.I 1
.C
earn
.W
COMMERZBANK SEES LOWER OPERATING PROFIT THIS YEAR.
    FRANKFURT, April 1 - Commerzbank AG <CBKG.F> management
board chairman Walter Seipp said that from the present
viewpoint the bank must expect 1987 full operating profit to be
lower than in 1986.
    In the first two months of the year, partial operating
profit -- excluding trading on the bank's own account -
declined, he said, without giving details.
    The interest surplus fell 2.8 pct compared with 2/12ths of
1986 results, while the commission surplus, because of the
quiet stock exchange business, fell back still more strongly.
By contrast the personnel and fixed asset expenses increased.
    German banks do not report full operating profit. But Seipp
said last year the figure for the first time had topped one
billion marks for the parent bank, and the group result was
around 50 pct higher than this.
    Commenting on 1986, Seipp said, "we were able to raise the
full operating profit...Slightly above the record result of
1985 because own account profits increased slightly."
    He gave no concrete details but added that in January and
February, good own account trading profits meant that the drop
in full operating earnings was more modest than that in the
partial operating figure.
    The bank would, as a result, be more profit-oriented in
future, developing, for example, more into investment banking,
keeping a tight rein on personnel costs and dampening
expenditures on fixed assets.
    Turning to 1986 results, Seipp said by year end there had
been a strong growth in business volume.
    Over the year business volume rose by 9.9 pct to 93.2
billion marks compared with 1985, Seipp added.
    Group balance sheet volume rose by 8.0 pct to 148.15
billion. It would have been around five billion marks higher
still if currency relationships had remained unchanged.
    In the parent bank, the interest surplus rose nine pct in
the year, while the interest margin held roughly at 1985's 2.56
pct despite pressure on credit rates.
    The surplus on commission business, which had soared by a
quarter in 1985, rose by 11.6 pct last year thanks almost
exclusively to growth in securities commissions, Seipp said.
    Personnel expenditure was up 11.9 pct last year, at more
than 1.5 billion marks. Fixed asset expenditure rose by 9.6 pct
to more than 650 mln.
    As a result, the parent bank partial operating profit rose
by 3.2 pct to 752 mln marks.
    Parent bank tax payment rose to 244 mln marks last year
from 233 mln in 1985.
    Seipp said extraordinary earnings included a "high
two-figure million" in profit from the sale of the bank's AEG AG
<AEGG.F> shares to Daimler-Benz AG <DAIG.F> during the latter's
majority stake purchase booked last year.
    The ability of the bank to write off depreciations in
credit business against profits from securities trading and
earnings on the sale of stakes had been utilised, as in prior
years, to its full extent.
    Because of numerous insolvencies at home, by far the
largest part of the provisions were set aside for individual
write-downs from domestic business. Abroad, the circle of
problem debtor countries rose last year, although the ratio of
credit exposure to provisions improved further.
    Seipp said that because about half the group's exposure to
problem nations was in dollars, the bank had swapped into
dollars individual provisions hitherto held primarily in marks.
    "This means that no open currency positions exist any longer
on the amount of the provision that is made against an actual
default," he added.
    Despite the increase in concern over debtor nations in the
last few weeks, he said, the international banking community is
better armed than it was against payment problems.
    All banks had significantly strengthened their capital
base, most European banks had made considerable provisions
against bad debts while goverments and central banks were
better prepared for unforseen difficulties.
    He described debt-equity swaps as a very interesting new
approach to indebted nations' problems. There was a lot of
interest in direct investment via an equity participation in
Latin America, particularly from West German firms.


.I 2
.C
dlr;money-fx;
.W
BANK OF JAPAN INTERVENES IN EARLY TOKYO AFTERNOON.
    TOKYO, April 1 - The Bank of Japan intervened in the market
in the early afternoon, buying dollars around 147.30 yen and
continuing to buy them as high as 147.50 yen, dealers said.
    The Bank intervened just after the dollar started rising on
buying by securities houses at around 147.05 yen, and hoped to
accelerate the dollar's advance, they said.
    The dollar rose as high as 147.50 yen.


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


.I 4
.C
money-fx;interest;gnp;
.W
SEIPP SAYS GERMAN INTEREST RATES SHOULD FALL.
    FRANKFURT, April 1 - The Bundesbank should take further
steps to reduce German interest rates to protect the mark from
further appreciation and to persuade investors to bring
long-term yields lower, Commerzbank AG <CBKG.F> management
board chairman Walter Seipp said.
    But he told the bank's annual news conference this did not
mean a cut in leading interest rates, rather a reduction in
money market rates through bringing the allocation rates down
for Bundesbank securities repurchase agreements.
    "Leading interest rates are not the decisive rates," he said.
"The money market rates are the important ones."
    Seipp said the Bundesbank should move away from allocating
money market liquidity at a fixed 3.8 pct as it has in recent
tender allocations.
    An easier monetary policy would not mean a loss of
credibility for the Bundesbank in its containment of monetary
growth. A fall in short rates would make the public aware of
the high yields in bonds and lead to a longer-term capital
formation, braking the expansion of money supply.
    "Thus, you can have lower rates and also a normalisation of
monetary growth both at the same time," he added.
    Seipp said there were no grounds to paint too black a
picture of the German economy, since company profitability had
improved over recent years and domestic oriented firms were
profiting from cheaper imports because of the rise in the mark.
    Growth this year should be at least one pct, he said,
describing the downturn in production in the first months as a
false start, unrepresentative of the rest of the year.
    After an economic contraction in the first quarter, the
economy should show an uptrend in the last three. "We don't
believe that the economy has tipped over, but see it more as a
'growth dip,'" Seipp said.
    But Seipp also called for support for growth from fiscal
policy, saying the top rate of income and corporate tax should
be brought down to 49 pct. The current peak rate is 56 pct.
    The additional tax cuts brought forward to next January
were no substitute for support for growth.
    Seipp added the federal government should make "further
courageous steps to decrease the state's proportion of the
German economy and to increase its flexibility."


.I 6
.C
palm-oil;palmkernel;oilseed;veg-oil;
.W
MALAYSIA RAISES PALM OIL EXPORT DUTIES.
    KUALA LUMPUR, April 1 - The Malaysian government said it
raised the export duty on processed palm oil (ppo) to 70.90
ringgit per tonne from 64.06 in March, effective today.
    Export duty on crude palm oil (cpo) rose to 38.30 ringgit
per tonne from 16.06 last month.
    The gazetted price for ppo rose to 819.6600 ringgit per
tonne from 796.8604 a month earlier and that on cpo to 711.0037
ringgit from 617.8238.
    The export duty and gazetted price of palm kernel stood
unchanged at 191.15 and 955.75 ringgit per tonne respectively.


.I 11
.C
dlr;money-fx;
.W
CURRENCY INSTABILITY WILL NOT LAST - SUMITA.
    TOKYO, April 1 - Bank of Japan Governor Satoshi Sumita said
the present foreign exchange market instability will not last
long as there is caution in the market regarding the rapid
decline of the U.S. Unit.
    He told reporters the major currency nations are determined
to continue their concerted intervention whenever necessary to
stave off speculative dollar selling in line with their
February 22 currency stability agreement in Paris.
    Sumita also said he did not see the recent dollar drop as
anything like a free-fall.


.I 15
.C
earn
.W
SKYLARK CO LTD <SKLK.T> 1986 YEAR.
    TOKYO, April 1 -
    Group shr 65.44 yen vs 73.30
    Net 4.48 billion vs 4.19 billion
    Current 10.85 billion vs 9.77 billion
    Operating 9.65 billion vs 9.54 billion
    Sales 103.53 billion vs 94.39 billion
    NOTE - Company forecast for current year is group shr 70.05
yen, net 4.80 billion, current 11.20 billion and sales 113
billion.


.I 17
.C
gnp
.W
GERMAN 2.2 PCT GROWTH AVERAGE SEEN TO 1991.
    DUESSELDORF, April 1 - The economy will grow by an average
rate of 2.2 pct a year in real terms between now and the end of
1991, Westdeutsche Landesbank Girozentrale (WestLB) said in an
annual report.
    A year ago WestLB had forecast average growth of just under
three pct for 1986-1990.
    The 1987 report said gross national product would only
expand a real 1.7 pct this year -- below previous expectations
-- because of weaker exports. Growth rates will pick up later,
however, producing a 2.2 pct increase on average for the
five-year period.
 MORE

.I 18
.C
acq
.W
******SWEDEN'S BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER.
TODAY - OFFICIAL.

.I 19
.C
acq
.W
COURT BLOCKS DELTA-WESTERN AIRLINES MERGER.
    SAN FRANCISCO, April 1 - A U.S. Appeals court last night
blocked the 860 mln dlr merger of Delta Airlines Inc <DAL.N>
and <Western Airlines> just hours before it was to go into
effect because of a dispute over union representation.
    The ruling came in a lawsuit in which the Air Transport
Employees union said Western's management should fulfil a
promise to honour union contracts if a merger took place.
    The airlines argued that Western's promise could not be
enforced in a takeover by a larger company. Airlines officials
could not be reached for comment on the ruling, which halts the
merger until arbitration on the dispute is completed.


.I 21
.C
acq
.W
BOLIDEN TO ANNOUNCE MAJOR CORPORATE TAKEOVER - OFFICIAL.
    STOCKHOLM, April 1 - Boliden AB <BLDS ST> mining and metals
group said it will announce a major foreign corporate takeover
today involving a company with an annual turnover of two
billion crowns.
    A Boliden spokesman told Reuters details of the
announcement would be given at a news conference by chairman
Rune Andersson at 1030 gmt today. He said the company involved
employed 4,000 people, but declined to name the takeover price
or say what field the firm operated in.
    Share analysts said they expected Boliden to announce it
will be taking over the U.S. Allis-Chalmers Corp <AH.O> but
company officials refused to confirm the reports ahead of the
news conference.


.I 22
.C
money-fx
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, April 1 - The Bank of England said it had invited
an early round of bill offers from the discount houses after
forecasting a shortage of around 1.2 billion stg in the money
market today.
    Among the main factors affecting liquidity, bills for
repurchase by the market will drain some 526 mln stg while
bills maturing in official hands and the take-up of treasury
bills will remove around 1.79 billion stg. A rise in note
circulation will take out a further 105 mln stg.
    Partly offsetting these outflows, exchequer transactions
will add around 1.01 billion stg and bankers' balances above
target some 185 mln stg.


.I 23
.C
gnp
.W
TURKEY ESTIMATES 1986 GROWTH AT EIGHT PCT.
    ANKARA, April 1 - Turkey's Gross National Product grew an
estimated 8.0 pct in 1986 at fixed 1968 prices, compared with
5.1 pct in 1985, the State Statistics Institute said.
    Reporting full-year data, it also said Gross Domestic
Product rose 8.3 pct compared with 5.1 pct in 1985. An earlier
estimate from nine-month data put full-year GNP and GDP growth
both at 7.9 pct.
    The government's GNP growth target for 1987 is five pct,
the same level it had set for 1986.
    The institute estimated per capita GNP for 1986 at 1,116.6
dlrs, up from 1,045.3 dlrs in 1985.
    Officials blame the high 1986 GNP growth on a surge in
domestic demand stemming partly from poorly controlled
municipal expenditures in the early part of the year.
    Industry grew at 11.1 pct in real terms in 1986 compared
with 6.6 pct in 1985 while agriculture expanded 7.4 pct
compared with 2.8 pct.


.I 26
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 689 MLN STG EARLY HELP.
    LONDON, April 1 - The Bank of England said it had provided
the money market with early assistance of 689 mln stg in
response to an early round of bill offers from the discount
houses. This compares with the Bank's estimate that the system
would face a shortage of around 1.2 billion stg today.
    The central bank made outright purchases of bank bills
comprising 347 mln stg in band one at 9-7/8 pct, 207 mln stg in
band two at 9-13/16 pct and 135 mln stg in band three at 9-3/4
pct.


.I 29
.C
tin
.W
MALAYSIAN MINERS SAY U.S. SELLING TOO MUCH TIN.
    KUALA LUMPUR, April 1 - Malaysian miners criticised the
U.S. For violating an agreement with Southeast Asian producers
by selling more stockpiled tin in 1986 than agreed.
    The U.S. General Services Administration sold 5,490 tonnes
of tin in 1986, well above an agreed upon annual limit of 3,000
tonnes, the States of Malaya Chamber of Mines said.
    In its latest annual report, it said the U.S. Had promised
to limit sales of tin in a memorandum of understanding signed
with the six-member Association of Southeast Asian Nations
(ASEAN) in December 1983.
    "The U.S. Appears to have lost sight of the U.S./ASEAN
Memorandum of Understanding," the Chamber said.
    The Chamber estimated the U.S. Strategic stockpile held
180,444 tonnes of tin in December 1986, 137,744 tonnes in
excess of of its original stockpile goal of 42,700.
    The main ASEAN tin producers are Malaysia, Indonesia and
Thailand, which produce the bulk of the world's tin.


.I 30
.C
earn
.W
GROUPE BRUXELLES LAMBERT PROFIT UP.
    BRUSSELS, April 1 - Net consolidated profit after deduction
for minorities 6.52 billion francs vs 5.40 billion.
    Non-consolidated net profit 3.46 billion francs vs 3.05
billion.
    Note - Results for year 1986. Company's full name is Groupe
Bruxelles Lambert SA <LAMB.BR>.
    Proposed net final dividend on ordinary shares 70 francs vs
65 to take total net payment for year to 120 francs vs 110.


.I 36
.C
acq
.W
AJINOMOTO TO BUY OUT JOINT FOOD VENTURE PARTNER.
    TOKYO, April 1 - Ajinomoto Co Inc <AJIN.T> said it will
sign around end-April to buy the 50 pct of <Knorr Foods Co
Ltd>, capitalised at four billion yen, that it does not already
own from its U.S. Partner <CPC International Inc>.
    Ajinomoto will also acquire 50 pct each of CPC's two sales
subsidiaries and six production units in Hong Kong, the
Philippines, Singapore, Malaysia, Taiwan and Thailand, he said.
    The total cost of the acquisition is 340 mln dlrs, the
spokesman said.


.I 39
.C
cocoa
.W
GHANA COCOA PURCHASES SLOW.
    LONDON, April 1 - The Ghana Cocoa Board said it purchased
214 tonnes of cocoa in the 24th week, ended March 19, of the
1986/87 main crop season, compared with 456 tonnes the previous
week and 372 tonnes in the 24th week ended March 27 of the
1985/86 season.
    Cumulative purchases so far this season stand at 217,449
tonnes, ahead of the 204,256 tonnes purchased by the 24th week
of last season.


.I 40
.C
acq
.W
U.K. MERGER CLEARANCES.
    LONDON, April 1 - The Secretary of State for Trade and
Industry said he had decided not to refer the proposed
acquisition by Reed International Plc <REED.L> of <Technical
Publishing Company Inc> to the Monopolies and Mergers
Commission.
    The proposed acquisition by <Rosehaugh Plc> of <The General
Funds Investment Trust Plc> was also cleared.


.I 41
.C
ship;iron-steel;
.W
TAIWAN SEES SHARP DECLINE IN SHIPBREAKING.
    By Chen Chien-kuo, Reuters
    TAIPEI, April 1 - Taiwan's shipbreaking industry is
expected to decline sharply this year despite the boom in 1986
because of keener competition from South Korea and China, the
rising Taiwan dollar and U.S. Import curbs on steel products,
industry sources said.
    Last year, Taiwanese breakers demolished a record 344
vessels totalling 3.69 million light displacement tons (ldt),
up on 165 of 2.97 million ldt in 1985, Lin Chung-jung, a Taiwan
Shipbreaking Industry Association (TSIA) spokesman, told
Reuters.
    China scrapped vessels of some 1.1 mln ldt last year while
South Korea demolished ships of 910,000 ldt, he said.
    Yao Liu, president of Chi Shun Hwa Steel Co, a leading
shipbreaker and steel producer in Kaohsiung, told Reuters, "We
expect to scrap fewer ships this year because of an expected
decline in our steel product exports."
    Lin said many breakers predicted a 20 pct decline in
scrapping operations this year due to falling demand from the
U.S., Japan and Southeast Asia for Taiwanese steel.
    Taiwan agreed last year to voluntarily limit its steel
product exports to the U.S. To 120,000 tonnes in the first half
of 1987 from about 260,000 tonnes in the first half of 1986, a
Taiwan Steel and Iron Association official said.
    Yao said the rising Taiwan dollar means Taiwan's steel
exports are more expensive than South Korea's and China's.
    The Taiwan dollar has strengthened by some 16 pct against
the U.S. Unit since September 1985 and some bankers and
economists said it could appreciate to 32 to the U.S. Dollar by
the end of the year from 34.23 today, Yao said.
    In comparison, the won rose by about five pct and yuan
remained stable during the same period, he added.
    "We have lost some orders to South Korea and mainland China
because foreign importers have switched their purchases," he
said.
    Taiwan's steel exports to the U.S., Japan and Southeast
Asia slipped to 148,000 tonnes in the first two months of 1987
from about 220,000 tonnes a year earlier, the Taiwan Steel and
Iron Association official said.
    He said he expected further declines in later months but
did not give figures.


.I 43
.C
wheat;grain;
.W
U.K. INTERVENTION FEED WHEAT TENDER RESULT AWAITED.
    LONDON, April 1 - Grain traders said they were still
awaiting results of yesterday's U.K. Intervention feed wheat
tender for the home market.
    The market sought to buy 340,000 tonnes, more than double
the remaining 150,000 tonnes available under the current
tender. However, some of the tonnage included duplicate bids
for supplies in the same stores.
    Since the tenders started last July 861,000 tonnes of
British feed wheat have been sold back to the home market.


.I 44
.C
acq;coffee;
.W
SINGAPORE'S UIC TO BUY INTO TECK HOCK COFFEE FIRM.
    SINGAPORE, April 1 - Singapore's United Industrial Corp Ltd
(UIC) has agreed in principle to inject 16 mln dlrs in
convertible loan stock into <Teck Hock and Co (Pte) Ltd>, a
creditor bank official said.
    UIC is likely to take a controlling stake in the troubled
international coffee trading firm, but plans are not finalised
and negotiations will continue for another two weeks, he said.
    Teck Hock's nine creditor banks have agreed to extend the
company's loan repayment period for 10 years although a
percentage of the new capital injection will be used to pay off
part of the debt.
    Teck Hock owes more than 100 mln Singapore dlrs and since
last December the banks have been allowing the company to
postpone loan repayments while they try to find an investor.
    The nine banks are Oversea-Chinese Banking Corp Ltd, United
Overseas Bank Ltd, Banque Paribas, Bangkok Bank Ltd, Citibank
N.A., Standard Chartered Bank Ltd, Algemene Bank Nederland NV,
Banque Nationale de Paris and Chase Manhattan Bank NA.


.I 45
.C
interest
.W
H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY.
    HONG KONG, April 1 - Banks in Hong Kong are likely to raise
prime rates by half a percentage point to 6-1/2 pct following a
one-quarter point prime rate increase by two major U.S. Banks
yesterday, dealers said.
    They told Reuters local banks may decide on the increase at
this weekend's routine meeting of the Hong Kong Association of
Banks.
    G.C. Goh, chief dealer of the Standard Chartered Bank, said
prime rate increases by Citibank and Chase Manhattan Bank to
7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit.
    Goh said local banks want to restore the prime to 6-1/2
pct, the level at beginning of 1987.
    The banks raised the prime to the current six pct from five
pct on February 28 after cutting it 1-1/2 points from 6-1/2 on
January 15 in response to upside pressure on the Hong Kong
dollar, he said.
    The medium and longer term interbank rates firmed today,
with three months ending at 5-1/16 to 4-7/8 pct against
yesterday's five to 4-13/16 close. The overnight rate, however,
fell to 3-1/2 to three pct from 4-1/2 to four because of
increased liquidity for a local stock issue.


.I 48
.C
money-fx;interest;
.W
GERMAN CALL MONEY DROPS BACK AT MONTH START.
    FRANKFURT, April 1 - Call money rates fell to 3.85/95 pct
from five pct yesterday in moderate trading as month end
tightness disappeared and operators took positions for April.
    Dealers said they expected rates to remain within a 3.70 to
four pct range this month. A minor tax payment period on behalf
of customers mid-month, the long Easter weekend and pension
payments were unlikely to tighten rates significantly.
    Next Wednesday, 14.9 billion marks are leaving the system
on the expiry of a securities repurchase pact. But dealers said
they expected the Bundesbank to fully replace the outflow with
a new tender at a fixed rate of 3.80 pct.
    Commerzbank AG's management board chairman Walter Seipp
called on the Bundesbank to reduce interest rates to protect
the mark through bringing the allocation rate for securities
repurchase agreements down.
    But dealers said the Bundesbank was unlikely to ease credit
policies at the moment. There was little domestic and foreign
pressure for lower rates and no signs of a change.
    Yesterday one or two large West German banks effectively
drained the domestic money market of liquidity in order to
achieve higher rates from their overnight deposits, dealers
said.
    Bundesbank figures showed banks held an average daily 50.7
billion marks in minimum reserves at the central bank over the
first 30 days of March, the exact requirement needed just one
day before the end of the month.
    Actual holdings on Monday were 42.0 billion marks.
    Because rates soared to the level of the Lombard emergency
funding rate yesterday, banks fell back on the loan facility to
draw down a high 5.3 billion marks in an attempt to meet
Bundesbank needs, the data showed.


.I 49
.C
acq
.W
****SWEDEN'S BOLIDEN AB TAKES OVER U.S. ALLIS-CHALMERS CORP FOR.
600 MLN CROWNS - OFFICIAL

.I 50
.C
acq
.W
MITSUBISHI HEAVY, C. ITOH TO SELL TRIGUNA STAKES.
    TOKYO, April 1 - Mitsubishi Heavy Industries Ltd <MITH.T>
(MHI) and C. Itoh and Co Ltd <CITT.T> have decided to sell
their combined 65 pct stake in Indonesia's <Pt Triguna Utama
Machinery Industries> to <Caterpillar Tractor Co>,  spokesmen
for the two Japanese companies said.
   Triguna, set up in 1982, is owned 40 pct by MHI and 25 pct
by C. Itoh and 35 pct by an Indonesian company. It makes about
10 forklift trucks and a similar number of excavators each
month in technological cooperation with MHI.
    The spokesmen said the sale results from an expected
restructuring later this year of the 50/50 Caterpillar/MHI
joint venture Japanese company <Caterpillar Mitsubishi Ltd>,
formed in 1963.
    They said the venture will be renamed <Shin Caterpillar
Mitsubishi Ltd> and capitalised at 23 billion yen. It will
still be owned equally by MHI and Caterpillar and will be set
up with the aim of centralising MHI's excavator business.


.I 53
.C
acq
.W
******SWEDEN'S BOLIDEN AB TAKES OVER MINING GEAR UNITS OF.
ALLIS-CHALMERS CORP FOR 600 MLN CROWNS

.I 54
.C
sugar
.W
SUGAR TRADERS FORECAST LIKELY EC SUGAR REBATE.
    LONDON, April 1 - London traders say the European Community
is likely to award a maximum rebate of 46.80 European currency
units per 100 kilos at today's tender, while traders in Paris
predict a maximum award of 46.40 Ecus.
    Last week the EC awarded licences for 59,000 tonnes at a
rebate of 45.678 Ecus.
    Trade views differed on the amount of sugar likely to be
released today.
    London traders said the EC Commission will probably
endeavour to release a large tonnage, and as much as  100,000
tonnes may be authorised for export under licences up to
end-September.
    Paris traders put the likely tonnage at around 60,000.


.I 57
.C
acq
.W
BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION.
    STOCKHOLM, April 1 - Swedish mining and metals group
Boliden AB <BLDS ST> said it would buy the mining equipment
operations of the U.S. Allis-Chalmers Corp <AH.O>, amounting to
more than 50 pct of group sales, for 600 mln crowns.
    Boliden president Kjell Nilsson told a news conference the
acquisition of the Allis-Chalmers unit, which he described as
the world's leading producer of equipment for the mineral
processing industry, would yield positive synergy effects for
Boliden mining, metals and engineering operations.
    Nilsson said the takeover also will provide opportunities
to cooperate with the mining and materials handling operations
of Boliden's parent company, <Trelleborg AB>.
    He said Allis-Chalmers was selling out because it needed
new cash after suffering big losses in its farm equipment
operation.
    The deal is subject to approval by Allis-Chalmers' annual
meeting, company officials said.


.I 58
.C
gold
.W
PROPOSED JAPAN TAX MAY DAMPEN TOKYO GOLD TRADING.
    TOKYO, April 1 - A proposed sales tax on gold transactions
could put a damper on the Tokyo market and encourage a shift of
trading to Hong Kong and Singapore, senior vice president and
Tokyo branch manager of Credit Suisse Paul Hofer told a press
conference.
    "If you impose five pct on both buy and sell transactions,
Tokyo participants in the gold market could be out of business,"
he said. The tax would create such a spread that Japanese would
be unable to compete in the international market, he added.
    "How can the government really raise taxes if the system
they impose is prohibitive of generating business?" he said.
    The government now imposes a 15 pct tax on physical trades
exceeding 37,500 yen for gold jewellery and coins and a 2.5 yen
tax per 10,000 yen on futures transactions, gold dealers said.
    The new five pct tax would be imposed on companies trading
more than 100 mln yen a year and apply to paper gold trades,
gold deposits with banks and trading of gold bars as well as
that of jewellery and coins, dealers said.
    However, the tax would lower the rate on jewellery and
coins to only five pct from the current 15 pct, they said.
    Hofer said in 1982 Switzerland had imposed a 5.6 pct gold
turnover tax on Jan 1, 1980, but abolished it on Oct 1, 1986.
    A study by one of the Swiss banks showed that in early
1980, the first year of the tax, the volume for all Swiss banks
fell by up to 25 pct compared with 1978 and 1979, Hofer said.
    Transactions of paper gold also fell up to 75 pct of the
volume prior to imposition of the tax, he said.
    While gold transactions in Switzerland decreased, the
volume of trades outside the country, particularly in London
and Luxembourg, increased between 10-25 pct, Hofer said.
    Japan is a major importer of gold, buying a yearly average
just under 200 tonnes, gold dealers said.
    Last year Japan imported about 600 tonnes of gold, but the
government had bought about 300 tonnes for minting coins to
commemorate the 60th year of Emperor Hirohito's reign, dealers
said.
    Gold trading in Tokyo is dominated mainly by Japanese
trading companies, while Credit Suisse is the major foreign
participant.
    Daily turnover in the Tokyo spot market ranges between one
and 10 tonnes with the average around three tonnes, while
futures turnover amounts to about four tonnes, gold dealers
said.
    "All of us are concerned daily with the fact that the Tokyo
market is growing, that Japan is becoming one of the three
major financial markets in the world ... And in my personal
opinion I think it would be a very big mistake to put a damper
on this positive growth or developments by imposing such a tax,"
Hofer said.
    "I don't think it fits the philosophy of an
internationalising market," he added.
    Officials of several major Japanese trading houses,
attending the press conference, said they supported Credit
Suisse's call for the government not to impose the gold tax.


.I 59
.C
interest
.W
INDIAN RATE CUTS TO SPARK INDUSTRY, AGRICULTURE.
    NEW DELHI, April 1 - The Indian Finance Ministry's
announcement in Parliament yesterday, changing the nation's
interest rate structure, will benefit industry and agriculture
by providing loans at lower interest, bankers and brokers said.
    The changes, effective today, included reducing commercial
bank lending rates that have ranged between 15 pct and 17.5 pct
by one percentage point.
    New rates, which affect both Indian and foreign banks, also
include a one percentage point gain, to an annual 10 pct, on
deposits of two years or more but less than five.
    Bank deposits of five years or more carrying 11 pct
interest have been abolished.
    Bankers said the interest rate modifications reflect the
government's concern to reduce the costs of borrowing and help
improve world competitiveness of Indian goods.
    There is likely to be a shift to short-term bank deposits
by long-term depositors, bankers predicted. This will create
the flexibility to draw and re-invest funds in either equity
shares or short-term bank deposits, they said.
    A merchant banker also said reduced manufacturing costs due
to lower lending rates are likely to boost the share market.
    Tata Steel, a trend setter on the Bombay Stock Exchange,
opened today higher at 1,040 rupees against yesterday's closing
of 1,012.50 rupees.
    A stockbroker said investors may be less enthusiastic now
to buy convertible and non-convertible debentures because the
Finance Ministry has reduced the annual interest rate to 12.5
pct and 14 pct respectively from 13.5 and 15 pct respectively.
    "But overall debenture prospects remain bright because the
rates of interest on them will still be higher than what banks
pay for deposits of similar maturity," a merchant banker said.


.I 60
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP.
    LONDON, April 1 - The Bank of England said it had revised
its estimate of the shortage in the money market up to 1.3
billion stg from 1.2 billion before taking account of its early
operations.
    The Bank has provided 689 mln stg assistance so far today.


.I 61
.C
acq
.W
INTERNATIO-MUELLER ACQUIRES CANADIAN COMPANY.
    ROTTERDAM, April 1- Internatio-Mueller NV <INTN.AS> said it
will acquire <Promac Controls Inc> of Canada but declined to
comment on the amount of the payment, which will be in cash.
    Promac, which produces measurement and regulating
equipment, has a work force of 50 and had 1986 turnover of five
mln guilders, an Internatio spokesman said.
    He said the takeover fits into the company's drive for
expansion in the U.S and Canada and further acquisitions are
possible.
    Promac Controls will be part of Internatio's
electrotechnical sector.


.I 62
.C
wheat;grain;
.W
U.K. INTERVENTION FEED WHEAT SOLD TO HOME MARKET.
    LONDON, April 1 - A total of 126,031 tonnes of U.K.
Intervention feed wheat was sold to the home market at this
week's tender, provisional results show, the Home Grown Cereals
Authority (HGCA), said.
    Actual prices were not reported but the wheat was sold at,
or above, the March intervention price of 119.17 stg per tonne.
    Grain traders sought to buy about 340,000 tonnes.


.I 64
.C
oilseed;coconut;
.W
SRI LANKA TO UPGRADE QUALITY OF COCONUT PRODUCTS.
    COLOMBO, April 1 - The Sri Lankan cabinet approved
recommendations to upgrade the quality of coconut fibre
products, the government said.
    It said the recommendations also suggested that
encouragement be given for the manufacture of value-added
products from coconut fibre and a market development programme
be launched for traditional and value-added products.
    It also suggested the setting up of a marketing mission on
coconut fibre to be sent this month to principal target
markets.
    Sri Lanka is the world's second largest exporter of
dessicated coconut after the Philippines.


.I 65
.C
acq
.W
HOOGOVENS CONCLUDES TAKEOVER OF PHILIPS CIREX UNIT.
    IJMUIDEN, Netherlands, April 1 - Dutch steel concern
<Hoogovens Groep BV> said it had reached agreement with NV
Philips Gloeielampenfabrieken <PGLO.AS> on its takeover of
Cirex, a specialised Philips precision wax moulding unit.
    Neither party would reveal financial details of the deal,
initially announced in October.
    Hoogovens said Cirex turnover had grown in recent years to
30 mln guilders in 1986 and it expected further expansion.
    The unit delivers mainly to the car industry.
    Hoogovens said the acquisition would strengthen its
position as a supplier to industry of high-value metal
products.


.I 67
.C
gold;silver;
.W
PRECIOUS METALS CLIMATE IMPROVING, SAYS MONTAGU.
    LONDON, April 1 - The climate for precious metals is
improving with prices benefiting from renewed inflation fears
and the switching of funds from dollar and stock markets,
brokers Samuel Montagu and Co Ltd said.
    Silver prices in March gained some 15 pct in dlr terms due
to a weak dollar and silver is felt to be fairly cheap relative
to gold, Montagu said in its monthly silver newsletter. In
March the gold/silver ratio narrowed from 74 to less than 67.
    The supply/demand position has improved in the past year,
and despite a silver market surplus, the quantity of silver is
modest enough to be absorbed by investors, it added.
    The report said the firmness in oil prices was likely to
continue in the short term.
    A period of consolidation might be necessary before prices
attempted to move significantly higher,it said, but so long as
the dollar remains under pressure then the outlook for silver
was positive.
    However silver was less likely to continue to outpace the
other metals by such a margin, Montagu said.


.I 68
.C
oilseed;veg-oil;ship;grain;meal-feed;
.W
ROTTERDAM GRAIN HANDLERS STAGE LIGHTNING STRIKES.
    ROTTERDAM, April 1 - Lightning strikes hit the grain sector
of the port of Rotterdam today after employers turned down
union demands for shorter working hours in a new labour
agreement, transport union FNV spokesman Bert Duim said.
    Around 140 grain handlers stopped work, 125 of them at the
two Europoort locations of Graan Elevator Mij (GEM), which
handles about 95 pct of grain, oilseeds and derivatives passing
through Rotterdam.
    GEM managing director Pieter van der Vorm said the
facilities were 40 pct operational.
    The employers had invited the unions for talks later today,
but details of the labour agreement would not be on the agenda,
Van der Vorm said.
    It is barely one month since the end of an eight-week
campaign of lightning strikes against redundancies in
Rotterdam's general cargo sector, which stevedoring companies
said cost them millions of guilders.


.I 69
.C
acq
.W
BOLIDEN TAKES OVER ALLIS-CHALMERS DIVISION.
    STOCKHOLM, April 1 - Swedish mining and metals group
Boliden AB said it would buy the mining equipment operations of
the U.S. Allis-Chalmers Corp, amounting to more than 50 pct of
group sales, for 600 mln crowns.
    Boliden president Kjell Nilsson told a news conference the
acquisition of the Allis-Chalmers unit, which he described as
the world's leading producer of equipment for the mineral
processing industry, would yield positive synergy effects for
Boliden mining, metals and engineering operations.
    Nilsson said the takeover will provide opportunities to
cooperate with the mining and materials handling operations of
Boliden's parent company, Trelleborg AB.
    He said Allis-Chalmers was selling out because it needed
new cash after suffering big losses in its farm equipment
operation.
    The deal is subject to approval by Allis-Chalmers' annual
meeting, company officials said.


.I 71
.C
cocoa
.W
MALAYSIA DECLINES TO STATE POSITION ON COCOA PACT.
    By Rajan Moses, Reuters
    KUALA LUMPUR, April 1 - Government officials in Malaysia, a
major cocoa producer, have declined to say whether it will join
the International Cocoa Agreement (ICCA) for which buffer stock
rules were agreed in London last week.
    Ministry of Primary Industries officials said in January
the cabinet would decide on Malaysia's participation, but so
far a decision has not been announced. The government is said
to be in favour of joining the pact, but local cocoa growers
and traders told Reuters they are against the idea because
certain provisions in it may be to their disadvantage.
    Malaysia is the world's fourth largest cocoa producer. The
government feels that the pact, through its buffer stock
mechanism, can help stabilise prices in a market which is
labouring under surpluses, officials said.
    But growers and traders are concerned Malaysia's
participation in the pact will require them to pay a levy for
exports of cocoa to non-member countries of the ICCA.
    They estimate the levy at around 100 ringgit a tonne at
current prices and said they are not prepared to accept it
because a big portion of Malaysia's cocoa exports, officially
estimated at 112,000 tonnes in 1986, goes to non-members.
    Most growers and traders added they are also against a
buffer stock measure under the agreement which requires
withholding of cocoa stocks when prices slump.
    Malaysia, which produced 117,000 tonnes of cocoa last year,
might be forced to withhold up to 70,000 tonnes worth some 30
mln ringgit under such a measure in the long-term, and this
might affect their economic viability, they said.
    "The cost of maintaining such a stock can be high and it
will be a real messy business for the government and the trade
if it ever occurs," an industry source said.
    The growers and traders also said that under new buffer
stock rules Malaysia can continue to benefit even if it is not
a member of the pact, as the buffer stock manager is also
allowed to buy from non-members for the stockpile.
    Under the new rules purchases from non-members, such as
Malaysia, will be limited to 15 pct of the total stock.
    Malaysia has come under pressure from some producers to
join the pact soon, officials said, but they noted that it need
not rush to do so as there are provisions which allow countries
to join the agreement even at a later date.


.I 72
.C
dlr;money-fx;
.W
CURRENCY INSTABILITY WILL NOT LAST - SUMITA.
    TOKYO, April 1 - Bank of Japan Governor Satoshi Sumita said
the present foreign exchange market instability will not last
long as there is caution in the market regarding the rapid
decline of the U.S. Unit.
    He told reporters the major currency nations are determined
to continue their concerted intervention whenever necessary to
stave off speculative dollar selling in line with their
February 22 currency stability agreement in Paris.
    Sumita also said he did not see the recent dollar drop as
anything like a free-fall.


.I 75
.C
acq
.W
BOND CORP COMPLETES CONSOLIDATED PRESS PURCHASE.
    PERTH, April 1 - Bond Corp Holdings Ltd <BONA.S> said it
has completed the 1.05 billion dlr purchase of the electronic
media interests of unlisted <Consolidated Press Holdings Ltd>.
    The new company <Bond Media Ltd> now holds the television,
broadcasting and associated businesses previously held by Kerry
Packer's Consolidated, Bond Corp said in a statement.
    Packer, who made the sale in January, will be a director of
Bond Media. As previously reported, Bond Media will be publicly
floated with a rights issue to Bond Corp shareholders. Bond
Media will be 50 pct owned by Bond Corp and is expected to be
listed by the end of May, it said.


.I 76
.C
interest
.W
H.K. BANKS TO RAISE PRIME RATES SOON, DEALERS SAY.
    HONG KONG, April 1 - Banks in Hong Kong are likely to raise
prime rates by half a percentage point to 6-1/2 pct following a
one-quarter point prime rate increase by two major U.S. Banks
yesterday, dealers said.
    They told Reuters local banks may decide on the increase at
this weekend's routine meeting of the Hong Kong Association of
Banks.
    G.C. Goh, chief dealer of the Standard Chartered Bank, said
prime rate increases by Citibank and Chase Manhattan Bank to
7-3/4 pct from 7-1/2 may prompt Hong Kong banks to follow suit.
    Goh said local banks want to restore the prime to 6-1/2
pct, the level at beginning of 1987.
    The banks raised the prime to the current six pct from five
pct on February 28 after cutting it 1-1/2 points from 6-1/2 on
January 15 in response to upside pressure on the Hong Kong
dollar, he said.
    The medium and longer term interbank rates firmed today,
with three months ending at 5-1/16 to 4-7/8 pct against
yesterday's five to 4-13/16 close. The overnight rate, however,
fell to 3-1/2 to three pct from 4-1/2 to four because of
increased liquidity for a local stock issue.


.I 78
.C
earn
.W
GUARDIAN ROYAL PROFIT UP SHARPLY AT 143.8 MLN STG.
    LONDON, April 1 - Year to Dec 31
    Shr profit 63.6p vs loss 8.7p
    Final div 24p making 34p vs total 28.75p
    Pretax profit 143.8 mln stg vs 3.5 mln
    General underwriting loss on short-term business 79.8 vs
154.3
    NOTE - Company's full name is Guardian Royal Assuance Plc
<GREX.L>
    Underwriting profit on long-term insurance business 21.6
mln stg vs 19.1 mln
    Loss on discontinued international professional indemnity
business nil vs 40.6 mln stg
    Investment income 213.8 mln stg vs 193.6 mln
    Less interest payable 11.8 mln stg vs 14.3 mln
    Tax 38.8 mln stg vs 15.0 mln Minorities 3.3 mln stg vs 2.3
mln
    Extraordinary item - contingency claims provisions on
discontinued international business nil vs 55.0 mln stg


.I 80
.C
gold;silver;
.W
PRECIOUS METALS CLIMATE IMPROVING, SAYS MONTAGU.
    LONDON, April 1 - The climate for precious metals is
improving with prices benefiting from renewed inflation fears
and the switching of funds from dollar and stock markets,
brokers Samuel Montagu and Co Ltd said.
    Silver prices in March gained some 15 pct in dlr terms due
to a weak dollar and silver is felt to be fairly cheap relative
to gold, Montagu said in its monthly silver newsletter. In
March the gold/silver ratio narrowed from 74 to less than 67.
    The supply/demand position has improved in the past year,
and despite a silver market surplus, the quantity of silver is
modest enough to be absorbed by investors, it added.
    The report said the firmness in oil prices was likely to
continue in the short term.
    A period of consolidation might be necessary before prices
attempted to move significantly higher,it said, but so long as
the dollar remains under pressure then the outlook for silver
was positive.
    However silver was less likely to continue to outpace the
other metals by such a margin, Montagu said.


.I 82
.C
acq
.W
SWEDISH MATCH SELLS PORTUGUESE UNIT.
    STOCKHOLM, April 1 - Swedish Match AB <SMBS.ST> said it was
selling one of its Portuguese subsidiaries, <Sociedade de
Iniciativa e Aproveitamentos Florestais Sarl> (SIAF), to the
Porto-based <Sonae Group> for an undisclosed price.
    SIAF, a subsidiary of Swedish Match since 1946, had a
turnover last year of 62 mln crowns, the Swedish group said in
a statement.


.I 83
.C
earn
.W
SUN LIFE ASSURANCE profit up.
    LONDON, April 1 - Year 1986
    DIV 18.1p making 28.5p vs 23.74p
    PROFIT AFTER TAX 17.4 mln stg vs 14.1 mln
    TAX 0.7 mln stg vs 0.2 mln
    Bonus distribution rose to new record level of 125.1 mln
stg vs 114.9 mln in 1985
    Full name of company is Sun Life Assurance Society Plc
<SULL.L>.


.I 84
.C
earn
.W
******SUN ALLIANCE PRETAX PROFIT 180.4 MLN STG VS 37.7 MLN FOR.
1986

.I 86
.C
interest
.W
LOWER INTEREST RATES SEEN FOLLOWING IRISH BUDGET.
    By Paul Majendie, Reuters
    DUBLIN, April 1 - Financial markets welcomed public
spending cuts announced by Ireland's new minority government in
its budget, saying the move would lead to lower interest rates.
    Finance Minister Ray MacSharry, making cuts across the
board, reduced the Exchequer Borrowing Requirement to 1.85
billion punts, 10.7 pct of GNP, compared with 2.15 billion
punts or 13 pct of GNP last year.
    Allied Irish Banks foreign exchange dealer John Kearney
commented: "I would see interest rates coming down by two to 2.5
pct in the next three months."


.I 87
.C
earn
.W
SUN ALLIANCE reports sharp profit rise.
    LONDON, April 1 - Year 1986
    Shr 64.2p vs 14p
    Div 16p making 23.5p vs 17.5p
    Pretax profit 180.4 mln stg vs 37.7 mln
    Net after tax 137.1 mln vs 34.9 mln
    Minorities 10.5 mln vs 7.2 mln
    General premium income 1.99 billion stg vs 1.78 billion
    Long term premium income 704.5 mln vs 576.6 mln
    General insurance underwritng loss 78.3 mln vs 183.4 mln
    Long term insurance profits 27.3 mln vs 20.9 mln
    Investment and other income 231.4 mln vs 200.2 mln.
    Company's full name is Sun Alliance and London Insurance
Plc <SUNL.L>.

.I 88
.C
acq
.W
BOLIDEN SAYS IT NOW LEADER IN MINING GEAR.
    By Per Isaksson, Reuters
    STOCKHOLM, April 1 - Swedish mining and metals group
Boliden AB <BLDS.ST> said the takeover of the U.S.
Allis-Chalmers Corp's <AH.O> mining machinery division made it
the world's leading maker of such equipment.
    President Kjell Nilsson, announcing the 600 mln crown deal,
told a news conference Boliden would now become a truly
international concern with operations in Brazil, Chile and
other big minerals-producing nations.
    He said the Allis-Chalmers' division, accounting for some
50 pct of the U.S. Group's sales, would fit in well into
Boliden.


.I 89
.C
interest
.W
U.S. CREDIT MARKET OUTLOOK - PRIME RATE.
    NEW YORK, April 1 - The prospect that other banks will
follow industry leaders Citibank and Chase Manhattan in raising
their prime rate is likely to cast a pall over the credit
markets today, economists said.
    Bond prices had been making a smart recovery from two days
of heavy selling when Citibank surprised the market by
announcing a quarter-point increase in its prime rate to 7-3/4
pct. Chase Manhattan quickly followed.
    Prices quickly fell by a full point, even though the dollar
- the market's overriding concern of late - rose sharply on the
news.
    Citibank cited the higher cost of money, especially in the
Euromarket, as the reason for raising its prime rate.
    Part of this rise in market rates has been caused by fears
of a tighter Federal Reserve policy to defend the dollar, but
economists said it is too early to tell whether the Fed, whose
policy-making federal open market committee, FOMC, meets this
week, is already tightening its grip on credit.
    "The Fed seems to have been a bit slow in meeting the
banking system's reserve needs this statement period, but I
wouldn't conclude anything until I've seen the Fed data," said
Jeffrey Leeds of Chemical Bank.
 REUTER^M

.I 90
.C
grain
.W
CEREALS MCAS TO BE UNCHANGED NEXT WEEK.
    BRUSSELS, April 1 - Monetary compensatory amounts, MCA's,
will be unchanged for the week starting April 6, EC Commission
officials said.
    Cereals MCA's are plus 2.4 points for West Germany and the
Netherlands, minus two points for Denmark, minus eight points
for France, minus nine for Ireland, minus 5.7 for Italy, minus
25.7 for Britain, minus 44.1 for Greece and minus 10.5 for
Spain.


.I 91
.C
acq
.W
U.S. SUPREME COURT ALLOWS DELTA-WESTERN MERGER.
    WASHINGTON, April 1 - U.S. Supreme Court Justice Sandra Day
O'Connor early this morning lifted an Appeals Court injunction
blocking the planned merger of Delta <DAL> Airlines
Inc and Western Airlines <WAL>, the Court said.
    O'Connor's action came hours after a three-judge panel of
the 9th U.S. Circuit Court of Appeals in San Francisco had
blocked the merger until a dispute over union representation
had been settled by arbitration.
    A Supreme Court spokesman said O'Connor granted a stay of
the injuction, allowing the merger, worth nearly 860 mln dlrs,
to go through as planned later today.
    The Supreme Court spokesman provided no other details. Each
of the nine Supreme Court justices has jurisdiction over a
particular regional Appellate circuit and has the power to
provisionally overturn its rulings without comment.
    The Appeals Court ruling surprised officials of
Atlanta-based Delta, which had been preparing for the merger
for months and had already painted Delta logos on airplanes
belonging to Western, which has headquartera in Los Angeles.
    "Our plans were to finalize the merger at midnight tonight,"
Delta spokesman Bill Berry told the Atlanta Constitution late
last night. "There was really very little that remained to be
done."
    The ruling in San Francisco came in a lawsuit that had been
filed in a Los Angeles federal court in which the Air Transport
Employees union sought to force Western's management to fulfill
a promise that it would honor union contracts if a merger took
place.
    The airlines argued that Western's promise could not be
enforced in a takeover by a larger company.
    After learning of the appeals court ruling, Delta officials
last night spread the word by telephone that Western employees
should report for work today in their old uniforms, not in new
Delta outfits.
    Delta announced last September that it was purchasing
Western. The merger took place in December, and Western has
been operated as a Delta subsidiary since then. The Western
name was to have disappeared at midnight last night.
    At issue is whether the Western unions would continue to
represent Western employees after the integration of the two
airlines.
    While all but eight pct of Western's 11,000 employees are
unionized, only Delta's pilots are union members.
    Delta had maintained that the three unions having contracts
with Western -- The Association of Flight Attendants and the
Teamsters, as well as the Air Transport Employees -- would be
"extinguished" after today.


.I 92
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT REVISED DOWNWARDS.
    LONDON, April 1 - The Bank of England said it has revised
its estimate of today's shortfall to around 1.25 billion stg
from 1.3 billion before taking account of 775 mln stg morning
assistance.


.I 94
.C
coffee
.W
ICO COFFEE PRODUCERS TO DISCUSS MARKET SITUATION.
    LONDON, April 1 - International Coffee Organization, ICO,
producers will meet at 1500 GMT (0900 est) for a general
discussion of the market situation, producer spokesman
Lindenberg Sette said.
    The Brazilian delegate said several producers requested the
meeting but Brazil was not among them. The ICO executive
board's regular session this week has so far been confined to
routine matters, with no attempt by producers or consumers to
revive export quota negotiations, delegates said.
    Talks to restore quotas collapsed early last month when
producers and consumers failed to resolve differences on how
quotas should be allocated.
    Producer delegates said there was no sense of urgency among
producers to reopen quota talks with consumers, with most
countries now prepared to wait for the ICO's annual September
council session to restart negotiations.
    Members of the Inter-African Coffee Organization called for
today's producer meeting to exchange views on the market
situation, the producer delegates said.
    The lack of a new debate on export quotas here this week
was cited as the reason for renewed weakness in coffee prices
in London and New York futures, traders said.
    Near May in London hit a five-year low this morning at
1,220 stg, about 50 stg below last night's close, they said.
    The executive board session looks set to end today,
following a final session at 1600 GMT (1000 est) when a
consultancy report of the operation of the ICO will be
presented to producers and consumers, delegates added.


.I 95
.C
acq
.W
CITADEL <CDL> SETTLES WITH GREAT WESTERN <GWF>.
    GLENDALE, Calif., April 1 - Citadel Holding Corp said it
has settled its litigation with Great Western Financial corp.
    The company said under the terms, Great Western has agreed
not to acquire or seek to acquire any voting securities of
Citadel or propose a merger with Citadel for five years, and
Citadel has paid Great Western six mln dlrs.
    Citadel said it is continuing to pursue its claims against
Salomon Inc <SB>, which represented it in connection with the
disputed proposed merger with Great Western that was the
subject of the litigation.


.I 99
.C
acq
.W
******SOSNOFF ENDS DEAL WITH PRATT, SOUTHMARK ON POSSIBLE.
VENTURE FOR CAESARS BID    

.I 100
.C
acq
.W
BP <BP> STARTS BID FOR STANDARD OIL <SRD> SHARES.
    NEW YORK, April 1 - British Petroleum Co PLC said it has
started its previously announced 7.4 billion dlr offer to
purchase the 45 pct interest in Standard Oil Co that it does
not already own for 70 dlrs per share.
    In a newspaper advertisement, the company said the offer,
which is not conditioned on receipt of any minimum number of
shares, and associated withdrawal rights will expire April 28
unless extended.
    BP said it is asking Standard Oil for the use of its
shareholder list in disseminating the offer, on which the
Standard board has not yet taken a position.


.I 101
.C
acq
.W
VISUAL TECHNOLOGY <VSALC> CONTROL CHANGES.
    LOWELL, Mass., April 1 - Visual Technology Inc said a group
led by <Hambrecht and Quist Group> has acquired majority
ownership of Visual for 9,250,000 dlrs in equity financing.
    The company said Hambrecht and Quist president William R.
Hambrecht and three other Hambrecht and Quist representatives
have been named to the Visual board, with Robert M. Morrill,
managing partner of the Boston office of Hambrecht's Hambrecht
and Quist Venture Partners unit named chairman.  Clifford G.
Zimmer Jr. remains president and chief executive officer.
    Visual also said about nine mln dlrs of its debt has been
converted to equity.


.I 104
.C
acq
.W
******CPC INTERNATIONAL TO SELL STAKES IN ASIAN UNITS FOR 340.
MLN DLRS TO AJINOMOTO   

.I 105
.C
earn
.W
CAREPLUS INC <CPLS> 4TH QTR NET.
    MIAMI, April 1 -
    Shr loss nil vs profit nil
    Net loss 17,000 vs profit 31,000
    Revs 5,429,000 up 27 pct
    Year
    Shr profit four cts vs profit five cts
    Net profit 523,000 vs profit 421,000
    Revs 18.3 mln vs 11.6 mln
    Avg shrs 15.2 mln vs 8,941,000
    NOTE: Year net includes tax credits of 131,000 dlrs vs
194,000 dlrs.
    1986 net both periods includes charge 264,000 dlrs from
settlement of overtime wage dispute and addition to provision
for uncollectible accounts.


.I 106
.C
earn
.W
JOHN ADAMS LIFE CORP <JALC> 4TH QTR LOSS.
    LOS ANGELES, April 1 -
    Oper shr loss 24 cts vs profit 24 cts
    Oper net loss 716,000 vs profit 729,000
    Revs 3,673,000 vs 7,826,000
    Avg shrs 2,930,000 vs 2,930,000
    Year
    Oper shr profit nil vs profit 1.31 dlrs
    Oper net profit 10,000 vs profit 3,200,000
    Revs 12.9 mln vs 26.3 mln
    Avg shrs 2,930,000 vs 2,454,521
    NOTE: Net excludes realized investment gains of 2,000 dlrs
vs 13,000 dlrs quarter and 104,000 dlrs vs 6,000 dlrs year.
    1985 net both periods excludes 57,000 dlr extraordinary
gain.


.I 107
.C
earn
.W
TEMPO ENTERPRISES INC <TPO> YEAR NET.
    TULSA, April 1 -
    Shr 40 cts vs 36 cts
    Net 2,309,000 vs 2,076,000
    Revs 28.2 mln vs 30.4 mln


.I 108
.C
heat;gas;
.W
SWEDEN RAISES FUEL TAXES TO FUND DEFENCE SPENDING.
    STOCKHOLM, April 1 - Sweden announced tax increases on
petrol and heating oil from July 1, 1987 to help finance a 1.7
pct rise in defence spending over the next five years.
    A Finance Ministry statement said the increase should boost
the price of petrol by 0.13 crowns to an average of 4.21 crowns
per litre while light-grade heating oil would go up by 30
crowns per cubic metre to an average of 1,665 crowns.
    It said oil companies should absorb part of the tax rise
internally and not pass it on to consumers as compensation for
a reduction in the stocks that the industry is required to keep
for Sweden's national petroleum reserve.


.I 110
.C
gnp;coffee;bop;
.W
KENYAN MINISTER FORECASTS ECONOMIC EXPANSION.
    NAIROBI, April 1 - Kenya's economy will continue to expand
this year and the government will do more to encourage
investment by foreign firms and the local private sector,
Planning Minister Robert Ouko said.
    He told a news conference that the government would soon
create a special bureau to expedite processing of investment
applications by local and foreign investors.
    Praising the role of multinational companies and local
entrepreneurs in Kenya's economy, the minister promised to
maintain a close working contact with the private sector.
    The economy grew by 5.3 pct last year, up from 4.1 pct in
1985, Ouko said.
    This was owing to high prices for the country's coffee
exports, low oil prices, low inflation and rising real incomes,
he added.
    "Despite rising petroleum prices and falling coffee prices,
Kenya's economy is still expected to improve in 1987," the
planning minister said.
    "High aggregate demand arising from low inflation, trade
liberalisation and disciplined financial management are
expected to increase output in the manufacturing sector," he
said.
    Agriculture would expand significantly if favourable
weather continued and farmers responded to producer price rises
announced in February, the minister added.
    Kenyan farmers are anxiously awaiting the arrival of the
long rainy season, which is due to start about now.
    Ouko said the production of Kenya's main cash crops
increased during the second half of last year.
    Coffee deliveries to the state-run Coffee Board of Kenya
rose 17 pct and tea deliveries rose four pct during the period,
he said.
    Ouko paid tribute to the private sector for its
contribution to the economy and promised to improve government
cooperation with businessmen by maintaining regular contact
with them.
    "I wish to pay tribute to the private sector for its
contribution to the economy in 1986 and challenge it to
maintain the same spirit this year ... The manufacturing sector
grew by an estimated 5.8 pct in 1986, in line with the same
period the previous year," he said.
    Ouko said the "one stop" bureau was intended to stimulate
investment and cut the time and bureacracy currently involved
in processing applications.
    The planning minister presented a review of the Kenyan
economy during the second half of 1986 which showed inflation
falling to 4.3 pct from 10.2 a year earlier.
    This was owing to higher agricultural production and the
Kenyan shilling's relative strength against other major
currencies, the report said.
    The average exchange rate was 16.23 shillings per U.S. Dlr
last year, a fall of only 1.2 pct from 16.432 in 1985. The half
yearly report said exports increased about 30 pct in
July-December 1986, while imports rose by only six pct during
the period.
    This gave Kenya an overall balance of payments surplus of
780 mln Kenya shillings (48 mln dlrs) during the period,
compared with a 1.4 billion shilling (87 mln dlr) deficit in
the second half of 1985, it said.


.I 111
.C
earn
.W
PEOPLES BAN CORP <PEOP> SEES 1ST QUARTER NET UP.
    SEATTLE, April 1 - Peoples Ban Corp said it expects to
report first quarter earnings of over six mln dlrs, including a
gain of 1,600,000 dlrs from the settlement of a dispute with
the Internal Revenue Service and the sale of four banking
offices in Vancouver, Wash.
    The company said it expects to report "normal" earnings for
the rest ofd the year of 4,500,000 to five mln dlrs per
quarter.
    Peoples earned 105,000 dlrs in last year's first quarter
and in all of 1986 lost 1,768,000 dlrs.


.I 112
.C
earn
.W
MAXXAM GROUP INC <MXM> 4TH QTR LOSS.
    NEW YORK, April 1 -
    Shr loss 1.61 dlrs vs loss 47 cts
    Net loss 19.2 mln vs loss 5,716,000
    Revs 46.4 mln vs 11.0 mln
    Year
    Shr loss 2.01 dlrs vs loss 29 cts
    Net loss 24.5 mln vs loss 3,548,000
    Revs 150.2 mln vs 24.4 mln
    NOTE: 1985 net includes tax credits of 7,336,000 dlrs in
quarter and 10.2 mln dlrs in year.
    Results include 64.7 pct stake in Pacific Lumber Co from
December 1985 through February 1987 and 100 pct thereafter.


.I 113
.C
oilseed;ship;wheat;grain;barley;corn;rapeseed;
.W
FRENCH CEREAL EXPORTS THROUGH ROUEN UP IN MARCH.
    PARIS, April 1 - French cereals exports through Rouen port
rose to 751,563 tonnes between March 1 and March 25 from
603,413 tonnes in the same 1986 period, freight sources said.
    The Soviet Union took 263,051 tonnes of wheat and barley,
Saudi Arabia 90,944 tonnes barley, China 87,259 wheat, Algeria
64,896 wheat, Bangladesh 30,000 wheat, Morocco 27,500 maize,
Greece 26,700 wheat and barley, Spain 25,124 wheat, Poland
24,683 wheat, Brazil 24,082 wheat, Italy 21,659 wheat, Cyprus
20,700 wheat and maize, Israel 16,500 maize and the U.K. 8,797
tonnes wheat.
    Six ships are loading 120,000 tonnes of wheat, the sources
said. They include 30,000 tonnes for China, 31,000 for the
Soviet Union, 25,000 for Turkey, and 35,000 for Italy. Another
ship is loading 17,000 tonnes of colza for the Soviet Union.
    Another 12 ships should arrive to load 344,000 tonnes of
cereals by the end of the week. Six are to load 186,000 tonnes
of wheat for the Soviet Union. Two will load 60,000 tonnes of
barley for Saudi Arabia, one 28,000 tonnes of wheat for China,
two 25,000 tonnes of wheat each for Algeria and Turkey and one
20,000 tonnes of wheat for Italy. Another is expected to load
20,000 tonnes of colza for the Soviet Union.
    Flour exports through Rouen rose to 23,457 tonnes in the 25
day period from 5,500 in the equivalent 1986 period, the
sources said.
    Sudan took 19,327 tonnes and west coast Africa 4,130.
    Four ships are currently loading 32,000 tonnes, including
24,000 for Egypt, 6,000 for Tanzania and 2,000 for Mauritania.
    A ship is expected later this week to load 12,000 tonnes
for China.


.I 114
.C
veg-oil;wheat;grain;
.W
FAO APPROVES EMERGENCY FOOD AID FOR ETHIOPIA.
    ROME, April 1 - The United Nations Food and Agriculture
Organization, FAO, said it approved emergency food aid worth
more than 14.3 mln dlrs for drought victims in Ethiopia.
    The aid will include 30,000 tonnes of wheat and 1,200
tonnes of vegetable oil for farmers in the Wollo and Illubabor
regions.
    FAO said it has also approved more than 1.4 mln dlrs of
food aid for 8,000 families in Sri Lanka. In addition, 583,225
dlrs of aid will be made available to Malawi to feed 96,700
people displaced from Mozambique and a further 340,200 dlrs for
cyclone victims in Vanuatu in the South Pacific.


.I 116
.C
acq
.W
SOSNOFF ENDS PRATT <PRAT>/SOUTHMARK <SM> DEAL.
    NEW YORK, April 1 - Investor Martin T. Sosnoff said
Southmark Corp and affiliate Pratt Hotels Corp have ended talks
with his MTS Acquisition Corp on a possible joint venture for
the acquisition of Caesars World Inc.
    Sosnoff said the talks had not been actively pursued since
they were announced March 20, but it had been agreed that
unless the discussions were formally terminated, Pratt and
Southmark would not initiate a competing tender offer for
Caesars World or take any other action that would hamper
Sosnoff's current offer to acquire all Caesars shares he does
not now own for 28 dlrs each.
    Sosnoff said his 28 dlr per share bid for Caesars, which is
scheduled to expire May 15, still stands, and he remains
receptive to negotiating a transaction to buy Caesars on
friendly terms.
    Pratt recently made an apparently unsuccessful bid to
acquire control of Resorts International Inc <RTB>, seeming to
lose out to Donald Trump.


.I 119
.C
acq
.W
CPC INTERNATIONAL <CPC> TO SELL ASIAN STAKES.
    ENGLEWOOD CLIFFS, N.J., April 1 - CPC International Inc
said said it has agreed in principle to sell interests in its
grocery products operations in Hong Kong, Malaysia, the
Philippines, Singapore, Taiwan and Thailand to <Ajinomoto Co
Inc> of Japan for 340 mln dlrs.
    The company said the move will reduce Asian overhead and a
substantial part of the proceeds will be used to reduce debt.
    It said as part of the agreement, its current direct
investment in its existing non-consolidated joint venture with
Ajinomoto will be converted into a cooperative arrangement for
the long-term utilization of technology and trademarks.
    The company said the change in the Japanese arrangement
will give Ajinomoto full equity ownership while leaving CPC a
continuing earnings stream and cash flow.
    The transactions are subject to definitive agreements and
government approvals.
    CPC said not included in the 340 mln dlr consideration are
proceeds from the sale of some smaller Asian investments,
including a 51 pct equity interest in an oat-based food venture
to an Australian partner.
    The company said the actions being taken under its
restructuring program, including the sale of its European corn
wet milling business and other assets, overhead reductions and
other expense items and the Asian transactions, will have a
one-time positive effect on 1987 earnings.
    CPC said "Although the extent cannot yet be determined, the
company expects that 1987 earnings per share will increase by
substantially more than the previously estimated 20 pct
increase over 1986."  In 1986 CPC earned 2.30 dlrs per share.


.I 120
.C
acq
.W
ENERGY DEVELOPMENT <EDP> COMPLETES MAY <MEP> BUY.
    LOS ANGELES, April 1 - Energy Development Partners Ltd said
it has completed the acquisition of May Energy Partners Ltd for
1,817,697 depositary units following approval yesterday by May
Energy unitholders.
    Energy Development said May Petroleum Inc <MAYP>, general
partner of May Energy, will distribute about 35 Energy
Development units for each 100 May Energy Partners units to
holders of 100 May Energy Partnners units or more and cash to
others.
    Energy Development said the transaction increases its units
outstanding to 12.6 mln and raises total proved reserves as of
the end of 1986 27 pct.  Angeles Corp <ANG> is general partner
of Energy Development.


.I 121
.C
sugar
.W
U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES.
    LONDON, April 1 - A total 102,350 tonnes of current series
white sugar received export rebates of a maximum 46.864
European Currency Units (Ecus) per 100 kilos at today's
European Community (EC) tender, the U.K. Intervention Board
said.
    Out of this, traders in France received 31,000 tonnes, in
West Germany 21,000, in Belgium 19,050, in the U.K. 15,800, in
Denmark 8,500, in the Netherlands 6,000 and in Spain 1,000
tonnes, it added.
    Earlier today, London traders had expected the subsidy for
the current season whites campaign for licences to end-Sep to
be around 46.80 Ecus per 100 kilos while French traders had put
the rebate at around 46.40 Ecus.
    Traders here had also forecast today's total authorised
sugar tonnage export awards up to 100,000 tonnes versus 59,000
last week when the restitution was 45.678 Ecus.
    Total export authorisations for the 1985/86 campaign (42
 weeks) now stand at 2,076,620 tonnes.


.I 122
.C
cpi
.W
TURKISH INFLATION INCREASES IN MARCH.
    ANKARA, April 1 - Inflation in Turkey was 3.7 pct in March
compared with 1.7 pct in February and 1.3 pct in March 1986,
the State Statistics Institute said.
    The annual rate rose to 34.7 pct in March compared with
31.7 pct in February and 34.2 pct in March 1986. The
government's target is to reduce inflation this year to an
annual 20 pct.
    The consumer price index, base 1978/79, was 1,957.3
compared with 1,886.8 in February and 1,452.7 in March, 1986.


.I 123
.C
acq
.W
SCHERING-PLOUGH <SGP> MULLS DR. SCHOLL'S SALE.
    MADISON, N.J., April 1 - Schering-Plough corp said it is
considering the sale of its Dr. Scholl's businesses in Europe,
Latin America and the Far East, which had sales of about 150
mln dlrs in 1986.
    The company said the transaction is not expected to have a
material impact on earnings.  It said it has engaged Merrill
Lynch and Co Inc <MER> to assist in the sale process.
    Schering said it will retain Dr. Scholl's businesses in the
U.S., Canada and Puerto Rico, which had sales of about 135 mln
dlrs last year.


.I 124
.C
earn
.W
FAMILY DOLLAR STORES INC <FDO> 2ND QTR FEB 28.
    MATTHEWS, N.C., April 1 -
    Shr 28 cts vs 31 cts
    Net 8,117,095 vs 8,954,904
    Sales 146.7 mln vs 133.0 mln
    Avg shares 29.0 mln vs 28.9 mln
    First half
    Shr 48 cts vs 53 cts
    Net 13.8 mln vs 15.2 mln
    Sales 273.0 mln vs 242.1 mln
    Avg shrs 29.0 mln vs 28.9 mln


.I 126
.C
earn
.W
MCO HOLDINGS INC <MCO> 4TH QTR LOSS.
    LOS ANGELES, April 1 -
    Oper shr loss 2.27 dlrs vs loss 1.62 dlrs
    Oper net loss 12.7 mln vs loss 12.1 mln
    Revs 60.0 mln vs 26.2 mln
    Year
    Oper shr loss 5.16 dlrs vs loss 1.56 dlrs
    dOper net loss 29.0 mln vs loss 12.4 mln
    Revs 139.3 mln vs 110.0 mln
    NOTE: 1985 operating losses exclude profits of 19.5 mln
dlrs, or 2.64 dlrs a share, in quarter and 20.6 mln dlrs, or
2.74 dlrs a share, in year from discontinued operations
    1985 loss in both periods includes pre-tax charge of 16.9
mln dlrs on write down of oil properties.
    1986 year loss includes pre-tax charge of 23.0 mln dlrs for
write down of oil and gas properties.


.I 128
.C
interest
.W
BUNDESBANK WILL NOT HOLD PRESS CONFERENCE TOMORROW.
    FRANKFURT, April 1 - The Bundesbank will not hold a press
conference after its regular fortnightly council meeting
tomorrow, a spokesman said in answer to enquiries.
    Bundesbank vice-president Helmut Schlesinger will chair the
meeting, as president Karl Otto Poehl has a private engagement.
    The next meeting is scheduled for April 16.


.I 131
.C
interest
.W
******MANUFACTURERS HANOVER RAISES PRIME RATE TO 7-3/4 PCT FROM.
7-1/2, EFFECTIVE TODAY

.I 132
.C
earn
.W
RANSBURG CORP <RBG> 1ST QTR FEB 28 LOSS.
    INDIANAPOLIS, April 1 -
    Oper shr loss 19 cts vs profit one ct
    Oper net loss 1,495,000 vs profit 50,000
    Revs 52.3 mln vs 48.9 mln
    NOTE: Earnings exclude gains from utilization of tax loss
carryforwards of 82,000 dlrs, or one ct a share vs 300,000
dlrs, or three cts a share


.I 133
.C
acq
.W
******CONRAC CORP REJECTS MARK IV INDUSTRIES TENDER OFFER,.
EXPLORES ALTERNATIVES

.I 135
.C
interest
.W
MANUFACTURERS HANOVER <MHC> RAISES PRIME RATE.
    NEW YORK, April 1 - Manufacturers Hanover Trust Co became
the third major U.S. bank to increase its prime rate to 7-3/4
pct from 7-1/2, matching a move initiated yesterday by Citibank
and Chase Manhattan.
    The bank, the main subsidiary of Manufacturers Hanover
Corp, said the new rate is effective today.


.I 136
.C
earn
.W
SNYDER OIL PARTNERS LP <SOI> SETS QUARTERLY.
    FORT WORTH, Texas, April 1 -
    Qtly div 30 cts vs 30 cts prior
    Pay April 30
    Record April 15


.I 137
.C
acq
.W
MEDAR <MDXR> ACQUIRES OWENS-ILLINOIS <OI> UNIT.
    FARMINGTON HILLS, MICH., April 1 - Medar Inc said it
acquired Automatic Inspection Devices Inc, a subsidiary of
Owens-Illinois Inc, Toledo, Ohio, through an exchange of stock
for 80 pct of the company.
    Automatic Designs and manufactures a line of machine vision
systems for the packaging, pharmaceutical, electronics and
consumer goods industries.


.I 138
.C
acq
.W
ALLIS-CHALMERS <AH> ESTIMATES PROCEEDS OF SALE.
    MILWAUKEE, WIS., April 1 - Allis-Chalmers Corp said it
expects cash proceeds from the proposed sale of its solids
processing equipment and minerals systems businesses to exceed
90 mln dlrs, with no material gain or loss anticipated from the
planned sale.
    Closing of the sale to Boliden AB of Sweden would be part
of the overall restructure of Allis-Chalmers, which was
announced on March Four, the company said.
    Allis-Chalmers said the business entities included in the
transaction had total sales of about 250 mln dlrs in 1986, with
total employment of about 4,300.
    The solids processing equipment business involves
manufacture of crushing and related equipment for mining. It
consists of operations in Sweden, Australia, Brazil, France,
Great Britain, Spain and Appleton, Wis.
    The minerals systems business has operations in West Allis,
Wis., and Lachine, Quebec, Canada.


.I 139
.C
oilseed;ship;grain;
.W
ARGENTINE GRAIN SHIPPING SITUATION.
    BUENOS AIRES, April 1 - One grain vessel was awaiting berth
at Bahia Blanca, four at Buenos Aires and five at Rosario, on
March 31, National Grain Board figures show.
    The situation at these ports was as follows, giving the
number of ships loading, awaiting berth and expected
respectively.
    Bahia Blanca - 4, 1, 1
    Buenos Aires - 1, 4, 9
    Rosario -      6, 5, 7
    The tonnage of grain and oilseeds to be loaded onto ships
loading, awaiting berth and expected at each port was as
follows.
    Bahia Blanca - Wheat 161,360.
    Buenos Aires - Maize 104,304, Wheat 14,330.
    Rosario - Wheat 50,400, maize 157,040, subproducts 50,100,
sunflowerseed 1,000 and millet 3,100.


.I 141
.C
interest
.W
IRVING TRUST <V> RAISES PRIME RATE.
    NEW YORK, April 1 - Irving Trust Co said it is raising its
prime rate to 7-3/4 pct from 7-1/2, effective immediately.
    It becomes the fourth U.S. bank to raise the rate,
following Citibank, Chase Manhattan and Manufacturers Hanover
Trust.


.I 142
.C
hog;livestock;
.W
HOG REPORT SHOWS MORE HOGS ON FARMS.
    By Jerry Bieszk, Reuters
    Chicago, April 1 - The USDA quarterly hogs and pig report
yesterday showed more hogs on U.S. farms compared to last year
as profitability resulting from low grain prices encouraged
producers to step up production, analysts said.
    Most analysts seemed to agree with Chicago Mercantile
Exchange floor traders that the report will be viewed as
bearish to pork futures and futures prices may open sharply
lower today. Some traders and analysts expect limit declines in
nearby contracts, with spillover selling likely in cattle.
    University of Missouri agronomist Glen Grimes said,"The
report shows that hog producers have responded to a very
desirable feeding ratio that they enjoyed for the past 10
months."
    Shearson Lehman analyst Chuck Levitt said hog futures
prices are above producers' break even points. Even if futures
fell the daily limit of 1.50 cents today, producers could still
lock in a profit, which increases the likelihood of heavy
selling pressure today.
    "We have not had a period of profitability of this
magnitude since last summer," Levitt said. "In fact, hog
operations on many mixed livestock/grain enterprises have been
so profitable that it actually enabled some farmers to get back
on their feet and refinance their loans just based on the hog
operation alone."
    Levitt said the weight breakdown in the report also was
negative, in that some lead time was anticipated before the
slaughter increased from the previous year.
    We expected farmers to increase hog operations, but we
didn't expect this degree of expansion to show up in a 10-state
spring report, Levitt added.
    High hog corn ratios (the number of bushels of corn that
could be bought for 100 lbs of hog) and the resulting increased
profits, encouraged farmers and confinement operations to
increase production starting late last year.
    Analysts also noted that part of the increase in the hog
herd resulted from a revision of the December report and
without the revision, the March report might have been very
close to average expectations.
    Robin Fuller of Agri Analysis said the USDA made a major
upward revision of 105,000 head in the size of the breeding
herd in the December 1 report. So the December report was more
bearish than initially indicated.
    But Fuller, as well as other analysts, expected the report
to be less negative on deferred futures contracts. Distant
contracts are already at a sharp discount to cash because
traders anticipated high farrowing intentions, she noted.
    Discounts in the October and December contracts take into
consideration a six to seven pct increase in March/May
farrowing intentions, which was borne out in the March 1
report, Fuller said.
    Grimes said, "As far as the distant months are concerned,
if our first quarter pig crop is up only six pct and under 60
lb inventories actually up only five pct, it would take a
tremendous discount in price for each percent increase for us
to push down to the prices that the current futures show for
the July and August period."
    Jerry Abbenhaus, analyst for AGE Clearing noted that
distant futures prices are already 15 to 20 dlrs lower than
they were last summer.
    "If cash hogs at the 7-markets last year averaged 61 dlrs
during July, that doesn't mean hogs have to be 15 dlrs cheaper
this year because we have six pct more numbers," he said.


.I 143
.C
acq
.W
CONRAC <CAX> REJECTS MARK IV <IV> OFFER.
    STAMFORD, Conn., April 1 - Conrac Corp said its board has
rejected MArk IV Industries Inc's tender offer for all Conract
shares at 25 dlrs each, and no Conract director of officer
plans to tender any shares.
    The company said financial advisor <Goldman, Sachs and Co>
determined the price to be inadequate.
    It said its board has instructed management to explore and
develop with financial and legal advisors alternative courses
of action to maximize shareholder values.


.I 144
.C
acq
.W
TAFT <TFB> HAD NOT COMPLETED TV STATION SALE.
    CINCINNATI, Ohio, April 1 - Taft Broadcasting Co said the
sale of its independent television stations to TVX Broadcast
Group, which had been set for yesterday, did not occur.
    TVX and its investment bankers, Salomon Inc's <SB> Salomon
Brothers, advised Taft the closing would not be consumated as
scheduled, the company said.
    TVX and Salomon also advised Taft they hope to be able to
close in near future, the company said, adding it is prepared
to close at any time.
    A Taft spokeswoman referred all questions to TVX and
Salomon.
    Taft agreed in November to sell the stations in
Philadelphia, Washington, Miami, Fort Worth-Dallas and Houston
TVX Broadcast for 240 mln dlrs.
    At the time, Taft said the transaction would result in an
after tax charge of 45 to 50 mln dlrs.


.I 146
.C
earn;iron-steel;
.W
THYSSEN SEES UP TO 20 PCT LOWER SALES IN 1986/87.
    HANOVER, April 1 - Thyssen AG <THYH.F> expects a fall of
between 15 and 20 pct in consolidated turnover in 1986/87,
chief executive Dieter Spethmann said.
    He told journalists the exact decline would depend on
dollar developments. The Thyssen group did over 50 pct of its
business outside West Germany.
    Spethmann made no comment on 1986/87 group earnings. World
group net profit fell to 370.1 mln marks in the year ended
September 1986 from 472.4 mln a year earlier on group sales
which fell to 40.00 billion marks from a previous 44.32
billion.
    Last week Spethmann told the annual meeting Thyssen
expected to post a good profit in 1986/87 despite expected
losses in the mass steel-making operations this year.
    Spethmann said engineering turnover would not be lower this
year, but lower steel prices would result in a drop in steel
turnover and sales volume. This would also affect Thyssen's
trading operations, he said.
    Spethmann also categorically denied a magazine article
published this week which spoke of a dispute between him and
Heinz Kriwet, management board chairman of Thyssen Stahl AG,
over planned job cuts in steel plants in the Ruhr area.


.I 148
.C
acq
.W
CYCLOPS <CYL> NAMES DIXONS OFFICIALS TO BOARD.
    PITTSBURGH, April 1 - Cyclops corp said it has
reconstituted its board to include three <Dixons Group PLC>
executives following Dixons' acquisition of 83 pct of Cyclops'
4,061,000 shares in a 95 dlr per share tender offer.
    Cyclops said remaining on the six-member board are chairman
and chief executive W.H. Knoell, president and chief operating
officer James F. Will and senior vice president William D.
Dickey.


.I 151
.C
acq
.W
SOUTHMARK <SM> COMPLETES ACQUISITION.
    DALLAS, April 1 - Southmark Corp said it has completed the
purchase of Georgia International Life Insurance Co from
Capital Holding Corp <CPH> for cash and Southmark securities
worth over 85 mln dlrs.


.I 153
.C
earn
.W
VALHI <VHI> REPORTS PRO-FORMA EARNINGS.
    DALLAS, April 1 - Valhi Inc, formed by the March 10 merger
of Amalgamated Sugar Co into LLC Corp, said it had unaudited
pro-forma earnings of 72 mln dlrs, or 61 cts a share, for the
six months ended December 31.
    Valhi said these results were prepared as if the merger had
occurred July 1, 1986, and on substantially the same basis as
the pro-forma financial information in LLC's and Amalgamated's
joint proxy statement dated February 10.
    Valhi said it has about 117 mln common shares outstanding
with about 85 pct held by <Contran Corp>.


.I 158
.C
earn
.W
ACME-CLEVELAND CORP <AMT> SETS QUARTERLY.
    CLEVELAND, April 1 -
    Qtly div 10 cts vs 10 cts prior
    Pay May 13
    Record April 29


.I 160
.C
veg-oil
.W
U.S. OIL/LARD STATISTICS.
    WASHINGTON, April 1 - U.S. Census Bureau figures released
here showed factory and warehouse stocks on Feb 28 included the
following, with comparisons, in mln lbs --
          02/28/87    01/31/87  02/28/86
 Soybean Oils --
   Crude  1,663.3-x  1,542.6      893.7
 Refined    300.5-x    294.7-r    287.4
   Total  1,963.8-x  1,837.3-r  1,181.1
Cotton Oils --
   Crude     65.7       55.8-r     64.5
 Refined    122.3      109.6-r    119.6
   Total    188.0      165.4-r    184.1
 X-Revised from preliminary data released in the bureau's
oilseeds report of March 23. R-Revised.

     Factory and Warehouse Stocks, continued -
         02/28/87  01/31/87   02/28/86
 Corn Oils --
     Crude   32.5    32.3-r   44.2
   Refined   65.8    54.4-r   39.9
     Total   98.3    86.7-r   84.1
      Lard   31.4    31.5-r   36.4
  R-Revised.


.I 161
.C
earn
.W
VMS STRATEGIC LAND TRUST <VLANS> SETS PAYOUT.
    CHICAGO, April 1 - VMS Strategic Land Trust declared an
initial dividend of 30 cts a share payable May 15 to
shareholders of record April 20.
    The dividend represents a 12 pct annual return based on the
company's original offering price in December of 10 dlrs a
share. The return is guaranteed through December 31, 1988, the
company said.
    The trust invests in short term junior preconstruction
mortgage loans and has total principal amount of investments of
approximately 105.7 mln dlrs.


.I 162
.C
interest
.W
CHEMICAL <CHL> RAISES PRIME RATE TO 7-3/4 PCT.
    NEW YORK, April 1 - Chemical Bank, the main bank subsidiary
of Chemical New York Corp, said it is raising its prime lending
rate to 7-3/4 pct from 7-1/2 pct, effective immediately.


.I 163
.C
lead
.W
<COMINCO LTD> LOWERS PRICE OF LEAD METAL.
    VANCOUVER, British Columbia, April 1 - Cominco Ltd said its
Cominco metals division lowered the price for lead metal sold
in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per
pound.
   


.I 164
.C
oilseed;grain;corn;soybean;
.W
MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT.
    CHICAGO, April 1 - Cash grain dealers reported slow country
movement of corn and soybeans across the Midwest, with even
corn sales from PIK-and-roll activity seen earlier this week
drying up.
    Some dealers said the USDA may further adjust the posted
county price at the Gulf to take into account high barge
freight rates as a way to keep corn sales flowing, but added
the current plan probably will be given a few weeks to see if
it will work as hoped.
    Corn and soybean basis values continued to drop on the
Illinois and MidMississippi River due to the strong barge
freight rates. Toledo and Chicago elevators were finishing
loading the first corn boats of the new shipping season,
supporting spot basis values at those terminal points.

                  CORN             SOYBEANS
 TOLEDO         5 UND MAY UNC   1 UND MAY UNC
 CINCINNATI     1 UND MAY UNC   1 OVR MAY UP 2
 NEW HAVEN     12 UND MAY UNC   2 UND MAY DN 1
 N.E. INDIANA  10 UND MAY UNC   2 OVR MAY DN 1
 CHICAGO      1/2 OVR MAY UNC   5 UND MAY UNC
 SENECA       51/2 UND MAY DN 1 7 UND MAY UNC
 DAVENPORT 61/2UND MAY DN61/2 61/2UND MAY DN11/2
 CLINTON        5 UND MAY DN 3       UA
 CEDAR RAPIDS  11 UND MAY DN 3 13 UND MAY DN 2
                  HRW WHEAT
 TOLEDO  58 LB 35 OVR MAY UP 1
 CHICAGO 57 LB 25 OVR MAY UNC
 CINCINNATI DP 10 OVR MAY UNC
 NE INDIANA DP  8 OVR MAY UNC
 PIK CERTIFICATES - 103/104 PCT - UNC/ DN 2
 NC - NO COMPARISON  UA - UNAVAILABLE
 UNC - UNCHANGED DP - DELAYED PRICING



.I 166
.C
money-fx
.W
******FED BUYING ONE BILLION DLRS OF BILLS FOR CUSTOMER.
ACCOUNT, FED SAYS

.I 167
.C
oilseed;grain;corn;soybean;
.W
MIDWEST CASH GRAIN - SLOW COUNTRY MOVEMENT.
    CHICAGO, April 1 - Cash grain dealers reported slow country
movement of corn and soybeans across the Midwest, with even
corn sales from PIK-and-roll activity seen earlier this week
drying up.
    Some dealers said the USDA may further adjust the posted
county price at the Gulf to take into account high barge
freight rates as a way to keep corn sales flowing, but added
the current plan probably will be given a few weeks to see if
it will work as hoped.
    Corn and soybean basis values continued to drop on the
Illinois and MidMississippi River due to the strong barge
freight rates. Toledo and Chicago elevators were finishing
loading the first corn boats of the new shipping season,
supporting spot basis values at those terminal points.



.I 168
.C
interest
.W
MARINE MIDLAND <MMB> RAISES PRIME RATE.
    NEW YORK, April 1 - Marine Midland Banks Inc said it is
raising its prime lending rate to 7-3/4 pct from 7-1/2 pct,
effective immediately.


.I 169
.C
interest
.W
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 1 - The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
    MATURITY   NEW RATE  OLD RATE  MATURITY
   30-69 days  5.00 pct  5.00 pct   30-124 days
   70-88 days  5.92 pct  5.90 pct  125-150 days
  89-123 days  5.00 pct  5.00 pct  151-173 days
 124-150 days  5.93 pct  5.92 pct  174-182 days
 151-349 days  5.00 pct  5.00 pct  183-349 days
 350-360 days  5.98 pct  5.94 pct  350-360 days


.I 172
.C
dlr;money-fx;dmk;
.W
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES.
    ANKARA, April 1 - The Turkish Central Bank set a
lira/dollar rate for April 2 of 780.00/783.90 to the dollar,
down from the previous 777.00/780.89. The Bank also set a
lira/mark rate of 429.15/431.30 to the mark, up from the
previous 430.50/432.65.


.I 173
.C
copper
.W
ASARCO LOWERS COPPER PRICE 1.50 CTS TO 67 CTS.
    NEW YORK, April 1 - Asarco Inc said it is decreasing its
domestic delivered copper cathode price by 1.50 cents to 67.0
cents a lb, effective immediately.


.I 174
.C
money-fx
.W
FED BUYS ONE BILLION DLRS OF BILLS FOR CUSTOMER.
    NEW YORK, April 1 - The Federal Reserve is buying one
billion dlrs of Treasury bills for customer account for
delivery today, a spokesman for the bank said.
    Fed funds were trading at 6-3/16 pct at the time of the
purchase, which came several hours before the Fed normally
transacts business for its customers.
    Economists said the purchase was almost certainly related
to the investment of proceeds from recent central bank
intervention in the foreign exchanges.
    The Bank of Japan alone is estimated to have bought about
six billion dlrs in March in a bid to prop up the dollar.


.I 175
.C
earn
.W
******GEORGIA-PACIFIC TO HAVE 60 MLN DLR PRETAX GAIN FROM SALE.
OF GEORGIA GULF STAKE

.I 177
.C
gnp;coffee;
.W
KENYAN MINISTER FORECASTS ECONOMIC EXPANSION.
    NAIROBI, April 1 - Kenya's economy will continue to expand
this year and the government will do more to encourage
investment by foreign firms and the local private sector,
Planning Minister Robert Ouko said.
    He told a news conference that the government would soon
create a special bureau to expedite processing of investment
applications by local and foreign investors.
    Praising the role of multinational companies and local
entrepreneurs in Kenya's economy, the minister promised to
maintain a close working contact with the private sector.
    The economy grew by 5.3 pct last year, up from 4.1 pct in
1985, Ouko said. This was owing to high prices for the
country's coffee exports, low oil prices, low inflation and
rising real incomes, he added.
    "Despite rising petroleum prices and falling coffee prices,
Kenya's economy is still expected to improve in 1987," the
planning minister said.
    Agriculture would expand significantly if favourable
weather continued and farmers responded to producer price rises
announced in February, the minister added.
    Kenyan farmers are anxiously awaiting the arrival of the
long rainy season, which is due to start about now.
    Ouko said the production of Kenya's main cash crops
increased during the second half of last year.
    Coffee deliveries to the state-run Coffee Board of Kenya
rose 17 pct and tea deliveries rose four pct during the period,
he said.


.I 181
.C
veg-oil
.W
U.S. VEGETABLE OIL PRODUCTS OUTPUT IN FEBRUARY.
    WASHINGTON, April 1 - U.S. factories used 1,053.0 mln lbs
of various vegetable oils in the production of edible products
during February, the Census Bureau reported.
    That compared with a revised usage of 1,075.0 mln lbs in
January and 1,084.2 mln lbs in February, 1986.
    February production of selected products included the
following, with comparisons, in mln lbs --
                 Feb 87    Jan 87    Feb 86
     Baking or
   Frying Fats -- 355.5    387.6-r   427.4
 Soybean Salad and
   Cooking Oil -- 388.1    373.3-r   351.7
 R-Revised.

    Production, continued (in mln lbs --)
                   Feb 87    Jan 87   Feb 86
 Other Salad and
    Cooking Oils   111.2    111.4-r   114.3
       Margarine   218.8    216.9-r   214.4
       Glycerine --
           Crude    21.5     25.9      31.3
         Refined    23.5     23.6-r    25.4
     Fatty Acids   102.9    112.5-r   113.1
       Meat/Meal
         Tankage   410.2    458.2-r   446.2
 R-Revised.
REUTER^M

.I 182
.C
acq
.W
BEECHAM GROUP <BHAMY> TO SELL UNIT.
    GREENWICH, Conn., April 1 - Privately-held investment firm
<Dubin Clark and Co> said it has signed a definitive agreement
for an investment group it heads to acquire Roberts
Consolidated Industries from <Beecham Group PLC> for 45 mln
dlrs.
    Roberts makes and distributes accessories, adhesives and
tools used in carpet installation.
    Dubin Clark said its group includes Roberts management and
London investment company <J. Rothschild Holdings PLC>.  It
said Ronald J. Dubin will become vice chairman of Roberts and
J. Thomas Clark chairman.
REUTER^M

.I 185
.C
livestock
.W
U.S. TALLOW PRODUCTION AND STOCKS.
    WASHINGTON, April 1 - U.S. factory production of inedible
tallow and grease amounted to 421.5 mln lbs in February, vs a
revised 471.5 mln lbs the previous month and 419.2 mln lbs in
the year-ago period, the Census Bureau said.
    The bureau placed February factory production of edible
tallow at 96.9 mln lbs, vs a revised 111.4 mln lbs the previous
month and 122.7 mln lbs in February a year earlier.
    It estimated factory and warehouse stocks of inedible
tallow on February 28 at 410.7 mln lbs, vs a revised 351.6 mln
the previous month and 361.9 mln in February, 1986.
    End-Feb stocks of edible tallow amounted to 41.9 mln lbs,
vs a revised 40.1 mln lbs and 48.6 mln lbs in their respective
periods.
    Factory consumption of inedible tallow and grease in
February was assessed at 238.3 mln lbs, vs a revised 250.4 mln
lbs a month earlier and 220.5 mln lbs in the year-ago period.
    During February, factories used 65.3 mln lbs of edible
tallow, vs a revised 71.8 mln and 84.6 mln, respectively.
    Total factory production and consumption of tallow in the
1987 marketing season, which began Jan 1, vs the 1986 season,
were as follows, in mln lbs -- 
  Production -- 1987     1986
    Inedible    893.0    920.1
      Edible    208.3    274.7
 Consumption --
    Inedible    488.7    473.7
      Edible    137.1    176.4


.I 186
.C
lead
.W
COMINCO LTD CUTS LEAD PRICE IN CANADA.
    Vancouver, British Columbia, April 1 - Cominco Ltd said its
Cominco metals division lowered the price for lead metal sold
in Canada by 1/2 Canadian cts per pound to 34 Canadian cts per
pound.


.I 188
.C
interest
.W
MERCANTILE BANK N.A. <MTRC> RAISES PRIME RATE.
    ST. LOUIS, April 1 - Mercantile Bancorp said its Mercantile
Bank N.A. raised its prime rate to 7-3/4 pct from 7-1/2 pct,
effective immediately.


.I 189
.C
livestock
.W
U.S. LARD CONSUMPTION IN FEBRUARY.
    WASHINGTON, April 1 - U.S. factory usage of lard in the
production of both edible and inedible products during February
totaled 22.0 mln lbs, vs a revised 20.2 mln lbs in January,
according to Census Bureau figures.
    In the year-earlier period, usage, which includes
hydrogenated vegetable and animal fats and other oils in
process, amounted to 31.4 mln lbs.
    Usage in February comprised 16.6 mln lbs of edible products
and 5.4 mln lbs of inedible products.
    Total lard usage in the 1986/87 marketing season, which
began October 1, amounted to 125.2 mln lbs, vs 185.6 mln lbs in
the year-ago period.


.I 190
.C
acq
.W
AUTOSPA <LUBE> TO BUY CONTROL OF CARDIS <CDS>.
    NEW YORK, April 1 - Autospa Corp said it has signed an
agreement to purchase 2,400,000 shares of eight pct convertible
preferred stock of Cardis Corp -- representing voting control
-- for 15 mln dlrs.
    The company said the preferred purchase will be financed by
an investment group led by Autospa.
    It said it will also receive from Cardis five-year options
to buy 2,400,000 Cardis common shares at 6.25 to seven dlrs
each, depending on the time of exercise, and warrants to
purchase about 3,200,000 shares at 6.60 to 7.60 dlrs each.
    The company said the exercise of all options and warrants
by Autospa would result in a tital investment of 50 to 55 mln
dlrs.  Execution of a definitive agreement is expected by April
22, it said, subject to the completion of financing
arrangements, and closing is expected by May 15.


.I 192
.C
oilseed;grain;corn;soybean;sunseed;
.W
FRENCH FARMERS PLAN TO CUT MAIZE PLANTINGS.
    PARIS, April 1 - French farmers are planning to cut their
maize sowings by between 100,000 and 150,000 hectares this year
from the 1.87 mln ha harvested in 1986, the French Maize
Producers' Association, AGPM, said.
    It said its first estimate of planting intentions indicated
cuts of 15 to 20 pct in plantings in the northern region of
Picardy and the Paris Basin, which harvested 192,000 ha last
year.
    In the centre-west region of Poitou-Charentes, plantings
were estimated four to seven pct up on last year's harvested
244,000 ha.
    Planting intentions in the south-east ranged between nine
pct less and two pct more than last year's 125,000 ha. In the
south-west the AGPM said producers intended to plant a similar
area to last year's 671,100 harvested hectares, provided water
supplies are adequate in the Midi-Pyrenees region after the
last two years of drought.
    Meanwhile, the oilseed plant breeding association, AMSOL,
said sunflower plantings in France this year are indicated at
between 900,000 and 950,000 ha against 829,000 harvested last
year, while soya plantings are indicated at 80,000 ha against
last year's harvested 48,000.


.I 194
.C
earn
.W
WEATHERFORD INTERNATIONAL INC <WII> 4TH QTR LOSS.
    HOUSTON, April 1 -
    Shr loss 40 cts vs loss 1.30 dlrs
    Net loss 3,619,000 vs loss 11.3 mln
    Revs 24.1 mln vs 34.1 mln
    Year
    Shr loss 4.36 dlrs vs loss 2.09 dlrs
    Net loss 38.7 mln vs loss 16.8 mln
    Revs 104.6 mln vs 133.9 mln
              


.I 195
.C
earn
.W
PROGRESSIVE SAVINGS <PRSL> 4TH QTR LOSS.
    ALHAMBRA, Calif., April 1 -
    Shr loss 1.05 dlrs vs profit three cts
    Net loss 4,477,000 vs profit 107,818
    Revs 10.9 mln vs 13.8 mln
    Year
    Shr loss 79 cts vs profit three cts
    Net loss 3,364,058 vs profit 123,880
    Revs 50.9 mln vs 57.2 mln
    Note: Full name Progressive Savings and Loan Association.
    Current year figures include 5.1 mln dlr incrase to
reserves for estimated real estate and loan losses.


.I 196
.C
acq
.W
ALLIED SUPERMARKETS <ASU> FILES PROPOSED MERGER.
    DETROIT, April 1 - Allied Supermarkets Inc said it filed a
registration statement with the Securities and Exchange
Commission for a proposed merger with <The Vons Companies>, a
supermarket, combination store operator.
    Allied said the statement covers 140 mln dlrs of senior
subordinated discount debentures and 100 mln dlrs of
subordinated debentures, principal amounts, with a proposed
aggregate offering price of about 100 mln dlrs for each issue.
    Drexel Burnham Lambert Inc and Donaldson, Lufkin and
Jenrette Securities Inc are co-underwriters of both issues,
which Allied expects to offer in early June, Allied said.


.I 198
.C
cotton
.W
CERTIFICATED COTTON STOCKS.
    NEW YORK, April 1 - Certificated cotton stocks deliverable
on the New York Cotton Exchange No 2 cotton futures contract as
of March 31 were reported at 36,659 bales, unchanged from the
previous day's figure. There were no bales awaiting review and
985 bales awaiting decertification.


.I 200
.C
dlr;money-fx;dmk;stg;
.W
FINLAND REVISES CURRENCY BASKET.
    HELSINKI, April 1 - The Bank of Finland said it has revised
the weightings in its currency basket with effect from today.
Weightings  match the respective country's share in Finland's
foreign trade.
    Weights in percentages compared with former weights.
    Dollar  9.0 (8.8)
    Sterling 14.3 (13.8)
    Swedish crown 20.4 (20.6)
    Norwegian crown 5.2 (5.2)
    Danish crown 5.2 (5.3)
    German mark 19.3 (19.6)
REUTER^M

.I 204
.C
earn
.W
JOHN O. BUTLER CO <BUTC> 2ND QTR FEB 28 NET.
    CHICAGO, April 1 -
    Shr 19 cts vs 18 cts
    Net 1,230,041 vs 1,153,280
    Sales 10,909,729 vs 9,675,355
    Six mths
    Shr 31 cts vs 29 cts
    Net 2,019,930 vs 1,857,357
    Sales 21.0 mln vs 17.8 mln


.I 205
.C
earn
.W
<GUILLEVIN INTERNATIONAL INC> YEAR JAN 31 NET.
    Montreal, April 1 -
    Shr 51 cts vs 36 cts
    Net 2,543,285 vs 1,686,559
    Sales 153.2 mln vs 120.7 mln


.I 206
.C
earn
.W
COSMO COMMUNICATIONS CORP <CSMO> YEAR LOSS.
    MIAMI, April 1 -
    Shr loss one ct vs loss 2.16 dlrs
    Net loss 30,000 vs loss 12.4 mln
    Revs 27.4 mln vs 38.3 mln


.I 207
.C
earn
.W
LINEAR <LNER> SEES LOWER COMPARABLE 4TH QTR NET.
    TULSA, Okla., April 1,  - Linear Films Inc said its fourth
quarter earnings for the period ended March 31, will be lower
than the 1,235,000 dlrs or 19 cts a share reported in the
year-ago quarter on sales of 11.8 mln dlrs.
    The company attributed the lower earnings to narrowing
profit margins on stretch film.
    Linear also said it is increasing its stretch film prices
by six pct effective April 15.


.I 208
.C
earn
.W
STAODYNAMICS INC <SDYN> 4TH QTR NET.
    LONGMONT, Colo., April 1 -
    Shr three cts vs six cts
    Net 54,965 vs 106,147
    Revs 2,124,983 vs 1,915,928
    Avg shrs 2,206,017 vs 1,878,438
    Year
    Shr 14 cts vs eight cts
    Net 302,388 vs 157,690
    Revs 7,952,360 vs 7,495,936
    Avg shrs 2,139,991 vs 2,051,178


.I 209
.C
acq
.W
1ST SOURCE <SRCE> COMPLETES MERGER.
    SOUTH BEND, Ind., April 1 - 1st Source Bank said it
completed its merger with <Community State Bank> of North
Liberty, Ind.
    The bank said Community State Bank's shareholders approved
the merger at a meeting last Saturday, while Monday the
directors of 1st Source also approved the move.
    The merger would add Community Bank's 20 mln dlrs in assets
to 1st Source's more than one billion dlrs in assets, 1st
Source said.


.I 210
.C
acq
.W
FIRST NATIONAL BANK CORP TO BUY BRANCH.
    MOUNT CLEMENS, MICH., April 1 - First National Bank Corp,
the newly formed parent of First National Bank in Mount
Clemens, Mich., and Bankers Fund Life Insurance Co, said it
reached an agreement to buy a branch in Clinton Township from a
nonrelated financial institution.
    It said the acquisition brings to 10 the number of bank
branches in Macomb County. Terms were not disclosed.
    Separately, the newly formed holding company also said it
named Arie Guldemond as chairman and Harold Allmacher as
president and chief executive officer.


.I 211
.C
earn
.W
GEORGIA PACIFIC <GP> SEES GAIN FROM SALE.
    ATLANTA, April 1 - Georgia-Pacific Corp said its second
quarter results will include a gain of 60 mln dlrs pre-tax, or
34 cts per share after-tax, from the sale of its interest in
<Georgia Gulf Corp>.
    The company said it is selling warrants for about 1.8 mln
shares of Georgia Gulf common stock to Goldman Sachs and Co in
connection with the 4.8 mln share offering of Georgia Gulf.
    It said it received the warrants when it agreed to sell its
commmodity chemical operations to Georgia Gulf in 1984.


.I 212
.C
oilseed;soybean;
.W
U.S., ARGENTINA SETTLE SOYPRODUCT CASE - YEUTTER.
    WASHINGTON, April 1 - U.S. Trade Representative Clayton
Yeutter said the United States and Argentina have settled a 
case brought by the U.S. soybean crushing industry alleging
unfair subsidies to Argentina's crushing industry.
    Speaking to an Agribusiness Education forum here late
yesterday, Yeutter said the case was resolved at a meeting with
Argentine Agriculture Secretary Ernesto Figuerras during a
trade ministers' meeting in New Zealand last week.
    Under a verbal understanding between the two ministers,
Argentina will soon abolish export taxes on soybeans and
products, U.S. and Argentine officials said.
    The U.S. case brought by the U.S. National Soybean
Processors Association alleged Argentina, through differential
export taxes, implicitly subsidized domestic soybean crushers.
    The U.S. crushing industry, in its complaint under Section
301 of trade law, said higher Argentine export taxes on
soybeans than on products encourage the export of products and
represented an unfair trade practice.
    Yeutter told Figuerras that all agencies of the U.S.
government supported the U.S. complaint and unless Argentina
took steps to eliminate the taxes, the United States would
consider taking further action in the case, U.S. and Argentine
officials said.
    An Argentine official here said no timetable was given for
removal of the Argentine export taxes.


.I 217
.C
interest
.W
CONTINENTAL ILLINOIS <CIL> RAISES PRIME RATE.
    CHICAGO, April 1 - Continental Illinois Corp said it has
raised its prime rate to 7-3/4 from 7-1/2.


.I 218
.C
earn
.W
THOUSAND TRAILS INC <TRLS> YEAR LOSS.
    BELLEVUE, Wash., April 1 -
    Shr loss 4.87 dlrs vs profit 16 cts
    Net loss 50,422,000 vs profit 1,788,000
    Revs 113.4 mln vs 173.7 mln
    Note: Current year figures include 33.3 mln dlr after-tax
writedown of land and improvements, a 5.6 mln dlr increase in
allowance for doubtful accounts and after-tax gain of three mln
dlrs on debt retirement.


.I 221
.C
earn
.W
VISTA ORGANIZATION LTD <VISA> YEAR NET.
    NEW YORK, April 1 -
    Shr profit one ct vs loss nine cts
    Net profit 177,061 vs loss 1,364,878
    Revs 5,913,334 vs 487,121
    Avg shrs 18.6 mln vs 15.9 mln


.I 222
.C
earn
.W
TCA CABLE TV INC <TCAT> SETS QUARTERLY.
    TYLER, Texas, April 1 -
    Qtly div six cts vs six cts prior
    Pay April 23
    Record April Nine


.I 224
.C
acq
.W
MONSANTO <MTC> INVESTS IN BIOTECHNOLOGY <BIOD>.
    NEWTON, Mass., April 1 - Biotechnology Development Corp
said its Medicontrol Corp subsidiary received a 500,000 dlr
investment by Monsanto Co's G.D. Searle and Co subsidiary.
    The company said the investment was made pursuant to an
option Searle held, and increases Searle's stake in Medicontrol
to 19.8 pct with a total investment of one mln dlrs.


.I 225
.C
acq
.W
CHASE <CMB> BUYS BORG-WARNER <BOR> UNIT.
    NEW YORK, April 1 - Chase Manhattan Corp said Chase
Trans-Info, a subsidiary of its Chase Manhattan Bank N.A. unit,
has bought Borg-Warner Corp's Traffic Services business,
including an Illinois processing center, for an undisclosed
sum.
    Borg Warner Traffic Services provides freight bill
pre-audit, payment and information services to industry through
Borg-Warner Acceptance Corp.
    Chase Trans-Info, which offers similar services, is now the
largest provider of information services for the transportation
industry.


.I 227
.C
acq;strategic-metal;
.W
MOUNTAIN STATES <MTSR> ADDES TWO PROPERTIES.
    SALT LAKE CITY, April 1 - Mountain States Resources Corp
said it acquired two properties to its strategic minerals
holdings.
    The acquisitions bring to its land position a total of
5,100 acres of titanium, zirconium and rare earth resources,
the company said.
    Both properties, located in southern Utah, consist of
approximately 1,430 acres of unpatented mining claims and one
state lease, it said.
    The company also announced the formation of Rare Tech
Minerals Inc, a wholly-owned subsidiary.


.I 229
.C
earn
.W
REPUBLIC SAVINGS AND LOAN <RSLA> SETS DIVIDEND.
    MILWAUKEE, Wis., April 1 -
    Qtly div 30 cts vs 30 cts prior
    Pay April 27
    Record April 13
    NOTE: Company's full name is Republic Savings and Loan
Association of Wisconsin.


.I 230
.C
oilseed;wheat;grain;corn;soybean;
.W
SHULTZ USSR TRIP FUELS TALK OF EEP WHEAT OFFER.
    By Nelson Graves, Reuters
    WASHINGTON, April 1 - Speculation the United States will
offer subsidized wheat to the Soviet Union appears to have
reached a new level of intensity in the run-up to Secretary of
State George Shultz' visit later this month to Moscow.
    Rumors of an impending deal have coursed through wheat
markets since officials from the two countries held their
customary, semi-annual grain talks in February. Moscow's
decision at that time to reenter the U.S. corn market
strengthened the perception of warming farm trade prospects.
    Shultz is set to arrive in Moscow April 13.
    Shultz' statement two weeks ago that he would not stand in
the way of a wheat subsidy offer under the Export Enhancement
Program, EEP, coupled with the announcement of his visit to
Moscow, was interpreted by many grain trade representatives
here as a clear signal that the Reagan administration was
preparing an offer.
    Administration officials -- in and out of the U.S.
Agriculture Department -- have been extremely tight-lipped
about the prospects of a subsidy offer.
    But USDA officials for the most part have abandoned the
contention the proposal is dormant, suggesting that an offer,
while not a "done deal," is a live possibility.
    Prominent U.S. grain trade representatives -- many of whom
asked not to be identified -- continue to maintain that an
offer to subsidize four mln tonnes of wheat is imminent.
    Others, who one month ago claimed a deal was not possible,
are saying they would not rule one out.
    Rep. Pat Roberts, R-Kan., yesterday went so far as to
predict a subsidy offer would be made within the next ten days
to two weeks.
    Aides to Roberts said he had spoken to Republican leaders
who had been in contact with administration officials.
    Richard Fritz, director of international marketing at U.S.
Wheat Associates, said he was confident an export enhancement
offer would be made by the middle of this month.
    Fritz also said he thought the value of the bonus would end
up being close to the offer Washington made Peking earlier this
year when USDA approved subsidies to China of around 36 dlrs
per tonne on one mln tonnes of wheat.
    Some grain trade representatives say a four-mln-tonne wheat
subsidy offer might help stimulate more Soviet purchases of
U.S. corn and open the door to U.S. sales of soybeans.
    As ever, one of the crucial sticking points in a wheat deal
would appear to be price.
    Last summer the administration took the controversial step
of offering the Soviets subsidized wheat -- but were
embarrassed when Moscow spurned the proposal on the grounds
that the 15-dlr-per-tonne subsidy still left U.S. wheat prices
far above world market prices.
    The administration's decision to set the subsidy level up
front instead of accepting bids from exporters appeared to be a
means of controlling the price while attempting to dampen
criticism, grain trade sources said.
    Nonetheless, the pricing procedure did not prevent Shultz
from saying the Soviets were "chortling" because Washington was
offering Soviet housewives cheaper grain than that available to
U.S. housewives.
    The conventional wisdom among grain trade representatives
here is that a general warming of relations between the two
countries since last summer, combined with continued hard times
in the U.S. grain belt, would favor a subsidy offer.
    In addition, the USSR has made it clear it would consider
buying U.S. wheat if it were priced more competitively.
    However, observers have not forgotten the circumstances
surrounding the administration's announcement of the wheat
subsidy offer last summer.
    Up until the time of the announcment, congressional and
industry leaders were led to believe the White House had
decided to expand the Export Enhancement Program to include not
only the Soviets, but also a much broader list of countries.
    Instead, the administration scaled back the offer to
include only the Soviets.
    That last-minute change of heart adds a measure of
uncertainty even to the predictions of those most convinced
that the administration will not now pass up the opportunity to
sell four mln tonnes of wheat to the Soviet Union.


.I 231
.C
sugar
.W
KAINES CONFIRMS WHITE SUGAR SALES TO INDIA.
    LONDON, April 1 - London-based sugar operator Kaines Ltd
confirmed it sold two cargoes of white sugar to India out of an
estimated overall sales total of four or five cargoes in which
other brokers participated.
    The sugar, for April/May and April/June shipment, was sold
at between 214 and 218 dlrs a tonne cif, it said.


.I 233
.C
earn
.W
<THL HOLDINGS INC> YEAR JAN 31 NET.
    CANTON, Mass., April 1 -
    Oper net 94.4 mln vs 74.1 mln
    Revs 1.3 bilion vs 1.2 billion
    NOTE: THL is parent to SCOA Industries Inc, acquired in a
leveraged buyout in December 1985.


.I 235
.C
acq;strategic-metal;
.W
MOUNTAIN STATES ADDS TWO MINERALS PROPERTIES.
    SALT LAKE CITY, April 1 - Mountain States Resources Corp
said it acquired two properties to add to its strategic
minerals holdings.
    The acquisitions include a total of 5,100 acres of
titanium, zirconium and rare earth resources, the company said.
    Both properties, located in southern Utah, consist of
approximately 1,430 acres of unpatented mining claims and one
state lease, it said.
    The company also announced the formation of Rare Tech
Minerals Inc, a wholly-owned subsidiary.


.I 236
.C
coffee
.W
******RESTORATION OF COFFEE EXPORT QUOTAS BEFORE.
 OCTOBER SEEMS UNLIKELY - ICO PRODUCER DELEGATES

.I 237
.C
wheat;grain;
.W
SHULTZ USSR TRIP FUELS TALK OF EEP WHEAT OFFER.
    WASHINGTON, April 1 - Speculation the United States will
offer subsidized wheat to the Soviet Union appears to have
reached a new level of intensity in the run-up to Secretary of
State George Shultz' visit later this month to Moscow.
    Rumors of an impending deal have coursed through wheat
markets since officials from the two countries held their
customary, semi-annual grain talks in February. Moscow's
decision at that time to reenter the U.S. corn market
strengthened the perception of warming farm trade prospects.
    Shultz is set to arrive in Moscow April 13.


.I 238
.C
interest
.W
FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES.
    WASHINGTON, April 1 - The Federal Home Loan Mortgage Corp
adjusted the rates on its short-term discount notes as follows:
   MATURITY   RATE       OLD RATE  MATURITY
    32 days   6.00 pct   6.10 pct   1 day
  


.I 239
.C
coffee
.W
ICO QUOTAS BEFORE OCTOBER UNLIKELY - DELEGATES.
    LONDON, April 1 - The restoration of coffee export quotas
before the end of the current 1986/87 coffee year (Oct 1/Sept
30) now seems unlikely, given reluctance by International
Coffee Organization, ICO, producers and consumers to resume
negotiations on an interim quota accord, producer delegates
told reporters.
    Consumers and most producers see no point in reopening the
quota dialogue while Brazil's position remains unchanged, they
said.
    Brazil's refusal to accept a reduction in its previous 30
pct share of the ICO's global export quota effectively
torpedoed talks here last month aimed at restoring quotas
before October, the delegates noted.
    Disappointment at the lack of progress on quotas forced
coffee futures in London and New York to new lows today,
traders here said. Near May in New York fell below one dlr in
early trading at around 99.10 cents per pound, traders said.
    Producer delegates said that while the possibility of
reimposing quotas before October remained on the ICO agenda, in
practice the idea had effectively been discarded.
    The ICO's executive board session here this week has so far
barely touched on the quota debate, demonstrating general
unwillingness to revive talks while chances of success are
still remote, producer delegates said.
    Some producers are in no hurry to see quotas restored,
despite the price collapse seen since the failure of last
month's negotiations, they said.
    "With Brazil's frost season approaching, who wants to
negotiate quotas," one leading producer delegate said.
    Coffee prices normally rise during Brazil's frost season
(mainly June-August) as dealers and roasters build up stocks as
insurance against possible severe frost damage to Brazil's
crop.
    Many producers are more interested in working towards
reimposing quotas from October 1, based on a new system of
quota allocations valid until the International Coffee
Agreement expires in 1989, they said.
    Guatemala has already proposed the "other oilds" producer
group should meet in the next two months to begin talks on how
to allocate quota shares.
    Producers still seem divided on how to overhaul the quota
distribution system, with some producer delegates reporting
growing support for a radical reallocation, based on the
principle of "objective criteria" favoured by consumers.
    At last month's council session a splinter group of small
producers backed consumer demands for new quota shares based on
exportable production and stocks, while Brazil, Colombia and
the rest of the producers favoured leaving quota allocations
unchanged, except for some temporary adjustments.
    A delegate from one of the eight said more producers now
supported their cause.
    The delegate said unless major producers like Brazil showed
readiness to negotiate new quota shares, prospects for a quota
accord in October also looked bleak.
    The U.S. and most other consumers are still determined to
make reimposition of quotas conditional on a redistribution of
quota shares based on "objective criteria."
    ICO observers remained sceptical that Brazil would be
prepared to accept a quota reduction when the ICO council meets
in September.
    Brazil has adopted a tough stance with banks on external
debt negotiations and is likely to be just as tough on coffee,
they said.
    They said Brazil's reluctance to open coffee export
registrations might reflect fears this would provoke another
price slide and force an emergency ICO council session, which
would most likely end in failure.
    Producers met this afternoon to review the market situation
but had only a general discussion about how further
negotiations should proceed, a producer delegate said.
    Producers plan to hold consultations on quotas, and then
may set a date for a formal producer meeting, but plans are not
fixed, he said.
    The ICO executive board reconvened at 1650 hours local time
to hear a report from consultants on ICO operations. The board
meeting looks set to end today, a day earlier than scheduled,
delegates said.


.I 242
.C
earn
.W
(GEOFFRION LECLERC INC) SIX MTHS NET.
    MONTREAL, April 1 -
    Shr 39 cts vs 26 cts
    Net 3,466,000 vs 1,913,000
    Revs 27.7 mln vs 19.4 mln
    Note: period ended February 28.


.I 244
.C
interest
.W
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 1 - The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
    MATURITY   NEW RATE  OLD RATE  MATURITY
                         5.00 pct    30-69 days
                         5.92 pct    70-88 days
  30-123 days  5.00 pct  5.00 pct   89-123 days
 124-150 days  5.93 pct  5.93 pct  124-150 days
 151-349 days  5.00 pct  5.00 pct  151-349 days
 350-360 days  5.98 pct  5.98 pct  350-360 days


.I 245
.C
earn
.W
TOWLE MANUFACTURING CO <QTOW> YEAR LOSS.
    BOSTON, April 1 -
    Oper shr loss 4.71 dlrs vs loss 14.09 dlrs
    Oper loss 22 mln vs loss 67.2 mln
    NOTE: 1986 loss excludes gain on the sale of Gold Lance
Corp of 12.1 mln dlrs. Company is operating under chapter 11.


.I 246
.C
acq
.W
******DELTA AIR LINES COMPLETES ACQUISITION OF WESTERN AIR.

.I 247
.C
interest
.W
******TREASURY'S BAKER SAYS HE HOPES PRIME RATE INCREASES.
TEMPORARY

.I 250
.C
earn
.W
SOUTH ATLANTIC FINANCIAL CORP <SOAF> 4TH QTR.
    STAMFORD, Conn., April 1 -
    Shr 12 cts vs 33 cts
    Net 699,037 vs 1,349,077
    Year
    Shr 54 cts vs 55 cts
    Net 2,748,280 vs 1,833,766
    NOTE: Per shr amounts reported after preferred stock
dividend requirements.


.I 252
.C
copper
.W
CYPRUS LOWERS COPPER PRICE 1.25 CTS TO 67 CTS.
    DENVER, April 1 - Cyprus Minerals Company said it is
decreasing its electrolytic copper cathode price by 1.25 cents
to 67.0 cents a pound, effective immediately.


.I 255
.C
interest
.W
TREASURY'S BAKER HOPES PRIME RATE RISE TEMPORARY.
    WASHINGTON, April 1 - Treasury Secretary James Baker said
he hopes yesterday's small increase in two major money center
banks' prime rate was a temporary phenomenon.
    "I hope it was a temporary blip upward," he told a House
Appropriations subcommittee.
    He said the decline in interest rates since President
Reagan took office remains "one of the significant
accomplishments, in the economic area, of this administration."


.I 256
.C
acq
.W
DELTA <DAL> COMPLETES WESTERN AIR <WAL> BUY.
    ATLANTA, April 1 - Delta Air Lines Inc said it completed
the acquisition of Western Air Lines Inc this morning.
    The action follows U.S. Supreme Court Justice Sandra Day
O'Connor's overnight granting of Delta and Western's request to
stay an earlier injunction against the deal issued by the U.S.
Court of Appeals for the Ninth Circuit.
 More

.I 259
.C
earn
.W
AMERICAN OIL AND GAS CORP <AOG> 4TH QTR LOSS.
    HOUSTON, April 1 -
    Shr loss 34 cts vs loss 2.14 dlrs
    Net loss 2,275,000 vs loss 9,560,000
    Revs 17.0 mln vs 19.9 mln
    Year
    Shr loss 49 cts vs loss 2.11 dlrs
    Net loss 2,661,000 vs loss 9,283,000
    Revs 73.5 mln vs 93.6 mln

    NOTE: Results have been restated to reflects equity
investment in WellTech Inc for one month ended Dec 31, 1986 and
its investment in American Well Servicing for the 11 months
ended Nov 30, 1986 and full year 1985.
    1986 and 1985 net include loss of 3,512,000 dlrs and
5,944,000 dlrs, respectively, for equity in WellTech and
predecessor operations.


.I 260
.C
acq
.W
******MACANDREWS/FORBES UNIT BEGINS OFFER TO BUY ALL REVLON.
GROUP NOT ALREADY OWNED

.I 261
.C
earn
.W
<NEWPARK RESOURCES INC> YEAR ENDED DEC 31 LOSS.
    NEW ORLEANS, April 1 -
    Oper shr loss 1.99 dlr vs loss 4.88 dlrs
    Oper net loss 29.1 mln vs 70.8 mln
    Revs 34.8 mln vs 84.8 mln
    NOTE: 1986 and 1985 oper net excludes a loss of 5.5 mln
dlrs or 37 cts a share and 64.6 mln dlrs or 4.43 dlrs a share,
respectively, for discontinued operations.
    1986 net also excludes a gain of 66.4 mln dlrs or 4.50 dlrs
a share for credit on debt restructuring.


.I 263
.C
earn
.W
TIERCO GROUP INC <TIER> YEAR ENDED DEC 31 LOSS.
    OKLAHOMA CITY, April 1 -
    Shr loss 72 cts vs loss 1.57 dlr
    Net loss 1,526,359 vs loss 3,315,834
    Revs 8,032,798 vs 7,276,517


.I 264
.C
earn
.W
MICRODYNE CORP <MCDY> SETS PAYOUT.
    OCALA, Fla., April 1 -
    Semi div three cts vs three cts prior
    Pay June 12
    Record May 15


.I 268
.C
interest
.W
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 1 - The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
    MATURITY   NEW RATE  OLD RATE  MATURITY
                                                               
                              30-123 days  5.00 pct  5.00 pct  
30-123 days
 124-150 days  5.90 pct  5.93 pct  124-150 days
 151-349 days  5.00 pct  5.00 pct  151-349 days
 350-360 days  5.96 pct  5.98 pct  350-360 days


.I 270
.C
earn
.W
CROWNAMERICA INC <CRNA> 2ND QTR ENDED FEB 28.
    DALTON, Ga., April 1 -
    Shr two cts vs 29 cts
    Net 23,000 vs 338,000
    Revs 20.2 mln vs 21.5 mln
    Six mths
    Shr 64 cts vs 97 cts
    Net 741,000 vs 1,113,000
    Revs 43.2 mln vs 44.3 mln
    NOTE: 1986 2nd qtr and six mths ended March one.


.I 272
.C
earn
.W
DIAMOND SHAMROCK <DIA> SEES BETTER 1987 EARNINGS.
    NEW YORK, APRIL 1 - Diamond Shamrock Corp, which will split
this month into two separate companies, expects to show
improved earnings in 1987 over last year, executives of the new
company told Reuters.
    Charles Blackburn, president and chief executive officer of
Diamond Shamrock and the new company, which will emphasize
exploration and production, said, "Earnings wil be better than
in 1986." He declined to say how much better.
    In 1986 Diamond Shamrock reported a loss of 115.6 mln dlrs
on total revenues of 2.543 billion dlrs. Exploration and
production lost 18.5 mln dlrs on revenues of 593.5 mln dlrs.
    Roger Hemminghaus, Diamond Shamrock vice president and
soon-to-be chief executive of the spin-off Diamond Shamrock
Refining and Marketing Co, said, "Refining and marketing is a
margin business. The margins will return and this will be a
better year than 1986."
    In 1986, refining and marketing showed operating profits of
40.1 mln dlrs on revenues of 1.636 billion dlrs.
    "We are also expecting to be in the black in the first
quarter (1987)," Heminghaus added. In the first quarter of 1986,
the refining and marketing segment showed a loss of 27.1 mln
dlrs on revenues of 492.1 mln dlrs.
   
    The executives were in New york for meetings with
institutional investors aimed at increasing interest in the
company's stock.
    On the New York Stock Exchange, Diamond Shamrock was
trading at 16-1/4, down 1/4.
    Earlier this year, T. Boone Pickens offered 15 dlrs a share
for Diamond Shamrock, and management countered with an offer at
17 dlrs and a decision to split off the refining and marketing
operation to its shareholders.
    "Our advisors convinced us the market would give higher
multiples for pure plays," Blackburn said.


.I 273
.C
earn
.W
VMS STRATEGIC <VLANS> SETS INITIAL DIVIDEND.
    CHICAGO, April 1 - VMS Strategic Land Trust said it
delcared an initial quarterly cash dividend of 30 cts a share,
payable May 15 to shareholders of record April 20.
    The company also said that effective today it will be
trading on the NASDAQ system under the symbol <VLANS>.


.I 274
.C
iron-steel
.W
BETHLEHEM STEEL <BS> SETS PLATE PRICE INCREASES.
    BETHLEHEM, Pa., April 1 - Bethlehem Steel Corp said its
base price for carbon plates and high-strength and low-alloy
plates will be increased by 25 dlrs to 405 dlrs a short ton,
effective July one.
    The company said its composite prices for alloy plates will
also be increased 25 dlrs per ton on the same date, adding it
does not publish its prices for this product.
    Bethlehem Steel said its composite prices for strip mill
plates will be increased 15 dlrs a ton.


.I 276
.C
earn
.W
EQUICOR SEES YEAR REVENUES TO TOP TWO BILLION.
    NASHVILLE, Tenn., April 1 - Equicor, Equitable HCA Corp,
said that the company will likely attain revenues in excess of
two billion dlrs in its first year of operations.
    The company, created last October with initial equity of
400 mln dlrs, is owned equally by the Equitable Life Assurance
Society of the U.S. and Hospital Corp of America <HCA>.
    Financial results for the first six months of the company's
operations were not disclosed. Equicor provides employee group
plans to 1,500 corporations nationwide. It said it aims to
double its marketshare in five years from the about 3.5 pct of
the employee benefits industry it controls.


.I 277
.C
acq
.W
MACANDREWS/FORBES BEGINS REVLON <REV> OFFER.
    NEW YORK, April 1 - MacAndrews and Forbes Group Inc said it
began an 18.50-dlr-a-share cash offer for all common stock of
Revlon Group Inc it does not already own.
    The offer, which is being made by a wholly owned
subsidiary, Revmac Acquisition Corp, is subject to financing
and at least 28.5 mln shares being tendered, the company said.
    MacAndrews and Forbes, wholly owned by Ronald Perelman,
chairman of Revlon Group, held about 31.8 pct of the voting
power of Revlon as of March 27, a spokesman said. The stake
includes about 15.1 pct of Revlon common and 95 pct of its
series A preferred stock, he said.
 More

.I 278
.C
earn
.W
ARCO <ARC> UP ON HIGHER EARNINGS ESTIMATE.
    NEW YORK, April 1 - Atlantic Richfield Co's stock rose
sharply after analyst Eugene Nowak of Dean Witter Reynolds Inc
raised his earnings estmates of the company, traders said.
    ARCO jumped 1-3/4 to 81-3/4.
    Nowak said that based on an average oil price of 17 dlrs a
barrel in 1987, the company should earn about 4.50 dlrs a
share. Next year, based on an average oil price of 18 dlrs a
barrel, ARCO should earn about five dlrs a share. The company
earned 3.38 dlrs a share in 1986. "If oil prices should rise to
an average of 20 dlrs a barrel," he said, "ARCO could record
earnings of 6.50 dlrs a share.
    Nowak said his increased estimates come after the company
told analysts yesterday that its first quarter earnings will
comfortably cover its quarterly dividend requirement of one dlr
a share.
    Nowak said, "The company has done an outstanding job
reducing expenses, and ARCO is poised to generate greater
earnings power." He said first quarter earnings will likely
exceed the company's expectations stated yesterday and be in
the 1.15-1.20 dlr-a-share range.


.I 280
.C
grain;corn;sorghum;
.W
U.S. SAID PROMISED BULK OF MAIZE EXPORT TO SPAIN.
    BRUSSELS, April 1 - The U.S. Has been promised a near
monopoly of maize exports to Spain from third countries
guaranteed under an agreement with the European Community, an
EC official said.
    The official, who asked not to be named, told Reuters that
the guarantee was given in an unpublished clause of the
agreement.
    Under the accord, which began in January, third countries
were guaranteed access for the next four years for two mln
tonnes a year of maize to the Spanish market, as well as
300,000 tonnes of sorghum.
    However, the official said the U.S. Had been assured that
almost all the exports would be reserved for its traders.
    The EC Commission is to ask member states to agree either a
tender system to fix reduced import levies for the maize or to
authorise direct imports by the Spanish intervention board.
    EC sources noted that under a tender system maize from
outside the U.S. Would sometimes be offered on more favourable
terms than that from the U.S.
    No Commission spokesman was immediately available for
comment.


.I 281
.C
acq
.W
DEAK INTERNATIONAL BUYS JOHNSON MATTHEY.
    NEW YORK, APRIL 1 - Deak International, a foreign currency
and precious metals firm, announced the acquisition of Johnson
Matthey Commodities of New York from Minories Finance Limited,
a unit of the Bank of England.
    The purchase valued at 14.8 mln dlrs follows the recent
acquisition of London's Johnson Matthey Commodities Limited,
Deak said.
    The New York firm will be known as Deak International
Trading Ltd, the company said.
    Arkadi Kuhlmann, president and chief executive officer of
Deak International said the purchase will expand Deak's
operations into the precious metals and wholesale non-ferrous
metals trading arenas.


.I 282
.C
acq
.W
WALL STREET STOCKS/PUROLATOR COURIER <PCC>.
    NEW YORK, April 1 - Purolator Courier Corp stock jumped
5-3/8 on a 40 dlr per share takeover offer from Emery Air
Freight Corp <EAF>, traders said.
    Purolator was trading at 40-1/4, 1/4 above the offer price.
The Emery offer tops a 35 dlr per share buyout agreement E.F.
Hutton LBO Inc reached with Purolator February 27.
    That offer was to have expired today. Neither Hutton nor
Purolator had any immediate comment.
    "There's probably some speculation out there that there
might be another offer," said one analyst.


.I 283
.C
grain;corn;
.W
ARGENTINE CORN SALES TO USSR LOWER - USDA REPORT.
    WASHINGTON, April 1 - Total corn sales by Argentina to the
Soviet Union are only 1.5 to 1.8 mln tonnes, with delivery
spread out from March to June, the U.S. Agriculture
Department's Counselor in Buenos Aires said in a field report.
    The report, dated March 27, said many sources have stated
that the Soviet Union was initially interested in purchasing
2.3 mln tonnes lof corn from Argentina.
    However, Soviet purchases from the United States have
tended to displace additional Argentine purchases, the report
said.
    The USDA has to date reported USSR purchases of 2.6 mln
tonnes of U.S. corn for delivery in the current U.S.-USSR grain
agreement year, which ends this September 30, it said.


.I 287
.C
earn
.W
BARNES GROUP <B> EXPECTS SALES TO GROW MODESTLY.
    HARTFORD, Conn., April 1 - Barnes Group said it expects
sales and net income for 1987 will be up slightly over 1986.
    Without supplying specific figures, Barnes told
shareholders at its annual meeting it expected net income to
improve at a rate exceeding its growth in sales, which was two
pct higher than 1985.
    The company said it recorded income from continuing
operations of 16.6 mln dlrs, or 2.57 dlrs per share, on sales
of 440 mln dlrs in 1986. It said it recorded income from
continuing operations of 16.4 mln dlrs, or 2.27 dlrs per share,
in the previous year.


.I 289
.C
earn
.W
ROADWAY MOTOR PLAZAS INC 3RD QTR JAN 31.
    ROCHESTER, N.Y., April 1 -
    SHr two cts vs one cts
    Net 116,843 vs 41,400
    Revs 17.3 mln vs 12.3 mln
    Nine months
    SHr 15 cts vs 10 cts
    Net 639,448 vs 301,000
    REvs 37.6 mln vs 35.8 mln


.I 291
.C
earn
.W
DIONICS INC <DION> YEAR NET.
    WESTBURY, N.Y., April 1 - 
    Shr seven cts vs 10 cts
    Net 127,000 vs 168,100
    Revs 2,807,400 vs 3,042,900


.I 292
.C
earn
.W
WINN-DIXIE STORES INC <WIN> SETS MONTHLY PAYOUT.
    JACKSONVILLE, Fla., April 1 -
    Mthly div 15 cts vs 15 cts prior
    Pay April 30, May 29, June 24
    Record April 15, May 15, June 10


.I 295
.C
earn
.W
WAXMAN INDUSTRIES INC <WAXM> REGULAR PAYOUT.
    BEDFORD HEIGHTS, Ohio, April 1 -
    Qtly div class A two cts vs two cts prior
    Qtly div class B one ct vs one ct prior
    Pay April 17
    Record April 10


.I 296
.C
acq
.W
DEAK BUYS JOHNSON MATTHEY COMMODITIES.
    NEW YORK, APRIL 1 - Deak International, a foreign currency
and precious metals firm, announced the acquisition of Johnson
Matthey Commodities of New York from Minories Finance Limited,
a unit of the Bank of England.
    The purchase valued at 14.8 mln dlrs follows the recent
acquisition of London's Johnson Matthey Commodities Limited,
Deak said.
    The New York firm will be known as Deak International
Trading Ltd, the company said.
    Arkadi Kuhlmann, president and chief executive officer of
Deak International, said the purchase will expand Deak's
operations in the precious metals and wholesale non-ferrous
metals trading arenas.


.I 301
.C
interest
.W
IIF EXECUTIVE SEES INTEREST RATES DECLINING.
    WASHINGTON, April 1 - Institute of International Finance
Managing Director Horst Schulmann said that his orgnaization
has been forecasting further declines of interest rates in the
first half this year and then a levelling off and there is no
reason to change that.
    Speaking to reporters, the bank research group said that
the increase in interest rates announced yesterday and other
activity in the foreign exchange markets did not indicate a
fundamental change in the outlook.
    Schulmann, speaking broadly about the global debt problem,
said that the International Monetary Fund should increase its
assistance to third world countries.
    The remarks come just before next week's meeting of the
IMF's Interim Committee and the Joint Development Committee of
the IMF and World Bank.
    In a letter to the committee's, the bank group said,
"Commercial banks cannot be the dominant supplier of balance of
payments finance."
    Schulmann said that IMF exposure peaked in 1985 and has
declined a bit since then.


.I 304
.C
oilseed;rapeseed;
.W
JAPANESE CRUSHERS BUY CANADIAN RAPESEED.
    WINNIPEG, April 1 - Japanese crushers bought 5,000 to 6,000
tonnes of Canadian rapeseed for May shipment in export business
overnight, trade sources said.


.I 305
.C
earn
.W
WALKER TELECOMMUNICATIONS CORP <WTEL> 4TH QTR.
    HAUPPAUGE, N.Y., April 1 -
    Shr loss 58 cts vs loss nil
    Net loss 2.9 mln vs loss 17,818
    Revs 5.0 mln vs 7.4 mln
    Year
    Shr loss 45 cts vs profit four cts
    Net loss 2.0 mln vs profit 174,562
    REvs 28.5 mln vs 25.2 mln
   
    NOTE:1986 4th qtr loss includes loss of 2.2 mln dlrs from
discontinuance of operations. 1985 4th qtr includes loss of
79,395 dlrs from discontinued operations.
    1986 4th qtr includes 3.5 mln dlr provision for costs
anticipated in connection with disposal of division and 500,000
dlrs in adjustments related to write-downs. 1985 4th qtr
includes gain of 178,000 dlrs for exchange of telephone
inventory for barter credits.


.I 306
.C
earn
.W
BROKERS SECURITIES INC <BKRS> 4TH QTR LOSS.
    NORFOLK, Va., April 1 - 
    Shr loss 16 cts vs profit 23 cts
    Net loss 97,600 vs profit 91,980
    Revs 302,745 vs 359,699
    Avg shrs 621,036 vs 388,536
    Year
    Shr profit seven cts vs profit 36 cts
    Net profit 36,400 vs profit 140,980
    Revs 1,610,286 vs 763,071
    Avg shrs 512,235 vs 388,536
   
    Note: Year-ago net includes extraordinary gains of 33,654
for qtr and 42,654 for the year.


.I 307
.C
earn
.W
FIRST WORLD CHEESE INC <FWCH> 4TH QTR LOSS.
    SOUTH ORANGE, N.J., April 1 - 
    Shr loss 15 cts vs profit nil
    Net loss 392,428 vs profit 1,255
    Revs 6,371,092 vs 3,031,091
    Avg shrs 2,544,000 vs 1,440,000
    Year
    Shr loss 13 cts vs profit seven cts
    Net loss 274,951 vs profit 100,534
    Revs 18.1 mln vs 10.8 mln
    Avg shrs 2,072,153 vs 1,440,000


.I 308
.C
cpi
.W
YUGOSLAV RETAIL PRICES UP 7.0 PCT IN MARCH.
    BELGRADE, April 1 - Yugoslav retail prices in March rose
7.0 pct from February, to stand 93.2 pct higher than in March
1986, Federal Statistics Office (FSO) figures show.
    In February, retail prices rose 7.2 pct from January to
stand 91.6 pct higher than in February 1986.
    The cost of living, which includes rents and costs such as
utilities and transport, was up 7.8 pct in March from February
to stand 94.8 pct higher than in March 1986, the FSO said.
    In February the cost of living increased 7.3 pct from
January and stood 93.6 pct higher than in February 1986.


.I 309
.C
ship;grain;
.W
GRAIN SHIPS WAITING AT NEW ORLEANS.
    New Orleans, April 1 - Ten grain ships were loading and 18
were waiting to load at New Orleans elevators, trade sources
said.
 ELEVATOR                     LOADING  WAITING
 Continental Grain, Westwego     1      3
 Mississippi River, Myrtle Grove 2      0
 ADM Growmark                    1      4
 Bunge Grain, Destrehan          1      0
    ELEVATOR                LOADING  WAITING
 ST CHARLES DESTREHAN         1      3
 RESERVE ELEVATOR CORP        0      1
 PEAVEY CO, ST ELMO           1      2
 CARGILL GRAIN, TERRE HAUTE   1      4
 CARGILL GRAIN, PORT ALLEN    1      0
 ZEN-NOH                      1      1


.I 311
.C
acq
.W
J.C. PENNEY <JCP> TO BUY EQUITY IN BEEBA'S.
    NEW YORK, April 1 - J.C. PEnney Co Inc said it signed a
letter of intent to acquire one mln shares, or a 20 pct equity
interest, of Beeba's Creations Inc <BEBA> for 18.75 dlrs a
share.
    Penney said the agreement also calls for Beeba's, a major
supplier of junior sportswear, to work with Penny in the
establishment of junior specialty shops to be created in about
100 Penney stores in early 1988.
    Freestanding stores are also being planned, the company
said. Beeba's will be the principal source of merchandise to
the shops, it said.
    For the six months ended February 28, Beeba's reported net
income of 1.2 mln dlrs on sales of 39.4 mln dlrs.
    Penney said it will establish an independent merchandising
and marketing organization to manage and support the shops
which will be staffed by personnel both from within and outside
the company.
    The company said the new agreement would have no impact on
its current supplier base and it will continue to work with as
braod base of suppliers of junior sportswear as it does in its
other merchandise areas.


.I 312
.C
interest
.W
AUSTRIAN BANKS DIVIDED OVER INTEREST RATE CUT.
    VIENNA, April 1 - Calls for a cut in Austrian interest
rates have grown in recent days but bank chiefs are divided
over the issue.
    Karl Vak, General Director of the Zentralsparkasse und
Kommerzialbank, Wien, called today for a cut of up to half a
percentage point in interest rates across the board. But Hannes
Androsch, head of Creditanstalt-Bankverein <CABV.VI> told
Reuters he opposed a cut because it would hurt small savers.
    Vak told a news conference that last January's cut in
lending rates for commercial customers and for all depositors
by a quarter point had been insufficient.
    The January cut followed the National Bank's lowering of
its discount and Lombard rates by half a point in line with a
similar Bundesbank move. Prime lending rate is now 8.75 pct and
deposit rates vary between 3.25 and 5.75 pct.
    Yesterday Hellmuth Klauhs, head of the Genossenschaftliche
Zentralbank AG, said rates could fall at least a quarter of a
point, or even half a point if German rates dropped further.
    Vak noted that inflation had fallen below one pct. A
widening gap between Austrian rates and cheaper West German
credit along with forecasts of slow Austrian economic growth
this year also justified a further interest drop, he said.
    Karl Pale, head of Girozentrale und Bank der
oesterreichischen Sparkassen AG [GIRV.VI] has also called for
lower deposit rates but said lending rates should remain
unchanged at the moment. Interest margins were too small,
particularly when compared with other West European countries.
    But Hans Haumer, head of the Erste Oesterreichische
Spar-Casse-Bank told Reuters that no cut should be made unless
West German rates came down first.
    Banking sources said no bank seemed ready to lower rates
alone and supporters of a cut would have difficulty overcoming
opposition from Creditanstalt, Austria's biggest bank.


.I 313
.C
earn
.W
A.G. EDWARDS INC <AGE> 4TH QTR FEB 28 NET.
    ST. LOUIS, April 1 -
    Shr 81 cts vs 63 cts
    Net 16,900,000 vs 13,100,000
    Revs 152.5 mln vs 118.1 mln
    Year
    Shr 2.59 dlrs vs 1.85 dlrs
    Net 53,700,000 vs 38,100,000
    Revs 526.3 mln vs 404.3 mln
    NOTE: Prior year earnings reflect a three-for-two stock
split distributed in May, 1986


.I 315
.C
acq
.W
PERIPHERAL SYSTEMS <PSIX> AGRESS TO BUY COMPANY.
    PORTLAND, Ore., April 1 - Peripheral Systems Inc said it
agreed in principle to acquire the outstanding shares of
<Nucell Inc>.
    The agreement calls for an exchange of one share of
Peripheral for each share of Nucell, subject to approval by
both companies' boards, it said.
    Peripheral said its increased involvement in the
development of Nucell's nuclear battery technology made the
merger practical.


.I 319
.C
interest
.W
MANUFACTURERS NATIONAL <MNTL> UNIT LIFTS RATE.
    DETROIT, April 1 - Manufacturers National Corp's
Manufacturers Bank-Wilmington said it increased the interest
rate on its no-fee variable rate MasterCard to 13.6 pct from
13.3 pct.
    The new interest rate applies to the second quarter. The
rate on the card is set quarterly.


.I 321
.C
acq
.W
FIRST CHICAGO <FNB> UNIT BUYS BANKS.
    CHICAGO, April 1 - First Chicago Corp's American National
Bank unit said it completed the acquisition of four suburban
Chicago banks with combined assets of about 231 mln dlrs.
    The banks are National Bank of North Evanston, Elgin
National bank, First National Bank of Schiller Park and
Merchants and Manufacturers State Bank in Melrose Park.
    American National now owns nine banks.


.I 322
.C
acq
.W
CENTERRE <CTBC> ACQUIRES BENEFIT PLAN SERVICES.
    ST. LOUIS, April 1 - Centerre Bancorp said it completed the
acquisition of Benefit Plan Services Inc, Maryland Heights,
Mo., which specializes in designing and administering small and
moderately sized pension plans.
    Terms were not disclosed.


.I 324
.C
stg
.W
******LAWSON TELLS PANEL  HE WANTS STERLING TO STAY AROUND 1.60.
DLRS, 2.90 MARKS.

.I 326
.C
earn
.W
CONOLOG CORP <CNLG> 2ND QTR JAN 31 NET.
    SOMERVILLE, N.J., April 1 - 
    Shr two cts vs two cts
    Net 69,831 vs 107,773
    Revs 1,068,905 vs 2,401,518
    Six mths
    Shr three cts vs three cts
    Net 129,649 vs 155,089
    Revs 2,673,141 vs 4,666,104


.I 329
.C
interest
.W
BANKERS TRUST <BT> RAISES PRIME LENDING RATE.
    NEW YORK, April 1 - Bankers Trust Co said it has raised its
prime lending rate to 7-3/4 pct from 7-1/2, effective
immediately.
    This move is the latest in a series of similar actions by
leading U.S. money center banks, including Citibank NA and
Chase Manhattan Bank NA, over the last 24 hours.
    AmeriTrust Corp of Ohio also raised its prime lending rate
to 7-3/4 pct from 7-1/2, effective tomorrow.     


.I 330
.C
interest
.W
BOATMEN'S NATIONAL BANK <BOAT> RAISES PRIME.
    ST. LOUIS, April 1 - Boatmen's Bancshares said its
Boatmen's National Bank raised the prime rate to 7-3/4 pct from
7-1/2 pct, effective immediately.


.I 334
.C
acq
.W
UNICORP VOTING STAKE HIKED IN UNION ENTERPRISES.
    TORONTO, April 1 - <Union Enterprises Ltd> said holders of
7.2 mln or 80 pct of its class A series one preferred shares
requested to retract their shares under terms of the issue,
thus raising <Unicorp Canada Corp>'s voting stake in Union to
58 pct from 50.
    Union said it paid about 90 mln dlrs on April 1 for the
retraction, using existing credit lines.


.I 338
.C
earn
.W
STARRETT HOUSING CORP <SHO> 4TH QTR NET.
    NEW YORK, April 1 - 
    Oper shr 20 cts vs eight cts
    Oper net 1,869,000 vs 957,000
    Revs 41.0 mln vs 22.9 mln
    Year
    Oper shr 52 cts vs 53 cts
    Oper net 5,386,000 vs 5,147,000
    Revs 116.8 mln vs 98.3 mln
    Note: Oper excludes extraordinary reserves related to
arbitration of Iranian claims of 2,062,000 vs 3,200,000 for qtr
and year.


.I 340
.C
interest
.W
FIRST WISCONSIN NAT'L BANK<FWB> HIKES PRIME RATE.
    MILWAUKEE, April 1 - First Wisconsin National Bank said it
has raised its prime rate to 7-3/4 pct from 7-1/2 pct,
effective today.


.I 342
.C
earn
.W
GAC LIQUIDATING TRUST <GACTZ> SETS CASH PAYOUT.
    CORAL GABLES, Fla., April 1 - 
    Unit distribution one dlr vs 1.75 dlrs prior
    pay June one
    Record May one
    Note: Prior distribution declared in April 1986.


.I 343
.C
earn
.W
WRATHER CORP <WCO> 4TH QTR LOSS.
    BEVERLY HILLS, Calif., April 1 -
    Shr loss 53 cts vs loss 55 cts
    Net loss 3,865,000 vs 3,963,000
    Revs 24.2 mln vs 26.8 mln
    Year
    Shr loss 1.21 dlrs vs profit 56 cts
    Net loss 8,758,000 vs profit 4,040,000
    Revs 108.5 mln vs 113.8 mln

    Note: Prior qtr figures include income from discontinued
operations of 10,000 dlrs, gain on disposal of discontinued
operations of 269,000 dlrs, or four cts per share, and
operating loss carryforward gain of 936,000 dlrs, or 13 cts per
share.
    Prior year figures include income from discontinued
operations of 164,000 dlrs, or two cts per share, gain on
disposal of discontinued operation of 3.9 mln dlrs, or 54 cts
per share, and operating loss carryforward gain of 3.7 mln
dlrs, or 48 cts per share.


.I 345
.C
sugar
.W
EC SUGAR IMPORT LEVIES.
    BRUSSELS, April 1 - The following import levies for white
and raw sugar are effective tomorrow, in European currency
units (ecu) per 100 kilos.
    White sugar, denatured and non-denatured 51.94 versus 51.36
previously.
    Raw sugar, denatured and non-denatured 44.05 versus 43.69
previously.
    The rate for raws is based on 92 pct yield.


.I 347
.C
earn
.W
MURPHY OIL CORP <MUR> SETS REGULAR DIVIDEND.
    EL DORADO, Ark., April 1 - 
    Qtly div 25 cts vs 25 cts prior
    Pay June one
    Record May 15


.I 349
.C
money-fx;stg;
.W
LAWSON WANTS STERLING AROUND 1.60 DLRS, 2.90 MKS.
    LONDON, April 1 - U.K. Chancellor of the Exchequer Nigel
Lawson said he wanted sterling to stay roughly where it was,
specifying a rate of around 2.90 marks and 1.60 dlrs.
    He told the National Economic Development Council that the
recent Paris meeting of major industrialised nations had agreed
on the need for exchange rate stability. There was now a
"reasonable alignment of currencies" and the U.K. Government
intended to keep sterling at about its present level, he said.
    That meant around 2.90 marks, which is the single most
important rate to concentrate on, and 1.60 dlrs, Lawson said.
    His disclosure of two of the key targets for sterling was
highly unusual, foreign exchange market analysts said.
    In the past he has preferred to be less definite about the
Government's exchange rate policy, lest it give foreign
exchange markets set limits to test.
    Lawson told the committee, which is a tripartite forum of
government, unions and industry, that the pound would be kept
near its present level by a mixture of interest rates and
intervention in the foreign exchange markets.
    The pound finished trading here today at 1.6040/50 dlrs and
2.9210/45 marks.
    His disclosure of two of the key targets for sterling was
highly unusual, foreign exchange market analysts said.
    In the past he has preferred to be less definite about the
Government's exchange rate policy, lest it give foreign
exchange markets set limits to test.
    Lawson told the committee, which is a tripartite forum of
government, unions and industry, that the pound would be kept
near its present level by a mixture of interest rates and
intervention in the foreign exchange markets.
    The pound finished trading here today at 1.6040/50 dlrs and
2.9210/45 marks.


.I 350
.C
interest
.W
NEW VENEZUELA DEBT INTEREST RATE GOES INTO EFFECT.
    CARACAS, April 1 - The new interest rate of 7/8 pct over
Libor on Venezuelan public sector debt payments goes into
effect today, Finance Minister Manuel Azpurua said .
    Azpurua told reporters yesterday the reduction from the
previous margin of 1-1/8 pct above Libor will save the country
some 50 mln dollars in debt servicing.
    The new rate is among changes agreed last month to the 20.3
billion dlr public sector debt rescheduling. Under the new
agreement, Venezula was also able to extend the term from 12 to
14 years and to lower debt payments in the 1987-89 period by 64
pct.
    Azpurua said that according to the agreement, the new
interest rate will be retroactive to April 1, provided the
accord is approved before October 1.
    He told reporters the term sheet detailing the changes in
the rescheduling has already been endorsed by the 13-member
debt steering committee and is now being sent to the country's
460 creditor banks for their approval.
    The new agreement replaces a rescheduling accord signed in
February 1986, which Venezuela asked to revise to reflect a 45
pct drop in oil revenues.


.I 353
.C
interest
.W
SUNTRUST BANKS <STI> RAISES PRIME TO 7-3/4 PCT.
    NEW YORK, April 1 - SunTrust Banks said that Sun Banks in
Florida and Trust Co banks in Georgia have raised their prime
rate to 7-3/4 pct from 7-1/2 pct.
    The company said the action is effective immediately.


.I 355
.C
acq
.W
HORN/HARDART <HOR> UNIT DISPOSES 33 RESTAURANTS.
     LAS VEGAS, Nev., April 1 - Horn and Hardart Co said it
disposed of 33 Bojangles' Chicken 'N Biscuits restaurants in
Florida as part of its previously announced retrenchment of its
Bojangles' subsidiary.
    Terms were not disclosed.
    The company said the restaurants in Orlando, Tampa and
Jacksonville markets have incurred the majority of Bojangles'
operating losses over the last two years.
    Due to the transaction, Horn and Hardart is projecting a
positive cash flow for the unit for the remainder of fiscal
1987.
    A spokesman said the disposition consists of a combination
of sale, lease and re-franchise agreements.
    The transaction involves one-quarter of the company-owned
Bojangles' restaurants and is in accordance with its
restructuring program announced in October 1986.
    A spokesman said the company is considering the sale or
spinoff of the 91-company owned additional restaurants, which
are profitable.
    The company said the disposition will result in no profit
or loss for the company because the costs were anticipated in a
34-mln-dlr reserve taken in the third quarter of 1986.
    The foodservice division, which includes Burger King,
Arby's and Tony Roma's, had a pre-tax operating loss of 29.6
mln dlrs in 1986, including the 34.0 mln dlr charge to
restructure Bojangles. Excluding Bojangles', the group had
revenues of 43.8 mln dlrs.
    The company said that, pursuant to the restructuring, it
has cut general and administrative expenses attributable to
Bojangle' by 35 pct.
    


.I 356
.C
earn
.W
MULTIBANK FINANCIAL CORP <MLTF> IN PAYOUT.
    DEDHAM, Mass., April 1 -
    Qtly div 13 cts vs 13 cts prior
    Pay April 20
    Record April 10


.I 359
.C
interest
.W
FIRST BANK SYSTEMS <FBS> UNITS HIKE RATE.
    MINNEAPOLIS, April 1 - First Bank Minneaplois and First
Bank Saint Paul, both units of First Bank Systems Inc, said
they raised their reference rates to 7-3/4 pct from 7-1/2 pct.


.I 360
.C
acq
.W
CHEMICAL FABRICS <CMFB> AGREEMENT TERMINATED.
    MEWRRIMACK, N.H., April 1 - Chemical Fabrics Corp said an
agreement in principle under which OC Birdair Inc would have
purchased assets related to the architectural structures
business of Dow Corning corp's ODC Inc division has been
terminated.
    Under that agreement, Chemical Fabrics would also have
become distributor of Dow Corning's Vestar silicone-coated
fiberglass architecural fabrics.
    OC Birdair is a joint venture of Chemical Fabrics and Owens
Corning Fiberglas Corp <OCF> and Down Corning a venture of Dow
Chemical Co <DOW> and Corning Glass Works <GLW>.
    Chemical Fabrics said once the current project backlog of
Dow Corning's ODC division is completed, Dow Corning plans to
discontinue its design-engineering, fabrication and
installation services.
    Chemical Fabrics said the companies will cooperate on the
development of new products for architectural and industrial
applications and may supply architectural materials to each
other.


.I 361
.C
acq
.W
SIS <SISB> COMPLETES WENDY'S <WEN> UNIT BUY.
    WESTLAKE, Ohio, April 1 - SIS Corp said it has completed
the acquisition of its franchisor Sisters International Inc
from Wendy's International Inc for 14.5 mln dlrs in stock.
    It said the purchase includes 35 restaurants in Ohio
operates by Sisters, giving SIS a total of 55 restaurants, and
franchise relationships in six Midwestern and Southern states.


.I 363
.C
sugar
.W
BRITISH SUGAR SOWINGS OFF TO SLOW START.
    LONDON, April 1 - Drilling of this year's British sugar
beet crop got off to a slow start due to poor weather
conditions with only around one pct sown so far, a spokesman
for British Sugar Plc said.
    This compares with two pct at the same stage last year,
three pct in 1985 and 38 to 39 pct in 1984.
    There is little cause for concern with better weather
forecast and the capacity available to drill the contracted
area of around 200,000 hectares in about 10 days. Seed beds
look good and farmers are advised to wait for soil temperatures
to rise, the spokesman said.
    "If the crop can be drilled by the third week in April we
will be delighted," he said. Last year a large proportion of the
crop was not drilled until May but it still turned out to be
the equal second largest on record.


.I 364
.C
dlr;money-fx;
.W
CURRENCY INTERVENTION TIMING CRUCIAL - ANALYSTS.
    NEW YORK, April 1 - The dollar's recent decline, despite
massive central bank purchases, is a forceful reminder that
official intervention in the foreign exchanges can work only if
it is well-timed to coincide with shifts in market fundamentals
or sentiment, dealers and analysts said.
    Central banks may succeed in slowing a trend, but, without
accompanying policy changes, they stand little chance of
reversing the direction of an ever-growing global market in
which more than 200 billion dlrs is traded every day, the
sources said.
    "Timing and psychology are the key to successful
intervention," said Jim O'Neill, a financial markets economist
with Marine Midland Banks Inc. The importance of complementary
changes in economic fundamentals was underlined yesterday when
a change in interest rates boosted the dollar, instantly
achieving what the central banks had tried in vain to do for a
week through open market intervention.
    After Citibank raised its prime rate by a quarter-point to
7-3/4 pct, the first change in the rate since last August, the
dollar started to advance and reached a high in Tokyo of 147.50
yen, up two yen from Tuesday's New York low.
    By contrast, monetary authorities spearheaded by the Bank
of Japan are estimated to have bought as much as 10 billion
dlrs in the last 10 days of March but could not prevent the
dollar from skidding through 150 yen and plumbing a 40-year low
Monday of 144.70 yen. Some experts worry the central banks have
lost more than just a temporary battle to prop up the dollar.
The market is wary of being caught wrong-footed by a central
bank foray, but is no longer mesmerized.
    "They've lost their credibility. The market feels it can
take on the central banks and win," said Michael Snow, head of
treasury operations at Union Bank of Switzerland in New York.
    The relative failure of recent intervention stands in sharp
contrast to the success that central banks scored when they
joined forces to drive the dollar down following the September
22, 1985, Plaza accord.
    Then, however, central banks had an easy time of it,
because the markets and the Treasuries of the major industrial
powers were agreed that the dollar needed to head lower to
redress massive worldwide trade imbalances.
    Now, there is no such consensus. The market is saying that
the dollar must fall further because the U.S. trade deficit is
showing little sign of improvement, while Japan is resisting in
a bid to protect its export industries.
    For its part, the United States is apparently content to
let the dollar fall gradually further and is paying little more
than lip service to the February Paris agreement of the Group
of Five plus Canada to foster stability, dealers say.
    Specifically, they said the Fed's dollar-buying
intervention has been half-hearted, designed more as a
political gesture to Japan than to strike fear into the
markets. "It's been pro-forma intervention," said Francoise
Soares-Kemp, chief corporate trader at Credit Lyonnais.
    Because of this discord and the market's momentum for a
lower dollar, analysts said intervention looks doomed to fail.
    "It's going to take a lot more than the central banks to
hold the dollar (at these levels)," said Snow, who predicts
another 10 to 15 pct depreciation.
    "There have to be structural changes that occur to make the
market stop selling dollars," added "Buying six billion dollars
in three weeks is not going to do it."
    Late last decade during the presidency of Jimmy Carter,
when the dollar was last under heavy speculative attack,
central banks sometimes intervened to the tune of six billion
dlrs in a single day but still failed to stop the dollar
falling to a record low of 1.70 marks, analysts said.
    Snow said purchases on that scale now are unlikely. "I
don't think anybody has the stomach for it, because they saw
the futility of it in the seventies."
    Indeed, because the market has grown in leaps and bound
since then, intervention on an even greater scale would
probably be needed to impress the market.
    Trading volume in London, New York and Tokyo alone last
year averaged nearly 188 billion dlrs a day, according to a
joint central bank study, about double the previous estimate
made just two years earlier by the Group of Thirty private
research group.
    There are signs that central banks, too, realize the
futility of swimming against the tide.
    Bank of Japan sources told Reuters in Tokyo earlier this
week that they believed the limits of currency market
intervention are perhaps being reached and that other methods
for bolstering the dollar, such as invoking currency swap
agreements with other central banks, are being considered.
    "In this era of financial liberalization, it's almost
impossible to control the flow of capital in and out of Japan,"
one senior official in Tokyo said.


.I 366
.C
acq
.W
CANADIAN TIRE MAJOR HOLDERS NOT EXTENDING PACT.
    TORONTO, April 1 - CTC Dealer Holdings Ltd said <Canadian
Tire Corp Ltd> controlling shareholders Alfred, David and
Martha Billes did not extend an agreement expiring yesterday to
tender their shares only to CTC's previously reported offer for
49 pct of Canadian Tire common shares.
    CTC, which already holds 17.4 pct of Canadian Tire common,
said it would therefore not take up any shares tendered under
its offer unless they totaled at least 1.1 mln or another 32.7
pct of Canadian Tire common. The Billes control 60 pct of
Canadian Tire common. It added that it extended its offer to
May 11 at a fixed price of 165.36 dlrs a share.
    CTC, a group of Canadian Tire dealers, said it expected to
know by May 11 if it would obtain approval to appeal a
previously reported Ontario court ruling upholding a regulatory
decision to block CTC's offer.
    The dealers' bid was previously blocked by the Ontario
Securities Commission because the offer excluded holders of
Canadian Tire class A non-voting shares, which make up about 96
pct of company equity.


.I 367
.C
acq
.W
******HUTTON LBO EXTENDS EXPIRATION FOR 35 DLR/SHR OFFER FOR.
PUROLATOR TO APRIL 6 FROM TODAY

.I 368
.C
acq
.W
******CONRAC SAYS IT IS MULLING RESTRUCTURING OR BUYOUT AS.
ALTERNATIVES

.I 373
.C
dlr;money-fx;yen;
.W
CHIRAC SAYS FRANCE RESOLVED TO SUPPORT CURRENCY PACT.
    WASHINGTON, April 1 - French Prime Minister Jacques Chirac
said that on financial issues, the United States and France had
"very close" views, and he said Treasury Secretary James Baker
was determined to support the February 22 Paris agreement on
stabilizing foreign exchange parities.
    "I was very reassured by the determination of Mr. Baker to
support this agreement," he said.
    He described the dollar's sharp fall against the yen at the
start of the week as a "passing incident" and added, "Everyone is
resolved to support the Paris accord."
    Questioned about his plan to help the world's poorest
countries, Chirac said he did not envisage any large-scale debt
write-offs.
    "I don't think we can talk of write-offs - even the poorest
countries have not asked for that," he said.
    Chirac said he wanted commercial banks to give third world
countries better terms in rescheduling their debts, and for the
International Monetary Fund to soften its conditions.
    "One cannot pity the banks - they bear a lot of
responsibility due to the encouragement they gave to these
countries to take on debts. Now the banks are complaining but I
do not weep for them."


.I 374
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acq
.W
CONRAC <CAX> EXPLORING RESTRUCTURING, BUYOUT.
     WASHINGTON, April 1 - Conrac Corp, whose board has
rejected a 25 dlr a share tender offer from Mark IV Industries
Inc <IV>, said it is exploring alternatives such as a
restructuring, leveraged buyout or takeover of the company.
     In a filing with the Securities and Exchange Commission,
Conrac said its board of directors authorized its financial and
legal advisors to explore a several alternatives to the Mark IV
offer, which it said it considers inadequate.
    The alternatives being explored include a restructuring,
leveraged buyout or a takeover of the company by another
company, Conrac said.
    Conrac, which said its board discussed the alternatives at
special meetings on March 26 and 30, said that its decision on
whether to adopt any of the alternatives would hinge on "the
future actions of Mark IV" and its unsolicitied tender offer.
    Putting into effect any of the alternatives being explored
could hurt or defeat the Mark IV offer, it said.
    Board members were also instructed to keep confidential the
terms of any transaction that might be entered into until it
becomes final, the company said.
    The board also took other defensive steps, including
granting severance agreements to some officers, it said.
    At a board meeting yesterday, Concac's directors deleted a
provision allowing the holder of at least one-third of of all
classes of its voting stock to call a special shareholders
meeting and deleted another provision allowing shareholders to
remove directors without cause, the company said.
    The defensive moves were taken because Mark IV had said it
planned to elect a majority of its designees as directors at a
special holders meeting if it succeeded in acquring a majority
of the company's common stock in the offer, Conrac said.
    Conrac's president, vice president and treasurer were given
severance agreements, or "golden parachutes," it said.
    Under the agreements, Conrac President Paul Graf would get
a cash payment of twice his annual salary, which was 209,906
dlrs last year, if there were a change of control in the
company, including acquisition of 30 pct or more of the
company's voting stock, Conrac said.
    Treasurer Joseph Smorada and Vice President Joseph
O'Donnell, who made 143,325 dlrs last year, would get
one-and-a-half times his salary if there were a change in
control. Smorada's salary was not listed in the SEC filing.
    The executives would also get cash settlements of options
plans and continuation of insurance and other benefits.


.I 375
.C
interest
.W
MORE U.S. BANKS JOIN IN PRIME RATE CUT.
    NEW YORK, April 1 - Chemical Bank, the main bank subsidiary
of Chemical New York Corp, and Marine Midland Banks Inc said
they were raising the prime lending rate to 7-3/4 pct from
7-1/2 pct, effective immediately.
    In St Louis, Mercantile Bancorp said its Mercantile Bank
N.A. was also raising its prime rate to 7-3/4 pct from 7-1/2
pct, effective immediately.
    The changes follow similar cuts yesterday by Citicorp and
Chase Manhattan.


.I 377
.C
earn
.W
CONVEST ENERGY PARTNERS LTD <CEP> 4TH QTR LOSS.
    HOUSTON, April 1 -
    Shr loss 2.65 dlrs vs loss 2.31 dlrs
    Net loss 14.3 mln vs loss 12.5 mln
    Revs 2,887,000 vs 5,321,000
    Year
    Shr loss 4.38 dlrs vs loss 2.50 dlrs
    Net loss 23.7 mln vs loss 13.5 mln
    Revs 13.2 mln vs 22.4 mln
    NOTE: 1986 net includes oil and natural gas writedowns of
12.1 mln dlrs in quarter and 19.0 mln dlrs in year.


.I 378
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earn
.W
<DYLEX LTD> YEAR JAN 31 NET.
    Toronto, April 1 -
    Shr 51 cts vs one dlr
    Net 25.1 mln vs 46.8 mln
    Sales 1.21 billion vs 1.08 billion
    Note: 1986 excludes extraordinary gain of 1.1 mln dlrs, or
two cts per share, from public issue of affiliate's shares.


.I 380
.C
coffee
.W
ICO TALKS SET TO END WITH NO QUOTA DEBATE.
    LONDON, April 1 - The International Coffee Organization
executive board meeting will end tomorrow without any move to
reopen the debate on restoring coffee export quotas, delegates
said.
    Talks have focused on administrative matters and
verification of stocks in producer countries, they said.
    Producers met briefly today to exchange views on the market
situation but there seems little chance discussion on quotas
will begin much before the ICO's annual council session in
September, they said.
    Delegates earlier thought the meeting would end tonight,
but a further session is scheduled tomorrow at 1030 GMT to
complete reports on stock verification.
    Meantime, the executive board will meet May 12 to discuss
possible action on the consultancy report on the ICO presented
today to the board, consumer delegates said.


.I 381
.C
earn
.W
INTERNATIONAL SEAWAY TRADING CORP <INS> YEAR.
    CLEVELAND, Ohio, April 1 -
    Oper shr 64 cts vs 97 cts
    Oper net 845,000 vs 1,285,000
    Revs 20.0 mln vs 23 mln
    NOTE: 1986 and 1985 oper net excludes gain of 315,000 dlrs
and 585,000 dlrs, respectively, for extraordinary item.


.I 382
.C
earn
.W
CALLON PETROLEUM CO <CLNP> 4TH QTR LOSS.
    NATCHEZ, Miss., April 1 -
    Shr loss 40 cts vs loss 4.72 dlrs
    Net loss 3,321,000 vs loss 42.0 mln
    Revs 4,002,000 vs 7,788,000
    Avg shrs 9,168,522 vs 8,974,355
    Year
    Shr loss 4.20 dlrs vs loss 4.71 dlrs
    Net loss 37.2 mln vs loss 41.1 mln
    Revs 18.4 mln vs 34.1 mln
    Avg shrs 9,168,522 vs 8,991,184


.I 383
.C
earn
.W
COUNTY SAVINGS BANK <CSBA> SETS STOCK DIVIDEND.
    SANTA BARBARA, Calif., April 1 - County Savings Bank said
its board declared a five pct stock dividend, payable April 10
to shareholders of record today.


.I 384
.C
acq
.W
E.F.HUTTON <EFH> EXTENDS PUROLATOR <PCC> OFFER.
    New York, April 1 - E.F. Hutton Group's E.F. Hutton LBO Inc
unit said it extended the expiration date for its 35 dlr per
share tender offer for Purolator Courier corp to midnight EST
April six from midnight April one.
    E.F. Hutton lbo inc said its wholly owned PC Acquisition
Inc subsidiary, which is the entity making the offer, extended
both expiration date and the withdrawal rights period for its
pending tender for 6.3 mln shares or 83 pct of Purolator
common.
    Hutton's offer was topped today by a 40 dlr per share bid
for 83 pct of the stock from Emery Air Frieght Corp <EAF.>
    Both offers would pay shareholders a package of securities
for the balance of their shares, valued at the respective
tender offer prices.
    Hutton said as of the end of the day yesterday, about
880,000 shares of Purolator common stock repesenting 11.5 pct
of outstanding shares had been validly tendered and not
withdrawn.
    Manhattan supreme court justice Lewis Grossman today
adjourned until Monday a hearing on a stockholder suit seeking
to block the Hutton LBO transaction. The judge told attorneys
he needed time to hear other cases.
    Plaintiffs cited their belief that a superior offer would
be forthcoming, however one company mentioned in an affadavit,
Interlink Express plc, denied that it was interested.
    Yesterday, Frank Hoenemeyer, a retired vice chairman of
Prudential Insurance Co and currently a Purolator board member,
said an initial offer from Hutton was rejected by the board of
directors February third.
    Hoenemeyer testified that by the next meeting of the board,
February 17, Hutton submitted a revised proposal which was
accepted.
    He also testified a committee of directors had hired
Goldman Sachs and Co to consider alternatives to the Hutton
offer and also to consider a discussion of possible mergers
with other companies including Emery and Federal Express Corp
<FDX>.


.I 387
.C
earn
.W
BANKAMERICA <BAC> TO POST GAIN ON UNIT SALE.
    SAN FRANCISCO, April 1 - BankAmerica Corp said it completed
the sale of its Consumer Trust Services division to Well Fargo
and Co <WFC>, a transaction that will result in a second
quarter pre-tax gain of more than 75 mln dlrs.
    The sale will not affect the services the bank will
continue providing to institutional customers through its
Employee Benefit Trust Services Division, BankAmerica also
said.
    In a separate announcement, Wells Fargo said the
acquisition will increase the amount of personal trust assets
it administers to 25 billion dlrs.
    Last December BankAmerica and Wells Fargo announced a
definitive agreement on the sale at a price of about 100 mln
dlrs, subject to adjustment.


.I 388
.C
oilseed;grain;corn;soybean;sunseed;
.W
HEAVY RAINS DAMAGE ARGENTINE COARSE GRAINS CROP.
    By Manuel Villanueva
    BUENOS AIRES, April 1 - Fresh, heavy rains caused further
damage to the Argentine 1986/87 coarse grains crop in the week
to yesterday, particularly in Buenos Aires province, trade
sources said.
    They said the sunflower, maize, soybean and sorghum crops
were damaged and yield estimates affected. New production
forecasts were made for all these crops.
    The rains over the weekend and up to yesterday registered
more than 200 mm on average in western Buenos Aires and
worsened the flooding in various parts of the province.
    The weather bureau said the rains, which in Buenos Aires
have surpassed 750 mm in the last 30 days, could continue.
    The northeast of the country was also hit by heavy rains.
    In Corrientes province the rains also passed an average of
200 mm in some parts, notably the Paso de los Libres area
bordering on Uruguay.
    In Santa Fe and Entre Rios provinces they were over 100 mm
in places, in Misiones and San Luis 90 mm and in Cordoba 80 mm.
    The rains were less intense in Chaco and Formosa.
    Harvesting in areas not actually under water could also be
further delayed due to dampness in the earth, the sources said.
    The excessive humidity might also produce rotting of the
crops, further dimishing the yield, the sources added.
    Sunflower harvesting before the weekend rains reached 26 to
30 pct of the area sown in Santa Fe, Cordoba, La Pampa and
Buenos Aires provinces.
    The production forecast for 1986/87 sunflowerseed has been
lowered to between 2.2 and 2.4 mln tonnes, against 2.3 to 2.6
mln tonnes the previous week, making it 41.5 to 46.3 pct lower
than the record 4.1 mln tonnes produced last season.
    The area sown was two to 2.2 mln hectares, down 29.9 to
36.3 pct on the record 3.14 mln hectares in 1985/86.
    The maize harvest advanced to within 26 to 28 pct of the
area sown in Cordoba, Santa Fe and northern Buenos Aires. It
will begin in La Pampa within about 10 days, weather
permitting.
    Maize yield this season is now estimated at 9.6 to 9.9 mln
tonnes, against last week's 9.9 to 10.1 mln tonnes, down 21.4
to 22.6 pct on the 12.4 to 12.6 mln tonnes at which private
producers put 1985/86 production.
    The new forecast is 22.7 to 25 pct down on the official
figure of 12.8 mln tonnes for last season's production.
    The grain sorghum harvest reached 17 to 19 pct of growers'
targets, against 14 to 16 pct the previous week.
    The production forecast was reduced to between three and
3.3 mln tonnes, against 3.2 to 3.5 mln tonnes last week, 21.4
to 26.8 pct down on last season's 4.1 to 4.2 mln tonnes.
    The area sown with sorghum in 1986/87 was 1.23 to 1.30 mln
hectares, down 10.3 to 15.2 pct on the 1.45 mln in 1985/86.
    The forecast for soybean yield this season was the least
changed in relation to last week. It was put at a record 7.5 to
7.7 mln tonnes, against the previous 7.5 to 7.8 mln tonnes.
    These figures are 4.2 to 5.5 pct higher than last season's
record of 7.2 to 7.3 mln tonnes, according to private sources,
and 5.6 to 8.5 pct up on the official 7.1 mln tonnes.
    The adjustment to the production forecast is due to the
rains and overcast conditions which have greatly reduced the
sunlight needed for this crop, sources said.
    Producers fear estimates may yet have to be adjusted down
further.
    The humidity could induce rotting and growers are still
finding more empty pods due to excessively dry weather earlier
in the season.
    Soybean harvesting is due to start in mid-April in southern
Cordoba and Santa Fe and northern Buenos Aires.


.I 389
.C
ship;grain;
.W
LONDON GRAIN FREIGHT ENQUIRIES.
    LONDON, April 1 - Rio Grande/Azores and Leixoes 26,000 mt
hss 14 dlrs basis one to two 4,000/1,500 Azores and 3,500
Leixoes 25/4-5/5.
    Paranagua/one-two ports Spanish Med 35,000 mt hss 11.50
dlrs basis one to one 10 days all purposes 20-30/4.
    USG/Taiwan 54,000 mt hss 10,000 shex/4,000 shex 20/4-5/5.
    USG/ARA-Ghent option Seaforth 40,000/45,000 long tons hss
10 days all purposes 9-15/4 try later.
    Dieppe/one-two ports Italian Adriatic 9,500/11,000 mt bulk
wheat 3,000/2,000 6-12/4.
    St Lawrence/one-three ports Marseilles-Manfredonia range
20,000/35,000 mt bulk wheat 5,000/222,500 10-15/4.
    Chimbote/Kaohsiung 9,500 mt bulk/bagged fishmeal 250 ph/200
ph 20/4-5/5.
    Immingham or Foynes/Red Sea 25,000 mt bulk barley
4,000/3,000 10-15/4 alternatively try t/c.
    USG/Maracaibo 10,000 mt wheat (three grades) three
days/1,000 1-15/4.


.I 390
.C
ship
.W
LONDON METAL FREIGHTS.
    LONDON, April 1 - Enquiries - Rotterdam/Karachi
20,000/21,000 mt shredded scrap 7,000/1,100 15-30/4.
    Bin Qasim/Shanghai 25,000 mt pig iron 1,500 fhex/1,200 shex
1-10/4.
    Chungjin/Manila 4,200 mt steel coils 800/liner discharge
23-30/4.
    Bilbao/one port Vietnam 5,000 mt steels fio 1,000/500 end
April
    Singapore/Mizushima 6,000/10,000 mt steel scrap fiot
1,200/3,00 2-12/4.


.I 391
.C
earn
.W
CIRO INC <CIRI> YEAR.
    NEW YORK, April 1 -
    Shr loss three cts vs profit 16 cts
    Net loss 119,000 vs profit 637,000
    Revs 17.5 mln vs 15.8 mln


.I 392
.C
ship
.W
LONDON ORE ENQUIRIES/FIXTURES.
    LONDON, April 1 - Enquiries - South Africa/Salvador, Brazil
15,000 long tons manganese ore 2,500/1,500 end April.
    Callao/Crotone 5,000 mt minerals 4,000/2,000 spot.
    Geraldton/Tampico 13,500 mt bulk mineral sands fio
10,000/2,000 1-10/5.
    Itea/Dunkirk 20,000 mt bauxite seven days all purposes
10-13/4.
    Tampico/North Spain 15,000 mt ore two days shinc/3,000 shex
5-25/4.
    One port German North Sea/USG 10,500 mt bulk ore
2,500/4,000 7-13/4.


.I 394
.C
earn
.W
HELM RESOURCES INC <H> 4TH QTR LOSS.
    NEW YORK, April 1 -
    Oper shr loss two cts vs loss 13 cts
    Oper net loss 236,000 vs loss 1,131,000
    Revs 26.6 mln vs 26.3 mln
    Year
    Oper shr profit two cts vs loss 15 cts
    Oper net profit 286,000 vs loss 1,292,000
    Revs 105.3 mln vs 95.3 mln
    NOTE: Net excludes discontinued operations gain 20,000 dlrs
vs loss 1,291,000 dlrs in quarter and gain 60,000 dlrs vs loss
1,590,000 dlrs in year.
    Net excludes extraordinary loss 38,000 dlrs vs gain
1,941,000 dlrs in quarter and gains 162,000 dlrs vs 1,941,000
dlrs in year.
    1986 net both periods includes writedowns of 290,000 dlrs
of oil-related seismic data.


.I 397
.C
earn
.W
<SASCO PRODUCTS INC> YEAR LOSS.
    DALLAS, April 1 -
    Shr loss eight cts vs profit four cts
    Net loss 365,430 vs profit 165,508
    Revs 5,577,244 vs 4,643,803
    NOTE: 1986 net includes nonrecurring expenses of 408,518
dlrs.


.I 399
.C
acq
.W
AUSIMONT COMPO <AUS> SELLS UNIT.
    WALTHAM, Mass., April 1 - Ausimont Compo NV said it has
sold the assets of its Equipment and Machinery Division for
about six mln dlrs to an investment group including the unit's
management, resulting in a modest pretax gain that will be
included in first quarter results.
    The unit had sales of five mln dlrs in 1986.


.I 400
.C
acq
.W
ATLANTIC RESEARCH <ATRC> COMPLETES ACQUISITION.
    ALEXANDRIA, Va., April 1 - Atlantic Research corp said it
has completed the acquisition of professional services firm ORI
Group for 1,414,313 common shares on a pooling of interests
basis.


.I 401
.C
acq
.W
PEABODY HOLDING COMPLETES ACQUISITION.
    ST. LOUIS, April 1 - <Peabody Holding Co Inc> said it has
completed its acquisition of substantially all Eastern Gas and
Fuel Associate's <EFU> coal properties for 15.01 pct of Peabody
Holding's stock.
    Peabody said the purchase includes seven underground mines
and seven coal preparation plants currently operated by
Eastern, as well as coal properties being mined by several
contractors in West Virginia.
    The acquisition also involves about 800 mln tons of coal
reserves, mostly in West Va., and includes Eastern's coal
reserves and inactive Powderhorn operations near Palisade,
Colo, Peabody said.
    Peabody added that it expects to announce within the next
week how it will staff and operate the properties and offices
it has acquired from Eastern.


.I 402
.C
ship;sugar;
.W
LONDON SUGAR FREIGHTS.
    LONDON, April 1 - ENQUIRIES - Delfzyl/India 14,700 mt
bagged sugar about 30 dlrs 750/1,000 ppt a/c Benham.
    Antwerp/Lagos 12,000 mt bagged sugar 750/750 try liner
discharge 5-20/4 a/c E D and F Man.
    T/C single or tweendecker 16,000/19,000 tonnes dw del
Queensland mid-April/early-May for trip with bulk sugar redel
China duration about 30 to 40 days a/c Kawasaki.
    One port A-H range/Dubai 6,800 mt bagged sugar 750/750
10-15/4 a/c unnamed charterer.
    enquiries - Rouen-Hamburg/India 14,000 mt bagged sugar
750/1,000 15-25/4 a/c Woodhouse, Drake and Carey.
    Flushing/Hodeidah and Mokha 16,800 mt bagged sugar 750/750
9-15/4 Genoc.
    Santos/Hodeidah 10,000 mt bagged sugar about 30 dlrs
750/750 20-30/4 a/c Dutch charterer.
    Cargill is reported to have withdrawn its enquiries for
cargoes from South Korea to India, from Constanza to India and
from Buenaventura to the U.S.


.I 404
.C
earn
.W
PENTA SYSTEMS INTERNATIONAL INC <PSLI> 4TH QTR.
    NEW YORK, April 1 -
    Shr loss six cts vs loss 76 cts
    Net loss 343,748 vs loss 4.0 mln
    Revs 5.1 mln vs 4.8 mln
    Year
    Shr profit 12 cts vs loss 1.45 dlr
    Net profit 611,784 vs loss 7.7 mln
    Revs 21.6 mln vs 19.7 mln


.I 405
.C
money-fx
.W
******FED SAYS IT BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER, MAY.
THROUGH SEPT 24 MATURITY

.I 406
.C
acq
.W
CHIRAC SEES QUICK DECISION ON CGCT.
    WASHINGTON, April 1 - French Prime Minister Jacques Chirac
told U.S. congressmen France would announce a decision in two
to three weeks on which group is to control its second largest
communications firm, Compagnie Generale de Construction
Telphoniques, French sources said.
    They said Chirac promised that France's decision would be
based on financial, economic and technical criteria, and not on
political grounds.
    U.S. and German companies are the leading contenders to
take control of CGCT.
    The Reagan administration has warned France and Germany
that it may retaliate if control of the company is awarded on
political grounds.
    Jacques Delors, President of the European Community's
Executive Commission, called last month for control to go to
West Germany's Siemens AG in order to strengthen European
industry.
    The other leading contender is a consortium of American
Telephone and Telegraph Co <T> with Philips NV of the
Netherlands.
    Chirac said France would make public its reasons for
awarding control, the sources said. He was asked about the
company's fate on two occasions, in meetings with leaders of
the Senate and House of Representatives.


.I 407
.C
ship
.W
AGENCY REPORTS 41 SHIPS WAITING AT PANAMA CANAL.
    WASHINGTON, April 1 - The Panama Canal Commission, a U.S.
government agency, said in its daily operations report that
there was a backlog of 41 ships waiting to enter the canal
early today. Over the next two days it expects --              
             4/01  4/02
                       Due: 34    34
      Scheduled to Transit: 41    39
           End-Day Backlog: 34    29

    Average waiting time tomorrow --
         Super Tankers  Regular Vessels
 North End:  25 hrs      11 hrs
 South End:  24 hrs      31 hrs


.I 410
.C
earn
.W
CONTROL RESOURCE INDUSTRIES INC <CRIX> 4TH QTR.
    MICHIGAN CITY, Ind., April 1 -
    Shr loss five cts vs profit eight cts
    Net loss 152,000 vs profit 214,000
    Revs 6.2 mln vs 2.4 mln
    Year
    Shr profit 22 cts vs profit 33 cts
    Net profit 809,000 vs 853,000
    Revs 22.4 mln vs 7.9 mln


.I 411
.C
money-fx;interest;
.W
FED BUYS 550 MLN DLRS OF BILLS FOR CUSTOMER.
    NEW YORK, April 1 - The Federal Reserve bought about 550
mln dlrs of U.S. Treasury bills for a customer, a spokeswoman
said.
    She said the Fed bought bills maturing from May through
September 24 for regular delivery tomorrow.
    Federal funds were trading at 6-3/16 pct when the Fed
announced the operation.


.I 412
.C
earn
.W
AMERICAN WATER WORKS CO INC <AWK> SETS PAYOUT.
    WILMINGTON, Del., April 1 -
    Qtly div 32 cts vs 32 cts prior
    Pay May 15
    Record May One


.I 413
.C
earn
.W
HUNT MANUFACTURING CO <HUN> SETS PAYOUT.
    PHILADELPHIA, April 1 -
    Qtrly div 11 cts vs 11 cts
    Pay April 21
    Record April 10


.I 414
.C
acq
.W
ITEL <ITEL> BUYS CASTLE/COOKE <CKE> UNIT ASSETS.
    CHICAGO, April 1 - Itel Corp said it has completed the
previously-announced acquisition of the container fleet and
related assets of Castle and Cooke Inc's Flexi-Van Leasing Inc
subsidiary for about 130 mln dlrs in cash and marketable
securities, 30 mln dlrs in notes, three mln common shares and
the assumption of liabilities.
    The company said it has obtained 150 mln dlrs in financing
from a bank group for the deal, and the common shares are
subject to a 10-year restriction on their sale and voting.


.I 415
.C
earn
.W
PITTSBURGH AND WEST VIRGINIA RAILROAD <PW> NET.
    PITTSBURGH, April 1 - 4th qtr
    Shr 14 cts vs 14 cts
    Net 210,000 vs 211,000
    Revs 230,000 vs 229,000
    Year
    Shr 56 cts vs 56 cts
    Net 838,000 vs 841,000
    Revs 919,000 vs 919,000


.I 419
.C
acq
.W
DYNALECTRON <DYN> BUYS AVIATION FACILITY.
    MCLEAN, Va, April 1 - Dynalectron Corp said it purchased
certain assets of Standard Aero Inc including leasehold rights
to its aircraft modification and maintenance facility in
Phoenix, Ariz.
    Terms were not released.
    The facility consists of 285,000 square feet of hangar and
shop space. Dynalectron will operate the plan as Dynair Tech
Inc and is offering continued employment to about 460 former
standard Aero employees.


.I 420
.C
oilseed;wheat;grain;soybean;
.W
U.S. FARM REORGANIZATIONS PROVING COSTLY - GAO.
    WASHINGTON, April 1 - U.S. farmers who reorganize their
operations to circumvent a cap on federal payments could add
2.3 billion dlrs to the cost of the government's agricultural
programs by 1989, the General Accounting Office, GAO, said.
    "We estimate that should the trend in farm reorganizations
continue, reorganizations since 1984 could be adding almost 900
mln dlrs annually to program costs by 1989," GAO Senior
Associate Director Brian Crowley said.
    "Cumulative costs for the six-year period, 1984 to 1989,
could approach 2.3 billion dlrs," he said.
    Between 1984 and 1986, reorganizations added almost 9,000
new persons to U.S. Agriculture Department payment rolls,
Crowley told the House Agriculture Subcommittee on Wheat,
Soybeans and Feedgrains.


.I 423
.C
acq
.W
TALKING POINT/PUROLATOR COURIER <PCC>.
    By Patti Domm, Reuters
    New York, April 1 - Emery Air Freight Corp topped a
leveraged buyout offer for Purolator Courier Corp by about 40
mln dlrs, but Wall Street is reacting as though another offer
may surface.
    Purolator's stock climbed 5-3/8 today, to 40-1/8, 1/4 over
Emery's 40 dlr per share offer. Emery topped a 35 dlr per share
or 268 mln dlr offer from E.F. Hutton LBO Inc.
    Some analysts said the latest, 306 mln dlr offer for
Purolator exceeded their expectations.
    Several analysts previously had said they saw takeover
values for the package delivery company in the 35 dlr per share
range. At least one, however, estimated the company could be
taken over in a range of 38 to 42 dlrs per share.
    Analysts today would not venture to say whether another
offer could be made, but some arbitragers still held to the
belief that the bidding could go higher.
    "They have no choice to seek out the best possible offer.
Emery has shown the courage to go forth," said one arbitrager,
who speculated other courier companies may also emerge as
bidders.
    "It makes sense," said James Parker of Robinson Humphrey.
But "It won't make out as well as they think. They won't get a
100 pct of the synergies."
    Analysts said the acquisition could cost Emery earnings in
the short term, but long term, after eliminating redundancies
and selling other Purolator assets, it should boost Emery's
profitability.
    Parker said a combined Purolator and Emery would rival
United Parcel Service as the second largest U.S. package
delivery company after Federal Express Corp <FDX>, which has 47
pct of the market.
    Parker speculated that the combined Emery-Purolator would
have about 24 pct of the six to seven billion dlr delivery
business.
    "This will make Emery a bigger factor in the light weight
(delivery) business, but it will not make them a power house,"
said Douglas Arthur of Kidder, Peabody and Co.
    Purolator today declined comment on the Emery offer, and
its chairman Nicholas Brady did not return a phone call.
    E.F.Hutton LBO also declined comment on the Emery offer,
but said it extended the expiration and withdrawal period on
its offer to April six at midnight from today at midnight EST.
    One analyst speculated the extension makes it more likely
Hutton will attempt another offer. However, he was skeptical a
company outside the package delivery industry would want to
outbid 40 dlrs per share because it would not have the same 
synergies as a courier company.
    Since Purolator agreed in late February to a buyout by some
of its management and the E.F. Hutton Group <EFH> subsidiary,
speculation has arisen that more bidding was to come.
    The buyout was surrounded by controversy since a Purolator
board member, Doresy Gardner resigned in March. Gardner said he
believed a better offer could be made by another entity.
    A spokesman for Gardner today said the former director had
no contact with Emery, nor did he have any other buyers lined
up for Purolator.
    Purolator's deal with Hutton was also called into question
by a shareholder suit filed earlier this week, which attempted
to stop the tender offer to allow another bidder to come forth.
Hearings in a New York state court were delayed until Monday.
    Arbitragers had said they believed the Hutton offer could
be bettered because the Wall Street firm was not planning to
keep its cash tied up in Purolator. Hutton is providing a 279
mln dlr "bridge" loan that would later be replaced with other
debt. Hutton would maintain a majority interest in Purolator.
    Hutton sources have said the firm was in fact facing risk n
its investment since it did not know when it could reclaim its
279 mln dlr loan.
    Emery last year lost 5.4 mln dlrs on revenues of 887.5 mln
dlrs. Purolator lost 57.6 mln dlrs on 841.4 mln dlrs in
revenues.


.I 425
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interest
.W
CANADIAN IMPERIAL BANK LOWERING VISA RATES.
    TORONTO, April 1 - <Canadian Imperial Bank of Commerce>
said it was lowering the interest rate on its Visa credit card
to 15.9 pct from 18.6 pct, effective with the May billing
statement.
    The bank said it was also halving its yearly Visa card user
fee to six dlrs, but would retain its 15 ct fee for each
transaction.
    A bank spokesman said the previously reported call by the
Canadian Parliament's finance committee on March 20 for a
substantial cut in credit card rates "was a factor" in the
move, but he would not elaborate.
    Canada's minister of state for finance Thomas Hockin had
threatened legislation to reduce the rates, which apply to
unpaid balances, if the financial institutions did not
voluntarily act.
    The Canadian Imperial Bank spokesman said "the bank card
market is a very competitive one and we have to move to stay
competitive."
    Canadian Imperial's new rates match those of <Toronto
Dominion Bank>, which lowered its rates before the finance
committee report.
    Canadian Imperial Bank added that cardholders will be
allowed to choose between the 15 ct transaction fee or the six
dlr yearly card fee.
    It will also eliminate the 50 ct minimum monthly
transaction fee, it said.
    Minister of State for Finance, Tom Hockin, said in the
House of Commons today he was "delighted" with the bank's cut
in its credit card rate.
    "I would hope retail stores and other financial
institutions will look to their rates as well," Hockin said
during the daily question period.


.I 429
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earn
.W
NISSAN MOTOR <NSANY> SEES SECOND HALF PROFIT.
    NEW YORK, April 1 - Nissan Motor Co Ltd of Japan said it
expects that it was profitable in the second half ended
yesterday after a first half operating loss of 17 billion yen.
    Nissan chief financial officer Atsushi Muramatsu, in a
speech before an automotive seminar, said he attributed the
improvement to cost reductions and rationalizations of
operations.
    He said if exchange rates stabilize, Nissan will have a
strong profit recovery in fiscal 1988 and profits for fiscal
1989 better than those before the yen started advancing.
    Muramatsu said Nissan is studying the possibility of
setting up its own finance company to improve access to U.S.
and European capital markets.


.I 430
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earn
.W
GEOFFRION LECLERC FORECASTS RESULTS.
    MONTREAL, April 1 - (Geoffrion Leclerc Inc), in reporting
sharply higher earnings for the six months ended February 28,
said it expects third quarter results to continue at a strong
pace and approximate the preceding quarters.
    The brokerage firm earlier reported six month profit rose
to 3.5 mln dlrs from 1.9 mln dlrs last year. It did not detail
second quarter profit.


.I 431
.C
acq
.W
WALL STREET STOCKS/POLAROID <PRD>.
    NEW YORK, April 1 - Rumors that New York investor Asher
Edelman has acquired a stake in Polaroid Corp and optimism
about tomorrow's status hearing on the patent infringement suit
pending with Eastman Kodak Co <EK> sent Polaroid's stock
higher, traders said.
    Polaroid rose 1-1/8 to 74-1/2.
    "Speculation that Edelman was going to take a stake in
Polaroid was kicking around a few months ago, and resurfaced
today," one trader said.
    Edelman had no comment on the rumors.
    A spokesman for Polaroid said the company had not been
contacted by Edelman and no filing had been made with the
Securities and Exchange Commission about a stake in the
company.
    "There is some hope among investors that there will some
progress in the status hearing tomorrow on the patent
infringement suit with Kodak," analyst Michael Ellmann of
Wertheim and Co said.
    Traders said it is conceivable that a trial date could be
set or some progress made on an out-of-court settlement.
    The suit, filed by Polaroid in April 1976, charges that
Kodak infringed upon Polaroid's instant camera patent. In
October 1985, the court barred Kodak from selling cameras or
film that infringe upon the patent, the Polaroid spokesman
said.
    Ellmann said he feels it is highly unlikely that any
progress will be made in tomorrow's hearing.
    Ellmann said the stock may have also gotten a boost today
from some optimism concerning new products the company is
currently working on.
    "Polaroid's announcement that a particularly senior company
executive had been chosen to work on a major unidentified new
product spurred some speculation about their products," he
said. "I am speculating that the new product could be an
electronic still camera," referring to a camera that records
its images on magnetic disks as opposed to conventional film.
    Ellmann said the stock may have also gotten a boost today
from some optimism concerning new products the company is
currently working on.
    "Polaroid's announcement that a particularly senior company
executive had been chosen to work on a major unidentified new
product spurred some speculation about their products," he
said. "I am speculating that the new product could be an
electronic still camera," referring to a camera that records
its images on magnetic disks as opposed to conventional film.


.I 432
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earn
.W
KAUFMAN AND BROAD INC <KB> 1ST QTR FEB 28 NET.
    LOS ANGELES, April 1 -
    Shr 41 cts vs 17 cts
    Net 8,824,000 vs 4,555,000
    Revs 301.9 mln vs 196.4 mln
    Avg shrs 17,644,000 vs 16,085,000


.I 433
.C
acq
.W
ITEL <ITEL> COMPLETES FLEXI-VAN ACQUISITION.
    CHICAGO, April 1 - Itel Corp said it completed the
previously announced purchase of the container fleet and
certain related assets of Flexi-Van Leasing Inc for about 130
mln dlrs cash and marketable securities, 30 mln dlrs in notes,
three mln shares of newly issued Itel common and assumption of
certain liabilities.
    The company said it obtained financing from a syndicate of
major banks for 150 mln dlrs.


.I 435
.C
earn
.W
KAUFMAN AND BROAD INC <KB> 1ST QTR FEB 28 NET.
    LOS ANGELES, April 1 -
    Shr 41 cts vs 17 cts
    Net 8,824,000 vs 4,555,000
    Revs 301.9 mln vs 196.4 mln
    NOTE: Housing backlog 135 mln dlrs, up over 33 pct from a
year earlier.


.I 436
.C
coffee
.W
NY ANALYSTS SEE COFFEE FUTURES FALLING FURTHER.
    New York, April 1 - New York coffee futures prices will
probably fall to about 85 cents a lb in the next month before a
consolidation trend sets in, according to market analysts.
    Yesterday, prices for the spot May contract fell below 1.00
dlr a lb for the first time since August 1981 after the
International Coffee Organization did not place new export
quota discussions on its current agenda.
    Talks aimed at renegotiating ICO export quotas, after five
years of price-supporting agreements, broke down in February.
    "Short-term, it looks like a definite test of 90 cents,
perhaps 85 cents," said William O'Neill, coffee analyst with
Elders Futures. "But the additional downside may not be all
that great from current levels."
    "At this price level the market is very vulnerable to
bullish developments," O'Neill added. "Rather than us having a
market that will plummet we'll kind of see prices erode --
probably to around 85 cents."
    "I definitely see 90 cents and would not rule out a brief
drop to 85 cents," said Debra Tropp, a coffee analyst with
Prudential Bache. But she said by June worries about a freeze
in Brazil growing areas will become more of a market factor,
with prices likely to consolidate ahead of that time.
    A trader at a major international trade house, who asked
not to be named, said he expects a 10 cent drop near term but
believes if Brazil opens May registrations at a relatively high
export price and requires a high contribution quota from
exporters the market could steady at the lower levels.
    Longer term, he added, producer pressure will mount on
Brazil to agree to consumers' export quota terms, and a new
international agreement could come into force next fall.
    Since the February talks broke down, the market has fallen
from about 130.00 cents a lb to a low of 98.10 cents a lb
today, as buyers and sellers sought to reassess supply and
demand.
    Generally, analysts say, producers have a large buildup of
stocks, but U.S. roasters have drawn down supplies and will
need to do some buying soon.
    "Most producing nations have just completed or are about to
complete their annual harvests and exportable supplies are at
their seasonal peak. Exports remain behind year ago and
warehouses in producer nations are becoming increasingly
overburdened," said Sandra Kaul, coffee analyst for Shearson
Lehman, in that firm's forthcoming quarterly coffee report.
    Kaul said producers' need to procure hard currency to
service foreign debt will put further pressure on them to sell,
and "this should keep substantial pressure on exporters to
undertake sales despite the drop in prices to six year lows."
    Kaul believes the market will drop to 80 cents a lb before
Brazil's frost season begins in June.
    Accurate assessments of roaster demand are hard to come by,
though analysts note the peak winter consumption period is
passed and demand usually slows this time of year.
    Shearson's Kaul estimated U.S. roaster ending stocks as of
January 31, including soluble and roasted, at 6.3 mln bags
compared with 6.9 mln at end-September 1986, a small drawdown
for the usually busy winter roasting season.
    But Elders O'Neill said, "The roasters are not overstocked
by any means."
    Analysts said picking a bottom to the market is difficult,
given the fact prices have fallen into uncharted territory
below the long-term support at 1.00 dlr per lb, and several
traders said the sidelines might be preferable for the short
term.


.I 437
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gas
.W
ENERGY/U.S. REFINING.
     By BERNICE NAPACH, Reuters
     NEW YORK, April 1 - U.S. refiners said they are worried
that growing supplies of imports, proposed federal
environmental regulations, and the marketing of a third grade
of unleaded gasoline would cost them dearly and at a time when
the industry is recovering from a recent slump.
     "We have to look at national security and cut the amount
of products and crude coming into the country if it hurts the
industry," said Archie Dunham, vice president of petroleum
products at Conoco, subsidiary of DuPont Corp (DD).
    U.S. oil imports account for about 38 pct of U.S.
consumption but are expected to rise to 50 pct by the mid
1990s, according to the Department of Energy.
    "Can we afford to import 60 or 70 pct of our oil
requirements 15 or so years from now?" asked John Swearingen,
chairman of the board of Continental Illinois Corp <CIL> and
former chief executive of Amoco Corp <AN>. "If your answer to
that question raises doubt, then it behooves us to do all that
we can now to cope with this situation and improve our
position."
    But Swearingen said he opposed the idea of an import fee, a
view echoed by others attending this week's National Petroleum
Refiners Association meeting in San Antonio, Texas.
    "Talk of an import surcharge or controls is not encouraging
because those things won't solve our problems and could well
compound them," said Swearingen. "Once the government affects
values, once an import quota or license has value, it's going
to be subverted by government," he added.
     William Martin, deputy Energy Secretary, said the costs of
an import fee outweigh its benefits and suggested, as Energy
Secretary John Herrington has, depletion tax credits to
encourage domestic production and limit oil imports. He also
said altnerative energy sources should be encouraged.
     Restoration of the depletion allowance for a 27 pct
deduction from the taxable income of oil companies is 
controversal but might work, said Dunham.
    Dunham and other officials opposed the idea of a fee on oil
imports but said if one is enacted it must tax crude and
product imports.
    "Why would companies import crude when they could import
products for a smaller cost if there were only a fee on crude?"
asked Henry Rosenberg, chairman of Crown Central Petroleum
<CNP>.
     An import fee would raise the costs of U.S. petrochemical
products and make them noncompetive on the world market, Dunham
said.
     "The energy security issue should be considered when
environmental issues are considered," Martin said.
    "The level of investment for the proposed lowering of
sulfur level of diesel to 0.05 pct by weight, for example, is
unacceptable," Dunham said. "Most companies cannot afford it."
    George Unzelman, president of HyOx, Inc., said these
proposals "will place pressure on small refining operations and
promote further industry consolidation."
     An NPRA survey of of 139 refineries, which was released at
the conference, said reducing sulphur content to 0.05 pct
weight and aromatics to 20 volume pct aromatics in highway
diesel fuel would cost refiners 6.65 billion dlrs.
     The national average diesel fuel sulfur content in 1986
for the survey respondents was 0.27 weight pct while the
average aromatics content was 32 pct.
     Another possible cost to refiners is the upgrading of
facilities to produce a third grade of unleaded gasoline which
is beginning to be marketed by some companies.
    "What will be the standard octane level in various grades
of unleaded gasoline?" asked Dunham. "A midlevel grade of
unleaded gasoline with an octane level of 89 means an
investment has to be made," Dunham said.
     This grade is not warranted, said Crown's Rosenberg.
     Despite these concerns, refiners are expecting margins to
move higher in the next few months.
     "We are beginning to see a return in wholesale margins,"
said Roger Hemminghaus, chairman of the refining and marketing
company that is to spin off from Diamond Shamrock Corp <DIA>.
     Margins are higher because the OPEC pact is holding, U.S.
stocks of gasoline and heating oil are declining, and gasoline
demand is rising as the driving season approaches, he said.
     "This summer could be a good season for selling gasoline,"
Hemminghaus said, adding that the new company will be primarily
a gasoline producer.


.I 439
.C
earn
.W
CSX CORP <CSX> 1ST QTR NET.
    RICHMOND, Va, April 1 -
    Shr 47 cts vs 56 cts
    Net 73.0 mln vs 85.0 mln
    Revs 1.89 billion vs 1.69 billion
    NOTE: figures reflect the merger of Sea-Land Corp completed
Feb 11, 1987.


.I 441
.C
acq
.W
WALL STREET STOCKS/LORAL CORP <LOR>.
    NEW YORK, April 1 - Loral Corp climbed 3-3/4 to 48-3/4 amid
rumors the company might be a takeover target of General
Electric Co <GE>. However, analysts said they were skeptical.
    "Jack Welch doesn't want any more exposure to defense
markets," said one analyst who heard the rumors but doubted
their accuracy. The reference was to GE's chairman.
    The analyst, who requested anonymity, said, "I wouldn't
believe this one unless there's a deal on the table."
    Loral Corp officials were not immediately available for
comment.


.I 443
.C
copper
.W
MAGMA LOWERS COPPER PRICE 0.25 CT TO 65.50 CTS.
    NEW YORK, April 1 - Magma Copper Co, a subsidiary of
Newmont Mining Corp, said it is lowering its copper cathode
price by 0.25 cent to 65.50 cents a lb, effective immediately.


.I 444
.C
earn
.W
SNET <SNG> SEES GOOD 1987 EARNINGS.
    NEW YORK, April 1 - Southern New England Telecommunications
Corp, SNET, said it expects to have good earnings in 1987
against 4.46 dlrs per share or 139.2 mln dlrs in 1986.
    The company also said it expects capital spending to rise
to about 355 mln dlrs in 1987, up from 289 mln dlrs a year ago.
    However, senior vice president of finance Daniel Miglio
told a meeting of analysts that there was some uncertainty in
its earnings outlook because SNET is currently involved in
negotiations with state regulators on its rate of return on
equity which currently stands at 16.2 pct.
    The company also said it expects its SNET Systems business,
which is composed of some of its non-regulated businesses, to
be profitable by the end of the year.



.I 447
.C
acq
.W
STRYKER <STRY> ACQUIRES HEXCEL <HXL> UNIT.
    KALAMAZOO, Mich., April 1 - Stryker Corp said it acquired
Hexcel Medical Corp, a wholly owned subsidiary of Hexcel Corp.
    The terms of the transaction were not disclosed.
    The sale completes Hexcel's plan to sell all its medical
products businesses, Hexcel said.


.I 449
.C
acq
.W
OLD STONE <OSTN> COMPLETES ACQUISITION.
    PROVIDENCE, R.I., April 1 - Old Stone Corp said it
completed the previously announced acquisition of First Federal
Savings Bank of North Carolina, a Shelby, N.C., savings bank,
for
    The final purchase price, expected to be between seven mln
and 7.5 mln dlrs, will be based on an exchange of common stock
valued at 1.5 times the book value of First Federal as of the
March 31 closing date, the company said.
    At February  28, First Federal had 129 mln dlrs in assets
and 120 mln dlrs in deposits. Old Stone is a Rhode Island-based
financial services company with assets of 3.9 billion dlrs.


.I 450
.C
acq
.W
MOORE MEDICAL CORP <MMD> TO MAKE ACQUISITION.
    NEW BRITAIN, Conn., April 1 - Moore Medical Corp said it
plans to acquire privately-held Penta Products, a wholesale
distributor of generic durgs, for undisclosed terms.


.I 451
.C
copper
.W
INSPIRATION LOWERS COPPER PRICE TO 66.50 CTS/LB.
    NEW YORK, April 1 - Inspiration Consolidated Copper Co, a
subsidiary of Inspiration Resources Corp, said it is lowering
its base price for full-plate copper cathodes one-half cent to
66.50 cents a lb, effective immediately.


.I 452
.C
veg-oil
.W
ARGENTINE VEGETABLE OIL SHIPMENTS IN 1986.
    BUENOS AIRES, Apr 1 - Argentine vegetable oils shipments
during January/December 1986 totalled 1,796,121 tonnes, against
1,577,722 tonnes in the same period of 1985, the Argentine
Grain Board said.
    Breakdown was as follows: cotton 9,000 (27,900), sunflower
954,303 (840,440), linseed 119,954 (138,944), groundnutseed
26,248 (26,246), soybean 669,094 (524,715), tung 9,047
(11,363), olive 2,417 (4,125), maize 6,058 (3,989), rape nil
(nil) , grape nil (nil), the board added.
    Shipments during December 1986 amounted to 102,870 tonnes,
against 108,514 tonnes in the same month of 1985.
    The breakdown, was as follows, in tonnes:
    Cotton 5,000 (nil), sunflower 25,156 (23,713), linseed
6,127 (5,990), groundnutseed nil (738), soybean 65,759
(76,371), tung 645 (730), olive 183 (660), maize nil (312),
rape nil (nil), grape nil (nil), the board said.    
    The ten principal destinations during January/December
1986, with comparative figures for the same period of 1985 in
brackets, were as follows, in tonnes:
    Iran 212,043 (209,177), Holland 204,558 (215,784), Soviet
Union 173,060 (266,389), Egypt 163,119 (164,252), Algeria
116,330 (11,492), South Africa 105,230 (110,064), Brazil
101,599 (103,142), Cuba 89,957 (98,740), United States 80,109
(44,826), India 67,182 (17,403), the board said.


.I 453
.C
acq
.W
UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM.
    NEW YORK, April 1 - Upland Minerals and Chemicals Corp said
it agreed to acquire Consolidated Brazilian Mines International
Inc, a public company with one mln acres of diamond and gold
properties in Brazil.
    Terms were not disclosed.
    Consolidated owns 42 mining concessions in three regions of
eastern and northern Brazil -- Gammara, Santo Antonio and
Diamazon, the company said.
    Upland also said the previously announced acquisition of
Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining
concern, will produce revenues of 9.6 mln dlrs a year for the
next 25 years.
    New York-based Upland is traded over-the-counter.


.I 454
.C
acq
.W
INSPEECH <INSP> BUYS NORMA BORK, BORK MEDICAL.
    VALLEY FORGE, Pa., April 1 - Inspeech Inc said it acquired
Norma Bork Associates Inc and Bork Medical Services Inc for
undisclosed terms.
    These firms, with combined revenues of about one mln dlrs,
are providers of speech pathology, physical therapy and
occupational therapy services.


.I 455
.C
earn
.W
NOLAND CO <NOLD> SETS QUARTERLY.
    NEWPORT NEWS, Va., April 1 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 24
    Record April 14


.I 457
.C
interest
.W
BANK OF NEW YORK <BK> RAISES PRIME TO 7-3/4 PCT.
    NEW YORK, April 1 - Bank of New York said it raised its
prime lending rate a quarter point to 7-3/4 pct.
    It said the move is effective immediately.


.I 459
.C
earn
.W
HARTMARX CORP <HMX> 1ST QTR FEB 28 NET.
    CHICAGO, April 1 -
    Shr 54 cts vs 40 cts
    Net 11,105,000 vs 8,310,000
    Sales 282.7 mln vs 290.3 mln
    Avg shrs 20,599,000 vs 20,760,000
    NOTE: Per-share results restated for May 1986 three-for-two
stock split


.I 463
.C
interest
.W
MANUFACTURERS NATIONAL <MNTL> RAISES PRIME.
    DETROIT, April 1 - Manufacturers National Bank of Detroit
said it increased its prime rate to 7-3/4 pct from 7-1/2 pct,
effective immediately.


.I 464
.C
acq
.W
UPLAND MINERALS ACQUIRES BRAZIL MINING FIRM.
    NEW YORK, April 1 - Upland Minerals and Chemicals Corp said
it agreed to acquire Consolidated Brazilian Mines International
Inc, a public company with one mln acres of diamond and gold
properties in Brazil.
    Terms were not disclosed.
    Consolidated owns 42 mining concessions in three regions of
eastern and northern Brazil -- Gammara, Santo Antonio and
Diamazon, the company said.
    Upland also said the previously announced acquisition of
Aslaminas Aslambeck Mining Corp, a Minas Gerais, Brazil, mining
concern, will produce revenues of 9.6 mln dlrs a year for the
next 25 years.


.I 465
.C
earn
.W
TOLL <TOL> IN STOCK SPLIT, PUBLIC OFFERING.
    HORSHAM, Penn., April 1 - Toll Brothers Inc said it
declared a two-for-one split of its common stock and said it
filed a registration statement with the Securities and Exchange
Commission for a proposed public offering of 5,700,000 shares
of common as adjusted for the split.
    The record date for the split is April 10, and certificates
representing the additional shares will be mailed April 20.
    The company said its stock price will be adjusted to
reflect the split on April 21.


.I 467
.C
earn
.W
NATIONAL ROYALTY CORP <NROC> 4TH QTR LOSS.
    TULSA, Oklahoma, April 1 -
    Shr loss 22 cts vs loss 20 cts
    Net loss 2,127,334 vs loss 1,629,432
    Revs 1,306,658 vs 1,091,023
    Avg shrs 9.7 mln vs 8 mln
    Year
    Shr loss 36 cts vs loss 35 cts
    Net loss 3,519,251 vs loss 2,805,569
    Revs 5,081,953 vs 4,410,954
    Avg shrs 9.8 mln vs 8.1 mln


.I 468
.C
earn
.W
HI-PORT INDUSTRIES INC <HIPT> 4TH QTR NET.
    HOUSTON, April 1 -
    Oper shr 29 cts vs eight cts
    Oper net 222,143 vs 76,605
    Revs 4,872,279 vs 3,276,404
    12 mths
    Oper shr 17 cts vs 28 cts
    Oper net 111,280 vs 301,623
    Revs 13.9 mln vs 11.1 mln
    NOTE: 1986 yr figures excludes extraordinary item of
574,363 dlrs, or 60 cts per share, for termination of its non
contributory pension plan.
    1985 yr figures excludes 537,950 dlrs, or 42 cts per share,
representing insurance proceeds from a fire that occurrred in
1983.



.I 471
.C
silver
.W
COMEX RAISES MARGINS FOR SILVER FUTURES.
    NEW YORK, April 1 - The Commodity Exchange Inc said it is
increasing the minimum margins for silver futures contracts,
effective at the opening of business Thursday, April 2.
    The margins for speculative trading will be increased to
2,000 dlrs per contract from 1,300 dlrs and trade hedge margins
will rise to 1,400 dlrs from 900 dlrs, the Comex said.
    Margins are unchanged for gold, copper, and aluminum
contracts, it said.


.I 472
.C
earn
.W
<SYSTEMS FOR HEALTH CARE INC> YEAR LOSS.
    CHICAGO, April 1 -
    Shr loss 33 cts vs nil
    Net loss 603,430 vs profit 4,295
    Revs 748,628 vs 5,730
    NOTE: Per-share results give retroactive effect to
one-for-50 reverse stock split in March 1987
    1986 loss includes recurring expenses of 317,062 dlrs
related to acquisitions and initial advertising campaigns


.I 474
.C
interest
.W
MELLON <MEL>, REPUBLIC <RPT> LIFT PRIME RATES.
    NEW YORK, April 1 - Mellon Bank NA of Pittsburgh and
Republic Bank of Dallas have both raised their prime lending
rates to 7-3/4 pct from 7-1/2, effective immediately.


.I 477
.C
ship
.W
GULF BARGE FREIGHT HIGHER IN NEARBYS ON CALL.
    ST LOUIS, April 1 - Gulf barge freight rates continued to
show a firmer tone in the nearbys on the assumption that
changes in the Gulf posted prices will encourage increases in
both PIK-and-roll activity and barges shipments, with a total
of 21 barges traded this morning on the ST Louis Merchants'
Exchange call session, versus nine yesterday, dealers said.
    Quotes included -
 - This week Mississippi River (Granite City, MLA if P/O)
traded at 175 pct of tariff, five percentage points above
yesterday's bid.
 - Next week Mississippi (Alton/Granite City, MLA if P/O) bid
five points higher at 175 pct, offered at 190.
 - Five barges each week April MidMississippi River
(Dubuque/south) traded at yesterday's bid of 170 pct.
 - April Illinois River (ex Chicago) 160 pct bid, offered 10
points higher at 170.
 - May same section 140 pct bid, offered five lower at 145.
 - May MidMississippi River (Dubuque/south) bid 2-1/2 points
higher at 142-1/2 pct, offered at 145.
 - June/July lower Mississippi River (Memphis/Cairo) offered at
120 pct, no bids.
 - June/Aug upper Mississippi River (Lacrosse/Savage) offered
at 150 pct, no bids.
 - Oct/Nov MidMississippi (Dubuque/south, L/H Nov
Clinton/south) 170 pct bid/177-1/2 offered - no comparison.
 - December Illinois River (ex Chicago) 122-1/2 pct bid/127-1/2
offered - down 2-1/2 points on offer.


.I 478
.C
acq
.W
<CRIME CONTROL> ASSETS TO BE SOLD TO HAWLEY.
    INDIANAPOLIS, April 1 - Crime Control Inc said it reached a
definitive agreement under which a subsidiary of Hawley Group
Ltd will buy assets and assume certain liabilities of Crime
Control for 51.3 mln dlrs.
    Of this amount, it said about 47 mln dlrs would be
available for distribution to the company's banks, debenture
holders and shareholders. The balance would be used to pay
various state taxes and other expenses relating to the
transaction, and to establish reserves to provide for certain
unassumed obligations of the company.
    Crime Control said it would use proceeds to pay its bank
lenders approximately 28.6 mln dlrs, representing about 87 pct
of the principal amount of all its indebtedness to bank
lenders.
    It also said it would propose to acquire all of its 20 mln
dlrs worth of outstanding 10 pct convertible subordinated
debentures for an aggregate of approximately 15.4 mln dlrs and
propose liquidation of the company with shareholders receiving
an estimated 54 cts a share.
    As reported earlier, Crime Control is in default on
approximately 33 mln dlrs of bank debt and in default under the
indenture governing its convertible subordinated debentures.
    On January 19, 1987, Crime Control, which installs,
services and monitors electronic surveillance systems, said it
retained Rothschild Inc to arrange for the sale of the company.


.I 479
.C
interest
.W
******ROYAL/BANK CANADA UPS U.S. BASE RATE 1/4 PCT TO 8-1/4 PCT.

.I 482
.C
oilseed;wheat;grain;rapeseed;soybean;sunseed;cotton;linseed;groundnut;
.W
ARGENTINE SUBPRODUCTS SHIPMENTS IN 1986.
    BUENOS AIRES, Apr 1 - Argentine subproducts shipments
during January/December 1986 totalled 5,618,315 tonnes, against
4,815,188 tonnes in the same period of 1985, the Argentine
Grain Board said.
    Breakdown was as follows: cotton 26,992 (41,933), sunflower
1,403,230 (1,190,862), linseed 261,600 (309,191), groundnutseed
23,595 (22,809), soybean 3,275,225 (2,415,492), bran/pollards
wheat 606,352 (659,271), fiber cotton 3,256 (107,752), wheat
flour 18,065 (67,878), rape nil (nil), the board added.
    Shipments during December 1986 amounted to 418,755 tonnes,
against 257,844 tonnes in the same month of 1985.
    The breakdown, was as follows, in tonnes:
    Cotton 3,002 (6,234), sunflower 86,612 (38,347), linseed
23,954 (38,290), groundnutseed nil (nil), soybean 264,650
(104,571), bran/polards wheat 37,724 (49,946), fiber cotton 987
(2,121), wheat flour 1,826 (18,335), rapeseed nil (nil), the
board said.
    The ten principal destinations during January/December
1986, with comparative figures for the same period of 1985 in
brackets, were as follows, in tonnes:
    Holland 2,444,260 (2,234,049), Belgium 546,423 (595,635),
Italy 430,029 (338,766), Czechoslovakia 365,897 (236,836), Cuba
253,067 (222,842), Iran 250,646 (192,430), West Germany
232,049) (158,491), Bulgaria 207,030 (300,488), Spain and
Canary Islands 176,287 (113,751), Corea 163,304 (37,416), the
board added.


.I 483
.C
earn
.W
LE PEEP RESTAURANTS INC <LPEP> 4TH QTR LOSS.
    DENVER, April 1 - 
    Shr loss 27 cts vs loss 81 cts
    Net loss 998,764 vs loss 1,491,590
    Revs 2,712,614 vs 1,237,850
    Avg shrs 3,727,063 vs 1,838,294
    Year
    Shr loss 1.79 dlr vs loss 2.11 dlrs
    Net loss 4,559,004 vs loss 3,882,235
    Revs 8,510,004 vs 3,720,640
    Avg shrs 2,544,271 vs 1,838,294


.I 485
.C
livestock;carcass;
.W
ESTIMATED U.S. POULTRY SLAUGHTER.
    KANSAS CITY, April 1  - The United States department of
agriculture estimated live poultry slaughter for the week
ending April 1  as follows, in thousands -
            Current      Previous
 Class      week         week
 Bro/Fry      92,552      95,563 
 Lt Fowl       2,840       3,354 
 Hvy Fowl        651         789 
 Check Total  96,043      99,706 


.I 486
.C
earn
.W
TOWLE MANUFACTURING CO <QTOW> 4TH QTR OPER LOSS.
    BOSTON, April 1 -
    Oper shr loss 1.10 dlrs vs loss 8.63 dlrs
    Oper net loss 5.1 mln vs loss 42.1 mln
    Revs 23.1 mln vs 63.3 mln
    Year
    Oper shr loss 4.71 dlrs vs loss 14.09 dlrs
    Oper net loss 22.0 mln vs loss 67.2 mln
    Revs 114.6 mln vs 221.8 mln
    Avg shrs 4,910,330 vs 4,851,650
    NOTE: Current year excludes gain of 12.1 mln dlrs from
disposal of discontinued operations.
    Shr figures after preferred dividend requirements.


.I 487
.C
interest
.W
ROYAL BANK/CANADA UPS U.S. BASE RATE.
    MONTREAL, April 1 - <Royal Bank of Canada> said it is
raising its U.S. base lending rate by 1/4 pct to 8-1/4 pct,
effective tomorrow.
    The move is the first change in the bank's U.S. dollar base
lending rate since last August, when it lowered the rate 1/2
point.
    It follows the announcement yesterday of a 1/4 point rise
to 7-3/4 pct of two of the largest U.S. banks' prime rates.


.I 488
.C
interest
.W
HARRIS BANK INCREASES ITS PRIME RATE.
    CHICAGO, April 1 - <The Harris Trust and Savings Bank> said
it has increased its prime rate to 7-3/4 from 7-1/2 effective
immediately.


.I 489
.C
wheat;grain;
.W
ANALYSTS SAY USSR MAY PREFER NEW CROP U.S. WHEAT.
    WASHINGTON, April 1 - The Soviet Union would likely be more
interested in purchasing new crop wheat than in booking any
grain for immediate shipment if offered a subsidy on U.S.
wheat, an executive with a major grain export company said.
    Lower prices and the desire to delay any big purchases
until the condition of winter and spring crops is better known
make new crop wheat more attractive, said George Hoffman,
director of commodity analysis for The Pillsbury Company.
    "Pillsbury is assuming that they (Soviets) will be offered
a subsidy and that it will be a subsidy that they can respond
to," Hoffman told Reuters in an interview at an agribusiness
education conference here. But if there are too many
constraints placed on a subsidy offer, the USSR will take less
than an anticipated four mln tonnes, he said.
    Hoffman said Pillsbury's internal statistics put Soviet
Union wheat purchases at only two mln tonnes under a subsidy
offer. However, if a subsidy is offered at competitive levels,
Moscow would likely buy more, he said.
    "If we give the Soviets the same deal as the Chinese, I
expect they'll take it," said Vernon McMinimy, director of
commodity research for A.E. Staley Manufacturing Co.
    McMinimy told Reuters spring weather and its impact on
crops will determine how much wheat Moscow would buy under a
subsidy offer.
    Soviet winter crops did not get off to a good start because
of a dry autumn last year, and because of the severe winter
"they probably have had more damage due to winter weather than
normal," McMinimy said.


.I 494
.C
earn
.W
STRAWBRIDGE AND CLOTHIER <STRW> 4TH QTR NET.
    PHILADELPHIA, April 1 -
    Shr 2.02 dlrs vs 1.94 dlrs
    Net 14.7 mln vs 13.9 mln
    Revs 265.6 mln vs 235.1 mln
    Year
    Shr 2.83 dlrs vs 3.36 dlrs
    Net 20.7 mln vs 24.1 mln
    Revs 739.1 mln vs 686.9 mln
    NOTE: Current year includes loss equal to 12 cts/shr from
takeover defense and loss of 13 cts from loss of investment tax
credits.


.I 495
.C
crude
.W
******MOBIL RAISES WEST COAST CRUDE PRICES BETWEEN ONE DLR AND.
1.75 DLRS/BBL TODAY

.I 497
.C
wheat;grain;
.W
EGYPT AUTHORIZED TO BUY PL 480 WHEAT FLOUR-USDA.
    WASHINGON, April 1 - Egypt has been authorized to purchase
about 125,000 tonnes of U.S. wheat flour under an existing PL
480 agreement, the U.S. Agriculture Department said.
    It may buy the wheat flour, valued at 23.0 mln dlrs between
April 8 and August 31, 1987 and ship it by September 30, the
department said.


.I 498
.C
ship
.W
TUGS TO ATTEMPT REFLOATING KOREAN BULK CARRIER.
    LONDON, April 1 - Seven tugs will attempt to refloat the
South Korean motor bulk carrier Hyundai New World tonight,
Lloyds shipping intelligence service said in its latest update.
    The vessel grounded close to Itaqui port in Brazil last
night after undocking from Ponta da Madeira terminal.
    Lloyds said the 200,000 dwt vessel is carrying about
180,000 tons of ore.
    Five holds are partially flooded and there is some leakage
of bunkers from double bottom tanks. At low water tide the
vessel has a list of five degrees to port and the list
increases as the tide rises.
   


.I 499
.C
earn
.W
ROBERT BRUCE INDUSTRIES INC <BRUCA> YEAR LOSS.
    NEW YORK, April 1 -
    Shr loss 3.31 dlrs vs profit 94 cts
    Net loss 6,073,000 vs profit 1,823,000
    Revs 58.9 mln vs 69.2 mln


.I 502
.C
interest
.W
TCF BANKING AND SAVINGS HIKES PRIME RATE.
    MINNEAPOLIS, April 1 - TCF Banking and Savings FA said it
is raising its prime rate to 7-3/4 pct from 7-1/2 pct effective
today.


.I 503
.C
oilseed;groundnut;
.W
CCC SELLS FARMERS STOCK PEANUTS, OFFERS MORE.
    WASHINGTON, April 1 - The U.S. Commodity Credit Corporation
(CCC) sold 6,034 short tons of 1986-crop farmers stock peanuts
for domestic crushing, the U.S. Agriculture Department said.
    The peanuts were from the Southwest area and were sold at
between 8.05 cts per lb (total kernel content), and 11.7225 cts
per lb, the department said.
    The CCC will offering additional 1986-peanuts for sale at a
later date, the department said.


.I 504
.C
acq
.W
CAMPEAU AND EDWARD DEBARTOLO COMPLETE PURCHASE.
    NEW YORK, April 1 - <Campeau Corp> and the <Edward J.
DeBartolo Corp> have closed on their previously-announced 
purchase of five of the regional shopping centers of Allied
Stores Corp.
    Campeau said it and the DeBartolo Association will each
hold a 50 pct ownership interest in the shopping centers.
    Campeau separately announced that, as required by a bank
agreement, it has contributed an additional 50 mln dlrs of
capital to Allied.
    Campeau acquired Allied Stores Corp earlier this year, the
company said.


.I 506
.C
interest
.W
CCC INTEREST RATE FOR APRIL IS SIX PCT -- USDA.
    WASHINGTON, April 1 - The Commodity Credit Corporation
(CCC) interest rate on loans disbursed in April will carry a
six pct ionterest rate, the U.S. Agriculture Department said.
    The April rate is up from March's 5-7/8 pct and reflects
the interest rate charged CCC by the U.S. Treasury, the
department said.


.I 509
.C
acq
.W
STANDARD OIL <SRD> COMMITTEE TRIED TO DELAY BID.
    NEW YORK, April 1 - A committee of independent directors of
the Standard Oil Co unsuccessfully sought a delay in a tender
offer for Standard shares by British Petroleum Co plc,
according to offering documents.
    BP's offering document for its 70 dlr per share offer
describes discussions with Douglas Danforth, who chairs a
special committee of independent directors responsible for
monitoring relations with BP. BP has been owner of a 55 pct
stake in Standard for several years.
    According to the document, the committee's counsel said it
needed one to two months to evaluate the offering price.
    Danforth, who is chairman of the Westinghouse Electric Co
<WX>, first learned of BP's interest in acquiring the rest of
Standard in a telephone call March five from Sir Peter Walters,
chairman of BP.
    At a meeting march nine, Danforth informed BP that the
special committee had hired First Boston Corp <FBC> as its
financial adviser and also retained independent counsel.
    Danforth's concerns that the special committee did not have
sufficient time were expressed to Walters in a telephone
conversation and reiterated in a letter from counsel on Monday
of this week.


.I 511
.C
earn
.W
******BANKAMERICA SAYS 1ST QTR NET TO BE CUT BY 40 MLN DLRS DUE.
TO BRAZILIAN LOANS

.I 513
.C
earn
.W
******BANKAMERICA SAYS IT EXPECTS TO REPORT A PROFIT FOR.
FIRST-QUARTER 1987

.I 514
.C
crude
.W
MOBIL <MOB> RAISES WEST COAST CRUDE POSTINGS.
    New York, April 1 - Mobil Corp said it raised its west
coast crude postings, effective today.
    The Buena Vista light grade, at 26 degrees api gravity, was
raised 1.35 dlrs a barrel to 15.55 dlrs/bbl, while the
Huntington Beach light grade, at 16 degrees, was raised about
1.75 dlrs/bbl to 14.10 dlrs/bbl.
    The heavier Wilmington grade, at 17 degrees, was increased
1.20 dlrs to 14.30 dlrs/bbl. Kern River crude, at 13 degrees,
was increased 1.00 dlr to 13.00 dlrs/bbl.
     Mobil also said that effective today it changed its
gravity adjustment scale as follows: From 20 degrees to 34
degrees API, Mobil will adjust its price 0.015 of a ct per
one-tenth of an API degree. Below 20 degrees API, the company
will adjust its price 0.020 ct per one-tenth of a degree. Crude
grades from 34 degrees API to above 40 degrees are unaffected.


.I 516
.C
earn
.W
STRAWBRIDGE <STRW> DECLARES STOCK DIVIDEND.
    PHILADELPHIA, April 1 - Strawbridge and Clothier said its
board declared a seven pct stock dividend, payable May 14 to
holders of record April 14.
    Earlier, the company reported net income of 20.7 mln dlrs.


.I 521
.C
earn
.W
******LAIDLAW DECLARES THREE FOR TWO SPLIT, BOOSTS PAYOUT to.
5-1/4 CTS/SHR FROM FOUR CTS

.I 522
.C
earn
.W
TRANSDUCER SYSTEMS INC YEAR.
    KULPSVILLE, PA, April 1 -
    Shr profit 12 cts vs loss 49 cts
    Net profit 117,000 vs loss 506,000
    Revs 1.1 mln vs 1.2 mln
    Year
    Shr profit seven cts vs loss 89 cts
    Net profit 66,000 vs loss 921,000
    Revs 4.4 mln vs 3.9 mln
    NOTE:1986 reflects tax benefit of 24,000. 1985 reflects tax
benefit of 186,000 for quarter and 573,000 for year.


.I 524
.C
earn
.W
LAIDLAW TRANSPORTATION LTD <LDMFA> 2ND QTR NET.
    Toronto, April 1 - period ended February 28
    Shr 26 cts vs 14 cts
    Net 28.4 mln vs 15.2 mln
    Revs 305.7 mln vs 179.6 mln
    Six mths
    Shr 50 cts vs 28 cts
    Net 54.6 mln vs 30.3 mln
    Revs 586.2 mln vs 359.8 mln
    Avg shrs 100,362,000 vs 91,360,000


.I 526
.C
acq
.W
CENTURY BUSINESS CREDIT <CTY> GETS OFFER.
    NEW YORK, April 1 - Century Business Credit Corp said it
received an offer from Stanley Tananbaum, chairman and chief
executive officer, to take the company private in a transaction
giveing shareholders 24.40 dlrs per share in cash.
    There were 603,106 shares outstanding as of December 31.
    The independent directors said they will engage an expert
to evaluate the fairness of the offer.


.I 529
.C
earn
.W
LAIDLAW <LDMFA> SPLITS STOCK, HIKES PAYOUT.
    Toronto, April 1 -
    Three for two stock split
    Pay and record date subject to shareholder confirmation May
four
    Qtly dividend 5-1/4 cts vs four cts
    Pay May 15
    Record May one
    Note: dividends declared on pre-split shares.
    Laidlaw Transportation Ltd


.I 530
.C
interest
.W
SECURITY PACIFIC, PROVIDENT NATIONAL LIFT PRIME.
    NEW YORK, April 1 - Security Pacific National Bank and
Provident National Bank said they increased their prime lending
rates a quarter point to 7-3/4 pct.
    They said the move is effective immediately.


.I 531
.C
earn
.W
******J.P. MORGAN SAYS BRAZIL ACTION WILL REDUCE FIRST QUARTER.
NET BY ABOUT 20 MLN DLRS

.I 532
.C
earn
.W
HOUSTON INDUSTRIES INC <HII> INCREASES DIV.
    HOUSTON, April 1 -
    Qtly div 72 cts vs 70 cts prior
    Payable June 10
    Record May 15


.I 533
.C
acq
.W
EMERY <EAF> PLANS PUROLATOR <PCC> ASSET SALES.
    WASHINGTON, April 1 - Emery Air Frieght Corp, which has
launched a 40 dlr a share tender offer for 83 pct of Purolator
Courier Corp, said it would sell some Purolator assets to help
pay the estimated 265 mln dlr cost of the stock purchase deal.
    In a filing with the Securities and Exchange Commission,
Emery said it would sell or lease Purolator's air hub in
Indianapolis, Ind., which is currently under construction, and
would divest Purolator's Stant Inc subsidiary.
    No indications of interest for the assets have been
received so far, Emery said.
    Emery said it would operate Purolator as a subsidiary if it
succeeded in the takever, but would integrate its air hub.
    It said it plans to finance its stock purchases with
borrowings from Chemical Bank, Morgan Guaranty Trust Co of New
York, Bankers Trust Co and Salomon Brothers Holding Co Inc, the
parent of Salmon Brothers Inc, Emery's financial advisor.
    Emery said it already has a commitment letter from its
banks for up to 129.9 mln dlrs for the stock purchases. An
unspecified amount of internally generated funds would also be
used for the stock purchases, it added.


.I 534
.C
earn
.W
CENTURY BUSINESS CREDIT CORP <CTY> 4TH QTR.
    NEW YORK, April 1 -
    Shr 39 cts vs 31 cts
    Net 232,991 vs 198,185
    Revs 2.9 mln vs 2.3 mln
    Year
    Shr 2.20 dlrs vs 1.12 dlrs
    Net 1.3 mln vs 715,113
    Revs 11.3 mln vs 10.1 mln
    NOTE:1986 revs includes 260,000 dlr finder's fee , net
includes 112,000 gain from sale of securities, 115,000
dividends, 78,000 dlrs from lease recalculations.
    1985 revs includes 700,000 finder's fee and 75,000 gain
from sale of asset.



.I 537
.C
acq
.W
IC INDUSTRIES<ICX> UNIT TO SELL OFF MORE TRACK.
    CHICAGO, April 1 - Illinois Central Gulf Railroad, a
subsidiary of IC Industries Inc, said it will complete the sale
to the Chicago, Missouri and Western Railway of its 631-mile
line from Joliet, Ill., to St. Louis by April 30.
    The Chicago, Missouri is a wholly owned subsidiary of the
Venango River Corp, a transportation holding company.
    It said the purchase price of the line is 81 mln dlrs.
    The Chicago, Missouri will employ 625 workers and start
operation immediately upon closing of the transaction.


.I 539
.C
grain;corn;
.W
STRONG DEMAND FOR U.S. CORN IN JAPAN -- USDA.
    WASHINGTON, April 1 - Japan appears to be relying less on
corn from China, Argentina and South Africa and more on
supplies from the United States, the U.S. Agriculture
Department said.
    In its World Production and Trade report, the department
said in the past seven weeks reported U.S. corn sales of nearly
three mln tonnes to Japan are about three times the level
during this period last year.
    Reports of short Argentine supplies and the apparent
unwillingness of the Chinese to sell at current world prices
may have caused Japanese buyers to turn to the United States
for corn supplies, the department said.


.I 540
.C
nat-gas
.W
******BRITISH PETROLEUM RAISES NORTH SEA BUTANE PRICES BY 15.50.
DLRS A TONNE TODAY

.I 541
.C
nat-gas
.W
BP <BP> RAISES NORTH SEA BUTANE PRICES.
    NEW YORK, April 1 - British Petroleum Co plc said it raised
its posted butane prices by 15.50 dlrs per tonne to 123 dlrs,
fob north sea, effective today.
    Posted propane prices were unchanged at 110 dlrs per tonne,
the company said.
   


.I 543
.C
fuel
.W
ATLANTIC TO RAISE HIGH SULPHUR FUEL PRICES.
    NEW YORK, April 1 - Atlantic Fuels Marketing Corp said
today it will raise the posted cargo prices for high sulphur
fuels in New York Harbor 50 to 75 cts per barrel, effective
April two.
    The increase brings the prices for two pct sulphur to 19.25
dlrs, up 50 cts, 2.2 pct sulphur to 18.75 dlrs, up 50 cts, 2.5
pct sulphur to 18.50 dlrs, up 50 cts, 2.8 pct sulphur to 18.25
dlrs, up 75 cts, the company said.
    Posted prices for 0.3 pct and one pct low sulphur fuels
were unchanged at 22 and 20 dlrs, it said.


.I 544
.C
interest
.W
FIRST NATIONAL BANK OF BOSTON <BKB> RAISES PRIME.
    NEW YORK, April 1 - The First National Bank of Boston, the
main banking unit of Bank of Boston, said it is raising its
prime lending rate to 7.75 pct from 7.50 pct, effective
immediately.


.I 545
.C
earn
.W
GENCORP TAKES NO ACTION ON STOCK DIVIDEND.
    AKRON, Ohio, April 1 - Gencorp Inc said its board took no
action with respect to a two pct stock dividend at its annual
meeting yesterday due to the press of other business,
specifically the company's pending takeover offer by General
Acquisition Corp, formed by AFG industries inc and Wagner and
brown.
    A spokesman said the two pct stock dividend, normally
issued everly year, was not issued in February because the
company was examining other dividend alternatives. Management
said it would give consideration to this matter at a later
time.
   Yesterday, the company's chairman, A. William Reynolds, told
shareholders he would be presenting an alternative to the 100
dlrs a share takeover offer within a week.



.I 546
.C
earn
.W
MORGAN <JPM> PLACES BRAZIL LOANS ON NONACCRUAL.
    NEW YORK, April 1 - J.P. Morgan and Co Inc, parent of
Morgan Guaranty Trust Co of New York, said that it will place
1.3 billion dlrs of medium- and long-term loans to Brazil on a
non-accrual basis, matching similar action by BankAmerica Corp
<BAC> earlier today.
    The move, which follows Brazil's suspension of interest
payments on 68 billion dlrs of commercial bank debt on February
20, is expected to reduce first quarter net income by about 20
mln dlrs, of which four mln dlrs represents interest accrued
prior to 1987 but still uncollected, the bank said.
    Morgan earned 233.9 mln dlrs in the first quarter of 1986.
    Morgan also said that, based on current interest rates and
assuming cash interest payments are not received for the rest
of the year, 1987 net income would be reduced by about 72 mln
dlrs. 1986 net income was 872.5 mln dlrs.
    Although U.S. banks do not have to put loans on nonaccrual
until they are over 90 days past due, Morgan said some of the
loans affected by the Brazil payment freeze may reach the
90-day limit during the second and third quarters.
    Morgan said it assumes talks between Brazil and commercial
bank lenders will proceed "expeditiously" and interest payments
will resume at the earliest practicable date.


.I 549
.C
acq
.W
GOULD <GLD> COMPLETES SALE OF DIVISION.
    ROLLING MEADOWS, Ill., April 1 - Gould Inc said it has
completed the sale of its Systems and Simulations Division to
the unit's management for an undisclosed price.
    Gould said the move is part of its plan to divest its
defense systems businesses and focus on its computer and
electronics sectors.
    Gould added that it accounted for the division as a
discontinued operation.


.I 551
.C
grain;corn;
.W
FRENCH SUBSIDIZED CORN FOR TUNISIA/MOROCCO-USDA.
    WASHINGTON, April 1 - U.S. corn sales to Tunisia, Morocco
and other North African countries may face increased
competition from European Community (EC) corn sales, the U.S.
Agriculture Department said.
    In its World Production and Trade report, the USDA said
sales of French corn for nearby delivery have been confirmed
with an export subsidy of about 145 dlrs per tonne, bringing
the French price to about 72 dlrs per tonne, FOB.
    While this is about the same price as U.S. corn, EC corn
has lower transport costs, the department noted.
    The French sales mark the beginning of commercial EC corn
exports which could reach 750,000 tonnes to North Africa and
the Middle East, areas which have traditionally purchased their
corn needs from the United States, the department said.
    Department officials said the 750,000 tonnes of exports are
for the year up to September 30 1987.
    They said export licenses for about 500,000 tonnes have
been issued so far.


.I 553
.C
wheat;grain;
.W
NEW ZEALAND MAY BUY U.S. WHEAT -- USDA.
    WASHINGTON, April 1 - New Zealand may need about 100,000
tonnes of wheat this year, which would normally come from
Australia, but may be from the United States, the U.S.
Agriculture Department said.
    In its report on Export Markets for U.S. Grains, the
department said with the deregulation of the New Zealand Wheat
Board, which normally imports wheat from Australia, there is
the possibility of wheat purchases from the united states since
the shipping cost between New Zealand and the Eastern Coast of
Australia and the West Coast of the United States are about
equal.


.I 555
.C
ship;grain;
.W
GRAIN SHIPS LOADING AT PORTLAND.
    PORTLAND, April 1 - There were five grain ships loading and
three ships were waiting to load at Portland, according to the
Portland Merchants Exchange.


.I 559
.C
acq
.W
FRENCH FIRM HAS FIVE PCT OF CALIF. WATER <CWTR>.
    WASHINGTON, April 1 - Compagnie Generale Des Eaux
<EAUG.PA>, a French water, waste treatment and disposal,
heating, ventilation and air conditioning concern said it has a
5.0 pct stake in California Water Service Co.
    In a filing with the Securities and Exchange Commission,
Compagnie Generale said it bought its 139,200 California Water
shares for a total of 7.0 mln dlrs for investment purposes.
    While it said it might acquire more shares in the company,
it said it has no plans to seek control of it.


.I 560
.C
livestock
.W
USDA REPORT ON CATTLE SLAUGHTER, MEAT PURCHASES.
    WASHINGTON, April 1 - The U.S. Agriculture Department said
an estimated 8,700 head of dairy cattle were slaughtered during
the week ending March 13 as a result of the Whole Herd Dairy
Buyout program.
    The cumulative total of cattle slaughtered under the
program from April 1 through March 13 is estimated at 1,032,300
head, it said.
    Cumulative meat purchases through March 27 total
376,897,330 lbs, the department said.
    Dairy cattle reported for export under the program for the
period April 1 through March 27 totaled an estimated 55,055
head, the department said.
    Live cattle exports are in addition to the meat purchase
requirements, the department said.


.I 561
.C
interest
.W
MAJOR U.S. BANKS MOVE TO HIGHER 7-3/4 PCT PRIME.
    NEW YORK, April 1 - Most major U.S. banks today matched
Tuesday's quarter-point prime rate cuts by Citibank and Chase
Manhattan Bank, the first prime rate boosts since mid-1984.
    Most cited narrower spreads between the prime and funding
costs as justification. Analysts said the prime rate rises may
have been triggered partly by a desire by banks to enhance
profit margins given problems with developing country loans. 
    Commenting on the prime rate increases, U.S. Treasury
Secretary James Baker told a House Appropriations Committee
that "I hope it was a temporary blip upward."
    Among the major banks which today announced prime rate
increases to 7-3/4 pct were Bankers Trust, Chemical Bank,
Continental Illinois National Bank, Harris Trust and Savings
Bank, Irving Trust, Manufacturers Hanover Trust Co, Marine
Midland, and Security Pacific National Bank.
    Other banking companies announcing prime rate rises
included Pittsburgh National Bank, Texas Commerce Bank-Houston,
Provident National Bank, First National Bank of Boston, Florida
Federal Savings and Loan Association, and SunTrust Banks.


.I 562
.C
earn
.W
JEM RECORD INC <JEMR> 2ND QTR JAN 31.
    SOUTH PLAINFIELD, N.J., April 1 -
    Shr three cts vs seven cts
    Net 52.1 mln vs 112,713
    Revs 5.1 mln vs 4.4 mln
    Six months
    Shr five cts vs 15 cts
    Net 75,605 vs 244,119
    Revs 9.5 mln vs 9.5 mln
   


.I 564
.C
interest
.W
UNION BANK RAISES ITS PRIME RATE TO 7.5 PCT.
    LOS ANGELES, April 1 - The Union Bank subsidiary of
Standard Chartered PLC said today it was raising its prime
lending rate to 7.75 pct from 7.50 pct, effective immediately.


.I 565
.C
dlr;interest;
.W
FURTHER DECLINES IN U.S. DEBT FUTURES POSSIBLE.
    By Brad Schade, Reuters
    CHICAGO, April 1 - After an already steep fall in the past
week, U.S. interest rate futures may be in for further declines
in the near term, financial analysts said.
    However, some analysts said recent sharp losses in bond
futures have left the bond market somewhat oversold, and the
contracts on long-term debt could stage a recovery before
resuming their decline.
    Key to the near-term direction of futures will be the
course of the dollar, they said.
    "As the dollar goes, so goes the bond market," said Dean
Witter analyst Karen Gibbs.
    The recent decline in the dollar, which hit a 40-year low
against the Japanese yen Monday, was reversed Wednesday when
several large U.S. money center banks unexpectedly raised their
prime lending rates by a quarter point, to 7-3/4 pct.
    "Even though the prime rate cut was good for the dollar,
foreign exchange traders are not convinced the dollar decline
is over," Gibbs said.
    The dollar decline was key in recent weakness in debt
futures as it rekindled concern about a pickup in inflation.
    Indeed, the falling dollar may have been a key topic at the
meeting of the Federal Reserve's policy making arm, the Federal
Open Market Committee, this week, analysts said.
    "To the Fed, the combination of a falling dollar, a
steepening yield curve, and rising commodity prices look
suspiciously like the traces of expectations of accelerating
inflation," said Denis Karnosky, analyst at Carroll, McEntee
and McGinley Inc.
    Such expectations could mean that "a shift in policy toward
restriction of bank reserves is likely to get very serious
consideration," at the FOMC meeting, he said.
    Any such restriction of reserves will not be a highly
visible form of monetary tightening, Karnosky said.
    Rather, the key to detecting a change will be found in
seasonal and adjustment borrowing at the discount window, he
said. Borrowings have held near a weekly average of 300 mln
dlrs over the past several months, he said.
    In the meantime, however, "the market looks a bit
oversold," said Jim Wysoglad, analyst at Golden Gate Futures.
    Wysoglad said a recovery from the oversold condition could
drive June bonds to a high near 99 before falling back to test
chart support near the recent low of 97-13/32.
    Technician Leslie Keefe of Technical Data Corp of Boston
said that the key test for June bonds will be whether the
nearby contract holds above chart support at 96-24/32.
    "All previous selloffs since mid-November have stopped and
buyers have surfaced at that level," Keefe said.
    If that level is broken, and the dollar continues to
decline, Keefe said she expects the June bond contract to
decline to test support between 92 and 93, the primary uptrend
line dating back to 1984.


.I 566
.C
grain
.W
USDA GRAIN INSPECTION ADVISORY COMMITTEE MEETING.
    WASHINGTON, April 1 - The Federal Grain Inspection Service
Advisory Committee will meet here Monday, April 13, the U.S.
Agriculture Department said.
    Items on the agenda for the meeting, which is scheduled to
begin at 0830 edt, are grain-quality issues, status of proposed
regulations, financial matters and safety matters, the
department said.
    The Federal Grain Inspection Service Advisory Committee is
composed of 12 members representing the grain industry who
provide advice to the administrator of the Federal Grain
Inspection Service.


.I 567
.C
acq
.W
DEAK BUYS JOHNSON MATTHEY COMMODITIES.
    NEW YORK, APRIL 1 - Deak International, a foreign currency
and precious metals firm, announced the acquisition of Johnson
Matthey Commodities of New York from Minories Finance Limited,
a unit of the Bank of England.
    The purchase valued at 14.8 mln dlrs follows the recent
acquisition of London's Johnson Matthey Commodities Limited,
Deak said. The New York firm will be known as Deak
International Trading Ltd, the company said. Arkadi Kuhlmann,
president and chief executive officer of Deak International,
said the purchase will expand Deak's operations in precious
metals and wholesale non-ferrous metals trading.


.I 568
.C
coffee
.W
COFFEE FUTURES AT SIX-YEAR LOW, UNDER 1 DLR/LB.
    CHICAGO, April 1 - Coffee futures dipped further today and
closed below 1 dlr a pound for the first time in six years.
    Coffee for delivery in May ended at 99.28 cents a pound on
the Coffee, Sugar and Cocoa Exchange, down 0.76 cent and the
lowest price since August, 1981.
     Prices have been falling steadily since the International
Coffee Organization failed in February to reach an agreement
controlling exports by its members, and pressure was renewed
this week as the executive board of the organization met in
London without reopening debate on its export quotas.
    The executive board has limited its current discussions to
administrative matters and is set to adourn Thursday.
    Burdensome supplies have pressed the market down from 1.30
dlr a pound in February, when the organization's discussions
aimed at re-establishing export quotas broke down.
    Sandra Kaul, a coffee analyst in New York with Shearson
Lehman Brothers, said supplies currently are at their high
point for the year because most producing nations have just
completed their harvests.
    In addition, she said, many of those nations are faced with
serious debt and need to sell coffee to raise capital.
    "This should keep substantial pressure on exporters to
undertake sales despite the drop in prices," she said.
    Further, U.S. demand could be sluggish because winter, the
period of greatest consumption, is ending. Prices could fall
another 10 cents to 15 cnts a pound, analysts said.
    Gold futures retreated from modest early gains and closed
steady while silver prices rallied on the Commodity Exchange in
New York.
    The increase in U.S. banks' prime rates prompted concern
about renewed inflation, but the strength of the U.S. dollar
discouraged new buying.
    "The market is getting mixed signals and it doesn't know
which way to go," one analyst said.
    Gold futures retreated from modest early gains and closed
steady while silver prices rallied on the Commodity Exchange in
New York.
    The increase in U.S. banks' prime rates prompted concern
about renewed inflation, but the strength of the U.S. dollar
discouraged new buying.
    "The market is getting mixed signals and it doesn't know
which way to go," one analyst said.


.I 569
.C
earn
.W
BELDEN AND BLAKE ENERGY CO <BBE> 4TH QTR.
    NEW YORK, APril 1 -
    Shr loss 1.92 dlrs vs profit five cts
    Net loss 5.6 mln vs profit 136,598
    Revs 1.4 mln vs. 2.5 mln
    Year
    Shr loss 3.81 dlrs vs profit 21 cts
    Net loss 10.8 mln vs profit 435,176
    Revs 7.6 mln vs 9.4 mln
    NOTE:1986 4th qtr includes write-off of about 373,000 dlrs
or 13 cts and writdown of assets of 4.0 mln dlrs. 1986 year
includes 4.1 mln dlrs 1st qtr writedown.


.I 572
.C
acq
.W
CROWN RESOURCES <CRRS> PLANS ENERGY UNIT SALE.
    DENVER, April 1 - Crown Resources Corp said it plans to
sell its Oklahoma-based oil and gas unit as part of its
strategy to focus on developing precious metals properties.
    The company said it bought the Wyona Water Flood Oil and
Gas unit in 1984 for 650,000 dlrs.
    Crown said the Wyona field is fully developed with 28
producing wells.
    Current oil production is 80 barrels a day, it said, adding
that no gas was produced for sale in 1986.


.I 573
.C
acq
.W
M.D.C. HOLDINGS <MDC> SELLS ENERGY UNIT.
    DENVER, April 1 - M.D.C. Holdings Inc said it sold
substantially all the assets of its oil and gas unit, Mizel
Petro Resources Inc, and affiliated partnerships, for 38 mln
dlrs in cash to <Parker and Parsley Petroleum Co>, Midland,
Texas.
    The company said that, subject to certain post-closing
adjustments, it expects to post a small profit on the sale.


.I 574
.C
earn
.W
LIVINGWELL INC <WELL> YEAR.
    HOUSTON, April 1 -
    Shr six cts vs three cts
    Net 1.7 mln vs 3.1 mln
    Revs 187.3 mln vs 129.7 mln
    NOTE:Increase in earnings due to elimination of preferred
dividend requirements.


.I 576
.C
oilseed;soybean;
.W
MEXICO BUYS 51,000 TONNES U.S. SOYBEANS.
    KANSAS CITY, April 1 - Mexico bought 51,000 tonnes of U.S.
number two yellow soybeans in an overnight tender, for various
ocean and rail shipments in May, private export sources said.
    About 40,000 tonnes sold for ocean shipment at prices
ranging from 199.67 to 210.17 dlrs per tonne, c and f, and
about 11,000 tonnes sold for rail shipment at prices from
205.50 to 217.88 dlrs per tonne, they said.


.I 578
.C
acq
.W
FIDELCOR <FICR> UNIT ACQUIRES LAZERE FINANCIAL.
    NEW YORK, April 1 - Fidelcor Inc's Fidelcor Business Credit
Corp subsidiary said it reached a definitive agreement to
acquire a substantial portion of the Bank of New England Corp's
<BKNE> Lazere Financial Corp's assets.
    Terms of the acquisition were not disclosed. The
acquisition is subject to approval of the Federal Reserve
Board.
    Fidelcor said it would acquire most of Lazere's loan
portfolio and other assets, including its Miami office. It said
it plans to hire the majority of Lazere's 100 employees.


.I 579
.C
earn
.W
SUNSTATES CORP <SUST> 4TH QTR.
    JACKSONVILLE, Fla, April 1 -
    Shr loss 3.51 dlrs vs loss 6.14 dlrs
    Net loss 3.2 mln vs loss 6.6 mln
    Year
    Shr loss 2.38 dlrs vs loss 5.17 dlrs
    Net loss 692,872 vs loss 4.5 mln
    NOTE:1986 loss includes loss of 301,000 for discontinued
oeprations vs a loss of 5.5 mln dlrs net of a 1.4 mln credit in
1985. 1985 4th qtr includes loss of 3.5 mln dlrs for
discontinued operations. share amts relfect dividend
requirements.


.I 580
.C
earn
.W
<BII ENTERPRISES INC> YEAR NOV 30 NET.
    TORONTO, April 1 -
    Shr 86 cts vs 79 cts
    Net 4,042,000 vs 3,549,000
    Revs 59.7 mln vs 47.3 mln


.I 581
.C
earn
.W
<SCOTTISH AND YORK HOLDINGS LTD> YEAR LOSS.
    TORONTO, April 1 -
    Shr loss 27 cts vs loss 2.27 dlrs
    Net profit 2,150,000 vs loss 14,700,000
    Revs 121.3 mln vs 69.8 mln
    Note: shr after payment of preferred stock dividends


.I 583
.C
coffee
.W
COFFEE FUTURES UNDER DLR A POUND AT SIX-YEAR LOW.
    CHICAGO, April 1 - Coffee futures dipped further and closed
below one dlr a pound for the first time in six years.
    Coffee for delivery in May ended at 99.28 cents a pound on
the New York Coffee, Sugar and Cocoa Exchange, down 0.76 cent
and the lowest price since August, 1981.
     Prices have fallen steadily since the International Coffee
Organization failed in February to reach an agreement
controlling exports by its members, and pressure was renewed
this week as the executive board of the organization met in
London without reopening debate on its export quotas.
    The executive board has limited its current discussions to
administrative matters and is set to adourn Thursday.
    Burdensome supplies have pressed the market down from 1.30
dlrs a pound in February, when the organization's discussions
aimed at re-establishing export quotas broke down.
    Sandra Kaul, a coffee analyst in New York with Shearson
Lehman Brothers, said supplies currently are at their high
point for the year because most producing nations have just
completed their harvests.
    In addition, she said, many of those nations are faced with
serious debt and need to sell coffee to raise capital.
    "This should keep substantial pressure on exporters to
undertake sales despite the drop in prices," she said.
    Further, U.S. demand could be sluggish because winter, the
period of greatest consumption, is ending. Prices could fall
another 10 to 15 cents a pound, analysts said.
    Gold futures retreated from modest early gains and closed
steady while silver prices rallied on the Commodity Exchange in
New York.
    The increase in U.S. banks' prime rates prompted concern
about renewed inflation but the strength of the U.S. dollar
discouraged new buying.
    "The market is getting mixed signals and it doesn't know
which way to go," one analyst said.
    Cattle futures posted new highs on the Chicago Mercantile
Exchange, while live hogs rallied from early losses and frozen
pork bellies finished sharply lower.
    Cattle prices continued to draw support from the winter
storm that swept the Plains states, leaving animals stranded in
snowbound fields and feed lots in miserable condition.
    Live hogs were pressured early by the Agriculture
Department's report Tuesday that producers expanded their
breeding herds more than the market expected last quarter.
Prices recovered to keep pace with higher cash prices.
    Frozen pork bellies fell sharply on the outlook for greater
production and closed with limit losses.
    Soybean futures posted sharp gains on the Chicago Board of
Trade, while corn and wheat were lower.
    Soybeans rallied in response to Tuesday's USDA report that
farmers intend to plant 56.9 mln acres this year, down from
61.5 mln planted last year.
    Corn prices were pressured by the outlook for 67.6 mln
acres of corn, which is down from last year's 76.7 mln acres,
but was larger than analysts expected.


.I 584
.C
acq
.W
INVESTMENT ADVISORS HAVE 10 PCT OF KILLEARN<KPI>.
    WASHINGTON, April 1 - Two executives of a Memphis, Tenn.,
investment advisory firm told the Securities and Exchange
Commission they have acquired 132,000 shares of Killearn
Properties Inc, or 10.4 pct of the total outstanding.
    The executives, O. Mason Hawkins and William Reid, who work
for Southeastern Asset Management Inc, said they bought their
Killearn stock with personal funds as an investment.
    While they said they might increase their stake Killearn
Properties, they said they have no plans to seek control of it.


.I 589
.C
meal-feed
.W
ARGENTINE GRAIN/OILSEED EXPORT PRICES ADJUSTED.
    BUENOS AIRES, April 1 - The Argentine grain board adjusted
minimum export prices of grain and oilseed products in dlrs per
tonne FOB, previous in brackets, as follows:
    Sunflowerseed cake and expellers 99 (97), pellets 97 (95)
and meal 95 (93).                               
    Sunflowerseed oil for shipments through May 308 (300) and
June onwards 314 (307).                         
    Linseed cake and expellers 137 (136), pellets 115 (114) and
meal 105 (104), all for shipments through June. 
    Linseed cake and expellers 146 (145), pellets 124 (123) and
meal 114 (113), all for shipments July onwards.
    Soybean cake and expellers 169 (167), pellets 162 (160) and
meal 152 (150), all for shipments through May.  
    Soybean cake and expellers 166 (164), pellets 159 (157) and
meal 149 (147), all for shipments June onwards.


.I 590
.C
earn
.W
SAVOY INDUSTRIES INC <SAVO> YEAR.
    NEW YORK, April 1 -
    Shr loss 42 cts vs loss five cts
    Net loss 4.0 mln vs loss 446,000
    Revs 58.9 mln vs 70.3 mln
    NOTE:1986 net includes gain of 40 cts from discontinued
operations. 1985 net includes gain of 22 cts from discontinued
operations.


.I 592
.C
earn
.W
AMERICAN HOIST AND DERRICK CO <AHO> 1ST QTR NET.
    SAINT PAUL, Minn., April 1 - Qtr ended March 14.
    Shr profit 32 cts vs loss 1.30 dlrs
    Net profit 2,704,000 vs loss 7,589,000
    Rev 105.2 mln vs 82.3 mln
    NOTE: Qtr net includes extraordinary gain of 1.1 mln dlrs.



.I 594
.C
ship;grain;
.W
N.Y. GRAIN FREIGHTS - April 1.
    Tradax took Y.S. Tonnage 52,000 tonnes U.S. Gulf to Japan
early May dates 16.00 dlrs 11 days all purposes
    Tradax took Dimitrios 76,000 tonnes any grains 4,952,000
grain cubics U.S. Gulf to Holland May 1-10 8.50 dlrs 12 days
all purposes
    ADM took Ymuiden Maru 93,500 tonnes DWCC 4,726,937 grain
cubics U.S. Gulf to Holland April 20-30 lumpsum 675,000 dlrs 11
days all purposes
    Dreyfus took Golden Crown 20,000 tonnes U.S. Gulf to East
Coast Mexico April 6-10 10.00 dlrs 1,500 discharge
    Marubeni took NYK TBNs 52,000 tonnes HSS seven times U.S.
Gulf to Japan July 1987-January 1988 dates 14.25 dlrs 9,000
load 6,500 discharge


.I 596
.C
acq
.W
AMERICAN BARRICK <ABX> SELLS COAL ASSETS.
    TORONTO, April 1 - American Barrick Resources Corp said it
sold two coal supply agreements and certain mining equipment,
representing substantially all of the assets of its two Ohio
coal mines, to Peabody Coal Co, of Kentucky.
    Terms were not disclosed.
    Proceeds from the sale combined with the sale of the
company's remaining coal assets should result in full recovery
of its investments in the operations, the company said without
further elaborating.
    The sale will complete the planned disposition by American
Barrick of all its non-gold assets, it said.


.I 599
.C
ship;crude;
.W
N.Y. TANKERS - April 1.
    Citgo took West Virginia 62,000 tons dirty April 9
Caribbean to U.S. Gulf worldscale 63


.I 600
.C
oilseed;veg-oil;wheat;grain;sugar;corn;livestock;cotton;groundnut;carcass;
.W
U.S. HOUSE PANEL EXTENDS EEP, URGES USSR OFFER.
    WASHINGTON, APRIL 1 - The U.S. House Agriculture Committee
approved proposals to extend the life of the Export Enhancement
Program, EEP, through fiscal 1990 and urged the Reagan
administration offer EEP wheat to the Soviet Union.
    The proposals were approved as amendments to a
comprehensive trade bill moving through Congress this year.
    In addition to the amendments on EEP, the committee
approved several proposals which could restrict imports of
lamb, casein, sugar-containing products and tobacco. Those
amendments affecting imports face an uncertain future because
the House Ways and Means Committee, which has overall
jurisdiction over trade legislation, will oppose them,
Congressional sources said.
    The effect of the EEP amendments would be to extend the
life of the program five years through fiscal 1990 rather than
the current three years through fiscal 1988.
    The amendments, offered by Rep. Dan Glickman, D-Kan., also
would increase funding for the program to 2.5 billion dlrs from
1.5 billion now.
    Furthermore, the committee passed an amendment offered by
Rep. Glickman which instructs the U.S. Agriculture Department
to value EEP bonus commodities at market value, not acquisition
value. Glickman said the change would make the program 30 pct
less expensive to operate.
    The provision on EEP wheat to the Soviet Union, offered by
Rep. Bob Smith, R-Ore., does not require the administration
make an offer, but urges such action.
    The committee approved an amendment, offered by Rep. Glenn
English, D-Okla., requiring the Secretary of Agriculture to
begin discussions with other major grain producing countries
aimed at jointly reducing world grain production.
    Trade Representative Clayton Yeutter yesterday opposed the
amendment, saying such commodity agreements do not work.
    Among the host of amendments to restrict imports approved
by the panel, the most significant would require quotas on
imports of goods containing more than 25 pct of a bulk farm
product that is subject to U.S. quotas. The amendment, offered
by Rep. Arlan Stangeland, R-Minn., is aimed primarily at
curbing imports from Canada of products containing sugar and
foreign foods containing dairy products. It also may affect
peanut, cotton and tobacco imports, Committee sources said.
    Another amendment would place a quota on U.S. imports of
casein, a dairy product shipped to the U.S. primarily by New
Zealand and Ireland.
    The panel also voted to apply to lamb imports the same
countercyclical import quota law which is operating for U.S.
beef imports.
    Other miscellaneous amendments included:
    -- Urging the administration consider retaliating against
Japan and South Korea if those countries do not remove
restrictions on beef imports.
    -- Boosting the amount of U.S. grain which must be shipped
each year under a food aid program called Section 416 to
800,000 tonnes from 500,000 tonnes now.
    -- Requiring the Agriculture Secretary conduct a study of
the Canadian Wheat Board import licensing system for wheat to
determine if it is a non-tariff trade barrier.
    -- Requiring the Agriculture Secretary reimburse the
National Corn Growers Association up to 500,000 dlrs for the
costs of defending the U.S. feedgrains program against a
Canadian countervailing duty case this year.
    -- Urging the administration oppose the Canadian decision
to apply a duty on U.S. corn imports, and a proposal by the
European Community to apply a vegetable oils tax.
    -- USDA conduct a study of the findings of a National
Commission on Agricultural Export Policy, which recommended a
reorganization of USDA's trade policy apparatus.


.I 602
.C
acq
.W
NOVAMIN BOARD TO RECOMMEND BREAKWATER <BWRLF> BID.
    Vancouver, British Columbia, April 1 - <Novamin Inc> said
its board will recommend to shareholders the takeover offer
made by Breakwater Resources Ltd.
    Breakwater is offering to exchange one Breakwater share for
each two shares of Novamin, the company said.
    Breakwater will issue about 3.7 mln shares for all Novamin
shares presently issued and outstanding. Additional shraes of
Breakwater will be issued if warrants and options of Novamin
are exercised.


.I 603
.C
meal-feed
.W
U.S. FEED SITUATION SUMMARY REPORT DELAYED.
    WASHINGTON, April 1 - The U.S. Agriculture Department said
its summary report on the Feed Situation and Outlook, scheduled
for release April 24, has been delayed until May 15.
    The department said the delay will enable analysts to
incorporate into the report USDA's first supply and demand
estimates for the 1987/88 marketing year and data on farm
program participation.


.I 604
.C
livestock;carcass;
.W
EXOTIC NEWCASTLE DISEASE IN MD/NEW YORK-USDA.
    WASHINGTON, April 1 - Exotic Newcastle, a highly contagious
disease of pet birds and poultry, has been confirmed in two
pet-bird dealer facilities in Maryland, and New York, the U.S.
Agriculture Department said.
    The department said no domestic poultry are involved in the
outbreak.
    State quarantines have been placed on the two facilities,
in Hunt Valley, Maryland, and Schenectady, New York.
    The most serious U.S. outbreak of the disease occurred in
1971-73 in southern California, where the disease spread from
infected pet birds to a dense poultry population and nearly 12
mln birds, mostly laying hens, were destroyed at a cost of 56
mln dlrs, the department said.


.I 606
.C
acq
.W
NEWMONT MINING CORP REDUCES STAKE IN PEABODY.
    NEW YORK, APril 1 - Newmont Mining Corp said it completed
the previously announced reduction of its share in <Peabody
Holding Co Inc> to 49.97 pct from 61.47 pct.
    Newmont realized 116.8 mln dlrs in the transaction.
    For 1986, Newmont reported net income of 74.2 mln dlrs.
Peabody, the largest coal producer in the U.S., had net income
of 100.8 mln dlrs on sales of 1.4 billion dlrs in 1986.
    Newmont doubled its ownership in Peabody in January by
purchasing 30.74 pct interest held by the Williams Cos for 320
mln dlrs.
    The reduction resulted from completion of an earlier
announced agreement by Peabody to sell a 15.01 pct interest in
the company to Eastern Gas and Fuel Associates in exchange for
all the coal properties owned by Eastern.


.I 607
.C
earn
.W
MR. GASEKT CO <MRGC> 3RD QTR DEC 31.
    CLEVELAND, April 1 -
    Shr loss 26 cts vs profit eight cts
    net loss 2.8 mln vs profit 897,000
    Revs 27.0 mln vs 30.0 mln
    Nine months
    Shr loss 51 cts vs profit 46 cts
    Net loss 5.4 mln vs profit 4.9 mln
    Revs 88.4 mln vs 99.8 mln


.I 608
.C
earn
.W
DELTAUS CORP <DLTA> YEAR.
    TYLER, Texas, April 1 -
    Shr loss 64 cts vs loss 1.70 dlrs
    Net loss 13.4 mln vs loss 35.6 mln
    REvs 47.9 mln vs 72.1 mln
    NOTE:1985 includes loss of 941,000 from discontinued
operations and 5.8 mln dlrs from disposal of net asset solds.


.I 610
.C
earn
.W
DEROSE INDUSTRIES INC <DRI> 4TH QTR.
    TAMPA, Fla, April 1 -
    Shr loss 56 cts vs loss 71 cts
    Net loss 809,000 vs loss 1.0 mln
    Revs 5.3 mln vs 5.3 mln
    Year
    Shr loss 1.51 dlrs vs profit 61 cts
    Net loss 2.2 mln vs loss 2.3 mln
    Revs 26.5 mln vs 29.1 mln


.I 611
.C
earn
.W
REVLON GROUP <REV> REPORTS 1986 RESULTS.
    New York, April 1 - Revlon Group Inc told the Securities
and Exchange Commission it had net profits of 16,465,000 on
sales of 1.61 billion dlrs for the year ended Dec. 31, 1986.
    Revlon in a filing with the SEC compared the results to the
five months ending Dec. 31, 1985. In that period, it lost 28.4
mln dlrs on sales of 262.4 mln dlrs.
    Earlier today, MacAndrews and Forbes Group Inc began an
18.50 dlr a share cash offer for all common stock of Revlon it
does not own. Revlon today rose 3/8 to 19-1/4 in active
trading. MacAndrews controls 31.8 pct of the voting power.

    For 1986, Revlon said the loss applicable to common stock
after preferred dividends is 9.5 mln dlrs. The net loss per
share was 24 cts, compared to a net loss of 99 cts per share
last year.
    Revlon said it had a 1986 operating profit of 64.3 mln
dlrs, compared to a loss of 13.3 mln dlrs in the year earlier
period.
    The 1986 net includes a provision for estimated loss on
dispositions of 57.0 mln dlrs, compared to 15.1 mln dlrs the
year earlier. Earnings in 1986 before extraordinary items were
7.4 mln dlrs.


.I 614
.C
acq
.W
LIFETIME <LFT> EXCHANGE OFFER ACCEPTED.
    NEW YORK, APril 1 - LIfetime Corp said Retirement Housing
Corp has accepted its previously announced acquisition offer.
    Retirement will operate autonomously as a separate
subsidiary.


.I 617
.C
earn
.W
MANUFACTURERS <MHC> PUTS BRAZIL ON NON-ACCRUAL.
    NEW YORK, April 1 - Manufacturers Hanover Corp said it
placed 1.4 billion dlrs of medium- and long-term loans to
Brazilian borrowers on non-accrual as of yesterday, meaning
that income will be recorded only when actual cash payments are
received.
    As a result, net income for the first quarter will be
reduced by 18 mln dlrs.
    If Brazil, which suspended interest payments on its term
debt on February 20, continues to defer interest payments for
the rest of the year, net income for the whole of 1987 would be
reduced by a total of 72 mln dlrs.
    U.S. bank accounting guidelines do not require loans to be
placed on nonaccrual unless interest payments are past due 90
days or more.  However, Manufacturers Hanover said that, in
light of current circumstances, it was more appropriate to
record income on its Brazilian loans only when cash payments
were received.
    It added that it believes Brazil will reach agreement with
its banks on a debt restructuring and that all interest
payments will be received later in 1987.
    The company earned 102.1 mln dlrs in first-quarter 1986 and
410.7 mln dlrs for the whole of the year.


.I 618
.C
acq
.W
GALVESTON TO AQUIRE MINE PROPERTY INTERESTS.
    TORONTO, April 1 - <Galveston Resources Ltd> said it agreed
in principle for an option to earn up to a 50 pct interest from
<Hemlo Gold Mines Inc> in certain mining properties known as
the Interlake Property, subject to regulatory approvals.
    Galveston said it will earn up to a 50 pct interest by
spending a minimum of one mln dlrs in exploration and
development work by December 31, 1989.
    It expects work will commence shortly and continue during
the 1987 exploration season.
    Galveston also said it granted Hemlo Gold options to
acquire up to two mln Galveston shares.
    It said the options can be exercised at 10 dlrs a share up
to December 31, 1987, then at 12.50 dlrs a share until December
31, 1988, and then at 15 dlrs a share until December 31, 1989.
    Separately, Galveston said it agreed in principle with
<Noranda Inc> unit Noranda Explorations Ltd for an option to
earn up to a 50 pct interest in a major mineral property
located at the Baie Verte Peninsula, Newfoundland.
    Galveston can earn a 50 pct interest by spending six mln
dlrs in exploration and development work on the property by
December 31, 1989.
    The company also said it granted Noranda an option to
purchase two mln Galveston shares.
    The options can be exercised at 10 dlrs a share until
December 31, 1987, then at 12.50 dlrs a share until December
31, 1988, and then at 15 dlrs a share until December 31, 1989.


.I 619
.C
earn
.W
<OCELOT INDUSTRIES LTD> YEAR LOSS.
    CALGARY, Alberta, April 1 -
    Shr loss 15.29 dlrs vs loss 2.80 dlrs
    Net loss 221.3 mln vs loss 40.4 mln
    Revs 146.3 mln vs 260.7 mln
    Note: 1986 loss includes extraordinary loss of 171.6 mln
dlrs or 11.85 dlrs shr related to writedown of certain
petrochemical assets and reduced by tax gain of 4.2 mln dlrs or
28 cts shr.
    1985 results restated.


.I 1470
.C
earn
.W
DEUTSCHE BANK SEES SLOW START TO 1987.
    FRANKFURT, April 2 - Deutsche Bank AG <DBKG.F> has seen a
slow start to 1987 after posting record profits in 1986,
management board joint spokesman F. Wilhelm Christians said.
    Credit business declined in the first few weeks of the
year, and the interest margin was squeezed further. The weak
German bourse saw earnings on commission fall sharply, and
trading in securities also fell. But earnings from currency
dealing were still satisfactory, he told a news conference.
    Deutsche group partial operating profits rose to 3.78
billion marks in 1986 from 2.92 billion in 1985 on a balance
sheet of 257.22 billion marks after 237.23 billion.
    Profits were swollen by earnings from the placement of the
former Flick group, which have been estimated at some one
billion marks, and from record profits in trading on the bank's
own account, not included in partial operating profits.
    Earnings from the Flick transaction were booked through a
subsidiary, and therefore showed up as part of the interest
surplus in a section current earnings from securities and
participations.
    In the group this nearly doubled to 2.64 billion marks from
1.45 billion.
    As usual the bank did not detail total operating profits.
    But it said that total operating profits, including own
account trading, rose 24.9 pct or 4.5 pct without the Flick
transaction in the group, and 35.1 pct or seven pct in the
parent bank.
    Banking analysts said this put group total operating
profits at some 6-1/2 to seven billion marks, and parent bank
operating profits at over five billion marks.
    Christians said Deutsche used the extraordinary earnings
from Flick to pay a record five mark bonus on top of its
unchanged 12 mark dividend.
    The bank had decided against raising the dividend itself
because of the uncertain business outlook at the end of 1986,
and developments so far this year showed that was correct,
Christians said.
    West German banks rarely raise dividends unless they are
sure they can maintain the increased payout in subsequent
years, preferring to use bonuses for one-of profits.
    The bank also used its extraordinary earnings to continue a
high level of risk provision, Christians said.
    Disclosed group risk provisions rose to 867 mln marks in
1986 from 765 mln in 1985.
    Under German law, disclosed provisions do not necessarily
reflect the full amount of risk provisions.
    Management board joint spokesman Alfred Herrhausen said
Deutsche's total debt exposure to problem countries had fallen
to over six billion marks in 1986 from 7.4 billion in 1985
because of the fall in the dollar.
    He agreed with a questioner who asked if over two thirds of
such problem country debt had been written off.
    Deutsche Bank posted a sharp rise in holdings of "other
securities," to 4.64 billion marks from 2.71 billion in the
parent bank.
    Christians said this 1.93-billion-mark rise was partly due
to its increased activity in international share placements,
with some shares such as those from Fiat SpA's international
placement last year remaining on its books.
    Herrhausen said that no concrete measures were planned to
place these shares and conclude the original placement.


.I 1471
.C
acq
.W
DEUTSCHE AGREES FULL TAKEOVER OF FORMER EURASBANK.
    FRANKFURT, April 2 - Deutsche Bank AG <DBKG.F> has agreed
to take over the outstanding 25 pct in <Deutsche Bank (Asia)
AG>, the former <European Asian Bank AG>, from
Creditanstalt-Bankverein <CABV.VI>, Deutsche management board
joint spokesman Alfred Herrhausen told a news conference.
    Euras broke even in 1986 and required no funding from
Deutsche, he said. He gave no details of the deal with
Creditanstalt.
    Press reports that Deutsche was planning a takeover of
Lloyds Bank plc <LLOY.L> were without foundation, he said.
    Herrhausen said Deutsche had taken part in the recent
capital increase of <Morgan Grenfell Group plc>, but had no
plans to raise its 4.4 pct share in Morgan Grenfell.
    <Banca d'America e d'Italia SpA>, in which 98.3 pct was
acquired from Bankamerica Corp <BAC.N> late last year, would be
consolidated this year, and contribute to further expansion of
Deutsche's business, management board joint spokesman F.
Wilhelm Christians said.
    Following a ruling earlier this year from the Federal High
Court, Deutsche had included its non-bank holdings in the
balance sheet section "participations," Christians said.
    But Christians said the bank still regarded shares in these
non-bank companies as an investment rather than an active
participation.
    Parent bank total participations rose to 6.45 billion marks
in 1986 from a comparable 4.57 billion in 1985 including a rise
to 3.79 billion from 2.34 billion in bank participations.
    Herrhausen said the grouping of holdings in the balance
sheet in this was was not a first step to floating them off in
a separate holding company.


.I 1472
.C
dlr;money-fx;interest;
.W
WORLD RECESSION UNLIKELY - DEUTSCHE'S HERRHAUSEN.
    FRANKFURT, April 2 - A world recession is unlikely this
year as fiscal and monetary policy in most industrialized
countries is supporting the economy, Deutsche Bank AG <DBKG.F>
management board joint spokesman Alfred Herrhausen said.
    But growth rates will be smaller than last year, with 1.5
to 2.5 pct likely in most industrialized countries, he told a
news conference.
    Herrhausen said he was confident private consumption would
support economic growth in West Germany this year, with net
income increases turning into purchasing power as long as
inflation did not revive.
    Herrhausen said he did not expect interest rates to rise in
West Germany this year, but there was little room for further
falls. Rates in the U.S. were however rising, as evidenced by
the latest prime rate moves, but this rise would be moderate.
    Herrhausen said he did not expect any major narrowing of
the U.S. Trade and budget deficits in the next few months.
    One success of the Paris agreement in February to foster
currency stability was that U.S. Officials have stopped talking
down the dollar, he noted.
    The recent stability would last until markets decided to
test the resolve of central banks, he said.
    He noted that central banks had spent some 10 billion dlrs
this week to stabilize the dollar against the yen in the first
such test.
    "A massive attack on the mark, which could come if we get
bad news out of the U.S., Would require a much higher
intervention amount, raising the danger of inflation," he said.
    Turning to the international debt problem, Herrhausen said
Brazil's unilateral debt moratorium had surprised banks.
    But the move showed that a real solution to debt problems
was only possible with the involvement of all parties.


.I 1473
.C
earn
.W
SINGAPORE BANKS SAY DIVERSIFICATION KEY TO GROWTH.
    By Tay Liam Hwee, Reuters
    SINGAPORE, April 2 - Singapore's major banks are
diversifying and gradually shifting their asset holdings from
loans to debt instruments, banking sources said.
    The banks following the trend are the <Overseas Union Bank
Ltd>, <United Overseas Bank Ltd>, <Oversea-Chinese Banking
Corporation> and the <Development Bank of Singapore Ltd>.
    The shift towards securitisation has been helped by
volatile financial markets which have developed hedging
facilities such as floating rate notes and bonds for risk
management, said Overseas Union General Manager Loh Hoon Sun.
    Loh told Reuters in an interview that Singapore banks see
limited growth in credit risk. More and more of them are
switching from term lending to major growth areas such as
stockbroking and fee based income, he said.
    Major local banks ventured into stockbroking after being
granted seats on the stock exchange. Bankers said they are now
moving into the new government securities market and the Stock
Exchange of Singapore Dealing and Quotation System.
    One foreign banker said the Development Bank and the
Overseas Union Bank Ltd have become major players in the equity
market in Singapore.
    Loh said the banks' participation in the stock market has
increased business transactions and provided long term growth
for the market. The banks are not competition for individual
stockbroking firms because of the increased business they
generate, he added.
    Loh said the Stock Exchange of Singapore might expand
equity issues by as much as one billion dlrs this year because
of the increasing ability of foreign and local market
participants to absorb new issues.
    Loh said <OUB Investment management Ltd>, a subsidiary of
the Overseas Union Bank Ltd, has teamed up with a U.K. Firm to
launch the Union Global Fund. The fund is for local investors
seeking capital growth through a diversified international
portfolio. It will invest in international shares with the
emphasis on U.S. And Japanese markets, he said.
    <DBS Securities Singapore Pte Ltd>, a subsidiary of the
Development Bank of Singapore, has applied to the Hong Kong
Stock Exchange to set up a Hong Kong stockbroking firm.
    Loh predicted fixed deposit and prime interest rates in
Singapore will stay low this year. As a result, banks will be
forced to provide fund management services for major clients
seeking better returns, he said.
    Economic analysts and bankers are optimistic the major
banks will show profits in 1987, helped by higher income from
treasury and investment banking activities.
    They expect the 1987 after-tax profits of Oversea-Chinese
and United Overseas to show stable growth of four to eight pct
against respective gains of four and seven pct in 1986.
    Overseas Union's profits are expected to jump to over 40
mln dlrs from seven mln dlrs in 1986, economists said.
    The Development Bank's after-tax profits rose 39.2 pct in
1986 mainly due to a dividend of 20.4 mln dlrs paid by
<National Discount Company Ltd> before it became a subsidiary
of the bank, they said.


.I 1474
.C
interest
.W
WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE.
    WELLINGTON, April 2 - Westpac Banking Corp in New Zealand
said it will increase its indicator lending rate by 1.5
percentage points to 22.5 pct from April 7.
    Westpac said in a statement the increase reflects high
costs of funding.
    The bank said nervousness in the wholesale deposit market
is creating uncertainty about the immediate outlook for
interest rates. Liquidity is expected to remain tight over the
next month and this will put upward pressure on interest rates.
Base lending indicator rates of the other three trading banks
range between 21.0 pct and 21.5 pct.


.I 1475
.C
coffee
.W
THAI TRADERS OPPOSE REIMPOSITION OF COFFEE QUOTAS.
    BANGKOK, April 2 - Thai coffee exporters said they hoped
the International Coffee Organisation (ICO) would not reimpose
export quotas even though this may lead to a further slump in
world prices.
    Susin Suratanakaweekul, president of the Thai Coffee
Exporters Association, told Reuters that Thailand obtained
little benefit from previous ICO quotas which represented only
about 30 pct of its total annual exports.
    Thailand expects increased overall coffee export revenue if
there are no restrictions on sales to current ICO members who
offer higher prices than non-members, he said.
    The Customs Department said Thailand exported 21,404 tonnes
of coffee last year, up from 20,602 in 1985.
    Thai coffee production is projected to fall to about 25,000
tonnes in the 1986/87 (Oct/Sept) season from 28,000 the
previous year.
    However, a senior Commerce Ministry official said the Thai
government supports coffee producers' lobbying for reimposed
ICO quotas which, he said, would help lift world prices.
    Somphol Kiatpaiboon, director general of the Commercial
Economics Department, said an absence of ICO quotas would
encourage producers to rapidly release coffee on to the market,
further depressing prices.
    He said Indonesia is expected to export a substantial
amount of coffee this month without such restrictions.


.I 1476
.C
earn
.W
SANWA BANK LOOKS TO SECURITIES, WORLD OPERATIONS.
    TOKYO, April 2 - The <Sanwa Bank Ltd's> three-year business
plan foresees securities and international operations making a
greater contribution to operating profits, a bank official
said.
    The bank's plan also emphasises retail and medium and
small-sized business operations, he told Reuters.
    Officials at <Fuji Bank Ltd> and <Mitsubishi Bank Ltd>
outlined similar three-year plans.
    They said lower interest rates and financial liberalisation
have cut profits from dealings with big firms to nearly
nothing.
    "They don't need us, they can do their own financing," one
official said.
    Sanwa Bank's plan forecasts that securities and
international operations will contribute 40 pct of total
operating profits by the end of the fiscal year ending March,
1990, compared with 30 pct in fiscal 1985, the Sanwa official
said.


.I 1477
.C
cocoa;trade;
.W
JAPAN DENIES PLANS TO CUT DUTIES ON CHOCOLATE.
    TOKYO, April 2 - Agriculture Ministry officials said they
are not considering cuts in import duties on chocolate to help
ease friction with the United States over agricultural trade.
    Japan has already lowered the duties sharply and we must
consider domestic market conditions, an official said.
    Duties on chocolate were cut to 20 pct from 31.9 pct in
April 1983.
    Washington has been demanding a cut to seven pct,
equivalent to its own duties, ministry sources said.
    Japanese chocolate imports rose to 8,285 tonnes in calendar
1986 from 5,908 in 1985, official statistics show.
    However, the ministry sources added it is possible the
government may make further cuts in response to strong U.S. And
European demand.
    "Due to concern about the farm trade row with the U.S.,
Top-level government officials may press the ministry to cut
the duties," one said.
    But he said it would be difficult for Japan to resolve its
overall trade row with Washington and reduce its trade surplus,
which reached 58.6 billion dlrs in 1986.
    Agricultural trade issues between Japan and the U.S.
Include Japanese import restrictions on 12 farm products.


.I 1479
.C
ipi
.W
****** German February industrial output rises 3.2 pct (January fall 3.4 pct) - official.
Blah blah blah.

.I 1480
.C
pet-chem
.W
INTERNATIONAL PACT ON OZONE DAMAGE LIKELY IN 1987.
    TOKYO, April 2 - An international protocol to severely
limit the use of industrial chemicals which are believed to
damage the earth's protective ozone layer could be signed this
year, officials and scientists here said.
    "By the end of this year, we should have an international
protocol in place we can all be proud of," U.S. Environmental
protection agency officer Bill Long told reporters.
    The chemicals are chiefly chlorofluorocarbons (CFCs) which
are used in refrigeration and making foam plastics, solvents
and aerosols. The earth's upper ozone layer absorbs most of the
harmful ultraviolet rays from the sun.
    The officials and scientists were meeting in Tokyo, ahead
of an international conference on the problem later this month
in either Vienna, or Geneva, Long said.
    Robert Watson, a program manager for atmospheric problems
at the U.S. National Aeronautics and Space Administration said
a protocol should demand an initial freeze on the use of CFCs
by industry. This should be followed by a gradual reduction in
CFC volume until no CFC gases are released into the air, he
said. The U.S. Has already banned use of use CFCs in aerosols
and Japan has asked for voluntary restraint, but both still use
CFCs in industrial processes.


.I 1482
.C
money-fx;interest;stg;
.W
U.K. MONEY RATES HARDEN ON LAWSON CURRENCY TARGETS.
     LONDON, April 2 - Money market rates rates showed a harder
edge after news U.K. Chancellor of the Exchequer Nigel Lawson
has set a target for the pound against the mark and dollar, to
be maintained by a mixture of interest rates and intervention
in the foreign exchange markets.
    Dealers said the market was surprised by the Chancellor's
disclosure of sterling target rates, around 2.90 marks and 1.60
dlrs, and nervous over the implications for domestic interest
rates, further reducing the propects for a near term cut in
U.K. Bank base rates. The key three months interbank sterling
rate gained 1/16 point at 10 9-7/8 pct.
    The pound opened three basis points lower at 71.3 in trade
weighted terms, at around 1.59 dlrs and 2.91 marks.


.I 1483
.C
ipi
.W
GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY.
    BONN, April 2 - West German industrial production,
seasonally adjusted, rose a provisional 3.2 pct in February
after a downwards revised decline of 3.4 pct in January, the
Economics Ministry said.
    The ministry had originally estimated that industrial
production fell 3.0 pct in January.
    The February figure is likely to be revised upwards by just
under one percentage point next month when the March figure is
released, a ministry statement said.
    The industrial production index, base 1980, stood at a
provisional 104.1 in February against 100.9 in January and
104.5 in December. The ministry had previously put the January
and December indices at 101.6 and 104.7 respectively.
    In February 1986 the output index had stood at 103.7,
producing a year-on-year rise for February 1987 of 0.4 pct.
    The February rise in production was aided by a sharp 19 pct
increase in construction output compared with January, when
production in many industrial sectors was depressed by
unusually severe winter weather.
    Manufacturing industry registered a 3-1/2 pct rise in
production in February compared with January. But energy sector
output fell nine pct and mining production declined seven pct.
    The ministry, which considers two-monthly comparisons to be
a better guide to trends, said output in January and February
together fell around two pct against November and December.
    The ministry said construction output fell 13-1/2 pct in
January/February against November/December due to the cold
January weather. Output in the energy sector rose four pct and
mining output 10 pct.
    Manufacturing industry's production fell 1-1/2 pct in
January/February compared with November/December.
    Within this sector, the output of both basic products and
of food, tobacco and alcohol fell 1-1/2 pct. Production of
capital goods fell 2-1/2 pct while output of consumer goods was
unchanged.
    Compared with the same months of 1986, industrial
production in January and February 1987 fell 1-1/2 pct, the
ministry said.
    Manufacturing industry output fell one pct, with output of
basic products down three pct, capital goods down one pct and
food, tobacco and alcohol production 1-1/2 pct lower. Makers of
consumer goods posted a 1-1/2 pct year-on-year rise in the
two-month period.
    In other industrial sectors, mining production fell four
pct and construction output 4-1/2 pct. The energy sector saw a
slight 1/2 pct rise, the ministry added.


.I 1484
.C
earn
.W
******Reckitt and Colman plc pretax profits 1986 yr 145.11 mln stg vs 123.39 mln.
Blah blah blah.

.I 1485
.C
acq
.W
C AND W OFFERED ROLE IN NEW JAPAN TELECOM COMPANY.
    TOKYO, April 2 - A Japanese businessman announced plans for
a new telecommunications firm in which Britain's Cable and
Wireless Plc would be a core company.
    However, the plan, unveiled by senior Federation of
Economic Organizations official Fumio Watanabe, does not
specify what stake Cable and Wireless would have.
    "The share holdings of the core companies should be equal,"
Watanabe said in a statement. "The actual percentage of
shareholdings should be agreed by the core companies."
    He said the eight core companies will provide directors for
the firm.
    "The new company shall immediately set to work on the
feasibility study of constructing a new cable for itself,"
Watanabe said.
    Watanabe has acted as mediator between two rival groups,
one of which included C and W, seeking to compete against
<Kokusai Denshin Denwa Co Ltd>, which now monopolizes Japan's
overseas telephone business.
    The Post and Telecommunications Ministry has said it wants
only one competitor to KDD and has backed Watanabe's efforts.
    A British source, who declined to be identified further,
said the proposals could open the door to further talks between
C and W <CAWL.L> and the other firms involved.
    C and W had earlier rejected a reported proposal which
would have given it a five pct share in the new
telecommunications firm, compared to the less than three pct
stake Watanabe originally proposed. C and W has a 20 pct stake
in one of the two firms Watanabe has proposed should merge.
    The British source said the decision not to specify the
exact shareholdings of the core companies could leave the door
open for further discussion.
    "It's probably a sensible approach on their part," the
British source told reuters.
    C and W has also been pushing hard for permission to lay a
new cable between Japan and the U.S.
    The proposed merger has sparked an international row, with
British government sources threatening retaliatory action
against Japan for what they see as discriminatory practices
against foreign firms.
    The sources said last Friday that one option for Britain
would be to revoke licenses of Japanese banks and securities
companies operating in London.
    The U.S. Has also attacked the original merger plans,
saying that both rival consortia should be licensed.
    Asked about participation by other U.S. And European firms,
Watanabe said, "They will not be core companies but if they wish
they could participate." Under the Japanese law, total foreign
participation would be limited to one-third.
    "It might be wise for C and W to join the new firm which has
the support of many influential backers and work within this
for the realization of their ideas," Watanabe told reporters.
    The other core firms are Mitsubishi Corp <MITT.T>, Mitsui
and Co <MITS.T>, Sumitomo Corp <SUMT.T>, Matsushita Electric
Industrial Co <MC.T>, Toyota Motor Corp <TOYO.T>, C Itoh and Co
<CITT.T>, and <Pacific Telesis International Inc>.
    Watanabe said that his latest proposal represented his
final effort.
    If it fails to satisfy the British government, it will be
up to the Japanese government to explain its position, he said.


.I 1486
.C
money-fx;interest;
.W
BANK OF FRANCE TO BUY FIRST CATEGORY PAPER TODAY.
    PARIS, April 2 - The Bank of France is to inject liquidity
against first category paper at a tender this afternoon, a Bank
spokesman said.
    Money market sources were divided as to whether they
thought the Bank of France would use the occasion to cut its
intervention rate, which has stood at 7 3/4 pct since it was
cut from eight pct on March 9.
    Some thought a rate cut unlikely given foreign exchange
turbulence and the U.S. Prime rate rise to 7 3/4 pct, while
others still counted on a 1/4 point cut by the Bank of France.


.I 1487
.C
sugar
.W
******FIRS 87/88 EC BEET SUGAR ESTIMATE UNCHANGED 12.63 MLN TONNES WHITE EQUIVALENT.
Blah blah blah.

.I 1489
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG.
    LONDON, April 2 - The Bank of England said it forecast a
shortage of around 800 mln stg in the money market today.
    Among the main factors affecting liquidity, bills for
repurchase by the market will drain some 664 mln stg while
bills maturing in official hands and the take-up of treasury
bills will take out around 508 mln stg and a rise in note
circulation some 45 mln stg.
    Partly offsetting these outflows, exchequer transactions
and bankers' balances above target will add some 380 mln stg
and 35 mln stg to the system respectively.


.I 1491
.C
sugar
.W
SUGAR OFFERED TO DUTCH INTERVENTION REFUSED.
    ROTTERDAM, April 2 - The 2,500 tonnes of sugar offered to
intervention in the Netherlands has been refused by the
intervention board because of wrong packaging, a spokeswoman
for the Ministry of Agriculture said.
    She said the sugar could be offered again to intervention.
    EC producers have threatened to sell over 800,000 tonnes of
sugar to intervention stocks as a protest against EC export
licensing policies.
    Last month Dutch traders said the sugar on offer in the
Netherlands was Belgian, but the ministry could not confirm
this.


.I 1492
.C
money-fx;reserves;
.W
RISING TAIWAN DOLLAR CAUSES FOREIGN RESERVES LOSS.
    TAIPEI, April 2 - Taiwan said its foreign reserves suffered
about 3.4 billion U.S. Dlrs in exchange rate losses from July
1986 to February 1987 as a result of the rise of the Taiwan
dollar against the U.S. Currency.
    Yu Chien-ming, head of the government statistics
department, told parliament yesterday he expected the losses to
increase as the Taiwan dollar continues to strengthen.
    The Taiwan dollar, which opened at 34.24 to the U.S. Dollar
today, has risen about 16 pct against the U.S. Unit since
September 1985. Some bankers expect it to rise to 33 by June
and to 32 by the end of this year.
    Taiwan's foreign exchange reserves now total 53 billion
dlrs. At end-February they were 52.1 billion dlrs, the world's
third largest after West Germany and Japan.
    Yu said the interest earned from the reserves totalled
about 1.68 billion U.S. Dlrs from July 1986 to February 1987.
The reserves are managed by the central bank and deposited at
about 170 leading banks in the U.S., Japan, Britain, Canada and
Singapore.
    About 75 pct of the reserves are in the form of cash,
mostly in U.S. Dollars. The rest are in government treasury
bills, certificates of deposit and bonds.


.I 1493
.C
grain;corn;sorghum;
.W
EC DENIES MAIZE EXPORTS RESERVED FOR U.S.
    BRUSSELS, April 2 - The agreement between the U.S. And the
European Community (EC) on special imports of maize and sorghum
provides an equal chance for all non-EC countries to supply the
Spanish market, an EC Commission spokeswoman said.
    She denied that any unpublished clause of the agreement
guaranteed the bulk of the maize export business would go to
the U.S., As one EC official told Reuters yesterday.
    Under the agreement, the EC will import two mln tonnes of
maize and 300,000 tonnes of sorghum a year into Spain at
specially reduced levy rates for the next four years.
    The Commission has yet to decide whether the maize will
come in through direct purchases by the Spanish intervention
board or by a tender system.


.I 1494
.C
money-fx;interest;stg;
.W
U.K. MONEY RATES FIRM ON LAWSON STERLING TARGETS.
    LONDON, April 2 - Interest rates on the London money market
were slightly firmer on news U.K. Chancellor of the Exchequer
Nigel Lawson had stated target rates for sterling against the
dollar and mark, dealers said.
    They said this had come as a surprise and expected the
targets, 2.90 marks and 1.60 dlrs, to be promptly tested in the
foreign exchange markets. Sterling opened 0.3 points lower in
trade weighted terms at 71.3.
    Dealers noted the chancellor said he would achieve his
goals on sterling by a combination of intervention in currency
markets and interest rates.
    Operators feel the foreign exchanges are likely to test
sterling on the downside and that this seems to make a fall in
U.K. Base lending rates even less likely in the near term,
dealers said.
    The feeling remains in the market, however, that
fundamental factors have not really changed and that a rise in
U.K. Interest rates is not very likely. The market is expected
to continue at around these levels, reflecting the current 10
pct base rate level, for some time.
    The key three months interbank rate was 1/16 point firmer
at 10 9-7/8 pct.

.I 1496
.C
wheat;grain;
.W
AWB CALLS FOR TIGHTER WHEAT QUALITY CONTROLS.
    MELBOURNE, April 2 - Australia is risking wheat export
sales by not providing enough specific quality grades to meet
buyer requirements, the Australian Wheat Board (AWB) said.
    "Many AWB customers are becoming increasingly quality
conscious, demanding strict adherence to contractual quality
specifications," the board said in a submission to the Royal
Commission into Grain Storage, Handling and Transport.
    "Many of the specifications are more specific than the
current categories used in Australia," it said.
    The commission is trying to identify ways of saving costs
and boosting efficiency of the grain handling system.
    Australia must rely on quality to retain its wheat market
share because its competitors are supplying cheaper but
lower-quality grades, the AWB submission said.
    It stressed the need to segregate wheat categories at every
stage from receival to shipping.
    Better industrial relations at grain terminals, more
uniform transport systems across the states and extensive stock
control were vital to improved marketing, it said.
    The submission also said Australia's federal system impeded
the AWB's role of coordinating and managing the marketing of
wheat.
    The AWB called for an end to physical and legislative
constraints at state borders that prevent the efficient
transport of grains to other states for shipment.
    "It is essential that wheat moves by the most economic mode
to the nearest efficient port, irrespective of the state in
which the wheat is grown or stored," it said.
    For example, wheat grown in northern New South Wales (NSW)
might move more efficiently to Brisbane, in Queensland, than to
Sydney or Newcastle in New South Wales, it said. Similarly,
southern NSW wheat might better be shipped to Portland or
Geelong, in Victoria.
    Legislation giving state rail authorities a monopoly over
grain shipments was one notable impediment, it said.
    The AWB said the current approach of state-based bulk
handling authorities is not essential, although it said it
favoured the authorities maintaining at least their current
level of control of storage and transport as long as quality
was maintained.
    An appendix on port loading costs showed it cost between
26,500 and 34,700 U.S. Dlrs to load a 50,000-tonne vessel at
various Australian ports compared with 21,200 dlrs at Houston
and 16,300 at Port Cartier, Quebec, for a 60,000-tonner.


.I 1497
.C
earn
.W
******Bayer world group 1986 pre-tax profit 3.30 billion marks (3.15 billion) - official.
Blah blah blah.

.I 1498
.C
dlr;money-fx;
.W
JAPAN MINISTRY ASKS TRUST BANKS TO CUT DLR SALES.
    TOKYO, April 2 - The Finance Ministry has asked trust banks
to moderate their dollar selling, trust banking sources said.
    A Ministry official told Reuters earlier this week the
Ministry had recently surveyed foreign exchange transactions by
institutional investors, but he declined to say whether this
was aimed at moderating the dollar sales.
    Dealers said institutional investors were reluctant to sell
dollars aggressively today partly because of the Ministry
monitoring.
    One senior trust bank source said that while sympathizing
with the Ministry position, the trust banks had to conduct
their foreign exchange operations according to the dictates of
the market.
    A Bank of Japan official said the central bank approved of
the survey as long it was not used too forcefully.
    But another official denied local press reports that the
central bank itself had asked investors to moderate their
dollar sales. "We are not legally authorized to do that," he
said.
    A Bank of Japan official also said the central bank will
renew its call on financial institutions to moderate excessive
loans for the purpose of land and securities investment as such
investments threaten to cause inflation.
    Bank of Japan Governor Satoshi Sumita had previously
expressed concern about excessive investment in land and
securities resulting partly from eased credit conditions.


.I 1499
.C
sugar
.W
EC SUGAR TENDER SAID TO MARK NO CHANGE IN POLICY.
    BRUSSELS, April 2 - The maximum rebate granted at
yesterday's European Community (EC) sugar tender marked no
change in policy towards producers' complaints that they are
losing money on exports outside the EC, EC commission sources
said.
    They said this was despite the fact that the commission
accepted over 785,000 tonnes of sugar into intervention
yesterday from traders protesting that rebates are being set
too low.
    The maximum rebate at yesterday's tender was 46.864 Ecus
per 100 kilos, up from 45.678 Ecus the previous week.
    London traders said yesterday the rebate was the largest
ever granted. The commission sources said today the increase
was entirely explained by world market conditions. The amount
by which the rebate fell short of what producers claim is
needed to obtain an equivalent price to that for sales into
intervention remained at 0.87 Ecus per 100 kilos, they said.
    Operators offered a total of 854,000 tonnes of sugar into
intervention last month to protest at rebates which they said
were too low. The sources said about 706,470 tonnes of French
sugar and 79,000 tonnes of German sugar had been accepted, the
remainder being rejected as of too low quality.
    The sources noted the operators could withdraw their offers
in the five week period between the acceptance of the sugar and
payment for it.
    They said they saw no sign of planned withdrawals as yet,
adding that they would expect operators to wait another week or
two to review commission policy before making up their minds.
    The sources said the commission felt entitled to offer
rebates at slightly below the level theoretically justifiable
in the light of its 1987/88 farm price package proposal to
reduce guaranteed prices for sugar by two pct from the start of
the new season in July.


.I 1500
.C
coffee
.W
KENYAN COFFEE NEEDS RAIN, TRADERS SAY.
    NAIROBI, April 2 - Kenya's late coffee crop is flowering
well, but the main coffee areas were generally dry and hot in
the week ended Wednesday, trade sources said.
    "Machakos, Embu, Meru and Kirinyaga in eastern Kenya, and
Nyeri and Thika in central, have been dry in the past week. The
farmers expect rain this week. If it does not fall output of
the late (October-November-December) crop will decline sharply,"
one source said.
    He said that since most growers did not irrigate their crop
they could do nothing but wait for rain, the main factor which
determines Kenyan coffee production.
    Two months ago the International Coffee Organization issued
a forecast of Kenyan exportable coffee production in the
1986/87 (Oct-Sept) season at 1.82 mln bags.


.I 1501
.C
oilseed;veg-oil;soybean;soy-meal;soy-oil;
.W
CARGILL U.K. STRIKE TALKS BREAK OFF WITHOUT RESULT.
    LONDON, April 2 - Two days of talks between management and
unions to try to end the 3-1/2 month labour dispute at Cargill
U.K. Ltd's oilseed crushing plant at Seaforth ended yesterday
without resolving the situation, a company spokesman said.
    Fresh talks are expected to be held early next week but the
actual date has not yet been fixed, he added.
    Oilseed processing at the mill has been at a standstill
since December 19 and the company has declared force majeure
for deliveries of soymeal and soyoil ahead to May.


.I 1502
.C
coffee
.W
PRICES RISE AT BANGALORE COFFEE AUCTION.
    BANGALORE, India, April 2 - Prices rose at the fortnightly
export auction here on March 25 for sales of 1,907.1 tonnes of
coffee from the 1986/87 and 1985/86 crops out of a total
offering of 1,940.7 tonnes, the Coffee Board said.
    Withdrawals amounted to 33.6 tonnes. The type and grade,
quantity sold, average prices in rupees per 50 kilos, exclusive
of sales tax, with previous prices at the March 11 auction in
brackets -
    1986/87 crop
    Plantation "A" 592.2   1,284.50 (1,223.50)
    Plantation "B" 74.1    1,095.50 (1,122.00)
    Plantation "C"        208.2    1,019.00 (1,017.50)
    Arabica Cherry "AB"    33.3      976.50  (NA)
    Arabica Cherry "PB"    22.5      949.00  (NA)
    Arabica Cherry "C"     58.2      889.50  (NA)
    Robusta Cherry "AB"    90.9    1,256.00  (NA)
    Robusta Cherry "PB"    43.8    1,039.50  (NA)
    Robusta "PMT AB"       49.2    1,255.50  (NA)
    Robusta "PMT PB"       13.5    1,200.00  (NA)
    REP Bulk "A"           93.9    1,057.50 (908.50)
    REP Bulk "B"          256.5    1,079.00 (930.00)
    Robusta Cherry Bulk    40.2   1,082.50  (NA)
    Robusta Cherry "C"      9.0     997.00  (NA)
    Robusta Cherry "BBB"    9.6     700.00  (NA)
    1985/86 crop
    Arabica Cherry "AB"   123.3     961.00  (951.50)
    Arabica Cherry "BBB"  160.8     635.50  (613.50)
    Robusta Cherry "BBB"    4.2     735.00  (704.50)
    Monsooned coffee
    Monsooned Robusta "AA" 23.7   1,265.50  (NA)


.I 1504
.C
wheat;grain;barley;
.W
U.K. GRAIN EXPORTS CONTINUE TO RISE SHARPLY.
    LONDON, April 2 - The U.K. Exported 517,600 tonnes of wheat
and 315,800 tonnes of barley in the first 25 days of March, the
Home Grown Cereals Authority (HGCA) said, quoting provisional
Customs and Excise figures.
    This brought combined wheat and barley exports since the
season started on July 1 to 7.60 mln tonnes, substantially up
on the 4.02 mln exported in the same 1985/86 period.
    This season's total comprises 3.94 mln tonnes of wheat and
3.66 mln barley, compared with 1.63 mln and 2.39 mln,
respectively, a year ago.


.I 1505
.C
wpi;money-supply;
.W
INDIA'S CREDIT POLICY AIMS TO CONTROL LIQUIDITY.
    NEW DELHI, April 2 - India's credit policy package for
fiscal 1987/88 (April-March) will help ease inflationary
pressures and control the growth of overall liqudity, the
Reserve Bank of India (RBI) said in a statement.
    The package, announced earlier this week, will raise
commercial bank statutory liquidity ratios to 37.5 pct from 37
pct, effective April 25, and will increase cash reserve ratios
on foreign currency (non-resident) accounts to 9.5 pct from
three pct, effective May 23, it said.
    Excess liquidity pushed wholesale and consumer retail
prices higher in 1986/87 on previous year levels, RBI governor
R. N. Malhotra said in a statement.
    Malhotra said India's M-3 money supply grew 209.24 billion
rupees in the fiscal year to March 13, compared to a growth of
155.38 billion in the same period the year before.
    Commercial bank aggregate deposits rose to 164.10 billion
in the same period, against 120.66 billion in the corresponding
months of fiscal 1986/87, he said.
    The Finance Ministry in a report issued in February
predicted India's fiscal 1986/87 wholesale price-linked
inflation rate at about 6.5 pct against 3.8 pct in 1985/86.


.I 1508
.C
earn
.W
BAYER CONFIDENT OF POSTING GOOD 1987 RESULTS.
    LEVERKUSEN, West Germany, April 2 - Chemicals group Bayer
AG <BAYG.F> said it expects to post another good result in 1987
after raising pre-tax profit to a new record high in 1986.
    The company said that this was despite the mark's further
strengthening against the dollar and other currencies and
despite an increase in competitive pressure.
    "The further progress of our business will depend largely on
the extent to which threats to free trade materialise and on
the developments of exchange rates, raw material and energy
costs.
    Bayer said world group pre-tax profit rose to 3.30 billion
marks in 1986, exceeding the previous year's record of 3.15
billion. Parent company pre-tax profit increased to 1.72
billion from 1.62 billion.
    The company gave no net profit figures or any indication of
the likely 1986 dividend. Bayer paid a 10-mark dividend on 1985
results, up one mark from a year earlier.
    Bayer said that world group operating profit declined
slightly in 1986 against 1985 but non-operating results showed
a further improvement.
    Bayer said that the decline in world group turnover to
40.75 billion marks from 45.93 billion in 1985 reflected mainly
the sharp fall in the dollar against the mark.
    Lower prices on the raw material side had also brought
pressure on selling prices, it added.
    In volume terms, however, 1986 sales rose slightly against
1985, the company said without giving details.
    "The western Europe, North America and Far East regions
developed well in local currency, but here too the translation
of local currency sales into marks distorted the picture,
especially in the case of North America," it said.
    Bayer said parent company volume sales were also higher in
1986, although turnover fell 4.3 pct to 16.77 billion marks.
    Capacity use was high at the parent company in 1986,
resulting in a decline in marginal unit costs. This, combined
with savings in raw material and energy costs, helped offset
falling prices and cost increases in other areas.
    The rise in pre-tax parent company profit was due to lower
extraordinary expenses and higher net interest income.
Plastics, organic chemicals, polyurethanes and coating raw
materials all developed well, it said.
    Turning to the 1986 fourth quarter, Bayer said that world
group turnover fell to 9.67 billion marks in the last three
months of 1986 from 10.43 billion in the same 1985 period.
    Parent company turnover in the fourth quarter fell 7.1 pct
to 3.69 billion marks, with domestic turnover 4.1 pct lower and
foreign turnover 8.6 pct lower.
    Exports accounted for 65.3 pct of turnover in the quarter
against 66.4 pct in the same quarter of 1985.


.I 1509
.C
reserves
.W
****** UK reserves rise underlying 1.785 billion dlrs in March - official.
Blah blah blah.

.I 1511
.C
reserves
.W
U.K. RESERVES SHOW LARGE UNDERLYING RISE IN MARCH.
    LONDON, April 2 - Britain's gold and currency reserves
showed an underlying rise of 1.785 billion dlrs in March after
a 287 mln dlr rise in January, the Treasury said.
    This was considerably above market expectations for a 650
mln dlr rise.
    The underlying trend, which is a guide to Bank of England
operations to support the pound on foreign exchanges, is net of
borrowings and repayments.
    The Treasury declined comment on the figures. Last month it
said the Bank of England took the opportunity of strong demand
to rebuild reserves after losses last autumn.
    Actual reserves rose by 1.89 billion dlrs, after rising 305
mln in February, to 22.26 billion. Total reserves were revalued
to 27.04 billion dlrs, but would have totalled 24.15 billion
under the previous valuation, the Treasury said. Gold reserves
were revalued by 895 mln dlrs, while SDRs, ECU and convertible
currency holdings were revalued by 1.995 billion.
    Accruals of borrowings under the exchange cover scheme were
361 mln dlrs last month, after 36 mln in February. Repayments
were 240 mln dlrs after the previous 16 mln. Capital repayments
totalled 14 mln dlrs, after February's two mln dlrs repayment.


.I 1512
.C
grain;corn;
.W
ZAMBIA EXPECTS SHARPLY REDUCED MAIZE CROP.
    LUSAKA, April 2 - Zambia's marketed maize production will
probably fall to less than 630,000 tonnes in 1986/87 (May-Apr),
from 918,000 last year, because of poor rainfall in major
producing areas, Agriculture Minister Kingsley Chinkuli said.
    He told Parliament that in the southern provinces the
harvest would be over 50 pct down on the level in the previous
marketing year.
    "The nation would be lucky to produce over seven mln bags
(630,000 tonnes) of maize this year," he stated.
    Chinkuli added that Zambia was setting up an irrigation
fund with Canadian aid to lessen the effects of poor rainfall.


.I 1513
.C
dlr;money-fx;
.W
JAPAN ASKS BANKS TO MODERATE DOLLAR SALES - JIJI.
    TOKYO, April 2 - The Finance Ministry has asked commercial
banks to moderate their dollar sales, JiJi News Agency
reported, quoting financial sources.
    Finance Ministry officials were unavailable for comment.
The report also could not be confirmed by several bank dealers.
    Earlier, Japanese trust banking sources said the Ministry
had asked them to moderate their dollar sales.
    A Ministry official said earlier this week the ministry had
recently surveyed currency transactions by investors, but
declined to say whether this aimed at reducing their dollar
sales.


.I 1515
.C
oilseed;pet-chem;
.W
ZIMBABWE BANS POLYPROPYLENE BAGS FOR OILSEEDS.
    HARARE, April 2 - Zimbabwe's Grain Marketing Board has
banned the packing of oilseeds in locally-made polypropylene
bags and will supply jute bags instead, board officials said.
    It said the quality of oilseeds such as soybeans,
groundnuts and sunflower seed packed in polypropylene bags
deteriorated after two weeks.
    Zimbabwe began producing 10 mln polypropylene grain bags
this year to replace jute bags imported mainly from Bangladesh.


.I 1517
.C
acq
.W
GUINNESS TO SELL RETAIL INTERESTS.
    LONDON, April 2 - Guinness Plc <GUIN.L> said that as part
of a new strategy for the company it will be selling its retail
interests to concentrate resources on developing its
international beverage businesses.
    Among the firms to be sold are Martin's and Gordon Drummond
pharmacies, the 7-Eleven convenience stores, speciality U.S.
Food importer Richter Brothers and the health products company
Nature's Best/DSL.
    Guinness said in a statement that the company's strength
was in its well known beer and spirits brands.
    Several had good brand development potential, including
Gleneagles, Champneys, Cranks, Hediard and and Guinness
publications.
    Guinness shares were trading at 323p after the announcement
after closing yesterday at 317p.


.I 1518
.C
gold
.W
INDUSTRIAL ACTION ENDS AT SOUTH AFRICAN MINE.
    JOHANNESBURG, April 2 - About 8,000 black miners returned
to work after a week-long industrial action at South Africa's
largest gold mine, mine owner Anglo American Corp of South
Africa Ltd <ANGL.J> said.
    A spokesman for the mining house said the action started on
Wednesday last week when thousands of miners staged a go-slow
at One underground shaft of the Free State Geduld division of
Free State Consolidated Gold Mines Ltd <FSCN.J>.
    The action later escalated into an underground sit-in at
the mine over the weekend, prompting management to close the
affected shaft because of what the company described as "the
creation of unsafe working conditions."
    Anglo American spokesman John Kingsley-Jones said the
company held talks with the National Union of Mineworkers
(NUM), South Africa's biggest trade union which claims a
membership of 360,000 black workers, but failed to establish
the cause of worker dissatisfaction. He acknowledged that the
mine suffered a loss of production, but declined to give
estimates.
    Free State Consolidated last year produced 104 tonnes of
gold from 28 underground shafts.
    The NUM was not immediately available for comment on the
action. But a spokesman for the union earlier told the South
African Press Association that miners had been locked out of
the mine at the weekend after staging a strike in protest
against being ordered to carry bags containing explosives as
well as food for white miners.


.I 1519
.C
acq
.W
COMPROMISE CITED ON SAN MIGUEL SHARES.
    MANILA, April 2 - <San Miguel Corp>, SMC, and <United
Coconut Planters Bank>, UCPB, have reached a compromise on a
disputed block of 38.1 mln shares of SMC, the head of a
government panel that controls the sequestered shares said.
    Ramon Diaz, Chairman of the Presidential Commission on Good
Government (PCGG) told Reuters SMC had offered a price of 126
pesos per share for the block, held in trust by the UCPB.
    "It looks good," Diaz said. But he added several issues,
including the identity of the ultimate buyers of the shares,
had to be resolved before the PCGG gave its approval to the
sale.
    The PCGG's sequestration last year of 33 mln shares aborted
SMC's bid to buy them back from 14 trading companies in the
UCPB group. The commission said it suspected the shares were
actually controlled by Eduardo Cojuangco, an associate of
former President Ferdinand Marcos.
    Cojuango, who headed the boards of both SMC and UCPB when
he fled last year after Marcos was toppled, personally owned 24
mln shares in SMC. His holdings are also under sequestration.
    "The shares that SMC now proposes to buy from the UCPB are
owned by 1.4 mln coconut farmers," Diaz said. "Naturally we do
not want them to go back into the hands of Marcos cronies."
    PCGG sources said a compromise would end a row over a down
payment of 500 mln pesos made by SMC's Hong Kong subsidiary
Neptunia Corp Ltd in a bid to buy back the shares last year.
    The UCPB had said the 500 mln peso payment would be
forfeited because SMC Chairman Andres Soriano III had failed to
fulfil his commitment to buy back the shares at an originally
negotiated price of 3.3 billion pesos.
    PCGG sources said SMC, the Philippines' largest food and
beverage manufacturer, has agreed to sell 14 mln "B" class shares
from the 38.1 mln shares to Australian brewer Alan Bond at a
price of 150 pesos per share.
    The PCGG sources said of the proposed 4.79 billion peso
transaction, 1.6 billion pesos would be offset against the 500
mln peso down payment, the 500 mln pesos worth of preferred
shares in UCPB held by SMC, 210 mln pesos in uncollected
dividends on the UCPB shares and 400 mln pesos advanced to
UCPB-controlled trading companies.
    The UCPB rejected an original offer of 100 pesos per share
made by SMC for 33 mln shares, which grew to 38 mln after a 15
pct stock dividend declared in June last year.
    A spokesman for SMC said the company's 15-member board met
today to discuss the proposed compromise.
    The spokesman declined comment on the outcome of the board
meeting, saying the dispute was under arbitration.
    President Corazon Aquino last month asked SMC and UCPB to
set up a three-man arbitration panel to resolve the ownership
issue. The panel is due to submit its report by April 15.
    Eduardo de Los Angeles, a government nominee in the SMC
board, filed a formal complaint before the Securities and
Exchange Commission last week, accusing Soriano and eight other
directors of violating "fiduciary duty."
    De Los Angeles was said to have opposed a decision by SMC's
board last December to assume the 500 mln peso Neptunia loan.


.I 1523
.C
money-fx;interest;stg;
.W
LAWSON REMARKS DASH HOPES OF EARLY U.K. RATE CUT.
    LONDON, April 2 - Chancellor of the Exchequer Nigel
Lawson's remarks yesterday suggesting there are precise
exchange rate targets for the pound undermined sterling,
dashing hopes for an early cut in U.K. Base rates, analysts
said.
    But the market's reaction, testing exchange rate levels
indicated by Lawson, was probably overdone and the longer term
outlook for sterling remained bullish, they agreed.
    In an apparent break with the previous policy of secrecy,
Lawson told a National Economic Development Council meeting he
was comfortable with sterling exchange rates around current
levels, specifying rates of around 1.90 marks and 1.60 dlrs.
    Lawson added the U.K. Government intended to keep sterling
at about present levels, using currency intervention and
interest rates to achieve this.
    The February 22 Paris agreement of the Group of Five and
Canada to stabilise exchange rates is widely believed to
include target ranges, but all participants to the meeting had
so far refused to specify these.
    Markets were quick to react to the statement, chopping
about one U.S. Cent and over one pfennig off the pound to match
the levels mentioned by Lawson.
    But most analysts polled said they did not believe Lawson's
statement signalled a change in U.K. Policy.
    Keith Skeoch, chief economist at stockbrokers James Capel
and Co, said, "the remarks have been blown out of proportion.
Lawson is paying now for a little bit of a slip of the tongue."
    Barclays de Zoete Wedd economist Mark Brett said, "there is
nothing great and fantastic in the Chancellor's statement."
    He said he did not believe the rates indicated by the
Chancellor were precise targets, but merely represented central
rates around which sterling would be allowed to fluctuate,
perhaps by as much as 10 pct.
    "It would be insane to pinpoint an exchange rate ahead of an
election ... I don't believe Lawson is mad enough to tie
himself to a fixed rate," Brett said.
    Currency markets were keen for official statements to
clarify the scope of the Paris accord and reactivate currency
trading. This mood easily led to over-reaction, analysts said.
    "Making similar statements when the market is high strung
and ready to bounce is perhaps a mistake," one senior dealer
with a U.S. Bank said.
    Capel's Skeoch said, "it gives the foreign exchange markets
something to shoot at."
    "It is obvious that the government, as a member of the Group
of Six, has agreed exchange rate bands. But they are not cut in
stone, they can change with time," Skeoch said.
    Brett said, "we think the 2.90 marks level is a central
rate. Give or take 10 pfennigs and all is fine."
    Not all analysts played down the significance of the
remarks, however. Chris Dunn, economist at Royal Bank of
Canada, said the remarks may signal a decisive move to insulate
sterling from the fortunes of the dollar.
    Although about two-thirds of Britain's trade is conducted
with European countries, sterling has traditionally shadowed
the dollar rather than the mark, analysts noted.
    "Britain must decide whether it wants to follow the U.S. Or
throw in its lot with Europe," Dunn said.
    "It suggests that while the U.K. Is not actually applying to
join the European Monetary System, it is seeking protection by
shadowing it ... The Bundesbank has made it clear that it wants
the U.K. To clarify its position relative to the mark," he said.
    Analysts said sterling's dip on currency markets following
Lawson's remarks made an early half-point cut in U.K. Base
rates from current 10 pct levels unlikely in the short term.
    "Over the next three weeks, a cut is out, unless we get some
extremely good economic indicators," Capel's Skeoch said.
    Base rates have been cut twice by one-half point in March,
the last after the March 17 budget presentation, and analysts
had been expecting another half point cut shortly afterwards.


.I 1524
.C
earn
.W
******NV HOOGOVENS 1986 NET PROFIT 154.6 MLN GUILDERS VS 278.8 MLN -- OFFICIAL.
Blah blah blah.

.I 1525
.C
acq
.W
RANK MAKES INCREASED AVANA OFFER FINAL.
    LONDON, April 2 - Ranks Hovis McDougall Plc <RHML.L> said
it was making an increased and final offer for the Avana Group
Plc <AVNA.L>. The company already holds about 22.9 pct or 7.1
mln Avana ordinary shares.
    It said in a statement the terms of the offer will be 13
new Rank Hovis shares for every five Avana ordinary shares,
valuing each Avana share at 829p.
    Avana shareholders will be entitled to receive and retain
the net interim dividend of 5.25p per Avana share for the year
ending 28 March 1987.
    Accepting Avana shareholders will also be entitled to
receive Ranks Hovis's forecast net interim dividend of 2.65p
for the financial year ending 5 September 1987.
    Ranks Hovis said that full acceptance of the increased
offer would result in the issue of a maximum of 72.3 mln new
Ranks Hovis shares or about 20 pct of the enlarged issued
ordinary share capital of the company.
    The latest offer will lapse on 17 April. Ordinary
shareholders in Avana who accept the increased offer will have
the opportunity to elect for cash for all or part of their
holdings on the basis of 800p cash for each Avana share.
    Ranks Hovis said the cash required for the cash alternative
would be met by one of several methods.
    For the first 10 mln Avana shares received opting for the
cash alternative, Ranks Hovis would make a cash payment from
its own resources.
    For cash alternatives of more than 10 mln Avana shares,
Morgan Grenfell, as agent for participants, will make a
separate offer to purchase at 300p per share, net of expenses,
up to 46.3 mln Ranks Hovis new shares to which such
shareholders will be entitled under the increased offer. This
is equivalent to 780p per Avana ordinary.
    In addition, Ranks Hovis will make a further cash payment
of 20p per Avana ordinary. Avana shares traded at 800p after
the announcement, 32p up from last night's close of 768p.

.I 1529
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 345 MLN STG ASSISTANCE.
    LONDON, April 2 - The Bank of England said it had provided
the money market with 345 mln stg help in the morning session.
This compares with its forecast of a shortage of around 800 mln
stg in the system today.
    The central bank made outright purchases of bank bills
comprising 58 mln stg in band one at 9-7/8 pct, 227 mln stg in
band two at 9-13/16 pct, 56 mln stg in band three at 9-3/4 pct
and four mln stg in band four at 9-11/16 pct.
    Dealers noted that this was the first time bills in band
four, which have a maturity of between two and three months,
have been dealt in the market since mid-February.


.I 1530
.C
acq
.W
CABLE UNIMPRESSED BY NEW JAPANESE TELECOMS OFFER.
    LONDON, April 2 - Cable and Wireless Plc <CAWL.L> said new
proposals unveiled by Japan for it to become a core member of a
merged telecommunications firm to compete for
telecommunications contracts did not remove the group's
objections.
    The suggestions by Federation of Economic Organisations
official Fumio Watanabe was a formal announcement of proposals
made earlier this week and reported in the Japanese press.
    Cable has a 20 pct stake in one of the two groups trying to
compete against Japan's <Kokusai Denshin Denwa Co Ltd> which
monopolises Japan's overseas telephone business.
    But a Cable spokesman said it still believed a merger of
the two consortia would be impracticable. "They are like oil and
water," he said.
    The Japanese authorities want only one competitor and have
proposed that the two consortia band together. The issue has
been taken up by the British government as a test case on the
openness of Japanese markets. Watanabe's latest proposals said
that the eight core companies of the new group should have
equal share holdings but added that they could work out the
precise percentages amongst themselves.
    The reports earlier this week said that Cable would be
offered a five pct stake, up from an originally proposed three
pct.
    Despite the apparent differences in stakes offered, the
Cable spokesman said the two offers appeared to be essentially
the same.
    Cable shares at 1100 GMT were quoted nine pence firmer at
374p.


.I 1531
.C
interest
.W
****** Bundesbank leaves credit policies unchanged.
Blah blah blah.

.I 1532
.C
money-fx;interest;
.W
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED.
    FRANKFURT, March 2 - The Bundesbank left credit policies
unchanged after today's regular meeting of its council, a
spokesman said in answer to enquiries.
    The West German discount rate remains at 3.0 pct, and the
Lombard emergency financing rate at 5.0 pct.


.I 1533
.C
trade
.W
JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED.
    TOKYO, April 2 - Japan is doing all it can to solve its
trade problems with the United States but the two nations will
remain at odds as long as the trade account is lopsided in
Japan's favour, a senior official said.
    "So long as there is an external imbalance there will be
trade friction and ...Harsh words between the two governments,"
the Foreign Ministry official told reporters.
    Last year, Japan racked up a 51.5 billion dlr surplus with
the United States and economists said they do not see it
falling significantly any time soon.
    Washington announced plans last week to slap up to 300 mln
dlrs in tariffs on Japanese electronic goods, raising the
spectre of a trade war between the two countries.
    "We take the current situation very seriously," said the
official, who declined to be identified. "The basic stance of
the Japanese government is to tackle the issues with all
available resources."
    The United States has accused Japan of reneging on an
agreement that called on it to stop selling cut-price computer
microchips in world markets and to try to import more American
semiconductors. Tokyo has denied the charges.
    The Foreign Ministry official refused to rule out Japanese
retaliation if America went ahead with its threatened tariffs
in the middle of this month. But he said that any response
would be in accordance with international law and Japan's
international obligations.
    He added that both Japan and the United States must take
account of the impact of their dispute on their own and the
world economy.


.I 1534
.C
wheat;grain;
.W
FRANCE SOLD WHEAT FLOUR TO CHINA - ONIC.
    PARIS, April 2 - France has sold between 50,000 to 100,000
tonnes of wheat flour to China, the Director General of
France's Cereal Intervention Board (ONIC) Bernard Vieux said.
    He gave no further details of the sale, but added French
millers were worried about the unfair competition facing French
flour due the lack of end-of-season storage premiums for wheat.
    ONIC raised its estimate of 1986/87 flour exports to 1.70
mln tonnes compared 1.65 mln forecast in March and the 1.87 mln
exported in 1985/86.


.I 1536
.C
acq
.W
DECISION EXPECTED ON U.K ROYAL ORDNANCE SALE.
    LONDON, April 2 - U.K. Defence secretary George Younger is
expected to announce the government's decision on the sale of
state-owned arms manufacturer <Royal Ordnance> today,
parliamentary sources said.
    The government originally intended to float the munitions
and explosives concern on the stock market, but last July said
a private sale was a more appropriate way to dispose of the
firm.
    The bidders for the company were British Aerospace Plc
<BAEL.L> and engineering group GKN Plc <GKN.L>. Royal Ordnance
sold its Leeds tank factory last summer to Vickers Plc
<VICK.L>.
    Defence electronics manufacturer Ferranti Plc <FNTI.L> and
shipping and property group Trafalgar House Plc <THSL.L> both
pulled out of the bidding shortly before last month's deadline.
    Royal Ordnance made pre-tax profits of 26 mln stg on sales
of 487 mln stg in calendar 1985, its first full year of
commercial operation. The company has assets of around 240 mln
stg and employs 17,000 at 15 sites in Britain.
    Other state-held companies earmarked for privatisation this
year include engine maker <Rolls Royce Plc> and the <British
Airports Authorities Plc>.


.I 1537
.C
gnp
.W
JAPANESE GROUPS URGE DRASTIC ECONOMIC PACKAGE.
    TOKYO, April 2 - Japan's leading economic organisations
urged the Government to prepare drastic pump-priming measures
even at the cost of shelving Prime Minister Yasuhiro Nakasone's
planned tax reforms, officials involved said.
    Officials of the Federation of Economic Organisations
(Keidanren) said in a meeting with government officials the
Government should issue construction bonds as an emergency
measure to prop up the economy.
    Keidanren suggested that proceeds from sales of stocks in
the newly-privatised Nippon Telegraph and Telephone Corp should
also be used to stimulate the economy.
    Keidanren Chairman Eishiro Saito said the dollar's fall
below 150 yen would create huge unemployment and bankruptcies
that could shake the foundation of the Japanese economy.
    The Keidanren meeting coincided with a written request for
drastic reflationary measures sent to the Government by the
Japan Chamber of Commerce and Industry.
    Both organisations called for stepped-up Bank of Japan
intervention to stabilise exchange rates.
    Chamber head Noboru Gotoh told a press conference the
awaited economic package should be powerful enough to push up
Japan's Gross National Product (GNP) by about two pct.
    Gotoh said the Government could cope with the present
critical economic condition even if it put off its plan to stop
the issue of deficit-covering bonds by fiscal 1990.
    The plan to reduce the fiscal budget is a pillar of
Nakasone's fiscal reconstruction program.


.I 1538
.C
sugar
.W
SYRIA SEEKING WHITE SUGAR ON APRIL 8 - TRADE.
    LONDON, April 2 - Syria will hold a buying tender on April
8 for 36,000 tonnes of white sugar for shipment in June, July
and August at a rate of 12,000 tonnes a month, traders said.


.I 1539
.C
earn
.W
HOOGOVENS EXPECTS CLEAR LOSS IN 1987.
     IJMUIDEN, The Netherlands, April 2 - <Koninklijke
Nederlandsche Hoogovens en Staalfabrieken NV> said it expected
a "clear loss" for 1987.
     The company reported its 1986 profits were 44 pct lower at
154.6 mln guilders than in the year before.
     Turnover was 18 pct lower than in 1985.
     The main reason fo the fall in turnover was the lower rate
of the dollar, the company said. The lower costs for raw
materials and energy, resulting from the lower dollar, could
not compensate the fall in revenues.
     Costs 5.61 billion guilders vs 6.66 billion
     Depreciation 457 mln vs 493 mln
     Operating profit 375 mln vs 598 mln
     Financial charges 155.1 mln vs 169.4 mln
     Extraordinary loss 12 rpt 12 mln vs 138 mln
     Crude steel production five mln tonnes vs 5.3 mln
     Aluminium production 96,000 tonnes vs same.


.I 1540
.C
cpi
.W
GERMAN MARCH COST OF LIVING DATA CONFIRMED.
    WIESBADEN, April 2 - The cost of living was unchanged in
March compared with February but stood 0.2 pct lower than in
the same month in 1986, the Federal Statistics Office said.
    This confirms provisional figures released at the end of
last month.
    In February the cost of living in West Germany rose 0.1 pct
from January to stand 0.5 pct lower than in February 1986.


.I 1541
.C
coffee
.W
SEASONAL STABILISATION SEEN FOR COFFEE PRICES.
    HAMBURG, April 2 - The onset of cooler weather in Brazil
during the southern hemisphere winter is expected to have a
stabilising effect on a weak coffee market, West German trade
sources said.
    "The annual fear of frost in Brazil will probably grip the
market sometime this month until June or early July," one trader
said.
    The trade believes the International Coffee Organization
(ICO) is unlikely to tackle the re-introduction of quotas
before its September meeting and until then the market will not
see any unexpected sharp moves in either direction.


.I 1542
.C
ipi
.W
GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY.
    BONN, April 2 - West German industrial production,
seasonally adjusted, rose a provisional 3.2 pct in February
after a downwards revised decline of 3.4 pct in January, the
Economics Ministry said.
    The ministry had originally estimated that industrial
production fell 3.0 pct in January.
    The February figure is likely to be revised upwards by just
under one percentage point next month when the March figure is
released, a ministry statement said.
    The industrial production index, base 1980, stood at a
provisional 104.1 in February against 100.9 in January and
104.5 in December. The ministry had previously put the January
and December indices at 101.6 and 104.7 respectively.
    In February 1986 the output index had stood at 103.7,
producing a year-on-year rise for February 1987 of 0.4 pct.
    The February rise in production was aided by a sharp 19 pct
increase in construction output compared with January, when
production in many industrial sectors was depressed by
unusually severe winter weather.
    Manufacturing industry registered a 3-1/2 pct rise in
production in February compared with January. But energy sector
output fell nine pct and mining production declined seven pct.
    The ministry, which considers two-monthly comparisons to be
a better guide to trends, said output in January and February
together fell around two pct against November and December.
    The ministry said construction output fell 13-1/2 pct in
January/February against November/December due to the cold
January weather. Output in the energy sector rose four pct and
mining output 10 pct.
    Manufacturing industry's production fell 1-1/2 pct in
January/February compared with November/December.
    Within this sector, the output of both basic products and
of food, tobacco and alcohol fell 1-1/2 pct. Production of
capital goods fell 2-1/2 pct while output of consumer goods was
unchanged.


.I 1544
.C
acq
.W
TOSHIBA REGRETS LINK WITH U.K. ACCESS ISSUE.
    TOKYO, April 2 - Toshiba Corp <TSBA.T> said it regrets its
plan to enter the U.K. Business facsimile and telephone market
may be caught up in a diplomatic row over the position of Cable
and Wireless Plc's <CAWL.L> in the Japanese market.
    Britain is considering how to retaliate against Japan's
attempt to prevent Cable and Wireless from taking a major
position in a Japanese international telecommunications
venture.
    "As a matter of timing it is regrettable that this has been
linked with the question of market access in Japan," a Toshiba
spokesman told Reuters.
    <Toshiba Information Systems (U.K.) Ltd>, a Toshiba
subsidiary, said yesterday it planned to enter the U.K. Market
under the Toshiba own brand name and had applied for government
approval to do so.
    Toshiba has supplied equipment to U.K. Manufacturers for
sale under their brand names since last year.
    The Toshiba spokesman said the sale of such equipment was
not comparable to Cable and Wireless' efforts to take a stake
in the new Japanese telecommunications firm.
    "They are matters of a different category," he said.


.I 1545
.C
interest
.W
WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE.
    WELLINGTON, April 2 - Westpac Banking Corp in New Zealand
said it will increase its indicator lending rate by 1.5
percentage points to 22.5 pct from April 7.
    Westpac said in a statement the increase reflects high
costs of funding.
    The bank said nervousness in the wholesale deposit market
is creating uncertainty about the immediate outlook for
interest rates. Liquidity is expected to remain tight over the
next month and this will put upward pressure on interest rates.
Base lending indicator rates of the other three trading banks
range between 21.0 pct and 21.5 pct.


.I 1546
.C
dlr;money-fx;interest;yen;
.W
BANK OF JAPAN INTERVENES JUST AFTER TOKYO OPENING.
    TOKYO, April 2 - The Bank of Japan intervened just after
the Tokyo market opened, buying dollars at around 147.65 yen,
dealers said.
    They were unsure of the amount of the central bank's
purchasing, but it seemed to prevent the dollar from weakening
against the yen amid bearish sentiment for the U.S. Currency,
they said.
    The dollar opened at 147.65 yen against 147.20/30 in New
York and 146.90 at the close here yesterday.


.I 1547
.C
money-fx;interest;
.W
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED.
    FRANKFURT, March 2 - The Bundesbank left credit policies
unchanged after today's regular meeting of its council, a
spokesman said in answer to enquiries.
    The West German discount rate remains at 3.0 pct, and the
Lombard emergency financing rate at 5.0 pct.


.I 1548
.C
trade
.W
JAPAN WARNS OF ANTI-U.S. SENTIMENT IN TRADE ROW.
    TOKYO, April 2 - Japan is sending a three-man team to
Washington to try to halt threatened trade sanctions that
officials warn could spark a wave of anti-U.S. Sentiment here.
    The team will lay the groundwork for high-level emergency
talks next week aimed at defusing an increasingly bitter row
over trade in computer microchips, officials said.
    "The sanctions are against the free trade system," Ministry
of International Trade and Industry (MITI) director general
Noboru Hatakeyama told reporters, adding: "If these measures are
taken, the atmosphere in Japan against the United States would
become not so good as before."
    Other officials were more blunt. "The U.S. Action will have
a significant impact on the growing anti-U.S. Feeling (here),"
another MITI official said.
    A senior Foreign Ministry official, who declined to be
identified, told Reuters the U.S. Threats have undercut those
in the government who argue for conciliation.
    "There is a very strong argument in Japan that since the
United States is imposing tariffs unilaterally, why should we
bother doing anything," he said. "Anything we do, we will be
bashed."
    The senior official sounded pessimistic about the
likelihood of Prime Minister Yasuhiro Nakasone defusing U.S.
Anger over Japanese trade practices when he visits Washington
on April 29.
    "I don't think trade friction will be solved all of a sudden
(by the visit)," he said.
    Nakasone is widely expected to present a package of
measures to President Reagan to help contain U.S. Frustration
over Japan's large trade surplus.
    But the senior official played down those expectations.


.I 1549
.C
trade
.W
JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED.
    TOKYO, April 2 - Japan is doing all it can to solve its
trade problems with the United States but the two nations will
remain at odds as long as the trade account is lopsided in
Japan's favour, a senior official said.
    "So long as there is an external imbalance there will be
trade friction and ...Harsh words between the two governments,"
the Foreign Ministry official told reporters.
    Last year, Japan racked up a 51.5 billion dlr surplus with
the United States and economists said they do not see it
falling significantly any time soon.
    Washington announced plans last week to slap up to 300 mln
dlrs in tariffs on Japanese electronic goods, raising the
spectre of a trade war between the two countries.
    "We take the current situation very seriously," said the
official, who declined to be identified. "The basic stance of
the Japanese government is to tackle the issues with all
available resources."
    The United States has accused Japan of reneging on an
agreement that called on it to stop selling cut-price computer
microchips in world markets and to try to import more American
semiconductors. Tokyo has denied the charges.
    The Foreign Ministry official refused to rule out Japanese
retaliation if America went ahead with its threatened tariffs
in the middle of this month. But he said that any response
would be in accordance with international law and Japan's
international obligations.
    He added that both Japan and the United States must take
account of the impact of their dispute on their own and the
world economy.


.I 1556
.C
reserves
.W
BANK OF FRANCE FOREIGN ASSETS RISE LATEST WEEK.
    PARIS, April 2 - Weekly figures published by the Bank of
France showed its gross foreign assets rose by about two
billion francs last week, when it was reported by banks to have
intervened on the foreign exchange markets to support the
dollar against the yen.
    The figures showed its gold, foreign currency and other
external assets rose to 415.1 billion francs from 413 billion,
mainly reflecting a rise to 116.7 billion from 114.7 billion in
foreign exchange holdings.


.I 1559
.C
interest
.W
BANKAMERICA <BACP> RAISES PRIME RATE TO 7.75 PCT.
    SAN FRANCISCO, April 2 - BankAmerica Corp, following moves
by other major banks, said it has raised its prime rate to 7.75
pct from 7.50 pct, effective today.


.I 1560
.C
silver;lead;copper;alum;zinc;nickel;
.W
LME DETAILS MARCH 1987 TURNOVER.
    LONDON, April 2 - The London Metal Exchange, LME, issued
turnovers for March 1987, with figures for corresponding period
1986 in brackets.
    All in tonnes except Silver which in troy ounces.
    Copper higher grade nil (2,526,425), Standard cathodes nil
(6,325), Grade A 2,429,200 (nil), Standard Copper 17,050 (nil),
Lead 443,850 (538,750), Zinc High grade 598,550 (304,825),
Silver large 10,350,000 (17,400,000), Small nil (2,000),
Aluminium 1,693,375 (1,301,850), Nickel 62,004 (65,040).
    Cumulative figures for January-March were as follows -
Copper higher grade nil (7,703,625), Standard cathodes nil
(24,700), Grade A 6,455,525 (nil), Standard Copper 62,075
(nil), Lead 1,567,000 (1,979,750), Zinc High grade 1,746,675
(1,356,400), Silver large 41,770,000 (65,620,000), Small nil
(8,000), Aluminium 4,984,650 (4,974,950), Nickel 199,944
(179,328).


.I 1561
.C
acq
.W
NEWS CORP <NWS> STARTS HARPER/ROW <HPR> BID.
    NEW YORK, April 2 - News Corp Ltd of Australia said it has
started its previously announced tender offer for all shares of
Harper and Row Publishers Inc at 65 dlrs per share.
    In a newspaper advertisement, the company said the offer is
conditioned on received of at least 51 pct of Harper and Row's
shares.  The offering and withdrawal rights expire April 29
unless extended.
    A merger at the tender price is to follow the offer, which
has been approved by the Harper and Row board.  Harper and Row
has granted NEw Corp an option to buy up to 800,000 new shares
or a 15.4 pct interest at 65 dlrs each.
    News Corp said if the merger agreement were terminated
under certain circumstances, News would be entitled to a 16 mln
dlr cash payment.
    Last month, Theodore Cross offered to acquire Harper and
Row for 34 dlrs per share but was soon outbid by Harcourt Brace
Jovanovich Inc, which offered 50 dlrs per share.  Late in the
month, Harper and Row said its board had received expressions
of interest from a number of domestic and foreign companies.


.I 1563
.C
earn
.W
INTERNATIONAL TECHNOLOGY <ITX> SEES 4TH QTR LOSS.
    TORRANCE, Calif., April 2 - International Technology corp
said it expects to report a loss for the fourth quarter ended
March 31 of about 20 cts per share, compared with a
year-earlier profit of 11 cts.
    The company blamed the expected loss on regulatory and
permitting issues that limited the full utilization of
hazardous waste treatment cites in Califoirnia, continued
startup delays for major remediation projects, the writeoff of
an investment in a subsidiary and a settlem,ent with the
California Attorney General's Office and Department of Health
Services.
    The company said the settlement relates to regulatory
violations alleged by the U.S. Environmental Protection Agengy
and the California Health Services department at the company's
Vine Hill and Panoche treatment facilities in Northern
California.
    It said under the agreement, it will pay the state
2,100,000 dlrs in civil penalties over a two-year period and
pay 500,000 dlrs over five years to local medical facilities as
part of a community awareness and emergency response program
developed by local communities.  The expenses will be charged
against fourth quarter results, it said.
    The company said it has agreed as well to make compliance
and public safety capital expenditures of about 600,000 dlrs.
    It said it has now received an operating permit for a new
250,000 cubic yard landfill cell at its Imperial County,
Calif., from the Health Services department.
    The company said the Panoche facility remains closed but is
expected to reopen for liquid and sludge receipts in the near
future.  But it said receipts of solid material, which had
accounted for the majority of the revenue at the site, could be
restricted until 1988 pending resolution of capacity issues in
the Panoche site permit.


.I 1564
.C
earn
.W
WESTLB LUXEMBOURG REPORTS LOWER 1986 NET PROFIT.
    DUESSELDORF, April 2 - Westdeutsche Landesbank Girozentrale
<WELG.F> said its wholly-owned Luxembourg subsidiary WestLB
International SA posted a decline in 1986 net profit to 12.6
mln marks from 48.5 mln a year earlier.
    WestLB International will pay a 12.5 mln mark dividend to
WestLB, down from 47.7 mln a year earlier.
    The dividend was lower than in 1985 because the record
profit of the previous year could not be repeated, due to
changed market conditions, it said. Increased funds were also
allocated for provisions. Business in the first three months of
1987 developed positively, it added.
    WestLB International set aside 115.3 mln marks for
international credit risks in 1986, up from 97.4 mln marks in
1985, bringing the total amount of provisions shown in the
balance sheet to 580.3 mln marks.
    Operating profit fell to 122 mln marks in 1986 from 150 mln
in 1985. Balance sheet total fell to 9.7 billion marks from
10.8 billion, reflecting the lower dollar and the fact that
credit business redemptions were not fully offset by new
lending.
    The statement said WestLB International's business with
private customers showed a pleasing expansion last year.
    This development was aided by cooperation between the bank
and the savings banks in the West German state of North
Rhine-Westphalia, where parent bank WestLB is based.
    Deposits by non-banks rose more than 40 pct to a total of
1.1 billion.
    WestLB International said it plans to expand its range of
services for private clients.


.I 1565
.C
copper
.W
40 MINERS TRAPPED BY FIRE IN GASPE COPPER MINE.
    MURDOCHVILLE, Que., April 2 - Some 40 miners were trapped
underground today by a fire in a copper mine in the Gaspe area
of eastern Quebec, officials said.
    There were no reports of any deaths.
    A mine official said that the fire broke out last night and
about 25 of the miners made it to safety.
    He said telephone contact had been established with the
trapped miners but they could not be brought to the surface
until the fire was extinguished.
    The cause of the fire was not known.


.I 1566
.C
coffee
.W
OTHER MILDS COFFEE PRODUCERS TO MEET MAY 4.
    LONDON, April 2 - Coffee producers belonging to the "Other
Milds" group will meet May 4 in Guatemala to discuss the
possibility of restoring export quotas, producer delegates told
reporters after the closing session of the International Coffee
Organization, ICO, executive board meeting.
    The "Other Milds" group, comprising Costa Rica, Dominican
Republic, Ecuador, El Salvador, Guatemala, Honduras, India,
Mexico, Nicaragua, Papua New Guinea and Peru, might consult
with Brazil and Colombia on this meeting, but it was not
certain whether these two countries would attend, they said.
    The ICO board meeting ended without moves to restart
negotiations on quotas, which broke down last month, producer
delegates said.
    Producers are expected to hold other consultations in the
coming months on how to proceed with quota negotiations, but no
date for a full producer meeting has been mentioned, they said.
    The board completed reports on stock verification and the
next regular board session will be in Indonesia June 1-5,
delegates said.


.I 1568
.C
acq
.W
<ALOHA INC> BUYOUT COMPLETED.
    HONOLULU, April 2 - Aloha Inc said its leveraged buyout by
AQ Corp, which acquired 91 pct of Aloha common and 82 pct of
Aloha preferred in a tender offer that concluded December 26,
has been completed for 28.50 dlrs per common or preferred
share.
    AQ is controlled by Aloha chairman Hung Wo Ching, vice
chairman Sheridan C.F. Ing and president A. Maurice Myers.


.I 1570
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 152 MLN STG HELP.
    LONDON, April 2 - The Bank of England said it had given the
money market a further 152 mln stg assistance in the afternoon
session.
    This takes the Bank's total help so far today to 497 mln
stg and compares with its forecast of a shortage in the system
of around 700 mln stg which it earlier revised down from 800
mln.
    The central bank made outright purchases of bank bills
comprising 34 mln stg in band one at 9-7/8 pct, 39 mln stg in
band two at 9-13/16 pct, 51 mln stg in band three at 9-3/4 pct
and 28 mln stg in band four at 9-11/16 pct.


.I 1571
.C
interest
.W
****** BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.
Blah blah blah.

.I 1576
.C
wheat;grain;corn;
.W
FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED.
    PARIS, April 2 - French operators have requested licences
to export 422,000 tonnes of free market maize, 212,000 tonnes
of barley and 20,000 tonnes of feed wheat at today's EC tender,
trade sources said.
    For the maize, rebates requested range between 129.25 and
138.74 European currency units per tonne, for the barley
between 138.94 and 145 Ecus and for feed wheat 141.75 Ecus.


.I 1577
.C
money-fx;interest;
.W
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED.
    PARIS, April 2 - The Bank of France said it left its
intervention rate unchanged at 7-3/4 pct when it injected funds
to the market against first category paper in todays money
market intervention tender.
    Money market dealers had earlier expressed mixed views on a
possible quarter point cut.
    The rate was last adjusted on March 9, when it was reduced
to 7-3/4 pct from the eight pct rate set in January.


.I 1578
.C
wool
.W
MAURITIUS LIFTS DUTY ON TEXTILE-RELATED GOODS.
    PORT LOUIS, April 2 - Mauritius has lifted import duties on
textiles and other goods connected with the textile industry as
part of its economic liberalisation programme, Finance Minister
Vishnu Lutchmeenaraido said.
    Lutchmeenaraido said the move was aimed at boosting the
local textiles industry and making this Indian Ocean island a
shopping paradise for textile goods. He said all types of
textiles, textile machinery and associated goods such as sewing
thread, buttons and collar supports would be placed on the
duty-free list, effective from April 1.
    Official sources said the government was also planning to
abolish import duties on fertiliser and agricultural equipment,
with the liberalisation measures would be extended to other
areas of industry later.
    The textiles industry dominates Mauritius's Export
Processing Zone, and the island has become a major exporter of
woollen knitwear.


.I 1579
.C
crude
.W
NP ENERGY <NPEEQ> SAYS TRUSTEE APPOINTED.
    LOS ANGELES, April 2 - NP Energy Corp said the U.S.
Bankruptcy Court has indicated it will appoint a trustee to
oversee the company's Chapter 11 bankruptcy proceedings.
    It said it hopes the appointment will thwart "hostile"
actions being pursued by two unsecured creditors to whose
claims the company objects.
    NP further said the Nielsen 1-20 well in Duchesne County,
Utah, has tested 300 barrels of oil per day.  NP owns a 61 pct
working interest.


.I 1580
.C
acq
.W
CPC INTERNATIONAL <CPC> SELLS SOUTH AFRICAN UNIT.
    ENGLEWOOD CLIFFS, N.J., April 2 - CPC International Inc
said it has completed the sale of its South African subsidiary
Robertsons Pty Ltd to a consortium of European and South
African investors for an undisclosed amount in excess of book
value due to the increasing difficulty of operating there.
    It said the operation accounted for less than two pct of
worldwide sales of 4.5 billion dlrs in 1986.
    The company said small royalties expected to result from
use of CPC trademarks by the new owners will be utilized for
social programs in south Africa."  It said no significant
impact on earnings is expected from the sale.


.I 1581
.C
earn
.W
<GIANT YELLOWKNIFE MINES LTD> 4TH QTR NET.
    TORONTO, April 2 -
    Shr 23 cts vs 46 cts
    Net 987,000 vs 1,990,000
    Revs 14.6 mln vs 15.0 mln
    Year
    Shr 89 cts vs 1.32 dlrs
    Net 3,846,000 vs 5,690,000
    Revs 58.1 mln vs 56.6 mln
    


.I 1582
.C
earn
.W
NORTH EAST INSURANCE CO <NEIC> 4TH QTR LOSS.
    PORTLAND, Maine, April 2 -
    Shr loss 85 cts vs loss 1.36 dlrs
    Net loss 1,653,386 vs loss 2,646,876
    Year
    Shr loss 12 cts vs loss 1.30 dlrs
    Net loss 236,469 vs loss 2,522,293
    NOTE: Year net includes realized investment gains of
734,609 dlrs vs 645,438 dlrs.


.I 1583
.C
jobs
.W
U.S. FIRST TIME JOBLESS CLAIMS ROSE IN WEEK.
    WASHINGTON, April 2 - New applications for unemployment
insurance benefits rose to a seasonally adjusted 355,000 in the
week ended March 21 from 341,000 in the prior week, the Labor
Department said.
    The number of people actually receiving benefits under
regular state programs totaled 2,480,000 in the week ended
March 14, the latest period for which that figure was
available.
    That was up from 2,454,000 the previous week.
     


.I 1584
.C
earn
.W
******MELLON BANK EXPECTS TO REPORT A FIRST QUARTER LOSS OF 55 MLN TO 65 MLN DLRS.
Blah blah blah.

.I 1585
.C
interest
.W
FIRST CHICAGO <FNB> RAISES PRIME RATE.
    CHICAGO, April 2 - First Chicago Corp said its First
National Bank of Chicago raised its prime rate to 7-3/4 pct
from 7-1/2 pct, effective immediately.


.I 1587
.C
earn
.W
******MELLON BANK SAYS IT WILL CUT DIVIDEND TO 35 CTS A SHR FROM 69 CTS.
Blah blah blah.

.I 1588
.C
acq
.W
AMERICAN BARRICK <ABX> SELLS OHIO ASSETS.
    TORONTO, April 2 - American Barrick Resources Corp said it
sold two coal supply agreements and substantially all assets at
its two coal mines in Ohio to <Peabody Coal Co> of Henderson,
Kentucky, for an undisclosed price.
    The company said proceeds from this sale, together with the
sale of the remaining coal assets, should allow it to fully
recover its investment in the operations.
    It said the transactions will complete its previously
announced plan to sell all non-gold assets.


.I 1590
.C
interest
.W
COMERICA <CMCA> RAISES PRIME RATE.
    DETROIT, April 2 - Comerica Inc said it raised its prime
interest rate to 7-3/4 pct from 7-1/2 pct, effective April 1.


.I 1591
.C
earn
.W
NORTH EAST <NEIC> MAY VIOLATE CAPITAL RULES.
    PORTLAND, Maine, April 2 - North East Insurance Co said due
to the magnitude of its losses in 1986 and 1985, it may be
found in violation of minimum capital and surplus requirements
by officials in Maine and New York and be subject to sanctions
and administrative actions in those and other states.
    The company today reported a 1986 loss of 236,469 dlrs,
after realized investment gains of 734,609 dlrs, compared with
a 1985 loss of 2,522,293 dlrs, after investment gains of
645,438 dlrs.  Its fourth quarter net loss was 1,653,386 dlrs,
compared with 2,646,876 dlrs.
    The company said its fourth quarter and year losses
resulted from additions to loss reserves.


.I 1592
.C
earn
.W
ELECTROMEDICS INC <ELMD> YEAR NET.
    ENGLEWOOD, Colo., April 2 -
    Shr profit nil vs loss three cts
    Net profit 140,022 vs loss 882,869
    Revs 13.3 mln vs 8,870,035
    Avg shrs 45.0 mln vs 35.0 mln
    Backlog 1,683,000 vs 978,000
    NOTE: Current year net includes tax credit of 51,000 dlrs.


.I 1593
.C
earn
.W
ELECTROMEDICS <ELMD> TO TAKE 1ST QTR CHARGE.
    ENGLEWOOD, Colo., April 2 - Electromedics Inc said it
expects to take a 150,000 dlr charge against first quarter
results due to the conversion of debentures.
    The company said, however, it expects "positive" operating
comparisons for the period.  Electromedics lost 6,000 dlrs in
last year's first quarter.


.I 1596
.C
earn
.W
SHELDAHL INC <SHEL> 2ND QTR FEB 28 NET.
    MINNEAPOLIS, April 2 -
    Shr 24 cts vs four cts
    Net 663,000 vs 109,000
    Sales 20.5 mln vs 13.9 mln
    Six mths
    Shr 48 cts vs nine cts
    Net 1,311,000 vs 255,000
    Sales 43.2 mln vs 30.0 mln
    Avg shrs 2,719,205 vs 2,804,048


.I 1597
.C
earn
.W
MELLON <MEL> SEES LARGE FIRST-QUARTER LOSS.
    PITTSBURGH, PA., April 2 - Mellon Bank Corp said it expects
to report a loss for the first quarter in the range of 55 mln
to 65 mln dlrs or 2.13 to 2.15 dlrs a share.
    The company also said it intends to reduce its second
quarter common stock dividend to 35 cts a share from 69 cts.
    Mellon said it will make a provision for loan losses in the
first quarter of 175 mln dlrs, reflecting about 95 mln dlrs in
charge-offs and 80 mln dlrs in additions to the loan-loss
reserve.
    It will also put 310 mln dlrs in Brazilian loans on a cash
basis, resulting in interest reversals of 10 mln dlrs.
    In the first quarter of 1986, Mellon earned 60.4 mln dlrs
or 2.13 dlrs a share.
    Chairman David Barnes said the loan charge-offs and
increased provisions address four areas of concern in the
bank's wholesale lending portfolio - the energy sector,
developing countries, some basic industrial companies and
several commercial real estate businesses.
    Mellon said the loan loss reserve at the end of the first
quarter is estimated to be 575 mln dlrs, or about 2.5 pct of
the loan book, compared with 493.8 mln dlrs or 2.17 pct of
total loans at the end of 1986.
    Mellon said its primary capital ratio at the end of the
first quarter will be in line with the end-1986 figure of 7.23
pct, well in excess of regulatory guidelines.
    Non-performing loans at quarter-end are estimated at 1.45
billion dlrs, or 6.5 pct of the loan portfolio, compared with
928 mln dlrs or 3.94 pct at the end of 1986.
    Barnes noted that Mellon has a bigger involvement in
energy-based lending than many other banks. Because of the lack
of a substantial recovery in energy prices this year,
especially in natural gas prices, it was felt prudent to
increase reserves and take losses on loans in this sector.
    "This action relates both to loans to companies directly
involved in energy, as well as loans to real estate developers,
home builders and financial institutions in the Southwestern
United States," Barnes said.
    As for LDC loans, he said Mellon had removed about 80 mln
dlrs in fully current Argentine loans from cash basis but had
charged off about 20 mln dlrs in private-sector Mexican debt.
    He said Mellon, which was ordered in December to quit
Brazil because of its refusal to renew some short-term credit
lines, expects to participate in efforts to helpt Brazil and
other sovereign borrowers to reschedule their debts.
    Loans to basic industries were not major contributors to
the increase in non-performing assets or to first-quarter
charge offs, but Mellon said it remains concerned about the
absence of a strong recovery in steel and related industries.
    The increase in reserves, the dividend cut and continued
management cost-cutting are aimed at ensuring that Mellon has
the financial strength to deal with current uncertainties,
Barnes said.
    "We cannot predict when the uncertainties that presently
trouble us will end, but we are confident we are managing them
aggressively," he added.


.I 1598
.C
dlr;money-fx;dmk;
.W
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES.
    ANKARA, April 2 - Turkey's Central Bank set a lira/dollar
rate for April 3 of 782.50/786.41 to the dollar, down from
780.00/783.90. It set a lira/D-mark rate of 428.30/430.44 to
the mark, up from 429.15/431.30.


.I 1599
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 40 MLN STG LATE HELP.
    LONDON, April 2 - The Bank of England said it had provided
the money market with around 40 mln stg late assistance. This
takes the Bank's total help today to some 537 mln stg and
compares with its estimate of a 700 mln stg shortage.


.I 1600
.C
earn
.W
KLOECKNER SEES FURTHER GROWTH IN ENGINEERING.
    HANOVER, West Germany, April 2 - Kloeckner-Werke AG
<KLKG.F> should have turnover this year around 1985/86's 2.4
billion marks though more growth is likely in engineering in
coming years, management board chairman Herbert Gienow said.
    He told a news conference at the trade fair here that by
the mid-1990s turnover should reach between six and seven
billion marks, mainly through acquisitions totalling "several
hundred million marks."
    Kloeckner reported in March higher profits in its
engineering sector which enabled it to raise profits by nearly
a third in the 1985/86 year to 45.2 mln marks from 33.8 mln.


.I 1601
.C
dmk;austdlr;
.W
CITIBANK SELLS MARK/AUSTRALIAN DLR WARRANTS.
    LONDON, April 2 - Citicorp said that on behalf of its
Citibank N.A. Subsidiary, it is issuing 100,000 naked currency
warrants priced at 67-1/2 marks each to purchase Australian
dlrs for marks at a rate of 1.1825 marks per Australian dlr.
    The current rate is 1.2850 marks per Australian dlr. Each
warrant is for a nominal amount of 1,000 marks and the minimum
purchase will be for 100 warrants.
    The warrants expire on January 8, 1988. Payment is due on
April 8 and the warrants will be listed on the Luxembourg Stock
Exchange.


.I 1605
.C
acq
.W
FIRST FEDERAL FORT MYERS <FFMY> TO MAKE PURCHASE.
    FORT MYERS, Fla., April 2 - First Federal Savings and Loan
Association of Fort Myers said its board has executed a letter
of intent to acquire First Presidential Savings and Loan
Association of Sarasota, Fla., for 8,500,000 dlrs in cash.
    The company said a definitive agreement is expected to be
executed by May 15 and the transaction is expected to be
completed by year-end.
    The purchase price is subject to an increase on a dollar
for dollar basis to the extent that the net worth of First
Presidentail exceeds 4,100,000 dlrs at the time of closing, the
company said.

.I 1606
.C
acq
.W
******ELI LILLY AND CO PLANS TO SELL ITS ELIZABETH ARDEN SUBSIDIARY.
Blah blah blah.

.I 1607
.C
earn
.W
SAN DIEGO GAS <SDO> SEES DECISION HURTING NET.
    SAN DIEGO, April 2 - San Diego Gas and Electric Co said a
California Public Utilities Commission decision to reconsider
allowing only 20 mln dlrs of the 69 mln dlrs in San Onofre
nuclear station costs it disallowed makes it likely that
earnings in 1987 will be reduced at least 36 cts per share.
    The company said if the decision to disallow the other 20
mln dlrs is not changed, earnings would be penalized by another
19 cts.


.I 1608
.C
acq
.W
ELI LILLY <LLY> TO SELL ELIZABETH ARDEN UNIT.
    INDIANAPOLIS, April 2 - Eli Lilly and Co said its board
decided to sell Elizabeth Arden Inc, a wholly owned subsidiary
that manufactures and markets cosmetics and fine fragrance
products.
    It said the business, which had sales of 67 mln dlrs when
it was acquired in 1971, had sales last year of 398 mln dlrs,
up 12 pct from 1985. It had operating profits of about 33 mln
dlrs in 1986.
    Lilly said it retained Morgan Stanley and Co to help
evaluate offers.
    Lilly said it expects to use the after-tax proceeds from
the sale of its cosmetics business for general corporate
purposes, including the repurchase from time to time of its
common stock or warrants on the open market.
    In a statement, Lilly Chairman Richard Wood said "This
strategic decision was reached on the basis of our belief that
in the future the corporation's resources, including its
research activities, should be focused on its other business
which have a high technology, life sciences orientation."


.I 1609
.C
iron-steel;crude;
.W
MADRID METRO HALTED AS SPANISH STRIKES SPREAD.
    MADRID, April 2 - An estimated 1.2 mln metro users in
Madrid were stranded today as striking railway workers halted
the underground transport system, industry sources said. The
strikers joined coal miners, steel and oil refinery workers in
Spain's latest wave of stoppages over wage demands.
    Some 10,000 pitmen in the northern province of Leon entered
the second day of an indefinite stoppage to demand wage rises
and a five-day working week, the sources said.
    Oil refinery workers picketed the state-owned Empresa
Nacional de Petroleo SA (EMP) to prevent fuel lorries leaving
the company's largest plant in Puertollano, central Spain.
    Paramilitary police were guarding steel mills at Reinosa,
in northern Spain, from the daily protests against planned job
cuts. A local government official said the police force would
remain in place until tempers had cooled down.
    More than 60 people were injured in pitched battles between
police and steel foundry workers in Reinosa last month.


.I 1610
.C
jobs
.W
BELGIAN UNEMPLOYMENT FALLS IN MARCH.
    BRUSSELS, April 2 - Belgian unemployment, based on the
number of jobless drawing unemployment benefit, fell to 11.8
pct of the working population at the end of March from 12.1 pct
at end of February, the National Statistics Office said.
    The rate compares with 12.0 pct at the end of March, 1986.
    The total number of jobless stood at 495,208, compared with
508,392 in February and 504,652 in March last year.


.I 1614
.C
acq
.W
KEY CENTURION <KEYC> COMPLETES ACQUISITIONS.
    CHARLESTON, W.Va., April 2 - Key Centurion Bancshares Inc
said it has completed the previously-announced acquisitions of
Union Bancorp of West Virginia Inc and Wayne Bancorp Inc.


.I 1616
.C
acq
.W
CB AND T <CBTB> COMPLETES ACQUISITION.
    COLUMBUS, Ga., April 2 - CB and T Bancshares Inc said it
has completed the acquisition of First Community Bancshares Inc
Of Tifton, Ga., which as assets of 62 mln dlrs.


.I 1619
.C
wheat;grain;
.W
COLOMBIA BUYS 25,000 TONNES FRENCH WHEAT - TRADE.
    PARIS, April 2 - Colombia recently bought 25,000 tonnes of
French soft wheat at 108 dlrs per tonne, c and f, for end-April
shipment, trade sources said.
    This follows the country's tender for 25,000 tonnes of
optional origin wheat for shipment April 20-30, they said.
    France had not sold wheat to Colombia for several years.


.I 1621
.C
earn
.W
******GENERAL PUBLIC UTILITIES RESUMES DIVIDENDS ON COMMON STOCK, PAYS 15 CTS.
Blah blah blah.

.I 1622
.C
acq
.W
ZIMBABWE GOVERNMENT BUYS INTO ASTRA.
    HARARE, April 2 - The Zimbabwe government has bought 85 pct
of the equity in <Astra Corporation> for 25.5 mln dlrs from
Netherlands-based <Bommenede Houdstermaatschappij (Nederland
BV)>, Astra announced.
    Astra owns five companies with interests in engineering,
paint manufacture and the distribution of farm machinery and
equipment, motor vehicles and earthmoving equipment.
    The company is now locally controlled with 80 pct of its
equity owned by the government, 14 pct by the Dutch firm. A six
pct stake was donated to the Astra Corporation Workers' Trust
by the government and the Dutch company.


.I 1625
.C
earn
.W
******UTILICORP RECOMMENDS THREE-FOR-TWO SPLIT, DIVIDEND INCREASE AND ADDITIONAL CLASS OF STOCK.
Blah blah blah.

.I 1626
.C
earn
.W
GPU <GPU> DECLARES FIRST DIVIDEND SINCE 1979.
    PARSIPANNY, N.J., April 2 - General Public Utilities Corp
said its board declared a dividend of 15 cts per share on
common stock, its first dividend since it omitted payment in
February 1980 as a result of the Three Mile Island nuclear
accident in 1979.
    The company said it was able to declare the dividend due to
progress in the cleanup of Three Mile Island Unit Two.
    A company spokesman said GPU expects to continue declaring
dividends on a quarterly basis, with the rate depending on the
progress of the cleanup and on other company operations.
    GPU said the dividend is of "modest size," representing
less than a third of the amount paid as a dividend by the
average electric utility.
    "As the operating companies need to return to the capital
markets for debt and preferred stock, this should tend to
produce lower cost and better terms," the company said.
    The dividend is payable May 29 to holders of record April
24.


.I 1627
.C
earn
.W
BRITTON LEE <BLII> SEES FIRST QUARTER LOSS.
    LOS GATOS, Calif., April 2 - Britton Lee Inc said it
expects to report a loss on lower sales than it had anticipated
for the first quarter.
    The company earned 119,000 dlrs before a 70,000 dlr tax
credit on sales of 7,227,000 dlrs in the year-ago period.

.I 1630
.C
money-fx;interest;
.W
NEW DUTCH SPECIAL ADVANCES UNCHANGED AT 5.3 PCT.
    AMSTERDAM, April 2 - The Dutch central bank announced new
12-day special advances at an unchanged rate of 5.3 pct to
cover money market tightness for the period April 3 to 15.
     The amount will be set at tender on April 3 between 0700
and 0730 hours GMT.
    The new facility replaces the current 4.2 billion guilders
of nine-day advances which expire tomorrow.
    Money market dealers said the rate for the new advances was
in line with expectations. They added they expect the Bank to
allocate between 4.0 and 4.5 billion guilders.


.I 1631
.C
jobs
.W
EC TO BOOST SPENDING ON JOB CREATION THIS YEAR.
    BRUSSELS, April 2 - The European Community (EC) is to boost
spending to help the jobless this year.
    The EC's executive commission said in a statement spending
on its so-called social fund would rise to 3.1 billion European
Currency Units from 2.5 billion ECUs in 1986. The fund is
designed to help boost job creation and improve worker
mobility, and supplement national schemes in the EC's 12 member
states.
    Another 60 mln ECUs could be added if EC ministers switch
unused project credits to other programs, the Commission said.
    Italy is the largest net beneficiary in 1987, getting 635
mln ECUs, with Britain in second place with 580 mln.


.I 1633
.C
acq
.W
JACOBS TAKES MAJORITY STAKE IN COTE D'OR.
    ZURICH, April 2 - Jacobs Suchard AG said it acquired a
"comfortable majority" interest in its takeover bid for Cote d'Or
SA, Belgium's leading producer of chocolate.
    In a statement, Jacobs said it had acquired all the shares
tendered by the time its offer expired on March 30. The offer,
for 100 pct of Cote d'Or at 8,050 Belgian francs per ordinary
share, was agreed with the Belgian firm's board.
    A Jacobs spokesman declined to specify the size of the
majority stake and said Jacobs had not decided what it would do
about acquiring the outstanding shares.


.I 1634
.C
trade
.W
******YEUTTER SAYS U.S. SHOULD STRESS TRADE NEGOTIATIONS AS LONG-TERM U.S. TRADE POLICY.
Blah blah blah.

.I 1635
.C
earn
.W
HOLIDAY <HIA> RECAPITALIZATION APPROVED.
    MEMPHIS, Tenn., April 2 - Holiday Corp said the New Jersey
Casino Control Commission has approved its recapitalization
plan, providing the final regulatory approval needed.
    The company said it expects to announce next week the
record date for the special 65 dlr per share dividend
shareholders will receive under the plan and to pay the
dividend during the month of April, with the exact timing
depending on the closing of financing arrangements.
    Holiday operates Harrah's Marina Hotel and Casino in
Atlantic City, N.J.


.I 1638
.C
earn
.W
COMP-U-CARD INTERNATIONAL INC <CUCD> 4TH QTR NET.
    STAMFORD, Conn., April 2 - January 31 end
    Oper shr profit 16 cts vs loss six cts
    Oper net profit 2,879,000 vs loss 958,000
    Revs 41.9 mln vs 24.1 mln
    Avg shrs 18.2 mln vs 15.8 mln
    Year
    Oper shr profit 49 cts vs profit 18 cts
    Oper net profit 8,660,000 vs profit 2,832,000
    Revs 141.8 mln vs 87.5 mln
    Avg shrs 17.8 mln vs 15.8 mln
    NOTE: Net excludes extraordinary tax charge 156,000 dlrs vs
credit 2,257,000 dlrs in quarter and credits 1,041,000 dlrs vs
3,589,000 dlrs in year.


.I 1639
.C
trade
.W
YEUTTER STRESSES IMPORTANCE OF TRADE TALKS.
    WASHINGTON, April 2 - U.S. Trade Representative Clayton
Yeutter stressed the importance of trade negotiations to open
foreign markets rather than trade restrictions in a statement
to the Senate Finance Committee.
    "In the long term we cannot repeatedly bludgeon other
nations into opening their markets with threats of U.S.
restrictions. Rather, we must be able to negotiate credibly for
global liberalization," Yeutter said.
    Yeutter did not mention the recent U.S. trade sanctions
against Japanese semiconductors in his testimony on the pending
trade bill.
    Yeutter said the trade bill should increase U.S.
competitiveness, aid U.S. trade negotiating leverage, and avoid
provoking foreign retaliation.
    He urged Congress to reject provisions that would mandate
U.S. retaliation against foreign unfair trade practices.
    Yeutter emphasized the importance of the new multilateral
trade negotiating round and called on Congress to quickly
approve an extension of U.S. negotiating authority.
    "We want to open foreign markets and establish and enforce
rules of international competition, not foster dependence on
protection and subsidies," he said.


.I 1640
.C
trade
.W
EC MUST EXPLAIN FARM POLICY TO U.S., FRANCE SAYS.
    PARIS, April 2 - The U.S. and the European Community could
enter into a new trade dispute unless urgent action is taken to
explain EC farm policy to the U.S. Congress, French official
sources said.
    They said Prime Minister Jacques Chirac planned to urge EC
Commission president Jacques Delors to send a team of experts
to Washington as soon as possible.
    Chirac returned to Paris this morning after three days of
talks in New York and Washington in which trade and
protectionism featured prominently.
    At the centre of the new trade tension is an EC Commission
proposal to tax vegetable oils, the sources said.


.I 1645
.C
earn
.W
CENTRONICS CORP <CEN> YEAR LOSS.
    NASHUA, N.H., April 2 -
    Oper shr loss 11 cts vs loss 36 cts
    Oper net loss 2,383,000 vs loss 4,285,000
    Total income 2,194,000 vs nil
    NOTE: Resultes restated for discontinued operations and
exclude discontinued operations loss 5,755,000 dlrs vs gain
4,933,000 dlrs.


.I 1646
.C
earn
.W
SANDSPORT DATA SERVICES INC <SAND> 3RD QTR NET.
    PORT WASHINGTON, N.Y., April 2 - Feb 28 end
    Shr nil vs nil
    Net 132,804 vs 53,510
    Revs 2,001,107 vs 1,467,742
    Avg shrs 73.9 mln vs 56.7 mln
    Nine mths
    Shr nil vs nil
    Net 302,316 vs 171,034
    Revs 5,230,014 vs 4,112,562
    Avg shrs 74.4 mln vs 56.7 mln


.I 1647
.C
interest
.W
NORTH CAROLINA FEDERAL <NCFS> RAISES PRIME RATE.
    CHARLOTTE, N.C., April 2 - North Carolina Federal Savings
and Loan Association said it has raised its prime rate to 7-3/4
pct from 7-1/2 pct, effective yesterday, following moves by
major banks.


.I 1648
.C
earn
.W
HEALTH IMAGES INC <HIMG> 4TH QTR LOSS.
    ATLANTA, April 2 -
    Shr loss one ct vs loss seven cts
    Net profit 108,419 vs loss 241,192
    Revs 2,044,882 vs 317,266
    Year
    Shr loss 18 cts vs loss 23 cts
    Net loss 430,027 vs loss 432,982
    Revs 5,088,065 vs 416,777
    NOTE: Share after preferred dividends.


.I 1649
.C
earn
.W
SHELL CANADA SEES BETTER PROFIT, LOWER SPENDING.
    CALGARY, Alberta, April 2 - <Shell Canada Ltd>, 72 pct
owned by Royal Dutch/Shell Group, anticipates an improved level
of earnings in 1987, assuming a continuation of prices and
margins that existed at the end of 1986 and early 1987, the
company said in the annual report.
    Shell previously reported 1986 operating profit fell to 130
mln dlrs, excluding a 24 mln dlr unusual gain, from 146 mln
dlrs in the prior year.
    The company also said 1987 capital and exploration spending
of 420 mln dlrs will be 160 mln dlrs lower than last year, due
to the uncertain short-term outlook.

.I 1650
.C
earn
.W
UTILICORP <UCU> SEEKS TO SPLIT STOCK.
    KANSAS CITY, Mo., April 2 - Utilicorp United Inc said its
management is recommending to the board of directors a
three-for-two stock split and an increase in the quarterly cash
dividend rate, currently at 37 cts per common share.
    The company said it is also submitting to shareholders at
its May 21 annual meeting a proposal authorizing an additional
class of common stock.
    Utilicorp said the board of directors will vote on the
split at its next regularly scheduled board meeting on May 6.
    It added that its semi-annual four pct stock dividend will
not change.
    Utilicorp said the proposal to create a new class of stock,
if approved, will authorize 20 mln shares of Class A common
stock with a par value of one dlr.
    The stock could be issued in various series with terms,
rights and preferences designated by the board in each
instance, Utilicorp said.
    The company said the new stock is intended to enhance
Utilicorp's ability to carry out future financings,
investments, acquisitions or for other corporate purposes.


.I 1652
.C
gnp;money-supply;
.W
BANK OF SPAIN GOVERNOR SAYS MONEY GROWTH TOO FAST.
    MADRID, April 2 - Bank of Spain governor Mariano Rubio said
the central bank was worried that money supply was growing too
fast, reflecting excessive internal demand in the Spanish
economy, but added that he was confident recent measures would
succeed in restricting money growth.
    In testimony to the economic commission of Congress, Rubio
said the main measure of money supply, the broad-based Liquid
Assets in Public Hands, grew at an estimated annualised rate of
17 pct in March, the same as in February.
    The bank's target range for growth in this measure in 1987
is 6.5 to 9.5 pct, compared with 11.4 pct last year.
    Rubio said he was aiming for the lower end of the range.
    He added that real GDP growth of three pct in 1986 was due
to a six pct increase in real internal demand and a three pct
real drop in the contribution of the external sector.
    The aim for 1987 was for the same real growth in GDP but a
drop in the internal contribution to 4.5 pct with the negative
component of the external sector trimmed to 1.5 pct, he said.


.I 1655
.C
earn
.W
AMERICAN REALTY <ARB> SETS RECORD DATE FOR OFFER.
    DALLAS, April 2 - American Realty Trust said its board has
set April 3 as the record date for its previously announced
rights offering, and the rights will be issued on April 6 and
expire May 22.
    Shareholders will be able to subscribe for 1.25 shares for
each share held, at a price of 3.75 dlrs per share.


.I 1656
.C
earn
.W
CARTER-WALLACE INC <CAR> SETS REGULAR PAYOUT.
    NEW YORK, April 2 -
    Qtly div 20 cts vs 20 cts prior
    Pay June 1
    Record April 16


.I 1659
.C
grain;corn;
.W
EC SETS EXPORT LICENCES ON 20,000 TONNES MAIZE.
    PARIS, April 2 - The European Community Commission awarded
export licences for 20,000 tonnes free market French maize at a
maximum export rebate of 129.40 European currency units (Ecus)
per tonne, trade sources said here.
    All requests for export licences for free market feed wheat
and barley were rejected, they said.


.I 1661
.C
palm-oil;veg-oil;
.W
PAKISTAN TO TENDER FOR RBD PALM OLEIN TOMORROW.
    LONDON, April 2 - Pakistan will tender tomorrow for 12,000
tonnes of refined bleached deodorised palm olein tomorrow,
split in two equal cargo lots for first and second half April
shipments, traders said.
    The tender will be financed with Islamic Development Bank
credit.


.I 1663
.C
grain;corn;
.W
USDA DENIES CHANGES IN TEXAS GULF DIFFERENTIALS.
    WASHINGTON, April 2 - No changes have been made or are
being planned in the Agriculture Department's calculation of
price differentials between interior grain locations and the
Texas Gulf, a senior USDA official said.
    Ralph Klopfenstein, USDA deputy administrator for commodity
operations, told Reuters, "We do not anticipate any changes to
be made" in the Texas Gulf differentials used to calculate
posted county prices for corn.
    "We do not relate the Texas Gulf structure with the
Louisiana Gulf structure at all. It's a totally different
situation," he said.
    Rumors had circulated through the market this morning that
USDA had widened Texas Gulf differentials in a similar manner
to last weekend's adjustments with the Louisiana Gulf.


.I 1664
.C
money-fx;stg;
.W
****** Lawson says his sterling target comments were misunderstood, and insignificant.
Blah blah blah.

.I 1668
.C
interest
.W
J.P. MORGAN <JPM> INCREASES PRIME RATE.
    NEW YORK, April 2 - J.P. Morgan and Co Inc said it is
raising its prime lending rate to 7-3/4 pct from 7-1/2 pct,
effective today.
    Most major U.S. banks are now posting a 7-3/4 pct rate.
Citibank was the first to announce an increase on Tuesday.


.I 1669
.C
money-fx;stg;
.W
******LAWSON SAYS HIS STERLING-TARGET COMMENTS WERE MISUNDERSTOOD AND INSIGNIFICANT.
Blah blah blah.

.I 1697
.C
nat-gas
.W
COOPER BASIN NATURAL GAS RESERVES UPGRADED.
    ADELAIDE, April 3 - Remaining recoverable gas reserves in
the areas held by the Santos Ltd <STOS.S>-led Cooper Basin
joint ventures have been upgraded to 2,721.7 billion cubic feet
(bcf) from the 2,466 estimated last May, Santos said.
    The upgrading followed a re-review by consultant <Coles
Nikiforuk Pennell Associates> in light of the large number of
gas finds since May 1986, Santos said in a statement.
    This means that total contractual commitments of 2,455.5
bcf to <The Australian Gas Light Co> of New South Wales and the
Pipeline Authority of South Australia can be met with spare gas
available for sale in South Australia, it said.


.I 1700
.C
interest
.W
ANZ BANK TO CUT AUSTRALIAN PRIME RATE TO 18 PCT.
    MELBOURNE, April 3 - Australia and New Zealand Banking
Group Ltd <ANZA.S> said it will lower its Australian prime
lending rate to 18 pct from 18.25, effective April 6.
    The cut is the second announced by the bank in the last
week, following a cut from 18.5 pct effective last Monday.
    The ANZ's new rate will be the lowest prime set by the four
major trading banks and matches the rate set by one of the
smaller foreign banks in January and left unchanged during the
rise in primes over the last three months.
    Other primes range from 18.25 to 18.5 pct, including those
of the other three majors.


.I 1701
.C
interest
.W
ANZ BANK IN N.Z. RAISES INDICATOR LENDING RATE.
    WELLINGTON, April 3 - The Australia and New Zealand Banking
Group Ltd in New Zealand said it will raise its indicator
lending rate to 23 pct from 21.5 pct on April 7.
    A bank statement said the continuing rise in the cost of
funds had to be passed on to the lending customers.
    ANZ managing director Brian Weeks said: "Recent developments
in the money markets are of deep concern to all participants
... Market participants are understandably nervous and cautious
about future developments.
    These include flows to and from the government relating to
the privatisation of seven government departments on April 1.
    "We welcome the flexibility evident in the Reserve Bank's
move to raise the system cash target yesterday, but feel that
to reduce the present nervousness the cash target and primary
liquidity level need to be raised further...," he said.
    The Reserve Bank has raised its daily cash target to 45 mln
N.Z. Dlrs from its normal 30 mln dlrs.
    Call rates have traded as high as 65 pct this week because
of business year-end March 31 balance date book squaring.
    Westpac Banking Corp in New Zealand announced yesterday it
would increase its indicator lending rate by 1.5 percentage
points to 22.5 pct on April 7.





.I 1706
.C
livestock;carcass;orange;
.W
JAPAN/U.S. AGRICULTURE TALKS SET FOR APRIL 17, 20.
    TOKYO, April 3 - Agriculture Minister Mutsuki Kato said he
will meet U.S. Agriculture Secretary Richard Lyng here on April
17 and 20 to discuss bilateral farm trade issues. Lyng will
visit Tokyo from April 16 to 27.
    Kato told reporters after a cabinet meeting all topics ofconcern to the U.S. Will be discussed, such as trade in beef
and oranges and import controls on farm products. He said
Shintaro Abe, the ruling Liberal Democratic Party's executive
council chairman, would propose some unspecified measures in
response to demands to ease import controls on U.S. Farm
products. Kato declined to give any details.


.I 1710
.C
money-fx;interest;
.W
NEW DUTCH ADVANCES TOTAL 4.1 BILLION GUILDERS.
    AMSTERDAM, April 3 - The Duth Central bank said it accepted
bids totalling 4.086 billion guilders at tender for the new
twelve-day special advances at an unchanged 5.3 pct.
    Bids up to 30 mln guilders were met in full, amounts above
at 40 pct.
    The new advances, covering the period April 3 to 15,
replace the current 4.2 billion guilder nine-day facility at
5.3 pct, which expires today.
    Money market dealers said the total amount allocated was in
line with expectations and would be sufficient to cover the
money market shortage for the duration of the facility.


.I 1712
.C
jobs
.W
GERMAN MARCH UNADJUSTED JOBLESS FALLS.
    NUREMBERG, April 3 - West German unemployment, unadjusted
for seasonal factors, fell to 2.41 mln in March from 2.49 mln
in February, the Federal Labour Office said.
    The total represents 9.6 pct of the workforce compared with
10.0 pct in February.
    The seasonally adjusted jobless total rose, however, in
March to 2.23 mln from 2.18 mln in February, it added.
    In March last year the unadjusted unemployment total stood
at 2.45 mln and represented 9.8 pct of the workforce.
Seasonally adjusted unemployment was 2.29 mln.
    The Federal Labour Office said the number of workers on
short time rose by 80,629 to 462,802 and the number of
vacancies increased by 15,263 to 180,047.
    Labour Office President Heinrich Franke, announcing the
figures, said the hesitant decline in the unadjusted jobless
total reflected continuing bad weather, slack activity in the
capital goods sector and structural changes in the coal and
steel industry.
    In a separate statement, the Federal Statistics Office said
the rise in the overall number of people in employment had
slowed in February.
    The Office said that, according to estimates for February,
25.7 mln people were in work, a rise of around 240,000 or 0.9
pct compared with the same month in 1986.
    It noted that in January the year-on-year rise was 250,000
or 1.0 pct and the number in work stood at 25.78 mln. The
decline in February compared with January reflected seasonal
factors, it added.


.I 1714
.C
money-fx;interest;
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG.
    LONDON, April 3 - The Bank of England said it has forecast
a shortage of around 700 mln stg in the system today.
    Among the main factors, maturing assistance and take-up of
treasury bills will drain 546 mln stg, bills for repurchase by
the market 76 mln, a rise in note circulation 310 mln and
bankers balances below target 105 mln.
    The outflow will be partly offset by 340 mln stg exchequer
transactions.


.I 1715
.C
palm-oil;veg-oil;
.W
PORLA CRUDE PALM OIL TRADE REPORT FOR APRIL 2.
    KUALA LUMPUR, April 3 - The Palm Oil Registration and
Licensing Authority (PORLA) reports trade in crude palm oil
(cpo) on April 2 as follows in ringgit per tonne delivered
unless stated.
    April 752.50 south and central 751 north average 752.50
down 6.50. May 750 south down 11.
    Refined palm oil traded in bulk US dlrs per tonne fob. RBD
palm oil May 320. RBD palm olein April 336 May 337.50 June 337.
RBD palm stearin May 275.
    The cpo market was lower in light trading, with April
traded between 747.50 and 755 ringgit per tonne.
    The refined palm oil market was slightly easier and April
delivery of RBD palm olein to Singapore traded at 856.50
ringgit per tonne.


.I 1717
.C
money-supply
.W
TAIWAN ISSUES MORE CERTIFICATES OF DEPOSIT.
    TAIPEI, April 3 - The Central Bank issued 5.65 billion dlrs
worth of certificates of deposit (CDs), boosting CD issues so
far this year to 147.58 billion, a bank spokesman told Reuters.
    The new CDs, with maturities of six months, one year and
two years, carry interest rates ranging from 4.07 pct to 5.12
pct, he said.
    The issues are intended to help curb the growth of the M-1b
money supply which has grown as a result of increasing foreign
exchange reserves.
    The reserves hit a record 53 billion U.S. Dlrs last month.


.I 1720
.C
acq
.W
MIM COMPLETES PART OF NORDDEUTSCHE AFFINERIE BUY.
    BRISBANE, April 3 - MIM Holdings Ltd <MIMA.S> said it has
issued 23.33 mln shares to Preussag AG <PRSG.F> to complete the
previously announced purchase of 20 pct of <Norddeutsche
Affinerie AG> from Preussag.
    Terms of the acquisition of 10 pct of Norddeutsche
Affinerie from Degussa AG <DGSG.F> are currently being
resolved, MIM said in a statement.
    Norddeutsche Affinerie will then be owned 40 pct by
Metallgesellschaft AG <METG.F> and 30 pct each by MIM and
Degussa, but MIM said it and Metallgesellschaft are proposing a
further arrangement to give them 35 pct each.


.I 1721
.C
jobs
.W
DANISH UNEMPLOYMENT FALLS TO 7.8 PCT IN FEBRUARY.
    COPENHAGEN, April 3 - Denmark's seasonally adjusted
unemployment rate fell to 7.8 pct of the workforce in February
from 7.9 pct in January, against 7.9 pct in February 1986, the
National Statistics Office said.
    The total number of unemployed in February was 213,200
against 215,700 in January and 216,600 in February, 1986.


.I 1722
.C
meal-feed;soy-meal;
.W
EUROPEAN SOY/FEED MARKET OPENS QUIETLY.
    ROTTERDAM, April 3 - Meals and feed on a cif Rotterdam
basis opened quietly this morning with mixed to slighlty firmer
seller indications compared with yesterday's midday levels,
market sources said.
    Early buying interest was low despite a weaker dollar
against European currencies, they added. No trades were
reported so far.
    US soymeal indicated between unchanged and one dlr a tonne
lower compared with yesterday. Brazilian soymeal pellets were
offered between one dlr lower and one higher, while Argentines
indicated up to two dlrs a tonne higher than yesterday.
    Cornglutenfeed pellets were indicated between unchanged and
one dlr lower, while citruspulp pellets were offered at
slightly firmer levels compared with yesterday midday.
    Seller indications for sunmeal pellets were between one dlr
higher and 0.50 dlrs lower than yesterday, while linseed
expellers were up to two dlrs above yesterday's midday levels.


.I 1723
.C
tea
.W
PAKISTANI DECISION WILL HURT KENYAN TEA EXPORTS.
    NAIROBI, April 3 - Pakistan's decision to suspend tea
import licences will hurt Kenyan tea exports in the short term
while exporters seek new markets, sources close to Nairobi
broking houses and exporters said.
    Broking house officials in the Sri Lankan capital Colombo
yesterday told Reuters Pakistan had suspended the licences in
order to link tea imports to Pakistani exports.
    The latest available figures show that Kenyan exports to
Pakistan, mainly tea, were worth 75 mln dlrs in 1985, while
imports from Pakistan amounted to only 4.8 mln dlrs. Kenya
provides over 50 pct of Pakistan's tea imports.
    The Nairobi sources said the Pakistani decision did not
come as a surprise as Pakistan had been complaining of the
trade imbalance for some time.
    "We are very disappointed that Pakistan took such action ...
(it) will certainly hurt Kenya's tea industry in the short term
as Pakistan is Kenya's second largest market," a source at one
broking house told Reuters.
    One tea broker said Pakistan's move had already affected
Kenya's tea trade and was largely responsible for an average
fall of two shillings a kilo at the export auction in Mombasa
last Monday.
    "The trend is likely to continue until other countries
replace Pakistan, which usually buys all qualities of our tea,"
he added.
    Kenya has for a long time relied on Britain, Pakistan,
Egypt and, to a lesser extent the United States, as major
markets for its tea, the sources added.
    Small-scale exporters who export mainly to Pakistan would
be worst hit by the Pakistani move as it would take them longer
to find new outlets, they said.


.I 1724
.C
trade
.W
SWEDISH PRIME MINISTER'S CHINA VISIT BOOSTS TRADE.
    PEKING, April 3 - An big expansion in bilateral trade is
expected as a result of Swedish Prime Minister Ingvar
Carlsson's visit to China, a official of China's Foreign
Economic Relations and Trade Ministry official said.
    He told the China Daily that petroleum, coal, cotton,
non-ferrous metals and electric engines could help balance the
trade running at over three-to-one in Sweden's favour.
    Total trade reached 290 mln dlrs last year, up 32 pct on
1985, according to Chinese statistics. Swedish sources said
major paper mill projects and an aviation agreement would be
discussed during Carlsson's one week visit.


.I 1726
.C
oilseed;soybean;
.W
TAIWAN BUYS 54,000 TONNES OF U.S. SOYBEANS.
    TAIPEI, April 3 - The joint committee of Taiwan soybean
importers awarded a contract to Cigra Inc of Chicago to supply
a 54,000 tonne cargo of U.S. Soybeans, a committee spokesman
told Reuters.
    The cargo, priced at 213.87 U.S. Dlrs per tonne c and f
Taiwan, is for delivery between April 20 and May 5.


.I 1727
.C
money-supply
.W
SOUTH KOREAN MONEY SUPPLY FALLS IN MARCH.
    SEOUL, April 3 - South Korea's M-2 money supply fell two
pct to 33,463.4 billion won in March from 34,030.3 billion in
February, provisional Bank of Korea figures show.
    It rose a revised 0.5 pct in February and was up 14.7 pct
from a year earlier.
    M-1 money supply fell 8.7 pct to 7,767.8 billion won in
March against a revised rise of 4.3 pct in February. It has
increased 8.3 pct since March last year.
    Bank officials said the March falls were due mainly to
various measures by the bank to absorb excess money.


.I 1728
.C
acq
.W
SKANDIA INTERNATIONAL BUYS STAKE IN NEVI BALTIC.
    STOCKHOLM, April 3 - <Skandia International Holding AB>,
the overseas offshoot of Swedish insurance group Forsakrings AB
Skandia <SKDS.ST> said it was buying a 29.9 pct share in the
London-quoted property and financial services company <Nevi
Baltic Plc>. No financial details were given.
    Nevi Baltic, with a 1986 turnover of 20 mln stg and total
assets of 70 mln stg, is controlled by Norwegian finance
company <Nevi AS> which will retain a 30.1 pct stake in the
British unit, Skandia said in a statement.
    The deal is subject to formal approval from the Swedish
central bank, the statement added.



.I 1729
.C
sugar
.W
LONDON SUGAR OPENS STEADY BUT QUIET.
    LONDON, April 3 - Raw sugar futures had a quiet opening
call of 38 lots with prices holding steady from last night with
gains of 20 to 80 cents a tonne, dealers said.
    Aug was trading at 157.60 dlrs from 157.40 asked yesterday.
    The modest rise continued the recent rally from an oversold
situation but, dealers noted, there was little fresh physicals
news to stimulate activity.
    Whites tenders are scheduled for next Wednesday by Syria
for 36,000 tonnes and Greece for 40,000 tonnes while Pakistan
is due to tender on April 11 for 100,000 tonnes whites, they
said.
    This week has seen whites buying by India and Egypt.


.I 1730
.C
ship
.W
AUSTRALIAN TUG CREWS DELAY FOREIGN CONTAINER SHIPS.
    SYDNEY, April 3 - Tug crews are preventing the movement of
foreign-flag container vessels in and out of the ports of
Sydney, Melbourne and Fremantle, shipping sources said.
    They said maritime unions imposed bans on late Wednesday
for reasons that are obscure but seem to be linked with claims
for a pay rise above the 10 dlrs a week awarded by the
Arbitration Commission nationally to all workers recently.
    Only about 10 vessels are being delayed but the bans will
affect container terminal movements and will disrupt liner
schedules, they said.
    The dispute goes to the Commission on Monday, they said.


.I 1731
.C
wheat;grain;
.W
U.K. WHEAT MARKET EASES ON INTERVENTION RELEASE.
    LONDON, April 3 - U.K. Domestic wheat markets dropped about
one stg per tonne early this morning following overnight news
that the EC is releasing a further 300,000 tonnes of wheat from
British intervention stores for the home market over a three
month period.
    April deliveries of denaturable wheat were offered in East
Anglia at 124 stg and May at 125 stg per tonne, both one stg
down on yesterday's traded rates.
    The market is expecting U.K. Wheat futures to show a
similar loss at today's opening.


.I 1732
.C
cocoa
.W
LONDON COCOA TRADES AT LOWS BY MIDMORNING.
    LONDON, April 3 - Cocoa futures fell to session lows by
midmorning, posting losses from last night of six to two stg a
tonne in 1987 deliveries, dealers said.
    Weekend profittaking by jobbers and general book-squaring
featured the fall which was aided by steady sterling versus the
dollar and lack of offtake in the physicals market.
    Dealers said the market was switch and straddle-bound, in
that any pressure on one particular month was certain to be
reflected in adjacent deliveries.
    The undertone, however, remained cautious as operators
await an eventual start to ICCO buffer stock buying, dealers
said.
    The market was originally forecast to open with average
five stg gains from last night following New York's firmer
close yesterday, dealers said.
    But this was largely counter-balanced by currency factors.
    Near July traded at its session low of 1,327 stg after one
hour versus 1,333 bid last night and an early high of 1,335.
    Volume midmorning was 730 lots including 350 lots crossed
and 108 switches.
    There was no sign of any origin activity.


.I 1736
.C
acq
.W
HORIZ0N AGREES TO 94.8 MLN STG BID FROM BASS.
    LONDON, April 3 - Bass Plc <BASS.L> and <Horizon Travel
Plc> said terms have been agreed for an offer worth around 94.8
mln stg for Horizon by Bass.
    The offer values each Horizon share at some 0.213 of a Bass
ordinary share, or 190p. This is based on a price of 892p, the
Bass share quotation at 1630 gmt on April 2.
    Horizon said its board and financial advisers consider the
offer to be fair and reasonable and the board will unanimously
recommend acceptance to its shareholders.
    Horizon shares jumped 23p to 188 after the announcement
while Bass shares dipped 13p to 879.
    Bass has for some time regarded overseas holidays as an
area for expansion and in pursuit of this objective, acquired a
25.6 pct holding in Horizon in 1985 when it set up the jointly
owned hotel company.
    Both Bass and Horizon said that Bass's resources will
enable Horizon's businesses to expand strongly this year.
    On March 30 Bass said it had agreed to sell its Pontins
U.K. Holiday camps to a newly formed private company, Pontins
Ltd, for some 57.5 mln stg.


.I 1737
.C
ship;grain;
.W
ROTTERDAM'S MAIN GRAIN TERMINAL CLOSED BY STRIKE.
    ROTTERDAM, April 3 - Grain handling at Rotterdam port's
main grain terminal was at a standstill today as members of the
largest Dutch transport union FNV staged a lightning strike for
the third day running.
    Pieter van der Vorm, managing director of Graan Elevator
Mij (GEM), which handles 95 pct of grain passing through the
port, said their main Europoort terminal was out of action
because of a strike by technical staff.
    The actions, in support of union demands in negotiations
over a new labour agreement, began on Wednesday when grain
handlers stopped work.
    Van der Vorm said that if strikes continued on today's
scale for some time vessels coming to unload grain in Rotterdam
would face delays, but this was not happening yet.
    Wednesday's actions left GEM's facilities 40 pct
operational, and there were only limited strikes yesterday.
    Talks between unions and employers yesterday and today
produced no result, but FNV spokesman Bert Duim said the union
was prepared to put their key demand, for a 36 hour working
week, at the bottom of the agenda.
    Van der Vorm said, however, the union's demands on a range
of issues were far in excess of the management's final offer.


.I 1739
.C
ship;pet-chem;
.W
SOUTH KOREA TO PAY MORE FOR JAPANESE ETHYLENE.
    TOKYO, April 3 - South Korea will pay about 20 pct more for
ethylene imported from Japan in the second quarter of the year
because increased plastic production in both countries has
boosted demand and tightened supplies, chemical industry
sources said.
    South Korea has agreed to pay Japanese trading houses just
over 400 dlrs C and F per tonne, up from an average of 350 dlrs
in the first quarter and throughout 1986, they said.
    South Korean demand for imported ethylene this month has
risen to 17,000 tonnes from 10,000 last month, and the country
may face difficulties covering the extra volume, they said.
    <Korea Petrochemical Industries Corp>, a producer of high
density polyethylene (HDPE) and polypropylene, will more than
double its ethylene requirements to 9,000 tonnes a month from
4,000 when it completes a plant expansion at the end of this
month, the sources said.
    <Honan Ethylene Corp's> import requirements have risen to
8,000 tonnes a month from 6,000 tonnes last year to meet strong
demand from <Honan Petrochemical Co>, which makes HDPE and
ethylene glycol, and <Hangyang Chemical>, which produces
low-density polyethylene and vinyl chloride monomer, they said.
    But Japan's ethylene plants are already operating at almost
full capacity of 4.5 mln tonnes a year just to fulfill domestic
demand, the sources said.
    "And even if Japan had the additional ethylene, there is a
logistical problem of finding extra appropriate-sized vessels
to ship it to Korea," said one trading house source.
    Japanese trading companies are looking to alternative
sources to supply South Korea's needs, including Saudi Arabia,
Qatar and Mexico, they said.
    But long-haul voyages are expensive as the product has to
be shipped at a temperature of minus 103 degrees centigrade to
keep it in a liquid form, they said.
    Japan has no plans to invest further in the ethylene
industry in order to cope with the additional demand, despite
rising prices, trading house sources said.
    South Korea has two projects in hand which will increase
its ethylene production capacity by 500,000 tonnes a year by
the end of 1989, so the strong demand surge for imports is only
a medium-term trend, they said.


.I 1740
.C
gnp;cpi;ipi;
.W
SWISS 1988 INFLATION SEEN AT TWO PCT - INSTITUTE.
    ZURICH, April 3 - Swiss inflation is likely to rise in 1987
and 1988 because of inflationary tendencies in the domestic
economy, the Centre for Economic Research of the Federal
Institute of Technology said in its spring review.
    It forecast a rise in consumer prices of two pct in 1988
compared with 1.3 pct in 1987. Low import prices in 1986 helped
to keep annual inflation down to 0.8 pct.
    The centre said that in general the outlook for the Swiss
economy in 1987 and 1988 remained favourable, despite the more
difficult international economic climate facing export
industry.
    The centre repeated its previous forecast that growth in
Swiss domestic product would slow to 2.2 pct in 1987 from 2.5
pct in 1986. It revised its forecast for 1988 GDP growth to 1.7
pct from 1.6 pct in its last autumn review.
    Domestic demand will continue to replace exports as the
motor of economic growth. Private consumption will grow by
three pct in 1987 and two pct in 1988 against 3.75 pct in 1986.
    Growth in goods exports will slow to 1.75 pct in 1987 from
2.1 pct in 1986 but pick up slightly to 2.5 pct in 1988. All
three figures are well below the Swiss average for recent
years. In 1985, for example, exports increased by 9.1 pct.
    The centre said the strength of the Swiss franc, which has
firmed sharply in recent months, would continue to put pressure
on Swiss exporters.
    It forecast that imports of goods would grow by a more
modest 4.5 pct in 1987 and 3.25 pct in 1988 than in 1986, when
import prices fell substantially and imports rose by 8.2 pct.
    Industrial production will grow by 1.6 pct in 1987 and 1.2
pct in 1988 compared with 4.2 pct in 1986.


.I 1741
.C
sugar
.W
LONDON SUGAR TRADES AT SESSION HIGHS BY MIDMORNING.
    LONDON, April 3 - Raw sugar futures firmed to session highs
by midmorning, securing gains from last night's basically
steady close of 1.00 to 1.80 dlrs a tonne in a 166 lot volume.
    Shortcovering against an oversold situation continued to
play a part in the extended rally with unsettled dollar rates
versus sterling providing additional support.
    Recent and prospective whites buying in the world market
was supportive but the raws section lacked feature, dealers
said.
    India and Egypt bought white sugar this week while next
week sees tenders by Pakistan, Greece and Syria, they said.
    May was at 154 dlrs from 152.80 asked last night.
    All London Daily prices rose two dlrs a tonne on tone.
    The Raws price was set at 150 dlrs Fob and 173 dlrs (107.50
stg) Cif.
    The Whites price was at 192 dlrs from 190 yesterday.


.I 1743
.C
interest
.W
BELGIUM CUTS TREASURY CERTIFICATE RATES.
    BRUSSELS, April 3 - The Belgian National Bank cut interest
rates on one, two and three-month treasury certificates to 7.30
pct from 7.40 pct effective immediately, the bank said in a
telex message.
    The Bank last adjusted its short-term treasury certificate
rates on March 23, when it also reduced rates for all three
periods by 0.10 points.
    A National Bank spokesman said the latest adjustment would
bring the rates closer in line with currently prevailing
interbank interest rates.
    The spokesman said it was too early to predict whether the
move would herald a reduction in discount rate, which currently
stands at eight pct, when the Bank holds its regular weekly
meeting at which the rate is discussed next Wednesday.
    The discount rate generally moves in tandem with the
three-month treasury certificate rate. However, there is no
formal link and the discount rate was not adjusted following
the March 23 changes.


.I 1744
.C
crude
.W
CLOSURE OF BP SWEDEN REFINERY FORECAST.
    STOCKHOLM, April 3 - A Swedish Finance Ministry committee
forecast that British Petroleum Plc <BP.L> may have to close
its refinery in Gothenburg because of an anticipated worsening
of the Swedish petroleum industry's competitiveness.
    It said in a report that the future of the Swedish refining
business was bleak due to the steady drop in domestic oil
consumption since the mid-1970s, a possible tightening of rules
on sulphur content and competition from Norway's Mongstad
facility of <Den Norske Stats Olieselskab> (Statoil) <STAT.OL>
when its expansion is completed in the 1990s.
    The committee said the BP refinery, which lacks a
de-sulphurisation plant, was likely to be closed or sold unless
costly investments were made to enhance the facility's capacity
to refine a broader range of products.
    But the committee noted that capacity utilisation had in
recent years been above that of the European refining industry
on average. The BP plant, in which Sweden's state-owned <OK
Petroleum AB> has a 22 pct, started up in 1967 and has an
annual capacity of 4.7 mln tonnes.
    There was nobody at British Petroleum immediately available
for comment.

.I 1747
.C
sugar
.W
RECENT SUGAR FALL SPARKS SOVIET, CHINESE BUYING.
    LONDON, April 3 - The recent fall in world sugar prices,
due to increased producer pricing sales and evidence of export
availability, has encouraged renewed buying interest from China
and the Soviet Union, London trade house E.D.And F. Man said.
    Further purchases are expected by the Peoples Republic of
China at the lower end of the recent price range, which should
limit the downside movement, it said in its latest monthly
market report.
   "And it is believed that the Soviet Union will need to return
to the market to take a further 250,000/350,000 tonnes for
May/June shipment, Man added.
    The Soviets purchased five cargoes of raws for April/May
shipment towards the end of last month, which brings its total
purchases to around 1.65 mln tonnes, Man said.
    Production estimates for the Thai crop now exceed 2.3 mln
tonnes and the final outturn appears set to reach around 2.5
mln tonnes. However, this upturn in the Thai crop is being
countered by a reduction in China's production forecast to 5.3
mln tonnes from 5.5 mln estimated earlier.
    Market participation by Cuba suggests that its crop could
be close to last year's 7.3 mln tonnes. But even with similar
production Man expects Cuban exports to be significantly down.
    Cuba was reported to be carrying 1.3 mln tonnes of stocks
in September 1985, of which some 440,000 tonnes were used to
boost its 1985/86 exports to about 6.9 mln. But as it will not
be able to draw on surplus stocks this year, Man estimates
Cuba's export availabilty will be reduced to 6.4 to 6.5 mln
tonnes.
    However, Cuba is only one of a large number of exporters
with reduced availability, Man said.
    Since 1980 the total free market export supply has fallen
to 18 mln from about 22 mln tonnes. But at the same time free
market demand has also fallen by almost the same amount, which
has left exporters chasing falling import requirements.
    A fairly tight balance now appears to have emerged. But the
difficult task of keeping production advances at bay still
remains, as at least one more season of production deficit is
needed to eliminate some of the remaining surplus stocks still
overhanging the market, Man said.
    The increasing cases of record production as a result of
record yields and better husbandry have forced sugar producers
to strive for greater efficiency.
    As this increase in efficiency reduces the marginal cost of
production, sugar exporters may become more responsive to
prices and in particular to upward price movements, Man said.
    Commenting on the current row between the EC Commission and
sugar producers, Man said despite the recent improvement in the
level of restitutions, they are still insufficient to fully
compensate producers when exporting on the world market.
    Unless there are further improvements, at least some sugar
is expected to remain in intervention, it added.


.I 1749
.C
dlr;money-fx;
.W
NO INTERVENTION, DOLLAR FIXED AT 1.8162 MARKS.
    FRANKFURT, April 3 - The Bundesbank did not intervene as
the dollar was fixed lower at 1.8162 marks after 1.8270
yesterday, dealers said.
    The dollar firmed slightly from its opening 1.8135/45 marks
in very quiet pre-weekend trading and dealers said they
expected business to remain thin this afternoon.
    "Trading is at an absolute nil, nobody wants to get involved
ahead of next week's meetings," one dealer with a U.S. Bank
said, referring to the Group of Seven industrial nations and
the International Monetary Fund meetings in Washington.
    Dealers saw the dollar staying at current levels but
possibly rising above 1.83 marks on any supporting remarks
emerging from the meetings. "But the dollar's medium-term
direction is soft," one dealer said.
    The dollar could well come under renewed pressure after the
international forums as attention returned to the U.S. And the
U.K.'s trade dispute with Japan, dealers said.
    Cross currency trading was also subdued though sterling's
rise above 1.60 dlrs helped it to firm against the mark. It was
fixed higher at 2.924 marks after yesterday's 2.910.
    The pound was seen staying between 2.90 and 2.93 marks for
the next days, dealers said.
    Eurodollar deposit rates were steady from this morning,
with six month funds unchanged at midpoint 6-11/16 pct. Six
month euromarks stayed at midpoint 3-7/8 pct.
    The Swiss franc firmed to 119.86 marks per 100 at the fix
from 119.71 yesterday and the yen rose to 1.244 marks per 100
from 1.243.
    The French franc was little changed at 30.050 marks per 100
after 30.055 yesterday.


.I 1752
.C
earn
.W
HINDUSTAN LEVER PROFITS RISE FOR 1986.
    BOMBAY, April 3 -
    Shr 8.4 rupees vs seven
    Pretax profit 650.7 mln vs 555.6 mln
    Net profit 390.7 mln vs 325.6 mln
    Sales 8.24 billion vs 7.07 billion
    Div 34 pct vs 30 pct
    Tax 260 mln vs 230 mln
    Dividend payable on June 3
    The company is 51 pct subsidiary of Unilever Plc.The full
name of the company is HINDUSTAN LEVER LTD <HINU.BO>.


.I 1754
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT REVISED UPWARD.
    LONDON, April 3 - The Bank of England said it has revised
its estimate of today's shortfall to 750 mln stg from 700 mln.


.I 1755
.C
veg-oil;soy-oil;
.W
INDIA BUYS VEGETABLE OILS, PAKISTAN TO RETENDER.
    LONDON, April 3 - The Indian State Trading Corporation
(STC) bought 20,000 tonnes of optional origin soybean oil and
6,000 tonnes of rbd palm olein at its import tender yesterday,
traders said.
    Pakistan, however, rejected offers at its tender for 12,000
tonnes of rbd palm oil, but is expected to reenter the market
next week, they said.
    The STC soyoil purchase was for May 20/Jun 20 shipment at
319 dlrs per tonne cif and the palm olein for Apr 25/May 25
shipment at 355 dlrs per tonne.


.I 1756
.C
meal-feed;soy-meal;
.W
DUTCH SOYMEAL IMPORTS FALL IN JANUARY.
    HEERLEN, Netherlands, April 3 - Dutch soymeal imports fell
to 75,500 tonnes in January from 97,070 in December and 120,228
in January 1986, Central Bureau of Statistics figures show.
    The U.S. Was the largest supplier in January with 38,760
tonnes, down from 46,899 in December and 63,111 in January
1986.
    Brazil supplied 1,263 tonnes in January, down from 7,411 in
December and 27,088 in January 1986.
    Dutch imports of Argentine soymeal in January were 34,663
tonnes, down from 41,365 tonnes in December but above the
13,375 tonnes in the year ago month.
    Total Dutch exports of soymeal in January were 128,015
tonnes, down from 133,559 tonnes in December and 155,050
exported in January 1986.
    European Community countries were the main destinations for
Dutch soymeal exports with 102,355 tonnes compared with 124,026
in December and 116,080 in January 1986.
    Among third country destinations, the Soviet Union was the
largest costumer in January, taking 11,985 tonnes compared with
nil in December and 26,074 tonnes in January 1986.


.I 1757
.C
gnp
.W
SPAIN REVISES ECONOMIC TARGETS FOR 1987.
    MADRID, April 3 - Spain has revised some of its main
economic targets for 1987 after studying the performance of the
economy in the first quarter, the economy ministry said in its
monthly bulletin.
    Internal demand is now forecast to rise four pct against a
previous target of 3.5 pct.
    Mariano Rubio, governor of the Bank of Spain, the central
bank, yesterday said internal demand was currently growing at
an annual rate of six pct and it had to be brought down to four
pct if the government were to meet its five pct inflation
target this year. Inflation was 8.3 pct in 1986.
    The forecast for private consumption growth remains
unchanged at three pct, although public consumption is revised
upwards to 2.5 pct from 2.0 pct.
    Growth in domestic demand will fuel imports, expected to
increase by 8.6 pct against an originally estimated 7.1 pct.
    Export growth has been revised downwards to 3.7 pct from
5.2 pct due to the peseta's continuing strength against the
dollar and slack external demand.
    Slow growth of exports and a tight rein on state spending
has lowered estimated GDP growth to three pct in 1987 from an
earlier forecast 3.5 pct. GDP grew by three pct last year.
    The economy ministry is holding its inflation forecast to
five pct, in spite of minister Carlos Solchaga's doubts last
week on whether this target could be maintained if wage
settlements continue to rise above the government's recommended
five pct ceiling.
    Unions and employers dispute the average wage increases
agreed so far this year. Trade unions calculate wage
settlements have produced average rises of 7.3 pct against 5.5
pct estimated by the employers' federation CEOE.


.I 1758
.C
money-fx;interest;
.W
U.K. MONEY MARKET RECEIVES 170 MLN STG HELP.
    LONDON, April 3 - The Bank of England said it has operated
in the money market this morning, purchasing 170 mln stg bank
bills. This compares with the Bank's revised estimate of a 750
mln stg shortfall. In band two the Bank bought 72 mln stg at
9-13/16 pct, in band three 52 mln at 9-3/4 pct and in band four
46 mln at 9-11/16 pct.


.I 1759
.C
sugar
.W
BEGHIN-SAY NOT PLANNING TO WITHDRAW SUGAR.
    By Audrey Stuart, Reuters
    PARIS, April 3 - French sugar producer Beghin-Say is not
currently planning to withdraw the sugar it has placed into
intervention, despite the exceptionally high rebate awarded at
this week's European Community (EC) sugar tender, Beghin-Say
President Jean-Marc Vernes told Reuters.
    The maximum rebate of 46.864 Ecus per 100 kilos on
Wednesday was the largest ever granted, according to traders.
    Vernes said he was satisfied the European Commission has
started to move in the right direction, but said his company
had no plans to change its decision to put sugar into
intervention.
    But Vernes said he hoped that in the next few weeks a final
agreement would be reached with the commission which would
allow operators to withdraw the sugar from intervention.
    European operators offered 854,000 tonnes of sugar into
intervention to protest about export rebates which they say are
too low. Over 785,000 tonnes of this sugar was accepted by the
commission on Wednesday, according to commission sources.
    Under EC regulations, however, operators have another four
to five weeks to withdraw the sugar from intervention before
payment is made for it.
    A total of 706,470 tonnes of French sugar and 79,000 tonnes
of West German sugar has been accepted into intervention, trade
sources said here. This amount represents about a third of
annual EC exports to non-EC countries.
    Beghin-Say declined to specify the amount of sugar it had
offered into intervention, but said it was below 500,000
tonnes.
    Producers say they have been losing 2.5 to 3.0 Ecus on
every 100 kilos exported due to the failure of rebates to fully
bridge the gap between EC and world prices. Wednesday's rebate
was 0.87 Ecus short of what producers say is needed to get an
equivalent price to that for sales into intervention, traders
said.
    Vernes said operators hope to get a rebate which equates to
the full intervention price and said Wednesday's tender was a
step in the right direction.
    Sugar producers here said the volume of sugar authorised
for export since the begining of the current campaign had been
inadequate and that more should be exported now to compensate.
    Trade sources said new regulations governing export
rebates, which are due to be adopted shortly, may smooth the
path for the commission to award larger export rebates in
future.
    One source at a leading French sugar house said it seemed
the commission had understood the protest action and was now
moving towards adapting the situation accordingly, thereby
allowing the operators to withdraw their sugar from
intervention once they got satisfaction.


.I 1760
.C
money-fx
.W
STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE.
    BONN, April 3 - West German Finance Minister Gerhard
Stoltenberg said the currency agreement reached in Paris in
February had been successful and would be continued.
    Stoltenberg told journalists before he attends next week's
International Monetary Fund meeting in Washington that: "The ...
Strategy to stabilise currencies around current levels has
proven its worth and will also determine future developments."
    Stoltenberg declined to comment specifically on what he
would consider to be an undervalued dollar but said a dollar
around 1.80 marks created problems for West Germany's exports.
    Stoltenberg said studies by international organisations had
made it clear that especially in the U.S. And in Japan major
efforts remained necessary to support adjustments in foreign
trade balances via necessary corrections to economic policy.
    "No-one would benefit if, after years of over-valuation, the
U.S. Dollar fell into the other extreme, that is, strong
under-valuation," he said.
    Stoltenberg said West Germany had a keen interest in a
swift agreement between the U.S. And Japan concerning the
current trade dispute over semi-conductors.
    Asked whether he believed the markets would test the Paris
currency accord, Stoltenberg did not comment specifically but
noted that much of what had been discussed in Paris had not
been published.
    The Paris declaration did not state the levels at which
central banks of the major industrialised countries would
intervene.
    Stoltenberg said that everything had been carefully
considered. He said he had nothing further to add.
    Stoltenberg also appeared to suggest that West Germany was
now no longer under any pressure from the U.S. Government to
stimulate its economy.
    He declined to respond specifically to a question on this
subject but said, "You must attach particular importance to the
consensus which was reached in Paris."
    The minister nevertheless added that he would make clear
during his trip to Washington that West Germany's nominal trade
figures gave a false impression about actual trade flows.
    Stoltenberg noted that in 1986 Bonn's exports fell by a
nominal two pct while its nominal imports fell by 10.7 pct.
West Germany's imports dropped largely because of foreign
currency developments and the cheaper price of oil and led to a
record trade surplus last year.
    However, Stoltenberg said that in real terms West Germany's
exports by volume had increased by 1.5 pct while real imports
had risen by a much stronger 6.2 pct.
    In this way West Germany had made its contribution to
economic stability, Stoltenberg added.
    Stoltenberg noted the government expected imports to rise
by a real four to five pct in 1987 with exports stagnating.
    He said it was too early to revise official forecasts for
West Germany's economic growth this year. The government has
forecast an unchanged 2.5 pct rise in Gross National Product.
    The Kiel Institute, a leading research body, is still
expecting growth of three pct but some other research
institutes have revised forecasts down to below two pct.
Stoltenberg said the wide range of predictions showed how many
imponderables had to be taken into account and said no drastic
changes in official forecasts were needed.


.I 1764
.C
dlr;money-fx;
.W
JAPAN ASKS BANKS TO CUT DOLLAR SALES - DEALERS.
    TOKYO, April 3 - The Finance Ministry has asked Japanese
commercial banks to moderate their dollar sales, bank dealers
said.
    They said the Ministry had telephoned city and long-term
banks earlier this week to make the request.
    One dealer said this was the first time the Ministry had
made such a request to commercial banks.
    Finance Ministry officials were unavailable for immediate
comment. Dealers said the Ministry has already asked
institutional investors to reduce their sales of the dollar.


.I 1765
.C
gold;silver;
.W
CBT METALS/FINANCIALS DELIVERY LOCATIONS.
    Chicago, April 3 - The following deliveries are scheduled
for April 6 against Chicago Baord of Trade Futures -
    Silver - 392 lots at Chicago, Illinois.
    Kilo Gold - 21 lots. 16 at Chicago, Illinois, 5 at New
York, New York.


.I 1766
.C
acq
.W
PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW.
    BRISBANE, April 3 - <Pioneer Sugar Mills Ltd> said it
considered the proposed 2.20 dlrs a share cash takeover offer
announced by CSR Ltd <CSRA.S> on March 31 to be too low in view
of the group*hK!UiIe and prospects.
    CSR's bid for the 68.26 pct of Pioneer's 99.80 mln issued
shares it does not already hold values the entire grop_j9culd
make an alternative share offer but has not yet announced
terms.
    Pioneer recommended in a statement that shareholders retain
their stock, pending the board's response once it receives full
details of the CSR offer.


.I 1768
.C
earn
.W
GERMAN CHEMICAL INDUSTRY SEES LOWER PROFITS.
    HANOVER, West Germany, April 3 - West Germany's chemical
industry fears mounting risks will hurt earnings but hopes 1987
turnover will stabilize around 1986's 140 billion marks, Josef
Strenger, a board member of the industry association VCI, said.
    Strenger, management board chairman of Bayer AG <BAYG.F>,
told a news conference at the Hanover trade fair the main
dangers were stagnation in world trade, the lower dollar as
well as crude oil and commodity prices.
    Prospects of higher operating costs were also seen harming
earnings, he said. Turnover took a considerable downturn at the
start of 1987 after falling 5.9 pct in 1986.
    The chemical industry, which relies heavily on exports, was
badly hit by mark appreciation in 1986 and lower turnover was
mainly due to foreign exchange losses, Strenger said.
    Exports fell 6.4 pct to 72 billion marks in 1986 and
competition from U.S. And British firms increased. Savings from
lower oil and commodity prices were eaten up by price
competition and increased costs.
    Strenger said 1986 operating profits of German chemical
firms were slightly worse than the year before but the improved
financial and balance sheet structure, after three good years,
neutralized the negative impact.
    Strenger said the industry would try to increase production
in the U.S. To make up for lost export possibilities out of
West Germany.
    The lower dollar was the main reason for an 8.3 pct fall in
exports to North America, an 11.4 pct drop to Latin America and
22.6 pct plunge to the Middle East.
    Exports to Western Europe eased 3.5 pct and Far East
exports, due to an economic revival in Japan, dropped 5.2 pct.
    Strenger noted that the industry had lost public confidence
following several cases of chemical pollution of the Rhine late
last year.


.I 1770
.C
money-fx;reserves;
.W
GERMAN NET CURRENCY RESERVES RISE.
    FRANKFURT, April 3 - West German net currency reserves rose
by 200 mln marks in the fourth week of March to 82.2 billion,
following a rise of 300 mln marks in the previous week, the
Bundesbank said.
    Non-currency reserves were unchanged at about 2.5 billion
marks, bringing net monetary reserves to 84.7 billion.


.I 1771
.C
wheat;grain;
.W
LONDON GRAINS SEES WHEAT RECOVER FROM LOWS.
    LONDON, April 3 - U.K. Physical wheat values recovered from
initial losses of one to two stg per tonne caused by overnight
news of the release of an additional 300,000 tonnes of
intervention feed wheat for U.K. Weekly home market tenders.
    Consumer buyers were attracted by the cheaper offers,
traders said, and by early afternoon the market had recovered
to one stg down to unchanged.
    U.K. Wheat futures also rallied to end the morning
unchanged to 0.05 stg easier.
    In East Anglia, April deliveries of feed wheat traded at
123 and May at 124 but were subsequently bid one stg a tonne
    The market for denaturable wheat in Liverpool held
comparatively steady with sellers holding back due to uncertain
conditions.
    April deliveries made 127.50 and June 129.50 stg per tonne,
basis Liverpool.
    The fob market for wheat started easier but here again
selling pressure lifted around midday. Apr/Jun shipments traded
fob east coast at 123 stg per tonne. This compared with 124
paid for April yesterday and 125 for May/June.


.I 1772
.C
crude
.W
NORSK HYDRO, SAGA SEEK DRILLING RIGHTS IN GABON.
    OSLO, April 3 - Norwegian oil companies Norsk Hydro A/S
<NHY.OL> and Saga Petroleum A/S <SAGO.OL> said they have
applied for offshore exploration drilling licenses in Gabon on
Africa's west coast.
    Saga Petroleum said it has applied for a 35 pct share and
operatorship on one block, adding Finnish oil company Neste
<NEOY.HE>(25 pct), Spain's Hispanoil (25 pct), and the World
Bank's International Finance Corporation (IFS) (15 pct) have
joined Saga to fill remaining shares in the application.
    Saga spokesman Roy Halvorsen told Reuters he expected
Gabonese officials would reply to the application by Easter.
    Halvorsen said this is the first time Saga has applied to
operate on OPEC-member Gabon's continental shelf, adding that
Italian oil company Agip is heading a group of applicants in a
separate bid for the same license.
    Norsk Hydro has also applied for an undisclosed share in a
single exploration license in which U.S. Oil company Tenneco
has already been assigned operatorship, company spokesman
Bjoern Tretvoll said.


.I 1774
.C
interest
.W
******TOP DISCOUNT RATE AT UK BILL TENDER RISES TO 9.5261 PCT.
Blah blah blah.

.I 1775
.C
money-fx
.W
U.S. TREASURY POLICIES SAID UNCHANGED BY DEPARTURE.
    By Peter Torday
    WASHINGTON, April 2 - The departure of James Baker's
closest aide, Deputy Treasury Secretary Richard Darman, will
not change the course of Washington's domestic and
international economic policies, U.S. officials said.
    Darman, who has worked alongside Baker for six years, was
widely credited with helping him mastermind initiatives on
currency management and international economic cooperation.
    U.S. Officials said Darman also played a key role in
shepherding President Reagan's sweeping tax reform plan through
the U.S. Congress.
    But they flatly dismissed suggestions that his departure,
to the investment banking firm of Shearson Lehman Brothers,
signaled the Baker team was breaking up, or that the Treasury
Secretary himself might leave soon.
    "It really does not mean that, he took the opportunity as it
came up," one official said.
    Another commented, "Baker will miss him, but he's not going
to stand in his way."
    There has been widespread speculation since last autumn
that Darman sought a Wall Street job.
    Officials said Darman felt the passage of tax reform late
last year marked an appropriate moment to bow out.
    Baker acknowledged Darman would be sorely missed.
    "Dick Darman has contributed mightily to the success of this
administration over the past six years and his departure
represents a substantial loss," he said.
    U.S. Officials admitted Darman's absence would be an
undoubted blow to Baker, who has relied on him for policy
advice, both at the White House and, in Reagan's second term,
at the Treasury. One aide once described Darman as
"indispensable" to Baker.
    Baker is widely thought to want a more stable currency
system and Darman is generally credited by officials of other
nations as Baker's leading theorist on this issue, favouring
target zones to limit currency fluctuations.
    Earlier this year, monetary sources said the U.S. Treasury
unsuccessfully sounded out allies on a target zone system.
    But a U.S. Official disputed the assessment that, with
Darman gone, Baker would abandon international initiatives.
    Baker's work as head of Reagan's Economic Policy Council,
spearheading trade policy, and his skills in negotiating with
the Democrat-controlled Congress will go on as before.
    Darman's strength was not as an economist, but as a
political strategist "and that's Baker's strength too," the
official said.
    There were already indications that Baker, who throughout
his time in government has relied on a closely-knit circle of
advisers, has moved swiftly to find a successor.
    One possibility is that Baker might turn to George Gould,
who holds the number three Treasury position of
Under-Secretary.
    Gould, another close confidante, has known Baker for years.
    Before joining the Treasury in November 1985, Gould was a
partner at the Wall Steet firm of Wertheim and Co and formerly
headed Donaldson, Lufkin and Jenrette Securities Corp.
    The Darman announcement came on the eve of the semi-annual
meetings of the International Monetary Fund and the World Bank,
where many policies Darman helped shape will be debated.
    He helped Baker devise the September, 1985 Plaza Agreement,
when the United States, Japan, West Germany, France and Britain
curbed the dollar's strength. The pact was a major turning
point in U.S. Policy, ending a period of disdain for economic
cooperation and intervention in currency markets.
    Darman also worked on some other Baker initiatives, like
the Tokyo Summit agreement to intensify coordination of
economic policies among the leading industrial countries and
the recent Paris Agreement to stabilise currencies and
stimulate global growth.
    These policies are collectively aimed at redressing the
huge gap between Japan and West Germany's trade surpluses and
the United State's massive trade deficit.
    That policy goal still remains a prime objective of the
Reagan Administration and will not change with Darman's
departure.


.I 1779
.C
interest
.W
TOP DISCOUNT RATE AT UK BILL TENDER 9.5261 PCT.
    LONDON, April 3 - The top accepted rate of discount at the
weekly U.K. Treasury bill tender rose to 9.5261 pct  from
9.3456 pct last week.
    Applications at the lowest accepted price of 97.625 stg
 were allotted around 81 pct of the amount applied for, and
 applications above that price were allotted in full, the Bank
 of England said.
    A total of 100 mln stg of Treasury bills was offered for
sale this week.
    Last week, the average rate of discount was 9.3157 pct.


.I 1781
.C
money-fx;interest;
.W
U.K. MONEY MARKET DEFICIT FURTHER REVISED UPWARD.
    LONDON, April 3 - The Bank of England said it has revised
its estimate of today's shortfall to 800 mln stg from 750 mln,
before taking account of 170 mln stg morning assistance.


.I 1782
.C
cocoa
.W
DUTCH COCOA BEAN IMPORTS RISE IN JANUARY.
    ROTTERDAM, April 3 - Total Dutch imports of cocoa beans
rose to 17,978 tonnes in January from 13,961 in January 1986,
while exports fell to 1,852 tonnes from 3,111, the Central
Bureau of Statistics said.
    Cocoa butter imports rose slightly to 1,699 tonnes from
1,507, while exports fell slightly to 6,211 from 6,293 tonnes.
    Imports of cocoa powder fell to 316 tonnes from 469 and
exports to 5,944 from 6,106 tonnes.


.I 1783
.C
coffee
.W
DUTCH GREEN COFFEE IMPORTS FALL IN JANUARY.
    HEERLEN, April 3 - Dutch green coffee imports fell to
10,430 tonnes in January from 13,506 tonnes in January 1986,
and exports fell to 366 tonnes from 615, the Central Bureau of
Statistics said.
    Imports of Colombian coffee were 2,169 tonnes (3,025 in
January 1986), Brazilian 483 (3,715), Indonesian 455 (145),
Guatemalan 196 (126), Cameroun 464 (560) and Ivory Coast 353
(839).


.I 1784
.C
money-fx
.W
EC MINISTERS WILL DISCUSS STRENGTHENING EMS FLOAT.
    By Tony Carritt, Reuters
    BRUSSELS, April 3 - European Community finance ministers
and central bankers meet in Belgium this weekend to discuss
strengthening Europe's joint currency float amid continuing
worries about turbulence on foreign exchanges.
    Belgian Finance Minister Mark Eyskens, who will host the
informal talks, told Reuters the ministers and central bank
chiefs would discuss the situation on currency markets in the
light of the February agreement among leading industrialised
countries to stabilise exchange rates around present levels.
    In an interview, Eyskens said he felt the Paris accord
between the United States, Japan, West Germany, France, Britain
and Canada had proved itself "more or less workable."
    But doubts over its effectiveness and durability have been
growing since fears of a trade war between the United States
and Japan over computer microchips pushed the dollar to a
record low against the surging yen early this week.
    The talks, at the Belgian resort of Knokke, are being held
to coordinate the EC's positions on monetary issues and Third
World debt ahead of the Spring meetings of the International
Monetary Fund and World Bank in Washington next week.
    The EC gathering begins tonight with a dinner but the main
discussions will take place tomorrow.
    Continued international currency turbulence could undermine
plans for reinforcing the European Monetary System, the joint
float holding eight EC currencies within narrow fluctuation
bands, which will feature high on the weekend agenda.
    Eyskens has repeatedly said that Europe needs a period of
calm on world currency markets, and in particular a more stable
dollar, before it can set about strengthening the EMS to make
it more resilient against exchange rate swings.
    The EMS has been taking a battering over the last year as
the falling dollar has sent funds surging into the dominant EMS
currency, the West German mark, forcing ministers to undertake
two major realignments of parities within nine months.
    In the interview, Eyskens made clear he was hoping for a
wide-ranging discussion on the future of the eight-year-old EMS
on the basis of proposals for bolstering it drawn up by the
EC's Monetary Committee and the Committee of Central Bank
Governors.
    The committees were asked to come up with the proposals
after the last reshuffle of EMS exchange rates in January.
    Eyskens repeated calls for the European Currency Unit, the
fledgling EC currency at the core of the system, to take over
the mark's dominant role in the EMS - a proposal that has met
with a cool response in West Germany.
    He said EC Commission President Jacques Delors would report
to the meeting on problems raised by plans to liberalise
capital movements fully within the 12-nation bloc by 1992, such
as the need for harmonising taxes and banking controls.
    Eyskens said liberalisation of capital movements without
strengthening the EMS would be an element of destabilisation in
the Community. 
    He said the crucial issue in the debate was whether member
states were willing to push further towards the EC's goal of
monetary integration on the basis of an EMS that included
management of exchange rates by some kind of common
institution, instead of by national central banks as at
present.
    Plans for the creation of such an institution, foreseen by
the EMS's founding fathers, have been thwarted by the
reluctance of some countries, notably West Germany, to gove up
their sovereignty in the monetary field.
    EMS development has also been held up by Britain's refusal
so far to join the system's core exchange rate mechanism.


.I 1786
.C
reserves
.W
******CANADA MARCH FOREIGN RESERVES RISE 1.23 BILLION U.S. DLRS - OFFICIAL.
Blah blah blah.

.I 1787
.C
jobs
.W
U.S. MARCH JOBLESS RATE FELL TO 6.6 PCT.
    WASHINGTON, April 3 - The U.S. civilian unemployment rate
fell to 6.6 pct in March from 6.7 pct in February, the Labor
Department said.
    The number of non-farm payroll jobs rose 164,000 last month
after rising a revised 236,000 in February. That was down from
the previously reported 337,000 rise in February.
    The March unemployment rate was the lowest since March,
1980. It had remained unchanged at 6.7 pct for three straight
months before the March decline.
    The rise in non-farm payrolls was the smallest since a
decline last June of 75,000, the department said.
    Last month's unemployment rate was down from the 7.2 pct
level in March, 1986.
    Growth in jobs continued in March but was slower than in
recent months, with the gains concentrated in service
industries.
    The number of goods-producing jobs fell 68,000 in March,
while service-producing jobs rose 232,000 to bring the total
jobs in the department's survey of businesses to 102.03 mln in
March.
    Business and health services showed the largest gains in
jobs, while manufacturing employment fell by 25,000.
    The average work week fell to 34.8 hours in March from 35.0
hours in February, the department said.
    Manufacturing hours fell to 40.9 per week from 41.2 hours
in February, but overtime hours increased to 3.7 from 3.6.
    The department's survey of households showed the number of
unemployed stood at 7.85 mln out of a work force of 119.2 mln.
    The number of persons working part time for economic
reasons fell in March to 5.46 mln from 5.78 mln in February.
    The loss of factory jobs brought the March total to 19.19
mln jobs and was concentrated in automobile, electrical and
electronic manufacturing.
    Construction employment also lowered the number of jobs in
the goods-producing sector, falling by 45,000 after seasonal
adjustment, the department said.
    Mining employment was little changed in March and has not
experienced any substantial erosion since the rapid job losses
in oil and gas drilling in the first two-thirds of 1986.
    Other service industries that increased jobs last month
were finance, insurance, and real estate.


.I 1788
.C
money-fx;interest;
.W
U.K. MONEY MARKET GETS 347 MLN STG AFTERNOON HELP.
    LONDON, April 3 - The Bank of England said it has operated
in the money market this afternoon, buying back bills totalling
347 mln stg. This brings the total help so far today to 517 mln
stg and compares with the Bank's revised estimate of an 800 mln
stg shortfall.
    The central bank purchased in band one 20 mln stg at 9-7/8
pct, in band two 254 mln at 9-13/16 pct, in band three 66 mln
at 9-3/4 pct and in band four seven mln stg at 9-11/16 pct.


.I 1791
.C
acq
.W
ALTEX <AII> SETS ACQUISITION OF COMPUTER FIRMS.
    DENVER, April 3 - Altex Industries Inc said it has agreed
in principle to buy 82 pct of two privately-held affiliated
computer retail companies for an undisclosed amount.
    Altex said the Denver-based companies had revenues of over
seven mln dlrs last year. They are Integrated Management Data
Systems Inc, which sells accounting software systems to the oil
and gas industry, and Integrated Management Systems Micro
Distribution Division Inc, which distributes micro-computer
products.
    Altex said it expects to close the transaction, which is
subject to financing, in July.


.I 1792
.C
ship
.W
AUSTRALIA TUG CREWS BAR FOREIGN CONTAINER SHIPS.
    SYDNEY, April 3 - Tug crews are preventing the movement of
foreign-flag container vessels in and out of the ports of
Sydney, Melbourne and Fremantle, shipping sources said.
    They said maritime unions imposed bans on late Wednesday
for reasons that are obscure but seem to be linked with claims
for a pay rise above the 10 dlrs a week awarded by the
Arbitration Commission nationally to all workers recently.
    Only about 10 vessels are being delayed but the bans will
affect container terminal movements and will disrupt liner
schedules, they said.
    The dispute goes to the Commission on Monday, they said.


.I 1793
.C
earn
.W
STANLINE INC <STAN> REGULAR DIVIDEND.
    NORWALK, Calif., April 3 -
    Qtly div eight cts vs eight cts in prior qtr
    Payable April 30
    Record April 15
    Company said its board intends to declare cash dividends
quarterly and plans to pay a five pct stock dividend annually
following the close of each fiscal year. The initial five pct
stock dividend was paid December 22 to holders of record
November 30.


.I 1796
.C
acq
.W
TALKING POINT/SANTA FE SOUTHERN <SFX>.
    By Philip Barbara, Reuters
    CHICAGO, April 3 - Santa Fe Southern Pacific Corp may have
more difficulty combining its two railroads than fending off a
possible takeover by Henley Group <HENG>, which has accumulated
almost a five pct stake in the real estate and railroad
conglomerate, analysts said.
    Takeover speculation has surrounded Santa Fe since Henley
disclosed its stake in the company earlier this week, but
analysts and a Santa Fe official were skeptical a takeover is
its intention.
    Analysts also said the company has strong defenses that
would easily deter any suitor - one of those being its problems
combining its two railroad properties, which hang in regulatory
limbo.
    Richard Fischer of Merrill Lynch and Co Inc said that Santa
Fe at December 31 had 580 mln dlrs in cash and cash
equivalents, while its long-term debt to capital was just over
25 pct. "This gives them plenty of borrowing power," he said,
which could be used against an unwanted suitor.
    Henley Group's Chairman Michael Dingman has said he wants
to take major positions in undervalued natural resource
companies. He also told Reuters in an interview he is seeking
an acquisition of from two billion to eight billion dlrs.
    Santa Fe officials don't appear concerned that Henley might
launch a takeover. "I would not characterize the atmosphere
around here as one of concern," one Santa Fe executive said
about Henley.
    "I think it's wrong to assume Dingman has formed a firm
strategy with Santa Fe," said Mark Hassenberg, who covers
Henley for DLJ Securities.
    Analysts say the potential of Santa Fe's land assets are
likely to be realized slowly. They add that Santa Fe's efforts
to merge its two railroads remain in regulatory limbo,
sidetracking many of its strategic plans for the foreseeable
future.
    These realities, they said, support the Henley Group's
statement that its Santa Fe stake is only an investment.
    The more pressing problem facing Santa Fe is overcoming
difficulties in merging its two railroads, the Atchison, Topeka
and Santa Fe Railway Co and Southern Pacific Transportation Co.
The merger would create the nation's second-longest railroad.
    Last July the Interstate Commerce Commission (ICC) denied
the merger on anticompetitive grounds.
    The company since has granted trackage-sharing rights to
four western railroads to meet the ICC's concerns and persuade
it to reopen the hearings in its three-year-old struggle to
merge the lines.
    "My guess is the commission will decide in three to six
weeks whether to reopen hearings," Fischer said.
    "I believe they've made an effort to satisfy the ICC's
objections," he said. "But in doing so they haven't pleased
everyone. Before they had Burlington Northern on their side,
now Burlington is opposed to the way trackage rights are set
up."
    If the hearings are reopened, analysts predicted it will
take six to nine months for everyone to have their say, and up
to another year for the ICC to decide.
    Santa Fe is in the midst of a 50-mln-share stock buyback
program begun in 1984. It has bought back 33.7 mln shares as of
February 1, when it had 154.7 mln shares outstanding, a
spokesman said.
    Among the shares repurchased were two stakes owned by
Norfolk Southern, one of 3.4 mln shares bought in 1986 and
another of 1.7 mln shares in 1985, one analyst said.
    James Voytko at Paine Webber believes Santa Fe could fight
off the Henley Group with its cash and credit. Citing the share
buybacks from Norfolk Southern, he said one of Santa Fe's
options, if threatened, could be to buy the Henley stake.
    "It is indeed possible that Dingman sees this as a
low-risk, opportunistic investment," Voytko said.
    "People who follow Santa Fe have given me values of 45 dlrs
to 50 dlrs a share," said DLJ Securities' Hassenberg. "But I'm
certain that in Dingman's mind, the company is worth more than
that in breakup value."


.I 1798
.C
reserves
.W
CANADIAN FOREIGN RESERVES SURGE IN MONTH.
    OTTAWA, April 3 - Canadian foreign reserve holdings rose
1.23 billion U.S. dlrs in March to 7.77 billion dlrs, the
Finance Department said.
    The department said the change from February included a
decrease of 258.1 mln dlrs from the repayment, at maturity, of
a 1982 Swiss Franc 400 mln issue.
    Also included was also a 112.8 mln dlr decline from a net
redemption of Canada bills. The par value of bills outstanding
was 800.7 mln dlrs at March 31.
    This month's reserves were 4.49 billion dlrs above March,
1986's total of 3.28 billion dlrs.
    Reserve holdings in U.S. dlrs at end of March versus end of
February were as follows.
    - U.S. dlrs 5.98 billion vs 4.47 billion,
    - other foreign currencies 37.1 mln vs 319.9 mln,
    - gold 874.0 mln vs 864.1 mln
    - special drawing rights 191.8 mln vs 188.6 mln,
    - IMF Reserves 689.7 mln vs 705.7 mln.


.I 1799
.C
grain
.W
JAPAN STUDY URGES FOREIGN ACCESS TO FARM MARKETS.
    TOKYO, April 3 - Japan should increase foreign access to
its farm products market, while encouraging further development
of domestic agriculture, a government report said.
    The white paper on agriculture for the year ended March 31
said active participation in writing world farm trade rules at
the next round of General Agreement on Tariffs and Trade (GATT)
talks will help prepare Japan to improve access.
    Agriculture Ministry sources said the paper marked an
easing in Japan's tough position on agricultural imports which
stressed the need for strict controls on some products to
maintain self-sufficiency in food.
    Japan now produces only 30 pct of its annual grain needs,
down from 61 pct some 20 years ago, official figures show.
    The paper said Japanese agriculture has been slow to
improve productivity and demand/supply imbalances.
    The relative shortage of farmland in Japan is mainly
responsible for higher domestic prices, it said.
    The strong yen has meant lower input material prices but
has also resulted in higher agricultural imports which has
worsened working conditions among part-time farmers, the paper
said.
    This could make it difficult to improve the industry's
structure, the paper said.
    To solve these problems and to reduce farm product prices
to more reasonable levels, Japan should try to restructure the
the agricultural sector to improve productivity and make it
self-supporting, it said.


.I 1800
.C
earn
.W
HILTON <HLT> 1ST QTR EARNINGS UP ABOUT 37 PCT.
    BEVERLY HILLS, Calif., April 3 - Hilton Hotels Corp said
its first quarter net income rose 37 pct, paced by strength in
both hotels and gaming.
    Based on preliminary results, the company said, net income
rose to about 24 mln dlrs, or 96 cts a share, from 17.4 mln
dlrs, or 70 cts a share, in 1986's initial three months.


.I 1803
.C
acq
.W
PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW.
    BRISBANE, April 3 - <Pioneer Sugar Mills Ltd> said it
considered the proposed 2.20 dlrs a share cash takeover offer
announced by CSR Ltd <CSRA.S> on March 31 to be too low in view
of the group*hK!UiIe and prospects.
    Pioneer recommended in a statement that shareholders retain
their stock, pending the board's response once it receives full
details of the CSR offer.


.I 1805
.C
alum
.W
SURALCO OFFERS CASH FOR WORKERS TO LEAVE.
    THE HAGUE, April 3 - The U.S.-owned <Surinam Aluminum
Company> (SURALCO) offered workers a lump sum and up to five
months' wages to quit the firm because jungle-based rebels have
disrupted bauxite mining and alumina smelting, ANP said.
    The Dutch news agency said SURALCO, a subsidiary of the
Aluminum Company of America(ALCOA) wanted to reduce its work
force because it had been hard hit by guerrilla attacks that
cut power lines to the area in January.
    All bauxite mining at Moengo ceased four months ago and
SURALCO's Paranam alumina smelter is using imported bauxite.


.I 1808
.C
acq
.W
******GENERAL PARTNERS WILLING TO PAY 110 DLRS/SHARE FOR GENCORP.
Blah blah blah.

.I 1809
.C
money-fx;interest;
.W
U.K. MONEY MARKET RECEIVES 205 MLN STG LATE HELP.
    LONDON, April 3 - The Bank of England said it has provided
around 205 mln stg late assistance to the market, bringing the
total help today to 722 mln which compares with the Bank's
revised deficit forecast of 800 mln stg.


.I 1810
.C
money-supply
.W
BELGIAN MONEY SUPPLY RISES IN FOURTH QUARTER 1986.
    BRUSSELS, April 3 - Belgian total money stock rose to
1,140.4 billion francs at the end of 1986 from 1,115.4 billion
at the end of the third quarter of last year and 1,055.0
billion at the end of 1985, Belgian National Bank figures
showed.
    Paper money rose to 404.1 billion francs from 394.1 billion
and 383.5 billion respectively, other forms of privately held
money to 679.5 billion from 652.7 billion and 616.0 billion.
    Money held by the public authorities fell to 56.8 billion
francs from 68.6 billion at the end of the previous quarter but
was above the 55.5 billion at the end of 1985, the bank said.
    The government does not set money supply targets, arguing
they are inappropriate to a small economy with major trading
and monetary links with much larger trading countries.


.I 1811
.C
money-fx
.W
STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE.
    BONN, April 3 - West German Finance Minister Gerhard
Stoltenberg said the currency agreement reached in Paris in
February had been successful and would be continued.
    Stoltenberg told journalists before he attends next week's
International Monetary Fund meeting in Washington that: "The ...
Strategy to stabilise currencies around current levels has
proven its worth and will also determine future developments."
    Stoltenberg declined to comment specifically on what he
would consider to be an undervalued dollar but said a dollar
around 1.80 marks created problems for West Germany's exports.
    He said studies by international organisations had made it
clear that especially in the U.S. And in Japan major efforts
remained necessary to support adjustments in foreign trade
balances via necessary corrections to economic policy.
    "No-one would benefit if, after years of over-valuation, the
U.S. Dollar fell into the other extreme, that is, strong
under-valuation," he said.
    Stoltenberg said West Germany had a keen interest in a
swift agreement between the U.S. And Japan concerning the
current trade dispute over semi-conductors.
    Asked whether he believed the markets would test the Paris
currency accord, Stoltenberg did not comment specifically but
noted that much of what had been discussed in Paris had not
been published.
    The Paris declaration did not state the levels at which
central banks of the major industrialised countries would
intervene. Stoltenberg said that everything had been carefully
considered. He said he had nothing further to add.


.I 1812
.C
coffee
.W
BRAZILIAN COFFEE RAINFALL.
    SAO PAULO, APRIL 3 - THE FOLLOWING RAINFALL WAS RECORDDD IN
THE AREAS OVER THE PAST 24 HOURS
     PARANA STATE UMUARAMA 10.6 MILLIMETRES, PARANAVAI 12.2 MM,
LONDRINA 6.0 MM, MARINGA 8.0 MM.
    SAO PAULO STATE: PRESIDENZE PRUDENTE 1.0 MM, VOTUPORANGA
26.0 MM, FRANCA NIL, CATANDUVA 0.1 MM, SAO CARLOS NIL, SAO
SIMAO NIL.

.I 1815
.C
interest
.W
AVERAGE DISCOUNT RATE AT UK BILL TENDER 9.5195 PCT.
    LONDON, April 3 - The average rate of discount at today's
U.K. Treasury bill tender rose to 9.5195 pct from 9.3157 pct
last week, the Bank of England said.
    This week's 100 mln stg offer of 91-day bills met
applications of 327 mln stg, the bank said.
    Applications for bills dated Monday to Friday at the top
accepted rate of discount of 9.5261 pct were allotted about 81
pct.
    Next week 100 mln stg of Treasury bills will be offered,
replacing 100 mln stg of maturities.


.I 1817
.C
trade
.W
IMF, WORLD BANK TO MEET AMID NEW INFLATION FEARS.
    By Alver Carlson, Reuters
    WASHINGTON, April 3 - Amid new concerns about inflation,
interest rate increases and trade confrontations,
finance ministers and central bankers meet next week to discuss
a deteriorating global debt and economic situation.
    The meetings, under the auspices of the International
Monetary Fund and World Bank, come as interest rates are
turning higher and the already-weak dollar has sunk further,
upsetting bond and stock markets.
    Uncertainty is growing about the vitality of the global
economy and whether the heavily-indebted countries can continue
to carry the burden of their growing debt without vast new
assistance.
    Monetary and diplomatic sources said there are no signs
any new debt initiative of the sort that Treasury Secretary
James Baker unveiled 18 months ago in Seoul is in the works.
    The strategy has drawn a serious challenge from Brazil,
which suspended interest payments on 67 billion dlrs of
commercial bank debt last month. The Banks have responded by
laying the groundwork for writing down Brazilian loans.
    Separately, French Prime Minister Jacques Chirac, in a
visit earlier this week with President Reagan, sounded out the
administration on a plan to funnel worldwide grain surpluses to
the very poorest states.
    The French plan is certain to be discussed by the ministers
in detail during next week's meetings and will undoubtedly be
embraced by the developing countries.
    "There's interest on the part of some countries for looking
at the support of the special problems of the very poorest
countries, because their position is so extreme," a Reagan
administration official said.
    He suggested Washington was open to disussing the issue.
    The meetings will also assess the success of the Baker debt
initiative, which called for new funding to help debtor
countries grow out of their problems.
    The largest industrial countries have been attempting to
coordinate economic policy in the hope of controlling the
decline of the dollar, U.S. trade and budget deficits and other
problems.
    At the same time, the industrial countries see little
evidence of a strengthening of economic activity and the Fund
forecasts they will grow 2.5 pct.
    The United States sees 3.2 pct growth for itself, 
continuing its expansion for a fifth year, and has asked other
industrial countries to stimulate their economies.
    These issues directly affect the debt problem and the
ability of the debtor countries to grow out of their
difficulties.
    In recent years, U.S. markets have absorbed the exports of
developing country, allowing them to earn critical foreign
exchange. But the United States wants to cut its trade deficit,
running at a record 169.8 billion dlrs, and is pressing others
to import more from developing countries.
    The discussions, from April six to 10, will be
wide-ranging, touching everything from interest rates to the
impact of development loans on the environment, according to
monetary sources.
    The talks will include an examination of trade
protectionist pressures in the wake of a decision by the Reagan
administration to place some 300 mln dlrs in tariffs on
microchip products from Japan, the sources said.
    The move accelerated the dollar's decline as financial
markets grew alarmed that trade war was in the offing.
    There is concern that the action, prompted by U.S. charges
that Japan has been selling computer chip products below fair
market value and has kept its own market closed to imports,
further undermining the international trading system.
    At the same time, the ministers will discuss the
fundamental price weakness in basic commodities, the export
mainstay of many developing countries.
    The so-called Group of Five industrial countries -- the
United States, Japan, West Germany, France and Britain -- will
gather for the first time since their February talks in Paris,
where they agreed to keep the dollar from sliding further.
    The Five will be joined later by Italy and Canada for
further debate on economic policy coordination.
    As part of the Paris accord, surplus countries such as
Japan agreed to stimulate their economies, while America
said it would reduce its federal budget deficit.
    Other major issues of the meetings include a U.S. bid to to
have a larger say in approving loans of the Inter-American
Development Bank, strengthening the link between loans and
economic policy changes in debtor nations.
    Washington is also pressing the World Bank to take more
account of the environment when making loan for dams and other
projects.
    The new head of the Bank, Barber Conable, has said this
issue is being reviewed and will be part of a reorganization
plan for the Bank, now being prepared.


.I 1818
.C
ship;grain;
.W
LONDON FREIGHT MARKET FEATURES USSR TIMECHARTERS.
    LONDON, April 3 - Active timecharter fixing by Soviet
operators to cover USSR grain imports featured the freight
market, ship brokers said.
    At least two fixtures were reported on Soviet account to
lift EC grain, with a 22,000 tonner booked from Tilbury for a
voyage via lower Baltic Sea and redelivery passing Skaw at
4,000 dlrs daily and a 27,000 tonner from Ceuta for a voyage
via the U.K. And redelivery Skaw-Cape Passero at 4,500 dlrs
daily.
    The Soviets also secured a 34,000 tonner from Gibraltar for
a trans-Atlantic round trip at 4,500 dlrs daily and a 61,000
tonner for similar business at 6,750 dlrs daily.
    Brokers said several other fixtures were also thought to be
connected with Soviet grain, including a 69,000 tonner from
Taranto for five to seven months at 6,500 dlrs daily. Similar
fixing was reported yesterday at 6,000 dlrs.
    Other timecharter fixing included a 14,000 tonner from
Indonesia to the U.S. Gulf at 2,800 dlrs daily and a combined
carrier of 75,000 tonnes dw from the U.S. Gulf to Italy at
9,000 dlrs daily.
    Severel vessels were booked from Antwerp-Hamburg range,
including a 61,000 tonner bound for Singapore-Japan at 7,500
dlrs daily and a 16,000 tonner destined for west coast India at
5,000 dlrs.
    Grain fixing was much quieter out of the U.S. Gulf, with no
fresh business seen on the significant routes to the Continent
or Japan, although tonnage was secured for at least five small
corn cargoes from the Gulf to Jamaica at between 21 and 25
dlrs. Wheat from the River Plate and Buenos Aires to Sri Lanka
received 26 dlrs.
    Market talk suggested 11 dlrs had been paid for grain from
the U.S. North Pacific to Japan but no confirmation was
available.
    Fairly active grain fixing emerged out of the Continent,
however, with maize covered from Nantes to Egypt at 15 dlrs,
and bagged flour from Greece to China at 27 dlrs.
    Barley cargoes were arranged from Immingham to the Red Sea
at 17.25 dlrs and from Foynes to Jeddah at 17.25 dlrs.


.I 1820
.C
nat-gas
.W
NERCO <NER> TO ACQUIRE INTEREST IN GAS FILED.
    PORTLAND, Ore., April 3 - Nerco Inc said it has agreed to
acquire a 47 pct working interest in the Broussard Gas Field in
southern Louisiana from privately-owned <Davis Oil Co> for
about 22.5 mln dlrs in cash.
    Nerco said the interest being purchased will give it
estimated proven oil and gas reserves equal to six billion
cubic feet of natural gas. The property includes six gas wells,
one oil well two undeveloped drilling locations, a central
production facility and a gas gathering system.
    Nerco is 90 pct owned by PacifiCorp <PPW>.


.I 1821
.C
acq
.W
CANRAD <CNRD> ACQUIRES MEASUREMENT SYSTEMS.
    NEWARK, N.J., April 3 - Canrad Inc said it acquired the
Measurement Systems Division of <Page-Wilson Corp> for an
undisclosed amount of cash.
    Canrad said the acquisition is expected to increase its
annual revenues by about 10 mln dlrs.


.I 1822
.C
acq
.W
PANTERA'S  <PANT> ACQUIRES 10 RESTAURANTS.
    ST. LOUIS, April 3 - Pantera's Corp said it closed on its
agreement to acquire ten pizza restaurant locations in
southeastern Colorado.
    It said the purchase price was 1,250,000 dlrs, which was
paid by cash and stock.


.I 1826
.C
copper
.W
NORANDA SAYS FIRE CAUSED 10 MLN DLRS IN DAMAGE.
    Murdochville, Quebec, April 3 - <Noranda Inc> said a copper
mine fire that killed one miner and trapped 44 others for
nearly a day caused an estimated 10 mln Canadian dlrs in
damage.
    The fire, which started Wednesday and burned for more than
24 hours, destroyed the mine's three-year-old conveyor system,
officials said.
    Michel Lefebvre, vice president of operations, said Noranda
will operate the mine at about one third of its normal 72,000
short ton annual finished capacity, using above ground
reserves, until it decides whether to keep the mine open.
    "The events we sustained yesterday and the day before are a
very serious setback for Gaspe Mines operations," Lefebvre said.
Gaspe Mines is the name of the Noranda division that operates
the Murdochville mine.
    He said it would take four or five months to bring
operations up to full capacity if the company decides to do so,
adding that he believes there is a good chance Noranda will
fully reopen the mine.


.I 1827
.C
acq
.W
GENERAL PARTNERS TO RAISE BID FOR GENCORP <GY>.
    AKRON, Ohio, April 3 - <General Partners> said it was
prepared to raise its bid for GenCorp Inc to 110 dlrs cash per
share from 100 dlrs per share.
    In a letter from General Partners to A. William Reynolds,
chairman and chief executive officer of GenCorp, the company
stated that if GenCorp could prove the company was worth more,
General Partners would be willing to consider an even higher
price.
    General Partners also left open the possibility of an
alternative to an all-cash offer.
    General Partners told GenCorp if it believed shareholders
would be better served by a smaller cash price with a security
representing a continuing long-term interest in GenCorp's
prospects, it would be willing to discuss an alternative.
    Specifically, General Partners said it was prepared to
discuss an acquisition giving shareholders a continuing
interest in Aerojet General, a valued business of GenCorp.


.I 1829
.C
earn
.W
MANGOOD CORP <MAB> YEAR OPER LOSS.
    FORT ATKINSON, WIS., April 3 -
    Oper shr loss 6.07 vs loss 7.64 dlrs
    Oper net loss 6,235,000 vs loss 4,801,000
    Sales 70.1 mln vs 60.6 mln
    Avg shrs 1,028,000 vs 629,000
    NOTE: 1986 earnings exclude a gain on restructuring of
3,143,000 dlrs, or 3.01 dlrs a share


.I 1830
.C
copper
.W
NORANDA COPPER MINE FIRE CAUSED HEAVY DAMAGE.
    MURDOCHVILLE, Quebec, April 3 - <Noranda Inc> said a copper
mine fire that killed one miner and trapped 44 others for
nearly a day caused an estimated 10 mln Canadian dlrs in
damage.
    The fire, which started Wednesday and burned for more than
24 hours, destroyed the mine's three-year-old conveyor system,
officials said.
    Michel Lefebvre, vice president of operations, said Noranda
will operate the mine at about one-third of its normal 72,000
metric ton annual finished capacity, using above ground
reserves, until it decides whether to keep the mine open.
    "The events we sustained yesterday and the day before are a
very serious setback for Gaspe Mines operations," Lefebvre said.
Gaspe Mines is the name of the Noranda division that operates
the Murdochville mine.
    He said it would take four or five months to bring
operations up to full capacity if the company decides to do so,
adding that he believes there is a good chance Noranda will
fully reopen the mine.


.I 1831
.C
earn
.W
<AMERICAN WEST BANK> FIRST QTR NET.
    ENCINO, Calif., April 3 -
    Net 90,501 vs 56,960
    Assets 42.0 mln vs 34.9 mln
    Deposits 35.9 mln
    Loans 27.6 mln vs 23.9 mln
    NOTE: earnings per share and 1985 deposits figure  not
supplied by company.


.I 1835
.C
acq
.W
R.R. DONNELLY <DNY> TO SELL CABLE SYSTEM.
    CHICAGO, April 3 - R.R. Donnelly and Sons Co said it
reached an agreement with Adams-Russell Co Inc <AAR> to sell
Adams its Rockford, Ill., cable system for an undisclosed
price.
    R.R. Donnelly said it expects the deal to close in about
120 days, subject to regulatory approvals and other conditions.
    The cable system serves about 51,000 subscribers in the
communities of Rockford, Loves Park, Machesney Park, Cherry
Valley, Morristown and Winnebago County, Ill., R.R. Donnelly
said.


.I 1838
.C
earn
.W
BIOMET INC <BMET> 3RD QTR FEB 28 NET.
    WARSAW, Ind., April 3 -
    Shr 18 cts vs 13 cts
    Net 2,133,000 vs 1,384,000
    Revs 14.1 mln vs 11.7 mln
    Nine mths
    Shr 49 cts vs 36 cts
    Net 5,657,000 vs 3,728,000
    Revs 39.7 mln vs 31.8 mln


.I 1841
.C
grain;corn;
.W
SPAIN AGREES SALE OF CORN TO GREECE.
    MADRID, April 3 - Greece has agreed to buy between 27,000
and 33,000 tonnes of Spanish corn, a spokesman for Cargill's
Spanish unit Compania Industrial y de Abastecimiento S.A.
(CINDASA) said.
    He told Reuters the sale price was around 28.95 pesetas per
kilo but that the final quantity and delivery date has not yet
been set. The corn will be shipped in the coming days from
Valencia.
    He said CINDASA will also ship 6,000 to 7,000 tonnes of
Spanish corn to Italy in the second half of this month.
    The CINDASA spokesman said other corn shipments this month
will include between 15,000 and 30,000 tonnes bound initially
for Rotterdam and Ghent and destined for unspecified northern
European countries. He said shipments of 35,000 to 50,000
tonnes of low specific gravity barley were also expected this
month and added that Greece, the Netherlands, Ireland and
Belgium were considering imports of Spanish flour for milling.
    Market sources said the corn exports, the absence of
imports from the rest of the EC and the delay in shipments of
corn from the U.S. Had pushed domestic corn prices up by around
0.25 pesetas a kilo today compared with yesterday.


.I 1843
.C
earn
.W
EAC INDUSTRIES INC <EAC> 4TH QTR OPER LOSS.
    CHICAGO, April 3 - Period ended Jan 31
    Oper shr loss 66 cts vs loss 1.29 dlrs
    Oper net loss 1,309,000 vs loss 2,522,000
    Sales 25.1 mln vs 19.9 mln
    Year
    Oper shr loss 65 cts vs loss 97 cts
    Oper net loss 1,287,000 vs loss 1,882,000
    Sales 113.4 mln vs 76.6 mln
    NOTE: Earnings exclude a loss on sale of discontinued
operations of 17,000 dlrs, or one ct a share vs a gain of
1,383,000 dlrs, or 70 cts a share in the quarter and gains of
300,000 dlrs, or 15 cts a share vs 1,941,000 dlrs, or 1.00 dlr
a share for the year


.I 1844
.C
reserves
.W
BUNDESBANK GROSS RESERVES RISE AT MARCH CLOSE.
    FRANKFURT, April 3 - The Bundesbank's gross currency
reserves rose 300 mln marks in the last week of March to 104.9
billion marks, the Bundesbank said in a statement.
    At the same time its foreign liabilities rose 100 mln to
22.8 billion, producing a rise in net reserves of 200 mln to
82.2 billion on March 31.
    The Bundesbank provided banks with liquidity in the fourth
March week by disbursing funds in the money market via
government-owned banks. Banks took up the Bundesbank's standing
offer of treasury bills to place excess liquidity.
    Banks received more liquidity through routine month-end
payments by public authorities as well as expansionary market
factors than was lost through the 2.3 billion mark rise in cash
in circulation to 122.3 billion, the Bundesbank said.
    But banks had to draw heavily on the Lombard emergency
financing facility due to month-end tightness, borrowing 5.3
billion marks.
    Overall, banks' holdings at the Bundesbank rose 10.2
billion marks to 58.5 billion at the end of the month,
averaging 50.9 billion in the whole of March.
    The minimum reserve requirement for March, before deduction
of banks' cash holdings, was set at 61 billion marks.
    Public authorities' net holdings at the Bundesbank fell to
2.2 billion marks in the last March week from 4.4 billion the
week before. The federal states' holdings fell 2.6 billion to
2.4 billion.
    The federal government's holdings rose 700 mln marks to 5.1
billion.


.I 1846
.C
dlr;money-fx;dmk;
.W
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES.
    ANKARA, April 3 - Turkey's Central Bank set a lira/dollar
rate for April 6 of 781.95/785.86 to the dollar, up from
782.50/786.41. It set a lira/D-mark rate of 430.15/432.30 to
the mark, down from 428.30/430.44.


.I 1847
.C
earn
.W
WESSANEN FORESEES STRONG PROFIT GROWTH.
    AMSTERDAM, April 3 - Dutch dairy and general foods
manufacturer Koninklijke Wessanen NV <WESS.AS>, said it is
planning further world-wide acquisitions and forsees strong
profit growth over the next 10 years.
     Company chairman Gerrit van Driel told journalists at the
presentation of Wessanen's 1986 report he already expected 1987
first quarter profits to show an increase.
    The company last month reported a 16 pct increase in 1986
net profits to 72.7 mln guilders, after 62.3 mln in 1985.
    This was achieved despite a 25 pct drop in the dollar's
guilder value, van Driel said.
    Van Driel said profits would have been nine mln guilders
higher if the US currency had remained at its average 1985
level of 3.20 guilders.
    Turnover, at 3.7 billion guilders in 1986, was 450 mln
guilders down because of the lower dollar and lower raw
material prices. Total 1985 turnover was 4.2 billion guilders.
    US activities accounted for 34 pct of 1986 turnover,
compared with 22 pct in 1982. Wessanen now has 15 separate
businesses in the US out of a total of 62 world-wide.
    Van Driel said the company would continue an active
takeover policy in the US, but would be wary about paying more
than its current price/earnings ratio of 17 times net profit.
    He added that Wessanen teams were seeking acquisition
possibilities in Brazil, Taiwan, Thailand and China.
    He said the company had an ample cashflow of 100 mln
guilders and would if necessary make new share issues.
    Van Driel said he expected a 1987 US turnover of 700 mln
dlrs. He said <Balanced Foods> and <Green's Dairy>, taken over
late last year, have a combined annual turnover of 126 mln dlrs
which was not included in the 1986 account.
    All sectors saw strong growth in 1986, resulting in a 13
pct increase in operating income to 120 mln guilders. Key to
this growth was the successful introduction of new products,
which were greatly enhanced by a number of consumer-oriented US
acquisitions, van Driel said.
    Consumer products represented 50 pct of total 1986
turnover, compared with 35 pct in 1982, van Driel said.
    The company, which is already listed on the London, Zurich,
Basle and Geneva stock exchanges as well as Amsterdam, aims to
be quoted in Frankfurt and Dusseldorf in May, van Driel said.
    Van Driel stressed that while these listings would not be
accompanied by new share issues, they provided easy vehicles
for the company to raise capital for future expansion.
    He estimated that 33 pct of the company's shares were in
foreign hands.
    The company's 1986 US turnover of about 750 mln dlrs made a
listing on one of the New York exchanges a logical next step,
van Driel said without elaborating.
    Despite EC dairy restrictions Wessanen, which produces
around 10 pct of all Dutch cheese, saw good growth prospects
for its dairy sector within Europe, van Driel said.


.I 1849
.C
interest
.W
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 3 - The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
    MATURITY   NEW RATE  OLD RATE  MATURITY
  30-273 days  5.00 pct  5.00 pct    30-89 days
 274-294 days  5.92 pct  5.83 pct   90-100 days
 295-344 days  5.00 pct  5.00 pct  101-181 days
 345-360 days  5.93 pct  5.82 pct  182-195 days
                         5.00 pct  196-274 days
                         5.90 pct  275-295 days
                         5.00 pct  296-360 days


.I 1851
.C
interest
.W
MONEY RATES - INTERNATIONAL SUMMARY - APR 3.
    U.S.
Fed funds               5-15/16
Broker loan             7.50-7.25
                  30        60        90
T-bills        5.40/38   5.40/38   5.44/43
Cds dir         5.95       6.00       6.00
Comm paper dir  6.15       6.15       6.09
    INTERNATIONAL
         CALL       1 MONTH          3 MONTH
Ldn  10    9-7/8     10   9-15/16   10    9-7/8Fft  3.60/70    
    3.80/90         3.85/95
Par     unav            unav            unav
Zur  7/8   1-1/8   3-1/8   1/4    3-1/2   5/8
Ams  5-5/16  7/16  5-3/8   1/2    5-3/8   1/2
Tok  3.7500  8125  3.8750  9375   4.0000   0625


.I 1852
.C
acq
.W
K MART <KM> SELLING KRESGE TO MCCRORY.
    TROY, MICH., April 3 - K mart Corp said it agreed to sell
most of the U.S. Kresge and Jupiter stores to McCrory Corp, a
subsidiary of privately held Rapid American Corp.
    It said the agreement covers 76 stores in 21 states
including inventory and fixtures. The price depends on the
amount of the inventory that will be in the stores on the
closing date.
    K mart said it will continue to operate the stores until
early June, when McCrory will take over with no interruption of
service.
    The newly acquired Kresge and Jupiter stores will be
renamed McCrory 5 and 10. McCrory currently operates 1,250
stores in 38 states.



.I 1854
.C
earn
.W
TANDY <TAN> 3RD QUARTER REVENUES UP 12 PCT.
    FORT WORTH, Texas, April 3 - Tandy Corp said consolidated
sales and operating revenues for the third quarter, ended March
31, totaled nearly 776.0 mln dlrs, up 12 pct from 693.4 mln
dlrs last year.
    The company said third quarter earnings will be released in
the latter part of April.
    Tandy said March sales and oprating revenues totaled 164.4
mln dlrs, up 11 pct from March 1986's 238.8 mln dlrs.
    It said U.S. retail operations revenues rose to 225.8 mln
dlrs last month from 202.7 mln dlrs a year earlier. Sales of
U.S. stores in existence more than one year increased 10 pct.


.I 1855
.C
earn
.W
PHILIP MORRIS <MO> UP ON RECOMMENDATIONS.
    NEW YORK, April 3 - The stock of Philip Morris Cos rose
today following recommendations by First Boston Corp and Morgan
Stanley and Co, traders said.
    Philip Morris gained 1-3/4 to 88-1/4.
    First Boston's analyst was unavailable for comment.
    Morgan Stanley's David Hill said he just assumed coverage
of Philip Morris and placed it on his recommended list becasue
of its attractive earnings growth and because the stock is
selling at a discount to the market based on Morgan's figures.
Hill expects Morris to earn 7.75 dlrs a share this year and
9.50 dlrs in 1988. In 1986, Morris earned 6.20 dlrs a share.


.I 1856
.C
wheat;grain;
.W
PAKISTAN NOT SEEN AS MAJOR WHEAT EXPORTER.
    ISLAMABAD, April 3 - Pakistan is not emerging as a major
wheat exporter as world market prospects are not good enough,
Sartaj Aziz, Special Assistant on Food and Agriculture to the
Pakistani Prime Minister, said in an interview.
    No exports are planned for the next 12 months or so and
plans last year to sell one mln tonnes to Iran came to nothing
because they could not agree a price, he said.
    Aziz forecast that Pakistan may have exportable surpluses
of one mln tonnes or a half mln tonnes over the next few
harvests in years when the weather is favourable.
    The government does not wish to increase output much above
this because of low world prices, and the land would be better
used for other crops.
    Aziz said the Pakistani government does not want area sown
to wheat to increase from the current seven mln hectares. Some
10 pct of that area which gives low yields could be switched to
more profitable crops such as oilseeds.
    The aim is to concentrate on raising yields from the
current 1.8 to 1.9 tonnes per ha to at least 2.5 tonnes per ha
over the next five to seven years, he said.
    Aziz said the current 1986/87 crop, harvesting of which is
just beginning, is expected to yield around a record 14.5 mln
tonnes. This compares with a target of 14.7 mln and last year's
yield of 14.0 mln.
    He said rains some six weeks ago helped the crop but more
recent rains reduced prospects slightly.
    The long-term wheat production target is for some 17 mln
tonnes by mid-1993, taking into account Pakistan's annual
population growth rate of more than three pct. Current
consumption is some 12.5 mln tonnes.
    The current wheat reserve is 2.5 mln tonnes, Aziz said.
This compares with a minimum reserve commitment of one mln
tonnes, which Pakistan will maintain at all costs, and a
"strategic reserve" target of two mln tonnes.
    Despite the fact that stocks are a half-mln tonnes over
target, the surplus will not be exported at present, he said.
    The government wants to keep an extra "safety margin" until
it sees what effect the abolition of a 44-year-old wheat
rationing system will have on domestic consumption. New exports
will be considered only in about a year's time when the 1987/88
crop can be gauged as well, he said.
    The new domestic policy, introduced on March 15, is for the
government to supply unlimited quantities of wheat at two
rupees per kilo. With other costs this means a price in
Pakistani markets of between 2.30 and 2.50 rupees per kilo.
    Under the old system, introduced during World War Two and
due to be phased out by April 15, some 50 mln ration cards were
issued enabling poor people to buy wheat cheaply.
    Aziz said following the introduction of a government
support price in the 1970s the system become so corrupted that
only 20 to 25 pct of subsidised wheat was actually reaching the
consumer, the rest being diverted illicitly to the mills.
    The ration system had also not had the stabilising effect
on the internal wheat market that was intended, Aziz said.
    Prices have already begun to fall with the introduction of
the new system. The wheat price in Karachi, the most expensive
Pakistani city, had dropped from 3.11 rupees per kilo on March
1 to 2.85 rupees on March 30.
    Aziz said he does not expect the change in system to have a
major effect on total consumption, but it may encourage better
use of side-products such as bran.


.I 1857
.C
acq
.W
KLEER-VU INDUSTRIES TO SELL COSMETICS UNIT.
    NEW YORK, APril 3 - <Kleer-Vu Industries> said the
company's board authorized the sale of its Neslemur Co, its
cosmetic and toiletries company.
    The company said it is evaluating two separate proposals
and will complete the sale within 10 days.


.I 1858
.C
acq
.W
MEMORY PROTECTION <MPDI> COMPLETES ACQUISITION.
    NEW YORK, April 3 - Memory Protection Devices Inc said it
completed its acquisition of the assets and liabilities of
Bogen, a division of <Lear/Siegler>, for 9,200,000 dlrs in
cash.
    Under the newly-structured company, Memory said it expects
to report consolidated sales of 18 mln dlrs to 20 mln dlrs and
should be profitable before allowing for extraordinary items
related to the acquisition.


.I 1859
.C
acq
.W
DU PONT <DD> TO SELL CLEVELAND PLANT.
    WILMINGTON, Del., April 3 - Du Pont Co said it agreed to
sell its Cleveland chemical plant, the oldest site currently
operated by the company, to two employees.
    Terms were not disclosed.
    Closing is expected in the second quarter, following
approval of definitive agreements.
    Products made at the plant represent less than 1/10 of one
pct of Du Pont's annual sales, it said. Quilon chrome complexes
and Volan bonding agents will be supplied by the plant to Du
Pont under contract.
    Established in 1866, the plant was acquired by Du Pont in
1928. The plant no longer fits the company's long-term
strategy, Du Pont said


.I 1860
.C
interest
.W
SPAIN RAISES CALL MONEY RATE TO 14.5 PCT.
    MADRID, April 3 - The Bank of Spain said it raised its rate
for overnight call money to 14.5 pct from 14 pct with immediate
effect at today's daily auction for assistance funds.
    The move followed comments yesterday by central bank
governor Mariano Rubio, who said money supply growth was too
fast.
    The bank said later that it was leaving its rate for
special assistance funds from its second window unchanged at 16
pct, surprising operators who had expected an increase there
too.


.I 1862
.C
earn
.W
FEDERAL CO <FFF> 3RD QTR FEB 28 NET.
    MEMPHIS, April 3 -
    Shr 1.00 dlr vs 34 cts
    Net 16.9 mln vs 5,696,000
    Revs 371.3 mln vs 303.2 mln
    Avg shrs 16.9 mln vs 16.3 mln
    Nine mths
    Shr 3.55 dlrs vs 1.66 dlrs
    Net 59.3 mln vs 27.1 mln
    Revs 1.02 billion vs 912.8 mln
    Avg shrs 16.7 mln vs 16.3 mln


.I 1866
.C
earn
.W
FLOWERS INDUSTRIES INC <FLO> HIKES PAYOUT.
    THOMASVILLE, Ga., April 3 -
    Qtly div 14-1/2 cts vs 14 cts prior
    Pay May 4
    Record April 17


.I 1867
.C
earn
.W
FINE ART ACQUISITIONS LTD <FAAA> 4TH QTR NET.
    NEW YORK, April 3 -
    Shr three cts vs three cts
    Net 141,224 vs 118,192
    Sales 5,849,695 vs 3,717,794
    Avg shrs 4,975,000 vs 4,925,000
    Year
    Shr 15 cts vs 10 cts
    Net 720,126 vs 474,879
    Sales 18.2 mln vs 11.5 mln
    Avg shrs 4,959,932 vs 4,902,778
    NOTE: 1985 year net includes gain of 58,000 dlrs, or one
cent a share, from tax loss carryforward


.I 1869
.C
acq
.W
GERBER <GEB> SETS DEADLINE FOR UNIT'S BUYOUT.
    FREMONT, MICH., April 3 - Gerber Products Co said it has
given management of its CWT Inc trucking subsidiary 60 days to
pursue a leveraged buyout of the subsidiary.
    It said CWT Inc, which has operations in the Midwest and
Southeast, has annual revenues of approximately 135 mln dlrs.


.I 1870
.C
earn
.W
<ANCHOR FINANCIAL CORP> 1ST QTR NET.
    MYRTLE BEACH, S.C., April 3 -
    Shr 31 cts vs 31 cts
    Net 226,000 vs 173,000
    Assets 73.1 mln vs 62.5 mln
    Deposits 54.6 mln vs 51.5 mln
    NOTE: earnings per share for 1987 affected by issuance of
166,750 shares of common stock in December 1986.


.I 1873
.C
earn
.W
TSR INC <TSRI> 3RD QTR FEB 28 NET.
    HAUPPAUGE, N.Y., April 3 -
    Shr seven cts vs four cts
    Net 161,000 vs 107,000
    Revs 5,852,000 vs 4,794,000
    Nine mths
    Shr 23 cts vs 24 cts
    Net 553,000 vs 610,000
    Revs 18.2 mln vs 14.2 mln


.I 1874
.C
acq
.W
TIME <TL> IN TALKS ON CABLE NEWS CONSORTIUM.
    NEW YORK, April 3 -  N.J. Nicholas Jr., president and chief
operating officer of Time Inc, told security analysts the
company is now engaged in talks to join a consortium of cable
companies that will invest in Cable News Network.
    Nicholas declined to give any details, but said an
announcement might be ready in a few days. He also declined to
say whether the investment would be made by Time Inc or
American Television and Communications Corp, a public company
in which Time owns a majority stake.
    Cable News Network is owned by Turner Broadcasting System
<TBS>.


.I 1876
.C
tea
.W
ABNORMAL RADIATION FOUND IN SOVIET TEA/HAZELNUTS.
    MOSCOW, April 3 - Abnormally high levels of radiation were
found in Soviet tea and hazelnuts more than nine months after
the Chernobyl nuclear accident, West German residents in Moscow
were advised this week.
    In a letter to the West German community here, Ambassador
Joerg Kastl said laboratory tests on food samples bought in
Moscow in February had shown elevated levels of caesium-134 and
-137 in tea from Azerbaijan and Ukrainian hazelnuts.
    Other food samples sent for testing at Cologne University,
including honey, fruit, vegetables, pork, milk and butter, were
found to be free of radiation, it said.
    Data in the letter showed the tea and hazelnuts contained
caesium levels far in excess of ceilings recommended by the
United Nations Food and Agriculture Organisation (FAO).
    The letter said people who had consumed the tea faced no
particular health danger as most of the caesium remained in the
tea leaves, but it warned against eating the hazelnuts.
    The products sent for testing were bought in state shops
and private farmers' markets in Moscow, it added. Other Western
embassies in Moscow said they had discontinued laboratory
testing of Soviet food late last year because no abnormal
radiation levels were detected.
    "We didn't find anything so we stopped doing it," a U.S.
Embassy spokesman said.
    A British spokesman said radiation-monitoring equipment
remained in the embassy waiting room for British residents in
Moscow who wanted to check their food, but laboratory tests had
not been conducted for several months.
    "Earlier we sent some food back to Britain as a
precautionary measure, but we stopped in the absence of any
alarming signals," he said. "If the tests had shown abnormal
readings, they would have been resumed."


.I 1877
.C
interest
.W
SALLIE MAE ADJUSTS SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 3 - The Student Loan Marketing
Association said its rates on short-term discount notes were as
follows:
    MATURITY   NEW RATE    OLD RATE  MATURITY
    5-14 days  5.65 pct    5.60 pct     5-14 days
   15-78 days  5.00 pct    5.00 pct    15-81 days
   79-85 days  5.83 pct    5.75 pct    82-88 days
  89-360 days  5.00 pct    5.00 pct   89-174 days
                           5.85 pct  175-180 days
                           5.00 pct  181-360 days


.I 1879
.C
copper
.W
CYPRUS LOWERS COPPER PRICE ONE CT TO 66 CTS.
    DENVER, April 3 - Cyprus Minerals Company said it is
decreasing its electrolytic copper cathode price by one cent  
to 66.0 cents a pound, effective immediately.


.I 1881
.C
interest
.W
FREDDIE MAC ADJUSTS SHORT-TERM DISCOUNT RATES.
    WASHINGTON, April 3 - The Federal Home Loan Mortgage Corp
adjusted the rates on its short-term discount notes as follows:
   MATURITY   RATE       OLD RATE  MATURITY
    31 days   5.95 pct   6.00 pct  32 days
  


.I 1883
.C
earn
.W
MAVERICK RESTAURANT CORP <MAVR> 4TH QTR LOSS.
    WICHITA, Kan., April 3 - Ended Jan 31
    Shr loss 50 cts vs loss one ct
    Net loss 2,475,739 vs loss 68,691
    Revs 3,689,770 vs 3,292,733
    Year
    Shr loss 50 cts vs loss two cts
    net loss 2,472,582 vs loss 112,936
    Revs 14.8 mln vs 13.2 mln
    NOTE: Current periods include charge of 2.25 mln dlrs or 45
cts for restaurant closings.


.I 1884
.C
earn
.W
GRAPHIC MEDIA INC <GMED> YEAR NET.
    FAIRFIELD, N.J., April 3 - Ended Jan 31
    Shr nine cts vs eight cts
    Net 246,000 vs 369,000
    Revs 20.4 mln vs 11.2 mln
    Avg shrs 2,123,000 vs 1,882,000
    NOTE: 1985 restated.


.I 1886
.C
earn
.W
TIME <TL> 1987 EARNINGS MAY BE 4.25 DLRS SHARE.
    NEW YORK, April 3 - Time Inc's chief financial officer,
Thayer Bigelow, told security analysts the company is
"comfortable" with Wall Street estimates that 1987 earnings
will be in a range of 3.75 dlrs to 4.25 dlrs per share.
    In 1986, Time reported earnings of 5.95 dlrs per share,
including a number of special items.
    Bigelow said in adjusting the 1986 results for the special
items and also removing the earnings of American Television and
Communications Corp <ATCMA>, Time earned 2.35 dlrs per share in
1986.
    Turner Broadcasting System Inc said the investment by the
cable consortium would be in Turner Broadcasting, not directly
in CNN. The consortium would infuse up to 550 mln dlrs in
Turner Broadcasting in return for a 35 pct equity interest.
    Ted Turner, Chairman, would retain a 51 pct interest, a
Turner Broadcasting spokesman said.
    Bigelow said the company is continuing its previously
announced 10 mln share repurchase program and has bought back
4.1 mln of its own shares. He said 700,000 shares were
purchased in the first quarter of 1987 at an average price of
81 dlrs per share.
    Bigelow said the company will always have a share buyback
program in place whenever it believes it is a better long-term
investment than starting or acquring a business. But he did not
give any specifics on further repurchases beyond the 10 mln
shares already announced.
   
    On the subject of acquisitions, Richard Munro, chairman and
chief executive said the company is not interested in investing
in over-the-air broadcasting, but continues to look at all
areas in which it is currently engaged.
    Munro said book publishing is an area that interested Time.
In 1986 the company purchased Scott and Foresman, its biggest
acquisition ever.
    N.J. Nicholas, president and chief operating officer, said
the company might be interested in a relatively small book
business.
    He said following the recent agreement for the sale of
Harper and Row to the News Corp Ltd <NWS>, "there may be pieces
that Murdoch doesn't want," referring to News Corp chairman
Rupert Murdoch.
    Asked if the company's SAMI business is for sale, Munro
said it is a "delicate subject", and "we're looking at all the
options." SAMI is a marketing information service for the food
industry. Published reports have stated it could be worth as
much as 500 mln dlrs.
   
    Bigelow said that Time's Home Box Office added  subscribers
last year and the trend is continuing in the first quarter of
1987. However, he said, HBO's results in the quarter will be
down slightly, but in the first quarter of 1986 there was a
special gain in the HBO unit.
    Nicholas said that HBO and Cinemax had combined subscriber
growth of 800,000 for last year.
    He also said the tax rate in 1987 will remain at just under
50 pct because of the repeal of investment tax credits and
higher state and local taxes. He said he sees a decrease in the
tax rate in 1988 of five or six percentage points.
    Munro said the company does not plan to increase its
dividend.
    Trygve Myhren, chairman and chief executive of American
Television and Communications, said the unit is looking at
getting involved in the home shopping video area. "It would be
foolish not to be a player there," he said.
    He said the company had talks with Home Shopping Network
Inc <HSN> prior to that company's public offering last year,
but nothing came of the talks.


.I 1888
.C
interest
.W
FHLBB CHANGES SHORT-TERM DISCOUNT NOTE RATES.
    WASHINGTON, April 3 - The Federal Home Loan Bank Board
adjusted the rates on its short-term discount notes as follows:
    MATURITY   NEW RATE  OLD RATE  MATURITY
  30-273 days  5.00 pct  5.00 pct   30-273 days
 274-294 days  5.90 pct  5.92 pct  274-294 days
 295-344 days  5.00 pct  5.00 pct  295-344 days
 345-360 days  5.93 pct  5.93 pct  345-360 days
                        


.I 1892
.C
money-fx;interest;
.W
FED EXPECTED TO TAKE NO MONEY MARKET ACTION.
    NEW YORK, April 3 - The Federal Reserve is expected to take
no reserve-management action in the U.S. Government securities
market during its usual intervention period, economists said.
    They said that, if the Fed does act, it will likely add
temporary reserves indirectly by arranging one to 1.5 billion
dlrs of customer repurchase agreements.
    Federal funds, which averaged 6.14 pct yesterday, opened at
5-15/16 pct and remained there in early trading. Analysts
believe this probably is about where the Fed wants the funds
rate to be.


.I 1893
.C
ship
.W
AGENCY REPORTS 30 SHIPS WAITING AT PANAMA CANAL.
    WASHINGTON, April 3 - The Panama Canal Commission, a U.S.
government agency, said in its daily operations report that
there was a backlog of 30 ships waiting to enter the canal
early today. Over the next two days it expects --              
             4/03  4/04
                       Due: 36    28
      Scheduled to Transit: 38    38
           End-Day Backlog: 28    18
    Average waiting time tomorrow --
         Super Tankers  Regular Vessels
 North End:  19 hrs       8 hrs
 South End:  20 hrs      16 hrs


.I 1898
.C
earn
.W
LAND'S END INC <LEYS> VOTES INITIAL PAYOUT.
    DODGEVILLE, WIS., APril 3 - Land's End Inc said its board
declared a dividend of 10 cts a share payable April 30, record
April 13.
    It is the company's first dividend since it became a public
entity last October.


.I 1902
.C
acq
.W
ALLWASTE <ALWS> TO ACQUIRE SERVICE FIRM.
    HOUSTON, April 3 - Allwaste Inc said it agreed in principle
to acquire all outstanding stock of a company in the industrial
service business for 1.98 mln dlrs in common stock.
    It did not identify the company to be acquired.


.I 1904
.C
heat
.W
GLOBAL RAISES HEAVY FUELS PRICES.
    New York, April 3 - global petroleum corp said today it
raised the posted cargo prices for number six fuel in the new
york harbor 20 cts to 1.45 dlrs a barrel, effective today.
    the increase brings the prices for one pct sulphur to 21.30
dlrs, up 20 cts; two pct sulphur 20.85 dlrs, up one dlr; 2.2
pct sulphur 20.50, up 1.25 dlrs, and 2.5 pct sulphur 20.25
dlrs, up 1.45 dlrs, it said.
    prices for 0.3 pct and 0.5 pct sulphur fuels were unchanged
at 22.50 and 21.85 dlrs respectively, the company said.


.I 1906
.C
acq
.W
SOO LINE <SOO> TO SELL LAKE STATES DIVISION.
    MINNEAPOLIS, April 3 - Soo Line Corp said it agreed to sell
its Lake States Transportation Division to the newly formed
Wisconsin Central Ltd.
    The division conducts rail operations over about 2,000
miles of railroad in Minnesota, Wisconsin, Michigan and
Illinois. Soo Line said in January it was seeking bids for the
property.
    Terms were withheld, but Soo has estimated that the
transaction will result in a one-time after-tax loss of 8.0 to
15.0 mln dlrs.


.I 1909
.C
crude
.W
BP SAYS NO PLANS TO CLOSE SWEDISH REFINERY.
    LONDON, April 2 - The British Petroleum Co Plc <BP.L> said
it had no plans to close its refinery in Gothenburg, despite
forecasts by a Swedish finance ministry committee that it might
be planning such a move.
    The committee said the refinery's future looked bleak
because the Swedish petroleum industry's competitiveness was
expected to worsen unless it invested, and because of the
effects of a possible tightening of rules on sulphur content.
    But BP said the unit, in which Sweden's <OK Petroleum AB>
has a 22 pct stake, had performed well both technically and
financially up to and including the first quarter of 1987.
    Current restrictions on sulphur emissions and known future
plans for both Sweden and export markets did not cause it any
serious problems, it said in a statement.
    The refinery started up in 1967 and has an annual capacity
of 4.7 mln tonnes.


.I 1912
.C
plywood
.W
USDA CORRECTS TURKEY CREDIT ANNOUNCEMENT.
    WASHINGTON, April 3 - The U.S. Agriculture Department said
an announcement by the department yesterday concerning 15.0 mln
dlrs in additional credit guarantees for exports of U.S.
commodities to Turkey contained two inaccuracies.
    First, the USDA said its announcement should not have said
that plywood was excluded from the additional three mln dlrs in
GSM-102 credit guarantees for lumber.
    The original announcement said the guarantees included
three mln dlrs for lumber, except plywood.
    Melvin Sims, USDA general sales manager, told Reuters he
did not anticipate any plywood would be included in the sales,
but that "it's possible it would be."
    Plywood in the past has not been eligible for GSM-102
credit guarantees because it is considered by some to be a
manufactured product. Members states of the Organization for
Economic Cooperation and Development have pledged not to offer
concessional credits on manufactured products, Sims said.
    However, the Reagan administration is considering whether
to allow plywood sales to be covered by the credit guarantee
program, Sims said.
    Second, the USDA announcement said 6.0 mln dlrs of a
previously announced 6.0-mln dlr line for tallow under GSM-102
was available for both public and private sector importers.
    In fact, the line of credit guarantees for tallow is
available only for public sector importers, Walter Stern,
Foreign Agricultural Service Turkey analyst, said.


.I 1917
.C
plywood
.W
PLYWOOD CREDITS EYED BY REAGAN ADMINISTRATION.
    WASHINGTON, April 3 - The Reagan administration is debating
whether to provide government credit guarantees for the export
of plywood, a U.S. Agriculture Department official said.
    As a member of the Organization for Economic Cooperation
and Development, OECD, the United States has agreed not to
provide any concessional credits on the export of manufactured
products.
    However, USDA General Sales Manager Melvin Sims told
Reuters the administration is considering allowing USDA to
provide its first export credit guarantees for plywood on the
grounds it is not a manufactured product.
    Sims said it was clear that wood products such as
furniture, tables and window frames would be considered
manufactured goods and therefore ineligible for export credit
guarantees. However, the case of plywood was less clear.
    "As long as it's a basic material, we consider it still just
a processed version of the basic agricultural commodity," Sims
said in a telephone interview.
    Earlier today, USDA said that plywood was eligible under an
export credit guarantee offer for Turkey announced yesterday.
In its original announcement yesterday, USDA had said the offer
included three mln dlrs for the export of lumber, excluding
plywood. However, Sims said he did not expect any plywood
exports to be including under the lumber guarantee offer.


.I 1918
.C
earn
.W
POPE AND TALBOT <POP> SEES HIGHER 1ST QTR NET.
    PORTLAND, Ore., April 3 - Pope and Talbot Inc said it
expects first quarter earnings to total about one dlr per
share, compared with a year-earlier loss of nine cts per share.
    Each of the company's business segments contributed to the
sharp improvement, Pope and Talbot said.
    The wood products company also said it expects to release
first quarter results later this month.


.I 1925
.C
acq
.W
STARS TO GO <STAR> GETS STORES, AGREEMENT.
    LOS ANGELES, April 3 - Stars to Go Inc said it completed
its acquisition of 650 video centers previously owned by CVS
International Inc and located in Circle K Corp <CKP> stores.
    In conjunction with the acquistion, Circle K also granted
it the exclusive right to install video cassette rental centers
in all existing 3,500 Circle K stores, as well as in future
stores, for a period of seven years, Stars to Go said.
    The company also said it currently has a total of 4,650
centers in operation and expects to increase the total to 6,000
by June 30.


.I 1928
.C
rubber
.W
POLYSAR IN JOINT VENTURE ON FINLAND LATEX PLANT.
    SARNIA, Ontario, April 3 - Polysar Ltd, wholly owned by
<Canada Development Corp>, said it agreed to form a joint
venture with Raision Tehtaat, of Finland, to build a synthetic
rubber latex plant in southern Finland.
    Project cost and plant capacity were not disclosed.
    The joint venture, to be 51 pct owned by Raision Tehtaat
and 49 pct by Polysar, will build a plant at Anjalankoski, east
of Helsinki, to produce carboxylated styrene-butadiene latex.
    The plant's production will be used by Finland's paper
industry for making coated paper and paper board products.


.I 1931
.C
earn
.W
STERLING DRUG INC <STY> INCREASES PAYOUT.
    NEW YORK, April 3-
    Qtrly div 38 cts vs 33 cts
    Pay June 1
    Record May 7
    NOTE: company said this is the largest dividend increase in
15 years.


.I 1932
.C
gold
.W
CAMPBELL'S <CCH> MESTON LAKE SETS GOLD TARGETS.
    MONTREAL, April 3 - <Meston Lake Resources Inc>, 65.3 pct
owned by Campbell Resources Inc, said it will begin commercial
output at its Joe Mann mine in the Chibougamu area of Quebec at
an initial daily rate of 500 short tons of ore grading 0.15
ounce of gold per ton.
    It said it will improve throughput to 700 tons a day at
0.221 ounce of gold per ton.
    Meston said current ore reserves at the property total
910,000 tons grading 0.211 ounces of gold per ton and 0.3 pct
copper, but it may be able to develop "substantially greater
tonnage."
  
    Meston said underground drilling below current developed
reserves has intersected the main zone 200 feet below the
bottom level, with the average grade assayed at 0.530 ounce of
gold per ton over true width of 17 feet.
    A recent drillhole, east of the current shaft and 600 feet
from the reserve boundary, intersected three zones grading,
respectively, 0.708 ounce per ton over 5.4 feet at depth of 650
feet, 0.706 ounce over seven feet at depth of 765 feet and
0.418 ounce over one foot at depth of 1,000 feet. A second
surface hole, 500 feet farther east, intersected 1.068 ounce
per ton over 5.3 feet.


.I 1934
.C
acq
.W
WARBURG PINCUS DECLINES TO UP SYMBION <SYMB> BID.
    WASHINGTON, April 3 - Warburg, Pincus Capital Co L.P., an
investment partnership, said it told representatives of Symbion
Inc it would not increase the 3.50-dlr-per-share cash price it
has offered for the company.
    In a filing with the Securities and Exchange Commission,
Warburg Pincus said one of its top executives, Rodman Moorhead,
who is also a Symbion director, met April 1 with Symbion's
financial advisor, L.F. Rothschild, Unterberg, Towbin Inc.
    In a discussion of the offer, Warburg Pincus said Moorhead
told the meeting there are no plans to raise the 3.50 dlr bid.
    Moorhead told the Rothschild officials that Warburg Pincus
considers the offered price to be a fair one, Warburg Pincus
said.
    Last Month Warburg Pincus launched a tender offer to buy up
to 2.5 mln Symbion common shares.


.I 1938
.C
cotton
.W
NEW YORK FUTURES EXCHANGE TO RELOCATE.
    NEW YORK, April 3 - Lewis Horowitz, president of the New
York Futures Exchange, said the New York Stock Exchange board
yesterday approved in principle an agreement to relocate the
futures exchange at the New York Cotton Exchange.
    The agreement is subject to the approval of the Cotton
Exchange board, which meets Tuesday, April 7.


.I 1940
.C
wheat;grain;
.W
EC WHEAT RELEASE UNLIKELY TO SATISFY U.K. DEMAND.
    By Kenneth Brettell, Reuters
    LONDON, April 3 - The European Commission's decision to
release an additional 300,000 tonnes of British intervention
feed wheat for the home market will provide only moderate
relief in an increasingly tight market, traders said.
    Some operators had been anticipating a larger tonnage,
pointing out that at this week's U.K. Intervention tender the
market sought to buy 340,000 tonnes but only 126,000 tonnes
were granted.
    The new tranche of intervention grain is unlikely to
satisfy demand, they said, and keen buying competition for
supplies in stores is expected to keep prices firm.
    The release of the feed wheat followed recent strong
representations by the U.K. Grain trade to the Commission.
There has been growing concern that rising internal prices,
triggered by heavy exports, were creating areas of shortage in
interior markets.
    The latest EC authorisation will add 70,000 tonnes at the
April 14 tender and a further 30,000 tonnes later in the month.
The remaining 200,000 tonnes will be made available in May and
June.
    News of the release produced an early downward reaction in
local physical markets, but by midday some sections had halved
early two stg losses while others were unchanged.
    Ministry of Agriculture figures for March indicate 1.85 mln
tonnes of wheat and 1.74 mln tonnes of barley remain in the
free market. However, some traders believe these figures are
overstated and, while some may still be held on the farm, the
bulk of wheat is already sold. Some of the grain is also off
the market in futures stores.
    A total of 2.10 mln tonnes of intervention wheat has been
sold for export or to the home market since the season started
July 1, leaving an unsold balance in intervention of about 1.59
mln tonnes.
    Intervention barley sales have reached just over 1.0 mln
tonnes, leaving about 753,000 tonnes, traders said.
    This season's U.K. Export performance has surpassed all
early expectations and has created the present nervous
situation in domestic markets where the fear now is free market
supplies may not last out until new crop becomes available in
August.
    The market is sticking to its recent prediction of total
barley and wheat exports of around 10.5 mln tonnes, a new
record and nearly double the previous record of 5.9 mln tonnes
achieved in the 1984/85 season.
    Traders expect U.K. Wheat exports to reach 6.0 mln and
barley around 4.50 mln tonnes.
    The Soviet Union has booked a record total of 2.5 mln
tonnes of British wheat and barley this season, but only 1.28
mln had surfaced in Customs export figures by March 25, traders
said.
    Other EC countries have bought large amounts of British
grain and for the July 1/March 25 period had taken 2.59 mln
tonnes of wheat and 2.06 mln tonnes of barley. This compares
with 1.28 mln and 868,700 tonnes last season.
    The market is expecting prices, particularly wheat, to stay
buoyant for the remaining few months of the season. If supplies
become more difficult and prices strengthen further, feed
compounders may increase cereal substitute usage, traders said.


.I 1942
.C
acq
.W
CALIFORNIA FIRM HAS FIVE PCT OF MODULAIRE <MODX>.
    WASHINGTON, April 3 - PBS Building Systems of America Inc,
an Anaheim, Calif., company, told the Securities and Exchange
Commission it has acquired 150,000 shares of Modulaire
Industries, or 5.0 pct of the total outstanding common stock.
    PBS, whose subsidiaries design, make, sell and lease
nonresidential relocatable modular buildings, said it bought
the stake for 855,768.75 dlrs "to acquire an equity interest in
Modulaire, while it evaluates Modulaire."
    Depending on several factors, PBS said it may decide to buy
additional Modulaire common shares.
                                


.I 1943
.C
acq
.W
BOISE CASCADE <BCC> COMPLETES SALE OF UNIT.
    BOISE, Idaho, April 3 - Boise Cascade Corp said it
completed the previously announced sale of its Consumer
Packaging Division to Sonoco Products Co <SONO> for
approximately 175 mln dlrs.


.I 1947
.C
earn
.W
KENTUCKY CENTRAL TO DECLARE STOCK DIVIDEND.
    LEXINGTON, Ky, April 3 - Kentucky Central Life INsurance Co
said the company said it will declare a 200 pct stock dividend
on Monday.
    Accordingly, it said it filed a registration statement with
the Securities and Exchange COmmission for a proposed offering
of three mln shares of its class a non-voting common stock,
which reflects the anticipated dividend.
    Proceeds will be used for general purposes.


.I 1949
.C
copper
.W
CHILE, CHINA TO ESTABLISH PEKING COPPER PLANT.
    LONDON, April 3 - The Chilean state copper corporation,
Codelco, the privately-owned Chilean copper fabricator Madeco
and Chinese interests are to establish a copper tube plant in
Peking, Codelco's U.K. Subsidiary Chile Copper Ltd said.
    The plant is designed to produce 5,000 tonnes in the first
five years and 8,000 tonnes as from year six. Total investment
is estimated at 10 mln dlrs, of which the Chileans will
contribute two mln.
    Codelco and Madeco have formed the Chilean Wrought Copper
Company to take a 50 pct stake in a new company called Peking
Santiago Tube Company with the Chinese holding the other half.


.I 1950
.C
acq
.W
ALLIED-SIGNAL <ALD> TO SELL ELECTRONICS UNIT.
    MORRIS TOWNSHIP, N.J., April 3 - Allied-Signal Inc said it
agreed to sell its Amphenol Products unit to a subsidiary of
LPL Investments Group <LPLI>, a Wallingford, Conn., investment
company, for 430 mln dlrs cash.
    Closing is expected soon, pending appropriate approvals,
the company said. LPL indicated that at closing, warrants will
be sold which, when exercised, will reduce its stake in the
subsidiary, Amphenol Acquisition Co, to 60 pct, the company
said.
    Lisle, Ill.-based Amphenol had 1986 sales of about 500 mln
dlrs. It makes brand name interconnection products.
    LPL also said Merrill Lynch and Co has committed to buy 175
mln dlrs of subordinated and preferred debt in the new LPL
unit, according to Allied-Signal. Canadian Imperial Bank of
Commerce has committed up to 340 mln dlrs in senior debt
financing, it said.
    Allied-Signal said in December it was offering for sale
Amphenol and six other operating units in its electronics and
instrumentation sector.
    Merrill Lynch, Needham and Co and Lazard Freres served as
financial advisors, it said.


.I 1951
.C
oilseed;rapeseed;
.W
JAPANESE CRUSHERS BUY CANADIAN RAPESEED.
    WINNIPEG, April 3 - Japanese crushers bought 4,000 to 5,000
tonnes of Canadian rapeseed in export business overnight for
May shipment, trade sources said.


.I 1955
.C
gnp;bop;
.W
PORTUGAL'S GDP FORECAST TO GROW FOUR PCT THIS YEAR.
    LISBON, April 3 - Portugal's Gross Domestic Product (GDP)
will grow around four pct this year, the same rate as in 1986,
according to a Bank of Portugal forecast.
    Total investment this year, the country's second as a
member of the European Community (EC), will rise nearly 10 pct,
again the same rate as last year, the central bank study said.
    It added that Portugal's current account was forecast to
show a surplus of 400 mln dlrs this year compared with 1.13
billion in 1986 and 369 mln the previous year.
    Last year's high surplus was attributed to cheaper oil and
raw materials, lower world interest rates and a weaker dollar.
    Imports by volume were forecast to grow 10 pct this year
and exports four pct compared with increases of 16.5 pct and
6.6 pct respectively in 1986, the bank said.
    The forecasts were calculated on the assumption that the
non-expansionary monetary policy carried out by the current
government would be maintained, particularly in budget spending
and income and in wage policy.
    The bank added that the 1987 forecasts were also based on
the assumption that the international economic situation and
Portugal's world trade relations would remain more or less the
same as in 1986.
    The central bank said the high rate of investment estimated
for 1986 was due to government policies and to increasing
optimism among firms whose financial situation had improved
since 1985. This tendency was expected to continue this year,
especially in the construction and public works sectors.
    Financial aid from the EC had also helped to boost
investment last year, the bank said.


.I 1956
.C
gold
.W
ASAMERA <ASM> TO FORM NEW MINING UNIT.
    CALGARY, Alberta, April 3 - Asamera Inc said it will
transfer all its mineral interests into a new wholly owned
subsidiary, Asamera Minerals Inc, which will later issue up to
15 pct of its shares to the public.
    The mineral interests will include Asamera's 51 pct
interest in the Cannon gold mine in Wenatchee, Wash. Asamera
said the mine produced 116,514 ounces of gold in 1986 and is
expected to produce 130,000 to 140,000 ounces this year.
    Asamera said its talks with Breakwater Resources Ltd
<BWRLF> on a possible merger of mining interests, including the
Cannon mine, have been terminated. It did not elaborate.
     
    Asamera said holding all its mineral properties in a
separate company will give better and more direct recognition
to the value of the assets.
    Its other mining interests include gold exploration
prospects on 13,000 acres in Inyo County, Calif., and 500,000
acres in Canada's Northwest Territories, the Gooseberry gold
and silver mine in Nevada, chromite properties in northern
California and Newfoundland, and a platinum prospect in the
Rankin Inlet, Northwest Territories.
                                                               
        


.I 1957
.C
acq
.W
OCCIDENTAL <OXY> UNIT SELLS DIVISION.
    DARIEN, Conn, APril 3 - Occidental Petroleum Corp's
Occidental Chemcial Corp said it sold the Process chemicals
division it acquired as part of the September 1986  purchase of
Diamond Shamrock Chemicals to Henkel KGAA of Dusseldorf, West
Germany.
    Terms were not disclosed.
    The division makes specialty industrial chemicals, it said.
    Later, industry sources said the division, which had
worldwide sales of some 160 mln dlrs last year, was sold for
just under 200 mln dlrs.


.I 1961
.C
copper
.W
NORANDA MINE SEEN BELOW FULL OUTPUT FOR MONTHS.
    MURDOCHVILLE, Quebec, April 3 - Noranda Inc said production
will remain shut down at its fire-damaged copper mine here
until it can completely examine the mine.
    If it decides to keep the mine open it would take four or
five months before it could resume full production.
    Company spokesman Dale Coffin said the investigation could
take from a few days to several weeks but would not be more
specific.
    Noranda said when it resumes production it plans to operate
the mine at about one-third of the normal 72,000 tonnes annual
finished capacity.
    The fire, which started Wednesday and burned itself out
late yesterday weakened part of the mine's support structure,
Coffin said.
    One miner was killed and 56 others were trapped underground
for about 24 hours before being brought safely out.


.I 1964
.C
acq
.W
U.K. FIRM UPS ITALY FUND <ITA> STAKE TO 12 PCT.
    WASHINGTON, April 3 - Lloyds Investment Managers Ltd, a
London-based investment firm, said it raised it stake in Italy
Fund to 760,500 shares, or 12.0 pct of the total outstanding
common stock, from 466,000 shares, or 7.4 pct.
    In a filing with the Securities and Exchange Commission,
Lloyds said it bought the additional 294,500 Italy Fund common
shares since November 7 for a total of 3.3 mln dlrs. Another
70,000 shares of the stake are held by an affiliate, it said.
    It said its dealings in Italy Fund stock are for investment
purposes only and that it has no current plans to increase or
decrease its current stake.


.I 1965
.C
acq
.W
INVESTOR HAS FIVE PCT OF SAGE DRILLING <SAGE>.
    WASHINGTON, April 3 - Arthur Appleton, a Chicago investor,
told the Securities and Exchange Commission he has acquired
39,000 shares of Sage Drilling Co Inc, or 5.1 pct of the total
outstanding common stock.
    Appleton said he bought the stock for 116,554 dlrs for
investment purposes.
    Depending on several circumstances, Appleton said he may
buy more Sage common shares, or sell some or all of his current
stake.


.I 1972
.C
copper
.W
NORANDA SETS TEMPORARY MINE SHUTDOWN.
    Murdochville, Quebec, April 3 - <Noranda Inc> said
production will remain shut down at its fire-damaged copper
mine here until it can completely examine the mine.
    The fire, which started Wednesday and burned itself out
late yesterday, killed one miner and trapped 56 others
underground for about 24 hours. The 56 were eventually brought
safely out of the mine.
    Company spokesman Dale Coffin said the investigation could
take from a few days to several weeks, but would not be more
specific.
    Noranda said that, when it resumes production, it plans to
operate the mine at about one-third of the normal 72,000 metric
tons annual finished capacity.
    The fire weakened part of the mine's support structure,
Coffin said.
    Noranda said if it decides to keep the mine open, it would
take four or five months before it could resume full
production.


.I 1974
.C
acq
.W
CIS TECHNOLOGIES<CIH> TO SELL SHARES TO SWISS CO.
    TULSA, Okla, April 3 - CIS Technologies Inc said it
executed a formal share purchase agreement with Swiss
Reinsurance Co of Zurich, Switzerland.
    Under terms of the agreement, Swiss Re will acquire 5.5 mln
newly issued CIS stock at 2.50 dlrs a share, or 13.8 mln dlrs.
This purchase represents 30 pct of the outstanding shares.
    Swiss Re will acuqire 500,000 of the shares immediately and
remaining shares will be bought after a due diligence report is
completed by auditors.
    The transaction is expected to be complete by June 11.


.I 1975
.C
earn
.W
COPLEY PROPERTIES INC <COP> INCREASES DIVIDEND.
    BOSTON, Mass, APril 3 -
    Qtly div 42 cts vs 41.5 cts prior
    Payable APril 28
    Record April 14


.I 1976
.C
cpi
.W
COLOMBIAN INFLATION STABLE AT AROUND 20 PCT.
    BOGOTA, April 3 - Colombia's cost of living index rose 2.71
pct in March, after a 2.03 pct increase in February and a 2.21
pct rise in March 1986, the government statistics institute
said.
    The result brought year-on-year inflation to 20.36 pct
compared with 22.65 pct at end-March 1986 and 19.77 pct for the
year ending February 1987.
    The government has predicted that inflation this year would
be slightly lower than in 1986 when it reached 20.9 pct.


.I 1977
.C
interest
.W
FHLBB SAYS MORTGAGE RATES CONTINUE DECLINE.
    WASHINGTON, April 3 - The Federal Home Loan Bank Board said
home mortgage rates fell from early February to early March to
their lowest point in nine years, but the rate of decline was
slower than it had been in recent months.
    The bank board said the average effective commitment rate
for fixed-rate mortgages for single family homes and a 25 pct
loan-to-price ratio with a maturity of at least 15 years was
9.48 pct in early March.
    The rate was four basis points lower than a month ago, only
one-eighth the size of decline in the previous month, the bank
board said.
    Rates for adjustable-rate mortgages decline eight basis
points from early February to 8.43 pct in early March, the bank
board said. The drop was far less than the 15 basis point
decline in the previous period, the agency said.
    The average effective interest rate on all loans closed by
major mortgage lenders declined nine basis points from early
February to early March, the agency said. The fall brought the
rate to 9.14 pct was the lowest since December 1977, it said.
    The effective rate for ARMS was 8.39 pct, 15 basis points
below a month earlier. For fixed-rate loans it was 9.36 pct, 14
basis points below a month earlier, the agency said.


.I 1979
.C
money-supply
.W
******CANADIAN MONEY SUPPLY M-1 FALLS 291 MLN DLRS IN WEEK, BANK OF CANADA SAID.
Blah blah blah.

.I 1980
.C
acq
.W
BENEFICIAL <BNL> UNIT SALE APPROVED.
    NEW YORK, April 3 - Beneficial Corp said the sale of its
American Centennial Insurance Co subsidiary to <First Delaware
Holdings Inc> was approved by the Delaware Insurance
Department.
    Under the transaction, American Centennial will receive a
cash infusion of 200 mln dlrs, including the settlement of tax
sharing agreements with Beneficial Corp, Beneficial said.
    It will also receive 25 mln dlrs from Beneficial
International Insurance Co, another Beneficial subsidiary being
purchased by the management-led group of First Delaware, the
company said.


.I 1983
.C
earn
.W
<ITT CANADA LTD> YEAR NET.
    TORONTO, April 3 -
    Shr 5.56 dlrs vs 3.88 dlrs
    Net 47.5 mln vs 33.2 mln
    Revs 254.5 mln vs 243.5 mln
    Note: shr after preferred dividends
    ITT Corp <ITT> owns 100 pct of ITT Canada common shares


.I 1988
.C
money-supply
.W
CANADIAN MONEY SUPPLY FALLS IN WEEK.
    OTTAWA, April 3 - Canadian narrowly-defined money supply
M-1 fell 291 mln dlrs to 32.44 billion dlrs in the week ended
March 25, Bank of Canada said.
    M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, fell 7 mln dlrs to 75.14 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposits, fell 56 mln dlrs to 177.54 billion dlrs.
    M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, rose 321 mln dlrs to 216.67 billion dlrs.
    Chartered bank general loans outstanding fell 169 mln dlrs
to 126.03 billion dlrs.
    Canadian liquid plus short term assets rose 72 mln dlrs to
36.47 billion dlrs and total Canadian dollar major assets of
the chartered banks rose 507 mln dlrs to 224.22 billion dlrs.
    Chartered bank net foreign currency assets fell 231 mln
dlrs to minus 2.00 billion dlrs.             
    Notes in circulation totalled 16.16 billion dlrs, up 50 mln
dlrs from the week before.
    Government cash balances fell 1.17 billion dlrs to 4.63
billion dlrs in week ended April 1.
    Government securities outstanding rose 1.09 billion dlrs to
226.42 billion dlrs in week ended April 1, treasury bills rose
1.35 billion dlrs to 76.95 billion dlrs and Canada Savings
Bonds fell 47 mln dlrs to 43.87 billion dlrs.         


.I 1990
.C
acq
.W
UNION TO PROTEST DART'S SUPERMARKETS <SGL> BID.
    LANDOVER, MD., April 3 - The United Food And Commercial
Workers said that more than 1,000 rank-and-file members of the
union will demonstrate Monday at Dart Group Corp's headquarters
protesting Dart's proposed 1.73 billion dlr takover of
Supermarkets General <SGL>.
    Supermarkets is best known for its Pathmark chain of
supermarket drug stores in the New York and New Jersey area and
also owns Rickels home centers.
    The union said that it is firmly against the Dart bid
because "workers have always ended up with a raw deal in the
current takeover mania."
    A Union statement said: "We do not intend to allow our
members to pick up the tab for Supermarket General's executives
and the bankers or the Dart Group who stand to make millions."
    Dart is controlled by the Haft family of Washington, which
last year made a bid for California-based Safeway Stores Inc.
The Hafts lost, but walked away with at least 100 mln dlrs in
profits, analysts estimate.
    The union said that Dart's Safeway bid forced a major
restructuring at Safeway to pay the Hafts and their lawyers and
caused a loss of thousands of jobs.


.I 1992
.C
acq
.W
FCS LABORATORIES <FCSI> TERMINATES DEAL TALKS.
    TEMPE, Ariz., April 3 - FCS Laboratories Inc said merger
discussions with an unnamed privately-held company in the
health care field have ended without an agreement.
    The previously announced negotiations began last August,
the company said.
    "It's disappointing to spend so much time on these
negotiations and have them fail," said FCS chairman Nicholas
Gallo III. "But the discussions could not produce a deal
acceptable to our board in the context of the company's
stronger financial position today as compared to six months
ago."
    Gallo said FCS will stop actively seeking potential merger
partners, but will respond to serious inquiries.
    "We are determined to follow our plan to restore this
company to profitability," he said. "To continue actively
searching for potential acquirers inherently forces us to
postpone the implementation of critical decisions which are
part of the plan."
    The company, which has 4,475,930 common shares outstanding,
reaffirmed it expects to be profitable in the second half of
the fiscal year ending September 30, 1987.


.I 1993
.C
interest
.W
WHITE HOUSE SAYS INTEREST RATES REFLECT MARKET.
    WASHINGTON, April 3 - The White House said the rise in
interest rates was "unfortunate in a general sense" but reflected
market forces.
    "There's always movement up and down and the basic fact is
that we believe the economy is strong and growing and there
will always be fluctuations in the interest rate, but the
economy is sound and in good shape," spokesman Marlin Fitzwater
said.
    Citibank raised its prime rate by one quarter of a point
and the move was followed by other banks.


.I 1994
.C
earn
.W
REGAL PETROLEUM LTD <RPLO> YEAR.
    THE WOODLANDS, TExas, April 3 -
    Shr loss nine cts
    Net loss 1.4 mln
    Revs 630,118 dlrs
    NOTE:Due to change in fiscal year, prior 4th qth and year
cannot be presented on comparable basis. 1986 loss includes
writedowns approximating 1.4 mln dlrs.


.I 1995
.C
earn
.W
CANTERBURY PRESS INC YEAR NOV 30.
    MEDFORD, N.J., April 3 -
    Shr 1.1 cts vs 1.7 cts
    Net 26,708 vs 35,084
    Revs 447,548 vs 243,161
    NOTE:1986 net includes 4,300 dlrs gain from tax credit and
1985 includes gain of 8,300 dlrs gain from credit.


.I 1996
.C
earn
.W
GRAPHIC MEDIA INC <GMED> YEAR.
    FAIRFIELD, N.J., April 3 -
    Shr nine cts vs 19 cts
    Net 188,000 vs 362,000
    Revs 20.4 mln vs 11.3 mln
    NOTE:1985 restated for reversal of certain tax benefits.
1986 and 1985 reflects preferred stock dividend requirements.


.I 2000
.C
earn
.W
RICHARDSON ELECTRONICS <RELL> 3RD QTR FEB 28 NET.
    LaFox, Ill., April 3 -
    Shr 20 cts vs 20 cts
    Net 1,981,000 vs 1,689,000
    Rev 24.7 mln vs 19.6 mln
    Nine months
    Shr 59 cts vs 53 cts
    Net 5,855,000 vs 4,360,000
    Rev 70.9 mln vs 51.9 mln
    NOTE: Fiscal 1986 per share data reflects dilutive effect
of shares issued for April 1986 convertible debenture
conversion. Company's full name is Richarson Electronics Ltd.


.I 2001
.C
earn
.W
DIVERSIFIED HUMAN RESROUCES GROUP <HIRE> YEAR.
    DALLAS, APril 3 -
    Shr loss five cts vs profit 72 cts
    Net loss 79,069 vs profit 829,737
    Revs 14.4 mln vs 14.1 mln
    NOTE:1985 includes extraordainy credit of 11 cts.


.I 2005
.C
acq
.W
MID-STATE <MSSL>, FIRST FEDERAL IN DEAL.
    OCALA, Fla, April 3 - Mid-State Federal Savings and Loan
Association said it and First Federal Savings and Loan
Association of Brooksville <FFBV> reached a definitive merger
agreement.
    As previously announced, Brooksville shareholders will get
cash and stock in exchange for their shares. The transaction is
expected to be completed during the summer 1987.


.I 2006
.C
acq
.W
MEMOTEC DATA COMPLETES TELEGLOBE ACQUISITION.
    MONTREAL, April 3 - <Memotec Data Inc> said it completed
the previously announced 488.3 mln dlr acquisition of Teleglobe
Canada from the federal government.
    Memotec Data said Teleglobe, which has provided Canada's
overseas telecommunications services since 1950, now becomes
Teleglobe Canada Inc, a unit of Memotec.
    Teleglobe president and chief executive Jean-Claude Delorme
will continue in the same post, the company said.
    In addition to the sale price, the government will receive
Teleglobe's accumulated cash of 102 mln dlrs and a special 18
mln dlr dividend, making total proceeds 608.3 mln dlrs.


.I 2008
.C
trade
.W
U.S., JAPANESE OPEN TALKS ON SEMICONDUCTORS.
    WASHINGTON, April 5 - U.S. and Japanese officials meet
tomorrow to try to settle a dispute over semiconductor trade
and to cut short the 300 mln dlr penalty tariffs President
Reagan has ordered imposed on Japanese exports.
    But U.S. officials held out little hope that any accord
could be reached before the tariffs of 100 per cent - up from
about five per cent - are to take effect on April 17.
    The Customs Bureau last week started to levy a bond on the
Japanese goods that Reagan ordered penalized. The penalties
would be retroactive to March 31.
    Reagan said on March 27 when ordering the tariffs that he
hoped the Japanese would soon end their unfair practices in
semiconductor trade and that sanctions could be lifted.
    Technical meetings are to be held today and tomorrow, with
meetings at a more senior level scheduled for Thursday and
Friday. Public hearings on the sanctions are set for April 13.
    The Japanese aides here for the technical talks include
Shigeru Muraoka, director-general of international trade policy
of the Ministry of International Trade and Industry (MITI), and
Masashi Yamamoto, deputy director-general of the information
and machinery bureau.
    Meeting with them will Glen Fukushima, director of the
Japan office of the U.S. Trade Representative's Office, and Jim
Gradoville, of trade representative's office of industry and
services.
    The two sides in the Thursday and Friday talks will be
headed by Deputy U.S. Trade Representative Michael Smith and
MITI vice minister Makoto Kuroda.
   


.I 2010
.C
acq
.W
AMERON <AMN> ADOPTS SHAREHOLDER RIGHTS PLAN.
    MONTEREY PARK, Calif., April 3 - Ameron Inc said its board
adopted a rights plan designed to protect shareholders from
potentially unfair takeover tactics.
    The plan calls for distribution of one right for each of
its outstanding common shares and each right entitles the
holder to buy one/one-hundredth of a share of newly authorized
Series A Junior Participating cumulative Preferred stock at an
exercise price of 55 dlrs, Ameron said.
    It said the rights are exercisable if a group acquires 20
pct or more of its common stock or announces a tender offer for
30 pct or more of its shares.


.I 2012
.C
acq
.W
FCS LABORATORIES <FCSI> ENDS MERGER TALKS.
    TEMPE, Ariz., April 3 - FCS Laboratories said its merger
talks with another unidentified company in the health care
field ended without agreement.
    The talks began last August, the company said.
    The company also said it will no longer actively seek out
potential merger partners, but will respond to serious
inquiries.


.I 2014
.C
trade
.W
UK MINISTER LOOKS TO EASE TENSION WITH JAPAN.
    LONDON, April 3 - The U.K. government hopes for a
breakthrough on the deadlock with Japan over trade policies
during next week's visit to Tokyo by Corporate Affairs Minister
Michael Howard, political sources said.
    Howard, who leaves for Japan tomorrow, told Reuters he will
try to promote understanding on trade issues during his visit.
    Meanwhile, Britain will re-examine a letter from Japanese
Prime Minister Yasuhiro Nakasone promising personal help in
solving the row over a U.K. firm's bid to win a significant
role in Japan's telecommunications market, government sources
said.
    Tensions have risen following Britain's decision to arm
itself early with new statutory powers which it says could be
used against certain Japanese financial institutions.
    Britain reacted optimistically at first to the letter from
Nakasone to Prime Minister Margaret Thatcher, seeing it as a
signal that he would work towards ensuring a satisfactory
outcome to the bid launched by Cable and Wireless Plc,
government officials said.
    But this view has since been clouded by reports from Tokyo
that Nakasone's assurances really constituted little more than
politeness in the face of British anger, they added.


.I 2015
.C
trade
.W
CONABLE WARNS PROTECTIONISM MIGHT SPREAD.
    By Alver Carlson, Reuters
    WASHINGTON, April 3 - World Bank President Barber Conable
expressed concern that trade protectionism, at the heart of a
new showdown between the United States and Japan, might spread
throughout the industrial world.
    But in an interview with Reuters, Conable said the action
by the United States to slap tariffs on certain electronic
goods from Japan did not mean the countries were heading for a
full-scale trade war.
    Conable said the World Bank has been pressing developing
countries to open their markets, arguing that a free trading
environment increased the possibility of global economic
growth.
    "We have, in fact, been making adjustment loans to many
countries in the developing world which have encouraged the
opening of their markets and we want to be sure that the
developed world doesn't close at the same time," he said.
    He said the U.S. action against Japan was "a significant
retaliatory step but it did not constitute a basic change in
trade policy."
    The interview came just before next week's semi-annual
meetings of the Bank and the International Monetary Fund.
    Referring to Brazil's recent interest payments moratorium,
Conable also said the global debt situation was very serious
and must be closely watched.
    He said the Bank, which in the past has concentrated on
making loans that assist the basic underpinnings in the
developing world such as dams, roads and sewers, will
increasingly make assistance available for economic reform.
    The Bank has increased these loans, in part because of the
debt crisis that has found countries desperately in need of new
funds for balance of payments adjustment and economic reforms
aimed at opening their markets, encouraging foreign investment
and reducing government's role in the economy.
    "We're comfortable with adjustment lending, we expect,
however, that it will never reach a majority of our portfolio,"
Conable said.
    He made clear, however, that adjustment lending would
continue to increase as a proportion of overall Bank lending
for some time.
    He noted, "the problem of debt was a severe one and many
countries are asking for adjustment assistance because of the
problem of debt."
    Conable, is a a former Republican Congressman from New York
chosen by President Reagan for the Bank position last year. He
is an associate of Treasury Secertary James Baker who launched
the U.S. strategy for shoring up indebted nations in October,
1985 which included a call for increased adjustment lending by
the World Bank.
    Conable also said that he expected the result of a major
study of the Bank's organization to be completed in the next
several weeks.
    He said the decision to seek a reorganization was based, in
part, on the fact that the Bank had come under fire from the
poorest countries for not doing enough to help and from the
richest countries because of inefficiency.
    the reorganization is considered a major initiative by
Conable, and is being closely-watched by the agency's 151
member-countries as an indication of his management style and
priorities.
    "I want to be sure this institution is viewed by those who
must support it as soundly constituted so that it will be
permitted to grow," Conable said.
    However, he said "I don't believe there is anything
basically wrong with this institution and I don't believe it
has to have any redefinition of its purpose."
    He said, however, that it was apparent that the debt
initiative proposed by Baker has given the Bank a central role
in dealing with the debt crisis.
    Conable added that cooperation between the Bank and its
sister agency, the International Monetary Fund, was good and
that he talked often with IMF Managing Director Michel
Camdessus on a variety of issues.
    On a personal level, Conable said that he not feel a need
to put his personal stamp on the Bank noting that "I don't have
a particular mission here except to be useful to the
institution and to the process of development."
    He added, "so I don't feel a great calling to personalize
the institution."
    On the development needs of sub-Sahara Africa, Conable said
that the Bank was constantly reviewing new ways for assisting
the region, noting that half of the recently agreed financing
of 12.4 billion dlrs for Bank's International Development
Association was earmarked for Africa.
    Leading industrial nations are expected to consider new
forms of debt relief for the very poorest nations, like those
in the Sub-Sahara, during next week's meetings.


.I 2021
.C
strategic-metal
.W
MINAS DE ALMADEN RAISES MERCURY PRICE.
    MADRID, April 3 - Spain's Minas de Almaden y Arrayanes S.A.
has agreed with Algerian producer ENOF to establish a minimum
price of 300 dlrs per flask for spot mercury sales, Almaden
spokesman Jesus Gallego said.
    In response to enquiries from Reuters, he said his company
had raised the minimum price for its spot sales from 240 dlrs
per flask following talks with ENOF.
    In a separate press release, the company said that ENOF and
Almaden held talks in Istanbul a week ago with Turkish mercury
producers on ways to improve prices, but Gallego said he was
not in a position to say what action the Turkish companies
would be taking.


.I 2022
.C
money-fx
.W
U.S. JOBS DATA SAID TO RULE OUT FED TIGHTENING.
    By Kathleen Hays, Reuters
    NEW YORK, April 3 - A steep drop in goods-producing jobs
detracted from U.S. March non-farm payroll employment and makes
it unlikely that the Federal Reserve will tighten monetary
policy to defend the dollar, economists said.
    U.S. March non-farm payroll employment rose 164,000, less
than the gain of 220,000 to 290,000 the financial markets
expected. Manufacturing employment fell 25,000, compared with
February's 50,000 gain, while March construction employment
dropped 45,000 after being unchanged in February.
    "The momentum of industrial activity is tapering off as we
end the first quarter," said Stephen Roach of Morgan Stanley
and Co Inc. "This sets the stage for more sluggish growth in
the second and third quarters."
    "The Fed will view this as a caution flag on the economy,"
he said. "They will not ease as long the dollar is weak, but
clearly they can't tighten."
    David Wyss of Data Resources Inc said that the downward
revision in February non-farm payroll employment to 236,000
from 337,000 means that employment gains in the first quarter
were weaker than expected.
    While Wyss left his first-quarter forecast of real U.S.
gross national product growth at 3.5 pct, he said the March
jobs data suggested a downward revision in his second-quarter
growth forecast to 2.5 pct from 2.8 pct.
    Bill Sullivan of Dean Witter Reynolds Inc said the average
monthly gain in non-farm jobs in the first quarter was only
237,000, compared with 254,000 in the fourth quarter of 1986.
    "There's momentum in first quarter labor force activity, 
but less than assumed," he said. "Gains in goods-producing jobs
were subdued at best. This rules out any possibilty of the Fed
tightening for exchange-related purposes."
    In March, the average workweek fell back to its January
level of 34.8 hours from 35.0 hours in February. Manufacturing
hours also fell back to their January level, totalling 40.9
hours in March compared with 41.2 hours in February.
    The Commerce Department noted that loss of manufacturing
jobs in March was concentrated in automobile, electrical and 
electronic manufacturing.
    Robert Brusca of Nikko Securities International said that a
13,000 decline in auto manufacturing employment accounted for
nearly half of the total drop in manufacturing jobs.
    Economists said that a build-up in auto inventories
resulting from a steep drop in sales has finally caught up with
the labor force and may point to slower growth ahead.
    Most expect an increase in inventories of as much as five
pct to offset a steep four to five pct drop in final sales in
the first-quarter GNP accounts.
    Roach said he expects first quarter U.S. GNP to rise two
pct, to be followed by a gain of 1.0-1.5 pct at best in the
second and third quarters. He said the March drop in industrial
activity "is a reasonable response in light of the inordinate
contribution inventory accumulation made to GNP."
    Economists said the employment data also suggest weak gains
in industrial production and personal income for March.
They expect only marginal gains, if not small declines, for
these indicators, compared with a February increases of 0.5 pct
in industrial production and 0.9 pct in personal income.
    Steve Slifer of Lehman Government Securities said the drop
in March construction employment may also signal a drop in
March housing starts, which rose 2.6 pct in February to 1.851
million units at an annual rate from 1.804 million units in
January.
    The rate of unemployment fell to 6.6 pct, its lowest level
since March 1980, from 6.7 pct in February. But Wyss pointed
out that this resulted from a drop in the labor force, which 
fell to 119.2 mln in March from 119.35 mln in February.
    "This just means that there were fewer people looking for
work, so the drop in unemployment doesn't mean much," he said.
    He said the latest employment report will not concern the
Fed because it does points to GNP growth in the first half of
2.5-3.0 pct, but "it does suggest they can't afford to tighten
to quickly either."
    The statistical factors used to smooth out seasonal
fluctuations in the jobs data may have understated March labor
force gains, just as seasonal factors probably overstated them
in January and February, Slifer said, but are consistent with
his forecast of 1.8 pct first quarter GNP growth.
    Economic growth remains sluggish, but Silfer does not think
that the Federal Open Market Committee changed policy at their
meeting this week. "At some point they will be more inclined to
ease," he said. For the time being, however, the March
employment report "increases the likelihood they won't tighten,
regardless of the dollar."



.I 2023
.C
acq
.W
BRISTOL-MYERS <BMY> REVIEWING SCIMED MERGER.
    MINNEAPOLIS, April 3 - SciMed Life Systems Inc <SMLS> said
Bristol-Myers Co is analyzing the pending lawsuit brought
against SciMed by <Advanced Cardiovascular Systems Inc> to
determine whether to consummate its previously announced plans
to merge with SciMed.
    The company said its was served the suit in Minneapolis on
March 31, the day after it announced its definitive merger
agreement with Bristol-Myers.
    SciMed said the suit, which alleges that SciMed infringed
on Advanced Cardiovascular patents, is without merit.


.I 2028
.C
earn
.W
US WEST <USW> HIKES DIVIDEND.
    DENVER, April 3 -
    Qtly div 82 cts vs 76 cts prior
    Pay May 1
    Record April 16


.I 2029
.C
acq
.W
BELL PETROLEUM <BPSIO>, REGAL TO FORM PLAN.
    HOUSTON, APril 3 - Bell Petroleum Services Inc said it
agreed to begin talks with Regal International Inc to form a
plan of reorganization under which Bell would become a
subsidiary of Regal.
    The plan would be subject to Bankruptcy court approval due
to Bell's status as a debtor-in-possesion under Chapter 11. the
company's expect to file a plan by the end of May.
    This agreement terminates litigation between the companies
concerning previous attempts at a plan of reorganization..
    Bell is also free to continue talks with any third parties
interested in an acquisition, it said.


.I 2031
.C
earn
.W
HEALTHVEST <HVT> DECLARES THREE-WEEK DIVIDEND.
    AUSTIN, Texas, APril 3 - Healthvest said its board declared
a dividend for the final three weeks of the March quarter of 14
cts, payable April 28 to holders of recrod April 15.
    Previously, it dclared a special interim dividend of 42 cts
for January 1 to March 9 in connection with its recently
completed offering.
    The combined dividend totals 56 cts for the March quarter,
an increase from the prior quarter's dividend of 55 cts


.I 2033
.C
earn
.W
CPI CORP <CPIC> 4TH QTR FEB 7 NET.
    ST. LOUIS, April 3 -
    Shr 43 cts vs 36 cts
    Net 7,209,000 vs 5,574,000
    Sales 77.7 mln vs 58.7 mln
    Avg shrs 16,676,000 vs 15,478,000
    Year
    Shr 1.12 dlrs vs 1.10 dlrs
    Net 18,371,000 vs 17,032,000
    Sales 257.5 mln vs 198.3 mln
    Avg shrs 16,411,000 vs 15,433,000
    NOTE: Year-ago period ended Feb 1, 1986
    Full-year earnings include gains from discontinued
operations of 184,000 dlrs, or one ct a share vs 3,143,000
dlrs, or 20 cts a share


.I 2036
.C
grain
.W
ADM GRAIN ELEVATOR EXPLODES IN BURLINGTON, IOWA.
    CHICAGO, April 3 - A grain elevator in Burlington, Iowa,
exploded today, leaving five injured.
    The elevator, operated by Archer Daniels Midland Co. of
Decatur, Ill., is a terminal elevator on the Mississippi River,
Doug Snyder, assistant to the vice president said.
    The cause of the explosion and the extent of damage to the
elevator was not immediatley known.


.I 2039
.C
grain
.W
U.S. GRAIN CARLOADINGS FALL IN WEEK.
    WASHINGTON, April 3 - U.S. grain carloadings totaled 25,744
cars in the week ended March 28, down 4.3 pct from the previous
week but 41.6 pct above the corresponding week a year ago, the
Association of American Railroads reported.
    Grain mill product loadings in the week totalled 10,920
cars, up 0.1 pct from the previous week and 12.7 pct above the
same week a year earlier, the association said.


.I 2041
.C
acq
.W
SEC CLARIFIES POSITION ON TENDER OFFER CHANGES.
    WASHINGTON, April 3 - The Securities and Exchange
Commission reminded corporate raiders and others tendering for
the shares of companies that they must extend the period their
offers are open if key conditions are changed.
    Specifically, the agency said those making tender offers
for companies' stock must extend the offers if they decide to
eliminate conditions requiring a minimum number of shares to be
tendered in order for the offers to be valid.
    Tender offers typically include minimum share conditions.
As a result, a purchaser would not be bound to buy the shares
that were tendered if the minimum level were not reached.
    In an interpretation of current rules, which officials said
clarifies the SEC's present position, the agency said a tender
offer must be extended if a minimum share condition is waived,
even if the purchaser reserved the right to do so.
    The interpretation makes clear that waiving a minimum share
condition is a "material change" of the tender offer under U.S.
securities law, SEC officials said.
    The SEC has already said that other specific material
changes, such as changes in the percentage of securities being
sought or the price being offered, made during the course of a
tender offer require a 10-day extension of the offer.
    The length of the extension, which is aimed at giving
shareholders an adequate chance to assess revisions of a tender
offer, was not specified in cases where the minimum share
conditions were waived.
    SEC officials said the length of the extension in such
cases would depend on the facts and circumstances surrounding
each case, but would generally be between five and 10 days.
    The agency cited two recent tender offers in which waivers
of a minimum share conditios were tried on the last day of each
offer, denying shareholders the chance to react to the new
information. Officials declined to identify the two offers.
    "If a bidder makes a material change near or at the end of
its offer, it will have to extend the offer to permit adequate
dissemination," the SEC said.
    Federal securities law requires that all tender offers
remain open for at least 20 business days.


.I 2046
.C
acq
.W
GENCORP <GY> UNIT COMPLETES WOR-TV SALE.
    AKRON, Ohio, April 3 - GenCorp said its RKO General Inc
subsidiary completed the sale of WOR-TV to MCA Inc <MCA> for
387 mln dlrs.
    The Federal Communications Commission approved the sale
last December, GenCorp said. The closing was delayed because
that decision was appealed by four parties to the U.S. Court of
Appeals, GenCorp explained.
    WOR-TV is based in  Secaucus, N.J., GenCorp said.
    Earlier today, <General Partners> said it was prepared to
raise its bid to 110 dlrs per share, or even more, in its bid
for GenCorp.


.I 2047
.C
earn
.W
GALILEO ELECTRO-OPTICS CORP <GAEO> 2ND QTR .
    STURBRIDGE, Mass., April 3 - Galileo Electro-Optics Corp
said estimated earnings for the second quarter ended March 31,
1987, will be over current analysts estimates of 40 cts to 45
cts per share.
    However, the company said it has not closed its books for
the quarter and release earnings April 20.


.I 2049
.C
palm-oil;veg-oil;coconut-oil;
.W
U.S. SCIENTISTS SAY TROPICAL OILS HEALTH RISK.
    By David Brough, Reuters
    WASHINGTON, April 3 - U.S. scientists said some tropical
vegetable oils can be hazardous to consumers whose health is at
risk because of high levels of saturated fat, lending weight to
a campaign by the American Soybean Association (ASA) for
labelling changes.
    The scientists appeared to support an ASA charge, denied by
Malaysian palm growers, that imported coconut, palm and palm
kernel oils contain high levels of saturated fat and thus raise
blood cholesterol and the risk of heart disease.
    In a petition filed in January, the ASA asked the U.S. Food
and Drug Administration (FDA) to require palm, palm kernel and
coconut oils to be identified as saturated fats on food
manufacturers' labels.
    The FDA responded to the ASA in a letter saying it would
consider the petition as a comment to a proposed rule dealing
with cholesterol and fatty acid labelling of foods.
    Malaysian oil palm growers have said the charges by the ASA
that palm oil consumption increases blood cholesterol and
contributes to heart disease are untrue.
    But Steve Chang, Professor of Food Science at Rutgers
University, said, "Palm oil is definitely not good for human
health because it has a high content of saturated fatty acid."
    He added that the higher the fatty acid, the greater the
blood cholesterol level. "It has been well established that
high cholesterol levels will have a higher level of heart
disease," he said.
    A Malaysian Oil Palm Growers Council official, Borge
Bek-Nielsen, has said studies have shown that palm oil is
cholesterol-free, low in saturated fats, has anti-cancer
properties and prevents blood clotting and blocking of arteries
in humans.
    Bek-Nielsen said Americans consume more saturated fats
daily through food like butter, bacon, ham and beef than from
palm oil, which, he added is rich in vitamins A and E.
    David Kritchevsky, Associate Director of the Wistar
Institute in Philadelphia, appeared to take the ASA view on
labelling. "What people really have to learn is to read labels,"
said Kritchevsky. "The more a consumer knows, the more likely he
will make an intelligent choice."
    The U.S. scientists said they had no doubt imported palm,
palm kernel and coconut oils contain high saturated fat levels.
    Kritchevsky, a specialist in nutrition, said, "More
saturated fat would raise cholesterol levels...So, from that
point of view it's a health risk. High cholesterol levels in
the blood are a risk factor for heart disease."
    Susanne Harris, deputy assistant secretary of the U.S.
Agriculture Department's Food and Consumer Services Division,
said the health risk among consumers of vegetable oils with
high saturated fat levels was highest among those who have
heart disease.
    The scientists said more than 50 pct of the fatty acid
content of the tropical oils was saturated, whereas less than
20 pct of the fatty acid content of soybean oil was saturated.
    David Ericksen, director of ASA's technical services, said
U.S. soybean producers could regain about one-half of the 273
mln dlrs in sales lost to imported tropical oils if consumers
were aware the vegetable oils were high in saturated fat.
    Imported tropical oils displace 171 mln bushels of U.S.
soybean sales in the U.S. market, ASA estimates.
    U.S. imports of coconut oil during January totaled 82.9 mln
lbs compared with 48.0 mln lbs in December and 106.5 mln a year
earlier, according to Commerce Department figures.
    Imports of palm oil totaled 44.0 mln lbs compared with 51.3
mln lbs in December and 85.2 mln a year earlier.


.I 2054
.C
acq
.W
SNYDER <SOI> MAKES CENERGY <CRG> EXCHANGE OFFER.
    WASHINGTON, April 3 - Snyder Oil Partners L.P. told the
Securities and Exchange Commission it made an exchange offer to
Cenergy Corp that would allow Snyder to acquire up to 49.9 pct
of the company's common stock.
    Under the exchange offer, which was proposed yesterday to
Cenergy's officers and directors, each share of Cenergy common
stock could be exchanged for 8.50 dlrs in market value of
Snyder's limited partnership units, Snyder said.
    Under the proposal, Snyder, which already holds 1,170,400
Cenergy common shares, or 12.0 pct of the total, could boost
its Cenergy stake to a total of 49.9 pct, it said.
    Snyder did not say whether it has received any response to
its proposal from Cenergy.
    If it acquires the 49.9 pct stake, Snyder said in its SEC
filing it would use the stock to "obtain a proportionate
beneficial interest" in the company's assets and liabilities.
    It said it has not decided its next move it the exchange
proposal does not lead to negotiations with Cenergy.
    Snyder said it may boost its stake or sell some or all of
its current holdings. It repeated a statement made in its
initial SEC filing last month that it is considering several
alternatives, including seeking control of Cenergy.


.I 2058
.C
acq
.W
HARLEYSVILLE GROUP <HGIC> SEEKS TO ACQUIRE FIRM.
    HARLEYSVILLE, Pa., April 3 - Harleysville Group Inc said it
was in talks to acquire Atlantic Mutual Fire Insurance Co, a
property and casualty insurer licensed in five southern states.
    The company said it believes an acquisition could be
completed by June 30, subject to approval by regulatory and
Atlantic Mutual policyholders.
    Harleysville plans to invest about four mln dlrs in the
business if the deal is completed.


.I 2059
.C
acq
.W
KROGER <KR> TO BUY EIGHT FOOD STORES.
    DALLAS, April 3 - Kroger Co said it agreed to buy nine 
retail food stores from the Dallas division of <Safeway Stores
Inc>, which announced it was closing the 141-store division as
part of a restructuring.
    Terms were not disclosed.
    Kroger expects to take over operation of the stores, one of
which is under construction, in late April. The addition of the
stores will bring Kroger's Dallas division to 75 stores, it
said.
    It operates more than 1,300 stores in 20 states.


.I 2061
.C
earn
.W
<DOUGLAS COMPUTER INTERNATIONAL> YEAR NET.
    SALT LAKE CITY, April 3 -
    Shr seven cts vs one ct
    Net 178,919 vs 34,429
    Sales 3,148,420 vs 1,912,438


.I 2062
.C
earn
.W
MEDICAL STERILIZATION INC <MSTI> YEAR LOSS.
    SYOSSET, N.Y., April 3 -
    Shr loss 65 cts vs loss 1.31 dlrs
    Net loss 1,366,340 vs loss 2,148,656
    Revs 2,664,852 vs 799,864


.I 2063
.C
wheat;grain;
.W
CCC ACCEPTS EXPORT BONUS FOR WHEAT TO SRI LANKA.
    WASHINGTON, April 3 - The U.S. Agriculture Department said
it has accepted a bid for an export bonus to cover the sale of
50,000 tonnes of hard red winter wheat to Sri Lanka.
    A bonus of 37.44 dlrs per tonne was awarded to Continental
Grain Co on the shipment scheduled for April 8-16, Melvin Sims,
USDA general sales manager said.
    An additional 10,000 tonnes of wheat are still available to
Sri Lanka under the export enhancement program, Sims said.


.I 2064
.C
acq
.W
RVIAL TO UNION CARBIDE EMERGES IN FRENCH BID.
    PARIS, April 3 - <Carburos Metalicos> of Spain has bid
2,205 francs a share for French chemicals group <Duffour et
Igon>, rivalling the 2,100 franc bid announced yesterday by
Union Carbide France, the French subsidiary of the U.S.
Chemical giant Union Carbide Corp <UK.N>, the stockbrokers'
assocation (CSAC) said here.
    Duffour et Igon's capital is comprised of 133,100 shares
with a nominal value of 100 francs each. Shares were last
quoted at 856 francs on January 9.
    Banque Paribas will act for Carburos Metalicos, while Union
Carbide France's bid is being led by Rothschild et Associes
Banque.
    Duffour et Igon shares will be suspended on April 6 and 7
and will resume trading on April 8.


.I 2065
.C
crude
.W
BRAZIL TO BUY 30,000 BPD OF KUWAITI OIL.
    RIO DE JANEIRO, April 3 - Brazil will import 30,000 barrels
per day of crude oil from Kuwait, a spokesman for the state oil
company Petrobras said.
    He said that, unlike Saudi Arabia, Kuwait did not impose
any conditions on Brazil.
    Last month, Petrobras cancelled a 40-mln dlr oil purchase
from Saudi Arabia after the Saudis refused to accept credit
guarantees from the official Bank of Brazil.
    The Saudis eventually lifted the condition and Brazil
decided to reconfirm the purchase.
    Brazil currently consumes 1.1 mln barrels of oil per day.


.I 2066
.C
wheat;grain;
.W
U.S. DURUM WHEAT BONUS BID TO ALGERIA ACCEPTED.
    WASHINGTON, April 3 - The U.S. Agriculture Department said
it has accepted a bid for an export bonus to cover the sale of
18,000 tonnes of U.S. durum wheat to Algeria.
    A bonus of 43.25 dlrs per tonne was awarded to Cam USA Inc
on the shipment scheduled for June 20-30, Melvin Sims, USDA
general sales manager, said.
    An additional 228,000 tonnes of durum wheat are available
to Algeria under the department's export enhancement program,
Sims said.


.I 2068
.C
grain;barley;
.W
USDA OFFERS EEP BARLEY MALT TO COLOMBIA.
    WASHINGTON, April 3 - The U.S. Agriculture Department
announced Colombia has been made eligible for sales of up to
15,000 tonnes of barley malt under the department's export
enhancement program, EEP.
    As with the previous 64 EEP initiatives, sales of U.S.
barley malt would be made to buyers in Colombia at competitive
world prices, USDA said.
    The export sales would be subsidized with commodities from
the inventory of the Commodity Credit Corp and enable U.S.
exporters to compete at commercial prices in the Colombian
market, USDA said.


.I 2071
.C
crude;nat-gas;
.W
TEXAS PETROLEUM ACQUIRES OIL AND GAS PROPERTIES.
    DALLAS, April 3 - Texas Petroleum Corp said it issued 14.4
mln shares of restricted common stock in exchange for oil and
gas properties and joint ventures located in the U.S. and
overseas.
    The properties were acquired from <North American Oil and
Gas Corp> and Texas Petroleum Corp in Canada, the company said.
It added the acquisitions were the first step toward creating
an oil and gas exploration and development enterprise.


.I 2072
.C
acq
.W
METROMEDIA BUYS WARRANT FOR SHARES OF ORION.
    SEACAUCUS, N.J., April 3 - <Metromedia Co> said it
purchased from Time Inc's <TL> Home Box Office Inc a warrant to
purchase 800,000 shares of common stock of Orion Pictures Corp
<OPC>.
    The price for the warrant was 10 mln dlrs, Metromedia said.
It added that it now owns 16.4 pct of the outstanding common
stock of Orion.


.I 2074
.C
interest
.W
BANK OF MONTREAL LOWERS CREDIT CARD RATE.
    TORONTO, April 3 - Bank of Montreal said it will reduce the
interest rate it charges on outstanding MasterCard balances to
18.3 pct from 21 pct, beginning in July.
    The bank said it will continue its policy of not charging
any annual fee or transaction fees to credit card holders.
                


.I 2079
.C
earn
.W
ENEX RESOURCES CORP <ENEX> 4TH QTR LOSS.
    KINGWOOD, Texas, April 3 -
    Shr not given
    Net loss 330,613 vs profit
    Revs 2,170,628 vs 614,511
    Year
    Shr loss one ct vs profit nine cts
    Net loss 212,289 vs profit 829,747
    Revs 5,397,167 vs 3,785,688


.I 2082
.C
earn
.W
OSHAP TECHNOLOGIES LTD <OSHUF> YEAR LOSS.
    NEW YORK, April 3 -
    Shr loss 12 cts vs loss three cts
    Net loss 646,000 vs loss 96,000
    Revs 9,414,000 vs 9,899,000
    Avg shrs 5,382,833 vs 3,722,833
    NOTE: Converted using Dec 31 exchange rate of 40.05 Belgian
francs to the U.S. dlr.



.I 2083
.C
earn
.W
<DOUGLAS COMPUTER INTERNATIONAL> YEAR END 1986.
    SALT LAKE CITY, April 3 -
    Shr seven cts vs one ct
    Net 178,919 vs 34,429
    Revs 3,148,420 vs 1,912,438


.I 2084
.C
crude
.W
CANADA OIL INDUSTRY SET FOR RECOVERY - ANALYSTS.
    By LARRY WELSH, Reuters
    TORONTO, April 3 - Firmer crude oil prices, government aid
packages and corporate spending cuts will help Canada's oil
industry recover from last year sharp downturn, industry
analysts said.
    They said there will be significant earnings gains in 1987
compared to last year's dismal results when oil prices dropped
about 50 pct.
    On Canada's stock exchanges, energy shares have soared to
their highest levels since 1983, with many issues trading at
record highs.
    "This is reflecting a tremendous amount of optimism on the
part of the investment community that the outlook for the
industry for the future is extremely attractive," Peters and Co
Ltd oil analyst Wilf Gobert said.
    Financial statements from Canada's major oil companies,
culminating with Dome Petroleum Ltd's 2.20 billion Canadian dlr
1986 loss reported this week, painted a bleak picture of last
year's results, analysts said.
    "But the financial statements are a snap shot and a
recording of history. The stock market is the indication of the
future," Gobert commented.
    The Toronto Stock Exchange's oil and gas index of 41
companies is up to 4065.4 so far in trading today from 3053.15
at the end of 1986.
    Among Canada's largest oil companies, class A shares of
Imperial Oil Ltd <IMO.A>, 70 pct owned by Exxon Corp <XON>, is
trading at 71, up from a 52-week low of 34-3/4.
    Shell Canada Ltd, 72 pct owned by Royal Dutch/Shell Group,
is at 40-1/2, up from a low during the last year of 18-3/4.
Texaco Canada Inc <TXC>, 78 pct owned by Texaco Inc <TX>, is
at 34-7/8, up from a low of 24-1/2.
    Levesque Beaubien Inc oil analyst Robert Plexman forecasts
operating profit for 10 of Canada's largest oil and gas
companies will rise 37 pct in 1987 to about 1.44 billion dlrs
and operating cash flow will increase 12 pct to 3.24 billion
dlrs, based on an average oil price for the year of 16.50 U.S.
dlrs a barrel. "However, if prices hold about 18 U.S. dlrs a
barrel...1987 net operating income could show a 69 pct increase
with cash flow 27 pct higher," analyst Plexman said.
    "Although it is difficult to forecast the extent of the
profit improvement this year, the gain should be significant,"
he added.
    Those improvements follow a sharp downturn in 1986, when
operating income for the ten companies dropped 47 pct to 1.05
billion dlrs and operating cash flow fell 22 pct to 2.90
billion dlrs.
    But one industry source doesn't think oil prices will hold
recent gains and more government assistance is needed.
    Canadian Petroleum Association technical director Hans
Maciej sees industry cash flow falling another 10 pct in 1987,
after dipping about 60 pct last year. Maciej said he sees crude
oil supply outweighing demand and doesn't believe a recent OPEC
production accord will continue to support prices.
    However, several companies share the optimistic industry
outlook expressed by a majority of analysts.
    Shell Canada and <Norcen Energy Resources Ltd> forecast
improved 1987 earnings in their annual reports issued this
week, assuming oil prices remain at or above 1986 levels.
    "The industry's outlook for 1987 is positive, but not
robust," Texaco Canada said in its annual report.
    "While oil prices have strengthened somewhat and there is
good reason to believe that the general level is sustainable,
continued volatility is likely," Texaco Canada added.
    In the face of short-term uncertainty, many companies have
pared 1987 spending plans from last year's lower levels,
deferring most frontier exploration work.
    "The industry is becoming very selective in investments,
very conservative and cautious, which is not unexpected,"
Canadian Petroleum Association's Maciej said.
    Federal and Alberta goverment aid measures helped cushion
the industry downturn in 1986 and are improving 1987 results.
    The most significant help came last September when the
federal government lifted the 10 pct Petroleum Gas Revenue Tax
(PGRT) 28 months earlier then planned.
    Analysts estimate the tax relief will save larger oil
companies about 1.50 billion dlrs by the end of 1988.
    The PGRT cut helped brake the steep profit and cash flow
decline in 1986 for many oil companies and prevented further
exploration spending cuts, analysts said.
    "For a number of companies, the PGRT cut was absolutely
necessary to even maintain the kind of reduced investments that
were made, otherwise the reduction would have been considerably
more," Maciej said.




.I 2085
.C
gold
.W
U.S. GOLD PRODUCTION ROSE IN DECEMBER.
    WASHINGTON, April 3 - U.S. mine production of gold rose to
244,900 troy ounces in December from 244,749 ounces in
November, the U.S. Interior Department's Bureau of Mines said.
    U.S. imports of gold in December were 692,700 ounces, vs
2,011,754 ounces in November and 611,811 ounces in December,
1985.
    Gold exports totaled 243,191 ounces in December, vs
November's 374,468 ounces and 350,078 ounces in December a year
earlier.
    Mine production of gold in the 12-month period Jan-Dec,
1986, totaled 2,951,151 ounces, vs 2,475,436 ounces over the
same period in 1985.
    Gold imports in Jan-Dec, 1986, totaled 15,749,447 ounces,
vs 8,225,999 ounces for the same period in 1985, while exports
stood at 4,612,919 ounces and 3,966,678 ounces over the
respective periods, the bureau said.


.I 2087
.C
earn
.W
JACK WINTER INC <JWI> 4TH QTR JAN 3 LOSS.
    MILWAUKEE, April 3 -
    Shr loss 67 cts vs loss seven cts
    Net loss 2,410,000 vs loss 245,000
    Revs 11.0 mln vs 10.9 mln
    12 mths
    Shr loss 21 cts vs profit 43 cts
    Net loss 748,000 vs profit 1,571,000
    Revs 46.9 mln vs 40.5 mln


.I 2088
.C
silver
.W
U.S. SILVER PRODUCTION ROSE IN DECEMBER.
    WASHINGTON, April 3 - U.S. mine production of silver rose
to 2,295,230 troy ounces in December from 2,181,082 in
November, the Interior Department's Bureau of Mines said.
    U.S. imports of silver in December were 8,458,000 ounces,
vs 19,950,000 in November, and 8,840,000 in December, 1985.
    Silver exports totaled 1,549,000 ounces in December, vs
2,346,000 in November and 1,504,000 ounces in December, 1985.
    Silver mining production in the 12-month period Jan-Dec,
1986 totaled 31,720,769 ounces, vs 39,357,197 ounces produced
over the same period in 1985.
   Imports of silver in Jan-Dec, 1986 totaled 144,890,000
ounces, vs 152,601,000 ounces in Jan-Dec, 1985, while silver
exports stood at 25,114,000 ounces and 24,756,000 ounces over
the respective periods, the bureau said.


.I 2089
.C
ship;grain;
.W
GRAIN SHIPS LOADING AT PORTLAND.
    PORTLAND, April 3 - There were five grain ships loading and
three ships were waiting to load at Portland, according to the
Portland Merchants Exchange.


.I 2091
.C
earn
.W
PLANTERS CORP <PNBT> 1ST QTR NET.
    ROCKY MOUNT, N.C., April 3 -
    Shr 32 cts vs 28 cts
    Net 2,194,000 vs 1,929,000


.I 2092
.C
grain;rice;
.W
LOWER U.S. RICE STOCKS, STRONG EXPORTS - USDA.
    WASHINGTON, April 3 - Rising demand for U.S. rice may
gradually reduce surpluses while a marketing loan should help
increase the U.S. share of the world rice market despite
sluggish trade this year, the U.S. Agriculture Department said.
    In its quarterly rice outlook and situation summary, the
department said U.S. rice use may surpass production during the
1986/87 marketing year, causing stocks to fall about 10 mln
hundredweight from a year earlier to an estimated 67 mln cwt on
July 31.
    Long grain acreage as a percentage of total acreage is
expected to decline this year, the report said.
    USDA said factors once supportive of increased long grain
acreage have turned around. Domestic prices of medium grain
relative to long grain have increased, the loan differential
has been greatly reduced and increases in long grain yields
relative to those of other classes have leveled off.
    With the drop in domestic prices resulting from the
marketing loan, domestic rice use is expected to grow at a
faster rate, USDA said.
    "Development of new products and increased promotion have
helped make rice more available and visible to a wider range of
consumers," USDA said.
    USDA said world trade is expected to fall in 1987 because
of large production and stocks but a weaker market should
affect competing exporters more than the U.S.
    "The United States has already recovered a substantial share
of the European Community market and made inroads into markets
in the Middle East and Africa," the report said.
    World rice consumption is projected to reach record levels
in 1986/87, the report said, as higher per capita incomes,
increased domestic production and low import prices have
allowed people in many countries to substitute rice for coarse
grains.
    China, India and South Korea have increased output, while
the Middle East and Africa have doubled imports since the
mid-1970s, the report said.


.I 2093
.C
acq
.W
HUTTON <EFH> STILL INTERESTED IN PUROLATOR <PCC>.
    New York, April 3 - E.F. Hutton LBO Inc is still interested
in an acquisition of Purolator Courier Corp, and is examining
the possibility of raising its 35 dlr per share offer, an E.F.
Hutton spokesman said.
    Hutton's offer was topped by a 40 dlr per share offer from
Emery Air Freight Corp <EAF> earlier this week.
    "We're definately not out of it at this point," the Hutton
spokesman said.
    "We want to see what the offer is completely and understand
it fully, and then fashion our response," the spokesman said.
    After Emery made its offer, Hutton extended the deadline on
its offer to Monday. The offer was to have expired Wednesday.
    Analysts said it might be difficult for Hutton to raise the
offer since Emery, an overnight courier, might have an easier
time justifying a lofty price since it would realize cost
savings by combining its business with those of Purolator.
    Purolator, a New Jersey-based overnight courier, has
declined comment.
    Purolator had traded above the Hutton offer price on
speculation a new bidder would emerge. It was up 1/8 today at
40-3/8, above the Emery offer.


.I 2095
.C
earn
.W
<DREYFUS A BONDS PLUS INC> MONTHLY PAYOUT.
    NEW YORK, April 3 - 
    Mtly div 10.4 cts vs 10.8 cts prior
    Paid April 1
    Record March 31


.I 2098
.C
grain;rice;
.W
TURKEY ELIGIBLE FOR U.S. BONUS RICE.
    WASHINGTON, April 3 - The U.S. Agriculture Department said
Turkey has been made eligible for the sale of up to 70,000
tonnes of medium grain milled rice under the department's
export enhancement program, EEP.
    As with the 65 previous EEP initiatives, the export sales
would be subsidized with commodities from the inventory of the
Commodity Credit Corp and made at competitive world prices,
USDA said.


.I 2099
.C
nat-gas;propane;
.W
INTERNATIONAL LPG PRICES MIXED.
    New York, April 3 - International LPG prices were mixed in
the past week, with North Sea prices easier while prices in the
Mediterranean and the Gulf were up in April, traders said.
    In the North Sea market, small cargoes of propane were sold
as high as 126 dlrs per tonne on the f.o.b. basis early in the
week, but prices eased after the majors posted their April
contract prices, traders said.
    British Petroleum plc <BP> left propane unchanged at 110
dlrs and raised butane prices 5.50 dlrs to 123 dlrs, Shell, a
unit of Royal Dutch/Shell Group <RD> <ST> raised propane three
dlrs to 113 and butane 5.50 dlrs to 123 dlrs, they said.
    In the Mediterranean, prices firm in Lavera as Algerian
supplies were not always available. Spot propane was unchanged,
while butane rose about 25 dlrs from last week, traders said.
    They said, however, the Mediterranean butane market was
very thin, making it subject to wide price swings.
    In the Gulf, strong demand from the Far East pushed premium
on small cargoes five to 10 dlrs above government selling price
(gsp) for propane and 10 dlrs for butane, traders said. 
    The rising premium over gsp, however, was partially offset
by about 10 pct decline in shipping, making prices for propane
about unchanged and butane five dlrs higher, basis c. and f.
Japan, the traders said.
SPOT.(DLRS/TONNE)......PROPANE..............BUTANE...........
NORTH SEA (FOB)........113/117..............125/130..........
NORTH SEA (CIF)........120/125..............135/140..........
MEDITERRANEAN.(CIF)....140/145..............175/180..........
THE GULF (FOB).........130/135..............140/145..........
JAPAN (C AND F)........155/160..............160/165..........
OFFICIAL PRICES-FOB..........................................
SAUDI ARABIA (3/1)........125.................125............
ALGERIA......(3/1)........120.................130............
BP/POSTED PRICE.(4/1).....110.................123.00.........
SHELL/POSTED PRICE.(4/1)..113.................123.00.........


.I 2100
.C
earn
.W
SCOTT INSTRUMENTS CORP <SCTI> YEAR LOSS.
    DENTON, Texas, April 3 -
    Shr loss 15 cts vs loss 27 cts
    Net loss 1,905,774 vs loss 2,160,717
    Revs 868,117 vs 307,135


.I 2105
.C
earn
.W
SCOTT INSTRUMENTS <SCTI> GETS QUALIFIED AUDIT.
    DENTON, Texas, April 3 - Scott Instruments Corp said its
independent public accountants qualified the report on Scott's
1986 financial statements because of its weak financial
condition.
    The report indicates the realization of the company's
assets is dependent on it obtaining enough working capital to
finance operations and additional funds to meet other
liabilities, among other things.
    These factors indicate the company may be unable to
continue its existence.
    Earlier, Scott reported a 1986 loss of 1.9 mln dlrs
compared to a loss of almost 2.2 mln dlrs in 1985. Total assets
were nearly 1.1 mln dlrs at year end, down from 1.2 mln dlrs
the prior year.


.I 2107
.C
earn
.W
<THORATEC LABORATORIES CORP> YEAR LOSS.
    BERKELEY, Calif., April 3 -
    Shr loss 1.64 dlrs vs loss 2.08 dlrs
    Net loss 9,761,000 vs loss 10,977,000
    Revs 4,409,000 vs 2,697,000


.I 2108
.C
acq
.W
BAYOU INTERNATIONAL GETS STAKE IN AMALGAMATED.
    LOS ANGELES, April 3 - Bayou International Ltd said it
acquired 19.9 pct of <Amalgamated Equities Ltd> of Australia
for 710,000 dlrs.
    Bayou is 55.2 pct owned by <Australia Wide Industries Ltd>.


.I 2110
.C
earn
.W
NETWORK <NETW> TO TAKE 3RD QTR CHARGE.
    DANBURY, Conn., April 3 - Network Control Corp said it
intends to take a 250,000 dlr charge against earnings for the
third quarter ended March 31 and said sales for the quarter
would be about 400,000 dlrs, about 50 pct below sales in the
same year-ago quarter.
    Network said it is taking the charge due to the significant
increase in accounts receivable which remain uncollected for
more than 90 days after billing. It said it ultimately will
collect most of those accounts.
    It attributed the sales decline to a transition period for
its new products and a delay in a major order.


.I 2111
.C
crude
.W
PETROBRAS SEES RAISING EXPORT OF FUEL IN 1987.
    RIO DE JANEIRO, April 3 - Brazil's state oil company
Petrobras is pledging to export 4.6 mln cubic meters of fuel,
or 28.9 mln barrels in 1987, a company spokesman said.
    He said that represents a total sale worth 600 mln dlrs.
The volume is 27 pct higher over 1986 sales, which totalled 3.6
mln cubic meters, or 22.6 mln barrels.
    The United States, Africa and Latin American are Brazil's
main fuel buyers, the spokesman said.


.I 2112
.C
money-supply
.W
******U.S. BUSINESS LOANS FELL 822 MLN DLRS IN MARCH 25 WEEK, FED SAYS.
Blah blah blah.

.I 2113
.C
interest
.W
BAKER REPEATS HE HOPES PRIME HIKE TEMPORARY.
    WASHINGTON, April 3 - Treasury Secretary James Baker
reiterated his hope that this week's rise in prime rates would
be a temporary blip upwards.
    "I would hope that it would simply be a temporary blip
upward as we've seen in the past," Baker said in television
interview with the Cable News Network. The interview airs
tomorrow but CNN released extracts from his remarks today.
    Baker also repeated his position that the reaction of
financial markets to U.S. tariffs on Japanese electronic goods
showed "the importance of the United States not going
protectionist. The markets were telling us...be careful."


.I 2117
.C
earn
.W
E AND B MARINE <EBMI> 4TH QTR NET.
    EDISON, N.J., April 3
    Shr loss 1.65 dlrs vs loss 24 cts
    Net loss 3,259,000 vs loss 470,000
    Revs 16.0 mln vs 9,510,000
    12 mths
    Shr loss 84 cts vs gain 63 cts
    Net loss 1,661,000 vs gain 1,301,000
    Revs 80.5 mln vs 56.4 mln


.I 2118
.C
livestock;carcass;
.W
U.S. MEAT PROCESSORS ASK FOR LABELLING CHANGE.
    WASHINGTON, April 3 - Four U.S. meat processors have asked
the federal government to relax a labelling requirement which
they said discourages the use of mechanically separated meat,
the U.S. Agriculture Department said.
    The petition, filed by Bob Evans Farms, Odom Sausage Co,
Sara Lee Corp and Owens Country Sausage, asks USDA to allow
mechanically separated meat to be listed on product labels as
the species from which it was derived.
    For example, "pork" would be listed on the ingredients
statement instead of "mechanically separated pork."
    Under the petition, the calcium content of the meat product
would have to be stated on the label and the mechanically
separated meat could constitute no more than 10 pct of the meat
and poultry portion of the product.
    Mechanically separated meat is a high-protein, low-cost
product that has been approved for use since 1978, USDA said.
    Current regulations allow use of mechanically separated
ingredients at levels up to 20 pct of the meat and poultry
product, but require it to be listed in the ingredient
statement as "mechanically separated (species)," USDA said.
    USDA said the petitioning firms claimed companies avoid
using mechanically separated meat in their products because the
term carries an "unwarranted negative connotation" in the minds
of many consumers. The petitioners also noted that no similar
regulation exists for poultry products.
    Mechanically separated meat is made by placing carcass
parts, which usually have been hand-trimmed but still have some
remaining meat, into specialized processing equipment.


.I 2120
.C
acq
.W
IROQUOIS BRANDS <IBL> REBUFFS LYON FOODS CLAIMS.
    GREENWICH, Conn, APril 3 - Iroquois Brands Ltd said it has
been sued by Lyon Food Cos Inc which is seeking 2.3 mln dlrs in
damages in connection with the April 1986 nine mln dlrs
purchase of Iroquois' former specialty food products segment.
    Iroquois said that based upon the defenses it will assert,
it does not believe that any charge against income is required
as a result of the claim.


.I 2126
.C
money-supply
.W
FEBRUARY FOMC VOTES UNCHANGED MONETARY POLICY.
    NEW YORK, April 3 - The Federal Open Market Committee at
its February 10-11 meeting voted nine to one to maintain the
then-existing degree of reserve restraint, minutes showed.
    The FOMC issued an asymmetric inter-meeting policy
directive which gave greater possibility to firmer rather than
easier policy. The Committee set a six to seven pct January
through March annualized growth target for M-2 and M-3 and no
M-1 goal. At the prior meeting in mid-December, the FOMC set a
seven pct target for M-2 and M-3 for November through March.
    The February FOMC kept the four to eight pct Federal funds
rate "reference" range for policy, as in other recent meetings.
    At a telephone conference on February 23, committee members
discussed the possible implications of the decisions reached in
Paris for U.S. intervention in foreign exchange markets. No
conclusions were contained in the minutes.
    In its inter-meeting policy directive, the February FOMC
said that "somewhat greater reserve restraint would, or
slightly lesser reserve restraint might, be acceptable
depending on the behavior of the aggregates, taking into
account the strength of the business expansion, developments in
foreign exchange markets, progress against inflation, and
conditions in domestic and international credit markets."
    The February FOMC voted nine to one for an unchanged
policy. Thomas Melzer, St Louis Federal Reserve Bank president
favored some tightening of reserve conditions.
    He noted the strong growth in bank loans in November
through January and the firm federal funds rate that had
prevailed despite the extraordinary pace of reserve growth. He
also cited the recent declines in the dollar's value.
    Finally, looking ahead, Melzer pointed out the potential
for a further rise in inflationary expectations. He believed
that prompt restraints might avert the need for more
substantial tightening later.
    Regarding inter-meeting policy adjustments, the FOMC
minutes showed, "the members generally felt that policy
implementation should be especially alert to the potential need
for some firming of reserve conditions."
    In this view, the FOMC said somewhat greater reserve
restraint would be warranted if monetary growth did not slow in
line with current expectations and there were concurrent
indications of intensifying inflationary pressures against the
background of stronger economic data.
    One indication of potential price pressure might be a
further tendency for the dollar to weaken.
    The minutes showed that one member, presumably Melzer,
preferred a directive that did not contemplate any easing
during the weeks ahead. However, "most of the members did not
want to rule out the possibility of some slight easing during
the inter-meeting period, although they did not view the
conditions for such a move as likely to emerge."
    The FOMC members assumed that future fluctuations in the
dollar's value would not be of sufficient magnitude to have any
significant effect on the Fed's economic projections. In
addition, they anticipated that considerable progress would be
made in reducing the federal budget deficit.


.I 2127
.C
money-supply
.W
FEDERAL RESERVE BUSINESS LOAN DATA - APRIL 3.
     One week ended March 25   daily avgs-mlns
 U.S. Business Loans......280,220 down......971
 Excluding Acceptances....277,940 down......822
 Govt, agency securities..112,852 down.......95
 CDs/major time deposits..158,226 down......175
 Trading accounts .........17,156 down... 1,058
 U.S. commercial paper....338,816 down......210
 Includes financial cos...261,819 down......880
 New York business loans...64,615 down......122
 Excluding acceptances.....64,005 down.......41
 CDs/major time deposits...35,633 down......540



.I 2128
.C
money-supply
.W
U.S. BUSINESS LOANS FELL 822 MLN DLRS.
    WASHINGTON, April 3 - Business loans on the books of major
U.S. banks, excluding acceptances, fell 822 mln dlrs to 277.94
billion dlrs in the week ended March 25, the Federal Reserve
Board said.
    The Fed said that business loans including acceptances fell
971 mln dlrs to 280.22 billion dlrs.


.I 2131
.C
ship;grain;
.W
ARGENTINE GRAIN SHIPMENTS IN THE WEEK TO APRIL 1.
    BUENOS AIRES, April 3 - The Argentine Grain Board issued
the following figures covering shipments of major export grains
in the week to April 1, in tonnes, with comparisons for the
previous week and the same week in 1986.
    Bread wheat        235,800    205,700    115,500
    Maize              158,400    189,000    272,700
    Sorghum             26,500     18,700     39,900
    Soybean                nil        nil        nil
    Sunflowerseed        1,800     18,800        nil
    Cumulative figures for April 1 and this calendar year, with
the previous year's figures in brackets, are as follows, in
thousands of tonnes:
    Bread wheat        64.3   (44.5),    3,074.4   (2,851.4)
    Maize              48.3  (107.7),      486.1     (922.4)
    Sorghum             5.1   (22.2),      108.1     (188.8)
    Soybean             nil    (nil),        nil       (nil)
    Sunflowerseed       0.9    (nil),       43.2       (nil)


.I 2132
.C
acq
.W
TEXAS AMERICAN <TXA> BANKS TO BE MERGED.
    FORT WORTH, Texas, April 3 - Texas American Bancshares Inc
said three of its Texas American banks will be merged into
Texas American Bank/Galleria.
    The corporation said the Spring Branch, Fonderen and
Gulfway Texas American banks will become separate banking
offices of TAB/Galleria.


.I 2134
.C
earn
.W
BIW CABLE SYSTEMS INC <BIWC> 4TH QTR LOSS.
    BOSTON, April 3 -
    Shr loss 1.50 dlrs vs loss 14 cts
    Net loss 3,395,933 vs loss 318,225
    Revs 8,963,097 vs 12.6 mln
    Year
    Shr loss 2.93 dlrs vs profit two cts
    Net loss 6,613,327 vs profit 49,421
    Revs 44.4 mln vs 48.7 mln
    NOTE: Current periods include 2.2 mln dlr charge for
possible obsolete inventory and provision of 356,000 dlrs for
consolidation of cable manufacturing plant.


.I 2137
.C
acq
.W
DOE ISSUES OFFER TO BUY ALASKA POWER UNIT.
    WASHINGTON, April 3 - The U.S. Energy Department issued a
request for proposals to buy the Snettisham Hydroelectric
project, a major part of the Alaska Power Administration.
    It said invitations were sent to two Alaskan electric
utilities, the city and borough of Anchorage and the state of
Alaska.  It did not cite a possible purchase prices.
    The requests were limited to Alaskan entities because the
purpose of privatization of the administration was to put the
local utility into the hands of a local body, the DOE said.
    It added that proposals are due back by August three.
    The DOE said it then had 120 days to select a proposal that
it would recommend to Congress, which then would vote the
recommendation up or down.
    Proposals to buy the other major part of the Alaska Power
Administration, the Eklutna project, was expected to be issued
in early June, it said.


.I 2139
.C
coffee
.W
IBC COULD CLOSE MAY EXPORT REGISTRATIONS TONIGHT.
    RIO DE JANEIRO, April 3 - The Brazilian Coffee Institute
(IBC) could close May export registrations tonight following
extremely heavy sales today, exporters said.
    They estimated registrations today at between 1.0 mln and
1.2 mln 60 kilo bags. Yesterday 645,000 bags were registered.
    The exporters said over 1.0 mln bags of total registrations
could have been the declaration of sales made in the six weeks
during which books were closed. The rest would be new sales.
    When the IBC opened May registrations from yesterday it did
not set any volume limit. April registrations opened and closed
on February 16 when a daily record 1.68 mln bags were declared.


.I 2141
.C
cpi
.W
PERU CONSUMER PRICES RISE 5.3 PCT IN MARCH.
    Lima, april 3 - peru's consuemr price index rose 5.3 pct
last month to 13,914.4 (base 100) following a 5.3 pct increase
in february and 5.3 pct rise in march 1986, the national
statistics institute said.
    It said that the accumulated inflation for the first three
months of 1987 was 18.5 pct compared to 15.4 pct for the same
period last year.
    Inflation for the 12-month period ending march 1987 was
67.4 pct compared to 120.8 pct for the 12-month period ending
march 1986.


.I 2142
.C
oilseed;grain;corn;soy-oil;
.W
ARGENTINE GRAIN/OILSEED EXPORT PRICES ADJUSTED.
    BUENOS AIRES, April 3 - The Argentine Grain Board adjusted
minimum export prices of grain and oilseed products in dlrs per
tonne FOB, previous in brackets, as follows:
    Maize 71 (72), grain sorghum 65 (66).      
    Roasted groundnutseed, according to grain size, 510 (520),
400 (410), 375 (385), 355 (365).               
    Soybean pellets for shipments through May 164 (162) and
June onwards 161 (159).


.I 2143
.C
earn
.W
WAREHOUSE CLUB <WCLB> TO TAKE CHARGE.
    CHICAGO, April 3 - Warehouse Club Inc said it expects to
take a one-time charge of about five mln dlrs on its June 30
third quarter results from closing of two unprofitable Chicago
area units.
    The company said it will continue to operate 12 warehouses
in Illinois, Indiana, Michigan, Ohio and Pennsylvania.
    It added that it expects future operating results to be
improved because of the closing of the two warehouses.


.I 2144
.C
acq
.W
SCI <SCIS> BUYS FORTUNE <FSYS> COMPUTER ASSETS.
    BELMONT, Calif., April 3 - Fortune Systems Corp and SCI
Systems Inc said they signed a letter of intent covering the
purchase of Fortune's microcomputer business assets for an
unspecified amount of cash.
    Fortune Systems makes a desktop computer systems.


.I 2148
.C
palm-oil;oilseed;ship;wheat;grain;corn;rapeseed;soy-oil;
.W
EXPORT BUSINESS - GRAINS/OILSEEDS COMPLEX.
    CHICAGO, April 3 - Grain and oilseed complex export
business reported since yesterday by government agencies and
private exporters -
    Japanese crushers bought 4,000 to 5,000 tonnes of Canadian
rapeseed in export business overnight for May shipment...Greece
has agreed to buy 27,000 to 33,000 tonnes of Spanish corn for
spot shipment, with Italy buying 6,000 to 7,000 tonnes of
Spanish corn for last/half April shipment, a spokesman for
cargill's spanish unit said...Taiwan bought 54,000 tonnes of
U.S. soybeans for April 20/May 5 delivery C and F...
    (Continued) - The India State Trading Corp bought 20,000
tonnes of optional origin soybean oil for May 20/June 20
shipment and 6,000 tonnes of RBD palm olein for April 25/May 25
shipment at its import tender yesterday...Pakistan rejected
offers at its tender for 12,000 tonnes of RBD palm oil, but is
expected to retender next week...The U.S. Department of
Agriculture (USDA) said it has accepted a bid for an export
bonus to cover the sale of 50,000 tonnes of U.S. hard red
winter wehat to Sri Lanka for April 8/16 shipment, with an
additional 10,000 tonnes of wheat still available to Sri Lanka
under the Export Enhancement Program (EEP)...
    (Continued) - The USDA said it has accepted a bid for an
export bonus to cover the sale of 18,000 tonnes of U.S. durum
wheat to Algeria for June 20/30 shipment, with an additional
228,000 tonnes still available to Algeria under the EEP.
    Tenders - Jordan will tender Monday, April 6, for 225,000
tonnes of U.S. hard and soft wheats for various April/Nov
shipments under the EEP.
    Market talk and comment - The USDA said Turkey has been
made eligible for the sale of up to 70,000 tonnes of medium
grain milled rice under the EEP...
    Market talk and comment (continued) - The USDA announced
Colombia has been made eligible for sale of up to 15,000 tonnes
of U.S. barley malt under the EEP...The Canadian Grain
Commission reported Canadian wheat exports in the week ended
March 29 totalled 447,200 tonnes, compared with 277,700 the
previous week, with 1986/87 season exports so far up to
10,228,600 tonnes versus 10,637,500 for the 1985/86 season,
with barley exports 38,800 tonnes, 106,700 tonnes, 4,804,500
and 1,892,600 respectively, rapeseed 43,900 tonnes, 50,700
tonnes, 1,292,600 and 920,000 respectively and flaxseed 20,700
tonnes, 13,600 tonens, 450,900 and 392,600 respectively...
    Market talk and comment (continued) - Pakistan is not
emerging as a major wheat exporter as World market prospects
are not good enough, a government official said...Active
timecharter fixing by Soviet operators to cover USSR grain
imprts featured the ocean freight market this morning, ship
brokers said...Dry cargo futures on the BIFFEX extended
yesterday's strong advance, with sharp gains of 22 to 17 points
in response to rumors of higher rates for grain business from
the U.S. Gulf to Japan, dealers said.


.I 2149
.C
earn
.W
CULLEN/FROST <CFBI> TO OMIT DIVIDEND.
    SAN ANTONIO, Texas, April 3 - Cullen/Frost Bankers Inc said
it will defer paying a cash dividend for the next 12 months,
due to the economic slump in the Texas economy. It previously
paid a five cents a share dividend in recent quarters.
    It also said its first quarter earnings ended March 31,
which it said it will release later this month, will be similar
to its fourth quarter earnings last year.
    In 1986 the company reported a loss of 6,565,000 dlrs or 91
cts a share.


.I 2151
.C
acq
.W
INVESTOR GROUP CUTS ROSPATCH <RPCH> STAKE.
    WASHINGTON, April 3 - A group of New York investors said it
lowered its stake in Rospatch Corp to 170,250 shares, or 7.0
pct of the total outstanding common stock, from 202,108 shares,
or 8.3 pct.
    In a filing with the Securities and Exchange Commission,
the group said it sold a net 31,858 shares of Rospatch common
stock between February  2 and March 31 at prices ranging from
21.50 to 25.13 dlrs a share.
    The group includes Brookehill Equities Inc, a brokerage
firm, and Moore, Grossman and deRose Inc, an investment
advisor.



.I 2153
.C
crude
.W
COLOMBIA'S MAIN OIL PIPELINE ATTACKED.
    BOGOTA, April 3 - State-run oil company Ecopetrol said
Colombia's main oil pipeline was bombed again and pumping of
170,000 barrels per day was suspended.
    A spokeswoman for the company said that the early morning
dynamite attack was the 31st in the last nine months on the
Cano Limon-Covenas pipeline, which links Colombia's biggest
oilfied at Cravo Norte to the Caribbean.
    She said about 2,000 barrels of crude were spilled and
could not indicate when pumping would resume. The attack was
near Magangue in northeastern Bolivar province.
    Ecopetrol is exploiting Cravo Norte in association with
Occidental Petroleum Corp <OXY> and Shell Petroleum N.V., a
unit of the Royal Dutch/Shell Group <RD> <ST>.
    Ecopetrol said in a communique that bombings since last
July led to a loss of more than 110,000 barrels of crude, or
the equivalent of 10 mln dlrs.


.I 2154
.C
tin
.W
U.S. DEFENDS STOCKPILED TIN SALES IN 1986.
    WASHINGTON, April 3 - The United States defended its sales
of stockpiled tin in 1986 in reaction to criticism from
Malaysian miners who have said it violated an agreement with
southeast Asian producers.
    "The United States has continued to abide by the spirit of
the memorandum of understanding and has consulted with the
ASEAN states on GSA tin disposals," a State Department spokesman
said in a statement.
    "The views of the ASEAN governments have been taken into
account in determining disposal levels," the statement said.
    The United States and the ASEAN countries signed a
memorandum of understanding concerning tin disposals by the
U.S. General Services Administration (GSA) in December 1983.
    In its latest annual report, the States of Malaya Chamber
of Mines said the GSA sold 5,490 tonnes of tin in 1986, well
above an agreed upon annual limit of 3,000 tonnes. "The United
States appears to have lost sight of the U.S./ASEAN Memorandum
of Understanding," it said.
    The State Department statement said GSA tin disposals
increased in calendar year 1986 due to changed market
conditions. During the first quarter of calendar year 1987,
they have been running at a lower rate compared to 1986.
    The spokesman declined to say how much stockpiled tin the
GSA sold last year, however.


.I 2155
.C
earn
.W
LOCTITE <LOC> SEES BETTER THAN EXPECTED NET.
    NEWINGTON, Conn., April 3 - Loctite Corp said it expects
third quarter earnings to be higher than security analysts'
forecasts of 75 to 80 cts a share.
    Last year the company earned 53 cts per share in the third
quarter.
    It attributed its better than expected forecast to sales
growth, which it said were particularly strong overseas. It
also said it will have a lower effective tax rate.


.I 2156
.C
earn
.W
TIME <TL> SEES DILUTION FROM SCOTT, FORESMAN.
    NEW YORK, April 3 - Time Inc said the acquisition of Scott,
Foresman and Co last year will dilute earnings per share by
about 17 cts a share for the full year in 1987.
    For the first quarter the acquisition will have a negative
impact of about 20 cts per share, chief financial officer
Thayer Bigelow told security analysts.
    He said Scott, Foresman, a textbook publisher, will
contribute more than 50 mln dlrs in operating income before
depreciation and amortization for the full year.
    N.J. Nicholas, president and chief operating officer, said
Soctt Foresman will have over 200 mln dlrs in revenue in 1987.
    Bigelow said the textbook business, which normally has its
highest profit in the third quarter and incurs a loss in the
first quarter, will have an "adverse impact of 15 mln dlrs' on
book publishing income for the first quarter.
    "First quarter performance for the rest of Time Inc will be
better than last year," Bigelow said.
    The dilution of 17 cts per share for 1987 includes the
effects of financing the acquisition. Bigelow also said the
company is "comfortable" with estimates that earnings will be
between 3.75 dlrs and 4.25 dlrs per share for the year.


.I 2157
.C
acq
.W
CYACQ TERMINATES TENDER FOR CYLCOPS <CLY>.
    DAYTON, OHio, April 3 - CYACQ Corp said it terminated its
February six tender offer for Cyclops Corp.
    CYACQ was unsuccessfully bid against Dixons Group Plc for
control of Cyclops. As of March 27, Dixons Group Plc had
acquired more than 80 pct the stock under an increased tender
offer.


.I 2158
.C
acq
.W
INVESTOR LIFTS MYERS <MYR> STAKE TO 12.1 PCT.
    WASHINGTON, April 3 - Leonard Chavin, a Chicago real estate
developer who has said he is considering seeking control of
L.E. Myers Co Group, said he raised his stake in the company to
273,100 shares, or 12.1 pct, from 219,600, or 9.7 pct.
    In a filing with the Securities and Exchange Commission,
Chavin said he bought 53,500 Myers common shares between March
10 and 31 at prices ranging from 5-1/2 to six dlrs a share.
    Last January, Chavin said he retained investment banker
R.G. Dickinson and Co to advise him on his Myers stock
dealings. He has also said he would be unable to seek control
of Myers unless he gets financing.


.I 2159
.C
coffee
.W
IBC REGISTERS 1.4 MLN BAGS OF EXPORT SALES.
    RIO DE JANEIRO, April 3 - The Brazilian Coffee Institute
today registered 1.4 mln 60 kilo bags of green coffee for May
shipment, an IBC statement said.
    This brings the total in the two days registrations have
been open to 2.05 mln, including 4,868 bags of soluble.
    Today's registrations comprised 1,076,226 bags to members
and 326,259 to non-members of the International Coffee
Organisation. No soluble sales were registered today.


.I 2160
.C
earn
.W
U.S. COMPANY EARNINGS HIGHLIGHTS.
    New York, april 3 - First Quarter
 Anchor Financial Corp shr 31 cts vs 31
 Nine Months
 Biomet Inc shr 49 cts vs 36
 Federal Co shr 3.55 dlrs vs 1.66
 Richardson Electronics shr 59 cts vs 53
 Year
 Eac Industries Inc oper shr loss 65 cts vs
 loss 97 cts
 Fine Art Acquisitions shr 15 cts vs 10
 Mangood Corp oper shr loss 6.07 dlrs vs  loss  7.64


.I 2161
.C
earn
.W
FREEDOM SAVINGS AND LOAN ASS'N <FRDM> YEAR END.
    TAMPA, Fla., April 3 -
    Shr loss 31.09 dlrs vs loss 1.86 dlrs
    Net loss 112.7 mln vs loss 5.5 mln
    NOTE: 1986 loss includes operating loss of 109.4 mln dlrs
or 30.21 dlrs a share, including an additional loan loss
provision of 68 mln dlrs, write downs in the value of real
estate of 13 mln dlrs and an extraordinary loss of 3.3 mln dlrs
for early retirement of long-term debt.


.I 2164
.C
acq
.W
INVESTOR MULLS KAPPA<KPA>-RADIATION<RADS> MERGER.
    WASHINGTON, April 3 - Michael Krupp, a Golden, Colo.,
businessman and major shareholder of Kappa Networks Inc, said
he and Kappa's management are considering seeking a merger
between Kappa and Radiation Systems Inc.
    In a filing with the Securities and Exchange Commission,
Krupp said companies he controls and Kappa acquired a combined
292,000 Radiation System shares, or 5.25 pct of the total.
    Krupp, who has a 24.4 pct stake in Kappa, said he and Kappa
management believe a Kappa-Radiation Systems combination would
be good for both companies. But no decision has been made on
whether or how to proceed with a merger attempt, he added.


.I 2165
.C
acq
.W
OLIN <OLN> UNIT ACQUIRES IMAGE TECHNOLOGY.
    WEST PATERSON, N.J., APril 3 - Olin Corp's Olin Hunt
Specialty Products Inc said it acquired Image Technology Corp
for undisclosed terms.
    Image Technology makes chemicals for the semiconductor
industry.


.I 2166
.C
acq
.W
KEY CENTURION <KEYC> TO BUY BANK OF BUCKHANNON.
    CHARLESTON, W. VA., April 3 - Key Centurion Bancshares Inc
said it reached an agreement in principle to acquire Central
National Bank of Buckhannon, in W. Virginia.
    Terms call for an exchange of 2.75 shares of Centurion
shares for each share of Central National. The transaction is
valued at 16.2 mln dlrs.


.I 2167
.C
acq
.W
STURM, RUGER SUBMITS BID FOR SMITH AND WESSON.
    SOUTHPORT, Conn, APril 3 - Sturm, Ruger and Co Inc said it
submitted a bid in excess of 60 mln dlrs for Smith and Wesson,
a manufacturer of law enforcement firearms, and a unit of Lear
Siegler.
    Smith and wesson is among a number of companies being sold
by Forstman and Little after its recent acquisition of Lear
Siegler.


.I 2169
.C
acq
.W
FREEDOM SAVINGS <FRDM> MAY SEEK SALE OR MERGER.
    TAMPA, Fla., April 3 - Freedom Savings and Loan Association
said it may seek a possible sale or merger of the association
as it reported a net loss of 112.7 mln dlrs or 31.09 dlrs a
share for 1986.
    The loss included a number of charges, including additions
to its loan loss provision of 68 mln dlrs and write-downs on
the value of its real estate of 13 mln dlrs.
    It said it is continuing to work with investment bankers to
find sources of new capital, return its non-performing assets
to earning status, and reduce operating expenses and
liabilities, among other things.


.I 2170
.C
crude
.W
BRAZIL MAKES SECOND AMAZON OIL DISCOVERY.
    BRASILIA, April 3 - The Brazilian state oil company
Petrobras has made a second oil discovery in the Amazon region,
President Jose Sarney said.
    He said the well had an initial flow of 150,000 cubic
meters of gas and 220 barrels of oil per day. It is situated 14
kilometres from the first well to be discovered in the region
last year, which is currently yielding 500,000 cubic meters of
gas and 900 barrels of oil daily.
    The wells, the biggest onshore well in the country, are on
the banks of the river Uruc in the Amazon basin 3,600
kilometres (2,250 miles) north of Brasilia.


.I 2171
.C
coffee
.W
IBC CLOSES EXPORT REGISTRATIONS - EXPORTERS.
    RIO DE JANEIRO, April 3 - The Brazilian Coffee Institute
(IBC) tonight closed export registrations, exporters said.
    They said they heard of the closure from IBC officials but
no officials could be reached immediately for confirmation.
    Earlier an IBC statement said registrations for May, the
only month which was open, today totalled 1.4 mln bags of 60
kilos to bring the total registered for the month to 2.05 mln.


.I 2173
.C
earn
.W
TELEBYTE TECHNOLOGY INC <TBTI> YEAR.
    GREENLAWN, N.Y., APril 3  -
    Shr loss 10 cts vs loss 13 cts
    Net loss 197,779 vs loss 245,190
    Revs 4.0 mln vs 3.1 mln


.I 2174
.C
earn
.W
HOUSTON OIL ROYALTY TRUST <RTH> DISTRIBUTION.
    HOUSTON, APril 3 -
    MONTHLY dist 2.1 cts vs 2.1 cts prior
    Payable April 25
    Record April 15


.I 2175
.C
acq
.W
PUBLISHERS EQUIPMENT <PECN>, TRENTONIAN IN DEAL.
    DALLAS, April 3 - Publishers Equipment Corp said it reached
an agreement to incorporate flexo printing technology into The
Tentonian, an Ingersoll newspaper in Trenton, N.J.
    It said that mid-1988 will be the target date for start-up
for the new equipment which will double the size of its present
press.


.I 2176
.C
acq
.W
GABELLI GROUP CUTS GENCORP <GY> STAKE TO 6.3 PCT.
    WASHINGTON, April 3 - A group led by New York investor
Mario Gabelli told the Securities and Exchange Commission it
cut its stake in Gencorp Inc to 1,410,184 shares, or 6.3 pct of
the total, from 1,626,233 shares, or 7.3 pct.
    The Gabelli group said it sold 216,049 Gencorp common
shares between March 20 and 30 at prices ranging from 108.75 to
114.75 dlrs a share.


.I 2179
.C
acq
.W
GABELLI EXPLAINS SALE OF GENCORP <GY> SHARES.
    NEW YORK, April 3 - Mario Gabelli, head of New York
investment firm Mario Gabelli and Co, said he sold some shares
of GenCorp Inc <GY> as part of a "portfolio rebalancing"
process to meet the needs of his more than 600 clients.
    He said as the stock moved up following acquisition
proposals from a group formed by AFG Industries Inc <AFG> and
Wagner and Brown, some of his clients were overweighted.
    Regarding the company's shareholders meeting Tuesday,
Gabelli told Reuters, "there was nothing said that caused me to
sell or buy." He still thinks "values are 140 dlrs per share or
more" and has clients that asked to buy more.
    Gabelli said he amended certain filings with the Securities
and Exchange Commission because his clients are now passive
investors. "We wanted to remove our clients from the process
unfolding between GenCorp and Wagner and Brown," he said.
    He said he was pleased that chairman A. William Reynolds
stated at the meeting that he found the concept of greenmail to
be "repugnant." Greenmail refers to a corporation buying out a
shareholder at a premium not available to others.


.I 2180
.C
acq
.W
INVESTOR BOOSTS FIRST WESTERN <FWES> STAKE.
    WASHINGTON, April 3 - Poul Erik Moller, a Santa Monica,
Calif., investor said he raised his stake in First Western
Financial Corp to 412,000 shares, or 6.5 pct of the total
outstanding common stock, from 347,000 shares, or 5.5 pct.
    In a filing with the Securities and Exchange Commission
Moller said he bought 65,000 First Western common shares
between Jan 20 and March 26 at prices ranging from 10.000 to
10.625 dlrs a share.
    Moller said he bought the stock as a long-term investment
and may buy more, but has no plans to seek control of the
company.


.I 2181
.C
acq
.W
INVESTOR BOOSTS FIRST WESTERN <FWES> STAKE.
    WASHINGTON, April 3 - Poul Erik Moller, a Santa Monica,
Calif., investor said he raised his stake in First Western
Financial Corp to 412,000 shares, or 6.5 pct of the total
outstanding common stock, from 347,000 shares, or 5.5 pct.
    In a filing with the Securities and Exchange Commission
Moller said he bought 65,000 First Western common shares
between January 20 and March 26 at prices ranging from 10.000
to 10.625 dlrs a share.
    Moller said he bought the stock as a long-term investment
and may buy more, but has no plans to seek control of the
company.


.I 2183
.C
earn
.W
<COMTERM INC> YEAR JAN 31 LOSS.
    MONTREAL, April 3 -
    Oper shr loss 30 cts vs profit eight cts
    Oper net loss 5,887,996 vs profit 1,620,312
    Revs 32.4 mln vs 48.5 mln
    Note: 1987 net excludes extraordinary gain of 2.7 mln dlrs
or 14 cts shr from settlement of provision for discontinued
operations vs yr-ago tax gain of 562,248 dlrs or three cts shr.


.I 2192
.C
earn
.W
SABINE ROYALTY TRUST <SBR> SETS MONTHLY PAYOUT.
    DALLAS, April 3 - 
    Cash distribution 13.3 cts vs 8.4 cts prior
    Pay April 29
    Record April 15


.I 2193
.C
earn
.W
PROVIDENCE ENERGY CORP <PVY> REGULAR DIVIDEND.
    PROVIDENCE, R.I., April 3 -
    Qtly div 45 cts vs 45 cts prior
    Pay May 15
    Record April 24


.I 2194
.C
earn
.W
GULF STATES (GSU) SEES END TO CASH BY MAY.
    BEAUMONT, Texas, April 3 - Gulf States Utilities Co said
its condition has "significantly deteriorated" and that its
operating cash reserves will be inadequate by May 1987 unless
it receives additional financing or rate relief from state
public utilities commissions in Texas and Louisiana.
    In the company's newly-released annual report and 10-K
filing, Gulf States said its bank lenders had notified the
utility last month that no additional credit would be granted.
Gulf States said the banks had requested the utility to begin
making prepayments by the end of April of 45 mln dlrs more than
the estimated 1987 lease payments of 40 mln dlrs.
    "The circumstances increase the likelihood that the company
may have to seek protection from its creditors under the
bankruptcy code," Gulf States said.
    The utility had previously said it might be forced to
consider filing for bankruptcy because of limited rate
increases granted by state regulators in connection with Gulf
States' 4.3 billion dlr River Bend nuclear plant in Louisiana.
    "If the regulatory commissions approve the company's
proposed rate moderation plan and grant the increases provided
for in such plan during the initial three-year phase-in period,
the company believes it could achieve financial stability,"
Gulf States said.
    In February, the Texas Public Utilities Commission granted
Gulf States an interim rate increase of 39.9 mln dlrs
contingent upon the utility obtaining a new 250 mln dlr line of
credit to pay operating expenses. The utility had sought 144.1
mln dlrs in rate hikes in Texas.
    Gulf States has appealed a decision by Louisiana state
regulators rejecting its application for 100 mln dlrs in
emergency rate relief.
    In 1986, Gulf States earned 244.9 mln dlrs on revenues of
1.47 billion dlrs, compared to profits of 265.4 mln dlrs on
sales of 1.85 billion in the previous year.


.I 2199
.C
interest
.W
****** HK SHANGHAI BANK, STANDARD CHARTERED BANK RAISE PRIME ONE-HALF POINT TO 6.5 PCT.
Blah blah blah.

.I 2200
.C
interest
.W
HONG KONG BANKS RAISE PRIME ONE-HALF POINT TO 6.5 PCT.
    HONG KONG, April 4 - Hongkong and Shanghai Banking Corp and
Standard Chartered Bank raised their prime rate one-half point
to 6.5 pct, effective Tuesday, the Association of Banks said.
    The association said in a statement deposit rates have also
been increased by 1/4 to 1/2 percentage point.
    The banks last announced an adjustment on February 28 when
they raised the prime rate by one point to six pct.
    The deposit interest rates are now savings and 24 hours two
pct, seven-day call, one week and two weeks 2-1/4 pct, one
month and two months 2-3/4 pct, three and six months 3-1/4 pct,
nine months 3-1/2 pct and 12 months four pct.


.I 2201
.C
wpi
.W
SOUTH KOREAN WHOLESALE PRICES UP 0.2 PCT IN MARCH.
    SEOUL, April 4 - South Korea's wholesale price index, base
1980, rose 0.2 pct to 125.1 in March after a 0.2 pct rise in
February but was 0.6 pct lower than its March 1986 level, the
Bank of Korea said.
    The March consumer price index, same base, rose 0.5 pct to
146.0 after a 0.1 pct gain in February, for a year-on-year rise
of 1.7 pct.


.I 2203
.C
ipi
.W
INSTITUTE SEES W.GERMAN OUTPUT FALL IN 1987.
    MUNICH, April 5 - Production in the manufactured goods
industry has been falling since mid-1986 and will decline by
between one and two pct this year after a 2.5 pct increase in
1986, the Ifo economic institute said.
    An Ifo report said recessionary influences were affecting
the engineering industry particularly. It saw a decline of two
to three pct in this sector after a 5.2 pct rise in 1986.
    Orders, especially from abroad, were also falling sharply
for capital goods in the electronics sector, it added.
    Ifo also predicted stagnation in the automobile industry in
1987 after a particularly successful 1986 when production rose
5.1 pct.
    Chemical industry production, which fell by 0.9 pct last
year, was likely to stagnate or decline by one pct in 1987.
This sector suffered from slack demand from abroad and from low
domestic consumption.


.I 2207
.C
coffee
.W
IBC CLOSES EXPORT REGISTRATIONS - IBC OFFICIAL.
    RIO DE JANEIRO, April 5 - The Brazilian Coffee Institute
(IBC) confirmed having closed May export registrations,
effective April 6.
    On Friday night exporters said they had heard of the
closure from IBC officials, but the officials could not at the
time be reached for confirmation.


.I 2208
.C
money-fx
.W
LAWSON SAYS U.K. ELECTION NOT ONLY EMS BAR.
    KNOKKE-HEIST, Belgium, April 5 - British Chancellor of the
Exchequer Nigel Lawson said the next U.K. Election was not the
only element standing in the way of full British membership of
the European Monetary System (EMS).
    But he added that arguments against joining had weakened.
    Prime Minister Margaret Thatcher, widely believed to be the
strongest government opponent of full EMS membership, has made
clear she does not expect to consider joining until after the
next UK election, due by mid-1988 at the latest.
    But Lawson, in answer to a question, told reporters after
an informal European Community finance ministers' meeting here
that other factors apart from the upcoming election stood in
the way of full membership.
    In addition to the question of the exchange rates at which
Britain should enter the EMS's core exchange rate mechanism,
there was also the impact of sterling membership on the system
to be considered, he said.
    British entry would change the EMS from a monopolar system
based on the West German mark to a bipolar mark-sterling
system, he noted. "We have to make sure it would work."
    But Lawson added that some of the considerations that had
made it difficult for Britain to join in the past now posed
less of a problem.
    As an example he cited sterling's role as a petrocurrency,
which he said was diminishing. "That argument has clearly
weakened," he said.
    Lawson restated that the government was keeping the
question of membership under review.


.I 2209
.C
money-fx
.W
EC AGREES ON NEED TO STRENGTHEN EMS.
    By Tony Carritt, Reuters
    KNOKKE-HEIST, Belgium, April 5 - European Community (EC)
finance ministers and central bankers agreed on the need for
greater cooperation to strengthen the European Monetary System
(EMS) against international market turbulence, officials said.
    "There was a general will to reinforce the European Monetary
System, with all that implies," Belgian Finance Minister Mark
Eyskens said yesterday after hosting a one-day session of
informal talks at this Belgian coastal resort.
    The gathering was the first such discussion since the
second major realignment of EMS parities within nine months in
January.
    The system has come under severe strain as funds have
flowed out of the slumping dollar and into the dominant EMS
currency, the West German mark, sending it soaring against
weaker currencies in the system.
    But Eyskens said February's agreement between leading
western industrialised nations to stabilise exchange rates at
around current levels was working and this would allow the EC
to speed up its efforts to boost the internal stability of the
EMS.
    He told a news conference yesterday's meeting agreed on the
need for closer coordination among EMS member governments of
interest rate policies and of interest rate differentials
between different countries.
    They also agreed they needed better coordination of
exchange market intervention to hold currencies stable, both
when they reached their fixed EMS limits and within their
agreed margins.
    But Eyskens said this coordination raised a whole range of
technical problems and ministers would discuss these further in
Luxembourg in June on the basis of proposals from the EC's
Monetary Committee and Committee of Central Bank Governors.
    He said the EC needed a set of indicators of economic
convergence betwen Community countries and it was important
that interest rates fulfilled this role together with exchange
rates and inflation rates.
    The Belgian minister, whose country presently holds the
presidency of the community, made clear the meeting had not
produced any agreement to move radically forward in developing
the EMS towards the EC's long term goal of economic and
monetary integration.
    "We have committed ourselves to reestablishing the normal
functioning of the system," Eyskens said.
    Eyskens has repeatedly stressed that he believes the EMS
has to be reinforced if the EC's plans to liberalise all
movements of capital across national borders by 1992 are to go
ahead.
    EC executive Commission President Jacques Delors told the
meeting the authority would put forward proposals for a final
phase of capital market liberalisation in October that would
include safeguard clauses for member countries for which the
move would create difficulties.
    Eyskens said the ministers and central bankers also
discussed the need to "dedramatise" realignments of EMS parities
by letting high-ranking monetary officials carry them out by
telephone rather than calling a meeting of finance ministers.
    However, West German sources said Bonn Finance Minister
Gerhard Stoltenberg was unenthusiastic about the idea.
    British Chancellor of the Exchequer Nigel Lawson told
journalists that one of the technical issues raised by greater
coordination of exchange market intervention was the question
of which currencies should be used to intervene and held in
central bank reserves.
    He said several EMS member countries believed the EMS would
work better if central banks held each other's currencies -- an
issue of particular importance regarding West Germany since the
Bundesbank holds only dollars in its foreign exchange reserves.
    He said the debate on dedramatising EMS realignments
reflected a general feeling among participants that the way the
January reshuffle had been conducted was unsatisfactory.
   The realignment was marked by acrimony between France and
West Germany, with each side blaming the other for strains in
the system that forced the parity overhaul.


.I 2210
.C
money-fx
.W
ZAMBIAN CURRENCY FALLS AT FOREIGN EXCHANGE AUCTION.
    LUSAKA, April 5 - The Zambian currency further depreciated
yesterday at the second auction since the introduction of a
two-tier foreign exchange system last month.
    The (central) Bank of Zambia said the kwacha was pegged at
16.99 to the dollar, compared to last week"s rate of 15 to the
dollar.
    The bank, which offered six mln dlrs at the auction,
reported demand for 13.4 mln dlrs. At the previous auction, the
government offered eight mln dlrs.
    Last month the government set a fixed exchange rate of nine
kwacha per dollar, subject to adjustment against a basket of
five currencies, for certain official transactions.
    It also introduced a new weekly foreign exchange auction
only for parastatal organisations and the private sector, where
the exchange rate is allowed to float in accordance with market
demand.
    The new auction system is designed to be more restrictive
than the previous one, suspended in January after the central
bank fell 10 weeks in arrears to successful bidders.
    Under the new system, no bidder, except the the state oil
company Zimoil and the national airline Zambia Airways, is
allowed to bid for more than five pct of the foreign exchange
on offer.


.I 2212
.C
ship
.W
U.S. NAVY SAID INCREASING PRESENCE NEAR GULF.
    NEW YORK, April 5 - Defence Secretary Caspar Weinberger has
ordered the U.S. Navy to increase its presence near the Gulf in
an effort to fulfil President Reagan's pledge to keep oil
flowing to Europe and Japan, The New York Times reported.
    The newspaper quoted Pentagon officials as saying the Navy
would keep the aircraft carrier Kitty Hawk on station in the
Arabian Sea and the rest of the Indian Ocean until May, three
months longer than planned.
    The Navy would then have a carrier battle group of six to
eight warships in the area at all times rather than part of the
time, as happens now, the paper said.
    The paper said that last month U.S. Intelligence sources
said they had spotted land-based anti-ship missiles of a
Chinese design known in the West as the HY-2 near the Strait of
Hormuz.
    It said their purpose was seen as a signal Iran was ready
to continue and perhaps step up the Gulf shipping war against
Iraq.
    U.S. Carriers or battleships would sail out of range of
those missiles, but within striking distance, the paper quoted
officials as saying.
    From several hundred miles at sea, carriers could launch
aircraft bombing runs or missile strikes, and battleships could
fire long-range missiles, the paper said.


.I 2216
.C
strategic-metal
.W
ALGERIAN, SPANISH FIRMS AGREE QUICKSILVER PRICE.
    ALGIERS, April 5 - Algerian and Spanish producers which
together meet 40 pct of the Western market's needs in
quicksilver have agreed to apply a minimum selling price of 300
dlrs per unit, the Algerian news agency APS said.
    The agreement was made during a meeting here last week
between Algeria's Entreprise Nationale des Non-ferreux et
Substances Utiles (ENOF) and Spain's Almaden to discuss the
market situation.
    The two firms "took note with regret that prices quoted by
some specialised publications do not reflect the reality of the
whole market since they take into account only part of the
deals made," a statement by ENOF said.
    The result is that the prices quoted are far away from two
firms' production costs.
    "They have thus decided that their selling price would not
be linked any more to the prices quoted by these publications
and that sales would be made at a minimum price of 300 dlrs fob
per jar, which is close to their production cost," the statement
said.
    It added that Turkish producers would join in when the two
firms meet again in Madrid later this month.
    The price of quicksilver on the London Metal Exchange
hovered around 200 dlrs this week.


.I 2220
.C
reserves
.W
CHINA'S FOREIGN EXCHANGE RESERVES FALL DURING 1986.
    PEKING, April 5 - China's foreign exchange reserves
totalled 10.514 billion dlrs at end-1986, up from 10.37 billion
at end-September but down from 11.9 billion at end-1985,
according to central bank figures published by the New China
News Agency.
    The agency said 2.072 billion dlrs of the reserves was held
by the state treasury, down from 2.26 billion at end-September,
while 8.442 billion was held by the Bank of China, up from 8.11
billion.
    China's outstanding foreign debts rose to 7.572 billion at
end-1986 from 5.067 billion at end-1985. Gold reserves stood at
12.67 mln ounces, unchanged over the year.


.I 2221
.C
crude
.W
IEA SEES ONE PCT GROWTH IN 1987 OECD OIL DEMAND.
    PARIS, April 5 - Growth in oil consumption in the Western
industrialised countries is likely to slow to around one pct
this year compared with 2.3 pct in 1986, the International
Energy Agency (IEA) said.
    Oil use in the 24 countries of the OECD increased by around
one pct in first quarter 1987 to 35.9 mln bpd, the IEA said in
its Monthly Oil Market Report.
    Growth in OECD countries is expected to come primarily from
transport fuels, as in 1986. But if average consumer prices are
higher than 1986, the rate of growth for these fuels may be
below last year's 3.6 pct, it said.
    The IEA said that assuming crude oil and product prices
stay close to current levels, some destocking by end-users can
be expected. If that happens, natural gas will also regain some
of the market share it lost to heavy fuel in 1986, and there
may be slightly less growth in transport fuels.
    IEA estimates on April 1 put oil stocks in the OECD area at
428 mln tonnes, representing 98 days of forward consumption.
This is about the same level as at the begining of the year.
    The agency said this flat trend is explained by the
projected seasonal consumption decline in the second quarter of
the year which offset a reduction in stocks.
    It said initial estimates indicate that company stocks fell
by 1.2 mln bpd in OECD countries in the first quarter of the
year. This followed a small rise in January of 0.4 mln bpd but
a decline of 1.5 mln bpd in February and 2.5 mln bpd in March.
    It is possible that final data will show a larger draw,
particulary for March, it said. As crude production also fell,
there is likely to have also been a decline in non-reported
stocks, particularly at sea, the IEA said.
    Company stocks on land in the OECD rose to 326 mln tonnes
on April 1 against 316 mln on April 1 1986. Governments built
up strategic stocks to 102 mln tonnes against 97 mln in the
period.
    The year-on-year trend of government stock building is
continuing with year-on-year company stocks also rising, more
or less in line with consumption, after declining for five
years, the IEA noted.
    Oil stocks on land in the U.S. And Canada were put at 206.6
mln tonnes on April 1, down from the 214 mln tonnes on January
1 and equivalent to 94 and 98 days of consumption,
respectively.
    Oil stocks in Western Europe were 147.4 mln tonnes on April
1, down from the 154 mln on January 1 but still equivalent to
94 days of consumption.
    World oil supply fell in the first quarter by about two mln
bpd to 45.2 mln bpd from 47.2 mln bpd in last quarter 1986.
    This drop was mostly due to a decline in OPEC crude
production to around 15.5 mln bpd in February/March from 16.5
mln bpd in January and to the seasonal drop in exports from
centrally-planned Economies, the IEA said.
    Total OPEC crude oil supply was 15.8 mln bpd in the first
quarter, plus 1.4 mln bpd of NGLs, compared with 17.3 mln bpd
of crude in the last three months of 1986 and 17.9 mln average
for the whole of 1986. Supply from non-OPEC countries totalled
28 mln bpd, against 28.5 mln bpd in the fourth quarter 1986.
    A drop in Saudi Arabian output to a tentatively forecast
3.3 mln bpd in March from 3.6 mln bpd in February was the
largest factor behind the OPEC production decline, the IEA
said.
    Saudi Arabia"s Opec-assigned output quota is 4.133 mln bpd.


.I 2223
.C
gnp
.W
MARCH U.S. PURCHASING MANAGERS INDEX UP AT 53.9.
    NEW YORK, April 6 - The U.S. economy in March improved at a
faster rate than in February, with the National Association of
Purchasing Management's composite index rising to 53.9 pct from
51.9 pct, the NAPM said.
    The first quarter average for the index also was 53.9 pct.
The NAPM said that, if this average were to continue for the
rest of 1987, it would be consistent with real gross national
product growth of about three pct.
    An index reading above 50 pct generally indicates that the
economy is in an expanding phase. One below 50 pct implies a
declining economy.
    The NAPM said the economic improvement was evident in all
of the indicators in the index except inventories, which
declined slightly.
    New orders rose sharply in March, with production also
higher. Vendor deliveries slowed, another sign that the economy
improved in March. Employment expanded for the first time since
August 1984.
    Robert Bretz, chairman of the NAPM's business survey
committee and director of materials management at Pitney Bowes
Inc <PBI> said "the economy ended the first quarter with a
healthy, if not substantial improvement."
    Bretz said the sharp rise in the growth of new orders in
March assures a good beginning for the second quarter.
    Some 50 pct of the purchasing managers reported that they
were paying higher prices in March than at the end of 1986. Of
those paying higher prices now, the average increase was put at
2.5 pct.
    The estimated average price increase anticipated by members
for the remainder of 1987 is 2.1 pct. While prices continue to
rise, the NAPM said that most purchasers do not see them as
being significant.
    The composite index is a seasonally adjusted figure, based
on five components of the NAPM business survey - new orders,
production, vendor deliveries, inventories and employment.
    The monthly report is based on questions asked of
purchasing managers at 250 U.S. industrial companies.


.I 2226
.C
interest
.W
NATIONAL AUSTRALIA BANK LOWERS BENCHMARK PRIME.
    MELBOURNE, April 6 - National Australia Bank Ltd <NABA.S>
said it lowered its benchmark prime lending rate to 18.25 pct
from 18.5, effective today, but left its base rate at 18.5.
    The benchmark reduction brings the rate into line with the
prime rates of most of Australia's trading banks, including
those of two of the other three major trading banks.
    However, the rate is above the 18 pct - the lowest ruling
rate - set by the other major, the Australia and New Zealand
Banking Group Ltd <ANZA.S>, on Friday and effective today.
    The benchmark is based on short-term interest rate
movements while the base rate is tied to longer-term trends.


.I 2227
.C
earn
.W
CAESARS WORLD BOARD APPROVES RECAPITALIZATION.
    NEW YORK, April 5 - Caesars World Inc <CAW> said its
directors unanimously approved a recapitalization plan under
which stockholders will get a cash distribution of 25 dlrs per
share via a one-time special cash dividend and will retain
their common stock ownership in Caesars World.
    Caesars World said it expects to raise the approximately
one billion dlrs needed to pay the 25 dlr per share dividend
and the expenses of recapitalization through around 200 mln
dlrs in bank borrowings and a public sale of approximately 800
mln dlrs of debt. Some outstanding debt will be retired.
    Drexel Burnham Lambert Inc, Caesars' financial advisor, has
told the company it is confident it can arrange the entire
financing needed for the recapitalization.
    Henry Gluck, chairman and chief executive officer of the
hotel, casino and resorts company, said in a statement the
board believes the recapitalization plan is financially
superior to a 28 dlr a share tender offer by Martin Sosnoff.
    Gluck said the Caesars World board once again recommends
that shareholders reject the Sosnoff offer.
    The stock closed at 29.25 dlrs a share on Friday.
    "Our ability to restructure along these lines is possible
primarily because of the financial stability and the strong
operating results achieved by management in recent years," Gluck
said.
    He said that after the recapitalization takes effect,
proforma net income for the fiscal year ended July 31, 1988 is
expected to be about 28.7 mln dlrs.
    Fiscal 1988 primary earnings per share are projected to be
76 cents, based on about 37.8 mln in post-recapitalization
common and common-equivalent shares outstanding.
    Commenting on the company's longer term earnings outlook,
Gluck said "we project net income to increase to 86.2 mln dlrs
in 1992, reflecting increased operating income and lower
interest expense due to the retirement of 267 mln dlrs of debt
incurred in connection with the recapitalization."
    He said the company does not usually release projections,
but has done so now beause of the significance of the
recapitalization.
    Gluck said the recapitalization plan will be submitted for
stockholder approval at a special meeting expected in June.
    The plan will require the approval of stockholders and that
of the Nevada and New Jersey gaming regulatory authorities.
    As part of the plan, the company will change its state of
incorporation from Florida to Delaware by means of a merger of
Caesars World into a wholly owned subsidiary of the company.
    The new incorporation certificate and bylaws will provide
for, among other things, a "fair price" provision requiring that
certain transactions with interested 15 pct stockholders be
approved by an 80 pct vote of stockholders, excluding shares
held by such interested stockholders.
    Caesars World said in a statement that "the cash
distribution will result in a substantial deficit in
stockholders' equity." It did not give an estimate of the size
of this deficit.
    But the company said its financial advisors have said they
believe that after the recapitalization, Caesars World should
have the financial flexibility and resources necessary to
finance its current and projected operating and capital
requirements.


.I 2229
.C
acq
.W
AUSTRALIAN GAS LIGHT CO COUNTER-BIDS FOR TMOC.
    SYDNEY, April - <The Australian Gas Light Co> (AGL) said it
will offer one share plus one dlr cash for every two shares in
oil and gas producer <TMOC Resources Ltd> in a counter-bid to
the previously reported takeover offer by Santos Ltd <STOS.S>.
    The offer values TMOC shares at 4.75 dlrs each, based on
AGL's closing price of 8.50 dlrs on Friday. TMOC shares jumped
to 4.60 dlrs on the announcement from its Friday closing price
of 4.15.
    The AGL offer, the third to be made for TMOC this year,
compares with the Santos cash offer of 4.00 dlrs a share.
    Based on TMOC's issued capital of 62.08 mln shares, the AGL
offer values the entire company at 249.9 mln shares.
    AGL said in a statement that it already holds 10.5 pct of
TMOC's issued capital. This compares with the Santos stake of
3.1 pct when it announced its bid in March 23.
    <Elders Resources Ltd> began the auction for TMOC about
three months ago with an unsuccessful 2.55 dlrs a share
on-market offer that has since lapsed.
    AGL said its offer is above the upper end of the range of
values placed on TMOC by its advisers in the company's response
urging rejection of the Elders Resources bid.
    AGL said it will make the same offer for TMOC's convertible
notes. Accepting share and note holders will participate in
AGL's planned one-for-one bonus issue.
    It said TMOC is already a partner with AGL in the Alice
Springs to Darwin gas pipeline and has a number of businesses
complementary with those of AGL.
    AGL is the New South Wales natural gas utility while TMOC
has extensive onshore holdings, mainly in Queensland where it
owns the Moonie oil field and in the Northern Territory where
it operates and holds 43.75 of the Mereenie oil-gas field. It
also has interests in a number of gas or oil pipelines.


.I 2230
.C
crude
.W
IEA FORECASTS SLOWER GROWTH IN OECD OIL DEMAND.
    PARIS, April 5 - Growth in oil consumption in the Western
industrialized countries is likely to slow to around one pct
this year compared with 2.3 pct in 1986, the International
Energy Agency said.
    Oil use in the 24 member countries of the Organization for
Economic Cooperation and Development (OECD) increased by around
one pct in the first quarter of 1987 to 35.9 mln barrels a day,
the IEA said in its latest monthly report.
    Growth in OECD countries is expected to come primarily from
transport fuels, as was the case in 1986. But if average
consumer prices are higher than 1986, the rate of growth for
these fuels may be below last year's 3.6 pct.
    The IEA said assuming crude and product prices remain nar
current levels, some destocking by end-users can be expected.
    If that takes place, natural gas will also regain some of
the market share it lost to heavy fuel in 1986, it said.
    IEA estimates on April one put oil stocks held in the OECD
area at 428 mln tonnes, or 98 days of forward consumption. This
is about the same as at the begining of the year.
    The agency said this flat trend is explained by the
projected seasonal consumption decline in the second quarter of
the year which offset a reduction in stocks.
    Company stocks on land in the OECD rose to 326 mln tonnes
on April one this year compared with 316 mln tonnes in calender
1986 while governments also built up their strategic stocks to
102 mln tonnes against 97 mln in 1986.
    The year-on-year trend of government stock building is
continuing with company stocks rising, more or less in line
with consumption, after declining for five years, IEA said.
    Oil stocks on land in the United States and Canada were put
at 206.6 mln tonnes down from the 214 mln tonnes on January one
and equivalent to 94 and 98 days of consumption, respectively.
    Oil stocks in Western Europe were 147.4 mln tonnes, down
from the 154 mln tonnes on January one but still equivalent to
94 days of consumption.
    The IEA said that initial estimates indicate that company
stocks fell by 1.2 mln bpd in OECD countries in the first
quarter of the year. This followed a small rise in January of
400,000 bpd but a decline of 1.5 bpd in February and 2.5 bpd in
March.
    And it is possible that final data will show a larger draw,
particulary for March, it said.
    As crude production also fell, there is likely to have also
been a decline in non-reported stocks, particularly at sea, the
IEA said.
    World oil supply fell through the first quarter by about
two bpd to 45.2 bpd from 47.5 bpd in the last quarter of 1986.
    This drop was mostly due to a decline in OPEC crude
production to around 15.5 bpd in February/March from 16.5 bpd
in January and to the seasonal drop in exports from Centrally
Planned Economies, the IEA said.
    Total OPEC oil supply totalled 17.2 bpd in the first
quarter of 1987 compare with 19.3 bpd in the last three months
of 1986 while supply from non-OPEC countries totalled 28 bpd as
against 28.2 bpd in the same 1986 period.
    A drop in Saudi Arabian output to a tentatively forecast
3.3 bpd in march from 3.6 bpd in February was the largest
factor behind the OPEC production decline, the IEA said.


.I 2233
.C
coffee
.W
PHILIPPINE COFFEE EXPORTS SEEN FALLING SHARPLY.
     MANILA, April 6 - Philippine coffee exports are expected
to fall sharply due to a combination of the International
Coffee Organisation's (ICO) decision not to revive export
quotas and higher local prices, ICO Certifying Agency official
Dante de Guzman told Reuters.
    He said exporter registrations dropped from an average
weekly 500 tonnes in March to 45 tonnes last week, with exports
in coffee year 1986/87, ending September, forecast to total
about 8,000 tonnes against 48,000 in 1985/86.
     "Because of the relatively higher level of domestic prices,
it has become difficult to service exports," de Guzman said,
adding that most exporters are taking a wait and see attitude.
    Coffee production was expected to drop slightly to about
one mln bags of 60 kg each in the 1986/87 crop year ending June
from 1.1 mln bags last year, he said.


.I 2234
.C
money-fx
.W
MIYAZAWA SEES BIG NATIONS REAFFIRMING PARIS PACT.
    TOKYO, April 6 - Finance Minister Kiichi Miyazawa told a
parliamentary committee he expects major nations to reafffirm
the currency pact they struck in Paris when they meet this week
in Washington, political sources said.
    The Minister also was quoted as saying he expects major
nations to take coordinated action to ensure exchange rate
stability.
    Finance Ministry officials were unavailable for immediate
comment. In Paris on February 22, six nations - Britain,
Canada, France, Japan, the U.S. And West Germany - pledged to
cooperate to hold their currencies stable.


.I 2235
.C
cocoa
.W
LEADING COCOA PRODUCERS DISCUSS INTERNATIONAL PACT.
    YAOUNDE, April 6 - Leading cocoa producers will discuss
whether newly-agreed rules on an international cocoa buffer
stock will succeed in reversing a sharp fall in world prices
when they start four day's of talks here later today,
conference sources said.
    Another topic likely to be discussed at the twice-yearly
meeting of the Cocoa Producer Alliance (CPA) is the pact's
second line of market support -- a witholding scheme under
which exporters can take up to 120,000 tonnes of cocoa off the
market if buffer stock purchases fail to defend prices.
    The International Cocoa Organisation is due to discuss the
scheme at a meeting in June, and exporters could use the
Yaounde talks to work out a common position on the issue, the
sources said.
    Delegates will also be briefed on arrangements for an
international cocoa research conference due to take place in
Santo Domingo in the Dominican Republic next month, CPA
secretary general D.S. Kamga said.
    The 11-member CPA include the world's top three producers
of Ivory Coast, Brazil and Ghana and accounts for around 80 pct
of world output.


.I 2236
.C
wheat;grain;
.W
AUSTRALIAN WEEKLY WHEAT SHIPMENTS - WEEK TO 23-29.
    (in tonnes for crop year beginning oct 1) current week     
  prev week 316,024           297,045 crop year to date    
prev crop to date 7,217,394         8,422,811

.I 2238
.C
gnp
.W
SOUTH KOREA'S 1987 GNP SEEN GROWING NINE PCT.
    SEOUL, April 6 - South Korea's gross national product (gnp)
is forecast to grow by nine pct in 1987, surpassing the
government's original forecast of eight pct and against a 12.5
pct rise in 1986, an Economic Planning Board report said.
    The report reviewing the country's economy in the first
three months of this year said year-on-year gnp was
provisionally estimated to have grown by about 12 pct in the
period, against a 10.5 pct growth in the same 1986 period.
    Board officials said the gnp rise in the January-March
period is due largely to increased exports, which totalled 9.34
billion dlrs against 6.9 billion a year earlier.


.I 2239
.C
ipi
.W
INSTITUTE SEES W.GERMAN OUTPUT FALL IN 1987.
    MUNICH, April 5 - Production in the manufactured goods
industry has been falling since mid-1986 and will decline by
between one and two pct this year after a 2.5 pct increase in
1986, the Ifo economic institute said.
    An Ifo report said recessionary influences were affecting
the engineering industry particularly. It saw a decline of two
to three pct in this sector after a 5.2 pct rise in 1986.
    Orders, especially from abroad, were also falling sharply
for capital goods in the electronics sector, it added.
    Ifo also predicted stagnation in the automobile industry in
1987 after a particularly successful 1986 when production rose
5.1 pct.
    Chemical industry production, which fell by 0.9 pct last
year, was likely to stagnate or decline by one pct in 1987.
This sector suffered from slack demand from abroad and from low
domestic consumption.


.I 2243
.C
coffee
.W
IBC CLOSES EXPORT REGISTRATIONS - IBC OFFICIAL.
    RIO DE JANEIRO, April 5 - The Brazilian Coffee Institute
(IBC) confirmed having closed May export registrations,
effective April 6.
    On Friday night exporters said they had heard of the
closure from IBC officials, but the officials could not at the
time be reached for confirmation.


.I 2244
.C
money-fx;stg;
.W
LAWSON SAYS U.K. ELECTION NOT ONLY EMS BAR.
    KNOKKE-HEIST, Belgium, April 5 - British Chancellor of the
Exchequer Nigel Lawson said the next U.K. Election was not the
only element standing in the way of full British membership of
the European Monetary System (EMS).
    But he added that arguments against joining had weakened.
    Prime Minister Margaret Thatcher, widely believed to be the
strongest government opponent of full EMS membership, has made
clear she does not expect to consider joining until after the
next UK election, due by mid-1988 at the latest.
    But Lawson, in answer to a question, told reporters after
an informal European Community finance ministers' meeting here
that other factors apart from the upcoming election stood in
the way of full membership.
    In addition to the question of the exchange rates at which
Britain should enter the EMS's core exchange rate mechanism,
there was also the impact of sterling membership on the system
to be considered, he said.
    British entry would change the EMS from a monopolar system
based on the West German mark to a bipolar mark-sterling
system, he noted. "We have to make sure it would work."
    But Lawson added that some of the considerations that had
made it difficult for Britain to join in the past now posed
less of a problem.
    As an example he cited sterling's role as a petrocurrency,
which he said was diminishing. "That argument has clearly
weakened," he said.
    Lawson restated that the government was keeping the
question of membership under review.


.I 2245
.C
money-fx
.W
EC AGREES ON NEED TO STRENGTHEN EMS.
    By Tony Carritt, Reuters
    KNOKKE-HEIST, Belgium, April 5 - European Community (EC)
finance ministers and central bankers agreed on the need for
greater cooperation to strengthen the European Monetary System
(EMS) against international market turbulence, officials said.
    "There was a general will to reinforce the European Monetary
System, with all that implies," Belgian Finance Minister Mark
Eyskens said yesterday after hosting a one-day session of
informal talks at this Belgian coastal resort.
    The gathering was the first such discussion since the
second major realignment of EMS parities within nine months in
January.
    The system has come under severe strain as funds have
flowed out of the slumping dollar and into the dominant EMS
currency, the West German mark, sending it soaring against
weaker currencies in the system.
    But Eyskens said February's agreement between leading
western industrialised nations to stabilise exchange rates at
around current levels was working and this would allow the EC
to speed up its efforts to boost the internal stability of the
EMS.
    He told a news conference yesterday's meeting agreed on the
need for closer coordination among EMS member governments of
interest rate policies and of interest rate differentials
between different countries.
    They also agreed they needed better coordination of
exchange market intervention to hold currencies stable, both
when they reached their fixed EMS limits and within their
agreed margins.
    But Eyskens said this coordination raised a whole range of
technical problems and ministers would discuss these further in
Luxembourg in June on the basis of proposals from the EC's
Monetary Committee and Committee of Central Bank Governors.
    He said the EC needed a set of indicators of economic
convergence betwen Community countries and it was important
that interest rates fulfilled this role together with exchange
rates and inflation rates.
    The Belgian minister, whose country presently holds the
presidency of the community, made clear the meeting had not
produced any agreement to move radically forward in developing
the EMS towards the EC's long term goal of economic and
monetary integration.
    "We have committed ourselves to reestablishing the normal
functioning of the system," Eyskens said.
    Eyskens has repeatedly stressed that he believes the EMS
has to be reinforced if the EC's plans to liberalise all
movements of capital across national borders by 1992 are to go
ahead.
    EC executive Commission President Jacques Delors told the
meeting the authority would put forward proposals for a final
phase of capital market liberalisation in October that would
include safeguard clauses for member countries for which the
move would create difficulties.
    Eyskens said the ministers and central bankers also
discussed the need to "dedramatise" realignments of EMS parities
by letting high-ranking monetary officials carry them out by
telephone rather than calling a meeting of finance ministers.
    However, West German sources said Bonn Finance Minister
Gerhard Stoltenberg was unenthusiastic about the idea.
    British Chancellor of the Exchequer Nigel Lawson told
journalists that one of the technical issues raised by greater
coordination of exchange market intervention was the question
of which currencies should be used to intervene and held in
central bank reserves.
    He said several EMS member countries believed the EMS would
work better if central banks held each other's currencies -- an
issue of particular importance regarding West Germany since the
Bundesbank holds only dollars in its foreign exchange reserves.
    He said the debate on dedramatising EMS realignments
reflected a general feeling among participants that the way the
January reshuffle had been conducted was unsatisfactory.
   The realignment was marked by acrimony between France and
West Germany, with each side blaming the other for strains in
the system that forced the parity overhaul.


.I 2246
.C
money-fx
.W
ZAMBIAN CURRENCY FALLS AT FOREIGN EXCHANGE AUCTION.
    LUSAKA, April 5 - The Zambian currency further depreciated
yesterday at the second auction since the introduction of a
two-tier foreign exchange system last month.
    The (central) Bank of Zambia said the kwacha was pegged at
16.99 to the dollar, compared to last week"s rate of 15 to the
dollar.
    The bank, which offered six mln dlrs at the auction,
reported demand for 13.4 mln dlrs. At the previous auction, the
government offered eight mln dlrs.
    Last month the government set a fixed exchange rate of nine
kwacha per dollar, subject to adjustment against a basket of
five currencies, for certain official transactions.
    It also introduced a new weekly foreign exchange auction
only for parastatal organisations and the private sector, where
the exchange rate is allowed to float in accordance with market
demand.
    The new auction system is designed to be more restrictive
than the previous one, suspended in January after the central
bank fell 10 weeks in arrears to successful bidders.
    Under the new system, no bidder, except the the state oil
company Zimoil and the national airline Zambia Airways, is
allowed to bid for more than five pct of the foreign exchange
on offer.


.I 2248
.C
ship
.W
U.S. NAVY SAID INCREASING PRESENCE NEAR GULF.
    NEW YORK, April 5 - Defence Secretary Caspar Weinberger has
ordered the U.S. Navy to increase its presence near the Gulf in
an effort to fulfil President Reagan's pledge to keep oil
flowing to Europe and Japan, The New York Times reported.
    The newspaper quoted Pentagon officials as saying the Navy
would keep the aircraft carrier Kitty Hawk on station in the
Arabian Sea and the rest of the Indian Ocean until May, three
months longer than planned.
    The Navy would then have a carrier battle group of six to
eight warships in the area at all times rather than part of the
time, as happens now, the paper said.
    The paper said that last month U.S. Intelligence sources
said they had spotted land-based anti-ship missiles of a
Chinese design known in the West as the HY-2 near the Strait of
Hormuz.
    It said their purpose was seen as a signal Iran was ready
to continue and perhaps step up the Gulf shipping war against
Iraq.
    U.S. Carriers or battleships would sail out of range of
those missiles, but within striking distance, the paper quoted
officials as saying.
    From several hundred miles at sea, carriers could launch
aircraft bombing runs or missile strikes, and battleships could
fire long-range missiles, the paper said.


.I 2252
.C
strategic-metal
.W
ALGERIAN, SPANISH FIRMS AGREE QUICKSILVER PRICE.
    ALGIERS, April 5 - Algerian and Spanish producers which
together meet 40 pct of the Western market's needs in
quicksilver have agreed to apply a minimum selling price of 300
dlrs per unit, the Algerian news agency APS said.
    The agreement was made during a meeting here last week
between Algeria's Entreprise Nationale des Non-ferreux et
Substances Utiles (ENOF) and Spain's Almaden to discuss the
market situation.
    The two firms "took note with regret that prices quoted by
some specialised publications do not reflect the reality of the
whole market since they take into account only part of the
deals made," a statement by ENOF said.
    The result is that the prices quoted are far away from two
firms' production costs.
    "They have thus decided that their selling price would not
be linked any more to the prices quoted by these publications
and that sales would be made at a minimum price of 300 dlrs fob
per jar, which is close to their production cost," the statement
said.
    It added that Turkish producers would join in when the two
firms meet again in Madrid later this month.
    The price of quicksilver on the London Metal Exchange
hovered around 200 dlrs this week.


.I 2256
.C
reserves
.W
CHINA'S FOREIGN EXCHANGE RESERVES FALL DURING 1986.
    PEKING, April 5 - China's foreign exchange reserves
totalled 10.514 billion dlrs at end-1986, up from 10.37 billion
at end-September but down from 11.9 billion at end-1985,
according to central bank figures published by the New China
News Agency.
    The agency said 2.072 billion dlrs of the reserves was held
by the state treasury, down from 2.26 billion at end-September,
while 8.442 billion was held by the Bank of China, up from 8.11
billion.
    China's outstanding foreign debts rose to 7.572 billion at
end-1986 from 5.067 billion at end-1985. Gold reserves stood at
12.67 mln ounces, unchanged over the year.


.I 2257
.C
crude
.W
IEA SEES ONE PCT GROWTH IN 1987 OECD OIL DEMAND.
    PARIS, April 5 - Growth in oil consumption in the Western
industrialised countries is likely to slow to around one pct
this year compared with 2.3 pct in 1986, the International
Energy Agency (IEA) said.
    Oil use in the 24 countries of the OECD increased by around
one pct in first quarter 1987 to 35.9 mln bpd, the IEA said in
its Monthly Oil Market Report.
    Growth in OECD countries is expected to come primarily from
transport fuels, as in 1986. But if average consumer prices are
higher than 1986, the rate of growth for these fuels may be
below last year's 3.6 pct, it said.
    The IEA said that assuming crude oil and product prices
stay close to current levels, some destocking by end-users can
be expected. If that happens, natural gas will also regain some
of the market share it lost to heavy fuel in 1986, and there
may be slightly less growth in transport fuels.
    IEA estimates on April 1 put oil stocks in the OECD area at
428 mln tonnes, representing 98 days of forward consumption.
This is about the same level as at the begining of the year.
    The agency said this flat trend is explained by the
projected seasonal consumption decline in the second quarter of
the year which offset a reduction in stocks.
    It said initial estimates indicate that company stocks fell
by 1.2 mln bpd in OECD countries in the first quarter of the
year. This followed a small rise in January of 0.4 mln bpd but
a decline of 1.5 mln bpd in February and 2.5 mln bpd in March.
    It is possible that final data will show a larger draw,
particulary for March, it said. As crude production also fell,
there is likely to have also been a decline in non-reported
stocks, particularly at sea, the IEA said.
    Company stocks on land in the OECD rose to 326 mln tonnes
on April 1 against 316 mln on April 1 1986. Governments built
up strategic stocks to 102 mln tonnes against 97 mln in the
period.
    The year-on-year trend of government stock building is
continuing with year-on-year company stocks also rising, more
or less in line with consumption, after declining for five
years, the IEA noted.
    Oil stocks on land in the U.S. And Canada were put at 206.6
mln tonnes on April 1, down from the 214 mln tonnes on January
1 and equivalent to 94 and 98 days of consumption,
respectively.
    Oil stocks in Western Europe were 147.4 mln tonnes on April
1, down from the 154 mln on January 1 but still equivalent to
94 days of consumption.
    World oil supply fell in the first quarter by about two mln
bpd to 45.2 mln bpd from 47.2 mln bpd in last quarter 1986.
    This drop was mostly due to a decline in OPEC crude
production to around 15.5 mln bpd in February/March from 16.5
mln bpd in January and to the seasonal drop in exports from
centrally-planned Economies, the IEA said.
    Total OPEC crude oil supply was 15.8 mln bpd in the first
quarter, plus 1.4 mln bpd of NGLs, compared with 17.3 mln bpd
of crude in the last three months of 1986 and 17.9 mln average
for the whole of 1986. Supply from non-OPEC countries totalled
28 mln bpd, against 28.5 mln bpd in the fourth quarter 1986.
    A drop in Saudi Arabian output to a tentatively forecast
3.3 mln bpd in March from 3.6 mln bpd in February was the
largest factor behind the OPEC production decline, the IEA
said.
    Saudi Arabia"s Opec-assigned output quota is 4.133 mln bpd.


.I 2259
.C
gnp
.W
MARCH U.S. PURCHASING MANAGERS INDEX UP AT 53.9.
    NEW YORK, April 6 - The U.S. economy in March improved at a
faster rate than in February, with the National Association of
Purchasing Management's composite index rising to 53.9 pct from
51.9 pct, the NAPM said.
    The first quarter average for the index also was 53.9 pct.
The NAPM said that, if this average were to continue for the
rest of 1987, it would be consistent with real gross national
product growth of about three pct.
    An index reading above 50 pct generally indicates that the
economy is in an expanding phase. One below 50 pct implies a
declining economy.
    The NAPM said the economic improvement was evident in all
of the indicators in the index except inventories, which
declined slightly.
    New orders rose sharply in March, with production also
higher. Vendor deliveries slowed, another sign that the economy
improved in March. Employment expanded for the first time since
August 1984.
    Robert Bretz, chairman of the NAPM's business survey
committee and director of materials management at Pitney Bowes
Inc <PBI> said "the economy ended the first quarter with a
healthy, if not substantial improvement."
    Bretz said the sharp rise in the growth of new orders in
March assures a good beginning for the second quarter.
    Some 50 pct of the purchasing managers reported that they
were paying higher prices in March than at the end of 1986. Of
those paying higher prices now, the average increase was put at
2.5 pct.
    The estimated average price increase anticipated by members
for the remainder of 1987 is 2.1 pct. While prices continue to
rise, the NAPM said that most purchasers do not see them as
being significant.
    The composite index is a seasonally adjusted figure, based
on five components of the NAPM business survey - new orders,
production, vendor deliveries, inventories and employment.
    The monthly report is based on questions asked of
purchasing managers at 250 U.S. industrial companies.


.I 2262
.C
money-fx
.W
U.S. CREDIT MARKET OUTLOOK - CAUTIOUS TRADING.
    By Martin Cherrin, Reuters
    NEW YORK, April 6 - U.S. Bond trading is likely to remain
cautious in the near term with a possible downward price bias
as market participants focus on trends in the dollar, the
economy and Federal Reserve policy, economists said.
    Most expect the economy to continue showing modest gains,
that the dollar has more room to fall and that the Fed will
keep policy essentially steady, perhaps for several months.
    Until trends are clearer, "the market can only attempt to to
establish and hold a new trading range at higher interest
rates," said economists at Merrill Lynch Capital Markets.
    Merrill Lynch economists Raymond Stone and Ward McCarthy
said that while the fundamentals generally bode for a healthy
investment climate, the market will have no confidence in this
environment until there is illumination of and confidence in
U.S. Dollar/trade policy.
    Salomon Brothers' Henry Kaufman said the bond market,
highly sensitized to dollar movements, could be encouraged if
currency markets seem to be stabilizing or if U.S. And overseas
economic growth is perceived as slowing sharply.
    "The crucial question, however, is how soon either of these
developments is likely to occur," Kaufman said.
    "Market uncertainties and the erosion of portfolio manager
confidence could continue portfolio selling pressure a while
longer," said Philip Braverman, chief economist at Irving
Securities Corp.
    However, Braverman said that, "from a longer term
perspective, current (bond) prices provide a buying
opportunity."
    Despite a nearly one-point bond price rebound Friday on
unexpectedly weak March employment data, key 30-year Treasury
bonds lost 2-1/4 points in price for the week as a whole and
Thursday's 7.93 pct closing yield was a 1987 high.
    Braverman said historical evidence suggests that a long
bond yield in the 7.93 pct area provides a basis for optimism.
Bonds closed at 7.86 pct on Friday.
    The Irving economist noted that three times last year, in a
similar "paroxysm of pessimism," the key bonds reached a similar
closing yield high. Within three to six weeks in each instance,
however, Braverman said bond prices recovered to bring the
yield down sharply by 63 to 82 basis points.
    Mitchell Held of Smith Barney, Harris Upham and Co Inc said
that many portfolio managers now believe yields could approach
nine pct by midyear, which he considers unlikely.
    Held said that, since late 1986, Smith Barney analysts have
spoken about the risk that interest rates could move higher and
they continue to believe that an upward bias is likely to
persist over the next few months.
    Held said that in conversations with portfolio managers
last week there appeared to be increasing belief that the rate
rise had just begun and that yields could approach nine pct by
midyear. Naturally, that would mean a sharp bond price fall.
    "Yields could rise further over the next few months, but the
rise should be less than the 65 basis point rise we've seen
since the start of the year," Held said.
    Most expect Fed policy to be neutral for bonds near term.
    "The Fed is currently frozen into a fixed stance," said
economists at Aubrey G. Lanston and Co Inc.
    They said the Fed cannot tighten policy and push up
interest rates as might be appropriate to stabilize the dollar
and head off renewed inflationary psychology. That might harm
the fragile U.S. Economic expansion.
    The Lanston economists said, "The Fed cannot ease its policy
stance to both foster more rapid economic growth and calm
domestic and Third World debt jitters without the threat of
causing a further decline in the dollar."
    Minutes of February's Federal Open Market Committee (FOMC)
meeting released Friday showed that while the FOMC left policy
unchanged it was more inclined to firm rather than ease policy
later if conditions in the economy, foreign exchange or credit
markets warranted a policy shift.
    However, economists generally believe that continued fairly
sluggish U.S. Economic growth and the financial strains on U.S.
Banks resulting from their problem loans to developing
countries rule out any Fed policy firming.
    There is broad agreement among economists that the FOMC at
last Tuesday's meeting also left Fed policy unchanged.
    This week's U.S. Economic data are expected to have little
impact. February consumer instalment credit numbers are due on
Wednesday, with March producer price data out Friday.
    There may be mild relief in some quarters that the U.S.
Purchasing Managers Composite Index, a closely-watched economic
indicator, rose only to 53.9 pct in March from 51.9 pct. A
Friday rumor had put the number far higher. The index's first
quarter average also was 53.9 pct, translating into real GNP
growth of about three pct if continued through 1987.
    Federal funds traded at 5-15/16 pct late Friday and are
expected to open about there today with no Fed action seen.


.I 2263
.C
interest
.W
NATIONAL AUSTRALIA BANK LOWERS BENCHMARK PRIME.
    MELBOURNE, April 6 - National Australia Bank Ltd <NABA.S>
said it lowered its benchmark prime lending rate to 18.25 pct
from 18.5, effective today, but left its base rate at 18.5.
    The benchmark reduction brings the rate into line with the
prime rates of most of Australia's trading banks, including
those of two of the other three major trading banks.
    However, the rate is above the 18 pct - the lowest ruling
rate - set by the other major, the Australia and New Zealand
Banking Group Ltd <ANZA.S>, on Friday and effective today.
    The benchmark is based on short-term interest rate
movements while the base rate is tied to longer-term trends.


.I 2264
.C
earn
.W
CAESARS WORLD BOARD APPROVES RECAPITALIZATION.
    NEW YORK, April 5 - Caesars World Inc <CAW> said its
directors unanimously approved a recapitalization plan under
which stockholders will get a cash distribution of 25 dlrs per
share via a one-time special cash dividend and will retain
their common stock ownership in Caesars World.
    Caesars World said it expects to raise the approximately
one billion dlrs needed to pay the 25 dlr per share dividend
and the expenses of recapitalization through around 200 mln
dlrs in bank borrowings and a public sale of approximately 800
mln dlrs of debt. Some outstanding debt will be retired.
    Drexel Burnham Lambert Inc, Caesars' financial advisor, has
told the company it is confident it can arrange the entire
financing needed for the recapitalization.
    Henry Gluck, chairman and chief executive officer of the
hotel, casino and resorts company, said in a statement the
board believes the recapitalization plan is financially
superior to a 28 dlr a share tender offer by Martin Sosnoff.
    Gluck said the Caesars World board once again recommends
that shareholders reject the Sosnoff offer.
    The stock closed at 29.25 dlrs a share on Friday.
    "Our ability to restructure along these lines is possible
primarily because of the financial stability and the strong
operating results achieved by management in recent years," Gluck
said.
    He said that after the recapitalization takes effect,
proforma net income for the fiscal year ended July 31, 1988 is
expected to be about 28.7 mln dlrs.
    Fiscal 1988 primary earnings per share are projected to be
76 cents, based on about 37.8 mln in post-recapitalization
common and common-equivalent shares outstanding.
    Commenting on the company's longer term earnings outlook,
Gluck said "we project net income to increase to 86.2 mln dlrs
in 1992, reflecting increased operating income and lower
interest expense due to the retirement of 267 mln dlrs of debt
incurred in connection with the recapitalization."
    He said the company does not usually release projections,
but has done so now beause of the significance of the
recapitalization.
    Gluck said the recapitalization plan will be submitted for
stockholder approval at a special meeting expected in June.
    The plan will require the approval of stockholders and that
of the Nevada and New Jersey gaming regulatory authorities.
    As part of the plan, the company will change its state of
incorporation from Florida to Delaware by means of a merger of
Caesars World into a wholly owned subsidiary of the company.
    The new incorporation certificate and bylaws will provide
for, among other things, a "fair price" provision requiring that
certain transactions with interested 15 pct stockholders be
approved by an 80 pct vote of stockholders, excluding shares
held by such interested stockholders.
    Caesars World said in a statement that "the cash
distribution will result in a substantial deficit in
stockholders' equity." It did not give an estimate of the size
of this deficit.
    But the company said its financial advisors have said they
believe that after the recapitalization, Caesars World should
have the financial flexibility and resources necessary to
finance its current and projected operating and capital
requirements.


.I 2266
.C
acq
.W
AUSTRALIAN GAS LIGHT CO COUNTER-BIDS FOR TMOC.
    SYDNEY, April - <The Australian Gas Light Co> (AGL) said it
will offer one share plus one dlr cash for every two shares in
oil and gas producer <TMOC Resources Ltd> in a counter-bid to
the previously reported takeover offer by Santos Ltd <STOS.S>.
    The offer values TMOC shares at 4.75 dlrs each, based on
AGL's closing price of 8.50 dlrs on Friday. TMOC shares jumped
to 4.60 dlrs on the announcement from its Friday closing price
of 4.15.
    The AGL offer, the third to be made for TMOC this year,
compares with the Santos cash offer of 4.00 dlrs a share.
    Based on TMOC's issued capital of 62.08 mln shares, the AGL
offer values the entire company at 249.9 mln shares.
    AGL said in a statement that it already holds 10.5 pct of
TMOC's issued capital. This compares with the Santos stake of
3.1 pct when it announced its bid in March 23.
    <Elders Resources Ltd> began the auction for TMOC about
three months ago with an unsuccessful 2.55 dlrs a share
on-market offer that has since lapsed.
    AGL said its offer is above the upper end of the range of
values placed on TMOC by its advisers in the company's response
urging rejection of the Elders Resources bid.
    AGL said it will make the same offer for TMOC's convertible
notes. Accepting share and note holders will participate in
AGL's planned one-for-one bonus issue.
    It said TMOC is already a partner with AGL in the Alice
Springs to Darwin gas pipeline and has a number of businesses
complementary with those of AGL.
    AGL is the New South Wales natural gas utility while TMOC
has extensive onshore holdings, mainly in Queensland where it
owns the Moonie oil field and in the Northern Territory where
it operates and holds 43.75 of the Mereenie oil-gas field. It
also has interests in a number of gas or oil pipelines.


.I 2267
.C
crude
.W
IEA FORECASTS SLOWER GROWTH IN OECD OIL DEMAND.
    PARIS, April 5 - Growth in oil consumption in the Western
industrialized countries is likely to slow to around one pct
this year compared with 2.3 pct in 1986, the International
Energy Agency said.
    Oil use in the 24 member countries of the Organization for
Economic Cooperation and Development (OECD) increased by around
one pct in the first quarter of 1987 to 35.9 mln barrels a day,
the IEA said in its latest monthly report.
    Growth in OECD countries is expected to come primarily from
transport fuels, as was the case in 1986. But if average
consumer prices are higher than 1986, the rate of growth for
these fuels may be below last year's 3.6 pct.
    The IEA said assuming crude and product prices remain nar
current levels, some destocking by end-users can be expected.
    If that takes place, natural gas will also regain some of
the market share it lost to heavy fuel in 1986, it said.
    IEA estimates on April one put oil stocks held in the OECD
area at 428 mln tonnes, or 98 days of forward consumption. This
is about the same as at the begining of the year.
    The agency said this flat trend is explained by the
projected seasonal consumption decline in the second quarter of
the year which offset a reduction in stocks.
    Company stocks on land in the OECD rose to 326 mln tonnes
on April one this year compared with 316 mln tonnes in calender
1986 while governments also built up their strategic stocks to
102 mln tonnes against 97 mln in 1986.
    The year-on-year trend of government stock building is
continuing with company stocks rising, more or less in line
with consumption, after declining for five years, IEA said.
    Oil stocks on land in the United States and Canada were put
at 206.6 mln tonnes down from the 214 mln tonnes on January one
and equivalent to 94 and 98 days of consumption, respectively.
    Oil stocks in Western Europe were 147.4 mln tonnes, down
from the 154 mln tonnes on January one but still equivalent to
94 days of consumption.
    The IEA said that initial estimates indicate that company
stocks fell by 1.2 mln bpd in OECD countries in the first
quarter of the year. This followed a small rise in January of
400,000 bpd but a decline of 1.5 bpd in February and 2.5 bpd in
March.
    And it is possible that final data will show a larger draw,
particulary for March, it said.
    As crude production also fell, there is likely to have also
been a decline in non-reported stocks, particularly at sea, the
IEA said.
    World oil supply fell through the first quarter by about
two bpd to 45.2 bpd from 47.5 bpd in the last quarter of 1986.
    This drop was mostly due to a decline in OPEC crude
production to around 15.5 bpd in February/March from 16.5 bpd
in January and to the seasonal drop in exports from Centrally
Planned Economies, the IEA said.
    Total OPEC oil supply totalled 17.2 bpd in the first
quarter of 1987 compare with 19.3 bpd in the last three months
of 1986 while supply from non-OPEC countries totalled 28 bpd as
against 28.2 bpd in the same 1986 period.
    A drop in Saudi Arabian output to a tentatively forecast
3.3 bpd in march from 3.6 bpd in February was the largest
factor behind the OPEC production decline, the IEA said.


.I 2270
.C
coffee
.W
PHILIPPINE COFFEE EXPORTS SEEN FALLING SHARPLY.
     MANILA, April 6 - Philippine coffee exports are expected
to fall sharply due to a combination of the International
Coffee Organisation's (ICO) decision not to revive export
quotas and higher local prices, ICO Certifying Agency official
Dante de Guzman told Reuters.
    He said exporter registrations dropped from an average
weekly 500 tonnes in March to 45 tonnes last week, with exports
in coffee year 1986/87, ending September, forecast to total
about 8,000 tonnes against 48,000 in 1985/86.
     "Because of the relatively higher level of domestic prices,
it has become difficult to service exports," de Guzman said,
adding that most exporters are taking a wait and see attitude.
    Coffee production was expected to drop slightly to about
one mln bags of 60 kg each in the 1986/87 crop year ending June
from 1.1 mln bags last year, he said.


.I 2271
.C
money-fx
.W
MIYAZAWA SEES BIG NATIONS REAFFIRMING PARIS PACT.
    TOKYO, April 6 - Finance Minister Kiichi Miyazawa told a
parliamentary committee he expects major nations to reafffirm
the currency pact they struck in Paris when they meet this week
in Washington, political sources said.
    The Minister also was quoted as saying he expects major
nations to take coordinated action to ensure exchange rate
stability.
    Finance Ministry officials were unavailable for immediate
comment. In Paris on February 22, six nations - Britain,
Canada, France, Japan, the U.S. And West Germany - pledged to
cooperate to hold their currencies stable.


.I 2272
.C
cocoa
.W
LEADING COCOA PRODUCERS DISCUSS INTERNATIONAL PACT.
    YAOUNDE, April 6 - Leading cocoa producers will discuss
whether newly-agreed rules on an international cocoa buffer
stock will succeed in reversing a sharp fall in world prices
when they start four day's of talks here later today,
conference sources said.
    Another topic likely to be discussed at the twice-yearly
meeting of the Cocoa Producer Alliance (CPA) is the pact's
second line of market support -- a witholding scheme under
which exporters can take up to 120,000 tonnes of cocoa off the
market if buffer stock purchases fail to defend prices.
    The International Cocoa Organisation is due to discuss the
scheme at a meeting in June, and exporters could use the
Yaounde talks to work out a common position on the issue, the
sources said.
    Delegates will also be briefed on arrangements for an
international cocoa research conference due to take place in
Santo Domingo in the Dominican Republic next month, CPA
secretary general D.S. Kamga said.
    The 11-member CPA include the world's top three producers
of Ivory Coast, Brazil and Ghana and accounts for around 80 pct
of world output.


.I 2273
.C
wheat;grain;
.W
AUSTRALIAN WEEKLY WHEAT SHIPMENTS - WEEK TO 23-29.
    (in tonnes for crop year beginning oct 1) current week     
  prev week 316,024           297,045 crop year to date    
prev crop to date 7,217,394         8,422,811

.I 2275
.C
gnp
.W
SOUTH KOREA'S 1987 GNP SEEN GROWING NINE PCT.
    SEOUL, April 6 - South Korea's gross national product (gnp)
is forecast to grow by nine pct in 1987, surpassing the
government's original forecast of eight pct and against a 12.5
pct rise in 1986, an Economic Planning Board report said.
    The report reviewing the country's economy in the first
three months of this year said year-on-year gnp was
provisionally estimated to have grown by about 12 pct in the
period, against a 10.5 pct growth in the same 1986 period.
    Board officials said the gnp rise in the January-March
period is due largely to increased exports, which totalled 9.34
billion dlrs against 6.9 billion a year earlier.


.I 2277
.C
grain;rice;
.W
THAI RICE EXPORTS FALL IN WEEK TO MARCH 31.
    BANGKOK, April 7 - Thailand exported 75,160 tonnes of rice
in the week ended March 31, down from 88,785 tonnes the
previous week, the Commerce Ministry said.
    It said the government and private exporters shipped 36,552
and 38,608 tonnes respectively.
    Private exporters concluded advance weekly sales for 22,086
tonnes against 44,483 tonnes the previous week.
    Thailand exported 1.23 mln tonnes of rice in January/March,
down from 1.29 mln tonnes a year ago. It has commitments to
export another 381,171 tonnes this year.


.I 2296
.C
oilseed;wheat;grain;rapeseed;
.W
CHINESE CROPS HIT BY FROST, SNOW AND RAIN IN MARCH.
    PEKING, April 7 - Wheat and rapeseed crops in east China
suffered considerable damage because of frost during a spell of
unusually cold weather in late March, the China Daily said.
    It said average temperatures for the last 10 days of March
in most of east China were three to five degrees centigrade
below average. Snow fell in Jiangsu, Anhui, Hubei and Henan,
making early rice sowing difficult.
    Heavy snow blanketted central and south Jilin and north
Liaoning, leaving farmland too muddy for spring ploughing and
sowing, the paper said.
    The paper said rainfall during the last 10 days of March in
areas south of the Yangtze had been much higher than normal.
    Heavy rain fell last Sunday in parts of Guangdong, ending a
particularly arid dry season and marking the start of the flood
season, it said. It gave no further details.
    The New China News Agency said rain and snow in Henan had
improved the prospects for wheat, sown on 4.8 mln hectares, and
caused a drop in grain prices at rural fairs since late
February. It gave no 1986 figures for comparison.


.I 2298
.C
dlr;money-fx;
.W
JAPAN CENTRAL BANK INTERVENES IN TOKYO AFTERNOON.
    TOKYO, April 7 - The Bank of Japan intervened in early
afternoon Tokyo trading to support the dollar against active
selling by institutional investors and speculative selling by
overseas operators, dealers said.
    The central bank had also bought dollars against the yen in
morning trade.
    The dollar traded around 145.20/30 yen when trading began
in the afternoon here and weakened only slightly, the dealers
said.


.I 2300
.C
interest
.W
******CHASE-AMP BANK TO LOWER AUSTRALIAN PRIME RATE TO 17.75 PCT FROM 18.25 TOMORROW.
Blah blah blah.

.I 2303
.C
ship
.W
KUWAIT MAY RE-REGISTER GULF TANKERS - NEWSPAPER.
    NEW YORK, April 7 - Kuwait may re-register part of its
tanker fleet with foreign flag jurisdictions, including the
U.S. And USSR, in an attempt to protect them from Iranian
missile attacks in the Gulf war zone, U.S. Officials were
quoted by the New York Times as saying.
    The transfers would allow the country of registration to
escort Kuwaiti-owned ships in the Gulf. Kuwait had earlier
declined an offer of U.S. Naval escorts as too public an
admission of its need for protection, they said.
    Kuwait is also looking at flagging-out to European
registries, the officials said.
    Soviet flag tankers transporting Kuwaiti oil through the
Gulf may get Soviet escorts, the officials said.
    Kuwait had earlier considered having both USSR and U.S.
Escorts, but the U.S. Was unwilling to give the Soviet Union a
naval role in the region, the newspaper quoted the officials as
saying.
    Kuwait has backed Iraq in the seven-year war against Iran
and its ships have increasingly been the target of Iranian
attacks.
    The U.S. And Kuwait have been negotiating for over a month
on methods of protecting Kuwaiti ships.


.I 2304
.C
interest
.W
CHASE-AMP BANK CUTS AUSTRALIAN PRIME TO 17.75 PCT.
    SYDNEY, April 7 - <Chase-AMP Bank Ltd> said it will lower
its prime lending rate to 17.75 pct from 18.25, effective
tomorrow.
    The bank is the first to lower its prime rate below the 18
pct set by a few banks in the last few days in a continuation
of a downward trend which began late last month.
    Other prime rates range from 18.25 to 18.5 pct, with the
majority on 18.25.
    The bank said the reduction reflected the recent downturn
in money market rates, the improved economic outlook and
adequate liquidity in the second quarter tax rundown period.


.I 2316
.C
cpi
.W
SWISS CONSUMER PRICES RISE ONE PCT IN MARCH.
    BERNE, April 7 - Swiss consumer prices rose one pct in the
year to March, the same rise as in the year to February, and
against 0.9 pct in the year to March 1986, the Federal
Statistics Office said.
    In March alone, prices rose 0.1 pct after a 0.3 pct rise in
February.
    The March index, base 1982, was 109.7 against 109.5 in
February.
    The Statistics Office said the March increase reflected
rises in certain sectors such as food, clothing and household
goods and falls in transport, heating and lighting.
    Both home produced and imported goods rose by 0.1 pct
during the month. But over the year as a whole, domestically
generated inflation reached 2.5 pct, offset by a 2.8 pct drop
in imports.


.I 2319
.C
earn
.W
******Nixdorf world group 1986 net profit 222.42 mln marks vs 172.29 mln, div 10 marks.
Blah blah blah.

.I 2363
.C
livestock;carcass;
.W
JAPAN'S LIPC TO BUY BEEF ON APRIL 23.
    TOKYO, April 7 - Japan's Livestock Industry Promotion Corp
(LIPC) said that on April 28 it will import 7,515 tonnes of
beef for the first half of the 1987 fiscal year started on
April 1 under the simultaneous buy and sell tender system,
against 6,813 a year ago.
    The system calls on the agency to buy beef from trading
houses and simultaneously sell it to users in one tender. The
tender quota in April-September is 10 pct of the agency's beef
import share. Japan's beef import quota in 1987/88 was set at
93,000 tonnes against 85,000 for the same period in 1986/87.


.I 2365
.C
carcass
.W
JAPAN'S LIPC TO BUY BEEF ON APRIL 23.
    TOKYO, April 7 - Japan's Livestock Industry Promotion Corp
(LIPC) said that on April 28 it will import 7,515 tonnes of
beef for the first half of the 1987 fiscal year started on
April 1 under the simultaneous buy and sell tender system,
against 6,813 a year ago.
    The system calls on the agency to buy beef from trading
houses and simultaneously sell it to users in one tender. The
tender quota in April-September is 10 pct of the agency's beef
import share. Japan's beef import quota in 1987/88 was set at
93,000 tonnes against 85,000 for the same period in 1986/87.


.I 2376
.C
acq
.W
TESCO EXTENDS HILLARDS OFFER.
    LONDON, April 7 - Tesco Plc <TSCO.L> said it was extending
its 151 mln stg contested bid for <Hillards Plc> until May 1.
    It said it now controlled 9.8 pct of Hillards shares,
comprising acceptances of the offer for 1.5 mln, or 3.1 pct,
and 3.2 mln, or 6.7 pct, owned by itself, its pension fund or
its associates.
    It also controlled 23,250 convertible preference shares, or
0.2 pct.
    Hillards shares were unchanged at 313p while Tesco was two
pence firmer at 475p.


.I 2381
.C
money-fx
.W
****** Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct.
Blah blah blah.

.I 2387
.C
money-fx
.W
BUNDESBANK SETS NEW REPURCHASE TENDER.
    FRANKFURT, April 7 - The Bundesbank set a new tender for a
28-day securities repurchase agreement, offering banks
liquidity aid at a fixed bid rate of 3.80 pct, a central bank
spokesman said.
    Banks must make their bids by 1400 GMT today. Funds will be
allocated by 0900 GMT tomorrow and credited to accounts later
in the day. Banks must repurchase securities pledged on May 6.


.I 2418
.C
earn
.W
MOET-HENNESSY PROPOSES HIGHER DIVIDEND.
    PARIS, April 7 - YEAR TO END-DEC 1986
    Proposed dividend 45 francs vs 34.50 francs
    Note - Full name of company is Moet-Hennessy SA <MHSP.PA>


.I 2441
.C
grain
.W
SOVIET GRAIN PRODUCTS MINISTRY CRITICISED.
    MOSCOW, April 7 - The Soviet Communist Party has criticised
the country's Grain Products Ministry for failing to ensure
proper grain storage, turning out poor quality bread and for
unsatisfactory book keeping, Pravda said.
    The party daily said that losses in the industry owing to
waste and theft amounted to 7.3 mln roubles over the last two
and a half years.
    The situation was particularly bad in the Central Asian
republic of Kazakhstan, which has been severely criticised
since the ousting of its veteran leader Dinmukhamed Kunayev
last December.
    Its new leader, Gennady Kolbin, has said that at times the
grain-growing republic has performed so badly that it has been
obliged to seek grain supplies from national reserves.
    Tass news agency announced yesterday that Grain Products
Minister Grigory Zolotukhin, 75, was being retired and replaced
by Alexander Budyka, a senior food industry official.
    Pravda added today that the crisis in the industry had been
drawn to Zolotukhin's attention and two of his deputies
reprimanded.


.I 2445
.C
cocoa
.W
COCOA BUFFER STOCK MAY FACE UPHILL BATTLE - TRADE.
    By Jane Merriman, Reuters
    LONDON, April 7 - The International Cocoa Organization
(ICCO) buffer stock could face an uphill battle to halt the
downtrend in world cocoa prices when it begins buying
operations in the next few weeks, cocoa traders said.
    Traders said they believed buffer stock purchases could
reach 75,000 tonnes in a matter of weeks without lifting prices
significantly, given the amount of surplus cocoa overhanging
the market. The buffer stock may begin buying shortly as the
ICCO 10 day average indicator price is now at 1,578.03 Special
Drawing Rights (SDR) per tonne, below the 1,600 "must buy" level.
    Rules governing buffer stock operations were agreed last
month by the ICCO council. Buying will begin once the buffer
stock manager has completed preparations, traders said.
    Some traders said the buffer stock manager may delay buffer
stock buying until mid or end-April when changes in months used
to calculate the ICCO indicator may lift the 10 day average
above the 1,600 SDR "must buy" level.
    The ICCO indicator price is calculated from the average of
the second, third and fourth positions on the London and New
York futures markets. The daily price was 1,577.61 SDR per
tonne yesterday.
    Months used currently for the indicator are May, July and
September, but these are set to change to July, September and
December on April 15, prior to May becoming the New York spot
month, traders noted.
    The introduction of December into the calculations may lift
the daily SDR price as December is currently quoted about 75
stg above May on the London terminal market.
    But the buffer stock manager would have to wait for the
higher daily price to feed through into the 10-day average, the
indicator which governs his activities, traders said.
    "The buffer stock manager is obviously looking at the
implications of delaying until forward prices lift the
indicator since it might mean he has to buy less cocoa," an
analyst from a leading cocoa trade house said.
    Traders said the buffer stock purchases could reach 75,000
tonnes fairly quickly once buying starts. If purchases reach
this level within six months, buying is suspended pending an
ICCO council review of price ranges. But some cocoa market
watchers said the buffer stock may benefit from recent
forecasts for a poor Brazilian Bahia temporao crop at 1.5 mln
to two mln 60 kilo bags against initial expectations of up to
three mln.
    A lower than expected Brazilian crop may cut the 1986/87
world surplus to between 50,000 and 70,000 tonnes, compared
with a recent forecast by the ICCO statistics committee of
94,000 tonnes, traders said.
    In these circumstances, the buffer stock may only need to
buy between 20,000 and 30,000 tonnes to lift prices above the
"must buy" level.
    But some dealers said the ICCO buffer stock rules may put
constraints on how quickly and effectively the buffer stock
manager can remove cocoa from the market.
    The buffer stock system of price differentials set
according to quality and a 15 pct limit on purchases from
non-members could limit the buffer stock's scope for action,
dealers said.
    Most of the cocoa readily available to the buffer stock is
nearby in-store material of Malaysian and Ivory Coast origin.
    But the buffer stock can only buy 15 pct Malaysian cocoa as
Malaysia is not an ICCO member, while purchases of nearby cocoa
can only reach 40 pct in any one day, which forces the buffer
stock to buy some intermediate and forward shipment material.
    Limits on buffer stock purchases of nearby and non-member
cocoa will reduce the impact on terminal prices which are
pressured by the overhang of Malaysian material, traders said.
    Buffer stock purchases of forward shipment cocoa from
quality producers such as Ghana will have only a limited impact
on futures, but is likely to widen physical market premiums for
this cocoa over futures.
    Ghana's premium to the terminal has risen to about 50 stg
from 25 to 30 stg a month ago partly in anticipation of buffer
stock buying, dealers said.
    "The buffer stock may not help the terminal market, but will
provide a backstop for quality cocoas," one trader said.
    Traders cautioned that views on the impact of the buffer
stock were "all prognostication" and that no one could hope to
predict accurately what the result would be. Psychologically
buffer stock buying should help prices, but since the buffer
stock already holds a carryover of 100,000 tonnes from the
previous cocoa agreement and the market is in surplus, dealers
expressed doubts purchases can counter bearish pressure.
    In June the ICCO is due to discuss rules for a withholding
scheme as an additional market support mechanism.


.I 2451
.C
money-supply
.W
****** German February capital account deficit 7.53 billion marks vs Jan 11.91 billion surplus - Bundesbank.
Blah blah blah.

.I 2454
.C
money-supply
.W
GERMAN CAPITAL ACCOUNT IN DEFICIT IN FEBRUARY.
    FRANKFURT, April 7 - West Germany recorded a net outflow of
7.53 billion marks on the February capital account, combining
long and short term capital flows, compared with a net inflow
of 11.91 billion marks in January, the Bundesbank said.
    This compared with a net outflow of 3.51 billion marks in
February 1986, the Bundesbank said.


.I 2465
.C
trade
.W
TAIWAN TRADE SURPLUS WIDENS IN FIRST QUARTER.
    TAIPEI, April 7 - Taiwan's trade surplus widened to 4.18
billion U.S. Dlrs in the first quarter of 1987 from 3.05
billion a year ago, the government statistics department said.
    First quarter exports rose to 11.25 billion U.S. Dlrs from
8.38 billion in the same period in 1986. Imports rose to 7.08
billion from 5.33 billion last year.
    The March trade surplus was 1.45 billion dlrs compared with
1.32 billion in February and 1.02 billion in March 1986.
Exports rose to 4.07 billion U.S. Dlrs from 3.85 billion in
February and 2.99 billion in March last year. Imports were 2.61
billion dlrs against 2.53 billion in February and 1.96 billion
in March 1986.


.I 2490
.C
alum
.W
AGREEMENT REACHED IN GREEK ALUMINA DEAL WITH MOSCOW.
    ATHENS, April 7 - Greece and the Soviet Union have reached
agreement in Moscow on a joint venture for a 450 mln dlr
alumina plant in Greece, government spokesman Yannis Roubatis
said.
    Roubatis told reporters the Soviet Union agreed to buy the
plant's entire annual output of 600,000 tonnes of alumina. More
details would be given later by Greek Industry Undersecretary
George Petsos, who was in Moscow.
    The project was due to start in 1986, but problems over
plans to sell some alumina to Bulgaria caused delays. The
Soviet Union, which was to take 400,000 tonnes, later agreed to
take the full production.


.I 2495
.C
dlr;money-fx;
.W
NO INTERVENTION, DOLLAR FIXED AT 1.8218 MARKS.
    FRANKFURT, April 7 - The Bundesbank did not intervene as
the dollar was fixed lower at 1.8218 marks after 1.8243
yesterday, dealers said.


.I 2508
.C
dlr;money-fx;
.W
BANK OF JAPAN INTERVENES SHORTLY AFTER TOKYO OPENS.
    TOKYO, April 7 - The Bank of Japan bought a small amount of
dollars at around 145.95 yen shortly after the Tokyo market
opened, dealers said.
    But the dollar then fell on speculative selling by trading
houses, they said.
    The dollar had opened here at 145.95 yen against 145.85/90
yen in New York and 146.00 yen at the close here yesterday.


.I 2513
.C
money-fx
.W
BANK OF JAPAN TO SELL 800 BILLION YEN IN BILLS.
    TOKYO, April 7 - The Bank of Japan will sell tomorrow a
total of 800 billion yen worth of financing bills from its
holdings to help absorb a projected money market surplus of
1,300 billion yen, money traders said.
    Of the total, 400 billion yen will yield 3.8502 pct on
sales from money houses to banks and securities houses in a
41-day repurchase accord maturing on May 19.
    Another 400 billion yen will yield 3.7991 pct in a 20-day
repurchase pact maturing on April 28, they said.
    The repurchase agreement yields compare with the 3.8125 pct
one-month, and 3.7500 pct three-week commercial bill discount
rates today.
    Tomorrow's surplus is attributable to government tax
allocations to local governments and public entities.
    The operation will put outstanding bill supply at about
4,300 billion yen, they said.


.I 2514
.C
dlr;money-fx;
.W
NO INTERVENTION, DOLLAR FIXED AT 1.8218 MARKS.
    FRANKFURT, April 7 - The Bundesbank did not intervene as
the dollar was fixed lower at 1.8218 marks after 1.8243
yesterday, dealers said.
    Dealers said dollar trading was very quiet over the
European morning, with operators made wary by today's meeting
of the Group of Five finance ministers and central bank chiefs
ahead of the full IMF/World Bank session in Washington.
    It was undermined by remarks from U.S. Council of Economic
Advisers Chairman Beryl Sprinkel who told Iowa bankers the U.S.
Had no objective regarding the value of the dollar.
    Sprinkel also called the reference to stabilizing exchange
rates at about current levels, made at the Paris meeting on
February 22, a "vague statement," casting doubt on operators'
assumptions that a secret target level had been set.
    Sprinkel added that if West Germany and Japan made progress
to stimulate their economies as the Paris agreement envisaged,
"there would not be the necessity of significant declines in the
dollar."
    One dealer for a U.S.-based bank noted the dollar tended
easier after the remarks. "They were obviously regarded as being
negative. And if the market starts regarding anything that
comes out negatively then it means that the underlying
sentiment is negative," he said.
    Some early selling pressure softened the dollar's
undertone.
    Most operators overlooked intervention by the Bank of Japan
to support the dollar against selling in favour of the yen by
institutional investors and overseas operators, dealers said.
    After the strong focus on the dollar/yen rate in recent
weeks up to the end of the Japanese financial year on March 31,
interest and activity was likely to switch, dealers said.
    "We can start to look at a point in time where the interest
shifts away from dollar/yen and more into dollar/mark and the
other European currencies," the U.S. Bank dealer said.
    Despite the softer undertone, traders would remain wary of
taking significant new positions during the Washington
meetings, dealers said. Aside from the G-5 session today,
Bundesbank President Karl Otto Poehl is due to meet the German
Affairs group on international monetary issues later.
    The mark gained some strength from news the Bundesbank set
a new securities repurchase tender to add money market
liquidity at a fixed 3.80 pct, unchanged from those over the
last several weeks. Some expectation had been growing that it
might cut the rate or move to a minimum interest rate tender,
signalling a desire for a slight easing in credit policy.
    Bundesbank central bank council member Lothar Mueller said
the Bundesbank had not given up its focus on money supply. A
monetary policy which took into account exchange rates and
capital flows could not be confused with an exchange-rate
oriented policy, he said, contradicting some growing sentiment.
    Sterling eased a touch to 2.950 marks at the fixing from
2.957. The yen's unabated strength, despite the intervention,
brought it up to 1.2555 marks per 100 from yesterday's 1.2480.
    The Swiss franc rose to a fix of 120.515 marks per 100 from
120.180. The French franc eased to 30.055 marks per 100 after
30.060, Belgian franc was little changed at 4.829 marks per
100.


.I 2515
.C
acq
.W
WORMALD TO ACQUIRE STAKE IN HOLMES PROTECTION.
    SYDNEY, April 7 - Fire protection and security group
Wormald International Ltd <WOIA.S> said British-listed <Holmes
Protection Group Inc> has agreed to issue it with 6.15 mln
common shares of one U.S. Cent par-value at 1.72 stg each.
    The two groups have also begun exploratory talks on a
possible merger of the Holmes business with the compatible
businesses of Wormald, comprising some or all of its fire
protection and security businesses in the Americas and Europe,
Wormald said in a statement.
    The issue of shares in the New York-based Holmes is
conditional upon shareholder approval at a general meeting.
    Wormald said its stake will represent 9.99 pct of Holmes'
existing issued shares and 9.09 pct of the enlarged capital.
    The issue will raise 10.6 mln stg which will be used for
further development of the Holmes business.
    Wormald said the businesses of the two groups are largely
complementary in terms of both geographical spread and the
nature of their activities, with Holmes concentrating on
burglar alarms and Wormald on fire systems.
    Holmes's operations are concentrated in and around New York
amd Miami. It earned 11 mln U.S. Dlrs pre-tax in its last
reported full year, 1985, and 6.0 mln in first half 1986.


.I 2522
.C
meal-feed
.W
WEST GERMAN 1986 OIL MEALS, CAKES USE UP.
    HAMBURG, April 7 - West German consumption of oilmeals and
oil cakes last year rose by 2.4 pct to 6.3 mln tonnes, the
agriculture ministry said.
    It said in a statement the increase was exclusively due to
sharply higher use of rape products, which went up by 8.9 pct
to 1.08 mln tonnes.
    Use of soy products dropped 7.2 pct to 2.89 mln tonnes, it
added.


.I 2525
.C
ship;crude;
.W
KUWAIT MAY RE-REGISTER GULF TANKERS - NEWSPAPER.
    NEW YORK, April 7 - Kuwait may re-register part of its
tanker fleet with foreign flag jurisdictions, including the
U.S. And USSR, in an attempt to protect them from Iranian
missile attacks in the Gulf war zone, U.S. Officials were
quoted by the New York Times as saying.
    The transfers would allow the country of registration to
escort Kuwaiti-owned ships in the Gulf. Kuwait had earlier
declined an offer of U.S. Naval escorts as too public an
admission of its need for protection, they said.
    Kuwait is also looking at flagging-out to European
registries, the officials said.
    Soviet flag tankers transporting Kuwaiti oil through the
Gulf may get Soviet escorts, the officials said.
    Kuwait had earlier considered having both USSR and U.S.
Escorts, but the U.S. Was unwilling to give the Soviet Union a
naval role in the region, the newspaper quoted the officials as
saying.
    Kuwait has backed Iraq in the seven-year war against Iran
and its ships have increasingly been the target of Iranian
attacks.
    The U.S. And Kuwait have been negotiating for over a month
on methods of protecting Kuwaiti ships.


.I 2526
.C
interest
.W
CHASE-AMP BANK CUTS AUSTRALIAN PRIME TO 17.75 PCT.
    SYDNEY, April 7 - <Chase-AMP Bank Ltd> said it will lower
its prime lending rate to 17.75 pct from 18.25, effective
tomorrow.
    The bank is the first to lower its prime rate below the 18
pct set by a few banks in the last few days in a continuation
of a downward trend which began late last month.
    Other prime rates range from 18.25 to 18.5 pct, with the
majority on 18.25.
    The bank said the reduction reflected the recent downturn
in money market rates, the improved economic outlook and
adequate liquidity in the second quarter tax rundown period.


.I 2527
.C
dlr;money-fx;yen;
.W
JAPAN CENTRAL BANK INTERVENES IN TOKYO AFTERNOON.
    TOKYO, April 7 - The Bank of Japan intervened in early
afternoon Tokyo trading to support the dollar against active
selling by institutional investors and speculative selling by
overseas operators, dealers said.
    The central bank had also bought dollars against the yen in
morning trade.
    The dollar traded around 145.20/30 yen when trading began
in the afternoon here and weakened only slightly, the dealers
said.


.I 2535
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 224 MLN STG ASSISTANCE.
    LONDON, April 7 - The Bank of England said it had provided
the money market with 224 mln stg help in the morning session.
This compares with the Bank's forecast of a shortage in the
system today of around 850 mln stg which it earlier revised up
from 800 mln.
    The central bank bought bank bills comprising 27 mln stg in
band one at 9-7/8 pct, 21 mln stg in band two at 9-13/16 pct
and 171 mln stg in band three at 9-3/4 pct.
    It also purchased three mln stg of treasury bills and two
mln stg of local authority bills in band three at 9-3/4 pct.


.I 2542
.C
ipi
.W
EC INDUSTRIAL PRODUCTION GROWTH HALTS IN JANUARY.
    LUXEMBOURG, April 7 - Industrial production in the European
Community (EC) in January showed no growth compared with
January 1986, the EC statistics office, Eurostat, said in a
report.
    It said the EC industrial production index, base 1980,
stood at 103.9 in both months.
    EC officials said while the lack of growth may have been
due in part to the icy weather which gripped large parts of the
EC in January, it also reflects a worrying trend.
    Eurostat said for the last three months for which figures
are known, industrial output rose by only 0.9 pct compared with
the year-earlier period.
    Annual growth in the 12 months to January averaged about
1.8 pct, well below the 2.8 pct figure recorded in the 12
months ending last June, the office said.


.I 2594
.C
crude
.W
OCCIDENTAL <OXY> IN BIG PERU HEAVY OIL FIND.
    LOS ANGELES, April 7 - Occidental Petroleum Corp said the
Shiviyacu-23 development well on Block 1-AB in the Peruvian
Amazon jungle is producing 6,593 barrels of 22 degree gravity
oil per day from depths of 9,543 to 9,547 and 9,556 to 9,599
feet.
    The company said it is drilling a new exploration well on
the block, Southeast Shiviyacu-1, 2.5 miles away.


.I 2598
.C
earn
.W
LIEBERMAN ENTERPRISES INC 3RD QTR FEB 28 NET.
    MINNEAPOLIS, April 7 -
    Shr 51 cts vs 46 cts
    Shr diluted 44 cts vs 41 cts
    Net 2,267,000 vs 2,055,000
    Sales 87.3 mln vs 70.4 mln
    Nine mths
    Shr 1.20 dlrs vs 1.12 dlrs
    Shr diluted 1.07 dlrs vs 1.03 dlrs
    Net 5,318,000 vs 4,958,000
    Sales 243.7 mln vs 198.7 mln


.I 2616
.C
crude
.W
BP SCOTTISH REFINERY SET TO RESTART THIS WEEK.
    LONDON, April 7 - The British Petroleum <BP.L> Co Plc's
refinery at Grangemouth, Scotland, shut down after an explosion
and fire in the hydrocracker on March 22, will probably be back
in operation towards the week-end, a refinery spokesman said.
    He said the refinery will resume at about half its 178,500
barrels per day (bpd) capacity, as work on overhauling the
North Side of the complex, which began at the end of January,
will not be completed before the end of April.
    He said the refinery had been closed for longer than
originally expected due to the lengthy safety checks being
carried out prior to restarting.
    The explosion and fire, in which one worker was killed,
caused extensive damage to the central part of the 32,000
hydrocracker and the spokesman said today this unit would be
out of operation for several months. The remainder of the
refinery, including the 19,000 catalytic cracker, was
undamaged.
    He said inquiries into the accident, which happened while
the hydrocracker was not in operation, were continuing.
    In an earlier incident, two people were killed in an
explosion and fire at the refinery on March 13.


.I 2632
.C
trade
.W
BRITAIN WARNS JAPAN OVER TRADE ROW.
    By Rich Miller, Reuters
    TOKYO, April 7 - British corporate affairs minister Michael
Howard told Japan to resolve the row over the U.K. Firm Cable
and Wireless Plc's <CAWL.L> shareholding in a new Japanese
telecommunications company or face an abrupt deterioration in
trade relations.
    In meetings with both the foreign and telecommunications
ministers Howard said he expressed deep concern about the way
Tokyo had handled the dispute and about the continuing trade
imbalance between the two countries.
    "I put it to the (post and telecommunications) minister that
I was sure he did not want to be responsible for an abrupt
deterioration in the trading relations of our countries which
would have widespread reverberations elsewhere in the world,"
Howard told reporters.
    "He listened very carefully and I have little doubt the
message got home," he added.
    British frustration over the lopsided trade balance -
nearly six billion dlrs in Japan's favour last year - has
reached boiling point over the telecommunications issue, Howard
said.
    Howard has accused Japan of trying to shut out Cable and
Wireless from having a major role in the international
telephone market in Japan.
    "I want a fair crack of the whip for Cable and Wireless as I
want a fair crack of the whip for Britain generally in trading
relations," Howard said. "We simply aren't prepared to continue
to accept the imbalance which has been the position for such a
long time."
    Post and Telecommunications Ministry officials were unable
to comment on Howard's meeting with their minister.
    But Foreign Ministry officials said Foreign Minister
Tadashi Kuranari said that British exports to Japan are
increasing, but acknowledged the continuing imbalance in trade.
    Kuranari said he wants everyone in the telecommunications
dispute, including Cable and Wireless, to be satisfied.
    Howard told reporters that Britain was actively considering
possible retaliatory measures if it did not get its way on the
telecommunications issue.
    "There are measures which are under consideration if we
continue to suffer from the imbalance in our trading relations,"
he added, but gave no details.
    He said he had received a reassuring response from the
Japanese he has spoken with.
    "But of course we've had reassuring signs from the Japanese
for quite some time," he added. "What I've made plain is we
expect to see action."
    Howard ruled out using powers in Britain's Financial
Services bill to retaliate against unfair trade practices.
Those powers, which allow London to ban foreign financial firms
like banks from Britain, are designed to ensure U.K. Firms
equal access to overseas financial markets.


.I 2639
.C
earn
.W
CARDINAL INDUSTRIES <CDNI> RESTATES NET LOWER.
    VERNON, Conn., April 7 - Cardinal Industries Inc said it
restated earnings for the first nine months of 1986 to 235,000
dlrs, or nine cts per share, from 485,000 dlrs, or 18 cts,
reported previously due to the failure of an automated
accounting system installed in mid-year and replaced in the
fourth quarter.
    The company said its Reliance segment sustained a
significant operating loss for the full year 1986 due to the
accounting problems and increased promotional and advertising
expenses.  For the full year, it said it earned 284,000 dlrs,
or 10 cts a share, up from 271,000 dlrs, or 10 cts, in 1985.
    Cardinal Industries said revenues for the year were 30.7
mln dlrs, up from 23.0 mln dlrs in 1985.
    The company said for the first quarter of 1987, earnings
were about 48,000 dlrs, up from 13,000 dlrs or nil per share in
the year ago period.  The year-ago first quarter earnings,
however, have been restated from 101,000 dlrs or four cts per
share.  It said sales for the first quarter were about
8,363,000 dlrs, up from 6,636,000 dlrs.
    For the first half of 1986, the company said it restated
earnings to 141,000 dlrs or five cts per share from 340,000
dlrs or 12 cts per share reported previously.


.I 2643
.C
dlr;money-fx;
.W
EGYPTIAN CENTRAL BANK DOLLAR RATE UNCHANGED.
    CAIRO, April 7 - Egypt's Central Bak left the dollar rate
for Commercial banks for April 8 unchanged at 1.353/67 pounds.


.I 2671
.C
ship
.W
BRAZIL SEAMEN'S STRIKE ENDS.
    SAO PAULO, April 7 - A Brazilian seamen's strike, which
began on February 27 and has been tapering off for weeks, has
now ended, a seamen's spokesman said.
    The spokesman said the seamen had signed an agreement with
the state-owned Lloyd Brasileiro company on Saturday for a 120
pct salary rise.
    The national strike had been tailing off since mid-March as
seamen struck individual accords with companies. At the height
of the stoppage, seamen said about 200 ships were strike-bound.


.I 2673
.C
gold
.W
SOUTH AFRICAN GOLD HOLDINGS RISE IN MARCH.
    PRETORIA, April 7 - South African gold holdings rose 172.56
mln rand to 4.17 billion rand in March after rising 39 mln rand
to 4.0 billion rand in February, Reserve Bank figures show.
    In volume terms gold holdings rose to 5.51 mln ounces in
March from 5.26 mln ounces in February, valued at 757.24 rand
an ounce for March versus 754.59 rand an ounce for February.
    Total gold and foreign assets rose to 6.30 billion rand
from 6.22 billion, of which the gold content increased to 66.22
pct from 64.3 pct.
    Foreign bills remained at zero in March while investments
fell slightly to 105.69 mln rand from February's 106.56 mln
rand and other assets to 2.02 billion rand from 2.11 billion,
the figures showed.
    Total liabilities fell to 12.21 billion rand in March after
rising to 13.62 billion in February.


.I 2677
.C
copper
.W
MAGMA RAISES COPPER PRICE 0.50 CT TO 66.00 CTS.
    NEW YORK, April 7 - Magma Copper Co, a subsidiary of
Newmont Mining Corp, said it is raising its copper cathode
price by 0.50 cent to 66.00 cents a lb, effective immediately.


.I 2678
.C
earn
.W
******INTERCO INC 4TH QTR SHR 99 CTS VS 97 CTS.
Blah blah blah.

.I 2685
.C
nat-gas
.W
KANEB ENERGY <KEP> SAYS JURY RULES FOR IT.
    HOUSTON, April 7 - Kaneb Energy Partners Ltd, 82 pct owned
by Kaneb Services Inc <KAB>, said a juiry in Circuit Court of
Tuscaloosa County, Ala., has ruled in its favor and that of Jim
Walter Corp <JWC> against Sonat Inc <SNT> in a dispute over a
natural gas sales contract.
    The company said the suit was filed seekiong to enforce
Sonat's obligations under the contract to pay for methane gas
produced by the Brookwood Coal Degasificiation Project in the
Black Warrior Basin of Alabama, which is equally owned by Kaneb
and Jim Walter.
    Kaneb said the jury awarded it and Jim Walter about 22 mln
dlrs for required payments for deliveries through January 1987
plus interest through March 16 -- the full amount sought -- and
rejected Sonat's counterclaim of fraud.
    It said the decision may be appealed.


.I 2687
.C
acq
.W
WHITTAKER <WKR> COMPLETES SALE OF MEDICAL UNIT.
    LOS ANGELES, April 7 - Whittaker Corp said it has completed
the previously-announced sale of its wholly-oiwned Whittaker
General Medical Corp subsidiary to R.A.B. Holdings Inc for
undisclosed terms.
    Whittaker General Medical has annual revenues of about 450
mln dlrs.


.I 2691
.C
earn
.W
STARTEL <STAS> TO HAVE LOSS, SALES DROP.
    IRVINE, Calif., April 7 - StarTel Corp said it expects to
report a first quartter loss on a 25 to 30 pct revenue fall
from the year-earlier 2,524,000 dlrs.
    The company earned 64,000 dlrs in last year's first quarter.


.I 2692
.C
earn
.W
DATRON SYSTEMS <DTSI> SEES LOWER YEAR NET.
    SIMI VALLEY, Calif., April 7 - Datron Systems Inc said it
expects to report a falloff in earnings for the year ended
March 31 of about 25 pct from fiscal 1986 levels.
    In fiscal 1986, Datron earned 1,776,000 dlrs.
    The company said new orders for the year just ended,
however, rose 50 pct to 26 mln dlrs, bringing backlog at
year-end to 19 mln dlrs.


.I 2693
.C
earn
.W
******DATA GENERAL TO TAKE 18.2 MLN DLR PRETAX CHARGE TO REDEEM 150 MLN DLRS OF DEBT.
Blah blah blah.

.I 2694
.C
acq
.W
ENTERRA CORP <EN> SELLS TWO UNITS.
    HOUSTON, April 7 - Enterra Corp said it has completed the
sale of its Hale Fire Pump co and Macomson Machine Co
subsidiaries to a company formed by Los Angeles investment firm
McBain, Rose Partners for about 27 mln dlrs in cash.
    Both Hale and Macomson make fire pumps and related
equipment.


.I 2697
.C
acq
.W
<FMD INC> IN MERGER AGREEMENT.
    DENVER, April 7 - FMD Inc said it has agreed to acquire
Bankers Protective Financial Corp for 28,836,000 common shares,
subject to approval by the Texas State Board of Insurance.
    Bankers Protective is a life insurance company based in
Texas.


.I 2698
.C
earn
.W
<BEDFORD COMPUTER CORP> YEAR NET.
    LONDONDERRY, N.H., April 7 -
    Shr not given
    Net profit 1,033,000 vs loss 4,346,000
    Sales 6,060,000 vs 5,818,000
    NOTE: Company operating in Chapter 11 bankruptcy.
    1985 sales exclude contract revenues of 3,217,000 dlrs.
    1986 net includes reversal of 597,000 dlrs of reserves no
longer deemed necessary and tax credit 340,000 dlrs.


.I 2700
.C
earn
.W
INTERCO INC <ISS> 4TH QTR FEB 28 NET.
    ST. LOUIS, April 7 -
    Shr 99 cts vs 97 cts
    Net 31,011,000 vs 30,899,000
    Sales 651.5 mln vs 583.1 mln
    Year
    Shr 3.13 dlrs vs 2.92 dlrs
    Net 98,643,000 vs 92,347,000
    Sales 2.61 billion vs 2.51 billion
    NOTE: 1986 results reflect two-for-one stock split of July
23, 1986


.I 2704
.C
earn
.W
HOUSEHOLD INT'L <HI> PROJECTS EARNINGS RISE.
    PROSPECT HEIGHTS, ILL., April 7 - Household International
Inc said it expects its fully diluted earnings per share for
the first quarter to be about 35 pct above the same year-ago
period.
    It also looks for 1987 full-year fully diluted earnings to
be about 20 pct higher than the record 4.31 dlrs a share
reported for 1986.
    Chairman Donald Clark, in remarks prepared for delivery to
New York security analysts, cited increased earnings from
Household Financial Services and "excellent return on equity
from Household Manufacturing, combined with the impact of our
share repurchase program, will result in higher earnings per
share and improved return on equity in 1987."


.I 2712
.C
wheat;grain;
.W
U.K. INTERVENTION WHEAT SOLD TO HOME MARKET.
    LONDON, April 7 -  A total of 14,685 tonnes of British
intervention feed wheat were sold at today's tender for the
home market, the Home Grown Cereals Authority said.
    Bids amounted to 19,115 tonnes against offerings of 31,528.
Prices paid were at, or above, the prevailing intervention feed
wheat price of 120.71 stg per tonne.
    Grain traders said a large part of the tonnage on offer was
in stores, which would mean high transport costs to deficient
areas. The European Commission recently made available 70,000
tonnes for next week's tender.


.I 2718
.C
earn
.W
DATA GENERAL <DGN> TO TAKE 2ND QTR CHARGE.
    WESTBORO, Mass., April 7 - Data General Corp said it
expects to record an extraordinary pretax charge of about 18.2
mln dlrs in the second quarter ended March 28.
    The company said the charge will result from a redemption
of debt. On May 18, Data General said, it will redeem 150 mln
dlrs of outstanding 12-3/8 pct sinking fund debentures due
2015.
    The redemption price will be 111.138 pct of the total
principal amount of notes then outstanding plus accrued
interest to the redemption date, it said.
    No interest will accrue or will be payable on the
debentures starting May 18, the computer and communications
company said.
    Data General reported a loss of 1.8 mln dlrs or six cts a
share for the second quarter ended March 29, 1986. The loss
included a charge of 3.8 mln dlrs from redemption of
debentures. In the year-ago quarter, revenues fell less than
one pct to 318.8 mln dlrs.


.I 2721
.C
palm-oil;veg-oil;
.W
PALM OIL OUTPUT SEEN DROPPING SHARPLY - OIL WORLD.
    HAMBURG, April 7 - Malaysian and Indonesian palm oil
production is likely to drop sharply this year, due to lower
yields, the Hamburg-based newsletter Oil World said.
    The publication expects total Malaysian output during
Jan/Sept 1987 to decline by eight pct to 3.05 mln tonnes. For
East Malaysia, it put production during the period at 297,000
tonnes after 312,000 a year earlier and for West Malaysia 2.75
mln compared with just over 3.0 mln during Jan/Sept 1986.
    It said new plantings had slowed markedly in both
countries, but the effects of this will not be felt until
1988-90.
    Above normal yields during recent years resulted in trees
reacting to the stress by changing the sex ratio to more male
inflorescences and/or aborting more female, Oil World said.
    Yields per hectare are also likely to be adversely affected
this year by insufficient rain up to 25 months ago. This could
especially affect trees in West Malaysia during April/June,
while in East Malaysia the impact will be in February/April and
July/Dec, and in Indonesia July/Sept.
    Last year's cut in fertilizer use will hit this year's
yields and bigger effects are expected within the next three
years, Oil World said without elaborating.
    Opening stocks in West Malaysia at the start of this year
were put at only 565,000 tonnes compared with 914,000 in
January 1986, Oil World said.
    West Malaysian net exports are therefore expected to drop
500,000 tonnes to 2.54 mln during Jan/Sept, while those of East
Malaysia are likely to decline by 10 pct to 280,000 tonnes.
    Indonesian palm oil production is forecast to fall about
eight pct during Jan/May, but to rise from June on. Overall
Indonesian output during Jan/Sept is forecast to rise three pct
to 933,000 tonnes. Indonesian stocks as of April 1, however,
are put at only 65,000 tonnes compared with 160,000 a year ago.
    Indonesian export commitments and domestic requirements are
both running at high levels, Oil World said, and it expects the
country's imports to reach a record 110,000 tonnes during
Jan/Sept. The bulk of this will arrive during Feb/May, ahead of
the April elections and the religious Ramadan festival
throughout May, it said.
    Indonesian net exports, therefore, may fall by 29 pct to
350,000 tonnes, Oil World said. The possibility that recent
Indonesian palm oil purchases will not actually enter the
country but be transshipped to other countries to fulfill
Indonesia's export orders cannot be ruled out, it said.


.I 2722
.C
money-fx
.W
U.K. MONEY MARKET GIVEN FURTHER 284 MLN STG HELP.
    LONDON, April 7 - The Bank of England said it provided the
money market with a further 284 mln stg assistance in the
afternoon session.
    This takes the bank's total help so far today to 508 mln
stg and compares with its revised estimate of a 900 mln stg
shortage in the system which it earlier revised up from 850
mln.
    The central bank made outright purchases of bank bills
comprising 100 mln stg in band one at 9-7/8 pct, 56 mln stg in
band two at 9-13/16 pct, 112 mln stg in band three at 9-3/4 pct
and 16 mln stg in band four at 9-11/16 pct.


.I 2727
.C
wheat;barley;
.W
SESOSTRIS SELLS 18,000 TONNES BARLEY TO GREECE.
    MADRID, April 7 - Sesostris, the Spanish subsidiary of the
international grain trader Dreyfus, sold 18,000 tonnes of
barley to Greece for delivery from Mediterranean ports from
April 14 to 30, a company spokesman said. He gave no details on
price.
    The barley has a 14 pct humidity.


.I 2736
.C
acq
.W
BOW VALLEY <BVI> TO SELL NORWEGIAN SUBSIDIARY.
   Calgary, Alberta, April 7 - Bow Valley Industries Ltd said
it agreed to sell its wholly owned Norwegian subsidiary to Elf
Aquitaine Norge A/S of Stavanger, Norway for 13 mln Canadian
dlrs.
    The principal asset of the subsidiary, Bow Valley
Exploration Norge A/S, is  an eight pct interest in the Heimdal
gas and condensate field offshore Norway.
    The sale is expected to conclude by the middle of April,
Bow Valley said.


.I 2740
.C
gold
.W
SYNGOLD DEFINES RESERVES ON DEKA PROPERTY.
    Toronto, April 7 - <Syngold Exploration Inc> and <Corp
Falconbridge Copper> said they defined undiluted reserves of
911,000 tons of ore with an average grade of 0.43 ounces of
gold per ton in two separate deposits on the Deka property
located at Noranda, Quebec.
    Assay results from 20 suface holes drilled on 250 foot
centers indicate that the Donalda number one deposit contains
possible reserves of 611,000 tons at an average grade of 0.48
ounces of gold per ton.
    The number one deposit's reserves are contained between a
vertical depth of 750 and 1200 feet at a strike length of 900
feet.
    Reserves of the Donalda number-two deposit, located 1,000
feet below the number-one deposit, were recalculated at 300,000
tons with an average grade of 0.33 ounces of gold per ton.
    Syngold has earned a 20 pct interest in the Deka property
from the operator, Corp Falconbridge Copper.


.I 2758
.C
acq
.W
******EMERY AIR FREIGHT SAID HUTTON GROUP ENDS OFFER FOR PUROLATOR COURIER.
Blah blah blah.

.I 2770
.C
acq
.W
NORANDA BUYS SHARES OF SANIVAN GROUP.
    Toronto, April 6 - <Noranda Inc> said it agreed to buy an
initial 1,000,501 treasury shares of <Sanivan Group Inc> at
5.25 dlrs per share.
    Noranda also has an option until June 30, 1988, to acquire
an additional 1,000,501 Sanivan treasury shares at 5.75 dlrs
per share.
    Sanivan is the largest hazardous waste management company
in Canada.


.I 2773
.C
acq
.W
HUTTON <EFH> ENDS PUROLATOR <PCC> BID.
    WILTON, Conn., April 7 - Emery Air Freight Corp said it has
entered into an agreement with E.F. Hutton Group Inc EFH under
which Hutton will terminate its merger agreement with Purolator
Courier Corp and its pending 35-dlr-per-share tender offer,
effective April 13.
    Under its merger agreement, Hutton has the right to
unilaterally terminate the merger agreement under certain
circumstances, including its receipt of less than 66-2/3 pct of
Purolator shares or the start of a higher competing tender
offer, such as Emery's competing 40 dlr per share offer for
Purolator stock.
    Yesterday, Hutton's PC Acquisition Corp subsidiary extended
its tender offer, which was to have expired at midnight, for
two more days.  It said it only about 450,000 shares, or 6.5
pct, of Purolator shares had been tendered and not withdrawn,
down from an 11.5 pct interest held earlier.
    Emery's bid expires April 28.
    Emery said pending the termination of PC Acquisition's
merger agreement, PC has released Purolator from an agreement
not to discuss Emery's acquisition proposal with Emery. Emery
said as a result it is renewing its request that Purolatr enter
into merger negotiations with it.
    Emery said if it were to acquire 51 pct of Purolator shares
or control of the Purolator board, it has agreed not to dispute
PC Acquisition's right to receive fees that Purolator agreed to
pay if PC were unsuccessful in acquiring control of Purolator
due to the acquisition of control by another party.
    The company said it has also agreed to let Purolator pay
all of PC Acquisition's documented expenses in connection with
the merger agreement up to three mln dlrs and Emery has agreed
to pay the amounts itself should Purolator fail to do so.


.I 2774
.C
gold;reserves;
.W
SOUTH AFRICAN GOLD HOLDINGS RISE IN MARCH.
    PRETORIA, April 7 - South Africa gold holdings rose 172.56
mln rand to 4.17 billion rand in March after rising 39 mln rand
to 4.0 billion in February, Reserve Bank figures show.
    In volume terms gold holdings rose to 5.51 mln ounces in
March from 5.26 mln ounces in February, valued at 757.24 rand
an ounce for March versus 754.59 rand an ounce for February.
    Total gold and foreign assets rose to 6.30 billion rand
from 6.22 billion, of which the gold content increased to 66.22
pct from 64.3 pct.
    Foreign bills remained at zero in March while investments
fell slightly to 105.69 mln rand from February's 106.56 mln
rand and other assets to 2.02 billion rand from 2.11 billion,
the figures showed. Total liabilities fell to 12.21 billion
rand in March after rising to 13.62 billion in February.


.I 2778
.C
grain;barley;
.W
SPAIN TO SELL BARLEY TO SAUDI ARABIA.
    MADRID, April 7 - Spain will shortly sign with Saudi Arabia
an order for barley for April/May delivery, trade sources said.
    They gave no details on amounts or prices, but said it
would be a "major" order.
    Saudi Arabia bought 500,000 tonnes of Spanish barley last
year.


.I 2814
.C
dlr;money-fx;
.W
******VOLCKER SAYS FURTHER SIZEABLE DECLINE IN DOLLAR COULD BE COUNTERPRODUCTIVE.
Blah blah blah.

.I 2817
.C
coffee
.W
BRAZILIAN COFFEE RAINFALL.
    SAO PAULO, APRIL 7 - THE FOLLOWING RAINFALL WAS RECORDED IN
THE AREAS OVER THE PAST 24 HOURS
    PARANA STATE: UMUARAMA NIL, PARANAVAI NIL, LONDRINA NIL,
MARINGA NIL.
    SAO PAULO STATE PRESIDENTE PRUDENTE NIL, VOTUPORANGA NIL,
FRANCA NIL, CATANDUVA NIL, SAO CARLOS NIL, SAO SIMAO NIL.
    MINAS GERAIS STATE: GUAXUPE 33.0 MILLIMETRES, TRES PONTAS
5.0 MM.

.I 2819
.C
trade
.W
******VOLCKER SAYS EXCHANGE RATE ADJUSTMENT ENOUGH TO NARROW U.S. TRADE DEFICIT.
Blah blah blah.

.I 2825
.C
trade
.W
******VOLCKER SAYS REDUCING U.S. BUDGET DEFICIT NEEDED TO IMPROVE TRADE BALANCE.
Blah blah blah.

.I 2832
.C
trade
.W
******VOLCKER SAYS MORE STIMULUS ABROAD NEEDED FOR ADJUSTMENTS IN TRADE BALANCES.
Blah blah blah.

.I 2835
.C
wheat;grain;barley;corn;sorghum;
.W
GRAIN RESERVE HOLDINGS -- USDA.
    WASHINGTON, April 7 - The U.S. Agriculture Department gave
a preliminary breakdown of grain in the Farmer-Owned Grain
Reserve as of April 1, with comparisons, based on telephone
reports from farmers filed with the department's Kansas City
field office, in mln bushels --
           April 1   Previous
 Wheat     657.6      659.7
 Corn    1,406.5    1,397.0
 Sorghum    95.8       95.5
 Barley    122.1      122.0
 Oats        3.7        3.7
 


.I 2837
.C
earn
.W
ON-LINE SOFTWARE <OSI> 3RD QTR FEB 28 NET.
    FORT LEE, N.J., April 7 -
    Shr primary 34 cts vs 17 cts
    Shr diluted 33 cts vs 17 cts
    Net 1,487,000 vs 686,000
    Rev 19.8 mln vs 8.8 mln
    Nine months
    Shr primary 77 cts vs 43 cts
    Shr diluted 75 cts vs 43 cts
    Net 3,240,000 vs 1,710, 000
    Rev 42.2 mln vs 25.0 mln
    NOTE: Company's full name is On-Line Software International
Inc.
    The qtr and year-to-date results include the operations,
since the end of October 1986, of a business purchase from
Martin Marietta Corp <ML>.
    In fiscal 1987 ending May 31 the company initially adopted
FASB statement number 86 and, as required, capitalized certain
software deveopment costs. During the qtr and nine months
period ended Febraury 28, 1987 the company capitalized pre-tax
amounts of 746,000 dlrs and 1,445,000 dlrs of development
costs, respectively.


.I 2839
.C
wheat;grain;barley;corn;sorghum;
.W
GRAIN RESERVE HOLDINGS BREAKDOWN.
    WASHINGTON, April 7 - The U.S. Agriculture Department gave
the following breakdown of grain remaining in the farmer-owned
grain reserve as of April 1, in mln bushels, by reserve number
--
             I    II  III    IV      V      VI
 Wheat      nil  nil  0.1   0.3    10.5  479.7
 Corn        --   --   --   4.1 1,231.9     --
 Sorghum-x   --   --   --   0.1    38.8     --
 Barley      --   --   --   0.1    73.9     --
 x - mln cwts. Note - USDA says above totals may not match
total in reserve numbers.


.I 2852
.C
dlr;money-fx;trade;
.W
RUDING AGAINST FURTHER DOLLAR FALL, TRADE CURBS.
    WASHINGTON, April 7 - Shifts in domestic economic policy,
not a further fall in the dollar or trade restrictions, are the
key to reducing imbalances in trade and payments, Dutch Finance
Miniister H. Onno Ruding said.
    Ruding told a meeting of the World Trade Forum here that
protectionism would naturally lead to retaliation and aggravate
the problems of heavily indebted developing countries.
    "The main contribution towards resolving the still enourmous
U.S. trade deficit is not repeat not a further fall in the
dollar, is not still more protectionism in your country."
    "No, it is - like in other countries - changes in domestic
economic and financial policies," Ruding said.
    Ruding said he was less worried about a crisis of the
weakening dollar than he was in January before the Paris accord
to stabilize foreign exchange rates.
    He said the highest priority should be given to policy
changes in the United States, especially reducing the budget
deficit and encouraging domestic savings.
    But he said other countries, such as Japan and West
Germany, also needed to take greater steps toward reducing
their trade surpluses.


.I 2853
.C
acq
.W
CAROLYN BEAN <CBEN> COMPLETES ACQUISITION.
    SAN FRANCISCO, April 7 - Carolyn Bean Publishing Ltd said
it has completed the acquisition of greeting card company
Millen Cards, which had sales of over 1,500,000 dlrs in 1986,
for undisclosed terms.
    The company said 90 pct of Millen's cards have been sold in
the northeast and mid-Atlantic states, but Bean expects to
increase sales to 2,500,000 dlrs this year by distributing the
line nationally.
    Millen specializes in Jewish religious cards and also sells
traditional greeting cards.


.I 2857
.C
acq
.W
CHESAPEAKE <CSK> SEEKS TO SELL UNIT.
    WEST POINT, Va., April 7 - Chesapeake Corp said it has
retained Salomon Inc <SB> to help it sell Plainwell Paper Co
Inc, a maker of premium coated and uncoated printing papers and
technical specialty papers with a capacity of 85,000 short tons
a year.
    The company said it has decided to sell Plainwell in ordfer
to focus on the production of kraft and tissue products,
containers and treated wood products.


.I 2860
.C
copper;zinc;
.W
BALL <BLL> TO SUPPLY PENNY BLANKS TO MINTS.
    MUNCIE, IND., April 7 - Ball Corp said it was awarded a
one-year 12,750,000 dlr contract to supply copper-plated zinc
penny blanks to the U.S. mints in Philadelphia and Denver.
    The new contract, effective in June, calls for shipping
23,200,000 pounds of blanks to the mint in Philadelphia and
7,600,000 pounds to Denver. It said the blanks will be
manufactured in Greenville, Tenn.
    Ball began supplying blanks to the San Francisco and West
Point mints in 1981 when the penny's content was changed to
zinc from copper.


.I 2872
.C
trade
.W
******VOLCKER URGES INDUSTRIAL NATIONS TO KEEP TRADE MARKETS OPEN TO FOSTER GROWTH.
Blah blah blah.

.I 2873
.C
earn
.W
TYCO LABORATORIES <TYC> 3RD QTR FEB 28 NET.
    EXETER, N.H., April 7 -
    Shr primary 58 cts vs 66 cts
    Shr diluted 54 cts vs 66 cts
    Net 10.1 mln vs 11.4 mln
    Revs 266.2 mln vs 194.6 mln
    Avg shrs 17.4 mln vs 17.1 mln
    Nine mths
    Shr primary 1.78 dlrs vs 1.58 dlrs
    Shr diluted 1.65 dlrs vs 1.58 dlrs
    Net 30.9 mln vs 27.1 mln
    Revs 823.8 mln vs 511.0 mln
    Avg shrs 17.4 mln vs 17.3 mln
    NOTE: prior qtr and nine mths include 3.1 mln dlrs, or 18
cts per share, from gain on partial settlement on an insurance
claim.
    nine mths 1987 includes seven cts gain for partial
settlement on an insurance claim.
   Results of Flow Control operations have been included since
its acquisition from ITT Corp on Jan 31 1986.
   nine mths prior includes extraordinary gain 2.3 mln dlrs, or
14 cts per share, for replacement of a pension plan.


.I 2883
.C
earn
.W
GOLD FIELDS OF S. AFRICA PROFIT FALLS IN QUARTER.
    JOHANNESBURG, April 7 - 1ST QTR TO MARCH 31
    Working profit 487.50 mln rand vs 559.59 mln
    Tax 274.28 mln vs 302.15 mln
    Net 264.32 mln vs 300.99 mln
    Tonnes milled 3.74 mln vs 3.72 mln
    Gold production 30,865 kgs vs 30,236 kgs
    Gold revenue 846.05 mln rand vs 907.36 mln
    Working costs 358.56 mln vs 347.77 mln
    Avg price per kg 27,371 rand vs 29,964
    NOTE - Full name of company is Gold Fields of South Africa
    Ltd <GLDF.J>.


.I 2886
.C
dlr;money-fx;trade;
.W
VOLCKER WARNS AGAINST SIZEABLE DLR DECLINE.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said a further large drop in the value of the dollar
could be counterproductive for world economic growth.
    Testifying before the Senate Banking Committee, Volcker
said that Europe and Japan were slowing exports and that growth
in those countries was also decreasing.
    "In that kind of situation, further sizeable depreciation
of the dollar could well be counterproductive," he said.
    Domestic expansion in foreign industrial countries has not
been enough to offset the effects of slower exports, Volcker
said.
    On the value of the dollar, Volcker said he could not say
whether it should be higher or lower to restore balance in
trade.
    "What we do know is that a substantial exchange rate
adjustment has already been made," he said.
    "That adjustment should be large enough, in a context of a
growing world economy and fiscal restraint in the United
States, to support the widespread expectations of a narrowing
in the real trade deficit in the period ahead," he said.
    Volcker said U.S. exports were now growing substantially
while import growth should slow.
    Volcker said that to improve the trade deficit with a
minimum of inflationary pressure, the United States would have
to slow its spending growth.
    It would also have to achieve a better balance between
investment and domestic savings if it wants to be able to
dispense with foreign capital.
    "The constructive way to work in the needed direction would
be to reduce our budget deficit, year by year, paving the way
for improvements in our trade accounts," he said.
    Relying on depreciation of the dollar alone would risk
renewed inflation, he said.


.I 2887
.C
earn
.W
WALL STREET STOCKS/MARION LABS <MKC>.
    NEW YORK, April 7 - Marion Laboratories Inc's stock rose
sharply today after the company presented a bullish earnings
scenario at a meeting for pharmaceutical analysts Monday,
traders and analysts said.
    The company said it expects earnings for fiscal 1987,
ending June 30, to rise more than 75 pct over a year ago.
    That pronouncement encouraged analyst David Crossen of
Sanford C. Bernstein and Co to raise his earnings estimates for
the company to 1.28 dlrs a share in 1987, compared to his
previous estimate of 1.20 dlrs a share. Last year the company
earned 70 cts a share.
    Marion's stock gained 3-1/4 to 75-1/2.
    At the meeting of pharmaceutical analysts, Marion's
president Fred Lyons Jr. said Wall Street eanrings estimates of
1.10-1.15 dlrs a share for fiscal 1987 "are expected to cause
even the aggressive side of this range to be 10 to 15 cts low."
    Lyons said the strong performance in the second half of
this year will result from the fourth quarter introduction of
90 mg and 120 mg Cardizem tablets. Analyst Crossen said that
Cardizem, which treats angina, is also expected to be approved
for the treatment of hypertension by the end of the year.
    Crossen said "because Marion is still just a small company,
the growth of Cardizem is having a big impact on the bottom
line." He raised fiscal 1988 earnings estimates to 2.15 dlrs a
share from his previous estimate of 2.05 dlrs a share.
    "The company has a broad new product pipeline in the
industry and as far as I am concerned, it is the most
innovative company in the business," he said.
    For the five years through 1991, Crossen expects Marion to
have a growth rate of 55 pct.


.I 2891
.C
trade
.W
U.S. CALLS FOR GREATER GATT CHECKS ON TRADE.
    GENEVA, April 7 - The United States has appealed for
stronger powers for the General Agreement on Tariffs and Trade
(GATT) to enforce world trade rules.
    The call by U.S. Deputy Trade Representative Michael Smith
at a special committee meeting into the future of GATT follows
a series of bilateral trade rows which have clouded efforts by
the 93-nation body to promote fair trade.
    Today's meeting was part of the Uruguay trade round
launched by ministers last September. The round, which covers
13 areas of trade in agriculture, manufactured goods and
services will take four years to negotiate.
    Smith called for boosting GATT's links with financial
institutions such as the International Monetary Fund and World
Bank. He also urged greater involvement of trade ministers to
ensure the success of the Uruguay Round.
    "The GATT as an institution needs to be strengthened to
assure that the GATT plays its proper role in management of the
world trading system and the global economy," Smith said.
    "Rules can and will be ignored if the institution is weak,
or perceived as unable to adapt to the changing world economy."
    He also also urged that member states be accountable to
each other for their trade policies.
    Smith, who flies to Brussels today for talks with European
Community (EC) officials, told Reuters the committee wanted to
stress GATT's importance and did not discuss specifics.
    "We are interested in more periodic ministerial
involvement...Whether in formal or informal meetings," he said.
    GATT's ruling council is due to hear a complaint from the
12-nation EC on April 15 about the U.S.-Japanese accord on
semiconductors. The EC charges the accord breached GATT trade
rules by allowing Tokyo to set minimum prices for Japanese
chips sold in third countries and is requesting a GATT dispute
panel be set up to review the agreement.
    President Reagan, who strongly supported the Uruguay trade
round to promote freer trade, has said Washington will impose
tariffs against Japanese electronic goods.
    He said Tokyo had not shown willingness to open its markets
to U.S. Exports.


.I 2898
.C
oilseed;soybean;soy-oil;
.W
CHINA SOYBEAN OUTPUT DOWN SLIGHTLY - USDA REPORT.
    WASHINGTON, April 7 - China's soybean crop this year is
forecast at 11.5 mln tonnes, down slightly from 11.55 mln
estiamted for last year, the U.S. Agriculture Department's
officer in Peking said in a field report.
    The report, dated April 2, said Chinese imports this year
are projected at 300,000 tonnes unchanged from last year's
level.
    Exports are forecast to increase to 1.0 mln tonnes from
800,000 tonnes exported last year, the report said.
    Imports of soybean oil are estimated at 200,000 tonnes,
also unchanged from last year.


.I 2902
.C
dlr;money-fx;dmk;
.W
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES.
    ANKARA, April 7 - The Turkish Central Bank set a
Lira/Dollar rate for April 8 of 784.50/788.42 to the Dollar,
down from the previous 784.35/788.27.
    The Bank also set a Lira/Mark rate of 430.60/432.75 to the
Mark, down from the previous 429.35/431.50.

.I 2929
.C
trade
.W
VOLCKER URGES QUICK AID TO DEBTOR NATIONS.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said that debtor nations have made much progress in
laying the groundwork for economic growth, but a solution to
world debt difficulties was endangered by inaction on new
financing.
    "There is clearly a danger that adequate financing
arrangements are not being negotiated and put in place in a
timely way," Volcker told the Senate Banking Committee.
    The borrowing countries need to be able to proceed with
confidence that the necessary funds will be available to them,
he said.
    Brazil has the potential for becoming a leading world
economic power, but it is in a difficult position today,
Volcker said.
    He said it will take a concerted effort to regularize
Brazil's external payments.
    "The key prerequisite is clearly in the hands of Brazilian
authorities," he said.
    Both Brazil and its creditors have a strong incentive to
work together, Volcker said.
    Regarding trade imbalances, Volcker said that it was
critically important that markets be kept open by the
industrial nations.
    In addition, the United States must reduce its budget
deficit and foreign nations need to provide stimulus to their
domestic economies, Volcker said.
    "We need time for those actions and the earlier
depreciation to work their effects," he said.



.I 2932
.C
money-fx;money-supply;
.W
BUNDESBANK RETAINS MONEY SUPPLY POLICY.
    FRANKFURT, April 7 - Bundesbank council member Lothar
Mueller said the bank has not given up its money supply policy
and that restraining money supply growth does not always mean
pushing up interest rates.
    Mueller said in an article for the Boersen Zeitung
financial daily that a monetary policy which took into account
exchange rate expectations and capital flows could not be
confused with an exchange rate oriented policy.
    The article followed international press speculation that
the Bundesbank had abandoned money supply targetting in favour
of an exchange rate policy.
    Mueller, a member of the Bundesbank council in his position
as president of the regional state central bank in Bavaria,
noted that the Bundesbank's decision in January to cut leading
interest rates amid continuing strong monetary growth had led
some people to think it was dropping monetary targetting.
    "Simply to ignore the external economic context would be
risky and dangerous for monetary policy," he explained.
    Mueller said the cuts in official interest rates had put an
end to interest rate speculation. The Bundesbank could now
assume that upward pressure on the mark would ease and currency
inflows slow down.
    Lower money market rates, achieved by widening short and
long term interest rate differentials, also encouraged
investors to re-invest funds parked in liquid accounts, Mueller
said.
    The measures therefore aimed clearly at bringing monetary
growth back onto the desired path, he said.
    "Finally, of course, and there is no need to keep this
quiet, the cut in interest rates was also in line with the
changed economic situation of the last few months," he added.
    "All in all, the Bundesbank in no way abandoned its money
supply policy with the January discount rate cut, despite
suppositions to the contrary," Mueller said.
    "Keeping money supply developments in check is not always
synonymous with raising interest rates, especially when
excessive liquidity due to inflows from abroad, rather than
growth in bank credits, is the cause of rising monetary
holdings of non-banks," Mueller said.
    Now that West Germany no longer ran large external deficits
other concepts were needed for monetary policy.
    Mueller said it would be both difficult and dangerous for
monetary policy to pursue a specific mark/dollar exchange rate.
    In any case, the exchange rate partly depends on U.S.
Currency and budgetary policy and the U.S. Economy, he said.
    But an exchange rate orientation would also mean the end of
a strict stability policy because both interest rates and
liquidity would be affected by required currency intervention
and could no longer be steered autonomously by the Bundesbank.
    Even interest rates are not in the centre of the
Bundesbank's considerations, but reflect competition and other
market conditions, Mueller said.
    A cut in bank liquidity will not directly influence central
bank money stock, the Bundesbank's main money supply indicator.
    This does not reflect banking liquidity, but the liquidity
of industry and households which cannot be directly reached
with the Bundesbank's instruments, Mueller said.
    The less dependent non-banks are on bank credits, the
harder it is to steer money supply. This has increasingly been
the case recently, because non-banks have received considerable
sums from current account surpluses and capital imports.
    "If the Bundesbank had tried to brake the money supply rise
with higher interest rates, as would have been appropriate if
credit was growing excessively, it would not only have missed
its target but probably even set off further inflows," he said.
    Mueller said growth in money supply was still too high.
    In the last three months money stock grew at an annual rate
of seven pct, down from 10 pct in the previous quarter.
    The growth curve has therefore come closer to the three to
six pct 1987 target corridor for central bank money stock
growth, pointing to the success of the current policy, he said.
    But high monetary stocks can be a warning sign and there
should be no change in priorities. "Monetary policy must be
first and foremost stability policy and successful stability
policy is money supply policy -- nothing else," he said.


.I 2933
.C
money-fx
.W
VOLCKER URGES GREATER EXCHANGE RATE STABILITY.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said international policymakers should make improving
the stability of exchange rates a major priority.
    In testimony before a Senate Banking subcommittee, Volcker
said he does not have any specific proposals for improving
exchange rate stability, but thought it was worthy goal.
    "I do think we ought to be thinking about and working toward
greater exchange rate stability," Volcker said. "I think that the
objective of greater exchange rate stability ought to loom
larger among our various policy priorities."


.I 2941
.C
money-fx
.W
ITALY SAYS G-7 GIVES CHANCE TO VERIFY TOKYO ACCORD.
    ROME, April 7 - This week's Group of Seven (G-7) meeting in
Washington provides an opportunity to verify an accord reached
at the Tokyo summit last May to include Italy and Canada in
Group of Five (G-5) talks on management of the international
monetary system and related issues, the Italian Treasury said.
    It said in a statement the G-7 meeting, which Italy plans
to attend, will provide a forum for considering the Tokyo
accord in the light of events in Paris in February this year.
    On February 22, Italy boycotted a meeting in Paris of its
G-7 partners - the United States, Japan, West Germany, France,
Britain and Canada - after being excluded from an earlier
session of talks involving G-5 members.
    Today's statement from the Italian Treasury said-
    "Nobody denies the existence of G-5 but we should like it to
be remembered that the Tokyo accords provided for the
enlargement of the group to Italy and Canada whenever "the
management or the improvement of the international monetary
economic policy measures are to be discussed or dealt with.'"
    Italy refused to attend the Paris G-7 meeting on the
grounds that G-5, grouping the United States, Japan, West
Germany, France and Britain, had reduced Italy's role to rubber
stamping agreements already taken.
    The Italian Treasury said today that Italy was "certain that
this time incidents would not occur."
    But it said it would be opportune to look in depth at the
role and the procedures of G-7 in relation to those of G-5.


.I 2946
.C
ship;crude;
.W
KUWAIT SAID SEEKING FOREIGN PROTECTION FOR OIL.
    WASHINGTON, April 7 - Kuwait has asked at least four
countries, including the United States, Soviet Union, Britain
and China, for temporary use of their flags or tankers to
protect Kuwaiti oil shipments in the troubled Persian Gulf,
Reagan Administration officials said.
    The officials confirmed a New York Times report that Kuwait
wants to transfer some of its oil tankers to U.S. or Soviet
registration in hopes Iran would be reluctant to launch new
"Silkworm" missiles at superpower flags.
    The United States has vowed to keep the gulf open to
international oil traffic and has warned Tehran against using
the Chinese-made missiles recently installed in Iran near the
mouth of the gulf.
    "They (the Kuwaitis) have also asked Britain, China and
possibly some other European countries to lease tankers to
carry their oil," one of the administration officials, who asked
not to be identified, told Reuters.
    The United States is considering the request to temporarily
transfer Kuwaiti ships to American registration, but such a
move could create insurance and other problems, the officials
said.
    U.S. defense officials told Reuters yesterday that Kuwait
had decided for at least the time being not to accept a U.S.
offer to use American warships to escort its tankers in the
gulf, where both Iran and Iraq have been attacking shipping.


.I 2949
.C
earn
.W
ROLLS APPROACHES FLOAT WITH PROFITS SET TO RISE.
    By Iain Pears, Reuters
    LONDON, April 7 - State-owned engine maker <Rolls Royce
Plc> launches its prospectus for privatisation tomorrow with
many analysts forecasting higher profits this year. But it is
likely to miss contracts to power the proposed <Airbus
Industrie> A340 aircraft.
    The company's so-called "pathfinder prospectus" gives all the
details of its stock market flotation except for the price at
which shares will be offered.
    Last month, the company announced that pretax profits rose
in 1986 to 120 mln stg from 81 mln the year before.
    Brokers Barclays de Zoete Wedd, BZW, sees 155 mln profit
for 1987.
    Analyst Tim Harris of Phillips and Drew said rising profits
and a low tax charge would be offset by the fact that Rolls
operated in a sector which traditionally attracted low ratings.
    Assuming the company was valued at around eight times
earnings, this would give a selling price valuing it at about
1.2 billion, though he said the recent good performance of the
aerospace sector could nudge this figure upwards.
    BZW is currently forecasting a higher sale price at between
1.5 billion and 1.7 billion.
    The price will be increased by it being likely to have much
of its debt wiped off by a government anxious to assure the
company's health when it has to fend for itself. Rolls was
rescued from bankruptcy and taken into state ownership in 1971.
    When the government announced the sale, it said it would
inject permanent capital equivalent to net debt -- around 250
mln stg at end-1986 -- into the company.
    Analysts noted this was necessary to ensure Rolls a credit
rating to match those of its main competitors such as General
Electric Co <GE.N> and United Technologies Corp's <UTX.N> Pratt
and Whitney unit.


.I 2971
.C
dlr;money-fx;
.W
VOLCKER SEES DOLLAR AS FACTOR IN MONETARY POLICY.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said the performance of the dollar in exchange markets
could be a factor in the U.S. central bank's decisions on
monetary policy.
    "The performance of the dollar in the exchange market might
become a factor bearing on our provision of reserves," Volcker
said in testimony to the Senate Banking Committee.
    He said that fiscal policy changes in the United States,
Germany and Japan would be more important that intervention to
instill confidence in current exchange rate levels.
                      


.I 2977
.C
money-supply
.W
FED EXPECTED TO SET CUSTOMER REPURCHASES.
    NEW YORK, April 7 - The Federal Reserve is expected to
intervene in the government securities market to supply
temporary reserves indirectly via customer repurchase
agreements, economists said.
    They said the Fed is expected to execute anywhere from
1.5-2.0 billion dlrs of customer repos to offset seasonal
pressures on bank reserves.
    Federal funds, which averaged 6.20 pct yesterday, opened at
6-1/8 pct and remained there in early trading.
   


.I 2995
.C
trade
.W
VOLCKER PUSHES SPENDING CUTS OVER TRADE BILL.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said reducing the federal budget deficit was a more
important goal for Congress than drafting trade legislation.
    "Reduce the budget deficit," Volcker responded when asked by
a member of the Senate Banking Committee about trade
legislation priorities.
    "If you don't deal with the budget deficit, everything else
you do is going to be counterproductive," he said.


.I 3011
.C
acq
.W
AMERICAN SPORTS ADVISORS <PIKS> TO LIQUIDATE.
    CARFLE PLACE, N.Y., April 7 - American sports Advisors Inc
said it has agreed to sell its sports handicapping and
publication business to Professor Enterprises for about
1,650,000 dlrs and intends to liquidate after closing.
    The transaction is subject to shareholder approval.
    Professor is owned by American Sports president Edward C.
Horowitz and Mike Warren, it said.


.I 3017
.C
money-fx
.W
******VOLCKER SAYS RESTRICTIVE MONETARY POLICY WOULD HURT INVESTMENT.
Blah blah blah.

.I 3038
.C
money-fx
.W
VOLCKER SEES TIGHT POLICY HURTING INVESTMENT.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said a restrictive monetary policy would be damaging to
investment and that a better course would be to restrain
spending.
    "A restrictive monetary policy would hit investment. You
don't want to put interest rates up unless you have to," Volcker
told the Senate Banking Committee.
    "That is not a constructive way to proceed," he said.
    Volcker said that given a choice between squeezing the
budget deficit or squeezing investment, he would favor
squeezing the budget deficit.
    In response to a question about banks, Volcker said he
would be pleased if Congress decided to give banks a tax
writeoff as an incentive for them to take greater reserves
against loans to debtor countries.
    "If you give a tax writeoff for reserving against loans,
then we will see more reserving and that would make me happy,"
Volcker told Committee Chairman Sen William Proxmire (D-Wisc).


.I 3052
.C
earn
.W
NEW BEDFORD INSTITUTION FOR SAVINGS <NBBS> YEAR.
    NEW BEDFORD, Mass., April 7 -
    Net 12.3 mln vs 6,438,000
    NOTE: Company went public in March.


.I 3074
.C
earn
.W
PHOTRONICS CORP <PHOT> YEAR FEB 28 NET.
    HAUPPAUGE, N.Y., April 7 -
    Shr 64 cts vs 38 cts
    Net 1,062,000 vs 585,000
    Sales 13.6 mln vs 9,262,000


.I 3076
.C
earn
.W
OCEAN BIO-CHEM INC <OBCI> YEAR NET.
    FORT LAUDERDALE, Fla., April 7 -
    Shr eight cts vs seven cts
    Net 215,821 vs 196,873
    Sales 3,112,571 vs 2,649,003


.I 3082
.C
acq
.W
TELE-COMMUNICATIONS <TCOMA> SELLS CABLE SYSTEMS.
    MIAMI, April 7 - Knight-Ridder Inc <KRI> said its TKR Cable
Co joint venture with Tele-communications Inc has signed a
letter of intent to acquire cable television systems with
55,000 basic subscribers in Wildwood, N.J., and Ramapo and
Warwick, N.Y., from Tele-Communications for undisclosed terms.


.I 3086
.C
earn
.W
ENVIRONMENTAL POWER CORP <POWR> YEAR NET.
    BOSTON, April 7 -
    Shr profit 25 cts vs loss 15 cts
    Net profit 998,000 vs loss 612,000
    Revs 8,086,000 vs 365,000


.I 3092
.C
bop;trade;
.W
GERMAN LONG-TERM CAPITAL INFLOW SLUMPS IN FEBRUARY.
    FRANKFURT, April 7 - The inflow of long-term capital into
West Germany slumped to 606 mln marks in February from
January's record 11.91 billion, with foreign purchases of
German bonds and shares declining sharply, the Bundesbank said.
    While foreigners bought only four billion marks worth of
German bonds in February after 13 billion in January, they sold
a net 500 mln marks in shares and promissory notes of public
authorities after sales worth 300 mln in January.
    With German investors' purchases of foreign securities
steady around 1.3 billion marks, only 2.2 billion marks were
imported through securities transactions, after 11.2 billion.
    Direct investment abroad led to a capital outflow of 1.60
billion marks in February after 2.83 billion in January.
    There was a deficit of 8.14 billion marks in the short-term
capital account after a surplus of 194 mln in January.
    Banks alone exported some 8.6 billion marks in funds while
domestic companies increased their short-term financial assets
abroad by 700 mln. But public authorities received some one
billion marks from abroad, the Bundesbank said in a statement.
    Combining long and short term capital outflows, West
Germany recorded a net outflow of 7.53 billion marks in
February against a net inflow of 11.91 billion in January.
    The Bundesbank confirmed the German trade surplus widened
to 10.45 billion marks in February from January's 7.20 billion.
    Taking the two months together the seasonally adjusted
surplus was slightly below the figure for the previous two. In
terms of current as well as constant prices, the narrowing of
the surplus was progressing, the bank said.
    Germany's current account surplus widened to 6.63 billion
marks in February from 4.79 billion in January, but was down on
the 7.26 billion figure for February 1986. Seasonally adjusted,
the February current account surplus narrowed against January.
    While exports in February fell a half pct against the same
month last year, imports fell 10-1/2 pct largely due to the
drop in prices. Exports grew three pct in volume and imports
two pct.
    In the balance of services, a fall in net investment income
led to a 300 mln mark deficit in February after a 300 mln mark
surplus in January.
    The deficit in transfer payments widened to 3.70 billion
marks from 2.69 billion, largely due to a sharp jump to 2.3
billion marks from 200 mln in payments to the European
Community budget.


.I 3109
.C
wheat;grain;
.W
EC SOURCES SAY UK WHEAT PLAN YET TO BE APPROVED.
    BRUSSELS, April 7 - The European Commission has not taken a
decision on applications from the British government for the
release of 200,000 tonnes of intervention feed wheat onto the
British market in May and June, Commission sources said.
    They said last week's cereals management committee agreed
to release 70,000 tonnes of feed wheat through weekly tenders
between April 14 and May 26. It also indicated it planned to
allow the release of another 30,000 tonnes from April 23.
    However, it decided to leave consideration of the release
of further wheat until later.
    The British government had applied for the release of a
further 100,000 tonnes in both May and June from British
intervention stores to prevent market prices rising.
    However, the sources said, the Commission wanted to review
the market situation nearer the time before giving its
approval.
    The Commission was given new powers last year to control
the release of intervention cereals onto the market, the
sources noted.
    Following last week's committee meeting, the U.K. Ministry
of Agriculture said the Commission had given an assurance that
additional quantities of intervention wheat would be made
available in May and June. It also said that it was envisaged
that monthly releases would be at least 100,000 tonnes,
depending on the state of the market.
    This lead to the widespread assumption that the Commission
had actually approved the release of 300,000 tonnes during the
three months of April, May and June at last week's meeting.


.I 3114
.C
acq
.W
BROKERAGE FIRM UPS STAKE IN ALLEGHENY <AG>.
    WASHINGTON, April 7 - The New York brokerage firm of Spear,
Leeds and Kellogg told the Securities and Exchange Commission
it had increased its preferred stock in Allegheny International
Inc to 8.6 pct, from 7 pct.
    It said it may buy additional shares, but had not decided
whether to offer its shares in response to a tender offer by
Sunter Acquisition Corp, a unit of First Boston Inc.
    The brokerage firm said it bought the Allegheny shares
March 30-April 2 for 86.50-87.25 dlrs each.


.I 3129
.C
sugar
.W
MALTA TENDERS FOR WHITE SUGAR TODAY - TRADE.
    LONDON, April 7 - Malta is tendering to buy 3,000 tonnes
white sugar today for arrival in two equal parts in May and
June, traders said.


.I 3133
.C
money-fx
.W
******FED SETS TWO-DAY SYSTEM REPURCHASES, FED SAYS.
Blah blah blah.

.I 3137
.C
acq
.W
CORROON AND BLACK <CBL> COMPLETE ACQUISITION.
    NEW YORK, April 7 - Corroon and Black Corp said it
completed the acuqisition of <Contractors Planning Group Inc>
in an exchange of shares.
    Contractors is headquartered in Garden City, N.Y., and has
branch offices in Philadelphia, Boston, and Cheshire, Conn.


.I 3139
.C
acq
.W
COLONIAL <CLBGA> TO ACQUIRE PENSACOLA BANK.
    MONTGOMERY, Ala., April 7 - Colonial BancGroup said it and
The Liberty Bank of Pensacola, Fla., signed a letter of intent
for Colonial to acquire Liberty.
    Terms of the acquisition were not dislcosed.
    Colonial said the acquisition was its first move toward
acquiring and out-of-state bank under Alabama's regional
interstate banking law.
    Liberty has total assets of 35 mln dlrs.


.I 3149
.C
earn
.W
SUPER RITE FOODS INC <SRFI> SETS QTRLY PAYOUT.
    HARRISBURG, Pa., April 7 -
    Qtrly div five cts vs five cts prior
    Pay April 27
    Record April 20

.I 3151
.C
earn
.W
MILTON ROY CO <MRC> SETS QUARTERLY.
    ST. PETERSBURG, Fla., April 7 -
    Qtly div 11 cts vs 11 cts prior
    Pay June 15
    Record May 15


.I 3160
.C
acq
.W
GOLDSIL AND GOLDEN RULE AGREE TO MERGE.
    Calgary, Alberta, April 7 - <Golden Rule Resources Ltd> and
Goldsil Resources Ltd said they had agreed to merge.
    The merged company will issue to each Golden Rule
shareholder 1-1/2 shares and one warrant. The warrant will be
for a term of two years. Payment of 3.10 dlrs and delivery of
two warrants will entitle the shareholder to one additional
share of the merged company, the companies said.
    Each Goldsil shareholder will receive one share and
one-half warrant. The warrant will be for a term of two years.
Payment of 3.10 dlrs and delivery of two warrants will entitle
the shareholder to one additional share of the merged company.


.I 3161
.C
money-fx
.W
FED SETS TWO-DAY SYSTEM REPURCHASES.
    NEW YORK, April 7 - The Federal Reserve entered the
government securities market to arrange two-day repurchase
agreements for system account, a spokeswoman for the New York
Fed said.
    Fed funds were trading at 6-1/8 pct at the time of the
direct injection of temporary reserves, dealers said.
    Most economists had expected a less aggressive injection of
reserves via customer repurchase agreements.


.I 3163
.C
earn
.W
COLONIAL BANCGROUP INC <CLBGA> 1ST QTR NET.
    MONTGOMERY, Ala., April 7 -
    Shr 25 cts vs 55 cts
    Net 1.3 mln vs 2,460,000
    NOTE: 1987 1st qtr includes loan write-offs at banking
subsidiary, The Colonial Bank of Mobile, due to loan losses, of
1.3 mln dlrs or 25 cts a share.


.I 3165
.C
earn
.W
****** Dresdner to propose 1986 dividend 10 marks vs same, one-for-18 bonus share issue.
Blah blah blah.

.I 3182
.C
trade
.W
JAPAN CUTS CHIP SUPPLY, MAY PRODUCE SHORTAGE.
    By Sam Fromartz, Reuters
    NEW YORK, April 7 - Japan is attempting to cut back
semiconductor production to forstall the 300 mln dlrs in U.S.
tariffs on Japanese electronic goods set to take effect April
17, industry analysts said.
    The move is likely to create a sharp price rise and a
possible shortage of the key computer components in the next
few weeks, the analysts said.
    "Prices have gone up for memory components, the mainstay of
the Japanese semiconductor industry," analyst Drew Peck of
Donaldson Lufkin and Jenrette said.
    But analysts said the price rises have been slight so far,
and some questioned whether Japan would be successful in
forcing Japanese companies to cut production in the long run.
    Others, however, were more optimistic, saying evidence was
already in hand that Japan has cut back prodution and halted
sales to the grey market, the third country brokers that sell
chips at below production costs.
    "We've seen the grey market begin to dry up for D-RAMS, and
it has virtually dried up for EPROMS," said Merrill Lynch
analyst Thomas Kurlack of the two key memory chips used in
computers.
    "Prices are inching up and lead times on deliveries are
stretching," Kurlack added.
    Industry analysts said Japan's Ministry of International
Trade and Industry, or MITI, had requested the cut backs in
production to meet the terms of last year's semiconductor
accord with the U.S.
    The Reagan adminsitration recently proposed tariffs on
Japanese electronic goods, alleging that Japan had failed to
live up to the accord and continued to dump the computer
components in the U.S. market.
    But some analysts said Japan's attempt to mollify the U.S.
was a double edged sword, and might be read at a subtle form of
trade retaliation for the tariffs proposed by the U.S.
    As production in Japan is cut, these analysts argue, prices
will rise in the U.S. and few American semiconductor
manufactures will be able to take up the slack since most long
ago exited the market for memory chips. U.S. computer makers
that use the chips in their machines will then be pressured.
    "The Japanese are looking for ways to reduce trade
pressures from Washington, but at the same time they're
demonstating their muscle," analyst Peck said.
    The cut backs in Japanese production are expected to
benefit U.S. chip makers.
    "I think this could be a very important factor for U.S.
semiconductor manufacturers," industry analyst Elliot Levine of
Ladenburg Thalmann Co said.
    But analyst Peck said, "it will take a few weeks to see
whether Japan has genuinely cut production."
    He said Japanese manufactures were likely to view MITI's
request unfavorably because chip capacity was still high and
production cut backs would lead to significant write-offs in
plant and equipment.



.I 3184
.C
acq
.W
INVESTORS RAISE STAKE IN PUROLATOR <PCC>.
    WASHINGTON, April 7 - Two New York management investment
firms told the Securities and Exchange Commission they had
increased their holdings in Purolator Courier Corp to 7.2 pct,
from 6.2 pct.
    Mutual Shares Corp and Mutual Qualified Income Fund Inc
said they were weighing offers to buy Purolator shares from PC
Acquisition Inc, a unit of E.F. Hutton LBO Inc, for 35 dlrs a
share, and from EAF Acquisitions Corp Inc, a unit of Emery Air
Freight Corp. at 40 dlrs
    They told the commission they had bought their new
Purolator shares March 25-27 for 34.875-35.250 dlrs each.


.I 3190
.C
money-fx;reserves;
.W
DUTCH MONEY MARKET DEBT RISES IN WEEK.
    AMSTERDAM, April 7 - Loans and advances from the Dutch
Central Bank to the commercial banks rose by 1.2 billion
guilders to 10.7 billion in the week up to and including April
6, the Bank's weekly return showed.
    Paper discounted with the Bank also rose, by 477 mln
guilders to 916 mln.
    These rises were balanced by a 1.6 billion guilders rise in
the Treasury's account at the Bank, made up mainly of
repayments on housing loans by local authorities.  The
Treasury's account stood at 8.1 billion guilders, the weekly
return showed.
    The Bank's gold and currency reserves rose by 484 mln to
56.89 billion guilders, while the value of non-gold holdings
rose by 140 mln guilders, analysts said.
    They added that the rise in the reserves was merely the
result of commercial currency transactions by the Bank.
    Call money and period tariffs were only fractionally
changed this week and were seen sustaining their stable levels
since no dramatic changes in the money market debt, currently
around 10.25 billion guilders, are expected.
    Today call money traded between 5-3/8 to 5-1/2 pct and
period tariffs all between 5-5/16 to 5-7/16 pct.


.I 3194
.C
ship;crude;
.W
KUWAIT ASKS TO USE FOREIGN FLAG TANKERS, U.S SAYS.
    WASHINGTON, April 7 - Kuwait has asked at least four
countries, including the United States, Soviet Union, Britain
and China, for temporary use of their flags or tankers to
protect Kuwaiti oil shipments in the troubled Persian Gulf,
Reagan Administration officials said.
    The officials confirmed a New York Times report that Kuwait
wants to transfer some of its oil tankers to U.S. or Soviet
registration in hopes Iran would be reluctant to launch new
"Silkworm" missiles at superpower flags.
    The United States has vowed to keep the gulf open to
international oil traffic and has warned Tehran against using
the Chinese-made missiles recently installed in Iran near the
mouth of the gulf.
    "They (the Kuwaitis) have also asked Britain, China and
possibly some other European countries to lease tankers to
carry their oil," one of the administration officials, who asked
not to be identified, told Reuters.
    The United States is considering the request to temporarily
transfer Kuwaiti ships to American registration, but such a
move could create insurance and other problems, the officials
said.
    U.S. defense officials told Reuters yesterday that Kuwait
had decided for at least the time being not to accept a U.S.
offer to use American warships to escort its tankers in the
gulf, where both Iran and Iraq have been attacking shipping.


.I 3195
.C
grain
.W
U.S. GRAIN CERTS SAVE 50-100 MLN DLRS - AMSTUTZ.
    WASHINGTON, April 7 - The use of generic commodity
certificates, or "certs," for fiscal years 1986-88 will save
the government 50 to 100 mln dlrs, Department of Agriculture
Undersecretary Daniel Amstutz said.
    Speaking at a House agriculture subcommittee hearing on the
use of the certificates, Amstutz said that the issuance of 8.5
billion dlrs of certificates during fiscal years 1986-88 could
result in government outlays of up to 400 mln dlrs.
    However, the use of certificates preclude the need for 450
to 500 mln dlrs in storage and handling costs, resulting in net
savings for the government of 50-100 mln dlrs, he said.
    Without the use of certificates, Amstutz said nearly the
entire 1985 crop which had been put under loan would have been
forfeited to the Commodity Credit Corporation, CCC.
    In addition, 260 mln bushels of grain that have been
redeemed from CCC inventory through certificate exchanges would
have remained in the goverment inventory, he said.
    When asked to comment on a recent study by the General
Accounting Office that concluded certificates result in a net
cost to the government, Amstutz said, "GAO underestimated the
benefits and overstated the costs" of the certificate program.
    Amstutz said while certificates encourage more loan
entries, they also encourage heavier loan redemptions rather
than forfeitures.
    GAO underestimated this net loan activity, Amstutz said.
    "There is no question in the mind of the Department of
Agriculture that these certificates have been very useful,"
Amstutz said.
    Immediate benefits of certificates include greater market
liquidity, improved market price competitiveness, higher farm
income, and improved debt situation and decreased carrying
costs, he said.
    Certificates are an integral part of USDA's long-range
market-oriented farm policy, he said.
    Amstutz told subcommittee Chairman Rep. Dan Glickman,
D-Kans., that USDA is in the process of preparing an official
response to the GAO study on certificates and will submit it to
the subcommittee when completed.


.I 3197
.C
interest
.W
******VOLCKER SAYS FED POLICY NOT RESPONSIBLE FOR PRIME RATE RISE.
Blah blah blah.

.I 3203
.C
trade
.W
U.S. URGES SURPLUS NATIONS TO BOOST GROWTH.
    WASHINGTON, April 7 - Leading industrial nations will be
reviewing the Paris agreement to stabilize exchange rates,
foster increased worldwide growth and reduce trade imbalances
but the U.S. thinks the accord has been successful so far, a
senior U.S. Treasury official said.
    "The Paris accord will be reviewed at this meeting. It has
been successful and continues to be succesfull," a senior U.S.
Treasury official told reporters.
    In a briefing ahead of this week's semiannual IMF and World
Bank meetings, he also said the U.S. was looking to West
Germany and Japan to bolster their economic growth.
    The official said both surplus countries, like West Germany
and Japan, and deficit countries, like the U.S., agreed to play
a role in bringing about more balanced economic growth.
    He reaffirmed the U.S. would press ahead with efforts to
reduce its budget deficit, resist protectionism and boost U.S.
competitiveness.
    The official also said that he expected trade issues, like
the dispute between the U.S. and Japan over microchips, to be
included in the discussions.
    The official made no direct comment on the content or
schedule of forthcoming Group of Five and Group of Seven
discussions. He said that industrial countries are concerned
that the large external imbalances remain a threat to the
international monetary system.
    He added that the meetings will also provide an opportunity
to discuss economic policy coordination efforts.
    The official said indicators would be used to measure
policy objectives of industrial countries and their economic
projections.
    They would also be used to assess progress of policy goals.
    Asked whether the U.S. was proposing a new initiative
regarding the indicators, the official said the issue would be
reported to the Venice Summit in June. Monetary sources said
the U.S. proposal envisages using the indicators to make policy
coordination agreements, like the Paris Accord, more binding.


.I 3246
.C
acq
.W
ACME PRECISION <ACL> SETS HOLDER VOTE ON BUYOUT.
    DETROIT, April 7 - Acme Precision Products Inc said it set
its annual meeting for May 14 for shareholders to vote on the
proposed management-led leveraged buyout of the company.
    The record date for the meeting will be April 16, with
proxy materials to be sent to shareholders on or before April
20.
    The buyout proposal, which was previously announced, will
be structured as a one for 100,000 reverse stock split. It must
be approved by a majority of shareholders. Acme Precision has
1,008,857 shares outstanding.


.I 3253
.C
interest
.W
VOLCKER SAYS FED POLICY NOT LINKED TO RATE RISE.
    WASHINGTON, April 7 - Federal Reserve Board Chairman Paul
Volcker said that he did not believe there was a connection
between the Fed's policies and the recent rise in the prime
interest rate by most major U.S. banks.
    Asked by reporters following testimony before the Senate
Banking Committee whether the Fed had anything to do with the
rise to 7-3/4 pct in the prime, he replied, "not that I was able
to detect."


.I 3265
.C
earn
.W
WEIS MARKETS <WMK> IN THREE FOR TWO STOCK SPLIT.
    SUNBURY, Pa., April 7 - Weis Markets Inc said its board
declared a three-for-two stock split for holders of record May
1, 1987, with a distribution date of May 22, 1987.
    The company also said a regular quarterly dividend of 16
cts per share on the pre-split shares will be paid May 22 to
shareholders of record May 1.


.I 3268
.C
earn
.W
MCCORMICK CAPITAL <MKOR> 1986 YEAR NET.
    CHICAGO, April 7 -
    Shr primary 24 cts vs 25 cts
    Shr diluted 21 cts vs 25 cts
    Net 530,583 vs 493,423
    Revs 10.2 mln vs 9,834,578


.I 3276
.C
interest
.W
U.S. SAYS NO PACT ON RELIEF FOR POOREST STATES.
    WASHINGTON, April 7 - There is no consensus so far among
industrial countries on an agreement providing debt relief for
the world's poorest nations, a senior U.S. Treasury official
said.
    The official said, "There has not been a consensus reached
yet," when asked about reports the Paris club of western
creditors had agreed to long-term stretch outs of African debt
at concessional interest rates.
    The official, briefing reporters on this week's semiannual
IMF meetings, said the issue would be discussed this week and
the U.S. had an open mind on the proposal but it did object to
concessional interest rate relief.


.I 3280
.C
copper;nickel;
.W
U.S. MINT SEEKING OFFERS ON COPPER, NICKEL.
    WASHINGTON, April 7 - The U.S. Mint said it is seeking
offers on 3,701,000 lbs of electrolytic copper and 629,000 lbs
of electrolytic cut nickel cathodes or briquettes that it
intends to purchase.
    It said both metals are for delivery in the week of May 11
to Olin Corp, East Alton, Ill.
    Offers for the copper are due by 1100 hrs EDT, April 21,
while offers on the nickel are due at 1100 hrs EDT on April 14.
    The Mint said that firms, in submitting their offers,
select to receive payment by standard check or be wire
transfer. Awards are determined by whichever of the two methods
is most cost advantageous, based on the cost of money at that
time.
    The minimum acceptance periods for each solicitation is
three calendar days for the copper and 10 calendar days for the
nickel, the Mint said.


.I 3281
.C
acq
.W
FAMILY HEALTH SYSTEMS <FHSY> TO MAKE PURCHASE.
    CHARLESTON, W. Va., April 7 - Family Health System Inc said
The Federal Bankruptcy Court in Fort Worth, Texas has approved
its offer to purchase <Sheppard Dental Centers Inc's> assets
from a Chapter 7 bankruptcy proceeding for about 300,000 dlrs.
    FHS administers and markets multiple office dental
practices in the Dallas metropolitan area as well as dental
offices in the Dallas Metroplex.
    The company said it plans to open 12 locations in Dallas by
the end of 1987.


.I 3283
.C
earn
.W
OLD FASHION FOODS INC <OFFI> 3RD QTR FEB 28 NET.
    ATLANTA, April 7 - 
    Shr 10 cts vs 10 cts
    Net 131,000 vs 135,000
    Revs 4,222,000 vs 3,656,000
    Avg shrs 1,278,529 vs 1,356,672
    Nine mths
    Shr 31 cts vs 31 cts
    Net 406,000 vs 426,000
    Revs 12.3 mln vs 11.0 mln
    Avg shrs 1,330,511 vs 1,361,421


.I 3293
.C
earn
.W
CONSOLIDATED-BATHURST SEES BETTER MARKET.
    MONTREAL, April 7 - (Consolidated-Bathurst Inc) said it
expects improvement in the pulp and paper sector shown in the
second half of 1986 to continue this year. The continued
improvement would be due to good market demand, better product
prices and high operating capacity, the company said in its
annual report.
    Consolidated-Bathurst, which reported operating profit of
104 mln dlrs last year on sales of 2.02 billion dlrs, said its
joint-venture acquisition of a market pulp mill at Castlegar,
B.C. last year broadens its product range and will contribute
to equity earnings.
    Last year's results were up from 1985 operating profit of
80 mln dlrs and sales of 1.73 billion dlrs.
    The company said it views its near-term prospects with
improved optimism.
    It said results from its Bridgewater newsprint mill in the
U.K. should improve greatly this year due to stronger capacity
and production and more favorable market conditions.
    It said it anticipates a return to profitability in 1987
for its Diamond-Bathurst Inc (DBH) subsidiary, which lost 6.2
mln U.S. dlrs and underwent a reorganization last year, and
expects higher sales and earnings for its other North American
packaging divisions.
    Consolidated-Bathurst said the outlook for its Europa
Carton unit is mixed. It said the effect of trade disputes
between the United States and the European Economic Community
on the West German economy and the higher value of the mark may
lead to increased costs which could not be offset by price
increases.


.I 3296
.C
grain
.W
MORE U.S. GRAIN CERTIFICATES NEEDED, STUDY SAYS.
    WASHINGTON, April 7 - More generic grain certificates
should be released onto the market in order for the U.S.
certificate program to have its full effect on commodities,
according to a study by Sparks Commodities Inc.
    The Agriculture Department should make grain deficiency
payments and paid land diversion payments in a two-third
certificate, one-third cash ratio through fiscal year 1989, 
Carroll Brunthaver, president of Sparks Commodities, told a
House agriculture subcommittee hearing on certificates.
    Thereafter, government payments should be issued in roughly
a 50-50 split between cash and certificates, Brunthaver said.
    The Sparks study on certificates examined two possible
scenarios through the 1990 growing season -- a "zero
certificate case," where no certificate program was assumed,
and an alternative case labeled "adequate certificate case" in
which sufficient certificates would be released so that grain
prices would not be artificially supported by market shortages
due to acreage reduction programs or government holdings.
    The study showed that total grain use under the adequate
certificate scenario would exceed the zero certificate scenario
by 11.2 pct.
    Usage would be markedly more in 1989 and 1990, when grain
usage under a certificate program was estimated to exceed the
zero certificate case by 15 to 19 pct.
    For the five-year period examined, government expenditures
under the adequate certificate case were 7.0 billion dlrs, or
7.5 pct less than under the zero certificate case.
    The Sparks study said that 5.1 billion dlrs, or 70 pct of
those savings resulted from smaller government storage costs.
    The study also estimated that government grain stocks under
the adequate certificate case would be 4.7 billion bushels
below the zero certificate case at the end of the period
examined.
    The Sparks study said that while certificates permit market
prices to fall below loan levels, these lower prices increase
commodity usage and reduce the net costs of certificates versus
cash.


.I 3297
.C
earn
.W
CUMMINS ENGINE <CUM> SEES IMPROVED EARNINGS.
    COLUMBUS, Ind., April 7 - Cummins Engine Co said it told
shareholders higher engine orders to the North American
heavy-duty truck market will result in improved earnings in the
first quarter.
    Cummins said the company should make progress this year and
next toward its goal of five pct profitability.
    Cummins recorded net income of 3,743,000 dlrs, or 38 cts
per share, on sales of 516.9 mln dlrs.
    It said it expects 1987 North American heavy-duty truck
production to total 135,000 units, an 8.5 pct increase from
1986.
    Cummins said it expects capital expenditures to total about
155 mln dlrs, down from 274 mln dlrs the year before.


.I 3298
.C
acq
.W
NORTH-WEST TELECOM <NOWT> MAKES ACQUISITION.
    TOMAH, WIS., April 7 - North-West Telecommunications Inc
said it acquired the assets and customer base of Com-Tel
Systems Inc, a telephone interconnect firm that operates in La
Crosse and Stevens Point, Wis. and Rochester, Minn.
    It said the purchase only includes the businesses in La
Crosse and Rochester.
    Terms were not disclosed.


.I 3299
.C
earn
.W
MILTON ROY CO <MRC> SETS REGULAR DIVIDEND.
    ST. PETERSBURG, Fla., April 7 - 
    Qtly div 11 cts vs 11 cts prior
    Pay June 15
    Record May 15


.I 3307
.C
earn
.W
OHIO MATTRESS CO <OMT> 1ST QTR FEB 28 NET.
    CHICAGO, April 7 - 
    Shr 15 cts vs 15 cts
    Net 2,407,000 vs 2,393,000
    Revs 117.2 mln vs 67.1 mln
    Note: Aggregate judgments in antitrust and other suits of
77 mln dlrs not included in year-ago or 1987 1st qtr results.
Company said any portion of this amount, including related
interest or attorneys' fees, would be proportionately reflected
as a reduction in its minority interest of Sealy recorded on
its consolidated balance sheet upon final settlement of
litigation.
    Note: Consolidated balance sheet as of end of 1st qtr
reflects after-tax impact of 50 mln dlr settlement won by Sealy
licensee in Michigan.
    1987 results include all operations of all acquired
Sealy-brand licensees and 82 pct of Sealy. Remaining 18 pct of
Sealy is recorded as minority interest.
    Proceeds of 170 mln dlrs from sale of stock and debt were
used to reduce balance of revolving credit agreement to 80 mln
dlrs. Accordingly, 250 mln dlr obligation to banks under credit
agreement was recorded as a long-term liability as of end of
1st qtr.
    Note: In April, company intends to acquire Michigan Sealy
licensee and fund transaction with 25 mln dlrs in cash and
borrow balance required from banks.


.I 3323
.C
grain
.W
USSR CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, April 7 - Gradual warming continued in most
regions of Western Soviet Union in the week ended April 4, the
Joint Agricultural Weather Facility of the U.S Agriculture and
Commerce Departments said.
    In its International Weather and Crop Summary, the agency
said most of the region's precipitation fell as rain.
    The southern snow cover boundary continued to slowly
retreat northward and eastward, it said.
    Moderate to deep snow cover the northern half of the
Ukraine, northern North Caucasus, and the lower Volga, about
one month later than usual, it said.
    The agency said average weekly temperatures were below
normal in the southeast, near normal in the southwest and
northeast, and above normal in the northwest.
    Winter grains remained dormant over the region, but warm
weather promoted greening in crop areas adjacent to the Black
Sea coast, it said.


.I 3337
.C
cotton
.W
U.S. WEATHER/COTTON SUMMARY -- USDA/NOAA.
    WASHINGTON, April 7 - Cotton planting continued progressing
in the week ended April 5, but cold, wet weather in the South
hampered seedbed preparation, the Joint Agricultural Weather
Facility of the U.S. Agriculture and Commerce Departments said.
    In a summary of its Weather and Crops Bulletin, the agency
said planting increased in California as soil temperatures
improved.
    Texas planted 10 pct compared with an average of eight pct.
Arizona and Georgia planted 35 pct and two pct, respectively,
it said.
    Oklahoma farmers prepared 10 pct of their cotton seedbeds,
15 points below average, the agency said.


.I 3343
.C
ship;grain;
.W
GRAIN SHIPS WAITING AT NEW ORLEANS.
    New Orleans, April 7 - Nine grain ships were loading and 16
were waiting to load at New Orleans elevators, trade sources
said.
 ELEVATOR                     LOADING  WAITING
 Continental Grain, Westwego     1      5
 Mississippi River, Myrtle Grove 1      0
 ADM Growmark                    1      2
 Bunge Grain, Destrehan          1      0
    ELEVATOR                LOADING  WAITING
 ST CHARLES DESTREHAN         1      1
 RESERVE ELEVATOR CORP        1      0
 PEAVEY CO, ST ELMO           1      1
 CARGILL GRAIN, TERRE HAUTE   1      4
 CARGILL GRAIN, PORT ALLEN    0      0
 ZEN-NOH                      1      3


.I 3359
.C
acq
.W
******GENERAL PARTNERS IS TERMINATING OFFER FOR GENCORP INC.
Blah blah blah.

.I 3371
.C
earn
.W
******BURLINGTON NORTHERN INC 1ST QTR SHR PROFIT 93 CTS VS LOSS 3.55 DLRS.
Blah blah blah.

.I 3372
.C
grain
.W
IOWA GRAIN ELEVATOR EXPLODES, BURNS.
    BANCROFT, Iowa, April 7 - An explosion and fire today
damaged a grain elevator in Bancroft, Iowa, destroying
thousands of bushels of grain, authorities said.
    The pre-dawn explosion ripped the wooden elevator open, and
a fire that followed continued burning at late morning but had
been contained, according to a dispatcher at the Algona Police
Department.
    No injuries were reported at the Lone Rock Coop facility.
    The dispatcher said the elevator was filled with corn, and
a nearby drying building holding soybeans was on fire.
    The explosion was the second in four days in Iowa following
the destruction of an Archer Daniels Midland elevator in
Burlington last Friday.


.I 3376
.C
earn
.W
ARTISTIC GREETINGS <ARTG> SEES RECOVERY IN NET.
    ELMIRA, N.Y., April 7 - Artistic Greetings Inc said it
expects a rebound in profits and an increase in sales in 1987
as costs connected with computerization, staffing, traning and
catalog sales start to taper off.
    Today it reported 1986 earnings of 294,650 dlrs, down from
371,064 dlrs a year before, on revenues of 8,157,864 dlrs, up
from 7,054,709 dlrs.


.I 3377
.C
acq
.W
PARTNERSHIP BUYS 5.1 PCT ORANGE-CO <OJ> STAKE.
    WASHINGTON, April 7 - Parsow Partnership Ltd, an Elkhorn,
Neb., investment partnership, said it bought a 5.1 pct stake in
Orange-Co Inc common stock as an investment.
    In a filing with the Securities and Exchange Commission,
Parsow said it had bought all its 220,000 Orange-Co shares in
the open market with funds from its working capital.
    The partnership, whose sole general partner is Elkhorn
investor Alan Parsow, said it "has no present intention of
effecting any change in the control of Orange-Co Inc."


.I 3378
.C
crude
.W
COOPERATIVE ENERGY TESTS OIL AT TWO WELLS.
    CALGARY, Alberta, April 7 - <Cooperative Energy Development
Corp> said two exploratory oil wells in the Zama area of
Alberta tested 1,020 and 950 barrels a day, and will increase
the company's daily oil production by 30 pct.
    The company did not immediately elaborate on total
production figures.
    The wells, flowing oil from the Keg River formation, will
be constrained to combined production of about 450 barrels a
day to optimize reserve recovery, the company said.
    Permanent production facilities are being installed and the
wells will produce to pipeline by mid-April.


.I 3385
.C
earn
.W
CUMMINS ENGINE CO INC <CUM> SETS PAYOUT.
    COLUMBUS, Ind., April 7 -
    Qtly div 55 cts vs 55 cts prior
    Pay June 15
    Record June 1


.I 3400
.C
earn
.W
CENTRAL BANCSHARES <CBSS> 1ST QTR NET.
    BIRMINGHAM, Ala., April 7 -
    Shr 52 cts vs 45 cts
    Net 10.9 mln vs 9,498,000
    Assets 3.60 billion vs 3.25 billion
    Deposits 2.45 billion vs 2.23 billion
    Loans 2.16 billion vs 1.67 billion
    NOTE: full name of company is Central Bancshares of the
South Inc.


.I 3401
.C
coffee
.W
U.S. CERTIFIED COFFEE STOCKS DOWN IN LATEST WEEK.
    NEW YORK, April 7 - The amount of coffee stored in New York
and New Orleans warehouses and certified for delivery against
the New York Coffee "C" futures totalled 585,555 bags as of
April 3, compared with 585,794 bags the previous week, a net
decrease of 239 bags, the New York Coffee, Sugar and Cocoa
Exchange said.
    The total comprised 392,845 bags in New York, an increase
of 261 bags, and 192,710 bags in New Orleans, a drop of 500
bags.
    The exchange said there were nil bags pending
classification. There were 56,578 bags pending certification,
including 32,553 in New York and 24,025 in New Orleans, the
exchange said.


.I 3406
.C
acq
.W
TEXTRON <TXT> PLANS SALE OF AVCO DIVISION.
    PROVIDENCE, R.I., April 7 - Textron Inc said it plans to
sell its Avco Specialty Materials Division as part of its debt
reduction and restructuring.
    The company said it will use proceeds from the sale to
reduce the debt incurred by its acquisition of Ex-Cell-O Corp
last year.
    Textron said Morgan Stanley and Co will represent it in the
sale.


.I 3410
.C
earn
.W
GREEN TREE ACCEPTANCE INC <GNT> 1ST QTR NET.
    ST. PAUL, April 7 -
    Shr 50 cts vs 40 cts
    Net 9,421,000 vs 9,312,000
    Rev 37.7 mln vs 36.3 mln
    Avg shrs 17,049,920 vs 21,173,570
    NOTE: Per-share results adjusted for two-for-one common
stock split in June 1986


.I 3417
.C
sugar;livestock;
.W
U.S. IMMIGRATION RULES SPARK CONGRESS OBJECTIONS.
    WASHINGTON, April 7 - New immigration rules relating to
alien farm workers and reportedly being drafted by the U.S.
Agriculture Department are meeting with objections in Congress,
sources on Capitol Hill said.
    USDA is drafting regulations, required by a 1986 law, that
would offer amnesty to illegal aliens if they worked in the
cultivation of fruits, vegetables and other perishable
commodities.
    The department is considering including in its definition
of perishable commodities such farm products as tobacco, hops,
Spanish reeds and Christmas trees, while excluding sugar cane,
the New York Times reported yesterday.
    Rep. Howard Berman, D-Calif., would like to see the
definition extended to include sugar cane, cultivation of which
is "a breeding ground for one of the scandals of the nation,"
Gene Smith, a spokesman for Berman, said.
    Livestock, dairy and poultry producers have been lobbying
USDA hard to have their products covered by the amnesty
provision, farm industry sources said.
    Chuck Fields of the American Farm Bureau Federation said
livestock producers were "desperate" because they fear they will
be unable to retain the many illegal aliens who have joined
that industry.
    A House staff member involved in drafting the landmark 1986
immigration law who asked not to be identified said Congress
did not mean to extend special amnesty provisions to workers
who helped cultivate tobacco, and that inclusion of hops and
Spanish reeds was "marginal."
    In addition, lawmakers made it clear during consideration
of the bill that lumber workers were not to be covered by the
the amnesty provisions, making the inclusion of Christmas trees
"a tough call," this source said.
    USDA officials declined to comment on the draft regulation
except to say it was subject to change before it will be
released, probably some time later this month.
    While lawmakers may object to the USDA rule under
consideration relating to perishable commodities, Congress is
not likely to reopen debate on the controversial immigration
question, congressional sources said.
    The amnesty provision specially designed for farm workers
was crucial to passage of the overall immigration bill.
    Congressional staff members estimate the special farm
worker amnesty provision would apply to between 250,000 to
350,000 aliens. The law would allow eligible farm workers who
worked for 90 days during the year ending May 1, 1986, to apply
for temporary, then permanent, resident status.


.I 3423
.C
sugar
.W
CUBA CRUDE SUGAR HARVEST FAR BEHIND SCHEDULE.
    HAVANA, April 7 - Cuban president Fidel Castro told a
Congress of the Union of Young Communists here that the
production of crude sugar during the harvest still in progress
is 800,000 tonnes behind schedule.
    In a speech Sunday, published in today's official paper
GRANMA, Castro said unseasonable rains since January seriously
interrupted harvesting and milling operations especially in the
central and western parts of the island.
    The Cuban leader said the mechanical cane harvesters
scheduled to cut over 60 pct of the cane this year were
particularly "vulnerable," as muddy fields prevent operations.
    Neither Castro nor the Cuban press have given out figures
to estimate tonnes of crude production during the present
harvest or the goals for the sugar campaign.
    However, a cuban sugar official told Reuters that the
country will be lucky if crude output reaches last year's 7.2
mln tonnes. Output of crude for the previous 1984-85 harvest
was 8.2 mln tonnes.
    The harvest was scheduled to end April 30 but due to the
present shortfalls it will be extended into May and June, the
official said.


.I 3452
.C
acq
.W
******AVON SAYS IT TO BUY GIORGIO INC, A FRAGRANCE COMPANY, FOR 185 MLN DLRS.
Blah blah blah.

.I 3459
.C
copper
.W
MAGMA LOWERS COPPER PRICE 0.50 CT TO 65.50 CTS.
    NEW YORK, April 7 - Magma Copper Co, a subsidiary of
Newmont Mining Corp, said it is lowering its copper cathode
price by 0.50 cent to 65.50 cents a lb, effective immediately.


.I 3466
.C
grain;corn;livestock;
.W
IRAQ CCC CREDIT GUARANTEES SWITCHED - USDA.
    WASHINGTON, April 7 - The Commodity Credit Corporation
(CCC) has transferred 21.0 mln dlrs in credit guarantees
previously earmarked for sales of U.S. corn and 5.0 mln dlrs
for sales of oilseeds to increase available coverage on sales
of U.S. poultry meat to Iraq, the U.S. Agriculture Department
said.
    The department said the action was taken at the request of
Iraq's State Trade Organization for Grains and Foodstuffs.
    The guarantee line for sales of corn has been reduced from
78.0 mln dlrs to 57.0 mln and the line for oilseeds from 5.0
mln dlrs to zero.
    The guarantee line for sales of frozen poultry has been
increased from 30.0 mln dlrs to 56.0 mln dlrs, USDA said.


.I 3468
.C
acq
.W
AVON PRODUCTS <AVP> TO BUY GIORGIO FOR 185 MLN.
    NEW YORK, April 7 - Avon Products Inc said it reached an
agreement in principle to purchase <Giorgio Inc>, a fragrance
company, for 185 mln dlrs in cash.
    Giorgio's annual revnues are more than 100 mln dlrs, Avon
said. The acquisition has been approved by Avon's board, with
the closing set for May 7.
    The transaction would have no impact on Avon's current
dividend rate, it said.
    Giorgio's boutique in Beverly Hills, Calif., will be sold
back to Fred Hayman, one of the shareholders, who will continue
to operate it independently, Avon said.
    Avon said it identified Giorgio more than a year ago as a
preferred acquisition candidate. It said it is launching a
prestige fragrance developed in conjunction with Catherine
Deneuve this spring.
    Giorgio will be operated as a separate subsidiary, Avon
said, and would not compete with Avon's direct selling beauty
products business.


.I 3474
.C
ship;wheat;grain;
.W
HONDURAS SEEKING PL-480 VESSELS FOR BULK WHEAT.
    WASHINGTON, April 7 - Honduras will tender April 13 under
Public Law 480 for U.S. and non-U.S. flag vessels to deliver
approximately 52,500 tonnes of various wheats in bulk, an agent
for the country said.
    The agent said deliveries of northern spring/dns wheat will
include laydays of July 1-10 for 7,500-9,500 tonnes, August
1-10 for 8,000-10,000 tonnes, and September 15-25 for
12,500-14,500 tonnes.
    Deliveries of hard red winter wheat will have laydays of
June 20-30 for 5,000-7,000 tonnes, July 15-25 for 6,500-8,500
tonnes, and September 15-25 for 7,000-9,000 tonnes.
    Offers are due by 1200 hrs EDT, April 13, and will remain
valid until the close of business April 14, the agent said.


.I 3482
.C
copper
.W
MAGMA LOWERS COPPER PRICE 0.50 CT TO 65.50 CTS.
    NEW YORK, April 7 - Magma Copper Co, a subsidiary of
Newmont Mining Corp, said it is lowering its copper cathode
price by 0.50 cent to 65.50 cents a lb, effective immediately.


.I 3487
.C
acq
.W
GENCORP <GY> SAYS BUYBACK BETTER THAN TAKEOVER.
    AKRON, Ohio, April 7 - GenCorp Inc said the decision by
General Partners, comprised of AFG Industries and Wagner and
Brown, to end its hostile offer for the company supports its
belief that the buy back offer it announced yesterday was a
"financially superior alternative."
    GenCorp said it would annouce details of its plans to buy
back 54 pct of its stock for 1.6 billion dlrs, or 130 dlrs a
share, later this week. GenCorp's buy back was made to fend off
the hostile 2.3 billion dlr, 100-dlr-a-share, tender offer by
AFG and Wagner and Brown.
    Earlier today AFG and Wagner and Brown said that without
the benefit of additional information available to GenCorp's
management, it cannot compete economically with GenCorp's
proposal.
    The group said it is ending its tender offer for GenCorp
and promptly return to tendering shareholders all shares
tendered pursuant to its offer.
    The group owns 9.8 pct, or 2,180,608 shares, of GenCorp's
outstanding shares.


.I 3489
.C
acq
.W
BERRY PETROLEUM, NORRIS OIL <NOIL> TO MERGE.
    TAFT, Calif., Apri l7 - Berry Petroleum Co said its board
and the Norris Oil Co board approved a merger agreement that
calls for Norris to become a wholly-owned Berry subsidiary.
    Berry, a privately-owned company which already owns 80.6
pct of Norris Oil's stock, said the agreement calls for Norris'
public shareholders to receive 0.0333 Berry common shares for
each Norris share held.


.I 3492
.C
veg-oil;wheat;grain;
.W
CCC CREDITS FOR BANGLADESH AMENDED - USDA.
    WASHINGTON, April 7 - The Commodity Credit Corporation
(CCC) has reallocated 5.0 mln dlrs in credit guarantees
previously earmarked for sales of U.S. wheat to provide
coverage for sales of U.S. vegetable oil to Bangladesh, the
U.S. Agriculture Department said.
    USDA said the action was taken at the request of the
Bangladesh government and reduces the guarantee line authorized
for wheat sales from 25.0 mln dlrs to 20.0 and creates a new
line of 5.0 mln dlrs for vegetable oils.
    To be eligible for coverage under the CCC's Intermediate
Export Credit Program, credit terms must be in excess of three
years, but not more than seven years.
    All sales covered by the credit guarantees must be
registered and shipped by September 30, 1987, USDA said.


.I 3495
.C
oilseed
.W
CCC SEED CREDIT GURANTEES FOR ALGERIA - USDA.
    WASHINGTON, April 7 - The Commodity Credit Corporation
(CCC) has authorized 2.0 mln dlrs in credit guarantees to cover
sales of seeds for planting to Algeria, the U.S. Agriculture
Department said.
    The department said the additional guarantees increase the
cumulative fiscal year 1987 program for sales of U.S.
agricultural products to Algeria to 466.0 mln dlrs.
    To be eligible under the new seed credit guarantees, all
sales must be registered by September 30, 1987, and shipped by
December 31, 1987, USDA said.


.I 3498
.C
grain;rice;
.W
USDA ANNOUNCES WORLD MARKET RICE PRICES.
    WASHINGTON, April 7 - The U.S. Agriculture Department
announced the following prevailing world market prices of rice
on a loan-rate basis, with previous prices --
    -- Long grain whole kernels 5.87 cts per lb vs 5.70
    -- Medium grain whole kernels 5.28 cts per lb vs 5.12
    -- Short grain whole kernels  5.22 cts per lb vs 5.06
    -- Broken kernels 2.94 cts per lb vs 2.85
    The repayment rate for 1986-crop warehouse or farm-stored
rice loans are the higher of the world price or 50 pct of the
loan rate of 7.20 dlrs per cwt.
    The prices will remain in effect for a week, but new prices
could be announced earlier if warranted, USDA said.


.I 3499
.C
earn
.W
TOTAL SYSTEM SERVICES INC <TSYS> 1ST QTR NET.
    COLUMBUS, Ga., April 7 -
    Shr nine cts vs seven cts
    Net 1,356,000 vs 1,041,000
    Revs 9.7 mln vs 8.4 mln


.I 3500
.C
earn
.W
HUBCO INC <HCO> 1ST QTR NET.
    UNION CITY, N.J., April 7 -
    Shr 38 cts vs 30 cts
    Net 1,356,754 vs 1,048,340
    Assets 448.5 mln vs 407.4 mln
   


.I 3507
.C
earn
.W
<WILDERNESS EXPERIENCE INC> 4TH QTR LOSS.
    CHATSWORTH, Calif., April 7 - Period ended Jan 31
    Shr loss three cts vs loss two cts
    Net loss 183,500 vs loss 163,800
    Sales 608,800 vs 1,156,100
    Year
    Shr loss 16 cts vs loss 21 cts
    Net loss 1,128,600 vs loss 1,081,600
    Sales 3,811,200 vs 6,968,700
   


.I 3508
.C
earn
.W
TOTAL SYSTEMS SERVICES <TSYS> 1ST QTR NET.
    COLUMBUS, Ga., April 7 -
    Shr nine cts vs seven cts
    Net 1,356,000 vs 1,041,000
    Revs 9,729,000 vs 8,367,000


.I 3520
.C
ship
.W
BERMUDA STAR <BSL> LEASES VESSEL.
    TEANECK, N.J., APril 7 - Bermuda Star Line Inc said it has
leased a 23,500 ton passenger vessel from Orley Shipping Co
Inc, of Liberia for a term with options extending for 15 years.
    The vessel, SS Liberte, will be renamed the Canadian Star
and will be used for cruises to Montreal from New York,
beginning in June.
    Orley SHipping is partially owned by Common Brothers PLC, a
U.K. maritime firm which owns 60 pct of Bermuda Star's shares
and arranged debt financing for the ship's purchase.
    Orley acquired the vessel from Banstead Shipping Ltd. Terms
were not disclosed.


.I 3522
.C
earn
.W
PREMDOR PLANS TWO-FOR-ONE STOCK SPLIT.
    TORONTO, April 7 - <Premdor Inc> said it planned a
two-for-one common stock split, subject to shareholder approval
at the May 4 annual meeting.
    It said the split, if approved, would take effect on May
20.
    Premdor manufactures and sells wood doors.


.I 3523
.C
earn
.W
TELETRAK ADVANCED TECHNOLOGY 4TH QTR LOSS.
    NEW YORK, April 7 -
    Shr loss two cts vs loss two cts
    Net loss 183,597 vs loss 136,990
    Rev 36,600 vs 61,763
    Avg shares 12,355,000 vs 9,205,000
    Year
    Shr loss five cts vs loss five cts
    Net loss 571,336 vs loss 416,595
    Rev 103,327 vs 61,763
    Avg shares 12,355,000 vs 8,705,000
    NOTE: Company's full name is <Teletrak Advanced Technology
Systems Inc and it is a unit of Helm Resources <H>. 1985 net
loss includes loss from discontinued operations of 278,156
dlrs.


.I 3525
.C
acq
.W
CANNON <CAN> SELLS STAKE IN HBO/CANNON VENTURE.
    LOS ANGELES, April 7 - Cannon Group Inc said it agreed in
principle to sell its 50 pct interest in the HBO/Cannon Video
joint venture to the Home Box Office unit of Time Inc <TL>.
    The company said it is making the sale because in the near
future all of its video products will be licensed in the United
States and Canada to either the Warner Brothers unit of Warner
Communications Inc <WCI>, or to Media Home Entertainment.


.I 3527
.C
earn
.W
HOUSTON OIL TRUST <HO> HALTS ROYALTIES.
    HOUSTON, April 7 - Houston Oil Trust said there will be no
royalty funds available for distribution to unit holders in
April.
    It also said that based on recent independent petroleum
engineers' estimates of Oct 31, 1986, there may be no amounts
avialable for distribution the rest of the year.


.I 3528
.C
earn
.W
UPPER PENINSULA POWER CO <UPEN> SETS PAYOUT.
    HOUGHTON, Mich., April 7 -
    Qtly dividend 52-1/2 cts vs 52-1/2 cts
    Pay May one
    record April 17


.I 3530
.C
earn
.W
ITT CORP <ITT> DECLARES DIVIDEND.
    NEW YORK, April 7 - 
    Qtly div 25 cts vs 25 cts prior
    Pay July 1
    Record May 7


.I 3532
.C
earn
.W
PACIFIC LIGHTING CORP <PLT> QTLY DIVIDEND.
    LOS ANGELES, April 7 -
    Shr 87 cts vs 87 cts prior qtr
    Pay May 15
    Record April 20


.I 3533
.C
earn
.W
STALEY CONTINENTAL <STA> REGULAR DIVIDEND SET.
    ROLLING MEADOWS, ILL., April 7 -
    Qtly div 20 cts vs 20 cts previously
    Pay June Eight
    Record May 22


.I 3534
.C
earn
.W
ITT CORP <ITT> REGULAR QTRLY DIVIDEND.
    NEW YORK, April 7 -
    Qtly div 25 cts vs 25 cts prior
    Payable July one
    Record May 7


.I 3541
.C
heat
.W
SUN <SUN> RAISES HEATING OIL BARGE PRICE.
    NEW YORK, April 7 - Sun Co's Sun Refining and Marketing Co
subsidiary said it raised the price it charges contract barge
customers for heating oil in New York harbor by 0.50 cent a
gallon, effective today.
    The increase brings the contract barge price to 50.50 cts a
gallon, Sun said.


.I 3546
.C
acq
.W
SPORTSCENE ACQUIRES CHRISTOPHE VAN HOUTTE CHAIN.
    MONTREAL, April 7 - (Sportscene Restaurants Inc) said it
acquired (Cafe Christophe Van Houtte Inc), a cafe chain with
ten franchises and one corporate restaurant, for an unspecified
amount of cash and Sportscene shares.


.I 3549
.C
instal-debt
.W
******U.S. CONSUMER CREDIT ROSE 1.77 BILLION DLRS IN FEB VS REVISED 789 MLN JAN GAIN.
Blah blah blah.

.I 3552
.C
earn
.W
RONSON CORP <RONC> 4TH QTR DEC 31.
    SOMERSET, N.J., April 7 -
    Shr loss 21 cts vs loss seven cts
    Net loss 971,000 vs loss 318,000
    Revs 8.3 mln vs 9.2 mln
    Year
    Shr loss 43 cts vs profit 14 cts
    Net loss 1.9 mln vs profit 606,000
    Revs 32.5 mln vs 31.9 mln
    NOTE:1986 loss includes reserves of 329,000, 1985 includes
tax benefit of 352,000, 96,000, and 570,000 dlrs.1986 4th qtr
includes 850,000 dlrs writedowns, 499,000 dlr gain from sale.
    1985 net includes extraordinary items of 108,000 and gain
on sale of 1.6 mln dlrs , tax carryforward gain of 246,000
dlrs.
   


.I 3555
.C
gold;silver;lead;copper;zinc;
.W
WESTMIN TO RAISE MYRA FALLS CAPACITY BY 33 PCT.
    CALGARY, Alberta, April 7 - Westmin Resources Ltd said it
plans to increase capacity at its Myra Falls, British Columbia,
base and precious metal mine and mill complex by 33 pct to
4,400 short tons of ore a day, subject to regulatory approvals.
    The company said the expansion will cost about 24 mln dlrs
and could be in operation by 1988.
    Economies of scale from the expansion should pay back net
expansion cost in less than one year, Westmin said.
    The Myra Falls complex processed 3,257 tons of ore a day
during 1986. Myra Falls 1986 production was 44,000 ounces of
gold, 966,266 ounces of silver, 45.5 mln lbs of copper, 96.2
mln lbs of zinc and 777,000 lbs of lead, a company spokesman
said.
    Myra Falls 1986 production was 44,000 ounces of gold,
966,266 ounces of silver, 45.5 mln pounds of copper, 96.2 mln
pounds of zinc and 777,000 pounds of lead, a company spokesman
said.


.I 3556
.C
money-supply
.W
TREASURY BALANCES AT FED ROSE ON APRIL 6.
    WASHINGTON, April 7 - Treasury balances at the Federal
Reserve rose on April 6 to 4.262 billion dlrs from 3.876
billion dlrs on the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 4.950
billion dlrs from 5.004 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 9.212 billion
dlrs on April 6 compared with 8.880 billion dlrs on April 3.


.I 3565
.C
acq
.W
MANUFACTURERS <MHC> IN BUILDING FORECLOSURE.
    NEW YORK, April 7 - Manufacturers Hanover Corp said its OFP
Inc unit acquired a Dallas office building through foreclosure.
    The company said it foreclosed on the Allied Bank Tower, a
1.2 mln-square-feet office building at One Fountain Place,
Dallas.


.I 3569
.C
earn
.W
HI-SHEAR INDUSTRIES INC <HSI> SETS PAYOUT.
    NORTH HILLS, N.Y., April 7 -
    Qtrly div 11 cts vs 11 cts prior
    Pay April 28
    Record April 20


.I 3570
.C
acq
.W
COCA-COLA BOTTLING <COKE> TERMINATES TALKS.
    CHARLOTTE, N.C., APril 7 - Coca-Cola Bottling Co
Consolidated said it terminated negotiations with the proposed
purchaser of its wholly owned subsidiary headquartered in
Vancouver, B.C.
    The company said it is vigorously continuing its efforts to
sell its Canadian operations, substantially on the terms and
conditions previously announced.


.I 3586
.C
oilseed;rapeseed;
.W
JAPANESE CRUSHERS BUY CANADIAN RAPESEED.
    WINNIPEG, April 7 - Japanese crushers bought 5,000 tonnes
of Canadian rapeseed in export business overnight for late
May/early June shipment, trade sources said.


.I 3587
.C
acq
.W
CAREPLUS <CPLS> SEEKS APPROVAL IN ACQUISITION.
    MIAMI, April 7 - CarePlus Inc said it will seek shareholder
approval of its proposed acquisition of certain assets and
assumption of certain liabilities of Professional Care Inc
<PCI>.
    In connection with the acquisition, shareholders will be
requested to approval the merger of CarePlus into its newly
formed Delaware subsidiary, CarePlus said.
    CarePlus said its board has tentatively determined that its
stock would be exchanged for common stock of the new
corporation at the rate of seven for one.


.I 3595
.C
instal-debt
.W
U.S. FEB CONSUMER CREDIT ROSE 1.77 BILLION DLRS.
    WASHINGTON, April 7 - U.S. consumer instalment credit rose
a seasonally adjusted 1.77 billion dlrs in February after a
revised rise of 789 mln dlrs in January, the Federal Reserve
Board said.
    The annual rate of growth in February was 3.7 pct, up from
1.6 pct in January. Previously the Fed said consumer credit
rose 536 mln dlrs in January.
    Among the credit categories, auto credit rose in February
by 717 mln dlrs after increasing 416 mln dlrs in January, the
Fed said.
    Revolving credit in February rose 1.04 billion dlrs after
falling by 23 mln dlrs in January.
    Mobile home credit was down by 59 mln dlrs in February
after rising 141 mln dlrs in January.
    The category referred to as "other," covering bank and credit
union loans, increased by 74 mln dlrs in February after rising
by 255 mln dlrs in January, the Fed said.
    Before seasonal adjustment, consumer credit outstanding
totaled 576.05 billion dlrs at the end of February, compared
with 530.41 billion dlrs at the end of February, 1986.


.I 3603
.C
acq
.W
GROUP TO BUY MORE INTERMEDICS <ITM> SHARES.
    WASHINGTON, April 7 - An investor group including Bessemer
Securities Corp and Cilluffo Associates told the Securities and
Exchange Commission it asked federal antitrust regulators for
advance clearance to hold more than 30 mln dlrs of Intermedics
Inc common stock.
    The group said it currently holds 1.8 mln shares or 17.6
pct of the total outstanding following purchases of 84,300
shares March 18-April 1. A group spokesman would not disclose
the total purchase price of its current holdings.
    The group has said it is accumulating Intermedics stock for
investment purposes.


.I 3606
.C
earn
.W
SEAGATE TECHNOLOGY <SGAT> 3RD QTR MARCH 3 NET.
    SCOTTS VALLEY, Calif., April 7 -
    Shr 81 cts vs 24 cts
    Net 40,453,000 vs 11,833,000
    Sales 267.1 mln vs 127.0 mln
    Avg shrs 50,226,000 vs 48,337,000
    Nine Mths
    Shr 2.07 dlrs vs 38 cts
    Net 102,564,000 vs 18,127,000
    Sales 708.0 mln vs 318.3 mln
    Avg shrs 49,573,000 vs 48,024,000


.I 3607
.C
acq
.W
GROUP RAISES TEXSTYRENE <FOAM> STAKE TO 11.7 PCT.
    WASHINGTON, April 7 - An investor group led by Dart
Container Corp, a Sarasota, Fla., plastic utensil maker, told
the Securities and Exchange Commission it raised its stake in
Texstyrene Corp to 420,500 common shares or 11.7 of the total
outstanding.
    The group said it bought the shares for investment and
intends to continue to buy Texstyrene stock in the future.
    The group said its most recent purchases included 106,000
shares bought March 10-31 in ordinary brokerage transactions.


.I 3610
.C
acq
.W
ENRO HOLDING BUYS ENRO SHIRT AND FOXCROFT.
    NEW YORK, April 7 - Enro Holding Corp said it acquired Enro
Shirt Co and Foxcroft Ltd from Wilson Bros for 30 mln dlrs.
     Enro Holding is owned 50 pct by investors and 50 pct by
management and others. The investor group bought 50 pct of the
common equity and supplied five mln dlrs in mezzanine
financing. Management bought the other 50 pct. Congress
Financial Group supplied 28 mln dlrs in senior financing and
the seller took back a note for 12.1 mln dlrs.
    Enro Shirt has annual sales of about 42 mln dlrs and
Foxcroft has sales of about 13 mln dlrs.


.I 3613
.C
earn
.W
SPARTECH <SPTN> REVERSE STOCK SPLIT APPROVED.
    ST. LOUIS, April 7 - Spartech Corp said shareholders at the
annual meeting approved a reverse stock split of the common
stock, on a one-for-five basis.
    The company said the split was necessary in preparation for
an offering of 25 mln dlrs in convertible subordinated
debentures, expected to be made soon through Kidder, Peabody
and Co.
    It said the new common stock will begin trading April 8
under the symbol "SPTNd."
    Separately, Spartech said its board appointed Bradley
Buechler as president, filling a vacancy.
    It said Lawrence Powers remains as chairman.
    Buechler, prior to his promotion, was executive vice
president and chief operating officer. He will retain his
duties as chief operating officer.


.I 3614
.C
earn
.W
PEOPLE RIDESHARING SYSTEMS <RIDE> 1ST QTR NET.
    NEWARK, N.J., April 7 -
    Shr primary profit two cts vs loss nine cts
    Shr diluted profit one cent vs loss six cts
    Net profit 17,156 vs loss 89,594
    Revs 2,360,220 vs 3,208,802
    Avg shrs 870,000 vs 1,026,627
    NOTE: full name of company is People Ridesharing Systems
Inc.


.I 3625
.C
interest
.W
DESJARDINS GROUP LOWERS VISA INTEREST RATE.
    MONTREAL, April 7 - (La Confederation des Caisses
Populaires et d'Economie Desjardins), the Quebec credit union
group, said it is lowering the interest rate on unpaid balances
on its Visa credit card to 15.9 pct from 18.0 pct, effective
with June billing statements.
    The move follows cuts in credit card interest rate charges
by several Canadian banks.


.I 3629
.C
earn
.W
SEEQ TECHNOLOGY INC <SEEQ> 2ND QTR MARCH 31.
    SAN JOSE, Calif., April 7 -
    Shr profit eight cts vs loss 1.84 dlrs
    Net profit 785,000 vs loss 4,279,000
    Revs 10.4 mln vs 8,464,000
    Avg shrs 9,649,000 vs 2,664,000
    Six Mths
    Shr loss nine cts vs loss 4.09 dlrs
    Net loss 262,000 vs loss 9,689,000
    Revs 19.2 mln vs 15.6 mln
    Avg shrs 2,874,000 vs 2,660,000


.I 3638
.C
money-fx
.W
BRAZIL ADJUST CRUZADO DOWN AGAINST DOLLAR.
    NEW RATE 22,840/22,945 PREVIOUS           
    22,690/22,803 EFFECTIVE WEDNESDAY APRIL 8

.I 3649
.C
earn
.W
NACCO INDUSTRIES <NC> TO REPORT 2ND QTR GAIN.
    CLEVELAND, April 7 - Nacco Industries Inc said it will
report a gain in the second quarter of about 11.5 mln dlrs or
1.25 dlrs a share from the sale of stock of a subsidiary.
    Nacco said its North American Coal Corp unit has received
notice that Consolidation Coal Co, a unit of Du Pont Co <DD>,
will exercise an option to buy all of the stock of Quarto
Mining Co, a subsidiary of North American Coal.
    For the stock, North American Coal will receive about 15.2
mln dlrs, 5.2 mln of which will be paid at closing April 10 and
the rest in installments, the company said.
    In addition, Quarto will pay a dividend to North American
Coal of about 10 mln dlrs from retained earnings before
closing. The funds were previously used to finance mining
operations.
    Consolidation Coal got the option from the Capco Group of
utilities, which received the option from Nacco in 1981.
    Nacco reported earnings of 10.8 mln dlrs or 1.11 dlrs a
share in last year's second quarter.
    In 1986, Quarto generated 5.9 mln dlrs in net income, equal
to 62 cts a share, of Nacco's total 1986 earnings of 3.48 dlrs
a share.
    Quarto produced about 3.6 mln short tons of the 24.3 mln
tons produced by North American Coal in 1986, Nacco said.


.I 3655
.C
earn
.W
BUFFTON <BUFF> TO POST INVESTIGATION CHARGE.
    FORT WORTH, Texas, April 7 - Buffton Corp said it will    
conduct an investigation on a plant designated as a Superfund
Site, which will result in a charge of about six cts per share
in its second quarter.
    In the year ago second quarter, Buffton reported net income
of 10 cts a share or 330,000 dlrs on sales of 10.3 mln dlrs.
     The study should be completed in nine months and will
determine any clean-up or remedial action that may be required.
Robintech Inc, the plant's former owner, will split the cost.
Buffton said its share will cost 400,000 dlrs.


.I 3662
.C
acq
.W
AMERICAN DYNAMICS <AMDC> TO SELL 51 PCT STAKE.
    COLUMBUS, Ohio, April 7 - American Dynamics Corp and
<Meridian Reserve Inc> said they signed a definitive agreement
under which Meridian will buy 81.9 mln shares, or 51 pct, of
American Dynamics' common stock.
    Under terms of the agreement, Santa Ana, Calif.-based
Meridian said it will pay Columbus-based American Dynamics one
mln dlrs in cash and notes over five years and about 500,000
shares of its common stock.
    Meridian said it has the option to issue an additional
1,500,000 shares of its common over the next two years in
payment of certain of the notes.
    Meridian, an oil and gas company whose operations are
primarily in Oklahoma, said the acquisition will increase its
its consolidated assets to 30 mln dlrs and its contractually
committed gas reserves to more than 40 mln dlrs at discounted
present value.
    American Dynamics is engaged in gas gathering, transmission
and liquids extraction, also in Oklahoma.
    The companies said they have five extracting plants and
about 525 miles of transmission lines in five adjoining
Oklahoma counties.


.I 3665
.C
ship;sugar;
.W
N.Y. SUGAR FREIGHTS - April 7.
    Nil


.I 3669
.C
money-fx
.W
USSR EXCHANGE RATES - SOVIET STATE BANK EFFECTIVE APRIL 8, 1987.
ROUBLES PER HUNDRED UNLESS STATED U.S.                  63.85  
  (63.60) STG                  103.47    (102.56) BFR (1,000)  
        16.90     (17.01) DMK                   35.06    
(35.43) DFL                   31.00     (31.20) LIT (10,000)   
       4.91      (4.94) CAN                   48.85     (48.79)
DKR                    9.28      (9.32) NKR                   
9.38      (9.34) FFR                   10.52     (10.59) SKR   
               10.06      (UNCH) FIN MRK               14.20   
  (UNCH) SFR                   42.03     (42.33) YEN (1,000)   
        4.37      (4.34) AUS SCH                4.98     
(5.01) AUS DLR               44.77      (UNCH) PAK RUP         
      3.74      (UNCH) IND RUP                5.10      (UNCH)
IRN RYL                0.88      (UNCH) LIB DIN (ONE)         
2.09      (UNCH) MRC DRHM               7.78      (UNCH)

.I 3671
.C
ship;grain;
.W
GRAIN SHIPS LOADING AT PORTLAND.
    PORTLAND, April 7 - There were six grain ships loading and
six ships were waiting to load at Portland, according to the
Portland Merchants Exchange.
  


.I 3672
.C
pet-chem
.W
ITALY'S ENI TO INVEST IN VENEZUELAN PROJECTS.
    CARACAS, April 7 - Italy's state-owned Ente Nazionale
Idrocarburi (ENI) will invest 197 mln dlrs in two joint
ventures in coal and petrochemicals with Petroleos de
Venezuela, S.A, ENI president Franco Reviglio said.
    Speaking at a news conference, Reviglio said the two
projects will eventually bring in some 300 mln dlrs annually in
foreign exchange to Venezuela and help diversify the country's
export base. "Joint ventures are the principal instrument for
allowing the resources of the industrialized countries to be
channeled to the developing world so as to lead future growth
for both," Reviglio said.
    ENI's subsidiary Ecofuel will join Pequiven, the
petrochemical subsidiary of PDVSA in building a 160 mln dlr
plant to produce mtbe, a gasoline additive used to increase
octane levels.
    The 500,000 mt per year plant will be constructed at Jose
in eastern Venezuela, and fed by butane produced at PDVSA's
eastern cryogenic complex. ENI owns 48 pct of the joint venture
company, Super Octanos, C.A., while Pequiven has 49 pct, with
the remaining three pct to be sold to private investors.
    Production is set to begin in third quarter 1989. Ecofuel
officials said the plant is modeled after one in Saudi Arabia.
    Another ENI subsidiary, Agip Carbone, will sign a letter of
intent in Caracas tomorrow to enter a partnership with PDVSA to
mine the coal deposits at guasare in western zulia state, he
said.
    Feasibility studies are still being done on the carbozulia
project, with a definitive accord slated for august, he added.
    Agip carbone and atlantic richfield coal, an arco
subsidiary have formed a consortium which will own 48 pct of
the carbozulia project, whose total cost is estimated at 500
mln dlrs, the company said. Agip carbone will invest 24 pct, or
120 mln dlrs, in the project, it said.


.I 3680
.C
earn
.W
REPUBLICBANK <RPT> TO RECLASSIFY BRAZIL LOANS.
    DALLAS, April 7 - RepublicBank Corp said it has placed
182.6 mln dlrs of all intermediate and term loans to Brazil on
a non-accrual basis as of March 31.
    It said the reclassification will reduce first quarter
earnings by 2.8 mln dlrs after taxes, and 11 mln dlrs after
taxes for all of 1987, if Brazil does not change its position
of a moratorium on interest payments.
    RepublicBank also said its net income for the first quarter
is expected to be about 10.4 mln dlrs or 30 cts a share on a
fully diluted basis. In the year-ago first quarter the company
earned 23.1 mln dlrs or 75 cts a share.
    The company also said its first quarter results are
expected to include a provision for loan losses of 55 mln dlrs,
about 20 mln dlrs over net loan-charge-offs of about 35 mln
dlrs. It said the provision will increase loan losses to about
328 mln dlrs or 2.2 pct of loans.
    RepublicBank, with total assets of about 21 billion dlrs,
announced in December an agreement with InterFirst Corp <IFC>
to form First RepublicBank Corp. If the merger is approved by
regulatory agencies and stockholders, it would create the 12th
largest bank holding company in the United States.


.I 3681
.C
heat;gas;crude;
.W
SUPPLIES, MIDEAST TENSION FUEL GAINS IN OIL.
    CHICAGO, April 7 - Petroleum futures rallied today in a
market that was expecting declines in domestic supplies and
became further unsettled by escalated Mideast fighting.
    Crude oil, gasoline and heating oil all posted gains on the
New York Mercantile Exchange, with crude oil prices matching
life-of-contract highs. Crude for delivery in May closed 17
cents higher at 18.84 dlrs a barrel.
    "Crude futures could jump above 19 dlrs a barrel but will
not remain there long if products are not strong," Robert
Murphy, account executive at E.F. Hutton, said.
    Traders said prices were supported by anticipation that the
American Petroleum Institute would report a decline in domestic
inventories of petroleum products in a weekly report.
    Traders said prices also were supported by an escalation in
the Iran-Iraq war, with the Iranians reportedly launching a new
offensive against Iraqi positions, and Iraq attacking offshore
oil fields and an oil export depot.
    Buying by speculators continued to prompt gains in gold and
silver futures on the Commodity Exchange in New York.
    Gold prices retreated at midday, but rallied before the
close with support from the silver market, which was
approaching two-year highs, traders said.
    Soybean futures posted strong gains on the Chicago Board of
Trade, while corn and wheat were mostly higher.
    Traders said cash sales have been slow in the country, and
the soybean harvest in Brazil has been delayed by rain, which
is limiting supplies.
    In addition, the Agriculture Department last week projected
a substantial drop in soybean acreage this year.     Monday's
report that the USDA inspected 46 mln bushels of corn for
export last week was unexpectedly high and, coupled with a lack
of farm sales, provided support for the corn market, traders
said.
    Live hogs and frozen pork bellies rallied on the Chicago
Mercantile Exchange, while cattle ended lower.
    Live hogs pushed ahead on a lack of supplies because many
farmers are turning their attention to spring planting rather
than marketing livestock, traders said, noting that cash sales
have been lighter than expected this week.
    The lack of marketing also has supported pork bellies, but
prices drifted lower for moderate losses in nearby months as
speculators sold contracts to take profits, traders said.
    Cattle prices closed lower but continued to show strength
related to tight supplies.
    Prices pushed ahead to new contract highs, extending gains
past three-year peaks set Monday, as tight supplies forced meat
packers to bid aggressively for available animals.
    However, some traders sold contracts to take profits after
the extended rally, which has seen the April delivery contract
soar to 69.90 cents a pound from 56 cents a pound at the start
of the year.
    New York coffee futures closed higher on trade talk Brazil
would not be an aggressive seller near term, analysts said.


.I 3684
.C
ship;grain;
.W
N.Y. GRAIN FREIGHTS - April 7.
    Yukong took Nichiku Maru 52,000 tonnes North Pacific to
Japan April-May dates 9.75 dlrs 11 days all purposes
    Peavey took Maria Sitinas 26,000 tonnes U.S. Gulf to Puerto
Cabello and Guanta prompt 15.25 dlrs four days load 1,500
discharge Puerto Cabello 1,000 Guanta
    Portline took Sky Crest 35,000 tonnes U.S. Gulf to Lisbon
spot 15.25 dlrs 7,000 load 5,000 discharge
    Feruzzi took Alecos M. 31,000 tonnes barley Rouen
completing Le Havre to Jeddah 15.35 dlrs 5,000 load 3,000
discharge
    Chinese charterers took Patricia VI 25,000 tonnes River
Plate completing Buenos Aires or Bahia Blanca to China April
dates 29.00 dlrs Buenos Aires or Bahia Blanca only 28.00 dlrs
2,500 load 3,000 discharge
    Comanav took Sea Song 30,000 tonnes U.S. Gulf to Morocco
April-May dates 13.50 dlrs one-to-one option 14.50 dlrs
one-to-two 5,000 load 5,000 discharge


.I 3687
.C
gas;crude;
.W
******API SAYS DISTILLATE STOCKS UP 628,000 BBLS, GASOLINE UP 2.29 MLN, CRUDE UP 8.52 MLN.
Blah blah blah.

.I 3689
.C
oilseed;grain;soybean;
.W
SOUTHERN TEXAS GRAIN DIFFERENTIALS ADJUSTED.
    WASHINGTON, April 7 - Posted county prices in 99 southern
Texas counties have been changed to reflect only one market
differential instead of the usual two-terminal market pricing
system, a senior Agriculture Department official said.
    Interior grain and soybean prices in the affected counties
will now be based solely against the Texas Gulf. Prior to the
change, county prices were also priced against the Amarillo
market.
    The changes were made to better reflect local market
conditions, said Ralph Klopfenstein, deputy administrator for
commodity operations at USDA.
    "The Texas Gulf has always been the dominant market in those
counties. Amarillo never became effective for that area,"
Klopfenstein told Reuters.


.I 3692
.C
ship;crude;
.W
N.Y. TANKERS - April 7.
    Ashland took Majestic Pride 45,000 tons dirty April 12 East
Coast Mexico to U.S. Gulf worldscale 120
    Frota took Fidelity L 49,000 tons dirty April 21 Brazil to
United States worldscale 118
    CPC took Eisho Maru 220,000 tons dirty April 12 Mideast
Gulf to Taiwan worldscale 35
    Citgo took Friendship Venture 67,000 tons dirty April 16
Caribbean to U.S. Gulf worldscale 89
    MSC took Loire 52,000 tons dirty April 10 East Coast Mexico
to U.S. Gulf worldscale 92.5


.I 3698
.C
acq
.W
AMOSKEAG BANK <AMKG> TO SEEK REHEARING.
    MANCHESTER, N.H., April 7 - Amoskeag Bank Shares Inc and
<Portsmouth Savings Bank> said they will file motions for a
rehearing with the New Hampshire Supreme Court of its March 30
ruling that overturned state regulatory approval of Amoskeag's
acquisition Portsmouth.
    "The ramifications of this decision, we believe, go well
beyond the affiliation of Amoskeag and Portsmouth Savings
Bank," said Amoskeag chairman William S. Bushnell.
    The transaction was opposed by a group of Portsmouth
investors who wanted the bank to remain independent, according
to press reports.


.I 3701
.C
wheat;grain;
.W
EGYPT SAID TO CANCEL PL480 SOFT WHEAT TENDER.
    KANSAS CITY, April 7 - Egypt has cancelled its Export Bonus
tender for 200,000 tonnes of soft red winter wheat for May-June
shipment after failing to bid a price acceptable to USDA,
private export sources said.


.I 3702
.C
strategic-metal
.W
DOE RECOMMENDS SPECIAL UNIT TO ENRICH URANIUM.
    WASHINGTON, April 7 - Energy Secretary John Herrington told
Congress that a federally chartered corporation would be the
best way to manage and operate the government's uranium
enrichment program.
    He said in a letter to Congressmen that unless the program,
now run by the Energy Department, is improved, sales worth five
billion dlrs could be lost between 1990 and 2000.
    The program now has annual commercial sales of about one
billion dlrs and holds 50 pct of the free world market for
enrichment services.
    A department official said the world market for enriched
uranium for reactors for power utilities is increasingly
competitive and private entity could better tap it.
    The Administration's plan to spin off the department's 
uranium enrichment operation is in line with it effort to
reduce the federal government's role in areas where it feels
private enterprise could be more efficient.


.I 3704
.C
wheat;grain;
.W
JORDAN BOOSTS BIDS IN EXPORT BONUS WHEAT TENDER.
    KANSAS CITY, April 7 - Jordan has boosted its bids for U.S.
soft and hard wheat under Export Bonus, private export sources
said.
    Jordan today bid 74 dlrs per tonne for soft wheat and 75
dlrs per tonne for hard red winter wheat in its tender for
225,000 tonnes of hard and soft wheat for April through
November shipment. Earlier today, USDA rejected its bids of 70
dlrs for both varieties, they said.


.I 3705
.C
wheat;grain;
.W
MOROCCO TENDERS THURSDAY FOR PL 480 WHEAT.
    KANSAS CITY, April 7 - Morocco will tender Thursday for
120,000 to 210,000 tonnes of U.S. wheat, cheapest variety
preferred, for May and June shipments under PL 480, private
export sources said.
    The tender will consist of three lots of up to 70,000
tonnes each for shipment May 1-30, May 10-June 10, and May
25-June 25, they said.


.I 3712
.C
earn
.W
TRILON DECLARES STOCK DIVIDEND.
    TORONTO, April 7 - <Trilon Financial Corp> said it declared
a stock dividend of one class A share for each two class A
shares held, payable May 15 to shareholders of record on April
30.


.I 3715
.C
gas;crude;fuel;
.W
API SAYS DISTILLATE, GASOLINE STOCKS UP IN WEEK.
    WASHINGTON, April 7 - Distillate fuel stocks held in
primary storage rose by 628,000 barrels in the week ended April
three to 106.96 mln barrels from a revised 106.33 mln the
previous week, the American Petroleum Institute said.
    In its weekly statistical bulletin, the oil industry trade
group said gasoline stocks rose 2.29 mln barrels to 247.91 mln
barrels from a revised 245.62 mln, and crude oil stocks were up
8.52 mln barrels to 337.73 mln from a revised 329.21 mln.
    It said residual fuel stocks rose 28,000 barrels to 38.25
mln from a revised 37.98 mln barrels.
    API said refinery runs in the week rose to 12.54 mln
barrels per day from 12.21 mln and refinery use of operating
capacity was 80.4 pct, up from 78.3 pct.
    Crude oil imports in the week fell to 3.40 mln bpd from a
revised 3.60 mln, API added.


.I 3719
.C
acq
.W
ALLEGHENY <AG> PREFERED SHAREHOLDERS FILE SUIT.
    NEW YORK, April 7 - Allegheny International Inc, which has
agreed to a merge with a jointly-formed First Boston Inc
affiliate in a deal worth 500 mn dlrs, said shareholders of its
preferred stock have filed a class action complaint against the
company.
    The complaint alleges, among other things, that the company
and its board agreed to pay First Boston an illegal seven mln
dlr topping fee if it received a higher offer for the company
prior to the buyout.
    The suit contends that this fee hampers Allegheny's ability
to attract other offers or take other actions that would
benefit holders of preferred stock. The complaint also alleges
federal securities laws violations and breach of fiduciary
duty.
    The suit requests an injunction against proceeding with the
pending offer being made by Sunter Acquisition to acquire
Allegheny. Sunter Acquisition Corp and Sunter Holdings Corp
were formed by First Boston and Allegheny.
    Allegheny said it and the Sunter concerns intend to
vigorously defend the complaint's charges.
    The complaints were filed by Robert Moss and other parties
who are believed to own about 230,000 shares of Allegheny's
preferred stock.


.I 3722
.C
trade
.W
CANADIANS URGE EXEMPTION FROM U.S. TRADE BILL.
    WASHINGTON, April 7 - A group of Canadian lawmakers from
Ontario today asked their U.S. counterparts to exempt Canada
from the mandatory trade retaliation provisions in a major
trade bill being considered by the U.S. Congress.
    At a meeting of the Northeast-Midwest Coalition, an
organization of U.S. legislators, David Cooke, chairman of the
Ontario Parliament's Select Committee on Economic Affairs, said
the exemption would help trade relations.
    The trade legislation to be considered by the full House in
late April would require President Reagan to retaliate against
foreign unfair trade practices unless the trade actions would
harm the U.S. economy.
    Currently, Reagan can reject trade sanctions on any
grounds.
    Cooke, a member of the Liberal party, told the U.S.
congressmen, "I can understand (the trade bill). I think it has
to do with concerns you have with the other parts of the world."
    "I would suggest to you that we are your best friends. You
do not have those concerns with Canada and you should sincerely
consider exempting our country from that bill," he added.
    Canada is the United States' largest trading partner, with
two-way trade more than 113 billion dlrs in 1985, according to
the coalition. But the U.S. ran up a 23 billion dlr deficit in
manufactured goods that year compared to a 14 billion dlr
surplus in services trade with its neighbour.


.I 3727
.C
earn
.W
AMERICAN AGRONOMICS CORP <AGR> 2ND QTR FEB 28.
    LAKE HAMILTON, Fla, April 7 -
    Shr profit one cts vs loss three cts
    Net profit 641,000 vs loss 992,000
    Revs 26.0 mln vs 19.0 mln
    Six months
    Shr profit six cts vs loss six cts
    Net profit 2.8 mln vs loss 1.8 mln
    Revs 39.0 mln vs 37.4 mln
    NOTE:1987 six months includes gain of four cts from change
in accounting principle.


.I 3734
.C
earn
.W
HELIG-MEYERS CO <HMY> INCREASES DIVIDEND.
    RICHMOND, Va, APril 7 -
    Qtly div eight cts vs seven cts prior
    Payable May 15
    Record APril 29


.I 3735
.C
earn
.W
HELIG-MEYERS CO <HMY> YEAR FEB 28.
    RICHMOND, Va, APril 7 -
    Shr 1.30 dlrs vs 1.07 dlrs
    Net 13.6 mln dlrs vs 10.2 mln
    Revs 271.2 mln vs 182.3 mln
    NOTE:1986 results reflect year 11 month period because
company changed fiscal year to end February 28 from March 31.


.I 3738
.C
earn
.W
KELLY OIL AND GAS PARTNERS <KLY> YEAR DEC 31.
    HOUSTON, April 7 -
    Shr 36 cts vs 43 cts
    Net 1.3 mln vs 1.7 mln
    Revs 9.0 mln vs 7.9 mln


.I 3740
.C
money-fx
.W
JAPAN SEEKS TO STRENGTHEN PARIS CURRENCY ACCORD.
    By Hisanobu Ohse, Reuters
    WASHINGTON, April 7 - Japan will seek to strengthen the
Paris accord on currency stability at the meeting of the group
of seven leading industrial nations tomorrow, Japanese
officials said.
    However, the officials travelling with Japanese Finance
Minister Kiichi Miyazawa and who asked not to be identified,
would not provide any details of how they wanted the accord,
which was signed by the six leading industrial democracies in
February, to be strengthened.
    Currency target zones, or reference ranges, will not be
discussed at the G-7 meeting which is scheduled for tomorrow,
the Japanese officials said.
    The meeting, which is being held in conjunction with this
week's International Monetary Fund/World Bank sessions, will
reaffirm the currency pact and there is no need for changing 
the language used in the Paris accord, the officials said.
    Miyazawa met with U.S. Treasury Secretary James Baker early
in this afternoon and discussed the dollar/yen exchange rates,
officials said, but they declined to disclosed the details of
that discussion.
    The Japanese officials also declined to detail what
Miyazawa and Baker discussed on the subject of greater joint
intervention in currency markets to stabilize the dollar or on
independent American intervention.
    The officials said such a money market action to stabilize
the dollar is not only for the benefit of Japan, which is
suffering from a sharp appreciation in its currency, but also
for the benefit of the United States as well.
    As to U.S. urgings for Japan to take steps to boost its
domestic demand to reduce its trade surplus, Japan will explain
economic measures to the G-7, the officials said.
    However, Miyazawa failed to outline the size of the
Japanese economic package in his meeting with Baker today
because the Japanese 1987/88 budget has not been authorized by
the Diet, or parliament, despite the new fiscal year which
started April one, the officials said.
    Japan's ruling liberal democratic party revealed its own
economic package today calling for more than 5,000 billion yen
in additional spending.


.I 3744
.C
earn
.W
TCW CONVERTIBLE SECURITIES <CVT> SETS DIVIDEND.
    LOS ANGELES, April 7 - TCW Convertible Securities Fund Inc
said its board declared an initial quarterly dividend of three
cents per share, payable April 30 to shareholders of record
April 17.
    TCW said it anticipates paying a regular quarterly
dividend. The company made its initial public stock offering
March five.


.I 3750
.C
dlr;money-fx;stg;yen;can;
.W
CURRENCY FUTURES TO KEY OFF G-5, G-7 MEETINGS.
    by Brad Schade, Reuters
    CHICAGO, April 7 - News of an agreement among G-5 and G-7
finance ministers meeting in Washington this week will be key
to the direction of currency futures at the International
Monetary Market, but any such agreement will need to go beyond
the Paris accord to stem the recent rise in futures, financial
analysts said.
    "If they (the finance ministers) give the market something
really new to look at -- that is, some package that goes beyond
the Paris agreement -- you could have a real boost in the
dollar," said Shearson Lehman Brothers analyst Anne Mills.
    On the other hand, "anything neutral would tend to be
bearish for the dollar," Mills said.
    Traders and analysts agree a simple reaffirmation of the
Paris accord will not be enough to halt the decline in the
dollar, nor will central bank intervention.
    "A lot of people are looking for a reason to buy currencies
and sell the dollar," said one trader for a large retail firm
on the floor of the IMM.
    "If there is no concrete resolution, they will be looking
to sell the dollar, possibly down to the 1.80 mark level," he
said.
    Technically, most currency futures are poised for another
rise, said Smith Barney Harris Upham analyst Craig Sloane.
    Sloane noted that June yen futures set a new contract high
on Tuesday and closed at its best level ever, while June
sterling set a new contract high on Monday.
    "Everything seems to be coming to a head right now and you
don't need much to get things rolling," Sloane said.
    In particular, the June Canadian dollar, for which Sloane
recently put out a buy recommendation, has hovered in a range
between 0.7600 and 0.7660 in recent weeks, forming a triangle
on the charts from which it may soon break out on the upside.
    A close above the contract high of 0.7665 would signal a
breakout, Sloane said, and would likely mean the nearby
Canadian dollar contract would extend its advance to near the
0.7800 level. June Canadian dollar closed at 0.7656 Tuesday.
    Mills noted, however, that interest rate differentials
between Canadian securities and U.S. securities have narrowed
dramatically recently, with yields on 10-year Canadian bonds
only about 80 basis points above U.S. 10-year notes.
    What has helped the Canadian currency, she noted, is an
increasing proportion of foreign funds flowing into the
Canadian equity market, particularly from Japanese investors.
    Other analysts, however, said currency futures may be near
the top of their long-term rally.
    "Something will be done at the (G-5 and G-7) meeting to
calm people," said David Horner of Merrill Lynch Economics.
    The Paris accord has pretty much fixed where major European
currencies will trade, Horner said.
    But sterling futures may still make another run for new
highs, up to 1.6300 to 1.6500 dlr in the June contract, on the
positive atmosphere that will prevail before British elections
and possibly another interest rate cut, Horner said. The June
British pound closed at 1.6080 on Tuesday.
    Horner said that new boundaries for the trading range of
the yen are likely to come out of the G-5 and G-7 meetings.
    The most likely range will be a bottom for the dollar
between 140 to 142 yen per dollar and a top near 150 to 152
yen, Horner said. In yen futures, the bottom of the dollar's
range would be equivalent to 0.007100 to 0.007150 in the June
contract. June yen closed at 0.006913 on Tuesday.
    If such a range does emerge from the meetings, "we will
have one more rally in the yen," Horner said.


.I 3753
.C
dlr;money-fx;cpi;trade;money-supply;
.W
POEHL WARNS AGAINST FURTHER DOLLAR FALL.
    WASHINGTON, April 7 - Bundesbank President Karl Otto Poehl
said a weaker dollar would be risky and a further appreciation
of the mark would damage prospects for sustained West German
economic growth.
    In a speech to the Institute of Contempory German Affairs
here, Poehl said "It would be an extremely risky policy to aim
for a further substantial decline in the value of the dollar to
correct the trade deficit."
    He said the United States could face a vicious circle of
depreciation, inflation and more depreciation if it took that
route.
    Poehl noted West Germany had already taken steps to meet
U.S. Demands for greater stimulation of its domestic economy,
accelerating tax cuts, cutting interest rates and tolerating
above-target money supply growth.
    He said he would have been happy to have brought forward
five billion marks of tax cuts now planned for January 1988 to
the beginning of this year, but he said the government faced
political constraints getting such measures through the upper
house of the West German parliament.
    But there were also limits to the impact West Germany could
accept on exports from a rising mark, he said.
    Poehl said West Germany relied on exports for about
one-third of its gross national product, so a substantial
erosion of export markets could not be offset by increasing
demand at home.
    "A further appreciation of the mark could even be an
obstacle to further growth," he said.
    Poehl said the Bundesbank had tolerated rapid money supply
growth last year because the country enjoyed low inflation and
because external factors, including low oil prices and
favourable terms of trade, had given some extra leeway.
    But Poehl said West Germany now faced a difficult dilemma
over monetary policy.
    The underlying rate of inflation was now two pct, not the
reported negative inflation rates last year, and West Germany
was affected more than before by exchange rate developments.
    "For the time being, we will have to focus our policy more
on the external side, and we can live with a more expansionary
money supply. But we must be very careful," he said.
    He said he shared some of the U.S. Concern about Japan's
trade surpluses, which affected European countries as well as
the United States.
    Poehl welcomed the so-called Louvre accord of monetary
officials of major industrialized countries, saying the
importance of the February 22 agreement to stabilize exchange
rates had been underestimated.
    All partners had agreed that the dollar was at about the
right level, and that further changes would damage growth, he
said.
    "This was a remarkable change in attitude, especially on the
part of our American colleagues," he said.
    But he said there was still a danger that the correction of
the dollar's value could overshoot.


.I 3754
.C
jobs
.W
N.Z. UNEMPLOYMENT RATE 3.9 PCT IN DECEMBER QUARTER.
    WELLINGTON, April 8 - New Zealand's unemployment rate was
3.9 pct of the workforce in the quarter ended December 31,
unchanged from a revised 3.9 pct (preliminary 3.8 pct) in the
previous quarter but slightly above 3.8 pct in the year-earlier
quarter, the Statistics Department said.
    The Department, citing the Household Labour Force Survey,
said in a statement the number of unemployed in October-
December 1986 was 61,500 against 60,500 in the September
quarter and 60,500 a year earlier.


.I 3760
.C
dlr;money-fx;
.W
******Bank of Japan buys dollars shortly after opening at around 145.30 yen -- dealers.
Blah blah blah.

.I 3762
.C
dlr;money-fx;
.W
BANK OF JAPAN INTERVENES SOON AFTER TOKYO OPENING.
    TOKYO, April 8 - The Bank of Japan bought a small amount of
dollars shortly after the opening at around 145.30 yen, dealers
said.
    The central bank intervened as a medium-sized trading house
sold dollars, putting pressure on the U.S. Currency, they said.
    The dollar was also supported by a major electrical
consumer goods company, which was a speculative dollar buyer at
around 145.25 yen, they added.
    The dollar opened at 145.33 yen against 145.60/70 in New
York and 145.25 at the close here yesterday.


.I 3766
.C
rubber
.W
JAPAN RUBBER STOCKS FALL IN MARCH.
    TOKYO, April 8 - Japan's rubber stocks fell to 44,980
tonnes in March from 46,198 in February and from 53,784 in
March 1986, the Japan Rubber Trade Association said.
    The stocks (in tonnes), with February and year-earlier
comparisons, were -
                    March 87  Feb 87    March 86
    Crude Rubber     41,536   42,094     49,551
    Synthetic         3,334    3,978      4,044
    Latex               110      126        189


.I 3768
.C
money-fx
.W
SOUTH KOREAN WON FIXED AT 25-MONTH HIGH.
    SEOUL, April 8 - THE BANK OF KOREA SAID IT FIXED THE
MIDRATE OF THE WON AT 844.30 TO THE DOLLAR, ITS HIGHEST LEVEL
SINCE FEBRUARY 26, 1985, WHEN IT WAS 843.90.
    THE WON WAS SET at 845.50 YESTERDAY.
    THE WON HAS RISEN 2.03 PCT AGAINST THE DOLLAR SO FAR THIS
YEAR, AFTER RISING 3.34 PCT IN 1986.


.I 3788
.C
copper
.W
NIPPON MINING LOWERS COPPER PRICE.
    TOKYO, April 8 - Nippon Mining Co Ltd said it lowered its
selling price for electrolytic copper by 10,000 yen per tonne
to 260,000, effective immediately.


.I 3801
.C
ship
.W
AUSTRALIAN UNIONS LAUNCH NEW SOUTH WALES STRIKES.
    SYDNEY, April 8 - Australian trade unions said they have
launched week-long strikes and other industrial action in New
South Wales (NSW) to protest against new laws that would reduce
injury compensation payments.
    Union sources said talks with the state government broke
down last night, but the two sides are scheduled to meet later
today in an attempt to find a compromise.
    Rail freight and shipping cargo movements in the country's
most populous state were the first to be affected, and union
officials said almost every business sector will be hit unless
there is a quick settlement.
    The state government recently introduced a new workers'
compensation act which would cut the cash benefits to injured
workers by up to a third. The act is now awaiting parliamentary
ratification.
    NSW state premier Barrie Unsworth has said workers'
compensation has risen steeply in recent years and the proposed
cuts would save hundreds of mlns of dollars a year.
    Union officials said industrial action could spread to
other states as the federal government also plans to make sharp
cuts in workers' compensation.


.I 5544
.C
cocoa
.W
BAHIA COCOA REVIEW.
    SALVADOR, Feb 26 - Showers continued throughout the week in
the Bahia cocoa zone, alleviating the drought since early
January and improving prospects for the coming temporao,
although normal humidity levels have not been restored,
Comissaria Smith said in its weekly review.
    The dry period means the temporao will be late this year.
    Arrivals for the week ended February 22 were 155,221 bags
of 60 kilos making a cumulative total for the season of 5.93
mln against 5.81 at the same stage last year. Again it seems
that cocoa delivered earlier on consignment was included in the
arrivals figures.
    Comissaria Smith said there is still some doubt as to how
much old crop cocoa is still available as harvesting has
practically come to an end. With total Bahia crop estimates
around 6.4 mln bags and sales standing at almost 6.2 mln there
are a few hundred thousand bags still in the hands of farmers,
middlemen, exporters and processors.
    There are doubts as to how much of this cocoa would be fit
for export as shippers are now experiencing dificulties in
obtaining +Bahia superior+ certificates.
    In view of the lower quality over recent weeks farmers have
sold a good part of their cocoa held on consignment.
    Comissaria Smith said spot bean prices rose to 340 to 350
cruzados per arroba of 15 kilos.
    Bean shippers were reluctant to offer nearby shipment and
only limited sales were booked for March shipment at 1,750 to
1,780 dlrs per tonne to ports to be named.
    New crop sales were also light and all to open ports with
June/July going at 1,850 and 1,880 dlrs and at 35 and 45 dlrs
under New York july, Aug/Sept at 1,870, 1,875 and 1,880 dlrs
per tonne FOB.
    Routine sales of butter were made. March/April sold at
4,340, 4,345 and 4,350 dlrs.
    April/May butter went at 2.27 times New York May, June/July
at 4,400 and 4,415 dlrs, Aug/Sept at 4,351 to 4,450 dlrs and at
2.27 and 2.28 times New York Sept and Oct/Dec at 4,480 dlrs and
2.27 times New York Dec, Comissaria Smith said.
    Destinations were the U.S., Covertible currency areas,
Uruguay and open ports.
    Cake sales were registered at 785 to 995 dlrs for
March/April, 785 dlrs for May, 753 dlrs for Aug and 0.39 times
New York Dec for Oct/Dec.
    Buyers were the U.S., Argentina, Uruguay and convertible
currency areas.
    Liquor sales were limited with March/April selling at 2,325
and 2,380 dlrs, June/July at 2,375 dlrs and at 1.25 times New
York July, Aug/Sept at 2,400 dlrs and at 1.25 times New York
Sept and Oct/Dec at 1.25 times New York Dec, Comissaria Smith
said.
    Total Bahia sales are currently estimated at 6.13 mln bags
against the 1986/87 crop and 1.06 mln bags against the 1987/88
crop.
    Final figures for the period to February 28 are expected to
be published by the Brazilian Cocoa Trade Commission after
carnival which ends midday on February 27.


.I 5548
.C
wheat;grain;barley;corn;sorghum;oat;
.W
NATIONAL AVERAGE PRICES FOR FARMER-OWNED RESERVE.
    WASHINGTON, Feb 26 - The U.S. Agriculture Department
reported the farmer-owned reserve national five-day average
price through February 25 as follows (Dlrs/Bu-Sorghum Cwt) -
         Natl   Loan           Release   Call
         Avge   Rate-X  Level    Price  Price
 Wheat   2.55   2.40       IV     4.65     --
                            V     4.65     --
                           VI     4.45     --
 Corn    1.35   1.92       IV     3.15   3.15
                            V     3.25     --
 X - 1986 Rates.

          Natl   Loan          Release   Call
          Avge   Rate-X  Level   Price  Price
 Oats     1.24   0.99        V    1.65    -- 
 Barley   n.a.   1.56       IV    2.55   2.55
                             V    2.65    -- 
 Sorghum  2.34   3.25-Y     IV    5.36   5.36
                             V    5.54    -- 
    Reserves I, II and III have matured. Level IV reflects
grain entered after Oct 6, 1981 for feedgrain and after July
23, 1981 for wheat. Level V wheat/barley after 5/14/82,
corn/sorghum after 7/1/82. Level VI covers wheat entered after
January 19, 1984.  X-1986 rates. Y-dlrs per CWT (100 lbs).
n.a.-not available.


.I 5549
.C
oilseed;veg-oil;wheat;grain;corn;soybean;sunseed;sorghum;linseed;soy-oil;sun-oil;
.W
ARGENTINE 1986/87 GRAIN/OILSEED REGISTRATIONS.
    BUENOS AIRES, Feb 26 - Argentine grain board figures show
crop registrations of grains, oilseeds and their products to
February 11, in thousands of tonnes, showing those for futurE
shipments month, 1986/87 total and 1985/86 total to February
12, 1986, in brackets:
    Bread wheat prev 1,655.8, Feb 872.0, March 164.6, total
2,692.4 (4,161.0).
    Maize Mar 48.0, total 48.0 (nil).
    Sorghum nil (nil)
    Oilseed export registrations were:
    Sunflowerseed total 15.0 (7.9)
    Soybean May 20.0, total 20.0 (nil)
    The board also detailed export registrations for
subproducts, as follows,
    SUBPRODUCTS
    Wheat prev 39.9, Feb 48.7, March 13.2, Apr 10.0, total
111.8 (82.7) .
    Linseed prev 34.8, Feb 32.9, Mar 6.8, Apr 6.3, total 80.8
(87.4).
    Soybean prev 100.9, Feb 45.1, MAr nil, Apr nil, May 20.0,
total 166.1 (218.5).
    Sunflowerseed prev 48.6, Feb 61.5, Mar 25.1, Apr 14.5,
total 149.8 (145.3).
    Vegetable oil registrations were :         
    Sunoil prev 37.4, Feb 107.3, Mar 24.5, Apr 3.2, May nil,
Jun 10.0, total 182.4 (117.6).                  
    Linoil prev 15.9, Feb 23.6, Mar 20.4, Apr 2.0, total 61.8,
(76.1).                         
    Soybean oil prev 3.7, Feb 21.1, Mar nil, Apr 2.0, May 9.0,
Jun 13.0, Jul 7.0, total 55.8 (33.7).

.I 5552
.C
earn
.W
CHAMPION PRODUCTS <CH> APPROVES STOCK SPLIT.
    ROCHESTER, N.Y., Feb 26 - Champion Products Inc said its
board of directors approved a two-for-one stock split of its
common shares for shareholders of record as of April 1, 1987.
    The company also said its board voted to recommend to
shareholders at the annual meeting April 23 an increase in the
authorized capital stock from five mln to 25 mln shares.


.I 5553
.C
acq
.W
COMPUTER TERMINAL SYSTEMS <CPML> COMPLETES SALE.
     COMMACK, N.Y., Feb 26 - Computer Terminal Systems Inc said
it has completed the sale of 200,000 shares of its common
stock, and warrants to acquire an additional one mln shares, to
<Sedio N.V.> of Lugano, Switzerland for 50,000 dlrs.
    The company said the warrants are exercisable for five
years at a purchase price of .125 dlrs per share.
    Computer Terminal said Sedio also has the right to buy
additional shares and increase its total holdings up to 40 pct
of the Computer Terminal's outstanding common stock under
certain circumstances involving change of control at the
company.
    The company said if the conditions occur the warrants would
be exercisable at a price equal to 75 pct of its common stock's
market price at the time, not to exceed 1.50 dlrs per share.
    Computer Terminal also said it sold the technolgy rights to
its Dot Matrix impact technology, including any future
improvements, to <Woodco Inc> of Houston, Tex. for 200,000
dlrs. But, it said it would continue to be the exclusive
worldwide licensee of the technology for Woodco.
    The company said the moves were part of its reorganization
plan and would help pay current operation costs and ensure
product delivery.
    Computer Terminal makes computer generated labels, forms,
tags and ticket printers and terminals.


.I 5554
.C
earn
.W
COBANCO INC <CBCO> YEAR NET.
    SANTA CRUZ, Calif., Feb 26 -
    Shr 34 cts vs 1.19 dlrs
    Net 807,000 vs 2,858,000
    Assets 510.2 mln vs 479.7 mln
    Deposits 472.3 mln vs 440.3 mln
    Loans 299.2 mln vs 327.2 mln
    Note: 4th qtr not available. Year includes 1985
extraordinary gain from tax carry forward of 132,000 dlrs, or
five cts per shr.


.I 5555
.C
earn;acq;
.W
OHIO MATTRESS <OMT> MAY HAVE LOWER 1ST QTR NET.
    CLEVELAND, Feb 26 - Ohio Mattress Co said its first
quarter, ending February 28, profits may be below the 2.4 mln
dlrs, or 15 cts a share, earned in the first quarter of fiscal
1986.
    The company said any decline would be due to expenses
related to the acquisitions in the middle of the current
quarter of seven licensees of Sealy Inc, as well as 82 pct of
the outstanding capital stock of Sealy.
    Because of these acquisitions, it said, first quarter sales
will be substantially higher than last year's 67.1 mln dlrs.
    Noting that it typically reports first quarter results in
late march, said the report is likely to be issued in early
April this year.
    It said the delay is due to administrative considerations,
including conducting appraisals, in connection with the
acquisitions.


.I 5556
.C
earn
.W
AM INTERNATIONAL INC <AM> 2ND QTR JAN 31.
    CHICAGO, Feb 26 -
    Oper shr loss two cts vs profit seven cts
    Oper shr profit 442,000 vs profit 2,986,000
    Revs 291.8 mln vs 151.1 mln
    Avg shrs 51.7 mln vs 43.4 mln
    Six mths
    Oper shr profit nil vs profit 12 cts
    Oper net profit 3,376,000 vs profit 5,086,000
    Revs 569.3 mln vs 298.5 mln
    Avg shrs 51.6 mln vs 41.1 mln
    NOTE: Per shr calculated after payment of preferred
dividends.
    Results exclude credits of 2,227,000 or four cts and
4,841,000 or nine cts for 1986 qtr and six mths vs 2,285,000 or
six cts and 4,104,000 or 11 cts for prior periods from
operating loss carryforwards.


.I 5557
.C
earn
.W
BROWN-FORMAN INC <BFD> 4TH QTR NET.
    LOUISVILLE, Ky., Feb 26 -
    Shr one dlr vs 73 cts
    Net 12.6 mln vs 15.8 mln
    Revs 337.3 mln vs 315.2 mln
    Nine mths
    Shr 3.07 dlrs vs 3.08 dlrs
    Net 66 mln vs 66.2 mln
    Revs 1.59 billion vs 997.1 mln


.I 5561
.C
earn
.W
DEAN FOODS <DF> SEES STRONG 4TH QTR EARNINGS.
    CHICAGO, Feb 26 - Dean Foods Co expects earnings for the
fourth quarter ending May 30 to exceed those of the same
year-ago period, Chairman Kenneth Douglas told analysts.
    In the fiscal 1986 fourth quarter the food processor
reported earnings of 40 cts a share.
    Douglas also said the year's sales should exceed 1.4
billion dlrs, up from 1.27 billion dlrs the prior year.
    He repeated an earlier projection that third-quarter
earnings "will probably be off slightly" from last year's 40
cts a share, falling in the range of 34 cts to 36 cts a share.
    Douglas said it was too early to project whether the
anticipated fourth quarter performance would be "enough for us
to exceed the prior year's overall earnings" of 1.53 dlrs a
share.
    In 1988, Douglas said Dean should experience "a 20 pct
improvement in our bottom line from effects of the tax reform
act alone."
    President Howard Dean said in fiscal 1988 the company will
derive  benefits of various dairy and frozen vegetable
acquisitions from Ryan Milk to the Larsen Co.
    Dean also said the company will benefit from its
acquisition in late December of Elgin Blenders Inc, West
Chicago.
    He said the company is a major shareholder of E.B.I. Foods
Ltd, a United Kingdom blender, and has licensing arrangements
in Australia, Canada, Brazil and Japan.
    "It provides ann entry to McDonalds Corp <MCD> we've been
after for years," Douglas told analysts.


.I 5562
.C
wheat;grain;
.W
BONUS WHEAT FLOUR FOR NORTH YEMEN  -- USDA.
    WASHINGTON, Feb 26 - The Commodity Credit Corporation, CCC,
has accepted an export bonus offer to cover the sale of 37,000
long tons of wheat flour to North Yemen, the U.S. Agriculture
Department said.
    The wheat four is for shipment March-May and the bonus
awarded was 119.05 dlrs per tonnes and will be paid in the form
of commodities from the CCC inventory.
    The bonus was awarded to the Pillsbury Company.
    The wheat flour purchases complete the Export Enhancement
Program initiative announced in April, 1986, it said.


.I 5565
.C
copper
.W
MAGMA LOWERS COPPER 0.75 CENT TO 66 CTS.
    NEW YORK, Feb 26 - Magma Copper Co, a subsidiary of Newmont
Mining Corp, said it is cutting its copper cathode price by
0.75 cent to 66 cents a lb, effective immediately.


.I 5566
.C
earn
.W
BROWN-FORMAN <BFDB> SETS STOCK SPLIT, UPS PAYOUT.
    LOUISVILLE, Ky., Feb 26 - Brown-Forman Inc said its board
has approved a three-for-two stock split and a 35 pct increase
in the company cash dividend.
    The company cited its improved earnings outlook and
continued strong cash flow as reasons for raising the dividend.
    Brown-Forman said the split of its Class A and Class B
common shares would be effective March 13.
    The company said directors declared a quarterly cash
dividend on each new share of both classes of 28 cts, payable
April one to holders of record March 20. Prior to the split,
the company had paid 31 cts quarterly.
    Brown-Forman today reported a 37 pct increase in third 
quarter profits to 21.6 mln dlrs, or 1.00 dlr a share, on a
seven pct increase in sales to a record 337 mln dlrs.
    Brown-Forman said nine month profits declined a bit to 66.0
mln dlrs, or 3.07 dlrs a share, from 66.2 mln dlrs, or 3.08
dlrs a share, a year earlier due to a second quarter charge of
37 cts a share for restructuring its beverage operations.
    The company said lower corporate tax rates and the
restructuring "are expected to substantially improve
Brown-Forman's earnings and cash flow in fiscal 1988."


.I 5567
.C
earn
.W
ESQUIRE RADIO AND ELECTRONICS INC <EE> 4TH QTR.
    NEW YORK, Feb 26 -
    Shr profit 15 cts vs profit four cts
    Annual div 72 cts vs 72 cts prior yr
    Net profit 72,000 vs profit 16,000
    Revs 7,075,000 vs 2,330,000
    12 mths
    Shr profit 42 cts vs loss 11 cts
    Net profit 203,000 vs loss 55,000
    Revs 16.1 mln vs 3,971,000
    NOTE: annual dividend payable April 10, 1987, to
stockholders of record on March 27, 1987.


.I 5570
.C
earn
.W
UNITED PRESIDENTIAL CORP <UPCO> 4TH QTR NET.
    KOKOMO, Ind., Feb 26 -
    Shr 39 cts vs 50 cts
    Net 1,545,160 vs 2,188,933
    Revs 25.2 mln vs 19.5 mln
    Year
    Shr 1.53 dlrs vs 1.21 dlrs
    Net 6,635,318 vs 5,050,044
    Revs 92.2 mln vs 77.4 mln
    NOTE: Results include adjustment of 848,600 dlrs or 20 cts
shr for 1986 year and both 1985 periods from improvement in
results of its universal life business than first estimated.


.I 5572
.C
housing
.W
JANUARY HOUSING SALES DROP, REALTY GROUP SAYS.
    WASHINGTON, Feb 26 - Sales of previously owned homes
dropped 14.5 pct in January to a seasonally adjusted annual
rate of 3.47 mln units, the National Association of Realtors
(NAR) said.
    But the December rate of 4.06 mln units had been the
highest since the record 4.15 mln unit sales rate set in
November 1978, the group said.
    "The drop in January is not surprising considering that a
significant portion of December's near-record pace was made up
of sellers seeking to get favorable capital gains treatment
under the old tax laws," said the NAR's John Tuccillo.


.I 5573
.C
money-supply
.W
******ASSETS OF MONEY MARKET MUTUAL FUNDS ROSE 720.4 MLN DLRS IN LATEST WEEK.
Blah blah blah.

.I 5579
.C
earn
.W
OWENS AND MINOR INC <OBOD> RAISES QTLY DIVIDEND.
    RICHMOND, Va. Feb 26 -
    Qtly div eights cts vs 7.5 cts prior
    Pay March 31
    Record March 13


.I 5580
.C
earn
.W
COMPUTER LANGUAGE RESEARCH IN <CLRI> 4TH QTR.
    CARROLLTON, Texas, Feb 26 -
    Shr loss 22 cts vs loss 18 cts
    Net loss 3,035,000 vs loss 2,516,000
    Revs 20.9 mln vs 19.6 mln
    Qtly div three cts vs three cts prior
    Year
    Shr profit two cts vs profit 34 cts
    Net profit 215,000 vs profit 4,647,000
    Revs 93.4 mln vs 98.7 mln
    NOTE: Dividend payable April one to shareholders of record
March 17.


.I 5581
.C
earn
.W
<CINRAM LTD> 4TH QTR NET.
    Scarborough, Ontario, Feb 26 -
    Shr 45 cts vs 58 cts
    Net 1.1 mln vs 829,000
    Sales 7.9 mln vs 9.4 mln
    Avg shrs 2,332,397 vs 1,428,000
    Year
    Shr 1.22 dlrs vs 1.06 dlrs
    Net 2.9 mln vs 1.5 mln
    Sales 25.7 mln vs 22.2 mln
    Avg shrs 2,332,397 vs 1,428,000


.I 5583
.C
earn
.W
STANDARD TRUSTCO SEES BETTER YEAR.
    Toronto, Feb 26 - Standard Trustco said it expects earnings
in 1987 to increase at least 15 to 20 pct from the 9,140,000
dlrs, or 2.52 dlrs per share, recorded in 1986.
    "Stable interest rates and a growing economy are expected to
provide favorable conditions for further growth in 1987,"
president Brian O'Malley told shareholders at the annual
meeting.
    Standard Trustco previously reported assets of 1.28 billion
dlrs in 1986, up from 1.10 billion dlrs in 1985. Return on
common shareholders' equity was 18.6 pct last year, up from 15
pct in 1985.


.I 5584
.C
earn
.W
HANDY AND HARMAN <HNH> 4TH QTR LOSS.
    NEW YORK, Feb 26 -
    Shr loss 51 cts vs loss three cts
    Net loss 7,041,000 vs loss 467,000
    Rev 138.9 mln vs 131.4 mln
    12 months
    Shr loss 64 cts vs profit 46 cts
    Net loss 8,843,000 vs profit 6,306,0000
    Rev 558.9 mln vs 556.7 mln
    NOTE: Net loss for 4th qtr 1986 includes charge for
restructuring of 2.6 mln dlrs after tax, or 19 cts a share.
    1986 net loss includes after tax special charge of 2.7 mln
dlrs, or 20 cts a share.
   


.I 5585
.C
coffee
.W
ICO PRODUCERS TO PRESENT NEW COFFEE PROPOSAL.
    LONDON, Feb 26 - International Coffee Organization, ICO,
producing countries will present a proposal for reintroducing
export quotas for 12 months from April 1 with a firm
undertaking to try to negotiate up to September 30 any future
quota distribution on a new basis, ICO delegates said.
    Distribution from April 1 would be on an unchanged basis as
in an earlier producer proposal, which includes shortfall
redistributions totalling 1.22 mln bags, they said.
    Resumption of an ICO contact group meeting with consumers,
scheduled for this evening, has been postponed until tomorrow,
delegates said.


.I 5587
.C
acq;ship;
.W
MCLEAN'S <MII> U.S. LINES SETS ASSET TRANSFER.
    CRANFORD, N.J., Feb 26 - McLean Industries Inc's United
States Lines Inc subsidiary said it has agreed in principle to
transfer its South American service by arranging for the
transfer of certain charters and assets to <Crowley Mariotime
Corp>'s American Transport Lines Inc subsidiary.
    U.S. Lines said negotiations on the contract are expected
to be completed within the next week. Terms and conditions of
the contract would be subject to approval of various regulatory
bodies, including the U.S. Bankruptcy Court.


.I 5588
.C
acq
.W
CHEMLAWN <CHEM> RISES ON HOPES FOR HIGHER BIDS.
    By Cal Mankowski, Reuters
    NEW YORK, Feb 26 - ChemLawn Corp <CHEM> could attract a
higher bid than the 27 dlrs per share offered by Waste
Management Inc <WNX>, Wall Street arbitrageurs said.
    Shares of ChemLawn shot up 11-5/8 to 29-3/8 in
over-the-counter- trading with 3.8 mln of the company's 10.1
mln shares changing hands by late afternoon.
    "This company could go for 10 times cash flow or 30 dlrs,
maybe 32 dollars depending on whether there is a competing
bidder," an arbitrageur said. Waste Management's tender offer,
announced before the opening today, expires March 25.
    "This is totally by surprise," said Debra Strohmaier, a
ChemLawn spokeswoman. The company's board held a regularly
scheduled meeting today and was discussing the Waste Management
announcement. She said a statement was expected but it was not
certain when it would be ready. 
    She was unable to say if there had been any prior contact
between Waste Management and ChemLawn officials.
    "I think they will resist it," said Elliott Schlang,
analyst at Prescott, Ball and Turben Inc. "Any company that
doesn't like a surprise attack would."
    Arbitrageurs pointed out it is difficult to resist tender
offers for any and all shares for cash. Schlang said ChemLawn
could try to find a white knight if does not want to be
acquired by Waste Management.
    Analyst Rosemarie Morbelli of Ingalls and Snyder said
ServiceMaster Companies L.P. <SVM> or Rollins Inc <ROL> were
examples of companies that could be interested.
    ChemLawn, with about two mln customers, is the largest U.S.
company involved in application of fertilizers, pesticides and
herbicides on lawns. Waste Management is involved in removal of
wastes.
    Schlang said ChemLawn's customer base could be valuable to
another company that wants to capitalize on a strong
residential and commercial distribution system.
    Both Schlang and Morbelli noted that high growth rates had
catapulted ChemLawn's share price into the mid-30's in 1983 but
the stock languished as the rate of growth slowed.
    Schlang said the company's profits are concentrated in the
fourth quarter. In 1986 ChemLawn earned 1.19 dlrs per share for
the full year, and 2.58 dlrs in the fourth quarter.
    Morbelli noted ChemLawn competes with thousands of
individual entrepreuers who offer lawn and garden care sevice.


.I 5589
.C
sugar
.W
U.S. SUGAR IMPORTS DOWN IN WEEK - USDA.
    WASHINGTON, Feb 26 - Sugar imports subject to the U.S.
sugar import quota during the week ended January 9, the initial
week of the 1987 sugar quota year, totaled 5,988 short tons
versus 46,254 tons the previous week, the Agriculture
Department said.
    The sugar import quota for the 1987 quota year
(January-December) has been set at 1,001,430 short tons
compared with 1,850,000 tons in the 1986 quota year, which was
extended three months to December 31.
    The department said the Customs Service has reported that
weekly and cumulative imports are reported on an actual weight
basis and when final polarizations are received, cumulative
import data are adjusted accordingly.


.I 5590
.C
trade
.W
BRAZIL ANTI-INFLATION PLAN LIMPS TO ANNIVERSARY.
    RIO DE JANEIRO, Feb 26 - Brazil's "Cruzado" anti- inflation
plan, initially hailed at home and abroad as the saviour of the
economy, is limping towards its first anniversary amid soaring
prices, widespread shortages and a foreign payments crisis.
    Announced last February 28 the plan froze prices, fixed the
value of the new Cruzado currency and ended widespread
indexation of the economy in a bid to halt the country's 250
pct inflation rate.
    But within a year the plan has all but collapsed.
    "The situation now is worse than it was. Although there was
inflation, at least the economy worked," a leading bank
economist said.
    The crumbling of the plan has been accompanied by a
dramatic reversal in the foreign trade account. In 1984 and
1985 Brazil's annual trade surpluses had been sufficient to
cover the 12 billion dlrs needed to service its 109 billion dlr
foreign debt.
    For the first nine months of 1986 all seemed to be on
target for a repeat, with monthly surpluses averaging one
billion dlrs. But as exports were diverted and imports
increased to avoid further domestic shortages the trade surplus
plunged to 211 mln dlrs in October and since then has averaged
under 150 mln.


.I 5591
.C
reserves
.W
N.Z. OFFICIAL FOREIGN RESERVES FALL IN JANUARY.
    WELLINGTON, Feb 27 - New Zealand's official foreign
reserves fell to 7.15 billion N.Z. Dlrs in January from 7.20
billion dlrs in December and compared with 3.03 billion a year
ago period, the Reserve Bank said in its weekly statistical
bulletin.


.I 5592
.C
ship
.W
AGENCY REPORTS 39 SHIPS WAITING AT PANAMA CANAL.
    WASHINGTON, Feb 26 - The Panama Canal Commission, a U.S.
government agency, said in its daily operations report that
there was a backlog of 39 ships waiting to enter the canal
early today. Over the next two days it expects --              
             2/26  2/27
                       Due: 27    35
      Scheduled to Transit: 35    41
           End-Day Backlog: 31    25
    Average waiting time tomorrow --
         Super Tankers  Regular Vessels
 North End:  13 hrs      15 hrs
 South End:   4 hrs      26 hrs


.I 5593
.C
earn
.W
AMERICA FIRST MORTGAGE SETS SPECIAL PAYOUT.
    OMAHA, Neb., Feb 26 - <America First Federally Guaranteed
Mortgage Fund Two> said it is making a special distribution of
71.6 cts per exchangeable unit, which includes 67.62 cts from
return on capital and 3.98 cts from income gains.


.I 5596
.C
earn
.W
EMHART CORP <EMH> QTLY DIVIDEND.
    FARMINGTON, Conn., FEb 26 -
    Qtly div 35 cts vs 35 cts prior
    Payable March 31
    Record March nine



.I 5599
.C
earn
.W
AM INTERNATIONAL <AM> CITES STRONG PROSPECTS.
    CHICAGO, Feb 26 - AM International Inc, reporting an
operating loss for the January 31 second quarter, said
prospects for the balance of the fiscal year remain good.
    It said orders at its Harris Graphics subsidiary, acquired
in June 1986, "continue to run at a strong pace." For the six
months, orders rose 35 pct over the corresponding prior-year
period, or on an annualized basis are running at about 630 mln
dlrs.
    The backlog at Harris is up 30 pct from the beginning of
the fiscal year, AM said.
    AM International said its old division are expected to
benefit from recent new product introductions and the decline
in the value of the dollar.
    "Research, development and engineering expenditures in
fiscal 1987 will be in the 45-50 mln dlr range, and the company
said it has allocated another 30-40 mln dlrs for capital
expenditures.
    Earlier AM reported a fourth quarter operating loss of two
cts a share compared to profits of seven cts a share a year
ago. Revenues rose to 291.8 mln dlrs from 151.1 mln dlrs.


.I 5600
.C
grain;corn;
.W
CCC CREDITS FOR HONDURAS SWITCHED TO WHITE CORN.
    WASHINGTON, Feb 26 - The Commodity Credit Corporation (CCC)
announced 1.5 mln dlrs in credit guarantees previously
earmarked to cover sales of dry edible beans to Honduras have
been switched to cover sales of white corn, the U.S.
Agriculture Department said.
    The department said the action reduces coverage for sales
of dry edible beans to 500,000 dlrs and creates the new line of
1.5 mln dlrs for sales of white corn.
    All sales under the credit guarantee line must be
registered  and shipped by September 30, 1987, it said.


.I 5601
.C
money-supply
.W
ASSETS OF U.S. MONEY FUNDS ROSE IN WEEK.
    WASHINGTON, Feb 26 - Assets of money market mutual funds
increased 720.4 mln dlrs in the week ended yesterday to 236.90
billion dlrs, the Investment Company Institute said.
    Assets of 91 institutional funds rose 356 mln dlrs to 66.19
billion dlrs, 198 general purpose funds rose 212.5 mln dlrs to
62.94 billion dlrs and 92 broker-dealer funds rose 151.9 mln
dlrs to 107.77 billion dlrs.


.I 5602
.C
ship
.W
GULF BARGE FREIGHT RATES UP FURTHER ON CALL.
    ST LOUIS, Feb 26 - Gulf barge freight rates firmed again on
the outlook for steady vessel loadings at the Gulf, increasing
the demand for barges to supply those ships, dealers said.
    No barges traded today on the St Louis Merchants' Exchange
call session, versus 29 yesterday.
    Quotes included -
 - Delivery this week on the Illinois River (Joliet) 135 pct of
tariff bid/140 offered, with next week same river (ex Chicago)
quoted the same - both up 2-1/2 percentage points.
 - Next week Mississippi River (St Louis) 120 pct bid/127-1/2
offered - up five points.
 - Next week Ohio River (Owensboro/south) 125 pct bid/132-1/2
offered - up 7-1/2 points.
 - On station Illinois River (south Chicago) 135 pct bid/140
offered - no comparison.
 - March Illinois (ex Chicago) 132-1/2 pct bid/140 offered - up
2-1/2 points.
 - March Ohio River bid at yesterday's traded level of 125 pct,
offered at 132-1/2.
 - March lower Mississippi River (Memphis/Cairo) 112-1/2 pct
bid/120 offered - no comparison.
 - May Illinois River (ex Chicago) 100 pct bid/107-1/2 offered
- no comparison.
 - Sept/Nov Lower Mississippi River (Memphis/Cairo) 137-1/2 pct
bid/145 offered, with Sept/Dec same section 125 pct bid/135
offered - no comparison.


.I 5607
.C
earn
.W
GULF APPLIED <GATS> SELLS UNITS, SEES GAIN.
    HOUSTON, Feb 26 - Gulf Applied Technologies Inc said it
sold its pipeline and terminal operations units for 12.2 mln
dlrs and will record a gain of 2.9 mln dlrs in the first
quarter.
    It added that any federal taxes owed on the transaction
will be offset by operating loss carryovers.


.I 5608
.C
earn
.W
FARMERS GROUP INC <FGRP> 4TH QTR NET.
    LOS ANGELES, Feb 26 -
    Shr 80 cts vs 72 cts
    Net 55,513,000 vs 48,741,000
    Revs 290.9 mln vs 264.2 mln
    Year
    Shr 3.09 dlrs vs 2.72 dlrs
    Net 213,470,000 vs 184,649,000
    Revs 1.12 billion vs 992.9 mln
    Avg shrs 69,127,000 vs 68,004,000


.I 5609
.C
earn
.W
POTOMAC ELECTRIC POWER CO <POM> JAN NET.
    WASHINGTON, Feb 26 -
    Shr 27 cts vs 29 cts
    Net 13,555,000 vs 14,635,000
    Revs 104,606,000 vs 110,311,000
    Avg shrs 47.2 mln vs 47.1 mln
    12 mths
    Shr 4.10 dlrs vs 3.66 dlrs
    Net 226,653,000 vs 186,790,000
    Revs 1.4 billion vs 1.3 billion
    Avg shr 47.1 mln vs 47.1 mln
   
    NOTE: latest 12 mths net includes gain 46 cts per share for
sale of Virginia service territory to Dominion Resources Inc
<D>.


.I 5611
.C
acq
.W
<COFAB INC> BUYS GULFEX FOR UNDISCLOSED AMOUNT.
    HOUSTON, Feb 26 - CoFAB Inc said it acquired <Gulfex Inc>,
a Houston-based fabricator of custom high-pressure process
vessels for the energy and petrochemical industries.
    CoFAB said its group of companies manufacture specialized
cooling and lubricating systems for the oil and gas,
petrochemical, utility, pulp and paper and marine industries.


.I 5612
.C
oilseed;veg-oil;meal-feed;soybean;soy-meal;
.W
U.S. WEEKLY SOYBEAN CRUSH 21,782,929 BUSHELS.
    WASHINGTON, Feb 26 - Reporting members of the National
Soybean Processors Association (NSPA) crushed 21,782,929
bushels of soybeans in the week ended Feb 25 compared with
22,345,718 bushels in the previous week and 16,568,000 in the
year-ago week, the association said.
    It said total crushing capacity for members was 25,873,904
bushels vs 25,873,904 last week and 25,459,238 bushels last
year.
    NSPA also said U.S. soybean meal exports in the week were
117,866 tonnes vs 121,168 tonnes a week ago and compared with
84,250 tonnes in the year-ago week.
    NSPA said the figures include only NSPA member firms.


.I 5614
.C
earn
.W
TULTEX CORP <TTX> SETS QUARTERLY DIVIDEND.
    MARTINSVILLE, Va., Feb 26 - 
    Qtly div eights cts vs eight cts prior
    Pay April one
    Record March 13


.I 5617
.C
earn
.W
ATICO FINANCIAL CORP <ATFC> 4TH QTR NET.
    MIAMI, Fla., Feb 26 -
    Shr 30 cts vs 5.92 dlrs
    Net 1,142,000 vs 16.0 mln
    Revs 10.6 mln vs 24.2 mln
    Year
    Shr 90 cts vs 6.20 dlrs
    Net 3,320,000 vs 16.9 mln
    Revs 45.00 mln vs 26.2 mln
    NOTE: 1986 4th qtr and yr amounts include acquisition of
98.8 pct of common of Atico, formerly Peninsula Federal Savings
and Loan Association, on January 24, 1986.
    1985 4th qtr and yr net include net gain of 15.9 mln dlrs
or 5.86 dlrs per share on exchange of common of Pan America
Banks Inc for common of NCNB Corp purusant to a merger of the
companies.


.I 5618
.C
coffee
.W
ICO EXPORTERS TO MODIFY NEW PROPOSAL.
    LONDON, Feb 26 - International Coffee Organization (ICO)
exporters will modify their new proposal on quota resumption
before presenting it to importers tomorrow, ICO delegates said.
    The change, which will be discussed tonight informally
among producers, follows talks after the formal producer
session with the eight-member producer splinter group and will
affect the proposed quota distribution for 12 months from April
one, they said.
    The proposed share-out would still include shortfall
declarations, they said.


.I 5619
.C
money-supply
.W
******U.S. COMMERCIAL PAPER FALLS 375 MLN DLRS IN FEB 18 WEEK, FED SAYS.
Blah blah blah.

.I 5620
.C
money-supply
.W
******N.Y. BUSINESS LOANS FALL 195 MLN DLRS IN FEB 18 WEEK, FED SAYS.
Blah blah blah.

.I 5621
.C
money-supply
.W
******NEW YORK BANK DISCOUNT WINDOW BORROWINGS 64 MLN DLRS IN FEB 25 WEEK.
Blah blah blah.

.I 5623
.C
money-supply
.W
NEW YORK BUSINESS LOANS FALL 195 MLN DLRS.
    NEW YORK, Feb 26 - Commercial and industrial loans on the
books of the 10 major New York banks, excluding acceptances,
fell 195 mln dlrs to 65.06 billion in the week ended February
18, the Federal Reserve Bank of New York said.
    Including acceptances, loans declined 114 mln dlrs to 65.89
billion.
    Commercial paper outstanding nationally dropped 375 mln
dlrs to 336.63 billion.
    National business loan data are scheduled to be released on
Friday.


.I 5624
.C
money-supply
.W
N.Y. BANK DISCOUNT BORROWINGS 64 MLN DLRS.
    NEW YORK, Feb 26 - The eight major New York City banks had
64 mln dlrs in average borrowings from the Federal Reserve in
the week to Wednesday February 25, a Fed spokesman said.
    The week marked the second half of the two-week bank
statement period that ended on Wednesday. The banks had no
borrowings in the prior week.
    Commenting on the latest week, a Fed spokesman said that
all of the borrowing occurred yesterday and was done by fewer
than half of the banks.
    National data on discount window borrowings are due to be
released at 1630 EST (2130 GMT).



.I 5625
.C
earn
.W
PHILIPPINE LONG DISTANCE <PHI> YEAR NET.
    NEW YORK, Feb 26 -
    Shr primary 95.30 pesos vs 29.71 pesos
    Shr diluted 61.11 pesos vs 18.49 pesos
    Qtly div 1.25 pesos vs 1.25 pesos
    Net 1.9 billion vs 779 mln
    Revs 6.1 billion vs 4.7 billion
    NOTE: Full name Philippine Long Distance Telephone Co.
    Figures quoted in Philippine Pesos.
    Dividend payable April 15 to holders or record March 13.
Exchange rate on day of dividend declaration was 20.792 pesos
per dollar.


.I 5626
.C
earn
.W
LIBERTY ALL-STAR EQUITY FUND INITIAL DIV.
    WESTPORT, Conn., FEb 26 -
    Qtly div five cts vs N.A.
    Payable April two
    Record March 20
    NOTE:1986 dividend includes special two cts per share for
the period beginning with the fund's commencement of operations
on Novebmer three through December 31, 1986.


.I 5628
.C
earn
.W
COMBUSTION ENGINEERING INC <CSP> REGULAR DIV.
    STAMFORD, Conn., Feb 26 -
    Qtly div 25 cts vs 25 cts prior
    Pay April 30
    Record April 16


.I 5629
.C
earn
.W
TONKA CORP <TKA> RAISES DIVIDEND.
    MINNETONKA, MINN., Feb 26 -
    Qtly div two cts vs 1.7 cts
    Pay March 26
    Record March 12


.I 5630
.C
earn
.W
BDM INTERNATIONAL <BDM> INCREASES QTRLY DIVS.
    MCLEAN, Va., Feb 26 -
    Annual div Class A 14 cts vs 12 cts prior
    Annual div Class B 12.1 cts vs 10.4 cts prior
    Payable April one
    Record March 20
    NOTE: full name is BDM International Inc.


.I 5632
.C
earn
.W
SYSTEMATICS INC <SYST> REGULAR PAYOUT.
    LITTLE ROCK, Ark., Feb 26 -
    Qtly div three cts vs three cts prior
    Pay March 13
    Record February 27


.I 5635
.C
money-supply
.W
******U.S. M-1 MONEY SUPPLY RISES 2.1 BILLION DLRS IN FEB 16 WEEK, FED SAYS.
Blah blah blah.

.I 5636
.C
earn
.W
<IVACO INC> YEAR NET.
    MONTREAL, Feb 26-
    Shr 1.11 dlrs vs 1.04 dlrs
    Net 44,092,000 vs 35,145,000
    Revs 1.94 billion vs 1.34 billion
    Note: 1986 results include extraordinary gain of 1,035,000
dlrs or six cts a share from secondary share offering of Canron
unit.


.I 5637
.C
money-supply
.W
******U.S. BANK DISCOUNT BORROWINGS AVERAGE 310 MLN DLRS IN FEB 25 WEEK, FED SAYS.
Blah blah blah.

.I 5639
.C
acq
.W
INVESTMENT FIRMS CUT CYCLOPS <CYL> STAKE.
    WASHINGTON, Feb 26 - A group of affiliated New York
investment firms said they lowered their stake in Cyclops Corp
to 260,500 shares, or 6.4 pct of the total outstanding common
stock, from 370,500 shares, or 9.2 pct.
    In a filing with the Securities and Exchange Commission,
the group, led by Mutual Shares Corp, said it sold 110,000
Cyclops common shares on Feb 17 and 19 for 10.0 mln dlrs.


.I 5640
.C
oilseed;wheat;grain;corn;soybean;sorghum;oat;
.W
ASCS TERMINAL MARKET VALUES FOR PIK GRAIN.
    KANSAS CITY, Feb 26 - The Agricultural Stabilization and
Conservation Service (ASCS) has established these unit values
for commodities offered from government stocks through
redemption of Commodity Credit Corporation commodity
certificates, effective through the next business day.
    Price per bushel is in U.S. dollars. Sorghum is priced per
CWT, corn yellow grade only.
     WHEAT     HRW   HRS    SRW   SWW   DURUM
 Chicago       --    3.04   2.98  --    --
 Ill. Track    --    --     3.16  --    --
 Toledo        --    3.04   2.98  2.90  --
 Memphis       --    --     3.05  --    --
 Peoria        --    --     3.11  --    --
 Denver        2.62  2.63  --    --    --
 Evansville    --    --    2.99  --    --
 Cincinnati    --    --    2.96  --    --
 Minneapolis   2.65  2.71  --    --    3.70
 Baltimore/
 Norf./Phil.   --    --    3.06  2.98  --
 Kansas City   2.87  --    3.17  --    --
 St. Louis     3.03  --    3.03  --    --
 Amarillo/
 Lubbock       2.64  --    --    --    --
               HRW   HRS   SRW   SWW   DURUM
 Lou. Gulf     --    --    3.16  --    --
 Portland/
 Seattle       3.07  3.08  --    3.10  3.70
 Stockton      2.78  --    --    --    --
 L.A.          3.23  --    --    --    4.05
 Duluth        2.65  2.71  --    --    3.70
 Tex. Gulf     3.10  --    3.16  --    --

             CORN  BRLY  OATS  RYE   SOYB  SORG
 Chicago     1.47  --    --    --    4.81  2.49
 Ill. Track  1.49  2.04  --    --    4.85  2.52
 Toledo      1.41  2.04  1.50  --    4.78  2.39
 Memphis     1.59  1.95  1.71  --    4.90  2.86
 Peoria      1.51  ---   --    --    4.80  2.60
 Denver      1.56  1.56  --    --    --    2.54
 Evnsvlle    1.54  2.04  1.50  2.17  4.90  2.61
 Cinci       1.52  2.04  1.50  2.17  4.85  2.58
 Mpls        1.34  1.75  1.50  1.85  4.68  --
 Balt/Nor/
 Phil        1.70  1.80  --    --    4.98  3.12
 KC          1.49  1.56  1.64  --    4.76  2.58
 St Lo       1.54  --    1.66  --    4.90  2.91
 Amarlo/
 Lubbck      1.84  1.40  --    --    4.75  2.92
 Lou Gulf    1.73  --    --    --    5.05  3.12
 Port/
 Seattle     1.87  2.10  1.68  --    --    --
 Stockton    2.18  2.23  2.10  --    --    4.00
 LA          2.54  2.50  --    --    --    4.38
 Duluth      1.34  1.75  1.50  1.85  4.68  --
 Tex Gulf    1.73  1.48  1.73  --    5.05  3.12


.I 5641
.C
earn
.W
CORADIAN CORP <CDIN> 4TH QTR NET.
    ALBANY, N.Y., Feb 26 -
    Shr profit three cts vs loss three cts
    Net profit 363,000 vs loss 197,000
    Revs 3,761,000 vs 2,666,000
    Year
    Shr profit one cent vs loss 37 cts
    Net profit 129,000 vs loss 1,715,000
    Revs 11.4 mln vs 10.9 mln
    Avg shrs 10,694,081 vs 4,673,253


.I 5642
.C
money-supply
.W
FEDERAL RESERVE WEEKLY REPORT 1 - FEB 26.
    Two weeks ended Feb 25      daily avgs-mlns
 Net free reserves.............644 vs.....1,337
 Bank borrowings...............680 vs.......425
 Including seasonal loans.......81 vs........56
 Including extended loans......299 vs.......265
 Excess reserves.............1,025 vs.....1,497
 Required reserves (adj)....55,250 vs....55,366
 Required reserves............N.A. vs......N.A.
 Total reserves...............N.A. vs......N.A.
 Non-borrowed reserves........N.A. vs......N.A.
 Monetary base................N.A. vs......N.A.
                         
     Two weeks ended Feb 25                   
 Total vault cash.............N.A. vs......N.A.
 Inc cash equal to req res....N.A. vs......N.A.
     One week ended Feb 25      Daily avgs-Mlns
 Bank borrowings...............614 down.....131
 Including seasonal loans.......88 up........14
 Including extended loans......304 up........10
 Float.........................511 down.....320
 Balances/adjustments........2,101 down......67
 Currency..................206,490 down.....519
 Treasury deposits...........4,208 down......63



.I 5643
.C
money-supply
.W
N.Z. TRADING BANK DEPOSIT GROWTH RISES SLIGHTLY.
    WELLINGTON, Feb 27 - New Zealand's trading bank seasonally
adjusted deposit growth rose 2.6 pct in January compared with a
rise of 9.4 pct in December, the Reserve Bank said.
    Year-on-year total deposits rose 30.6 pct compared with a
26.3 pct increase in the December year and 34.5 pct rise a year
ago period, it said in its weekly statistical release.
    Total deposits rose to 17.18 billion N.Z. Dlrs in January
compared with 16.74 billion in December and 13.16 billion in
January 1986.


.I 5644
.C
money-supply
.W
FEDERAL RESERVE MONEY SUPPLY REPORT - FEB 26.
    One Week Ended Feb 16
 M-1.........................736.7 up.......2.1
 Previous week revised to....734.6 From...734.2
 Avge  4 Weeks (Vs Week Ago).735.0 Vs.....733.5
 Avge 13 Weeks (Vs week Ago).731.8 Vs.....729.8
 Monthly aggregates (Adjusted avgs in billions)
 M-1 (Jan vs Dec)............737.6 Vs.....730.5
 M-2 (Jan vs Dec)..........2,820.1 Vs...2,798.4
 M-3 (Jan vs Dec)..........3,513.6 Vs...3,488.1
 L...(Dec vs Nov)..........4,141.5 Vs...4,110.5
 Domestic Debt(Dec vs Nov).7,604.4 Vs...7,519.8



.I 5645
.C
money-supply
.W
FEDERAL RESERVE WEEKLY REPORT 3 - FEB 26.
    One week ended Feb 25       daily avgs-mlns
 Govts bought outright....193,374 down....1,342
 Govts repurchases............nil unch.........
 Agencies bought outright...7,719 unch.........
 Agencies repurchases.........nil unch.........
 Acceptances repurchases......nil unch.........
 Matched sales..............4,920 vs......3,788
 Including sales with cust..4,369 vs......3,788
 Other Fed assets..........16,806 down....1,161
 Other Fed liabilities......6,421 up........178
 Other deposits with Fed......399 up.........26



.I 5646
.C
money-supply
.W
FEDERAL RESERVE WEEKLY REPORT 4 - FEB 26.
    One week ended Feb 25       Daily avgs-Mlns
 Foreign deposits.............219 down.......29
 Gold stock................11,059 unch.........
 Custody holdings.........168,348 down......366
 Federal funds rate avg......5.95 vs.......6.21
    Factors on Wednesday, Feb 25
 Bank borrowings............1,239 vs........446
 Including extended credits....92 vs........298
 Matched sales..............8,250 vs......2,998
 Including sales w/cust.....4,392 vs......2,998
 Float........................935 vs......2,125
                                               


.I 5647
.C
cotton
.W
WORLD MARKET PRICE FOR UPLAND COTTON - USDA.
    WASHINGTON, Feb 26 - The U.S. Agriculture Department
announced the prevailing world market price, adjusted to U.S.
quality and location, for Strict Low Middling, 1-1/16 inch
upland cotton at 52.69 cts per lb, to be in effect through
midnight March 5.
    The adjusted world price is at average U.S. producing
locations (near Lubbock, Texas) and will be further adjusted
for other qualities and locations. The price will be used in
determining First Handler Cotton Certificate payment rates.
    Based on data for the week ended February 26, the adjusted
world price for upland cotton is determined as follows, in cts
per lb --
 Northern European Price               66.32
      Adjustments --
 Average U.S. spot mkt location 10.42 
 SLM 1-1/16 inch cotton          1.80 
 Average U.S. location           0.53
 Sum of adjustments              12.75
 Adjusted world price            53.57


.I 5648
.C
sugar
.W
SUGAR QUOTA IMPORTS DETAILED -- USDA.
    WASHINGTON, Feb 26 - The U.S. Agriculture Department said
cumulative sugar imports from individual countries during the
1987 quota year, which began January 1, 1987 and ends December
31, 1987 were as follows, with quota allocations for the quota
year in short tons, raw value --
            CUMULATIVE     QUOTA 1987
              IMPORTS     ALLOCATIONS
 ARGENTINA        nil          39,130
 AUSTRALIA        nil          75,530
 BARBADOS         nil           7,500
 BELIZE           nil          10,010
 BOLIVIA          nil           7,500
 BRAZIL           nil         131,950
 CANADA           nil          18,876
                           QUOTA 1987
              IMPORTS     ALLOCATIONS
 COLOMBIA         103          21,840
 CONGO            nil           7,599
 COSTA RICA       nil          17,583
 IVORY COAST      nil           7,500
 DOM REP        5,848         160,160
 ECUADOR          nil          10,010
 EL SALVADOR      nil          26,019.8
 FIJI             nil          25,190
 GABON            nil           7,500
                           QUOTA 1987
              IMPORTS     ALLOCATIONS
 GUATEMALA        nil          43,680
 GUYANA           nil          10,920
 HAITI            nil           7,500
 HONDURAS         nil          15,917.2
 INDIA            nil           7,500
 JAMAICA          nil          10,010
 MADAGASCAR       nil           7,500
 MALAWI           nil           9,,100
                           QUOTA 1987
               IMPORTS    ALLOCATIONS
 MAURITIUS         nil         10,920
 MEXICO             37          7,500
 MOZAMBIQUE        nil         11,830
 PANAMA            nil         26,390
 PAPUA NEW GUINEA  nil          7,500
 PARAGUAY          nil          7,500
 PERU              nil         37,310
 PHILIPPINES       nil        143,780
 ST.CHRISTOPHER-
 NEVIS             nil          7,500
                          QUOTA 1987
                IMPORTS  ALLOCATIONS
 SWAZILAND          nil         14,560
 TAIWAN             nil         10,920
 THAILAND           nil         12,740
 TRINIDAD-TOBAGO    nil          7,500
 URUGUAY            nil          7,500
 ZIMBABWE           nil         10,920



.I 5649
.C
ship;grain;
.W
GRAIN SHIPS LOADING AT PORTLAND.
    PORTLAND, Feb 26 - There were seven grain ships loading and
six ships were waiting to load at Portland, according to the
Portland Merchants Exchange.


.I 5651
.C
earn
.W
MERIDIAN BANCORP INC <MRDN> SETS REGULAR PAYOUT.
    READING, Penn., Feb 26 -
    Qtly div 25 cts vs 25 cts prior
    Pay April one
    Record March 15


.I 5652
.C
money-supply
.W
U.S. BANK DISCOUNT BORROWINGS 310 MLN DLRS.
    NEW YORK, Feb 26 - U.S. bank discount window borrowings
less extended credits averaged 310 mln dlrs in the week to
Wednesday February 25, the Federal Reserve said.
    The Fed said that overall borrowings in the week fell 131
mln dlrs to 614 mln dlrs, with extended credits up 10 mln dlrs
at 304 mln dlrs. The week was the second half of a two-week
statement period. Net borrowings in the prior week averaged 451
mln dlrs.
    Commenting on the two-week statement period ended February
25, the Fed said that banks had average net free reserves of
644 mln dlrs a day, down from 1.34 billion two weeks earlier.
    A Federal Reserve spokesman told a press briefing that
there were no large single day net misses in the Fed's reserve
projections in the week to Wednesday.
    He said that natural float had been "acting a bit
strangely" for this time of year, noting that there had been
poor weather during the latest week.
    The spokesman said that natural float ranged from under 500
mln dlrs on Friday, for which he could give no reason, to
nearly one billion dlrs on both Thursday and Wednesday.
    The Fed spokeman could give no reason for Thursday's high
float, but he said that about 750 mln dlrs of Wednesday's
float figure was due to holdover and transportation float at
two widely separated Fed districts.
    For the week as a whole, he said that float related as of
adjustments were "small," adding that they fell to a negative
750 mln dlrs on Tuesday due to a number of corrections for
unrelated cash letter errors in six districts around the
country.
    The spokesman said that on both Tuesday and Wednesday, two
different clearing banks had system problems and the securities
and Federal funds wires had to be held open until about 2000 or
2100 EST on both days.
    However, he said that both problems were cleared up during
both afternoons and there was no evidence of any reserve
impact.
    During the week ended Wednesday, 45 pct of net discount
window borrowings were made by the smallest banks, with 30 pct
by the 14 large money center banks and 25 pct by large regional
institutions.
    On Wednesday, 55 pct of the borrowing was accounted for by
the money center banks, with 30 pct by the large regionals and
15 pct by the smallest banks.
    The Fed spokesman said the banking system had excess
reserves on Thursday, Monday and Tuesday and a deficit on
Friday and Wedndsday. That produced a small daily average
deficit for the week as a whole.
    For the two-week period, he said there were relatively high
excess reserves on a daily avearge, almost all of which were at
the smallest banks.


.I 5653
.C
acq
.W
AMERICAN EXPRESS <AXP> SEEN IN POSSIBLE SPINNOFF.
    By Patti Domm,
    New York, Feb 26 - American Express Co remained silent on
market rumors it would spinoff all or part of its Shearson
Lehman Brothers Inc, but some analysts said the company may be
considering such a move because it is unhappy with the market
value of its stock.
    American Express stock got a lift from the rumor, as the
market calculated a partially public Shearson may command a
good market value, thereby boosting the total value of American
Express. The rumor also was accompanied by talk the financial
services firm would split its stock and boost its dividend.
    American Express closed on the New York Stock Exchange at
72-5/8, up 4-1/8 on heavy volume.
    American Express would not comment on the rumors or its
stock activity.
    Analysts said comments by the company at an analysts'
meeting Tuesday helped fuel the rumors as did an announcement
yesterday of management changes.
    At the meeting, company officials said American Express
stock is undervalued and does not fully reflect the performance
of Shearson, according to analysts.
    Yesterday, Shearson said it was elevating its chief
operating officer, Jeffery Lane, to the added position of
president, which had been vacant. It also created four new
positions for chairmen of its operating divisions.
    Analysts speculated a partial spinoff would make most
sense, contrary to one variation on market rumors of a total
spinoff.
    Some analysts, however, disagreed that any spinoff of
Shearson would be good since it is a strong profit center for
American Express, contributing about 20 pct of earnings last
year.
    "I think it is highly unlikely that American Express is
going to sell shearson," said Perrin Long of Lipper Analytical.
He questioned what would be a better investment than "a very
profitable securities firm."
    Several analysts said American Express is not in need of
cash, which might be the only reason to sell a part of a strong
asset.
    But others believe the company could very well of
considered the option of spinning out part of Shearson, and one
rumor suggests selling about 20 pct of it in the market.
    Larry Eckenfelder of Prudential-Bache Securities said he
believes American Express could have considered a partial
spinoff in the past.
    "Shearson being as profitable as it is would have fetched a
big premium in the market place. Shearson's book value is in
the 1.4 mln dlr range. Shearson in the market place would
probably be worth three to 3.5 bilion dlrs in terms of market
capitalization," said Eckenfelder.
    Some analysts said American Express could use capital since
it plans to expand globally.
    "They have enormous internal growth plans that takes
capital. You want your stock to reflect realistic valuations to
enhance your ability to make all kinds of endeavors down the
road," said E.F. Hutton Group analyst Michael Lewis.
    "They've outlined the fact that they're investing heavily
in the future, which goes heavily into the international
arena," said Lewis. "...That does not preclude acquisitions and
divestitures along the way," he said.
    Lewis said if American Express reduced its exposure to the
brokerage business by selling part of shearson, its stock might
better reflect other assets, such as the travel related
services business.
    "It could find its true water mark with a lesser exposure
to brokerage. The value of the other components could command a
higher multiple because they constitute a higher percentage of
the total operating earnings of the company," he said.
     Lewis said Shearson contributed 316 mln in after-tax
operating earnings, up from about 200 mln dlrs in 1985.
   


.I 5654
.C
money-supply
.W
U.S. M-1 MONEY SUPPLY ROSE 2.1 BILLION DLRS.
    NEW YORK, Feb 26 - U.S. M-1 money supply rose 2.1 billion
dlrs to a seasonally adjusted 736.7 billion dlrs in the
February 16 week, the Federal Reserve said.
    The previous week's M-1 level was revised to 734.6 billion
dlrs from 734.2 billion dlrs, while the four-week moving
average of M-1 rose to 735.0 billion dlrs from 733.5 billion.
    Economists polled by Reuters said that M-1 should be
anywhere from down four billion dlrs to up 2.3 billion dlrs.
The average forecast called for a 300 mln dlr M-1 rise.


.I 5656
.C
earn
.W
LIBERTY ALL-STAR <USA> SETS INITIAL PAYOUT.
    WESTPORT, Conn., Feb 26 - Liberty All-Star Equity Fund said
it declared an initial dividend of five cts per share, payable
April two to shareholders of record March 20.
    It said the dividend includes a quarterly dividend of three
cts a share and a special payout of two cts a share, which
covers the period from November three, 1986, when the fund
began operations, to December 31, 1986.
    The fund said its quarterly dividend rate may fluctuate in
the future.


.I 5664
.C
livestock;carcass;
.W
CHINESE PORK OUTPUT SEEN LOWER -- USDA.
    WASHINGTON, Feb 26 - High feed prices will cause the
Chinese to reduce hog herd growth and pork production this
year, the U.S. Agriculture Department said.
    In its World Production and Trade Report, the department
said hog numbers at the start of 1987 were estimated at 331.6
mln head, up slightly from 1986, and 10 mln head above earlier
projections for 1987.
    Pork production in 1986 was up 4.2 pct to 17.25 mln tonnes,
slightly below earlier estimates, it said.
    For 1987, production is projected to fall to 17.05 mln
tonnes.
    Feed prices at the end of January were reported 35 to 40
pct above year-ago levels, the department said.


.I 5666
.C
earn
.W
IVACO SEES MINIMAL FIRST QUARTER EARNINGS.
    MONTREAL, Feb 26 - (Ivaco Inc) said price pressure on steel
products, particularly in the U.S., and the recent increase in
the value of the Canadian dollar is expected to result in
"minimal" first quarter earnings.
    It said subsequent quarters should show substantial
improvement from first quarter levels but 1987 earnings will
not reach 1986 levels as long as those conditions continue.
     Ivaco earlier reported 1986 profit rose to 44.1 mln dlrs,
after a one mln dlr extraordinary gain, from 35.1 mln dlrs the
previous year. It said demand for the company's products are
continuing at high levels and sales are expected to show
further growth. Revenues last year rose to 1.94 billion dlrs
from 1.34 billion dlrs in 1985.       


.I 5667
.C
grain
.W
U.S. GRAIN CARLOADINGS FALL IN WEEK.
    WASHINGTON, Feb 26 - U.S. grain carloadings totaled 26,108
cars in the week ended February 21, down 2.2 pct from the
previous week but 22.8 pct above the corresponding week a year
ago, the Association of American Railroads reported.
    Grain mill product loadings in the week totalled 11,382
cars, down 1.8 pct from the previous week but 7.6 pct above the
same week a year earlier, the association said.


.I 5668
.C
acq
.W
HONG KONG FIRM UPS WRATHER<WCO> STAKE TO 11 PCT.
    WASHINGTON, Feb 26 - Industrial Equity (Pacific) Ltd, a
Hong Kong investment firm, said it raised its stake in Wrather
Corp to 816,000 shares, or 11.3 pct of the total outstanding
common stock, from 453,300 shares, or 6.3 pct.
    In a filing with the Securities and Exchange Commission,
Industrial Equity, which is principally owned by Brierley
Investments Ltd, a publicly held New Zealand company, said it
bought 362,700 Wrather common shares between Feb 13 and 24 for
6.6 mln dlrs.
    When it first disclosed its stake in Wrather earlier this
month, it said it bought the stock for investment purposes.


.I 5669
.C
earn
.W
COLECO INDUSTRIES INC <CLO> 4TH QTR.
    WEST HARTFORD, Conn., FEb 26 -
    Shr loss 6.48 DLS VS PROFIT 23 CTS
    Net loss 110.6 mln vs profit 4.1 mln
    Revs 74.0 mln vs 152.0 mln
    Year
    Shr loss 6.52 dlrs vs profit 3.87 dlrs
    net loss 111.2 mln vs profit 64.2 mln
    Revs 501.0 mln vs 776.0 mln


.I 5670
.C
crude
.W
DIAMOND SHAMROCK (DIA) CUTS CRUDE PRICES.
    NEW YORK, FEB 26 - Diamond Shamrock Corp said that
effective today it had cut its contract prices for crude oil by
1.50 dlrs a barrel.
    The reduction brings its posted price for West Texas
Intermediate to 16.00 dlrs a barrel, the copany said.
    "The price reduction today was made in the light of falling
oil product prices and a weak crude oil market," a company
spokeswoman said.
    Diamond is the latest in a line of U.S. oil companies that
have cut its contract, or posted, prices over the last two days
citing weak oil markets.


.I 5671
.C
acq
.W
LIEBERT CORP <LIEB> APPROVES MERGER.
    COLUMBUS, Ohio, Feb 26 - Liebert Corp said its shareholders
approved the merger of a wholly-owned subsidiary of Emerson
Electric Co <EMR>.
    Under the terms of the merger, each Liebert shareholder
will receive .3322 shares of Emerson stock for each Liebert
share.


.I 5672
.C
earn
.W
******NORTHERN TELECOM PROPOSES TWO-FOR-ONE STOCK SPLIT.
Blah blah blah.

.I 5673
.C
earn
.W
COLECO INDUSTRIES <CLC> SEES PROFIT IN 1987.
    WEST HARTFORD, Conn., FEb 26 - Coleco Industries Inc said
it expects to return to profitability in 1987.
    Earlier, Coleco reported a net loss of 111.2 mln dlrs for
the year ended December 31 compared to a profit of 64.2 mln
dlrs in the year earlier.
    In a prepared statement, the company said the dramatic
swing in operating results was due primarily to the steep
decline in sales of Cabbage Patch Kids products from 600 mln
dlrs to 230 mln dlrs.
    Coleco said it changed from a single product company to a
more diversified organization through four major acquisitions
last year.
    Products from the new acquisitions and other new product
introductions are expected to enable it to return to
profitability, it said.
    At the annual Toy Fair earlier this month, vice president
Morton Handel said analysts' 1987 projected earnings of 90 cts
a share on sales of 600 mln dlrs are reasonable.
   


.I 5675
.C
money-supply
.W
FEDERAL RESERVE WEEKLY REPORT 1 - FEB 26.
    Two weeks ended Feb 25      daily avgs-mlns
 Net free reserves.............644 vs.....1,337
 Bank borrowings...............680 vs.......425
 Including seasonal loans.......81 vs........56
 Including extended loans......299 vs.......265
 Excess reserves.............1,025 vs.....1,497
 Required reserves (adj)....55,250 vs....55,366
 Required reserves..........55,513 vs....56,208
 Total reserves.............56,538 vs....57,705
 Non-borrowed reserves......55,859 vs....57,281
 Monetary base.............244,199 vs...244,925
                         


.I 5676
.C
money-supply
.W
FEDERAL RESERVE WEEKLY REPORT 2 - FEB 26.
     Two weeks ended Feb 25                    
 Total vault cash...........25,237 vs....27,327
 Inc cash equal to req res..22,834 vs....24,680
     One week ended Feb 25      Daily avgs-Mlns
 Bank borrowings...............614 down.....131
 Including seasonal loans.......88 up........14
 Including extended loans......304 up........10
 Float.........................511 down.....320
 Balances/adjustments........2,101 down......67
 Currency..................206,490 down.....519
 Treasury deposits...........4,208 down......63



.I 5677
.C
acq
.W
GULF APPLIED TECHNOLOGIES <GATS> SELLS UNITS.
    HOUSTON, Feb 26 - Gulf Applied Technologies Inc said it
sold its subsidiaries engaged in pipeline and terminal
operations for 12.2 mln dlrs.
    The company said the sale is subject to certain post
closing adjustments, which it did not explain.


.I 5678
.C
acq
.W
INVESTMENT GROUP RAISES ROBESON <RBSN> STAKE.
    WASHINGTON, Feb 26 - A group of affiliated Miami-based
investment firms led by Fundamental Management Corp said it
raised its stake in Robeson Industries Corp to 238,000 shares,
or 14.6 pct of the total, from 205,000 or 12.8 pct.
    In a filing with the Securities and Exchange Commission,
the group said it bought 32,800 Robeson common shares between
Jan 26 and Feb 9 for 175,691 dlrs.
    The group said it may buy more shares and plans to study
Robeson's operations. Afterwards it may recommend that
management make changes in its operations. Fundamental
Management Chairman Carl Singer was recently elected to the
Robeson board.


.I 5679
.C
grain
.W
GAO LIKELY TO SHOW CERTS MORE COSTLY THAN CASH.
    WASHINGTON, Feb 26 - A study on grain certificates due out
shortly from the Government Accounting Office (GAO) could show
that certificates cost the government 10 to 15 pct more than
cash outlays, administration and industry sources said.
    Analysis that the GAO has obtained from the Agriculture
Department and the Office of Management and Budget suggests
that certificates cost more than cash payments, a GAO official
told Reuters.
    GAO is preparing the certificate study at the specific
request of Sen. Jesse Helms (R-N.C.), former chairman of the
senate agriculture committee.
    The report, which will focus on the cost of certificates
compared to cash, is scheduled to be released in mid March.
    The cost of certificates, said the GAO source, depends on
the program's impact on the USDA loan program.
    If GAO determines that certificates encourage more loan
entries or cause more loan forfeitures, then the net cost of
the program would go up. However, if it is determined that
certificates have caused the government grain stockpile to
decrease, the cost effect of certificates would be less.
    GAO will not likely suggest whether the certificates
program should be slowed or expanded, the GAO official said.
    But a negative report on certificates "will fuel the fire
against certificates and weigh heavily on at least an increase
in the certificate program," an agricultural consultant said.
    The OMB is said to be against any expansion of the program,
while USDA remains firmly committed to it.


.I 5681
.C
earn
.W
DAHLBERG INC <DAHL> 4TH QTR NET.
    GOLDEN VALLEY, MINN., Feb 26 -
    Shr profit 10 cts vs loss seven cts
    Net profit 286,870 vs loss 156,124
    Revs 10.0 mln vs 7,577,207
    Year
    Shr profit five cts vs profit 42 cts
    Net profit 160,109 vs profit 906,034
    Revs 38.1 mln vs 31.2 mln
    Avg shrs 2.9 mln vs 2.2 mln
    NOTE: 1986 year includes 53 weeks.


.I 5682
.C
earn
.W
CITY NATIONAL CORP <CTYN> RAISES DIVIDEND.
    BEVERLY HILLS, Calif., Feb 26 -
    Shr 16 cts vs 13 cts
    Pay April 15
    Record March 31


.I 5683
.C
earn
.W
<PAGE PETROLEUM LTD> YEAR LOSS.
    CALGARY, Alberta, Feb 26 -
    Shr loss 1.98 dlrs vs loss 5.24 dlrs
    Net loss 23.3 mln vs loss 44.8 mln
    Revs 13.6 mln vs 29.6 mln
    Note: 1986 net includes nine mln dlr extraordinary loss for
oil and gas writedowns and unrealized foreign exchange losses
vs yr-ago loss of 32.5 mln dlrs.


.I 5685
.C
earn
.W
IDB COMMUNICATIONS GROUP INC <IDBX> YEAR NET.
    LOS ANGELES, Feb 26 - Period ended December 31.
    Shr 25 cts vs 20 cts
    Net 801,000 vs 703,000
    Revs 6,318,000 vs 3,926,000


.I 5686
.C
earn
.W
ARMOR ALL PRODUCTS CORP <ARMR> QUARTERLY DIV.
    SAN FRANCISCO, Feb 26 -
    Qtly div ten cts vs ten cts
    Pay April 1
    Record March 9


.I 5687
.C
crude
.W
OPEC MAY HAVE TO MEET TO FIRM PRICES - ANALYSTS.
    BY TED D'AFFLISIO, Reuters
    NEW YORK, Feb 26 - OPEC may be forced to meet before a
scheduled June session to readdress its production cutting
agreement if the organization wants to halt the current slide
in oil prices, oil industry analysts said.
    "The movement to higher oil prices was never to be as easy
as OPEC thought. They may need an emergency meeting to sort out
the problems," said Daniel Yergin, director of Cambridge Energy
Research Associates, CERA.
    Analysts and oil industry sources said the problem OPEC
faces is excess oil supply in world oil markets.
    "OPEC's problem is not a price problem but a production
issue and must be addressed in that way," said Paul Mlotok, oil
analyst with Salomon Brothers Inc.
    He said the market's earlier optimism about OPEC and its
ability to keep production under control have given way to a
pessimistic outlook that the organization must address soon if
it wishes to regain the initiative in oil prices.
    But some other analysts were uncertain that even an
emergency meeting would address the problem of OPEC production
above the 15.8 mln bpd quota set last December.
    "OPEC has to learn that in a buyers market you cannot have
deemed quotas, fixed prices and set differentials," said the
regional manager for one of the major oil companies who spoke
on condition that he not be named. "The market is now trying to
teach them that lesson again," he added.
    David T. Mizrahi, editor of Mideast reports, expects OPEC
to meet before June, although not immediately. However, he is
not optimistic that OPEC can address its principal problems.
    "They will not meet now as they try to take advantage of the
winter demand to sell their oil, but in late March and April
when demand slackens," Mizrahi said.
    But Mizrahi said that OPEC is unlikely to do anything more
than reiterate its agreement to keep output at 15.8 mln bpd."
    Analysts said that the next two months will be critical for
OPEC's ability to hold together prices and output.
    "OPEC must hold to its pact for the next six to eight weeks
since buyers will come back into the market then," said Dillard
Spriggs of Petroleum Analysis Ltd in New York.
    But Bijan Moussavar-Rahmani of Harvard University's Energy
and Environment Policy Center said that the demand for OPEC oil
has been rising through the first quarter and this may have
prompted excesses in its production.
    "Demand for their (OPEC) oil is clearly above 15.8 mln bpd
and is probably closer to 17 mln bpd or higher now so what we
are seeing characterized as cheating is OPEC meeting this
demand through current production," he told Reuters in a
telephone interview.


.I 5688
.C
earn
.W
CENERGY <CRG> REPORTS 4TH QTR NET PROFIT.
    DALLAS, Feb 26 - Cenergy Corp reported fourth quarter net
income of 790,000 dlrs or seven cts per share on revenues of
7.7 mln dlrs.
    For the year it reported a net loss of 6.5 mln dlrs or 70
cts per share as a result of writedowns in the book value of
its oil and gas properties in the first two quarters. Revenues
were 37 mln dlrs.
    Following the company's fiscal year ended March 31, 1985,
it changed to a calender year end.
    For the nine months ended Dec 31, 1985, it reported a loss
of 63.4 mln dlrs or 6.54 dlrs per share on revenues of 47.6 mln
dlrs, which it said was a result of noncash writedowns of oil
and gas properties.
    For the year ended March 31, 1985, Cenergy reported net
income of 3,705,000 dlrs or 36 cts per share on revenues of 71
mln dlrs.
    The company said its reserves during the year fell to five
mln barrels from 6.4 mln barrels of oil and to 60.1 bilion
cubic feet of gas from 63.7 BCF. It said these reserves did not
disappear but are available to produce as prices recover.


.I 5689
.C
earn
.W
NORTHERN TELECOM LTD <NT> DECLARES STOCK SPLIT.
    Toronto, Feb 26 -
    Two-for-one stock split
    Pay May 12
    Note: split is subject to approval of shareholders at April
23 annual meeting.
    Company also said it will increase dividend on post-split
shares to six cts from five cts.


.I 5690
.C
earn
.W
TORCHMARK <TMK> AUTHORIZES STOCK REPURCHASE.
    BIRMINGHAM, Ala., Feb 26 - Torchmark Corp said its board
authorized the purchase from time to time of a significant
portion of its 7-3/4 pct convertible subordinated debentures.
As of February 25, it said there were outstanding 150 mln dlrs
of the principal amount of debenures.
    The company also said it plans to redeem the debentures on
June eight.
    It also declared a regular quarterly dividend of 25 cts per
share on its common payable May one to shareholders of record
April 10.


.I 5694
.C
earn
.W
TECHAMERICA GROUP INC <TCH> 4TH QTR LOSS.
    ELWOOD, KAN., Feb 26 -
    Shr loss six cts vs not available
    Net loss 562,231 vs profit 10,253
    Revs 8,871,874 vs 9,549,308
    Year
    Shr loss 60 cts vs loss nine cts
    Net loss 5,058,145 vs loss 766,185
    Revs 34.3 mln vs 35.5 mln
   


.I 5695
.C
earn
.W
WILFRED AMERICAN EDUCATIONAL <WAE> REGULAR DIV.
    NEW YORK, Feb 26 -
    Qtly div three cts vs three cts prior
    Pay April three
    Record March 13


.I 5696
.C
acq
.W
DREXEL OFFICIAL HAS STAKE IN EPSILON DATA <EPSI>.
    WASHINGTON, Feb 26 - A senior official of Drexel Burnham
Lambert Inc and his father told the Securities and Exchange
Commission they have acquired 258,591 shares of Epsilon Data
Management Inc, or 9.4 pct of the total outstanding.
    Kenneth Thomas, senior vice president-investments at
Drexel's Los Angeles office, and his father, retired university
professor C.A. Thomas, said they bought the stake for 2.1 mln
dlrs primarily for investment purposes.
    They said they may buy more stock or sell some or all of
their stake, depending on market conditions, but have no plans
to seek control of the company.


.I 5700
.C
acq
.W
<NOVA> WINS GOVERNMENT OKAY FOR HUSKY <HYO> DEAL.
    CALGARY, Alberta, Feb 26 - Nova, the Canadian company that
owns 56 pct of Husky Oil Ltd, said it received government
approval for a transaction under which <Union Faith Canada
Holding Ltd> would buy a 43 pct stake in Husky.
    Nova said the Minister of Regional and Industrial
Expansion, Michel Cote, ruled that Union Faith's purchase of
the Husky stake would not result in Husky ceding control to a
non-Canadian company. It said this ruling was a key condition
in completing the deal.
    Union Faith is equally owned by <Hutchison Whampoa Ltd> and
<Hong Kong Electric Holdings Ltd>.
    Under the agreement with Union Faith, Husky will become a
private company with Union Faith and Nova each holding 43 pct
of its stock.
    Nine pct of Husky would be owned by relatives of Li
Ka-Shing, chairman of Hutchison, and five pct by the Canadian
Imperial Bank of Commerice.


.I 5703
.C
earn
.W
POTOMAC ELECTRIC POWER CO <POM> JANUARY NET.
    WASHINGTON, Feb 26 -
    Oper shr 27 cts vs 29 cts
    Oper net 13.5 mln vs 14.6 mln
    Revs 104.6 mln vs 110.3 mln
    12 mths
    Oper shr 4.10 dlrs vs 3.66 dlrs
    Oper net 205 mln vs 186.8 mln
    Revs 1.4 billion vs 1.3 billion
    NOTE: 1986 12 mths oper net excludes extraordinary gain of
21.7 mln dlrs or 46 cts per share from sale of Virginia service
territory to Virginia Power.


.I 5705
.C
acq
.W
SUFFIELD FINANCIAL <SSBK> GETS FED APPROVAL.
    SUFFIELD, Conn., Feb 26 - Suffield Financial Corp said the
Federal Reserve Board approved its application to acquire
Coastal Bancorp <CSBK>, Portland, Me.
    Suffield said it still needs the approval of the
superintendent of Maine's banking department.


.I 5706
.C
earn
.W
AFG INDUSTRIES INC <AFG> QUARTERLY DIVIDEND.
    IRVINE, Calif., Feb 26 -
    Qtly div four cts vs four cts
    Pay April 3
    Record March 23


.I 5707
.C
earn
.W
<GSW INC> YEAR NET.
    TORONTO, Feb 26 -
    Oper shr 2.16 dlrs vs 2.07 dlrs
    Oper net 8,037,000 vs 7,710,000
    Revs 136.4 mln vs 133.3 mln
    Note: 1986 net excludes extraordinary gain of 13 mln dlrs
or 3.50 dlrs shr from sale of <Camco Inc> shares vs yr-ago loss
of 4.3 mln dlrs or 1.14 dlrs shr.


.I 5708
.C
earn
.W
SANTA ANITA REALTY <SAR> QUARTERLY DIVIDEND.
    LOS ANGELES, Feb 26 -
    Qtly div 51 cts vs 51 cts
    Pay April 9
    Record March 25
    (Santa Anita Realty Enterprises Inc)


.I 5709
.C
earn
.W
LIQUID AIR CORP <LANA> QUARTERLY DIVIDEND.
    SAN FRANCISCO, Feb 26 -
    Qtly div 40 cts vs 40 cts
    Pay March 31
    Record March 16


.I 5710
.C
earn
.W
(MARSHALL STEEL LTD) YEAR NET.
    MONTREAL, Feb 26 -
    Oper shr five cts vs 36 cts
    Oper net 508,000 vs 3,450,000
    Revs 296.7 mln vs 298.0 mln
    Note: former name Marshall Drummond McCall Inc.
    Results include extraordinary gains of 952,000 dlrs or 11
cts per share in 1986 and 2,569,000 dlrs or 29 cts in 1985 from
income tax reduction.              


.I 5711
.C
earn
.W
MARSHALL STEEL DETAILS GAIN FROM UNIT SALE.
    MONTREAL, Feb 26 - (Marshall Steel Ltd), formerly Marshall
Drummond McCall Inc, said it will report a 17 mln dlr net gain
before taxes this year from the sale of its Drummond McCall
division, which was sold effective January one.                
   


.I 5712
.C
earn
.W
MAYFAIR INDUSTRIES INC <MAYF> 4TH QTR NET.
    NEW YORK, Feb 26 - 
    Oper shr 21 cts vs 18 cts
    Oper net 659,000 vs 523,000
    Revs 7,866,000 vs 5,503,000
    Avg shrs 3,141,217 vs 2,925,294
    12 mths
    Oper shr 70 cts vs 46 cts
    Oper net 2,075,000 vs 1,358,000
    Revs 25.9 mln vs 19.3 mln
    Avg shrs 2,980,247 vs 2,925,294
    Note: Excludes tax gain of 295,000 dlrs for qtr and year.


.I 5719
.C
nat-gas
.W
LNG IMPORTS FROM ALGERIA UNLIKELY IN 1987.
    BY NAILENE CHOU WIEST, Reuters
    NEW YORK, Feb 26 - Liquefied natural gas imports from
Algeria are unlikely to happen in 1987 even though its
economically feasible, U.S. industry analysts sources said.
    Youcef Yousfi, director-general of Sonatrach, the Algerian
state petroleum agency, indicated in a television interview in
Algiers that such imports would be made this year.
    "Contract negotiations, filing with the U.S. government and
the time required to restart mothballed terminals will delay
the import until 1988/1989," Daniel Tulis, a natural gas
analyst with Shearson Lehman Bros. said.
    Sonatrach is currently negotiating with two of its former
customers, Panhandle Eastern <PEL> and Distrigas, a subsidiary
of Cabot Corp <CBT> to resume LNG export, company officials
told Reuters. A third, El Paso Gas, a subsidiary of Burlington
Northern <BNI>, has expressed no interest.
    Industry analysts said some imports of Algerian LNG were
feasible. "On a marginal cost basis, the companies that have
made capital investment to handle LNG import can operate
profitably even in the current price environment,"  Frank
Spadine, an energy economist with Bankers Trust, said.
   Analysts did not forsee a major impact from Algerian imports
on U.S. prices which are currently soft but expected to trend
higher by the end of 1987.
    A decline in gas drilling and the time lag to bring Gulf of
Mexico productions onstream will tighten gas supplies and firm
prices, Shearson's Tulis said.
   In this context, Algerian LNG import would be a source of
supplemental supply to U.S. domestic production, he added.
    Company sources currently in talks with Algeria agree,
saying that Algerian LNG would only serve to meet peak demand.
    Company sources also said that any negotiations with
Algeria would emphasize looser arrangements which would relate
volumes to market requirements and prices to U.S. spot market
values.


.I 5722
.C
gnp;cpi;
.W
SWISS ECONOMY IN EXCELLENT CONDITION, OECD SAYS.
    PARIS, Feb 26 - Switzerland's economy, combining low
unemployment, financial stability and a large external payments
surplus, is in excellent condition and faces a satisfactory
future, the Organisation for Economic Cooperation and
Development, OECD, said.
    This reflected the success of stable and relatively tight
fiscal and monetary policies followed by the government, it
said.
    The OECD, in its annual report on Switzerland, picked out
some signs of a slowdown in activity and a slight pick-up in
inflation this year, but said these gave no cause for concern.
    The study forecast a decline in Gross Domestic Product
growth to 1.75 pct this year from an estimated two pct in 1986
and a small rise in consumer price inflation to 1.25 pct after
last year's sharp fall to 0.75 pct from 3.6 pct in 1985.
    But it said job creation should continue to absorb a modest
increase in the workforce, leaving the unemployment rate
unchanged at around one pct, the lowest in the 24-industrial
nation OECD area.
    Assuming an average exchange rate of 1.71 Swiss francs to
the dollar this year, against 1.69 in the second half of 1986,
the report forecast a 2.75 pct rise in exports and a 3.5 pct
rise in imports this year after rises of 3.25 pct and 6.5 pct
respectively in 1986.
    The faster growth of imports compared with exports this
year and last, reflecting buoyant private consumption, meant
that the contribution of the foreign payments balance to GDP
would shrink in both years.
    But "given Switzerland's large external surplus, there
should be no concern if domestic demand grows faster than
GDP...Which, if only in a small way, would contribute to
improving international balances," the OECD said.
    Real private consumption appeared to have been unusually
buoyant last year, with a 3.25 pct growth rate, after several
years of relative weakness, it noted.
    In 1987 private consumption was expected to slow somewhat
to a 2.25 pct growth rate, but should still outstrip overall
GDP, it added.
    The outlook for investment in plant and machinery remained
bright into 1987, and with capacity use at near record levels
last year there was scope for rationalisation and modernisation
in both the industry and service sectors, it said.
    As a consequence, growth in machinery and equipment
investment is likely to decelerate only slightly this year
after vigorous growth in 1986.
    But the report raised a questionmark over the prospects for
tourism and the banking industry, two major service sector
earners of foreign exchange.
    The long-term appreciation of the Swiss Franc, and the
accelerating deregulation of foreign banking markets, could
lead to a loss of international market share for both, it said.
    Particularly for the banks, "recent developments in
international financial markets give rise to the question
whether the Swiss financial system, which has shown substantial
flexibility in the past, is adapting itself at the speed
required ... To preserve its competitive position," it said.


.I 5723
.C
wheat;grain;
.W
U.S. WHEAT BONUS TO SOVIET CALLED DORMANT.
    WASHINGTON, Feb 26 - The U.S. Agriculture Department is not
actively considering offering subsidized wheat to the Soviet
Union under the export enhancement program (EEP), senior USDA
officials said.
    However, grain trade analysts said the proposal has not
been ruled out and that an offer might be made, though not in
the very near future.
    "The grain companies are trying to get this fired up again,"
an aide to Agriculture Secretary Richard Lyng said. "But there
just isn't much talk about it, informally or formally."
    Most analysts interviewed by Reuters were more confident
than USDA officials that bonus wheat would be offered to the
Soviets, even though U.S. officials did not make such an offer
when they held grain talks with Soviet counterparts earlier
this week.
    But administration and private sources agreed that if the
Reagan administration did decide to offer subsidized wheat to
Moscow, it could take several months.
    "I just don't see any proposal like that sailing through any
interagency process," the aide to Lyng said.
    "An export enhancement offer is not consummated overnight,"
said one former USDA official, who noted that the
administration took three months to decide in favor of selling
China wheat under the subsidy program.
    An official representing a large grain trade company said
deliberations within USDA might be nudged along by members of
Congress, a number of whom urged USDA this week to make a wheat
subsidy offer to the Soviets.
    But Lyng's aide said that during a day-long visit to
Capitol Hill yesterday, House members did not press the
secretary on the subsidy question a single time.
    The administration's interagency trade policy review group,
comprised of subcabinet-level officials, has not been asked to
clear a request to offer Moscow wheat under the EEP, officials
at the U.S. Trade Representative's Office said.
    In their talks this week, the two sides discussed the
administration's previous EEP offer but did not talk about any
new initiative. One USDA official who took part in the
consultations this week described them as an exchange of "calm,
basic, factual economics."
    Another USDA official said there was "not even an informal
suggestion or hint" that the Soviets would live up to their
pledge to buy four mln tonnes of wheat this year if they were
granted more favorable terms.
    USDA and private sources agreed that consideration of an
EEP initiative by interagency review groups likely would be
delayed because of disarray within the White House stemming
from the Iran arms affair.


.I 5726
.C
earn
.W
ALATENN RESOURCES INC <ATNG> 4TH QTR NET.
    FLORENCE, Ala., Feb 26 - 
    Shr 75 cts vs 52 cts
    Net 1,699,124 vs 1,177,786
    Revs 45.6 mln vs 31.6 mln
    12 mths
    Shr 2.22 dlrs vs 2.20 dlrs
    Net 5,057,292 vs 4,961,085
    Revs 130.2 mln vs 126.7 mln


.I 5728
.C
acq
.W
VERSATILE TO SELL UNIT TO VICON.
    VANCOUVER, British Columbia, Feb 26 - <Versatile Corp> said
it agreed in principle to sell its Alberta-based Versatile
Noble Cultivators Co division to Vicon Inc, of Ontario, for
undisclosed terms.
    The division manufactures tillage and spraying equipment.


.I 5729
.C
acq
.W
VIDEOTRON BUYS INTO EXHIBIT COMPANY.
    MONTREAL, Feb 26 - (Groupe Videotron Ltd) said it agreed to
buy 50 pct of (Groupe Promexpo Inc), a company which
specializes in product exhibits, for three mln dlrs.           
  


.I 5730
.C
earn
.W
<MEMOTEC DATA INC> YEAR NET.
    MONTREAL, Feb 26 -
    Shr 81 cts vs 66 cts
    Net 5,011,000 vs 2,314,000
    Revs 57.3 mln vs 17.6 mln
    Note: results include extraordinary gains of 1,593,000 dlrs
or 26 cts a share in 1986 and 451,000 dlrs or 13 cts a share in
1985.


.I 5732
.C
crude
.W
******TEXACO CANADA CUTS CRUDE PRICES 64 CANADIAN CTS/BBL, PAR GRADE TO 22.26 CANADIAN DLRS.
Blah blah blah.

.I 5734
.C
crude
.W
TEXACO CANADA <TXC> LOWERS CRUDE POSTINGS.
    NEW YORK, Feb 26 - Texaco Canada said it lowered the
contract price it will pay for crude oil 64 Canadian cts a
barrel, effective today.
    The decrease brings the company's posted price for the
benchmark grade, Edmonton/Swann Hills Light Sweet, to 22.26
Canadian dlrs a bbl.
    Texaco Canada last changed its crude oil postings on Feb
19.


.I 5736
.C
grain;corn;
.W
USDA SAID UNLIKELY TO BROADEN CORN BONUS OFFER.
    WASHINGTON, Feb 26 - The U.S. Agriculture Department
probably will not offer a two dlr per bushel bonus payment to
corn farmers for any erodible cropland they enrolled in the
conservation reserve program last year, an aide to USDA
Secretary Richard Lyng said.
    Sen. Charles Grassley (R-Iowa) said yesterday that Lyng had
indicated he would consider giving those farmers the same two
dlr bonus offered corn farmers who are signing up for the 1987
program this month.
    But the aide to Lyng said it was doubtful that the
department would offer a retroactive bonus to farmers who
enrolled land in the 10-year conservation reserve last year.
    "How are you going to stop the tide," he said, referring to
demands that would follow from other commodity groups.


.I 5737
.C
crude
.W
MARATHON PETROLEUM REDUCES CRUDE POSTINGS.
    NEW YORK, Feb 26 - Marathon Petroleum Co said it reduced
the contract price it will pay for all grades of crude oil one
dlr a barrel, effective today.
    The decrease brings Marathon's posted price for both West
Texas Intermediate and West Texas Sour to 16.50 dlrs a bbl. The
South Louisiana Sweet grade of crude was reduced to 16.85 dlrs
a bbl.
    The company last changed its crude postings on Jan 12.


.I 5739
.C
earn
.W
<GEORGE WESTON LTD> YEAR NET.
    TORONTO, Feb 26 -
    Shr 2.31 dlrs vs 1.96 dlrs
    Net 119.0 mln vs 101.0 mln
    Revs 10.03 billion vs 8.88 billion


.I 5740
.C
grain;corn;oat;
.W
RELIEF TO U.S. CORN/OATS GROWERS SAID LIKELY.
    WASHINGTON, Feb 26 - U.S. farmers who in the past have
grown oats for their own use but failed to certify to the
government that they had done so probably will be allowed to
continue planting that crop and be eligible for corn program
benefits, an aide to Agriculture Secretary Richard Lyng said.
    Currently a farmer, to be eligible for corn program
benefits, must restrict his plantings of other program crops to
the acreage base for that crop.
    Several members of Congress from Iowa have complained that
farmers who inadvertantly failed to certify that they had grown
oats for their own use in the past now are being asked to halt
oats production or lose corn program benefits.
    USDA likely will allow historic oats farmers to plant oats
but not extend the exemption to all farmers, Lyng's aide said.


.I 5741
.C
money-supply
.W
N.Z. MONEY SUPPLY RISES 3.6 PCT IN DECEMBER.
    WELLINGTON, Feb 27 - New Zealand's broadly defined,
seasonally adjusted M-3 money supply grew an estimated 3.6 pct
in December after rising a revised 2.4 pct in November and 4.04
pct in December last year, the Reserve Bank said in a
statement.
    It said unadjusted M-3 increased to an estimated 30.07
billion N.Z. Dlrs from a revised 28.30 billion in November and
25.53 billion in December 1985.
    Year-on-year M-3 rose 17.77 pct from a revised 15.34 pct in
November and 20.50 pct in December 1985.
    Narrowly defined year-on-year M-1 growth was 15.89 pct
against a revised 27.52 pct in November and 12.3 pct a year
earlier.
    M-1 grew to an estimated 5.03 billion dlrs against a
revised 4.77 billion in November and 4.34 billion in December
1985.
    Year-on-year private sector credit grew 30.68 pct in
December against a revised 22.30 pct in November and 23.2 pct
in December 1985. Private sector credit grew to 22.24 billion
dlrs from a revised 20.92 billion in November and 17.01 billion
in December 1985.


.I 5742
.C
acq
.W
CIRCUIT SYSTEMS <CSYI> BUYS BOARD MAKER.
    ADDISON, Ill., Feb 26 - Circuit Systems Inc said it has
bought all of the stock of (Ionic Industries Inc) in exchange
for 3,677,272 shares of its common.
    Following the exchange there will be 4,969,643 shares of
Circuit Systems stock outstanding. Ionic holders will own about
74 pct of the outstanding stock of Circuit Systems, it said.
    Ionic, a maker of circuit boards, had revenues of 8.4 mln
dlrs and pretax profits of 232,000 dlrs in 1986, up from
revenues of 5.9 mln and pretax profits of 204,000 dlrs in 1985,
Circuit Systems said.


.I 5743
.C
oilseed;veg-oil;meal-feed;soybean;soy-meal;soy-oil;
.W
FALLING SOYBEAN CRUSH RATIOS CUT OUTPUT.
    by John Morrison, Reuters
    CHICAGO, Feb 26 - The sharp decline in soybean crush ratios
seen in the last few weeks, accelerating in recent days, has
pushed margins below the cost of production at most soybean
processing plants and prompted many to cut output of soybean
meal and oil.
    The weekly U.S. soybean crush rate was reported by the
National Soybean Processors Association this afternoon at 21.78
mln bushels, down from the 22 mln bushel plus rate seen over
the past two months when crush margins surged to the best
levels seen in over a year.
    Active soymeal export loadings at the Gulf had pushed
soybean futures and premiums higher, prompting a pick-up in the
weekly crush number.
    However, much of that export demand seems to have been met,
with most foreign meal users now waiting for the expected surge
in shipments of new crop South American soymeal over the next
few months.
    U.S. processors are now finding domestic livestock feed
demand is very light for this time of year due to the milder
than normal winter, so they steadily dropped offering prices in
an attempt to find buying interest, soyproduct dealers said.
    Soybean meal futures have also steadily declined in recent
weeks, setting a new contract low of 139.70 dlrs per ton in the
nearby March contract today.
    "Many speculators down here bought March soymeal and sold
May, looking for no deliveries (on first notice day tomorrow,
which would cause March to gain on deferreds)," one CBT crush
trader said.
    "But they've been bailing out this week because the March
has been acting like there will be a lot delivered, if not
tomorrow, then later in the month," he added.
    As a result of the weakness in soymeal, the March crush
ratio (The value of soyproducts less the cost of the soybeans)
fell from the mid 30s earlier this month to 22.6 cents per
bushel today, dropping over five cents in just the last two
days.
    The May crush ended today just over 17 cents, so no
processors will want to lock in a ratio at that unprofitable
level, the trader said. Hopefully, they will now start to cut
back production to get supplies in line with demand, he added.
    With futures down, processors are finding they must bid
premiums for cash soybeans, further reducing crush margins.
    A central Illinois processor is only making about 30 cents
for every bushel of soybeans crushed at current prices, down
sharply from levels just seen just a few weeks ago and below
the average cost of production, cash dealers said.
    Most soybean processing plants are still in operation, with
little talk of taking temporary down-time, so far. But
processors will start halting production in the next few weeks
it they continue to face unprofitable margins, they added.


.I 5744
.C
earn
.W
MAIL BOXES ETC <MAIL> 3RD QTR JAN 31 NET.
    SAN DIEGO, Calif., Feb 26 -
    Shr 23 cts vs 18 cts
    Net 509,144 vs 277,834
    Revs 2,258,341 vs 1,328,634
    Avg shrs 2,177,553 vs 1,564,605
    Nine mths
    Shr 55 cts vs 42 cts
    Net 1,150,633 vs 649,914
    Revs 6,169,168 vs 3,178,115


.I 5745
.C
earn
.W
MUNSINGWEAR INC <MUN> 4TH QTR JAN 3 LOSS.
    MINNEAPOLIS, Feb 26 -
    Shr loss 32 cts vs loss seven cts
    Net loss 1,566,000 vs loss 292,000
    Revs 39.4 mln vs 34.7 mln
    Year
    Shr profit 79 cts vs profit 74 cts
    Net profit 3,651,000 vs profit 3,020,000
    Revs 147.9 mln vs 114.2 mln
    Avg shrs 4,639,000 vs 4,059,000
    Note: Per shr adjusted for 3-for-2 stock split July 1986
and 2-for-1 split May 1985.


.I 5746
.C
money-supply
.W
FED DATA SUGGEST STABLE U.S. MONETARY POLICY.
    by Jeremy Solomons, Reuters
    NEW YORK, Feb 26 - Latest Federal Reserve data suggest that
the central bank voted to maintain the existing degree of
pressure on banking reserves at its regular policy-making
meeting two weeks ago, money market economists said.
    "The numbers were a little disappointing, but I think we
can take Mr Volcker at his word when he said that nothing had
changed," said Bob Bannon of Security Pacific National Bank.
    Fed Chairman Paul Volcker told a Congressional committee
last Thursday that the Fed's policy "has been unchanged up to
today."
    Although Volcker's statement last Thursday allayed most
fears that the Fed had marginally tightened its grip on
reserves to help an ailing dollar, many economists still wanted
confirmation of a steady policy in today's data, which covered
the two-week bank statement period ended yesterday.
    This need for additional reassurance was made all the more
acute by the Fed's decision yesterday to drain reserves from
the banking system by arranging overnight matched sale-purchase
agreements for the first time since April of last year,
economists added.
    Today's data showed that the draining action was for a
fairly large 3.9 billion dlrs, economists said.
    "The one thing that caught my eye were the relatively
sizeable matched sales on Wednesday," said Dana Johnson of
First National Bank of Chicago. "But there was a clearly
justified need for them. There was nothing ominous."
    "The Fed couldn't have waited until the start of the new
statement period today. If it had, it would have missed its
(reserve) projections," added Security Pacific's Bannon.
    A Fed spokesman told reporters that there were no large
single-day net miss in reserve projections in the latest week.
    Economists similarly shrugged off slightly higher-than-
expected adjusted bank borrowings from the Fed's discount
window, which averaged 310 mln dlrs a day in the latest week,
compared with many economists' forecasts of about 200 mln.
    For the two-week bank statement period as a whole, the
daily borrowing average more than doubled to 381 mln dlrs from
160 in the prior period.
    "There were wire problems at two large banks on Tuesday and
Wednesday, so I am not too bothered about the borrowings," said
Scott Winningham of J.S. Winningham and Co. The Wednesday
average rose to 946 mln dlrs from 148 mln a week earlier.
    Lending further support to the stable policy view was a
relatively steady federal funds rate of about six pct in the
latest week and persistently high levels of excess reserves in
the banking system, economists said.
    "For the time being, the Fed is following a neutral path,
with fed funds at about six to 6-1/8 pct," said Darwin Beck of
First Boston Corp. "I expect it to continue in that vein."
    "Excess reserves fell but they are still over a billion
dlrs," added First Chicago's Johnson. Banks' excess reserves
averaged 1.03 billion dlrs a day in the latest statement
period, down from 1.50 billion in the previous one.
    After the Fed declined to assign a 1987 target growth range
to the wayward M-1 money supply measure last week, little
attention was paid to a steeper-than-anticipated 2.1 billion
dlr jump in the week ended February 16.
    Looking ahead, economists said the Fed will have to tread a
fine line between the dollar's progress in the international
currency markets and the development of the domestic economy.
    "The market has perhaps exaggerated the dollar's effect on
Fed policy," said First Chicago's Johnson. "Of course, it will
take the dollar into account in future policy decisions but if
the economy is weak, it won't pull back from easing."


.I 5752
.C
gnp;cpi;
.W
FRANCE FACES PRESSUE TO CHANGE POLICIES.
    By Brian Childs, Reuters
    PARIS, Feb 26 - France's right wing government is facing
growing pressure to modify its economic policies after revising
down its 1987 growth targets and revising up its inflation
forecasts for this year.
    Moving reluctantly into line with most private sector
forecasts the government yesterday raised its 1987 inflation
estimate a half percentage point to 2.5 per cent and cut its
economic growth estimate to between two and 2.8 per cent from a
2.8 per cent target written into the annual budget last
september.
    Finance Minister Edouard Balladur said the revised figures
would not push the government off its chosen mix of price
deregulation, budget-cutting rigour and pay restraint.
    But Trade Union leaders served immediate notice they would
push to protect the purchasing power of their members, raising
the spectre of a vicious spiral of wage and price rises.
    And bank economists contacted by Reuters said they believed
Prime Minister Jacques Chirac could be forced by slow growth
and rising unemployment to reflate the economy later this year,
perhaps in the autumn, to boost his prospects in Presidential
elections due by April 1988.
    "The outlook is more worrying than it was a few weeks ago,"
said Societe Generale economist Alain Marais. "We have the
impression it may be difficult to get even two per cent growth
this year."
    "The big question is whether the government's policy of wage
moderation will be maintained," he added.
    The government has set public sector wage rises at aboout
1.7 per cent this year, with a three per cent ceiling for rises
justified by increased productivity.
    But the head of the socialist CFDT union federation, Edmond
Maire, meeting with Chirac today, renewed union demands already
rejected by the government for indexation clauses to be built
into future pay contracts to safeguard workers against higher
prices.
    Calling the government's policies "unbalanced and unjust," he
also demanded investment incentives to boost employment. He
announced after his meeting that Chirac had told him the
government would spend two billion francs on a series of
measures to boost employment and training
    Andre Bergeron, a widely respected leader of the moderate
Force Ouvriere labour group, put similar demands to Chirac
earlier in the week while the Communist-led CGT, the largest of
France's unions, declared the defence of its members earnings
its top priority.
    But with unemployment nearing 11 per cent last month, and
still rising, government supporters and some economic analysts
said they were confident Chirac could resist union pay demands.
    "Salary indexation was ended by the previous Socialist
government and I dont think this administration is going to
reverse that," commented Michel Develle, economist at
recently-privatised Banque Paribas.
    Damaging transport and electricity strikes over Christmas
and the New Year, partly blamed by the government for higher
inflation, had undermined the unions power and popularity, he
said.
    Develle said Paribas expected inflation to rise even more
than the governments revised forecast, perhaps to 2.6 or 2.7
per cent this year against last years 2.1 per cent.
    "But that would still be an exceptional achievement
considering that for the first time since the Second World War
all french prices have been freed," he commented.
    Finance Ministry officials said that the governments
abolition of price and rent controls last year was responsible
for nearly a quarter of a 0.9 per cent surge in January living
costs.
    But they claimed it was a once-off phenomenon that should
have no knock-on impact on the rest of the year.
    Both Marais and Develle said they agreed with that, so long
as the government kept wages under control.
    Prices could rise 1.5 per cent in the first three months of
1987 and two per cent in the first half year, fractionally more
than forecast this week by the National Statistics Institute,
INSEE,  Marais said. But the second half year should be better,
he added.
    Ironically, one side effect of higher inflation could be to
help the government achieve its aim of cutting the state budget
deficit, several analysts said.
    So long as public sector wages are held down, higher Value
Added Tax receipts resulting from rising prices should offset a
loss in revenues that otherwise would result from slower than
expected growth, they said.
   


.I 5753
.C
earn
.W
GTI CORP <GTI> 4TH QTR OPER NET.
    SAN DIEGO, Feb 26 -
    Oper shr profit six cts vs loss two cts
    Oper net profit 225,000 vs loss 91,000
    Revs 4,814,000 vs 3,339,000
    Year
    Oper shr profit 12 cts vs loss two cts
    Oper net profit 415,000 vs loss 73,000
    Revs 16.4 mln vs 16.9 mln
    Note: data does not include from discontinued operations,
4th qtr 1986 gain of 632,000 dlrs, or 19 cts per shr; 4th qtr
1985 loss of 250,000 dlrs, or seven cts per shr; 1986 year loss
of 4,054,000 dlrs, or 1.17 dlrs per shr; and 1985 year loss of
606,000 dlrs, or 17 cts per shr.


.I 5754
.C
crude
.W
HOUSTON OIL <HO> RESERVES STUDY COMPLETED.
    HOUSTON, Feb 26 - Houston Oil Trust said that independent
petroleum engineers completed an annual study that estimates
the trust's future net revenues from total proved reserves at
88 mln dlrs and its discounted present value of the reserves at
64 mln dlrs.
    Based on the estimate, the trust said there may be no money
available for cash distributions to unitholders for the
remainder of the year.
    It said the estimates reflect a decrease of about 44 pct in
net reserve revenues and 39 pct in discounted present value
compared with the study made in 1985.


.I 5755
.C
earn
.W
FAMOUS RESTAURANTS INC <FAMS> 4TH QTR LOSS.
    SCOTTSDALE, Ariz., Feb 26 -
    Shr loss 2.07 dlrs vs loss eight cts
    Net loss 11,445,000 vs loss 501,000
    Revs 14.5 mln vs 11.0 mln
    Year
    Shr loss 1.91 dlrs vs profit four cts
    Net loss 12,427,000 vs profit 211,000
    Revs 60.8 mln vs 51.5 mln
    Note: includes non-recurring charges of 12,131,000 dlrs in
the 4th qtr and 12,500,000 dlrs in the year for reserve for
underperforming restaurants.


.I 5756
.C
cpi
.W
JAPAN CONSUMER PRICES FALL 0.4 PCT IN JANUARY.
    TOKYO, Feb 27 - Japan's unadjusted consumer price index
(base 1985) fell 0.4 pct to 99.7 in January from the previous
month, the government's Management and Coodination Agency said.
    The fall compares with a decline of 0.2 pct in December.
    The January index compared with a year earlier was down 1.1
pct, the first drop larger than 1.0 pct since it fell 1.3 pct
in September 1958.
    Food costs rose in January from December but prices fell
for clothing, footwear and utilities, causing the overall
decline for the month.
    Housing, medical and educations costs increased in January
compared with a year earlier but the cost of utilities,
gasoline and vegetables fell.
    The unadjusted consumer price index for the Tokyo area
(base 1985) was down 0.1 pct in mid-February from a month
earlier at 100.2, reflecting lower prices for food, clothing
and footwear. Compared with a year earlier, the index was down
0.7 pct due to lower vegetable, fuel oil and utility costs.


.I 5757
.C
earn
.W
AVERY <AVY> SETS TWO FOR ONE STOCK SPLIT.
    PASADENA, Calif., Feb 26 - Avery said its board authorizerd
a two for one stock split, an increased in the quarterly
dividend and plans to offer four mln shares of common stock.
    The company said the stock split is effective March 16 with
a distribution of one additional share to each shareholder of
record March 9.
    It said the quarterly cash dividend of 10.5 cts per share
on the split shares, a 10.5 pct increase from the 19 cts per
share before the split.
    Avery said it will register with the Securities and
Exchange Commission shrortly to offer four mln additional
common shares. It will use the proceeds to repay debt, finance
recent acquisitions and for other corporate purposes.


.I 5759
.C
money-supply
.W
FEDERAL RESERVE WEEKLY M-2 COMPONENTS - FEB 26.
    Week Feb 16 vs Feb 9 (DAILY AVG BILLIONS)
          Seasonally Adjusted      Unadjusted
 Currency......186.9 vs 186.8....185.6 vs 185.7
 Demand Depos..300.3 vs 300.0....291.5 vs 295.6
 Other Check...242.9 vs 241.2....240.0 vs 242.7
 Savings.......164.3 vs 163.2....162.8 vs 161.9
 Small Time....362.2 vs 362.9....361.9 vs 362.7
 MMDAs...(Commercial Bank Only)..378.2 vs 379.1
 O/N Repos........................58.9 vs  59.0
 O/N Euros........................18.6 vs  19.2


.I 5763
.C
money-supply
.W
N.Z. CENTRAL BANK SEES SLOWER MONEY, CREDIT GROWTH.
    WELLINGTON, Feb 27 - Monetary and credit growth rates in
New Zealand are not expected to continue at current levels
following the Reserve Bank's move to tighten liquidity late
last year, Reserve Bank Governor Spencer Russell said.
    The monetary and credit growth figures for the December
quarter were probably artifically inflated by unusually high
growth in inter-institutional lending activity on the short
term money market, Russell said in a statement.
    The bank moved to tighten liquidity when the initial signs
of the recent expansion became apparent in September and
October last year, Russell said.
    Broadly defined M-3 figures released today showed growth of
17.8 pct in the year ended December compared with 13.1 pct in
the year ended September.
    Annual growth of private sector credit in calendar 1986 was
30.7 pct compared with 16.5 pct in the September year.
    "Available evidence suggests that corporate customers,
including non-bank financial institutions, have been exploiting
differences between interest rates on overdrafts with trading
banks and rates in the call market," Russell said.


.I 5764
.C
money-fx;interest;
.W
AVERAGE YEN CD RATES FALL IN LATEST WEEK.
    TOKYO, Feb 27 - Average interest rates on yen certificates
of deposit, CD, fell to 4.27 pct in the week ended February 25
from 4.32 pct the previous week, the Bank of Japan said.
    New rates (previous in brackets), were -
    Average CD rates all banks 4.27 pct (4.32)
    Money Market Certificate, MMC, ceiling rates for the week
starting from March 2          3.52 pct (3.57)
    Average CD rates of city, trust and long-term banks
    Less than 60 days          4.33 pct (4.32)
    60-90 days                 4.13 pct (4.37)
    Average CD rates of city, trust and long-term banks
    90-120 days             4.35 pct (4.30)
    120-150 days            4.38 pct (4.29)
    150-180 days            unquoted (unquoted)
    180-270 days            3.67 pct (unquoted)
    Over 270 days           4.01 pct (unquoted)
    Average yen bankers' acceptance rates of city, trust and
long-term banks
    30 to less than 60 days unquoted (4.13)
    60-90 days              unquoted (unquoted)
    90-120 days             unquoted (unquoted)


.I 5768
.C
interest
.W
JAPAN EXPECTED TO CUT BASE RATE FOR STATE BODIES.
    TOKYO, Feb 27 - Japan is expected to cut the base lending
rate for state financial institutions to 5.5 pct from 6.2 as
part of the recent pact by major industrial nations in Paris,
Finance Ministry sources said.
    They said the cut is based on a revision of the Trust Fund
Bureau Law, which should be approved by parliament on March 3,
abolishing the 6.05 pct minimum interest rate on deposits with
the bureau.
    The bureau channels funds to government financial
institutions for public works and other official uses, they
said.
    The base lending rate for state bodies such as the Japan
Development Bank, People's Finance Corp and the finance
corporations of local public enterprises usually moves in
tandem with long-term prime rates, the sources said.
    However, it was impossible for them to follow the last cut,
to 5.8 pct from 6.2 pct on January 28, because the Trust Fund
Bureau rate was legally set at 6.05 pct.
    The ministry will abolish the minimum rate and introduce a
market-related one to resolve the problem and stimulate the
domestic economy, they said.
    On Tuesday, the ministry allowed long-term bankers to cut
their prime to a record low of 5.5 pct, effective February 28.
The move suggested it had reached agreement with depositors
using the bureau, the postal savings system of the Posts and
Telecommunications Ministry and the Japan welfare annuity of
the Ministry of Health and Welfare, the sources said.
    These ministries are trying to determine which market rates
should be considered when setting the bureau's deposit rate,
the ministry sources said.
    Coupon rates on new 10-year government bonds, minus 0.1
percentage points, is the likeliest choice, they added.


.I 5770
.C
gnp;bop;
.W
AUSTRALIA'S KEATING CHANGES ECONOMIC FORECASTS.
    CANBERRA, Feb 27 - Domestic demand is now expected to make
no contribution to Australian economic growth in fiscal
1986/87, ending June 30, while net exports will account for all
of the overall increase, Treasurer Paul Keating said here.
    However, he did not say in his speech to the Economic
Planning Advisory Council (EPAC) if the forecast 2.25 pct rise
in gross domestic product (gdp) had been revised.
    But Keating said domestic demand could fall slightly this
financial year and net export growth will provide the total
source of gdp growth.
    The August budget had forecast domestic demand would
contribute 0.75 percentage points to non-farm gdp growth of 2.5
pct while net exports would account for 1.75 points.
    Keating said the overall impact of the changed economic
parameters is welcome as it appears to have contributed to a
slightly more rapid correction in the current account deficit
than first anticipated.
    "The government initially forecast a current account deficit
for 1986/87 of 14.75 billion -- our present expectation is that
the result will be somewhat lower, around 14 billion," he said.
    Partial indicators released since the last meeting of EPAC
in December indicate that the 1986/87 budget strategy is
broadly on track, Keating said.
    "They indicate that domestic demand has been a little more
sluggish than was expected at budget time," he said.
    "On the other hand, net exports seem to be expanding by more
than expected at budget time, and this is underpinning growth
in domestic production and employment."
    Keating said it now seems likely that the 1986/87 inflation
rate will exceed the budget forecast of eight pct.
    "Nevertheless, there is likely to be a marked slowing in
inflation over coming quarters as depreciation and budgetary
effects wane," he said.
    Keating said the government expects economic growth to pick
up moderately in 1987/88 due to a further significant rise in
net exports and a very moderate but positive contribution from
private domestic demand.
    He said domestic demand growth will be due to a
strengthening in real household disposable income.
    The moderate rise in economic growth next financial year
should be sufficient to sustain employment growth at a level
broadly equivalent to that of the current fiscal year.
    "The current account deficit will continue to show
improvement in 1987/88," Keating said.
    "As the impact of the exchange rate depreciations of recent
years recede further, and given continued effective wage
restraint, inflation should moderate markedly in 1987/88," he
said.


.I 5771
.C
grain;rice;
.W
THAI RICE EXPORTS RISE IN WEEK ENDED FEBRUARY 24.
    BANGKOK, Feb 27 - Thailand exported 84,960 tonnes of rice
in the week ended February 24, up from 80,498 the previous
week, the Commerce Ministry said.
    It said government and private exporters shipped 27,510 and
57,450 tonnes respectively.
    Private exporters concluded advance weekly sales for 79,448
tonnes against 79,014 the previous week.
    Thailand exported 689,038 tonnes of rice between the
beginning of January and February 24, up from 556,874 tonnes
during the same period last year. It has commitments to export
another 658,999 tonnes this year.


.I 5772
.C
oilseed;soybean;
.W
TOKYO GRAIN EXCHANGE TO RAISE MARGIN REQUIREMENTS.
    TOKYO, Feb 27 - The Tokyo Grain Exchange said it will raise
the margin requirement on the spot and nearby month for U.S.
And Chinese soybeans and red beans, effective March 2.
    Spot April U.S. Soybean contracts will increase to 90,000
yen per 15 tonne lot from 70,000 now. Other months will stay
unchanged at 70,000, except the new distant February
requirement, which will be set at 70,000 from March 2.
    Chinese spot March will be set at 110,000 yen per 15 tonne
lot from 90,000. The exchange said it raised spot March
requirement to 130,000 yen on contracts outstanding at March
13. Chinese nearby April rises to 90,000 yen from 70,000.
    Other months will remain unchanged at 70,000 yen except new
distant August, which will be set at 70,000 from March 2.
    The new margin for red bean spot March rises to 150,000 yen
per 2.4 tonne lot from 120,000 and to 190,000 for outstanding
contracts as of March 13.
    The nearby April requirement for red beans will rise to
100,000 yen from 60,000, effective March 2.
    The margin money for other red bean months will remain
unchanged at 60,000 yen, except new distant August, for which
the requirement will also be set at 60,000 from March 2.


.I 8317
.C
coffee
.W
PRODUCER SPLIT HEATS UP COFFEE QUOTA TALKS.
    By Lisa Vaughan, Reuters
    LONDON, March 1 - Talks on the possibility of reintroducing
global coffee export quotas have been extended into today, with
sparks flying yesterday when a dissident group of exporters was
not included in a key negotiating forum.
    The special meeting of the International Coffee
Organization (ICO) council was called to find a way to stop a
prolonged slide in coffee prices.
    However, delegates said no solution to the question of how
to implement quotas was yet in sight.
    World coffee export quotas -- the major device used to
regulate coffee prices under the International Coffee Agreement
-- were suspended a year ago when prices soared in reaction to
a drought which cut Brazil"s output by nearly two thirds.
    Brazil is the world"s largest coffee producer and exporter.
    Producers and consumers now are facing off over the
question of how quotas should be calculated under any future
quota distribution scheme, delegates said.
    Tempers flared late Saturday when a minority group of eight
producing countries was not represented in a contact group of
five producer and five consumer delegates plus alternates which
was set up to facilitate debate.
    The big producers "want to have the ball only in their court
and it isn"t fair," minority producer spokesman Luis Escalante of
Costa Rica said.
    The majority producer group has proposed resuming quotas
April 1, using the previous ad hoc method of carving up quota
shares, with a promise to try to negotiate basic quotas before
September 30, delegates said.
    Their plan would perpetuate the status quo, allowing Brazil
to retain almost all of its current 30 pct share of the export
market, Colombia 17 pct, Ivory Coast seven pct and Indonesia
six pct, with the rest divided among smaller exporters.
    But consuming countries and the dissident producer group
have tabled separate proposals requiring quotas be determined
by availability, using a formula incorporating exportable
production and stocks statistics.
    Their proposals would give Brazil a smaller quota share and
Colombia and Indonesia a larger share, and bring a new quota
distribution scheme into effect now rather than later.
    Brazil has so far been unwilling to accept any proposal
that would reduce its quota share, delegates said.
    Delegates would not speculate on prospects for agreement on
a quota package. "Anything is possible at this phase," even
adjournment of the meeting until March or April, one said.
    If the ICO does agree on quotas, the price of coffee on the
supermarket shelf is not likely to change sinnificantly as a
result, industry sources said.
    Retail coffee prices over the past year have remained about
steady even though coffee market prices have tumbled, so an
upswing probably will not be passed onto the consumer either,
they said.


.I 8318
.C
interest
.W
ITALIAN TREASURY CUTS INTEREST ON CERTIFICATES.
    ROME, March 1 - The Italian treasury said annual coupon
rates payable March 1988 on two issues of long-term treasury
certificates (CCTs) would be cut by about four percentage
points compared with rates this March.
    Coupon rates on 10-year certificates maturing March 1995
will fall to 9.80 pct from 13.65 pct and rates on 10-year
issues maturing in March 1996 would fall to 10.05 pct from
14.30 pct.
    The Treasury also cut by 0.60 point six-monthly coupons
payable this September on six issues maturing between September
1988 and September 1991.
    The issues carry terms of between five and seven years and
will have coupon rates of between 4.85 and 5.65 pct in
September compared with 5.45 and 6.25 pct this March.


.I 8320
.C
rubber;palm-oil;palmkernel;veg-oil;wheat;grain;coffee;sugar;corn;soybean;cotton;rice;tea;soy-meal;plywood;
.W
INDONESIAN AGRICULTURE GROWTH EXPECTED TO SLOW.
    JAKARTA, March 1 - Indonesia"s agriculture sector will grow
by just 1.0 pct in calendar 1987, against an estimated 2.4 pct
in 1986 as the production of some commodities stagnates or
declines, the U.S. Embassy said in a report.
    Production of Indonesia"s staple food, rice, is forecast to
fall to around 26.3 mln tonnes from an embassy estimate of
26.58 mln tonnes in 1986, according to the annual report on
Indonesia"s agricultural performance.
    The government officially estimates 1986 rice production at
26.7 mln tonnes, with a forecast 27.3 mln tonnes output in
1987.
    The report says wheat imports are likely to fall to 1.5 mln
tonnes in calendar 1987 from 1.69 mln tonnes in 1986 because of
a drawdown on stocks.
    "Growth prospects for agriculture in 1987 do not look
promising as rice production is forecast to decline and the
production of sugarcane, rubber and copra show little or no
gain," the report says.
    "The modest overall increase which is expected will be due
to significant gains in production of corn soybeans, palm oil
and palm kernels."
    Constraints to significant overall increases in
agricultural output include a shortage of disease resistant
seeds, limited fertile land, insect pests and a reluctance by
farmers to shift from rice production to other crops, the
report underlines.
    The fall in rice production is caused by an outbreak of
pests known as "wereng" or brown plant hoppers in 1986 which
largely offset gains in yields.
    The outbreak has forced the government to ban the use of 57
insecticides on rice because it was believed the wereng are now
resistant to these varieties, and to use lower-yielding, more
resistant rice types.
    The government is depending on increased production of
export commodities such as coffee, tea, rubber, plywood and
palm oil to offset revenue losses brought on by falling crude
oil prices.
    Palm oil production is expected to increase by over 7.0 pct
in 1987 to 1.45 mln tonnes from 1.35 mln, with exports rising
to an estimated 720,000 tonnes from 695,000 tonnes in 1986, the
report says.
    But while production of soybeans in 1987/88 (Oct-Sept) will
rise to 1.075 mln tonnes from 980,000 in 1986/87, imports will
also rise to supply a new soybean crushing plant.
    The report says that imports of wheat, soybeans, soybean
meal and cotton are not likely to decline as a result of last
September"s 31 pct devaluation of the rupiah because of a rise
in domestic demand.
    The report said that Indonesia"s overall economic
performance in calendar 1986 was about zero or even a slight
negative growth rate, the lowest rate of growth since the
mid-1960s. It compares with 1.9 pct growth in 1985 and 6.7 pct
in 1984.
    The dramatic fall in oil prices last year was responsible
for the slump.


.I 8321
.C
crude
.W
KUWAIT SAYS NO PLANS FOR EMERGENCY OPEC TALKS.
    KUWAIT, March 1 - Kuwait"s Oil Minister, in remarks
published today, said there were no plans for an emergency OPEC
meeting to review oil policies after recent weakness in world
oil prices.
    Sheikh Ali al-Khalifa al-Sabah was quoted by the local
daily al-Qabas as saying: "None of the OPEC members has asked
for such a meeting."
    He denied Kuwait was pumping above its quota of 948,000
barrels of crude daily (bpd) set under self-imposed production
limits of the 13-nation organisation.
    Traders and analysts in international oil markets estimate
OPEC is producing up to one mln bpd above a ceiling of 15.8 mln
bpd agreed in Geneva last December.
    They named Kuwait and the United Arab Emirates, along with
the much smaller producer Ecuador, among those producing above
quota. Kuwait, they said, was pumping 1.2 mln bpd.
    "This rumour is baseless. It is based on reports which said
Kuwait has the ability to exceed its share. They suppose that
because Kuwait has the ability, it will do so," the minister
said.
    Sheikh Ali has said before that Kuwait had the ability to
produce up to 4.0 mln bpd.
    "If we can sell more than our quota at official prices,
while some countries are suffering difficulties marketing their
share, it means we in Kuwait are unusually clever," he said.
    He was referring apparently to the Gulf state of qatar,
which industry sources said was selling less than 180,000 bpd
of its 285,000 bpd quota, because buyers were resisting
official prices restored by OPEC last month pegged to a marker
of 18 dlrs per barrel.
    Prices in New York last week dropped to their lowest levels
this year and almost three dollars below a three-month high of
19 dollars a barrel.
    Sheikh Ali also delivered "a challenge to any international
oil company that declared Kuwait sold below official prices."
    Because it was charging its official price, of 16.67 dlrs a
barrel, it had lost custom, he said but did not elaborate.
    However, Kuwait had guaranteed markets for its oil because
of its local and international refining facilities and its own
distribution network abroad, he added.
    He reaffirmed that the planned meeting March 7 of OPEC"s
differentials committee has been postponed until the start of
April at the request of certain of the body"s members.
    Ecuador"s deputy energy minister Fernando Santos Alvite said
last Wednesday his debt-burdened country wanted OPEC to assign
a lower official price for its crude, and was to seek this at
talks this month of opec"s pricing committee.
    Referring to pressure by oil companies on OPEC members, in
apparent reference to difficulties faced by Qatar, he said: "We
expected such pressure. It will continue through March and
April." But he expected the situation would later improve.


.I 8322
.C
crude
.W
INDONESIA SEEN AT CROSSROADS OVER ECONOMIC CHANGE.
    By Jeremy Clift, Reuters
    JAKARTA, March 1 - Indonesia appears to be nearing a
political crossroads over measures to deregulate its protected
economy, the U.S. Embassy says in a new report.
    To counter falling oil revenues, the government has
launched a series of measures over the past nine months to
boost exports outside the oil sector and attract new
investment.
    Indonesia, the only Asian member of OPEC and a leading
primary commodity producer, has been severely hit by last year"s
fall in world oil prices, which forced it to devalue its
currency by 31 pct in September.
    But the U.S. Embassy report says President Suharto"s
government appears to be divided over what direction to lead
the economy.
    "(It) appears to be nearing a crossroads with regard to
deregulation, both as it pertains to investments and imports,"
the report says. It primarily assesses Indonesia"s agricultural
sector, but also reviews the country"s general economic
performance.
    It says that while many government officials and advisers
are recommending further relaxation, "there are equally strong
pressures being exerted to halt all such moves."
    "This group strongly favours an import substitution economy,"
the report says.
    Indonesia"s economic changes have been welcomed by the World
Bank and international bankers as steps in the right direction,
though they say crucial areas of the economy like plastics and
steel remain highly protected, and virtual monopolies.
    Three sets of measures have been announced since last May,
which broadened areas for foreign investment, reduced trade
restrictions and liberalised imports.
    The report says Indonesia"s economic growth in calendar 1986
was probably about zero, and the economy may even have
contracted a bit. "This is the lowest rate of growth since the
mid-1960s," the report notes.
    Indonesia, the largest country in South-East Asia with a
population of 168 million, is facing general elections in
April.
    But the report hold out little hope for swift improvement
in the economic outlook. "For 1987 early indications point to a
slightly positive growth rate not exceeding one pct. Economic
activity continues to suffer due to the sharp fall in export
earnings from the petroleum industry."
    "Growth in the non-oil sector is low because of weak
domestic demand coupled with excessive plant capacity, real
declines in construction and trade, and a reduced level of
growth in agriculture," the report states.
    Bankers say continuation of present economic reforms is
crucial for the government to get the international lending its
needs.
    A new World Bank loan of 300 mln dlrs last month in balance
of payments support was given partly to help the government
maintain the momentum of reform, the Bank said.


.I 8326
.C
wheat;grain;
.W
CHINESE WHEAT CROP THREATENED BY PESTS, DISEASE.
    PEKING, March 1 - China's wheat crop this year is seriously
threatened by plant pests and diseases, the New China News
Agency said.
    More than 5 mln hectares of wheat-producing land in North
China could be affected because relatively warm and dry weather
had allowed bacteria and insect eggs to survive the winter, the
agency added.
    China"s Ministry of Agriculture, Animal Husbandry and
Fisheries has called for measures including the timely supply
of pesticides to farmers to combat the threat, it said.


.I 8327
.C
crude
.W
SAUDI RIYAL DEPOSIT RATES REMAIN FIRM.
    BAHRAIN, March 1 - Saudi riyal interbank deposits were
steady at yesterday's higher levels in a quiet market.
    Traders said they were reluctant to take out new positions
amidst uncertainty over whether OPEC will succeed in halting
the current decline in oil prices.
    Oil industry sources said yesterday several Gulf Arab
producers had had difficulty selling oil at official OPEC
prices but Kuwait has said there are no plans for an emergency
meeting of the 13-member organisation.
    A traditional Sunday lull in trading due to the European
weekend also contributed to the lack of market activity.
    Spot-next and one-week rates were put at 6-1/4, 5-3/4 pct
after quotes ranging between seven, six yesterday.
    One, three, and six-month deposits were quoted unchanged at
6-5/8, 3/8, 7-1/8, 6-7/8 and 7-3/8, 1/8 pct respectively.
    The spot riyal was quietly firmer at 3.7495/98 to the
dollar after quotes of 3.7500/03 yesterday.


.I 8331
.C
crude
.W
QATAR UNVEILS BUDGET FOR FISCAL 1987/88.
    DOHA, March 1 - The Gulf oil state of Qatar, recovering
slightly from last year's decline in world oil prices,
announced its first budget since early 1985 and projected a
deficit of 5.472 billion riyals.
    The deficit compared with a shortfall of 7.3 billion riyals
in the last published budget for 1985/86.
    In a statement outlining the budget for the fiscal year
1987/88 beginning today, Finance and Petroleum Minister Sheikh
Abdul-Aziz bin Khalifa al-Thani said the government expected to
spend 12.217 billion riyals in the period.
    Projected expenditure in the 1985/86 budget had been 15.6
billion riyals.
    Sheikh Abdul-Aziz said government revenue would be about
6.745 billion riyals, down by about 30 pct on the 1985/86
projected revenue of 9.7 billion.
    The government failed to publish a 1986/87 budget due to
uncertainty surrounding oil revenues.
    Sheikh Abdul-Aziz said that during that year the government
decided to limit recurrent expenditure each month to
one-twelfth of the previous fiscal year's allocations minus 15
pct.
    He urged heads of government departments and public
institutions to help the government rationalise expenditure. He
did not say how the 1987/88 budget shortfall would be covered.
    Sheikh Abdul-Aziz said plans to limit expenditure in
1986/87 had been taken in order to relieve the burden placed on
the country's foreign reserves.
    He added in 1987/88 some 2.766 billion riyals had been
allocated for major projects including housing and public
buildings, social services, health, education, transport and
communications, electricity and water, industry and
agriculture.
    No figure was revealed for expenditure on defence and
security. There was also no projection for oil revenue.
    Qatar, an OPEC member, has an output ceiling of 285,000
barrels per day.
    Sheikh Abdul-Aziz said: "Our expectations of positive signs
regarding (oil) price trends, foremost among them OPEC's
determination to shoulder its responsibilites and protect its
wealth, have helped us make reasonable estimates for the coming
year's revenue on the basis of our assigned quota."


.I 8332
.C
money-fx
.W
GULF BOND, STOCK MARKETS LAG BEHIND, GIB SAYS.
    BAHRAIN, March 1 - Gulf money markets have grown reasonably
well during the past decade, but bond and stock markets remain
to a large extent fragmented and lag behind, <Gulf
International Bank BSC> (GIB) said.
    The bank's economist Henry Azzam said in a review of Gulf
capital markets that investors have to relinquish traditional
investment vehicles such as real estate, foreign currency bank
accounts and precious metals.
    "Greater financial sophistication is needed coupled with
more diversified capital market instruments and a change in the
disclosure requirements on company accounts," he said.
    The GIB study reviewed capital markets under three
categories -- money markets, stock and bond markets.
    Azzam said Gulf states had been making greater use of
short-term money market instruments and banks in the region had
floated various euronotes and underwriting facilities.
    "Nevertheless, bond and stock markets remain, to a large
extent, fragmented and lagging behind," he said.
    Most debt in the region is still raised by syndicated loans
and bank facilities and very few companies had made use of
stock or bond issues. Only Kuwait has an official stock
exchange, while other Gulf nations have yet to establish
exchanges.
    But with dwindling financial surpluses in the Gulf,
governments are actively pursuing ways to develop capital
markets and set up domestic stock exchanges, Azzam said.
    He said recession stemming from sliding oil prices had
"clearly had a negative impact on the development of capital
markets in the region."
    In addition, family firms are reluctant to go public,
financial awareness among investors is still lacking and
investment analysis and corporate reporting standards lack
depth. A sharp fall in share prices in the early 1980s prompted
investors to hold on to shares hoping for an eventual recovery.
    Azzam said the absence of proper commercial law in some
Gulf countries and authorities' apparent reluctance to adopt
financial innovations had also hampered capital markets.
    He called for clearly defined laws governing incorporation
of joint stock companies and the flotation of debt instruments.
    Azzam said capital market instruments should be made
available to all citizens and institutions of Gulf Cooperation
Council (GCC) states -- Bahrain, Kuwait, Qatar, Oman, Saudi
Arabia and the United Arab Emirates (UAE). Some moves had been
taken in this direction, with Bahrain allowing GCC nationals to
own up to 25 pct of locally incorporated companies.
    Azzam said Gulf money markets had received greater depth
from the introduction of treasury bill offerings in Bahrain and
the expansion of securities repurchase regulations in Saudi
Arabia.
    But he added there is "no bond market to speak of" in Saudi
Arabia, Qatar, Oman or the UAE, with the last Saudi riyal
denominated bond issued in 1978.
    While Bahrain plans an official stock exchange and trading
in Saudi Arabia has picked up, establishment of formal
exchanges in Qatar, Oman and the UAE does not appear imminent,
Azzam said.


.I 8333
.C
crude
.W
SAUDI ARABIA REITERATES COMMITMENT TO OPEC PACT.
    BAHRAIN, March 1 - Saudi Arabian Oil Minister Hisham Nazer
reiterated the kingdom's commitment to last December's OPEC
accord to boost world oil prices and stabilise the market, the
official Saudi Press Agency SPA said.
    Asked by the agency about the recent fall in free market
oil prices, Nazer said Saudi Arabia "is fully adhering by the
... Accord and it will never sell its oil at prices below the
pronounced prices under any circumstance."
    Nazer, quoted by SPA, said recent pressure on free market
prices "may be because of the end of the (northern hemisphere)
winter season and the glut in the market."
    Saudi Arabia was a main architect of the December accord,
under which OPEC agreed to lower its total output ceiling by
7.25 pct to 15.8 mln barrels per day (bpd) and return to fixed
prices of around 18 dlrs a barrel.
    The agreement followed a year of turmoil on oil markets,
which saw prices slump briefly to under 10 dlrs a barrel in
mid-1986 from about 30 dlrs in late 1985. Free market prices
are currently just over 16 dlrs.
    Nazer was quoted by the SPA as saying Saudi Arabia's
adherence to the accord was shown clearly in the oil market.
    He said contacts among members of OPEC showed they all
wanted to stick to the accord.
    In Jamaica, OPEC President Rilwanu Lukman, who is also
Nigerian Oil Minister, said the group planned to stick with the
pricing agreement.
    "We are aware of the negative forces trying to manipulate
the operations of the market, but we are satisfied that the
fundamentals exist for stable market conditions," he said.
    Kuwait's Oil Minister, Sheikh Ali al-Khalifa al-Sabah, said
in remarks published in the emirate's daily Al-Qabas there were
no plans for an emergency OPEC meeting to review prices.
    Traders and analysts in international oil markets estimate
OPEC is producing up to one mln bpd above the 15.8 mln ceiling.
    They named Kuwait and the United Arab Emirates, along with
the much smaller producer Ecuador, among those producing above
quota. Sheikh Ali denied that Kuwait was over-producing.


.I 8334
.C
coffee
.W
COFFEE QUOTA TALKS CONTINUE, NO ACCORD SEEN LIKELY.
    LONDON, March 2 - The International Coffee Organization
(ICO ) council talks on reintroducing export quotas continued
with an extended session lasting late into Sunday night, but
delegates said prospects for an accord between producers and
consumers were diminishing by the minute.
    The special meeting, called to stop the prolonged slide in
coffee prices, was likely to adjourn sometime tonight without
agreement, delegates said.
    The council is expected to agree to reconvene either within
the next six weeks or in September, they said.
    The talks foundered on Sunday afternoon when it became
apparent consumers and producers could not compromise on the
formula for calculating any future quota system, delegates
said.
    Coffee export quotas were suspended a year ago when prices
soared in response to a drought which cut Brazil's crop by
nearly two-thirds. Brazil is the world's largest coffee
producer and exporter.


.I 8338
.C
wheat;grain;
.W
CANADA-EGYPT WHEAT NEGOTIATIONS TO CONTINUE.
    CAIRO, March 2 - Canadian and Egyptian wheat negotiators
failed to conclude an agreement on Canadian wheat exports to
Egypt during talks last week, but the Canadian team will return
to Cairo for further negotiations, Canadian embassy officials
said.
    An embassy official declined to identify which issues
remained to be resolved and when the talks would resume.
    In a five-year protocol signed in 1985, Cairo agreed to
purchase 500,000 tonnes of Canadian wheat a year.


.I 8339
.C
wheat;grain;
.W
INDONESIAN WHEAT IMPORTS EXPECTED TO FALL IN 1987.
    JAKARTA, March 2 - Indonesia's wheat imports are expected
to fall to 1.5 mln tonnes in calendar 1987 from 1.69 mln in
1986, the U.S. Embassy's annual agriculture report said.
    It said the drop was expected, because there will be a
drawdown on stocks built up near the end of 1986.
    It said wheat stocks at the end of 1986 were 390,000
tonnes, up from 223,000 at end-1985. It forecast end-1987
stocks at around 290,000 tonnes.
    The main suppliers in 1986 were Australia (44 pct), the
U.S. (29 pct), Canada (12 pct), Argentina (8 pct) and Saudi
Arabia (5 pct).


.I 8341
.C
money-fx
.W
ZAMBIA TO RETAIN CURRENCY AUCTION, SAYS KAUNDA.
    LUSAKA, March 2 - Zambia will retain its foreign-exchange
auction system despite the suspension of weekly auctions since
January 24, President Kenneth Kaunda said.
    "We have not run away from the auction. It hasn't been
abolished at all," he told Reuters in an interview.
    He said the system would be reintroduced after current
talks with the World Bank and the International Monetary Fund
and, he hoped, would be backed by fresh foreign aid funds.
    Kaunda dismissed central bank statements the new auction
system would be used to allocate foreign exchange to private
bidders but not to fix the exchange rate.
    Kaunda said the auction system had faltered because of the
government's shortage of foreign exchange to meet demand.
    It was suspended when the kwacha's rapid devaluation and
strong fluctuations made economic planning almost impossible
for the government and the private sector, he said.
    Weekly foreign-exchange auctions began in October 1985. The
kwacha fell from 2.20 to the dollar to about 15 in 16 months.
In January 1987 the government was more than two months in
arrears in paying foreign currency to successful bidders, and
the auction was suspended and replaced with a fixed exchange
rate of nine kwacha to the dollar.


.I 8344
.C
sugar
.W
INDONESIAN SUGAR OUTPUT SEEN SHORT OF TARGET.
    JAKARTA, March 2 - Indonesia's raw sugar output is likely
to be 1.8 mln tonnes in calendar 1987, unchanged from 1986 and
below the government's 1987 forecast of 2.5 mln, the U.S.
Embassy said in its agricultural outlook for 1987.
    Indonesia bought 162,500 tonnes of raw sugar on world
markets in late 1986, the report said.
    The embassy estimated Indonesia's calendar 1986 raw sugar
production at 1.8 mln tonnes, against a government estimate of
1.99 mln.
    It said that Indonesia's move into sugar self-sufficiency
in 1984 may have been short-lived.
    The report said, "The government continues to promote
sugarcane production through its smallholder intensification
program and a relatively high guaranteed price to sugarcane
producers.
    "However, there are considerable indications that farmers
are reluctant to plant cane because its economic return is not
as good as that of other crops."


.I 8345
.C
acq
.W
NIPPON KOKAN STEEL AFFILIATES CONSIDERING MERGER.
    TOKYO, March 2 - Toshin Steel Co Ltd <TOSS.T> and <Azuma
Steel Co Ltd>, affiliates of Nippon Kokan KK <NKKT.T>, are
considering a merger, company spokesmen said.
    Toshin Steel, owned 41.9 pct by Nippon Kokan, and Azuma
Steel, owned 41.3 pct by Nippon Kokan, are expected to decide
by the end of March, they said. Both firms have been struggling
with losses caused by the recession in the steel industry and
the yen's appreciation.
    Azuma Steel's current losses are estimated at 3.1 billion
yen in the year ending March 31 against a 6.99 billion loss a
year earlier, a spokesman said. The firm employs 1,100 workers
    Toshin Steel, with 1,700 workers, has given no forecast for
the year ending March 31.
    But industry sources said they expected the company to show
current losses of about five billion yen or more in 1986/87
compared with a 2.98 billion loss in 1985/86.


.I 8352
.C
meal-feed
.W
INDONESIA UNLIKELY TO IMPORT PHILIPPINES COPRA.
    JAKARTA, March 2 - Indonesia is unlikely to import copra
from the Philippines in 1987 after importing 30,000 tonnes in
1986, the U.S. Embassy's annual agriculture report said.
    The report said the 31 pct devaluation of the Indonesian
rupiah, an increase in import duties on copra and increases in
the price of Philippines copra have reduced the margin between
prices in the two countries.
    Indonesia's copra production is forecast at 1.32 mln tonnes
in calendar 1987, up from 1.30 mln tonnes in 1986.


.I 8354
.C
trade
.W
SOVIET ECONOMIST SEES FEW 1987 GAINS IN U.S. TRADE.
    NEW YORK, March 10 - There is little chance Soviet exports
to the United States will rise in 1987, but Moscow's current
trade reforms should result in more trade in manufactured goods
in future, a Soviet economist said.
    Sergey Frolov, chief economist at Amtorg Trading Corp, an
agent for Soviet trade organisations and industries, told a
U.S.-USSR business meeting the Soviet Union produces few items
that western nations want.
    But reforms, including upgrading the quality of goods and
allowing joint ventures with foreign firms, will encourage
modest export gains in future.
    Frolov said the Soviet Union exported 500 mln dlrs worth of
goods to the United States in 1986 and imported 1.5 billion
dlrs worth. He gave no trade forecast for 1987.
    But he said that even if all obstacles were removed, total
trade between the two countries would remain between two and
three billion dlrs a year.
    "The post-detente embargoes have taught the USSR to limit
its trading with the U.S.," he said.


.I 8355
.C
money-fx
.W
CHINA ALLOWS NATIONWIDE FOREIGN EXCHANGE SAVING.
    PEKING, March 11 - People throughout China can now open
foreign exchange accounts at the Bank of China, the official
Shenzhen Economic Zone Daily said.
    Previously only residents of Guangdong and Fujian provinces
could do this.
    The paper also said the minimum for opening a fixed deposit
account had been cut to 50 yuan equivalent, from 150 yuan. The
minimum for a current account is 20 yuan equivalent.
    The paper said depositors could now withdraw all or part of
their account, subject to a branch's reserves, instead of only
a fixed amount as previously.
    The paper said deposits may now be opened in French francs
as well as the already available U.S. Dollar, Hong Kong dollar,
sterling, yen and marks.
    Bank of China branches in Hainan island also accept
deposits in Singapore dollars, and those in Wenzhou, Zhejiang
province, accept deposits in Dutch guilders, the paper said.
    It gave no further details.


.I 8358
.C
wheat;grain;rice;
.W
SICHUAN BRACED TO FIGHT DROUGHT.
    PEKING, March 11 - The Sichuan government has ordered that
any work or meeting which interferes with the fight against
drought must be cancelled or postponed to save time, energy and
manpower, the People's Daily domestic edition said.
    Sichuan is one of six provinces threatened by drought.
    Wen Wei Po, a Hong Kong daily, said the drought, the worst
for more than 20 years, is affecting nearly two mln hectares in
100 counties in Sichuan, the country's biggest agricultural
producer.
    Sichuan has experienced temperatures three degrees
Centigrade higher than normal and rainfall up to 70 pct less
than normal since early February, affecting wheat, oil-bearing
crops, rice planting and dryland cash crops, it said.
    The paper said 43,000 hectares in Meixian county in
Guangdong are seriously short of water.
    The People's Daily said Henan, Shaanxi, Gansu and Hebei are
also suffering from drought.
    Henan's grain output fell by 2.5 mln tonnes last year from
the 1985 level because of drought which has been affecting the
province since May.


.I 8359
.C
trade
.W
ECONOMIC SPOTLIGHT - JAPAN PUSHES ITS CHIPMAKERS.
    By Linda Sieg, Reuters
    TOKYO, March 11 - Japanese microchip makers are being
strong-armed into compliance with a U.S.-Japan pact on
semiconductors halting predatory pricing and opening Japan's
market to foreign chips, industry analysts said.
    But doubts remain over whether the Ministry of
International Trade and Industry (MITI), which is pressuring
the firms, can successfully battle market forces and whether
the U.S. Industry is geared up to take advantage of any
breathing space, they said.
    U.S. Threats to scrap the agreement signed last September
have pushed MITI to try harder to get recalcitrant Japanese
chipmakers to abide by the pact, the analysts said.
    "MITI has been moving hot and heavy throughout the industry
to get things done," said Bache Securities (Japan) associate
vice president Peter Wolffe.
    Last month, MITI told chipmakers to cut production for the
January to March period by 10 pct to help dry up inexpensive
chips that have escaped from Japan to grey markets not subject
to the pact's price controls.
    The ministry also asked electronics firms to provide
distributors with certificates designating them as authorised
exporters, in an effort to close loopholes through which grey
marketeers sneak chips out of Japan, market analysts said.
    U.S. Trade negotiators here last week said the pact was in
jeopardy because of continued dumping in non-American markets
and little sign of increased foreign sales in Japan.
    But major Japanese firms appear to have agreed to the
production cuts, several analysts said. Last week, NEC Corp
said it would cut production in line with MITI's request.
    "NEC has been the most aggressive in resisting MITI's
demands," said David Keller, analyst at James Capel and Co. "Once
NEC cuts production, it means they all have."
    Still, pressures remain to keep production high. Japanese
firms need high output to cut unit prices for U.S. Sales that
the Commerce Department assigns them under the pact.
    "The best way to lower cost is to produce more," said Salomon
Brothers Asia Ltd analyst Carole Ryavec.
    Preparations for a possible upturn in demand could also
spur higher production next quarter, Merrill Lynch analyst Matt
Aizawa said.
    Grey marketeers may also be able to outfox any new
restrictions, some industry officials said.
    "It's like tax avoidance schemes," said Steve Donovan, head
of MMI Japan K.K. "As soon as you close one route, another
opens."
    MITI's pressure has annoyed some makers, who had earlier
shrugged off MITI guidance.
    "It's getting to be like communism," said one.
    But analysts said output cuts could help by making it
easier to increase prices as planned on April 1 and forcing
firms to stop extending market share by selling at a loss.
    "They're going to have to start running their businesses
like businesses," Bache's Wolffe said.
    MITI has also been conducting a highly public campaign
urging chip users to buy foreign-made chips, but U.S. Industry
officials said response has been mixed at best.
    "There has been some change, but it's not across the board,"
said one U.S. Spokesman. "The companies have a varying degree of
urgency."
    The ultimate impact of all these efforts by MITI on the
troubled U.S. Industry remains in doubt, analysts added.
    Pressure to cut production of 256 kilobit DRAM (dynamic
random access memory) chips could merely speed the transition
to one megabit chips, where Japan now leads, analysts said.
    Whether U.S. Firms are able to stage a comeback in memory
chips, or interested in doing so, also remains unclear, they
said.
    Analysts are watching with interest the fate of a new U.S.
Consortium which hopes to challenge Japan by developing the
most advanced technology for microchip manufacturing.
    Even in the thorny area of access, much depends on U.S.
Commitment as well as on Japanese openness, some said.
    "The SIA (U.S. Semiconductor Industry Association) doesn't
even have an office here," a source close to the industry said.
"You could question just how committed they are."
    In addition, some industry analysts question the
effectiveness of a bilateral agreement that leaves out third
country chipmakers such as those in South Korea.
    "(South) Korea's gaining market share," said one analyst.
"They're the real winners from the agreement."


.I 8361
.C
interest
.W
******Sumita says little room for Bank of Japan to further ease credit policy.
Blah blah blah.

.I 8362
.C
interest
.W
SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY.
    TOKYO, March 11 - Bank of Japan governor Satoshi Sumita
said there is little room left for the central bank to further
ease its credit policy as interest rates levels are now
approaching their lower limit.
    "The government should instead seek ways of making the best
use of its fiscal policy," he told a press conference.
    His remarks were concerned with a comprehensive economic
stimulative package the government plans to adopt in the coming
days.
    At the recent talks among the six major industrialised
nations in Paris, Japan promised to work out a comprehensive
economic package to boost domestic demand, which in turn would
help increase its imports and reduce its trade surplus.
    Sumita also said the economy will show a gradual upturn in
the second half of the year if the yen remains stable.
    He said there is caution in the foreign exchange market
against a further rise of the yen and mark and this explains
the recent stability in the currency markets. Conflicting
economic indicators from the U.S. Have also been dampening
market activity, he added.


.I 8365
.C
crude
.W
IRANIAN OIL MINISTER IN UAE TALKS.
    ABU DHABI, March 11 - Iranian Oil Minister Gholamreza
Aqazadeh is in the United Arab Emirates (UAE) to discuss oil
prices and the general market situation, Iranian officials
accompanying him said.
    He will meet UAE President Sheikh Zaid bin Sultan
al-Nahayan and Oil Minister Mana Said al-Oteiba.
    Aqazadeh arrived last night after a brief stopover in
Riyadh, where he met Saudi Arabia's Oil Minister Hisham Nazir.
    The official Saudi Press Agency quoted him as saying his
talks at Riyadh with Nazir had been constructive and good.
    Aqazadeh said Organisation of Petroleum Exporting Countries
(OPEC) members were agreed on holding production stable and he
reiterated the importance of maintaining oil prices.
    OPEC members agreed in December to limit production to 15.8
mln barrels per day for the first half of this year and on a
benchmark price of 18 dlrs a barrel from February 1.
    Aqazadeh also visted OPEC members Gabon, Algeria and Libya.
The Iranian news agency, IRNA, quoted him as saying before
leaving Tripoli that OPEC should do everything possible to make
oil prices permanently stable.


.I 8366
.C
oilseed;soybean;
.W
JAPAN MAY INCREASE ITS BRAZILIAN SOYBEAN PURCHASES.
    TOKYO, March 11 - Japanese crushers are likely to buy at
least 200,000 tonnes of Brazilian soybeans this year and
another 100,000 to 200,000 if quality and shipping conditions
are good against 128,089 tonnes in 1986, trade sources said.
    A Japanese trading house recently bought about 31,000
tonnes of soybeans for April 10/May 10 shipment, they said.
    "Because Brazilian soybean prices are now some 10 cents a
bushel cheaper than U.S. Origin due to the bumper harvest, it
is highly likely that Japanese crushers will increase their
buying volume," one source said. Brazilian beans are available
to Japan for shipment from May to July.


.I 8367
.C
lead;copper;zinc;
.W
AUSTRALIAN METAL TRADER LINKS TO ASTURIANA DE ZINC.
    BRISBANE, March 11 - <Metal Traders Australasia Ltd> said a
newly-formed subsidiary, the <Austmet Ltd> group, has
negotiated an exclusive long-term contract with Spain's
<Asturiana de Zinc> to market its zinc metal exports.
    Metal Traders said in a statement the contract would
underpin the worldwide zinc, copper and lead trading activities
of Austmet, a wholly-owned London-based company with a U.S.
Unit in Stamford, Connecticut.
    Austmet has recruited a group of base metal traders,
currently operating out of Britain and the U.S., Who have
handled Asturiana's business for the past five years, it said.
    Asturiana has a three-year option to purchase 25 pct of the
Austmet group, to be priced on an independent valuation at the
time of exercise, Metal Traders said.
    Austmet will have an initial equity base of one mln stg, a
turnover of 200 mln Australian dlrs rising to 300 mln in the
first year, and credit lines of up to 30 mln U.S. Dlrs.
    Austmet should be generating profits from July 1 and a
1.5-2.5 mln dlr net is envisaged within two years, it said.
    Metal Traders said Asturiana has the largest zinc smelting
capacity in Europe -- nearly 200,000 tonnes a year of 99.995
pct high-grade zinc, at Aviles in northern Spain.
    Metal Traders, a listed company, was formerly <Pyrotech
Resources N.L.> whose chief activity was the development and
marketing of high-technology smelting processes invented in
Australia, notably the Siromelt Zinc Fuming Process.
    But in late 1986, control of the company changed and it
expanded by acquisition into metal trading in Australia and
Asia. It then changed its name.
    It also has the marketing contract for mineral sands
produced by <TiO2 Corp N.L.>, of which it holds 17.5 pct.
    In today's statement, Metal Traders also said it is
reviewing possible acquisition of a mineral producer.


.I 8368
.C
crude
.W
SAUDI ARABIA'S KING FAHD WANTS STABLE OIL PRICES.
    By STEPHEN JUKES AND PHILIP SHEHADI, REUTERS
    RIYADH, March 11 - King Fahd said today Saudi Arabia wants
oil price stability and he called on non-OPEC producers to
avoid harmful competition with the 13 nation group.
    His plea, in an interview with Reuters and the television
news agency Visnews, came ahead of a state visit he will make
to Britain later this month.
    King Fahd was asked whether Saudi Arabia would be prepared
to reduce its oil output below its OPEC quota of 4.133 mln
barrels per day (bpd) to defend the 18 dlr benchmark price
agreed to by OPEC last December.
    The King replied: "Saudi Arabia doesn't decide prices by
itself but certainly desires price stability."
    Non-OPEC countries "must help us in a framework of common
interest so that there is no type of competition which could
prove harmful to everyone," he said.
    Asked if he saw the 18 dlr per barrel benchmark as a first
step towards higher world oil prices, King Fahd said it was not
for Saudi Arabia but for all OPEC countries to determine such
issues. Iran and Algeria have already called for a higher
benchmark.
    In recent weeks the 18 dlr level has come under pressure,
due partly to quota violations by some OPEC members. King Fahd
said Saudi Arabia, the world's largest oil exporter, was
adhering to decisions made at OPEC's December conference which
set a 15.8 mln bpd output ceiling for the first half of 1987.
    A major non-OPEC producer, Britain has so far resisted the
group's pleas to curb its North Sea oil output.
    The King also urged the world community to help the
Palestinians return to their homeland and called for a peaceful
end to the Iran-Iraq war. The 6-1/2-year-old war could not be
resolved on the battlefield, he said.


.I 8369
.C
earn
.W
HILLSDOWN HOLDINGS PLC <HLDN.L> 1986 YEAR.
    LONDON, March 11 -
    Shr 16.3p vs 12.2p
    Div 2.75p vs 2.25p making 3.8p vs 3.15p adjusted for
    Three-for-one capitalisation
    Pre-tax profit 54.9 mln stg vs 33.4 mln
    Turnover 1.70 billion vs 1.13 billion
    Tax 7.6 mln vs 2.6 mlnProfit attributable 51.9 mln vs 30.1   
 Mln
    Cost of Sales 1.49 billion vs 999.3 mln
    Gross profit 215.9 mln vs 136.2 mln
    Distribution costs 90.3 mln vs 57.2 mln
    Adminstrative expenses 65.9 mln vs 40.8 mln
    Other operating income 3.9 mln vs nil
    Interest payable 8.7 mln vs 4.8 mln
    Minority interests 1.0 mln vs 0.7 mln
    Extraordinary credit (sale of share in S and W Berisford
Plc) 5.6 mln vs nil
    Operating profit includes -
    Poultry, eggs and animal feed 21.7 mln vs 17.2 mln
    Food processing and distribution 15.4 mln vs 6.9 mln
    Furniture and timber distribution 8.4 mln vs 3.4 mln
    Fresh meat and bacon 8.0 mln vs 4.5 mln


.I 8371
.C
oilseed;soybean;
.W
JAPAN CRUSHERS START APRIL U.S. SOYBEAN BUYING.
    TOKYO, March 11 - Japanese crushers, starting to buy U.S.
Soybeans for April shipment, have recently made purchases of
some 48,000 tonnes, trade sources said.
    The sources said they could not estimate the total volume
to be purchased for April shipping because Japan's crushing
program for April and June is unclear.
    They had predicted earlier that crushers' April shipment
U.S. Bean purchases would drop to 260,000 to 270,000 from the
monthly average of 300,000 to 330,000 tonnes due to low soybean
meal prices.


.I 8372
.C
acq
.W
KAUFHOF CONSIDERING TAKING STAKE IN HAPAG-LLOYD.
    COLOGNE, March 11 - West German retail group Kaufhof AG
<KFHG.F> is considering taking a stake in shipping and
transport group Hapag-Lloyd AG <HPLG.F> but has yet to reach a
final decision, a spokesman said in response to queries.
    Press reports said Kaufhof wanted a stake of up to 12.5 pct
in Hapag-Lloyd.
    The Kaufhof spokesman noted any decision on purchasing
shares in the shipping group would have to be approved by the
supervisory board, which is due to hold a meeting tomorrow.
    Late last year the Gevaert group of Belgium and West
Germany's VEBA AG <VEBG.F> said they had each acquired a 12.5
pct stake in Hapag-Lloyd from Deutsche Bank AG <DBKG.F> and
Dresdner Bank AG <DRSD.F>.
     Industry sources estimate Deutsche and Dresdner,
Hapag-Lloyd's majority shareholders, held about 75 pct of
Hapag-Lloyd's share capital before selling portions of it to
Gevaert and VEBA.
    The two banks have said they eventually wanted to reduce
their stake in the shipping group to 15 pct each.


.I 8373
.C
strategic-metal
.W
JAPAN AND THAILAND TO JOINTLY EXTRACT RARE METALS.
    TOKYO, March 11 - Japan's Agency of Natural Resources and
Energy said it will begin experiments with Thailand at the end
of March to start commercial production of rare metals in 1989
under a joint project.
    An agency official said it will set up a 500 mln yen pilot
plant in Bangkok which will extract high quality rare metals
such as titanium and niobium from sand left over from tin
production processes in Thailand.
    The plant wilq use about a tonne of sand per day, although
it is unclear how much rare metal will be extracted, the
official said.


.I 8374
.C
money-fx
.W
HUNGARY TO DEVALUE FORINT AGAINST WESTERN UNITS.
    BUDAPEST, March 11 - Hungary is to devalue the forint by an
average of eight pct against Western currencies, the official
news agency MTI said.
    MTI did not say when the devaluation would become
effective, but it expected new rates to be announced later
today.
    Hungary devalued the forint by a similar amount last
September 23. Western bankers say the forint is more
realistically valued than currencies of Hungary's COMECON
allies.


.I 8376
.C
earn
.W
HILLSDOWN SAYS EARLY 1987 RESULTS ENCOURAGING.
    LONDON, March 11 - Hillsdown Holdings Plc <HLDN.L> said
early results for 1987 were encouraging, and the combination of
its investment and acquisition strategies enabled it to look
forward confidently for an excellent result for the year.
    The company was commenting on 1986 results which showed
pre-tax profit rising to 54.9 mln stg from 33.4 mln previously
on turnover that lifted to 1.70 billion from 1.13 billion.
    The figures initially boosted the share price to 286p from
281p last night, but they then eased back to 283p by 0830 GMT.
    Hillsdown said capital expenditure rose in 1986 to 60 mln
stg from 31.5 mln and would continue at this high level in
1987.
    The placing of 82.5 mln shares last year raised 160.7 mln
stg and enabled shareholders' funds to more than double to 352
mln at year-end.
    Net borrowings were 20 pct of shareholder's funds and the
group had listed investments of 47.1 mln.
    The company said it had bought a total of 40 companies
during the year for a total price of some 180 mln stg. Although
these had made minor contribution to profits the real benefits
would come in 1988 and beyond.


.I 8379
.C
earn
.W
NIPPON OIL SEES SHARPLY LOWER SALES AND PROFITS.
    TOKYO, March 11 - Nippon Oil Co Ltd <NPOL.T> predicted
parent company net profit of about nine billion yen in the year
ending March 31, down 10.4 pct from a year earlier, president
Yasuoki Takeuchi told a press conference.
    Current profit for the year was estimated at 17 to 18
billion yen, down 20 to 24 pct from a year earlier, he said.
    Takeuchi said sales are expected to fall 40 pct to 1,700
billion yen for the fifth consecutive year-on-year drop. This
year's fall was due to lower selling prices for end-users,
which more than offset the yen's appreciation. The company will
retain six yen dividend for 1986/87.


.I 8380
.C
oilseed;soybean;
.W
TAIWAN TO TENDER FOR 27,000 TONNES U.S. SOYBEANS.
    TAIPEI, March 11 - The joint committee of Taiwan's soybean
importers will tender March 12 for a 27,000 tonne cargo of U.S.
Soybeans for March 20 to April 5 delivery, a committee
spokesman told Reuters.
    Taiwan's soybean imports in calendar 1987 are provisionally
set at 1.81 mln tonnes compared with a revised 1.74 mln tonnes
imported last year.
    The 1.74 mln tonne figure was revised from 1.76 mln tonnes.
    Taiwan imports all its soybeans from the United States.


.I 8381
.C
earn
.W
BEJAM GROUP PLC <BJAM.L> 27 WEEKS TO JANUARY 3.
    LONDON, March 11 -
    Shr 5.95p vs 4.41p
    Div 2.25p vs 2.0p
    Pre-tax profit 11.6 mln vs 9.1 mln
    Tax 4.2 mln vs 3.6 mln
    Turnover 256.3 mln vs 185.3 mln
    Note - company said it was unlikely second-half profits
will show same rate of increase as first. But it had great
confidence in prospects for future growth.


.I 8382
.C
iron-steel
.W
NIPPON STEEL, INLAND DISCUSSING U.S. JOINT VENTURE.
    TOKYO, March 11 - Nippon Steel Corp <NSTC.T> and <Inland
Steel Co> of the U.S. Are negotiating to set up a joint steel
venture in Indiana, a Nippon Steel spokesman said, declining to
give more details.
    Several local newspapers reported the joint venture would
be capitalised at 150 mln dlrs, owned 60 pct by Inland and 40
pct by Nippon Steel, and have annual production capacity of one
mln tonnes of steel to supply car makers.


.I 8385
.C
jobs
.W
JAPAN'S JOBLESS SEEN RISING TO 3.3 PCT IN 1987/88.
    TOKYO, March 11 - The yen's rise against the dollar is
expected to boost Japan's unemployment rate to an average 3.3
pct in the 1987/88 fiscal year beginning April 1 from January's
record three pct, the private Nomura Research Institute said.
    The official 1987/88 estimate is 2.9 pct.
    The research arm of Nomura Securities Co forecast
unemployment would exceed two mln by mid-fiscal 1987, against
an estimated 1.75 mln for the current year.
    Nomura urged the government to take pump-priming measures
to help redress trade imbalances and boost employment.
    Employment in manufacturing during fiscal 1987/88 was
predicted to fall 550,000 from the current year due to higher
job losses in the steel, shipbuilding and heavy electrical
machinery sectors, Nomura said.
    Employment in the non-manufacturing sector will continue to
increase, the institute said, without giving figures.


.I 8386
.C
ship
.W
WORK AT CHITTAGONG PORT HALTED BY STRIKE.
    CHITTAGONG, Bangladesh, March 11 - Cargo handling remains
halted at Bangladesh's Chittagong port since nearly 7,000
workers walked out on Monday following a pay dispute, the Port
Workers Association said today.
    Fourteen ships are stranded at the port.
    Port officials said they would meet Association leaders
today to try to resolve the dispute.


.I 8387
.C
earn
.W
CREDITANSTALT-BANKVEREIN <CABV.V> YEAR 1986.
    VIENNA, March 11 -
    Cons banking gp net profit 496.7 mln schillings vs 354.5
mln
    Cons banking gp balance sheet total at year-end 453.4
    Billion schillings vs 425.4 billion
    Parent bank net profit 370.6 mln vs 253.0 mln
    Parent bank balance sheet total 372.5 billion vs 348.2
    Billion
    Parent bank dividend 12 pct vs 10 pct
    Parent bank div payout 363.0 mln schillings vs 247.5 mln


.I 8389
.C
earn
.W
****** Ultramar 1986 net loss 62.1 mln stg vs 71.6 mln profit.
Blah blah blah.

.I 8390
.C
acq
.W
TESCO ASSOCIATE BUYS 4.2 PCT OF HILLARDS.
    LONDON, March 11 - Tesco Plc <TSCO.L> said that <County
Ltd> had yesterday bought on its behalf 2.06 mln shares, or
around 4.2 pct, in <Hillards Plc> for between 302p and 310p a
share.
    Tesco yesterday launched a 151.4 mln stg bid for the north
of England supermarket chain, which Hillards promptly rejected.
    Hillards shares were last quoted at 324p, compared with
last night's close of 313p.


.I 8393
.C
earn
.W
ULTRAMAR PLC <UMAR.L> 1986 YEAR.
    LONDON, March 11 -
    Shr 8.1p loss vs 26.3p earnings
    Div 3.25p making 5.25p vs 10.5p
    Net loss 62.1 mln stg vs 71.6 mln profit
    Operating profit before tax 73.6 mln vs 273.8 mln
    Turnover 1.47 billion vs 1.74 billion
    Cost of sales 1.22 billion vs 1.39 billion
    Gross profit 241.8 mln vs 357.6 mln
    Distribution costs and administrative expenses 152.2 mln vs
    123.1 mln
    Share of profits in associates 17.1 mln vs 68.2 mln
    Other operating income 15.8 mln vs 16.9 mln
    Financing charges 48.9 mln vs 45.8 mln
    Tax 63.9 mln vs 169.7 mln
    Exceptional items 4.9 mln debit vs 5.5 mln debit
    Net results of discontinued operations 15.6 mln debit vs
    20.9 mln debit
    Loss on ordinary activities before minority interest 10.8
    Mln vs 77.7 mln profit
    Minority interest 11.3 mln vs 6.1 mln
    Extraordinary debits 40.0 mln vs nil


.I 8394
.C
earn
.W
******GKN 1986 pretax profit 132.4 mln stg vs 132.7 mln.
Blah blah blah.

.I 8395
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST AT 300 MLN STG.
    LONDON, March 11 - The Bank of England said it forecast a
liquidity shortage of around 300 mln stg in the market today.
    Among the main factors, the Bank said bills maturing in
official hands and the treasury bill take-up would drain 483
mln stg from the system while below target bankers' balances
and a rise in the note circulation would take out 50 mln and
100 mln stg respectively.
    Partially offsetting these, exchequer transactions would
add around 355 mln stg, the Bank added.


.I 8396
.C
money-fx
.W
BELGIAN CENTRAL BANK BUYS CURRENCY TO REPAY DEBT.
    BRUSSELS, March 11 - The Belgian National Bank bought
foreign currencies against francs on the open market in the
week ended March 9, a Bank spokesman said.
    In line with central bank policy he declined to give any
details of the amount bought.
    The foreign currency purchased was used by the Treasury to
repay foreign debt and did not affect the Bank's foreign
exchange reserves. They slipped 394 mln francs to 37.33
billion, mostly due to sales of dollars for Special Drawing
Rights, the spokesman said.


.I 8399
.C
earn
.W
GKN PLC <GKNL.L> 1986 YEAR.
    LONDON, March 11 -
    Shr 28.5p vs 26.6p.
    Final div 8p, making 13p vs 12p.
    Pre-tax profit 132.4 mln stg vs 132.7 mln.
    Net profit befire minorities  81.0 mln vs 74.4 mln.
    Sales 2.06 billion stg vs 2.20 billion.
    Extraordinary debit 36.5 mln vs 20.4 mln.
    Trading surplus after depreciation 145.7 mln stg vs 158.1
    Mln
    Investment and interest income 5.4 mln vs 3.8 mln
    Interest payable 42.5 mln vs 43.9 mln
    Profits from related companies, less losses, 23.8 mln vs
    14.7 mln
    Tax 51.4 mln vs 58.3 mln
    Profit attributable to outside shareholders' interests 12.6
    Mln vs 11.2 mln
    Note - Extraordinary debit included charge for
restructuring auto parts distribution in France and loss of 10
mln stg on sale of steel stock business.
    Trading surplus comprised -
    Automotive components and products 101 mln stg vs 105 mln
    Industrial services and supplies 30 mln vs 21 mln
    Wholesale and industrial distribution 11 mln vs 22 mln
    Steels and forgings four mln vs 10 mln
    By region, Britain contributed 34 mln stg vs 47 mln
    Continental Europe 77 mln vs 56 mln
    U.S.A. 28 mln vs 51 mln
    Rest of world seven mln vs four mln


.I 8401
.C
bop
.W
ECONOMIC SPOTLIGHT - CHINA'S FOREIGN DEBT UP.
    By Mark O'Neill, Reuters
    PEKING, March 11 - China's foreign debt reached 27 billion
dlrs by the end of 1986, but despite an over-exposure to
short-term credits and yen borrowing, China remains very
creditworthy with an improved 1987 export outlook, foreign
bankers and Chinese officials told Reuters.
    Foreign bankers said China's total debt rose sharply from
an estimated 20 billion dlrs at end-1985 to cover increased
import commitments but the debt/equity ratio remains low,
between eight and 10 pct.
    China remains a cautious and popular borrower, they said.
    Zhang Haoruo, vice minister of Foreign Economic Relations
and Trade, said last Friday that China signed foreign loan
agreements for 6.94 billion dlrs last year, 96.6 pct up on
1985, with actual loans amounting to 4.83 billion, up 93 pct.
    Officials said China would borrow 25 to 30 billion dlrs in
the 1986-90 five year plan period, but foreign bankers said
they estimate foreign loans at 30 to 40 billion.
    A Western banker said China's portfolio contains too much
short-term debt and too much of it is denominated in yen as a
result of aggressive lending by Japanese banks and attractive
low interest rates in the Japanese market.
    The strong yen appreciation has cost China dearly and is
likely to make it reduce new yen borrowings, the banker said.
    A Chinese trade official estimated the yen component of the
country's total debt at about 30 pct.
    The Peking representative of a Japanese securities house
said the rapid yen rise had caught China and his firm unawares.
    "Interest rates in Japan are at a historical low, but China,
which will remain an active borrower this year, is likely to go
elsewhere for capital, to get a better currency spread," he
said.
    The Western banker said the excess of short-term loans is
in part a result of China's inexperience in the foreign capital
markets, which it entered only in the early 1980s.
    "Officials do not think of China but of their own department
or firm. Some loans that were entered into did not have the
full backing of the People's Republic of China," he said.
    "The dilemma for China, in foreign borrowing as in other
areas, is to balance central control with giving reasonable
autonomy to firms. It is searching for the mechanisms to
exercise indirect controls," he said.
    The banker said officials have stressed repeatedly over the
past six weeks that China's foreign borrowing will not be
affected by a drive against "bourgeois liberalism," a phrase
meaning Western political ideas, following the dismissal of
Communist Party chief Hu Yaobang on January 16.
    A U.S. Banker said there is no evidence that China's
foreign exchange reserves have fallen below the officially
stated figure of 10 billion dlrs.
    "The Bank of China is both a buyer and a seller in the
market, which would know quickly if it was buying heavily in
advance of an announcement the reserves were down," he said.
    The banker said such buying has not been going on. "Things
are normal. Trade deficits such as China had last year and in
1985 are normal for a country at its stage of development."
    Customs figures show China had a trade deficit of 11.9
billion dlrs in 1986, down from 14 billion in 1985.
    A Ministry of Foreign Economic Relations and Trade official
said this year's outlook for exports, which account for more
than 75 pct of foreign exchange earnings, is much healthier
than a year ago.
    The renminbi has matched the U.S. Dollar fall, he said. It
was quoted at 3.72 today, little changed from 3.7 a year ago.
    The official said China has taken measures to improve its
export performance, including incentive offers to exporters and
the establishment of export production bases.
    "We expect higher prices for our oil exports this year," he
added.
    Official estimates put China's 1986 export losses from the
drop in world oil prices at three billion dlrs.
    A Western diplomat said China's foreign debt needs careful
management but its debt service ratio remains very low at six
to eight pct.
    "We base our assessment not on China's foreign exchange
reserves but on its export performance, just as you assess a
company on its performance, not its bank account," he said.
    He said China performed very well in the export field last
year and remains a very creditworthy country which will have
few difficulties in increasing its borrowing.


.I 8403
.C
earn
.W
ULTRAMAR SAYS FOURTH QUARTER SHOWED IMPROVEMENTS.
    LONDON, March 11 - Ultramar Plc <UMAR.L> said that while
its fourth 1986 quarter had improved from the operational point
of view, several special charges adversely affected results.
    Overall the year had not been a good one, with upstream
operations dramatically hit by the fall in crude oil prices and
downstream operations also affected in the first half by large
losses on inventories.
    But margins improved in the second half and in particular
refining and marketing in Eastern Canada showed a good
recovery.
    The company was commenting on results that showed a net
loss for the year of 62.1 mln stg after a 71.6 mln profit in
1985.
    The fourth quarter charges included a 20.8 mln stg
provision on a retroactive price agreement recently initialled
by Pertamina and Japanese buyers of the company's liquid
natural gas and 4.7 mln for the early months of its ownership
of Gulf Canada's marketing assets.
    Ultramar said it had also included the estimated cost of a
further reorganisation programme, which was partly offset by a
withdrawal of surplus funds from U.S. Pension schemes, and a
13.5 mln stg provision for the estimated cost of selling its
U.S. Flag shipping operation.
    The immediate outlook for crude oil prices was uncertain
although it was unlikely there would be any sizeable increase
in the near term. However, Ultramar said it was optimistic
prices would strengthen over the longer term.
    Its substantial reserves of crude oil and natural gas put
it in a good position to benefit from any price recovery.
    In the meantime, Ultramar's objectives were to improve
profitability by selling or restructuring weak operations while
strengthening core businesses and developing a sound
operational and financial base.
    Proven, probable and possible reserves at end-1986 totalled
about 700 mln barrels net on an oil-equivalent basis.
    Ultramar shares firmed on the announcement to 187p from
181p at last night's close.


.I 8404
.C
acq
.W
QUEENSLAND PRESS BOARD RECOMMENDS MURDOCH OFFER.
    BRISBANE, March 11 - The <Queensland Press Ltd> (QPL) board
said it unanimously recommended the one billion dlr takeover
bid by <Cruden Investments Pty Ltd>, a family company of News
Corp Ltd <NCPA.S> chief executive Rupert Murdoch.
    The 23 dlrs a share cash-only offer is nearly double the
market price before News announced its now-completed bid for
The Herald and Weekly Times Ltd <HWTA.S> in early December and
no other offer is likely, it said in a statement.
    Independent adviser, <Wardley Australia Ltd>, had also
concluded the offer was fair and reasonable, it added.
    QPL is already owned 48.3 pct by HWT.


.I 8405
.C
sugar
.W
EC COMMISSION DECLINES COMMENT ON SUGAR OFFER.
    BRUSSELS, March 11 - The European Community (EC) Commission
declined to give an official reaction to reports that a group
of european operators plan to offer one mln tonnes of sugar
into intervention in protest at Commission export policies.
    However, a spokesman for the Commission confirmed the
offers had been made to intervention agencies in various member
states, and said it would now take up to three weeks for the
agencies concerned to complete all necessary documentation.
    The spokesman said that under current regulations, the EC
would have to accept all the offers if there were no technical
problems.
    The spokesman said the Commission would only have to
reimburse the member state for the cost of buying-in the sugar
after the product was sold out of intervention stores at a
later date.
    He said that at present there was virtually no sugar held
in intervention stores.
    Last year, 45,000 tonnes were sold into intervention and
during the 1984-85 campaign 108,000 tonnes.


.I 8406
.C
money-fx;interest;
.W
INDONESIAN BANKS RAISE INTEREST RATES.
    By Bill Tarrant, Reuters
    JAKARTA, March 11 - A tight money market has pushed
interest rates on three to six month time deposits to between
15 and 18 pct from 13 to 15 pct a month ago, bankers said.
    March is usually a tight month for the money market because
of tax payments and banks' need to attract funds for their
year-end accounts on March 31.
    This year the situation has been made worse by December's
rush to buy dollars by companies and businessmen who feared
imposition of exchange controls. Much of that outflow has yet
to be converted back into rupiah.
    "A lot of small money has come back in, but the big money is
holding out until after April," one U.S. Banker said.
    The tight money policy of Bank Indonesia, the central bank,
is helping to keep rates high.
    Short-term lending rates now average 25 pct a year, with no
prospect they will be lowered soon, the bankers said.
    Central Bank governor Arifin Siregar said earlier this week
that Indonesia could look forward to better economic prospects
in 1987/88, but added the "speculators" who led a run on the
rupiah late last year could again pose problems.
    Indonesia holds general elections on April 23, the first in
five years, and most businessmen expect no new government
economic packages or incentives before then.
    "Some people are nervous about what the government will do
after the election," one banker said. "They normally try to do
things before the IGGI (Inter-Governmental Group on Indonesia)
meeting (in June) to prove they are doing something about the
economy to show they deserve a couple of billion dollars."
    The IGGI, which groups 14 industrialised donor countries
and four agencies, gave Indonesia 2.5 billion dlrs in soft
loans and grants last year.


.I 8410
.C
earn;strategic-metal;
.W
HIGHVELD (HGVJ.J) SEES LOWER 1987 EARNINGS.
    JOHANNESBURG, March 11 - Highveld Steel and Vanadium Corp
Ltd said it expects 1987 earnings will be lower than last
year's previously reported 85 cts a share.
    But profits "will be at a satisfactory level," the company
said in the annual report without giving a specific estimate.
    Highveld said it expects appreciation of the rand will be
offset to some extent by increasing U.S. Dollar prices for its
exports as the year progresses.
    Highveld said measures taken last year by the European
Economic Community and the United States prohibiting all South
African steel products "presents a challenge to management to
place the steel in other areas."
    The company said overall world vanadium consumption in 1987
is expected to be similar to last year although China's role is
still an unknown factor in the total supply-demand situation.
    "World vanadium production capacity is still believed to be
adequate to cater for any foreseeable demand," it added.


.I 8412
.C
palm-oil;veg-oil;
.W
SAUDI ARABIA BUYS 5,000 TONNES RBD PALM OLEIN.
    LONDON, March 11 - Saudi Arabia bought 5,000 tonnes of
refined bleached deodorised palm olein at its import tender
yesterday for April 16/25 shipment at 353 dlrs per tonne cost
and freight Jeddah, traders said.


.I 8417
.C
interest
.W
****** Belgium cuts discount rate to 8.0 pct from 8.50 - official.
Blah blah blah.

.I 8418
.C
earn
.W
PREUSSAG SAYS PAYMENT OF A 1986 DIVIDEND NOT CERTAIN.
    HANOVER, West Germany, March 11 - A spokesman for Preussag
AG <PRSG.F> said it was not yet certain whether the company
would pay a dividend on 1986 results
    He was commenting on a Preussag statement which said
results in 1986 were lower than in 1985. Preussag has
frequently said its results came under further pressure in 1986
following a difficult year in 1985.
    Managing board chairman Guenther Sassmannshausen said in
December the board would prefer to stick to its policy of not
dipping into reserves to pay dividends. The spokesman noted the
final dividend decision rests with the supervisory board.
    The Preussag statement said results fell in 1986 compared
with 1985 because declines in earnings in metals, oil and
shipping were not entirely compensated by positive trends in
the group's other divisions.
    The spokesman said it was not clear whether the domestic
group would show a net profit in 1986, adding this would depend
partly on the level of provisions.
    Preussag cut its 1985 dividend to eight marks from nine
marks on 1984 results after parent company net profit dropped
to 65.0 mln marks from 103.0 mln the year before.
    The Preussag world group made a net loss of 13.1 mln marks
in 1985 after a net profit of 154.5 mln the year before.
Domestic group net profit fell to 77.9 mln from 122.2 mln.
    The statement said its results in 1986 were affected by
unsatisfactory selling prices for metals and oil as well as by
poor use of capacity in the supply ship sector.
    The reduction in natural gas prices in the fourth quarter
of 1986 to reflect earlier falls in oil prices was an
additional factor behind the drop in results.
    Preussag said rationalization measures already introduced
would not begin to take full effect until this year.
    Preussag's domestic group turnover rose to 4.48 billion
marks in 1986 from 4.29 billion in 1985, helped by the first
time consolidation of 951.8 mln marks of turnover from its
majority-owned oil and gas subsidiary C. Deilmann AG.
    Domestic group turnover in the 1986 fourth quarter alone
was 1.1 billion marks, it said without giving comparison
figures.
    Preussag said its domestic crude oil production fell 4.0
pct to 94,400 tonnes in 1986, while foreign oil production rose
to 182,900 tonnes from 174,500 tonnes.
    Preussag said its Amalgamated Metal Corporation Plc (AMC)
subsidiary, whose results are included in the world group
accounts, made an unspecified profit in the fourth quarter of
last year.
    AMC's large losses in 1985, caused principally by the
international tin crisis, were the reason behind the world
group losses that year.


.I 8420
.C
crude
.W
OIL FIRMS CUT 1987 INDONESIAN EXPLORATION SPENDING.
    JAKARTA, March 11 - Foreign oil companies will spend less
on exploration in Indonesia this year than last, budgeting 2.7
billion dlrs for calendar 1987 against 1986 spending of 2.8
billion dlrs, the state oil company Pertamina said.
    Actual spending last year fell short of the budgeted figure
of 3.2 billion dlrs, as oil companies slashed expenditure
because of the crash in world oil prices.
    Jumardi Jukardi, head of Pertamina's coordinating board for
foreign contractors, said foreign companies will drill 110
exploration wells and 431 development wells this year, against
108 and 330 last year.


.I 8422
.C
crude
.W
INDONESIA OIL CONTRACT NEGOTIATIONS END THIS MONTH.
    JAKARTA, March 11 - Negotiations between Indonesia's state
oil company Pertamina and foreign oil contractors on extension
of the standard 30-year production sharing contract will be
concluded by the end of this month, a Pertamina official said.
    Jumardi Jukardi, head of Pertamina's foreign contractors
coordinating board, gave no details about the outcome of the
talks.
    But Pertamina President Abdul Rachman Ramly has said
priority will be given to extending contracts for companies
whose exploration and production contracts expire within the
next seven to 10 years.
    Jukardi, speaking to Indonesian reporters, said the
negotiations would determine whether the 85-15 production
sharing split in favour of Pertamina would be adhered to or
altered in some cases as oil companies are asking for.
    Hardjoko Seputro, spokesman for the Mines and Energy
Ministry, has said that President Suharto has agreed in
principle to extension of the standard 30-year production
sharing contract to reflect better current depressed conditions
on the international oil market.


.I 8424
.C
sugar
.W
TRADE SAYS EC SUGAR TENDER HARD TO FORECAST.
    LONDON, March 11 - Traders here and in Paris said the
results of today's EC white sugar tender are hard to forecast
because of plans by a group of French, West German, Dutch and
Belgian operators to sell one mln tonnes of sugar into
intervention.
    London traders said bids for licences have been reported
between 43.00 and 44.00 Ecus per 100 kilos and if any licences
are granted they are likely to be towards the lower end of that
range, possibly 43.30/43.50 Ecus.
    Traders in Paris said they expect maximum rebates of
between 43 and 43.50 Ecus.
    Other than the Commission releasing no sugar for export,
the likely tonnage is expected to be very small, the London
traders said, while the French sources declined to estimate
volume in view of the psychological impact of the planned sales
into intervention in protest against EC export policies.
    Last week licences for 60,500 tonnes were awarded at a
maximum rebate of 43.147 Ecus.


.I 8425
.C
bop;trade;
.W
KOREA PLANS TO OPEN MARKETS TO EASE WON PRESSURE.
    SEOUL, March 11 - South Korea will further open its market
to help cut its trade surplus with the U.S. And to fight off
pressure to revalue the won against the dollar, a government
spokesman said.
    The spokesman said Korean trade minister Rha Woong-Bae's
stand in Washington yesterday against pressure from industrial
nations to revalue the won underlined the government's
determination to stand firm.
    Rha told the U.S. Chamber of Commerce "Demands that Korea
carry out a drastic and sudden currency revaluation of five or
10 pct are, I believe, extremely ill-advised."
    Deputy prime minister Kim Mahn-Je told a meeting of local
businessmen "The government's policy on the question of
revaluing the won is to maintain a steadfast position."
    Kim said South Korea was ready to move slowly to raise the
won's value because of its heavy foreign debt which stood at
44.5 billion dlrs at the end of 1986.
    Six industrialised nations agreed in Paris last month that
newly industrialising countries, such as South Korea and
Taiwan, should allow their currencies to appreciate.
    But local businessmen have said won/dollar parity has
already reached "a crisis level."
    An official of the Korea Traders' Association (KTA) said if
the won strengthened another five pct, this would mean the loss
of profitability for nearly half of all South Korean exporters.
    "We are determined not to go the way of Latin American
debtor nations which have suspended interest payments of their
debts," the spokesman said. "The only way to keep our good record
is to maintain our exports.+
    The trade minister said yesterday should Seoul revalue the
won suddenly Korea would run "a tremendous trade deficit and
could degenerate into a country, like many other developing
countries, which is reneging on its international obligations."
    The spokesman said South Korea had been gradually
appreciating its currency, ruling out a major revaluation. So
far this year, the won has gone up by 0.8 pct against the
dollar after a 3.34 pct revaluation in 1986.
    He said South Korea was selecting "many" of 122 items on
which Washington recently asked Seoul to lower tariffs to help
narrow its trade surplus with the U.S. No further details were
given.
    Seoul announced in January the lifting of bans on 158
items, including sensitive agricultural products and large
cars, effective from July.
    South Korea posted its first ever current account surplus
last year, due largely to a trade surplus with the U.S. Of 7.1
billion dlrs, against a 4.3 billion deficit in 1985. It earlier
forecast that its current account surplus could reach eight
billion dlrs this year.
    But the government official said the surplus would be held
at around five billion dlrs to avoid further pressure by
industrialised nations to push up the value of its currency.


.I 8427
.C
money-fx
.W
GERMAN CALL MONEY EASES AFTER LIQUIDITY INJECTION.
    FRANKFURT, March 11 - Call money eased to 3.75/80 pct from
3.80/85 yesterday following a net injection of 6.7 billion
marks at a rate of 3.80 pct in fresh funds from this week's
securities repurchase agreement, dealers said.
    But rates were expected to rise toward the end of the week.
    A major tax payment period by banks on behalf of customers,
payments for the federal railways loan stock and repayments of
mark liabilities incurred by foreign central banks with the
Bundesbank in the framework of the European Monetary System
(EMS) are likely to significantly burden the system. Banks
built up minimum reserves today, ahead of the expected outflow.
    The Bundesbank credited banks with a gross 15.2 billion
marks, but some 8.5 billion left the system at the same time as
an earlier securities repurchase pact matured.
    Dealers estimated the EMS related outflow as high as six
billion marks.
    The Bundesbank declined to comment, but a spokesman said
yesterday although the funds now due may be allowed to roll
over, the possibility that other central banks may choose to
redeem them meant a net infusion was needed.
    Dealers forecast tax payments of 25 and 30 billion marks,
but much of it is expected to burden the system only next week.
    Banks' minimum reserve holdings at the Bundesbank totalled
53.6 billion marks on Monday, averaging 54.0 billion over the
first nine days of March.
    Dealers said although the figure was well above an expected
requirement of around 51 billion marks, the expected outflow of
funds was so large that banks might find it difficult to meet
the requirement toward the end of March.
    No securities repurchase agreement is expiring next week,
but dealers said the Bundesbank could offer fresh liquidity if
conditions significantly tighten. "The Bundesbank wants to keep
rates around 3.80 pct," one dealer said.


.I 8430
.C
earn
.W
BTR PLC <BTRX.L> 1986 YEAR.
    LONDON, March 11 -
    Shr 21.2p vs 16.0p
    Div 4.75p making 8.25p vs 5.83p
    Pretax profit 505 mln stg vs 362 mln
    Turnover 4.02 billion vs 3.88 billion
    Tax 128 mln vs 85 mln
    Operating profit 527 mln vs 421 mln
    Operating profit includes -
    Other income 30 mln vs 41 mln
    Financial costs 52 mln vs 100 mln
    Minorities 25 mln vs 16 mln
    Earnings 352 mln vs 261 mln
    Extraordinary credit 78 mln vs 34 mln debit.


.I 8433
.C
jobs
.W
JAPAN'S JOBLESS SEEN RISING TO 3.3 PCT IN 1987/88.
    TOKYO, March 11 - The yen's rise against the dollar is
expected to boost Japan's unemployment rate to an average 3.3
pct in the 1987/88 fiscal year beginning April 1 from January's
record three pct, the private Nomura Research Institute said.
    The official 1987/88 estimate is 2.9 pct.
    The research arm of Nomura Securities Co forecast
unemployment would exceed two mln by mid-fiscal 1987, against
an estimated 1.75 mln for the current year.
    Nomura urged the government to take pump-priming measures
to help redress trade imbalances and boost employment.
    Employment in manufacturing during fiscal 1987/88 was
predicted to fall 550,000 from the current year due to higher
job losses in the steel, shipbuilding and heavy electrical
machinery sectors, Nomura said.
    Employment in the non-manufacturing sector will continue to
increase, the institute said, without giving figures.


.I 8437
.C
interest;money-supply;
.W
SPAIN EXTENDS RESERVE REQUIREMENT.
    MADRID, March 11 - The Bank of Spain has extended the
reserve requirement for banks to their convertible peseta funds
in an attempt to curb speculation in short-term capital which
is currently fuelling money supply growth.
    In a statement issued late last night, the central bank
said convertible peseta accounts, funds which are not subject
to exchange controls, would also be subject to a 19 pct reserve
requirement with effect from Friday.
    Convertible peseta funds had been previously exempt from
reserve requirements.
    The measure comes one week after the central bank raised
reserve requirements on domestic deposits by one percentage
point to 19 pct, also with effect on Friday.
    Banking sources say the high real interest rates on offer
now -- around eight pct for overnight funds -- have attracted a
large influx of speculative foreign capital which is
threatening the government's monetary targets.
    They say this influx is largely responsible for Spain's
principal measure of money supply, the broad-based liquid
assets in public hands (ALP), to have grown by an estimated 17
pct annualised rate in February, compared with January's 8.3
pct rise and an 11.4 pct rise during the whole of 1986. The
target for 1987 is eight pct.
    The Bank of Spain today did not provide assistance funds to
banks in a move to drain excess liquidity from the money
market. Liquidity will be further tightened by the fortnightly
Treasury Bill auction tomorrow and Friday's hike in reserve
requirements, expected to absorb over 200 billion pesetas from
the system.
    The immediate reaction was a hike in interbank interest
rates today to 13.75/14.00 pct from yesterday's 13.46 pct
average for deposits.
    Bank of Spain officials said this was an understandable
response "given that the market is short of funds."
    But banking sources noted that a continued rise in interest
rates would neutralize the central bank's attempts to curtail
short-term speculation with foreign funds by making the Spanish
money markets more attractive.


.I 8439
.C
money-fx
.W
HUNGARY TO DEVALUE FORINT AGAINST WESTERN UNITS.
    BUDAPEST, March 11 - Hungary is to devalue the forint by an
average of eight pct against Western currencies, the official
news agency MTI said.
    MTI did not say when the devaluation would become
effective, but it expected new rates to be announced later
today.
    Hungary devalued the forint by a similar amount last
September 23. Western bankers say the forint is more
realistically valued than currencies of Hungary's COMECON
allies.


.I 8441
.C
interest
.W
SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY.
    TOKYO, March 11 - Bank of Japan governor Satoshi Sumita
said there is little room left for the central bank to further
ease its credit policy as interest rates levels are now
approaching their lower limit.
    "The government should instead seek ways of making the best
use of its fiscal policy," he told a press conference.
    His remarks were concerned with a comprehensive economic
stimulative package the government plans to adopt in the coming
days.
    At the recent talks among the six major industrialised
nations in Paris, Japan promised to work out a comprehensive
economic package to boost domestic demand, which in turn would
help increase its imports and reduce its trade surplus.
    Sumita also said the economy will show a gradual upturn in
the second half of the year if the yen remains stable.
    He said there is caution in the foreign exchange market
against a further rise of the yen and mark and this explains
the recent stability in the currency markets. Conflicting
economic indicators from the U.S. Have also been dampening
market activity, he added.


.I 8444
.C
lei
.W
AUSTRALIA LEADING INDEX CONTINUES RISE IN DECEMBER.
    MELBOURNE, March 11 - Westpac Banking Corp and the
Melbourne University Institute of Applied Economic and Social
Research said their leading index of Australian economic
activity rose for the ninth successive month in December.
    The index rose to 134.1 (base 1980) from 129.8 in November
and 122.8 a year earlier, the Westpac-Institute report said.
    Annualised, it rose 13 pct in December against seven pct in
November and one pct a year earlier, based on the ratio of the
latest index to the average over the previous 12 months.
    The report said the index is now 12 points or 9.8 pct above
its trough in March 1986.
    Westpac's chief economist Bob Graham said the consistent
upward trend in the leading index emphasised the need for a
tough mini-budget in May. "An untoward increase in consumption
spending before the balance of payments improves would have
disastrous consequences," he said.
    The coincident index also rose an annualised three pct in
December against zero movement in November and a seven pct rise
a year earlier, Westpac and the Institute said.
    They said this index continued to show the current
recession is shallow and is more likely to involve a slowing in
real growth than an absolute fall in economic activity.


.I 8445
.C
money-fx;yen;trade;
.W
JAPAN CANNOT BEAR FURTHER YEN RISE, MINISTER SAYS.
    TOKYO, March 11 - Japan cannot bear a further rise of the
yen, Foreign Minister Tadashi Kuranari said.
    "A further stronger yen would be a misfortune for Japan and
the Japanese people would not be able to bear such a burden," he
told reporters.
    The minister said he wants to tell U.S. Political leaders
of the sacrifices Japan is making to cut its trade surplus.
    Kuranari was widely expected to fly to Washington tomorrow
for talks focussing on trade. But departure remains uncertain
because of the continuing parliamentary boycott by opposition
parties protesting plans for a new sales tax.
    If the boycott is lifted tomorrow, Kuranari would probably
have to remain in Japan to attend parliamentary discussions on
the government's 1987/88 budget, Japanese officials said.
    Kuranari said both the U.S. And Japan should approach the
trade imbalance in a calm, unemotional manner.
    But, he added, "If the issue of rice is to be raised...I
would mention the feelings of the Japanese people."
    Japanese politicians have said repeatedly the country
cannot bow to U.S. Pressure to liberalize rice imports because
the issue is too sensitive.


.I 8446
.C
money-fx
.W
BANK OF ENGLAND DOES NOT INTERVENE IN MONEY MARKET.
    LONDON, March 11 - The Bank of England said it did not
operate in the money market during the morning.
    Initially, the bank forecast a liqudity shortage of some
300 mln stg for the market today.
    Overnight interbank sterling traded at the 11-1/4 1/8 pct
level for most of the morning while period rates have eased on
the strength of sterling, dealers said. At 1200 gmt, sterling's
trade-weighted index was up 0.6 at 72.7.


.I 8447
.C
interest
.W
U.S. URGES BANKS TO WEIGH PHILIPPINE DEBT PLAN.
    By PETER TORDAY, Reuters
    WASHINGTON, March 11 - The U.S. is urging reluctant
commercial banks to seriously consider accepting a novel
Philippine proposal for paying its interest bill and believes
the innovation is fully consistent with its Third World debt
strategy, a Reagan administration official said.
    The official's comments also suggest that debtors' pleas
for interest rate concessions should be treated much more
seriously by the commercial banks, in cases where developing
nations are carrying out genuine economic reforms.
    In addition, he signaled that the banks might want to
reconsider the idea of a "megabank," where Third World debt would
be pooled, and suggested the administration would support such
a plan, even though it was not formally proposing it. At the
same time, however, the official expressed reservations that
such a scheme would ever get off the ground.
    The Philippine proposal, together with Argentine
suggestions that "exit bonds" be issued to end the troublesome
role of small banks in the debt strategy, would help to
underpin the flagging role of private banks within the plan,
the official said in an interview with Reuters.
    "All of these things would fit within the definition of our
initiative as we have asked it and we think any novel and
unique approach such as those should be considered," said the
official, who asked not to be named.
    In October 1985, Washington outlined a debt crisis strategy
under which commercial banks and multilateral institutions such
as the World Bank and the International Monetary Fund (IMF)
were urged to step up lending to major debtors nations.
    In return, America called on the debtor countries to enact
economic reforms promoting inflation-free economic growth.
    "The multilaterals have been performing well, the debtors
have been performing well," said the official. But he admitted
that the largest Third World debtor, Brazil, was clearly an
exception.
    The official, who played a key role in developing the U.S.
Debt strategy and is an administration economic policymaker,
also said these new ideas would help commercial banks improve
their role in resolving the Third World debt crisis.
    "We called at the very beginning for the bank syndications
to find procedures or processes whereby they could operate more
effectively," the official said.
    Among those ideas, the official said, were suggestions that
commercial banks create a "megabank" which could swap Third World
debt paper for so-called "exit bonds" for banks like regional
American or European institutions.
    Such bonds in theory would rid these banks of the need to
lend money to their former debtors every time a new money
package was assembled, and has been suggested by Argentina in
its current negotiations for a new loan of 2.15 billion dlrs.
    He emphasised that the "megabank" was not an administration
plan but "something some people have suggested."
    Other U.S. Officials said Japanese commercial banks are
examining the creation of a consortium bank to assume Third
World debt. This plan, actively under consideration, would
differ slightly from the one the official described.
    But the official expressed deep misgivings that such a plan
would work in the United States.
    "If the banks thought that that was a suitable way to go,
fine. I don't think they ever will."
    He pointed out that banks would swap their Third World
loans for capital in the megabank and might then be reluctant
to provide new money to debtors through the new institution.
    Meanwhile, the official praised the Philippine plan under
which it would make interest payments on its debt in cash at no
more than 5/8 pct above Libor.
    "The Philippine proposal is very interesting, it's quite
unique and I don't think it's something that should be
categorically rejected out of hand," the official said.
    Banks which found this level unacceptably low would be
offered an alternative of Libor payments in cash and a margin
above that of one pct in the form of Philippine Investment
Notes.
    These tradeable, dollar-denominated notes would have a
six-year life and if banks swapped them for cash before
maturity, the country would guarantee a payment of 7/8 point
over Libor.
    Until now, bankers have criticised these spreads as far too
low. The talks, now in their second week, are aimed at
stretching out repayments of 3.6 billion dlrs of debt and
granting easier terms on 5.8 billion of already rescheduled
debt. The country, which has enjoyed strong political support
in Washington since Corazon Aquino came to power early last
year, owes an overall 27.8 billion dlrs of debt.
    But the official denied the plan amounts to interest rate
capitalisation, a development until now unacceptable to the
banks. "It's no more interest rate capitalisation than if you
have a write down in the spread over Libor from what existed
before," the official said in comments suggesting some ought to
be granted the rate concessions they seek. "Some people argue
that (cutting the spread) is debt forgiveness... What it really
is is narrowing the spread on new money," he added.
    He said the U.S. Debt strategy is sufficiently broad as an
initiative to include plans like the Philippines'.


.I 8448
.C
money-fx;stg;can;
.W
POUND AND CANADIAN DOLLAR CAPTURING ATTENTION.
    By Andrew Stern, Reuters
    CHICAGO, March 11 - Interest in the currency futures market
has shifted to the soaring British pound and the potentially
explosive Canadian dollar, and away from the dull Continental
and Japanese currencies, analysts said.
    The June pound, which added 6.3 cents over the past
week-and-a-half to reach a new contract high of 1.5930 to the
dollar on Monday, has spawned a new-found speculative boom.
    "Brokers have to push their clients somewhere...and
technically, the pound is in the best shape," PaineWebber
analyst Jason Gillard said.
    "We've tried to take a bullish approach to the pound, and
we're going to stay with that, there's no reason to change,"
Smith Barney analyst Craig Sloane said.
    Many traders took on long pound/short West German mark
futures positions, although some of those cross-trades were
liquidated yesterday, Sloane said.
     The fundamental keys to the pound's rise have been
relatively high U.K. interest rates and a vague optimism
surrounding the British economy, analysts said.
    "Money seems to be chasing yields," William Byers, of Bear
Stearns, said of the 10-1/2 pct U.K. base lending rate.
    Many analysts are skeptical about further gains in the
pound, on the inference that the Bank of England will seek to
relieve upward pressure on the currency by pushing down
interest rates after the nation's budget is released March 17.
    The budget itself could have an impact, depending on how
well it is received, but analysts say relative interest rates
and oil income remain the main influences on the currency.
    However, the market may be able to absorb lower U.K.
interest rates, as it has done when other countries have cut
their discount rates, and extend the pound's rally, Sloane
said.
    The Canadian dollar has not been rising like the pound, but
Sloane and other analysts cautiously predicted a big move soon.
    The sideways price pattern in the June contract, with
smaller and smaller price ranges, has formed a "bull flag" on
price charts, technically-oriented analysts said.
    "It makes for an explosive type of situation that often
leads to a breakout," in this case to the upside, Sloane said.
    Byers agreed there was potential for the June Canadian
dollar to rally above the 77.00 cent level from the most recent
close at 74.80 cents to the U.S. dollar.
    "At this stage of the game I'd call the market long-term
positive, but for the technical burden of proof you need a
close above (the previous contract high of) 75.25," Byers said.
    As to the traditionally more active currencies, stability
was the catchword and reluctance the watchword among analysts.
    Sloane said it was important that June Swiss francs and
June German marks held above support at 0.6400 and 0.5400,
respectively, closing at 0.6438 and 0.5430.
    Yesterday's rebound showed the market was still very
respectful of the Paris accord, and the threat of central bank
intervention by the G-5 nations plus Canada.
    "We may still probe to see what the parameters are," Byers
said, "but people are very reluctant because they don't know
where the central banks will be (to intervene)."
    Gillard said the mark could drop to a previous price
consolidation area around 0.5250 based on the profoundly
sluggish West German economy, but that he would be a buyer at
that level.


.I 8451
.C
earn
.W
******NEW WORLD PICTURES TO HAVE GAIN FROM SALE OF FIVE PCT OF TAFT BROADCASTING.
Blah blah blah.

.I 8452
.C
interest
.W
JAMAICA AGREES DRAFT BANK DEBT RESCHEDULING.
    NEW YORK, March 10 - Jamaica agreed in principle with its
bank advisory committee on a rescheduling of 181 mln dlrs of
foreign commercial bank debt falling due between 1987 and 1989,
the Jamaican Information Service said.
    Repayments on the debt will be stretched out over 12 years
with 8-1/2 years' grace at 1-1/4 percentage points over the
London Interbank Offered Rate, Libor. The margin on previously
restructured debt also will be cut to 1-1/4 point from 2-1/2.
    The package should save Jamaica about 3.3 mln dlrs a year.
    Prime Minister Edward Seaga, who led the Jamaican
delegation, called the terms very favourable to his country.
    The agreement in principle with the bank advisory committee
led by the Bank of Nova Scotia <BNO.TO> comes five days after
Jamaica successfully concluded a 125.5 mln dlr rescheduling
accord with the Paris Club of creditor nations.
    That pact in turn followed the International Monetary Fund
(IMF)'s approval on March 5 of a 85 mln special drawing rights
standby arrangement and a 40.9 mln sdr drawing under the
compensatory financing facility.
    Of Jamaica's foreign debt of 3.3 billion dlrs only 12 pct
is owed to commercial banks, and Seaga yesterday reaffirmed the
government's policy of not seeking new bank loans.
REUTER...^M

.I 8453
.C
palm-oil;oilseed;veg-oil;soybean;coconut-oil;
.W
VEGETABLE OILS MAY TIGHTEN DESPITE SEED SURPLUS.
    EDMONTON, Alberta, March 11 - Lower production of coconut
and palm oils could lead to a decline in vegetable oil stocks
this year despite growing supplies of oilseeds, senior oilseeds
analyst for Merrill Lynch Capital Markets Mario Balletto said.
    Balletto told a conference of Canadian farmers at Alberta
Agriculture's annual farm outlook conference that the world
vegetable oil situation is one of potentially tight supplies.
    "Prices for edible oils appear to have more upside
potential reflecting strong world demand and an unprecedented
decline in the production of tree oils," Balletto said.
    Balletto estimated production of palm, coconut and palm
kernel oils this year at 8.5 mln tonnes, down from 9.1 mln
tonnes last year, enough to offset higher oilseed output.
    He estimated total vegetable oil production this year at
33.4 mln tonnes, up from 33.0 mln last year, and disappearance
at 34.0 mln tonnes, up from 32.6 mln.
    Unless oilseed crushing increases sharply, he said,
disappearance of vegetable oils could exceed production by
600,000 tonnes, the largest deficit since 1976.
    "If world protein meal demand stagnates, thus limiting the
crush of soybeans ... the need for serious supply rationing in
the edible oils sector could develop," he said.
    "This would be relatively favorable for the prices of high
oil yielding seeds," Balletto said.
    Oilseeds, on the other hand, remain at depressed prices
because of burdensome supplies, he said.
    World ending stocks of oilseeds are estimated to increase
for the fourth straight year to a record 28.4 mln tonnes,
compared with 25.4 mln last year.
    The increase should result from lower disappearance, as
production is expected to fall to 184.0 mln tonnes from 185.7
mln last year, he said.
    World soybean production in 1987 totalled a record 98.9 mln
tonnes, up from 90.6 mln the previous year, Balletto said,
while production of other oilseeds was lower.
    Higher soybean production in South America and Europe made
up for lower production in the United States, he said.
    Soybeans account for the bulk of the surplus, and U.S.
stocks make up most of those, Balletto said.
    The Commodity Credit Corporation owned 12.7 mln tonnes,
about half of the world soybean surplus, he said.
    Since 1983-84, he said, world oilseed stocks have increased
13.1 mln tonnes.
    "During the same period, U.S. soybean stocks increased 12.1
mln tonnes, becoming the dumping ground of the entire world
surplus, courtesy of the CCC and highlighting the artificially
high prices caused by the U.S. loan program."
    "Soybean prices and, to a great extent, world oilseeds
prices are likely to be dominated by the loan program, as long
as the U.S. soybean surplus continues.
    For the 1987 crop, he said, prices are likely to hover in a
range tied to the U.S. loan program.
    "Upside potential for prices is limited by the huge supply
overhang while strong underlying support is provided by the
U.S. loan rate."
    The problem is likely to become worse as the artificially
high prices encourage producers in South America, Canada and
Australia to shift from grains to oilseeds, Balletto said.


.I 8454
.C
bop
.W
PORTUGUESE TRADE DEFICIT NARROWS IN 1986.
    LISBON, March 11 - Portugal's trade deficit narrowed in
1986 to 336.5 billion escudos from 354.8 billion in 1985,
according to provisional National Statistics Institute figures.
    Imports totalled 1,412.6 billion escudos and exports
1,076.1 billion compared with 1,326.5 billion and 971.7 billion
in 1985.
    Expressed in terms of dollars, imports rose 21.2 pct and
exports 26.1 pct and the trade deficit increased by 7.8 pct.
    In its first year as a member of the European Community,
Portugal recorded a deficit of 98.1 billion escudos in its
trade with the other Community states compared with a deficit
of 2.4 billion escudos in 1985.
    Imports from the EC in 1986 totalled 830.2 billion escudos,
while exports to the Community were 732.1 billion, compared
with 609.5 billion and 607.1 billion the previous year.
    Portugal's deficit with Spain was 83.2 billion escudos
against 57.7 billion in 1985, with Italy it was 70.4 billion
against 30.3 billion, and with West Germany 40.5 billion
against 19.1 billion.


.I 8455
.C
interest
.W
BRAZIL'S GROS TO MEET BANKS ON TRADE LINE ISSUE.
    NEW YORK, March 11 - Brazil's central bank governor
Francisco Gros will meet senior commercial bankers here today
in a new attempt to defuse the anger generated by the country's
unilateral suspension of interest payments on 68 billion dlrs
of foreign commercial bank debt, bankers said.
    Gros will meet representatives of Citibank, the head of
Brazil's bank advisory committee, and of co-heads Morgan
Guaranty Trust Co and Lloyds Bank Plc.
    High on the agenda will be banks' complaints about Brazil's
accompanying freeze on some 15 billion dlrs of short-term trade
and interbank lines, the bankers said.
    Brazil's several hundred creditor banks worldwide agreed
last March to extend the credit lines until March 31, 1987, as
part of a 31 billion dlr financing package.
    Bankers said the looming expiry of this commitment, coupled
with Brazil's freeze, raised a spate of technical and legal
questions that the banks want to discuss with Gros.
    They said they face problems because of the freeze
requirement that any payment due to be made by a Brazilian bank
under the trade facility must be deposited instead with the
central bank. This means foreign bankers cannot easily switch
their credit lines from one borrower to another.
    The requirement to deposit with the central bank has also
meant Brazilian banks have been able to negotiate lower
interest-rate spreads, because foreign banks would rather
accept a reduced margin than see their money deposited with the
central bank.
    "It's caused a lot of ill-will with the banking community,"
one banker said.
    Gros is also expected to brief the banks on the results of
a 10-day tour of Europe and Japan that he and finance minister
Dilson Funaro have just completed to seek official support for
Brazil's debt stance.


.I 8456
.C
earn
.W
SERVICE RESOURCES CORP <SRC> 4TH QTR NET.
    NEW YORK, March 11 -
    Oper shr profit five cts vs loss 1.71 dlrs
    Oper net profit 196,000 vs loss 2,388,000
    Sales 40.5 mln vs 43.2 mln
    Avg shrs 2,212,000 vs 1,482,000
    Year
    Oper shr profit 71 cts vs loss 6.24 dlrs
    Oper net profit 1,799,000 vs loss 8,991,000
    Sales 154.5 mln vs 145.0 mln
    NOTE: Net excludes losses from discontinued operations of
712,000 dlrs vs 2,843,000 dlrs in quarter and 1,972,000 dlrs vs
10.6 mln dlrs in year.
    1986 net excludes extraordinary loss 1,167,000 dlrs in
quarter and gain 628,000 dlrs in year.
    1986 year net includes gain one mln dlrs from sale of
building and gain 3,200,000 dlrs from termination of pension
plan.


.I 8458
.C
earn
.W
TELEPHONE AND DATA SYSTEMS INC <TDS> 4TH QTR NET.
    CHICAGO, March 10 -
    Oper shr 22 cts vs 22 cts
    Oper net 2,058,000 vs 2,129,000
    Revs 44.5 mln vs 35.7 mln
    Avg shrs 9,589,000 vs 9,348,000
    Year
    Oper shr 94 cts vs 94 cts
    Oper net 8,889,000 vs 8,570,000
    Revs 155.0 mln vs 123.4 mln
    Avg shrs 9,450,000 vs 9,174,000
    NOTE: Net excludes discontinued operations gain 1,637,000
dlrs vs loss 720,000 dlrs in quarter and gain 4,679,000 dlrs vs
loss 720,000 dlrs in year.
    1986 net both periods includes charge 865,000 dlrs from
repal of investment tax credits.


.I 8460
.C
acq
.W
NEW WORLD PICTURES <NWP> SELLS TAFT <TFB> STAKE.
    LOS ANGELES, March 11 - New World Pictures Ltd said it sold
456,900 shares or about five pct of Taft Broadcasting Co common
stock for a gain of 17.8 mln dlrs.
    The company said in a brief statement that it acquired the
stock in late 1986.  It gave no further details and company
officials were not immediately available for comment.
    On Friday, Taft vice chairman Dudley S. Taft and
Narragansett Capital Inc <NARR> offered to acquire Taft for 145
dlrs per share.  Dudley Taft and his family have owned 12 pct
of the company.
    An investment group leds by Robert M. Bass, one of the Bass
brothers of Fort Worth, Texas, has been reported as owning
about 25 pct of Taft stock, and <American Financial Corp>
chairman Carl Lindner has been reported to own about 16 pct. 
Both Bass and Linder have acquired Taft shares in recent months.


.I 8466
.C
trade
.W
SOVIET ECONOMIST SEES FEW GAINS IN U.S. TRADE.
    NEW YORK, March 11 - There is little chance Soviet exports
to the United States will rise in 1987, but Moscow's current
trade reforms should result in more trade in manufactured goods
in future, a Soviet economist said.
    Sergey Frolov, chief economist at Amtorg Trading Corp, an
agent for Soviet trade organisations and industries, told a
U.S.-USSR business meeting the Soviet Union produces few items
that western nations want.
    But reforms, including upgrading the quality of goods and
allowing joint ventures with foreign firms, will encourage
modest export gains in future.
    Frolov said the Soviet Union exported 500 mln dlrs worth of
goods to the United States in 1986 and imported 1.5 billion
dlrs worth. He gave no trade forecast for 1987.
    But he said that even if all obstacles were removed, total
trade between the two countries would remain between two and
three billion dlrs a year.
    "The post-detente embargoes have taught the USSR to limit
its trading with the U.S.," he said.


.I 8467
.C
money-fx
.W
SWISS SIGHT DEPOSITS FALL 2.88 BILLION FRANCS.
    ZURICH, March 11 - Sight deposits of commercial banks at
the Swiss National Bank fell 2.88 billion Swiss francs in the
first 10 days of March to 7.65 billion, the National Bank said.
    Foreign exchange reserves rose 3.30 billion francs to 33.94
billion.
    Sight deposits are a major indicator of money market
liquidity in Switzerland.
    The National Bank said banks paid back 5.5 billion francs
of central bank credit taken out at the end of February for the
end-month liquidity requirement.
    This drain was offset in part by new currency swaps, which
had the effect of increasing the National Bank's foreign
exchange holdings.
    Bank notes in circulation fell 309.1 mln francs to 24.49
billion, and other deposits on call -- basically government
funds -- rose 1.06 billion to 2.10 billion.


.I 8469
.C
crude
.W
ECUADOR CRUDE OIL EXPORTS STOPPED FOR FIVE MONTHS.
    QUITO, March 11 - Ecuador needs 120 mln dlrs to repair the
damage to its oil export pipeline caused by last week"s
earthquake, which will stop crude exports for five months,
energy and mines minister Javier Espinosa Teran said.
    Espinosa said yesterday the pipeline, which carries crude
from jungle fields to the Pacific Ocean coast of Balao, would
be repaired with the help of Texaco Inc <TX.N> and a Mexican
and an Argentine firm.
    President Leon Febres Cordero said two days ago that
Ecuador, an OPEC member, would have to suspend crude exports
for four months due to the quake.
    Oil traditionally accounts for up to two-thirds of
Ecuador's total exports and as much as 60 pct of government
revenues.
    Deputy energy minister Fernando Santos Alvite said Ecuador
would have to import six to seven mln barrels of crude oil to
meet its needs until the line was repaired.
    The Ecuadorean minister at the Presidency, Patricio
Quevedo, told reporters that Venezuela will lend Ecuador five
mln barrels of crude, which would repaid in kind after a
180-day period.
    He added the Caracas-based Andean Development Corp had
granted a loan of 11.7 mln dlrs towards repairing the pipeline,
50 km of which had been damaged in the quake.
    In Quito, Foreign Minister Rafael Garcia Velasco yesterday
summoned ambassadors from about 40 countries to whom he issued
appeal for emergency aid for the country. Only three countries,
the U.S., Colombia and Venezuela, had offered assistance.


.I 8470
.C
earn
.W
SOUTHLIFE HOLDING CO <SLHC> 4TH QTR NET.
    NASHVILLE, Tenn., March 11 -
    Oper shr seven cts vs 20 cts
    Oper net 347,855 vs 787,117
    Revs 6,748,868 vs 6,849,499
    Avg shrs 5,391,666 vs 4,277,157
    Year
    Oper shr 56 cts vs 46 cts
    Oper net 2,617,528 vs 2,003,661
    Revs 27.1 mln vs 27.3 mln
    Avg shrs 4,763,793 vs 3,377,157
    NOTE: Net excludes realized gains on investments of 925,576
dlrs vs 577,389 dlrs in quarter and 1,776,341 dlrs vs 797,932
dlrs in year.


.I 8472
.C
coffee
.W
ALGERIA REGULATES USE OF COFFEE ADDITIVES.
    ALGIERS, March 11 - The Algerian authorities have regulated
the addition of chickpeas and barley used to make imported
coffee go further, the official APS news agency reported.
    Taking advantage of scarcity, private roasters were selling
ground coffee mixtures which were 75 pct non-coffee, it said.
Since the beginning of March, the coffee market has been
strictly regulated by the state food marketing monopoly Enapal.
    Now a third of imported coffee will be sold as pure beans
and two thirds as a ground mixture with a choice of 30 pct
chickpeas or 30 pct barley. In March private dealers will
handle 2,050 tonnes of pure coffee and Enapal 6,050 tonnes of
mixtures.


.I 8476
.C
crude
.W
TALKING POINT/OIL SERVICES TURNAROUND SEEN.
    By Bernice Napach, Reuters
    NEW YORK, March 11 - The oil services industry is on the
verge of a recovery because of rising crude prices, oil
industry analysts said.
    The analysts, who issued buy recommendations on some
stocks, said the recovery in oil services should begin in the
second half of 1987, after drilling activity bottoms out in the
first half, and continue into the next decade.
     "People, however, cannot afford to wait for drilling to go
up to start buying," said Sandi Haber Sweeney, senior research
analyst at Sanford C. Bernstein and Co Inc.
    Among the recommended buys are Schlumberger Ltd <SLB>,
Halliburton Co <HAL>, Dresser Industries <DI>, Baker
International <BKO>, and McDermott International Inc <MDR>,
which may be the target of a takeover by Harold Simmons, a
Dallas-based investor.
    Analysts said although major oil companies are increasing
exploration and development overseas, they expect the pickup in
oil services will begin in the U.S.
    "Activity in the U.S. is so depressed it should move up
faster," said Vishnu Sharp of Goldman Sachs.
    The number of active oil drilling rigs in the U.S. was 766
last week compared with 1,212 rigs one year ago, Huges Tool Co
<HT> figures show.
    The average number of working rigs in the U.S. for 1987 is
projected at 978 versus 964 in 1986, according to Ike Kerridge,
vice president of stockholder relations at Hughes Tool. "The
first significant pickup in drilling activity will occur in the
second half of 1988," Kerridge said.
    Overseas drilling activity is expected to follow a similar
pattern, Kerridge said.
    "Halliburton is the best value," said Jeffrey Freedman,
vice president at Smith Barney, Harris and Upham Inc, adding
the company controls the greatest amount of liquidity of common
stock market value, is diversifed in non-oil field businesess,
and has the lowest multiple of stock price to operating cash
flow including debt.
    Schlumberger is Freedman's second favorite oil service
stock.
    "Schlumberger is expected to continue to be the dominant
technical leader in the industry," Freedman said.
    "Schlumberger's management shift, asset restructuring,
including a pending merger of Fairchild Semiconductor, and its
considerable cash horde sets the stage for the company to
maximize its significant industry advantage and capitalize on
the project upturn in exploration and development activity,"
according to a report by George Gaspar, first vice president at
Robert W. Baird and Co Inc.
    Gaspar estimates earnings per share for Schlumberger at 25
cts for 1987 and one to 1.75 dlrs in 1988 compared with 20 cts
in 1986 excluding a fourth quarter special charge of 1.87
billion dlrs.
    Bernstein's Sandi Sweeney is recommending a group of oil
service companies and said choosing among them is difficult.
Her favorite is Baker International, which is involved in a
possible merger with Hughes Tool Co.
    Dresser Industries will also benefit from the recovery but
possibly not as much as other companies because it is not a
pure service company, Sweeney said.
    Dresser is expected to improve profitability owing to cost
reductions and streamlined operations, including the sale and
leaseback of its headquarters, said Swarup.


.I 8477
.C
earn
.W
CREDITANSTALT SEES HIGHER 1987 DIVIDEND.
    VIENNA, March 11 - Creditanstalt-Bankverein <CABV.VI> is
likely to raise its 1987 dividend from the 1986 payment of 12
pct of share capital, deputy general-director Guido
Schmidt-Chiari said.
    The 1985 dividend was 10 pct, unchanged from the previous
year and Schmidt-Chiari noted that the parent bank's share
capital had risen to 3.1 billion schillings at the end of 1986
from 2.7 billion a year earlier.
    Schmidt-Chiari made the forecast at a news conference when
the bank announced a 1986 consolidated banking group net profit
of 496.7 mln schillings for 1986, against 354.5 mln in 1985.
    Schmidt-Chiari did not elaborate on his dividend forecast.
    The banking group's consolidated balance sheet total rose
to 453.4 billion schillings at year-end from 425.4 billion.
    General director Hannes Androsch said higher investment
would lead to continuing growth in profits in future. Last
year's better profits had resulted from improvements in
services provided by the bank and also in profits on schilling
lending.
    Schilling lending had grown last year and interest rate
margins had also improved but remained unsatisfactory when
compared with those in other countries, he said.
    Increased provisions for possible bad debts at home and
abroad, particularly in Latin America, had lowered profits,
Androsch said, but declined to give an exact figure.
    Schmidt-Chiari said that foreign lending business had
fallen significantly due to exchange rate fluctuations,
removing some 22 billion schillings from the balance sheet
total.
    In an attempt to generate more foreign business,
representative offices would be opened this year in Tokyo, Hong
Kong, Moscow and Prague. Androsch welcomed government plans to
abolish legal controls on foreigners buying voting shares and
drawing dividends.
    Preference shares of state-controlled Creditanstalt rose
eight schillings on the Vienna Bourse today to 2,008. Brokers
said improved results had been widely expected by investors.
    Androsch said industrial holdings had performed better in
1986 than in previous years, giving a return on investment of
2.6 pct compared with 1.3 pct in 1985. Creditanstalt, Austria's
largest bank, holds majority interests in 10 medium-sized and
large Austrian companies.
    But he forecast its biggest industrial subsidiary, Steyr
-Daimler-Puch AG <SDPV.VI> would return a 1987 result similar
to the expected 1986 operating loss of 700 mln schillings.


.I 8478
.C
acq
.W
CPC <CPC> TO SELL UNIT TO HI-PORT <HIPT>.
    ENGLEWOOD CLIFFS, N.J., March 11 - CPC International Inc
said it has agreed in principle to sell its Peterson/Puritain
Inc subsidiary to Hi-Port Industries Inc.
    CPC said the sale is not expected to have a significant
impact on its earnings and is subject to approval by boards of
both companies.  Terms were not disclosed.
    Peterson/Purittan is a contract packager of personal care
and household products.


.I 8482
.C
earn
.W
PULITZER PUBLISHING CO <PLTZC> 4TH QTR NET.
    ST. LOUIS, March 11 -
    Shr 47 cts vs 40 cts
    Net 4,258,000 vs 5,942,000
    Revs 92.6 mln vs 77.1 mln
    Avg shrs 8,977,000 vs 15.0 mln
    Year
    Shr 1.22 dlrs vs 1.34 dlrs
    Net 16.4 mln vs 20.0 mln
    Revs 329.1 mln vs 272.1 mln
    Avg shrs 13.5 mln vs 15.0 mln
    NOTE: Interest expense 4,384,000 dlrs vs 545,000 dlrs in
quarter and 6,979,000 dlrs vs 2,425,000 dlrs in year.
    1986 year net reflects undisclosed amount of expenses for
defense of takeover effort.


.I 8483
.C
acq
.W
******HUGHES TOOL SAYS IT APPROVES REVISED TERMS FOR MERGER WITH BAKER INTERNATIONAL.
Blah blah blah.

.I 8484
.C
crude
.W
OPEC REAFFIRMS COMMITMENT TO FIXED PRICES, CEILING.
    By James Jukwey, Reuters
    LAGOS, March 11 - OPEC has reaffirmed its commitment to
fixed crude oil prices of around 18 dlrs a barrel and an
overall output ceiling of 15.8 mln barrels per day (bpd) to
defend prices, its president Rilwanu Lukman said.
    He told a news conference here "After due consultation with
my colleagues in OPEC, I hereby wish to emphasize that Nigeria
and all member countries of OPEC remain determined to uphold
the December agreement by adhering strictly to their various
quotas and official selling prices."
    Lukman added no extraordinary OPEC conference was planned.
    "We are in a position to re-confirm that, despite misleading
news in foreign media to the contrary, ... OPEC member
countries as a whole produced below their agreed quota in the
month of February," Lukman, who is Nigerian oil minister, said.
    Lukman put the overall OPEC output shortfall in February at
900,000 bpd and said this was as a result of their firm
determination to defend official selling prices of 18 dlrs
agreed upon last December in Geneva.
    The December agreement set an overall output ceiling for
OPEC of 15.8 mln bpd for first half 1987 and restored fixed
prices as from February 1 around a reference point of 18 dlrs.
    Oil prices rallied immediately after the Geneva accord but
fell again last month on reports that OPEC was producing more
than the agreed level.
    "The idea was to suggest that OPEC's agreement would not
hold and this caused some customers to hold back purchases of
OPEC oil and resort to destocking to meet their needs," Lukman
said.
    He said the 900,000 bpd shortfall last February was based
on the verified figure for 10 out of OPEC's 13 members, adding
that Nigeria alone had a shortfall in production of 100,000
bpd.
    Iraq disassociated itself from the December agreement,
while the production figures of Ecuador and the United Arab
Emirates needed to be verified, Lukman said.
    "If that is the price we have to pay to make the agreement
succeed, we are ready ... OPEC is not changing its price level
of 18 dlrs," the group's president said.
    He said the OPEC price differentials committee meeting
formerly postponed to April had been put off indefinitely.
    "Furthermore, no extraordinary meeting of the conference is
at the moment contemplated since most agreements reached in
December are being adhered to," he said.
    Asked if the committee did not need to meet soon to narrow
the gaps in the prices of the various OPEC crudes -- fixed in
relation to the 18 dlr benchmark -- Lukman replied "We consider
the defence of our prices much more crucial than differentials."
    Lukman said OPEC was aware that consumers had heavily drawn
on stocks of both crude oil and refined products to levels well
below this time last year and soon they would return to the
market in search of crude.
    "We don't see that there is going to be any difficulty in
maintaining the 18 dlr price throughout the rest of the year,"
Lukman said.
    The OPEC president praised non-OPEC oil producers, which he
said had contributed to the group's efforts to stabilise
prices, but he criticised Britain for maintaining its long-held
view not to do anything to help the market.
    "We are quite confident, however, that in the long-term with
two-thirds of the world's reserves in OPEC hands, the future is
ours. We will use that advantage responsibly," he said.
    Lukman described the disruption in Ecuador's output
following an earthquake as tragic, but refused to say if the
South American country would be allowed a higher output quota
when it recovered from the disaster.


.I 8485
.C
ship
.W
DUTCH PORT UNION TO MEET PARLIAMENTARIANS TODAY.
    ROTTERDAM, March 11 - Dutch port and transport union, FNV,
is presenting its case against 800 planned redundancies in
Rotterdam's general cargo sector to parliament's standing
committee on social affairs today, a union spokesman said.
    With 285 of the 4,000-strong workforce on strike, the union
will tell the committee the government has a duty to help solve
the dispute that has been disrupting the general cargo sector
for more than seven weeks, the spokesman added.
    The union will also take its case against the redundancies,
350 of them planned for this year, to a court in Amsterdam
tomorrow, he added.


.I 8486
.C
acq
.W
QINTEX AGAIN EXTENDS PRINCEVILLE <PVDC> OFFER.
    NEW YORK, March 11 - <Qintex America Ltd> said it is again
extending its offer of 13 dlrs a share for 3.3 mln Princeville
Development Corp shares until today from yesterday.
    At midnight yesterday, 7,242,117 Princeville shares had
been tendered, up from 5,887,165 shares 24 hours earlier.
    Qintex said it is extending the offer to allow Princeville
to comply with federal law restricting the ownership of U.S.
airlines by non-U.S. citizens and to finalize the terms and
conditions of the letter of credit or bank guarantee required
under the previously announced acquisition agreement.
   


.I 8487
.C
gold;silver;
.W
ST. JOE GOLD <SJG> TO DEVELOP MINE.
    CLAYTON, Mo., March 11 - St. Joe Gold Corp said it plans to
proceed with development of its Golden Patricia gold property
in northwestern Ontario.
    It said about five mln dlrs will be spent to continue
underground development and obtain operating permits and
another 10.2 mln dlrs is expected to be required to complete
underground development, construct a mill and provide the
infrastructure needed to put the mine into commercial
production.
    St. Joe Gold said if the necessary operating permits were
granted in time, it would start gold production in the second
half of the year ending October 31, 1988 at an annual rate of
about 40,000 troy ounces.
    The company said the property is estimated to contain over
500,000 troy ounces of gold, and the initial mining project
covers only seven of 192 claims, with drill-indicated reserves
of 293,000 short tons grading 0.88 troy ounce of gold per ton.
    It said initial mine output is expected to be about 150
tons of ore daily.
    St. Joe Gold said the Golden Patricia vein has not been
tested at depth or along strike to the east and west and
exploration is continuing on the Golden Patricia property and
the adjacent wholly-owned Muskeg Lake property.
    The company also said its Richmond Hill gold and silver
deposit in the Carbonate district of western South Dakota has
been shown by drilling to contain about 3,900,000 tons grading
0.055 troy ounce of gold and 0.23 troy ounce of silver per ton.
 It said preliminary results are encouraging and a feasibility
study is nearing completion.


.I 8488
.C
earn
.W
NOVELL <NOVL> SETS TWO FOR ONE STOCK SPLIT.
    SANTA CLARA, Calif., March 11 - Novell Inc said its board
declared a two-for-one stock split, payable to holders of
record at the close of business on MArch 31.
    It said shareholders at the annual meeting approved a
doubling of authorized common shares to 30 mln from 15 mln and
a limitation of directors' liability.


.I 8490
.C
sugar
.W
AGENCY TO REVIEW JOHNSON/JOHNSON <JNJ> SWEETNER.
    NEW BRUNSWICK, March 11 - Johnson and Johnson said the U.S.
Food and Drug Administration has notified the company its food
additive petition for a high-intensity sweetener has been
formally accepted and now will be reviewed by the agency.
    The company said the product, with the generic name of
sucralose, is made from sugar and tastes like sugar, but is
about 600 times sweeter.
    It yields no calories and does not promote tooth decay.


.I 8491
.C
earn
.W
HEART FEDERAL <HFED> SETS TWO FOR ONE SPLIT.
    AUBURN, Calif., March 11 - Heart Federal Savings and Loan
Association said its board declared a two-for-one stock split,
payable April 30 to holders of record April 15.
    The company said the split is subject to shareholder
approval at the April 15 annual meeting of an increase in
authorized common shares to 10 mln from five mln.


.I 8492
.C
earn
.W
NOVO INDUSTRI A/S (NVO.CO) YEAR 1986.
    COPENHAGEN, March 11 -
    Pre-tax income 788 mln Danish crowns vs 872 mln
    Sales 4.21 billion crowns vs 4.11 billion
    Income after tax 521 mln crowns vs 604 mln
    Earnings per 20-crown share 20.45 crowns vs 23.79
    Dividend 20 pct (unchanged).


.I 8493
.C
earn
.W
OVERMYER CORP <OMCO> REGULAR DIVIDEND.
    WINCHESTER, Ind., March 11 -
    Qtly div 10 cts vs 10 cts in prior qtr
    Payable March 31
    Record March 23


.I 8495
.C
earn
.W
UNIFORCE TEMPORARY PERSONNEL INC <UNFR> 4TH QTR.
    NEW HYDE PARK, N.Y., March 11 -
    Shr 18 cts vs 14 cts
    Net 556,036 vs 403,945
    Sales 15.6 mln vs 13.6 mln
    Avg shrs 3,132,555 vs 2,934,285
    Year
    Shr 60 cts vs 48 cts
    Net 1,805,229 vs 1,400,247
    Sales 60.1 mln vs 52.3 mln
    Avg shrs 3,012,917 vs 2,940,219
    NOTE: 1985 share data adjusted to reflect three for two
stock split effective June 30, 1986


.I 8497
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 106 MLN STG ASSISTANCE.
    LONDON, March 11 - The Bank of England said it gave the
money market assistance worth 106 mln stg this afternoon,
buying bank bills at the rates established on Monday.
    The Bank bought 11 mln stg of band one bills at 10-3/8 pct
and 95 mln stg of band two paper at 10-5/16 pct. This is the
first time that it has intervened today.
    The Bank has revised its estimate of the liquidity shortage
in the market down to 250 mln stg from 300 mln initially.


.I 8498
.C
earn
.W
PIC'N'SAVE CORP <PICN> 4TH QTR NET.
    CARSON, Calif., March 11 -
    Shr 45 cts vs 50 cts
    Net 18.0 mln vs 19.9 mln
    Sales 116.1 mln vs 108.8 mln
    Year
    Shr 1.01 dlrs vs 1.04 dlrs
    Net 39.8 mln vs 41.1 mln
    Sales 304.5 mln vs 278.1 mln
    NOTE: Share adjusted for three-for-two split in June 1986.


.I 8499
.C
acq
.W
******GOODYEAR TIRE TO RECEIVE 588 MLN DLRS FOR GOODYEAR AEROSPACE FROM LORAL CORP.
Blah blah blah.

.I 8500
.C
acq
.W
HUGHES TOOL <HT> BOARD APPROVES MERGER.
    HOUSTON, March 11 - Hughes Tool Co said its board voted at
a special meeting last night to approve a new agreement with
regulators that would allow the company to complete its
proposed merger with Baker International Corp <BKO>.
    The agreement, approved by the U.S. Department of Justice
yesterday, will give the merged company, Baker Hughes, six
months instead of three to sell certain assets.
    The pact also allows a three-month extension, if warranted,
and limits the obligation of the new company to give financial
support to the businesses to be divested, pending their sale.
    The company said its board recommended that shareholders
approve the merger of the oilfield service companies. A
previously adjourned meeting of Hughes Tool stockholders will
be resumed this afternoon, it said.
    "Hughes will work with Baker and the Justice Department
towards negotiating the final form of the consent decree and
filing it as soon as possible," the company said in a
statement. Closing of the merger would occur immediately after
the filing, it said.
    The assets to be sold under the consent decree consist of
Baker's domestic oilfield drilling bit business and its
domestic submersible electric pump business. Baker has an
agreement to sell the pump business to Trico Industries Inc
<TRO>.
    The financial terms of the merger are unchanged, a Hughes
spokesman said. Under those terms, each Baker common share and
Hughes common share would be converted into one share and 8/10
of a share, respectively, of Baker Hughes Inc, which would be
formed as a new holding company.


.I 8502
.C
sugar
.W
AGENCY TO REVIEW JOHNSON AND JOHNSON SWEETENER.
    NEW BRUNSWICK, March 11 - Johnson and Johnson said the U.S.
Food and Drug Administration has notified the company its food
additive petition for a high-intensity sweetener has been
formally accepted and now will be reviewed by the agency.
    The company said the product, with the generic name of
sucralose, is made from sugar and tastes like sugar, but is
about 600 times sweeter.
    It yields no calories and does not promote tooth decay.
    Johnson and Johnson said the sweetner is being jointly
developed with Tate and Lyle PLC <TATL>.
    Tate and Lyle is seeking approval in Canada, the United
Kingdom and other European countries, Johnson and Johnson said.
The company noted its petition covering the product and its
safety evaluation were submitted to the FDA last month.
    While awaiting FDA approval, the company said, it is
proceeding with plans for commercialization through its McNeil
Specialty Products Co subsidiary.
    Johnson and Johnson said it is operating under a licensing
agreement with Tate and Lyle, whose collaborative research with
scientists at Queen Elizabeth College in London led to the
discovery of Sucralose in 1976.
    Patents and licensing agreements control the use of
sucralose through the year 2001, Johnson and Johnson said.
    Sucralose is a chlorinated derivative of ordinary sugar.
The carbon-chloride bonds in sucralose are stable and are not
broken during digestion or metabolism.
    Sucralose is essentially not metabollized by the body. The
chlorine content enhances sweetness without providing calories.


.I 8504
.C
acq
.W
******HANSON TRUST PLC UNIT TO SELL KAISER CEMENT TERMINAL AND PLANT FOR 50 MLN DLRS.
Blah blah blah.

.I 8505
.C
crude
.W
TRITON ENERGY <OIL> AFFILIATE IN CANADIAN FIND.
    DALLAS, March 11 - Triton Energy Corp said its 70 pct owned
<Canadian Worldwide Energy Ltd> affiliate's Lasmo et al
Tableland 4-36-2-10W2 well in Saskatchewan flowed 567 barrels
of 37 degree gravity oil through a 17/64 inch choke from depths
of 8,531 to 8,548 feet and 636 barrels of oil per day through a
20/64 inch choke from depths of 8,500 to 8,507 feet.
    Triton said because of the well's status as a deep
exploratory well, production qualifies for a five-year royalty
holiday under the Saskatchewan drilling incentive products.
    It said the well's initial production is expected to be
restricted to an allowable level of about 300 barrels a day,
although it is capable of sustaining much higher rates.
    The company said London and Scottish Marine Oil PLC owns a
50 pct interest in the well and its spacing unit, Canadian
Worldwide 25 pct, <Saskatchewan Oil and Gas Corp> 10 pct,
<Interprovincial Pipeline Ltd's> Home Oil Co Ltd 7.5 pct and
Scurry-Rainbow Oil Ltd <SRB> 7.5 pct.
    Triton said Royal Dutch/Shell Group's <RD> <SC> Shell
Canada Ltd <SHC> affiliate retains a convertible overriding
interest in the well.


.I 8506
.C
money-fx;cpi;trade;reserves;
.W
HUNGARY HOPES DEVALUATION WILL END TRADE DEFICIT.
    By David Lewis, Reuters
    BUDAPEST, March 11 - National Bank of Hungary first
vice-president Janos Fekete said he hoped a planned eight pct
devaluation of the forint will spur exports and redress last
year's severe trade deficit with the West.
    Fekete told Reuters in an interview Hungary must achieve at
least equilibrium on its hard currency trade.
    "It is useful to have a devaluation," he said. "There is now a
real push to our exports and a bit of a curb to our imports."
    The official news agency MTI said today Hungary would
devalue by eight pct and it expected the new rates to be
announced later today. Fekete said the rates would come into
effect tomorrow.
    He said one reason for the devaluation was that Hungary had
a higher rate of inflation over the past two years than its
main partners (around eight pct in 1985 and between five and
5.5 pct in 1986).
    This was partly an after-effect of action Hungary took to
prevent inflation from soaring during the oil price shocks of
the 1970s, he added.
    Hungary devalued by a similar amount last September and by
between three and four pct early last year.
    But the country's hard currency trade balance nevertheless
fell into a deficit of 539.4 mln dlrs from a surplus of 295.3
mln in 1986 and 1.2 billion in 1985.
    Fekete said Hungary was hoping for a hard currency trade
surplus of between 200 and 300 mln dlrs this year, but that a
more likely outcome would be closer to equilibrium on total
hard currency trade of around 10 billion dlrs.
    One Western commercial attache here said: "Devaluation of
itself will not change anything. It will only be useful if they
also make efforts to restructure industry and improve the
quality of their export goods."
    Fekete said he hoped to raise credits on good terms this
year to invest in restructuring industry.
    It would be his role to persuade international banks to
cooperate in this process. He noted Hungary had been given an
AA rating enabling it to raise money on the Japanese Samurai
bond market.
    Hungary's net hard currency debt soared to 7.79 billion
dlrs last year from 5.01 billion in 1985, partly because of a
current account deficit of 1.42 billion dlrs and partly because
the fall in the dollar increased the dollar value of debt
denominated in marks or yen.
    He said he feared net debt would also rise slightly this
year, but he was in favour of borrowing for the purpose of
modernisation.
    "I am for credits to invest for that purpose," he said. "I am
against credits for consumption." He forecast gross domestic
product growth of two pct this year, from one pct in 1986.
   Fekete said Hungary would continue to restructure its debt
profile by prepaying high interest shorter and medium term
loans with cheaper long term money for which it was looking
more and more to the fixed interest rate bond market, where he
considered rates to be low.
    Hard currency foreign exchange reserves would stay at
around 3.5 billion dlrs, he said. On the budget deficit, which
tripled to a provisional 47 billion forints last year after
quadrupling in 1985, Fekete said the finance ministry was
working out measures to reduce an approved target deficit for
this year of 43.8 billion forints to between 30 and 35 billion
forints.


.I 8507
.C
crude
.W
ECUADOR DEPUTY MINISTER SEEKS OIL AID IN VENEZUELA.
    CARACAS, March 11 - Ecuador's deputy energy minister
Fernando Santos Alvite arrived here last night for talks on
further Venezuelan assistance to his country's oil industry
following last week's earthquake, officials said.
    Ecuador was obliged to suspend crude oil exports for an
expected five months as a result of damage to 25 miles of
pipeline linking its jungle oil fields with the Pacific port of
Balao. Oil normally accounts for 60 pct of its exports.
    Fellow OPEC member Venezuela has already agreed to lend
Ecuador five mln barrels of crude, to be repaid in kind after
180 days, to help meet its domestic consumption needs.
    The officials could neither confirm nor deny reports that
Venezuela will temporarily produce Ecuador's entire OPEC quota,
set at 210,000 barrels per day for first half 1987.
    "All options are open at this moment in the context of
cooperation on oil production," a Venezuelan energy and mines
ministry source said.
    Discussions are also under way to arrive at a formula to
compensate Ecuador for the loss in oil export revenue while the
pipeline is repaired, officials said.
    Santos Alvite last night met Venezuelan energy and mines
minister Arturo Hernandez Grisanti and will today hold talks at
technical level, officials said.
    Industry sources said that among the options are for
Venezuela to produce Ecuador's entire quota, or for Venezuela
and non-OPEC Mexico to share it and for the latter to supply
Ecuador's Far Eastern clients.
    But the ministry source said that no decision has yet been
reached on the matter, and that an announcement would be made
in due course.
    Santos Alvite said earlier in Quito that Ecuador would have
to import six to seven mln barrels of crude oil to meet its
needs until the line was repaired.
    Ecuador energy and mines minister Javier Espinosa Teran
said last night his country needs 120 mln dlrs to repair the
damage to the export pipeline caused by the earthquake.


.I 8508
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 11 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 295,000 to 308,000 head versus
305,000 week ago and 308,000 a year ago.
    Cattle slaughter is guesstimated at about 128,000 to
132,000 head versus 130,000 week ago and 126,000 a year ago.


.I 8509
.C
acq
.W
GOODYEAR <GT> TO RECEIVE 588 MLN DLRS FOR UNIT.
    AKRON, Ohio, March 11 - Goodyear Tire and Rubber Co said it
will receive about 588 mln dlrs in cash from Loral Corp <LOR>
for the business of Goodyear Aerospace Corp.
    Goodyear said the previously announced acquisition by Loral
is expected to be completed March 13. When Loral announced the
transaction January 12, the company said it was paying 640 mln
dlrs for Goodyear Aerospace.
    Goodyear said the price it will receive is after
adjustments for such items as pension and benefits provision,
allocation of liabilities and asset valuations. Last year
Goodyear Aerospace had revenues of 695 mln dlrs.               


.I 8510
.C
earn
.W
VEBA'S RAAB KARCHER RAISES 1986 OPERATING PROFIT.
    ESSEN, West Germany, March 11 - Raab Karcher AG, a trading
subsidiary of VEBA AG <VEBG.F>, said it increased operating
profit in 1986 despite a sharp decline in turnover, and added
there were good chances this profit level could be held in
1987.
    Operating profit rose to just under 120 mln marks in 1986,
from around 100 mln in 1985.
    However, the group's third party sales fell sharply to 7.2
billion marks from 9.4 billion the year before, largely due to
lower prices for energy products, particularly oil and coal,
managing board chairman Klaus Giesel told a news conference.


.I 8511
.C
earn
.W
HOVNANIAN ENTERPRISES <HOV> SPLITS STOCK.
    RED BANK, N.J., March 11 - Hovnanian Enterprises Inc said
its board of directors has declared a two-for-one split of its
outstanding common stock.
    The company said shareholders will receive one additional
share for each share held at the close of business on March 23,
1987 and additional shares will be distributed on April 13,
1987.


.I 8512
.C
acq
.W
BRITISH AEROSPACE RAISES SYSTEM DESIGNERS STAKE.
    LONDON, March 11 - British Aerospace Plc <BAEL.L> said it
has increased its stake in <Systems Designers Plc> to 22.1 pct
or 25.46 mln ordinary shares following the purchase of 10.45
mln ordinary shares.
    The British Aerospace Pension Fund holds 2.15 mln ordinary
shares in Systems, representing a stake of 1.9 pct.
    A spokesman for British Aerospace said it has no present or
future intention of making a full bid for Systems Designers.
System Designers shares were nine pence higher at 100 prior to
the share stake announcement, and have showed little movement
since.


.I 8514
.C
earn
.W
ESSELTE BUSINESS SYSTEMS INC <ESB> UPS PAYOUT.
    GARDEN CITY, N.Y., March 11 -
    Qtly div 18 cts vs 14 cts prior
    Pay March 31
    Record March 25


.I 8515
.C
earn
.W
KATY INDUSTRIES INC <KT> 4TH QTR NET.
    ELGIN, ILL., March 11 -
    Oper shr profit 32 cts vs loss 66 cts
    Oper net profit 2,454,000 vs loss 3,558,000
    Sales 96.1 mln vs 91.4 mln
    Year
    Oper shr profit 72 cts vs loss 63 cts
    Oper net profit 6,495,000 vs loss 1,833,000
    Sales 368.1 mln vs 322.1 mln
    NOTE: Earnings exclude losses from discontinued
consolidated operations of 460,000 dlrs, or eight cts a share
vs 5,364,000 dlrs, or 86 cts a share in the quarter and
11,334,000 dlrs, or 1.82 dlrs a share vs 11,637,000 dlrs, or
1.88 dlrs a share for the year
    Earnings exclude a loss on the sale of discontinued
consolidated operations of 200,000 dlrs, or three cts a share
in the 1986 quarter and a loss of 4,960,000 dlrs, or 80 cts a
share vs a gain of 4,404,000 dlrs, or 71 cts a share for the
year
    NOTE: 1985 earnings exclude losses from discontinued
unconsolidated operations of 5,488,000 dlrs, or 89 cts a share
in each period
    1985 earnings exclude gain from termination of defined
benefit pension plan of 490,000 dlrs, or eight cts a share in
the quarter and 1,438,000 dlrs, or 23 cts a share for the year


.I 8516
.C
earn
.W
<PMI FUND INC> SETS MONTHLY DIVIDENDS.
    NEW YORK, March 11 - PMI Fund Inc said its board declared
monthly dividends of six cts for April, four cts for May, five
cts for June, seven cts for July and six cts for August.
    The fund, which customarily omits dividends in March and
September, last paid six cts in February.  Dividends declared
today are payable April Three, May Six, June Four, July Three
and August Six to holders of record March 23, April 17, May 15,
June 12 and July 17.


.I 8517
.C
earn
.W
MERRY-GO-ROUND ENTERPRISES INC <MGRE> 4TH QTR.
    TOWSON, Md., March 11 - Jan 31 end
    Shr 51 cts vs 38 cts
    Net 3,254,000 vs 2,423,000
    Sales 65.9 mln vs 51.1 mln
    Year
    Shr 1.18 dlrs vs 1.15 dlrs
    Net 7,485,000 vs 7,285,000
    Sales 207.5 mln vs 164.1 mln


.I 8518
.C
earn
.W
TENERA LP <TLPZV> SETS INITIAL QUARTERLY.
    BERKELEY, Calif., March 11 - TENERA LP said it will make an
initial quarterly distribution of 17 cts per unit on April 15
to holders of record March 31.
    The partnership said the dividend is greater than it had
expectd to pay and was warranted by fourth quarter results and
anticipated results for this year's first quarter.
    TENERA said it expects a comparable distribution for the
second quarter.  It said about 13 cts per share of the first
quarter amount will be taxable income.


.I 8520
.C
acq
.W
HANSON <HAN> UNIT TO SELL KAISER TERMINAL/PLANT.
    NEW YORK, March 11 - Hanson Industries, the U.S. arm of
Hanson Trust PLC <HAN>, said it has proposed to sell, in
separate transactions, Kaiser Cement's Northwest Terminals and
Montana City plant, to Lone Star Industries Inc <LCE> and <Ash
Grove Cement West Inc>, respectively for a total of 50.2
mln dlrs.
    Hanson said the deals are subject to normal conditions of
closing.
    Hanson Industries completed the purchase of Kaiser Cement
on March 3, for about 250 mln dlrs.
    Hanson said Kaiser Cement is now an indirect wholly owned
unit of Hanson Trust and forms part of its building products
group.
    "These sales are a continuation of an asset redeployment
program at Kaiser Cement and will allow Kaiser to concentrate
its efforts in the California marketplace, where it is the
largest cement producer and holds a premiere market position,"
Hanson Industries chairman Gordon White said.
   


.I 8522
.C
crude
.W
ECUADOR OFFICIAL SEEKS OIL AID IN VENEZUELA.
    CARACAS, March 11 - Ecuador's deputy energy minister
Fernando Santos Alvite arrived here last night for talks on
further Venezuelan assistance to his country's oil industry
following last week's earthquake, officials said.
    Ecuador was obliged to suspend crude oil exports for an
expected five months as a result of damage to 25 miles of
pipeline linking its jungle oil fields with the Pacific port of
Balao. Oil normally accounts for 60 pct of its exports.
    Fellow OPEC member Venezuela has already agreed to lend
Ecuador five mln barrels of crude, to be repaid in kind after
180 days, to help meet its domestic consumption needs.


.I 8523
.C
bop;trade;
.W
******U.S. 4TH QTR BALANCE OF PAYMENTS TRADE DEFICIT WAS RECORD 38.37 BILLION DLRS.
Blah blah blah.

.I 8524
.C
sugar
.W
******NY TRADERS SAY E.C. SOLD 71,000 TONNES  OF WHITE SUGAR AT TENDER.
Blah blah blah.

.I 8525
.C
money-fx
.W
U.K. MONEY MARKET GIVEN LATE HELP OF 240 MLN STG.
    LONDON, March 11 - The Bank of England said it provided the
money market with unspecified late assistance of around 240 mln
stg.
    This brings its total assistance on the day to 346 mln stg
compared with a liquidity shortfall it estimated at a revised
250 mln stg.
    Overnight interbank sterling was being offered at eight pct
shortly after the Bank's announcement.


.I 8526
.C
earn;copper;
.W
OUTOKUMPU RESTRUCTURES COPPER DIVISION.
    HELSINKI, March 11 - Finland's mining and metals group
Outokumpu Oy <OUTO.HE>, which last week reported a 1986 loss of
83 mln markka after three successive years of profits, said it
restructured its key copper processing division in an attempt
to rationalize production and improve profitability.
    Outokumpu's Managing Director Pertti Voutilainen told a
news conference the reorganization involved a split of the
division into a new independent division with six profit
centres.
    Outokumpu group had a 1986 loss before appropriations and
taxes of 83 mln markka after a profit of 355 mln in 1985. It
had profits in 1984 and 1983 but a loss, 171.2 mln, in 1982.
    Outokumpu acquired two Swedish copper manufacturers in
January 1986, <Metallverken Ab> and <Wirsbo Bruks Ab>, that
were merged into its copper processing division.
    The division had a turnover of 3.2 billion markka last
year, 42 pct of Outokumpu's group turnover of 7.58 billion.
    The new Outokumpu division, called Copper Products
Industry, is to incorporate Outokumpu's copper production
plants, including its two U.S. Subsidiaries <Nippert Co> and
<Valleycast Inc>, as well as Metallverken and part of Wirsbo.
    Outokumpu is planning to make Wirsbo an independent
division in the Outokumpu group and transfer only Wirsbo's
copper tube production into one of the new division's profit
centres. A definite decision on Wirsbo will be taken later this
year.
    The new division will have production plants in Finland,
Sweden, Norway, the Netherlands and the U.S.


.I 8528
.C
bop;trade;
.W
U.S. TRADE DEFICIT 38.37 BILLION DLRS IN 4TH QTR.
    WASHINGTON, March 11 - The U.S. merchandise trade deficit
on a balance of payments basis was a record 38.37 billion dlrs
in the October to December fourth quarter, the Commerce
Department said.
    The record trade shortfall came after a revised 37.15
billion dlr third quarter deficit. The department previously
reported the third quarter deficit was 37.67 billion dlrs.
    For the full year 1986, the merchandise trade deficit was a
record 147.7 billion dlrs, up from 124.4 billion dlrs in 1985,
the department said.
    During the final quarter last year imports rose 2.78
billion dlrs or three pct to 95.7 billion dlrs, while exports
rose 1.56 billion dlrs or three pct to 57.33 billion dlrs.
    The trade report on a balance of payments basis excludes
such factors as military sales and the costs of shipping and
insurance.
    The Commerce Department said non-petroleum imports in the
quarter were up 2.7 billion dlrs or three pct to 87.7 billion
dlrs, with the largest increases in consumer goods, which rose
1.2 billion dlrs, and in non-monetary gold and passenger cars
from Canada, up 900 mln dlrs each.
    Lumber imports from Canada fell 300 mln dlrs or 33 pct
because of a 15 pct duty on imports from Canada, the department
said. Passenger car imports fell 600 mln dlrs because of an 18
pct decrease in the number of South Korean-made imported cars
and a nine pct decrease from Japan.
    On the exports side, agricultural exports rose 600 mln dlrs
or nine pct to 7.1 billion dlrs, primarily because of a 104 pct
or 600 mln dlr increase in soybean exports.
    Soybean shipments to Western Europe rose sharply because
supplies from Brazil, a traditional major exporter, were
limited by drought.
    Commerce said the U.S. trade deficit with Latin America
rose 900 mln dlrs to 2.6 billion dlrs, with Japan increased 700
mln dlrs to 14.8 billion dlrs and with Western Europe rose 200
mln to 7.2 billion dlrs in the quarter.
    The deficit with newly industrialized Far East countries,
including Hong Kong, South Korea, Singapore and Taiwan, fell
500 mln dlrs to eight billion dlrs and with Canada the deficit
decreased 200 mln dlrs to 3.3 billion dlrs in the quarter.
    In the full year 1986, imports rose 30.6 billion dlrs or
nine pct to 369.5 billion dlrs. Exports increased by only 7.3
billion dlrs or three pct to 221.8 billion dlrs.
    Commerce said petroleum imports during 1986 fell 16.6
billion dlrs or 33 pct to 33.9 billion dlrs because of lower
prices. The average price per barrel decreased to 14.72 dlrs
from 26.41 dlrs.
    Agricultural exports fell by 2.6 billion dlrs or nine pct
to 26.9 billion during the year. The average price of rice fell
27 pct, cotton was down 22 pct, corn 18 pct, wheat 16 pct and
soybeans nine pct.
    The trade deficit with Japan for all of 1986 rose 11.1
billion dlrs to 54.6 billion dlrs and with Western Europe
increased 7.2 billion dlrs to 28.6 billion dlrs.


.I 8529
.C
sugar
.W
****** UK INTERVENTION BD SAYS EC SETS WHITE SUGAR TENDER REBATE 43.248 ECUS.
Blah blah blah.

.I 8532
.C
earn
.W
BAYER USA <BAYRY> AFFILIATES INCREASED SALES.
    PITTSBURGH, March 11 - Bayer USA Inc said sales of its
affiliated operating cmpanies based in the U.S. increased in
1986 by 4.4 pct from the previous year.
    Combined sales were 4.2 billion dlrs, up from 4.0 billion
dlrs in 1985, the company said.
    However, the company said net income was 106.9 mln dlrs,
three pct below 1985.
    Bayer said its operating companies include Mobay Corp,
Miles Laboratories Inc, Agfa-Gevaert Inc, Compugraphic Corp,
Haarmann and Reimer Corp, Deerfield Urethane Inc and Helena
Chemical Co.
    Bayer said Mobay, its primary chemicals company, reported
net income of 83.4 mln dlrs, up eight pct of 1985. It also said
Miles, its pharmaceutical and healthcare company, recorded
net income of 29 mln dlrs, a 44 pct increase over 1985.
   


.I 8533
.C
earn
.W
DEB SHOPS INC <DEBS> SETS STOCK SPLIT.
    PHILADELPHIA, March 11 - Deb Shops Inc said its board
declared a 100 pct stock dividend and will increase the
quarterly dividend to four cts from 3-1/4 cts after adjustm,ent
for the split.
    The company said the split is payable April 17 to holders
of record March 25.  The dividend increase will be effective
with the April 30 payment, it said.


.I 8534
.C
lei
.W
******CANADA LEADING INDICATOR UP 0.4 PCT IN DECEMBER, AFTER 0.4 PCT NOVEMBER GAIN - OFFICIAL.
Blah blah blah.

.I 8535
.C
acq
.W
CONTINENTAL HEALTH <CTHL> PURCHASES MARKETECH.
    ENGLEWOOD CLIFFS, N.J., March 11 - Continental Health
Affiliates Inc said that it has acquired <Marketech Inc>, an 80
pct partner in <Diatronics Nutrition Services>.
    Continental said Diantronics Nutrition Services is a joint
venture with physicians providing patient-ready home infusion
therapy products and services to outpatients of five northern
New Jersery hospitals representing over 1,900 inpatient beds.
    Continental said the terms of the deal were not disclosed.


.I 8536
.C
earn
.W
VISUAL GRAPHICS SETS DIVIDENDS.
    NEW YORK, MARCH 11 - Visual Graphics Corp <VGCA> <VGCB>
said its board declared a quarterly dividend of 7-1/2 cts per
share on its class "B" common stock and 8-1/4 cts per share on
class "A" common stock payable April Three to shareholders of
record as of March 23.
     The company set up the two classes of common stock in
February. Previously, the company had paid a 7-1/2 cent per
share quarterly dividend on one class of common stock.


.I 8537
.C
earn
.W
DEB SHOPS INC <DEBS> 4TH QTR JAN 31 NET.
    PHILADELPHIA, March 11 -
    Shr 71 cts vs 57 cts
    Net 5,457,000 vs 4,299,000
    Sales 62.9 mln vs 50.1 mln
    Year
    Shr 1.65 dlrs vs 1.37 dlrs
    Net 12.6 mln vs 10.4 mln
    Sales 181.4 mln vs 147.1 mln


.I 8538
.C
gold
.W
SIGMA MINES DETAILS GOLD ORE RESERVES.
    TORONTO, March 11 - <Sigma Mines (Quebec) Ltd>, 65 pct
owned by Dome Mines Ltd <DM>, said its Sigma Mine had proven
and probable reserves at the end of 1986 of 4,902,940 tons,
with an average grade of 0.139 ounces of gold a ton.
    Sigma said the reserves are equivalent to 10 years future
production at current milling rates.
    The reserves comprise 1,640,779 tons proven reserves
grading an average of 0.163 ounces of gold a ton and 3,262,161
tons probable reserves grading an average of 0.127 ounces of
gold a ton.
    Sigma said it changed its 1986 reserve reporting method
following Dome Mines previously reported move to adopt general
industry practice of reporting proven and probable ore
reserves.
    Prior to 1986, Sigma conservatively reported only proven
reserves that could be mined without future development costs.
    Proven reserves as of December 31, 1985 were 978,000 tons
grading an average of 0.194 ounces of gold a ton, equivalent to
about two years future production.


.I 8539
.C
earn
.W
REGENCY CRUISES INC <SHIP> 4TH QTR NET.
    NEW YORK, March 11 -
    Shr profit nine cts vs loss two cts
    Net profit 1,419,000 vs loss 314,000
    Revs 8,097,000 vs 4,794,000
    Avg shrs 15.8 mln vs 15.5 mln
    Year
    Shr profit 37 cts vs loss 10 cts
    Net profit 5,695,000 vs loss 1,268,000
    Revs 40.9 mln vs 4,794,000
    Avg shrs 15.6 mln vs 12.5 mln
    NOTE: Company began operations Nov 17, 1985.


.I 8542
.C
earn
.W
SEAMAN FURNITURE CO INC <SEAM> 3RD QTR JAN 31.
    UNIONDALE, N.Y., March 11 -
    Shr 64 cts vs 51 cts
    Net 4,373,000 vs 3,346,000
    Sales 59.8 mln vs 45.5 mln
    Avg shrs 6,808,000 vs 6,600,000
    Nine mths
    Shr 1.57 dlrs vs 1.18 dlrs
    Net 10.7 mln vs 7,745,000
    Sales 167.0 mln vs 123.1 mln


.I 8543
.C
earn
.W
NOVO INDUSTRI EARNINGS FALL DESPITE INCREASED SALES.
    COPENHAGEN, March 11 - Danish-based insulin and enzymes
producer Novo Industri A/S (NVO.CO) said pre-tax earnings fell
almost 10 pct in 1986 though sales rose by two pct.
    The pre-tax figure fell to 788 mln crowns from 872 mln in
1985, on sales increased from 4.1 billion to 4.2 billion,
giving net earnings of 521 mln crowns against 604 mln in 1985.
    Earnings per 20-crown share went from 23.79 crowns to 20.45
crowns but the company proposed an unchanged 20 pct dividend.
    "Foreign exchange fluctuations in 1986 were a very
significant factor behind developments in the result before and
after tax," Novo said in a statement.
    "Not only the U.S. Dollar but also other currencies
essential to Novo fell in 1986 in relation to the Danish crown,"
the statement added.
    In November 1986, Novo purchased 75 pct of shares in A/S
Ferrosan, which heads a group specialising in research and
development of CNS (central nervous treatment) treatments and
the sale of pharmaceuticals and vitamins in Scandinavia.
    The 357 mln crowns paid in goodwill "had a very limited
effect on the 1986 result," the Novo statement said.


.I 8544
.C
earn
.W
SCS/COMPUTE INC <SCOM> 3RD QTR JAN 31 LOSS.
    ST. LOUIS, MO., March 11 -
    Shr loss 30 cts vs loss 43 cts
    Net loss 891,000 vs loss 969,000
    Revs 1,930,000 vs 1,815,000
    Avg shrs 2.9 mln vs 2.2 mln
    Nine Mths
    Shr loss one dlr vs loss 1.36 dlrs
    Net loss 2,622,000 vs loss 3,037,000
    Revs 4,638,000 vs 4,105,000
    Avg shrs 2.6 mln vs 2.2 mln


.I 8545
.C
acq
.W
SECURITIES DEALER HAS LEASEWAY <LTC> STAKE.
    WASHINGTON, March 11 - Alpine Associates, a Cresskill, N.J.
securities dealer, told the Securities and Exchange Commission
it has acquired 565,100 shares of Leaseway Transport
Corp, or 5.9 pct of the total outstanding common stock.
    Alpine, a limited partnership, said it bought the stock for
28.1 mln dlrs as an investment in the ordinary course of its
business as a securities dealer.
    It left open the possibility that it might buy more
Leaseway stock or sell some or all of its current stake, but
said it has no plans to seek control of the company.



.I 8546
.C
earn
.W
EMPIRE OF CAROLINA INC <EMP> YEAR NET.
    TARBORO, N.C., March 11 -
    Shr 1.26 dlrs vs 67 cts
    Net 7,299,000 vs 3,607,000
    Revs 52.4 mln vs 40.7 mln
    Avg shrs 6,028,755 vs 2,408,766
    NOTE: 1985 results restated to include Deltona Corp <DLT>
investment on equity method.


.I 8547
.C
earn
.W
VHC LTD <VHCL> 4TH QTR OPER NET.
    NEW YORK, March 11 -
    Oper shr profit 18 cts vs loss one ct
    Oper net profit 387,832 vs loss 29,312
    Revs 6,872,630 vs NA
    Year
    Oper shr profit 39 cts vs loss 23 cts
    Oper net profit 835,010 vs loss 441,836
    Revs 20.8 mln vs NA
    Avg shrs 2,135,909 vs 1,885,909
    NOTE: Excludes gains of 378,000 dlrs or 18 cts and 715,000
dlrs or 33 cts in current qtr and year, respectively, from
benefit of tax loss carryforwards. Year-ago excludes losses of
75,809 dlrs or four cts in qtr and 146,061 dlrs or eight cts in
year from discontinued operations. 1985 restated.


.I 8550
.C
earn
.W
TRANSTECH INDUSTRIES INC <TRTI> YEAR NET.
    SCOTCH PLAINS, N.J., March 11 -
    Oper shr 91 cts vs seven cts
    Oper net 4,356,774 vs 289,764
    Revs 69.2 mln vs 50.2 mln
    Avg shrs 4,736,692 vs 4,151,672
    NOTE: 1985 net excludes 3,027,714 dlr loss from
discontinued operations.


.I 8552
.C
sugar
.W
THAI SUGAR PRODUCTION INCREASES.
    LONDON, March 11 - Thai sugar production totalled 960,788
tonnes in January, an increase of 12.7 pct on January 1986,
according to figures received by the International Sugar
Organization.
    November and December production figures also exceeded last
year's totals with the result that output in the first three
months of the season showed a 23.1 pct increase over 1985/86.
Production in the November 1986 to January 1987 period totalled
1.29 mln tonnes.
    Thai exports in December and January were down, however.
January exports fell from 73,164 to 35,910 tonnes.
    Domestic consumption increased 7.3 pct to 192,069 tonnes
for the three month period, but this was not sufficient to
prevent a significant rise in stocks, which climbed to 1.62 mln
tonnes by the end of January, compared with 1.52 mln a year
earlier.
    Thai Agricultural Ministry officials have previously
forecast a decline in 1986/87 raws output to around 2.3 mln
tonnes from 2.48 mln in 1985/86.


.I 8553
.C
lei
.W
CANADA DECEMBER LEADING INDICATOR UP 0.4 PCT.
    OTTAWA, March 11 - Canada's leading composite indicator
advanced 0.4 pct in December after gaining 0.4 pct in the two
previous months, Statistics Canada said.
    The unfiltered index rose 0.8 pct in the month, a
turnaround from the 0.3 pct decline in November, the federal
agency said.
    The manufacturing groups continued to post advances while
goods production rose 1.6 pct, the third increase in the last
four months. The advances, however, were offset by a
deceleration in household demand.


.I 8556
.C
earn
.W
ANOVA VENTURES SETS DIVIDEND IN DUEVEL SHARES.
    DALLAS, March 11 - <ANova Ventures Corp> said its board
declared a dividend payable in the form of registered shares of
stock in <Duvel Corp>, a blind public pool.
    ANova describes itself as a publishing and financial
services firm specializing in arranging revers acquisitions and
mergers between blind pools/shells and private companies.
    ANova said it created Duvel to act as a blind pool and will
seek an operating private company to merger with Duvel. Duvel
has sold 300,000 common shares to a private investor group to
finance expenses of registration and 640,000 shares will be
paid to ANova stockholders as a dividend, it added.


.I 8558
.C
gold;silver;
.W
ST. JOE GOLD TO DEVELOP ONTARIO MINE.
    CLAYTON, Mo., March 11 - St. Joe Gold Corp said it plans to
proceed with development of its Golden Patricia gold property
in northwestern Ontario.
    It said about five mln dlrs will be spent to continue
underground development and obtain operating permits and
another 10.2 mln dlrs is expected to be required to complete
underground development, construct a mill and provide the
infrastructure needed to put the mine into commercial
production.
    St. Joe Gold said if the necessary operating permits were
granted in time, it would start gold production in the second
half of the year ending October 31, 1988 at an annual rate of
about 40,000 troy ounces.
    The company said the property is estimated to contain over
500,000 troy ounces of gold, and the initial mining project
covers only seven of 192 claims, with drill-indicated reserves
of 293,000 short tons grading 0.88 troy ounce of gold per ton.
    It said initial mine output is expected to be about 150
tons of ore daily.
    St. Joe Gold said the Golden Patricia vein has not been
tested at depth or along strike to the east and west and
exploration is continuing on the Golden Patricia property and
the adjacent wholly-owned Muskeg Lake property.
    The company also said its Richmond Hill gold and silver
deposit in the Carbonate district of western South Dakota has
been shown by drilling to contain about 3,900,000 tons grading
0.055 troy ounce of gold and 0.23 troy ounce of silver per ton.
 It said preliminary results are encouraging and a feasibility
study is nearing completion.


.I 8559
.C
earn
.W
NUCOR CORP <NUE> RAISES QUARTERLY.
    CHARLOTTE, N.C., March 11 -
    Qtly div nine cts vs eight cts prior
    Pay May 12
    Record March 31


.I 8561
.C
earn
.W
<KELSEY-HAYES CANADA LTD> YEAR NET.
    WINDSOR, Ontario, March 11 -
    Shr 1.60 dlrs vs 3.12 dlrs
    Net 10.6 mln vs 20.6 mln
    Revs 162.5 mln vs 214.6 mln
    Note: 1985 shr restated to reflect January 31, 1986 stock
split.
    73 pct-owned by Kelsey-Hayes Co.


.I 8563
.C
earn
.W
RIGGS NATIONAL CORP <RIGS> SETS QUARTERLY.
    WASHINGTON, March 11 -
    Qtly div 27-1/2 cts vs 27-1/2 cts prior
    Pay April 15
    Record March 31


.I 8564
.C
acq
.W
<PACER SYSTEMS> TO MAKE ACQUISITION.
    BILLERICA, Mass., March 11 - Pacer Systems said it has
agreed in principle to acquire the assets of Sea Data Corp, a
maker of low-powered electronic systems including undersea
intelligent recording sensors and high-density digital data
recorders, for one mln dlrs.


.I 8567
.C
acq
.W
CHRYSLER <C> DEAL LEAVES UNCERTAINTY FOR AMC WORKERS.
    By Richard Walker, Reuters
    DETROIT, March 11 - Chrysler Corp's 1.5 billion dlr bid to
takeover American Motors Corp <AMO> should help bolster the
small automaker's sales, but it leaves the future of its 19,000
employees in doubt, industry analysts say.
    It was "business as usual" yesterday at the American Motors
headquarters, one day after the proposed merger was unveiled by
Chrysler and AMC's French parent Renault, according to company
spokesman Edd Snyder.
    But AMC's future, to be discussed at a board meeting today,
would be radically different as a Chrysler subsidiary than if
it had continued with the state-run French car group as its
controlling shareholder.
    Industry analysts said the future of AMC's car assembly
plant in Kenosha, Wis., and its Toledo, Ohio, Jeep plant would
be in doubt if the overcapacity predicted in the North American
auto industry by the early 1990s comes to pass.
    Both plants are far from "state of the art" for car
manufacturing sites, and AMC has a history of poor labor
relations at each.
    "Chrysler doesn't need that many new plants," said Michael
Luckey, automotive analyst for the Wall Street firm Shearson
Lehman Brothers. "They probably will close the Toledo plant and
move Jeep production to Canada."
    Ronald Glantz of Montgomery Securities said that at the
very least, the new owner of the Toledo plant would be able to
wring concessions from the United Automobile Workers union
local representing Jeep workers.
    "The UAW won't be able to hold them up for ransom as they
have AMC because during a down year, Chrysler will have
underutilized facilities to transfer production," he said.
    Analysts said they foresaw no major complications that
would abort a combination which historians said would be the
auto industry's biggest merger since American Motors was formed
in 1954.
    AMC was in need of a financial savior because of its losses
of more than 800 mln dlrs since 1980 and pressures in France
for Renault to cut its backing. The company had said it could
not forecast consistent profitability until 1988 at the
earliest.
    In announcing the takeover agreement, Chrysler chairman Lee
Iacocca cited AMC's Jeep division as well as its new 675 mln
dlr assembly plant at Bramalea, Ontario, and its network of
1,200 dealers as the major attractions.
    Analysts reasoned that Chrysler might feel moved eventually
to sell off or close some of the older plants to cut overhead
costs in view of the new debts and liabilities it would incur
in the AMC buyout.


.I 8573
.C
reserves
.W
SPAIN QUALIFIES RESERVE REQUIREMENTS STATEMENT.
    MADRID, March 11 - A Bank of Spain spokesman qualified a
bank statement announcing an extension of reserve requirements
to convertible peseta funds held by banks, saying the move
applied only to future rises above current balances.
    "The 19 pct reserve requirement will only be applied to
further increases in bank's convertible peseta funds," the
spokesman said. Convertible peseta funds previously were exempt
from reserve requirements. The spokesman said the measure was
intended to curb an influx of short-term foreign speculative
capital which threatened the government's money supply growth
target.


.I 8574
.C
money-supply
.W
SPAIN'S MONEY SUPPLY GROWTH DOUBLES IN FEBRUARY.
    MADRID, March 11 - Spain's broad based M-4 money supply
rose at an annualised rate of 16.7 pct in February against 8.1
pct in January and 22.4 pct in February last year, Bank of
Spain figures show.
    The broad-based money supply is measured as liquid assets
in public hands plus quasi-monetary assets.
    Money supply growth was 11.4 pct last year. The government
wants to reduce the rate to eight pct this year.


.I 8579
.C
money-fx;stg;
.W
DEALERS WARY OVER STERLING INTERVENTION RUMOUR.
    LONDON, March 11 - Foreign exchange market rumours that the
the Bank of England has been selling sterling to halt its rise
prompted a wary response from dealers who said they saw no
obvious confirmation, market sources said.
    Bank of England officials were not immediately available
for comment. Earlier this week, the Bank sanctioned a cut in
bank interest rates in a surprise move, which aimed at limiting
sterling's rise ahead of the March 17 budget.
    But today the pound has strengthened to 72.7 on its
trade-weighted index from 72.1 last night, though the U.K.
Currency is below its day's high against the dollar.


.I 8580
.C
earn
.W
TELEPHONE SUPPORT SYSTEMS INC <TSSI> 3RD QTR.
    LAKE SUCCESS, N.Y., March 11 - Nov 30 end
    Shr four cts vs 11 cts
    Net 62,986 vs 174,158
    Sales 720,906 vs 907,542
    Year
    Shr 18 cts vs six cts
    Net 277,852 vs 94,263
    Sales 2,247,374 vs 2,030,390


.I 8581
.C
earn
.W
NETWORK VIDEO INC <NVID> 3RD QTR FEB 28 NET.
    SARASOTA, Fla., March 11 -
    Shr one ct vs five cts
    Net 50,745 vs 161,019
    Revs 478,700 vs 1,048,543
    Avg shrs 4,350,000 vs 3,217,500
    Nine mths
    Shr four cts vs 12 cts
    Net 169,275 vs 390,179
    Revs 1,478,066 vs 2,658,692
    Avg shrs 4,350,000 vs 3,217,500


.I 8582
.C
earn
.W
COMTECH INC <CMTL> 2ND QTR JAN 31 NET.
    HAUPPAUGE, N.Y., March 11 -
    Oper shr profit one ct vs profit two cts
    Oper net profit 63,000 vs profit 84,000
    Sales 5,009,000 vs 4,042,000
    1st half
    Oper shr profit two cts vs loss 17 cts
    Oper net profit 87,000 vs loss 794,000
    Sales 9,838,000 vs 7,368,000
    Backlog 17.8 mln vs 11.4 mln
    NOTE: Current year net excludes tax credits of 32,000 dlrs
in quarter and 45,000 dlrs in half.


.I 8585
.C
earn
.W
BALTEK CORP <BTEK> 4TH QTR NET.
    NORTHVALE, N.J., March 11 -
    Oper shr 21 cts vs 34 cts
    Oper net 480,000 vs 765,000
    Revs 6,386,000 vs 5,862,000
    Year
    Oper shr 1.20 dlrs vs 78 cts
    Oper net 2,692,000 vs 1,732,000
    Revs 25.2 mln vs 20.3 mln
    NOTEL Net excludes tax credit 35,000 dlrs vs reversal of
credit 40,000 dlrs in quarter and credits 79,000 dlrs vs 72,000
dlrs in year.


.I 8586
.C
acq
.W
SAHLEN AND ASSOCIATES <SALNU> COMPLETES PURCHASE.
    DEERFIELD BEACH, Fla., March 11 - Sahlen and Associates Inc
said it has completed the purchase of Gleason Securities
Service Inc of New York and Gleason Plant Security Inc of
Connecticut.
    Sahlen said the deal's terms were not disclosed, but added
that the acquired companies had combined annual revenues of
over 18 mln dlrs.
    Sahlen, a private invetigation company, said the Gleason
companies provide security guard services to corporations in
the tri-state area.
   


.I 8587
.C
earn
.W
MEM CO INC <MEM> DECLARES QTLY DIV.
    NORTHVALE, N.J., March 11 -
    Qtly div 15 cts vs 15 cts prior
    Pay May 11
    Record March 31.


.I 8589
.C
earn
.W
INSITUFORM OF NORTH AMERICA INC <INSUA> 4TH QTR.
    MEMPHIS, Tenn., March 11 -
    Shr nine cts vs four cts
    Net 658,159 vs 299,930
    Revs 3,770,341 vs 2,614,224
    Avg shrs 7,382,802 vs 6,747,442
    Year
    Oper shr 33 cts vs 18 cts
    Oper net 2,287,179 vs 1,045,799
    Revs 13.1 mln vs 8,577,853
    Avg shrs 6,874,505 vs 5,951,612
    NOTE: 1985 year net includes 13,000 dlr tax credit.


.I 8593
.C
earn
.W
MAJOR REALTY CORP <MAJR> 4TH QTR LOSS.
    ORLANDO, Fla., March 11 -
    Shr loss 19 cts vs profit 11 cts
    Net loss 1,140,270 vs profit 590,463
    Revs 1,259,164 vs 3,225,512
    Year
    Shr loss 67 cts vs profit 10 cts
    Net loss 4,004,840 vs profit 580,488
    Revs 3,184,480 vs 9,123,041


.I 8594
.C
earn
.W
NUTMEG INDUSTRIES INC <NUTM> YEAR JAN 31 NET.
    TAMPA, Fla., March 11 -
    Shr 14 cts
    Net 510,917
    Sales 12.3 mln
    NOTE: Share adjusted for five for four stock split in
January 1987.
    Backlog 13.0 mln dlrs vs 3,733,000 dlrs.
    Company began operating January 27, 1986.


.I 8597
.C
acq
.W
HENRY ANSBACHER HAS 51 PCT OF ADAMS AND PORTER INC.
    LONDON, March 11 - <Henry Ansbacher Holdings Plc> said it
has acquired a 51 pct interest in the U.S. Retail and general
corporate insurance broker <Adams and Porter Inc>.
    The move is the first step in building a new international
insurance broking group following the appointment of a new
management team for its Seascope Insurance Holdings unit.
    Ansbacher said A and P has exciting growth potential,
particularly on the east coast of the U.S. And has an annual
revenue of more than four mln dlrs. Ansbacher shares were up
4-1/2p to 90-1/2, helped by the announcement earlier today of a
1986 pretax profit rise to 5.56 mln stg from 2.74 mln in 1985.


.I 8601
.C
earn
.W
NATWEST, RABO UNIT REPORTS 8.8 PCT PROFIT GROWTH.
    DEN BOSCH, Netherlands, March 11 - Dutch bank F. Van
Lanschot Bankiers N.V., Co-owned by National Westminster PLC
<NWBL.L> and RABOBANK B.A. <RABN.A> , said 1986 net profit rose
8.8 pct to 24.1 mln guilders on a 4.8-pct higher balance sheet
total of 6.2 billion.
    Van Lanschot Bankiers is a subsidiary of Van Lanschot
Beleggingscompagnie B.V. In which Britain's National
Westminster Bank PLC and Dutch cooperative bank RABOBANK
Nederland B.A. Each have a 40-pct stake. Commercial Union's
Dutch insurance unit <Delta Lloyd Verzekeringsgroep N.V.> has a
5.4-pct stake in Van Lanschot, which lowered risk provisions to
22.5 mln guilders.

.I 8603
.C
sugar;trade;
.W
LICHT SEES RISE IN EUROPEAN BEET AREA: TRADE.
    LONDON, March 11 - West German sugar statistician F.O.
Licht estimates European beet plantings this year at 7.22 mln
hectares compared with a revised 1986 figure of 7.21 mln,
traders said.
    In its first estimate for 1987, it puts EC plantings at
1.85 mln hectares compared with 1.89 mln in 1986, while it
estimates sowings in Western Europe (including EC) at 2.49 mln
hectares compared with 2.50 mln in 1986.
    Traders said Licht forecasts Eastern Europe plantings at
4.73 mln hectares against 4.72 mln in 1986.


.I 8607
.C
money-fx
.W
FED EXPECTED TO ADD RESERVES.
    NEW YORK, March 11 - The Federal Reserve is expected to
intervene in the government securities market to add temporary
reserves via customer or system repurchase agreements,
economists said.
    Most economists said the Fed will inject reserves
indirectly via customer repurchases, but they added that the
Fed might opt for a direct injection of reserves via overnight
system repurchases.
    Federal funds opened at 6-3/8 pct and eased to 6-5/16 pct
in early trading. Funds averaged 6.29 pct yesterday.


.I 8608
.C
earn
.W
BEN AND JERRY'S HOMEMADE INC <BJIC> 4TH QTR NET.
    WATERBURY, Conn., March 11 -
    Shr 10 cts vs two cts
    Net 163,832 vs 31,063
    Sales 5,434,430 vs 3,167,735
    Avg shrs 1,712,231 vs 1,533,277
    Year
    Shr 59 cts vs 41 cts
    Net 1,016,375 vs 550,625
    Sales 19.7 mln vs 9,755,018
    Avg shrs 1,710,256 vs 1,327,172


.I 8610
.C
earn
.W
BONNEVILLE PACIFIC CORP <BPCO> 3RD QTR JAN 31.
    SALT LAKE CITY, March 11 -
    Shr 52 cts vs 41 cts
    Net 4,921,601 vs 3,157,070
    Revs 35.8 mln vs 31.7 mln
    Avg shrs 8,939,955 vs 7,600,000
    Nine mths
    Shr 52 cts vs 34 cts
    Net 4,604,406 vs 2,585,621
    Revs 36.0 mln vs 32.1 mln
    Avg shrs 8,939,955 vs 7,600,000


.I 8612
.C
earn
.W
JC PENNEY <JCP> UP ON SMITH BARNEY OPINION.
    NEW YORK, MARCH 11 - J.C. Penney Co's stock rose sharply 
after analyst William Smith of Smith Barney recommended the
stock, based on the company's strong earnings momentum and the
possibility of a stock buyback, dividend hike or stock split,
traders said.
    "I am very impressed with the strong basic earnings story,"
analyst Smith said, noting that the company has "fine tuned its
buying and inventories, and has admirably controlled costs in a
time that they needed to."
    The stock jumped 2-1/2 to 98-3/4.
    Smith said the company ended 1986 with a strong cash
position of about 639 mln dlrs as compared to 158 mln dlrs the
year before. "This implies the possibility of a share buyback,
or significant dividend increase or a stock split," he said.
    In addition, he said the company has been gradually
adjusting its merchandise mix and its gross margins have been
improving.
    Smith expects the company to earn 8.25-to-8.50 dlrs a share
in 1987 as compared to the 7.06 dlrs a share earned last year.
Last year's results include a 69 cent charge for the buyback of
debt.


.I 8614
.C
sugar
.W
GERMAN SUGAR OFFERS PUT AT ABOUT 100,000 TONNES.
    HAMBURG, March 11 - The West German intervention board said
about 100,000 tonnes of sugar have been offered into
intervention so far.
    A spokesman, speaking from Frankfurt, told Reuters offers
have increased recently but contracts have not yet been
concluded. A European Commission spokesman in Brussels earlier
confirmed that one mln tonnes of sugar had been offered to
intervention boards in various member states. The intervention
board spokesman in Frankfurt said, "One million tonnes is an
awful lot and the Community's coffers are almost empty. This
could turn into a serious political problem."
    West German trade sources said they believed the one mln
tonne offer by the EC sugar industry into intervention would
have a neutral market impact overall.


.I 8615
.C
interest
.W
BANKERS TRUST CO RAISES BROKER LOAN RATE.
    NEW YORK, March 11 - Bankers Trust Co said it raised its
broker loan rate to 7-1/4 pct from seven pct, effective
immediately.
    U.S. Trust Co, which also quotes its broker loan rate
publicly, is posting a 7-1/2 pct rate.


.I 8617
.C
gold
.W
SIGMA MINES DETAILS GOLD ORE RESERVES.
    TORONTO, March 11 - <Sigma Mines (Quebec) Ltd>, 65 pct
owned by Dome Mines Ltd, said its Sigma Mine had proven and
probable reserves at the end of 1986 of 4,902,940 tons, with an
average grade of 0.139 ounces of gold a ton.
    Sigma said the reserves are equivalent to 10 years future
production at current milling rates.
    The reserves comprise 1,640,779 tons proven reserves
grading an average of 0.163 ounces of gold a ton and 3,262,161
tons probable reserves grading an average of 0.127 ounces of
gold a ton.
    Sigma said it changed its 1986 reserve reporting method
following Dome Mines' previously reported move to adopt general
industry practice of reporting proven and probable ore
reserves.
    Prior to 1986, Sigma conservatively reported only proven
reserves that could be mined without future development costs.
    Proven reserves as of December 31, 1985 were 978,000 tons
grading an average of 0.194 ounces of gold a ton, equivalent to
about two years future production.


.I 8620
.C
acq
.W
MOORE MCCORMACK <MMC> TO SELL GLOBE UNIT.
    STAMFORD, March 11 - Moore McCormack Resources Inc said it
agreed in principle to sell its Globe Metallurgical Inc unit to
Cyprus Minerals Co <CYPM> for undisclosed terms.
    The sale, expected to close by mid-April, is subject to
certain conditions, including board approval at both companies.
    Globe produces silicon metals and magnesium ferrosilicon.
The products are used in the chemical, aluminum, iron, rubber
and semiconductor industries.


.I 8621
.C
housing
.W
U.S. HOSUING COMPLETIONS FELL 0.2 PCT IN JANUARY.
    WASHINGTON, March 11 - U.S. Completions of new homes fell
0.2 pct in January to a seasonally adjusted rate of 1.884 mln
units from 1.888 mln in December, the Commerce Department said.
    The January fall came after a strong 6.4 pct rise from
November's rate of 1.774 mln units and brought completions to
6.7 pct above the January, 1986 level of 1.765 mln units.
    In January, completions of single-family units rose 0.4 pct
to a seasonally adjusted 1.183 mln units from 1.178 mln units
in December while multi-family units fell 1.3 pct to 701,000
units in January, the department said.


.I 8624
.C
acq
.W
U.S. JUSTICE DEPARTMENT REVIEWS ICAHN USAIR FILING.
    WASHINGTON, March 11 - The U.S. Department of Justice (DOJ)
is reviewing whether Trans World Airlines Inc <TWA> and
Chairman Carl Icahn violated federal antitrust law by failing
to seek advance clearance from the DOJ or the Federal Trade
Commission for his extensive open-market purchases of USAir
Group Inc <U> stock, a DOJ official told a Senate panel.
    "This is a matter that is being looked into," Charles Rule,
acting assistant attorney general-antitrust, told the Senate
Judiciary Committee's Antitrust Subcommittee.
    Rule declined further comment while the review was
continuing.
    Rule was responding to panel Chairman Howard Metzenbaum
(D-Ohio), who had asked why the department was not acting
against "what appears to be a clear violation of the law."
    Metzenbaum said Icahn had failed to file a pre-merger
notification form with the FTC prior to purchasing more than 15
mln dlrs' worth of USAir stock.
    But Rule said that, for airline companies, a purchaser
would be exempt from the requirement if it instead had filed a
merger application with the U.S. Department of Transportation.
    Icahn filed such an application with the DOT, but the
filing was thrown out by the DOT on Friday.
    The DOT threw out the application late Friday on grounds it
lacked the necessary data for the government to review the
proposed USAir takeover bid.
    Icahn refiled a more complete application form Monday.
    Rule pledged to act against Icahn and TWA if a violation
were found.


.I 8626
.C
earn
.W
T CELL SCIENCES INC <TCEL> 3RD QTR JAN 31 LOSS.
    CAMBRIDGE, Mass., March 11 -
    Shr loss one ct vs loss 16 cts
    Net loss 117,989 vs loss 528,394
    Revs 820,484 vs 35,186
    Avg shrs 8,226,577 vs 3,150,000
    Nine mths
    Shr loss seven cts vs loss 37 cts
    Net loss 527,864 vs loss 1,177,434
    Revs 1,975,487 vs 90,875
    Avg shrs 7,277,418 vs 3,150,000


.I 8630
.C
jobs
.W
DUTCH ADJUSTED UNEMPLOYMENT UNCHANGED IN FEBRUARY.
    THE HAGUE, March 11 - Dutch seasonally-adjusted
unemployment totalled 690,600 people in February, unchanged
from January but down from 732,700 in February 1986, a Social
Affairs Ministry spokesman said.
    The unadjusted figure stood at 708,700 at the end of last
month, a decline of 3,800 from the January total of 712,500 and
comparing with 750,000 at the end of February last year.


.I 8633
.C
housing
.W
U.S. HOUSING COMPLETIONS FELL 0.2 PCT IN JAN.
    WASHINGTON, March 11 - Completions of new homes fell 0.2
pct in January to a seasonally adjusted rate of 1.884 mln units
from 1.888 mln in December, the Commerce Department said.
    The January fall came after a strong 6.4 pct rise from
November's rate of 1.774 mln units and brought completions to
6.7 pct above the January, 1986, level of 1.765 mln units.
    In January, completions of single-family units rose 0.4 pct
to a seasonally adjusted 1.183 mln units from 1.178 mln units
in December while multi-family units fell 1.3 pct to 701,000
units in January, the department said.


.I 8634
.C
earn
.W
MITCHELL ENERGY AND DEVELOPMENT CORP <MND> NET.
    WOODLANDS, Texas, March 11 - 4th qtr Jan 31
    Shr five cts vs 28 cts
    Net 2,448,000 vs 13.3 mln
    Revs 156.1 mln vs 225.5 mln
    Avg shrs 47.3 mln vs 47.8 mln
    Year
    Shr 18 cts vs 1.01 dlrs
    Net 8,430,000 vs 48.2 mln
    Revs 587.9 mln vs 843.9 mln
    Avg shrs 47.4 mln vs 47.9 mln


.I 8636
.C
housing
.W
U.S. HOUSING COMPLETIONS FELL 0.2 PCT IN JANUARY.
    WASHINGTON, March 11 - U.S. Completions of new homes fell
0.2 pct in January to a seasonally adjusted rate of 1.884 mln
units from 1.888 mln in December, the Commerce Department said.
    The January fall came after a strong 6.4 pct rise from
November's rate of 1.774 mln units and brought completions to
6.7 pct above the January, 1986 level of 1.765 mln units.
    In January, completions of single-family units rose 0.4 pct
to a seasonally adjusted 1.183 mln units from 1.178 mln units
in December while multi-family units fell 1.3 pct to 701,000
units in January, the department said.


.I 8642
.C
money-fx
.W
******FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 8643
.C
earn
.W
GROUNDWATER TECHNOLOGY INC <GWTI> 3RD QTR JAN 31.
    CHADDS FORD, Pa., March 11 -
    Shr 19 cts vs 12 cts
    Net 850,000 vs 432,000
    Sales 9,850,000 vs 4,783,000
    Avg shrs 4,504,000 vs 3,527,000
    Nine mths
    Shr 57 cts vs 37 cts
    Net 2,400,000 vs 1,281,000
    Sales 25.2 mln vs 12.8 mln
    Avg shrs 4,233,000 vs 3,485,000


.I 8647
.C
earn
.W
SEVEN OAKS INTERNATIONAL INC <QPON> IN PAYOUT.
    MEMPHIS, Tenn., March 11 -
    Qtly div four cts vs four cts prior
    Pay April 15
    Record March 23


.I 8648
.C
money-fx
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 11 - The Federal Reserve entered the U.S.
Government securities market to arrange two billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-5/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 8650
.C
wheat;grain;
.W
CHINA BUYS U.S. HARD AND SOFT WHEAT.
    CHICAGO, March 11 - Private exporters said China bought a
total of 550,000 tonnes of U.S. wheat under the export
enhancement program, with final confirmation by the U.S.
Department of Agriculture of the subsidies still awaited.
    The purchase consisted of a total of 340,000 tonnes of hard
red winter wheat for various May/Aug shipments, with 210,000
tonnes of soft red winter for Aug/Sept, the exporters said.


.I 8651
.C
earn
.W
PROPERTY TRUST OF AMERICA <PTRAS> YEAR NET.
    EL PASO, Texas, March 11 -
    Ope shr 63 cts vs 80 cts
    Oper net 3,169,000 vs 3,757,000
    Revs 9,585,000 vs 10.2 mln
    Avg shrs 5,070,000 vs 4,721,000
    NOTE: Net excludes gains from sale of investments of
887,000 dlrs vs 304,000 dlrs.


.I 8653
.C
earn
.W
CHI-CHI'S INC <CHIC> 3RD QTR JAN 31 LOSS.
    LOUISVILLE, Ky., March 11 -
    Shr loss 38 cts vs profit eight cts
    Net loss 10.4 mln vs profit 2,144,317
    Revs 72.9 mln vs 67.4 mln
    Nine mths
    Shr loss 21 cts vs profit 38 cts
    Net loss 5,747,393 vs profit 10.1 mln
    Revs 224.6 mln vs 200.6 mln
    NOTE: Current year net both periods includes 20.0 mln dlr
pretax charge for disposition of 21 underperforming
company-owned restaurants.
    Current year net includes tax credits of 3,205,000 dlrs in
quarter and 7,305,000 dlrs in year.


.I 8654
.C
acq
.W
******CHEMLAWN CORP SAID IT IS TALKING WITH NEW SUITORS ABOUT BEING ACQUIRED.
Blah blah blah.

.I 8655
.C
earn
.W
CHI-CHI'S <CHIC> TAKES 20 MLN DLR CHARGE.
    LOUISVILLE, Ky., March 11 - Chi-Chi's Inc said it has taken
a 20 mln dlr pretax charge against earnings for the third
quarter ended January 31 to cover the cost of disposing of 21
"underperforming" company-owned restaurants.
    The company also said it has agreed to repurchase up to
three mln common shares on the open market.
    The company now has about 27.1 mln shares outstanding.
    Chi-Chi's today reported a loss for the third quarter ended
January 31, after the pretax charge and a 7,305,000 dlr tax
credit, of 10.4 mln dlrs, compared with a year-earlier profit
of 2,144,317 dlrs.
    Chi-Chi's said it believes the disposition of the
restaurants has the potential of increasing its pretax earnings
by about two mln dlrs next fiscal year.
    The company said it will use existing cash resources for
the share repurchases.


.I 8656
.C
earn
.W
DUPONT <DD> UP ON RECOMMENDATIONS.
    NEW YORK, MARCH 11 - Shares of Du Pont Co rose today after
accumulating recommendations from Shearson Lehman Brothers and
First Boston, traders said.
    Du Pont, which opened with a two point gain, stood at
109-1/8, up 1-1/8.
    First Boston's analyst was not available for comment.
    Analyst Theodore Semegran of Shearson said he raised his
earnings estimates for the company to 7.25 dlrs a share in 1987
and eight dlrs a share in 1988. The company earned 6.35 dlrs a
share in 1986.
    "Good domestic demand, higher operating earnings and a
strng export business, probably benefitting from a lower dollar
and effects of reduced imports in chemicals will continue to
aid Du Pont." He also noted that energy earnings in the first
quarter are better than expected because of the rise in crude
prices. Semegran expects first quarter earnings
of about 1.85 dlrs a share from 1.67 dlrs last year.
    He also expects the company to raise its annual dividend
about 20 to 30 cts a share, from its current dividend of 3.20
dlrs a share, "and a stock split is possible but it has a low
probablility."


.I 8657
.C
acq
.W
CHEMLAWN <CHEM> IN TALKS ON BEING ACQUIRED.
    COLUMBUS, Ohio, March 11 - ChemLawn Corp said it has
started talks on the possible sale of the company with "various
parties" that it did not identify.
    The company said the talks began after it considred and
rejected Waste Management Inc's <WMX> 27 dlr per share tender
offer for all its sharesd.
    ChemLawn gave no details on the talks.


.I 8660
.C
acq
.W
SHV WITHDRAWS IC GAS OFFER.
    UTRECHT, Netherlands, March 11 - SHV Holdings NV said it is
withdrawing its take-over bid for Imperial Continental Gas
Association <ICGS.L> after failing to gain the minimum number
of pledges sought from IC Gas shareholders.
    SHV said in a statement it had sought to gain 750,000 IC
Gas shares under a 700p offer for IC Gas ordinary stock but was
informed that level was not reached when the deadline expired.
"The tender offer is therefore void," it said.
     SHV also offered 252 pence for every one stg nominal of IC
Gas loan stock under the bid, made by <SHV (United Kingdom)
Holding Co Ltd>.


.I 8661
.C
rubber
.W
PROGRESS AT RUBBER PACT TALKS REPORTED SLOW.
    GENEVA, March 11 - Negotiators at a United Nations
conference on natural rubber are making slow progress towards
reaching an agreement, delegates said.
    The conference, which began Monday, is widely seen as the
final effort to adopt a new International Natural Rubber
Agreement (INRA) before the current one expires in October.
    Some 40 producing and consuming countries are taking part
in the two-week meeting. This is the fourth such conference in
nearly two years.
    Delegates said both sides still appeared divided on the key
issue of the price adjustment mechanism.
    Consumers want frequent price reviews at 12 month intervals
instead of 18 months as at present, a proposal currently
rejected by producers.
    And while consumers press for the price adjustment to be
automatic, producers have resisted reducing the role of the
International Rubber Organization Council in the price
adjustment procedure.
    Conference chairman Manaspas Xuto of Thailand has said it
was "imperative" to settle outstanding issues this week so that
technical drafting work can be done next week.


.I 8663
.C
earn
.W
LORD ABBETT AND CO DECLARES MUTUAL FUND DIVS.
    NEW YORK, March 11 -
    LORD ABBETT VALUE APPRECIATION FUND
    Annual div 33 cts vs 23 cts prior
    Long term capital gain 2.06 vs 75 cts prior
    Short term capital gain 18 cts vs 11 cts prior
    Pay April 6
    Record March 12
    
    LORD ABBETT U.S. GOVERNMENT SECURITIES FUND
    Daily div .029 cts vs .029 cts prior
    Pay April 15
    Record April 15
    LORD ABBETT TAX FREE INCOME NATIONAL SERIES
    Daily .068 cts vs .068 prior
    Pay April 15
    Record April 15
    
    LORD ABBETT TAX FREE INCOME FUND NY SERIES
    Daily .067 cts vs .067 cts prior
    Pay April 15
    Record April 15
    
    LORD ABBETT TAX FREE INCOME FUND TEXAS SERIES
    Daily .059 cts vs .059 cts prior
    Pay April 15
    Record April 15
    LORD ABBETT CALIFORNIA TAX FREE INCOME FUND
    Daily .062 vs .063 cts prior
    Pay April 15
    Record April 15


.I 8664
.C
earn
.W
<ASSOCIATES CORP OF NORTH AMERICA> 1ST QTR NET.
    DALLAS, March 11 - Qtr ended Jan 31
    Net 55.3 mln dlrs vs 51.7 mln dlrs
    Revs 419.1 mln vs 391.7 mln
    Note: Revs include investment and other income of 18.4 mln
dlrs vs 18.5 mln dlrs.
    Company is wholly owned by Gulf and Western Corp <GW>.



.I 8668
.C
earn
.W
NEWPORT PHARMACEUTICALS <NWPH> 3RD QTR LOSS.
    NEWPORT BEACH, Calif., March 11 - Period ended January 31.
    Shr loss six cts vs profit one ct
    Net loss 536,000 vs profit 166,000
    Revs 2,099,000 vs 3,149,000
    Avg shrs 10,429,000 vs 9,943,000
    Nine Mths
    Shre loss nine cts vs loss five cts
    Net loss 790,000 vs loss 377,000
    Revs 7,089,000 vs 7,646,000
    Avg shrs 10,406,000 vs 9,351,000
    Note: Full name Newport Pharmaceuticals International Inc.


.I 8670
.C
earn
.W
THE RAYMOND CORP <RAYM> DECLARES QTLY DIV.
    GREENE, N.Y., March 11 -
    Qtly div 11-3/4 cts vs 11-3/4 cts prior
    Pay March 27
    Record March 13


.I 8671
.C
nat-gas
.W
MITCHELL ENERGY <MND> AGAIN CUTS CAPITAL OUTLAYS.
    THE WOODLANDS, Texas, March 11 - Mitchell Energy and
Development Corp said it plans to hold its capital spending in
fiscal 1988, ending January 31, to 96 mln dlrs, down from the
123 mln dlrs spent in 1987 and 213 mln dlrs in 1986.
    The company also said its natural gas revenues so far this
year have been reduced by lower contract customer purchases due
to mild weather and soft economic conditions.
    "But the contracts call for the lower 'takes' to be made up
during the course of the year," Mitchell Energy said. Meanwhile
it will sell additional quantities of gas on the spot market.
    Mitchell Energy said the additional spot sales will tend to
lower the average price realized for gas in the early part of
fiscal 1988.
    However, it said the average for the full year is not
expected to be significantly lower than the 2.99 dlrs per
thousand cubic feet averaged in fiscal 1987.                   
   


.I 8673
.C
trade
.W
EC CONCERNED OVER U.S. TEXTILE IMPORT MOVES.
    BRUSSELS, March 11 - The European Community (EC) expressed
disquiet over protectionist moves in the United States to limit
imports of textiles and said it would retaliate immediately if
EC exports were hit.
    A spokeswoman for the EC Commission said EC External Trade
Commissioner Willy De Clercq had written to his U.S.
Counterpart, special U.S. Trade Representative Clayton Yeutter,
outlining the concerns of the 12-nation Community.
    The draft legislation under consideration by Congress would
impose permanent quotas on products entering the U.S. and seek
to limit any increase to a growth in the overall trade.


.I 8674
.C
earn
.W
SPEED-O-PRINT BUSINESS <SBM> 4TH QTR NET.
    CHICAGO, March 11 - 
    Shr loss seven cts vs profit 17 cts
    Net loss 102,000 vs profit 258,000
    Revs 1,695,000 vs 1,371,000
    Year
    Shr loss 33 cts vs profit 26 cts
    Net loss 488,000 vs profit 384,000
    Revs 6,700,000 vs 4,774,000
    NOTE: 1986 results include operations of radio stations
WJYE-FM for the full year and WNNR-AM for the last six months.
    Speed-O-Print Business Machines Corp is full name of
company.


.I 8675
.C
earn
.W
ASBESTEC INDUSTRIES <ASBS> SETS STOCK SPLIT.
    PENNSAUKEN, N.J., March 11 - Asbestec Industries Inc said
its board declared a three-for-two stock split, payable April
17, record April Three.


.I 8677
.C
earn
.W
QUAKER OATS CO <OAT> REGULAR DIVIDEND.
    CHICAGO, March 11 -
    Qtly div 20 cts vs 20 cts previously
    Pay April 15
    Record March 23


.I 8678
.C
acq
.W
JONES AND VINING <JNSV> GETS VULCAN <VUL> BID.
    BRAINTREE, Mass., March 11 - Jones and Vining Inc said
Vulcan Corp, one of its main competitors in the production of
shoe lasts, has offered to acquire Jones and Vining for five
dlrs a share.
    Jones and Vining said a management effort to take the
company private will go ahead at 4.50 dlrs per share. The form
of the buyout has not yet been determined and the buyout is
subject to a nunber of conditions, it said.
    Jones and Vining said its board believes that a transaction
with Vulcan would be difficult to complete, but it has asked
Vulcan for further information to explore the bid.
    On January 23, Jones and Vining said its board had
recommended that shareholders aprove a management buyout at
4.50 dlrs a share.
    On February Six, Vulcan initially offered to acquire Jones
and Vining for five dlrs a share, but Jones and Vining
dismissed the offer as "frivolous" and "without substance" and
said the bid failed to comply with provisions of the Securities
Act of 1934.


.I 8679
.C
acq
.W
INVESTOR TO TAKE CONTROL OF RIVER OAKS <ROI>.
    BIRMINGHAM, Ala., March 11 - River Oaks Industries Inc said
it agreed in principle to give control of the company to Benson
Seizer, a New York investor, in return for 2.6 mln dlrs in
capital.
    The company, a maker of mobile homes, said it terminated
merger discussions with <Nursing Centers of America>.
    River Oaks said it will place a 2.6 mln dlr convertible
note with Seizer, who in turn will name six additional members
to the company's five-member board. One of the new directors
will take over as chairman and chief executive officer, River
Oaks said.
    River Oaks said the note will be convertible into two mln
shares of its common stock at one dlr a share. The company
currently has 14 mln shares outstanding.
    The company said it will also grant Seizer an option to buy
an additional 2.6 mln shares during the next four years at 1.25
dlrs a share during the first year and 1.50 dlrs a share
thereafter.
    The company said the money raised from Seizer will further
strengthen its balance sheet and enhance its ability to seek
selective expansion opportunities.
    Seizer is experienced in turnaround situations and is
expected to take direct involvement in River Oaks management,
said Charles F. DeGroot, who will remain a director of the
company after giving up the post of chairman to one of Seizer's
board nominees.
    Don Manning will cede his post as chief executive but will
remain president, the company said.


.I 8680
.C
earn
.W
GEVAERT NV <GEVN.BR> 1986 YEAR.
    BRUSSELS, March 11 -
    Consolidated group net profit 1.88 billion francs vs 1.29
billion.
    Net financial and operating profit 1.11 billion vs 825.1
mln.
    Extraordinary earnings 774.7 mln vs 462.8 mln.
    Net dividend 165 francs vs 150.


.I 8682
.C
interest
.W
NATIONAL SAVINGS MOVE POINTS TO LOWER U.K. RATES.
    By Geert Linnebank, Reuters
    LONDON, March 11 - U.K. Interest rates look set to move
lower even after Monday's half-point cut in bank base rates to
10-1/2 pct, analysts said, citing as evidence the suspension of
a British National Savings issue yesterday.
    The Department of National Savings, effectively a Treasury
Department unit, yesterday suspended its 32nd issue, launched
in October and paying a high tax-free 8-3/4 pct on five-year
private investments between 25 and 5,000 stg. A spokesman said
the suspension was just a reaction to yields on national
savings bonds being way out of line with the rest of the
market.
    The move was followed by a surprise sell-out within minutes
today of a Bank of England one-billion stg tap issue, the
second such issue in as many weeks, analysts noted.
    They said the near-instant sale of the entire new gilts
issue, for which the Bank of England had required a high 40 pct
downpayment, was clear evidence that the market thought rates
had to drop sooner rather than later.
    The sale of the tranche of 8-3/4 pct treasury bonds due
1997 occurred in an active, bullish gilts market as downward
pressure on money market rates remained intact, with the
bellwether three-month interbank rate down 1/8 point at
10-9-7/8 pct.
     It coincided with another strong sterling rally which
pushed the pound to four-year highs against the dollar.
    "That government stock disappeared very quickly indeed," said
Stephen Lewis, head of economic research at stockbrokers
Phillips and Drew; "It is an indication that the market believes
rates are going to fall further ... At least by a half-point
immediately after the budget (on March 17), and some people
hope for more."
    Stockbrokers James Capel said in a comment the move by the
National Savings Department was "of considerable significance."
    It said, "the real message ... Is that the decks are being
quickly cleared so as to facilitate a speedy decision by the
building societies to cut their rates when the inevitable cut
in bank base rates to 10 pct materialises."
    Building societies have said a drop in bank base rates
would normally have to exceed half a point to give rise to a
reduction in mortgage lending rates.
    Lewis of Phillips and Drew said he too believed the
National Savings issue suspension may reflect new U.K. Treasury
policy to point building societies towards a mortgage rate cut.
    "National Savings has been competing too effectively with
the building societies of late. Building society income has
been depressed in recent months," he said.
    He and other analysts said Chancellor of the Exchequer
Nigel Lawson was keen to see mortgage rates fall to keep a lid
on U.K. Inflation.
    Underlying upward pressure on prices is stronger in Britain
than in most other Western economies with inflation seen rising
well above four pct this year and above five pct in 1988 after
last year's 3.7 pct.
    Emphasising the impact of mortgage rates on consumer
prices, Lewis said a one-point cut in building society rates
would reduce inflation in Britain by about 0.4 pct.
    But Lewis and others noted that building societies had been
complaining to the government about intense competition from
National Savings, which they argued reduced the scope for early
mortgage rate cuts.
    "The Chancellor need not be worried about losing some PSBR
funding from National Savings, but he must be taking the
building societies' criticism to heart. It looks like the
National Savings move reflects this," one senior dealer said.
    A Savings Department spokesman refused to comment on this
interpretation, saying the suspension of the issue was merely a
reaction to the recent fall in U.K. Interest rates, which had
pushed yields on national savings bonds way out of line with
the rest of the market.
    "We are not politically motivated ... Funding was just
becoming too expensive and we don't need all that money," he
told Reuters, adding the department had suspended issues at
least twice in the past, when offered interest rates were above
or below market rates.
    He said demand for the issue had risen sharply of late as
U.K. Money market rates continued their steady decline and
income was threatening to overshoot an unofficial three billion
stg target set for fiscal 1986 ending March 31.
    In the first 10 months of fiscal 1986, National Saving's
contribution to government funding totalled 2.72 billion stg,
compared with 2.01 billion stg in the same period of the
previous year, official figures show.
    Figures for February, out on Monday, are expected to show a
further increase of between 300 and 400 mln stg, pushing the
total for 11 months above target, government officials said.


.I 8683
.C
earn
.W
NICOR INC <GAS> REGULAR DIVIDEND SET.
    NAPERVILLE, ILL., March 11 -
    Qtly div 45 cts vs 45 cts previously
    Pay May 1
    Record March 31


.I 8684
.C
earn
.W
HANDLEMAN CO <HDL> SETS QUARTERLY.
    TROY, Mich., March 11 -
    Qtly div 14 cts vs 14 cts prior
    Pay April 10
    Record March 27


.I 8685
.C
earn
.W
PERINI CORP <PCR> SETS QUARTERLY.
    FRAMINGHAM, Mass., March 11 -
    Qtly div 20 cts vs 20 cts prior
    Pay June 16
    Record May 22


.I 8686
.C
acq
.W
******JONES AND VINING SAID VULCAN CORP OFFERS FIVE DLRS A SHARE FOR JONES.
Blah blah blah.

.I 8688
.C
earn
.W
INTERNATIONAL BANKNOTE CO INC <IBK> 4TH QTR LOSS.
    NEW YORK, March 11 -
    Oper shr loss 11 cts vs loss 14 cts
    Oper net loss 1,963,000 vs loss 2,199,000
    Revs 17.5 mln vs 40.9 mln
    Year
    Oper shr profit nine cts vs profit two cts
    Oper net profit 1,555,000 vs 456,000
    Revs 86.3 mln vs 143.7 mln
    NOTE: Net excludes extraordinary tax charges of 115,000
dlrs vs 995,000 dlrs in quarter and credits 8,096,000 dlrs vs
1,173,000 dlrs in year.
    1985 year net includes pretax gain 7,400,000 dlrs from
termination of pension plan.
    1985 net includes pretax charge 1,200,000 dlrs in quarter
and gain 1,400,000 dlrs in year from restructuring and
consolidation.
    1985 quarter net includes 1,480,000 dlr tax credit.
    1986 year net includes pretax gain 17.2 mln dlrs from sale
of foreign subsidiary.


.I 8690
.C
earn
.W
PPG INDUSTRIES <PPG> SEES GROWTH IN 1987.
    PITTSBURGH, March 11 - PPG Industries Inc will continue to
show earnings growth in 1987 despite a difficult economic
climate, the company said in its annual report, mailed to
shareholders today.
    For 1986, the company's earnings rose five pct, to 316 mln
dlrs, on revenues that increased eight pct, to 4.7 billion
dlrs. Earnings per share were 2.66 dlrs, compared with 2.27
dlrs.
    The company added that in 1986 its return on equity reached
17.3 pct, up from 15.5 pct in 1985 and close to its goal of 18
pct.


.I 8692
.C
acq
.W
BELGIAN MINISTER UNVEILS PRIVATISATION PLAN.
    BRUSSELS, March 11 - Belgian Budget Minister Guy
Verhofstadt has proposed a plan to sell off shares in several
state-owned enterprises, including national airline Sabena and
the postal and telecommunications authority, government sources
said.
    They said the plan could raise more than 25 billion francs
in revenue over the next five years according to Verhofstadt's
projections, helping the government to reduce its huge budget
deficit, targetted this year at 418 billion francs.
    But the scheme had received a guarded reception from the
Social Christian parties in Belgium's centre-right coalition
when Verhofstadt unveiled it at a cabinet meeting yesterday.
    Discussion of the plan was likely to be long and difficult,
the sources said.
    Verhofstadt proposes beginning the selloffs in the last
quarter of 1987, with the sale of 30 to 40 pct of state
investment company SNI. He expects the sale to raise three
billion francs, they added.
    A 25 pct share in Sabena would be sold in mid-1989 for 1.5
billion francs, while 50 pct of the postal and
telecommunications authority would be sold off in two stages in
mid-1990 and early 1992, raising at least seven billion francs.
    Also on Verhofstadt's list are the Maritime Transport
Authority, leading gas distributor Distrigaz, CGER savings
bank, CGER, and several other credit institutions.
    Le Soir daily quoted CGER vice-president Paul Henrion as
expressing strong opposition to the privatisation of his bank.
    "Public company we are and public company we wish to stay,"
Henrion told the paper.


.I 8695
.C
earn
.W
SCIENCE DYNAMICS CORP <SIDY> YEAR NET.
    CHERRY HILL, N.J., March 11 -
    Shr 24 cts vs 13 cts
    Net 704,803 vs 385,081
    Revs 5,669,682 vs 4,142,095


.I 8697
.C
earn
.W
FOODARAMA SUPERMARKETS INC <FSM> 1ST QTR JAN 31.
    FREEHOLD, N.J., March 11 -
    Shr 42 cts vs 35 cts
    Net 570,000 vs 476,000
    Sales 122.4 mln vs 123.1 mln
    NOTEL Prior year net includes pretax charge 453,000 dlrs
for reopening of eight stores.


.I 8698
.C
earn
.W
ENGINEERING MEASUREMENTS CO <EMCO> 3RD QTR NET.
    LONGMONT, Colo., March 11 - Qtr ends Jan 31
    Shr four cts vs 12 cts
    Net 102,508 vs 264,910
    Revs 2,278,083 vs 2,536,312
    Nine mths
    Shr 18 cts vs 15 cts
    Net 489,253 vs 404,877
    Revs 6,679,745 vs 6,613,551
    NOTE: Excludes discontinued operations gain of 40,519 dlrs
in the third quarter fiscal 1986, and loss of 9,666 dlrs in the
nine months fiscal 1986.


.I 8699
.C
earn
.W
BOOTHE FINANCIAL CORP <BCMP> 4TH QTR NET.
    SAN FRANCISCO, March 11 -
    Shr one ct vs 24 cts
    Net 43,000 vs 1,032,000
    Revs 10 mln vs 4.9 mln
    Avg shrs 3.7 mln vs 4.3 mln
    12 mths
    Shr 1.02 dlrs vs 1.62 dlrs
    Net 3,950,000 vs 7,308,000
    Revs 30.8 mln vs 33.3 mln
    Avg shrs 3.9 mln vs 4.5 mln
    NOTE: 1985 restated to reflect tax loss carryforwards.


.I 8700
.C
earn
.W
CONSOLIDATED NATURAL GAS CO <CNG> IN PAYOUT.
    PITTSBURGH, March 11 -
    Qtly div 37-1/2 cts vs 37-1/2 cts prior
    Pay May 15
    Record April 15


.I 8701
.C
earn
.W
SANDUSKY PLASTICS INC <SPI> SETS QUARTERLY.
    SANDUSKY, Ohio, March 11 -
    Qtly div six cts vs six cts prior
    Pay March 31
    Record March 20


.I 8703
.C
acq
.W
REXNORD <REX> TO SELL RAILWAY EQUIPMENT UNIT.
    BROOKFIELD, WIS., March 11 - Rexnord nc said it signed a
definitive agreement to sell its Railway Maintenance Equipment
Co subsidiary to Banner Industries Inc. Terms were withheld.
    It said Railway Maintenance had 1986 sales of 16 mln dlrs
and employs 100 people.
    Rexnord said the sale is part of a major program to divest
several of its businesses representing about 200 mln dlrs in
net assets. Still to be divested are the Process Machinery
Division with sales of 137 mln dlrs and Mathews Conveyer Co,
with sales of 83 mln dlrs.


.I 8705
.C
sugar
.W
LICHT SEES STAGNANT EUROPEAN BEET AREA.
    RATZEBURG, March 11 - The overall area devoted to sugar
beet in Europe is forecast to remain stagnant this year at 7.22
mln hectares compared with 7.21 mln ha in 1986, West German
statistician F.O. Licht said.
    It was feared that the recent steep rise in sugar prices
would have a marked effect on planting intentions this year,
Licht said, but judging by this first estimate the effect was
probably minimal.
    The total beet area in the European Community is forecast
to fall two pct to 1.85 mln ha against 1.89 mln in 1986.
    The total Western Europe area is put at 2.49 mln ha,
against 2.50 mln in 1986. Eastern Europe area is forecast at
4.73 mln ha against 4.72 mln.
    Individual West Europe country estimates, in 1,000 hectares
(with 1986 figures in brackets), are, Belgium/Luxembourg 114
(118), Denmark 69 (69), France 419 (421), Greece 35 (44),
Ireland 36 (38), Italy 270 (275), Netherlands 129 (138),
Portugal 1 (1), Spain 192 (190), U.K. 200 (201), West Germany
385 (399), Austria 32 (28), Finland 30 (31), Sweden 51 (52),
Switzerland 15 (14), Turkey 355 (340), Yugoslavia 160 (136).
    Eastern Europe plantings are forecast as follows, USSR 3400
(3440), Albania 10 (9), Bulgaria 52 (50), Czechoslovakia 195
(196), East Germany 210 (205), Hungary 108 (96), Poland 460
(440), Romania 295 (280).
    On the basis of average yields this year, Licht said these
area forecasts pointed to a total European beet sugar crop in
1987/88 of 29.8 mln tonnes, raw value, down from 31.4 mln
tonnes in 1986/87. Licht said sugar yields were fairly high
last season, thanks to favourable weather, and this increases
the chances of a significant reduction in production in
1987/88.
    Based on average yields, EC beet sugar production could
fall nearly 10 pct this year to 13.5 mln tonnes from 14.9 mln
in 1986/87, while total Western Europe production could be 16.9
mln tonnes against 18.1 mln. Eastern Europe production could be
12.9 mln tonnes against 13.3 mln in 1986/87.


.I 8706
.C
gold
.W
BRITAIN TO MINT NEW "BRITANNIA" GOLD COIN.
    LONDON, March 11 - Britain will from next autumn mint and
market a new bullion coin called the "Britannia" containing one
ounce of 24 carat gold, together with bullion coins of smaller
denominations, a Treasury official said.
    The new investment coin, to be sold worldwide, will
fluctuate in price according to the international price of
gold.
    The smaller coins will be in denominations of a half ounce,
a quarter ounce and a tenth of an ounce.

.I 8708
.C
acq
.W
MEESE SEES A PLUS IN CHRYSLER-AMC MERGER.
   WASHINGTON, March 11 - Attorney General Edwin Meese said he
saw some benefit in the proposed purchase of American Motors Co
<AMO> By Chrysler Corp <C> in that it would return the smallest
of the U.S. auto manufacturers to American hands.
    Meese told the House Appropriations Subcommittee that
consideration would be part of the Justice Department's review
of the proposed merger. He said the agency has not yet received
a formal notice of the merger which would start the review
process.
   Chrysler has made a 1.3 billion dlr bid to buy AMC from its
French parent Renault.
    "I think one of the things that has to be recognized in that
merger is that it appears, at least, that a good portion of the
ownership of American Motors, which has been in overseas hands
will be put back in American hands," Meese told the
subcommittee.
    "That may be one of the factors that would be weighed in the
judgment," he added.
    Renault currently holds about 46 pct of AMC.


.I 8709
.C
ship
.W
DUTCH PARLIAMENT OFFERS LITTLE HELP IN PORT ROW.
    ROTTERDAM, March 11 - Dutch members of parliament said they
could do little to help resolve the dispute over redundancies
in Rotterdam port's general cargo sector and urged the union
and employers to sort out their differences themselves.
    Both sides gave evidence to the all-party standing
committee on Social Affairs today, but committee members said
they saw little chance of parliamentary intervention.
    The dispute began on January 19 in protest at employers'
plans for 800 redundancies from the 4,000-strong workforce,
starting with 350 this year. The port and transport union, FNV,
is to challenge the redundancies in an Amsterdam court
tomorrow.


.I 8710
.C
acq
.W
SOSNOFF SAYS CAESARS <CAW> OFFERED STOCK BUYBACK.
    WASHINGTON, March 11 - Martin Sosnoff, who has offered to
buy Caesars World Inc for 28 dlrs a share, said senior
officials of the company have offered to buy back the Caesars
stake he already holds, now 13.6 pct of the total outstanding.
    In a filing with the Securities and Exchange Commission,
Sosnoff, a New York investor and money manager, said the offers
to buy back his stock occurred "on several occasions during the
past year."
    The offers were made by several Caesars World
representatives, including its chairman, Henry Gluck, he said. 
   Sosnoff said he rejected all of the proposals.
    The Caesars World official suggested various forms of
payment for Sosnoff's stake, including other securities of the
company and cash, he said. Sosnoff did not detail the value of
the proposed compensation.
    Also suggested was a deal involving "put" and "call" option
regarding Sosnoff's Caesars World holdings, he said.
    The proposed deals would have also included a "standstill"
agreement, which would have restricted Sosnoff's right to buy
more Caesars World stock or "to take any action adverse to
incumbent management," he said.
    Sosnoff's report on the offers he received for his Caesars
World shares were amended to his official offer to purchase the
company, as well as reported to the SEC.
    Sosnoff now holds about 4.1 mln Caesars World shares, or
13.6 pct of the company's 30 mln shares outstanding.
    The Sosnoff offer to buy the shares of the company he does
not already hold has been valued at 725.2 mln dlrs.


.I 8711
.C
crude;nat-gas;
.W
ENERGY/FOREIGN INVESTORS.
    By JULIE VORMAN, Reuters
    HOUSTON, March 11 - Lured by the weakening dollar and the
conviction that oil prices are poised for a rebound, European
energy companies are buying up cheap U.S. oil and gas reserves
to replenish their supplies, oil industry analysts said.
    They said owning oil reserves in a politically stable
United States is good insurance against future shortages.
However, the quick pace of foreign investment has heated up
competition among European firms, well-heeled U.S.
institutional investors and major oil companies to snare choice
domestic oil properties.
    Strevig and Associates, a Houston firm that tracks oil and
gas reserve sales, said growing interest among foreign buyers
had helped push reserve prices in recent months higher. All
buyers of U.S. reserves paid a median price of 6.45 dlrs a
barrel of oil during the fourth quarter of 1986 for
acquisitions, up from 5.33 dlrs in the third quarter and five
dlrs in the second quarter, according to the firm's research.
    "Foreign investors have been here nibbling a long time, but
we're seeing new names and smaller companies coming in," said
Arthur Smith, an oil property appraisal specialist and
president of John S. Herold Inc in Greenwich, Conn.
    "Europeans, especially, do not have much indigenous oil and
gas and realize the tide will eventually turn in favor of the
Organization of Petroleum Exporting Countries," he added.
    Smith and other oil industry analyst and economists believe
the trend in foreign investments will continue in 1987 because
of the fall in value of the U.S. dollar, the perception that
oil prices have hit bottom and the fact that it is cheaper to
buy new reserves than to explore for them.
    Plenty of properties are available on the market, thanks to
the need of many companies to raise cash for debt payments and
general restructuring throughout the oilpatch.
    In two of the biggest transactions of recent months,
French-owned Minatome Corp., a unit of <Total Compagnie
Francaise des Petroles>, spent more than 230 mln dlrs to
separately acquire oil assets of Texas International <TEICC>
and Lear Petroleum Partners <LPP>. A spokesman for Minatome
said the company is searching for additional acquisitions.
    A partnership of two Belgian-owned firms, <Petrofina S.A.>
and <Cometra Oil S.A.> paid 150 mln dlrs late last year to buy
virtually all the exploration assets of the Williams Cos <WMB>,
the Oklahoma pipeline firm.
    But Japanese investors prefer entering into joint ventures
with experienced U.S. companies to explore for new oil. Japan's
<Nippon Oil> is a partner of Texaco Inc's <TX> Texaco USA in a
100 mln dlrs U.S. drilling program, and has joined with
Dupont's <DD> Conoco Inc in a similar 135 dlrs mln deal.
    Most buyers said the pay-back period of a property, its
geographic location and the lifting cost of the crude oil are
more important factors in evaluating potential acquisitions
than relying on a simple price-per-barrel formula.
    Rich Hodges, a Houston-based land manager representing
International Oil and Gas Corp, a partnership of <Preussag
Corp> and <C. Deilmann Inc> of West Germany, said the firm had
earmarked at least 50 mln dlrs to spend on oil reserves in
Texas, Oklahoma or Louisiana in the coming months.
    But he called that a small amount compared to the amount
other investors have for acquisitions. PaineWebber's Geodyne
Energy Income Fund, for example, has said it plans to spend up
to 300 mln dlrs on oil and gas properties.
    "The competition is stiff, not only from other foreign
investors but from the brokerage houses and U.S. oil
companies," he said. "Our company is shopping around because we
feel it's substantially less risky than pure exploration. If
you're going to take the risk inherent in exploration, you need
prices higher than the current market," he added.
    In addition to the foreign investors and U.S. brokerage
houses, analysts said many of the major oil companies were also
competing for prime properties.
    Houston-based Shell Oil Co, a unit of Royal Dutch/Shell Group
<RD>, has been one of the most active companies in buying and
selling reserves, Smith said. Since 1982, Shell has acquired
two billion dlrs in new reserves, including 470 mln barrels of
oil equivalent at a net cost of 2.80 dlrs a barrel, he said.
    "Buying reserves is a good strategy for most of these
companies," Smith said. "Domestic production has dropped by one
mln barrels a day because of cutbacks in drilling and it may
drop by another one mln barrels a day in 1988."


.I 8713
.C
gnp
.W
AUSTRIAN 1987 GROWTH SEEN BETWEEN 0.5 AND 1.5 PCT.
    VIENNA, March 11 - A meeting of leading politicians,
bankers and economists has forecast Austrian real gross
domestic product growth for this year at between 0.5 and 1.5
pct, a government spokesman said.
    This compared with a two pct growth forecast made by the
semi-official Institute for Economic Research (WIFO) last
December.
    Helmut Kramer, spokesman for Chancellor Franz Vranitzky,
told Reuters that the forecast had been made during the meeting
attended by Vranitzky, Finance Minister Ferdinand Lacina,
National Bank President Stefan Koren and a WIFO representative.
    Economists have been cutting growth forecasts recently
mainly due to expectations of a poor export performance this
year, notably to Eastern Europe and oil exporting states.
    Hannes Androsch, general director of
Creditanstalt-Bankverein <CABV.VI>, today put 1987 GDP growth
at between one and 1.5 pct.
    Kramer also said the meeting had heard that unemployment
for the year would be above the 5.5 pct forecast, but was
unlikely to be more than six pct.


.I 8714
.C
earn
.W
<FOR BETTER LIVING INC> 4TH QTR NET.
    SAN JUAN CAPISTRANO, Calif., March 11 -
    Shr profit primary 91 cts vs loss 86 cts
    Shr profit diluted 90 cts vs loss 86 cts
    Net profit 787,000 vs loss 751,000
    Sales 20 mln vs 12.5 mln
    Year
    Shr profit profit 2.63 dlrs vs profit five cts
    Shr profit diluted 2.59 dlrs vs profit five cts
    Net profit 2,273,000 vs profit 43,000
    Sales 70.1 mln vs 47.1 mln
    Note: Prior qtr and year figures include gains on disposal
of discontinued operations of 76,000 dlrs and 79,000 dlrs,
respectively.


.I 8719
.C
earn
.W
NEWPORT ELECTRONICS INC <NEWE> 4TH QTR NET.
    SANTA ANA, Calif., March 11 -
    Oper shr loss nine cts vs loss four cts
    Oper net loss 108,000 vs loss 55,000
    Sales 3,029,000 vs 2,694,000
    Year
    Oper shr profit 42 cts vs profit 15 cts
    Oper net profit 511,000 vs profit 177,000
    Sales 13.3 mln vs 11.2 mln
    Avg shrs 1,233,136 vs 1,217,981
    Note: Current qtr and year figures exclude operating loss
carryforward gain of 26,000 dlrs vs gain of 88,000 dlrs in
prior year periods.


.I 8720
.C
earn
.W
TRANSCO EXPLORATION PARTNERS LTD <EXP> IN PAYOUT.
    HOUSTON, March 11 -
    Qtly div 44 cts vs 44 cts prior
    Pay June One
    Record May Eight


.I 8721
.C
earn
.W
TRANSCO ENERGY CO <E> SETS QUARTERLY.
    HOUSTON, MArch 11 -
    Qtly div 68 cts vs 68 cts prior
    Pay June One
    Record May Eight


.I 8730
.C
earn
.W
TOTAL ERICKSON RESOURCES LTD <TLEXF> YEAR NET.
    VANCOUVER, British Columbia, March 11 -
    Shr profit nine cts vs loss 45 cts
    Net profit 2,500,000 vs loss 9,900,000
    Revs 16,800,000 vs 3,300,000
    Note: 1986 net includes 2.6 mln dlr or nine ct a shr
writedown of nine pct stake in <Trans-Canada Resources Ltd>.
    1985 results reflect only six mths of mining operations due
to merger of Erickson Gold Mines Ltd and Total Eastcan
Exploration Ltd on June 30, 1985.


.I 8734
.C
acq
.W
VERSAR <VSR> TO BUY MARIETTA <ML> UNIT.
    SPRINGFIELD, Va., March 11 - Versar Inc said it has agreed
in principle to acquire Martin Marietta Corp's Martin Marietta
Environmental Systems unit for about 5,300,000 dlrs.
    Versar said it would use its working capital and an
established life of credit to find the purchase, which is
subject to approval by both boards and is expected to be
completed in April.
    Marietta Environmental had 1986 revenues of about nine mln
dlrs.
    Versar said the acquisition should have a "moderately"
favorable effect on its earnings this year.


.I 8738
.C
interest
.W
U.K. BANKS OFFER FIXED-RATE MORTGAGES AT 10.2 PCT.
    LONDON, March 11 - Two major U.K. Clearing banks announced
they will offer a total of 800 mln stg in new mortgages at a
fixed interest rate of 10.2 pct for the first three years,
below current bank base lending rates of 10.5 pct.
    Midland Bank Plc <MDBL.L> said it has initially allocated
500 mln stg for home loans at this rate, while Lloyds Bank Plc
<LLOY.L> will offer 300 mln stg.
    Earlier this week, Midland said it would cut its standard
rate of mortgage payment to 11.5 pct from April 1, following a
half a percentage point reduction in leading banks' base
lending rates from 11 pct.
    Building society and other bank mortgage rates are largely
still well above the new base rate level, although last year
Lloyds offered a fixed rate of 9.9 pct on certain home loans.
    A Midland spokesman said his bank calculated that at the
current level of 2.7 billion stg, its existing mortgage book
accounts for about 5 pct of the total British home loan market.
    Lloyds said it has 3.6 billion stg in outstanding mortgage
loans, but had not estimated its total market share.
    Among other major clearing banks, Barclays Plc <BCS.L> and
National Westminister Bank Plc <NWBL.L> said they had no
immediate plans to announce similar fixed rate schemes.


.I 8741
.C
acq
.W
JIM WALTER <JWC> BUSY OWENS-CORNING <OCF> PLANT.
    TAMPA, Fla, March 11 - Jim Walter Corp said it completed
the acquisition of Owens-Corning Fiberglas Corp's mineral
ceiling and fiberboard plant in Meridian, Miss.
    Terms were not disclosed
    The plant's operations will complement existing ceiling
materials production within jim Walter's building material's
group, which last year generated income of 54.9 mln dlrs on
sales of 740 mln dlrs.


.I 8743
.C
ship
.W
AMERICAN PRESIDENT <APS> TO LEASE MORE SHIPS.
    OAKLAND, Calif., March 11 - American President Cos Ltd said
its American President Lines shipping subsidiary  obtained
final approval from U.S. and Japanese authorities to lease four
new ships from Lykes Bros Co.
    The move will will enable it to boost service in the
Pacific by 15 pct in 1987, American President said.
    The company said it will lease the ships for three years
and hold two additional three-year options.
    It said American President Lines is currently operating at
capacity in the Pacific and the new ships will arrive in time
for the normal demand surge of the spring and summer seasons.


.I 8744
.C
earn
.W
BOWNE AND CO INC <BNE> SETS STOCK SPLIT.
    NEW YORK, March 11 - Bowne and Co Inc said its board
declared a two-for-one stock split, payable May 10 to holders
of record April 17.


.I 8746
.C
acq
.W
INVESTMENT FIRM BOOSTS AMERFORD <AMRF> STAKE.
    WASHINGTON, March 11 - Louart Corp, a Los Angeles
investment firm, said it raised its stake in Amerford
International Corp to 105,615 shares, or 7.8 pct of the total
outstanding, from 69,715 shares, or 5.2 pct.
    In a filing with the Securities and Exchange Commission,
Louart said it bought 35,900 Amerford common shares between
March 19, 1986 and Jan 30, 1987 at prices ranging from 3.92 to
4.29 dlrs a share.
    It said it bought the shares for investment purposes and
might increase its stake in the future.


.I 8751
.C
gnp
.W
CORRECTED - AUSTRIA 1987 GROWTH FORECAST REVISED.
    VIENNA, March 11 - Austrian gross domestic product growth
for this year is likely to be between 0.5 and 1.5 pct, Helmut
Kramer, head of the semi-official Institute for Economic
Research (WIFO) said.
    This compared with a two pct growth forecast made by the
WIFO last December.
    Kramer made the forecast at a meeting today on Austria's
economic outlook also attended by Chancellor Franz Vranitzky,
Finance Minister Ferdinand Lacina and National Bank President
Stefan Koren.


.I 8752
.C
acq
.W
FIRST BOSTON <FBC> SWISS AFFILIATE BOOSTS STAKE.
    WASHINGTON, March 11 - Financiere Credit Suisse - First
Boston, the Swiss affiliate of First Boston Inc, said it raised
its stake in the company to 11,262,307 shares, or 35.5 pct of
the total, from 10,262,307 shares, or 32.8 pct.
    In a filing with the Securities and Exchange Commission,
Financiere Credit Suisse said it bought 870,100 First Boston
common shares between Feb 10 and 27 at prices ranging from
48.125 to 53.000 dlrs a share, or 22.5 mln dlrs total.
    It said it bought the shares as part of an agreement to
raise its minority stake in First Boston to 40 pct, the same
stake level First Boston holds in Financiere Credit Suisse.


.I 8753
.C
earn
.W
NUMAC OIL AND GAS LTD <NMC> YEAR NET.
    EDMONTON, March 11 -
    Oper shr 23 cts vs 77 cts
    Oper net 5,255,179 vs 17.6 mln
    Revs 37.8 mln vs 73.7 mln
    NOTE: Cash flow 19.5 mln dlrs or 86 cts shr vs 36.7 mln
dlrs or 1.62 dlrs shr.
    1985 net excludes 32 ct shr loss from discontinued
operations.
    Gross proven and probable reserves of crude oil and natural
gas liquiids 18.4 mln barrels, off 7.6 pct from a year before.


.I 8754
.C
earn
.W
FARAH <FRA> AGAIN OMITS QUARTERLY DIVIDEND.
    EL PASO, Texas, March 11 - Farah Inc said it omitted its
quarterly common stock dividend for the second consecutive
quarter.
    The company, which last paid a quarterly common dividend of
22 cts a share in December, said it will consider future
dividend payments on the basis of improved profitability and
cash flow.
    Farah said it expects to turn a profit for the balance of
1987. For its first quarter ended January 31, Farah lost
1,891,000 dlrs, or 32 cts a share, on sales of 71 mln dlrs.
    In addition, Farah said it received shareholder approval to
change its name to Farah Inc from Farah Manufacturing Co.


.I 8756
.C
crude
.W
JORDAN-PETROCANADA AGREE OIL EXPLORATION PROJECT.
    AMMAN, March 11 - A two-year project to search for oil and
gas in Jordan was agreed in Amman by Jordan's Natural Resources
Authority (NRA) and the Canadian company, Petrocanada
International Assistance Corporation (PCIAC).
    The 19.1 mln dlr assistance agreement was signed by
Jordan's Minister of Energy Hisham al-Khatib and PCIAC chairman
Peter M. Towe.
    PCIAC is a Canadian government corporation providing
assistance to countries like Jordan to reduce their dependence
on oil imports, Towe said.


.I 8759
.C
earn
.W
NUMAC OIL <NMC> SEES RESULTS IMPROVING.
    EDMONTON, March 11 - Numac Oil and Gas Ltd said it expects
significant improvement in operating performance during 1987.
    The company today reported 1986 earnings from continuing
operations of 5,255,179 dlrs, down from 17.6 mln dlrs a yuear
earlier, due to lower prices for crude oil and pipeline
capacity constraints.
    Numac said changes introduced by federal and provincial
governments during 1986 should help results.


.I 8760
.C
grain;corn;
.W
DOLE SAYS 0/92 OPTION SHOULD BE CONSIDERED.
    WASHINGTON, March 11 - U.S. Senate Republican leader Robert
Dole said Congress should consider legislation to apply the
so-called 0/92 option to producers of major commodities.
    Dole told the National Corn Growers Association that he
thought the proposal, supported by the Reagan administration,
"should be seriously considered" because a refusal to do so could
"play into the hands of those who want mandatory controls" placed
on production.
    However, Dole did not say whether he would support the 0/92
option, which would offer producers at least 92 pct of their
income support payments regardless of how much they planted.
    The Senate Republican leader said the 0/92 option posed two
problems. First, it is viewed, he said, by some as welfare. In
addition, debate on the proposal could open up the whole farm
bill, Dole said.
    Dole also repeated his call for an across-the-board export
enhancement program, saying a subsidy offer to the Soviet Union
could help improve U.S. relations with that country.
    Dole said that the United States has made the decision to
trade with Moscow and that it's important to offer competitive
prices.
    The senator predicted Congress would have to decide this
year whether to require an expansion of the export subsidy
program, which currently targets benefits to recapture markets
lost to other suppliers which subsidize.
    Dole, who last year pledged to offer legislation to require
a marketing loan for major crops but never did so, again called
for the marketing loan for wheat and feedgrains.
    The Reagan administration's proposed farm policy changes
"are not going anywhere" this year, Dole said, singling out the
proposal to cut target prices 10 pct per year.
    Asked by reporters after his speech whether he sensed a
shift in the State Department towards supporting an export
enhancement initiative for the Soviet Union, Dole said he
didn't see any change.
    Dole also said it would be a very close call in the Senate
whether to open up the farm bill to general debate this year.
    Dole said he was encouraged by the selection of Republican
David Karnes to replace the late Sen. Edward Zorinsky (D-Neb.)


.I 8763
.C
earn
.W
******H.J. HEINZ CO 3RD QTR SHR 55 CTS VS 46 CTS.
Blah blah blah.

.I 8764
.C
earn
.W
******H.J. HEINZ RAISES QUARTERLY TO 28 CTS FROM 25 CTS.
Blah blah blah.

.I 8766
.C
earn
.W
<RANCHMEN'S RESOURCES LTD> YEAR LOSS.
    CALGARY, Alberta, March 11 -
    Shr loss seven cts vs loss 3.83 dlrs
    Net profit 1,700,000 vs loss 13,900,000
    Revs 18.7 mln vs 25.6 mln
    Note: Current shr after preferred dividends of 2.0 mln dlrs
    Prior shr and net includes 34.5 mln dlr writedown on oil
properties


.I 8768
.C
grain;gas;corn;
.W
DOLE MULLS BILL TO EXTEND ETHANOL TAX EXEMPTION.
    WASHINGTON, March 11 - U.S. Senate Republican leader Robert
Dole (R-Kan.) said he and a group of Republican lawmakers are
considering introducing legislation to extend the ethanol tax
exemption through the year 2000.
    Dole, addressing the National Corn Growers Association
board, said the proposal was under consideration by a rural
task force of Republican members of Congress and governors.
    Gasoline containing at least 10 pct ethanol now receives a
six cents per gallon exemption from a nine cent federal excise
tax. The exemption is to expire the end of 1992.
    Ethanol is produced primarily by a few large agribusiness
firms including Archer Daniels Midland (ADM) and A.E. Staley.
The tax exemption has helped bolster ethanol production despite
a sharp drop in the prices of competing crude oil.


.I 8769
.C
acq
.W
OAK INDUSTRIES <OAK> TO BUY REXNORD <REX> UNIT.
    SAN DIEGO, Calif, March 11 - Oak Industries said it signed
a definitive agreement to buy the stock of Rexnord Inc's
Railway Maintenance Equipment Co unit, for an undisclosed sum.
    The company said Railway Maintenance had 1986 revenues of
16 mln dlrs.
    Oak said the acquisition is part of its two-tier strategy
of buying releated and unrelated businesses.
    Oak had a tax loss carryforward of 125 mln dlrs at the end
of 1986.


.I 8770
.C
earn
.W
SUMITOMO BANK <SUMI> DECLARES STOCK DIVIDEND.
    SAN FRANCISCO, March 11 - Sumitomo Bank of California said
it declared a 7-1/2 pct stock dividend in addition to its
regular quarterly cash dividend of 29 cts per share.
    Both dividends are payable April 27 to shareholders of
record March 31, the company said.


.I 8771
.C
earn
.W
LSB BANCSHARES INC <LXBK> RAISES PAYOUT.
    LEXINGTON, N.C., March 11 -
    Qtly div 18 cts vs 17 cts prior
    Pay April 15
    Record April One


.I 8773
.C
earn
.W
H.J. HEINZ CO <HNZ> 3RD QTR JAN 28 NET.
    PITTSBURGH, March 11 - 
    Shr 53 cts vs 46 cts
    Qtly div 28 cts vs 25 cts prior
    Net 74.7 mln vs 63.2 mln
    Revs 1.08 billion vs 1.01 billion
    Nine mths
    Shr 1.78 dlrs vs 1.60 dlrs
    Net 244.4 mln vs 219.7 mln
    Revs 3.33 billion vs 3.15 billion
    Note: Dividend payable April 10 to shareholders of record
March 23.


.I 8775
.C
silver;copper;zinc;
.W
PERU GUERRILLAS INTERRUPT TRAIN ROUTE TO MINES.
    LIMA, March 11 - Maoist guerrillas using dynamite derailed
two locomotives and four train wagons, interrupting traffic on
Peru's sole railway line linking the capital to the central
Andes, where most of the country's mining centres are located,
authorities said.
    Damages was estimated at 800,000 dlrs in the dynamite blast
yesterday at Chacapalca, where the explosion wrecked the train
laden with minerals and 45 metres of the railway line.
    Crews hoped to restore traffic to the line later today
after clearing the damaged train and repairing the tracks at
Chacapalca, 225 km east of the Capital, Lima.
    An official at Mineroperu comercial (Minpeco), Peru's state
minerals marketing firm, said the agency was assessing the
situation. There had not been a declaration of force majeure on
contracts to ship minerals abroad.
    Foreign sales of silver, copper, zinc and other minerals
earn Peru over half of its export income. Most of the minerals,
extracted and refined in the central peruvian andes, are
shipped down the central railway to the lima port of callao.


.I 8777
.C
acq
.W
WALL STREET STOCKS/TENNECO INC <TGT>.
    NEW YORK, MARCH 11 - Tenneco Inc, a company that has long
been rumored to be a takeover candidate, rose sharply today
when speculation surfaced that investor T. Boone Pickens may be
targeting the company for an acquisition, traders and analysts
said.
    Tenneco spokesman Joseph Macrum said "we have no comment to
make whatsoever." Pickens was not available for comment.
    Traders noted that activity in the stock increased today
after a published report linked Pickens to Tenneco.
    Tenneco rose two points to 48-3/4.
    Paul Feretti, an analyst with New Orleans-based Howard,
Weil, Labouisse, Friedrichs, Inc, said he was not surprised at
market rumors that Tenneco might be the target of a takeover
attempt.
    "It's pure market speculation that Boone Pickens and his
group may be interested," Feretti said.
    "But Tenneco would be a challenge to run because of its
sheer size and diversity. Mr. Pickens is a man who likes a
challenge."
    Pickens, who made an unsuccessful attempt to take over
Dallas-based Diamond Shamrock Corp <DIA> last winter, has made
no secret of his plans to acquire additional natural gas
reserves in the belief that gas prices will stabilize sooner
than oil prices. Tenneco holds natural gas reserves estimated
in excess of 3.5 trillion cubic feet, analysts said.
    Feretti conservatively estimated Tenneco's breakup value at
58 dlrs a share and said the company generated a cash flow of
about 10 dlrs a share "which is probably very attractive to
Pickens." Other analysts, however, estimate a breakup value
well into the 60 dlr a share range.
    "I strongly doubt that there is going to be any hostile
takeover," Drexel Burnham Lambert Inc's Houston-based analyst
John Olson said, putting little credence in the rumors.
    "Tenneco is a gargantuan enterprise with seven billion dlrs
in long-term debt and preferred stock outstanding." He said the
buyer would also have to deal with "the intractable problems"
Tenneco faces with its farm equipment unit and energy
businesses.
    Analysts suggested that Tenneco could use a number of
defensive strategies to fend off an unwanted buyer, such as
spin off some of its non-energy businesses directly to
shareholders, buy back shares or create a limited partnership
out of its natural gas pipeline interests.
    An analyst who asked to remain unidentified, discouraged
the Pickens rumor. "Pickens has a plateful already with his
holdings in Burlington Northern and Amerada Hess," he said. "I
don't think he would be willing to take on Tenneco's problems
with Case (the farm equipment unit), which has been losing
about 180 mln dlrs annually and is worth less than a billion
dlrs on the market today."


.I 8778
.C
earn
.W
SOFTWARE AG <SAGA> SEES WEAK RESULTS.
    RESTON, Va., March 11 - Software AG Systems Inc said it
expects to report earnings for its third quarter "substantially
weaker" than earnings of prior periods due to an unexpected
shortfall in U.S. domestic license revenues.
    For the second quarter ended November 30, Software AG
earned 2,089,000 dlrs, down from 5,014,000 dlrs a year before.
In last year's third quarter, Software AG earned 1,598,000
dlrs.


.I 8780
.C
earn
.W
MILES LABORATORIES INC 4TH QTR NET.
    ELKHART, Ind., March 11 -
    Net 3,563,000 vs 2,821,000
    Sales 318.6 mln vs 305.4 mln
    Year
    Net 28,950,000 vs 20,167,000
    Sales 1.22 billion vs 1.17 billion
    Note: Company is a subsidiary of Bayer AG of West Germany.
1986 figures exclude Miles' Bayvet animal health business, sold
Jan. 1, 1986, to Mobay Corp, another Bayer AG affiliate.


.I 8781
.C
acq;silver;
.W
PLACER <PLC> TO INCREASE STAKE IN EQUITY SILVER.
    VANCOUVER, British Columbia, March 11 - <Equity Silver
Mines Ltd> said it agreed to sell 6.6 mln shares of a new class
of par value voting stock to Placer Development Ltd for 37.1
mln dlrs, increasing Placer's stake in Equity to 74.5 pct from
68 pct.
    The transaction is subject to regulatory approval and a
vote by Equity minority shareholders at the April 23 annual
meeting, the company said.
    Proceeds from sale of the shares, priced at 5.625 dlrs
each, will be used to buy and deliver 4,985,000 ounces of
silver to Placer, Equity said.
    Equity Silver said the silver remains to be delivered under
its sale agreement with Placer, after delivery of its 750,000
ounce minimum commitment for 1987.
    Equity said it arranged to acquire 4,985,000 ounces of
silver at 7.40 dlrs an ounces, subject to selling the shares to
Placer.
    Purchase and delivery of the silver to Placer will result
in an after-tax gain of about 6.6 mln dlrs, Equity said.
    It also said the stock and silver transactions will create
a 37,059,000 dlr fund out of which dividends will be paid when
cash is available.
    The cash fund will enable Equity Silver to continue to pay
dividends on its preferred shares and increase the likelihood
that it may be able to pay dividends on its common shares, the
company said.
    It did not elaborate on what common share dividends might
be paid.
    The company normally pays quarterly preferred dividends
totalling 619,000 dlrs from retained earnings, Equity Silver
said.
    Equity Silver had retained earnings of 2,312,000 dlrs at
December 31, 1986.


.I 8782
.C
ship;crude;
.W
BRAZIL'S SARNEY MEETS STRIKES WITH SHOW OF FORCE.
    By Stephen Powell, Reuters
    SANTOS, BRAZIL, MARCH 11 - With troops in place in Brazil's
ports and oil installations, the government of Prersident Jose
Sarney today sought to end a wave of labour unrest by a show of
force.
    Yesterday the government sent thousands of troops supported
in some instances by tanks to occupy nine oil refineries and
six areas of oil production.
    The state-oil company Petrobras requested the intervention
because of a threatened strike by 55,000 oil industry
employees.
    The government had already dispatched more than 1,000
marines to occupy the country's main ports after a national
seamen's strike was ruled illegal last Friday.
    The strike by 40,000 seamen, now in its 13th day,
represents a stern challenge to the government.
    The stoppage has delayed exports at a time when Brazil
desperately needs foreign exchange.
    It was a deterioration in the country's trade balance which
precipitated Brazil's current debt crisis and the decision on
February 20 to suspend interest payments on 68 billion dlrs of
commercial debt.
    There was no sign today of an early end to the seamen's
strike, which has badly hit the port of Santos -- the most
important in South America -- and the country's other main
ports.
    Small groups of marines armed with submachineguns stand on
the quays near the strike-bound ships, but the military
presence here is generally discreet.
    A total of 800 marines are inside the docks but most are
out of sight.
    Yesterday marines and police occupied one ship, the
Docemarte, seamen's leaders said. After explaining to the
captain that the strikers faced up to one year in jail because
the strike was illegal, the men returned to work.
    One of the strike leaders, Elmano Barbosa, said "it is a
psychological war. They are using force and we are using
peaceful methods."
    Port sources said only two Brazilian ships in Santos, the
Docemarte and the Henrique Leal, were working.
    At the seamen's national strike headquarters in Rio de
Janeiro, spokesmen say a total of about 190 ships are
strike-bound in Brazil and in foreign ports.
    Contradicting earlier reports from strike headquarters in
Rio de Janeiro, seamen in Santos said the strikers on board
ships here were not running out of food.
    The current labour unrest is the worst faced by Sarney's
civilian government since it came to power two years ago.
    Yesterday, in a separate protest, hundreds of thousands of
farmers held rallies directed largely against high bank
interest rates.
    The current rash of labour unrest in industry and
agriculture stems from the failure of the government's
now-collapsed Cruzado Plan price freeze.


.I 8783
.C
earn
.W
INTELLIGENT SYSTEMS MLP <INP> 3RD QTR DEC 31 NET.
    NORCROSS, Ga., March 11 -
    Shr profit 20 cts vs profit five cts
    Net profit 2,273,000 vs profit 563,000
    Rev 38.7 mln vs 30.3 mln
    Avg shares 11,138,503 vs 10,982,699
    Nine months
    Shr profit 40 cts vs loss 10 cts
    Net profit 4,448,000 vs loss 1,123,000
    Rev 108.4 mln vs 75.2 mln
    NOTE: Third qtr net includes gain from discontinued
operations of 3.5 mln dlrs, or 31 cts a share, vs 271,000, or
two cts a share, in fiscal 1985's third qtr. Nine months net
includes gain from discontinued operations of 3.8 mln dlrs, or
34 cts a share, vs 731,000 dlrs, or seven cts a share, in the
first nine months of fiscal 1985.



.I 8785
.C
earn
.W
SHADOWFAX RESOURCES LTD <SHFXF> YEAR LOSS.
    TORONTO, March 11 -
    Shr loss three cts vs profit 14 cts
    Net loss 79,778 vs profit 458,176
    Revs 1,063,623 vs 1,165,186
    Note: 1986 year includes 400,000 dlr writedown on Utah oil
and gas properties


.I 8786
.C
acq
.W
PARALAX <VIDO> AGREES TO ACQUIRE AMERICAN VIDEO.
    NEW YORK, March 11 - Paralax Video Enterprises Inc said it
has agreeed to acquire <American Video Group Inc> in exchange
for 287,700 Paralax restricted common shares and three year
warrants to buy 318,600 restricted shares at six dlrs a share.
    Paralax said holders of some American Video convertible
debentures have elected to exchange them for Paralax restricted
common with a market value of about 380,000 dlrs with that
value to be determined in about 45 days.
    American Video is a closely held company operating video
rental concessions in post and base exchanges at 54 Army, Air
Force, Navy and Coast Guard installations. In its most recent
year, the company had revenues of about 1.5 mln dlrs.
    Paralax said the acquisition is scheduled to close March
16. The company now has about 5.5 mln shares outstanding.


.I 8787
.C
earn
.W
KURZWEIL MUSIC SYSTEMS INC <KURM> 4TH QTR LOSS.
    WALTHAM, Mass., March 11 -
    Shr loss 21 cts vs loss 29 cts
    Net loss 1,246,000 vs loss 1,420,000
    Revs 2,120,000 vs 1,186,000
    Avg shrs 5,853,587 vs 4,880,427
    Year
    Shr loss 85 cts vs loss 1.21 dlrs
    Net loss 4,968,000 vs loss 5,274,000
    Revs 6,536,000 vs 5,056,000
    Avg shrs 5,854,543 vs 4,367,864


.I 8788
.C
earn
.W
J.P. MORGAN AND CO INC <JPM> SETS QUARTERLY.
    NEW YORK, March 11-
    Dividend 34 cts vs 34 cts previously
    Pay April 15
    Record March 23



.I 8792
.C
acq
.W
BAYLY <BAYL> BUYS MAJORITY OF CHUTES.
    DENVER, Colo, March 11 - Bayly Corp said it acquired 55 pct
of Chutes Corp, a maker of denim-oriented sportswear
headquartered in Seattle, Wash.
    Terms were not disclosed.


.I 8794
.C
grain;corn;
.W
CFTC APPROVES MGE CORN SYRUP FUTURES CONTRACT.
    WASHINGTON, March 11 - The Commodity Futures Trading
Commission has approved the Minneapolis Grain Exchange's
application to trade high fructose corn syrup-55, HFCS-55,
futures contracts, the commission said.
    The contract provides for the delivery of 48,000 lbs, plus
or minus two pct, of bulk HFCS-55 meeting specified standards
regarding its physical and chemical properties.
    CFTC said the exchange plans to begin trading a July 1987
HFCS-55 contract on April 6.
    CFTC said the soft drink industry currently buys at least
95 pct of all U.S.-produced HFCS-55, a liquid food and beverage
sweetener produced through the processing of corn starch by
corn refiners.


.I 8797
.C
earn
.W
INTELLIGENT SYSTEMS MLP <INP> MAKES CASH PAYOUT.
    NORCROSS, Ga., March 11 - Intelligent Systems Master
Limited Partnership said it will make a cash distribution of 25
cts a unit in early April to unitholders of record as of March
31.
    The company said continued strength in its results prompted
the move.
    Intelligent Systems added that if current plans to sell
some of its assets, as previously announced, are successful, it
may make further distributions estimated at 15 cts to 25 cts a
unit.
    Earlier, the company reported fiscal third quarter ended
December 31 net income of 2.3 mln dlrs, or 20 cts a share, up
from fiscal 1985 third quarter results of 563,000 dlrs, or five
cts a share.
    In addition, it reported fiscal 1986 nine months' net
income of 4.4 mln dlrs, or 40 cts a share, versus a loss of 1.1
mln dlrs, or 10 cts a share, in fiscal 1985's first three
quarters.


.I 8799
.C
earn
.W
KURZWEIL <KURM> HAS REDUCED WORK FORCE.
    WALTHAM, Mass., March 11 - Kurzweil Music Systems Inc said
it has taken steps this year to reduce costs, including a 10 to
15 pct reduction in its work force.
    A spokesman said the company now has about 70 employees.
    It said other reductions include the use of professional
services, administrative costs, manufacturing overhead and
non-essential development services, adding these cuts are
expected to have a significant impact beginning in the second
quarter.
    Earlier today Kurzweil reported a 1986 loss of 85 cts a
share compared to a 1985 loss of 1.21 dlrs a share.


.I 8801
.C
oilseed
.W
AIDE SAYS FRANCE SUPPORTS OIL AND FATS TAX.
    PARIS, March 11 - France supports the European Commission's
plans for a European Community (EC) fats and oils tax but
objects to some of its oilseeds proposals, Yves Van Haecke, an
aide to French agriculture minister Francois Guillaume said.
    He told a general assembly of France's Oilseeds Federation
(FFCOP) that a suppression of monthly increases of oilseed
support prices, for example, was unacceptable.
    French oilseeds experts added the principle of a single tax
regardless of varying quality was clumsy and capable of
unneccessarily alienating exporters such as the U.S.


.I 8803
.C
earn
.W
HEINZ <HNZ> HAS HIGHER NET DESPITE HIGHER COSTS.
    PITTSBURGH, March 11 - H.J. Heinz Co said net income for
the third quarter rose 18.2 pct despite an 17.2 pct increase in
marketing expenses.
    Meanwhile, the company said it raised its quarterly
dividend to 28 cts a share from 25 cts a share in part on the
expectation that its tax rate under the new tax law will result
in greater cash flow.
    For the third quarter ended January 31, Heinz earned 74.7
mln dlrs, or 55 cts a share, up from earnings of 63.2 mln dlrs,
or 46 cts a share, for the year-ago quarter.
    For the nine months, the company posted a profit of 244.4
mln dlrs, or 1.78 dlrs a share, compared with a profit of 219.7
mln dlrs, or 1.60 dlrs a share, for the year-ago period.
    "Based on the company's performance for the first nine
months, we expect to achieve our 23rd consecutive year of new
growth records," Anthony J.F. O'Reilly, Heinz's newly elected
chairman.


.I 8805
.C
orange
.W
BRAZILIAN FCOJ OFFICIAL WELCOMES U.S. DUTY CUT.
    RIO DE JANEIRO, March 11 - Mario Branco Peres, president of
the Brazilian Association of Citrus Juice Industries
(Abrassuco), welcomed a decision by the U.S. Commerce
Department sharply cutting its duties on imported frozen
concentrated orange juice (FCOJ) from Brazil.
    Speaking by telephone from Sao Paulo, Peres said, "With its
decision, the U.S. government recognised the honesty of
Brazilian exporters, who never have the intention of practising
dumping."
    In a final ruling yesterday, the U.S. government eliminated
the duties shipped by Sucocitrico Cutrale and cut to 1.96 pct
the duty on Citrosuco. Duties of 8.54 pct had been set last
October.
    Peres said Brazil had enough orange juice to meet the needs
of its major clients.
    "We do not have in stock what we would like to have, but we
certainly have enough orange juice available to supply our
buyers," Peres said, declining to estimate the amount of the
current stock. "To keep it a secret is part of our strategy," he
added.
    Peres said the price policy of the orange juice was based
on market conditions.
    "There is nothing better than a free trade policy," he said.
    Cutrale and Citrosuco officials were not immediately
available for comment.


.I 8806
.C
earn
.W
WALL STREET STOCKS/ICH CORP <ICH>.
    NEW YORK, Louisville, KY, March 11 - ICH Corp's stock
continued under pressure because of lower earnings
expectations, Wall Street analysts said.
    The stock was down one today at 17-1/4, and down about four
since Thursday, when ICH announced it would be reporting
lower-than-expected fourth quarter net income.
    The company said it would report full year 1986 net income
of 2.00 dlrs per share compared to 2.32 dlrs per share in 1985.
Analysts said they had estimated 1987 net at 3.00-4.00 dlrs and
were now looking for at 2.50 dlr to 2.80 dlr range.
    ICH officials were unavailable for comment.


.I 8807
.C
earn
.W
INVACARE CORP <IVCR> 4TH QTR NET.
    ELYRIA, Ohio, March 11 -
    Shr profit 26 cts vs profit 19 cts
    Net profit 1,458,000 dlrs vs profit 1,070,000 dlrs
    Rev 30.9 mln dlrs vs 27.5 mln dlrs
    12 mths
    Shr profit 60 cts vs loss 19 cts
    Net profit 3,367,000 dlrs vs loss 1,061,000 dlrs
    Revs 111.5 mln dlrs vs 94.3 mln dlrs


.I 8808
.C
earn
.W
<RENAISSANCE ENERGY LTD> YEAR NET.
    CALGARY, Alberta, March 11 -
    Shr 47 cts vs 31 cts
    Net 4,757,000 vs 2,466,000
    Revs 32.8 mln vs 33.5 mln
    Avg shrs 12,638,000 vs 8,941,000


.I 8810
.C
wheat;grain;
.W
******USDA ACCEPTS OFFERS FOR 550,000 TONNES  OF BONUS WHEAT FOR CHINA.
Blah blah blah.

.I 8811
.C
housing
.W
QUEBEC FEBRUARY HOUSING STARTS FALL.
    MONTREAL, March 11 - Quebec housing starts fell in February
to 2,191, a four pct drop from last year when growth in Quebec
housing starts was among the highest in the Canada, the Canada
Mortgage and Housing Corp said.
    The February rate seasonally adjusted now stands at 40,000,
down from 79,000 in January, the government agency said.


.I 8812
.C
earn
.W
INVACARE <IVCR> EXPECTS HIGHER 1987 SALES.
    ELYRIA, Ohio, March 11 - Invacare Corp chairman, president
and chief executive officer A. Malachi Mixon III said he
expects the home healthcare equipment company to post sales
increases in the 10 to 15 pct range in 1987.
    Mixon said the increases should come from internal growth
as well as potential acquisitions.
    "Invacare is aggressively seeking acquisitions to
complement the company's existing product lines," Mixon said.
    Earlier, the company reported fourth quarter 1986 net of
1.5 mln dlrs, or 26 cts a share, up from 1.1 mln dlrs, or 19
cts a share, in 1985's fourth quarter.
    Invacare also reported 1986 net income of 3.4 mln dlrs, or
60 cts a share, up from a loss of 1.1 mln dlrs, or 19 cts a
share, in 1985.


.I 8813
.C
earn
.W
LAMSON AND SESSIONS CO <LMS> 4TH QTR LOSS.
    NEW YORK, March 11 -
    Oper shr loss 26 cts vs profit five cts
    Oper net loss 1,506,000 vs profit 312,000
    Revs 42 mln vs 27.9 mln
    Year
    Oper shr loss 43 cts vs profit 16 cts
    Oper net loss 2,535,000 vs profit 1,236,000
    Revs 129.9 mln vs 120.3 mln
    NOTE: Excludes discontinued operations loss 1.42 dlrs a
share versus loss nine cts in the quarter, and loss 1.62 dlrs a
share versus loss 12 cts in the year.
    Also excludes extraordinary loss of six cts a share in the
fourth quarter 1985, and gain of 1.81 dlrs a share in full year
1985.
    Also excludes 1986 full year gain of 80 cts per share from
accounting change.


.I 8814
.C
livestock;carcass;
.W
ARGENTINE MEAT EXPORTS LOWER IN 1986.
    BUENOS AIRES, March 11 - Argentine meat exports during
Jan/Dec 1986 totalled 220,911 tonnes, against 223,204 tonnes
shipped in the same 1985 period, the National Meat board said.
    Shipments in tonnes with comparative figures for the 1985
period, in brackets, included: beef 120,184 (137,686), horse
meat 25,651 (33,892) and beef offal 50,100 (47,745).
    Argentina's meat exports totalled 20,481 tonnes in December
1986, against 15,801 tonnes in the same 1985 month.
    Shipments in tonnes, with comparative figures for December
1985, in brackets, included: beef 14,384 (10,339), horse meat
1,609 (1,539) and beef offal 3,388 (3,098), the board said.
    Main destinations for refrigerated beef (bone in
equivalent) were as follows, in tonnes, with comparative
figures for 1985 in brackets:
    E.C. 46,300 (49,700), Israel 16,200 (17,600), Brazil 18,100
(unavailable), Peru 8,100 (2,300), Angola 4,800 (12,100), Chile
3,400 (8,200), Switzerland 3,000 (3,000), Canary Islands 2,400
(3,700), Singapore 1,900 (1,700), Aruba/Curazao 1,600 (1,700).
    Main destinations for canned meat and cooked beef (bone in
equivalent) in tonnes, with figures for 1985 in brackets, were:
United States 88,300 (102,900), E.C. 30,700 (24,100).


.I 8815
.C
trade
.W
SOUTH KOREA TO KEEP TRADE SURPLUS 3-5 YEARS.
    WASHINGTON, March 11 - South Korean Trade Minister Rha
Woong Bae said his nation would maintain a trading surplus for
three to five years as a way to cut its foreign debt.
    He said in an interview with Reuter that after a few years
it was likely South Korea would drop barriers to foreign goods
and move toward a more balanced trade position.
    He said the present trade surplus was vital if his nation
was to reduce its 44.5 billion dlr foreign debt.
    Rha said that 1986 was the first year South Korea had a
trade surplus - 4.5 billion dlrs, against a 1985 deficit of 
900 mln dlrs.
    Rha made his remarks at the end of a two-week trade mission
here during which a team he led agreed to buy U.S. products
valued at 1.8 billion dlrs.
    About 800 mln dlrs of the purchases here were in goods of
the type South Korea normally bought from Japan.
    Rha leaves today for Ottawa for trade talks with Canadian
officials and businessmen.
    Asked if South Korea would retaliate against U.S. goods if
Congress closed U.S. markets to its products, he said "at this
moment, we have no thought of retaliation."
    South Korea is a major exporter to the U.S. of textiles and
apparel and electronic goods, such as television sets, video
cassette records and personal computers.
    Its purchases from the United States include electronic
testing equipment, grains and cotton.


.I 8816
.C
earn
.W
RESTURANT ASSOCIATES INDUSTRIES INC <RAA>4TH QTR.
    NEW YORK, March 11 -
    Shr 26 cts vs 36 cts
    Shr diluted 25 cts vs 36 cts
    Net 1,389,000 vs 1,412,000
    Revs 56.9 mln vs 35.1 mln
    Avg shrs 5,412,000 vs 3,962,000
    Year
    Shr 90 cts vs 75 cts
    Shr diluted 86 cts vs 75 cts
    Net 4,692,000 vs 2,961,000
    Revs 201.4 mln vs 140.0 mln
    Avg shrs 5,234,000 vs 3,954,000
    NOTE: Results for 14 and 53 week periods ended January 3,
1987, vs 13 and 52 week periods ended December 28, 1985
    1985 net in both periods includes gain of 99,000 dlrs from
tax loss carryforward
    Spokeswoman said average shares outstanding on a diluted
basis were not available


.I 8817
.C
wheat;grain;
.W
USDA ACCEPTS BONUS WHEAT OFFERS FOR CHINA.
    WASHINGTON, March 11 - The Commodity Credit Corp (CCC) has
accepted bids for export bonuses to cover sales of 340,000
tonnes of hard red winter wheat and 210,000 tonnes of soft red
winter wheat to China, the U.S. Agriculture Department said.
    The bonuses awarded averaged 36.22 dlrs per tonne, and the
wheat is scheduled for delivery during May-Oct 1987.
    The bonus awards were made to Cargill, Inc (305,000
tonnes), Continental Grain Co (155,000 tonnes), Mitsubishi
International Corp (60,000 tonnes) and Richco Grain Co (30,000
tonnes).
    Bonuses will be paid to the exporters in the form of
commodities from CCC stocks.
    The purchases complete the Export Enhancement Program
initiative for China announced Jan 26.


.I 8818
.C
earn
.W
SOUTHERN NEW ENGLAND TELECOM <SNG> DECLARES DIV.
    NEW HAVEN, Conn., March 11 -
    Qtly div 72 cts vs 72 cts prior
    Pay April 15
    Record March 23
    NOTE: Company's full name is Southern New England
Telecommunications Corp.


.I 8819
.C
acq;crude;
.W
VENEZUELA MOVES CLOSER TO CHAMPLIN PURCHASE.
    Caracas, march 11 - the council of ministers approved
petroleos de venezuela's planned purchase of a half interest in
the champlin petroleum refinery at corpus christi, texas,
government sources said.
    The cabinet authorized energy and mines minister arturo
hernandez grisanti to approve the purchase in the shareholders
assembly of the state oil company petroleos de venezuela
(pdvsa).
    Pdvsa last april 14 signed a letter of intent to buy a half
interest in champlin's corpus christi refinery for an
undisclosed sum.
    Under the terms of the provisional agreement, venezuela
would supply up to 160,000 barrels a day to the plant through a
new company which would be jointly owned by the pdvsa and
champlin, a subsidiary of the union pacific corp <unp>.
    The deal would also allow pdvsa a joint share in champlin's
refinery and distribution network.
    The purhcase is one of a series of overseas joint ventures
by which venezuela has managed to assure markets for some
400,000 barrels of its approximately 1.5 mln bpd exports.
    Hernandez grisanti told reporters after the cabinet meeting
that pdvsa will pay 93 mln dlrs for its half ownership in the
champlin refinery - 33 mln dlrs in cash and 60 mln dlrs crude
oil and products.
    Through the deal, he said, venezuela will be assured the
sale of at least 140,000 bpd of crude and products.
    Hernandez said pdsva has entered similar joint ventures
with veba oel of west germany, nynas petroelum in sweden, and
citgo in the united states.


.I 8821
.C
earn
.W
EMPIRE OF CAROLINA INC <EMP> 4TH QTR NET.
    NEW YORK, March 11 -
    Shr 71 cts vs 15 cts
    Net 4,234,000 dlrs vs 803,000 dlrs
    Revs 15.4 mln dlrs vs 10.3 mln dlrs
    12 mths
    Shr 1.26 dlrs vs 67 cts
    Net 7,299,000 dlrs vs 3,607,000 dlrs
    Revs 52.5 mln dlrs vs 40.7 mln dlrs
    NOTE: Empire's investment in the Deltona Corp is reported
on the equity method beginning the fourth qtr of 1986. Amounts
for 1985 and the first three qtrs of 1986 have been restated to
reflect the retroactive application.
    During 1986, the 17-1/2 pct debentures and 9-7/8 dlrs
preferred stock were redeemed or converted resulting in
6,028,755 common shares outstanding at December 31, 1986 as
compared to 2,408,766 common shares outstanding at December 31,
1985.


.I 8822
.C
earn
.W
ENSECO INC <NCCO> 4TH QTR LOSS.
    CAMBRIDGE, Mass., March 11 -
    Oper shr loss six cts vs profit seven cts
    Oper net loss 481,517 vs profit 487,432
    Revs 7,492,686 vs 5,575,043
    Avg shrs 8.5 mln vs 7.2 mln
    Year
    Oper shr loss six cts vs profit 34 cts
    Oper net loss 465,043 vs profit 2,283,811
    Revs 29.5 mln vs 19.8 mln
    Avg shrs 7.8 mln vs 6.7 mln
    NOTE: Excludes extraordinary credit of four cts a share in
fourth quarter 1986, and 15 cts in year.


.I 8823
.C
acq
.W
CORRECTED - REXNORD <REX> TO SELL RAILWAY UNIT.
    BROOKFIELD, WIS., March 11 - Rexnord Inc said it signed a
definitive agreement to sell its Railway Maintenance Equipment
Co subsidiary to Oak Industries Inc. Terms were withheld.
    Also participating in the agreement was Banner Industries
Inc, which previously agreed to acquire Rexnord.
    Railway Maintenance had 1986 sales of 16 mln dlrs.
    Rexnord said the sale is part of a major program to divest
several of its businesses representing about 200 mln dlrs in
net assets. Still to be divested are the Process Machinery
Division with sales of 137 mln dlrs and Mathews Conveyer Co,
with sales of 83 mln dlrs. -- Corrects mame of purchaser


.I 8825
.C
acq
.W
WALL STREET STOCKS/SUPERMARKETS GENERAL <SGL>.
    NEW YORK, March 11 - Dart Group Corp <DARTA>, which wants
to acquire Supermarkets General Corp for 1.62 billion dlrs, is
not likely to give up without a fight if its target seeks
another buyer, arbitrageurs said.
    Speculation that Dart's offer of 41.75 dlrs per share could
be just the beginning of a bidding contest helped Supermarkets
shares gain one to 42-1/8  on 2.3 mln shares.
    One rumor had Federated Department Stores Inc <FDS> taking
a look at Supermarkets General. "Our policy is that we do not
comment on any rumors or speculation of this nature," a
Federated spokeswoman said.
    An arbitrageur noted that Dart, controlled by chairman
Herbert H. Haft and his son Robert, last year raised its
initial bid for Safeway Stores by approximately 10 pct when
Safeway resisted.
    However, that company was later sold to a buyout group that
topped the Hafts.
    If history repeats itself, the Hafts could raise their bid
to 46 dlrs if they are rebuffed by Supermarkets General, the
arbitrageur said. But another arbitrageur said the Hafts'
present bid seemed "quite fair." He said the offer amounts to
10 times after-tax-cash flow which is "probably fully priced."


.I 8826
.C
wheat;grain;
.W
******U.S. EXPORTERS REPORT 455,000 TONNES  OF WHEAT SOLD TO CHINA FOR 1986/87 AND 1987/88.
Blah blah blah.

.I 8829
.C
acq
.W
AMERICAN MOTORS <AMO> WEIGHS TAKEOVER PROPOSAL.
    SOUTHFIELD, MICH., March 11 - American Motors Corp said its
directors met Wednesday to review the takeover proposal which
the corporation received Monday from Chrysler Corp <C>.
    AMC said its board has retained independent investment and
legal advisers and expects to meet periodically over the next
several weeks on the proposal.


.I 8830
.C
earn
.W
BANGOR HYDRO-ELECTRIC CO <BANG> SETS DIVIDEND.
    BANGOR, Maine, March 11 -
    Qtly div 25 cts vs 25 cts
    Pay April 20
    Record March 31


.I 8831
.C
acq
.W
KANSAS CITY SOUTHERN <KSU> MERGER RESPONSE.
    KANSAS CITY, MO., March 11 - Kansas City Southern
Industries Inc said an attempt by Santa Fe Southern Pacific Co
<SFX> to reopen the proposed merger of the Atchison, Topeka and
Santa Fe Railway Co and the Southern Pacific Transportation Co
offers "nothing truly new."
    In a letter to shippers, Kansas City Chairman Landon
Rowland stated "This proposed merger is plainly
anti-competitive, as found by the ICC and urged by the
Department of Justice. Nothing has changed."
    Landon said Kansas City Southern is continuing its efforts
to acquire the transportation operation of Santa Fe Railway.


.I 8833
.C
acq
.W
COKE AFFILIATE TO SELL DELAURENTIIS <DEG> STAKE.
    WASHINGTON, March 11 - De Laurentiis Entertainment Group
Inc said Embassy Communications, a Californai general
partnership affiliated with Coca-Cola Co <KO>, plans to sell
its 10.1 pct stake in the company.
    In a filing with the Securities and Exchange Commission for
a secondary offering, De Laurentiis said Embassy will offer its
entire stake in the company of 964,936 shares of common stock
in the public sale.
    De Laurentiis said it has 9.6 mln shares outstanding.
    PaineWebber Inc will underwrite the offering.


.I 8835
.C
earn
.W
HERLEY MICROWAVE <HRLY> 2ND QTR JAN 31 NET.
    LANCASTER, Pa., March 11 -
    Shr nine cts vs 17 cts
    Net 275,000 vs 490,000
    Rev 2.4 mln vs four mln
    Six months
    Shr 29 cts vs 31 cts
    Net 885,000 vs 884,000
    Rev 6.1 mln vs 7.1 mln
    NOTE: Company's full name is Herley Microwave Systems Inc.


.I 8839
.C
acq
.W
WILLIAMS COS <WMB> COMPLETES SALE OF UNIT.
    TULSA, Okla., March 11 - Williams Cos said it completed the
sale of its Agrico Chemical Co unit to Freeport-McMoRan
Resource Partners L.P. <FRP> for an initial 250 mln dlrs cash.
    The company said it will also receive an additional 100 to
250 mln dlrs in five years based on the operating performance
of the unit.
    It said the cash proceeds will be used to lower its debt
costs.


.I 8841
.C
sugar
.W
EC COMMISSION REJECTS SUGAR THREATS - SOURCES.
    BRUSSELS, March 11 - The European Community Commission has
told EC member states that it is not prepared to discuss EC
sugar prices while sugar traders threaten to make a huge sale
into intervention stocks to protest against its policies,
Commission sources said.
    "Our position is that we are not willing to discuss the
problems of market prices at a time when traders are making
threats," one source said.
    The sources said the Commission's view was made clear at a
meeting of its sugar management committee today.
    They said French, West German and Dutch officials had
informed the committee that traders in their countries intended
to sell just over 850,000 tonnes of sugar into EC intervention
stocks.
    The Commission riposted by signalling that it would sell
the sugar sold into intervention back onto the EC market by
tender, a move that would push down prices.
    The sources said French traders planned to sell 775,000
tonnes into intervention stocks, West German traders 7,500
tonnes and Dutch traders 2,500.


.I 8843
.C
money-supply
.W
TREASURY BALANCES AT FED FELL ON MARCH 10.
    WASHINGTON, March 11 - Treasury balances at the Federal
Reserve fell on March 10 to 2.842 billion dlrs from 3.073
billion dlrs the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 9.828
billion dlrs from 11.418 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 12.670
billion dlrs on March 10 compared with 14.490 billion dlrs on
March 9.


.I 8844
.C
trade
.W
SOUTH KOREA TO MAINTAIN TRADE SURPLUS 3-5 YEARS.
    By Robert Trautman, Reuters
    WASHINGTON, March 11 - South Korean Trade Minister Rha
Woong Bae said his nation would maintain a trading surplus for
three to five years as a way to cut its foreign debt.
    He said in an interview with Reuters that after a few years
it was likely South Korea would drop barriers to foreign goods
and move toward a more balanced trade position.
    He said the present trade surplus was vital if his nation
was to reduce its 44.5 billion dlr foreign debt.
    Rha said that 1986 was the first year South Korea had a
trade surplus - 4.5 billion dlrs, against a 1985 deficit of 900
mln dlrs.
    Asked if South Korea would drop its trade barriers once its
foreign debt was substantially reduced, he said "yes, I think
so."
    Rha made his remarks at the end of a two-week trade mission
here during which a team he led agreed to buy U.S. products
valued at 1.8 billion dlrs.
    About 800 mln dlrs of the purchases are in goods of the
type South Korea normally bought from Japan.
    Rha was to leave later today for Ottawa for trade talks
with Canadian officials and businessmen.
    He said in the interview the U.S. purchases were to reduce
his country's 7.1 billion dlr surplus with the United States
and also to cut its 5.6 billion dlr shortfall with Japan.
    Rha said it was also due to a shift in exchange rates
between the U.S. dollar and the yen that made it cheaper to buy
U.S. goods than Japanese goods.
    He said South Korea heavily relied on foreign trade and he
hoped the leaders of major trading nations could find a way to
resolve the growing trend toward protectionist legislation.
    Rha said "I hope the leaders can get together to find a
solution by making some mutually satisfactory concessions."
    But he added "the leaders seem hesitant to make concessions
because of domestic political reasons."
    Speaking of his own country, he said "We have made a lot of
concessions already."
    He cited regulations permitting foreign investment in
industrial firms, allowing increased foreign banking activity
and cracking down on piracy of intellectual property by
strengthening protection of copyrights and patents.
    Rha said South Korea had also lowered many of its tariffs.
    Asked if South Korea would retaliate against U.S. goods if
Congress closed U.S. markets to its products, he said "at this
moment, we have no thought of retaliation."
    South Korea is a major exporter to the United States of
textiles and apparel and electronic goods, such as television
sets, video cassette records and personal computers.
    Its puchases from the United States include electronic
testing equipment and grains and cotton.
    The trade mission's purchases here included three Boeing
passenger planes for 400 mln dlrs, four McDonnell Douglas
planes for 300 mln dlrs; and machinery worth 725 mln dlrs.


.I 8846
.C
acq
.W
HONG KONG FIRM UPS CALMAT <CZM> STAKE TO 9.8 PCT.
    WASHINGTON, March 11 - Industrial Equity (Pacific) Ltd, a
Hong Kong investment firm, said it raised its stake in Calmat
Co to 1,480,830 shares, or 9.8 pct of the total outstanding
common stock, from 1,217,230 shares, or 8.0 pct.
    In a filing with the Securities and Exchange Commission,
Industrial Equity, which is principally owned by Brierley
Investments Ltd, a publicly held New Zealand firm, said it
bought 263,600 Calmat common shares between Feb 17 and March 9
for 13.1 mln dlrs.
    It has said it bought the stock for investment purposes,
but may raise its stake to 15 pct.
                    


.I 8847
.C
acq
.W
PARALAX VIDEO <VIDO> TO BUY AMERICAN VIDEO.
    NEW YORK, March 11 - Paralax Video Enterprises Inc said it
signed a definitive agreement to buy <American Video Group Inc>
for stock.
    According to the merger proposal, American Video
shareholders will receive about 287,700 restricted Paralax
shares, and warrants to buy another 318,600 restricted shares
at six dlrs a share. The warrants run for three years.
    In addition, it said holders of American Video convertible
debentures agreed to exchange their holdings for about 380,000
dlrs worth of Paralax stock.
    American Video operates stores in U.S. military bases.


.I 8850
.C
earn
.W
LAMSON/SESSIONS <LMS>DROPS RAIL PARTS OPERATIONS.
    CLEVELAND, March 11 - Lamson and Sessions Co said it has
decided to discontinue operations of Youngstown Steel Door, a
maker of components and equipment for railroad freight cars.
    The company said the unit is to be sold sometime this year,
so was included as discontinued operations in its 1986 results
announced earlier today.
    The company reported a loss from continuing operations of
2.5 mln dlrs for the year, against a 1985 profit of 1.2 mln
dlrs. For discontinued operations, it reported a loss of 9.5
mln dlrs compared to a year earlier loss of 922,000 dlrs.


.I 8852
.C
acq
.W
ROCHESTER TELEPHONE <RTC> TO BUY CANTON PHONE.
    ROCHESTER, N.Y., March 11 - Rochester Telephone Corp said
it agreed to buy <Canton Telephone Co> for undisclosed terms.
    Canton serves customers in northeastern Penn. In 1986, it
had operating revenues of about 1.3 mln dlrs, the company said.


.I 8855
.C
plywood;lumber;
.W
OREGON LUMBER COMPANY TO SELL WOOD TO IRAQ.
     PORTLAND, Oregon, March 11 - A Portland-based wood
products company has signed a 13 mln dlr contract with the
Iraqi government to supply finished softwood lumber to Iraq,
Edward Niedermeyer, president of Niedermeyer-Martin Co said
yesterday.
    Niedermeyer told the House Foreign Affairs sub-committee on
International Economic Policy and Trade in Washington that the
sales agreement contains an option that could make lumber
exported worth more than 20 mln dlrs.
    The delivery of about 8.0 mln dlrs worth of plywood, in
addition to lumber, hinges on whether the U.S. Department of
Agriculture will interpret plywood as an agricultural commodity
under the credit guarantee program, he said.
    Niedermeyer said the government export credit guarantee
program (GSM-102) administered by the USDA was the key to
opening the Iraqi market which up to now had been captured by
Scandinavian lumber producers.
    "This is the first time we have been able to sell wood
products in Iraq, he said. Without the USDA program it would
not have been possible. We hope this will lead to a long term
export market for U.S. lumber products."
    He said the contract calls for supplying 21 mln board feet
to 30 mln board feet of softwood lumber for housing,
construction and furniture manufacturing. He estimated the
profit potential for his company on the sale at five to six
pct.
    Niedermeyer spent two weeks in Baghdad negotiating the sale
late last month and early March. He is a member of the United
States-Iraq Business Forum, a non-profit group designed to
promote commerce with Iraq.
    The forum members include Westinghouse and General
Electric, but Niedermeyer's company is the only wood products
firm on the membership roster.


.I 8857
.C
earn
.W
WALLACE COMPUTER SERVICES INC <WCS> DIVIDEND.
    HILLSIDE, ILL., March 11 -
    Qtly div 15 cts vs 15 cts previously
    Pay June 19
    Record June One


.I 8859
.C
earn
.W
IROQUOIS BRANDS LTD <IBL> 4TH QTR LOSS.
    GREENWICH, CONN., March 11 -
    Oper shr loss 97 cts vs loss 73 cts
    Oper net loss 883,000 vs loss 659,000
    Revs 19.4 mln vs 16.7 mln
    12 mths
    Oper shr loss 2.37 dlrs vs loss 1.97 dlrs
    Oper net loss 2,228,000 vs loss 2,145,000
    Revs 72.4 mln vs 63.8 mln
    NOTE: Excludes gain 3.41 dlrs a share versus gain 41 cts in
the quarter, and gain 5.68 dlrs a share versus gain 1.99 dlrs
in the year from discontinued and disposed operations.


.I 8861
.C
acq
.W
ALABAMA INVESTOR UPS PENOBSCOT SHOE <PSO> STAKE.
    WASHINGTON, March 11 - Donaldson Bramham Lee, an investor
from Birmingham, Alabama, said he raised his stake in Penobscot
Shoe Co to 40,500 shares, or 6.6 pct of the total outstanding
common stock, from 33,500 shares, or 5.5 pct.
    In a filing with the Securities and Exchange Commission,
Lee said he bought 7,000 Penobscot common shares between Feb 12
and March 2 at prices ranging from 13.75 to 16.25 dlrs a share.
    Lee has said he bought the Penobscot stock for investment
purposes only and has no plans to seek control of the company,
although he may buy more stock.


.I 8862
.C
grain;corn;
.W
U.S. CORN DEMAND GROWING IN JAPAN, SOUTH KOREA.
    WASHINGTON, March 11 - The recent purchase of 1.5 mln
tonnes of U.S. corn by Japan and 600,000 tonnes by South Korea
suggests that the two countries' demand for reliable supplies
of corn is increasing, the U.S. Agriculture Department said.
    In its World Production and Trade Report, the department
said that view is reinforced by the expectation of a decline in
exportable supplies of Argentine corn and uncertainty over the
availability of South African and Chinese corn.
    With these corn purchases, Japan is committed to buying 7.7
mln tonnes of U.S. corn in 1986/87 (Sept-Aug), nearly 400,000
tonnes greater than year-ago figures to date.
    South Korea's cumulative commitments amount to 2.5 mln
tonnes, up 1.5 mln compared to last year, it said.


.I 8863
.C
veg-oil;rape-oil;sun-oil;
.W
MEXICO VEG OIL TAX NOT AIMED AT SUNFLOWER--USDA.
    WASHINGTON, March 11 - The Mexican Secretariat of Commerce
has told the U.S. that recent implementation of a 10 pct ad
valorem tariff for fixed vegetable oils, fluid or solid, crude,
refined or purified, was not targeted at sunflower oil, the
U.S. Agriculture Department said.
    In its World Production and Trade Report, the department
said the increase in tariffs on this category which includes
sunflower, corn and rapeseed oils, was a reaction to importers
using basket categories to avoid paying tariffs on specific
high-tariff products.


.I 8864
.C
earn
.W
AERO SERVICES <AEROE> SEES BETTER 1987.
    TETERBORO, N.J., March 11 - Aero Services International Inc
said it expects to achieve improvements in overall operations
in the year ending September 30, 1987.
    Earlier, Aero reported a 1986 year end net loss of 3.0 mln
dlrs compared to a profit of 483,000 dlrs in 1985.
    The company said the loss was attributable to costs
associated with its acquisition costs and operating losses of
nine Beckett Aviation fixed base operations purchased in August
1985 and discontinued weather service and flight simulator
segments.
   


.I 8865
.C
earn
.W
AERO SERVICES INTERNATIONAL INC <AEROE> YEAR.
    TETERBORO, N.J., March 11 -
    Shr loss 63 cts vs profit 10 cts
    Net loss 3.0 mln vs profit 483,000
    Revs 61.9 mln vs 43.7 mln
    NOTE:1986 net loss includes loss of 1.4 mln dlrs or 28 cts
a share from discontinued operations. 1986 revenues include
revenues for the last eight months of Beckett Aviation,
acquired in September of 1985. Year ended September 30, 1986.



.I 8867
.C
earn
.W
VISTA RESOURCES INC <VIST> 4TH QTR NET.
    NEW YORK, March 11 -
    Shr 1.36 dlrs vs one dlr
    Net 1,010,249 vs 750,856
    Revs 15.2 mln vs 11.9 mln
    12 mths
    Shr 3.24 dlrs vs 2.18 dlrs
    Net 2,407,186 vs 1,627,250
    Revs 57 mln vs 53.1 mln


.I 8868
.C
ship;coffee;
.W
BRAZIL COFFEE EXPORTS DISRUPTED BY STRIKE.
    RIO DE JANEIRO, MARCH 11 - An 11-day-old strike by
Brazilian seamen is affecting coffee shipments and could lead
to a short term supply squeeze abroad, exporters said.
    They could not quantify how much coffee has been delayed
but said at least 40 pct of coffee exports are carried by
Brazilian ships and movement of foreign vessels has also been
disrupted by port congestion caused by the strike.
    A series of labor disputes and bad weather has meant
Brazil's coffee exports have been running at an average two
weeks behind schedule since the start of the year, one source
added.
    By the end of February shipments had fallen 800,000 bags
behind registrations, leaving around 2.4 mln bags to be shipped
during March. By March 10 only 230,000 bags had been shipped,
the sources said.
    Given Brazil's port loading capacity of around 100,000 bags
a day, even if normal operations were resumed immediately and
not interrupted by bad weather, some March registered coffee
will inevitably be shipped during April, they added.



.I 8870
.C
alum
.W
ALCOA DECLINES SPECIFIC COMMENT ON OPTIONS TRADE.
    NEW YORK, March 11 - Alcoa officials acknowledged the
possibility that they may have a position in the off-exchange
aluminum options market, but declined specific comment on trade
speculation that the company is holding a large outstanding
position.
    An Alcoa (Aluminum Company of America) source involved in
terminal trading for the company said: "We use all means
available to manage our business, so it's a possibility we're
trading options."
    "We won't go into specifics about what we're doing. But
when you're dealing in un-alloyed ingot, it's a commodity
business where there are a lot of tools available (for hedging)
and Alcoa is using all of those tools," said Al Posti, Alcoa's
manager of corporate news.
    Trade sources have said Alcoa is long call options equal to
30,000 to 50,000 tonnes of aluminum due to mature in April and
May. However, some New York-based aluminium traders said they
believe the size of Alcoa's position has been exaggerated.
    The possibility that Alcoa may be long call options is one
factor indicating that supply tightness may worsen in the
second quarter, traders said.
    "If they decide to exercise their right to buy, it would
mean really squeezing the market," one New York trader said,
noting that aluminum stocks on the London Metal Exchange were
90,500 tonnes at the end of last week.


.I 8871
.C
earn
.W
BRAE CORP <BRAE> 3RD QTR DEC 31 LOSS.
    SAN FRANCISCO, March 11 -
    Shr loss 1.32 dlrs vs profit two cts
    Net loss 5,666,000 vs profit 84,000
    Revs 12.0 mln vs 21.7 mln
    Nine mths
    Shr loss 1.87 dlrs vs loss 71 cts
    Net loss 8,030,000 vs loss 3,062,000
    Revs 40.9 mln vs 53.0 mln
    Note: includes losses from discontinued operations of
190,000 dlrs vs loss 185,000 dlrs in 3rd qtr and 731,000 dlrs
loss vs 815,000 dlrs loss in nine mths.


.I 8872
.C
crude
.W
******MARATHON TO RAISE CRUDE PRICES 50 CTS/BBL TOMORROW WTI  TO 17.50 DLRS.
Blah blah blah.

.I 8873
.C
acq
.W
GENERAL ELECTRIC <GE> TO SELL DATEL UNIT.
    SOMERVILLE, N.J., March 11 - General Electric Co's GE
Semiconductor Business said it agreed to sell its Datel unit to
a group led by the unit's president, Nicolas Tagaris.
    Terms were not disclosed.
    Tagaris founded the company, which produces precision data
acquisition, conversion and control components and subsystems,
in 1970. He sold it to GE in 1979.


.I 8874
.C
acq
.W
TRICO <TRO> SETS DATE FOR ACQUISITION VOTE.
    GARDENA, Calif., March 11 - Trico Industries Inc said it
set March 31 as the date for a special shareholders meeting for
a vote on the proposed acquisition of the company by Paccar Inc
<PCAR>.
    In January the two companies announced an agreement
covering a proposed acquisition by Paccar of Trico's
approximately 8.2 mln shares outstanding for eight dlrs per
share in cash.


.I 8877
.C
acq
.W
******HUGHES TOOL SHAREHOLDERS APPROVE MERGER WITH BAKER INTERNATIONAL.
Blah blah blah.

.I 8881
.C
earn
.W
<CANADIAN GYPSUM CO LTD> YEAR NET.
    TORONTO, March 11 -
    Shr 3.13 dlrs vs 2.02 dlrs
    Net 39.1 mln vs 26.9 mln
    Revs 203.2 mln vs 173.8 mln


.I 8883
.C
acq
.W
CREW UNION SETS PACT WITH PACIFIC SOUTHWEST <PSG>.
    SAN DIEGO, March 11 -  Pacific Southwest Airlines said it
reached an agreement with the Southwest Crew Controllers
Association needed to satisfy conditions of USAir Group's <U>
proposed acquisition of PSA.
    PSA said this is the third of four unions agreement is
needed with for USAir's acquisition to be consummated.
    Under the agreement, PSA crew controllers received
assurances they will be provided with labor protective
provisions and a seniority integration process.


.I 8884
.C
earn
.W
SOUTHERNNET INC <SOUT> 4TH QTR NET.
    ATLANTA, Ga., March 11 -
    Shr 32 cts vs four cts
    Net 3,370,000 vs 353,000
    Revs 27.8 mln vs 20.2 mln
    Year
    Shr 35 cts vs 67 cts
    Net 3,543,000 vs 3,845,000
    Revs 103.6 mln vs 74.8 mln


.I 8886
.C
ship
.W
SENATOR LUGAR CALLS FOR CARGO PREFERENCE REPEAL.
    WASHINGTON, March 11 - The senior Republican on the U.S.
Senate Agriculture Committee, Richard Lugar of Indiana, called
for repeal of the cargo preference law that aids the American
shipping industry but which he said hurts farmers.
    "Cargo preference is a costly special interest operated at
the expense of American farmers and dockworkers," Lugar said in
signing on as a co-sponsor or cargo preference repeal
legislation.
    The law requires shipment of U.S. goods on American ships
rather than foreign vessels which are less costly.


.I 8889
.C
crude
.W
******EIA SAYS DISTILLATE STOCKS OFF 8.8 MLN, GASOLINE OFF 500,000, CRUDE OFF 1.2 MLN.
Blah blah blah.

.I 8890
.C
earn
.W
SYLVAN LEARNING CORP <SLVN> NINE MONTHS DEC 31.
    MONTGOMERY, Ala, March 11 -
    Shr loss 43 cts vs profit eight cts
    Net loss 3.1 mln vs profit 502,896
    Revs 5.6 mln vs 4.2 mln
    NOTE:1986 net includes negative effect of accounting change
of 354,650 or five cts a share.


.I 8892
.C
oilseed;grain;corn;soybean;
.W
BIG U.S. CONSERVATION ENROLLMENT EXPECTED.
    WASHINGTON, March 11 - Enrollment in the U.S. Agriculture
Department's fourth conservation signup is expected to be
announced tomorrow, and USDA officials said the figure may be
higher than total enrollment for the first three signups.
    Enrollment will be in the range of seven to 12 mln acres,
USDA conservation specialists said. Total enrollment so far in
the 10-year conservation program is 8.9 mln acres.
    Producers submitted bids to enter 11 to 12 mln acres into
the program, Milton Hertz, administrator for USDA's
Agricultural Stabilization and Conservation Service said at a
congressional hearing yesterday. Not all the bids will be
accepted, Hertz said, but enrollment is expected to be high.
    As in the first three signups, the Great Plains area is
expected to attract the greatest enrollment.
    "The Great Plains area will be the predominate area which
we'll get signup in," a USDA conservation specialist said.
    Marginal corn acreage will likely be the bulk of the
acreage pulled from that area, he said.
    Fringe soybean acres in the southeast and some bean acreage
in the midwest are also expected to be taken out of production,
but the USDA source said this would be a relatively small
percent of the total.
    A special two dlr bonus to corn producers who enroll part
of their corn base acreage into the program has sparked more
interest in this latest signup, USDA officials said.
    Under the program, USDA pays farmers annual rents to take
land out of production for 10 years. The average rent payment
accepted in the first three signups was 43.50 dlrs per acre.


.I 8893
.C
crude
.W
EIA SAYS DISTILLATE, GAS STOCKS OFF IN WEEK.
    WASHINGTON, March 11 - Distillate fuel stocks held in
primary storage fell by 8.8 mln barrels in the week ended March
six to 119.6 mln barrels, the Energy Information Administration
(EIA) said.
    In its weekly petroleum status report, the Department of
Energy agency said gasoline stocks were off 500,000 barrels in
the week to 251.0 mln barrels and refinery crude oil stocks
fell 1.2 mln barrels to 331.8 mln.
    The EIA said residual fuel stocks fell 1.5 mln barrels to
36.4 mln barrels and crude oil stocks in the Strategic
Petroleum Reserve (SPR) rose 200,000 barrels to 516.7 mln.
    The total of all crude, refined product and SPR stocks fell
10.3 mln barrels to 1,564.8, it said.


.I 8894
.C
oilseed;grain;corn;sunseed;sorghum;
.W
MORE HEAVY RAINS IN ARGENTINE GRAIN AREAS.
    By Manuel Villanueva, Reuters
    BUENOS AIRES, March 11 - Heavy rains fell again in
Argentina's main grain growing areas in the week to yesterday,
trade sources said.
    Rains fell heaviest early in the week, and in particularly
high volume in Buenos Aires province, Cordoba, La Pampa and
Santa Fe provinces.
    Rainfall totalled between 20 and 290 mm in Buenos Aires,
heaviest in western sectors of the province, 20 to 145 mm in La
Pampa, 25 to 120 mm in Cordoba, and 10 to 75 mm in Santa Fe.
Rainfall was lighter in other provinces.
    Rainfall totalled from five to 50 mm in Corrientes, five to
31 mm in San Luis, five to 30 mm in Entre Rios, three to 20 mm
in Misiones, 11 to 17 mm in Formosa and one to eight mm in
Chaco.
    Growers said it was still too early to tell whether the
rains had damaged crops, though they said maize and sunflower
crops may have suffered.
    Harvesting of both those crops and sorghum was paralysed by
the bad weather. For harvesting to resume as normal, the rains
would have to stop long enough for the soil to dry and allow
farm machinery to operate.
    The rains caused flooding in western and northwestern
Buenos Aires, as more than 750 mm have fallen in some areas
there since February 23 while the annual average is 1,200 mm.
    Flooded areas total between 1.2 and 1.5 mln hectares,
Buenos Aires province governor Alejandro Armendariz said after
flying over the flooded area.
    Agriculture Secretary Ernesto Figueras said only 500,000
hectares of the area now flooded had been planted, and that
200,000 to 300,000 hectares could be lost. Growers said large
parts of the flooded areas were not planted because they are
low-lying and flood easily.
    Trade sources said it was certain crops were damaged by the
heavy rains but it was too early to tell the exact extent of
the damage. They said it was likely rain combined with high
winds uprooted many sunflower and maize plants.
    The sunflower harvest moved forward in the centre and south
of Cordoba and Santa Fe and got underway in a few isolated
areas of northern Buenos Aires. Growers have harvested between
15 and 18 pct of total planted area, up from seven to nine pct
a week ago.
    Estimates of the total volume of the sunflower crop were
revised downward in light of the bad weather.
    Estimates for total crop ranged from 2.3 to 2.6 mln tonnes,
down from 2.4 to 2.7 mln tonnes estimated last week and down
34.1 to 41.5 pct from last year's record harvest of 4.1 mln
tonnes.
    Maize harvesting also advanced, reaching between 13 and 15
pct of total planted area compared to seven to nine pct a week
ago. The maize harvest is expected to total between 10 and 10.2
mln tonnes, down from the 10 to 10.4 mln tonnes estimated a
week ago.
    Last year's maize harvest totalled 12.8 mln tonnes,
according to official figures.
    Soybean production estimates were revised downward, to 7.8
to 8.2 mln tonnes compared to estimates of eight to 8.4 mln
tonnes a week ago. Last year's soybean harvest totalled 7.1 mln
tonnes, according to official figures.
    Sorghum harvesting moved slowly forward, reaching between
four and six pct of total planted area, compared to two to four
pct a week ago.
    Sorghum production estimates remained steady at 3.2 to 3.5
mln tonnes, down 16.7 to 22 pct from the 4.1 to 4.2 mln tonnes
produced in the last harvest.


.I 8895
.C
interest
.W
PHILIPPINE DEBT TALKS DELAYED FOR CONSULTATIONS.
    NEW YORK, March 11 - Today's debt rescheduling talks
between the Philippines government and its bank advisory
committee were postponed until Thursday to give the banks more
time to consider Manila's novel proposal for paying part of its
interest bill in notes instead of cash, bankers said.
    The committee banks met briefly earlier today and decided
that they needed more time in particular to consider a news
report which quoted a Reagan Administration official as urging
that the proposal be given serious consideration.
    "The banks felt that this was new information and that
further consultation was called for," one banker said.    
    In a despatch yesterday from Washington, Reuters quoted the
official as saying Manila's plan to pay some interest with
notes that could be converted into equity investments in the
Philippines was fully consistent with the Reagan Administration
strategy for handling developing country debt.
    "The Philippine proposal is very interesting, it's quite
unique and I don't think it's something that should be
categorically rejected out of hand," the official said.
    Because of the key role the U.S. plays in the debt crisis,
foreign banks in particular wanted time to analyze the
significance of the policymaker's comments, bankers said.


.I 8896
.C
acq
.W
******HARPER AND ROW GETS BID FROM HARCOURT BRACE JOVANOVICH FOR 50 DLRS/SHR.
Blah blah blah.

.I 8897
.C
acq
.W
HUGHES <HT> APPROVES MERGER WITH BAKER <BKO>.
    HOUSTON, March 11 - An overwhelming majority of Hughes Tool
Co shareholders approved a merger agreement with Baker
International Corp based on revised terms that allow the
companies additional time to sell a drilling bit business as
required by the U.S. Justice Department.
     Hughes chairman William Kistler said the revised terms of
the proposed consent decree also set a 10 mln dlr cap on how
much funding the newly combined companies will have to spend on
the disputed drilling bit business until it is sold.
    An earlier proposed consent decree did not establish a
funding limit.
    The Baker-Hughes merger, which would would create a 1.2
billion dlr oilfield services company, almost fell through
earlier this month when Hughes balked at terms of a proposed
Justice Department consent decree that would have given the
companies only three months to find a buyer for the Reed
business.
    Baker said today it would withdraw the one billion dlr
lawsuit it had filed to force Hughes to follow through with the
merger.
    Hughes' Kistler, speaking to reporters after 85 pct of
Hughes' shareholders approved the merger, said the revised
terms of the agreement give the companies six months to find a
buyer for the Reed drilling bit business. The previous
agreement had proposed a three-month period.
    Kistler said the the government had also indicated it would
consider granting, if necessary, an additional three-month
extension to complete the sale.
    He said there were "several people looking" at the domestic
drilling bit business.
    The companies, Kistler said, have also decided to
voluntarily sell a Reed plant in Singapore.
    Kistler estimated that the merger, which should be
completed in about two weeks, will result in annual cost
savings of about 50 mln dlrs. He said he expects "substantial
cutbacks" in the 20,000-member workforce at Baker-Hughes Inc,
the name the merged company will take.
    Kistler said the cost savings and greater efficiencies
should put the company on a profitable course. "We think that
in the third or fourth quarter after the merger we should see
something close to breakeven," he said.
    In the fourth quarter of 1986, Hughes earned 31.7 mln dlrs
on sales of 215.7 mln dlrs.
    Baker, in its first fiscal quarter ended December 31, lost
34.2 mln dlrs on revenues of 297.7 mln dlrs.


.I 8898
.C
crude
.W
USX <X> UNIT TO RAISE MOST CRUDE POSTINGS.
    NEW YORK, March 11 - USX's subsidiary, Marathon Petroleum
Co, said it will raise its contract prices for eleven grades of
crude oil 50 cts a barrel, effective tomorrow.
    The increase brings Marathon's posted price for West Texas
Intermediate and West Texas Sour grades to 17.50 dlrs a barrel.
    The Light Louisiana grade was also raised 50 cts to 17.85
dlrs a barrel.


.I 8902
.C
earn
.W
DOLLAR GENERAL CORP <DOLR> 4TH QTR NET.
    SCOTTSVILLE, March 11 -
    Shr 13 cts vs 40 cts
    Net 2,509,000 vs 7,582,000
    Revs 186.2 mln vs 182.1 mln
    Year
    Shr 23 cts vs 95 cts
    Net 4,318,000 vs 17.8 mln
    Revs 564.8 mln vs 584.4 mln


.I 8903
.C
acq
.W
<BROAD> ACQUIRES <VOGT AND CONANT> UNIT.
    RIVER ROUGE, Mich., March 11 - Broad Corp said it acquired
the construction activities of Vogt and Conant Co of Cleveland.
    The combined companies, to be called Broad, Vogt and Conant
INc, will be the largest structural steel erection company in
the U.S. Combined sales of the two operations were more than 40
mln dlrs in 1986.


.I 8905
.C
acq
.W
GOLDMAN SELLS MOST 1ST PENNSYLVANIA <FPA> STOCK.
    WASHINGTON, March 11 - Goldman, Sachs and Co told the
Securities and Exchange Commission it sold nearly its entire
stake in First Pennsylvania Corp of 2,450,598 shares, or 5.2
pct of the total outstanding common stock.
    Goldman Sachs said it has about 17,800 First Pennsylvania
common shares remaining. On February 26, the company redeemed
convertible debentures with common stock, which at once
increased Goldman's stock holding and the total outstanding.
    Goldman Sachs said it originally bought the stake as part
of its arbitrage business. Marine Midland Banks <MM> has an
agreement in principal to acquire First Pennsylvania.


.I 8906
.C
earn
.W
LIONEL CORP <LIO> 4TH QTR JAN 31 OPER NET.
    NEW YORK, March 11 -
    Oper shr 1.05 dlr vs 51 cts
    Oper net 14.1 mln vs 5,669,000
    Revs 163.2 mln vs 133.2 mln
    Avg shrs 13.5 mln vs 11.5 mln
    Year
    Oper shr 65 cts vs 26 cts
    Oper net 8,664,000 vs 1,906,000
    Revs 287.8 mln vs 251 mln
    Avg shrs 13.4 mln vs 8,403,562
    NOTE: Prior year 4th qtr and year oper net excludes 13.1
mln dlrs and 17.4 mln dlrs, respectively, for income from
discontinued operations.
    Prior year 4th qtr and year oper net also excludes 19.2 mln
dlrs and 20.3 mln dlrs, respectively, for operating loss
carryforwards and other reogranization items.
    Prior year 4th qtr and year ended January 25, 1986.


.I 8907
.C
gas;crude;fuel;
.W
RECENT U.S. OIL DEMAND UP 1.9 PCT FROM YEAR AGO.
    WASHINGTON, March 11 - U.S. oil demand as measured by
products supplied rose 1.9 pct in the four weeks ended March
six to 16.39 mln barrels per day from 16.08 mln in the same
period a year ago, the Energy Information Administration (EIA)
said.
    In its weekly petroleum status report, the Energy
Department agency said distillate demand was down 2.2 pct in
the period to 3.33 mln bpd from 3.40 mln a year earlier.
    Gasoline demand averaged 6.75 mln bpd, up 3.3 pct from 6.53
mln last year, while residual fuel demand was 1.40 mln bpd, off
2.7 pct from 1.43 mln, the EIA said.
    Domestic crude oil production was estimated at 8.38 mln
bpd, down 8.5 pct from 9.15 mln a year ago, and gross daily
crude imports (excluding those for the SPR) averaged 3.67 mln
bpd, up 23 pct from 2.97 mln, the EIA said.
    Refinery crude runs in the four weeks were 12.05 mln bpd,
up 1.5 pct from 11.87 mln a year earlier, it said.
    Year-to-date figures will not become available until March
26 when EIA's Petroleum Supply Monthly data for January 1987
becomes available, the agency said.


.I 8908
.C
earn
.W
(MONTREAL CITY, DISTRICT SAVINGS BANK) 1ST QTR.
    MONTREAL, March 11 -
    Shr 33 cts vs 24 cts
    Net 6.2 mln vs 4.9 mln
    Loans not given
    Deposits not given
    Assets 3.8 billion vs not given
    Note: full name Montreal City and District Savings Bank
    Period ended January 31


.I 8909
.C
gold
.W
FRANCO NEVADA SAYS STOCK RISE DUE TO DRILLING.
    Toronto, March 11 - Franco Nevada Mining Corp Ltd said the
gain in its stock price today is related to deep drilling being
conducted by American Barrick Resources Corp at the Goldstrike
claims in the Carlin camp in northern Nevada.
    Franco Nevada stock is up two at seven dlrs per share on
the Toronto Stock Exchange.
    Franco Nevada said American Barrick announced on March nine
that the drilling indicated a number of significant
intersections of sulfide gold mineralization below a depth of
about 1,000 feet.
    One vertical drill hole intersected gold continuously from
1,100 feet to 1,730 feet averaging 0.30 ounces per short ton,
the announcement said.


.I 8911
.C
acq
.W
HARPER <HPR> GETS BID FROM HARCOURT <HBJ>.
    NEW YORK, March 11 - Harper and Row Publishers Inc said it
received an acquisition offer from Harcourt Brace Jovanovich
INc to acquire all of Harper and Row's shares at 50 dlrs a
share in cash.
    Harper said it will consider the proposal, including such
possible concerns as anti-trust and other legal considerations.
    On Monday, Harper and Row received a surprise 34 dlr-a-
share bid from investor Theodore Cross, owner of six pct of the
shares, for the stock he does not own.
     Harcourt made clear in its offer that it will step aside
if Harper's directors and shareholders reject the bid, Harper
said.
    Harper said the board has previously expressed a strong
determination to remain an independent publishing enterprise.
    Harper also said that New World Pictures, a shareholder,
has requested a copy of Harper's shareholder list to be used in
soliciting proxies.
    New World has 30,800 shares of the total 4.4 mln shares.
    Harper and Row's stock closed off 3/4 to 33-1/2 after
rising 9-1/4 points yesterday.
    Shareholders are due to vote April 2 on a shareholders
rights plan designed to thwart hostile takeovers.
    Ivan Obolensky, an analyst with the investment banking for
of Sterling Grace and Co said Harper and Row is one of the few
remaining independent publishers with a "back list" of authors
stretching back 200 years.
    He said as long as the company maintains copyrights with
the estates of deceased authors, it controls all motion picture
and television rights to the stories. And he said new printing
technologies make new editions a profitable business.
    "Harcourt Brace needs a back list of that nature and is
willing to pay up for it," Obolensky said. But he said Harper
and Row "has plenty of beef to warrant a 50 dlr bid.


.I 8912
.C
acq
.W
BUSINESSMAN HAS 8.9 PCT OF DEL E. WEBB <DWP.A>.
    WASHINGTON, March 11 - John Cotton, an Arizona businessman,
told the Securities and Exchange Commission he has acquired the
equivalent of 213,500 shares of Class A common shares in Del E.
Webb Investment Properties, or 8.9 pct of the total.
    Cotton, president of Finalco Group Inc, a Paradise Valley,
Ariz., data processing equipment maker, said he bought the
stake, which includes warrants to buy 186,300 shares, for
266,958 dlrs.
    The warrants are exerciseable at 9.50 dlrs a share, he
said. Cotton said it bought the stock for investment purposes
only.


.I 8913
.C
earn
.W
ASTEC INDUSTRIES INC <ASTE> 4TH QTR DEC 31.
    CHATTANOOGA, TENN, March 11 -
    Shr loss nine cts vs profit 22 cts
    Net loss 278,949 vs profit 346,368
    Revs 11.9 mln vs 10.4 mln
    Year
    Shr profit 49 cts vs profit 49 cts
    Net profit 1.2 mln vs profit 949,626
    Revs 61.7 mln vs 52.7 mln
    NOTE:1985 net includes loss of three cts or 49.1 mln dlrs
in 4th qtr and loss of 13 cts or 258,720 dlrs in year from
discontinued operations.


.I 8918
.C
interest;retail;ipi;
.W
U.S. ECONOMIC DATA KEY TO DEBT FUTURES OUTLOOK.
    By Brad Schade, Reuters
    CHICAGO, March 11 - U.S. economic data this week could be
the key in determining whether U.S. interest rate futures break
out of a 3-1/2 month trading range, financial analysts said.
    Although market expectations are for February U.S. retail
sales Thursday and industrial production Friday to show healthy
gains, figures within or slightly below expectations would be
positive for the market, the analysts said.
    "You have to be impressed with the resiliency of bonds
right now," said Smith Barney Harris Upham analyst Craig
Sloane.
    Treasury bond futures came under pressure today which
traders linked to a persistently firm federal funds rate and a
rise in oil prices. However, when sufficient selling interest
to break below chart support in the June contract failed to
materialize, participants who had sold bond futures early
quickly covered short positions, they said.
    "Everyone is expecting strong numbers, and if they come in
as expected it won't be that bad for the market," Sloane said.
    Sloane said the consensus estimate for the non-auto sector
of retail sales is for a rise of 0.6 to 0.7 pct.
    Dean Witter analyst Karen Gibbs said a retail sales figure
below market forecasts would give a boost to debt futures, and
she put the range for the non-auto sector of retail sales at up
0.8 to 1.2 pct.
    Industrial production and the producer price index Friday
both are expected to show increases of about 0.5 pct, she
added.
    Retail sales "will tell us whether or not we will be able
to fill the gap," Gibbs said, referring to a chart gap in June
bonds between 100-26/32 and 101-3/32 created Friday. June bonds
closed at 100-4/32 today.
    Also key to debt futures direction, in addition to the
federal funds rate, is the direction of crude oil prices, said
Carroll McEntee and McGinley Futures analyst Brian Singer.
    "A higher fed funds rate and firm oil prices precluded the
market from breaking out of the trading range the last time the
market approached the top of the range," Singer said.
    In order for bonds to break above the top of the range,
which is just below 102 in the June contract, "the crude oil
rally needs to run its course and pull back a little bit,"
Singer said. "Fed funds are already easing back down toward the
six pct level."
    The recent surge in oil prices has also been a concern to
Manufacturers Hanover Futures analyst Jim Rozich, but the rally
may be nearing a top around 18.50 dlrs per barrel, he said.
    Rozich said he is looking for the June bond contract to
ease to 99-6/32 and find support.
    "I'm not quite ready to jump on the bullish bandwagon yet.
The jury is still out this week," Rozich said.


.I 8925
.C
earn
.W
BANK OF BRITISH COLUMBIA 1ST QTR JAN 31 NET.
    VANCOUVER, British Columbia, March 11 -
    Oper shr loss two cts vs profit three cts
    Oper net profit 273,000 dlrs vs profit 1,710,000
    YEAR - period ended October 31, 1986
    Oper shr loss 23 cts vs profit 14 cts
    Oper net loss 4,397,000 vs profit 7,527,000
    Assets 2.67 billion vs 3.25 billion
    Note: 1987 1st qtr net excludes extraordinary loss of 2.2
mln dlrs or six cts shr.
    1986 yr net excludes extraordinary loss of 66 mln dlrs or
1.94 dlrs shr involving 22.1 mln dlrs of costs from sale of
bank assets to Hongkong Bank of Canada, eight mln dlrs for
contingent liabilities in respect of litigation and potential
tax reassessment by U.S. govt and 35.9 mln dlrs of deferred tax
debits.
    Most bank assets sold to HongKong Bank of Canada, a unit of
<Hong Kong and Shanghai Banking Corp> in Nov, 1986.
    Shr after preferred divs.


.I 8927
.C
earn
.W
RESTAURANT ASSOCIATES INC <RA> 4TH QTR JAN 3.
    NEW YORK, March 11 -
    Shr 25 cts vs 36 cts
    Net 1.4 mln vs 1.4 mln
    Revs 56.9 mln vs 35.1 mln
    Year
    Shr 86 cts vs 75 cts
    Net 4.7 mln vs 3.0 mln
    REvs 201.4 mln vs 140.0 mln
    NOTE:1985 4th qtr includes 99,000 loss from carryforward.
Shares restated to give effect to 1.4 to one stock split in the
form a 40 pct class A dividend in August 1985.


.I 8928
.C
earn
.W
MICHIGAN GENERAL CORP <MGL> 4TH QTR.
    SADDLE BROOK, N.J., March 11 -
    Shr loss 1.02 dlrs vs 1.01 dlr
    Net loss 18.1 mln vs 11.4 mln
    Revs 96.0 mln vs 90.3 mln
    Year
    Shr loss 2.65 dlrs vs loss 3.06 dlrs
    Net loss 39.3 mln vs 34.6 mln
    Revs 386.0 mln vs 373.0 mln
    NOTE:1986 4th qtr, year loss includes 14.4 mln dlrs, 4.6
mln dlrs respectively from discontinued. 1985 4th qtr and year
include loss of 13.1 mln, 1.9 mln dlr respectively.


.I 8929
.C
iron-steel;crude;nat-gas;
.W
USX <X> PROVED OIL, GAS RESERVES FALL IN 1986.
    NEW YORK, March 11 - USX Corp said proved reserves of oil
and natural gas liquids fell 28 pct to 802.8 mln barrels at the
end of 1986 from 1.12 billion barrels at year-end 1985.
    The figures, in USX's just-released 1986 annual report,
indicate much of the drop resulted from the exclusion of 293.7
mln barrels of Libyan reserves, after the U.S. government last
June directed U.S. oil companies to end Libyan operations.
    USX, which owns Marathon Oil Co and Texas Oil and Gas Corp,
had 60 pct of its 1986 sales of 14.94 billion dlrs from its oil
and gas operations.
    About 24 pct of total sales came from USX's USS steel unit
and 16 pct from diversified businesses, which include oilfield
services, raw materials, minerals, chemicals and real estate.
    According to the report, domestic liquids reserves fell
slightly to 628.5 mln barrels from 628.9 mln and foreign
reserves fell to 174.3 mln from 486.4 mln barrels. The large
drop in foreign reserves was in the Middle East and Africa,
where they fell to about 9.3 mln barrels from 316.7 mln,
reflecting the exclusion of Libya.
    Total natural gas reserves fell to 4.82 trillion cubic feet
at year-end 1986 from 5.18 trillion at the end of 1985.
    Again, most of the drop came from the Middle East and
Africa, where reserves fell to zero from 71.9 billion cubic
feet, excluding Libyan reserves.
    U.S. natural gas reserves fell to 3.44 trillion cubic feet
from 3.65 trillion and foreign reserves fell to 1.38 trillion
from 1.53 trillion.
    In other areas, USX said total capital spending fell to 962
mln dlrs in 1986 from 1.78 billion dlrs in 1985. The 1986
audited figure is eight mln dlrs higher than the unaudited
figure the company reported on Jan 27.
    USX also said it expects to record a gain of 150 mln dlrs
in 1988, representing 50 pct of previously existing investment
tax credits allowable under the new tax law. The loss of the
other half of the credits was reflected in the fourth quarter.
    In a discussion of steel results, USX said plants that were
shut down last month and some previously idled plants may be
permanently closed. USX took a fourth quarter charge of 1.03
billion dlrs to restructure its steel operations. The charge
included the "indefinite idling" last month of four plants in
Utah, Pennsylvania and Texas.
    Other plants or parts of plants in Pennsylvania, Indiana,
Alabama, Ohio and Chicago had been previously idled.
    "These operations are not permanently shut down. Improved
market conditions for the products from these plants may make
it feasible to reopen some of them," USX said in the report.
    "On the other hand, a lack of any future market improvement
may necessitate their permanent closing," it added.


.I 8932
.C
earn
.W
BANK OF B.C. REVISES SHARE PAYOUT ESTIMATE.
    VANCOUVER, British Columbia, March 11 - Bank of British
Columbia said it revised its estimate of shareholder
distributions from last November's sale of most of the bank's
assets to HongKong Bank of Canada to between 65 cts and 1.15
dlrs a share from 55 cts to 1.20 dlrs a share.
    The bank said the estimate could rise to between 1.30 dlrs
and 1.80 dlrs a share if the full pension surplus is obtained.
It said it did not know when distributions would be made.
    It earlier reported that operating profit for first quarter
ended January 31 fell to 273,000 dlrs from 1.7 mln dlrs the
previous year.
    For full-year 1986 ended October 31, the bank posted an
operating loss of 4.4 mln dlrs against year-earlier profit of
7.5 mln dlrs. The bank also posted a 66 mln dlr extraordinary
loss in fiscal 1986.
    Bank of British Columbia sold most of its assets last
November to HongKong Bank Canada, a unit of <HongKong and
Shanghai Banking Corp>, of Hong Kong, for 63.5 mln dlrs.
    It said efforts to wind up the bank's affairs were
proceeding as quickly as possible.
    The bank said it expected to report positive earnings in
future periods, barring unforeseen circumstances.
    Loan losses, which the bank previously said figured in its
move to sell off most of its assets, rose to 105.7 mln dlrs in
fiscal 1986 from year-earlier 36.1 mln dlrs. The bank said 31.1
mln dlrs of the 1986 total represented downward adjustments to
its portfolio of syndicated sovereign risk loans as required
under the sale to HongKong Bank.
    Since November 27, the bank has confined activities to the
winding up of affairs, Bank of British Columbia said.


.I 8934
.C
earn
.W
<KIENA GOLD MINES LTD> 4TH QTR NET.
    TORONTO, March 11 -
    Shr 17 cts vs 16 cts
    Net 1,019,000 vs 985,000
    Revs 7,997,000 vs 7,492,000
    YEAR
    Shr 1.18 dlrs vs 64 cts
    Net 6,959,000 vs 3,778,000
    Revs 36.5 mln vs 29.8 mln


.I 8935
.C
livestock;carcass;
.W
ARGENTINE MEAT EXPORTS HIGHER IN JAN/FEB 1987.
    BUENOS AIRES, March 11 - Argentine meat exports during
Jan/Feb 1987 totalled 39,714 tonnes, against 36,594 tonnes
shipped in the same 1986 period, National Meat board said.
    Shipments in tonnes with comparative figures for the 1986
period, in brackets, included: beef 26,945 (20,096), horse meat
3,257 (4,211) and beef offal 7,660 (10,502).
    Argentine's meat exports totalled 20,243 tonnes in February
1987, against 19,217 tonnes shipped in the same 1986 month.
    Shipments in tonnes, with comparative figures for February
1986, in brackets, included: beef 13,272 (11,464), horse meat
1,543 (2,083) and beef offal 4,476 (4,672), the board added.
    Main destinations for refrigerated beef (bone in
equivalent) were as follows, in tonnes, with comparative
figures for 1986 in brackets -
    EC 5,500 (7,900), Brazil 5,200 (unavailable), Israel 3,700
(3,000), Peru 2,500 (800), Singapore 500 (300), Switzerland 500
(400), Canary Islands 500 (300), Malta 500 (700), Aruba/Curazao
200 (300), Chile 100 (600).
    Main destinations for canned meat and cooked beef (bone in
equivalent), in tonnes with comparative figures for Jan/Feb
1986, in brackets, were -
    United States 11,200 (13,400), EC 4,700 (5,100).


.I 8936
.C
earn
.W
KIENA PLANS TWO-FOR-ONE STOCK SPLIT.
    TORONTO, March 11 - <Kiena Gold Mines Ltd> said it planned
a two-for-one common stock split, pending shareholder approval
on April 7.
    It said approval would require 66-2/3 pct of votes cast.
Kiena said 57 pct-owner Campbell Red Lake Mines Ltd <CRK> was
expected to vote in favor of the split.


.I 8938
.C
earn
.W
ROWE FURNITURE CORP <ROWE> SETS QTLY DIVIDEND.
    SALEM, Va., March 11 - 
    Qtly div four cts vs four cts prior
    Pay April 15
    Record March 20


.I 8939
.C
trade
.W
U.S. HOUSE PANEL TAKES FIRST TRADE BILL VOTES.
    By Jacqueline Frank
    WASHINGTON, March 11 - House trade lawmakers took their
first votes on measures designed to toughen U.S. trade laws but
held over until tomorrow the most difficult votes on
controversial plans to protect American industries.
    Meeting in closed session, the House Ways and Means Trade
Subcommittee failed to resolve one of the most sensitive issues
in the bill--whether they will force major foreign trading
partners to severely cut their trade surpluses with the United
States.
    The subcommittee is considering a toned-down version of
Democratic-sponsored trade legislation that aims to open
foreign markets but which drops last year's effort to force
President Reagan to retaliate with quotas or tariffs.
    Congressional aides who asked not to be identified said the
lawmakers intend to wrap up their proposals tomorrow and will
consider a proposal to mandate retaliation without setting
specific trade penalties.
    The legislation faces another hurdle in the full Ways and
Means Committee next week before the full House votes on it.
    Rep. Richard Gephardt, a Missouri Democrat who is seeking
his party's 1988 presidential nomination, said he may offer an
amendment to call for reductions in the trade surpluses of
those countries with barriers to imports of U.S. goods.
    This would be a moderated version of his earlier plan to
force a mandatory ten per cent annual cut in the trade surplus
with the United States by Japan, South Korea, Taiwan, West
Germany and other countries with the largest trade imbalances.
    "My criteria for a good amendment sets a standard for
getting the trade deficit down," he told reporters.
    The trade law changes are to become part of a major
congressional and administration effort to turn around the
record U.S. trade deficit of 169 billion dlrs last year by
opening up foreign markets and making U.S. products more
competitive.
    House Speaker James Wright, a Texas Democrat, said again
today he expects the full House will approve the trade bill by
May and that Reagan will accept the final congressional bill.
    "I expect whatever is reported (by the Ways and Means
Committee) will pass. We will have a good bill and an effective
bill," he told reporters.
    The comprehensive trade bill will include work by other
committees to ease export controls on high technology, to aid
U.S. workers displaced by foreign competition, to stimulate
research and development, to remove foreign trade barriers and
to improve education and worker training.
    The lawmakers agreed that for the first time a U.S.
industry could charge foreign producers with unfair competition
if they deny basic worker rights such as collective bargaining,
safety rules and payment of a minimum wage appropriate to the
country's economic development.
    They transferred to U.S. Trade Representative Clayton
Yeutter the powers now held by Reagan to decide whether to
retaliate against foreign violations of fair trade rules and
whether an injured industry deserves import relief.
    They agreed to make it easier for a company to get
temporary relief from import competition but agreed the
industry should provide a plan to become competitive.
    The administration has not announced its support but
Yeutter said yesterday, "I am cautiously optimistic," that the
Democratic-led House will come up with an acceptable bill.


.I 8940
.C
trade
.W
SOVIET MINISTER SAYS TRADE BOOST UP TO FRENCH.
    PARIS, March 11 - Soviet first deputy prime minister
Vsevolod Murakhovsky said at the end of a brief visit here his
country wanted to boost joint business with France, but that a
reduction of France's trade deficit with the Soviet Union
depended on the French.
    Murakhovsky, who is also chairman of the State
Agro-Industrial Committee (GOSAGROPROM), told a news conference
he had discussed a variety of possible deals with French
companies Rhone-Poulenc, Pechiney and Imec.
    Declining to put figures on possible contracts he said he
had discussed plant protection and the processing of highly
sulphuric gas with Rhone-Poulenc, packaging technology for
agricultural products with Pechiney, and fruit and vegetable
juice processing with Imec.
    An official for Pechiney said an agreement of intent on
packaging could be signed soon, but could not give any other
details. The other two companies were not immediately available
for comment.
    Asked whether he foresaw a reduction this year of France's
trade shortfall, at 7.6 billion francs in the first 11 months
of 1986 against 5.1 billion for the whole of 1985, Murakhovsky
told Reuters: "It all depends on France."
    At a meeting in Paris last January French and Soviet
foreign trade ministers said they were committed to increased
efforts to reduce the deficit. Estimates at the time showed a
French 190 mln franc surplus for December 1986.
    Murakhovsky said the Soviet Union was prepared to talk with
anybody with "interesting" proposals offering latest technology
and assuring "a mutual advantage."
    He said the Soviet Union had many tasks ahead of it and
would deal rapidly with proposals it considered interesting.
    He encouraged companies to take advantage of new laws
guaranteeing "the interests of foreign partners" in joint
ventures.
    But he said no agreements had yet been finalised under the
new joint venture laws.
    He said concrete deals had not yet been finalised as a
result of a one billion dollar accord signed in Moscow last
month with French businessman Jean-Baptiste Doumeng.
    He said Doumeng's Interagra company was preparing proposals
for further examination by the Soviet Union. Doumeng last month
said the agreement was to exchange one billion dollars worth of
goods.
    Murakhovsky said the agreement was one of intent, and
designed primarily to renew and increase the Soviet Union's
food production capacity.


.I 8941
.C
crude
.W
VENEZUELA TO LEND OIL TO ECUADOR FOR EXPORT.
    Caracas, march 11 - venezuela will supply ecuador with an
as yet undetermined amount of crude oil to help it meet export
commitments, seriously affected by last week's earthquake,
energy and mines minister arturo hernandez grisanti said.
    He gave few details about the deal, but said a crude oil
loan agreement will be made between state oil companies
petroleos de venezuela (pdvsa) and ecuador's cepe.
    Ecuador was forced to suspend oil exports for an expected
four months after an earthquake damaged a pipeline. Oil
accounts for 60 per cent of its export income.
     Hernandez was speaking to reporters at miraflores palace
on the results of talks with ecuador's deputy energy minister
fernando santos alvite, who arrived here last night.
    "the volume lent to ecuador would be discounted from its
opec quota and would not affect venezuela's," he said. "we would
from august on produce our own quota and sell the additional
amounts that ecuador would be repaying us," he said.
    He did not elaborate on the quota arrangements but did say
ecuador would notify opec by telex that venezuela would be
lending it a certain amount over so many days.
    Venezuela's opec output quota is currently 1.495 million
barrels a day, and ecuador's has been set at 210,000 bpd.


.I 8942
.C
earn
.W
EAGLE CLOTHES INC <EGL> 2nD QTR JAN 31.
    NEW YORK, March 11 -
    Shr profit 17 cts vs profit 14 cts
    Net profit 1.3 mln vs profit 901,000
    Revs 36.9 mln vs 36.2 mln
    Six months
    Shr profit 18 cts vs loss 11 cts
    Net profit 1.4 mln vs loss 716,000
    Revs 63.6 mln vs 57.7 mln
    NOTE:1986 six months includes increase in provision for
doubtful accounts to 1.5 mln dlrs. 1986 shares give effect to
issuance of 1.5 mln shares in exchange for outstanding Series 1
preferred shares.


.I 8944
.C
trade
.W
BRITAIN CALLS ON JAPAN TO INCREASE IMPORTS.
    LONDON, March 11 - Britain today called on Japan to
increase foreign imports or risk the rise of protectionism and
the harm it would bring to it and other trading nations.
    British Trade and Industry Secretary Paul Channon said
Japan must heed a report issued by a Japanese government
advisory body in December calling for faster domestic demand to
help cut its trade surplus and restructure its economy.
    "I recognise that the strong yen has brought problems to
Japan's domestic economy," he told a group of Japanese
businessmen in London.
    "But these short term difficulties should not be allowed to
deflect Japan from the fundamental reforms necessary," he said.
    "It is not just a domestic issue for Japan. If import
propensity does not expand very soon there is a real risk from
protectionist lobbies, particularly in the U.S. With whom Japan
has so massive a surplus," he said.
    "They may well succeed in securing action by governments
which would be highly injurious to trading nations like Japan
and the U.K."
    Channon said there had been substantial growth in the
volume of trade between Japan and Britain, amounting to 6.2
billion sterling (9.8 billion dlrs) last year.
    But he added: "Regrettably too much of it was in one
direction, with the Japanese selling us 3.7 billion sterling
(5.8 billion dlrs) more than we sold them."


.I 8945
.C
acq
.W
******TAFT BROADCASTING REJECTS 145 DLR PER SHARE BUYOUT OFFER FROM THETA CORP.
Blah blah blah.

.I 8946
.C
acq
.W
TAFT <TFB> REJECTS 145 DLR/SHR OFFER.
    Cincinnati, March 11 - Taft Braodacasting Co said its board
of directors unanimously decided not to accept the pending
proposal of Theta Corp, an investor group led by Dudley Taft.
    The decision was based on, among other things, the advise
of its financial advisors, goldman sachs and co, that the offer
of 145 dlrs per share was inadequate.
    Taft said the board concluded that the offer failed to
recognize fully the future propsects of the company and
directed management to explore alternatives including possible
financial restructuring.



.I 8948
.C
veg-oil
.W
BRITISH MINISTER CRITICISES PROPOSED EC OILS TAX.
    LONDON, March 11 - A British minister said that a proposed
European Community tax on vegetable oils and fats would raise
the price of fish and chips and he pledged the government would
fight against it.
    Lord Belstead, a junior agriculture minister, told the
House of Lords the tax would raise the price of raw materials
used in many processed foods by about 100 pct.
    He said revenue should not be raised by taxing the consumer
and called the proposal "repugnant."


.I 8949
.C
jobs
.W
AUSTRALIAN UNEMPLOYMENT EASES IN FEBRUARY.
    CANBERRA, March 12 - Australia's seasonally-adjusted
unemployment rate eased to 8.2 pct of the estimated workforce
in February from 8.3 pct in January, compared with 7.9 pct a
year earlier, the Statistics Bureau said.
    The number of unemployed declined to 632,100 from 638,300
in January, against 594,500 in February 1986, it said.
    But unadjusted, the number of jobless rose to 699,800 or
9.1 pct of the workforce from 671,400 or 8.9 pct in January and
658,500 or 8.7 pct a year earlier.


.I 8951
.C
money-fx
.W
TREASURY SECRETARY BAKER DECLINES COMMENT ON G-6.
    NEW YORK, March 11 - U.S. Treasury Secretary James Baker
declined comment on the February 22 Paris accord between the
six major industrial nations under which they agreed to foster
exchange rate stability.
    Asked by reporters after a speech before the National
Fitness Foundation banquet what, if any, currency intervention
levels had been set in Paris, Baker replied: "We never talk
about intervention."
    Baker also declined to comment on his views about the
foreign exchange markets' reaction to the accord.


.I 8952
.C
crude
.W
ECUADOR TO ASK OPEC TO RAISE EXPORT QUOTA.
    CARACAS, March 11 - Ecuador will ask OPEC to raise its oil
export quota by 100,000 barrels per day to 310,000 to
compensate for lost output due to last week's earthquake,
deputy Energy Minister Fernando Santos Alvite said.
    Santos Alvite, who arrived in Caracas last night to discuss
an aid plan for Ecuador, did not say when the Organisation of
Petroleum Exporting Countries (OPEC) would be approached.
    The additional output would be related to plans now under
discussion for Venezuela and Mexico to lend Ecuador crude while
it repairs a pipeline damaged by the quake.
    Earlier, Venezuelan Energy and Mines Minister Aturo
Hernandez Grisanti said his country would supply an unspecified
part of Ecuador's export commitments.
    But Santos Alvite told reporters he hoped a first cargo of
300,000 barrels could leave Maracaibo this weekend to supply
refineries near Guayaquil. He added Ecuador also wanted to make
up for 50,000 bpd it shipped to Caribbean destinations. Mexico
might supply Ecuador's South Korean market.
    Ecuador may be unable to export oil for up to five months
due to extensive damage to a 25 mile stretch of pipeline
linking jungle oilfields to the Pacific port of Balao.


.I 8953
.C
oilseed;rapeseed;
.W
CHINA'S RAPESEED CROP DAMAGED BY STORMS.
    PEKING, March 12 - The yield on 46,000 hectares (ha) of
rapeseed in central China will be cut by up to 70 pct by
hailstorms and tornadoes that swept across nearly 100,000 ha of
crops on March 6, the New China News Agency said today.
    The storm, which lashed the Huai and Yangtze rivers and
eastern Anhui province, left two people dead and 800 others
injured. Some 800 houses were flattened and 19 boats sunk, it
said.
    The Anhui provincial government has sent emergency relief
to the 19 counties affected, the news agency said.


.I 8954
.C
crude
.W
CHINA CLOSES SECOND ROUND OF OFFSHORE OIL BIDS.
    PEKING, March 12 - China has closed the second round of
bidding by foreign firms for offshore oil exploration rights,
the China Daily has reported.
    It quoted a spokesman for the China National Offshore Oil
Corp (CNOOC) as saying China signed eight contracts with 15
foreign firms for blocks in the Pearl River mouth and south
Yellow Sea covering a total area of 44,913 sq km.
    Second round bidding began at the end of 1984 and only one
well has so far produced results -- Lufeng 13-1-1, 250 km
south-east of Shenzhen, with an output of 6,770 barrels a day.
The well was drilled by a group of Japanese companies.
    The spokesman added CNOOC was ready to enter into contracts
for offshore blocks before third round bidding began. He did
not say when this would be, but added the contracts would not
be bound by restrictions imposed during the second round.
    China has signed 36 oil contracts and agreements with 37
companies from 10 countries since 1979, when offshore
exploration was open to foreigners. Eleven contracts were
terminated after no oil was discovered.
    Foreign firms have invested 2.1 billion dlrs on offshore
China since 1979.


.I 8956
.C
acq
.W
AMC IMPOSES HIRING FREEZE DUE TO TAKEOVER BID.
    DETROIT, March 11 - American Motors Corp <AMO> management
has ordered a hiring freeze in view of Chrysler Corp's <C> 1.5
billion dlr takeover bid, a spokesman for AMC said.
    Analysts said the merger is virtually certain to go ahead.
    American Motors directors met for five hours Wednesday to
review the takeover proposal. "The board ... Expects to be
meeting periodically over the next several weeks on the
Chrysler proposal," AMC said in its first formal statement since
it acknowledged the Chrysler proposal on Monday.
    Chrysler, the number three U.S. Automaker, has said the
merger is motivated principally by its desire to acquire AMC's
profitable Jeep business and dealers, as well as a new modern
car assembly plant in Bramalea, Ontario.
    That means a guaranteed future for much of AMC, but it
leaves in question the fate of many of its 19,000-plus
employees, according to industry analysts. AMC's Toledo, Ohio
Jeep plant has 1,850 hourly workers on indefinite layoff while
its Kenosha, Wisconsin, car plant has another 2,250 on layoff.


.I 8958
.C
bop
.W
FOREIGN INVESTMENT IN AUSTRALIA JUMPS IN LAST QTR.
    CANBERRA, March 12 - The net inflow of foreign investment
into Australia jumped to 7.3 billion dlrs in the fourth quarter
of 1986 from 4.32 billion in the third quarter and 4.55 billion
a year earlier, the Statistics Bureau said.
    The Bureau attributed the increase to a turnaround of 2.08
billion dlrs in official sector transactions and a 1.09 billion
turnaround in direct investment.
    The turnaround in official transactions to a 1.52 billion
inflow from a 555 mln outflow in the third quarter, against a
520 mln inflow a year earlier, was largely on account of
government foreign currency borrowings, it said.
    Direct investment recorded a turnaround to a 1.04 billion
dlr inflow in the fourth quarter from a 57 mln withdrawal in
the third quarter, against a 546 mln inflow in the fourth
quarter of 1985, the Bureau said.
    It said the major part of the turnaround reflected an
injection of funds, estimated at around 700 mln dlrs,
associated with the previously reported restructuring of the
Australian operations of General Motors Corp <GM>.
    GM used the funds to pay out or take over certain
Australian liabilities of its local unit <General
Motors-Holden's Ltd>, it said.
    However, net borrowings remained the major part of total
inflow, accounting for 6.16 billion dlrs in the fourth quarter
against 3.88 billion in the third quarter and 4.03 billion a
year earlier, the Bureau said.
    Net official borrowings comprised 1.52 billion dlrs against
a net outflow of 548 mln in the third quarter and a 516 mln
inflow a year earlier.
    Total private and semi-public authority net borrowings rose
to 4.64 billion dlrs from 4.42 billion in the third quarter and
3.51 billion a year earlier.


.I 8960
.C
grain;corn;
.W
TAIWAN'S FIRST QUARTER MAIZE IMPORTS SEEN RISING.
    TAIPEI, March 12 - Taiwan's maize import commitments are
expected to rise to 970,000 tonnes in the first four months of
1987 from 870,000 tonnes a year earlier, a spokesman for the
Joint Committee of Maize Importers told Reuters.
    He said more than 75 pct of the imports come from the U.S.
And the rest from South Africa.
    The maize import target for calendar 1987 is set at well
over 3.4 mln tonnes compared with an actual 3.07 mln in 1985,
he added.


.I 8961
.C
trade
.W
TAIWAN FURTHER RELAXES FOREIGN GOODS IMPORT CURBS.
    TAIPEI, March 12 - Taiwan said it would soon relax import
controls on some 400 foreign items, including stationery and
books, in a further effort to allow trading partners,
especially the U.S., Greater access to its markets.
    Taiwan announced the easing of import curbs on some 600
farm and industrial products last month, a Council for Economic
Planning and Development spokesman told Reuters.
    He said the new move was intended to balance trade between
Taiwan and its trading partners. The island's trade surplus
reached a record 15.6 billion U.S. Dlrs last year, up from
10.62 billion in 1985.
    In January, Taiwan cut import tariffs on some 1,700 foreign
products and allowed imports of U.S. Wine, beer and cigarettes.
    "We hope the measures will help reduce our trade surplus
this year, especially with that of the U.S.," the spokesman
said.
    Washington is pressing Taiwan to open its markets wider as
a way of cutting its trade deficit with the island, which rose
to 2.35 billion U.S. Dlrs in the first two months of 1987 from
1.87 billion in the year-earlier period.


.I 8962
.C
ship;iron-steel;
.W
ECONOMIC SPOTLIGHT - MITSUBISHI HEAVY FIGHTS BACK.
    By Fumiko Fujisaki, Reuters
    TOKYO, March 12 - International efforts to redirect Japan's
export-driven economy toward domestic consumption face heavy
going if the country's largest defence contractor and world's
biggest shipbuilder is anything to go by.
    Mitsubishi Heavy Industries Ltd <MITH.T> (MHI), which began
making ships and iron goods for Japan's military rulers 130
years ago, is responding to the strong yen by redoubling its
efforts to maintain its share of export markets.
    "If we sell the best quality and the cheapest products,
everyone will buy them," MHI president Yotaro Iida said.
    Although two of MHI's main businesses, shipbuilding and
power plant construction, have been hit hard by the yen's 40
pct rise against the dollar, the company has no plans to
abandon them, Iida told Reuters in an interview.
    Its other big activity, aircraft component manufacture, has
performed so well that MHI now accounts for half of the money
Tokyo spends on defence procurement each year.
    "We have made the utmost efforts among the world's
manufacturers to improve productivity," he said. "You may be
surprised if you come to see our plants. The outside is old but
the inside is ultra-modern, with robots and computers."
    Securities analysts at major securities houses agreed that
MHI has pared costs more quickly than its competitors. The
company has slashed its workforce to 47,000 from 86,000 in
1976.
    Despite its cost-cutting, MHI expects profits to drop 40
pct to 30 billion yen in the current fiscal year ending March
31, from 1985/86's record 50.14 billion.
    And that includes gains from the sale of MHI's stake in
Mitsubishi Motors Corp <MIMT.T> for 49 billion yen.
    Iida is optimistic about the future, however. He said a
resurgence of demand from the Middle East following the recent
recovery in oil prices coupled with persistent demand for power
plants in developing countries will help MHI restore its
exports-to-sales ratio to the past decade's average of 30 pct.
    MHI's exports-to-sales ratio fell to 25.9 pct in the
half-year ended last September, from 35 to 36 pct five years
ago.
    China is the most promising market, although MHI also
considers other non-oil-producing developing countries as major
customers.
    "Our customers are all seen as being in trouble due to a
lack of foreign currency," Iida said. But he added that he felt
MHI could sell to those markets with Japanese government
financial support.
    It can also finance the plants itself and recover its
investment through product sales, a strategy Iida said could
prove popular in the future.
    In shipping, MHI is fighting back against low-priced South
Korean competition by building more technologically advanced
carriers to carry liquefied natural gas and other products
difficult to transport.
    Shipbuilders Association officials told Reuters MHI is the
world's largest shipbuilder in terms of orders and capacity.
    Domestically, MHI is involved in 12 national projects,
including development of nuclear fusion reactors and launch
vehicles for man-made satellites.
    It has been the biggest contractor for the Japan Defence
Agency's F-15 and F-14 jet fighters and missiles, although all
of these have been built under licence from U.S. Firms.
    MHI is now heading up five Japanese companies seeking to
develop the country's own fighter plane to replace the
currently used F-1 support fighters in the late 1990s.
    Military experts said Washington is putting strong pressure
on Tokyo to buy a U.S. Plane, either the McDonnell Douglas Corp
F-18 or General Dynamics Corp F-16, to reduce Japan's huge
trade surplus with the U.S.
    "It might be a good idea to jointly produce planes with U.S.
Makers as Japan is supported by the U.S. Defence umbrella," Iida
said.
    MHI also plans to cooperate with the U.S. In its Strategic
Defence Initiative space defence program by participating in
the project when it moves from the research stage, he said.
    The U.S. Has been seeking Japan's technological support.
    In fiscal 1985/86, aircraft accounted for 17.1 pct of MHI's
sales, shipbuilding 17 pct and power plants 27.9 pct. Iida said
the ideal ratio is power plants 30 pct, aircraft and special
vehicles 25 pct and shipbuilding 15 pct.
    As for the remaining 30 pct, Iida said he wanted to shift
the domestic focus away from heavy machinery sold to
manufacturers and towards household goods, but he declined to
specify which products.
    "By the end of this year, you may find our brand name on
your daily products, although this does not mean we will run
away from our mainstream business," he said.


.I 8964
.C
ship
.W
BANGLADESH PORT WORKERS END STRIKE.
    CHITTAGONG, March 12 - Cargo handling resumed at
Bangladesh's Chittagong port today after 7,000 workers ended
their three day walk-out triggered by a pay dispute, port
officials said.
    Loading and unloading of 14 ships stranded by the strike
started this morning and will be completed as quickly as
possible, they said.
    The strikers returned to work after an agreement was
reached last night between port authorities and the Port
Workers Association, they said without giving details.


.I 8965
.C
acq
.W
LEIGH-PEMBERTON OPPOSES TAKEOVER PROTECTION RULES.
   LONDON, March 11 - The Bank of England does not favour the
introduction of rules to shield companies from hostile takeover
attempts, its governor, Robin Leigh-Pemberton, said.
    Instead, merchant banks advising bidding companies must
show restraint and responsibility to avoid the excesses that
have marred recent takeovers, he told the Yorkshire and
Humberside Regional Confederation of British Industries' annual
dinner.
    Leigh-Pemberton also called on companies to improve ties
with institutional investors, suggesting representatives of
those institutions be granted seats on the boards of directors
of companies they invest in.
    "Boards cannot expect protection from unwelcome predators,
for that is but a short step from saying that they should be
protected from their own shareholders -- who are, after all,
the proprietors of the company," Leigh-Pemberton said.
    He added takeovers and mergers had an important role to
play in furthering economies of scale, integration and more
efficient market penetration. "The degree of success or failure
(of a takeover) has not in my experience depended on whether or
not the takeover was contested," he said.
    Leigh-Pemberton noted there had been excesses in takeover
activity in the recent past. "The aim is to pressurise a
company's management into action dedicated solely to a
favourable impact on the share price in the short-term, partly
or even primarily at the expense of the future," he said.
    Such bids "often depend for their success on creating a
highly-charged and artificial situation in the share market,
and give rise to temptations, on both sides of the battle, to
engage in aggressive, even manipulative tactics that are
immensely damaging to the interest of the shareholders," he
said.
    In a clear reference recent events, he said "those in the
City who act for companies or individuals .. Must, I suggest,
be ready to accept a full measure of responsibility -- even if
it entails opprobrium -- for the transactions that may result."
    They "should exercise the most careful judgment at the
outset with respect to the clients for whom they act and the
activities contenplated. Those who sow wind cannot expect the
whirlwind to visit elsewhere," he added.


.I 8967
.C
pet-chem
.W
TONEN SEKIYU AND EXXON UNIT STUDYING RESIN PROJECT.
    TOKYO, March 12 - <Tonen Sekiyukagaku KK> and <Exxon
Chemical Co>, a petrochemical division of Exxon Corp <XON>,
said they agreed to accelerate a study to set up an
equally-owned joint venture to make waterwhite resin in Japan.
    Details of the venture, to be based on Exxon Chemical
technology, will be set later, the companies said.
    Waterwhite resins are widely used in adhesive applications
for baby nappies, medical tapes, and other bonding agents.
    Tonen is a wholly-owned subsidiary of Toa Nenryo Kogyo KK
<TNEN.T> which is owned 25 pct by Exxon Corp.


.I 8968
.C
acq
.W
JAPANESE PURCHASE OF U.S. HIGH-TECH FIRM OPPOSED.
    WASHINGTON, March 12 - Commerce Secretary Malcolm Baldrige
has asked the White House to consider blocking the planned
Japanese acquisition of a major U.S. Computer and semiconductor
maker, U.S. Officials said yesterday.
    The officials told reporters Baldrige had serious concerns
on national security grounds about the sale of Schlumberger Ltd
<SLB> unit <Fairchild Semiconductor Inc> to Fujitsu Ltd
<ITSU.T>. The officials said the sale could leave the United
States overly dependent on a foreign company for equipment used
in advanced missiles, aircraft electronics and intelligence
gathering.
    The U.S. Officials added the sale would also worsen the
strained relations between the two countries stemming from the
huge Japanese trade surplus.
    The White House Economic Policy Council would consider the
sale in the coming weeks, they said.
    Defence Secretary Caspar Weinberger's position was not
known, but in the past, he has opposed the transfer of high
technology to foreign governments or companies.
    Computers made by U.S. Manufacturers are widely used in the
world, but Tokyo told U.S. Negotiators recently it prefers
local manufacturers and would not buy U.S. Supercomputers.


.I 8969
.C
cotton
.W
S.KOREA TO BUY MORE COTTON, ESPECIALLY U.S. COTTON.
    SEOUL, March 12 - South Korea plans to import about 387,000
tonnes of cotton this year compared to 225,000 tonnes in 1986,
trade ministry officials said.
    More than three quarters of the total, some 290,000 tonnes,
will come from the United States. That will be a 93.7 pct
increase on 1986 when U.S. Imports totalled 150,000 tonnes, an
official said.
    He said the U.S. Increase is due partly to the
competitiveness of American cotton and partly to efforts by
Seoul to reduce its trade surplus with Washington. South Korea
is the second largest importer of U.S. Cotton after Japan.


.I 8970
.C
wheat;grain;
.W
AWB SAYS AUSTRALIAN WHEAT SALES OVER 10 MLN TONNES.
    MELBOURNE, March 12 - The Australian Wheat Board's (AWB)
1986/87 export program is well advanced with over 10 mln tonnes
already sold, AWB general manager Ron Paice said.
    "We are certainly within reach of our 15 mln tonne export
target for the year," he said in a statement.
    He did not detail the commitments already made, but an AWB
spokesman said they include sales to Egypt, China, Iran, the
Soviet Union and Iraq.
    In the 1985/86 wheat year ended September 30, the AWB
exported a record 15.96 mln tonnes.
    Paice also said the 1986/87 Australian wheat harvest has
ended after a long, cool summer with 15.14 mln tonnes delivered
to the AWB.
    The season produced another good crop, with only 0.2 pct of
receivals being downgraded to feed quality, he said.
    However, it is likely that some weather-damaged grain was
still being held on farms and further milling and feed wheat
may be delivered following the recent announcement of the final
Guaranteed Minimum Price for 1986/87, he said.
    Paice did not give a crop estimate, but the AWB's February
Wheat Australia publication put the crop at 16.7 mln tonnes.
    But the AWB spokesman said it is likely this estimate could
turn out to be too high, based on the receivals level, and the
final crop figure would probably be nearer to 16.2 mln tonnes.
The official estimate is not yet available.
    In the 1985/86 season, the AWB received 15.08 mln tonnes of
the 16.13 mln tonne crop.
    Another 422,000 tonnes was retained on-farm and 620,000
sold under the permit system introduced in 1984/85 to allow
farmers to sell feed wheat to the grain trade outside the AWB's
receival system, according to Bureau of Agricultural Economics
data.


.I 8971
.C
acq;gold;
.W
NORTH BH SETS ONE-FOR-FIVE OFFER FOR NORGOLD FLOAT.
    MELBOURNE, March 12 - North Broken Hill Holdings Ltd
<NBHA.ME> (NBH) said it will offer one <Norgold Ltd> share for
every five NBH shares in the float of its newly created gold
offshoot.
    The 20 cent par-value shares will be offered at 22 cents to
shareholders registered April 3, NBH said in a statement.
    Norgold's issued capital will be 240.5 mln shares, of which
63 pct will be held by NBH after 89 mln are issued to
shareholders to raise 19.6 mln dlrs, it said.
    Norgold will take control of a portfolio of precious metal
exploration and pre-development interests held by NBH.
    The major gold deposit to be acquired by Norgold is 100 pct
of the Bottle Creek deposit, west of Leonora in Western
Australia, NBH said.
    Production of gold from the project, at an annual rate of
35,000 ounces, is scheduled to begin early in 1988.
    Norgold will also have a 10 pct stake in the Coronation
Hill gold/platinum project in the Northern Territory and 43 pct
of the Poona copper/gold project in South Australia.
    Other gold exploration interests to be acquired by Norgold
are in Western Australia, Queensland, New South Wales and
Tasmania, NBH said.


.I 8974
.C
ship
.W
STRIKING BRAZIL SEAMEN THREATEN MASS RESIGNATION.
    By Stephen Powell, Reuters
    SANTOS, Brazil, March 12 - Striking seamen said they would
offer their collective resignation rather than end their
13-day-old national strike on management's terms.
    The seamen said they were spurred to their decision after
marines occupied the ship Docemarte in Santos harbour Tuesday
night. They said seamen on the vessel were being forced to work
under duress.
    President Jose Sarney's government despatched troops to
Brazil's ports and oil installations on Tuesday.
    Seamen in Santos, Brazil's main port, are in defiant mood.
One of their leaders, Orlando dos Santos, told Reuters that
most of the 1,100 seamen in the port offered their resignations
on Wednesday. The national strike headquarters in Rio de
Janeiro said seamen were offering to resign in all the
country's main ports.
    The strike by 40,000 seamen comes as Brazil faces a serious
debt crisis brought on by a sharp deterioration in its trade
balance. The country needs all the foreign exchange it can get,
and shipowners have been quick to denounce seamen for the harm
the strike is doing to exports.
    An advertisement placed in the newspapers by the Shipowners
Association read, "The seamen's strike is illegal, irrational
and unpatriotic."
    The seamen respond that they cannot live on their present
salaries. According to officical pay lists available in the
union's office, the basic pay for ordinary seamen is 1,977
cruzados a month, while various allowances can bring their
total pay up to 4,000 cruzados a month.
    At the other end of the scale, captains earn 7,993 cruzados
a month basic pay, which is brought up to 15,229 cruzados with
allowances. 
    "Brazil's seamen are the second worst paid in the world,
after Ghana's," dos Santos said. He said the seamen had not
received a pay increase since February 1986, and prices have
doubled since then with the collapse of the government's
Cruzado Plan price freeze.
    Talks in Rio de Janeiro Wednesday involving Labour Minister
Almir Pazzionotto, seamen and employers failed to resolve the
dispute. The seamen are demanding pay raises of about 200 pct
but have been offered less than half that.


.I 8975
.C
reserves
.W
****** German net currency reserves rise 400 mln marks to 87.0 billion - Bundesbank.
Blah blah blah.

.I 8976
.C
coffee
.W
INDONESIAN COFFEE PRODUCTION MAY FALL THIS YEAR.
    JAKARTA, March 12 - Indonesia's coffee production in
1986/87 ending September 30 may fall slightly from last year's
level of 360,000 tonnes, Dharyono Kertosastro, chairman of the
Association of Indonesian Coffee Exporters told Reuters.
    He said shade trees had been damaged by pests and this may
have affected the crop, though it remains to be seen how
seriously. Indonesia's main crop is harvested next month.
    He gave no figure for expected output, except to say it
would probably be down a little from 1985/86. He said stocks
were about normal at 90,000 tonnes.
    Kertosastro predicted that exports were unlikely to rise
much from last year's level of 320,000 tonnes. "I expect exports
will be a bit more, maybe 330,000 tonnes, but not above that,"
he said. Exports in 1985/86 were valued at 944 mln U.S. Dlrs,
but the value could fall by 30 pct this year because of low
prices, he added.
    Dharyono said production was behind a five year plan target
of 420,000 tonnes for the current year, but Indonesia is trying
to boost output through introduction of higher yielding seeds,
better training for farmers and increased use of fertilizers.


.I 8977
.C
acq
.W
RENOUF SELLS 10.83 PCT NZI STAKE TO BRIERLEY.
    WELLINGTON, March 12 - <Renouf Corp Ltd> said it sold its
10.83 pct stake in <NZI Corp Ltd> to <Brierley Investments
Ltd>, (BIL), for 207.7 mln N.Z. Dlrs.
    Renouf managing director Mike Cashin said in a statement it
had been Renouf's intention to build up a long-term strategic
position in NZI. "But it became clear to us that it was in the
best interests of both NZI and ourselves for Brierley
Investments to acquire our holding," he said.
    He said Renouf built up its NZI holding over the past six
months. The sale comprised 74.9 mln shares at 2.725 N.Z. Dlrs a
share and 2,095 warrants at 1,709 dlrs each.
    The warrants are attached to a 150 mln Swiss franc note
issue. Each bond of 5,000 francs carries a detachable warrant
entitling the bearer to 2,486 NZI shares.
    In its 1986 annual report BIL reported that it held a 19
pct stake in NZI.
    NZI has 673.4 mln ordinary shares on issue. Total capital
including shares attached to warrants is 678.8 mln shares.
    Cashin said the sale will result in a significant profit
and places Renouf in a good position to consolidate on recent
transactions and pursue other opportunities.
    NZI shares were at 2.18 N.Z. Dlrs, BIL at 4.08 and Renouf
at 6.15 at the close of trading.
    BIL executives were unavailable for comment.


.I 8978
.C
earn
.W
BOLIDEN  AB <BLDS ST> 1986 RESULTS.
    STOCKHOLM, Mar 12 -
    Group loss after financial income and expenses 1.08
    Billion vs loss 71 mln crowns
    Sales - 12.38 billion crowns vs 6.16 billion.
    No proposed dividend vs 10 crowns.
    Note - The company this year consolidated wholesale and
investment conglomerate Ahlsell AB.


.I 8979
.C
gold
.W
BRITAIN TO MINT NEW "BRITANNIA" GOLD COIN.
    LONDON, March 12 - Britain will from next autumn mint and
market a new bullion coin called the "Britannia" containing one
ounce of 24 carat gold, together with bullion coins of smaller
denominations, a Treasury official said.
    The new investment coin, to be sold worldwide, will
fluctuate in price according to the international price of
gold.
    The smaller coins will be in denominations of a half ounce,
a quarter ounce and a tenth of an ounce.

.I 8980
.C
earn
.W
SAUDI BANKS FACE FURTHER LEAN PERIOD.
    By Stephen Jukes, Reuters
    RIYADH, March 12 - Saudi Arabia's 11 commercial banks are
reporting a further decline in profits for 1986 as increasing
provisions have to be set aside to cover the burden of non-
performing loans.
    Bankers in the Saudi capital said the need to build
reserves for bad and doubtful debts may start to decline a
little this year.
    But the kingdom's still sluggish economy and legal problems
hampering traditional lending operations mean earnings will
remain vulnerable.
    One senior bank credit officer said "The work is largely
done in terms of identifying bad loans and making provisions,
but banks are still going to face difficulties earning money."
    The sudden decline of Saudi Arabia's corporate sector in
1983 - culminating in a number of debt reschedulings - has
taken a heavy toll of bank profits, with first results now
appearing for 1986 showing a fourth successive year of broad
decline.
    The cumulative net 1985 earnings of the kingdom's banks had
sunk to 827.9 mln riyals from 2.66 billion in 1982 before world
oil prices tumbled.
    Of the kingdom's nine joint-venture banks which operate on
the Gregorian calendar year, four have already reported and
revealed a further profits decline - or net loss - for 1986 at
the expense of increased provisions.
    The newest and smallest of the joint ventures, <United Saudi
Commercial Bank> (USCB) reported a 1986 net loss of 15.9 mln
riyals, marginally less than 1985's shortfall of 17.0 mln.
    Profits before provisions were sharply higher, in part
reflecting an 18 pct staff cut last year. But the bank nearly
trebled the amount set aside against bad and doubtful loans to
60 mln riyals from 22 mln in 1985.
    Other results released so far show <Saudi American Bank>
(SAMBA) reporting a 53.8 pct fall in 1986 net profit to 80.7
mln riyals, while <Al Bank Al Saudi Al Fransi>, known as Saudi
French, slid 14 pct to 94.9 mln riyals.
    Both Saudi American, owned 40 pct by Citicorp's <CCI.N>
Citibank NA and Saudi French, 40 pct owned by Banque Indosuez,
increased provisions sharply.
    <Arab National Bank>'s net profit fell 17.8 pct to 152.1
mln riyals and provisions were more than doubled to 86.6 mln
riyals.
    Bankers said there are first signs that the number of non-
performing loans has stopped growing as the decline in the
Saudi economy bottoms out.
    Few are willing to predict a sharp upturn in economic
activity, but one banker said "The top 50 pct of the Saudi banks
are now at or close to international levels on provisions."
    From 1982 to 1985, the kingdom's largest bank <National
Commercial Bank> (NCB) stashed away 1.7 billion riyals in
provisions or 8.9 pct of its total loans and advances to the
private sector, bankers calculated.
    Between 1982 and 1985, <Riyad Bank>, NCB's rival as the
second biggest of the two all-Saudi shareholding banks, had
covered 12.8 pct of its loans and advances. Both banks operate
on an Islamic year that does not coincide with the other nine.
    Although the Saudi Arabian Monetary Agency (SAMA) has been
tightening supervision, there is still no standardised rule for
declaring loans as non-performing.
    Bankers say this makes comparison of profit figures
difficult because some banks still book non-accruing interest
as revenue while others follow more conservative practices in
force in major world financial centres.
    Bankers generally said NCB, Riyad Bank and the
joint-ventures SAMBA, Saudi French and Arab National Bank rank
as the strongest earners.
    Other banks such as <Saudi British Bank>, 40 pct owned by
the <British Bank of the Middle East>, are disadvantaged by a
relatively low deposit base.
    Saudi British slashed 1985 profit 91 pct to just 9.1 mln
riyals and 1986 accounts due soon are expected to show another
low figure. But the bank has traditionally been one of the most
conservative in making provisions.
    Bankers said SAMA has proved it is not prepared to see a
Saudi bank go under and not only supported <Saudi Cairo Bank>
after its troubled 1985 accounts came to light but also made
available cheap deposits to <Saudi Investment Bank> and USCB.
    The banks can on-lend these to generate profit, but
generally banks are awash with liquidity since they are
unwilling to risk incurring fresh non-performing loans.
    And while banks in more liberal financial markets can
attempt to diversify away from traditional lending,
conservatism in Saudi banking has made it difficult to generate
fee income from new investment banking products.
    One banker said "Operating earnings in the Kingdom are not
good."
    Reflecting the caution in new lending, the amount of
advances is showing a declining trend, while the days when
banks had ample funds in interest-free current accounts to
invest are disappearing as Saudi customers seek a better return
on their money.
    In 1979, the ratio of interest-bearing accounts to current
accounts was 27 to 73 pct. Today, only about 40 pct of customer
funds are held on current account.


.I 8982
.C
acq
.W
GUINNESS CHALLENGES 5.2 MLN STG PAYMENT TO LAWYER.
    ST HELIER, Jersey, March 12 - Guinness Plc <GUIN.L> , the
brewing group, has challenged a 5.2 mln stg payment to a U.S.
Lawyer who says he organised its controversial takeover of
Scotch whisky maker <The Distillers Co Plc>.
    But attorneys for lawyer Thomas Ward, a member of the
Guinness board, told a court yesterday in the Channel Island of
Jersey that Ward saw the payment as his reward for services in
last year's 2.7 billion stg takeover.
    Britain's Department of Trade and Industry is investigating
the takeover.
    Guinness says its former chairman Ernest Saunders and Ward
"breached their fiduciary duty" in authorising the payment to
Ward, via a Jersey-based company, Marketing and Acquisitions
Consultants and has gone to the Jersey court to recover it.
    MAC said in defence documents that Ward was the main
negotiator in the battle for Distillers against rival bidder
Argyll <AYLL.L> Group Plc.
    "The bid would not have been successful but for the ...
Services of Mr Ward," MAC attorneys said in the documents
submitted in court. "The payment was, in all the circumstances,
reasonable, proper and fully earned."


.I 8984
.C
coffee
.W
INDONESIA PRESSING FOR COMPROMISE OVER COFFEE.
    By Jeremy Clift, Reuters
    JAKARTA, March 12 - Indonesian coffee exporters are
preparing for a period of depressed prices while urging their
government to lobby for a resolution of the deadlocked issue of
export quotas, the chairman of the Association of Indonesian
Coffee Exporters (AICE) told Reuters.
    Dharyono Kertosastro said in an interview that Indonesia,
the world's third largest producer, is trimming costs and
improving its marketing while seeking a compromise on quotas.
    "But as long as Brazil sticks to its hardline position, we
can never bridge the gap," Dharyono said.
    Indonesia was one of a group of eight producing countries,
along with Costa Rica, the Dominican Republic, Ecuador,
Honduras, India, Papua New Guinea and Peru, which proposed a
new quota system at last month's failed International Coffee
Organistion (ICO) talks in London.
    Brazil, which would have had its quota reduced under the
Group of Eight scheme, blocked the proposal.
    AICE officials are now hoping Colombia can use its contacts
with Brazil to suggest a compromise.
    Edward Muda, an AICE official who attended the ICO
negotiations, said Latin American members of the Group of Eight
were in contact with Colombia, the world's second largest
producer, but gave no details.
    "Colombia has shown interest because they will gain from a
compromise. Without one, they will suffer if the present market
stays like it is," Muda said.
    He said Indonesia was in contact with consumers such as the
U.S., Japan, the Netherlands, West Germany and Canada ahead of
an ICO executive board meeting scheduled for April 1.
    Dharyono said the AICE will send delegations to the U.S.
And Japan to brief Indonesian embassy officials there and press
them to present Indonesia's case more firmly.
    He urged the Indonesian government to do more to help the
country's coffee traders through the ICO negotiations.
    Muda said the Group of Eight had some common ground with
the big consumers because they agreed on the need for basing
quotas on what he termed "realistic criteria."
    The breakaway group believes the old quota system, which
gives Brazil a 30 pct share of the quota exports, does not
reflect up-to-date supply and demand trends.
    Brazil has stuck rigidly to its insistence that the old
system be applied.
    Export quotas were suspended in February 1986 when market
prices surged because of the failure of the Brazilian crop.
    Although prices have long since come down to a point where
export controls could be reintroduced, producers and consumers
at the 75-member ICO have not been able to agree on new
guidelines. Brazil and the U.S., The largest consumer, are both
refusing to alter their positions.
    Dharyono said if new quotas are not agreed he believed
Indonesia was well placed to survive low prices.
    Indonesian farmers are trimming production costs and the
AICE is improving its marketing system, Dharyono said.
    Indonesia's coffee output in 1986/87, ending September 30,
is expected to stagnate or fall slightly from last year's level
of 360,000 tonnes, he said.
    He said stocks, at 90,000 tonnes, were about average for
the time of year.


.I 8987
.C
earn
.W
JAPANESE CORPORATE EARNINGS RECOVERY PREDICTED.
    TOKYO, March 12 - Japanese corporate earnings will rise 8.9
pct in fiscal 1987/88 for the first year-on-year increase in
three years, partly because of the yen's stable exchange rate,
the Nomura research institute said.
    Sales of all industries are predicted to rise 1.9 pct in
the year, which starts April 1, the research arm of Nomura
Securities Co said in a statement.
    Recurrent profits were estimated to fall 20 pct in the
current fiscal year with sales forecast to drop 14 pct.
    The forecast assumes an average rate of 148.5 yen to the
dollar in 1987/88, compared with 160 yen in the current year.
    Corporate efforts to cope with the yen's appreciation, such
as cutting production costs, are expected to bear fruit next
fiscal year, the institute said. The economy should also
benefit from pump-priming expected from the government and a
halt in rising prices of manufactured goods, it said.
    Recurrent profits of manufacturing industries are projected
to rise 29.6 pct next fiscal year against an estimated 40.1 pct
fall in the current year.
    Non-manufacturing sector profits will decline 4.5 pct in
1987/88 against an estimated 2.2 pct rise in the current year,
it said.


.I 8988
.C
earn
.W
BOLIDEN SAYS RESULTS BURDENED BY LOSS WRITEOFF.
     STOCKHOLM, Mar 12 - Swedish mining and metals group
Boliden AB <BLDS ST> forecast a return to profitability during
1987 after recording a 1.08 billion crown 1986 loss burdened by
a massive write-off.
    The company, which consolidated the Swedish wholesale and
investment conglomerate <Ahlsell AB> this year, said the result
included restructuring costs and write-offs of 802 mln crowns.
    "These costs have arisen as a results of a change of
direction for the group. They are mainly one-off but they have
burdened the annual accounts," the company said in a statement.
    Boliden said the company's liquid assets were 1.36 billion
crowns at year-end which together with an investment portfolio
of 1.60 billion made it one of the most liquid Swedish
companies.
    As a result of the 1986 losses, the board proposed
cancelling dividend for the year although it predicted a return
to profitability during 1987, the statement added.
    Swedish tyres, process equipment and components firm
<Trelleborg AB> has taken a majority stake in Boliden since the
beginning of this year. Trelleborg then said it had no plans
for consolidating Boliden.


.I 8989
.C
oilseed;soybean;
.W
TAIWAN BUYS 27,000 TONNES OF U.S. SOYBEANS.
    TAIPEI, March 12 - The joint committee of Taiwan's soybean
importers awarded a contract to Richco Grain Ltd of New York to
supply a 27,000-tonne cargo of U.S. Soybeans, a committee
spokesman told Reuters.
    The shipment, priced at 210.34 U.S. Dlrs per tonne c and f
Taiwan, is set for delivery between March 20 and April 5, he
said.
    Taiwan's soybeans imports in calendar 1987 are targetted at
1.81 mln tonnes, against an actual 1.74 mln tonnes imported in
1986, he said.
    All the imports come from the U.S., He added.


.I 8990
.C
wheat;grain;sugar;
.W
CHINA JANUARY WHEAT/SUGAR IMPORTS BELOW YEAR AGO.
    PEKING, March 12 - China's wheat imports in January were
218,000 tonnes, down from 393,000 in January 1986, the China
Daily Business Weekly said, quoting customs figures.
    It said imports of sugar were 25,165 tonnes, down from
54,000, but exports of rice rose to 71,144 tonnes from 20,000.
It gave no more details.


.I 8991
.C
bop;trade;
.W
FRENCH 1986 CURRENT ACCOUNT SURPLUS REVISED.
    PARIS, March 12 - The French 1986 current account balance
of payments surplus has been revised slightly upwards to 25.8
billion francs from the 25.4 billion franc figure announced
last month, the Finance Ministry said.
    This compares with a 1.5 billion deficit in 1985, and while
it is the first surplus since 1979, is substantially lower than
the 50 billion surplus forecast by the previous socialist
government before they lost office in March last year.
    Net long-term capital outflows rose sharply to 70.5 billion
francs last year from 8.8 billion in 1985, largely due to a
major program of foreign debt repayment, the ministry said.
    In the fourth quarter alone the unadjusted surplus rose to
14.1 billion francs from 6.6 billion the previous quarter, but
the adjusted surplus fell to 7.4 billion from 9.1 billion.
    Fourth quarter medium and long-term foreign debt repayments
exceeded new credits by 11 billion francs.


.I 8993
.C
gnp
.W
MALAYSIA OPTIMISTIC OVER ECONOMIC OUTLOOK FOR 1987.
     KUALA LUMPUR, March 12 - Malaysia's Central Bank, Bank
Negara, said the economic outlook for 1987 is good in view of a
marked improvement in commodity and oil prices in the later
months of last year.
    It said in its latest quarterly review that real gross
domestic product averaged an annual growth of 1.1 pct over the
first nine months of last year compared with a decline of 0.1
pct in the corresponding period in 1985.
    Growth was generated mainly by the manufacturing sector, it
added.


.I 8994
.C
earn
.W
ROWNTREE REPORTS PRETAX PROFIT AT 84 MLN STG.
    LONDON, March 12 - Rowntree Mackintosh Plc <RWNT.L>
announced it made a pretax profit of 84 mln stg in the 53 weeks
ending January 3, 1987, compared with 79.3 mln stg in the
previous year.
    Turnover was up to 1.29 billion stg from 1.2 billion. A
final dividend of 9.2p was proposed, after a final 8.2p last
year. Earnings per share rose to 35p from 34.8p.
    The results were broadly in line with market expectations,
leaving shares at 499p in early trading, up one pence from
yesterday's close, but slightly off pre-announcement opening
levels.
    Profit on ordinary activities after tax was 66.2 mln stg,
up from the previous year's 60.7 mln.
    The U.K. Remained Rowntree's largest centre for trading
profits, accounting for 47.9 mln stg, up from 45.3 mln in 1985.
Profit from its second largest geographical area, North
America, slipped to 34.7 mln stg from 37.2 mln. North American
profits were affected by the fall of the value of the dollar.
    Operations in continental Europe made 7.8 mln stg in
trading profit, up from 3.4 mln, with 4.0 mln stg made in
Australasia, up from 2.3 mln, and 11.3 mln stg from the rest of
the world, against 13.1 mln in the previous year.
    Extraordinary items amounted to a 11.3 mln debit after a
16.5 mln debit previously. A company spokesman said this
represented additional provisions for the cost of
rationalisation plans announced in earlier years.
    Rowntree expects North American operations will this year,
ahead of company expectations, be of the same order as those
from the U.K. And the rest of Europe combined, the statement
said. A spokesman said no specific figures had been forecast.
    Acquisitions will continue to be sought worldwide,
including further moves in the speciality retailing business
which Rowntree first entered in 1983, the statement said.
    Rising profit from Europe this year was forecast by
chairman Kenneth Dixon in a statement. He added the performance
of seven businesses bought last year was encouraging.
    The U.K. Confectionery side gained market share and
increased trading margins. The Sun-Pat British grocery concern
increased profit and Rowntree's small health food business,
Holgates, raised earnings 10-fold, the statement said.
    Offsetting factors included currency movements, which cost
the company nearly 5.0 mln stg. Sales tax hurt Canadian profits
on confectionery operations, and the company faced strong
competition in the U.K. Snack and Mid East export markets.


.I 8996
.C
oilseed;rapeseed;soybean;sunseed;
.W
RISE SEEN IN FRENCH RAPESEED, SOYBEAN SOWINGS.
    PARIS, March 12 - France's Oilseed and Bean Cooperatives
Federation, FFCOP, said it expected French rapeseed sowings for
the 1987 harvest to rise by between 54.6 pct and 67.5 pct to
between 600,000 and 650,000 hectares from 388,000 planted last
year.
    Its latest estimates also suggested a 66.7 pct rise in
soybean sowings to 80,000 ha from 48,000 last year. Sunflower
sowings were expected to increase by between 8.6 pct and 14.6
pct from 829,000 ha. Pea sowings are estimated likely to rise
27.7 pct to 350,000 ha against 274,000, while field bean
sowings are forecast unchanged at 40,000.


.I 8997
.C
trade
.W
CHINA TRADE DEFICIT FALLS IN JANUARY.
    PEKING, March 12 - China's trade deficit in January fell to
310 mln dlrs from 460 mln in January 1986, the China Daily
Business Weekly said.
    Quoting customs figures, the paper said exports fell to
1.75 billion dlrs from 1.84 billion and imports fell to 2.06
billion from 2.3 billion.


.I 8998
.C
earn
.W
JACOBS SUCHARD AG <JACZ.Z> 1986 YEAR.
    ZURICH, March 12 -
    Net 190.9 mln Swiss francs vs 150.4 mln
    Turnover 5.24 billion vs 5.38 billion
    Dividend 160 per bearer vs 155 francs, 32 francs per
registered vs 31 francs, 16 francs per participation
certificate vs 15.50 francs
    Cash flow 294.3 mln vs 242.6 mln
    Note - Confirms forecast of results issued in January.
    Operating profit 337.6 mln vs 265 mln
    Depreciation 103.4 mln, up 12.2 pct
    Capital spending 84.6 mln, down 15.7 pct.


.I 9000
.C
earn
.W
****** British Telecom third quarter pre-tax profit 506 mln stg vs 452 mln.
Blah blah blah.

.I 9001
.C
money-fx
.W
BANK OF ENGLAND OFFERS EARLY HELP IN MONEY MARKET.
    LONDON, March 12 - The Bank of England said it had invited
the discount houses to make an early round of bill offers to
help offset a large liquidity shortage in the money market.
    It estimated the shortage at around 1.55 billion stg, one
adverse factor being the unwinding of a sale and repurchase
agreement, with the market having to buy back bills worth 542
mln stg from the Bank.
    Bills maturing in official hands and the treasury bill
take-up would drain 957 mln stg wile exchequer transactions and
a note circulation rise would take out 15 mln and 25 mln
respectively. Above target bankers' balances would add 10 mln.


.I 9002
.C
earn
.W
BRITISH TELECOM 3RD QTR ENDED DEC 31.
    LONDON, March 12 -
    Shr 5.1p vs 4.2p, making 15.3p vs 12.7p for nine months.
    Pre-tax profit 506 mln stg vs 452 mln, making 1.51 billion
stg vs 1.35 billion.
    Net profit before minorities 320 mln vs 268 mln, making 960
mln vs 807 mln.
    Note - Company's full name is British Telecommunications
Plc <BTY.L>.
    Third quarter turnover 2.40 billion stg vs 2.11 billion,
making 7.01 billion vs 6.16 billion for nine months.
    Operating profit 578 mln vs 520 mln, making 1.72 billion vs
1.56 billion.
    Net interest payable 72 mln vs 68 mln, making 208 mln vs
203 mln.
    Tax 186 mln vs 184 mln, making 552 mln vs 547 mln.
    Minorities nil vs nil, making two mln vs nil.


.I 9003
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN EARLY ASSISTANCE.
    LONDON, March 12 - The Bank of England said it had bought
bills worth 1.059 billion stg from the market for resale on
March 31 at rates of interest between 10-7/16 pct and 10-17/32
pct.
    Earlier, the Bank said it estimated the liquidity shortage
in the market today at around 1.55 billion stg.


.I 9004
.C
jobs
.W
DANISH UNEMPLOYMENT RISES TO 7.9 PCT IN JANUARY.
    COPENHAGEN, March 12 - Denmark's seasonally adjusted
unemployment rate rose to 7.9 pct of the workforce in January
from 7.8 pct in December, unchanged from January 1986, the
National Statistics Office said.
    The total of unemployed in January was 216,200 against
212,200 in December and 216,600 in January 1986.


.I 9005
.C
earn
.W
ROWNTREE MACKINTOSH PLC<RWNT.L> YEAR TO END JANUARY.
 LONDON, March 12 -
    Shr 35.0p vs 34.8p
    Div final div 9.2p vs 8.2p
    Pretax profit 84.0 mln stg vs 79.3 mln
    Net after tax 66.2 mln vs 60.7 mln
    Turnover 1,290.4 mln vs 1,205.2 mln
    Trading profit 105.7 mln stg vs 101.3 mln, consisting -
    U.K  47.9 mln vs 45.3
    Europe 7.8 mln vs 3.4 mln
    North America 34.7 mln vs 37.2 mln
    Australasia 4.0 mln vs 2.3 mln
    Rest of world 11.3 mln vs 13.1 mln


.I 9006
.C
money-fx;reserves;
.W
TAIWAN CLAMPS NEW CONTROLS ON CURRENCY INFLOWS.
    By Andrew Browne, Reuters
    TAIPEI, March 12 - Taiwan's new controls on currency
inflows, implemented today, are a desperate bid to stem a flood
of speculative money prompted by the local currency surge
against the U.S. Dollar, local and foreign bankers said.
    The central bank now has to clear remittances exceeding one
mln U.S. Dlrs earned from exports, shipping and insurance and
bank lending plus remittances of more than 10,000 dlrs from any
other source.
    Petitioners have to show their remittances relate to
genuine commercial transactions.
    Meanwhile, traders are no longer required to report all
outward payments concerning invisible trade, including freight,
insurance and royalties, to the central bank.
    But bankers said they believed the new controls would be
ineffective since businessmen could split up remittances into
smaller units or simply remit money through Taiwan's
flourishing currency black market.
    The bankers said the controls, announced on March 6, are a
panic reaction to U.S. Pressure, which has intensified over the
past week, for a faster appreciation of the Taiwan dollar to
slow the growth of Taiwan's exports to the U.S.
    The government has denied local press reports Washington is
pressing for an exchange rate of up to 28 dlrs.
    The Taiwan dollar opened four cents up today at 34.70.
    "I don't think the central bank has a final target," said an
executive with a U.S. Bank. Other bankers and economists said
they are wary of making any firm predictions about how far the
Taiwan dollar will rise.
    Taiwan's trade surplus with the U.S. Hit 13.6 billion U.S.
Dlrs last year against 10.2 billion in 1985. The surplus
widened in the first two months of the year to 2.35 billion
dlrs from 1.87 billion in the same period last year.
    Economists estimate up to five billion dlrs in speculative
money flowed into Taiwan in 1986.
    This inflow helped boost foreign exchange reserves to more
than 51 billion dlrs from just under 25 billion this time last
year and provided further upward pressure on the currency.
    The Taiwan dollar has appreciated by almost 15 pct against
the U.S. Currency since September 1985, further encouraging
speculators.
    Central bank governor Chang Chi-cheng said last week
Washington's pressure plus rising foreign exchange reserves
meant a further strengthening in the currency is inevitable.
    Many local bankers argue the only effective solution to the
currency problem is to drop foreign exchange controls and allow
the local dollar to find its own level.
    "Lifting exchange controls is the final answer, but the
central bank is not prepared to do it. It simply does not want
to take the risk," said one local banker.
    He said he believed the new restrictions are a temporary
measure designed to buy time as the central bank grapples with
the exchange rate problem.
    The restrictions are a bureaucratic imposition and skirt
around the real issue, he said.
    Taiwan needs a fundamental restructuring of foreign
exchange controls, said an executive with a western bank.
    "The controls will create more paperwork, but the extra bank
charges will not outweigh the profits of speculation," said the
manager of a European bank.
    Economists criticised the controls, saying they could
antagonise Washington, which is pushing for further economic
liberalisation in Taiwan.
    "Instead of liberalising outflows, the government has
restricted inflows," said Kate Newman, an economist with Vickers
da Costa.
    A local banker, who declined to be named, said, "It's
basically ridiculous. It's a backward movement and goes against
the government's liberalisation programme."
    Taiwan last year eased some of its financial regulations to
enable Taiwan nationals to invest in foreign government bonds,
treasury bills and certificates of deposit and to allow
individuals to take 5,000 U.S. Dlrs in cash out of the country
each year.


.I 9007
.C
earn
.W
GLYNWED INTERNATIONAL PLC <GLYN.L> 1986 YEAR.
    LONDON, March 12 -
    Shr, net basis 27.47p vs 22.15p
    Div 6.5p vs 5.4p making 10.1p vs 8.4p
    Pretax profit 46.1 mln stg vs 35.6 mln
    Net after tax 30 mln vs 23.3 mln
    Extraordinary items debit 3.8 mln vs debit 2.3 mln
    Interest payable 2.7 mln vs 4.0 mln
    Net borrowings 7.6 mln vs 16.1 mln
    Turnover 478.9 mln vs 464.1 mln


.I 9009
.C
sugar
.W
DUTCH SUGAR TRADE DENY INVOLVEMENT IN OFFER.
    ROTTERDAM, March 12 - Dutch sugar traders deny involvement
in a plan to offer more than 850,000 tonnes of sugar to
intervention in protest at EC export policy and prices, traders
told Reuters.
    Although some 2,500 tonnes of sugar have been offered to
intervention in the Netherlands, Dutch producers and traders
said this sugar was actually Belgian and was being offered by
the Belgian industry.
    "We sympathise with the actions of the French, West German
and Belgian traders and producers, but we are not party to it,"
a spokesman said.
    EC Commission sources said yesterday French traders planned
to sell 775,000 tonnes into intervention stocks, West German
traders 75,000 tonnes and Dutch traders 2,500. Dutch trade
sources gave the same figure for France, but estimated up to
110,000 tonnes offered by German traders and producers.
    The Dutch spokesman added, "The weekly export tender policy
and prices are squeezing the European sugar industry, and this
is the only way in which they can really register their
protest.
    "These are desperate actions, but we believe that most of
this offered sugar will be withdrawn within the three-week
breathing space allowed."


.I 9010
.C
earn
.W
GLYNWED SEES FURTHER PROGRESS IN 1987.
    LONDON, March 12 - Glynwed International Plc <GLYN.L> in a
statement accompanying their results that present indications
are that 1987 has started well and it is confident that the
year will be one of further progress.
    The company added that results in the U.S. Were poor and
the deterioration in the South African economy left its Falkirk
Industries unit with a loss of one mln stg. But it said there
was a continuing improvement in its core businesses.
    The extraordinary items debit of 3.8 mln stg arose on the
closure and disposal of various businesses.


.I 9011
.C
earn
.W
BRITISH TELECOM SEES SATISFACTORY 1986/87 RESULTS.
    LONDON, March 12 - British Telecommunications Plc <BTY.L>
expects to announce satisfactory results for its 1986/87
financial year ending March, chairman Sir George Jefferson said
in a third quarter statement.
    Full year results will be published in June. In the 1985/86
financial year, pre-tax profit rose to 1.81 billion stg from
1.48 billion in the previous period.
    Jefferson said good progress was made in the latest nine
months, while most customers were able to maintain their normal
level of calls during the recent strike by company engineers.
    The statement said a positive cash flow of 381 mln stg for
the first nine months will diminish in the final quarter due to
corporation tax and dividend payments.
    Earlier, the company reported third quarter pre-tax profit
for the period ended December 31 of 506 mln stg compared with
452 mln a year earlier. Nine month pre-tax was 1.51 billion stg
against 1.35 billion.
    British Telecom shares were last quoted at 246-1/2p, level
with late yesterday, in the wake of results which were in line
with market expectations, dealers said.


.I 9012
.C
sugar
.W
INDIA BUYS WHITE SUGAR FROM LONDON TRADERS.
    LONDON, March 12 - India yesterday bought two cargoes of
white sugar from London traders for April/May shipment and
granted the trade houses the option to sell an additional two
cargoes at the same price for May/June shipment, the firms
involved said.
    E D and F Man and Woodhouse, Drake and Carey both said they
sold single cargoes at 237.35 dlrs a tonne cif for April/May
and were granted options to sell an extra cargo each at the
same price for May/June at the Indian buying tender for three
to four cargoes of whites held yesterday. The tender had called
for a single cargo of prompt and two to three cargoes of
April/May.


.I 9013
.C
earn
.W
<NEXT PLC> <NEXL.L> FIVE MONTHS TO END JANUARY.
    LONDON, March 12 -
    Shr 7.67p vs 5.34p
    Div 1.5p vs 1.08p
    Pretax profit 30.12 mln stg vs 12.40 mln
    Net interest payable 2.55 mln vs 200 stg
    Net after tax 19.58 vs 7.44 mln
    Turnover excluding VAT 257.66 mln vs 74.09 mln
    Note - The company said it intends to issue a second
interim statement for the six months to July 1987 and to pay a
related dividend in early 1988.


.I 9014
.C
livestock;carcass;
.W
AUSTRALIA EXPECTS RISE IN MEAT EXPORTS TO MIDEAST.
    By Ian MacKenzie, Reuters
    BAHRAIN, March 12 - Australia expects meat and livestock
exports to the Middle East to maintain an upward trend this
year, managing director of the Australian Meat and Livestock
Corp, Peter Frawley, said.
    He told Reuters an improvement in the economic climate and
less competition from the European Community should lead in the
Gulf area to higher beef sales, which dropped from 33,000
tonnes in 1980 to just 2,300 tonnes last year.
    "In the last three to four months there has been a
resurgence of inquiries," he said.
    Frawley is on a Gulf tour which will also take him to Saudi
Arabia, the United Arab Emirates and Kuwait to assess market
potential.
    On beef exports, he said a 50 pct drop in European
Community intervention stock in the past 12 months would help
Australian sales.
    The fall meant the EC was not as aggressive in these
markets, where the Australian trade was the natural source of
supply, and Australia was "now back in," Frawley said.
    He said there was a debate in Australia as to whether the
Middle East market for livestock, which accounts for two-thirds
of meat export value to the area, would be maintained.
    He believed the trade would remain with a continuing demand
for fresh meat.
    The number of live sheep shipped last year to Saudi Arabia,
the biggest single market, was 3,214,159 compared with
2,939,226 in 1985. The numbers shipped to the United Arab
Emirates and Bahrain fell, however.
    Frawley said the slackening in demand in the Gulf had been
offset by other Arab countries around the Mediterranean.
    Other than livestock, Australia's overall meat sales to the
Middle East rose to 72,374 tonnes in 1986 from 52,403 tonnes
the previous year, largely due to the sale of 25,790 tonnes of
mutton and lamb to Iran.
    Australia sold 9,824 tonnes to Iran in 1985 after being
virtually excluded by New Zealand competition for several
years. Frawley said the 1986 sale contract had included a
barter provision, but Iran had paid in full in cash.
    Negotiations with the Iranians for 1987 shipments were
currently under way, with Iran again seeking credit and barter
provisions, he said.
    Frawley said there had been a tremendous growth in demand
for chilled lamb in the last four to five years and he
predicted this would continue.
    "The Middle East, and the Gulf in particular, is now
Australia's largest market for lamb, chilled and flown in.
Australia is in an ideal position to provide the supplies if
the market is willing to pay a premium for a fresh, young
product," he said.


.I 9016
.C
cotton
.W
INDIA 1986/87 COTTON EXPORT QUOTA UP 190,000 BALES.
    NEW DELHI, March 12 - India's raw cotton export quota has
been raised by 190,000 170-kg bales to 600,000 bales in 1986/87
ending August, still well below the 1985/86 quota of 1.35 mln
bales, Minister of State for Textiles R.N. Mirdha said.
    State and private agencies contracted to export 1.34 mln
bales in 1985/86, he told journalists. But only 433,000 bales
were shipped that year, with the rest to be delivered in
1986/87. About 758,000 bales from 1985/86 contracts were
shipped up to February 2 in 1986/87.
     The government will export 600,000 bales of long and
extra- long staple cotton in the three years from 1986/87, he
said.


.I 9018
.C
earn
.W
STE LYONNAISE DES EAUX <LYOE.PA> YEAR ENDED DEC 31.
    PARIS, March 12 -
    Consolidated attributable net 1986 profit 360 mln francs vs
279.8 mln.
    Parent company net profit 191 mln vs 150.9 mln.


.I 9019
.C
earn
.W
LYONNAISE DES EAUX FORECASTS 1987 PROFIT RISE.
    PARIS, March 12 - Consolidated attributable net profit of
Ste Lyonnaise des Eaux <LYOE.PA> is likely to rise by at least
10 pct this year from the 360 mln francs reported for 1986,
Chairman Jerome Monod told a news conference.
    Group turnover should rise about seven pct from the 15.7
mln reported for this year, while group investments should
total around 1.8 billion francs, somewhat above the 1.3 billion
annual average of the past three years, he added.
    Investments will be aimed mainly at developing the group's
leisure industry, health and communications activities, Monod
said.
    In the leisure sector the group planned a joint development
with Club Mediterranee <CMI.PA>, Club Med, of a 200 hectare
pleasure park at Puisaye in the Yonne department of Eastern
Central France, he said.
    Wholly-owned subsidiary Lyonnaise de Developpement
Touristique would carry out the construction work and financial
planning of the development which would be leased to Club Med
as operator of the complex, he said.
    He gave no financial details but said leisure sector
investments would total about 100 mln francs over the next
three years.
    Investments in the communications industry would go mainly
to develop the group's cable television activities and its 25
pct owned Metropole Television affiliate. Metropole recently
won the concession to operate a sixth television channel in
France.
    Financing requirement of Metropole would be about 700 mln
francs over the next four years, of which Lyonaise des Eaux
would provide about 175 mln, Monod said.
    Monod said Metropole aimed to win a 15 to 20 pct audience
share and to capture about 10 pct of the national television
advertising market.
    Total investment by the group in the communications sector,
including cable activities, would be between 300 mln and 400
mln francs over the next five years, mainly concentrated in the
coming year.
    Investment in cable operations would total between 150 mln
and 200 mln over the five years, with the aim of widening the
audience to 280,000 subscribers from 12,000, and boosting
turnover to around 450 mln francs a year from 10 mln.


.I 9020
.C
acq
.W
GUS MAKES 8.2 MLN STG AGREED OFFER FOR PANTHERELLA.
    LONDON, March 12 - Great Universal Stores Plc <GUS.L> said
it has made an agreed offer for <Pantherella Plc>, valuing the
company at 8.2 mln stg and each Pantherella ordinary share at
205 pence.
    The offer is based on eight new "A" non voting ordinary
shares in GUS plus 95.16 stg for every 100 ordinary
Pantherella.
    The new GUS shares will not receive the eight pence per
share interim dividend in respect of the year ending March
1987, the statement said.
    GUS has received irrevocable undertakings to accept the
offer in respect of 39.1 pct of Pantherella shares from the
company's directors and their families.
    The Pantherella board estimates the company, which
manufactures socks, will show a 1986 pretax profit of about
690,000 stg.


.I 9024
.C
earn
.W
<BOND CORP INTERNATIONAL LTD> NINE MOS TO DEC 31.
    HONG KONG, March 12 -
    Shr loss 17.4 H.K. Cents (no comparison)
    Dividend nil (no comparison)
    Net loss 11.49 mln dlrs.
    Notes - Net excluded extraordinary losses 27.91 mln dlrs.
Property valuation reserve surplus 67 mln dlrs.
    Results reflected trading in subsidiary <Humphreys Estate
Group> but excluded influence of a bulk of properties which the
firm bought late last year from Hongkong Land Co Ltd <HKLD.HK>
for 1.4 billion dlrs.
    Company controlled by Bond Corp Holdings Ltd of Australia.


.I 9026
.C
reserves
.W
GERMAN PUBLIC AUTHORITY BUNDESBANK HOLDINGS FALL.
    FRANKFURT, March 12 - The net position of federal states
worsened in the first March week, cutting public authority net
holdings at the Bundesbank by 500 mln marks, the central bank
said.
    States' cash deposits at the central bank fell to 800 mln
and they also drew down 1.2 billion marks in book credit, 900
mln marks more than in the prior week.
    By contrast, however, the federal government was able to
reduce its credit drawdown at the central bank by 900 mln marks
to 900 mln.
    Despite the stronger states' net needs in the week, their
cash position and other market dependent influences just about
balanced the outflow of liquidity from the money market through
an increase in cash in circulation, the Bundesbank said.
    Cash in circulation rose by 1.4 billion marks in the week
to 122.9 billion.
    Liquidity also came in through the maturing of short-term
treasury bills bought from the Bundesbank in the prior week.
    Gross currency reserves rose in the week by 400 mln marks
to 109.9 billion. Foreign liabilities of the Bundesbank were
largely unchanged at 22.8 billion marks, giving a rise in net
currency reserves of 400 mln to 87.0 billion, it said.
    The Bundesbank said its balance sheet total fell by 3.77
billion in the week to 218.45 billion.


.I 9027
.C
trade
.W
******CANADA JANUARY TRADE SURPLUS 533 MLN DLRS AFTER DECEMBER 965 MLN DLRS SURPLUS.
Blah blah blah.

.I 9028
.C
trade
.W
CANADA JANUARY TRADE SURPLUS 533 MLN DLRS.
    OTTAWA, Mar 12 - Canada had a trade surplus of 533 mln dlrs
in January compared with an upward revised 965 mln dlrs surplus
in December, Statistics Canada said.
    The December surplus originally was reported at 964 mln
dlrs. The January surplus last year was 1.19 billion dlrs.
    January exports, seasonally adjusted, were 9.72 billion
dlrs against 10.39 billion in December and 10.89 billion in
January, 1986.
    January imports were 9.19 billion dlrs against 9.43 billion
in December and 9.71 billion in January 1986.


.I 9030
.C
sugar
.W
HUNGARIAN 1987 SUGAR BEET AREA LITTLE CHANGED.
    BUDAPEST, March 12 - Hungary is to grow sugar beet on
105,000 hectares of land this year compared with some 95,000 in
1986, the official MTI news agency said.
    Diplomats said this reflected Hungary's policy of keeping
the sugar beet area stable under the current five-year plan
(1985-89) and producing enough to cover only domestic demand
despite the recent rise of world prices to 10 month highs.
    Drought cut the 1986 harvest to 3.58 mln tonnes from 4.07
mln in 1985. But a record yield of 130 kilos per tonne of beet
kept production at 454,000 tonnes, with 30,000 extra refined in
Yugoslavia from Hungarian beet. Output was 483,000 in 1985.


.I 9033
.C
earn
.W
KIDSTON SAYS HIGHER NET REFLECTS GOLD SALE RISE.
    BRISBANE, March 12 - <Kidston Gold Mines Ltd> attributed
the rise in 1986 net profit to higher prices and an increase in
gold sales to 237,969 ounces from 206,467 ounces in 1985.
    The <Placer Development Ltd> offshoot, which operates
Australia's largest gold mine, in North Queensland, earlier
reported net profit rose to 60.50 mln dlrs from 50.76 mln in
the 1985 period of 10 months from the start of production.
    Sales of silver also rose to 165,968 ounces from 109,516.
    Kidston said in a statement it will spend about 5.5 mln
dlrs to upgrade its mill grinding circuit to a mill-ball,
mill-crushing circuit to boost output by 25 pct from end-1987.


.I 9035
.C
tin
.W
BULLETIN SAYS TIN PRICE MAY RISE TO 20 RINGGIT.
    KUALA LUMPUR, March 12 - The tin price is likely to rise to
20 ringgit a kilo this year because of the producers' accord on
export quotas and the reluctance of brokers and banks to sell
the metal at lower prices, a Malaysian government bulletin
said.
    The Malaysian Tin bulletin said it is in producers'
interest to keep to their quotas to limit total exports to
90,000 tonnes and to gradually deplete the 80,000 tonnes
overhang.
    It said consumption by industrialised countries should stay
at 160,000 tonnes and that International Tin Council creditors
and brokers are not likely to dump their stocks excessively
unless there is a large and abrupt price jump.
    The continued depreciation of the dollar could also help
push up the price of tin, the bulletin said.
    A depreciation of the dollar means the depreciation of the
ringgit which is closely pegged to it, making the price of tin
cheaper in sterling terms, it added.
    "Even in the absence of economic rationale in the tin
market, psychological optimism alone is sufficient to secure a
price recovery of up to 20 ringgit per kilo," the bulletin said.


.I 9036
.C
earn
.W
<KIDSTON GOLD MINES LTD> 1986 YEAR.
    BRISBANE, March 12 -
    Shr 48.4 cents vs 40.6
    Yr div 37 cents vs 15
    Net 60.50 mln dlrs vs 50.76 mln
    Turnover 134.54 mln vs 100.63 mln
    Other income 1.02 mln vs 920,000
    Shrs 125 mln vs same.
    NOTE - Company paid total 37 cents in previously declared
quarterly divs vs 15. Net is after tax 173,000 dlrs vs 285,000,
interest 9.67 mln vs 8.05 mln and depreciation 11.76 mln vs
9.59 mln.


.I 9038
.C
crude
.W
CHINA CLOSES SECOND ROUND OF OFFSHORE OIL BIDS.
    PEKING, March 12 - China has closed the second round of
bidding by foreign firms for offshore oil exploration rights,
the China Daily has reported.
    It quoted a spokesman for the China National Offshore Oil
Corp (CNOOC) as saying China signed eight contracts with 15
foreign firms for blocks in the Pearl River mouth and south
Yellow Sea covering a total area of 44,913 sq km.
    Second round bidding began at the end of 1984 and only one
well has so far produced results -- Lufeng 13-1-1, 250 km
south-east of Shenzhen, with an output of 6,770 barrels a day.
The well was drilled by a group of Japanese companies.
    The spokesman added CNOOC was ready to enter into contracts
for offshore blocks before third round bidding began. He did
not say when this would be, but added the contracts would not
be bound by restrictions imposed during the second round.
    China has signed 36 oil contracts and agreements with 37
companies from 10 countries since 1979, when offshore
exploration was open to foreigners. Eleven contracts were
terminated after no oil was discovered.
    Foreign firms have invested 2.1 billion dlrs on offshore
China since 1979.


.I 9040
.C
acq
.W
LEIGH-PEMBERTON OPPOSES TAKEOVER PROTECTION RULES.
   LONDON, March 11 - The Bank of England does not favour the
introduction of rules to shield companies from hostile takeover
attempts, its governor, Robin Leigh-Pemberton, said.
    Instead, merchant banks advising bidding companies must
show restraint and responsibility to avoid the excesses that
have marred recent takeovers, he told the Yorkshire and
Humberside Regional Confederation of British Industries' annual
dinner.
    Leigh-Pemberton also called on companies to improve ties
with institutional investors, suggesting representatives of
those institutions be granted seats on the boards of directors
of companies they invest in.
    "Boards cannot expect protection from unwelcome predators,
for that is but a short step from saying that they should be
protected from their own shareholders -- who are, after all,
the proprietors of the company," Leigh-Pemberton said.
    He added takeovers and mergers had an important role to
play in furthering economies of scale, integration and more
efficient market penetration. "The degree of success or failure
(of a takeover) has not in my experience depended on whether or
not the takeover was contested," he said.
    Leigh-Pemberton noted there had been excesses in takeover
activity in the recent past. "The aim is to pressurise a
company's management into action dedicated solely to a
favourable impact on the share price in the short-term, partly
or even primarily at the expense of the future," he said.
    Such bids "often depend for their success on creating a
highly-charged and artificial situation in the share market,
and give rise to temptations, on both sides of the battle, to
engage in aggressive, even manipulative tactics that are
immensely damaging to the interest of the shareholders," he
said.
    In a clear reference recent events, he said "those in the
City who act for companies or individuals .. Must, I suggest,
be ready to accept a full measure of responsibility -- even if
it entails opprobrium -- for the transactions that may result."
    They "should exercise the most careful judgment at the
outset with respect to the clients for whom they act and the
activities contenplated. Those who sow wind cannot expect the
whirlwind to visit elsewhere," he added.


.I 9042
.C
crude
.W
ECUADOR TO ASK OPEC TO RAISE EXPORT QUOTA.
    CARACAS, March 12 - Ecuador will ask OPEC to raise its oil
export quota by 100,000 barrels per day to 310,000 to
compensate for lost output due to last week's earthquake,
deputy Energy Minister Fernando Santos Alvite said.
    Santos Alvite, who arrived in Caracas last night to discuss
an aid plan for Ecuador, did not say when the Organisation of
Petroleum Exporting Countries (OPEC) would be approached.
    The additional output would be related to plans now under
discussion for Venezuela and Mexico to lend Ecuador crude while
it repairs a pipeline damaged by the quake.
    Earlier, Venezuelan Energy and Mines Minister Aturo
Hernandez Grisanti said his country would supply an unspecified
part of Ecuador's export commitments.
    But Santos Alvite told reporters he hoped a first cargo of
300,000 barrels could leave Maracaibo this weekend to supply
refineries near Guayaquil. He added Ecuador also wanted to make
up for 50,000 bpd it shipped to Caribbean destinations. Mexico
might supply Ecuador's South Korean market.
    Ecuador may be unable to export oil for up to five months
due to extensive damage to a 25 mile stretch of pipeline
linking jungle oilfields to the Pacific port of Balao.


.I 9044
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 442 MLN STG HELP.
    LONDON, March 12 - The Bank of England said it provided the
market with a further 442 mln stg assistance during the morning
to offset a liquidity shortage it estimated at 1.60 billion
stg, revised up from 1.55 billion
    The bank bought outright eight mln stg of band one treasury
bills and five mln stg of band one bank bills at 10-3/8 pct.
    It bought a further 429 mln stg of bills for resale to the
discount houses on April 2 at an interest rate of 10-7/16 pct.
    So far today, the bank has given the market assistance
worth a total of 1.501 billion stg.


.I 9045
.C
earn
.W
JACOBS SUCHARD EXPECTS ANOTHER EXCELLENT YEAR.
    ZURICH, March 12 - Jacobs Suchard AG <JACZ.Z> hopes for
another excellent year in 1987 after a 27 pct increase in 1986
net profit. Results in the first few months show it heading in
the right direction, company president Klaus Jacobs said.
    The group reported 1986 net profit of 190.9 mln Swiss
francs compared with 150.4 mln in 1985 and raised its dividend
per bearer share to 160 francs from 155 francs.
    Jacobs said the increase in profit, which far exceeded the
company's target of five pct real annual growth, had been made
possible by restructuring measures introduced in January 1986
which had also made some major acquisitions possible last year.
    Hermann Pohl, general director in charge of economic
affairs, said the 2.7 pct decline in group turnover to 5.24
billion francs was due to currency factors.
    A 5.2 pct negative currency influence was partially offset
by growth in operations and by structural changes within the
group.
    Turnover in the coffee business fell to 3.10 billion francs
from 3.56 billion in 1985 while turnover in the chocolate
sector rose to 2.14 billion francs from 1.82 billion. The
tonnage sold in both sectors declined due to higher prices and
lower consumer demand, especially in France and West Germany.
    Jacobs Suchard increased its market share in West Germany
to 44.9 pct from 39.9 pct in 1985, largely as a result of
acquisitions. Market share in France was little changed at 25
pct against 25.3 pct.
    Pohl said the group's average tax rate rose to 32.5 pct
from 28.8 pct because of the higher profits and despite
write-offs on the losses of new acquisitions. A further
increase in tax levels was expected in future.
    Taxes jumped 51.3 pct to 92 mln francs in 1986 from 61 mln
the previous year.


.I 9046
.C
oilseed;grain;corn;soybean;rice;orange;
.W
JAPAN FIRM PLANS TO SELL U.S. FARMLAND TO JAPANESE.
    MORIOKA, Japan, March 12 - A Japanese real estate company
said it will launch a campaign to sell land in U.S. Farming
areas to rich Japanese.
    Higashi Nippon House said it would offer around 2,200 acres
of land in Illinois, California, Florida and Indiana from early
April to gauge response. It set up International Farm Corp of
America in Chicago last September to oversee the operation.
    American farmers would continue as working tenants and part
of the profits from harvests of rice, corn, soybean and oranges
would go to the Japanese investors as rental.
    Japanese Agriculture Ministry officials told Reuters sales
were limited to farmers to keep land in agricultural use.
    "Two years ago, I began to seek my own farmland in Japan,"
said Isao Nakamura, president of Higashi Nippon. "However, sale
of Japanese farmland is strictly controlled by the government,
so I began to look for the land in the U.S to make my dream to
own farm land come true."
    Nakamura said hundreds of companies exist in the U.S. To
sell farmland to investors as more and more farmers face
difficulties due to the recession in U.S. Agriculture.


.I 9048
.C
acq
.W
TAFT <TFB> REJECTS 145 DLR/SHR OFFER.
    CINCINNATI, Ohio, March 12 - Taft Broadacasting Co said its
board of directors unanimously decided not to accept the
pending buyout proposal of <Theta Corp>, an investor group led
by Dudley Taft.
    The decision was based on, among other things, the advice
of its financial advisors, Goldman Sachs and Co, that the offer
of 145 dlrs per share was inadequate.
    Taft said the board concluded that the offer failed to
recognize fully the future propsects of the company and
directed management to explore alternatives including possible
financial restructuring.


.I 9051
.C
palm-oil;veg-oil;
.W
PAKISTAN COULD IMPORT 100,000 TONNES OF PALM OIL.
    KARACHI, March 12 - Pakistan is likely to import 100,000
tonnes of refined, bleached and deodorised palm oil between
April and June this year, vegetable oil dealers said.
    They said the import would be financed by the Islamic
Development Bank (IDB) which signed an agreement with Pakistan
earlier this week in Jeddah, Saudi Arabia.
    Pakistan had imported 600,000 tonnes of edible oil since
the beginning of the current financial year last July, they
added. The palm oil would come from Malaysia or Indonesia.


.I 9052
.C
money-fx
.W
TREASURY SECRETARY BAKER DECLINES COMMENT ON G-6.
    NEW YORK, March 12 - U.S. Treasury Secretary James Baker
declined comment on the February 22 Paris accord between the
six major industrial nations under which they agreed to foster
exchange rate stability.
    Asked by reporters after a speech before the National
Fitness Foundation banquet what, if any, currency intervention
levels had been set in Paris, Baker replied: "We never talk
about intervention."
    Baker also declined to comment on his views about the
foreign exchange markets' reaction to the accord.


.I 9054
.C
earn
.W
BEL FUSE INC <BELF> 4TH QTR NET.
    JERSEY CITY, N.J., March 12 -
    Shr 22 cts vs 13 cts
    Net 1,063,000 vs 639,000
    Sales 7,489,000 vs 4,656,000
    Year
    Shr 55 cts vs 28 cts
    Net 2,633,000 vs 1,343,000
    Sales 23.3 mln vs 17.9 mln


.I 9055
.C
earn
.W
SOUTHWEST REALTY <SWL> YEAR LOSS.
    DALLAS, March 12 -
    Shr loss 44 cts vs profit 1.13 dlrs
    Net loss 1,544,000 vs profit 3,912,000
    NOTE: Cash flow 1,010,000 dlrs or 29 cts shr vs 2,835,000
dlrs or 82 cts shr.


.I 9056
.C
earn
.W
SOUTHWEST REALTY <SWL> HAS LIQUIDITY PROBLEMS.
    DALLAS, March 11 - Southwest Realty Ltd said it believes it
could make all of its scheduled montly debt service payments
for 1987 despite the falloff in its rental operations, but
making the payments would probably severely impair its
liquidity and restrict its ability to maintain the quality of
its properties.
    The company today reported a 1986 loss of 1,544,000 dlrs
compared with a 1985 profit of 3,912,000 dlrs.
    Southwest said in addition to its monthly scheduyled debt
service payments, a 1,743,000 dlr loan on one of its Houston
properties is due to mature on April One.
    Southwest said a commitment to reduce the interest rate and
extend the Houston loan for one year has been accepted.
    It said talks are underway with lenders on other Houston
properties to obtain partial debt service moratoriums which, if
granted, would cut 1987 cash deficits from 1986 levels.  The
loan renegotiations could involve bankruptcy or other
litigation connected with the specific properties involved and
could involve the suspension of interest and principal payments
to some of the lenders.  Southwest said if the attempts to
restructure debt do not succeed, it could lose one or more of
the properties.
    Southwest said the Houston properties made up about 10 pct
of its current value equity as of December 31 of 14.20 dlrs per
share, down from 16.68 dlrs a year before.
    The company said depending on the success of the talks and
operating results for 1987, one or two more properties could
become subject to similar negotiations.  The two additional
properties comprised about 11 pct of its current value equity
at year-end, Southwest said.


.I 9057
.C
earn
.W
D.H. HOLMES CO LTD <HLME> SETS PAYOUT.
    NEW ORLEANS, March 12 -
    Qtly div 12-1/2 cts vs 12-1/2 cts prior
    Pay April One
    Record March 20


.I 9058
.C
acq
.W
POPE EVANS <PER> REPURCHASES SHARES.
    NEW YORK, March 12 - Pope, Evans and Robbins Inc said it
has repurchased 780,000 common shares from Putnam Mills Corp
principals Sidney and Peter Kaplan for 2.25 dlrs per share.
    It said the purchase price will be applied against the
1,700,000 dlrs Putnam Mills currently owes Pope Evans for
merchandise.  Pope Evans has about 7.6 mln shares outstanding.
    The company also said it has agreed in principle to acquire
privately-held Pat Fashions Industries Inc for 18 mln dlrs in
cash and notes, with financing to come partly from bank
borrowings, subject to approval by the Pope Evans board and Pat
shareholders.
    Pat Fashions imports apparel from the Far East and makes
apparel domestically as well.  In the year ended November 30,
Pat earned 5,400,000 dlrs pretax on sales of 83.0 mln dlrs.


.I 9059
.C
acq
.W
BAIRD <BATM> GETS TEMPORARY RESTRAINING ORDER.
    BOSTON, March 12 - Baird Corp said the Massachusetts state
court for Suffolk county has granted it a temporary restraining
order prohibiting Mark IV Industries Inc <IV> from further
purchases of Baird stock until Mark IV complies with the
Massachusetts Anti-Takeover Statute.
    The company said Mark IV currently owns at least 17.6 pct
of Baird stock and has indicated that it may attempt to acquire
Baird.
    Baird said the U.S. District Court in Boston has denied
Mark IV's application for a temporary restraining order to
prevent enforcement of the Massachusetts takeover law.


.I 9060
.C
cocoa;coffee;
.W
JACOBS SUCHARD SEES 100,000 TONNE COCOA SURPLUS.
    ZURICH, March 12 - Jacobs Suchard AG expects a world cocoa
surplus of around 100,000 tonnes in 1987 compared with a
104,000 tonne surplus in 1986, Jens Sroka, head of commodity
buying, told a news conference.
    The company expects prices to remain at around current
levels despite the likelihood of agreement on buffer stock
rules at the forthcoming London cocoa talks, and believes
market intervention by the buffer stock manager would stabilise
prices.
    Sroka said world coffee prices are expected to remain weak
if any international coffee talks fail to produce agreement.
    Sroka said stagnating consumption and slight overproduction
will continue to weigh on coffee prices and he forecast a
continued build-up in stocks.
    The recent failure of the London coffee talks had surprised
market observers.
    Unless reason prevails and the major producers return to
the conference table, the world coffee market will remain free
and the consequences for some producers dependant on coffee for
their foreign exchange earnings would be catastrophic, Sroka
added.


.I 9061
.C
acq
.W
******DUDLEY TAFT AND NARRAGANSETT CAPITAL TO PURSUE TAFT BROADCASTING BID.
Blah blah blah.

.I 9062
.C
earn
.W
GENERAL MINING UNION CORP LTD (GENM.J) YEAR NET.
    JOHANNESBURG, March 12 -
    Shr 616 cts vs 481
    Final div 150 cts vs 140, making 230 vs 195
    Pre-tax 705.4 mln rand vs 485.2 mln
    Net 591.7 mln vs 458.0 mln
    Tax 79.2 mln vs 82.2 mln
    Attrib to outside shareholders 123.7 mln vs 52.3 mln


.I 9063
.C
retail
.W
******U.S. RETAIL SALES ROSE 4.1 PCT IN FEB, NON-AUTO SALES ROSE 1.5 PCT.
Blah blah blah.

.I 9065
.C
retail
.W
U.S. RETAIL SALES RISE 4.1 PCT IN FEBRUARY.
    WASHINGTON, March 12 - U.S. retail sales rose 4.77 billion
dlrs, or 4.1 pct, in February to a seasonally adjusted 122.29
billion dlrs, the Commerce Department said.
    The increase came after a revised 7.4 pct drop in January
sales to a level of 117.52 billion dlrs. The department
previously reported January retail sales fell 5.8 pct.
    Excluding autos, retail sales in February were up 1.5 pct
after falling by a revised 0.4 pct in January.
    Department spokesmen said the major cause for the revision
downward in January sales was a weaker January auto dealer
sales figure than originally estimated.
    Auto dealer sales were 26.91 billion dlrs in February, a
14.4 pct rise from January levels. But January sales dropped by
27.7 pct from December levels to 23.52 billion dlrs, more than
the 22.4 pct fall originally reported.
    The expiration of the sales tax deduction under new tax
laws on January 1 was the main reason for the drop in January
sales, department spokesmen said.
    Sales of durable goods rose in February by 8.8 pct to 46.72
billion dlrs after dropping by 17.7 pct in January.
    Building materials rose 1.8 pct in February after falling
by 1.7 pct in January.
    Non-durable goods sales rose by 1.3 pct to 75.58 billion
dlrs in February after falling by 0.2 pct in January, the
department said.
    General merchandise stores rose 1.4 pct after increasing
sales by 1.6 pct in January, and department stores were up two
pct in February after rising 1.5 pct in January.
    Food store sales increased 0.4 pct after declining by 1.0
pct in January, while grocery store sales increased 0.3 pct in
February after falling 0.6 pct in January.
    Gasoline service station sales rose 2.0 pct in February
after a 1.9 pct January increase.
    Apparel store sales were up 0.8 pct last month after
falling 3.0 pct in January, while sales at eating and drinking
places increased 1.5 pct after rising 0.5 pct in January.
    February's retail sales were 4.4 pct above the year-ago
level of 117.09 billion dlrs, the department said.


.I 9066
.C
acq
.W
DUDLEY TAFT TO PURSUE TAFT BROADCAST <TFB> BID.
    CINCINNATI, March 12 - Taft Broadcasting Co vice chairman
Dudley Taft and Narragansett Capital Inc <NARR> said they
intend to pursue their effort to acquire Taft Broadcasting
despite the rejection yesterday of their 145 dlr per share
offer by the Taft Broadcasting board.
    Dudley Taft and Narragansett, in a joint statement, said
they intend to explore alternatives to achieve the acquisition,
including further talks with Taft Broadcasting.
    They said they are confident that the Taft Broadcasting
board will conclude that the resolution of the company's
current "unstable situation" as quickly as possible is in the
best interests of all parties.
    They said the Taft board did not conclude that their offer
was not fair to Taft shareholders.  Taft Broadcasting
yesterday, however, said financial advisor Goldman, Sachs and
Co found the offer to be inadequate.


.I 9068
.C
earn
.W
HARPER GROUP <HARG> 4TH QTR NET.
    SAN FRANCISCO, March 12 -
    Shr 24 cts vs 31 cts
    Net 2,245,000 vs 2,885,000
    Revs 50.7 mln vs 46.5 mln
    Avg shrs 9,396,000 vs 9,270,000
    Year
    Oper shr 96 cts vs 99 cts
    Oper net 8,994,000 vs 9,220,000
    Revs 191.5 mln vs 174.7 mln
    Avg shrs 9,394,000 vs 9,282,000
    NOTE: 1985 year net excludes 1,360,000 dlr loss from
discontinued operations.
    Share adjusted for three-for-two stock split.    


.I 9069
.C
trade
.W
CANADA LEADERS FAIL TO SET PACT ON FREE TRADE.
    By Russell Blinch
    OTTAWA, March 12 - Prime Minister Brian Mulroney said he
held "frank" discussions with the Canadian province premiers on
the pace of free trade talks with the United States, but the
longstanding issue of provincial ratification remains to be
settled.
    Speaking to reporters after nearly five hours of meetings
with the 10 premiers, Mulroney said further discussions would
be held in June and September to discuss the role of the
provinces in approving any new trade deal.
    But he maintained progress was being made in the sweeping
talks with the Unites States that got under nearly two years
ago.
    "It appears reasonable progress is being made (in the
talks)," Mulroney said.
    Alberta Premier Don Getty agreed, "Things are running pretty
quickly now."
    The talks, launched by Mulroney's Progressive Conservative
government after concerns about protectionist sentiment in the
U.S., are aimed reducing the remaining barriers between the
world's largest trading partnership.
    But the provinces are expected to play a major role in any
new trading arrangement, and some of the provincial leaders
complained of a lack of progress on reaching a ratification
formula.
    "It's my view that we should be thinking about these things
right now, along with the questions of the substance of the
agreement," commented Ontario Premier David Peterson, who has
been highly critical of the talks in the past.
    But Newfoundland Premier Brian Peckford said an agreement
was more likely to emerge by consensus and there would be no
need for a "hard and fast formula."
    Peckford said it appears Canada is prepared to make
concessions to the United States on financial services in order
to make inroads on other bargaining areas, such as agriculture.
    Canadian published reports, quoting government sources, say
the two countries are close to reaching a trade deal and it
will involve eliminating border tariffs and many non-tariff
barriers over the next 10 to 12 years.
    A rough draft of the accord is expected to be presented to
the premiers at the June meeting while the finished document is
hoped to be presented to Congress in October.
    "It's a very tight time frame," Ontario's Peterson said last
night. "But at this moment it is tough to say what will
transpire."


.I 9070
.C
earn
.W
HEALTHSOUTH REHABILITATION CORP <HSRC> 4TH QTR.
    BIRMINGHAM, Ala., March 12 -
    Shr profit eight cts vs loss 10 cts
    Net profit 622,000 vs loss 564,000
    Revs 7,508,000 vs 1,913,000
    Year
    Shr profit 15 cts vs loss 28 cts
    Net profit 933,000 vs loss 1,548,000
    Revs 19.8 mln vs 4,799,000


.I 9071
.C
acq;trade;
.W
BALDRIGE OPPOSES JAPANESE PURCHASE OF FIRM.
    WASHINGTON, March 12 - Commerce Secretary Malcolm Baldrige
has asked the White House to consider blocking the planned
Japanese acquisition of a major U.S. supercomputer and
semiconductor manufacturer for national security reasons, U.S.
officials said.
    The officials, who asked not to be named, said yesterday
that Baldrige has "serious concerns" about the sale of Fairchild
Semiconductor Corp. to Fujitsu Ltd., another major electronics
firm.
    The officials told Reuters that if the sale went through it
could leave the U.S. military overly dependent on a foreign
/ompany for vital high technology equipment used in its
advanced missiles, aircraft electronics and intelligence
gathering.
    In addition, they said, the sale would also worsen the
already strained trade relations between the U.S. and Japan
stemming from the huge Japanese surplus.
    The White House Economic Policy Council would consider the
sale in the coming weeks, they said.
    Defense Secretary Caspar Weinberger's position was not
immediately known but in the past he has opposed the transfer
of high technology to foreign governments and companies.
    Supercomputers made by Fairchild and other U.S.
manufacturers are widely used throughout the world, but none
have been sold to the Japanese government or to Japanese
government-run agencies and universities.


.I 9072
.C
acq
.W
FIRST UNION <FUNC> ACQUISITION ADVANCES.
    JACKSONVILLE, Fla., March 12 - First Union Corp said
shareholders of First North Port Bancorp of Northport, Fla.,
have approved a merger into First Union for 40 dlrs per share,
or about 5,100,000 dlrs.
    The company said the acquisition is still subject to
regulatory approvals and is expected to be completed during the
second quarter.


.I 9073
.C
earn
.W
SAND TECHNOLOGY <SNDCF> MULLING REVERSE SPLIT.
    By Solange De Santis
    Toronto, March 11 - Sand Technology Systems Inc said it is
considering a reverse stock split of at least one-for-10 and
expects to report a second-quarter profit, compared to a loss
last year.
    The stock consolidation "is something we're discussing, but
it's not definite," Sand Technology president Jerry Shattner
told Reuters in an interview.
    A private placement recently brought the number of
outstanding shares to 106 mln, up from 97.1 mln shares on July
31, 1986, the fiscal yearend.
    "The company has always had the aura of a penny stock,"
Shattner said, adding that Sand plans, at some time, to apply
for listing on the Montreal Stock Exchange.
    Shattner said the company expects to report a profit of
five pct, or about 350,000 dlrs, on sales of seven mln dlrs,
for the second quarter ended January 31. Results for the third
quarter should be about the same as the second, he added.
    Last year, Sand lost 243,064 dlrs on revenues of 7,012,195
dlrs in the second quarter.
    After "a disastrous first quarter," Sand hopes to break even
in the current fiscal year, Shattner said. The company has
scaled back its sales forecast to about 25 mln dlrs, from the
33.5 mln dlrs projected in December.
    The rapid appreciation of the Japanese yen against U.S. and
Canadian dollars last year led to Sand's loss of 2.1 mln dlrs,
or two cts per share, on sales of 24.9 mln dlrs.
    In the first fiscal quarter this year, the company lost
1,350,387 dlrs, or one ct per share, on sales of 3,570,585
dlrs.
    Shattner believes the company will post better results this
year due to several factors.
    "Last year, one of our biggest problems was we were buying
products in Japanese yen. We now buy some products from Hitachi
in U.S. dollars and the results are starting to show up in the
second quarter," he said.
    Sand Technology sells, under its trademark, computer
accessories such as disk drives, solid-state memory enhancement
devices and printers manufactured by Hitachi Ltd <HIT> of
Japan.
    Shattner said Sand's affiliate in Detroit, ST Systems Inc,
is developing software that lets large maniframe computers
handle large databases and share them between applications.
    It is also distributing a new product called Sapiens, which
is artificial intelligence computer language for use by major
corporations.
    The company has also reduced costs through some staff
cutting and a switch to profit sharing plans for sales staff
instead of straight commissions, Shattner said.
    And Sand plans to market a laser printer in the fourth
fiscal quarter, Shattner said.


.I 9074
.C
acq
.W
<CONCORDE VENTURES INC> IN MERGER AGREEMENT.
    DENVER, March 12 - Concorde Ventures Inc said it has signed
a letter of intent to acquire Englewood, Colo., homebuilder
Winley Inc for 12 mln common shares.
    The investment company said after the merger the combined
company will have 15 mln shares outstanding.
    For the year ended January 31, Winley earned 116,000 dlrs
pretax on revenues of 11.7 mln dlrs.


.I 9075
.C
crude;nat-gas;
.W
DUNE RESOURCES <DNLAF> RESERVES ROSE IN 1986.
    OKLAHOMA CITY, March 11 - Dune Resources Ltd said its oil
reserves increased 225 pct during 1986 while its natural gas
reserves were up six pct.
    The company said its proven oil reserves were estimated at
605,682 barrels on December 31, up from 186,655 barrels a year
earlier boosted by discoveries during the year put at 423,659
barrels.
    It said gas reserves rose to 8.8 mln cubic feet from 8.3
mln on Dec 31, 1985, as discoveries of nearly 1.3 mln cubic
feet were partialy offset by production of 287,391 cubic feet
and downward revisions of previous estimates totaling 491,694
cubic feet.


.I 9077
.C
acq
.W
******BORG-WARNER TO SELL INDUSTRIAL PRODUCTS BUSINESS FOR ABOUT 240 MLN DLRS.
Blah blah blah.

.I 9078
.C
gnp
.W
JAPAN ECONOMY MAY BE NEAR BOTTOM, ECONOMISTS SAY.
    By Rich Miller, Reuters
    TOKYO, March 12 - The worst may be just about over for
Japan's battered economy but economists said they do not expect
a vigorous recovery anytime soon. Japanese bank economists
polled by Reuters said the economy's 18 month-old slowdown is
likely to end in the first half of this year, helped by rising
exports, stepped-up government spending and falling prices. "The
economy will bottom out in the middle of the year," said
Sumitomo Bank Ltd chief economist, Masahiko Koido.
    Industrial Bank of Japan Ltd senior economist Susumu
Taketomi agreed. "It (the bottom) is in the offing," he said.
    But he added that the recovery will be slow. Growth in the
fiscal year beginning next month will only pick-up 2.2 pct,
from two pct in the current year, he said.
    Signs that the economy has just about weathered the worst
are increasing.
    The volume of exports in the first two months of the year
rose slightly on a year-on-year basis, after declining toward
the end of last year.
    Although this may be due to extraordinary factors such as a
sharp rise in car exports to rebuild depleted European stocks,
several economists said it could mark the beginning of a
recovery.
    Industrial production fell 0.7 pct in January, much smaller
than expected, and is forecast by the government to rise 0.3
pct in February and 2.6 pct in March. A Bank of Japan survey
released last week showed that the decline in Japanese
corporate earnings may be nearing its end.
    And the Paris currency accord last month has fostered hopes
the rapid yen rise has come to the end, they said.
    Six nations - the U.K., Canada, France, Japan, the U.S. And
West Germany - pledged in Paris last month to stabilise
currencies around current levels.
    The yen's 40 pct climb against the dollar over the last two
years has hit the export-driven economy hard, by forcing its
companies to raise prices and lose sales in the U.S. Market.
    "The important thing is the exchange rate," Taketomi said.
    If it stabilises firms will grow more confident and raise
investment in plant and equipment, although there are no signs
of that yet, economists said.
    A stable yen would also help exporters regain some of their
competitive edge just as the U.S economy may be starting to
recover, economists said.
    Domestically, the economy may get a boost from some
loosening of the government's tight fiscal policy said Haruo
Muto, manager of national economics at the Bank of Tokyo Ltd.
    The next reading of the economy's health should come early
next week with the release of gnp figures for the last quarter,
1986.
    Most private economists expect a rise of about 0.5 pct from
the previous quarter. In the third quarter, GNP rose 0.6 pct.
    But a senior government official said the fourth quarter
figures could surprise by showing a rise of more than one point
quarter-on-quarter. But he added that would be a statistical
aberration and not a significant shift in economic activity.
    To maintain year-on-year growth of around 2.5 pct, the
economy would have had to rise about 1.2 pct in the fourth
quarter as the final quarter of 1985 was strong.
     The rise in the fourth quarter of 1985 was probably a
statistical anomaly that was repeated in the final months of
1986, the official said.
    Economists said the fourth quarter figures were also
distorted by the government's sale of gold coins in the second
half of 1986.
    Because the coins were classified as legal tender, their
purchase did not show up in the statistics on consumer
expenditure. Consumer spending also tailed off in December
because of bad weather and smaller-than-normal end-year
bonuses, they said.
    As the government had to buy back some of the coins from
retailers because they were unsold, the government's
contribution to the economy in the fourth quarter may have been
boosted, economists said.
    Taketomi said it may have received a further boost from
government buying of farm products as the domestic crop last
year was good.
    The senior government official said the fourth quarter
performance of the domestic sector was probably worse than
generally expected, while that of the external sector was
better.


.I 9080
.C
acq
.W
QINTEX EXTENDS PRINCEVILLE <PVDC> OFFER.
    NEW YORK, March 12 - <Qintex America Ltd> said it is again
extending its offer of 13 dlrs a share for 3.3 mln Princeville
Development Corp shares until today from yesterday.
    As reported yesterday, Qintex said, about seven mln
Princeville shares had been tendered in response to the offer.
    Qintex said it is extending the offer to allow Princeville
to comply with federal law restricting the ownership of U.S.
airlines by non-U.S. citizens and to finalize the terms and
conditions of the letter of credit or bank guarantee required
under the previously announced acquisition agreement.
   


.I 9082
.C
earn
.W
CORRECTED-NETWORK VIDEO INC <NVID> 3RD QTR.
    SARASOTA, Fla., March 12 - Feb 28 end
    Shr five cts vs one ct
    Net 161,019 vs 50,745
    Revs 1,048,543 vs 478,700
    Avg shrs 3,217,500 vs 4,350,000
    Nine mths
    Shr 12 cts vs four cts
    Net 390,179 vs 169,275
    Revs 2,658,692 vs 1,478,066
    Avg shrs 3,217,500 vs 4,350,000
    NOTE: Corrects reversed figures in March 11 item.


.I 9083
.C
money-fx
.W
BANKERS OPPOSE STRICT TAIWAN CURRENCY CONTROLS.
    TAIPEI, March 12 - Taiwan imposed currency controls today
in what bankers called a desperate move to prevent speculation
as the Taiwan dollar appreciated against the U.S. currency.
    The strict controls will require proof that large
remittances to Taiwan are connected to commercial transactions
rather than currency speculation.
    Bankers attacked the controls as ineffective, saying they
were a panic reaction to pressure from Washington for faster
appreciation of the Taiwan currency against the U.S. dollar,
which would slow exports to the United States.
    Remittances exceeding one mln dlrs earned through exports,
shipping, insurance or bank lending will now need government
approval, along with remittances of more than 10,000 dlrs from
any other source.


.I 9084
.C
ship;crude;
.W
SAUDI SUPERTANKER REPORTED HIT BY IRAN OFF UAE.
    LONDON, March 12 - Iran attacked the Saudi Arabian
supertanker Arabian Sea off the United Arab Emirates last night
but the vessel was able to proceed after the incident, Lloyds
Shipping Intelligence reported.
    The 315,695-dwt Arabian Sea had set sail on Tuesday after
loading oil at the Saudi port of Ras Tannurah. Lloyds said the
attack occurred at about 2200 hrs local time (1800 GMT).


.I 9085
.C
trade
.W
TAIWAN TO RELAX IMPORT CURBS ON MORE GOODS.
    TAIPEI, March 12 - Taiwan will relax import controls on
more foreign goods, a government spokesman said today.
    The move was to allow greater access to Taiwan markets by
overseas trading partners, especially the United States, an
official of the Council for Economic Planning and Development
told Reuters.
    Import curbs on about 400 foreign goods, including
stationery and books, would soon be relaxed, he said.
    Taiwan announced it would ease curbs on some 600 farming
and industrial products last month.
    The official said the moves were intended to balance trade
between Taiwan and the United States and other trading
partners. Taiwan's trade surplus reached a record 15.6 billion
dlrs last year, up from 10.62 billion in 1985.


.I 9086
.C
retail
.W
U.K. RETAILERS SEE GROWTH IN CONSUMER SPENDING.
    LONDON, March 12 - U.K. Retailers expect consumer spending
to accelerate in March after a disappointing increase in
February, according to a monthly survey by the Confederation of
British Industry (CBI).
    Fifty-nine pct of the 325 retailers questioned for the
latest Distributive Trades Survey expected sales to be higher
in March than they were in March 1986, with only six pct
expecting lower sales.
    The chairman of the Distributive Trades Survey Panel, Nigel
Whittaker, said a favourable Budget next week would further
help sales during the summer.
    Figures released earlier this week showed retail sales in
January fell 2.2 pct, mainly due to exceptionally cold weather.
    "Sales did not recover in February as much as retailers had
expected, and they are now looking for better business in
March," today's survey said.
    It reported clothing stores were the most optimistic, with
80 pct expecting sales in March to be higher than a year ago.
    Wholesalers also expected stronger sales in March, while
both retailers and wholesalers reported slower growth in import
penetration, it said.


.I 9087
.C
crude
.W
MOST JAPAN FIRMS NOT RENEWING IRAN TERM CONTRACTS.
    By Jennie Kantyka, Reuters
    TOKYO, March 12 - Most Japanese companies have decided not
to renew term contracts to lift Iranian crude oil because spot
prices remain considerably lower than OPEC's official levels,
industry sources said.
    They said a cargo of the Mideast benchmark crude Dubai
traded yesterday at 16.50 dlrs a barrel, compared to its
official price of 17.42 dlrs.
    Only one Japanese company has renewed its term contract for
Iranian crude oil for the second quarter, the sources said.
    The sources said Japanese companies had been lifting a
total of about 185,000 barrels per day (bpd) of Iranian crude
under term contracts, but only one firm has agreed to lift in
the second quarter. It is lifting just 10,000 to 15,000 bpd.
    They said this move could inspire Iran to offer discounts
on cargoes loading in April, but the likelihood of discounts
depended largely on the levels of spot prices.
    "If the spot price of Dubai goes above 17.30 dlrs we would
probably buy Iranian crude at the official price," one Japanese
refiner said.
    "We don't intend to put pressure on them," he added.
    Buyers have little incentive to renew contracts to lift oil
at official OPEC prices while spot prices on all grades are
considerably lower, oil traders said.
    They said if spot prices move higher there will be no
problem finding OPEC crude to purchase at the official prices.
Qatar has chartered floating storage for its crude oil after
finding no buyers at official prices in March. The problem is
likely to recur in April, adding to that country's surplus.
    The traders added that Iraq had dissociated itself from
OPEC's December production agreement, while agreeing to the
fixed prices.
    But oil analysts said if OPEC keeps group output close to
its first-half 1987 ceiling of 15.8 mln bpd, supply and demand
would be balanced by the end of the second quarter.
    They also said if OPEC holds its official price structure
based on a reference price of 18 dlrs, spot price fluctuations
should be limited to a 16.50 to 17.20 dlrs range for Dubai and
a 17 to 18 dlrs range for the North Sea's Brent blend.
    One Japanese refiner said, "At the moment there's a lot of
pressure on OPEC, particularly on Qatar. But if they hold out
there will be no problem, and I'm beginning to trust their
ability."
    Nigerian oil minister and OPEC president Rilwanu Lukman
told a news conference in Lagos yesterday, "Nigeria and all
member countries of OPEC remain determined to uphold the
December agreement by adhering strictly to their various quotas
and official selling prices."
    He said OPEC believed consumers had drawn heavily on stocks
of both crude oil and refined products, reducing them to levels
well below this time last year. He said consumers would soon
return to the market in search of crude.
    A Japanese refiner said, "The European and U.S. Markets are
beginning to look better so OPEC might be quite lucky."

.I 9088
.C
earn
.W
POSSIS <POSS> VOTES 100 PCT STOCK DIVIDEND.
    MINNEAPOLIS, March 12 - Possis Corp said its board approved
a 100 pct stock dividend payable May One, record March 27.
    At the company's annual meeting Wednesday, Possis said
shareholders approved a proposal to increase the authorized
common shares to 20 mln from eight mln. The company currently
has about 3.9 mln shares outstanding.


.I 9089
.C
earn
.W
SEAL INC <SINC> 1ST QTR JAN 31 NET.
    NAUGATUCK, Conn., March 12 -
    Shr 29 cts vs 16 cts
    Net 610,000 vs 329,000
    Sales 6,714,000 vs 4,582,000


.I 9090
.C
earn
.W
DOW CHEMICAL CO <DOW> REGULAR DIVIDEND.
    MIDLAND, MICH., March 12 -
    Qtly div 50 cts vs 50 cts prior
    Pay April 30
    Record March 31


.I 9091
.C
earn
.W
TELCO <TELC> DELAYS DEFENSIVE RIGHTS OFFERING.
    NORWOOD, Mass., March 12 - Telco Systems Inc said its plan
to distribute a dividend of common stock purchase rights to
shareholders of record on March 16 has been delayed pending the
completion of necessary regulatory approvals.


.I 9095
.C
acq
.W
CLAYTON AND DUBILIER NEW JOINT UNIT TO BUY FIRM.
    NEW YORK, March 12 - Clayton and Dubilier Inc and senior
management of a unit of Borg-Warner Corp <BOR> said it will
form a new company to buy Borg-Warner's industrial products
group for about 240 mln dlrs.
    Borg-Warner industrial products has sales of about 300 mln
dlrs from three divisions, which provide advanced technology
fluid transfer and control equipment, systems and
services worldwide, Clayton said.
    The new company will have 3,000 employees and be
headquartered in Long Beach, Calif., the company said.
    Peter Valli, vice president of Borg-Warner Corp and
president of its industrial products division, will become
president and chief executive officer of the new company,
according to Clayton.
    Clayton, a private investment firm, said this was the third
mangement buyout of a divestiture completed by them since
December 1986.


.I 9097
.C
earn
.W
U.S. HEALTH INC <USHI> 2ND QTR JAN 31 NET.
    BALTIMORE, March 12 -
    Shr 10 cts vs seven cts
    Net 1,541,000 vs 1,056,000
    Revs 20.1 mln vs 17.0 mln
    1st half
    Shr 19 cts vs 11 cts
    Net 2,945,000 vs 1,742,000
    Revs 38.2 mln vs 35.2 mln


.I 9098
.C
earn
.W
******K MART CORP 4TH QTR  SHR 2.11 DLRS VS NINE CTS.
Blah blah blah.

.I 9101
.C
money-fx;interest;
.W
UK MONEY MARKET GIVEN FURTHER TWO MLN STG HELP.
    LONDON, March 12 - The Bank of England said it gave the
market further assistance of two mln stg during the afternoon,
buying that amount of band two bank bills at 10-5/16 pct.
    The bank has given the market assistance worth 1.503
billion stg today to offset a shortage it estimated at a
revised 1.60 billion.


.I 9102
.C
earn
.W
ENVIRONMENTAL SYSTEMS CO <ESC> 1ST QTR JAN 31.
    LITTLE ROCK, Ark., March 12 -
    Shr 13 cts vs 15 cts
    Net 2,193,000 vs 1,918,000
    Revs 18.2 mln vs 15.2 mln
    NOTE: Share after preferred dividends.


.I 9105
.C
earn
.W
GENERAL MINING (GENM.J) CAUTIONS ON 1987 PROFITS.
    JOHANNESBURG, March 12 - General Mining Union Corp Ltd
chairman Derek Keys cautioned that profits may not rise this
year if the rand stays at its current level of 48 U.S. Cents.
    "We would do well to repeat last year's results if the rand
stays depressed," Keys said.
    The level of the dividend, however, "ought not to be
affected," he added, discussing the 1987 outlook.
    General Mining earlier reported that 1986 per share
earnings rose 28 pct to 616 cts.


.I 9106
.C
earn
.W
COLGATE-PALMOLIVE CO <CL> SETS PAYOUT.
    NEW YORK, March 12 -
    Qtrly div 34 cts vs 34 cts
    Pay May 15
    Record April 24


.I 9107
.C
earn
.W
ISCO INC <ISKO> 2ND QTR ENDS JAN 30 NET.
    LINCOLN, Neb., March 12 -
    Shr 12 cts vs 13 cts
    Net 414,968 vs 449,533
    Revs 5,726,722 vs 5,276,627
    Six mths
    Shr 23 cts vs 33 cts
    Net 779,981 vs 1,116,857
    Revs 11.3 mln vs 11.3 mln


.I 9112
.C
veg-oil
.W
CCC REALLOCATES CREDIT GUARANTEES TO EL SALVADOR.
    WASHINGTON, March 12 - The Commodity Credit Corporation,
CCC, has reallocated two mln dlrs in credit gurantees
previously earmarked for sales of U.S. protein meals to cover
sales of vegetable oil and tallow to El Salvador, the U.S.
Agriculture Department said.
    The action reduces coverage for sales of protein meals to
14 mln dlrs from 16 mln dlrs and creates new lines of one mln
dlrs for tallow and/or greases and one mln dlrs for vegetable
oils, the department said.
    All sales under the credit guarantee lines must be
registered and exported by Sepember 30, 1987, it said.
    The guarantee rates include a charge to provide for a
yearly interest rate coverage of up to 4.5 pct on the
guaranteed value, the department said.


.I 9114
.C
acq
.W
BORG-WARNER <BOR> TO SELL UNIT FOR 240 MLN DLRS.
    CHICAGO, March 12 - Borg-Warner Corp said it agreed to sell
its industrial products group to <Clayton and Dubilier Inc>
and senior management of the group, for about 240 mln dlrs.
    Clayton and Dubilier is a New York-based private investment
firm, which has completed two other management-led buyout
transactions since December 1986.
    Borg-Warner's industrial products group, based in Long
Beach, California, has sales of about 300 mln dlrs and employs
about 3,000 staff.
    Its businesses include standard and custom engineered
centrifugal pumps and mechanical seals for the petroleum
industry and advanced controls for the aerospace and defense
industries.
    The sale is part of Borg-Warner's planned restructuring.
    the proposed sale is subject to approval by Borg-Warner's
directors, it said.


.I 9116
.C
ship;wheat;grain;
.W
PANAMANIAN WHEAT SHIP STILL GROUNDED OFF SYRIA.
    LONDON, March 12 - The Panamanian bulk carrier Juvena is
still aground outside Tartous, Syria, despite discharging 6,400
tons of its 39,000-ton cargo of wheat, and water has entered
the engine-room due to a crack in the vessel bottom, Lloyds
Shipping Intelligence Service said.
    The Juvena, 53,351 tonnes dw, ran aground outside Tartous
port basin breakwater on February 25 in heavy weather and rough
seas.


.I 9117
.C
acq
.W
GUARDIAN-MORTON SHULMAN AGREES TO TAKEOVER BID.
    TORONTO, March 12 - <Guardian-Morton Shulman Precious
Metals Inc> said Morton Shulman and Guardman Investment
Management Services Inc agreed in principle for Andrew Sarlos
to make a takeover bid for all special shares and series II
warrants of Guardian-Morton, subject to regulatory approval and
completion of definitive documentation.
    Guardman Investment, current manager and owner of all
common shares of Guardian-Morton, also agreed to sell the
common and its management agreement to a company controlled by
Sarlos if the takeover bid is successful, Guardian-Morton said.
    Price to be offered for the Guardian-Morton special shares
under the takeover bid will be 90 pct of the net asset value of
the special shares at the time of the bid, and two dlrs for
each series II warrant, the company said.
    Guardian-Morton said the takeover bid will be conditional
on Sarlos acquiring at least 90 pct of the special shares and
90 pct of the series II warrants, when combined the number of
special shares and warrants owned by the offeror at the time of
the bid.
    Investment companies managed by Sarlos currently own
slightly less than 10 pct of Guardian-Morton's special shares.


.I 9118
.C
earn
.W
K MART CORP <KM> 4TH QTR JAN 28 NET.
    TROY, MICH., March 12 -
    Shr 2.11 dlrs vs nine cts
    Net 285,000,000 vs 10,500,000
    Revs 7.35 billion vs 6.76 billion
    Avg shrs 134,300,000 vs 131,600,000
    Year
    Shr 4.35 dlrs vs 1.73 dlrs
    Net 582,300,000 vs 221,200,000
    Revs 24.13 billion vs 22.33 billion
    Avg shrs 134,300,000 vs 131,600,000
    NOTE: Latest year earnings include a loss in each period of
16.4 mln dlrs, or 12 cts a share, for a premium paid in the
early call of a 250 mln dlr 12.75 pct 30-year debenture
    Earnings include a gain from discontinued operations of
30.8 mln dlrs, or 23 cts a share vs a loss of 238.9 mln dlrs,
or 1.82 dlrs a share in the quarter and a gain of 28.4 mln
dlrs, or 21 cts a share vs a gain of 472.0 mln dlrs, or 3.64
dlrs a share for the year


.I 9119
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 12 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 290,000 to 310,000 head versus
309,000 week ago and 328,000 a year ago.
    Cattle slaughter is guesstimated at about 128,000 to
131,000 head versus 129,000 week ago and 127,000 a year ago.


.I 9122
.C
acq;ship;
.W
VAN OMMEREN ACQUIRES DUTCH GAS CONTAINER UNIT.
    ROTTERDAM, March 12 - Dutch shipping and transport group
PHS Van Ommeren NV <OMMN.AS> said it has taken over a small
Dutch gas container firm as a first step in establishing a
world-wide gas container organisation.
    The firm, Liquid and Gas Transport BV (LGT), employs 10
people and has a fleet of 200 gas containers.
    Van Ommeren will shortly open an office in Singapore and
expand its facilities in Houston to establish the gas container
network.


.I 9123
.C
earn
.W
DORCHESTER HUGOTON LTD <DHULZ> RAISES PAYOUT.
    DALLAS, March 12 -
    Qtly div 10 cts vs eight cts prior
    Pay April 16
    Record March 31


.I 9125
.C
acq
.W
INTERNATIONAL AMERICAN <HOME> SETS ACQUISITION.
    UNION, N.J., March 12 - International American Homes inc
said it has contracted to acquire <Diversified Shelter Group
Ltd> for about 11,850,000 dlrs to be paid 73 pct in cash and 27
pct in International American common stock to be valued on a 30
day trading average prior to closing.
    It said the price is based on Diversified's estimated 3.2
mln dlrs pro forma pre-tax earnings for 1986 after adjustment
for certain non-continuing expenses. Diversified, a developer
of single family housing in the Atlanta market, had 1986
revenues of about 25.3 mln dlrs. The acquisition if subject to
International American arranging financing.


.I 9128
.C
iron-steel
.W
EC COMMISSION HAS OPEN ATTITUDE ON STEEL QUOTAS.
    STRASBOURG, March 12 - The EC Commission said it was
adopting an "open attitude" about whether a system of production
quotas should remain for the indefinite future on heavy steel
products which account for about 45 pct of all EC steel goods.
    In a statement, the Commission reiterated its view that the
industry needs to lose between 25 and 30 mln tonnes of capacity
by 1990. It had previously said the quota system, started in
1980, should be wound up completely by the end of next year.
    The industry has argued for the maintenance of existing
quotas, which cover almost 70 pct of all output, saying almost
all steelmakers are losing money due to the depressed market.


.I 9129
.C
earn
.W
PRECISION AEROTECH INC <PAR> 3RD QTR JAN 31 NET.
    LA JOLLA, Calif., March 12 -
    Oper shr 16 cts vs two cts
    Oper net 467,000 vs 52,000
    Sales 8,954,000 vs 6,338,000
    Avg shrs 2,939,459 vs 1,979,916
    Nine mths
    Oper shr 45 cts vs 18 cts
    Oper net 1,068,000 vs 387,000
    Sales 24.5 mln vs 19.6 mln
    Avg shrs 2,299,764 vs 1,979,916
    NOTE: Current year net both periods excludes 176,000 dlr
gain from retirement of notes.
    Backlog 30.8 mln vs 26.7 mln at start of fiscal year.


.I 9131
.C
earn
.W
GUARDIAN NATIONAL INSURANCE CO LTD <GARJ J> YEAR.
    JOHANNESBURG, March 12 -
    Shr 100.6 cts vs 76.9 cts
    Final div 40 cts vs 32 making 58 cts vs 50
    Pre-tax 14.17 mln rand vs 8.85 mln
    Net 10.06 mln vs 7.69 mln
    Tax 4.10 mln vs 1.16 mln
    Gross premiums 210.16 mln vs 178.69 mln
    Net premiums written 143.99 mln vs 123.88 mln
    Underwriting loss 1.78 mln vs loss 6.25 mln
    Div pay April 10, register March 27.
    Note - period year to December 31 1986.


.I 9132
.C
earn
.W
DATAMETRICS CORP <DMCZ> 1ST QTR JAN 31 NET.
    CHATSWORTH, Calif., March 12 -
    Shr diluted five cts vs 13 cts
    Net 278,780 vs 442,532
    Revs 5,101,747 vs 4,293,393
    Avg shrs diluted 6,050,968 vs 3,414,145
    NOTE: Net includes tax credits of 123,500 dlrs vs 179,000
dlrs.


.I 9133
.C
earn
.W
WIENER ENTERPRISES INC <WPB> YEAR JAN 31 NET.
    HARAHAN, La., March 12 -
    Shr 60 cts vs 85 cts
    Qtly div 10 cts vs 10 cts prior
    Net 1,407,000 vs 1,996,000
    Sales 75.4 mln vs 58.2 mln
    NOTE: Dividend pay April 16, record April Nine


.I 9136
.C
earn
.W
K MART <KM> SAYS RECORD 1986 NET "TURNING POINT".
     TROY, Mich., March 12 - K Mart Corp said its record fiscal
1986 net earnings of 582.3 mln dlrs, a rise from 221.2 mln dlrs
a year ago, marked a "major turning point" for the world's
second biggest retailer.
    K Mart said the earnings rise for the fourth quarter ended
January 28 to 285 mln dlrs from 10.5 mln dlrs resulted from 
"merchandising, refurbishing and expense control."
    A year ago, K Mart took a charge of 239 mln dlrs for
discontinued operations. Earnings from continuing retail
operations in the quarter totalled 270 mln dlrs or 2.00 dlrs a
share compared with 249.4 mln dlrs or 1.91 dlrs a year ago.
    K Mart Chairman Bernard Fauber said "the success of these
programs is better illustrated by the strong 35.9 pct increase
in 1986 income from continuing operations before income taxes
to 1.03 billion dlrs, the first time K Mart Corp has reached
this milestone."
    Sales for the 1986 fiscal year reached a record 23.8
billion dlrs, an 8.1 pct rise from 22.04 billion dlrs the prior
year. K Mart said 1985 was restated to account for discontinued
operations. Comparable store sales rose 5.5 pct in 1986 over
1985, it said.
    Fauber said the sales growth came from greater consumer
acceptance of K Mart's apparel merchandise, "a marked increase
in hardline merchandise sales and a growing contribution from
specialty retailing operations."
    K Mart said its fourth quarter pre-tax income from
continuing operations was 493 mln dlrs, a 32.3 pct gain from
372.6 mln dlrs last year. It said sales in the period grew 8.8
pct to 7.23 billion dlrs from a restated 6.65 billion dlrs in
1985 with comparable store sales up 4.7 pct.
    K Mart said its effective tax rate rose in 1986 to 44.6 pct
from 37.6 pct in 1985. But it said selling, general and
administrative expense eased to 23.2 pct of sales from 23.7 pct
in 1985.
    "Our performance in 1986 marks a major turning point for K
Mart," Fauber said in a statement.
    "In the years immediately prior to 1986, we focused on
changing the look of our stores and the structure of the
company."
    K Mart, he said, committed billion of dollars for store
remodeling and installing a centralized point of sale system,
upgraded its merchandise mix, acquired three large specialty
retailers, divested underperforming businesses and restructured
its long-term debt.
    "We were forced to pay a temporary price in the form of
slower earnings growth and a lower rating by the investment
community. However, beginning with the fourth quarter of 1985,
our improved performance is proof that our approach is correct
for the long term," the K Mart chairman said.


.I 9140
.C
acq
.W
DAINIPPON INK TO INVEST IN QUIXOTE <QUIX>.
    CHICAGO, March 12 - Quixote Corp said Dainippon Ink and
Chemicals Inc of Japan will buy 526,315 shares of Quixote
common stock, a 6.7 pct stake, for 10 mln dlrs, or 19 dlrs a
share.
    It said the two companies also agreed to share the results
of their research and development activities in optical disc
technology.
    Dainippon Inc's optical disc technology focuses on the
development of a new Direct-Read-After-Write optical disc and
an advanced erasable optical disc.
    Quixote said its wholly owned subsidiary, LaserVideo Inc,
is making advancements in the art of mastering and
manufacturing Compact Discs, CD-ROMs and laser-read videodiscs.
    Quixote said the agreement with Dainippon, which has annual
sales of more than two billion dlrs, provides for a Dainippon
representative to sit on the LaserVideo board of directors.


.I 9141
.C
earn
.W
CIRCUIT CITY STORES INC <CC> SETS QUARTERLY.
    RICHMOND, Va., March 12 -
    Qtly div 1-1/2 cts vs 1-1/2 cts prior
    Pay April 15
    Record March 30


.I 9142
.C
acq
.W
KNOLL TO BUY AMERICAN SAVINGS <AAA> SHARES.
    MIAMI, March 12 - American Savings and Loan Association of
Florida said <Knoll International Holdings Inc> has offered to
purchase 500,000 new shares of American Savings for 10 mln
dlrs, and the board has accepted Knoll's offer.
    Knoll already owns 796,413 shares or 9.9 pct of American
Savings.
    American Savings said the purchase will resolve a
previously-announced disagreement between American Savings and
the Federal Home Loan Bank of Atlanta on the replacement of the
capital American Savings used to repurchase common shares in
January 1985 from former chairman Marvin L. Warner.
    It said completion of the transaction would give Knoll 15
pct ownership in American Savings.
    American Savings said Knoll also had talks with chairman of
the executive committee Shepard Broad and chairman Morris Broad
on the purchase of their American Savings shares as well at 20
dlrs each but no agreement was reached.
    American Savings said The company said Knoll's offer to buy
the new shares is not conditioned on other purchase of common
stock from any person or entity.
    It said its previously-announced engagement of Salomon Inc
<SB> to evaluate alternatives to enhance shareholder values,
including the possible sale of American Savings, is still being
actively pursued.


.I 9144
.C
cotton
.W
IGENE BIOTECHNOLOGY <IGNE> FINDS CROP LOSS AID.
    COLUMBIA, Md., March 12 - IGENE Biotechnology Inc said its
research teams at Auburn and Hebrew universities have found its
patented pesticide is highly effective in combating a disease
reponsible for approximately three billion dlrs in annual crop
losses.
    The company said it learned ClandoSan controls nematodes,
deadly plant pathogens formerly controlled by now-banned
synthetic chemicals.
    Varieties of the deadly disease attack major cash crops
such as cotton, vegetables, orchard trees, citrus fruits, and
garden plants, the company said.


.I 9145
.C
earn;crude;nat-gas;
.W
PHILLIPS <P> TO EMPHASIZE CASH FLOW TO PARE DEBT.
    By Ted D'Afflisio, Reuters
    NEW YORK, March 12 - Phillips Petroleum Co will emphasize
improving its short-term cash flow this year to pare its debt,
C.J. "Pete" Silas, chairman, told Reuters in an interview.
    "Our priority is to get cash flow increased from the assets
already installed," he said, but he declined to estimate annual
cash flow for 1987.
    Analysts estimate Phillips" cash flow at over one billion
dlrs for 1987, while long term debt, which resulted from
restructuring to find off corporate raiders in 1985, hovers
about 5.9 billion dlrs as of December 1986.
     Silas said Phillips hope to achieve its goal by raising
the capital expenditures budget to develop its oil and gas
properties.
    "We plan to develop the properties with short-term high cash
flow prospects," he said. He projected a capital expenditure
budget of 730 mln dlrs, up from the 1986 expenditure of 655 mln
dlrs.
    Nearly half of that will be spent on exploration and
production, and most of that will be spend overseas, Silas
said.
    "Phillips' top priority in 1987 will be to get the
waterflooding in Norway and jack up the (Ekofisk) oil fields to
improve our ability to extract oil and increase earnings," Silas
said.
     Phillips estimates that the project, which is expected to
cost 1.5 billion dlrs, will increase recovery by 170 mln gross
barrels of oil over a period of 24 years.
    Phillips is also pursue opportunities in China where Silas
said he was seeking "a modification of terms with the Chinese
government to make oil discoveries (in the offshore Xijang
fields) commercially viable."
    In the U.S. Silas said Phillips hopes to get the Point
Arguello, Calif., field started up by the fourth quarter. "We
expect to start up the first platform then," Silas said.
    But emphasis on short-term cash flow has also forced the
company to part with several oil and gas assets.
    Phillips sold its interests in the T-Block in the U.K.
North Sea and U.S. reserves totaling about 1.3 billion dlrs in
1986 as part of a two billion dlrs asset sales program that is
now completed, Silas said.
     "We sold high cost producing assets. They were not good
value for us but possibly so for someone else," Silas said.
    Silas said the 1986 assets sales will not affect earnings
for the company.
    "Everything we are doing is to manage our cash flow and we
are using that to manage our debt. Even the asset sales, while
regrettable, were necessary to reduce debt," Silas said.
    He said no asset sales are planned this year as long as oil
prices don't fall sharply lower and stay at lower levels  for
several months. "Then, everyone would be looking at sales (of
assets), and we're no different from the others," Silas said.
    In other areas, Silas looks for improved earnings from
Phillips chemical operations, which provided 299 mln dlrs in
earnings for 1986, up from 219 mln dlrs in 1985.
    "This was our second best year pushed by a good supply and
demand balance for products, low feedstocks and energy costs
for our operations," Silas said, "In 1987 we think the market's
supply and demand balance will be just as good but feedstock
and energy costs will rise due to price recovery."


.I 9146
.C
acq
.W
MERRILL LYNCH<MER> CANADA MULLS BUYING BROKER.
    TORONTO, March 12 - Merrill Lynch Canada Inc, wholly owned
by Merrill Lynch and Co, is considering acquiring another
Canadian securities company as the result of federal and
provincial government moves to lift investment dealer ownership
restrictions on June 30, according to a published report.
    "We're talking to a number of people," Merrill Lynch Canada
deputy chairman E. Duff Scott told The Toronto Star. "Whether
we're going to do something, I don't know," he said.
    A Merrill Lynch Canada spokesman declined to comment on the
newspaper report when queried.
    Scott did not disclose which investment dealers Merrill
Lynch Canada was considering acquiring, but the Toronto Star
quoted unidentified industry sources as saying serious
discussions have already been held with Burns Fry Ltd.
    Burns Fry chairman Jack Lawrence told the newspaper the
investment dealer has not made a final decision, but was
examining "three or four alternatives."
    Discussions between brokers about possible mergers is to be
expected pending industry deregulation, one investment industry
source, who asked not to be named, told Reuters.
    "It's silly not to take a look (at making a merger or
acquisition). If you're a businessman, you have to take a look,"
the industry source said.
    Under federal and provincial government regulations
expected to be in place by June 30, banks, trust companies and
foreign companies will be allowed to acquire existing
investment dealers or establish their own securities
subsidiaries.


.I 9148
.C
acq
.W
MOST AMERICAN AGGREGATES <AMAG> STOCK ACQUIRED.
    NEWPORT BEACH, Calif., March 12 - <Consolidated Gold Fields
PLC>'s ARC America Corp subsidiary said it has acquired
7,521,643 American Aggregates Corp shares, about 95 pct of
those outstanding, as a result of its tender offer which
expired February 27.
    As soon as is practicable, ARC America will acquire
American Aggregates, converting the company's remaining shares
into the right to receive 30.625 dlrs a share.


.I 9150
.C
acq
.W
BIOTECH CAPITAL <BITC> TO BUY MAGAZINE.
    NEW YORK, March 12 - Biotech Capital Corp said it agreed to
buy High Technology magazine from the Goldhirsh Group of
Boston.
    Terms were not disclosed.
    The magazine publishes information about emerging
technologies and their impact on business. It has a circulation
of 200,000 and is the largest of its kind in the world, the
company said.


.I 9151
.C
trade
.W
PAKISTAN'S TRADE DEFICIT NARROWS IN FEBRUARY.
    KARACHI, March 12 - Pakistan's trade deficit narrowed to
2.64 billion rupees (provisional) in February 1987 from 2.85
billion (final) in January and compared with 2.94 billion in
February 1986, the Federal Bureau of Statistics figures show.
    Exports fell to 5.04 billion rupees (provisional) in
February from 5.34 billion (final) in January and compared with
3.90 billion in February 1986.
    Imports fell to 7.68 billion rupees (provisional) in
February from 8.19 billion (final) in January and compared with
6.84 billion in February 1986.


.I 9152
.C
earn
.W
CORRECTED-INSITUFORM OF NORTH AMERICA INC<INSUA>.
    MEMPHIS, Tenn., March 12 - 4th qtr
    Shr nine cts vs four cts
    Net 658,159 vs 299,930
    Revs 3,770,341 vs 2,614,224
    Avg shrs 7,382,802 vs 6,747,442
    Year
    Oper shr 33 cts vs 18 cts
    Oper net 2,287,179 vs 1,045,799
    Revs 13.1 mln vs 8,577,853
    Avg shrs 6,874,505 vs 5,951,612
    NOTE: 1985 year net excludes 13,000 dlr tax credit.
    Corrects March 11 item to exclude tax credit


.I 9153
.C
earn
.W
COLGATE-PALMOLIVE CO <CL> SETS QUARTERLY.
    NEW YORK, March 12 -
    Qtly div 34 cts vs 34 cts prior
    Pay May 15
    Record April 24


.I 9154
.C
earn
.W
CO-OPERATIVE BANCORP <COBK> RAISES QUARTERLY.
    CONCORD, Mass., March 12 -
    Qtly div 12-1/2 cts vs 10 cts prior
    Pay April 15
    Record March 31


.I 9158
.C
earn
.W
WILCOX AND GIBBS INC <WG> SETS PAYOUT.
    NEW YORK, March 12 -
    Semi div 7-1/2 cts vs 7-1/2 cts prior
    Pay April 30
    Record March 31


.I 9159
.C
crude
.W
SAUDI OUTPUT SAID AT YEAR LOW TO HELP OPEC.
    By Philip Shehadi, Reuters
    RIYADH, March 12 - Saudi Arabian oil output has fallen to
its lowest level in more than a year, giving fresh evidence of
the kingdom's determination to keep oil prices at 18 dlrs a
barrel, as agreed by Opec last December, oil industry sources
said.
    They said Saudi output in the first eight days of March
averaged 2.6 mln barrels per day (bpd) including oil from the
neutral zone shared with Kuwait, compared to a February average
of 3.5 mln bpd.
    They said Saudi Arabia was also selling oil from its crude
oil stocks in tankers around the world, which OPEC says must be
counted towards a member's production quota. Saudi Arabia's
quota is 4.133 mln bpd.
    The lower production levels indicated Saudi Arabia, the
world"s largest oil exporter, was insisting on getting Opec
official prices, even at the cost of lower production, the
sources said.
    King Fahd reiterated yesterday, in an interview with
Reuters and the television news agency Visnews, the Saudi
commitment to OPEC's December pact to boost oil prices to an
average 18 dlrs.
    "Saudi Arabia is completely sticking to OPEC decisions," he
said.
    The sources said the kingdom's exports from Gulf ports
averaged one mln bpd during the eight days ending last Sunday,
down from a February average of 1.9 mln bpd.
    They said Saudi Arabia was allowing production to fluctuate
with lifting nominations and was not trying to maintain
artificially high levels by putting oil into storage.
    The kingdom's main buyers, the four U.S. Oil firms with
past stakes in the national oil company Aramco -- Mobil, Exxon,
Texaco and Chevron -- enjoy considerable flexibility in the
timing and volume of their liftings but are bound to pay
official prices, the sources said.
    Spot market prices have firmed in the past two weeks but
still remain below OPEC levels and major buyers have delayed
liftings in the hope they would improve, the sources said.
    They expected low early March output to pick up towards the
end of the month as buyers sought to fulfill their contractual
obligations.


.I 9162
.C
acq
.W
LEADER <LDCO> BUYS PETROSURANCE STAKE.
    COLUMBUS, Ohio, March 12 - Leader Development Corp said it
has purchased 300,000 shares of convertible preferred stock in
<Petrosurance Inc> for 1,500,000 dlrs in cash and real estate.
    Petrosurance specializes in property and casualty insurance
for the oil industry.
    Leader said the stock is convertible into a Petrosurance
common. Leader said it already owns 12.5 pct of Petrorusrance
and conversion would give it about 45.0 pct.
    The company said Petrosurance will use the sale proceeds to
support growth and improve the structure of its reinsurance
treaties to retain a larger part of premiums written.


.I 9166
.C
earn
.W
FEDERAL REALTY INVESTMENT TRUST <FRT> IN PAYOUT.
    BETHESDA, Md., March 12 -
    Qtly div 27 cts vs 27 cts prior
    Pay April 15
    Record March 25


.I 9168
.C
retail
.W
WHITE HOUSE WELCOMES RETAIL SALES FIGURES.
    WASHINGTON, March 12 - The White House welcomed the
February retail sales figures showing a 4.1 pct rise, following
a slow performance in January.
    Spokesman Marlin Fitzwater told reporters: "The February
sales growth was broad-based and good news for the economy."
    Commerce Department figures showed a larger than expected
rise following depressed levels of sales and factory orders in
January.


.I 9170
.C
earn
.W
BEAUTICONTROL COSMETICS INC <BUTI> 1ST QTR NET.
    DALLAS, March 12 - Qtr ends Feb 28
    Shr 10 cts vs 17 cts
    Net 411,275 vs 584,118
    Revs 4,977,818 vs 4,714,581


.I 9171
.C
earn
.W
OLD DOMINION SYSTEMS INC <ODSI> 1ST QTR JAN 31.
    GERMANTOWN, Md., March 12 -
    Shr loss 11 cts vs profit five cts
    Net loss 279,726 vs profit 76,591
    Revs 1,300,000 vs 2,200,000


.I 9172
.C
trade
.W
SWEDEN SETS OCTOBER DEADLINE FOR S.AFRICA BOYCOTT.
    STOCKHOLM, March 12 - Sweden announced its promised program
of unilateral economic sanctions against South Africa and gave
firms an October deadline to cut trading links.
    Foreign Trade Minister Anita Gradin said a trade boycott of
South Africa and neighbouring Namibia would take effect from
July 1, followed by a three-month period of grace to give
companies time to wind down their operations.
    From October 1, no direct trade would be allowed in either
direction, with certain exceptions covering medical supplies
and printed matter, Gradin told a news conference.
    She said exceptions would also be granted in cases where a
Swedish trade boycott would benefit South African firms and
disadvantage South Africa's black-ruled neighbours, the
front-line states.
    Gradin cautioned that legislation upon which the boycott
would be based was not impossible to get round. She said a
parliamentary committee would investigate ways of closing some
of the bigger loopholes, including indirect trade with South
Africa via Swedish subsidiaries in third countries.


.I 9174
.C
earn
.W
FIDELITY NATIONAL FINANCIAL INC <FNF> 1ST QTR.
    SCOTTSDALE, Ariz., March 12 - Jan 31 end
    Shr profit 49 cts vs loss not given
    Net profit 1,360,000 vs loss 241,000
    Revs 20.8 mln vs 14.3 mln
    Avg shrs 2,760,000 vs 1,970,000


.I 9179
.C
earn
.W
BRITISH TELECOM CAUTIOUS ON EARNINGS PROSPECTS.
    LONDON, March 12 - British Telecommunications Plc's <BTY.L>
profit growth prospects for the coming years will be reduced by
increasing competition and continued costs for replacing old
telephone systems, deputy chairman Graeme Odgers said.
    Speaking at a news conference on the third quarter results
which were released earlier today, Odgers said the company
faced heavy costs for installing new digital telephone systems
in Britain for three to five years.
    He said <Mercury Communications Ltd>, a Cable and Wireless
Plc <CAWL.L> subsidiary, was becoming a significant competitor.
    Odgers said Mercury was seeking to make inroads into some
of British Telecom's most profitable areas.
    One company official privately estimated that British
Telecom still had a 99 pct share of the U.K. Telecommunications
market but feared that this could slip to 95 or 90 pct.
    The recent two-and-a-half-week engineering strike, which
lead to some disruption in service, could well have encouraged
clients to consider using the Mercury system, Odgers said.
    However, he forecast that the last quarter's results
overall should not be adversely affected by the walkout.
    He calculated salary savings as a result of the strike at
50 mln stg and while loss of income on telephone calls should
be limited revenue probably dropped on peripheral activities.
    But on balance Odgers said that group's financial strength,
economies of scale and the fact that it operates in a growth
industry will help produce annual profit increases for the
forseeable future.
    British Telecom will also seek to expand into
manufacturing, he said, adding that research and development
expenditure will rise both in terms of value and compared with
the current proportion of two pct of overall turnover.
    Analysts said the company's downbeat forecasts helped
shares dip to 242p in mid-afternoon, down 4p from yesterday's
close and off an early high of 248p.
    Philip Augar of stockbrokers Wood Mackenzie and Co Ltd said
the market expects slower profit growth, but forecast a seven
to eight pct rise in both earnings per share and pretax profit
over the next two years. In the 1985/86 financial year, pre-tax
profit rose to 1.81 billion stg from 1.48 billion.
    Augar noted that a government-imposed formula linking
charges to inflation meant that the company's scope for raising
prices was limited as long as inflation remains low.


.I 9180
.C
coffee
.W
NO NEAR TERM BRAZIL COFFEE MOVES EXPECTED.
    By Richard Jarvie, Reuters
    RIO DE JANEIRO, March 12 - The Brazilian Coffee Institute,
IBC, is unlikely to disclose its future export policy until the
end of next week at the earliest, trade sources said.
    IBC president Jorio Dauster is meeting government
ministers, producers, exporters and market analysts to assess
Brazil's position in the light of the failure of talks in
London earlier this month to set new International Coffee
Organization, ICO, export quotas.
    "The failure of the talks means Brazil has got to rethink
its position completely," one Santos exporter said.
    A meeting of the National Coffee Policy Council is set for
Thursday, March 19, and Dauster will almost certainly explain
his plan to members then before announcing any new measures.
    Dauster told reporters on his return from London last week
that no decisions would be made on exports before he had held
talks with all sectors of the industry.
    Exporters said Dauster is not under any great pressure to
start marketing coffee immediately. World prices have been
recovering from the lows which followed the collapse of the ICO
talks and Brazil has sold a reasonable 5.5 mln bags of 60 kilos
for export in the first four months of this year.
    The exporters said the key factor in the eventual opening
of May and June export registrations will be the amount at
which the contribution quota is set.
    With little expectation of other sales incentive mechanisms
such as discounts, bonuses and price fall guarantees being
introduced, the level of the quota will be decisive in
determining the competitiveness of Brazilian coffee on world
markets, they said.
    They noted that on February 16, the eve of a planned
increase in the quota, April registrations were opened and
closed after 1.68 mln bags were registered for export, a record
amount for a single day.
    If May/June registrations are opened under similar
conditions as before, Brazil would have no difficulty in
selling at least 2.0 mln bags per month.
    "The problem would be how to limit sales," one exporter said.
    Brazil's present foreign trade and payments problems mean
there are pressures from the government to boost exports to
maximise foreign exchange earnings.
    However, the sources said they expect the IBC to adopt a
marketing strategy aimed at regaining Brazil's dominant
position as an exporter, but without causing a price war.
    General opinion among exporters was that Brazil would plan
to export between 17 and 18 mln bags this year of which between
1.5 and 2.0 mln would be to non-members of the ICO.
    The 15.5 mln to 16 mln bags sold to members would be around
the figure Brazil had offered to ship if ICO quotas were
reintroduced, although Dauster has said this offer expired with
the breakdown of talks.
    With the prospects of a crop of at least 28 mln bags this
year, Brazil has the capacity to export up to 20 mln bags after
meeting local consumption of around 7.0 mln, the sources added.
    However, the sources said Brazil is unlikely even to
consider exporting such quantities, as this would almost
inevitably lead to a fall in world prices as Brazil tried to
encroach on other producers' markets.
    Maximum export earnings would be achieved by orderly
marketing of traditional amounts, thus re-establishing Brazil's
market share after last year's unusually low exports of 9.9 mln
bags, enabling it to rebuild stocks and maintaining cordial
relations with the producer group which backed Brazil's stance
at the ICO talks, they added.


.I 9186
.C
earn
.W
TENNEY ENGINEERING INC <TNY> 4TH QTR NET.
    UNION, N.J., March 12 -
    Shr two cts vs nine cts
    Net 86,469 vs 325,937
    Revs 5,119,637 vs 6,390,995
    12 mths
    Shr 10 cts vs 33 cts
    Net 354,820 vs 1,148,476
    Revs 21.2 mln vs 23.2 mln


.I 9188
.C
money-fx;interest;
.W
FED NOT EXPECTED TO ADD RESERVES.
    NEW YORK, March 12 - The Federal Reserve is not expected to
intervene in the government securities market today, several
economists said.
    They said the Fed does not have a much of an adding need
this week and may wait until tomorrow or Monday before
supplying reserves.
    But a few economists said there was an outside chance that
the Fed may inject reserves indirectly via a small round of
customer repurchase agreements.
    Federal funds hovered at 6-1/8 pct this morning after
averaging 6.32 pct yesterday.


.I 9189
.C
earn
.W
MODERN CONTROLS INC <MOCON> 4TH QTR NET.
    MINNEAPOLIS, March 12 -
    Shr 10 cts vs 11 cts
    Net 226,000 vs 236,000
    Sales 1.3 mln vs 1.5 mln
    Year
    Shr 38 cts vs 45 cts
    Net 819,000 vs 1,001,000
    Sales 5.8 mln vs 6.4 mln


.I 9190
.C
acq
.W
INSTINET <INET> SETS MEETING ON MERGER.
    NEW YORK, March 12 - Instinet Corp said its board has
scheduled a special shareholders' meeting for May 21 to vote on
its proposed merger into Reuters Holdings PLC <RTRSY>.
    It said shareholders of record as of April 10 will be
eligible to vote at the meeting.
    Instinet said the meeting date is subject to adjustment,
based on the length of time needed for the U.S. Securities and
Exchange Commission to complete its review of the filing of
merger proxy materials, which Instinet expects to make before
the end of March.
    Instinet said the filing of the preliminary merger proxy
materials is tied to the finalization of audited financial
statements of Instinet and Reuters for 1986.
    Under a merger agreement entered into in November, Reuters
tendered for up to 5.10 mln Instinet common shares, or about 45
pct of those not already owned by Reuters. As a result of the
tender, Reuters now owns about 49 pct of Instinet shares.
    In the merger, holders of remaining Instinet shares will
receive 8.50 dlrs of Reuters American Depositary Shares for
each Instinet share.
    The ADS's will be valued at the average of their closing
prices in the 10 trading days before the effective date of the
merger.
    Instinet said it expects the merger to become effective as
soon as possible after shareholder approval at the special
meeting.


.I 9191
.C
wheat;grain;
.W
******EC GRANTS 5,000 TONNES SOFT WHEAT EXPORT  LICENCES AT 134.75 ECU REBATE - BRUSSELS TRADE.
Blah blah blah.

.I 9192
.C
earn
.W
******DAYTON HUDSON CORP 4TH QTR OPER SHR 1.24 DLRS VS 1.55 DLRS.
Blah blah blah.

.I 9193
.C
grain;barley;
.W
******EC GRANTS LICENCES FOR 35,000 TONNES  BARLEY AT 137.35 ECUS REBATE - BRUSSELS TRADE.
Blah blah blah.

.I 9194
.C
acq
.W
******UNION PACIFIC SAYS WILL SIGN PACT IN CARACAS ON MARCH 17 FOR SALE OF HALF ITS CORPUS CHRISTI REFINERY.
Blah blah blah.

.I 9195
.C
acq
.W
******CYACQ OFFERS TO RAISE CYCLOPS BUYOUT TO 92.50 DLRS/SHR FROM 80 DLRS.
Blah blah blah.

.I 9197
.C
acq
.W
******WASTE MANAGEMENT SAYS WAITING PERIOD ENDS ON ITS CHEMLAWN BID .
Blah blah blah.

.I 9198
.C
earn
.W
PETRIE STORES CORP <PST> REGULAR PAYOUT.
    SECAUCUS, N.J., March 12 -
    Qtrly div 17.5 cts vs 17.5 cts prior
    Pay April 20
    Record April 2


.I 9199
.C
earn
.W
UNILEVER FRAGRANCE UNIT HAS LOWER 1986 EARNINGS.
    NAARDEN, Netherlands, March 12 - The flavours and
fragrances firm <Naarden International N.V.>, acquired by
Anglo-Dutch food and detergents group Unilever Plc N.V. <UN.AS>
last year, said net profits for 1986 fell 11.4 pct to 19.5 mln
guilders.
    Naarden said earnings were hit by the fall in the value of
both the dollar and sterling, noting the figure was in line
with prior expectations. Net profit was 22.0 mln guilders in
1985.
    Earnings per share fell to 4.64 guilders from 5.48 in 1985
on turnover of 627.8 mln, down from 662.6 mln. Naarden set a
cash dividend of 1.80 guilders, unchanged from last year but
without last year's share option for payment.


.I 9201
.C
earn
.W
EAGLE-PITCHER INDUSTRIES INC <EPI> 1ST QTR NET.
    CINCINNATI, March 12 -
    Shr 81 cts vs 81 cts
    Net 8,750,024 vs 7,772,932
    Revs 157.6 mln vs 162.4 mln
    Avg shrs 10.8 mln vs 9.6 mln


.I 9202
.C
grain;corn;
.W
PORTUGAL GRAIN AGENCY BARRED FROM IMPORT TENDERS.
    By Pascal Fletcher, Reuters
    LISBON, March 12 - A Portuguese court has made a
preliminary ruling that the state grain buying agency EPAC
should not be allowed to take part in public import tenders
open to private importers, grain traders and officials said.
    Under the terms of Portugal's January 1986 accession to the
European Community, EC, a grain import monopoly held by EPAC
(Empresa Publica de Abastecimento de Cereais) is being reduced
by 20 pct annually until all imports are liberalised in 1990.
    Private traders protested last year that EPAC was being
permitted to take part in tenders open to them for the first
liberalised 20 pct share of the country's annual import needs.
The grain and oilseed importers association ACICO opened legal
proceedings to stop EPAC participating in the public tenders.
    Miguel Ascensao of ACICO told Reuters that Lisbon's civil
court, in a preliminary ruling, had decided EPAC should not be
allowed to take part in tenders open to private traders.
    Trade sources said the ruling, though effective
immediately, was subject to appeal and would have to be
confirmed in further proceedings.
    A member of the government Cereals Market Commission said
that, as a result of the court's decision, the Commission would
not be able to accept offers from EPAC in a public tender being
held today for the import of 80,000 tonnes of corn.
    Ascensao said the court ruling stated that EPAC's
participation in the public tenders violated the clauses of
Portugal's EC accession treaty dealing with the gradual
dismantling of the state agency's import monopoly.
    It also said the participation of EPAC, which still
controls the national grain storage and distribution network,
was unfair competition to the private traders.
    Traders said they believed the EC's Executive Commission
was unlikely to get involved in the dispute, preferring to
leave the case to be resolved as an internal Portuguese issue.
    "They (the EC Commission) will be keeping a low profile," one
trader said.
    ACICO says it is ready to take its case to Brussels if
necessary.


.I 9203
.C
earn;copper;
.W
MAGMA <MGCPV> SEES PROFITABLE COPPER PRODUCTION.
    NEW YORK, March 12 - Newmont Mining Corp <NEM> said Magma
Copper Co anticipates being able to produce copper at a profit
by 1991, assuming copper prices remain at their current levels.
    In an information statement distributed to Newmont
shareholders explaining the dividend of Magma shares declared
Tuesday, Newmont said Magma had a net loss of 46.6 mln dlrs in
1986, adding this was equal to 1.22 cts a share.
    Newmont holders will receive 80 pct of Magma's stock as a
dividend of one share for each of the 30,458,000 Newmont shares
now held. Newmont will retain 15 pct of the stock.
    The 1986 net loss was on a pro forma basis, Newmont said.
On a historical basis, it added, Magma had a 1986 net loss of
58.1 mln dlrs on a loss from operations of 42.3 mln dlrs.
    On Dec 31, 1986, Newmont said, Magma had about 85.0 mln
dlrs of net operating loss carryforwards expiring in 1999-2000
and about 4.0 mln dlrs of investment tax credit carryover
expiring in 2000-2001.
    Newmont said Magma has pre-tax losses of 290 mln dlrs
during the 1981 through 1985 period, noting the five major U.S.
primary copper producers reported aggregate pre-tax losses of
1.9 billion dlrs during five year period.
    Newmont said Magma had total sales of 347.3 mln dlrs last
year, including copper sales of 293.4 mln dlrs.
    It said the copper sales value was up from 267.6 mln dlrs
in 1985 reflecting a 10.1 pct increase in quantity sold to
212,000 short tons and a 0.4 pct decrease in price.


.I 9204
.C
earn
.W
RPT-INSITUFORM OF NORTH AMERICA INC <INSUA> NET.
    MEMPHIS, Tenn., March 12 - 4th qtr
    Shr nine cts vs four cts
    Net 658,159 vs 299,930
    Revs 3,770,341 vs 2,614,224
    Avg shrs 7,382,802 vs 6,747,442
    Year
    Oper shr 33 cts vs 18 cts
    Oper net 2,287,179 vs 1,045,799
    Revs 13.1 mln vs 8,577,853
    Avg shrs 6,874,505 vs 5,951,612
    NOTE: 1985 year net excludes 131,000 dlr tax credit.


.I 9205
.C
money-fx
.W
******FED SAYS IT SETS TWO BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.
Blah blah blah.

.I 9208
.C
retail
.W
U.S. RETAIL SALES RISE MASKS WEAK TREND - ANALYSTS.
    By Kathleen Hays, Reuters
    NEW YORK, March 12 - U.S. retail sales rose sharply in
February but many economists said the underlying consumer
spending trend remains weak.
    February retail sales jumped 4.1 pct, more than the 2.5-3.0
pct rise the financial markets had anticipated. But January's
sales were revised down to a 7.4 pct drop, from a previously
reported 5.8 pct decline.
    "The trend is toward continued spending but certainly at a
much more sluggish pace," said Don Maude of Midland Montagu
Capital Markets Inc.
    Maude averaged out the wide swings in the retail sales data
over past four months to show that the pace of consumer
spending is slowing.
    Combining the latest data with a 0.6 pct drop in November
and a 4.6 pct gain in December, the average retail sales gain
over the four months was 0.2 pct, he said, compared to to a 0.4
pct rise for year-over-year sales through February.
    "You can see a pattern developing," Maude said. "I wouldn't
be surprised to see a fall-off in March, especially since sales
probably won't be boosted by auto sales as they were in
February."
    Despite the weak underlying trend, economists were
impressed by a robust 1.5 pct gain in total sales excluding
autos in February. This compared to a revised 0.4 pct decline
in January, previously reported as a 0.1 pct decline.
    "The increase in non-auto sales was broadbased, with gains
in durable goods as well as non-durables," noted Ward McCarthy
of Merrill Lynch Capital Markets Inc. "It was a pretty healthy
report."
    He noted that building materials rose 1.8 pct in February
after falling 1.7 pct in January. General merchandise store
sales gained 1.4 pct after a 1.6 pct rise in January.
    "There are signs of life in the economy," McCarthy said.
"But it's jumping to conclusions to extrapolate this report
into the future." 
    A 0.7 pct increase in disposable personal income in January
which may be linked to the new tax laws probably helped boost
spending in February, he said.
    "A lot of people may be inadvertently under-withholding
taxes from their paychecks," he said. "When people in this
country get an increase in disposable income, the inclination
is to go out and spend it," he said.
    Economists said tomorrow's release of U.S. auto sales for
the first 10 days of March will be an important indicator of
how much this sector will add to first quarter spending.
     Auto sales accounted for the lion's share of total
February sales, rising 14.4 pct. This followed a 27.7 pct drop
in January, previously reported as a 22.4 pct fall, due largely
to the expiration of the sales tax deduction under new tax laws
January 1, the Commerce Department noted.
    Some economists argued that the because the gain in total
sales excluding autos also followed a decline in January, the
strength in the February report is less than impressive.
    "There is strength in the February data, but that's because
they were compared to low sales levels in January," said said
Beth Reiners of Dean Witter Reynolds Inc. "We don't see it as a
precursor of continued strength."
    Durable goods sales rose 8.8 pct in February, after falling
17.7 pct in January. February non-durable goods sales gained
1.3 pct, after declining 0.2 pct in January.
    Gasoline service station sales rose two pct in February,
following a 1.9 pct gain in January, but economists said higher
oil prices rather than an increased volume of gas sales
probably accounted for these gains.
    Reiners also emphasized that the trend in consumer spending
is weakening. Total retail sales on average were 123 billion
dlrs in the fourth quarter of 1986, she said. In January, they
fell to a seasonally adjusted 117.52 bilion dlrs, and in
February rose to 122.29 billion dlrs.
    "On average, it looks like they'll total 120 to 121 mln
dlrs in the first quartrer," she said. "We don't look at this
as indication that the economy is barrelling along."
    "The number is not really that problematic for those of us
who are constructive on the bond market," agreed Elliot Platt
of Donaldsen Lufkin and Jenrette Securities Corp.
    Platt does not foresee potential for tighter monetary
policy on the basis of the latest retail sales report.
    "The Fed is on hold now because the data have been so
confusing," he said.
    "Before the 337,000 gain in February non-farm payroll
employment, I would have looked for a discount rate cut in
March," he said. "But now Fed officials will have to wait for
the first quarter real U.S. gross national product data in
April to sort things out."


.I 9209
.C
wheat;grain;barley;corn;
.W
EC COMMISSION GRANTS EXPORT LICENCES - TRADE.
    BRUSSELS, March 12 - The European Community's, EC, cereal
management committee granted export licences for 5,000 tonnes
of quality soft bread-making wheat at a maximum export rebate
of 134.75 European currency units, Ecus, per tonne, traders
said.
    The committee also granted export certificates of 35,000
tonnes of barley at 137.35 Ecus per tonne, but rejected all
bids for the export of soft feed wheat, they said.
    Certificates were also granted for the export of 15,000
tonnes of maize at a maximum rebate of 132.90 Ecus per tonne,
the traders said.


.I 9210
.C
gnp
.W
GERMAN BANKS SAY UNCERTAINTY ABOUT ECONOMY GROWING.
    BONN, March 12 - Uncertainty is growing about the prospects
for the economy as orders for industry fall and companies scale
back investment plans, the German Savings Banks and Giro
Association said.
    Exporters expect foreign demand to remain weak, while
industry is less optimistic than it was, the association said
in a report.
    However, last month's agreement among the six leading
western industrialized countries to keep currencies around
present levels was expected to be a stabilizing influence for
exporters, it added.
    The banking association said the possibility of using
monetary policy to stimulate the economy should not be
overestimated.
    Another small drop in already low interest rates could not
be expected to cause any significant rise in purchases of
consumer or capital goods, it said.
    The Bundesbank's half-point cuts in the discount and
Lombard rates in January have largely exhausted the scope for
any further monetary moves, the association added.
    On Tuesday the Federal Statistics Office said gross
national product stagnated in real, seasonally and calendar
adjusted terms in the fourth quarter of 1986 compared with the
third quarter.
    The Economics Ministry, commenting on the figures, said GNP
in the 1987 first quarter was also expected to be relatively
weak.
    Bank economists have forecast the economy will either
stagnate or contract slightly in the first quarter. Official
first-quarter figures are due in early June.


.I 9211
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 12 - The Federal Reserve entered the U.S.
Government securities market to arrange two billion dlrs of
customer repurchase agreements, a spokeswoman said.
    Dealers said Federal funds were trading at 6-1/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 9214
.C
acq
.W
WAITING PERIOD ENDS ON WASTE MANAGEMENT<WMX> BID.
    OAK BROOK, Ill., March 12 - Waste Management Inc said it
received notice of early termination of the Hart-Scott-Rodino
waiting period for its 270 mln dlr takeover bid for Chemlawn
Corp <CHEM>.
    The waiting period was terminated March 11, Waste
Management said.
    Chemlawn has rejected Waste Management's 27 dlrs a share
bid. It has said it was talking with other parties about
selling its business.


.I 9215
.C
earn
.W
ASA LTD <ASA> 1ST QTR FEB 28 NET.
    CHATHAM, N.J., March 12 -
    Shr 1.42 dlrs vs 1.61 dlrs
    Net 13.6 mln vs 15.5 mln
    NOTE: Net asset value per share 77.72 dlrs vs 54.35 dlrs.


.I 9216
.C
acq
.W
INVESTORS TO RAISE CYCLOPS <CYL> TENDER PRICE.
    DAYTON, Ohio, March 12 - Cyacq Corp, an investor group
bidding for Cyclops Corp, said it would raise its outstanding
tender offer price for Cyclops common to 92.50 dlrs a share
from 80 dlrs, if certain conditions were met.
    The increased offer would exceed the 90.25 dlrs a share
price offered by Dixons Group PLC in a tender offer for Cyclops
that is part of a definitive agreement to acquire the
Pittsburgh-based maker of carbon tool and specialty steel
products.
    Cyacq includes Audio/Video Affiliates Inc and Citicorp
Capital Investors Ltd and other investors.
    Cyclops has about 4.1 mln shares outstanding.
    For the tender price to be raised, Cyclops must provide
Cyacq with all non-public information provided to Dixons Group
and Cyacq must be satisfied with financial projections made in
offering material by Dixons based on the information, Cyacq
said.
    Additionally, Dixon Group's rights to buy Cyclops common
and its rights to fees or expenses if the Dixon-Cyclop merger
agreement is broken must be rescinded, Cyacq said.
    Cyacq said financial projections it developed for Cyclops
were materially lower than the financial projections provided
by Cyclops to Dixons Group.
    A Cyclops spokeswoman said the company had no details of
the new Cyacq proposal and could not comment. "We have nothing
in hand," she said.
    In addition to making specialty metal products, Cyclops
also operates about 115 specialty stores that sell consumer
electronics products. The stores are located in 17 states
concentrated in the Northeast, Northwest and Southwest.
    Cyclops employs about 8,900 people in Pennsylvania, Ohio
and other states. It also has interests in non-residential
construction.
    In 1986, Cyclops earned 21.3 mln dlrs or 5.26 dlrs a share
on sales of 1.5 billion dlrs, compared to 1985 earnings of 26.2
mln dlrs or 6.20 dlrs on sales of 1.4 billion, the spokeswoman
said.
    The agreement with Dixons Group calls for Cyclops's steel
and construction businesses to be sold to a unit of Alleghany
Corp <Y> for about 110 mln dlrs once the merger is completed.
    A Cyacq spokesman said the new conditional tender price
would be all cash. He had no comment on whether Cyacq plans to
withdraw its current offer, which is scheduled to expire
midnight on March six.
    Dixon Group's offer extends to March 17.
   


.I 9217
.C
earn
.W
DAYTON HUDSON CORP<DH> 4TH QTR JAN 31 OPER NET.
    MINNEAPOLIS, March 12 -
    Oper shr 1.24 dlrs vs 1.55 dlrs
    Oper net 120,800,000 vs 150,100,000
    Revs 3.12 billion vs 2.74 billion
    Year
    Oper shr 2.62 dlrs vs 2.89 dlrs
    Oper net 255,000,000 vs 280,500,000
    Revs 9.26 billion vs 8.26 billion
    NOTE: 1986 period ended February One
    NOTE: Results exclude earnings from discontinued operations
of 9.0 mln dlrs, or nine cts a share vs 3.2 mln dlrs, or three
cts a share in the quarter and 2.1 mln dlrs, or two cts a share
vs 3.1 mln dlrs, or three cts a share for the year
    1987 earnings exclude gain on sale of B. Dalton Bookseller
of 85.2 mln dlrs, or 88 cts a share in each period
    1987 earnings exclude extraordinary charge from purchase
and redemption of debt of 12.6 mln dlrs, or 13 cts a share in
the quarter and 32.3 mln dlrs, or 33 cts a share for the year


.I 9218
.C
palm-oil;veg-oil;
.W
INDIA BUYS RBD PALM OLEIN AT TENDER.
    LONDON, March 12 - The Indian State Trading Corp bought
one, or possibly two, 6,000 tonne cargoes of Malaysian refined
bleached deodorised palm olein at its vegetable oil import
tender today for Mar 15/Apr 15 shipment at 355 dlrs per tonne
cif, traders said.


.I 9219
.C
jobs
.W
SPANISH UNEMPLOYMENT RISES IN FEBRUARY.
    MADRID, March 12 - The number of Spanish registered
unemployed rose by 15,608 to 2.98 mln or 21.5 pct of the
workforce in January in the sixth consecutive monthly increase,
the Labour Ministry said.
    Registered unemployed totalled 2.81 mln or 21.1 pct of the
workforce in February 1986.


.I 9220
.C
earn
.W
VSE CORP <VSEC> 4TH QTR NET.
    ALEXANDRIA, Va., March 12 -
    Shr 49 cts vs 39 cts
    Net 886,937 vs 892,323
    Revs 25.9 mln vs 23.7 mln
    Year
    Shr 1.78 dlr vs 1.34 dlr
    Net 3,254,301 vs 2,472,676
    Revs 100.6 mln vs 87.4 mln
    NOTE: 1986 4th qtr and year net includes income loss of
MetCap subsidiary of 14,881 dlrs and 311,848 dlrs or 17 cts per
share, respectively.
    1985 4th qtr and year net includes loss in MetCap unit of
108,598 dlrs and 298,412 dlrs or 16 cts per share,
respectively.


.I 9223
.C
acq
.W
SECURITY PACIFIC <SPC> BUYS ORBANCO <ORBN>.
    LOS ANGELES, March 12 - Security Pacific Corp said it
completed its previously announced acquisition of Orbanco
Financial Services Corp after receiving federal approval of the
deal.
    Security Pacific said the Federal Reserve Board approved on
Wednesday its purchase of the Portland, Ore.-based bank holding
company and financial services concern.
    The purchase of Orbanco, for about 47 mln dlrs in cash and
common stock, will be effective in 30 days, a Security Pacific
spokeswoman said.
    Terms call for each share of Orbanco common stock to be
exchanged for about 14 dlrs of Security Pacific common stock,
plus 1.50 dlrs cash.
    Each share of Orbanco's 100-dlr par value preferred stock
will be exchanged for 100 dlrs cash, plus accrued dividends.
    Orbanco, with one billion dlrs in assests, is the holding
company for the Oregon Bank, Orbanco Real Estate Service Co,
American Data Service Inc and Orbanco Securities Corp.
    Security Pacific now has four major regional bank purchases
outside California completed or pending.
    Security Pacific bought The Arizona Bank, with assets of
four billion dlrs, in the fourth quarter of 1986.
    Pending approval currently is the purchase of Rainier
Bancorporation <RBAN>, with assets of 9.2 billion dlrs. In
anticipation of legislative changes that take effect in 1989,
Security Pacific has also negotiated the future purchase of The
Nevada Bank, with assets of 615 mln dlrs.
    Security Pacific is the sixth largest U.S. bank holding
company, with assets of about 61.60 billion dlrs.


.I 9226
.C
earn
.W
DRANETZ TECHNOLOGIES INC <DRAN> YEAR DEC 31 NET.
    EDISON, N.J., March 12 - 
    Shr 46 cts vs 77 cts
    Qtly div six cts vs six cts prior
    Net 2,198,469 vs 3,635,565
    Revs 23.1 mln vs 26.0 mln
    Note: 1986 net includes one-time charge of 249,000 dlrs or
five cts a share from discontinuation of Boat Sentry and
Lakontek products.
    Qtly div payable April 15 to shareholders of record March
24.


.I 9227
.C
grain;rice;
.W
U.S. TO ASK FOR SHARE OF JAPAN'S RICE MARKET.
    WASHINGTON, March 12 - U.S. Agriculture Secretary Richard
Lyng said he will ask Japan to offer a share of its rice market
to U.S. exporters when he visits that country next month.
    In an interview with Reuters, Lyng also said the Reagan
administration will ask Tokyo to remove its quotas on U.S. beef
and citrus exports.
    Lyng, who plans to be in Japan April 14-27, said he will
not ask Tokyo to liberalize fully its rice market. "We will urge
that they consider sharing their rice market," he said.
    The USDA secretary would not say how big a share of the
Japanese rice market the U.S. would request. "We've got none of
it now. If we got one per cent of it, it would be a big
improvement," he said.
    Last year, the Reagan administration rejected a petition by
the U.S. rice industry seeking relief from Japanese import
restrictions.
    However, the U.S. said it would reexamine the issue if by
mid-1987 Japan did not roll back import barriers to U.S. rice
exports.
    Lyng said he would not be conducting formal negotiations
next month with Japan over their beef and citrus quotas, but
that his visit "may be a forerunner in a general way" to talks
prior to expiration of the bilateral agreement in March 1988.
    He said, however, that the U.S. "will ask for a definite
liberalization of those items (beef and citrus).... When you
translate 'liberalization' into Japanese, it means do away with
the quota."


.I 9228
.C
acq;crude;
.W
UNION PACIFIC <UNP> TO SELL PART OF REFINERY.
    NEW YORK, March 12 - Union Pacific Corp said it will sign a
pact in Caracas on March 17 with Petroleos De Venezuela, PDVSA,
to sell the state owned company half of its Corpus Christi,
Texas refinery owned by its Union Pacific's Champlin Petroleum
Co subsidiary.
    The sale will also include the related marketing and
distribution system for the refinery's products.
    A spokesman for the company said that a statement may be
issued later today giving details of the transaction.
    There was no immediate comment from PDVSA officials in New
York.
    The Corpus Christi refinery has a capacity of about 160,000
barrels per day, the Union Pacific spokesman said, and is a
largely upgraded facility but he would place no value on the
transaction.
    The additional acquisition of refinery and distribution
assets by PDVSA has been expected as Venezuela has been moving
aggressively to enhance its role in the oil industry from
producer to excpanding its presence in the downstream sector.
    Purchase of part of Champlin's operations also fits a
profile which PDVSA officials have said previously they looked
for in any acquisition.
    One PDVSA official said the company was looking for
independent oil companies with good refinery and distribution
network and a strong regional presence.
    The potential purchase of the interest in Champlin followed
its earlier acquisition of a part interest in Southland Corp's
<SLC> Citgo Petroleum Corp subsidiary.
    In that agreement signed September 15, 1986, PDVSA paid
Southland 290 mln dlrs for half of Citgo's stock.
    The potetnital acquisition of half Champlin's Corpus
Christi plant will also give Venezuela an additional outlet for
its crude oil production while giving the refiner an assured
source of supply, trade sources said.
    In the earlier deal with Southland, PDVSA agredd to to
supply Citgo with at least 130,000 bpd of crude oil and other
feedstocks.


.I 9231
.C
earn
.W
LANDS END INC <LEYS> YEAR JAN 31 NET.
    DODGEVILLE, Wis., March 12 -
    Shr 1.46 dlrs vs 1.13 dlrs
    Net 14,650,000 vs 11,270,000
    Sales 265 mln vs 227.1 mln
    Avg shrs 10,020,000 vs 9,980,000
    Note: Earnings are pro forma, including the increase in
common shares that took place last October when the company
went public through an initial offering of 1.4 mln shares. Avg
shrs assume the shares sold to public and employees were
outstanding during the entire period.


.I 9236
.C
acq
.W
BANCROFT <BCF> SUES ZICO.
    NEW YORK, March 12 - Zico INvestment Holdings INc said that
Bancroft Convertible Fund Inc filed suit seeking to enjoin
Zico's 30 dlr-a-share tender offer for 500,000 Bancroft shares.
    In its complaint, Bancroft said the tender offer materials
and letters to shareholders are false and misleading and that
the tender offer violates the investment company act of 1940.
    Zico said the suit is totally without merit and vigorously
intends to contest it.
    A motion is scheduled to be heard on March 16.


.I 9240
.C
earn
.W
SEABOARD CORP <SEB> 31 WEEK YEAR NET.
    NEWTON, Mass., March 12 -
    Shr 14.63 dlrs
    Net 21.8 mln
    Revs 252.9 mln
    NOTE: Company changed its reporting period to Dec 31 from
May 31. It said prior year comparisons were thus not
applicable.


.I 9241
.C
ship
.W
TURKISH SHIP HEADED FOR FLORIDA AFTER EXPLOSION.
    LONDON, March 12 - The Turkish ore/bulk/oil vessel Obo
Engin, 78,078 tonnes dwt, had an explosion in its boiler
yesterday, Lloyds shipping Intelligence Service reported.
    The vessel has retained some power and yesterday evening
was in position Lat. 25 57 N., Long. 75 06 W. It is diverting
to Jacksonville, Florida, with its cargo of 58,000 tons of
coal.
   The vessel was bound for Iskenderun, Turkey from Lake
Charles.


.I 9243
.C
earn
.W
REUTER INC <REUT> 4TH QTR.
    HOPKINS, Minn., March 12 -
    Shr 67 cts vs six cts
    Net 1.6 mln vs 131,630
    Revs 6.5 mln vs 4.5 mln
    Year
    Shr 85 cts vs 19 cts
    Net 2.0 mln vs 427,749
    Revs 25.1 mln vs 17.4 mln
    NOTE: 1986 net includes 1.4 mln dlrs in tax loss carryback.
Reuter Inc is a spindle maker. It is not connected with Reuters
Holdings PLC.
   


.I 9244
.C
earn
.W
CENTEL CORP <CNT> REGULAR PAYOUT SET.
    CHICAGO, March 12 -
    Qtly div 62-1/2 cts vs 62-1/2 cts previously
    Pay April 30
    Record April Seven


.I 9246
.C
crude
.W
MOBIL <MOB> TO RESTRUCTURE EXPLORATION UNIT.
    NEW YORK, March 12 - Mobil Oil Corp said it will
restructure its Dallas-based Mobil Exploration and Producing
Services Inc operations April one, to provide stronger
technological support to its U.S. and overseas operations.
    Mobil said the operation will consist of two new units,
Technical Services and Application Technology, along with the
existing Drilling and New Exploration Ventures groups. It said
R.C. Mills, president and general manager of its Exploration
and Producing Southeast Inc, has been named vice president and
general manager of the new operation reporting to P.J.
Hoenmans, president of its Exploration and Producing division.


.I 9250
.C
earn
.W
EQUITY OIL CO <EQTY> 4TH QTR LOSS.
    SALT LAKE CITY, March 12 -
    Shr loss nine cts vs profit 11 cts
    Net loss 1,102,592 vs profit 1,364,763
    Revs 2,836,508 vs 5,547,121
    Year
    Shr loss six cts vs profit 32 cts
    Net loss 789,300 vs profit 3,953,822
    Revs 11.7 mln vs 21.1 mln
    NOTE:  Per share figures reflect five pct stock dividend
paid December 1986.


.I 9251
.C
earn
.W
FN RESULTS HIT BY STRIKES, DOLLAR IN 1986.
    BRUSSELS, March 12 - Fabrique Nationale Herstal SA
<FNHB.BR> said it suffered a net loss of 2.99 billion francs
last year after being hit by strikes, the falling dollar and
declining oil prices.
    An FN statement said the loss, which compared with a 6.8
mln franc profit the previous year, included considerable
charges for restructuring in 1986 and 1987. Without these the
net loss would have been 1.45 billion francs, it said.
    It added that the restructuring plan would allow the firm
to return to long term profitability once it had been approved
by local authorities, banks and the workforce.


.I 9252
.C
acq
.W
MILLIPORE <MILI> ACQUIRES EQUITY IN PROTEIN.
    HUNTINGTON STATION, N.Y., March 12 - <Protein Databases
Inc> said Millipore Corp through its venture capital
subsidiary, Millicorp, acquired an equity position in the
company.
    Protein said it and Millipore intend to establish an
"interactive relationship."
    No other details were disclosed about the amount of
Millipore's investment in Protein.


.I 9253
.C
crude
.W
WILDLIFE UNIT PROPOSES ALASKA REFUGE OIL STUDY.
    WASHINGTON, March 12 - The National Wildlife Federation 
rejected an Interior Department draft plan to open wilderness
lands in Northern Alaska to oil and gas exploration.
    The federation, the nation's largest conservation group,
said further study was needed to assess any possible damage
that development might have on the wildlife in the area, the
coastal plain of the Arctic National Wildlife Refuge.
    Jay Hair, the federation's executive vice president, called
the Interior's research into the effects of development "so
fundamentally flawed that it provides little or no basis on
which to make a public policy decision."
    Hair called the department's proposal a "reflection of a
largely political decision," adding "we have no confidence in
Interior to represent the broad public interest in this area."
    Interior wants to open the 1.5 million acre coastal plain
to oil and gas exploration, but it said only with tough 
safeguards to protect the area's caribou and musk-oxen.
    It said a preliminary survey showed the region could hold
billions of barrels of oil and gas, and that its potential as
an energy resource would never be known without exploration.
    Interior said oil on the coastal plain could match the 10
billion barrels found at Prudhoe Bay, just west of the plain.
    Under existing law, Congress must agree to oil and gas
exploration, and if it does not act, the land will remain a
wildlife refuge protected from commercial development.
    Hair said Interior's report failed to stress the
probability that finding recoverable oil is only 19 pct.
    He said Interior's study also failed to weigh oil, gas,
fish and wildlife information the State of Alaska had gathered
nor had the department consulted the Environmental Protection
Agency on the possible effects of exploration.
    The federation, in letters to Congressmen, proposed that a
nine-member commission be set up to study all aspects of the
issue and report back to Congress in about two years.
    Hair said the federation was not opposed to the possible
exploration of oil, only that Interior's study was inadquate to
make a sound judgement.
    Congressional observers said that at present there was
little sentiment in Congress to open the wildlife area for
commercial exploitation dispite increasing concern that the
United States is becoming overly dependent on foreign oil.


.I 9254
.C
earn
.W
<GEMINI FOOD CORP> SIX MTHS JANUARY 31 NET.
    TORONTO, March 12 -
    Shr profit one ct vs loss one ct
    Net profit 150,594 vs loss 55,352
    Revs 19.0 mln vs 12.4 mln


.I 9256
.C
acq
.W
MERRILL LYNCH <MER> FIRES VASKEVITCH.
    NEW YORK, March 12 - Merrill Lynch and Co Inc fired the
head of the mergers department in its London office today,
saying he had been unable to provide a "satisfactory
explanation" in response to insider trading charges filed
yesterday by the Securities and Exchange Commission.
    Merrill had suspended the official, Nahum Vaskevitch,
yesterday saying at the time it was "disappointed and angry" if
the SEC charges are true.
    Merrill Lynch's statement at midday today said the firm
will continue to cooperatie fully with authoriteis in the U.S.
and London investigating Vaskevitch's activities.


.I 9257
.C
earn
.W
LINCOLN NATIONAL CORP <LNC> VOTES DIVIDEND.
    FORT WAYNE, IND., Marchg 12 -
    Qtly div 54 cts vs 54 cts prior qtr
    Pay 1 May
    Record 10 April


.I 9258
.C
ship
.W
ST LAWRENCE SEAWAY TO OPEN ON SCHEDULE.
    CHICAGO, March 12 - The St Lawrence Seaway and the Welland
Canal linking Lakes Erie and Ontario were expected to open as
scheduled on March 31 and April 1, respectively, a St Lawrence
Seaway official said.
    The entire Seaway is already free of ice due to the mild
Winter and could be open for navigation today, "but there
doesn't seem to be enough demand from shipping companies to
warrant an early opening," the Canadian official said.
    Repairs are continuing at a stepped up pace on the Welland
Canal and should be completed by the April 1 start-up date, she
added.


.I 9259
.C
earn
.W
LVI GROUP INC <LVI> 4TH QTR NET.
    NEW YORK, March 12 -
    Oper shr profit two cts vs loss 19 cts
    Oper net profit 523,000 vs loss 2.2 mln
    Revs 102.5 mln vs 39.9 mln
    12 mths
    Oper shr profit 11 cts vs loss 29 cts
    Oper net profit 2.2 mln vs loss 2.9 mln
    Revs 304.4 mln vs 50.3 mln
    NOTE: All 1986 and last two months of 1985 include results
of NICO Inc acquired Oct 1985.
    Prior year excludes discontinued operations loss of 14 cts
per share in the quarter and loss 18 cts a share in the year.
    1986 excludes extraordinary gain of two cts per share in
the quarter and four cts per share in the year.


.I 9260
.C
earn
.W
PROTOCOMDEVICES <PRCM> SEES MORE PROFIT EROSION.
    NEW YORK, March 12 - ProtocomDevices Inc said it has seen
more erosion of its general financial condition since December
31, and is actively engaged in negotiations to secure
additional financing. It also said it has undergone a
restructuring of its management and is instituting further
staff reductions.
    It said Ramon Morales has relinquished his role as
president and chief operating officer and assumed the position
of executive vice president in charge of international sales.
    It also said Rafael Collado has assumed the positions of
president and chief operating officer in addition to his role
as chief executive officer.
    For the year ended January 31, 1986, the company had a net
loss of 51,000 dlrs or 24 cts a share on revenues of 2.8 mln
dlrs.


.I 9262
.C
coffee
.W
ICO BOARD MEETING DELAYED ONE DAY.
    LONDON, March 12 - The International Coffee Organization
(ICO) executive board meeting scheduled for the end of this
month has been delayed by one day and will now run from March
31 to April 2 and not March 30 to April 1, ICO officials said.
    On March 30, the ICO ad hoc working group will meet to
consider management consultants Ernst & Whinney's report on the
ICO secretariat. This report was commissioned late last year to
report on the administrative structure of the ICO.


.I 9264
.C
earn
.W
PARADISE FRUIT CO INC <PARF> YEAR NET.
    PLANT CITY, Fla., March 12 -
    Shr 86 cts vs 99 cts
    Net 435,610 vs 497,160
    Sales 16.6 mln vs 17.7 mln
    NOTE: 1986 year net penalized 13 cts shr from loss of
investment tax credits.
  


.I 9266
.C
earn
.W
SAMSON ENERGY CO LIMITED PARTNERSHIP <SAM> YEAR.
    TULSA, Okla., March 12 -
    Net loss 14,144,000 vs loss 863,000
    Revs 10.3 mln vs 16.7 mln
    NOTES: 1986 loss includes write-down of 15.1 mln dlrs in
the carrying value of oil and gas properties taken in the first
quarter 
    Cash flow from operationswas 6,237,000 dlrs, or 3.01 dlrs
per unit, vs 9,315,000 dlrs, or 4.56 dlrs per unit


.I 9269
.C
wheat;grain;
.W
LYNG SAYS NO DECISION ON SOVIET EEP OFFER.
    WASHINGTON, March 12 - U.S. Agriculture Secretary Richard
Lyng said the Reagan administration had not decided on offering
the Soviet Union subsidized wheat but that such an offer had
not been ruled out.
    In an interview with Reuters, Lyng also said that he had no
knowledge of any upcoming discussion of the matter within the
cabinet.
    Asked if the administration had ruled out offering to
subsidize wheat exports to the Soviet Union under the
department's export enhancement program, Lyng said, "No. We
haven't made a decision on it, haven't even talked about it,
haven't even looked at it."
    Reminded that there have been reports that Moscow would buy
U.S. wheat if competitively priced, Lyng responded, "If they
(the Soviets) would offer to buy some wheat, would we accept
it? It would depend on what price they offered."
    Lyng added that he did not think the price of U.S. wheat
was far off the world price.
    Asked about persistent speculation that the administration
would offer Moscow a wheat subsidy, Lyng said, "Some people
think they're doing it to see if they can get a little spurt in
the market."
    Agriculture Undersecretary Daniel Amstutz last week asked
the Commodity Futures Trading Commission to investigate reports
that wheat prices were being manipulated by reports that a U.S.
wheat subsidy offer was imminent.


.I 9270
.C
earn
.W
ACCELERATION CORP <ACLE> 4TH QTR.
    DUBLIN, Ohio, March 12 -
    Shr 22 cts vs 19 cts
    Net 1.1 mln vs 994,000
    Year
    Shr 83 cts vs 60 cts
    Net 4.3 mln vs 3.1 mln
    NOTE:1985 net includes tax loss carryforward gain of 8,000
dlrs.
  


.I 9271
.C
earn
.W
<ENERGY OPTICS INC> 2ND QTR JAN 31 NET.
    LAS CRUCES, N.M., March 12 -
    Shr profit nil vs loss five cts
    Net profit 232 vs loss 124,380
    Revs 143,397 vs 61,901
    1st half
    Shr profit one ct vs loss 10 cts
    Net profit 15,722 vs loss 264,539
    Revs 354,843 vs 120,403


.I 9273
.C
acq
.W
BLUE GASS BREEDERS <BLGR> COMPLETES ACQUISITION.
    DENVER, March 12 - Blue Grass Breeders Inc said it has
completed the acquisition of Equine Enterprises Inc for four
mln common shares.
    It said it is obligated to deliver another 2,741,660 shares
on the attainment of a certain level of shareholders' equity
during any fiscal quarter within 12 months of closing.
    If all the contingent shares are issued, Blue Grass said
former owners of Equine will have a 75 pct interest in Blue
Grass.
    Equine is a New Mexico quarter horse breeding and racing
company.


.I 9274
.C
earn
.W
DIGIMED CORP 2ND QTR DEC 31 LOSS.
    MINNEAPOLIS, March 12 -
    Shr loss two cts vs loss five cts
    Net loss 17,334 vs loss 51,507
    Sales 245,560 vs 179,839
    Avg shrs 1,136,785 vs 1,046,785
    Six mths
    Shr profit four cts vs loss 17 cts
    Net profit 47,749 vs loss 174,373
    Sales 721,937 vs 284,809
    Avg shrs 1,136,785 vs 1,046,785


.I 9276
.C
earn
.W
FLIGHT INTERNATIONAL GROUP INC <FLTI> 3RD QTR.
    ATLANTA, March 12 - periods ended January 31
    Shr profit 22 cts vs loss 26 cts
    Net profit 439,000 vs loss 522,000
    Revs 5,600,000 vs 3,859,000
    Nine mths
    Shr profit 46 cts vs loss three cts
    Net profit 912,000 vs loss 59,000
    Revs 14.6 mln vs 18.3 mln
    NOTE: Year ago revenues include 400,000 dlrs in quarter and
2,227,000 dlrs in nine months from operations of subsidiary
sold in April 1986


.I 9277
.C
earn
.W
NORD EST PLANS 400 MLN FRANC BOND ISSUE.
    PARIS, March 12 - Financial and industrial holding company
Nord Est plans to make a convertible bond issue for a total of
400 mln francs, President Gustave Rambaud said.
    He told a news conference Nord-Est expected to receive
approval from the Bourse supervisory body COB in the next two
week, when terms would set according to market conditions.
    He said the issue was meant to boost capital ahead of new
investments.
    Rambaud said the company would pay a 1986 dividend of 5.25
francs, unchanged on 1985. Parent company net profit last year
rose to 99.5 mln francs against 71.1 mln in 1985.
    Provisional consolidated profits were lower at 185 mln
francs compared with 200 mln in 1985, of which 120 mln, against
147 mln, was attributable to the group. He said the lower
profit was mainly due to losses made by steel-tube maker
Vallourec, in which Nord Est has a 12.5 pct stake.
    Rambaud said he forecast a 1987 parent company net profit
before provisions of around 135 mln francs.


.I 9278
.C
crude
.W
SOLV-EX <SOLV> SHELL CANADA <SHC> PACT COMPLETE.
    ALBUQUERQUE, N.M., March 12 - Solv-Ex Corp said it
successfully completed its oil sands pilot testing program
under its agreement with Shell Canada Limited <SHC> and
received a 250,000 U.S. dlr bonus payment.
    It also said that Shell Canada exercised its option to take
over Solv-Ex's 25 pct working interest in the construction of
the oil facility, relieving it of its obligation to raise about
62.5 mln Canadian dlrs for plant construction.
    It said 30 pct of that loan was guaranteed by the
Government of Alberta.
    In exchange for Shell's participation, Solv-Ex said Shell
is obligated to pay it an up-front royalty and a running
royalty based on the operating profits of the oil sands
facility. It said the Shell Canada 7,500 barrel per day oil
sands project will be built on Shell's oil sand lease about 40
miles north of Fort McMurray in the Athabasca region of
northern Alberta.
    Solv-Ex said the project will cost about 260 mln Canadian
dlrs. It said that following a final feasibility study the
plant should open in the early 1990s when oil prices are
expected to exceed 20 U.S. dlrs per barrel.



.I 9279
.C
bop
.W
SPAIN HAS 68 MLN DLR JANUARY PAYMENTS SURPLUS.
    MADRID, March 12 - Spain had a 68 mln dlr current account
balance of payments surplus in January compared with a 556 mln
deficit in December and 370 mln surplus in January last year,
Bank of Spain figures show.
    The trade deficit rose to 664 mln dlrs in January from 146
mln in January 1986.


.I 9280
.C
acq;crude;
.W
UNION PACIFIC <UNP> IN PARTNERSHIP WITH PDVSA.
    NEW YORK, MARCH 12 - Union Pacific Corp said it will enter
a 50-50 partnership with Petroles de Venezuela, PDVSA, to own
and operate Union Pacific's 160,000 barrel-per-day Corpus
Christi, Texas, oil refinery.
    The assests to be acquired by the partnership are valued at
190 mln dlrs, Union Pacific said.
    Closing is expected to take place in early April and the
venture is to be called Champlin Refining Co.
    The partnership will acquire the refining and distribution
systems currently owned and operated by Champlin Petroleum, a
wholly owned subsidiary of Union Pacific.
    The venture will acquire the related inventories and the
Champlin trade name, the company said.
    PDVSA and Union Pacific will each contribute half the
capital required by the venture and arrange a revolving credit
facility with U.S. and foreign banks to finance inventories and
receivables, Union Pacific said.
    Petroles de Venezuela also signed a 25-year agreement to
supply at least 140,000 bpd of Venezulean crude oil and naphtha
to the refinery at market related prices.
    Under various options the in the agreement PDVSA could
supply another 50,000 bpd on similar terms, the company said.
    "This will provide a stable, long-term supply to the
refinery at competitive costs, thereby assuring the economic
viability of the plant," a statement issued by Union Pacific
said.
   The statement said the agreement with PDVSA will enable the
company to supply a steady flow of refined products to its
customers.
   Union Pacific said employees of the refinery would be
transfered to the new company and would retain the same
benefits as in the past.


.I 9282
.C
acq
.W
PUROLATOR <PCC> DIRECTOR QUITS OVER BUYOUT.
    WASHINGTON, March 12 - A Purolator Courier Corp director
resigned from the company's board, saying he plans to take
steps to make or find an offer that tops the 265 mln dlr buyout
deal already accepted by Purolator's board, the company said.
    The director, Doresy Gardner, resigned in a March 10 letter
to the Purolator board, which was included in a filing made by
the company to the Securities and Exchange Commission.
    Gardner noted that the terms of the merger agreement in
which the company would bought out by a group of its managers
and E.F. Hutton LBO Inc bar directors from taking action to
solicit, initiate or encourage acquisition proposals.
    "I, as a shareholder, wish to solicit, initiate or
encourage such an offer or indication of interest, and believe,
therefore, that I should resign as a director of the
corporation," Gardner said in the letter.
    "Accordingly, I hereby resign as a director of Purolator
Courier Corp, effective immediately," he said.
    Gardner said he believes shareholders could get a better
deal than the buyout offer if the company would agree to be
sold to some other entity, or if it could sell off all or part
of its U.S. courier division.
    On March 4, another Purolator shareholder, Rodney Shields,
filed a class action suit on behalf of the company's
shareholders charging the company and its board with breaching
their fiduciary duty by failing to take steps to ensure that
shareholders got the highest possible price in the buyout.
    The deal would give shareholders 35 dlrs a share in cash if
just 83 pct of Purolator's 7.6 mln shares are tendered. If more
are tendered, they would receive 29 dlrs in cash and six dlrs
in debentures and a warrant to buy stock in the new company in
exchange for each share.


.I 9283
.C
earn
.W
UNR INDUSTRIES INC <UNRIQ> 4TH QTR NET.
    CHICAGO, March 12 -
    Shr profit 75 cts vs profit 25 cts
    Net profit 2,742,962 vs profit 936,333
    Sales 74.9 mln vs 70.1 mln
    Year
    Shr profit 1.05 dlrs vs loss 1.07 dlrs
    Net profit 3,868,888 vs loss 3,931,580
    Sales 299.3 mln vs 281.1 mln


.I 9284
.C
acq
.W
CENTURY TELEPHONE <CTL> TO SELL PROPERTIES.
    MONROE, La., March 12 - Century Telephone Enterprises Inc
said it has accepted an offer to sell its cable television
properties in Michigan, Tennessee, Florida, Arkansas and
Louisiana for a "substantial" gain.
    The company said details were not disclosed.


.I 9285
.C
earn
.W
VOLT INFORMATION SCIENCES INC <VOLT> 1ST QTR.
    NEW YORK, March 12 -
    Shr 12 cts vs seven cts
    Net 817,000 vs 512,000
    Revs 107.5 mln vs 99.9 mln
    Avg 6.9 mln vs 7.2 mln
    NOTE: 1987 net includes 2.4 mln dlr pretax gain on
settlement, 743,000 dlrs gain on securities sale, interest
expense net of investment income of 2.2 mln dlrs and 920,000
dlrs in fiscal 1986. Change of European operations method
resulted in pre-tax translation losses of 1.1 mln dlrs in 1987.
Period ended January 30.


.I 9287
.C
earn
.W
PARADISE FRUIT <PARF> SETS LOWER DIVIDEND.
    PLANT CITY, Fla., March 12 - Paradise Fruit Co Inc said its
board declared a dividend of 25 cts per share, payable March 31
to holders of record March 19.
    The company last paid 50 cts per share in January 1986 and
before that paid 60 cts in January 1985.
    Paradise said commercial bank lending agreements it entered
into in June 1986 include retained earnings requirements that
limit the amount of earnings available for distribution to
shareholders.


.I 9289
.C
earn
.W
<CANADA MALTING CO LTD> YEAR NET.
    Toronto, March 12 -
    Oper shr 1.30 dlrs vs 1.51 dlrs
    Oper net 4.06 mln vs 4.17 mln
    Sales 146.3 mln vs 155.9 mln
    Note: 1985 excludes extraordinary loss of 7.45 mln dlrs, or
2.70 dlrs per share.


.I 9291
.C
earn
.W
NORTH AMERICAN HOLDING CORP <NAHL> 3RD QTR NET.
    EAST HARTFORD, Conn., March 12 - Dec 31 end
    Shr profit nil vs loss four cts
    Net profit 6,891 vs loss 590,460
    Revs 6,518,133 vs 2,521,884
    Avg shrs 13.1 mln vs 12.0 mln
    Nine mths
    Shr profit six cts vs loss seven cts
    Net profit 772,703 vs loss 758,620
    Revs 20.1 mln vs 7,599,017
    Avg shrs 13.2 mln vs 10.9 mln


.I 9293
.C
earn
.W
GENERAL HOST CORP <GH> SETS QUARTERLY.
    STAMFORD, Conn., March 12 -
    Qtly div six cts vs six cts prior
    Pay April Three
    Record March 23


.I 9295
.C
wheat;grain;corn;
.W
U.S.-SOVIET GRAIN ACCORD QUESTIONED BY LYNG.
    WASHINGTON, March 12 - U.S. Agriculture Secretary Richard
Lyng said he was not sure a long-term U.S.-Soviet grain
agreement would be worth extending when it expires next year.
    "It hasn't been worth much in the last two years....They
haven't lived up to the agreement as I see it," Lyng said in an
interview with Reuters.
    "It would be my thought that it's not worth any effort to
work out an agreement with someone who wants the agreement to
be a one-sided thing," he said.
    However, Lyng said he did not want to make a "definitive
commitment one way or another at this point."
    Under the accord covering 1983-88, the Soviets agreed to
buy at least nine mln tonnes of U.S. grain, including four mln
tonnes each of corn and wheat.
    Moscow bought 6.8 mln tonnes of corn and 153,000 tonnes of
wheat during the third agreement year, which ended last
September, and this year has bought one mln tonnes of corn.
    Lyng said he had no knowledge of how much U.S. grain Moscow
would buy this year.
    "I've seen people making comments on that and I don't know
how they know, unless they talk to the Soviets," he said. "I have
no knowledge, and I really don't think anyone other than the
Soviets have any knowledge."
    Lyng said he thought the Soviets bought U.S. corn last
month because "they needed it and because the price was right."
    "Our corn has been pretty reasonably priced. And I think
they've always found that our corn was good," he said.


.I 9297
.C
earn
.W
GROW GROUP INC <GRO> SETS QUARTERLY.
    NEW YORK, March 12 -
    Qtly div 7-1/2 cts vs 7-1/2 cts prior
    Pay April 30
    Record April 15


.I 9298
.C
earn
.W
DIGIMED CORP 2ND QTR DEC 31 LOSS.
    MINNEAPOLIS, March 12 -
    Shr loss 1.5 cts vs loss five cts
    Net loss 17,334 vs loss 51,507
    Sales 245,560 vs 179,839
    Six mths
    Shr profit four cts vs loss 17 cts
    Net profit 47,749 vs loss 174,373
    Sales 721,937 vs 284,809


.I 9299
.C
crude
.W
POWERINE REFINERY TO RESUME OPERATIONS.
    SANTA FE SPRINGS, CALIF, March 12 - <Powerine Oil Co> said
its refinery here will resume operation today, with initial
crude oil runs of 20,000 barrels per day.
    Powerine, a privately-held company, said it expects the
refinery to become fully operational by May, with crude oil
throughput at 35,000 bpd.
    Initial oil products deliveries are scheduled for Monday,
Powerine said. The refinery had been closed due to a change of
ownership, the company said.


.I 9300
.C
earn
.W
TRINITY INDUSTRIES INC <TRN> SETS QUARTERLY.
    DALLAS, March 12 -
    Qtly div 12-1/2 cts vs 12-1/2 cts prior
    Pay April 30
    Record April 15


.I 9301
.C
earn
.W
COASTAL BANCORP <CSBK> SETS QUARTERLY.
    PORTLAND, Maine, March 12 -
    Qtly div five cts vs five cts prior
    Pay April 15
    Record March 30


.I 9302
.C
earn
.W
IDAHO POWER CO <IDA> SETS QUARTERLY.
    BOISE, Idaho, March 12 -
    Qtly div 45 cts vs 45 cts prior
    Pay May 20
    Record April 24


.I 9305
.C
oilseed;soybean;
.W
U.S. SOYBEAN MARKETING LOAN NOT NEEDED - LYNG.
    WASHINGTON, March 12 - U.S. Agriculture Secretary Richard
Lyng said a marketing loan for soybeans would serve no present
purpose because the U.S. price is not above the world price.
    Asked in an interview if it was time to consider a
marketing loan for soybeans, Lyng said, "I don't think so. I
don't think the world price is lower than our price anyway."
    However, the USDA secretary said that if current conditions
of surplus production persisted, it might be appropriate to
consider a marketing loan.
    "I suppose that under that condition there is a danger our
exports will continue to drop and that the government will
continue to accumulate large stocks of soybeans," he said. "It
might be (worth contemplating a marketing loan), if there were
a world market that was lower than our market."


.I 9310
.C
earn
.W
UNITED STATIONERS INC <USTR> SETS DIVIDEND.
    DES PLAINES, Ill., March 12 -
    Qtly dividend six cts vs six cts
    Pay April 15
    Record March 31


.I 9311
.C
earn
.W
LINCOLN NATIONAL CORP <LNC> SETS QUARTERLY.
    FORT WAYNE, Ind., March 12 -
    Qtly div 54 cts vs 54 cts prior
    Pay May One
    Record April 10


.I 9312
.C
earn
.W
PETRIE STORES CORP <PST> SETS QUARTERLY.
    SECAUCUS, N.J., March 12 -
    Qtly div 17-1/2 cts vs 17-1/2 cts prior
    Pay April 20
    Record April 2.
o


.I 9314
.C
acq
.W
DESOTO <DSO> SELLS INDUSTRIAL CHEMICAL ASSETS.
    DES PLAINES, ILL., March 12 - DeSoto Inc said it sold the
plant, inventory and certain other assets of some of its
industrial chemical operations to Plastic Specialities and
Technologies Inc, a privately-held company headquartered in
Parsippany, New Jersey.  Terms were not disclosed.
    Desoto's industrial chemical operations are based in Fort
Worth, Texas, and has annual sales of about 17 mln dlrs.


.I 9317
.C
earn
.W
SAFEGUARD HEALTH <SFGD> 4TH QTR LOSS.
    ANAHEIM, Calif., March 12 -
    Shr loss 30 cts vs profit 12 cts
    Net loss 2,374,000 vs profit 970,000
    Revs 15.7 mln vs 13.4 mln
    Year
    Shr loss 13 cts vs profit 46 cts
    Net loss 1,054,000 vs profit 3,425,000
    Revs 61.8 mln vs 49.9 mln
    Note: Full name Safeguard Health Enterprises Inc.
    Current qtr and year figures include 2.9 mln dlr reserve
for estimated loss from proposed divestment of one-third of
existing 40 offices.


.I 9318
.C
rubber
.W
RUBBER TALKS CHAIRMAN CITES SLIGHT PROGRESS.
    GENEVA, March 12 - There has been slight progress towards
reaching a rubber pact, the chairman of a United Nations
conference on a new International Natural Rubber Agreeement,
INRA, Manaspas Xuto of Thailand, said.
    "There has been some slight progress but it is not the end
of the road yet," he said.
    The conference, which began Monday, is seen as the last
effort to adopt an accord to replace the current one which
expires in October. Some 40 producing and consuming countries
are taking part in the two-week meeting.
    Xuto said if the key outstanding issues are not resolved by
tomorrow he would hold weekend meetings.
    At the beginning of the conference, the fourth such meeting
in nearly two years, Xuto said it was imperative to settle
those issues this week so that technical drafting work can be
done next week.
    Conference sources said it is highly unlikely that
producers will accept a pact that will provide for any possible
downward adjustment of the floor price, as proposed by
consumers under certain circumstances.
    The sources said this means that any possible adjustment
would centre on the reference price, and the "may buy" (or "may
sell") and "must buy" (or "must sell") levels without changing the
"lower indicative price" (or floor price) of 150
Malaysian/Singapore cents a kilo in the present pact.
    The present five-day average of the indicator price is
around 192 Malaysian/Singapore cents.
    Consumers are seeking an adjustment of the reference price,
set in the current accord at 201.66 Malaysian/Singapore cents a
kilo, and of the "lower indicative price" if the buffer stock,
currently 360,000 tonnes, rises to 450,000 tonnes.
    Consumers want price reviews at 12-month intervals instead
of the 18 at present, and the price revision mechanism to
respond automatically to market trends.
    At present, if the market price has been above or below the
reference price for six months, the reference price is revised
by five pct or by an amount decided by the International
Natural Rubber Organisation council.
    Consumers say that, in these circumstances, the adjustment
be automatic at five pct or more.
    Producers have resisted reducing the role of the council in
the price adjustment procedure and have expressed concern that
changes proposed by consumers would weaken the present pact.


.I 9320
.C
gold
.W
"BRITANNIA" COIN TO SELL AT PREMIUM.
    LONDON, March 12 - The new British one ounce gold coin, the
"Britannia," will be priced on the basis of the gold price on the
day of purchase plus a "competitive premium," Treasury officials
said.
    Value added tax will be levied on all purchases by members
of the U.K. Public, as is currently the case with foreign
coins, although transactions between members of the London Gold
Market and all exports of the coins will be zero-rated. No
decision has yet been taken on the face value of the coins.
    Although a number of gold coins, especially the Canadian
Maple, have been issued elsewhere in an attempt to take the
place of the South African krugerrand, the British government
still feels that there is a gap in the market for a British one
ounce gold coin. The only British gold coin available at
present is the sovereign, which contains 0.2354 ounces of gold.
    Gold from South Africa or the Soviet Union will not be used
in the coin, officials said, adding that bullion would be
bought on the world gold market. But analysts said it would be
difficult to ascertain the origins of such purchases.
    No details are yet available on how many coins will be
issued or how much gold will be bought, but traders said that
the amounts involved would be unlikely to move the gold price.
    There were some enquiries on the "Britannia" from coin
dealers today, but value added tax would prove a major factor
in the success of the coin, with the 15 pct tax likely to put
off many investors, traders said.
    Some said that the "Britannia" had come too late, with the
Canadian Maple Leaf, the American Eagle and other gold coins
already well established.


.I 9321
.C
acq
.W
CYTRX <CYTR> UNIT BUYS SWEDISH COMPANY.
    ATLANTA, March 12 - CytRx Corp said its 60 pct owned CytRx
Biopool Ltd subsidiary has acquired Biopool AB of Umea, Sweden,
for undisclosed terms.
    It said former shareholders of Biopool AB own the remaining
40 pct in CytRx Biopool Ltd. Biopool AB develops cardiovascular
and fibrinolytic products for diagnostic applications.
    The company said CytRx Biopool is studying the possible
combination of CytRx Corp's RheothRx drug to reduce platelet
aggregation and viscosity in blood with Biopool AB's drug t-PA
for dissolving blood clots.


.I 9322
.C
interest
.W
******CANADA 91-DAY T-BILLS AVERAGE 7.03 PCT, MAKING BANK RATE 7.28 PCT.
Blah blah blah.

.I 9323
.C
earn
.W
NORTH AMERICAN <NAHL> SEES RECORD FOURTH QTR.
    EAST HARTFORD, Conn, March 12 - North American Holding Corp
said it expects to have record fourth quarter earnings and for
sales to exceed 10 mln dlrs.
    For the fourth quarter ended March 30, 1986 the company
reported net income of 631,720 dlrs on sales of 5.2 mln dlrs.
    It also said it expects revenues for the year to exceed 30
mln dlrs. For fiscal 1986, North American reported a net loss
of 126,900 dlrs on sales of 12.8 mln dlrs.


.I 9324
.C
acq
.W
INVESTORS UP INTERMEDICS <ITM> STAKE TO 16.8 PCT.
    WASHINGTON, March 12 - A group of investment firms told the
Securities and Exchange Commission they raised their stake in
Intermedics Inc to 1,721,900 shares, or 16.8 pct of the total
outstanding, from 1,565,900 shares, or 15.2 pct.
    Bessemer Securities Corp, a New York investment firm,
Cilluffo Associates L.P., a New York investment partnership,
and related entities said they bought 156,000 Intermedics
common shares between February 24 and March 9 for 1.4 mln dlrs.



.I 9325
.C
earn
.W
WAL-MART STORES INC <WMT> RAISES QUARTERLY.
    BENTONVILLE, Ark., March 12 -
    Qtly div six cts vs 4-1/4 cts prior
    Pay April 10
    Record March 23


.I 9332
.C
earn
.W
OPTROTECH LTD <OPTKF> YEAR NET.
    BILLERICA, Mass., March 12 -
    Shr 13 cts vs 50 cts
    Net 651,397 vs 2,602,120
    Revs 26.4 mln vs 21.6 mln
    NOTE: 1986 net includes gain 291,027 dlr gain from quantity
discount rebates on purchases of materials in prior years.


.I 9333
.C
earn
.W
NORTH ATLANTIC TECHNOLOGIES <NATT> 4TH QTR.
    MINNEAPOLIS, March 12 -
    Shr loss 20 cts vs loss 14 cts
    Net loss 352,000 vs loss 248,000
    Revs 285,000 vs 681,000
    Year
    Shr loss 92 cts vs loss 49 cts
    Net loss 1,613,000 vs loss 842,000
    Revs 1,523,000 vs 2,557,000
    NOTE: Full name is North Atlantic Technologies Inc


.I 9338
.C
crude
.W
MONTEDISON, OTHER REFINERIES TO SHUT FOR WORK.
    By JO WINTERBOTTOM, Reuters
    LONDON, March 12 - Selm-Societa Energia Montedison is to
close its Priolo crude refining units from March 15th to March
28th for maintenance, a company spokesman said.
    Throughput at the refinery is currently estimated at
140-150,000 bpd, although total capacity is nearer 200,000 bpd.
    Several other Mediterranean refineries are currently
shutdown for maintenance, most of which were scheduled some
months ago. But industry sources said that shutdowns may have
been rearranged to avoid running negative-netback crude.
     Tighter availabilities of products as a result of the 
shutdowns in the Med is helping to keep products markets
bullish, particularly for March deliveries, oil traders said.
    Garrone's refinery at San Quirico (capacity 130,000 bpd) is
due to shutdown on March 14th for three weeks, and the
jointly-owned ISAB/Garrone refinery at Mellili, capacity
220,000 bpd, is due to start up around March 20-25th following
its closure for maintenance a month ago, a company spokesman
said.
    The Esso Italiana refineries at Augusta and Siracusa will
not be closing this spring, a spokesman for the company said.
    In France, the distillation unit at Societe Francaise de
BP's Lavera refinery has been closed for maintenance since
March 2, and is due to restart early April. Total capacity is
181,900 bpd. It is currently operating at around 50 pct
capacity, a company spokesman said.
    Shell Francaise's Berre l'Etang refinery will shut down in
early April until mid-June, a company spokesman said. Capacity
is around 150,000 bpd. Compagnie Francaise de Raffinage (CFR)
will close the visbreaker at its La Mede refinery in early
April, but would not affect crude throughput at the refinery, a
company spokesman said. Current capacity is 136,000 bbl/day.
    Despite current bullish sentiment in the Med, however,
traders noted that crude netbacks are beginning to look more
attractive, and most maintenance shutdowns should be finished
in two to three weeks.
    As a result, oil industry sources suggest that the
situation may ease by mid-April.


.I 9342
.C
crude
.W
ATTACKS AFFECT COLOMBIA'S OIL OUTLOOK-ECOPETROL.
    BOGOTA, March 12 - Continuous rebel raids against oil
pipelines and foreign exploration camps endanger Colombia's
present oil bonanza, Franciso Chona, manager of the state-run
oil company Ecopetrol said.
    "It seems the subversion wants to end with our oil bonanza,"
he told reporters.
    He was speaking after a meeting with Defense Minister
Rafael Samudio, military chiefs and Mines and Energy Minister
Guillermo Perry to review the security situation in the light
of a recent upsurge of leftist guerrilla attacks in the
oil-rich Arauca region, bordering Venezuela.
    Ecopetrol chief of security, Retired General Carlos
Narvaez, said security measures would be stricter and that the
armed forces were closely collaborating but gave no details.
    Samudio said new plans had been designed and hoped they
would be effective. Samudio stressed that, despite the most
recent attacks, which cost more than four mln dlrs in damage,
the overall situation had improved compared with last December
when initial measures were taken to combat a wave of attacks.
    Repeated bombings of a vital pipeline from the Cano Limon
oilfield to the Caribbean then led to a loss of 51,000 barrels
of crude.


.I 9344
.C
copper
.W
PERU'S CENTROMIN SAYS NO COPPER FORCE MAJEURE.
    LIMA, March 12 - Peru's biggest state mining firm,
Centromin SA, said today there was no immediate force majeure
possibility on its copper shipments after guerrillas blew up a
railway line, interrupting train traffic from the Cobriza
copper mine to the Pacific coast.
    A Centromin spokesman said the managers of the mine at
Cobriza could always ship the the mineral by road to the coast
for export if the train line continued interrupted. Cobriza
produced the equivalent of around 40,600 fine tonnes of copper
last year.
    Maoist guerrillas using dynamite interrupted train traffic
two days ago when they blew up railway tracks and derailed a
train laden with minerals 225 km (135 miles) east of Lima at
Chacapalca, between the coast and Cobriza.
    An official at Minero Peru Comercial, Minpeco, Peru's state
minerals marketing firm, confirmed there had been no
declaration of force majeure on the shipments from Cobriza.
    Officials at National Train Company, Enafer, headquarters
in Lima, the Peruvian capital, declined to comment on when
train traffic would be restored to Cobriza.
    But an Enafer official, reached by telephone in the central
Andean city of Huancayo, near Chacapalca, said traffic could be
restored by Saturday.


.I 9346
.C
earn
.W
******PARKER DRILLING SUSPENDS QUARTERLY DIVIDEND.
Blah blah blah.

.I 9347
.C
acq
.W
******FIRST GRANITE BANCORP INC AGREES TO BE ACQUIRED BY MAGNA GROUP INC FOR STOCK.
Blah blah blah.

.I 9349
.C
veg-oil
.W
ARGENTINE VEGETABLE OILS SHIPMENTS IN JAN/NOV 1986.
    BUENOS AIRES, Mar 12 - Argentine Vegetable oils shipments
during January/November 1986 totalled 1,693,951 tonnes, against
1,469,208 tonnes in the same 1985 period, the Argentine grain
board said.
    The breakdown was: cotton 4,000 (27,900), sunflower 929,847
(816,727), linseed 113,827 (132,954), groundnutseed 26,248
(25,508), soybean 603,335 (448,344), tung 8,402 (10,633), olive
2,234 (3,465), maize 6,058 (3,677), rapeseed nil (nil), grape
nil (nil), the board added.
    Shipments during November 1986 amounted to 138,257 tonnes,
against 109,250 tonnes in the same month of 1985.
    The breakdwon was, in tonnes, cotton nil (nil), sunflower
27,715 (43,064), linseed 5,228 (4,473), groundnutseed 819
(3,647), soybean 104,314 (56,901), tung 20 (nil), olive 161
(858), maize nil (307), rapeseed nil (nil), grape nil (nil),
the board said.
    The ten principal destinations during January/November
1986, with comparative figures for the same 1985 period in
brackets, were, in tonnes:
    Holland 201,660 (204,391), Iran 182,042 (181,228), Soviet
Union 163,150 (266,389),Egypt 158,119 (159,350), Algeria
116,330 (11,492), Brazil 101,116 (59,430) , South Africa 94,700
(101,062) , Cuba 89,957 (98,740) , United States 80,109 (nil),
India 67,182 (17,403), the board added.


.I 9350
.C
earn
.W
PARKER DRILLING <PKD> SUSPENDS PAYOUT.
    TULSA, Okla., March 12 - Parker Drilling Co said its board
of directors voted to suspend the payment of dividends to
shareholders.
    Parker Drilling said it has been paying a quarterly
dividend of one ct a share of common stock.
    The company said it expects to save 1.3 mln dlrs a year
through the dividend suspension.


.I 9351
.C
earn
.W
EQK REALTY INVESTORS <EKR> 4TH QTR NET.
    BALA CYNWYD, Pa., March 12 -
    Shr nine cts vs 22 cts
    Net 700,000 vs 2,200,000
    Revs 5,400,000 vs 5,700,000
    Avg shrs 7,589,344 vs 10.1 mln
    12 mths
    Shr 43 cts
    Net 3,500,000
    Revs 21.6 mln
    NOTE: 12 mth figures not available for 1985 since company
started operations March 31, 1985.


.I 9352
.C
earn
.W
MASCO CORP <MAS> REGULAR DIVIDEND SET.
    TAYLOR, MICH., March 12 -
    Qtly div nine cts vs nine cts previously
    Pay May 11
    Record April 17


.I 9353
.C
earn
.W
EQK REALTY INVESTORS I <EKR> SETS PAYOUT.
    BALA CYNWYD, Pa., March 12 -
    Qtrly div 41.5 cts vs 41.5 cts prior
    Pay July 29
    Record June 15

.I 9358
.C
crude
.W
SUN RAISES CRUDE POSTINGS 50 CTS, EFFECTIVE TODAY, WTI TO 17.50.
dlrs/bbl

.I 9359
.C
earn
.W
IPCO CORP <IHS> SETS REGULAR PAYOUT.
    WHITE PLAINS, N.Y., March 12 -
    Qtrly div nine cts vs nine cts prior
    Pay May 1
    Record April 9


.I 9360
.C
acq
.W
FIRST GRANITE <FGBI> AGREES TO BE ACQUIRED.
    GRANITE CITY, ILL., March 12 - First Granite Bancorp Inc
said it agreed in principle to become a wholly owned subsidiary
of Magna Group Inc <MAGI>.
    Under terms of the agreement, First Granite shareholders
will receive 2.175 shares of Magna for each First Granite share
held. First Granite shareholders will be asked to approve the
tranaction in late summer.
    First Granite, which has 675,000 shares outstanding, as of
Dec 31, 1986 had assets of 186.5 mln dlrs. It owns First
Granite City National Bank and Colonial Bank of Granite City,
Ill.
    Magna Groups as of Dec 31, 1986 had assets of 1.47 billion
dlrs. It owns 13 banks, a data services company, a mortgage
company and a trust company, serving St. Louis as well as
Springfield, Centralia and Decatur, Ill.


.I 9362
.C
interest
.W
******CANADIAN IMPERIAL BANK OF COMMERCE CUTS PRIME RATE TO 8.75 PCT FROM 9.25 - TOMORROW.
Blah blah blah.

.I 9364
.C
earn
.W
THERMWOOD CORP <THM> 2ND QTR JAN 31 NET.
    DALE, IND., March 12 -
    Shr three cts vs three cts
    Net 165,798 vs 143,872
    Sales 1,787,561 vs 1,072,686
    Six mths
    Shr four cts vs four cts
    Net 175,928 vs 191,310
    Sales 3,137,695 vs 2,723,557
    Avg shrs 4,862,046 vs 4,722,150


.I 9365
.C
earn
.W
PERINI INVESTMENT PROPERTIES <PNV> RAISES PAYOUT.
    FRAMINGHAM, Mass., March 12 -
    Qtly div 15 cts vs 12 cts in prior qtr
    Payable June 25
    Record May 28


.I 9366
.C
crude
.W
SUN <SUN> RAISES CRUDE POSTINGS 50 CTS.
    New York, March 12 - Sun Co said it raised the contract
price it will pay for crude oil 50 cts a barrel, effective
today.
    The increase brings Sun's posted price for the West Texas
Intermediate and West Texas Sour grades to 17.50 dlrs/bbl. The
Light Louisiana Sweet grade was also raised 50 cts to 17.85
dlrs/bbl.
    Sun Co last changed its crude postings on March 4.


.I 9367
.C
earn
.W
PETROLEUM AND RESOURCES CORP <PEO> DIVIDEND.
    NEW YORK, March 12 -
    Interim income dividend 20 cts. Last paid 1.14 dlrs
February 27, including capital gains of 50 cts.
    Pyable April 20
    Record April eight


.I 9368
.C
interest
.W
******ROYAL BANK OF CANADA LOWERS PRIME RATE TO 8-3/4 PCT, DOWN 1/2.
Blah blah blah.

.I 9370
.C
earn
.W
NEW LINE CINEMA CORP <NLN> 4TH QTR NET.
    NEW YORK, March 12 -
    Shr 11 cts vs nine cts
    Net 677,498 vs 461,485
    Revs 6,271,010 vs 5,135,729
    Year
    Shr 81 cts vs 20 cts
    Net 4,406,065 vs 973,967
    Revs 26.5 mln vs 14.1 mln
    Avg shrs 5,457,339 vs 4,978,965


.I 9371
.C
interest
.W
OTTAWA SEEKS EXPLANATION OF CREDIT CARD RATES.
    OTTAWA, March 12 - Minister of State for Finance Tom Hockin
said he has asked the Canadian Bankers Association, an industry
lobby group, for an explanation of the level of credit card
interest rates.
    Hockin said he hopes to here the association's response on
the "important" issue soon. Hockin was responding to questions
in the House of Commons about why credit card rates, which run
as high as 28 pct per year, remain high when other rates are
falling.
    Today, the Canadian bank rate fell to 7.28 pct from 7.54
pct last week and the Canadian Imperial Bank of Commerce cut
its prime rate, effective tomorrow, to 8.75 pct from 9.25 pct.


.I 9372
.C
earn
.W
IPCO CORP <IHS> REGULAR DIVIDEND.
    WHITE PLAINS, N.Y., March 12 -
    Qtly div nine cts vs nine cts in prior qtr
    Payable May one
    Record Apreil nine


.I 9373
.C
earn
.W
******ASAMERA INC YEAR OPER SHR LOSS 48 CTS VS PROFIT 50 CTS.
Blah blah blah.

.I 9375
.C
crude
.W
******DIAMOND SHAMROCK RAISED CRUDE BY 50 CTS/BBL TODAY. WTI UP TO 17.50 DLRS.
Blah blah blah.

.I 9378
.C
acq
.W
ALLEGHNEY INTERNATIONAL <AG> FACES ADDED COUNT.
    PITTSBURGH, March 12 - Alleghney International Inc said the
plaintiffs in the existing lawsuits opposing its sale requested
an amendment to their complaint to include a class action
count.
    Alleghney said the suit, filed in the U.S. District Court
for the Western District of Pennsylvania, was aimed at blocking
the sale of Alleghney to an affiliate of First Boston Inc.
    Allegheney said the additional count sought by the
plaintiffs alleges the price to be offered for AI's common
stock, 24.60 dlrs, is grossly unfair and one the purposes of
the proposed sale is to absolve the individual defendants of
liability in the lawsuit.
     The additional count among other forms of relief, requests
an injunction against the defendants from taking any steps to
accomplish the proposed sale, Alleghney said.


.I 9379
.C
crude
.W
******PHILLIPS RAISES CRUDE POSTINGS 50 CTS EFFECTIVE TODAY, WTI TO 17.50 dlrs/bbl.
Blah blah blah.

.I 9380
.C
crude;nat-gas;
.W
U.S. SEISMIC CREW COUNT DROPS 6 PCT IN FEBRUARY.
    TULSA, Okla, March 12 - The number of seismic crews
searching for oil and gas in the United States dropped by nine
to a total of 151 crews, a decrease of six pct from January,
the Society of Exploration Geophysicists said.
    The February total represented a 49 pct decrease from
February 1986.
    Worldwide, the association's monthly survey showed that
seismic exploration for oil and gas increased to 395 in
February, up three from the month before. Africa added three
seismic crews, the Middle East increased by two and the Far
East added one while reductions were reported in Central and
South America, Europe and the United States.


.I 9381
.C
earn
.W
BULL AND BEAR EQUITY INCOME FUND <BULAX> DIV.
    NEW YORK, March 12 
    Qtly div eight cts vs eight cts prior
    Payable March 31
    Record March 18


.I 9383
.C
cocoa
.W
PESSIMISM MOUNTS OVER BAHIAN TEMPORAO COCOA CROP.
    By Richard Jarvie, Reuters
    RIO DE JANEIRO, March 12 - Pessimism over the effects of a
prolonged dry spell on the coming Bahian temporao cocoa crop is
rising with trade forecasts generally in the 2.0 mln to 2.5 mln
bag range against 2.5 mln to 3.0 mln a fortnight ago.
    Trade sources told Reuters from the state capital of
Salvador that despite scattered rains since mid-February, which
broke a six week drought, plantations have not picked up as
hoped and very little cocoa is expected to be gathered in the
first three months of the May/September crop.
    The sources said arrivals from May through July might only
reach around 600,000 bags whereas in normal years a figure of
1.0 mln to 1.5 mln bags might be expected.
    Arrivals from then should start to pick up sharply as pods
from current flowering are gathered. However, the sources noted
a late temporao is always more susceptible to pod rot, which
flourishes if conditions turn cold and humid, and which is more
likely from late July on.
    This year's crop is doubly susceptible because poor prices
mean farmers were not encouraged to invest in fertilisers and
insecticides and are also unlikely to treat against pod rot.
    A severe attack of pod rot can cause the loss of over
500,000 bags in a very short period, one source said.
    Because of the increased exposure to pod rot damage,
estimates of the final outcome of the temporao are extremely
vulnerable and production could easily drop to below the 2.0
mln bag mark if the disease hits.
    Although flowering was good following the start of the
rains, pod setting was not up to expectations, possibly because
the drought had caused a drop in the insect population which
pollinates flowers, the sources said.
    However, reports from farms indicate moisture levels are
now generally back to near normal levels and that current
flowering and pod setting is good, which should result in
mature fruit from August through September.
    The sources said they expect no break in the harvesting of
beans between the end of the temporao and the beginning of the
main crop, which officially starts on October 1.
    "The cut-off date is completely artificial. If things go
well from now on we should see heavy harvesting without a break
from August through November or even December," one said.
    If predictions of a 2.0 to 2.5 mln bag temporao prove
accurate this would be below the 2.7 mln bag average for the
past 10 years. The last poor temporao was in 1984 when
prolonged drought and later pod rot cut production to 1.79 mln
bags, the lowest since 1974.
    Good growing conditions the following year produced a
temporao of 3.12 mln bags, just below the 1983 3.17 mln bag
record, while last year's output, which also suffered some
drought damage, was 2.77 mln bags.
    Figures for the coming temporao might be distorted upwards
by the inclusion of undeclared current main crop beans.
    The sources said large quantities of beans are believed to
have been undeclared from this year's record total harvest and
they were unsure how much of this would be unregistered by the
end of the official crop year on April 30.
    Recent official arrivals figures have been swollen by the
inclusion of beans which had been delivered previously to port
warehouses but not declared.
    Because of the high turnover of beans this year,
significant amounts have deteriorated because they were stored
too long at the back of warehouses. Some of these are expected
to be held for mixing in with early temporao arrivals.
    With official arrivals figures for the 1986/87 temporao and
main crops totalling over 6.1 mln bags, and over seven weeks
still to go to the end of the year, the total outturn should be
at least a record 6.5 mln bags if all production is declared,
the sources said.
    This would compare with the previous record set last year
of 6.03 mln.
    However, there is no way of telling how many current crop
beans will be declared after the May 1 start of the temporao
and thus the true size of the 1986/87 harvest may never be
officially registered.


.I 9385
.C
earn
.W
ROSE'S STORES INC <RSTO> 4TH QTR JAN 28.
    HENDERSON, N.C., march 12 -
    Shr 37 cts vs 37 cts
    net 7.6 mln vs 7.5 mln
    Revs 383.9 mln vs 326.3 mln
    Year
    Shr 1.17 dlrs vs 99 cts
    Net 24.0 mln vs 20.3 mln
    Revs 1.2 billion vs 1.0 billion


.I 9386
.C
wheat;grain;
.W
******U.S. EXPORTERS REPORT 120,000 TONNES WHEAT  PURCHASED FROM FOREIGN SELLERS FOR 1987/88.
Blah blah blah.

.I 9387
.C
crude
.W
PHILLIPS <P> RAISES CRUDE POSTINGS 50 CTS.
    New York, March 12 - Phillips Petroleum said it raised the
contract price it will for all grades of crude oil 50 cts a
barrel, effective today.
    The increase brings Phillip's posted price for the West
Texas Intermediate and West Texas Sour grades to 17.50 dlrs a
bbl.
    Phillips last changed its crude oil postings on March 4.
    The price increase follows similar moves by USX's <X>
subsidiary, Marathon oil, and Sun Co <SUN> earlier today.


.I 9388
.C
earn
.W
ASAMERA INC <ASM> YEAR LOSS.
    CALGARY, Alberta, March 12 -
    Oper shr loss 48 cts vs profit 50 cts
    Oper net loss 11.3 mln vs profit 18.1 mln
    Revs 262.8 mln vs 399.7 mln
    Note: 1986 net excludes tax gain of 1.1 mln dlrs or three
cts shr vs yr-ago gain of 5.6 mln dlrs or 17 cts shr.
    1986 net includes 15 mln dlr charge for reduction in
carrying value of refinery and related assets. 1985 net
includes 10.8 mln dlr gain on sale of Canadian natural gas
property.
    U.S. dlrs.


.I 9389
.C
earn
.W
LVI GROUP INC <LVI> 4TH QTR OPER NET.
    NEW YORK, March 12 -
    Oper shr profit two cts vs loss 19 cts
    Oper net profit 523,000 vs loss 2,191,000
    Revs 102.5 mln vs 39.9 mln
    Avg shrs 20.0 mln vs 11.1 mln
    Year
    Oper shr profit 11 cts vs loss 29 cts
    Oper net profit 2,240,000 vs loss 2,884,000
    Revs 304.4 mln vs 50.3 mln
    Avg shrs 19.4 mln vs 9,759,000
     NOTE: 1986 4th qtr and year oper net excludes a gain of
492,000 dlrs and 1,241,000 dlrs, respectively, for
carryforwards and a loss of 135,000 dlrs and 533,000 dlrs,
respectively, for early extinguishment of debt.
    1985 4th qtr and year oper net excludes a loss of 1,457,000
dlrs or 14 cts per share and loss 1,735,000 dlrs or 18 cts per
share, respectively, for discontinued operations.


.I 9390
.C
acq
.W
TALKING POINT/PUROLATOR COURIER CORP <PCC>.
    By Patti Domm,
    New York, March 12 - Purolator Courier corp's stock rose on
specualtion that a disgruntled former Purolator director would
find a new suitor for the company, traders said.
    Purolator agreed in late February to a 35 dlr-a-share, 265
mln-dlr offer from E.F. Hutton LBO Inc and certain members of
its Purolator courier division's management.
    The stock today hit 36-1/4, up one.
    Today, Purolator revealed in a filing with the Securities
and Exchange Commission that director Doresy Gardner resigned
from its board of directors in a letter dated March 10.
    The letter from Gardner said he resigned the board because
the merger agreement with Hutton barred directors from
soliciting new offers and he believes shareholders might get a
better deal. Gardner said he believes a better offer might be
found if the company would agree to be sold to some other
entity, or if it could sell off all or part of its U.S. courier
division.
    "Basically, (the courier division) is a company that has
450 mln dlrs in revenues. It's a very large company and it's
being sold for 50 or 60 mln dlrs," said Gardner in a telephone
interview with Reuters.
    Gardner is an official of Kelso Management, a firm
associated with Fidelity International Ltd. A group of Fidelity
companies owns eight pct of Purolator, and Gardner said he
personally owns 20,000 shares.
    A Purolator official said the company has no comment on the
letter from Gardner.
    Arbitragers speculated another overnight messenger service
may emerge as a likely bidder for Purolator. Before the
transaction with Hutton LBO was announced, analysts had also
speculated another courier company would be the most likely
suitor.
    While one arbitrager acknowledged there in fact may be no
new bidders, he said the possibility one could appear pushed
the stock into play again.
    "There's no shortage of possibilities. It's just a question
of management's willingness to let the process continue," said
one arbitrager.
    Arbitragers said a new buyer might be found because they
believe Hutton LBO has taken on no risk in the transaction.
Hutton has begun a tender for 83 pct of Purolator at 35 dlrs
cash per share. The balance of Purolator's stock will be bought
for securities and warrants in a new company holding the U.S.
courier operations.
    The arbitragers said tender offer documents show that
Hutton does not need to use its cash in the transaction and
will emerge with a giant, majority equity interest in
Purolator.
    "As far as I can tell from the public documents from the
deal that's on the table, Hutton is basically putting up zero.
One always likes a situation like that. You always like to
think if they can do this deal at no risk, there should be
someone else in the world that could do it higher," said one
arbitrager.
    The firm, however, is supplying temporary financing, and
sources close to the transaction disputed the claim that the
firm will not end up paying for its equity position.
    While one scenario mentioned in the tender offer document
did note that the E.F. Hutton Group subsidiary may not have to
keep cash in the transaction, the sources said there is some
risk to the firm.
    "There are a variety of contingencies and restricted cash,
and all sorts of things that make it very speculative," said
one of the sources, adding there are also severance payments to
employees.
    The E.F. Hutton Group subsidiary is supplying 279 mln dlrs
in so-called "bridge" financing for the transaction. The bridge
financing is a temporary loan from Hutton.
    The financing is to be replaced with permanent financing,
expected to come from banks. However, it may take some time to
replace the financing, the source said, resulting in what could
be a substantial expense to the firm.
    Gardner said Hutton stands to gain fees of 10 to 20 mln
dlrs from the transaction, but sources close to the transaction
said fees are at the low end of the scale.
    "It's a very complex transaction, but basically what
happens is they ostensibly put up money but the fees recapture
any investment they might have once the merger takes place,"
Gardner said.


.I 9391
.C
wheat;grain;
.W
USDA SAYS WHEAT PURCHASED FROM FOREIGN SELLERS.
    WASHINGTON, March 12 - The U.S. Agriculture Department said
private U.S. exporters reported purchases from foreign sellers
of 120,000 tonnes of wheat for delivery to unknown
destinations.
    The wheat, consisting of 60,000 tonnes of hard red winter
and 60,000 tones of soft red winter, is for delivery during the
1987/88 season, which begins June 1.
    A purchase from a foreign seller is a transaction in which
a U.S. exporter contracts to buy U.S.-produced commodities from
a foreign firm, the department said.


.I 9393
.C
trade
.W
******VOLCKER SEES NO CLEARCUT EVIDENCE THAT U.S. TRADE DETERIORATION HAS YET BEEN REVERSED.
Blah blah blah.

.I 9394
.C
crude
.W
 DIAMOND SHAMROCK <DIA> RAISES CRUDE POSTINGS.
    New York, March 12 - Diamond Shamrock said it raised the
contract price it will pay for crude oil 50 cts a barrel,
effective today.
    The increase brings the company's posted price for the
benchmark grade, West Texas Intermediate, to 17.50 dlrs/bbl.
    Diamond Shamrock last changed its postings on March 4.


.I 9396
.C
interest
.W
******TORONTO DOMINION BANK CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT - TOMORROW.
Blah blah blah.

.I 9397
.C
interest
.W
******BANK OF MONTREAL CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE FRIDAY.
Blah blah blah.

.I 9399
.C
cpi
.W
******VOLCKER SAYS FED REMAINS CONCERNED ABOUT THE POSSIBILITY OF RENEWED INFLATION.
Blah blah blah.

.I 9400
.C
money-supply
.W
******ASSETS OF MONEY MARKET MUTUAL FUNDS FELL 35.3 MLN DLRS IN LATEST WEEK TO 237.43 BILLION.
Blah blah blah.

.I 9401
.C
acq
.W
WEINBERGER OPPOSES FUJITSU BUYING U.S. FIRM.
    WASHINGTON, March 12 - Defense Secretary Caspar Weinberger
will join Commerce Secretary Malcolm Baldrige in fighting
Fujitsu Ltd's <ITSU.T> plan to buy 80 pct of <Fairchild
Semiconductor Corp>, Pentagon officials said.
    "He (Weinberger) opposes it. It is not in the best interests
of the country to have more of the micro-electronics business
leaving the United States," one of the Pentagon officials, who
asked not to be identified, told Reuters.
    Commerce Department officials told Reuters yesterday that
Baldrige opposed the planned sale and that the White House
Economic Policy Council will take up the matter within weeks.
    Commerce and defense officials said Baldrige and Weinberger
feared the U.S. military is already leaning too heavily on
foreign electronic support.
    But the Defense Department also said today that Weinberger
and Baldrige differed on the proposed sale of U.S. computer
equipment to Iran.
    The Commerce Department advised the Pentagon recently that
defense objections to two proposed sales -- to an Iranian power
company and the Islamic Republic of Iran News Agency -- were
not valid and the sales of small and medium computers would go
through unless more evidence was presented.


.I 9403
.C
oilseed;wheat;grain;corn;soybean;
.W
GLICKMAN PUSHES HARD FOR 0/92 FARM PLAN.
    WASHINGTON, March 12 - Implementation of a one-year 0/92
pilot program for wheat and feedgrains was strongly promoted
today by the chairman of a key house agriculture subcommittee
as a way to cut farm costs and simultaneously give farmers
another option when making their planting decisions.
    "We have a budget driven farm policy. It may be a shame,
but we are locked into this," said Dan Glickman, (D-Kans.),
chairman of the subcommittee on wheat, soybeans and feed
grains. "We need to look at ways to cut costs and not hurt the
farmer. A 0/92 plan, if properly done, could do both."
    Glickman announced this week plans to introduce a 0/92 bill
for 1987 and 1988 wheat and feedgrains. An aide to Glickman
said that it will probably be introduced next week.
    Glickman said a 0/92 program, which allows a farmer to
forego planting and still receive 92 pct of his deficiency
payment, would not be a major revision of the 1985 farm bill --
only an extension of the 50/92 option already provided under
the current bill.
    It is premature to make any major changes in the farm bill,
he said, but if agriculture has to make further cuts to meet
budget goals, a voluntary 0/92 plan would be better than
sharply cutting target prices, as USDA has proposed.
    A 0/92 plan, however, would not be decoupling, but simply a
different type of acreage diversion program, Glickman said.
    Decoupling -- delinking planting decisions from government
payments -- is too much of a policy change to approve at this
point, he said.
    "I don't think there is any interest in pursuing a
decoupling bill this year. Period. Unequivocal," Glickman said
at the hearing.
    Sen. Rudy Boschwitz (R-Minn.), cosponsor of the
Boren/Boschwitz decoupling plan, said he supports a short term
0/92 program as a move to a more permament decoupling plan.
    Boschwitz plans to introduce a 0/92 plan in the senate. His
plan would guarantee a certain deficiency payment to
participating farmers, require that idled acreage be put to
conservation use only, prohibit haying and grazing on extra
idled acreage, limit participation to a certain number of acres
in a county and provide tenant protection provisions.
    "I know we cannot obtain complete decoupling in 1987, but
we can at least move in that direction," Boschwitz said.
    Robbin Johnson, vice president of Cargill, Inc., testified
in favor of decoupling. Decoupling would end the current bias
in U.S. farm policy towards overproduction and reduce farmers'
dependency on the government, he said.
    A 0/92 plan does not go far enough in decoupling, Johnson
said, and would still encourage farmers to plant.
    Officials from the National Corn Growers Association and
the National Cattlemen's Association said their groups oppose
any 0/92 or decoupling plan due to concerns about reopening the
farm bill and creating more confusion among farmers.
    But when asked if his association were forced to choose
between a ten pct cut in target prices or a 0/92 program, Larry
Johnson of the Corn Growers said they would agree to 0/92
rather than take sharp cuts in target levels.


.I 9406
.C
acq
.W
SAFEGUARD SCIENTIFIC <SFE> IN EQUITY DEAL.
    KING OF PRUSSIA, Pa., March 12 - Safeguard Scientifics Inc
said it made a 2.5 mln dlr equity investment in <Sanchez
Computer Associates Inc>, a private computer software firm
based in Malvern, Pa.
   Safeguard said the investment gives it a "major ownership
position" in Sanchez, which specializes in software products
for financial institutions.


.I 9407
.C
earn
.W
CORE INDUSTRIES INC <CRI> 2ND QTR FEB 28 NET.
    BLOOMFIELD HILLS, MICH., March 12 -
    Shr 20 cts vs 22 cts
    Net 1,948,000 vs 2,124,000
    Sales 40.9 mln vs 41.0 mln
    Six mths
    Shr 40 cts vs 50 cts
    Net 3,864,000 vs 4,835,000
    Sales 81.7 mln vs 79.9 mln
    NOTE: 1986 results include gain on sale of land of 571,000
dlrs, or six cts a share
    1986 results include loss from discontinued operations of
403,000 dlrs, or four cts a share in the quarter and 598,000
dlrs, or six cts a share in the six months
 


.I 9411
.C
earn
.W
FIRST FINANCIAL <FFMC> IN STOCK SPLIT.
    ATLANTA, March 12 - First Financial Management Corp said
its board declared a three-for-two stock split of its common
stock.
    The split will be effected by a 50 pct stock dividend for
shareholders of record March 23 to be distributed on April six.


.I 9412
.C
interest
.W
******BANK OF NOVA SCOTIA CUTS PRIME RATE TO 8-3/4 PCT FROM 9-1/4 PCT, EFFECTIVE TOMORROW.
Blah blah blah.

.I 9416
.C
livestock;carcass;
.W
OCCIDENTAL UNIT <OXY> LIFTS LOCKOUT.
    CHICAGO, March 12 - Iowa Beef Processors Inc is lifting a
lockout at its Dakota City, Nebraska processing plant and plans
to resume operations March 16, United Food and Commercial
Workers Union spokesman Allen Zack said by phone from his
Washington, D.C. headquarters.
    Iowa Beef, a susbsidiary of Occidental Petroleum Corp,
mailed a letter to members of UFCWU Local 222 informing them a
lockout imposed by the company on December 14 would be lifted
and meatpackers could return to work under Iowa Beef's
"revised, last and best final offer," according to Zack.
    The letter was signed by four managers at the Dakota City
plant.
    Iowa Beef closed the proessing plant indefinitely in
mid-December because, it said, it had no alternative to threats
by meatpackers to disrupt operations.
    About 2,800 members of Local 222 are affected by the
shutdown. A 3-1/2 year labor contract at the plant expired
December 13.


.I 9417
.C
earn
.W
CIRCON CORP <CCON> 4TH QTR.
    SANTA BARBARA, Calif., March 12 -
    Shr loss two cts vs profit 10 cts
    Net loss 79,000 vs profit 507,000
    Revs 10.6 mln vs 2,238,000
    12 mths
    Shr profit two cts vs profit 23 cts
    Net 89,000 vs 1,130,000
    Revs 21.4 mln vs 7,766,000


.I 9418
.C
earn
.W
BROWN TRANSPORT <BTCU> DECLARES FIRST PAYOUT.
    ATLANTA, March 12 - Brown Transport Co Inc said its board
declared an initial quarterly dividend of four cts a share,
payable April 10 to stockholders of record March 31.


.I 9420
.C
gas
.W
WRIGHT SAYS A GAS TAX AN OPTION TO CUT DEFICIT.
    WASHINGTON, March 12 - House Speaker Jim Wright said a
gasoline tax is one option to finding a way to reduce the
deficit, but told reporters in response to a question he will
not try to dictate a solution to the debt problem.
    Wright has made suggestions for raising taxes about 20
billion dlrs as part of a budget plan to reduce the deficit.
Tax proposals are being given consideration by members of the
House Budget Committee, but the details of any tax increase
would be made by the tax writing House ways and Means
Committee.


.I 9421
.C
trade
.W
******KEY U.S. HOUSE TRADE SUBCOMMITTEE APPROVES BILL TO TOUGHEN U.S. TRADE LAWS.
Blah blah blah.

.I 9423
.C
acq
.W
<SUMMIT PETROLEUM CORP> SELLS SHARES.
    ABILENE, TEXAS, March 12 - Summit Petroleum Corp said it
sold 11.3 mln shares, or 29.4 pct, of its common stock to
<Halbert and Associates Inc>.
    The company said the shares were previously held by
<Consolidated Energy Corp> and Harken Oil and Gas Inc <HOGI>.
    In addition, David D. Halbert, president and chief
executive officer of Halbert, an Abilene investment firm, was
named chairman and chief executive of Summit, the company said.
   Halbert, Charles M. Bruce and James O. Burke were also named
directors, expanding the board to five, Summit added.
    The company said Burke is president and chief executive of
<Allied Comprehensive Health Inc>, Abilene, while Bruce is a
partner in the Washington law firm of Butler and Binion.
    Summit said it intends to actively seek acquisitions to
increase its asset base.


.I 9425
.C
oilseed;rapeseed;
.W
JAPANESE CRUSHERS BUY CANADIAN RAPESEED.
    WINNIPEG, March 12 - Japanese crushers bought 8,000 tonnes
of Canadian rapeseed in export business overnight for April
shipment, trade sources said.


.I 9426
.C
trade
.W
NO CLEAR EVIDENCE TRADE GAP REVERSED - VOLCKER.
    LOS ANGELES, March 12 - Federal Reserve Board Chairman Paul
Volcker said current data does not give a clear sign that the
deterioration in the U.S. trade balance has yet been reversed.
    "The data we have in hand do not provide clearcut evidence
that the deterioration in the trade balance has yet been
reversed," Volcker said in remarks prepared for delivery to a
luncheon for community leaders here.
    However, Volcker said there are encouraging signs,
particularly the rising volume of exports over the past year,
achieved despite relatively slow growth abroad.
    Volcker warned it is not sustainable from an economic
perspective to pile up foreign debt while failing to make the
investment needed to generate growth and earn the money to
service the debt.
    He said the process of restoring external balance to the
U.S. economy requires dealing with the budget deficit. He said
needed economic adjustment will require a relative shift of
financial and real resources into internationally competitive
industry. "More of our growth will need to be reflected in net
exports and business investment and less in consumption,"
Volcker said.


.I 9427
.C
livestock;carcass;
.W
IOWA BEEF LIFTS LOCKOUT AT DAKOTA CITY.
    CHICAGO, March 12 - Iowa Beef Processors Inc is lifting a
lockout at its Dakota City, Nebraska, processing plant and
plans to resume operations March 16, United Food and Commercial
Workers (UFCW) Union spokesman Allen Zack said.
    Iowa Beef mailed a letter to members of UFCW Local 222
informing them a lockout imposed by the company December 14
would be lifted and meatpackers could return to work under Iowa
Beef's "revised, last and best final offer," Zack said.
    Iowa Beef had closed the plant indefinitely in mid-December
because it said it had no alternative to threats by meatpackers
to disrupt operations.
    About 2,800 members of Local 222 are affected by the
shutdown. A 3-1/2 year labor contract at the plant expired
December 13.


.I 9428
.C
money-supply
.W
******N.Y. BUSINESS LOANS FALL 718 MLN DLRS IN MARCH 4 WEEK, FED SAYS.
Blah blah blah.

.I 9429
.C
money-supply
.W
******NEW YORK BANK DISCOUNT WINDOW BORROWINGS NIL IN MARCH 11 WEEK.
Blah blah blah.

.I 9430
.C
earn
.W
TONY LOMA CO INC <TLAM> 4TH QTR.
    EL PASO, Texas, March 12 -
    Shr profit nil vs loss 61 cts
    Net profit 3,000 vs loss 1,148,000
    Revs 18.4 mln vs 17.8 mln
    Year
    Shr loss 94 cts vs loss 28 cts
    Net loss 1,762,000 vs loss 524,000
    Revs 58.5 mln vs 67.3 mln
    NOTE: 1986 net includes extraordinary gain of 569,000 dlrs
or 30 cts per share.


.I 9431
.C
acq
.W
ALLIED-LYONS SEES NO CHANGE IN HIRAM WALKER STAKE.
    TORONTO, March 12 - Allied-Lyons PLC <ALLD.L> and Canada's
Reichmann brothers are working well together as partners and
currently do not plan any change in their joint ownership of
distiller Hiram Walker-Gooderham and Worts, Allied-Lyons
chairman Derrick Holden-Brown said.
    Allied-Lyons got 51 pct control of Hiram Walker-Gooderham
last year for about 600 mln U.S. dlrs, while the Reichmanns'
<Gulf Canada Corp> acquired 49 pct in an out-of-court pact
after a hostile battle for the wine and spirits division of
<Hiram Walker Resources Ltd>.
    "We are getting along very well as partners ... I hope
there won't be any change, but there could be," Holden-Brown
told reporters after a speech in Toronto.
    He said Allied-Lyons has a two-year call option that could
force Gulf Canada to sell its 49 pct stake to Allied-Lyons, and
Gulf Canada has a two-year put option that could obligate
Allied-Lyons to buy its 49 pct.
    "Both we and Gulf hope very much there will be no occasion
for either the put or call to be exercised," Holden-Brown said.
    In answer to a reporter's question, Holden-Brown said it
would be possible for Gulf Canada to sell off part of its 49
pct in a public offering with Allied-Lyons' consent. "I don't
think we would have any objection to it," he added.
    Allied-Lyons maintains control of Hiram Walker-Gooderham's
board of directors and has total responsibility for its
management. "We cannot contemplate giving up our control," he
said.
    Holden-Brown would not disclose how big a profit
contribution the distiller will make in Allied-Lyons' financial
results, but he said "it will be substantial."
    "I am not able to give profit forecasts," he said.
    Holden-Brown said Allied-Lyons was able to finance the
Hiram Walker-Gooderham acquisition with cash and borrowings,
and has no current plans for a stock issue.
    He said the company is not currently negotiating any more
acquisitions in Canada but has a team of officials evaluating
possible purchases of wines, spirits, soft drinks or food
concerns. "I don't think we shall be looking at the brewery
scene (which is) highly concentrated already," he added.
    Holden-Brown said Allied-Lyons plans to list its shares on
Canadian stock exchanges, possibly later this year.
             


.I 9432
.C
money-supply
.W
NEW YORK BUSINESS LOANS FALL 718 MLN DLRS.
    NEW YORK, March 12 - Commercial and industrial loans on the
books of the 10 major New York banks, excluding acceptances,
fell 718 mln dlrs to 64.87 billion in the week ended March 4,
the Federal Reserve Bank of New York said.
    Including acceptances, loans fell 581 mln dlrs to 65.63
billion.
    Commercial paper outstanding nationally dropped 13 mln dlrs
to 336.02 billion.
    National business loan data are scheduled to be released on
Friday.


.I 9434
.C
earn
.W
EATON VANCE CORP <EAVN> 1ST QTR JAN 31 NET.
    BOSTON, March 12 -
    Shr 53 cts vs 34 cts
    Net 2,253,742 vs 1,332,652
    Avg shrs 4,251,553 vs 3,932,064


.I 9436
.C
earn
.W
ADAMS EXPRESS CO <ADX> SETS REGULAR PAYOUT.
    NEW YORK, March 12 -
    Div 12 cts vs 12 cts
    Pay April 20
    Record April 8
    NOTE: company pays dividend of 12 cts three times annually
with a bulk payment at the end of the fiscal year to equal
annual dividend of 50 cts.


.I 9437
.C
grain
.W
CARGILL OFFICIAL DEFENDS CERTIFICATE PROGRAMS.
    WASHINGTON, March 12 - The use of generic in-kind commodity
certificates has helped ease storage problems and is a
necessary part of export promotion programs, a senior executive
for the world's largest grain company said.
    Testifying before the House Agriculture subcommittee on
wheat, soybeans and feedgrains, Robbin Johnson, vice president
of Cargill, Inc., disputed claims that U.S. grain companies
have made huge profits from certificate trading.
    "The certs program is not in any way a windfall to the
trade," he said. Johnson said that Cargill has been dealing
with a two pct spread in certificate transactions, and that
this is within the normal grain marketing levels.
    Johnson recognized current concern over the cost of
certificates as compared to cash, but said that critics need to
look more closely at the savings caused by certs, noting for
example that widespread use of certs in the PIK and Roll
marketing technique last summer helped ease storage costs.
    Certificates are also an important part of any export
promotion program, he said.
    "The more you look at ways to expand export markets, the
more you have to look at ways to expand certs to put more grain
into the market to meet demand," he said.
    Subcommittee chairman Dan Glickman (D-Kans.) said his
committee would be looking at the certificate program later
this year and studying the General Accounting Office report on
certificate costs.


.I 9438
.C
crude
.W
HOUSE SPEAKER BACKS OIL IMPORT FORECAST PLAN.
    WASHINGTON, March 12 - House Speaker Jim Wright endorsed a
proposal to require the president to take action to reduce oil
imports if they threaten to top 50 pct of U.S. consumption.
    Wright told reporters the plan by Sen. Lloyd Bentsen, a
fellow Texas Democrat, was positive and useful. Oil imports
peaked in 1977 at 47 pct, were short of 36 pct last year and
this year are up over 40 pct, Bentsen said. 
    The Bentsen proposal, supported by 24 other Senators, would
would require the president to issue annual three-year oil
import forecasts. In any year they threatened to top 50 pct, he
would be ordered to propose quotas or other solution.
   


.I 9445
.C
money-supply
.W
******U.S. BANK DISCOUNT BORROWINGS AVERAGE 148 MLN DLRS A DAY IN MARCH 11 WEEK, FED SAYS.
Blah blah blah.

.I 9446
.C
money-supply
.W
******U.S. BANK NET FREE RESERVES 660 MLN DLRS IN TWO WEEKS TO MARCH 11, FED SAYS.
Blah blah blah.

.I 9447
.C
money-supply
.W
******U.S. M1 FALLS 600 MLN DLRS IN MARCH 2 WEEK, FEB M2 DOWN 1.6 BILLION, M3 UP 3.0 BILLION.
Blah blah blah.

.I 9449
.C
acq
.W
PRINCEVILLE <PVDC> TO SELL ITS AIR OPERATION.
    HONOLULU, March 12 - Princeville Development Corp and
<Aloha Inc>, parent of Aloha Airlines Inc, jointly said they
agreed to terms for the sale of Princeville Airways Inc to
Aloha. Terms of the agreement were not disclosed.
    Under the proposed sale, the companies said Aloha would
acquire the entire Princeville Airways commuter operation and
access to the Princeville Airport on the island of Kauai.
    They said Princeville Airways is expected to operate as a
subsidiary of Aloha Inc and will continue to use the
Princeville Aiways name.


.I 9450
.C
acq
.W
NEW HAMPSHIRE SAVINGS <NHSB> TO BUY BANK.
    CONCORD, N.H., March 12 - New Hampshire Savings Bank Corp
said it agreed to buy <Seashore Bankshares Inc> in an exchange
of stock.
    According to the terms of the deal, it said Seashore's
61,000 shares will be exchanged for 9.8 mln dlrs of New
Hampshire Savings stock.
    It said Seashore Bankshares has assets of about 46 mln
dlrs.



.I 9454
.C
orange
.W
FCOJ MOVEMENT 3,915,370 GALLONS LAST WEEK.
    WINTER HAVEN, FLA., March 12 - Florida Citrus Processors
Association said frozen concentrate orange juice movement into
trade channels in the week ended March 7 totalled 3,915,370
gallons versus 3,956,126 gallons in the week ended February 28
and 4,284,693 gallons in the corresponding year-ago period.
    There were 3,814,891 gallons of foreign imports last week
versus 133,505 gallons the week before. Domestic imports last
week were 306,031. Retail movement was 1,652,916 versus
2,015,953 a year ago. Bulk movement was 1,934,494 against
1,954,103 a year earlier.
    Current season cumulative movement was 60,480,375 gallons
versus 59,654,702 last year. Cumulative net pack for the season
was 80,359,978 versus 74,071,755 a year ago. Inventory was
83,422,435 versus 81,963,040 a year ago.


.I 9457
.C
money-supply
.W
U.S. M-1 MONEY SUPPLY FALLS 600 MLN DLRS.
    NEW YORK, March 12 - U.S. M-1 money supply fell 600 mln
dlrs to a seasonally adjusted 738.0 billion dlrs in the March 2
week, the Federal Reserve said.
    The previous week's M-1 level was revised to 738.6 billion
dlrs from 738.5 billion, while the four-week moving average of
M-1 rose to 737.1 billion dlrs from 736.8 billion.
    Commenting on February growth of the broader monetary
aggregates, the Fed said that M-2 fell 1.6 billion dlrs, while
M-3 rose three billion. Economists polled by Reuters had
projected a 900 mln dlr fall in M-1, a 1.8 billion dlr drop in
M-2 and no change in M-3.


.I 9461
.C
gnp;cpi;reserves;
.W
BOLIVIA TO OFFER TO BUY BACK BANK DEBT.
    By Paul Iredale, Reuters
    LA PAZ, March 12 - Bolivia is to make a formal offer during
the next few months to buy back its 900 mln dlrs debt from
commercial banks at a discount of up to 90 pct, central bank
president Jier Nogales said.
     Nogales told Reuters in an interview the steering
committee of Bolivia's creditor banks had agreed to consider
the offer at a meeting in New York last month.
     He said the offer would be based on the value of Bolivian
paper on the international secondary debt market, where it now
trades at between 10 and 15 pct of its face value.
    Nogales said Bolivia will make a single offer to buy back
its commercial debt and banks who accepted would be paid the
discounted rate in full.
    Banks which declined the offer would be repaid over 20 to
30 years at interest rates below those fixed in the
international markets, he added.
    Bolivia has frozen payments on medium and long term loans
to commercial banks since March, 1984, and Nogales said there
would be no money available to restart traditional debt
servicing to them for some time.
     Several Latin American countries have initiated schemes to
cancel foreign debt by equity swaps or third party buy-backs,
but Bolivia would be the first country in the region to make a
formal offer to buy back all its commercial bank debt at
discounted rates.
    Nogales said practical and strategic considerations would
determine the exact timing of the offer but it would be made in
the next few months.
     He said Bolivia would not bargain with creditor banks over
the price to paid for the debt paper they hold, and would make
a single non-negotiable offer.
    He said Bolivia could not even pay interest to friendly
creditor countries, let alone commercial banks. The only
traditional way forward was to capitalise interest, which would
mean greater bank exposure in Bolivia and greater loss
provisions, he added.
    "We are confident that the banks are going to be
reasonable," Nogales said. "Now they can resolve their problems
for once and for all."
    "The most conservative ones who want a little more will
wait a year, but I don't know if the window of opportunity will
be open all the time," he added.
    Discussing the status of other parts of Bolivia's four
billion dlr foreign debt, 2.5 billion of which is owed to
governments and the rest to international agencies, Nogales
said negotiators had achieved considerable success in recent
discussions with the Paris Club.
     He said Paris Club creditors had agreed to reschedule
Bolivian debt over 10 years with five to six years grace, while
accepting that interest would not be paid until 1989. Interest
rates were being discussed on a bilateral basis under Paris
Club rules, he added.
     He said some Paris Club members had agreed to disregard
penalty interest payments and negotiations were continuing with
Argentina and Brazil, who hold 700 mln dlrs of Bolivian debt.
    He said Bolivia was continuing to service loans from
international agencies, and it expected to receive up to 400
mln dlrs in disbursements this year.
    The capital flow for loans and their servicing had changed
from a negative balance of 250 mln dlrs in 1985 to a net inflow
of 130 mln dlrs last year, he added.
    Nogales said that Bolivia's net international reserves now
stood at around 250 mln dlrs, compared to one mln dlrs in
disposable funds when the government of Victor Paz Estenssoro
took office in August, 1985.
    Nogales said inflation, which soared to over 20,000 pct a
year in the government's first month in office, was now down to
10 pct on an annualised basis from the last six months, and the
plan was that it should continue at this level.
    He said the government was also expecting at least three
pct growth in gdp this year after several years of negative
rates.


.I 9462
.C
oilseed;wheat;grain;soybean;cotton;rice;
.W
U.S. MARKET LOAN NOT THAT ATTRACTIVE-BOSCHWITZ.
    WASHINGTON, March 12 - A marketing loan for U.S. wheat,
feedgrains and soybeans would do nothing to help the surplus
production situation and would be extremely costly, Sen. Rudy
Boschwitz (R-Minn.) said.
    "I think I would not support a marketing loan now," he told
the House agriculture subcommittee on wheat, soybeans and
feedgrains. Boschwitz was one of the original supporters of a
marketing loan for cotton and rice, but has since focused
support on decoupling legislation, the Boren/Boschwitiz bill.
    A market loan for grains and soybeans would encourage more
production, especially in high-yielding areas, would be much
more expensive than the current cotton and rice marketing loans
and not increase exports significantly, he said.


.I 9464
.C
earn
.W
AMVESTORS FINANCIAL <AVFC> SETS STOCK DIVIDEND.
    TOPEKA, Kan., March 12 - AmVestors Financial Corp said it
declared a 25 pct stock dividend payable June 19 to holders of
record June one, subject to an increase in authorized shares.
    It said shareholders will vote at the April 23 annual
meeting to increase authorized shares to 25 mln from 10 mln.
    The company also said it plans to pay an initial quarterly
dividend of five cts a share on the shares.



.I 9465
.C
trade
.W
U.S. HOUSE PANEL APPROVES TRADE BILL.
    WASHINGTON, March 12 - The House Ways and Means Trade 
Subcommittee unanimously approved a toned-down version of
legislation designed to toughen U.S. trade laws and wedge open
foreign markets to more U.S. goods.
    The measure now goes to the full House Ways and Means
Committee next week, but major changes are not expected,
congressional sources said.
    "This product could very well be toughening our trade policy
and doing it in a manner that opens markets without this
frightening word 'protectionism'," Ways and Means chairman Dan
Rostenkowski, an Illinois Democrat said.
    The trade subcommittee backed away from mandating specific
retaliation against foreign countries for unfair foreign trade
practices as the House had approved in a trade bill last year.
    But it held over for the full Ways and Means Committee
debate on a controversial plan by Rep. Richard Gephardt to
mandate a reduction in trade surpluses with the U.S. by
countries such as Japan, South Korea and Taiwan.
    Gephardt, a Missouri Democrat, has not decided the exact
form of his amendment, an aide said. Last year the House
approved his idea to force an annual ten pct trade surplus cut
by those countries. 
    The trade bill will be wrapped in with legislation from
other committees dealing with relaxation of export controls,
incentives for research, expanded worker training and education
and other efforts to increase U.S. competitiveness.
    The comprehensive trade bill is to be considered by the
full House in late April and then will be considered by Senate
committees.
    It requires President Reagan to retaliate against foreign
unfair trade practices but do not mandate quotas or tariffs and
allow an exemption if U.S. economic security would be harmed by
U.S. actions against other countries.
    The bill would make it easier for U.S. industries to win
relief from surges of imports of competitive products.
    It extends until January 1993, the administration's
authority to negotiate trade agreements as part of the new
round of multilateral talks under the General Agreements on
Tariffs and Trade.
    And, it includes provisions to tighten trade rules on
copyrights, patents and telecommunications goods.


.I 9467
.C
earn
.W
STANDARD LOGIC INC <STDL> 1ST QTR LOSS.
    CORONA, Calif., March 12 - Qtr ends Jan 30
    Oper shr loss 45 cts vs profit 44 cts
    Oper Net loss 225,815 vs profit 219,593
    Revs 175,247 vs 827,748
    NOTE: oper net 1987 excludes loss from discontinued
operations of 125,047 vs loss 34,055 for prior qtr.
    excludes tax carryforward 150,000 for prior qtr.


.I 9468
.C
cpi
.W
INFLATION STILL A CONCERN, VOLCKER SAYS.
    LOS ANGELES, March 12 - Federal Reserve Board Chairman Paul
Volcker said both the Fed and the financial markets remain
concerned about the possibility of renewed inflation.
    "A possibility of renewed inflation remains of concern,
both in the markets and within the Federal Reserve," he said in
remarks prepared for delivery to a group of business leaders
here.
    He said one potential channel for renewed inflationary
pressures would be an excessive fall of the dollar in the
exchange markets, which would push import prices up sharply.
    He said participants in financial markets and business
remain skeptical of prospects for lasting price stability.
    "Should the skepticism about our ability to resist
inflation be reinforced by bad policy, the consequences for
interest rates, for exchange rates, and for the economy
generally would clearly be undesirable...recognition of that
danger neccesarily must weigh heavily in the formation of
monetary policy," the Fed chairman said.
    Volcker said attempts to drive the dollar much lower would
undermine the hard won gains against inflation and would risk
dissipating the flow of foreign capital.


.I 9471
.C
crude
.W
******UNOCAL RAISES MOST CRUDE PRICES 50 CTS, TODAY, WTI AT 17.50 DLRS.
Blah blah blah.

.I 9473
.C
earn
.W
SHAWMUT CORP <SHAS> SETS REGULARY DIVIDEND.
    BOSTON, March 12 - 
    Qtly div 51 cts vs 51 cts prior
    Pay April one
    Record March 23


.I 9475
.C
earn
.W
ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31.
    JOHANNESBURG March 13 -
    Shr 516 cts vs 347
    Final div 135 vs 125 making 190 vs 180
    Pre-tax 133 mln rand vs 137 mln
    Net 260 mln vs 172 mln
    Tax 76 mln vs 42 mln
    Att to outside shareholders 96 mln vs 53 mln
    Pref div 1 mln vs same
    Turnover 3.14 billion vs 2.56 billion
    Div pay May 8, register March 27.
    Note - Full name is Anglo American Industrial Corp Ltd.


.I 9477
.C
livestock;l-cattle;
.W
LIVE CATTLE RALLY AS LOCKOUT AT MEAT PLANT ENDS.
    CHICAGO, March 12 - Live cattle futures posted a robust
rally today after a major beef packing company said it would
end a lockout at its slaughtering plant in Dakota City, Neb.
    April delivery cattle on the Chicago Mercantile Exchange
closed at 64.45 cents a pound, up 0.83 cent, as the market
expected demand for live animals to increase as the plant
restarts operations.
    Iowa Beef Processors, a division of Occidental Petroleum,
said it planned to reopen the plant, one of the largest in the
nation, on March 16. The plant has been closed since Dec. 14,
the day after a contract between IBP and Local 222 of the
United Food and Commercial Workers Union expired.
    The plant employs 2,800 workers and can slaughter several
thousand animals a day, a company spokesman said.
    The company said it locked out union workers because they
threatened to disrupt operations. It was unclear whether union
meatpackers would return to work. They rejected the company's
latest contract offer March 5.
    Traders said cattle prices advanced at midsession as rumors
circulated that the lockout was ending, and gains were further
fueled by a noticeable increase in demand for live animals on
cash markets in Nebraska and the Texas Panhandle.
    The rally in cattle also boosted values of live hogs and
frozen pork bellies, which also were supported by indications
that producers were expanding their hog herds at a slower rate
than previously expected.
    Petroleum futures posted a modest rally on the New York
Mercantile Exchange.
    But a report that the Soviet Union planned to reduce the
price of its crude oil exports may pressure the market Friday,
said Nauman Barakat, petroleum analyst in New York with Smith
Barney, Harris Upham and Co.
    Buying by companies that deal in petroleum helped prices
recover from early weakness, traders said.
    Gold futures rallied, partly in response to strength in the
silver market, on the Commodity Exchange in New York. Silver
prices rallied after a U.S. brokerage house recommended its
customers buy the metal, traders said.
    Coffee futures drifted lower in response to a report that
Colombia lowered the price of its exports, traders said.
    Sugar prices closed slightly higher on the Coffee, Sugar
and Cocoa Exchange despite a large export sale by the European
Commission on Wednesday.
    Soybeans were higher, wheat lower and corn mixed on the
Chicago Board of Trade.
    Soybeans were boosted by expectations that the Agriculture
Department would report a healthy signup for the Conservation
Reserve Program, which pays farmers to leave highly erodible
land idle instead of planting a crop, traders said.
    Concern that a strike by Brazilian seamen might interrupt
exports of soybeans from Brazil, where the harvest is just
beginning, also underpinned prices, they said.
    Wheat prices were pressured by selling in response to
trends on price charts, they said.


.I 9482
.C
crude;nat-gas;
.W
PERMIAN BASIN <PBT> PROVEN RESERVES FALL.
    FORT WORTH, Texas, March 12 - Permian Basin Royalty Trust
said that as of December 31, 1986, its estimated proved
reserves totaled 18.5 mln barrels of oil and 52.9 mln MCF, or
thousand cubic feet, of gas.
    This compares with yearend 1985 proved reserves estimates
of 26.4 mln barrels of oil and 78.6 mln MCF of gas, Permian
said.
    Permian said December 1986 future net revenues from proved
reserves were 335.6 mln dlrs, down from 814.2 mln dlrs in 1985.
    Permian said the present value of estimated future net
revenues discounted at 10 pct is 165.3 mln dlrs, compared with
374.3 mln dlrs.
    It said the downward revisions in both proved reserves and
estimated future net revenues resulted from decreased prices for
oil and gas.



.I 9486
.C
gnp;cpi;
.W
VENEZUELAN PRESIDENT DEFENDS REFINANCING ACCORD.
    Caracas, march 12 - president jaime lusinchi defended the
20.3 billion dlr debt rescheduling accord his government
recently signed, saying it will open new credit flows and bring
needed foreign investment to venezuela.
    In his annual state of the nation speech, lusinchi also
said venezuela supports other latin american debtors, despite
having reached a rescheduling accord on its own.
    In the 90-minute speech to the congress, lusinchi summed up
the achievements of his administration, which took office in
february 1984. He pointed to the 3.3 pct growth in non-oil gdp
in 1986 and to a "moderate" 12 pct inflation rate.
    Lusinchi said the 20.3 billion dlr debt rescheduling signed
feb. 27 put an end to a process which had been 'the calvary of
our nation over the post four years.'
    In the refinancing accord, he said, venezuela managed to
achieve 'the most inmportant thing, which is the reopening of
financial flows from abroad, essential for the financing of
development and the (financing) of trade and investment.'
    Once all the details of the agreement are finalized, he
said, venezuela will seek new financing for the imported
components of new development projects.
    "our intention is not to continue being net exporters of
capital, but to protect our balance of payments with a flow of
capital towards venezuela," he said.
    Under the agreement signed february 27, venezuela extended
payments on the debt from 12 to 14 years, while the interest
rate was lowered from 1 y 1/8 to 7/8 of a pct over libor.
    At the same time, payments over the next three years were
lowered from 3.450 to 1.350 billion dlrs.
    Lusinchi defended the rescheduling accord against critics
who said it merely deferred the weight of payments to future
governments.


.I 9487
.C
earn
.W
ANGLO AMERICAN <AIVJ.J> YEAR TO DEC 31.
    JOHANNESBURG March 13 -
    Shr 516 cts vs 347
    Final div 135 vs 125 making 190 vs 180
    Pre-tax 133 mln rand vs 137 mln
    Net 260 mln vs 172 mln
    Tax 76 mln vs 42 mln
    Att to outside shareholders 96 mln vs 53 mln
    Pref div 1 mln vs same
    Turnover 3.14 billion vs 2.56 billion
    Div pay May 8, register March 27.
    Note - Full name is Anglo American Industrial Corp Ltd.


.I 9489
.C
crude
.W
UNOCAL <UCL> RAISES CRUDE OIL POSTINGS.
    NEW YORK, March 12 - Unocal Corp said it raised the
contract price it will pay for most grades of crude oil 50 cts
a barrel, effective today.
    The increase brings Unocal's posted price for the U.S.
benchmark grade West Texas Intermediate to 17.50 dlrs a barrel.
It also brought the price for West Texas Sour to 17.50 dlrs a
bbl. Light Louisiana Sweet was also raised 50 cts to 17.85
dlrs/bbl.
    Unocal last changed its crude postings on March four, and
brings it price in line with other major companies, which have
been raising prices steadily in recent weeks.
    The increase also represents the latest in a series of
increases that began with USX Corp's <X> Marathon Petroleum
Corp's notification yesterday evening that, effective today, it
raised its crude postings 50 cts a barrel, bringing its
contract price for WTI to 17.50 dlrs a barrel.
    Earlier today, Sun Co <SUN>, Phillips Petroleum <P> and
Diamond Shamrock <DIA> also said they raised their crude
postings 50 cts a barrel, bringing their WTI contract price to
17.50 dlrs a barrel.
    Contract prices have risen in response to higher spot
market prices, oil traders said.


.I 9490
.C
livestock;carcass;
.W
MEATPACKERS RESPOND TO OCCIDENTAL<OXY> OFFER.
    CHICAGO, March 12 - Local 222 of the United Food and
Commercial Workers Union said it is calling a membership
meeting, possibly Sunday, to discuss its response to a decision
by Iowa Beef Processors Inc to lift a lockout at its Dakota
City, Nebraska plant and resume operations.
    The UFCWU will consider all options available to it
including a strike or returning to work under IBP's last labor
contract proposal, a spokeswoman for Local 222 said by phone.
    About 2,800 UFCWU members have been locked out at the
Dakota City plant since December 14.
    IBP is a subsidiary of Occidental Petroleum Corp.


.I 9491
.C
crude
.W
******CITGO RAISES CRUDE POSTINGS 50 CTS, TODAY, WTI TO 17.50 DLRS/BBL.
Blah blah blah.

.I 9492
.C
acq
.W
COURT LIFTS RESTRAINING ORDER ON MARK IV <IV>.
    BEDFORD, Mass, March 12 - Baird Corp <BATM> said the
Massachusetts State Court for Suffolk County has lifted a  
temporary restraining order prohibiting Mark IV Industries Inc
from further purchases of Baird stock.
    According to filings with the Securities and Exchange
Commission, Mark IV owns at least 17.6 pct of Baird's stock and
may attempt to acquire Baird, Baird said.
    Baird said the court also issued an order enjoining Baird
from enforcing the Massachusetts Anti-Takeover Statute against
Mark IV industries.


.I 9494
.C
earn
.W
CJI INDUSTIRES INC <CJIIA> 4TH QTR NET.
    NEW YORK, March 12 -
    Oper shr profit 60 cts vs loss 55 cts
    Oper net profit 928,000 vs loss 88,000
    Revs 48.7 mln vs 39.7 mln
    Avg shrs 3.7 mln vs 1.5 mln
    Year
    Oper shr loss 1.17 dlrs vs loss 60 cts
    Oper net profit 2,537,000 vs profit 587,000
    Revs 178.8 mln vs 117.6 mln
    NOTE: Per share figures come after preferred dividends.
    Excludes fourth quarter and full year 1986 extraordinary
gains of 29 cts and 71 cts per share, respectively.


.I 9496
.C
earn
.W
COUNSEL CORP SETS THREE-FOR-TWO STOCK SPLIT.
    TORONTO, March 12 - <Counsel Corp> said it plans a
three-for-two stock split, pending shareholder approval at the
April 28 annual meeting.
    The company said it recently reported 1986 profit of 5.9
mln dlrs, or 1.51 dlrs a share, before extraordinary items,
compared with 2.2 mln dlrs, or 81 cts, in 1985.


.I 9497
.C
crude
.W
SOUTHLAND <SLC> UNIT RAISES CRUDE POSTINGS.
    New York, March 12 - Southland Corp's Citgo Petroleum Corp
said it raised the contract price it will pay for crude oil 50
cts a barrel, effective today.
    The increase bring's Citgo's posted price for the West
Texas Intermediate and West Texas Sour grades to 17.50 dlrs a
barrel. The Light Louisiana Sweet South Onshore grade was also
raised 50 cts to 17.85 dlrs a barrel, and Light Louisiana Sweet
North was increased to 17.75 dlrs a barrel.
    Citgo last changed its postings on March four.


.I 9498
.C
earn
.W
CANNON <CAN> AUDIT TO SHOW SIGNIFICANT 1986 LOSS.
    LOS ANGELES, March 12 - The Cannon Group Inc said its
financial statements will show substantial losses for fiscal
1986 and "significant downward adjustments in previously
reported stockholders' equity."
    The company also said its 1986 audit being conducted by
<Arthur Young and Co> will cover the year ended January 3,
1987, instead of the nine-month period ended September 27, 1986
as previously announced.
    It said it anticipates the results of the audit will be
available in mid to late April 1987.


.I 9499
.C
acq
.W
EAGER TECHNOLOGY ACQUIRES NUCLAD.
    DENVER, March 12 - <Eager Technology Inc> said it signed a
letter of intent to acquire Nuclad Inc, a private Colorado
corporation, and its subsidiaries.
    Terms of the acquisition were not disclosed.


.I 9503
.C
crude;nat-gas;
.W
SAN JUAN BASIN <SJT> PROVEN RESERVES FALL.
    FORT WORTH, Texas, March 12 - The San Juan Basin Royalty
Trust said proved reserves as of December 31 were estimated at
283.1 thousand cubic feet of gas and 1,087,000 barrels of oil.
    In the year-ago period, it said proved reserves were
estimated at 346.4 thousand cubic feet of gas  and 1,974,000
barrels of oil.
    It said the present value of future net revenues discounted
10 pct was 156.2 mln dlrs compared with 446.8 mln dlrs in the
year-ago period.
    It also said that about 60 net infill wells are not
economical to drill at December 31 prices.


.I 9504
.C
acq
.W
INTERCONNECT OFFERS TO BUY GATES LEARJET <GLJ>.
    STAMFORD, Conn., March 12 - <Interconnect Capital Corp>
said it sent a letter to the board of Gates Learjet Corp,
offering to buy the company for 7.07 dlrs a share.
    Gates Corp, which owns 64.8 pct of Gates Learjet, agreed
earlier this week to sell its shares to a partnership formed by
privately-held <Cobey Corp> and a unit of Bear Stearns Cos Inc
<BSC> for 6.50 dlrs a share or 51 mln dlrs. The proposal is
subject to approval by Gates Learjet's board.
    A spokesman for privately-held Interconnect said it made
the new proposal to Gates Learjet's board, but would not say if
it had held talks with the parent company's board.
   


.I 9505
.C
acq
.W
SEAL <SINC> ACQUIRES ADEMCO LTD.
    NAUGATUCK, Conn., March 12 - Seal Inc said it acquired
Ademco Ltd, a United Kingdom company which distributes mounting
and laminating equipment and supplies, for a combination of
cash and stock valued at 2.6 mln dlrs, based on current
exchange rates.
    Seal said it will pay up to an additional 1.3 mln dlrs
contingent on the market price of Seal's common on December 31,
1988, and on certain earnings targets by the acquired business.


.I 9506
.C
crude
.W
BRAZIL CANCELS OIL PURCHASE FROM SAUDI ARABIA.
    RIO DE JANEIRO, March 12 - Brazil's state-oil company,
Petrobras, cancelled a 40 mln dlr crude oil purchase from Saudi
Arabia after the Saudis refused to accept credit guarantees
from the Bank of Brazil, a Petrobras official said.
    Export director Carlos Santana told a press conference the
Saudis were the first suppliers of oil to impose such
conditions after Brazil's decision to halt interest payment of
its commercial debts last month.
    The shipment of 2.2 mln barrels represents two days of oil
consumption in Brazil.
    But Santana said if the Saudis change their minds and
decide to respect the terms of the contract, then Petrobras
will lift the order to cancel the shipment.
    Santana said if the Saudis do not accept Brazil's terms by
Monday then Petrobras will negotiate elsewhere.
    "Petrobras has been Saudi Arabia's traditional client since
1955. If they do not accept our conditions now, it will be much
better for us, because with the market prices more or less the
same, buying from Iraq and China is an advantage," he said.
    Iraq and China have barter deals with Brazil, importing
Brazilian goods in exchange for oil, but the Saudis buy nothing
from Brazil, he said.
    Santana said despite a strike threat by oil industry
workers and a two-week stoppage by Brazilian seamen, Petrobras
oil stocks are "reasonably balanced." 
    Saudi Arabia is Brazil's second biggest oil supplier, with
an average 115,000 bpd. Iraq is the main supplier with 235,000
bpd. China comes third, with 58,000 bpd.
    "If the Saudis wish to stop our trade relationship, fine, I
am sure that if they do, we will be getting dozens of offers
from elsewhere," Santana added.


.I 9508
.C
trade
.W
U.S. HOUSE PANEL APPROVES TRADE BILL.
    WASHINGTON, March 12 - The U.S. House Ways and Means Trade
Subcommittee unanimously approved a toned-down version of
legislation designed to toughen U.S. trade laws and wedge open
foreign markets to more U.S. goods.
    The measure now goes to the full House Ways and Means
Committee next week, but major changes are not expected,
congressional sources said.
    "This product could very well be toughening our trade policy
and doing it in a manner that opens markets without this
frightening word 'protectionism'," Ways and Means chairman Dan
Rostenkowski, an Illinois Democrat said.
    The trade subcommittee backed away from mandating specific
retaliation against foreign countries for unfair foreign trade
practices as the House had approved in a trade bill last year.
    But it held over for the full Ways and Means Committee
debate on a controversial plan by Rep. Richard Gephardt to
mandate a reduction in trade surpluses with the U.S. by
countries such as Japan, South Korea and Taiwan.
    Gephardt, a Missouri Democrat, has not decided the exact
form of his amendment, an aide said. Last year the House
approved his idea to force an annual 10 pct trade surplus cut
by those countries.


.I 9512
.C
oilseed;wheat;grain;corn;soybean;
.W
NO GRAIN TO THE USSR IN LATEST WEEK -- USDA.
    WASHINGTON, March 12 - There were no shipments of U.S.
grain or soybeans to the Soviet Union in the week ended March
12, according to the U.S. Agriculture Department's latest
Export Sales report.
     The USSR has purchased 1.0 mln tonnes of U.S. corn for
delivery in the fourth year of the U.S.-USSR grain agreement.
     Total shipments in the third year of the U.S.-USSR grains
agreement, which ended September 30, amounted to 152,600 tonnes
of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of
soybeans.
    Shipments to the USSR in the second year of the agreeement
amounted to 2,887,200 tonnes of wheat and 15,750,100 tonnes of
corn.
   


.I 9513
.C
crude
.W
INDIA GETS 140 MLN DLR WORLD BANK LOAN.
    WASHINGTON, March 12 - The World Bank said it has approved
a 140 mln dlr loan for India to help lessen that country's
dependence on imported oil and spur development of its own
petroleum resources.
    The bank said the loan will be used to boost production by
injecting gas in the partially depleted Assam oil fields and to
assist exploration in other areas, including drilling 10
exploratory wells.
    The bank said the recipient of the 20-year loan will be Oil
India Ltd (OIL), which is the smaller of two public Indian
petroleum exploration and production companies.


.I 9515
.C
interest;money-supply;
.W
FED DATA INDICATE NO POLICY CHANGE LIKELY.
    By Martin Cherrin, Reuters
    NEW YORK, March 12 - U.S. bank reserve, monetary and
discount window borrowings data released by the Federal Reserve
today clearly indicate that policy is "on hold" and may not be
changed for weeks or even months, economists said.
    "The Fed is keeping policy at dead center and it is not
about to change policy unless something fairly dramatic occurs
on the economy," said John Williams of Bankers Trust Co.
    "These numbers contain no hint that a policy shift is in
prospect, nor do economic or financial developments argue for
policy change," said William Griggs of Griggs and Santow Inc.
    Fed data released today were all in line with economists'
expectations and similar to the numbers of recent weeks.
    The Fed said net discount window borrowings in the two
weeks ended Wednesday averaged 191 mln dlrs, up from 381 mln
dlrs in the February 25 statement period, but little changed
from 160 mln dlrs in the period before that.
    It said that banks' net free reserves in the latest two
weeks averaged 660 mln dlrs versus 675 mln dlrs previously.
    Finally, the Fed said that the M-1 money supply fell 800
mln dlrs in February, with the broader M-2 measure down 1.6
billion dlrs and M-3 up an even three billion dlrs.
    Analysts said that M-1 last month grew at a negative 1.3
pct annual rate compared with minus 0.7 pct for M-2 and actual
positive growth of 1.0 pct annualized for M-3.
    February levels of M-2 and M-3 left the aggregates 18.2 and
20.8 billion dlrs under their respective upper growth limits
set by the Fed for 1987. The annual growth target for both is
5-1/2 to 8-1/2 pct. There is no M-1 target.
    "In the near term, there is absolutely no reason for the
Fed to ease policy, even apart from the slowdown in money
growth," said Stephen Slifer, economist at Lehman Government
Securities Inc.
    Economists generally expect a modest pickup in monetary
growth in March after February's anemic growth rates. However,
they stress that money growth will not be strong enough to
prevent the Fed from dropping interest rates further if the
economy shows evidence of weakness.
    Commenting on February's decline in the key M-2 aggregate,
Slifer said the main cause was a 3.2 billion dlr drop in money
market deposits at banks. This number has risen three to four
billion dlrs a month for a long while, he said, so February's
weakness is not likely to persist. Slifer expects modest M-2
and M-3 growth rates of 3-1/2 to four pct during March.
    Griggs said that M-2 and M-3 in coming months should return
to the five to seven pct annualized growth region and so
continue to present no problem for the Fed.
    Economists said the Fed appears to be very comfortable with
its current policy stance and it is likely to wait for perhaps
several more months of economic data before deciding whether or
not to ease its grip on reserves.
    Given the economy's fragility in many sectors, the analysts
agreed that there is almost no chance that the Fed will choose
to raise, rather than lower, interest rates when it next
changes policy.
    "Discount window borrowings in the past week were about as
low as the Fed can get them, although Fed funds held above six
pct," said Williams of Bankers Trust. Funds averaged 6.12 pct
in the week to Wednesday, up from 6.06 pct in the prior week.
    The Fed added reserves indirectly via one billion dlrs of
customer repurchase agreements last Friday, 2.5 billion dlrs on
Monday and two billion dlrs on Wednesday. On Tuesday, it added
reserves directly through two-day System repurchases.
    Williams and Griggs agreed the Fed will let the funds rate
be largely market-driven. They said it is focusing instead on a
borrowings target of around 300 mln dlrs.


.I 9516
.C
coffee
.W
COLOMBIA'S COFFEE MARKETING TO BE MORE FLEXIBLE.
    BOGOTA, March 12 - Colombia intends to improve the
marketing of its coffee with the accent on more flexibility on
setting export registration prices, finance minister Cesar
Gaviria said.
    Speaking to reporters after announcing a lower export
registration price, or reintegro, of 1.10 dlr per lb ex-dock
New York, Gaviria said export mechanisms would be more agile.
    "In the first stage, we decided not only to lower the
reintegro but also to adopt a flexible policy of reintegro that
will allow private exporters to participate more actively in
Colombia's coffee export policy," he said.
    Traders said this means the export registration price will
change more often in a truer reflection of market trends.
    Gaviria said the measures merely responded to new market
factors since a return to a system of International Coffee
Organisation (ICO) export quotas may not occur in the short
term.
    ICO talks last month in London failed to break a deadlock
over re-introduction of export quotas, suspended in February
1986.
    Gaviria stressed that Colombia will not necessarily suffer
from depressed prices because it can compensate lower prices
with increased volume.
    "Colombia will continue to export its traditional amount of
coffee, between 9.6 and 10 mln bags (of 60 kilos), and will do
so without an agreement among producers," he said.
    He ruled out a much higher volume of exports, or up to 13.5
mln bags as mentioned in market circles, "because the idea is
precisely not to disrupt the market."
    Colombia exported a record 11.5 mln bags in the 1985/86
coffee year which ended last September 30.
    Echoing Gaviria's words, Jorge Cardenas, manager of the
national coffee growers' federation, said Colombia sought to
adapt its coffee marketing policy to circumstances.
    "There is great expectation in the world for the policies
that Brazil and Colombia will adopt. Ours is beginning to
emerge and no agreement among producers is foreseeable in the
immediate future," he told journalists.
    Trade sources in Rio today said Brazil's future export
policy was unlikely to be revealed before the end of next week.
    Cardenas said a new ICO meeting could only take place when
problems that hindered an agreement at the recent London talks
have been resolved.
    Asked to comment on a Reuter report from Jakarta saying
Indonesia hoped Colombia could use its contacts with Brazil to
suggest a compromise on the quota issue, Cardenas said the
Brazilian stand was quite clear.
    He said Brazil's current quota "reflects the reality of the
market, allows for an orderly supply and satisfies demand," but
added more clarity was needed to assess the criteria that
determined it.
    Cardenas said lows registered immediately after the failure
of the London talks were triggered by a widespread fear among
dealers of an imminent price war and the belief that producers
would go out and sell their coffee as quickly as possible,
which did not happen.


.I 9517
.C
crude
.W
INDIA GETS 140 MLN DLR WORLD BANK LOAN.
    WASHINGTON, March 12 - The World Bank said it approved a
140 mln dlr loan for India to help lessen that country's
dependence on imported oil and spur development of its own
petroleum resources.
    The bank said the loan will be used to boost production by
injecting gas in the partially depleted Assam oil fields and to
assist exploration in other areas, including drilling 10
exploratory wells.
    The bank said the recipient of the 20-year loan will be Oil
India Ltd (OIL), which is the smaller of two public Indian
petroleum exploration and production companies.


.I 9518
.C
acq
.W
CANNON <CAN> SELLS LIBRARY TO WEINTRAUB.
    LOS ANGELES, March 12 - WEintraub Entertainment Group Inc
said it agreed to acquire Cannon Group's Screen Entertainment
film library.
    The library was purchased in May 1986 as part of Cannon's
acquisition of Screen Entertainment Ltd from Bond Corp Holdings
Ltd. The library has over 2,000 theatrical motion pictures.
    Terms call for the price to be established through an
appraisal process beginning immediately and not to exceed 175
mln dlrs or be below 125 mln dlrs.
   


.I 9519
.C
acq
.W
GERBER <GRB> BUYS GERBER SYSTEMS <GSTI> SHARES.
    SOUTH WINDSOR, Conn, March 12 - Gerber Scientific Inc said
its GST Acquisition Corp purchased 444,646 shares of its 84 pct
owned Gerber Systems Technology pursuant to a January 15 tender
offer.
    Following the purchase, Gerber made a capital contribution
to GST of all the shares it owned resulting in 95.6 pct
ownership by GST.
   


.I 9522
.C
crude
.W
VENEZUELA TO LEND ECUADOR 50,000 BPD OF CRUDE.
    CARACAS, March 12 - Venezuela will lend Ecuador 50,000
barrels per day of crude oil over the next few months to help
it meet its export commitments, Energy and Mines Minister
Arturo Hernandez Grisanti said today.
    He said that under the terms of this loan, agreed during a
visit here this week by Ecuador's Deputy Energy Minister
Fernando Santos Alvite, Ecuador will begin repaying the loan in
August.
    Hernandez Grisanti said the loan will go part way to
offsetting the loss of Ecuador's 140,000 in exports caused by
earthquake damage to 25 miles of pipeline last week.
    Ecuador was forced to suspend exports after the pipeline
connecting its jungle oil fields with the pacific port of Balao
was put out of action.
    Venezuela has an output quota of 1.495 bpd, while Ecuador's
is 210,000 bpd. Santos Alvite said Ecuador will ask OPEC to
allow it to produce 100,000 bpd above its quota when the
pipeline is repaired to offset present production losses.
    Hernandez Grisanti said also a first 300,000 barrels
shipment of Venezuelan crude oil will leave for Ecuador this
weekend to help meet domestic consumption needs.
    The oil, part of a five mln additional crude oil loan by
Venezuela, will be processed at Guayaquil refineries.
    "If we had not supplied oil to Ecuador the life of this
country would have ground to a halt," he said.


.I 9523
.C
earn
.W
THE ADELAIDE STEAMSHIP CO LTD <ADSA.S> FIRST HALF.
    ADELAIDE, March 13 - First half ended December 31
    Shr 55.01 cents vs 97.76
    Int div 18 cents vs 16
    Net 75.05 mln dlrs vs 55.68 mln
    Turnover 156.94 mln vs 177.87 mln
    Other revenue 72.50 mln vs 31.18 mln.
    One-for-five rights issue at 11.50 dlrs a share
    One-for-four bonus issue on capital enlarged by rights
issue
    Shrs 99.36 mln vs 70.94 mln.
    NOTE - Shr applies to total net 54.66 mln dlrs vs 69.48 mln
after extraordinaries loss.
    Pre-extraordinaries net shr 75.53 cents vs 78.32
    Div pay April 30. Div and rights issue reg March 30. Bonus
reg May 6. Net equity-accounts share of associates' earnings.
    Pre-equity pre-tax earnings 59.52 mln dlrs vs 64.13 mln.
Pre-equity net 52.07 mln dlrs vs 43.35 mln after tax 3.45 mln
vs 16.34 mln, minorities 4.00 mln vs 6.44 mln, interest 33.89
mln vs 26.11 mln and depreciation 2.67 mln vs 2.72 mln but
before net extraordinary loss 20.39 mln vs 13.79 mln.


.I 9526
.C
earn
.W
BRYN MAWR BANK CORP <BMTC> UPS DIVIDEND.
    BRYN MAWR, Pa, March 12 -
    Qtly div 30 cts vs 30 cts prior
    Payable May one
    Record April 10
    NOTE:Bryn Mawr was reorganized as a holding company on
January 2, 1987, resulting in each share of Bryn Mawr Trust Co
being converted into three shares of the new holding company's
stock. The 30 cts dividend represents a 15 pct increase over
prior quarter.


.I 9528
.C
acq
.W
PRICE <PCLB> TO BUY 80 PCT OF TSS-SEEDMAN.
    SAN DIEGO, March 12 - Price Co said it agreed to buy at
least 81 pct of the stock of <TSS-Seedman's INc> for about 50
mln dlrs.
    The terms envision a purchase of the entire company, it
said.
    The transaction is expected to close at the end of April.


.I 9529
.C
dlr;money-fx;
.W
MIYAZAWA SAYS EXCHANGE RATES WILL STAY STABLE.
    TOKYO, March 13 - Finance Minister Kiichi Miyazawa told a
press conference he thinks exchange rates will remain stable
due to the currency accord reached in Paris last month by six
major industrialised nations but he did not say for how long.
    The dollar has hovered around 153 yen since the six agreed
to cooperate to bring about currency stability.
    Asked to comment on remarks by some U.S. Officials calling
for a further decline of the dollar, Miyazawa said only the
U.S. President and the U.S. Treasury Secretary can make
official statements about exchange rates.


.I 9530
.C
ship
.W
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS.
    SAO PAULO, March 12 - Two small shipping companies have
reached a pay deal with striking seamen, but union leaders said
most of Brazil's 40,000 seamen were still on strike.
    A union spokesman in Rio de Janeiro said the seamen had
accepted a 120 pct pay offer from the companies, Globo and
Flumar, which have less than 200 employees each.
    The two-week strike comes as Brazil faces a debt crisis and
is delaying exports badly needed to earn foreign exchange.
    Labour Minister Almir Pazzionotto said the government will
not force a settlement of the strike, which was ruled illegal
last Friday.


.I 9533
.C
earn
.W
CHOCK FULL O'NUTS CORP 2ND QTR JAN 31 LOSS.
    NEW YORK, March 12
    Oper shr loss 38 cts vs profit 24 cts
    Oper net loss 2,243,000 vs profit 1,192,000
    Revs 43.6 mln vs 41.0 mln
    Six mths
    Oper shr loss 35 cts vs profit 28 cts
    Oper net loss 2,090,000 vs profit 1,399,000
    Revs 84.3 mln vs 72.9 mln
    Note: Year-ago oper excludes loss from discontinued
operations of 1,028,000 dlrs for qtr and 1,076,000 dlrs for six
mths.


.I 9534
.C
earn
.W
ADSTEAM RIGHTS ISSUE TO RAISE 228 MLN DLRS.
    ADELAIDE, March 13 - The Adelaide Steamship Co Ltd <ADSA.S>
(Adsteam) said its one-for-five rights issue at 11.50 dlrs a
share will raise 228.5 mln dlrs for general working capital and
investment, both in Australia and overseas.
    The group announced the issue with its first half earnings
and said in a statement that the rights issue will be followed
by a one-for-four bonus issue.
    Adsteam's equity-accounted net earnings rose to 75.05 mln
dlrs in the half ended December 31 from 55.68 mln a year
earlier and interim dividend to 18 cents from 16.
    Adsteam shares eased to 14.20 dlrs from an opening 14.60
and yesterday's close of 14.50 on the issue announcement.
    The issue will be underwritten by <Morgan Grenfell
Australia Ltd> and <McCaughan Dyson Ltd> apart from the shares
to be taken up by Adsteam's associate and largest shareholder,
department store retailer <David Jones Ltd>.
    New shares will not rank for the interim dividend but will
rank equally thereafter.
    Adsteam said it expects to maintain an annual dividend rate
of 36 cents on capital enlarged to about 149 mln shares by both
issues from 99.36 mln.
    Adsteam said its diverse industrial interests generally
performed well and its results, as the ultimate holding company
and beneficiary, reflected this solid performance.
    David Jones, owned 49.2 pct by Adsteam, earned the largest
associates' net of 57.38 mln dlrs in the half against 40.29 mln
a year earlier, Adsteam's figures show.
    Wholly-owned and joint venture companies also did well
apart from timber, building supplies and real estate, which
returned below-budget profits due to the housing downturn.
    Adsteam said it sees 1987/88 as a year of reconstruction
and consolidation with the capital base boosted by the issue.


.I 9535
.C
acq
.W
HEARST BUYS HOUSTON CHRONICLE FOR 400 MLN DLRS.
    HOUSTON, March 12 - The <Hearst Corp> is buying the Houston
Chronicle from Houston Endowment Inc for 400 mln dlrs.
    The announcement was made jointly by Frank Bennack Jr,
president and chief executive officer of Hearst, and Richard
Johnson, president of the Chronicle.
    The Houston Endowment is selling the paper to comply with
federal tax laws requiring charitable institutions to divest
themselves of profit-making subsidiaries by 1989.
    The Chronicle has a daily circulation of over 425,000 and
is in competition with the Houston Post, owned by the <Toronto
Sun Publishing Corp>, with a circulation of about 316,000.
    The acquisition gives Hearst its biggest newspaper holding
in Texas, where the California-based publisher already owns
papers in San Antonio, Beaumont and Laredo.
    The chain also owns, among others, the flagship San
Francisco Examiner, the Los Angeles Herald Examiner and the
Seattle Post-Intelligencer.


.I 9536
.C
acq
.W
IEL'S ACMEX UNIT TO BID FOR CHEETHAM.
    SYDNEY, March 13 - <Industrial Equity Ltd> (IEL) unit
<Acmex Holdings Ltd> said it proposed to make a formal takeover
offer for all the issued capital of <Cheetham Ltd>, a producer
of salt, animal feed and seeds.
    Acmex said in a statement it would offer one share for
every two Cheetham shares or 3.40 dlrs cash for each share.
    Acmex said it was presently entitled to 5.1 mln Cheetham
shares or 16.85 pct of its 30.27 mln issued shares.
    The scrip offer values Cheetham at about 110 mln dlrs,
based on Acmex's current price of 7.20 dlrs, and the cash offer
at about 104 mln. Cheetham last traded at 3.10 dlrs.


.I 9538
.C
gnp
.W
U.S. OFFICIALS DISAGREE ON REDUCING BUDGET DEFICIT.
    NEW YORK, March 12 - Senior U.S. Economic officials
disagree on the likelihood the government can meet its budget
deficit reduction targets.
    Beryl Sprinkel, chairman of the Council of Economic
Advisers, reiterated the Reagan Administration's opposition to
a tax increase and its pledge to reduce the deficit by cutting
spending and fostering economic growth.
    By contrast, Rudolph Penner, Director of the Congressional
Budget Office, said the budget process has broken down and the
deficit will remain close to 200 billion dlrs for fiscal 1987.
    Sprinkel told a symposium sponsored by New York University
that spending could be cut by avoiding decisions based on the
desire to influence votes and by shifting the responsibility
for local projects to state governments.
    He also suggested a line-item veto, which allows the
President to veto parts of bill without rejecting all of it, to
limit wasteful spending. Spending and taxing decisions should
be linked more closely.
    Sprinkel said the Administration still looks for 2.7 pct
growth in U.S. Real gross national product (GNP) in 1987 and
3.5 pct in 1988.
    Asked if the latest economic reports signal this rate of
economic growth is attainable, Sprinkel said, "It looks pretty
good to me. We've had two very strong employment reports."
    He also said federal reserve policy is appropriate, adding,
"It looks like they're on track."
    While further reductions are needed in the trade deficit,
Sprinkel said the lower dollar is having an impact.
    The new 1987 tax laws will not hurt the economy and the tax
reform act of 1986 significantly lowers tax rates and will
greatly increase private production incentives, he said.
    "Our estimates at the Council of Economic Advisers suggest
national net output of goods and services will permanently
increase by approximately two pct because of the long-run
consequences of tax reform," Sprinkel said. "In 1986, this would
have amounted to an increase of approximately 600 dlrs in the
income of the average American family."
    Sprinkel also argued the 1981 tax cuts were not responsible
for the large increase in the budget deficit.
    In fiscal 1986 ending September, federal spending amounted
to 23.8 pct of GNP, while federal receipts absorbed 18.5 pct of
GNP, leaving a deficit of 5.3 pct, he said.
    Sprinkel said that, compared with fiscal 1978, the 1986
federal expenditure share of GNP is 2.7 percentage points
higher and the revenue share of GNP is virtually the same.
    "Contrary to the conventional wisdom, therefore, the 1981
tax cut is not the root cause of the extraordinary budget
deficits of the past few years," Sprinkel said.
    "This tax cut merely rolled back the inflation-induced tax
increases that occurred between 1978 and 1981," he added.
    However, the Congressional Budget Office's Rudolph Penner
argued that the tax cut in 1981 was misguided.
    "Since making the big mistake in 1981 of cutting taxes
enormously without any plan to decrease spending by the
Administration or Congress, indeed with increases in defence
spending, now all the options (for reducing the budget deficit)
are unpleasant," he said.
    Penner said the tax cut resulted from the ideological
turmoil in the U.S. Caused by the "biggest sustained inflation
in our nation's history," which helped foster widespread
distrust of government.
    "The American people turned on the government with tax
revolt at the state level and new demands on the government at
the national level," Penner said.
    "But their dislike of taxes exceeded their general dislike
of spending programs. Now the correction of that 1981 mistake
demands that the system change a lot."
    Penner sees little hope the Gramm-Rudman-Hollings budget
deficit reduction targets will be met and said the deficit will
remain at roughly 200 billion dlrs this year.
    He said a budget process that sets targets arbitrarily is
not likely to succeed.
    "I feel pretty safe in saying that any process that tries to
dictate a numerical outcome from above is doomed to fail simply
because there's no ... Way to enforce it," Penner said.
    Penner questioned the methods by which the 1987 budget
deficit was cut. He said 18 to 19 billion dlrs were eliminated
by one-time measures, such as a temporary increase in taxes
related to tax reform and sales of government assets.
    "Another four billion dlrs was cut by what I call creative
timing changes, like moving the military payday from the last
day of fiscal 1987 to the first day of fiscal 1988. That saved
more than two billion dlrs," Penner said.


.I 9542
.C
bop;trade;
.W
AUSTRALIAN TERMS OF TRADE WORSEN IN LAST QUARTER.
    CANBERRA, March 13 - Australia's terms of trade fell by a
further 3.5 pct in the fourth quarter of 1986 after declining
0.8 pct in the third quarter and 2.7 pct a year earlier, the
Statistics Bureau said.
    It said the seasonally adjusted current account deficit of
3.22 billion dlrs in the quarter would have dropped to 912 mln
if not for the terms of trade decline.
    The fourth quarter decline followed a 1.1 pct fall in
export prices and a 2.4 pct rise in import prices, it said.
    The Bureau noted Australia's terms of trade had fallen by
19.9 pct since the fourth quarter of 1983.


.I 9543
.C
sugar
.W
CHINA FACES DILEMMA OVER SUGAR IMPORTS.
    By Mark O'Neill, Reuters
    PEKING, March 13 - China has to decide if it will increase
sugar imports this year to cover falling domestic output and
rising demand, in view of market predictions that international
sugar prices will remain firm this year, traders and the
official press said.
    He Kang, Minister of Agriculture, Animal Husbandry and
Fisheries, said this week that China has adjusted the
purchasing price for sugar cane and beet to check a drop in
production last year but he gave no price details.
    One Japanese trader said domestic demand is rising rapidly
because of improving living standards and rising demand for
sweet drinks, cakes and biscuits and other sugary foods.
    "It will not be easy to cut domestic demand, even in a
state-controlled economy. China may have to import," he said.
    Customs figures show imports fell to 1.182 mln tonnes in
1986 from 1.909 mln in 1985 and fell to 25,165 tonnes in
January 1987 from 54,000 in January 1986.
    The official Economic Information newspaper last month said
production in the 1986/87 crushing season (September-April)
will be 1.18 mln tonnes short of demand.
    The paper put 1986/87 output at 4.82 mln, down from 5.24
mln in 1985/86, and domestic demand at about six mln tonnes.
    "In the last two years, acreage under sugar cane and beet
has fallen, sugar mills are underutilised, output has dropped
and cannot meet demand that is rising every day," it said.
    "The country will have to continue imports of sugar and draw
down stocks to meet market demand," it added.
    It quoted the Ministry of Light Industry as blaming the
drop in output on unreasonable state purchasing prices for cane
and beet as against other crops, which has resulted in farmers
refusing to grow them.
    The paper said in 1985 a farmer could earn up to three
times more per hectare from pineapple and watermelon and up to
seven times more from bananas than from sugarcane. He could
sell grain on the free market at 560 yuan a tonne, against only
70 yuan a tonne for sugarcane.
    Sugar mills are suffering because refined sugar prices have
not changed for 20 years despite rising costs, it said.
    In Fujian, the cost of producing one tonne rose to 702 yuan
in 1985 from 520.1 in 1980, cutting the mills' profit to 117
yuan a tonne from 217.9, it added.
    The paper said unreasonable pricing resulted in 144 of the
442 sugar mills working in the 1985/86 crushing season losing
money. China has 521 sugar mills.
    A foreign agricultural expert forecast a drop in cane
acreage in 1986/87 (September-August) of up to 10 pct in
Guangdong, which produced 45 pct of China's sugar in calendar
1985, and a smaller drop in Fujian, which produced 11 pct of
China's sugar in calendar 1985.
    He said both provinces are more developed than other
sugar-producing areas and more sensitive to demand from cities.
    But cane acreage in Guangxi and Yunnan, which accounted for
28 pct of the 1985 crop, has risen by 10 to 30 pct in 1986/87,
because cane-growing is more economic there, he said.
    He put sugar stocks at 2.333 mln tonnes in September 1986.
    A Hong Kong trader estimated stocks at more than three mln
at end-January. "Now they are falling but (they) have not
reached the critical level, compelling China to import quickly,"
he said.
    "China has options not easily available in western
countries. It controls stocks strictly and can release less
into the consumer market if stocks fall too quickly," he said.
    The Hong Kong trader said calendar 1987 imports will be
slightly less than those of 1986, because of firm world prices
and serious foreign exchange constraints which, he said, are
likely to continue until at least end-1988.
    He said nearly all cane and beet is sold to the state-owned
mills, with a small amount sold raw to consumers.
    "Most of the mills are old and inefficient, with many of
them using Soviet equipment imported in the 1950s," he said.
    He said demand in rural areas will in future rise an annual
four pct, with demand in the cities rising an annual two pct.


.I 9544
.C
livestock;carcass;
.W
JAPAN SETS 1987/88 FIRST HALF BEEF IMPORT QUOTA.
    TOKYO, March 13 - The Agriculture Ministry said it set
Japan's beef import quota for the six months from April 1 at
93,000 tonnes, up from 83,000 in the second half of 1986/87 and
85,000 a year earlier.
    Under an agreement with the U.S. And Australia, Japan has
been increasing imports by 9,000 tonnes a year from March 31,
1985, to reach a projected 177,000 tonnes in the year to March
31, 1988.


.I 9545
.C
trade
.W
JAPAN DENIES BREAKING SEMICONDUCTOR TRADE PACT.
    TOKYO, March 13 - Japan denied breaking a pact with the
U.S. On semiconductor trade but said prices set out in the pact
were too high and acknowledged difficulties in implementing the
accord.
    "We are faithfully abiding by the ... Agreement but of
course there are some problems," a spokesman for the
International Trade and Industry Ministry told Reuters.
    He said the high semiconductor prices recommended by the
agreement were leaving Japanese manufacturers piling up stocks
of unsellable products. "We are aiming to reduce production in
Japan but of course this takes time," he said.
    The spokesman said some Japanese companies were selling
chips in Europe and Asia below stipulated prices, but added: "It
is only a matter of time before we solve this problem."
    The eight month old pact aims to stop Japan selling large
quantities of chips at knock-down prices to the United States
and other countries and to increase U.S. Semiconductor sales in
Japan.
    The U.S. Senate Finance Committee this week called on
President Reagan in a non-binding resolution to retaliate
against Japan for violating the agreement.


.I 9546
.C
money-fx;yen;
.W
JAPAN MINISTER SAYS ABOUT 170 YEN APPROPRIATE.
    TOKYO, March 13 - International Trade and Industry Minister
Hajime Tamura told a parliamentary session Japan's small- and
medium-sized enterprises are seriously suffering from the yen's
rise and can only stand levels around 170 yen.
    He also said he still believes a dollar exchange rate level
plus or minus 10 yen from 170 yen would be within levels agreed
upon last month in Paris by six major industrial nations.
Finance ministers of Britain, Canada, France, Japan, the U.S.
And West Germany agreed on February 22 to cooperate in
stabilizing exchange rates around the current levels. The
dollar had closed here at 153.77 yen on February 20.


.I 9547
.C
wpi
.W
GERMAN WHOLESALE PRICES FALL 0.4 PCT IN FEBRUARY.
    WIESBADEN, March 13 - West German wholesale prices fell 0.4
pct in February from January to stand 6.9 pct lower than in
February 1986, the Federal Statistics Office said.
    In January wholesale prices rose 0.8 pct from December to
stand 8.6 pct below their level in January 1986.
    Wholesale price declines were led by starch products, down
13 pct, light heating oil 11 pct lower, heavy heating oil 10
pct lower and green coffee down 6.9 pct.
    Among higher wholesale prices were those for fresh
vegetables, up 17 pct, fresh fruit up 12 pct and eggs up 8.9
pct, the statistics office said in a statement.


.I 9548
.C
trade
.W
******SWISS FEB TRADE DEFICIT 629.7 MLN FRANCS (JAN DEFICIT 209.4 MLN) - OFFICIAL.
Blah blah blah.

.I 9549
.C
livestock;carcass;
.W
AUSTRALIAN BEEF OUTPUT SEEN DECLINING IN 1987.
    SYDNEY, March 13 - Australian beef output is forecast to
decline to 1.34 mln tonnes carcass weight in 1987 and 1.36 mln
in 1988 from 1.44 mln in 1986, the Australian Meat and
Live-Stock Corp (AMLC) said.
    Exports of beef/veal are also predicted to decline to
480,000 tonnes shipped weight in 1987 from 515,000 in 1986, and
then rally to 490,000 in 1988, the AMLC said in a summary of
its bi-annual meat and livestock forecasts.
    It sees cattle numbers remaining at around the 1986 level
of 23.2 mln beasts in both years because herd rebuilding is
expected to be slower than previously forecast.
    Beef producers are becoming more confident that higher
returns in the market, both domestically and overseas, will
continue, the AMLC said.
    The slow herd build-up and the forecast lower production is
expected to bring about a slight drop in both export and
domestic consumption this year, it said.
    The forecast does not assume a turnaround in production
levels until late next year.
    It said the outlook for beef exports as a proportion of
output remains much the same as last year when it was around 55
pct of total production. In 1985 it was 52 pct.
    The increase in exports of beef as a percentage of
production has mainly been attributed to the decline in the
Australian dollar, the AMLC said.
    It also forecast that Australia's four major markets, the
U.S., Japan, Canada and Taiwan, will continue to dominate the
chilled and frozen beef export markets. They take collectively
around 94 pct of total Australian exports.


.I 9550
.C
grain
.W
CHINA'S JANUARY GRAIN EXPORTS FALL.
    PEKING, March 13 - China's grain exports in January totaled
386,157 tonnes, down 22.1 pct from January 1986, customs
figures show.
    They gave no detailed breakdown.
    The official China Economic News quoted the figures as
showing tea exports rose 9.7 pct to 8,474 tonnes during the
month.
    Imports of wool rose 117.6 pct to 10,248 tonnes over the
same period, the figures show.


.I 9551
.C
trade
.W
SWISS FEBRUARY TRADE DEFICIT 629.7 MLN FRANCS.
    BERNE, March 13 - Switzerland had a trade deficit of 629.7
mln Swiss francs in February compared with a revised 209.4 mln
deficit in January and 723.2 mln shortfall in February 1986,
the Federal Customs Office said.
    February imports were 6.00 billion francs against exports
of 5.37 billion.
    Imports rose in real terms by 5.1 pct against February 1986
while exports rose by a real 4.6 pct, the office said.
    But a further improvement in the terms of trade left the
deficit smaller than last year.
    Last February's figure had also been hit by the import of
two passenger aircraft.


.I 9553
.C
ship
.W
JAPAN SHIPBUILDERS SEEK CARTEL TO RESTRICT OUTPUT.
    TOKYO, March 13 - Japanese shipbuilders have applied to the
state's Fair Trade Commission to form a cartel to restrict
tonnage built to about half of total capacity for the year
starting April 1, officials of the Shipbuilders Association of
Japan said.
    Under the plan, 33 yards capable of building ships of more
than 10,000 gross tons will curtail operations to three mln
compensated gross registered tonnes (CGRT) a year against
capacity of about six mln CGRT.
    The Transport Ministry estimates new orders at 3.3 mln CGRT
in the year to March 1988 and 3.1 mln the following year.
    The industry has curtailed production due to oversupply
nearly every year since 1977/78, under cartel or Transport
Ministry guidelines. The latest guidelines call for a ceiling
of four mln CGRT in the year to March 31.
    The cartels, self-imposed and self-regulated, are not
legally binding, but industry finds it in its own interest to
stick to them.
    The slowdown in orders has been caused by the strong yen
and a protracted worldwide shipbuilding slump.


.I 9554
.C
wpi
.W
SWISS WHOLESALE PRICES FALL 0.3 PCT IN FEBRUARY.
    BERNE, March 13 - Swiss wholesale prices fell by 0.3 pct in
February, giving a drop of 4.3 pct from February 1986, the
Federal Office of Industry, Trade and Labour said.
    Prices had been unchanged in January, giving an annual drop
of 4.6 pct. They fell by 2.6 pct in the year to February 1986.
    The wholesale price index, base 1963, stood at 168.5 in
February from 176.1 last year.
    The office said the fall was largely due to lower prices
for energy, raw materials and semi-finished goods. Consumer
goods prices rose slightly.


.I 9557
.C
earn
.W
KUBOTA LTD <KUB.T> THIRD QUARTER TO JANUARY 15.
    TOKYO, March 13 -
    Group shr 53 yen vs 22
    Net profit 3.58 billion vs profit 1.47 billion
    Pretax profit 4.94 billion vs loss 248 mln
    Operating profit 5.36 billion vs profit 789 mln
    Sales 127.34 billion vs 130.22 billion
    Nine months ended January 15
    Group shr 134 yen vs 119
    Net 9.10 billion vs 8.03 billion
    Pretax 19.78 billion vs 14.77 billion
    Operating 17.35 billion vs 16.00 billion
    Sales 430.06 billion vs 446.26 billion


.I 9561
.C
gold
.W
JAPAN CABINET APPROVES BILL ON GOLD COIN ISSUES.
    TOKYO, March 13 - The cabinet has approved a bill making it
easier for the government to issue commemorative coins, a
Finance Ministry official said.
    The bill, which must still be approved by parliament, would
take effect in April 1988. It would allow the government to
issue 1,000, 5,000 and 10,000 yen coins without special
legislation, although higher-valued coins would still need a
special law, the official said. At present it can only issue
coins of 500 yen or less.


.I 9562
.C
earn
.W
SANDOZ AG <SANZ.Z> YEAR 1986.
    BASLE, March 13 - Group 1986 net profit 541 mln Swiss
francs vs. 529 mln
    Dividend 105 francs per 250 francs nominal share vs. 100,
21 francs per 50 franc nominal participation certificate vs 20
    Group Turnover 8.36 billion francs vs. 8.45 billion
    Cash Flow 956 mln francs vs. 941 mln
    Parent company net profit 153.8 mln francs vs. 135.3 mln


.I 9563
.C
palm-oil;veg-oil;
.W
INDIA IN COUNTERTRADE DEAL FOR MALAYSIAN PALM OIL.
    NEW DELHI, March 13 - India is to partially cover the cost
of its Malaysian palm oil imports through a countertrade deal
involving the construction of two bridges valued at 20 mln
dlrs, an Indian trade source told Reuters.
    He said Malaysia agreed to the oil-for-bridges deal in
October after India said it could no longer buy some 700,000
tonnes of palm oil a year because of its trade deficit.
    Malaysia has also agreed to barter palm oil for 30 mln dlrs
of hydroelectric equipment and is interested in countertrading
for Indian iron ore, wheat and other goods and services, he
said.


.I 9565
.C
earn
.W
****** ALUSUISSE GROUP 1986 NET LOSS 688 MLN SWISS FRANCS (LOSS 756 MLN).
Blah blah blah.

.I 9567
.C
trade
.W
BANK OF JAPAN CALLS FOR LONG-TERM EFFORTS ON TRADE.
    TOKYO, March 13 - The short-term effect of foreign exchange
rate movements in correcting international trade imbalances
appears to be waning, and long-term efforts are required to cut
Japan's chronic dependence on external demand, the Bank of
Japan said in a monthly report.
    Japan's trade surplus in nominal terms is likely to remain
high in the near future, the central bank said.
    Fundamental adjustments will be needed as long as Japan
hopes to benefit from a better international allocation of
resources and maintain the free trade system, it added.


.I 9569
.C
interest
.W
****** London - Floating rate note prices open sharply lower, dealers say.
Blah blah blah.

.I 9570
.C
earn
.W
ALUSUISSE <ALUZ.Z> YEAR 1986.
    ZURICH, March 13 - Net Loss 688 mln Swiss francs vs. Loss
756 mln
    Gross sales 5.93 billion vs. 8.51 billion
    Operating income 198 mln francs vs 256 mln
    Net extraordinary charges 592 mln vs 472 mln
    Note - Company plans 50 pct capital reduction, banks to
convert 300 mln francs of credit facilities to subordinated
loans. No immediate plans for capital increase. Company full
name Schweizerische Aluminium AG.


.I 9571
.C
crude
.W
******Opec deliberately under 15.8 mln barrel ceiling to defend price - Subroto.
Blah blah blah.

.I 9572
.C
acq
.W
COUNTY INCREASES TESCO STAKE IN HILLARDS.
    LONDON, March 13 - <County Ltd>, which is acting in concert
with Tesco Plc <TSCO.L> in its 151.4 mln stg for supermarket
chain operator <Hillards Plc>, has purchased 300,000 Hillards
ordinary shares at 316p per share, a statement said.
    These purchases, together with those made by County on 10
March, represent about 4.8 pct of Hillards issued ordinary
share capital, it said.
    Tesco's offer, made on March 10, values each Hillards
ordinary share at 305.5p, a 37.6 pct premium over the previous
day's  closing price. A cash alternative of 290.55p will be
made available.


.I 9573
.C
wpi
.W
S. AFRICAN PRODUCER PRICE INFLATION FALLS SHARPLY.
    PRETORIA, March 13 - South African year-on-year producer
price inflation fell to 14.9 pct in January against 16.4 pct in
December, Central Statistics Office figures show.
    The all items index (base 1980) rose a monthly 0.8 pct in
January to 233.9, after also rising 0.8 pct in December to
232.1.
    A year ago the index stood at 203.6 and year-on-year
producer price inflation at 22.2 pct.


.I 9575
.C
crude
.W
SUBROTO SEES OIL MARKET CONTINUING BULLISH.
    JAKARTA, March 13 - Indonesian Energy Minister Subroto said
he sees the oil market continuing bullish, with underlying
demand expected to rise later in the year.
    He told a press conference in Jakarta at the end of a
two-day meeting of South-East Asian Energy Ministers that he
saw prices stabilizing around 18 dlrs a barrel.
    "The sentiment in the market is bullish and I think it will
continue that way as demand will go up in the third or fourth
quarters," Subroto said.
    Asked about the prospect for oil prices, he said: "I think
they will stabilise around 18 dlrs, although there is a little
turbulence ..."
    "Of course the spot price will fluctuate, but the official
price will remain at 18 dlrs," he added.


.I 9577
.C
crude
.W
OPEC DEFENDING 18 DLR PRICE, SUBROTO SAYS.
    JAKARTA, March 13 - Indonesian Energy Minister Subroto said
OPEC is deliberately under its production ceiling of 15.8 mln
barrels to defend its 18 dlr a barrel price target.
    He told reporters at an energy conference in Jakarta that
OPEC had decided to maintain its price level of 18 dlrs.
    "We are deliberately defending the price, so OPEC production
is less than 15.8 (mln) at the moment," he stated.
    Asked if OPEC would increase production if prices went
above 18 dlrs a barrel, he said this would be decided at the
next OPEC meeting in June. "We will discuss the market situation
then," he added.
    He said a meeting of the OPEC Differentials Committee had
been postponed because "there is no need for the meeting."
    He did not elaborate. The committee had originally been due
to meet in Vienna this week.


.I 9578
.C
acq
.W
JAPAN REJECTS U.S. OBJECTIONS TO FAIRCHILD SALE.
    By Linda Sieg, Reuters
    TOKYO, March 13 - A Foreign Ministry official dismissed
arguments made by senior U.S. Government officials seeking to
block the sale of a U.S. Microchip maker to a Japanese firm.
    "They appear to be linking completely unrelated issues,"
Shuichi Takemoto of the Foreign Ministry's North American
Division told Reuters.
    U.S. Commerce Secretary Malcolm Baldrige has asked the
White House to consider blocking the sale of <Fairchild
Semiconductor Corp> to Japan's Fujitsu Ltd <ITSU.T>, U.S.
Officials said yesterday.
    Baldrige expressed concern that the sale would leave the
U.S. Military dependent on a foreign company for vital high
technology equipment. Pentagon officials said Defence Secretary
Caspar Weinberger also opposes to the sale.
    U.S. Officials have also said the sale would give Fujitsu a
powerful role in the U.S. Market for supercomputers while
Japan's supercomputer market remains closed to U.S. Sales.
    Takemoto said national security should not be an issue
since the planned purchase of Fairchild from its current owner,
Schlumberger Ltd <SLB>, does not include Fairchild's main
defence-related division.
    In addition, Takemoto said tension over the supercomputer
trade should not affect the sale as Fairchild does not make
supercomputers.
    Analysts noted that Fairchild does make sophisticated
microchips used in supercomputers. Fujitsu makes similar chips
and supplies them to U.S. Supercomputer makers, they said.
    Takemoto also dismissed U.S. Fears that the proposed
takeover would violate U.S. Antitrust law, saying "the purchase
would not result in Fujitsu monopolising the U.S. Semiconductor
market."
    Two separate issues appear to have come together to boost
pressure to block the purchase, industry analysts said.
    The move is in part an attempt to force Japan to open its
domestic market to more U.S. Supercomputer sales, they said.
    U.S. Officials have repeatedly charged that the Japanese
public sector is closed to U.S. Supercomputer sales despite
U.S. Firms' technological lead in the field.
    "The United States believes Japan will only react when
bullied, and this is a bullying ploy," Salomon Brothers Asia
analyst Carole Ryavec said.
    However, the analysts said more is at stake than
supercomputer sales as the U.S. Fears it is losing its vital
semiconductor industry to Japanese competitors.
    "The real issue is xenophobia in (the U.S.) Silicon Valley,"
said Tom Murtha of brokerage James Capel and Co.
    U.S.-Japanese tension over the semiconductor trade has
failed to subside despite recent efforts by Japan's Ministry of
International Trade and Industry (MITI) to get Japanese firms
to abide by a bilateral pact aimed at halting predatory pricing
and opening Japan's market.
    A MITI official said that while Japan is faithfully abiding
by the agreement, problems remain in halting the sale of
microchips in Europe and Southeast Asia at prices below those
set by the pact.
    "It is only a matter of time before we solve this problem,"
he told Reuters.
    Despite the furore, Fujitsu will proceed with talks on the
acquisition in line with the basic agreement reached with
Schlumberger last year, a Fujitsu spokeswoman told Reuters.


.I 9579
.C
money-fx
.W
BANK OF ENGLAND OFFERS EARLY HELP TO MONEY MARKET.
    LONDON, March 13 - The Bank of England said it invited an
early round of bill offers to help ease tight conditions in the
money market.
    The bank estimated today's liquidity shortage at about 1.10
billion stg.
    Bills maturing in official hands and the treasury bill
take-up would drain 1.21 billion stg from the system while a
rise in the note circulation and below target bankers' balances
would take out 265 mln and 180 mln respectively, the bank said.
    Against this, exchequer transactions would add a net 535
mln stg.


.I 9584
.C
wheat;grain;
.W
BRITISH WHEAT AREA DOWN, MINISTRY CENSUS SHOWS.
    LONDON, March 13 - A total of 1.886 mln hectares was sown
to wheat in Britain, excluding Northern Ireland, up to December
1, 1986 for the 1987 crop, a Ministry of Agriculture census
shows.
    It compares with 1.925 mln planted in the same period 1985.
    The barley area was unchanged at 952,000 ha, but oilseed
rape increased to 393,000 from 333,000 ha.


.I 9587
.C
dlr;money-fx;yen;
.W
******Miyazawa says current dollar/yen rate not necessarily satisfactory.
Blah blah blah.

.I 9590
.C
grain;rice;
.W
KAMPUCHEA SAYS RICE CROP IN 1986 INCREASED.
    BANGKOK, March 13 - Kampuchea harvested more than two mln
tonnes of rice paddy in 1986, up on the crops of the previous
two years, the official SPK news agency said yesterday.
    Diplomats said estimates put the 1985 harvest at less than
one mln tonnes, slightly up on 800,000 in 1984.
    SPK said Kampuchea planned to expand planting from 1.5 mln
to 1.93 mln hectares and boost rice paddy output to 2.5 mln
tonnes this calendar year.
    Two mln tonnes of paddy would produce some 1.3 mln tonnes
of milled rice, above the 1.25 mln tonnes Kampuchea says is the
minimum its 7.5 mln people need.


.I 9591
.C
cotton
.W
CHINA TRYING TO INCREASE COTTON OUTPUT, PAPER SAYS.
    PEKING, March 13 - China's 1987 cotton output must rise
above the 1986 level of 3.54 mln tonnes or supply will fall
short of increasing demand, the China Daily said.
    Demand in 1986 rose 10.9 pct over 1985.
    Output in 1986 fell from 4.15 mln tonnes in 1985 and a
record 6.2 mln in 1984, official figures show. The China Daily
attributed the decline to several factors, including less
favorable weather conditions and new state measures to restrict
cotton production after the 1984 build-up of stocks.
    According to Customs figures, cotton exports rose to
558,089 tonnes in calendar 1986 from 347,026 in 1985.
    To increase output quickly, the state will raise by 10 pct
the price it pays for cotton produced above and beyond quota
levels, the newspaper said. Its official purchasing agencies
will buy cotton produced in excess of that originally
contracted for, it added.
    The China Daily said all cotton growing areas in south
China should be maintained, and growing in the north should be
concentrated in Hebei, Shandong, Henan and Xinjiang.
    It called for comprehensive planning to coordinate
production of cotton with that of grain, edible oil and other
crops, but gave no more details.


.I 9592
.C
money-fx;yen;
.W
MIYAZAWA SAYS PRESENT YEN NOT NECESSARILY IDEAL.
    TOKYO, March 13 - Finance Minister Kiichi Miyazawa told a
parliamentary session the current dollar/yen exchange rate is
not necessarily satisfactory for the Japanese economy.
    Miyazawa said the Paris currency accord among six major
industrial nations last month does not necessarily mean the yen
should stay stable around current levels in the future.
    The Paris agreement was aimed at stopping a further rapid
fluctuation of exchange rates, he said.
    The accord stipulated that current rates reflect
fundamentals of the six nations - Britain, Canada, France,
Japan, the U.S. And West Germany.


.I 9593
.C
palm-oil;veg-oil;
.W
INDIA TOOK THREE CARGOES OF RBD OLEIN AT TENDER.
    LONDON, March 13 - The Indian State Trading Corporation
(STC) bought three cargoes of rbd palm olein at its vegetable
oil import tender yesterday, traders said. Late yesterday the
market was reporting it had bought one to two cargoes.
    The business comprised two 6,000 tonne cargoes for March
15/April 15 shipments at 355 dlrs per tonne cif, and 6,000
tonnes for May at 358 dlrs. The first two cargoes were on a
cash basis and the May position was transacted on a 30 pct
counter-trade basis, traders said.


.I 9595
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 478 MLN STG EARLY HELP.
    LONDON, March 13 - The Bank of England said it provided the
market with 478 mln stg of early assistance to help ease a
liquidity shortage it estimated at 1.10 billion stg.
    It made outright purchases of seven mln stg of band one
bank bills at 10-3/8 pct and 30 mln stg of band two bank bills
at 10-5/16 pct.
    In addition, it bought 294 mln stg of paper for resale to
the market on March 30 and 147 mln stg for resale on April 8,
in both cases at an interest rate of 10-7/16 pct.


.I 9599
.C
money-supply
.W
JAPAN PERSONAL SAVINGS SOAR IN 1986.
    TOKYO, March 13 - Japanese personal savings grew 10.3 pct
in 1986 from 1985 helped by a sharp increase in stock
investments by individuals, the Bank of Japan said.
    Outstanding savings on December 31, 1986 totalled 545,303
billion yen. Funds in investment trusts alone totalled 21,918
billion yen, up 37.4 pct from a year earlier.
    The outstanding balance also included deposits at banks and
post offices, up 7.4 pct to 337,867 billion yen, savings in the
form of insurance, up 18.6 pct to 111,431 billion, corporate
bond investments, up 7.8 pct to 46,867 billion, and investments
in trust banks, up 4.1 pct to 27,220 billion.


.I 9600
.C
earn
.W
ALUSUISSE SHARES SUSPENDED ON CAPITAL CUT NEWS.
    ZURICH, March 13 - Trading in shares of Schweizerische
Aluminium AG, Alusuisse, <ALUZ.Z> was suspended on the Zurich
stock exchange after today's announcement by the company that
it would cut its share capital by 50 pct, the bourse said.
    The bourse said trading would resume again on Monday.
    Alusuisse bearer shares closed at 490 francs yesterday,
registered shares at 170 francs and the participation
certificates at 45.50.


.I 9602
.C
crude
.W
PETROBRAS CANCELS OIL PURCHASE FROM SAUDI ARABIA.
    RIO DE JANEIRO, March 13 - Brazil's state oil company
Petrobras has cancelled a 40 mln dlr crude oil purchase from
Saudi Arabia after the Saudis refused to accept credit
guarantees from the Bank of Brazil and did not disclose
reasons, a Petrobras official said.
    Export director Carlos Santana told reporters the Saudis
were the first suppliers of oil to impose such conditions after
Brazil's decision to halt interest payment of its commercial
debts last month. The shipment of 2.2 mln barrels represents
two days of consumption.
    He said the Saudis reported they would no longer accept
letters of credit from the Bank of Brazil or even from Saudi
banks and that Brazil would have to obtain credit guarantees
from leading international banks.
    In February, Brazil had contracted to buy 125,000 bpd from
the Saudis until June. Saudi Arabia is Brazil's second biggest
oil supplier, with an average 115,000 bpd. Iraq is the main
supplier with 235,000 bpd. China comes third, with 58,000 bpd.
    "If the Saudis wish to stop our trade relationship...I am
sure that if they do, we will be getting dozens of offers from
elsewhere," Santana added.
    Santana said if the Saudis change their minds and decide to
respect the terms of the contract, then Petrobras will lift the
order to cancel the shipment.
    The Saudis had put similar conditions on a previous
shipment, he added. "We telexed them saying that if they
insisted, we would rather cancel the contract and buy the
product elsewhere," Santana said.
    After Petrobras threatened to cancel the contract, the
Saudis changed their minds and decided to accept the Bank of
Brazil's credit guarantees, he said.


.I 9603
.C
acq
.W
MANNESMANN CONSIDERING MAJORITY STAKE IN FICHTEL.
    DUESSELDORF, March 13 - A Mannesmann AG <MMWG.F> spokesman
said the company has lodged an application with the Federal
Cartel Office for approval of a possible majority stake in car
parts company <Fichtel und Sachs AG>.
    He described the application as a precautionary move and
said no agreement on buying a majority stake had yet been
reached. Until now Mannesmann has said only that it wanted to
buy a 37.5 pct stake in Fichtel from the heirs of Ernst Wilhelm
Sachs, the grandson of the firm's founder.
    The spokesman declined to say from whom it may buy the
other shares to create a majority stake in the firm.
    Fichtel's other principal shareholders are Commerzbank AG
<CBKG.F>, with 35.01 pct, and Salzgitter AG <ISLG.F>, with
24.98 pct. Spokesmen declined to comment directly on the
possibility of selling Fichtel shares to Mannesmann.
    Mannesmann said in January it hoped to take a 37.5 pct
stake in Fichtel's holding company Sachs AG in the first
quarter.
    Last week a spokesman said Mannesmann had a letter of
intent on the 37.5 pct stake but completion was being delayed
by legal questions surrounding the inheritance.


.I 9604
.C
earn
.W
SCHWEIZERHALLE FIRE HIT SANDOZ 1986 PROFITS.
    BASLE, Switzerland, March 13 - Sandoz AG <SANZ.Z> would
have reported a percentage rise in net profits "close to double
figures" rather than the actual two pct had it not been for
November's warehouse fire, a senior company official said.
    The official, who declined to be identified, told Reuters
Sandoz had made a substantial addition to reserves to cope with
the consequences of the accident at Schweizerhalle, which
caused severe pollution of the Rhine.
    Sandoz today reported without comment a rise in net profits
to 541 mln francs from the previous 529 mln and a five pct
increase in dividend to 105 francs per 250 franc nominal share.
    This year began well, with the performance in January and
February at least equal to the same period last year, the
official said.
    The company is expected to give fuller details of its
results at a news conference on April 22.
    Sandoz has insisted that it is adequately insured to cover
any liability arising from the accident.
    The official said the addition to reserves was to cover the
"one pct" of claims somehow not covered and any voluntary
gestures it wanted to compensate for the effects of pollution
from the fire.
    Sandoz has not given any figure for claims, which have been
flowing in from Switzerland and other countries bordering the
Rhine since the accident.
    However, the official said the final figure would be "much
less than that cited in earlier comments." He gave no further
details.
    In line with fellow chemical giant Ciba-Geigy <CIGZ.Z>,
which reported last month, Sandoz profit and turnover were also
hit by the falling dollar, the official said.
    Sales in local currency terms were up by 14 pct, with
market share increases in the United States and Japan. But this
was more than offset by a 15 pct negative foreign exchange
effect, which produced the reported one pct drop in turnover to
8.36 billion francs,the Sandoz official said.
    Net profit at Ciba-Geigy dropped by 21 pct to 1.16 billion
francs, while sales fell by 12 pct to 15.95 billion francs.
    The third major Swiss chemical company, F. Hoffmann-La
Roche and Co <HOFZ.Z> has not yet reported its results.


.I 9605
.C
earn
.W
ALUSUISSE SEES POSSIBLE BREAK-EVEN IN 1987.
    ZURICH, March 13 - Schweizerische Aluminimum AG <ALUZ.Z>
(Alusuisse) may be able to break even this year after cleansing
its balance sheet for 1986, chief executive Hans Jucker said.
    "The threshold of profitability has returned to the
foreseeable future," he said. "We expect already in 1987
approximately to break even. That presupposes, however, that
our industrial environment does not worsen."
    He said Alusuisse would no longer face the burden of past
losses.
    Alusuisse made a net loss of 688 mln Swiss francs in 1986
after a restated 756 mln loss in 1985.
    Gross sales were 5.93 billion francs after 8.51 billion and
net turnover 5.65 billion after 8.00 billion.
    Alusuisse had originally reported a 692 mln francs loss for
1985.
    But Jucker and Finance Director Hermann Haerri told a news
conference the new management installed a year ago had decided
to restate the previous five years' accounts to eliminate
rights on Australian bauxite previously in the books as an
asset.
    Together with other one-off charges, Alusuisse took an
gross extraordinary charge in 1986 of 698 mln francs, up from
472 mln in 1985.
    It also had 106 mln extraordinary income in 1986 remaining,
after provisions, from the sale of its Maremont Corp subsidiary
in the United States. There were no extraordinary gains in
1985.
    Jucker said the losses, plus those carried forward from
1985, had wiped out the company's remaining reserves and
exceeded legally allowed levels, forcing Alusuisse to adopt a
50 pct capital cut, to be approved by shareholders on April 22.
    Jucker said he knew shareholders would find this "radical
elimination of the mortgages of the past" painful, but said the
foundation had been laid for a successful new company strategy.
    Haerri said despite the losses, the company's liquidity was
strong. Bank debt had been cut by about one-third to 2.56
billion francs against the end-1985 level of 3.85 billion.
    Cash flow improved substantially to 323 mln francs from 111
mln and represented 5.7 pct of turnover against a mere 1.4 pct
in 1985.
    In addition, to reassure other creditors, Alusuisse had
arranged with three major Swiss banks -- Union Bank of
Switzerland <SBGZ.Z>, Swiss Bank Corp <SBVZ.Z> and Credit
Suisse <CRSZ.Z>, to convert 300 mln francs of credits into a
subordinated loan.
    The main sources of losses in 1986 were book losses and not
cash losses, Haerri said. Existing credit lines were used only
to a small extent, and the parent company had been granted a
new credit line of 200 mln francs from a consortium of Swiss
banks that would cover most of the loans falling due in 1987.
    Haerri said the company had been criticized for maintaining
bauxite rights as an asset, and so had restated the accounts.
    That left the 1985 account with a 756 mln franc loss
instead of 692 mln, 1984 with a 68 mln profit instead of 169
mln, 1983 with a 217 mln loss instead of 82 mln and 1982 with a
479 mln loss instead of 179 mln.
    The new accounts show 1985 with shareholders' equity of
1.15 billion francs instead of 1.75 billion, and similar
alternations were made for previous years.
    After 1986 losses, shareholder's equity stood at only 895
mln francs.


.I 9608
.C
earn
.W
JAPAN CORPORATE PROFITS IN LAST 1986 QUARTER UP.
    TOKYO, March 13 - Current profits of Japan's major firms in
the October-December quarter rose four pct from a year earlier
to 5,654 billion yen against a 2.6 pct year-on-year rise in the
preceding quarter, the Finance Ministry said.
    The improved earnings resulted mainly from a 22.5 pct
profit increase in non-manufacturing industries, supported by
an 88.7 pct rise for construction firms and a 138 pct gain in
real estate, according to a ministry survey.
    Total sales of the 15,308 firms with capital of 10 mln yen
or more which responded to the poll, fell one pct to 217,217
billion yen against a 1.2 pct fall the previous quarter.
    Current profits of manufacturing industries in the fourth
quarter dropped 13.7 pct to 2,394 billion yen against a 22.1
pct fall in the preceding quarter, the ministry said.
    Plant and equipment investments of all firms polled fell
3.9 pct to 8,004 billion yen, compared with a 1.4 percent fall
the previoius quarter.
    Ministry officials said the survey showed that the Japanese
economy is in a delicate stage in which it is hard to tell if
economic growth has stopped deteriorating or if the economy is
heading for a recovery.


.I 9609
.C
wheat;grain;
.W
U.S. LENDS SUDAN 57 MLN DLRS FOR WHEAT PURCHASES.
    KHARTOUM, March 13 - The U.S. Is to lend Sudan 57 mln dlrs
to buy 309,000 tonnes of wheat and 73,000 tonnes of wheat
flour, according to an agreement signed here.
    Under the agreement Sudan will receive 50 mln dlrs for the
commodities and the rest for sea transportation.
    The loan is repayable in 40 years, including a 10-year
grace period. Interest will be two pct for the grace period and
three pct over the repayment period of 30 years.


.I 9610
.C
alum
.W
ALUSUISSE PLANS FURTHER ALUMINIUM CAPACITY CUTS.
    ZURICH, March 13 - Schweizerische Aluminium AG <ALUZ.Z>
(Alusuisse) plans further drastic cuts in its aluminium
smelting capacity and more concentration of higher value-added
products, chief executive Hans Jucker said.
    Elaborating on plans disclosed in outline last September,
company officials said current smelting capacity of 390,000
tonnes a year would be cut to between 250,000 and 260,000
tonnes by 1989 or 1990. They did not say where cuts might be
made.
    Two years ago, before selling its Ormet Corp subsidiary in
the United States to local management and staff, Alusuisse had
an annual capacity of 800,000 tonnes.


.I 9611
.C
jobs
.W
******CANADA FEBRUARY UNEMPLOYMENT FALLS TO 9.6 PCT FROM JANUARY 9.7 PCT, STATISTICS CANADA SAID.
Blah blah blah.

.I 9613
.C
jobs
.W
CANADA FEBRUARY UNEMPLOYMENT 9.6 PCT.
    OTTAWA, March 13 - Canada's February unemployment rate,
seasonally adjusted, fell to 9.6 pct from 9.7 pct in January,
Statistics Canada said. The rate was 9.8 pct in February last
year.
    Seasonally adjusted employment in February was 11,777,000,
compared with 11,747,000 in January, while unemployment slipped
to 1,252,000 from 1,255,000.


.I 9616
.C
money-fx;yen;
.W
MIYAZAWA SAYS PRESENT YEN NOT NECESSARILY IDEAL.
    TOKYO, March 13 - Finance Minister Kiichi Miyazawa told a
parliamentary session the current dollar/yen exchange rate is
not necessarily satisfactory for the Japanese economy.
    Miyazawa said the Paris currency accord among six major
industrial nations last month does not necessarily mean the yen
should stay stable around current levels in the future.
    The Paris agreement was aimed at stopping a further rapid
fluctuation of exchange rates, he said.
    The accord stipulated that current rates reflect
fundamentals of the six nations - Britain, Canada, France,
Japan, the U.S. And West Germany.


.I 9621
.C
gold
.W
JAPAN CABINET APPROVES BILL ON GOLD COIN ISSUES.
    TOKYO, March 13 - The cabinet has approved a bill making it
easier for the government to issue commemorative coins, a
Finance Ministry official said.
    The bill, which must still be approved by parliament, would
take effect in April 1988. It would allow the government to
issue 1,000, 5,000 and 10,000 yen coins without special
legislation, although higher-valued coins would still need a
special law, the official said. At present it can only issue
coins of 500 yen or less.


.I 9622
.C
money-fx;yen;
.W
JAPAN MINISTER SAYS ABOUT 170 YEN APPROPRIATE.
    TOKYO, March 13 - International Trade and Industry Minister
Hajime Tamura told a parliamentary session Japan's small- and
medium-sized enterprises are seriously suffering from the yen's
rise and can only stand levels around 170 yen.
    He also said he still believes a dollar exchange rate level
plus or minus 10 yen from 170 yen would be within levels agreed
upon last month in Paris by six major industrial nations.
Finance ministers of Britain, Canada, France, Japan, the U.S.
And West Germany agreed on February 22 to cooperate in
stabilizing exchange rates around the current levels. The
dollar had closed here at 153.77 yen on February 20.


.I 9624
.C
ship
.W
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS.
    SAO PAULO, March 12 - Two small shipping companies have
reached a pay deal with striking seamen, but union leaders said
most of Brazil's 40,000 seamen were still on strike.
    A union spokesman in Rio de Janeiro said the seamen had
accepted a 120 pct pay offer from the companies, Globo and
Flumar, which have less than 200 employees each.
    The two-week strike comes as Brazil faces a debt crisis and
is delaying exports badly needed to earn foreign exchange.
    Labour Minister Almir Pazzionotto said the government will
not force a settlement of the strike, which was ruled illegal
last Friday.


.I 9625
.C
money-fx
.W
MIYAZAWA SAYS EXCHANGE RATES WILL STAY STABLE.
    TOKYO, March 13 - Finance Minister Kiichi Miyazawa told a
press conference he thinks exchange rates will remain stable
due to the currency accord reached in Paris last month by six
major industrialised nations but he did not say for how long.
    The dollar has hovered around 153 yen since the six agreed
to cooperate to bring about currency stability.
    Asked to comment on remarks by some U.S. Officials calling
for a further decline of the dollar, Miyazawa said only the
U.S. President and the U.S. Treasury Secretary can make
official statements about exchange rates.


.I 9626
.C
crude
.W
SUBROTO SEES OIL MARKET CONTINUING BULLISH.
    JAKARTA, March 13 - Indonesian Energy Minister Subroto said
he sees the oil market continuing bullish, with underlying
demand expected to rise later in the year.
    He told a press conference in Jakarta at the end of a
two-day meeting of South-East Asian Energy Ministers that he
saw prices stabilizing around 18 dlrs a barrel.
    "The sentiment in the market is bullish and I think it will
continue that way as demand will go up in the third or fourth
quarters," Subroto said.
    Asked about the prospect for oil prices, he said: "I think
they will stabilise around 18 dlrs, although there is a little
turbulence ..."
    "Of course the spot price will fluctuate, but the official
price will remain at 18 dlrs," he added.


.I 9627
.C
crude
.W
OPEC DEFENDING 18 DLR PRICE, SUBROTO SAYS.
    JAKARTA, March 13 - Indonesian Energy Minister Subroto said
OPEC is deliberately under its production ceiling of 15.8 mln
barrels to defend its 18 dlr a barrel price target.
    He told reporters at an energy conference in Jakarta that
OPEC had decided to maintain its price level of 18 dlrs.
    "We are deliberately defending the price, so OPEC production
is less than 15.8 (mln) at the moment," he stated.
    Asked if OPEC would increase production if prices went
above 18 dlrs a barrel, he said this would be decided at the
next OPEC meeting in June. "We will discuss the market situation
then," he added.
    He said a meeting of the OPEC Differentials Committee had
been postponed because "there is no need for the meeting."
    He did not elaborate. The committee had originally been due
to meet in Vienna this week.


.I 9630
.C
trade
.W
BANK OF JAPAN CALLS FOR LONG-TERM EFFORTS ON TRADE.
    TOKYO, March 13 - The short-term effect of foreign exchange
rate movements in correcting international trade imbalances
appears to be waning, and long-term efforts are required to cut
Japan's chronic dependence on external demand, the Bank of
Japan said in a monthly report.
    Japan's trade surplus in nominal terms is likely to remain
high in the near future, the central bank said.
    Fundamental adjustments will be needed as long as Japan
hopes to benefit from a better international allocation of
resources and maintain the free trade system, it added.


.I 9632
.C
grain;rice;
.W
BURMESE PADDY PRODUCTION LOWER IN 1986/87.
    RANGOON, March 13 - Burma's paddy production fell to 729.4
mln baskets in fiscal year 1986-1987 (to end March) from 737.3
mln in 1985-1986, a cabinet report to parliament said.
    A basket is a local measure equal to 46 lbs.
    Paddy output in 1984-1985 was 699.1 mln baskets, it said.
    Burma's "Green Revolution" sparked by the introduction of
high-yield variety paddy strains in the mid-1970s appears to
have hit a plateau with production levelling off over the past
two years, economists said.


.I 9633
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 168 MLN STG HELP.
    LONDON, March 13 - The Bank of England said it provided the
money market with a further 168 mln stg of assistance to help
offset a shortage it now estimated at 1.05 billion stg, revised
down from 1.10 billion.
    It bought 21 mln stg of bank bills outright, 20 mln in band
one at 10-3/8 pct and one mln in band two at 10-5/16 pct. In
addition, it bought 98 mln stg of bills for resale on March 30
and 49 mln stg for resale April 8 at an interest rate of
10-7/16 pct. All these rates are the same as for today's
earlier help.
    So far today, the bank has provided the market with
assistance worth 646 mln stg.
    The bank also announced the rates applicable to temporary
lending facilities rolled over today.
    The average mid-market rate for lending rolled over for one
week is 10-15/16 pct and for two weeks 10-5/8 pct.


.I 9642
.C
earn
.W
AEP INDUSTRIES INC <AEPI> 1ST QTR JAN 31 NET.
    MOONACHIE, N.J., March 13 -
    Shr 19 cts vs 32 cts
    Net 586,000 vs 802,000
    Sales 14.2 mln vs 15.1 mln
    Avg shrs 3,006,372 vs 2,506,250


.I 9645
.C
earn
.W
D.H. HOLMES CO LTD <HLME> 4TH QTR NET.
    NEW ORLEANS, March 13 -
    Shr 39 cts vs 1.34 dlrs
    Net 1,392,000 vs 4,686,000
    Sales 81.9 mln vs 81.7 mln
    Year
    Shr 10 cts vs 97 cts
    Net 355,000 vs 3,375,000
    Sales 270.4 mln vs 272.8 mln
    NOTE: Share adjusted for three pct stock dividend in
January 1987.
    Pretax net profits 3,052,000 dlrs vs 4,498,000 dlrs in
quarter and loss 572,000 dlrs vs profit 2,922,000 dlrs in year.
    Latest year net includes pretax gains of 166,000 dlrs in
quarter and 4,420,000 dlrs in year from pension plan
reversions.
    Prior year net includes gain 1,549,000 dlrs on sale of
property.


.I 9646
.C
acq
.W
FIRST BOSTON <FBC> STARTS ALLEGHENY <AG> BID.
    NEW YORK, March 13 - First Boston Inc said it has started
its previously-announced tender offer for all common shares,
2.19 dlr cumulative preference shares and 11.25 dlr convertible
preferred shares of Allegheny International Inc at 24.60 dlrs,
20.00 dlrs and 87.50 dlrs respectively.
    In a newspaper advertisement, the company said the offer
and withdrawal rioghts will expire April Nine unless extended.
The offer is conditioned on receipt of at least a majority of
Allegheny voting power on a fully diluted basis and on receipt
of at least two thirds each of the preference and preferred
shares.
    A merger approved by the Allegheny board in which remaining
common, preference and preferred shares would be acquired at
the tender prices is to follow the offer.
    Receipt of the minimum amounts under the offer would give
First Boston sufficient voting power to assure approval of the
merger without the affirmative vote of any other shareholder,
the company said.


.I 9648
.C
ship
.W
COURT PUTS INJUNCTION ON DUTCH PORT REDUNDANCIES.
    ROTTERDAM, March 13 - Employers in Rotterdam port's
strike-hit general cargo sector have been served with an
injunction until May 7 preventing them from continuing with
plans for 350 redundancies this year, an employers'
organisation spokesman said.
    An Amsterdam court yesterday ruled there had been a legal
fault in the employers' redundancy procedure.
    The employers' spokesman said they were likely to restart
the redundancy procedure afresh next week in an attempt to
pre-empt the May 7 final court ruling.
    Port and transport union representative Paul Rosenmuller
described the court ruling as a victory for the union, but
added there was still a long way to go before the dispute that
has hit the general cargo sector for the past eight weeks was
resolved.
    Rosenmuller said there would be a meeting of the sector's
4,000 workers this afternoon to decide on further action in the
campaign of lightning strikes that began on January 19 in
protest at planned redundancies of 800, starting with 350 this
year.
    The employers said there were no immediate plans for
meetings with the union either on the proposed redundancies or
on a new work practice agreement in the sector.
    Meanwhile, discussions on a new work agreement in the
port's grain sector, due to resume next week, are stalemated,
although agreement could be close in the coal and ore sector,
the employers' spokesman added.


.I 9652
.C
ship
.W
STRIKE TO CLOSE NEW ZEALAND PORTS ON MONDAY.
    WELLINGTON, March 13 - Harbour workers said they will
strike for 24 hours on Monday, effectively closing all New
Zealand's ports.
    The strike is over deadlocked wage negotiations.
    A Harbour Employees Workers' Union spokesman told reporters
there will be no ship movements in and out of ports from
midnight on Sunday (1200 hrs GMT March 15).
    There will be no loading or unloading involving harbour
board workers and the Cook Strait ferries, which provide a
vital link between New Zealand's North and South Islands, will
not run, he added.


.I 9653
.C
ship
.W
TWO BRAZILIAN SHIPPING FIRMS SETTLE WITH STRIKERS.
    SAO PAULO, March 13 - Two small shipping companies reached
a pay deal with striking seamen late yesterday, but union
leaders said most of Brazil's 40,000 seamen were still on
strike.
    A union spokesman in Rio de Janeiro said the seamen had
accepted a 120 pct pay raise offer from the companies, Globo
and Flumar, which have less than 200 employees each.
    The two-week strike comes as Brazil faces a debt crisis and
is delaying exports badly needed to earn foreign exchange.
    Labour Minister Almir Pazzionotto said the government will
not force a settlement of the strike, which was ruled illegal
last Friday.


.I 9654
.C
cpi
.W
PORTUGUESE FEBRUARY CONSUMER PRICES RISE ONE PCT.
    LISBON, March 13 - Portugal's consumer prices rose one pct
last month after a 1.2 pct increase in January and a 1.3 pct
rise in February 1986, the National Statistics Institute said.
    The consumer price index (base 1976) rose to 761.3 from
753.7 in January and compared with 695.4 in February 1986.
    This gave a year-on-year February inflation rate of 9.5 pct
against 9.8 pct in January and 12.6 pct in February 1986.
    Measured as an annual average rate, inflation in February
was 11.1 pct compared with 11.4 pct in January.  The government
forecasts annual average inflation of about eight pct this
year.


.I 9655
.C
crude
.W
WEATHER CLOSES ALEXANDRIA PORT, SUMED OIL TERMINAL.
    ALEXANDRIA, Egypt, March 13 - Strong winds and high seas
forced the closure of Egypt's main port of Alexandria and a
nearby oil terminal, port officials said.
    Tanker loading at the Suez-Mediterranean Arab Petroleum
Pipelines Co in Sedi Kerir, southwest of here, stopped and
officials said five tankers were at anchorage awaiting improved
weather.


.I 9656
.C
wpi
.W
******U.S. PRODUCER PRICES ROSE 0.1 PCT IN FEB AFTER 0.6 PCT JAN RISE.
Blah blah blah.

.I 9657
.C
wpi
.W
U.S. PRODUCER PRICES RISE 0.1 PCT IN FEBRUARY.
    WASHINGTON, March 13 - The U.S. Producer Price Index for
finished goods rose 0.1 pct on a seasonally adjusted basis in
February, the Labor Department said.
    The increase came after a 0.6 pct increase in producer
prices in January.
    Higher energy prices were primarily responsible for the
increase in February, though they rose at a slower pace than
they had in January, the department said.
    The finished goods index was up 0.1 pct from its February,
1986 level.
    Before seasonal adjustment, the index for finished goods
stood at 292.3 over its 1967 base of 100.
    Among finished goods, the index for energy products rose
four pct in February after a 9.8 pct increase in January. But
price increases slowed sharply for gasoline and home heating
oil, the department said.
    There were some price declines, including a 3.4 pct fall
for passenger cars and 1.3 pct for light trucks from January
levels. This reflected expanded factory-financed rebates and
discount loan programs, the department said.
    Before seasonal adjustment, the index for finished goods
stood at 292.3 over its 1967 base of 100.
    Among finished goods, the index for energy products rose
four pct in February after a 9.8 pct increase in January. But
price increases slowed sharply for gasoline and home heating
oil, the department said.
    There were some price declines, including a 3.4 pct fall
for passenger cars and 1.3 pct for light trucks from January
levels. This reflected expanded factory-financed rebates and
discount loan programs, the department said.
    The index for consumer foods fell 0.5 pct after a 1.8
pct drop in January as vegetables, pork and coffee cost less.
The index for intermediate goods rose 0.5 pct following a sharp
0.9 pct rise in January.
    The department said that energy prices again were the main
reason, with the index for intermediate energy up 2.7 pct.
    Gasoline and diesel fuel prices were about five pct higher,
half the 10 pct jump recorded in January.
    The durable manufacturing materials index edged down 0.1
pct last month after jumping 1.0 pct in January as prices for
steel, precious metals and copper stabilized.
    The department said lead and zinc prices fell, while
hardwood lumber and cement cost more. The crude materials index
rose 1.8 pct in February after a 2.9 pct rise in January. Crude
energy materials were up 2.6 pct, much less than the 10 pct
rise in January. Crude petroleum prices rose 4.4 pct last month
after a sharp 19.7 pct rise in January.
    Price rises accellerated for logs and timber and tobacco,
but fell for cotton, metal ores and copper and aluminum scrap.
    Among finished goods, gasoline rose 5.5 pct after a 15.7
pct January increase, and fuel oil was up three pct in February
after an 18.0 pct increase in January.


.I 9658
.C
earn
.W
FIRST FARWEST CORP <FFWS> 4TH QTR LOSS.
    PORTLAND, Ore., MArch 13 -
    Shr loss 4.22 dlrs vs profit nil
    Net loss 5,568,000 vs profit 11,000
    Revs 42.2 mln vs 37.5 mln
    Year
    Shr loss 3.74 dlrs vs profit 1.02 dlrs
    Net loss 4,898,000 vs profit 1,384,000
    Revs 139.0 mln vs 132.7 mln
    NOTE: 1986 net both periods includes 1,603,000 dlr loss
from discontinued operations due to settlement of lawsuit and
redemption of preferred.


.I 9660
.C
earn
.W
HEMOTEC INC <HEMO> 4TH QTR NET.
    ENGLEWOOD, Colo., March 13 -
    Shr one ct vs two cts
    Net 22,000 vs 58,000
    Sales 951,000 vs 901,000
    Year
    Shr four cts vs 12 cts
    Net 88,000 vs 293,000
    Sales 4,014,000 vs 3,533,000
    NOTE: Net includes tax credits of 46,000 dlrs vs 84,000
dlrs in quarter and credit 19,000 dlrs vs provision 37,000 dlrs
in year.


.I 9661
.C
acq
.W
SERVICE CONTROL BIDS FOR AMERICAN SERVICE.
    NEW YORK, March 13 - <Service Control Corp> said it has
started a tender offer for all shares of <American Service
Corp> at 37 dlrs each.
    In a newspaper advertisement, the company said the offer
and withdrawal rights expire April Nine unless extended.  The
American Service board has approved the offer, which is to be
followed by a merger at the same price.
    Service Control said the offer is conditioned on receipt of
at least 534,806 shares.  It said holders of 534,819 shares
have agreed to tender their shares under the offer and have
granted Service Control an option to buy them at 37 dlrs each.


.I 9664
.C
earn
.W
DREYER'S GRAND <DRYR> RESTATES 4RTH QUARTER LOSS.
    OAKLAND, Calif., March 13 - Dreyer's Grand Ice Cream said
it has restated its previously-reported fourth quarter loss to
904,000 dlrs or 13 cts per share because it has now decided to
take a charge of about 700,000 dlrs to provide for losses of
Midwest Distributing Co, which was acquired December 30.
    Dreyer's said the restatement reduces net income for the
full year to 5,914,000 dlrs or 80 cts per share.
    The company said the restatement does not indicate any
change in its thinking on the benefits of the acquisition or
future prospects in Midwest Distributing's markets.
    Dreyer's Grand previously reported 1986 earnings of
6,614,000 dlrs or 90 cts per share, down from 7,960,000 dlrs or
1.08 dlrs a share.  For the first nine months of the year, it
had earned 6,818,000 dlrs or 92 cts per share, up from
6,354,000 dlrs or 86 cts a share a year before.


.I 9668
.C
earn
.W
<TURBO RESOURCES LTD> YEAR NET.
    CALGARY, Alberta, March 13 -
    Oper shr nine cts vs three cts
    Oper shr diluted eight cts vs three cts
    Oper net 15 mln vs five mln
    Revs 518 mln vs 622 mln
    NOTE: Oper net excludes extraordinary income of seven mln
dlrs vs four mln on tax loss carryforward, offset by writedowns
of three mln dlrs vs eight mln on U.S. oil and gas properties
and other assets.



.I 9669
.C
earn
.W
VW HAS NO COMMENT ON SEAT LOSS REPORTS.
    WOLFSBURG, West Germany, March 13 - A Volkswagen AG
<VOWG.F> spokesman said the group had no immediate comment on
reports of greater than expected losses at its Spanish
subsidiary Sociedad Espanola de Automoviles de Turismo (SEAT).
    German newspapers reported that Werner Schmidt, SEAT
supervisory board chairman, had told journalists that SEAT
losses for 1986 were around 27 billion pesetas, or about 386
mln marks, almost double original expectations.
    According to the Boersen-Zeitung newspaper, Schmidt said VW
would invest 42 billion pesetas in SEAT this year and in the
years to 1995 would spend 462 billion on its new Spanish unit.


.I 9671
.C
acq
.W
******BENEFICIAL CORP TO SELL WESTERN NATIONAL LIFE FOR 275 MLN DLRS.
Blah blah blah.

.I 9672
.C
earn
.W
******GENERAL MILLS INC 3RD QTR SHR 64 CTS VS 52 CTS.
Blah blah blah.

.I 9674
.C
acq
.W
******CAESARS WORLD INC SAID BOARD REJECTS MARTIN SOSNOFF TENDER.
Blah blah blah.

.I 9676
.C
interest
.W
****** Top discount rate at U.K. Bill tender falls to 9.3657 pct.
Blah blah blah.

.I 9678
.C
earn
.W
<MDI MOBILE DATA INTERNATIONAL INC> YEAR NET.
    VANCOUVER, British Columbia, March 13 -
    Oper shr 63 cts vs 47 cts
    Oper shr diluted 56 cts vs 38 cts
    Oper net 3,284,955 vs 2,176,925
    Revs 31.6 mln vs 23.0 mln
    NOTE: Current oper net excludes writedown of 344,039 dlrs,
or seven cts a share, on unidentified investment.


.I 9681
.C
money-fx
.W
UK MONEY MARKET DEFICIT REVISED TO ONE BILLION STG.
    LONDON, March 13 - The Bank of England said it has revised
its estimate of today's shortfall to one billion stg, before
taking account of 646 mln stg morning assistance.


.I 9682
.C
nickel
.W
OUTOKUMPU TO CLOSE NICKEL REFINERY DURING SUMMER.
    HELSINKI, March 13 - The Finnish metal and mining group
Outokumpu Oy said it will close its nickel refinery at
Harjavalta in central Finland for six weeks in July and August
this year due to current low prices on the nickel market.
    "We consider nickel prices as bad at the moment, although
they have been rising slightly since January," refinery sales
manager Pekka Purra said.
    He said the closure will mean a drop in production of 3,000
tonnes in 1987 from last year's output of 17,800 tonnes. The
closure was also a move to cut labour costs as no extra staff
have to be employed during holidays to keep the plant open.


.I 9683
.C
ipi
.W
******U.S. FEB INDUSTRIAL PRODUCTION ROSE 0.5 PCT AFTER REVISED 0.1 PCT JAN GAIN.
Blah blah blah.

.I 9684
.C
ipi
.W
U.S. FEB INDUSTRIAL PRODUCTION ROSE 0.5 PCT.
    WASHINGTON, March 13 - U.S. industrial production rose 0.5
pct in February after a revised 0.1 pct increase in January,
the Federal Reserve Board said.
    The Fed previously said industrial production rose 0.4 pct
in January.
    The Fed said the February gain was dominated by a sharp
rise in motor vehicle production, which boosted output of both
consumer goods and business equipment. Industrial production
stood at 127.3 pct of the 1977 average in February and was up
1.7 pct from a year ago, the Fed said.
    The Fed also revised the December industrial production
figure to a gain of 0.5 pct from 0.3 pct originally reported.
    Manufacturing output rose 0.5 pct in February after a 0.1
pct increase in January and included gains of 0.8 pct in
durables and 0.1 pct in non-durables, the Fed said.
    Manufacturing was 2.4 pct above the year ago level.
    Production of auto assemblies rose to an annual rate of 8.3
mln units last month from a January rate of 7.5 mln units.
    Output of consumer goods rose 0.6 pct after falling 0.3 pct
in January and output of consumer durables was up 2.1 pct in
February after falling by 2.0 pct in January.
    Business equipment production rose 1.0 pct in February,
reflecting more output of autos and trucks for business use and
a recovery from strikes in farm equipment industries, the Fed
said.
    Mining output rose 0.1 pct after a 1.6 pct increase in
January, but was still six pct lower than a year ago.
    Utilities output rose 0.7 pct in February after a 1.2 pct
rise in January.
    Output of defense and space equipment was up 0.4 pct, the
same as in January, and 6.2 pct higher than a year ago.
    Output of construction supplies rose 0.2 pct in February
after a 1.5 pct January rise.
    Materials output increased by 0.2 pct last month, the
fourth consecutive monthly increase after declining throughout
much of 1986. The recent strength in materials has been
concentrated in textiles, paper and chemicals, the Fed said.
    Output of home goods was up 0.3 pct in February and the Fed
said production of items like appliances and furniture
continued strong last month.


.I 9685
.C
acq
.W
CAESARS WORLD <CAW> REJECTS SOSNOFF'S OFFER.
    LOS ANGELES, March 13 - Caesars World Inc said its board
unanimously rejected a 28 dlr a share takeover offer by New
York investor Martin T. Sosnoff.
    Caesars said Sosnoff's offer to by all its outstanding
shares of common stock was inadequate and not in the best
interests of its shareholders.
    The company recommended that shareholders reject Sosnoff's
offer, made through his <MTS Acquisition Corp>, and not tender
any of their shares.
    Caesars said it will explore a variety of alternative
transactions but did not elaborate.
    Caesars, in a brief statement, did not say whether it would
seek to buy back its shares held by Sosnoff.
    A Caesars spokesman said the company would not comment
further on its decision.
    On Wednesday, Sosnoff told the Securities and Exchange
Commission that he controls 13.6 pct of the company's stock.
    Sosnoff also informed the SEC that Caesars had offered to
buyout his holdings several times during the past year.
    No one from the Sosnoff organization was immediately
available for comment.
    Caesars said its financial advisor, Drexel Burnham Lambert
Inc, had determined that Sosnoff's offer was financially
inadequate for shareholders other than Sosnoff.
    The company said other factors it considered in rejecting
the offer were its financial condition, future prospects,
current market conditions and the numerous conditions on which
Sosnoff's bid was conditioned.
    Caesars' stock opened up 1/8 point at 28-1/8. That is 1/8
point above Sosnoff's offer price.


.I 9686
.C
earn
.W
ESSELTE AB <ESB.ST> 1986 RESULTS.
    STOCKHOLM, March 13 - Group profit after net interest items
742 mln crowns vs 741 mln.
    Sales 11.25 billion crowns vs 10.22 billion.
    Estimated profit per share 10 crowns vs 9.20.
    Proposed dividend four crowns vs 3.38.


.I 9687
.C
acq
.W
CONSECO <CNC> TO BUY BENEFICIAL <BNL> UNIT.
    PEAPACK, N.J., March 13 - Conseco Inc said it has signed a
definitive agreement to acquire Western National Life Insurance
Co from Beneficial Corp for 275 mln dlrs in cash.
    Western National had assets of 1.9 billion dlrs at the end
of 1986 and 1986 premium and investment revenues.  Western
issues structured settlement annuities for the settlement of
personal injury and damage claims and sells tax-sheltered
annuities.
    The acquisition is subject to regulatory approval.
    Conseco said the acquisition would raise its assets to 2.7
billion dlrs and annual revenues to about 800 mln dlrs.
    Beneficial had previously announced plans to leave the
insurance business.  On March Three, it said it agreed in
principle to sell its American Centennial Insurance Co,
Beneficial International Insurance Co, Consolidated MArine and
General Insurance Co Ltd, Consolidated Life Assurance Co Ltd,
Wesco Insurance Co and Service General Insurance Co
subsidiaries to a management-led group for 98 mln dlrs in notes
mostly contingent on performance of the units and 10 mln dlrs
in cash.
    Conseco had 1986 operating earnings of 4,968,000 dlrs on
revenues of 84.9 mln dlrs.


.I 9688
.C
earn
.W
GREAT AMERICAN BANCORP <GRTB> 4TH QTR NET.
    CENTURY CITY, Calif., March 13 -
    Shr profit seven cts vs loss 24 cts
    Net profit 151,000 vs loss 523,000
    12 mths
    Shrs loss 1.70 dlrs vs loss 44 cts
    Net loss 3,670,000 vs loss 947,000
    Assets 99.7 mln vs 102.6 mln
    Deposits 91.1 mln vs 90.6 mln
    Loans 44.3 mln vs 51.7 mln


.I 9689
.C
earn
.W
KONINKLIJKE NEDERLANDSE PAPIERFABRIEKEN <KNPN.AS>.
    MAASTRICHT, Netherlands, March 13 -
    Net 1986 profit 132.6 mln guilders vs 117.3 mln
    Turnover 1.6 billion guilders vs same
    Earnings per share 16.00 guilders vs 15.80 on capital
expanded by 11 pct to 8.21 mln outstanding shares.
    Proposed dividend per share 5.50 guilders vs 5.00
    Note - Full company name is Koninklijke Nederlandse
Papierfabrieken NV.


.I 9690
.C
earn
.W
GENERAL MILLS INC <GIS> 3RD QTR FEB 22 NET.
    MINNEAPOLIS, March 13 -
    Shr 64 cts vs 52 cts
    Net 56,900,000 vs 46,400,000
    Sales 1.31 billion vs 1.13 billion
    Avg shrs 88.2 mln vs 89.3 mln
    Nine mths
    Shr 2.09 dlrs vs 1.59 dlrs
    Net 185,900,000 vs 141,300,000
    Sales 3.84 billion vs 3.36 billion
    Avg shrs 88.9 mln vs 89.1 mln
    NOTE: 1986 period ended February 23
    Prior year amounts restated to reflect discontinued
furniture operations
    Earnings include gains from discontinued operations of 1.5
mln dlrs, or two cts a share in the 1986 quarter and gains of
8.5 mln dlrs, or 10 cts a share in the fiscal 1987 nine months
vs 3.0 mln dlrs, or four cts a share a year earlier


.I 9691
.C
ship;grain;
.W
UNOFFICIAL STRIKE HITS ROTTERDAM GRAIN SECTOR.
    ROTTERDAM, March 13 - About 220 men in Rotterdam port's
grain sector stopped work this afternoon in an unofficial
protest at the slow progress of negotiations over a new work
practice agreement, a spokesman for the port and transport
union FNV said.
    Negotiations between the union and employers, which are due
to resume early next week, are currently stalemated with the
union refusing to accept sweeping changes in working hours and
practices in return for a 1.5 pct pay increase.
    The FNV spokesman said the action did not yet have official
backing, but added that next week matters might be different.


.I 9692
.C
earn
.W
NOVELL <NOVL> SETS PAYMENT DATE FOR STOCK SPLIT.
    PROVO, Utah, March 12 - Novell Inc said the dividend to
effect its previously announced two-for-one stock split will be
distributed April 13.
    As stated at the time of the original announcement, the
company said the payment will be made to holders of record
March 31.


.I 9693
.C
earn
.W
NORTEK INC <NTK> SETS QUARTERLIES.
    PROVIDENCE, March 13 -
    Qtly div common 2-1/2 cts vs 2-1/2 cts prior
    Qtly div special common one ct vs one ct
    Pay May Eight
    Record April Three


.I 9694
.C
ship
.W
DUTCH PORT UNION CALLS OFF GENERAL CARGO STRIKES.
    ROTTERDAM, March 13 - Dutch port and transport union, FNV,
has called off the strikes against planned redundancies that
have hit Rotterdam port's general cargo sector for the past
eight weeks, strike leader Paul Rosenmuller told a mass
meeting.
    The decision followed yesterday's ruling by an Amsterdam
court preventing the sector's employers continuing with current
plans for 350 redundancies this year until the court sits again
on May 7, Rosenmuller told a meeting of the general cargo
sector's 4,000 workers today.
    The court ruled the employers had made a mistake in the
complicated legal procedure for obtaining official permission
for the redundancies, and therefore could not proceed.
    "There is no need to continue the strikes for the moment now
the immediate pressure of redundancies has been lifted,"
Rosenmuller said.
    But he added that the strikes, which began on January 19 in
protest against plans for 800 redundancies by 1990, could
resume at any time before May 7 if the employers made any moves
to re-apply for permission for the redundancies.
    SVZ labour relations manager Gerrard Zeebregts said they
would be meeting their lawyers today with a view to re-applying
for this permission next week in the hope of gaining approval
for the redundancies within a month.


.I 9695
.C
earn
.W
******NOVA AN ALBERTA CORP 4TH QTR SHR LOSS 15 CTS VS LOSS 1.09 DLRS.
Blah blah blah.

.I 9696
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 195 MLN STG HELP.
    LONDON, March 13 - The Bank of England said it provided the
money market with a further 195 mln stg assistance during the
afternoon.
    This brings total help today to 841 mln stg compared with a
liquidity shortage it has estimated at a revised one billion
stg.
    The Bank bought 176 mln stg of band two bank bills outright
at 10-5/16 pct and 13 mln stg of band one bank bills at 10-3/8
pct. In addition, it bought four mln stg of bills for resale to
the market on March 30 and two mln stg for resale on April 8,
at a common interest rate of 10-7/16 pct.


.I 9698
.C
coffee
.W
UGANDA RE-ROUTES COFFEE EXPORTS THROUGH KISUMU.
    NAIROBI, March 13 - Long delays at the railway crossing on
the Kenyan border have led Uganda to re-route its coffee
exports through a ferry link with the Kenyan port of Kisumu
across Lake Victoria, Ugandan officials based in Kenya said.
    Uganda has a direct rail link with the Kenyan port of
Mombasa through which it conducts 70 pct of its external trade
but there is a chronic shortage of railway wagons, they said.
    Customs at Kisumu take less than a day compared with two to
three at the Malaba rail border crossing, a Ugandan Railways
official said. "Malaba is now handling only 10 pct of the trade
and all the coffee and oil goes through Kisumu," he said.
    However, an accident recently damaged the wagon ferry which
plies between Kisumu and the Ugandan port of Jinja, causing
bottlenecks on the lake route too.
    Sources at the Coffee Marketing Board in Kampala reported
delays in coffee export shipments last January due to
congestion on the lake ferries.
    Coffee accounts for about 95 pct of Uganda's export
earnings and last November President Yoweri Museveni ordered
all coffee shipments to be carried by rail in order to avoid
the higher costs of road haulage.


.I 9700
.C
wpi
.W
NORWAY'S WHOLESALE PRICES RISE 0.5 PCT IN FEBRUARY.
    OSLO, March 13 - Norway's wholesale price index (base 1981)
rose 0.5 pct in February to 136.0 after a 1.7 pct rise in
January to 135.0, the Central Bureau of Statistics said.
    The year on year increase for February was 7.9 pct compared
with 5.7 pct in January and 2.2 pct in February 1986, it added.


.I 9701
.C
earn
.W
HEALTHCO INTERNATIONAL INC <HLCO> 4TH QTR NET.
    BOSTON, March 13 -
    Oper shr 51 cts vs 43 cts
    Oper shr diluted 47 cts vs 43 cts
    Oper net 3,182,000 vs 2,462,000
    Revs 101.7 mln vs 87.0 mln
    Avg shrs 6,246,664 vs 5,671,607
    Avg shrs diluted 7,501,209 vs 5,671,607
    Year
    Oper shr 1.84 dlrs vs 1.48 dlrs
    Oper shr diluted 1.76 dlrs vs 1.48 dlrs
    Oper net 11.5 mln vs 8,312,000
    Revs 349.2 mln vs 307.0 mln
    Avg shrs 6,238,720 vs 5,616,019
    Avg shrs diluted 6,969,389 vs 5,616,019
    NOTE: 1986 net both periods excludes charge 1,205,000 dlrs
from distribution system restructuring costs.
    1986 year net excludes 440,000 dlr debt retirement gain and
gain 12.8 mln dlrs from sale of HPSC Inc <HPSC> stock.
    1986 net both periods includes charge 768,000 dlrs from
reversal of investment tax credits.


.I 9704
.C
earn
.W
WILFRED AMERICAN EDUCATIONAL CORP <WAE> 4TH QTR.
    NEW YORK, March 13 -
    Shr two cts vs 36 cts
    Net 182,000 vs 3,433,000
    Revs 20.1 mln vs 21.4 mln
    Year
    Shr 71 cts vs 98 cts
    Net 6,706,000 vs 9,275,000
    Revs 85.7 mln vs 75.4 mln
    NOTE: 1985 net both periods includes gain 743,000 dlrs from
cancellation of debt.
    1986 quarter net includes reversal of 216,000 dlrs in
investment tax credits.


.I 9705
.C
earn
.W
AL LABORATORIES INC <BMD> 4TH QTR NET.
    FORT LEE, N.J., March 13 -
    Shr 10 cts vs 14 cts
    Net 913,000 vs 1,273,000
    Revs 37.7 mln vs 24.7 mln
    12 mths
    Shr 61 cts vs 60 cts
    Net 5,529,000 vs 5,448,000
    Revs 123.6 mln vs 96.8 mln
    NOTE: net for qtr and yr 1986 and 1985 adjusted to reflect
retroactive effect of three-for-two stock splits distributed to
shareholders in July 1986 and August 1985.
    1986 net includes results of operations of Parmed
Pharmaceuticals Inc, acquired May 29, 1986.


.I 9707
.C
earn
.W
NU-MED INC <NUMS> 3RD QTR JAN 31 NET.
    ENCINO, Calif., March 13 -
    Shr 26 cts vs 10 cts
    Net 2,867,000 vs 1,208,000
    Revs 100.0 mln vs 85.0 mln
    Avg shrs 10.4 mln vs 9,791,671
    Nine mths
    Shr 57 cts vs 34 cts
    Net 6,327,000 vs 3,951,000
    Revs 284.4 mln vs 225.4 mln
    Avg shrs 10.1 mln vs 9,831,097
    Current year net both periods includes gain 1,755,000 dlrs
from change inestimation of useful lives used in depreciation
of property and equipment.


.I 9708
.C
earn
.W
ALUSUISSE PLANS 50 PCT CAPITAL CUT.
    ZURICH, March 13 - Schweizerische Aluminium AG, Alusuisse,
plans to reduce share and participation certificate capital by
50 pct to cover losses in 1986 and those carried forward from
the previous year, chief executive Hans Jucker said.
    Jucker told a news conference that the greatest drain on
its financial resources had been stopped, but after
extraordinary charges the net loss of 688 mln francs in 1986
was only slightly under the 756 mln loss of the previous year.
    The losses in 1986 and those carried over from 1985 made it
necessary to reduce capital by 50 pct, he said.
    However, Jucker said the company improved liquidity through
a recovery in cash flow and conversion of 300 mln Swiss francs
of credit into a subordinated loan.
    Trading in Alusuisse shares was suspended on the Zurich
stock exchange after today's announcement by the company that
it would cut its share capital by 50 pct, the bourse said.
Trading would resume again on Monday.


.I 9709
.C
earn
.W
DAVIS WATER <DWWS> RELEASES PRE-SPLIT EARNINGS.
    THOMASVILLE, Ga., March 13 - Davis Water and Waste
Industries Inc said it has restated its earnings on a pre-
stock split basis for fiscal 1987's third quarter and nine
months ended January 31, which were reported March 10 on a post
four-for-three stock split basis.
    The company said its earnings per share for the third
quarter on a pre-split basis, converts to 16 cts from 12 cts
post-split, versus three cts pre-split from two cts post-split
for fiscal 1986's third quarter.
    For the nine months, Davis said, earnings per share would
convert to 77 cts and 44 cts for fiscal 1987 and 1986
respectively, from 58 cts and 33 cts, respectively.


.I 9710
.C
earn
.W
<NOVA AN ALBERTA CORP> 4TH QTR LOSS.
    Calgary, Alberta, March 13 -
    Shr loss 15 cts vs loss 1.09 dlrs
    Net loss 19.3 mln vs loss 139.6 mln
    Revs 611.7 mln vs 868.6 mln
    Year
    Shr profit 12 cts vs loss 1.31 dlrs
    Net profit 16.1 mln vs loss 167.9 mln
    Revs 2.68 billion vs 3.35 billion
    Avg shrs 134.7 mln vs 128.1 mln


.I 9711
.C
acq
.W
ELDER-BEERMAN <ELDR> GETS OFFER OF 30 DLRS/SHARE.
    DAYTON, Ohio, March 13 - Elder-Beerman Stores Corp said
owners of about 70 pct of its stock have offered to take the
company private by offerring 30 dlrs per share for the
remaining 30 pct of its stock.
    The company said the proposal will be considered at a
regularly scheduled board meeting on March 17.
    It said the offer was made by members of the Beerman family
holding about 70 pct of the company's stock, Chairman Max
Gutmann, and certain members of the board.


.I 9714
.C
earn
.W
ECHLIN INC <ECH> DIVIDEND INCREASED 12 PCT.
    BRANFORD, Conn., March 12 -
    Qtly div 14 cts vs 12.5 cts in prior qtr
    Payable April 18
    Record April two


.I 9716
.C
earn
.W
NATIONAL ENTERTAINMENT CORP <NENT> 3RD QTR NET.
    LAS VEGAS, Nev., March 13 - Jan 31 end
    Shr six cts vs eight cts
    Net 177,000 vs 252,000
    Revs 3,209,000 vs 1,070,000
    Nine mths
    Shr 12 cts vs eight cts
    Net 365,000 vs 247,000
    Revs 7,156,000 vs 2,960,000
    NOTE: Prior year net both periods includes 91,000 dlr tax
credit.


.I 9717
.C
earn
.W
NATIONAL ENTERTAINMENT <NENT> REVERSE SPLIT SET.
    LAS VEGAS, Nev., March 13 - National Entertainment Corp
said shareholdersapproved a one-for-25 reverse stock split and
a name change to Major Video Corp, both effective March 16.
    It said its new ticker symbol will be <MAJV>.
    The company also said it expects to add nine company-owned
and franchised Major Video stores in the next 60 days.  It now
operates 64.


.I 9718
.C
earn
.W
<PEMBINA RESOURCES LTD> YEAR NET.
    Calgary, Alberta, March 13 -
    Shr 48 cts vs 81 cts
    Net 3,986,000 vs 6,760,000
    Revs 77.3 mln vs 40.5 mln


.I 9719
.C
acq
.W
COMPUTER MEMORIES <CMIN> SETS FILM FIRM MERGER.
    LOS ANGELES, March 13 - Computer Memories Inc, which ended
its disk drive operations in June 1986, agreed to acquire
<Hemdale Film Corp> in a transaction which will give Hemdale's
owner control of the resulting company.
    Computer Memories' principal asset is about 29.4 mln dlrs
in cash and cash equivalents. It has agreed to exchange newly
issued shares equaling 80 pct of the aggregate issued to
acquire Hemdale. That company's owner, John Daly, would then
become chief executive officer of the combined company which
would be renamed Hemdale Film Corp.
    Computer Memories said the proposed transaction is subject
to the results of certain corporate reviews and approval of its
shareholders, who will hold a special meeting as soon as
practicable.
    The company said it has 11,109,190 shares outstanding, of
which about 1,734,000 are held by Intel Corp <INTC>. It is
anticipated the FIntel shares will be purchased for 2.75 dlrs a
share in connection with the merger with Hemdale, Computer
Memories said.


.I 9720
.C
acq
.W
KLM SEEKS STAKE IN BRITISH COURIER SERVICE.
    AMSTERDAM, March 13 - KLM Royal Dutch Airlines <KLM.AS>
said it is negotiating for a minority stake in a British and
Commonwealth Shipping Plc <BCOM.L> courier service in a
transaction which might include a convertible loan issue.
    KLM, already active in the fast growing door-to-door
delivery market through a 50-pct stake in a Dutch courier
service, is seeking to buy one-third of <IML Air Services Group
Ltd> from British and Commonwealth.
    The two companies agreed earlier this month for KLM to take
a 15-pct stake in British and Commonwealth commuter airline Air
U.K. Ltd in a deal worth around two mln stg.


.I 9721
.C
inventories
.W
******U.S. JAN BUSINESS INVENTORIES ROSE 0.9 PCT AFTER A REVISED 0.6 PCT DEC FALL.
Blah blah blah.

.I 9722
.C
money-fx
.W
ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY.
    By Tony Carritt, Reuters
    BRUSSELS, March 13 - The European Monetary System marks its
eighth anniversary still vulnerable to turmoil in world money
markets despite creating an island of currency rate stability
in Europe, economists say. But many economists say the system,
which holds eight European Community currencies within narrow
fluctuation bands, remains in its infancy.
    Its new currency, the European Currency Unit (Ecu), has
been a runaway success with investors and borrowers alike
seeking an alternative to the volatile dollar.
    And on Wednesday, the long term vision of the Ecu as
Europe's common currency took a step nearer to becoming reality
when Belgium minted the world's first Ecu coin.
    But economists say members such as West Germany have so far
blocked a second stage of development envisaged by the system's
founding fathers, ex-West German Chancellor Helmut Schmidt and
former French President Valery Giscard d'Estaing.
    Under this phase, originally due to have started two years
after the EMS was set up, decision-making was to have been
transferred from national governments and central banks to an
autonomous European Monetary Fund.
   But members have jealously guarded their sovereignty in
economic and monetary matters. "The basic problem of the EMS is
that governments are not prepared to make the quantum leap to a
situation where certain decisions are taken in common," said one
economist who has closely watched the system's development.
    The result is that the EC is often divided over policy on
third currencies, accentuating what the economists say is the
system's greatest weakness, its vulnerability to a weak dollar.
    Over the past 18 months, as the U.S. Dollar plunged and
investors moved into strong currencies, the resulting sharp
rise of the West German mark severely strained the system. MORE
    As the mark soared against the dollar, it also rose against
EMS currencies less favoured by international investors. And as
West Germany last year refused to give in pressure from several
EC partners and the United States to cut interest rates to slow
the mark's rise, the EMS had to be realigned twice to ease
financial and trade strains within the community.
    Two months ago the mark and the Dutch guilder were revalued
by three pct and the Belgian and Luxembourg francs by two pct
against other currencies in the system -- the French franc,
Italian lira, the Irish punt and Danish crown.
   Another frustration has been Britain's failure to lend the
EMS political support by keeping the pound, still a major world
currency, outside the system.
    No change in the British government's attitude is expected
before the country's next general elections, due by mid-1988.
    Meanwhile, the system's last realignment, the 11th since it
was set up, prompted European finance ministers to ask the EC's
highly-secretive Monetary Committee and Committee of Central
Bank Governors to come up with suggestions for reinforcing it.
    Their ideas are due to be unveiled when finance ministers
hold an informal meeting in Belgium early next month.
    But economists said the proposals are unlikely to involve
more than tinkering with technical details. They are sceptical
about the chances for any fundamental change.
    "Technical measures won't be enough to protect the EMS
against external factors such as dollar weakness. For that we
must take the step forward to the institutional level," said Leo
de Corel of Kredietbank's economic research department.
    Economists say the system's fortunes now will depend
largely on the success of an agreement last month among major
industrial nations to stabilise exchange rates. If the dollar
resumes its slide the EMS could be in for more turbulence, they
predict.


.I 9723
.C
earn
.W
GENERAL MILLS<GIS> SEES STRONG 4TH QTR RESULTS.
    MINNEAPOLIS, March 13 - General Mills Inc, reporting
stronger results for the third quarter ended February 22, said
it expects the momentum to continue in the fourth quarter.
    The company said it expects to report "strong earnings per
share growth and a record return on equity in fiscal 1987." It
said this should be achieved despite expected non-operating
charges in the final quarter.
    General Mills said these charges will likely offset
non-operating gains, which included six cts a share in the
first half.
    General Mills said at the end of the third quarter, its
return on average equity was 31.6 pct.
    It said major factors contributing to the third quarter
improvement were an 11 pct gain in unit volume by Consumer
Foods, continuing good profit growth at Red Lobster USA and
strong performance in Specialty Retailing.
    The company reported quarterly earnings of 56.9 mln dlrs,
or 64 cts a share, up from 46.4 mln dlrs, or 52 cts a share a
year ago. Sales rose to 1.31 billion dlrs from 1.13 billion
dlrs. Year-ago data reflect a two-for-one common stock split.


.I 9724
.C
inventories
.W
U.S. JANUARY BUSINESS INVENTORIES ROSE 0.9 PCT.
    WASHINGTON, March 13 - U.S. business inventories rose 5.6
billion dlrs, or 0.9 pct, to a seasonally adjusted 592.19
billion dlrs in January, the Commerce Department said.
    It was the largest inventory rise since July, 1979, when
inventories were up 1.7 pct.
    In December, inventories fell a revised 3.4 billion dlrs,
or 0.6 pct, to 586.65 billion dlrs. Previously, the department
said inventories fell 0.5 pct in December.
    Business sales fell 20.1 billion dlrs, or 4.5 pct, in
January to 428.75 billion dlrs after rising by three pct in
December to 448.82 billion dlrs.
    The department said it was the largest monthly sales drop
on record.
    January inventories were up 8.2 billion dlrs, or 1.4 pct,
from the year-ago level of 583.99 billion dlrs.
    Durable goods inventories rose 1.4 pct to 366.13 billion in
January dlrs while nondurables inventories were up 0.2 pct from
December levels to 226.07 billion dlrs.
    Manufacturers inventories were up 0.5 pct to 277.02 billion
dlrs in January after falling by 0.3 pct in December to 275.53
billion dlrs.
    Wholesalers' inventories rose 1.3 pct in January to 140.25
billion dlrs.
    The inventory-to-sales ratio rose to 1.38, up .07 from
December, the department said.
    January's sales were 2.82 billion dlrs or 0.7 pct below the
January, 1986, level of 431.56 billion dlrs.


.I 9725
.C
acq
.W
PACKAGING SYSTEMS <PAKS> TO BUY LABEL FIRM.
    PEARL RIVER, N.Y., March 13 - Packaging Systems Corp said
it agreed to acquire <Walter-Richter Labels Inc>, a privately
held maker of woven labels based in Paterson, N.J.
    Terms of the acquisition, which is expected to be completed
within 60 days, were not disclosed.


.I 9727
.C
earn
.W
MANUFACTURED HOMES INC <MNH> YEAR NET.
    WINSTON-SALEM, N.C., March 13 -
    Shr 53 cts vs 85 cts
    Net 2,033,425 vs 3,718,325
    Revs 120.6 mln vs 79.5 mln
    NOTE: 1986 net includes 3,300,000 dlr provision for credit
loss.
    1985 net includes charge 504,571 dlrs from cumulative
effect of accounting change.


.I 9729
.C
gold
.W
HAITI ANNOUNCES FIND OF ORE-RICH GOLD FIELD.
    PORT-AU-PRINCE, Haiti, March 13 - The  Ministry of Mines
has announced the discovery of a major gold field in Grand Bois
in Haiti's mineral-rich North.
    At a press conference yesterday, a Ministry spokesman
reported the deposit contained an estimated 44 mln tons of ore,
with each ton capable of containing 7,666 grams of gold. The
spokesman gave no estimate of what he thought the find,
discovered on Wednesday, was worth.
    However, mining could only begin after foreign partners
invest eight mln dlrs needed for technical equipment, the
spokesman said.
    The Haitian government has never before operated a gold
mine, but the United Nations has recently completed a three
year feasibility study which lists Grand Bois and Morne Bossa
as sites of important gold deposits.
    In 1971, the Sedren copper mine in Gonaives, operated by a
Canadian firm, closed down after years of mining a concentrate
containing gold as well as copper.
    "The new Grand Bois mine represents large amounts of money,"
said a former official of Sedren Mine.
    "But like everything else there's a catch. The gold has to
be extracted, and first someone has to come up with the money
to finance the operation," the official, who asked not to be
named, told Reuters.


.I 9731
.C
acq
.W
HOLIDAY CORP <HIA>, COMSAT <CQ> CLOSE SALE.
    MEMPHIS, March 13 - Holiday Corp and Communications
Satellite Corp said they closed the previously announced sale
to Comsat of Holiday's 50 pct interest in Hi-Net
Communications, their joint venture that provides in-room video
entertainment to hotels by satellite.
    Under terms of the deal, Comsat paid Holiday 25 mln dlrs in
cash and assumed half of the venture's 50 mln dlrs of
outstanding debt, the company's said.
    Hi-Net, they added, will continue to provide programming to
Holiday's hotels.


.I 9732
.C
earn
.W
CONSUMERS FINANCIAL CORP <CFIN> 1986 NET.
    CAMP HILL, Pa., March 13 -
    Shr 61 cts vs 42 cts
    Net 6,247,000 vs 5,587,000
    Rev 65.4 mln vs 53.6 mln
    NOTE: 1986 net includes investment gains of 25 cts a share,
versus six cts a share for 1985, and extraordinary gain of
seven cts a share.


.I 9733
.C
earn
.W
CHICAGO RIVET AND MACHINE CO <CVR> 4TH QTR NET.
    NAPERVILLE, ILL., March 13 -
    Shr 21 cts vs 60 cts
    Net 156,576 vs 443,404
    Sales 5,309,519 vs 5,381,264
    Year
    Shr 1.06 dlrs vs 1.55 dlrs
    Net 788,220 vs 1,151,330
    Sales 22.3 mln vs 23.6 mln


.I 9734
.C
earn
.W
FILTERTEK INC <FTK> SETS QUARTERLY.
    HEBRON, Ill., March 13 -
    Qtly div 11 cts vs 11 cts prior
    Pay May 15
    Record May One


.I 9735
.C
money-fx;interest;
.W
UK MONEY MARKET GIVEN LATE HELP OF 185 MLN STG.
    LONDON, March 13 - The Bank of England said it gave the
money market late, unspecified assistance of around 185 mln
stg.
    This takes the total liquidity injected into the system by
the bank today to 1.026 billion stg compared with a shortage it
estimated at around one billion stg.
    Overnight interbank sterling dipped to 10 nine pct after
the bank's announcement compared with levels around 10-1/2 pct
shortly before and 11-1/4 11 pct initially today, dealers said.


.I 9737
.C
rubber
.W
NEW RUBBER PACT APPEARS IN THE BALANCE.
    GENEVA, March 13 - Negotiations on a new International
Natural Rubber Agreement, INRA, are approaching the
make-or-break point and prospects for a future pact appear to
be in the balance, delegates said.
    Manaspas Xuto of Thailand, chairman of the INRA
renegotiation conference, is holding consultations with a small
group of producers and consumers to try to resolve major
outstanding issues. When the talks began on Monday Xuto said
those issues should be settled by the end of the first week to
allow time to draft an agreement during the second week.
    The talks are due to last until March 20.
    Xuto said, "There is nothing concrete yet, but the
atmosphere is good." The discussions are expected to continue
late into the night, and Xuto said he may hold weekend
meetings.
    Delegates said negotiations now focus on the degree to
which price adjustments should be automatic.
    At present, if the market price has been above or below the
reference price (set at 201.66 Malaysian/Singapore cents a kilo
in the current agreement) for six months, the reference price
is revised by five pct or by an amount decided by the
International Natural Rubber Organisation council.
    Consumers are asking that, in these circumstances, the
adjustment be automatic at five pct or more.
    Producers want the council to have the last word and have
resisted reducing its role in the price adjustment procedure.
    Delegates said there seems to be optimism about settling
another issue -- that of the floor price.
    It now appears that consumers may consider dropping their
insistence of a downward adjustment of the floor price, called
the "lower indicative price," under certain circumstances.
    This means that any possible compromise would centre on the
reference price, and the "may buy" (or "may sell") and "must buy" or
"must sell" levels, without changing the "lower indicative price"
-- which is set at 150 Malaysian/Singapore cents in the current
pact.
    Delegates said that in exchange for consumer flexibility on
the floor price question, producers may consider agreeing to
another consumer proposal for more frequent price reviews -- at
12 month intervals instead of 18 at present.


.I 9738
.C
grain;corn;
.W
SOVIETS RUMORED TO HAVE BOUGHT MORE U.S. CORN.
   KANSAS CITY, March 13 - The Soviet Union is rumored
this morning to have bought up to 1.5 mln tonnes of U.S. corn,
export trade sources said.
    The amount was not confirmed, but the talk was widespread
through the trade. Gulf cash barge basis levels jumped two to
three cents this morning on the rumors, which were expected to
boost futures prices on today's open.
    The Soviet Union recently bought over 1.0 mln tonnes of
U.S. corn, ostensibly as a conciliatory gesture ahead of trade
talks with U.S. agriculture officials.
    Purchases rumored today were seen as a positive factor in
light of a Soviet trade official's statement that the previous
purchase had satisfied near-term needs.


.I 9740
.C
earn
.W
TRANSACT INT'L INC <TACT> 3RD QTR JAN 31 NET.
    DARIEN, Conn., March 13 -
    Shr one ct vs three cts
    Net 66,922 vs 194,531
    Rev 4.2 mln vs 5.7 mln
    Nine months
    Shr two cts vs four cts
    Net 93,802 vs 260,702
    Rev 10.1 mln vs 13.2 mln
    NOTE: Nine months 1987 period includes gain of 196,043 dlrs
from sale of Meston Lake Resources shares and a credit of
127,000 dlrs from a favroable settlement of s state income tax
assessment. 1986 nine months period includes gain of 160,431
dlrs, or two cts a share, from sale of Ferrotherm Co.


.I 9742
.C
money-fx
.W
FRANCE REPAYS SOME OF CURRENCY INTERVENTION DEBT.
    PARIS, March 13 - France today repaid 21.95 billion francs
of short-term currency intervention debt to the European
Monetary Cooperation Fund, EMCF, the Finance Ministry said.
    It said the debt was part of a 33.90 billion franc
liability incurred through the activation of EMCF swap
facilities to defend the franc before the January 11 European
Monetary System realignment.
    The realignment, following several weeks of speculative
pressure, produced a three pct revaluation of the West German
mark and the Dutch guilder against the French franc and a two
pct revaluation of the Belgian franc.


.I 9744
.C
crude
.W
******SHELL CANADA RAISES CRUDE PRICES BY 64 CANADIAN CTS/BBL TODAY AT EDMONTON.
Blah blah blah.

.I 9745
.C
ship
.W
CORRECTION - TWO BRAZIL SHIPPING FIRMS SETTLE.
    In today's Sao Paulo story headlined "TWO BRAZILIAN SHIPPING
FIRMS SETTLE WITH STRIKERS" please read in second para ... Offer
from the companies, Global and Flumar ... instead of ... Offer
from the companies, Globo and Flumar ... corrects name of first
company.


.I 9746
.C
hog;livestock;
.W
HAITI ALLOWS IMPORTATION OF BANNED BLACK PIGS.
    PORT-AU-PRINCE, March 13 - Haiti's agriculture minister
yesterday announced his department will permit the importation
of 730 black Creole pigs, which had been banned from the island
nation since 1983.
    Between 1981 and 1983, a team of Canadian veterinarians
funded by the United States, Canada, Mexico and Costa Rica
supervised the slaughter of all Haiti's 1,200,000 pigs under a
program to eradicate African swine flu.
    Today's announcement that Catholic Relief Services
(CARITAS) can import 730 Jamaican pigs comes after months of
protests by farmers who had owned 90 pct of the slaughtered
pigs.


.I 9748
.C
trade
.W
GERMAN BANK SEES GOOD SOVIET TRADE PROSPECTS.
    FRANKFURT, March 13 - Soviet-West German trade is expected
to develop favourably due to Moscow's increasing openness to
East-West economic relations, Dresdner Bank AG's Moscow
representative Michael Stein said.
    He told a bank presentation the Soviet Union was last year
hit by the fall in world oil prices, which cut export revenue
from oil-related products and natural gas, and its overseas
buying power was also adversely affected by the lower dollar.
   Dresdner Bank economist Alfred Apholte said the Soviet
Union's large currency and gold reserves had softened the
impact of the dollar weakening and oil price drop.


.I 9754
.C
acq
.W
NATIONAL PIZZA CO <PIZA> TO ACQUIRE RESTAURANTS.
    PITTSBURGH, March 13 - National Pizza Co said it reached an
agreement in principle to buy seven Straw Hat pizza restaurants
and certain related real estate for approximately three mln
dlrs in cash.
    The acquisitions will be converted to Pizza Hut
restaurants, said National Pizza, and are expected to generate
annual sales of approximately eight mln dlrs.
    When the sale is complete, it will bring to 24 the number
of restaurants operated by National Pizza, the company said.


.I 9756
.C
earn
.W
******CITICORP SAYS PLACING BRAZIL LOANS ON CASH BASIS COULD CUT 1ST QTR NET BY 50 MLN DLRS.
Blah blah blah.

.I 9758
.C
ship
.W
SINGAPORE TO SPEND 1.2 BILLION DLRS ON PORTS.
    SINGAPORE, March 13 - The Port of Singapore Authority (PSA)
will spend 1.2 billion dlrs to develop port facilities and
cargo-handling equipment over the next five years,
Communications Minister Yeo Ning Hong told parliament.
    Yeo said the improvements were needed to cope with an
expected growth of ship tonnage and cargo handled by the port,
but gave no further details.
    The PSA handled 529 mln gross-registered tonnes of cargo in
1985, according to the latest available statistics from the
port authority.


.I 9761
.C
crude
.W
ORS SEEKS CANADIAN FUNDS FOR HEAVY OIL TEST.
    TULSA, Okla., March 13 - <ORS Corp> said <Dominion
Securities (Alberta) Inc> has been appointed to offer common
shares in a new Canadaina company being organized to exploit
heavy oil production opportunities in Canada and Western
Europe.
    ORS said the offer for private sale of the stock being made
on a best efforts basis is designed to raise five mln Canadian
dlrs which the new company will invest in properties and
projects using the Electromagnetic Well Stimulation Process
developed by IIT Research Institute under sponsorship of ORS.


.I 9763
.C
acq
.W
CHRYSLER <C> UNIT BUYS BENEFICIAL <BNL> UNIT.
    ALLENTOWN, PA., March 13 - Chrysler Corp said its Chrysler
First Inc acquired a major portion of the commercial lending
portfolio of Beneficial Business Credit Corp, a subsidiary of
Beneficial Corp.
    It said the acquisition involves about 84 mln dlrs of net
receivables.
    Chrysler First, a subsidiary of Chrysler Financial Corp,
had receivables of 4.3 billion dlrs at the end of 1986.


.I 9780
.C
crude
.W
PETROBRAS ASKS ARMY TO WITHDRAW TROOPS.
    RIO DE JANEIRO, MARCH 13 - Brazil's state-oil company
Petrobras has asked the Army to withdraw the troops which were
occupying its oil installations since Tuesday, Petrobras said
in a statement.
    The statement said the request for the withdrawal of the
troops was made because of the calmness reigning in all of its
refineries.
    "The request was also due to the end of the seamen's strike
and the willingness of the oil industry workers to sit again by
the negotiating table," the statement said.
    Even though the Petrobras statement said the seamen's
strike was over, a union spokesman said only two small shipping
companies had reached a pay agreement. The overwhelming
majority of Brazil's seamen remained on strike.
    The statement said a meeting between Petrobras and oil
industry leaders was set for next Wednesday in Rio, with the
presence of Labour Minister Almir Pazzionotto as a mediator.
    Petrobras said the request for the withdrawal of the troops
was made at 1100 local hours (1400 GMT), but a company
spokesman said he did not know if the troops had already been
removed.


.I 9794
.C
interest
.W
ITALIAN INTERBANK RATE RISES IN FEBRUARY.
    ROME, March 13, Reuter - Italy's average interbank rate
rose to a provisional 12.18 pct in February from 12.05 pct in
January, figures from the Bank of Italy show.
    Weighted average rate on bank lending was a provisional
13.78 pct in February compared with 13.83 in January, while
average weighted rate paid on deposits eased a provisional 7.49
pct from 7.66 pct.
    Italy today announced that its official discount rate would
be cut to 11.5 pct from 12 pct effective tomorrow.


.I 9795
.C
dlr;money-fx;
.W
YEUTTER SAYS DLR LEVEL BASED ON ECONOMIC POLICY.
    WASHINGTON, March 13 - U.S. Trade Representative Clayton
Yeutter said that whether the exchange rate of the dollar would
fall or rise in the coming decade would depend on nations'
financial, monetary and tax policies.
    But, he said, in a speech and remarks to the Heritage
Foundation, that in the end "the marketplace will ultimately
rule the day."
    Asked about the future of the dollar, he said that whether
or not it would rise or fall depended on economic policies and
coooperation among trading nations.
    Yeutter said "if nations do the right kinds of things in
financial, monetary and tax policies, then a lesser burden of
adjustment is placed on exchange rates, and one could envision
a situation of the major trading nations moving back far closer
to what most of us would consider equilibrium and exchange
rates becoming relatively stable."
    But he said, on the other hand, that if nations did not
exhibit greater self discipline and international cooperation,
"It is simply inevitable that the exchange rates will make that
adjustment."


.I 9797
.C
acq
.W
PAINT COMPANY HAS METEX<MTX> STAKE, MAY BUY MORE.
    WASHINGTON, March 13 - Metropolitan Consolidated Industries
Inc, a New York paint company, said it has acquired 278,709
shares of Metex Corp, or 21.2 pct of the total, and left open
the possibility that it might acquire more through a merger.
    In a filing with the Securities and Exchange Commission,
Metropolitan said it bought the Metex stock as an investment.
    It also said it may buy additional shares, or sell some or
all of its current stake. If it buys more shares, Metropolitan
said it would consider doing so in the open market, in private
deals, or through an exchange offer, tender offer or merger.
    Metropolitan said it may acquire an option on or may buy
some or all of the Metex shares owned by William Hack, a Metex
director, who, together with this wife, holds 149,750 of the
company's common shares, or 11.4 pct of the total.
    Metropolitan said it already has an option to buy another
42,750 Metex common shares at 11.25 dlrs each. The option is
not exercisable until April 12, 1988, it said.
    If Metropolitan were to exercise the option and acquire all
of Hack's stake, it would have 471,208 Metex common shares, or
35.9 pct of the total. Metropolitan's SEC filing was
made as a shareholder group with Hack.
    Metropolitan, which said it spent 3.1 mln dlrs to acquire
its Metex stake, listed its recent stock purchases as 54,993
common shares on March 67 at 10 dlrs each and 83,916 shares on
March 11 at 11.25 dlrs.


.I 9800
.C
acq
.W
BPI SYSTEMS <BPII> IN TALKS TO SELL COMPANY.
    AUSTIN, Texas, March 13 - BPI Systems Inc said it is
holding discussions that could lead to the sale of all its
outstanding shares for about 12 mln dlrs.
    BPI president and chief executive officer David R. Fernald
declined to identify the other party involved in the talks.
    For the nine months ended December 31, BPI lost 1,286,000
dlrs on sales of 6,452,000 dlrs.


.I 9802
.C
acq
.W
******BALLY MANUFACTURING SAID IT IS CONSIDERING SALE OF SIX FLAGS THEME PARKS.
Blah blah blah.

.I 9803
.C
acq
.W
TELEMEDIA TO BUY HARROWSMITH, EQUINOX MAGAZINES.
    MONTREAL, March 13 - (Telemedia Inc) said its (Telemedia
Publishing Inc) subsidiary agreed to buy privately-owned
Harrowsmith and Equinox magazines for an undisclosed amount of
cash.
    Telemedia said the acquisition is expected to have a small
positive impact on short-term earnings.
    Harrowsmith, an alternative life-style magazine, is
Canada's seventh-largest paid circulation English-language
magazine while Equinox is the country's eighth largest. Each
has a circulation of about 160,000 copies.
     The magazine group had revenues of eight mln dlrs last
year and employs 50 people, Telemedia said.             
    Telemedia said it will also acquire a 10 pct interest in
the company which recently launched the U.S. edition of
Harrowsmith.
    The magazine's U.S. editiion, begun last year, now has a
paid circulation of 180,000, the company said.
    It said a final deal is expected in mid-April.
    Telemedia said the magazines' founder has agreed to
continue to provide editorial and publishing direction for the
magazines.


.I 9805
.C
earn
.W
DIVI HOTELS NV <DVH> 3RD QTR NET.
    ARUBA, March 13 -
    Shr profit 36 cts vs profit 14 cts
    Net profit 1,162,000 vs profit 464,000
    Revs 16.6 mln vs 11.3 mln
    Nine mths
    Shr loss 89 cts vs loss 79 cts
    Net loss 2,988,000 vs loss 2,673,000
    Revs 35.1 mln vs 25.1 mln
    NOTE: Nine months fiscal 1987 includes extraordinary gain
of 16 cts per share.


.I 9806
.C
acq
.W
FRANKLIN RESOURCES <BEN> SAYS NET MAY DOUBLE.
    SAN MATEO, Calif., March 13 - Franklin Resources Inc said
it believes earnings could double this year as compared to a
year ago when the company reported income of 32 mln dlrs on 143
mln dlrs in revenues.
    Franklin Resources is a financial services company. Its
fiscal year ends September 30.


.I 9810
.C
sugar
.W
CUBA SUGAR CROP SEEN AT LEAST SAME AS LAST YEAR.
    LONDON, March 13 - Cuban sugar export figures for January
suggest that this year's crop may be at least as large as last
year's 7.35 mln tonnes, according to sugar analysts.
    Exports in January totalled 733,000 tonnes raw value, up
from 725,000 a year earlier, according to figures received by
the International Sugar Organization.
    January is the first major export month and the figures
thus give a good indication of the current crop, they said.
Fourth quarter exports fell to 622,000 tonnes from 909,000
tonnes a year earlier, but this was because Cuba was destocking
at the end of 1985, they added.
    Trade house C Czarnikow recently estimated production this
year at 7.50 mln tonnes.
    Cuban sugar production in the third quarter of 1986 was
12,000 tonnes, giving a final 1985/86 crop total of 7.35 mln
tonnes, compared with a 1984/85 crop of 8.10 mln tonnes.
    There is normally no third quarter production in Cuba, but
a hurricane meant that last year's crop was extended.
    Exports to the USSR were substantially down in January at
362,000 tonnes from 489,000 in January 1986, but other Comecon
countries received 210,000 tonnes, against 80,000 tonnes in the
same month last year, figures received by the ISO show.
    Bulgaria, Czechoslovakia, Poland and Romania all took
substantially more Cuban sugar.
    Cuba's November 1986 exports totalled 158,000 tonnes,
compared with 190,000 tonnes in 1985, and December's total was
237,000 tonnes, down from 518,000 tonnes the year before.
Calendar year exports for 1986 were also lower at 6.69 mln
tonnes against 7.21 mln in 1985 -- the lowest level since
1980's 6.19 mln tonnes, the figures show.


.I 9812
.C
earn
.W
HELMERICH AND PAYNE INC <HP> INCREASES DIV.
    TULSA, Okla, March 13 -
    Qtly div 10 cts vs nine cts
    Payable June one
    Record May 15


.I 9813
.C
earn
.W
HOLLY CORP <HOC> 2ND QTR JAN 31 LOSS.
    DALLAS, March 13 -
    Shr loss 45 cts vs profit 20 cts
    Net loss 1,841,000 vs profit 983,000
    Revs 56.2 mln vs 102.9 mln
    Six mths
    Shr loss 13 cts vs profit 80 cts
    Net loss 534,000 vs profit 4.4 mln
    Revs 121.4 mln vs 209.3 mln
    NOTE: Six months fiscal 1987 includes loss of 17 cts per
share from discontinued operations.
    Per share figures also reflect partial three-for-one stock
split effected December 1985.


.I 9815
.C
trade
.W
WHITE HOUSE SAYS TRADE BILL GENERALLY GOOD.
    WASHINGTON, March 13 - White House spokesman Marlin
Fitzwater said the administration had some disagreements with
the trade bill that cleared a House subcommittee yesterday but
generally felt good about the bill.
    "Generally we feel very good about the bipartisan
consideration of the trade legislation. I think we are
progressing very well," he told reporters.
    "There are wide areas of agreement. There are some areas of
disagreement," he said.                 


.I 9816
.C
acq
.W
******SUNTER ACQUISITION BEGINS TENDER FOR ALLEGHENY INTERNATIONAL INC.
Blah blah blah.

.I 9817
.C
grain;corn;
.W
U.S. CONSERVATION SIGNUP SEEN 10 TO 12 MLN ACRES.
    CHICAGO, March 13 - Grain traders and analysts look for a
10 to 12 mln acre sign-up in the USDA's conservation reserve
program, scheduled to be announced after 1400 CST today.
    The USDA probably will accept about 80 to 90 pct of the
acres submitted, they said.
    Total enrollment in the first three years of the program is
only 8.9 mln acres, so the sharp increase expected this year
has underpinned new crop corn futures all week.
    However, some analysts said a 10 to 12 mln acre sign-up may
end up being negative to new crop corn prices, citing trade
talk earlier this year that 14 to 15 mln acres may be submitted
by farmers. Also, acres set-aside under the conservation
program are by definition poor yielding, so the impact on total
corn production will be minimal, they added.


.I 9820
.C
acq
.W
IRISH OIL CONCERN BOOSTS CENERGY <CRG> STAKE.
    WASHINGTON, March 13 - Bryson Oil and Gas plc, a Belfast,
Northern Ireland, oil company which has said it is considering
seeking control of Cenergy Corp, said it raised its stake in
the company to 1,281,887 shares, or 13.2 pct of the total.
    In a filing with the Securities and Exchange Commission,
Bryson said it bought 440,000 Cenergy common shares on March 10
at eight dlrs each. Previously it had held 841,887 shares, or
8.5 pct.
    Bryson has request detailed shareholder information from
Cenergy in case it decided to communicate with shareholders.
But it said Cenergy has made legal challenges to the request.


.I 9822
.C
acq
.W
BALLY <BLY> CONSIDERING SALE OF SIX FLAGS.
    CHICAGO, March 13 - Bally Manufacturing Corp said it is
considering the sale of its Six Flag theme amusement park unit
and would use the proceeds to pay off debt.
    In addition to the possible sale of the amusement parks,
Bally plans to sell a minority stake in its health club chain
to the public. The company will register a proposed offering
with the Securities and Exchange Commission for 20 to 30 pct of
the health clubs soon, spokesman William Peltier told Reuters.
    "Selling Six Flags is definitely under consideration,"
Peltier said in response to an inquiry. He said the company
would use much of the income from the amusement park chain,
were it to be sold, to repay debt.
    Six Flags might sell for as much as 300 mln dlrs, analysts
said. The health club chain, the nation's largest, is valued at
350 to 375 mln dlrs, they said.
    Bally reportedly already has been approached about Six
Flags by several prospective buyers.
    The company needs the cash to begin paying back a 1.6 mln
dlrs mountain of debt.
    Bally recently completed a 439 mln dlrs acquisition of the
Golden Nugget casino hotel in Atlantic City from Golden Nugget
Inc <GNG.N>.
    The purchase pushed its long-term debt to 1.6 billion dlrs,
or almost 2.7 times its equity of 600 mln dlrs.
    Bally's 325-unit health and tennis clubs had revenues in
1986 of more than 450 mln dlrs, or about 28 pct of Bally's
total revenues of 1.64 billion dlrs.
    Bally acquired Six Flags for 147.4 mln dlrs in January 1982
from Penn Central Corp. Bally bought the Great America theme
park in Gurnee, Ill., in May 1984 for 113.2 mln dlrs from
Marriott Corp <mhs>.
    In 1986 the parks had pretax operating profit of 48.6 mln
dlrs on revenues of 369.4 mln dlrs.
    The clubs and equipment unit combined to post operating
profit of 60.4 mln dlrs on revenues of 475.6 mln dlrs in 1986,
of which 456.2 mln came from the clubs.
    The company earlier this month said it will take a charge
to earnings in the first quarter of 17.3 mln dlrs as a result
of its deal to buy back 2.6 mln of its common shares from real
estate developer Donald Trump.
    Under a February 21 deal, Bally agreed to buy the 2.6 mln
of the 3.06 mln shares held by Trump at 24 dlrs a share, or
62.4 mln dlrs, plus 6.2 mln dlrs related expenses in exchange
for Trump not seeking control of the company for 10 years.
    The deal also requires Bally to buy Trump's remaining
shares for 33 dlrs a share if the stock price does not reach
that level by February 21, 1988.


.I 9823
.C
acq
.W
SUNTER BEGINS TENDER FOR ALLEGHENY <AG>.
    NEW YORK, March 13 - Allegheny International Inc said  
Sunter Acquisititon Corp, formed by First Boston Inc, began a
cash tender offer in accordance with their previously announced
merger agreement for all the outsanding shares of Allegheny's
common stock, 2.19 dlr cumulative preference stock and 11.25
dlrs convertible preferred stock.
    The offer expires April 9, unless extended.
    Under terms of the agreement, tendering shareholders will
receive 24.60 dlrs per common share, 20 dlrs per preference
share and 87.50 dlrs per preferred share.
    Allegheny said the offer is conditioned upon the valid 
tender of stock representing a majority of the voting power and
at least two-thirds of outstanding shares of preference stock
and preferred stock.
    The merger agreement was announced earlier this week.


.I 9824
.C
earn
.W
<TRANSIT FINANCIAL HOLDINGS INC> 4TH QTR NET.
    TORONTO, March 13 -
    Shr 35 cts vs 13 cts
    Net 531,840 vs 188,362
    Revs not given
    Year
    Shr 83 cts vs 41 cts
    Net 1,249,000 vs 620,000
    Revs 10,800,000 vs 5,600,000


.I 9827
.C
earn
.W
SPORTING LIFE INC <SPLF> 2ND QTR JAN 31 NET.
    ALEXANDRIA, Va., March 13 -
    Oper shr loss six cts vs profit four cts
    Oper net loss 58,388 vs profit 34,101
    Revs 2,419,203 vs 2,145,967
    1st half
    Oper shr profit six cts vs profit 18 cts
    Oper net profit 61,763 vs profit 172,166
    Revs 5,731,582 vs 4,458,040
    NOTE: Prior year net excludes extraordinary credits of
4,500 dlrs in quarter and 46,000 dlrs in half.
    Current quarter net includes 47,470 dlr tax credit.


.I 9831
.C
acq
.W
INVESTMENT FIRMS CUT CYCLOPS <CYL> STAKE.
    WASINGTON, March 13 - A group of affiliated New York
investment firms said they lowered their stake in Cyclops Corp
to 200,500 shares, or 5.0 pct of the total outstanding, from
260,500 shares, or 6.4 pct.
    In a filing with the Securities and Exchange Commission,
the group, led by Mutual Shares Corp, said it sold 60,000
Cyclops common shares since February 26.


.I 9833
.C
earn
.W
<ARGYLL ENERGY CORP> YEAR LOSS.
    TORONTO, March 13 -
    Shr loss 1.41 dlrs vs profit 27 cts
    Net loss 8,225,052 vs profit 1,566,936
    Revs 4,028,231 vs 6,725,462
    Note: 1986 shr and net after 6,606,646 dlr writedown on
property and other assets


.I 9835
.C
earn
.W
TRANSIT FINANCIAL SEES 1987 SHARE PROFIT RISE.
    TORONTO, March 13 - <Transit Financial Holdings Inc>,
earlier reporting higher fourth quarter and full year earnings,
said it expects 1987 share profit to increase to 1.27 dlrs from
83 cts in 1986.
    The company said the 1987 share forecast is based on 2.5
mln shares outstanding, after a one mln common share issue on
December 30, 1986. Its 1986 and 1985 earnings were based on 1.5
mln shares outstanding.
    The company earlier reported 1986 profit rose to 1,249,000
dlrs or 83 cts a shares from year-earlier 620,000 dlrs or 41
cts a share.


.I 9838
.C
interest
.W
******SAN PAOLO DI TORINO CUTS PRIME RATE TO 12.50 PCT FROM 13.00 PCT - OFFICIAL.
Blah blah blah.

.I 9842
.C
money-supply
.W
******CANADIAN MONEY SUPPLY M-1 RISES 592 MLN DLRS IN WEEK, BANK OF CANADA SAID.
Blah blah blah.

.I 9843
.C
earn
.W
HOLLY CORP <HOC> 2ND QTR JAN 31 LOSS.
    DALLAS, March 13 -
    Shr loss 45 cts vs profit 20 cts
    Net loss 1,841,000 vs profit 983,000
    Revs 56.2 mln vs 102.9 mln
    Avg shrs 4,127,000 vs 4,835,000
    1st half
    Oper shr four cts vs 80 cts
    Oper net 172,000 vs 4,359,000
    Revs 121.4 mln vs 209.3 mln
    Avg shrs 4,127,000 vs 5,439,000
    NOTE: Current half net excludes 706,000 dlr loss from
discontinued oil and natural gas operations.
    Share adjusted for three-for-one stock split and
recapitalization in December 1985.
    Prior year net both periods includes pretax charge of
2,300,000 dlrs from recapitalization costs.


.I 9846
.C
acq
.W
CYCLOPS <CYL> WILL NOT GIVE DATA TO GROUP.
    PITTSBURGH, March 13 - Cyclops Corp said its board rejected
a request by Cyacq Corp, an investor group, for more non-public
information about Cyclops, a maker of specialty steels and an
electronics retailer.
    Cyclops cited its agreement to be acquired by Britain's
Dixons Group PLC for 90.25 dlrs a share under a tender offer
that expires midnight March 17.
    Cyacq, comprising Audio/Video Affiliates Inc, Citicorp
Capital Investors Ltd and other investors, yesterday said it
would increase its tender offer for Cyclops to 92.50 dlrs a
share from 80 dlrs, subject to certain conditions.
    The conditions were that Cyclops provide Cyacq with
non-public data given to Dixons and that Cyacq be satisfied
with financial projections made by Dixons in its offer.
    Cyclops also said its board determined that Cyacq's
announcement was not an offer. "Cyacq's press release does not
amend Cyacq's outstanding tender offer which remains at 80 dlrs
per share and it does not state that Cyacq has financing
commitments necessary to carry out its original offer or any
increased offer that it may make," Cyclops said in a statement.
    Its agreements with Dixons are binding and Dixons indicated
it will not rescind or waive any provisions of the pacts,
Cyclops said.
    The company also said it was advised that Dixons'
shareholders approved the merger, satisfying that condition of
the agreement.


.I 9847
.C
earn
.W
SAN JUAN RACING ASSOCIATION INC <SJR> 3RD QTR.
    NEW YORK, March 13 -
    Shr 22 cts vs 22 cts
    Net 915,911 vs 970,141
    Revs 8.0 mln vs 8.0 mln
    Nine months
    Shr 69 cts vs 56 cts
    Net 3.0 mln vs 2.4 mln
    Revs 23.5 mln vs 22.1 mln
    NOTE:1987 3rd qtr and nine months include extraordainry
gain of 341,145 dlrs and 480,412 dlrs, respectively, on sale of
land.


.I 9850
.C
acq
.W
EDELMAN CUTS LUCKY STORES <LKS> STAKE TO 4.8 PCT.
    WASHINGTON, March 13 - A group led by New York investor
Asher Edelman said he lowered its stake in Lucky Stores Inc
<LKS> to 1,827,734 shares, or 4.8 pct of the total outstanding
common stock, from 1,930,734 shares, or 5.1 pct.
    In a filing with the Securities and Exchange Commission,
the Edelman group said it sold 103,000 Lucky Stores common
shares on March 9 and 10 at prices ranging from 28.625 to
30.375 dlrs a share.
    So long as Edelman's stake is below five pct he is not
required to report his dealings in Lucky Stores stock.


.I 9851
.C
money-supply
.W
CANADIAN MONEY SUPPLY RISES IN WEEK.
    OTTAWA, March 13 - Canadian narrowly-defined money supply
M-1 rose 592 mln dlrs to 33.36 billion dlrs in week ended March
4, Bank of Canada said.
    M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, rose 778 mln dlrs to 75.95 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposit rose 1.09 billion dlrs to 177.95 billion
dlrs.
    M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, rose 1.13 billion dlrs to 217.28 billion dlrs.         
    Chartered bank general loans outstanding rose 500 mln dlrs
to 125.54 billion dlrs.
    Canadian liquid plus short term assets fell 244 mln dlrs to
35.12 billion dlrs and total Canadian dollar major assets of
the chartered banks rose 257 mln dlrs to 221.53 billion dlrs.
    Chartered bank net foreign currency assets rose 782 mln
dlrs to minus 876 mln dlrs.            
    Notes in circulation totalled 16.28 billion dlrs, up 45 mln
dlrs from the week before.
    Government cash balances rose 1.37 billion dlrs to 5.68
billion dlrs in week ended March 11.
    Government securities outstanding fell three mln dlrs to
224.08 billion dlrs in week ended March 11, treasury bills rose
600 mln dlrs to 75.15 billion dlrs and Canada Savings Bonds
fell 294 mln dlrs to 44.05 billion dlrs.           


.I 9852
.C
grain;corn;
.W
USSR HEAVY BUYERS OF YUGOSLAV CORN-U.S. REPORT.
    WASHINGTON, March 13 - The Soviet Union has been a heavy
buyer of Yugoslav corn since October, purchasing close to 1.5
mln tonnes in the 1986/87 marketing year, according to a report
from the U.S. agriculture counselor in Belgrade.
    Approximately 1.5 mln tonnes of Yugoslav corn have already
been committed to foreign buyers for 1986/87, with most of this
sold to the Soviet Union, the Yugoslav Grain Association
reported to the U.S. official.
    In a report dated March 10, the official said that about
800,000 tonnes of the corn has been delivered, with the balance
of 700,000 tonnes to be shipped between now and June.
    An additional 500,000 tonnes of corn can be shipped from
July-September, the grain associaiton said, so total Yugoslav
corn exports could reach 2.0 mln tonnes, the counselor said.
    Heavier than normal monthly shipping rates for Yugoslav
corn exports are due to the increased use of river barges for
exporting corn to the Soviet Union, the counselor said.
    Monthly corn shipments out of Yugoslavia have averaged
around 160,000 tonnes since October 1, higher than earlier
estimates of 150,000, the official said.
    The Soviet Union has taken an increased share of Yugoslav
corn sales during this marketing year, he said.


.I 9854
.C
rubber
.W
U.S. MAKES CONCILIATORY MOVE AT RUBBER PACT TALKS.
    GENEVA, March 13 - The U.S. Has dropped its insistence that
the floor price in a new International Natural Rubber
Agreement, INRA, be revised downward under certain
circumstances, conference sources said.
    The surprise conciliatory move by the U.S. Meets one of the
producers' main concerns -- that the floor price, or "lower
indicative price," remain unchanged, they said.
    It is not clear, however, whether all consuming countries
will follow suit, as a number of them, in particular Britain,
West Germany and Belgium, appeared to have strong reservations,
the sources added.
    The group of consumers has been seeking an adjustment of
the "lower indicative price" (set at 150 Malaysian/Singapore
cents a kilo in the present pact) if the buffer stock,
currently 360,000 tonnes, rises to 450,000 tonnes.
    The sources said the question of to what extent price
adjustments should be automatic remains a problem.
    Conference chairman Manaspas Xuto of Thailand has been
holding consultations with producers and consumers throughout
the day.
    The consumers' group is now holding a separate meeting
ahead of further consultations within the "president's group"
tonight.


.I 9857
.C
interest;gnp;wpi;ipi;
.W
FED SEEN CONTENT WITH U.S. FEBRUARY ECONOMY.
    By Kathleen Hays, Reuters
    NEW YORK, March 13 - U.S. February reports reflecting slim
gains in industrial output and moderating inflation pressures
reinforced expectations that the Federal Reserve will continue
to follow a stable course of monetary policy, economists said.
    "If you're the Fed, there's no reason to do anything," said
Steve Slifer of Lehman Government Securities Inc.
    "There are hints that GNP is picking up. On the inflation
front, all is well," he said. "Money supply is well under
control. It's an absolutely ideal situation."
    February U.S. industrial production rose 0.5 pct, slightly
less than the 0.7 pct gain the financial markets had expected.
This compared with a slim 0.1 pct rise in January's production
number, previously reported as a 0.4 pct increase.
    The February U.S. producer price index gained only 0.1 pct,
less than a 0.3-0.4 pct expected rise. This followed a 0.6 pct
rise in the PPI in January.
    "The Fed is going to look at this positively," said Allan
Leslie of Discount Corporation. "Certainly inflation is not as
bad as what Volcker (Fed Chairman) has said lately. Industrial
production growth is along the lines of what the Fed wants."
    The energy products component of PPI rose 4.0 pct in
February, after a 9.8 pct increase in January.
    "This shows that the impact of energy prices on inflation
is behind us in terms of the move from 15 dlrs to 18 dlrs per
barrel," said Maria Ramirez of Drexel Burnham Lambert Inc. "The
trend is still 3.5 pct in the first half of the year."
    In 1986, declining energy prices contributed to a 2.5 pct
decline in the PPI.
    Economists said that a rise in energy prices was expected,
but a sharp drop in auto prices was not. Passenger car prices
fell 3.4 pct and light truck prices dropped 1.3 pct.
    Yesterday, Federal Reserve Chairman Paul Volcker said that
a possibility of renewed inflation remains a concern in both
the financial markets and the Federal Reserve.
    "The Fed may be lowering its own inflation expectations
today," said Robert Brusca of Nikko Securities International.
    While low inflation permits the Fed to maintain an easier
monetary policy, Brusca said if import prices do not rise this
could necessitate a weaker dollar.
    "The outlook for the dollar is still up in the air," he
said. "We need inflation for U.S. producers to compete with
foreign producers."
    Brusca said prices of electronic equipment dropped 0.8 pct
in February's PPI. With many electronic goods produced
overseas, this may show that foreign producers are not raising
prices which bodes ill for U.S. competitiveness, he said.
    If further dollar declines are needed, this could diminish
overseas investment in U.S. debt, Brusca added, which might
necessitate higher interest rates and lower bond prices.
    By contrast, Slifer said imported goods prices rose 11.8
pct from first quarter 1985 to first quarter 1986 reflecting to
a large degree a 22 pct drop in the trade-weighted real value
of the dollar from February 1985 to February 1987.
    Slifer said import prices may rise further as
manufacturers' contracts put in place before the dollar dropped
to current levels expire, and new contracts are made that
reflect a weaker dollar.
    David Wyss of Data Resources Inc noted that imported
manufactured goods prices rose 8.5 pct at an annual rate in the
second half of 1986, which has contributed to rising U.S.
industrial output.
    "It's the other side of the lower dollar," Wyss said.
"Producers are beginning to find themselves more competitive
and they are increasing output."
    Wyss said that the latest data point to an average
industrial production gain of 0.3-0.4 pct in the first quarter.
"It's an encouraging sign that the manufacturing sector is
beginning to revive."
    But Stephen Roach of Morgan Stanley and Co Inc was not 
convinced that the February reports portend economic gains. He
said much of the strength came from factors that do not point
to a sustained rise in industrial output.
    Roach pointed out that stikers returning to work in farm
equipment industries helped account for a one pct rise in
February business equipment production.
    Utilities output rose 0.7 pct in February after gaining 1.2
pct in January, but Roach said it shows mostly that more energy
was produced, not that manufacturing activity gained.
    Finally, he pointed out that auto production accounted for
half of the industrial production gain as production of auto
assemblies rose to 8.3 million units at an annual rate from 7.5
million units.
    "In the first quarter, it looks like automakers are
producing at an 8.5 mln unit annual rate, but selling at
roughly a seven mln unit rate," Roach said. "The disparity
between output and sales is showing up in inventories."
    Economists pointed to sharp rise in January U.S. business
inventories as a sign that production may be outstripping
demand in the first quarter of 1987.
    January business inventories rose 0.9 pct, the largest gain
since July 1979 when inventories rose 1.7 pct, the Commerce
Department said. Business sales dropped 4.5 pct in January, the
largest monthly sales drop on record.
    Nonetheless, economists do not expect the Fed to react to
month-to-month changes. "The Fed has been standing pat for the
last seven months," Ramirez said. "They will continue to stand
pat for at least the next couple of months."


.I 9864
.C
crude;nat-gas;
.W
MOBIL <MOB> CAPITAL EXPENDITURES LOWER IN 1987.
    NEW YORK, March 13 - Mobil Corp chairman Allen E. Murray
said in the annual report issued today that the company's total
1987 capital expenditures would be lower than the three
billion dlrs spent in 1986.
    "Overall capital and exploration expenditures will fall
slightly below the level for 1986 although we'll be ready to
increase spending whenever the outlook becomes more promising,"
Murray said.
    Mobil data in the annual report shows capital expenditures
have been cut every year since 1984's 3.6 billion dlrs to 3.5
billion dlrs in 1985.
    Murray told shareholders that despite the cuts "the company
has promising acreage to explore as well as major oil and gas
reserves to develop in the U.S., Canada, Europe, Africa and
Indonesia.
    Over the past two weeks Mobil has announced restructuring
of its domestic exploration and development organization and
this week a restructuring of its oil services units, which
support the new affiliate.
    "Mobil's chairman has explained this change by saying we
need a leaner organization to get more efficient usage from our
assets," said John Lord, a Mobil Corp spokesman.
    Murray said in announcing the first reorganization, which
will combine its current three exploration and producing
affiliates into one organization, Mobil Exploration and
Production U.S. Inc, that it is more effective than the present
organization and will improve the company's upstream
competitive position.
    Yesterday the company said that it will restructure its
Mobil Exploration and Producing Services Inc, MEPSI, to enhance
the development and transfer of technology supporting critical
areas of exploration, drilling, resevoir management and
computer systems.
    Earnings from Mobil's upstream operations in 1986 were 827
mln dlrs, down 54 pct from the previous year's 1.8 billion dlrs
in earnings.
    Mobil's strategy in the exploration and production sector
will be to give most attention to exploration possibilities
with the greatest long term potential, the company said.
    In its annual report, Mobil said that this will include
greater emphasis on "frontier plays that, although riskier, fit
our strengths of technology and size...This probably also means
a shift toward emphasis in the foreign area since selective
overseas exploration offers greater potential."


.I 9865
.C
acq
.W
INTERCONNECT PREFERS FRIENDLY GATES <GLJ> OFFER.
    STAMFORD, Conn., March 13 - <Interconnect Capital> said it
seeks to acquire Gates Learjet Corp on friendly terms.
    Late yesterday the company said it has offered 7.07 dlrs
per share for all Gates Learjet shares.
    Interconnect Capital said it intends to purchase the <Gates
Corp> loan to Gates Learjet for 13 mln dlrs should its bid be
successful.
    Interconnect Capital is controlled by <Interconnect Inc>.
    Gates Corp owns 64.8 pct of Gates Learjet.


.I 9866
.C
ship;crude;
.W
BRAZILIAN TROOPS TO LEAVE OIL REFINERIES.
    By Stephen Powell, Reuters
    SAO PAULO, MARCH 13 - Brazil's labour troubles eased a
little today as the authorities announced they were withdrawing
troops from the country's main oil installations occupied three
days ago.
    The troops went in at the request of the state-oil company
Petrobras because of the threat of a strike by 55,000 oil
industry employees.
    Petrobras said in a statement today it had requested the
withdrawal of the troops. The situation in the refineries was
calm, it said, and the employees had indicated their
willingness to negotiate a pay deal.
    A national seamen's strike, however, continued and marines
remained in the country's main ports. The marines were
despatched to the ports after the seamen's strike, now two
weeks old, was ruled illegal last Friday.
    A spokesman at the national strike headquarters in Rio de
Janeiro said today a total of l63 ships were strike-bound, 135
in Brazil and 28 in foreign ports.
    Yesterday two small companies specialised in the transport
of chemicals, Global and Flumar, struck a pay accord with their
seamen who have secured a 120 pct increase.
    Brazilian newspapers today hailed these agreements as a
sign that the national strike could soon come to an end.
    Both companies employ fewer than 200 seamen and union
leaders said the vast majority of Brazil's 40,000 seamen were
still on strike.
    The threat of a stoppage by oil industry employees appeared
today to be receding. Petrobras said in its statement that the
company would meet union leaders for pay talks in Rio de
Janeiro next Wednesday.
    Labour Minister Almir Pazzionotto would act as a mediator.
    Besides industrial troubles, there has also been
considerable unrest this week in the agricultural sector.
    On Tuesday hundreds of thousands of farmers held rallies
throughout the country to protest against high interest rates.
    Television reports showed some of these protests still
continuing today, with farmers blockading banks with their
vehicles in several towns in the states of Sao Paulo and
Parana.
    The strikes in Brazil come as the government is trying to
extricate itself from a serious debt crisis brought on by a
deterioration in its trade balance.
    On February 20 President Jose Sarney announced that Brazil
was suspending interest payments on 68 billion dlrs of debt to
private banks.
    Because of the seamen strike exports are being delayed and
the country is losing badly needed foreign exchange.


.I 9867
.C
earn
.W
INFINITE GRAPHICS INC <INFG> 3RD QTR JAN 31 NET.
    MINNEAPOLIS, MINN.,March 13 -
    Shr profit two cts vs loss 11 cts
    Net profit 31,734 vs loss 190,677
    Sales 1,325,978 vs 1,029,921
    Nine Mths
    Shr profit eight cts vs loss 53 cts
    Net profit 142,200 vs loss 939,435
    Sales 4,066,777 vs 2,793,479


.I 9868
.C
acq
.W
MINDSCAPE BUYS HARCOURT BRACE <HBJ> UNIT.
    NORTHBROOK, ILL., March 13 - (Mindscsape Inc) said it
agreed to buy the educational software unit of Holt, Rinehart
and Winston Inc, a subsidiary of Harcourt Brace Jovanovich Inc,
for undisclosed terms.
    Sales of the division, which had been purchased by Holt,
Rinehart from CBS, peaked at about 10 mln dlrs in 1985,
Mindscape said.


.I 9869
.C
earn
.W
HEALTH-MOR INC <HMI> SETS DIVIDEND.
    LOMBARD, Ill., March 13 - 
    Qtly dividend 17 cts vs 17 cts
    Pay April 10
    Record March 26


.I 9872
.C
acq
.W
******CAESARS WORLD SAYS IT CONSIDERS RESTRUCTURING AND SALE TO OTHER COMPANY.
Blah blah blah.

.I 9873
.C
earn
.W
******FAIRCHILD INDUSTRIES INC 4TH QTR OPER SHR LOSS 44 CTS VS LOSS EIGHT CTS.
Blah blah blah.

.I 9875
.C
crude;nat-gas;
.W
MOBIL <MOB> ADDS NATURAL GAS RESERVES IN 1986.
    NEW YORK, March 13 - Mobil Corp increased net proven
reserves of natural gas liquids in 1986 from the previous year
according to data in its 1986 annual report.
    The report states that total net proved reserves at year's
end stood at 2.5 billion barrels, an increase of 94 mln barrels
or four pct above the previous year and detailed data show that
the gains resulted from an increase in net proved reserves of
natural gas liquids.
    Mobil said gains were in Indonesia where a sixth production
facility began operation in October with a capacity to
manufacture 1.7 mln tonnes of liquified natural gas.
    The company also said that new capacity brought onstream
last year replaced 120 pct of Mobil's production, which
declined by about four pct in 1986 from the previous year.
    Detailed data on reserves shows that U.S. net proved
reserves of crude oil fell to 837 mln barrels from 853 mln
barrels in 1985, natural gas liquid reserves were also lower in
1986 from the previous year.
    Net proved crude oil reserves also fell in Canada to 224
mln barrels and in Europe to 403 mln barrels from the previous
year's level of 231 mln barrels and 439 mln barrels,
respectively.


.I 9876
.C
acq
.W
ARCO SELLS TWO AGRICULTURAL RESEARCH OPERATIONS.
    LOS ANGELES, March 13 - Atlantic Richfield Co said it sold
its Plan Cell Research Institute unit and its Arco Seed Co
operations in two transactions for undisclosed prices.
    The company said it sold Dublin, Calif.-based Plant Cell
Research to Montedision SpA of Milan, Italy, and ARCO Seed Co
to U.F. Genetics of Hollister, Calif.
    Atlantic Richfield said the divestitures are in line with
its policy of focusing resources on oil, gas, chemical and coal
operations.


.I 9877
.C
acq
.W
CAESARS WORLD <CAW> SAYS IT MULLS RESTRUCTURING.
    WASHINGTON, March 13 - Caesars World Inc, in rejecting a 28
dlr a share takeover bid by New York investor Martin Sosnoff,
said it is considering alternatives that include a
restructuring of the company and the sale to someone else.
    In a filing with the Securities and Exchange Commission,
Caesars World said its board decided at a special meeting
yesterday to "explore and investigate" several alternatives in
an effort to thwart Sosnoff's takeover attempt.
 More

.I 9878
.C
sugar
.W
LOW SUGAR PRICES MAY ATTRACT SOVIET/CHINESE.
    LONDON, March 13 - Any further decline in raw sugar prices
is likely to attract buying from the Soviet Union and China,
Woodhouse, Drake and Carey said in their latest weekly market
report.
    Present lower terminal values may be a reflection of the
lack of renewed prompt offtake, particularly from these two
large consumers, the report said.
    The week has seen good demand for Thai raws, particulary
for October/December shipment, which has traded above twenty
points premium to the October New York delivery, it said.


.I 9881
.C
acq
.W
CHEMLAWN <CHEM> SEEKS BIDS BY MARCH 18.
    COLUMBUS, Ohio, March 13 - ChemLawn corp said it has asked
potential purchasers of the company to submit their proposals
by 1700 EST on March 18.
    ChemLawn said if Waste Management Inc <WMX> intends to
participate in the bidding process, it will have to submit a
confidentiality agreement to Chemlawn financial advisor Smith
Barney, Harris Upham and Co Inc.
    Waste Management has a 27 dlr per share tender offer for
Chemlawn underway that Chemlawn has already rejected as
inadequate.
    Chemlawn has already said it is holding talks with various
parties on the sale of the company and said it has informed all
potential purchasers that they mnust sign confidentiality
agreemnents to receive confidential information on Chemlawn.
    ChemLawn said if Waste Management were to sign such an
agreement, ChemLawn would supply it with the same information
being supplied to other potential purchasers. But it said it
will not make an exception for Waste Management which would
give that company an advantage in the bidding process.


.I 9883
.C
earn
.W
GTS CORP <GTSC> 4TH QTR DEC 31 LOSS.
    HOUSTON, March 13 -
    Shr loss 48 cts vs loss 10 cts
    Net loss 1,234,000 vs loss 259,000
    Revs 715,000 vs 1,941,000
    Year
    Shr loss 1.26 dlrs vs loss 34 cts
    Net loss 3,229,000 vs loss 870,000
    Revs 3,001,000 vs 9,767,000
    NOTE: 1986 net both periods includes 672,300 dlr writedown
of value of seismic laboratory and 165,000 dlr increase in
reserve for doubtful accounts.


.I 9885
.C
earn
.W
FAIRCHILD INDUSTRIES INC <FEN> 4TH QTR LOSS.
    CHANTILLY, Va., March 13 -
    Oper shr loss 44 cts vs oper loss eight cts
    Oper net loss 3,158,000 vs profit 2,035,000
    Rev 166.0 mln vs 162.3 mln
    Year
    Oper shr loss 34 cts vs loss 93 cts
    Oper net profit 7,599,000 vs loss 283,000
    Rev 643.3 mln vs 576.3 mln
    NOTE: Per share results after provision for pfd dividends.
    Fourth qtr earnings exclude loss from discontinued
operations of 67.6 mln dlrs, or 4.72 dlrs a share, and a loss
of 25.8 mln dlrs, or 1.81 dlrs a share, from tax reverse,
versus a gain from discontinued operations of 1.8 mln dlrs, or
14 cts a share, in 1985's 4th qtr.
     1986 oper earnings excludes loss from discontinued
operations of 62.5 mln dlrs, or 4.41 dlrs a share, versus a
loss of 166.8 mln dlrs, or 12.24 dlrs a share, in 1985.


.I 9888
.C
acq
.W
SMARTNAMES TO BUY AMERICAN INFORMATION NETWORK.
    WALTHAM, Mass., March 13 - SmartNames Inc said it reached
an agreement in principle to buy American Information Network.
    Terms of the agreement were not disclosed.
    The company said the purchase of American will allow it to
meet the needs of a broader range of direct mail industry
customers.


.I 9893
.C
acq
.W
ARCO <ACR> SELLS TWO OPERATIONS.
    LOS ANGELES, March 13 - Atlantic Richfield Co said it sold
its Plan Cell Research Institute unit and its Arco Seed Co
operations in two transactions for undisclosed prices.
    The company said it sold Dublin, Calif.-based Plant Cell
Research to <Montedision SpA> of Milan, Italy and ARCO Seed Co
to U.F. Genetics of Hollister, Calif.
    Atlantic Richfield said the divestitures are in line with
its policy of focusing resources on oil, gas, chemical and coal
operations.


.I 9895
.C
crude
.W
ECUADOR BEGINS WORK ON OIL PIPELINE TO COLOMBIA.
    QUITO, March 13 - Construction workers today began building
a 26 km (16 mile) pipeline to link Ecuador's jungle oilfields
to a pipeline in Colombia through which Ecuadorean crude could
be pumped to the Pacific Coast, Ecuadorean energy minsitry
officials said.
    They said it would take about two months and at least 15
mln dlrs to build the pipeline from Lago Agrio in Ecuador to
Puerto Colon, Colombia for connection to the Colombian
pipeline, which goes to the port of Tumaco on Colombia's
Pacific Ocean coast.
    The Lago Agrio to Puerto Colon pipeline is designed to
transport between 30,000 to 50,000 barrels of day (bpd) of
Ecuadorean crude to the Colombian pipeline, they said.
    The Colombian pipeline to Tumaco has ample room for
Ecuadorean crude, they said. It is currently transporting about
17,000 bpd out of its 100,000 bpd capacity, an Ecuadorean
energy ministry official said.
    The Ecuadorean crude reaching Tumaco will be shipped by
boat to Ecuador for refining into oil products to meet domestic
demand.
    The completion of the pipeline would allow Ecuador to
resume some of production, paralysed since March six by an 
earthquake the night before.
    The tremor ruptured the country's main pipeline from jungle
oilfields to the Ecuadorean port of Balao, on the Pacific
Ocean.
    Ecuador was pumping about 260,000 bpd before the
earthquake. It would take about five months to repair the
pipeline to Balao, government officials said.
    Ecuador estimates that it will cost between 145 to 150 mln
dlrs to repair oil installations damaged by the earthquake,
energy ministry Javier Espinosa said.
   


.I 9899
.C
trade
.W
DUTCH TRADE FULLY IN BALANCE BUT DOWN IN JANUARY.
    THE HAGUE, March 13 - The Netherlands recorded a flat trade
balance in January, with both exports and imports totaling 14.2
billion guilders, a modestly lower compared with December but
sharply down from January last year, an Economics Ministry
spokesman said, quoting official statistics.
    January 1986 exports compared with a December figure of
15.0 billion guilders and were 25 pct below last year's level
of 18.9 billion.
    January 1986 imports compared with 15.3 billion guilders in
December and fell 18 pct from 17.4 billion in January last
year.


.I 9900
.C
grain;corn;
.W
NUMEROUS FACTORS SAID POINT TO USSR CORN BUYING.
    WASHINGTON, March 13 - A greater than anticipated need,
competitive prices and political motivations could be sparking
Soviet interest in U.S. corn, industry and government officials
said.
    As rumors circulated through grain markets today that the
Soviet Union has purchased an additional 1.5 mln tonnes of U.S.
corn, industry and government sources noted a number of factors
that make Soviet buying of U.S. corn likely.
    First, there are supply concerns. Some trade sources said
recent speculation has been that last year's Soviet grain crop
be revised to only 190 mln tonnes, rather than the 210 mln
announced, therby increasing the Soviet need for grain.
    A drop in Argentine corn crop prospects could also affect
Soviet corn buying, an Agriculture Department source said.
    Dry weather in Argentina -- a major corn supplier to the
USSR -- and reported crop problems prompted USDA to lower its
Argentine 1986/87 corn crop estimate this week to 11.0 mln
tonnes, down from 11.5 mln. Argentina corn exports were also
cut by 500,000 tonnes to 6.8 mln tonnes.
    Argentina has already committed four mln tonnes of this
year's corn for export, a USDA official said, with two mln
tonnes of that booked for April-June delivery to the USSR.
    "Significant downside potential" still exists for the
Argentine crop, the official said, which will decrease the
amount of additional corn that country can sell to Moscow.
    "If the Soviet needs are greater than we have been
thinking, then they might need more than what Argentina can
provide during the April to June period," he said.
    Current competitive prices for U.S. corn have also sparked
Soviet buying.
    U.S. corn was reported to be selling on the world market
earlier this week for around 71 dlrs per tonne, Argentine corn
for 67 dlrs -- a very competitive price spread, U.S. and Soviet
sources said.
    "This price difference makes American corn competitive,"
Albert Melnikov, commercial counselor for the Soviet Union,
told Reuters.
    Impending crop problems in Argentina will likely cause
those prices to rise, and with the recently strong U.S. corn
futures prices, the Soviets might feel corn prices have
bottomed and that this is a good time to buy, sources said.
    Finally, some industry sources said that by buying the
minimum amount of corn guaranteed under the U.S./USSR grains
agreement (four mln tonnes), the Soviet Union may be hoping to
convince the USDA to offer Moscow a subsidy on wheat.
    In an inteview with Reuters this week, USDA secretary
Richard Lyng said that no decision had been made on a wheat
subsidy offer, but that such an offer had not been ruled out.


.I 9903
.C
earn
.W
DESOTO INC <DSO> REGULAR DIVIDEND SET.
    DES PLAINES, ILL., March 13 -
    Qtly div 35 cts vs 35 cts previously
    Pay April 17
    Record March 31


.I 9904
.C
earn
.W
METHODE ELECTRONICS INC <METHB> REGULAR PAYOUT.
    CHICAGO, March 13 -
    Qtly div Class B 1-1/2 cts vs 1-1/2 cts prior
    Class A two cts vs two cts prior
    Pay April 30
    Record April 15


.I 9906
.C
ipi
.W
BRAZIL INDUSTRIAL GROWTH RATE SLOWED IN JANUARY.
    RIO DE JANEIRO, March 13 - The growth rate of Brazilian
industrial output slowed in January to 6.09 pct above the same
1986 month after rising 6.71 pct in December, Brazilian
Geography and Statistics Institute figures show.
    The result is in line with the declining trend in the
growth rate since October, the Institute said.
    In the 12 months to end-January industrial production was
10.48 pct above the 12 months to end-January last year while in
calendar 1986 output was 10.89 pct above 1985.
    The biggest output rises in the 12 months to end-January
were 23.68 pct in pharmaceuticals and 22.12 pct in machinery.


.I 9911
.C
earn
.W
GENERAL CINEMA CORP <GCN> COMMON STOCK DIVIDEND.
    CHESTNUT HILL, Mass., March 12 - 
    Qtly div 15 cts vs 15 cts prior
    Pay April 30
    Recrod April nine


.I 9912
.C
earn
.W
STEPHAN CO <FTC> YEAR NET.
    FT. LAUDERDALE, Fla., March 13 -
    Shr 25 cts vs 18 cts
    Net 109,131 vs 75,793
    Revs 1,811,636 vs 1,280,618


.I 9914
.C
acq
.W
PLM <PLMA> UNIT ENDS MERGER TALKS.
    SAN FRANCISCO, March 13 - PLM Cos Inc said its PLM Power Co
unit broke off merger discussions with Sunlaw Energy Corp of
Beverly Hills, Calif.
    In January PLM Power entered into a letter of intent to
negotiate a potential acquisition of Sunlaw, subject to
substantial due diligence, the company said.
    But it also said the two companies were not able to agree
on mutually satisfactory final terms and conditions.


.I 9915
.C
coffee
.W
COLOMBIA OPENS APRIL/MAY COFFEE REGISTRATIONS.
    BOGOTA, March 13 - Colombia opened coffee export
registrations for April and May with the National Coffee
Growers' Federation setting no limit, Gilberto Arango,
president of the private exporters' association, said.
    He told Reuters the decision not to put any limit responded
to "new factors" which have emerged from recent International
Coffee Organisation talks in London, where producers and
consumers failed to agree on a re-introduction of export quotas.


.I 9916
.C
grain;corn;
.W
USDA REPORTS 10.572 MLN ACRES IN CONSERVATION.
    WASHINGTON, March 13 - The U.S. Agriculture Department has
accepted 10,572,402 more acres of highly erodable cropland into
the Conservation Reserve Program, USDA announced.
    In the latest signup, farmers on 101,020 farms submitted
bids on a total of 11,254,837 acres.
    The accepted bids for annual rental payments ranged up to
90 dlrs per acre with an average of 51.17 dlrs per acre.
    Land entered into the Conservation Reserve Program will be
ineligible for farming for ten years and must be planted with
permanent vegetative cover.
    Producers enrolled 1,894,764 acres of corn base acreage in
the conservation program to take advantage of a corn "bonus"
rental payment that was offered by USDA.
    The corn bonus, to be paid in generic comodity
certificates, amounts to two dlrs per bushel, based on the ASCS
program payment yield for corn, for each acre of corn based
accepted into the reserve.
    The state showing the biggest enrollment in the
conservation program during this signup was Texas with
approximately 1.225 mln acres, followed by Iowa with 1.030 mln
acres, Minnesota with 890,000 acres, Montana 875,000 acres, and
Kansas with 842,000 acres.
    Other states showing big enrollment were Missouri with
646,000 acres, North Dakota with 588,000 acres, and Nebraska
with 554,000 acres.
    In the corn belt states of Illinois and Indiana, 217,000
acres and 116,000 acres respectively were enrolled.
    Farm land signed up to date in the conservation program
totals 19,488,587 acres. Bids on the previous signups ranged up
to 90 dlrs per acre with an average of 45.52 dlrs.


.I 9922
.C
livestock;carcass;
.W
U.S. MEAT GROUP TO FILE TRADE COMPLAINTS.
    WASHINGTON, March 13 - The American Meat Institute, AME,
said it intended to ask the U.S. government to retaliate
against a European Community meat inspection requirement.
    AME President C. Manly Molpus also said the industry would
file a petition challenging Korea's ban of U.S. meat products.
    Molpus told a Senate Agriculture subcommittee that AME and
other livestock and farm groups intended to file a petition
under Section 301 of the General Agreement on Tariffs and Trade
against an EC directive that, effective April 30, will require
U.S. meat processing plants to comply fully with EC standards.
    The meat industry will seek to have the U.S. government
retaliate against EC and Korean exports if their complaints are
upheld.


.I 9925
.C
earn
.W
MET-PRO CORP <MPR> TO PAY REGULAR DIVIDEND.
    HARLEYSVILLE, Pa., March 13 -
    Qtrly 15 cts vs 15 cts prior
    Pay May Eight
    Record April 24


.I 9926
.C
earn
.W
AILEEN INC <AEE> 1SR QTR JAN 31 LOSS.
    NEW YORK, March 13 - 
    Shr loss 30 cts vs loss 20 cts
    Net loss 1,553,000 vs loss 1,031,000
    Revs 10.0 mln vs 8,696,000


.I 9928
.C
earn
.W
WOLVERINE WORLD WIDE INC <WWW> 4TH QTR LOSS.
    ROCKFORD, MICH., March 13 -
    Shr loss six cts vs profit 55 cts
    Net loss 414,000 vs profit 3,936,000
    Sales 109.4 mln vs 126.8 mln
    Year
    Shr loss 1.75 dlrs vs profit 55 cts
    Net loss 12,589,000 vs profit 3,965,000
    Sales 341.7 mln vs 389.5 mln
    NOTE: Year results include 14.0 mln dlr restructuring
charge in 2nd Qtr of 1986


.I 9930
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 122,000 TONNES CORN  SOLD TO MEXICO FOR 1986/87.
Blah blah blah.

.I 9931
.C
earn
.W
HURCO COMPANIES INC <HURC> FIRST QTR NET.
    INDIANAPOLIS, March 13 -
    Shr profit three cts vs loss 18 cts
    Net profit 124,000 vs loss 370,000
    Rev 11.3 mln vs 11.7 mln
    Avg shares 3,673,000 vs 2,368,000


.I 9933
.C
acq
.W
MAXTOR <MXTR> AGREES TO ACQUIRE U.S. DESIGN.
    SAN JOSE, Calif., March 13 - Maxtor Corp and U.S. Design
Corp <USDC>, said they reached definitive agreement covering
the acquisition of U.S. Design by Maxtor.
    They said the arrangement, which is subject to a number of
conditions including U.S. Design shareholder approval, calls
for Maxtor to issue 12 mln dlrs worth of its own common stock
in exchange for all of U.S. Design.
    The number of Maxtor shares to be issued will be determined
by the average closing price of Maxtor stock over the 10
trading day period prior to the day the acquisition becomes
effective, the companies also said.


.I 9934
.C
earn
.W
SHARED MEDICAL SYSTEMS CORP <SMED> SETS PAYOUT.
    MALVERN, Pa., March 13 -
    Qtly div 18 cts vs 18 cts prior
    Pay April 15
    Record March 31


.I 9942
.C
earn
.W
WEIGH-TRONIX INC <WGHT> 4TH QTR NET.
    FAIRMONT, MINN., March 13 -
    Shr 18 cts vs 16 cts
    Net 348,298 vs 308,927
    Sales 4,166,750 vs 3,740,970
    Year
    Shr 72 cts vs 52 cts
    Net 1,409,867 vs 1,020,096
    Sales 16.5 mln vs 15.0 mln
    Avg shrs 1,974,529 vs 1,956,214


.I 9944
.C
livestock;carcass;
.W
U.S. MEAT GROUP TO FILE TRADE COMPLAINTS.
    WASHINGTON, March 13 - The American Meat Institute, AME,
said it intended to ask the U.S. government to retaliate
against a European Community meat inspection requirement.
    AME President C. Manly Molpus also said the industry would
file a petition challenging Korea's ban of U.S. meat products.
    Molpus told a Senate Agriculture subcommittee that AME and
other livestock and farm groups intended to file a petition
under Section 301 of the General Agreement on Tariffs and Trade
against an EC directive that, effective April 30, will require
U.S. meat processing plants to comply fully with EC standards.
  


.I 9946
.C
grain;corn;
.W
CBT TRADERS SAY U.S. CONSERVATION SIGNUP NEUTRAL.
    CHICAGO, March 13 - The 11,254,837 acres of highly erodable
farmland submitted to the U.S. Department of Agriculture for
the conservation reserve program was within trade guesses of
10-12 mln and should have an overall neutral impact on grain
and soybean prices Monday, grain traders said.
    Farmers enrolled 1,894,764 acres of corn base acreage in
the conservation program to take advantage of a corn bonus
rental payment that was offered by the USDA, which may underpin
new crop futures, they said.
    New crop corn prices firmed earlier this week on ideas of a
large sign-up in the program. But traders noted that the poor
yielding acres being set-aside will result in only a modest
decrease in final production figures, since farmers will
concentrate on high yielding land.
    Of a total 11,254,837 erodoble acres submitted, usda
accepted 10,572,402 acres into the program at an average rental
payment of 51.17 dlrs per acre.
    Farm land signed up to date now totals 19,488,587 acres.


.I 9947
.C
earn
.W
MONARCH AVALON INC <MAHI> 3RD QTR JAN 31 LOSS.
    BALTIMORE, March 13 -
    Shr loss 11 cts vs profit four cts
    Net loss 199,000 vs profit 81,000
    Rev 1.9 mln vs 2.5 mln
    Nine months
    Shr loss 14 cts vs profit 15 cts
    Net loss 261,000 vs profit 273,000
    Rev 6.4 mln vs 7.6 mln
    NOTE: Per share information adjusted for three-for-two
stock split on January 31, 1986.


.I 9950
.C
gas;crude;nat-gas;wpi;
.W
U.S. PRODUCER ENERGY PRICES RISE IN FEBRUARY.
    WASHINGTON, March 13 - Prices of wholesale finished energy
goods in the U.S. rose 4.0 pct in February after a 9.8 pct rise
in January, the Labor Department said.
    The Producer Price Index for finished energy goods fell by
20.9 pct in the past 12 months.
    Heating oil prices rose 3.0 pct in February after a 18.0
pct rise in January, the department said.
    Gasoline prices rose by 5.5 pct last month after a 15.7
pct January rise, the department said. Natural gas prices rose
1.8 pct after a 4.2 pct rise in January.
    Crude oil prices rose 4.4 pct in February, after a 19.7 pct
January rise and were off 21.3 pct from the year ago level.


.I 9953
.C
cotton
.W
U.S. COTTON CERTIFICATE EXPIRATION DATE EXTENDED.
    WASHINGTON, March 13 - Expiration dates on upland cotton
certificates issued under the 1986 upland cotton program are
being extended, the Agriculture Department announced.
    The certificates are being extended because of a shortage
of Commodity Credit Corporation inventory available for
exchange with certificates, USDA undersecretary Danial Amstutz
said.
    Presently, upland cotton commodity certificates expire nine
months from the last day of the month of issuance.
    Under the new procedure, all current outstanding and all
new upland cotton certificates issued under the 1986 upland
cotton program will have an expiration date of either February
29, 1988, or nine months from the last day of the month in
which the certificate is issued, whichever is later.


.I 9955
.C
earn
.W
BNL ANNOUNCES NET 1986 PROFITS IN BANK SECTOR.
    ROME, March 13 - State-owned <Banca Nazionale del Lavoro
BNL> said 1986 profits for its banking activities equalled 155
billion lire against 146 billion lire in 1985.
    Consolidated 1986 results for BNL, which also has interests
in tourism, public works, industrial credit and other sectors,
are expected to be announced later this year.
    The results for the banking sector are to be presented at a
shareholders meeting scheduled for April 29.


.I 9956
.C
earn
.W
APPLIED DNA SYSTEMS INC <ADNA> 4TH QTR LOSS.
    NEW YORK, March 13 -
    Shr loss one ct vs nil
    Net loss 148,007 vs loss 58,863
    Revs 198,919 vs 133,071
    Avg shrs 7,476,433 vs 6,633,989
    Year
    Shr loss three cts vs loss six cts
    Net loss 230,949 vs 424,719
    Revs 666,626 vs 509,971
    NOTE: Amounts include losses of a 50 pct owned scientific
development affiliate, Analytical Biosystems Corp.


.I 9957
.C
acq
.W
OILMAN HAS 8.7 PCT OF QED EXPLORATION <QEDX>.
    WASHINGTON, March 13 - Kansas oilman Nicholas Powell told
the Securities and Exchange Commission he has acquired 195,000
shares of QED Exploration Inc, or 8.7 pct of the total
outstanding common stock.
    Powell, who heads Prairie Resources Corp and Mack C. Colt
Inc, both Kansas oil and gas exploration companies, said he
bought the stock for investment purposes.
    Powell, who said he has already spent 609,831 dlrs on his
QED stock, said he plans to buy more shares as long as he
considers them to be undervalued.


.I 9959
.C
earn
.W
******JOHN LABATT LTD 3RD QTR SHR DILUTED 32 CTS VS 30 CTS.
Blah blah blah.

.I 9961
.C
earn
.W
LIFESTYLE RESTAURANTS INC <LIF> 1ST QTR JAN 24.
    NEW YORK, March 13 -
    Shr loss 31 cts vs loss eight cts
    Net loss 1,780,000 vs loss 449,000
    Revs 13.9 mln vs 17.8 mln
    NOTE: Current 1st qtr loss included a gain of 870,000 dlrs
and 70,000 dlrs from the sale of restaurant leases.


.I 9963
.C
earn
.W
SIERRA HEALTH SERVICES INC <SIE> 4TH QTR LOSS.
    LAS VEGAS, Nev., March 13 -
    Shr loss 52 cts vs profit six cts
    Net loss 2,943,000 vs profit 334,000
    Revs 33.5 mln vs 18.5 mln
    Year
    Shr loss 1.57 dlrs vs profit 16 cts
    Net loss 8,781,000 vs profit 792,000
    Revs 116.0 mln vs 56.5 mln



.I 9964
.C
earn
.W
FIRECOM INC <FRCM> 3RD QTR JAN 31 LOSS.
    NEW YORK, March 13 -
    Shr loss two cts vs profit two cts
    Net loss 104,874 vs profit 90,470
    Sales 3,154,673 vs 1,666,313
    Nine mths
    Shr loss one cent vs profit four cts
    Net loss 39,169 vs profit 159,784
    Sales 8,250,003 vs 4,665,553


.I 9965
.C
ipi
.W
BRAZIL INDUSTRIAL PRODUCTION SLOWED IN JANUARY.
    RIO DE JANEIRO, March 13 - Industrial output in January was
6.09 pct above the same 1986 month after rising 6.71 pct in
December, Brazilian Geography and Statistics Institute figures
show.
    The result is in line with the declining trend in the
growth rate since October, the Institute said.
    In the 12 months to end-January industrial production was
10.48 pct above the 12 months to end-January last year, while
in calendar 1986 output was 10.89 pct above 1985.
    The biggest output rises in the 12 months to end-January
were 23.68 pct in pharmaceuticals and 22.12 pct in machinery.


.I 9966
.C
earn
.W
WHEELING AND LAKE ERIE RAILWAY CO <WLE> DIV.
    ROANAKE, Va., March 13 - 
    Qtly div 1.4375 dlrs vs 1.4375 dlrs
    Pay May 1  
    Record April 3     
    Note: Dividend paid to all shareholders other than Norfolk
Southern Corp's <NSC> Norfolk and Western Railway Co.


.I 9967
.C
earn
.W
GENERAL CINEMA CORP <GCN> CLASS B DIVIDEND.
    CHESTNUT HILL, Mass., March 13 - 
    Qtly div class B 13.5 cts vs 13.5 cts
    Pay April 30
    Record April 9   
   


.I 9968
.C
earn
.W
<JOHN LABATT LTD> 3RD QTR JAN 31 NET.
    TORONTO, March 13 -
    Shr 36 cts vs 31 cts
    Shr diluted 32 cts vs 30 cts
    Net 26,158,000 vs 21,798,000
    Revs 1.05 billion vs 844.2 mln
    Nine mths
    Shr 1.28 dlrs vs 1.22 dlrs
    Shr diluted 1.15 dlrs vs 1.08 dlrs
    Net 92,779,000 vs 77,971,000
    Revs 3.16 billion vs 2.70 billion
    Avg shrs 72.4 mln vs 64.0 mln


.I 9969
.C
wheat;grain;
.W
SUDAN RECEIVES 50 MLN DLRS IN PL480 AUTHORITY.
    WASHINGTON, March 13 - Authorizations to purchase 50 mln
dlrs worth of U.S. wheat and wheat flour under Public Law 480
were issued to Sudan today, the Agriculture Department said.
    The authorization provides for 34 mln dlrs -- about 309,000
tonnes -- worth of wheat, grade U.S. number two or better
(except durum which shall be number three or better).
    It also provides for 16 mln dlrs -- about 73,000 tonnes --
worth of wheat flour.
    The contracting period for both commodities is March 20
through August 31, 1987. The delivery period for wheat is March
20 through September 30, 1987 and for wheat flour is April 10
through SEptember 30, 1987, USDA said.


.I 9970
.C
trade
.W
TRADE BILL TO CHANGE AGRICULTURE TRADE LAWS.
    WASHINGTON, March 13 - The House Ways and Means Committee
is moving toward passage of a trade bill that sponsors said was
intended to help open foreign markets to U.S. agricultural
goods and to modify some U.S. agricultural trade laws.
    The trade subcommittee voted to require President Reagan to
take into account the potential harm to U.S. agricultural
exports of any trade retaliation he might impose for foreign
unfair trade practices against other domestic industries.
    The bill would allow U.S. agricultural producers to seek
government monitoring of imports if there is a reasonable
chance the industry would be harmed by an import surge.
    The full Ways and Means Committee is to consider the bill
next week and congressional sources said they expect it will be
approved.
     In investigations involving a processed agricultural
product, trade associations of processors or producers would
have to petition for relief from foreign dumping or unfair
duties.
     The bill sets out U.S. trade negotiating objectives for
the Uruguay round of talks under the General Agreement on
Tariffs and Trade. It would seek fair trade in agriculture,
seek to discipline restrictive or trade distorting import and
export practices, to eliminate tariffs, subsidies, quotas and
non-tariff barriers.
     President Reagan's authority to negotiate a new GATT
agreement would be extended through January 1993 and authority
to negotiate a free trade zone with Canada would be extended
through January 3, 1991.
    The bill extends Reagan's authority to negotiate an
international coffee agreement through October 31, 1989.
    It allows a refund of import duties paid on raw sugar
imported from November 1, 1977 to March 31, 1985 for production
of sugar or products containing sugar and destined for
re-export. The export of the sugar or products must occur
before Octoer 1, 1991.
    Presently, to qualify for the refund the sugar must be
processed within three years after import and exported within
five years.
    Agriculture would also benefit from more rapid decisions in
complaints of unfair foreign trade practices or injury from
imports.


.I 9971
.C
earn
.W
AMERICAN CITY <AMBJ> SETS INITIAL PREFERRED DIV.
    KANSAS CITY, Mo. - March 13 - American City Business
Journals Inc said it declared an initial dividend of 15.4 cts a
share on its recent issue of 1.6 mln shares of convertible
exchangeable preferred stock.
    The dividend is payable March 31 to shareholders of record
March 20, American City said, adding that future dividends will
be paid on a quarterly basis.
    The preferred stock was issued on February 23.


.I 9972
.C
money-supply
.W
******U.S. BUSINESS LOANS RISE 377 MLN DLRS IN MARCH 4 WEEK, FED SAYS.
Blah blah blah.

.I 9973
.C
money-supply
.W
U.S. BUSINESS LOANS RISE 377 MLN DLRS.
    WASHINGTON, March 13 - Business loans on the books of major
U.S. banks, excluding acceptances, rose 377 mln dlrs to 279.085
billion dlrs in the week ended March 4, the Federal Reserve
Board said.
    The Fed said that business loans including acceptances
increased 484 mln dlrs to 281.546 billion dlrs.


.I 9974
.C
heat;gas;crude;nat-gas;wpi;
.W
U.S. PRODUCER ENERGY PRICES RISE IN FEBRUARY.
    WASHINGTON, March 13 - Prices of wholesale finished energy
goods in the United States were up in February, rising by 4.0
pct after a 9.8 pct rise in January, the Labor Department said.
    The Producer Price Index for finished energy goods has
fallen 20.9 pct in the past 12 months.
    Heating oil prices rose 3.0 pct in February after a 18.0
pct rise in January, the department said.
    Gasoline prices rose by 5.5 pct last month after a 15.7
pct January rise, the department said. Natural gas prices rose
1.8 pct after a 4.2 pct rise in January.
    Energy goods at the intermediate stage of processing rose
2.7 pct in February after rising 3.5 pct in January and were
down 16.1 pct over the past 12 months, the Labor Department
said.
    Prices for crude energy goods, such as crude oil, coal and
gas at the wellhead, rose 2.6 pct last month after a 10.0 pct
January rise. They were down 11.6 pct from February 1986, the
department said.
     At the intermediate stage, liquefied petroleum gas prices
rose 10.1 pct last month after a 5.0 pct January rise and were
41.0 pct below prices a year earlier, the department said.
    Residual fuel prices rose 16.7 pct in February after a 13.4
pct rise a month earlier and were off 17.4 pct in 12 months.
    Electric power prices fell 0.3 pct last month, after a 1.3
pct January decline, and were down 3.6 pct from a year ago.
    Crude oil prices rose 4.4 pct in February, after a 19.7 pct
January rise and were off 21.3 pct from the year ago level.
    Prices of natural gas at the wellhead rose 1.8 pct in
February after rising 4.2 pct a month earlier and were 14.8 pct
lower than they were 12 months earlier, the department said.
    Coal costs were down 0.3 pct last month after rising 0.4
pct in January and were down 0.8 pct from a year ago.


.I 9975
.C
earn
.W
******WEYERHAEUSER SAID IT SEES SIGNIFICANT INCREASES IN EARNINGS IN 1987.
Blah blah blah.

.I 9981
.C
earn
.W
******VARITY EXPECTS TO REPORT 4TH QTR AND FULL-YEAR 1986 LOSS.
Blah blah blah.

.I 9983
.C
money-fx
.W
AFTER G-6, ROUND ONE GOES TO CENTRAL BANKS.
    By Claire Miller, Reuters
    NEW YORK, March 13 - Central banks have easily beaten back
the foreign exchange market's first test of the industrialized
nations' recent pact to stabilize currencies, analysts said.
    In active trading this week, the market pushed the dollar,
sterling, the Canadian dollar and Australian dollar higher. But
operators got their fingers burned as one by one the central
banks signalled their displeasure.
    "So far G-6 has been a roaring success,"said James O'Neill,
financial markets economist at Marine Midland Bank NA.
    "The central banks are sending strong signals that they
won't tolerate any kind of momentum building behind
currencies," added a senior corporate trader at one U.K. bank.
    On February 22, the finance ministers and central bank
governors of the U.S., Japan, West Germany, France and the U.K.
-- the Group of Five -- plus Canada, signed an accord under
which they agreed to cooperate closely to foster stability of
exchange rates around prevailing levels.
    The agreement was viewed by many in the market as an
attempt to put a floor under the dollar after its sizeable
two-year decline against major world currencies.
    And initially, traders indicated their respect for the
accord by refraining from pushing the dollar lower.
    But by Wednesday, the dollar climbed to more than 1.87
marks, about five pfennigs above its levels the Friday before
the G-6 accord.
    The move was aided by indications that the U.S. economy
picked up steam in February at the same time as the West German
economy was regressing.
    But dealers said the Federal Reserve Bank of New York gave
traders a sharp reminder that the G-6 pact had encompassed the
idea of limiting inordinate dollar gains as well as declines.
    Dealers differed as to whether the U.S. central bank
actually intervened to sell dollars above 1.87 marks, or simply
telephoned dealers to ask for quotes and enquire about trading
conditions.
    But the dollar quickly backed off. It hovered today around
1.85 marks. "The market was surprised that the Fed showed its
face so soon," said Marine Midland NA's O'Neill.
    Also on Wednesday, London dealers said the Bank of England
intervened in the open market to sell sterling as the U.K.
currency rose to 1.60 dlrs compared with 1.5355 dlrs before the
G-6 pact.
    Sterling, along with the other high-yield currencies like
the Australian dollar and Canadian dollar, was in favor after
traders surmised that the the chance of intervention pursuant
to the Paris currency accord left limited room for profit plays
on dollar/mark and dollar/yen.
    The pound also was boosted by suggestions of an improving
U.K. economy, anticipation of a popular British budget on March
17 and public opinion polls showing good chances for the
incumbent Conservative party in any general election.
    "There was a real run on sterling," said Anne Mills of
Shearson Lehman Brothers Inc.
    Sterling traded today around 1.5750 dlrs, down from 1.5870
dlrs last night. It slid to 2.917 marks from 2.950 yesterday
and from a peak of about 2.98 recently. "There's been some
heavy profit-taking on sterling/mark ahead of next Tuesday's
U.K. budget," said James McGroarty of Discount Corp.
    As speculators detected the presence of the U.S. and
British central banks, they acclerated their shift into
Canadian and Australian dollars. But here too they were
stymied. The Bank of Canada acted to slow its currency's rise.
    The Canadian dollar traded at 1.3218/23 per U.S. dollar
today, down from 1.3185/90 yesterday.
    And the Australian Reserve Bank, using the Fed as agent,
sold Australian dollars in the U.S. yesterday, dealers said.
    The Australian dollar fell to a low of 67.45/55 U.S. cents
today from a high of 69.02 Thursday.
    Analysts said the central banks' moves to stifle sudden
upward movement, leave the market uncertain about its next
step. Today, the focus shifted to the yen which has held to a
very tight range against the dollar for several months.
    The dollar fell to 152.35/40 yen from 153.35/40 last night.
Analysts said the yen also gained as traders unwound long
sterling/short mark positions established lately.
    "Because of the change in perceptions about the health of
the German economy, the funds from those unwinding operations
are ending up in yen," a dealer at one U.K. bank said.
    Recent West German data have shown falling industry orders,
lower industrial output and slowing employment gains.
    Moreover, the yen is benefitting as Japanese entities who
have invested heavily overseas, for example in Australian
financial instruments, repatriate their profits ahead of the
end of the Japanese fiscal year on March 31.
    Noting that the dollar/yen rate is in a sense the most
controversial one because of the large U.S. trade deficit with
Japan, analysts said the stage could be set for another test of
the dollar's downward scope against the Japanese currency.
    In its latest review of the foreign exchange market through
the end of January, the Federal Reserve revealed that it
intervened to protect the dollar against the yen on January 28.
On that day, the dollar fell as low as 150.40 yen.
    "Sure, the Fed bought dollars near the 150 yen level in
January. But the market has to bear in mind that time marches
on and the situation changes," said McGroarty of Discount.


.I 9984
.C
earn
.W
WEYERHAEUSER <WY> SEES HIGHER 1987 EARNINGS.
    TACOMA, Wash., March 13 - Weyerhaeuser Co said it should
have significant increases in earnings in 1987 and 1988 should
be another very good year.
    Weyerhaeuser reported 1986 earnings of 276.7 mln dlrs, or
1.91 dlrs per share, on 5.65 billion dlrs in revenues.
    Anticipated improved cash flows will allow the company to
invest and acquire much more aggressively than it has in the
past few years, Weyerhaeuser also said.
    Weyerhaeuser, principally a lumber products company, said
the forecast was made by the company's chief financial officer
during a meeting of institutional investors in Tokyo.
    It also said its expects to see opportunities in the
building products area, particularly in composite panels and in
other engineered products directed toward specific, rather than
commodity, end-use markets.
    But it said growth may be higher in added-value products,
in financial services and in other diversified businesses.
    In addition, the company said rising product prices and
demand for pulp and paper are reflected in all the major world
markets, except in the case of some light-weighted paper grades
where overcapacity remains a problem.
    Weyerhaeuser further stated that it has lowered its
manufacturing cost structure and is obtaining significant
productivity increases.


.I 9985
.C
earn
.W
LDBRINKMAN CORP <LDBC> 2ND QTR JAN 31 LOSS.
    KERRVILLE, Tex., March 13 -
    Shr loss seven cts vs profit 12 cts
    Net loss 662,000 vs profit 1,520,000
    Revs 59.1 mln vs 63.1 mln
    Six mths
    Shr profit 23 cts vs profit 20 cts
    Net profit 2,802,000 vs profit 2,543,000
    Revs 138.5 mln vs 126.7 mln



.I 9989
.C
earn
.W
ACS ENTERPRISES INC <ACSE> 4TH QTR LOSS.
    BENSALEM, Pa., March 13 -
    Shr loss two cts vs profit three cts
    Net loss 80,333 vs profit 67,967
    Revs 1,162,678 vs 1,009,731
    Avg shrs 3,317,104 vs 2,494.049
    year
    Shr loss 21 cts vs profit four cts
    Net loss 679,520 vs profit 96,724
    Revs 4,191,540 vs 4,702,999
    Avg shrs 3,242,641 vs 2,525,677
    NOTES: Revenues exclude hospital television rental business
sold Dec 29, 1986
    1986 losses in both periods include gain of 530,000 dlrs on
sale of discontinued business


.I 9990
.C
acq
.W
TONY LAMA <TLAM> TO BUY <COULSON OF TEXAS INC>.
    EL PASO, Texas, March 13 - Tony Lama Co Inc said it signed
a letter of intent to buy Coulson of Texas Inc, a maker of
heels and leather components.
    The company said exact terms of the deal have not been
determined but that it does not expect the acquisition to have
a material effect on its financial position.
    In addition to buying substantially of all Coulson's
assets, Tony Lama said it would assume certain of the company's
liabilities.


.I 9991
.C
earn
.W
TO-FITNESS INC <TFIT> YEAR DEC 31 LOSS.
    BAR HARBOUR ISLAND, Fla., March 13 - 
    Shr loss 89 cts vs loss 21 cts
    Net loss 3,030,548 vs loss 548,442
    Revs 1,519,360 vs 1,081,915
    Avg shrs 3,399,993 vs 2,725,425
   


.I 9993
.C
acq
.W
TRIBUNE <TRB> COMPLETES CABLE SYSTEM SALE.
    CHICAGO, March 13 - Tribune Co said it completed the sale
of the Danville, Va., cable television system to Cablevision
Industries Ltd Partnership, affiliated with Cablevision
Industries Inc of Liberty, N.Y.
    It said the Danville system was one of two systems acquired
by Tribune on September 30, 1986 as part of its purchase of The
Daily Press Inc, publisher of the Newport News Daily Press and
The Times-Herald. Agreements to sell both systems for a total
of 100 mln dlrs were reached in October.
    Sale of the Newport News system was completed in December.


.I 9994
.C
acq
.W
GTE <GTE> UNIT TO SELL INFORTEXT PRODUCTS.
    SCHAUMBURG, Ill., March 13 - Infortext Systems Inc said it
finalized a two-year agreement under which GTE Services Corp
and eight affiliates will sell Infortext's line of personal
computer-based telephone call accounting systems.
    GTE Services, a unit of GTE Corp, evaluated 23 competitive
call accounting systems, the company said.


.I 9995
.C
acq
.W
SHEPPARD RESOURCES TO MERGE WITH CANCER CLINIC.
    FORT LAUDERDALE, Fla, March 13 - Sheppard Resources Inc
said it signed a letter of intent to merge with Breast Centers
Inc, an owner, operator and franchiser of clinics that provide
services for the early detection of breast cancer.
    Terms were not disclosed.
    After the merger, Breast Centers shareholders would become
the majority shareholders of the combined company.
    Also, if approved, Sheppard will change its name to Breast
Centers.


.I 9996
.C
earn
.W
FIRSTIER INC <FRST> SETS REGULAR QUARTERLY DIV.
    OMAHA, Neb., March 13 - 
    Qtly div 27.5 cts vs 27.5 cts prior
    Pay March 31
    Record March 25


.I 9997
.C
earn
.W
ZONDERVAN CORP <ZOND> 4TH QTR NET.
    GRAND RAPIDS, Mich., March 13 - 
    Shr profit nil vs profit 38 cts
    Net profit 19,000 vs profit 1,239,000
    Revs 31.7 mln vs 31.2 mln
    12 mths
    Shr profit 52 cts vs loss three cts
    Net profit 2,173,000 vs loss 119,000
    Revs 103.5 mln vs 98.6 mln
    


.I 9998
.C
earn
.W
UNIBANCORP INC <UBCP> REGULAR DIVIDEND SET.
    CHICAGO, March 13 -
    Qtly div 20 cts vs 20 cts previously
    Pay April 15
    Record March 23


.I 9999
.C
earn
.W
SECOND NATIONAL BUILDING <SNBL> RAISES DIVIDEND.
    SALISBURY, Md., March 13 -
    Qtrly seven cts vs six cts
    Pay April 20
    Record March 31
    NOTE: full name of company is Second National Building and
Loan.


.I 10002
.C
earn
.W
BROADVIEW FINANCIAL CORP <BDVF> 4TH QTR LOSS.
    CLEVELAND, March 13 -
    Shr loss 5.67 dlrs vs loss 5.17 dlrs
    Net loss 17 mln vs loss 15.4 mln
    Year
    Shr loss 12.42 dlrs vs loss 9.60 dlrs
    Net loss 37.0 mln vs loss 28.5 mln
    NOTE: 1986 4th qtr and year net includes 11.9 mln dlr and
43.8 mln dlr provision, respectively, for possible land and
real estate losses. 1985 4th qtr and year net includes 5.1 mln
dlr and 13.4 mln dlr provision, respectively, for possible
losses.


.I 10003
.C
earn
.W
ENZO BIOCHEM INC <ENZO> 2ND QTR JAN 31 NET.
    NEW YORK, March 13 -
    Shr one ct vs three cts
    Net 123,000 vs 371,000
    Revs 2,944,000 vs 2,138,000
    Avg shrs 11.4 mln vs 11.6 mln
    Six mths
    Shr five cts vs six cts
    Net 531,000 vs 725,000
    Revs 6,200,000 vs 4,128,000
    Avg shrs 11.4 mln vs 11.6 mln


.I 10004
.C
acq
.W
TENDER FOR ALLEGHENY INT'L <AG> UNDERWAY.
    PITTSBURGH, March 13 - First Boston Inc's <FBC> Sunter
Acquisition Corp said it began its previously announced 24.60
dlr per share tender offer for Allegheny International Inc's
common stock.
    The company is also offering 20 dlrs for each 2.19 dlr
cumulative preferred share, and 87.50 dlrs for each share of
11.25 dlr convertible preferred stock.
    The company said the offer and withdrawal rights will
expire at midnight April nine unless extended.



.I 10005
.C
earn
.W
VARITY <VAT> EXPECTS 4TH QTR, FULL-YEAR LOSS.
    TORONTO, March 13 - Varity Corp, formerly Massey-Ferguson
Ltd, said it expected to report on March 25 a loss for the
fourth quarter and full-year ended January 31.
    A company spokesman said specific figures were unavailable.
    Varity posted a net profit of 3.9 mln U.S. dlrs for the
previous fiscal year ended January 31, 1986 and a 3.3 mln dlr
net profit for the previous fourth quarter. Its net loss for
the nine months ended October 31 totaled 4.7 mln dlrs after a
19.7 mln dlr third quarter loss tied to strikes and plant
shutdowns at its British and French operations.
    Varity also said it would seek shareholder approval at a
special shareholders' meeting on April 9 to authorize a
transfer of values to the contributed surplus account on its
balance sheet from the stated capital account for common
shares.
    The spokesman said the move would help raise company values
required to pay dividends under Canadian law.


.I 10007
.C
acq
.W
CABLEVISION TO BUY VALLEY CABLE FOR 100 MLN DLR.
    LIBERTY, N.Y., March 13 - <Cablevision Industries Corp>
said its Cablevision Industries of California Inc subsidiary
has entered into an agreement to buy substantially all of the
assets of Valley Cable TV for about 100 mln dlrs.
    The company said it will buy the system from a California
limited partnership, which is wholly-owned by Toronto-based
<Hollinger Inc>.
    It said Valley Cable operates a 60,000 subscriber cable
television systems passing about 180,000 homes in the west San
Fernando Valley area of Los Angeles.
    Cablevision said it is the nation's 21st largest cable
company and is ownnd by Alan Gerry, its chairman, president and
chief executive officer. The company said the agreement is
subject to regulatory approval.


.I 10008
.C
earn
.W
<ANTHES INDUSTRIES INC> 4TH QTR NET.
    TORONTO, March 13 -
    Oper shr 16 cts vs nine cts
    Oper net 2,281,000 vs 1,319,000
    Revs not given
    Year
    Oper shr 13 cts vs six cts
    Oper net 2,635,000 vs 1,775,000
    Revs 31.9 mln vs 31.7 mln
    Note: 1986 qtr excludes extraordinary loss of 1,155,000
dlrs or nine cts share, versus gain of 607,000 dlrs or five cts
shr
    Note continued: 1986 year excludes extraordinary loss of
3,101,000 dlrs or 25 cts share, versus extraordinary loss of
265,000 dlrs or two cts share


.I 10010
.C
acq
.W
BORG-WARNER <BOR> BOARD OKS SALE OF UNIT.
    CHICAGO, March 13 - Borg-Warner Corp said its directors
approved the sale, for about 240 mln dlrs, of its industrial
products division to a New York-based private investment firm,
Clayton and Dubilier Inc, and senior management of the group.
    Yesterday, the company said it agreed to sell the division,
which has annual sales of about 300 mln dlrs and is based in
Long Beach, California.



.I 10013
.C
earn
.W
<AUTREX INC> 1ST QTR JANUARY 31 NET.
    TORONTO, March 13 -
    Shr one cts vs two cts
    Net 50,000 vs 58,000
    Revs 467,000 vs 760,000


.I 10015
.C
acq
.W
SOUTHAM UNIT ACQUIRES WINNIPEG COMMUNITY PAPERS.
    TORONTO, March 13 - <Southam Inc> said its Flyer Force unit
acquired three community newspapers in Winnipeg with a combined
circulation of 65,000 for undisclosed terms.
    Southam said the newspapers, The Herald, The Lance and
Metro One, will be printed at its Canadian Publishers division
in Winnipeg.
    Flyer Force intends to expand distribution of the
newspapers to begin improved service to the Winnipeg market,
Southam said.


.I 10018
.C
earn
.W
MLX CORP <MLXX> 4TH QTR LOSS.
    TROY, Mich., March 13 -
    Shr loss 12 cts vs profit one ct
    Net loss 1,815,000 vs profit 65,000
    Revs 59.9 mln vs 2,798,000
    Avg shrs 15.8 mln vs 9,775,000
    Year
    Shr loss 11 cts vs loss three cts
    Net loss 1,217,000 vs loss 324,000
    Revs 83.3 mln vs 3,195,000
    Avg shrs 11.2 mln vs 9,775,000


.I 10022
.C
grain;corn;
.W
U.S. CONSERVATION FIGURES SEEN NEUTRAL/BEARISH.
    By Brian Killen, Reuters
    CHICAGO, March 13 - U.S. Agriculture Department (USDA)
figures for highly-erodible land enrolled into the Conservation
Reserve Program were regarded by most grain analysts as neutral
to bearish, although some said a full state-by-state breakdown
would be needed to assess the full price impact.
    "Out of 10.5 mln acres only 1.9 mln acres were accepted in
corn -- That's neutral at best and perhaps bearish to what the
trade was looking for," Dale Gustafson of Drexel Burnham
Lambert said.
    The USDA said it had accepted 10,572,402 more acres into
the conservation program out of bids on a total of 11,254,837
acres.
    Gustafson said he would not be changing his estimate of
planted acreage for corn as a result of the latest figures, but
some other analysts said they would adjust their estimates
slightly. The USDA is due to release planting intentions
figures March 31.
    Indications of a heavy sign-up in the conservation program
recently lowered most trade estimates of corn planted acreage
to 63.0 to 67.0 mln acres from 67.0 to 69.0 mln.
    Richard Loewy, analyst with Prudential Bache Securities,
said there was not enough information to completely assess the
conservation figures. "The 1.9 mln acres on corn is certainly
disappointing," he added.
    The USDA later released the state-by-state breakdown of the
enrollment figures.
    Loewy said the initial figures appeared to be negative for
both new crop corn and soybeans, and might possibly mean an
upward adjustment in planting intention figures.
    Asked about the impact on the flow of generic certificates
onto the market this spring, he said: "The trade was definitely
looking higher, so certificates are going to be less than
expected."
    The USDA offered a special corn "bonus" rental payment to
the farmers to be paid in generic certificates. The bonus
amounts to two dlrs per bushel, based on the farm program
payment yield for corn, for each acre of corn accepted into the
reserve.
    Katharina Zimmer, analyst for Merrill Lynch Futures, said
the conservation sign-up was slightly higher than she had
expected, although she noted that some trade expectations were
considerably higher than the actual figures.
    "I think it is friendly for the market, at least in the
long run," she said.
    Susan Hackmann of AgriAnalysis said there was some
confusion over whether trade ideas of an enrollment figure
between 15 and 18 mln acres referred to the total sign-up or
the latest addition.
    "It seems the trade was looking for more acres to be bid
into the program," she said.
    Hackmann said she would not make much change to her ideas
about corn planting figures as a result of the conservation
sign-up. She added that while some trade guesses were as low as
61 mln acres, she was looking for corn plantings to be in the
high 60's.
    Zimmer of Merrill Lynch said she would be making a slight
reduction of about one mln acres in her planting estimate to
around 64 mln acres.
    New crop corn prices at the Chicago Board of Trade firmed
earlier this week on ideas of a large sign-up in the program,
despite the fact that acres enrolled are generally poor
yielding and not likely to make a substantial difference to
final production figures.


.I 10025
.C
acq
.W
FOREST CITY <FECA> COMPLETES SALE.
    CLEVELAND, March 13 - Forest City Enterprises Inc said it
completed the previously announced sale of assets of its retail
store division, excluding real estate, to Handy Andy Home
Improvement Centers Inc, a private Gurnee, Ill., firm.
    The sale is for cash and notes but exact terms were not
disclosed.


.I 10026
.C
acq
.W
MINN. BANK, OKLA. THRIFT ACTIONS TAKEN.
    WASHINGTON, March 13 - Beaver Creek State Bank in Beaver
Creek, Minn., failed and the bank's insured assets were
transferred to Citizens State Bank of Silver Lake, Minn., the
Federal Deposit Insurance Corp. said.
    Separately, the Federal Home Loan Bank Board said Victor
Federal Savings and Loan Association of Muskogee, Okla., was
placed into receivership.
    Beaver Creek's two offices will re-open as branches of
Citizens on Monday.
    The transfer was arranged because there were no bids to buy
Beaver Creek, the FDIC said.
    Citizens will pay a premium of 30,000 dlrs  to the FDIC and
purchase Beaver Creek's assets for 5.3 mln dlrs.
    It was the 43rd bank failure in the nation this year.
    The FHLBB said Victor Federal Savings was insolvent and its
assets were transferred to a newly chartered federal mutual
association with directors named by the FHLBB.
    Victor was a stock association with 564 mln dlrs in assets.
    The new association is to be known as Victor Savings and
Loan Association and its assets continue to be insured by the
Federal Savings and Loan Insurance Corp, the FHLBB said.


.I 10027
.C
earn
.W
LIFESTYLE RESTAURANTS <LIF> ADJUSTS REVENUES.
    NEW YORK, March 13 - Lifestyle Restaurants Inc said
revenues for the first quarter ended January 24, 1985, were
17.5 mln dlrs and not the 17.8 mln dlrs it had reported
earlier.
    The company also said a note attached to its earnings
concerning a gain in 1986 on certain sales was incorrect and
should be disregarded.


.I 10028
.C
lumber
.W
U.S. SAYS CANADA COMPLYING WITH LUMBER PACT.
    WASHINGTON, March 13 - The Commerce Department said that
all Canadian firms had begun to pay an agreed to 15 pct
surcharge on softwood shipped to U.S. markets.
    It made the statement after talks with Canadian officials
about press reports and speculation in Canada that some
exporters were not paying the charge.
    Canada and the United States agreed last December to the 15
pct charge, ending a lengthy trade dispute over alleged
Canadian subsidies to Canada's softwood exporters.
    Commerce officials would not say if they found any Canadian
companies had been evading the charge, but that following the
talks they were convinced all exporters were complying with the
agreement.
    Undersecretary of Commerce Bruce Smart said "We are
gratified to learn that companies in Canada have begun paying
the export charge on lumber."
    He added the agreement was important to the health of the
U.S. lumber industry and he intended to see that it was fully
carried out.


.I 10029
.C
acq;crude;
.W
PDVSA TO SIGN CHAMPLIN REFINERY DEAL MARCH 17.
    CARACAS, March 13 - Petroleos de Venezuela, S.A. said it
will sign a contract March 17 to buy a half interest in a
Corpus Christi, Texas refinery and related operations.
    The contract, to be signed by PDVSA and Champlin
Petroleum's parent company, the Union Pacific Corp, will create
a new joint venture called Champlin Refining.
    The state oil company said PDVSA will pay on the order of
30 mln dlrs for the half interest in Champlin.
     Energy minister Arturo Hernandez Grisanti said Wednesday
the cost would be 33 mln dlrs in cash, plus an additional 60
mln in crude and refined oil shipments.
    PDVSA and Union Pacific have sought a line of credit from a
group of North American and Japanese banks to finance the new
company's working capital, the Venezuelan company said.
    Under the deal, PDVSA will supply up to 140,000 barrels a
day to the refinery with the option to place 50,000 bpd more -
mostly gasoline and distillates - through Champlin's
distribution system in 10 U.S. states.
    The new company will be directed by a six-member board,
with three representatives each from PDVSA and Union Pacific.
    According to PDVSA, Venezuelans will occupy such key
positions such as treasurer and vice-president for
manufacturing.
    The total capacity of the Champlin refinery is 160,000 bpd
of crudes and another 40,000 bpd of intermediates. The plant
will be able to handle 110,000 bpd of Venezuelan heavy crudes,
which make up more than half of the country's crude oil
exports.


.I 10030
.C
acq
.W
INVESTOR DISAPPOINTED AT CAESARS <CAW> RESPONSE.
    NEW YORK, March 13 - Investor Martin Sosnoff said in a
statement that he was disappointed in Caesars World Inc's
response to his 28 dlrs a share offer to buy the company.
    The company had said the offer was inadequate and that it
was exploring restructuring or sale of the company to another
party.
    Sosnoff said he believes the offer is fair to all
shareholders. "My primary desire is still to sit down with
management to negotiate a friendly acquisition," he said.


.I 10031
.C
crude
.W
VENEZUELA TO LEND UP TO 12.5 MLN BARRELS OF OIL.
    QUITO, March 13 - Venezuela will lend Ecuador up to 12.5
mln barrels of crude oil to help it meet its export commitments
and its domestic energy demand, Ecuadorean Energy and Mines
Minister Javier Espinosa said today in a statement.
    Ecuador was forced to suspend exports after the pipeline
connecting its jungle oil fields with the Pacific Ocean port of
Balao was damaged last week by an earthquake.
    Venezuela would lend 50,000 barrels per day of crude for a
total of up to to 7.5 mln barrels to help Ecuador meet export
commitments, Espinosa said. Also, Venezuela will sell the crude
and provide the foreign exchange earnings to Ecuador, he said.
     Ecuador would repay Venezuela in crude once it resumed its
exports after repairing its pipeline to Balao, a task that
would take an estimated five  months.
    Venezuela is lending Ecuador five mln barrels of crude for
refining in this country to meet domestic demand. Ecuador would
repay that loan with crude once the oil pipeline is repaired.
    Both countries are the only Latin American members of the
Organisation of Petroleum Exporting Countries (OPEC).
    Ecuador was exporting about 140,000 bpd before the
earthquake, Energy Ministry officials said. Its total output
was around 260,000 bpd.


.I 10032
.C
crude
.W
PDVSA TO SIGN CHAMPLIN REFINERY DEAL MARCH 17.
    CARACAS, March 13 - Petroleos de Venezuela, S.A. said it
will sign a contract March 17 to buy a half interest in a
Corpus Christi, Texas refinery and related operations.
    The contract, to be signed by PDVSA and Champlin
Petroleum's parent company, the Union Pacific Corp <UNP>, will
create a new joint venture called Champlin Refining.
    The state oil company said PDVSA will pay on the order of
30 mln dlrs for the half interest in Champlin.
     Energy minister Arturo Hernandez Grisanti said Wednesday
the cost would be 33 mln dlrs in cash, plus an additional 60
mln in crude and refined oil shipments.
    PDVSA and Union Pacific have sought a line of credit from a
group of North American and Japanese banks to finance the new
company's working capital, the Venezuelan company said.
    Under the deal, PDVSA will supply up to 140,000 barrels a
day to the refinery with the option to place 50,000 bpd more -
mostly gasoline and distillates - through Champlin's
distribution system in 10 U.S. states.
    The new company will be directed by a six-member board,
with three representatives each from PDVSA and Union Pacific.


.I 10034
.C
acq
.W
PRATT <PRAT> OFFER FOR RESORTS <RT> EXPIRES.
    DALLAS, March 13 - PH Acquisition Co, a unit of Pratt Hotel
Corp, said its 135 mln dlrs per share tender offer for all
shares of Class B common stock of Resorts INternational Inc
expired.
    As of today, about 45,690 shares were tendered, an
insufficient number of shares to satisfy the condition that 51
pct of the voting power be tendered.
    Earlier this week, New yOrk developer Donald Trump made a
competing bid for the class B shares.


.I 10036
.C
crude
.W
SAUDIS DROP CONDITION FOR OIL SALE TO BRAZIL.
    RIO DE JANEIRO, MARCH 13 - Saudi Arabia has dropped its
condition that Brazil secure international bank guarantees
before Saudia Arabia would ship it oil, the state-oil company,
Petrobras, said in a statement.
    Petrobras said the Saudis will accept Banco do Brasil
credit guarantees.
    Petrobras cancelled a 40-mln dlr crude oil purchase from
the Saudis yesterday after they refused to accept a letter of
credit from the official Bank of Brazil. The Saudis had
demanded that Brazil get credit guarantees from leading
international banks.
    Petrobras said the Saudis had been advised that if they did
not change their mind by Monday, Petrobras would negotiate the
purchase of oil with other producers.
    The Petrobras statement said the shipment of 2.2 mln
barrels will be made by the Saudis on March 24 as scheduled.
    The shipment is part contract signed in February for the
Saudis to supply Brazil with 125,000 barrels per day until
June.


.I 10038
.C
crude
.W
SAUDI ARABIA DECIDES TO ACCEPT BRAZIL CREDIT.
    RIO DE JANEIRO, March 13 - Saudi Arabia has lifted the
condition it imposed on the sale of oil to Brazil and will
accept Banco do Brasil's credit guarantees, state-oil company
Petrobras said in a statement.
    Petrobras cancelled a 40 mln dlr crude oil purchase from
the Saudis yesterday, after they refused to accept a letter of
credit from the Bank of Brazil, demanding guarantees from
leading international banks.
    It advised the Saudis the company would negotiate oil
purchases elsewhere unless they changed their mind by Monday.
    The 2.2 mln barrels shipment will be made by the Saudis on
March 24 as scheduled, the statement said.
    Under a 125,000 bpd contract signed in February the Saudis
agreed to supply oil to Brazil until June.


.I 10039
.C
earn
.W
MICRON TECHNOLOGY <DRAM> SEES 2ND QTR LOSS.
    BOISE, Idaho, March 13 - Micron Technology Inc said it
expects to record a net loss of about 11 mln dlrs in the second
quarter compared to a loss of 9.7 mln dlrs in the first quarter
and 9.8 mln dlrs in the year-ago second quarter.
    Revenues in the quarter ended March five increased to about
20.4 mln dlrs from 18.8 mln in the preceeding quarter and 9.4
mln dlrs in the year-ago quarter.
    The company makes semiconductors, memory components and
related products.


.I 10040
.C
interest
.W
TRADING RANGE LIKELY TO CONTINUE IN DEBT FUTURES.
    By Brad Schade, Reuters
    CHICAGO, March 13 - U.S. economic data due out next week is
unlikely to hold any surprises that will shake U.S. interest
rate futures out of their relatively narrow trading range of
the last 3-1/2 months, financial analysts said.
    "People don't seem to have any firm conviction about the
current strength of the economy or about the Federal Reserve
doing anything," said Drexel Burnham Lambert analyst Norman
Mains.
    The narrow range trading is also taking its toll on trading
volume, he noted. "We've had a decline in activity as recent
economic statistics have not greatly changed people's
viewpoints on interest rates," Mains said.
    The data, which has provided not clear-cut view of the
economy, coupled with dampened activity in the foreign exchange
markets after the Paris initiative has made for "less than
ebullient market action," Mains said.
    He added, however, that Treasury bond futures could be in
for a retracement after the recent rise as they are near the
top of the trading range.
    "My view is that the economy remains relatively strong and
market participants will see that current prices are
unjustified," Mains said.
    Refco Inc senior vice president Michael Connery also noted
that the market is showing very little momentum and lacks
retail interest. "All of the movement occurs at the opening,"
afterwhich volume dwindles and momentum fades, Connery said.
    Although data during the week was mildly positive for bond
prices, the small rise in February producer prices and downward
revisions in January retail sales and industrial production
were "not real exciting," said Prudential Bache analyst Fred
Leiner.
    "There is no one factor that will push us through the highs
at this moment," Leiner said.
    Next week's revision to fourth quarter U.S. Gross national
Product is also likely to be of little interest to the market,
said Kleinwort Benson chief financial economist Sam Kahan.
Still, forecasts for first quarter GNP could play a role in the
direction of bond prices over the next month.
    Kahan said his early estimate for first quarter growth is
around three pct, due largely to a buildup in inventories
reflected in the January inventory data Friday, which showed
the largest increase since 1979.
    "The key question will be not whether there is a large
increase in first quarter GNP, but whether any increase is
sustainable or a one shot deal," Kahan said.
    He said that a sizable increase in first quarter GNP
stemming from an increase in inventories will be a drag on
second quarter growth.
    If that is the case, GNP in the second quarter could ease
back to a one to two pct growth rate, Kahan said.


.I 10041
.C
earn
.W
<AGRA INDUSTRIES LTD> SIX MTHS JAN 31 NET.
    SASKATOON, Saskatchewan, March 13 -
    Oper shr 35 cts vs 34 cts
    Oper net 2,313,000 vs 1,646,000
    Revs 100.1 mln vs 77.3 mln
    Note: 1986 net excludes extraordinary loss of 294,000 dlrs
or four cts vs shr vs yr-ago loss of 579,000 dlrs or 12 cts
shr. 1986 net includes non-cash loss of 1,436,000 dlrs or 22
cts shr vs yr-ago loss of 1,922,000 dlrs or 39 cts shr from
depreciation and amortization allowances on U.S. cable TV
operation.
    Fewer shrs outstanding.


.I 10045
.C
lumber
.W
 U.S. SAYS CANADA COMPLYING WITH LUMBER PACT.
    WASHINGTON, March 13 - The Commerce Department said all
Canadian firms have begun to pay an agreed 15 pct surcharge on
softwood shipped to U.S. markets.
    It made the statement after talks with Canadian officials
about rumors in Canada that some exporters were not paying the
charge.
    Canada and the U.S. agreed last December to the 15 pct
charge, ending a lengthy trade dispute over alleged Canadian
subsidies to Canada's softwood exporters.
    Commerce officials declined to say if any Canadian
companies had been evading the charge, but said following the
talks they were convinced all exporters were complying with the
agreement.
    Undersecretary of Commerce Bruce Smart said "We are
gratified to learn that companies in Canada have begun paying
the export charge on lumber."
    He added the agreement was important to the health of the
U.S. lumber industry and he intended to see that it was fully
carried out.


.I 10047
.C
coffee
.W
NO HEAVY COFFEE EXPORT IMPLIED-COLOMBIA OFFICIAL.
    BOGOTA, March 13 - A decision by Colombia to open coffee
export registrations for an unlimited amount does not imply the
country will heavily sell coffee until recently withheld,
Gilberto Arango, president of the private exporters'
association, told Reuters.
    Colombia today opened export registrations for april and
may, with the National Coffee Growers' Federation setting no
limit.
    Since the start of the coffee year last october, private
exporters were on average allowed 350,000 bags of 60 kilos per
month.
    "Traders will initially interpret this measure as announcing
heavy sales. Even today it pressured the market. But it will
quickly become apparent that Colombia does not intend to go
over the top," Arango said in an interview.
    "Colombia's marketing policy is to sell without haste but
consistently. No targets for volume will be set. We will react
to market factors adequately. Colombia has no intention to give
its coffee away," he added.
    Arango described measures adopted here yesterday, including
a lower export registration price, as a major change in
Colombia's coffee marketing policy.
    The export registration price, or reintegro, was lowered to
1.10 dlr per lb ex-dock new york, or 155.83 dlrs per bag of 70
kilos, from 1.35 dlrs (194.33 dlrs).
    The government announced a more flexible policy of
reintegro, in order to closely reflect market trends, which
arango warmly welcomed saying private exporters will
undoubtedly be more actively present in the market.
    A frequent gap between international market prices and the
reintegro was unlikely to recur, he said.


.I 10051
.C
rubber
.W
******GENEVA - negotiators at U.N. Conference agree basic elements in new rubber pact - chairman.
Blah blah blah.

.I 10052
.C
rubber
.W
MAJOR DIFFERENCES RESOLVED AT RUBBER PACT TALKS.
    By Claude Fillet
    GENEVA, March 14 - Negotiators at a United Nations
conference on a new International Natural Rubber Agreement
(INRA) have agreed on basic elements in a new pact, conference
chairman Manaspas Xuto said.
    "We have resolved major differences of opinion," he told
Reuters.
    Xuto said the way is now cleared for drafting a new accord,
to replace the current one which expires in October.
    Xuto said: "I welcome the friendly and cooperative
atmosphere that has prevailed without interruption" since the
talks began last Monday.
    "It is my hope that delegations will go back home and try to
ratify the new agreement," he added.
    The renegotiation conference, under the auspices of the
U.N. Conference on Trade and Development (UNCTAD), is the
fourth such meeting in two years.
    Xuto said producers and consumers had agreed on four
points:
    1) Regular price reviews will be held every 15 months.
    Previously consumers were proposing 12-month intervals
between price reviews instead of 18 in the current pact.
    2) If the average of the daily market indicator prices over
six months prior to a review is below (or above) the lower
intervention price (or the upper intervention price), the
reference price will be automatically revised downwards (or
upwards) by five pct unless the International Natural Rubber
Organisation council decides on a higher percentage.
    If buffer stock purchases or sales reach 300,000 tonnes,
the reference price will be lowered or raised by three pct
unless the council decides on a higher percentage.
    3) If the buffer stock reaches 400,000 tonnes, the price at
which the additional contingency stock of 150,000 tonnes is
brought into operation will be two Malaysian/Singapore cents
above the floor price -- or 152 cents.
    4) The floor price will not be breached. Throughout the
talks producers had adamantly resisted a consumer proposal to
lower the floor price of 150 cents if the buffer stock,
currently 360,000 tonnes, rose to 450,000 tonnes.
    The proposal, initiated by the U.S., Was withdrawn last
night, setting the stage for compromise.
    Legal drafting of provisions will start next week and
formal adoption of the new accord by the 40 countries taking
part in the conference is expected to take place on March 20.
    The current conference was widely seen as the last chance
to clinch a deal. Three previous attempts to negotiate a new
five- year pact had failed, the last round breaking down in
October over consumer demands for tighter controls of the
buffer stock.
    The United States, Japan, West Germany, France, Italy and
Britain are the major consumers.
    UNCTAD's latest estimates project an increase of 8.5 pct in
rubber prices this year and 4.1 pct in 1988.


.I 10054
.C
acq
.W
S&L ACQUISITION RAISES U.S. 1987 TOLL TO 12.
    WASHINGTON, March 14 - The Federal Home Loan Bank Board
(FHLBB) announced the acquisition of Home Savings and Loan
Association in Seattle, Washington, by InterWest Savings Bank
of Oak Harbour, Washington.
    The FHLBB said Home Savings was the 12th troubled savings
institution requiring federal action this year.
    It said Home Savings had assets of 150.6 mln dlrs in assets
and InterWest had assets of 342.9 mln dlrs.


.I 10055
.C
veg-oil;soy-oil;
.W
BANGLADESH TO BUY 10,000 TONNES SOYABEAN OIL.
    DHAKA, March 14 - Bangladesh floated an international
tender for the purchase of 10,000 tonnes of refined soyabean
oil for delivery at Chittagong/Chalna port by April 24, Food
Ministry officials said.
    The tender closes March 28 at 0500 GMT.


.I 10058
.C
gas;cpi;
.W
ECUADOR ADOPTS AUSTERITY PROGRAM.
    QUITO, March 14 - Ecuador announced an austerity program
and a price freeze on key consumer goods as a result of last
week's earthquake which killed at least 300 people.
    Presidency Minister Patricio Quevedo said in a televised
address that the budget would be cut by five to 10 pct,
government hiring would be frozen and salaries of top
officials, including the president and cabinet, would be
reduced.
    He also said a price freeze would be imposed on 20 basic
consumer items, mainly food staples, while the price of petrol
would rise by between 69 and 80 pct and bus fares would rise by
20 pct. Petrol supplies would also be limited.
    Information Ministry officials said the price freeze was
aimed at protecting poor Ecuadoreans from a wave of
specualtion. Violators would be severely punished, according to
the price freeze order, signed by five cabinet ministers.
    The items for which prices were frozen included rice,
sugar, cooking oil, potatoes, salt, wheat flour, cigarettes,
soft drinks, school supplies and several kinds of vegetables.
    Ecuador's consumer price inflation was 23 pct in 1986.
    The price of 92-octane petrol rises to 110 sucres a U.S.
Gallon from 65 sucres. Eighty-octane petrol increases to 90
sucres from 50.


.I 10059
.C
trade
.W
SWEDISH TRADE SURPLUS RISES IN FEBRUARY.
    STOCKHOLM, March 14 - Sweden's trade surplus rose to 3.6
billion crowns in February from 1.5 billion in January and 3.48
billion in February 1986, the Central Bureau of Statistics
said.
    The trade surplus for the first two months of the year rose
to 5.1 billion crowns from 4.9 billion in the corresponding
period of 1986.
    The report said February imports stood at 20.1 billion
crowns while exports were 23.7 billion.


.I 10061
.C
iron-steel
.W
YUGOSLAV 1990 STEEL OUTPUT TO HIT 6.3 MLN TONNES.
    BELGRADE, March 14 - Yugoslavian steel output will rise by
one mln tonnes to 6.3 mln tonnes a year between 1986 and 1990
under a development program adopted by the Yugoslav Iron and
Steel Metallurgy Association, the official Tanjug news agency
said.
    The association groups together the main Yugoslav iron and
steel enterprises.
    Extraction of iron ore should show an annual growth rate of
nine pct and reach seven mln tonnes by 1990 under the program.
Iron output is planned to grow at eight pct a year, reaching
4.5 mln tonnes at the end of the decade.
    Tanjug said the programme would create conditions for
raising exports of finished steel products.
    The main Yugoslav steel producers plan to market 5.35 mln
tonnes of steel goods this year, or 150,000 tonnes more than
last year, with 1.5 mln tonnes going to export.


.I 10062
.C
alum
.W
PECHINEY <PUKG.PA> SIGNS SOVIET PACKAGING ACCORDS.
    PARIS, March 14 - French state-owned aluminium and special
metals group Pechiney said it has signed two protocols of
intent to set up joint ventures with the Soviet Union.
    Pechiney said in a statement one accord was to set up joint
ventures manufacturing aluminium packaging for food and
cosmetics, while another was to produce machinery to
manufacture packaging.
    Under the latter, Pechiney, which does not manufacture
packaging equipment, will form and lead a consortium of yet
unspecified European partners, a spokesman said.
    He said it was early to put figures on possible deals, or
outline what form joint ventures would take.
    The statement said joint working groups for each accord had
a three-month deadline to come up with contract proposals.
    No firm contracts have yet been finalised under new laws
enabling joint ventures, First Deputy Prime Minister and
Chairman of the State Agro-Industrial Committee (GOSAGROPROM)
Vsevolod Murakhovsky told journalists here on Wednesday.


.I 10063
.C
crude;pet-chem;
.W
YUGOSLAVIAN OIL FIRM STARTS WORKING WITH FRENCH.
    BELGRADE, March 14 - Yugoslavia's top oil and natural gas
producer <Ina-Naftaplin> has started to implement a cooperation
contract signed last year with the French petrochemical concern
<Petro Chemie>, the official Tanjug news agency said.
    Under the deal Petro Chemie supplies oil to Ina refineries
in Sisak and Rijeka and ships parts to 12 Yugoslav firms in the
petrochemical, chemical, textile and plastics industries. The
Yugoslav firms, in turn, will export oil products to France.
    Tanjug said this year's exchange will value 530 mln dlrs.
    Ina signed a similar deal with West Germany's Hoechst AG
<HFAG.F> two years ago.
    Ina also has joint ventures and co-production projects,
involving Yugoslavia's other main producer <Naftagas> of Novi
Sad, with partners in Angola, Algeria and Tunisia, exploring
for and exploiting oil and natural gas.
    An estimated 300,000 tonnes of oil will thus be obtained
from fields in Angola over the next 15 years, Tanjug said.
    Ina accounts for some 75 pct of Yugoslavia's total oil
production, which amounts to 4.2 mln tonnes a year.
    Ina earned more than 154 mln dlrs from exports of goods and
services to 39 countries last year and ranks among Yugoslavia's
leading export enterprises.
    In a separate statement issued through Tanjug, Ina said it
has successfully completed the first drill at the depth of over
3,000 meters in the Bay of Baes, in Tunisia. Ina is jointly
prospecting with the U.S. Firm Conoco for oil and gas there.
    Work on a second drill, below 4,000 meters, would start
soon in the Bay of Gabes, the statement said. Ina would invest
about 8.5 mln dlrs in prospecting in the Gabes area.
    Conoco, which has completed geological prospecting for the
Tunisian government, has transferred one third of its option
rights in the region to Ina, it said.


.I 10065
.C
palm-oil;veg-oil;
.W
INDONESIA DENIES GIVING PALM OIL IMPORT LICENCES.
    JAKARTA, March 14 - Indonesia, the world's second largest
producer of palm oil, has not issued licences to import the
commodity, a spokesman for the Ministry of Trade said.
    Traders in London said Indonesia has issued licences to
local operators to import around 135,000 tonnes of palm oil
starting in April, but the spokesman said this was incorrect.
    A spokesman for the Indonesian Importers Association also
denied knowledge of the import plan. He said importers would
quickly know if licences were issued. The Trade Ministry
official said there was no sign of a palm oil shortage in
Indonesia.


.I 10066
.C
iron-steel;lead;zinc;
.W
INDIA TO GET U.K. COAL, STEEL INDUSTRY GRANTS.
    NEW DELHI, March 14 - India will get 104.65 mln stg as
grants from Britain to develop its coal, zinc and lead
industries, the British Information Services said in a
statement.
    It said a 31 mln stg grant would be disbursed over three to
four years under an agreement signed here yesterday between the
Indian Finance Ministry and the British Overseas Development
Administration.
    The British grants for developing the Indian coal industry
using British mechanised longwall technology totalled 52 mln
stg in the past 10 years, it said.
    Under a separate agreement, the British government agreed
to provide 73.65 mln stg as a grant to develop a zinc and lead
mine at Rampura-Agucha and an associated smelting complex at
Chaneriya, both in India's northern state of Rajasthan, the
statement said.
    The grant will finance the basic engineering for the
smelter complex to be undertaken by Britain's <Davy McKee> of
Stockton. It will also help develop the mine complex, it added.


.I 10067
.C
ship
.W
IRAN HAS ANTI-SHIP MISSILES NEAR GULF - PAPER.
    NEW YORK, March 15 - Iran has deployed about six large
missiles near the Strait of Hormuz which increase the threat to
shipping in the Gulf, the New York Times said.
    The paper quoted U.S. Intelligence sources as saying the
missiles appeared to be of a Chinese design known as HY-2 which
is based on the Soviet SSN2 or Styx missile.
    Styx missiles have a range of up to 50 miles.
    It said the missiles had been deployed at two sites and
quoted a naval analyst as saying they could be used to sink a
supertanker and block the Strait of Hormuz.
    Missiles now used by Iran had only a fraction of the
explosive power of the Styx and could sink a supertanker only
with a lucky hit, the paper said. None of the new missiles had
been fired yet, it added.
    The CBS television network reported on Friday that Iran had
installed new missiles along the Gulf and said Washington had
warned Tehran not to use them against civilian shipping.


.I 10069
.C
ship;crude;
.W
BRAZILIAN BANK WORKERS DECIDE ON NATIONAL STRIKE.
    CAMPINAS, Brazil, March 15 - Brazilian bank workers voted
to launch a nationwide strike this month, compounding labour
unrest arising from the failure of the government's
anti-inflation plan.
    At a rally in this city, about 100 km northwest of Sao
Paulo, about 5,000 bank workers voted to strike on March 24
unless their demand for 100 pct pay rises is met.
    Wilson Gomes de Moura, president of the national
confederation which groups the bank employees' 152 unions
representing 700,000 workers, told Reuters the indefinite
stoppage would affect all banks.
    The vote came as a stoppage by seamen entered its third
week and as 55,000 oil workers threatened action against the
state-owned petroleum company Petrobras.
    The government ordered thousands of troops into the
refineries on Tuesday to forestall any occupation, but the
troops were removed yesterday.
    Petrobras said it had requested their withdrawal because
the refineries were calm and oil workers had indicated their
willingess to negotiate next Wednesday. The government has also
sent marines into the main ports.
    A spokesman at strike headquarters for the seamen in Rio de
Janeiro said unions were studying an offer by private
shipowners for a 120 pct pay rise.
    Seamen employed by two small companies have already
accepted a 120 pct pay rise and returned to work, as have about
5,000 seamen employed by Petrobras.
    Last week also saw widespread protests by hundreds of
thousands of farmers over what they see as unfairly high
interest rates charged by banks.
    According to official estimates, prices rose by more than
33 pct in the first two months of this year.


.I 10073
.C
trade
.W
BALDRIGE WARNS OF WORLD TRADE WAR DANGER.
    WASHINGTON, March 15 - U.S. Commerce Secretary Malcolm
Baldrige predicted Congress will pass a reasonable trade bill
this year and said tough protectionist legislation could prompt
a trade war.
    "The mood of the Congress right now is as tough on trade as
I've ever seen it in six years in Washington," Baldrige said in
a television interview.
    "I think we'll still be able to get a reasonable trade bill
out in spite of that because the whole Congress is trying to
work together with the administration, but there is a hardening
trade attitude," he said.
    President Reagan opposes protectionist legislation, but
agreed to support a trade bill when it became apparent that
opposition Democrats would pass such legislation.
    However, Baldrige warned measures that would penalise
trading partners such as Japan, South Korea and Taiwan for
failing to cut their trade surpluses with the U.S. Could lead
to retaliation and he said he would urge Reagan to veto any
such bill.
    When asked if there is a rising danger of a worldwide trade
war, Baldrige said: "Yes, I don't think there's any question
about that."


.I 10075
.C
acq
.W
DELORS QUOTED FAVOURING FRANCO-GERMAN BID FOR CGCT.
    PARIS, March 15 - European Commission President Jacques
Delors, quoted by Le Monde newspaper, said he favoured a
Franco-German candidate to take over <Cie Generale de
Constructions Telephoniques>, which has a 16 pct stake in the
French public telephone switching market.
    "I wish for a European solution ... That will enable Germany
and France to move closer together, which is currently
necessary," he was quoted as saying.
    "Given the situtation of the EC (European Community) and of
the importance for our future connunications audiences and of
cooperation already undertaken on the Community level, that
seems the best choice," Delors added.
    Five groups, including an alliance between West Germany's
Siemens AG <SIEG.F> and France's Schneider S.A. <SCHN.PA>
subsidiary Jeumont-Schneider, have applied to buy what is
France's second largest telephone switching firm.
    Under French privatisation law, foreign companies are
restricted to a 20 pct stake in privatised companies.


.I 10079
.C
crude
.W
******SAUDI OIL MINISTER FORESEES NO NEED FOR NEW OPEC MEASURES BEFORE JUNE 25.
Blah blah blah.

.I 10080
.C
crude
.W
SAUDI OIL MINISTER SEES NO NEED TO ALTER OPEC PACT.
    By Philip Shehadi, Reuters
    RIYADH, March 15 - Saudi Arabian Oil Minister Hisham Nazer
said OPEC's December agreement to stabilise oil prices at 18
dlrs a barrel was being implemented satisfactorily and there
was no immediate need to change it.
    Nazer, in an interview with Reuters and the television news
agency Visnews, said Saudi Arabia was producing around three
mln barrels per day (bpd) of crude oil, well below its OPEC
quota.
    Saudi Arabia, the world's largest oil exporter, will
continue to restrain production as long as other OPEC members
adhere to the pact, Nazer said.
    The 13-nation OPEC agreed in December to cut its production
ceiling by 7.25 pct to 15.8 mln bpd and abide by fixed prices
averaging 18 dlrs a barrel from February 1.
    Nazer, in his first interview since succeeding Ahmed Zaki
Yamani last October, said: "I do not foresee any need for new
measures before the 25th of June when our (next OPEC) meeting
will take place as scheduled."
    Nazer said OPEC was producing below 15.8 mln bpd and all
members were abiding by its agreements.
    "We've heard news every now and then of violations but they
were not at all verified," he said.
    OPEC production curbs have boosted world oil prices from a
13-year low of around eight dlrs a barrel last August to near
18 dlrs after announcement of the December pact.
    Spot market prices slipped some two dlrs in February but
have firmed in the past two weeks to near OPEC levels as
traders gained confidence in OPEC price and output discipline.
    Nazer said Saudi Arabia would continue to produce below its
4.133 mln bpd quota if necessary to defend the 18 dlr price.
    "As long as all the OPEC members adhere to the program as
devised in December, Saudi Arabia will continue to adhere to
the agreement," he said.
    Current production of three mln bpd includes oil from the
Neutral Zone shared with Kuwait, but not sales from floating
storage, Nazer said.
    King Fahd of Saudi Arabia, in an interview with Reuters and
Visnews on March 11, said the kingdom wanted oil price
stability and called on non-OPEC producers to avoid harmful
competition with OPEC.
    "Saudi Arabia doesn't decide prices by itself but certainly
desires price stability," he said.
    Nazer said the output level did not mean the kingdom had
returned to a role of "swing producer" within OPEC.
    Saudi Arabia allowed its output to sink as low as two mln
bpd in August 1985 to compensate for slack demand and
over-production by some OPEC states.
    "Saudi Arabia is not playing that role. It is being played
by OPEC membership as a whole because the reduction in the 15.8
mln bpd share of OPEC in the market is being shared by other
members of OPEC," Nazer said.
    Nazer said OPEC estimated demand for its oil during third
quarter this year would be around 16.6 mln bpd.
    But he said if circumstances changed "I am sure then the
OPEC members will consult with each other and take the
necessary measures."
    Oil analysts say the OPEC pact could come under strain when
demand for petroleum products generally falls in the northern
hemisphere spring and summer.
    Nazer said he was satisfied with the extent of cooperation
from non-OPEC producers. Norway, Egypt and the Soviet Union
agreed to help OPEC by restraining production or exports after
he visited them on OPEC's behalf earlier this year.
    "We did not ask any country to do anything. These were
programmes they thought were necessary to stabilise market
conditions and to help themselves attain better pricing
conditions," Nazer said.
    He said it was up to countries that declined to cooperate
-- such as Britain -- to come up with their own proposals if
they saw fit.


.I 10081
.C
cocoa
.W
IVORY COAST CONFIRMS PRESENCE AT COCOA TALKS.
    By Roger May, Reuters
    ABIDJAN, March 15 - A senior Ivory Coast Agriculture
Ministry official confirmed his country's backing for a new
international cocoa pact and said Ivorian delegates would be
present at talks on its buffer stock starting this week.
    The official told Reuters that Ivorian Agriculture Minister
Denis Bra Kanon would attend the opening of the talks, convened
by the International Cocoa Organization (ICCO), in London on
Monday.
    While Bra Kanon is due to return home this week for funeral
ceremonies for a sister of Ivorian President Felix
Houphouet-Boigny, scheduled to be held in the country's capital
Yamoussoukro between March 19-22, senior Ivorian delegates will
be present throughout the London talks, the official said.
    Bra Kanon is chairman of the ICCO Council and rumours that
he or Ivorian delegates might be delayed because of public
mourning in the West African nation helped depress already low
world cocoa prices Friday.
    The official said Ivory Coast continued to support the new
pact, which was agreed in principle last year by most of the
world's cocoa exporters and consumers.
    He also said Bra Kanon would fulfil his duties as ICCO
Council chairman during the talks, scheduled to end on March
27.
    The meeting aims to set rules for the operation of the
pact's buffer stock which producers hope will boost a market
hit by successive world cocoa surpluses.
    Ivory Coast did not participate in the last international
cocoa pact and its decision to join the new accord has sparked
hopes that it will be more successful in supporting prices.


.I 10082
.C
veg-oil;trade;
.W
TENSE TRADE TIES TO DOMINATE EC TALKS.
    BRUSSELS, March 15 - Tense trade relations with the U.S.
And Japan and concern about the foreign impact of a proposed
European Community (EC) tax on edible oils and fats are
expected to dominate talks by EC foreign ministers here
tomorrow.
    EC diplomats said Britain demanded the early debate on the
EC Executive Commission's proposal to impose a hefty tax on
domestic and imported oils and fats in an attempt to head off a
proposal it sees as extremely damaging to EC foreign relations.
    The proposal was the most controversial part of a reform
package, due to be discussed by EC farm ministers later this
month, of the EC's Common Agricultural Policy -- widely seen as
the root cause of the EC's persistent financial problems and of
tensions with major trading partners.
    The proposal is described by its promoters as a
stabilisation program which would penalise a new sector going
into massive overproduction and complement proposals to cut
cereals and dairy production, rather than a straight forward
tax.
    They say it would not only curb the growth of oils and fats
production and prevent imports from filling any vaccum left by
a fall in EC output, but would also save the EC some two
billion European Currency Units, over two billion dlrs, in farm
costs.
    It has provoked strong protests from domestic producers as
well as foreign exporters, led by the United States.
    The diplomats said the protests had been received from most
corners of the developing and developed world, ranging from
Senegal, Malaysia and Indonesia, to Brazil, Argentina, Canada,
Iceland and Norway.
    The proposal had little chance of approval by EC
governments, with West Germany as strongly opposed to it as
Britain, and Denmark, the Netherlands and Portugal also
unconvinced of its political or economic wisdom.
    Even Mediterranean countries such as Italy, France and
Greece, which backed similar proposals in the past, did not
seem as enthusiastic now because olive oil had been added to
the list of products affected.
    But the diplomats said a protectionist lobby in the U.S.
And elsewhere was using the proposal as an excuse to promote
anti-EC action, and the foreign ministers' debate should
demonstrate the strength of feeling against the proposal within
the EC and deprive its oponents of this argument.
    The ministers were also due to discuss proposals in the
U.S. Congress for a range of protecionist legislation such as a
bill that would curb EC textile exports.
    The diplomats said the ministers were expected to strongly
back a Commission warning to Washington that such a bill, if
enacted, would provoke swift EC retaliation.


.I 10084
.C
crude
.W
SAUDI BUSINESSMEN TO DISCUSS PRIVATE SECTOR.
    By Stephen Jukes, Reuters
    ABHA, Saudi Arabia, March 15 - Saudi Arabian business
leaders assembled for a conference aimed at thrashing out
problems facing the private sector of the kingdom's
oil-dependent economy.
    The meeting of some 500 top businessmen from across Saudi
Arabia comes at a time of guarded optimism in industry and
commerce following the OPEC pact to boost world oil prices.
    The four-day conference in this resort town, high in the
mountains above the Tihamah plain stretching to the Red Sea,
has been organised by Saudi Arabia's chambers of commerce.
    Finance Minister Mohammed Ali Abal-Khail and Commerce
Minister Suleiman Abdulaziz al-Salim will attend the first day.
    Bankers and businessmen said the conference will air
problems facing commerce and industry after last year's slide
in oil prices and examine ways to promote higher investment in
a private sector sorely short of finance.
    Government planners have long recognised that Saudi Arabia,
the world's largest crude exporter, needs to foster private
enterprise to diversify its oil-based economy.
    The fledgling private sector was hard hit by the Middle
East recession as early as 1983 and several big manufacturing
and trading companies ran into problems repaying loans.
    Renewed optimism this year stems largely from the accord
reached by OPEC last December to curb oil output and boost
prices to a benchmark level of 18 dlrs per barrel.
    With oil prices recovering, Saudi Arabia went ahead at the
turn of the year with long-delayed budget plans incorporating a
52.7 billion riyal deficit to be bridged by drawing down
foreign reserves.
    The simple act of publishing a budget restored a measure of
confidence to the business community.
    Some share prices have risen by more than 35 pct since last
November, while banks are generally reporting a slowdown in the
number of new non-performing loans.
    But not all bankers are convinced. One senior corporate
finance manager in Riyadh said: "Banks are still reluctant to
lend ... There is certainly more optimism in the air, but I am
not sure if it is firmly based."
    Some businessmen and bankers point out that government
spending is still under tight control and the non-oil economy
may still be contracting.
    Capital expenditure on large projects has been cut sharply.
A U.S. Embassy report on Saudi Arabia published just before the
budget said: "While industrialisation has continued to be one of
the government's highest priorities, the recession, the
payments problem and the lack of financing have reduced Saudi
and foreign investor interest in industry."
    It is the lack of fresh investment that is expected to be a
major issue among the businessmen gathered here.
    Official figures show the number of new licences for
industrial ventures fell 24 pct in the six months to March
1986, compared with the same period in 1985.
    Lending by the Saudi Industrial Development Fund, a major
source of industry backing, has fallen steadily since 1983.
    Trading companies have also been hit, some caught with huge
inventories of construction equipment as recession bit.
    Some firms laid off workers and cut bloated inventories.
Others have effectively been liquidated. A few have reached
agreement with bankers to extend debt repayments.
    The latest rescheduling is for the shipping-to-hotels
conglomerate REDEC. Its negotiators have just initialled a
draft accord to restructure payments on 1.3 billion riyals of
bank debt.
    Bankers and businessmen said the conference was also likely
to discuss the apparent reluctance of U.S. And British firms to
step up investment in the kingdom.
    A British government delegation has just left Riyadh after
holding preliminary talks on ways of offsetting the huge Saudi
outlay on a defence contract to supply 132 fighter aircraft
worth five billion stg.


.I 10085
.C
earn
.W
CITROEN EXPECTS HIGHER PROFITS, HELPED BY AX.
    NICE, France, March 15 - Automobiles Citroen expects rising
sales of its new AX compact car to help boost profits
significantly this year, continuing a financial recovery after
six straight years of losses, president Jacques Calvet said.
    Speaking to reporters during weekend trials for the new AX
sports model, he said: "All the budgetary forecasts that we have
been able to make ... Show a relatively significant improvement
in 1987, compared with 1986," he added.
    Citroen, part of the private Peugeot SA <PEUP.PA> group,
increased its share of the French new car market to 13.7 pct in
first two months 1987 from 12.1 pct a year earlier. It is
aiming for an average 12.8 pct share throughout the year after
11.7 pct in 1986.
    The firm believes it is on target to raise its share of the
European market, excluding France, to 3.2 pct this year from
2.9 pct in 1986.
    "Our first problem is to produce enough vehicles to meet the
demand," Calvet said. "This is a relatively new problem for us."
    Citroen lost close to two billion francs in 1984 but cut
the deficit to 400 mln in 1985, helped by moves to modernise
its range and improve productivity.
    Calvet indicated last December he expected Citroen's 1986
profit to be between 250 and 500 million francs.
    This weekend he said that those profit estimates "remain
about the same -- perhaps even a little more optimistic."
    Some of this optimism is due to the early success of the
AX, launched on the French market last October. It will be
available throughout most of western Europe within four months.
    The car has registered just over 20,000 sales.
    It is being built at Citroen's large plant at Aulnay-sous-
Bois in northern Paris, as well as at Rennes in Brittany and
Vigo in Spain, with production just reaching target level of
1,000 cars a day.
    The car, which Citroen markets as an intermediate model
between its long-running 2CV and the Visa, is designed to
compete with the Renault 5, Volkswagen Polo and Opel Corsa.
    The AX had built up its market share in France to around
four pct last month. Calvet said: "Our hope is that once the AX
is fully developed, we will have between 6.5 and seven per cent
of the national market."


.I 10088
.C
sugar
.W
NO TAIWAN SUGAR EXPORTS EXPECTED THIS YEAR.
    TAIPEI, March 16 - Taiwan is not expected to export sugar
this year because of falling production and growing domestic
consumption, state-owned Taiwan Sugar Corp said.
    A company spokesman told Reuters this will be the first
time in more than 40 years Taiwan has not exported sugar. Last
year, sugar exports totalled 149,755 tonnes.
    He said the actual production during the 1986/87 season
(November/May) is about 480,000 tonnes, barely enough to meet
local consumption. This compares with actual 1985/86 output of
570,000. He said the production fall was due to typhoon damage
to more than 6,000 hectares of canefields last year.


.I 10089
.C
money-fx
.W
LEADING INDUSTRIAL NATIONS TO MEET IN APRIL.
    By Peter Torday
    WASHINGTON, March 16 - Leading industrial nations will meet
again next month to review their accord on currency stability,
but U.S. Officials said financial markets are convinced for now
the countries will live up to commitments to speed up economic
growth.
    The narrow currency movements of recent weeks strongly
suggests the six leading industrial countries have tamed the
normally unruly financial markets and next month's talks seem
likely to build on that stability.
    A Reagan administration official said the Paris agreement
last month was the main reason markets were calm.
    But he said in an interview that financial markets also
understood, "That all six countries concluded that the measures
to be taken over a period of time in the future should foster
stability of exchange rates around current levels. That is in
fact what has happened since Paris."
    Monetary analysts said stability has been helped in part by
the decision of industrial nations to bury the hatchet and
cease to quarrel over short-term policy objectives.
    Instead they have focused on medium-term policy goals, but
left room to adjust their agreements with periodic meetings.
    The official refused to comment, however, on whether the
agreement included a secret pact to consider further
coordinated interest rate cuts -- a measure industrial nations
have taken jointly several times in the past year.
    On February 22, the United States, Japan, West Germany,
France, Britain and Canada agreed that major currencies were
within ranges broadly reflecting underlying economic
conditions, given commitments by Washington to cut its budget
deficit and by Toyko and Bonn to boost economic growth.
    The shake-up would strengthen the U.S. Position in
future international talks.
    "I think these changes will strengthen the President's hand
politically and the stronger he is politically the better off
we are with the Congress and the better off we are in
international fora," said the official, an Administration
economic policymaker. "So it would be beneficial to the
continued conduct of our initiatives."
    But the official also said the Administration would resist
calls for a tax increase to cut the budget deficit -- a target
Europeans say is crucial to help curb economic instability.
    Last week, dealers said the Federal Reserve intervened to
stop the dollar rising against the mark, which had breached
1.86 to the dollar. British authorities are also understood to
have intervened to curb sterling's strength.
    International monetary sources say finance ministers and
central bankers, who will review market performance and their
own economic prospects, will reassemble again in Washington
just before the April 9 policymaking meeting of the
International Monetary Fund.
    The sources said Italy, which refused to join the Paris
pact, was invited back by Treasury Secretary James Baker.
    Since Paris, there are signs West German growth is slowing,
while U.S. Officials said they were giving Japan until April to
show that an economic stimulus package was in the offing.
    Signs of concern about German prospects emerged recently
when Bundesbank (central bank) president Karl Otto Poehl told
bankers he would consider cutting West German interest rates if
the Fed was ready to follow suit.
    A Reagan Administration official said this would show there
had been some change in approach on the part of the central
bank in Germany.
    But he declined to comment on the prospects for action by
the Fed and the Bundesbank.
    "If there is such a provision it is private and if I talked
about it, it would no longer be private," said the official, who
asked not to be identified.
    Public comments by Fed officials suggest the central bank
is keeping credit conditions broadly unchanged, but if the
major economies continue to show sluggish growth and the U.S.
Trade deficit remains stubbornly high, further coordinated
action could be on the April agenda.
 REUTER...

.I 10090
.C
acq
.W
HARPER AND ROW <HPR> TO MULL OPTIONS AFTER BIDS.
    NEW YORK, March 15 - Harper and Row Publishers Inc said its
board of directors decided to take no action on two takeover
bids that the company has received. Instead, it appointed a
committee of independent directors to study strategic
alternatives for the 170-year-old firm.
    The alternatives include continuation of the company's
existing business plans, possible business combinations, sales
of stock, restructuring and the sale of all or part of the
company.
    Kidder Peabody and Co Inc has been retained to advise on
the alternatives, Harper and Row added.
    Private investor Theodore Cross last week offered 34 dlrs a
share for Harper and Row, prompting a rival bid of 50 dlrs a
share from another publishing firm, Harcourt Brace Jovanovich
Inc <HBJ>.
    After considering the two offers at a meeting on Friday,
the Harper and Row board decided not to act on them.
    The directors unanimously expressed their strong desire to
preserve the company's independence and take advantage of its
"considerable future prospects," according to director Winthrop
Knowlton, former chief executive and now chairman of the newly
established independent committee.
    "However, given the significant current interest in the
company, we also feel that we should carefully review all the
options available. The committee will consider all the
pertinent facts and alternatives.... We intend to make a
careful and informed decision but will proceed expeditiously to
a conclusion," Knowlton said.
    Pending its deliberations, Harper and Row's board has
postponed indefinitely a special meeting of stockholders that
had been scheduled for April 2 to discuss a proposal to
recapitalize the company's stock to create two classes of
shares with different voting rights.


.I 10091
.C
ipi
.W
SOVIET FIGURES SHOW ECONOMY STILL SHORT OF TARGETS.
    MOSCOW, March 16 - The Soviet economy recovered slightly
last month after a poor performance in January, but major
industries, including oil and machinery, are still short of
production targets, official figures show.
    Central Statistical Board data published in the weekly
Ekonomicheskaya Gazeta yesterday showed that industrial output
was only up 0.8 pct in the first two months of 1987 over the
same period of last year.
    However, the figure for January alone showed a fall in
output of 0.1 pct from a year earlier. Production is targetted
to increase 4.4 pct for all of 1987.
    The figures showed that only 77 pct of enterprises met
their supply obligations in January and February.
    Production of oil, the country's main export to Western
nations, hit 100 mln tonnes in January and February, up from
97.3 mln a year earlier, and exceeded its target by 0.5 pct.
    Economists said this reflected the huge investments poured
into the oil sector in recent months in an effort to reverse
the stagnation in production which began in November 1983.
    Falling world oil prices last year helped cause a decline
in Soviet trade with the West to 130 billion roubles from 141.6
billion in 1985.
    Ekonomicheskaya Gazeta said labour productivity targets
were also not fulfilled, but did not give figures.
    Economists said the overall data reflected exceptionally
bad weather at the start of the year and stricter quality
controls imposed on enterprises.
    Production in the machine-building sector, a priority in
Moscow's plans for economic renewal, recovered slightly in
February but was still 3.6 pct lower in the first two months of
the year compared with the same period of 1986.
    The figures showed that five republics produced less than
in the first two months of 1986.


.I 10094
.C
money-fx;reserves;
.W
PERU BEGINS FOREIGN EXCHANGE RATIONING.
    LIMA, March 15 - Peru will put into effect Monday a foreign
exchange rationing system for imports designed to stop a slide
in the country's international reserves, a government decree in
the Official Gazette said.
    Under the system, importers will be required to present a
bill from the foreign seller of goods and apply for a license
for foreign exchange. The central bank will have 10 days to
decide whether to issue the required foreign exchange.
    Net international reserves now total about 800 mln dlrs
compared to 1.54 billion dlrs a year ago.
    The system will be effective until the end of 1988.
    A ceiling for foreign exchange availability will be set by
a council with members from the central bank, the economy
ministry and the planning and foreign trade institutes. The
central bank will issue licenses to procure foreign exchange in
accordance with guidelines set by the council.
    Peru's reserves fell sharply due to a drop in the trade
surplus to about five mln dlrs in 1986 from 1.1 billion in
1985, according to preliminary central bank estimates.
   Total exports dropped to 2.50 billion dlrs last year against
2.97 billion in 1985.
   Imports last year rose sharply as gross domestic product
grew by about 8.5 pct, the highest economic growth level
registered in 12 years. Imports were about 2.49 billion dlrs in
1986 against 1.87 billion in 1985, according to preliminary
estimates.
    The cushion of reserves allowed Peru to take a hard-line
debt stance last year and suspend most payments due on its 14.3
billion dlr foreign debt.


.I 10096
.C
money-fx
.W
TAIWAN SAYS U.S. WANTS TAIWAN DOLLAR TO APPRECIATE.
    TAIPEI, March 16 - The United States wants Taiwan's
currency to appreciate faster to reduce Taiwan's trade surplus
with the U.S., A senior trade official said.
    Board of Foreign Trade director Vincent Siew told reporters
on Saturday U.S. Officials told him in Washington last week
that unless Taiwan allowed its dollar to rise faster it would
face retaliation.
    Siew returned from Washington on Friday after the U.S
responded to Taiwan's request to increase its textile export
quotas by promising further talks in May. Taiwan's surplus with
the U.S. Hit a record 13.6 billion U.S. Dlrs in 1986.
    Washington signed a three-year accord with Taipei last year
limiting textile export growth to 0.5 pct a year.
    Siew said the Taiwan dollar had risen by about 15 pct
against the U.S. Dollar since September 1985.
    It surged last week amid indications Washington was seeking
a major rise in its value. It rose four cents against the U.S.
Dollar on Saturday to close at 34.59.
    Western trade sources told Reuters Taiwan and the U.S. Have
been holding talks on the currency issue but added it is not
clear how far Washington wants to see the Taiwan dollar rise.


.I 10098
.C
grain;corn;
.W
TANZANIA WANTS TO EXPORT 200,000 TONNES OF MAIZE.
    DAR ES SALAAM, March 16 - Tanzania seeks to export a
surplus of 200,000 tonnes of maize from last year's bumper
harvest, agriculture minister Paul Bomani said yesterday.
    The 1986 maize crop was officially estimated at 2.1 mln
tonnes, but only a fraction of this was marketed, with most
grain consumed by the farmers who grew it.
    The state-owned National Milling Corp (NMC) meanwhile said
it is trying to sell 190,742 tonnes of maize stored in
different parts of the country.
    NMC acting general manager John Rubibira said Tanzania has
only 56,000 tonnes of silo storage capacity, concentrated in
Dar es Salaam, Arusha in the north and Iringa in central
Tanzania.
    In addition, the country has 450,000 tonnes of flat storage
capacity, he added.
    Rubibira said the government is planning to build new silos
in the main maize producing areas of Iringa, Mbeya, Ruvuma and
Rukwa.


.I 10101
.C
earn
.W
<THE NATIONAL BANK OF NEW ZEALAND LTD>.
    WELLINGTON, March 16 - Year to December 31, 1986
    Net profit 78 mln N.Z. Dlrs vs 45 mln
    Pre-tax profit 147 mln vs 88 mln
    Total assets 7.7 billion vs 6.4 billion
    Notes - The company is 100 pct owned by Lloyds Bank Plc
<LLOY.L>. Results include for the time first a pre-tax profit,
of 11 mln N.Z. Dlrs, from Australian unit <Lloyds Bank NZA
Ltd>.


.I 10102
.C
bop;trade;
.W
AUSTRALIAN CURRENT ACCOUNT DEFICIT SEEN NARROWING.
    SYDNEY, March 16 - Australia's current account deficit for
February is expected to narrow to a range of between 700 mln
and one billion dlrs, from the unrevised January level of 1.29
billion, market economists polled by Reuters said.
    Statistics Bureau February figures are out tomorrow.
    The economists said a key element in the narrowing would be
a reversal of the drop in exports which took place in January,
after a sharp rise in December when the deficit was only 598
mln dlrs.
    As an example they quoted wheat export volume, which rose
about 30 pct in February after dropping as much in January.
    A lack of aircraft imports in February should also
contribute on the trade account although it is still likely to
remain in deficit, the economists said.
    Other positive influences on the current account balance
should be a decline in the invisibles deficit following a
seasonal fall in interest payments and the dropping out of
certain official aid payments, they said.
    They said the Australian dollar, which last week touched an
eight-month high of 0.6900 U.S. Dlrs but is now around the
0.6800 level, should not react adversely to the figures unless
the current account shortfall tops one billion dlrs.


.I 10103
.C
money-fx
.W
ZAMBIA, IMF TALKS HIT PROBLEMS OVER FOOD SUBSIDIES.
    LUSAKA, March 16 - Zambia's talks with the World Bank and
International Monetary Fund (IMF) on a financial rescue package
have run into difficulties on the issue of food subsidies, an
official newspaper said.
    The Times of Zambia, which is run by the ruling United
National Independence Party (UNIP), quoted official sources as
saying the IMF and World Bank had refused to continue financing
food subsidies and were pressing the government to explain how
it proposes to pay for them.
    President Kenneth Kaunda tried to abolish maize subsidies
last December, in line with IMF recommendations, but the move
caused maize meal prices to double overnight and led to riots
in which 15 people were killed.
    The subsidies were immediately restored as part of moves to
quell the disturbances, but they are estimated to cost the
government about 500 mln kwacha per year.
    The Times of Zambia said another major issue in the
government's current talks with the IMF and World Bank was the
remodelling of Zambia's foreign exchange auction.
    The central bank's weekly auction of foreign exchange to
the private sector has been suspended since the end of January,
pending modifications to slow down the rate of devaluation and
dampen fluctuations in the exchange rate.
    The kwacha slid to around 15 per dollar under the auction
system, losing 85 pct of its value in 16 months. However, since
the end of January it has been revalued to a fixed rate of nine
per dollar.
    Banking sources said Zambia was persuaded by the World Bank
and IMF to lift its proposed ceiling of 12.50 kwacha per dollar
on the currency's devaluation once the auctions restart.
    According to the Times of Zambia, the IMF team, led by
assistant director for Africa Paul Acquah, is due to conclude
its talks with the government on schedule on March 23.
    The IMF mission arrived in Lusaka on February 26 and its
talks with the government have taken longer than expected.


.I 10104
.C
ship
.W
JAPAN LINE SELLING TANKERS AND BULKERS.
    TOKYO, March 16 - Major tanker operator, Japan Line Ltd
<JLIT.T>, is selling 20 VLCCs and several bulk carriers for
scrap or further trading, industry sources said.
    The tanker disposals include Japan Orchid (231,722 dwt),
Japan Lupinus (233,641 dwt), Sovereign (233,313 dwt), Rosebay
(274,531 dwt), Saffron (268,038 dwt) and Cattleya (267,807
dwt), all of which have been reported on the London sale and
purchase market, they said, but refused to give further
details.
    Japan Line officials declined to comment.


.I 10105
.C
cocoa
.W
(CORRECTED)-IVORY COAST CONFIRMS PRESENCE AT TALKS.
    By Roger May, Reuters
    ABIDJAN, March 15 - A senior Ivory Coast Agriculture
Ministry official confirmed his country's backing for a new
international cocoa pact and said Ivorian delegates would be
present at talks on its buffer stock starting this week.
    The official told Reuters that Ivorian Agriculture Minister
Denis Bra Kanon would attend the opening of the talks, convened
by the International Cocoa Organization (ICCO), in London on
Monday.
    While Bra Kanon is due to return home this week for funeral
ceremonies for a sister of Ivorian President Felix
Houphouet-Boigny, scheduled to be held in the country's capital
Yamoussoukro between March 19-22, senior Ivorian delegates will
be present throughout the London talks, the official said.
    Bra Kanon is chairman of the ICCO Council and rumours that
he or Ivorian delegates might be delayed because of public
mourning in the West African nation helped depress already low
world cocoa prices Friday.
    The official said Ivory Coast continued to support the new
pact, which was agreed in principle last year by most of the
world's cocoa exporters and consumers.
    He also said Bra Kanon would fulfil his duties as ICCO
Council chairman during the talks, scheduled to end on March
27.
    The meeting aims to set rules for the operation of the
pact's buffer stock which producers hope will boost a market
hit by successive world cocoa surpluses.
    Ivory Coast did not participate in the last international
cocoa pact and its decision to join the new accord has sparked
hopes that it will be more successful in supporting prices.


.I 10107
.C
cpi
.W
LANGE PREDICTS N.Z. INFLATION TO FALL TO 8-10 PCT.
    WELLINGTON, March 16 - New Zealand's inflation rate could
fall to eight pct in the coming year, Prime Minister David
Lange said.
    He said forecasts to be released soon by research groups
would predict a rate of around eight or nine pct in the 12
months to the end of March 1988, against 18.2 pct in calendar
1986.
    "I predict it will be something between eight and 10 per
cent," he told a news conference.
    Lange would not name the forecasting groups.


.I 10108
.C
rubber
.W
MALAYSIA WELCOMES ACCORD ON NEW RUBBER PACT.
    KUALA LUMPUR, March 16 - Malaysian Primary Industries
Minister Lim Keng Yaik welcomed the basic accord reached over
the weekend in Geneva between producers and consumers on a new
International Natural Rubber Agreement (INRA).
    "This is a good development and if a new pact is adopted
this week it will augur well for the rubber industry and prices
in the long term," he told Reuters here.
    Negotiators at a United Nations conference on a new INRA
resolved differences and agreed last Saturday on basic elements
for a new pact to replace the current one, which expires in
October.
    Conference Chairman Manaspas Xuto said legal drafting of
the new pact will begin this week and it is expected to be
formally adopted by some 40 countries on March 20.
    Malaysia, the world's top producer, acted as spokesman for
producers at the talks, which began on March 9.
    Malaysian traders said they expected prices to firm by a
few cents on the news that a pact is expected to be adopted.
    Prices will also firm in the short term because some
370,000 tonnes of rubber held in INRA buffer stock will not be
liquidated with a new pact in sight, they said.


.I 10109
.C
ipi;inventories;
.W
JAPAN JANUARY INDUSTRIAL PRODUCTION REVISED UP.
    TOKYO, March 16 - Japan's January seasonally adjusted
industrial production index (base 1980) was revised upwards to
122.3 from a preliminary 122.0, the Ministry of International
Trade and Industry said.
    The revised adjusted January index was down 0.5 pct from
December when it rose 3.6 pct from a month earlier.
    The revised unadjusted January index rose 0.5 pct from a
year earlier, after a one pct year-on-year December rise.
    The adjusted producers' shipment index (base 1980) for
January was revised upward to 117.7 from a preliminary 117.4.
    The index was down 0.7 pct from December when it rose three
pct from a month earlier. The revised unadjusted index was up
1.0 pct from a year earlier after a 1.4 pct year-on-year
December rise.
    The adjusted index of producers' inventories of finished
goods (base 1980) for January was unchanged from a preliminary
105.9. The index was down 0.3 pct from December when it rose
1.1 pct. Unadjusted, the revised index was down 2.3 pct from a
year earlier after a 2.1 pct year-on-year drop in December.


.I 10114
.C
money-fx
.W
GERMAN BANKING AUTHORITIES WEIGH SWAP REGULATIONS.
    By Alice Ratcliffe, Reuters
    FRANKFURT, March 16 - German banking authorities are
weighing rules for banks' off-balance sheet activities in an
attempt to cope with the growing volume of sophisticated
capital market instruments, banking sources said.
    Interest rate and currency swaps and currency options are
under closest scrutiny, and if revisions are made they may
resemble regulation jointly proposed by the U.S. And U.K. To
Japan. Juergen Becker, director of the Bundesbank's division of
banking law and credit supervision, said the U.S.-British
proposals were interesting, but declined to elaborate.
    But banking sources said West Germany was more likely to
produce its own conclusions than to adopt foreign proposals.
    "There is no formal plan yet, but talks are in the latter
stages," one representative of the German Banking Association in
Cologne said. Bankers expect rule changes this year.
    All alterations must be approved by the Bundesbank, West
Germany's four major banking associations and the Federal
Banking Supervisory Office.
    Talks have been slowed by the fact that fundamental changes
would require a revision of Germany's credit law, which has
been in effect since 1934.
    Authorities favour reinterpreting the credit law to fit
present circumstances in order to avoid the long parliamentary
political process of changing it, banking sources said.
    Since the beginning of 1984 the banking law has limited
banks' lending to 18 times shareholders' equity plus reserves,
on a consolidated basis.
    But lending ratios do not extend to several newer
instruments such as spot and forward currency contracts,
currency and interest swaps, commercial paper programs,
currency options, interest rate futures in foreign currencies
and various innovative types of interest rate hedges.
    The sources said the main value of the U.S.-U.K. Proposals
lay in differentiating between different types of risk factor,
and, for instance, in placing greater weight on currency swaps
than interest swaps. But even if German banking authorities
agree with some of the assessments of swaps, they disagree on
how to find balance sheet equivalents for the risk.
    U.S.-British proposals include a complicated series of
formulae for assessing the stream of payments involved in
swaps, whose ultimate risk is borne by the financial
intermediary, especially when counterparties remain anonymous.
This is the so-called market-to-market value.
    But German authorities are likely to consider this much too
complex and to base their evaluation instead on a schedule of
lending ratings assigned according to the creditworthiness of
the borrowers involved, the sources said.
    The weightings, also likely if lending ratios are extended
to include banks' securities portfolios, are zero for public
authorities, 20 pct for domestic banks, 50 pct for foreign
banks and 100 pct for other foreign and non-bank borrowers.
    A further complication is that the more flexible
definitions of equity allowed in the U.S. And the U.K. May put
German banks at a competitive disadvantage, the sources said.
    Stricter definitions here also mean the use of a version of
the U.S.-U.K. Proposals could far exceed the intent of the U.S.
And British authorities, the sources said.
    One specialist for Dresdner Bank AG said a long-dated
foreign exchange forward transaction could, for instance, be
brought under the same rule as a cross-currency swap, despite
the fact that the risk may be entirely different.
    How new regulations will affect foreign banks here was
uncertain. Many have converted to full subsidiary status and
applied for a full banking licence over the last two years in
order to lead-manage mark eurobonds.
    But as their equity capital is fairly small, tight lending
ratios will severely hamper foreign banks' freedom of movement,
particularly in the growing business of currency swaps, if they
are required to include more transactions in the balance sheet,
the sources added.


.I 10116
.C
acq
.W
BHP TO MERGE BHP MINERALS AND UTAH INTERNATIONAL.
    MELBOURNE, March 16 - The Broken Hill Pty Co Ltd <BRKN.S>
said it will merge its BHP Minerals division and <Utah
International Inc> into a single business unit under a common
management structure.
    The merger will be effective June 1, coinciding with the
retirement of Utah International chairman and chief executive
Bud Wilson, BHP said in a statement.
    The new BHP-Utah Minerals International Group will be
headed by Jim Curry as executive general manager and chief
executive officer. Curry is currently executive vice-president
of Utah International, BHP said.
    <BHP Petroleum (Americas) Inc>, formerly part of Utah
International, will become a subsidiary of BHP's renamed <BHP
Petroleum International>, now <BHP Petroleum Pty Ltd>, the
company said.
    BHP will also bring its Queensland coal operations under
one management structure and consolidate minerals marketing and
sales offices in various markets throughout the world.
    BHP acquired Utah from General Electric Co <GE> in 1984.
    Utah's assets include stakes of 40.25 to 52.25 pct in seven
large Central Queensland coking mines, 49 pct of the Samarco
iron ore operation in Brazil, 60 pct of La Escondida copper
deposit in Chile, the Island Copper mine at Port Hardy in
Canada, 70 pct of a coal mine and 30 pct of a gold mine in
South Africa and coal and other mines in the U.S.
    BHP Minerals' assets include wholly and partly-owned iron
ore mines, coal mines, manganese and base-metal operations or
prospects and 30 pct of the Ok Tedi gold-copper project in
Papua New Guinea.


.I 10117
.C
money-fx;yen;
.W
******Bank of Japan satisfied with yen around current range, senior bank official says.
Blah blah blah.

.I 10118
.C
retail
.W
GERMAN RETAIL TURNOVER RISES ONE PCT IN JANUARY.
    WIESBADEN, March 16 - West German retail turnover rose a
real one pct in January compared with the same month a year
earlier, according to provisional data from the Federal
Statistics Office.
    There were 26 shopping days in January this year, the same
as in January 1986, a Statistics Office statement said.
    A Statistics Office official added retail turnover had
risen by 7.6 pct in December compared with the year-ago month,
a slight upward revision from the 7.5 pct increase
provisionally posted.


.I 10119
.C
money-fx;gnp;yen;
.W
BANK OF JAPAN SATISFIED WITH YEN AT CURRENT RANGE.
    TOKYO, March 16 - The Bank of Japan is satisfied with the
yen around its current range, a senior central bank official
told reporters.
    He said the pledge by major industrial nations in Paris
last month to cooperate to hold exchange rates around current
ranges applied in both directions, a dollar fall or a dollar
rise.
    Unilateral intervention itself cannot ensure currency
stability, but it can be useful when coordinated with other
policies and with other central banks, he said.
    The Bank of Japan is rather confident currency stability
will continue for some time, the senior bank official said, but
declined to be more specific.
    Finance Minister Kiichi Miyazawa told parliament on Friday
the current dollar/yen exchange rate is not necessarily
satisfactory for the Japanese economy.
    Asked what factors might destabilize the markets, the
official cited a lessening of market fear about intervention, a
completely unexpected change in the economy of Japan, the U.S.
Or West Germany, or resumption of comments by government
officials seeking to talk the dollar up or down.
    The senior bank official said he expects Japan's gross
national product (GNP) to grow three pct or slightly more in
the fiscal year beginning in April. That would be little
changed from the performance expected this year.
    Domestic demand may grow nearly four pct in 1987/88, but
the external sector will have a negative impact on GNP of
nearly one percentage point, he said.
    He said there was virtually no room for further monetary
policy action to boost the economy. The economy's performance
in the future very much depends on fiscal policy, he added.
    The central bank's monetary policy has already done its
part in stimulating the economy, the senior bank official said.
The Bank of Japan has cut its discount rate five times over the
last year and a half.
    Although the central bank does not see any imminent risk of
inflation, there could be some problems in the future, he said.
"We are sitting on a barrel of powder, but fortunately it may
still be wet," he added.
    Liquidity among private households and especially the
corporate sector has increased substantially, he said.
    The liquidity is the reason for the recent boom of stock
exchange prices, the bank official said. This inflow of funds
into the stock exchange, occurring also in other countries, may
continue, he said.
    The senior official said the Bank of Japan is hoping
Federal Reserve chairman Paul Volcker will be re-appointed when
his current term expires later this year.
    "He's a great man," the official said, adding that more and
more people expect his reappointment.
    Turning to exchange rates, the official said the
substantial drop in the dollar is beginning to have an effect
on reducing the imbalance in world trade, even though the
impact has taken longer than expected to show through. Even the
U.S. Trade position has begun to feel the impact, although so
far it has not been very strong, he said.


.I 10120
.C
money-supply
.W
BANGLADESH MONEY SUPPLY RISES IN DECEMBER.
    DHAKA, March 16 - Bangladesh's broad-based M2 money supply
rose 6.95 pct to 132.79 billion taka in December after rising
0.51 pct to 124.16 billion in November and 3.07 pct to 114.22
billion in December 1985, the Central Bank said.
    On a year on year basis, M2 rose 16.25 pct in the 12 months
to December, 12.04 pct to November and 16 pct to December 1985.
    Narrowly-based M1 rose 9.55 pct to 50 billion taka against
a fall of 0.45 pct to 45.64 billion in November and a 3.03 pct
rise to 45.51 billion to December 1985, it added.
    Year on year, M1 rose 9.86 pct in December.


.I 10122
.C
gold
.W
JAPAN'S DOWA MINING TO PRODUCE GOLD FROM APRIL.
    TOKYO, March 16 - <Dowa Mining Co Ltd> said it will start
commercial production of gold, copper, lead and zinc from its
Nurukawa Mine in northern Japan in April.
    A company spokesman said the mine's monthly output is
expected to consist of 1,300 tonnes of gold ore and 3,700 of
black ore, which consists of copper, lead and zinc ores.
    A company survey shows the gold ore contains up to 13.3
grams of gold per tonne, he said.
    Proven gold ore reserves amount to 50,000 tonnes while
estimated reserves of gold and black ores total one mln tonnes,
he added.


.I 10123
.C
earn
.W
JAPAN BUSINESS DECLINE SEEN BOTTOMING OUT.
    TOKYO, March 16 - The extended decline in Japan's overall
business performance was likely to bottom out in the current
January-March quarter, the Finance Ministry said.
    Improved corporate earnings and better prospects for the
stability of the yen had made companies more optimistic, it
said after carrying out a quarterly survey.
    The survey, conducted in February, was based on
questionnaires returned by 8,328 large and small firms in all
sectors except the finance and insurance industries.
    The survey said overall corporate earnings were expected to
turn positive with an estimated 0.4 pct year on year increase
in the second half of fiscal 1986 ending on March 31 after a
5.4 pct decrease in the first half.
    Corporate earnings will grow further in the first half of
fiscal 1987, rising an estimated 10.7 pct, it added.
    Manufacturers' earnings, hit hard by the yen's steady rise
against the dollar, will rise 7.7 pct in first-half fiscal 1987
after falling 10.7 pct in the second half of fiscal 1986, it
said.
    Overall earnings of non-manufacturing companies will rise
11.8 pct year on year in the first half of fiscal 1987 after
growing 9.8 pct in the second half of fiscal 1986, the survey
said.
    It said this figure was bolstered by profits of firms such
as electric power and gas companies which have benefitted from
the yen's appreciation.


.I 10125
.C
acq
.W
CARLTON BUYS STAKE IN CENTRAL INDEPENDENT TV.
    LONDON, March 16 - Carlton Communications Plc <CCML.L> said
in a statement it had purchased a 20 pct stake or some 5.1 mln
shares in Central Independent Television from Ladbroke Group
Plc <LADB.L> at 578p per share.
    The consideration of 29.5 mln stg will be met with 18.2 mln
stg in cash and the issue of one million ordinary Carlton
shares, it said.
    Central showed pretax profits up by 57 pct to 18.8 mln stg
for the year ended 30 September 1986.


.I 10127
.C
sugar
.W
EUROPEAN BEET PLANTINGS SEEN LITTLE CHANGED.
    By Douglas Learmond, Reuters
    LONDON, March 16 - European sugar beet plantings are
expected to show little change from last year, despite recent
firmness in world prices, analysts and industry sources said.
    A Reuter survey of planting intentions showed that while,
so far, European Community (EC) growers plan unchanged to lower
areas, increases are expected in some Eastern European nations.
    Trade analysts said their private reports give similar
results and do not differ significantly from the first estimate
of stagnant 1987 European beet plantings made last week by West
German sugar statistician F. O. Licht.
    Areas may be slightly lower but analysts and agricultural
experts said the steady rise in yields resulting from improved
seed varieties and better farming techniques could offset this.
In recent years, good autumn weather has given yields a late
boost, making up for lower areas despite some disappointing
starts to growing seasons.
    Changes in EC areas reflect the extent to which producers
will grow so-called "C" sugar for unsubsidised sale to the world
market. This is what is produced in excess of the basic area
needed to meet the EC "A" and "B" quotas, which receive full and
partial price support, respectively.
    Some analysts said the open row that broke out last week
between producers and the EC commission over its export policy
could have serious implications for future sugar output.
    Beet producers have threatened to effectively dump nearly
one mln tonnes of white sugar into EC intervention stocks as
they feel export subsidies have been too low to compensate for
the gap between high EC internal and low world market prices.
    However, with the EC budget stretched to breaking point,
this could give treasury ministers extra resolve in resisting
higher guaranteed sugar prices and build a case for a future
cut in the basic "A" and "B" quotas, they added.
    In France, the largest producer of EC quota and non quota
sugar, the sugar market intervention board FIRS said first
planting intentions indicate an area about the same as last
year's 421,000 hectares, nine pct below the previous year.
    "The basic trend is towards stability," a FIRS spokesman
said. Unlike world market raw sugar prices in dollars, white
sugar French franc prices are not particularly high and are not
encouraging higher planting levels, he said. Beet sugar output
last year was 3.37 mln tonnes, with an average yield of 8.00
tonnes per ha, the highest in the EC apart from the Netherlands
but below 8.52 the previous year and a five year average 8.11.
    In West Germany, recent price rises have not altered plans,
since planting decisions were taken a few months ago, industry
sources said. The farm ministry said a December survey is still
valid and plantings should be cut slightly after being trimmed
by just under four pct in 1986 when yields were above average.
    Licht last week estimated West German plantings at a
reduced 385,000 hectares against 399,000 last year.
    British Sugar Plc, the monopoly beet processor, has signed
up U.K. Farmers to grow 8.1 mln tonnes of beet. This should
yield about 1.25 mln tonnes of whites. Last year's crop
equalled the second highest ever at 1.32 mln tonnes.
    British Sugar has "A" and "B" quotas totalling 1.144 mln tonnes
of whites and its "C" output is due to improved yields from more
consistent disease-resistant seed types.
    Recent price rises have not altered Polish plans, Wincenty
Nowicki, a deputy director of Cukropol, the Amalgamated Sugar
Industry Enterprises, said. World prices are still below Polish
production costs and there is no way to convince farmers to
increase the area above the already signed contracted level.
    The national plan, set before prices began to rise, put
plantings this year at 460,000 hectares, against 425,000 in
1986, Nowicki said. Last year production was 1.74 mln tonnes.
    World prices have less impact in Italy than in France or
Germany as it is traditionally not an exporter but is geared to
the domestic market, an official at the national beet growers'
association said. Italian sowings are not yet complete but
surveys suggest a drop from last year's 270,000 ha, especially
in the north where some farmers have switched to soya.
    Beet output last season of 15.5 mln tonnes yielded a higher
than expected 1.72 mln tonnes of white sugar.
    Dutch plantings are expected to fall to 130,000 ha from a
record 137,600 in 1986 as a new self-imposed quota system comes
into force, a spokesman for Centrale Suiker, the second largest
Dutch sugar processor, said.
    The new system aims for an average of around 915,000 tonnes
of white sugar and to cut output of "C" sugar. Last year, the
Netherlands produced a record 1.2 mln tonnes of white sugar
against a combined "A" and "B" quota of only 872,000 tonnes.
    "The world price of sugar would have to rise much higher
than it has done recently to make planned production of "C" sugar
really worthwhile," the spokesman said.
    Western agricultural experts in Moscow said Soviet planting
intentions are likely to be unchanged. Licht put this year's
Soviet beet area at 3.40 mln ha, against 3.44 mln last year.
    Hungary is expanding its beet area to 105,000 ha from some
95,000 in 1986, the official MTI news agency said, but
diplomats said policy is to balance supply with domestic
demand.
    The Spanish ministry of agriculture said beet sowings are
estimated unchanged at 180,000 ha this year.
    A spokesman for Denmark's largest beet concern, De Danske
Sukkerfabrikker A/S, said its 1987 sugar target was unchanged
from 1986 at 365,000 tonnes from a steady area of 60,000 ha.
    In Sweden, where beet is grown just to meet domestic
demand, the planted area is seen little changed at 51,000 ha
against 51,300 last year, according to a spokesman for sugar
company Svenska Sockerfabriks AB.
    Last year, Irish yields were the lowest for 10 years due to
late sowings and the state-run Irish Sugar Plc said the 1987
plantings target is the equivalent of 36,400 hectares, down
from 37,600 in 1986.


.I 10128
.C
jobs
.W
SWISS UNEMPLOYMENT FALLS TO 0.9 PCT IN FEBRUARY.
    BERNE, March 16 - Swiss unemployment edged down to 0.9 pct
of the working population from one pct in January and in
February 1986, the Federal Office of Industry, Trade and Labour
said.
    Seasonally adjusted, however, there was a slight rise in
unemployment.
    The number out of work fell to 28,439, down 1,142 compared
with the previous month. The number of vacant positions
registered with employment offices stood at 11,968 against
10,694 in January.


.I 10129
.C
reserves
.W
MALAYSIA'S GOLD AND FOREIGN EXCHANGE RESERVES RISE.
    KUALA LUMPUR, March 16 - Malaysia's gold and foreign
exchange reserves rose to 16.07 billion ringgit in February
from 15.73 billion in January and 12.23 billion in February
1986, Bank Negara Malaysia said.
    The central bank said cumulative assets at end-February
fell to 20.02 billion ringgit from 20.68 billion at end-January
but were up from 17.07 billion at end-February last year.
    Holdings of federal government securities dropped to 876
mln ringgit in February from 1.70 billion a month earlier and
2.30 billion in February 1986.
    Malaysia's special drawing rights rose to 355 mln ringgit
at end-February from 352 mln at end-January and 286 mln at
end-February 1986, the bank said.
    The IMF position was unchanged from January at 507 mln but
was above the 422 mln in February a year ago.
    Currency in circulation in February fell to 7.43 billion
ringgit from 8.32 billion a month earlier but was up from 7.18
billion in February last year.


.I 10131
.C
palm-oil;veg-oil;
.W
MALAYSIAN CRUDE PALM OIL OUTPUT FALLS IN FEBRUARY.
    KUALA LUMPUR, March 16 - Malaysian crude palm oil (cpo)
production fell to an estimated 270,400 tonnes in February from
an estimated 273,300 tonnes in January and 332,995 in February
1986, the Palm Oil Registration and Licensing Authority (PORLA)
said.
    Cpo stocks fell to an estimated 286,440 tonnes in February
from 287,940 in January and 653,411 in February last year.
    Processed palm oil stocks in February fell to an estimated
193,060 tonnes from 205,060 in January and 225,576 in February
1986.
    The January and February figures are subject to revision.


.I 10132
.C
earn
.W
PEARSON PLC <PSON.L> YR ENDED DEC 31.
    LONDON, March 16 -
    Shr 37.4p vs 30p.
    Final div 7p, making 12p vs 10p.
    Pre-tax profit 121.1 mln stg vs 109.3 mln.
    Net profit before minorities 76.6 mln stg vs 62.8 mln.
    Turnover 952.6 mln vs 970.1 mln.
    Pre-interest profit 132.1 mln vs 124.6 mln.
    Net interest 11 mln vs 15.3 mln.
    Tax 44.5 mln vs 46.5 mln.
    Minority interests 3.1 mln vs 5.2 mln.
    Extraordinary debit 9.1 mln vs credit 11.5 mln.
    Note - Extraordinary debit reflected full provision for
discontinuing the Financial Times's printing operations at
Bracken House in 1988, partly offset by gains on disposals.


.I 10133
.C
trade
.W
CHINA REPORTS 700 MLN DLR TWO-MONTH TRADE DEFICIT.
    PEKING, March 16 - China's trade deficit totalled 700 mln
dlrs in the first two months of this year, according to figures
released by the State Statistics Bureau.
    The New China News Agency quoted the Bureau as saying
foreign trade totalled 9.3 billion dlrs in the period, of which
exports were worth 4.3 billion dlrs.
    The bureau said total trade volume was up 2.5 pct on the
same 1986 period, with exports up 18.1 pct, but it gave no
other comparative figures.
    China's 1986 trade deficit totalled 12 billion dlrs,
official figures show.


.I 10135
.C
earn
.W
<POCLAIN> OFFERS PAR RIGHTS ISSUE.
    PARIS, March 16 - French machinery maker <Poclain>, 40 pct
owned by <Tenneco Inc>, said it will raise its capital to 791
mln francs from 91 mln by a 100 for 13 rights offering to
shareholders priced at par of 10 francs a share.
    The offer, between March 25 and April 13, is the second
stage of a capital restructuring plan announced in December
under which Tenneco will become Poclain's majority shareholder.
    In the first stage Poclain reduced its capital to 91 mln
from 455 mln by reducing the nominal value of its shares to 10
francs from 50.
    Poclain traded Friday on the Paris Bourse at 38.20 francs.


.I 10136
.C
money-fx
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, March 16 - The Bank of England said it invited an
early round of bill offers from discount houses after
forecasting a shortage in the system of some 1.05 billion stg.
    Among the main factors affecting liquidity, bills maturing
in official hands and treasury bill take-up will drain some
1.07 billion stg while exchequer transactions will take out
around 335 mln stg and bankers' balances below target five mln
stg.
    Partly offseting these outflows, a fall in note circulation
will add some 355 mln stg to the system today.


.I 10139
.C
acq
.W
MANILA GOVERNMENT TO TAKE OVER SAN MIGUEL BOARD.
    MANILA, March 16 - A government commission that controls 51
pct of <San Miguel Corp> (SMC) stock will increase its nominees
on the firm's 15-member board to nine from six.
    "We want to correct business practices," Ramon Diaz, chairman
of the Presidential Commission on Good Government (PCGG), told
Reuters.
    "Right now there are a lot of companies that keep so many
things from their shareholders and one of them is San Miguel,"
he said.
    A San Miguel spokesman declined comment.
    Diaz said New York investment bank Allen and Co Inc told
the PCGG it was interested in tendering for all outstanding SMC
stock, with the subsequent dispersal of 60 pct of the stock to
Filipino investors to comply with investment laws.
    He said Australian businessman and brewer Alan Bond and the
brewing company Elders IXL Ltd <ELXA.S> were interested in
buying 40 pct each of SMC stock.
    He added that the PCGG wanted some foreign input but would
not allow foreign control of the brewing and food conglomerate,
the Philippines' biggest manufacturing concern.
    Diaz said the PCGG did not plan to remove SMC president
Andres Soriano from his family company.
    "He has tremendous prestige to run the company," Diaz said.
"We appreciate his management, but certainly some practices have
to be corrected."


.I 10141
.C
earn
.W
CIE BANCAIRE IN ONE-FOR-FIVE BONUS SHARE ISSUE.
    PARIS, March 16 - <Cie Bancaire>, a subsidiary of recently
privatised banking group Cie Financiere de Paribas <PARI.PA>,
said it is issuing 2.35 mln new 100 francs nominal shares on
the basis of one for five already held.
    The operation will begin on March 31, a spokesman said.
    Cie Bancaire also said it has increased its capital to 1.41
billion francs from 1.17 billion by the incorporation of 237.74
mln francs of reserves.


.I 10144
.C
cpi
.W
ISRAELI INFLATION RATE IS 1.0 PCT IN FEBRUARY.
    JERUSALEM, March 16 - Israel's inflation rate for February
was one pct, compared to 2.1 pct in January and 1.6 pct in
February 1986, a spokesman for the Central Bureau of Statistics
said.
    Inflation for the 12 months ending in February was 23 pct,
the spokesman said.
    February price rises were mostly in housing, health,
education, entertainment and transport.
    Wage and price controls have been in force since August
1985. Officials said the controls have helped soften the effect
of a recent 10 pct devaluation of the shekel.


.I 10145
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 90 MLN STG EARLY HELP.
    LONDON, March 16 - The Bank of England said it provided the
money market with assistance worth 90 mln stg in response to an
early round of bill offers from discount houses.
    Earlier, the bank estimated the shortage in the system
today at some 1.05 billion stg.
    The bank bought bills for resale to the market in equal
amounts on April 1, 2 and 3 at an interest rate of 10-7/16 pct.


.I 10147
.C
acq
.W
BOND DEFERS RIGHTS ISSUE, MULLS PROJECT PARTNERS.
    HONG KONG, March 16 - <Bond Corp International Ltd>, a
subsidiary of the Australian-based Bond Corp Holdings Ltd
<BONA.S>, said it would defer its planned rights issue but
still wants the issue to be made before July 31.
    No date has been set for the issue, announced in January.
    In a document to shareholders, Bond Corp said the delay
follows its receipt of a 240 mln H.K. Dlr loan from its parent
company to meet the first payment on the newly acquired Bond
Centre commercial complex in central Hong Kong.
    It also wants outside partners to take up to 50 pct in the
project, the company said.
    The January announcement said the rights issue would
finance Bond Corp's 1.4 billion dlr acquisition of a 23.77 pct
stake in HK-TVB Ltd <TVBH.HK> from film magnate Run Run Shaw.
    The company then reached an agreement with a consortium led
by Sino Land Co Ltd <SINO.HK> to buy a commercial complex that
is still under construction for 1.9 billion dlrs.
    Bond International said in the document that except for the
240 mln dlr loan, the deal would be financed from internal
resources and by selling an interest in the building.
    The payments must be completed by the end of 1987.
    Bond International has also sold several residential
buildings in Hong Kong's mid-levels district for a total of
68.35 mln dlrs, the statement said.
    The flats were among the properties it bought last year
from Hongkong Land Co Ltd <HKLD.HK> for 1.4 billion dlrs.
    Analysts said Bond International is heavily geared as it
has relied on bank borrowings to purchase both the Hongkong
Land properties and the HK-TVB shares.
    Bond International also said in the document that while it
plans to sell an interest in the complex it will hold the
HK-TVB shares as a long-term investment.


.I 10148
.C
interest
.W
PHILIPPINES SEES 1987 GOVERNMENT REVENUE UP 26 PCT.
    MANILA, March 16 - Philippine government revenue is
expected to rise 26 pct to 99.9 billion pesos this year from
79.1 billion in 1986, Finance Secretary Jaime Ongpin said.
    In a report to President Corazon Aquino on his department's
performance during the year ended February 28, Ongpin said at
least 15.9 billion pesos were expected to accrue from new tax
reform measures announced last year.
    He said the goal for official development assistance (ODA)
this year is two billion dlrs, adding that aid donors have
committed ODA inflows of 1.7 billion dlrs in 1987, up 30 pct
from 1.3 billion in 1986.
    Ongpin said steps planned to provide a sound revenue base
included a value added tax (VAT) system due to be introduced in
1988. He gave no other details.
    He said treasury bill maturities, interest rate levels and
the volume of government securities sold to the private sector
have improved significantly. "In particular, short-term prime
interest rates which had gone over 40 pct in 1985, are now down
to less than 10 pct," he said.
    Ongpin said the government's debt-equity scheme, introduced
in August last year, had attracted more than 276 mln dlrs worth
of applications, but selective evaluation had resulted in
approvals of only 61.8 mln dlrs at end-February.
    He said his department aims to accelerate its privatisation
program and the sale of non-performing assets owned by
associates of former President Ferdinand Marcos to achieve a
1987 sales target of four billion pesos which would help
finance land reform.
    Aquino said earlier this month that all the 24 billion
pesos the government hopes to raise from the sale of the failed
companies will be used to finance the land reform plan.
    Ongpin also said the government would pursue efforts to
obtain 500 mln dlrs in concessional funding for the program
from a World Bank-led consultative group of multilateral and
bilateral aid donors.
    The government has said the land reform plan aims to
distribute 9.7 mln hectares of land to poor peasants.


.I 10149
.C
trade
.W
NORWAY'S TRADE DEFICIT WIDENS IN FEBRUARY.
    OSLO, March 16 - Norway's trade deficit widened in February
to 957 mln crowns from 80 mln crowns in January and 492 mln
crowns in February last year, the Central Bureau of Statistics
said.
    Exports dropped to 10.66 billion crowns last month,
compared with 11.11 billion in January and 10.85 billion in
February 1986, it added.
    Crude oil and natural gas exports totalled 4.56 billion
crowns in February, against 5.10 billion in January and 5.36
billion a year ago.


.I 10150
.C
interest
.W
UAE GOVERNMENT PAPER YIELDS UNCHANGED.
    ABU DHABI, March 16 - Yields on certificates of deposit
issued by the United Arab Emirates Central Bank were unchanged
at 6-1/8 pct, the bank said.
    The yield applies to maturities of one, two, three and six
months.


.I 10151
.C
cpi
.W
DUTCH COST OF LIVING FALLS 1.2 PCT IN FEBRUARY.
    THE HAGUE, March 16 - The Dutch cost of living index (base
1980) fell 1.2 pct to 121.5 in the year to mid-February after a
1.3 pct fall in the year to mid-January 1987, the Economics
Ministry said.
    The February index was 0.2 pct up on January.
    Clothing, shoe and vegetable prices rose in February while
prices of coffee, heating oil and most car fuels fell, the
Ministry added.


.I 10153
.C
ipi
.W
SWEDISH INDUSTRIAL PRODUCTION FALLS IN JANUARY.
    STOCKHOLM, March 16 - Sweden's industrial production fell
1.8 pct during January compared with a fall of 0.8 pct the
month before and remains unchanged compared with January 1986,
according to figures from the Central Bureau of Statistics.
    The bureau attributed the fall to a long Christmas break
and particularly cold weather, which lowered production in the
forestry industry.


.I 10154
.C
money-fx;interest;
.W
BUNDESBANK ADDS MONEY MARKET LIQUIDITY.
    FRANKFURT, March 16 - The Bundesbank came into the domestic
money market to add temporary liquidity through federal
government funds as call money rates rose above 4.0 pct,
dealers said.
    They estimated that the bulk of liquidity was added at
about 3.95 pct. Call money fell to 3.90/4.0 pct after the move.
It had been 3.80/90 on Friday.
    The move came as call money extended a rise begun Friday
after the Bundesbank took up some six billion marks owed to it
by other European central banks after currency interventions in
the framework of European Monetary System in January.
    Rates could ease further in trading today but dealers
expect them to rise later in the week as banks begin paying out
funds for tax payments on behalf of clients.
    Some 30 billion marks is likely to leave the market this
month, with the bulk being paid out next week.
    In anticipation of this liquidity drain, banks have stocked
up reserves at the Bundesbank.
    On Thursday, minimum reserve holdings declined to 57.0
billion marks from 60.0 billion on Wednesday but were well
above the 53.2 billion held on Tuesday. Daily average reserve
holdings rose slightly to 54.7 billion marks from 54.5 billion.
    The daily average reserve holdings were above the level of
around 51 billion marks dealers said is needed for the required
daily average for the month.
    With the heavy tax drain in March, banks are likely to
remain cautious about taking more liquidity out of reserves
than is absolutely necessary.
    However, a new securities repurchase pact likely to be
added next week to replace a facility expiring then could
somewhat offset the drain.
    The Bundesbank is expected to allocate more than the 3.4
billion marks which is due to be rolled over, dealers said.


.I 10156
.C
alum
.W
PECHINEY SIGNS LETTERS OF INTENT WITH SOVIET UNION.
    PARIS, March 16 - Pechiney <PUKG.PA> said it signed two
letters of intent with the Soviet Union covering the setting up
of packaging and packaging materials joint ventures.
    It said one proposed venture would produce  aluminium
packaging for food and cosmetics. The other envisaged Pechiney
putting together a consortium of  European partners to set up a
packaging and equipment manufacturing unit in the Soviet Union.
    A Pechiney spokesman said two working groups would prepare
detailed projects over the next three months. He said it was
too soon to estimate the financial value of the two ventures.


.I 10157
.C
crude
.W
MEES SAYS SECOND WEEK MARCH OPEC OUTPUT 14 MLN BPD.
    NICOSIA, March 16 - OPEC produced only about 14 mln bpd of
oil in the second week of March -- 1.8 mln bpd below its
ceiling -- largely because of pipeline problems in Turkey and
Ecuador, the Middle East Economic Survey (MEES) estimated.
    A landslide breached Iraq's one mln bpd pipeline through
Turkey on March 6 for a week, and earthquakes in Ecuador have
shut down its export pipeline for four to five months. Ecuador
has an OPEC quota of 210,000 bpd.
    MEES put Saudi Arabian output at 2.9 mln bpd in the first
week of March and 3.1 mln bpd in the second, in addition to
output from the Neutral Zone between Saudi Arabia and Kuwait.
    MEES said Saudi Arabia was pumping more than 300,000 bpd of
its total production into floating storage.
    Saudi Oil Minister Hisham Nazer told Reuters and the
television news agency Visnews yesterday that Saudi output,
including Neutral Zone production, was around three mln bpd.
    The Cyprus-based newsletter also said authoritative Libyan
oil sources said Libya was producing 850,000 bpd, compared with
its 948,000 bpd quota, and that actual liftings are much lower
than that.
    It said one major Libyan equity producer had partially
stopped lifting its 55,000 bpd equity entitlement for March
because Libya was insisting on official prices, but is still
lifting 40,000 bpd of debt crude at official prices and a
further 25,000 bpd of "purchase crude."
    It said small equity producers, with entitlements of only
2,000 to 3,000 bpd, had also told Tripoli they could not lift
at official prices.
    MEES said Iraq had sent a telex to OPEC and member
countries calling for the formation of a committee to study
what it said were inequalities in marketing potential among
various members.
    The newsletter said the Iraqi letter indicated Baghdad was
having difficulty selling crude at official prices.
    The Iraqi telex pointed out that some member countries
export substantial volumes of oil that are not subject to OPEC
price regulations -- exports of refined products, equity crude
on which the margins are equivalent to covert discounts and
"other forms of hydrocarbons" which are marketed in package deals
with crude oil.


.I 10158
.C
cpi
.W
FINNISH INFLATION FALLS TO 3.5 PCT IN FEBRUARY.
    HELSINKI, March 16 - Year-on year Finnish consumer prices
fell to 3.5 pct in February 1986 from 3.7 pct in January and
4.6 pct in February 1985, the Central Statistical Office said.
    Consumer prices rose 0.3 pct in February after rises of one
pct in January and 0.5 pct in February 1985.
    The consumer price index, base 1981, was 142.7 in February,
142.2 in January and 137.8 in February 1986.


.I 10163
.C
earn
.W
PEARSON CONCENTRATES ON FOUR SECTORS.
    LONDON, March 16 - Pearson Plc <PSON.L> said the recent
sale of its Fairey Engineering companies, in a 51.5 mln stg
management buy-out, was part of its policy of concentrating on
four key sectors.
    In a statement with its 1986 results, the company said its
information and entertainments sector's Financial Times, FT,
newspaper had record sales and profits.
    The FT is subject to a 70 mln stg investment programme,
with the printing and publishing operation moving to a new
plant in the London docklands next year.
    Its other key sectors are merchant banking, oil and china.
    Commenting on its Camco Inc oil service subsidiary, Pearson
said it believes the oil business setback is only temporary.
    The group has been acquiring oil properties in both the
U.S. And Britain which will begin to make a significant impact
on profits in the 1990s.
    Far East operations of fine china subsidiary Royal Doulton
Ltd are being expanded in the wake of record recent sales in
Japan, it added.
    Pearson reported 1986 pre-tax profit of 121.1 mln stg, up
from 109.3 mln in 1985. Turnover fell to 953 mln from 970 mln.


.I 10164
.C
money-supply
.W
****** German February central bank money grows annual 7.5 pct (January, same) - prov. Bundesbank data.
Blah blah blah.

.I 10166
.C
money-supply
.W
GERMAN FEBRUARY CENTRAL BANK MONEY GROWTH STEADY.
    FRANKFURT, March 16 - West German central bank money stock
was growing at an annualized 7.5 pct in February, unchanged
from the 7.5 pct reported in January, provisional data from the
Bundesbank showed.
    The figure was thus outside the three to six pct range set
by the Bundesbank for 1987.
    In absolute terms, the measure rose to 223.2 billion marks
in February from 221.8 billion in the prior month.
    The data showed that the stock grew at an annualized 8.6
pct over the six months to February, slower than the 9.4 pct
rise in the same period to January.
    Of the two components comprising central bank money stock,
cash in circulation rose to 111.7 billion marks in February
from 110.9 billion in January, the Bundesbank data showed.
    This gave an annualized 8.3 pct rise over the six months to
February, down from a 10.2 pct increase over the six months to
January.
    Minimum reserve requirements on domestic liabilities grew
to 111.5 billion marks in February from 110.9 billion in
January.
    This yielded an annualized 8.8 pct rise over the six month
to February, up slightly from an 8.6 pct increase over the same
period to January.


.I 10167
.C
retail
.W
******UK FEB RETAIL SALES RISE PROVISIONAL 2.2 PCT (JAN FALL 2.2 PCT) - OFFICIAL.
Blah blah blah.

.I 10168
.C
gold
.W
GERMAN BANK SEES HIGHER GOLD PRICE FOR 1987.
    HAMBURG, March 16 - Gold is expected to continue its rise
this year due to renewed inflationary pressures, especially in
the U.S., Hamburg-based Vereins- und Westbank AG said.
    It said in a statement the stabilisation of crude oil
prices and the Organisation of Petroleum Exporting Countries'
efforts to achieve further firming of the price led to growing
inflationary pressures in the U.S., The world's biggest crude
oil producer.
    Money supplies in the U.S., Japan and West Germany exceed
the central banks' limits and real growth of their gross
national products, it said.
    Use of physical gold should rise this year due to increased
industrial demand and higher expected coin production, the bank
said.
    Speculative demand, which influences the gold price on
futures markets, has also risen. These factors and South
Africa's unstable political situation, which may lead to a
temporary reduction in gold supplies from that country,
underline the firmer sentiment, it said.
    However, Australia's output is estimated to rise to 90
tonnes this year from 73.5 tonnes in 1986.


.I 10169
.C
retail
.W
U.K. RETAIL SALES RISE 2.2 PCT IN FEBRUARY.
    LONDON, March 16 - The volume of U.K. Retail sales rose a
provisional, seasonally adjusted 2.2 pct in February after
falling a final 2.2 pct in January, figures released by the
Department of Trade and Industry show.
    The February sales index, base 1980, was put at a
preliminary 125.0 after a final 122.3 in January.
    In the three months from December to February, the level of
sales was little changed over the previous three months but was
nearly six pct higher than the same year ago period.
    On a non-seasonally adjusted value basis, retail sales in
February were a provisional 9.0 pct higher than a year earlier.
    The Department noted the latest figures were similar to the
average in the fourth quarter last year but well above the
January index, which was depressed by the effects of severe
weather.
    The February trading period comprised the four weeks
February 1 to 28. Final February retail sales figures will be
published on April 6.


.I 10170
.C
earn
.W
TRANSPORT DEVELOPMENT GROUP PLC <TDGL.L> 1986 YEAR.
    LONDON, March 16 - Shr 17.15p vs 12.37p
    Final dividend 5.5p, making 7.5p vs 6.2p
    Pre-tax profit 39.4 mln stg vs 29.7 mln.
    Turnover 543.2 mln stg vs 481.5 mln
    Operating profit 48.2 mln stg vs 38.2 mln
    Net interest 8.9 mln vs 8.6 mln
    Tax 14.3 mln vs 11.2 mln
    Profit after tax 25.1 mln vs 18.4 mln
    Minority interest 300,000 vs 615,000
    Net tangible assets per ordinary shr 111.3p vs 101.6p


.I 10171
.C
cocoa
.W
COCOA LATEST FOCUS FOR COMMODITY PACT NEGOTIATORS.
    By Douglas Learmond, Reuters
    LONDON, March 16 - The credibility of government efforts to
stabilise fluctuating commodity prices will again be put to the
test over the next two weeks as countries try to agree on how a
buffer stock should operate in the cocoa market, government
delegates and trade experts said.
    Only two weeks ago, world coffee prices slumped when
International Coffee Organization members failed to agree on
how coffee export quotas should be calculated. This week, many
of the same experts gather in the same building here to try to
agree on how the cocoa pact reached last summer should work.
    The still unresolved legal wrangle surrounding the
International Tin Council (ITC), which had buffer stock losses
running into hundreds of millions of sterling, is also casting
a shadow over commodity negotiations.
    The ITC's failure has restricted negotiators' ability to
compromise as governments do not want to be involved in pacts
with built-in flaws or unlimited liability, but want clear
lines drawn between aid and trade.
    A more hopeful sign of cooperation was agreement on basic
elements of a new International Natural Rubber Agreement in
Geneva at the weekend.
    Some importing countries insist the International Cocoa
Organization (ICCO) buffer stock rules must not be muddied with
quota type subclauses which might dictate the type of cocoa to
be bought. One consumer country delegate said this would
"distort, not support" the market.
    Trade and industry sources blame uncertainty about the ICCO
for destabilising the market as the recent collapse in coffee
prices has made traders acutely aware that commodity pacts can
founder. On Friday this uncertainty helped push London cocoa
futures down to eight month lows. The strength of sterling has
also contributed to the recent slip in prices.
    The ICCO daily and average prices on Friday fell below the
"must buy" level of 1,600 SDRs a tonne designated in the pact,
which came into force at the last ICCO session in January but
without rules for the operation of the buffer stock.
    Consumers and producers could not agree on how it should
operate and what discretion it should be given. The agreement
limits it to trading physical cocoa and expressly says it
cannot operate on futures markets.
    A cash balance of some 250 mln dlrs and a stock of almost
100,000 tonnes of cocoa, enough to mount large buying or
selling operations, were carried forward from the previous
agreement.
    Members finance the stock through a 45 dlrs a tonne levy on
all cocoa they trade. It has an upper limit of 250,000 tonnes.
    The key arguments being faced by the ICCO working group on
buffer stock rules which is meeting today and tomorrow will be
over non-member cocoa and differentials the buffer stock should
pay when trading different types of cocoa. Another working
group is scheduled to meet Wednesday to discuss administrative
matters, and the full council meets on Thursday.
    Producers have so far maintained that buffer stock funds
should not help mop up surplus cocoa produced in non-member
countries such as Malaysia.
    Consumers say when this cocoa is the cheapest the buffer
stock should buy it rather than compete with chocolate
manufacturers for premium-priced high quality cocoas.
    The argument over buying non-member cocoa is closely linked
to the one over differentials for different qualities.
    European industry and trade advisers have suggested as a
compromise that the buffer stock have a maximum share that can
represent non-member cocoa and that it use the London futures
market's existing differentials for different qualities.
    Currently, good West African cocoa is tendered at par onto
the London market.
    Discounts, which are currently under review, range up to 50
stg a tonne for Brazilian and Malaysian cocoa.
    Consumer delegates said the same arguments in reverse would
operate when prices are high - the buffer stock should sell the
highest priced cocoa in most demand, forcing all prices lower.
    The January talks were slowed by a split inside the
European Community, a key ICCO consumer group, with France
siding with producers. EC representatives met in closed session
in Brussels on Friday in an attempt to reach a common ground
and, a diplomatic source said, narrowed the range of positions
among the 12 nations.
    The source said the EC will be looking for signs of
flexibility on the part of producers in the next few days and
will be able to respond if they are there.
    One ICCO delegate describing the producer/consumer split
said consumer proposals mean buying more cocoa for less and
backs the concept of the pact which is "meant to support the
market where trade buying is not."
    In contrast, he said, producers seem to want to sell their
cocoa to the buffer stock rather than consumers.
    Other, more technical, issues still outstanding include
whether the buffer stock should buy at a single announced
"posted price" as in the previous pact or by announcing it is
buying then accepting offers.
    In either case, delegates said, it is accepted that
producers must be given a clear opportunity to make offers of
cocoa for forward shipment directly to the buffer stock in a
way that is competitive with spot offers made by dealers.


.I 10173
.C
cpi
.W
YUGOSLAV FEBRUARY INFLATION RISES 7.2 PCT.
    BELGRADE, March 16 - Yugoslav retail prices in February
rose 7.2 pct from January to stand 91.6 pct higher than in
February 1986, the Federal Statistics Office said.
    In January retail prices rose 6.6 pct from December to
stand 90.4 pct higher than in January 1986.
    The cost of living, an index that includes services and
utilities as well as retail prices, was up 7.3 pct in February
from January and stood 93.6 pct higher than in February 1986.
    In January the cost of living increased by 6.4 pct from
December and stood 91.8 pct higher than in January 1986.


.I 10177
.C
earn
.W
MAI PLC <MLLL.L> SIX MONTHS TO DECEMBER.
    LONDON, March 16-
    Shr 25.7p vs 21.5p
    Div 6p vs 4p
    Pretax profit 24.13 mln stg vs 16.40 mln
    Net after tax 15.08 mln vs 10.52
    Extraordinary credit 8.71 mln stg vs nil
    Turnover 140.8 mln vs 96.55
    Note - The extraordinary item comprises profit less losses
on the sale of certain subsidiaries less related tax and
minority interests.
    Pretax profit comprises -
    Securities and money broking 15.44 mln stg vs 10.75 mln
    Personal financial services 3.6 mln vs 735,000 stg
    Media 3.74 mln vs 3.16 mln
    Market reserch 912,000 stg vs 732,000
    Net interest 438,000 vs 1.03 mln


.I 10179
.C
grain;rice;
.W
MADAGASCAR RICE CROP ESTIMATED HIGHER IN 1987.
    ANTANANARIVO, March 16 - Madagascar's vital rice crop is
estimated at 2,286,000 tonnes of paddy this year, up from
2,138,000 in 1986, the Ministry of Agriculture said.
    The Trade Ministry said rice imports quadrupled in local
currency value during the first nine months of last year as the
government established a buffer stock of the country's staple
food.
    Rice imports increased to 82.4 billion Malagasy francs
during the first nine months of last year from 20 billion in
the same period of 1985, the ministry said, without disclosing
the tonnages involved.


.I 10181
.C
crude
.W
ECUADOR SAYS IT WILL PAY DEBT WHEN IT CAN.
    QUITO, March 16 - President Leon Febres Cordero said
Ecuador would honour its debt when it had the capacity to make
payments, but said foreign banks had calculated oil would have
to be 25 dlrs a barrel for Ecuador to meet its commitments.
    Ecuador said on Friday that last week's earthquake was
forcing it to reaffirm an earlier decision -- based on the
slide in world oil prices -- to suspend debt payments to
private foreign banks, which hold two-thirds of its 8.16
billion dlr foreign debt.
    "All legitimate debt is a commitment of honour," the
president said during a visit to the quake zone. "A government
as a sovereign entity has dignity and prestige to maintain."
    Private foreign banks and the World Bank had calculated oil
would have to be at least 25 dlrs a barrel for Quito to be able
to meet its commitments, Febres Cordero said.
    He added that Ecuadorean crude was now selling for 15 to 17
dlrs a barrel after having been sold for many months at 12 dlrs
a barrel and as low as seven dlrs before that.
    Meanwhile, Ecuador announced an austerity program and a
price freeze on key consumer goods as a result of the
earthquake, which killed at least 300 people.
    Presidency Minister Patricio Quevedo said the budget would
be cut by five to 10 pct, government hiring would be frozen and
salaries of top officials, including the president and cabinet,
would be reduced.
    He also said a price freeze would be imposed on 20 basic
consumer items, mainly food staples, while the price of
gasoline would rise by between 69 and 80 pct and bus fares
would rise by 20 pct. Gasoline supplies would also be limited.


.I 10182
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST REVISED UPWARDS.
    LONDON, March 16 - The Bank of England said it had revised
its estimate of the shortage in the money market today up to
1.15 billion stg before taking account of its early operations.
    Earlier, the bank forecast the deficit at 1.05 billion stg
and gave 90 mln stg assistance at an early round of bill
offers.


.I 10183
.C
crude
.W
PARIBAS SEEKING TO ADJUST ECUADOR OIL FACILITY.
    NEW YORK, March 16 - Banque Paribas, which arranged a 220
mln dlr loan for Ecuador last year to pre-finance oil exports,
wants to adjust the terms of the facility to help the country
recover from a devastating earthquake, bankers said.
    But the French bank's plan, which would effectively
postpone repayment of about 30 mln dlrs of the loan for several
months, is running into stiff resistance from many of the 52
members of the loan syndicate.
    The pipeline that carries all Ecuador's oil exports was
ruptured in the March 5 tremor and will take some five months
to repair at a cost of about 150 mln dlrs to repair.
    President Leon Febres Cordero on Friday estimated total
damages caused by the quake at one billion dlrs and said that
Ecuador as a result would maintain January's suspension of
interest payments on its foreign commercial bank debt.
    Payments were halted in January because of the drop in the
price of oil, which accounts for nearly two-thirds of Ecuador's
export earnings and 60 pct of government revenue.
    Although sympathetic to Ecuador's plight, many banks in the
Paribas facility feel that emergency financial relief is a job
for international financial organizations and not for
commercial banks, bankers said.
    The 18-month oil-financing facility, which was signed last
October 28, is one of the few purely voluntary credits for a
Latin American nation since the region's debt crisis erupted in
August 1982.
    Because it was a voluntary deal, many bankers feel strongly
that the orginal terms must be adhered to. Otherwise, they
fear, the gradual re-establishment of normal market conditions
for Latin borrowers will be set back.
    "There's a lot of reluctance by the other banks. They feel
it's a different facility, and so any kind of suggestion of a
restructuring would look bad," one banker commented.


.I 10184
.C
money-fx;gnp;yen;
.W
BANK OF JAPAN SATISFIED WITH YEN AT CURRENT RANGE.
    TOKYO, March 16 - The Bank of Japan is satisfied with the
yen around its current range, a senior central bank official
told reporters.
    He said the pledge by major industrial nations in Paris
last month to cooperate to hold exchange rates around current
ranges applied in both directions, a dollar fall or a dollar
rise.
    Unilateral intervention itself cannot ensure currency
stability, but it can be useful when coordinated with other
policies and with other central banks, he said.
    The Bank of Japan is rather confident currency stability
will continue for some time, the senior bank official said, but
declined to be more specific.
    Finance Minister Kiichi Miyazawa told parliament on Friday
the current dollar/yen exchange rate is not necessarily
satisfactory for the Japanese economy.
    Asked what factors might destabilize the markets, the
official cited a lessening of market fear about intervention, a
completely unexpected change in the economy of Japan, the U.S.
Or West Germany, or resumption of comments by government
officials seeking to talk the dollar up or down.
    The senior bank official said he expects Japan's gross
national product (GNP) to grow three pct or slightly more in
the fiscal year beginning in April. That would be little
changed from the performance expected this year.
    Domestic demand may grow nearly four pct in 1987/88, but
the external sector will have a negative impact on GNP of
nearly one percentage point, he said.
    He said there was virtually no room for further monetary
policy action to boost the economy. The economy's performance
in the future very much depends on fiscal policy, he added.
    The central bank's monetary policy has already done its
part in stimulating the economy, the senior bank official said.
The Bank of Japan has cut its discount rate five times over the
last year and a half.
    Although the central bank does not see any imminent risk of
inflation, there could be some problems in the future, he said.
"We are sitting on a barrel of powder, but fortunately it may
still be wet," he added.
    Liquidity among private households and especially the
corporate sector has increased substantially, he said.
    The liquidity is the reason for the recent boom of stock
exchange prices, the bank official said. This inflow of funds
into the stock exchange, occurring also in other countries, may
continue, he said.


.I 10185
.C
acq
.W
BANK OF CHINA TAKES STAKE IN BAII HOLDINGS.
    LONDON, March 16 - Bank of China has taken a stake in
Luxembourg-based finance company BAII Holdings SA, a spokesman
for BAII said.
    The stake was between three and five pct but no further
details of the deal, which was announced simultaneously in
Paris, London and Hong Kong, were immediately available.
    BAII, which is 50 pct Arab owned, is looking to expand its
activities in the Far East and recently established a
wholly-owned merchant banking subsidiary in Hong Kong, the
spokesman said.
    The group had earnings of 15.4 mln dlrs in 1985.


.I 10186
.C
crude
.W
SAUDI OIL MINISTER SEES NO NEED TO ALTER PACT.
    By Philip Shehadi, Reuters
    RIYADH, March 16 - Saudi Arabian Oil Minister Hisham Nazer
said OPEC's December agreement to stabilize oil prices at 18
dlrs a barrel was being implemented satisfactorily and there
was no immediate need to change it.
    Nazer, in an interview with Reuters and the television news
agency Visnews, said Saudi Arabia was producing around three
mln barrels per day (bpd) of crude oil, well below its OPEC
quota.
    Saudi Arabia, the world's largest oil exporter, will
continue to restrain production as long as other OPEC members
adhere to the pact, Nazer said.
    The 13-nation OPEC agreed in December to cut its production
ceiling by 7.25 pct to 15.8 mln bpd and abide by fixed prices
averaging 18 dlrs a barrel from February 1.
    Nazer, in his first interview since succeeding Ahmed Zaki
Yamani last October, said: "I do not foresee any need for new
measures before the 25th of June when our (next OPEC) meeting
will take place as scheduled."
    Nazer said OPEC was producing below 15.8 mln bpd and all
members were abiding by its agreements.
    "We've heard news every now and then of violations but they
were not at all verified," he said.
    OPEC production curbs have boosted world oil prices from a
13-year low of around eight dlrs a barrel last August to near
18 dlrs after announcement of the December pact.
    Spot market prices slipped some two dlrs in February but
have firmed in the past two weeks to near OPEC levels as
traders gained confidence in OPEC price and output discipline.
    Nazer said Saudi Arabia would continue to produce below its
4.133 mln bpd quota if necessary to defend the 18 dlr price.
    "As long as all the OPEC members adhere to the program as
devised in December, Saudi Arabia will continue to adhere to
the agreement," he said.
    Current production of three mln bpd includes oil from the
Neutral Zone shared with Kuwait, but not sales from floating
storage, Nazer said.
    King Fahd of Saudi Arabia, in an interview with Reuters and
Visnews on March 11, said the kingdom wanted oil price
stability and called on non-OPEC producers to avoid harmful
competition with OPEC.
    "Saudi Arabia doesn't decide prices by itself but certainly
desires price stability," he said.
    Nazer said the output level did not mean the kingdom had
returned to a role of "swing producer" within OPEC.
    Saudi Arabia allowed its output to sink as low as two mln
bpd in August 1985 to compensate for slack demand and
over-production by some OPEC states.
    "Saudi Arabia is not playing that role. It is being played
by OPEC membership as a whole because the reduction in the 15.8
mln bpd share of OPEC in the market is being shared by other
members of OPEC," Nazer said.
    Nazer said OPEC estimated demand for its oil during third
quarter this year would be around 16.6 mln bpd.
    But he said if circumstances changed "I am sure then the
OPEC members will consult with each other and take the
necessary measures."
    Oil analysts say the OPEC pact could come under strain when
demand for petroleum products generally falls in the northern
hemisphere spring and summer.
    Nazer said he was satisfied with the extent of cooperation
from non-OPEC producers. Norway, Egypt and the Soviet Union
agreed to help OPEC by restraining production or exports after
he visited them on OPEC's behalf earlier this year.
    "We did not ask any country to do anything. These were
programmes they thought were necessary to stabilise market
conditions and to help themselves attain better pricing
conditions," Nazer said.
    He said it was up to countries that declined to cooperate
-- such as Britain -- to come up with their own proposals if
they saw fit.

.I 10187
.C
trade
.W
TURKISH TRADE DEFICIT WIDENS IN 1986.
    ANKARA, March 16 - Turkey's trade deficit rose to 3.65
billion dlrs in 1986 from 3.39 billion in 1985 following
increased imports from Western countries, figures from the
State Statistics Institute show.
    Exports were down 6.3 pct at 7.45 billion dlrs, compared
with 7.95 billion in 1985, while imports were down 2.1 pct at
11.10 billion dlrs from 11.34 billion.
    Total trade with Mid-East Gulf states fell some 40 pct due
to lower oil prices, with imports at 1.55 billion dlrs,
compared with 2.74 billion, and exports at 1.65 billion after
2.72 billion.
    Exports to Organisation for Economic Cooperation and
Development countries rose to 4.29 billion dlrs from 4.11
billion in 1985, while imports were 4.56 billion after 3.55
billion.
    Turkey's trade deficit in December narrowed to 216 mln dlrs
from 340 mln in November, and compared with 277 mln in December
1985.
    


.I 10189
.C
earn
.W
ALUSUISSE SHARES FALL AFTER CAPITAL CUT NEWS.
    ZURICH, March 16 - Bearer shares of Schweizerische
Aluminium AG <ALUZ.Z> (Alusuisse) fell sharply as trading
resumed after a one-day suspension on Friday, when the firm
disclosed plans for a capital cut.
    The bearers, held mainly by foreign investors, dropped 30
Swiss francs to 460. But volume was not particularly heavy.
Registered shares were less affected, slipping five to 165. The
participation certificates fell to 43 francs from 45.50.
    Alusuisse made a net loss of 688 mln francs, after a
restated 756 mln loss in 1985, and set a 50 pct capital cut.
The company said it could break even this year.


.I 10190
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 30 MLN STG HELP.
    LONDON, March 16 - The Bank of England said it provided the
money market with a further 30 mln stg assistance.
    This brings the Bank's total help so far today to 120 mln
stg and compares with its upward revised estimate that the
system would face a shortage of some 1.15 billon stg.
    The central bank bought bills for resale to the market in
equal amounts on April 1, 2 and 3 at an interest rate of
10-7/16 pct.


.I 10191
.C
trade
.W
EGYPT, SOVIETS TO RENEGOTIATE ARMS DEBT TERMS.
    CAIRO, March 16 - Egypt and the Soviet Union are expected
to sign an agreement in Moscow next week settling Cairo's three
billion dlr military debt, Egyptian officials said.
    One official, who asked to remain anonymous, told Reuters a
draft agreement would reduce to zero from two pct future
interest payable on the 10 year-old debt, and set a 25 year
repayment term.
    Talks are due to begin in Moscow on Wednesday.
    Economy Minister Youssri Mustapha, who leaves for Moscow on
Tuesday, met President Hosni Mubarak and Egyptian ambassador to
Moscow Salah Bassiouni to discuss the issue.
    One official said Egypt would propose a new exchange rate
for trade with the Soviet Union. Current commerce is based on a
rate set in the 1960s of 0.38 Egyptian pounds to the dollar
which Moscow sees as unreasonable. The fluctuating official
rate is about 1.36 pounds to the dollar.
    The officials said part of the debt would be paid in
exports of goods such as textiles, leather and furniture.
    Egypt wants to settle the debt problem partly to open the
door for new cooperation, mainly in modernising Soviet-built
steel, aluminium and fertiliser plants under a five-year
development plan ending June 30 1992.
    Egypt, which already imports Soviet coal, wood, newsprint
and glass, also wanted a debt deal to allow purchases of
currently blocked spare parts for its ageing Soviet military
hardware, the officials said.
    An estimated 65 pct of Egypt's arsenal is still made up of
Soviet-supplied equipment, one official said.
    Cairo stopped repaying Moscow for arms purchases in 1977
when then-president Anwar Sadat broke with its long-standing
ally and turned to the U.S..


.I 10192
.C
money-fx;reserves;
.W
PERU BEGINS FOREIGN EXCHANGE RATIONING.
    LIMA, March 16 - Peru will put into effect today a foreign
exchange rationing system for imports designed to stop a slide
in the country's international reserves, a government decree in
the Official Gazette said.
    Under the system, importers will be required to present a
bill from the foreign seller of goods and apply for a license
for foreign exchange. The central bank will have 10 days to
decide whether to issue the required foreign exchange.
    Net international reserves now total about 800 mln dlrs
compared to 1.54 billion dlrs a year ago.
    The system will be effective until the end of 1988.
    A ceiling for foreign exchange availability will be set by
a council with members from the central bank, the economy
ministry and the planning and foreign trade institutes. The
central bank will issue licenses to procure foreign exchange in
accordance with guidelines set by the council.
    Peru's reserves fell sharply due to a drop in the trade
surplus to about five mln dlrs in 1986 from 1.1 billion in
1985, according to preliminary central bank estimates.
   Total exports dropped to 2.50 billion dlrs last year against
2.97 billion in 1985.


.I 10193
.C
money-fx;trade;
.W
TAIWAN SAYS U.S. WANTS TAIWAN DOLLAR TO APPRECIATE.
    TAIPEI, March 16 - The United States wants Taiwan's
currency to appreciate faster to reduce Taiwan's trade surplus
with the U.S., A senior trade official said.
    Board of Foreign Trade director Vincent Siew told reporters
on Saturday U.S. Officials told him in Washington last week
that unless Taiwan allowed its dollar to rise faster it would
face retaliation.
    Siew returned from Washington on Friday after the U.S
responded to Taiwan's request to increase its textile export
quotas by promising further talks in May. Taiwan's surplus with
the U.S. Hit a record 13.6 billion U.S. Dlrs in 1986.
    Washington signed a three-year accord with Taipei last year
limiting textile export growth to 0.5 pct a year.
    Siew said the Taiwan dollar had risen by about 15 pct
against the U.S. Dollar since September 1985.
    It surged last week amid indications Washington was seeking
a major rise in its value. It rose four cents against the U.S.
Dollar on Saturday to close at 34.59.
    Western trade sources told Reuters Taiwan and the U.S. Have
been holding talks on the currency issue but added it is not
clear how far Washington wants to see the Taiwan dollar rise.


.I 10194
.C
crude
.W
SAUDIS DROP CONDITION FOR OIL SALE TO BRAZIL.
    RIO DE JANEIRO, March 16 - Saudi Arabia has dropped its
condition that Brazil secure international bank guarantees
before Saudia Arabia would ship it oil, state-oil company
Petrobras said in a statement.
    Petrobras said the Saudis will accept Banco do Brasil
credit guarantees.
    Petrobras cancelled a 40 mln dlr crude oil purchase from
the Saudis yesterday after they refused to accept a letter of
credit from the official Bank of Brazil. The Saudis had
demanded that Brazil get credit guarantees from leading
international banks.
    Petrobras said the Saudis had been advised that if they did
not change their mind by Monday, Petrobras would negotiate the
purchase of oil with other producers.
    The Petrobras statement said the shipment of 2.2 mln
barrels will be made by the Saudis on March 24 as scheduled.
    The shipment was part of a contract signed in February for
the Saudis to supply Brazil with 125,000 barrels per day until
June.


.I 10196
.C
earn
.W
BSI RAISING 50 MLN SWISS FRANCS VIA RIGHTS ISSUE.
    ZURICH, March 16 - Banca della Svizzera Italiana <BISZ.Z>
said it planned a one-for-12 rights issue at 300 pct of nominal
value to raise about 50 mln francs new capital.
    The rights issue would have a theoretical value to
shareholders of 140 Swiss francs per bearer share and 45 per
registered share.
    BSI was also seeking shareholder authorization for 200,000
new participation certificates of a nominal value of 100 francs
without rights for shareholders, to back future convertible or
warrant bonds or for other purposes. Existing 500-franc "B"
tranche certificates would be split five-for-one.
    The split would improve the marketability of the existing
certificates, chief executive Giorgio Ghiringhelli told a news
conference.
    The new bearer shares would be priced at 1,500 francs,
compared with a closing price last Friday of 3,325 on the
Zurich Stock Exchange, while the registered shares would be
issued at 300 francs against a market price of 900.


.I 10197
.C
acq
.W
******PEPSICO OFFERS TO ACQUIRE CALNY INC FOR 11.50 DLRS A SHARE.
Blah blah blah.

.I 10198
.C
veg-oil;trade;
.W
U.K. AND GERMANY LEAD ATTACK ON EC FARM REFORMS.
    By Paul Mylrea, Reuters
    BRUSSELS, March 16 - Britain and West Germany told their
European Community partners they would strongly oppose major
elements of proposals to rid the EC of its farm surpluses.
    At a meeting of EC foreign ministers, Britain called for a
full debate on a proposed tax on edible oils and fats that has
already angered EC consumer groups and unleashed Washington-led
protests from exporters to the EC, diplomats said.
    West Germany, also opposed to the oils and fats tax, will
advise the meeting formally later today it cannot countenance
other proposals that could hit German farmers, they added.
    They said West Germany's objections were put in a letter
this weekend from Chancellor Helmut Kohl to Jacques Delors, the
president of the EC's Executive Commission which had put
forward the proposals last month in a bid to avoid a new EC
cash crisis.
    Kohl reiterated German objections to proposed cereals
production curbs but reserved his harshest criticism for a
proposed dismantling of Monetary Compensatory Amounts (MCAs) -
a system of cross-border subsidies and taxes which level out
foreign exchange fluctuations for farm exports.
    Kohl made clear the dismantling would mainly hit German
farmers who, without MCAs, would find it much more difficult to
export to weaker currency states, which means virtually all
other 11 EC states, diplomats said.
    Britain initiated the discussion on the proposal to impose
a hefty tax on domestic and imported oils and fats because it
could seriously damage EC trade relations.
    The diplomats said the United States had been the most
outspoken among foreign critics of the proposal, describing it
as a breach of the EC's obligations under the world trade body
GATT.
    But protests had also come from other exporters to the EC,
such as Senegal, Malaysia, Indonesia, Brazil, Argentina,
Iceland and Norway, they added.
    Britain has often lined up against West Germany on the farm
reform issue in the past but is keen to avoid measures that
could spark a damaging trade war with the U.S.
    Foreign ministers were unlikely to take a decision on
either the oils and fats tax or the MCA proposals today,
diplomats said. But their discussion should make clear that
neither has a chance of surviving when it comes up for
substantive consideration by EC farm ministers later this
month, they added.


.I 10199
.C
acq
.W
HARPER AND ROW <HPR> TO MULL OPTIONS AFTER BIDS.
    NEW YORK, March 16 - Harper and Row Publishers Inc said its
board of directors decided to take no action on two takeover
bids that the company has received. Instead, it appointed a
committee of independent directors to study strategic
alternatives for the 170-year-old firm.
    The alternatives include continuation of the company's
existing business plans, possible business combinations, sales
of stock, restructuring and the sale of all or part of the
company.
    Kidder Peabody and Co Inc has been retained to advise on
the alternatives, Harper and Row added.
    Private investor Theodore Cross last week offered 34 dlrs a
share for Harper and Row, prompting a rival bid of 50 dlrs a
share from another publishing firm, Harcourt Brace Jovanovich
Inc <HBJ>.
    After carefully considering the two offers at a meeting on
Friday, the Harpers and Row board decided not to act on them.
    The directors unanimously expressed their strong desire to
preserve the company's independence and take advantage of its
"considerable future prospects," according to director Winthrop
Knowlton, former chief executive and now chairman of the newly
established independent committee.
    "However, given the significant current interest in the
company, we also feel that we should carefully review all the
options available. The committee will consider all the
pertinent facts and alternatives... We intend to make a careful
and informed decision but will proceed expeditiously to a
conclusion," Knowlton said.
    Pending its deliberations, Harper and Row's board has
postponed indefinitely a special meeting of stockholders that
had been scheduled for April 2 to discuss a proposal to
recapitalize the company's stock in order to create two classes
of shares with different votinmg rights.


.I 10200
.C
acq
.W
FAILING WASHINGTON STATE S/L IS ACQUIRED.
    WASHINGTON, March 16 - The Federal Home Loan Bank Board
(FHLBB) announced the acquisition of Home Savings and Loan
Association in Seattle, Washington, by InterWest Savings Bank
of Oak Harbour, Washington.
    The FHLBB said Home Savings was the 12th troubled savings
institution requiring federal action this year.
    It said Home Savings had assets of 150.6 mln dlrs in assets
and InterWest had assets of 342.9 mln dlrs.


.I 10201
.C
trade
.W
BALDRIGE WARNS OF WORLD TRADE WAR DANGER.
    WASHINGTON, March 16 - U.S. Commerce Secretary Malcolm
Baldrige predicted Congress will pass a reasonable trade bill
this year and said tough protectionist legislation could prompt
a trade war.
    "The mood of the Congress right now is as tough on trade as
I've ever seen it in six years in Washington," Baldrige said in
a weekend television interview.
    "I think we'll still be able to get a reasonable trade bill
out in spite of that because the whole Congress is trying to
work together with the administration, but there is a hardening
trade attitude," he said.
    President Reagan opposes protectionist legislation but
agreed to support a trade bill when it became apparent that
opposition Democrats would pass such legislation.
    However, Baldrige warned measures that would penalize
trading partners such as Japan, South Korea and Taiwan for
failing to cut their trade surpluses with the U.S. could lead
to retaliation and he said he would urge Reagan to veto any
such bill.
    When asked if there is a rising danger of a worldwide trade
war, Baldrige said: "Yes, I don't think there's any question
about that."


.I 10203
.C
dlr;money-fx;interest;
.W
LEADING INDUSTRIAL NATIONS TO MEET IN APRIL.
    By Peter Torday
    WASHINGTON, March 16 - Leading industrial nations will meet
again next month to review their accord on currency stability,
but U.S. Officials said financial markets are convinced for now
the countries will live up to commitments to speed up economic
growth.
    The narrow currency movements of recent weeks strongly
suggests the six leading industrial countries have tamed the
normally unruly financial markets and next month's talks seem
likely to build on that stability.
    A Reagan administration official said the Paris agreement
last month was the main reason markets were calm.
    But he said in an interview that financial markets also
understood, "That all six countries concluded that the measures
to be taken over a period of time in the future should foster
stability of exchange rates around current levels. That is in
fact what has happened since Paris."
    Monetary analysts said stability has been helped in part by
the decision of industrial nations to bury the hatchet and
cease to quarrel over short-term policy objectives.
    Instead they have focused on medium-term policy goals, but
left room to adjust their agreements with periodic meetings.
    The official refused to comment, however, on whether the
agreement included a secret pact to consider further
coordinated interest rate cuts -- a measure industrial nations
have taken jointly several times in the past year.
    On February 22, the United States, Japan, West Germany,
France, Britain and Canada agreed that major currencies were
within ranges broadly reflecting underlying economic
conditions, given commitments by Washington to cut its budget
deficit and by Toyko and Bonn to boost economic growth.
    The shake-up would strengthen the U.S. Position in future
international talks.
    "I think these changes will strengthen the President's hand
politically and the stronger he is politically the better off
we are with the Congress and the better off we are in
international fora," said the official, an Administration
economic policymaker. "So it would be beneficial to the
continued conduct of our initiatives."
    But the official also said the Administration would resist
calls for a tax increase to cut the budget deficit -- a target
Europeans say is crucial to help curb economic instability.
    Currency analysts believe the Paris agreement set secret 
short-term target ranges for their currencies with a specific
agreement to defend those bands with intervention.
    According to market sources, the ranges agreed were 1.60 to
1.90 marks to the dollar, and 140 to 155 yen to the dollar.
    There is no official confirmation that specific bands  were
set, although the agreement used the term "ranges", for the first
time in an international economic agreement.
    The Paris accord stated the six would cooperate closely to
foster currency stability around current levels.
    Last week, dealers said the Federal Reserve intervened to
stop the dollar rising against the mark, which had breached
1.86 to the dollar. British authorities are also understood to
have intervened to curb sterling's strength.
    International monetary sources say finance ministers and
central bankers, who will review market performance and their
own economic prospects, will reassemble again in Washington
just before the April 9 policymaking meeting of the
International Monetary Fund.
    The sources said Italy, which refused to join the Paris
pact, was invited back by Treasury Secretary James Baker.
    Since Paris, there are signs West German growth is slowing,
while U.S. Officials said they were giving Japan until April to
show that an economic stimulus package was in the offing.
    Signs of concern about German prospects emerged recently
when Bundesbank (central bank) president Karl Otto Poehl told
bankers he would consider cutting West German interest rates if
the Fed was ready to follow suit.
    A Reagan Administration official said this would show there
had been some change in approach on the part of the central
bank in Germany.
    But he declined to comment on the prospects for action by
the Fed and the Bundesbank.
    "If there is such a provision it is private and if I talked
about it, it would no longer be private," said the official, who
asked not to be identified.
    Public comments by Fed officials suggest the central bank
is keeping credit conditions broadly unchanged, but if the
major economies continue to show sluggish growth and the U.S.
Trade deficit remains stubbornly high, further coordinated
action could be on the April agenda.


.I 10204
.C
acq
.W
CALNY <CLNY> GETS BID FROM PEPSICO <PEP>.
    SAN MATEO, Calif., March 16 - Calny Inc said it has
received an offer to be acquired by PepsiCo Inc, which already
owns 9.9 pct of Calny stock, for 11.50 dlrs per share, subject
to approval by PepsiCo and Calny boards and Calny shareholders.
    The company said its board intendsd to schedule a meeting
in the near future to review the proposal and it has asked
<Oppenheimer and Co Inc> to assist it in evaluating the offer
and advise Calny on its alternatives.
    Calny is the largest franchisee of PepsiCo's Taco Bell
restaurants, operating 143 in California, Oregon, Texas and
Washington as well as 15 La Petite Boulangerie bakeries in
Seattle.
    Calny earned 1,192,000 dlrs on sales of 56.2 mln dlrs for
the nine months ended November Four.
    On December Four, Calny rejected as inadequate an investor
group led by former president and chairman Robert A. Larive's
second offer to acquire it because the bid was inadeuqate and
subject to too many contingencies.  The group offered 11.50
dlrs and one dlr of 10 pct preferred stock per Calny share.


.I 10205
.C
palm-oil;veg-oil;ship;
.W
INDONESIA PLANS TO BUILD PALM OIL TERMINAL.
    JAKARTA, March 16 - Indonesia will build a crude palm oil
terminal at a new port on Batam island, south of Singapore,
Research and Technology Minister Yusuf Habibie said.
    The terminal will be able to handle 2.1 mln tonnes of crude
palm oil from new plantations in northern Sumatra and western
Kalimantan (Borneo), he said.
    A tender for engineering work on the Asia Port project will
be offered mid-year. Habibie did not say when the terminal was
expected to be operational.


.I 10206
.C
acq
.W
WARBURG PINCUS STARTS SYMBION <SYMB> BID.
    NEW YORK, March 16 - <Warburg, Pincus Capital Corp> said it
has started a tender offer for up to 2,500,000 common shares of
Symbion Inc at 3.50 dlrs each.
    In a newspaper advertisement, The firm said the opffer is
not conditioned on receipt of any minimum number of shares but
is conditioned on holders of nor more than 400,000 Symbion
sharesseeking to receive the fair value of their shares under
provisions of the Utah Business Corporation Act.  Warburg said
receipt of 2,500,000 shares would raise its interest in Symbion
to about 59.3 pct from 25.8 pct currently and give it control.
    Warburg said it reserves the right to buy more than
2,500,000 shares if the offer is oversubscribed but has no
present intention of doing so.  It said it has asked Symbion to
provide its shareholder list to help in disseminating the
offer.
    The firm said the offer, proration period and withdrawal
rights expire April 22 unless extended.


.I 10208
.C
earn
.W
ZIM ENERGY <ZIMR> TO SELL SHARES PRIVATELY.
    HOUSTON, March 16 - ZIM Energy Corp said it has entered
into an agreement for a group consisting of <Strategy and
Development Inc>, <Norsk Vikingolje A/S> of Oslo and MIS Gas
Corp -- which already owns one third of ZIM -- to buy 15 to 20
mln new common shares at 20 cts each in association with <Polo
Energy Corp> and <Jaguar Petroleum Corp>.
    The company said the investor group also bought about 6.3
mln shares from ZIM management. It said James Mitchell, William
Richardson and Steven Duin have resigned as officers and
directors.
    ZIM said Chemclear Inc <CMCL> has unilaterally canceled an
agreement to merge with ZIM, and ZIM's board is studying the
possiblity of a claim against Chemclear.
    The company said it expects to report a loss for the year
of about 3,125,000 dlrs due to lower oil and natural gas
prices, unsuccessful well workover programs and excessive
overhead and corporate expenses. It said it plans a dramatic
reduction in overhead costs that should improve results.
    The company said Michel Billard has been named chairman and
Robert Berckmans has been named president and chief executive,
and Berckmans and two others have joined the board.
    ZIM said it has agreed to acquire the remaining interest in
its Buccaneer and Blue Dolphin Pipeline affiliates for about
one mln dlrs in cash and stock.  It gave no further details.


.I 10209
.C
earn
.W
BLUEFIELD SUPPLY <BFLD> IN LIQUIDATING PAYOUT.
    BLUEFIELD, W. Va., March 16 - Bluefield Supply Co said its
board declared its second liquidating dividend of 1.71 dlrs per
share, payable March 16 to shareholders of record March 13.
    The company paid an initial liquidating dividend of 15.75
dlrs per share on January Eight.


.I 10210
.C
earn
.W
BERGEN BRUNSWIG CORP <BBCA> 2ND QTR FEB 28 NET.
    ORANGE, Calif., March 16 -
    Shr 33 cts vs 48 cts
    Shr diluted 33 cts vs 44 cts
    Net 4,435,000 vs 6,410,000
    Revs 839.3 mln vs 751.8 mln
    1st half
    Shr 55 cts vs 94 cts
    Shr diluted 55 cts vs 88 cts
    Net 7,374,000 vs 12.6 mln
    Revs 1.68 billion vs 1.51 billion


.I 10212
.C
acq
.W
DIXONS SELLS 8.3 MLN WOOLWORTH SHARES.
    LONDON, March 16 - Dixons Group Plc <DXNS.L> has sold 8.3
mln shares in Woolworth Holdings Plc <WLTH.L> through Salomon
Brothers U.K. Equity Ltd, a statement from Salomon said.
    The shares were placed with about 45 to 50 institutions in
Europe and the Far East. Dixons retains one mln Woolworth
shares, a Dixons spokesman added.
    Industry sources said Dixons acquired the Woolworth shares
in connection with its unsuccessful bid for the company last
year.
    Dixons paid an average price of 695p per share which
compares with 819p today. Woolworth closed on Froday at 833p.
    A Dixons spokesman said the decision to retain one mln
shares reflected Woolworth's buoyant prospects.


.I 10213
.C
earn
.W
JOULE' INC <JOUL> SETS STOCK SPLIT.
    EDISON, N.J., March 16 - Joule' Inc said its board declared
a three-for-two stock split, payable April 30, record March 31.


.I 10216
.C
acq
.W
<WHIPPANY PAPER BOARD CO INC> MERGER APPROVED.
    NEW YORK, March 16 - Whippany Paper Board Co Inc said
shareholders at a special meeting approved a merger into NPN
Inc for 2.50 dlrs per share.
    NPN acquired control of Whippany in a recent tender offer.


.I 10217
.C
acq
.W
NORTHERN AIR FREIGHT <NAFI> GETS, REJECTS, BID.
    LIMA, Pa., March 16 - Privately-held <Pilot Air Freight>
said it met with officials of Northern Air Freight Inc to try
to negotiate a friendly acquisition of Northern, but Northern's
management had no interest in the proposal.
    Northern has annual revenues of about 60 mln dlrs and is
based in Seattle.
     


.I 10221
.C
earn
.W
AMERICAN BUILDING MAINTENANCE <ABM> 1ST QTR NET.
    SAN FRANCISCO, March 16 -
    Shr 35 cts vs 44 cts
    Net 1,311,000 vs 1,619,000
    Revs 125.2 mln vs 117.2 mln
    NOTE: American Building Maintenance Industries Inc.


.I 10222
.C
acq
.W
RENOUF EXTENDS BENEQUITY HOLDINGS <BH> OFFER.
    NEW YORK, March 16 - Renouf Corp International said it has
extended the expiration of its offer to pay 31 dlrs a unit to
buy all outstanding units of Benequity Holdings a California
Limited Partnership to March 24 from March 13.
    As of March 13, Renouf said, about 3,847,375 units had been
tendered.
    Renouf pointed out this exceeds the minimum number sought
in the offer, but its statement gave no reason for the
extention. Benequity has 5.7 mln units outstanding.


.I 10225
.C
earn
.W
NEW WORLD PICTURES LTD <NWP> 4TH QTR NET.
    LOS ANGELES, March 16 -
    Shr 32 cts vs 21 cts
    Net 4,717,000 vs 2,587,000
    Revs 72.9 mln vs 37.9 mln
    Avg shrs 14.7 mln vs 12.6 mln
    Year
    Oper shr 75 cts vs 41 cts
    Oper net 10.7 mln vs 4,642,000
    Revs 188.9 mln vs 106.6 mln
    Avg shrs 14.2 mln vs 1.4 mln
    NOTE: 1985 year net excludes 495,000 dlr tax credit.


.I 10226
.C
earn
.W
LOWRANCE ELECTRONICS INC <LEIX> 2ND QTR JAN 31.
    TULSA, Okla., March 16 -
    Shr profit 17 cts vs loss two cts
    Net profit 520,000 vs loss 51,000
    Sales 11.1 mln vs 6,897,000
    1st half
    Shr profit 34 cts vs profit 12 cts
    Net profit 951,000 vs profit 320,000
    Sales 20.6 mln vs 14.9 mln


.I 10227
.C
earn
.W
COMMTRON CORP <CMR> 2ND QTR FEB 28 NET.
    WEST DES MOINES, Iowa, March 16 -
    Shr 16 cts vs 22 cts
    Net 1,574,000 vs 1,725,000
    Sales 104.2 mln vs 116.0 mln
    Avg shrs 10.1 mln vs eight mln
    1st half
    Shr 37 cts vs 37 cts
    Net 3,675,000 vs 2,925,000
    Sales 244.5 mln vs 230.6 mln
    Avg shrs 10.0 mln vs eight mln


.I 10228
.C
palm-oil;veg-oil;
.W
INDONESIA HAS IMPORTED PALM OIL, TRADERS SAY.
    LONDON, March 16 - Indonesia has imported palm oil this
year and is likely to take more, trade sources said.
    They were commenting on a weekend Jakarta report quoting a
Ministry of Trade spokesman as saying Indonesia had not issued
licences to import the commodity. He also said there was no
sign of a shortage of palm oil in Indonesia.
    A major palm oil dealer said he shipped Malaysian palm oil
to Indonesia in February, additional vessels were loading this
month and other vessels had been earmarked for April.
    Other operators claimed they had palm oil booked for
Indonesia but would not disclose tonnages.
    Traders said palm oil production in Indonesia this year had
been below expectations and current stocks were low. They said
licences were issued at the start of the year to import crude
palm oil but were subsequently revised to include RBD olein and
RBD oil.
    Last week there were rumours in European markets that
Indonesia had issued licences to import around 135,000 tonnes
of palm oil for deliveries commencing April. An Indonesian
Ministry of Trade official said this was incorrect.
    Some traders here said the total could be more. Others said
they could include those issued earlier this year and
applications not yet granted.


.I 10229
.C
earn
.W
WHOLESALE CLUB INC <WHLS> 4TH QTR JAN 31 NET.
    INDIANAPOLIS, March 16 -
    Shr profit two cts vs loss 16 cts
    Net profit 558,000 vs loss 580,000
    Sales 66.2 mln vs 29.5 mln
    Avg shrs 4,476,000 vs 3,615,000
    Year
    Shr loss 61 cts vs loss 79 cts
    Net loss 1,760,000 vs loss 2,180,000
    Sales 158.4 mln vs 76.3 mln
    Avg shrs 4,475,000 vs 2,751,000


.I 10230
.C
earn
.W
MSA REALTY CORP <SSS> 4TH QTR NET.
    INDIANAPOLIS, March 16 -
    Shr profit four cts vs loss two cts
    Net profit 247,970 vs loss 57,341
    Revs 2,393,622 vs 2,627,612
    Avg shrs 5,958,423 vs 2,440,100
    Year
    Shr profit 71 cts vs loss 35 cts
    Net profit 3,213,310 vs loss 849,180
    Revs 14,571,434 vs 9,099,767
    Avg shrs 6,177,666 vs 2,440,083
    NOTE: 1986 earnings include a loss from carryforward of
investment tax credits of 85,000 dlrs in the quarter and a gain
of 250,000 dlrs, or four cts a share for the year


.I 10231
.C
cpi
.W
ECONOMIC SPOTLIGHT -FRANCE AWAITS ECONOMIC LIFT.
    By Brian Childs, Reuters
    PARIS, March 16 - A year after squeezing to power with a
narrow bare coalition majority, Gaullist Prime minister Jacques
Chirac has swept away a cobweb of controls and regulations
choking the French economy.
    But France is still waiting for a promised industrial
recovery the government says will follow from its free market
policies. Company profits and the stock market are rising. But
so is unemployment. Growth is stagnant at about two pct a year
and the outlook for inflation, held to a 20-year low of 2.1 pct
in 1986, is uncertain.
    Forced last month to cut the government's 1987 growth
target and raise its inflation estimate, Finance Minister
Edouard Balladur ruled out action to stimulate the economy. But
some government supporters say they fear time for an economic
miracle may be running out.
    The political clock is ticking towards Presidential
elections due by April next year.
    France's economic performance, led by a mixed cast of
right-wing ministers and a socialist President, has won mixed
reviews from non-partisan analysts.
    For Michel Develle, Director of Economic Studies at
newly-privatised Banque Paribas, the government's outstanding
achievement has been to launch "a veritable intellectual
revolution" breaking the staid habits formed by centuries of
state control.
    "The figures may look mediocre -- neither good nor bad --
but set in their context of structural reforms, they are
excellent," Develle said.
    But some analysts say they fear that Balladur, chief
architect of the government's free market policies, may be
pursuing a mirage.
    "The belief that economic liberalism will produce an
explosion of economic forces is ideological" said Indosuez chief
economist Jean Cheval. "Personally I think it's an illusion.
Dirigisme (direction) is a basic fact of the French system,
from school onwards. Ultra-liberalism is impossible."
    Illusion or not, the government has pushed its vision hard.
Over the past year foreign exchange and consumer price controls
have been largely abolished, labour regulations have been
pruned to ease the sacking of redundant workers and a hugely
popular programme has been launched to sell state-owned banks
and industries to private investors.
    Since December, nearly five mln French investors have
bought shares in Cie Financiere de Paribas <PARI.PA> and glass
maker Cie de Saint-Gobain SA <SGEP.PA>, the first two state
companies brought to the stock market under the 300 billion
franc five-year privatisation plan.
    Encouraged by an amnesty for past illegal exports of
capital, and the lifting of most currency controls, money has
flooded into the Paris stockmarket from abroad, helping to lift
the market 57 pct last year and another 12.5 pct since
December.
    At the end of last year the government abolished price
controls that had existed for 42 years on services such as car
repairs and hairdressing, freeing from state intervention small
businesses which account for some 60 pct of the French economy.
    The immediate result was a 0.9 pct rise in consumer prices
in January, partly responsible for a forced revision in the
official 1987 inflation forecast, to 2.5 pct from two pct or
less.
    "But even 2.5 pct would be a fantastic result, when you
consider that prices are now free for the first time since
1945," commented Develle of Paribas.
    Other achievements include a major reduction in the state's
foreign debts, and a cut in the state budget deficit to 141.1
billion francs last year, 2.5 billion francs below target and
down from 153.3 billion in 1985.
    But despite a healthy balance of payments surplus and a
gradual improvement in industrial productivity, the French
franc was forced by speculators in January into a humiliating
three pct devaluation against the West German mark, its second
since Chirac took power.
    A recent report by the Organisation for Economic
Cooperation and Development pilloried French industry for
failing to produce the goods that its potential customers
wanted.
    Outside the mainly state-controlled high technology
sectors, French industrial goods were "increasingly ill-adapted
to demand" and over-priced, the report said.
    French economists, including Cheval at Indosuez, agreed
with the report. "One of the assumptions of the government is
that if you give them freedom, the employers will invest and
modernise....But nine out of ten will say yes, they like
freedom, and then wait to be told which way to go," he said.
    And despite rising industrial investment and the
introduction of special incentives to boost youth employment,
the end-1986 number of jobless was reported at a record 2.7
million, some 300,000 more than a year earlier.
    The problem for the government is that there may be little
more it can do to prod the economy into faster growth.
    French producers failed more than most to take advantage of
last year's oil price falls and growth hopes now rest on the
shaky prospects of expansion in other industrial countries like
West Germany and Japan, they say.
 REUTER...

.I 10233
.C
acq
.W
******BECOR WESTERN GETS OFFER TO BE ACQUIRED BY NEW GROUP FOR 15.50 DLRS SHARE.
Blah blah blah.

.I 10234
.C
earn
.W
EVEREST AND JENNINGS INTERNATIONAL <EJA> 4TH QTR.
    LOS ANGELES, March 16 -
    Shr profit nine cts vs loss 58 cts
    Net profit 738,000 vs loss 4,643,000
    Sales 50.9 mln vs 43.8 mln
    Year
    Shr profit 1.50 dlrs vs loss 61 cts
    Net profit 12.1 mln vs loss 4,875,000
    Sales 195.3 mln vs 174.2 mln
    NOTE: 1985 net both periods includes 4,952,000 dlr
provision for plant closing.
    1985 net includes gains on sale of West Los Angeles real
estate of 650,000 dlrs in quarter and 1,471,000 dlrs in year.
    1986 year net includes gains on sale of West Los Angeles
real estate of 9,903,000 dlrs.


.I 10236
.C
gold
.W
GERMAN BANK SEES HIGHER GOLD PRICE FOR 1987.
    HAMBURG, March 16 - Gold is expected to continue its rise
this year due to renewed inflationary pressures, especially in
the U.S., Hamburg-based Vereins- und Westbank AG said.
    It said in a statement the stabilisation of crude oil
prices and the Organisation of Petroleum Exporting Countries'
efforts to achieve further firming of the price has led to
growing inflationary pressures in the U.S.
    Money supplies in the U.S., Japan and West Germany exceed
central bank limits and real growth of their gross national
products, it added.
    Use of physical gold should rise this year due to increased
industrial demand and higher expected coin production, the bank
said.
    Speculative demand, which influences the gold price on
futures markets, has also risen, the bank said.
    These factors and South Africa's unstable political
situation, which may lead to a temporary reduction in gold
supplies from that country, underscore the firmer sentiment, it
said.
    However, Australia's output is estimated to rise to 90
tonnes this year from 73.5 tonnes in 1986.


.I 10239
.C
earn
.W
*****ENDOTRONICS SEES HEAVY LOSSES IN QTR FROM WITHDRAWAL OF JAPAN DISTRIBUTOR.
Blah blah blah.

.I 10240
.C
earn
.W
ALPINE GROUP INC <AGI> 3RD QTR JAN 31 NET.
    HACKENSACK, N.J., March 13 -
    Shr profit seven cts vs loss five cts
    Net profit 303,000 vs loss 205,000
    Revs 16,945,000 vs 7,695,000
    Nine mths
    Shr profit 27 cts vs profit 19 cts
    Net profit 1,161,000 vs profit 787,000
    Revs 39.2 mln vs 22.8 mln
    NOTE: Profits include gains of 130,000 dlrs, or three cts a
share, in quarter and 490,000 dlrs, or 11 cts a share, vs
52,000 dlrs, or one cent a share, in nine months from tax loss
carryforward


.I 10241
.C
earn
.W
BSI SAYS EXPECTS ANOTHER GOOD YEAR IN 1987.
    ZURICH, March 16 - Banca della Svizzera Italiana <BISZ.Z>
said it expected business to be good again this year after
1986's 15.2 pct increase in net profit to 42 mln Swiss francs.
    Chief Executive Giorgio Ghiringhelli told reporters he
expected almost all important sectors to expand well in 1987.
An important exception would be its securities business, which
would grow more slowly.
    Ghiringhelli also said the bank planned to convert its
representation in London into a subsidiary at the end of this
year and further expand activities at its New York subsidiary,
particularly in private banking.


.I 10242
.C
acq
.W
******DIAMOND SHAMROCK SETS 27 PCT PRORATION FACTOR FOR TENDERED SHARES.
Blah blah blah.

.I 10243
.C
ship
.W
BRAZILIAN BANK WORKERS DECIDE ON NATIONAL STRIKE.
    CAMPINAS, Brazil, March 16 - Brazilian bank workers voted
to launch a nationwide strike this month, compounding labour
unrest arising from the failure of the government's
anti-inflation plan.
    At a rally in this city, about 100 km northwest of Sao
Paulo, about 5,000 bank workers voted to strike on March 24
unless their demand for 100 pct pay rises is met.
    Wilson Gomes de Moura, president of the national
confederation which groups the bank employees' 152 unions
representing 700,000 workers, told Reuters the indefinite
stoppage would affect all banks.
    The vote came as a stoppage by seamen entered its third
week and as 55,000 oil workers threatened action against the
state-owned petroleum company Petrobras.


.I 10244
.C
acq
.W
BECOR WESTERN <BCW> GETS OFFER TO BE ACQUIRED.
    MILWAUKEE, March 16 - Becor Western Inc said <Investment
Limited Partnership> of Greenwich, conn., and Randolph W. Lenz
are offering to acquire Becor for 15.50 dlrs per share, subject
to Becor's receipt of at least 110 mln dlrs from the proposed
sale of its Western Gear Corp subsidiary.
    Becor said it has also received expressions of interest
from other parties seeking information about Becor.
    Becor had previously agreed to sell Western Gear for at
least 110 mln dlrs and to be acquired by BCW Acquisition Inc
for 10.45 dlrs in cash and four dlrs in debentures per Becor
share.  BCW was formed by Becor executives and <Goldman, Sachs
and Co>.  Both deals are subject to shareholder approval.


.I 10245
.C
acq
.W
CLARK EQUIPMENT <CKL> STAKE ACQUIRED.
    SOUTH BEND, IND., March 16 - Clark Equipment Co said it was
informed by Arthur M. Goldberg acting on behalf of a group of
investors that the group had accumulated 1,262,200 shares, or
about 6.7 pct of Clark's outstanding common stock.
    It said Goldberg recently approached Clark to repurchase
the shares. However, negotiations for the block repurchase were
unsuccessful and have been terminated.


.I 10246
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 16 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 295,000 to 302,000 head versus
293,000 week ago and 309,000 a year ago.
    Cattle slaughter is guesstimated at about 123,000 to
126,000 head versus 123,000 week ago and 121,000 a year ago.


.I 10247
.C
coffee
.W
PATON REPORTS U.S. GREEN COFFEE ROASTINGS HIGHER.
    NEW YORK, March 16 - U.S. roastings of green coffee in the
week ended March 7 were about 325,000 (60-kilo) bags, including
that used for soluble production, compared with 290,000 bags in
the corresponding week of last year and about 315,000 bags in
the week ended February 28, George Gordon Paton and Co Inc
reported.
    It said cumulative roastings for calendar 1987 now total a
3,295,000 bags, compared with 3,620,000 bags by this time last
year.


.I 10248
.C
acq
.W
AVIA STOCKHOLDERS SEEK TO BLOCK SALE TO REEBOK.
    PORTLAND, Ore., March 16 - <Avia Group International Inc> 
stockholders filed a class a action suit in Multnomah County
Circuit court seeking to halt the sale of Avia to Reebok
International Ltd <RBOK>.
    Avia stockholders also seek to receive compensation from
the defendants, who include most of Avia directors, according
to court papers.
    The suit grew out a meeting of several dozen dissatisfied
minority stockholders of Avia following the announcement of
Reebok's proposed acquisition of Avia and the sudden drop in
the price of Avia stock.
    The complaint was filed on behalf of Clem Eischen, a
Portland-area resident, who owns 500 shares of Avia, and Robert
Withers, also of the Portland-area, who owns 954 shares, and
other individuals who held stock at the time of Reebok's
announcement. A jury trial has been requested.
    "The actions of the small group that contral Avia have hurt
the little guy," said Eischen.
    The stockholders, according to a statement, have organized
a steering committee.
    The complaint reviews the price action of Avia stock from
March 1986 and noted the plaintifs who purchased stock between
19 dlrs and 25 dlrs per share. The price fell from 24 dlrs to
16.50 dlrs a share following the Reebok announcement.
    The complaint asked the defendants be enjoined from
proceeding with the Reebok acquisition of Avia. It also
requests damages to be determined at the time of trial.
    Avia said it had not seen the court papers and said it had
no comment on the suit.


.I 10249
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 451 MLN STG AFTERNOON HELP LONDON,.
March 16 - The Bank of England said it provided the money
market with a further 451 mln stg assistance.
    This brings the bank's total help today to 571 mln stg and
compares with its estimate of the deficit in the system which
was earlier revised down to 1.10 billion stg from 1.15 billion.
    The central bank bought 108 mln stg of bills for resale to
the market in equal amounts on April 1, 2 and 3 at 10-7/16 pct.
    It also made outright purchases comprising 326 mln stg of
bank bills in band one at 10-3/8 pct, 15 mln stg of bank bills
in band two at 10-5/16 pct and two mln stg of local authority
bills in band one at 10-3/8 pct.


.I 10251
.C
money-fx;grain;corn;
.W
ZAMBIA, IMF TALKS STALL ON FOOD SUBSIDIES.
    LUSAKA, March 16 - Zambia's talks with the World Bank and
International Monetary Fund (IMF) on a financial rescue package
have run into difficulties on the issue of food subsidies, an
official newspaper said.
    The Times of Zambia, which is run by the ruling United
National Independence Party (UNIP), quoted official sources as
saying the IMF and World Bank had refused to continue financing
food subsidies and were pressing the government to explain how
it proposes to pay for them.
    President Kenneth Kaunda tried to abolish maize subsidies
last December, in line with IMF recommendations, but the move
caused maize meal prices to double overnight and led to riots.
    The subsidies were immediately restored as part of moves to
quell the disturbances.
    The Times of Zambia said another major issue in the
government's current talks with the IMF and World Bank was the
remodelling of Zambia's foreign exchange auction.
    The central bank's weekly auction of foreign exchange to
the private sector has been suspended since the end of January,
pending modifications to slow down the rate of devaluation and
dampen fluctuations in the exchange rate.
    The kwacha slid to around 15 per dollar under the auction,
losing 85 pct of its value in 16 months, but since the end of
January has been revalued to a fixed rate of nine per dollar.
    Banking sources said Zambia was persuaded by the World Bank
and IMF to lift its proposed ceiling of 12.50 kwacha per dollar
on the currency's devaluation once the auctions restart.


.I 10252
.C
earn
.W
DWG CORP <DWG> 3RD QTR JAN 31 NET.
    MIAMI, March 16 -
    Oper shr profit 17 cts vs profit 10 cts
    Oper net profit 5,146,000 vs profit 2,691,000
    Revs 269.5 mln vs 274.4 mln
    Avg shrs 20.5 mln vs 17.0 mln
    Nine mths
    Oper shr profit 14 cts vs loss 45 cts
    Oper net profit 4,131,000 vs loss 7,148,000
    Revs 802.8 mln vs 766.0 mln
    Avg shrs 20.4 mln vs 16.9 mln
    NOTE: Net excludes discontinued operations loss 1,667,000
dlrs vs profit 42,000 dlrs in quarter and loss 2,123,000 dlrs
vs profit 1,334,000 dlrs in nine mths.
    Net excludes gains on insurance recovery of 54,000 dlrs vs
91,000 dlrs in quarter and 1,289,000 dlrs vs 218,000 dlrs in
nine mths.
    Prior year net excludes 1,103,000 dlr loss from change in
accounting for textiles inventories.
    Prior year results for discontinuance of apparel segment
and change in accounting for textile inventories.
    Share adjusted for stock dividends.
    Net includes pretax unrealized loss provision recoveries
related to marketable securities of 580,000 dlrs vs 824,000
dlrs in quarter and recovery 640,000 dlrs vs provision 366,000
dlrs in nine mths.
    Prior nine mths net includes pretax gain on sale of
marketable securities of 493,000 dlrs.
    Net includes tax credits 5,738,000 dlrs vs 494,000 dlrs in
quarter and credit 4,194,000 dlrs vs provision 11.2 mln dlrs in
nine mths.


.I 10253
.C
acq
.W
DIAMOND SHAMROCK <DIA> SETS PRORATION FACTOR.
    DALLAS, March 16 - Diamond Shamrock Corp said it will
accept about 27 pct of the 73,653,000 shares of its common
stock tendered in response to the company's offer to pay 17
dlrs a share for 20 mln shares.
    The company said it expects to mail checks representing the
purchase price of the 20 mln shares purchased later this week
and will be returning unpurchased shares shortly thereafter.


.I 10255
.C
earn
.W
<BRALORNE RESOURCES LTD> YEAR LOSS.
    CALGARY, Alberta, March 16 -
    Shr loss 2.70 dlrs vs loss 25 cts
    Net loss 60.6 mln vs loss 3,122,000
    Revs 101.0 mln vs 167.7 mln
    Note: 1986 includes charge of 44.1 mln dlrs due to
writedown of oil and gas interests, writeoff of goodwill and
patents, provision against disposal of surplus inventory,
losses on disposition of operating units and writedown of
assets held for disposal.


.I 10257
.C
money-fx;interest;
.W
******BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.
Blah blah blah.

.I 10258
.C
earn
.W
H AND R BLOCK <HRB> SEES GAINS FROM TAX REFORM.
    By Jane Light, Reuters
    CHICAGO, March 16 - With the April 15 tax return deadline
less than a month away, confused taxpayers will be converging
on H and R Block Inc's offices to interpret the new tax codes.
    Financial results for the nation's largest tax preparer are
expected to be good in fiscal 1987 but next year could be a
"bonanza," analysts say.
    "For the short term the key word is confusion, Block Vice
President Tom Bloch said in an interview. "When Congress
drastically changes laws, confusion results and tax preparers
benefit," Bloch said.
    "Next year, when taxpayers take the new forms and place
them side by side to compare them, more people will throw their
hands up and say 'I'm going to get help,'" he said.
"Tax forms will look very different next year," he added.
    Kidder Peabody analyst Herbert Buchbinder expects Block's
fiscal 1987 year (to end April 30) to show good gains over
fiscal 1986 earnings of 60.1 mln dlrs or 2.41 dlrs a share on
revenues of 606.7 mln dlrs. He estimates Block's fiscal 1987
earnings at 2.75 to 2.80 dlrs.
    "Next year, Block could have a bonanza," Buchbinder said.
Based on estimates of a larger work force, Block could show a
gain of more than five pct in tax forms prepared, he said. In
the 1986 tax season, Block prepared 9,215,300 U.S. tax returns,
up 1.5 pct over the previous year.
    The Internal Revenue Service estimates about 100 mln
individual income tax returns will be filed for the 1987 tax
season, up from last year's 94 mln forms. Professional tax
preparers accounted for just over 43 million forms, according
to the IRS.
    For the longer term, while confusion will continue to bring
clients into Block's 8,866 tax preparation offices worldwide,
there are some changes in the act that will have a negative
effect, Bloch conceded.
    Certain changes in filing requirements will shorten the tax
return, and in some cases, simplify the form, he noted. In
addition, some low income wage earners will be taken off the
tax rolls, he said.
    Block is currently analyzing its price structure to try to
offset some of the negatives. Last tax season, the average cost
for each return in the U.S. amounted to 48.05 dlrs and 45.73
dlrs worldwide, Bloch said. This tax season, rates will be up
about three or four pct, in line with the inflation rate, he
said.
    Block expects "some expansion" this tax season of its
electronic filing system which directly feeds into the IRS and
can speed up the refund process. Block can choose where and by
how much it wants to expand into the seven cities made
available for the direct filing by the IRS, Bloch noted.
    The IRS estimates about 90,000 returns will be directly
filed this tax season, up from the 26,000 returns injected in
the 1986 tax season.
    First Kansas City analyst Jonathan Braatz said that Block
will benefit greatly from lower tax rates in fiscal 1988.
    Braatz expects Block's advertising budget to be about the
same as last year which will be helped a bit by lower costs for
television ads. "They may get a little more bang for their
buck," he said.
    He estimates Block has about 150 mln dlrs cash on its
balance sheet sheet, and says if interest rates rise it could
be of great benefit to them.


.I 10259
.C
earn
.W
AUSIMONT COMPO NV <AUS> RAISES QUARTERLY.
    WALTHAM, Mass., March 16 -
    Qtly div eight cts vs five cts prior
    Pay April 24
    Record April Three


.I 10262
.C
acq
.W
ALDERSHOT AGREES TO ACQUIRE INTRACOASTAL REFINING.
    Calgary, Alberta, March 16 - Aldershot Resources Ltd said
it signed an interim agreement to acquire 100 pct of the
outstanding shares of Intracoastal Refining Inc of Conroe,
Texas.
    Aldershot will pay a certain number of shares of common
stock based on book value, and up to a maximum of one mln
shares under a formula linked to the next five years' pre-tax
net revenues.
    The transaction is subject to completion of a definitive
agreement and to regulatory approval.


.I 10263
.C
acq
.W
DERLAN ACQUIRES 80 PCT OF AURORA INDUSTRIES.
    Toronto, March 16 - <Derlan Industries Ltd> said it
acquired 80 pct of Aurora Industries Inc of Montgomery,
Illinois for an undisclosed price.
    Closing is subject to completion of legal formalities,
Derlan said.


.I 10264
.C
earn
.W
MARION LABS <MKC> VOTES SPLIT, DIVIDEND HIKE.
    KANSAS CITY, MO., March 16 - Marion Laboratories Inc said
its board declared a two-for-one common stock split in the form
of a dividend, with distribution April 21, record March 25.
    The board also said it intends to increase the regular
quarterly dividend by 43 pct, to five cts a share, reflecting
the split. It said the increase will be declared at the May
1987 board meeting and reflected in regular payments beginning
in July 1987.


.I 10265
.C
acq
.W
DART SEEKS SUPERMARKETS <SGL> NEGOTIATIONS.
    LANDOVER, Md., March 13 - <Dart Group Inc> said it is
preparted to negotiate all terms of its proposed acquisition of
Supermarkets General Corp.
    Early this month, Dart made an unsolicited offer of 41.75
dlrs a share in cash for Supermarkets General's stock.
    Releasing a letter sent friday to Supermarkets General,
Dart said "we believe that an agreement can be reached which
will be in the best interests of Supermarkets General, its
stockholders, management, employees and customers.
    "To that end, we are prepared to negotiate all terms of an
acquisition agreement," Dart said.
    Dart said it urges a meeting with Supermarkets General
officials be held promptly.
    The letter pointed out the company has not heard from
Supermarkets General since making the offer "other than on this
past Monday when we were informed that our offer would be
seriously considered and that you would get back to us on a
timely basis to arrange a meeting."
    Dart said it has "acted openly and amicably" in an effort
to facilitate its proposed acquisition, adding it has not
purchased additional Supermarkets General stock since prior to
submission of its offer.
    Dart said it continues to be interested in acquiring
Supermarkets General in a friendly manner, noting it has given
the company "the tune that you suggested in order to allow you
to evaluate the available options."
    Dart now owns 1.9 mln Supermarkets General shares, slightly
less than five pct of those outstanding.


.I 10267
.C
earn
.W
DECORATOR INDUSTRIES INC <DII> 4TH QTR NET.
    PITTSBURGH, Pa., March 16 - Ended Jan three
    Shr profit five cts vs NA
    Net profit 58,088 vs loss 279,718
    Revs 6,310,841 vs 5,468,893
    Year
    Shr profit 12 cts vs loss 74 cts
    Net profit 126,321 vs loss 773,090
    Revs 23.1 mln vs 19.1 mln
    NOTE: Loss per share not given for quarter.


.I 10268
.C
earn
.W
MCCORMICK AND CO INC <MCCRK> 1ST QTR NET.
    HUNT VALLEY, Md., March 16 -Qtr ends Feb 28
    Shr 37 cts vs 35 cts
    Net 4,346,000 vs 4,202,000
    Revs 232,006,000 vs 223,151,000
    


.I 10269
.C
earn
.W
VALUE LINE INC <VALU> 3RD QTR JAN 31.
    NEW YORK, MARCH 16 -
    Shr 52 cts vs 25 cts
    Net 5,154,000 vs 2,496,000
    Revs 17.7 mln vs 14.4 mln
    Nine months
    Shr 1.16 dlrs vs 70 cts
    Net 11.5 mln seven mln
    Revs 50.3 mln vs 41.2 mln
    NOTE: 1987 periods include pretax investment income
of 2.9 mln dlrs in capital gains distributions from mutual fund
investment.


.I 10270
.C
acq
.W
THERMO ELECTRON <TMO> CONSIDERS UNIT STAKE SALE.
    WALTHAM, Mass., March 16 - Thermo Electron Corp said it has
entered into talks with underwriters on the possible public
sale of a minority interest in its packaged cogeneration
systems subsidiary, Tecogen Inc.
    The company also said it plans to offer convertible
subordinated debentures publicly.
    It gave no further details.


.I 10271
.C
earn
.W
HONGKONG BANK OF CANADA 1ST QTR JAN 31 NET.
    Vancouver, British Columbia, March 16 -
    Net 3.1 mln vs not given
    Note: results not comparable with last year due to November
1986 acquisition of Bank of British Columbia.
    Subsidiary of <Hongkong and Shanghai Banking Corp>


.I 10272
.C
earn
.W
SALANT CORP <QSLT> 4TH QTR NOV 29 NET.
    NEW YORK, March 16 -
    Oper shr profit 45 cts vs profit 56 cts
    Oper net profit 1,492,000 vs profit
    1,842,000
    Sales 36.5 mln vs 38.5 mln
    Year
    Oper shr profit 48 cts vs loss 2.44 dlrs
    Oper net profit 1,596,000 vs loss 8,084,000
    Sales 131.1 mln vs 144.5 mln
    NOTE: 1986 year net includes pretax provision for loss on
sale of subsidiary of 1,600,000 dlrs.
    1985 year net includes pretax loss 6,600,000 dlrs from
plant closing provision.
    1986 net excludes tax credits of 1,295,000 dlrs in quarter
and 2,712,000 dlrs in year.
    1986 net both periods excludes charge 9,400,000 dlrs for
estimated settlement and expenses connected with Chapter 11
bankruptcy.


.I 10273
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 550 MLN STG LATE HELP.
    LONDON, March 16 - The Bank of England said it provided the
money market with late assistance of around 550 mln stg.
    This takes the Bank's total help today to some 1.12 billion
stg and compares with its estimated deficit of around 1.10
billion.


.I 10275
.C
acq
.W
RENOUF EXTENDS BENEQUITY HOLDINGS <BH> OFFER.
    repeat
    NEW YORK, March 16 - Renouf Corp International said it has
extended the expiration of its offer to pay 31 dlrs a unit to
buy all outstanding units of Benequity Holdings a California
Limited Partnership to March 24 from March 13.
    As of March 13, Renouf said, about 3,847,375 units had been
tendered.
    Renouf pointed out this exceeds the minimum number sought
in the offer, but its statement gave no reason for the
extention. Benequity has 5.7 mln units outstanding.


.I 10276
.C
grain
.W
LYNG SAYS TOO LATE FOR CROP DECOUPLING THIS YEAR.
    WASHINGTON, March 16 - U.S. Agriculture Secretary Richard
Lyng said it is too late to implement a full 0/92 acreage
provision, or "decoupling," for 1987 grain crops.
    "I think there's a chance we'll see that legislation (0/92)
passed, (but) not for 1987 crops. It's too late," Lyng told the
National Grain and Feed Association convention here.
    Lyng added that there seems some support in Congress for
0/92 and there was a good chance a pilot 0/92 program will be
passed as part of a pending disaster bill.
    But he indicated that it is already too late in the year to
alter the 1987 crop program. Sign-up for spring crops closes
the end of this month.
    Overall, Lyng predicted very little change will be
legislated in the 1985 farm bill this year.


.I 10279
.C
earn
.W
SALANT <QSLT> FILES REORGANIZATION PLAN.
    NEW YORK, March 16 - Salant Corp said it and its Thomson Co
Inc and Obion Co Inc subsidiaries have filed a joint
reorganization plan with the U.S. Bankruptcy Court and expect
to emerge from Chapter 11 bankruptcy in the near future.
    The company said a hearing on the adequacy of the
associated disclosure plan is scheduled for April Nine and
completion of the plan is subject to approval by creditors,
equity security holders and the bankruptcy court.
    Salant said it has reached agreement for Ray W. williams to
continue as president and chief executive officer for five
years from the effective date of the reorganization plan and
has substantially concluded talks for a new 15 mln dlr
unsecured credit, effective the same date.
    The company said the committee of its unsecured creditgors
and the committee of its equity security holders have approved
the terms of the plan.  As previously announced, creditors will
receive 450 mln dlrs in cash, 500 dlrs of 13-1/4 pct senior
subordinated debentures and four common shares for each 1,000
dlrsd of allowed unsecured claims.
    Salant today reported earnings for the year ended November
29 of 1,596,000 dlrs, after a 1,600,000 dlr pretax provision
for loss on the sale of a subsidiary but before a 9,400,000 dlr
post-tax charge attributable to costs and expenses of Chapter
11 and the settlement of pre-Chapter 11 claims, as well as a
2,712,000 dlr tax credit.
    A year before, it lost 8,084,000 dlrs after a 6,600,000 dlr
pretax provision for plant closings.


.I 10280
.C
earn
.W
ANALOGIC CORP <ALOG> 2ND QTR JAN 31 NET.
    PEABODY, Mass., March 16 -
    Shr 11 cts vs 13 cts
    Net 1,965,577 vs 2,474,357
    Revs 38.3 mln vs 34.7 mln
    1st half
    Shr 61 cts vs 22 cts
    Net 11.3 mln vs 4,132,129
    Revs 84.4 mln vs 66.2 mln


.I 10284
.C
trade
.W
WEST GERMAN EXPORTS TO U.S. DROP SHARPLY.
    FRANKFURT, March 16 - West German exports to the United
States fell below four billion marks worth in January for the
first time since mid-1984, provisional Bundesbank data showed.
    The figures showed exports were 3.85 billion marks in
January, sharply down from December's 4.40 billion and the
lowest since the 3.56 billion exported to the U.S. In July
1984. This compared with 4.86 billion marks in January 1986.
    Total West German exports to Western industrialised
countries also fell in January to 34.76 billion marks from
December's 36.45 billion, also posting the lowest monthly total
since July 1984.
    West German exports to the European Community were 21.60
billion marks in January, down from 22.14 billion in December
and 22.94 billion in January last year, the figures showed.
    Exports to developing nations and centrally-planned
economies also slackened.
    Separately, Commerzbank AG said in a report that the focus
of West German exports this year was likely to shift to Europe
because of an expected downturn in growth in the dollar area.
    This was one of the strengths of West German exports
compared with Japan, which depended in large part on the U.S.,
OPEC and developing country markets, it added.


.I 10286
.C
acq
.W
******TEXAS AIR TO GIVE FORMER CONTINENTAL AIR HOLDERS ANOTHER 3.75 DLRS A SHARE.
Blah blah blah.

.I 10288
.C
cpi
.W
****** French February inflation between 0.1 and 0.2 pct vs 0.9 pct in january - official.
Blah blah blah.

.I 10289
.C
trade
.W
TRADE INTERESTS READY FOR FIGHT IN U.S. CONGRESS.
    By Jacqueline Frank, Reuters
    WASHINGTON, March 16 - U.S. lawmakers are gearing up for a
showdown between protectionists and free traders as a major
trade bill winds its way through committees to a vote by the
full House of Representatives in late April.
    In a move to toughen U.S. enforcement of trade laws, a key
House subcommittee last week approved a toned down version of
legislation to require President Reagan to retaliate against
foreign countries that follow unfair trade practices.
    This bill will be the cornerstone of congressional efforts
to restore competitiveness of American industries and turn
around last year's record 169 billion dlrs trade deficit.
    Several lawmakers have argued the new trade bill made too
many concessions to Reagan and said they intend to back
amendments to "get tough" with countries that violate trade
agreements or keep out U.S. products.
     On the other hand, congressmen known for their allegiance
to free trade, said the bill ties Reagan's hands too much in
trade disputes and they will seek to restore his negotiating
powers.
    Republican Bill Frenzel of Michigan said the subcommittee's
bill was not one "that a free trader like me could endorse in
all respects," but he emphasized there was a consensus among
trade lawmakers to work toward a bill Reagan and Republicans
would ultimately endorse.
    Frenzel said the goal of trade legislation was, "to make our
trade policy stronger without violating our international trade
agreements. You'll find a lot of people who think we have not
done the former enough. You'll find poeple who think we haven't
avoided violating agreements."
    In a key concession made at the urging of the powerful
chairman of the House Ways and Means Committee, the trade
subcommittee backed off a requirement that would have forced
Reagan to automatically impose quotas or tariffs on imports
from countries that engage in unfair trade practices.
    It also agreed he may waive any retaliation if it would
hurt the U.S. economy.
    Ways and Means chairman Dan Rostenkowski, an Illinois
Democrat, insisted the more moderate approach was necessary if
the House wanted to pass a bill Reagan would sign into law.
    Reagan last year had blocked Senate consideration of a
tough House trade bill he branded as protectionist and this
year only reluctantly agreed to support a trade bill when he
saw Democratic leaders were determined to pass a bill.
    As an indication of his success, White House spokesman
Marlin Fitzwater told reporters Friday the administration still
did not like some provisions. But he added, "Generally we feel
very good about the bipartisan consideration of the trade
legislation. I think we are progressing very well."
    The first battle will take place next week when the full
House Ways and Means Committee considers an amendment by Rep.
Richard Gephardt, a Missouri Democrat, to force countries such
as Japan, South Korea and Taiwan to cut their trade surpluses
with the United States.
    The subcommittee limited the Gephardt plan to provide only
that the existence of a large trade surplus with the United
States will trigger an investigation of unfair trade practices,
but would not automatically set off retaliation.
    Rep. Phil Crane, an Illinois Republican and staunch free
trader, said he will try to further weaken the Gephardt plan.
    Organized labor has pressed lawmakers for more relief from
imports where jobs have been lost to foreign competition.
AFL-CIO president Lane Kirkland this year angered the
administration in a statement that any trade bill Reagan would
sign would not be worth passage in Congress.
    But Rostenkowski set the tone of the trade debate in a
statement, "I'm not trying to write legislation to please Lane
Kirkland. I'm trying to write legislation that will be signed
by the president."
    In writing the bill, the subcommittee rejected calls for
trade relief for specific industries such as textiles.
    Rep. Ed Jenkins, a Democrat from Georgia, agreed to hold
off his fight. He intends to push separately a bill to protect
the domestic textile and shoe industry, an aide said. Reagan
vetoed a similar measure last year.
    House Speaker Jim Wright, a Texas Democrat, is one of the
most influential proponents of aid for specific industries
beset by low priced foreign competition.
    Wright Thursday renewed his call for import relief for the
domestic oil industry and announced his support for a Senate
plan to trigger a temporary oil import tariff when imports
reach half of domestic consumption.
    For the most part, the trade bill's provisions toughen U.S.
enforcement of trade laws. The bill forces the administration
to act rapidly on complaints of unfair trade practices such as
dumping products in the United States at prices below the cost
of production.
    It also forces the administration to act rapidly when an
industry complains that a surge in imports threatens its
existence. Congressmen said the change would have required the
U.S. International Trade Commission to impose limits on car
imports in 1981.


.I 10290
.C
earn
.W
ENDOTRONICS <ENDO> EXPECTS LOSS FOR YEAR.
    MINNEAPOLIS, March 16 - Endotronics Inc said it expects to
incur "substantial losses" for the second quarter ending March
31 and fiscal year ending Sept 30, 1987.
    As one factor behind the anticipated loss, Endotronics
cited a dispute by one of its Japanese distributors, <Yamaha
Inc>, over payment of a 3,686,000 dlr promissory note.
    In a Form 8-K filing with the Securities and Exchange
Commission, Endotronics said the note was for overdue accounts
receivable from sales of instruments to Yamaha and another
Japanese distributor during the company's 1986 fiscal year.
    Endotronics said at its present reduced level of operations
it will exhaust all currently available cash and credit
facilities in early May 1987. It said this assumes full use of
the remaining 1,250,000 dlrs available under a line of credit
from Celanese Corp, which requires approval of Celanese Corp
<CZ>.
    The company said its ability to obtain funding was
adversely affected by a suit filed March 4 by two of its
shareholders seeking to represent a class of holders against
three officers of Endotronics.
    Endotronics said the complaint against it alleges
violations of the federal securities laws in connection with
statements made in the company's annual and quarterly reports.
    The company also said the Securities Division of the
Minnesota Department of Commerce is conducting an inquiry into
the company's Japanese sales for fiscal 1986 and trading by
insiders and brokers in the company's common shares.
    It said similar inquiries are being conducted by the
Securities and Exchange Commission. The investigations will
hurt the company's ability to obtain funding, it said.
    As a result of the dispute over payment of the promissory
note, the law suit challenging its financial data and the
various investigations concerning insider trading, the company
said it no longer expects that anticipated declines in
instrument sales in Japan in fiscal 1987 will be offset by
increased instrument sales in other foreign countries and the
United States.


.I 10291
.C
cpi
.W
****** French February year on year inflation 3.4 pct vs three pct January - official.
Blah blah blah.

.I 10292
.C
acq
.W
CONTINENTAL AIR HOLDERS TO GET FURTHER PAYMENT.
    HOUSTON, March 16 - Texas Air Corp said under a settlement
of class action litigation with <Mutual Shares Corp>, former
minority shareholders of Continental Airlines Inc will receive
an additional 3.75 dlrs per share.
    In February, Texas Air acquired the minority interest in
Continental that it did not already own for 16.50 dlrs per
share. Mutual had challenged the adequacy of the price.
    Texas Air said any former Continental holder who has sought
appraisal rights under Delaware law may continue to seek the
appraisal remedy in Delaware Chancery Court or accept the
settlement and drop the appraisal process.
    Texas Air said the settlement has other terms relating to
employee shareholdrs of Continental, who will receive options
from Texas Air.  It did not give details.
    The company said the settlement is subject to approval by
the Delaware Chancery Court, which is expected to take about 60
days.


.I 10295
.C
cocoa
.W
COCOA CONSUMERS NARROW GAP ON BUFFER STOCK ISSUE.
    LONDON, March 16 - Representatives of cocoa consuming
countries at an International Cocoa Organization, ICCO, council
meeting here have edged closer to a unified stance on buffer
stock rules, delegates said.
    While consumers do not yet have a common position, an
observer said after a consumer meeting, "They are much more
fluid ... and the tone is positive."
    European Community consumers were split on the question of
how the cocoa buffer stock should be operated when the ICCO met
in January to put the new International Cocoa Agreement into
effect, delegates said.
    At the January meeting, France sided with producers on how
the buffer stock should operate, delegates said. That meeting
ended without agreement on new buffer stock rules.
    The EC Commission met in Brussels on Friday to see whether
the 12 EC cocoa consuming nations could narrow their
differences at this month's meeting.
    The Commissioners came away from the Friday meeting with an
informal agreement to respond to signs of flexibility among
producers on the key buffer stock issues, delegates said.
    The key issues to be addressed at this council session
which divide ICCO members are whether non-member cocoa should
be eligible for buffer stock purchases and what price
differentials the buffer stock should pay for different types
of cocoa, delegates said.
    A consumer delegate said producers and consumers should be
able to compromise on the non-member cocoa question.
    A working group comprising delegates from all producing and
consuming member countries met briefly this morning, then broke
up into a producer meeting and an EC meeting, followed by a
consumer meeting.
    Producers, who are in favour of the buffer stock buying a
variety of grades of cocoa and oppose non-member cocoa being
accepted, reviewed their position ahead of the working group
meeting this afternoon.
    "We are waiting to see what consumers say," a producer
delegate said. "We hope they will be flexible or it will be
difficult to negotiate."
    The ICCO comprises 33 member countries. Non-
members include the U.S., a consumer, and Malaysia, an
increasingly important producer.


.I 10296
.C
wheat;grain;
.W
CCC ACCEPTS WHEAT BID FOR W AFRICA COUNTRIES.
    WASHINGTON, March 16 - The Commodity Credit Corportion,
CCC, has accepted a bid for an export bonus to cover the sale
of 15,000 tonnes of U.S. wheat to West African countries, the
U.S. Agriculture Department said.
    The dark northern spring wheat is for shipment May 15-June
15, 1987.
    The bonus of 40.05 dlrs per tonne was made to Peavey
Company and will be paid in the form of commodities from the
CCC inventory, it said.
    An additional 315,500 tonnes of wheat are still available
to West African countries under the Export Enhancement Program
initiative announced October 30, 1986, it said.


.I 10298
.C
earn
.W
LOWRANCE ELECTRONICS <LEIX> SEES ORDERS OFF.
    TULSA, Okla., March 16 - Lowrance Electronics Inc said
results from operations in the third and fourth quarter may not
be comparable to the first and second quarters, which were
strong because of orders for new sonar equipment.
    For the six months ended Jan 31, the company reported net
income almost tripled to 951,000 dlrs or 34 cts a share as
sales rose 38 pct to 20.6 mln dlrs.
    The company, which went public Dec 23, also said it expects
to be able to fill back orders from the first two quarters
because of improved supply of computer chip components.
  


.I 10301
.C
cpu
.W
CANADA MANUFACTURING UTILIZATION RATE RISES.
    OTTAWA, March 16 - Utilization of Canadian manufacturing
capacity rose to 77.2 pct in the fourth quarter of 1986 from 77
pct in the third quarter, Statistics Canada said.
    "Although the change was small, this marked the first
quarter since the third quarter of 1985 in which the
utilization rates for manufacturing as a whole rose," the
federal agency said.
    Increased residential construction led to strong increases
in the building materials sector, led by a 3.3 pct increase in
non-metallic mineral industries.


.I 10302
.C
cpi
.W
FRENCH INFLATION SLOWS IN FEBRUARY.
    PARIS, March 16 - French inflation slowed in February to
between 0.1 and 0.2 pct against 0.9 pct in January, the
National Statistics Institute (INSEE) said.
    The retail price index showed a year-on-year rise of 3.4
pct against three pct in January. An INSEE official said the
final figure for February would be released later this month.
    After January's rise the government was forced to revise
its inflation target for 1987 to 2.5 pct year on year from an
initial target of two pct, after 2.1 pct in 1986.
    Finance Minister Edouard Balladur said half the January
rise was due to higher oil prices and forecast a February
slowing.


.I 10303
.C
earn
.W
CAPITOL BANCORP <CAPB> TO RESTATE NET TO LOSS.
    BOSTON, March 16 - Capitol Bancorp said it expects to
restate its results for 1986 to a loss of about one mln dlrs
due to a reclassification of loans recommended by auditor Ernst
and Whinney.
    The company said the restatement also reflects a
substantial increase in reserves of its principal subsidiary,
Capitol Bank and Trust Co.
    It said it expects to earn 2,250,000 to 2,750,000 dlrs for
the first quarter of 1987.
    Capitol said to maintain an adequate capital ratio it will
seek additional equity capital in the near future.
    It also said it has delayed its annual meeting until May
due to the restatement of annual earnings.
    Capitol said its board raised the quarterly dividend to 23
cts from 22 cts a share, payable April 28, record MArch 31.
    The company originally reported 1986 earnings of 7,700,000
dlrs.  It earned 3,848,000 dlrs in last year's first quarter.
    The annual meeting had been scheduled for the second week
of April.


.I 10304
.C
oilseed;veg-oil;soybean;
.W
U.S. SOY PRODUCERS THINK EC OILS TAX UNLIKELY.
    THE HAGUE, March 16 - American soybean producers are
confident the proposed European Community (EC) tax on vegetable
oils and fats will be rejected but are leaving nothing to
chance, American Soybean Association (ASA) president-elect
Wayne Bennett said.
    Bennett, who is leading one of three soybean producer
delegations on a lobbying tour of EC capitals, was speaking at
a lunch.
    After meetings at the Economics and Foreign ministries this
morning, he said the Dutch Government had indicated it would
vote against the proposal, as had a number of other countries.
    "Our information suggests we will have the required number
of votes in Brussels to prevent the tax proposal going forward,"
he said.
    "The proposal has been talked of in Brussels for the past 20
years, and dropped every time. What we want now is to kill it
once and for all," Bennett added.
    Backing up the soybean producers' active lobbying, the U.S.
Government has also indicated it will be prepared to retaliate
with penal import taxes if the proposal does get through, he
said.
    The U.S. Government also feels it has a good case to fight
the proposed tax in the General Agreement on Tariffs and Trade
(GATT), a U.S. Embassy spokesman said.
    U.S. Exports of soybeans and products to the EC account for
one-fifth of annual production, and are worth about 2.5 billion
dlrs a year, Bennett said.
    The proposed tax on oils and fats would hit U.S. Producers
badly while at the same time virtually doubling the price of
soyoil in the EC, which would suffer far worse than other
higher-priced oils because of the nature of the proposed tax,
he added.
    The revenue to the EC from the tax would simply be used to
finance the EC's own oilseed subsidy machine, he said.
    "We in the ASA are dedicated free-traders. We helped defeat
the Wine Equity Act two years ago, but we will not stand by and
watch our own farmers suffer from such protectionist EC
measures," Bennett said.
    "The mood in the U.S. Is turning increasingly protectionist,
and the EC's actions are fueling the chances of a trade war,"
he added.


.I 10305
.C
jobs
.W
SWEDISH UNEMPLOYMENT DOWN AS DATA IS REVISED.
    STOCKHOLM, March 16 - A new method of calculating Sweden's
unemployment figures reduced the number of jobless by a sixth,
a spokesman for the Central Bureau of Statistics (SCB) said,
reporting a substantial drop in the past year.
    According to the revised data there were 94,000 jobless in
February representing 2.2 pct of the workforce against 120,000
or 2.8 pct of the workforce in February 1986.
    SCB official Olle Wessberg said the new figures were based
on a more extensive survey of the unemployed which brought
Sweden into line with the practises recommended by the
Geneva-based International Labour Organisation.
    Wessberg said the new method cut the number of unemployed
by about 16 pct. "The way we are now collecting data is far more
accurate and we are asking many more questions to find out
whether the jobless want work, whether they are able to work
and whether they have actually looked for work," he told
Reuters.
    The new method was first used for the January figures,
which showed unemployment dropping to 2.1 pct of the workforce
from 2.7 pct (old style) in December, but Wessberg said the
change had apparently not been noticed by the press.
    Recalculated according to the new method, unemployment in
February 1986 would have stood at 2.2 pct, the SCB said.


.I 10307
.C
money-fx
.W
ECONOMIC SPOTLIGHT - EMS MARKS EIGHTH BIRTHDAY.
    By Tony Carritt, Reuters
    BRUSSELS, March 13 - The European Monetary System marks its
eighth anniversary still vulnerable to turmoil in world money
markets despite creating an island of currency rate stability
in Europe, economists say. But many economists say the system,
which holds eight European Community currencies within narrow
fluctuation bands, remains in its infancy.
    Its new currency, the European Currency Unit (Ecu), has
been a runaway success with investors and borrowers alike
seeking an alternative to the volatile dollar.
    And on Wednesday, the long term vision of the Ecu as
Europe's common currency took a step nearer to becoming reality
when Belgium minted the world's first Ecu coin.
    But economists say members such as West Germany have so far
blocked a second stage of development envisaged by the system's
founding fathers, ex-West German Chancellor Helmut Schmidt and
former French President Valery Giscard d'Estaing.
    Under this phase, originally due to have started two years
after the EMS was set up, decision-making was to have been
transferred from national governments and central banks to an
autonomous European Monetary Fund.
    But members have jealously guarded their sovereignty in
economic and monetary matters. "The basic problem of the EMS is
that governments are not prepared to make the quantum leap to a
situation where certain decisions are taken in common," said one
economist who has closely watched the system's development.
    The result is that the EC is often divided over policy on
third currencies, accentuating what the economists say is the
system's greatest weakness, its vulnerability to a weak dollar.
    Over the past 18 months, as the U.S. Dollar plunged and
investors moved into strong currencies, the resulting sharp
rise of the West German mark severely strained the system.
    Another frustration has been Britain's failure to lend the
EMS political support by keeping the pound, still a major world
currency, outside the system.
    No change in the British government's attitude is expected
before the country's next general elections, due by mid-1988.
    Meanwhile, the system's last realignment, the 11th since it
was set up, prompted European finance ministers to ask the EC's
highly-secretive Monetary Committee and Committee of Central
Bank Governors to come up with suggestions for reinforcing it.
    Their ideas are due to be unveiled when finance ministers
hold an informal meeting in Belgium early next month.
    But economists said the proposals are unlikely to involve
more than tinkering with technical details. They are sceptical
about the chances for any fundamental change.
    "Technical measures won't be enough to protect the EMS
against external factors such as dollar weakness. For that we
must take the step forward to the institutional level," said Leo
de Corel of Kredietbank's economic research department.
    Economists say the system's fortunes now will depend
largely on the success of an agreement last month among major
industrial nations to stabilise exchange rates. If the dollar
resumes its slide the EMS could be in for more turbulence, they
predict.


.I 10309
.C
acq
.W
INTERMAGNETICS GENERAL <INMA> COMPLETES BUY.
    GUILDERLAND, N.Y., March 16 - Intermagnetics General Corp
said it completed the purchase of the advanced products
department of Air Products and Chemicals Inc <APD>.
    Terms were not disclosed.
    The department, which makes cryogenic equipment, will
continue operating at its present location in Allentown, Pa.,
the company said. It will market its products as APD Cryogenics
Inc.


.I 10311
.C
acq
.W
ITALY'S FERRUZZI TAKES OVER SPANISH MILL.
    MADRID, March 16 - Italy's Ferruzzi SpA has taken a 67 pct
stake in Spanish sunflower seed and cotton mill Cooperativa
Agricola del Guadalete SA (GUADALCO), sources at GUADALCO said.
    The Italian firm's Spanish subsidiary, Ferruzzi Espana SA,
took the majority equity stake, with the remaining 33 pct
retained by GUADALCO.
    Ferruzzi plans to set up a sugar division and import some
30,000 tonnes of industrial sugar from its French factories in
its first year of operation.
    GUADALCO has a processing capacity of 250 tonnes a day of
sunflower seeds and 12,000 tonnes a day of raw cotton.


.I 10313
.C
livestock
.W
CCC ACCEPTS BID FOR DAIRY CATTLE TO KUWAIT.
    WASHINGTON, March 16 - The Commodity Credit Corporation
(CCC) has accepted a bid for an export bonus to cover the sale
of 380 head of dairy cattle to Kuwait, the U.S. Agriculture
Department said.
    The dairy cattle are for shipment on or before May 31,
1987, it said.
    The bonus of 1,465.00 dlrs per head was made to American
Marketing Services, Inc, and will be paid in the form of
commodities from the CCC inventory, it said.
    An additional 761 head of dairy cattle are still available
to Gulf countries (kuwait, Bahrain, Oman, Qatar and the United
Arab Emirates under the Export Enhancement Program initiative
announced October 30, 1986, it said.


.I 10315
.C
earn
.W
<AMERICAN HOECHST CORP> YEAR NET.
    SOMERVILLE, N.J., March 16 -
    Net 38 mln vs 5.7 mln
    Revs 1.71 billion vs 1.69 billion
    NOTE: Fully owned subsidiary of Hoechst AG.


.I 10317
.C
money-fx;interest;
.W
FED EXPECTED TO SET CUSTOMER REPURCHASES.
    NEW YORK, March 16 - The Federal Reserve is expected to
intervene in the government securities market to add reserves
via two to 2.5 billion dlrs of customer repurchase agreements,
economists said.
    Economists said the Fed will inject temporary reserves
indirectly to offset pressure on the Federal funds rate
associated with quarterly corporate tax payments to the
Treasury department.
    Fed funds opened at 6-1/4 pct and remained at that level
late this morning. Friday funds averaged 6.05 pct.


.I 10320
.C
earn
.W
LEVITT CORP <LVT> 4TH QTR NET.
    BOCA RATON, March 16 -
    Oper shr 42 cts vs 11 cts
    Oper net 1,433,000 vs 382,000
    Revs 38.6 mln vs 20.1 mln
    Year
    Oper shr 60 cts vs 49 cts
    Oper net 2,033,000 vs 1,682,000
    Revs 90.4 mln vs 73.0 mln
    NOTE: 1985 4th qtr and year excludes extraordinary credit
of 349,000 dlrs or 11 cts per share.


.I 10321
.C
grain
.W
EEP SHOULD BE USED TACTICALLY, YEUTTER SAYS.
    WASHINGTON, March 16 - U.S. Trade Representative Clayton
Yeutter said the Export Enhancement Program, EEP, should be
used as a "tactical tool" and not as a general policy.
    Yeutter made the comment in response to a question whether
the U.S. should expand the EEP to cover grain sales to the
Soviet Union.
    He did not comment directly on the Soviet question,
replying that any decision would be made at the highest levels
of the Reagan administration, and "I don't want to preempt that."
    Yeutter told the National Grain and Feed Association EEP
should continue to be used as a tactical tool against the
European Community but not as a general policy. He said
selective EEP use has been successful in pressuring the E.C.


.I 10322
.C
acq
.W
NATIONAL PIZZA <PIZA> CORRECTS FIGURE.
    PITTSBURG, Kan., March 16 - National Pizza Co said the
seven Straw Hat Piza restaurants in Los Angeles and
Bakersfield, Calif., that it announced plans to buy Friday are
expected to generate annual sales of about 3,800,000 dlrs, not
the eight mln dlrs the company originally announced.
    The company said it will convert the restaurants to Pizza
Hut units.  Closing is expected around March 31.


.I 10323
.C
earn
.W
TBG HOLDINGS N.V. <TGBN.AS> 1986 YEAR NET.
    AMSTELVEEN, Netherlands, March 16 -
    Net profit 34 mln dlrs vs 43 mln dlrs.
    Turnover 1.82 billion dlrs vs 1.83 billion.
    NOTE: Company lowered to nine pct from 13.5 pct interest
rate on outstanding subordinated loan for period august 1,
1987, to July 31, 1988.
    TBG, formerly known as <Thyssen-Bornemisza Group>, reports
in dlrs since December 1, 1984, the start of the 1985 financial
year.
    TBG said the decline in profits was mainly caused by losses
in container rental activities.


.I 10324
.C
acq
.W
AVAQ INTERNATIONAL TO SEEK COMMITMENT ON DEAL.
    NEW YORK, March 16 - <AVAQ International Inc> said it
intends to require Gates Learjet Corp <GLJ> to honor its
agreement to sell its shares to the company.
    AVAQ said it made the statement in response to an offer by
<Interconnect Capital Corp> for all of Gates Learjet shares
after what it believed to be an agreement by Gates to accept
its offer.
    AVAQ said it offered, pusuant to Gates' guidelines, six
dlrs per share, plus the purchase of Gates Corp's promisary
note for 23 mln dlrs.
    Interconnect said it offered 7.07 dlrs per share, plus the
repurchase of the loan for 13 mlns, for an aggregate price in
the 95 mln dlr range. Interconnect said it made the offer to
the board of directors of Gates Learjet on March 9.
    AVAQ said Gates Corp and Gates Learjet approved its offer
Feb 26.


.I 10325
.C
money-fx
.W
SPAIN TO RELAX EXCHANGE CONTROLS.
    MADRID, March 16 - The Bank of Spain is relaxing exchange
controls to help put Spanish banks on an equal footing with
European Community competitors by the 1993 deadline for the
ending of restrictions, a central bank spokesman said.
    "The measures to take effect by June were designed to lift
restrictions on foreign currency operations, in line with
deregulation in the banking industry," he said in a telephone
interview.
    The spokesman said the relaxation of exchange controls
highlighted a broader package of reforms announced last Friday.
    The central bank said in a statement the measures included
increased provisions for high-risk borrowers and a provision
for future pension fund obligations.
    It said the measures were the latest steps to deregulate
Spain's financial sector, a move triggered by entry into the
Community last year.
    Spain has five years to complete bank deregulation, a
process that began in 1978 when the government allowed foreign
banks to open branches.
    Since then 39 foreign banks have come into the market and
they now control about 15 pct of the system's lending assets.
    Residents in Spain can now borrow freely in foreign
currency up to the equivalent of 1.5 billion pesetas against a
previous ceiling of 750 mln pesetas.
    The 750 mln peseta limit was set last March. Between that
date and the end of last year some 430 mln dlrs flowed into the
country on new foreign currency loans.
    The central bank spokesman said operations over 1.5 billion
pesetas were technically subject to authorisation, but would be
given clearance if the government failed to act in 15 days.
    Spanish banks will also be allowed to expand their foreign
currency funding, formerly obtainable through deposits, by
issuing certificates of deposit, bonds and commercial paper.
    They can also employ these funds to invest in foreign
issues, while before they had to be converted into deposits.
    Foreign exchange operations can be in mixed currencies,
instead of having to borrow and lend in the same currency.
    The central bank has also lifted the restriction on the
amount of foreign exchange loans, which previously were limited
to three times a bank's capital equity.
    The latest deregulation measures were welcomed by most
bankers, in contrast to rulings issued earlier this month which
imposed a 19 pct reserve requirement on new convertible peseta
funds held by banks and freed short term deposit rates.
    The reserve requirement, which was already in place on
normal peseta deposits, was intended to curb short-term foreign
speculative capital which is entering the country and
threatening the government's money supply growth target.
    A foreign banker said high reserve requirements, which now
account for about 30 pct of deposits, placed Spanish banks at a
disadvantage with European competitors.
    The government reduced fixed asset investment requirements
to 11 pct from 23 pct to help offset the negative impact of
interest rate deregulation. "The real problem is the freeing of
interest rates," the banker said. "This is going to take a big
bite out of profits."
    The ruling lifted a six pct ceiling on interest rates paid
on deposits of up to 180 days.
    The chairman of one of Spain's leading banks said the
measure was expected to bring a 20 pct drop in profits this
year.


.I 10327
.C
earn
.W
STANDARD PRODUCTS CO <STD> RAISES QUARTERLY.
    CLEVELAND, March 16 -
    Qtly div 20 cts vs 16 cts prior
    Pay April 24
    Record April 10


.I 10328
.C
earn
.W
AARON SPELLING PRODUCTIONS INC <SP> 2ND QTR NET.
    LOS ANGELES, March 16 - Jan 31 end
    Shr 31 cts vs 44 cts
    Net 5,705,000 vs 8,101,000
    Revs 50.6 mln vs 67.2 mln
    1st half
    Shr 63 cts vs 71 cts
    Net 11.6 mln vs 13.2 mln
    Revs 80.9 mln vs 105.2 mln
    NOTE: Current half net includes 750,000 dlr charge from
reorganization.


.I 10329
.C
earn
.W
COOPER LASERSONICS INC <ZAPS> 1ST QTR LOSS.
    PALO ALTO, Calif., March 16 - Period ended January 31.
    Shr loss 22 cts vs profit one ct
    Net loss 4,700,000 vs profit 150,000
    Sales 15.0 mln vs 16.7 mln
    Avg shrs 21,538,000 vs 19,259,000
    Note: Prior qtr figures include gain of 1.1 mln dlrs, or
six cts per share, from discontinued operations.


.I 10330
.C
earn
.W
DIVERSIFIED INDUSTRIES <DEI> 1ST QTR OPER NET.
    ST. LOUIS, March 16 - Period ended Jan 31
    Oper shr two cts vs eight cts
    Oper net 96,000 vs 449,000
    Sales 37.6 mln vs 35.8 mln
    Avg shrs 5,317,900 vs 5,689,277
    NOTE: Full name is Diversified Industries Inc
    Earnings exclude gains from utilization of tax loss
carryforwards of 62,000 dlrs, or one ct a share vs 358,000
dlrs, or six cts a share


.I 10334
.C
pet-chem
.W
HOECHST CELANESE SETS EXPANSION PROGRAM.
    NEW YORK, March 16 - Hoechst AG's <HFAG.F> U.S. unit,
Hoechst Celanese Corp, said it has begun projects that will
cost more than 150 mln dlrs.
    The unit was formed last month when Hoechst completed the
acquisition of Celanese for 2.84 billion dlrs.
    The company said it will expand its Sanwet super absorbent
polymers unit and its acrylic acid facility. It also said it
plans an acetaminophen production plant at Bishop, Texas.



.I 10335
.C
earn
.W
GOLDEN NUGGET INC <GNG> 4TH QTR LOSS.
    LAS VEGAS, March 16 -
    Oper shr loss 20 cts vs loss 19 cts
    Oper net loss 7,001,000 vs loss 6,761,000
    Revs 93.0 mln vs 90.6 mln
    Avg shrs 35.2 mln vs 34.8 mln
    Year
    Oper shr profit 10 cts vs profit 65 cts
    Oper net profit 3,419,000 vs profit 22.6 mln
    Revs 381.7 mln vs 385.0 mln
    Avg shrs 33.8 mln vs 34.9 mln
    NOTE: Net excludes debt retirement gain 2,001,000 dlrs vs
loss 316,000 dlrs in quarter and losses 15.9 mln dlrs vs
1,714,000 dlrs in year.
    1986 net includes tax crdits of 2,942,000 dlrs in quarter
and 2,729,000 dlrs in year.


.I 10336
.C
earn
.W
OPPENHEIMER INDUSTRIES <OPP> SEES YEAR LOSS.
    KANSAS CITY, March 16 - Oppenheimer Industries Inc said it
expects to report a loss for the year ended January 31 of about
980,000 dlrs, compared with a profit of 211,074 dlrs a year
before.
    The company blamed the loss on the continuing depression in
agriculture, the discontinuance of several programs due to the
passage if the 1986 tax bill and the failure to close the sale
of four ranches in the California Carrizo Plains during the
year as expected.
    The company said the prospective purchaser forfieted a
500,000 dlr deposit  It said it is in talks on a new contract.


.I 10339
.C
earn
.W
LUBY'S CAFETERIAS INC <LUB> 2ND QTR FEB 28 NET.
    SAN ANTONIO, Texas, March 16 -
    Shr 31 cts vs 26 cts
    Net 5,645,000 vs 4,737,000
    Sales 55.2 mln vs 50.6 mln
    1st half
    Shr 60 cts vs 53 cts
    Net 10.9 mln vs 9,659,000
    Sales 110.4 mln vs 102.2 mln
    NOTE: Current year net both periods includes 474,000 dlr
gain from land sale.
    Share adjusted for three-for-two split in August 1986.


.I 10342
.C
earn
.W
TESCO FORECASTS PROFITS RISE THIS YEAR.
    LONDON, March 16 - Tesco Plc <TSCO.L> said in a statement
it expects pre-tax profits of 166 mln stg for the year ending
February 28, 1987, before nine mln stg of net property profits.
This compares with 122.9 mln stg pretax profits and a net 8.1
mln on property sales the previous year. It said the forecast
was in its formal offer document sent to <Hillards Plc>
shareholders today.
    On March 10 Tesco launched a 151.4 mln stg bid for
Hillards. The offer, of 13 new Tesco ordinary shares for every
20 Hillards ordinary shares, valued each Hillards ordinary
share at 305.5p.


.I 10344
.C
earn
.W
BUSINESS COMPUTER <BCSI> HAD 4TH QUARTER PROFIT.
    MIAMI, March 16 - Business Computer Solutions Inc said it
expects to report a profit for the fourth quarter ended
February 28 -- its first quarterly profit ever -- of about
175,000 dlrs on revenues of about 750,000 dlrs.
    A year before, it lost 217,852 dlrs on sales of 469,274
dlrs.  The company attributed the improved results to increased
purchases of its ZFOUR language and development environment for
computer software.
    Business Computer said it expects to report a full-year
loss of about 500,000 dlrs on sales of about 2,100,000 dlrs.
Last year it lost 1,079,000 dlrs on revenues of 720,000 dlrs.


.I 10347
.C
money-fx
.W
******FED SAYS IT SETS THREE-DAY SYSTEM REPURCHASE AGREEMENTS.
Blah blah blah.

.I 10348
.C
acq;copper;
.W
MIM TO ACQUIRE STAKE IN GERMAN COPPER PRODUCER.
    FRANKFURT, March 16 - Mount Isa Mines Holding Ltd plans to
acquire a 30 pct stake in Europe's largest primary copper
producer, Norddeutsche Affinerie AG, a spokesman for
Metallgesellschaft AG said.
    MIM intends to take Preussag AG's total 20 pct share in the
copper producer in exchange for some three pct of MIM's share
capital. MIM will also take another 10 pct now held by Degussa
AG, reducing Degussa's share to 30 pct from 40.
Metallgesellschaft's share will remain at 40 pct.
    The move is subject to approval of the federal cartel
office and supervisory boards of the companies involved.


.I 10350
.C
earn
.W
J.W. MAYS INC <MAYS> 2ND QTR JAN 31 NET.
    BROOKLYN, N.Y., March 16 -
    Shr 2.27 dlrs vs 74 cts
    Net 4,945,989 vs 1,612,624
    Revs 28.2 mln vs 27.9 mln
    Six mths
    Shr 1.57 dlrs vs three cts
    Net 3,417,659 vs 73,614
    Revs 47.0 mln vs 46.8 mln
    NOTE: Current periods include pretax gain of 4.3 mln dlrs
from sale of leasehold of Glen Oaks store in Queens, N.Y. and
gain of 1.9 mln dlrs from benefit of tax loss carryforwards.
    Year-ago six mths includes gain of 95,988 dlrs from refund
of prior year's real estate taxes.


.I 10351
.C
earn
.W
CIRCUS CIRCUS ENTERPRISES <CIR> 4TH QTR NET.
    LAS VEGAS, Nev., March 16 -
    Oper shr 16 cts vs 14 cts
    Oper net 5,818,000 vs 5,284,000
    Revs 88.2 mln vs 69.7 mln
    Year
    Oper shr 96 cts vs one dlr
    Oper net 36,101,000 vs 37,375,000
    Revs 374.0 mln vs 307.0 mln
    Note: Current qtr and year figures exclude extraordinary
losses on early debt retirement of 1.7 mln dlrs, or five cts
per share and 7.9 mln dlrs, or 21 cts per share, respectively.
    Full name Circus Circus Enterprises Inc.


.I 10352
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA THREE-DAY REPURCHASES.
    NEW YORK, March 16 - The Federal Reserve entered the U.S.
Government securities market to arrange three-day System
repurchase agreements, a Fed spokesman said.
    Dealers said that Federal funds were trading at 6-1/4 pct
when the Fed began its temporary and direct supply of reserves
to the banking system.


.I 10353
.C
earn
.W
NATIONAL FUEL GAS CO <NFG> SETS MAIL DATE.
    NEW YORK, March 16 - National Fuel Gas Co said its mail
date for its previously-announced two-for-one stock split is
June 19, 1987.
    The company, which announced the split last week, had said
the record date for the split is May 29, 1987.


.I 10354
.C
acq
.W
COMTECH <CMTL> TO SELL PREMIER MICROWAVE.
    HAUPAUGE, N.Y., March 16 - Comtech Inc said it agreed in
principle to sell 95 pct of its outstanding shares in Premier
Microwave Corp for seven mln dlrs.
    It said the buyers include an investment group composed of
the unit's management.
    The company said it expects the sale to close in the next
few weeks. Proceeds will be used to reduce debt.


.I 10355
.C
acq
.W
INVESTMENT FIRMS HAVE 5.9 PCT OF PUROLATOR <PCC>.
    WASHINGTON, March 16 - A group of affiliated New York-base
investment firms and funds told the Securities and Exchange
Commission they have acquired 453,300 shares of Purolator
Courier Corp, or 5.9 pct of the total outstanding.
    The group, led by Mutual Shares Corp, said it bought the
stock for investment purposes.
    It also said it is studying the 35 dlr a share leveraged
buyout offer made by Purolator managers and E.F. Hutton LBO Inc
but has not decided whether it will tender its stock in the
offer. The group said it has held talks with the Hutton LBO
group before and may do so again.


.I 10356
.C
earn
.W
TOFUTTI BRANDS <TOF> SEES PROFIT FOR NEW YEAR.
    RAHWAY, N.J., March 16 - Tofutti Brands Inc said it is
changing its fiscal year to a calendar year from a year ending
July 31, and it expects to be profitable on higher sales in
1987.
    The company lost 658,000 dlrs on sales of 11.6 mln dlrs in
the year ended July 31.  A company spokesman said Tofutti will
be reporting earnings for the last five months of calendar 1986
by the end of March and will then report calendar first quarter
results.


.I 10357
.C
earn
.W
DIGITECH INC <DGTC> 1ST QTR JAN 31 NET.
    ST. LOUIS, March 16 -
    Shr two cts vs eight cts
    Net 270,000 vs 1,212,000
    Revs 1,858,000 vs 1,420,000
    Avg shrs 16,817,618 vs 12,507,671


.I 10358
.C
livestock;carcass;
.W
UNION VOTES TO STRIKE DAKOTA CITY IBP PLANT.
    Chicago, March 16 - Members of the United Food and
Commercial Workers union, UFCW, local 222 voted Sunday to go on
strike against Iowa Beef Processors Inc Dakota City, Nebraska,
plant, effective Tuesday.
    The company submitted their latest offer to the union at
the same time announcing that they would end the lockout as of
tomorrow that started December 14.
    Members unanimously rejected the latest company offer that
was submitted to the union late last week. An overwhelming
majority of the approximately 2,500 members attending the
meeting then voted to go on strike, UFCW union spokesman Allen
Zack said.
    Zack said the company's offer for a cut in wages was
unacceptable and said IBP was refusing to bargain in good
faith.
    IBP's latest offer included wage cuts of 60 cents an hour
for slaughter operations and a 45 cents an hour cut in pay for
processing workers. The cut follows the 1.07 dlr cut in pay
workers received in 1982 and the wage freeze that has lasted
since then, Zack said.
    The offer also eliminated overtime after eight hours
following the normal 40 hour work week, he added.


.I 10360
.C
gnp
.W
BELGIUM REVISES DOWN 1987 GNP GROWTH FORECASTS.
    BRUSSELS, March 16 - The Belgian government has lowered its
forecast for the nominal increase in gross national product in
1987 to 3.5 pct from an originally forecast 3.9 pct, Prime
Minister Wilfried Martens said in a statement to parliament.
    He said this revision, which brings government forecasts
more closely into line with those by private institutions,
takes account of an anticipated slowdown in the world economy
and international trade.
    But he said the impact on the Belgian economy will be
limited due to recent agreements on wages and working
conditions agreed by employers and unions.
    Martens did not say how much the government expected GNP to
grow in volume terms.
    However, last month the government's Planning Bureau said
it had revised its 1987 forecast for this to 0.9 pct from 2.0
pct.
    In 1986, Belgium's gross national product rose 2.15 pct in
volume terms against a 5.9 pct nominal rise.


.I 10364
.C
earn
.W
CABOT MEDICAL CORP <CBOT> 1ST QTR JAN 31 NET.
    LANGHORNE, Penn., March 16 -
    Shr four cts vs two cts
    Net 240,902 vs 106,054
    Revs 3,408,481 vs 2,566,769


.I 10365
.C
earn
.W
AMERIHEALTH INC <AHTH> 4TH QTR LOSS.
    ATLANTA, March 16 -
    Oper shr loss one ct vs loss 11 cts
    Oper net profit 89,000 vs loss 323,000
    Revs 9,603,000 vs 6,116,000
    Year
    Oper shr loss six cts vs loss 21 cts
    Oper net profit 158,000 vs loss 629,000
    Revs 34.6 mln vs 22.8 mln
    NOTE: 1986 net excludes tax credits of 170,000 dlrs in
quarter and 321,000 dlrs in year and gains on termination of
pension plan of 82,000 dlrs in quarter and 190,000 dlrs in
year.
    Share after preferred dividends.


.I 10366
.C
gnp
.W
BANKS SEE GERMAN GROWTH OF AT LEAST TWO PCT.
    BONN, March 16 - External risks for the economy have
increased, but growth of two to 2.5 pct this year is still
possible, according to President of the West German Federation
of Banks, Hanns Christian Schroeder-Hohenwarth.
    Schroeder-Hohenwarth told a news conference the further
fall of the dollar since the start of this year and the
revaluation of the mark against European currencies meant West
German exporters were facing a "rough wind."
    However, domestic demand was continuing to rise and private
consumption in particular would support the economy, he said.
He saw good prospects for consumer industries.
    Schroeder-Hohenwarth said economic policy now had to
concentrate on strengthening this domestic growth. In this
context, he welcomed a decision by the government to increase
the scope of tax cuts due in 1988.
    He added, a planned reform of the fiscal system scheduled
for 1990, which was worked out by coalition partners this
month, was an "important step in the right direction."
    The government plans to cut corporation tax to 50 pct from
56 pct. However, Schroeder-Hohenwarth said the decision to cut
the maximum rate of income tax to only 53 pct from 56 pct was
"rather half-hearted."


.I 10367
.C
earn
.W
CAMBRIDGE ANALYTICAL <CAAN> SEES FIRST QTR LOSS.
    BOSTON, March 16 - Cambridge Analytical Associates Inc said
it expects to incur a loss for the first quarter of fiscal 1987
equal to or greater than its loss of 240,697 dlrs for the
fourth quarter ended December 31, 1986.
    Cambridge said it expects revenues for the first quarter to
be approximately the same as those recorded for the fourth
quarter ended December 31, 1986, of 1,025,961 dlrs.
    Cambridge recorded a profit of 2,204 dlrs on revenues of
847,000 dlrs for the first quarter of fiscal 1986, the company
said.
    The company attributed the expected loss to lower than
expected sales from its laboratory and consulting business and
planned major investment in its proprietary treatment
technology.
    The company said winter is traditionally its slowest
season.


.I 10368
.C
acq
.W
SETON <SEL> GETS BUYOUT OFFER FROM CHAIRMAN.
    NEWARK, N.J., March 16 - Seton Co said its board has
received a proposal from chairman and chief executive officer
Philip D. Kaltenbacher to acquire Seton for 15.75 dlrs per
share in cash.
    Seton said the acquisition bid is subject to Kaltenbacher
arranging the necessary financing.  It said he intends to ask
other members of senior management to participate.
    The company said Kaltenbacher owns 30 pct of Seton stock
and other management members another 7.5 pct.
    Seton said it has formed an independent board committee to
consider the offer and has deferred the annual meeting it had
scheduled for March 31.


.I 10369
.C
earn
.W
MRS FIELDS PLANS TO OPEN MORE STORES.
    LONDON, March 16 - U.S. Based speciality food retailer <Mrs
Fields Inc>, which earlier announced pre-tax profits of 17.1
mln dlrs in 1986 against 6.8 mln in 1985, said it plans further
growth this year with the opening of 125 new stores in the U.S.
    The company, which is quoted on London's Unlisted
Securities Market (USM), said it also planned to expand its
outlets internationally.
    However, chairman Randall Fields told a news conference the
company would not move into any new countries during 1987 but
would intensify its efforts where it already had stores.
    During 1986 the company opened 81 new stores, including 76
in the U.S., Two in Australia and one each in Japan, Canada and
the U.K.
    "We intend to open a minimum of five more units in London
for example and it is reasonable that we might open other
stores in other European countries in 1988," Fields said.
    He said the company acquired competitive businesses as a
matter of routine, and might add others in 1987, but declined
to say how much the company planned to spend on them.
    Last year turnover rose by 20.8 pct to 87.1 mln dlrs from
72.6 mln dlrs in 1985.


.I 10371
.C
gnp;trade;
.W
BRAZIL SAYS DEBT CRISIS IS WORLD PROBLEM.
    RIO DE JANEIRO, March 16 - Brazilian Finance Minister
Dilson Funaro said his country's foreign debt crisis could only
be solved by changes in the international financial system.
    Speaking to a business conference he said "It is not Brazil
that has to make adjustments with the IMF (International
Monetary Fund). It is the international financial community
that is taking away resources from the developing countries."
    "The crisis is not in Brazil, a country that has had the
third biggest trade surplus ...In the past two years Brazil had
remitted 24 billion dlrs in debt servicing and received only
two billion in fresh funds," he added.
    Funaro said that during his recent trip to the U.S., Europe
and Japan to explain Brazil's decision last month to suspend
interest payments on 68 billion dlrs of commercial debt, he
stressed the country's commitment to growth.
    "We need to and will make the effort (to solve the debt
problem) but we cannot make an effort that means we stop
growing," he said, adding that political and not purely
commercial solutions were needed to the debt crisis.
    Brazil, whose 108 billion dlr foreign debt is the largest
in the developing world, has been under pressure from official
and private creditors to work out an economic adjustment
program with the IMF to combat rocketing inflation and foreign
payments problems.
    President Jose Sarney's government has repeatedly refused
to approach the Fund, arguing that an IMF programme would lead
to recession. Funaro said that in his talks with creditors he
had tried to restore credibility in the country in the hope of
finding a lasting solution to the debt problem.
    "We are negotiating so that the debt question should not be
one of continuous crisis."
    To sustain internal growth Brazil would have to import more
machinery and equipment this year and export fewer raw
materials. The country was thus targetting a fall in this
year's trade surplus to 8.0 billion dlrs from 1986's 9.5
billion.
    Domestically, Funaro said economies had led to a reduction
in the public sector deficit to 2.7 pct of gross domestic
product in 1986, the lowest for many years and that this should
fall to 1.5 pct this year.


.I 10373
.C
cpu
.W
******U.S. INDUSTRIAL CAPACITY USE RATE ROSE TO 79.8 PCT IN FEB FROM 79.6 PCT IN JAN.
Blah blah blah.

.I 10374
.C
earn
.W
BIOTECHNOLOGY DEVELOPMENT <BIOD> 4TH QTR LOSS.
    NEWTON, Mass., March 16 -
    Shr loss five cts vs loss 17 cts
    Net loss 154,654 vs loss 419,606
    Revs 517,699 vs 374,108
    Year
    Shr loss 28 cts vs loss 56 cts
    Net loss 821,979 vs loss 1,368,591
    Revs 1,650,657 vs 1,285,473


.I 10377
.C
earn
.W
HECHINGER CO <HECH> 4TH QTR NET.
    LANDOVER, Md., March 16 -
    Shr primary 28 cts vs 22 cts
    Shr diluted 26 cts vs 21 cts
    Net 8,637,000 vs 6,577,000
    Sales 140.3 mln vs 116.8 mln
    Year
    Shr primary 92 cts vs 77 cts
    Shr diluted 88 cts vs 75 cts
    Net 28.3 mln vs 23.1 mln
    Sales 588.4 mln vs 479 mln


.I 10378
.C
acq
.W
METEX <MTX> CHAIRMAN SELLS SHARES.
    EDISON, N.J., March 16 - Metex Corp said its chairman and
chief executive officer Alan Cohen sold 78,375 shares of Metex
common stock to Metropolitan Consolidated Industries Inc
<MONY>.
    The company said the selling price was 11.25 dlrs per share
with an option for Metropolitan Consolidated Industries to
purchase up to 42,750 shares more at the same price.
    Metex also said Mason Carter was elected president and
chief operating officer of the company. Carter joined Metex in
1982, where he was formerly its executive vice president.
    In addition, Attilio Petrocelli, president of Metropolitan,
was named to fill a vacancy on the Metex board of directors,
the company said.
    Metropolitan owns 21 pct of Metex common stock, the company
said.


.I 10380
.C
wheat;grain;barley;corn;cotton;sorghum;
.W
AROUND 3.5 MLN ACRES SAID TO BE IDLED BY 0/92.
    WASHINGTON, March 16 - A 0/92 program would have very
little impact on U.S. acreage, prompting farmers to idle only
an additional 3.5 mln acres of cropland every year, according
to a report from the Agriculture Department.
    The savings resulting from the additional 3.5 mln acres
idled would be a little over 400 mln dlrs in loan savings, 35
mln dlrs in transportation and storage savings, and 10-20 mln
dlrs per year in deficiency payment savings, the report said.
    The USDA report asssessed the impacts of the proposed 0/92
acreage program for wheat, corn, cotton, sorghum and barley.
Last year, almost 245 mln acres of those crops were harvested.
    "The likelihood that the 0-92 provisiion will cause very
large acreages to be removed from crop production is quite
small," the report said.
    "The returns on typical farms still favor participation in
the usual acreage reduction programs and seeding the permitted
acreage," the USDA report said.
    The 0/92 program, which would allow farmers to forego
planting and still receive 92 pct of their deficiency payment,
would be most used by producers in high production/high risk
areas where cost of production is high, said Keith Collins,
director of USDA's economics analysis staff.
    "In the heart of the corn belt, you would not get that much
participation," Collins said.
    USDA estimated that an additional one mln acres of wheat
would be ildled under 0/92, 1.5 mln acres of corn, 500,000
acres of sorghum and barley and 500,000 acres of cotton.
    Production from these idled acres would be equivalent to 40
mln bushels of wheat, 180 mln bushels of corn, 20 mln bushels
of sorghum, 10 mln bushels of barley, and 500,000 bales of
cotton, the report said.
    "In determining whether to participate, a producer would
need to weigh the expected cash costs of production against the
loan rate ... The risk that market prices may rise above the
expected levels and reduce the deficiency payment also must be
considered," according to the analysis.
    "What you're giving up under 0/92 is the difference between
the loan rate and the cost of production," Collins said.
    For producers with low production costs, that difference is
greater and can be applied to paying variable costs, he said.
Under these cicumstances, farmers would not want to go along
with 0/92. But for high cost producers, 0/92 would be more
attractive.
    Also, as loan rates get lower, Collins said there would be
more incentives to participate in a 0/92 program.
    "I would admit that its impacts would be very marginal at
first, but it is a step towards the goal of separating
production decisions from government payments," Collins said.
    In a speech earlier today before the National Grains and
Feed Association, USDA Secretary Richard Lyng said it is too
late to implement 0/92 for 1987 crops since program signup will
be over by the end of this month.


.I 10382
.C
acq
.W
AMERICAN SECURITY <ASEC> TO RELEASE INFORMATION.
    WASHINGTON, March 16 - American Security Corp said a
release will be forthcoming shortly regarding its pending
merger with Maryland National Corp <MDNT>, approved by its
stockholders October 10.
    American was halted on NASDAQ pending a news announcement.


.I 10383
.C
earn
.W
SVENSKA CELLULOSA AB <SCAB.ST> 1986 YEAR.
    STOCKHOLM, March 16 -
    Group profit after net financial items 1.39 billion crowns
    vs 1.32 billion
    Sales 15.22 billion crowns vs 12.61 billion
    Profit per share 20.50 crowns vs 19.60
    Proposed dividend five crowns vs 4.40


.I 10384
.C
coffee
.W
COLOMBIA COFFEE EXPORTERS BELIEVE IN PRAGMATISM.
    By Gilles Trequesser, Reuters
    BOGOTA, March 16 - Private coffee exporters say Colombia's
more pragmatic coffee marketing policy will ensure that the
country does not suffer excessively from current depressed
prices and erratic market conditions.
    Gilberto Arango, president of the exporters' association,
said in an interview that Colombia, the world's second largest
producer, was in a position to withstand a prolonged absence of
International Coffee Organization (ICO) export quotas.
    "Colombia is one of the countries that will benefit most
from this situation," he said.
    Recent ICO talks in London failed to break a deadlock over
re-introduction of export quotas, suspended in February 1986,
and no date has been set for a new meeting on the issue.
    Arango said that government measures adopted here last
week, including a lower export registration price, indicated a
major change but also disclosed a welcome pragmatism.
    "This is the start of a new era in Colombia because world
market conditions are also new," he said.
    The government lowered local taxes for exporters and said
the export registration price, or reintegro, will be changed
more often in order to closely reflect market trends.
    Arango said an illustration of Colombia's new attitude was
the decision on Friday to open export registrations for an
unlimited amount.
    But he added it did not imply the country would begin heavy
selling of coffee.
    "Our marketing policy is to sell without haste but
consistently. No targets for volume will be set. We will react
to market factors adequately and Colombia has no intention of
giving its coffee away."
    Colombia's past records should be the basis for upcoming
exports, he said.
    "We will certainly not export seven mln (60-kilo) bags but
neither are we going to sell like mad. The trade knows full
well what Colombia's export potential is," he said.
    Colombia, with stockpiles standing at about 10 mln bags,
exported a record 11.5 mln bags in the 1985/86 coffee year
which ended last September, and 11.3 mln in calendar 1986.
    Arango did not want to commit himself on export predictions
but said that output for the 1986/87 coffee year would not
exceed 10.5 mln bags, compared with 12 mln forecast by the
National Coffee Growers' Federation and 12.5 mln by the U.S.
Department of Agriculture, a figure he said was "ridiculous."
    He said ageing plantations and rust, in particular in the
number one producing province of Antioquia, meant output was
likely to fall but that nationwide estimates were rare and
oscillated between 9.5 mln and 11.5 mln bags.
    On the failure of the recent ICO talks, Arango said
Colombia understandably felt frustrated at not having managed
to force a compromise.
    Jorge Cardenas, manager of the national federation and head
of his nation's delegation in London, has blamed the
intransigence of some big countries, without naming them.
    However, Arango, like Colombian Finance Minister Cesar
Gaviria last week, was more explicit and said the United States
would undoubtedly be under great political pressure in coming
weeks to revise its policy.
    "Washington will have to take into account that for many
countries, and some of its allies for instance in Central
America, a sharp fall in coffee export revenue would have
far-reaching political and economic consequences."
    Arango ruled out a fresh Colombian initiative on export
quotas saying producers had now to show a common resolve which
could emerge from continuous contacts.


.I 10385
.C
gnp
.W
BELGIAN GOVERNMENT TO CUT FINANCIAL REQUIREMENT.
     BRUSSELS, March 16 - Belgian Prime Minister Wilfried
Martens announced to Parliament a plan to reduce the 1987
government financing requirement by 20.6 billion francs.
    He said this will enable the requirement to be held to
419.7 billion francs, against the previous government target of
417.8 billion, or eight pct of gross national product.
    Martens said following a lowering of government estimates
of 1987 nominal GNP growth and a re-estimation by government
departments of 1987 spending, the government calculated that
unless action was taken, the requirement would exceed the
target by 22.5 billion francs.
    Martens said the plan involved raising non-fiscal receipts
by 5.8 billion francs and reducing spending by 14.3 billion.
The remaining 0.5 billion francs will be raised through
treasury operations.
    Martens said the money is being found through a series of
small economies and confirmed that it includes the raising of
two billion francs through the sale of part of the government's
50 pct holding in the gas company Distrigaz.
    Last year, the government announced a major program
designed to cut 1987 spending by 195 billion francs.
    The program was designed to get Belgium out of what the
government said was a "snowball effect" under which the
government constantly borrowed more to finance budget deficits
which were due largely to the cost of servicing and repaying
existing debt.
    In 1986, the government financing requirement is estimated
at 561 billion francs or 11.0 pct of GNP.


.I 10386
.C
earn
.W
ROYAL TRUST PLOTS AGGRESSIVE GLOBAL EXPANSION.
    By Peter Cooney, Reuters
    TORONTO, March 16 - <Royal Trustco Ltd>, in a move unique
among Canadian trust companies, is pursuing a bold global
expansion that could someday lift the foreign share of its
yearly earnings to 50 pct, president Michael Cornelissen said.
    First Marathon Securities Ltd financial services analyst
Michael Walsh said Royal Trust's international growth target is
attainable. But it "will be a tremendous achievement because
... they're going to have to build an international earnings
base larger than the earnings of a lot of significant domestic
trust companies," Walsh said.
    Global operations, which made up 22 pct of Royal Trust's
154 mln dlr 1986 net profit, will post 33 pct profit growth
this year against an expected 15 pct jump in total company
profit, Cornelissen told Reuters in an interview.
    He said the foreign share of total profit would rise to 26
pct in 1987 and to 44 pct by 1990.
    Royal Trust, Canada's second largest trust company with
assets of about 19.54 billion Canadian dlrs, has operated
internationally since 1929 when it opened a London bank.
    Its aggressive global strategy began in the 1980s, when
other Canadian trusts, the equivalent of U.S. savings and
loans, were focusing on domestic retail banking.
    The company's overseas ambitions were whetted by heightened
domestic competition and impressive growth at its London bank
operations, which attained full British banking powers in 1980,
Cornelissen said.
    Last year, Royal Trust moved into continental Europe and
Asia with its 239 mln Canadian dlr acquisition of Dow Chemical
Co <DOW>'s Dow Financial Services Corp, which included asset
management, merchant and private banking companies.
    "It was a heaven-sent opportunity," Cornelissen said of the
Dow Financial acquisition. "We achieved in one year what would
otherwise have taken five to 10 years to set up."
    Cornelissen stressed that Royal Trust would shun direct
competition with major global financial institutions in
activities such as international lending and stock brokerage,
in order to exploit "profitable niches" overseas in traditional
trust activities such as asset management, private banking and
advisory services.
    He said that Royal Trust hoped to complete negotiations
"before the end of this month" to sell its London-based Savory
Milln brokerage, acquired in the Dow Financial deal.
    "The international market is so big and we have such a
miniscule share of it that growth opportunities are really
limited only by our energy and our desire to find more
business," he said, adding that in trust-type services, "we
don't think the international markets are well-served."
    Aiding Royal Trust's foreign growth are greater foreign 
investment interest in North America and increased Canadian
investment abroad, Cornelissen said.
    Central to Royal Trust's strategy is Asia, boasting rapid
economic growth and huge pools of Japanese capital, said
Cornelissen, whose company administers assets of 71.85 billion
dlrs, more than any other Canadian trust.
    Citing statistics indicating that by the year 2000, Asia
will contain two-thirds of the world's population and 50 pct of
global productive capacity, Cornelissen said, "We knew we had
to be there." Royal Trust's 14 international locations include
offices in Tokyo, Hong Kong and Singapore. The company also
recently listed its shares on the Tokyo Stock Exchange.
    The Royal Trust president said the company was stressing
growth within its overseas units, adding he did not foresee any
acquisitions in the "immediate future," although "we have our
eyes wide open for the right opportunities."
    Asked about Royal Trust's plans for the U.S., which the
company abandoned with the 1983 sale of its Florida bank units,
Cornelissen said the company faced a trust services market well
covered by hundreds of small regional banks.
    "That doesn't mean to say we shouldn't be in the U.S.,"
said Cornelissen. "That is probably one area that we will
probably do something with in the next five years."
    He said the company would continue to emphasize its home
Canadian market, which Cornelissen and financial services
analysts agreed would remain vital to Royal Trust.
    Proposed government regulations to allow Canadian banks,
trusts, insurance and securities dealers full participation in
one another's actitivies will mean more domestic competition
for Royal Trust, "but not drastically more," Cornelissen said.


.I 10387
.C
earn
.W
SALOMON RAISES CATERPILLAR <CAT> OPINION.
    NEW YORK, March 16 - Salomon Brothers Inc said it raised
its opinion on Caterpillar Inc's stock to an aggressive buy
from a hold because of a brighter earnings outlook for 1988.
    Salomon analyst David Sutliff said in a statement he sees
1988 earnings of 3.35 dlrs a share, up from an earlier forecast
of three dlrs for the year. The outlook for 1987 remains at
2.50 dlrs to three dlrs.
    Caterpillar's stock was down 1/2 points at 46-1/4.
    "Although earnings will be poor for the next two quarters,
we believe that profits could begin to improve in the second
half - perhaps significantly - and should surge sharply through
1988 and 1989," he said.
    Sutliff said improved results should come from four factors
- higher prices, improved market share, reduced costs, and
improved demand.
    The higher prices will stick because its Japanese
competitor, Komatsu, has had to raise prices because of the
increased value of the yen, he said.


.I 10388
.C
earn
.W
ROCKWOOD HOLDING CO <RKWD> 4TH QTR NET.
    SOMERSET, Pa., March 16 -
    Shr profit 78 cts vs loss 38 cts
    Net profit 3,108,000 vs loss 1,510,000
    Revs 35.5 mln vs 47.1 mln
    Year
    Shr profit 2.42 dlrs vs loss 2.01 dlrs
    Net profit 9.6 mln vs loss eight mln
    Revs 157.2 mln vs 182.2 mln
    NOTE: Includes extraordinary gains of 22 cts per share and
36 cts in the fourth quarter and 1986, respectively.


.I 10389
.C
trade
.W
******CANADA PRIME MINISTER SAYS A MAJOR TRADE DEAL EMERGING WITH U.S.
Blah blah blah.

.I 10390
.C
acq
.W
FORUM <FOUR> ENDS BEVERLY <BEV> PURCHASE DEAL.
    INDIANAPOLIS, March 16 - Forum Group Inc said it has
terminated its agreement in principle to buy eight retirement
living centers in six states from Beverly Enterprises due to a
failure to reach a satisfacotry definitive agreement.


.I 10394
.C
gold
.W
SOME 7,000 MINERS GO ON STRIKE IN SOUTH AFRICA.
   JOHANNESBURG, March 16 - Some 7,000 black miners went on
strike at South African gold and coal mines, the National Union
of Mineworkers (NUM) said.
    A NUM spokesman said 6,000 workers began an underground
sit-in at the Grootvlei gold mine, owned by General Union
Mining Corp, to protest the transfer of colleagues to different
jobs.
   He said about 1,000 employees of Anglo American Corp's New
Vaal Colliery also downed tools but the reason for the stoppage
was not immediately clear. Officials of the two companies were
not available for comment and the NUM said it was trying to
start negotiations with management.


.I 10396
.C
earn
.W
FBX CORP <FBXC> YEAR NOV 30 NET.
    HAUPPAUGE, N.Y., March 16 -
    Shr 11 cts vs three cts
    Net 313,000 vs 80,000
    Revs 12.5 mln vs 11.3 mln


.I 10398
.C
cpu
.W
U.S. CAPACITY USE RATE 79.8 PCT IN FEBRUARY.
    WASHINGTON, March 16 - U.S. factories, mines and utilities
operated at 79.8 pct of capacity in February, compared with a
revised 79.6 pct in January and December, the Federal reserve
Board said.
    The Fed previously said the rate was 79.7 pct in January
and 79.5 pct in December.
    A surge in automobile assemblies in February and a gain in
primary metals production helped raise manufacturing to 80.1
pct capacity from 79.9 pct in January.
    Durables manufacturing increased to 76.8 pct last month
from 76.3 pct in January, the Fed said.
    Nondurable manufacturing eased to 85.2 pct of capacity use
from 85.4 pct in January.
    Last month's rate was down from 80.2 pct in February, 1986.
    Fabricated metals increased to 81.4 pct in February from
81.2 pct in January, while motor vehicles and parts jumped to
83.6 pct from 80.0 in January.
    Primary metals rose to 67.7 pct from 66.7 pct in January.
    Petroleum products fell to 92.5 pct in February from 94.5
pct in January.
    Capacity utilization for mining rose to 75.3 pct in
February from 75.1 pct in January, but was below the February
1986 rate of 79.4 pct, the Fed said.
    The use rate for utilities was up to 80.8 pct last month
from 80.4 pct in January.
    Producers of industrial materials operated at 78.9 pct of
capacity, the same as in January and December, but down from
the February 1986 rate of 79.6 pct.
    The Fed said the decline in energy materials use and
durables goods materials were the reason for the decline over
the past year for producers of industrial materials.


.I 10399
.C
livestock;carcass;
.W
UNION VOTES TO STRIKE DAKOTA CITY IBP PLANT.
    Chicago, March 16 - The United Food and Commercial Workers
union, Local 222 said its members voted Sunday to strike the
Iowa Beef Processors Inc Dakota City, Neb., plant, effective
Tuesday.
    The company said it submitted its latest offer to the union
at the same time announcing that on Tuesday it would end a
lockout that started December 14.
    Union members unanimously rejected the latest company offer
that was submitted to the union late last week, UFCW union
spokesman Allen Zack said.


.I 10403
.C
cpi
.W
****** Balladur maintains 1987 2.5 pct inflation target after February 3.4 pct year-on-year.
Blah blah blah.

.I 10404
.C
cocoa
.W
CSCE TO PUT ADDITIONAL MARGIN ON JULY COCOA.
    New York, March 16 - A 250 dlr spot charge will be added to
the New York cocoa futures, July delivery, contract starting
Wednesday, March 18, the Coffee, Sugar and Cocoa Exchange said.
    The March delivery ceases trading March 17, making May and
July the two nearby unlimited positions. Previously, March and
May were unlimited.
    The margin requirement for a May or July position will be
1,000 dlrs--750 dlrs original margin plus 250 dlrs spot fee.


.I 10405
.C
earn
.W
<COOPER CANADA LTD> YEAR NET.
    TORONTO, March 16 -
    Shr 23 cts vs 42 cts
    Net 1,387,000 vs 2,532,000
    Revs 80.5 mln vs 82.6 mln


.I 10407
.C
earn
.W
TAB PRODUCTS CO <TBP> 3RD QTR FEB 28 NET.
    PALO ALTO, Calif., March 16 -
    Shr 27 cts vs 22 cts
    Net 1,866,000 vs 1,476,000
    Revs 33.0 mln vs 30.3 mln
    Nine Mths
    Shr 71 cts vs 57 cts
    Net 4,828,000 vs 3,857,000
    Revs 92.0 mln vs 89.0 mln


.I 10408
.C
earn
.W
MARKEL CORP <MAKL> 4TH QTR NET.
    RICHMOND, Va., March 16 -
    Shr 32 cts vs 18 cts
    Net 1,200,466 vs 545,670
    Revs 8.2 mln vs 6.4 mln
    Year
    Shr 1.52 dlrs vs 27 cts
    Net 4,972,683 vs 1,046,460
    Revs 33.3 mln vs 23 mln


.I 10409
.C
earn
.W
SCIENCE ACCESSORIES CORP <SEAS> 1ST QTR NET.
    SOUTHPORT, Conn., March 16 - Qtr ends Jan 31
    Shr two cts vs two cts
    Net 78,537 vs 72,364
    Revs 626,942 vs 640,030


.I 10411
.C
trade
.W
****** French adjusted February trade deficit 400 mln francs vs January deficit 2.5 billion.
Blah blah blah.

.I 10412
.C
ship
.W
BIFFEX MEMBERS TO BALLOT ON MERGER.
    LONDON, March 16 - Members of the Baltic International
Freight Futures Exchange (BIFFEX) are to be balloted at the end
of this week on whether it will merge with the London Commodity
Exchange or come under a new umbrella of Baltic futures
exchanges, a BIFFEX official said.
    The final decision will be left with the BIFFEX board,
which will meet at the end of this month, he said.
    Last week three exchanges currently trading on the Baltic
Exchange, the London Potato Futures Association, the GAFTA Soya
Bean Meal Futures Association and the London Meat Futures
Exchange, instructed legal advisers to implement a merger.


.I 10413
.C
earn
.W
MACHINE TECHNOLOGY <MTEC> SEES 2ND QTR LOSS.
    PARSIPPANY, N.J., March 16 - Machine Technology Inc said it
expects to report a second quarter loss of 13 to 17 cts per
share on sales of about 4,400,000 dlrs.
    A year earlier, it lost 139,000 dlrs or three cts per share
on sales of 4,271,000 dlrs.
    The company said it booked over six mln dlrs in the quarter
and its backlog has risen 35 pct since the end of its fiscal
year, leading it to expect improved results in the second half.


.I 10414
.C
earn
.W
DOCUGRAPHIX INC <DOCX> 3RD QTR JAN 31 LOSS.
    CUPERTINO, Calif., March 16 -
    Shr loss six cts vs loss 18 cts
    Net loss 31,896 vs loss 753,518
    Revs 840,075 vs 716,361
    Avg shrs 5.45 mln vs 4.17 mln
    Nine mths
    Shr loss 25 cts vs loss 55 cts
    Net loss 1,271,972 vs loss 2,115,662
    Revs 2,071,676 vs 1,933,562
    Avg shrs 5.02 mln vs 3.85 mln


.I 10415
.C
earn
.W
NBD BANCORP <NBD> REGULAR DIVIDEND SET.
    DETROIT, March 16 -
    Qtly div 30 cts vs 30 cts previously
    Pay May 11
    Record April Nine


.I 10418
.C
acq
.W
TRIANGLE MICROWAVE <TRMW> IN TALKS ON BUYOUT.
    EAST HANOVER, N.J., March 16 - Triangle Microwave Inc said
it is involved in talks on its possible purchase by a
"substantial U.S. company" it did not identify.
    Triangle said no agreement has yet been reached and there
can be no assurance that one will be reached. Any acquisitioon
would be subject to approval by its shareholders and to
regulatory filings, it said.
    Triangle Microwave makes microwave system components and
had earnings for the first half ended January 31 of 1,055,000
dlrs on sales of 7,292,000 dlrs, up from earnings of 763,000
dlrs on sales of 6,034,000 dlrs a year before.


.I 10419
.C
veg-oil
.W
YEUTTER REPEATS RETALIATION THREAT ON EC OIL TAX.
    WASHINGTON, March 16 - U.S. Trade Representative Clayton
Yeutter said the United States will retaliate if the European
Community adopts a proposed tax on vegetable oils, but he did
not say what EC products would be singled-out for reprisal.
    Speaking to the National Grain and Feed Association (NGFA)
convention here, Yeutter said he is "cautiously optimistic" the
controversial oils tax proposal will be rejected by the EC
Council of Ministers.
    Yeutter said the proposed tax is a "flagrant violation of
the spirit of GATT" because it would imperil the zero binding
duty on U.S. exports of soybeans to Europe.
    He said the Reagan administration has yet to decide on a
retaliation list. The administration would not reveal a
retaliation list unless the EC approved the proposal, he said.


.I 10420
.C
trade
.W
CANADA'S MULRONEY SAYS U.S. TRADE DEAL NEARS.
    OTTAWA, March 16 - Prime Minister Brian Mulroney said
"significant progress" was being made in trade talks with the
United States and a profile of a major deal was emerging.
    Opening a debate on free trade in the House of Commons,
Mulroney said an accord would create thousands of jobs in
Canada and bring greater economic prosperity to both countries.
    Mulroney, who offered few new details of the talks, said
that while the negotiations were risky and difficult, "a
profile of a major trade deal is now emerging."
  In a 50-minute address, Mulroney made an often passionate
defense of the initiative that he said would give poorer areas
of the country a major economic boost.
    "Because of our trading patterns over a period of decades,
we are in the process of building two Canadas -- one that is
rich and promising, one that is under-developed and
under-employed," said Mulroney.
    "What we want is to make sure Newfoundlanders and British
Columbians and Albertans and others, that they get their
chance. They must be given the opportunity to trade their way
to prosperity."
    Few detials have been released on the trade talks which
were launched nearly two years ago between the two nations that
are each others most important trading partners.
    Recent published reports in Canada, quoting senior trade
sources, said the countries were close to reaching a trade deal
and it will involve eliminating border trariffs and many
non-tariff barriers over the next 10 to 12 years.
    It has been reported a key stumbling block in the talks is
a Canadian proposal to find a new way to settle trade disputes,
something that would give Canada protection from Washington's
tough trade remedy laws.
    But Mulroney, sharply critical of protectionist sentiment
in the U.S, said Canada was a "fair trader" and denied the
government was pursuing the deal to win unfair access to the
American market.
    He said a trade deal must bring benefits to both sides.
    "We recognize a good deal must be a fair deal, one that is
fair to both sides," Mulroney said.


.I 10421
.C
trade
.W
FRANCE REDUCES TRADE DEFICIT IN FEBRUARY.
    PARIS, March 16 - France posted a seasonally adjusted trade
deficit of 400 mln francs in February after a 2.5 billion franc
deficit in January, the Finance Ministry said.
    For the first two months of this year the trade deficit, on
a seasonally adjusted basis, was 2.9 billion francs.
    Unadjusted, the February deficit was 2.4 billion francs and
the two-month cumulative deficit 8.1 billion, the ministry said
in a statement.
    The Ministry said February exports totalled 73.8 billion
francs, an 8.9 pct increase on January, while imports totalled
74.3 billion francs, an increase of 5.8 pct.
    Farm and food trade showed a two billion franc surplus
after a surplus of 2.4 billion in January.
    The energy deficit was reduced to 6.5 billion francs from
eight billion in January, while industrial trade showed a
surplus of 1.4 billion francs against only 800 mln francs in
January.


.I 10424
.C
earn
.W
NCR <NCR> SEES GOOD CHANCE FOR RECORD YEAR NET.
    BOSTON, March 16 - NCR Corp is very optimistic that it will
post record revenues and profits for 1987, Charles E. Exley Jr,
chairman and president, said.
    "Much of our considerable optimism about the future is
based on the strength of a continuing flow of new products,"
Exley told a meeting of securities analysts. "Our current
position is the strongest in modern NCR history with
new-generation offerings deliverable in every major category
this year."
    For 1986, NCR's earnings rose nine pct, to 3.42 dlrs a
share, on sales that increased 13 pct, to 4.9 billion dlrs.
    During the balance of 1987, Exley said NCR will pay close
attention to increasing its penetration of major accounts,
expanding its third-party distribution channels and continuing
its introduction of new products.
    "In 1986, new products introduced within the proceding 36
months accounted for more than 65 pct of our major equipment
order activity," he said.
    "At the end of two months," he added," I can say we are off
to a good start" for 1987.


.I 10429
.C
acq
.W
EQUITABLE BANC <EBNC> BOSS HAS AMERITRUST STAKE.
    WASHINGTON, March 16 - A group controlled by Equitable
Bancorp Chairman Alfred Lerner said it has acquired a 9.6 pct
stake in AmeriTrust Corp <AMTR> and may buy up to 24.9 pct if
obtains regulatory approval.
    In a filing with the Securities and Exchange Commission,
the group said it bought its stake of 2.0 mln Ameritrust common
shares, for 81.1 mln dlrs as an investment.
    But the group, acting through Clevebaco L.P., a Cleveland
partnership, also said it would seek regulatory approval to
increase its stake. Lerner owns Clevebaco Corp, which is the
general partner of Clevebaco L.P.
    The Lerner group said it filed with the Federal Reserve
Board on March 13 notice of its intent to buy more than 10 pct
of the common stock of AmeriTrust, a Cleveland bank holding
company.
    If the Fed approves, Lerner, whose Equitable Bancorp is
also in Cleveland, said he intends to buy more AmeriTrust
stock, subject to market conditions and other factors.
    Since Lerner heads a bank holding company with assets
greater than one billion dlrs, he said he is barred by law from
serving as a director or officer of AmeriTrust or of having his
representatives on its board.
    Lerner said he has no intention of influencing AmeriTrust
management or its policies.
    The group said Clevebaco L.P. bought one mln of its shares
from Bear, Stearns and Co Inc on March 9 at 41 dlrs a share.
    Lerner said he accumulated the other one mln shares through
March 3 and sold them to Clevebaco L.P., which he controls, on
March 10 for 40.10 dlrs a share.


.I 10430
.C
acq
.W
AMERICAN SECURITY <ASEC> BUYOUT COMPLETED.
    BALTIMORE, March 16 - Maryland National Corp <MDNT> said it
has completed the acquisition of American Security Corp in an
exchange of 0.81 Maryland share for each of American's 12 mln
shares outstanding.
    The company said the mandatory 30-day review by the U.S.
Justice Department was completed today.
    Maryland National said American Security shareholders will
be entitled to receive the 32-1/2 ct per share Maryland
National regular quarterly dividend that is payable March 31 to
holders of record today.


.I 10431
.C
grain;corn;
.W
U.S. COULD COMPLAIN TO GATT ON CANADA CORN DUTY.
    WASHINGTON, March 16 - U.S. Trade Representative Clayton
Yeutter suggested the U.S. could file a formal complaint with
the General Agreement on Tariffs and Trade (GATT) challenging
Canada's decision to impose duties on U.S. corn imports.
    Asked about the Canadian government decision to apply a
duty of 84.9 cents per bushel on U.S. corn shipments, Yeutter
said the U.S. could file a formal complaint with GATT under the
dispute settlement procedures of the subsidies code.
    Other U.S. options would be to appeal the decision in
Canadian courts, or to retaliate against Canadian goods, a
lower-level U.S. trade official said. However, retaliation is
an unlikely step, at least initially, that official said. No
decision on U.S. action is expected at least until after
documents on the ruling are received here later this week.


.I 10433
.C
acq
.W
RAINIER <RBAN> COMPLETES ACQUISITION.
    SEATTLE, March 16 - Rainier Bancorp said it completed the
acquisition of Tacoma, Wash.-based United Bank, for 59 mln dlrs
worth of Rainier stock.
    United, a savings bank with 607 mln dlrs in assets and 23
offices, will operate as a wholly-owned subsidiary, Rainier
said.
    Rainier, which last month agreed to merge with Security
Pacific Corp <SPC>, said the United acquisition will increase
its assets to 9.8 billion dlrs from the 9.2 billion reported at
the end of 1986.


.I 10435
.C
earn
.W
FRANKLIN RESOURCES INC <BEN> SETS QUARTERLY.
    SAN MATEO, Calif., March 16 -
    Qtly div six cts vs six cts prior
    Pay April 10
    Record March 27


.I 10436
.C
cpi
.W
BALLADUR MAINTAINS 1987 FRENCH INFLATION TARGET.
    PARIS, March 16 - Finance Minister Edouard Balladur said he
was maintaining his 2.5 pct inflation target for 1987 after the
announcement earlier today of a 3.4 pct year-on-year rise in
retail prices for February.
    He told a radio interviewer he saw no reason to revise his
target for 1987 after the February monthly result of between
0.1 to O.2 pct, following a 0.9 pct rise in January (three pct
year on year) that forced the government to revise an earlier
target of two pct to a current 2.5 pct.
    He said he was happy with "a good result" for February but
stressed a need for continued "vigilance" against inflation.
    A Finance Ministry statement said the year-on-year
differential between French and lower West German inflation
rates, calculated on the last three months, had narrowed in
February to two to 2.3 pct compared to 2.7 pct in January.
    If calculated on the last 12 months, the differential came
to 3.9 pct, the statement said, adding "The tendency is
therefore one of a lessening of the inflation gap with our main
trading partner."


.I 10438
.C
earn
.W
GENERAL CINEMA <GCN> SEES FLAT 1987 NET.
    NEW YORK, March 16 - General Cinema Corp said it expects
flat net income for fiscal 1987 ending Oct. 31 against 125.8
mln dlrs or 3.43 dlrs a share a year ago.
    The company said the costs of a restructuring at its Carter
Hawley Hale Stores Inc unit and the previous purchase of an 8.5
pct stake in <Cadbury Schweppes PLC> will lead to the flat net
figure.
    It also said it may raise its stake in Cadbury Schweppes to
25 pct, but has not made any additional stock purchases so far.
    According to the restructuring, Carter Hawley plans to
spin-off its specialty stores, including Neiman-Marcus,
Bergdorf Goodman and Contempo Casuals, into a new company named
<Neiman-Marcus Group>, whose shares will trade on the New York
Stock Exchange, it said.
    As previously announced, General Cinema will own 60 pct of
the equity and 40 pct of the voting shares in the new company.
The restructuring is subject to approval by Carter Hawley
shareholders.



.I 10439
.C
gold
.W
LEVON RESOURCES <LVNVF> GOLD ASSAYS IMPROVED.
    VANCOUVER, British Columbia, March 16 - Levon Resources Ltd
said re-checked gold assays from the Howard tunnel on its
Congress, British Columbia property yielded higher gold grades
than those reported in January and February.
    It said assays from zone one averaged 0.809 ounces of gold
a ton over a 40 foot section with an average width of 6.26
feet. Levon previously reported the zone averaged 0.226 ounces
of gold a ton over a 40 foot section with average width of 5.16
feet. Levon said re-checked assays from zone two averaged 0.693
ounces of gold a ton over a 123 foot section with average width
of 4.66 feet.
    Levon Resources said the revised zone two assays compared
to previously reported averages of 0.545 ounces of gold a ton
over a 103 foot section with average width of 4.302 feet.
    The company also said it intersected another vein 90 feet
west of zone two, which assayed 0.531 ounces of gold a ton
across a width of 3.87 feet.


.I 10441
.C
earn
.W
<TEECO PROPERTIES LP> SETS CASH DISTRIBUTION.
    NEW YORK, March 16 - 
    Qtly distribution 10 cts per unit vs 10 cts prior
    Pay April 20
    Record March 31
   


.I 10443
.C
earn
.W
<RADIX VENTURES INC> 2ND QTR JAN 31 LOSS.
    NEW YORK, March 16 -
    Shr loss three cts vs loss 12 cts
    Net loss 25,836 vs loss 88,819
    Revs 50.3 mln vs 45.2 mln
    Six mths
    Shr profit nil vs loss 18 cts
    Net profit 2,843 vs loss 137,653
    Revs 109.3 mln vs 99.3 mln


.I 10444
.C
oilseed;wheat;grain;corn;soybean;
.W
TRADE SEES STEADY CORN/WHEAT EXPORT INSPECTIONS.
    CHICAGO, March 16 - The USDA's weekly export inspection
report is expected to show steady corn and wheat exports and
lower soybean exports, according to CBT floor traders'
forecasts.
    Traders projected soybean exports at 16 mln to 18 mln
bushels, down from 18.6 mln bushels a week ago and 20.3 mln
bushels a year ago.
    Corn guesses ranged from 22 mln to 26 mln bushels, compared
with 25.2 mln bushels a week ago and 22.4 million bushels a
year ago.
    Wheat guesses ranged from 13 mln to 17 mln bushels,
compared with 16.8 mln bushels a week ago and 13.4 mln bushels
a year ago.


.I 10445
.C
earn
.W
ADOBE SYSTEMS INC <ADBE> 1ST QTR FEB 28 NET.
    PALO ALTO, Calif., March 16 -
    Shr 15 cts vs six cts
    Net 1,410,000 vs 550,000
    Revs 6,901,000 vs 2,392,000
    Avg shrs 10,326,000 vs 9,064,000
    Note:  Prior qtr per share figure adjusted for two-for-one
stock split of February 27.


.I 10446
.C
acq
.W
ARMTEK <ARM> COMPLETES SALE OF ASSETS.
    GREENWICH, Conn., March 16 - Armtek Corp, formerly
Armstrong Rubber Co, completed the previously announced sale of
its Natchez, Miss., tire plant and other assets to <Condere
Corp>, Condere said.
    Condere, formed to acquire the Armstrong assets, said it
named Dennis Terwillger, formerly vice president and controller
of Armstrong's Tire Division, president.


.I 10448
.C
earn
.W
202 DATA SYSTEMS INC <TOOT> 1ST QTR JAN 31 NET.
    WAYNE, Pa., March 16 -
    Shr three cts vs four cts
    Net 101,376 vs 125,922
    Revs 568,884 vs 494,227


.I 10450
.C
earn
.W
VISHAY <VSH> SETS TWO PCT STOCK DIVIDEND.
    MALVERN, Pa., March 16 - Vishay Intertechnology Inc said
its board declared a two pct stock dividend, payable April 10
to holders of record on March 26.
    The company said the stock dividend will be paid only to
holders of commons tock who do not exchange for Class B stock
in Vishay's current exchange offer, which expires March 25.


.I 10451
.C
earn
.W
<ONYX PETROLEUM EXPLORATION CO LTD> YEAR LOSS.
    CALGARY, Alberta, March 16 -
    Shr loss 2.82 dlrs vs profit 35 cts
    Net loss 10,556,478 vs profit 1,286,341
    Revs 6,202,157 vs 7,641,290
    Note: 1986 shr and net after 10,282,353 dlr writedown on
oil and gas property values


.I 10453
.C
earn
.W
INTEGRATED CIRCUITS <ICTM> SETS RECORD DATE.
    REDMOND, Wash., March 16 - Integrated Circuits Inc said it
set March 17 as the record date for its previously announced 10
pct stock dividend.
    The company said it will distribute the dividend on March
31.


.I 10454
.C
gold
.W
BP <BP> UNIT SEES MINE PROCEEDING.
    NEW YORK, March 16 - British Petroleum Co PLC said based on
a feasibility report from <Ridgeway Mining Co>, its joint
venture Ridgeway Project in South Carolina could start
commercial gold production by mid-1988.
    The company said the mine would produce at an approximate
rate of 158,000 ounces of gold per year over the first four
full years of operation from 1989 through 1992 and at an
average of 133,000 ounces a year over the full projected
11-year life of the mine.
    BP's partner in the venture is Galactic Resources Ltd
<GALCF> of Toronto.
    The company said subject to receipt of all statutory
permits, finalization of financing arrangements and management
and joint venture review, construction of a 15,000 short ton
per day processing facility can start.  Capital costs to bring
the mine into production are estimated at 76 mln dlrs.


.I 10455
.C
ship;crude;trade;
.W
NORWAY APPROVES TRADE BAN AGAINST SOUTH AFRICA.
    OSLO, March 16 - Norway's parliament has approved an
extensive trade ban against South Africa but left shipowners a
key loophole through which controversial oil shipments on
Norwegian tankers may continue, government officials said.
    The unilateral boycott, proposed by Norway's minority
Labour government, gives domestic companies until late
September to cut remaining trade ties with South Africa and
Namibia.
    "The legislation discussed today must not be seen as an
isolated measure, but as a step in an international process,"
Norway's foreign minister Thorvald Stoltenberg told parliament.
    Government officials said they hope the move will intensify
international pressure against the Pretoria regime's apartheid
policies. Sweden, in a similar move last week, promised to halt
all trade with South Africa by October.
    Norway's boycott, although forbidding crude oil shipments
to South Africa on Norwegian-owned tankers, makes an important
exception for ships whose final destination is decided while
they are at sea.
    Oil cargoes are often resold by trades after loading,
making it difficult for shipowners to know their ships' final
port at the start of a voyage.
    Critics said the bill leaves the door open for continued
oil shipments to South Africa. They called for stricter
sanctions to stop all Norwegian shipping to South Africa.
    Norwegian tankers supplied South Africa with about 30 pct
of its crude imports during the early 1980s, but the trade has
dropped sharply to just one cargo in the last three months,
trade ministry officials said.
    The latest trade figures show Norwegian imports from South
Africa dropped 36 pct to 160 mln crowns during the first eight
months of 1986, while exports plunged 52 pct to 265 mln crowns
from the year-ago figure.
    "Many would say that the law has already had its effect
because of the dramatic drop in trade between South African and
Norway," Foreign Ministry spokesman Per Paust told Reuters.
    "Norwegian business at an early stage started restructuring
its relations with South Africa in anticipation of the law.
    "No one has said the boycott will have a profound effect on
international trade with South Africa, but it is an important
political statement by the Norwegian government," he said.
    The Oslo government said it will review the effects of the
ban on Norwegian industry after two years and may propose
amendments if industry can show it is hurt by the law.
    Norwegian imports from South Africa are limited mainly to
high-grade manganese and coppernickle ores used in it
ferro-alloys and light metals industries.
    Metals manufacturers estimate some 2,000 jobs could be
affected by the boycott is suitable replacements for these ores
are not found.
    The legislation now goes on to the upper house for formal
ratification later this week, parliamentarians said.


.I 10456
.C
earn
.W
MSA REALTY CORP <SSS> 4TH QTR NET.
    INDIANAPOLIS, March 16 -
    Shr profit four cts vs loss two cts
    Net profit 247,970 vs loss 57,341
    Revs 2,393,622 vs 2,627,612
    Avg shrs 5,958,432 vs 2,440,100
    Year
    Shr profit 71 cts vs loss 35 cts
    Net profit 3,213,310 vs loss 849,180
    Revs 14.6 mln vs 9,099,767
    Avg shrs 6,177,666 vs 2,440,083
    NOTE: 1986 4th qtr and yr net includes a loss of 85,000
dlrs and a gain of 250,000 dlrs, respecitvely, for
extraordinary item.
    1986 net assumes all warrants exercised for the 2nd qtr
only. The adjustment to second quarter income for earnings per
share was 1,175,000 dlrs.


.I 10457
.C
earn
.W
LEAR PETROLEUM PARTNERS LP <LPP> 4TH QTR LOSS.
    DALLAS, March 16 -
    Oper shr loss nil vs loss nil
    Oper net loss 112,000 vs loss 125,000
    Revs nil vs nil
    Avg shrs 26.7 mln vs 21.9 mln
    Year
    Oper shr loss two cts vs loss two cts
    Oper net loss 450,000 vs loss 503,000
    Revs nil vs nil
    Avg shrs 24.8 mln vs 20.8 mln
    NOTE: Net excludes losses from discontinued oil and natural
gas operations of 44.7 mln dlrs vs 9,489,000 dlrs in quarter
and 92.3 mln dlrs vs 80.7 mln dlrs in year.  Company sold all
its operations at the end of 1986.


.I 10458
.C
earn
.W
WESTRONIC INC <WSTX> YEAR LOSS.
    MIDVALE, Utah, March 16 -
    Shr loss 1.13 dlr vs loss 2.04 dlrs
    Net loss 3,674,000 vs loss 3,016,000
    Revs 2,894,000 vs 1,464,000


.I 10459
.C
earn
.W
KENAN TRANSPORT CO <KTCO> SETS QUARTERLY.
    CHAPEL HILL, N.C., March 16 -
    Qtly div four cts vs four cts prior
    Pay April 15
    Record March 31


.I 10462
.C
earn
.W
******GENCORP 1ST QTR SHR 77 CTS VS 84 CTS.
Blah blah blah.

.I 10466
.C
ship;crude;
.W
GOTAAS-LARSEN <GOTLF> TO BUILD FIFTH CARRIER.
    HAMILTON, Bermuda, March 16 - Gotaas-Larsen Shipping Corp
said it had exercised an option to build a fifth in a series of
crude oil carriers to be constructed by <Daewoo Shipbuilding
and Heavy Machinery Ltd> in South Korea.


.I 10467
.C
bop
.W
DANISH CREDIT DOWNGRADING NOT DRAMATIC - MINISTER.
    COPENHAGEN, March 16 - Finance Minister Palle Simonsen said
today's downgrading of Denmark's credit rating by Standard and
Poor's Corp should not be over-dramatised.
    Standard and Poor's said it had downgraded the Kingdom of
Denmark's long-term external debt to AA from AA-Plus, following
the country's loss of the top AAA rating in January 1983.
    "This change is regrettable but there is no reason to
dramatise. This is a change of nuance. Standard and Poor's
defines the AA category as only slightly different from the top
AAA rating," Simonsen said in a statement.
    "The direct effect of the lower rating on our borrowing
capability is unlikely to be very great. But if, against
expectation, we fail to reduce permanently the external account
deficit... This will inevitably affect borrowing terms and
capability," he added.
    "Standard & Poor's has noted that in 1986 there was a series
of austerity measures designed particularly to cut lending and
encourage saving. Tax reforms have also gone into effect.
    "If and when it becomes necessary, the government will be
ready to take any necessary economic and political initiatives
as it has in the past," Simonsen said.
   Standard and Poor's said weaker international
competitiveness in the face of rising labour costs would mean a
deteriorating current account balance and a rise in external
debt.
    The external current account deficit rose to a record
preliminary 34.5 billion crowns in 1986 from 29.1 billion in
1985, bringing total foreign debt to 265 billion crowns,
according to government statistics.
    Government economists forecast that the external current
account deficit will fall to 19 billion crowns this year.
    Denmark's net foreign debt rose to 129 pct of total exports
in 1986 from 83 pct in 1983, S and P said.


.I 10468
.C
earn
.W
MAGNETIC TECHNOLOGIES CORP <MTCC> 1ST HALF NET.
    ROCHESTER, N.Y., March 16 - Jan 31 end
    Shr not given
    Net profit 105,013 vs loss 745,641
    Sales 3,661,565 vs 2,810,132


.I 10469
.C
earn
.W
GENCORP <GY> 1ST QTR FEB 28 NET.
    AKRON, Ohio, March 16 -
    Shr 77 cts vs 84 cts
    Net 17 mln vs 19 mln
    Sales 650 mln vs 614 mln


.I 10471
.C
gold
.W
BP UNIT SEES U.S. GOLD MINE PROCEEDING.
    NEW YORK, March 16 - British Petroleum Co PLC said based on
a feasibility report from Ridgeway Mining Co, its joint venture
Ridgeway Project in South Carolina could start commercial gold
production by mid-1988.
    The company said the mine would produce approximately
158,000 ounces of gold per year over the first four full years
of operation from 1989 through 1992 and at an average 133,000
ounces a year over the full projected 11 year life of the mine.
    BP's partner is Galactic Resources Ltd of Toronto.
    BP said subject to receipt of all statutory permits,
finalization of financing arrangements and management and joint
venture review, construction of a 15,000 short ton per day
processing facility can start. Capital costs to bring the mine
into production are estimated at 76 mln dlrs.


.I 10472
.C
acq
.W
SAFETY-KLEEN <SK> TO BUY STAKE IN OIL REFINER.
    ELGIN, Ill., March 16 - Safety-Kleen Corp said it has
tentatively agreed to buy an 80 pct stake in Breslube
Enterprises of Toronto for 14 mln dlrs in stock, cash and
equipment.
    Price includes 14 mln dlrs of Safety-Kleen common stock,
cash and a rerefining plant owned by Safety-Kleen. Closing of
the deal is expected by May.
    Breslube is a leading rerefiner of used lubricating oils in
North America, collecting used oils from auto garages, car
dealers and other businesses. In 1986 it refined 20 mln gallons
of used oil.


.I 10474
.C
trade
.W
TRADE INTERESTS READY FOR BATTLE IN U.S. HOUSE.
    By Jacqueline Frank, Reuters
    WASHINGTON, March 16 - U.S. lawmakers are gearing up for a
showdown between protectionists and free traders as a major
trade bill winds its way through committees to a vote by the
full House of Representatives in late April.
    In a move to toughen U.S. enforcement of trade laws, a key
House subcommittee last week approved a toned-down version of
legislation to require President Reagan to retaliate against
foreign countries that follow unfair trade practices.
    The bill will be the cornerstone of congressional efforts
to restore competitiveness of American industries and turn
around last year's record 169 billion dlrs trade deficit.
    Generally, the bill's provisions toughen U.S. enforcement
of trade laws.
    The trade bill forces the administration to act rapidly on
complaints of unfair trade practices, such as dumping products
in the United States at prices below cost of production. It
also forces the administration to act rapidly when an industry
complains that a surge in imports threatens its existence.
    In writing the bill, the subcommittee rejected calls for
trade relief for specific industries such as textiles.
    Several lawmakers have argued the new trade bill made too
many concessions to Reagan and said they intend to back
amendments to "get tough" with countries that violate trade
agreements or keep out U.S. products.
    But congressmen known for their allegiance to free trade
said the bill ties Reagan's hands too much in trade disputes
and they will seek to restore his negotiating powers.
    Bill Frenzel, R-MI., said the subcommittee's bill was not
one "that a free trader like me could endorse in all respects,"
but he emphasized there was a consensus among lawmakers to work
toward a bill Reagan and Republicans would ultimately endorse.
    The goal of trade legislation was "to make our trade policy
stronger without violating our international trade agreements,"
he said.
    In a key concession made at the urging of Ways and Means
Committee chairman Dan Rostenkowski, D-IL., the trade
subcommittee backed off a requirement that would have forced
Reagan to impose automatically quotas or tariffs on imports
from countries that engage in unfair trade practices.
    It also agreed the president may waive any retaliation if
it would hurt the U.S. economy.
    Rostenkowski insisted the more moderate approach was
necessary if the House wanted to pass a bill Reagan would sign
into law.
    Reagan last year blocked Senate consideration of a tough
House trade bill he branded as protectionist and this year he
only reluctantly agreed to support a trade bill when he saw
Democratic leaders were determined to pass such legislation.
    White House spokesman Marlin Fitzwater told reporters late
last week that the administration still did not like some of
the bill's provisions, but he added, "Generally we feel very
good about the bipartisan consideration of the trade
legislation. I think we are progressing very well."
    The first battle will take place next week when the full
House Ways and Means Committee considers an amendment by Rep.
Richard Gephardt, D-MO., to force countries like Japan, South
Korea and Taiwan to cut their trade surpluses with the U.S.
    The subcommittee limited the Gephardt plan to provide only
that the existence of a large trade surplus with the United
States will trigger an investigation of unfair trade practices,
but would not automatically set off retaliation.
    Organized labor has pressed lawmakers for more relief from
imports where jobs have been lost to foreign competition.
    AFL-CIO president Lane Kirkland this year angered the
administration when he said any trade bill Reagan would sign
would not be worth passage in Congress.
    But Rostenkowski set the tone of the trade debate by
saying, "I'm not trying to write legislation to please Lane
Kirkland. I'm trying to write legislation that will be signed
by the president."
    Rep. Ed Jenkins (D-GA.) intends to push separately a bill
to protect the domestic textile and shoe industry, an aide
said. Reagan vetoed a similar measure last year.
    House Speaker Jim Wright of Texas, one of the most
influential proponents of aid for specific industries beset by
low-priced foreign competition, last week renewed his call for
import relief for the domestic oil industry and announced his
support for a Senate plan to trigger a temporary oil import
tariff when imports reach half of domestic consumption.


.I 10476
.C
earn
.W
MAGNETIC TECHNOLOGIES <MTCC> SEES IMPROVEMENT.
    ROCHESTER, N.Y., March 16 - Magnetic Technologies Corp said
it expects the second half to show continued growth in earnings
and sales.
    The company today reported a profit for the first half
ended January 31 of 105,013 dlrs, compared with a year-earlier
loss of 745,641 dlrs, on sales of 3,661,565 dlrs, up from
2,810,132 dlrs.  In all of last year, Magnetic earned 996,000
dlrs after a loss from discontinued operations of 359,000 dlrs,
on sales of 6,084,000 dlrs.


.I 10477
.C
gold
.W
LEVON RESOURCES REPORTS IMPROVED GOLD ASSAYS.
    VANCOUVER, British Columbia, March 16 - Levon Resources Ltd
said re-checked gold assays from the Howard tunnel on its
Congress, British Columbia property yielded higher gold grades
than those reported in January and February.
    It said assays from zone one averaged 0.809 ounces of gold
a ton. Levon previously reported the zone averaged 0.226 ounces
of gold a ton. Levon said re-checked assays from zone two
averaged 0.693 ounces of gold a ton.
    Levon Resources said the revised zone two assays compared
to previously reported averages of 0.545 ounces of gold a ton.
    The company also said it intersected another vein 90 feet
west of zone two, which assayed 0.531 ounces of gold a ton.


.I 10478
.C
earn
.W
WELBILT CORP <WELB> 4TH QTR NET.
    NEW HYDE PARK, N.Y., March 16 -
    Shr 58 cts vs 54 cts
    Net 3,144,000 vs 2,464,000
    Revs 54.6 mln vs 38.6 mln
    Avg shrs 5,394,000 vs 4,602,000
    Year
    Shr 2.03 dlrs vs 1.76 dlrs
    Net 10.5 mln vs 8,084,000
    Revs 201.1 mln vs 152.4 mln
    Avg shrs 5,154,000 vs 4,602,000


.I 10479
.C
earn
.W
SATELLITE MUSIC NETWORK INC <SMNI> YEAR NET.
    DALLAS, March 16 -
    Oper shr four cts vs three cts
    Oper net 340,036 vs 223,297
    Revs 11.1 mln vs 9,514,115
    Avg shrs 8,926,909 vs 7,672,146
    NOTE: Net excludes tax credits of 252,160 dlrs vs 152,717
dlrs.


.I 10480
.C
gold
.W
STARREX LINKS SHARE PRICE TO ASSAY SPECULATION.
    TORONTO, March 16 - <Starrex Mining Corp Ltd> said a sharp

rise in its share price is based on speculation for favorable
results from its current underground diamond drilling program
at its 35 pct owned Star Lake gold mine in northern
Saskatchewan.
    Starrex Mining shares rose 40 cts to 4.75 dlrs in trading
on the Toronto Stock Exchange.
    The company said drilling results from the program which
started in late February are encouraging, "but it is too soon
for conclusions." Starrex did not disclose check assay results
from the exploration program.


.I 10481
.C
earn
.W
******COMBINED INT'L TO ASK DOUBLING OF AUTHORIZED SHARES, STOCK SPLIT.
Blah blah blah.

.I 10483
.C
earn
.W
******CANBRA FOODS LTD SETS SPECIAL ONE-TIME FIVE DLR/COMMON SHR CASH PAYOUT.
Blah blah blah.

.I 10484
.C
coffee;trade;
.W
ETHIOPIA MINISTER SEES AFRICA DEBT PAYMENT PROBLEM.
    ADDIS ABABA, March 16 - Africa may have to follow Brazil in
halting foreign debt payments unless industrialised nations are
prepared to be more flexible in trade and economic policy,
Ethiopian trade minister Tesfay Dinka said.
    Growing protectionism and declining commodity prices had
caused a major deterioration in the export earnings of all
developing countries, he said in an opening speech to a meeting
of African trade ministers in Addis Ababa.
    Unless there was an early improvement in developing
countries' terms of trade "the only choice is to follow the
route that Brazil appears to have taken," Tesfay said.
   The two-day meeting of delegates from 50 African states was
called to work out a consensus ahead of the Group of 77
ministerial meeting in Havana next month, when the developing
countries will debate their strategy in economic negotiations
with the West.
    Tesfay accused the West of intransigence in the negotiation
of recent commodity agreements.
    The failure of the International Coffee Organisation to
agree on the reintroduction of export quotas would mean "several
African countries will not have the foreign exchange to import
essential items," he said.
    Coffee accounts for 60 pct of Ethiopian exports and the
recent fall in world coffee prices has sharply reduced the
country's foreign exchange earnings.
    Adebayo Adedeji, the executive secretary of the U.N.
Economic Commission for Africa, told the meeting that there was
an increasing net outflow of resources from Africa.
    He blamed this on high interest rates, debt servicing and
the repatriation of profits by foreign investors.
    Africa paid 13 billion dlrs to service its total foreign
debt last year and by 1990 annual service payments are expected
to rise to between 16 and 24 billion, Adedeji said.
    He accused industrialised countries of failing to provide
more resources to implement the U.N. Program for Africa's
economic recovery and development, despite Africa's willingness
to raise two thirds of the capital from domestic sources.
    The U.N. Program, approved last year, calls for 128 billion
dlrs of economic investment in Africa over five years.
    Western donors were asked to contribute 46 billion dlrs,
with the rest being raised from local resources, but Adedeji
said the donors had not responded as hoped.
   In view of this poor response, he said "it is possible that
by the year 2,000 nearly all African countries, except a few,
will be categorised as least developed countries."
    At present, 27 of Africa's 50-odd states are officially
listed in this category.


.I 10485
.C
earn
.W
******CANBRA FOODS LTD YEAR OPER SHR PROFIT 1.52 DLRS VS LOSS 55 CTS.
Blah blah blah.

.I 10486
.C
earn
.W
WILSON FOODS CORP <WILF> 2ND QTR JAN 31 NET.
    OKLAHOMA CITY, March 16 -
    Oper shr profit 21 cts vs loss 55 cts
    Oper net profit 1,528,000 vs loss 3,296,000
    Sales 329.4 mln vs 368.0 mln
    1st half
    Oper shr profit 28 cts vs loss 4.55 dlrs
    Oper net profit 2,026,000 vs loss 27.3 mln
    Sales 691.3 mln vs 738.2 mln
    NOTE: Prior half net includes pretax charge 21.4 mln dlrs
from plant closings and workforce reductions.
    Current year net excludes tax credits of 1,381,000 dlrs in
quarter and 1,722,000 dlrs in half.


.I 10488
.C
earn
.W
<CANBRA FOODS LTD> YEAR NET.
    LETHBRIDGE, Alberta, March 16 -
    Oper shr profit 1.52 dlrs vs loss 55 cts
    Oper profit 4,172,188 vs loss 1,502,032
    Revs not given
    Note: 1986 shr and net exclude extraordinary gain of
1,294,245 dlrs or 47 cts share on sale of Stafford Foods unit


.I 10489
.C
earn
.W
OXFORD FIRST CORP <OFC> 4TH QTR NET.
    PHILADELPHIA, March 16 -
    Oper shr 45 cts vs 24 cts
    Qtly div six cts vs six cts prior
    Oper net 1,766,000 vs 950,000
    Revs 9,321,000 vs 5,298,000
    Year
    Oper shr 1.25 dlrs vs one dlr
    Oper net 4,985,000 vs 3,894,000
    Revs 28.3 mln vs 19.9 mln
    NOTE: Net excludes losses from discontinued operations of
161,000 dlrs vs 66,000 dlrs in quarter and 464,000 dlrs vs
226,000 dlrs in year.
    Dividend pay May Five, record April 13.
    Share adjusted for three-for-two stock split.


.I 10492
.C
earn
.W
HARRIS-TEETER PROPERTIES <HTP> REPORTS EARNINGS.
    CHARLOTTE, N.C., March 16 - Harris-Teeter Properties Inc
reported fourth quarter fiscal 1986 earnings per share of 24
cts on earnings of 601,000 dlrs. 
    The realty investment trust company started operations in
August and had no comparable figures, it said.


.I 10495
.C
earn
.W
BSN CORP <BSN> 4TH QTR NET.
    DALLAS, March 16 -
    Shr two cts vs eight cts
    Net 73,000 vs 233,000
    Revs 21.0 mln vs 9,510,000
    Avg shrs 3,620,000 vs 2,886,000
    Year
    Shr 66 cts vs 37 cts
    Net 2,246,000 vs 1,064,000
    Revs 68.3 mln vs 40.8 mln
    Avg shrs 3,392,000 vs 2,886,000
    NOTE: 1985 year net includes extraordinary gain one ct shr
and gain two cts from cumulative effect of accounting change.


.I 10496
.C
earn
.W
BSN <BSN> SEES HIGHER 1987 NET.
    DALLAS, March 16 - BSN Corp said it expects revenues of
about 120 mln dlrs and a substantial increase in net income and
earnings per share for 1987.
    Today it reported 1986 net income of 2,246,000 dlrs or 66
cts per share on revenues of 68.3 mln dlrs, up from 1,064,000
dlrs or 37 cts per share on revenues of 40.8 mln dlrs a year
before.


.I 10498
.C
earn
.W
COMBINED INT'L <PMA> HOLDERS TO VOTE ON SPLIT.
    CHICAGO, March 16 - Combined International Corp said it
will ask shareholders at the April 23 annual meeting to approve
the doubling of authorized common shares to 120 mln.
    Holders will also vote on a proposal to create a new class
of 25 mln shares of serial preferred stock one dlr par value in
place of its existing classes of authorized and unissued
preferred stock.
    It said at its regular March board meeting members will
consider a stock split or stock dividend, which would be
contingent upon stockholder approval of the changes in the
capital structure at the April annual meeting.
    Holders will also be asked to approve a new corporate name,
Aon Corp. It said aon is a Gaelic word meaning unit. The name
is intended to eliminate confusion between the parent company
and its principal subsidiary, Combined Insurance Co of America.
    Holders will also vote on a proposal to limit the liability
of directors and amend the provision for indemnifying
directors, officers employees an agents. This is being done to
reduce the costs of liability insurance.


.I 10499
.C
earn
.W
CANBRA FOODS SETS SPECIAL FIVE DLR/SHR PAYOUT.
    LETHBRIDGE, Alberta, March 16 - <Canbra Foods Ltd>, earlier
reporting a 1986 net profit against a year-ago loss, said it
declared a special, one-time dividend of five dlrs per common
share, pay March 31, record March 26.
    Canbra said it set the special payout to allow shareholders
to participate in the gain on the sale of unit Stafford Foods
Ltd in November, 1986, as well as the company's "unusually
profitable performance" in 1986.
    Canbra earlier reported 1986 net earnings of 4.2 mln dlrs,
excluding a 1.3 mln dlr gain on the Stafford sale, compared to
a year-ago loss of 1.5 mln dlrs.


.I 10505
.C
earn
.W
ADVANCE CIRCUITS INC <ADVC> 2ND QTR FEB 28 NET.
    MINNETONKA, Minn. March 16 -
    Oper shr profit one cts vs loss 22 cts
    Oper net profit 35,000 vs loss 948,000
    Revs 17.4 mln vs 13.8 mln
    Six mths
    Oper shr loss 23 cts vs loss 48 cts
    Oper net loss 1,025,000 vs loss 2,093,000
    Revs 32.5 mln vs 27.6 mln
    NOTE: Results exclude credits of 1,737,000 or 39 cts shr
for both 1987 periods from refinancing of debt.


.I 10506
.C
earn
.W
COMMONWEALTH MORTGAGE <CMA> SETS PAYOUT.
    HOUSTON, March 16 -
    Qtrly div 26 cts Class A vs 12 cts
    Qtrly div one cent Class B vs nil
    Pay May 15
    Record March 31
    NOTE: prior qtr pro rated on 45 day basis for abbreviated
qtr.
    Full name of company commonwealth mortgage of america.


.I 10507
.C
earn
.W
<BKLA BANCORP> DEC 31 YEAR NET.
    LOS ANGELES, March 16 -
    Shr 90 cts vs 66 cts
    Net 924,000 vs 679,000
    Loans 88.7 mln vs 67.4 mln
    Deposits 165.5 mln vs 106.7 mln
    Assets 181.5 mln vs 124.5 mln


.I 10508
.C
earn
.W
PRECISION TARGET MARKETING <PTMI> 3RD QTR NET.
    NEW HYDE PARK, N.Y., March 16 - Qtr ends Jan 31
    Shr profit one ct vs loss two cts
    Net profit 74,000 vs loss 122,000
    Revs 1,657,000 vs 1,416,000
    Nine mths
    Shr profit five cts vs loss 10 cts
    Net profit 299,000 vs loss 624,000
    Revs 5,134,000 vs 3,744,000
    NOTE: Full name Precision Target Marketing Inc.
    Nine months 1987 includes extraordinary gain of two cts per
share.


.I 10509
.C
acq
.W
CHEYENNE SOFTWARE <CHEY> IN ACQUISITION TALKS.
    ROSLYN, N.Y., March 16 - Cheyenne Software Inc said it is
in preliminary talks on the acquisition of compouter hardware
distribution firm F.A. Components Inc and its Freeman-Owings
Inc subsidiary.
    The company said F.A. had sales of 43.1 mln dlrs for 1986
and expects to report a loss for the year.
    Cheyenne said the purchase price would be paid in common
stock and it would provide additional finances for the
operation of F.A.


.I 10510
.C
acq
.W
HUDSON VALLEY PATROL AGREES TO BUY GUARD FIRM.
    CHESTER, N.Y., March 16 - Hudson Valley Patrol Inc said it
agreed to acquire privately held Federal Protection Services
Inc, a Palm Beach, Fla., security firm, for 200,000 common
shares and other considerations.
    Hudson Valley, which provides guard and patrol services in
upstate N.Y., said Federal Protection Services provides
investigation, uniformed guard and armoured truck services to
banks, corporations and residential communities in southern
Florida.
    The company said it will issue 200,000 shares of its common
at closing and additional shares based on Federal Protection's
pretax earnings over the next three years.
    Closing is subject to setting a definitive agreement, it
said.


.I 10511
.C
cocoa
.W
ICCO TO EXAMINE BUFFER STOCK PROPOSAL TOMORRROW.
    LONDON, March 16 - The International Cocoa Organization,
ICCO, council adjourned after presenting divergent producer and
consumer views on buffer stock rules and agreeing to examine a
draft compromise proposal on the buffer stock issue tomorrow,
delegates said.
    ICCO Executive Director Kobena Erbynn will draw up what
some delegates called a "pre-compromise" and present it to the
buffer stock working group at 1130 hrs GMT Tuesday, they said.
    While consumer and producer member nations disagree how a
buffer stock should be implemented, both sides reiterated they
were willing to compromise to come to agreement, they said.
    "I am optimistic we will be able to come to an agreement --
maybe not tomorrow or the next day, but some time later in the
session," a consumer delegate said.
    Producers say they want the buffer stock to consist only of
ICCO member cocoa, comprise a representative basket of various
grade cocoas and pay different prices for different grades,
delegates said.
    Some consumers would rather the buffer stock manager be
able to buy non-member cocoa also, and pay a single price for
the buffer stock cocoa without respect to origin.
    Consumer members were not unified in their views on how the
buffer stock should operate, with several countries backing
different aspects of the producer stance, delegates said.
    The semi-annual council meeting is scheduled to run until
March 27. Consideration of the buffer stock rules is the most
controversial topic on the agenda, delegates said.


.I 10513
.C
earn
.W
AMCAST INDUSTRIAL CORP <ACST> 2ND QTR MARCH ONE.
    DAYTON, Ohio, March 16 -
    Shr profit 10 cts vs loss 2.20 dlrs
    Net profit 687,000 vs loss 14.5 mln
    Sales 68.3 mln vs 54.8 mln
    Avg shrs 7,018,000 vs 6,577,000
    1st half
    Shr profit 38 cts vs loss 1.95 dlrs
    Net profit 2,596,000 vs loss 12.8 mln
    Sales 129.9 mln vs 113.3 mln
    Avg shrs 6,964,000 vs 6,568,000


.I 10515
.C
earn
.W
SCIENTIFIC SYSTEMS SERVICES INC <SSSV> 4TH QTR.
    MELBOURNE, Fla., March 16 -
    Shr profit four cts vs loss 49 cts
    Net profit 160,700 vs loss 1,867,100
    Revs 4,700,000 vs 5,600,000
    Year
    Shr profit two cts vs loss 1.20 dlrs
    Net profit 84,400 vs loss 4,507,800
    Revs 20.5 mln vs 22.5 mln


.I 10516
.C
earn
.W
SKIPPERS INC <SKIP> SEMI-ANNUAL DIVIDEND.
    BELLEVUE, Wash., March 16 -
    Semi-annual div four cts vs four cts
    Pay April 30
    Record April 9


.I 10517
.C
earn
.W
ZIEGLER CO INC <ZEGL> SETS QUARTERLY.
    WEST BEND, Wis., March 16 -
    Qtly div 13 cts vs 13 cts prior
    Pay April 17
    Record April 3.
   


.I 10519
.C
oilseed;wheat;grain;corn;soybean;
.W
******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS  SOYBEANS 18,345 WHEAT 11,470 CORN 34,940.
Blah blah blah.

.I 10521
.C
acq
.W
BANKING CENTER <TBCX> TO MAKE ACQUISITION.
    WATERBURY, Conn., March 16 - Banking Center said it has
signed a letter of intent to acquire First Railroad Mortgage Co
from First Union Bank of Augusta, Ga., for undisclosed terms.
    The company said First Railroad had loan production of over
100 mln dlrs in 1986 and was servicing over 435 mln dlrs in
loans at the end of 1986.


.I 10522
.C
acq
.W
SAN PAOLO DI TORINO TO ACQUIRE CALIFORNIAN BANK.
    TURIN, March 16 - Italian state bank <Istituto Bancario San
Paolo di Torino> said its fully-owned <San Paolo U.S. Holding
Co> of Wilmington in the U.S. had signed a letter of intent to
acquire <Valley National Bank> of California.
    San Paolo said in a statement that, subject to obtaining
official authorization from the relevant bodies, it would merge
Valley National Bank with its subsidiary <First Los Angeles
Bank>.
    Value of the planned acquisition was not disclosed.


.I 10523
.C
oilseed;wheat;grain;barley;corn;soybean;cotton;sorghum;rice;
.W
USDA DETAILS CONSERVATION CROP ENROLLMENT.
    WASHINGTON, March 16 - Farmers enrolled over 6.5 mln acres
of program crops in the latest conservation reserve program
signup and around four mln acres of non-program crops,
Agriculture Department conservation specialists said.
    Soybean acreage amounted to less than two mln acres of the
non-program crop acreage enrolled, a USDA analyst said. Heavy
enrollment of non-base acreage in wheat states, of which a big
percentage would be fallow and non-soybean land, accounted for
a large portion of the non-program acreage, the analyst said.
    Wheat and corn acreage comprised slightly over 40 pct of
the total 10,572,402 acres accepted into the ten-year program.
    USDA analysts gave the following enrollment breakdown:
    -- wheat  2,615,140 acres
    -- corn   1,894,764 acres
    -- barley   705,888 acres
    -- sorghum  585,552 acres
    -- cotton   417,893 acres
    -- rice       2,035 acres
    -- peanuts      611 acres
    -- tobacco      285 acres
    -- total program crops  6,512,700 acres
    -- total nonprogram     4,059,702 acres
    -- total enrollment    10,572,402 acres
    USDA analysts are currently working on a complete state
breakdown of crop acreage enrollment and should have it ready
for publication later this week, they said.


.I 10524
.C
grain
.W
U.S. SENATOR UNCOMMITTED ON OFFERING 0/92 BILL.
    WASHINGTON, March 16 - Senator Richard Lugar of Indiana,
ranking Republican on the U.S. Senate Agriculture Committee,
has not decided whether to introduce an administration-backed
bill to apply the so-called 0/92 provision to 1988 through 1990
grain crops, an aide to the senator said.
    The Reagan administration has asked Lugar to offer the
measure, the aide said.
    However, a number of farm groups have told Lugar they
oppose the proposal on the grounds it would reopen the 1985
farm bill, and the senator has decided to take a second look at
the proposal, the aide said.
    Last week the aide indicated Lugar was planning to offer
the 0/92 measure and a bill to tighten a payment limitation
loophole.


.I 10528
.C
acq
.W
INTERNATIONAL FINE FOODS MAKES ACQUISITION.
    NEW YORK, March 16 - <International Fine Foods Inc> said it
has acquired 2001 Distributors Inc of West Babylon, N.Y., for
875,000 common shares, plus contingent shares based on future
earnings.
    2001 distributes fresh-squeezed juices and had a loss on
sales of about one mln dlrs in 1986, its first year of
operation.


.I 10530
.C
earn
.W
UNITED TOTE INC <TOTE> 1ST QTR JAN 31 NET.
    SHEPHERD, Mont., March 16 -
    Shr profit nil vs loss 10 cts
    Net profit 2,936 vs loss 170,866
    Revs 4,147,248 vs 1,091,392


.I 10533
.C
earn
.W
SEVEN OAKS <QPON> IN TELEMARKETING VENTURE.
    MEMPHIS, Tenn., March 16 - Seven Oaks International Inc
said it has formed a new 80 pct owned subsidiary called Seven
Oaks Direct Inc to offer a full line of telemarketing services.
    It said Seven Oaks direct management will own the remaining
20 pct.
    The company said initial costs connected with the startupo
of a new Memphis, Tenn., marketing center for Seven Oaks direct
may hurt earnings slightly in the first half of the year ending
in April 1988, but Seven Oaks Direct should operate at no worse
than breakeven for fiscal 1988 as a whole.


.I 10537
.C
earn
.W
QUADREX CORP <QUAD> 4TH QTR JAN 31 LOSS.
    CAMPBELL, Calif., March 16 -
    Shr loss eight cts vs loss 20 cts
    Net loss 586,000 vs los 1,497,000
    Revs 13.8 mln vs 14.4 mln
    Year
    Shr loss 15 cts vs loss 18 cts
    Net loss 1,135,000 vs loss 1,377,000
    Revs 57.7 mln vs 55.1 mln


.I 10540
.C
earn
.W
PHILIP CROSBY ASSOCIATES <PCA> EARNINGS DELAYED.
    WINTER PARK, Fla., March 16 - Philip Crosby Associates Inc
said its fourth quarter and annual earnings report will be
delayed two more weeks.
    The company cited the recent in-house embezzlement and a
subsequent review by auditors of its international situation as
reason for the delay.
    Philip Crosby, however, said it believes its December
estimate calling for earnings per share between 10 cts and 15
cts, on revenues of 11 mln dlrs, was still valid.


.I 10542
.C
earn
.W
UNITED TOTE INC <TOTE> 1ST QTR JAN 31 NET.
    SHEPHERD, Mont., March 16 -
    Shr nil vs loss 10 cts
    Net profit 2,936 vs loss 170,866
    Revs 4,147,248 vs 1,091,392


.I 10543
.C
ship;crude;fuel;
.W
PACIFIC RESOURCES <PRI> INSTALLS OIL MOORING.
    HONOLULU, March 16 - Pacific Resources Inc said it has
installed a CALM (Catenary Anchor Leg Mooring) single-point
mooring terminal off the southwest coast of Oahu at its
Hawaiian Independent Refinery at a cost of 3.5 mln dlrs.
    The system transfers crude and fuel oils from tankers to
the refinery's tank farm and carries refined products to ships
for export, PRI said.
    Company chairman Robert G. Reed said the new mooring system
will permit 24-hour service in most kinds of weather and will
reduce ship turnaround time. He said the mooring is the first
of its kind in the U.S.
    The new system can accomodate vessels up to 150,000
deadweight tons, or one mln barrels of cargo, PRI said.


.I 10545
.C
earn
.W
NEW PLAN REALTY TRUST <NPR> 2ND QTR NET.
    NEW YORK, March 16 - Qtr ends Jan 31
    Shr 22 cts vs 19 cts
    Net 4,549,000 vs 3,666,000
    Revs 8,903,000 vs 7,791,000
    Avg shrs 20.9 mln vs 19.9 mln
    Six mths
    Shr 42 cts vs 41 cts
    Net 8,641,000 vs 7,928,000
    Revs 17.5 mln vs 14.6 mln
    Avg shrs 20.8 mln vs 19.4 mln
    NOTE: earnings were restated to reflect the three-for-two
stock split on April one, 1986.


.I 10547
.C
acq
.W
******SCHLUMBERGER SAYS IT TERMINATES PACT TO SELL FAIRCHILD SEMICONDUCTOR BUSINESS TO FUJITSU.
Blah blah blah.

.I 10548
.C
veg-oil;meal-feed;
.W
MORE CCC CREDIT GUARANTEES FOR ALGERIA -- USDA.
    WASHINGTON, March 16 - The Commodity Credit Corporation
(CCC) has approved an additional 84.0 mln dlrs in credit
guarantees for sales of U.S. agricultural products to Algeria
for fiscal year 1987 under the Export Credit Guarantee Program
(GSM-102), the U.S. Agriculture Department said.
    The department said the additional guarantees provide up to
31.0 mln dlrs in coverage for sales of protein meals, 9.0 mln
dlrs for tallow, and 44.0 mln dlrs for vegetable oils.
    The latest guarantees increase the cumulative fiscal 1987
program for sales of U.S. agricultural products to Algeria to
464.0 mln dlrs from 380.0, it said.
    To be eligible for the credit guarantees, all sales must be
registered with the CCC by September 30, and shipments
completed by December 31, 1987, it said.


.I 10549
.C
wheat;grain;corn;sorghum;
.W
PL 480 COMMODITIES FOR HONDURAS -- USDA.
    WASHINGTON, March 16 - The United States has signed a
Public Law 480 agreement with Honduras to provide for the sale
of 12.0 mln dlrs worth of U.S. agricultural commodities, the
U.S. Agriculture Department said.
    The agreement, signed March 11, provides for the sale of
about 75,000 tonnes of wheat/wheat flour worth 8.5 mln dlrs,
15,000 tonnes of corn/sorghum worth 1.5 mln dlrs and 6,000
tonnes of tallow worth 2.0 mln dlrs, the department said.
    The commodities will be supplied in the current fiscal
year, ending September 30, and sales will be by private U.S.
traders on a competitive bid basis.
    Purchase authorizations will be announced as issued.


.I 10550
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 150,000 TONNES CORN  SOLD TO UNKNOWN DESTINATIONS FOR 1986/87.
Blah blah blah.

.I 10552
.C
wheat;grain;
.W
SENS. DANFORTH, BOND ASK TARGETED 0/92 MEASURE.
    WASHINGTON, March 16 - Missouri Republican Senators John
Danforth and Christopher Bond have introduced a bill that would
allow wheat and feedgrain producers along the Mississippi and
Missouri Rivers hurt by flooding last year to collect at least
92 pct of their deficiency payments this year without planting.
    Danforth aide Austin Schlick said the bill was similar to a
provision included in a House Agriculture Committee-passed
emergency disaster assistance bill scheduled to be taken up by
the House tomorrow.
    Schlick said flooding destroyed a number of levees along
the two rivers last October, leaving farmland there vulnerable
to further damage this year.


.I 10553
.C
grain;barley;
.W
CCC ACCEPTS BONUS BID ON BARLEY TO CYRPUS.
    WASHINGTON, March 16 - The Commodity Credit Corporation
(CCC) has accepted a bid on an export bonus to cover the sale
of 8,000 tonnes of barley to Cyprus, the U.S. Agriculture
Department said.
    The barley is for shipment May 5-20 and the bonus of 39.32
dlrs per tonne was made to Harvest States Cooperatives, the
department said.
    The bonus will be paid in the form of commodities from the
inventory of CCC stocks.
    The department said an additional 42,000 tonnes of U.S.
barley are still available to Cyprus under the Export
Enhancement Program initiative announced on August 26, 1986.


.I 10554
.C
acq
.W
LYNCH CORP <LGL> UNIT BUYS TELEVISION STATION.
    FAIRFIELD, N.J., March 16 - Lynch Corp subisidiary Lynch
Entertainment Corp said it formed a general partnership called
Coronet Communications Co, which has acquired WHBF-TV station,
in Rock Island, Ill.
    The company said the price for the station, a CBS
television network affiliate, was 20 mln dlrs. The company also
said the other partner is Lombardo Communications Inc, a
wholly-owned corporation of Phillip Lombardo.
    Lynch said it will pursue further acquisitions of media and
entertainment entities with emphasis on broadcasting and cable
television operations.


.I 10556
.C
acq
.W
SCHLUMBERGER <SLB> ENDS PACT TO SELL FAIRCHILD.
    NEW YORK, March 16 - Schlumberger Ltd said it terminated an
agreement in principle for Fujitsu Ltd to buy 80 pct of its
Fairchild Semiconductor operations.
    The company said the rising political controversy in the
U.S. concerning the venture made it unlikely that the sale of
the Fairchild stake could be completed within a reasonable
time.
    The sale has been opposed by the U.S. Commerce Department
and the U.S. Defense Department, in part on national security
grounds.
    The company said termination of the agreement opened other
possibilities, including a possible leveraged buyout of the
semiconductor maker by Fairchild management.
    In the interim, Fairchild would continue its ongoing
business within Schlumberger, the oilfield services concern
said.
    Last October, Schlumberger announced the sale of the
Fairchild stake and said it would take a 200 mln dlrs charge in
the fourth quarter from the sale. The company ended up
recording special charges of 2.1 billion dlrs in the fourth
quarter, leading to a loss of 2.02 billion dlrs for the year.
    Schlumberger never announced a price for the sale, but
industry analysts have estimated the value of the deal at about
200 mln dlrs.
    The proposed sale was under antitrust review by the U.S.
Justice Department. Additionally, Commerce Secretary Malcolm
Baldridge and other U.S. officials have voiced reservations
about the transaction since it was announced.
    Government officials have expressed concern that the sale
could reduce the competitiveness of U.S. chip makers by putting
key advanced technology into Japanese hands.
    New, high-technology semiconductors are used in
supercomputers, which are faster and more powerful than
existing computers.
    Schlumberger is an oilfield services company controlled by
French interests and headquartered in New York. Fujitsu Ltd is
a computer and telecommunications company based in Japan.


.I 10557
.C
earn
.W
HENLEY GROUP <HENG> SETS FISHER DISTRIBUTION.
    LA JOLLA, Calif., March 16 - Henley Group Inc said it
declared a special dividend distribution of one Fisher
Scientific Group Inc share for every 16 Henley shares.
    Previously, it said it would pay one fisher share for every
20 outstanding, but it changed the ratio because of the
reduction in its outstanding shares to 109 mln from 129 mln.
    It said the distribution of about 20 pct of Fisher's common
stock will be made April six to holders of record March 26.
Fisher will trade on NASDAQ under the symbol <FSHG>.


.I 10560
.C
earn
.W
GENCORP <GY> 1ST QTR OPERATING EARNINGS ROSE.
    AKRON, Ohio, March 16 - GenCorp said its first quarter
earnings from operations rose four pct as sales increased six
pct to 650 mln dlrs from 614 mln a year earlier.
    However, the company reported net income declined to 17 mln
dlrs, or 77 cts a share, in the quarter ended February 28 from
19 mln dlrs, or 84 cts a year earlier. This year's net included
700,000 dlrs from the sale of assets while last years was
increased 3.0 mln dlrs by such sales.
    GenCorp said lower operating profits for the tire and
plastics and industrial products segments were essentially
offset by higher wallcovering results.


.I 10561
.C
wheat;grain;
.W
NEW EEP DURUM WHEAT OFFER TO ALGERIA -- USDA.
    WASHINGTON, March 16 - U.S. exporters will have the
opportunity to sell an additional 300,000 tonnes of U.S. durum
wheat to Algeria under the Export Enhancement Program, EEP, the
U.S. Agriculture Department said.
    The department said the sales will be subsidized with
commodities from the Commodity Credit Corporation, CCC,
inventory and the subsidy will enable U.S. exports to compete
at commercial prices in the Algerian market.
    Algeria has already purchased 300,000 tonnes of U.S. durum
wheat under a previous export enhancement initiative announced
November 10, 1986, it said.
    Details of the latest initiative, including an invitation
for offers from exporters, will be issued in the near future,
the department said.


.I 10563
.C
earn
.W
MCCORMICK AND CO INC <MCCRK> 1ST QTR FEB 28 NET.
    HUNT VALLEY, Md., March 16 -
    Shr 37 cts vs 35 cts
    Net 4,346,000 vs 4,202,000
    Revs 232.0 mln vs 223.2 mln


.I 10565
.C
acq
.W
******TWA SAID IT DOES NOT INTEND TO SEEK CONTROL OF USAIR, ACQUIRE MORE STOCK AT THIS TIME.
Blah blah blah.

.I 10567
.C
earn
.W
TELEQUEST INC <TELQ> 4TH QTR DEC 31 LOSS.
    SAN DIEGO, Calif., March 16 -
    Shr loss nine cts vs profit 35 cts
    Net loss 299,000 vs profit 1,025,000
    Sales 9,704,000 vs 9,659,000
    Avg shrs 3,792,138 vs 2,892,138
    Year
    Shr profit one ct vs profit 58 cts
    Net profit 45,000 vs profit 1,705,000
    Sales 25.4 mln vs 17.8 mln
    Avg shrs 3,567,138 vs 2,892,138


.I 10568
.C
veg-oil
.W
U.S. EEP VEG OIL PROPOSALS STILL UNDER REVIEW.
    WASHINGTON, March 16 - U.S. Agriculture Department
proposals to offer 260,000 tonnes of subsidized vegetable oil
to four countries are still under consideration by an
interagency trade policy group, a USDA official close to the
group said.
    The official, who asked not to be identified, dismissed a
report circulating in markets today that the interagency trade
policy review group had rejected the proposals.
    Under the proposals, USDA would offer vegetable oil under
the export enhancement program, EEP, to four countries,
including 80,000 tonnes to Turkey and 60,000 tonnes to Algeria,
Morocco and Tunisia, industry sources said.
    The proposals "are still under review" by the interagency
working group, the USDA official said.


.I 10570
.C
earn
.W
AMCAST INDUSTRIAL CORP <ACST> 2ND QTR NET.
    DAYTON, Ohio, March 16 - Qtr ends March One
    Shr profit 10 cts vs loss 2.20 cts
    Net profit 687,000 vs loss 14.5 mln
    Revs 68.3 mln vs 54.8 mln
    Avg shrs 7,018,000 vs 6,577,000
    Six mths
    Shr profit 38 cts vs loss 1.95
    Net profit 2,596,000 vs loss 12.8 mln
    Revs 129.9 mln vs 113.3 mln
    Avg shrs 6,964,000 vs 6,568,000
    NOTE: figures for qtr and year prior include pre-tax
restructuring charge of 22.5 mln.


.I 10571
.C
earn
.W
CHICAGO DOCK AND CANAL <DOCKS> 3RD QTR NET.
    CHICAGO, March 16 - Period ended Jan 31
    Shr 16 cts vs 10 cts
    Net 901,000 vs 562,000
    Nine mths
    Shr 1.77 dlrs vs 19 cts
    Net 9,886,000 vs 1,122,000
    NOTE: Full name is Chicago Dock and Canal Trust
    1987 nine months earnings include gain from dispositions of
real estate of 7,666,000 dlrs, or 1.33 dlrs a share


.I 10572
.C
acq
.W
MCGRAW HILL <MHP> BUYS HARPER/ROW <HPR> UNIT.
    NEW YORK, March 16 - McGraw-Hill Inc said it bought
<Medecines et Sciences Internationales SA>, a French Healthcare
publisher, from Harper and Row Publishers Inc.
    The sum of the deal was not disclosed.
    It said the French company publishes original titles by
French authors, as well as translations of American, British
and German Medical books. The company will be consolidated with
McGraw-Hill France, it said.


.I 10573
.C
earn
.W
INFINITE GRAPHICS <INFG> SEES HIGHER 4TH QTR.
    CHICAGO, March 16 - Infinite Graphics Inc expects earnings
for the fourth quarter ending April 30 to exceed the 127,587
dlrs, or seven cts a share posted a year ago, Chairman Clifford
F. Stritch Jr. told a meeting of financial analysts.
    Stritch also said the company's annual revenues should
exceed 6.0 mln dlrs, up from 4.1 mln dlrs in the previous
fiscal year.
    He said the company, which markets advanced computer-aided
engineering, design and manufacturing systems, plans to double
its dealers to 50 during the coming fiscal year.


.I 10574
.C
acq
.W
SUBURBAN BANCORP <SUBBA> UNIT WINS JUDGMENT.
    PALATINE, ILL, March 16 - Suburban Bancorp said a Cook
County Circuit Court ruled in favor of one of its companies,
Suburban Bancorp of Bartlett (formerly Bartlett State Bank) on
claims against six former directors.
    Suburban Bank of Barlett claimed that the former directors
breached their fiduciary duties and were negligent in opposing
Suburban Bancorp's tender offer in January 1985, costing
Bartlett State Bank several hundred thousand dollars.
    It said a hearing to determine the amount of damages owed
to the bank was set for April 21.


.I 10575
.C
earn
.W
AFFILIATED PUBLICATIONS INC <AFP> SETS PAYOUT.
    BOSTON, March 16 -
    Qtrly div eight cts vs eight cts prior
    Pay June 1
    Record May 15


.I 10576
.C
earn
.W
FRANKLIN RESOURCES INC <BEN> QTLY DIVIDEND.
    SAN MATEO, Calif., March 16 -
    Shr six cts vs six cts prior qtr
    Pay April 10
    Record March 27



.I 10577
.C
acq
.W
******TWA FILES APPLICATION SEEKING RIGHT TO RAISE USAIR STAKE TO 25 PCT.
Blah blah blah.

.I 10578
.C
acq
.W
COOPERVISION HAS 6.5 PCT OF COOPER LASER <ZAPS>.
    WASHINGTON, March 16 - CooperVision Inc <EYE> told the
Securities and Exchange Commission it has acquired 1,420,500
shares of Cooper LaserSonics Inc, or 6.5 pct of the total
outstanding common stock.
    CooperVision said it bought the stake for 2.9 mln dlrs for
investment purposes.
    It said it might buy additional Cooper LaserSonics common
shares, but said it does not plan to boost its stake above 10
pct of the total outstanding.


.I 10580
.C
acq
.W
DNA MEDICAL <DNAM> SIGNS PACT FOR STOCK SALE.
    SALT LAKE CITY, March 16 - DNA Medical Inc said Walter G.
Mize had bought about 9,400,000 shares, or about 33 pct of
DNA's outstanding stock, for 100,000 dlrs cash.
    Under an agreement with Mize, DNA said he will also become
chairman, and may, at his option, expand the board to provide
him equal representation with the current board.
    DNA also said it will submit a proposal at its annual
meeting for it to acquire three companies owned by Mize,
<Heritage Lite Meat Corp>, <National Lean Beef Corp> and
<Heritage Cattle <Corp>. DNA said the total value of the
transactions is 700,000 dlrs.
    DNA said that when the transactions are approved by its
shareholders, it will issue additional shares of its common so
that Mize will own 80 pct of its issued and outstanding stock.
    DNA said Mize will replace its current chairman, Donald
Holbrook, who will remain on the board.
    The company also said it will continue in the medical
development business as "long as it is deemed to be
advantageous."


.I 10582
.C
earn
.W
<CANADIAN ROXY PETROLEUM LTD> YEAR NET.
    Calgary, Alberta, March 16 -
    Shr profit five cts vs loss 23 cts
    Net profit 916,000 vs loss 2,886,000
    Revs 20.0 mln vs 28.2 mln


.I 10583
.C
acq
.W
CITYFED <CTYF> TO SELL CONSUMER LENDING OFFICES.
    PALM BEACH, Fla., March 16 - CityFed Financial Corp said
its City Federal Savings Bank has a preliminary agreement to
sell 14 consumer lending offices to <Goldome FSB> for
undisclosed terms.
    Goldome is the largest mutual savings bank in the U.S.
    CityFed said it decided to sell its consumer lending
offices outside its main market areas in New Jersey and Florida
to concentrate its resources to these markets.
    The offices being sold operate under the name of City
Consumer Serices Inc in Arizona, Colorado, Illinois, Maryland,
New Mexico, Oregon and Virginia.


.I 10584
.C
acq
.W
TRANS WORLD AIRLINES <TWA> FILES ON USAIR <U>.
    NEW YORK, MARCH 16 - Trans World Airlines said it told the
Securities and Exchange Commission it does not intend to seek
control of USAir Group or to acquire more of its stock at this
time.
    TWA also said it is amending its application with the
Department of Transportation to seek control of USAir.
    The amendment said TWA reserves the right to seek control
of USAir in the future, that it intends to maintain its 15 pct
stake, and that it also is seeking the flexibility to acquire
up to 25 pct of USAir.
    TWA said all USAir stock owned by it would be in a voting
trust and voted in the same proportion as the vote of all other
USAir shareholders.
    TWA filed a 13-D with the Securities and Exchange
Commission, reporting its holding of 4,023,200 shares of USAir.
TWA has said the stake amounts to about 15 pct.
    TWA also said that by order of the federal court in
Pittsburgh, it is temporarily barred from buying additional
shares of USAir pending a hearing March 23 to reconsider
USAir's application to expand the temporary restraining order
to a preliminary injunction.


.I 10585
.C
acq
.W
FIRST BANK <FBS> AGREES TO SELL ANOTHER BANK.
    MINNEAPOLIS, March 16 - First Bank System Inc said it has
found a potential buyer for First Bank Luverne and its office
in Pipestone, Minnesota.
    The bank holding company said 215 Holding Co, a corporation
controlled by the family of the late Robert Short, will buy
First Bank Luverne. The bank has 59.2 mln dlrs in assets.
    First Bank, which announced plans in 1985 to restructure
its banking assets by offering to sell 28 of its banks with a
total of 45 offices, said agreements have now been signed for
43 of these offices.


.I 10588
.C
acq
.W
AMERICAN INTERNATIONAL PETROLEUM TO BUY ASSETS.
    NEW YORK, March 16 - American International Petroleum Corp
<AIPN> said it agreed to acquire for one mln dlrs the assets of
a western Louisiana oil and gas company. American International
would not identify the company.
    American said assets included nine leases totalling 2,600
acres, various working interests in 15 oil and gas wells on
that property, all equipment and machinery necessary for
operation, and a 50 pct interest in a nine-mile gas pipeline.



.I 10590
.C
earn
.W
THREE D DEPARTMENTS INC <TDD> 2ND QTR JAN 31.
    EAST HARTFORD, Conn., March 16 -
    Shr four cts vs 15 cts
    Net 132,851 vs 501,537
    Revs 10 mln vs 15.5 mln
    Six mths
    Shr 12 cts vs 24 cts
    Net 409,383 vs 812,045
    Revs 19.4 mln vs 29.1 mln


.I 10591
.C
earn
.W
<CONSOLIDATED PIPE LINES CO> YEAR NET.
    CALGARY, Alberta, March 16 -
    Shr 1.19 dlrs vs 1.38 dlrs
    Net 1,499,234 vs 1,713,941
    Revs 23.2 mln vs 10.3 mln


.I 10592
.C
earn
.W
NEWCOR INC <NEW> 1ST QTR JAN 31 NET.
    TROY, MICH., March 16 -
    Shr profit four cts vs loss 58 cts
    Net profit 119,000 vs loss 1,629,000
    Sales 18.4 mln vs 17.0 mln


.I 10593
.C
earn
.W
SKYLINE CORP <SKY> 3RD QTR FEB 28.
    ELKHART, IND., March 16 -
    Shr 13 cts vs seven cts
    Net 1,487,000 vs 778,000
    Sales 64.4 mln vs 58.3 mln
    Nine mths
    Shr 66 cts vs 55 cts
    Net 7,388,000 vs 6,127,000
    Sales 223.0 mln vs 222.2 mln
    NOTE: 1987 quarter and nine month earnings includes a gain
on sale of idle facilities of 406,000 dlrs, or four cts a share
    1986 nine months earnings include gain on sale of idle
facilities of 377,000 dlrs, or three cts a share


.I 10595
.C
earn
.W
TECH DATA CORP <TECD> 4TH QTR ENDS JAN 31 NET.
    CLEARWATER, Fla, March 16 -
    Shr 24 cts vs 13 cts
    Net 771,000 vs 314,000
    Revs 24.1 mln vs 11.3 mln
    Avg shrs 3,234,000 vs 2,426,000
    12 mths
    Shr 65 cts vs 38 cts
    Net 1,983,000 vs 904,000
    Revs 71.5 mln vs 37.7 mln
    Avg shrs 3,035,000 vs 2,371,000


.I 10596
.C
crude;fuel;
.W
SENATE COMMITTEE MAY LOOK AT FUEL TAX PROPOSALS.
    WASHINGTON, March 16 - The Senate budget committee sits
down tomorrow to start drafting a fiscal 1988 budget, with the
budget writers expected to look at several proposals for fuel
taxes and other tax options to cut the budget.
    In a briefing book for the drafting sessions, a number of
revenue raising tax options are proposed, including a five dlrs
a barrel fee on domestic and imported oil, a fee just on
imported oil, and a broad based tax on domestic energy
consumption based on five pct of value.
    Other proposals include various excise taxes and
combinations of import surcharges or tariffs, including a 10
pct import across the board import surcharge that would raise
22 billion dlrs next year alone, more in later years.
    The committee, however, will only include revenue numbers
in its proposed budget with the actual revenue decisions left
to the House and Senate tax-writing committees.
     The committee will draft a budget which its chairman, Sen
Lawton Chiles, a Florida Democrat, said he hopes would raise at
least 18 billion dlrs in revenues, or about half the minimum 36
billion dlr deficit reduction he has in mind.
    The House Budget Committee also plans to start drafting a
separate budget plan later this week, which would have to be
reconciled with the Senate version. The final budget would be
the fiscal 1988 spending and revenue blueprint.



.I 10597
.C
trade
.W
BRAZIL TRADE SURPLUS RISES IN FEBRUARY.
    RIO DE JANEIRO, March 16 - The trade surplus doubled in
february to 261 mln dlrs from January's 129 mln, but was  below
the 628 mln of February 1986, official figures show.
    The director of the Banco do Brasil's foreign trade
department (CACEX), Roberto Fendt, told reporters the upturn in
February confirmed a rising trend in exports, which totalled
1.53 billion dlrs against 1.26 billion in January and, after
excluding coffee and oil derivitives, was only slightly below
the same month last year.
    Coffee earnings were down to 110 mln dlrs against 295 mln
in February 1986 because of lower prices, he added.
    Fendt said that although the February results were lower
than the average expected for the rest of the year, the
government's target of an eight-billion-dlr surplus for 1987
should be achieved. This would compare with a 1986 surplus of
9.5 billion dlrs.
    Exports this year are expected to total 22.5 billion dlrs
and imports 14.5 billion, he added. In 1986 exports totalled
22.4 billion dlrs and imports 12.9 billion.
    Fendt said the rise in imports in February to 1.27 billion
dlrs from 1.12 billion in February last year was in line with
government plans to foster economic growth.
    Fendt said that imports were running at levels well above
the traditional average for Brazil.
    In the first two months of the year imports, excluding oil
and wheat totalled, 1.8 billion dlrs against 1.47 billion in
the same 1986 period.
    This rise in import demand reflected the needs of Brazilian
industry to equip to raise production and is perfectly
compatible with the government's program for economic growth,
Fendt added.


.I 10599
.C
acq
.W
ARMTEK <ARM> UNIT LEVERAGED BUYOUT COMPLETED.
    GREENWICH, Conn., March 16 - Condere Corp, formed by former
managers of Armtek Corp, said it completed the acquisition of a
tire plant and other assets of Armtek for undisclosed terms.
    In addition to a tire manufacturing plant, Condere bought
S. and A. Truck Tire Sales and Service Corp, which operates 51
Sears Truck Tire Sales and Service Centers through a licensed
agreement with Sears Roebuck and Co <S>.
    The plant will supply tires to Armtek's Armstrong Tire Co
as well as to several Sears Centers. Condere said it expects
first year revenues to be 90 mln dlrs.


.I 10600
.C
earn
.W
HORIZON BANCORP <HZB> SETS REGULAR PAYOUT.
    MORRISTOWN, N.J., March 16 -
    Qtrly div 34 cts vs 34 cts prior
    Pay May 1
    Record April 15


.I 10601
.C
earn
.W
******ASHLAND OIL CHAIRMAN SEES LOSS FROM OPERATIONS IN THE SECOND FISCAL QUARTER.
Blah blah blah.

.I 10602
.C
earn
.W
HENLEY <HENG> TO ISSUE SUBSIDIARY'S SHARES.
    LA JOLLA, Calif., March 16 - Henley Group Inc said it plans
to issue 20 pct of the common stock of its Fisher Scientific
Group Inc unit to Henley Group shareholders.
    The company said it intends to issue one share of Fisher
Scientific for each 16 Henley shares held to shareholders of
record March 26. The distribution is scheduled for April six,
the company also said.
    It said the Fisher shares will trade in the
over-the-counter market under the symbol FSHG.


.I 10603
.C
acq
.W
SCHLUMBERGER <SLB> MAY HAVE ALTERNATE BUYER.
    By Lawrence Edelman, Reuters
    New York, March 16 - Schlumberger Ltd most likely has an
alternate buyer lined up for its Fairchild Semiconductor unit,
Wall Street analysts said.
    "I think its clear that in cancelling its agreement with
Fujitsu, Schlumberger has signaled that it has another deal in
the works," said Paul Johnson, a semiconductor analyst with
L.F. Rothschild.
    "There are unquestionably other buyers out there," added
Kidder Peabody analyst Adam F. Cuhney. "A lot of companies have
looked at Fairchild and would be willing to buy it."
    Among the companies that would be interested in bidding for
Fairchild are Advanced Micro Devices <AMD>, Sunnyvale, Calif.,
and LSI Logic Corp <LLSI>, Milpitas, Calif., industry analysts
said.
    Top U.S. chipmakers like National Semiconductor Corp <NSM>,
Texas Instruments Inc <TXN> and Motorola Inc <MOT> might also
seek to buy Fairchild, but could possibly run into antitrust
problems, the analysts added.
    Moreover, Fairchild's management is thought to be
considering proposing a leveraged buyout of the Cupertino,
Calif., company, analysts said.
    In a brief statement announcing the termination of the
agreement with Fujitsu, Schlumberger said the decision opened
up other possibilities, including a possible buyout by
Fairchild management.
    The company said it ended the deal, in which Fujitsu would
have bought 80 pct of Fairchild for an estimated 200 mln dlrs,
because rising opposition to the deal by the Reagan
administration made it unlikely that the sale could be
completed within a reasonable period of time.
    Analysts questioned this explanation, however, arguing that
the companies did not need government approval to complete the
transaction. Both Schlumberger and Fujitsu are foreigned-owned
companies.
    "Schlumberger would not have terminated the deal because
the U.S. government didn't want it," said Johnson of L.F.
Rothschild.
    A spokesman for Schlumberger declined to elaborate on the
company's news release.
    He said only that the company was reviewing a number of
possible alternatives for the Fairchild unit.
    Officials at Fairchild and Fujitsu were not immediately
available for comment.
    Analysts noted the significance of the government's
apparent success in preventing Fujitsu from taking control of
Fairchild.
    Administration officials, including Commerce Secretary
Malcolm Baldrige and Defense Secretary Caspar Weinberger,
feared that the sale to Fujitsu would lead to Japanese control
of key semiconductor technology for supercomputers and military
weapons systems.
    "The government really stood up for the semiconductor
industry," said Johnson of L.F. Rothschild. "That, I think, is
the real significance of this."
    Consequently, analysts said, the Japanese government might
now feel more pressure to address U.S. complaints about
Japanese chipmakers' violation of the semiconductor trade
agreement signed last summer.


.I 10605
.C
trade
.W
BRAZIL'S TRADE SURPLUS DOUBLED IN FEBRUARY.
    RIO DE JANEIRO, March 16 - Brazil's trade surplus doubled
in February to 261 mln dlrs from January's 129 mln but was well
below the 628 mln dlrs of February last year, official figures
show.
    Director of the Banco do Brasil's foreign trade department
(CACEX), Roberto Fendt, told reporters the upturn in February
confirmed a rising trend in exports which totalled 1.53 billion
dlrs against 1.26 billion in January and, after excluding
coffee and oil derivatives, was only slightly below the same
month last year.
    Coffee earnings were down to 110 mln dlrs against 295 mln
in February, 1986, because of lower prices, he added.
    Fendt said although the February results were lower than
the average expected for the rest of the year, the government's
target of an eight billion dlr surplus for 1987 should be
achieved. This would compare with a 1986 surplus of 9.5 billion
dlrs.
    Exports this year are expected to total 22.5 billion dlrs
and imports 14.5 billion, he added. In 1986 exports totalled
22.4 billion dlrs and imports 12.9 billion.
    Fendt said the rise in imports in February to 1.27 billion
dlrs from 1.12 billion in February last year was in line with
government plans to foster economic growth.
    Fendt said imports were running at levels well above the
traditional average for Brazil.
    Imports in the first two months of the year, excluding oil
and wheat, totalled 1.8 billion dlrs against 1.47 billion in
the same 1986 period.
    This rise reflected industry's need for equipment to raise
production and is perfectly compatible with the government's
program for economic growth, Fendt added.


.I 10606
.C
acq;strategic-metal;nickel;
.W
PENN CENTRAL <PC> SELLS U.K. UNIT.
    VALDOSTA, GA., March 16 - SAFT, a unit of Cie Generale
d'Electricite of France, said it bought U.K.-based Alcad Ltd
from Penn Central Corp's Marathon Manufacturing Cos Inc.
    Terms of the deal were not disclosed.
    Alcad is one of the world's largest producers of
pocket-plate nickel-cadmium storeage batteries, used in
industrial and railroad applications to start engines and as
light sources, SAFT said.
    SAFT said it expects to add 400 jobs at the U.K.
operations.


.I 10607
.C
earn
.W
<SILICON VALLEY BANCSHARES> SETS STOCK PAYOUT.
    SANTA CLARA, Calif., March 16 - Silicon Valley Bancshares
said it declared a five pct stock dividend, payable May 1 to
shareholders of record April 1.


.I 10614
.C
earn
.W
DI GIORGIO CORP <DIG> QTLY DIVIDEND.
    SAN FRANCISCO, March 16 -
    Shr 16 cts vs 16 cts prior qtr
    Pay May 15
    Record April 17


.I 10615
.C
oilseed;soybean;
.W
SOYBEAN GROUPS MEET WITH LYNG TO DISCUSS LOAN.
    WASHINGTON, March 16 - A high-level meeting last week which
included the Secretary of Agriculture and other senior  USDA
officials, along with leaders of the major soybean lobbying
groups, failed to reach any decision on what should be done
about the soybean loan level, participants at the meeting told
Reuters.
    "We didn't feel a lot was accomplished last week, but we
were delighted to meet with the Secretary, and he didn't close
the door on anything," a member of the soybean delegation said.
    At issue is the current soybean loan and the fact that at
the present level of 4.77 dlrs (without Gramm-Rudman
reductions) it encourages foreign soybean production by making
soybeans more profitable to grow than corn.
    But while recognizing that soybeans are priced too high in
relation with corn, soybean groups have pledged their support
to maintaining current price supports for soybean growers.
    Leaders of the American Soybean Association and the
National Soybean Processors Association offered specific loan
options to USDA Secretary Lyng in last week's meeting, but
participants would not reveal what those options were.
    "There were no surprises in our package," one participant
said. Bandied about for several weeks has been the idea of
offering producers soybean loans partially in cash and in
certificates.
    The most prevailing scheme would be to pay a 4.77 loan with
77 cts worth of soybean-specific certificates which would not
have to be paid back and the remaining four dlrs in cash.
    This would have the effect of lowering the world price,
maintaining domestic support levels and reducing the
government's soybean inventory.
    A marketing loan for soybeans was not discussed at last
week's meeting, participants said.
    One member of the soybean delegation said that the meeting
was a "listening session" for USDA, and that the proposals will
now be studied further by the Department.
    USDA officials, however, would not commit to any time
frame. Participants in the meeting do not look for changes in
the soybean loan to be announced in the near future.
    "USDA is very sensitive about saying anything that could
influence the market, so the Secretary was very non-committal,"
a participant said.


.I 10619
.C
heat
.W
U.S. HEATING OIL FUTURES UP SHARPLY IN APRIL.
    NEW YORK, March 16 - A supply shortage of number two oil in
New York for prompt delivery boosted the April heating oil
contract on U.S. energy futures, traders said.
    Crude oil futures followed but gasoline futures lagged.
April heating oil ended 1.24 cts higher to 51.65 cts a gallon,
while April crude settled 28 cts higher at 18.64 dlrs.
    "The rally was led by spot month heating oil contract,
which seemed to move higher because of tigtened prompt
deliveries in New York Harbor," said James Ritterbusch, vice
president at Paine Webber Inc in Chicago.
    April gasoline was 0.28 cent higher at 53.15 cts a gallon.
    Ritterbusch said the market also found support from a
report in the Middle East Economics Survey that said that OPEC
oil output was down to about 14 mln barrels per day in the
second week of March.
    "There was not a lot of interest to sell the market because
of belief in OPEC," said Richard Redoglia, a broker with
Merrill Lynch Futures Inc.
    Redoglia and Ritterbusch said April heating oil could
continue to rally above 53 cts a gallon, while crude futures
could test 19 dlrs a barrel before profit-taking stunts the
move higher.


.I 10620
.C
earn
.W
TRANSAMERICA INCOME <TAI> MONTHLY DIVIDEND.
    LOS ANGELES, March 16 -
    Shr 19 cts vs 19 cts prior period
    Pay April 15
    Record March 31
    Note: Full name Transamerica Income Shares Inc.


.I 10621
.C
acq
.W
MCDERMOTT <MDR> SAYS STAKE VIOLATES LAW.
    NEW ORLEANS, March 16 - McDermott International Inc said
the purchase of a 5.4 pct block of its stock was an apparent
violation of the laws of Panama, its country of incorporation.
    The company said a detailed disclosure of an acquisition
offer must be made to the Panamanian National Securities
Commission or to the target's board before acquiring more than
five pct stake.
    It said transfers of securities in violation of these
Panamanian regulations are invalid.
    The company was not immediately available to say who had
acquired the 5.4 pct block of stock.


.I 10623
.C
acq
.W
ICAHN SAYS HE IS TARGET OF SEC INVESTIGATION.
    WASHINGTON, March 16 - Corporate raider Carl Icahn
acknowledged that he is one of the targets of an investigation
by the Securities and Exchange Commission into possible
violations of securities laws.
    Icahn, who heads and controls Trans World Airlines Inc
<TWA>, made the acknowledgement in a filing TWA was required to
make with the SEC disclosing its 14.8 pct stake in USAir Group.
    The SEC issued a formal order launching the private
investigation on Nov 12, 1986, Icahn said in the SEC filing.
    The order empowers SEC investigators to try to find out
whether any persons, including Icahn, violated securities laws
and related rules, Icahn said.
    Specifically, the probe is examining the acquisition and
subsequent sale of more than five pct of the stock of certain
unspecified companies, he said.
    Federal law requires individuals or groups of individuals
who have made shareholder agreements, to disclose stakes in
companies of at least five pct within 10 days.
    Icahn has acknowledged that he has been subpoenaed in
connection with SEC probes, but this is the first time he has
disclosed that he is among those being investigated.
    By making the disclosure in a filing with the SEC, which is
obviously already aware of its own probe, Icahn was also
alerting current and potential shareholders of TWA.
    It is not uncommon for companies which are aware that they
or their officers are the targets of government probes to
acknowledge the existence of the otherwise secret
investigations to fulfill their legal disclosure requirements
to their shareholders.
    Icahn said the SEC is looking into whether he and others
whom he did not name violated securities laws by acquiring and
selling more than five pct of a company's stock.
    SEC investigations into those kinds of possible securities
law violations have been spawned by the agency's widening probe
into the Wall Street insider trading scandal, according to
published reports.
    Making late filings of 13D forms, which disclose the amount
of stock over five pct an investor has in a company, or making
no filing at all could indicate a scheme to "warehouse" shares
of stock.
    In a warehousing scheme, a group of investors acting in
concert would each amass stock in the company without
disclosing that they have an agreement among them.
    By failing to disclose that they are acting together the
market is unware of the amount of stock of a company that is
controlled by a group acting in concert.
    Last year, the SEC charged members of the wealthy Belzberg
family of Canada with taking part in a warehousing scheme while
it was accumulating stock in Ashland Oil Inc.


.I 10624
.C
earn
.W
SMITHKLINE <SKB> AIMS FOR 10 PCT EARNINGS RAISE.
    PHILADELPHIA, March 16 - SmithKline Beckman Corp said it is
pursuing a three-point stragey that will achieve a 10 pct
annual increase in operating earnings throughout the remainder
of the decade.
    In 1986, SmithKline earned 521.1 mln dlrs or 6.78 dlrs per
share on revenues of 3.6 billion dlrs.
    The company said in its annual report that its
nonpharmaceutical business will play a major role in meeting
its earnings growth target, and will in fact grow faster than
its pharmaceutical business.
    SmithKline, whose major product is the antiulcer medication
Tagamet, said in the report that it intends to improve earnings
from existing products, expand its product portfolio and
optimize its financial resources.
    To bolster its position in the antiulcer market, in which
Tagamet has met stiff competition, SmithKline said its strategy
to develop an over-the-counter version of Tagamet is bolstered
by two joint ventures, one with <Wellcome PLC>, and one pending
venture in Japan.
    SmithKline also said its Allergan Inc eye and skin care
products division can be a one billion dlr organization in the
next five years that can grow at more than seven to 10 pct
annually.
    "Nondilutive acquisitions are a real possibility," Gavin
Herbert, president of the eye and skin care product group said
in the report. In 1986, Allergan had worldwide sales of 433 mln
dlrs.
    It said its Smith Kline and French Laboratories
pharmaceuticals unit, with 1986 sales of 1.9 billion dlrs, will
file for Food and Drug Administration marketing approval for a
number of cardiovascular agents, including tissue plasminogen
activator, over the next two years.
    It also said SK and F's U.S. sales force will be 20 pct
larger in 1987, with more than 1,000 sales personnel.
    Smith Kline also said its small clinical laboratory testing
unit, with 1986 sales of 373 mln dlrs, performs 24 mln tests a
year, and sees increases in employee drug testing as well as in
testing for the AIDS antibody.
    Smith Kline said that depending on its share price and the
cost of money, it may buy back more shares. In the last three
years, it has bought back about 25 pct of its shares.
    SmithKline begins the year with a new management team,
including its new chief operating officer George Ebright.


.I 10625
.C
earn
.W
ASHLAND OIL <ASH> SEES 2ND QTR OPER LOSS.
    ASHLAND, KY., March 16 - Ashland Oil Inc said it expects to
report a loss from operations in the second quarter.
    The company also said it expects to report a 10 mln dlrs
net gain in the quarter from excess pension funds used to pay
down debt. "However, it is difficult to determine now whether
this gain will be sufficient to offset the expected operating
loss," the company said in a statement. A company spokesman
would not elaborate.
    The company's Ashland Petroleum Co unit operated at a loss
in January and February since it was unable to raise product
prices enough to recover higher crude oil costs, Ashland said.
    Although Ashland Petroleum and SuperAmerica, a retail
marketing operation, are having a difficult quarter, the
company's Valvoline, Ashland Chemical and coal businesses are
expected to report good results for the quarter ended March 31.
    In the year-ago quarter, Ashland had income from operations
of 93.8 mln dlrs before corporate and interest expenses, taxes,
equity income and other items.
    Net income in the quarter was 39.4 mln dlrs or 1.12 dlrs a
share on sales of 1.78 billion dlrs.


.I 10626
.C
acq
.W
AMERITRUST <AMTR> SELLS TWO MLN SHARES.
    CLEVELAND, March 16 - Ameritrust Corp said it sold two mln
shares of its common stock to an investment group named
Clevebaco Ltd Partnership.
    The partnership is controlled by Alfred Lerner, and a
subsidiary of the Progressive Corp <PROG> is the limited
partner, according to the company.
    Ameritrust said it was advised that the Clevebaco group has
filed an application with bank regulatory authorities seeking
permission to acquire up to an additional three mln shares of
Ameritrust common stock.
    The company said the group indicated to it that it had no
hostile takeover intent toward Ameritrust, and that the
purchase was for investment purposes.


.I 10628
.C
earn
.W
******BANKAMERICA CHAIRMAN SAYS BANK IS TURNING AROUND, HEADING TO PROFITABILITY.
Blah blah blah.

.I 10629
.C
earn
.W
<GENERAL LEASEHOLDS LTD> YEAR NET.
    TORONTO, March 16 -
    Shr 30 cts vs 53 cts
    Net 868,000 vs 728,000
    Revs 7,300,000 vs 6,500,000
    Avg shrs 3,000,000 vs 750,000


.I 10630
.C
trade
.W
BRITISH FARM MINISTER ATTACKS SUBSIDIES.
    INDIANAPOLIS, March 16 - Farm subsidies and protectionist
moves threaten healthy trade on both sides of the Atlantic,
Michael Jopling, British minister of Agriculture, Fisheries and
Food, warned.
    "It would not be sensible to provoke another dispute between
Europe and the United States," Jopling said in remarks prepared
for an evening speech.
    "But some things are clear and they apply on both sides of
the Atlantic. We cannot continue to pile up stocks while world
demand shrinks," he said.
    "Governments must not operate farm policies as if they were
purely domestic affairs with no impact on others. They also
have to recognize that they cannot in the long run develop a
healthy and stable farm sector on the basis of protectionism
and excessive subisdies.
    "And above all, Europe and the United States have too many
common interests to make it worthwhile to engage in trade wars
and competitive export subsidies which end by benefitting no
one." He added, "It is crucial that the United States and the
European Community remain friends."
    Jopling, who is a member of the EC agriculture committee,
was in Indiana to visit several farms prior to talks with U.S.
officials in Washington later this week.
    Jopling also criticized a recent proposal still under
consideration by the EC for a tax on vegetable and fish oils.
    He said his government would oppose such a move because "We
do not think it is correct that a shortage of funds to support
(EC) farmers should be alleviated by raising money at the
consumer's expense."


.I 10632
.C
earn
.W
BANKAMERICA <BAC> CHAIR SAYS BANK TURNING AROUND.
    SAN FRANCISCO, March 16 - BankAmerica Corp Chairman A.W.
Clausen said the bank holding company is turning around and is
back on the road to profitability.
    In a speech to the San Francisco Chamber of Commerce,
Clausen said he was "absolutely convinced" BankAmerica would
return to its position of preeminence.
    "Fundamental to achieving that goal is to continue to
reduce costs dramatically, to get our arms around our loan loss
problems and begin to reduce charge-offs, and to enhance our
revenue generation," Clausen said.
    Clausen said he doubts BankAmerica would be in a position
this year to make any acquisitions or experience any growth.
    He said BankAmerica will continue to reduce staff and
operations, noting that expense growth in 1986 increased only
one pct over 1985 expenses.
    Clausen also said it will continue to phase out its
overseas retail banking and concentrate on wholesale banking,
with emphasis on a premium list of multinational corporations.
  


.I 10633
.C
earn
.W
ROCHESTER TELEPHONE CORP <RTC> SETS DIVIDEND.
    ROCHESTER, N.Y., March 16 -
    Qtly div 66 cts vs 66 cts
    Pay May one
    Record April 15


.I 10634
.C
earn
.W
AUGAT INC <AUG> SETS QUARTERLY DIVIDEND.
    MANSFIELD, Mass., March 16 -
    Qtly div 10 cts vs 10 cts
    Pay April 30
    Record April 10


.I 10635
.C
earn
.W
PHH GROUP <PHH> REGULAR QTLY DIVIDEND.
    HUNT VALLEY, Md., March 16 -
    Qtly div 26 cts vs 26 cts prior
    Pay April 30
    Record April 10


.I 10636
.C
earn
.W
TELCO SYSTEMS INC <TELC> 2ND QTR MARCH ONE LOSS.
    NORWOOD, Mass., March 16 -
    Shr loss nine cts vs profit 14 cts
    Net loss 773,000 vs profit 1,618,000
    Revs 16.3 mln vs 26.7 mln
    Six mths
    Shr loss 56 cts vs profit 27 cts
    Net loss 4,763,000 vs profit 3,398,000
    Revs 29.3 mln vs 49.9 mln


.I 10637
.C
acq
.W
U.S. DECLINES COMMENT ON SCHLUMBERGER<SLB> MOVE.
    WASHINGTON, March 16 - A U.S. Commerce Department spokesman
said the agency would have no comment on Schlumberger Ltd's
announcement that it had terminated an agreement in principle
to sell its Fairchild Semiconductor Corp unit to Fujitsu Ltd.
    Sclumberger had said that controversy surrounding the
venture made it unlikely the sale could be completed any time
soon. The sale was opposed by Commerce and the U.S. Defense
Department, in part on national security grounds.
    Commerce chief spokesman B.J. Cooper said the department
had had no contact with Schlumberger about the deal.
    A Defense Department spokesman said the agency was unaware
of Schlumberger's announcement and would have no immediate
reaction.
    Officials last week told Reuters that Commerce Secretary
Malcolm Baldrige and Defense Secretary Caspar Weinberger had
joined forces to fight the planned sale because it could have
left the U.S. military overly dependent on foreign sources for
vital equipment used in high-technology weapons.
    Administration opposition to the deal also stemmed from
ongoing trade tensions between the United States and Japan,
officials said.


.I 10638
.C
earn
.W
PRECISION TARGET MARKETING INC <PTMI> 3RD QTR.
    NEW HYDE PARK, N.Y., March 16 -
    Shr profit one cts vs loss two cts
    Net 74,000 vs loss 122,000
    Revs 1.7 mln dlrs vs 1.4 mln
    Nine months
    Shr profit five cts vs loss 10 cts
    Net profit 299,000 vs loss 624,000
    Revs 5.1 mln vs 3.7 mln
    NOTE:3rd qtr ended January 31. 1987 3rd qtr and nine months
includes 36,000 dlrs and 129,000 dlrs gains respectively from
tax loss carryforward.


.I 10640
.C
earn
.W
ROYAL BANK/CANADA BRAZIL UNIT SEES GROWTH.
    MONTREAL, March 16 - Royal Bank of Canada's <RY> small
Brazilian commercial bank subsidiary Banco Royal do Canada
(Brasil) S.A. sees opportunities for its own growth with an
expected substantial increase in Brazilian exports to Canada,
Banco Royal president Michael Brennan said.
    "They (Brazilian exporters) are very interested in the
Canadian market because it's an untapped market," Brennan told
reporters after a speech to the Brazil/Canada Chamber of
Commerce.
    Brennan said Brazil is currently exporting products like
paper machinery and ships to Canada.
    He said he hopes to see medium-term financing facilities
for Brazilian companies reinstated shortly, following an
agreement reached in January with international financial
authorities.
    Brennan estimated Brazilian exports to Canada totalled
roughly 800 mln Canadian dlrs in 1985 while imports from Canada
reached about 700 mln dlrs.
    Brennan said he expects Banco Royal profit to increase this
year from the three mln U.S. dlrs reported for fiscal 1986
ended September 30 but said he could not predict by how much
because of the country's uncertain financial climate.
    Brennan said he expects his bank's growth to come from
increased exports to Canada. Banco Royal is the only
Canadian-owned commercial bank in Brazil although <Bank of
Montreal> has a Brazilian investment bank subsidiary, he said.
    Brennan said he expected Brazil to be able to reach an
equitable agreement with foreign banks on restructuring its 68
billion U.S. dlr foreign debt, because the Brazilian economy is
essentially healthy. He said he believed Brazil might be in a
position to resume debt repayments within a year.
    Brennan said he could not comment on the impact of Brazil's
interest payment moratorium on the Royal Bank of Canada.


.I 10642
.C
earn
.W
AFFILIATED PUBLICATIONS INC <AFP> SETS DIVIDEND.
    BOSTON, March 16 -
    Qtly div eight cts vs eight cts
    Pay June one
    Record May 15


.I 10644
.C
earn
.W
ASTRO-MED INC <ALOT> 4TH QTR NET.
    WEST WARWICK, R.I., March 16 -
    Shr 10 cts vs nine cts
    Net 217,000 vs 192,000
    Revs 3,325,000 vs 2,506,000
    Year
    Shr 31 cts vs 43 cts
    Net 660,000 vs 932,000
    Revs 12.2 mln vs 10.7 mln


.I 10645
.C
acq
.W
CENTRAL PENNSYLVANIA <CPSA> BUYS STAKE IN FIRM.
    SHAMOKIN, PENN., March 16 - Central Pennsylvania Savings
Association said it made a 30 pct investment in <Pinnacle
Mortgage Investment Co>.
    Terms were not disclosed.
    Pinnacle, incorporated in 1985, generates about 60 mln dlrs
in closed mortgage loans annually.
    Central Pennsylvania also said its directors recently
approved a letter of intent to acquire Hamilton-Reliance
Savings Association of Norristown, Pa.


.I 10647
.C
ship
.W
N.Z. PORTS REOPEN, BUT FURTHER CLOSURES POSSIBLE.
    WELLINGTON, March 17 - Harbour workers returned to work
this morning after a strike in support of pay claims closed New
Zealand's 15 ports for 24 hours yesterday.
    But the Harbour Workers Union told reporters the pay
dispute is not settled and the union's national executive will
meet here tomorrow to decide its next moves.
    "Obviously we will be considering further industrial action,"
Union secretary Ross Wilson said in a radio interview.
    The union rejects employers offers of a 7.5 pct pay rise
over 15 months. It wants 7.0 pct over 12 months.


.I 10650
.C
earn
.W
ATCOR <ATCO> SAYS OUTLOOK DEPENDS ON STEEL.
    CHICAGO, March 16 - Atcor Inc said the magnitude of any
earnings recovery in fiscal 1987 depends on the direction of
steel pricing and how fast the company's severe operating
problems in its consumer segment are resolved.
    Atcor's consumer segment represents about 25 pct of its
sales. In a letter to shareholders the company said that that
part of its business continues to be unprofitable.
    Atcor said it does not expect performance improvements in
the first quarter to be sustained throughout the year due to
increasing raw material costs.


.I 10651
.C
earn
.W
ZZZZ BEST CO INC <ZBST> 3RD QTR NET.
    LOS ANGELES, March 16 -
    Shr 14 cts vs four cts
    Net 1,474,000 vs 286,000
    Revs 15.5 mln vs 1.4 mln
    Avg shrs 10.6 mln vs 7.5 mln
    Nine mths
    Shr 38 cts vs eight cts
    Net 3,387,000 vs 588,000
    Revs 33.4 mln vs 2.9 mln
    Avg shrs 8.8 mln vs 7.5 mln


.I 10652
.C
acq
.W
PACIFIC LIGHTING <PLT> CONSIDERS UNIT SALE.
    LOS ANGELES, March 16 - Pacific Lighting Corp said it is
considering the sale of its land development line of business
and will be initiating discussions with potential buyers.
    The book value of the company's investment in land
development operations is 224 mln dlrs. The Pacific Lighting
Real Estate Group earned 24.2 mln dlrs and employed 800 people
during 1986, the company said.
    Alternatives to the sale being considered include a master
limited partnership and an initial public offering of the
equity in the land development companies, it said.
    Proceeds from the sale would likely be invested in Pacific
Lightings' new specialty retailing line of business and its oil
and gas operations, the company said.
    The investment banking firm Morgan Stanley has been
retained to advise Pacific Lighting on the disposition of the
land development operations.
    Completion of a transaction, it one is made, is expected by
the end of the year, the company said.


.I 10653
.C
acq
.W
MLX <MLXX> UNIT AGREES TO BY ABEX UNIT.
    TROY, Mich, March 16 - MLX Corp said a subsidiary has
tentatively agreed to acquire a sintered friction materials
business in Milan, Italy, from a unit of Abex Corp for
undisclosed terms.
    The deal will close after obtaining Italian government
approvals, expected in late April.
    The business, which will operated under the name S.K.
Wellman, will become a member of MLX's specialty friction
materials group. The business is a manufacturer of high-energy
friction materials for heavy-duty transmissions and clutches.


.I 10654
.C
earn
.W
MODULINE INTERNATIONAL <MDLN> 3RD QTR OPER LOSS.
    LACEY, Wash., March 16 - Qtr ended Dec 31
    Oper shr loss two cts vs loss 92 cts
    Oper net loss 28,045 vs loss 1,040,700
    Sales 4,943,584 vs 5,613,400
    Nine mths
    Oper shr profit 11 cts vs loss 93 cts
    Oper net profit 124,434, vs loss 1,054,000
    Sales 22.6 mln vs 26.3 mln
    (Mouduline International Inc)
    Note: oper data does not include 1986 gains from tax
benefit carryforwards of 30,000 dlrs, or three cts per shr, in
qtr and 110,000 dlrs, or ten cts per shr, in nine mths.


.I 10655
.C
earn
.W
<FINANCIAL TRUSTCO CAPITAL LTD> HIKES PAYOUT.
    CALGARY, Alberta, March 16 -
    Qtly div 12.5 cts vs six cts
    Pay March 31
    Record March 24
    Note: Co also declares 12.5 ct qtly div on special shares
issued in December, 1986, with same pay and record dates.


.I 10656
.C
earn
.W
USP REAL ESTATE <USPTS> HAS GAIN ON SALE.
    CEDAR RAPIDS, Iowa, March 16 - USP Real Estate Investment
Trust said it will post a first-quarter gain of 2,258,216 dlrs
on the sale of the Spanish Villa Apartments in Savannah, Ga.,
which was completed last week.


.I 10657
.C
earn
.W
BINDLEY WESTERN INDUSTRIES INC<BIND>4TH QTR NET.
    INDIANAPOLIS, Ind., March 16 - 
    Oper shr primary 28 cts vs 17 cts
    Oper shr diluted 24 cts vs 17 cts
    Oper net 1,826,000 vs 1,104,000
    Revs 205.4 mln vs 171.1 mln
    Avg shrs primary 6,512,462 vs 6,510,462
    Avg shrs diluted 10.3 mln vs 10.3 mln
    Year
    Oper shr primary 83 cts vs 76 cts
    Oper shr diluted 77 cts vs 74 cts
    Oper net 5,393,000 vs 4,955,000
    Revs 719.9 mln vs 633.5 mln
    Avg shrs primary 6,511,591 vs 6,508,379
    Avg shrs diluted 10.3 mln vs 9,122,722
    Note: Revs includes investment income 2,323,000 dlrs vs
2,239 dlrs for qtr and 10.1 mln dlrs vs 6,612,000 dlrs for 12
mths. 1986 revs also include unrealized loss on equity
securities of 59,000 dlrs for qtr and 1,155,000 dlrs for 12
mths.
    Oper net excludes extraordinary gain of 875,000 dlrs vs
284,000 dlrs for qtr and 1,053,000 dlrs vs 462,000 dlrs for 12
mths.


.I 10659
.C
earn
.W
CENTEL <CNT> SEES LOWER FIRST QTR PROFITS.
    CHICAGO, March 16 - Centel Corp said it sees 1987 first
quarter results below those of 1986 due to regulatory limits on
telephone earnings and 15 cts to 20 cts a share dilution from
1986 acquisitions.
    In the annual report, Chairman Robert Reuss told
shareholders telephone profits will continued to be limited by
ceilings imposed by regulators as well as deregulation and
structural changes within the industry that have slowed growth
in the investment base for setting rates.
    As such, its first quarter 1987 results will be below last
year's first quarter of 1.11 dlrs a share, he said.
    "Several of the company's telephone units may be faced with
a reduction in the rates of return authorized by their
regulators," Reuss said. "This could result in some rate
reductions and refunds to customers."
    Reuss said he is encouraged by the prospects for progress
in Centel's business communications, cable television and
cellular telephone units.
    Centel is asking shareholders at the annual meeting to
approve the tripling  to 120 mln in authorized shares.


.I 10662
.C
earn
.W
WINGS WEST AIRLINES <WING> 3RD QTR NET.
    SAN LUIS OBISPO, Calif., March 16 - Qtr ended Jan 31
    Shr one ct vs nine cts
    Net 29,000 vs 349,000
    Revs 7,892,000 vs 4,721,000
    Note: nine mth data unavailable
    .


.I 10663
.C
acq
.W
TWA <TWA> SEES BENEFITS IN USAIR <U> MERGER.
    WASHINGTON, March 16 - Trans World Airlines Inc, which
disclosed that it does not intend to seek control of USAir
Group at this time, said it still believes a combination of the
two airlines would have benefits to both.
    In a filing with the Securities and Exchange Commission,
TWA, which is controlled by Carl Icahn, said it continues to
closely watch the developments of USAir, which has an agreement
to acquire Piedmont Aviation Inc <PIE>.
    TWA said it spent 178.2 mln dlrs to acquire its 4,043,200
USAir shares, which amount to 14.8 pct of its total outstanding
common stock.
    TWA said it would not buy more USAir Group stock, at least
for the moment.
    But it said it still believes a TWA-USAir combination would
"create certain synergies that would be mutually beneficial to
both carriers."
    TWA stressed that it reserved the right to revive its
takeover attempt and said it may continue to explore the
feasibility and strategies of gaining control of USAir.
    Further purchases of USAir stock would require the approval
of the Department of Transportation, TWA said.
    Because of Department of Transportation rules, TWA also
said it put its USAir stock into a voting trust with Fleet
National Bank as the voting trustee.
    The voting trust agreement requires the bank to vote in
favor of any acquisition agreement between TWA and USAir and to
opposed any other merger of USAir.


.I 10664
.C
acq
.W
ADOBE <ADB>, HIGH PLAINS <HPOC> TO MERGE.
    DENVER, March 16 - Adobe Resources Corp and High Plains Oil
Corp said they reached an agreement in principle under which
High Plains will be merged into a unit of Adobe.
    Under terms of the agreement, the companies said each share
of High Plains common stock not owned by Adobe or held in the
High Plains treasury will be exchanged for 1.12 shares of newly
issued Adobe common.
    The exchange, they said, will be made on the effective date
of the merger, which must be approved by both companies' boards
and High Plains' shareholders.


.I 10665
.C
trade
.W
EC WARNS U.S. AND JAPAN ON TRADE TENSIONS.
    By Paul Mylrea, Reuters
    BRUSSELS, March 16 - The European Community (EC) delivered
warnings to both Japan and the United States over trade
frictions which have hit relations between the Community and
its main trading partners.
    EC foreign ministers meeting here issued a statement
deploring Japan's continued trade imbalance and appealed for
greater effort by the country to open its markets.
    Ministers also issued a statement saying they were
disturbed by moves in the U.S. to limit imports of textiles and
warned that the Community would react to any such moves.
    EC External Trade Commissioner, Willy De Clercq has already
written to his U.S. counterpart, special U.S. Trade
Representative Clayton Yeutter, outlining the EC's concerns.
    The ministers' said they were "very disturbed" by the U.S.
moves, adding, "the adoption of such measures would not fail to
have a negative effect on the process of multilateral
negotiations just started as well as on bilateral relations."
    Any unilateral U.S. moves would leave the EC no option but
to react according to the laws of the world trade body, the
General Agreement on Tariffs and Trade (GATT), they said.
    In a separate statement on Japan, the EC ministers said
they "deplore the continued aggravation of the imbalance in
trade ... (and) expect Japan to open up its market more."
    The statement added that the EC continued to insist that
the Japanese government must boost imports and stimulate
demand.
    Ministers also called on the European Commission to prepare
a report on U.S.-Japanese trade for July this year to enable
them to take action where necessary.
    One diplomat said the call for a report showed ministers
were determined not to let the Japanese question drop. "It wil
be back on the table again and again," the diplomat said.
    De Clercq told journalists, "There is a certain nervousness,
a growing impatience within the Community on trade relations
with Japan."
    But diplomats said the Community is keen to continue
talking with Tokyo to try and solve the problem rather than
embark on a costly and damaging trade war.


.I 10667
.C
acq
.W
******CEASARS WORLD FILES SUIT AGAINST MARTIN SOSNOFF AND MTS ACQUISITION ON TENDER OFFER.
Blah blah blah.

.I 10668
.C
acq
.W
COASTAL <CGP> HIT WITH TWO BILLION DLR LAWSUIT.
    HOUSTON, March 16 - TransAmerica Natural Gas Corp said it
is seeking two billion dlrs in punitive and actual damages in a
lawsuit it filed today against Coastal Corp, its chairman and
certain Coastal affiliates.
    TransAmerica, a privately held company that has been in
bankruptcy since 1983, said its suit alleges that Coastal and
its chairman, Oscar S. Wyatt Jr, unlawfully interfered with
agreements it previously reached with its creditors, causing
the company significant damage.
    TransAmerica also said its suit, filed in state district
court in Harris County, Texas, seeks injunctions against Wyatt
and Coastal to enjoin them from interfering with its
contractual agreements with its creditors.
    The company alleged that beginning in mid-1986, Coastal and
its chairman took various steps to acquire its gas and other
assets.
    Coastal has used TransAmerica's bankruptcy proceedings to
engineer a hostile takeover attempt, the company charged.
    In its suit TransAmerican alleged that Coastal and Wyatt
are "notorious corporate raiders who have been restrained in
the past from taking over other corporations in their attempt
to create a stranglehold position from which they could control
and raise gas prices..."
    "It is obvious that Coastal's efforts to improperly take
over TransAmerican is a thinly veiled attempt to control a
larger share of the Texas gas market to the detriment of end
users and consumers," the company alleged.
    Coastal could not be reached for comment. Company name is
Transamerican.


.I 10669
.C
acq
.W
CAESARS WORLD <CAW> FILES SUIT AGAINST SOSNOFF.
    LOS ANGELES, March 16 - Caesars World Inc said it filed a
lawsuit against Martin T. Sosnoff and MTS Acquisition Corp
regarding its March 9 unsolicited tender offer for Caesars
World stock.
    The company said it filed in the Federal Court in the
Central District of California, charging the tender offer,
which its board rejected, violated federal securities laws and
federal margin regulations.
    The suit charges the offering materials are materially
false and misleading and misstate and conceal material
information required to be disclosed to shareholders.
    The suit also charges the offer is illusory and designed to
manipulate the market in Caesars World stock to enable Sosnoff
to sell the Caesars World stock he already owns for a
substantial profit.
    The complaint seeks, among other things, to enjoin the
tender offer and to require MTS and Sosnoff to correct false
and misleading statements in the offer.
    Caesars World is expected to seek a friendly suitor,
restructure operations, or buy back Sosnoff's holdings in an
attempt to fight off the bid.
    Sosnoff holds about 13.6 pct of the company's stock.


.I 10670
.C
acq
.W
HARRIS UPS CENTERRE BANCORP <CTBC> STAKE.
    WASHINGTON, March 16 - Harris Associates L.P., a Chicago
investment advisor, said it raised its stake in Centerre
Bancorporation to 508,062 shares, or 6.6 pct of the total
outstanding, from 427,061 shares, or 5.5 pct.
    In a filing with the Securities and Exchange Commission,
Harris said it bought 81,001 Centerre common shares between Jan
2 and March 4 at prices ranging from 36.00 to 39.75 dlrs a
share.
    It said its dealings in the company's stock are on behalf
of its clients.


.I 10671
.C
earn
.W
PAY'N-SAVE <PAYN> 1ST QTR JAN 31 NET.
    SEATTLE, March 16 -
    Shr profit one ct vs loss 14 cts
    Net profit 279,000 vs loss 1,896,000
    Sales 199.6 mln vs 142.4 mln


.I 10674
.C
oilseed;veg-oil;
.W
EC COMMISSION DEFENDS FARM PROGRAM.
    BRUSSELS, March 16 - The European Community's (EC)
executive Commission defended attacks on major elements of its
ambitious program to rid the EC of its controversial farm
surpluses, after strong attacks from northern states.
    Britain and West Germany, backed by the Netherlands and
Denmark, opposed a proposed tax on edible oils and fats which
has already sparked strong protest from exporters to the EC led
by the U.S. and from EC consumer groups, diplomats said.
    But EC Agriculture Commissioner Frans Andriessen told
journalists he had warned ministers that failure to agree the
tax, proposed last month as part of the Commission's annual
farm price package, would leave a large hole in the group's
budget.
    He added that he hoped states had not yet made their mind
up for good. "I hope the debate is still open, if not there will
be a formidable hole in the budget," he said.
    The shortfall could reach two billion dollars in 1988 and
would be only slightly less this year, he said.
    Foreign ministers were taking a first look at the tax ahead
of farm ministers in a move described by diplomats as
unprecedented and welcomed by Andriessen as a sign ministers
recognised the importance of reforming the EC's farm policy.
    The proposed tax is designed to provide the EC with extra
cash to finance community oilseed crops at their current levels
and to brake a dramatic decrease in olive oil consumption by
making it more competitive with other oils.
    Andriessen noted the EC has over two mln olive oil
producers, mostly small farmers, who could be helped by the
tax.
    "What we are suggesting is reasonable, it should be better
understood not just outside the community but at home," he said.
    Britain, normally a keen advocate of radical changes in the
EC's costly farm subsidies system, warned the proposal to
impose the tax on both domestic and imported oils and fats
could seriously damage the EC's trade relations with other
countries.
    Britain also warned that the tax could hit developing
countries already receiving aid from the EC, they said.
    The Commission also defended proposals to dismantle
Monetary Compensatory Amounts (MCA) -- a system of cross border
subsidies and taxes to level out foreign exchange fluctuations
for farm exports -- against harsh West German criticism.
    In a letter this weekend from Chancellor Helmut Kohl to EC
executive Commission President, Jacques Delors, Kohl made clear
such a dismantling would mainly hit West German farmers.
    Diplomats said West Germany again repeated its criticism at
the talks here but Andriessen told journalists that Germany had
been alone in its opposition. The question was a key aspect of
the Commission's farm price proposals, he added.
   Ministers also agreed a 3.5 billion dlrs scheme to rid the
EC of its butter mountain, despite Spanish and Portuguese
opposition.
    The scheme will pay for the disposal of one mln tonnes of
unwanted butter, by selling it at knock-down prices, turning it
into animal feed or exporting it at subsidised prices.
    National capitals are due to be reimbursed later out of
savings from another plan to curb milk production.
    Diplomats said Spain and Portugal have been angered by the
scheme, which they feel forces them to pay for massive
surpluses built up before they joined the community last year,
but the two countries did not block today's vote.


.I 10675
.C
acq
.W
AERO SERVICES <AEROE> IN PACT FOR NOMINATIONS.
    TETERBORO, N.J., March 16 - Aero Services International Inc
said it signed an agreement with Dibo Attar, who controls about
39 pct of its common stock, under which three nominees to
Aero's board have been selected by Attar.
    In addition to Attar, the nominees are Stephen L. Peistner,
chairman and chief executive officer of <McCrory Corp> and
James N.C. Moffat III, vice president and secretary of
<Eastover Corp>.


.I 10677
.C
bop
.W
******Australia Feb current account deficit 750 mln dlrs vs Jan 1.23 billion - official.
Blah blah blah.

.I 10678
.C
bop
.W
AUSTRALIAN CURRENT ACCOUNT DEFICIT NARROWS IN FEB.
    CANBERRA, March 17 - Australia's current deficit narrowed
to 750 mln dlrs in February from 1.23 billion (revised from
1.29 billion) in January, the Statistics Bureau said.
    This compared with an 897 mln dlr shortfall a year earlier.
    February merchandise trade recorded a 42 mln dlr surplus
against a 246 mln shortfall (revised from 287 mln) in January
and a 162 mln deficit in February 1986.
    The current account deficit fell at the lower end of the
range of forecasts of 700 mln to one billion dlrs made by
market economists yesterday.
    February FOB exports rose to 2.82 billion dlrs from 2.74
billion (revised from 2.72 billion) in January and 2.54 billion
a year earlier while FOB imports fell to 2.77 billion from 2.99
billion (revised from 3.01 billion) against 2.70 billion a year
earlier, the Bureau said.
    It said a four pct decline in rural exports, despite an 11
pct rise in wheat exports, was more than offset by a seven pct
rise in non-rural exports, notably minerals and fuels.
    On the import side, the main decreases were falls of 17 pct
in machinery and transport equipment and 21 pct in fuels, the
Bureau said.
    The net services deficit narrowed to 146 mln dlrs from 253
mln (revised from 268 mln) in January and 192 mln a year
earlier, the Bureau said.
    This made a sharply lower deficit of 104 mln dlrs on the
balance of goods and services against deficits of 499 mln in
January and 354 mln a year earlier.
    Deficit on net income and unrequited transfers was 646 mln
dlrs against 736 mln in January and 543 mln a year earlier.
    Official capital transactions in February showed a surplus
of 786 mln dlrs against a 2.56 billion surplus in January and a
505 mln surplus a year earlier.
    Non-official capital and balancing item showed a 36 mln dlr
deficit against a 1.33 billion deficit in January and a 392 mln
surplus in February 1986, the Bureau said.
    The cumulative current account deficit for the first eight
months of fiscal 1986/87 ending June 30 widened to 9.37 billion
dlrs from 9.32 billion a year earlier.
    The cumulative trade deficit narrowed to 2.09 billion dlrs
from 2.21 billion and the services deficit to 2.25 billion from
2.75 billion but the transfers deficit widened to 5.03 billion
from 4.36 billion. The cumulative official capital surplus
narrowed to 2.90 billion dlrs from 3.86 billion.


.I 10680
.C
reserves
.W
AUSTRALIAN RESERVES FALL IN FEBRUARY.
    SYDNEY, March 17 - Australia's official reserve assets fell
to the equivalent of 8.50 billion U.S. Dlrs in February, from
9.15 billion in January, compared with 9.06 billion a year
earlier, the Reserve Bank said.
    In Australian dollar terms, reserves fell by 1.24 billion
dlrs to 12.60 billion after falling 1.71 billion to 13.85
billion in January and rising 792 mln to 12.92 billion in
February 1986.
    The bank said that excluding valuation effects, it
estimated reserves fell 853 mln dlrs after falling 2.34 billion
in January and rising 323 mln a year earlier.
    The individual value of reserve assets in Australian
dollars at end-February with end-January and year-earlier
respectively in brackets were.
    Gold 4.71 billion (4.90 billion and 3.83 billion), SDR's
503 mln (524 mln and 468 mln), IMF reserve position 354 mln
(365 mln and 312 mln), U.S. Dollars 3.25 billion (both 3.99
billion), other foreign exchange 3.78 billion (4.07 billion and
4.32 billion).


.I 10681
.C
wpi
.W
******Japan February wholesale prices fall 0.1 pct (0.6 pct January drop) - official.
Blah blah blah.

.I 10682
.C
wpi
.W
JAPAN WHOLESALE PRICES FALL 0.1 PCT IN FEBRUARY.
    TOKYO, March 17 - Japan's overall wholesale price index
(base 1980) fell 0.1 pct in February from a month earlier to
86.4 for the second consecutive month-on-month fall, the Bank
of Japan said.
    Wholesale prices fell 0.6 pct in January from December.
    The index fell 9.1 pct from a year earlier for the 21st
straight year-on-year drop, the central bank said.
    The reduced month-on-month drop mainly stemmed from the
recovery in world crude oil prices, it said.
    On a customs-cleared basis, crude oil prices rose to around
17 dlrs a barrel in February from about 15 dlrs in January.
    The average value of the yen against the dollar rose 0.8
pct to 153.50 in February from 154.67 in January and was up
16.8 pct from 184.55 a year earlier, the bank said.
    The export price index in February fell 0.7 pct from a
month earlier reflecting price cuts in export products like
cars and precision instruments due to severe foreign
competition. The index was down 7.1 pct from a year earlier.
    The import price index rose 1.1 pct from a month earlier to
57.4 for the sixth successive month-on-month gain mainly due to
the continued strength of world crude oil prices. But the index
was down 29 pct from a year earlier.
    The domestic price index fell 0.1 pct to 91.9 in February,
its 24th straight monthly drop, mainly reflecting falls in
prices of home appliances such as colour televisions due to
severe sales competition at home. Lower edible oil prices added
to the decline.
    The index was down 6.7 pct from a year earlier.
    The domestic index marked its largest year-on-year drop of
7.1 pct in January since the central bank started compiling
such statistics in 1960 under its current system.
    Wholesale prices are likely to turn upward in March as
higher world crude oil and raw material prices are expected,
the bank said.


.I 10691
.C
dlr;money-fx;
.W
DOLLAR SEEN FALLING UNLESS JAPAN SPURS ECONOMY.
    By Rie Sagawa, Reuters
    TOKYO, March 17 - Underlying dollar sentiment is bearish,
and operators may push the currency to a new low unless Japan
takes steps to stimulate its economy as pledged in the Paris
accord, foreign exchange analysts polled by Reuters said here.
    "The dollar is expected to try its psychological barrier of
150.00 yen and to fall even below that level," a senior dealer
at one leading bank said.
    The dollar has eased this week, but remains stable at
around 151.50 yen. Six major industrial countries agreed at a
meeting in Paris in February to foster currency stability.
    Some dealers said the dollar may decline in the long term,
but a drastic fall is unlikely because of U.S. Fears of renewed
inflation and fears of reduced Japanese purchases of U.S.
Treasury securities, needed to finance the U.S. Deficit.
    Dealers generally doubted whether any economic package
Japan could adopt soon would be effective enough to reduce its
trade surplus significantly, and said such measures would
probably invite further U.S. Steps to weaken the dollar.
    Under the Paris accord, Tokyo promised a package of
measures after the fiscal 1987 budget was passed to boost
domestic demand, increase imports and cut its trade surplus.
    But debate on the budget has been delayed by an opposition
boycott of Parliamentary business over the proposed imposition
of a five pct sales tax, and the government has only a slim
chance of producing a meaningful economic package in the near
future, the dealers said.
    If no such steps are taken, protectionist sentiment in the
U.S. Congress will grow, putting greater downward pressure on
the dollar, they said.
    The factors affecting the U.S. Currency have not changed
since before the Paris accord, they added.
    "Underlying sentiment for the dollar remains bearish due to
a still-sluggish U.S. Economic outlook, the international debt
crisis triggered by Brazil's unilateral suspension of interest
payments on its foreign debts and the reduced clout of the
Reagan administration as a result of the Iran/Contra arms
scandal," said a senior dealer at a leading trust bank.
    "There is a possibility that the dollar may decline to
around 140.00 yen by the end of this year," said Chemical Bank
Tokyo branch vice president Yukuo Takahashi.
    But operators find it hard to push the dollar either way
for fear of possible concerted central bank intervention.
    Dealers said there were widespread rumours that the U.S.
Federal Reserve telephoned some banks in New York to ask for
quotes last Wednesday, and even intervened to sell the dollar
when it rose to 1.87 marks.
    The Bank of England also apparently sold sterling in London
when it neared 1.60 dlrs on Wednesday, they said.
    But other dealers said they doubted the efficacy of central
bank intervention, saying it may stimulate the dollar's decline
because many dealers are likely to await such dollar buying
intervention as a chance to sell dollars.
    However, First National Bank of Chicago Tokyo Branch
assistant manager Hiroshi Mochizuki said "The dollar will not
show drastic movement at least to the end of March."
    Other dealers said the U.S. Seems unwilling to see any
strong dollar swing until Japanese companies close their books
for the fiscal year ending on March 31, because a weak dollar
would give Japanese institutional investors paper losses on
their foreign holdings, which could make them lose interest in
purchases of U.S. Treasury securities.
    U.S. Monetary officials may refrain from making any
comments this month to avoid influencing rates, they said.


.I 10692
.C
money-fx;interest;bop;trade;austdlr;
.W
MARKET WELCOMES LOWER AUSTRALIAN PAYMENTS DEFICIT.
    By Peter Bale, Reuters
    SYDNEY, March 17 - The Australian dollar rose more than 40
points and money market interest rates retreated on the better
than expected improvement in the February current account
deficit, but economists and dealers were cautious about
identifying it as the start of a downward trend.
    The current account deficit narrowed to 750 mln dlrs in
February from 1.23 billion in January. It hit 13.82 billion
dlrs in 1985/86 to end-June.
    The currency jumped to 0.6858/63 U.S. Dlrs and traded as
high as 0.6875 before retreating to around 0.6864/69.
    "It's got 69 cents written all over it," one dealer said.
    Foreign exchange dealers said some buyers had gone long on
the dollar expecting a lower figure and sold it down about 30
points to 0.6820 U.S. Dlrs before the release.
    The 750 mln dlr deficit was at the lower end of forecasts
and analysts said the market would welcome any figure below one
billion dlrs for March.
    Banque National de Paris <BNPP.A> senior dealer Peter
Nicolls cautioned that in the long term the currency and
interest rates were too high for import substitution and export
industries.
    Nicolls said he expected the dollar to go as high as 0.6875
and perhaps to 69 cents tomorrow.
    <Lloyds Bank NZA Ltd> chief economist Will Buttrose said
the 42 mln dlr trade surplus was encouraging as were imports at
2.77 billion dlrs, down from 2.99 billion in January.
    But he warned that the outlook for rural and iron and coal
exports remained poor. "We should remember we are paying
something like seven to eight billion dollars simply to service
our foreign debt and that is not going to go away in the near
term," Buttrose said.
    Buttrose said he expected a March deficit of around 900 mln
dlrs, and added "Any figure under a billion dollars will be
acceptable (to the markets)."
    ANZ Banking Group Ltd <ANZA.S> senior economist Ian Little
said the big question was whether the improvement in exports
could be sustained. February FOB exports rose to 2.82 billion
dlrs from a revised 2.74 billion in January.
    Interest rates responded quickly to the deficit news, with
90-day bank bill yields falling to 16.42-16.45 pct from early
highs of 16.50 and yields yesterday as high as 16.65.
    Longer term yields fell with 10-year bonds at 13.66/68 pct
from 13.74 before the release and highs of 13.87 yesterday.
    The stock market was easier at midsession but brokers said
the current account data had little impact on trading.


.I 10693
.C
acq
.W
HONGKONG BANK SAYS CLOSE TO DEAL ON PROPERTY SALE.
    HONG KONG, March 17 - Hongkong and Shanghai Banking Corp
<HKBH.HK> is close to a deal on the sale of a commercial
building in Hong Kong's Mongkok business district, a bank
spokesman said.
    He said the 21-storey Wayfoong Plaza was likely to be sold
for about 280 mln H.K. Dlrs but declined to identify the buyer.
    The spokesman gave no further details.


.I 10695
.C
money-supply
.W
THAI M-1 MONEY SUPPLY RISES IN JANUARY.
    BANGKOK, March 17 - Thailand's M-1 money supply rose 9.8
pct to an estimated 117.3 billion baht in January after
increasing 6.6 pct in December, the Bank of Thailand said.
    It said year-on-year M-1 grew 23.1 pct in January after an
18.5 pct increase in December.
    The central bank said M-2 rose 1.7 pct to an estimated
686.5 billion baht in January after a 2.4 pct increase in
December while year-on-year it expanded 13.3 pct after a 12.6
pct rise in December.


.I 10696
.C
gnp
.W
JAPAN TO RELEASE GNP FIGURES LATER TODAY.
    TOKYO, March 17 - The Economic Planning Agency will
announce gross national product (GNP) figures for the
October/December quarter today at 1700 hrs local time (0800
gmt), Agency officials told Reuters.
    In the July/September quarter, GNP rose 0.6 pct from the
previous three months.


.I 10698
.C
bop;trade;
.W
TAIWAN 1986 BALANCE OF PAYMENTS SURPLUS IS RECORD.
    TAIPEI, March 17 - Taiwan's balance of payments surplus
widened to a record 16.62 billion U.S. Dlrs in calendar 1986
from 9.35 billion in 1985, the central bank said.
    A bank official attributed the increase mainly to Taiwan's
growing trade surplus, which increased to a record 16.8 billion
U.S. Dlrs in 1986 from 11.2 billion in 1985.
    He said the deficit on invisible trade narrowed to 740 mln
U.S. Dlrs from 1.97 billion.
    Invisible earnings rose to 6.77 billion from 5.09 billion
while invisible spending climbed to 7.51 billion from 7.06
billion, he said.


.I 10699
.C
bop;trade;
.W
EC WARNS U.S. AND JAPAN ON TRADE TENSIONS.
    BRUSSELS, March 17 - The European Community (EC) yesterday
warned Japan and the United States, its main trading partners,
that friction over trade issues is affecting the EC's relations
with both countries.
    EC foreign ministers issued a statement deploring Japan's
continued trade imbalance and appealed for the country to make
a greater effort to open up its markets. They also said they
were disturbed by a draft bill before the U.S. Congress that
would impose permanent quotas on textile imports and were
prepared to react. The U.S. Administration has already
distanced itself from the bill.
    EC External Trade Commissioner Willy De Clercq has written
to his U.S. Counterpart, Trade Representative Clayton Yeutter,
outlining the EC's concerns.
    The statement said ministers were very disturbed by U.S.
Moves towards protectionism. "The adoption of such measures
would not fail to have a negative effect on the process of
multilateral negotiations just started, as well as on bilateral
relations," it said.
    Any unilateral U.S. Moves would leave the EC no option but
to react according to the laws of the General Agreement on
Tariffs and Trade, it said.
    In a separate statement on Japan, the EC ministers said
they "deplore the continued aggravation of the imbalance in
trade (and) expect Japan to open up its market more."
    The statement said the EC would continue to insist that
Japan boost imports and stimulate domestic demand.
    Ministers also called on the EC Commission to prepare a
report on U.S.-Japanese trade for July this year to enable them
to take appropriate action where necessary.
    One diplomat said the call for a report showed ministers
were determined not to let the Japanese question drop. "It will
be back on the table again and again," the diplomat said.
    De Clercq, talking to journalists during the meeting, said,
"There is a certain nervousness, a growing impatience within the
Community concerning trade relations with Japan."
    The EC is not satisfied with Japan's inability to cut its
trade surplus, and the Commission has adopted a tough approach
on imports of goods such as Japanese photocopiers, where it has
imposed 20 pct anti-dumping duties.
    But diplomats said the EC is keen to negotiate with Tokyo
to solve the problem rather than embark on a costly and
damaging trade war, and the ministers called for more
cooperation with Japan in industry and research.


.I 10700
.C
earn
.W
CATHAY PACIFIC 1986 PROFIT SEEN ABOVE TARGET.
    By Allan Ng, Reuters
    HONG KONG, March 17 - Buoyed by low fuel prices and
favourable currency factors, Cathay Pacific Airways Ltd's
<CAPH.HK> 1986 profits are expected to surpass the airline's
forecast of one billion H.K. Dlrs, stock analysts said.
    Analysts said they expect the airline to show net earnings
of between 1.1 billion and 1.25 billion dlrs when it reports
results tomorrow for its first year as a public company.
    Cathay, 51 pct owned by Swire Pacific Ltd <SWPC.HK>, made
its earnings forecast in the prospectus for its flotation in
May last year.
    Cathay is expected to pay a 13-cent final dividend, making
a total of 19 cents for the year, as forecast in the
prospectus, analysts polled by Reuters said.
    They said the airline's performance improved in the second
half of the year after it reported interim profits of 503 mln
dlrs.
    The weakness of the local currency, pegged at 7.80 to one
U.S. Dollar, and low fuel prices moved further in the company's
favour from the assumptions made in the prospectus at the time
of the flotation, James Capel (Far East) Ltd said.
    James Capel estimates average fuel prices for the airline
industry in 1986 at 63 U.S. Cents per gallon, 27 pct below the
1985 level. It said a one pct movement in fuel prices would
affect Cathay's net profits by 10 mln dlrs and forecast profits
of 1.25 billion dlrs.
     Analysts said the company's estimates of fuel price and
currency movements set out in its prospectus were conservative.
    "This is reflected in their interim results which showed
that profit margin has increased," said Frederick Tsang of
Mansion House Securities (F.E.) Ltd.
    Cathay's six-month turnover rose 19.8 pct from year-earlier
levels, but profits rose 69 pct.
    The rise in oil prices in late 1986 had little impact on
the company's fuel oil bill last year, as aviation fuel prices
usually lag behind crude price movements by several months,
analysts said.
    By last September the yen had risen some 54 pct against the
Hong Kong dollar from the end of 1985, the mark 43 pct and
sterling 12 pct.
    "Overall the weakness of the Hong Kong dollar against
Cathay's major trading currencies helped push passenger yields
in the first half up 7.2 pct," said James Capel. "This should
continue through the second half to enable passenger yields to
end the year up 7.6 pct."
    A strong performance from the 2.9 billion dlrs in cash
under management also improved profits, James Capel said.
    A general improvement in air traffic last year contributed
to Cathay's revenue increase, but the company's load factor
declined because of increased competition and an expansion of
its fleet and services.
    James Capel estimated Cathay's passenger-kilometres flown
last year rose six pct from 1985 and freight-kilometres flown
climbed 17 pct, though the airline's load factor probably fell
to 68.8 pct from 70 pct.
    "Cathay added new planes, and was forced to fly some routes
last year because of the threat of competition from Dragon Air,"
said Tsang. "This affected its load factor."
    Fear of possible competition from fledgling carrier <Hong
Kong Dragon Airways Ltd> may have contributed to Cathay's
decision to resume service to New Zealand last year, analysts
said.


.I 10701
.C
copper
.W
RENISON GOLDFIELDS EXTENDS LYELL COPPER MINE LIFE.
    SYDNEY, March 17 - The Renison Goldfields Consolidated Ltd
<RGFJ.S> (RGC) Mt Lyell copper mine in Tasmania will stay open
for an extra five years following a new aid package from the
state government, RGC said in a statement.
    The mine had been scheduled to close in 1989 after the 40
series stopes were mined, but will now stay open until the
deeper 50 and 60 series have played out, probably in 1994.
    The Australian dollar's fall since 1985 also improved the
local dollar copper price, making the company profitable and
justifying the mining of deeper reserves at a copper grade of
about 1.95 pct against about 1.60 pct now, the firm said.
    Ore output will be cut, but the higher grades will keep
contained-copper output at current levels of about 24,000
tonnes a year, it said. Capital expenditure of about 18 mln
dlrs will be required over the life of the new plan, RGC said.
    The latest aid package is the third since 1977 for RGC, a
major employer in Queenstown on the thinly populated west coast
of Tasmania.
    The mine was kept open in 1985 after Tasmania gave RGC 10
mln dlrs in aid. The new package includes an eight mln dlr
advance to RGC at the long-term bond rate, power concessions
and deferred royalties and payroll taxes.


.I 10702
.C
acq
.W
NEW ZEALAND PRESS GROUP BUYS MORE TEXAS NEWSPAPERS.
    WELLINGTON, March 17 - <Independent Newspapers Ltd> (INL)
said it bought two more community newspapers in Houston, Texas,
through a subsidiary there, for an undisclosed sum.
    INL said in a statement <Houston Community Newspapers Inc>
bought the South West Advocate and the South Bend Advocate,
with combined circulation of 74,000 copies, and associated
assets, from <The Advocate Communications Corp Inc>.
    INL publishes Wellington's morning and evening newspapers
as well as New Zealand provincial dailies and newspapers in
Rhode Island. Just under 40 pct of INL is owned by <News Ltd>,
an Australian subsidiary of News Corp Ltd <NCPA.S>.
    Production and administration of the two publications would
be transferred to the company's existing centre in Houston. INL
said the acquisition took effect on March 1.
    INL chairman Alan Burnet said the purchase would enable the
subsidiary to offer advertisers a combined distribution of nine
community newspapers to 340,000 homes in the greater Houston
area. Trading conditions in the area are particularly difficult
because the city's economy depends to a large extent on the
fortunes of the petroleum industry, but the situation should
improve in the medium to long term and the investment will
prove to be sound, he said.


.I 10704
.C
veg-oil;soy-oil;
.W
U.S. AGRICULTURE SECRETARY WARNS EC ON SOY OIL TAX.
    CHAMPAIGN, Ill., March 17 - U.S. Agriculture Secretary
Richard Lyng warned the European Community yesterday it will
face serious retaliation if it enacts a new tax on products
such as U.S. Soybean oil.
    Speaking at a news conference before a scheduled speech,
Lyng said he did not think the tax, which is still in the
discussion stage, would be approved.
    He said the U.S. Would take serious retaliatory action
because if implemented, the tax would have a considerable
impact on U.S. Farmers.


.I 10705
.C
rubber
.W
KOBE RUBBER EXCHANGE TO EXTEND TRADING HOURS.
    TOKYO, March 17 - The Kobe Rubber Exchange said it will
extend its trading hours from May 1 to enable more operators to
use the exchange.
    Subject to Ministry of International Trade and Industry
approval, the Exchange will add a sixth session starting at
1700 local time, and will close the account for trading at the
new session the following day before the opening call starts at
0930 local time, an Exchange official said.
    Trading on the Singapore rubber market, a major producer
price indicator for Japanese end-users, is usually active after
the end of the current final session here.
    The introduction of the new session will enable
participants to trade overnight after taking account of
Singapore rubber prices, because brokers and members who are
designated by the Kobe Exchange are allowed to add the volume
traded overnight to the new final session before the opening
session starts next day, the official said.
    But because the Kobe Exchange uses the auction system which
sets a fixed price at each session, the price of contracts
traded overnight should be a fixed price settled at the sixth
session, he added.
    Industry sources said they expected the Ministry to approve
the plan because it has encouraged the Japanese futures
industry to expand and internationalise.
    The Tokyo Commodity Exchange for Industry, TOCOM, which
also trades rubber futures in Japan, said it has no plans to
introduce an extra session.
    TOCOM also has five rubber trading sessions a day. Four
sessions start 15 minutes later than Kobe Exchange sessions,
but both Exchanges' final sessions start at the same time.


.I 10706
.C
nat-gas
.W
COASTAL <CGP> SEEKS TO HALT BILLION DLR LAWSUIT.
    HOUSTON, March 17 - Coastal Corp said a federal bankruptcy
court will hear its request today for a restraining order to
stop a two billion dlr lawsuit against it by <TransAmerican
Natural Gas Corp>.
    TransAmerican, which entered Chapter 11 bankruptcy
proceedings in 1983 to reorganise its debts, filed the lawsuit
to block Coastal from taking control.
    Coastal spokesman Jim Bailey confirmed the company, which
is an unsecured creditor of TransAmerican, would present its
own reorganisation plan to the bankruptcy court.
    Under the plan, Coastal would buy the natural gas reserves
and pipeline system owned by TransAmerican in Texas for an
undisclosed amount.
    TransAmerican lawyer John Nabors said the company values
its total assets, including an unused oil refinery, at about
one billion dlrs.
    The company, the second-largest natural gas producer in
Texas, said it has gas reserves of 1.2 trillion cubic feet and
over 1,000 miles of pipeline and gas gathering lines.
    About 80 pct of TransAmerican's gas is available for spot
market sales in Texas during peak demand, it said.
    Nabors said the TransAmerican reorganisation would repay
its 770 mln dlr debt with profits from natural gas sales. The
lawsuit seeks one billion dlrs in actual damages and one
billion in punitive damages from Coastal.
    Coastal has been trying to break into the Texas gas market
since 1979, when it was forced to sell <Lo-Vaca Gas Gathering
Co> to settle over 1.6 billion dlrs in lawsuits by Texas
customers facing abrupt curtailment of supply.
    Coastal, a natural gas producer and pipeline company,
earned 71.6 mln dlrs on sales of 6.7 billion in 1986, about
half the its 1985 profits, due to slumping energy prices.


.I 10709
.C
crude
.W
STUDY PREDICTS U.S. DEPENDENCE ON FOREIGN OIL.
    NEW YORK, March 17 - A government study has concluded the
U.S. Will be dependent on oil from the middle east into the
next century and must take steps to reduce its vulnerability,
the New York Times said.
    The newspaper said the inter-agency government study found
a serious oil-dependency problem due to steadily falling
domestic production and rising demand for imported oil.
    The study concluded that by 1995 the U.S. Will be relying
on foreign countries for 50 pct of its oil, more than the peak
of 48 pct reached in 1977 and far above the 33 pct rate during
the 1973-74 Arab oil embargo.
    The U.S. Now imports about 38 pct of its oil needs, up from
27 pct a year ago, the New York Times said.
    It said recommendations sent to the White House by Energy
Secretary John Harrington include financial incentives to raise
domestic oil production by one mln barrels a day from the
current 8.4 mln barrels.
    The newspaper said the administration has placed increased
emphasis on stockpiling oil reserves. It said the view now held
is that the Strategic Petroleum Reserve to be tapped in times
of shortages, should be increased by 100,000 barrels a day,
rather than 35,000 as called for in the 1988 budget.
   The newspaper said Harrington may propose restoring the
depletion allowance to major producers.
    "The administration also plans to renew its efforts to
...Repeal the windfall profits tax, remove bars to drilling on
the outer continental shelf and repeal the law that limits the
use of natural gas in industrial and utility boilers," it added.
    The New York Times quoted Senator Don Nickles of Oklahoma
as saying the study greatly underestimated potential U.S.
Demand for imported oil in the next decade and overestimated
the amount of domestic oil which would be produced.


.I 10710
.C
money-supply
.W
******JAPAN M-2 PLUS CD MONEY SUPPLY ROSE 8.8 PCT IN YEAR TO FEBRUARY (JAN 8.6) - OFFICIAL.
Blah blah blah.

.I 10711
.C
money-supply
.W
JAPAN FEBRUARY MONEY SUPPLY RISES 8.8 PCT.
    TOKYO, March 17 - Japan's broadly defined money supply
average of M-2 plus certificate of deposits (CDs) rose a
preliminary 8.8 pct in February from a year earlier, compared
with an 8.6 pct rise in January, the Bank of Japan said.
    The seasonally adjusted February average of M-2 plus CDs
supply rose 0.8 pct from January, it said.
    Unadjusted M-2 plus CDs stood at an average 336,000 billion
yen in February compared with 337,100 billion yen in January.


.I 10713
.C
grain
.W
CHINA TO IMPORT MORE GRAIN IN 1987.
    By Mark O'Neill, Reuters
    HANGZHOU, China, March 17 - China's grain imports will rise
in 1987 because of a serious drought and increasing demand, but
will be not be as large as in the past, Chinese officials and
Japanese traders told Reuters.
    They said foreign exchange constraints and national policy
would not allow a return to large-scale imports, which peaked
at 16.15 mln tonnes in 1982.
    An agricultural official of the Shanghai government put
maximum imports at about 10 mln tonnes this year, against 7.73
mln in 1986 and 5.97 mln in 1985.
    Officials said grain imports rose in 1986 because of a poor
harvest and rising domestic demand, but remained below exports,
which rose to 9.42 mln tonnes from 9.33 mln in 1985.
    "China is short of foreign exchange," the Shanghai official
said. "We cannot rely on imports, even at current low world
prices. Only if there is a major disaster will we become a
major importer."
    A Japanese trader in Peking said Chinese grain imports
would rise and exports fall this year because of the drought,
low world prices and rising domestic demand for human and
animal consumption.
    "At current prices, China loses yuan on every tonne of grain
it exports, though it earns foreign exchange which it badly
needs," the trader said.
    The People's Daily said last Saturday a serious drought is
affecting 13.3 mln hectares of arable land, which will reduce
the summer grain harvest from last year's level.
    The paper added that leaders in some areas were not paying
enough attention to agriculture, especially grain, making it
difficult to achieve the 1987 grain output target of 405 mln
tonnes against 391 mln in 1986.
    "All areas must spare no effort to raise the autumn harvest
area, especially of corn, sweet potatoes, paddy rice and
high-yield cash crops," it said.
    It added factory production might have to be reduced to
provide electricity for agriculture if it was needed to fight
the drought.
    Since January, the press has devoted much attention to
grain, stressing that growth in output is vital to China's
economic and political stability and that prices paid to
farmers are too low.
    Officials in east China have repeatedly said stable grain
production is a key state policy and outlined the measures
being taken in their areas to encourage output.
    The Shanghai official said that in one suburb, 10 pct of
the pre-tax profits of factories are used to subsidise
agriculture. He said rural industries in other suburbs also set
aside money for grain and pay the salaries of some of the
70,000 workers available to help farmers.
    Chu Jinfeng, an official of Fengbing county outside
Shanghai, said factory workers get 60 yuan a month and three
years unpaid leave to grow grain and can keep the profits.
    Pan Huashan, an official of the agricultural department of
Zhejiang Province, said rural industry also subsidises grain
output in his province.
    "In addition, we are setting up grain production bases,
raising the level of science and technology on the farms and
improving the supply of raw materials, roads and other
infrastructure," he said.
    The Shanghai official said rural residents who work in
industry or commerce usually keep their land to farm in their
spare time, or let other family members farm it. In some cases,
they lease the land to grain farmers.
    The China Daily said last month that grain output should
reach between 425 and 450 mln tonnes by 1990 and between 480
and 500 mln by 2000. It said growing grain should be made
profitable.
    "The advantages the state promises grain growers actually
yield tangible profits for them and are not siphoned off by
intermediate agencies because of bureaucracy or corruption.
Only this will boost enthusiasm," it said.


.I 10716
.C
gnp
.W
******Japan October/December GNP up 0.8 pct (July/Sept revised 0.7 rise) - official.
Blah blah blah.

.I 10717
.C
gnp
.W
******Japan GNP rises 2.5 pct in calendar 1986 (4.7 pct in 1985) - official.
Blah blah blah.

.I 10718
.C
gnp
.W
JAPAN OCTOBER/DECEMBER GNP RISES 0.8 PCT.
    TOKYO, March 17 - Japan's gross national product (GNP) rose
a real 0.8 pct in the October/December quarter after an
upwardly revised 0.7 pct increase the previous three months,
the Economic Planning Agency (EPA) said.
    The rise in the July/September quarter had originally been
put at 0.6 pct. The annualized growth rate accelerated to 3.2
pct in October/December from 3.0 pct in July/September.
    In the 1986 calendar year, GNP rose 2.5 pct, after a 4.7
pct increase in 1985. Last year's performance was the worst
since 1974, when GNP fell 1.4 pct. Agency officials blamed the
strong yen for depressing exports and manufacturing industry.
    In nominal terms, GNP rose 0.5 pct in the October/December
quarter, reflecting stable prices, after a one pct increase in
the previous three months, the Agency said.
    Domestic real demand increased 0.6 pct in October/December,
after a one pct rise the previous quarter.
    Domestic demand contributed 0.5 percentage point to real
GNP growth in October/December, while foreign trade added 0.2.
The figures do not tally exactly due to rounding.
    In July/September, domestic demand contributed one
percentage point to GNP growth while foreign trade knocked off
0.3 point.
    Of the 0.2 point contribution of foreign trade to GNP last
quarter, falling exports knocked off 0.2 while falling imports
contributed 0.4 point.
    Total export volume fell 1.2 pct quarter on quarter in
October/December. Imports also fell, by 2.9 pct.
    Of the 0.5 point contribution of domestic demand to
October/December GNP growth, the private sector accounted for
0.4 point and the public sector, 0.2.
    The private sector contribution included 0.3 point for
housebuilding, 0.4 for corporate capital outlays and 0.1 for
stockbuilding. Consumer spending had a 0.4 negative impact.


.I 10720
.C
gnp
.W
JAPAN OFFICIALS SEE DIFFICULTY HITTING GNP TARGET.
    TOKYO, March 17 - The government will find it very
difficult to achieve its new gross national product (GNP)
forecast of three pct growth in the fiscal year ending March
31, Economic Planning Agency officials said.
    They made the comment to reporters after news that GNP rose
0.8 pct in the October/December quarter, after a 0.7 pct
increase the previous three months.
    For Japan to achieve three pct growth in 1986/87, GNP in
the January/March period would have to grow 2.6 pct from
October/December, the officials said. The government lowered
its GNP forecast for 1986/87 from four pct last December.


.I 10721
.C
acq
.W
FAIRCHILD DEAL FAILURE SEEN MAKING JAPANESE WARY.
    By Linda Sieg, Reuters
    TOKYO, March 17 - Schlumberger Ltd's <SLB.N> decision to
end an agreement in principle for Fujitsu Ltd <ITSU.T> to buy
80 pct of its <Fairchild Semiconductor Corp>, and the political
furore that surrounded the proposed sale, will make Japanese
companies more cautious in their efforts to acquire U.S. High
technology firms but will not halt such attempts, industry
analysts said.
    The collapse of the deal will not be a critical blow to
Fujitsu but it will boost the cost of future U.S. Expansion by
the Japanese firm, said analysts polled by Reuters.
    "The acquisition of Fairchild is not essential to Fujitsu's
North American operations, but it would have been a great
boost," James Capel and Co analyst Tom Murtha said.
    French-controlled Schlumberger said yesterday it was ending
the agreement because mounting political controversy in the
U.S. Made it unlikely that the sale of the Fairchild stake
could be completed in a reasonable time.
    The sale was opposed by the U.S. Commerce Department and
Defence Department, partly on national security grounds.
    Fujitsu's acquisition of Fairchild would have given the
Japanese computer maker control of a comprehensive North
American sales and distribution system and access to
microprocessor technology, an area where Fujitsu is weak,
analysts said.
    The deal would also have given Fujitsu 14 additional
microchip production facilities worldwide, eight of them in the
U.S., A report by the Capel firm said.
    "It was an entry point, a port for semiconductors and a
marketing channel for other things," said Barclays de Zoete Wedd
analyst Rick May.
    Several analysts said the purchase would not have given
Fujitsu access to critical defence technology.
    "(Fairchild) simply doesn't have key technology -- that's a
thing of the past," May said.
    The failure could be a blessing in disguise for Fujitsu as
it might have had to spend several hundred million dollars to
modernise Fairchild's production lines, Capel's Murtha said.
    The failure of the deal will doubtless encourage Japanese
firms to take a lower profile in attempts to acquire U.S. High
tech firms but they are unlikely to stop, analysts said.
    Most analysts said Fujitsu was likely to go the more costly
route of expanding its own production and distribution
facilities in the U.S., Although some said it could use the
estimated 200 mln dlrs set aside for buying Fairchild to try to
acquire some less politically symbolic firm.
    "It may slow the pace of Japanese acquisitions, but the
necessity of expanding their production and design capacity in
America remains," said Capel's Murtha. "The Japanese will
continue to shop for bargains, but it will be harder to find
ones that are politically acceptable."
    Japanese firms are likely to favour joint ventures or
smaller equity stakes in firms to avoid the political backlash
that blocked the Fairchild sale, analysts said. "They're not
going to slow up, they're just going to buy smaller pieces ...
Because of the political risk," said Barclays de Zoete's May.
    Several Japanese firms have already taken 10 to 30 pct
shares in smaller U.S. High technology firms such as super
minicomputer makers, he said.
    Opposition of the sort that blocked Fujitsu could end up
harming U.S. Firms and undermining a trend toward multinational
tie-ups, some analysts said.
    "This is not really of benefit to U.S. Firms either," said
Jardine Fleming (Securities) Ltd analyst Nick Edwards. "The
pooling of resources in semiconductors is a positive move --
why should the government step in to prevent it?"
    Japan's Minister of International Trade and Industry Hajime
Tamura told a press conference that interference by U.S.
Government officials in the Fairchild deal was inappropriate.
    "This is entirely a private sector matter and not a matter
for governments' comment," Tamura said. "I think it was improper
for U.S. Government officials to intervene to the extent they
did," he said.
    A spokesman told Reuters the ministry's view is that
international investment flows ought to be free and that such
flows are of increasing importance in line with the growing
closeness of U.S.-Japanese economic ties.


.I 10723
.C
trade
.W
S.KOREA SAYS JAPAN COMPLAINS TO GATT ON TRADE PLAN.
    SEOUL, March 17 - Japan has complained to the secretariat
of the General Agreement on Tariffs and Trade (GATT) that South
Korea's five-year plan to cut its trade deficit with Japan
breaks GATT rules, Trade Ministry officials here said.
    They said Japan submitted a report earlier this month
alleging South Korea's plan to import less from Japan and more
from the U.S. And elsewhere was tantamount to creating
non-tariff trade barriers.
    South Korea unveiled the plan in November. It said it hoped
to narrow its trade deficit with Japan to two billion dlrs by
1991.
    South Korea's trade deficit with Japan was a record 5.45
billion dlrs in 1986, and rose to 752 mln dlrs in the first two
months of 1987 from 727 mln in the same 1986 period.
    The plan envisages giving incentives to importers not to
import Japanese goods, and to exporters to sell more to Japan.
    The officials said they believed the Japanese action, one
step short of filing a suit, was designed to bring South Korea
to the negotiating table and stop the plan.
    The Seoul government wants Tokyo to ease various import
restrictions and simplify customs inspections for South Korean
goods to help reduce the trade deficit.


.I 10724
.C
money-fx;austdlr;
.W
AUSTRALIAN CURRENCY TRADING SET RECORD IN JANUARY.
    SYDNEY, March 17 - Spot volume in the Australian foreign
exchange market jumped to a record 22.63 billion dlrs a day in
January from 16.18 billion in December and 8.27 billion a year
earlier, the Reserve Bank said in its monthly bulletin.
    The previous record was 17.51 billion dlrs last August.
    The peak broke a steady trading trend of 15 to 17 billion
dlrs a day seen in the second half of 1986.
    Including forward deals, total deliverable volume was 27.01
billion dlrs a day (13.43 billion against the Australian
dollar) against 19.56 billion (8.48 billion) in December and
9.92 billion (5.88 billion) a year earlier, the bank said.


.I 10725
.C
livestock;carcass;
.W
JAPAN SEEN REDUCING BEEF, PORK INTERVENTION PRICES.
    TOKYO, March 17 - The Agriculture Ministry is expected to
reduce official intervention prices for beef and pork in
1987/88 starting in April, but the cutback ratio has not been
set yet, industry sources said.
    Production prices, the basis for setting intervention
prices, have been falling because of declining compound feed
prices due to low coarse grain import prices, they said.
    Last November an advisory panel urged the government to
work on reducing officially set high farm product prices to
levels closer to international values, the sources added.
    In Japan the government maintains a price stabilisation
zone system for beef and pork to support domestic producers.
    The stabilisation zone is kept by the semi-government
Livestock Industry Promotion Corp (LIPC) through a buffer stock
operation in the wholesale market.
    The 1987/88 beef and pork price stabilisation zone will be
set by the end of March after an advisory panel to the
Agriculture Ministry recommends the price zone at a meeting on
March 25, ministry officials said. At present, the standard or
bottom price of castrated wagyu beef, known as marbled beef, is
1,400 yen per kilo, while its ceiling is 1,820, they said.
    The standard price of other beef, mainly produced from
dairy steers, is now 1,090 yen per kilo and the ceiling is
1,420, the officials said. The pork standard price is now 540
yen per kilo and the ceiling 760.
    They said the domestic beef intervention price influences
imported beef selling prices on the domestic market.
    Japan sets an annual beef import quota. A semi-government
body imports most of this and releases it to wholesalers or
processors in line with the standard price of other beef
categories in an attempt to avoid jeoparadising domestic beef
prices, they said.


.I 10727
.C
money-fx;interest;
.W
****** Danish central bank cuts overnight money market interest rate to 10.5 pct from 11 pct - official.
Blah blah blah.

.I 10728
.C
earn
.W
MITSUBISHI CHEMICAL INDUSTRIES LTD <MCIT.T> YEAR.
    TOKYO, March 17 - Year ended January 31
    Parent shr 5.73 yen vs 5.80
    Div five yen vs same
    Net 7.01 billion vs 6.77 billion
    Current 24.06 billion vs 23.76 billion
    Operating 37.62 billion vs 45.26 billion
    Sales 630.08 billion vs 810.89 billion
    NOTE - Company forecast for current year parent div five
yen, net seven to eight billion, current 24 billion, sales 610
billion.


.I 10731
.C
ship
.W
JAPAN FOREIGN SHIPBUILDING ORDERS RISE IN FEBRUARY.
    TOKYO, March 17 - New foreign shipbuilding orders received
by Japanese yards in February rose to six vessels totalling
329,999 gross tons from three ships of 79,499 tons in January,
the Japan Ship Exporters Association said.
    This compared with six ships of 125,150 gross tons a year
earlier, an association official said.
    The backlog of orders at end-February was 157 ships of 4.41
mln gross tons against 161 ships of 4.39 mln a month earlier
and 265 vessels of 6.81 mln a year earlier, an association
official said.


.I 10733
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 450 MLN STG.
    LONDON, March 17 - The Bank of England said it forecast a
shortage of around 450 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 650 mln stg while banker's balances below target will take
out around 50 mln stg.
    Partly offsetting these outflows, exchequer transactions
and a fall in note circulation will add some 200 mln stg and 50
mln stg to the system respectively.


.I 10736
.C
earn
.W
CCIC FINANCE LTD - YEAR TO DEC 31.
    HONG KONG, March 17 -
    Net profit 16.66 mln H.K. Dlrs vs 11.28 mln
    Total divs to shareholders 7.5 mln vs nil
    Note - Firm underwrote 23 capital market issues in 1986.
Next industrial transaction in May is syndication of a 35 mln
U.S. Dlr loan to the Shanghai Ta Chun Tyre Project. The company
is a joint venture merchant bank between the <Bank of China>,
<First National Bank of Chicago> and the Industrial Bank of
Japan <IBJT.T>


.I 10740
.C
grain
.W
SOUTHEAST CHINA CROPS SAVED BY HEAVY RAIN.
    PEKING, March 17 - The heaviest rains for seven months are
believed to have saved more than one mln hectares of
drought-threatened crops in southeast China, the official New
China News Agency said.
    This week's rains have alleviated drought conditions in
Guangdong Province, the agency said.
    China has warned that this year's harvest will be affected
by drought in many areas.


.I 10741
.C
copper
.W
ZAMBIA STOPS SENDING COPPER THROUGH SOUTH AFRICA.
    LUSAKA, March 17 - Zambia has stopped sending its copper
exports through South Africa, the official Times of Zambia
said.
    The newspaper yesterday quoted highly placed sources as
saying the state-owned Zambia Consolidated Copper Mines (ZCCM)
was diverting its mineral exports away from South Africa, but
it did not say which alternative routes were being used.
    ZCCM officials declined to comment on the report, but
Standwell Mapara, general manager of the Tanzania-Zambia
Railway Authority (TAZARA), told Reuters recently virtually all
Zambian mineral exports had been channelled along the TAZARA
line to Dar es Salaam for the last three months.
    During that period no Zambian copper had been shipped
through Zimbabwe to the Mozambican port of Beira - the only
other available route which avoids South Africa, Mapara said.
    Last December TAZARA carried 36,000 tonnes of Zambian
mineral ore, the line's record for any one month period, he
added.
    Copper, cobalt and other mineral exports account for 95 to
98 pct of Zambia's foreign exchange earnings and President
Kenneth Kaunda told Reuters in a recent interview it was vital
for his country to assure new outlets for them, avoiding the
traditional route through South Africa.
    Referring to Zambia's preparations for a possible cut in
economic links with South Africa, Kaunda told Reuters in an
interview on March 1, "My main concern, of course, is the mines
because whatever happens we must continue to run the mines."
    According to Mapara, TAZARA handled 1.1 mln tonnes of
freight last year and is still working well below its present
1.4 mln capacity. Kaunda said that once preparations had been
completed for evacuating Zambia's mineral exports on safe and
dependable routes his government would look to increase its
usage of TAZARA for other types of cargo.
    The 1986 annual report of Zambia's state-run Metal
Marketing Corporation said 81 pct of the country's metal
exports were channelled through Dar es Salaam last year, versus
79 pct in 1985. The report said Zambian copper production fell
to 463,000 tonnes last year from 526,000 in 1985.
    Despite the official optimism about diversifying Zambia's
export routes, diplomatic sources in Lusaka expressed
reservations about the capacity of Dar es Salaam and Beira
ports to handle all of Zambia's mineral exports, even if they
could be hauled there by train.
    "The two ports cannot in any way and in their present form
handle the huge exports of Zambian copper," one western diplomat
said.
    "A serious disruption in copper movement to the markets
could be brought about as it would pile up at the two ports
which lack the facilities and space to handle the copper
tonnage," he added.


.I 10744
.C
cpi
.W
OECD JANUARY ANNUAL INFLATION STEADY AT 2.1 PCT.
    PARIS, March 17 - Inflation in the 24 industrialised
nations of the Organisation for Economic Cooperation and
Development was 2.1 pct in the year to January, unchanged from
December, the OECD said.
    But monthly inflation throughout the OECD was an average
0.4 pct in January, a rise compared to the 0.2 pct in the last
quarter.
    Retail energy prices rose strongly in January, reflecting
the firming of world oil prices. For OECD states the increase
was 0.7 pct but the January level of retail energy prices was
still 11.6 pct lower than a year earlier, the OECD said.
    The increase in consumer prices excluding food and energy,
at 0.4 pct in January for the whole OECD area, was unchanged on
the four previous months, but over the year to January OECD
consumer prices rose by 3.5 pct, against 3.3 pct in December.
    Unadjusted annual inflation for the seven leading
industrialised nations in January was running at 4.4 pct in
Italy, 3.9 pct in Britain and Canada, three pct in France, 1.4
pct in the U.S., Minus 0.8 pct in West Germany and minus 1.5
pct in Japan, the OECD said.


.I 10747
.C
oilseed
.W
CARGILL STRIKE TALKS CONTINUING TODAY.
    LONDON, March 17 - Further talks will be held this morning
at Cargill U.K. Ltd's oilseed processing plant at Seaforth,
after yesterday's meeting between management and unions failed
to produce a solution to end the three month old strike, a
company spokesman said.
    Talks will be extended to tomorrow if there is no
breakthrough in today's session, he said.


.I 10749
.C
sugar
.W
INDONESIAN SUGAR OUTPUT FORECAST TO RISE IN 1987.
    JAKARTA, March 17 - Indonesian sugar output is forecast by
the government to reach 2.126 mln tonnes in calendar 1987
against projected consumption of 2.039 mln tonnes, Agriculture
Minister Achmad Affandi said.
    Production in 1986, when Indonesia was forced to import
sugar, is officially estimated at 2.016 mln tonnes against
1.728 mln in 1985.
    The U.S. Embassy said in its annual Agriculture Report on
Indonesia there were growing signs that actual output was lower
than official figures. It estimated 1986 production at 1.8 mln
tonnes and forecast little change for 1987.
    Indonesia imported 162,000 tonnes of sugar towards the end
of last year and in early 1987 to boost low stocks.
    Affandi told reporters stocks fel to as low as 159,000
tonnes at the beginning of 1987. Industry sources said this
represented under one month's consumption.
    The minister said Indonesia should hold three months'
supply, or 510,000 tonnes.
    A spokesman for the National Logistics Bureau, which
distributes and stores sugar, said stocks this month were
489,437 tonnes. The harvesting season begins in April.


.I 10750
.C
interest;money-supply;
.W
TAIWAN ISSUES MORE CERTIFICATES OF DEPOSIT.
    TAIPEI, March 17 - Taiwan's central bank issued 12 billion
Taiwan dlrs worth of certificates of deposit after issuing six
billion yesterday, bringing CD issues so far this year to
115.47 billion dlrs, a bank official told Reuters.
    The new CDs have maturities of six months, one year and two
years and bear interest rates ranging from 4.07 pct to 5.12
pct, he said.
    The issues are aimed at helping curb the growth of M-1b
money supply, which is the result of large foreign exchange
reserves. The reserves now total more than 51 billion U.S.
Dlrs.


.I 10752
.C
bop
.W
******FRENCH JANUARY PAYMENTS SURPLUS 0.3 BILLION FRANCS (3.8 BILLION DECEMBER SURPLUS)-OFFICIAL.
Blah blah blah.

.I 10753
.C
wpi
.W
ITALIAN WHOLESALE PRICES UP 1.1 PCT IN JANUARY.
    ROME, March 17 - The wholesale price index rose 1.1 pct
month-on-month in January 1987 after increasing by 0.3 pct in
December 1986, the national statistics institute Istat said.
    The index, base 1980 equals 100, registered 172.8 in
January compared with 170.9 in December.
    The January 1987 figure represents a fall over January 1986
of 1.7 pct after a year-on-year decrease in December 1986 of
2.5 pct.


.I 10755
.C
money-fx;reserves;
.W
TAIWAN SAID CONSIDERING CURRENCY LIBERALISATION.
    TAIPEI, March 17 - Taiwan's central bank is considering
proposals to ease currency restrictions to reduce foreign
exchange reserves of 51 billion U.S. Dlrs, a local newspaper
reported today.
    The China Times, which has close ties with the government,
quoted central bank governor Chang Chi-cheng as saying the
government had agreed in principle to liberalise financial
restrictions.
    The bank was considering proposals to allow firms and
individuals to hold foreign exchange and invest in foreign
stocks for the first time, Chang was quoted as saying.
    All foreign exchange must now be handed to local banks and
exchanged for local currency. Firms and individuals may only
invest in foreign government bonds, treasury bills and
certificates of deposit.
    Central bank and other government officials were not
available to comment on the report.
    Economists said it was likely that the government would
ease foreign exchange controls, but only gradually.
    They said vast foreign currency reserves, earned mainly
from huge trade surpluses with the United States, made Taiwan a
target for U.S. Protectionism.
    Taiwan's trade surplus with the U.S. Rose to 13.6 billion
U.S. Dlrs last year compared with 10.2 billion in 1985.
    "The central bank has to go in this direction," said Su
Han-min, chief economist with the International Commercial Bank
of China. "If they don't quicken the pace, Washington could
retaliate and really damage Taiwan."


.I 10756
.C
bop
.W
FRENCH PAYMENTS SURPLUS SHRINKS IN JANUARY.
    PARIS, March 17 - France's current account payments surplus
slipped to a provisional 300 mln francs, seasonally adjusted,
in January from a downward revised surplus of 3.8 billion in
December, the Finance Ministry said.
    The December figure was revised from a provisional 4.8
billion franc surplus reported a month ago.
    On an unadjusted basis, January payments showed a 5.2
billion franc deficit after a revised 7.1 billion December
surplus. The December unadjusted surplus was revised down from
a provisional 8.2 billion.
    The Ministry said trade, measured on balance of payments
criteria, showed an unadjusted 7.1 billion franc January
deficit while services showed a 3.7 billion surplus.
    Other items, mainly including unilateral transfers, showed
a 1.8 billion deficit.
    The current account showed an adjusted surplus of 6.1
billion francs in January last year, and an unadjusted deficit
of one billion.
    The full year 1986 current account surplus was reported
last month at 25.8 billion francs.


.I 10759
.C
ipi
.W
******U.K. JAN INDUSTRIAL OUTPUT RISES 0.4 PCT, MANUFACTURING DOWN 2.3 PCT - OFFICIAL.
Blah blah blah.

.I 10761
.C
grain;corn;
.W
ZIMBABWE MAIZE OUTPUT TO FALL 65 PCT.
    HARARE, March 17 - Maize deliveries to Zimbabwe's
state-owned Grain Marketing Board (GMB) will fall by over 65
pct this year, following a prolonged dry spell, agricultural
industry sources said.
    They said 1987 maize deliveries are expected to decline to
around 520,000 tonnes from 1.6 mln tonnes last year. About 60
pct of the maize will be delivered by large-scale commercial
farmers and the balance by small-scale peasant producers.
    Although this will be the lowest level of maize deliveries
since 1980, the sources said there is no danger of a food
shortage in Zimbabwe.
    While annual maize consumption is estimated at 750,000
tonnes, the GMB stockpile is currently around 1.8 mln tonnes,
which means that even with the sharply reduced production this
year Zimbabwe has enough maize for the next three years.
    The sources said the lower maize crop would be offset by a
25 pct increase in cotton production to 315,000 tonnes from
248,000 tonnes last year, and by a rise of 20 pct in soybean
deliveries to 100,000 tonnes from 84,000 tonnes in 1986.


.I 10762
.C
ipi
.W
U.K. INDUSTRIAL OUTPUT RISES IN JANUARY.
    LONDON, March 17 - U.K. Industrial production rose a
provisional 0.4 pct in January after a 0.6 pct decline in
December 1986, figures from the Central Statistical Office
show.
    The index for industrial production, base 1980, was set at
a seasonally adjusted 109.8 in January after December's 109.4
and compared with 108.2 a year earlier.
    Output of manufacturing industries fell a provisional 2.3
pct in January after a 0.2 pct rise last December.
    The index for manufacturing, base 1980, fell to 103.9 from
106.3, and compared with 102.3 a year earlier.
    The CSO said industrial production in the three months to
January was provisionally estimated to have fallen by 0.7 pct
from the level of the previous three months, while
manufacturing output rose by 0.5 pct in the same period.
    In the three months, industrial production was 1.5 pct
higher than in the same period a year earlier, while
manufacturing output was two pct higher.
    Within manufacturing, output of the metals industry rose by
six pct and that of engineering and allied industries by one
pct between the two latest three month periods. Output of
chemicals and textiles fell by one pct and minerals by two pct.
    The Office said output of the investment goods industries
rose 0.1 pct while consumer goods output increased 0.6 pct.
    Output of intermediate goods fell 1.6 pct between the two
latest three-month periods.
    The figures showed the energy production index, base 1980,
rose 7.2 pct in January to 126.4 from December's 117.9 and from
124.6 in January 1986.
    In the latest three months, the energy index, which
comprises oil, natural gas and coal production, was down 3.5
pct on the previous quarter and 0.5 pct below the same period a
year earlier.


.I 10763
.C
gnp
.W
ZIMBABWE GDP RISES 0.2 PCT IN 1986.
    HARARE, March 17 - Zimbabwe's real gross domestic product
increased 0.2 pct in 1986, according to preliminary figures
published by the Central Statistical Office (CSO). This
contrasts with a rise of more than nine pct in 1985.
    The main reason for the slower rate of economic growth was
a drop in the real value of agricultural output. This declined
12 pct in 1986 following a 24 pct improvement the previous
year. Mining output fell one pct in 1986 but manufacturing
production increased 1.4 pct.
    The CSO said that at current prices GDP rose 12.7 pct to
8.2 billion Zimbabwe dlrs, but inflation, measured by the GDP
deflator, was estimated at 12.2 pct, so there was virtually no
growth in real output during 1986.


.I 10764
.C
trade
.W
JAPAN SAYS U.S.-JAPAN MICROCHIP PACT WORKING.
    TOKYO, March 17 - Japanese officials sought to convince the
U.S. That a U.S.-Japan pact on microchip trade is working ahead
of an April 1 deadline set by the U.S. For them to prove their
case.
    "We are implementing the agreement in good faith and the
situation does not run counter to the pact," Osamu Watanabe,
Director of the Ministry of International Trade and Industry's
(MITI) Americas and Oceanic Division, told foreign reporters.
    "The effects of the measures we have taken and are taking
are emerging in the market place," he said.
    U.S. Trade officials have repeatedly accused Japanese
microchip makers of violating the pact by continuing to sell at
below cost in markets outside Japan and the United States.
    The agreement, signed last September, aimed at halting
predatory Japanese pricing policies and increasing U.S.
Semiconductor firms' access to the Japanese market.
    The comments by MITI officials followed a call by Prime
Minsiter Yasuhiro Nakasone to clear up any misunderstandings on
the U.S. Side about the pact, Watanabe said.
    Yukio Honda, director of MITI's Industrial Electronics
Division, denied that Japanese chipmakers were selling at below
cost in third countries.
    MITI's call to Japanese chip makers last month to cut
production of key memory chips in the first quarter of this
year has begun to dry up the source of cheap chips for sale in
the non-regulated grey market, Honda said.
    "The grey market exports from Japan are shrinking now, but
in contrast U.S. And South Korean companies are expanding
market share because of their cheaper prices," Honda said.
    MITI plans to take further steps to reduce the excess
supply of inexpensive chips which developed in Japan after the
pact was formed because of a slump in Japanese semiconductor
exports to the United States, he added.
    The ministry will soon release its supply-demand guidelines
for the second quarter and suggested production volumes are
likely to be lower than that for the first quarter, he said.
    Despite businessmen's ingenuity in finding ways around any
artificial controls, regulation of supply and demand should
bring positive results, Watanabe said. "I am optimistic," he
added.


.I 10766
.C
ship;crude;trade;
.W
LOOPHOLE FOR TANKERS IN NORWAY'S S. AFRICA BAN.
    OSLO, March 17 - Norway's parliament has approved an
extensive trade ban against South Africa but left shipowners a
key loophole through which controversial oil shipments on
Norwegian tankers may continue, government officials said.
    The unilateral boycott gives domestic companies until late
September to cut trade ties with South Africa and Namibia.
    Although forbidding crude oil shipments to South Africa on
Norwegian-owned tankers, the boycott makes a crucial exception
for ships whose final destination is decided while at sea. As
oil cargoes are often resold after loading, critics said the
door will be left open for continued shipments to South Africa.
    Norwegian tankers supplied South Africa with about 30 pct
of its crude oil imports during the early 1980s, but the trade
has dropped sharply to just one cargo in the last three months,
trade ministry officials said.
    The latest trade figures show Norwegian imports from South
Africa dropped 36 pct to 160 mln crowns during the first eight
months of 1986, while exports plunged 52 pct to 265 mln crowns
from the year-ago figure.
    The boycott legislation now goes to the upper house for
formal ratification later this week, parliamentarians said.


.I 10768
.C
acq
.W
HANSON SELLS FINLAYS UNIT FOR 16.9 MLN STG.
    LONDON, March 17 - Hanson Trust Plc <HNSN.L> said it will
sell its Finlays confectionery, tobacco and newsagent business
to a specially formed company, <Finlays Plc> for an estimated
16.9 mln stg cash.
    The chain of stores was acquired when Hanson took over
<Imperial Group Plc> last year.


.I 10772
.C
money-fx
.W
DOLLAR SEEN FALLING UNLESS JAPAN SPURS ECONOMY.
    By Rie Sagawa, Reuters
    TOKYO, March 17 - Underlying dollar sentiment is bearish,
and operators may push the currency to a new low unless Japan
takes steps to stimulate its economy as pledged in the Paris
accord, foreign exchange analysts polled by Reuters said here.
    "The dollar is expected to try its psychological barrier of
150.00 yen and to fall even below that level," a senior dealer
at one leading bank said.
    The dollar has eased this week, but remains stable at
around 151.50 yen. Six major industrial countries agreed at a
meeting in Paris in February to foster currency stability.
    Some dealers said the dollar may decline in the long term,
but a drastic fall is unlikely because of U.S. Fears of renewed
inflation and fears of reduced Japanese purchases of U.S.
Treasury securities, needed to finance the U.S. Deficit.
    Dealers generally doubted whether any economic package
Japan could adopt soon would be effective enough to reduce its
trade surplus significantly, and said such measures would
probably invite further U.S. Steps to weaken the dollar.
    Under the Paris accord, Tokyo promised a package of
measures after the fiscal 1987 budget was passed to boost
domestic demand, increase imports and cut its trade surplus.
    But debate on the budget has been delayed by an opposition
boycott of Parliamentary business over the proposed imposition
of a five pct sales tax, and the government has only a slim
chance of producing a meaningful economic package in the near
future, the dealers said.
    If no such steps are taken, protectionist sentiment in the
U.S. Congress will grow, putting greater downward pressure on
the dollar, they said.
    The factors affecting the U.S. Currency have not changed
since before the Paris accord, they added.
    "Underlying sentiment for the dollar remains bearish due to
a still-sluggish U.S. Economic outlook, the international debt
crisis triggered by Brazil's unilateral suspension of interest
payments on its foreign debts and the reduced clout of the
Reagan administration as a result of the Iran/Contra arms
scandal," said a senior dealer at a leading trust bank.
    "There is a possibility that the dollar may decline to
around 140.00 yen by the end of this year," said Chemical Bank
Tokyo branch vice president Yukuo Takahashi.
    But operators find it hard to push the dollar either way
for fear of possible concerted central bank intervention.
    Dealers said there were widespread rumours that the U.S.
Federal Reserve telephoned some banks in New York to ask for
quotes last Wednesday, and even intervened to sell the dollar
when it rose to 1.87 marks.
    The Bank of England also apparently sold sterling in London
when it neared 1.60 dlrs on Wednesday, they said.
    But other dealers said they doubted the efficacy of central
bank intervention, saying it may stimulate the dollar's decline
because many dealers are likely to await such dollar buying
intervention as a chance to sell dollars.
    However, First National Bank of Chicago Tokyo Branch
assistant manager Hiroshi Mochizuki said "The dollar will not
show drastic movement at least to the end of March."
    Other dealers said the U.S. Seems unwilling to see any
strong dollar swing until Japanese companies close their books
for the fiscal year ending on March 31, because a weak dollar
would give Japanese institutional investors paper losses on
their foreign holdings, which could make them lose interest in
purchases of U.S. Treasury securities.
    U.S. Monetary officials may refrain from making any
comments this month to avoid influencing rates, they said.


.I 10774
.C
money-fx;interest;
.W
U.K. MONEY MARKET RECEIVES NO MORNING ASSISTANCE.
    LONDON, March 17 - The Bank of England said it did not
operate in the money market in the morning session.
    Earlier, the central bank had estimated the deficit in the
system today at some 450 mln stg.


.I 10779
.C
ship;crude;
.W
IRAN SAID TO ATTACK CYPRIOT TANKER.
    TOKYO, March 17 - A Cypriot tanker was set ablaze in the
Persian Gulf yesterday after an Iranian gunboat fired missiles
at it, shipping sources quoting reports from Japanese tankers
said today.
    No casualties were seen and the tanker Pivot, laden with
crude oil, was towed towards Dubai by tugs after they put out
the fire, the sources said.
    Iranian gunboats usually check a ship's nationality and
cargo before attacking but the Pivot was hit near Bu Musa
island without warning, they added.


.I 10781
.C
alum
.W
BILLITON SEEKS CHANGE IN SURINAM POLICIES.
    LEIDSCHENDAM, Netherlands, March 17 - <Billiton
International Metals B.V.>, the Dutch mining company, has urged
Surinam to change policies it says are causing heavy losses on
bauxite mining operations there, a company spokesman said.
    He told Reuters that Billiton, a fully-owned Royal
Dutch/Shell <RD.AS> subsidiary, presented the demands to Henk
Heidweiler, a top aide to Surinam military leader Desi
Bouterse, who visited the Netherlands last week for official
talks.
    Billiton and <Suralco>, owned by U.S. Conglomerate Alcoa
<AA.S>, both want devaluation, and lower wages, welfare
contributions, taxes on bauxite and energy prices.
    The two firms are the biggest private sector employers in
Surinam. Billiton also urged Heidweiler to improve the safety
of its employees in the campaign against a jungle guerilla
group, the spokesman said, adding rebel fighting since July
1986 had depressed production at Billiton and Suralco plants.
    High voltage cables from the power plant of Afobakka have
been cut, and a bauxite mine at Moengo has been shut, he added.
    "We are already making vast losses in Surinam and you can't
expect any company to remain operating with losses," the
spokesman said.


.I 10783
.C
ship
.W
DUTCH PORT EMPLOYERS RESUME LAY-OFF PLANS.
    ROTTERDAM, March 17 - Employers in Rotterdam's troubled
general cargo sector have decided to restart stalled redundancy
procedures within a week, employers' organisation labour
relations manager Gerard Zeebregts told Reuters.
    Port and transport union spokesman Bert Duim said the
employers' decision would not lead to the immediate resumption
of eight weeks of strikes in the sector.
    The strike action was called off on Friday after an interim
court injunction against the employers' plans for 350
redundancies this year.
    A court in Amsterdam ruled last week the employers had made
an error in the complicated procedure for obtaining permission
for the redundancies and therefore could not proceed until a
final ruling on May 7.
    Zeebregts said the initiation of new procedure might well
take up to two months, but the employers were not prepared
simply to sit and wait for the May 7 court ruling with the
chance they would have to start all over again in any case.
    "We cannot afford not to continue with our plans. The
strikes have already cost a lot of money and damaged business,
and further delays would do even more damage," Zeebregts said.
    The campaign of lightning strikes in the port's general
cargo sector began on January 19 in protest at employers' plans
for 800 redundancies from the sector's 4,000 strong workforce
by 1990, starting with 350 this year.


.I 10786
.C
acq
.W
COMMERCIAL INTERNATIONAL <CMMC> MAKES PURCHASE.
    LOS ANGELES, March 17 - Commercial International Corp said
it has completed the previously-announced acquisition of most
of the assets of Growers Distributing International Corp, a
table grape marketer, for an undisclosed amount.
    It said the entire purchase price will be payable over a
three-year period and based on a percentage of pre-tax earnings
of the acquired operation.
    The company said it has an option to acquire Growers' cold
storage facility and related assets in Tulare County, Calif.
Growers is owned by Commercial chairman Sid Schuman Jr. and
director Arnold T. Cattani Jr.


.I 10788
.C
acq
.W
<TIMEX CORP> SELLS UNIT.
    NEW YORK, March 17 - <Swiss Corp for Microelectronics and
Watchmaking Industries> said it has acquired International time
corp from privately-held Timex corp for undisclosed terms.
    International Time is exclusive distributor of Swiss Corp's
Tissot watches in the U.S.


.I 10789
.C
acq
.W
<WAVEHILL INTERNATIONAL INC> MAKES PURCHSE.
    NEW YORK, March 17 - Wavehill International Ventures Inc
said it has completed the previously-announced acquisition of
Personal Computer Rental corp for 500,000 restricted common
shares, giving former shareholders of Personal Computer a 25
pct interest in the combined company.


.I 10792
.C
gnp
.W
ECONOMISTS SEE SLUGGISH JAPANESE ECONOMY AHEAD.
    By Kunio Inoue, Reuters
    TOKYO, March 17 - The Japanese economy will remain sluggish
in the months ahead after turning in its worst performance for
12 years in 1986, private economists said.
    Consumer spending, a main driving force of domestic demand,
was likely to remain lacklustre although brisk housing and
business investment would help sustain the economy this year,
the economists said.
    They said they were shocked by an Economic Planning Agency
report today that private spending fell 0.7 pct in the Oct/Dec
quarter for the first time in 12 years.
    The report said Japan's gross national product rose a real
0.8 pct in Oct/Dec after a revised 0.7 pct increase in the
previous quarter.
    It said GNP growth for 1986 was a real 2.5 pct, down from
4.7 pct in 1985. Agency officials said this was the worst
performance since 1974 when GNP contracted 1.4 pct in the wake
of the first oil crisis.
    They expressed concern about the 0.7 pct decline in
consumer spending in the final quarter of 1986 but said it was
only temporary as exceptionally warm winter weather had
depressed retail sales.
    But most private economists disagreed and said consumers
were likely to remain pessimistic in coming months as they saw
their real income level off.
    "Sure, consumers may have spent less on winter clothes or
heating apparatus because of the warm winter this year, but
they have done so because they have become even more uneasy
about their future pay rises," said Shoji Saito, general manager
of Mitsui Bank's economic research division.
    He said the outlook for pay increases was gloomy because of
 falling employment in many industries, particularly those hit
hard by the yen's rise.
    Masao Suzaki, senior economist at the Bank of Tokyo, said
weakened consumer confidence was the most worrying factor.
Without brisk consumer spending, Japan can hardly achieve
domestically generated economic growth as the government has
put a lid on fiscal measures, he said.
    Other economists said the 0.8 pct growth registered in
Oct/Dec may have been inflated by special factors, including
exceptionally heavy spending in the public sector. Johsen
Takahashi, chief economist at Mitsubishi Research Institute,
said the 14.4 pct increase in public sector spending in Oct/Dec
resulted from an issue of gold coins.
    "This is just a one-shot spending and we can't expect that
high level of public-sector consumption in the following
quarter," Takahashi said. Agency officials said public spending
would have risen 1.1 pct in Oct/Dec without the issue, which
marked 60 years of Emperor Hirohito's reign.
    Takahashi said the economy might contract in the current
quarter given the lack of additional significant government
spending and sluggish consumer spending.
    Saito said the most effective government action would be
income tax cuts and the postponement beyond next January of a
proposed controversial sales tax.


.I 10793
.C
cocoa
.W
COCOA WORKING GROUP MEETING DELAYED.
    LONDON, March 17 - The International Cocoa Organization
(ICCO) buffer stock working group meeting set for 1130 GMT
today was rescheduled for 1430, ICCO delegates said.
    The meeting was delayed so a draft compromise proposal on
buffer stock rules could be completed, they said.
    ICCO Executive Director Kobena Erbynn was preparing the
plan in consultation with other delegates for presentation to
the full working group, they added.


.I 10796
.C
housing
.W
******U.S. FEB HOUSING STARTS ROSE 2.6 PCT TO 1.851 MLN, PERMITS ROSE 4.4 PCT TO 1.764 MLN.
Blah blah blah.

.I 10799
.C
housing
.W
U.S. HOUSING STARTS ROSE 2.6 PCT IN FEBRUARY.
    WASHINGTON, March 17 - U.S. housing starts rose 2.6 pct in
February to a seasonally adjusted annual rate of 1,851,000
units, the Commerce Department said.
    In January, housing starts fell a revised 0.5 pct to
1,804,000 units. The department previously said they fell 0.1
pct.
    The rate at which permits were issued for future
construction rose in February by 4.4 pct to a seasonally
adjusted 1,764,000 units after falling 11.52 pct to 1,690,000
units in January.
    Permits for single-family houses fell in January by 6.6 pct
to 1,091,000.
    The number of permits for multi-family houses fell in
February by 11.7 pct to 529,000 units after falling in January
by 19.3 pct, the department said.
    Housing starts in February included a seasonally adjusted
5.6 pct rise in single family units to 1,317,000 units and a
4.1 pct fall in multi-family homes to 534,000 units.
    The seasonally adjusted permits total in February for
single family units was 1,235,000 and for multi-family units
was 529,000 units.


.I 10800
.C
meal-feed
.W
SOUTH AMERICAN FISH MEAL PRODUCTION AT RECORD HIGH.
    LONDON, March 17 - Production of fish meal by the three
South American producers -- Chile, Peru and Equador -- last
year reached 2.5 mln tonnes, equalling the record output of
1970, the International Association of Fish Meal Manufacturers
(IAFMM) said.
    However, IAFMM said in a statement that it expected Chilean
and Peruvian fish meal production in the first quarter of 1987
to be much lower than the 651,000 tonnes produced in the last
quarter of 1986, due to a ban on sardine fishing in Chile for
the month of February and to adverse fishing conditions in Peru
in the same month.
    The statement added that, due to technical market promotion
and energetic sales by Chile and Peru, the stock position at
the end of the year remained reasonable.
    Fish meal production outside South America decreased
slightly, falling from 114,400 to 111,100 tonnes.
    The IAFMM said fish meal consumption in 1986 rose in West
Germany, Scandinavian countries, Eastern Europe and the Far
East, but fell in the U.S. And remained static in the U.K.
    It added that fish meal consumption had suffered from
competition with feed grade tallow in the U.S. And with skimmed
milk powder in the U.K.
    IAFMM figures for fish oil production in the main producing
nations, in thousands of tonnes, were -
                    Oct/Dec            Jan/Dec
                 1986    1985       1986     1985
 CHILE             22       8        109       76
 PERU              56      28        238      104
 NORWAY            14      14         97      130
 ICELAND           44      52        102      118
 DENMARK           20      18         88       77
 U.S.              10       8        152      129
 JAPAN             67      91        213      249


.I 10801
.C
copper
.W
TALKING POINT/COPPER STOCKS.
    By Steven Radwell, Reuters
    NEW YORK, March 17 - Copper shares, which have lagged
behind the market, should pick up steam this year on stronger
demand and improving prices for the metal, analysts said.
    "Copper prices should move up over the next four to six
quarters," said Daniel Roling of Merrill Lynch and Co <MER>. "I
see average copper prices at 70 cts a pound in 1988, up from
around 63 or 64 cts, based on tight supply and continued world
economic growth."
    Other analysts see metal prices ranging from 65 to 68 cts a
pound this year and 70 to 73 cts in 1988.
    Analysts said Phelps Dodge Corp <PD> will be a strong
performer because it is the largest U.S. copper producer.
    But Asarco Inc <AR>, with about 45 pct of total sales from
copper, and Newmont Mining Corp <NEM> are also potential
winners, they said. Newmont is spinning off 85 pct of its
copper operations to its shareholders.
    "In theory, Phelps is the best stock. It's the purest play
and benefits most from higher copper prices," one said.
    William Siedenburg of Smith Barney Harris Upham and Co,
said Phelps has lowered costs and streamlined mining
operations. "They've accomplished a great deal," he said.
    The company's move into carbon black, a product used in
tires, should provide steady earnings, although not rapid
growth, as a hedge against a copper downturn, Siedenburg said.
He estimates Phelps will earn 2.45 dlrs in 1987 and 4.45 dlrs
in 1988, including tax benefits, versus 1.79 dlrs in 1986.
    Other analysts, including Clarence Morrison of Dean Witter
Reynolds Inc and Merrill's Roling, also recommend Phelps.
    Morrison projects Phelps will earn 3.25 dlrs in 1987 and
four dlrs in 1988, while Roling sees earnings at 2.75 dlrs this
year and around 3.50 dlrs next year.
    "The stock can go to the mid 30s," Roling said, from its
current level of around 30. But others see it climbing to 40.
    "Their (Phelps Dodge) costs are so low, they don't need
copper prices higher than 70 cts to make a lot of money," said
Vahid Fathi of Prescott Ball and Turben Inc. "The shares will
outperform the market over the next 18 months," he said.
    But Nick Toufexis of Prudential-Bache Securities Inc says
Newmont Mining is a more attractive investment. "We'd rather
place our bets with Newmont. Any way you slice it, I see a
significant premium to the current stock price," he said.
    After the spinoff, which closes next month, Newmont will
have gold operations, including 95 pct of Newmont Gold Co
<NGC>, a 15 pct stake in its copper unit and energy operations,
Toufexis noted.
    Analysts see Newmont earning 2.85 dlrs to three dlrs in
1987 and about 3.75 dlrs in 1988, versus earnings of about 1.40
dlrs from operations in 1986.
    "I'd be buying up to 90," Toufexis said last week, when the
stock rose sharply to near that level. "But the shares are
probably worth about 108 dlrs (each)."
    Dean Witter's Morrison and Fathi of Prescott Ball like
Asarco, because of cost cutting and restructuring. Morrison
sees 1987 earnings at 1.25 dlrs and 1988 at 1.75 against losses
in 1986. Fathi projects Asarco will earn one dlr in 1987 and
from three dlrs to 3.25 dlrs in 1988.
    Roling of Merrill Lynch is recommending Cyprus Minerals Co
<CYPM> in addition to Phelps Dodge. Cyprus has interests in
coal and other minerals aside from copper.
    But Siedenburg of Smith Barney thinks Cyprus is overpriced
at current levels. "I would be willing to sell Cyprus and buy
Phelps Dodge if I were picking one copper stock," he said.


.I 10802
.C
acq
.W
KOHLBERG KRAVIS HAS 96 PCT OWENS-ILLINOIS <OI>.
    NEW YORK, March 17 - OII Holdings Corp, a company formed by
Kohlberg Kravis Roberts and Co, said it received and purchased
about 58.3 mln shares or 96 pct of Owens-Illinois Inc common
stock and 50,275 of 4.75 dlr cumulative convertible preference
shares of Owens, or about 83 pct.
    The company said its tender offer for all common and
preference shares expired last night. It said Owens-Illinois
will be merged into a subsidiary of OII Holdings on March 24.
Common shares not bought in the offer will be converted into
the right to receive 60.50 dlrs per share in cash, the tender
price.  The preference stock has been called.


.I 10807
.C
earn
.W
MACGREGOR SPORTING GOODS INC <MGS>2ND QTR JAN 31.
    EAST RUTHERFORD, N.J., March 17 -
    Shr one cent vs nine cts
    Net 51,057 vs 554,878
    Sales 24.5 mln vs 21.3 mln
    First half
    Shr 15 cts vs five cts
    Net 1,026,479 vs 313,676
    Sales 48.4 mln vs 37.4 mln
    NOTE: Net includes gains of 28,000 dlrs, or one cent a
share, vs 61,000 dlrs, or seven cts a share, in quarter and
453,000 dlrs, or seven cts a share, vs 61,000 dlrs, or one cent
a share, in half from tax loss carryforward


.I 10808
.C
trade
.W
EC WARNS U.S. AND JAPAN ON TRADE TENSIONS.
    BRUSSELS, March 17 - The European Community (EC) yesterday
warned Japan and the United States, its main trading partners,
that friction over trade issues is affecting the EC's relations
with both countries.
    EC foreign ministers issued a statement deploring Japan's
continued trade imbalance and appealed for the country to make
a greater effort to open up its markets. They also said they
were disturbed by a draft bill before the U.S. Congress that
would impose permanent quotas on textile imports and were
prepared to react. The U.S. Administration has already
distanced itself from the bill.
    EC External Trade Commissioner Willy De Clercq has written
to his U.S. Counterpart, Trade Representative Clayton Yeutter,
outlining the EC's concerns.
    The statement said ministers were very disturbed by U.S.
Moves towards protectionism. "The adoption of such measures
would not fail to have a negative effect on the process of
multilateral negotiations just started, as well as on bilateral
relations," it said.
    Any unilateral U.S. Moves would leave the EC no option but
to react according to the laws of the General Agreement on
Tariffs and Trade, it said.
    In a separate statement on Japan, the EC ministers said
they "deplore the continued aggravation of the imbalance in
trade (and) expect Japan to open up its market more."
    The statement said the EC would continue to insist that
Japan boost imports and stimulate domestic demand.
    Ministers also called on the EC Commission to prepare a
report on U.S.-Japanese trade for July this year to enable them
to take appropriate action where necessary.
    One diplomat said the call for a report showed ministers
were determined not to let the Japanese question drop. "It will
be back on the table again and again," the diplomat said.
    De Clercq, talking to journalists during the meeting, said,
"There is a certain nervousness, a growing impatience within the
Community concerning trade relations with Japan."
    But diplomats said the EC is keen to negotiate with Tokyo
to solve the problem rather than embark on a costly and
damaging trade war, and the ministers called for more
cooperation with Japan in industry and research.


.I 10809
.C
livestock;carcass;l-cattle;
.W
RENEWED BULL SPREADING LIKELY ON CATTLE REPORT.
    CHICAGO, March 17 - Livestock analysts expect renewed bull
spreading in live cattle futures following yesterday's USDA
7-state cattle on feed report.
    The USDA reported high placements in February, which may
weigh on back months of cattle futures. Meanwhile, continued
strong marketings during the month will support the April
contract.
    Contracts for June delivery forward could open 25 to 50
cents lower while April will likely open about steady, analysts
said.
    Cheap corn is still the main incentive for putting cattle
on feed, according to Smith Barney livestock analyst Tom
O'Hare. "They have no place to send the grain," he said.
    Strong daily fundamentals may add to nearby support while
the current discount of deferred months to the cash market may
offset much of the effect of the report, analysts said.
    "The cash market is strong and may overshadow the report,"
said Robin Fuller, analyst for Agri Analysis. She added that
even though placements came in above the average trade guess,
many traders had expected high placements.
    Placements are not that negative, especially since the
technical correction in June and August live cattle futures
since last week, GH Miller analyst Jerry Gidel said.
    He said the current marketing posture will provide added
support to the nearby month. Feedlot marketings have been
running at a heavier than expected pace.
    Chuck Levitt, analyst for Shearson Lehman said that with
the number of cattle on feed down five pct at the beginning of
the year, a three pct decline in marketings was expected. But
the report for January showed marketings at 101 pct of a year
ago and in February marketings were at 100 pct, Levitt noted.
    "So far we haven't seen any decline in marketings. They
(feedlot operators) are marketing more cattle than they had
intended for the first quarter, which is a bullish
development," Levitt said.
    Gidel also noted that marketings for the early part of
March are running ahead of a year ago. Feedlots are not falling
behind and are holding that 100 pct marketing pace.


.I 10811
.C
earn
.W
MICROBILT CORP <BILT> 4TH QTR JAN 31 NET.
    ATLANTA, March 17 -
    Shr 15 cts vs 14 cts
    Net 614,000 vs 449,000
    Revs 4,186,000 vs 4,124,000
    Avg shrs 4,131,000 vs 3,321,000
    Year
    Shr 47 cts vs 42 cts
    Net 1,768,000 vs 1,394,000
    Revs 15.0 mln vs 12.5 mln
    Avg shrs 3,799,000 vs 3,324,000


.I 10812
.C
acq
.W
SHAMROCK HOLDINGS UNIT AQUIRES SOFTWARE COMPANY.
    BURBANK, Calif., March 16 - <Shamrock Holdings Inc> said
its subsidiary, Shamrock Holdings of California, acquired
controlling interest in <DBMS Inc> through the purchase of
575,000 shares of its preferred stock.
    The company said the stock was purchased for an undisclosed
amount from an unnamed group of investors.
    Shamrock said Raymond Nawara, a former executive vice
president of DBMS, a privately-held software company, also
granted it options and voting rights on a major portion of his
shares of common stock.
   
    The combination of preferred and common stock holdings
permit Shamrock and Nawara to exercise voting control over
approximately 53 pct of the shares of the company.
    Shamrock also said Nawara has been elected president of
DBMS and one of its directors.


.I 10813
.C
acq
.W
CREDIT AGRICOLE REPLACES BNP IN HACHETTE TV BID.
    PARIS, March 17 - French state agricultural bank <Caisse
Nationale du Credit Agricole> has joined the group led by
publishing house <Hachette> which is bidding for control of the
state television station TF1, replacing <Banque Nationale de
Paris> which has withdrawn, Hachette said in a statement.
    Credit Agricole's stake in the consortium will be 3.5 pct.
    Last week the broadcasting supervisory board asked Hachette
to remove BNP from the consortium because the bank had acted as
adviser to the government for the imminent privatisation of
TF1.


.I 10814
.C
earn
.W
PAYLESS CASHWAYS INC <PCI> 1ST QTR FEB 28 NET.
    KANSAS CITY, MO., March 17 -
    Shr 10 cts vs seven cts
    Net 3,501,000 vs 2,420,000
    Sales 332.7 mln vs 274.9 mln
    Qtly div four cts vs four cts prior
    Pay April Six
    Record March Six


.I 10815
.C
acq
.W
FRANCE APPROVES WATERMAN ACQUISITION BY GILLETTE.
    PARIS, March 17 - Gillette Co <GS> exercised an option to
take a 51.2 pct stake in the French pen firm Waterman which it
had previously been authorised to do by the French government,
the French stockbrokers' association (CSAC) said.
    Gillette has given an undertaking to intervene on the
Bourse until April 7 to prevent Waterman shares from falling
below 650 francs, it added.
    This compares with yesterday's rate of 625 francs.
    Under the agreement concluded last November between
Waterman owners Francine and Grace Le Foyer-Gomez and Alice
Lundgren and the Gillette group, Gillette agreed to acquire
51.2 pct of the capital of Waterman at 700 francs a share.
    Gillette is buying a total 180,000 shares, valuing the deal
at 126 mln francs.


.I 10818
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN.
    LONDON, March 17 - The Bank of England said it had revised
its forecast of the shortage in the money market today down to
400 mln stg from 450 mln stg.


.I 10819
.C
earn
.W
NOEL INDUSTRIES INC <NOL> 1ST QTR JAN 31 LOSS.
    NEW YORK, March 17 -
    Shr loss 26 cts vs loss 12 cts
    Net loss 289,649 vs loss 138,372
    Revs 5,944,286 vs 5,902,074


.I 10821
.C
trade
.W
JAPAN ALERTS GATT TO SOUTH KOREA IMPORT PLAN.
    TOKYO, March 17 - Japan told the General Agreement on
Tariffs and Trade that South Korea's five-year import
diversification plan violated the spirit of the world trade
governing body, a Foreign Ministry spokesman said.
    The notification came in Japan's answer to a recent GATT
questionnaire on unfair trade practices, the spokesman said.
    In the five-year plan, which starts this year, South Korea
aims to reduce its dependency on Japan as a source of imported
goods and to increase imports from the U.S. And Europe.
    Japan's move came after several unsuccessful bilateral
negotiations on the plan, the spokesman said. "The notification
does not represent anything resembling a formal complaint, nor
is it intended to pressure South Korea. It is a routine
procedure followed by all other GATT member states."


.I 10822
.C
money-fx
.W
U.K. MONEY MARKET RECEIVES 16 MLN STG ASSISTANCE.
    LONDON, March 17 - The Bank of England said it had provided
the money market with 16 mln stg help in the afternoon session.
    The Bank did not operate in the market in the morning and
earlier revised its estimate of the shortage in the system
today down to 400 mln stg from 450 mln.
    The central bank purchased bills outright in band one at
10-3/8 pct comprising two mln stg of local authority bills and
14 mln stg of bank bills.


.I 10823
.C
acq
.W
ATICO FINANCIAL <ATFC> TO MAKE ACQUISITION.
    MIAMI, March 17 - Atico Financial Corp said it has executed
a definitive agreement to acquire 93.5 pct of Intercontinental
Bank of Dade County, Fla., from Intercontinental Bank Holding
Co for an undisclosed amount of cash and common stock.
    It said closing is subject to regulatory approval.
    Atico said in connection with the acquisition it will apply
to become a registered bank holding company and convert its 99
npct owned Atico Savings Bank subsidiary to a state-chartered
commercial bank.
    Intercontinental had year-end assets of about 487 mln dlrs.
    Atico had year-end assets of about 534 mln dlrs.


.I 10824
.C
earn
.W
CLOTHESTIME INC <CTME> 4TH QTR NET.
    ANAHEIM, Calif., March 17 -
    Shr 12 cts vs 10 cts
    Net 1,683,000 vs 1,407,000
    Revs 42.2 mln vs 28.8 mln
    12 mths
    Shr 83 cts vs 70 cts
    Net 11.9 mln vs 10.0 mln
    Revs 160.3 mln vs 126.5 mln
    NOTE: prior qtr and yr ended Jan 26.


.I 10825
.C
earn
.W
CHARTER-CRELLIN INC <CRTR> YEAR NET.
    NEW YORK, March 17 -
    Shr 1.40 dlrs vs 1.38 dlrs
    Net 1,928,800 vs 1,485,600
    Sales 35.2 mln vs 33.5 mln
    Avg shrs 1,350,800 vs one mln


.I 10826
.C
earn
.W
<SENSORMATIC CANADA LTD> YEAR NET.
    Montreal, March 17 -
    Shr 26 cts vs 18 cts
    Net 879,000 vs 615,000
    Revs 6,394,000 vs 5,561,000


.I 10827
.C
earn
.W
DIME SAVINGS BANK OF WALLINGFORD <DIBK> PAYOUT.
    WALLINGFORD, Conn., March 17 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 30
    Record April Three


.I 10828
.C
acq
.W
******BAKER INTERNATIONAL TO SELL ELECTRIC SUBMERSIBLE OILWELL PUMP UNIT.
Blah blah blah.

.I 10832
.C
acq
.W
BAKER <BKO> TO SELL OILWELL PUMP UNIT.
    HOUSTON, March 17 - Baker International Corp said it has
signed a definitive agreement to sell the assets and business
of the electric submersible oilwell pump product line in the
continental U.S. of its Baker Oil Tools Inc subsidiary to Trico
Industries Inc <TRO> for an undisclosed amount of cash and
other consideration.
    The company said the transaction is subject to Hughes Tool
Co <HT> and Baker shareholder approval of the Baker/Hughes
merger. The U.S. Justice Department has announced that it will
require divestiture of the product line for approval of the
merger.
    Baker said the transaction is subject to approval by the
Justice Department and the boards of Baker, Hughes and Trico.


.I 10835
.C
earn
.W
<CANADIAN FOREMOST LTD> YEAR NET.
    CALGARY, Alberta, March 17 -
    Shr 38 cts vs 92 cts
    Net 1,042,000 vs 2,510,000
    Revs 20.6 mln vs 29.6 mln


.I 10838
.C
earn
.W
IMMUNOGENETICS INC <IGEN> YEAR NET.
    VINELAND, N.J., March 17 -
    Oper shr profit eight cts vs loss eight cts
    Oper net profit 604,996 vs loss 615,345
    Sales 18.4 mln vs 17.8 mln
    NOTE: Net excludes losses from discontinued operations of
156,098 dlrs vs 732,924 dlrs.
    1986 net excludes tax credits of 271,538 dlrs.
    1985 net includes gain 480,0009 dlrs from reversl of
recapture taxes.


.I 10839
.C
earn
.W
<SCURRY-RAINBOW OIL LTD> 1ST QTR DEC 31 NET.
    Calgary, Alberta, March 16 -
    Shr 31 cts vs 53 cts
    Net 4.2 mln vs 7.1 mln
    Revs 16.1 mln vs 27.2 mln


.I 10843
.C
earn
.W
MCRAE INDUSTRIES INC <MRI.B> 2ND QTR JAN 31 NET.
    MOUNT GILEAD, N.C., March 17 -
    Shr 19 cts vs three cts
    Net 515,000 vs 87,000
    Revs 6,830,000 vs 4,107,000
    Six mths
    Shr 36 cts vs 12 cts
    Net 955,000 vs 327,000
    Revs 14.2 mln vs 9,755,000


.I 10844
.C
earn
.W
<FRONTIER TEXAS CORP> 2ND QTR NOV 30 NET.
    DALLAS, March 17 -
    Oper shr profit one ct vs loss four cts
    Oper net profit 104,386 vs loss 196,265
    Revs 8,174,652 vs 2,309,979
    Avg shrs 6,285,714 vs 5,500,000
    1st half
    Oper shr profit nil vs loss eight cts
    Oper net profit 26,541 vs loss 419,758
    Revs 12.0 mln vs 5,088,134
    Avg shrs 5,836,735 vs 5,500,000
    NOTE: Current year net both periods excludes tax credit of
107,370 dlrs.


.I 10845
.C
gold
.W
<VICEROY RESOURCE CORP> DETAILS GOLD ASSAYS.
    Vancouver, British Columbia, March 17 - Viceroy Resource
Corp said recent drilling on the Lesley Ann deposit extended
the high-grade mineralization over a width of 600 feet.
    Assays ranged from 0.35 ounces of gold per ton over a
150-foot interval at a depth of 350 to 500 feet to 1.1 ounces
of gold per ton over a 65-foot interval at a depth of 200 to
410 feet.
    


.I 10846
.C
grain;corn;
.W
TAIWAN TO TENDER FOR 450,000 TONNES U.S. CORN.
    CHICAGO, March 17 - Taiwan is scheduled to tender tonight
for 450,000 to 475,000 tonnes U.S. corn, export sources said.
    The tender calls for 11 cargoes for delivery from April
through October with early shipments FOB or Pacific Northwest,
they said.


.I 10847
.C
acq
.W
CLABIR <CLG> UNIT AGRES TO BUY POPSICLE CANADA.
    GREENWICH, Conn., March 17 - Clabir Corp said its 86 pct
owned affiliate, Ambrit Inc <ABI>, has agreed to acquire the
Popsicle Industries division of <Sara Lee Corp of Canada Ltd>
for about 37 mln Canadian dlrs in cash.
    Clabir said the purchase from the Sara Lee Corp <SLE>
subsidiary is worht about 28 mln U.S. dlrs.
    The agreement is subject to Canadian regulatory approval.
    Popsicle Canada, through its 19 licensees, is the largest
maker and distributor of frozen novelty products in Canada,
Clabir added.


.I 10848
.C
earn
.W
ST. JUDE MEDICAL <STJM> VOTES DIVIDEND RIGHTS.
    ST. PAUL, March 17 - St. Jude Medical Inc said its board
declared a special dividend of one right for each outstanding
share held of the company's common stock, payable to holders of
record April Six.
    It said each right entitles the holder to buy one-tenth of
a share of preferred stock of St. Jude at an exercise price of
100 dlrs.
    St. Jude said the rights may be exercised only after 10
days following the acquisition of, or commencement of a tender
offer for, at least 20 pct of the company's common stock.
    The company added that it has no reason to believe St. Jude
Medical is a takeover target.


.I 10850
.C
acq
.W
ADAMS-RUSSELL ELECTRONICS <AARE> IN PURCHASE.
    WALTHAM, Mass., March 17 - Adams-Russell Electronics Co Inc
said it has acquired Hermetronics PLC, a maker of hermetic
integrated circuit packages, for about 600,000 dlrs. 
    The company said HErmetronics is expected to have sales of
over 800,000 dlrs for the year ending this month.


.I 10851
.C
earn
.W
MESA LIMITED PARTNERSHIP <MLP> SETS PAYOUT.
    AMARILLO, Texas, March 17 -
    Qtly div 50 cts vs 50 cts prior
    Pay May 15
    Record April Seven
    NOTE: Partnership said holders of common and preference
units for all of 1987 are expected to have no net taxable
income.   


.I 10852
.C
bop;trade;
.W
******U.S. CURRENT ACCOUNT DEFICIT RECORD 36.84 BILLION DLRS IN 4TH QTR 1986.
Blah blah blah.

.I 10854
.C
bop;trade;
.W
U.S. CURRENT ACCOUNT DEFICIT 36.84 BILLION DLRS.
    WASHINGTON, March 17 - The U.S. current account deficit
widened to a record 36.84 billion dlrs on a balance of payments
basis in the October-December fourth quarter of 1986 from a
revised 35.29 billion dlrs in the third quarter, the Commerce
Department said.
    Previously, the department said the third-quarter deficit
was 36.28 billion dlrs.
    For the full year 1986, the current account, a broad
measure of trade performance, was in deficit a record 140.57
billion dlrs after a 117.68 billion dlr deficit in 1985.
    The department said an increase in the merchandise trade
deficit during the fourth quarter to 38.4 billion dlrs from
37.1 billion dlrs in the third quarter was the main reason for
the worsening deficit.
    Net service receipts declined to 5.5 billion dlrs in the
final quarter from six billion dlrs in the third quarter.
    The current account includes trade in merchandise and
services as well as U.S. financial transactions with the rest
of the world.
    The department said the merchandise trade deficit for all
of 1986 grew to 147.7 billion from 124.4 billion dlrs in 1985.
    Net service receipts were 22.3 billion dlrs in 1986,
compared with 21.7 billion dlrs in 1985, the department said.
    Net unilateral transfers during the fourth quarter last
year, covering foreign aid and government pensions, were down
to 3.9 billion dlrs from 4.2 billion dlrs in the third quarter
because of fewer U.S. government grants to Mideast countries.
    Liabilities to foreigners reported by U.S. banks rose 35.3
billion dlrs between October and December after increasing 30.1
billion dlrs in the third quarter.
    For the full year, these liabilities grew 77.4 billion dlrs
after rising by 40.4 billion dlrs in 1985.
    The department said inflows were boosted in the fourth
quarter by international activities of Japanese banks and
strong demand within the United States to finance acquisitions.
    Net foreign sales of U.S. Treasury securities by foreigners
were 2.7 billion dlrs in the quarter after purchases of 500 mln
dlrs in the third quarter.
    Net foreign purchases of securities other than U.S.
Treasury securities in the fourth quarter were 11.8 billion
dlrs, compared with 17.2 billion dlrs in the third quarter.
    For all 1986, foreign purchases of securities excluding
U.S. Treasury securities were a record 70.7 billion dlrs,
surpassing the previous record 50.9 billion dlr total in 1985.
   Claims on foreigners reported by U.S. banks in the fourth
quarter rose 29.9 billion dlrs after a 19.3 billion dlr
third-quarter increase.
    U.S. sales of foreign securities rose to 2.7 billion dlrs
from 300 mln dlrs in the third quarter because of a sharp
selloff of foreign stocks and bonds, the department said.
    Outflows for U.S. direct investment abroad fell to 5.7
billion dlrs from eight billion dlrs in the third quarter.
    Foreign direct investment in the United States increased
14.4 billion dlrs in the fourth quarter, compared with 5.6
billion dlrs in the previous quarter, because of stepped-up
acquisitions, the department said.
    Foreign official assets in the United States increased 800
mln dlrs between October and December after rising 15.4 billion
dlrs in the third quarter.
    For the full year 1986, foreign official assets grew 33.4
billion dlrs after a 1985 decrease of 1.9 billion dlrs as
foreign monetary authorities intervened heavily in exchange
markets late in the year as the dollar fell, commerce said.


.I 10858
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 120 MLN STG LATE HELP.
    LONDON, March 17 - The Bank of England said it provided the
money market with late assistance of around 120 mln stg.
    This brings the bank's total help today to some 136 mln stg
and compares with its forecast of a 400 mln stg shortage in the
system.


.I 10859
.C
acq
.W
MEMORY PROTECTION <MPDI> SEES BOGEN CLOSING.
    NEW YORK, March 17 - Memory Protection Devices Inc said it
expects to close the previously announced acquisition of the
assets and liabilities of Bogen, a division of <Lear Siegler
Inc>, on April one.
    Memory Protection Devices said it received a senior loan
commitment letter as well as the requisite waiver under the New
Jersey Environmental Control Reclamation Act, both of which are
necessary to complete the acquisition. It declined to provide
further details.


.I 10860
.C
acq
.W
CANADIAN FOREMOST CONTINUES MACEDON SALE TALKS.
    CALGARY, Alberta, March 17 - <Canadian Foremost Ltd>,
earlier reporting lower 1986 net profit, said negotiations are
continuing concerning the previously announced sale of the
company's 49 pct interest in <Macedon Resources Ltd>.
    If concluded, the sale would be refelected in the company's
1987 results, Foremost said without elaborating.
    It also said lower revenues from the last half of 1986 are
expected to continue during 1987, but a strong cash and working
capital position will enable Foremost to go on developing
traditional and new markets. It earlier said 1986 earnings fell
to 1,042,000 dlrs from year-ago 2,510,000 dlrs.


.I 10862
.C
acq
.W
TEXAS INTERNATIONAL <TEI> COMPLETES RESERVE SALE.
    OKLAHOMA CITY, March 17 - Texas International Co said it
has completed the previously-announced 120 mln dlr sale of its
domestic oil and natural gas reserves to <Total Compagnie
Francaise des Petroles>.
    It said on closing it used part of the proceeds to retire
all 100 mln dlrs of its U.S. bank and U.S. senior debt and the
rest will be used for general corporate purposes.


.I 10863
.C
earn
.W
TRANS WORLD MUSIC CORP <TWMC> 4TH QTR JAN 31 NET.
    ALBANY, N.Y., March 17 -
    Shr 70 cts vs 47 cts
    Net 4,185,000 vs 2,433,000
    Sales 52.9 mln vs 35.7 mln
    Avg shrs 6,000,000 vs 5,200,000
    Year
    Shr 1.20 dlrs vs 71 cts
    Net 6,759,000 vs 3,717,000
    Sales 130.4 mln vs 85.3 mln
    Avg shrs 5,622,000 vs 5,200,000


.I 10864
.C
earn
.W
GRUEN MARKETING <GMC> SEES YEAR NET OFF.
    SECAUCUS, N.J., March 17 - Gruen Marketing Corp said it
expects to report earnings for the year ended January 31 of 60
to 65 cts per share on about 7,309,000 average shares, down
from 78 cts on 6,545,000 shares a year before.
    It said sales fell about 10 pct from the year-earlier 104.9
mln dlrs.


.I 10867
.C
trade
.W
DUTCH OFFICIAL WARNS OF MORE TRADE CONFLICTS.
    THE HAGUE, March 17 - Already strained relations between
the U.S. And the European Community (EC) are likely to get
worse before they get better, director general of the Dutch
Economics Ministry's foreign affairs division Frans Engering
said.
    Speaking at an American Chamber of Commerce lunch in The
Hague, Engering noted the developing history of crises over
steel, citrus and pasta, and warned of more to come.
    "I consider the strident tone of US declarations on Airbus
ill-advised, and the EC fats and oils tax proposal a dangerous
provocation," he said. "I feel that we shall probably have to
deal with quite a few more crises in the foreseeable future."
    Not only is the US Congress clearly very determined to get
the American balance of payments into better shape, but the
risks of brinkmanship are all the greater because the EC has
its own constraints in meeting outside pressure, Engering
noted.
    "If we ask ourselves whether it is perhaps inevitable that
we keep pushing each other to the brink of actual trade war,
then I think the answer is probably yes," he said.
    In order to reduce these tensions, decision-making in the
EC must become less self-centred, and the US Administration
will have to exercise the authority to convince Congress and
pressure groups of the need for accommodation, he added.


.I 10868
.C
acq
.W
QINTEX AGAIN EXTENDS PRINCEVILLE <PVDC> OFFER.
    NEW YORK, March 17 - <Qintex America Ltd> said its offer
for 3.3 mln Princeville Development Corp shares has been
extended to March 19 from March 18.
    As of yesterday, Qintex said, 7,060,197 Princeville shares
had been tendered in response to the offer and not withdrawn,
down from over 7.2 mln on March 10.
    Qintex said it is extending the offer to allow Princeville
shareholders to assess the sale announced last week of
Princeville Airways Inc to Aloha Inc <ALO>, adding a supplement
to the Quintex offer further detailing the agreement with Aloha
will be distributed later today.


.I 10870
.C
rubber
.W
NEGOTIATORS DRAFT DETAILS OF NEXT RUBBER PACT.
    GENEVA, March 17 - Rubber producers and consumers, who
agreed last week on the central elements of a new international
natural rubber pact, have started work on the legal drafting of
a future accord, delegates said.
    Compromise on issues blocking an agreement was reached at a
United Nations conference on an accord to replace the current
pact, which expires in October.
    The new International Natural Rubber Agreement (INRA) is
expected to be formally adopted on Friday.


.I 10871
.C
gold
.W
VICEROY RESOURCE CORP DETAILS GOLD ASSAYS.
    Vancouver, British Columbia, March 17 - Viceroy Resource
Corp said recent drilling on the Lesley Ann deposit extended
the high-grade mineralization over a width of 600 feet.
    Assays ranged from about 0.35 ounces of gold per short ton
over a 150-foot interval at a depth of 350 to 500 feet to about
1.1 ounces of gold per ton over a 65-foot interval at a depth
of 200 to 410 feet.


.I 10873
.C
earn
.W
FIRST VALLEY CORP <FIVC> REGULAR DIVIDEND.
    BETHLEHEM, Pa., March 17 -
    Qtly div 21 cts
    Payable April 15
    Record March 31


.I 10877
.C
trade
.W
U.S. TREASURY ANNOUNCES OECD TIED-AID PACT.
    WASHINGTON, March 17 - U.S. Treasury Secretary James Baker
said an agreement has been reached by members of the
Organization for Economic Cooperation and Development (OECD) to
control the unfair trade practice of using tied aid to promote
trade.
    He said in a statement the agreement culminates the Reagan
administration's effot to negotiate a virtual end to export
credit subsidies.
    The practice of other governments using tied aid or mixed
credits to promote exports has cost the United States lost jobs
and lost exports, the Treasury said.
    The agreement to be implemented in two stages by July, 1988
would ban tied aid credit among industrialized countries and
place limits on permitted aid by developing countries.
    It would also reduce export credits that do not involve aid
and reduce credit subsidies permitted for relatively poor
countries, the Treasury said.
    Baker said the agreement imposes particular sacrifices on
Japan and praised Japan's willingness to accept the pact as a
demonstration of the Japanese government's willingness to take
concrete steps to resolve important trade issues.


.I 10878
.C
earn
.W
GULF RESOURCES <GRE> SEES 1ST QTR PRETAX PROFIT.
    BOSTON, March 17 - Gulf Resources and Chemical Corp said
the sale of its stake in <Imperial Continental Gas Association>
will result in a pre-tax profit of about 44.1 mln dlrs or 4.69
dlrs per share, fully duliuted, in the first quarter of 1987.
    Gulf said it sold its remaining stake in Imperial of 
6,631,222 shares and 100,000 units of loan stock for 74.8 mln
dlrs, based on an exchange rate of one pound sterling at 1.58
dlr. As previously reported, it sold 9,534,633 of its Imperial
shares on March nine.
    Gulf said the sale of the Imperial shares were accepted as
part of a recent tender offer made by <Groupe Bruxelles Lambert
S.A.> and <Tractebel S.A.>.
    Under the terms of the offer, Gulf said it is entitled to
receive a supplementary payment if a general offer to acquire
Imperial Continental or its Calor Group or Contibel Holdings
becomes wholly unconditional before Jan 1, 1988 at a price
above the tender off of 710 pence per share.
   


.I 10880
.C
earn
.W
STERLING INC <STRL> 4TH QTR JAN 31 NET.
    AKRON, Ohio, March 17 -
    Shr 1.27 dlrs vs not given
    Net 5,097,000 vs 3,164,000
    Sales 48.1 mln vs 31.7 mln
    Year
    Shr 1.42 dlrs vs not given
    Net 5,194,000 vs 3,457,000
    Sales 100.4 mln vs 70.1 mln
    NOTE: Company went public in May 1986.


.I 10881
.C
earn
.W
AUTOMATIX INC <AITX> 4TH QTR LOSS.
    BILLERICA, Mass., March 17 -
    Shr loss 20 cts vs loss 12 cts
    Net loss 2,195,000 vs loss 1,402,000
    Revs 3,600,000 vs 5,777,000
    Year
    Shr loss 71 cts vs loss 51 cts
    Net loss 7,851,000 vs loss 5,594,000
    Revs 16.7 mln vs 24.8 mln


.I 10882
.C
earn
.W
IONICS INC <ION> 4TH QTR NET.
    WATERTOWN, Mass., March 17 -
    Shr 11 cts vs 24 cts
    Net 419,000 vs 938,000
    Revs 16.2 mln vs 16.9 mln
    Year
    Shr 25 cts vs 95 cts
    Net 952,000 vs 3,001,000
    Revs 64.6 mln vs 68.8 mln
    Backlog 30.3 mln vs 31.9 mln
    NOTE: 1986 net includes nonrecurring gain 383,000 dlrs in
quarter and charge 175,000 dlrs in year.


.I 10885
.C
grain
.W
SOVIETS SAID TO SEE NEW FLOOR FOR GRAIN OUTPUT.
    WASHINGTON, March 17 - The intensive technology concept for
grain production has put a new floor under USSR grain
production, the U.S. Agriculture Department's officer in Moscow
said in a field report.
    The report, quoting a broadcast on Radio Moscow, said that
due to intensive technology grain production in a "bad year" will
not fall below 200 mln tonnes, and in a "good year" grain
production could reach 250 mln tonnes.
    The U.S. Agriculture Department currently forecasts this
year's USSR crop at 210.1 mln tonnes, and if realized this
would be the third year since 1975 that the Soviet Union's
grain harvest has exceeded 200.0 mln tonnes.
    The largest crop since 1975 was 237.4 mln tonnes harvested
in 1978, according to USDA data.


.I 10886
.C
trade
.W
OECD AGREES EXPORT CREDIT REFORMS.
    PARIS, March 17 - The western industrialised nations have
agreed reforms in rules by which they provide credit for
exports to developing countries, the Organisation for Economic
Cooperation and Development said.
    The reforms tighten the rules for the use of foreign aid to
subsidise export credits in so-called "mixed credits," the OECD
said.
    The agreement, to be implemented in two stages in July this
year and July 1988, means the minimum aid component in mixed
credits will be raised to 35 pct from 25 pct, and to 50 pct for
credits covering exports to the world's least developed
nations.
    Additionally, a new formula will be used for calculating
the aid element in mixed credits, to take account of different
interest rates in the exporting countries, the 24-nation OECD,
which hosted the reform negotiations, said.
    Minimum interest rates for officially subsidised trade
loans have also been revised with the aim of cutting the
subsidies, and ending them completely on loans to relatively
rich developing countries by July next year.
    The reforms follow several years of pressure by the U.S. To
stop competitors, notably France and Japan, using foreign aid
to subsidise exports, putting U.S. Firms at a disadvantage.
    OECD officials said the agreement was based on a
provisional accord reached in January subject to ratification
by member governments. Some governments, including Austria, had
linked their final approval to other trade credit issues which
would be discussed at a meeting here in mid-April, they added.
    By raising the minimum amount of aid required in mixed
credits the agreement aims to make such hidden subsidies too
costly for frequent use.
    "A major loophole in the General Agreement on Tariffs and
Trade has been closed today," a senior U.S. Official here
commented.


.I 10887
.C
acq
.W
TM COMMUNICATIONS <TMCI> COMPLETES PURCHASE.
    DALLAS, March 17 - TM Communications Inc said it has
completed the acquisition of radio station KNSS-FM of Reno,
Nev., for about 2,500,000 dlrs in cash.


.I 10888
.C
acq
.W
PEOPLES HERITAGE <PHBK> TO MAKE ACQUISITION.
    PORTLAND, Maine, March 17 - Peoples Heritage Bank said it
has agreed to purchase Northeast Leasing Co Inc, a Portland,
Maine lessor of office equipment, for about 43,000 common
shares.
    It said Norhteast had year-end receivables of 2,700,000
dlrs.


.I 10889
.C
earn
.W
CODENOLL TECHNOLOGY CORP <CODN> 4TH QTR LOSS.
    YONKERS, N.Y., March 17 -
    Shr loss 12 cts vs loss 17 cts
    Net loss 484,556 vs loss 620,607
    Sales 2,167,631 vs 1,062,837
    Avg shrs 3,985,924 vs 3,935,969
    Year
    Shr loss 62 cts vs loss 52 cts
    Net loss 2,468,605 vs loss 1,788,406
    Sales 6,603,285 vs 4,650,585
    Avg shrs 3,983,692 vs 3,446,348


.I 10890
.C
acq
.W
OWENS-CORNING <OCF> COMPLETES SALE OF PLANTS.
    TOLEDO, Ohio, March 17 - Owens-Corning Fiberglas Corp said
it has completed the previously-announced sale of its three
foam products plants to Atlas Roofing Corp for undisclosed
terms.
    The sale is part of its restructuring, the company said.


.I 10893
.C
gnp
.W
****** U.K. Chancellor forecast in budget speech GDP growth of 3.0 pct in 1987.
Blah blah blah.

.I 10894
.C
bop;trade;
.W
******LAWSON FORECASTS 2.5 BILLION STG U.K. CURRENT ACCOUNT DEFICIT IN 1987.
Blah blah blah.

.I 10895
.C
earn
.W
******CAMPBELL RESOURCES INC 2ND QTR SHR PROFIT THREE CTS VS LOSS 10 CTS.
Blah blah blah.

.I 10897
.C
earn
.W
GENETIC LABORATORIES INC <GENL> 2ND QTR LOSS.
    ST. PAUL, March 17 - Period ended Jan 31
    Net loss 89,255 vs loss 277,536
    Sales 913,136 vs 854,194
    Six mths
    Net profit 481,372 vs loss 555,722
    Sales 1,845,532 vs 1,754,076


.I 10898
.C
acq
.W
ROYAL RESOURCES <RRCO> MAKES ACQUISITION.
    DENVER, March 17 - Royal Resources Corp said it has
exercised its optioon to purchase Montagu Mining Investments
Inc from <Samuel Montagu Ltd> of London for 3,600,000 dlrs in
cash and 200,000 common shares.
    The company said Montagu's main asset is a 10 pct interest
in the Hog Ranch Joint Venture, which operates the open cut
heap leach Hog Ranch gold mine in Washoe County, Nev.  The mine
now produces gold at over 50,000 ounces a year.
    It said after nine months following closing, Montagu may
require Royal to register the 200,000 shares for sale.         
    Royal said from six months after closing until one year
after, Montagu also has the right to require Royal to
repurchase any or all of the 200,000 shares at 4.50 dlrs each.


.I 10903
.C
earn
.W
CAMPBELL RESOURCES INC <CCH> 2ND QTR DEC 31 NET.
    TORONTO, March 17 -
    Shr profit three cts vs loss 10 cts
    Net profit 765,000 vs loss 2,600,000
    Revs 9,259,000 vs 14,479,000
    SIX MTHS
    Shr profit three cts vs loss 11 cts
    Net profit 875,000 vs loss 2,303,000
    Revs 17.7 mln vs 29.2 mln
    Note: Campbell changing its yr-end to Dec 31 from June 30.


.I 10905
.C
earn
.W
AMERTEK INC <ATEKF> YEAR NET.
    WOODSTOCK, Ontario, March 17 -
    Oper shr 15 cts vs eight cts
    Oper net 517,333 vs 276,240
    Revs 22.4 mln vs 14.0 mln
    Note: 1986 shr and net exclude extraordinary gain of
1,333,760 dlrs or 40 cts share. 1985 shr and net exclude
extraordinary gain of 294,859 dlrs or 10 cts share


.I 10906
.C
earn
.W
SYSTEMATICS INC <SYST> 3RD QTR FEB 28 NET.
    LITTLE ROCK, Ark., March 17 -
    Shr 33 cts vs 27 cts
    Net 3,588,000 vs 2,981,000
    Revs 37.8 mln vs 31.6 mln
    Nine mths
    Shr 72 cts vs 76 cts
    Net 7,843,000 vs 8,344,000
    Revs 103.3 mln vs 90.8 mln


.I 10910
.C
gnp
.W
U.K. BUDGET SEES 1987 GDP GROWTH AT THREE PCT.
    LONDON, March 17 - Chancellor of the Exchequer Nigel
Lawson, presenting his budget for fiscal 1987/88 to Parliament,
said U.K. Economic growth was forecast at three pct in calendar
1987.
    He said the Treasury expected a current account balance of
payments deficit in 1987 of 2.5 billion stg, after a 1.1
billion shortfall in 1986.
    Inflation is expected to be 4.0 pct at the end of this
year, Lawson said.
    "As I forecast in the Autumn Statement, inflation may
continue to edge up for a time, perhaps exceeding 4.5 pct by
the summer, before falling back to 4.0 pct by the end of the
year," he added.
    Turning to the Public Sector Borrowing Requirement (PSBR),
Lawson said the likely outturn for fiscal 1986/87 was 4.0
billion stg, or 1.0 pct of GDP.
    The planned PSBR for 1987/88 was set at 4.0 billion stg.
    On monetary policy, Lawson confirmed the target range for
the narrow M0 measure would be two to six pct in fiscal
1987/88.
    No explicit target was set for the broad sterling M3
aggregate, he said. "But broad money will continue to be taken
into account in assessing monetary conditions, as of course
will the exchange rate," the Chancellor told Parliament.
    Lawson said the low outturn of the PSBR in 1986/87 "is
chiefly attributable to the remarkable buoyancy of non-oil tax
revenues in general, and the corporation tax paid by an
increasingly profitable business sector in particular."
    On oil prices, Lawson said he was sticking to his earlier
assumption that North Sea crude prices will average 15 dlrs per
barrel in calendar 1987.
    He said "it is clear that the increased flow of non-oil tax
revenues, coupled with the prospective further growth of the
economy in excess of the growth of public expenditure, puts the
public finances in a very strong position."
    Lawson said the Treasury would strive to keep the PSBR at
1.0 pct of GDP in future.
    "We have reached what I judge to be the (Medium Term
Financial Strategy's) appropriate destination - a PSBR of 1.0
pct of GDP. My aim will be to keep it there over the years
ahead," Lawson said.
    "Inevitably, this greatly diminishes the scope I have this
year for reducing the burden of taxation, which of course
remains a major objective of government policy."
    "But I am sure it is right to err on the side of prudence
and caution, and to build a still firmer base for the future."
    Lawson said the time had come to strike the Exchange
Control Act from the Statute book.
    On corporation tax, he said the rate will remain unchanged
at 35 pct in 1987/88. But companies' capital gains will be
charged at the "appropriate corporation tax rate."
    He said that under the new proposed system, companies
should be able to set Advanced Capital Tax (ACT) payments
against tax on capital gains.
    "Taken together, these changes should yield 60 mln stg in
1988/89," Lawson said.
    Lawson said he will propose that all companies and building
societies be treated the same way on payment of corporation
tax, "with all liable to pay corporation tax nine months after
the end of the accounting period on which the tax is due."
    "I also propose to legislate now to pave the way for a new
method of collecting corporation tax, to be known as Pay and
File."
    This would be part of a wider programme of streamlining tax
collection, and would not come into force until the early
1990s.
    Lawson said he planned two reliefs on Petroleum Revenue Tax
(PRT). As from today, companies may elect to have up to 10 pct
of the costs of developing certain new fields set against their
(PRT) liabilities in existing fields, until the income of those
new fields exceeds the costs incurred.
    Second, there will be a new relief against PRT for spending
on research into U.K. Oil extraction that is not related to any
particular field.
    On business employment, Lawson said employers will receive
tax relief for retraining workers.
    Lawson said that in future, traders registered for Value
Added Tax (VAT) would be able to choose to account for the tax
on the basis of cash paid and received.
    Small businesses may account for VAT annually instead of
quarterly. The VAT compulsory registration period was being
extended to 30 days, he added, and VAT registration thresholds
are to be raised to 21,300 stg.
    New measures are planned to combat VAT avoidance, he added.
    The capital gains tax retirement relief limit would now be
set at 125,000 stg.
    Lawson said he proposed to change the law so that companies
in multinational groups with dual residence will no longer be
able to secure tax relief twice on the same interest payment.
The change will take effect on April 1, 1987, but "genuine
trading companies" will not be affected.
    He also planned to end the present treatment of tax credit
relief for foreign withholding tax paid on interest on bank
loans, also from April 1.
    "In future, banks will be able to offset this tax credit
only against tax on the profit on the relevant loan," he said.
    The standard rate of taxation is being reduced by two
pence, to 27 pct from 29 pct.
    Lawson reiterated the government's aim of reducing basic
taxation to 25 pence in the pound, but added "given my decision
to use the greater part of the fiscal scope I now have to
reduce the PSBR, that goal cannot be achieved in this budget."
    Small companies' corporation tax is also being reduced to
27 pct, he said.
    On the Lloyd's insurance market, Lawson said he planned to
change the tax treatment of Lloyd's syndicates, bringing it
into line with that of provisions for outstanding liabilities
made by ordinary insurance companies and of comparable
provisions made by financial traders.
    The Inland Revenue would be told to consult urgently with
Lloyd's about the details of the legislation, he said.
    "The new rules will first apply to premiums payable for the
Lloyd's account which closes on December 31 this year," Lawson
said.
 MORE

.I 10911
.C
money-fx
.W
FED MAY SUPPLY RESERVES IN THE MONEY MARKETS.
    NEW YORK, March 17 - There is a slightly better than even
chance that the Federal Reserve will enter the U.S. Government
securities market to add temporary reserves, economists said.
    They said the Fed would supply the reserves indirectly via
around 1.5 billion dlrs of customer repurchase agreements.
    Federal funds, which averaged 6.25 pct yesterday, opened at
6-1/16 pct and moved in a narrow range between there and six
pct in early trading.


.I 10913
.C
housing
.W
BALDRIGE PREDICTS SOLID U.S. HOUSING GROWTH.
    WASHINGTON, March 17 - Commerce Secretary Malcolm Baldrige
predicted 1987 will be the fifth successive year for growth in
housing starts after a 2.6 pct rise overall in February starts
to a seasonally adjusted annual rate of 1.851 mln units.
    "This year should be the fifth solid year in a row for
homebuilding activity -- with single-family units stronger than
multi-family units," he said in a statement.
    Single-family starts rose last month from January levels by
5.6 pct to 1.317 mln units on a seasonally adjusted basis while
multi-family unit starts fell 4.1 pct to 534,000 units, the
department said.


.I 10916
.C
acq
.W
IRVING TRUST <V> BUYS GULF/WESTERN <GW> UNIT.
    NEW YORK, March 17 - Irving Bank Corp said it bought the
factoring division of Associates Commercial Corp, a unit of
Gulf and Western Co Inc's Associates Corp of North America.
    The terms of the previously announced deal were not
disclosed.
    It said the assets were transferred to Irving Commercial
Corp.



.I 10918
.C
earn
.W
AMRE INC <AMRE> 3RD QTR JAN 31 NET.
    DALLAS, MArch 17 -
    Shr five cts vs one ct
    Net 196,986 vs 37,966
    Revs 15.5 mln vs 8,900,000
    Nine mths
    Shr 52 cts vs 22 cts
    Net two mln vs 874,000
    Revs 53.7 mln vs 28.6 mln


.I 10919
.C
wheat;grain;
.W
KANSAS LEGISLATOR TO OFFER U.S. 0/92 BILL TODAY.
    WASHINGTON, March 17 - U.S. Rep. Dan Glickman, D-Kan.,
chairman of the House Agriculture subcommittee on wheat,
soybeans and feedgrains, said he would today introduce a bill
to apply the so-called 0/92 concept to wheat and feedgrains
producers.
    Glickman told Reuters the measure would allow 1987 winter
wheat producers and 1988 feedgrains producers the possibility
of receiving no less than 92 pct of their income support
payments regardless of how much acreage they planted.
    He also said his bill would protect program participants
from reduced income payments in the event market prices rose
above the loan rate.


.I 10923
.C
earn
.W
PORTA SYSTEMS CORP <PSI> 4TH QTR JAN 31 NET.
    SYOSSET, N.Y., March 17 -
    Shr 10 cts vs 11 cts
    Net 547,000 vs 579,000
    Sales 11.0 mln vs 11.1 mln
    Year
    Shr 46 cts vs 52 cts
    Net 2,500,000 vs 2,841,000
    Sales 40.7 mln vs 40.5 mln


.I 10926
.C
earn
.W
******FEDERATED DEPARTMENT STORES INC 4TH QTR SHR 3.64 DLRS VS 3.16 DLRS.
Blah blah blah.

.I 10927
.C
earn
.W
<WARNACO GROUP INC> EIGHT MTHS JAN THREE NET.
    NEW YORK, March 17 -
    Oper net 46.6 mln
    Revs 392 mln
    12 mths
    Oper net 65 mln vs 47.1 mln
    Revs 590 mln vs 591 mln
    NOTE: Eight months represents earnings following
acquisition in May 1986 when company went private.
    Period ending Jan. 3, 1987 excludes 42.3 mln dlrs of
interest expenses, 41.6 mln dlrs of acquisition adjusments, and
1.7 mln dlrs of income taxes.


.I 10930
.C
earn
.W
GANTOS INC <GTOS> 4TH QTR JAN 31 NET.
    GRAND RAPIDS, MICH., March 17 -
    Shr 43 cts vs 37 cts
    Net 2,276,000 vs 1,674,000
    Sales 31.9 mln vs 23.9 mln
    Avg shrs 5.3 mln vs 4.5 mln
    Year
    Shr 90 cts vs 69 cts
    Net 4,508,000 vs 3,096,000
    Sales 98.4 mln vs 75.0 mln
    Avg shrs 5.0 mln vs 4.5 mln


.I 10931
.C
earn
.W
<ATLANTIC EXPRESS INC> 1ST HALF DEC 31 NET.
    NEW YORK, March 17 -
    Shr not given
    Net 788,099
    Revs 15.5 mln
    NOTE: Company went public during 1986.


.I 10933
.C
acq
.W
SPENDTHRIFT FARMS <SFI> GETS BID FOR CONTROL.
    LEXINGTON, Ky., March 17 - Spendthrift Farm Inc said it has
received three tentative proposals to acquyire control of the
company.
    It said it is evaluating the proposals and will not comment
further unless a definitive agreement is reached.


.I 10936
.C
crude
.W
SHEARSON LEHMAN UPGRADES U.S. OIL STOCKS.
    NEW YORK, March 17 - Analyst Sanford Margoshes of Shearson
Lehman Brothers said he recommended a number of oil stocks
today now that it is apparent that OPEC has succeeded in
holding to its prescribed production quotas.
    "It is clear that OPEC, through jawboning and quota
restraint, will boost the price of oil," Margoshes said.
    Prices of oil stocks rose sharply today in response to
higher oil prices and optimism about OPEC quotas. Margoshes
said he recommends Imperial Oil <IMO.A>, up 1/2 to 49-1/8,
Standard Oil Co <SRD>, 7/8 to 62-3/4, Exxon <XON> one to
83-1/8, and Chevron <CHV> 1-1/8 to 54-7/8.
    In addition, Margoshes said he recommended Atlantic
Richfield <ARC> on a short-term basis, though he said he is
still suspect about its debt situation. Atlantic Richfield rose
1-3/4 to 77.
    He said "the market could come down to test the 16 dlr a
barrel level again, but the main thrust of investing in oil is
positive right now. Before the year is out we will see higher
oil prices."
    He noted that belief that the government is interested in
raising the strategic reserves is factored into the rise in oil
stocks today.


.I 10938
.C
copper
.W
ZAMBIAN MINISTER CONFIRMS COPPER DIVERSION.
    LUSAKA, March 17 - Minister of Mines Patrick Chitambala
confirmed that Zambia had ended copper shipments through South
Africa and announced that its state-run mining company had
closed down its liaison office in the white-ruled republic.
    He told the official Times of Zambia newspaper in an
interview the government was diverting all mineral exports
along rail routes to Dar es Salaam in Tanzania and Beira in
Mozambique. Chitambala declined to say what volume of copper
and other minerals were being shipped through these two ports,
but he said there had not been any problem with the new
arrangements.
    "So far our copper has been reaching its destinations
without hindrance," he told the Times.
    The Times of Zambia quoted unnamed sources as saying Zambia
exported 100,000 tonnes of copper through Dar es Salaam and
17,000 through Beira in the last quarter of 1986. Diplomatic
sources in Lusaka had earlier expressed doubts over Zambia's
ability to ship all its copper through Beira and Dar es Salaam
without causing massive bottlenecks at the ports.
    Chitambala also said that the state-run Zambia Consolidated
Copper Mines (ZCCM) had closed its liaison office in
Johannesburg, since it was now redundant.


.I 10939
.C
acq
.W
******TAFT CHAIRMAN'S GROUP RAISES TAFT BROADCASTING BID TO 150 DLRS/SHARE.
Blah blah blah.

.I 10940
.C
acq
.W
DEVELOPMENT CORP OF AMERICA <DCA> MERGED.
    HOLLYWOOD, Fla., March 17 - Development Corp of America
said its merger with Lennar Corp <LEN> was completed and its
stock no longer existed.
    Development Corp of America, whose board approved the
acquisition last November for 90 mln dlrs, said the merger was
effective today and its stock now represents the right to
receive 15 dlrs a share.
    The American Stock Exchange said it would provide further
details later.


.I 10943
.C
acq
.W
TEVA <TEVIY> SELLS PROMEDICO SUBSIDIARY.
    NEW YORK, March 17 - Teva Pharmaceutical Industries Ltd,
based in Israel, said it sold its wholly owned Promedico
subsidiary, to foreign investors for four mln dlrs.
    It said the book value of the unit is about 2.2 mln dlrs.
    Teva said it will continue to market Promedico's products
through its wholly owned subsidiary, Salomon, Levin and Elstein
Ltd.
   


.I 10946
.C
earn
.W
NEW MILFORD SAVINGS BANK <NMSB> RAISES PAYOUT.
    NEW MILFORD, Conn., March 17 -
    Qtly div 25 cts vs 20 cts prior
    Pay April 21
    Reord March 27


.I 10947
.C
acq
.W
K MART <KM> ENDS TALKS TO SELL STORES.
    CHICAGO, March 17 - K Mart Corp said recent talks to sell
65 remaining Kresge variety stores and their underlying real
estate to F.W. Woolworth Co <Z> have ended.
    Robert Stevenson, K Mart vice president, told Reuters the
talks, which began about six weeks ago, ended. He declined to
give a reason.
    Kresge is the forerunner of what is now the K Mart chain.
The name was changed to K Mart in 1977, Stevenson said.
    "We're selling and buying real estate in our real estate
division, and Woolworth was interested in some of our
properties. The talks were of a casual nature," he said.
    The 65 Kresge stores that are scattered around the country
in downtown and suburban locations, he said.
    Stevenson said K Mart will continue to operate the stores.
"The stores are profitable. The only decision K Mart has made
is that we will continue to operate them," he said
    Kresge had been a nationwide chain of 900 variety stores.


.I 10948
.C
earn
.W
INSTITUTE OF CLINICAL PHARM PLC <ICPYY> YEAR.
    NEW YORK, March 17 -
    Shr 20 ct vs 27 cts
    Net 1,048,000 vs 1,368,000
    Revs 9,457,000 vs 5,386,000
    NOTE: Dollar amounts converted from Irish pounds at noon
buying rate of the Federal Reserve Bank of New York at Dec 31,
1986, of 1.4105 dlr per one Irish pound. The equivalent rate at
Dec 31, 1985, was 1.2470 dlr equals one Irsh pound. Full name
of company is The Institute of Clinical Pharmacology PLC, based
in Dulbin, Ireland.


.I 10950
.C
gnp;bop;
.W
U.K. GROWTH RATE SEEN AT THREE PCT THIS YEAR.
    LONDON, March 17 - Chancellor of the Exchequer Nigel
Lawson, presenting his budget for fiscal 1987/88 to parliament,
said U.K. Economic growth was forecast at three pct in calendar
1987.
    He said the Treasury expected a current account balance of
payments deficit in 1987 of 2.5 billion stg, after a 1.1
billion shortfall in 1986. Inflation is expected to be 4.0 pct
at the end of 1987, he said, adding it may exceed 4.5 pct by
the summer before falling back to 4.0 pct by the end of the
year.
    The planned PSBR for 1987/88 was 4.0 billion stg unchanged
when compared with the likely outturn for fiscal 1986/87,
Lawson said.
    Although no explicit target was set for the broad sterling
M3 money supply, Lawson said broad money will continue to be
taken into account in assessing monetary conditions as well as
the exchange rate.
    The low outturn of the PSBR in 1986/87 was mainly due to
the buoyancy of non-oil tax revenues in general, and the
corporation tax paid by an increasingly profitable business
sector in particular.
    On oil prices, Lawson said he was sticking to his earlier
assumption that North Sea crude prices will average 15 dlrs per
barrel in calendar 1987. The treasury would strive to keep the
PSBR at 1.0 pct of GDP in future, he said.


.I 10954
.C
earn
.W
ICN BIOMEDICALS INC <BIMD> 1ST QTR FEB 28 NET.
    COSTA MESA, Calif., March 17 -
    Shr 10 cts vs eight cts
    Net 856,000 vs 574,000
    Sales 9,593,000 vs 9,232,000
    Avg shrs 8,809,000 vs 6,969,000


.I 10955
.C
earn
.W
APPLIED CIRCUIT TECHNOLOGY <ACRT> 1ST QTR LOSS.
    ANAHEIM, Calif., March 17 - Period ended January 31.
    Shr loss two cts vs loss 12 cts
    Net loss 192,370 vs loss 1,494,146
    Revs 6,751,830 vs 2,278,842
    Note: Full name Applied Circuit Technology Inc.


.I 10956
.C
earn
.W
FRISCH'S RESTAURANTS INC <FRS> SETS QUARTERLY.
    CINCINNATI, March 17 -
    Qtly div 5-1/2 cts vs 5-1/2 cts prior
    Pay April 16
    Record April Six


.I 10957
.C
money-fx;interest;
.W
******FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 10959
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 17 - The Federal Reserve entered the U.S.
Government securities market to arrange two billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-1/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 10960
.C
earn
.W
FEDERATED DEPARTMENT STORES INC <FDS> 4TH QTR.
    CINCINNATI, March 17 - Jan 31 end
    Shr 3.64 dlrs vs 3.16 dlrs
    Net 171.3 mln vs 154.0 mln
    Sales 3.44 billion vs 3.23 billion
    Avg shrs 47.1 mln vs 48.8 mln
    Year
    Oper shr 6.23 dlrs vs 5.88 dlrs
    Oper net 301.9 mln vs 286.6 mln
    Sales 10.51 billion vs 9.98 billion
    Avg shrs 48.5 mln vs 48.8 mln
    NOTE: Latest year net excludes 14.3 mln dlr charge from
loss on early debt extinguishment.
    Net includes charges 15.7 mln dlrs in both periods of
latest year vs charges 23.9 mln dlrs in both periods of earlier
year from merger of divisions.
    Investment tax credits three mln dlrs vs 8,900,000 dlrs in
quarter and 4,900,000 dlrs vs 16.4 mln dlrs in year.
    Latest year net includes nine mln dlr provision for loss on
disposition of two Abraham and Strauss stores and preopening
expenses for another.
    Latest year net includes gain from sale of interest in Fort
Worth, Texas, shopping center of 9,500,000 dlrs.
    Latest year net both periods includes gain 9,100,000 dlrs
from sale of interest in Memphis, Tenn., shopping center.
    Prior year net includes gain 6,600,000 dlrs on sale of
Boston Store division.


.I 10961
.C
earn
.W
CLOTHESTIME INC <CTME> 4TH QTR NET.
    ANAHEIM, Calif., March 17 -
    Shr 12 cts vs 10 cts
    Net 1,683,000 vs 1,407,000
    Sales 42.2 mln vs 28.8 mln
    Year
    Shr 83 cts vs 70 cts
    Net 11,908,000 vs 10,005,000
    sales 160.3 mln vs 126.5 mln


.I 10964
.C
earn
.W
VIDEO LIBRARY INC <VLVL> 4TH QTR LOSS.
    SAN DIEGO, Calif.,March 17 -
    Shr loss two cts vs profit three cts
    Net loss 59,299 vs profit 88,843
    Revs 3,487,693 vs 2,123,488
    Year
    Shr profit 25 cts vs loss two cts
    Net profit 816,395 vs loss 44,541
    Revs 12.2 mln vs 7,413,328
    Avg shrs 3,208,472 vs 2,348,559


.I 10967
.C
earn
.W
CHEMIE LINZ EXPECTS SHARPLY HIGHER 1986 LOSS.
    LINZ, Austria, March 17 - State-owned <Chemie Linz AG> is
likely to record a 1986 loss of some 600 mln schillings
compared with a 340 mln loss in 1985, a company spokesman said.
    Falling sales and lower world prices of fertilisers were
largely responsible for the sharp increase, along with the
effects of the dollar's fall which has helped to give U.S.
Fibre producers a competitive edge, he told Reuters.
    The firm would have made a small profit in 1985 had it not
been for 456 mln schillings lost by subsidiary <Merx
HandelsgesmbH> on oil trading. Merx has since withdrawn from
the oil market. The firm will announce 1986 results in July.


.I 10968
.C
earn
.W
<CABRE EXPLORATION LTD> SIX MTHS JAN 31 NET.
    CALGARY, Alberta, March 17 -
    Shr 13 cts vs 13 cts
    Net 617,000 vs 604,000
    Revs 1,889,000 vs 1,920,000


.I 10969
.C
acq
.W
DUDLEY TAFT RAISES BID FOR TAFT BROADCASTING<TFB>.
    CINCINNATI, Ohio, March 17 - Dudley Taft and Narragansett
Capital Inc said it was prepared to raise its bid to acquire
Taft Broadcasting Co to more than 150 dlrs per share.
    Taft, through Theta Co, sent and letter to Taft's board of
directors stating he was committed to purchasing the
broadcasting company and was ready to discuss all aspects of
the purchase.
    The company said items to be discussed included price,
structure and form of consideration. Taft said he was prepared
to negotiate a transaction in which Taft Broadcast shareholders
would receive in excess of 150 dlrs per share.


.I 10971
.C
veg-oil
.W
EC OILS TAX NO LONGER MAJOR ISSUE - ASSOCIATION.
    BONN, March 17 - The proposed European Community (EC) tax
on vegetable oils and fats is no longer a major issue on the
agenda and the EC Commission merely used it as a threat, the
West German Feed Stuffs Industry Association (MFI) said.
    Association chairman Ulrich Wagner told a news conference
the West German feed industry believes the EC does not
seriously contemplate the introduction of such a tax because it
would end in another transatlantic trade war.
    "We have just avoided a trade conflict with the U.S. And the
Commission used the tax threat to calm national farm lobbies."
    American Soybean Association (ASA) president-elect Wayne
Bennett said yesterday in The Hague that U.S. Soybean producers
were confident the tax would be rejected.
    Bennett, who is leading one of three soybean delegations on
a lobbying tour of EC capitals, will also visit Bonn on
Thursday and Friday.
    There are indications the Bonn government will also reject
the proposed tax, Wagner said.


.I 10972
.C
acq
.W
ALLWASTE <ALWS> TO BUY RELATED COMPANY.
    HOUSTON, March 17 - Allwaste Inc said it entered into an
agreement in principle to acquire all the outstanding common of
a related air-moving and industrial services company. It did
not disclose the name of the company.
    Allwaste, which preforms air-moving and related services,
said it will swap shares of its common, valued at 2.6 mln dlrs,
with the company it is acquiring.
    It said the acquisition is subject to negotiation of a
final agreement.


.I 10973
.C
crude
.W
EXXON <XON> MAY CLOSE ONE FRENCH REFINERY.
    NEW YORK, MARCH 17 - Exxon Corp, the world's largest oil
company, said in a published interview today that it was
reviewing its worldwide refinery operations and might decide to
close on of its french refineries.
    Lee R. Raymond, Exxon's new president, singled out the
possibility of a closure of one of Exxon's refineries in France
during the interview.
    An Exxon spokeswoman confirmed that Raymond had
specifically mentioned refineries in France but said that no
specific refinery had been named. She also said that all of
Exxon's opertations were under constant review.
    Exxon currently has two refineries in France, FOS in the
mediterranean with a capcity of 175,000 barrels per day and
Port Jerome west of paris with a similar capacity.
    Petroleum Intelligence Weekly, an influential trade
journal, said, in its current issue, that they understood that
Exxon was looking at the possibility of refinery closures in
Antwerp, Southern France or possibly Italy.
    Paul Mlotok, oil analyst with Salomon Brothers inc said
that with the closures Exxon made in 1986 in Europe and the
improvement in the European refining situation, its future
profits there should be good.
    "Exxon and other major oil companies have closed a bunch of
refineries in Europe, upgraded the rest and shaken many of the
indepedents out of the market. Now with demand for products
rising and efficient operations, Exxon should show superior
earnings," Mlotok said.
    "Just after Royal Dutch <RD>, they are seen as one of the
highest grade refiners in Europe," he added.
    Industry sources said that the oil companies were likely to
feel greater pressure on their operations in Southern Europe
where competition from the OPEC countries is increasing as
these producers move further into downstream operations.
    PIW said that refiners in the Mediterranean can expect
increased shipments from Saudi Arabia and other OPEC export
refineries.
    PIW said "sales from Libya, Algeria and elsewhere are
expected to reclaim markets lost to Italian and other European
refiners as a result of the abundance of cheap netback oil last
year."


.I 10975
.C
veg-oil;soybean;
.W
ITALY STANCE ON EC OILS TAX NOT ENCOURAGING-ASA.
    ROME, March 17 - Italy's response to protests by U.S.
Soybean producers about the proposed European Community (EC)
tax on vegetable oils and fats had not been encouraging,
American Soybean Association (ASA) board chairman George
Fluegel said.
    Fluegel, heading one of three U.S. Soybean producer
delegations currently on a lobbying tour of EC countries, told
Reuters in an interview meetings with officials from the
Italian Foreign and Agricultural ministries had not yielded
much to encourage hopes that Italy would vote against the
proposed tax.
    Fluegel said his delegation had received a negative
response from the Italian Agriculture Ministry, but that the
attitude of the Foreign Ministry appeared "more realistic."
    He said the proposed tax was discriminatory against U.S.
Farmers since it was basically asking them to help finance the
EC's Common Agricultural Policy (CAP) on oilseeds.
    Asked which EC countries might be expected to vote against
the proposed tax, he said, "Realistically, from the information
we're getting, it looks like the English, the Germans,
hopefully the Netherlands and Denmark." His delegation also
hoped to convince Belgium to vote against the issue, he added.
    Asked what form he thought U.S. Retaliatory action might
take in the event of the EC tax proposal being approved,
Fluegel said industrial as well as agricultural products could
be involved.
    U.S. Agriculture Secretary Richard Lyng warned the EC
yesterday it would face serious retaliation if it enacted the
tax.
    ASA president-elect Wayne Bennett said yesterday in The
Hague American soybean producers were confident the proposed
tax would be rejected.


.I 10976
.C
cotton
.W
ISRAEL'S FIVE-YEAR PLAN TO BOOST AGRICULTURE.
    TEL AVIV, March 17 - Israel has drawn up a five-year plan
for 1987-1991 to raise agricultural production by 500 mln dlrs
to 2.7 billion dlrs, an annual rise of 3.4 pct, the Israeli
Ministry of Agriculture said. Agricultural exports are to be
increased by 180 mln dlrs, or 4.8 pct per year on average.
    The area planted to cotton is to remain at the 1986 level
of 100,000 to 112,500 acres with exports expected to bring in
80 to 90 mln dlrs per year. The 34 pct decline from the 1985
level reflects continued water rationing which will remain in
force, the ministry said.
    Groundnut production is planned to increase by 13,000
tonnes, or 57 pct, by 1991 and exports by 9,000 tonnes, or 82
pct. Maize production is targetted to rise by 48,000 tonnes, or
48 pct, and exports by 34,000 tonnes, or 45 pct.


.I 10978
.C
acq
.W
SOROS GROUP HAS B.F. GOODRICH <GR> STAKE.
    WASHINGTON, March 17 - An investor group led by New York
investor George Soros said it acquired a 6.1 pct stake in B.F.
Goodrich Co common stock as an investment.
    The group said it paid about 69 mln dlrs for the 1,389,600
Goodrich shares, which are being held by Quantum Fund N.V., a
Netherlands Antilles investment firm advised by Soros.
    It said all the shares were bought between Dec. 29 and
March 9.
    The group said it reserved the future right to buy
additional shares and to formulate other purposes or plans
regarding its Goodrich investment.


.I 10980
.C
housing
.W
BALDRIGE PREDICTS SOLID U.S. HOUSING GROWTH.
    WASHINGTON, March 17 - Commerce Secretary Malcolm Baldrige
predicted 1987 will be the fifth successive year for growth in
housing starts after a 2.6 pct rise overall in February starts
to a seasonally adjusted annual rate of 1.851 mln units.
    "This year should be the fifth solid year in a row for
homebuilding activity -- with single-family units stronger than
multi-family units," he said in a statement.
    Single-family starts rose last month from January levels by
5.6 pct to 1.317 mln units on a seasonally adjusted basis while
multi-family unit starts fell 4.1 pct to 534,000 units, the
department reported.


.I 10981
.C
acq
.W
******TAFT BROADCASTING SAYS IT WILL CONTINUE TO REVIEW OPTIONS IN RESPONSE TO LATEST BID.
Blah blah blah.

.I 10982
.C
acq
.W
******COURT ENJOINS ZICO INVESTMENT'S TENDER FOR BANCROFT CONVERTIBLE FUND.
Blah blah blah.

.I 10983
.C
acq
.W
STEINHARDT GROUP HAS 6.6 PCT OF HOLIDAY <HIA>.
    WASHINGTON, March 17 - A group led by New York investor
Michael Steinhardt told the Securities and Exchange Commission
it bought a 6.6 pct stake in Holiday Corp common stock as an
investment.
    The group said it paid 114 mln dlrs for its 1.6 mln Holiday
shares, 530,000 of which were bought since Feb. 6.
    At the same time, group members said they held short
positions in the stock totaling 830,000 shares.
    In addition to Steinhardt himself, the group includes
Steinhardt Partners and Institutional Partners, two investment
firms of which Steinhardt is one of the general partners.


.I 10986
.C
earn
.W
SCOR U.S. CORP <SURE> 4TH QTR NET.
    NEW YORK, March 17 -
    Oper shr 29 cts vs 22 cts
    Oper net 3.9 mln vs 1.8 mln
    Year
    Oper shr 63 cts vs four cts
    Oper net 10.1 mln vs 855,000
    NOTE: Excludes gain one ct per share vs loss two cts in the
quarter, and gain 41 cts per share vs gain six cts in the year
from investments. Also excludes extraordinary gain of one ct
per share in fourth quarter 1985, and gain of one ct per share
vs one ct in the full year period.


.I 10988
.C
earn
.W
GENSTAR SALE BOOSTS BELGIAN SOCIETE GENERALE NET.
    BRUSSELS, March 17 - Societe Generale de Belgique <BELB.BR>
said the near doubling of net profits in 1986 was due in large
part to the sale of shares in Genstar Corp.
    The company, which announced a net non-consolidated profit
of 5.31 billion francs compared with 2.82 billion in 1985, said
its current profits rose by 19 pct last year, without giving
further figures.
    However, it added in a statement that the company made
major capital gains on sales during the year, in particular
from the sale of Genstar shares.
    Societe Generale governor Rene Lamy told last November's
annual meeting that 1986 asset disposals would total around 4.5
billion francs, including the sale of Genstar shares to Imasco
Limited <IMS.TO>.
    He predicted a profit on extraordinary items of two billion
francs after a rough balance in 1985.
    In today's statement, Societe Generale gave no figures for
extraordinary gains.


.I 10991
.C
earn
.W
WESTERBEKE CORP <WTKB> 1ST QTR JAN 31 LOSS.
    AVON, Mass., March 17 -
    Shr loss 11 cts vs profit six cts
    Net loss 217,200 vs profit 83,200
    Revs 3,564,200 vs 3,171,900
    Avg shrs 2,033,750 vs 1,334,950


.I 10992
.C
wheat;grain;
.W
U.S. HOUSE TARGETING PROPOSAL SPARKS INTEREST.
    WASHINGTON, March 17 - A proposal by two U.S. House
Democrats to target government farm benefits to small- and
medium-sized farms was warmly received by Democrats on a
House subcommittee today.
    "On balance, this is the best new idea I have seen," said
Rep. Dan Glickman (D-Kan.), Chairman of the House Agriculture
Subcommittee on Wheat, Feedgrains and Soybeans. "This is the
first hard constructive proposal coming out as an alternative
to the (Reagan) administration's farm proposal."
    The plan, offered by Reps. Tim Penny (D-Minn.) and Byron
Dorgan (D-ND), would raise target prices for wheat to 5.00 dlrs
per bushel and for corn to 3.50 dlrs. Producers could receive
deficiency payments on up to 80 pct of normal yield but not
more than on 30,000 bu of corn and 20,000 bu of wheat.
    The proposal also would require acreage reductions of 20
pct, eliminate generic certificates and prohibit persons not
actively engaged in farming from receiving program benefits.
    Dorgan said the bill would save 24 billion dlrs over five
years, protect family farms and eliminate government
accumulation of stocks because nonrecourse loans would be
halted.
    However, Rep. Pat Roberts (R-Kan.) said the measure would
"involve the federal government in deciding and defining who a
family farmer is."
    Roberts said the bill, for example, would restrict program
payments to 500 acres of wheat production in western Kansas.
    Other Republicans on the panel questioned how the bill
would determine if a person was actively engaged in farming and
therefore eligible for payments.


.I 10994
.C
wheat;grain;
.W
EC TO MULL NEW DURUM WHEAT INTERVENTION RULES.
    BRUSSELS, March 17 - The European Commission is to consider
proposed new higher minimum standards for sales of durum wheat
into intervention stores, European Community sources said.
    They said a document drawn up by Commission officials
proposes a reduction in the maximum humidity level to 13 pct
from 14, an increase in the minimum weight to 78 kilos per
hectolitre from 76, a tightening of other technical standards
and introduction of some new ones.
    Current public stocks of durum wheat in the EC are 1.15 mln
tonnes, of which almost 1.12 mln are in Italy.


.I 10995
.C
acq
.W
COURT ENJOINS TENDER FOR BANCROFT <BTV>.
    NEW YORK, March 17 - Bancroft Convertible Fund said the
U.S. District Court for the District of New Jersey issued a
preliminary injunction, enjoining <Zico Investment Holding
Inc's> tender offer for Bancroft.
    It said the Court order prevents Zico from buying any
shares tendered to them during the offer, which began on Feb.
17, 1987.
    In the tender offer blocked by the Court, Zico offered to
buy 500,000 shares, or about 22 pct of Bancroft's outstanding
stock, for 30 dlrs a share.
    Previously, Zico had bought 965,000 Bancroft shares for 31
dlrs a share, giving it about 28 pct of the company. If the
recent offer had gone through, the Zico would have owned
slightly more than 50 pct of Bancroft's outstanding shares.
 


.I 10996
.C
money-fx
.W
ZAMBIAN EXCHANGE AUCTION TO RESUME AT END OF MARCH.
    LUSAKA, March 17 - Zambia will reintroduce a modified
foreign exchange auction at the end of this month as part of a
new two-tier exchange rate, central bank governor Leonard
Chivuno said.
    Chivuno told a press conference at the end of three weeks
of negotiations with the International Monetary Fund (IMF) that
there would be a fixed exchange rate for official transactions
and a fluctuating rate, decided by the auction, for other types
of business.
    The Bank of Zambia previously held weekly auctions to
distribute foreign exchange to the private sector and determine
the kwacha's exchange rate, but these were suspended at the end
of January.
    President Kenneth Kaunda said at the time that he was
suspending the auction system in view of the rapid devaluation
and violent fluctations of the exchange rate which had
resulted.
    Business and banking sources said another reason for
suspending the auction was that the central bank was low on
foreign exchange and was 10 weeks behind in paying successful
bidders.    The kwacha stood at 2.2 per dollar when the auction system
was first introduced in October 1985, but it slid to around 15
per dollar by the time it was suspended 16 months later.
    Since then, Zambia has operated a fixed exchange rate of
about nine kwacha per dollar.


.I 10997
.C
earn
.W
JAMESWAY CORP <JMY> 4TH QTR JAN 31 NET.
    SECAUCUS, N.J., March 17 - 
    Shr primary 64 cts vs 45 cts
    Shr diluted 60 cts vs 44 cts
    Net 4,524,000 vs 3,212,000
    Revs 202.5 mln vs 171.9 mln
    Avg shrs primary 7,112,480 vs 7,052,964
    Avg shrs diluted 8,034,223 vs 8,008,763
    Year
    Shr primary 1.70 dlrs vs 1.31 dlrs
    Shr diluted 1.65 dlrs vs 1.30 dlrs
    Net 12.1 mln vs 9,252,000
    Year
    Revs 612.4 mln vs 523.4 mln
    Avg shrs primary 7,112,480 vs 7,052,964
    Avg shrs diluted 8,034,223 vs 7,732,544
    Note: Includes after-tax LIFO charges of 441,000 dlrs vs
359,000 dlrs for qtr and 539,000 dlrs vs 407,000 dlrs for year.


.I 10998
.C
acq
.W
TAFT <TFB> TO CONTINUE TO REVIEW ALTERNATIVES.
    CINCINNATI, Ohio, March 17 - Taft Broadcasting Co said its
board continues to explore alternatives, such as a possible
financial restructuring, in response to a Theta Corp offer of
150 dlrs per share for Taft stock.
    Last week Taft rejected a 145 dlr-a-share bid by Theta, an
investment group headed by Taft's vice chairman, Dudley Taft.
    Taft also said the new proposal would be submitted to the
board but no decision had been made with respect to the sale of
the company.
    In the proposal, Theta said it was prepared to discuss all
aspects of the offer including price, structure and form of
consideration and would be prepared to negotiate a transaction
in which shareholders would receive a value in excess of 150
dlrs per share.
    Taft said Theta requested that the company cooperate and
provide it with information subject to an appropriate
confidentiality agreement.
    The company declined to comment beyond this statement.



.I 10999
.C
crude
.W
LAWSON OIL TAX BREAKS TO HELP NEW FIELDS - REVENUE.
    LONDON, March 17 - Two new U.K. Tax relief measures for oil
producers, announced today, are aimed at encouraging
developments in the North Sea to go ahead and boost
opportunities for the offshore supplies industry, the Inland
Revenue said in a post-budget statement.
    Earlier, Chancellor of the Exchequer Nigel Lawson announced
in his annual budget to Parliament that from today, companies
will be allowed to offset up to 10 pct of qualifying
development expenditure on certain future oil fields against
Petroleum Revenue Tax (PRT).
    To date, full relief was allowed for expenditure on an
individual field itself, when its income stream began, but was
not immediately available against other development
expenditure, the statement said.
    The new relief will apply to fields outside the southern
basin for which development
consent is first given on or after today, and will improve the
post-tax economics of new developments and encourage companies
to proceed with project which might have been delayed, it said.
    Lawson also announced that he would henceforth allow
certain expenditure on oil related research which does not at
present qualify for PRT relief to be offset against PRT
liability.
    This means oil-related expenditure in the U.K. Or on the
U.K. Continental shelf, which has not become allowable in a
particular field within three years of being incurred, to be
allowed against PRT liability in any oil field, the Inland
Revenue said.
    This brings the scope of PRT relief for research costs more
in line with corporation tax relief measures, and is planned to
encourage general research into ways of reducing field
development costs, it said.
    In due course, the industry should benefit by over 100 mln
stg a year, it calculated.
    The Inland Revenue statement also included other technical
measures that Lawson did not comment on in his budget speech.
    These included measures to allow companies to balance their
shares of PRT-exempt oil allowances through reallocation in two
past periods of allowance utilisation.
    Tidier rules on incorrectly allowed PRT expenditure reliefs
were announced, while there were also ammendments on rules on
corporation tax and Advance Corporation Tax relating to the
so-called "ring fence" of activities in the U.K. And its
continental shelf. The Finance Bill will have provisions for
the implementation of measures announced in November, it said.
    Gareth Lewis Davies, a North Sea expert with stockbrokers
Wood Mackenzie and Co Inc in Edinburgh, thought the two reliefs
on PRT would help the depressed offshore industry.
    He said the 10 pct cross field allowance relief would
favour chances that development of smaller North Sea fields
such Osprey, Don and Arbroath would be brought forward.
    Early development of the larger Miller and Bruce oil fields
might also be encouraged, he said.
    Lewis Davies said the measure might also aid the offshore
construction industry, which suffered a huge amount of lay-offs
under the price slump of more than 50 pct last year.
    He pointed out that the relief only applies to the
development of new fields outside the Southern Basin.
    This means more jobs could be created, as the fields in the
central and northern sectors of the North Sea are deeper than
in the south and thus have greater capital and labour
requirements as the waters are deeper than in the south.
    He said the PRT relief for certain research expenditure
would help fundamental research in the oil industry, although
the benefits of this research would not be seen for several
year.


.I 11001
.C
earn
.W
SHONEY'S INC <SHON> 1ST QTR FEB 15 NET.
    NASHVILLE, Tenn., March 17 - 
    Shr 31 cts vs 27 cts
    Qtly div four cts vs four cts prior
    Net 11.4 mln vs 9,905,528
    Revs 194.3 m ln vs 171.7 mln
    Note: Qtly div is payable April 22 to shareholders of
record April three.


.I 11003
.C
acq
.W
ATT-PHILIPS BID FOR CGCT OUTLINED.
    PARIS, March 17 - American Telephone and Telegraph Co and
Philips Telecommunications BV (APT) would hold 36 pct through
direct and indirect holdings in France's <Cie Generale de
Constructions Telephoniques> if a joint bid with French
partners for the soon-to-be-privatised firm succeeds, a
director at one of the partner firms said.
    Marc Mathieu of <Societe Anonyme de Telecommunications>
SAT, told journalists the bid foresaw a direct stake of 20 pct
for APT, the joint firm set up by the U.S.'s ATT <T.N.> and the
NV Philips Gloeilampenfabrieken <PGLO.AS>.
    The other 80 pct would be owned by a holding company made
up of SAT, APT, Cie du Midi <MCDP.PA> and five mutual funds.
   Under French law, foreign investors are restricted to a 20
pct direct stake in privatised companies but can boost their
stake to 40 pct through indirect holdings.
    The make-up of the holding company, however, is subject to
close discussions within the government due to legal queries
over the nationality of the mutual funds, a Finance Ministry
official said.
    Although bought by French citizens they are managed by
foreign banks <Morgan Guaranty Trust Co of New York> and
<Banque de Neuflize, Schlumberger, Mallet SA>, controlled by
Algemene Bank Nederland NV <ABNN.AS>, an SAT spokesman said.
    CGCT, which controls 16 pct of the French public telephone
switching market, is to be sold by the government for 500 mln
francs by private tender.
    Five groups are bidding for the company and the government
has said it will choose CGCT's new owner by the end of April.
    APT vice-president Wim Huisman told a news conference a
capital increase was envisaged if SAT-APT wins CGCT, but
declined to give details or say how an increase would affect
foreign stakes in CGCT.
    In 1985, CGCT posted losses of 200 mln francs on sales of
three billion after 1984 losses of 997 mln francs.
    A joint SAT-APT statement added that buyers were committed
to investing 240 mln francs in CGCT research and production
plants. The APT-SAT offer includes a provision for CGCT to
produce APT 5ESS-PRX switching technology and adapt it to
French standards.
    The tender was launched after a 1985 draft agreement for
ATT to take over CGCT was abandoned following the introduction
of the French government privatisation laws which reopened
bidding among a wider range of applicants.
    Other candidacies to take over CGCT include West Germany's
Siemens AG <SIEG.F> allied with Schneider SA <SCHN.PA>
subsidiary Jeumont-Schneider, Sweden's Telefon AB LM Ericsson
<ERIC.ST> allied with Matra <MATR.PA> and Bouygues SA
<BOUY.PA>, Italy's <Italtel>, and Canada's Northern Telecom Ltd
<NTL.TO>.


.I 11004
.C
interest
.W
ANALYSTS SEE EARLY ONE POINT CUT IN U.K. BASE RATE.
    LONDON, March 17 - British bank base lending rates are
likely to fall by as much as one full point to 9-1/2 pct this
week following the sharp three billion stg cut in the U.K.
Central government borrowing target to four billion stg set in
today's 1987 budget, bank analysts said.
    The analysts described Chancellor of the Exchequer Nigel
Lawson's budget as cautious, a quality which currency and money
markets had already started to reward.
    Sterling surged on foreign exchange markets and money
market interest rates moved sharply lower as news of the budget
measures came through, the analysts said.
    Lloyds merchant bank chief economist Roger Bootle said he
expected base rates to be cut by one full point tomorrow.
    "This is very much a safety-first budget in order to get
interest rates down," he said.
    Bootle said the money markets had almost entirely
discounted such a one point cut, with the key three month
interbank rate down to 9-11/16 pct from 9-13/16 last night, and
it would be rather conservative for banks to go for a
half-point cut now.
    Midland Bank treasury economist David Simmonds said he,
too, expected base rates would be a full point lower by Friday,
but this would likely happen via two half-point cuts.
    "This budget is designed to please both the markets and the
electorate. The implications for interest rates are very
favourable, we could have a half-point cut tomrorow and another
such cut before the end of the week," Simmonds said.
    Pointing to buoyant U.K. Retail data released yesterday, he
said Lawson had done well to resist pressures for a sharp cut
in income tax rates at the expense of a lower borrowing target.
"There is no real need to boost private consumption," he said.
    National Westminster Bank chief economist David Kern said
the lower borrowing target set in the budget had increased the
likelihood of an early one-point base rate cut.
    Kern said the budget would have to be analysed carefully,
in particular to see how exactly Lawson planned to achieve the
sharper than expected borrowing target cut, before a one-point
base rate cut could be implemented.
 But providing the budget small-print was convincing, "and I
suspect it will be, it is entirely possible that we see one
point off base rates by the end of this week," Kern said.
    Bootle of Lloyds said the expected base rate cut would pave
the way for an early one-point cut in mortgage lending rates.
This would help achieve Lawson's lower than expected consumer
price inflation target of four pct at end-1987, he said.
    U.K. Base rates were cut last week to 10-1/2 pct from 11
pct after sustained pressure from the foreign exchange, money
and government bonds (gilts) markets.
    But building societies said they would not cut lending
rates until base rates had fallen by one full point.


.I 11005
.C
acq
.W
TOUSSIE GROUP SELLS HECK'S <HEX> SHARES.
    WASHINGTON, March 17 - A shareholder group led by New York
investor Robert Toussie told the Securities and Exchange
Commission it sold off most of its holdings in Heck's Inc
common stock but reserved the right to again seek control of
the company in the future.
    The group, which includes the Edward A. Viner and Co
brokerage, said it sold 579,600 shares since March 5, leaving
it with 157,000 shares or 1.8 pct of the total outstanding.
    The group had proposed a takeover of Heck's in September
but later withdrew the offer, and Heck's on March 5 filed for
protection from its creditors under federal bankruptcy law.


.I 11006
.C
acq
.W
CYCLOPS <CYL> HOLDER WITHDRAWS TAKEOVER MOTION.
    NEW YORK, March 17 - <Dixons Group PLC>, which is in a
battle with <CYACQ Corp> for control of Cyclops Corp, said a
Cyclops shareholder had agreed to withdraw a motion in U.S.
District Court to prevent Dixons from completing its tender
offer for Cyclops, which expires 2400 EST today.
    Dixons did not name the shareholder and did not disclose
the holder's stake in Cyclops.
   


.I 11007
.C
earn
.W
<NOMA INDUSTRIES LTD> YEAR NET.
    TORONTO, March 17 -
    Shr 72 cts vs 58 cts
    Net 20.8 mln vs 14.9 mln
    Revs 328.7 mln vs 239.8 mln
    Avg shrs 28.9 mln vs 25.7 mln
    Note: Prior year shr restated for June, 1986 two-for-one
stock split


.I 11009
.C
acq
.W
FIRM HAS COOPERVISION <EYE> STOCK, WILL BUY MORE.
    WASHINGTON, March 17 - Siebel Capital Management Inc, a
California investment adviser, told the Securities and Exchange
Commission (SEC) it bought 1.3 mln CooperVision Inc common
shares or 5.9 pct of the total outstanding.
    In its SEC filing, the firm said it "intends to acquire more
stock and may attempt to influence management of the company to
make major changes in the company's business or corporate
structure."
    Siebel said it made net purchases of 163,200 CooperVision
shares since Jan. 1.


.I 11014
.C
acq
.W
AMERICAN CYANAMID <ACY> BUYS U.K. COMPANY.
    WAYNE, N.J., March 17 - American Cyanamid Co said it bought
the 50 pct interest of Cyanamid Fothergill Ltd held by
<Fothergill and Harvey PLC>, making the unit a wholly owned
subsidiary.
    The unit manufactures structural materials, including
advanced composites, adhesives, and aluminum honeycomb for the
European space industry.
    The current management will remain in place and the unit
will continue at its locations in Wrexham, U.K., the company
said.


.I 11015
.C
earn
.W
NOEL INDUSTRIES INC <NOL> 1ST QTR JAN 31 LOSS.
    NEW YORK, March 17 -
    Shr loss 26 cts vs loss 12 cts
    Net loss 289,649 vs loss 138,372
    Revs 5,944,286 vs 5,902,074


.I 11016
.C
acq
.W
GROUP BOOSTS GELCO <GEL> STAKE TO 8.2 PCT.
    WASHINGTON, March 17 - An investor group including New
York-based Mutual Shares Corp and Mutual Qualified Income Fund
Inc told the Securities and Exchange Commission it raised its
stake in Gelco Corp common stock to 575,859 shares or 8.2 pct
of the total outstanding.
    The group said its most recent purchases included 241,000
shares bought between January 21 and March 10.
    The group said it purchased the shares for investment
purposes.


.I 11017
.C
earn
.W
OSHMAN'S SPORTING GOODS INC <OSHM> 4TH QTR NET.
    HOUSTON, March 17 - Qtr ended Jan 31
    Shr 92 cts vs 1.28 dlrs
    Net 5,415,000 vs 7,730,000
    Revs 114.2 mln vs 112.9 mln
    Avg shrs 5,864,000 vs 6,030,000
    Year
    Shr 45 cts vs 1.40 dlrs
    Net 2,664,000 vs 8,536,000
    Revs 322.9 mln vs 312.3 mln
    Avg shrs 5,885,000 vs 6,105,000
   
    Note: Net includes LIFO gains of 48,000 dlrs vs 118,000
dlrs for qtr and charges of 257,000 dlrs vs 225,000 dlrs for
year.


.I 11018
.C
earn
.W
UNIVERSITY PATENTS INC <UPT> 2ND QTR JAN 31 NET.
    WESTPORT, Conn., March 17 -
    Oper shr 24 cts vs 19 cts
    Oper net 1,096,332 vs 794,711
    Revs 803,085 vs 442,420
    Six mths
    Oper shr 53 cts vs 43 cts
    Oper net 2,375,844 vs 1,741,437
    Revs 1,471,257 vs 768,683
    NOTE: Prior year excludes income from discontinued
operations of 19 cts per share in the quarter and 17 cts per
share in the year.


.I 11019
.C
earn
.W
FREEDOM FEDERAL <FRFE> SETS INITIAL PAYOUT.
    OAK BROOK, Ill., March 17 - Freedom Federal Savings Bank
said it voted its first cash dividend of 10 cts a share,
payable April 10, record March 31.
    The 1987 annual dividend will be 40 cts a share, it said.



.I 11020
.C
earn
.W
HOSPITAL STAFFING SERVICES <HSSI> 1ST QTR NET.
    FORT LAUDERDALE, Fla., March 17 - Qtr ends Feb 28
    Shr six cts vs three cts
    Net 189,683 vs 80,499
    Revs 2,874,930 vs 2,594,474
    NOTE: Full name Hospital Staffing Services Inc.
    Prior year includes extraordinary gain of one ct per share.


.I 11021
.C
dlr;money-fx;
.W
DOLLAR VALUE APPROPRIATE, BUNDESBANK OFFICIAL SAYS.
    LONDON, March 17 - The dollar is near appropriate levels
against European currencies and the yen, and a further fall
could damage confidence in the currency while endangering world
economic growth, a top Bundesbank official said.
    Board member Leonhard Gleske also told a Forex Association
conference current exchange rates of major currencies "can be
viewed as equilibrium levels in a medium-term perspective."
    He said the recent Paris agreement on currency
stabilisation and policy coordination between the Group of Five
and Canada may herald "an era of greater exchange rate
stability."
    The Paris agreement was not, however, an attempt to set up
permanent target zones for exchange rates, Gleske stressed,
adding such targets would be extremely difficult to agree and
enforce on an international level.
    "At present levels the dollar can no longer be considered
grossly overvalued in relation to the European currencies and
the yen," Gleske said.
    He said the dollar had fallen much less against currencies
of important trading nations such as Canada, Korea, Taiwan and
Hong Kong, and further falls there may still be necessary.
    But "a further dollar depreciation against major European
currencies and the yen may not be the best way to restore the
dollar to a fully competitive position, as measured by its
weighted external value," he said.
   In fact, a further marked decline in the dollar rate would
hold two major dangers, Gleske said.
    First, in countries with large balance of payments
surpluses such as Japan and West Germany, it threatened to
hamper economic growth and thus slow down the expansion of real
income and domestic expenditure necessary to wipe out
surpluses.
    Second, in the United States, it could damage investors'
confidence in the dollar and thus reduce their willingness to
finance huge fiscal and external payments deficits, Gleske
said.
    Gleske also was strongly sceptical that an international
system of binding target zones for currencies, fluctuating in
narrow bands against each other, can be established. Such
targets threatened to cause policy conflicts, "both within
countries and between them."
    For instance, the U.S. Reliance on foreign capital to fund
its deficits requires interest rates there be set at high
levels, but domestic considerations call for low ones.
    If target zones were established, this would put "pressure
on other countries to reduce their interest rates even more,
even though this may be in conflict with their own domestic
situation and priorities," he said.
    Gleske added, "targeting the exchange rate even within a
wide margin will meet with serious objections where there is a
clearly perceived potential for conflict between domestic and
external policy priorities."
    Commenting on the Paris currency accord, Gleske said its
chances of stabilising exchange rates rested heavily on current
interest rate differentials being maintained.
    These chances "seem to me to rest critically on the
expectation that the current configuration of interest rates,
and the monetary policies behind them, will assure smooth
financing of current account imbalances in the months ahead."
    Gleske said past experience of currency adjustments had
learned "that markets are inclined to be impatient and will thus
tend to overshoot." He said this "would seem to be unnecessary
and should be avoided if at all possible."
    Monetary policies can help achieve this, but only if
markets believe that pledged changes in fiscal policies will
lead to balanced international payments, he said.


.I 11024
.C
crude
.W
PLAINS <PLNS> POSTS RESERVES INCREASES.
    OKLAHOMA CITY, March 17 - Plains Resources Inc said that as
of December 31, its estimated proved oil and gas reserves rose
by 27 pct to 5.43 mln barrels from 4.27 mln barrels and proved
developed reserves rose 16 pct to four mln barrels from 3.45
mln barrels a year ago.
    The company said its year end reserves did not include the
oil and gas reserves of Houston Oil Fields Co which recently
agreed to merge with it, pending shareholder approval in
mid-April. If approved, the merger will add another 3.2 mln
barrels to the company's reserve base.


.I 11026
.C
earn
.W
OSHMAN'S <OSHM> CITES WEAK REGIONAL ECONOMIES.
    HOUSTON, March 17 - Oshman's Sporting Goods Inc said
earnings for the fourth quarter ended January 31 were affected
by the weak economies of Texas, Oklahoma and Louisiana,
resulting in a drop in net earnings to 5,415,000 dlrs or 92 cts
a share from 7,730,000 dlrs or 1.28 dlrs a share for the
year-ago quarter.
    The company also said sales on the West Coast were hurt by
late snows and poor skiing conditions.
    Same-store sales declined 3.2 pct for the quarter and 2.2
pct for the year.
    For the full year, Oshman's net earnings fell to 2,664,000
dlrs or 45 cts a share, from 8,536,000 dlrs or 1.40 dlrs a
share.
    In 1986, the company said it opened nine stores and closed
three.
    At year-end, the company said it was operating 188 Oshman's
stores and 27 Abercrombie and Fitch stores.


.I 11027
.C
wheat;grain;rice;
.W
CHINA CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, March 17 - Light, scattered showers covered
winter wheat areas in the North China Plain in the week ended
March 14, moistening topsoils for wheat, just breaking dormancy
in most central and northern areas, the Joint Agricultural
Weather Facility of the U.S. Agriculture and Commerce
Departments said.
    In its International Weather and Crop summary, the agency
said southern winter wheat areas are in the early vegetative
stage. Above-normal February temperatures over the North China
Plain caused winter grains to break dormancy early in the
south.
     Moderate to heavy rains in southern Jiangsu, Anhui,
eastern Hebei, Hunan , Jiangxi, Fujian, and Zheziang, reversed
February's below normal precipitation pattern.
    The agency said the wet weather in these areas provided
ample moisture for rice planting and lessened the need for
irrigation. 
    Mostly dry weather in early-rice areas of Guanxi and
Guandong resulted in irrigation for continued rice planting, it
said.


.I 11028
.C
earn
.W
WORTHINGTON INDUSTRIES INC <WTHG> 3RD QTR NET.
    COLUMBUS, Ohio, March 17 - Qtr ended Feb 28
    Shr 24 cts vs 24 cts
    Net 10.0 mln vs 10.1 mln
    Revs 202.8 mln vs 184.6 mln
    Nine mths
    Shr 66 cts vs 67 cts
    Net 27.3 mln vs 27.6 mln
    Revs 588.2 mln vs 539.2 mln
    Note: 1986 shr data adjusted for 3-for-2 stock split paid
October 1986.


.I 11029
.C
oilseed;soybean;
.W
BRAZIL CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, March 17 - Wet weather covered Rio Grande do
Sul, Brazil in the week ended March 14, benefitting soybeans
which are mostly setting to filling pods, the Joint
Agricultural weather Facility of the U.S. Agriculture and
Commerce Departments said.
    In its International Weather and Crop Summary, the agency
said minimal precipitation covered soybean areas in Santa
Catarina, Parana, and southern Matto Grosso do Sul.
    Adequate soil moisture in these areas met crop moisture
demands, reducing the potential for crop stress, it said.
    The agency said February precipitation was above normal
over most soybean areas of Brazil.
    Weekly temperatures were below normal, it said.


.I 11032
.C
crude
.W
U.S. WARNS OF DEPENDENCE ON FOREIGN OIL.
    WASHINGTON, March 17 - A White House-ordered report said 
that growing U.S. reliance on foreign oil into the year 2000
could have potentially damaging implications for national
security.
    The Energy Department study discusses several options to
curb reliance on foreign oil, but makes no recommendations.
    President Reagan and most Congressmen have previously ruled
out a tax on foreign oil as a way to curb imports and to help
the depressed domestic oil industry.
    Energy Secretary John Herrington said in a statement that
"although we have made gains in energy security in the last six
years, this report shows that there is justification for
national concern both over declining competitiveness of our
domestic oil and gas industry and over rising oil imports."
    The report said imports last year were 33 pct of U.S.
consumption and by the mid-1990s could rise to 50 pct.
    Among the report's options to ease U.S. reliance on foreign
oil are several already advocated by the Reagan Administration.
    President Reagan ordered the study last September, citing a
determination that the country never again become captive to a
foreign oil cartel, referring to the OPEC-led oil shortages and
sharp prices increases of the 1970s.
    The report said an import fee would raise prices and help
make it economical for U.S. oil firms to find and produce new
oil, as well as to cut imports, but on the whole the tax would
depress the nation's economy.


.I 11033
.C
acq
.W
VTX ELECRONICS <VTX> SETS SDTOCK SPLIT.
    FARMINGDALE, N.Y., March 17 - VTX Electronics Corp said its
board declared a five-for-four stock split, payable April Nine
to holders of record March 27.


.I 11034
.C
acq
.W
COASTAL (CGP) SEES INCREASE IN 1987 PROFITS.
    HOUSTON, March 17 - Coastal Corp said it expected earnings
for 1987 "to be significantly above" profits of 71.6 mln dlrs
last year.
    In a letter to shareholders appearing in the company's
newly-issued 1986 annual report, Coastal chairman Oscar Wyatt
did not elaborate on how much earnings were expected to
increase.
    The 1986 profits of Coastal, a natural gas production and
pipeline company, were halved from 1985 levels due to slumping
energy prices. The company's sales totaled 6.7 billion dlrs
last year.
    Coastal also said it sold its natural gas for an average
price of 2.17 dlrs per mcf in 1986, a drop of 18 pct from the
previous year. Oil and natural gas liquids sold for an average
14.20 dlrs a barrel in 1986, a reduction of 37 pct.
    The Houston-based company, which produced a daily average
of 120 mln cubic feet of gas and 11,149 barrels of oil, said it
had proved reserves at yearend 1986 of 28.6 mln barrels of oil
and 954 billion cubic feet of natural gas. Average reserve
replacement costs were 8.28 dlrs per barrel of oil equivalent
during the past three-year period, representing a little more
than half of the industry average, the company said.
    Coastal's more than 800 gasoline retail outlets were
operated profitably during 1986 "and are expected to continue
to do so," the company said.


.I 11036
.C
earn
.W
(REPAP ENTERPRISES CORP INC) 4TH QTR NET.
    MONTREAL, March 17 -
    Shr profit 26 cts vs loss nine cts
    Net profit 10.3 mln vs loss 1.0 mln
    Revs 208.2 mln vs 123.3 mln
    Year
    Shr profit 38 cts vs profit nine cts
    Net profit 13.0 mln vs profit 2.8 mln
    Revs 635.5 mln vs 429.3 mln
    Note: 1986 full year results include extraordinary loss of
one mln dlrs or three cts per share.


.I 11037
.C
acq
.W
NORSTAR <NOR> SETS ACQUISITION FOR STOCK.
    ALBANY, N.Y., March 17 - Norstar Bancorp said it has agreed
in principle to acquire United National Bank of Callicoon,
N.Y., by exchanging three Norstar common shares for each of the
201,660 United shares outstanding.
    Based on the recent price of Norstar's stock, it said, the
proposed tax-free exchange would have a market value of about
20 mln dlrs.
    Norstar said the acquisition is subject to approval by
United's holders and state and federal regulators. United has
assets of 90 mln dlrs.


.I 11038
.C
crude
.W
U.S OIL TAX WOULD NOT AFFECT PDVSA-CHAMPLIN DEAL.
    Caracas, march 17 - an eventual oil import fee in the
united states will make no difference to champlin petroleum
corp's joint venture agreement signed today with petroleos de
venezuela (pdvsa), champlin chairman william adams said.
    "this was an aspect which was discussed at length during the
negotiations, but we can say our contract covers all
eventualities in this regard," he told reuters during the
signing ceremony here.
    Venezuela's energy and mines minister arturo hernandez
grisanti earlier described the agreement, under which pdvsa
buys 50 pct of champlin's corpus christi refinery, as "one more
step in the maturation and presence of our oil industry in
world markets."
   union pacific chairman william cook said the agreement will
be beneficial to both sides, combining a secure source of
supply with a modern refinery and access to markets.
    "we are looking to a long-term relationship, and at a time
of protectionist tendencies in the U.S. Congress there are
clear benefits to both sides," he said.
    Adams said pdvsa crude would remain competitive even with
an oil import fee because champlin had invested heavily over
the years in adapingthe texas refinery to process venezuelan
heavy crudes with coking and hydro-treating facilities and
obtain a competitive product yield.
    "therefore while the danger of an oil import fee has been a
consideration in the negotiations, and it remains to be seen
what such a fee would represent, we do not foresee any impact
on today's agreement," adams said.
    He said the refinery could run crude as heavy as
venezuela's bolivar coastal field (bcf) 17 api without any
difficultiesand would probably move over time to a heavier diet
to take advantage of bigger margins.
    The refinery has a capacity to process up to 110,000 bpd of
venezuelan high sulphur content heavy crude, with an 80-85 pct
yield of white products.


.I 11040
.C
wheat;grain;
.W
LYNG TO MEET WITH EXPORTERS, EEP LIKELY TOPIC.
    WASHINGTON, March 17 - Secretary of Agriculture Richard
Lyng will meet with representatives from major grain exporting
companies today, and the subject of subsidized wheat to the
Soviet Union will likely be discussed, an aide to Lyng said.
    Today's meeting, set to begin at 1500 EST (2000 gmt), was
scheduled at the request of the exporters, the aide said.
    "The EEP (export enhancement program) is pretty obviously
one of the things they (the exporters) want to talk about, but
they haven't any agenda as far as I know," Lyng's aide said.
    Private industry export officials have met periodically
with Lyng to discuss farm policies and the export situation.
Whether this meeting will prompt any U.S. action on the issue
of whether Moscow will be offered export bonus wheat is
uncertain, the aide said.
    "I don't know what they'll tell us that we don't already
knwo, but we'll hear what they have to say," Lyng's aide said.
    The USDA official said that as far as he knows there has
been no further action on offering the Soviet Union wheat under
the EEP.


.I 11041
.C
cocoa
.W
ICCO GROUP LOOKS AT COCOA BUFFER STOCK RULE PLAN.
    LONDON, March 17 - The International Cocoa Organization,
ICCO, buffer stock working group began examining a draft
proposal for buffer stock rules this afternoon, delegates said.
    The plan, presented by ICCO Executive Director Kobena
Erbynn, represented a compromise between producer, European
Community, EC, and other consumer views on how the buffer stock
should operate, they said.
    The proposal involved three key principles. First, the
buffer stock manager would be open to offers for cocoa rather
than using fixed posted prices as previously, delegates said.
    Under an offer system, the buffer stock manager would be
free to choose cocoas of varying prices, they said.
    The second provision was that non-ICCO member cocoa could
comprise a maximum 10 pct of the buffer stock, while the third
laid out a pricing system under which the buffer stock manager
would pay differentials for different grades of cocoa, to be
set by a formula, the delegates said.
    After the plan was presented, working group delegates met
briefly in smaller groups of producers, EC consumers and all
consumers to look at the proposal. Producers gave no reaction
to the scheme and will respond to it when the working group
meets tomorrow at 1000 GMT, producer delegates said.
    Consumer members accepted the proposal as a good base to
work from, one consumer delegate said.
    Delegates said the proposal was only a starting point for
negotiations on buffer stock rules and subject to change.


.I 11042
.C
earn
.W
VTX ELECTRONICS CORP <VTX> 4TH QTR NET.
    FARMINGDALE, N.Y., March 17 -
    Shr 10 cts vs 11 cts
    Net 255,000 vs 242,000
    Sales 7,166,000 vs 6,486,000
    Avg shrs 2,438,000 vs 2,118,000
    Year
    Shr 50 cts vs 40 cts
    Net 990,000 vs 849,000
    Sales 29.0 mln vs 22.8 mln
    Avg shrs 1,972,000 vs 2,118,000
    NOTE: Share adjusted for five-for-four stock split declared
today.


.I 11043
.C
earn
.W
MORTGAGE GROWTH INVESTORS <MTG> 1ST QTR FEB 28.
    BOSTON, March 17 -
    Shr 36 cts vs 37 cts
    Net 2,751,000 vs 2,179,000
    Qtly div 40 cts vs 40 cts prior
    Avg shrs 7,699,241 vs 5,943,341
    NOTE: Dividend payable April 10 to shareholders of record
March 30.


.I 11047
.C
earn
.W
SHONEY'S INC <SHON> 1ST QTR FEB 15 NET.
    NASHVILLE, Tenn., March 17 -
    Shr 31 cts vs 27 cts
    Net 11.4 mln vs 9,905,528
    Revs 194.3 mln vs 171.7 mln
    Avg shrs 36.6 mln vs 36.4 mln
    NOTE: Sixteen-week periods.


.I 11048
.C
acq
.W
FORTUNE SAVINGS TO BUY FINANCIAL <FSSL> BRANCH.
    SUNRISE, Fla., March 17 - <Fortune Savings Bank> said it
agreed to buy the deposits and assume the leasehold of a
Financial Security Savings and Loan Association <FSSL> branch
here.
    Terms of the agreement were not disclosed.
    Fortune said the agreement is subject to regulatory
approval. It also said that if the transaction is approved,
Financial would generate a profit on the sale.


.I 11050
.C
money-fx
.W
GULF ARAB MINISTERS DISCUSS ECONOMIC COOPERATION.
    ABU DHABI, March 17 - Finance and economy ministers of the
Gulf Cooperation Council (GCC) opened a two- day meeting to
discuss further economic integration, officials said.
    They said issues to be discussed by the ministers from
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab
Emirates (UAE) would include a recommendation by central bank
governors on a common currency exchange rate.
    The governors agreed in January on a denominator on which
to base currencies of the six states. Any decision will be
forwarded for final approval to a GCC summit meeting due in
Saudi Arabia late this year.
    The six states have different currency systems. Saudi
Arabia, Bahrain, Qatar and the UAE are linked in theory to the
International Monetary Fund's basket of currencies -- the
special drawing right (SDR) -- but in practice to the dollar.
    Oman links its currency formally to the dollar, while
Kuwait pegs its dinar to a trade-weighted basket devised by
itself.
    The denominator chosen by central bank governors has not
been disclosed, but some bankers expect the currencies to be
linked to the SDR or a trade-weighted basket.
    Opening the meeting, Ahmed al-Tayer, the UAE's Minister of
State for Finance and Industry, said implementation of joint
economic agreements "is increasingly linking the interests of
GCC citizens together."
    The general assembly of the Gulf Investment Corporation met
in Abu Dhabi earlier under the chairmanship of Bahrain's
Finance and National Economy Minister, Ibrahim Abdul-Karim
    The corporation was formed to contribute to joint economic
and investment projects in the GCC.
    Officials said the corporation's assets rose to 1.31
billion dollars last year from 1.04 billion at the end of 1985.


.I 11051
.C
earn
.W
PHOTOGRAPHIC SCIENCIES CORP <PSCX> 4TH QTR LOSS.
    ROCHESTER, N.Y., March 17 -
    Oper shr loss six cts vs profit four cts
    Oper net loss 165,000 vs profit 83,000
    Sales 2,413,000 vs 921,000
    Avg shrs 2,908,770 vs 2,203,462
    Year
    Ope shr profit five cts vs profit five cts
    Oper net profit 124,000 vs profit 106,000
    Sales 5,652,000 vs 1,623,000
    Avg shrs 2,369,949 vs 2,061,102
    NOTE: Net excludes losses from discontinued operations of
548,000 dlrs vs 14,000 dlrs in quarter and 696,000 dlrs vs
21,000 dlrs in year.
    1985 year net excludes 35,000 dlr tax credit.
    1985 year includes only six months of operations due to
change in fiscal year.


.I 11055
.C
grain;corn;
.W
SOUTH AFRICA CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, March 17 - Dry weather pushed further into
South Africa's Orange Free State's Maize Triangle in the week
ended March 14, the Joint Agricultural Weather Facility of the
U.S. Agriculture and Commerce Departments said.
    In a summary of its Weather and Crop Bulletin, the agency
said scattered showers continued throughout Transvaal, but dry
pockets persisted in the northeast and south.
    Temperatures average one to four degrees C above normal
throughout all grain areas, stressing grain-filling corn in
areas receiving lightest rainfall, it said.
    The agency said rainfall during February was near to above
normal in most areas, but earlier periods of hot, dry weather
reduced yield prospects in parts of the northern Transvaal and
southern Orange Free State.


.I 11059
.C
earn
.W
PUEBLO INTERNATIONAL INC <PII> 4TH QTR JAN 31.
    NEW YORK, March 17 -
    Shr 56 cts vs 46 cts
    Net 2,005,000 vs 1,685,000
    Sales 189.8 mln vs 156.0 mln
    Avg shrs 3,603,000 vs 3,614,000
    Year
    Shr 1.88 dlrs vs 1.77 dlrs
    Net 6,774,000 vs 6,587,000
    Sales 692.1 mln vs 596.8 mln
    Avg shrs 3,604,000 vs 3,713,000
    NOTE: Net includes tax credits of 250,000 dlrs vs 162,000
dlrs in quarter and 610,000 dlrs vs 1,288,000 dlrs in year.
    Thirteen vs 12 and 53 vs 52-week periods.
    Latest year net includes gain 418,000 dlrs for first nine
months from change in pension accounting, for which results of
first three periods restated.


.I 11060
.C
earn
.W
HRE PROPERTIES <HRE> 1ST QTR JAN 31 NET.
    NEW YORK, March 17 -
    Shr 38 cts vs 47 cts
    Net 2,253,664 vs 2,806,820
    Gross income 5,173,318 vs 5,873,904
    NOTE: Net includes gains on sale of real estate of 126,117
dlrs vs 29,812 dlrs.


.I 11062
.C
earn
.W
PHOTOGRAPHIC SCIENCES CORP <PSCX> 4TH QTR.
    ROCHESTER, MARCH 17 -
    Shr loss 25 cts vs profit three cts
    Net loss 713,000 vs profit 69,000
    Revs 2.4 mln vs 921,000
    Six months
    Shr loss 24 cts vs profit six cts
    Net loss 572,000 vs profit 120,000
    Revs 5.7 mln vs 1.6 mln
    NOTE:To effect change from fiscal to calendar year, company
reported results for six months period ended December 31, 1985.
1985 six months includes one time gain of 35,000 dlrs. 


.I 11066
.C
wheat;grain;rice;
.W
WORLD CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, March 17 - Dry weather covered most European
crop areas in the week ended March 14, except for those in
southwestern France, southern Italy, and Greece, the Joint
Agricultural Weather Facility of the U.S. Agriculture and
Commerce Departments said.
    In its International Weather and Crop sumary, the agency
said mixed rain and snow covered Greece.
    Winter grains in England, France, and northern Italy
remained dormant. Grains usuaually break dormancy in March.
    Winter grains in Eastern Europe usually break dormancy in
early April, it said.
    Showers improved irrigation supplies in winter wheat areas
of northern Pakistan and northern India, it said.
    Normally, wheat harvesting is well underwaty in central
India and just beginnning to the north, ending in most areas by
late April.
    Showers improved irrigation supplies in southern India,
reversing February's below-normal trend.
    Summer rice is usually in or nearing reproduction in most
southern areas, it said.
    In the Philippines, most rainfall was restricted to the
central islands, continuing February's drying trend in Luzon
and southern Mindanao.
    Locally heavy showers dotted Indonesia and Malaysia as
rainfall generally decreased eastward through the islands.
    In February locally heavy showers may have caused flooding
in Java, it said.
    The second cnsecutive week of dry weather stressed Moroccan
winter grains, approaching teh heading stage, the agency said.
    Light to moderate rain spread from northern Thailand to
Northern Vietnam as dry weather prevailed elsewhere in
Southeast Asia.
    Dry weather covered winter grain areas in western and
central Algeria, but soil moisture was likely adequate to meet
crop demands, it said.
    Light showers in eastern Algeria and Tunisia maintained
adequate moisture for crop growth, it said.
    Timely rains will be needed in the next several weeks as
winter grains advance through the critical reproductive phase,
the agency said.


.I 11067
.C
earn
.W
FEDERAL PAPER BOARD CO <FBT> SETS PAYOUT.
    MONTVALE, N.J., March 17 -
    Qtly div 17-1/4 cts vs 17-1/4 cts prior
    Pay April 15
    Record March 31   


.I 11068
.C
earn
.W
SHONEY'S INC <SHON> SETS PAYOUT.
    NASHVILLE, Tenn., March 17 -
    Qtly div four cts vs four cts prior
    Pay April 22
    Record April Three


.I 11069
.C
interest;bop;money-supply;
.W
ANALYSTS SAY U.K. BUDGET POINTS TO BASE RATE CUTS.
    By Simon Cox, Reuters
    LONDON, March 17 - Chancellor of the Exchequer Nigel
Lawson's Budget speech was described as sound and well balanced
by analysts, if slightly lacking in excitement.
    A cut in bank base lending rates is now widely expected
tomorrow, with most forecasts predicting a half-point fall. A
follow-up half-point cut is anticipated next week.
    "Worthy but boring would probably sum it up," Peter Fellner,
U.K. Economist at stockbrokers James Capel and Co, said. "It was
a very, very prudent fiscal budget."
    Richard Jeffrey of brokers Hoare Govett said it was a
well-balanced budget within the confines of the government's
philosophy of keeping expenditure levels flat.
    Most analysts said the Budget was very sound on the fiscal
side, but offered nothing new on monetary policy.
    As was widely expected, Lawson split his "fiscal adjustment"
between trimming the 1987/88 PSBR target to 4.0 billion stg
from 7.1 billion and cutting basic rate income tax from 29 to
27 pct.
    The target for the narrow measure of money supply, M0, was
kept unchangd at two to six pct, while the target for the broad
Sterling M3 aggregate was dropped.
    Both Jeffrey and Fellner said the budget clears the way for
a half-point fall in U.K. Base rates tomorrow, but the
authorities are unlikely to sanction a larger cut immediately.
Many analysts and currency dealers have forecast a full
one-point cut tomorrow.
    "The Bank of England will be loathe to take any action which
it will have to reverse later," Jeffrey said, though he added a
further half-point cut was quite possible in the near future.
    The main worry from today's speech is the outlook for
inflation, given the signs of relaxed monetary policy contained
in it, Scrimgeour Vickers economist Richard Holt said.
    Holt noted the "rather loose" inflation forecast of 4.0 pct
at end-1987, and said the lower interest rates likely to result
from the tough fiscal stance could cause longer term concern.
    "A higher PSBR target could be preferable in the long term,"
he said, although lower mortgage interest rates on the back of
falling base rates would have an offsetting impact on
inflation.
    The Budget will inspire a lot of short-term confidence but
it was "not a good budget for inflation," he said
    Jeffrey said he would have liked Lawson to say more about
the dangers of excessive liquidity build-up but overall was not
too concerned about a revival of inflation.
    Fellner noted that the exchange rate was to remain the
"leading edge" of monetary policy, but said the authorities were
likely to be extremely cautious on this front.
    He said they were unlikely to hesitate in holding interest
rates steady or even raising them again if sterling showed any
signs of excessive weakness.
    Most analysts agreed Lawson had bolstered the credibility
of the Budget by adopting realistic forecasts.
    Raising the forecast for the current account deficit from
1.5 to 2.5 billion stg for 1987 would not unsettle the markets,
which are already discounting that amount, Jeffrey said.
that the 4.0 billion stg PSBR target was given credibility by
the favourable outturn for 1986/87, which is now also forecast
to be 4.0 billion stg.
    But analysts said the Budget speech did not give any
clear-cut indication about the timing of the general election,
which has to be held before June, 1988.
    Some believe it signals a poll this June, noting that the
benefits, such as income tax cuts and the decision not to raise
duties on alcohol and tobacco, become available immediately.
    But others said it kept several options open and it was not
possible to deduce too much from it.
    James Capel's Fellner noted that by being fiscally prudent,
Lawson had kept open the possibility of an autumn election in
that there would be no "chickens coming home to roost."
    Richard Jeffrey, who favours the likelihood of a June
election, said it was important the Chancellor had not gone for
a Budget aimed overtly at buying an election victory.
    Nevertheless, he said, it was likely to result in a boost
to the Conservative Party's pre-election popularity.


.I 11070
.C
acq
.W
TAFT <TFB> STOCK RISES ON PROPOSAL.
    By Patti Domm
    New York, March 17 - Taft Broadcasting Co stock rose almost
three points today as its vice chairman and an investment group
proposed to sweeten a takeover offer for the company.
    However, several arbitragers said they would shy away from
the stock at its current price levels since it is unclear how
high bidding for the company would go and whether the company
would agree to a takeover.
    "There are too many uncertainties," said one arbitrager.
    Taft stock rose 2-7/8 to 155-3/4.
    Dudley Taft, Taft vice chairman, and Narragansett Capital
Inc said they sent a letter to the Taft board, stating they
were committed to pursuing acquisition of the broadcast company
and were prepared to negotiate a transaction in excess of 150
dlrs per share.
    The company responded that the proposal would be submitted
to the board of directors, but that no decisions have yet been
made on a sale of the company.
    "Someone's betting this company will go for 170 (dlrs per
share)," said one arbitrager.
    Arbitragers said the stock is a risky buy at current
levels, unless an offer was accepted in the 170 dlr per share
range. They said to make an arbitrage investment at this level
would be chancy since it will take a long time for any
transaction to be completed because of regulatory approvals
necessary for the broadcast properites.
    Taft earlier rejected a 145 dlr per share or 1.35 billion
dlr bid from the investment group. The company said it rejected
the bid as inadequate based on advice of Goldman, Sachs and Co,
its financial adviser. It said it would consider alternatives
such as restructuring.
    Arbitragers speculated a bidding war may erupt for Taft,
which has two large shareholders in an investment group led by
Robert Bass and Carl Lindner, chairman of American Financial
Corp. The Bass group holds 25 pct of Taft and Lindner holds
16.2 pct. The Taft family, which founded the company almost 50
years ago, has about 12 pct.
    Lindner last week told the Securities and Exchange
Commission he may be interested in making a bid for Taft.
    "I could see if things got really crazy that it might go
for 175 (dlrs per share)," said one arbitrager, but he
speculated it probably would not even be taken over for more
than a price in the 160s.
    Another speculated that Lindner might bid, but he
speculated the investor would not really be interested in
running the company. Lindner was unavailable for comment.
    Dennis McAlpine, an analyst with Oppenheimer and Co, said
he had speculated the company might be considering a leveraged
buyout.
    "Ideally, you'd have to break this thing up to satisfy all
the interests involved," he said, adding the two largest
shareholders might be interested in pieces of Taft.
    He said the highest takeover price he calculated for the
company has been about 140 dlrs per share, but that the highest
estimates on Wall Street have been about 160. He said the
latter would be based on more optimistic expectations for the
broadcast industry.


.I 11071
.C
jobs;ipi;
.W
BANK OF FRANCE SEES CONTINUED INDUSTRIAL PICKUP.
    PARIS, March 17 - The Bank of France expects a continued
revival in short-term industrial activity, but the outlook for
any improvement in France's record 10.9 pct unemployment rate
remains bleak, the Bank of France said in its monthly review.
    The upturn in activity in all industrial sectors except the
agro-food sector in February more than compensated for the fall
in January, while construction and civil engineering
experienced a recovery which appears likely to extend over the
next few months.
    Internal demand rose and the export situation improved, in
particular toward the European Community (EC), the Bank said.
    Stocks decreases and order book levels, with the exception
of the agro-food industry, improved substantially.
    In addition, retail prices and salaries stabilised last
months.
    Production rose in all sectors except agricultural
machinery and aeronautics, where it stabilised, and ship
construction, where it declined.
    The car industry was the major beneficiary of the upturn in
activity in February, with both domestic and export orders
rising.
    In the consumer goods sector, actitity rose sharply despite
a fall in the household goods sector and stability in
pharmaceuticals.
    Among semi-finished products, output rose sharply, helped
by a strong growth in construction materials.
    But activity in the retail sector declined slightly over
the past two months.


.I 11072
.C
crude
.W
******HERRINGTON SAYS HE MAY RECOMMEND TAX BENEFITS FOR U.S. OIL INDUSTRY.
Blah blah blah.

.I 11076
.C
crude
.W
HERRINGTON SAYS HE MAY CALL FOR OIL TAX BENEFITS.
    WASHINGTON, March 17 - Energy Secretary John Herrington
said he may recommend to the White House that the domestic oil
industry be given tax benefits to help it produce more oil and
head off increasing U.S. dependence on foreign oil.
    He said also at a news conference that he would recommend
to the White House that the fill rate of the Strategic
Petroleum Reserve be increased from its planned 35,000 barrels
per day.
    The oil reserve fill rate capacity is 100,000 barrels a
day.
    Herrington said he had always advocated a greater fill rate
for the petroleum reserve, but the rate had been kept down
because of budgetary constraints.
    Herrington did not disclose what tax incentives he might
advocate, but U.S. officials have shown interest in tax
benefits for oil and gas exploration and for research and
development into new ways to extract oil which is now
considered uneconomical to produce.
    He made the remarks in conjunction with the release of the
Energy Department's study on oil's impact on national security.
    Herrington said that before he disclosed what
recommendations for tax benefits for the oil and gas industry
he might make, he would raise the matter with the White House
Economic Policy Committee to see if the proposals to increase
oil production made good tax policy.
    He said he would like to increase U.S. production by one
mln barrels a day.
    The report said that by the end of the century the United
States may be relying on foreign sources for 50 pct of its oil
consumption, posing a serious economic and national security
threat.


.I 11078
.C
earn
.W
CONSOLIDATED STORES CORP <CNS> 4TH QTR JAN 31 NET.
    COLUMBUS, Ohio, March 17 -
    Shr 17 cts vs 13 cts
    Net 7,602,000 vs 4,879,000
    Sales 141.5 mln vs 71.3 mln
    Avg shrs 45.0 mln vs 42.2 mln
    Year
    Shr 45 cts vs 32 cts
    Net 19.5 mln vs 12.0 mln
    Sales 397.2 mln vs 181.1 mln
    Avg shrs 43.4 mln vs 38.2 mln
    NOTE: Prior year net includes 2,600,000 dlr tax credit.
    Share adjusted for two-for-one stock split in June 1986.


.I 11079
.C
crude
.W
WAINCO OIL <WOL> COMPLETES WILDCAT WELL.
    HOUSTON, March 17 - Wainco Oil Corp said it has completed a
wildcat well on its GrandMarais prspect in Jefferson Davis
Parish, La., which is currently producing at a rate of 1.1 mln
cubic feet of gas and 40 barrels of condensate daily.
    The company said it has a 20 pct working interest in the
well which is flowing from Lower Frion Tweedel Sand
perforations between 10,104 and 10,110 feet. Additional
untested but possibly productive zones exist behind the pipe,
it added. It said the remaining owners are privately held
petroleum companies.


.I 11082
.C
crude
.W
U.S. WARNS OF DEPENDENCE ON FOREIGN OIL.
    WASHINGTON, March 17 - A White House-ordered report said 
that growing U.S. reliance on foreign oil into the year 2000
could have potentially damaging implications for national
security.
    The Energy Department study discusses several options to
curb reliance on foreign oil, but makes no recommendations.
    President Reagan and most Congressmen have previously ruled
out a tax on foreign oil as a way to curb imports and to help
the depressed domestic oil industry.
    Energy Secretary John Herrington said in a statement that
"although we have made gains in energy security in the last six
years, this report shows that there is justification for
national concern both over declining competitiveness of our
domestic oil and gas industry and over rising oil imports."
    The report said imports last year were 33 pct of U.S.
consumption and by the mid-1990s could rise to 50 pct.
    Among the report's options to ease U.S. reliance on foreign
oil are several already advocated by the Reagan Administration.
    President Reagan ordered the study last September, citing a
determination that the country never again become captive to a
foreign oil cartel, referring to the OPEC-led oil shortages and
sharp prices increases of the 1970s.
    The report said an import fee would raise prices and help
make it economical for U.S. oil firms to find and produce new
oil, as well as to cut imports, but on the whole the tax would
depress the nation's economy.
    The study was outlined in a New York Times report today.


.I 11085
.C
earn
.W
HOSPITAL STAFFING SERVICES INC <HSSI> 1ST QTR.
    FORT LAUDERDALE, Fla., March 17 - Feb 28
    Oper shr six cts vs two cts
    Oper net 189,683 vs 47,499
    Revs 2,874,930 vs 2,594,574
    NOTE: Prior year net excludes 33,000 dlr tax credit.


.I 11086
.C
earn
.W
VIATECH INC <VTK> YEAR NET.
    SYOSSET, N.Y., March 17 -
    Shr 1.53 dlrs vs 18 cts
    Net 841,893 vs 95,477
    Revs 50.3 mln vs 35.1 mln
                                   


.I 11088
.C
earn
.W
INTERACTIVE TECHNOLOGIES INC <ITXI> 1ST QTR NET.
    NORTH ST. PAUL, MINN., March 17 -
    Shr nine cts vs eight cts
    Net 373,000 vs 269,000
    Sales 3,501,000 vs 2,507,000
    Avg shrs 4,036,000 vs 3,326,000
    NOTE: Periods end January 31, 1987 and 1986, respectively.


.I 11089
.C
interest
.W
******U.S. FHL BANKS SETS 6.70 PCT, 7.10 PCT, 7.65 PCT RATES ON 2.55 BILLION DLR OFFER.
Blah blah blah.

.I 11090
.C
crude
.W
OPEC WANTS 18 DLR OIL PRICE - OAPEC OFFICIAL.
    BRUSSELS, March 17 - OPEC believes world oil prices should
be set around a fixed average price of 18 dlrs a barrel, OAPEC
Assistant General Secretary Abdelaziz Al-Wattari said today.
    In a speech to a European Community (EC)/OAPEC/OPEC seminar
in Luxembourg released here, Al-Wattari said: "OPEC believes
...The world energy trade should be kept without restrictions
and should be built around a fixed average price of 18 dlrs."
    But he warned that defense of the 18 dlr a barrel level had
caused hardship for OPEC countries, who had been forced to
curtail production, and he warned that such cutbacks by OPEC
states could not be sustained in some cases.
    "For OPEC to stabilize the world oil price at what is now
considered the optimal level of 18 dlrs a barrel, its member
countries have had to undergo severe hardship in curtailing
production," Al-Wattari said.
    "Such cutbacks ... Cannot, in certain cases, be sustained,"
Al-Wattari said. As well as financial and marketing pressures,
some states depended on associated gas output for domestic use
and oil cutbacks had left insufficient gas supplies, he added.
    Al-Wattari noted that total OPEC output was below the
organization's agreed ceiling for all member countries in
February, although this had meant sacrifices.
    The effect of these sacrifices meant that market stability,
though restored to a good level, was still under pressure,
Al-Wattari said. "A lasting stability in the world market
requires a wider scope of international cooperation," he added.
    He said some non-OPEC oil producing countries had shown a
political willingness after 1986 to cooperate with OPEC.
    But although cutbacks announced by these states were
politically significant and welcomed by OPEC, they were
insufficient in terms of volume, he added. "The overall majority
of non-OPEC producers have not responded sufficiently to OPEC's
calls for supply regulation," he said.
    Al-Wattari said an 18 dlr a barrel price was optimal as it
allowed investment in the oil industry outside OPEC to
continue, while not generating excessive cash flow for
otherwise unviable high-cost areas outside OPEC. Such a price
would no longer encourage protectionist measures, he added.
    Fadhil Al-Chalabi, OPEC Deputy Secretary General, also
addressing the seminar, added that discipline was still needed
to prevent violent fluctuations in the oil market.
    Cooperation between Arab states and Europe was advantageous
for both sides, Al-Chalabi said, adding he hoped cooperation
would ultimately lead to full-fledged Euro-Arab dialogue.


.I 11091
.C
interest
.W
U.S. FHL BANKS SETS RATES ON DEBT OFFERING.
    WASHINGTON, March 24 - The Office of Finance, Federal Home
Loan Banks, said it set rates on today's debt offering of 6.70
pct on its 1.11 billion dlr issue, 7.10 pct on a 1.065 billion
dlr issue and 7.65 pct on a 375 mln dlr issue.
    It said the issues, which are for settlement March 25, 
mature March 26, 1990, March 25, 1992 and March 25, 1997,
respectively.
    The office said telephone confirmation of allotments must
be received by 1500 hrs EST today and that secondary trading
will begin at 0930 hrs EST tomorrow.


.I 11092
.C
earn
.W
SANTA ANITA COS <SAR> 4TH QTR NET.
    LOS ANGELES, March 17 -
    Oper shr 45 cts vs 63 cts
    Oper net 3,805,000 vs 5,155,000
    Revs 12.0 mln vs 10.6 mln
    Year
    Oper shr 1.58 dlrs vs 2.07 dlrs
    Oper net 12,991,000 vs 15,692,000
    Revs 69.8 mln vs 71.7 mln
    Avg shrs 8,265,541 vs 7,598,522
    Note: Current qtr and year figures exclude losses from
discontinued operations of 761,000 dlrs and 875,000 dlrs,
respectively and disposition gain of 6.1 mln dlrs in both
periods.
    Prior qtr and year figures exclude gain from discontinued
operation of 31,000 dlrs and loss of 2,000 dlrs, respectively.



.I 11093
.C
acq
.W
MIDWAY AIRLINES <MDWY> SETS HOLDER RIGHTS PLAN.
    CHICAGO, March 17 - Midway Airlines Inc, which has
frequently been mentioned as an acquisition target, said it
declared a shareholder rights plan.
    Holders will get a dividend of one preferred share purchase
right on each outstanding share of common stock.
    Each right, when exercisable, will entitle the holder to
purchase one one-hundredth share of Series C Junior
Participating preferred stock for 50 dlrs.
    The rights are intended to assure that all holders receive
fair treatment in the event of a takeover. The company said
this is not in response to a known effort to acquire control.
    The rights will be exercisable 10 days after a person or
group buys 20 pct of the company's common, or announces or
commences a tender offer that would result in acquisition of 30
pct or more of its common.
    Midway can redeem the rights at two cts each at any time
prior to expieration of 10 days after the acquisition by any
person of 20 pct or more of the companyt's common, it said.
    If Midway is acquired, each right will entitle its hodler
to purchase a number of the acquiring company's common shares
having a market value at that time of twice the right's
exercise price.
    The dividend will be payable to holders of record April
six, and expire 10 years later on April 6, 1997.


.I 11094
.C
earn
.W
EQUION CORP <EQUI> 2ND QTR JAN 31 NET.
    HARRODSBURG, Ky., March 17 - 
    Oper shr 19 cts vs 18 cts
    Oper net 951,902 vs 987,860
    Revs 19.0 mln vs 17.1 mln
    Six mths
    Oper shr 26 cts vs 35 cts
    Oper net 1,332,273 vs 2,502,868
    Revs 33.6 mln vs 29.2 mln
    Note: Oper net excludes tax credits of 897,925 dlrs vs
841,511,dlrs for qtr and 1,306,860 dlrs vs 2,132,073 dlrs for
six mths.
    Note: Year-ago results restated to reflect change in
accounting principle effective August one, 1985.


.I 11097
.C
crude
.W
VENEZUELA-ECUADOR OIL LOAN UNDER DISCUSSION.
    CARACAS, March 17 - Venezuela has still to work out final
details of its plan to supply Ecuador with 50,000 barrels per
day of crude oil to compensate that country for lost exports
caused by earthquake damage, a senior Petroleos de Venezuela
(PDVSA) official said.
    "We have yet to finalize details on how the compensation
will be carried out and how OPEC production quotas will be
affected," he said during the signing of a joint venture deal
with Union Pacific Corp today.
    He said an agreement was initialled on a visit last week by
Ecuador's deputy energy minister Fernando Santos Alvite.
    He pointed out that there are some contractual points to be
considered. Venezuela, possibly unique among oil exporters,
requires its clients to sign final destination clauses to
ensure its oil is not resold on the spot market.
    Ecuador's oil minister Javier Espinosa was quoted today as
saying Venezuela will export the oil on Ecuador's account and
remit the revenues to Quito. Ecuador would pay back the oil at
a rate of 35,000 bpd.
    He said Venezuela's oil would be traded through Ecuadorean
state oil company Cepe, but the PDVSA official said the company
never allows third parties to trade its oil.


.I 11098
.C
earn
.W
<TEMCO SERVICE INDUSTRIES INC> 1ST QTR DEC 31.
    NEW YORK, March 17 -
    Shr 31 cts vs 21 cts
    Net 182,839 vs 132,804
    Revs 25.0 mln vs 19.4 mln


.I 11099
.C
earn
.W
<GREAT PACIFIC INDUSTRIES INC> YEAR NET.
    Vancouver, British Columbia, March 17 -
    Shr 1.93 dlrs vs 2.21 dlrs
    Net 8,371,000 vs 9,576,000
    Revs 18.3 mln vs 15.7 mln


.I 11100
.C
earn
.W
SIMMONS AIRLINES INC <SIMM> 2ND QTR LOSS.
    CHICAGO, March 17 - Period end Jan 31
    Shr loss 17 cts vs loss 26 cts
    Net loss 765,808 vs loss 1,216,501
    Revs 15.8 mln vs 18.7 mln
    Six mths
    Shr nil vs profit 54 cts
    Net loss 12.5 mln vs profit 2,538,030
    Revs 32.5 mln vs 42.6 mln
    Avg shrs 4,310,068 vs 4,712,315
    NOTE: Prior yr results restated to reflect change in value
of aircraft, resulting in increase of 232,000 or five cts shr
for six mths


.I 11101
.C
earn
.W
CORRECTION - SIMMONS AIRLINES INC <SIMM> LOSS.
    In CHICAGO item headlined Simmons Airlines Inc <SIMM> 2nd
qtr loss, please reverse qtrs for which figures are reported.


.I 11102
.C
acq
.W
<TEMCO SERVICE INDUSTRIES INC> MERGER ENDED.
    NEW YORK, March 17 - Temco Service Industries Inc said its
proposed buyout by chairman Herman J. Hellman and president
Harvey Newwman has been terminated by mutual consent, and Temco
has no present intention of being acquired by any other party.


.I 11103
.C
alum
.W
SURALCO ALUMINA EXPORTS DROPPED 75 PCT IN FEB.
    PARAMARIBO, March 17 - The Surinam Aluminum Company
(SURALCO) registered a 75 pct drop in alumina exports in
February after its operations were shut down by worker violence
and guerrilla sabotage, the official Surinam News Agency, SNA,
reported.
    SNA said Suralco's alumina exports dropped to 23,869 tonnes
in February from 92,852 tonnes in January. Aluminum exports,
meanwhile, decreased nine pct in the same period, to 1,511
tonnes from 1,647 tonnes.
    Suralco's alumina refinery at Paranam, 18 miles south of
the capital, was shut down February 2 after workers destroyed
plant and computer equipment in a protest over layoffs at the
company's nearby aluminum smelter.
    The smelter was shut down January 26 after anti-government
guerrillas dynamited two electricity towers which transmit
power to the plant from the Afobaka dam.
    The alumina refinery, owned jointly by Suralco and Billiton
NV, a Royal Dutch Shell subsidiary, was reopened March 9. But
the smelter remains closed, as do the Suralco mines at Moengo,
60 miles east of Paramaribo, which were closed down by
guerrillas last November.


.I 11111
.C
interest;gnp;housing;
.W
U.S. HOUSING DATA FAIL TO CLARIFY ECONOMIC PATH.
    By Claire Miller, Reuters
    NEW YORK, March 17 - Surprisingly strong U.S. housing
statistics for February cannot be taken as an indication that
the economy is generating any momentum and are not sufficient
cause to start lifting forecasts for first quarter growth,
economists said.
    Building was boosted by two factors last month, unusually
mild weather and low mortgage rates. But economists said that
seasonal factors make it hard to assess what spur to the
economy, if any, will come from housing in coming months. And
after a steady retreat, mortgage rates seem to be near bottom.
    U.S. housing starts rose 2.6 pct in February to a
seasonally adjusted annual rate of 1.851 mln units from 1.804
mln in January. It was the highest pace for starts since April
1986.
    The rate at which permits were issued for future building
climbed 4.4 pct to a seasonally adjusted annual rate of 1.764
mln units after dropping 11.52 pct to 1.690 mln in January.
    "February's weather is usually more adverse for home
building. Because of seasonal factors it's difficult to
determine what this means for the economy down the road," said
Allan Leslie of Discount Corp.
    The housing report is seasonally-weighted to compensate for
weather-related setbacks. As a result, milder temperatures
inflate the statistics.
    Economists said that low mortgage rates also were a spur to
building last month. But several believe that rates will now
consolidate before edging up in late spring/early summer.
    "Builders are looking at current mortgage rates and saying
'Let's do it now'," said Mark Obrinsky of the U.S. League of
Savings Institutions in Washington, whose members supply much
of the financing for home building.
    But Obrinsky doubts that there is much more downward
potential for rates because he foresees higher inflation and 
some overall improvement in the U.S. economy.
    He expects rates to gain 50 to 100 basis points in early
summer from the 9.50 pct fixed rate effective in February. Last
November, fixed rate mortgages were about 10.30 pct.
    As expected, the strength in housing was concentrated in
the single-family sector. The multi-family area -- which
typically represents rental units -- remained weak due to high
vacancy rates and increased capital costs of such units
following tax law changes effective January 1.
    Single-family starts rose at a 5.6 pct annual pace to 1.317
mln units. Multi-family fell 4.1 pct to a 534,000 rate.
    "Strength in the single-family sector indicates that low
mortgage rates are doing their job. But we're probably not
looking at a great deal of growth potential," said Ward
McCarthy of Merrill Lynch Capital Markets.
    McCarthy noted that the housing report, together with
larger than expected gains in U.S. employment, industrial
output and retail sales in February, may cause some observers
to start waving "four pct GNP banners" for the first quarter.
Gross national product grew 1.3 pct in the fourth quarter.
    But McCarthy, who still expects first quarter real GNP to
come in at an annual rate of 2.5 pct or slightly above, is not
convinced that growth will pick up in future.
    "The big story is the inventory re-building that's going on
now, not all of which is intentional," he said. For example,
U.S. automakers, who are already saddled with high stocks,
produced at an annual rate of 8.3 mln units in February
compared with domestic car sales of 7.3 mln.
    Thus while inventories could contribute to GNP in the first
quarter, they may result in scaled-back production and weaker
growth in the second, he said.
    "If most of the first quarter growth is inventory building
and we cannot identify any improvement in export demand, then
there is the potential for softness in the second quarter,"
agreed Allan Leslie of Discount Corp. He is still evaluating
first quarter GNP prospects.
    Federal Reserve chairman Paul Volcker said last week that
current data do not show the worsening in trade has reversed.
    "At the same time that we are pumping up inventories in the
first quarter, we could foresee production slowing in the
second," cautioned Joe Plocek of McCarthy, Crisanti and Maffei
Inc, who expects first quarter growth of about three pct.


.I 11112
.C
earn
.W
PUBLIC SERVICE ENTERPRISE <PEG> TWO MTHS NET.
    NEWARK, N.J., March 17 - Periods ended February 28
    Shr 89 cts vs 87 cts
    Net 119.5 mln vs 114.6 mln
    Revs 872.3 mln vs 917.4 mln
    Avg shrs 134.9 mln vs 131.7 mln
    12 mths
    Shr 2.87 dlrs vs 3.32 dlrs
    Net 383.4 mln vs 413.5 mln
    Revs 4.5 billion vs 4.4 billion
    Avg shrs 133.7 mln vs 124.7 mln
    NOTES: Year ago results restated to reflect application of
new accounting for disallowances
    Full name is Public Service Enterprise Group Inc


.I 11113
.C
acq
.W
PENTRON CORP <PEN> UNIT TO BUY ICE CREATIONS.
    WALNUT CREEK, Calif., March 17 - Pentron Corp said its
Rotational Molding Inc unit has purchased privately held Ice
Creations Unlimited for an undisclosed amount of cash and other
considerations.
    The company said Ice Creations had sales of 1.2 mln dlrs in
the year ended May 31, 1986.
    Ice creations is a molder of plastics.


.I 11115
.C
crude
.W
U.K. OIL REVENUE FORECAST TO FALL IN 1987/88.
    LONDON, March 17 - The U.K. Government forecasts that oil
revenues will fall to four billion stg in the fiscal year
1987/88, from 4.75 billion in 1986/87 and 11.5 billion in
1985/86.
    The forecast came in the Treasury's Financial Statement and
Budget Report issued after the Chancellor of the Exchequer
Nigel Lawson's annual budget statement to parliament.
    The government is assuming the price of oil will average 15
dlrs a barrel, in line with its earlier forecasts, and its oil
revenue calculation is based on an exchange rate remaining
close to current levels, the Treasury document said.
    The Treasury said the 1987/88 oil revenue shortfall will
reflect the oil price fall of 1986, as North Sea corporation
tax is paid after a time lag.
    The statement calculated that a one dlr a barrel difference
in oil prices this year will change revenue by about 350 mln
stg for the current fiscal year, and 400 mln stg in a full
year.
    Oil production is forecast to fall slightly in 1987,
according to the statement. A change in one mln tonnes in
production would alter revenue by about 45 mln stg in 1987/88
and 50 mln stg in a full year, it added.
    Total general government receipts for 1986/87 are now
estimated to be 159.2 billion stg, 2.75 billion more than the
1986 Budget forecasts and above the Autumn Statement forecasts,
despite a shortfall of 1.25 billlion in oil receipts.
    Additional non-North Sea corporation tax of 1.75 billion
stg and VAT of 750 mln stg account for the bulk of the
overshoot.
    Total general government receipts were forecast to rise to
168.8 billion stg in fiscal 1987/88, and among the main items,
besides diminishing oil revenues, were projected income tax of
40 billion stg, up from 38.4 billion in the current year.
    Non-North Sea corporation tax is forecast to bring in 13.5
billion stg in 1987/88, after the revised 11.2 billion in
1986/87, and VAT revenue should amount to 23.3 billion,
compared with upwardly revised estimated 21.5 billion this
fiscal year.
    The general government expenditure for the coming fiscal
year is expected to total 173.5 billion stg, up from a revised
164.9 billion in the current year.
    A repayment of 800 mln on public corporations' market and
overseas borrowings is forecast to bring the total Public
Sector Borrowing Requirement down to 3.9 billion stg in
1987/88, from this year's revised 4.1 billion, the Treasury
said.


.I 11116
.C
earn
.W
REYNOLD METALS <RLM> UP ON FURMAN SELZ REPORT.
    NEW YORK, March 17 - Shares of Reynolds Metals Co rose
sharply after Wall Street firm Furman Selz Mager Dietz and
Birney issued a report focusing on the strong earnings
potential from the company's Australian gold holding, traders
familiar with the report said.
    Traders said the report notes that earnings from Australian
gold holdings could be worth about 35 cts to 55 cts a share
this year and 1.40 dlrs to two dlrs a share in 1988.
    Reynolds Metals rose three points to 59-5/8 on volume of
729,500 shares.
    Reynolds owns stakes in the Mount Gibson gold project and
the Boddington gold project, both located in Australia. An
analyst familiar with the two mines said "the properties,
together, have a potential value of 20 dlrs to 40 dlrs a share
for Reynolds."
    The analyst, who asked not to be identified, said the rise
in the stock today was likely the result of "U.S. investors
that were not completely cognizant of the size or the
importance of the (Reynolds') holdings in Australia."
    Traders said the Furman Selz report indicates that gold was
discovered mixed with bauxite in the Boddington mine.
Boddington is principally a bauxite mine.
    The traders said the report goes on to say that the profits
from the Boddington gold with substantially reduce the
production costs of the other metals mined at Boddington.
    Traders said Furman Selz also boosted its earnings
estimates, expecting Reynolds Metals to earn 4.10 dlr a share
in 1987 and eight dlrs a share in 1988.
    Last year, Reynolds reported net earnings of 8.18 dlrs a
share, which included 3.09 dlrs a share for adoption of new
accounting rules, 1.01 dlrs a share for tax loss carryforwards
and other extraordinary items.


.I 11118
.C
earn
.W
WESTERN FEDERAL SAVINGS BANK <WFPR> UPS PAYOUT.
    NEW YORK, March 17 -
    Qtly div 15 cts vs 12-1/2 cts prior
    Pay April 15
    Record March 31


.I 11121
.C
crude
.W
OPEC WANTS 18 DLR OIL PRICE - OAPEC OFFICIAL.
    BRUSSELS, March 17 - OPEC believes world oil prices should
be set around a fixed average price of 18 dlrs a barrel, OAPEC
Assistant General Secretary Abdelaziz Al-Wattari said.
    In a speech to a European Community/OAPEC/OPEC seminar in
Luxembourg released here, Al-Wattari said, "OPEC believes ...the
world energy trade should be kept without restrictions and
should be built around a fixed average price of 18 dlrs."
    Al-Wattari noted that total OPEC output was below the
organization's agreed ceiling for all member countries in
February, although this had meant sacrifices. The effect of
these sacrifices meant that market stability, though restored
to a good level, was still under pressure, Al-Wattari said.
    "A lasting stability in the world market requires a wider
scope of international cooperation," he said.


.I 11122
.C
wheat;grain;
.W
U.S. HOUSE APPROVES PILOT 0/92 DISASTER PROGRAM.
    WASHINGTON, March 17 - The House of Representatives
approved a bill to enable 1987 winter wheat and feedgrains
farmers hit by midwestern flooding last year to receive at
least 92 pct of their federal income support payments even if
they did not plant.
    The one-time pilot 0/92 program, designed to assist farmers
in Kansas, Oklahoma, Michigan and parts of Missouri, was passed
by a 304-100 vote and sent to the Senate.
    Although the bill includes a narrow version of the 0/92
provision endorsed by the Reagan administration, the U.S.
Agriculture Department withheld its support from the measure.
    USDA said the bill would discourage farmers from buying
crop insurance and fall short of the administration's proposed
broad-scale revision of farm programs.
    The bill would permit winter wheat producers prevented from
planting their 1987 crop last fall to receive 92 pct of the
deficiency payments they would have received.
    To be eligible, winter wheat farmers could not plant a
different crop on that land this spring, although they could
use the land for grazing or to plant hay.
    USDA estimated this provision would save 30 mln dlrs,
largely because of reduced crop forfeitures.
    The bill also would aid about 200 feedgrains producers
along the Missouri and Mississippi Rivers who were prevented
from planting crops this year because of residual damage from
last fall's flooding.
    In addition, the measure would require USDA to make full
payment to farmers eligible for emergency assistance approved
by Congress last fall.
    Currently, because claims have outstripped the 400 mln dlrs
in appropriated funds, USDA plans to offer farmers in the
region 74 cents for every dollar in disaster losses.
    The administration said it opposed the bill because, by
expanding the 400 mln dlrs in disaster relief, it would thwart
efforts to encourage farmers to buy crop insurance as an
alternative to federal disaster assistance.
    USDA also said the 0/92 provisions in the bill were
narrower than the administration's proposal to offer the option
to all major commodities and would produce insignificant
savings.
    USDA said the 0/92 option for 1987 winter wheat farmers
would produce a net savings of about 30 mln dlrs, while the
requirement to compensate fully disaster-struck farmers would
cost about 135 mln dlrs, which must be appropriated by
Congress. The feedgrains provision would cost about five mln
dlrs.
    USDA estimated the overall cost of the bill to be 111 mln
dlrs.
    In January the Senate approved a bill that would make 1987
winter wheat farmers eligible for disaster assistance payments.
    But the Senate bill would not offer the 0/92 option to
wheat and feedgrains producers or raise the 400-mln dlr ceiling
on the disaster assistance program.


.I 11124
.C
earn
.W
DIODES INC <DIO> 3RD QTR JAN 31 NET.
    CHATSWORTH, Calif., March 17 -
    Shr profit one cts vs profit four cts
    Net profit 27,490 vs 89,687
    Sales 2,899,189 vs 2,785,931
    Nine mths
    Shr loss four cts vs profit nine cts
    Net loss 78,038 vs profit 184,062
    Sales 8,785,918 vs 8,273,913


.I 11125
.C
acq
.W
******ALLEGHENY BEVERAGE SAYS GROUP INTERESTED IN ACQUIRING ITS SERVICE AMERICA CORP UNIT.
Blah blah blah.

.I 11126
.C
earn
.W
MONY REAL ESTATE INVESTORS <MYM> 3RD QTR FEB 28.
    NEW YORK, March 17 -
    Oper shr nine cts vs 128 cts
    Qtly div 18 cts vs 22 cts prior
    Oper net 951,000 vs 1,817,000
    Total income 5,010,000 vs 5,575,000
    Nine mths
    Oper shr 39 cts vs 59 cts
    Oper net 4,014,000 vs 5,936,000
    Total income 15.2 mln vs 16.7 mln
    NOTE: Current year net both periods includes 750,000 dslr
provision for possible losses.
    Net excludes gains from sale of investment of 1,461,000
dlrs vs 346,000 dlrs in quarter and in nine mths.
    Dividend pay April 15, record March 31.


.I 11127
.C
earn
.W
HILTON <HLT> SEES IMPROVED FIRST QUARTER PROFITS.
    NEW YORK, March 17 - Hilton Hotels Corp expects earnings
per share for first quarter fiscal 1987 to March 31 to be about
90 cts compared with 70 cts a year earlier, Hilton Hotels
division president Carl Mottek said.
    He told a news conference the company expected costs for
its first 10 all-suite hotels, announced today, to be about 150
mln dlrs. Initial financing would come from the company's cash
flow. Later, Hilton plans to use borrowings from traditional
sources, he added.
    Hilton, which hopes to build 50 all-suite hotels within
five years, may take in partners in the new venture, he added.


.I 11128
.C
earn
.W
H.J. HEINZ <HNZ> POISED FOR RECORD YEAR.
    CHICAGO, March 17 - H.J. Heinz Co is "within sight of our
22nd consecutive year of new records in financial growth" for
the fiscal year ending April 30, Chairman and Chief Executive
Officer Anthony O'Reilly told investment analysts.
    O'Reilly, who declined to make a specific projection, said
the food company is "stronger than at any time in its 118-year
history."
    Last week Heinz reported third-quarter earnings rose to 55
cts a share from 46 cts a share. Sales rose to 1.08 billion
dlrs from 1.01 billion dlrs a year earlier.
    O'Reilly said Heinz will concentrate on backing its big
brands, new products and services, new geography, internal
growth and acquisitions.
    He said Heinz Ketchup has its highest market share in
history, 55 pct. But in response to a question, the executive
said a volume falloff in the overall product category "is a
concern to us."
    O'Reilly said Weight Watchers continues to perform well and
will generate revenue in fiscal 1987 of approximately 940 mln
dlrs.
    O'Reilly told analysts Heinz is in active negotiations to
build a second plant in China, where it entered a joint venture
with the government in 1984, forming Heinz-UFE Ltd, which
produces dry baby food cereal.
    He said Heinz-Japan is "making a profit and generating its
first substantial dividends," and implementation of a new
partnership, Seoul-Heinz Ltd, is moving ahead with a new
manufacturing plant targeted for completion by June in Seoul,
South Korea.
    To increase its competitiveness, O'Reilly said Heinz
implemented a "lowest cost imaginable" program targeted at
manufacturing, sales and marketing and procurement.
    He said a modernization program is in effect at the
company's United Kingdom operations, where the labor force,
trimmed to 4,000 from 10,000, is expected to be further reduced
to 2,500 in 1988.


.I 11130
.C
acq
.W
ALLEGHENY BEVERAGE <ABEV> EXPLORES UNIT SALE.
    CHEVERLY, Md., March 17 - Allegheny Beverage Corp said it
has been approached by a group interested in acquiring its
foodservice unit, Service America Corp.
    The group includes senior management of Service America but
no officers of Allegheny Beverage, the company said.
    The company has agreed to permit the group and its
potential lenders to perform a due diligence review of Service
America, it said.
    Allegheny noted it had previously cancelled plans to spin
off the foodservice subsidiary.
    The company said the group's review is preliminary and
there is no assurance that an acquisition proposal will be made
or, if made, accepted.
    Service America had fiscal 1986 revenues of about 934 mln
dlrs, or about 83 pct of Allegheny Beverage's total revenues of
1.13 billion dlrs for the year ended March 29, 1986, a
spokesman for Allegheny Beverage said.
    He declined to identify the Service America officials in
the acquisition group.
    On Feb 18, 1987, Allegheny said it was cancelling the spin
off of Service America, but gave no reason for doing so. It
said it would place major emphasis on managing Service America
to improve operations and increase earnings at the unit.
    Service America, which Allegheny acquired in May 1985,
operates cafeterias and food and beverage vending machines.
Through other subsidiaries, Allegheny provides coin-operated
laundry services, building maintenance services and retail
office and furniture operations.
    In fiscal 1986, Allegheny reported earnings from continuing
operations of 8.2 mln dlrs or 1.09 dlrs a fully diluted share,
excluding income of 59.7 mln dlrs from discontinued operations
and an extraordinary loss of 8.1 mln dlrs. In May 1985,
Allegheny sold its Pepsi-Cola Bottling Co unit to Pepsico Inc
<PEP> for 160 mln dlrs.
    Including discontinued operations and the special item, net
income was 59.8 mln dlrs or 6.21 dlrs a share fully diluted.


.I 11131
.C
gold
.W
INSPIRATION <IRC> IN CANADIAN GOLD FIND.
    NEW YORK, March 17 - Inspiration Resources Corp said a gold
project in northern Manitoba in which it has a 44.8 pct
interest has yielded estimated total reserves of 1,580,000
short tons grading an average 0.185 ounce of gold per ton.
    The company said <Manitoba Mineral Resources Ltd> owns the
remaining interest in the project, which is located about 25
miles east of Lynn Lake.
    Inspiration said the project has proven reserves of 538,000
tons assayed at 0.212 ounce of gold per ton, probable reserves
of 686,000 tons at 0.166 ounce and possible reserves of 355,000
tons at 0.183 ounce.
    Inspiration said a production decision is expected to be
made in 1988.


.I 11133
.C
earn
.W
MARCOR <MAAR> EXPECTS FISCAL YEAR PROFIT.
    LAS VEGAS, Nev., March 17 - MarCor Development Co Inc said
it expects to post a profit for its fiscal year ended February
28 of about two mln dlrs, compared to a year earlier loss of
3.2 mln dlrs.
    During the prior year the company operated as F and M
Importing, a publicly-held wholesale food distributor.
    During March last year privately-held Marcor acquired a
controlling interest in F and M Importing, divested the food
business, renamed the company and began operating as a real
estate investment and service company.


.I 11134
.C
wheat;grain;corn;
.W
HONDURAS AUTHORIZED TO BUY PL 480 COMMODITIES.
    WASHINGTON, March 17 - Honduras has been authorized to buy
about 75,000 tonnes of U.S. wheat, about 15,000 tonnes of U.S.
corn, and about 6,000 tonnes of U.S. tallow under an existing
PL 480 agreement, the U.S. Agriculture Department said.
    The department said it may buy the wheat, valued at 8.5 mln
dlrs, the corn, valued at 1.5 mln, and the tallow, valued at
2.0 mln dlrs, between March 24 and August 31, 1987, and ship it
from U.S. ports and/or Canadian transshipment points by this
September 30.
    The purchase authorizations cover the entire quantity
provided under the agreement, signed March 11.
 


.I 11135
.C
earn
.W
VALLEY RESOURCES (VR) SETS STOCK SPLIT, UPS PAYOUT.
    CUMBERLAND, R.I., March 13 - Valley Resources Inc said its
board declared a three-for-two stock split and raised the
quarterly cash dividend on the pre-split shares to 42 cts from
38 cts.
    The company said both the split and the dividend are
payable April 15 to holders of record March 31.


.I 11136
.C
acq
.W
CROSS BOOSTS FROST AND SULLIVAN <FRSL> HOLDINGS.
    WASHINGTON, March 17 - A shareholder group led by New York
investor Theodore Cross said in a Securities and Exchange
Commission filing that it boosted its stake in Frost and
Sullivan Inc common stock to 208,800 shares or 13.7 pct of the
total outstanding.
    The group said Cross bought 17,000 shares in the open
market between Feb. 17 and March 10.
    The group had said previously that its Frost and Sullivan
share purchases were for investment.


.I 11138
.C
acq
.W
PERU TO SELL 40 STATE FIRMS TO CUT BUDGET DEFICIT.
    Lima, march 17 - peru will sell about 40 state-owned firms
to trim a projected 740 mln dlrs loss this year among
government-owned companies.
    Some companies would be sold in their entirety and others
would be privatised only partially, according to jose palomino,
president of the government's state company holding firm, the
national development council (conade).
     He told reporters in a radio interview that the aim was to
slim a projected public sector firm deficit of 11 billion
intis. He did not say if foreigners would be allowed to buy all
or part of the companies.
    Independent economists warn that the deficit could push
inflation to between 60 and 100 pct in 1987, against the
govenment target of 40-50 pct.
    Palomino said aeroperu, the government flagship airline
with a 10-jet fleet, would issue stock for purchase by private
investors. The company in 1986 registered its first profit in
eight years, earning about 44.6 mln intis in pre-tax profits.
    Peru has about 140 non-financial state firms. Palomino said
the government would soon publish a list of those to be sold,
including those whose shares would be offered on the lima stock
exchange.
    Last november, palomino said conade's plans included the
possible sale of a company producing palm oil and another
manufacturing electrical appliances. Shares could also be sold
in a copper mine, empresa nacional tintaya sa, in the southern
state of  arequipa.
    Neither Palomino nor conade's general manager, enrique
estremadoyro, were available for comment on whether foreigners
would be allowed to purchase the companies. Their secretaries
said they were out of their offices.
    Jose antonio almenara, the general manager of the lima
stock exchange, where shares of the state-owned firms could be
sold, told reuters that the only foreigners who could purchase
stock at the exchange had to be tax-paying residents of peru.
    He said foreign stockholders cannot remit profits abroad
until at least july 1988.


.I 11140
.C
earn
.W
INTERDYNE CO <IDYN> 1ST QTR FEB 1 LOSS.
    MILPITAS, Calif., March 17 -
    Shr loss 28 cts vs loss 80 cts
    Net loss 2,150,000 vs loss 3,722,000
    Sales 1,478,000 vs loss 2,097,000


.I 11144
.C
earn
.W
KILLEARN PROPERTIES INC <KPI> 3RD QTR NET.
    TALLAHASSEE, Fla., March 17 -Qtr ends Jan 31
    Shr 23 cts vs eight cts
    Net 309,963 vs 110,356
    Revs 2,503,451 vs 1,351,076
    Nine mths
    Shr 62 cts vs 25 cts
    Net 851,776 vs 331,666
    Revs 6,739,351 vs 4,107,713


.I 11145
.C
earn
.W
<GATEWAY MEDICAL SYSTEMS INC> 3RD QTR LOSS.
    DALLAS, March 17 - Period end Jan 31
    Shr loss one cts vs profit eight cts
    Net loss 52,198 vs profit 602,766
    Revs 18.6 mln vs 7,833,424
    Nine mths
    Shr profit 10 cts vs profit six cts
    Net profit 809,243 vs profit 393,372
    Revs 36.3 mln vs 18.7 mln


.I 11146
.C
earn
.W
SPARTECH CORP <SPTN> 1ST QTR JAN 31 NET.
    ST LOUIS, March 17 -
    Shr two cts vs three cts
    Net 369,000 vs 347,000
    Revs 21.3 mln vs 14 mln
    NOTE: Per shr reflects payment of preferred dividends.


.I 11147
.C
earn
.W
ACADEMY INSURANCE GROUP INC <ACIG> 4TH QTR NET.
    VALLEY FORGE, Pa., March 17 -
    Shr profit two cts vs loss 1.05 dlrs
    Net profit 1,666,000 vs loss 18,306,000
    Revs 29.1 mln vs 28.3 mln
    Avg shrs 69.1 mln vs 17.5 mln
    Year
    Shr loss 21 cts vs loss 2.72 dlrs
    Net loss 7,571,000 vs loss 45,517,000
    Revs 117.4 mln vs 123.3 mln
    Avg shrs 35.4 mln vs 16.7 mln
    NOTE: Results include losses of nil vs 473,000 dlrs, or
three cts a share, in quarter and 921,000 dlrss, or three cts a
share, vs 1,137,000 dlrs or seven cts a share, in year from
discontinued operations


.I 11148
.C
earn
.W
ESSEX CHEMICAL CORP <ESX> REGULAR DIVIDEND.
    CLIFTON, N.J., March 17 -
    Qtly div 15 cts vs 15 cts in prior qtr
    Payable May 11
    Record April 10


.I 11149
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 350,000 TONNES CORN  SOLD TO UNKNOWN DESTINATIONS FOR 1986/87.
Blah blah blah.

.I 11152
.C
wheat;corn;
.W
USDA REPORTS 350,000 TONNES CORN TO UNKNOWN.
    WASHINGTON, March 17 - The U.S. Agriculture Department said
private U.S. exporters reported sales of 350,000 tonnes of corn
for delivery to unknown destinations during the 1986/87
marketing season.
    The marketing year for corn began September 1.
    This is the second day running that exporters have reported
corn sales to unknown destinations. Yesterday, they reported
sales of 150,000 tonnes to unknown.


.I 11153
.C
earn
.W
HRE PROPERTIES <HRE> 1ST QTR ENDS JAN 31 NET.
    NEW YORK, March 17 -
    Shr 38 cts vs 47 cts
    Net 2,253,664 vs 2,806,820
    Revs 5,173,318 vs 5,873,904
    NOTE: 1987 qtr includes 126,117 dlrs, or two cts per share,
from gains on sale of property, vs gain 29,812, or less than
one cent per share, for prior qtr.


.I 11155
.C
earn
.W
JAYARK CORP <JAYA> 3RD QTR ENDS JAN 31 LOSS.
    BINGHAMTON, N.Y., March 17 -
    Shr nil vs nil
    Net loss 77,879, vs loss 65,501
    Revs 3,895,741 vs 4,872,163
    Nine mths
    Shr profit nine cts vs profit two cts
    Net profit 488,898 vs profit 118,208
    Revs 13.0 mln vs 15.8 mln


.I 11156
.C
earn
.W
<BIO-VASCULAR INC> 1ST QTR JAN 31 LOSS.
    ST. PAUL, MINN., March 17 -
    Shr loss three cts vs profit two cts
    Net loss 54,791 vs profit 28,866
    Sales 137,9810 vs 338,886
    Avg shrs 1,602,717 vs 1,331,739


.I 11157
.C
earn
.W
GREAT AMERICAN MANAGEMENT <GAMI> 2ND QTR LOSS.
    CHICAGO, March 17 - Period ended Jan 31
    Shr loss 89 cts vs loss 82 cts
    Net loss 5,187,000 vs loss 5,362,000
    Revs 128.4 mln vs 50.3 mln
    Six mths
    Shr loss 1.27 dlrs vs loss 1.04 dlrs
    Net loss 7,015,000 vs loss 6,790,000
    Revs 264.7 mln vs 97.3 mln
    NOTE: Full name is Great American Management and Investment
Inc


.I 11159
.C
acq
.W
NORSTAR <NOR> TO BUY CALLICOON BANK.
    ALBANY, N.Y., March 17 - Norstar Bancorp said it reached an
agreement in principle to buy United National Bank of Callicoon
through a stock exchange valued at 20 mln dlrs.
    Under terms of the agreement, Norstar would buy all 201,660
shares of United's common stock at a rate of three Norstar
shares for each United share.
    With year-end assets of 90 mln dlrs, United has branches
six upstate New York cities, all of which will become part of
Norstar Bank of the Hudson Valley, N.A.
    Norstar is an 11.1 billion dlr multibank financial services
company.


.I 11161
.C
earn
.W
ACADEMY INSURANCE GROUP INC <ACIG> 4TH QTR NET.
    VALLEY FORGE, March 17 -
    Oper shr profit one ct vs loss 1.14 dlrs
    Oper net profit 435,000 vs loss 19.9 mln
    Year
    Oper shr loss 28 cts vs loss 2.78 dlrs
    Oper net loss 10 mln vs loss 46.5 mln
    NOTE: Excludes investment gains of one ct per share vs 12
cts in the quarter, and gains 10 cts per share vs 13 cts in the
year. Excludes loss from discontinued operations of three cts
per share in fourth quarter 1985, and loss of 21 cts per share
vs loss 2.72 dlrs in the year.


.I 11165
.C
earn
.W
MANUFACTURERS HANOVER CORP <MHC> SETS DIVIDEND.
    NEW YORK, March 17 - 
    Qtly div 82 cts vs 82 cts prior
    Pay April 25
    Record April one


.I 11166
.C
grain;trade;
.W
UK TRADE WARY OF HIGHER EC GRAIN LEVY.
    LONDON, March 17 - The European Community may decide to
increase the cereals co-responsibility levy and extend its
scope to cover cereal substitutes if the Commission's 1987/88
farm price package is opposed by member states, Edgar Pye,
vice-president of the British agricultural merchants'
association UKASTA, said.
    At the moment the Commission is proposing the rate of levy
remain unchanged at three pct - but Pye, addressing a feed
manufacturers' dinner in Glasgow, said this could change if its
controversial plans to cut cereal prices and introduce an oils
and fats tax are blocked
    Pye said UKASTA would continue to fight the cereals levy
"tooth and nail."
    However, a test case in the European Court of Justice
contesting the legality of the current regulation applying the
levy, which is being backed by the EC feed manufacturers'
organisation FEFAC, was not now expected to be heard until the
end of 1987, he said.


.I 11167
.C
earn
.W
WILLIAMS INDUSTRIES INC <WMSI> 2ND QTR NET.
    FALLS CHURCH, Va., March 17 - Qtr ended Jan 31
    Shr 10 cts vs three cts
    Net 194,842 vs 54,200
    Revs 22.2 mln vs 11.2 mln
    Six mths
    Shr 50 cts vs 28 cts
    Net 965,924 vs 502,008
    Revs 43.8 mln vs 21.6 mln
    Note: Current six mths revs include 16.8 mln dlrs in revs
from John F. Beasley Construction Co, a wholly owned unit.


.I 11170
.C
earn
.W
<HANOVER COS INC> 3RD QTR JAN 31 LOSS.
    NEW YORK, March 17 - 
    Oper shr loss 26 cts vs profit 22 cts
    Oper net loss 672,879 vs profit 596,760
    Revs 2,188,678 vs 2,364,280
    Nine mths
    Oper shr loss 1.60 dlrs vs profit 92 cts
    Oper net loss 4,278,055 vs profit 2,472,532
    Revs 5,896,322 vs 7,497,782
    Note: Oper net excludes tax gains of 596,000 dlrs for
year-ago qtr and 2,173,000 dlrs for year-ago nine mths.


.I 11172
.C
wheat;grain;corn;
.W
U.S. CERTIFICATES TO PROVIDE WHEAT/CORN SUPPLIES.
    Washington, March 16 - From April through December 1986,
the Commodity Credit Corporation (CCC) issued 3.85 billion dlrs
worth of generic certificates and about 1.8 billion had not
been exchanged by January 1, 1987, the U.S. Agriculture
Department said.
    The department said an additional 4.3 billion dlrs in
certificates has been authorized for issuance during
January-August, 1987.
    These certificates will provide ample free supplies of corn
and wheat for the remainder of the crop year, the department
said in a summary of its Agricultural Outlook report.
    Freeing of stocks through certificates is making U.S. grain
more competitive on world markets, it said.
    The department said last summer, for example, certificates
were exchanged for 215 mln bushels of corn. This helped
increase marketable supplies, so farm-level corn prices
averaged about two dlrs per bushel -- somewhat lower than they
would have otherwise.
    The lower prices probably led to an increase in usage of 40
to 50 mln bushels, it said.
    The department said government spending on farm programs in
fiscal year 1987 is projected to fall half a billion dlrs from
1986's 25.8 billion dlrs.
    During 1988 and 1989, the cost escalation of the first half
of the 1980's will reverse. If current policy remains in force,
annual farm program spending by 1992 will be down from last
year's record by more than eight billion dlrs, it said.
    The department said the President's budget proposals for
1988-1992 would cut farm program spending an additional 24
billion dlrs.
    In 1987, foreign economic growth is expected to remain
close to 2.6 pct, the same as in 1986, but above the 2.4 pct
average of 1980-86, it said.
    Partially because of this improvement, U.S. export volume
is expected to rise in fiscal 1987 for the frist time in seven
years, the department said.


.I 11177
.C
crude
.W
SENATOR SAYS ENERGY REPORT ASSUMPTIONS FLAWED.
    WASHINGTON, March 17 - Sen. Pete Domenici, a main sponsor
of legislation to set an oil import fee, said the
administration's energy security report was based on flawed
economic assumptions.
    The New Mexico Republican said the report did not take into
account the last few weeks' drop in domestic oil production in
its statement that an oil fee would raise prices for consumers.
The report said a decline in economic growth as a result of the
fee would reduce tax revenues. "A five dlr (per barrel) oil
import fee will provide the stimulus to create jobs and
investment, " and raise revenues, he said.


.I 11178
.C
oilseed;grain;soybean;
.W
FARM PROGRAM CHANGES OUTLINED BY USDA OFFICIAL.
    WASHINGTON, March 17 - Upcoming changes being considered in
the U.S. Agriculture Department's transportation and loan
programs were outlined by a USDA official today.
    Addressing the annual meeting of the National Grain and
Feed Association, Tom VonGarlem, assistant deputy administrator
for USDA's state and county operations, said the following
changes are under consideration by USDA.
    Termination of USDA's Transportation Assistance Program for
wheat, barley and sorghum would be proposed this week.
    Changes in USDA's reserve rotation program are also under
consideration, VonGarlem said. While the department has not
made any final decision, banning the use of pik and roll grain
in reserve rotation is under heavy consideration, he said.
    Changes in loan rates will definitely be looked at for next
year's crop, he said, with the option of making soybean loans
partially in cash and in certificates under consideration.
    VanGarlem said he will definitely not extend the 1987 crop
program signup, saying he sees no reason to do so at this time.
    He also said wheat will not be considered for a cash bonus
under the Conservation Reserve Program.


.I 11180
.C
grain
.W
USDA OFFICIAL SEES 7-8 BILLION DLRS CERTIFICATES.
    WASHINGTON, March 17 - There will be seven to eight billion
dlrs of generic certificates on the market by the end of
harvest, an Agriculture Department official said.
    The Commodity Credit Corp will "depend heavily" on
certificates to relieve storage problems this year, Ralph
Klopfenstein, Deputy Administrator for Commodity Operations,
USDA, told participants at the National Grain and Feed
Association's annual convention.
    Klopfenstein said that CCC will not be able to relocate
grain in any significant amount this fall, so certificates will
be used in various programs to relieve storage tightness.
    Klopfenstein said certificates meet the goal of allowing
prices to go below loan levels and providing USDA with an
inventory management tool.


.I 11182
.C
oilseed;grain;corn;soybean;cotton;carcass;rice;
.W
MAJOR U.S. FARM GROUPS OPPOSE POLICY CHANGES.
    WASHINGTON, March 17 - Seven major U.S. farm groups took
the unusual step of releasing a joint statement urging
congressional leaders not to tinker with existing farm law.
    Following meetings with House Agriculture Committee
Chairman Kika de la Garza (D-Tex.) and Senate Agriculture
Committee Chairman Patrick Leahy (D-Vt.), the groups issued a
statement saying lawmakers should "resist efforts to overhaul
the 15-month-old law, which is operating in its first crop
marketing year."
    The farm groups included the American Farm Bureau
Federation, American Soybean Association, National Cattlemen's
Association, National Corn Growers Association, National Cotton
Council, National Pork Producers Council and the U.S. Rice
Producers Legislative Group.
    The statement said Congress should not modify the 1985 farm
bill "so the law might have its intended impact of making
agriculture more competitive in export markets while at the
same time maintaining farm income."
    "We strongly believe American farmers now need
predictability and certainty in farm legislation in order to
have any opportunity of making proper production and marketing
decisions," the groups said.


.I 11184
.C
earn
.W
HOWELL CORP <HWL> 4TH QTR LOSS.
    HOUSTON, March 17 - 
    Shr profit six cts vs profit 17 cts
    Net profit 269,000 vs profit 833,000
    Revs 28.0 mln vs 30.8 mln
    Nine mths
    Shr loss 4.16 dlrs vs profit 74 cts
    Net loss 20.0 mln vs profit 3,543,000
    Revs 93.1 mln vs 117.7 mln
    Note: Current qtr net includes writedown of 20.4 mln dlrs
of net investment in company's oil and gas properties.
    Year-ago results restated to reflect reclassification of
coal mining and marketing segment as ongoing operation rather
than discontinued operation.


.I 11186
.C
earn
.W
SIGMAFORM CORP <SGMA> 3RD QTR JAN 31 NET.
    SANTA CLARA, Calif., March 17 -
    Shr one ct vs five cts
    Net 42,469 vs 226,791
    Sales 7,963,620 vs 6,886,414
    Nine mths
    Shr 12 cts vs 22 cts
    Net 490,927 vs 949,650
    Sales 24.0 mln vs 18.7 mln


.I 11187
.C
earn
.W
MARCUS CORP <MRCS> 3RD QTR FEB FIVE NET.
    MILWAUKEE, WIS., March 17 -
    Shr 14 cts vs 15 cts
    Net 733,000 vs 788,000
    Revs 31.9 mln vs 28.9 mln
    Nine Mths
    Shr 1.08 dlrs vs 1.20 dlrs
    Net 5,560,000 vs 6,162,000
    Revs 104.5 mln vs 97.2 mln
    NOTE: 1987 net includes tax credits of 25,000 dlrs in the
third quarter and 100,000 dlrs in the nine months compared with
370,000 dlrs and 910,000 dlrs in the 1986 periods.


.I 11188
.C
earn
.W
FIRSTCORP INC <FCR> RAISES QTLY DIVIDENDS.
    RALEIGH, N.C., March 17 - 
    Qtly div class A nine cts vs 7.5 cts prior
    Qtly div class B nine cts vs 7.5 cts prior
    Pay April 30
    Record March 31


.I 11189
.C
acq
.W
HEALTHVEST <HVT> BUYS TENNESSEE MEDICAL COMPLEX.
    AUSTIN, Texas, March 17 - Healthvest said it acquired the
Eastwood Hospital medical complex in Memphis from Healthcare
International Inc for 50 mln dlrs cash.
    Healthcare International will continue to operate the
hospital under a lease agreement, the company said.


.I 11190
.C
acq
.W
VENTRA BUYS JOINT VENTURE LEASING.
    HIALEAH, Fla, March 17 - Ventra Management Inc, an over the
counter company, said it acquired Joint Venture Leasing Inc for
60 mln Venture shares, valued at 3.6 mln dlrs.
    Joint Venture was organized in September 1986 to establish
leasing joint ventures with manufacturers and vendors of
computer equipment.
    As a result of the acquisition and Joint Venture's backlog,
Ventra said it expects 1987 sales to be 30 mln dlrs with net
profits of 1.5 mln dlrs.
    Ventra was organized in September 1986 and completed a
public offering of 30 mln shares in January 1987.


.I 11191
.C
acq
.W
OXFORD FINANCIAL BUYS CLANCY SYSTEMS.
    DENVER, March 17 - <Oxford Financial Inc> said it acquired
<Clancy Systems International Inc> for an undisclosed sum.
    The company said Clancy has developed a fully automated
parking citation system, currently in use in Oklahoma City, the
University of California at Sacramento, and in a pilot program
in San Francisco.


.I 11192
.C
earn
.W
REALTY SOUTH INVESTORS INC <RSI> YEAR NET.
    ATLANTA, March 17 -
    Shr 1.03 dlrs vs 82 cts
    Net 1,982,296 vs 1,359,273
    Revs 2,403,481 vs 1,494,304
    Investments 22.4 mln vs 11.5 mln
    NOTE: Shr figures adjusted for 3-for-2 split Feb 23, 1987.
1985 results reflect operations for eight months ended Dec 31,
1985. Company began operating May 1985.


.I 11193
.C
earn
.W
TURNER EQUITY INVESTORS INC <TEQ> PAYOUT.
    TAMPA, Fla., March 17 - 
    Qtly cash distribution 20 cts vs 20 cts prior
    Pay April eight
    Record March 27


.I 11195
.C
acq
.W
GRACE <GRA> COMPLETES RETAIL UNIT SALE.
    NEW YORK, March 17 - W.R. Grace and Co said it completed
the sale of its Bermans The Leather Experts retail business to
a new company in a management led buyout.
    Grace received 99.3 mln dlrs cash and will record a pretax
gain of about 37 mln dlrs in the first quarter, the company
said. An additional pretax gain of 19 mln dlrs will be deferred
until realization is more fully assured, it said.
    The diversified chemical and industrial company said the
sale completes its program to divest retail operations.
    In addition to the cash payment, Grace received warrants to
buy up to 47.5 pct of the new company and has reinvested about
19 pct of the proceeds in debt of the new firm.
    Financing was provided by Prudential Insurance Co of
America and affiliates.


.I 11196
.C
earn
.W
WAUSAU PAPER MILLS CO <WSAU> 2ND QTR NET.
    WAUSAU, WIS., March 17 - Period ended Feb 28
    Shr 61 cts vs 56 cts
    Net 2,764,000 vs 2,540,000
    Sales 60.4 mln vs 55.8 mln
    Six mths
    Shr 1.27 dlrs vs 1.15 dlrs
    Net 5,741,000 vs 5,269,000
    Sales 122.8 mln vs 109.9 mln
    NOTE: Per-share data restated for 10 pct stock dividends
paid to holders of record Dec 26, 1986 and Dec 26, 1985


.I 11200
.C
earn
.W
TAUNTON SAVINGS BANK <TSBK> SETS FIRST DIVIDEND.
    TAUNTON, Mass., March 17 - Taunton Savings Bank said its
board declared an initial cash dividend of six cts per share.
    Taunton, which went public last June, said the rate was
based on 3,220,000 outstanding shares.
    It said the dividend was payable April 15 to shareholders
of record March 31.
    The company said it did not know if it would pay regular
dividends in the future.


.I 11201
.C
earn
.W
FIBRONICS INTERNATIONAL INC <FBRX> 4TH QTR LOSS.
    HYANNIS, Mass., March 17 - 
    Shr loss 14 cts vs loss one ct
    Net loss 836,327 vs loss 34,926
    Revs 8,939,390 vs 8,136,160
    Year
    Shr loss 34 cts vs loss nil
    Net loss 2,008,103 vs loss 14,078
    Revs 30.1 mln vs 28.0 mln
    Note: Year-ago results restated to reflect acquisition of
Spartacus Inc in Febaruary 1986.


.I 11206
.C
earn
.W
TELEPHONE AND DATA SYSTEMS INC <TDS> YEAR NET.
    CHICAGO, March 17 -
    Oper shr 94 cts vs 93 cts
    Oper net 8,889,000 vs 8,570,000
    Revs 155.0 mln vs 123.4 mln
    Avg shrs 9,450,000 vs 9,174,000
    NOTE: Net excludes discontinued operations a gain of
4,679,000 dlrs, or 50 cts a share vs a loss of 720,000 dlrs, or
seven cts a share. 1986 net includes charge of 865,000 dlrs
from repeal of investment tax credits
    Company corrects 1985 year per-share operating net in table
which originally ran march 10


.I 11207
.C
crude
.W
******API SAYS DISTILLATE STOCKS OFF 7.35 MLN BBLS, GASOLINE OFF 2.89 MLN, CRUDE OFF 4.39 MLN .
Blah blah blah.

.I 11208
.C
earn
.W
CPC INTERNATIONAL INC <CPC> QTLY DIV.
    ENGLEWOOD CLIFFS, N.J., March 17 -
    Shr 31 cts vs 31 cts prior
    Payable April 24
    Record March 31


.I 11209
.C
wheat;grain;
.W
CONGRESSMAN URGES WHEAT EEP TO SOVIET UNION.
    WASHINGTON, March 17 - Kansas Republican Congressman Pat
Roberts urged the Reagan administration to offer export
enhancement program, eep, subsidies to the Soviet Union.
    Speaking at a House foreign agriculture subcommittee,
Roberts said the U.S. has offered eep to China and Poland, and
should also include the Soviet Union.
    Rep. Roberts said there had been some talk that the issue
of an eep to Moscow had not been raised within the Reagan
administration recently because Secretary of State George
Shultz was out of the country.
    "That very well may be the case," said Tom Kay, U.S.
Agriculture Department Foreign Agricultural Service
administrator. However, Kay told Reuters later that his reply
to Roberts was not based on any particular knowledge.
    Rep. Roberts urged Kay to convey to top officials of the
USDA that some in Congress favor a wheat eep to Moscow.
    "I'd be delighted to deliver the message," Kay replied.
    Earlier, Kay had repeated Agriculture Secretary Richard
Lyng's statement last week that "the door is not yet closed on
an eep to the Soviet Union."


.I 11210
.C
earn
.W
PUBLIC SERVICE ENTERPRISE <PEG> TWO MONTHS NET.
    NEWARK, N.J., March 17 - Period ends February 28
    Shr 89 cts vs 87 cts
    Net 119.5 mln vs 114.6 mln
    Revs 872.3 mln vs 917.4 mln
    Year
    Shr 2.87 dlrs vs 3.32 dlrs
    Net 383.4 mln vs 413.6 mln
    Revs 4.45 billion vs 4.45 billion
    NOTE: Full name Public Service Enterprise Group Inc.


.I 11211
.C
earn
.W
DAMON CREATIONS INC <DNI> 4TH QTR JAN THREE NET.
    NEW YORK, March 17 - 
    Shr profit 49 cts vs loss 41 cts
    Net profit 543,000 vs loss 457,000
    Revs 10.4 mln vs 14.2 mln
    Year
    Shr loss 71 cts vs loss 2.11 dlrs
    Net loss 781,000 vs loss 2,325,000
    Revs 38.9 mln vs 44.9 mln


.I 11212
.C
earn
.W
GATES LEARJET CORP <GLJ> 4TH QTR LOSS.
    TUCSON, Ariz., March 17 -
    Shr loss 12 cts vs loss 99 cts
    Net loss 1,476,000 vs loss 11,965,000
    Sales 83.4 mln vs 110.9 mln
    Year
    Shr loss 1.79 dlrs vs loss 1.90 dlrs
    Net loss 21,720,000 vs loss 22,969,000
    Sales 259.0 mln vs 317.3 mln


.I 11214
.C
crude
.W
API SAYS DISTILLATE, GAS STOCKS OFF IN WEEK.
    WASHINGTON, March 17 - Distillate fuel stocks held in
primary storage fell by 7.35 mln barrels in the week ended
March 13 to 112.74 mln barrels from a revised 120.09 mln the
previous week, the American Petroleum Institute (API) said.
    In its weekly statistical bulletin, the oil industry trade
group said gasoline stocks fell 2.89 mln barrels to 248.44 mln
barrels from a revised 251.33 mln, and crude oil stocks dropped
4.39 mln barrels to 325.13 mln from a revised 329.52 mln.
    It said residual fuel stocks fell 250,000 barrels to 35.73
mln from 35.98 mln barrels.
    API said refinery runs in the week rose to 11.80 mln
barrels per day (bpd) from a revised 11.70 mln and refinery use
of operating capacity was 75.7 pct, up from a revised 75.0 pct.
    Crude oil imports in the week rose to 3.66 mln bpd from a
revised 2.67 mln, API added.


.I 11218
.C
earn
.W
CPC INTERNATIONAL INC <CPC> REGULAR DIVIDEND.
    ENGLEWOOD CLIFFS, N.J., March 17 - 
    Qtly div 31 cts vs 31 cts prior
    Pay April 24
    Record March 31


.I 11219
.C
earn
.W
<CIMARRON PETROLEUM LTD> NINE MTHS NET.
    CALGARY, Alberta, March 17 -
    Shr 48 cts vs 64 cts
    Net 1,959,404 vs 2,621,778
    Revs 5,132,626 vs 8,167,401


.I 11222
.C
earn
.W
ELECTRO AUDIO DYNAMICS INC <EAD> 2ND QTR JAN 31.
    GREAT NECK, N.Y., March 17 -
    Shr profit 14 cts vs loss 55 cts
    Net profit 864,000 vs loss 2.1 mln
    Revs 24.2 mln vs 1.5 mln
    Six months
    Shr profit seven cts vs loss 74 cts
    Net profit 434,000 vs loss 2.7 mln
    Revs 42.5 mln vs 2.9 mln
    NOTE:1986 2nd qtr and six months includes loss of 600,000
dlrs and 285,000 dlrs respectively from discontinued operations
and exclude operations of Action DRug Co Inc acquired by
company's 81 pct owned subsidiary, Technodyne, in August 1986.
    1987 net includes gain of 2.0 mln dlrs from sale of
building and extraordinary gain of 411,000 dlrs from tax loss
carryforward.
    Share earnings for both periods reflect preferred stock
dividends.


.I 11223
.C
earn
.W
TECHNODYNE INC <TND> 2ND QTR NET.
    GREAT NECK, N.Y., March 17 -
    Shr profit 14 cts vs loss 17 cts
    Net profit 686,000 vs loss 831,000
    Revs 24.2 mln vs 1.5 mln
    Six mths
    Shr profit 22 cts vs loss 17 cts
    Net profit 1,062,000 vs loss 812,000
    Revs 42.5 mln vs 2.9 mln
    NOTE: Quarter ends January 31.
    1986 excludes extraordinary gain of six cts per share in
the quarter and 10 cts in the six months. 1985 excludes
discontinued operations loss of six cts a share in the quarter
and loss of two cts in the six months.
    Company is 81.5 pct owned by Electro Audio Dynamics <EAD>.


.I 11224
.C
earn
.W
<SCEPTRE INVESTMENT COUNSEL LTD> 1ST QTR NET.
    TORONTO, March 17 - Period ended January 31
    Shr 22 cts vs 16 cts
    Net 518,564 vs 374,198
    Revs 2,090,724 vs 1,614,079


.I 11225
.C
earn
.W
D/P SELECTED UTILITIES <DNP> HIKES PAYOUTS.
    CHICAGO, March 17 - Duff and Phelps Selected Utilities Inc
said it approved payment of higher monthly dividends.
    The closed end-investment company approved payment of 4.5
cts on April 10, record March 31; of five cts, payable May 11,
record April 30; and of 5.5 cts, payable June 10, record May
29.
    Duff and Phelps first monthly dividend of four cts was paid
on March 10, it noted.


.I 11226
.C
earn
.W
AMERICAN ELECTROMEDICS CORP <AECO> 2ND QTR LOSS.
    GREAT NECK, N.Y., March 17 - Qtr ends Jan 31
    Shr loss three cts vs loss six cts
    Net loss 93,000 vs loss 191,000
    Revs 338,000 vs 554,000
    Six mths
    Shr loss four cts vs loss seven cts
    Net loss 108,000 vs loss 219,000
    Revs 854,000 vs 1,283,000
    NOTE: Company is 80 pct owned by Technodyne Inc <TND>, a
subsidiary of Electro Audio Dynamics Inc <EAD>.


.I 11228
.C
acq
.W
LENNAR <LEN> COMPLETES ACQUISITION.
    MIAMI, March 17 - Lennar Corp said it completed the
previously announced acquisition of Development Corp of America
<DCA>.
    Consequently, it said the American Stock Exchange suspended
trading of Development Corp's common stock, 10 pct subordinated
debentures due 1993 and 12 pct subordinated debentures due
1994.
    Lennar said the debentures will continue to be traded
over-the-counter.


.I 11230
.C
carcass
.W
IBP (OXY) PLANT REOPENS WITHOUT INCIDENT.
    CHICAGO, March 17 - Iowa Beef Processors Inc said
"hundreds" of its employees returned to work at its Dakota
City, Nebraska beef processing plant without incident.
    Last week, Iowa Beef said it would lift a lockout in effect
at the plant since mid-December, which affected 2,800 members
of the United Food and Commercial Workers Union.
    Both union and non-union meatpackers who returned to work,
agreed to comply with Iowa Beef's last contract offer.
    "Start-up went well today and operations will continue to
pick up as employees return and others are hired," according to
a company statement. Picketing UFCWU members at the plant did
not disrupt operations, a company spokesman said.
    "Our employees are asked to continue to return to work at
8AM unless otherwise notified," he said.
    Iowa Beef, a subsidiary of Occidental Petroleum Corp, said
it is beginning to take applications for permanent positions at
the plant.
    


.I 11236
.C
earn
.W
PHP HEALTHCARE CORP <PHPH> 3RD QTR JAN 31 NET.
    FALLS CHURCH, Va., March 17 - 
    Shr 10 cts vs 10 cts
    Net 358,941 vs 299,838
    Revs 8,645,289 vs 4,532,175
    Avg shrs 3,446,752 vs 2,921,173
    Nine mths
    Shr 23 cts vs 12 cts
    Net 705,799 vs 491,076
    Revs 21.5 mln vs 11.0 mln
    Avg shrs 3,093,491 vs 4,068,000
    Note: Net includes tax credits of 164,000 dlrs vs 123,634
dlrs for qtr and 311,000 dlrs vs 207,719 dlrs for nine mths.


.I 11237
.C
earn
.W
BANKERS TRUST NEW YORK CORP <BT> QTLY DIVIDEND.
    NEW YORK, March 17 - 
    Qtly div 41.5 cts vs 41.5 cts prior
    Pay April 28
    Record March 31


.I 11238
.C
earn
.W
HALLWOOD GROUP INC <HWG> 2ND QTR JAN 31 LOSS.
    NEW YORK, March 17 -
    Shr loss nine cts vs profit 23 cts
    Net loss 418,000 vs profit 1,037,000
    Revs 2,872,000 vs 4,700,000
    Six mths
    Shr profit nine cts vs profit 52 cts
    Net profit 418,000 vs profit 2,365,000
    Revs 6,853,000 vs 9,379,000
    NOTE: Includes tax loss carryforward gains of 164,000 dlrs
vs 551,000 dlrs in quarter, and gains of 365,000 dlrs vs
1,016,000 dlrs in the six months.


.I 11239
.C
wheat;grain;
.W
LYNG SAID TO HAVE NO COMMENT ON USSR WHEAT EEP.
    WASHINGTON, March 17 - U.S. Agriculture Secretary Richard
Lyng told representatives of several of the largest grain
exporting firms and two farm organizations that he was not in a
position to comment on their request that the Reagan
administration offer subsidized wheat to the Soviet Union,
according to participants in today's meeting.
    "He (Lyng) simply told us he was not in any position to talk
about an EEP (export enhancement program) initiative to the
Soviet Union," said Glen Hofer, vice president of the National
Council of Farmer Cooperatives.
    Another participant in the meeting, who asked not to be
identified, said Lyng was "unresponsive" to the group's request.
    Participants in the meeting included Cargill Inc,
Continental Grain Co, Louis Dreyfus Corp, Union Equity
Cooperative Exchange, the National Association of Wheat
Growers, the National Council of Farmer Cooperatives, among
others, participants said.
    Deputy Agriculture Secretary Peter Myers and Under
Secretary Daniel Amstutz also attended the 30-minute meeting.
    Hofer described Lyng as "sympathetic but noncommittal," and
said he thought he detected "a sense of frustration" on Lyng's
part at not being able to respond more positively to the
group's urging.
    A grain industry representative said some participants were
"puzzled" by USDA's apparent reluctance to bring before the
cabinet council an EEP wheat offer to the Soviets.
    "There is a feeling that there is more receptivity (to the
idea) within the cabinet council now than there ever has been,"
this official, who asked not to be identified, said, referring
to an EEP wheat offer to the Soviets.
    This official said there was not a significant amount of
pressure being exerted by lawmakers on Lyng to make an EEP
offer to Moscow.
    Reminded that Senate Agriculture Committee Chairman Patrick
Leahy (D-Vt.) had written two letters to Lyng urging such an
offer, this official said Lyng had received virtually no phone
calls from lawmakers on the subject.
    But Hofer said other important matters at the White House,
rather than an absence of political pressure, might have
restrained Lyng.


.I 11244
.C
acq
.W
PAPERBOARD PLANS BID TO ACQUIRE BELKIN.
    TORONTO, March 17 - <Paperboard Industries Corp> said it
planned to make an unconditional 21 dlr a share cash offer for
<Belkin Inc>'s 7.6 mln common and 2.3 mln non-voting shares.
    Paperboard said Balaclava Enterprises Ltd, owned by Morris
Belkin, agreed to tender 98.2 pct of Belkin's common shares.
It added that in case of a competing offer of more than 23
dlrs, it had the right to match it. If it did not match the
offer, Balaclava could accept the competing bid.
    The two companies manufacture linerboard and boxboard from
recycled fibre. Their combined revenues are about 500 mln dlrs.


.I 11246
.C
earn
.W
******CATHAY PACIFIC AIRWAYS 1986 NET PROFIT 1.23 BILLION H.K. DLRS VS 777.5 MLN.
Blah blah blah.

.I 11248
.C
earn
.W
CATHAY PACIFIC AIRWAYS LTD <CAPH.HK> YEAR 1986.
    HONG KONG, March 18 -
    Shr 46.5 H.K. Cents vs 29.3
    Final div 14 cents, making 20 cents (no comparison)
    Net 1.23 billion dlrs vs 777.5 mln
    Turnover 9.06 billion dlrs vs 7.52 billion
    Note - Dividend payable May 29, books close May 11 to 22.
    Note - Company floated in April 1986 and is now 50.23 pct
owned by Swire Pacific Ltd <SWPC.HK>, 16.43 pct by Hongkong and
Shanghai Banking Corp <HKBH.HK> and 12.5 pct by <China
International Trust and Investment Corp>.


.I 11250
.C
acq
.W
PAPER SAYS U.S. MAY SEEK TO CURB FOREIGN TAKEOVERS.
    NEW YORK, March 18 - The Reagan administration will
consider curbing foreign takeovers of security-sensitive
industries such as semiconductors and computers, the New York
Times said, quoting an unnamed senior administration official.
    "I think there's a strong sentiment here that some
industries are not totally up for grabs," the paper quoted the
official as saying.
    "Two of the most visible (industries) are semiconductor and
computer companies," said the official, who the newspaper said
was a central figure in the opposition to Japan's Fujitsu Ltd
<ITSU.T> takeover bid for <Fairchild Semiconductor Corp>.
    The Fairchild-Fujitsu deal was abandoned on Monday, and
industry analysts said the move was a victory for the Reagan
administration in its drive to beat back Japanese competition
in the important computer chip manufacturing industry.
    Officials told Reuters last week that Commerce Secretary
Malcolm Baldrige and Defence Secretary Caspar Weinberger fought
the planned sale of Fairchild by French-controlled Schlumberger
Ltd <SLB> to Japan's largest computer maker because it could
have left the U.S. Military dependent on foreign sources for
vital technology.
    The New York Times quoted Baldrige as saying the time had
come to limit takeovers in security-sensitive areas.
    "Everybody wants an open investment policy, but there have
to be some exceptions for the national interest," Baldrige was
quoted as saying.
    The newspaper said Baldrige and Weinberger are expected to
bring the takeover issue before a top-level interagency
policymaking group, such as Treasury Secretary James Baker's
Economic Policy Council or the president's National Security
Council.


.I 11251
.C
money-fx;yen;
.W
YEN USURPS GODZILLA AS JAPAN'S FAVOURITE HORROR.
    By Steven Brull, Reuters
    TOKYO, March 18 - "Endaka," the strong yen, has usurped
"Godzilla Versus the Sea Monster" as Japan's favourite horror
story.
    The yen's 40 pct surge against the dollar over the last two
years has frightened foreigners with tales of the 40 dlr melon,
the 120 dlr taxi ride from the airport and rents of 15,000 dlrs
a month.
    But "endaka," like many Japanese products, is for foreign
consumption, locals and long-time foreign residents said.
    "It's not really that expensive. I don't pay attention to
the cost of living," said Cheryl Richmond, a 25-year-old
Canadian teacher of English in Tokyo.
    Richmond said she earns 1,635 dlrs a month by "chatting" 40
hours a week in English to Japanese who hope to learn the
language. For 326 dlrs a month she rents a sunny, quiet
two-room flat some 20 minutes by train from Shinjuku, one of
Tokyo's prime business and entertainment districts, and has
managed to send home an average of 320 dlrs a month.
    She spends less than 6.50 dlrs a day on food despite eating
out once a day.
    "For lunch I buy the teishoku (daily special) which comes
with soba (buckwheat noodles) or pork cutlet, pickles, miso
soup, rice and tea," although she takes only coffee for
breakfast and a sandwich for dinner.
    No one argues that Tokyo is cheap, but long-time residents
see no need to spend the 2,000 to 15,000 dlrs a month spent by
foreign firms to house executives in Western-style homes.
    The companies feel otherwise. They say they must pay the
price to bring over the best people needed to back up their
push into Japan's increasingly lucrative markets.
    "You can't expect people to move from New York or Sydney and
trade down. It's not reasonable," said a spokesman for
International Business Machines Corp (IBM), which supports
Western lifestyles for more than 350 foreigners in Tokyo.
    Tokyo is the world's most expensive city for business
travellers, a survey issued this month by Employment Conditions
Abroad said. It found that businessmen visiting Tokyo spend on
average more than 300 dlrs a day.
    While the businessmen have little choice but to come here,
many tourists, especially those from Europe, are opting to
visit sunnier and cheaper climes in Southeast Asia.
    The Japan Tourist Bureau estimates "endaka" caused an 11.5
pct drop in the number of foreign visitors to Japan last year.
    Those who came tried to cut back on expenses, chiefly by
curtailing shopping, it said.
    To help combat "endaka" and the slump in tourism, the Tourist
Bureau prepared a pamphlet, "Economical Travel in Japan."
    It gives budget-saving tips on finding medium-priced
business hotels and Japanese-style inns, cheap sushi and public
baths while getting a "revealing glimpse of Japanese in their
daily lives."
    Residents of Okubo House, a transit hotel in Tokyo's
Shin-Okubo love hotel district, offer even more savvy advice.
    For 9.80 dlrs a night, Scott Perry, a 23-year-old budding
English teacher from New Zealand, shares an unheated,
berth-sized twin-room in the Japanese "flop house."
    Perry has budgeted 26 to 33 dlrs a day while he looks for
work. "Normally I eat 'teishoku' for 400 yen but sometimes I'll
splurge at Shakey's where for 550 yen you can eat unlimited
pizza for at least two hours."
    Still, there are the extras that dent the budget. "I had to
spend 600 yen today to dry-clean my suit coat," he said.


.I 11252
.C
wheat;grain;
.W
BANGLADESH PURCHASE OF WHEAT CONFIRMED.
    DHAKA, March 18 - Trade sources here confirmed earlier
tentative reports that Bangladesh had bought 200,000 tonnes of
optional origin feed wheat late last week and over the weekend.
    They said the Continental Grain Co, of the United States,
won the contract to supply the wheat from the EC and other
parts of Europe.
    It will supply 100,000 tonnes at a rate of 96.92 U.S. Dlrs
a tonne as a first consignment by April 7. It will supply the
remaining 100,000 tonnes at a rate of 93.42 dlrs by April 16.


.I 11253
.C
acq
.W
PHILIPPINES SOCIAL SECURITY TO BUY SAN MIGUEL SHRS.
    MANILA, March 18 - The Philippines' Social Security System
(SSS) is planning to buy eight mln shares in diversified brewer
<San Miguel Corp> (SMC), SMC chief financial officer Ramon del
Rosario said.
    He told reporters the government organisation had expressed
interest in one seat on SMC's 15-man board and was preparing to
invest 800 mln pesos, assuming a purchase price of 100 pesos a
share.
    The shares involved in the proposal were part of the block
of 38 mln shares owned by the United Coconut Planters Bank
(UCPB) and sequestered by the government.
    The block is split between class A and class B stock.
    SMC also proposed to sell a further five mln shares to A.N.
Soriano Corp, the family company of San Miguel president Andres
Soriano, del Rosario said.
    The shares are worth some 500 mln pesos at recent prices.
    Del Rosario said the 14 mln B shares in the block which are
open to foreign ownership would probably be sold to
unidentified foreign purchasers.
    He said SMC and UCPB would meet later this week to try to
resolve disputes over the pricing of the shares.
    President Corazon Aquino earlier this month established an
arbitration panel to settle a row over the disposal of the
shares.
    Their initial sale to Soriano through SMC Hong Kong unit
Neptunia Corp was blocked by the Presidential Commission on
Good Government.
    The commission sequestered the stock on suspicion that the
real owner of the block was Eduardo Cojuanco, the former
chairman of San Miguel and the UCPB and a close associate of
deposed former president Ferdinand Marcos.


.I 11254
.C
earn
.W
<SUN HUNG KAI CO LTD> YEAR 1986.
    HONG KONG, March 18 -
    Shr 21.6 H.K. Cents vs 12
    Final div six cents vs three, making nine cents vs 5.5
    Net 121 mln dlrs vs 67.42 mln
    Note - Extraordinary gains 72 mln dlrs vs 2.7 mln. Special
bonus four cents vs nil. Dividend payable May 25, books close
April 28 to May 6.


.I 11255
.C
palm-oil;veg-oil;
.W
******Indonesia imports palm oil to counter possible May shortage, Trade Minister says.
Blah blah blah.

.I 11257
.C
palm-oil;veg-oil;
.W
INDONESIA TO IMPORT PALM OIL, FEARS MAY SHORTAGE.
    JAKARTA, March 18 - Indonesia has issued licences to
traders to import palm oil to avert a possible shortage of
cooking oil during the Moslem fasting month of Ramadan in May,
Trade Minister Rachmat Saleh told Reuters.
    "We have given permission for a small amount of imports to
prevent a shortage during Ramadan," he said. He gave no figures
for the amount of palm oil to be imported, but said it would
come from Malaysia.
    Indonesia, the world's second largest palm oil producer,
earlier denied it had granted palm oil import licences.
    Saleh was replying to a question from Reuters after traders
in London said Indonesia had issued licences to import around
135,000 tonnes of palm oil for delivery in April.
    Indonesia, with 168 mln people, is the world's largest
Moslem country. During Ramadan Moslems fast during the day and
have large meals after sunset.
    Indonesian crude palm oil exports in the first 11 months of
1986 were 469,100 tonnes, according to central bank figures,
against 652,000 tonnes in the whole of calendar 1985.
    Indonesia is expanding palm oil output, and Saleh did not
explain why there might be a shortage during Ramadan.


.I 11259
.C
acq
.W
ECONOMIC SPOTLIGHT - JAPAN BUYING OVERSEAS FIRMS.
    By JEFF STEARNS, REUTERS
    TOKYO, March 18 - More U.S. And European firms will be
falling prey to Japanese corporations bulging with cash and
eager to extend their reach further overseas, according to
merger and acquisitions specialists polled by Reuters.
    Already, rich Japanese companies have pounced on U.S.
Banks, steel and other businesses.
    In the latest attempt, Fujitsu Ltd <ITSU.T> -- Japan's
biggest computer maker -- unsuccessfully bid for <Fairchild
Semiconductor Corp>, a U.S. Microchip maker which supplies
components for supercomputers.
    Nomura Securities Co Ltd <NMSC.T> and Daiwa Securities Co
Ltd <DSEC.T>, Japan's two largest brokerage firms, are seeking
a niche in the U.S. And European securities markets, while the
country's huge banks are looking for strongholds in overseas
banking, the takeover specialists said.
    Major trading houses, which see their profits evaporating
in the heat of increased competition in merchandise trade, all
have foreign businesses on their shopping lists.
    Among manufacturers, car parts makers are under the most
pressure to buy up overseas companies and follow the big auto
makers they subcontract for as these move offshore.
    "The timing is favourable for Japanese parties to buy up
potential overseas businesses, especially in the U.S. --
Japan's largest market and where political risks are minimal," a
takeover specialist at one trading company said.
    Japanese companies have become among the world's richest
after a series of boom export years and as the yen has climbed
against the dollar by some 40 pct in the past 18 months.
    But the yen's strength, which has also raised the costs of
Japan's exports and allowed its Asian neighbours to move into
its traditional markets, has frozen Japanese corporate growth,
the specialists said.
    Looming trade friction is also threatening to erect more
barriers against Japanese exports.
    Japanese firms see overseas acquisitions as a way to avoid
the gloomy growth outlook and put their excess cash to work.
Domestic interest rates, now at record lows, offer little
investment opportunity.
    "Japanese interest in acquisitions has been continuous, but
the recent economic factors have become a driving force," said a
banking industry source.
    So far, though, the Japanese are being cautious.
    While mergers and acquisitions among U.S. Firms number in
the thousands, Japanese buyouts of overseas companies have
totalled just a few dozen, one merchant banker said.
    Another merchant banker said that a flurry of Japanese
acquisition activity was originally expected five years from
now, but that time span appeared now to be too long.
    Japanese firms are becoming more aggressive now, he said.
    A turning point seemed to be Dainippon Ink and Chemicals
Inc's <DIAC.T> takeover bid for <Sun Chemical Corp> of the U.S.
Last year, which some analysts saw as somewhat hostile, he
added.
    Dainippon Ink bought Sun Chemical's graphic arts group for
550 mln dlrs late last year, after an earlier unsolicited bid
for the whole company. Sun Chemical refused to sell its entire
business after learning that Dainippon planned to liquidate all
but its graphic arts-related businesses.
    Hostile takeovers are considered unethical and frowned upon
by the Japanese, the trading company official says. "Japanese
people don't like fighting. They prefer peaceful amicable
deals." But now after some experience overseas, Japanese
companies are acquainted with local practice, he adds. "This is
a healthy progression."
    However, the experts do not expect the Japanese to run the
board meetings of any giant U.S. Or European concerns.
    "Japanese companies are not fully confident in managing a
large U.S. Or European corporation," one banker said. "They will
expand their operations only gradually, a typical way for
Japanese business."
    A foreign merchant banker also noted, "There are not many
mega-deals left to do in the United States. A lot of the big
deals there have already been done."
    But medium-size and small concerns are potential targets of
Japanese companies, the specialists said.
    Japanese will be aiming for new businesses in
high-technology areas. "Japanese companies had used technology
and quality to get where they are and are unlikely to deviate
from that trend," one takeover specialist said.
    Many are watching the results of the first acquisitions. If
these succeed, activity could build, the specialists said.
    But few such specialists are going to sit back and wait
until the action begins. Already, they said, Japanese trading
houses, long-term credit and commercial banks, brokerages and
foreign merchant banks have set up research sections to act as
go-betweens in deals or find good buys for themselves.


.I 11260
.C
earn
.W
******United Biscuits pretax profit 125.2 mln stg vs 102.2 mln in 53 wks to Jan 3.
Blah blah blah.

.I 11261
.C
crude
.W
KUWAIT SAYS NO OPEC MEMBER VIOLATING OUTPUT QUOTA.
    KUWAIT, March 18 - Kuwaiti Oil Minister Sheikh Ali
al-Khalifa al-Sabah said in a newspaper interview that no OPEC
member was exceeding oil production quotas allocated by the
13-nation group.
    Sheikh Ali told Kuwait's daily al-Anba "All OPEC states,
without exception, are producing within the quotas allocated to
them. Some of them are producing less."
    Some oil industry sources had said the United Arab
Emirates, which had been generally been producing over its
quota since OPEC returned to quotas last September, was still
pumping more than its allotted amount in the first months of
this year.
    Ecuador had also publicly stated it was over its quota, but
an earthquake early this month stopped that. Iraq has rejected
its quota, but oil sources say it may be having problems
marketing at official prices all the oil it wants to sell.
    OPEC agreed in December to cut overall oil production by
7.25 pct to 15.8 mln barrels per day (bpd) for the first six
months of this year and abide by fixed prices around 18 dlrs a
barrel from February 1.


.I 11262
.C
earn
.W
UNITED BISCUITS <UBIS.L> 53 WEEKS TO JANUARY 3.
    LONDON, March 18 -
    Shr 20.3p vs 19.1p
    Div 6.0p vs 5.15p making 9.5p vs 8.0p
    Turnover 1.93 billion stg vs 1.91 billion
    Pretax profit 125.2 mln vs 102.2 mln
    Tax 42.5 mln vs 31.1 mln
    Trading profit 138.0 mln vs 122.7 mln
    Trading profit includes -
    UB Foods Europe 88.7 mln vs 78.4 mln
    UB Restaurants 10.3 mln vs same
    UB Foods U.S. 43.8 mln vs 39.1 mln
    Other 3.9 mln vs 3.5 mln
    Unallocated costs 8.7 mln vs 8.6 mln
    Interest 12.8 mln vs 20.5 mln
    Note - full name of company is United Biscuits (Holdings)
Plc
    Minority interests 0.1 mln vs same
    Extraordinary charges 6.8 mln vs 14.3 mln
    Extraordinary charges and credits include -
    Surplus on bid for Imperial Group Plc 4.9 mln vs nil
    Costs of Philadelphia bakery closure nil vs 19.6 mln


.I 11263
.C
interest
.W
LAWSON EXPECTS INTEREST RATE FALL SOON.
    LONDON, March 18 - U.K. Chancellor of the Exchequer Nigel
Lawson said he expected British interest rates to fall soon in
response to his fiscal 1987/88 budget, but he did not say by
how much.
    "I would be very surprised if there is not a very early
further fall in interest rates," Lawson said in a radio
interview.
    Analysts said they foresaw U.K. Base rates falling as early
as today by as much as one full percentage point after Lawson's
announcement yesterday that the public sector borrowing
requirement in fiscal 1987/88 and 1988/89 was to fall to 1.0
pct of GDP, or some four billion stg.
    British banks' base lending rates fell a half percentage
point on March 9 to the current 10.5 pct.


.I 11265
.C
interest
.W
THAI BANKS WEIGH NEW INTEREST RATE CUT.
    By Vithoon Amorn, Reuters
    BANGKOK, March 18 - Officials of five Thai commercial banks
are expected to meet tomorrow to seek agreement on cutting
interest rates, banking sources said.
    They said they expect Thai banks to opt for a cut to spur
domestic loan demand to help reduce persistent high liquidity
on the money market.
    Many bankers have been urging an average half percentage
point cut in deposit rates and a one point cut in lending
rates, they said.
    Six major Thai major banks reduced minimum loan and
overdraft rates by 0.50 to 0.75 percentage point on February 16
but the move has not substantially increased loan demand, the
sources said.
    Excess liquidity has been hitting bank profits since early
last year despite five interest rate cuts in 1986. The current
gross 7.25 pct interest rate for one-year fixed bank deposit
and the 11.5 pct minimum loan rate are the lowest in a decade.
    Bankers said the Thai banking system is saddled with about
40 to 50 billion baht of surplus funds which have created
problems for many banks in managing their money effectively.
    Profits of many Thai banks fell sharply last year partly
because of a mismatch of loan demand and bank deposit growth.
The Bank of Thailand estimated overall lending by the Thai
banking system grew 3.8 pct in 1986 against a 12 pct expansion
in bank deposits.
    Reports of a possible new round of interest rate cuts have
further buoyed the Thai stock market this week.
    The Securities Exchange of Thailand (SET) Index on Monday
recorded its biggest daily advance in recent years, shooting up
4.57 points to a new seven-year high of 223.02.
    Brokers and market analysts said Thai stocks will register
more gains as long as liquidity remains in the money market.
    Thai and foreign bankers said the liquidity problem will
grow if the Bank of Thailand does not extend permission for
local banks to hold foreign exchange positions up to 40 pct of
bank capital.
    If the regulation is not extended beyond its April 3 expiry
date, many commercial banks will have to reduce foreign
exchange holdings to a maximum 20 pct.
    Bankers said such that could add another five billion baht
of surplus funds to the local money market.


.I 11266
.C
earn
.W
CATHAY PACIFIC FORECASTS GOOD 1987 PERFORMANCE.
    HONG KONG, March 18 - Cathay Pacific Airways Ltd <CAPH.HK>
forecast another good year in 1987 in view of good growth in
both passenger and cargo traffic volumes early this year over
the year-earlier period.
    The airline did not quantify its performance in early 1987
but said it would take delivery of one Boeing Co <BA.N> 747
freighter and one Boeing 747-300 passenger plane in September
and November respectively after it took a 747-300 last month.
    It earlier reported a 58.7 pct increase in 1986 net profit
to 1.23 billion H.K. Dlrs and announced a final dividend of 14
cents a share.
    But Cathay Pacific recorded sharp increases in net finance
charges to 124.9 mln dlrs from 44.4 mln a year.
    A spokesman for the firm linked the rise to two aircraft
deliveries in 1986.
    However, the company said in a statement good returns from
funds placed with investment managers had partly offset higher
interest costs resulting from additional lease financing and
other borrowing.
    It added that the airline last year also saw aviation fuel
prices fall to an average 4.59 dlrs a gallon from 6.76 dlrs in
1985.
    Passengers carried by Cathay Pacific totalled 4.2 mln last
year, up from 3.85 in 1985, with the passengers kilometre
travelled rising to 14.02 billion from 12.56 billion. But
passenger load factor was down to 69.1 pct from 71.0 pct.
    The airline's cargo operations recorded growth of 21 pct in
total tonnage over the previous year and a 35.9 pct rise in
revenue to 1.79 billion dlrs.
    Cathay Pacific floated its shares in April, 1986 and is now
50.23 pct owned by Swire Pacific Ltd <SWPC.HK>, 16.43 pct by
Hongkong and Shanghai Banking Corp <HKBH.HK> and 12.5 pct by
<China International Trust and Investment Corp>.


.I 11267
.C
palm-oil;veg-oil;
.W
MALAYSIAN PALM KERNEL OUTPUT FALLS IN FEBRUARY.
    KUALA LUMPUR, March 18 - Malaysian palm kernel output fell
to an estimated 80,500 tonnes in February from a revised 83,231
(originally 83,700) in January and 98,393 in February 1986, the
Palm Oil Registration and Licensing Authority said.
    Palm kernel stocks dropped to an estimated 45,870 tonnes in
February from a revised 55,693 (65,100) in January and 85,595
in February last year, it said.


.I 11268
.C
earn
.W
******Morgan Grenfell 1986 pretax profit 82.19 mln stg vs 68.82 mln.
Blah blah blah.

.I 11269
.C
earn
.W
<MORGAN GRENFELL GROUP PLC> 1986 YEAR.
    LONDON, March 18 -
    Shr basic 39.2p vs 36.0p
    Shr fully diluted 37.2p vs 34.3p
    Div 7.0p making 10.5p vs 8.5p
    Pretax profit 82.19 mln stg vs 68.82 mln
    Tax 27.25 mln vs 27.42 mln
    Minority interest 986,000 debit vs 124,000 credit
    Extraordinary items 411,000 credit vs 219,000 debit


.I 11270
.C
money-fx;yen;
.W
GLOBAL TRADING IN YEN BOND FUTURES EXPECTED SOON.
    By Yoshiko Mori, Reuters
    TOKYO, March 18 - Global trading of yen bond futures is
just around the corner and they are expected to be listed soon
on the London International Financial Futures Exchange (LIFFE)
and the Chicago Board of Trade (CBOT), bond managers said.
    "Internationalisation of the yen through expansion of
overseas portfolios in yen assets is the key to the success of
global trading of yen bond futures," said Katsuyuki Okayasu,
general manager of Yamaichi Securities Co Ltd's bond division.
    "But Tokyo-based orders are necessary for a primary stimulus
for the LIFFE yen bond futures market," said Tetsuya Dezuka,
deputy general manager of the money market section of New Japan
Securities Co Ltd, one of the most active yen bond brokers in
London.
    Healthy growth of yen bond futures markets depends
basically on substantial liquidity in cash yen bond markets
overseas and on the yen becoming attractive to traders there,
dealers said.
    Outstanding yen cash bonds worldwide stand at around
140,000 billion yen, with most held in Japan, they said.
    An agreement between CBOT and LIFFE in early February on
mutual settlements is expected to link U.S. Treasury bond
futures trading in London and Chicago, enabling a continuous
12-hour session, bond managers here said, adding the move was
made with yen bond futures trading in mind.
    LIFFE is preparing for an early listing of yen bond futures
after receiving approval from Japan's Finance Ministry last
December.
    But futures markets will never take root unless they are
backed by substantial liquidity in cash bond markets, dealers
said.
    Daily transactions in the London yen cash bond market now
stand at 200 to 300 billion yen, but the extent of investor-
linked transactions is unknown, securities bond managers said.
    "Japanese corporations have been actively setting up their
financing companies in London, suggesting they increasingly are
engaging in, not only fund raising, but management there,"
Dezuka said.
    The steep increase in the number of branches of Japanese
securities houses in London and the growing numbers of U.S. And
U.K. Brokers coming to Tokyo has helped the London market's
growth, dealers said.
    Internationalisation of the yen is also likely to be
promoted by yen bond trading in Chicago and New York later this
year, securities managers said.
    The recent removal of a key regulatory obstacle by the U.S.
Securities and Exchange Commission will allow the CBOT to apply
to the Commodity Futures Trading Commission for a yen bond
futures contract, they said.
    The ruling removed a regulation which prohibited trading
futures of designated foreign government debt securities not
located in the issuing country.
    Fundamental Brokers Inc, a major U.S. Brokers' broker, has
decided to launch yen bond broking on its display system in New
York as early as April.
    CBOT's start of an evening session, planned for the end of
April, will also multiply yen bond futures trading, a Nomura
Securities Co Ltd bond manager said. But there are still
obstacles to trading on the London market.
    "Problems concerning cash bond delivery and clearing are
major obstacles for an early launching at LIFFE," said Koki
Chiyojima, deputy general manager of Nikko Securities Co Ltd's
bond administration division.
    Nikko Securities Co Ltd, one of the big four Japanese
securities houses, is responsible for corresponding with LIFFE
on these matters.
    Japan's Finance Ministry will start issuing bonds with
coupon payment of either March and September, or June and
December from April 1, matching futures delivery months.
    The ministry now pays coupons in January, June, July and
December. When delivery months and coupon payments do not
match, a 20 pct withholding tax is imposed on interest earned
by non-resident bond holders, a deterrent to LIFFE, securities
managers said.
    LIFFE is likely to wait until the outstanding amount of
bonds with matching months increases to over several billion
yen, bond managers said.
    These bonds will be used for deliveries, as they are
expected to be the cheapest deliverable issues due to low
interest rates, they said.
    Market participants here expect a clearing organisation to
be set up by the time they have substantial deliverable cash
issues, making overseas listings probable in the latter half of
1987.


.I 11271
.C
earn
.W
HENDERSON LAND DEVELOPMENT CO LTD <HNDH.HK>.
    HONG KONG, March 18 - Six months to Dec 31.
    Shr 16 H.K. Cents vs 11
    Interim div seven cents vs five
    Net 211.03 mln dlrs vs 138.69 mln
    Turnover 583.83 mln dlrs vs 441.04 mln
    Note - Dividend payable May 4, books close April 21 to 27.


.I 11272
.C
money-fx;interest;
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, March 18 - The Bank of England said it had invited
an early round of bill offers from the discount houses after
forecasting a shortage in the system of around 1.1 billion stg.
    Money market dealers speculated that the central bank could
be taking the opportunity to signal a reduction in U.K. Base
lending rates by cutting the rates at which it intervenes in
the discount market.
    Most operators are expecting a base rate cut today,
possibly of one point, following yesterday's budget in which
the U.K. Public sector borrowing target for 1987/88 was slashed
by three billion stg.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 1.11 billion stg while a rise in note circulation and
bankers' balances below target will take out around 120 mln stg
and 20 mln stg respectively.
    Partly offsetting these outflows, exchequer transactions
will add some 140 mln stg to the system today.


.I 11274
.C
acq
.W
SINGAPORE GOVERNMENT TAKES OVER GOODWOOD SHARES.
    SINGAPORE, March 18 - The Singapore government has taken
over 82 mln dlrs worth of Goodwood Park Hotel Ltd shares and
loan stock certificates belonging to the company's chairman,
Khoo Teck Puat, banking sources said.
    Khoo is a major shareholder of the <National Bank of Brunei
Bhd> (NBB), which closed in November after the Brunei
authorities alleged 90 pct of its loans of 1.3 billion Brunei
dlrs had been extended to Khoo-related firms without
documentation or guarantee.
    The Goodwood securities are now held by the Commercial
Affairs Investigation Department, the banking sources said. The
department declined to comment.
    The government move is aimed at protecting Goodwood's
minority shareholders and securing Goodwood deposits at the
NBB, the banking sources said.
    Goodwood had a total of 87.3 mln dlrs in fixed deposits,
bank balances and accrued interest due from NBB as of last
November, according to Goodwood's annual report.


.I 11275
.C
interest
.W
******BANK OF ENGLAND SIGNALS HALF POINT CUT IN SHORT TERM RATES - DEALERS.
Blah blah blah.

.I 11277
.C
interest
.W
******BANK OF ENGLAND SAID IT INVITED BORROWINGS AT 10 PCT LATER TODAY.
Blah blah blah.

.I 11278
.C
interest
.W
******BARCLAYS BANK SAID ITS CUTTING BASE LENDING RATE TO 10 PCT PCT FROM 10.5 PCT.
Blah blah blah.

.I 11279
.C
interest
.W
******NATIONAL WESTMINSTER BANK SAID IT CUTTING BASE RATE TO 10 PCT FROM 10.5 PCT.
Blah blah blah.

.I 11281
.C
acq
.W
TOYOTA MOTORS SIGNS PURCHASE AGREEMENT WITH PNB.
    MANILA, March 18 - The state-owned Philippine National Bank
(PNB) will fund Toyota Motor Corp's <TOYO.T> planned purchase
of its bankrupt former local partner's manufacturing facilities
for at least 193 mln pesos, a bank official told reporters.
    Toyota has informed the Philippine government it plans to
produce cars again here in joint venture with a local partner.
    It proposes to invest about 400 mln pesos in the
manufacture of car spare parts and other items, and generate
about 100 mln pesos in export earnings over five years.
    The banker said today a letter of intent was signed three
weeks ago but the sale requires approval from government
agencies charged with selling private sector assets taken over
by state-owned banks.
    Official sources said Toyota's application was likely to be
approved.
    Toyota severed ties with its Philippine partner of 20
years, <Delta Motor Corp>, in 1984 because the local company
was suffering financial difficulties. PNB later foreclosed on
Delta's assets.


.I 11282
.C
interest
.W
BANK OF ENGLAND INVITES BORROWING AT 10 PCT.
    LONDON, March 18 - The Bank of England said it had invited
those discount houses wishing to use borrowing facilities to do
so at 1430 GMT today at a rate of 10 pct for 14 days.
    This compares with the Bank's present band one dealing rate
of 10-3/8 pct.
    The Bank of England's announcement was quickly followed by
Barclays Bank and National Westminster Bank which announced a
half-point cut in their base rates to 10 pct from 10-1/2 pct.
    Dealers said the lowering in base rates had been widely
expected following yesterday's U.K. Budget in which Chancellor
of the Exchequer Nigel Lawson announced a three billion stg cut
in the Government's public sector borrowing target for 1987/88
to four billion stg.
    Many in the market had expected a full one point cut in
base rates today but some were not surprised by the
authorities' caution, dealers added.


.I 11284
.C
wpi
.W
GERMAN PRODUCER PRICES FALL 0.3 PCT IN FEBRUARY.
    WIESBADEN, March 18 - West German producer prices fell 0.3
pct in February from January and were 4.2 pct below prices in
February last year, the Federal Statistics Office said.
    In January, producer prices rose 0.2 pct from December, the
first monthly rise since October 1985, but they were down 4.4
pct from a year earlier.
    The Statistics Office said light heating oil producer
prices fell 22 pct in February from January while heavy heating
oil prices fell 24 pct.


.I 11285
.C
earn
.W
HOLZSTOFF AG <GHOZ.BS> 1986 YEAR.
    BASLE, March 18 - Net profit 25.5 mln Swiss francs vs 22.2
mln
    Turnover 717 mln vs 739 mln
    Cash flow 75.4 mln vs 58.1 mln
    Proposed dividend 70 francs vs same
    Note - Company plans one for two rights issue of 40,000
participation certificates of nominal 50 francs. Conditions not
yet set.


.I 11286
.C
acq
.W
VEBA SHARE PLACEMENT STILL EXPECTED THIS MONTH.
    BONN, March 18 - The sale of the government's 25.55 pct
stake in VEBA AG <VEBG.F> is still expected this month, banking
sources closely linked with the transaction said.
    A spokesman for the Finance Ministry said no exact date had
yet been set for the privatisation, which the government has
tabled for the second half of March. However, he added a
scandal at Volkswagen AG <VOWG.F>, VW, over currency losses "has
nothing to do" with the timing of the VEBA sale.
    Finance Minister Gerhard Stoltenberg has said the sale of
the Federal government's stake in VW, originally scheduled for
later this year, may be delayed because of the currency affair.
    A banker involved in the VEBA placement said "Nothing has
changed in the planning. I still presume that it will take
place in the second half of March."
    This banker said there would be no reason to postpone the
issue of the 10 mln VEBA shares for a few days. He added that
the consortium which is arranging the deal had completed its
preparatory work, although the price had not been decided.
    The VEBA share has been weaker ahead of the placement but
West German stocks have been generally bearish and news of the
VW scandal last week put further pressure on the market.


.I 11288
.C
ipi
.W
SOVIET ECONOMIST SAYS PRODUCTION FIGURES PADDED.
    MOSCOW, March 18 - A leading Soviet economist said the
practice of padding figures was significantly inflating the
country's industrial production data.
    "According to the information of state monitoring organs,
the padding of figures makes up one-and-a-half to three per
cent of the volume of production," Alexei Sergeyev told the
official newspaper Sovetskaya Rossiya.
    "In my opinion, it is significantly higher," Sergeyev, who
works at the Economics Institute of the Soviet Union's Academy
of Sciences, said.
    Most Western economists have for years allowed for a
certain padding of figures when analysing Soviet statistics for
industrial production.
    Sergeyev said about 600 mln roubles was lost annually in
raw material industries by paying wages and bonuses for work
which was not in fact performed.
    He said the elimination of figure-padding and other
malpractices would save billions of roubles and would pay for
the Soviet Union's social development program up to the year
2000.


.I 11289
.C
earn
.W
SONY FORESEES CONTINUED SLUMP IN EARNINGS.
    TOKYO, March 18 - Sony Corp <SNE.T> group net income is
expected to be down 65 pct for the five months ending March 31
from the same period a year ago at around 10 billion yen, if
the yendollar rate remains at the present level, managing
director Tsunao Hashimoto told a press conference.
    Sony will have an irregular five-month business term ending
March 31, as its financial year will be changed to run from
April 1 to March 31 from the current October 31 year end.
    Group sales in the same period are estimated at about 550
billion yen, down five pct from a year earlier, he said.
    The company earlier reported net income of 7.65 billion yen
in the three month period ended January 31, down 59.2 pct from
a year earlier, on sales of 343.06 billion, down 6.3 pct.
    The gloomy profits and sales resulted from the yen's recent
appreciation against the dollar and a sharp drop in market
prices due to severe sales competition at home and abroad.
    The yen rose 26 pct to an average of 159 yen to the dollar,
reducing the company's total sales in the three month period by
40 billion yen, Hashimoto said.
    Sales of 8-mm video camera/recorders totalled 300,000 units
in the three months, unchanged from a year earlier, while
Beta-format video tape recorders (vtrs) sales fell to 300,000
from 350,000. Sales of compact disc players rose to 450,000
from 300,000 and those of the Walkman rose to 2.25 mln from
1.30 mln but colour television sales fell to 950,000 from one
mln due to lower exports to China.
    Sales of 8-mm vtrs had already exceeded Beta-format vtrs
sales since the beginning of fiscal 1986, Hashimoto said.
Overseas sales accounted for 68.2 pct of the total in the three
months compared with 71.3 pct a year earlier.
    Overseas production will account for 35 pct of its total
production in 1990 from the present 20 pct.
    Hashimoto also said parent current profit in the five-month
period is estimated at around 17 billion yen, down 33 pct from
a year earlier, on sales of 400 billion, down 12 pct.
    Sony is hoping to retain at least 1985/86 levels of group
net profits and sales in the new financial year starting April
1 1987, he added. The company made 41.9 billion yen group net
profit in the year ended November 31 1986, down 42.6 pct from a
year earlier, on sales of 1,325 billion, down 6.7 pct.


.I 11295
.C
acq
.W
KLM DENIES PRESS REPORT OF AIR ATLANTA TAKEOVER.
    AMSTERDAM, March 18 - NV KLM Royal Dutch Airlines <KLM.AS>
is "absolutely not" negotiating a takeover of U.S. Regional
carrier Air Atlanta, a KLM spokeswoman said in a comment on an
article in the leading Dutch evening paper NRC Handelsblad.
    "U.S. Law requires that at least 75 pct of shares in a U.S.
Airline be owned by American firms or persons," the spokeswoman
added.
    The newspaper said that Air Atlanta, which flies to 11 U.S.
Cities, has a fleet of five Boeing jets with passenger capacity
of 110 and employs 400 people, is making losses.
    She said KLM had started talks with Vendex International NV
<VENN.AS> on their jointly owned courier service XP Express
Parcel Systems, but declined to confirm an NRC Handelsblad
report saying it wanted to buy the Vendex stake in XP.
    KLM said last week it is negotiating a minority stake in
British courier service <IML Air Services Group Ltd>, a
subsidiary of British and Commonwealth Shipping Plc <BCOM.L>,
to strengthen its position in the fast-growing worldwide
door-to-door delivery market.
    The KLM spokeswoman said she expected further announcements
about the talks with Vendex to be made early next week.


.I 11297
.C
gnp
.W
BELGIAN BANK SAID TO SEE SLOWER GROWTH.
    BRUSSELS, March 18 - An internal report produced by the
Belgian National Bank foresees the country's gross national
product growth falling in 1987 to 1.0 pct from 2.3 pct in 1986,
the independent newspaper Le Soir said.
    A National Bank spokesman said the newspaper article was
basically correct, but that the report was produced six weeks
ago and figures were therefore to some extent out of date.
    The government's planning bureau predicted growth of 0.9
pct this year in a study published last month.


.I 11298
.C
cpi
.W
SPAIN'S INFLATION RISES 0.4 PCT IN FEBRUARY.
    MADRID, March 18 - Spain's consumer price index rose 0.4
pct in February after increases of 0.7 pct the previous month
and 0.4 pct in February last year, National Statistics
Institute figures show.
    Year-on-year inflation was six pct compared with the
government five pct target for 1987. It rose 8.3 pct last year.


.I 11299
.C
grain;corn;
.W
TAIWAN BUYS 462,000 TONNES OF U.S. MAIZE.
    TAIPEI, March 18 - The joint committee of Taiwan's maize
importers awarded contracts to five U.S. Companies to supply a
total of 462,000 tonnes of maize for delivery between May 10
and October 10, a committee spokesman said.
    Cigra Inc won a contract for a cargo of 56,000 tonnes,
priced at 79.41 U.S. Dlrs per tonne fob pacific northwest port,
for delivery on July 5 and 20.
    Continental Grain Co of New York received three shipments,
totalling 143,000 tonnes, price ranging from 90.95 to 95.75
U.S. Dlrs per tonne c and f Taiwan for delivery between May 10
and October 10.
    Cargill Inc of Minnesota took two shipments, totalling
83,000 tonnes priced between 92.00 and 92.93 U.S. Dlrs per
tonne c and f Taiwan for September 5-20/September 10-25
delivery. United Grain Corp of Oregon won three contracts to
supply 93,000 tonnes priced from 92.32 to 93.19 U.S. Dlrs per
tonne c and f Taiwan for delivery between May 10 and July 30.
    Garnac Grain Co Inc of New Jersey received two shipments,
totalling 87,000 tonnes at 88.90 to 92.29 U.S dlrs c and f
Taiwan for delivery between July 10 and August 10.


.I 11307
.C
money-fx;stg;
.W
******LAWSON SAYS HE IS CONTENT WITH CURRENT STERLING EXCHANGE RATE.
Blah blah blah.

.I 11311
.C
interest
.W
******LAWSON SAYS HE FAVOURS GRADUAL APPROACH TO CUTS IN U.K. INTEREST RATES.
Blah blah blah.

.I 11312
.C
money-fx;interest;
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP.
    LONDON, March 18 - The Bank of England said it revised up
its estimate of the deficit in the system today to 1.3 billion
stg from 1.1 billion.
    The Bank has not provided any assistance to the market so
far today but earlier invited the discount houses to use their
borrowing facilities at 1430 GMT today and set the terms at 10
pct for 14 days.


.I 11313
.C
money-fx;interest;
.W
LAWSON HAPPY WITH STERLING, BACKS LATEST RATE CUT.
    By Sten Stovall, Reuters
    LONDON, March 18 - Chancellor of the Exchequer Nigel Lawson
said he was content with the current level of sterling and
welcomed today's announcement of a further half point cut in
British bank base lending rates to 10 pct.
    However, he said he wanted to see a gradual approach to
declines in domestic U.K. Interest rates, although optimism in
financial markets might push for big moves quickly.
    He told a briefing of economic journalists that "I don't
think we should rush anything." Lawson stressed the themes of
"gradualism and steadiness" as economic policy.
    Lawson acknowledged that today's fall in interest rates
were in response to his budget for fiscal 1987/88, unveiled
yesterday to Parliament and which set a lower target for the
key Public Sector Borrowing Requirement (PSBR) of 1.0 pct of
GDP.
    Lawson said the two recent cuts in base rates, both made
this month in the form of half percentage point declines, were
"perfectly consistent" with monetary conditions now in Britain.
    He supported that by saying the narrow M0 money supply
aggregate was "safely inside" its flucuation band of two to six
pct set for both 1986/87 and 1987/88. In his budget, Lawson set
no explicit target range for the broader sterling M3.
    Turning to the question of Britain eventually joining the
exchange rate mechanism of the European Monetary System (EMS),
Lawson repeated that "it is most unlikely we will enter before
the next election."
    He said Britain was keeping the subject of full EMS
membership under constant review. But he would not indicate
what the chief considerations for this were for the government.
    Prime Minister Margaret Thatcher late last year said a
decision on whether or not to join depended on the strength of
the U.K. Economy. But she later said such a move depended on
other EMS countries scrapping residual capital controls.
    Although Lawson denounced what he said was "the current wave
of election fever" in Britain, he added:  "It is more likely that
there will be an election this year" than not.
    He said he supported an early election only because it
would clear the air. "Ideally, we (the government) should have a
full term," but events could force a premature poll, Lawson
said.
    The government, which has been in power since 1979, must
call an election by June 1988. Speculation is rising for either
a June or an early autumn election, political sources said.
    The decision to cut basic tax by only two pence in 1987/88
"was the right balance, economically and politically," he said.
    Lawson's decision to restrict the fall in the standard rate
of tax to two-pence surprised many analysts, who had predicted
that with Treasurys coffers full of tax revenue would have
allowed the government to reach its goal of 25 pct in one move.
    But it was being praised today by political analysts as a
shrewd move which, while advancing towards that aim, could not
be seized upon by opposition parties as overtly trying to bribe
the electorate.
    Lawson told journalists he had been surprised by how much
the PSBR had undershot his original assumption of 7.1 billion
stg for 1986/87 -- by some three billion stg.
    Returning to changing levels of interest rates, Lawson
stressed that "they are not an objective (for the government) -
they are an instrument of policy." Consequently the Treasury had
no precise target for domestic borrowing levels, he said.
    But "there may be interest rate consequences" from changes in
the level of government borrowing, he added.
    Lawson said he did not think that the U.K.'s relatively
high level of real interest rates had hurt investment in
Britain.
    He said conditions created by London's role as a leading
financial centre had caused sterling interest rates to be
higher in real terms than in other countries.
    Three factors had caused the higher level in relative
interest rates in Britain, Lawson said.
    First, control of credit in Britain rested on interest
rates alone, due to the freedom of its financial markets.
    He said the second reason was political uncertainty caused
by proposed spending plans of the opposition Labour Party.
     Thirdly, he said "we do not have as long a track record of
low inflation" as did the U.S., Japan and West Germany.
    Lawson foresaw London becoming the world's pre-eminent
financial centre, because it was more international in
character and more favourably placed in time zones than New
York or Tokyo.


.I 11315
.C
acq
.W
DIXONS HAS 56 PCT OF CYCLOPS CORP.
    LONDON, March 18 - Dixons Group Plc <DXNS.L> said its
tender offer for all of the common shares in <Cyclops Corp> of
the U.S. Expired at midnight yesterday and that it had accepted
approximately 2.3 mln shares in the company at 90.25 dlrs each.
    This represents just over 54 pct of the outstanding shares
on a fully diluted basis. But including shares already owned,
Dixons now holds a total of 56 pct of the fully diluted
outstanding shares.
    The company said it is now entitled to subscribe for all
the authorised but unissued and unreserved shares of common
stock of Cyclops, which total some 5.4 mln shares, at 90.25
dlrs each.
    Dixons said it has waived its condition that 80 pct of the
fully diluted outstanding shares be validly tendered and not
withdrawn.
    Dixons launched the agreed 384 mln dlr offer on February 17
this year in the wake of its unsuccessful battle to take over
the U.K. Retail store chain Woolworth Holdings Plc <WLUK.L>.
    Dixons shares were last quoted at 390p, up on last night's
close of 380p.
    On Friday, <CYACQ Corp>, an investor group formed by
Audio/Video Affiliates Inc <AVA> and Citicorp <CCI>, said it
would increase the price it was offering for all Cyclops shares
to 92.50 dlrs from 80.00 dlrs each if Cyclops would provide it
with confidential information given to Dixons and if it were
satisfied that any rights Dixon might have to recover fees or
expenses from Dixons or to buy Cyclops stock would be rescinded
or proved invalid.
    Audio/Video's offer is scheduled to expire March 20.


.I 11317
.C
ship;crude;
.W
IRAQ SAYS IT ATTACKS TWO SHIPS IN GULF.
    BAGHDAD, March 18 -  Iraq said its warplanes hit two ships
off the Iranian coast in attacks last night and early today.
    The planes "dealt accurate and effective blows to both
maritime targets before they returned safely to base," a
military spokesman told the Iraqi new agency INA.
    There was no immediate confirmation of the attacks from
Persian Gulf shipping sources.
    The last confirmed Iraqi attack on shipping was on March 8,
when an Iranian tanker was hit by a missile south of Iran's
Kharg island oil export terminal.
    Gulf shipping sources yesterday reported an Iranian warship
had set the Cypriot supertanker Pivot on fire with a missile.
    They said there were no injuries on board and the ship
headed for the Gulf Emirate of Fujairah under its own power
after the fire was put out.
    The Pivot was the 18th ship hit this year in the maritime
extension of the 6-1/2 year-old Iran-Iraq war.


.I 11318
.C
cocoa
.W
******ICCO delegates accept principles of buffer stock compromise as negotiation base.
Blah blah blah.

.I 11319
.C
interest;gnp;bop;cpi;trade;
.W
NEW ZEALAND ECONOMY FORECAST TO IMPROVE IN 1987/88.
    WELLINGTON, March 18 - New Zealand's inflation and interest
rates should decline and the balance of payments improve
significantly in the fiscal year to the end of March 1988, the
Institute of Economic Research (NZIER) said.
    The independent institute said in its quarterly March issue
that it was also revising its fiscal 1987 real gross domestic
product (GDP) forecast to a fall of 0.5 pct against the one pct
drop forecast in December.
    Government figures show GDP grew at an annual 1.8 pct in
the quarter to September and 3.4 pct in the June quarter.
    The NZIER said the sharp improvement in the June and
September quarters was due mainly to a new tax structure and
the introduction of a 10 pct value-added goods and services tax
and is not expected to continue in the second half of 1986/87.
    The government's tight fiscal position is not expected to
change, it said.
    Annual inflation, measured by the consumer price index, is
forecast to fall to nine pct by next March from 18.2 pct in
calendar 1986, it said.
    "Falling inflation is likely to give significant scope for
reductions in nominal interest rates; real interest rates are
also expected to ease (albeit slightly) as the balance of
payments deficit and hence the call on overseas capital, falls
away," the NZIER said.
    Short-term interest rates are forecast to remain between 20
and 25 pct until the June quarter, but will decline over the
second half of 1987/88 to between 16 and 18 pct. Long-term
rates are expected to fall to between 14 and 16 pct.
    Five year government bond rates are currently 18.40 pct and
the key indicator 30-day bank bills 26.53 pct.
    The local dollar is expected to depreciate steadily in the
early part of the coming year and, by next March, reach 57.5 on
the Reserve Bank's trade weighted index, which is based on a
basket of currencies. The index now stands at around 66.4.
    "A marked improvement in the balance of payments is
forecast," the NZIER said. "The current account deficit is
expected to fall from 7.5 pct of GDP in 1985/86 to 4.5 pct in
1986/87 and 2.5 pct in 1987/88."
    The current account deficit is forecast to shrink to 1.32
billion N.Z. Dlrs in 1987/88 from 2.40 billion in 1986/87 and
3.33 billion in 1985/86.
    The 1987/88 budget deficit is forecast to be 2.8 billion
dlrs against an expected 2.9 billion dlrs in 1986/87 and 1.87
billion in 1985/86.
    This compares with the government's 1986/87 deficit figure
of 2.92 billion against an earlier forecast of 2.45 billion.
    "Conditions in the coming year are sufficiently subdued to
contribute to marked improvements in both the balance of
payments and the rate of inflation ...," the NZIER said.
    "Overall, these are significant gains for the New Zealand
economy and, if they continue to be improved upon, bode well
for future prospects."


.I 11320
.C
cocoa
.W
ICCO MEMBERS ACCEPT BUFFER STOCK PRINCIPLES.
    LONDON, March 18 - International Cocoa Organization (ICCO)
producers and consumers accepted the principles of a compromise
proposal on buffer stock rules as a basis for further
negotiation, delegates said.
    The buffer stock working group then asked ICCO Executive
Director Kobena Erbynn, who wrote up the draft compromise, to
flesh out details of the principles with the assistance of a
representative group of delegates, they said.
    The working group broke up for the day, into a smaller
group of five producers and five consumers to discuss
administrative rules and into the group headed by Erbynn to
hammer out buffer stock rules details, delegates said.
    Delegates said many differences of opinion still have to be
ironed out. "Whenever we start getting into details the clouds
gather," one delegate said.
    Erbynn is likely to present fleshed out details of the
buffer stock rules proposal to the working group early
tomorrow, delegates said.
    The principles of the draft proposal included establishing
an offer system for buffer stock purchases rather than a posted
price system, a limit to the amount of non-ICCO member cocoa
that can be bought, and differentials to be paid for different
varieties of cocoa comprising the buffer stock, delegates said.


.I 11323
.C
acq
.W
AFG <AFG>, WAGNER/BROWN BID FOR GENCORP <GY>.
    NEW YORK, March 18 - <General Partners>, controlled by
privately-held Wagner and Brown and by AFG Industries Inc, said
it has started a tender offer for all common shares of GenCorp
Inc and associated defensive preferred share purchase rights
for 100 dlrs a share.
    GenCorp stock closed yesterday in composite tape trading at
90.50 dlrs a share, up two dlrs on the day.
    In a newspaper advertisement, General Partners said the
offer and withdrawal rights expire April 14 unless extended.
    General Partners said the offer is conditioned on receipt
of sufficient financing to buy all shares on a fully diluted
basis and receipt of enough shares to give General Partners at
least 51 pct voting power, again fully diluted.
    It said the offer is also conditioned on GenCorp redeeming
the defensive rights or General Partners being satisfied that
the rights have been invalidated and General Partners obtaining
from the Federal Communications Commission a special temporary
authorization allowing completion of the acquisition of GenCorp
shares.
    General Partners said it would set up voting trust
arrangements pending review of its long-form application for
FCC approval of its acquisition of control of GenCorp's
broadcasting subsidiary.
    The partnership said the offer is further conditioned on
GenCorp management withdrawing its proposals to amend the
company's articles of incorporation and code of regulations to
provide for an increase in authorized common shares, a
classified board of directors and the elimination of cumulative
voting.  The latter two changes would make it harder for
minority shareholders to elect directors.
    General Partners said it is asking GenCorp for its
shareholder lists for help in disseminating the offer.
    GenCorp has about 22.3 mln shares outstanding, making the
value of the offer about 2.23 billion dlrs.
    Last fall, AFG and Wagner and Brown offered to acquire
<Lear Siegler Inc> for about 1.44 billion dlrs but withdrew the
offer when higher bids emerged and due to complications of the
Tax Reform Act of 1986.  Lear Siegler eventually went private
for 1.66 billion dlrs.
    GenCorp is involved in tire and plasticmaking and aerospace
as well as broadcasting.  The company faces challenges to its
two television and 12 radio station licenses, partly becuase it
failed to inform the FCC about allegedly improper foreign
payments and political contributions.
    GenCorp has agreed to sell its New York-area television
station WOR to MCA Inc <MCA> for 387 mln dlrs and its Los
Angeles station KHJ to Walt Disney Co <DIS> for 217 mln dlrs.
An investor group challenging the Los Angeles license would
also receive 103 mln dlrs from Disney.
    For the year ended November 30, GenCorp earned 130 mln dlrs
on sales of 3.10 billion dlrs.
    A GenCorp spokesman said the offer came as a surprise and
the company was not yet in a position to comment on the bid.


.I 11325
.C
veg-oil;sun-oil;
.W
EGYPT REJECTS VEG OIL OFFERS, TO RETENDER.
    LONDON, March 18 - Egypt rejected all offers at a vegetable
oil import tender yesterday for unspecified amounts of
sunflowerseed oil and/or cottonseed oil, traders said. It has
asked for a renewal of offers on March 24.
    Exporters said they were not prepared to offer material on
Egypt's new landed contract terms which include a clause, "free
from radioactive contamination." Offers submitted were on old
contract terms, all of which were rejected.


.I 11326
.C
crude
.W
TEXACO <TX> TO CEASE POSTING TEXAS OIL PRICE.
    NEW YORK, MARCH 18 - Texaco Refining and Marketing, an
operating subsidiary of Texaco Inc, said it would cease to post
crude oil prices for West Texas crudes at the end of this month
following a decision to discontinue purchase of crude oil from
leases, a Texaco spokesman in Houston said.
    But it will continue to purchase quantities of U.S. and
foreign crude oil for use in its refinery system, he added.
     The spokesman also said Texaco Trading and Transport Inc
would continue to acquire and market Texaco lease production as
well as other lease production. The company will continue to
post a Louisiana price, it said.


.I 11327
.C
cocoa
.W
IVORY COAST MINISTER DELAYED FOR COCOA TALKS.
    LONDON, March 18 - Ivorian Agriculture Minister Denis Bra
Kanon, chairman of the International Cocoa Organization (ICCO)
council, will not be able to open the council session here
tomorrow, an Ivorian ICCO delegate told Reuters.
    He will arrive sometime later during the meetings here, the
delegate said. The council session will be chaired instead by
ICCO vice chairman Sir Denis Henry, the delegate from Grenada,
ICCO officials said.
    Ivorian officials last week said Bra Kanon was due to
return home for funeral ceremonies for a sister of Ivorian
President Felix Houphouet-Boigny March 19-22.


.I 11329
.C
gnp
.W
******U.S. REAL GNP ROSE REVISED 1.1 PCT IN 4TH QTR INSTEAD OF 1.3 PCT RISE.
Blah blah blah.

.I 11330
.C
gnp
.W
******U.S. GNP PRICE DEFLATOR ROSE 0.7 PCT IN 4TH QTR, UNCHANGED.
Blah blah blah.

.I 11332
.C
earn
.W
MATRIX SCIENCE <MTRX> SETS STOCK SPLIT.
    TORRANCE, Calif., March 18 - Matrix Science Corp said its
board declared a two-for-one stock split and a six-cent per
share (pre stock split) dividend, payable May 7 to stockholders
of record April 16.
    The company said the dividend is in addition to the ten cts
per share dividend paid January 2, 1987, making the post stock
split annual dividend eight cts per share.


.I 11333
.C
earn
.W
SEA GALLEY STORES INC <SEAG> 4TH QTR DEC 28 LOSS.
    MOUNTLAKE TERRACE, Wash., March 18 -
    Shr loss 69 cts vs loss 1.45 dlrs
    Net loss 2,015,000 vs loss 4,268,000
    Revs 16.6 mln vs 16.9 mln
    Year
    Shr loss 1.21 dlrs vs loss 59 cts
    Net loss 3,514,000 vs loss 1,839,000
    Revs 58.8 mln vs 61.4 mln


.I 11334
.C
veg-oil;coconut-oil;
.W
COCONUT OIL CONTRACT TO CHANGE - DUTCH TRADERS.
    ROTTERDAM, March 18 - Contract terms for trade in coconut
oil are to be changed from long tons to tonnes with effect from
the Aug/Sep contract onwards, Dutch vegetable oil traders said.
    Operators have already started to take account of the
expected change and reported at least one trade in tonnes for
Aug/Sept shipment yesterday.
    The Federation of Oils Seeds and Fats Associations, FOSFA,
in London said it had previously advised traders to adopt the
metric system for coconut oil transactions to bring the
commodity into line with other vegetable oils.


.I 11335
.C
acq
.W
FAR WEST FINANCIAL <FWFP> TO BUY PROGRESSIVE.
    NEWPORT BEACH, Calif., March 18 - Far West Financial Corp
said its Far West Savings and Loan Association unit has reached
an agreement in principle to acquire all the outstanding stock
of Progressive Savings and Loan Association <PRSL>.
    Far West said it does not expect the cost of the
transaction to exceed 15 mln dlrs.
    Progressive Savings has ten branches in Southern California
and about 500 mln dlrs in assets.


.I 11338
.C
nat-gas
.W
COASTAL <CGP> SAYS TRANSAMERICAN SUIT FRIVOLOUS.
    HOUSTON, March 18 - Coastal Corp said it belives the two
billion dlr suit against it by <TransAmerican Natural Gas Corp>
in Texas state court is frivolous and without merit.
    The company said it intends toi proceed with filing a
reorganization plan for TransAmerican with the U.S. Bankruptcy
Court in Houston.
    Yesterday afternoon, the bankruptcy court issued a
temporary restraining order prohibiting TransAmerican and
Coastal from taking any action in any court that would
interfere with the jurisdiction of the bankruptcy court.
    Yesterday's bankruptcy court ruling affirmed Coastal's
rights as a TransAmerican creditor to file a reorganization
plan for TransAmerican.
    TransAmerican's suit alleges that Coastla attempted to
unlawfully gain control of TransAmerican's Texas natural gas
reserves and pipeline system.
    TransAmerican's bankruptcy proceedings began in 1983.


.I 11339
.C
money-fx;interest;
.W
BUNDESBANK SEEN STEERING STEADY MONETARY COURSE.
    By Franz-Josef Ebel, Reuters
    FRANKFURT, March 18 - The Bundesbank is likely to steer a
steady monetary course over the next few weeks and a change in
credit policies is not expected at tomorrow's regular central
bank council meeting, bank economists and dealers said.
    "There is no need for action," Hermann Remsperger, chief
economist of Berliner Handels- and Frankfurter Bank (BHF) said.
    Others noted that exchange rates are stable after last
month's Group of Six agreement in Paris and central bank money
stock growth is still well above the three to six pct target
zone, so a change in credit policies could be ruled out.
    One money market dealer said comments by Bundesbank
President Karl Otto Poehl at a private seminar in Duesseldorf
two weeks ago hinting at another interest rate cut only
indicated the Bundesbank might act if conditions changed.
    Bank economists said U.S. Pressure on West Germany to
further ease credit policies had receded since the Paris pact.
    But such demands could re-emerge if West Germany failed to
stimulate its economy enough to affect the massive U.S. Trade
deficit.
    Remsperger said continued strong money supply growth also
precluded a further cut in official interest rates.
    Central bank money stock was growing at an annualized 7.5
pct in February, unchanged from the 7.5 pct in January.
    Economists said some of the 18 members of the central bank
council were worried about the continued overshoot in the money
supply target and were bound to resist any moves to cut rates.
But Poehl played down the risk of inflation.
    Economists said the fact that money stock growth remained
stable last month was a success. Some said it was likely to
return to within the target range later this year.
    "The special factors which boosted money supply growth last
year are disappearing," one economist said.
    He said some 75 pct of the money supply increase in 1986
was caused by a sharp rise in the inflow of foreign funds.
    This trend had been reversed recently and with domestic
credit demand likely to remain at steady levels, money stock
growth was expected to narrow in the medium-term.
    These developments were increasing the Bundesbank's scope
for a rate cut in the medium-term, economists said.
    Money market dealers said period rates remained little
changed, indicating no change in credit policy was expected.
    Call money rates declined to 3.75/80 pct from 3.90/95
yesterday, with the market well stocked with liquidity.
    Dealers said call money was soft because tax payments on
behalf of customers had been less than expected so far. But
rates were likely to tighten again as soon as the full effect
of this month's major tax payment period is felt. Payments for
the federal railways bond are also likely to burden the market.
    The Bundesbank did not inject liquidity via a securities
repurchase agreement this week, but countered a tightening in
rates on Monday by injecting funds through government-owned
banks.
    Dealers said recent securities repurchase pacts had shown
the Bundesbank clearly wanted call money rates stable at 3.80.
    One dealer said, "If the central bank wanted lower interest
rates, it would first of all drive call money rates down."
    Banks remained relatively well stocked with minimum reserve
assets. They held 52.9 billion marks in minimum reserves on
Monday, averaging 53.7 billion marks over the first 16 days of
March. A requirement of around 51 billion is expected.


.I 11340
.C
gnp
.W
U.S. REAL GNP ROSE 1.1 PCT IN FOURTH QUARTER.
    WASHINGTON, March 18 - The U.S. Gross National Product,
after removing the impact of inflation, increased at a revised
annual rate of 1.1 pct in the fourth quarter, the Commerce
Department said.
    That was down from an earlier preliminary 1.3 pct rise
estimated a month ago and down from the 2.1 pct rise in the
fourth quarter of 1985.
    The final fourth quarter revision, however, left unchanged
the previous estimate of a 2.5 pct increase in GNP for all of
1986 over 1985.
    The revised estimate for fourth quarter GNP partly
reflected a downward revision in inventories to a total
decrease of 28.5 billion dlrs in the fourth quarter, the
department said.
    The revisions also indicated personal consumption spending
decreased 2.2 billion dlrs in the fourth quarter after an
increase of 39.6 billion dlrs in the third quarter.
    Exports of goods and services rose 15.3 billion dlrs after
a decline of 9.4 billion dlrs in the third quarter. Imports
decreased 700 mln dlrs in the final quarter, in contrast to an
increase of 20.9 billion dlrs in the third quarter.


.I 11341
.C
acq
.W
JAPAN TELECOM MERGER COULD INVOLVE U.K.,U.S. FIRMS.
    TOKYO, March 18 - Cable and Wireless PLC <CAWL.L> and the
Pacific Telesis group <PAC.N> may take part in a proposed
merger of two rival firms seeking to enter Japan's
international telecommunications market, a senior industry
official said.
    Fumio Watanabe, head of a telecommunications committee with
the Federation of Economic Organisations (Keidanren), told a
news conference Japanese shareholders in the two consortiums
agreed that the U.S. And British companies will be invited to
participate in the new merged firm.
    The planned linkup will satisfy Tokyo's request that only
one private company should enter the market.
    The two consortiums, <International Digital Communications
Planning Inc> (IDC) and <International Telecom Japan> (ITJ),
were set up in 1986 to compete with monopoly <Kokusai Denshin
Denwa Co> (KDD) after the market was deregulated in 1985.
    Watanabe said the Post and Telecommunications Ministry
wanted only one competitor for the time being because of the
size of the Japanese telcommunications market and that foreign
investors will only be allowed to hold a minority stake.
    He estimated the two foreign firms' share in the merged
consortium at less than three pct and added that even the
largest shareholders could own only some five pct .
    Cable and Wireless and Japanese trading house <C. Itoh and
Co.> each have a 20 pct stake in the IDC consortium while
Pacific Telesis and Merrill Lynch and Co. Inc. <MER.N> jointly
hold 13 pct .
    ITJ is headed by a rival group of trading houses. Several
firms including Toyota Motor Corp. <TOYO.T>  belong to both.
    Watanabe said progress was being made towards a merger
agreement and added that Japanese industry agreed with the
government on having only one private consortium as two
companies might invest "excessive" amounts.
    He said talks with Cable & Wireless will continue this
week.


.I 11343
.C
acq
.W
FERRUZZI NEGOTIATING EUROPEAN ACQUISITION.
    ROME, March 18 - Italy's <Gruppo Ferruzzi> is in the
advanced stages of negotiations that could result in an
acquisition worth "some hundreds of billions of lire" in the
European agro-industrial sector, a company spokesman told
Reuters.
    The spokesman declined to identify the other party or
parties involved in talks, or whether a complete takeover was
under discussion, but said an Italian newspaper report that
Ferruzzi was studying the possibility of advancing an offer for
13 European cereal processing plants owned by the U.S. Group
CPC International Inc <CPC.N> was incorrect.
    The spokesman said that possibility had been evaluated by
Ferruzzi but that the company's attention at the moment was
"decisively in another direction."
    The spokesman, responding to a report in the Italian
economic daily Il Sole-24 Ore that Ferruzzi was considering a
possible bid for the CPC plants, told Reuters his company hoped
to conclude the talks currently underway in a couple of months.
    The spokesman said that since the U.K. Government last
month blocked Ferruzzi's bid to acquire <British Sugar Plc>,
the company had been looking at other investment opportunities.


.I 11345
.C
crude
.W
MALAYSIA TO CUT OIL OUTPUT FURTHER, TRADERS SAY.
    By Yeoh May, Reuters
    SINGAPORE, March 18 - Malaysia's state oil company Petronas
will cut oil production to 420,000 barrels per day (bpd) from
May 1, trade sources said.
    Malaysia cut its 510,000 bpd target output by 10 pct last
September to support Opec moves to boost prices, and the latest
cut would reduce output by 17.5 pct from 1986's target level.
    Petronas said in February that Malaysia would maintain its
10 pct production cutback until mid-1987.
    However, the Finance Ministry said in its annual report
that Malaysia's crude oil output was expected to rise to an
average 510,000 bpd in 1987.
    The ministry's forecast assumed average 1987 crude prices
at 13 dlrs/barrel (bbl), but prices have risen enough to permit
further production cutbacks, the sources said.
    Malaysia's benchmark Tapis blend fetched above 18 dlrs/bbl
this year against a low of 10.50 dlrs/bbl in July, they said.
    Traders said further reductions by Malaysia would add to
the tight spot availabilities of Asian grades caused by reduced
Indonesian and Chinese crude output.
    The cutback will also help Malaysia maintain prices, as
there is concern some buyers want to reduce term purchases due
to the availability of cheaper alternatives, the sources said.
    In addition to term sales, Petronas has been offering two
to three 400,000 bbl spot cargoes of Malaysian crude each month
for sale through tender, the sources said.
    However, this practice is likely to dwindle given the
reduced scale of production, they said.

.I 11346
.C
acq
.W
INTERCARE <CARE> SAYS ACQUISITION TERMINATED.
    CULVER CITY, Calif., March 18 - InterCare Inc said it has
agreed to terminate the proposed acquisition of <Universal
Care> because <First Jersey Securities> has withdrawn as
underwriter for a proposed offering of InterCare securities.
    The company said the offering was to have raised 7,500,000
dlrs for working capital through the sale of equity and debt
and would have also financed the 1,897,000 dlr cash portion of
the Universal Care purchase price.  In addition, 1,700,000 dlrs
would have been used to repay debt.
    InterCare said to date it has incurred about 500,000 dlrs
in expenses in connection with the proposed offering.
    The company said to improve its working capital position,
it plans to reduce operating expenses by decreasing hours of
operation and its workforce and selling some assets.
    As of October 31, the copmpany said it had a working
capital deficit of 2,301,000 dlrs, on a pro forma basis to
include recently acquired U.S. Medical Enterprises Inc.


.I 11347
.C
earn
.W
RANK ORGANISATION CURRENT TRADING SATISFACTORY.
    LONDON, March 18 - Rank Organisation Plc <RANK.L> said
trading in the current year had continued satisfactorily taking
into account seasonal fluctuations.
    Association companies, such as <Rank-Xerox Ltd>, indicated
an improved performance, a statement issued at the annual
meeting said.
    It said it planned to spend some 15 mln stg on refurbishing
its Odeon cinema chain and the Rank Film Distributors unit was
committed to spending 20 mln to secure international
distribution rights of films.
    Investment in new activities in 1987 should continue at a
relatively high level to exploit opportunities for growth. Rank
said it did not exclude the possibility of making large as well
as small acquisitions.
    In the year to end-October, Rank reported a rise in pretax
profits to 164.1 mln stg from 136.0 mln previously.
    Rank shares firmed in morning trading to be quoted at 712p
at 1320 GMT after 697p at last night's close.


.I 11348
.C
acq
.W
******HARCOURT BRACE SETS MARCH 30 DEADLINE IN HARPER AND ROW BID.
Blah blah blah.

.I 11349
.C
ship
.W
SHIPS HELD UP AT CALCUTTA.
    BOMBAY, March 18 - Some 10 Indian ships have been held up
at Calcutta port after four days of industrial action by local
seamen, a spokesman for the shipowners' association INSA said.
    The dispute has prevented local crewmen signing on and off,
but has not affected foreign ships with international crews
docking at Calcutta, which exports tea and jute and imports
machinery, crude oil and petroleum products, the spokesman
said.
    Foreign ships may also suffer if dock workers join the
action, he said. The Shipping Corporation of India (SCI) has
asked its ships to avoid the port until the dispute is over,
National Union of Seafarers in India president Leo Barnes said.


.I 11350
.C
earn
.W
COOPERVISION INC <EYE> 1ST QTR JAN 31 NET.
    PALO ALTO, Calif., March 18 -
    Shr 3.65 dlrs vs 33 cts
    Net 82.5 mln vs 7,300,000
    Sales 94.4 mln vs 85.4 mln
    Avg shrs 22.6 mln vs 21.7 mln
    NOTE: Current year net includes pretax gain 175.2 mln dlrs
on sale of ophthalmic business and loss 17.9 mln dlrs posttax
from repurchase of debt.
    Prior year net includes 120,000 dlr loss from discontinued
operations.


.I 11351
.C
earn
.W
COOPERVISION <EYE> DELAYS ANNUAL MEETING.
    PALO ALTO, Calif., March 18 - CooperVision Inc said it has
delayed its annual meeting to June 22 from May 14 to allow its
board to review possible recapitalization options before the
meeting.
    CooperVision today reported first quarter net income of
64.6 mln dlrs, after a 175.2 mln dlr pretax gain from the sale
of its ophthalmic business to Johnson and Johnson <JNJ> for 260
mln dlrs in cash and a 17.9 mln dlr posttax charge from a debt
repurchase.  Sales were 94.4 mln dlrs.  A year earlier it
earned 7,300,000 dlrs after a 120,000 dlr loss from
discontinued operations, on sales of 85.4 mln dlrs.
    The company said an aggressive program of investment
spending to maintain or increase market shares its its two core
businesses will accelerate sales growth this year but hold back
increases in operating income in the near future.
    CooperVision said "Furthermore, until the entire net cash
proceeds from the recent sales of several of our businesses are
employed to reduce indebtedness, make strategic acquisitions
and/or are otherwise employed in relation to a possible
recapitalization of the company, recovery of net income will be
held back by the loss, particularly of the tax income, of the
(ophthalmic) pharmaceutical business sold to Johnson and
Johnson."


.I 11353
.C
earn
.W
******GREAT ATLANTIC AND PACIFIC TEA CO 4TH QTR OPER SHR 55 CTS VS 36 CTS.
Blah blah blah.

.I 11354
.C
acq
.W
MOBEX SAYS ABOUT 87 PCT OF GRANT <GTX> TENDERED.
    ANAHEIM, Calif., March 18 - Mobex Corp said 2,088,461 Grant
Industries Inc common shares, about 87 pct of the 2.4 mln
outstanding, have been tendered in response to Mobex's offer.
    The company said its offer of 7.75 dlrs a share for the
stock has been extended to 2000 EST March 23 from 2400 March 17.


.I 11355
.C
acq
.W
HARCOURT BRACE <HBJ> SETS HARPER <HPR> DEADLINE.
    ORLANDO, Fla., March 18 - Harcourt Brace Jovanovich Inc
said it has told Harper and Row Publishers Inc representatives
that it intends to withdraw its proposal to acquire Harper and
Row for 50 dlrs per share in cash if the parties have not made
satisfactory progress in discussions by the close of business
on March 30.
    Harcourt Brace said, "We do not wish to put undue pressure
on Harper and Row, but we also, in fairness to our own
shareholders, cannot allow an offer of such magnitude to lie on
the table too long."
    Harcourt said three of its senior officers and its
investment bankers met yesterday with investment bankers for
Harper and Row to discuss the Harcourt Brace offer.
    Harcourt Brace said it will only pursue the acquisition if
a mutually-satisfactory merger agreement can be negotiated.
    Last week, a group formed by Theodore Cross offered to
acquire Harper and Row for 34 dlrs per share.  The group held
about six pct of Harper and Row.
    In addition, New World Pictures Ltd <NWP>, holder of 4.5
pct of Harper and Row, had offered to discuss a merger with
Harper and Row.


.I 11356
.C
acq
.W
******DIXONS GROUP SAID IT ACCEPTS 54 PCT OF CYCLOPS SHARES IN TENDER.
Blah blah blah.

.I 11358
.C
money-fx
.W
BANKERS TRUST ISSUING STG/DLR CURRENCY WARRANTS.
    LONDON, March 18 - Bankers Trust International Ltd said it
is issuing 200,000 stg call/dlr put currency warrants at an
initial offer price of 31.25 dlrs per warrant.
    The issue is guaranteed by Bankers Trust New York Corp.
    Each warrant entitles the holder to exchange 500 dlrs for
stg at a rate of 1.60 stg/dlr and the minimum number of
warrants exercisable or tradeable is 100.
    Exercise period for the warrants will run from April 22,
1987 until March 17, 1989. Payment is due April 15, 1987.


.I 11360
.C
earn
.W
GREAT ATLANTIC AND PACIFIC TEA CO <GAP> 4TH QTR.
    MONTVALE, N.J., March 18 -
    Oper shr 55 cts vs 36 cts
    Oper net 20.7 mln vs 13.6 mln
    Sales 2.34 billion vs 1.58 billion
    Avg shrs 38.1 mln vs 37.7 mln
    Year
    Oper shr 1.82 dlrs vs 1.48 dlrs
    Oper net 69.0 mln vs 56.1 mln
    Sales 7.83 billion vs 6.62 billion
    Avg shrs 38.0 mln vs 37.8 mln
    NOTES: Results for 13 and 53 week periods ended Feb 28,
1987, and 12 and 52 week periods ended Feb 22, 1986
    Operating net excludes credits from tax loss carryforwards
of none vs 5.3 mln dlrs, or 14 cts a share in quarter and 26.0
mln dlrs, or 68 cts a share, vs 32.2 mln dlrs, or 85 cts a
share, in year
    Company had 1,200 stores inoperation at year end vs 1,045 a
year earlier


.I 11362
.C
acq
.W
******GROUP TENDERING FOR GENCORP SAYS IT HOLDS ABOUT 9.8 PCT OF GENCORP COMMON.
Blah blah blah.

.I 11363
.C
trade
.W
ROTTERDAM SIGNS COOPERATION AGREEMENT WITH TOKYO.
    ROTTERDAM, March 18 - The city of Rotterdam today signed an
agreement in principle to cooperate with the AOMI Cargo
Distribution Centre in Tokyo.
    Acting Mayor Roel den Dunnen said that cooperation between
private and public entities in the Tokyo and Rotterdam area,
and a fruitful exchange of information have a favourable
influence on the flow of goods and services between the two
countries.
    The AOMI Cargo Distribution Center, which will start
operating in October this year, signed a similar agreement with
Rotterdam's twinned-port of Seattle last September.


.I 11364
.C
lead;zinc;
.W
DAVY CORP UNIT WINS INDIA SMELTER CONTRACT.
    LONDON, March 18 - Davy McKee Ltd, a subsidiary of U.K.
Engineering and contruction company Davy Corp Plc, has been
awarded a contract worth around 15 mln stg for the design of a
zinc and lead smelter in India, a spokesman for the company
said.
    The contract is being funded by Britain's Overseas
Development Administration as part of a total grant of 73.65
mln stg to India's state-owned Hindustan Zinc Ltd.
    The grant is for the development of a major zinc and lead
mine and associated smelting complex in Rajastan, North West
India, the agency said.
    The agency said the project was expected to account for 44
pct of India's total production of zinc.
    A total 55 mln stg of the grant is allocated for the supply
of goods and services from Britain. The grant comes as part of
package announced on March 13 for Indian mineral development.
    The agency is also paying a further 31 mln stg to India's
coal sector, for the expansion of its indigenous coal
development programme, using British-designed longwall
technology.


.I 11365
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 15 MLN STG AFTERNOON HELP.
    LONDON, March 18 - The Bank of England said it had provided
the money market with a further 15 mln stg assistance. This
brings the Bank's total help so far today to 344 mln stg and
compares with the estimated shortage of around 1.3 billion stg.
    The central bank purchased bank bills outright, at the
lower dealing rates established this morning, comprising one
mln stg in band one at 9-7/8 pct and 14 mln stg in band two at
9-13/16 pct.


.I 11366
.C
interest
.W
WEST GERMAN BANKS SLOWLY CUTTING KEY SAVINGS RATES.
    FRANKFURT, March 18 - West German commercial banks are
cautiously cutting key savings and lending rates, banking
sources said. The cuts follow nearly two months after the
Bundesbank reduced leading interest rates, far longer than the
usual interim period.
    A Deutsche Bank AG <DBKG.F> spokesman said it is cutting
leading savings rate for private customers on a regional basis
by 0.5 percentage points to two pct. Dresdner Bank AG <DRSD.F>
and Commerzbank AG <CBKG.F> have initiated similar moves. Bank
fuer Gemeinwirtschaft AG <BKFG.F> cut rates 0.5 pct generally.
    The delay was partly due to commercial banks' desire to
gauge customer reaction to a similar move by regional savings
banks.
    A fall in customer savings because of lower rates could
reduce cheap refinancing available to banks, forcing them to
draw down relatively expensive funds from other sources, one
economist at the German Banking Association said.
    But the volume of savings funds may not be substantially
undercut by lower savings rates because many customers are
parking funds in savings accounts in the hope they can reinvest
them at higher yields in the future, he said.
    He said this may conflict with Bundesbank aims to move more
funds from relatively short-term deposits to longer-dated
securities to reduce strong growth in its central bank money
supply aggregate.
    The aggregate showed annualized growth of a provisional 7.5
pct in February against the fourth quarter of last year,
unchanged from January. The growth rate was outside the
expanded target range of three to six pct.
    Few banks have so far reduced lending rates to private
customers, though lending rates for corporate customers are
beginning to decline.


.I 11367
.C
earn
.W
TOYS "R" US INC <TOY> 4TH QTR FEB ONE NET.
    ROCHELLE PARK, N.J., March 18 -
    Shr 89 cts vs 68 cts
    Net 116.0 mln vs 88.1 mln
    Revs 1.17 billion vs 924.0 mln
    12 mths
    Shr 1.17 dlrs vs 93 cts
    Net 152.2 mln vs 119.8 mln
    Revs 2.44 billion vs 1.97 billion
    NOTE: net 1986 were restated to reflect three-for-two stock
split on June 27, 1986.


.I 11368
.C
earn
.W
MEASUREX CORP <MX> 1ST QTR NET.
    CUPERTINO, Calif., March 18 -
    Shr 34 cts vs 27 cts
    Qtrly div six cts vs 4.5 cts prior
    Net 6,448,000 vs 4,969,000
    Revs 51.1 mln vs 44.7 mln
    Avg shrs 19.1 mln vs 18.7 mln
    NOTE: pay for dividend was March 11 to shareholders of
record on Feb 20.


.I 11369
.C
earn
.W
PALMER LEWIS CO INC <LWIS> 4TH QTR NET.
    AUBURN, Wash., March 18 - Qtr ends Jan 31
    Shr three cts vs one cent
    Qtrly div seven cts vs seven cts prior
    Net 106,185 vs 28,871
    Revs 46.9 mln vs 30.3 mln
    12 mths
    Shr 33 cts vs 23 cts
    Net 1,306,595 vs 878,484
    Revs 187.2 mln vs 140.8 mln
    NOTE: effective July One, 1986, the company acquired the
outstanding stock of Western American Forest Product Inc for
cash and convertible debentures. the acqustion is accounted for
as a purchase and consolidated statements include Western's
results of operations from July One, 1986.
    payout for dividend is may six to stockholders of record on
April 13.



.I 11370
.C
earn
.W
CAPITAL CITIES/ABC <CCB> SETS PAYOUT.
    NEW YORK, March 18 -
    Qtrly div five cts vs five cts
    Pay April 20
    Record March 30

.I 11371
.C
earn
.W
PUBLICKER INDUSTRIES INC <PUL> 4TH QTR LOSS.
    GREENWICH, Conn., March 18 -
    Shr loss five cts vs loss 15 cts
    Net loss 619,000 vs loss 1,730,000
    Sales 3,138,000 vs 5,667,000
    Avg shrs 12.5 mln vs 11.5 mln
    Year
    Shr loss four cts vs loss 40 cts
    Net loss 343,000 vs loss 3,963,000
    Sales 13.4 mln vs 35.3 mln
    Avg shrs 12.5 mln vs 10.3 mln


.I 11372
.C
earn
.W
******FEDERAL EXPRESS CORP 3RD QTR OPER SHR 69 CTS VS 83 CTS.
Blah blah blah.

.I 11373
.C
earn
.W
BELL ATLANTIC CORP <BEL> INCREASES PAYOUT.
    PHILADELPHIA, March 18 -
    Qtrly div 96 cts vs 90 cts
    Pay May One, 1987
    Record March 31, 1987


.I 11374
.C
earn
.W
RHODES <RHDS> SEES SHARPLY LOWER 4TH QTR NET.
    ATLANTA, March 18 - Rhodes Inc said it now estimates fourth
quarter, ended February 28, earnings were eight cts a share,
down from the 25 cts earned in the final quarter of fiscal
1986.
    The company said the major causes for the reduction were an
unfavorable LIFO adjustment and softer than projected sales in
the quarter, due primarily to unfavorable weather.
    Despite the 4th qtr results, Rhodes said, "net income for
the year just ended should come close to the record level of
the previous year" -- 1.61 dlrs dlrs a share.


.I 11376
.C
acq
.W
GENCORP <GY> GROUP HOLDS 9.8 PCT STAKE.
    NEW YORK, March 18 - (General Partners), a Texas general
partnership equally owned by affiliates of Wagner and Brown and
AFG Industries Inc <AFG>, said it currently holds 2,180,608
common shares, or about 9.8 pct, of Gencorp Inc's <GY>
outstanding common stock.
    General Partners said it began a 100 dlrs a share cash
tender offer for all of Gencorp, an Akron, Ohio-based concern,
that is worth nearly 2.3 billion dlrs.
    Gencorp, which has interests in tire- and plastic-making,
aerospace and broadcasting, has about 22.3 mln shares
outstanding.
    The General Partners offer is subject to receipt of
financing, a majority of Gencorp shares and other conditions.
    In a letter to Gencorp chairman and chief executive A.
William Reynolds describing the offer, General Partners said it
was willing to negotiate terms of the offer and was prepared to
meet as soon as possible.
    In a statement, General Partners said it has contributed
250 mln dlrs in equity financing and also has commitments for 
a one billion dlr credit line from Wells Fargo and Co <WFC> and
a 1.25 billion loan from Shearson Lehman Brothers Holdings Inc,
a unit of American Express Co <AXP>.
    A Gencorp spokesman said the company's management was
meeting but that its board was not scheduled to meet today. He
said he was not sure the company had formally received notice
of the offer but was aware of it through press accounts.
    He declined to say what Gencorp's next move might be or
whether it would issue a statement later today.
    In the letter, General Partners said it plans to maintain
Gencorp's corporate headquarters in Akron, and retain the
company's plastics and industrial products businesses and its
tires and related products segment.
    The letter did not mention Gencorp's RKO General
broadcasting subsidiary, which has been involved in disputes
over license renewals at several of its television stations.
Gencorp has agreed to sell two of its independent stations, WOR
in the New York area and KHJ in Los Angeles.
    General Partners officials were not immediately available.
    Gencorp shares were delayed at the opening on the New York
Stock Exchange because of an imbalance of orders, and the NYSE
said the shares were indicated to open at 103 to 115. The
shares closed up two yesterday at 90-1/2, a new 52-week high.
    The financing for the offer includes the 250 mln dlrs in
equity from General Partners, the 1.25 billion dlr loan from
Shearson Lehman Brothers, a senior subordinated bridge loan for
which a binding agreement can be delivered within 24 hours
after a request from the partnership, and the one billion dlr
credit line from Wells Fargo.
    Wells Fargo has agreed to lend up to 250 mln dlrs of the
line itself and form a syndicate of banks to provide the rest,
the partnership said.
    Shearson Lehman Brothers Inc will act as dealer manager in
the tender offer, it said.
    In the letter, the partnership said it was confident it
could obtain the financing and close the transaction promptly.
    Last fall AFG and privately held Wagner and Brown offered
to acquired (Lear Siegler Inc) for about 1.44 billion dlrs but
withdrew the offer when higher bids emerged. Lear Siegler
eventually went private for about 1.66 billion dlrs.


.I 11377
.C
bop;trade;
.W
THAI TRADE DEFICIT WIDENS IN FEBRUARY.
    BANGKOK, March 18 - Thailand's trade deficit widened to an
estimated 4.7 billion baht in February from 2.1 billion in
January and 2.8 billion a year ago, the Bank of Thailand said.
    Exports fell to around 18.9 billion baht from 20.4 billion
in January compared with 17.4 billion a year ago, the bank
said.
    Imports rose to 23.6 billion baht from 22.5 billion in
January. They were 20.2 billion in February 1986.
    The bank said the trade deficit for the two months widened
to an estimated 6.8 billion baht from 5.2 billion a year ago.
    February's current account showed a 1.2 billion baht
deficit compared with 1.7 billion in January and 263 mln a year
ago.
    The current account for the two months posted an estimated
500 mln baht surplus, down from 1.2 billion a year ago.
    A surplus in the country's balance of payments narrowed to
3.2 billion baht in February from 4.6 billion the previous
month but was higher than 1.5 billion a year ago.
    The bank said the balance of payments surplus for the first
two months of 1987 widened to 7.8 billion baht from 4.6 billion
from the same period in 1986, while the net capital inflow rose
to five billion baht from 3.1 billion.


.I 11378
.C
earn
.W
A AND P <GAP> SETS HIGHER CAPITAL SPENDING.
    MONTVALE, N.J., March 18 - The Great Atlantic and Pacific
Tea Co said its three-year 345 mln dlr capital program will be
be substantially increased to accommodate growth and expansion
plans for Waldbaum Inc and Shopwell Inc over the next two
years.
    A and P said the acquisition of Shopwell in August 1986 and
Waldbaum in December "helped us achieve better than expected
results in the fourth quarter" ended February 28. Its net
income from continuing operations jumped 52.6 pct to 20.7 mln
dlrs, or 55 cts a share, in the latest quarter as sales
increased 48.3 pct to 1.58 billion dlrs.
    A and P gave no details on the expanded capital program,
but it did say it completed the first year of the program
during 1986.
    A and P is 52.4 pct owned by <Tengelmann
Warenhandelsgesellschaft> of West Germany.


.I 11379
.C
earn
.W
FEDERAL EXPRESS CORP <FDX> 3RD QTR FEB 28 NET.
    MEMPHIS, Tenn., March 18 -
    Oper shr 69 cts vs 83 cts
    Oper net 35.9 mln vs 42.4 mln
    Revs 798.9 mln vs 659.2 mln
    Avg shrs 52.0 mln vs 50.9 mln
    Nine mths
    Oper shr 2.38 dlrs vs 2.75 dlrs
    Oper net 123.3 mln vs 135.6 mln
    Revs 2.31 billion vs 1.86 billion
    Avg shrs 51.8 mln vs 49.3 mln
    NOTE: Net excludes losses from discontinued operations of
nil vs 16.1 mln dlrs in quarter and 227.5 mln dlrs vs 42.7 mln
dlrs in nine mths.
    Quarter net includes gains from sale of aircraft of two mln
dlrs vs 6,200,000 dlrs.


.I 11384
.C
earn
.W
MORGAN GRENFELL SAYS 1986 PROFITS HIT BY GUINNESS.
    LONDON, March 18 - <Morgan Grenfell Group Plc> said its
1986 pre-tax profits were lower than forecast because of
depreciation in the value of its Guinness Plc <GUIN.L> shares
and because of securities trading losses in the U.S.
    Morgan chairman Lord Catto said the losses on the group's
seven mln Guinness shares in addition to a 3.5 mln dlr loss on
its risk arbitrage operation in New York depressed profits some
eight mln stg to 82.2 mln.
    He also told a news conference Morgan had received informal
approaches about a takeover of the group but was not
interested. No formal offers had been made, but Catto would not
elaborate.
    Morgan Grenfell acted as merchant banker to Guinness during
the brewing company's successful bid for Distillers Co Plc
<DIST.L> in the first half of last year.
    The U.K. Government launched an investigation into the
affairs of Guinness last December. Public concern has focused
on the way Guinness may have breached U.K. Company law and the
Takeover Code by prompting others to support its share price
during the bid.
    Morgan chief executive Christopher Reeves, head of
corporate finance Graham Walsh and senior corporate finance
director Roger Seelig all resigned in January over the Guinness
affair.
    Another senior Morgan Grenfell executive, Geoffrey Collier,
resigned late last year on allegations of trading on insider
information. He currently faces criminal charges.
    Lord Catto said the second half of 1986 had been "one of the
most traumatic in our history," but that clients and staff had
been supportive.
    "I certainly look on the future in a positive way. We have
the worst behind us and have swept nothing under the carpet."
    Profits for the year, up 19.4 pct from 1985 pre-tax profits
of 68.8 mln stg, were mainly due to a high contribution from
corporate finance activities and progress in asset management.
    Finance Director David Ewart told the news conference the
performance of the group so far in 1987 was "within reasonable
touch of the budget."
    Lord Catto also said the group was actively seeking a new
chief executive to replace Sir Peter Carey, who is acting as
interim director after Reeves' resignation, and hopes to have a
new chief executive within a few months.
    He also said Reeves and Walsh had been paid a total of
562,000 stg in compensation following their resignations, but
declined to say how much each man got. Negotiations were going
on to determine an amount of compensation for Seelig, he said.
    Morgan Grenfell shares stood at a late 366p, 9p down on
yesterday's 375p.
 REUTER...

.I 11386
.C
earn
.W
UNITED ASSET MANAGEMENT CORP <UAM> UPS PAYOUT.
    PROVIDENCE, March 18 -
    Qtly div four cts vs three cts prior
    Pay April 15
    Record March 31


.I 11387
.C
earn
.W
KINDER-CARE INC <KNDR> FIRST QTR NET.
    MONTGOMERY, Ala., March 18 - Qtr ends dec 31
    Shr one cent vs 15 cts
    Net 466,000 vs 6,866,000
    Revs 123.1 mln vs 93.5 mln
    NOTE: the company changed its fiscal year end from Aug 31
to Dec 31. qtr prior ended Jan 17, 1986 and included two more
weeks than current qtr.
    current qtr includes loss 899,000 for accounting change.


.I 11388
.C
earn
.W
ULTRASYSTEMS INC <ULS> 4TH QTR JAN 31 NET.
    NEW YORK, March 18 -
    Shr 26 cts vs 18 ctsd
    Net 2,102,000 vs 1,415,000
    Revs 44.1 mln vs 42.2 mln
    Year
    Shr 21 cts vs 91 cts
    Net 1,678,000 vs 7,105,000
    Revs 155.1 mln vs 149.2 mln
    Avg shrs 7,960,000 vs 7,808,000
    NOTE: Latest year net includes writeoff of investment in
Dawn Enterprises ethanol refinery of 79 cts shr.


.I 11389
.C
acq
.W
CANAMAX TO ACQUIRE KREZMAR GOLD PROPERTY STAKE.
    TORONTO, March 18 - <Canamax Resources Inc> said it agreed
to acquire the 50 pct interest it does not already own in the
Krezmar gold property, near Wawa, Ontario, by paying nine mln
dlrs to <Algoma Steel Corp Ltd> and granting Algoma a four pct
net smelter return royalty, which is payable after payback.
    The property's drill indicated reserves to a depth of 1,200
feet are estimated at over one mln tons averaging 0.25 ounces
of gold a ton, Canamax said.


.I 11390
.C
earn
.W
NFS FINANCIAL <NFSF> SETS INITIAL DIVIDEND.
    NASHUA, N.H., March 18 - NFS Financial Corp said its board
declared an initial dividend of five cts per share, payable
April 21 to holders of record March 31.


.I 11394
.C
interest
.W
BANK OF ENGLAND LENDS ONE BILLION STG AT 10 PCT.
    LONDON, March 18 - The Bank of England said it had lent one
billion stg to the discount market for fourteen days at 10 pct.
    This brings the Banks total help today to some 1.34 billion
stg and satisfies the estimated shortage in the system today
which it had earlier estimated at 1.3 billion stg.
    The Bank's announcement this morning that it was willing to
lend two-week money at 10 pct was interpreted by the market as
a sanction for lower U.K. Base lending rates.
    The U.K. Clearing banks swiftly took this up, cutting their
base rates by a half-point to 10 pct. At midday, the central
bank lowered its money market dealing rates by the same amount.


.I 11395
.C
sugar
.W
****** UK INTERVENTION BD SAYS EC SOLD 60,500 TONNES WHITE SUGAR AT REBATE 44.819 ECUS.       .
Blah blah blah.

.I 11396
.C
earn
.W
SENSORMATIC ELECTRONICS CORP <SNSR> 3RD QTR NET.
    DEERFIELD BEACH, Fla., March 18 - Feb 28 end
    Shr profit 11 cts vs loss 37 cts
    Net profit 3,027,000 vs loss 10.4 mln
    Revs 22.3 mln vs 19.9 mln
    Avg shrs 28.6 mln vs 29.0 mln
    Nine mths
    Shr profit 34 cts vs loss 22 cts
    Net profit 9,560,000 vs loss 6,072,000
    Revs 71.9 mln vs 64.7 mln
    Avg shrs 28.5 mln vs 27.9 mln
    NOTE: Prior year net both periods after 15.2 mln dlr
writeoff.


.I 11397
.C
sugar
.W
U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES.
    LONDON, March 18 - A total 60,500 tonnes of current series
white sugar received export rebates of a maximum 44.819
European Currency Units (Ecus) per 100 kilos at today's
European Community (EC) tender, the U.K. Intervention Board
said.
    Out of this, traders in France received 18,000 tonnes, in
Denmark 15,000, in West Germany 12,250, in the Netherlands
12,000 and in Belgium 3,250 tonnes, it added.
    Earlier today, London traders had expected the subsidy for
the current season whites campaign for licences to end-Aug to
be between 44.10 and 44.50 Ecus per 100 kilos.
    Traders had also forecast today's total authorised sugar
tonnage export awards to be between 60,000 and 70,000 tonnes
versus 71,000 last week when the restitution was 43.248 Ecus.
    Cumulative export authorisations for the current 1986/87
season now stand at 1,915,270 tonnes (40 weeks).


.I 11399
.C
acq
.W
ANACOMP <AAC> ACQUIRES DATAGRAPHIX.
    INDIANAPOLIS, IND., March 18 - Anacomp Inc said it acquired
the common stock of DatagraphiX Inc from General Dynamics Corp
<GD> for about 128 mln dlrs.
    It said the purchase will be financed with a combination of
a new bank credit agreement and through private placement of
senior subordinated notes and convertible preferred stock.
    DatagraphiX, which had 1986 sales of 240.7 mln dlrs,
manufactures a line of computer output to microfilm hardware
and supplie.
    Anacomp's sales for the year ended Sept 30, 1986 were 108.8
mln dlrs.


.I 11402
.C
earn
.W
WINNEBAGO INDUSTRIES INC <WGO> 2ND QTR NET.
    FOREST CITY, IOWA, March 18 -
    Period ended February 28
    Shr 25 cts vs 25 cts
    Net 6,292,000 vs 6,340,000
    Sales 97.0 mln vs 87.0 mln
    Six mths
    Shr 36 cts vs 28 cts
    Net 9,122,000 vs 7,053,000
    Sales 193.2 mln vs 168.6 mln
    NOTE: 1986 period ended March One


.I 11403
.C
l-cattle
.W
CATTLE BEING PLACED ON FEED LIGHTER THAN NORMAL.
    By Jerry Bieszk,
    CHICAGO, March 18 - Most of the cattle now being placed on
U.S. feedlots weigh less than normal and likely will remain on
feed longer, spreading out marketings and supporting cattle
prices through the summer because of reduced beef supply.
    The prospect of so many cattle remaining on feed for a
longer time blunted the market impact of the high placements
reported in the USDA's latest cattle on feed report, livestock
analysts said.
    After the USDA released its report of cattle on feed in
seven states as of March 1, cattle futures on the Chicago
Mercantile Exchange yesterday rose sharply. The trade had
expected deferred contracts to decline on the USDA report of a
15 pct rise in cattle placements in February from a year ago.
    Although the heavy placements were expected, analysts noted
reports that many cattle put on feed were relatively
lightweight and said feedlot operators would feed the lighter
cattle into the autumn, rather than market them during the
summer as would be the case with the heavier cattle normally
placed on feed.
    Although reports of actual cattle weights are difficult to
obtain, industry sources in the West and Southwest acknowledge
that lighter cattle are being put on feedlots in their areas.
    The increase in lighter-weight cattle entering feedlots,
helps explain the jump in feedlot placements last month from
February, 1986.
    University of Missouri Agricultural Economist Glenn Grimes
said, "The probabilities are high that in order to place that
many cattle on feed they (feedlot operators) had to go to
lighter-weight cattle.
    The only statistics available are from some terminal
markets which represent only a small percentage of the total
cattle marketed. But at those markets, steers averaged 708 lbs
in February compared with 718 lbs last year, Grimes said.
    Even if marketing of the lighter cattle is not delayed,
Grimes said, beef supply likely will be reduced.
    If the average weight is down, and there is no price
weakness to delay marketings, the cattle would be marketed at
lighter weights, which could reduce the beef supply as much as
three pct.
    Bruce Ginn, cattle analyst for The Helming Group (formerly
LBAS), said the lighter cattle are being placed on feed mainly
because of two factors: low grain prices and higher live cattle
prices.
    Many farmers like to feed lighter weight cattle and grain
supplies are large, he noted. Also, the higher live cattle
prices have been encouraging early movement of cattle from
wheat pasture onto feedlots, Ginn said.
    Other analysts also noted that cattle are coming off wheat
pasture sooner than normal because of poor pasture conditions.
    Gary Chapmann, a cash livestock trader for Chapmann and
Graham in Sioux City, Iowa said he believed the general trend
is to lighter weight placements but pasture conditions in his
area benefited from a dry, mild winter.
    To the south, however, he said the weather was wetter and
some cattle are coming off pasture weighing 75 to 100 lbs less
than normal after having gained only 75 lbs all winter.


.I 11404
.C
cocoa
.W
N.Y. COCOA TRADERS STILL CAUTIOUS ON ICCO.
    New York, March 18 - New York cocoa traders reacted with
caution to today's developments at the International Cocoa
Organization talks in London, saying there is still time for
negotiations to break down.
    "I would be extremely cautious to go either long or short
at this point," said Jack Ward, president of the cocoa trading
firm Barretto Peat. "If and when a final position comes out (of
the ICCO talks) one will still have time to put on positions.
The risk at the moment is not commensurate with the possible
gain."
    ICCO producer and consumer delegates this morning accepted
the outlines of a compromise proposal on buffer stock rules as
a basis for further negotiation. A smaller group of
representatives is now charged with fleshing out the details.
    "Market sentiment has reflected optimism, I would't put it
any stronger than that," Ward said.
    "It seems to put them slightly closer to an agreement...
but one shouldn't forget how much they have to negotiate," said
another trader of today's developments.
    Many dealers were sidelined coming into the negotiations
and have remained so, traders said.
    "The dealers have got historically small positions in
outright terms," one trader said.
    Speculators have gone net long "but only slightly so," he
added.
    The recent price strength -- gains of about 52 dlrs the
last two days -- has been due in large part to sterling's rally
against the dollar and in the process has attracted a measure
of origin selling, traders said.


.I 11405
.C
gnp
.W
REAGAN UPBEAT ABOUT LATEST GNP FIGURES.
    WASHINGTON, March 18 - President Reagan said the 1.1 pct
U.S. economic growth rate during the final quarter of 1986
"wasn't all that bad."
    The Commerce Department said the rate of growth of the
Gross National Product in the October-December period was only
slightly less than a preliminary estimate of 1.3 pct made
earlier.
    At the same time, it said inflation, as measured by the GNP
price deflator, rose by 0.7 pct during the period.
    Asked his reaction to the GNP report during a White House
photo session, Reagan replied, "It wasn't all that bad."


.I 11406
.C
earn
.W
PENWEST LTD <PENW> 2ND QTR ENDS FEB 28 NET.
    BELLEVUE, Wash., March 18 -
    Shr 85 cts vs 24 cts
    Net 2,381,000 vs 754,000
    Revs 35.3 mln vs 32.6 mln
    Avg shrs 2,777,620 vs 3,161,603
    Six mths
    Shr 1.35 dlrs vs 44 cts
    Net 3,756,000 vs 1,388,000
    Revs 65.8 mln vs 64.3 mln
    Avg shrs 2,777,620 vs 3,161,603



.I 11407
.C
earn
.W
SIERRA SPRING WATER CO <WTR> 4TH QTR LOSS.
    SACRAMENTO, Calif., March 18 -
    Shr loss 10 cts vs profit six cts
    Net loss 986,000 vs profit 576,000
    Rev 9.6 mln vs 9.1 mln
    Year
    Shr loss seven cts vs profit 27 cts
    Net loss 714,000 vs profit 2,299,000
    Rev 42.8 mln vs 34.6 mln


.I 11408
.C
acq
.W
GELCO <GEL> TO SELL CANADIAN COURIER UNIT.
    MINNEAPOLIS, March 18 - Gelco Corp said it signed a letter
of intent to sell its Canadian courier unit, Gelco Express Ltd,
to Air Canada for about 54 mln dlrs (U.S.).
    It said consummation of the transaction depends on
execution of a definitive agreement, which is expected in May.
    As part of its restructuring plan, Gelco had announced that
it would sell four business units. Gelco Express Ltd was one of
the companies scheduled for divestiture.


.I 11409
.C
acq
.W
SYNTHETECH <NZYM> ENDS SOUTHWEST PHOTO TALKS.
    BOULDER, COLO., March 18 - Synthetech Inc said it
discontinued negotiations on acquiring Southwest Photo chem Inc
of Pomona, Calif.
    The company cited "irreconcilable differences" in the
financial structure of the deal.
    It said Southwest Photo proposed a significant change in
terms outlined in the letter of intent signed last month.


.I 11410
.C
acq
.W
RANCO <RNI> HOLDERS APPROVE MERGER.
    DUBLIN, Ohio, March 18 - Ranco Inc said shareholders at a
special meeting approved a merger into <Siebe PLC> for 40 dlrs
per share.


.I 11411
.C
earn
.W
AMERICAN PHYSICIANS SERVICE <AMPH> 4TH NET.
    AUSTIN, Texas, March 18 -
    Shr profit five cts vs profit two cts
    Net profit 268,000 vs profit 134,000
    Revs 6,951,000 vs 5,938,000
    12 mths
    Shr profit 14 cts vs loss 11 cts
    Net profit 801,000 vs loss 623,000
    Revs 24.6 mln vs 24.3 mln
    NOTE: full name of company is american physicians service
group inc.


.I 11413
.C
acq
.W
AIR CANADA TO COMMENT ON GELCO<GEC> UNIT REPORT.
    TORONTO, March 18 - State-owned Air Canada said it will
make a statement at 1100 EST concerning a published report that
the airline has agreed to acquire Gelco Corp's Canadian unit,
Gelco Express Ltd, an Air Canada spokesman said.
    The spokesman declined to comment on the Toronto Globe and
Mail report when queried.
    The sale of Gelco Express, Canada's second largest courier
service, is part of the parent company's strategy to repay 350
mln U.S. dlrs of debt by the end of 1987, the report said,
quoting a Gelco spokesman. The report did not disclose a price
for the sale of Gelco's Canadian unit.


.I 11414
.C
earn
.W
PHILIP CROSBY <PCRO> SEES LOWER 4TH QTR RESULTS.
    WINTER PARK, Fla., March 18 - Philip Crosby Associates Inc
said it expects its audited results for 1986's fourth quarter
to be lower than its previously estimated 10 to 15 cts per
share.
    Philip Crosby Jr, executive vice president, said normal
accounting adjustments, as well as a review of the company's
international operations due to a previously reported alleged
embezzlement, resulted in the lower results.
    Philip Crosby reported fourth quarter 1985 results of 1.3
mln dlrs, or 37 cts a share prior to an August 15 two-for-one
stock split.
    Crosby said, however, he expects the company to report
higher first quarter 1987 revenues than the 1986 first quarter
revenues of 11.8 mln dlrs.
    Crosby said that tuition levels from the management
consulting service company's courses this month are at the
highest level in the company's history.


.I 11415
.C
earn
.W
GENZYME CORP <GENZ> 4TH QTR NET.
    BOSTON, March 18 -
    Shr profit three cts vs loss 44 cts
    Net profit 247,000 vs loss 2,410,000
    Revs 3,845,000 vs 3,264,000
    Avg shrs 8,743,000 vs 5,507,000
    Year
    Shr profit one ct vs loss 53 cts
    Net profit 41,300 vs loss 2,840,000
    Revs 13.0 vs 9,767,000
    Avg shrs 7,497,000 vs 5,384,000
    NOTE: 1985 4th qtr and year net includes two mln dlr loss
for litigation settlement and 589,000 dlrs for write-off of
goodwill.


.I 11416
.C
earn
.W
INFORMATION SOLUTIONS INC <ISOL> 1ST QTR JAN 31.
    DENVER, March 18 -
    Shr two cts vs six cts
    Net 43,295 vs 147,724
    Revs 3,787,507 vs 4,000,019


.I 11417
.C
earn
.W
FAIRCHILD INDUSTRIES <FEN> SETS REGULAR PAYOUT.
    CHANTILLY, Va., March 18 -
    Qtrly div five cts vs five cts
    Pay Apirl 10
    Record March 30
    


.I 11418
.C
earn
.W
ALFA LAVAL AB <ALFS.ST> 1986 YEAR.
    STOCKHOLM, March 18 -
    Group profit after financial income and expenses 731 mln
    Crowns vs 651 mln
    Sales 10.15 billion crowns vs 10.05 billion
    Profit per share after full taxes - 31.80 crowns vs 30
    Crowns
    Proposed dividend - 11 crowns vs 10 crowns.


.I 11420
.C
earn
.W
SPECTRUM CONTROL INC <SPEC> SETS QUARTERLY.
    ERIE, Pa., March 18 -
    Qtly div 1-3/4 cts vs 1-3/4 cts prior
    Pay April 15
    Record April One


.I 11422
.C
acq
.W
SEC MOVES TO DISCIPLINE ALLEGHENY INT'L <AG>.
    WASHINGTON, March 18 - The Securities and Exchange
Commission (SEC) staff is seeking authority to take enforcement
action against Allegheny International Inc, the
Pittsburgh-based industrial and consumer products firm said.
    Allegheny made the disclosure in documents filed with the
SEC in connection with its recent agreement to be taken private
through a leveraged buyout led by First Boston Inc.
    "Following announcement of the merger agreement, the company
was informed by the Enforcement Division of the (SEC) that it
intends to seek authority from the commission to institute a
proceeding against the company," Allegheny said.
    "The company is cooperating in the commission's
investigation which is continuing and now includes the taking
of testimony of employes and others," Allegheny said.
    In the ongoing probe, Allegheny said, the staff has asked
for information about company executive compensation and
benefit plans, certain company-owned real estate, travel and
entertainment spending and the use of corporate aircraft.
    It also has asked for information on acquisitions and
divestitures, the company's accounting system "and other
internal controls," Allegheny said.
   The probe began in February 1986, Allegheny said.
    The SEC, as a matter of policy, routinely declines comment
on its enforcement actions.
    The SEC investigation began just months before Allegheny
became the target of a series of shareholder lawsuits claiming
that the company had violated the federal securities laws by
failing to disclose material matters in recent annual proxy
statements.
    The suits, later consolidated into a single class-action
complaint before a Pennsylvania federal court, allege
securities law violations involving numerous current and former
Allegheny officers and directors.
    Earlier this month, lawyers for the shareholders asked the
court to expand the charges to include an allegation that, in
the buyout, Allegheny had attempted to illegally freeze out its
public shareholders at an unfair price.
    Allegheny said it intends to vigorously defend itself
against all charges.
    The charges made in the shareholder suits are widely
believed to have led to last summer's resignation of Chairman
and Chief Executive Officer Robert Buckley.
    In the buyout, a group led by First Boston tendered March
13 for all outstanding Allegheny shares at 24.60 dlrs a share.


.I 11423
.C
acq
.W
ICELAND TO PRIVATISE STATE BANK UTVEGSBANKI.
    REYKJAVIK, March 18 - The Icelandic government said it will
privatise the state-owned bank Utvegsbanki, the country's
second largest. Parliament also granted an 800 mln crown cash
infusion to ease cash flow problems that arose when the bank
lost 600 mln crowns in a shipping firm bankruptcy two years
ago.
    Utvegsbanki director Halldor Gudbjarnarson told Reuters the
decision to privatise the bank was a relief and that foreign
banks had already expressed interest in taking a share.
    A quarter of the one billion crown total share capital will
be available to foreign investors, government officials said.


.I 11426
.C
earn
.W
GENOVESE DRUG STORES INC <SPEC> SETS QUARTERLY.
    MELVILLE, N.Y., March 18 -
    Qtly div five cts vs five cts prior
    Pay April 20
    Record April 13 


.I 11427
.C
earn
.W
VW'S AUDI SAYS PROFIT FELL AROUND 50 PCT IN 1986.
    MUNICH, March 18 - Audi AG <NSUG.F>, the 99 pct owned
subsidiary of Volkswagen AG <VOWG.F>, said profit in 1986 fell
by around half compared with 1985, when it achieved a record
221 mln marks net profit, a rise of 19.5 pct on the previous
year.
    Managing board chairman Wolfgang Habbel told a news
conference he expected both profit and turnover to rise this
year compared with 1986, but he said it was questionable
whether 1987 profit would return to 1985 levels.
    He gave no figure for 1986 profit. Audi had predicted last
year that 1986 profit would likely fall by an unspecified
amount from 1985's record levels.
    Habbel said turnover in 1986 rose to 9.9 billion marks from
9.6 billion in 1985 and looked certain to rise to over 10
billion this year.
    Asked whether Audi would pay a dividend to VW to help the
parent company overcome its currency losses, Habbel said Audi
would ensure VW got a share of profits.
    Audi's entire 1985 net profit was paid into its own free
reserves to help finance investment. In the previous 10 years
VW had received 80 pct of Audi's earnings as a dividend.
    Habbel blamed the profit decline on disruptions to output
caused by the introduction of the new Audi 80 model, on
currency factors and on negative publicity in the U.S. About
alleged "sudden acceleration" of some of its Audi 5000 models.
    As reported, Audi's sales in the U.S. Dropped nearly 20 pct
to 59,800 last year.
    Habbel said the U.S. Sales decline would probably bottom
out in 1987.
    Audi's worldwide car deliveries fell two pct to 363,000.
    Of the total, exports fell 10.5 pct to a rounded 210,000,
but domestic sales increased to a rounded 154,000 from 137,180
in 1985.
    Habbel said the new Audi 80 had sold extremely well in the
first two months of 1987, helping Audi to increase its overall
market share in West Germany to 8.4 pct from 5.2 pct in the
same months of 1986. Sales in Europe also rose but U.S. Sales
fell further, he said without giving details. Worldwide
deliveries in the first two months increased eight pct to
57,000.
    Audi said in January that 1987 car production would rise to
over 400,000 from 384,000 in 1986, when output had fallen
compared with 1985's 392,000.
    Habbel said Audi expected the rise in output to lead to
further new hiring of employees.
    At the end of 1986 Audi's workforce stood at a record
39,800, a rise of 3,400 over 1985.


.I 11428
.C
silver
.W
STUDY SHOWS ONLY LIMITED OPTIMISM FOR SILVER.
    ZURICH, March 18 - Silver looks "unlikely to break out of
gold and platinum's shadow" in the near future, although this
year is likely to see demand increasing at a faster rate than
supply, a study by Credit Suisse said.
    The study predicted demand rising by 300 tonnes to 13,200
tonnes this year, against a 50 tonne increase in supply to
14,050 tonnes. This should cut the global oversupply to 850
tonnes from last year's provisional 1,100 tonnes.
    The study noted that the effects of last year's lower
prices were having a dampening effect on total supply, which
was now back down to around levels of a decade ago.
    However, the study said that primary production, likely to
reach 10,000 tonnes this year against a provisional 9,950 in
1986, is relatively insensitive to price falls.
    Around a third of silver production comes from heavily
indebted Mexico and Peru.
    Price-sensitivity is also reduced by the fact that the
majority of silver is a by-product of other mining activity.


.I 11433
.C
earn
.W
ANIMED INC <VETS> 1ST QTR JAN 31 LOSS.
    ROSLYN, N.Y., March 18 -
    Shr loss six cts vs profit three cts
    Net loss 368,188 vs profit 149,334
    Revs 3,9i3,523 vs 4,129,240


.I 11434
.C
earn
.W
ANIMED <VETS> EXPECTS TO TURN PROFITABLE.
    ROSLYN, N.Y., March 18 - ANIMED Inc said it expects to
return to profitability during the current year.
    Today it reported a loss for the first quarter ended in
January of 368,188 dlrs compared with a 149,334 dlr profit a
year before.


.I 11435
.C
earn
.W
CROWN AUTO INC <CRNI> 4TH QTR DEC 27 LOSS.
    MINNEAPOLIS, March 18 -
    Shr loss 14 cts vs loss 31 cts
    Net loss 144,522 vs loss 334,890
    Revs 10,019,828 vs 9,021,835
    Year
    Shr loss 16 cts vs profit 10 cts
    Net loss 170,177 vs profit 105,090
    Revs 36.8 mln vs 36.1 mln
    Avg shrs 1,068,850 vs 1,074,624
    NOTE: 1985 period ended December 28
    1985 earnings include loss in each period from discontinued
operations of 184,777 dlrs


.I 11436
.C
earn
.W
UNION VALLEY CORP <UVC> 4TH QTR NET.
    WHITING, N.J., March 18 -
    Shr 20 cts vs 34 cts
    Net 797,000 vs 1,137,000
    Rev 22.2 mln vs 18.2 mln
    Avg shares 3,966,667 vs 3,366,667
    Year
    Shr 73 cts vs one dlr
    Net 2,625,000 vs 3,371,000
    Rev 69.6 mln vs 62.9 mln
    Avg shares 3,583,653 vs 3,366,667
    NOTE: 1986 includes extraordinary gain of 281,000 dlrs, or
eight cts a share.


.I 11437
.C
earn
.W
GENERAL DEVICES INC <GDIC> YEAR NET.
    NORRISTOWN, Pa., March 18 -
    Shr profit 48 cts vs loss 21 cts
    Net profit 1,308,503 vs loss 561,384
    Revs 56.0 mln vs 66.1 mln
    NOTE: 1986 net includes pretax gain 2,429,563 dlrs from
sale of Worldwide Computer Services Inc subsidiary and 352,000
dlr tax credit.


.I 11438
.C
earn
.W
DEUTSCHE BABCOCK TO INCREASE DIVIDEND IN 1986/87.
    OBERHAUSEN, West Germany, March 18 - Deutsche Babcock AG
<DBCG.F> will increase its dividend on results in the year
ending September 30, 1987, chief executive Helmut Wiehn said.
    Wiehn told a news conference Deutsche Babcock would double
the absolute amount it distributes to shareholders. This
overall increase would also be due partly to an increase of
nominal share capital by 100 mln marks to 350 mln marks.
    A higher dividend had been anticipated because Deutsche
Babcock has said in the past that it will only raise capital
when it can make a lasting improvement in the dividend.


.I 11440
.C
acq
.W
EXOVIR <XOVR> SELLS STOCK FOR 2.8 MLN DLRS.
    GREAT NECK, N.Y., March 18 - Exovir Inc said it sold to an
investor group led by Mark Hammer 200,000 shares of company
common stock and warrants to purchase an additional 200,000
shares.
    Exovir said the transaction increases the group's stake
from 12.9 pct to 18.5 pct.
    The net proceeds to the company total 2.8 mln dlrs, the
company said. The warrants are exerciseable over the next three
years at 19.50 dlrs per share of common stock, according to
Exovir.


.I 11441
.C
earn
.W
BRAD RAGAN INC <BRD> SETS QUARTERLY.
    CHARLOTTE, N.C., MArch 18 -
    Qtly div three cts vs three cts prior
    Pay May 4
    Record April 3


.I 11442
.C
earn
.W
<BASTIAN INDUSTRIES INC> 2ND QTR JAN 31 LOSS.
    NEW YORK, March 18 -
    Net loss 1,321,000 vs loss 1,397,000
    Sales 31.1 mln vs 29.2 mln
    1st half
    Net loss 94,000 vs loss 1,745,000
    Sales 63.0 mln vs 61.9 mln
    NOTE: Company recently went private.
    Latest quarter net includes 24,000 dlr tax credit.
    Current half net includes gain 2,041,000 dlrs pretax from
termination of pension plan.


.I 11444
.C
money-fx;interest;
.W
U.K. BASE RATES WILL FALL AGAIN SOON, SAY ANALYSTS.
    By Geert Linnebank, Reuters
    LONDON, March 18 - Today's modest half-point cut in U.K.
Bank base lending rates to 10 pct signals the Bank of England's
determination to maintain a cautious monetary stance, but
financial markets appear set to force its hand, analysts said.
    They said a further half-point cut in base rates to 9-1/2
pct was bound to occur within the next week and rates may shed
a further half point soon if markets remain buoyant.
    Earlier, markets were bracing for a one-point cut in rates
after yesterday's budget set a sharp three billion stg
reduction in 1987 government borrowing targets to four billion
stg.
    Sterling money market rates moved lower again, with the key
three-month interbank rate down to 9-5/8 1/2 pct at the start
of business from 9-11/16 9/16 yesterday, and sterling rallied
to four-year highs against the dollar in very active trading.
    Government bond prices also surged on the budget, with
gains in excess of one point pushing yields on long-term paper
below nine pct for the first time in nearly a year.
    But today's smaller than expected rate cut appeared to have
placated markets for now, analysts said. Money market rates
recovered up to 1/4 point from earlier lows while both sterling
and gilts came off highs as trading ground to a near halt.
    Analysts said the slowdown was likely to be temporary, and
the reappraisal of sterling assets by international investors
was set to resume as early as tomorrow, leading to higher gilt
prices, exchange rate advances and lower money market rates.
    "Today's cut was slightly disappointing," said Bill Martin,
chief U.K. Economist at stockbrokers Phillips and Drew. "The
Bank of England is taking a very cautious line ... To temper
the markets' first rush of blood to the head after the budget."
    Analysts said the bank's move today to lend two-week cash
to U.K. Discount houses at a lower 10 pct suggested it hoped to
maintain the new rates for about that period of time.
    The analysts agreed success would depend largely on how
sterling performs in the near term.
    Sharp rises in the pound's value could be checked initially
through Bank of England intervention but eventually the gains
would force the bank to cut interest rates rates again.
    "The market seems to have accepted the modest cut for the
time being," said Midland Bank treasury economist David
Simmonds. "But I am sceptical that the bank will be able to hold
up rates for long."
    Simmonds said he saw sterling rising another two U.S. Cents
this week from around 1.60 dlrs, forcing a rate cut by Friday.
    Robin Marshall, chief economist at Chase Manhattan
Securities, said "There is another half point to come in the
near term, this week or next week at the latest...We see a
whole point off base rates in the next two or three weeks."
    Analysts stressed that apart from prestige, Britain had
very little to gain from a sharp rise in sterling's exchange
rate.
    Martin, of Phillips and Drew, said the dampening effect of
a sterling rise on consumer price inflation would not
materialise for at least nine months while its hampering impact
on manufactured exports would show almost immediately.
    Analysts said the budget, featuring income tax cuts as well
as cautious plans for public finances, had improved the chances
of re-election for the Conservative government and probably
advanced the election date. One must be held before June, 1988.
Combined with overall good prospects for the U.K. Economy, this
was likely to fuel a foreign rush on sterling-denominated
assets, pushing the pound's value well above unofficial
targets.
    With mark-denominated investments largely out of favour
because of low yields and a dull economic outlook, Chase's
Marshall said "Sterling is simply the best game in town,
especially after the budget, and demand will remain strong."


.I 11445
.C
earn
.W
COMMERCIAL NATIONAL CORP <CNCL> CUTS QUARTERLY.
    SHREVEPORT, La., March 18 - Commercial National Corp said
it cut its quarterly dividend to 15 cts per share from 25 cts
due to current expectations for 1987 earnings.
    The company said the dividend is payable April 10 to
holders of record March 31.


.I 11446
.C
earn
.W
TIMBERLAND INDUSTRIES INC <TIMB> 4TH QTR NET.
    BELLEVUE, Wash., March 18 -
    Shr 14 cts vs 22 cts
    Net 188,000 vs 307,000
    Sales 14.6 mln vs 12.1 mln
    Year
    Shr 44 cts vs 63 cts
    Net 600,000 vs 852,000
    Sales 51.0 mln vs 45.7 mln


.I 11447
.C
earn
.W
<MUNICIPAL FINANCIAL CORP> 1ST QTR JAN 31 NET.
    BARRIE, Ontario, March 18 -
    Shr 34 cts vs 22 cts
    Net 1,280,185 vs 875,692
    Revs 19.0 mln vs 15.8 mln
    Assets 585.6 mln vs 469.1 mln


.I 11448
.C
palm-oil;veg-oil;iron-steel;cotton;trade;naphtha;
.W
PAKISTAN-SWEDISH GOODS EXCHANGE AGREED.
    ISLAMABAD, March 18 - Pakistan and Sweden have signed a
commodity exchange agreement for 88 mln dlrs each way, the
Pakistan government announced.
    Pakistan's exports under the agreement will include raw
cotton, cotton products, cotton textiles, steel products,
molasses, naphtha and fresh and dried fruits.
    Swedish exports to Pakistan will include medical and
laboratory equipment, electrical telecommunication equipment,
diesel engine spares, mining and security equipment,
road-building and construction machinery, fertilisers and palm
oil.


.I 11450
.C
acq
.W
PEAT MARWICK AND NOLAN NORTON TO MERGE.
    NEW YORK, March 18 - <Peat Marwick>, an accounting and
management consulting firm, and <Nolan, Norton and Co>, an
information and technology planning concern, said they have
merged.
    The companies said with the merger Nolan now will be known
as Nolan, Norton and Co-partners, the information technology
arm of Peat Marwick.
    Also as part of the merger, Nolan's 21 principals have
become Peat Marwick partners, the companies said.


.I 11451
.C
acq
.W
TRUS JOIST <TJCO> TO ACQUIRE CANADIAN FIRM.
    BOISE, Idaho, March 18 - Trus Joist Corp said it agreed to
purchase Dashwood Industries Ltd, a Canadian wood window and
patio door manufacturer, for an undisclosed amount of cash.
    Trus Joist said it expects to close the transaction before
June 30.


.I 11452
.C
earn
.W
KINDER-CARE <KNDR> SEES HIGHER EARNINGS IN 1987.
    MONTGOMERY, Ala., March 18 - Kinder-Care Inc projected its
1987 earnings to be 44 mln dlrs.
    Richard Grassgreen, president of the company, said earnings
per share are expected to be between 97 cts and one dlr in
comparison to 75 cts earnings per share for the fiscal year
ended August 29, 1986, and 80 cts for the trailing 12 months
ended November 1986.
    Greengrass said this represents an earnings per share
increase of approximately 25 to 30 pct.
    The company said it changed its fiscal year end from August
31 to December 31.


.I 11453
.C
earn
.W
ROBBINS AND MYERS INC <ROBN> 2ND QTR FEB 28 NET.
    DAYTON, Ohio, March 18 -
    Shr profit 11 cts vs loss 1.45 dlrs
    Net profit 267,000 vs loss 3,458,000
    Sales 23.6 mln vs 23.0 mln
    First half
    Shr loss 27 cts vs loss 1.91 dlrs
    Net loss 633,000 vs loss 4,548,000
    Sales 46.2 mln vs 49.7 mln
    Avg shrs 2,382,000 vs 2,381,000
    Backlog 26.1 mln vs 36.0 mln


.I 11454
.C
ship
.W
ECONOMIC SPOTLIGHT - JAPAN SHIPBUILDERS RECOVERY.
    By Fumiko Fujisaki, Reuters
    TOKYO, March 18 - Japan's ailing shipbuilding industry
plans to refloat itself in a few years from the twin rocks of
recession and a strong yen through capacity and workforce cuts
and greater use of computers, industry sources told Reuters.
    The salvage measures, which include a government-sponsored
rationalisation program, are aimed at clawing back some of the
market which Japan, the world leader, has lost to South Korea
through currency and labour cost disadvantages, they said.
    The sources said South Korea's yards are now some 35 pct
more competitive than Japan's due to such factors.
    The government plans to help the industry shed 20 pct of
current capacity within two years through mergers and
regrouping under legislation put before Parliament this month
and likely to be approved by May or June, the sources said.
    They said from September a semi-government body will assure
repayment of about 50 billion yen in liabilities incurred
through job losses and the sale of excess capacity, and another
30 billion for buying unneeded land and equipment.
    Last Friday, the Shipbuilders Association of Japan applied
to the Fair Trade Commission to form a cartel to slash tonnage
built to about half of total capacity for a year from April 1.
    The commission has held several hearings with the industry
and approval should be given this month, the sources said.
    A clampdown on output over one or two years combined with a
planned cost-cutting and streamlining program and state support
should help Japanese yards recover their international
competitiveness, they said.
    Under the cartel proposals, 33 yards each capable of
building ships of more than 10,000 gross tonnes would build a
maximum of three mln compensated gross registered tonnes (CGRT)
in 1987/88. This is about half of total capacity.
    This will ease the cut-throat competition which forced most
yards to sign orders below cost, the sources said.
    The industry is likely to seek to renew the cartel for
1988/89 as the Transport Ministry sees new orders falling to
3.1 mln CGRT in 1988/89 from 3.3 mln in 1987/88, they said.
    The rationalisation program includes a cut of 20,000 to
30,000 of the estimated 100,000 workers in the industry between
1986 and 1989.
    Japanese yards topped world order books at end-December,
followed by South Korea and Taiwan, according to Lloyd's
Register of Shipping.
    However, falling orders and declining international
competitiveness due to the strong yen led to heavy losses in
the industry, the sources said.
    Four of Japan's six major heavy machinery and shipbuilding
companies reported current deficits in the first half of the
year to March 31 and five of them are expected to report
current deficits for the whole of 1986/7, they said.
    The shipbuilding companies' streamlining program will raise
productivity to compete with South Korean yards which have also
been hard hit by declining orders and low ship prices in recnt
years, the sources said.
    In Japan, no single yard leads the industry, resulting in
fierce competition and slow progress in reducing capacity. The
two largest firms -- Mitsubishi Heavy Industries Ltd <MITH.T>
and Ishikawajima-Harima Heavy Industries Co Ltd <JIMA.T> --
account for only 30 pct of ships built, the sources said.
    "World shipowners hope Japanese yards can manage to ride out
the recession as their technology is the best in the world,"
said an official at a major Japanese shipping company.
    The Japanese merchant fleet, the largest after Liberia's,
has no intention of shifting to other countries to buy ships,
and this will encourage Japanese yards, the sources said.


.I 11455
.C
earn
.W
******CONT'L ILLINOIS SAYS BRAZIL MORATORIUM COULD CUT 1ST QTR NET BY 10 MLN DLRS.
Blah blah blah.

.I 11456
.C
money-fx;interest;
.W
FED EXPECTED TO ADD RESERVES IN MONEY MARKET.
    NEW YORK, March 18 - The Federal Reserve is expected to
enter the U.S. Government securities market to add temporary
reserves indirectly via 1.5 billion dlrs or more of customer
repurchase agreements, economists said.
    They said the below-six pct Federal funds rate suggests the
Fed does not have a large reserve adding need. However, some
dealers reportedly backed out of the three-day System
repurchase agreements set on Monday, leaving the Fed with a
somewhat increased need to supply reserves.
    Federal funds, which averaged 6.05 pct yesterday, opened at
5-15/16 pct and remained there in early trading.


.I 11459
.C
alum
.W
SURALCO BAUXITE REFINERY REOPENED.
    ROTTERDAM, March 18 - The 1.4 mln tonnes capacity bauxite
refinery at Paranam in Surinam, which closed at the end of
January after being sabotaged by anti-government rebels, has
now reopened, a spokesman for Dutch metals company Billiton
said.
    The refinery is run by Suralco, jointly owned by the U.S.
Company Alcoa and the Dutch company Billiton, which is a
wholly-owned subsidiary of Royal Dutch Shell.
    Production of alumina at the refinery is currently running
at around 3,000 tonnes a day and is expected to get back to
full capacity of 4,000 tonnes within a week, the Billiton
spokesman added.
    The refinery was forced to close at the end of January when
rebels cut the main power line.
    Earlier, the refinery had had to import some supplies of
bauxite, as rebel activity shut off supplies from Alcoa's mine
at Moengo in the east of the country.
    Billiton's mine at Onverdacht, between Paranam and the
capital Paramaribo, is still working but Moengo remains closed
and the refinery is continuing to import some bauxite, the
Billiton spokesman said.


.I 11460
.C
earn
.W
CONT'L ILLINOIS<CIL> SAYS MORATORIUM MAY CUT NET.
    CHICAGO, March 18 - Continental Illinois Corp said if the
Brazilian debt moratorium remains in effect, it may place its
medium and long term loans to Brazil on a cash basis.
    This would increase non-performing loans by about 380 mln
dlrs and reduce income before taxes and net income by about 10
mln dlrs in the 1987 first quarter and 35 mln dlrs for the full
year, company officials told a press briefing.
    Loans to Brazil at 1986 year end totaled 474 mln dlrs,
according to the annual report released at the briefing.
    In February 1987, the Brazilian government, citing a
declining level of foreign currency reserves, declared a
moratorium on the payment of interest on the country's medium
and long term debt obligations.
    Continental said it may take similar action on its loans to
Ecuador, which total 25 mln dlrs. This would reduce 1987
pre-tax and after-tax net by 800,000 dlrs in the first quarter,
and by two mln dlrs for the full year, the bank-holding
company's officers said.


.I 11462
.C
earn
.W
CYPRESS SAVINGS ASSOCIATION <CYPSA> 4TH QTR LOSS.
    FORT LAUDERDALE, Fla., March 18 -
    Shr loss 3.26 dlrs vs loss 2.75 dlrs
    Net loss 3,479,744 vs 2,939,619
    Year
    Shr loss 5.58 dlrs vs loss 2.20 dlrs
    Net loss 5,964,454 vs loss 2,341,818
    NOTE: Net includes tax credits of 108,798 dlrs vs 1,445,275
dlrs in quarter and 838,690 dlrs vs 1,124,805 dlrs in year.


.I 11464
.C
earn
.W
ZENITH LABORATORIES INC <ZEN> 4TH QTR LOSS.
    RAMSEY, N.J., March 18 -
    Shr loss 24 cts vs profit 23 cts
    Net loss 5,106,000 vs profit 5,120,000
    Sales 11.4 mln vs 20.4 mln
    Year
    Shr loss 19 cts vs profit 73 cts
    Net loss 4,062,000 vs profit 15.7 mln
    Sales 50.4 mln vs 80.5 mln
    Avg shrs 21.7 mln vs 21.6 mln
    NOTE: 1986 net includes tax credits of 2,742,000 dlrs in
quarter and 5,903,000 dlrs in year.


.I 11465
.C
earn
.W
CERADYNE INC <CRDN> 4TH QTR LOSS.
    COSTA MESA, Calif., March 18 -
    Shr loss 22 cts vs profit 10 cts
    Net loss 1,056,000 vs profit 427,000
    Sales 5,440,000 vs 4,982,000
    Avg shrs 5,229,542 vs 4,435,691
    Year
    Shr profit one ct vs profit 26 cts
    Net profit 29,000 vs profit 993,000
    Sales 19.1 mln vs 16.8 mln
    Avg shrs 4,947,632 vs 3,780,543


.I 11469
.C
acq
.W
CHEMCLEAR INC <CMCL> TERMINATES MERGER TALKS.
    WAYNE, Pa., March 18 - ChemClear Inc said it terminated
merger talks with Environmental Systems Co <ESC>.
    ChemClear said it was unable to reach agreement with
Environmental, which was considering buying ChemClear.
    ChemClear said it is considering other options, including
other business combinations and financing through commercial
lending and other financial institutions for internal
expansion.


.I 11470
.C
silver
.W
HANDY AND HARMAN SEES SUFFICIENT SILVER SUPPLIES.
    NEW YORK, March 18 - World stocks of silver are large
enough to accommodate any changes in the supply-demand equation
this year, with industrial consumption expected to again exceed
mine production, the dealer house Handy and Harman said in its
annual review of the silver market.
    The house estimated that the industry last year withdrew
20,000,000 ounces of silver from stocks to bridge a supply
deficit caused by a consumption rate of 403,000,000 ounces and
production level of 382,000,000 ounces.
    However, world stocks are huge, totaling 2,267,900,000
ounces at the end of 1986, it said.
    The review noted that world industrial consumption has been
on an uptrend since 1980, although offtake is still 14 pct
below the 1978 level of 442,000,000 ounces.
    Handy and Harman said 22,800,000 ounces of silver were used
to produce coins last year, up from 12,700,000 ounces in 1985,
with the demand getting a big boost from the production of U.S.
coins, including the American Eagle.
    It also said that in recent years Communist countries have
increased their silver imports and estimated that China and
East Germany alone took in 70,000,000 ounces of foreign silver
in the last five years.


.I 11472
.C
earn
.W
VISTA CHEMICAL <VC> SEES YEAR NET HIGHER.
    NEW YORK, March 18 - Vista Chemical co said it expects
earnings for the year ending September 30 to be up
substantially, but extensive planned downtime at two of its
plants is expected to affect third quarter results.
    It said it is looking at a number of financial options for
increasing shareholder value but did not elaborate.
    The company earned 30.2 mln dlrs or 1.66 dlrs per share
before an extraordinary item in fiscal 1986.
    Vista said sales for the year are expected to be
"comparable" to fiscal 1986's 550.1 mln dlrs.


.I 11474
.C
pet-chem
.W
ARISTECH <ARS> TO INCREASE PRODUCTION CAPACITY.
    PITTSBURGH, March 18 - Aristech Chemical Corp said it plans
to increase production capacity for three of its key product
lines: polypropylene, bisphenol-A and phenol.
    Aristech said the polypropylene expansion involves a major
modernization of its Neal, W. Va., polypropylene plant.
    When completed, Aristech said, the project would increase
the plant's annual production to 264 mln pounds from 165 mln
pounds now.
    Aristech said the expansion will increase the company's
total polypropylene, a thermoplastic resin, capacity to 600 mln
pounds annually from 515 mln pounds now.
    Aristech also said it will expand bisphenol-A and phenol
production at its Haverhill, Ohio plant.
    It said the project will raise its bisphenol-A, which is
used to make polycarbonate and epoxy reins, capacity to 192 mln
pounds per year from 165 mln pounds now.
    Aristech added that phenol production will increase to 610
mln pounds per year from 585 mln pounds a year now.
    Phenol is used to make phenolic resins and adhesives for
engineering plastics, the company said.


.I 11475
.C
acq
.W
CAMCO SIGNS LETTER OF INTENT FOR REED TOOL.
    LONDON, March 18 - Pearson Plc <PSON.L> said <Camco Inc>,
its 65.4 pct owned U.S. Oil and oil services subsidiary, signed
a letter of intent covering Camco's purchase from Baker
International Corp <BKO.N> of substantially all the business of
<Reed Tool Co>.
    Reed, a leading manufacturer of drilling bits, had sales
for 1986 of around 76 mln dlrs.
    The transaction is subject to negotiation of a definitive
agreement approved by the Baker and Camco boards and by the
U.S. Department of Justice, with which talks are already taking
place concerning the combination of Baker and Hughes Tool.
    Baker International has proposed a merger with Hughes Tool
which could create a 1.2 billion dlr oilfield services company.
    Pearson shares were down 4p to 567 after the announcement.


.I 11481
.C
earn
.W
FIRST CONNECTICUT <FCO> SETS QUARTERLY PAYOUT.
    BRIDGEPORT, Conn., March 18 -
    Qtly div 25 cts vs 25 cts prior
    Pay April 24
    Record April Three
    NOTE: First Connecticut Small Business Investment Co.


.I 11485
.C
earn
.W
STONE AND WEBSTER INC <SW> SETS QUARTERLY.
    NEW YORK, March 18 -
    Qtly div 40 cts vs 40 cts prior
    Pay May 15
    Record April One
   


.I 11486
.C
earn
.W
CREDO PETROLEUM CORP <CRED> 1ST QTR JAN 31 NET.
    DENVER, March 18 -
    Shr profit one ct vs loss 27 cts
    Net profit 22,000 vs loss 763,000
    Revs 161,000 vs 316,000
    NOTE: Prior year net includes 1,209,000 dlr writedown of
oil properites and 314,000 dlr tax credit.


.I 11488
.C
earn
.W
ATT <T> SETS PAYOUT FOR REGULAR DIVIDEND.
    NEW YORK, March 18 -
    Qtrly div 30 cts vs 30 cts prior
    Pay May One
    Record March 31


.I 11489
.C
money-fx
.W
GULF ARAB STATES MOVE TOWARDS ECONOMIC INTEGRATION.
    ABU DHABI, March 18 - Finance and economy ministers of the
six-nation Gulf Cooperation Council (GCC) have ended talks
after adopting resolutions and recommendations aimed at
boosting economic integration.
    But the ministers from Bahrain, Kuwait, Oman, Qatar, Saudi
Arabia and the United Arab Emirates (UAE) did not endorse a
resolution on a common currency exchange rate system.
    The UAE's Minister of State for Finance and Industry, Ahmed
Humaid al-Tayer, told reporters after the two-day talks that
the ministers referred the issue back to GCC central bank
governors for further discussion.
    He said the governors, who agreed in January on a proposed
denominator on which the six currencies should be based, were
asked to resubmit the recommendation before July, when finance
ministers were due to meet in Saudi Arabia.
    Bankers said the central bank governors would meet soon to
discuss the issue, adding there was a possibility that a new
system could be submitted for final approval to a GCC summit
conference scheduled to be held in Saudi Arabia late this year.
    The denominator approved by the governors has not been made
public, but banking sources said it could be similar to the
European Monetary System (EMS).
    Tayer said the ministers agreed in principle to allow GCC
citizens to set up businesses and work in any member state.
They also agreed in principle on a recommendation for citizens
to buy and own shares of GCC shareholding firms.
    He said the ministers discussed a report on imported goods
containing radiation caused by last year's Chernobyl nuclear
disaster in the Soviet Union, and agreed all products with
excessive levels should be returned to the country of origin.


.I 11490
.C
earn
.W
HARTFORD STEAM <HBOL> SETS SPLIT, DIVIDEND HIKE.
    HARTFORD, Conn., March 18 - Hartford Steam Boiler
Inspection and Insurance Co said its board declared a
two-for-one stock split and raised the quarterly dividend to 25
cts postsplit from 20 cts, both payable April 30 to holders of
record April 10.


.I 11491
.C
crude
.W
DOE SECRETARY FAVORS HIGHER SPR FILL RATE.
    WASHINGTON, March 18 - Energy Secretary John Herrington
said he believes the Reagan Administration will review its
decision to cut the fill rate of the Strategic Petroleum
Reserve because of a department report issued yesterday warning
of growing U.S. dependence on oil imports.
    "As part of this study, I think the Administration will
take the fill rate under review," Herrington said at a House
Energy subcommittee hearing.
    The Administration has proposed cutting the fill rate from
75,000 barrels of oil per day to 35,000 bpd in fiscal year 1988
to save money.
    "My personal feeling is that is too low. I favor the
maximum fill rate (of 100,000 bpd)," Herrington said.


.I 11494
.C
earn
.W
CONT'L ILLINOIS <CIL> SEES IMPACT FROM TAX REFORM.
    CHICAGO, March 18 - The Tax Reform Act of 1986 will have a
substantial impact on Continental Illinois Corp, the company's
annual report says.
    One provision repeals the reserve method of providing for
bad debts for banks with over 500 mln dlrs in assets and
requires that tax loan loss reserves taken in the past, be
restored to current earnings status, it said.
    As a result, those amounts will be subject to federal
taxes, it said. No amounts were disclosed.
    Continental said it decided to deal with this change "in
its entirety" in 1987.
    Tax reform will also change foreign tax credit limitation
rules, and although the impact will not be material in the
short term, the Act will require, for the first time, that
income from certain foreign subsidiaries be taxable, the report
said.
    The new legislation also reduces existing tax credits by
17.5 pct in 1987 and 35 pct in 1988 and later years, it said.
    Continental's investment tax credits carryforwards of 12.8
mln dlrs at 1986 year end will be reduced to 10.6 mln dlrs in
1987 and, if not used in 1987, to 8.3 mln dlrs in 1988, it
said.
    Another provision of the Act could result in limiting the
use of tax credits if a change in ownership of Continental
takes place, the report said.
    This could happen if the Federal Deposit Insurance Corp
sells enough shares of Continental's common stock over the next
two years to cause a change in ownership, it noted.
    In December, the FDIC sold about one-third of its junior
convertible preference stock in Continental to the public in
the form of common stock.


.I 11496
.C
earn
.W
OESTERREICHISCHE LAENDERBANK AG [OLBV.VI] 1986.
    VIENNA, March 18 -
    Parent bank net profit 181.5 mln schillings vs 135.1 mln
    Parent bank balance sheet total 197.7 billion vs 182.2
billion
    Parent bank cash flow 877.4 mln vs 715.5 mln
    Dividend 12 pct vs 10 pct on nominal share capital of 1.5
billion vs 1.35 billion.
    Cons banking gp balance sheet total 239.7 billion vs 227.3
billion.


.I 11497
.C
earn
.W
******NL INDUSTRIES INC 4TH QTR SHR LOSS 28 CTS VS PROFIT SEVEN CTS.
Blah blah blah.

.I 11498
.C
veg-oil;grain;corn;
.W
EC OILS TAX, CANADA CORN RULING OPPOSED BY PANEL.
    WASHINGTON, MARCH 18 - The U.S. Senate Finance Committee
approved nonbinding resolutions urging the Reagan
administration oppose Canada's ruling on U.S corn imports and a
proposed new European Community tax on vegetable oils.
    The resolutions, approved by voice vote, now will be sent
to the Senate floor were they are expected to be approved.
    The EC oils measure, offered by Sen. John Danforth, R-Mo.,
urges the administration to take strong retaliatory measures if
the tax is approved by the EC Council of Ministers.
    Sen. David Durenberger, R-Minn., offered the corn amendment
which urges the administration to file a complaint with the
GATT if the U.S. believes the corn decision by Canada was
unjustified. Canada recently imposed a permanent duty of 85
cents per bushel on U.S. corn imports.


.I 11499
.C
earn
.W
FHLMC <FREPR> 4TH QTR NET.
    WASHINGTON, March 18 -
    net 65 mln vs 57 mln
    year
    shr preferred 14.87 dlrs vs 12.51 dlrs
    shr common 236.77 dlrs vs 197.40 dlrs
    net 247 mln vs 208 mln
    NOTE: Federal Home Loan Mortgage Corp. FHLMC had 14,998,210
preferred shares outstanding in 1986 vs 14,998,379 in 1985,
owned by about 3,000 member institutions of the 12 Federal Home
Loan Banks. FHLMC also has 100,000 shares of common, owned by
the Home Loan Banks.


.I 11501
.C
ship;grain;corn;
.W
U.S. CORN MARKET SKEWED BY SOVIET BUYING.
    By Andrew Stern, Reuters
    CHICAGO, March 18 - Recent purchases of U.S. corn by the
Soviet Union have skewed the domestic cash market by increasing
the price difference between the premium price paid at the Gulf
export point and interior levels, cash grain dealers said.
    Many dealers expect the USDA will act soon to reduce the
cash price premium at the Gulf versus the interior -- which a
dealer in Davenport, Iowa, said was roughly 20 pct wider than
normal for this time of year at 25 cents a bushel -- by making
it worthwhile for farmers to move grain.
    By lowering ASCS county posted prices for corn, the USDA
could encourage farmers to engage in PIK and roll corn sales,
where PIK certificates are used to redeem corn stored under the
government price support loan program and then marketed.
    If the USDA acts soon, as many dealers expect, the movement
would break the Gulf corn basis.
    "The USDA has been using the Gulf price to determine county
posted prices," one dealer said. "It should be taking the
average of the Gulf price and the price in Kansas City," which
would more closely reflect the lower prices in the interior
Midwest.
    "But we don't know when they might do it," an Ohio dealer
said, which has created uncertainty in the market.
    The USDA started the PIK certificate program in an effort
to free up surplus grain that otherwise would be forfeited to
the government and remain off the market and in storage.
    Yesterday, USDA issued a report showing that only slightly
more than 50 pct of the 3.85 billion dlrs in PIK certificates
it has issued to farmers (in lieu of cash payments) had to date
been exchanged for grain.
    With several billion dlrs worth of additional PIK
certificates scheduled to be issued in the coming months, the
USDA would be well advised to encourage the exchange for grain
by adjusting the ASCS prices, cash grain dealers said.
    A byproduct of the Soviet buying has been a sharp rise in
barge freight costs quoted for carrying grain from the Midwest
to the export terminals, cash dealers said.
    Freight from upper areas of the Mississippi have risen
nearly 50 pct in the past two weeks to over 150 pct of the
original tariff price. The mild winter and early reopening of
the mid-Mississippi river this spring have also encouraged the
firmer trend in barge freight, dealers noted.
    The higher transportation costs have served to depress
interior corn basis levels, squeezing the margins obtained by
the elevators feeding the Gulf export market as well as
discouraging farmer marketings, they said.
    "The Gulf market overreacted to the Soviet buying reports,"
which indicate the USSR has booked over two and perhaps as much
as 4.0 mln tonnes of U.S. corn, one Midwest cash grain trader
said.
    But dealers anticipate that once the rumors subside,
freight rates will settle back down because of the overall
surplus of barges on the Midwest river system.


.I 11503
.C
earn
.W
HRE PROPERTIES <HRE> CUTS QUARTERLY.
    NEW YORK, March 18 - HRE Properties said its board cut the
quarterly dividend to 45 cts per share from 57 cts, payable
April 20 to holders of record March 31.
    HRE said the board reduced the dividend due to the
continuing impact of overbuilding in its office building
markets and its inability to replace the income from high
yielding investments that have matured.
    HRE said in the first quarter ended January 31 it earned 38
cts per share, down from 47 cts a year before.


.I 11504
.C
earn
.W
HORN AND HARDART CO <HOR> 4TH QTR NET.
    LAS VEGAS, March 18 -
    Shr 1.27 dlrs vs two cts
    Net 18.8 mln vs 357,000
    Revs 126.0 mln vs 98.5 mln
    Avg shrs 14.7 mln vs 12.0 mln
    Year
    Shr loss 2.17 dlrs vs loss 65 cts
    Net loss 28.4 mln vs loss 7,225,000
    Revs 405.0 mln vs 356.2 mln
    Avg shrs 13.1 mln vs 12.2 mln
    NOTE: 1986 net both periods includes 15.0 mln dlr gain from
sale of real estate.
    1986 year net includes charge 34.0 mln dlrs from
restructuring of Bojangles' restaurant unit and charge
4,090,000 dlrs from exchange of notes for common stock.
    1985 year net includes charge 6,900,000 dlrs related to
foodservice unit and gain 2,400,000 dlrs from sale of
marketable securities.


.I 11505
.C
earn
.W
NL INDUSTRIES INC <NL> 4TH QTR DEC 31 LOSS.
    NEW YORK, March 18 -
    Shr loss 28 cts vs profit seven cts
    Net loss 10.7 mln vs profit 5,188,000
    Sales 119.3 mln vs 216.1 mln
    Year
    Shr loss 5.80 dlrs vs profit 30 cts
    Net loss 324.2 mln vs profit 21.5 mln
    Sales 549.3 mln vs 859.1 mln
    NOTE: Share after preferred dividends.
    NOTE: In July 1986, company set a dividend on Series C
preferred, effecting a spin-off of its chemical operations.
They unit has been accounted for as a discontinued operation.
    Fourth quarter and full year 1986 reflect non-recurring
charges from change in control at company. Fourth quarter 1986
also reflects writeoff of 20.7 mln dlrs of goodwill.
    Full year 1986 includes a charge of 224.6 mln dlrs taken in
the second quarter for asset revaluation and restructuring
costs.
    In fourth quarter 1986, reversion of pension plan surplus
assets completed. Fourth quarter and full year 1986 includes
net income of 81.5 mln dlrs or 1.34 dlrs a share.
    Company also gained 2.4 mln dlrs or four cts a share in
fourth quarter 1986, and 15.9 mln dlrs or 26 cts a share in
full year 1986, from adoption of accounting rule SFAS 87.
    In fourth quarter 1986, company also adjusted carrying
value of non-chemicals discontinued operations assets leading
to charge of 15.6 mln dlrs.



.I 11506
.C
gnp;trade;
.W
GERMAN RESEARCH INSTITUTE LOWERS GROWTH FORECAST.
    WEST BERLIN, March 18 - The DIW economic research institute
said West German economic growth in 1987 is unlikely to reach
the 1.5 pct rate it had forecast earlier this year.
    The institute, whose forecasts are more pessimistic than
those of the other four leading German institutes, said the
economy had passed its peak in the summer of 1986, and its
prospects had dimmed significantly since the autumn.
    The DIW repeated earlier predictions that gross national
product (GNP) in the first quarter of 1987 would contract in
real, seasonally adjusted terms against the weak final quarter
of last year. 
    The DIW said that even if the economy recovers in the
remaining three quarters, it was unlikely that demand and
production would rise strongly enough to bring GNP growth up to
1.5 pct.
    Other institutes and economists have recently revised their
forecasts for German 1987 growth to around two pct.
    In a report DIW disputed arguments by other economists that
the economy was showing mixed development, with domestic demand
healthy but foreign demand weak.
    DIW said the crucial split was between weak demand for
capital goods, and strong demand for buildings and consumer
goods, not between foreign and domestic demand.
    It noted that domestic demand for capital goods had been
hit in recent months by the weakness of exports, which had
caused West German firms to scale back investment plans.
    Service industries, unlike manufacturing industry, were
continuing to do well because they relied on consumer demand,
it said.
    In a separate report the HWWA economic research institute
in Hamburg said West Germany's real trade surplus would fall
markedly this year.
    However, the nominal trade surplus would show little change
from 1986's record 112.2 billion marks because of a further
improvement in the terms of trade on average in 1987 compared
with 1986, it said.


.I 11507
.C
earn
.W
(CORRECTED) - UNIVERSITY PATENTS INC<UPT> 2ND QTR.
    WESTPORT, Conn., March 18 - Qtr ends Jan 31
    Oper shr loss 24 cts vs loss 19 cts
    Oper loss 1,096,332 vs loss 794,711
    Revs 803,085 vs 442,420
    Six mths
    Oper shr loss 53 cts vs loss 43 cts
    Oper loss 2,375,844 vs loss 1,741,437
    Revs 1,471,257 vs 768,683
    NOTE: Prior year excludes losses from discontinued
operations of 13 cts per share in the quarter and 17 cts per
share in the year. (Corrects March 17 item to show losses
instead of profits. Also corrects quarter loss from
discontinued operations.)


.I 11508
.C
coffee
.W
N.Y. TRADERS SAY LATIN COFFEE PRODUCERS TO MEET.
    NEW YORK, March 18 - Several traders and analysts here told
Reuters Latin American coffee producers will meet this weekend
in Managua, Nicaragua. The purpose, they said, is to review the
breakdown of International Coffee Organization quota talks last
month and try to formulate a unified position ahead of possible
future negotiations.
    Two traders, who asked not to be named, said separately
Brazil is expected to attend the meeting along with most or all
of the Central American producers. The Central American
attendees would include Costa Rica and Honduras, who were part
of a minority producer group at the February talks that opposed
Brazil's position, they said.
    Another source, also requesting anonymity, said Colombia
probably will not attend.


.I 11509
.C
bop;trade;
.W
PERU HAS FIRST TRADE DEFICIT IN FOUR YEARS.
    LIMA, March 18 - Peru registered a 16 mln dlr trade deficit
in 1986, its first trade shortfall in four years, a central
bank statement said.
    The figure compared with a surpluses of 1.17 billion dlrs
in 1985, 1.01 billion in 1984 and 293 mln in 1983. The last
trade deficit was a 428 mln shortfall in 1982.
    Peru's exports fell to 2.51 billion dlrs last year from
2.98 billion in 1985. Last year's imports were 2.53 billion
dlrs against 1.81 billion dlrs in 1985.


.I 11510
.C
earn
.W
CRAFTMATIC/CONTOUR <CRCC> SEES HIGHER PROFITS.
    TREVOSE, Pa, March 18 - Craftmatic/Contour Industries Inc
said it would report substantial profits for the first quarter
of fiscal 1987 ending March 31.
    The company recorded net income of 732,000 dlrs, or 22 cts
per share, on revenues of 10.2 mln dlrs.


.I 11511
.C
crude
.W
U.S. OIL TAX BREAK PROPOSAL TO BE EXAMINED.
    WASHINGTON, March 18 - The White House said a proposal for
a tax break for the oil industry would undergo review.
    Spokesman Marlin Fitzwater said President Reagan had no
position on recommendations submitted by Energy Secretary John
Herrington to encourage investment in the hard hit domestic oil
industry.
    But Fitzwater noted that Reagan did have a fundamental
objection to tax rises and special tax breaks.
    He said that even though Herrington's recommendation did
not agree with existing policy, "We'll take a look at it."
    The review will be undertaken by the president's Domestic
Policy Council.
    Herrington's proposal was reported by the Washington Post
to have been made in a letter to Reagan submitting a study that
found the United States would be importing half of its oil by
the 1990s, threatening U.S. national security.


.I 11514
.C
earn
.W
WESTERN SAVINGS AND LOAN <WSL> 4TH QTR LOSS.
    PHOENIX, Ariz., March 18 -
    Shr loss 48 cts vs profit 77 cts
    Net loss 3,923,000 vs profit 11,551,000
    Year
    Shr profit 1.80 dlrs vs profit 2.32 dlrs
    Net profit 30,171,000 vs profit 36,667,000
    Loans 3.38 billion vs 3.17 billion
    Deposits 3.81 billion vs 3.28 billion
    Assets 5.55 billion vs 4.78 billion
    Note: Full name Western Savings and Loan Association.


.I 11516
.C
jobs
.W
FRANCE ANNOUNCES PLAN TO BOOST EMPLOYMENT.
    PARIS, March 18 - The government announced a three billion
franc program to combat long-term unemployment amid speculation
among political and economic analysts that it is positioning
itself for a period of economic reflation.
    The package presented to the cabinet of Prime Minister
Jacques Chirac by Social Affairs and Labour Minister Philippe
Seguin today is to be financed out of a 7.5 billion franc
contingency fund announced on February 25.
    Finance Minister Edouard Balladur previously ruled out a
reflationary program.
    Long-term unemployment, defined as being out of work for
more than one year, affects about 830,000 people or one third
of French unemployed, government figures show.
    The main measures of the employment program give employers
financial incentives to offer short-term work contracts of at
least two years and stress retraining to help the long-term
unemployed return to the labour market.
    Training subsidies and exemptions from social security
contributions are the main incentives for employers.
    "Companies tell us that we have to give them a strong
incentive to take on people who have fallen out of the labour
market and that's why the proposals...Are costly," an aide to
Seguin said.
    The analysts said speculation the government is considering
a reflationary program was sparked by Chirac spokesman Denis
Baudouin, who said yesterday that ministers were generally
agreed on the desirability of relaunching the economy.
    He appeared to contradict statements by Balladur ruling out
economic stimulation despite the government's revision of its
1987 growth forecast to about 2.0 pct from 2.8.
    Finance ministry officials later clarified Baudouin's
remarks, saying there was no question of any move to stimulate
the economy through a boost to consumer spending although
government policy allowed for increased industrial investment
from the proceeds of France's five-year privatisation plan.
    The 1987 budget allowed for 30 billion francs in revenue
from privatisation, to be split between repaying national debt
and providing state enterprises with fresh capital.
    Some political analysts said Baudouin's comments possibly
reflect widening differences within the RPR-UDF coalition on
social issues ahead of next year's presidential elections.
     Divisions began to show last December, when a wave of
strikes led by transport workers paralysed the country and
drove the government into a new mood of conciliation with
labour.
     Officials said that after the success of the privatisation
of Cie de Saint Gobain <SGEP.PA> and Cie Financiere de Paribas
<PARI.PA> the government had decided to speed up its five-year
privatisation program with the aim of completing a third of it
this year, ahead of the presidential elections expected in
1988.
    The accelerated program could provide additional unbudgeted
revenue to boost industrial and research investment and
spending on infrastructure such as the national motorway
network.
   The government also today revived a proposal, blocked last
year by Socialist president Francois Mitterrand, to encourage
more flexible working hours, which it says will boost jobs by
improving the competitiveness of French industry.
    The proposals allowing night-shift work by women and
variations in the standard 39-hour working week are to be put
to parliament as a self-contained draft bill after being vetoed
for procedural reasons by Mitterrand and later the Council of
State.


.I 11517
.C
acq
.W
AIR CANADA TO ACQUIRE CALGARY COURIER COMPANY.
    MONTREAL, March 18 - Air Canada, the state-owned airline,
said it signed a letter of intent to acquire 65 pct of EMS
Corp, a Calgary-based messenger service which operates in
Western Canada and the U.S..
    Gelco Corp (GEL) earlier said Air Canada agreed to buy its
Canadian Gelco Express Ltd unit for 54 mln U.S. dlrs.
    Air Canada said the acquisitions will complement its main
cargo business. It said it expects the courier market to grow
by about 25 to 30 pct a year.


.I 11519
.C
nat-gas
.W
U.S ENERGY SECRETARY PROPOSES OIL TAX INCENTIVES.
    WASHINGTON, March 18 - Energy Secretary John Herrington
said he will propose tax incentives to increase domestic oil
and natural gas exploration and production to the Reagan
Administration for consideration.
    "These options boost production, while avoiding the huge
costs associated with proposals like an oil import fee,"
Herrington told a House Energy subcommittee hearing. "It is my
intention to submit these proposals to the domestic policy
council and the cabinet for consideration and review."
    He said proposals, including an increase in the oil
depletion allowance and repeal of the windfall profits tax,
should be revenue neutral and promote domestic production at
the least cost to the economy and the taxpayers.
    "The goal of the Administration policies is to increase
domestic production. I would like to shoot for one mln barrels
a year."
    The proposals were based on a DOE study released yesterday
warning the United States was threatened by a growing
dependence on oil imports.
    "We project free world dependence on Persian Gulf oil at 65
pct by 1995," Herrington said.
    He said it was too soon to say what the Administration
policy on oil tax incentives would be and indicated there would
be opposition to tax changes.
    "Of course, to move forward with these kinds of options
would require reopening tax issues settled last year (in the
tax reform bill) -- an approach which has not, in general, been
favored by the administration. I think what we need is to
debate this within the Administration," he said.
    He said the proposals might raise gasoline prices.
    Herrington did not specifically confirm a report in today's
Washington Post that he had written to President Reagan urging
an increase in the oil depletion allowance.
    Asked about the report by subcommittee members, Herrington
said various proposals were under consideration and would be
debated within the Administration to determine which would have
the most benefits at the least cost.


.I 11520
.C
earn
.W
******MAY DEPARTMENT STORES CO RAISES DIVIDEND TO 28-1/2 CTS FROM 26 CTS A SHARE.
Blah blah blah.

.I 11522
.C
earn
.W
HUNT MANUFACTURING CO <HUN> 1ST QTR NET.
    PHILADELPHIA, March 18 - Ended March 1  
    Shr 34 cts vs 27 cts
    Net 2,405,000 vs 1,908,000
    Revs 33.5 mln vs 32.6 mln
    Avg shrs 7,114,000 vs 7,075,000


.I 11524
.C
earn
.W
******MAY DEPARTMENT STORES CO 4TH QTR SHR 1.38 DLRS VS 1.24 DLRS.
Blah blah blah.

.I 11525
.C
earn
.W
FIRST AMERICAN <FIAMA> SEES GAIN FROM SALE.
    NORTH PALM BEACH, Fla., March 18 - First American Bank and
Trust Co said its 88 pct owned Associated Mortgage Investors
<AMIMS> subsidiary has sold its New England operations for
about 2,100,000 dlrs in cash and 1,300,000 dlrs in stock,
resulting in a first quarter gain for First American of about
1,200,000 dlrs after tax.
    The company said the sale will complete Associated's
withdrawal from the general contracting business.


.I 11529
.C
acq
.W
FINANCIAL SECURITY <FSSLA> TO SELL BRANCH.
    DELRAY BEACH, Fla., March 18 - Financial Security Savings
and Loan Association said it has agreed to sell its Sunrise,
Fla., branch to Fortune Financial Group Inc <FORF> of
Clearwater, Fla., for a "substantial profit," subject to
regulatory approval.
    Terms were not disclosed.


.I 11532
.C
money-supply
.W
ITALY M-2 UP 2.8 PCT IN 3 MONTHS TO END JANUARY.
    ROME, March 18 - Italian M-2 money supply rose a
provisional 2.8 pct, seasonally adjusted, in the three months
to end January 1987, the Bank of Italy said.
    The bank said M-2, which measures notes and coins in
circulation plus bank and post office deposit accounts, fell to
a provisional 609,457 billion lire in January from a downwards
revised but still provisional 615,307 billion in December 1986.
    The provisional year-on-year rise in January was 10.2 pct,
compared with a downward revised and provisional 9.4 pct in
December.
    M-2A, similar to M-2 but excluding certificates of deposit
and including proceeds from bank repurchase operations, rose a
provisional 2.0 pct, seasonally adjusted, over the three months
to end January 1987.
    The bank said M-2A totalled a provisional 583,806 billion
lire at end January against a downwards revised and still
provisional 593,827 billion in December 1986.
    Year-on-year, M-2A increased by a provisional 8.4 pct in
January, compared with a downwards revised and provisional 8.1
pct in December.


.I 11533
.C
earn
.W
GOLDEN ENTERPRISES INC <GLDC> 3RD QTR FEB 28 NET.
    BIRMINGHAM, Ala., March 18 -
    Shr 15 cts vs nine cts
    Net 2,002,261 vs 1,168,638
    Revs 29.2 mln vs 29.3 mln
    Nine mths
    Shr 49 cts vs 36 cts
    Net 6,404,536 vs 4,623,295
    Revs 92.2 mln vs 88.2 mln


.I 11534
.C
gnp
.W
GERMAN RESEARCH INSTITUTE LOWERS GROWTH FORECAST.
    WEST BERLIN, March 18 - The DIW economic research institute
said West German economic growth in 1987 is unlikely to reach
the 1.5 pct rate it had forecast earlier this year.
    The institute, whose forecasts are more pessimistic than
those of the other four leading German institutes, said the
economy had passed its peak in the summer of 1986, and its
prospects had dimmed significantly since the autumn.
    The DIW repeated earlier predictions that gross national
product (GNP) in the first quarter of 1987 would contract in
real, seasonally adjusted terms against the weak final quarter
of last year.
           


.I 11535
.C
earn
.W
MORRISON KNUDSEN <MRN> SEES YEAR NET FALLING.
    NEW YORK, March 18 - Morrison Knudsen Corp said its
earnings for 1987 are likely to be lower than those for 1986
due to lower than expected growth in engineering and
construction and a previously-predicted decline in earnings of
its National Steel and Shipbuilding unit.
    The company earned 39.4 mln dlrs in 1986, including pretax
gains of 11.5 mln dlrs from pension income and 7,400,000 dlrs
from the settlement of vested pension obligations, down from
41.5 mln dlrs in 1985.
    It said "Lower than expected levels of new work booked in
the last quarter of 1986 and the first two-plus months of this
year have delayed the expected growth in the engineering and
construction area."  The company said it will remain profitable
in 1987 and results should strengthen as the year progresses. 
It attributed the decline in new work to more stringent bidding
standards and a competitive market.


.I 11536
.C
meal-feed
.W
U.S. EXPORT BONUS POULTRY FEED FOR NORTH YEMEN.
    WASHINGTON, March 18 - The Commodity Credit Corporation
(CCC) accepted a bid for an export bonus to cover the sale of
7,000 tonnes of mixed poultry feed to North Yemen, the U.S.
Agriculture Department said.
    The department said the feed is for delivery during April.
    As announced earlier the bonus was 90.00 dlrs per tonne,
made to The Pillsbury Company and will be paid in the form of
commodities from CCC stocks.
     An additional 143,000 tonnes of mixed poultry feed are
still available to North Yemen under the Export Enhancement
Program announced April 14, 1986, it said.


.I 11539
.C
grain;barley;
.W
CCC ACCEPTS EXPORT BONUS BID ON BARLEY TO ISRAEL.
    WASHINGTON, March 18 - The Commodity Credit Corporation
(CCC) accepted a bid for an export bonus to cover the sale of
30,000 long tons of barley to Israel, the U.S. Agriculture
Department said.
    The department said the barley is for delivery April 15/May
15 and the bonus awarded was 41.24 dlrs per ton.
    The bonus was made to Cargill, Inc and will be paid in the
form of commodities from CCC stocks.
     An additional 133,800 tons of U.S. barley are still
available to Israel under the Export Enhancement Program
announced June 17, 1986, it said.


.I 11542
.C
earn
.W
MAY DEPARTMENT STORES CO <MA> RAISES DIVIDEND.
    ST. LOUIS, March 18 -
    Qtly div 28-1/2 cts vs 26 cts previously
    Pay June 15
    Record June One


.I 11543
.C
acq
.W
GENCORP <GY> NAMES FINANCIAL ADVISERS.
    New York, March 18 - GenCorp Inc plans to use First Boston
Corp and Kidder, Peabody and Co as financial advisers on a
tender offer for the company by General Partners, a GenCorp
spokesman said.
    The spokesman, in response to questions from Reuters, said
the company does not yet have a comment on the 100 dlr per
share tender offer, launched by the partners today.
    First Boston and Kidder have been advisers to GenCorp in
the past, he said.
    General Partners is comprised of investors Wagner and Brown
and AFG Industries Inc, a glass manufacturer.


.I 11545
.C
coffee
.W
LATIN COFFEE MEETING TO BE HELD IN MANAGUA.
    MANAGUA, March 18 - Representatives from Brazil, Colombia,
Mexico and Nicaragua will meet here Friday to discuss the
economic impact of falling coffee prices, a Nicaraguan official
announced.
    Vice-minister of foreign trade Bernardo Chamorro said that
participating in the meeting will be the heads of the coffee
associations from the four countries.
    He did not say if the meeting would continue beyond friday.
    Chamorro said Nicaragua supports the establishment of
export quotas in an effort to boost sagging world prices.


.I 11548
.C
earn
.W
DCNY CORP <DCY> HIKES QTLY DIVIDEND.
    NEW YORK, March 18 - Discount Corp of New York said its
board of directors increased its quarterly cash dividend to 20
cts a share from 15 cts a share.
    DCNY said the dividend is payable April 15, 1987 to
shareholders of record April 1 , 1987.
    Since the last two-for-one stock split in May 1985, the
corpoartion has customarily declared 15-cnt-per-share dividends
for the first three quarters and a final fourth quarter
dividend based on its total earnings for the year.
    As previously announced, DCNY said its board has also
recommended a two-for-one common stock split to shareholders.
    If the split is approved at the May 13 annual meeting, the
quarterly dividend rate will be adjusted to 10 cts a share,
DCNY said.
   


.I 11549
.C
earn
.W
ST. JOSEPH LIGHT <SAJ> SETS SPLIT, HIKES PAYOUT.
    ST. JOSEPH, Mo., March 18 - St. Joseph Light and Power Corp
said its board declared a three-for-two stock split and raised
the quarterly dividend on presplit shares to 49 cts per share
from 47 cts.
    The company said the dividend is payable May 18 to holders
of record May 4 and the split is subject to approval by
shareholders at the May 20 annual meeting.


.I 11550
.C
bop;trade;
.W
PERU HAS FIRST TRADE DEFICIT IN FOUR YEARS.
    LIMA, March 18 - Peru registered a 16 mln dlr trade deficit
in 1986, its first trade shortfall in four years, a central
bank statement said.
    The figure compared with a surpluses of 1.17 billion dlrs
in 1985, 1.01 billion in 1984 and 293 mln in 1983. The last
trade deficit was a 428 mln shortfall in 1982.
    Peru's exports fell to 2.51 billion dlrs last year from
2.98 billion in 1985. Last year's imports were 2.53 billion
dlrs against 1.81 billion dlrs in 1985.


.I 11551
.C
acq
.W
BEVIS INDUSTRIES SEEKS BUYER FOR COMPANY.
    PROVIDENCE, R.I., March 18 - <Bevis Industries Inc> said it
retained Tucker Anthony and R.L. Day Inc to seek purchasers of
the company or its units.
    It issued no further details.
    The company, which makes stainless steel tubing for the
chemical, petrochemical, and oil industries, earned 1,045,000
dlrs or 51 cts a share in the nine months ending September 30,
1986. It had sales of 17.1 mln dlrs in the period.


.I 11552
.C
acq
.W
U.S. HOUSE PLAN SEEKS TO BAR FOREIGN TAKEOVERS.
    WASHINGTON, March 18 - A House subcommittee voted to give
President Reagan authority to block foreign takeovers of U.S.
companies similar to the takeover of Schlumberger Ltd's <SLB>
Fairchild Semiconductor Corp by Fujitsu Ltd which was
withdrawn.
    The House Energy and Commerce Subcommittee on Commerce
approved as an amendment to the overall House trade bill a
provision giving Reagan the power to block sales to foreign
companies if the sale was not in the national or economic
interest.                
    The takeover provision was sent to the full Energy and
Commerce Committee for consideration as part of the overall
trade bill which is being written by several House committees.
    The subcommittee's bill would bar imports of digital audio
recording equipment that is not made with anti-copying chips.
This provision is designed to protect U.S. companies from the
unauthorized use of U.S. designs in foreign products.
    The bill calls for an investigation of whether U.S.
engineering and construction firms are given adequate
opportunity to bid on Japan's civil works procurement practices
including the construction of the Kansai airport.
    The Energy and Commerce subcommitte rejected a plan offered
by Rep. William Dannemeyer, a California Republican, to require
the U.S. to pay investors one pct for the right to hold their
gold investments in government storage.
    His amendment called for the government to sell gold coins
and gold-backed bonds with maturities of 30 to 50 years to
investors to reduce the federal debt.               


.I 11554
.C
earn
.W
INERTIA DYNAMICS CORP <TRIM> 2ND QTR FEB 28 NET.
    PHOENIX, Ariz., March 18 -
    Oper shr 35 cts vs 29 cts
    Oper net 1,185,267 vs 1,001,315
    Sales 16.8 mln vs 12.4 mln
    Six mths
    Oper shr 42 cts vs 32 cts
    Oper net 1,420,815 vs 1,105,555
    Note: oper data does not include year ago qtr and six mths
loss from discontinued operations of 87,449 dlrs, or two cts
per shr.


.I 11555
.C
earn
.W
ATI MEDICAL INC <ATIM> 2ND QTR JAN 31 NET.
    GLENDALE, Calif., March 18 -
    Shr two cts vs eight cts
    Net 118,933 vs 296,272
    Revs 2,742,731 vs 1,840,129
    Six mths
    Shr two cts vs 12 cts
    Net 92,372 vs 444,975
    Revs 4,977,105 vs 3,296,110


.I 11560
.C
earn
.W
SAVANNAH ELECTRIC AND POWER CO <SAV> UPS DIVIDEND.
    SAVANNAH, Ga, March 18 -
    Qtly div 25 cts vs 22 cts prior
    Payable April 15
    Record April 1


.I 11563
.C
nat-gas
.W
******AMOCO SAID WELL OFF TRINIDAD FLOWS 53 MLN CUBIC FEET NATURAL GAS DAILY.
Blah blah blah.

.I 11565
.C
ship;crude;
.W
IRAQ SAYS IT HIT SHIP IN GULF OFF IRAN TODAY.
    BAGHDAD, March 18 - Iraq said its warplanes had hit a
vessel in the Gulf off the Iranian coast today, the third in
the past 24 hours.
    A military spokesman told the Iraqi news agency INA the
latest attack was at 1250 GMT. It earlier reported strikes at
0650 GMT and at 1930 GMT last night. The planes "dealt accurate
and effective blows" to the targets and returned safely to base.
    There was no immediate confirmation of the attacks from
Gulf shipping sources. The last confirmed Iraqi attack was on
on March 8, when an Iranian tanker was hit by a missile south
of Iran's Kharg island oil export terminal.


.I 11566
.C
earn
.W
MAY DEPARTMENT STORES <MA> 4TH QTR JAN 31 NET.
    ST. LOUIS, March 18 -
    Shr 1.38 dlrs vs 1.24 dlrs
    Net 213,000,000 vs 195,000,000
    Revs 3.37 billion vs 3.12 billion
    Avg shrs 153,000,000 vs 156,000,000
    Year
    Shr 2.44 dlrs vs 2.20 dlrs
    Net 381,000,000 vs 347,000,000
    Revs 10.38 billion vs 9.54 billion
    Avg shrs 154,800,000 vs 156,000,000
    NOTE: 1985 period ended Feb 1, 1986
    Share data restated for common stock split of July 21, 1986
    1986 and 1985 earnings reflect a charge of one ct a share
resulting from use of the LFIO method of inventory valuation
    4th Qtr 1986 earnings include pretax capital gain of 71.2
mln dlrs, or 30 cts a share from sale of Joseph Horne Co
Division in Pittsburgh
    NOTE: 4th Qtr 1986 earnings include a 62 mln dlr, or 20 cts
a share, pretax charge for costs associated with combining May
D and F and the Denver operating divisions
    4th Qtr 1986 earnings include a pretax charge of 26 mln
dlrs, or nine cts a share, for costs associated with several
debt repurchase transactions including retirement of 10 mln
dlrs of 11-7/8 pct debentures


.I 11567
.C
acq
.W
******NORSTAR BANCORP, FLEET FINANCIAL GROUP AGREE TO MERGE.
Blah blah blah.

.I 11568
.C
acq
.W
FIRST UNION <FUNC> ACQUISITION APPROVED.
    JACKSONVILLE, Fla., March 18 - First Union Corp said the
buyout of Commerce National Bank by its First Union National
Bank of Florida unit was approved by Commerce shareholders.
    According to the terms of the deal, First Union will pay
8.5 mln dlrs for the outstanding shares of Commerce National, a
bank with 43.2 mln dlrs in assets.


.I 11569
.C
crude;nat-gas;
.W
ENERGY/DRILLING INDUSTRY.
    BY JULIE VORMAN, Reuters
    HOUSTON, March 18 - The drastic cutbacks in U.S. drilling
last year are rapidly deflating the United State's natural gas
bubble, which could bring spot shortages in gas supplies next
winter and a modest recovery in the oilpatch, industry analysts
said.
    Faltering deliverability of natural gas, a commodity that
is difficult and costly to import in large quantities, could
more than double the current U.S. rig count to near 2,000 by
1990, some analysts said.
    The need to lock in future supplies of gas for utilities
and big industrial customers may also bring a resurgence of
activity in the Gulf of Mexico's offshore waters where some of
the nation's largest gas reserves are located.
    "We think an upturn in U.S. drilling is imminent," said
James Crandall, an analyst with Salomon Brothers Inc. "Many
companies appear to be switching from oil to gas drilling
because they're betting that the gas market will be back in
balance in a year or two."
    The prospect of diminishing gas supplies is welcome news
for drilling and oilfield service companies that barely
survived last year's plunge in oil prices from about 30 dlrs a
barrel to less than half that. Today's relatively stable oil
prices of about 18 dlrs a barrel are not enough to spur a
return to the heady days of 1981 when the U.S. drilling rig
count soared to a record high of more than 4,500 and oilfield
roustabouts commanded premium wages.
    The latest weekly Hughes Tool Co <HT> rig count, a
barometer of the oil industry's health, showed 761 U.S. rigs
active in what is traditionally the slowest time of the year.
    In 1986, the Hughes rig count began the year at 1,915 but
dived to a post-World War II low of 663 in July as world oil
prices experienced the sharpest decline in recent times.
    Ike Kerridge, a Hughes economist, said "In 1986, the United
States replaced only about 40 pct of the gas it used and that
replacement rate won't be any better this year."
    He added, "We don't have the options we do with oil.
Imports of gas from Canada are limited by pipeline capacity and
importing liquefied natural gas on ships will not be feasible
in the next 10 years because of the cost."
    Only about 6 trillion cubic feet of additional gas reserves
were discovered last year while U.S. consumption approached 16
trillion cubic feet, according to industry estimates.
    George Gaspar, an oil analyst with Robert W. Baird and Co
agreed that the need for gas supplies would set the stage for a
new cycle of gradual increases in U.S. drilling.
    "We anticipate that natural gas pipelines will need to
dedicate to their systems new gas reserves for 1989 and 1990
supplies. That means new drilling programs must begin no later
than mid-1988," Gaspar said.
    Gasper said he sees a new drilling cycle emerging that
could last until 1992 and that he expects the average rig count
to peak near 2,000 in December of 1989.
    Much of the search for new gas reserves is likely to be
conducted in the offshore waters of the Gulf of Mexico, where
federal leases on unexplored areas will revert back to the
government unless drilling begins in the next two or three
years. Some of the industry's biggest companies, such as Exxon
Corp <XON>, Mobil Corp MOB, and Union Texas Petroleum have
already indicated plans to increase spending for drilling later
this year in the Gulf of Mexico, Crandall said.
    For example, Conoco Inc, a Dupont <DD> subsidiary, will
spend 400 mln dlrs to build the Gulf of Mexico's deepest
production platform, which will produce 50 mln cubic feet of
gas per day.
    But T. Boone Pickens, who has acquired huge Texas and
Kansas gas reserves for his Mesa Limited Partnership <MLP> in
recent months, is not convinced that the drilling industry is
on the verge of a recovery.
    Pickens predicts the U.S. rig count will soon drop below
600 and will not increase significantly until oil prices do.
    "The rigs won't go back to work until the price of oil gets
above 30 dlrs a barrel," said Pickens, 58, adding he did not
expect to see the rig count top 2,000 again in his lifetime.
    Tenneco Inc <TGT>, one of the largest U.S. gas producers,
is skeptical that a need for additional gas drilling exists.
    Tenneco vice president Joe Foster said he did not expect
significant increases in drilling for gas until the early 1990s
when the U.S. gas reserves life will have declined to about
seven years' supply. Current spot market prices of about 1.50
dlrs per thousand cubic feet will need to rise to about three
dlrs to spur reserve replacement, he said.


.I 11570
.C
sugar
.W
SUGAR PRICES TOO LOW TO BOOST LATIN OUTPUT.
    By Richard Jarvie, Reuters
    RIO DE JANEIRO, March 18 - Latin American sugar producers
are awaiting further rises in world market prices before moving
to boost production, official and trade sources said.
    Although prices have risen to around eight from five U.S.
Cents per lb in the past six months, they are still below the
region's nine to ten cents per lb average production cost.
    The recent rise in prices has placed producers on the
alert, Manuel Rico, a consultant with the Group of Latin
American and Caribbean Sugar Exporting Countries (GEPLACEA),
told Reuters.
    However, Rico said, it would require another five to seven
cents to stimulate notable increases in output.
    "Producers are taking measures for increasing their
production when the prices are profitable," he said.
    Officials in Mexico, Guatemala and Ecuador said a continued
rise in prices would stimulate production, but industry leaders
in Panama and Costa Rica said there was still a long way to go.
    "The prices are ridiculous," said Julian Mateo, vice
president of Costa Rica's Sugar Cane Industrial-Agricultural
League. "At current prices nobody is going to consider
increasing production."
    Other producers are wary of committing funds to increasing
output, given the instability of world markets.
    An official at Colombia's National Association of Sugar
Cane Growers said they had no plans to raise export targets.
"The market is very unstable. What is happening is not yet
giving way to a pattern and so there is no reason to modify
anything."
    In 1985, the latest year for which full figures are
available, Central and South American nations produced 28 mln
tonnes, raw value, of sugar of which 12.3 mln were exported. A
year earlier, they had produced and exported about 800,000
more, according to the London-based International Sugar
Organization.
    Years of continuous low prices have plunged the sugar
industry in many countries in the region into a recession from
which it will be hard to recover.
    Miguel Guerrero, director of the Dominican Republic's
National Sugar Institute, said it would be difficult to boost
production even if prices recovered sharply.
    Output had slumped to under 450,000 tonnes a year from
900,000 in the late 1970s. Obsolete refineries, poor transport
and badly maintained plantations were barriers to any short
term recovery in output, he added.
    Plans of nearby Cuba, the world's largest cane sugar
exporter, to increase output to 10 mln tonnes a year by the end
of the decade seem ambitious, trade sources said. Output is
running well below the record 8.6 mln produced in 1970.
    Cuba suffers from run down plantations, harvesting problems
and poor processing facilities more than from low world prices,
since much of its output is sold to Eastern Bloc countries
under special deals. Last year, bad weather added to its
troubles, and output fell to 7.2 mln tonnes from 8.2 mln in
1985.
    The low world prices of recent years have led many
countries in the region to cut exportable production to levels
where they barely cover U.S. And, in the case of some Caribbean
countries, European Community (EC) import quotas, for which
they receive prices well above free market levels.
    Progressive reductions in the U.S. Quotas have led to
production stagnating or falling rather than being shifted to
the free world market.
    Peru, for example, shipped 96,000 tonnes to the U.S. In
both 1983 and 1984. This fell to 76,000 in 1986 and this year
its quota is only 37,000.
    A national cooperative official said that, as long as world
market levels continue at around half of Peru's production
cost, the future of the industry is uncertain.
    At a meeting of GEPLACEA in Brazil last October officials
stressed the need to find alternative uses for sugar cane
which, according to the group's executive-secretary Eduardo
Latorre, "grows like a weed" throughout the region.
    Brazil, the largest cane producer with output of around 240
mln tonnes, uses over half to produce alcohol fuel. Cane in
excess of internal demand for alcohol and sugar is refined into
sugar for sale abroad to earn much needed foreign currency.
    The difference in the price the state-run Sugar and Alcohol
Institute (IAA) pays local industry and what it receives from
foreign buyers costs the government some 350 mln dlrs a year.
    Soaring domestic demand for both alcohol and sugar over the
past year, coupled with a drought-reduced cane crop, has meant
Brazil will have difficulties in meeting export commitments in
1987, trade sources said. Negotiations to delay shipments to
next year have been indecisive so far, the main sticking point
being how Brazil should compensate buyers for non-delivery of
sugar it had sold at around five cents per lb and which would
cost eight cents to replace.
    Brazilian sugar industry sources said new sugar export
sales were expected to be extremely low for the next year, with
the Institute wary of exposing itself to domestic shortages of
either alcohol or sugar and because of the need to rebuild
depleted reserve stockpiles.
    However, the situation could change dramatically if the
economy goes into recession and internal demand slumps.
    Sources within Latin America and the Caribbean hold little
hope for the region's sugar industry to return to profitability
unless the U.S. And EC change their policies.
    "The agricultural policies of the European Community and of
the United States have caused our economies incalculable harm
by closing their markets, by price deterioration in
international commerce and furthermore by the unfair
competition in third countries," Brazil's Trade and Industry
Minister Jose Hugo Castelo Branco told the October GEPLACEA
meeting.
    The EC has come under prolonged attack from GEPLACEA for
what the group charges is its continued dumping of excess
output on world markets. GEPLACEA officials say this is the
main cause of low prices.
    GEPLACEA sees a new International Sugar Agreement which
would regulate prices as one of the few chances of pulling the
region's industry out of steady decline. Such an agreement
would have to have both U.S. And EC backing and industrialised
countries would have to see it as a political rather than a
merely economic pact.
    "They have to realise that the more our economies suffer,
the less capcity we have to buy their goods and repay the
region's 360 billion dollar foreign debt," GEPLACEA's Latorre
said.


.I 11571
.C
gold
.W
MORGAN BANK PLANS WARRANTS FOR GOLD AT 425 DLRS.
    ZURICH, March 18 - Morgan Guaranty Trust Co of New York
plans an issue of 12,000 warrants for gold bullion at 425 dlrs
an ounce, lead manager Morgan Guaranty (Switzerland) AG said.
    Each warrant, priced at 955 Swiss francs, entitled holders
to acquire five-ounce bars of .999 gold in the period from
April 30, 1987, to July 31, 1991, exercisable on Wednesdays.
    The warrants represented unsecured, unsubordinated
liabilities of the borrower. Payment was due April 16, and a
quotation on the Luxembourg bourse was planned.
    The warrants, when exercised, would be repaid in current
dollars based on the value of gold on the exercise date.
    The conditions represent a premium of about 145 dlrs an
ounce to the current gold price.
    A Morgan (Switzerland) official said that on the basis of
the maturity of four years and three months, the pricing
involved an implicit volatility of gold of 24.5 pct before the
warrants were in the money, compared with implicit volatility
of 30 pct for the Indosuez gold warrants and 26 pct for the
Citibank gold warrants recent issued with maturities of 18 and
24 months.


.I 11572
.C
acq
.W
NORSTAR <NOR>, FLEET <FLT> TO MERGE.
    ALBANY, N.Y., March 18 - Norstar Bancorp said that its
board and the board of Fleet Financial Group have approved a
definitive agreement to merge.
    A Norstar spokesman said that a press release containing
further details on the merger would be issued shortly.


.I 11573
.C
nat-gas
.W
AMOCO <AN> IN NATURAL GAS FIND OFF TRINIDAD.
    HOUSTON, March 18 - Amoco Corp said its WEQB-1 exploratory
well 39 miles east of Galeota Point on Trinidad's east coast
flowed 24 mln cubic feet of natural gas and 500 barrels of
condensate daily from one zone and 29 mln cubic feet of natural
gas and 600 barrels of condensate daily from a second.
    The company said both flows were through 40/64 inch chokes
and from zones between 10,000 and 13,000 feet in depth.  The
well, in 260 feet of water, was drilled to a total depth of
14,629 feet, it said.  It said the discovery was made in sands
previously untested in the area.


.I 11574
.C
earn
.W
ELDORADO BANCORP <ELDB> SETS 10 PCT DIVIDEND.
    TUSTIN, Calif., March 18 - Eldorado Bancorp said its board
declared a 10 pct stock dividend, Payable April 17 to
shareholders of record April three.


.I 11578
.C
acq
.W
TALKING POINT/GENCORP INC <GY>.
    By Patti Domm, Reuters
    New York, March 18 - The surprise 2.2 billion-dlr tender
offer for Ohio-based conglomerate GenCorp Inc will not be
enough to buy the company, analysts said.
    Analysts estimated the 100 dlr-per-share offer from General
Partners is 10 to 20 dlrs per share below the breakup value of
GenCorp. However, market sources and analysts said  uncertainty
surrounds any transaction because of the legal challenges to
Gencorp broadcasting licenses.
    Gencorp's stock rose 15-3/4 to 106-1/4 in heavy trading.
    "The expectation is either there will be someone else or
the bidder will sweeten the offer hoping to get management's
cooperation," said Larry Baker, an analyst with E.F. Hutton
group.
    Analysts said there is concern about challenges to
Gencorp's broadcast licenses for two television and 12 radio
stations. Some of the disputes, dating back about 20 years,
were brought by groups that alleged improper foreign payments
and political contributions.
    "I think it kind of muddies an already muddy situation,"
said Baker of the offer.
    Some arbitragers said they were concerned the ongoing issue
might be a stumbling block or result in a long period of time
for any transaction.
    A source close to General Partners, however, said General
Partners would apply to the Federal Communications Commission
for special temporary authority to hold the broadcast stations.
The source said if approved, the authority would allow a
transaction to be carried out.
    If it received the "short-form" approval, General Partners
would set up a trust which would hold the broadcasting
properties until the licensing situation is resolved.
    General Partners is equally owned by investors Wagner and
Brown and glass-maker AFG Industries Inc.
    Some market sources speculated an outside buyer, such as
General Partners, might even be be a catalyst to resolution of
the challenges since it would carry out GenCorp's plan to sell
the stations.
    GenCorp earlier this month reached an agreement with Walt
Disney Co to sell its Los Angeles television station, WHJ-TV.
Disney would pay 217 mln dlrs to GenCorp and 103 mln dlrs to a
group that challenged the station's license.
    GenCorp also has a pending agreement to sell WOR-TV in
Secaucus, N.J. to MCA Inc for 387 mln dlrs.
    General Partners said it intends to keep the company's
plastics and industrial products businesses and its tires and
related products segment.
    Charles Rose, an analyst with Oppenheimer and Co, said
that, on a breakup valuation, the company might be worth as
much as 125 dlrs per share. Rose estimated the aerospace
business could bring 30 to 40 dlrs per share or one billion
dlrs, as would DiversiTech, the plastics unit. Broadcasting,
including assets pending sale, might be 30 to 40 dlrs per
share, he said.
    The company, formerly known as General Tire
and Rubber Co, also has a tire business Rose estimated would be
worth five to 10 dlrs per share. He estimated the bottling
business might also be worth several dollars per share, he
said.
    Analysts said GenCorp chairman A. William Reynolds, who
became chairman last year, has been emphasizing the company's
Aerojet General and DiversiTech General businesses. GenCorp,
founded in 1915, became an unfocused conglomerate over the
years and analysts believe reynolds has helped it to improve.
    "The management's doing a very fine job in trying to deal
with the non-strategic assets of the company," Rose said.
    Analysts expect GenCorp to resist the tender offer, but
they declined to predict what steps the company might take.
They said it would be possible the company might consider a
leveraged buyout or restructuring to fend off the offer.
    General Partners holds 9.8 pct of GenCorp stock, and there
was some concern about "greenmail." Greenmail is the payment at
a premium for an unwanted shareholders' stock.
    "I would doubt they would greenmail them, but nothing
surprises me anymore," said Rose.
    GenCorp has not commented on the offer. It has retained
First Boston Corp and Kidder, Peabody and Co as advisers.
   


.I 11579
.C
acq
.W
******AMERICAN EXPRESS UP ON RUMORS 10 PCT OF SHEARSON TO BE SOLD TO JAPANESE FIRM, TRADERS SAY.
Blah blah blah.

.I 11581
.C
earn
.W
ADMAC INC <JPAC> 3RD QT JAN 31 LOSS.
    KENT, Wash., March 18 -
    Shr loss 1.51 dlrs vs profit eight cts
    Net loss 7,377,000 vs profit 384,000
    Sales 1,593,000 vs 4,366,000
    Nine Mths
    Shr loss 2.24 dlrs vs profit 16 cts
    Net loss 11,083,000 vs profit 628,000
    Sales 6,517,000 vs 12.6 mln
    Avg shrs 4,941,000 vs 3,926,000


.I 11582
.C
earn
.W
PACO PHARMACEUTICAL <PPS> 2ND QTR FEB 14 NET.
    LAKEWOOD, N.J., March 18 -
    Shr 19 cts vs 17 cts
    Net 767,000 vs 676,000
    Revs 9,476,000 vs 9,091,000
    Six mths
    Shr 47 cts vs 44 cts
    Net 1,897,000 vs 1,719,000
    Revs 19.5 mln vs 19 mln
    NOTE: Full name Paco Pharmaceutical Services Inc.


.I 11583
.C
earn
.W
PUBLICKER INDUSTRIES INC <PUL> 4TH QTR LOSS.
    GREENWICH, Conn., March 18 -
    Shr loss five cts vs loss 15 cts
    Net loss 619,000 vs loss 1,730,000
    Sales 3,138,000 vs 5,667,000
    Avg shrs 12.5 mln vs 11.5 mln
    Year
    Shr loss four cts vs loss 40 cts
    Net loss 343,000 vs loss 3,963,000
    Sales 13.4 mln vs 35.3 mln
    Avg shrs 12.5 mln vs 10.3 mln
    NOTE: 1986 year net includes gain 1,678,000 dlrs from
settlement of litigation with Belcher Oil Co, 375,000 dlr
provision connected with resignation of former president, legal
settlements and costs of 1,074,000 dlrs and 552,000 dlrs in
expenses from closing of contract packaging division.


.I 11585
.C
earn
.W
BIONOMIC SCIENCES INTERNATIONAL INC <BSII> LOSS.
    FENTON, Mo., March 18 - 2nd qtr Jan 31 end
    Shr loss three cts vs loss nine cts
    Net loss 112,400 vs loss 275,400
    Sales 318,100 vs 23,600
    Avg shrs 4,294,300 vs 3,028,326
    1st half
    Shr profit four cts vs loss 14 cts
    Net profit 165,600 vs loss 409,100
    Sales 546,600 vs 44,400
    Avg shrs 4,189,700 vs 3,028,326
    NOTE: Current year net includes gains on sale of assets of
25,000 dlrs in quarter and 396,000 dlrs in half.
    Net includes extraordinary loss 10,000 dlrs vs nil in
quarter and loss 10,000 dlrs vs profit 106,300 dlrs in half.


.I 11586
.C
earn
.W
PIEDMONT AVIATION INC <PIE> SETS QUARTERLY.
    WINSTON-SALEM, N.C., March 18 -
    Qtly div eight cts vs eight cts prior
    Pay May 18
    Record May One


.I 11587
.C
earn
.W
BIONOMIC SCIENCES <BSII> SEES PROFITABILITY.
    FENTON, Mo., March 18 - Bionomic Sciences International Inc
said it expects to start operating profitably by the fourth
quarter.
    The company today reported a profit of 165,600 dlrs for the
first half ended January 31 -- after a 396,000 dlr gain on the
sale of assets and a 10,000 dlr extraordinary loss.  A year
before it lost 409,100 dlrs after a 106,300 dlr extraordinary
gain.


.I 11588
.C
acq
.W
******NORSTAR SHAREHOLDERS TO GET 1.2 FLEET FINANCIAL SHRS PER NORSTAR SHARE IN MERGER.
Blah blah blah.

.I 11590
.C
rubber
.W
NEGOTIATORS PUT FINAL TOUCHES TO NEW RUBBER PACT.
    GENEVA, March 18 - Rubber producing and consuming
countries, which agreed on the bases of a new International
Natural Rubber Agreement (INRA) last weekend, are now putting
the final touches to the future accord, delegates said.
    They said discussions are focusing on conditions for entry
into force of the new INRA. The present pact, which expires in
October, required that governments accounting for 80 pct of
world exports and 80 pct of world imports approved or ratified
the pact before it became operational.
    Delegates said figures now being floated range between 65
and 80 pct.


.I 11592
.C
earn
.W
CERADYNE INC <CRDN> 4TH QTR LOSS.
    COSTA MESA, Calif., March 18 -
    Shr loss 22 cts vs profit 10 cts
    Net loss 1,056,000 vs profit 427,000
    Sales 5,440,000 vs 4,982,000
    Avg shrs 5,229,542 vs 4,435,691
    Year
    Shr profit one ct vs profit 26 cts
    Net profit 29,000 vs profit 993,000
    Sasles 19.1 mln vs 16.6 mln
    Avg shrs 4,947,632 vs 3,780,543


.I 11593
.C
earn
.W
FINANCIAL BENEFIT GROUP INC <FBGIA> YEAR LOSS.
    BOCA RATON, Fla., March 18 -
    Shr loss 11 cts vs loss 48 cts
    Net loss 254,000 vs loss 784,000
    Revs 94.1 mln vs 47.3 mln
    Avg shrs 2,317,000 vs 1,642,000
    NOTE: Share adjusted for stock dividend and reverse split.


.I 11594
.C
earn
.W
MEGAPHONE INTERNATIONAL INC <INFL> 4TH QTR LOSS.
    SAN FRANCISCO, March 18 -
    Oper shr loss three cts vs loss three cts
    Oper net loss 388,000 vs loss 452,000
    Revs 1,425,000 vs 1,126,000
    Year
    Oper shr loss 26 cts vs loss 15 cts
    Oper net loss 3,604,000 vs loss 2,108,000
    Res 5,712,000 vs 6,604,000
    NOTE: 1986 net both periods excludes 413,000 dlr gain from
settlement of old obligations.


.I 11595
.C
acq
.W
BUTLER <BTLR> COMPLETES SALE OF LIVESTOCK UNIT.
    KANSAS CITY, MO., March 18 - Butler Manufacturing Co said
it completed sale of its Livestock Systems division and part of
its Control division in separate transactions to two unrelated
parties.
    Butler's livestock systems division was sold to an investor
group including the president of the operations and certain
Control division assets were sold to Minneapolis-based Enercon
Data Corp.
    Terms of the transactions were not disclosed.


.I 11596
.C
earn
.W
CAROLINA POWER AND LIGHT CO <CPL> QTLY DIV.
    RALEIGH, N.C., March 18 -
    Qtly div 69 cts vs 69 cts prior
    Payable May one
    Record APril 10


.I 11597
.C
earn
.W
AMERICAN INTERNATIONAL GROUP <AIG> QTLY DIV.
    NEW YORK, March 18 -
    Qtly div 6-1/4 cts vs 6-1/4 cts prior
    Pay June 19
    Record June 5


.I 11598
.C
earn
.W
ROCHESTER GAS AND ELECTRIC CORP <RGS> IN PAYOUT.
    ROCHESTER, N.Y., March 18 -
    Qtly div 55 cts vs 55 cts prior
    Pay April 25
    Record March 31


.I 11599
.C
earn
.W
SERVICE CORP INTERNATIONAL <SRV> SETS QUARTERLY.
    HOUSTON, March 18 -
    Qtly div eight cts vs eight cts prior
    Pay April 30
    Record April 16


.I 11600
.C
earn
.W
VALLEY RESOURCES <VR> SETS SPLIT, RAISES PAYOUT.
    CUMBERLAND, R.I., March 18 - Valley Resources Inc said its
board declared a three-for-two stock split and raised the
quarterly dividend to 42 cts per share presplit from 38 cts,
both payable April 15, record March 31.


.I 11602
.C
acq
.W
NORSTAR <NOR>, FLEET <FLT> OUTLINE MERGER.
    PROVIDENCE, R.I., March 18 - Fleet Financial Group said
that its board and the board of Norstar Bancorp have agreed to
merge the two bank holding companies in a transaction which
would create a 23 billion dlr asset bank holding company.
    Under terms of the transaction, each Norstar shareholder
will receive 1.2 shares of Fleet common stock based on the
number of Fleet shares after giving effect to a previously
announced April one Fleet stock split.
     The two-for-one stock split will increase Fleet's
currently 25.7 mln outstanding shares to 51.5 shares. There are
about 34.9 mln Norstar shares outstanding.
    Fleet said the deal is expected to be completed by July one
1988, the date on which the nationalization of Rhode Island's
interstate banking law takes effect.
    For the full year ended december 31, Fleet, a Rhode Island
based bank holding company, reported net income of 136.7 mln
dlrs and assets of 11.7 billion dlrs. Norstar, an Albany N.y.
holding company, reported net income of 104.8 mln dlrs and
assets of 11.1 billion dlrs.
     Fleet comptroller Irv Goss said it is estimated that the
transaction will result in minimal dilution in Fleet/Norstar
earnings per share. It is the intention of both companies that
cash quarterly dividends following the combination not decline
for either company's stock holders, the company said.
    For 1986, Norstar issued 1.31 dlrs annually in cash
dividends on its common stock. Fleet's current annual
distibution on a pre-split basis would be equivalent to 1.68
dlrs a share.
    In addition, Fleet and Norstar have each granted the other
an option to purchase such number of authorized buy unissued
shares of common stock, that will constitute 24.99 pct of the
fully diluted shares outstanding.
    The transaction is subject to both regulatory and
shareholder approval.
    The companies said that after the proposed merger, the
combined banking holding wil be among the 25 largest in the
country.


.I 11607
.C
acq
.W
TECK TO INCREASE STAKE IN TRILOGY RESOURCE.
    Calgary, Alberta, March 18 - <Trilogy Resource Corp> said
<Teck Corp> agreed to purchase 4.5 mln Trilogy common shares at
one dlr per share in a private placement, which would increase
its stake in Trilogy to 37 pct from 29 pct.
    Trilogy also said its board approved a private placement of
3.5 mln common shares at a price of 90 cts per share to a group
of investors.
    The placement will be made through McNeil Mantha Inc.


.I 11608
.C
acq
.W
RABBIT SOFTWARE <RABT> TO MAKE ACQUISITION.
    MALVERN, Pa., March 18 - Rabbit Software Corp said it has
agreed in principle to acquire privately-held communications
hardware maker Micro Plus II Corp for about two mln common
shares, with closing expected by May.


.I 11609
.C
earn
.W
<ALTEX RESOURCES LTD> YEAR NET.
    Calgary, Alberta, March 18 -
    Shr six cts vs eight cts
    Net 643,000 vs 889,000
    Revs 3,934,000 vs 4,373,000


.I 11610
.C
acq
.W
<AMOUR INC> TO MAKE ACQUISITION.
    PHILADELPHIA, March 18 - Amour Inc said it has entered into
a letter of intent to acquire <Bard International Associates
Inc> for 70 mln common shares in a transaction that would give
former Bard shareholders control of the combined company.
    Bard makes tennis and squash racquets and accessories.


.I 11612
.C
earn
.W
MAY <MA> REPORTS STRONG 1ST QTR START.
    ST. LOUIS, March 18 - May Department Stores Co, reporting
record results for the fourth quarter ended January 31, said it
is encouraged about the new fiscal year by a strong start in
February and March.
    The company said its merger last year with Associated Dry
Goods, which was accounted for as a pooling of interests, is
"going very well." May said "We are acting more like one
company every day. Our expansion schedule is on track."
    May said it plans to invest more than 600 mln dlrs this
year to open 11 department stores, eight discount stores and
more than 240 specialty outlets.
    The company reported fourth quarter earnings of 213 mln
dlrs, or 1.38 dlrs a share, up from 195 mln dlrs, or 1.24 dlrs
a share a year earlier. Revenues advanced to 3.37 billion dlrs
from 3.12 billion dlrs.


.I 11614
.C
earn
.W
CRAMER INC <CRMR> 4TH QTR LOSS.
    KANSAS CITY, KAN., March 18 -
    Shr loss eight cts vs loss 1.39 dlrs
    Net loss 94,000 vs loss 1,569,000
    Sales 6,951,000 vs 5,518,000
    Year
    Shr profit four cts vs loss 2.95 dlrs
    Net profit 41,000 vs loss 3,333,000
    Sales 25.3 mln vs 22.9 mln


.I 11615
.C
acq
.W
AMERICAN TRAVELLERS <ATVC> TO MAKE ACQUISITION.
    WARRINGTON, Pa., March 18 - American Travellers Corp said
it has entered into an agreement to purchase ISL Life Insurance
Co of Dallas, a corporate shell with active licenses to operate
in 12 states, for about 400,000 dlrs.
    The company said closing is expected by late spring and
will result in American Travellers being licensed in seven new
states.


.I 11618
.C
earn
.W
OHIO ART CO <OAR> SETS QUARTERLY.
    BRYAN, Ohio, March 18 -
    Qtly div six cts vs six cts prior
    Pay May Eight
    Record April 10


.I 11620
.C
acq
.W
AMERICAN EXPRESS <AXP> UP ON SHEARSON RUMORS.
    NEW YORK, March 18 - American Express Co climbed 2-1/2 to
80-1/8 on rumors the company was about to announce an agreement
to sell 10 pct of its Shearson Lehman Brothers unit to Nippon
bLife Insurance of Japan, traders said.
    Speculation about an impending deal, rumored to be worth
600 mln dlrs, also sent shares of other U.S. brokerages up
sharply. PaineWebber Group Inc <PWJ> gained 1-5/8 to 37-1/8 and
Merrill Lynch and Co Inc <MER> rose 1-3/8 to 42-7/8.
    American Express officials declined comment but cited a
statement it released more than two weeks ago in which it said
it was studying matters of strategic importance.
    American Express officials also pointed out the earlier
statement, issued March one, said it is company policy not to
comment on rumors or speculation. The earlier announcement also
said American Express and Shearson were studying options
including expansion of capacity to meet international
competition and broadening access to capital.
    The latest rumors originated in Tokyo, traders said.
    If the rumors are true "it gives them a nice infusion of
capital for an attractive price," said Lawrence Eckenfelder,
analyst at Prudential-Bache Securities.


.I 11621
.C
earn
.W
CONT'L ILLINOIS SEES MONTHS OF BRAZIL DEBT TALKS.
    CHICAGO, March 18 - Continental Illinois Corp's <CIL>
Chairman John Swearingen said he sees negotiations to
reschedule Brazil's debt payments taking at least three to six
months.
    Brazil declared last month a moratorium on payment of
interest on its medium- and long-term debts. The moratorium is
expected to persist the entire time that debt scheduling talks
are under way.
    "I believe it will take three to six months, maybe longer,
for an arrangement to be worked out to reschedule Brazil's
debt," Swearingen told reporters at a press briefing.
    "I think Brazil will pay its debts in the long run. Just
how long the run is is anybody's guess," Swearingen said.
    Earlier the bank holding company said Brazil's moritorium
may force it to increase non-performing loans by 380 mln dlrs
and reduce pretax and net income by 10 mln dlrs in the first
quarter and 35 mln dlrs for the full year.
    The bank will decide March 31 whether to characterize these
loans as non-performing, William Ogden, chairman of the
Continental Illinois National Bank and Trust Co of Chicago,
Continental's largest subsidiary, said in response to an
inquiry.
    Ogden said the moratoriums will affect both pretax and net
income equally because the banking firm has tax credits to use.
    Swearingen predicted an increase in operating profits for
1987 because he sees higher income and reduced expenses.
Continental will reduce expenses through job cuts and reducing
office rental costs. In 1986 it cut about 850 positions.
    In 1986 it had net profits of 165.2 mln dlrs or 60 cts a
share, up from 150.5 mln dlrs or 53 cts a share.
    The bank transferred 459 mln dlrs of poor-quality loans and
other assets to the Federal Deposit Insurance Corp, FDIC,
during 1986. It can transfer bad loans under the terms of the
1984 restructuring agreement with the government.
    The bank will transfer the remaining 460 mln dlrs that it
is entitled to transfer to FDIC by September 26, 1987,
Swearingen said. It will choose loans based on ultimate loss
rather than their immediate effect on non-performing loans.
    In 1986 the bank's loans to the Midwest's middle market
rose 20 pct at a time of overall weak loan demand in the U.S.
    Concerning banking acquisitions, Swearingen said the bank
would like to buy additional suburban Chicago banks. In 1986 it
bought three small suburban banks.
    Swearingen said he is concerned that Continental will be
taken over because no bank in the Midwest region is large
enough to buy it, and New York money center banks are
prohibited by law from buying Illinois banks.
    He said, however, that the FDIC still has control over who
will eventually own the firm because it still holds the
equivalent of 148 mln common shares out of a total 215 mln.
    The FDIC sold 52 mln shares to the public last year and has
said it intends to sell the rest as quickly as possible. The
agency received the shares as part of its 4.5 billion dlrs 1984
bailout of the bank.
    Swearingen, who came out of retirement in 1984 to head the
struggling banking firm after a career as an oil industry
executive, said he will retire when the three-year period he
agreed to be Continental chairman ends in August. He would not
comment on a successor.
    The bank will expand its First Options of Chicago options
clearning unit into Tokyo, Swearingen said, but said its
doubtful lending to Japan will occur because that country
doesn't need external sources of cash.


.I 11622
.C
earn
.W
RELIABLE LIFE INSURANCE CO <RLIFA> UPS DIVIDENDS.
    ST. LOUIS, March 18 -
    Qtly div Class A 27.5 cts vs 26.4 cts prior
    Qtly div Class B 2.5 cts vs 2.4 cts prior
    Pay June One
    Record May One


.I 11623
.C
acq
.W
CROSS AND TRECKER <CTCO> TO SELL UNIT.
    CLEVELAND, March 18 - Cross and Trecker Corp said its
Warner and Swasey subsidiary will seek to sell its Grinding
Division to focus on other areas of its business.
    The company said the Grinding Division had sales last year
of about 18 mln dlrs. It makes grinding machines.


.I 11624
.C
earn
.W
NOVAR ELECTRONICS CORP <NOVR> 4TH QTR JAN THREE.
    BARBERTON, Ohio, March 18 -
    Shr loss eight cts vs loss eight cts
    Net loss 220,724 vs loss 210,120
    Revs 4,194,466 vs 4,224,633
    Year
    Shr profit eight cts vs profit four cts
    Net profit 207,514 vs profit 98,050
    Revs 17.8 mln vs 16.1 mln
    NOTE: Quarter net includes tax credits of 162,600 dlrs vs
236,100 dlrs.


.I 11625
.C
nat-gas
.W
CONSOLIDATED NATURAL <CNG> FORMS TRADING UNIT.
    PITTSBURGH, March 18 - Consolidated Natural Gas Co said it
has received Securities and Exchange Commission approval to
establish a wholly-owned natural gas marketing subsidiary
called CNG Trading Co.
    It said the new unit will operate in New York,
Pennsylvania, Ohio, West Virginia, Louisiana and Texas and
compete with other markets for delivery of low-cost natural gas
supplies.
    Consolidated said customers' needs will be met from a wide
range of low cost sources, including the spot market,
independent producers and brokers, and Consolidated's producing
affiliates - CNG Development Co of Pittsburgh, and CNG
Producing Co based in New Orleans.


.I 11626
.C
earn
.W
CORRECTION - FEDERAL PAPER <FBT> RAISES PAYOUT.
    In item appearing March 17 please read headline "FEDERAL
PAPER BOARD CO <FBT> RAISES PAYOUT."
    Also please read ... Qtly div 17-1/2 cts vs 17-1/4 cts.
    Corrects headline and dividend figure to show payout was
raised.

.I 11627
.C
ship
.W
SHELL CANADA <SHC> TO SELL TANKERS TO SOCANAV.
    MONTREAL, March 18 - Shell Canada Ltd said its Shell Canada
Products Ltd unit will sell three tankers, effective April one,
1987, to <Socanav Inc>.
    Terms were not disclosed.
    Shell also said it will contract exclusively from Socanav
normal marine distribution requirements for domestic markets,
with some exceptions, for an initial 10-year period.
    Shell also said its Shell Canadian Tankers Ltd unit will
lay off 13 employees and that Socanav will offer jobs to 41
employees.
   The three Shell vessels are Lakeshell, Eastern Shell and
Northern Shell, which range in size from 6,000 to 10,000
tonnes, Shell said.
   Shell Canada is 72 pct owned by Royal Dutch/Shell Group
<RD>.


.I 11629
.C
trade
.W
EC WARNS CONGRESS ON NEW TRADE BILL.
    By Robert Trautman
    WASHINGTON, March 18 - The European Community (EC) has
warned the U.S. House of Representatives that tough trade
legislation it is considering could prompt retaliation by U.S.
trading partners.
    The warning was sent in a letter from Sir Roy Denman, head
of the EC delegation in Washington, to Dan Rostenkowski,
chairman of the House Ways and Means Committee.
    A copy of the letter was made available to Reuters.
    Denman told Rostenkowski, an Illinois Democrat, he backed
aspects of the bill, such as one backing new talks under the
GATT and one excluding protection for the textile industry.
    But Denman disagreed with other provisions which would
require President Reagan to take retaliatory trade action
against nations with large trade surpluses with the U.S. and
would set new standards for judging unfair foreign trade
practices.
    Denman told Rostenkowski that GATT regulations prohibit
member nations from taking unilateral retaliatory action in
trade disputes unless the action is GATT-approved.
    He said "If the Congress makes retaliatory action mandatory,
then the United States would be in violation of its
international legal obligations and on a collision course with
its major trading partners."
    Denman added that a president should have flexibility in
enforcing trade laws, saying "in the last resort, any
administration must take its decision in light of the overall
national interest."
    Otherwise, he said, "the risk would be counter-reaction by
trading partners of the United States, i.e., retaliation or
enactment of mirror image legislation to be employed against
imports from the United States."
    Denman also said Congress could prompt retaliation if it
reduced the threshhold of unfair trade by making it easier for
firms to file unfair trade practice claims.
    Retaliation could also be prompted by relaxing standards
for findings that imports were injuring U.S. firms.
    "Changes in these standards must be agreed upon
multilaterally. They cannot be imposed by the United States
alone on the world trading system," he said.
    House leaders have rejected a plan by textile-state
legislators to add to the trade bill a provision to curb
imports of cloth and clothing, similar to a measure passed two
years ago but vetoed by President Reagan.
    There was concern by the leaders that Reagan would veto the
entire trade bill because of the textile amendment.
   


.I 11632
.C
acq
.W
FAIRCHILD PRESIDENT SEEKING MANAGEMENT BUYOUT.
    PALO ALTO, Calif., March 18 - Fairchild Semiconductor Corp
president Donald Brooks said he intends to take a management
buyout proposal to the company's parent at some point in the
future and substantial funding is available for such a
purchase.
    Fairchild is owned by Schlumberger Ltd <SLB>.
    Brooks also told a press conference that if management is
successful, it may later attempt to take the company public.
    "I am sure that if such a management buyout is to occur,
and I am hopeful that it does, the public market is one of the
avenues we will ultimately have to use to raise capital,"
Brooks said.
    Brooks also said the company would continue to attempt an
exchange of technology and manufacturing agreement with Fujitsu
Ltd if successful in its buyout bid.
    Futjitsu withdrew an offer to acquire some 80 pct of
Fairchild, a semiconductor maker, after U.S. government
officials expressed opposition to the transaction.
    Brooks told the news conference that any purchase would be
in the form of a management buyout and not a leveraged buyout.
    He also said the transaction could be financed through a
debt issue or conventional financing from investors.
    Brooks said management is pleased by a number of investment
proposals bought to them, but he added, "the investors must be
willing to invest in the future growth of the company and not
just selling off assets."
    Brooks also said he was not aware of any direct
intervention by the U.S. in an attempt to block the merger.
    "I am not aware of any direct contact between Washington
and Fujitsu, but that doesn't mean it doesn't exist," Brooks
said.
    He also said Fujitsu executives remain enthusiastic about a
link with Fairchild.


.I 11633
.C
wheat;grain;
.W
HOUSE FARM LEADER SEES BILLION DLR BUDGET CUTS.
    WASHINGTON, March 18 - The 1988 agriculture budget will
have to be cut by an additional one to two billion dlrs, the
chairman of a key house agriculture subcommittee said.
    Implementation of a 0/92 program, a tightening up of the
use of commodity certificates, and reconstitution of farms are
possibilities that will be studied to reduce farm spending,
said Dan Glickman, D-Kans., chairman of the House agriculture
subcommittee on wheat, soybeans and feedgrains.
    Speaking at the annual meeting of the National Grain and
Feed Association, Glickman said he learned this week from the
House budget committee that the agriculture committee will have
to reduce the fiscal year 1988 farm budget by up to two billion
dlrs from the 30 billion dlrs level already approved.
    Decisions on how to cut the farm budget will have to be
made very quickly in order to make any impact on the FY 1988
budget, Glickman added.
    Glickman also said his committee will not approve USDA's 
proposal to cut target prices by ten pct per year.
    "The administration's target price proposals are dead in
the water," he said.
    To cut the budget, Glickman said, "everthing is on the
table," except those moves that would reduce farmers' income.
    Glickman offered a list of possibilities that his committee
will study in order to cut farm spending.
    Implementation of a 0/92 program for 1987 winter wheat and
1988 feedgrains crops has been introduced by Glickman, which he
said would result in a 150-200 mln dlr savings for one year.
    Tightening up on the use of generic (in-kind, or "pik')
certificates will also be another option his committee will
study, Glickman said.
    While not committing himself for or against such action, he
said lawmakers have to examine recent government findings which
indicate certificates cost more than cash payments.
    Glickman said rules for the reconstitution of farms and
tightening up of the person definition for annual payment
limitations is another option and could save 100-200 mln dlrs.
    He also said increasing acreage set-aside requirements by
five pct for wheat and feedgrains at program sign-up was a move
that could save about one billion dlrs, but added that he would
not be in favor of such a change.
    Glickman also said that the Export Enhancement Program's,
EEP, spending authority of 1.5 billion dlrs is quickly being
used up, and Congress will have to decide whether to expand
this program while making cuts in other areas.
    Cuts in the EEP program are unlikely, he said.
    "I don't see right now that the EEP will be on the chopping
block," Glickman said.


.I 11634
.C
earn
.W
CPC <CPC> SEES 1987 HIGHER EARNINGS PER SHARE.
    NEW YORK, March 18 - CPC International Inc said it expects
1987 earnings per share to increase over 1986 levels.
    "We are confident that 1987 will top 1986 in earnings per
share and are optimistic about our longer-term future as well,"
the company said in its 1986 annual report.
    In 1986, CPC earned 219.2 mln dlrs, or 2.30 dlrs a share,
on revenues of 4.55 billion dlrs compared with income of 142
mln dlrs or 1.46 dlrs on sales of 4.21 billion dlrs in 1985.
The share figures are adjusted for a 2-for-1 split paid in
January.
    A share buyback program started last year reduced the
number of shares outstanding to 82.6 mln at year-end 1986 from
97.2 mln dlrs the end of 1985, adjusted for the split.
    The food and grocery products company also said it was the
subject of five stockholder lawsuits and one class action suit,
filed last November and December in Delaware, New York and New
Jersey.
    The suits are related to the company's purchase of its
shares from Salomon Brothers Inc after Salomon bought a block
of the stock from Ronald Perelman, who had acquired nearly 3.7
mln CPC shares, or 7.6 pct of the company, last year.
    The suits allege the company bought the shares back at an
artificially inflated price, violating securities laws,
breaching directors' fiduciary duties and wasting corporate
assets.
    CPC said the defendants, which include the company, its
directors, Salomon and Perelman, deny all the allegations of
improper conduct and are defending the suits.


.I 11635
.C
crude;nat-gas;
.W
U.S. ENERGY INDUSTRY SAID IN BETTER HEALTH.
     By PETER ELSWORTH, Reuters
     DALLAS, March 18 - The U.S. oil and gas industry is in
better health than it was a year ago, according to testimony
given to the Texas Railroad Commission at its annual state of
the industry hearing today.
     The Commission, which regulates the state's oil and gas
industry, heard testimony from a number of high-level company
executives reflecting a belief that the recent industry
downturn had bottomed out.
     "The attitude expressed here today so far is a great deal
more optimistic (than last year)," Commissioner James E. (Jim)
Nugent told Reuters.
     "It reflects their (the executives) belief that they are
seeing the bottom of the economic cycle," he added, "and with
just a few reasonable breaks this industry can begin to move
again."
     The energy industry was hard hit by the sharp drop in oil
prices, which fell from around 30 dlrs a barrel in late 1985 to
as low as 10 dlrs in mid-1986. Prices have since steadied to
around 18 dlrs a barrel.
     At the same time, a number of company executives testified
that the nation's domestic exploration and production segment
was still hurting and in need of government help.
     Production costs are considerably higher in the United
States than in such areas as the Middle East and as prices fell
many domestic producers were forced to shut down their
operations. Currently, there are only about 760 oil rigs
operating in the United States compared with an average of
nearly 2,000 in 1985.
     Citing a study released yesterday by the Department of
Energy, many said the falling production of domestic oil
coupled with increasing U.S. demand, was leading to a growing
dependency on imports, particularly from the politically
volatile Middle East.
     "In the U.S., 1986 petroleum production responded to lower
prices, increasing about 2.5 pct, or 400,000 barrels per day
(bpd)," said J.S. Simon, General Manager of the Supply
Department at Exxon Corp <XON>, the nation's largest oil
company.
     At the same time, Simon said "U.S. oil production declined
by 300,000 bpd, the first decline in several years," and "net
petroleum imports were up 25 pct to 5.3 mln bpd."
     Noting that while oil prices were expected to remain
between 13 and 20 dlrs a barrel, depending on OPEC's ability to
control production, Simon said demand is expected to remain at
1986 levels, leading to "a significant amount of spare
worldwide production capacity, in excess of 10 mln bpd."
     He said the surplus capacity would lead to continued
volatility and called for "governmental and regulatory policies
in support of the domestic petroleum industry."
     Citing the costs recently imposed by the federal
government through the 1986 tax code changes and "Superfund"
legislation, Simon called for the repeal of the windfall
profits tax, total decontrol of natural gas and improved access
to federal lands for oil and gas exploration.
     Simon did not mention an oil import fee, which many in the
industry have called for as a way of building up the nation's
domestic operations before imports reach such a level that
national security might be compromised.
     In yesterday's report, the Energy Department said imports
could make up 50 pct of U.S. demand by 1995, adding that
Persian Gulf producers will provide as much as 65 pct of the
free world's total oil consumption by that date.
     Arguing that "oil is a political tool in every nation on
earth," Frank Pitts, chairman of <Pitts Oil Co>, today called
for a variable oil import fee, among other measures, "before
the treacherous foothold of the Middle East is irreversible and
our national security is compromised."
     Royce Wisenbaker, Chairman of Wisenbaker Production Co,
agreed, saying that like many federal government programs that
were set up with good intentions, it would probably turn into a
"shambles."
     Wisenbaker added that he was optimistic for the future.
"For those of us who have managed to hold on, the worst is
over," he said.
     Roger Hemminghaus, President of Diamond Shamrock Refining
and Marketing Co, said he was "enthusiastic about the future,"
adding that he expected "an increase in profitability by
midyear."


.I 11636
.C
earn
.W
NOVAR ELECTRONICS <NOVR> SEES RESULTS IMPROVING.
    BARBERTON, Ohio, March 18 - Novar Electronics corp said it
expects improved earnings this year due to a rapid expansion of
its Logic One computerized buolding management system customer
base and expectations of good crime deterrent business.
    The company today reported earnings for the year ended
January Three of 207,514 dlrs, up from 98,050 dlrs a year
before.


.I 11638
.C
acq
.W
MITSUI <MITSY>, SECURITY PACIFIC <SPC> SET PACT.
    LOS ANGELES, March 18 - Mitsui and Co Ltd said it has
signed a letter of intent with Security Pacific Corp to buy 50
pct of Japan Security Pacific Finance Co Ltd, for an
undisclosed sum, to form a joint venture.
    Japan Security Pacific has assets of 200 mln dlrs.
    The joint venture will introduce various financial products
to the customer base of Mitsui and its group of companies, the
company said.
    Security Pacific will provide expertise in consumer and
commercial lending, as well as data processing support.
    Japan Security Pacific Finance is a wholly-owned subsidiary
of Security Pacific International Finance Inc, which is owned
by Security Pacific Corp.
    Security Pacific said in addition to originating consumer
and commercial loans and leases, the joint venture will market
related financial products and services.


.I 11639
.C
earn
.W
CAROLINA POWER <CPL> CANCELS GENERATING UNIT.
    RALEIGH, N.C., March 18 - Carolina Power and Light Co said
its board has decided to cancel coal-fired Mayo Unit Two, the
second unit planned for its Mayo Plant in Person County, N.C.
    The company said the 690,000 kilowatt unit was only about
one pct complete and was scheduled for commercial service in
1992.
    Carolina Power said the status of the unit had been under
review because of a decision by the North Carolina
Environmental Management Commission that would have required
the unit to be equipped with expensive sulphur dioxide-removing
scrubbers.
    Carolina Power said Unit One, which has been in operation
since 1983, meets all air quality regulations without scrubbers
through the use of low-sulphur coal, and "The addition of
scrubbers to Mayo Unit Two would have produced only marginal
air quality improvements."
    The company said it will be able to purchase lower-cost
power from Duke Power Co <DUK> for intermediate and peaking
purposes than the projected cost of power from Mayo Two with
scrubbers.  It said it will retain the Mayo Two site for later
development of a generating unit.
    Carolina Power said Mayo Two was projected to cost about
877 mln dlrs, including 200 mln dlrs for scrubbers.  "The
higher construction costs, plus higher operating costs, would
increase the cost of power produced by Mayo Unit Two with
scrubbers by about 90 mln dlrs per year."
    A company spokesman said the company has already spent
about 23 mln dlrs on Mayo Two. He said no estimate has yet been
made of the cost of canceling the plant, but the company does
not expect to take a charge against earnings.  He said Carolina
Power intends to include the cancellation costs in rate filings
it will make late this year or early next year.


.I 11642
.C
earn
.W
ALLISON'S PLACE INC <ALLS> 4TH QTR NET.
    LOS ANGELES, March 18 -Qtr ends Jan 31
    Shr seven cts vs 20
    Net 1,84,000 vs 387,000
    revs 9.1 mln vs 6.7 mln
    Avg shrs 2,804,752 vs 1,875,000
    12 mths
    shr 13 cts vs 33 cts
    Net 315,000 vs 627,000
    revs 32.4 mln vs 24.6 mln
    Avg shrs 2,475,943 vs 1,875,000
   


.I 11643
.C
earn
.W
CAROLINA POWER AND LIGHT CO <CPL> SETS PAYOUT.
    RALEIGH, N.C., March 18 -
    Qtly div 69 cts vs 69 cts prior
    Pay May One
    Record April 10


.I 11644
.C
acq
.W
PURITAN-BENNETT <PBEN> MAKES ACQUISITION.
    OVERLAND PARK, Kan., March 18 - Puritan-Bennedtt Corp said
it has acquired a majority interest in Medicom Inc, which makes
a heart monitor for use in diagnosing heart disorders, for
undisclosed terms.
    The company said the device will be sold under the name
Companion Heart Monitor.


.I 11645
.C
earn
.W
MURRAY OHIO <MUR> SEES HIGHER FIRST QUARTER NET.
    BRENTWOOD, Tenn., March 18 - Murray Ohio Manufacturing Co
said it expects first quarter earnings to be higher than the
year-ago 4,800,840 dlrs or 1.25 dlrs per share due to excellent
lawn and garden shipments.
    The company said bicycle sales were soft early in the
period, but recent orders and shipments have been running well
ahead of last year.
    It said it expects to meet analysts' projections of
earnings for the full year of 1.50 dlrs per share and it could
possibly exceed the estimate if orders continue strong.


.I 11646
.C
earn
.W
DEL-VAL FINANCIAL CORP <DVL> SETS PAYOUT.
    BOGOTA, N.J., March 18 -
    Mthly div 14-1/2 cts vs 14-1/2 cts prior
    Pay July One
    Record June 17


.I 11647
.C
earn
.W
ENRON <ENE> TO PAY DIVIDENDS ON PREFERRED.
    HOUSTON, March 8 - Enron Corp said it will pay accrued
second quarter dividends on the three series of preferred stock
it will redeem on May 1.
    The company said it will pay second quarter accrued
dividends to the redemption date of 53 cts per share on the
6.40 pct stock, 56 cts on 6.84 pct and 70 cts on 8.48 pct.


.I 11648
.C
grain;corn;
.W
USSR CORN BUYING MAY BE 3.5 MLN TONNES--AMSTUTZ.
    ****WASHINGTON, March 18 - The Soviet Union's recent corn
purchases from the United States could total as much as 3.5 mln
tonnes, U.S. Agriculture Undersecretary Daniel Amstutz said.
    "We are not sure how much (Soviets have bought) but we think
it could be as high as 3.5 mln tonnes," Amstutz told a House
Agriculture Appropriations Subcommittee.
    He added that China also will need to import more corn this
year than earlier anticipated, but he gave no figures.


.I 11650
.C
earn
.W
ALLISON'S PLACE <ALLS> SALES INCREASE IN FEBRUARY.
    LOS ANGELES, March 18 - Allison's Place Inc president
Marvin Schenker said company-owned stores sales for February
increased 82 pct over the same period last year.
    He said comparable store sales in February increased 36
pct.
    The company, which owns and franchises a total of 237
clothing outlets where all articles cost six dlrs, will
increase that figure to seven dlrs starting March 1, Schenker
said.
    He said the impact of that boost will start to be felt in
the early part of the company's second quarter and continue
throughout the year.
    Schenker said costs of the company's merchandise will not
increase.


.I 11651
.C
earn
.W
BORMAN'S INC <BRF> 4TH QTR NET.
    DETROIT, March 18 -
    Shr 1.10 dlrs vs 1.33 dlrs
    Net 3,065,000 vs 3,730,000
    Sales 273.9 mln vs 241.0 mln
    Year
    Shr 3.27 dlrs vs 2.62 dlrs
    Net 9,168,000 vs 7,338,000
    Sales 1.07 billion vs 987.2 mln
    NOTE: Fiscal 1987 net includes tax credits of 10 cts for
the fourth quarter and 1.04 dlrs for the year compared with 43
cts and 85 cts in the respective periods of fiscal 1986.


.I 11652
.C
earn
.W
(CORRECTED)-BANKERS TRUST NEW YORK <BT> PAYOUT.
    NEW YORK, March 18 -
    Qtly div 41-1/2 cts vs 41-1/2 cts prior
    Pay April 25
    Record March 31
    NOTE: Full name Bankers Trust New York Corp.
    (Company corrects pay date, April 25, not April 28 in story
that ran yesterday.



.I 11653
.C
earn
.W
NE ELECTRIC <NES> AUDITORS QUALIFY ANNUAL REPORT.
    NEW YORK, March 18 - New England Electric System's auditors
have again qualified the utility's annual report because of
uncertainty about whether its oil and gas subsidiary can
recover its investments.
    The qualification was noted in the annual report which New
England Electric released at a security analysts meeting today.
The auditors also qualified the company's 1985 report for the
same reason, noting the sharp drop in oil and gas prices in
early 1986.
    President Samuel Huntington told analysts the utility will
have to take a write-down of about 235 mln dlrs if Federal
regulators do not allow the company to pass on the losses cited
by the accountants to its rate payers.


.I 11654
.C
earn
.W
CORRECTED - FEDERAL PAPER <FBT> RAISES PAYOUT.
    MONTVALE, N.J., March 18 -
    Qtly div 17-1/2 cts vs 17-1/4 cts
    Pay April 15
    Record March 31
    NOTE: Full name Federal Paper Board Co.
    (Corrects headline and dividend figure in item appearing
March 17 to show dividend was raised.)



.I 11655
.C
earn;crude;nat-gas;
.W
NE ELECTRIC SEES HIGHER CONSTRUCTION OUTLAYS.
    NEW YORK, March 18 - New England Electric System <NES>
expects its cash construction spending to reach 205 mln dlrs
this year, up from 188 mln dlrs in 1986, the utility said in
material distributed at an analysts meeting.
    It said spending is expected to advance to 215 mln dlrs in
1988 and 220 mln dlrs in 1989.
    The utility said these totals exclude spending on New
England Hydro-Transmission being built to import electricity
from Quebec Hydro. New England Electric is the operator of this
venture as well as owning 51 pct of the project.
    The venture expects to spend 65 mln dlr this year, 105 mln
dlrs next year and 125 mln dlrs in 1989 to build transmission
lines from northern Quebec into New England, the utility said.
    New England Electric said internally generated funds will
cover all of its power plant construction costs this year and
65 pct of the 108 mln dlrs its retail distribution units plan
to spend in 1987.
    The company said it also expects to spend 60 mln dlrs on
its oil and gas activities this year, adding internally
generated funds are expected to provide 85 pct of this total.
    New England Electric said it plans to issue 30 mln dlrs
worth of pollution control bonds in 1987 and retire additional
higher cost preferred stock. Its Granite State Electric unit
plans to issue five mln dlrs of long term notes early this year
as well.
    The company said it does not plan to offer common shares
this year or in the foreseeable future, but expects to raise
about 40 mln dlrs in equity through the sale of stock under its
dividend reinvestment plan and employee share plans.
    President Samuel Huntington told the analysts the
construction spending projection is based on the expectation
that demand for electricity in the New England electric system
will grow about two pct a year for the next 15 years.
    However, the utility cannot ignore the potential for
sharper growth, he said, pointing out that demand was up 5.2
pct in 1986 and 4.7 pct per year in the past four years.
    He attributed this growth to declining electricity prices
and a strong New England economy.
    Huntington said New England Elecetric has "all but rejected
new coal fired plants" to supply additional power.
    He said the most attractive new power supplies are those
with short lead times which can be built in modules.
    Later, vice president Glenn Schleede said the utility is
looking at gas-fired, combined cycle generating units to supply
most of its new power needs, but has not rejected coal-fired
fluidized bed units.
    He explained that fluidized bed technology is available in
modular units, adding that Huntington was referring to the
traditional coal-fired plant which burns pulverized coal.


.I 11656
.C
earn
.W
RADA ELECTRONIC INDUSTRIES<RADIF> NINE MTHS NET.
    NEW YORK, March 18 - Ended December 31
    Shr three cts vs nine cts
    Net 220,000 vs 721,000
    Revs 4,920,000 vs 4,184,000
    Avg shrs 6,425,925 vs 6,599,000
    NOTE: Full name Rada Electronic Industries Ltd.


.I 11657
.C
wheat;grain;
.W
U.S. WHEAT GROWERS SET STATE DEPT TRADE MEETING.
    WASHINGTON, March 18 - The National Association of Wheat
Growers, NAWG, board of directors is scheduled to meet
Secretary of State George Schultz and Undersecretary of State
Allen Wallis to discuss the Department's current role in farm
trade policy, the association said.
    NAWG President Jim Miller said in a statement that the
organization wanted to convey to Secretary Schultz the
importance that exports hold for U.S. agriculture and the
degree to which farmers are dependent upon favorable State
Department trade policies to remain profitable.
    "Foreign policy decisions of the U.S. State Department have
in the past severely hampered our efforts to move our product
to overseas markets," he said.
    Miller noted Secretary Schultz is scheduled to meet next
month with representatives of the Soviet Union, and the NAWG
"wanted to be certain the secretary was aware of our concerns
regarding the reopening of wheat trade with the Soviet Union."
    The annual spring NAWG board of directors meeting is held
in Washington to allow grower-leaders from around the country
to meet with their state congressional delegations and members
of the executive branch.
    The purpose is to discuss the current situation for
producing and marketing wheat and help set the legislative and
regulatory agenda for the coming year, the NAWG statement said.


.I 11659
.C
crude
.W
DOE SECRETARY PROPOSES OIL TAX INCENTIVES.
    WASHINGTON, March 18 - Energy Secretary John Herrington
said he will propose tax incentives to increase domestic oil
and natural gas exploration and production to the Reagan
Administration for consideration.
    "These options boost production, while avoiding the huge
costs associated with proposals like an oil import fee,"
Herrington told a House Energy subcommittee hearing. "It is my
intention to submit these proposals to the domestic policy
council and the cabinet for consideration and review."
    "The goal of the Administration policies is to increase
domestic production. I would like to shoot for one mln barrels
a day," he said.
    The proposals were based on a DOE study released yesterday
warning the United States was threatened by a growing
dependence on oil imports.
    "We project free world dependence on Persian Gulf oil at 65
pct by 1995," Herrington said.


.I 11660
.C
earn
.W
CHILDREN'S DISCOVERY <CDCRA> 4TH QTR LOSS.
    NEW YORK, March 18 - 
    Shr loss 18 cts vs profit six cts
    Net loss 509,471 vs profit 163,840
    Revs 2,623,974 vs 1,835,580
    12 mths
    Shr loss 18 cts vs profit 10 cts
    Net loss 494,352 vs profit 173,948
    Revs 10.1 mln vs 3,551,429
    NOTE: 4th qtr loss reflects 290,000 dlrs of non-recurring
expenses related to senior management changes.
    Full name of company is Children's Discovery Centers of
America Inc.


.I 11661
.C
earn
.W
CPI CORP <CPIC> TO POST HIGHER 1986 RESULTS.
    ST. LOUIS, March 18 - CPI Corp said it expects to post
higher sales and earnings for its fiscal year ended February 7
when it officially reports results in three weeks.
    It said preliminary figures show total sales of 258 mln
dlrs, up 30 pct from 198 mln dlrs in its 1985 fiscal year. Net
earnings from continuing operations rose to 18 mln dlrs, up
almost 31 pct from 13.9 mln dlrs, while per share earnings from
continuing operations were 2.22 dlrs, up 23 pct from 1.80 dlrs.
There were 552,500 additional shares outstanding.


.I 11664
.C
wheat;grain;
.W
JAMAICA AUTHORIZED TO BUY PL 480 WHEAT - USDA.
    WASHINGTON, March 18 - Jamaica has been authorized to
purchase about 56,000 tonnes of U.S. wheat under an existing PL
480 agreement, the U.S. Agriculture Department said.
    It may buy the wheat, valued at 7.0 mln dlrs, between March
25 and August 341 and ship it from U.S. ports and/or Canadian
transshipment points by September 30, 1987.


.I 11665
.C
earn
.W
LAIDLAW TRANSPORTATION <LDMFA> SEES BETTER YEAR.
    Montreal, March 18 - Laidlaw Transportation Ltd said
earnings per share for the current fiscal year should increase
by "substantially more" than the 30 pct average annual growth
experienced in the last four years.
    Revenues for the year ended August 31 will be about 1.2
billion dlrs, including GSX Corp, the U.S. waste services unit
acquired from Imasco Ltd last year for 358 mln dlrs, Laidlaw
president Michael de Groote told analysts.
    Last year, Laidlaw had operating earnings of 66.2 mln dlrs,
or 63 cts per share, on revenues of 717.8 mln dlrs.
    De Groote also said the company expects "excellent results"
in the second quarter ended February 28, but would not be more
specific.
    He said his revenue estimate for fiscal 1987 does not
include possible further acquisitions and said that the
addition of GSX will produce increasing benefits in fiscal 1988
through fiscal 1990.
    De Groote said the increased earnings in the previous four
quarters was due partly to internal growth of about 15 pct. The
rest came from acquisitions, he said.
    Laidlaw expects to sell a small rubber recycling operation,
a subsidiary of GSX, within the next few weeks, but this will
not make any material contribution to earnings, de Groote said.
    He also said he is "not very optimistic" about the ongoing
negotiations to buy 50 pct of Tricil Ltd, a Toronto-based
chemical and solid waste services company with Canadian and
U.S. operations, from <Trimac Ltd> of Calgary.
    De Groote said that, regardless of the outcome of the
proposed Tricil acquisition, Laidlaw will decide within the
next 30 days whether to stay in the North American chemical
waste business through GSX Corp.
    "We feel it is a profitable business with good growth
potential and we now want to stay in it if we can get the right
management," de Groote said.
    Laidlaw financed the acquisition of GSX by its U.S.
subsidiary, Laidlaw Transportation Inc, with the proceeds of a
200 mln Canadian dlr preferred stock issue and borrowing.
    De Groote said the company will gain about 138 mln dlrs in
cash by August 31 from the exercise of warrants.
    De Groote also said waste services in fiscal 1987 will
represent about 49 pct of revenues, school buses will
contribute 49 pct and trucking about two pct.
    The trucking subsidiary in western Canada is performing
well and there are no plans to sell it, he said.
    He would not estimate the contribution of each segment to
earnings per share for the year. He also said that further
acquisitions of school bus operations in the U.S. are likely
within the next few months.


.I 11670
.C
trade
.W
PERU SHORT-TERM TRADE LINES RISE TO 430 MLN DLRS.
    Lima, march 18 - peru's short-term foreign trade credit
lines have more than doubled to 430 mln dlrs under president
alan garcia's 20-month administration.
    Central bank general manager hector neyra told reporters 
that many of the credits were for 90-day terms and could be
used several times a year.
    The trade credits stood at 210 million dollars when garcia
took office on july 28, 1985, and announced foreign debt
payments would be limited to 10 pct of export earnngs.
    Neyra told reuters that peru was current on interest
payments on short-term debt, including the trade credit lines
and on about 750 million dollars in so-called  "working capital"
credits.
    Neyra did not specify the source of the trade credit lines.


.I 11671
.C
gnp
.W
BRAZIL'S GDP GREW 8.2 PCT LAST YEAR.
    RIO DE JANEIRO, March 18 - Brazil's Gross Domestic Product,
GDP, rose by 8.2 pct in real terms last year following an 8.3
pct increase in 1985, the Geography and Statistics Institute
said.
    In money terms this equalled 3.6 trillion Cruzados, giving
per capita GDP of 26,120 Cruzados, or 1.6 pct above the level
achieved in 1980 before the recession of 1981-1983, the
Institute said in a statement.
    Agricultural output, hit by adverse weather, fell by 7.3
pct last year led by coffee production which was 46 pct down.
    Industry grew 12.1 pct, including capital goods by 21.6 pct
and consumer goods by 20.3 pct, while services were up 8.3 pct.


.I 11672
.C
earn
.W
ENSOURCE INC <EEE> 4TH QTR LOSS.
    HOUSTON, March 18 -
    Shr loss 60 cts vs loss 6.50 dlrs
    Net loss 2,012,000 vs loss 21.9 mln
    Revs 8.6 mln vs 13.5 mln
    Year
    Shr loss 1.04 dlrs vs loss 5.96 dlrs
    Net loss 3.5 mln vs loss 20.2 mln
    Revs 36.6 mln vs 52.1 mln


.I 11673
.C
crude;nat-gas;
.W
MEXICAN HYDROCARBON RESERVES FALL SLIGHTLY IN 1986.
    Mexico city, march 18 - mexico's proven reserves of liquid
hydrocarbons at end-1986 were 70 billion barrels, slightly down
from 70.9 billion a year ago and 71.75 billion in 1984, the
state oil company petroleos mexicanos (pemex) announced.
    Reserves were just 5.77 billion barrels in 1974, rose
sharply to 40.19 billion in 1978 and flattened out at 72
billion in both 1981 and 1982.
    In its annual report, pemex said average crude output in
1986 was 2.43 mln barrels per day, 202,000 bpd down on 1985.
Average exports were 1.29 mln bpd, down from 1.44 mln bpd.
    The company did not say what percentage of hydrocarbons was
crude oil, but has previouly said it was about 48 pct.
    Natural gas output in 1986 was 3.43 billion cubic feet per
day, down from 3.6 billion in 1985.
    Due mainly to the fall in oil prices to around 12 dlrs from
25 dlrs in the year, 58 wells, both exploratory and production,
were suspended, 38 of them in less productive areas than the
offshore campeche fields which accounted for 64 pct of
production.


.I 11674
.C
earn
.W
GREAT LAKES FEDERAL <GLFS> HIKES DIVIDEND.
    ANN ARBOR, MICH., March 18 - 
    Qtly div 15 cts vs 10 cts prior qtr
    Pay 17 April
    Record 3 April
    NOTE: Great Lakes Federal Savings and Loan is full name of
company.


.I 11675
.C
earn
.W
MURRAY OHIO <MYO> SEES HIGHER 1ST QTR EARNINGS.
    BRENTWOOD, Tenn., March 18 - The Murray Ohio Manufacturing
Co said it expects first quarter earnings to be higher than the
4,800,840 dlrs, or 1.25 dlrs per share, it recorded for the
first quarter of last year.
    The company, which produces lawn mowers and bicycles, said
earnings are ahead of last year due to increased lawn and
garden shipments in January and February and a record-setting
pace in March.


.I 11676
.C
earn
.W
ALLEGHANY CORP <Y> DECLARES 1987 DIVIDEND.
     NEW YORK, March 18 - Alleghany Corp said its board 
declared a stock dividend of one share of its common for every
50 shares outstanding, as the company's dividend on its company
for 1987.
    It said the dividend will be distributed on April 30, to
holders of record on March 30.
    Alleghany said cash will be paid in lieu of any fractional
shares of its stock.


.I 11677
.C
interest
.W
HOUSE SUBCOMMITTEE VOTES CREDIT CARD RATE CAP.
    WASHINGTON, March 18 - A House Banking subcommittee has
approved legislation to limit the interest rates charged by
banks and other credit card issuers.
    The Consumer Affairs and Coinage subcommittee bill would
limit credit card interest rates at eight percentage points
above the yield on one-year Treasury securities.
    If in effect now, the bill would limit credit card rates to
13.8 pct compared to a nation-wide average of 18 pct, the
subcommittee said.
    The bill now goes to the full House Banking committee for
further action.


.I 11678
.C
earn
.W
PREMIER INDUSTRIAL CORP <PRE> 3RD QTR NET.
    CLEVELAND, March 18 - Ended Feb 28
    Shr 39 cts vs 35 cts
    Net 11.5 mln vs 10.4 mln
    Revs 111.0 mln vs 104.6 mln
    Nine mths
    Shr 1.16 dlrs vs 1.04 dlrs
    Net 34.3 mln vs 30.8 mln
    Revs 335.2 mln vs 320.0 mln
    Avg shrs 26.7 mln vs 29.6 mln


.I 11680
.C
acq
.W
UNION <UCO> TO SELL UNION FLONETICS UNIT.
    SOUTH NORWALK, Conn., March 18 - Union Corp said it agreed
in principle to sell its Union Flonetics Corp subsidiary to
Irvin Kaplan, a Houston investor.
    The unit makes valves and marine specialty equipment for 
the military. Kaplan is also controlling shareholder of <Hunt
Valve Co Inc>.
    The amount of the cash transaction, expected to close in
April, was not disclosed.



.I 11683
.C
earn
.W
U.S. BANK INCOME SHOWS FIRST DROP IN 25 YEARS.
    WASHINGTON, March 18 - Problems in the farmbelt and
oilpatch regions contributed to the first decline in overall
income for U.S. banks in a quarter century, the Federal Deposit
Insurance Corp (FDIC) said.
    The nation's 14,181 commercial banks had net income of 17.8
billion dlrs in 1986, down slightly from 1985's record 18.1
billion dlrs.
    The total was still the second highest ever reported, but
it was the first time income had not grown since 1961.
    The figures reflected a radical split in the health of
banks in the two halves of the country, the FDIC said.
    In the East, one in 12 banks had losses last year, while
one in four banks west of the Mississippi River had losses.
    Nationwide, one out of five banks reported losses, the FDIC
said in the first of a new series of quarterly banking profiles
it planned to issue.
    "I don't remember a time when there was such a clear
distinction by geographic area," FDIC Chairman William Seidman
told reporters.
    He said that while the figures were not good, they showed
the problem did not lie with the banking system as a whole but
with regional differences in economic performance.
    Some 44 banks have failed so far this year, twice as many
as failed by this time a year ago, but Seidman said he doubted
the pace would continue. 
    On a positive note, banks increased capital to a record 208
billion dlrs last year, and there has been a slowing in the
number of new problem banks in all regions except the
Southwest, Seidman said.
    Banks' provision for losses from bad loans in the fourth
quarter increased to 21.7 billion dlrs, a 23 pct rise from a
year ago.
    Large banks -- those with assets of one billion dlrs or
more -- reporting fourth-quarter losses totaled 22, the FDIC
said.
    Seidman said it was too early to say what effect Brazil's
moratorium on debt interest payments would have on U.S. banks.
    He said bank deregulation had given managers more freedom
to run their banks and that an increase in failures was to be
expected.
    But this freedom from regulatory restraints also has meant
other banks that were better managed have gotten stronger,
Seidman said.


.I 11684
.C
earn
.W
SOMERSET SAVINGS BANK <SOSA> 4TH QTR FEB 28 NET.
    SOMERVILLE, Mass., March 18 -
    Shr 55 cts vs NA
    Net 2,512,000 vs 773,000
    Year
    Net 7,123,000 vs 3,098,000
    Assets 417.7 mln vs 251.1 mln
    Deposits 329.4 mln vs 230.1 mln
    Loans (net) 366.1 mln vs 205.2 mln
    NOTE: Some per shr amounts not available as company
converted to public ownership in July 1986.


.I 11686
.C
earn
.W
VESTAR SECURITIES INC <VES> SETS PAYOUT.
    PHILADELPHIA, March 18 -
    Qtrly div 30.1 cts vs 34.1 cts prior
    Pay April 14
    Record March 31
    NOTE: company said prior qtr includes end of year
additional four cts dividend.


.I 11687
.C
earn
.W
AMERITECH <AIT> REGULAR DIVIDEND SET.
    CHICAGO, March 18 -
    Qtly div 1.25 dlrs vs 1.25 dlrs
    Pay May 1
    Record March 31
    NOTE: Full name is American Information Technologies Corp


.I 11689
.C
earn
.W
HARTFORD NATIONAL CORP <HNAT> DECLARES DIVIDEND.
    HARTFORD, Conn., March 18 -
    Qtly div 30 cts vs 30 cts prior
    Pay April 20
    Record March 31


.I 11690
.C
earn
.W
ARKANSAS BEST CORP <ABZ> DECLARES QTLY DIVIDEND.
    FORT SMITH, Ark., March 18 -
    Qtly div nine cts vs nine cts prior
    Pay April 13
    Record March 30


.I 11691
.C
earn
.W
AUDITORS LIFT QUALIFICATION ON PS INDIANA <PIN>.
    INDIANAPOLIS, IND., March 18 - Auditors for Public Service
Co of Indiana Inc lifted a qualification, in effect for two
years, on its 1986 financial results, according to the
company's annual shareholders' report.
    PSI's report was qualified in 1984 and 1985 when its
auditors, Arthur Andersen and Co, questioned the utility's
ability to recover costs of its Marble Hill nuclear power plant
and to extend the maturity of its credit agreement.
    The company wrote off 141 mln dlrs of Marble Hill costs in
November, 1986 and repaid its final 20 mln dlrs in debt in
October, 1986, it said.


.I 11692
.C
earn
.W
MARSHALL INDUSTRIES <MI> 3RD QTR FEB 28 NET.
    EL MONTE, Calif., March 18 -
    Shr 14 cts vs 12 cts
    Net 1,017,000 vs 877,000
    Sales 68.1 mln vs 61.2 mln
    Nine Mths
    Shr 40 cts vs 17 cts
    Net 2,986,000 vs 1,215,000
    Sales 205.3 mln vs 174 mln
    Note: Per share figure reflects two-for-one stock split of
July 1986.


.I 11696
.C
earn
.W
FINANCIAL BENEFIT GROUP INC <FBGI> YEAR LOSS.
    BOCA RATON, Fla., March 18 -
    Shr loss 11 cts vs loss 48 cts
    Net loss 254,000 vs loss 784,000
    NOTE: Includes realized gains of one mln dlrs versus
840,000 dlrs.


.I 11697
.C
earn
.W
ARKANSAS BEST <ABZ> SEES LOWER FIRST QTR NET.
    FORT SMITH, Ark., March 18 - Arkansas Best Corp said its
1987 first quarter earnings will be significantly lower than
fully diluted earnings of 22-1/2 cts per share in last year's
first quarter.
    The company said pricing competition and lower traffic
levels in the motor carrier industry hurt its first quarter
results.
    However, the company said its furniture and tire operations
are more profitable this year than last year.
    Arkansas Best also said that if the industry sustains the
upcoming 2.9 pct motor carrier rate hike it will offset the
Teamster labor increase scheduled for April 1.
    It said the labor increase then will be 3.2 pct for ABF
Freight System, its largest unit.


.I 11698
.C
earn
.W
URS CORP <URS> 1ST QTR JAN 31 NET.
    SAN MATEO, Calif., March 18 -
    Shr primary 29 cts vs 26 cts
    Shr diluted 27 cts vs 23 cts
    Net 1,500,000 vs 1,008,000
    Revs 30 mln vs 23.1 mln
    Avg shrs pimary 5,254,000 vs 3,821,000


.I 11700
.C
earn
.W
TIE/COMMUNICATIONS INC <TIE> 4TH QTR LOSS.
    SHELTON, Conn., March 18 -
    Oper shr loss 1.28 dlrs vs loss 59 cts
    Oper net loss 46.0 mln vs loss 21.1 mln
    Revs 63.9 mln vs 77.8 mln
    12 mths
    Oper shr loss 1.65 dlrs vs loss 2.09 dlrs
    Oper net loss 59.3 mln vs 75.0 mln
    Revs 298.2 mln vs 321.3 mln
    NOTE: for the qtr and yr 1986, loss reflects pretax loss of
45.0 mln and 55.5 mln, which included a writedown of inventory
and restructuring charges amounting to 37.1 mln and 37.9 mln,
and a tax gain of 940,000 and 3,094,000.
    For the qtr and yr 1985, loss consisted of a pretax loss of
23.9 mln and 102.3 mln which included a writedown of inventory,
restructuring charges and loss on the sale of a division
amounting to 13.0 mln and 61.0 mln, and a tax gain of 3,036,000
and 28.5 mln.
    qtr 1985, excludes estimated loss 3,354,000 for disposal of
HCL Leasing Corp sold July 1986, as well as its operating
results prior to this date.
    year current and prior excludes loss 1,543,000, and
2,859,000, respectively, for estimated loss on disposal of HCL
Leasing Corp.
    qtr and year current excludes foreign tax 312,000, and
1,179,000, respectively, which payment would have been required
in the absence of foreign operating loss carryforwards from
prior years.


.I 11701
.C
acq
.W
U.S. HOUSE PLAN SEEKS TO BAR FOREIGN TAKEOVER.
    WASHINGTON, March 18 - A U.S. House subcommittee voted to
give President Reagan authority to block foreign takeovers of
U.S. companies similar to the takeover of Fairchild
Semiconductor Corp. by Fujitsu Ltd which was withdrawn.
    The Energy and Commerce Subcommittee on Commerce approved
as an amendment to the overall House trade bill a provision
giving Reagan the power to block sales to foreign companies if
the sale was not in the national or economic interest.
    The subcommittee rejected a proposal requiring the U.S. to
pay investors one pct for the right to hold their gold
investments in government storage. His amendment called for the
government to sell gold coins and gold-backed bonds with
maturities of 30 to 50 years to investors to reduce the federal
debt.


.I 11702
.C
acq
.W
SIEBE COMPLETES ACQUISTION OF RANCO <RNI>.
    NEW YORK, March 18 - <Siebe Plc> of the U.K. said it
completed the acquisition of Ranco Inc, following approval by
Ranco shareholders.
    According to the terms of the deal, Ranco holders will
receive 40 dlrs a share in cash. Ranco will be transferred to
one of Siebe's U.S. subsidiaries, Robertshaw Controls Co.
    Ranco produces automatic control devices and power controls
that regulate temperature, pressure, time sequencing, current,
fluid flow and humidity. Its Teccor unit makes a specialized
line of semiconductors.


.I 11703
.C
earn
.W
<HAWKER SIDDELEY CANADA INC> YEAR NET.
    TORONTO, March 18 -
    Shr 1.06 dlrs vs 1.54 dlrs
    Net 9,455,000 vs 13.4 mln
    Sales 418.7 mln vs 422.0 mln
    Note: 59 pct owned by Hawker Siddeley Group PLC


.I 11704
.C
crude
.W
NO IMMEDIATE PLANS TO CLOSE REFINERY - ESSO SAF.
    PARIS, March 18 - ESSO SAF <ESSF.PA>, the French subsidiary
of Exxon Corp <XON>, said it had no immediate plans to shut
down one of its two refineries. Exxon's new president Lee R.
Raymond said earlier that it could decide to close a French
refinery.
    An ESSO SAF spokesman said a closure was a hypothesis that
depended on the evolution of the market and refineries' ability
to make money. He said Port Jerome west of Paris and Fos sur
Mer on the Mediterranean had benefitted from new investment
over 1985-86 and had last year broken even after stock losses.
    The Port Jerome refinery has an annual production capacity
of seven mln tonnes while Fos sur Mer's is five mln, the
spokesman added.
    Industry sources said the easiest plant to dispose of would
be Fos sur Mer because it is a single refinery, while the Port
Jerome refinery is attached to a wider complex comprising a
petrochemical plant and a lubricant production plant.
    Raymond was quoted as saying in a published interview that
Exxon was reviewing its worldwide refinery operations and might
decide to close one of its French refineries.


.I 11707
.C
earn
.W
TEL OFFSHORE TRUST <TELOZ> UPS QUARTERLY PAYOUT.
    HOUSTON, March 18 -
    Qtly distribution 43.5884 cts vs 37.2427 cts in prior qtr
    Payable April 10
    Record March 31


.I 11710
.C
earn
.W
EMHART CORP <EMH> SET TO INCREASE EARNINGS.
    BOSTON, March 18 - Emhart Corp said it plans to increase
worldwide revenues and earnings at an annual compounded growth
rate of 15 pct and about 13 pct, respectively.
    It said these objectives were based on several assumptions,
including a four pct average inflation rate through 1989 and a
two pct to three pct GNP real growth.
    In 1986, Emhart reported a net loss of 10 mln dlrs or 35
cts a share, after a 90 mln after-tax restructuring charge,
which realigned the company's assets.
    Emhart has divested itself of many of its units to focus on
three primary markets--industrial products, consumer products,
and information and electronic systems.
    Emhart said industrial products should account for about 62
pct of projected 1987 revenues of 2.3 billion dlrs, while
consumer products should account for about 20 pct of those
revenues and information and electronic systems about 18 pct.


.I 11711
.C
fuel
.W
BELCHER TO RAISE HEAVY FUELS PRICES.
    NEW YORK, March 18 - The Belcher Co of New York, a
subsidiary of Coastal Corp <CGP>, said it will raise the posted
prices for number six fuel in New York 25 cts to 1.75 dlrs a
barrel, depending on grades.
    Effective March 19, the new prices are 0.3 pct sulphur
22.50 dlrs, up one dlr, 0.5 pct sulphur 21.75 dlrs, up 1.75
dlrs, 0.7 pct sulphur 21 dlrs, up 1.25 dlrs. One pct sulphur
20.25 dlrs, up one dlr, two pct sulphur 18.25 dlrs, up 25 cts,
2.2 pct sulphur 18 dlrs, up 25 cts, 2.5 pct sulphur 17.75 dlrs,
up 30 cts, and 2.8 pct sulphur 17.50 dlrs, up 50 cts.


.I 11712
.C
earn
.W
GRAPHIC INDUSTRIES INC <GRPH>4TH QTR JAN 31 NET.
    ATLANTA, March 18 - 
    Shr 27 cts vs 23 cts
    Net 1,713,000 vs 1,447,000
    Revs 46.9 mln vs 39.3 mln
    Year
    Shr 97 cts vs 78 cts
    Net 6,154,000 vs 4,855,000
    Revs 167.9 ln vs 130.4 mln


.I 11714
.C
earn
.W
CENTRAL PENNSYLVANIA FINANCIAL CORP <CPSA>PAYOUT.
    SHAMOKIN, Pa., March 18 -
    Qtly div 10 cts vs 10 cts in prior qtr
    Payable April 22
    Record April 10


.I 11715
.C
earn
.W
HARTFORD NATIONAL CORP <HNAT> REGULAR DIVIDEND.
    HARTFORD, Conn., March 18 -
    Qtly div 30 cts vs 30 cts in prior qtr
    Payable April 20
    Record March 31


.I 11717
.C
carcass
.W
BRAZILIAN RED MEAT OUTPUT DOWN SHARPLY - USDA.
    WASHINGTON, March 18 - Brazilian red meat production in
1986 fell more than 20 pct to 1.9 mln tonnes due to drought
which reduced slaughter weight and to herd rebuilding which
started because of high cattle prices, the U.S. Agriculture
Department said.
    In its report on World Production and Trade Developments,
USDA said that in 1987, beef production is expected to reach
2.3 mln tonnes.
    Pork production in 1986 rose 83 pct to 1.1 mln tonnes due
to the sharp rise in beef prices and is expected to remain at
that level this year, USDA said.


.I 11718
.C
acq
.W
******GENCORP ASKS SHAREHOLDERS TO POSTPONE ACTION IN TENDER OFFER.
Blah blah blah.

.I 11720
.C
acq
.W
MONY FINANCIAL BUYS UNITED ADMINISTRATORS <UAI>.
    NEW YORK, March 18 - <MONY Financial Services> said it
purchased United Administrators Inc in an effort to secure a
larger market share for its group insurance line.
    MONY said this acquisition, coupled with its purchase of
Kelly Associates in 1985, contributes to its goal of expanding
its group business and improving its product lines.


.I 11722
.C
earn
.W
BFI COMMUNICATIONS SYSTEMS INC 4TH QTR LOSS.
    UTICA, N.Y., March 18 -
    Shr loss 18 cts vs loss 20 cts
    Net loss 629,527 vs loss 697,847
    Revs 404,345 vs 1,558,951
    Year
    Shr loss 56 cts vs loss 1.81 dlrs
    Net loss 1,910,063 vs loss 5,744,588
    Revs 5,999,377 vs 6,347,702
    Avg shrs 3,441,513 vs 3,175,402


.I 11723
.C
acq
.W
FORTUNE <FORF> TO ACQUIRE MARINE SAVINGS.
    CLEARWATER, Fla., March 18 - Fortune Financial Group Inc's
Fortune Savings Bank subsidiary said it executed a definitive
agreement to buy <Marine Savings and Loan Association of
Florida> for 10.1 mln dlrs.
    It said the agreement has been approved by the directors of
both banks and is subject to approval of Marine shareholders by
a majority vote.
    Fortune said that under the agreement it will pay 20.10
dlrs cash for each of Marine's 500,000 shares outstanding,
among other things.



.I 11724
.C
acq
.W
HAWKER SIDDELEY CANADA TO SELL UNIT.
    TORONTO, March 18 - <Hawker Siddeley Canada Inc> said that,
due to poor market conditions for railway freight car
manufacturing, it plans to sell its Trenton Works division in
Trenton, Nova Scotia.
    Hawker Siddeley said it set aside a provision of 7.7 mln
dlrs for the proposed sale.
    It also said lower 1986 earnings were due to much lower
earnings in transportation equipment and losses in steel
castings and forgings, which offset gains in the mining sector
and improvements in forestry equipment.
    Hawker Siddeley also said demand for new railway equipment
was limited with export sales frequently restrained by
customers' financing difficulties.
    Demand for steel castings and wheels for Canadian railways
continued to be very depressed with maintenance requirements at
the lowest level in the past decade.
    However, there was demand for industrial casting due to
increased hydro-electric power generation, the company said.
    The company said manufacturing of mining machinery and
tunnelling equipment showed greatly improved results in the
U.S. and export markets, mainly China and India.
    The Orenda division maintained a high level of activity in
aircraft engine repair and overhaul and in the manufacture of
engine components.
    Sawmill equipment and skidder operations were affected by a
strike in British Columbia and the extended debate on U.S.
imports of Canadian lumber, but there were encouraging signs at
yearend, the company said.


.I 11726
.C
earn
.W
CENTRAL ILLINOIS <CIP> 12 MTHS FEB 28 NET.
    SPRINGFIELD, ILL., March 18 -
    Shr 2.04 dlrs vs 1.83 dlrs
    Net 76,172,000 vs 71,101,000
    Revs 621.7 mln vs 670.3 mln
    NOTE: Central Illinois Public Service Co is full name of
company.
    Most recent 12 months net excludes preferred dividends of
6.4 mln dlrs compared with 8.6 mln dlrs last year.


.I 11727
.C
earn
.W
BOGART CRAFTS CORP <VOGT> YEAR LOSS.
    NEW YORK, March 18 - Yr ends Nov 29, 1986
    Shr loss 61 cts vs loss 1.19 dlrs
    Net loss 1,017,000 vs loss 1,987,000
    Revs 10.4 mln vs 10.3 mln
    NOTE: Prior yr ended Nov. 30


.I 11728
.C
acq
.W
GENCORP <GY> GROUP TO SEEK ANTI-GREENMAIL VOTE.
    New York, March 18 - GAMCO Investors Inc, an affiliate of
Gabelli and Co, plans to propose an anti-greenmail provision at
the GenCorp Inc annual meeting March 31, according to GAMCO
Chairman Mario Gabelli.
    Greenmail often involves the repurchase of shares at a
premium by a company from an unwanted investor. GenCorp today
received a surprise tender offer from a group that holds 9.8
pct of its stock.
    Gabelli also said GAMCO has sent a 13-D filing to the
Securities and Exchange Commission on the 6.5 pct of GenCorp
stock held by GAMCO and its affiliates.
    The stock amounts to 1,462,000 shares and most of it was
reported in an earlier 13-G filing. A 13-G is filed by passive
investors to show holdings of more than five pct.
    Earlier today, General Partners, owned by Wagner and Brown
and AFG Industries Inc, launched a 100 dlr per share tender
offer for GenCorp. Analysts said the offer was between 10 and
20 dlrs per share too low.
    GenCorp has made no comment on the offer.
    Gabelli said he also proposes that management consider
spinning off all assets, other than the GenCorp broadcast
properties, to shareholders. The licenses of the broadcast
properties have long been entangled in a series of challenges.
    "One thing is going to be clear and that is I'm going to
the meeting and putting up "no greenmail," Gabelli said.
    Gabelli said he fears that greenmail might be a motivation
in the offer.
    The annual meeting is to be held in Akron, Ohio.



.I 11729
.C
earn
.W
LAENDERBANK EXPECTS MODEST PROFIT RISE IN '87.
    VIENNA, March 18 - Oesterreichische Laenderbank AG
[OLBV.VI] expects to maintain its dividend and to record a
moderate rise in profits this year after the 181.5 mln
schilling net profit made in 1986, General Director Gerhard
Wagner said.
    Wagner told a news conference that last year's 34.3 pct
rise in net profit from 135.1 mln in 1985 was largely due to
greater domestic business and wider margins on schilling
interest rates.
    The bank, Austria's third largest, raised its 1986 dividend
to 12 pct of its 1.5 billion schilling nominal share capital
from 10 pct on capital of 1.35 billion in 1985.
    Announcing the 1986 results, Wagner said: "We will endeavour
to maintain the higher dividend in 1987."
    Laenderbank's balance sheet total rose five pct to 197.7
billion schillings against 8.1 pct growth in 1985. Foreign
currency business last year accounted for some 37 pct of
balance sheet total compared with about 41 pct in 1985.
    Wagner blamed the realtive shrinkage of foreign business
chiefly on the dollar's fall against the schilling, which is
effectively pegged to the mark. The dollar's weakness had wiped
some 8.9 billion schillings off the balance sheet total.
    Wagner declined to give an exact figure for profits from
the bank's London branch, which opened in April 1985, but said
that it came close to one mln stg.
    On schilling lending, profit on interest had risen 18 pct
to 2.19 billion schillings while commission earnings climbed
8.7 pct to 738.9 mln.
    According to the 1987 federal budget, the state is due to
lower its stake 60 pct in Laenderbank, probably to 51 pct.
Wagner said the exact timing of the move depended on the state.


.I 11730
.C
acq
.W
NATIONAL DATA <NDAC> IN PACT WITH SIGNATURE.
    DALLAS, March 18 - National Data Communications Inc said it
is no longer obligated to issue its majority shareholder
<Signature Capital Corp> 20 mln common shares under a previous
agreement.
    National said it entered into a new agreement with
Signature, which would have owned about 80 pct of National's
common under the prior pact.
    Under the new pact, National said it granted Signature a
five-year option to acquire two mln shares of its common for an
option price equal to its current market value. National has
about 15.3 mln shares outstanding.


.I 11731
.C
acq
.W
PILGRIM VENTURE IN MERGER AGREEMENT.
    FORT LAUDERDALE, Fla., March 18 - <Pilgrim Venture Corp>
said it signed a letter of intent to merge with <Marketing
Technologies Group Inc>, Rockville Center, N.Y.
    Under terms of the agreement, Pilgrim, a publicly held
corporation, said it will issue two mln shares of authorized
but unissued restricted common stock to Marketing Technologies
shareholders. The company said it expects to complete the
merger by June 17.
    Marketing Technologies is developing a computer-based
advertising system geared toward large advertisers, the company
said.


.I 11732
.C
acq
.W
GENCORP <GY> TO STUDY GENERAL PARTNER BID.
    AKRON, Ohio, March 18 - GenCorp Inc chairman William
Reynolds said the company's board and its financial and legal
advisors will study the unsolicited tender offer from <General
Partners>.
    "Right now, our advice to all our shareholders is to wait
until the board advises them of its position ... which will
happen on or before March 31," Reynolds said.
    Earlier today, General Partners, controlled by Wagner and
Brown and AFG Industries Inc, said it started a tender offer
for all of Gencorp's shares and stock purchase rights for 100
dlrs a share.
    General Partners said the offer, which is due to expire
April 14, is conditioned on receipt of sufficient financing and
other conditions.
    "We are asking our shareholders to postpone any decision on
whether to accept or reject the offer until the board finishes
its evaluation," Reynolds said in a statement.
    "The Wagner and Brown-AFG offer does not expire until April
14, so shareholders have time to make their decision," he said.


.I 11738
.C
earn
.W
RESTAURANT MANAGEMENT SERVICES <RESM> IN PAYOUT.
    MACON, Ga., March 18 -
    Qtly div 1-3/4 cts vs 1-3/4 cts prior
    Pay April 23
    Record April nine
    NOTE: Full name Restaurant Management Services Inc


.I 11740
.C
earn
.W
CITIZENS FIRST BANCORP INC <CFB>RAISES DIVIDEND.
    GLEN ROCK, N.J., March 18 - 
    Qtly div 15 cts vs 12.5 cts prior
    Pay May 1
    Record April 17
    Note: Prior dividend is adjusted for recent six-for-five
stock split.


.I 11741
.C
jet
.W
TEXACO INC <TX> 84.1 MLN DLR DEFENSE CONTRACT.
    WASHINGTON, March 18 - Texaco Refining and Marketing Inc is
being awarded a 84.1 mln dlr Defense Logistics Agency contract
for jet fuel, the Defense Department said.
    It said work on the contract, which was awarded as part of
a multi-contract procurement program, is expected to be
completed by March 31, 1988.


.I 11743
.C
earn
.W
ALLISON'S PLACE INC <ALLS> 4TH QTR NET.
    LOS ANGELES, March 18 -
    Shr seven cts vs 20 cts
    Net 184,000 vs 387,000
    Revs 9,100,000 vs 6,700,000
    Year
    Shr 13 cts vs 33 cts
    Net 315,000 vs 627,000
    Revs 32.4 mln vs 24.6 mln


.I 11744
.C
earn
.W
******CONAGRA INC 3RD QTR SHR 36 CTS VS 31 CTS.
Blah blah blah.

.I 11749
.C
gas
.W
PRI <PRI> TO BUY SHELL <RD> HAWAII GAS STATIONS.
    HONOLULU, March 18 - Pacific Resources Inc said it signed a
definitive agreement with Royal Dutch/Shell Group unit Shell
Oil Co to buy Shell's marketing, terminaling and distribution
assets in Hawaii for 32 mln dlrs.
    The purchase would include Shell's interest in 39 retail
gasoline stations and four petroleum product terminals, PRI
said. The company said it expects the transaction to be
completed by September 1, 1987.
    The pact includes provisions allowing the continued use of
the Shell trademark, credit cards and the sale of Shell brand
products by the gasoline stations, PRI said.
    PRI said all Shell-brand products sold under this agreement
will be manufactured to Shell specifications.


.I 11750
.C
earn
.W
READING CO <RDGC> 4TH QTR OPER NET.
    PHILADELPHIA, March 18 -
    Oper shr 40 cts vs 30 cts
    Oper net 1,364,000 vs 1,025,000
    Revs 14.7 mln vs 11.0 mln
    Avg shrs 3,372,970 vs 3,425,400
    Year
    Oper shr 86 cts vs 32 cts
    Oper net 2,925,000 vs 1,109,000
    Revs 43.0 mln vs 35.7 mln
    Avg shrs 3,383,651 vs 3,418,594
    NOTE: Year-ago periods exclude extraordinary gain of 1.1
mln dlrs or 31 cts/shr.
    Includes gains of 988,000 dlrs vs one mln dlrs in qtr and
2.2 mln dlrs vs 1.1 mln dlrs in year from tax loss
carryforwards.


.I 11753
.C
earn
.W
CONAGRA INC <CAG> 3RD QTR FEB 22 NET.
    OMAHA, Neb., March 18 - 
    Shr primary 36 cts vs 31 cts
    Shr diluted 36 cts vs 31 cts
    Net 25.1 mln vs 21.7 mln
    Revs 1.53 billion vs 1.39 billion
    Avg shrs primary 68.8 mln vs 68.9 mln
    Avg shrs diluted 70.5 mln vs 71.0 mln
    Nine mths
    Shr primary 1.32 dlrs vs 1.13 dlrs
    Shr diluted 1.30 dlrs vs 1.11 dlrs
    Net 90.8 mln vs 77.6 mln
    Nine mths
    Revs 5.18 billion vs 4.58 billion
    Avg shrs primary 68.9 mln vs 68.8 mln
    Avg shrs diluted 70.6 mln vs 71.0 mln
    Note: Net is before preferred dividend payments.
    Current nine mths net includes after-tax provision of five
mln dlrs for consolidation of food plants.
    Shr and avg shrs data reflect two-for-one split in December
1986. Results for year-ago nine mths and current first half
restated to reflect acquisition of E.J. Miller Enterprises for
1,040,000 shares in January 1987.


.I 11754
.C
acq
.W
CANADIAN PACIFIC <CP> SEEKS BUYER FOR UNIT.
     MONTREAL, March 18 - Canadian Pacific Ltd said it retained
Wood Gundy Inc to seek a buyer for Maple Leaf Mills Ltd of
Toronto.
    The company said Maple Leaf had 1986 sales of 819 mln dlrs
and an after tax profit of 16.3 mln dlrs. It is a diversified
agriproducts company which produces and sells industrial and
consumer flour, flour-based products and baked goods.
    It also operates a fully integrated poultry business and a
rendering businesses, markets livestock and poultry feed and
distributes grain through a network of country and terminal
elevators.


.I 11757
.C
acq
.W
AIR CANADA COURIER BUY SHARPLY ALTERS INDUSTRY.
    By Larry Welsh, Reuters
    TORONTO, March 18 - Air Canada's 54 mln U.S. dlr
acquisition of Gelco Corp's <GEC> Canadian unit has
dramatically altered Canada's fast growing courier industry,
largely dominated by U.S. companies until this year, company
officials and analysts said.
    State-owned Air Canada takes over the country's second
largest overnight courier business just two months after
another Canadian company, <Onex Capital Corp Ltd>, approved the
acquisition of number one ranked Purolator Courier Ltd from New
Jersey-based Purolator Courier Corp <PCC>.
    But analysts said the two acquisitions were prompted by
financial restructuring undertaken by the U.S. parent companies
and likely don't represent an industry trend toward buying out
foreign owned courier operations.
    "It's a case of whether you can buy from the right people at
the right time," McLeod Young Weir Ltd transportation analyst
Tony Hine commented.
    The two acquisitions fit with a larger move by U.S.
companies embroiled in a take-over or restructuring to sell-off
their Canadian units to generate ready cash, said Nesbitt
Thomson Deacon Inc analyst Harold Wolkin.
    "There is a very good correlation between the U.S. parent
selling Canadian subsidiaries and the U.S. parent either being
under siege or taking someone else over," he said.
    Gelco Corp, of Minnesota, decided to sell Gelco Express Ltd
as part of its previously announced program to sell off four
operating units to buy back shares and pay down debt, Gelco
Express marketing vice president James O'Neil told Reuters.
    The sale is the first under Gelco's divestiture program,
and proceeds will be used to help pay down 350 mln U.S. dlrs of
debt by year-end, the company said.
    While company officials declined to disclose earnings and
revenue figures, O'Neil said Gelco Express holds a dominant
position in the industry, handling more than 50,000 packages a
day and generating revenues of more than 100 mln Canadian dlrs
a year.
    The earlier move by Purolator to sell its Canadian unit
formed an important part of a company restructuring program,
adopted after another Canadian Company, <Unicorp Canada Corp>,
acquired a 12.6 pct stake in Purolator and said it would
consider acquiring the whole company.
    Last month, Purolator agreed to be acquired by a company
formed by E.F. Hutton LBO Inc and certain managers of
Purolator's U.S. courier business.
    For Air Canada, its acquisition of Gelco's Canadian courier
business represents an "excellent financial investment" in a
market it sees growing by 25 to 30 pct annually, spokesman
Esther Szynkarsky said.
    The airline also announced it acquired a 65 pct stake in
EMS Corp, of Calgary, an in-city messenger service.
    It did not disclose financial terms, but Szynkarsky said
the two acquisitions totalled about 90 mln Canadian dlrs, and
the two business have combined yearly revenues of 170 mln dlrs.
    She said the acquisition fit with Air Canada's strategy of
seeking attractive investments that compliment its main airline
business.
    Gelco will continue to operate with current management,
independently of Air Canada, although Air Canada already
operates its own air cargo business that includes a small
door-to-door courier operation.
    "They're well run, they're a good investment, they're doing
well in a growing market, and that's the way we want to keep
it," Szynkarsky said.
    Analyst Hine said the Gelco and Purolator Canadian units
will likely retain operating links with their U.S. delivery
network, generating traffic for the former parent companies
without them having to tie up capital in Canada.
    "The nature of the business is that incremental traffic is
incremental revenue," Hine said.
    "It's sort of a sausage maker business where you put in
place the sausage grinder, and the more sausage you can stuff
through, the more money you make," he added.


.I 11759
.C
copper
.W
COPPER INDUSTRY ASKS LME FOR STRATEGY STATEMENT.
    LONDON, March 18 - Representatives of the International
Wrought Copper Council (IWCC) and major copper producers have
told the London Metal Exchange (LME) a clear statement of its
forward strategy would lead to a better understanding between
industry and the LME.
    In a press release the IWCC said that at the latest meeting
between the copper industry and the LME to discuss the new
clearing house system, industry expressed grave concern about
latest proposals made by at least one LME member for a cash
cleared market to replace the planned clearing system which
will retain the prompt date settlement basis.
    Copper industry delegates told the LME a decision to change
(the planned clearing system) would indicate a fundamental
change in the function of the LME and in its service to the
industry, the release said.
    By deterring industry use of the Exchange for hedging and
physical needs it would remove many of the unique advantages
currently offered by the LME and make it indistinguishable from
non-trade orientated markets such as Comex.
    The LME had to decide whether dealer convenience should
take a higher priority over customer satisfaction, industry
delegates said.
    The IWCC release also said the LME had confirmed that no
change would be made to the clearing system planned to start on
May 29. But it had indicated that consideration would be given
in due course to the cash clearing proposal, made by
Amalgamated Metal Trading at a LME members meeting last week.
    A copper industry spokesman suggested that some assurance
of permanence in the new clearing system would remove industry
fears of uncertainty resulting from an endless process of
review and change, the press release said.


.I 11761
.C
earn
.W
NORTH-WEST TELECOM <NOWT> 4TH QTR OPER NET.
    LA CROSSE, WIS., March 18 -
    Oper shr 64 cts vs 52 cts
    Oper net 872,272 vs 706,836
    Revs 9,271,541 vs 7,744,466
    Year
    Oper shr 2.03 dlrs vs 1.96 dlrs
    Oper net 2,782,7801 vs 2,684,089
    Revs 31.2 mln vs 29.1 mln
    NOTE: Full name is North-West Telecommunications Inc


.I 11762
.C
acq
.W
GROUP RECONSIDERS COMPUTER MEMORIES <CMIN> BID.
    WASHINGTON, March 18 - A shareholder group led by Far
Hills, N.J., investor Natalie Koether said it is reconsidering
its plan to seek control of Computer Memories Inc and now plans
to sell its entire stake in the company.
    In a filing with the Securities and Exchange Commission,
the group, which includes Sun Equities Corp, said it sold a net
365,375 Computer Memories common shares between March 5 and 17
at prices ranging from 3-3/4 to four dlrs a share, lowering its
stake to 687,000 shares, or 6.2 pct of the total outstanding.
The group said it reconsidered its takeover plans after the
company announced it agreed to a stock swap.
    On March 12, the Chatsworth, Calif., computer disk drive
concern said it agreed in a letter of intent to exchange 80 pct
of its stock, all of which would be newly issued, for the
assets of privately held Hemdale Film Corp, with Hemdale as the
surviving entity.
    "In light of these disclosures, Sun found it necessary to
re-evaluate the feasibility of seeking control of the company
and has sold a portion of its shares and currently intends to
sell the balance thereof from time to time," the group said.
    The group, which disclosed plans on Dec 29 to seek control
of the company, reserved the right to change its mind again.


.I 11763
.C
earn
.W
AULT INC <AULT> 3RD QTR MARCH ONE NET.
    MINNEAPOLIS, MINN., March 18 - 
    Shr profit eight cts vs loss 16 cts
    Net profit 153,000 vs loss 310,000
    Sales 3,937,000 vs 2,364,000
    Nine Mths
    Shr profit five cts vs loss 53 cts
    Net profit 97,000 vs loss 1,042,000
    Sales 10.2 mln vs 7,564,000


.I 11765
.C
earn
.W
AMERICUS TRUST <ATU> AND <ATP> INITIAL DIVIDEND.
    NEW YORK, March 18 - Americus Trust for American Telephone
and Telegraph Shares Series Two said it will distribute an
initial dividend of 28.75 cts on May 12 to shareholders of
record March 31.


.I 11766
.C
acq
.W
XTRA <XTR> TO BUY FRUEHAUF <FTR> UNIT.
    BOSTON, March 18 - XTRA Corp said it agreed to acquire all
the stock of RentCo Trailer Corp, a wholly owned subsidiary of
Fruehauf Corp for about 70 mln dlrs.
    RentCo had revenues of about 70 mln dlrs.
    The transaction is expected to be completed in April and is
subject to regulatory approval.


.I 11768
.C
acq
.W
WICKES COMPANIES <WIX> COMPLETES SALE OF UNIT.
    SANTA MONICA, Calif., March 18 - Wickes Companies Inc said
it completed the sale of its Sequoia Supply division to a new
company created by the management of that division.
    Paul Hylbert, president of Sequoia, has been named
president and chief executive officer of the new company.


.I 11769
.C
acq
.W
LDBRINKMAN <LDBC> CHIEF CUTS CENERGY <CRG> STAKE.
    WASHINGTON, March 18 - LDBrinkman Corp Chairman L.D.
Brinkman and members of his family said they cut their stake in
Cenergy Corp to 3,647 shares, or 0.4 pct of the total
outstanding, from 912,147 shares, or 9.4 pct.
    In a filing with the Securities and Exchange Commission,
the group said it sold 302,833 Cenergy common shares to Snyder
Oil Partners L.P. <SOI> on March 14 for 2,725,500 dlrs and gave
Snyder another 605,667 shares, in exchange for 524,135 units of
limited partnership interests in Snyder.


.I 11772
.C
earn
.W
INTER-TEL INC <INTLA> 1ST QTR FEB 28 NET.
    CHANDLER, Ariz., March 18 -
    Shr three cts vs one ct
    Net 235,000 vs 66,000
    Revs 10 mln vs 8,202,000
    Avg shrs 7,972,000 vs 8,545,000


.I 11773
.C
earn
.W
TEXSTYRENE CORP <FOAM> 11 MTHS DEC 31 LOSS.
    FORT WORTH, Texas, March 18 -
    Shr loss 83 cts
    Net loss 2,115,000
    Revs 139.6 mln
    Avg shrs 3.6 mln
    NOTE: Company went public February 1986.


.I 11774
.C
earn
.W
FLUOROCARBON CORP <FCBN> QTLY DIVIDEND.
    LAGUNA NIGUEL, Calif., March 18 -
    Shr seven cts vs seven cts prior qtr
    Pay April 30
    Record April 15



.I 11775
.C
earn
.W
METRO MOBILE <MMCT> DECLARES STCOK DIVIDEND.
    NEW YORK, March 18 - Metro Mobile CTS Inc said it declared
a 10 pct stock dividend.
    The dividend will be distributed on April 13 to holders of
record March 30.
   


.I 11776
.C
earn
.W
LAURENTIAN GROUP SEES HIGHER SHARE NET.
    MONTREAL, March 18 - <Laurentian Group Corp> said it
expects 1987 earnings per share will show about the same
proportionate increase as in 1986.
    Last year, the company had 25.7 mln dlrs operating profit,
or 76 cts per share, up from 11.1 mln dlrs, or 59 cts per
share, in 1985. Shares outstanding increased to 39 mln from
27.8 mln.
    The American holding company, Laurentian Capital Corp, will
show a substantial improvement this year, chairman Claude
Castonguay said before the annual meeting.
    Laurentian Capital Corp, which recently acquired two small
U.S. life insurance companies, had 1986 profit of 1.1 mln U.S.
dlrs, or eight cts per share, compared to seven mln U.S. dlrs,
or 68 cts per share.
    Castonguay said Laurentian Group Corp, the parent firm,
plans to fill out its national financial services distribution
system and make further acquisitions if the right opportunity
occurs.
    The company also may expand this year in continental
Europe, in conjunction with La Victoire, a French insurance
company, he said.


.I 11777
.C
earn
.W
METRO MOBILE <MMCT> DECLARES STOCK DIVIDEND.
    NEW YORK, March 18 - Metro Mobile CTS Inc said it declared
a 10 pct stock dividend.
    The dividend will be distributed on April 13 to holders of
record March 30.
   


.I 11778
.C
earn
.W
<TRIDEL ENTERPRISES INC> YEAR NET.
    TORONTO, March 18 -
    Shr 1.05 dlrs vs 51 cts
    Net 8,500,000 vs 4,100,000
    Revs 183.2 mln vs 136.6 mln


.I 11779
.C
trade
.W
PERU SHORT-TERM TRADE CREDIT UP TO 430 MLN DLRS.
    LIMA, March 18 - Peru's short-term foreign trade credit
lines, regarded as vital to ensure smooth foreign commercial
transactions, have more than doubled to 430 mln dollars under
the 20-month government of president Alan Garcia.
    Central bank general manager Hector Neyra told reporters
many of the credits were 90-day.
    Trade credits were 210 mln dlrs when Garcia took office in
1985 announcing a tough stance limiting foreign debt repayments
to 10 pct of export earnings.
    Neyra told Reuters Peru was current on interest payments on
short-term debt, including trade credit lines and on about 750
mln dlrs in so-called  "working capital" credits.
    Trade credit lines were 880 mln dlrs in 1982, but fell in
1984 when Peru stopped some payments to private foreign banks.


.I 11782
.C
acq
.W
U.K. TO SELL OFF REMAINING 31.7 PCT STAKE IN BP.
    LONDON, March 18 - The British Conservative government said
it would sell off its remaining 31.7 pct shareholding in
British Petroleum Co Plc <BP.L> during the next financial year
which starts on April 1.
    Treasury Financial Secretary Norman Lamont made the
announcement to Parliament. He said, "The government's policy is
to sell its minority holdings in companies as and when
circumstances permit.
    "As part of this policy I am now able to announce that,
subject to market conditions, the government will sell its
remaining shares in BP during the 1987/88 financial year."
    The last sale of British government shares in BP was in
September 1983. The government currently holds some 578.5 mln
ordinary shares in the company.
    Lamont said the Treasury would appoint financial advisers
for the sale. Merchant banks and stockbrokers interested in
being considered for this would be interviewed in early April.
    In September 1983, the U.K. Government sold 150 mln shares
in an underwritten offer for sale by tender. The striking price
then was 435 pence - 7.5 pct above the minimum tender price, a
Treasury spokesman said.
    He said the sale of BP shares would not cut across the
government's plans to privatise Rolls-Royce, in either April or
May, or the sale of BAA Plc, the British airports authority
which is slated for privatisation in either June or July.


.I 11784
.C
gas;crude;
.W
******EIA SAYS DISTILLATES OFF 7.6 MLN BBLS, GASOLINE OFF 3.4 MLN, CRUDE OFF 4.4 MLN.
Blah blah blah.

.I 11785
.C
gold
.W
EAST RAND MINES EXPECT HIGHER GOLD PRODUCTION.
   JOHANNESBURG, March 18 - East Rand Proprietary Mines Ltd
said that barring any major disruption in production, it
expects 1987 gold output to top 10 tonnes after dropping to
9.223 tonnes last year from 10.251 in 1985.
    Chairman Clive Knobbs said in the annual report the mine
was expected to mill a higher tonnage while capital expenditure
during 1987 will be around 118.5 mln rand.
   The decline in gold production last year was due to a four
pct drop in tonnage milled and a seven pct decline in grade.


.I 11786
.C
acq
.W
SNYDER <SOI> BUYS STAKE IN CENERGY.
    FORT WORTH, Texas, March 18 - Snyder Oil Partners LP said
it acquired 1.2 mln shares, or 12 pct, of Cenergy Corp.
    It said it is continuing to review its investment  and has
made no determination of its future course of action.


.I 11787
.C
acq
.W
FAR WEST FINANCIAL <FWF> TO BUY PROGRESSIVE.
    ALHAMBRA, Calif., March 18 - Progressive Savings and Loan
Association <PRSL> said it has agreed in principle to be
purchased by Far West Financial Corp's Far West Savings and
Loan Association.
    The acquisition would be a cash merger, with Progressive
shareholders receiving up to three dlrs per share, the company
said.
    Progressive Savings has assets of about 500 mln dlrs and
operates ten offices in Los Angeles and Orange counties.
    The agreement is subject to federal and shareholder
approval.


.I 11788
.C
earn
.W
COMMUNITY SAVINGS BANK <CSBN> QTLY DIVIDEND.
    HOLYOKE, Mass., March 18 - 
    Qtly div six cts vs six cts prior
    Pay April 17
    Record April 3.


.I 11789
.C
crude;nat-gas;
.W
DIVISION SEEN ON HOW TO HELP U.S. OIL INDUSTRY.
    By TED d'AFFLISIO, Reuters
    NEW YORK, March 18 - The U.S. Congress and the oil industry
are deeply divided on ways the government should assist the
industry, hurt by the sharp fall in oil prices, and the
subsequent growth in oil imports, industry analysts said.
    "The industry is deeply divided between those who support an
oil tariff and those who believe tax incentives are better,"
said Daniel Yergin, director of Cambridge Energy Research
Associates, which recently completed a survey of the U.S.
Congress on energy issues.
    Yergin said he saw mounting support within Congress for tax
incentives rather than an oil tariff or import fee.
    Today U.S. Energy Secretary John Herington said he will
propose tax incentives to increase edomestic oil and natural
gas exploration and production to the Reagan Administration for
consideration. White House spokesman Marlin Fitzwater said the
proposal would be reviewed.
    Herrington said, "I would like to shoot for one mln barrels
a day (addition) to U.S. production." U.S. oil output was off to
8.4 mln bpd in the week of March 13, down six pct from last
year, the American Petroleum Institute said.
    Oil industry analysts have forecast oil prices to average
about 18 dlrs a barrel for the year and many believe that a
move above that level will be unlikey for the near term.
    Paul Mlotok, oil analyst for Salomon Brothers Inc said that
"even with the rise in prices for the last week or two we've
only altered our average price scenerio to about 17.50 dlrs for
the year."
    Analysts said that at that price renewed drilling and
exploration to reverse the decline in U.S. crude oil output
will not take place as the companies are waiting for stable
prices over 20 dlrs to renew exploration.
    John Lichtblau, president of the Petroleum Industry
Research Foundation Inc in New york in recent testimony to
Congress said "The continuing decline in U.S. oil production is
virtually inevitable under any realistic price scenario. But
the future rate of decline is very much a function of world oil
prices and U.S. government policy."
    Lichtbalu said that tax breaks could be used to raise oil
production but would only work over time.
    "Lowering the producing industry's tax burden would probably
be a slower stimulant (to output) than a price increase but
would not raise energy costs." Lichtblau said.
    But the small independent oil companies who do much of the
drilling in the U.S. are looking for the more immediate relief
which could be brought on by an oil import fee.
    Ronald Tappmeyer, president of the International
Association of Drilling Contractors, said, "The members of our
trade asssociation are convinced that only a variable oil
import fee that sets a minimum price trigger can protect our
nation." The association represents some 1,300 drilling and oil
service companies.
    The CERA survey of Congress shows that the oil import fee
will face a stiff uphill battle.
    Yergin said that the poll which was conducted in January by
a former Congressman, Orval Hansen, showed support for the oil
import fee from 22 pct of the Congressmen surveyed largely as a
means of protecting the domestic petroleum industry.
     At the same time 48 pct of the Congressmen surveyed
opposed the fee with the respondents saying the tariff would
hurt consumers and some regional interests.
    But 80 pct of the sample said support for a fee could grow
if production continued to fall and imports to rise.
    Yergin said that imports above 50 pct of U.S. requirements
"is a critical, symbolic level. If they (imports) move above
that level, a fee may not be legislated but there will
certainly be pressure for some form of action."
     But Lichtblau, in a telephone interview, said, "a 50 pct
rate of import dependency is not likely to happen before 1990.
    In 1986 U.S. oil imports rose to 33 pct of u.s. energy
requirements and shopuld be about 34 pct in 1987, he added.


.I 11790
.C
earn
.W
TEXSTYRENE <FOAM> SUSPENDS PREFERRED PAYMENTS.
    FORT WORTH, Texas, March 18 - Texstyrene Corp said it has
suspended quarterly cash dividend payments on its 9.5 pct
convertible exchangeable preferred stock.
    The suspension effects the March 15 payment, and it said it
does not expect to pay preferred dividends in the forseeable
future.
    It said the payments were suspended because of certain
covenants contained in its loan agreements. A spokesman said
the company's loss of 2,115,000 dlrs for the first 11 months as
a public company did not meet an income condition on the loans,
leading to the suspension.
    The maker of foam cups, food containers and other products
said it had 733,332 outstanding preferred shares, which had
been privately placed.
    The dividend payments on the shares amounted to 1,045,000
dlrs per year, the spokesman said.


.I 11793
.C
earn
.W
SPECTRAN CORP <SPTR> 4TH QTR.
    STURBRIDGE, Mass, March 18 -
    Shr loss 2.22 dlrs vs profit 16 cts
    Net loss 10.2 mln vs profit 760,443
    Revs 1.1 mln vs 3.7 mln
    Year
    Shr loss 3.68 dlrs vs profit 64 cts
    Net loss 16.9 mln vs profit 2.7 mln
    Revs 3.6 mln vs 15.2 mln
    NOTE:1986 4th qtr includes 6.7 mln dlr restructuring charge
and writedowns of 280,000 dlrs. year includes writedown of 3.6
mln dlrs.


.I 11794
.C
earn
.W
<VANGUARD INDEX TRUST> QUARTERLY DIVIDEND.
    VALLEY FORGE, Pa., March 18 - 
    Qtly div 18 cts vs 18 cts prior
    Pay April 30
    Record March 26.


.I 11795
.C
wheat;grain;
.W
SHULTZ SAYS U.S. PRODUCTS MUST BE COMPETITIVE.
    WASHINGTON, March 18 - Asked what the U.S. State
Department's policy is on offering subsidized wheat to Moscow,
Secretary of State George Shultz told a group of farm leaders
that U.S. products must be competitive in the world market.
    "If we are going to sell our products, whatever they may
be, wheat or anything else, then we have to meet the market,"
Shultz told the board of directors for the National Association
of Wheat Growers.
    "We have to be competitive. It's ridiculous to say that
somebody is going to buy your product if they can get the same
thing at a lower price somewhere else. They just aren't," he
said.
    "That is our approach in the negotiations with the Soviets,
and it must be our approach as we look at the American farm
program and try to figure out what we should do to make it
better," Shultz told the Wheat Growers.
    Schultz said that while he does not favor a situation that
would allow the Soviet housewife to buy food cheaper than the
American housewife, he realizes the importance of American
agricultural products being competitively priced.
    Speculation has been in the market for some time that the
United States is considering offering wheat to the Soviet Union
at subsidized prices.
    Soviet officials have said they would buy U.S. wheat if it
were competitively priced. Agriculture Department officials
have declined to take any official position on the issue.


.I 11797
.C
acq
.W
CANADIAN PACIFIC SEEKS BUYER FOR MAPLE LEAF UNIT.
    MONTREAL, March 18 - Canadian Pacific Ltd said it retained
Wood Gundy Inc to seek a buyer for Maple Leaf Mills Ltd of
Toronto.
    The company said Maple Leaf had 1986 sales of 819 mln
Canadian dlrs and an after tax profit of 16.3 mln Canadian
dlrs. It is a diversified agriproducts company which produces
and sells industrial and consumer flour, flour-based products
and baked goods.
    It also operates a fully integrated poultry business and a
rendering business, markets livestock and poultry feed and
distributes grain through a network of country and terminal
elevators.


.I 11799
.C
acq
.W
GREYHOUND CORP <G> COMPLETES BUS LINE SALE.
    PHOENIX, Ariz., March 18 - Greyhound corp said it completed
the sale of its Greyhound Lines unit to Dallas-based GLI
Holdings Inc for 350 mln dlrs in cash, securities, royalties
and other considerations.
    Greyhound said GLI is authorized to continue using the
familiar running dog logo on a red, white and blue shield,
while Greyhound Corp will continue to use the running dog alone
as its symbol.


.I 11800
.C
acq
.W
INTERCARE <CARE> DROPS OFFERING, BUYOUT PLANS.
    CULVER CITY, Calif., March 18 - InterCare Inc said it 
terminated plans to acquire Universal Care, a California health
mainenance organization, following First Jersey Securities'
decision to withdraw as underwriter for InterCare's proposed
public debt and equity securities offering.
    The acquisition was contingent on its ability to obtain
financing to fund the 1.9 mln dlr cash portion of the purchase
price, InterCare said.
    It also said the offering was aimed at raising 7.5 mln dlrs
for working capital and 1.7 mln to repay debt incurred in
connection with its recent acquisition of U.S. Medical
Enterprises Inc.
    The company further stated that it has a 1.7 mln dlr
working capital deficit and it will therefore reduce operating
expenses by decreasing operating hours, workforce reductions
and the sale of certain assets.


.I 11801
.C
acq
.W
PROVIDENCE ENERGY <PVY> FINALIZES ACQUISITION.
    PROVIDENCE, R.I., March 18 - Providence Energy Corp said it
completed the purchase of North Attleboro Gas co.
    Terms were not disclosed.
    North Attleboro serves 2,273 residential customers, 288
commercial customers, and 40 industrial customers.


.I 11803
.C
oilseed;grain;corn;soybean;sunseed;sorghum;
.W
ARGENTINE MAIZE, SOYBEAN FORECASTS FALL.
    By Manuel Villanueva
    BUENOS AIRES, March 18 - Argentine grain growers reduced
their estimates for maize and soybean production in the current
harvest in the week to yesterday, trade sources said.
    Soybean production for 1986/87 is now estimated to reach
between 7.7 and eight mln tonnes, versus 7.8 to 8.2 mln tonnes
estimated a week ago and eight to 8.4 mln tonnes estimated in
mid-February.
    But even the lowest of those estimates would be 8.5 to 12.7
pct greater than last year's total of 7.1 mln tonnes, according
to official figures, and would be a new record.
    The total area planted with soybeans for this harvest was a
record 3.7 to 3.8 mln hectares and increased 10.8 to 13.8 pct
compared to the 3.3 mln hectares planted last year.
    The change in yield estimates is due to very high
temperatures and inadequate rainfall since early in the year in
the soybean-producing belt of southern Cordoba and Santa Fe and
northern Buenos Aires province.
    The heat and lack of rain combined to leave many soybean
pods empty, especially in Cordoba.
    Intense rains in recent weeks did not affect crops, since
rainfall was slight in most main soybean-producing areas.
    Rains in the week to yesterday were isolated and weak in
Buenos Aires province, totalling between one and 10 mm. There
was no recorded rain in other grain-producing provinces.
    With clear skies and seasonable temperatures, fields were
able to dry in areas that had received heavy rains in recent
weeks, allowing growers to accelerate the pace of maize,
sunflower and sorghum harvesting.
    Crops were considered in generally good condition, though
it is still too early to judge whether the intense rains of
recent weeks caused any long-term damage.
    The maize harvest advanced to between 20 and 22 pct of the
total area planted, compared to 13 to 15 pct a week ago.
    Total area planted with maize for this harvest stood at
3.58 to 3.78 mln hectares, down two to seven pct from the 3.85
mln hectares planted in the previous harvest.
    Total production for the current maize harvest is expected
to reach between 9.9 and 10.1 mln tonnes, versus 10 to 10.2 mln
tonnes estimated a week ago. The new figure is 21.1 to 22.7 pct
lower than the 12.8 mln tonnes produced in the last harvest,
according to official figures.
    The sunflower harvest advanced to between 20 and 23 pct of
total planted area, versus 15 to 18 pct a week ago.
    Total area planted with sunflower for this harvest was two
to 2.2 mln hectares, or 29.9 to 36.3 pct lower than the record
3.14 mln hectares planted in the 1985/86 harvest.
    The current harvest's volume was again expected to be
between 2.3 and 2.6 mln tonnes, or 34.1 to 41.5 pct lower than
last harvest's record 4.1 mln tonnes.
    Yields varied widely from area to area, and growers feared
that heavy rains in recent weeks may have taken their toll on
crops and, consequently, on total production volume.
    The sorghum harvest reached between nine and 11 pct of
total planted area, compared to four to six pct a week ago.
    Total area planted with sorghum stood at between 1.2 and
1.3 mln hectares, or 10.3 to 15.2 pct lower than the 1.4 mln
hectares planted in the previous harvest.
    Estimates for total sorghum production this harvest
remained at 3.2 to 3.5 mln tonnes again this week, or 16.7 to
22 pct lower than last harvest's total volume of 4.1 to 4.2 mln
tonnes.


.I 11806
.C
gas;crude;
.W
RECENT U.S. OIL DEMAND UP 2.3 PCT FROM YEAR AGO.
    WASHINGTON, March 18 - U.S. oil demand as measured by
products supplied rose 2.3 pct in the four weeks ended March 13
to 16.49 mln barrels per day (bpd) from 16.11 mln in the same
period a year ago, the Energy Information Administration (EIA)
said.
    In its weekly petroleum status report, the Energy
Department agency said distillate demand was up 2.9 pct in the
period to 3.43 mln bpd from 3.33 mln a year earlier.
    Gasoline demand averaged 6.93 mln bpd, up 4.0 pct from 6.67
mln last year, while residual fuel demand was 1.31 mln bpd, off
7.9 pct from 1.42 mln, the EIA said.
    Domestic crude oil production was estimated at 8.36 mln
bpd, down 8.1 pct from 9.10 mln a year ago, and gross daily
crude imports (excluding those for the SPR) averaged 3.70 mln
bpd, up 24.8 pct from 2.96 mln, the EIA said.
    Refinery crude runs in the four weeks were 11.92 mln bpd,
up 1.0 pct from 11.80 mln a year earlier, it said.
    Year-to-date figures will not become available until March
26 when EIA's Petroleum Supply Monthly data for January 1987
becomes available, the agency said.


.I 11807
.C
earn
.W
MESA ROYALTY TRUST <MRT> MONTHLY PAYOUT.
    HOUSTON, March 18 - Mesa Royalty Trust <MRT> said unit
holders of record March 31 will receive a distribution
amounting to 55,192 dlrs or 2.96 cts per unit, payable April
30.


.I 11810
.C
grain;corn;
.W
TAIWAN BUYS 450,000 TONNES OF U.S. CORN.
    KANSAS CITY, March 18 - Taiwan overnight bought 450,000
tonnes of U.S. number two corn, 14.5 pct moisture, for Gulf and
West Coast shipment in 11 cargoes between May and October,
private export sources said.
    Gulf shipment ranged in prices from 75.17 to 78.45 dlrs per
tonne stowed and trimmed, FOB euqivalent, and West Coast
shipments ranged from 79.41 to 81.02 dlrs per tonne, stowed and
trimmed, FOB equivalent, they said.


.I 11811
.C
wheat;grain;
.W
RESULTS AWAITED ON EGYPT PL 480 WHEAT TENDER.
    KANSAS CITY, March 18 - Results were awaited on Egypt's
tender today for 200,000 tonnes of U.S. soft or white wheat for
April shipment under PL 480, private export sources said.


.I 11816
.C
wheat;grain;
.W
AMSTUTZ SEES MORE BULLISH WHEAT OUTLOOK IN 1987.
    WASHINGTON, MARCH 18 - U.S. Agriculture Undersecretary
Daniel Amstutz indicated the world wheat supply/demand
situation has become more bullish recently because of
developments in the world market and increased consumption.
    Speaking to a House Agriculture Appropriations
subcommittee, Amstutz cited three factors which have improved
the wheat outlook.
    He said world consumption of wheat is increasing by about
20 mln tonnes this year, primarily for feed use. There are also
reports from Australia, Canada and Argentina that plantings
have been reduced, he said. Furthermore, he cited reports of
greater than normal winterkill in the Soviet Union.
    "It seems reasonable to expect production and consumption
to be in far better balance than a year ago," Amstutz said.


.I 11818
.C
crude;nat-gas;
.W
ARGENTINE OIL, GAS PRODUCTION FALL IN FEBRUARY.
    BUENOS AIRES, March 18 - Argentina's total oil and gas
production fell 9.4 pct in February to 2.78 mln cubic metres
from January's total of 3.11 mln cubic metres, the state oil
company Yacimientos Petroliferos Fiscales (YPF) reported.
    A YPF statement blamed the drop on momentary problems owing
to the summer season but gave no further details.
    February's production figure fell slightly short of YPF's
target figure of 2.90 mln cubic metres.
    Oil production totalled 1.76 mln cubic metres last month
and natural gas production 1.02 mln cubic metres, down from
1.95 and 1.15 mln cubic metres in January, respectively.


.I 11819
.C
oilseed;soybean;
.W
U.S. SOYBEANS HAVE COMPETITIVE PROBLEM - AMSTUTZ.
    WASHINGTON, MARCH 18 - Soybeans produced in the United
States face a competitive price problem because of the loan
rate provisions of the 1985 farm bill, U.S. Undersecretary of
Agriculture Daniel Amstutz said.
    Amstutz told a House Agriculture Appropriations
subcommittee hearing that soybeans are caught in a "squeeze"
because the Farm Bill allowed steep cuts in grain loan rates
while limiting the soybean reduction.
    As a result, he said U.S.-produced soybeans "have a price
problem" in competing with other soybean producing countries.
    Amstutz called the situation a "dilemma" for the USDA, and
said "we have spent hours in ASCS (Agriculture Stabilization
and Conservation Service) looking at this."
    He did not say what may be done to rectify the situation.


.I 11820
.C
earn
.W
MITEK SYSTEMS EXPECTS LOSS IN CURRENT QUARTER.
    SAN DIEGO, Calif., March 18 - <Mitek Systems Inc> said it
expects to report a loss in the current quarter ending March
31, due primarily to the government buying cycle.
    The company did not quantify the size of the expected loss.
It said it expects sales and profits for fiscal 1987, however,
to exceed those of 1986. In 1986 Mitek reported sales of five
mln dlrs and a net profit of 14,000 dlrs.
    Mitek als said it has introduced a line of 15 page per
minute desk top laser printers.
    Limited shipments will begin next quarter, with full
production planned for the following quarter, it said.
   


.I 11821
.C
acq
.W
ECHLIN <ECH> BUYS STAKE IN CHAMPION PARTS<CREB>.
    OAK BROOK, Ill., March 18 - Champion Parts Rebuilders Inc
said Echlin Inc has bought a 20 pct stake in it by acquiring
600,000 newly issued shares and warrants to buy another 300,000
shares at 9.20 dlrs each, for a total investment of 5,400,000
dlrs.
    The newly issued shares raises Champion's outstanding
shares to 3,113,074.
    There are no voting restrictions on the new shares.
Champion's board will be expanded to include two or three
independent persons suggested by Echlin, it said.
    Champion will use the proceeds to pay down long-term debt,
it said.
    Echlin has agreed to limits on buying additional Champion
shares and its ability to seek control of Champion during the
next seven years, Champion said.
    Echlin will also receive protection against the decline in
price of Champion's stock for seven years. Echlin could receive
a one-time payment, at its option in cash or stock, ranging
from up to one dlrs a share in 1989 to four dlrs a share in
1992 to 1994, to the extent the market price of Champion shares
is less than nine dlrs a share at those times.


.I 11822
.C
wheat;grain;
.W
BRAZIL REJECTS ALL OFFERS AT WHEAT TENDER.
    RIO DE JANEIRO, MARCH 18 - Brazil rejected all offers at
tonight's wheat tender, a Brazilian Wheat Board spokesman said.
    He said no date had been set for the next tender.


.I 11825
.C
coffee
.W
IBC PRESIDENT TO ATTEND MANAGUA COFFEE MEETING.
    RIO DE JANEIRO, MARCH 18 - Brazilian Coffee Institute (IBC)
president Jorio Dauster said he will attend a meeting in
Managua this weekend.
    He told Reuters by telephone from Brasilia that the
meeting, involving Brazil, Colombia and Central American coffee
producers, will be strictly to review the coffee market
situation.
    "The meeting is set for Saturday but could also continue on
Sunday," he said.


.I 11826
.C
crude
.W
CANTERRA ENERGY TO DRILL WELL OFF NOVA SCOTIA.
    Calgary, Alberta, March 18 - <Canterra Energy Ltd> said it
will drill an exploratory well on the Scotian shelf, about 280
kilometers east-southeast of Halifax, Nova Scotia.
    Drilling will begin in late April 1987 in 61 meters of
water and will be drilled to a total depth of 3,500 meters,
Canterra said.
    Canterra will operate the well and has a 39 pct interest in
it. <Petro-Canada Inc> has 26 pct, <Trillium Exploration Corp>
has 20 pct and <Nova Scotia Resources (Ventures) Ltd> has 15
pct.


.I 11827
.C
acq
.W
FLEET <FLT> AIMS TO SPEED MERGER WITH NORSTAR.
    By Cal Mankowski, Reuters
    NEW YORK, March 18 - Fleet Financial Group hopes its
proposed merger with Norstar Bancorp <NOR>, ranked as the
largest U.S. banking merger, can be completed by the beginning
of 1988, according to an executive of Fleet.
    Robert Lougee, director of corporate communications for
Rhode Island-based Fleet, told Reuters the company is exploring
the possiblity of seeking a change in the national trigger date
for the state's reciprocal bank law to Jan 1, 1988 from July
one. The decision is up to the Rhode Island legislature.
    The merger plan was announced in a midday news release that
said the deal, worth about 1.3 billion dlrs, would be
consummated July one when Rhode Island barriers to interstate
banking outside of New England come down. "If we can consummate
the deal earlier that would be better for all concerned,"
Lougee said. He said to the best of his knowledge a change in
the Rhode Island law would not be a hardship for any other
banking institution in the state.
    He said Fleet is optimstic Connecticut law, which only
permits interstate banking mergers within New England, can be
amended. Fleet owns First Connecticut Bancorp.
    If the Connecticut law is not amended in time, Lougee said,
an option would be to spin off that unit with repurchase
provisions.
    The New England reciprocal banking laws have excluded New
York as a means of protecting regional banks from being gobbled
up by the money center giants.
    Wall Street analysts said the merger accord between Fleet
and Albany, N.Y.-based Norstar demonstrates the rapid pace of
interstate banking mergers since state legislatures begain
permitting regional mergers on a reciprocal basis. The U.S.
Supreme Court decided in mid-1985 to permit the mergers.
    Fleet and Norstar in a joint statement billed the proposed
merger as "a partnership of two companies." Both will continue
to operate existing headquarters after the merger.
    Norstar holders will receive 1.2 Fleet shares for each one
of theirs following Fleet's previously announced two-for-one
split. Fleet shares closed today at 59-1/2, up 1/8, giving the
deal an indicated value of 1.3 billion dlrs.
    That topped the proposed merger of Los Angeles-based
Security Pacific Corp <SPC> and Seattle's Rainier Bancorpartion
<RBAN>. The West Coast deal, announced about four weeks ago, is
worth an estimated 1.2 billion dlrs.
    Chemical New York Corp's <CHL> acquisition of Texas
Commerce Bancshares last year was valued at about 1.2 billion
dlrs, making it similar in size to the Security Pacific-Rainer
deal. The California combination of Wells Fargo and Co <WFC>
and Crocker National Corp last year was worth 1.1 billion dlrs
and there have been several bank mergers in the southeast
valued in the 700-800 mln dlr range.
    "It's a merger of equals," said analyst John Rooney of
Moseley Securities Corp. He said Norstar had a book value at
the end of 1986 of 19.63 dlrs per share, while Fleet's book
value was 28.02 dlrs.
    Rooney noted that Norstar chairman Peter Kiernan is in his
60's while Fleet's Terrence Murray is in his late 40's. He said
Kiernan would probably head the combined company until his
retirement then Murray could assume the top post.
    Analyst Thaddeus Paluszek of Merrill Lynch and Co said
Fleet's earnings would have been diluted about two pct in 1986
on the basis of the merger terms announced today.
    He noted that Fleet has a "teriffic reputation" after
having diversified in a number of financial areas. Fleet has
established consumer banks in the southeast and is known as an
innovator in securitization of mortgages.
    The merged banks would have assets in excess of 25 billion
dlrs and be one of the 25 largest banks in the U.S.  Norstar
operates in most of New York state but not in New York City.
    Lougee said at some point in the future banking operations
that both Norstar and Fleet operate in the state of Maine would
be combined.
    The agreement between Norstar and Fleet includes a
"lock-up" option designed to deter other acquirers. Each
granted the other an option to purchase authorized but unissued
shares amounting to 24.99 pct of the fully diluted shares
outstanding.


.I 11830
.C
earn
.W
<TRIDEL ENTERPRISES INC> SETS INITIAL DIVIDEND.
    TORONTO, March 18 -
    Qtly div five cts
    Pay April 1
    Record March 27


.I 11833
.C
cpi
.W
BRAZILIAN INFLATION LOWER IN FEBRUARY.
    RIO DE JANEIRO, MARCH 18 - Brazilian consumer prices rose
13.9 pct in February, compared to January's record rate of 16.8
pct, the Brazilian Geography and Statistics Institute said in a
statement.
    The February rise brought the increase in consumer prices
since the introduction of the anti-inflation Cruzado Plan a
year ago to 62.5 pct.


.I 11835
.C
interest
.W
VOLATILITY LIKELY TO REMAIN LOW IN DEBT FUTURES.
    By Brad Schade Reuters
    CHICAGO, March 18 - Financial analysts see little chance
that U.S. interest rate futures will break out of their narrow
ranges and low volatility during the remainder of the week.
    "We got a little volatility Wednesday," said Staley
Commodities International analyst Jerome Lacey. "But for the
moment we're still in a trading range."
    Even unexpected developments concerning the growth of the
U.S. economy may not be enough to spur the market out of its
sluggish state, the analysts said.
    "It (the bond market) has not yet demonstrated that it can
break out of its very low volatility," said Carroll McEntee and
McGinley analyst Denis Karnosky. "It needs something, but it's
not going to be news about the economy," he said.
    Karnosky said that the bond market will possibly break out
of the doldrums if participants perceive that the dollar has
stabilized and the Federal Reserve has more room to conduct
monetary policy.
    But even Wednesday, when fed funds were below six pct, the
dollar strong and oil on the soft side, bond futures attracted
eager sellers when contracts approached recent highs, he said.
    In addition to a changing perception about the dollar and
monetary policy, Golden Gate Futures president Norman Quinn
said the beginning of April could bring foreign investors back
into the marketplace.
    "The market is beginning to feel there may be demand at the
beginning of the fiscal year in Japan on April 1," Quinn said.
    Quinn echoed the sentiment of many analysts that there are
large amounts of cash waiting to be invested. If Japanese
investment in U.S. securities does materialize at the start of
Japan's fiscal year, domestic funds may also flow into the bond
market, he said.
    "We could get a stiff rally, possibly enough to bring
yields on long bonds down to seven to 7-1/8 pct," compared to
the current yield of about 7.5 pct, Quinn said.
    In the meantime, even the prospect of new supply is not
likely to move futures.
    The Treasury's announcement of a 15 billion dlr refunding
operation did little to move cash government securities prices
late Wednesday after the close of futures.
    "I'd be surprised if supply pushed us out of it (the
trading range)," Lacey said.


.I 11839
.C
trade
.W
U.S. HOUSE PANEL VOTES TO EASE EXPORT CONTROLS.
    By Jacqueline Frank, Reuters
    WASHINGTON, March 18 - A key House panel voted to greatly
ease government controls on exports as several House committees
moved rapidly toward approval of major changes in trade laws
they hope will help solve U.S. trade woes.
    The House Foreign Affairs Subcommittee on International
Economic Policy voted to direct the administration to cut the
list of controlled exports by 40 per cent by removing items no
longer considered important to U.S. military security.
    Industries had complained they were losing sales to foreign
competitors who were allowed to export freely products U.S.
companies could not sell abroad.
    The issue has been the subject of administration debate.
The Commerce Department had held that unnecessary restrictions
impeded U.S. exports while the Defense Department said current
controls should be retained but better administered.
    Four congressional panels met today to consider portions of
a wideranging trade bill that intends to help U.S. companies
sell more products abroad and to fight unfair foreign trade
practices.
    Their separate proposals, some of them conflicting, will be
woven by House Democratic leaders into a final trade bill for a
vote by the full House in late April.
    Sparked by the proposal of Fujitsu Ltd. to take controlling
interest in Schlumberger Ltd's Fairchild Semiconductor Corp.,
the House Energy and Commerce subcommittee on Commerce voted to
expand Reagan's authority to block foreign takeovers of U.S.
companies.
    Reagan would be able to block any takeover found to be
damaging to U.S. economic or national security interests.
    "We are losing our semiconductors which are at the heart of
our national security," subcommittee chairman James Florio, a
New Jersey Democrat said.
    The subcommittee also called for the administration to
consider retaliation against Japan for its restrictive
government procurement practices.
    The retaliation could be triggered by a requirement that
the administration investigate whether U.S. companies were
treated unfairly and whether they have been barred from bids on
lucrative public works projects such as the eight billion dlr
Kansai airport construction. U.S. firms have complained they
were not allowed to bid on its construction.
    At the urging of the U.S. recording industry, the
subcommittee agreed to bar imports of a new Japanese
product--digital audio recorders.
    Meeting in closed session, the House Ways and Means
Committee agreed to allow President Reagan to retaliate against
foreign countries that refuse to open their markets to U.S.
telecommunications products.
     Congressional aides said the committee also agreed U.S.
companies would be allowed to press for relief from imports of
counterfeit products made in violation of U.S. copyright and
patent laws.
                                         


.I 11840
.C
copper
.W
CHILEAN COPPER WORKERS ELECT LEFT-WING LEADERS.
     SANTIAGO, March 18 - Chilean left-wing leaders were
elected by the copper workers union for the first time since
the left-wing government of Salvador Allende was overthrown in
a 1973 coup.
     Nicanor Araya, a member of the Popular Democratic Movement
(MDP), was named president of the Chilean Confederation of
Copperworkers (CTC), which groups 22,000 workers employed in
the state-owned copper mines, union officials said.
    Other members of the MDP, which includes the communist
party and a faction of the socialist party, took five of the
principal positions on the union's directorate.
    The state-owned copper company of Chile (CODELCO) produces
around 90 pct of the country's copper output of some one mln
tonnes per year. Chile is the world's leading copper exporter
and sales account for just under 50 pct of its export income.
    The MDP won six out of the 14 places on the union's
directorate in elections earlier this month, with the christian
democratic party holding five and the remainder being won by
independents.
    But the left-wing was left in control of the union after
the christian democrats and independents failed to reach
agreement on a joint candidate for the presidency and withdrew
from negotiations.
    Union elections were called following the resignation of
former president Rodolfo Seguel last October.
    Seguel, a christian democrat and Chile's best-known union
leader, said he was forced to step down after repeated court
actions brought by CODELCO prevented the union from operating.
    The labour leader, who now heads the inter-union national
workers command (CNT), was among 500 workers sacked by CODELCO
following a strike in 1983.
    The strike, the only copper industry stoppage staged in the
past 13 years, marked the start of a wave of protests against
the military rule of President Augusto Pinochet.
     CODELCO argued that Seguel could not continue as union
leader when no longer employed by the company.


.I 11841
.C
acq
.W
GENCORP <GY> BIDDER PLANS SALE OF AEROSPACE UNIT.
    WASHINGTON, March 18 - <General Partners>, controlled by
privately-held Wagner and Brown and by AFG Industries Inc, said
plans to sell GenCorp Inc's aerospace and soft drink bottling
divisions if it succeeds in acquiring the company.
    In a filing with the Securities and Exchange Commission,
General Partners said proceeds from the sale of GenCorp's
aerospace division would help it repay some of the debt it
would incur in the 100 dlr a share cash tender offer.
    General Partners, which launched the surprise tender offer
today, said it already 2,180,608 shares of GenCorp, or 9.4 pct
of the total outstanding common stock.
    General Partners, which estimated the total cost of the
takeover at 2.5 billion dlrs, also said it plans to continue
GenCorp's policy of trying to settle Federal Communications
Commission charges against two of its television and 12 radio
station licenses.
    It said it would also continue GenCorp's policy of trying
to sell its New York-area television station WOR to MCA Inc
<MCA> for 387 mln dlrs and its Los Angeles station KHJ to Walt
Disney Co <DIS> for 217 mln dlrs.
    But General Partners said it plans to keep GenCorp's
headquarter in Akron, Ohio.
    General Partners also said it would maintain GenCorp's
plastics and industrial products division as well as tires and
related products.
    But it left open that it might make other changes in
GenCorp's operations after it completes the merger.
    Besides using 250 mln dlrs of its own equity for the tender
offer, General Partners said it would seek one billion dlrs
under a secured margin facility from Wells Fargo Bank N.A.
and other banks. It also said it would seek 1.25 billion dlrs
from the sale to Shearson Lehman Brothers Holdings Inc or its
affiliates of senior subordinated promissory notes.
    In a March 18 letter to GenCorp Chairman William Reynolds,
which was included in the SEC filing, General Partners
officials said they were "confident of our ability to promptly
obtain the remaining funding as described in our offer
materials."
    "For this reason, we do not forsee any obstacles to a
prompt consummation of the transaction," General Partners said.
    Shearson is dealer manager of the General Partners offer
for GenCorp.


.I 11842
.C
acq
.W
MONSANTO <MTC> SAYS DEBT WAS CUT IN 1986.
    ST. LOUIS, March 18 - Mondanto Co said it has paid off
two-thirds of the debt from its 2.8 billion-dlr acquisition of
G.D. Searle and Co by the end of 1986.
    This lowered the company's debt-to-capitalization ratio
from 45 pct at the end of 1985 to 35 pct, it said.
    The company also said that chemical sales accounted for 52
pct of its sales in 1986, down from 70 pct in 1981. This
underscores its strategy of shifting away from low profit
commodity chemicals in mature markets into higher value
chemical businesses in high growth areas, it said.


.I 11843
.C
acq
.W
LIFESTYLE <LIF>, BOMBAY AMEND MERGER AGREEMENT.
    NEW YORK, March 18 - Lifestyle Restaurants Inc said it
reduced the number of Bombay Palace Restaurants inc common
shares to be received in its previously announced merger
agreement.
    Under the amended deal, Lifestyle shareholders will get one
Bombay share for each six instead of five Lifestyle shares.
Under the amended offer, Bombay will issue about 900,000
shares, currently 7.2 mln dlrs.
    The amendment also increases the cash consideration to be
offered on Lifestyle's 13 pct convertible subordinated
debentures from 55 pct of the principal amount to 57.5 pct.
        


.I 11844
.C
earn
.W
WEISFIELD'S INC <WEIS> QUARTERLY DIVIDEND.
    SEATTLE, March 18 -
    Qtly div 12-1/2 cts vs 12-1/2 cts
    Pay April 23
    Record April 2


.I 11847
.C
tin
.W
BOLIVIAN TIN MINERS START HUNGER STRIKE.
     LA PAZ, March 18 - About 9,000 miners employed by the
state corporation Comibol went on hunger strike to press for
higher wages, a miners union spokesman said.
     Victor Lopez, executive secretary of the miners union,
told a news conference the strikers began to fast in the major
tin mining districts of oruro and potosi and the action would
spread tomorrow to la paz and other areas.
     The government has charged that the strike by the miners
union, crippled by massive layoffs, is part of a left-wing
destabilisation plan to coincide with the visit of West German
president Richard von Weizsaecker, who arrives on a four-day
official tour on Friday.
     But miners union chief Simon Reyes told reporters the
strike had nothing to do with subversion and was to press for
more government investment in Comibol.
     The government of president Victor Paz Estenssoro has
streamlined the deficit-ridden state mining corporation laying
off about 20,000 miners, two-thirds of the workforce, following
a collapse of the international tin price in 1985.


.I 11848
.C
sugar
.W
CZARNIKOW EXPECTS LOWER EUROPEAN SUGAR OUTPUT.
    LONDON, March 19 - European sugar output on the basis of
three year average yields will be over half a mln tonnes white
value down on last year although yields do vary widely from
year to year, broker C Czarnikow said in its market review.
    European Community sowings are likely to be down compared
with last year. There have been suggestions these sowings might
respond to the recent upsurge in world prices, but Czarnikow
said "it is not the sort of fact that easily becomes known."
    The broker bases its forecasts on Licht planting estimates
which put W Germany, the Netherlands and USSR lower but
Hungary, Romania, Poland, Turkey and Yugoslavia higher.
    Czarnikow's projections in mlns tonnes white value and
three differing yields include
      '87/88  max      aver      min    1986/87
 France       3.57     3.42     3.28       3.44
 W Germany    3.08     2.88     2.64       3.19
 EC          13.82    13.01    12.13      13.76
 W Europe    17.71    16.45    14.98      16.71
 Poland       2.02     1.80     1.13       1.74
 USSR         8.65     7.60     5.71       8.05
 E Europe    13.87    12.14     9.08      12.44
 All Europe  31.58    28.58    24.06      29.15


.I 11852
.C
sugar
.W
CUBAN SUGAR OUTPUT SEEN AT 7.5 MLN TONNES.
    LONDON, March 19 - Cuban sugar output this season (1986/87)
is put at around 7.5 mln tonnes raw value by broker C.Czarnikow
in its monthly sugar market review.
    Allowing for around 700,000 tonnes for the current year's
domestic usage it would leave around 6.8 mln tonnes for export
of which, Czarnikow estimates, about 3.7 mln tonnes will be
taken by the USSR, 1.530 mln by other socialist countries and
the remainder for delivery to non-socialist bloc destinations.
    Czarnikow also estimated USSR 1986/87 production at 8.75
mln tonnes raw value which when added to the 3.7 mln imports
from Cuba and set against its estimated domestic and export
needs of 14.2 mln tonnes will leave a gap of 1.75 mln tonnes to
be acquired from the world market. Soviet purchases to date may
not be far short of that quantity, Czarnikow said.


.I 11854
.C
ship
.W
U.S. CARGO PREFERENCE FUNDING ACCORD SEEN NEAR.
    WASHINGTON, MARCH 18 - The U.S. Departments of Agriculture
and Transportation are close to agreement on how to fund the
increasing share of food aid to be shipped on U.S. flag vessels
under a 1985 farm bill provision on cargo preference.
    Melvin Sims, USDA's general sales manager told a House
Agriculture Appropriations subcommittee hearing that the two
departments are negotiating a "memorandum of understanding" on
cargo preference.
    Under a 1985 farm bill provision, the percentage of food
aid shipments carried on U.S. flag vessels was to gradually
increase over three years to 75 pct in 1988. The increased cost
of using U.S. vessels was to be funded by the Transportation
Department instead of USDA. However, USDA officials said
Transportation has so far contributed no money.
    The agreement between USDA and Transportation is expected
to resolve the matter, USDA officials said.
    Tom Kay, administrator of the USDA's Foreign Agricultural
Service said yesterday the requirement that more food aid
shipments be carried on U.S. vessels has been difficult to
meet.
    "As the tonnage (required under cargo preference) goes up,
its going to be harder and harder to meet," Kay said.
    Two farm state Congressmen, Pat Roberts (R-Kan.) and Glenn
English (D-Okla.) said cargo preference makes U.S. farm export
programs more costly and the program should be eliminated.
    In the past, farm interests opposed to cargo preference
have been defeated in Congress by the maritime interests who
view cargo preference as vital to the U.S. shipping fleet.


.I 11855
.C
gnp
.W
******AUSTRALIAN FOURTH QTR GDP RISES 1.1 PCT, AFTER 0.2 PCT THIRD QTR RISE - OFFICIAL.
Blah blah blah.

.I 11856
.C
gnp
.W
AUSTRALIAN GDP RISES 1.1 PCT IN FOURTH QUARTER.
    CANBERRA, March 19 - Australia's seasonally adjusted real
gross domestic product (GDP) rose 1.1 pct in the fourth quarter
of 1986 after rising 0.2 pct in the third quarter, the
Statistics Bureau said.
    This compares with a 1.1 pct fall in the fourth quarter of
1985.
    Compared with the year-earlier quarter, GDP also rose 1.1
pct, the Bureau figures show.
    The annual rise compares with a 0.3 pct fall in the third
quarter compared with the 1985 third quarter and a 4.3 pct rise
in the year-earlier period, the Bureau figures show.
    Real non-farm gross product rose 0.9 pct in the fourth
quarter after zero growth in the third quarter and a 1.3 pct
fall a year earlier, making an annual rise of 0.8 pct.
    Gross farm product rose 4.3 pct compared with rises of 2.6
pct in the third quarter and 2.8 pct a year earlier, making
annual growth of 6.6 pct.
    Elements in the fourth quarter GDP rise included falls of
0.6 pct and 0.2 pct in private and government final consumption
expenditure respectively, the Bureau figures show.
    Gross fixed capital expenditure fell 0.1 pct in the quarter
while exports of goods and services rose 13.0 pct and imports
2.9 pct.
    Seasonally-adjusted expenditure on GDP at average 1979/80
prices rose to 36.67 billion dlrs in the fourth quarter from
36.26 billion in both the third quarter and the year-earlier
quarter.
    The figures are subject to revision over a long period.


.I 11857
.C
acq
.W
NIPPON LIFE SEEKING TIE WITH U.S. SECURITIES HOUSE.
    TOKYO, March 19 - <Nippon Life Insurance Co> is pursing a
possible link with an American securities house to expand its
overseas investment portfolio, a company spokesman said.
    But he declined to comment on rumours the company would
take a 10 pct stake in <Shearson Lehman Brothers>, an
investment banking unit of American Express Co <AXP>.
    He said the firm started to sound out several U.S.
Investment banks on capital participation about 18 months ago
and was narrowing the number of prospects, but he did not say
if it had set its sights on one firm.
    Nippon Life, Japan's largest life insurer, also plans to
set up a wholly owned investment unit, <Nissei International
America>, in New York next month and subsidiaries in Canada,
Singapore, the Cayman Islands and Jersey this year, he said.
    These moves are in line with its long-term strategy to put
more emphasis on overseas investment management as
opportunities at home are declining while the company's assets
are growing.
    The company is especially attracted by the scale and depth
of U.S. Money and credit markets and wants to establish a firm
foothold there, the spokesman added.


.I 11858
.C
money-fx;nzdlr;
.W
FORMER N.Z. PREMIER CALLS FOR CHEAPER CURRENCY.
    WELLINGTON, March 19 - Former Prime Minister Robert
Muldoon, an outspoken advocate of a managed float for the N.Z.
Dollar, said the currency is at least 10 pct overvalued.
    Muldoon said in a speech last night the exchange rate
should be around 48 U.S. Cents instead of the current 57 cents.
    "A reasonable value for the New Zealand dollar would be
between 10 and 15 pct less and nearer 15 than 10. Perhaps
around about 48 cents," he said.
    The Labour Party government removed exchange controls and
floated the dollar two years ago when it was worth 44 cents.
    Muldoon has no rank in the opposition National Party, and
party leaders, with an eye to general elections to be held by
September, have rejected his calls for a managed float.
    He said the dollar was high because of "grossly excessive"
interest rates for government stock.
    "I know of no other country which is implementing such a
free floating policy," he added. "There is widespread agreement
internationally that we have no alternative to floating
currencies in the short to medium term. But we need more
effective methods of managing them so as to limit the
volatility which has caused so much concern and damage."


.I 11859
.C
wheat;grain;
.W
TAIWAN SETS 1987 CANADIAN WHEAT IMPORT TARGET.
    TAIPEI, March 19 - The Taiwan Flour Mills Association will
import 81,000 tonnes of wheat from Canada in calendar 1987,
unchanged from the 1986 level, an association spokesman told
Reuters.
    He said the total will be delivered in three shipments. The
first will be shipped to Taiwan between March 20 and April 20
and the other two will be made later this year, he said.
    The total wheat import target this year has been set at
700,000 tonnes, down from actual imports of 758,770 last year.
    Most of Taiwan's wheat imports come from the U.S., The
spokesman said.


.I 11864
.C
jobs
.W
NEW ZEALAND UNEMPLOYMENT FALLS IN FEBRUARY.
    WELLINGTON, March 19 - New Zealand's unemployment rate fell
to 6.0 pct of the workforce at the end of February from 6.1 pct
in January but was above the 4.3 pct level of February 1986,
the labour department said.
    It said the number of unemployed fell to 78,711 from 81,558
in January, and compared with 57,103 in February 1986.


.I 11865
.C
trade
.W
JAPAN MARCH INTERIM TRADE SURPLUS FALLS.
    TOKYO, March 19 - Japan's customs-cleared trade surplus
fell to 1.89 billion dlrs in the first 10 days of March from a
1.91 billion surplus a year earlier, the Ministry of Finance
said.
     The March interim surplus compared with a 1.70 billion dlr
surplus in the same February period.
     FOB exports in the first 10 days of March rose 5.8 pct
from a year earlier to 5.50 billion dlrs and CIF imports rose
9.7 pct to 3.61 billion.
     The average yen/dollar rate used for the statistics was
153.67 yen against 181.23 a year earlier.


.I 11866
.C
acq
.W
MITSUI AND CO BUYS STAKE IN IMATRON.
   TOKYO, March 19 - A Mitsui and Co <MITS.T> spokesman said
its subsidiary <Mitsui and Co USA Inc> bought two mln dlrs of
newly-issued shares in <Imatron Inc>, an unlisted
California-based medical equipment manufacturer.
    Mitsui and Co USA is now Imatron's fifth-largest
shareholder with 3.1 pct of the firm's outstanding shares.
Imatron is capitalised at 32.76 mln dlrs, the spokesman said.
    Mitsui and Co intends to import Imatron's computerised
diagnostic equipment into Japan, he said.


.I 11867
.C
rubber;palm-oil;veg-oil;bop;trade;
.W
INDONESIA SEES LIMITED CHOICES ON ECONOMY.
    JAKARTA, March 19 - Indonesia cannot spend its way out of
recession and has very limited economic options due to lower
world oil prices, Central Bank governor Arifin Siregar was
quoted as saying by the official Antara news agency.
    "If Indonesia spurs its economic growth too much, such as
through expansionary monetary and budgetary policies, it might
create negative effects not only on price increases, but also
on the balance of payments," he told bankers and businessmen in
the North Sumatran city of Medan.
    Antara quoted him as saying Indonesia is relying on its
export drive to help narrow its trade deficit.
    Antara reported that Siregar said the government wanted to
help boost exports from the rubber and palm oil industries,
which are centered in Sumatra.
    "I see Sumatra has great potential, as in the plantation
sector in which family units are employed in great number," he
said, according to the agency.
    Indonesia relied on oil and gas exports for 70 pct of its
export revenue until last year's fall in crude prices.
    It has projected its current account deficit will widen to
over four billion dlrs in the current financial year ending
March 31 from 1.8 billion in 1985/86.


.I 11868
.C
retail
.W
NEW ZEALAND RETAIL SALES SLOW IN JANUARY.
    WELLINGTON, March 19 - Seasonally adjusted retail sales
rose by 0.1 pct in January, compared with increases of 5.7 pct
in December and 1.0 pct a year earlier, the Statistics
Department said.
    It said in a statement actual retail sales fell to 1.87
billion N.Z. Dlrs in January against 2.42 billion a month
earlier and compared with 1.78 billion in January 1986.
    Year-on-year retail sales rose 5.3 pct compared with a 9.6
pct increase in the year-earlier period.


.I 11870
.C
gold
.W
SOME 7,000 SOUTH AFRICAN MINERS RETURN TO WORK.
    JOHANNESBURG, March 19 - Some 7,000 black workers returned
to work after staging one-day strikes at two mines on Monday,
the National Union of Mineworkers and the companies that own
the mines said.
    About 6,000 miners resumed work at the Grootvlei gold mine
east of Johannesburg after protesting the transfer of
colleagues to other jobs at the same mine, owners General
Mining Union Corp Ltd <GENM.J> said.
    The union said about 1,000 mineworkers at a new coal
facility owned by Anglo American Corp of South Africa Ltd
<ANGL.J> also returned to their jobs on Tuesday.
    The workers at Anglo's Vaal Colliery south of Johannesburg
had struck to protest the alleged refusal of officials of the
South African homeland of Transkei to allow miners to attend a
funeral in the homeland, a union spokesman said.


.I 11872
.C
gnp;bop;trade;
.W
AUSTRALIAN EXPORTS HELPING TO BOOST GDP.
    By David Skinner, Reuters
    SYDNEY, March 19 - The strong contribution of exports to
the growth in Australia's gross domestic product (GDP) in the
fourth quarter of 1986 was a significant and welcome feature of
the data, private economists polled by Reuters said.
    Real GDP rose 1.1 pct in the fourth quarter of 1986, after
rising 0.2 pct in the third quarter and falling 1.1 pct a year
earlier.
    Equally significant was the decline in both private and
government spending, they said.
    Exports of goods and services rose 13 pct in the fourth
quarter, while imports rose only 2.9 pct, Statistics Bureau
figures show. Consumer spending declined 0.6 pct and government
spending by 0.2.
    Bob Edgar of the Australia and New Zealand Banking Group
Ltd said the government's aim of reducing the current account
deficit by boosting exports and lowering consumption to cut
imports appeared to be working.
    However, he cautioned that care must be taken to keep
growth restrained because if it accelerated too fast imports
would increase and worsen the balance of payments.
    Andre Morony of Bankers Trust Australia Ltd added the
result was positive because growth was export-driven.
    But he said the GDP rise came as no surprise given the
growth in exports disclosed in other statistics.
    The economists' comments were echoed by Treasurer Paul
Keating in a statement issued in Canberra.
    Keating said the figures showed encouraging trends for a
reduction in the current account deficit, notably the decline
in domestic demand and the strong increase in exports.
    A further 3.5 pct fall in the terms of trade in the quarter
underscored the need to continue restraint in wages, prices and
public sector spending and borrowing to improve Australia's
competitiveness, he said.
    "It is clear that through the continued application of that
strategy Australia will make the necessary adjustments in its
external accounts and return to a more sustainable growth
pattern," he added.


.I 11873
.C
wheat;grain;
.W
AUSTRALIAN WHEAT BOARD RENEWS JAPAN SUPPLY PACT.
    MELBOURNE, March 19 - The Australian Wheat Board (AWB)
expects to sell about 900,000 tonnes of wheat to the Japanese
Food Agency this year after renewing its annual supply
agreement, AWB general manager Ron Paice said.
    Under the agreement, the AWB makes the wheat available and
sells into the Food Agency's regular tenders, he said in a
statement.
    He noted that the Board has sold more than three mln tonnes
to Japan in the past three years.


.I 11874
.C
acq
.W
SANWA BANK ACQUIRES SMALL STAKE IN PORTUGUESE BANK.
    TOKYO, March 19 - Sanwa Bank Ltd <ANWA.T> has agreed to buy
a two pct stake in Oporto-based <Banco Portugues de Investmento
Sarl> (BPI), Portugal's largest merchant bank, a Sanwa official
said.
    Sanwa will purchase the shares from International Finance
Corp, a BPI shareholder and sister organisation of the World
Bank, for 351 mln yen, he said.
    The acquisition will be completed this month as both the
Japanese and Portuguse governments are expected to give
permission soon.  This is the first time a Japanese bank has
bought a stake in a Portuguese bank.
    Sanwa plans to increase its stake in BPI to four pct, the
ceiling for foreign shareholders, the official said.
    The bank has also agreed with <Banco Portugues do
Atlantico>, a state-owned merchant bank in Oporto, to exchange
information on customers and help accelerate Japanese
investment and technological transfers to Portugal, he said.


.I 11877
.C
trade
.W
INDIA TRADE DEFICIT FALLS.
    NEW DELHI, March 19 - India's trade deficit is
provisionally estimated at 58.34 billion rupees in the first 10
months of fiscal 1986/87 ending March, compared with 70.62
billion in the year ago period, the Commerce Ministry said.
 Exports rose in the latest period to 100.75 billion rupees
from the a year earlier 86.09 billion and imports to 159.09
billion from 156.71 billion in the period, the figures show.
    The trade deficit for all of 1986/87 is provisionally
estimated at around 70 billion rupees from an estimated record
87.47 billion in 1985/86 and actual 53.18 billion in 1984/85,
Commerce Minister P. Shiv Shanker told reporters last month .


.I 11878
.C
cpi
.W
SWEDEN REVISES DOWN JANUARY'S INFLATION FIGURE.
    STOCKHOLM, March 19 - Sweden's rate of inflation during
January has been revised downwards after a fault was made in
calculating the figures, the Central Bureau of Statistics said.
    The January rise in consumer prices was 1.0 pct instead of
the previously announced 1.3 pct, the bureau said, without
explaining how the error arose.
    Consumer prices in February rose 0.3 pct compared with 0.1
pct in February last year, the bureau said. The total inflation
rate so far this year is therefore 1.3 pct, allowing for
January's revised figures, it added.
    Year-on-year inflation rose to 3.4 pct in February, against
a revised 3.2 pct in January and a year-on-year rate of 5.3 pct
in February 1986, the bureau said.
    The slowdown in price rises was mainly due to a government
imposed price freeze which came into force on February 4, the
bureau added.


.I 11881
.C
iron-steel
.W
TAIWAN STEEL FIRM SEES LOWER EXPORTS, MORE OUTPUT.
    TAIPEI, March 19 - State-owned <China Steel Corp> said its
steel exports will drop to some 600,000 tonnes in the year
ending June 30, 1987 from more than 810,000 in 1985/86.
    Production by the company, Taiwan's largest steel maker, is
expected to rise to 3.33 mln tonnes from 3.27 mln, a spokesman
told Reuters.
    He attributed the export decline to the rise in the Taiwan
dollar, which has eroded the competitiveness of the company's
products against those from South Korea.
    The spokesman said the company is undergoing an expansion
project which calls for a boost in production to 5.65 mln
tonnes a year from the current level. The project, costing 52.3
billion Taiwan dlrs, will be completed by April 1988, two
months ahead of the targetted date, he said.
    The spokesman said the company exports its products to
Japan, Southeast Asia, Hong Kong, the U.S., The Middle East and
Africa.


.I 11882
.C
earn
.W
****** SWISSAIR 1986 NET 64.5 MLN SWISS FRANC VS 68.5 MLN, DIV 33 FRANCS VS 38.
Blah blah blah.

.I 11883
.C
money-supply
.W
PHILIPPINES' LIQUIDITY RISES, LOAN DEMAND FALLS.
    MANILA, March 19 - Liquidity in the Philippines rose in
December while loan demand and short-term lending rates fell,
the Central Bank said.
    A bank official said M-3 rose 9.72 pct to a provisional
149.80 billion pesos at the end of December from a month
earlier for a year-on-year gain of 12.72 pct.
    She said short-term bank lending rates fell to an
annualised 13.88 pct at the end of December, from 14.58 pct a
month earlier and 19.82 pct at the end of December 1985.
    Poor loan demand was illustrated by a rise in commercial
bank reserves, the official said.
    The bank official said commercial bank reserves were 22.19
billion pesos at the end of December, when reserves required
were 21.59 billion.
    She said the surplus of 597 mln pesos, compared with a
deficit of 390 mln pesos a month earlier and a deficit of 1.64
billion at the end of 1985, reflected political uncertainty in
the last quarter of 1986.
    Reserve money, the total available to monetary authorities,
was a provisional 52.58 billion pesos at the end of 1986. This
was 5.19 pct up from 49.98 billion at the end of November and
41.85 pct up from 37.09 billion in December 1985.
    The bank official noted M-3, which includes M-1 money
supply, plus savings, time deposits and deposit substitutes.
Was 132.88 billion pesos at the end of December 1985.
    M-1 money supply rose a provisional 17.3 pct to 42.86
billion pesos at the end of December 1986 from 36.52 billion a
month earlier. The year-on-year rise was 19.64 pct, up from
35.83 billion at the end of December 1985.
    The bank official said the broader M-2 measure, which
measures notes and coins in circulation plus savings and time
deposits, rose a provisional 9.7 pct to 140.88 billion pesos at
the end of December from 128.41 billion a month earlier. It
rose 13.35 pct from 124.27 billion at the end of December 1985.
    She said deposits with the commercial banking system rose
to just over 118 billion pesos at the end of December from
107.89 billion at the end of 1985 and 92.83 billion at the end
of 1984.


.I 11885
.C
earn
.W
SWISSAIR <SWSZ.Z> YEAR 1986.
    ZURICH, March 19 -
    Net 64.5 mln Swiss francs vs 68.5 mln
    Div 33 francs per share vs 38
    Turnover 4.03 billion vs 4.35 billion.


.I 11888
.C
wpi
.W
FINNISH WHOLESALE PRICES RISE 0.2 PCT IN FEBRUARY.
    HELSINKI, March 19 - Finnish wholesale prices rose 0.2 pct
in February after a rise of one pct in January and a drop of
1.2 pct in February 1986, the Central Statistical Office said.
    Year-on-year wholesale prices fell 1.9 pct in February
after drops of 3.3 pct in January and 1.8 pct in February 1986.
    The wholesale price index, base 1980, was 136.5 in
February, 136.3 in January and 139.2 in February last year.


.I 11889
.C
trade
.W
CHINA, TAIWAN TRADE VIA HONG KONG FELL IN 1986.
    HONG KONG, March 19 - The value of trade between China and
Taiwan via Hong Kong fell 13 pct to 7.45 billion H.K. Dlrs in
1986 from 8.59 billion dlrs in 1985, Hong Kong's Census and
Statistics Department said.
    Taiwan's exports to China through Hong Kong fell to 6.33
billion dlrs last year from 7.69 billion in 1985, while China's
exports rose to 1.12 billion dlrs from 904 mln dlrs.
    Economists in Hong Kong told Reuters that China's controls
on scarce foreign currency hurt its imports of Taiwanese
consumer goods, such as electric fans and television sets.
    Herbal medicine and textiles were among China's chief
exports to Taiwan.
    Taiwan does not allow direct trade with China and indirect
trade is routed mainly through Hong Kong.


.I 11894
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 450 MLN STG.
    LONDON, March 19 - The Bank of England said it forecast a
shortage of around 450 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 650 mln stg while a rise in note circulation will take out
around 30 mln stg.
    Partly offsetting these outflows, bankers' balances above
target and exchequer transactions will add some 200 mln stg and
35 mln stg to the system respectively.


.I 11895
.C
cpi
.W
BRAZILIAN MONTHLY INFLATION DIPS SLIGHTLY.
    RIO DE JANEIRO, March 19 - Brazilian consumer prices rose
13.9 pct in February, compared with January's record rate of
16.8 pct, the Brazilian Geography and Statistics Institute
(IBGE) said in a statement.
    The February rise brought the increase in consumer prices
since the introduction of the anti-inflation Cruzado Plan a
year ago to 62.5 pct.


.I 11896
.C
reserves
.W
****** German net currency reserves fall 5.4 billion marks to 81.7 billion - Bundesbank.
Blah blah blah.

.I 11898
.C
gold
.W
NORTH KOREA TO RESURRECT GOLD MINE TO REPAY DEBT.
    TOKYO, March 19 - Pyongyang and a group of Tokyo-based
North Korean businessmen plan to resurrect a North Korean
goldmine and boost annual output to almost one tonne within two
years from 600 pounds at present, said Li Sangsu, a spokesman
for <Unzan Mine Development Co>, the venture partner.
    Work will begin on April 3 and the company aims to increase
output to 10 tonnes within a decade to pay off Pyongyang's 70
billion yen debt to 30 Japanese companies, Li added.
    "We expect this mine to be worth about 2,000 billion yen in
gold deposits," he said.
    The mine, started in 1896 by a U.S. Company, is one of six
or seven virtually untapped mines in the Unzan area, 94 miles
north of Pyongyang, Li said.
    Li said modern equipment and advanced technology would
increase yields. "Up to now, the mining was done with antiquated
methods and basic equipment."
    The gold mine scheme is the latest in a series of moves by
North Korea to clear its debts to Japanese creditors.
    Earlier this year, Pyongyang tried and failed to pay off
part of its debt with several tonnes of fish.


.I 11899
.C
earn
.W
******Legal and General Group 1986 pre-tax profit 83.2 mln stg vs 31.5 mln.
Blah blah blah.

.I 11906
.C
veg-oil
.W
CARGILL U.K. STRIKE TALKS TO RESUME TUESDAY.
    LONDON, March 19 - Three consecutive days of talks between
management and unions aimed at ending the three month old
strike at Cargill U.K. Ltd's oilseed processing plant at
Seaforth, ended yesterday without resolving the situation,
although some progress was made, a company spokesman said.
    Fresh talks have been scheduled for next Tuesday, he said.


.I 11907
.C
veg-oil;soy-oil;
.W
EC FARM LOBBIES BACK OILS AND FATS "TAX" PLAN.
    BRUSSELS, March 19 - The European Community (EC) farmers'
and farm cooperatives lobbies, Copa and Cogeca, have backed the
EC Commission plan for an oils and fats price stabilisation
mechanism, claiming it would not harm consumers.
    In a letter to Belgian Foreign Minister Leo Tindemans,
current president of the EC Council of Ministers, they said the
mechanism, often referred to as a tax, would in fact subsidise
oils and fats prices in the EC under some circumstances.
    This would have been the case in May 1984, when soya oil
prices cif Rotterdam stood at 914 dlrs a tonne, they noted.
    If such price stabilisation is not implemented, EC farmers
should not be the ones to suffer through their prices and
incomes from the financial consequences, the letter, made
available to journalists, said.
    Under the Commission proposal the mechanism would initially
result in a tax of 330 Ecus a tonne on both imported and EC
produced oils and marine fats.
    The mechanism would provide for this tax to be reduced, and
possibly to become a subsidy, as world soya oil prices rose
from present levels.


.I 11908
.C
zinc
.W
OECD EUROPE ZINC STOCKS RISE IN JANUARY.
    LONDON, March 19 - Producers zinc stocks in Organization
for Economic Co-operation and Development (OECD) European
countries rose to 159,732 tonnes in January from 151,171 in
December and 127,725 in January 1986, latest International Lead
and Zinc Study Group (ILZSG) figures show. Other figures were -
                      JAN'87  DEC'86   JAN'86
 Refined production   155,980 164,243 166,968
 Refined deliveries   131,910 122,364 136,727
 Mine output (metal
 content)              77,120 70,560  81,356


.I 11909
.C
crude
.W
ECONOMIC SPOTLIGHT - SAUDI ARABIA RESHAPES ECONOMY.
    By Stephen Jukes, Reuters
    RIYADH, March 19 - Higher world oil prices, coupled with a
new realism ushered in by austerity, could lift Saudi Arabia's
economy after five years of falling revenue and growing budget
deficits, bankers and diplomats said.
    The months ahead will prove critical as the government
attempts a balancing act between defending higher oil prices
and fostering recovery through a bigger role for the private
sector.
    Economists said oil earnings could recover this year to
about 20 billion dlrs and nominal gross domestic product could
grow by about three pct, the first rise since 1982.
    But the economists said this will be possible only if the
Organisation of Petroleum Exporting Countries (OPEC) succeeds
in defending world oil prices and if Saudi Arabia is not forced
to curtail output for too long.
    Saudi Arabia is now keeping production down to defend
OPEC's newly-established 18 dlr a barrel benchmark price.
    Oil Minister Hisham Nazer told Reuters output is running at
about three mln barrels per day (bpd), well down on Saudi
Arabia's OPEC quota of 4.13 mln set for the first half of 1987.
    King Fahd has stamped his personal authority on OPEC's
new-found determination to defend prices in a move Western
diplomats believe underlines the kingdom's need to secure a
stable source of income for its economy.
    Saudi Arabia, still the world's largest oil exporter, is a
hugely wealthy country. But the past five years of declining
revenue have taken their toll. Economists estimate gross
domestic product fell 10 pct last year and 8.6 pct in 1985.
    Oil revenue last year, when prices briefly dipped below 10
dlrs per barrel, probably totalled no more than 17.5 billion
dlrs, compared to a peak 101.8 billion in 1981.
    "Austerity is still the watchword, but Saudi Arabia will not
be allowed to dip further into recession ... The Saudis can
afford to draw down reserves temporarily to offset the worst
effects," a diplomat said.
    In the short-term, the kingdom can lessen the impact of
lower oil revenues and a gaping budget deficit by drawing on
foreign reserves, still put at around 100 billion dlrs.
    But such a policy cannot be pursued indefinitely. Bankers
and diplomats said it would amount to fiscal recklessness in
the longer term.
    It also increases the dominance of the public sector at a
time when the government is publicly urging private enterprise
to take over the lead role in the economy.
    Bankers and diplomats said the government is well aware of
the risks attached to this policy but is determined to "tough it
out" on the oil front even if that means a short-term depletion
of reserves.
    The 1987 budget deficit is targetted at a huge 52.7 billion
riyals or 31 pct of total outlay. The budget explicitly
recognises the need to draw down reserves while foreign
borrowing has been ruled out.
    Commerce Minister Suleiman Abdulaziz al-Salim told Saudi
businessmen this week the government had carefully considered
the need to stimulate the economy when drawing up its budget
plans late last year.
    "It therefore took the bold step of withdrawing more than 50
billion riyals from its reserves and pumping it into the
economy," he said.
    Reserves were built up during the late 1970's and early
1980's when Saudi Arabia's breakneck pace of construction and
tales of high spending became legendary.
    The shrinking economy has wrought huge changes in the
fabric of the Kingdom's private sector where poor management
had gone unpunished in the easy days of the oil boom.
    Modern techniques of cost control have been introduced,
markets expanded and outsized labour forces and inventories cut
back. The expatriate workforce has fallen sharply.
    The number of new bankruptcies appears to be declining but
Saudi banks, hit hard by non-performing loans to the corporate
sector, have become highly selective in extending new credit.
    Government moves to encourage lending and investigate
company complaints about late public sector contract payments
could boost confidence but recession has slowed the nation's
industrialisation program and discouraged foreign investment.
    Private wealth is still very high and banks report more and
more cash being placed on deposit.
    As Saudi Arabia attempts to shift the weight of economic
development from the public to the private sector, one of the
biggest tasks will be to convince businessmen to channel
personal savings into industrial projects within the kingdom
and refrain from the temptation to invest abroad.


.I 11911
.C
sugar
.W
EC SUGAR TENDER SEEN AS CONCESSION TO PRODUCERS.
    BRUSSELS, March 19 - The rebate granted at yesterday's EC
sugar tender represents some concession to producers'
complaints that they are losing money on exports outside the
bloc, EC Commission officials said.
    The maximum rebate of 44.819 European currency units (Ecus)
per 100 kilos was 1.3 Ecus below what producers say is needed
to obtain the equivalent price to that offered for sales into
intervention.
    The rebate at last week's tender was 2.5 Ecus per 100 kilos
short of the level producers said was needed, the officials
said.
    The officials said the Commission is not negotiating with
producers who have offered a total of 854,000 tonnes of sugar
for sale into intervention in an apparent attempt to persuade
it to offer higher rebates.
    They said the French and German producers involved are now
unable to withdraw this offer before April 1 when the sugar
will officially enter intervention stores.
    Payment for it is due five weeks later, and it will be open
to them to withdraw their offers at any time between April 1
and the official payment date when the Commission officially
takes ownership of the sugar, the officials said.
    The officials said if the Commission has to buy the sugar,
it is determined to immediately resell it, a move which would
drive down market prices further.
    They expressed some hope that the operators would not
eventually go through with their plan for intervention sales.
    "We think they realise they have gone too far," one official
said.


.I 11912
.C
earn
.W
JOHN FAIRFAX LTD <FFXA.S> FIRST HALF.
    SYDNEY, March 19 - 26 weeks ended Dec 28
    Net shr 25.9 cents vs 28.2
    Int div 5.5 cents vs 5.0
    Pre-tax 48.30 mln dlrs vs 44.29 mln
    Net 25.94 mln vs 25.35 mln
    Turnover 453.28 mln vs 407.35 mln
    Other income 4.48 mln vs 3.18 mln
    Shrs 100 mln vs 90 mln.
    NOTE - Div pay May 8. Reg April 14.
    Net is after tax 22.09 mln dlrs vs 18.60 mln, interest
11.60 mln vs 13.92 mln, depreciation 8.52 mln vs 7.06 mln and
minorities 267,000 vs 346,000 but before net extraordinary
profit 89.32 rpt 89.32 mln dlrs vs nil.


.I 11913
.C
earn
.W
******Britoil Plc 1986 pre-tax profit 134 mln stg vs 759 mln.
Blah blah blah.

.I 11914
.C
earn
.W
FAIRFAX SAYS HIGHER TAX HITS FIRST HALF EARNINGS.
    SYDNEY, March 19 - Media group John Fairfax Ltd <FFXA.S>
said that its flat first half net profit partly reflected the
impact of changes in the Australian tax system.
    Fairfax earlier reported net earnings edged up 2.3 pct to
25.94 mln dlrs in the 26 weeks ended December 28 from 25.35 mln
a year earlier although pre-tax profit rose 9.1 pct to 48.30
mln from 44.29 mln.
    Net would have risen 10.1 pct but for the increase in
company tax to 49 pct from 46 and the imposition of the tax on
fringe benefits, paid by employers and not the recipients, the
company said in a statement.
    Fairfax also pointed to the cyclical downturn in revenue
growth in the television industry as another reason for the
flat first half earnings.
    It said it considered the result satisfactory in view of
these factors.
    Fairfax said its flagship dailies, The Sydney Morning
Herald and the Melbourne Age, boosted advertising volume, as
did the Australian Financial Review, and posted extremely
satisfactory performances. Magazines also performed strongly.
    But an 8.9 pct rise in television costs outweighed a 4.0
pct rise in revenue, it said.
    Fairfax said a fall in net interest also contributed to net
earnings because group borrowings were reduced following the
receipt of a 96.11 mln dlr capital dividend from <Australian
Associated Press Pty Ltd> (AAP) after the sale of AAP's "B"
shares in Reuters Holdings Plc <RTRS.L>.
    This accounted for the 89.32 mln dlr extraordinary profit.
    Fairfax said it is too early to predict results for the
full year. Increased borrowings after the recent 320 mln dlr
acquisition of the HSV-Seven television station in Melbourne
will hit earnings but networking with the Channel Sevens in
Sydney and Brisbane will produce some offsetting cost savings.


.I 11916
.C
earn
.W
BRITOIL PLC <BTOL.L> 1986 YR.
    LONDON, March 19 -
    Shr 6.56p vs 50.31p
    Final div 6p, making 8p vs 13p.
    Pre-tax profit 134 mln stg vs 759 mln.
    Net profit 33 mln vs 253 mln.
    Turnover 978 mln stg vs 1.80 billion.
    Extraordinary debit 50 mln vs nil.
    Operating profit 149 mln stg vs 756 mln.
    Exceptional debit on rationalisation programme 12 mln vs
nil
    Petroleum Revenue Taxes 77 mln vs 319 mln,
    U.K. Corporation tax and overseas tax 24 mln vs 187 mln,
    Note - The net effect of accounting changes in 1986 was to
reduce after tax profits by 47 mln stg. Retained earnings for
prior years were increased by 209 mln.
    Extraordinary debit of 50 mln stg related to the decision
to seek a buyer for the company's U.S. Assets.


.I 11917
.C
jobs
.W
    (EMBARGOED FOR RELEASE AT 1130 GMT THURS MARCH 19) ******UK.
FEB ADJUSTED UNEMPLOYMENT FELL 44,100 TOTAL 3.07 MLN OR 11.1
PCT - OFFICIAL

.I 11918
.C
income
.W
******UK UNIT WAGE/LABOUR COSTS ROSE 3.3 PCT IN THREE MONTHS ENDING JAN - OFFICIAL.
Blah blah blah.

.I 11919
.C
income
.W
******UK AVERAGE EARNINGS ROSE 7.6 PCT IN JANUARY, UNDERLYING RISE 7.5 PCT - OFFICIAL.
Blah blah blah.

.I 11920
.C
money-supply
.W
******U.K. FEBRUARY ADJUSTED STERLING M3 RISES 2-1/4 PCT, M0 DOWN 3/4 TO ONE PCT - OFFICIAL.
Blah blah blah.

.I 11921
.C
earn
.W
LEGAL AND GENERAL GROUP PLC YEAR 1986.
    LONDON, March 19 -
    Shr 14.58p vs 7.86p
    Div 6.5p making 9.75p, an increase of 19.4 pct
    Pretax profit 83.2 mln stg vs 31.5 mln
    Net after tax 68.6 mln stg vs 37.7 mln
    Pretax profit 83.2 mln stg vs 31.5
mln, consists of -
    Long term business 45.9 mln stg vs 43.8 mln
    U.S. Long term business 6.2 mln vs 8.9 mln
    Fund management 4.7 mln vs 6.5 mln
    Short term business 4.7 mln vs loss 29.0 mln
    Associate companies 0.9 mln vs 0.8 mln
    Shareholders other income and outgoings 0.4 mln debit vs
0.5 mln credit
    Exceptional long-term business profit 21.4 mln vs nil


.I 11922
.C
money-supply
.W
******FEB STERLING BANK LENDING UP 2.9 BILLION STG AFTER 1.75 RISE IN JAN - OFFICIAL.
Blah blah blah.

.I 11923
.C
jobs
.W
******UK FEB ADJUSTED UNEMPLOYMENT FELL 44,100 TOTAL 3.07 MLN OR 11.1 PCT - OFFICIAL.
Blah blah blah.

.I 11924
.C
trade
.W
JAPAN TO ASK CHIP MAKERS TO SLASH OUTPUT FURTHER.
    TOKYO, March 19 - The Ministry of International Trade and
Industry will ask Japanese computer microchip makers to further
slash output in the second quarter in an effort to save its
semiconductor pact with the United States, MITI officials said.
    The United States has accused Japan of reneging on the
semiconductor pact by failing to stop the flow of cut-price
Japanese chips to Asian markets. Washington has threatened to
take retaliatory action after April 1.
    The pact, agreed last year, calls on Japan to stop selling
cut-price chips in world markets and to increase its imports of
American chips to reduce some of its huge trade surplus.
    MITI, anxious to salvage the bilateral agreement, has been
pressing chip makers to limit production in the hope that will
boost domestic chip prices and reduce the incentive to export.
    Last month, the ministry asked Japanese chip makers to
reduce first quarter output by 10 pct. To meet that request,
they had to slash production by 20 pct over the final six weeks
of the first quarter.
    If that reduced production level were maintained through to
the end of June, second quarter output would come in 10 pct
below that of the first three months of the year.
    MITI officials, who declined to be identified, said the
ministry has not yet decided on the extent of the second
quarter cutback.
    One said that Japanese chip makers are losing ground in
Asia to South Korean and U.S. Competition just as markets there
are picking up.
    MITI has been criticized privately by some Japanese
semiconductor makers for what they see as heavy-handed attempts
to ensure the success of the Japan/U.S. Chip pact.


.I 11925
.C
money-supply
.W
U.K. CLEARING BANK LENDING RISES 1.6 BILLION STG.
    LONDON, March 19 - Clearing bank sterling lending to the
U.K. Private sector in February is estimated to have risen by
an underlying, seasonally-adjusted 1.6 billion stg after a 1.2
billion stg rise in January, the Banking Information Service
said.
    The unadjusted rise was 1.31 billion stg, compared with an
813 mln stg increase in January.
    The Banking Information Service said the adjusted rise of
1.6 billion stg was well above the recent monthly average of
about 1.0 billion stg.
    Of the increase, 297 mln stg was accounted for by personal
lending, which the Banking Information Service said was taken
up entirely by lending for home purchases.
    Lending for consumption fell around 17 mln stg while about
182 mln stg of credit card debt was repaid during the month.
    Lending to the manufacturing industry was up 370 mln stg,
and to leasing companies by 308 mln stg.
    The Banking Information Service said February fell within
the governmemnt tax season, so much of the lending was probably
the result of industry's need to pay its tax bills.
    Deposits by the private sector rose an unadjusted 1.1
billion stg in February and by a seasonally-adjusted 1.75
billion stg.
    Deposits from the public sector rose 185 mln stg in
February while deposits from overseas residents rose by 43 mln.


.I 11926
.C
jobs
.W
U.K. UNEMPLOYMENT FALLS IN FEBRUARY.
    LONDON, March 19 - Unemployment in the U.K. Fell a
provisional seasonally-adjusted 44,100 in February, to total
3.07 mln or 11.1 pct of the workforce, the Employment
Department said.
    In January, seasonally adjusted unemployment fell by a
revised 1,100 to 11.3 pct, it said. Initially the January
position was reported as flat.
    The unadjusted jobless total, including school leavers,
fell to 3.23 mln, or 11.7 pct, from 3.30 mln, 11.9 pct, in
January.
    February was the seventh successive month that seasonally
adjusted unemployment registered a fall.
    It was at a peak of 11.7 pct last summer.
    Lord Young, the Employment Minister, said there appeared
little doubt the monthly fall, which has been running at about
20,000, will continue.
    A Department spokesman said the sharp fall in February
reflected some compensation for the flat figure in January and
continued the downward trend seen in the past six months.
    He said the February fall was spread throughout the country
and among men and women.


.I 11927
.C
money-supply
.W
STERLING M3 UP 2-1/4 PCT IN FEBRUARY, M0 DOWN.
    LONDON, March 19 - The main measure of U.K. Broad money,
sterling M3, grew a provisional, seasonally adjusted 2-1/4 pct
in February after a rise of 1.1 pct in January, the Bank of
England said.
    The narrow measure, M0, fell a provisional adjusted 3/4 to
one pct after a 0.6 pct drop in January, the Bank said.
    Unadjusted annual growth in sterling M3 was 18-3/4 to 19
pct in the 12 months to February against 17.6 pct in January
while M0 rose four to 4-1/4 pct after a 5.2 pct rise in
January.
    Seasonally adjusted, sterling bank lending grew 2.9 billion
stg after a January rise of 1.75 billion.
    Of the unadjusted counterparts to sterling M3, bank lending
to the private sector expanded 2.6 billion stg after a 1.4
billion rise in January, the Bank said.
    The public sector borrowing requirement (PSBR) contracted
by 300 mln stg after a contraction of 3.7 billion stg in
January.
    Funding - debt sales to the non-bank private sector and
external flows to the public sector - rose by 300 mln stg after
a 1.5 billion stg rise in January. Of this, central government
debt sales to the public sector were expansionary by 400 mln
stg after a 1.3 billion expansion in January, the Bank said.
    Other unadjusted counterparts to sterling M3 expanded by
300 mln stg in February after an expansion of 1.3 billion stg
in January, the Bank said.
    Unadjusted figures showed a rise in sterling M3 by 1-3/4 to
two pct in February after a drop of 0.8 pct in January.
    On the same basis, the figures showed a drop of about 1-1/2
pct in MO in February after a sharp 6-1/2 pct fall in January.
    The Bank said it would publish full, final figures on March
30.
    The Bank said non-bank private sector holdings of public
sector debt fell by about 400 mln stg in February while
external flows to the public sector were about 100 mln stg.
    Combined with a net PSBR repayment of about 300 mln stg,
the public sector contribution to the growth in sterling M3 was
therefore about flat, the Bank said.
    It said seasonally adjusted bank lending, at about 2.9
billion stg in February, compared with an average of about 2.6
billion stg a month over the preceding six months.


.I 11928
.C
income
.W
U.K. EARNINGS RISE 7.6 PCT IN YEAR TO JANUARY.
    LONDON, March 19 - U.K. Average earnings rose a seasonally
adjusted 7.6 pct in the year to end-January after a 7.4 pct
rise in the year to December, the Department of Employment
said.
    The underlying rise was 7.5 pct after 7.75 pct in December.
    The January index, base 1980, was set at a provisional
seasonally adjusted 190.4, down from 193.4 in December.
    The underlying rise, adjusted for factors such as back-pay
and timing variations, had been steady at 7.5 pct from October
1985 to October 1986.
    Unit wage costs in U.K. Manufacturing industry rose 3.3 pct
in the three months to end January, on a year-on-year basis,
after a 3.1 pct rise in the three months to end December, the
Department of Employment said.
    In January, the unit wage rise in manufacturing industries
was 3.6 pct, unchanged from the December rise.
    The Department said the decline in the underlying rate of
rise in earnings reflected the reduced significance of bonus
payments in January compared with December.
    The actual increase reflected teacher pay settlements and
industrial action in the transport and communications sectors
in January 1987.


.I 11933
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN.
    LONDON, March 19 - The Bank of England said it revised down
its estimate of the deficit in the system today to 400 mln stg
from 450 mln.


.I 11936
.C
gold
.W
SOME 7,000 SOUTH AFRICAN MINERS RETURN TO WORK.
    JOHANNESBURG, March 19 - Some 7,000 black workers returned
to work after staging one-day strikes at two mines on Monday,
the National Union of Mineworkers and the companies that own
the mines said.
    About 6,000 miners resumed work at the Grootvlei gold mine
east of Johannesburg after protesting the transfer of
colleagues to other jobs at the same mine, owners General
Mining Union Corp Ltd <GENM.J> said.
    The union said about 1,000 mineworkers at a new coal
facility owned by Anglo American Corp of South Africa Ltd
<ANGL.J> also returned to their jobs on Tuesday.
    The workers at Anglo's Vaal Colliery south of Johannesburg
had struck to protest the alleged refusal of officials of the
South African homeland of Transkei to allow miners to attend a
funeral in the homeland, a union spokesman said.


.I 11937
.C
acq
.W
NIPPON LIFE SEEKING TIE WITH U.S. SECURITIES HOUSE.
    TOKYO, March 19 - <Nippon Life Insurance Co> is pursing a
possible link with an American securities house to expand its
overseas investment portfolio, a company spokesman said.
    But he declined to comment on rumours the company would
take a 10 pct stake in <Shearson Lehman Brothers>, an
investment banking unit of American Express Co <AXP>.
    He said the firm started to sound out several U.S.
Investment banks on capital participation about 18 months ago
and was narrowing the number of prospects, but he did not say
if it had set its sights on one firm.
    Nippon Life, Japan's largest life insurer, also plans to
set up a wholly owned investment unit, <Nissei International
America>, in New York next month and subsidiaries in Canada,
Singapore, the Cayman Islands and Jersey this year, he said.
    These moves are in line with its long-term strategy to put
more emphasis on overseas investment management as
opportunities at home are declining while the company's assets
are growing.
    The company is especially attracted by the scale and depth
of U.S. Money and credit markets and wants to establish a firm
foothold there, the spokesman added.


.I 11940
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 181 MLN STG ASSISTANCE.
    LONDON, March 19 - The Bank of England said it provided the
money market with 181 mln stg in assistance this morning.
    This compares with the Bank's revised shortage forecast of
around 400 mln stg.
    The central bank purchased bank bills outright at the new
dealing rates established yesterday.
    These comprised 65 mln stg in band one at 9-7/8 pct, 114
mln stg in band two at 9-13/16 pct and two mln stg in band
three at 9-3/4 pct.


.I 11942
.C
money-supply
.W
PHILIPPINES' LIQUIDITY RISES, LOAN DEMAND FALLS.
    MANILA, March 19 - Liquidity in the Philippines rose in
December while loan demand and short-term lending rates fell,
the Central Bank said.
    A bank official said M-3 rose 9.72 pct to a provisional
149.80 billion pesos at the end of December from a month
earlier for a year-on-year gain of 12.72 pct.
    She said short-term bank lending rates fell to an
annualised 13.88 pct at the end of December, from 14.58 pct a
month earlier and 19.82 pct at the end of December 1985.
    Poor loan demand was illustrated by a rise in commercial
bank reserves, the official said.
    The bank official said commercial bank reserves were 22.19
billion pesos at the end of December, when reserves required
were 21.59 billion.
    She said the surplus of 597 mln pesos, compared with a
deficit of 390 mln pesos a month earlier and a deficit of 1.64
billion at the end of 1985, reflected political uncertainty in
the last quarter of 1986.
    Reserve money, the total available to monetary authorities,
was a provisional 52.58 billion pesos at the end of 1986. This
was 5.19 pct up from 49.98 billion at the end of November and
41.85 pct up from 37.09 billion in December 1985.
    The bank official noted M-3, which includes M-1 money
supply, plus savings, time deposits and deposit substitutes.
Was 132.88 billion pesos at the end of December 1985.
    M-1 money supply rose a provisional 17.3 pct to 42.86
billion pesos at the end of December 1986 from 36.52 billion a
month earlier. The year-on-year rise was 19.64 pct, up from
35.83 billion at the end of December 1985.


.I 11943
.C
acq
.W
SANWA BANK ACQUIRES SMALL STAKE IN PORTUGUESE BANK.
    TOKYO, March 19 - Sanwa Bank Ltd <ANWA.T> has agreed to buy
a two pct stake in Oporto-based <Banco Portugues de Investmento
Sarl> (BPI), Portugal's largest merchant bank, a Sanwa official
said.
    Sanwa will purchase the shares from International Finance
Corp, a BPI shareholder and sister organisation of the World
Bank, for 351 mln yen, he said.
    The acquisition will be completed this month as both the
Japanese and Portuguse governments are expected to give
permission soon.  This is the first time a Japanese bank has
bought a stake in a Portuguese bank.
    Sanwa plans to increase its stake in BPI to four pct, the
ceiling for foreign shareholders, the official said.
    The bank has also agreed with <Banco Portugues do
Atlantico>, a state-owned merchant bank in Oporto, to exchange
information on customers and help accelerate Japanese
investment and technological transfers to Portugal, he said.


.I 11944
.C
interest
.W
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED.
    FRANKFURT, March 19 - The Bundesbank left credit policies
unchanged after today's regular meeting of its council, a
spokesman said in answer to enquiries.
    The West German discount rate remains at 3.0 pct, and the
Lombard emergency financing rate at 5.0 pct.


.I 11945
.C
gnp
.W
NO FRENCH REFLATION, SOURCES CLOSE TO BALLADUR SAY.
    PARIS, March 19 - There is no question of stimulating
consumption or relying on a systematic budget deficit or other
reflationary policies to boost the French economy, sources
close to finance minister Edouard Balladur said.
    Their comments followed remarks by prime minister Jacques
Chirac's spokesman Denis Baudouin, who said on Monday ministers
were agreed on the desirability of "relaunching" the economy.
    This sparked speculation the government was preparing for a
reflationary U-turn, but the finance ministry immediately ruled
out any such move.
    The sources today said the government's policy remained one
of "recovery," or sound finances and greater efficiency.
    They said that while 8.6 billion of the 30 billion franc
revenues expected for 1987 from a sweeping privatisation
program will go to providing public companies with fresh
capital, 21.4 billion francs, or two-thirds, will go toward
paying off national debt.
    Any further privatisation revenue this year above the 30
billion would be distributed between repayment of national
internal debt and public companies in similar proportions, they
added.
    The sources said it was absurd to talk of reflation when
the country's internal debt, expected to grow by 10 pct this
year from 1,300 billion francs in 1986 was growing twice as
fast as gross domestic product.
    Nominal GDP is expected to grow by roughly five pct this
year from 5,000 billion francs last year, broadly in line with
earlier forecasts. Real GDP will grow by up to 2.5 pct.
    The sources said that with France's economic targets for
1987 roughly in line with its main trading partners, the
government had no intention of pushing the economy to grow at
an artificial pace out of step with neighbouring economies.


.I 11949
.C
money-fx;income;money-supply;
.W
U.S. CREDIT MARKET OUTLOOK - SPENDING, M-1.
    NEW YORK, March 19 - Brisk increases in personal income and
consumption are to appear in February data released today, but
the bond market's recent sluggishness suggests there will be no
major price reaction unless the rises are much larger than
expected, economists said.
    Personal income is forecast to rise by 0.6 to 0.8 pct,
compared with no change in January, while consumption
expenditures are projected to increase 1.4 to 1.6 pct,
reversing most of the two pct drop recorded in January.
    M-1 money supply data for the March 9 week will also be
released. An increase of some 2.3 billion dlrs is expected.    
    Peter Greenbaum of Smith Barney, Harris Upham and Co Inc
expects a one pct rise in income, led by a strong gain in wage
and salary disbursements in February.
    Nonfarm payrolls expanded by 337,000 jobs in February, the
average workweek lengthened by 0.6 pct and hourly wages rose by
four cts, he noted in a report. Vigorous spending on durable
goods last month, especially cars, foreshadow a rise of at
least 1.5 pct in consumption, he added.
    The prospect of bearish data did not trouble the bond
market much yesterday, with the 30-year Treasury bond slipping
just 7/32 to 99-28/32 for a yield of 7.51 pct.
    Analysts said the market is still trapped in a narrow
range, desperately seeking direction.
    "Seasonally adjusted, it's already December in the bond
market," quipped Robert Brusca of Nikko Securities Co
International Inc.
    Paul Boltz of T. Rowe Price Associates Inc said the
steadiness of long bond yields around 7.5 pct, despite some
signs of a stronger economy, probably reflects expectations
that inflation will remain subdued.
    But he warned that this assumption might not be justified.
    "It took the bond market a long while to see that inflation
was not returning to double digits, and now that it has learned
that lesson, it may be a little slow to see that a four to five
pct inflation is a real possibility ahead," Boltz said in a
report.
    After trading late yesterday at 5-15/16 pct, Fed funds were
indicated by brokers to open comfortably at 5-15/16, six pct.


.I 11950
.C
oilseed;veg-oil;soybean;
.W
U.S. DELEGATION HOPES FOR VEG OILS TAX DEFEAT.
    BONN, March 19 - American soybean producers and processors
are hoping the proposed EC tax on vegetable oils and fats will
not be imposed, but say the U.S. Is prepared to retaliate if it
is introduced.
    Wayne Bennett, the American Soybean Association's first
vice president, told a news conference the U.S. Administration
would not hesitate to retaliate, but both producers and
processors were trying to solve the issue through negotiation.
    U.S. Secretary of Agriculture Richard Lyng said in a letter
to EC officials that U.S. Retaliatory measures would cover more
than agricultural products if the tax was imposed, Bennett
said.
    The ASA and National Soybean Processors Association (NSPA)
delegations will meet top West German government officials
today and tomorrow to lobby for support.
    Bennett said West Germany, Britain, the Netherlands,
Denmark and Portugal oppose the tax, but Italy and Belgium seem
to have taken a hardline view on the issue.
    "Europeans in favour of the tax say it would be to their
advantage economically, but that is not correct because we
would hit back," NSPA chairman Jack Reed said.
    This step would be very expensive for all and no one would
emerge as a winner if the tax were introduced, he said.
    Reed pointed out the U.S. Administration and the soybean
industry view the EC proposal as violating the General
Agreement on Tariffs and Trade.
    The proposed tax also violates the zero duty bindings
agreed between the EC and U.S. In 1962, he said.
    Under the zero duty bindings pact U.S. Soybeans and
products can be exported to the Community duty-free.


.I 11952
.C
acq
.W
******AMERICAN EXPRESS SAYS IT'S HOLDING TALKS ON SALE OF SHEARSON STAKE TO NIPPON LIFE.
Blah blah blah.

.I 11954
.C
acq
.W
AMERICAN EXPRESS <AXP> MAY SELL SHEARSON STAKE.
    NEW YORK, March 19 - American Express Co said it and its
Shearson Lehman Brothers Inc subsidiary have been holding talks
on the possible equity investment in Shearson Lehman by <Nippon
Life Insurance Co> of Japan.
    The company said, "The discussions have led to a general
understanding by which Nippon Life would purchase a 13 pct
equity investment in Shearson Lehman for approximately 530 mln
dlrs and American Express, Shearson Lehman and Nippon Life
would explore mutually advantageous, nonexclusive business and
investment opportunities."
    The company said a definitive agreement on the matter is
subject to a number of conditions, including approval of the
American Express board and the Japanese Ministry of Finance.
    The company said its board is scheduled to meet March 27
for its regular monthly sessions.
    American Express said it is continuing to evaluate various
courses of action of strategic importance to Shearson Lehman in
addition to the possible investment by Nippon Life.
    It said the options range from expanding Shearson's
capacity to meet international competition, to broadening
further its access to capital.
    The company also said, "All the courses of action under
study reflect the continuing integral role of Shearson Lehman
in American Express' worldwide financial services strategy."


.I 11956
.C
money-fx;rand;
.W
S.AFRICA'S FINANCIAL RAND SEEN HEADED HIGHER.
    JOHANNESBURG, March 19 - The financial rand, widely viewed
as a direct reflection of foreign investor confidence in South
Africa, appears headed above 30 U.S. Cents, dealers and bank
economists said.
    The currency has risen about 25 pct in the past three
months to its current rate of 29.50 cents, due partly to signs
of a possible power shift with the appearance of a number of
independent candidates in the whites-only election on May 6,
they added.
    It has risen about two cents this week alone.
    "Another factor is that banks in London, where the main
market is based, are going long in the currency because of a
general feeling that it will rise in the future," one economist
said.
    Dealers described 30 cents as a psychological barrier that
was expected to be broken soon after a brief consolidation
phase from recent gains.
    After reaching 30 cents, "There is a chance of appreciation
to 32 cents in the next several weeks," one dealer said.
    There was a widespread feeling that both the commercial
rand, holding stable at 48 cents, and the financial rand were
staying firm, banking sources said.
    A Barclays National Bank executive who asked not to be
identified said: "The rise of the independents appears to be
indicative of a potential shift of power in the National Party
and has created a favourable sentiment overseas."
    One dealer said growing business and investor interest from
West Germany and Switzerland were behind the financial rand's
rise.
    Economists said foreigners also were being attracted by
South Africa's long-term government bonds and "semi-gilts" or
securities in partly government-owned firms, many with yields
as high as 30 pct. They could be purchased with financial rands
with interest paid in commercial rands.
    "This has had a definite influence on the financial form of
the rand," a dealer said, adding that at present demand is
slightly in excess of supply.
    The financial rand was reintroduced in September 1985 to
help end capital flight from South Africa during a period of
severe political unrest in the country.


.I 11958
.C
acq
.W
<FI-TEK CORP> TO MAKE ACQUISITION.
    DENVER, March 19 - Fi-Tek Corp said it has signed a letter
of intent to acquire <Voice Systems and Services Inc> for an
undisclosed amount of stock.
    It said on completion of the acquisition it would change
its name to Voice Systems and Services Inc.  It said VBoice
Systems has received a 3,600,000 dlr contract to provide FLP
Communications of Dallas with voicemail systems through service
bureaus located throughout the U.S. and has also contracted to
provide voicemail systems and administration to M and S
Communications.


.I 11959
.C
acq
.W
FIRST WISCONSIN <FWB> TO MAKE ACQUISITION.
    MILWAUKEE, March 19 - First Wisconsin Corp said it has
agreed to acquire North Shore Bancorp Inc of Northbrook, Ill.,
for 6,160,000 dlrs in cash, or slightly more than twice book
value, subject to approval by North Shore shareholders and
regulatory authorities.
    The company said completion is expected in the third
quarter.


.I 11960
.C
bop
.W
ITALY'S FEBRUARY PAYMENTS BALANCE IN SURPLUS.
    ROME, March 19 - Italy's overall balance of payments showed
a surplus of 1,461 billion lire in February 1987 compared with
a deficit of 1,145 billion in January, provisional Bank of
Italy figures show.
    The February surplus compared with a deficit of 1,578
billion lire in the same month for 1986.
    For the first two months of 1987, the balance of payments
showed a surplus of 302 billion lire against a deficit of 4,622
billion in the same 1986 period.
    The Bank of Italy said the cumulative balance for the first
two months of 1987 does not match the total calculated on the
individual monthly figures because of the provisional nature of
certain data.


.I 11961
.C
earn
.W
BELVEDERE CORP <BLV> 4TH QTR LOSS.
    NEW YORK, March 19 -
    Oper shr loss 21 cts vs loss 95 cts
    Oper net loss 666,000 vs loss 2,184,000
    Avg shrs 3,181,805 vs 2,310,200
    Year
    Oper shr loss 30 cts vs loss 23 cts
    Oper net loss 823,000 vs loss 606,000
    Avg shrs 2,757,040 vs 2,614,225
    NOTE: Net excludes realized investment gains of 666,000
dlrs vs 289,000 dlrs in quarter and 2,274,000 dlrs vs 1,468,000
dlrs in year.


.I 11962
.C
reserves
.W
ITALIAN NET RESERVES RISE IN FEBRUARY.
    ROME, March 19 - Italy's net official reserves rose to
66,172 billion lire in February 1987 from a previously reported
62,174 billion in January, the Bank of Italy said.
    Gold holdings at end-February totalled 35,203 billion lire,
unchanged on January.
    Convertible currencies totalled 18,467 billion lire, up
from 14,899 billion in January, while European Currency Unit
(ECU) holdings were 10,156 billion lire against 10,133 billion.


.I 11965
.C
earn
.W
******CARTER HAWLEY HALE STORES INC 4TH QTR SHR LOSS 1.58 DLRS VS PROFIT 58 CTS.
Blah blah blah.

.I 11970
.C
acq
.W
******WASTE MANAGEMENT SAYS IT IS PREPARED TO RAISE ITS BID FOR CHEMLAWN TO 33 DLRS A SHARE.
Blah blah blah.

.I 11971
.C
earn
.W
TRANSAMERICA <TA> TO HAVE GAIN ON UNIT SALE.
    LOS ANGELES, MArch 19 - Transamerica Corp said it expects
to realize a gain of about 75 mln dlrs on the
previously-announced sale of the group life and health
operations of its Transamerican Occidental Life Insurance Co
subsidiary to Provident Life and Accident Co <PACC>.
    But it said its Transamerica Life Cos unit plans to change
to a more conservative method of amortizing deferred policy
acquisition costs, resulting in a one-time charge that will
offset most of the gain from the sale.
    Transamerica said it has now signed a definitive agreement
for the sale, which will be structured as a reinsurance
transaction involving about 400 mln dlrs of reserve
liabilities.
    It said the 75 mln dlr gain from the sale and about 125 mln
dlrs of statutory surplus that previously supported operations
of the group being sold will be used to support Transamerica
Life Cos' efforts to accelerate the growth of its remaining
businesses.  It said closing is expected by May One, subject to
regulatory approvals.


.I 11973
.C
earn
.W
AMERITRUST <AMTR> SETS TWO FOR ONE STOCK SPLIT.
    CLEVELAND, March 19 - AmeriTrust Corp said its board
declared a two-for-one stock split, and management intends to
recommend to directors an increase in the quarterly dividend to
at least 50 cts per share presplit from the current 44 cts.
    The company said shareholders at the May 14 annual meeting
will be asked to approve an increase in authorized common
shares to 100 mln from 25 mln, as well as a limitation of
directors' liability and the establishment of a classified
board.
    The split is subject to approval of the increase in
authorized common shares, it said.


.I 11974
.C
earn
.W
CARTER HAWLEY HALE STORES INC <CHH> 4TH QTR LOSS.
    LOS ANGELES, March 19 - ended Jan 31
    Shr loss 1.58 dlrs vs profit 58 cts
    Net loss 24.2 mln vs profit 18.9 mln
    Sales 1.34 billion vs 1.32 billion
    Avg shrs 20.0 mln vs 19.8 mln
    Year
    Shr loss 1.27 dlrs vs profit 92 cts
    Net profit 4.2 mln vs profit 48.0 mln
    Sales 4.09 billion vs 3.98 billion
    Avg shrs 20.2 mln vs 19.6 mln
    NOTES: Share results after provision for preferred
dividends
    Per share profits from operations were 1.46 dlrs vs 71 cts
in the quarter and 2.44 dlrs vs 1.05 dlrs in year. On a fully
diluted basis this was 1.11 dlrs vs 67 cts and 2.42 dlrs vs
1.58 dlrs, respectively, based on 33.0 mln vs 32.3 mln shares
outstanding in quarter and 32.8 mln vs 32.1 mln in year
    1986 results in both periods include pre-tax losses pf 2.2
mln dlr on sale of John Wanamaker and 25.0 mln dlrs related to
recapitalization, for a combined primary per share charge of
1.58 dlrs in quarter and 1.57 dlrs in year.
    1986 results also include an after-tax charge 29.3 mln
dlrs, equal to 1.46 dlrs a share in quarter and 1.44 dlrs in
year, for premium on early retirement of debt
    1985 net in both periods includes pre-tax loss of 2.4 mln
dlrs, equal to 13 cts a share, on sale of Holt Renfrew
    Results include LIFO charge 1.7 mln dlrs vs credit 4.4 mln
dlrs in quarter and credit 1.9 mln dlrs vs credit 6.4 mln dlrs
in year


.I 11975
.C
wheat;grain;corn;
.W
OECD FARM SUBSIDIES STUDY RESULTS DETAILED.
    By Greg McCune, Reuters
    WASHINGTON, March 19 - The results of a controversial study
of farm subsidies conducted by the Paris-based Organisation for
Economic Cooperation and Development, OECD, show Japan has the
highest agriculture subsidies in the world, and that dairy
farmers benefit more than any other commodity producers from
subsidies.
    Results of the study, which has not been released by OECD
because of objections from some countries, were provided to
Reuters by officials of several countries on condition they not
be identified.
    The OECD study calculates the level of farm subsidies for
the years 1979-81 using a new measure called the producer
subsidy equivalent, PSE.
    The study shows that on dairy products Japan's PSE, or the
amount of aid to farmers expressed as a percentage, averaged
83.3 pct over 1979-81, with the European Community at 68.8 pct
and the United States 48.2 pct.
    For wheat Japan's PSE averaged 95.8 pct, the EC 28.1 and
the U.S. 17.2. Japan's rice PSE was 68.8 pct compared to the EC
13.6 and the U.S. 5.4 pct, the OECD calculations show.
    In coarse grains, Japan's subsidies reached 107.1 pct
compared with 27.9 pct for the EC and 13.1 pct for the U.S.
Japan's beef subsidy was 54.9 pct versus 52.7 pct for the EC
and 9.5 pct for the U.S., OECD concluded.
    For sugar, Japan's PSE was 48.4 pct versus 27.9 pct in the
EC and 13.1 pct for the U.S., the study shows.
    The OECD calculated farm subsidies for other industrial
countries such as Canada, Australia and New Zealand but in most
cases the results were much lower than for the U.S., EC and
Japan, the sources said.
    Subsidies in Argentina and Brazil, two major developing
country producers of commodities, were not included in the OECD
work.
    Officials said they hope to persuade reluctant countries to
release the study soon, perhaps coinciding with the OECD
ministerial meeting in Paris during May.
    Some officials hope the OECD results will be used as a 
basis for negotiations during the Uruguay round of global trade
talks now underway in Geneva.
    British Agriculture Minister Michael Jopling during a visit
to Washington this week endorsed the OECD work as a starting
point for the Uruguay round negotiations on agriculture.
    He said the PSE calculations provide a tool to negotiate
down domestic farm support levels, which are a major cause of
the present crisis in world agriculture.
    However, the OECD study results are controversial because
they highlight the levels of assistance to farmers, officials
familiar with the study said.
    The U.S. Agriculture Department's Economic Research Service
recently published a study of farm subsidies in an attempt to
verify the OECD results and update them to 1982-84.
    In some cases the results were substantially different than
the OECD's, in part because farm policies in both the U.S. and
elsewhere had changed markedly by 1982-84 from the OECD base
period of 1979-81, U.S. officials said.
    For example, the USDA study found the United States
subsidies to corn producers were higher in 1982-84, at 25 to 49
pct, than in the EC, at zero to nine pct.
    French Maize Producers Association president Marcel Cazale,
citing the result of the USDA calculation for corn, told
reporters last week that the United States subsidizes its
farmers more than the EC.
    However, the sources said EC corn subsidies are probably
higher than the U.S. now because of increases since 1984.
    Officials of several countries have been asked to
contribute data to OECD so that the study can be updated to
1985 subsidy levels, a much more relevant measure of the
current world farm situation.
    The updated calculations, which may take several months to
complete, are expected to show substantial increases in U.S.
subsidy levels for sugar because the U.S. imposed restrictive
import quotas in 1982 as aid to the domestic industry.
    U.S. subsidy levels also are increased by the 1985 farm
bill, which sharply boosted government deficiency payments to
grain farmers and applied a marketing loan for rice, officials
added.


.I 11976
.C
earn
.W
FIRST AMERICAN FINANCIAL<FAMR> IN SPECIAL PAYOUT.
    SANTA ANA, Calif., March 19 - First American Financial Corp
said its board declared a special dividend of 20 cts per share
and the regular 25 ct quarterly dividend, both payable April 15
to holders of record March 31.


.I 11977
.C
earn
.W
CARIBOU ENERGY REVERSE SPLIT APPROVED.
    DALLAS, March 19 - <Caribou Energy Inc> said shareholders
have approved a one-for-100 reverse split that will take effect
by tomorrow and the company has changed its name to <Texas
Petroleum Corp>.


.I 11978
.C
acq
.W
NATIONAL CAPITAL <NCETS> TO MAKE SALE.
    SAN FRANCISCO, March 19 - National Capital Real Estate
Trust said it has entered into a definitive agreement to sell
its Irvine Commercial Center in Irvine, Calif., to Shuwa Corp
of California for 10.85 mln dlrs.
    It said the buyer has pl;aced 250,000 dlrs into an escrow
account as a nonrefundable deposit.
    The trust said existing debt secured by the property of
about 6,700,000 dlrs in due on completion of the transaction,
which is expected in early April.


.I 11979
.C
earn
.W
SWISSAIR REPORTS LOWER PROFIT AND DIVIDEND.
    ZURICH, March 19 - Swissair <SWSZ.Z> reported a 5.8 pct
drop in 1986 net profit to 64.5 mln Swiss francs and said that,
in line with its new, flexible dividend policy, it would cut
its payout to 33 francs per share from 38.
    President Robert Staubli told a news conference that the
first two months of this year gave hope that 1987 profit would
at least equal last year's figure, but said much depended on
outside factors such as fuel prices and the exchange rate.
    The fall was largely due to a 60 mln franc loss on
Swissair's core flying business last year, against a profit of
27 mln francs the previous year, he said.
    The net profit figure was reached after receipt of some 68
mln francs from plane sales, compared with a mere 17 mln francs
in 1985. Finance Head Martin Juenger said he expected around 20
mln francs from sales this year, although said much depended on
the speed with which it decided to sell its DC-10s.
    Gross profit for 1986 reached 340.5 mln francs, with 276
mln francs subtracted for ordinary depreciation.
    Gross profits for the previous year had been 382.5 mln
francs, with 314 mln subtracted for depreciation, including 45
mln francs supplementary depreciation.
    Staubli said the 1986 result, well below predictions made
this time last year, suffered considerably due to exchange rate
fluctuations, in particular the strength of the Swiss franc.
    While the negative effects on revenue of the sharp drop in
the dollar were partially compensated for by cheaper fuel
prices, there was no such offset for the strength of the franc
against other European currencies.
    "Income and profit generated by services to these countries
shrank by a very substantial margin," he said. "Exchange rate
trends therefore hit us much more severely than most other
airlines."


.I 11980
.C
crude
.W
CANADIAN ROXY IN NEW ALBERTA OIL DISCOVERY.
    CALGARY, Alberta, March 19 - <Canadian Roxy Petroleum Ltd>
said a new oil discovery in the Peerless Lake area of
north-central Alberta is capable of flowing at over 1,000
barrels of oil a day from a lower zone and more than 1,500
barrels a day from a separate upper zone.
    Canadian Roxy has a 35 pct interest in the five-year
royalty free well, known as the Canadian Roxy et Al Trout
A14-8-89-3 W5M. Texaco Canada Inc holds 25 pct, MLC Oil and Gas
Ltd 15 pct, Northstar Energy Corp 13.5 pct and Tricentrol Oils
Ltd 11.5 pct.
    Canadian Roxy said drilling has started on a follow-up
exploratory well about one mile northwest of the discovery
well.
    The company said it holds a net 6,500 acres in the vicinity
of the discovery and a seismic program is underway to evaluate
further drilling opportunities.


.I 11981
.C
acq
.W
WASTE MANAGEMENT<WMX> TO RAISE CHEMLAWN<CHEM>BID.
    OAK BROOK, ILL., March 19 - Waste Management Inc said it
sent a letter to the ChemLawn Corp board, saying it is prepared
to increase its bid for ChemLawn to 33 dlrs a share,
from 27 dlrs, if ChemLawn promptly negotiates and executes a
simple two-step merger agreement containing only essential
covenants and conditions.
    Upon such an agreement, Waste Management said, it would
amend its 27 dlrs a share cash tender offer.


.I 11983
.C
jobs
.W
U.S. FIRST TIME JOBLESS CLAIMS FELL IN WEEK.
    WASHINGTON, March 19 - New applications for unemployment
insurance benefits fell to a seasonally adjusted 340,000 in the
week ended March 7 from 373,000 in the prior week, the Labor
Department said.
    The number of people actually receiving benefits under
regular state programs totaled 2,507,000 in the week ended Feb
28, the latest period for which that figure was available.
    That was up from 2,477,000 the previous week.
     


.I 11984
.C
cocoa
.W
COCOA DELEGATES OPTIMISTIC ON BUFFER STOCK RULES.
    By Lisa Vaughan, Reuters
    LONDON, March 19 - Hopes mounted for an agreement on cocoa
buffer stock rules at an International Cocoa Organization,
ICCO, council meeting which opened here today, delegates said.
    Both producer and consumer ICCO members said after the
opening session that prospects for an agreement on the cocoa
market support mechanism were improving.
    "The chances are very good as of now of getting buffer stock
rules by the end of next week," Ghanaian delegate and producer
spokesman Mama Mohammed told journalists.
    Consumer spokesman Peter Baron called the tone of the
negotiations "optimistic and realistic."
    The ICCO council failed to agree on buffer stock rules when
a new International Cocoa Agreement came into force in January,
with deep differences of opinion precluding serious discussions
on the matter at that time. The existing buffer stock of about
100,000 tonnes of cocoa was frozen, with a funds balance of 250
mln dlrs.
    The ICCO made buffer stock rules negotiations a priority at
this semi-annual council meeting in order to stop the slide in
world cocoa prices.
    Consumers and producers agreed yesterday on the principles
as a basis for negotiations.
    The council broke for lunch, and reconvenes at 1500 hrs. A
working group which has been meeting since Monday will tackle
the buffer stock rules issue again at 1600 hrs, when ICCO
executive director Kobena Erbynn presents a fleshed-out version
of a draft proposal he prepared earlier this week, delegates
said.
    Mohammed said delegates will have a much clearer indication
of prospects for an accord after details of the rules are
elaborated by Erbynn, and after producers and consumers meet
separately later today to examine the scheme.
    The draft proposal included three principles: a limit to
non- member cocoa comprising the buffer stock, an offer system
for buying buffer stock cocoa, and price differentials to be
paid for various cocoas making up the buffer stock, delegates
said.
    During the morning council session, the Ivory Coast
delegation gave "an open minded statement" that it is willing to
work out a buffer stock rules solution which could come into
effect as soon as possible, Baron said.
    Ivorian Agriculture Minister Denis Bra Kanon, chairman of
the ICCO council, was now expected to arrive in London Monday
to attend the talks, Baron said. Vice chairman Sir Denis Henry
of Grenada chaired the meeting in his place.
    Soviet and East German delegates did not attend the council
session because of a conflicting International Sugar
Organization meeting today, but could arrive this afternoon,
delegates said.


.I 11985
.C
earn
.W
STUARTS DEPARTMENT STORES <STUS> 4TH QTR NET.
    HOPKINTON, Mass., March 19 - Ended Jan 31
    Shr one ct vs 31 cts
    Net 29,000 vs 1,350,000
    Revs 43.7 mln vs 32.4 mln
    Year
    Shr 29 cts vs 62 cts
    Net 1,251,000 vs 2,520,000
    Revs 129.9 mln vs 96.1 mln
    NOTE: Full name Stuarts Department Stores Inc.


.I 11986
.C
earn
.W
IOMEGA CORP <IOMG> EXPECTS QTR AND YEAR LOSSES.
    ROY, Utah, March 19 - Iomega Corp announced it expected
revenues for the first quarter of 1987 to be significantly
lower than planned and that it anticipated a loss for the
quarter.
    In its annual report to be mailed to stockholders tomorrow,
the company will announce its first quarter loss will be in
excess of 10 mln dlrs primarily as a result of lower than
anticipated revenues.
    The company said it recored net income of 4,572,000 dlrs,
or 30 cts per share, for its first quarter fiscal 1986, on
revenues of 35.0 mln.
    The company said it lowered its revenue plan for the
balance of 1987 and also expects to record a loss for the
entire 1987 year.
    Iomega said the first quarter loss will place the company
in default under certain covenants in its bank line of credit
unless these covenants are modified.
    The company is currently exploring alternatives for raising
additional funds through a debt for equity financing.
   


.I 11987
.C
earn
.W
3COM CORP <COMS> 3RD QTR FEB 28 NET.
    SANTA CLARA, Calif., March 19 -
    Shr 22 cts vs 13 cts
    Net 3,166,000 vs 1,780,000
    Sales 30.4 mln vs 16.9 mln
    Avg shrs 14.6 mln vs 14.0 mln
    Nine mths
    Shr 56 cts vs 33 cts
    Net 7,961,000 vs 4,562,000
    Sales 78.8 mln vs 44.7 mln
    Avg shrs 14.3 mln vs 13.9 mln


.I 11988
.C
earn
.W
PORSCHE HALF-YEAR EARNINGS CALLED SATISFACTORY.
    STUTTGART, March 19 - Dr. Ing. H.C.F. Porsche AG <PSHG.F>
said earnings in first half year 1986/87 were "satisfactory"
despite burdens caused by the dollar's weakness against the
mark and stagnating domestic demand.
    In its semi-annual shareholders' report, Porsche said first
half turnover fell six pct to 1.71 billion marks from 1.83
billion in the same period of 1985/86.
    However, earnings were satisfactory, it said, without
giving absolute figures.
    Domestic turnover fell 26 pct to 283 mln marks from 380
mln.
    Foreign turnover dipped to 1.43 billion marks from 1.45
billion in the first half of last year, although the export
quota rose to 83 pct from 79 pct.
    The car sector accounted for 1.51 billion marks of
turnover, against 1.63 billion the year earlier, it said.
    Production dropped five pct to 25,876 cars from 27,381.
Manufacture of the 911 and 928 models rose six pct to 11,122
from 10,533 units but production of 924 and 944 models was cut
by 12 pct to 14,754 units from 16,848 and would be cut further,
the report said.
    Car sales fell four pct to 25.269 units from 26,414 in the
comparable half year, the report said. U.S. Demand continued
for all models but demand fell in other markets.
    Domestic sales were 39 pct down at 3,267 units from 5,397,
while sales abroad rose five pct to 22,002 from 21,017. Share
of exports in sales rose to 87 pct from 80 pct.
    Investments were reduced to 108 mln marks from 125 mln.
    Earnings were hit by lower sales and by the lower value of
the dollar and currencies in other important markets.
    Nevertheless, sales and turnover would finish the July 11
year at a "high level," Porsche said.


.I 11989
.C
earn
.W
PROGRESSIVE BANK INC <PSBK> .
    PAWLING, N.Y., March 19 -
    Qtly div seven cts vs seven cts in prior qtr
    Payable April 15
    Record March 31


.I 11990
.C
earn
.W
GERIATRIC AND MEDICAL CENTERS INC <GEMC> PAYOUT.
    PHILADELPHIA, March 19 -
    Qtly div two cts vs two cts prior
    Pay April 24
    Record April Three


.I 11991
.C
earn
.W
CONVENIENT FOOD MART INC <CFMI> 4TH QTR NET.
    ROSEMONT, ILL., March 19 - Period ended Dec 28
    Shr 42 cts vs 35 cts
    Net 941,000 vs 786,000
    Revs 12,798,000 vs 2,269,000
    Year
    Shr 97 cts vs 83 cts
    Net 2,211,000 vs 1,841,000
    Revs 19,027,000 vs 6,474,000
    NOTE: 1985 period ended December 29
    Share results adjusted for five-for-four stock split on
April 28, 1986 and 10 pct stock dividend issued Dec 10, 1986


.I 11992
.C
earn
.W
MEDCHEM PRODUCTS INC <MDCH> 2ND QTR FEB 28 NET.
    ACTON, Mass., March 19 -
    Shr 21 cts vs 21 cts
    Net 542,119 vs 520,668
    Sales 2,035,759 vs 1,804,350
    1st half
    Shr 38 cts vs 42 cts
    Net 956,228 vs 1,038,300
    Sales 3,748,357 vs 3,482,066


.I 11993
.C
money-fx
.W
U.K. MONEY MARKET GIVEN FURTHER 191 MLN STG HELP.
    LONDON, March 19 - The Bank of England said it gave the
money market a further 191 mln stg assistance in the afternoon
session. This takes the Bank's total help so far today to 372
mln stg and compares with its upwards revised estimate of the
shortage in the system of around 400 mln stg.
    The central bank bought bank bills outright comprising 15
mln stg in band one at 9-7/8 pct and 176 mln stg in band two at
9-13/16 pct.


.I 11996
.C
earn
.W
<PAGURIAN CORP LTD> YEAR NET.
    TORONTO, March 19 -
    Shr 1.64 dlrs vs 90 cts
    Net 64.9 mln vs 28.8 mln
    Revs 73 mln vs 35 mln
    NOTE: Shares outstanding 39.5 mln vs 32.1 mln. Avg shrs not
given.
    Company recently raised equity and voting interests in
<Hees International Corp> to 13.4 pct and 16.1 pct,
respectively.


.I 11998
.C
earn
.W
UNILEVER PLC ADJUSTS DIVIDEND.
    LONDON, March 19 - Unilever Plc <UN.AS> said a reduction in
U.K. Advance Corporation Tax, (ACT) has prompted the company to
adjust its 1986 final dividend to 36.17p per share from the
originally declared 35.18p.
    Unilever's 1985 final dividend amounted 27.05p
    The adjustment stemmed from the dividend equalisation
agreement between the British company and its Dutch partner
Unilever NV. ACT in respect of any dividend paid by Unilever
Plc has to be treated as part of the dividend.
    Unilever NV final dividend remains 10.67 guilders as
declared with the 1986 results on March 3.


.I 12000
.C
trade
.W
JORDAN, SUDAN SIGN 100 MLN DLR BARTER TRADE PACT.
    AMMAN, March 19 - Jordan and Sudan signed a barter trade
agreement under which they will exchange 100 mln dlrs' worth of
goods a year, Sudanese officials said.
    They said Sudan will export corn, sesame, peanuts, spices
and cow hides, while Jordan will export cement, tomato puree,
chemicals and pharmaceuticals.


.I 12002
.C
gold
.W
NEW MARKET EMERGES IN WARRANTS FOR GOLD.
    By Donald Nordberg, Reuters
    ZURICH, March 19 - A new market has emerged in warrants to
buy gold, a vehicle which bankers say brings some of the play
of commodity options into the field of securities.
    Over the past three weeks, Swiss offices of American banks
have launched a total of four issues of warrants with varying
conditions, drawing on renewed inflationary worries and the
recovery of the gold price last year.
    And Credit Suisse and Credit Suisse-First Boston each
issued Swiss franc bonds with warrants for gold which have a
similar character, though they are aimed at a less professional
market.
    The market is still small. Taken together, the four
American-led warrant issues raised only about 50 mln Swiss
francs.
    But banks believe the vehicle meets a need of investors and
predicted a lively future.
    Andrew Barrett of Citicorp Investment Bank (Switzerland) AG
said: "The warrants give smaller investors a chance to have a
long-term investment in gold with limited risk."
    Citicorp in Zurich launched the first of these warrants on
February 27, following it up with a second issue less than a
week later. The issuer in both cases was Citibank NA.
    The idea found some quick copies. Goldman Sachs in Zurich
organized and co-led an issue for the Swiss branch of Banque
Indosuez on March 9 and last night Morgan Guaranty
(Switzerland) AG did another for Morgan Guaranty Trust Co of
New York.
    The four issues now offer investors striking prices for
gold ranging from the Indosuez issue at 410 dlrs an ounce, the
same price as the underlying commodity, to a 430 dlr level on
the first one for Citibank.
    The premiums range from 22 pct to 36 pct and maturities
from 18 months to four years and three months, in all cases
longer than gold futures and options on U.S. Markets.
    The bankers traced the inspiration for the market back to
the February report of U.S. Consumer prices for January, when a
jump of 0.7 pct raised again the threat of inflation.
    "Many people are worried about inflation again," said Mats
Joensson of Goldman Sachs. "Money supply in Germany and the
United States has grown very strongly in the last year and
people want to take a ride on gold."
    The gold market, having seen strong gains in 1986, has
languished just above 400 dlrs an ounce over the past few
weeks. But the banks saw in warrants the vehicle for a more
highly leveraged play where the downside risk was limited.
    Barrett said it was natural that the market developed in
Switzerland. "People here understand gold, and they understand
warrants," he said.
    Citicorp (Switzerland) pioneered warrants with a series of
equity-linked covered issues based on Japanese company shares
over the past two years, and last autumn, Swiss banks launched
covered warrants in Swiss registered shares in a bid to give
foreign investors a chance to play in a market otherwise closed
to all but Swiss citizens, and to play it with higher leverage.
    But after a quick flurry of issues, that market dried up
when Swiss shares prices fell from their January peaks.
    The issues are being marketed not on the basis of simple
premiums, but on implicit volatility models devised to provide
scientific comparisons between titles in the options market.
    Martin Bachem of Morgan Guaranty said his bank's issue was
competitive despite its relatively high premium. The issue, for
five ounces at 425 dlrs, was priced at 955 Swiss francs, making
a premium over the spot gold price of nearly 36 pct.
    Using a Black Sholes options model, he said the issue's
long, 4.3-year maturity meant the warrants needed an implicit
volatility of gold of only 24.5 pct for the option to pay off,
which he claimed was lower than the other issues.
    But Barrett said the Black Sholes variant Citicorp used
pointed to a higher volatily for the Morgan issue and
emphasized that the models were at best an inexact science.
    And each bank, using its own model, put the implicit
volatility needed for its own issue at close to 25 pct.
    Whatever the calculation, the issues have received a warm
welcome from investors.
    Joensson of Goldman Sachs said there was a lot of demand,
even among small investors, who were buying 15 or 20 warrants
apiece. "The most sophisticated ones wouldn't buy these because
the premiums are too high," he said.


.I 12003
.C
acq
.W
METRO FUNDING SHAREHOLDERS APPROVE MERGER.
    NEW YORK, March 19 - <Metro Funding Corp> said its
shareholders approved its merger into <Maxcom Corp> and its
change of incorporation from Nevada to Delaware.
    Metro Funding also said its subsidiary, Comet Corp, will be
renamed Maxcom USA.
    The company also reported shareholders approved the
authorization of 500,000 shares of common stock to be set aside
for an incentive stock option plan.


.I 12005
.C
earn
.W
BLOCKBUSTER ENTERTAINMENT CORP <BBEC> YEAR LOSS.
    DALLAS, March 19 -
    Oper shr loss 1.25 dlrs vs loss 44 cts
    Oper net loss 2,915,000 vs loss 951,000
    Revs 8,131,000 vs 119,000
    NOTE: 1985 net excludes 625,000 dlr gain from discontinued
operations.
    Net includes tax credits of 860,000 dlrs vs 285,000 dlrs.


.I 12006
.C
acq
.W
TELECOM <TELE> SAYS SALE CLOSING DELAYED.
    BOCA RATON, Fla., March 19 - Telecom Plus International Inc
said the closing of the sale of its 65 pct interest in Tel Plus
Communications Inc to <Siemens AG> has been delayed.
    The company said it will be continuing its talks with
Siemens and based on current circumstances believes the
transaction could close next week.
    Closing had been scheduled for March 16.


.I 12009
.C
earn
.W
THE HOME DEPOT INC <HD> 4TH QTR FEB ONE NET.
    ATLANTA, March 19 -
    Shr 27 cts vs 10 cts
    Net 7,684,000 vs 2,587,000
    Revs 273.9 mln vs 203.7 mln
    Year
    Shr 90 cts vs 33 cts
    Net 23.9 mln vs 8,219,000
    Revs 1.01 billion vs 700.7 mln


.I 12010
.C
crude
.W
U.S. ENERGY CHIEF SEES PROMISE IN OIL-TAX CHANGE.
    WASHINGTON, March 19 - Energy Secretary John Herrington
said his proposed option to raise the oil depletion allowance
to 27.5 pct was probably the most economically promising way to
spur domestic production.
    The White House has said it would consider the option
although it was generally opposed to any revisions in the new
tax code.
    Herrington told a meeting of the Mid-Continent Oil and Gas
Association that the higher depletion allowance on new oil and
enhanced oil recovery would cost taxpayers about 200 mln dlrs a
year.
    The option was one of many contained in a report on oil and
the national security the Energy Department sent to the White
House on Tuesday.
    Herrington said of the increased depletion allowance
option: "that is one that could significantly increase
production at a very low cost to the American taxpayer."
    He again rejected an oil import fee as far too costly to
the overall U.S. economy.


.I 12011
.C
income
.W
******U.S. PERSONAL INCOME ROSE 0.9 PCT IN FEBRUARY, SPENDING UP 1.7 PCT.
Blah blah blah.

.I 12012
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 40 MLN STG LATE ASSISTANCE.
    LONDON, March 19 - The bank of England said it provided the
money market with late assistance of around 40 mln stg. This
brings the Bank's total help today to some 412 mln stg and
compares with its forecast of a shortage in the sytem of around
400 mln stg.


.I 12013
.C
income
.W
U.S. PERSONAL INCOME ROSE 0.9 PCT IN FEBRUARY.
    WASHINGTON, March 19 - U.S. personal income rose 0.9 pct,
or 32.4 billion dlrs, in February to a seasonally adjusted
annual rate of 3,581.3 billion dlrs, the Commerce Department
said.
    The increase followed a revised 0.2 pct rise in personal
income during January. Earlier, the department estimated
January personal income was unchanged.
    The February incomes rise was the largest monthly increase
since a 1.2 pct rise in April 1986, the department said. It
attributed last month's rise to several factors, including
subsidy payments to farmers and government pay raises.
    The department said personal consumption expenditures were
up during February by 1.7 pct or 49.1 billion dlrs to 2,855.9
billion dlrs after falling by 58.4 billion dlrs or two pct in
January.
    Purchases of durable goods were up 24.8 billion dlrs last
month after decreasing by 69.7 billion dlrs in January with
sales of motor vehicles accounting for most of the February
increase and the January decline, the department said.
    Purchases of nondurables rose 10.7 billion dlrs in February
after a 300 mln dlr increase in January.
    The Commerce Department said wage and salary incomes were
up 15.6 billion dlrs in February after an 8.6 billion dlr rise
in January.
    Manufacturing payrolls increased by 2.4 billion dlrs last
month after rising 1.9 billion dlrs in February with the gains
widespread through durable and nondurable industries, the
department said.
    Farmers' incomes increased by 12.2 billion dlrs in February
after declining by 8.7 billion dlrs in January. Both last
month's increase and January's fall in farm incomes was because
of government subsidy payments, the department said.
    Personal tax and nontax payments fell 5.5 billion dlrs in
February following a 19.5 billion dlrs January drop. The 
declines were a result of the Tax Reform Act of 1986.
    Federal withheld income taxes were up in February from a
month earlier but that was offset by declines in federal
nonwithheld taxes and lower state and local income taxes.
    Disposable personal income in February after taxes was up
1.2 pct or 37.8 billion dlrs to 3,063.4 billion dlrs after
rising 25.8 billion dlrs in January.
    The personal savings rate eased to 3.6 pct in February from
four pct in January, the department said.


.I 12014
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 19 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 295,000 to 305,000 head versus
307,000 week ago and 311,000 a year ago.
    Cattle slaughter is guesstimated at about 124,000 to
128,000 head versus 127,000 week ago and 126,000 a year ago.


.I 12015
.C
earn
.W
DEUTSCHE BABCOCK SEES HIGHER 1986/87 PROFITS.
    OBERHAUSEN, West Germany, March 19 - Deutsche Babcock AG
<DBCG.F> expects profits to rise in the current financial year
ending September 9 although the earnings level is still
unsatisfactory, managing board chairman Helmut Wiehn said.
    He told a news conference that business during the year had
weakened somewhat but was still generally positive.
    Sales during the first five months to February was 1.26
billion marks, 46.7 pct down from the same 1985/86 period.
However, he expected turnover for the year to be approximately
unchanged from the previous year's 5.14 billion marks when
current orders from major projects are booked.
    Wiehn said incoming orders in the first five months to end-
February totalled 2.50 billion marks compared with 2.04 billion
for the same period in 1985/86. They included a 45.8 pct
increase in domestic orders to 1.57 billion marks.
    Orders in hand for the five months were 16.7 pct higher at
8.64 billion marks.
    Wiehn added that Babcock was still aiming for a three pct
yield on turnover. In the year to September 1986 group profits
totalled 39 mln marks on sales of 5.14 billion against the
previous year's 32 mln on 5.11 billion marks.
    Parent company turnover was unchanged at 25.6 mln marks.
    Wiehn said Babcock's liquidity had clearly improved in the
current business year, with financial reserves in the first
five months rising by 237 mln marks to 831 mln after increasing
by 408 mln marks to 594 mln in 1985/86.
    He said pre-tax earnings per share for 1985/86, according
to the DVFA method, were 26.95 marks from 21.40 marks and
earnings after tax rose to 10 marks from 8.10.
    The company earlier said dividend will be unchanged at
three marks for ordinary shares and 3.50 marks for preference
shares.


.I 12016
.C
ship;grain;
.W
SOVIET TIMECHARTERING BOOSTS GRAIN FREIGHT RATES.
    By Colin Brinsden, Reuters.
    LONDON, March 19 - Current interest by Soviet charterers in
taking Panamax vessels on timecharter, mainly from the U.S. To
carry grain, is seen as the chief factor behind the recent
surge in values on the Baltic International Freight Futures
Exchange (BIFFEX), dealers said.
    Futures soared through the 1,000 points barrier today for
the first time in the spot position since the market opened in
May 1985. However, the market tends to be nervous, with values
some 100 points above the Baltic Freight Index, which is
calculated on spot physical rates.
    No specific figure has been put for Soviet bookings but
they have been sufficient to drain Panamax tonnage (about
50,000 to 65,000 tonnes dw) from the U.S. Gulf which would
normally operate on the trip to Japan, dealers said.
    "It appears that the Chernobyl disaster had a worse effect
on its (the Soviet) grain harvest than reported," one said.
    Freight rates on the Gulf/Japan grain route have
subsequently been the main beneficiary of current chartering
conditions, with very few, if any, Panamax sized ships left for
the remainder of this month in the Gulf. Rates have risen
steadily for vessels loading next month.
    Dealers said there is even talk that owners are considering
taking older vessels out of lay-up to meet current demand.
    Sentiment has also been aided by suggestions that Chinese
operators may be in the market for similar timecharter business
later in the year, they said.
    They anticipate this would appear around June and it has
prompted keen demand in the July BIFFEX contract, despite it
normally being a slack time in the shipping year.
    Market sentiment has fluctuated in recent weeks. Rates
turned down as an earlier rise in bunker prices, which had
supported the market at the start of the year, faltered but
then recovered on the reported Soviet interest.


.I 12017
.C
coffee
.W
DROUGHT MAY REDUCE ZIMBABWE COFFEE OUTPUT -GROWERS.
    HARARE, March 19 - Zimbabwe's projected coffee output of
13,000 tonnes for 1987/88 could be reduced by drought, growers
said.
    The main coffee growing areas in eastern Zimbabwe have
received little rain since April 1986 and the Coffee Growers'
Association has begun a survey to assess the effects of the
drought, a spokesman said.
    Zimbabwe exported 11,000 tonnes of coffee in 1986, mainly
to West Germany, Britain, Japan, the Netherlands, Switzerland
and the United States.


.I 12019
.C
earn
.W
******PILLSBURY CO 3RD QTR SHR 56 CTS VS 63 CTS.
Blah blah blah.

.I 12020
.C
earn
.W
CONTROL RESOURCE <CRIX> SEES LOWER EARNINGS.
     MICHIGAN CITY, Ind., March 19 - Control Resource
Industries Inc said the company estimates 1986 earnings to be
between 800,000 and 900,000 dlrs, or 22 to 25 cts per share,
compared with 852,000 dlrs, or 33 cts per share, during 1985.
    The company said preliminary estimates of 1986 revenues is
24.5 mln dlrs, compared with 7,900,000 for 1985.
    The estimated 1986 results are based on 3,207,000 shares
outstanding, compared to 2,566,000 shares outstanding for 1985.
    R. Steven Lutterbach, chairman, said net income for 1986
was adversely affected primarily due to lower operating margins
at the company's Western Environmental subsidiary, and to an
increase in bad debt reserves.
    Western Environmental was acquired in March 1986.
Lutterbach explained the company has taken steps to improve
financial and accounting controls, primarily at Western, which
were not adequate at the time of acquisition.
    He noted the final results for the fourth quarter will
depend on the allocation of increased costs between the second
and fourth quarters.
    Lutterbach said it is possible second quarter results will
be restated, though final net income for the year will remain
in the estimated range.
    He added preliminary indications for first quarter 1987
revenues were favorable.


.I 12022
.C
acq
.W
MEDIQ <MED> IN AMERICAN MEDICAL <AMI> UNIT BUY.
    PENNSAUKEN, N.J., March 19 - MEDIQ Inc said its MEDIQ
Diagnostic Imaging Partners - I LP has signed a letter of
intent to acquire substantially all the assets of American
Medical International Inc's AMI Diagnostic Services Inc
subsidiary for undisclosed terms.
    The company said AMI Diagnostic operates seven magnetic
resonance and mutli-modality diagnostic imaging centers. MEDIQ
Diagnostic is a limited partnership of which MEDIQ is general
partner.


.I 12023
.C
acq
.W
CYCLOPS <CYL>BOARD RESTRUCTURED TO INCLUDE DIXON.
    PITTSBURGH, Pa., March 19 - Cyclops Corp said its board has
been restructured under the terms of the company's merger
agreement with <Dixons Group plc> following the British
company's acquisition of 54 pct of Cyclops' stock.
    The company said its board is now composed of three Cyclops
executives -- Chairman W.H. Knoell, President James F. Will and
Senior Vice President WIlliam D. Dickey -- and three Dixons
executives -- Vice-Chairman and Financial Director Egon von
Greyerz, Corporate Finance Director Gerald M.N. Corbett, and
Secretary Jeoffrey Budd.


.I 12024
.C
acq
.W
BLOCKBUSTER ENTERTAINMENT <BBEC> SELLING UNIT.
    DALLAS, March 19 - Blockbuster Entertainment Corp said it
will sell its investment in Amtech Corp to the company
chairman, David Cook, and president, Kenneth Anderson.
    The company said the sale is taking place because Amtech is
not compatible with Blockbuster's main line of business, will
require substaintial additional funding to develop and market
its product, and is expected to sustain operating losses for
the forseeable future.
    The company said Cook and Anderson will form a new company
with the sale called Amtech Holdings Inc.


.I 12026
.C
earn
.W
MANOR CARE INC <MNR> 3RD QTR FEB 28 NET.
    SILVER SPRING, Md., March 19 -
    Shr 24 cts vs 21 cts
    Net 9,700,000 vs 8,286,000
    Revs 120.6 mln vs 115.7 mln
    Avg shrs 40.0 mln vs 39.9 mln
    Year
    Shr 69 cts vs 68 cts
    Net 27.8 mln vs 27.1 mln
    Revs 374.9 mln vs 358.8 mln
    Avg shrs 40.0 mln vs 39.9 mln
    NOTE: 1986 year net includes charge of 2,396,000 dlrs, or
six cts a share, for debt redemption


.I 12028
.C
earn
.W
ADTEC INC <JAIL> 3RD QTR FEB 28 NET.
    SAN ANTONIO, Texas, March 19 -
    Oper shr 11 cts vs 11 cts
    Oper net 164,000 vs 161,000
    Revs 2,598,000 vs 2,241,000
    Nine mths
    Oper shr 28 cts vs 18 cts
    Oper net 419,000 vs 276,000
    Revs 6,983,000 vs 5,019,000
    NOTE: Net excludes tax loss carryforwards 11,876 dlrs vs
83,045 dlrs in quarter and 36,684 dlrs vs 144,590 dlrs


.I 12030
.C
retail
.W
****CANADA JANUARY RETAIL SALES FALL 0.1 PCT AFTER DECEMBER'S 0.9 PCT GAIN - OFFICIAL.
Blah blah blah.

.I 12032
.C
ship
.W
ACCORD SAID IN SIGHT IN BRAZIL SEAMEN'S STRIKE.
    SAO PAULO, March 19 - An accord is in sight in Brazil's
20-day-old national seamen's strike, which has seriously
delayed exports, a union official said.
    The official, speaking from strike headquarters in Rio de
Janeiro, said up to 30,000 of Brazil's 40,000 seamen were still
on strike.
    He said the others had returned to work over the last week,
accepting pay offers of 120 pct from four private companies and
from the Frota Nacional de Petroleiros (Fronape), part of the
state-owned oil company Petrobras.
    The association grouping private shipowners, Syndarma, has
also offered 120 pct but talks have so far been deadlocked over
payment for overtime.
    The union official said he believed this issue would be
resolved shortly.


.I 12033
.C
earn
.W
PILLSBURY CO <PSY> 3RD QTR FEB 28 NET.
    MINNEAPOLIS, March 19 -
    Shr 56 cts vs 63 cts
    Net 48,500,000 vs 55,400,000
    Sales 1.53 billion vs 1.46 billion
    Avg shrs 86.6 mln vs 87.3 mln
    Nine mths
    Shr 1.73 dlrs vs 1.79 dlrs
    Net 150,300,000 vs 156,200,000
    Sales 4.60 billion vs 4.30 billion
    Avg shrs 86.7 mln vs 87.3 mln
    NOTE: 1987 results include gain of 9.7 mln dlrs, or 11 cts
a share from sale of assets
    1986 results include gain of 161 mln dlrs, or 18 cts a
share, from sale of assets, offset partly by a restructuring
provision
    Fiscal 1987 results restated to give effect to adoption of
financial accounting standards relating to pension costs.
Segment data for Foods restated to include results of commodity
marketing, previously reported separately. Earnings restated
for two-for-one stock split, effective Nov 30, 1986


.I 12036
.C
earn
.W
******JIM WALTER CORP 2ND QTR SHR 86 CTS VS 62 CTS.
Blah blah blah.

.I 12037
.C
coffee
.W
COLOMBIA WILL NOT ATTEND MANAGUA COFFEE MEETING.
    BOGOTA, March 19 - Colombia will not attend a meeting of
coffee producing countries scheduled for this weekend in
Nicaragua, Jorge Cadenas, manager of the National Coffee
Growers' Federation, said.
    "We prefer to wait until things are better prepared," he told
Reuters. He added the meeting could be postponed.
    Colombia, Brazil and the Central American coffee producing
countries were invited to the meeting in Managua to analyze the
market situation
    However, he did not dismiss the idea of dialogue and
negotiation in preparation for meetings of the International
Coffee Organization.
    Gilberto Arango, president of Colombia's exporters'
association, speaking to Reuters earlier this week, ruled out a
fresh Colombian initiative on export quotas saying producers
had now to show a common resolve which could emerge from
continuous contacts.
    The International Coffee Organization executive board is to
meet in London between March 31 and April 2.


.I 12039
.C
nickel
.W
SOVIET FIRM SAYS TALKS ON FOR PHILIPPINE MINE.
    MANILA, March 19 - Preliminary talks are on between two
state-owned Philippine banks and Soviet metal trading and
equipment sales company Tsvetmetpromexport on rescuing Nonoc
Mining and Industrial Corp (NMIC) which operates the
Philippines' only nickel refinery, a Soviet official said.
    G.I. Valentchits, Deputy Trade Minister at the Soviet
embassy, told Reuters a report earlier this week that
Tsvetmetpromexport had asked the Philippine government whether
it could help rehabilitate or operate NMIC was incorrect.
    "It is the other way round," Valentchits said.
    He said the Development Bank of the Philippines (DBP) and
the Philippine National Bank (PNB), which own NMIC, had
approached the Soviet state-owned firm in August last year.
    "We studied the question and asked the banks in which field
and what area they can help in the project," Valentchits said.
    He said there had been no reply yet from NMIC and the talks
were "only just initial."
    NMIC President Arthur Aguilar and other company officials
were not available for comment.
    Manila banking sources said the situation was serious at
NMIC, set up by DBP and PNB in August 1984 after the two banks
foreclosed on the assets of Marinduque Mining and Industrial
Corp over a 17 billion peso obligation.
    The bankers said NMIC itself has recently filed with the
Securities and Exchange Commission (SEC) for placing the
company under receivership and the suspension of its debt
payments in order to protect it from threats of foreclosure.
    Business Day newspaper said the latest credits extended to
NMIC include a 127 mln dlr loan, with Chemical Bank as the lead
agent.
    The newspaper said another 33 mln dlr loan was lead managed
by Citicorp.
    It said the government's privatisation program has listed
NMIC at a price of at least 700 mln dlrs, adding that foreign
investors were wary of taking over the ailing nickel firm.
    The bankers said NMIC was currently burdened with debts of
at least 15.8 billion pesos and is facing 10 civil lawsuits for
foreclosures from major creditors.
    The Business Bulletin newspaper said the firm had assets
totalling 12.2 billion pesos, while DBP and PNB exposures with
the firm were estimated at 14.9 billion pesos.
    NMIC has not operated its plant in the southern Philippines
since March 1986 after workers struck demanding payment of
salaries delayed because of the firm's financial difficulties.
    The firm produced 1,863 tonnes of nickel in the first two
months of 1986, compared with 2,364 tonnes in the same period
in 1985. The mine's capacity is 2,000 tonnes a month.


.I 12041
.C
earn
.W
JIM WALTER CORP <JWC> 2ND QTR FEB 28 NET.
    TAMPA, Fla., March 19 -
    Shr 86 cts vs 62 cts
    Shr diluted 86 cts vs 59 cts
    Net 28.0 mln vs 18.3 mln
    Revs 513.5 mln vs 517.0 mln
    First half
    Shr 2.03 dlrs vs 1.78 dlrs
    Shr diluted 2.03 dlrs vs 1.61 dlrs
    Net 65.9 mln vs 50.0 mln
    Revs 1.11 billion vs 1.08 billion
    Avg shrs 32.4 mln vs 28.1 mln
    Avg shrs diluted 32.4 mln vs 32.4 mln
    NOTE: 1987 net includes gains of 645,000 dlrs, or two cts a
share, in quarter and 12,290,000 dlrs, or four cts a share,
from reduced pension expense under new accounting procedures
    Net in both 1987 periods also includes gain of 4.0 mln
dlrs, or 12 cts a share, from sale of land in Alabama.


.I 12042
.C
retail
.W
CANADA RETAIL SALES FALL 0.1 PCT IN JANUARY.
    OTTAWA, March 19 - Canada's retail sales, seasonally
adjusted, fell 0.1 pct in January after gaining 0.9 pct in
December, Statistics Canada said.
    Retail sales fell to 11.98 billion dlrs from 11.99 billion
dlrs in December, 1986. Unadjusted sales were 6.9 pct higher
than in January, 1986.
    In January, automobile sales fell 1.9 pct, department store
sales slipped 3.2 pct and variety stores sales plunged 14 pct.
The declines were offset by a 5.5 pct increase in grocery store
sales and a 9.9 pct gain in hardware sales.


.I 12043
.C
acq
.W
SCAN-GRAPHICS TO MERGE WITH PUBLIC COMPANY.
    BROOMALL, Pa., March 19 - Scan-Graphics Inc said it will be
acquired by Captive Venture Capital Inc, a public company,
in a stock transaction approved by shareholders of both
companies.
    As a result of the merger, the former shareholders of
Scan-Graphics will become the majority shareholders of Captive
Venture Capital. The name of the corporation will be changed to
Scan-Graphics Inc and its borad of directors will be composed
of individuals now on the Scan-Graphics board.
    Under the terms of the deal, Capitive Venture Capital will
issue 1.6 mln shares of restricted convertible preferred stock,
convertible into 16 mln shares of common stock, in exchange for
all outstanding stock of Scan-Graphics.
    Upon completing the deal, there will be 2,649,500 common
shares of Capitive Venture Capital issued and outstanding, of
which 149,500 shares will be held by the public.
    In addition, there are 95,050 tradeable class A warrants
and 100,000 B warrants, each of which entitles the holder to
buy 10 shares of common stock at 1.25 dlrs and 1.50 dlrs,
respectively, a share.
    Scan-Graphics makes systems that allow users to convert
graphic documents, such as charts, maps and engineering
drawings, into computer data that can be displayed, edited and
stored by computer.
    Currently, Captive Venture Capital stock is traded over the
counter and will soon trade under the Scan-Graphics name.
Application for Nasdaq listing is expected as soon as
requirements are met.


.I 12045
.C
earn
.W
WISCONSIN POWER AND LIGHT CO <WPL>VOTES PAYOUT.
    MADISON, WIS., March 19 -
    Qtly div 76 cts vs 76 cts prior qtr
    Pay 15 May
    Record 30 April


.I 12046
.C
earn
.W
GOODMARK FOODS INC <GDMK> 2ND QTR FEB 22 NET.
    RALEIGH, N.C., March 19 -
    Shr 19 cts vs 18 cts
    Net 835,000 vs 794,000
    Sales 23.9 mln vs 20.5 mln
    Nine mths
    Shr 47 cts vs 91 cts
    Net 2,104,000 vs 3,489,000
    Sales 74.5 mln vs 65.2 mln
    Avg shrs 4,450,675 vs 3,822,894


.I 12048
.C
trade
.W
ECONOMIC SPOTLIGHT - U.S. DEFICIT WITH NICs.
    By Claire Miller, Reuters
    NEW YORK, March 19 - The U.S. trade deficit with Taiwan and
Korea is expected to widen this year, despite some economic and
currency adjustments by the two newly industrialized countries,
economists said.
    "The surpluses that Taiwan and Korea ran with the U.S. in
1986 will get bigger. This time next year, the U.S. will be
screaming at those countries about their exports," said Steve
Cerier of Manufacturers Hanover Trust Co.
    Taiwan is currently the third biggest exporter to the U.S.
after Japan and Canada, while Korea is the seventh largest.
    Faced with heightened protectionist sentiment in Congress,
the Reagan administration has been stepping up the rhetoric
against Taiwan and Korea, urging those countries to allow their
currencies to appreciate and lift impediments to free trade.
    The thrust has shifted to those newly industrialized
countries (NICs) amid signs the dollar's steep drop against the
currencies of Japan and most EC nations -- previously the main
focus of the U.S. drive to cut its trade gap -- is beginning to
close the competiveness gap for American goods.
    U.S. Treasury secretary James Baker said recently that he
expects a reduction in Japan's trade surplus this year.
    But U.S. manufacturers still are losing markets on their
own doorstep to Taiwan and Korea, whose currencies have not
risen as much as the yen and the mark. As major beneficiaries
of soft oil prices and with low labor costs, Taiwanese and
Korean exporters are well-placed to take up the slack.
    "In 1986, the fashionable comment in Washington was
Japan-bashing. Now it's NIC-bashing," said Robert Chandross, of
Lloyds Bank PLC.
    Asia's four main NICs -- Hong Kong, South Korea, Singapore
and Taiwan -- accounted for almost one-fifth of the overall 170
billion dlr U.S. merchandise trade deficit for 1986.
    The U.S. trade gap with Taiwan rose to 15.7 billion dlrs in
1986 from 13.1 billion in 1985, while the bilateral trade
deficit with South Korea grew to 7.1 billion from 4.8 billion.
    And preliminary U.S. data show that the growth trend is
continuing. The U.S. trade shortfall with Taiwan was 1.6
billion dlrs in January, up 24.4 pct from a year earlier. The
gap with Korea was 700 mln dlrs, up 24.8 pct from a year ago.
    Lately both nations have said they will take steps to
defuse incipient trade tensions. Korea said it is choosing many
of the 122 items on which the U.S. wants it to cut import
tariffs in order to deflect pressure for currency revaluation.
    Still, South Korean trade minister Rha Woong Bae said last
week that Korea would maintain a trade surplus for three to
five years as a way to cut its 44.5 billion dlr foreign debt.
    For its part, Taiwan said in January that it will cut
tariffs on 1,700 goods sometime in the second half of 1987 and
try to diversify exports. But vice economic minister Wang
Chien-Shien said last month that he still does not expect
Taiwan's trade surplus with the U.S. will fall in 1987.
    The NICs have made deep inroads into markets for textiles
and electronic goods. But Korea is raising its profile in the
area of "big-ticket" manufactured goods, notably cars.
    Korea expects its auto exports -- mostly for North America
-- to balloon to 675,000 units in 1987 from zero in 1985.
    "The NICs' exports are almost all manufactured goods. When
their exports rise it hits the heart of the U.S. manufacturing
base. It cuts directly to us and to our customers," said Bob
Wendt, manager for economic studies at Bethlehem Steel Corp.
    The U.S. takes 90 pct of Korea's computer products exports,
72 pct of its electrical appliances and 65 pct of its
telecommunications equipment.
    A recent study by Morgan Guaranty Trust Co says Taiwan and
South Korea are the most pressing trade issue for the U.S.
    While Hong Kong and Singapore run trade surpluses with the
U.S., these are offset by their deficits with other countries.
    But Taiwan and, to a lesser extent, South Korea, stand in
marked contrast. Both of these nations have moved rapidly into
large bilateral surplus with the U.S. and major overrall trade
and current account surpluses, the Morgan study says.
    Morgan expects Taiwan's overall trade surplus to grow to
18.5 billion dlrs in 1987 from 15.2 billion last year, and
Korea's to increase to 6.5 billion dlrs from 3.5 billion.
    Concern about the NICs is not confined to the U.S.
    "A lot of Korea and Taiwan's exports to the U.S. have been
at Japan's expense," said Richard Koss at General Motors Corp.
    February's Paris meeting of six major industrial powers
exorted NICs to lower trade barriers and revalue currencies.
    But this two-pronged approach has drawn little response
from the two nations so far and, in any case, will only work
with a sizeable lag, economists say.
    The U.S. has not said how much it thinks the Taiwan's and
Korea's currencies should climb. The Taiwan dollar, which is
pegged to the U.S. dollar, has risen about 15 pct since
September 1985 while the Korean won has risen about five pct.
    But in real terms the Taiwan dollar has been flat against
the U.S. unit and the won has lost seven pct, economists say.
    "We've not seen any lessening of competition from those
countries that we can attribute to currency changes," said
Bethlehem Steel's Wendt.
    And so far, U.S. pleas for Taiwan and Korea to use their
hefty export earnings to import more have had little effect.
    Moreover, it is uncertain how far U.S. protectionism will
get given the administration's free-trade stance. "It's hard to
see that anything will be passed much before year-end. And then
the question is, will it have teeth?" one economist said.
   


.I 12049
.C
acq
.W
RANK XEROX <XRX> TO SELL SOUTH AFRICAN UNIT.
    NEW YORK, March 19 - Xerox Corp's U.K. unit, Rank Xerox
Ltd, said it agreed in principle to sell its South African
company, Rank Xerox South Africa Pty Ltd, to <Altron Group's>
Fintech unit.
    Terms of the deal were not disclosed.
    Altron said the acquisition was key to making Fintech an
office systems company.
    The South African Rank Xerox unit sells copiers and
duplicators throughout South Africa and in Namibia (South West
Africa). It has over 800 employees, all of whom will be
retained by Fintech when the deal closes, Rank Xerox said.


.I 12052
.C
earn
.W
COUNTRYWIDE CREDIT INDUSTRIES INC <CCR> 4TH QTR.
    PASADENA, Calif., March 19 - Feb 28 end
    Shr 44 cts vs 16 cts
    Shr diluted 37 cts vs 16 cts
    Net 5,378,000 vs 1,987,000
    Revs 26.8 mln vs 14.6 mln
    Avg shrs 12.4 mln vs 12.1 mln
    Shr 1.26 dlrs vs 45 cts
    Shr diluted 1.10 dlrs vs 45 cts
    Net 15.5 mln vs 5,401,000
    Revs 80.3 mln vs 46.4 mln
    NOTE: Share adjusted for stock dividends declared through
today.   


.I 12054
.C
earn
.W
COUNTRYWIDE CREDIT <CCR> SETS HIGHER DIVIDEND.
    PASADENA, Calif., March 19 - Countrywide Credit Industries
Inc said its board declared an eight ct per share quarterly
dividend, up from seven cts last quarter, and a two pct stock
dividend.
    The cash dividend is payable April 14 to holders of record
March 30 and the stock dividend is payable April 17 to holders
of record March 31.


.I 12056
.C
coffee
.W
MADAGASCAR COFFEE PRODUCTION SEEN LOWER IN 1987.
    ANTANANARIVO, March 19 - Madagascar's available coffee
output is estimated at 80,725 tonnes this year, down from
82,210 in 1986, due to a rundown of government agricultural
services and the poor state of feeder roads in rural areas,
Agriculture Ministry sources said.
    This is after accounting for the loss of some 15,000 to
20,000 tonnes due to the transport problems in the countryside,
they said.
    The sources did not give an estimate for exports in 1987,
but they noted that shipments declined to 37,200 tonnes last
year from 41,662 in 1985.
    Low yields from the country's ageing coffee plantations and
prevalence of the fungal disease Hemileia Vastatrix also
contributed to the poor performance, the sources said.
    They pointed out that 52 pct of Madagascar's coffee bushes
were planted before 1930.
    The sources said Madagascar was still a long way from
reaching the production target of 110,000 tonnes per year and
the export target of 63,000 tonnes outlined in the government's
1986-1990 five-year plan.
    In order to reverse the decline in coffee production, the
government has decided to plant 20,000 hectares with
high-yielding arabica and canephora varieties, the sources
said.
    The planting programme will begin this year and is aimed at
producing 300 to 360 kilos per hectare of beans with a low
caffeine content.
    The sources added that Madagascar's plan to export roasted
coffee has failed to take off due to packaging problems. Only
650 tonnes of roasted coffee were exported last year.


.I 12059
.C
earn
.W
EXCEL INDUSTRIES INC <EXC> BOOSTS DIVIDEND.
    ELKHART, IND., March 19 -
    Qtly div nine cts vs eight cts prior qtr
    Pay 20 April
    Record 3 April


.I 12061
.C
earn
.W
BAKER, FENTRESS AND CO <BKFR> VOTES DIVIDEND.
    CHICAGO, March 19 -
    Qtly div 25 cts vs 25 cts prior qtr
    Payable 10 June
    Record 15 May


.I 12062
.C
acq
.W
AMCAST <ACST> COMPLETES SALE OF NEWMAN DIVISION.
    DAYTON, Ohio, March 19 - Amcast Industrial Corp said it
completed the sale of its Newman Division to Newman
Manufacturing Inc, a new company formed by Newman's employees.
    The sale price was not disclosed.
    Amcast said Newman's Kendallville, Indiana plant is one of
the country's largest producers of gray iron castings for the
automotive and commercial air conditioning and refrigeration
industries. It said the plant employs 300 people.
    Amcast said it decided to sell the division to move out of
the gray iron castings business.


.I 12063
.C
gas;crude;
.W
U.S. ENERGY SECRETARY RULES OUT GASOLINE TAX.
    WASHINGTON, March 19 - Energy Secretary John Herrington
said he would rule out a tax on gasoline as one option to help
avert what his departmet has called the threat of increased
reliance on foreign oil in the coming years.
    He said at a news conference that any recommendation he
would make would have to increase domestic production, not
cause widespread economic hardship and have a minimal cost to
the U.S. taxpayer.
    On the grounds of increasing production, he said, "I would
rule out a gasoline tax."
    Herrington also repeated he would rule out an oil import
fee because of the widespread dislocation it would cause -- the
loss of about 400,000 jobs nationwide due to higher oil prices
and a drop in the gross national product by about 32 billion
dlrs.
    He said an increased depletion allowance, to 27.5 pct, on
new and enhanced production of oil and natural gas would be a
cheap way to spur domestic production.
    He estimated this cost at about 200 mln dlrs a year.
    Herrington proposed the increased depletion allowance to
the White House Tuesday but the White House reaction was cool.
    The White House said it would study the proposal, but was
generally oppposed to altering the national tax code, just
passed last year.
    Herrington, asked his reaction to the White House reaction,
said, "If I were the White House, I would be cool, too."


.I 12065
.C
gas;crude;
.W
******U.S. ENERGY CHIEF RULES OUT GASOLINE TAX AS WAY TO AVERT PENDING OIL CRISIS.
Blah blah blah.

.I 12067
.C
grain
.W
USDA ASKS TIGHT INSECT RULES FOR GRAIN SHIPMENTS.
    WASHINGTON, March 19 - The U.S. Agriculture Department is
proposing tighter federal standards setting allowable limits on
insect infestations in grain shipments.
    The changes in the standards would include the following:
    -- Establishing equal tolerances for the number of live
insects in shipments of food grains, feed grains and oilseeds.
    -- Revising the definition of "infested" to give equal value
to all insects injurious to grain.
    -- Establishing lower levels of infestations. In 1988, the
infested level would be set at three or more live insects per
representative sample (about 100 grams), in 1990 two or more
insects, and in 1992 the final infestattion level would be set
at one or more live insects per representative sample.
    -- Revising the definition of sample grade by adding a
limit of 10 live or dead insects per sample.
    -- Revising the definition of sample grade for wheat by
adding a limit of 32 insect-damaged kernels per 100 grams of
wheat.
    The department asked for public comments on the proposals
by April 17.


.I 12068
.C
earn
.W
PILLSBURY <PSY> HURT BY RESTAURANT OPERATIONS.
    MINNEAPOLIS, March 19 - Pillsbury Corp, reporting lower
earnings for the third quarter ended February 28, said a strong
performance by its Foods Group was offset by Restaurants Group
declines.
    Excluding unusual items, it said restaurants operating
profit was down in the quarter 12 pct from a year ago as sales
rose four pct.
    It said Burger King USA and Bennigan's reported higher
operating profit, but profits fell sharply at Steak and Ale,
which introduced a new menu.
    Pillsbury also reported lower profits at Distron, Burger
King's distribution arm, and said increased investment spending
on developing concepts - QuikWok, Bay Street and Key West Grill
- hurt results.
    It said Foods operating profit, excluding unusual items,
rose 10 pct with international operations and domestic breads
and baking products major contributors to improvement in the
quarter.
    A turnaround in grain merchandising was a major factor in
profit improvement for the nine months, Pillsbury said.
    Pillsbury said corporate expense showed a 4.3 mln dlr
profit in the quarter reflecting a 10.5 mln dlr gain on the
sale of a joint interest in an Australian food company and
lower corporate expenses, largely as a result of an early
retirement program initiated a year ago.
    Earlier, Pillsbury reported fourth quarter earnings of 48.5
mln dlrs, or 56 cts a share, down from 55.4 mln dlrs, or 63 cts
a share a year ago. Sales advanced to 1.53 billion dlrs from
1.46 billion dlrs.
    Pillsbury said loss of investment tax credits under the
1986 Federal Tax Reform Act reduced per-share earnings by nine
cts in the quarter and 19 cts in the nine months.
    As a result of the act, it said its effective income tax
rate rose eight points to 48.1 pct in the quarter and 5.5
percentage points to 49.7 pct for the nine months.


.I 12070
.C
earn
.W
AGENCY RENT-A-CAR INC <AGNC> 4TH QTR JAN 31 NET.
    CLEVELAND, March 19 -
    Shr 26 cts vs 21 cts
    Net 5,553,000 vs 4,307,000
    Revs 45.1 mln vs 34.2 mln
    Year
    Shr 86 cts vs 67 cts
    Net 18.2 mln vs 14.0 mln
    Revs 161.1 mln vs 118.3 mln
    NOTE: Share adjusted for stock dividends.


.I 12071
.C
earn
.W
AGENCY RENT-A-CAR <AGNC> SETS STOCK DIVIDEND.
    CLEVELAND, March 19 - Agency Rent-A-Car Inc said its board
declared a five pct stock dividend, payable May 22 to holders
of record on May 8.
    The company also said it plans to increase the size of its
rental fleet in the year ending January 31 by 20 to 25 pct and
expand its rental office network.


.I 12072
.C
money-fx;interest;
.W
FED EXPECTED TO TAKE NO MONEY MARKET ACTION.
    NEW YORK, March 19 - The Federal Reserve is expected to
refrain from reserve-management intervention in the U.S.
Government securities market, economists said.
    If the Fed does act, however, they said it would be likely
to add temporary reserves indirectly by arranging around 1.5
billion dlrs of customer repurchase agreements.
    Federal funds, which averaged 5.97 pct yesterday, opened at
six pct and remained there in early trading.


.I 12073
.C
grain;rice;
.W
ASCS SEEKS OFFERS TO PROCESS CCC ROUGH RICE.
    KANSAS CITY, March 19 - The Agricultural Stabilization and
Conservation Service (ASCS) is seeking offers to process rough
rice owned by the Commodity Credit Corporation (CCC) and
deliver about 27.0 mln pounds of milled rice for export
shipment May 6-20 and May 21-June 5, an ASCS spokesman said.
    Offers must be received by 1300 CDT April 7, and successful
offerors will be notified April 10.


.I 12074
.C
iron-steel
.W
EC MINISTERS AGREE NEED FOR BIG STEEL CLOSURES.
    By Gerrard Raven, Reuters
    BRUSSELS, March 19 - European Community (EC) industry
ministers today declared there is a need for a massive round of
closures of steel plants to bring capacity in the 12-country
bloc into reasonable balance with demand.
    The ministers were meeting to discuss a plan for voluntary
plant closures drawn up by the industry lobby group Eurofer
which it calculates would cost around 22,000 jobs.
    Diplomats said that in their initial reactions to the
scheme, most ministers declared it was a useful basis for
discussion, but did not go nearly far enough.
    Eurofer says it has identified scope for the closure of
plants which have an annual capacity of 15.26 mln tonnes,
provided the companies concerned can be fully repaid by the EC
or national governments for redundancy and other social costs.
    But EC Executive Commission sources said Industry
Commissioner Karl-Heinz Narjes told ministers today that 30 mln
tonnes of annual capacity was excess to requirements and should
be closed by the end of 1990.
    He said the Eurofer plan in particular fails to pinpoint
the scope for closure in heavy hot-rolled wide-strip products,
typically produced in plants employing thousands of people.
    The sources said no minister challenged Narjes' analysis
that four or five hot-rolled wide-strip lines would have to
close.
    They said ministers agreed that the Eurofer plan should be
expanded and developed through meetings among the industry
body, the Commission and representatives of member states.
    However, diplomats said it was clear from today's
discussions that such meetings will be difficult.
    They said member states are split on whether to reduce the
scope of a quota production system, which at present protects
EC steelmakers from the full force of competition for 65 pct of
their products, while talks on the closure plan proceed.
    It was also clear that there will be tough talks on which
EC member states should bear the brunt of the closures and on
how much funding for help to those thrown out of work should
come from Community coffers.
    German minister Martin Bangemann said his country's steel
industry, the largest in the EC, should not suffer
proportionately more than others, German sources said.
    But British diplomats said their minister, Giles Shaw,
insists that the profitability of companies should be taken
into account.
    The state owned British Steel Corporation, benefitting from
massive recent write-offs of its accumulated debts, is
currently one of the few EC steel companies in the black.
    Ministers were this afternoon trying to agree a joint
statement on the Eurofer plan and the situation in the
industry.


.I 12079
.C
gold
.W
MURGOLD RESOURCES <MGDVF> DETAILS ASSAYS.
    TORONTO, March 19 - Murgold Resources Inc said assays
received from 320 feet of drifting on the number-three vein at
the Chester Township property south of Timmins, Ontario,
indicate an average of 0.528 ounce of gold per ton across an
average width of five feet for the 320-foot length.
    The last working face assayed 0.422 ounce of gold per ton
across 8.5 feet and the drift will be continued eastward from
that point, the company said.
    


.I 12080
.C
earn
.W
(CORRECTED) - FEDERAL PAPER BOARD CO <FBO> PAYOUT.
    NEW YORK, March 19 -
    Qtly div 17.5 cts vs 17.5 cts in prior qtr
    Payable April 15
    Record March 31
    (Company corrects amount of previous payment in MARCH 18
item to show there was no change)


.I 12081
.C
acq
.W
ALCOA <AA> TO SELL AMERICAN POWDERED METALS.
    PITTSBURGH, March 19 - Aluminum Co of America said it has
signed a letter of intent to sell its American Powdered Metals
Co subsidiary to R.W. Technology Inc for undisclosed terms,
with completion expected in early May.
    American Powdered makes metal parts for various industries.


.I 12087
.C
earn;crude;nat-gas;
.W
BRITOIL SEES LOWER U.K. EXPLORATION EXPENDITURE.
    LONDON, March 19 - Britoil Plc's <BTOL.L> exploration
expenditure for the U.K. In 1987 was likely to be only about a
third of the level in 1986, though overseas expenditure would
remain approximately the same, Chief executive David Walker
said.
    He told reporters following the release of the company's
1986 figures that project expenditure would also remain at 1986
levels.
    U.K. Project expenditure in 1986 rose to 208 mln stg from
184 mln while exploration expenditure dropped to 87 mln from
156 mln. Overseas exploration fell to 28 mln from 58 mln in
1985.
    Earlier, Britoil posted a drop in pretax profit for 1986 to
134 mln stg from 759 mln in 1985, before an extraordinary
charge of 50 mln stg on the company's U.S. Assets. The results
were slightly better than analysts forecast and the share
firmed to 231p from 222p at last night's close. Chairman Sir
Philip Shelbourne said the collapse in the oil price in 1986
had made the period extremely difficult but the company had
come through remarkably well.
    Provided the recovery in oil prices was maintained, the
conditions would be right for a substantially improved
performance this year.
    He added that the firmness of oil prices in March, when
they were normally weaker, made him "a bit encouraged" about the
prospects for future levels.
    Walker added that Britoil would feel confident if the price
stayed within a band of 15 dlrs to 20 dlrs a barrel.
    Britoil had received some 100 responses to its announcement
of a desire to sell the assets and was asking for bids by the
latter part of April.
    End-year reserves rose to 603 mln barrels of oil compared
with 503 mln previously. However, Walker noted that this
included a revised definition of reserves.
    If 1985 figures were restated along the same lines, the
reserve figure would show a drop from 720 mln barrels
previously.
    Gas reserves also eased to 3,568 billion cubic feet from a
restated 3,660 billion.

.I 12090
.C
cpi
.W
U.K. REVISES RETAIL PRICE INDEX FROM FEBRUARY.
    LONDON, March 19 - The U.K. Government tomorrow will
release the first of its Retail Price Index (RPI) figures
calculated on a revised group of components and rebased on
January 1987, as previously announced, the Employment
Department said.
    The index, Britain's measure of inflation, is for February.
Earlier data will not be revised as there are no equivalent
figures including the new components, a spokesman said.
    Previously, the RPI base was January, 1974.
    Market forecasts centre on a 0.4-0.5 pct monthly rise in
February and a year on year rate about 4.0 pct. The government
forecasts annual inflation will be 4.0 pct at the end of 1987.


.I 12097
.C
earn
.W
SAND TECHNOLOGY SYSTEMS <SNDCF> 2ND QTR NET.
    Toronto, March 19 - ended January 31
    Shr nil vs nil
    Net profit 351,000 vs loss 243,000
    Sales 7,050,000 vs 7,012,000
    Avg shrs 106,780,000 vs 93,666,000
    Six mths
    Shr loss one ct vs loss one ct
    Net loss 999,000 vs loss 563,000
    Sales 10.6 mln vs 13.0 mln
    Avg shrs 106,641,000 vs 92,986,000


.I 12098
.C
earn
.W
RYAN'S FAMILY STEAK HOUSE <RYAN> SETS SPLIT.
    GREENVILLE, S.C., March 19 - Ryan's Family Steak Houses Inc
said its board declared a three-for-one stock split, payable
May 20 to holders of record May 6.
    The company said the split is subject to shareholder
approval of an increase in authorized shares to 100 mln from 20
mln at the April 22 annual meeting.


.I 12101
.C
reserves
.W
****** French official reserves 388.68 billion francs at end Feb vs 375.95 billion end Jan.
Blah blah blah.

.I 12102
.C
earn
.W
INERTIA DYNAMICS <TRIM> TO PAY STOCK DIVIDEND.
    PHOENIX, Ariz., March 19 - Inertia Dynamics Corp said it
declared a 50 pct stock dividend, payable May 1 to shareholders
of record April 3.


.I 12103
.C
earn
.W
CSP INC <CSPI> 2ND QTR FEB 28 NET.
    BILLERICA, Mass., March 19 -
    Shr one ct vs 21 cts
    Net 24,000 vs 612,000
    Sales 2,061,000 vs 3,914,000
    1st half
    Shr eight cts vs 43 cts
    Net 223,000 vs 1,220,000
    Sales 4,584,000 vs 7,912,000


.I 12104
.C
earn
.W
PUBLISHERS EQUIPMENT CORP <PECN> YEAR NET.
    DALLAS, March 19 -
    Shr profit eight cts vs loss 23 cts
    Net profit 251,000 vs loss 731,000
    Revs 29.1 mln vs 25.9 mln
    Backlog 18.9 mln vs 12.5 mln


.I 12105
.C
earn
.W
CAVALIER HOMES INC <CAVH> 4TH QTR NET.
    WICHITA FALLS, Texas, March 19 -
    Shr 10 cts vs 14 cts
    Net 191,465 vs 193,799
    Sales 7,160,945 vs 6,576,670
    Avg shrs 2,000,565 vs 1,400,000
    Year
    Oper shr 33 cts vs 50 cts
    Oper net 605,725 vs 694,785
    Sales 23.3 mln vs 22.1 mln
    Avg shrs 1,840,692 vs 1,400,000
    NOTE: 1985 year net excludes 30,000 dlr tax credit.


.I 12106
.C
earn
.W
COLONIAL COMMERCIAL CORP <CCOM> 4TH QTR NET.
    VALLEY STREAM, N.Y., March 19 -
    Shr not given
    Oper net profit 405,914 vs loss 145,380
    Revs 2,446,901 vs 1,295,187
    Year
    Shr not given
    Oper net profit 1,211,465 vs loss 178,101
    Revs 9,085,222 vs 4,995,735
    NOTE: Earnings from 1983 on benefit preferred shareholders
until preferred shareholders' equity equals or exceeds
liquidating and mandatory redemption values.


.I 12109
.C
ship
.W
PANAMA CANAL OFFICIAL CONFIRMS NO 1988 TOLL RISE.
    LONDON, March 19 - Panama Canal toll charges will not rise
in the year to end-September 1988, despite last October's
landslide which dumped 0.5 mln cubic yards of debris into the
waterway, Canal Commission Administrator Dennis McAuliffe said.
    He told a press conference that in confirming the
Commission's earlier announcement of unchanged tolls for 1988,
he was not necessarily implying there would be a rise in 1989.
    The canal would probably make a five to six mln dlr loss in
the current financial year but this could be carried over and
met from next year's revenues.
    This year's deficit resulted from the landslide which cost
the canal about 15 mln dlrs, McAuliffe said. This included
eight to nine mln dlrs in immediate costs with the rest being
spent on earth-moving operations to prevent any further
landslides.
    He said the landslide was not caused by deforestation and
he described as grossly exaggerated reports that there was any
threat to the canal's water supply in the foreseeable future.
    Studies concerning the possibility of widening the Gaillard
cut would not be affected by the landslide, he said, adding
that he expected the canal board to determine whether and when
the canal needed widening by January 1988 at the latest.


.I 12112
.C
acq
.W
RICHARDSON <RELL>TO BUY ITALIAN SEMICONDUCTOR FIRM.
    LAFOX, ILL., March 19 - Richardson Electronics Ltd said it
agreed to buy for undisclosed terms, G.E.B., Giant Electronics
Brand, a Florence, Italy-based distributor of electron tubes
and semiconductors.


.I 12116
.C
money-fx
.W
******FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.
Blah blah blah.

.I 12117
.C
wheat;grain;barley;corn;
.W
******EC GRANTS 25,000 TONNES BARLEY, 80,000  FRENCH MAIZE LICENCES, REJECTS WHEAT - TRADERS.
Blah blah blah.

.I 12119
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 19 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at six pct when the
Fed began its temporary and indirect supply of reserves to the
banking system.


.I 12120
.C
earn
.W
******DOMTAR SETS TWO-FOR-ONE STOCK SPLIT TO TAKE EFFECT MAY 14                         .
Blah blah blah.

.I 12121
.C
earn
.W
PUBLIC SERVICE CO OF N.H.<PNH> OMITS DIVIDEND.
    MANCHESTER, N.H., March 19 - Public Service Co of New
Hampshire said its board voted to omit the quarterly dividend
which would have been paid on May 15.
    The company said the omission is the thirteenth consecutive
dividend omission.


.I 12124
.C
earn
.W
REXNORD INC <REX> 1ST QTR JAN  31 LOSS.
    MILWAUKEE, WIS., March 19 - 
    Shr loss 76 cts vs profit 50 cts
    Net loss 19,186,000 vs profit 12,438,000
    Sales 157.9 mln vs 149.2 mln
    NOTE: Fiscal 1987 net loss includes a pretax charge of 19.5
mln dlrs from restructuring and an after tax charge of about
seven mln dlrs from debt prepayment premiums.
    Fiscal 1986 net profit includes a pretax gain of 7.2 mln
dlrs on the sale of some land, an after tax loss 1.35 mln dlrs
from discontinued operations and an after tax gain of 6.7 mln
dlrs from a change in accounting.
    All results restated to exclude five businesses divested as
part of the company's restructuring program.


.I 12127
.C
wheat;grain;corn;
.W
TRADERS DETAIL EC GRAIN EXPORT LICENCES.
    LONDON, March 19 - The EC Commission granted 25,000 tonnes
of free market barley export licences at today's tender and
80,000 tonnes of French maize, grain traders said.
    The maximum export rebate for barley was set at 137.25 Ecus
and for maize at 129.75 Ecus per tonne.
    All bids for wheat were rejected, they said.


.I 12128
.C
earn
.W
CARSON <CRN> CITES IMPACT OF TAX REFORM ACT.
    CHICAGO, March 19 - Carson Pirie Scott and Co said the Tax
Reform Act of 1986, which repealed investment tax credits, had
a negative impact of 22 cts a share on earnings for the year
ended January 31.
    Earlier, Carson reported yearly per-share earnings of 1.83
dlrs, down from 1.86 dlrs a year ago. Average shares increased
to 10.2 mln from 9.9 mln a year earlier. Sales gained to 1.41
billion dlrs from 1.30 billion dlrs.
    Carson said it was "extremely optimistic about improved
profit performance in 1987."
    It said in the first half of 1987 it hopes to reduce
seasonal-type losses sustained in the 1986 first and second
quarters.
    The company said that in early April its Oak Brook Hills
Hotel and Conference Center in suburban Chicago will open under
its management. Provisions for startup expenses have been made,
it added.


.I 12129
.C
earn
.W
DOMTAR PLANS TWO-FOR-ONE STOCK SPLIT.
    MONTREAL, March 19 - <Domtar Inc> said it plans a
two-for-one stock split to take effect May 14.
    The company said shareholders will be asked to approve the
split at the annual meeting on April 29.
    Domtar said its directors believe the split could favorably
affect marketability of the shares and encourage wider
distribution.
    The shares have been trading recently in a range of 45
dlrs. Domtar stock was previously split on a two-for-one basis
in June, 1985.


.I 12130
.C
acq
.W
FINANCIAL PERFORMANCE <FPCC> PURSUES EXPANSION.
    NEW YORK, March 19 - Financial Performance Corp said it
continued its rapid expansion with a signing of a partnership
agreement with Gold Sierra Financial Advisors, founded by
former Bank of America officers in capital markets.
    It said the agreement, under which it owns 50 pct of the
partnership, enables it to move into the mergers and
acquisitions business.


.I 12132
.C
acq
.W
FED APPROVES AMSOUTH <ASO> AFFILIATION.
    BIRMINGHAM, Ala, March 19 - AmSouth Corp said the Federal
Reserve Board approved the affiliation of First Tuskaloosa Corp
with Amsouth.
    The approval was the final regulatory step in the
affiliation process which began in August, Amsouth said.
    Under terms of the affiliation, each First Tuskaloosa
shareholder will receive 66 dlrs value of AmSouth stock for
each share held. The total consideration is valued at 105.6 mln
dlrs.


.I 12133
.C
reserves
.W
FRENCH FEBRUARY OFFICIAL RESERVES RISE.
    PARIS, March 19 - French official reserves rose 12.73
billion francs to 388.68 billion francs at the end of February
from 375.95 billion at the end of January, the Finance Ministry
said.
    It said in a statement the rise was mainly due to inflows
of foreign currency through the exchange stabilisation fund,
which resulted in an increase of 12.41 billion francs.
    Reserves of European Currency Units rose by 25 mln francs
to 73.27 billion francs, due to interest adjustments, while
gold reserves rose by two mln francs to 218.46 billion francs.


.I 12134
.C
gnp
.W
FRENCH INSTITUTE PESSIMISTIC ON 1987 GROWTH.
    PARIS, March 19 - French gross domestic product will grow
by only 1.5 pct in real terms this year, compared with the
government's forecast of two to 2.5 pct growth, the private
Institut des Previsions Economiques et Financieres pour le
Developpement des Entreprises (IPECODE) said.
    However, it expects growth to recover next year to the 1986
level of two pct.
    IPECODE said demand and production would develop in
parallel this year, in contrast to last year when production
was unable to keep pace with the strong rise in domestic
demand, unleashing higher import demand.
    Claims on the International Monetary Fund (IMF) rose by 298
mln francs to 19.61 billion francs, due to net withdrawals in
francs by member nations, and an increase in reserves of
Special Drawing Rights (SDRs) due mainly to the repayment of
French debts.
    Its deficit with the European Monetary Cooperation Fund
(FECOM) remained unchanged in February at 33.90 billion francs.
    French household consumption, which rose by 3.1 pct last
year, is likely to grow by just 1.1 pct this year and 1.5 pct
in 1988, it added.
    Industrial investment is expected to rise by 4.3 pct this
year and 5.5 pct in 1988, down from 6.5 pct in 1986.
    Inflation, which was running at 2.1 pct at the end of 1986,
is likely to rise to 2.9 pct at the end of this year, IPECODE
said, while the government has forecast 2.5 pct.
    However, the institute said inflation would fall back to
2.5 pct at the end of 1988, "provided that real wage costs
remain within the framework of productivity rises."


.I 12137
.C
acq
.W
INDEPENDENCE BANCORP <INBC> COMPLETES MERGER.
    PERKASIE, Penn., March 19 - Independence Bancorp Inc said
it completed its merger with Scranton, Penn.-based <Third
National Bank and Trust Co>, with assets of 316 mln dlrs.
    Independence said its combined assets are now 2.5 billion
dlrs.
    The company said that each share of Third National common
will be exchanged for 4.06 shares of its common. Independence
said the merger will be accounted for as a pooling of
interests.


.I 12138
.C
earn
.W
RIVERSIDE GROUP INC <RSGI> 4TH QTR.
    JACKSONVILLE, Fla, March 19 -
    Shr 55 cts vs 93 cts
    Net 1.6 mln vs 2.6 mln
    Revs 5.3 mln vs 1.2 mln
    Year
    Shr 73 cts vs 1.36 dlrs
    Net 2.0 mln vs 3.0 mln
    Revs 9.1 mln vs 11.0 mln
    NOTE:1985 net includes 2.7 mln dlrs gain on disposal of
unit. 1986 includes operations of Dependable Insurance Gruop
Inc.


.I 12141
.C
earn
.W
<I.T.L. INDUSTRIES LTD> 1ST QTR FEB 28 NET.
    TORONTO, March 19 -
    Oper shr loss two cts vs profit three cts
    Oper net profit 301,000 dlrs vs profit 130,000
    Revs 10.5 mln vs eight mln
    NOTE: Dividends on preferred shares 370,000 dlrs vs 51,000
dlrs.
    Oper net excludes gains on tax loss carryforward of 247,000
dlrs vs 118,000 dlrs.


.I 12146
.C
acq
.W
CORROON AND BLACK <CBL> COMPLETES ACQUISITION.
    NEW YORK, March 19 - Carroon and Black Corp said it
completed the acquisition of <Poggi-Harrison Agency Inc> and
<Risk Control Inc>.
    Terms of the acquisitions were not disclosed.
    Separately, Carroon said it also completed the acquisition
of <Rosskopf, Rapp and Schmidt Insurance Agency>, based in El
Monte, Calif.


.I 12147
.C
earn
.W
TULTEX <TTX> INCREASES DIVIDEND.
    MARTINSVILLE, Va., March 19 -
    Qtly div nine cts vs eight cts prior
    Payable July one
    Record June 12


.I 12153
.C
acq
.W
BENETTON OF ITALY SEES EXPANSION, ACQUISITIONS.
    NEW YORK, March 19 - <Benetton SpA> of Italy expects to
further diversify into financial services and is weighing 
possible acquisitions, a Benetton spokeswoman here said.
    "We are thinking of diversification outside of the retail
line," the spokeswoman said. "We are looking at financial
services and other manfacturing companies."
    However, she said the company was not targeting the U.S.
for its planned expansion, but was looking at a number of
different countries.
    The company's shares are traded in the U.S. as American
Depository Receipts, which were issued through an offering by
Morgan Stanley Group Inc <MS> earlier this month.
    Benetton is now holding talks with Wall Street firms about
the possibility of receiving a quotation of its shares on the
New York Stock Exchange. "There's absolutely no timetable. It
may not even happen," the spokeswoman said.
    She also denied reports that the company was considering an
issue of convertible bonds with warrants in the U.S. "We're not
thinking of issuing bonds," she said.
    In line with its planned Global expansion efforts, Benetton
is also holding talks with the Soviet Union to explore the
possibility of opening up to 150 stores in the country. But the
spokeswoman pointed out that many companies are holding talks
with the Soviets.
    "We are in discussions and are looking forward to some
response," she said. She added the company had no firm
timetable on when a response might be received.



.I 12157
.C
earn
.W
TULTEX CORP <TTX> 1ST QTR FEB 28.
    MARTINSVILLE, VA, March 19 -
    Shr 23 cts vs 28 cts
    Net 4.3 mln vs 5.1 mln
    Revs 64.5 mln vs 67.1 mln
    NOTE:1986 reflects two for one stock split, effective July
31


.I 12158
.C
earn
.W
FEDERATED FIN'L SAVINGS <FEDF> INITIAL PAYOUT.
    MILWAUKEE, WIS., March 19 - Federated Financial Savings
said it declared an initial quarterly dividend of 85 cts a
share April 27, record April 13.
    This is the first dividend paid by Federated since its
conversion to a stock company from a mutual on Jan 28, 1987.


.I 12160
.C
acq
.W
REXNORD <REX> SEES MAY MERGER WITH BANNER <BNR>.
    MILWAUKEE, WIS., March 19 - Rexnord Inc said it expects to
merge with a wholly-owned subsidiary of Banner Industries Inc
in early May.
    Late last month, Banner said it completed a tender offer
for and held 96 pct of Rexnord's common shares.


.I 12163
.C
earn
.W
<BURKE-PARSONS-BOWLBY> CORP SETS REGULAR PAYOUT.
    RIPLEY, W. Va., March 19 -
    Qtrly div three cts vs three cts prior
    Pay May 15
    Record April 24


.I 12166
.C
acq
.W
WARBURG BEGINS TENDER OFFER FOR SYMBION <SYMB>.
    SALT LAKE CITY, March 19 - Symbion Inc said <Warburg, 
Pincus Capital Co L.P.> began a tender offer to purchase up to
2.5 mln shares, or about 33 pct, of Symbion's shares at 3.50
dlrs per share. Warburg already owns about 26 pct of Symbion.
    Symbion has 7,472,000 shares outstanding. The company makes
artificial hearts.
    Symbion said its board and management are carefully
reviewing the offer and on or before March 30 will advise its
shareholders on whether it accepts or rejects the offer. If the
tender offer is successful, Warburg wll own about 59 pct of
Symbion.


.I 12169
.C
earn
.W
******SEAGRAM CO LTD YEAR SHR 4.45 DLRS VS 3.44 DLRS.
Blah blah blah.

.I 12172
.C
earn
.W
L'AIR LIQUIDE <AIRP.PA> YEAR ENDED DEC 31.
    PARIS, March 19 -
    Parent company net profit 754.45 mln francs vs 674.1 mln.
    Dividend 19.50 francs vs same.
    NOTE - Company said the dividend would apply to shares
issued under capital increases during 1986. This means a 32 pct
rise in total dividend payments to 528.14 mln francs on 1986
results from 399.62 mln the previous year.


.I 12173
.C
earn
.W
MODULAIRE INDUSTRIES <MODX> 4TH QTR LOSS.
    SAN FRANCISCO, March 19 -
    Shr loss 12 cts vs profit 37 cts
    Net loss 350,738 vs profit 1,095,991
    Revs 18.8 mln vs 15.8 mln
    Year
    Shr profit 28 cts vs profit 1.29 dlrs
    Net profit 831,901 vs profit 3,000,716
    Revs 60.6 mln vs 48.2 mln
    Avg shrs 2,996,903 vs 2,756,596
    Note: Per share date adjusted to reflect 10 pct stock
dividend of March 1986.


.I 12175
.C
alum
.W
KENTUCKY SMELTERS GET RELIEF ON HIGHER RATES.
    NEW YORK, March 19 - Owners of two aluminum smelters in
Kentucky received temporary relief from higher electric rates
after a decision Tuesday by state regulators denying a rate
hike to (Big Rivers Electric Corp) of Henderson, Ky.
    But the owners of the smelters, (National Southwire
Aluminum Co) and Alcan Aluminium Ltd <AL>, said further
viability of the operations would depend in part upon how the
rate case is eventually settled.
    "We're hoping for no rate increases but we can't say for
sure. It's still possible we'll have to close the smelter," a
National Southwire spokesman said. He said there were other
variables to consider in any decision whether to close or
continue the smelter, located in Hawesville, about 60 miles
west of Louisville.
    National Southwire is owned by National Intergroup Inc
<NII>, which holds about 55 pct, and (Southwire Co), which
holds the rest, the spokesman said.
    A spokesman for Montreal-based Alcan said, "The decision is
48 pages long and is in legal-ese, so it certainly will be a
long time before we can make a decision" about what it means
for the Sebree smelter in Henderson, about 100 miles west of
Louisville. "But we're delighted that Big Rivers Electric was
denied the requested rate increase."
    A spokesman for the utility, a cooperative that generates
and wholesales electricity to four distributors, said the
requested increase was 7.5 mln dlrs a year over 1985 rates.
    The Kentucky Public Service Commission, in denying the
increase, asked the utility to meet with creditors, which
include Manufacturers Hanover Corp <MHC> and Irving Bank Corp
<V>, and the smelters, to renegotiate a rate plan, the utility
spokesman said.
    The commission suggested that Big Rivers Electric work out
a flexible rate schedule with the smelters that would index
their electric costs to the price of aluminum, he said.
    "We have always been amenable to try, as far as we can, to
assure that the two aluminum smelters remain viable," he said.
    No meetings are scheduled and none have been planned
between the utility, its creditors and the aluminum plant
owners. The commission has set a hearing on the rate issue for
July 28.


.I 12176
.C
earn
.W
SEAGRAM CO LTD <VO> YEAR JAN 31 NET.
    MONTREAL, March 19 -
    Shr 4.45 dlrs vs 3.44 dlrs
    Shr diluted 4.30 dlrs vs 3.34 dlrs
    Net 423.5 mln vs 319.1 mln
    Sales 3.34 billion vs 2.97 billion
    Avg shrs 95.1 mln vs 92.6 mln
    NOTE: U.S. funds.
    Net includes equity in earnings of Du Pont Co <DD> of 169.1
mln dlrs vs 75.7 mln dlrs and dividend income from Du Pont
shares of 154.1 mln dlrs vs 150.8 mln dlrs.
    Latest year net includes pretax charge 35.0 mln dlrs from
sale of wine operations and reorganization of spirits
operations in U.S. and related reduction in tax expense of 27.7
mln dlrs.


.I 12178
.C
earn
.W
AIR PRODUCTS AND CHEMICALS INC <APD> IN PAYOUT.
    ALLENTOWN, Pa., March 19 -
    Qtly div 20 cts vs 20 cts prior
    Pay May 11
    Record April Three


.I 12179
.C
earn
.W
J.P. STEVENS AND CO <STN> IN PAYOUT.
    NEW YORK, March 19 -
    Qtly div 30 cts vs 30 cts prior
    Pay April 30
    Record April Three


.I 12184
.C
earn
.W
<TIE/TELECOMMUNICATIONS CANADA LTD> 4TH QTR NET.
    MARKHAM, Ontario, March 19 - 
    Oper shr one ct vs six cts
    Oper net 48,000 vs 556,000
    Revs 19.0 mln vs 26.5 mln
    Year
    Oper shr 19 cts vs 46 cts
    Oper net 1,586,000 vs 3,971,000
    Revs 90.8 mln vs 103.1 mln
    NOTE: Previous oper net excludes 404,000 dlrs of
extraordinary expenses for qtr and 991,000 dlr gain for year.
    TIE/communications Inc <TIE> holds 65 pct interest.


.I 12187
.C
earn
.W
PEOPLES SAVINGS BANK <PEBW> RAISES QUARTERLY.
    WORCESTER, Mass., March 19 -
    Qtly div 12 cts vs 10 cts prior
    Pay April 24
    Record April One


.I 12188
.C
earn
.W
DEP CORP DEPC 2ND QTR JAN 31 NET.
    LOS ANGELES, March 19 -
    Shr three cts vs 16 cts
    Net 127,000 vs 605,000
    Sales 14.4 mln vs 9,726,000
    Six Mths
    Shr 17 cts vs 30 cts
    Net 678,000 vs 1,141,000
    Sales 24.6 mln vs 19.2 mln


.I 12189
.C
earn
.W
FEDERAL SIGNAL CORP <FSS>  REGULAR DIVIDEND.
    OAK BROOK, ILL., March 19 -
    Qtly div 20 cts vs 20 cts previously
    Pay June Two
    Record May 12


.I 12190
.C
earn
.W
STATE STREET BOSTON CORP <STBK> SETS QUARTERLY.
    BOSTON, March 19 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 15
    Record April One


.I 12191
.C
earn
.W
MARSH AND MCLENNAN COS INC <MMC> SETS QUARTERLY.
    NEW YORK, March 19 -
    Qtly div 47-1/2 cts vs 47-1/2 cts prior
    Pay May 13
    Record April Six


.I 12198
.C
earn
.W
JOHN WILEY AND SONS INC <WILLB> SETS QUARTERLY.
    NEW YORK, March 19 -
    Qtly div Class A 27-1/2 cts vs 27-1/2 cts
    Qtly div Class B 24-1/2 cts vs 24-1/2 cts
    Pay April 10
    Record April Three


.I 12199
.C
crude
.W
API SAYS U.S. CRUDE OIL OUPUT OFF FROM YEAR AGO.
    WASHINGTON, March 19 - The American Petroleum Institute
said that U.S. crude oil production in February declined 9.8
pct from year-ago levels to about 8.3 mln barrels a day.
    In its monthly report on U.S. oil supplies and stocks, API
said that domestic demand for petroleum products, as measured
by products supplied, continued to rise reaching 16.3 mln
barrels a day in the month, up 1.5 pct from February 1986.
    API noted the drop in crude oil output coupled with a
drop in natural gas liquids production, which was off 11 pct
from February 1986 levels, represented a decline in U.S.
production of more than one mln barrels a day.
    API said the decline in domestic production and the rise in
demand brought petroleum imports to about six mln barrels a day
in February, a 30.3 pct increase from last year's level.
    So far this year, API said growth in domestic demand, which
was up 2.9 pct from last year's year-to-date level, has slowed
in comparison to the accelerated growth in the last half of
1986.
    It said crude oil production for the first two months of
1987 was off 8.6 pct from the comparable year-ago period while
crude imports were up 30.6 pct.


.I 12201
.C
acq
.W
SOLAR SYSTEMS <SSDN>, INKEY OF SPAIN SET PACT.
    MIAMI, March 19 - Solar Systems by Sundance Inc said it
agreed to buy a 45 pct interest in a company that will sell
condoms produced by INKEY SA of Spain.
    It said a spermicide used in INKEY's condoms contains an
ingredient that may help prevent the sexual transmission of
AIDS. The ingredient was cited in an article in the West German
publication, Aids Forschung. But it said the article was
about the ingredient and did not mention the spermicide or the
condoms made by INKEY.
    The company also said it is changing its name to
Eurocapital Corp shortly.
    Solar Systems said it was buying the 45 pct stake in a
U.S.-based <Europharmaceutical Co>. INKEY and an affiliate own
the remaining shares of the company, which was set up to
distribute condoms and vaginal products that are made, or are
being developed by INKEY.
    The agreement calls for a two mln dlr payment to Inkey for
the distributorship. The first 500,000 dlr payment is due 30
days after the products are approved by the Food and Drug
Administration. It said Europharmaceutical plans to soon file
with the FDA to market the condom, but expects the approval
process to be a lengthy one.
    The company said the active ingredient in the spermicide is
currently used in the U.S. in antiseptic applications unrelated
to condoms. As far as it knows, the ingredient has not been
tested in a spermicide.
    Inkey's condoms will be sold in the U.S. under the brand
name, "Carlton." The exclusive distribution contract for the
products runs for three years and is renewable for one-year
periods, the company said.
    It said the condoms are currently sold in Spain but have
not gone on sale in other European countries.
    It said Europharmaceutical currently does not have the
resources to make the payments under the distribution agreement
or fund the studies necessary to obtain marketing approval from
the FDA.
    The company also said Europharmaceutical is in talks to
acquire either one or more publicly held companies with little
or no assets. In the event an acquisition goes through, Solar
Systems' interest in Europharmaceutical would be diluted below
its current 45 pct.


.I 12209
.C
acq
.W
PRIME MEDICAL <PMSI> SAYS MERGER TALKS END.
    NEW YORK, March 19 - Prime Medical Services Inc said merger
talks with National HMO Corp <NHMO> have been terminated.
    Prime gave no reason for the termination of the talks with
National HMO.


.I 12210
.C
earn
.W
FIRST FEDERAL SAVINGS BANK OF MONTANA <FFSM> DIV.
    KALISPELL, Mont., March 19 -
    Qtly div seven cts vs seven cts prior
    Payable April 28
    Record April three


.I 12215
.C
earn
.W
<CCR VIDEO CORP> 1ST HALF FEB 28 NET.
    LOS ANGELES, March 19 -
    Shr profit 10 cts vs loss one ct
    Net profit 647,390 vs loss 75,967
    Sales 2,120,027 vs 1,666,908
    NOTE: Current year net includes 456,004 dlr gain from debt
extinguishment.


.I 12217
.C
rubber
.W
NEW RUBBER PACT TO BE FORMALLY ADOPTED TOMORROW.
    GENEVA, March 19 - A new International Natural Rubber
Agreement (INRA) will be formally adopted tomorrow, chairman of
the negotiating conference Manaspas Xuto of Thailand said.
    "The successful negotiation of the new agreement represents
a significant step forward in international economic
cooperation," he told a news conference. The new INRA is to
replace the current one which expires in October.
    Delegates at the renegotiation conference, held under the
auspices of the U.N. Conference on Trade and Development
(UNCTAD), reached agreement over the central elements of a new
accord last weekend.
    Xuto said the new INRA retains the reference price -- of
201.66 Malaysian/Singapore cents per kilo -- and indicative
prices set in the present pact.
    Price levels will continue to be expressed in the joint
Malaysian/Singapore currency, he added.
    The new agreement also maintains the basic structure of
price ranges -- the "may sell" and "may buy" points at plus and
minus 15 pct of the reference price, as well as the "must sell"
and "must buy" zones at plus and minus 20 pct of it.
    Xuto said the new pact maintains the same objectives that
were set in the present accord. "The most important of these are
to stabilise prices and to achieve a balanced growth between
demand and supply," he said. The buffer stock remains the sole
instrument of market intervention for price stabilisation and
its maximum capacity is unchanged at 550,000 tonnes, Xuto
added.
    At this month's session, which was the fourth attempt in
two years to negotiate a new INRA, the main issue to be
resolved concerned the mechanism for adjusting the reference
price.
    It was agreed to conduct reviews of the reference price
every 15 months -- instead of the current 18-month intervals.
    The extent of the adjustment was also modified.
    Under the present agreement if the daily market indicator
price has been above the upper intervention ("may sell") price
(currently 231 Malaysian/Singapore cents) or below the lower
intervention price ("may buy") price (171 cents at present) for
six months, the reference price is then revised by five pct or
whatever amount the International Natural Rubber Council
decides.
    Under the new pact, the adjustment under these
circumstances will be five pct unless the Council decides on a
higher adjustment.
    Similarly, when buffer stock purchases or sales amount to
300,000 tonnes, there would be an automatic adjustment of three
pct under the new accord unless the Council decides on a higher
percentage.
    Throughout the talks, which began on March 9, producers had
strongly opposed a consumer proposal to lower the reference
price and the "lower indicative price" (or floor price) of 150
cents in the present pact if the buffer stock, currently
360,000 tonnes, reached 450,000 tonnes.
    The proposal, initiated by the U.S., was withdrawn last
Friday, setting the stage for compromise at the weekend.
    Since then negotiators have worked on the finer details of
the new pact.
    On the question of conditions for entry into force of the
new INRA, Xuto said it was tentatively agreed that governments
accounting for 75 pct of world exports and 75 pct of world
imports approved or ratified the new agreement before it became
operational.
    The present agreement had a figure of 80 pct.


.I 12218
.C
acq
.W
INVESTMENT GROUP HAS MOORE-HANDLEY <MHCO> STAKE.
    WASHINGTON, March 19 - A group of New York investment
companies told the Securities and Exchange Commission they have
acquired 173,000 shares of Moore-Handley Inc, or 6.9 pct of the
total outstanding common stock.
    The firms, Robert H. Barker and Co, J.M.R. Barker
Foundation, Quaker Hill Associates L.P., Upland Associates L.P.
and James M. Barker Trust, said they bought the stock for two
mln dlrs soley for investment purposes.
    But the group said it might buy more Moore-Handley shares.


.I 12221
.C
sugar
.W
EC MAY OFFER INTERVENTION SUGAR TO LOCAL MARKET.
    LONDON, March 19 - Sugar which EC producers plan to sell
into intervention may be offered by the European Commission for
sale within the Community, broker C. Czarnikow says in its
latest sugar review.
    The Commission will propose to offer the sugar at a very
nominal premium of 0.01 European Currency Unit (Ecu) to the
intervention price, with detrimental consequences for
producers' returns, Czarnikow says. The move is seen as an
attempt to persuade the producers to take back the surrendered
sugar.
    The Commission may also take other steps to dissuade
producers from their chosen course, such as removing the time
limit on storage contracts, which presently means that
intervention stocks have to be removed by the end of September,
Czarnikow says. There is also the possibility of production
quotas being reduced.
    If the Commission decided to offer the sugar to traders for
export, the restitutions would have to be higher than those at
recent export tenders, Czarnikow notes. To match the difference
between the EC price and the world market price, the extra
costs might be as much as 20 Ecus per tonne, it says.
    The producers might have to repay these costs through
production levies and the proposed special elimination levy,
Czarnikow says, but it would be several months before any costs
could be recovered under EC rules.
    The primary cause of the plan to sell 775,000 tonnes of
sugar into intervention in France is dissatisfaction with the
EC export program as the restitution has increasingly failed to
bridge the gap between the EC price and the world market price,
Czarnikow notes. The French move is thus seen as a form of
protest designed to force the Commission's hand.
    In West Germany, 79,250 tonnes have been tendered for
intervention, but Czarnikow says the motive here is to ensure
that the 1986/87 price is paid for sugar that was produced in
1986. In addition to a two pct cut in the intervention price,
West German producers face a further price reduction in July
with a probable revaluation of the "green" mark.
    Even if the immediate crisis is resolved, the problem is
not expected to disappear permanently. It has appeared to
traders for some years that the EC's export policy is
insufficiently responsive to changing patterns of demand, it
says.
    The weekly tenders should respond to fluctuating demand by
increasing or reducing the tonnage awarded, Czarnikow says,
suggesting that the Commission might also take steps to cut
down the amount of "unnecessary bureaucracy" surrounding the
export tender system.


.I 12223
.C
interest
.W
GERMAN BANKS SEE LOW INTEREST RATES CONTINUING.
    BONN, March 19 - The Association of German Cooperative
Banks said in a financial survey that domestic interest rates
would continue to remain low for the time being.
    It said the Bundesbank could hold them down despite strong
foreign influence and it saw no interest-straining factors in
the economy that could affect the long-term capital market.
    The inflation rate of one pct also gave no occasion for
higher nominal interest rates. But a probable rise in inflation
late this year could give very slight grounds for a rise in
nominal rates at year's end and next year, it said.
    The association said generally low interest rates,
prospects of lower taxes, a stable dollar rate and expected
strong domestic demand led it to believe that the investment
climate would remain friendly and the economy would continue
its slow but very sure growth.
    The Bundesbank had managed successfully to keep interest
rates down on the short-term money market although its policies
had exerted little effect on the long-term capital market,
which was so important for investment financing and thus for
the course of the economy, it said.
    In view of the limits to the possibilities monetary policy
had in influencing the longer-term capital market, the
association saw little sense in wanting to boost the economy
through a short-term and expansionist monetary policy.
    On the other hand it also saw no reason for sticking
dogmatically to the money supply target for the whole of 1987.
    The association said time would show to what extent
speculative foreign money and short-term invested domestic
money would distort money supply developments. The Bundesbank
could hold down money market rates with the highly effective
instrument of sale and repurchase transactions, it said.


.I 12224
.C
cocoa
.W
ICCO TO EXAMINE BUFFER STOCK DETAILS TOMORROW.
    LONDON, March 19 - The International Cocoa Council, ICCO,
adjourned for the day after a detailed proposal on buffer stock
rules was distributed and executive committee officials were
elected, delegates said.
    Producers, EC consumers and all consumers are scheduled to
hold separate meetings tomorrow to review the proposal, written
by ICCO executive director Kobena Erbynn, they said.
    The buffer stock working group is to meet again on rules
Monday morning, and the full council is to reconvene Tuesday,
delegates said.
    Heinz Hofer of Switzerland was elected executive committee
chairman and Mette Mogstad of Norway vice chairman, they added.


.I 12225
.C
money-fx
.W
FED'S JOHNSON URGES STRONGER ALLIED GROWTH.
    WASHINGTON, March 19 - Federal Reserve Board Vice Chairman
Manuel Johnson said that the U.S.'s main industrial partners
should expand their domestic growth.
    In a speech to a women's group here, Johnson said, "There is
room for stronger domestic growth in those countries ... strong
enough to absorb growth in U.S. export markets."
    Johnson also said there was a better alignment of exchange
rates now and the Paris agreement to stabilize currencies has
brought western nations a long way towards establishing that
goal.
    Johnson said, "The Fed supports this pattern of exchange
rates ... and we'll see if it leads to a convergence in trade.
Quite possibly it can be achieved."
    Johnson said the Paris agreement achieved a better
alignment of exchange rates in exchange for stimulus by the
major surplus countries.
    He said this was "a major improvement and a step in the
right direction" and added U.S. allies look very strongly to a
U.S. budget deficit cut. "There will always be a potential risk
of breakdown in international cooperation" without a budget
deficit cut.


.I 12226
.C
money-fx;interest;money-supply;
.W
U.K. MONEY DATA MAY EASE RATE CUT, ANALYSTS SAY.
    By Geert Linnebank, Reuters
    LONDON, March 19 - Slower than expected growth in Britain's
narrow M0 money supply measure in February will help spur a
further cut in U.K. Interest rates if a surge in sterling's
value requires such a move, economic analysts said.
    M0, the only targeted money supply measure left after
Chancellor of the Exchequer Nigel Lawson scrapped the official
target for the broad sterling M3 measure in his 1987 budget
speech on Tuesday, fell an adjusted 3/4 to one pct in February.
    On an annual basis, this put M0 growth at four to 4-1/2
pct, in the middle of the 1987 target of two to six pct.
    "The M0 data are much better than we expected," said Robert
Thomas, economist at Greenwell Montagu Securities.
    He and other analysts said while the better than expected
M0 figures alone would not be sufficient to trigger a new
interest rate cut, they removed an obstacle to such a move.
    Thomas noted the rise in M0 had been kept in check despite
buoyant retail sales in February, advancing an adjusted 2.2 pct
after a fall of the same size in January.
    Analysts said the M0 measure, reflecting variations in
consumer demand rather than real inflation prospects, was not
an adequate indicator to determine interest rates.
    "The authorities still seem to want to pretend that M0 is
important ... In practice, it is likely to be the exchange rate
and the election which call the tune," Lloyds Merchant bank
chief economist Roger Bootle wrote in a budget comment.
    Richard Jeffrey, economist at stockbrokers Hoare Govett,
said in a comment: "It is unlikely that (Lawson) will respond to
signals from M0 alone ... Reinforcement from exchange rate
trends is necessary before action is taken."
    "With the Chancellor making clear that policy manoeuvres are
made in response to signals from this narrow money variable,
the City has been forced to take it seriously," he added.
    Noting this point, Thomas said market fears at the end of
last year of an M0 overshoot had now disappeared.
    This removed a potential obstacle to a further cut in U.K.
Base lending rates if foreign demand for sterling pushed up the
pound above unofficial targets, analysts said.
    Such targets are believed to have been secretly agreed
between finance ministers of the Group of Five and Canada at
their Paris meeting last month, they added.
  U.K. Base rates have been cut twice by half a point since the
Paris agreement, once on March 11, and again yesterday when
foreign demand for sterling surged in reaction to a sharp cut
in 1987 government borrowing targets contained in the budget.
    They stand at 10 pct now, and foreign exchange dealers and
analysts expect them to shed another half-point in the coming
week.
    Analysts shrugged off as largely irrelevant a higher than
expected increase in February sterling M3, which pushed the
annual growth rate to almost 19 pct, well above the previous
target of 11 to 15 pct.
    Thomas said the February figures seemed to indicate the
improvement in sterling M3 growth witnessed over the past few
months had been reversed, but firm conclusions could only be
drawn after revised data are released on March 31.
    Some analysts said foreign investors had long ceased to
watch the sterling M3 target, and Lawson's move to scrap it
altogether earlier this week removed whatever was left of its
credibility as a key factor in monetary policy.


.I 12227
.C
cpi
.W
FED'S JOHNSON SEES INFLATION CONTROLLED.
    WASHINGTON, March 19 - Federal Reserve Board Vice Chairman
Manuel Johnson said inflationary pressures are under control
and noted "wage and price pressures are very moderate."
    Johnson told a women's group that the U.S. was not seeing
the kind of cost pressures of the past.
    He said the trade imbalance was a serious trouble spot and
strong protectionist pressures, if translated into policies,
could ultimately lead to higher inflation and a high interest
rate policy by the Fed.


.I 12228
.C
acq
.W
GREYHOUND <G> BUYS GENERAL MOTORS <GM> BUS UNIT.
    PHOENIX, Ariz., March 19 - Greyhound Corp said it has
signed a definitive agreement to buy General Motors Corp's U.S.
Transit Bus and Parts business for an undisclosed sum.
    The agreement, tentatively set in January, includes
production tooling, design and equipment for urban transit
buses, inventories and trademark identification.
    The agreement also incudes the right to buy GM's Canadian
Transit Bus and Parts business, contingent on a satisfactory
labor agreement.
    Greyhound said it will relocate the production facilities,
currently in Pontiac, Michigan, to an undetermined location.


.I 12230
.C
earn
.W
EXCEL BANCORP <XCEL> SETS INITIAL DIVIDEND.
    QUINCY, Mass., March 19 - Excel Bancorp Inc said its board
declared an initial dividend of 10 cts per share, payable April
20 to holders of record on April Six.


.I 12231
.C
lumber
.W
CHAMPION <CHA> TO EXPAND ALBERTA MILL.
    Toronto, March 19 - Champion International Corp, based in
Stamford, Conn., said it will expand its mill in Hinton,
Alberta, at a cost of about 285 mln Canadian dlrs.
    The expansion will double the facility's pulping operation
to 424,000 short tons per year. The mill produces softwood
kraft pulp which is sold to other Champion facilities and on
the open market.
    Champion said it estimates the project will be completed by
the end of 1989.


.I 12232
.C
acq
.W
MARK IV SAYS IT DOES NOT PLAN BAIRD <BATM> BUY.
    WASHINGTON, March 19 - Mark IV Industries Inc <IV>, which
has said it is mulling a bid to seek control of Baird Corp,
said it has no present plans to acquire more than 25 pct of the
company's total outstanding common stock.
    In a filing with the Securities and Exchange Commission,
Mark IV said its top officials told Baird executives at a March
17 meeting that while Mark IV may buy more Baird common stock,
it presently intends to hold it to the 25 pct limit.
    Mark IV, which first disclosed its stake and interest in
Baird on March 10, has reported it holds 391,800 Baird common
shares, or 17.6 pct of the total outstanding.
    Mark IV said it also agreed at the meeting that if it
decides to seek control of Baird, it would be through a
negotiated merger or business combination or through a tender
offer in which Baird would have at least 24 hours notice.
    Baird, in turn, agreed not to take any defensive measures
without giving Mark IV at least 24 hours notice, it said.
    Baird also confirmed that a takeover defense plan it
already has which is triggered by the accumulation of more than
25 pct of its stock, would not be triggered by a tender offer,
Mark IV said. Both parties also agreed to adjourn pending
litigation they have against one another, it added.


.I 12233
.C
earn
.W
HARRIS-TEETER PROPERTIES INC <HTP> SETS PAYOUT.
    CHARLOTTE, N.C., March 19 -
    Qtly div 24 cts vs 24 cts prior
    Pay May Eight
    Record April 17


.I 12234
.C
interest
.W
******CANADA 91-DAY T-BILLS AVERAGE 6.89 PCT, MAKING BANK RATE 7.14 PCT               .
Blah blah blah.

.I 12235
.C
earn
.W
DRESSER INDUSTRIES <DI> SEES RETURN TO PROFIT.
    DALLAS, March 19 - Dresser Industries Inc said it expects
the joint ventures it has entered into and a gradual
improvement in the energy market to allow it to regain
profitability before the end of the current year.
    Dresser earned 9,600,000 dlrs for the year ended October 31
-- after a 95.0 mln dlr gain from a change in accounting and
pension plan curtailment and a 25.3 mln dlr writedown of
oilfield assets.


.I 12236
.C
iron-steel
.W
EC MINISTERS ANNOUNCE PLAN FOR STEEL CLOSURES.
    BRUSSELS, March 19 - European Community (EC) industry
ministers agreed on a plan for voluntary steel plant closures,
drawn up by industry lobby group Eurofer, and calculated to
lead to the loss of about 22,000 jobs.
    The ministers resolved that the proposed closures, which
should bring production capacity more in line with weak demand,
"remain considerably below the surplus in capacity."
    They asked the EC Executive Commission to consult with
Eurofer, major steel companies and with governments, to
pinpoint scope for further capacity reductions beyond the
annual 15.26 mln tonnes identified by Eurofer.
    The Commission will draw up a new system  of steel
production quotas to protect vulnerable EC firms from the full
rigors of open competition.
    Commission sources said any new system would cover only
heavy products representing about 45 pct of the market, instead
of 65 pct under the present system.
    Ministers hope to approve a closure program when they meet
again in Brussels on June 1, the sources said.
    Industry Commissioner Karl-Heinz Narjes told ministers
capacity was 30 mln tonnes in excess of requirements and that
this excess ought to be eliminated by the end of 1990.


.I 12239
.C
wheat;grain;
.W
U.S. GRAIN TRADE CALLS SHULTZ REMARK SIGNIFICANT.
    by Maggie McNeil, Reuters
    WASHINGTON, March 19 - A statement yesterday by Secretary
of State George Shultz after he met with wheat growers that
U.S. agricultural products must be competitively priced was
significant in that he recognized the importance of the Soviet
market and the need for U.S. prices to be at world market
levels, U.S. grain trade industry officials said.
    They said that Shultz's comments, while not explicitly
endorsing subsidized wheat sales to the USSR, were noteworthy
because they were not negative towards such action.
    In response to a query on what the State Department's
position is on selling subsidized wheat to Moscow, Shultz told
the leaders of the National Association of Wheat Growers that
prices must be competitive if the U.S. is going to trade.
    The Soviet Union, the world's largest grain importer, has
bought no U.S. wheat for more than a year, complaining the
price was far above world market levels. A U.S. offer last fall
to sell the Soviets lower-priced wheat through the export
enhancement program, EEP, was also rebuffed due to the price.
    Shultz was said to be adamantly against the U.S. wheat
offer last year and has been reported to be one of the major
obstacles in making another subsidy overture to the Soviet
Union, grain industry sources said.
    Intense speculation the U.S. might make a fresh EEP wheat
offer to the Soviets has boosted grain prices significantly in
recent trading sessions. Kansas City hard wheat futures rose
another 2-1/4 cents by midday at 2.88-1/4 dlrs per bushel,
while CBT March wheat was up 1-1/2 cents at 2.92-1/2 dlrs.
    "I'm not sure this is an about-face, but it's clearly a
recognition that unless we're competitive, we won't sell to the
Soviet Union," said a lobbyst for a major commodity group.
    "We have to be competitive. It's ridiculous to say that
somebody is going to buy your product if they can get the same
thing at a lower price somewhere else," Shultz told the farm
leaders. "That is our approach in negotiations with the
Soviets," he said.
    If those comments do signal that the State Department is no
longer opposed to the U.S. selling wheat to the USSR under EEP,
it certainly improves the chances for an EEP wheat offer to
Moscow, an industry lobbyst said.
    National Wheat Grower's officials were taking a cautious
attitude towards the secretary's comments.
    "His comments were not discouraging, but they didn't in our
judgment promise any immediate action on EEP," an official with
the wheat group said.
    The Wheat Growers official noted, however, that "there is
significance in that fact that we haven't seen any significant
negative commentary on the idea of EEP wheat to the Soviets."
    In a meeting with exporters this week, Secretary of
Agriculture Richard Lyng refused to comment on their request
that the administration offer subsidized wheat to Moscow, the
officials said.
    An aide to USDA undersecretary Daniel Amstutz, who is
reported to be strongly opposed to EEP wheat to the Soviets,
said that the Shultz comments "are consistent with what he
(Shultz) has taught for years as an economist," but said they
don't necessarily relate to the Soviet Union.
    Amstutz could not be reached for comment, and an aide to
Lyng said Lyng would not comment on Shultz's statements.
    But trade sources were hopeful that the Shultz comments may
indicate some movement towards EEP wheat to Moscow.
    "If he didn't say no, then there's a chance. This is
potentially a positive development," a commodity source said.


.I 12242
.C
earn
.W
******NYNEX INCREASES QTRLY DIV TO 95 CTS FROM 87 CTS end of body.
Blah blah blah.

.I 12243
.C
earn
.W
BURNUP AND SIMS INC <BSIM> 3RD QTR JAN 31 NET.
    FORT LAUDERDALE, Fla., March 19 -
    Shr profit five cts vs loss 40 cts
    Net profit 669,000 vs loss 4,256,000
    Revs 46.1 mln vs 43.8 mln
    Avg shrs 13.9 mln vs 10.5 mln
    Nine mths
    Shr profit 42 cts vs loss 23 cts
    Net profit 5,529,000 vs loss 2,219,000
    Revs 152.2 mln vs 139.6 mln
    Avg shrs 13.3 mln vs 9,489,000
    NOTE: Current year net both periods includes 1,800,000 dlr
gain from sale of property.


.I 12244
.C
earn
.W
AARON BROTHERS ART MARTS INC <AARN> 4TH QTR NET.
    CITY OF COMMERCE, Calif., March 19 - Qtr ended Jan 31
    Shr 48 cts vs 38 cts
    Net 1,171,000 vs 794,000
    Revs 15.6 mln vs 14.0 mln
    Year
    Shr 85 cts vs eight cts
    Net 1,831,000 vs 266,000
    Revs 50.4 mln vs 46.5 mln


.I 12245
.C
earn
.W
QUAKER STATE <KSF> ARRANGES 100 MLN DLR CREDIT.
    OIL CITY, Pa, March 19 - Quaker State Oil Refining Corp
said it signed a 100 mln dlr revolving credit and term loan
agreement with a group of six banks, for which Mellon Bank N.A.
is agent.
    The four-year arrangement has an additional four-year term
loan amortization agreement, Quaker said.
    Quaker said the credit line will be used to finance
expansion plans. Quaker's total capital spending program for
1987 is expected to exceed 125 mln dlrs, it said. In 1986, the
company's capital spending totaled 71.0 mln dlrs.
    Quaker also said costs of new store openings and new
product introductions will depress earnings in the first half.
For the first half of 1986, Quaker reported net income of 26.0
mln dlrs on sales of 473.5 mln dlrs.
    In the first two months, Quaker opened about 25 new stores.
It said it expects to add 150 Minit-Lube fast lubrication
service centers in 1987 at a cost of 75 mln dlrs.
    The company said it is optimistic it will recover in the
second half and report higher earnings for full year fiscal
1987. The company reported net income of 50.3 mln dlrs on sales
of 899.1 mln dlrs for 1986.



.I 12249
.C
grain;corn;
.W
EC TO ABOLISH TAX ON SPANISH MAIZE EXPORTS.
    BRUSSELS, March 19 - The European Community Commission has
decided to abolish a special tax of eight Ecus per tonne
imposed on exports of Spanish maize, Commission sources said.
    They said the tax, which applies to Spanish sales to EC and
non-EC countries alike, would no longer be required on exports
from Spanish ports south of Valencia.
    The decision was taken at a meeting of the authority's
cereals management committee today.
    The tax had been introduced last September at the same time
as a subsidy of eight Ecus per tonne was brought in for exports
of maize to Spain from other EC member countries.
    The aim of the tax was to prevent the maize imported into
Spain from the other EC states with the help of subsidies from
being reexported back to them.
    The sources added that Spain had received no answer from
the committee to its request that tenders be opened for the
sale to third countries of 450,000 tonnes of maize.
    The request will be considered at the committee's next
meeting, the commission sources said.
    Madrid estimates that it needs to import 1.7 mln tonnes of
maize this year, while an EC-U.S. accord guarantees non-EC
producer sales to Spain of two mln tonnes of maize and 300,000
tonnes of sorghum annually for the next four years.


.I 12250
.C
acq
.W
GREAT <GAMI> TO BUY STANDARD<SRD> UNITS' ASSETS.
    CHICAGO, March 19 - Great American Management and
Investment Inc said its 80 pct-owned subsidiary agreed to buy
certain assets of two subsidiaries of Standard Oil Co, for 40
mln dlrs and the assumption of certain liabilities.
    Great American Industrial Group Inc agreed to acquire all
the U.S. and United Kingdom assets of Pfaudler Co and the stock
of certain Brazilian, Mexican, and West German subsidiaries of
Kennecott Mining Corp, it said. Pfaudler and Kennecott are
subsidiaries of Standard Oil.


.I 12251
.C
earn
.W
KMS INDUSTRIES INC <KMSI> YEAR NET.
    ANN ARBOR, MICH., March 19 -
    Oper shr three cts vs three cts
    Oper net 511,000 vs 550,000
    Revs 19.7 mln vs 17.7 mln
    Avg shrs 15,777,000 vs 16,074,000
    NOTE: Earnings exclude gains from utilization of tax loss
caryforwards of 398,000 dlrs, or three cts a share vs 455,000
dlrs, or three cts a share


.I 12252
.C
earn
.W
******WICKES COS INC 4TH QTR SHR LOSS TWO CTS VS PROFIT 14 CTS.
Blah blah blah.

.I 12254
.C
earn
.W
TO-FITNESS <TFIT> IN DISTRIBUTION DEAL.
    BAY HARBOR ISLAND, Fla., March 19 - To-Fitness Inc said it
has been named exclusive Florida distributor for the hardpack
version of the frozen dessert Tofutti by Tofutti Brands Inc
<TOF>, replacing Pillsbury Co's <PSY> Haagen Dazs.


.I 12255
.C
acq
.W
FIRST FINANCIAL <FFMC> BIDS FOR COMDATA <CDN>.
    ATLANTA, March 19 - First Financial Management corp said it
has offered to acquire Comdata Network Inc for 18 dlrs per
share in cash and stock, or a total of about 342.7 mln dlrs.
    The company said for each Comdata share it would exchange
half a First Data share and enough cash to bring the total
value up to 18 dlrs per share, provided that the market price
of First Financial stock were not less than 28 dlrs per share.
    It said the cash payment would be based on the average
market price of First Financial during a period shortly before
closing.
    First Financial said it would not pursue the offer if
Comdata's board rejected it.  Comdata has already agreed to be
acquired by a partnership for either 15 dlrs a share in cash or
at least 10 dlrs in cash and uniuts of securities.
    The partnership that made the first offer for Comdata was
Welsh, Carson, Anderson and Stowe.  Comdata had previously
entered into an agreement, which collapsed, for a repurchase of
six mln shares at 14.50 dlrs each and for the sale of one mln
shares by a director to <Mason Best Co>. Mason Best already
owns 1,800,000 Comdata shares.
    A group led by <Rosewood Financial Inc> has also disclosed
ownership of 6.2 pct of Comdata's 19.0 mln shares outstanding
and said it might seek to increase its interest to over 15 pct.
    The company said Comdata shareholder approval would also be
required for its proposal.


.I 12257
.C
acq
.W
POP RADIO <POPX> GETS RITE AID <RAD>.
    NEW YORK, March 19 - POP Radio Corp said it has signed a
seven-year agreement to provide Rite Aid Corp with in-store
customized disc jocky-hosted radio programs, resulting in an
increase of more than 50 pct in the total number of stores POP
now has under contract.
    Value was not disclosed.


.I 12259
.C
earn
.W
ALLIANCE FINANCIAL CORP <ALFL> DIVIDEND SET.
    DEARBORN, MICH., March 19 -
    Qtly div 22 cts vs 22 cts previously
    Pay April 15
    Record March 31


.I 12262
.C
earn
.W
NYNEX <NYN> INCREASES QTRLY CASH DIVIDEND.
    NEW YORK, March 19 - Nynex Corp said it is raising its
quarterly dividend to 95 cts from 87 cts payable May 1, 1987,
to shareholders of record March 31.
    The company said this was the third consecutive year it has
raised its quarterly cash dividend. It added it had a
two-for-one stock split in May 1986.


.I 12265
.C
acq
.W
VULCAN <VUL> WITHDRAWS JONES/VINING <JNSV> BID.
    CINCINNATI, March 19 - Vulcan Corp said it was
discontinuing its efforts to negotiate a purchase of the common
stock of Jones and Vining Inc.
    On February 6, Vulcan, a Cincinnati maker of shoe lasts and
other products, offered five dlrs a share for all of Jones and
Vining common, subject to certain conditions.
    Vulcan said it is dropping the proposal because it believes
subsequent actions by Jones and Vining are hostile and Vulcan
is only interested in a friendly transaction.
    Jones and Vining makes shoe lasts and shoe components. It
has about 3.7 mln shares outstanding.


.I 12266
.C
acq
.W
TEMPO <TPO> TO SELL CABLE SYSTEMS TO EAGLE.
    TULSA, Okla., March 19 - Tempo Enterprises Inc said it
signed a letter of intent to sell seven cable television
systems, representing about 5,000 subscribers, to <Eagle
Cable>.
    Terms of the acquisition were not disclosed.


.I 12267
.C
acq
.W
ERBAMONT <ERB> ACQUIRES ANTIBIOTICOS S.A.
    STAMFORD, Conn., March 19 - Erbamont N.V. said its major
shareholder <Montedison SpA>, which owns 85 pct of its common,
and Farmitalia Carlo Erba, its 75 pct owned subsidiary, have
acquired <Antibioticos S.A.> and related subsidiaries.
    Terms of the acquisition were not disclosed.


.I 12268
.C
crude
.W
UK CROSS FIELD PRT RELIEF FAVOURS SMALLER FIELDS.
    LONDON, March 19 - The "cross field allowance" relief on
Petroleum Revenue Tax (PRT) announced by U.K. Chancellor of the
Exchequer Nigel Lawson this week will favour smaller non-PRT
paying fields, according to stockbrokers Wood Mackenzie and Co.
    The cross field allowance offsets up to 10 pct of
qualifying spending on a new oil field against PRT liability of
other fields. It is restricted to new offshore developments
outside the southern basin and yet to gain Annex B approval.
    A report by the stockbrokers said that on a new field not
paying PRT due to its small size, the relief would directly
benefit in PRT saving on an existing field.
    "The cross field allowance will mainly benefit participators
in those fields which have no PRT liability," the report said,
adding that the timing of development of such fields may be
advanced.
    The government would in effect be subsidising these
developments at 7.5 pct of capital expenditure before
corporation tax, the report said.
    On fields likely to pay PRT in the future, the benefit is
of timing. Although liabilities on other existing fields will
be reduced immediately, liabilities on larger new fields will
rise in the future due to the loss of offsets, it said.
    In a study on probable fields, the report said that when
the rates of return are examined, the rise for a PRT-paying
field such as Miller, the largest undeveloped oil field in the
U.K. North Sea, is from 18.7 to 19 pct, while the rise for a
small non-PRT paying field such as Kittiwake is 15.9 to 17.9
pct.
    The report added that in fields which pay PRT, there will
be a cost in being able to have this early relief. Not only
will these costs be unavailable for offset against the field's
future profits, but uplift of some 35 pct on these costs will
be lost.
    Thus, a saving of PRT of 100 when field development starts
will have to be matched by a rise in PRT of 135 at a later
time.


.I 12269
.C
oilseed;soybean;
.W
CONGRESSMEN URGE U.S. SOYBEAN PROGRAM CHANGES.
    WASHINGTON, MARCH 19 - Several leading farm-state
Congressmen said they will press the U.S. Agriculture
Department to implement some kind of marketing loan to make
soybeans exports competitive while protecting farm income.
    Speaking at a House grains subcommittee hearing, chairman
Dan Glickman, D-Kan., proposed that Congressmen and
representatives of soybean growers meet with USDA on the
subject in the next two weeks.
    "Let's see if we can try to push them (USDA) to do
something without legislation," Glickman told the hearing.
    The current soybean loan rate effectively is 4.56 dlrs per
bushel with no income protection, or marketing loan.
    David Haggard, American Soybean Association, ASA, president
said USDA must make changes in the soybean program.
    The current soybean program "gave us the worst of both
worlds," ASA's Haggard told the hearing. The 1987 loan rate is
too high relative to corn and is encouraging an expansion of
soybean production in South America, he said. At the same time,
the U.S. soybean loan rate is too low to provide any income
support for soybean farmers, Haggard said.
    "We need some kind of market loan," he added.
    The 1985 farm bill provides authority for the Agriculture
Secretary to implement a marketing loan for soybeans but USDA
so far has resisted pressure to use the authority.
    Representatives of ASA met earlier this month with USDA,
but Haggard said USDA officials gave no indication if they
would seriously consider offering a marketing loan.
    USDA undersecretary Daniel Amstutz yesterday said the
soybean situation is a "dilemna" which has been studied
extensively by the department. But he did not say what, if any
changes, are under consideration.
    In his testimony, Haggard indicated there are ways other
than a marketing loan which should be considered to help
soybean growers, such as a so-called producer option payment,
or a direct payment program.
    Haggard said barring any program changes, Commodity Credit
Corporation, CCC, soybean stocks, now at 385 mln bu, will rise
to 500 mln by the end of August. A further 100 mln bu of
soybeans could be forfeited between September and end-year.
    "Thus, CCC could own the equivalent of Brazil's entire
soybean crop by the end of calendar year 1987," Haggard said.
    However, Haggard said that the U.S. should be cautious in
making soybean program changes that might allow the European
Community to challenge the U.S. program under the General
Agreement on Tariffs and Trade, GATT.
    He noted that The EC imports one quarter of U.S. soybean
production and loss of that market would be devastating.
    The Reagan administration has given "mixed signals" on
whether it believes a marketing loan for soybeans could be
successfully challenged in GATT by the EC, Haggard said.
    While the ASA position is to support a 5.02 dlrs per bu
loan rate combined with a marketing loan, Haggard also endorsed
a proposal by Rep. Jerry Huckaby, D-La., which would set a six
dlrs per bu loan rate and apply a marketing loan.
    The Huckaby proposal is also supported by the ranking
Republican on the House Agriculture committee, Rep. Edward
Madigan of Illinois.
    Subcommittee chairman Glickman endorsed the need to take
some action on soybeans, but cautioned that the marketing loan
could mean a substantial increase in budget costs.
    Glickman noted that the Agriculture Committee must cut one
to 1.5 billion dlrs from its fiscal 1988 budget and therefore
must fit any soybean program changes into the overall budget.
    Haggard said at a soybean loan rate of six dlrs per bu
combined with a marketing loan, the U.S. soybean price might
fall to four dlrs per bu initially. This would cost the
government a maximum of two billion dlrs. But he said the costs
would decline as market prices recovered.


.I 12270
.C
orange
.W
RAISE IN BRAZIL FCOJ EXPORT PRICES NOT CONFIRMED.
    ****RIO DE JANEIRO, March 19 - There is no confirmation
that Brazil's major processors of Frozen Concentrated Orange
Juice, FCOJ, will raise export prices of the product to 1,375
dlrs per tonne from April 1, a spokesman for the Brazilian
Association of Citrus Juice Industries (Abrassuco) said.
    Asked to comment on a report from New York that Cutrale and
Citrosuco had sent telexes to customers informing of the price
raise, Jose Carlos Goncalves said Abrassuco was not aware of
it.
    "All we know is that Cacex has increased the dollar amount
to translate FOB price to ex-dock New York price to 1,050 dlrs
from 770 dlrs," Goncalves said.
    Citrosuco and Cutrale officials were not available for
comment.


.I 12271
.C
earn
.W
ALDEN ELECTRONICS <ADNEA> SETS LOWER DIVIDEND.
    WESTBOROUGH, Mass., March 19 - Alden Electronics Inc said
its board declared an annual dividend of 15 cts per share on
Class A and B common stock, down from 25 cts last year due to
an expected drop in earnings for the year ended March 28.
    The dividend is payable April 15 to holders of record on
April 3.
    Alden earned 1,357,000 dlrs last year.


.I 12272
.C
earn
.W
WICKES COS INC <WIX> 4TH QTR LOSS.
    SANTA MONICA, Calif., March 19 -
    Shr loss two cts vs profit 14 cts
    Net loss 2,515,000 vs profit 28,569,000
    Sales 1.41 billion vs 885.2 mln
    Avg shrs 239.2 mln vs 104.4 mln
    Year
    Shr profit 33 cts vs profit 47 cts
    Net profit 83,750,000 vs profit 76,130,000
    Sales 4.77 billion vs 2.81 billion
    Avg shrs 198.8 mln vs 98.3 mln
    Note: Current qtr and year figures include gains on
securities sales of 3.9 mln dlrs and 38 mln dlrs, respectively.
    Prior qtr and year figures include gain on securities sales
of 3.9 mln dlrs.
    Current qtr and year figures include extraordinary loss of
6.9 mn dlrs and gain of 9.9 mln dlrs, respectively.
    Prior qtr and year figures include operating loss
carryforward gains of 7.6 mln dlrs and 35.5 mln dlrs,
respectively.
    Prior qtr and year figures include gains from discontinued
operations of 6.6 mln dlrs and 12.6 mln dlrs, respectively.


.I 12275
.C
acq
.W
AZURE VENTURES TO BUY ADVERTISING UNIT.
    KANSAS CITY, Mo., March 19 - <Azure Ventures Ltd> said it
signed a letter of intent to acquire John Paul Richards and
Associates Inc.
    The company said if the merger is approved by shareholders
of both companies, the shareholders of John Paul Richards would
become majority shareholders, owning 60 pct of the common
stock, of the new public company.


.I 12276
.C
earn
.W
SCOTT <SCOT> DECLARES FIRST PAYOUT.
    RICHMOND, Va., March 19 - Scott and Stringfellow Financial
Inc said it declared its first quarterly dividend of three
cents per share payable April 15 to shareholders of record
April one.


.I 12279
.C
earn
.W
TEXAS COMMERCE <TCB> SEES IMPROVEMENT IN 1987.
    By Julie Vorman, Reuters
    HOUSTON, March 19 - Texas Commerce Bancshares Inc said that
relatively stable oil prices and the bank's planned merger with
Chemical New York Corp <CHL> would help 1987 earnings increase
from last year's profits of 20 mln dlrs.
    Texas Commerce chairman Ben Love, in an interview with
Reuters, did not elaborate on how much the bank expected
earnings to increase.
    "We would anticipate that this year would be an improvement
over last because we are stronger," Love said, referring to
Texas Commerce's pending 1.19 billion dlr merger with Chemical.
The merger, which may be finalized as early as May 1, will
lower Texas Commerce's cost of funding by an estimated 10 to 15
basis points, Love said.
    The Texas Commerce-Chemical merger is the only acquisition
by a major out-of-state bank since Texas lawmakers approved
interstate banking effective January 1.
    Hard-hit by loan losses in energy and real estate in Texas'
struggling economy, the only major Texas banks able to report
profits in 1986 were Texas Commerce and RepublicBank which
earned 54.0 mln dlrs. Allied Bancshares Inc <ALBN> lost 17.6
mln dlrs, MCorp <M> lost 82.1 mln dlrs, InterFirst lost 326.5
mln dlrs and First City Bancorporation <FBT>, which is actively
seeking a merger or other form of new capital, lost 402.0 mln
dlrs.
    Love said Texas Commerce had turned the corner on its
energy loan portfolio problems, but added that the bank's
nonperforming real estate loans may increase during 1987.
    "I think the tidal wave in energy has passed over us," he
said. "The fact that the real estate market is still moving
away suggests there could be some continuing growth of
nonperforming loans."
    In 1986, about 42 pct of Texas Commerce's net loan losses
related to real estate lending and 13 pct was due to energy
loan losses. That compares to 1985 when only 17 pct of the
bank's losses were in real estate and energy accounted for 43
pct.
    More than half of Texas Commerce's nonperforming loans,
which totaled 968 mln dlrs at yearend 1986, up from 840 mln
dlrs the year before, were in real estate.
    Love said he believed the real estate loan problems for
Texas Commerce and other major state banks would peak by the
third or fourth quarter of 1987. Absorption of empty office
buildings in Houston, which has a current vacancy rate of about
30 pct, will be a gradual process that could take up to four
years, he said.
    "I think we may be beginning to stabilize this economy. Oil
at 18 dlrs a barrel brings much more confidence than 10 dlrs a
barrel," he said.
    Texas Commerce will retain its name as a separate
subsidiary of Chemical and plans to aggressively expand its
holdings throughout Texas, offering additional products to
build up its consumer banking business, Love said. "We are
resuming what we did best for years -- an offensive position,"
he said.
    In January, Texas Commerce acquired a failed bank in
Montgomery County, adjacent to the Houston metropolitan area,
and earlier this month opened a new bank in San Antonio. Texas
Commerce plans to add more banks in San Antonio and in the
Dallas-Fort Worth area where it currently has only 16 member
banks, he said.
    One day after the Texas Commerce acquisition was announced
in December, InterFirst Corp <IFC> and RepublicBank Corp <RPT>,
both headquartered in Dallas, agreed to merge in a deal valued
at 570 mln dlrs.
    The combination of former archrivals RepublicBank and
InterFirst, giving the two banks a virtual lock on the Dallas
banking market, has not changed Texas Commerce's expansion
plans for the state's second-largest city, Love said. "We think
we can try to get a little part of their roost," he said.
    The Chemical partnership will also give Texas Commerce an
edge in developing new consumer products, he said.
    "We have always been a wholesale bank but we have more than
one million customers all over the state. Chemical will show us
how to take advantage of enhancing our consumer products," he
said, referring to expansion of such existing products as
credit cards and investment banking.


.I 12280
.C
coffee
.W
CSCE PUTS ADDITIONAL MARGIN ON JULY COFFEE.
    New York, March 19 - An additional margin of 1,000 dlrs
will be required on all July 1987 delivery coffee "C" contracts
as of the opening of trade Monday, March 23, the Coffee, Sugar
and Cocoa Exchange, CSCE, said.
    The March contract ends trading this week, making May and
July the two "spot," or unlimited, contract months next week.
    Members will then have to obtain a minimum 3,500 dlrs for
net long or net short positions in the May and July contracts,
including a 2,500 original margin plus the additional 1,000 dlr
spot charge.


.I 12283
.C
acq
.W
ODYSSEY FILMPARTNERS <ODYY> DROPS MERGER TALKS.
    BEVERLY HILLS, Calif., March 19 - Odyssey Filmpartners Ltd
said is terminated discussions to acquire <United Color Labs>,
pursuant to a Jan 27 letter of intent for it to buy the company
for stock and cash.


.I 12288
.C
money-fx;trade;
.W
SPRINKEL URGES GREATER GROWTH IN JAPAN, EUROPE.
    BOCA RATON, Fla., March 19 - Beryl Sprinkel, chairman of
the president's council of economic advisors, said stronger
domestic demand growth in Japan and Western Europe is needed to
help stimulate U.S. exports without having to rely on futher
dollar declines.
    "Stronger domestic demand growth in the major foreign
industrial countries is needed to engender the much needed
expansion of U.S. export markets without having to rely on
further dollar depreciation," he told the Futures Industry
Association.
    Sprinkel said the recent recovery of domestic demand in
Japan and Europe has been one of the weakest in the post-war
period.
    "Stronger domestic demand growth in the major industrial
countries would help give balance to the current world
recovery," he said.
    Asked if Japan was not living up to commitments made last
month to trading partners, he said recent figures showed
Japan's economy grew by about 0.5 pct in the fourth quarter of
1986, "Not enough to sustain employment growth."
    However, Sprinkel said Japan had not reneged on its pledges
and was moving toward more stimulative policies, including tax
reform. "I suspect there will be further moves," he said.
    Sprinkel repeated his call for further cuts in U.S.
government spending and for resistance to tax increases.
    "Reducing the federal government budget deficit by
expenditure restraint is needed to preserve the low marginal
tax rates achieved by tax reform," he said, adding that "a vote
to increase to government expenditures is a vote against tax
reform."
    Sprinkel said the fall of the dollar had substantially
restored U.S. cost competitiveness and that the deterioration
of the U.S. trade balance appeared to have abated.
    However, he said that "sole reliance on dollar depreciation
to reduce our trade deficit is not desirable," as it risks
inflation in the United States and recession abroad.
    "I am confident that further improvements in our trade
performance will contribute significantly to growth in 1987," he
said. Improvements in the U.S. trade balance, he said, will
come about largely from a swing in manufactures trade and
present "serious adjustment problems for U.S. trading partners."
    Western Europe, where manufactures output and employment
have been weak, promises to be especially hard hit by the
improvement in the U.S. trade balance, Sprinkel said.
    He defended flexible exchange rates saying wide swings in
rates were not a fault of the system but of the undesirable
policies that produced them.


.I 12292
.C
earn
.W
BROWN TRANSPORT <BTCI> SEES RECORD 1987 NET.
    NEW YORK, March 19 - Brown Transport Co said it expects to
report record 1987 results with revenues increasing to 214 mln
dlrs and earnings per share between 1.25 dlrs and 1.30 dlrs.
    Brown reported 1986 net income of 1.05 dlrs per share, or
5.45 mln dlrs, on revenues of 191.7 mln dlrs.
    Last week the company declared an initial quarterly
dividend of four cts.
    the company said it will begin paying a regular quarterly
dividend in the second quarter but the board has not yet
determined the exact amount.


.I 12294
.C
earn
.W
BOMBAY <CURY> BASES GROWTH ON LOCATION, COSTS.
     DALLAS, March 19 - Bombay Palace Restaurants Inc, with its
emphasis on location and low food costs, expects its 1987 sales
to increase 150 pct to about 22 mln dlrs from about 8.5 mln
dlrs in 1986, according to President Sant S. Chatwal.
     Chatwal told members of the Dallas financial community at
a lunchtime briefing, "we go for prime locations everywhere and
make sure our leases are very favorable."
     As previously announced, the company expects to report
1986 earnings of about 700,000 dlrs, or 31 to 33 cts a share,
on revenues of 8.5 mln dlrs. Chatwal said the final figures
would be released in about two days.


.I 12295
.C
earn
.W
AMERITRUST <AMTR> PROPOSES 2-FOR-1 STOCK SPLIT.
    CLEVELAND, March 19 - AmeriTrust Corp said its board
proposed a two-for-one split of its common, subject to
stockholder approval at its May 14 annumal meeting.
    The company also said it intends to recommend an increase
in its annual regular dividend to at least two dlrs per share
before the split, beginning with the May dividend. The current
annual payout is 1.76 dlr per share.
    AmeriTrust currently has about 20.9 mln shares outstanding
with 25 mln authorized shares. It said shareholders will be
asked to approve an increase in authorized common to 100 mln
shares.
    Ameritrust also said it will submit for shareholder
approval an amendment to the company's charter regarding
liability and indemnification of directors and a recommendation
to create a classified board.
    AmeriTrust's total year-end assets were over 11.1 billion
dlrs.


.I 12298
.C
earn
.W
FIRST FEDERAL OF MICHIGAN <FFOM> DIVIDEND HIKE.
    DETROIT, March 19 -
    Qtly div 12 cts vs 10 cts previously
    Pay May 11
    Record April 10


.I 12299
.C
acq
.W
UNITED JERSEY BANKS <UJB> TO MERGE TWO BANKS.
    PRINCETON, N.J., March 19 - United Jersey Banks said it
plans to merge two of its southern New Jersey member banks into
one 704 mln dlr organization.
    It said United Jersey Bank/Fidelity Bank, based in
Pennsauken, will be merged into United Jersey Bank/South in
order to improve customer service and maximize efficiency
throughout the southern New Jersey markets.
    Raymond Silverstein, currently chairman of the board of
United Jersey Bank/Fidelity, will be chairman of the merged
bank, the company said.


.I 12300
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 900,000 TONNES CORN  SOLD TO THE USSR FOR 1986/87.
Blah blah blah.

.I 12301
.C
earn
.W
HELDOR INDUSTRIES <HLDR> 1ST QTR LOSS.
    MORRISTOWN, N.J., March 19 -Qtr ends Jan 31
    Shr loss 38 cts vs loss 60 cts
    Net loss 1,388,000 vs 2,181,000
    Revs 8,199,000 vs 6,668,000
    NOTE: 1987 qtr includes tax gain 964,000 for insurance
claims.
    1987 qtr also includes non-recurring expense 150,000 for
discontinued operations and consolidation of four distribution
service centers.


.I 12302
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 350,000 TONNES CORN  SWITCHED FROM UNKNOWN TO USSR FOR 1986/87.
Blah blah blah.

.I 12303
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 143,000 TONNES CORN  SOLD TO TAIWAN FOR 1986/87, 1987/88.
Blah blah blah.

.I 12304
.C
acq
.W
TALKING POINT/AMERICAN EXPRESS <AXP>.
    By Patti Domm, Reuters
    New York, March 19 - American Express Co's plan to sell a
stake in its Shearson Lehman Brothers is believed to be a
prelude to a public offering of shares in the brokerage unit,
analysts said.
    American Express earlier said it has a general
understanding with Nippon Life Insurance Co of Japan to sell a
13 pct interest in Shearson for 530 mln dlrs.
    The statement triggered a rise in other brokerage stocks,
as investors speculated on the possibility of more investment
in the U.S. brokerage industry by Japanese concerns.
    The stocks of brokerage firms also climbed in response to
the relatively high value Nippon put on its stake in the U.S.
firm. Analysts said the 530 mln dlrs for 13 pct represents a
price of 2.7 times book value.
    Perrin Long of Lipper analytical said the brokerage stocks,
depressed somewhat by the dark cloud of the U.S. insider
trading scandal, closed out February at a market value of 1.8
times book value.
    American Express was trading today at 78-1/4, off 3/8. For
the last several weeks, the stock has been strong on rumors of
a spinoff of part of Shearson.
    Analysts said American Express and its Shearson unit will
benefit from the doors Nippon Life can open to the increasingly
important Tokyo financial markets.
    "I think this, in all honesty, is a preliminary step," said
Long.
    "What you will see probably in the future is American
Express selling an additional 17 pct in the public market and
have a public vehicle for Shearson," Long said.
    "Normally, investors do not make a major capital commitment
into an illiquid situation," he said of Nippon.
    Some analysts previously speculated a 20 pct stake in
Shearson might be sold to the public. They said the firm, like
other investment banks, needs capital to expand globally.
    American express has said the total employees of shearson
will expand by 20 pct in 1987 internationally. However, that
number is substantially lower than growth last year, a company
spokesman said.
    American Express officials would not comment beyond a
statement made this morning. That statement, however, did not
close off the possibility of a public offering or other option
for Shearson.
    David Anthony, a Smith Barney analyst, said it is possible
Shearson would be partially sold to the public. But he believes
the firm will digest the Nippon investment first.
    "I think they'll figure out what they're going to do with
the money they have," he said.
    Joan Goodman, an analyst with Pershing and Co, also said
American Express could determine to sell shares to the public.
    In its statement, the financial services giant said it is
continuing to study various plans for Shearson in addition to
the investment by Nippon.
    American Express said options under study range from
expanding Shearson's capacity to meet international competition
to broadening its access to capital.
    American Express also said the options reflect the
continuing integral role of Shearson in American Express'
worldwide financial services strategy.
    Shearson follows Goldman, Sachs and Co in finding a
Japanese partner. Goldman last year sold a 12.5 pct stake to
Sumitomo Bank in exchange for a 500 mln dlr capital infusion.
    Analysts speculated there will be more such matches.
    "Those (U.S. brokers) companies have the expertise. They
don't have the money. There's just not enough internal capital
growth," said Wertheim analyst James Hanbury, who follows other
U.S. brokerage companies.
    Hanbury said some Japanese companies, flush with cash, are
interested in the expertise of American brokers. "Those
(Japanese) companies have the capital and our companies have
the capital needs and the growth opportunities to use the
money. That's a nice marriage," he said.
    Morgan Stanley and Co <MS> rose 4-1/4 to 74-7/8. First
Boston Corp <FBC> was up one to 51-1/4. E.F. Hutton Group <EFH>
rose 1-1/4 to 41-1/8, and PaineWebber Group <PWJ> climbed 7/8
to 37-3/4. Merrill Lynch and Co, recommended today by a
PaineWebber analyst, rose 2-5/8 to 45-3/8.


.I 12307
.C
money-fx
.W
ITALIAN PANEL URGES EXCHANGE LIBERALIZATION.
    ROME, March 19 - Liberalization of Italy's foreign exchange
controls should be "gradual" but also "reasonably rapid," a report
issued by a study committee nominated by the Italian Treasury
Ministry said.
   The report, looking at the country's financial development
prospects, said Italy's large public sector deficit and growing
public debt were among the considerations that made a gradual
liberalization preferable.
    The report also favoured retention of the lira's six pct
oscillation band with the European Monetary System (EMS) during
the liberalization process in order to lessen short-term
domestic interest rate fluctuations which could result from
portfolio adjustments.
    The lira's fluctuation margin is currently significantly
higher than that allowed for other EMS currencies.
    Italy has over recent months announced a series of
deregulation moves in response to a European Community
directive aimed at creating a genuine common market in goods,
services and finance by 1992.


.I 12308
.C
grain;corn;
.W
USDA REPORTS CORN SOLD TO USSR, TAIWAN.
    WASHINGTON, March 19 - The U.S. Agriculture Department said
private U.S. exporters reported new sales of 900,000 tonnes of
corn to the Soviet Union and 350,000 tonnes of corn switched
from previously announced unknown destinations to the USSR.
    The corn is for delivery during the 1986/87 marketing year
and under the fourth year of the U.S.-USSR Long Term Grain
Supply Agreement, the USDA said.
    The department said exporters also reported corn sales of
143,000 tonnes for delivery to Taiwan, with 56,000 tonnes for
shipment in the 1986/87 season and the balance for shipment in
the 1987/88 year.
    The marketing year for corn began September 1.
    Sales of corn to the USSR for delivery during the fourth
year of the agreement, which ends this September 30, now total
2.25 mln tonnes.


.I 12310
.C
heat;fuel;naphtha;jet;
.W
CALTEX RAISES SINGAPORE OIL PRODUCT PRICES.
    NEW YORK, March 19 - Caltex Petroleum Corp, a joint venture
between Chevron Corp <CHV> and Texaco Inc <TX>, said it raised
posted prices for several petroleum products in Singapore,
effective today.
     The company said its naphtha posting is up three cts a
gallon to 43 cts. It said it is raising jet and kerosene
postings 2.5 cts, bringing jet to 52.5 cts and kerosene to 51.5
cts.
    Diesel grades are up two cts, Caltex said, bringing both
diesel gas oil (one pct sulfur) and 52-57 D.I. (55 cetane) to
52 cts a gallon, and diesel gas oil (0.5 pct) to 52 cts.
    The company said it is increasing medium and heavy fuel oil
postings by one dlr a barrel. Medium is now 15.50 dlrs a
barrel, and heavy fuel is 14.75 dlrs.


.I 12311
.C
earn
.W
 PENSION INSURANCE GROUP <PGAI> 4TH QTR NET.
    VALLEY FORGE, Pa., March 19 -
    Shr profit two cts vs profit two cts
    Net profit 216,000 vs profit 265,000
    Revs 1,661,000 vs 1,376,000
    12 mths
    Shr profit four cts vs loss two cts
    Net profit 528,000 vs loss 290,000
    Revs 5,881,000 vs 5,541,000
    NOTE: full name of company is pension insurance group of
america inc.


.I 12317
.C
earn
.W
SEA CONTAINERS LTD <SCR> 4TH QTR LOSS.
    HAMILTON, Bermuda, March 19 -
    Shr loss 4.95 dlrs vs loss 75 cts
    Net loss 48.2 mln vs loss 4,644,000
    Revs 133.4 mln vs 135.6 mln
    12 mths
    Shr loss 6.28 dlrs vs profit 2.48 dlrs
    Net loss 67.6 mln vs profit 25.7 mln
    Revs 638.9 mln vs 573.1 mln
    Avg shrs 10,771,260 vs 10,355,728
    


.I 12319
.C
coffee
.W
LATIN COFFEE PRODUCERS SEEK ICO PRICE SUPPORT.
    MANAGUA, March 19 - This weekend's meeting of Latin
American coffee producers here will call for the International
Coffee Organisation (ICO) to start talks aimed at firming
prices, Nicaraguan foreign trade minister Alejandro Martinez
Cuenca said.
    He said those countries which had confirmed their presence
were Brazil, Mexico, Guatemala, El Salvador, Costa Rica and
Panama. Colombia had been invited but he did not know if it
would attend.
    Martinez Cuenca told reporters central america alone had
lost some 700 mln dlrs through the weakness of world coffee
prices, partially caused by lack of an ICO quota agreement.


.I 12320
.C
acq
.W
AMBASSADOR FINANCIAL <AFGI> UNIT TO BUY BUILDER.
    TAMARAC, Fla., March 19 - Ambassador Financial Group Inc
said its Ambassador Real Estate Equities Corp, agreed to buy
Heritage Quality Construction Co Inc.
    Ambassador said its unit would purchase 100 pct of
Heritage's stock for an initial payment of approximately
500,000 dlrs and subsequent payments in cash over a five-year
period equal to 50 pct of the net after-tax profit of Heritage.
    If the acquisition is consummated, Ambassador said it
agreed to contribute 250,000 dlrs to the existing capital of
Heritage.


.I 12321
.C
nat-gas
.W
TRANSCO PARTNERSHIP <TXP> GAS RESERVES RISE.
    HOUSTON, March 19 - Transco Exploration Partners Ltd said
participation in 14 new discoveries increased its proved gas
reserves to 558.1 billion cubic feet in 1986, up from 541.5
billion cubic feet in the previous year.
    Proved reserves of liquids remained about the same at 25.1
mln barrels, the company said in the 1986 annual just released
by Transco Energy Co <E>, the majority owner of the Transco
Exploration partnership.
    Transco said that anticipated oil and gas prices during
1987 would continue to exert pressure on the profitability of
most energy companies.
    The Transco pipeline system reached permanent take-or-pay
settlements on about half its committed gas deliverability and
interim agreements for another 38 pct of its deliverability,
the annual report said. The company said it paid a total of
about 363 mln dlrs to producers through Februry one out of its
550 mln dlr reserve to settle the take-or-pay disputes.
    Transco said its gas pipeline delivered more than 1.2
trillion cubic feet last year and its marketing affiliate sold
an average of 1.6 billion cubic feet of gas per day.
    The company's exploration partnership received an average
price of 1.84 dlrs per mln cubic feet for gas sales during
1986, down from 3.04 dlrs in 1985.
    Sales of oil and condensate averaged 15.86 dlrs per barrel
last year, down from 27.41 dlrs per barrel in 1985.


.I 12323
.C
earn
.W
<ROYAL GOLD AND SILVER CORP> 1ST QTR NET.
    TORONTO, March 19 - ended January 31
    Shr profit two cts vs loss one ct
    Net profit 130,000 vs loss 46,000
    Sales 5,042,000 vs nil
    Note: 1987 includes gain of 112,000 dlrs from sale.


.I 12326
.C
earn
.W
JP STEVENS AND CO INC <STN> SETS PAYOUT.
    NEW YORK, March 19 -
    Qtrly div 30 cts vs 30 cts prior
    Pay April 30
    Record April 3


.I 12332
.C
money-supply
.W
******N.Y. BUSINESS LOANS FALL 572 MLN DLRS IN MARCH 11 WEEK, FED SAYS.
Blah blah blah.

.I 12333
.C
money-supply
.W
******U.S. COMMERCIAL PAPER RISES 2.98 BILLION DLRS IN MARCH 11 WEEK, FED SAYS.
Blah blah blah.

.I 12334
.C
money-supply
.W
NEW YORK BUSINESS LOANS DROP 572 MLN DLRS.
    NEW YORK, March 19 - Commercial and industrial loans on the
books of the 10 major New York banks, excluding acceptances,
fell 572 mln dlrs to 64.297 billion in the week ended March 11,
the Federal Reserve Bank of New York said.
    Including acceptances, loans fell 475 mln dlrs to 65.16
billion.
    Commercial paper outstanding nationally increased 2.98
billion dlrs to 339.00 billion.
    National business loan data are scheduled to be released on
Friday.


.I 12336
.C
crude;nat-gas;
.W
AMOCO <AN> OIL RESERVES DOWN, GAS UP IN 1986.
    CHICAGO, March 19 - Amoco Corp's petroleum liquids reserves
total 2.42 billion barrels at the end of 1986, down from 2.77
billion a year earlier, but its natural gas reserves increased
to 15.37 trillion cubic feet from 15.14 trillion, the company's
annual report said.
    It said the drop in crude oil and natural gas liquid
reserves reflected downward revisions of previous estimates
caused by the sharp drop in oil prices last year. This
accounted for 178 mln barrels of a worldwide downward revision
of 188 mln barrels, with 158 mln barrels of the total revision
occurring in the United States, the report said.
    Amoco said there were upward revisions in the size of its
worldwide gas reserves totalling 404 billion cubic feet last
year, while it discovered 568 billion cubic feet and purchased
298 billion cubic feet of reserves.
    Production of one trillion cubic feet offset much of these
gains, the report said.
    All of the gas reserve purchases, as well as all of the 14
mln barrels of oil reserves bought in 1986, were in the United
States, Amoco said, noting it has spent 1.1 billion dlrs to
acquire U.S. producing properties over the past three years.
    Commenting on 1987, Amoco said acquisitions "will be an
integral part of our strategy, should reserves become available
at attractive prices."
    The company said it expects "the marketing climate for
natural gas to improve in 1987, which should provide the
opportunity for Amoco to expand sales. As prices and demand
improve, we are poised to accelerate capital spending on our
inventory of attractive opportunities."
    Amoco previously announced a 1987 capital spending budget
of 3.2 billion dlrs. Such spending totaled 3.18 billion dlrs
last year, down from 5.31 billion in 1985.


.I 12337
.C
earn
.W
QUEBEC CAISSE EARNS THREE BILLION DLRS IN 1986.
    MONTREAL, March 19 - Caisse de depot et placement du
Quebec, the government agency which manages the province's
pension funds, said its investment portfolio earned a net
profit of almost three billion Canadian dlrs in 1986, an
increase of 300 mln dlrs over 1985.
    The agency said in its annual statement that it had assets
with a total book value of 25 billion dlrs, or a market value
of 28 billion dlrs, at the end of 1986.
    These holdings had a rate of return of 13.5 pct in the
year, which was below the Caisse's average return of 16 pct in
the past four years and 14.2 pct in the past eight years.
    The Caisse said foreign equity investments represented 3.6
pct of total assets, while U.S. government securities accounted
for another 5.2 pct of the overall portfolio.
    The agency's holding of U.S. government securities yielded
a return of 20.7 pct for the year, significantly more than
either the 14.1 pct earned on the total bond portfolio or the
13.5 pct for all funds under management.
    "These high liquidity securities, which are held on a
temporary basis and for purposes of strategy and the protection
of the overall bond portfolio, have been efficient," the agency
said of the U.S. securities.
    The agency said it has 7.9 billion dlrs invested in
Canadian private sector businesses after channeling 965 mln
dlrs of new funds into this area in 1986.
    The Caisse said it acquired 825 mln of new Government of
Quebec bonds and 342 mln dlrs of new securities from other
Quebec government issuers during the year.
   


.I 12338
.C
money-supply
.W
******U.S. M-1 MONEY SUPPLY RISES 500 MLN DLRS IN MARCH 9 WEEK, FED SAYS.
Blah blah blah.

.I 12339
.C
money-supply
.W
******U.S. BANK DISCOUNT BORROWINGS AVERAGE 228 MLN DLRS A DAY IN MARCH 18 WEEK, FED SAYS.
Blah blah blah.

.I 12340
.C
earn
.W
ASEA GROUP <ASEAY> SEES FLAT 1987 EARNINGS.
    NEW YORK, March 19 - Asea Group, the diversified industrial
concern based in Vasteras, Sweden, said it expects 1987
earnings, after financial income and expense, to be flat
compared with 1986, when it earned 2.53 billion Swedish crowns,
or 371.1 mln dlrs.
    A company spokesman said 1986 results were boosted
significantly by the booking of two large orders for nuclear
power plants.
    This gain, he said, will be balanced in 1987 by a return to
profitability by Asea's power transmission segment, which had a
loss of 183 mln crowns, or 26.9 mln dlrs, last year.
    Currency conversions were made at 6.81 crowns to the dlr.
    The spokesman said the company has built up a strong
backlog of orders that will contribute to earnings in 1988 and
beyond.
    At yearend 1986, Asea's order backlog stood at 32.7 billion
crowns, or 4.8 billion dlrs, up from 30.9 billion, or 4.5
billion dlrs, at the end of 1985.
    Asea has operations in power generation and transmission,
transportation equipment, pollution control and robotics.
    Total sales in 1986 were 46 billion crowns, or 6.8 billion
dlrs.


.I 12341
.C
money-supply
.W
U.S. BANK DISCOUNT BORROWINGS 228 MLN DLRS.
    NEW YORK, March 19 - U.S. bank discount window borrowings
less extended credits averaged 228 mln dlrs in the week to
Wednesday March 18, the Federal Reserve said.
    Total borrowings in the week rose 83 mln dlrs to 502 mln
dlrs, with extended credits up three mln dlrs at 274 mln dlrs.
The week was the first half of a two-week statement period. Net
borrowing in the prior week averaged 148 mln dlrs.
    Commenting on the two-week statement period that ended on
March 11, the Fed estimated that banks had daily average net
free reserves of 759 mln dlrs rather than the 660 mln dlrs
first reported.
    A Fed spokesman told a press briefing that there were no
large single day net misses in the Fed's reserve projections in
the first week of the latest bank statement period.
    None of the 14 large money center banks borrowed from the
discount window during the week and all of the Wednesday
borrowing was made by the smallest banks. For the week as a
whole, the borrowing was split roughly evenly between the large
regionals and the small banks.
    Natural float ranged from a low of near zero on Thursday --
for which the Fed spokesman could give no particular reason --
to a high of nearly 750 mln dlrs on Tuesday.
    The Tuesday peak included about 100 mln dlrs of
transportation float in mid- and south-Atlantic states. Noting
that the weather was "basically good" for March, the spokesman
said that transportation float averaged under 500 mln dlrs a
day for the full week.
    Float related as-ofs were a negative 400 mln dlrs on
Wenesday due to a number of unrelated cash letter error
corrections in five districts.
    As-ofs peaked at just over 500 mln dlrs on Tuesday.


.I 12342
.C
money-fx;stg;
.W
LAWSON REPEATS HE IS CONTENT WITH STERLING LEVEL.
    LONDON, March 19 - U.K. Chancellor of the Exchequer Nigel
today repeated that he was satisfied with the current level of
sterling, both against the dollar and the West German mark.
    Lawson said in a television interview that he did not
regard the pound's present exchange rate was uncomfortably
high.
    "I think it is round about right," he said.
    "I think there was a time that they (British manufacturers)
thought the (exchange) rate was uncomfortably high. But I think
they are very satisfied with the present level."
    "But I have made it absolutely clear that I don't want to
see the pound go through the roof," he added.


.I 12345
.C
earn
.W
BUTLER NATIONAL CORP <BUTL> 3RD QTR JAN 31.
    KANSAS CITY, Mo., March 19 -
    Shr profit nil vs loss one ct
    Net profit 1,136 vs loss 42,840
    Revs 1,490,718 vs 1,151,176
    Nine mths
    Shr profit three cts vs profit five cts
    Net profit 89,900 vs profit 150,523
    Revs 4,520,393 vs 4,078,441


.I 12346
.C
acq
.W
FCS <FCSI> RECEIVES MERGER PROPOSAL.
    FLEMINGTON, N.J., March 19 - FCS Laboratories said its
investment banker, Butcher and Singer Inc, received a
preliminary merger proposal from another company in the
healthcare field.
    FCS said that if various aspects of the proposal are better
defined, its board may consider it. FCS said merger
negotiations with this other company have been continuing since
late August.


.I 12350
.C
money-supply
.W
U.S. M-1 MONEY SUPPLY RISES 500 MLN DLRS.
    NEW YORK, March 19 - U.S. M-1 money supply rose 500 mln
dlrs to a seasonally adjusted 738.7 billion dlrs in the March 9
week, the Federal Reserve said.
    The previous week's M-1 level was revised to 738.2 billion
dlrs from 738.0 billion, while the four-week moving average of
M-1 rose to 738.2 billion dlrs from 737.2 billion.
    Economists polled by Reuters said that M-1 would be
anywhere from unchanged to up five billion dlrs. The average
forecast called for a 2.3 billion dlr increase.


.I 12351
.C
earn
.W
ART'S-WAY MANUFACTURING CO <ARTW> 3RD QTR NET.
    ARMSTRONG, IOWA, March 19 -
    Shr profit 58 cts vs loss 11 cts
    Net profit 726,000 vs loss 145,000
    Sales 4,958,000 vs 2,783,000
    Nine Mths
    Shr profit 1.08 dlrs vs loss 80 cts
    Net profit 1,359,000 vs loss 1,013,000
    Sales 12.6 mln vs 7,145,000
    NOTE: Fiscal 1987 net profit includes tax credits of
372,000 dlrs in the quarter and 643,000 dlrs in the nine
months.
    Periods end February 28, 1987 and 1986, respectively.
    Art's-Way Manufacturing Co Inc is full name of company.


.I 12352
.C
earn
.W
PSE INC <POW> 4TH QTR.
    HOUSTON, March 19 -
    Shr loss 18 cts vs profit 11 cts
    Net loss 1.5 mln vs profit 868,000
    Revs 29.3 mln vs 41.1 mln
    Year
    Shr loss 41 cts vs profit five cts
    Net loss 3.1 mln vs profit 409,000
    Revs 99.2 mln vs 231.7 mln


.I 12354
.C
earn
.W
<WARDAIR INTERNATIONAL LTD> YEAR NET.
    TORONTO, March 19 -
    Shr 12.84 dlrs vs 3.07 dlrs
    Net 46,054,000 vs 11,026,000
    Revs 491.1 mln vs 473.9 mln
    NOTE: Current net includes gain of 8.51 dlrs a share on
disposal of assets.
    M.W. Ward holds 62 pct voting interest.


.I 12355
.C
earn
.W
SEA CONTAINERS <SCR> EXPECTS BETTER FIRST QTR.
    HAMILTON, Bermuda, March 19 - Sea Containers Ltd predicted
its first quarter fiscal 1987 net earnings would improve by 10
mln dlrs over the same period a year ago.
    The company said 1987 got off on a much better footing than
fiscal 1986, from which the company recorded a loss of 67.6 mln
dlrs, or 6.28 dlrs per share, on revenues of 641.4 mln dlrs.
    James Sherwood, president of the company, said he expects
to record a loss of approximately 12 mln dlrs for the first
quarter, compared to losses of approximately 22 mln dlrs for
first quarter fiscal 1986.
    The company emphasized the first quarter is a traditionally
slow period for the ferry industry, which is  part of Sea
Containers' business.
    Sherwoood said the company's losses were largely
attributable to non-recurring events and provisions. He cited
the default of 15 container leasees and ship charterers,
costing the company approximately 25 mln dlrs.
    He also cited a 23 mln dlr cost as a result of a closing
two of its subsidiary's ferry services, and a 10.3 mln dlr
provision to cover losses on the sale of container assets and
severance pay costs.


.I 12356
.C
earn
.W
FIRST INTERSTATE <I> ESTIMATES BRAZIL RISKS.
    WASHINGTON, March 19 - First Interstate Bancorp said its
1987 pre-tax income could be reduced by about 33.5 mln dlrs if
it decides to reclassify its 339 mln dlrs in medium- to
long-term loans to Brazil as nonperforming.
    But the company stressed in a filing with the Securities
and Exchange Commission that it believes it is too soon to
reclassify the debt, despite Brazil's Feb 20 suspension of
direct interest payments on medium- and long-term loans.
    "The corporation believes that it is premature to make a
decsion to classify such medium- and long-term debt as
nonperforming at this time," First Interstate said.
    But First Interstate said that if Brazil's suspension of
interest payments continues, it may have to reclassify its
loans as nonperforming and place them on non-accrual, meaning
that interest previously accrued but not paid would be deducted
from net income and interest would no longer be accrued.
    Besides its medium- and long-term debt, First Interstate
said it also has 165 mln dlrs in short-term loans or trade
lines in Brazil.
    As of Dec 31, 1986, nonperforming Brazilian outstandings
were about 4.1 mln dlrs, it said.


.I 12357
.C
earn
.W
AMERICAN HOME SHIELD CORP <AHSC> 4TH QTR NET.
    SANTA ROSA, Calif., March 19 -
    Shr profit 15 cts vs profit 15 cts
    Net profit 1,025,000 vs profit 969,000
    Revs 10.9 mln vs 7.8 mln
    12 mths
    Shr profit 33 cts vs loss one cts
    Net profit 2,375,000 vs profit 90,000
    Revs 38.2 mln vs 20.3 mln
    NOTE: Revenues figure shows contract revenue, not gross
contracts written.
    Fourth quarter and full year 1986 includes extraordinary
gain of 501,000 dlrs and 1,040,000 dlrs, respectively, from tax
loss carryforwards.
    Per share figures come after preferred dividend
requirements.


.I 12360
.C
retail
.W
MAJOR HOME APPLIANCE SHIPMENTS UP IN FEBRUARY.
    CHICAGO, March 19 - Shipments of major home appliances in
February rose 9.1 pct to 3.5 mln, up from 3.2 mln a year ago,
reported the Association of Home Appliance Manufacturers.
    It said year to date, total major appliance shipments rose
11.4 pct to 7.6 mln from 6.8 mln a year earlier.
    It said strong shipment gains in four of the five appliance
categories resulted in the unprecedented monthly levels, with
records set for shipments of refrigerators, automatic washers,
disposers, dryers and dishwashers.


.I 12362
.C
earn
.W
TRIANGLE HOME PRODUCTS INC <THP> 4TH QTR LOSS.
    CHICAGO, March 20 - 
    Shr loss 17 cts vs loss 19 cts
    Net loss 213,000 vs loss 217,000
    Sales 6,788,000 vs 6,254,000
    Year
    Shr loss 22 cts vs loss five cts
    Net loss 270,000 vs loss 61,000
    Sales 27.0 mln vs 27.0 mln


.I 12365
.C
pet-chem
.W
REICHHOLD <RCI> RAISES SOME MATERIALS PRICES.
    DOVER, Del., March 19 - Reichhold Chemicals Inc said its
emulsion polymers division increased by nine cts per dry pound
the prices of all styrene-butadiene and polystyrene latexes,
effective May 1.
    It said the increase is in addition to recently announced
increases and applies to carpet, paper, nonwovens, textiles,
adhesives and other specialty end uses.


.I 12366
.C
acq
.W
TRI-STAR <TRSP> BUYS CINEPLEX THEATER.
    NEW YORK, March 19 - Tri-Star Pictures Inc said it agreed
to acquire the Roosevelt Field Century Theatre from Canada's
Cineplex Odeon Corp's RKO Century Warner Theatres Inc for 17
mln dlrs.
    The recently refurbished and expanded theater is located in
Garden City, N.Y..


.I 12368
.C
earn
.W
FRANK B. HALL AND CO INC <FBH> 4TH QTR LOSS.
    BRIARCLIFF MANOR, N.Y., MARCH 19 -
    Oper shr loss 30 cts vs loss 25 cts
    Oper net loss 2,138,000 vs loss 2,312,000
    Revs 99.3 mln vs 89.4 mln
    Year
    Oper shr loss 40 cts vs profit 47 cts
    Oper net profit 4,294,000 vs profit 8,793,000
    Revs 390.9 mln vs 360.5 mln
    NOTE: Excludes discontinued operations loss of 1.33 dlrs a
share vs 5.35 dlrs a share in the quarter, and loss 1.52 dlrs a
share vs loss 13.64 dlrs in the full year.
    Fourth quarter 1986 includes reserve of nine mln dlrs for
operations company plans to sell.
    Per share figures come after preferred dividend
requirements.


.I 12372
.C
earn
.W
WEISFIELD'S INC <WEIS> 4TH QTR NET.
    SEATTLE, March 19 -
    Shr 1.09 dlrs vs 1.20 dlrs
    Net 1,193,000 vs 1,361,000
    Revs 18.7 mln vs 17.3 mln
    Year
    Shr 1.19 dlrs vs 1.52 dlrs
    Net 1,300,000 vs 1,831,000
    Revs 50.6 mln vs 48.8 mln


.I 12373
.C
money-fx;interest;
.W
SINGAPORE EXCHANGE PLANS OPTIONS CONTRACTS.
    BOCA RATON, Fla, March 19 - The Singapore International
Monetary Exchange Ltd, SIMEX, said it would launch at least two
options on futures contracts this year.
    SIMEX said in a press release that the options contracts
would be based on the currency and interest rate futures
currently traded on the exchange and be started "toward the
third quarter."
    SIMEX, which is linked to the Chicago Mercantile Exchange,
currently trades three currency futures -- on Deutsche marks,
Japanese yen and British pounds -- and two interest rate
futures -- on U.S. Treasury-bonds and three-month Eurodollars.


.I 12375
.C
earn
.W
NORRIS OIL CO <NOIL> DEC 31 YEAR LOSS.
    TAFT, Calif., March 19 -
    Shr loss 1.55 dlrs vs loss 52 cts
    Net loss 13,191,000 vs loss 2,254,000
    Revs 1,179,000 vs 2,003,000
    Avg shrs 8,520,000 vs 4,330,000
    Note: Current year loss includes 11.8 mln dlr writedown of
oil and gas properties under full cost accounting method.


.I 12377
.C
acq
.W
DORSEY <DSY> COMPLETES SALE OF UNIT.
    CHATTANOOGA, Tenn., March 19 - Dorsey Corp said it
completed the sale of substantially all its Dorsey Trailers Inc
subsidiary assets to <Trailer Acquisition Corp>, whose
stockholders include a former Dorsey vice president and several
executives of the Dorsey Trailers management team.
    Terms of the acquisition were not disclosed.


.I 12378
.C
earn
.W
NATIONAL BANCORP INC <NIBCA> YEAR END LOSS.
    HARTFORD, Conn., March 19 -
    Oper shr loss 1.02 dlr
    Oper loss 631,000 dlrs
    NOTE: Prior year results are not available as company
completed its public offering in April 1986.


.I 12379
.C
earn
.W
NAPCO INTERNATIONAL <NPCO> 4TH QTR OPER NET.
    HOPKINS, MINN., March 19 - 
    Oper shr 38 cts vs 5.62 dlrs
    Oper net 400,000 vs 6,173,000
    Revs 1,195,000 vs 392,000
    Year
    Oper shr 94 cts vs 5.65 dlrs
    Oper net 1,006,000 vs 6,257,000
    Revs 2,432,000 vs 1,121,000
    NOTE: 1986 operating net for the quarter and year excludes
a loss on the disposal of certain businesses of 2.15 mln dlrs
and a loss from discontinued operations of 297,000 dlrs in the
quarter and 469,000 dlrs in the year.
    1985 operating net for the quarter and year includes a
pretax gain of nine mln dlrs from the sale of two divisions and
a loss from discontinued operations of 2.85 mn dlrs in the
quarter and 3.7 mln dlrs in the year.
    Napco International Inc is full name of company.


.I 12381
.C
earn
.W
<BACHELOR LAKE GOLD MINES INC> YEAR LOSS.
    MONTREAL, March 19 -
    Shr loss seven cts vs loss 19 cts
    Net loss 497,452 vs loss 1,306,875
    Revs 10.6 mln vs 9.6 mln


.I 12382
.C
acq
.W
SOROS LIFTS KING WORLD <KWP> STAKE TO 8.1 PCT.
    WASHINGTON, March 19 - New York investor George Soros, and
an investment fund he controls, said they raised their stake in
King World Productions Inc to 2,485,510 shares, or 8.1 pct of
the total outstanding, from 1,986,710 shares, or 6.5 pct.
    In a filing with the Securities and Exchange Commission,
Soros said his group bought a net 498,800 King World common
shares between Jan 8 and March 6 at prices ranging fropm 18.924
to 21.203 dlrs a share.


.I 12383
.C
acq
.W
CINEPLEX ODEON BUYING COKE <KO> CINEMA UNIT.
    TORONTO, March 19 - <Cineplex Odeon Corp> said it agreed in
principle to acquire the Walter Reade Organization Inc New York
cinema chain from Coca-Cola Co's Entertainment Holdings Inc
unit for 32.5 mln U.S. dlrs.
    Cineplex said the purchase price consisted of 22.5 mln dlrs
cash and 652,742 Cineplex common shares. The transaction is
subject to fulfilment of certain unspecified conditions and
regulatory and board approvals.
    Walter Reade operates 11 screens in eight Manhattan
locations.


.I 12384
.C
wheat;grain;
.W
SHULTZ NOT OPPOSED TO WHEAT SUBSIDY TO SOVIETS.
    WASHINGTON, March 19 - Secretary of State George Shultz has
decided not to oppose any U.S. wheat subsidy offer to the
Soviet Union and has left the final decision on whether to sell
subsidized wheat to Moscow up to President Reagan and the
Agriculture Department, a State Department official said.
    "Shultz feels like he fought the battle against a subsidy
last summer, and he's not going to the mat again. It's now
basically the USDA who has to make their decisions as to what
they want to do," the official said.
    If USDA decides to go ahead with a subsidy offer to the
Soviet Union, he said, "Shultz will not wage a vigorous
campaign against it. He might not come out in favor of it, but
he won't go to the President and voice his objections."
    In an official statement clarifying Shultz's remarks
yesterday to leaders of the National Association of Wheat
Growers, the State Department said, "Secretary Shultz expressed
his belief that whenever possible, U.S. grain should be
competitive on world markets, including the Soviet Union.
    The Agriculture Department is in the best position to
determine whether consideration should be given at this time to
extending to the Soviets a subsidy under the Export Enhancement
Program."
    Although Shultz will not oppose a wheat subsidy to the
Soviets, there remain obstacles to another subsidy offer to
Moscow, the State Department official said.
    "Everyone in the government agrees that if there is a
subsidy to be offered, we would not offer it unless we had a
firm commitment from the Soviets that they would buy."
    USDA does not want a repetition of last summer when the
USSR baulked at its offer of four mln tonnes of subsidized
wheat, the official, who asked not to be identified, said.
    The Soviets rejected the U.S. offer then on the grounds
that the 13 dlr per tonne subsidy was insufficient to bring
U.S. prices down to competitive levels.
    The Soviets want a higher subsidy offer this time, the
State Department source said.
    "What the Soviets want is something equivalent to the
lowest price being paid by anyone in the world," he said.
    The Soviets argue that they are the best customer of the
U.S. and that they are entitled to the best price, he said.
    Government and commodity sources also said there are
elements in the USDA, most notably undersecretary Daniel
Amstutz, who remain opposed to a wheat subsidy to the Soviets.
    "Subsidized wheat to the Soviet Union is still not a
foregone conclusion," the State Department official said.


.I 12385
.C
earn
.W
<SUMMIT RESOURCES LTD> YEAR NET.
    Calgary, Alberta, March 19 -
    Shr not given
    Net 540,000 vs 1,890,000
    Revs 4.9 mln vs 7.1 mln


.I 12387
.C
earn
.W
GOULDS PUMPS INC <GULD> SETS REGULAR PAYOUT.
    WEST PALM BEACH, Fla., March 19 -
    Qtly div 19 cts vs 19 cts prior
    Pay April 15
    Record April three


.I 12388
.C
acq
.W
HENKEL TO INCREASE STAKE IN CLOROX <CLX>.
    OAKLAND, Calif., March 19 - Clorox Co said <Henkel KGaA> of
Dusseldorf, West Germany, agreed to increase its holdings in
Clorox to 30 pct from the current level of 23 pct.
    Henkel, which also holds a subordinated note convertible
into another 1.7 pct of the company's stock, intends to acquire
the additional shares in the open market over an extended
period of time, Clorox said.
    It also said that, for the foreseeable future, Henkel does
not intend to increase its participation in Clorox above the 30
pct level.


.I 12389
.C
earn
.W
<SIGMA MINES (QUEBEC) LTD> 4TH QTR NET.
    Toronto, March 19 -
    Shr 17 cts vs five cts
    Net 1,442,000 vs 393,000
    Revs 9,771,000 vs 8,052,000
    Year
    Shr 74 cts vs 23 cts
    Net 6,076,000 vs 1,875,000
    Revs 34.9 mln vs 30.3 mln


.I 12390
.C
trade
.W
EC OFFICIAL FAULTS U.S. TRADE BILL.
    LOS ANGELES, March 19 - Sir Roy Denman, Head of the EC
Delegation in Washington, said pending U.S. trade legislation
is a misguided attempt to deal with the nation's trade deficit
and will spark retaliation if passed in its present form.
    "To think that you can deal with a trade deficit by
legislation is a mistake," he told the Foreign Trade
Association here.
    Denman told reporters that possible retaliation, which he
warned of in a letter to House Ways and Means Committee
Chairman Dan Rostenkowski, would not necessarily be on a
product-for-product basis.
    "Retaliation does not have to be matched product to
product," Denman said.
    He said in the case of textiles import restrictions,
however, retaliation would be against U.S. textile exports.
    "Certainly, if restrictions were imposed on European
exports of textiles to the U.S., the Community would be likely
to retaliate with restrictions on U.S. textile exports to
Europe," Denman said.
    He also took exception to U.S. proposals to require
countries with large current account surpluses with the U.S. to
cut those surpluses or face special tariffs.
    "This would conflict with international obligations, throw
a large wrench into the current round of trade negotiations and
could easily boomerang," he warned of the tariff proposals.
    Denman also took exception to U.S. efforts to seek
reciprocity in specific trade sectors.
    "Forcing reciprocity in one sector by imposing barriers
would simply lead to retaliation from the other party," he
said, adding that overall reciprocity can only be achieved by
trading off disadvantages in one sector for advantages in
another.


.I 12394
.C
earn
.W
FRANK B. HALL <FBH> EARNINGS REPORT QUALIFIED.
    BRIARCLIFF MANOR, N.Y., March 19 - Frank B. Hall and Co Inc
said its independent accountants will issue a qualified report
on its financial statements.
    The company said the opinion is the result of ongoing
litigation over its discontinued operations. Earlier it said it
lost 2.1 mln dlrs in the fourth quarter against a loss of 2.3
mln dlrs a year ago before discontinued operations.
    It also said it decided to sell its claims adjusting and
admininistrative operations and its automobile dealer insurance
unit, creating a reserve of about nine mln dlrs in the fourth
quarter 1986 for the sale.
    The company said it will vigorously defend the litigation
arising from the discontinued units.
    It also said it will concentrate on its direct brokerage
and service business.


.I 12395
.C
acq
.W
INTERMARK<IMI> SEEKS MAJORITY PIER 1 <PIR> STAKE.
    WASHINGTON, March 19 - Intermark Inc, which together with
one of its subsidiaries already holds a 43.4 pct stake in Pier
1 Imports Inc, told the Securities and Exchange Commission it
plans to acquire a majority of the company's voting stock.
    Intermark said it already holds 6,839,827 Pier 1 common
shares, or 35.66 pct, and its Pier 1 Holdings Inc holds
1,484,516 shares, or 7.74 pct.
    Intermark said it also has 341,991 shares of Pier 1
preferred stock, or 35.2 pct of the outstanding, while Pier 1
Holdings has 74,225 shares, or 7.6 pct.
         


.I 12396
.C
earn
.W
ELECTRO SCIENTIFIC <ESIO> 3RD QTR FEB 28 LOSS.
    PORTLAND, Ore., March 19 -
    Shr loss 15 cts vs nil
    Net loss 877,000 vs profit 22,000
    Sales 13.5 mln vs 18.0 mln
    Nine mths
    Shr loss 35 cts vs profit 20 cts
    Net loss 2,098,000 vs profit 1,184,000
    Sales 43.5 mln vs 55.9 mln
    (Electro Scientific Industries)


.I 12397
.C
acq
.W
JOSTEN'S <JOS> TO SELL UNIT TO CAREERCOM <CRCM>.
    MINNEAPOLIS, MINN., March 19 - Josten's Corp said it agreed
to sell its proprietary school business to CareerCom Corp, for
20 mln dlrs in cash and about 1.7 mln CareerCom common shares.
    Upon completion of the proposed transaction, Josten's will
own 20 pct of CareerCom's stock, which it intends to hold for
investment purposes, it said.
    Proprietary school sales totaled about 56 mln dlrs and
accounted for less than 10 pct of Josten's total revenue, it
added.


.I 12400
.C
earn
.W
NRM ENERGY CO <NRM> SETS REGULAR PAYOUT.
    DALLAS, March 19 - 
    Qtly cash distribution five cts vs five cts prior
    Pay April 15
    Record March 31


.I 12401
.C
earn
.W
MOTEL 6 LP <SIX> SETS CASH DISTRIBUTION.
    SANTA BARBARA, Calif., March 19 - 
    Qtly cash distribution 30.5 cts vs 18.4 cts prior
    Pay May 15
    Record March 31
    Note: Prior-quarter dividend was an initial payout based on
operations for a partial fourth quarter in 1986.


.I 12403
.C
acq
.W
GROUP HAS 6.4 PCT OF ATLANTIC RESEARCH <ATRC>.
    WASHINGTON, March 19 - A group led by Halcyon Investments,
a New York securities and risk arbitrage partnership, said it
has acquired 486,400 shares of Atlantic Research Corp, or 6.4
pct of the total outstanding common stock.
    In a filing with the Securities and Exchange Commission,
the Halcyon group said it bought the stake for 15.6 mln dlrs
for no specific purpose.
    The group said it has no plans to seek control of Atlantic
Research, which has been sought by Clabir Corp <CLG>, but said
it may buy more stock or sell some or all of what it has.


.I 12404
.C
earn
.W
ULTRASYSTEMS INC <ULS> 4TH QTR NET.
    IRVINE, Calif., March 19 -
    Shr 26 cts vs 18 cts
    Net 2,102,000 vs 1,415,000
    Revs 44.1 mln vs 42.2 mln
    Year
    Shr 21 cts vs 91 cts
    Net 1,678,000 vs 7,105,000
    Revs 155.1 mln vs 149.2 mln
    Note: Current year figures include 10.1 mln dlr writedown
of costs and investments associated with ethanol refinery
project.


.I 12407
.C
acq
.W
TAG GROUP TO CUT VALERO ENERGY<VLO> STAKE.
    WASHINGTON, March 19 - An investor group told the
Securities and Exchange Commission it plans to cut its stake in
Valero Energy Corp to 402,925 shares, or 1.6 pct of the total
outstanding, from 1,522,850 shares, or 6.0 pct.
    The group, led by TAG Group S.A. of Luxembourg, said it
filed with the SEC on Feb 20 a notice that it proposes to sell
1,119,925 shares of Valero Energy common stock.


.I 12408
.C
earn
.W
WESTERN TELE-COMMUNICATIONS <WTLCA> 4TH QTR NET.
    ENGLEWOOD, Colo., March 19 - 
    Oper shr 31 cts vs 34 cts
    Oper net 3,005,000 vs 2,835,000
    Revs 13.1 mln vs 9,478,000
    Year
    Oper shr 1.49 dlrs vs 1.15 dlrs
    Oper net 28.7 mln vs 16.9 mln
    Revs 47.8 mln vs 32.0 mln
    Note: Oper net excludes loss from discontinued operations
of 726,000 dlrs vs gain of 737,000 dlrs for qtr and gain of
581,000 dlrs vs gain of 2,350,000 dlrs for year.
    Note: Full name is Western Tele-Communications Inc.


.I 12409
.C
crude
.W
ECUADOR GETS LOAN TO HELP REPAIR OIL PIPELINE.
    CARACAS, March 19 - The Andean Development Corp (CAF) said
today it is lending 11.7 mln dlrs to Ecuador to help repair 25
miles of oil pipeline destroyed by an earthquake earlier this
month.
    the loan was signed here today in the offices of the
caracas based caf by the corporation's president, galo montano
perez and ecuadorean ambassador antonio parra gil.
    the loan had originally been intended to finance an
expansion of the pipeline, but following the earthquake the
ecuadorean government asked for the terms to be changed so as
to permit their use in reconstruction.
    Ecuador expects oil production to be suspended for four
months as a result of the damage, and has asked Venezuela to
help by supplying 50,000 barrels per day while the pipeline is
repaired.
    The OPEC member has a production quota of 210,000 bpd but
has asked the organization to allow it to produce 310,000 bpd
once the repairs are completed so as to compensate the loss.


.I 12410
.C
acq
.W
HARMON <HRMN> TO BUY RECYCLING FIRM FOR CASH.
    KANSAS CITY, MO., March 19 - Harmon Industries Inc said it
signed a letter of intent to acquire for about 3.5 mln dlrs, a
majority of the stock of SNP Inc, a Portland, Oregon-based
company which has patents to reprocess used railroad ties into
new ties for resale.


.I 12411
.C
earn
.W
SANTA FE ENERGY PARTNERS LP <SFP> QTLY PAYOUT.
    HOUSTON, March 19 - 
    Qtly cash distribution 72 cts vs 72 cts prior
    Pay May 15
    Record March 31


.I 12412
.C
interest;money-supply;
.W
FED DATA SUGGEST U.S. CREDIT POLICY IS ON HOLD.
    by Jeremy Solomons, Reuters
    NEW YORK, March 19 - Latest Federal Reserve data suggest
that the U.S. banking system is flush with reserves going into
a period of traditional tightness and that overall monetary
policy is on hold, economists said.
    "There is ample liquidity.... The Fed is not going to shift
gears at the present time or for at least another month," said
Maria Ramirez of Drexel Burnham Lambert Inc.
    "Technical and seasonal considerations aside, there is
nothing for the (credit) market to get excited about," added
Robert di Clemente of Salomon Brothers Inc.
    Adjusted bank borrowings from the Fed's discount window
averaged only 228 mln dlrs a day in the first week of the bank
statement period ending next Wednesday, compared with 233 mln
and 451 mln in the first weeks of the previous two periods.
    Another sign of abundant liquidity was the upward revision
in banks' net free reserves in the two-week period to March 11
to a daily average of 759 mln dlrs from an estimated 660 mln.
    Finally, a Fed spokesman told a press briefing that the 14
money center banks were absent from the Fed's discount window
for the third week running, with the latest week's borrowing
split between the large regional and the smaller banks.
    While modest open market intervention was apparently enough
to defuse any funding pressures in the first week of the latest
statement period, economists predicted that the Fed would have
to be more aggressive in coming weeks.
    The Fed injected temporary reserves directly and indirectly
on four of the five trading days via system and customer
repurchase agreements.
    "Fed funds will be coming under relatively intense
pressure," said Salomon's di Clemente, noting the approaching
month- and quarter-end and the round of holidays and tax dates
in April.
    "The Fed is faced with a large seasonal adding
requirement," said Ward McCarthy of Merrill Lynch and Co Inc,
who expects a permanent bill purchase next week and a coupon
purchase in early April.
    Economists were also heartened by further signs of a
deceleration in money supply growth, not only in the largely
discredited M-1 gauge but also in the more closely watched M-2
and M-3 aggregates.
    M-1 grew a mere 500 mln dlrs in the week to March nine,
compared with private forecasts of a 2.3 mln dlr rise. Weekly
M-2 and M-3 components also hinted at slower overall growth.
    "The M-1 increase was surprisingly modest and I suspect we
are on our way to another moderate set of M-2 and M-3 figures
for March," said Salomon's di Clemente. Merrill's McCarthy said
they could even come in below the bottom of their respective
target ranges.
    In February, M-2 was 18.2 billion dlrs below its upper
limit and M-3 was 20.8 billion beneath.
    Noting Fed Vice Chairman Johnson's encouraging remarks on
inflation today and recent interest rate cuts overseas, some
economists suggested this slowing in monetary growth could lend
support to calls for further accommodation here.
    "Our belief is that we could still get a move downwards in
rates before anything else," said Salomon's di Clemente, adding
that the key swing factor will continue to be the strength of
the U.S. economy.
    Jeffrey Leeds of Chemical Bank agreed that the economy's
health would remain the main influence on policy but, contrary
to di Clemente, he said that recent signs of faster growth and
inflation could lead to higher rates first.
    Drexel's Ramirez did not commit herself either way, adding
that the next major move may have to wait until April 14 when
February's U.S. trade data are due for release.


.I 12413
.C
ship
.W
U.S. SAYS NO SIGNAL BEING SENT BY SHIP MOVEMENTS.
    WASHINGTON, March 19 - A U.S. Navy battle group led by the
U.S. aircraft carrier Kitty Hawk is in the northern Arabian Sea
amid renewed concern about the safety of shipping off the coast
of Iran, U.S. officials said today.
    But Pentagon spokesman Fred Hoffmann said that reports the
naval strike force was in the region did not mean the United
States was sending a new warning to Iran against escalating
attacks on shipping in the Persian Gulf.
    "Nothing like that has happened," he said. "No signal is being
sent."
    He said that the Kitty Hawk is operating in an area where
it usually does. "It's normal. It's in the waters where it's
supposed to be. It's been there for over a month."
    The Kitty Hawk and its force of warplanes is the mainstay
of the U.S. Indian Ocean Battle Group which patrols a vast area
extending from the Indian subcontinent through the Arabian Sea.
    With the Kitty Hawk and its group in the Arabian Sea to the
south and the U.S. Mideast Task Force in the Persian Gulf to
the north, the United States has 10 warships on either end of
the strategic Straits of Hormuz.
    The Pentagon, as is its custom, declined to confirm the
exact whereabouts of the ships or what they were up to.
    State Department officials cited concern about the safety
of ships passing through the Straits on the vital oil supply
run to the Gulf.
    Iran has conducted repeated attacks on shipping in the Gulf
and U.S. officials have said that Teheran has recently equipped
itself with powerful Chinese and Italian-made anti-ship
missiles, posing a greater threat.


.I 12414
.C
sugar
.W
COSTA RICA SELLS SUGAR TO SOVIET UNION.
     SAN JOSE, March 19 - Costa Rica has agreed to sell more
than 32,000 tonnes of sugar this year to the Soviet Union, a
spokesman for local producers said.
     Miguel Alfaro, president of the agricultural league of the
sugar cane industry, said the sale follows a recent 50 pct cut
in Costa Rica's quota for sugar exports to the U.S.
    Alfaro said up to 45,000 tonnes of sugar could be exported
to the Soviet Union this year under the deal, which is similar
to one the Soviets made recently with the Dominican Republic.
    A Soviet ship will load 25,000 tonnes at the Pacific port
of Punta Morales Monday, Alfaro said, and a second ship will
take an additional 7,107 tonnes two days later.
    Alfaro and other industry sources declined to disclose the
price at which the sugar was sold.


.I 12417
.C
acq
.W
BAYOU INTERNATIONAL BUYS STAKE IN SOLOMECS.
    LOS ANGELES, March 19 - <Bayou International Ltd> said it
purchased one-third of the outstanding stock of Solmecs Corp
N.V., a Netherlands Antilles corporation, for 1,750,000 dlrs.
    Bayou said it will also receive two seats on Solmecs'
board.
    Bayou Ltd is 55.2 pct owned by Australia Wide Industries
Ltd.
    Solmecs develops technology relating to energy conversion.


.I 12418
.C
earn
.W
MICROPRO INTERNATIONAL CORP <MPRO> 4TH QTR NET.
    SAN RAFAEL, Calif., March 19 - Quarter ended Feb 28
    Shr four cts vs seven cts
    Net 500,000 vs 900,000
    Revs 9,200,000 vs 10,500,000
    Year
    Shr four cts vs 12 cts
    Net 600,000 vs 1,500,000
    Revs 17.6 mln vs 20.8 mln


.I 12421
.C
earn
.W
(EXPLOSIVE FABRICATORS INC) 1ST QTR JAN 31 NET.
    LOUISVILLE, Colo., March 19 -
    Net 41,724 vs 120,329
    Revs 1,194,556 vs 1,504,702


.I 12423
.C
sugar
.W
NEW CHIEF ELECTED FOR WORLD SUGAR ORGANISATION.
    LONDON, March 19 - Dominican Alfredo Ricart will take over
as executive director of the International Sugar Organization
(ISO) in mid-April, ISO officer in charge Constantin Politoff
said.
    Previous ISO chief William Miller retired at end-February
last year.
    Ricart told Reuters his first aim is put the "house in order"
by having a new administrative sugar pact with improved
allocations of voting rights and financial contributions.
    Once this is done, time can be dedicated to working towards
a new International Sugar Agreement (ISA) with economic
clauses, he said.
    Ricart, currently the Dominican Republic's ambassador to
Austria, the Netherlands and the UN in Geneva, said he will
visit the four major exporters - Australia, Brazil, Cuba and
the European Community - to talk to governments and producers
and find out about problems that are preventing these countries
finding common ground for a new sugar pact.


.I 12425
.C
sugar
.W
INTERNATIONAL SUGAR PACT TO BE RENEGOTIATED.
    LONDON, March 19 - The International Sugar Agreement (ISA)
will be renegotiated, International Sugar Organization (ISO)
officer in charge Constantin Politoff told Reuters after a
special session of the pact's council.
    A decision on how to renegotiate will be taken at the ISO
six monthly session in May. The alternatives are between an
autumn London conference for another pact without economic
clauses, but a different voting and budgetary structure, or a
Geneva-based conference next year for a new pact with economic
clauses, he said.
    But delegates said the latter would only be considered if
the world's four major exporters -- Australia, Brazil, Cuba and
the European Community -- can resolve differences over how
prices can best be supported and how to share the world
    Today's special session was called because the U.S. earlier
indicated it would only be able to pay 56 pct of its share of
the ISO budget.
    At today's council session Politoff said the U.S. would try
and find a way to pay the balance of about 50,000 stg later
this year. Currently, about three quarters of this year's ISO
800,000 stg budget has not been paid but delegates said the
U.S. caused controversy as it said it might not pay its full
contribution in the last year of the current pact.
    The Soviet Union has called for changes to the way the ISO
budget is shared out. Currently it is halved between importers
and exporters and the Soviet Union has a 30 pct share of the
importer half. The Soviets want a new sugar pact to have only a
single category of members who would all share the costs pro
rata to their share of world sugar trade.
    The ISO executive committee next meets on April 23 with the
next full council session in the week of May 19.
    There are 12 importing and 44 exporting members of the ISO.


.I 12427
.C
earn
.W
LASER <LSER> SEES IMPACT FROM SUIT ON EARNINGS.
    NEW YORK, March 19 - Laser Corp said that costs associated
with its defense of two shareholder lawsuits could result in a
net loss for 1987.
    Although Laser expects to post earnings from operations for
the year, a spokesman said they might be wiped out by legal
costs, depending on the length of litigation.
    In addition, the company said it will ask shareholders to
approve proposals to merge the company into its main
subsidiary, reincorporate in Delaware and change the company's
name.


.I 12428
.C
oilseed;veg-oil;soybean;
.W
E.C. OFFICIAL SAYS FATE OF VEG OIL TAX UNCERTAIN.
    LOS ANGELES, March 19 - Whether the European Community's
Council of Ministers will approve a proposed tax on vegetable
oils that has sparked threats of U.S. retaliation is uncertain,
an EC official said.
    "It is very far from certain that it will go through," Sir
Roy Denman, Head of the EC Delegation in Washington, told
reporters before he addressed the Foreign Trade Association.
    Denman noted Britain remains opposed to the plan and West
Germany has opposed it in the past.
    U.S. Trade Representative Clayton Yeutter has threatened
retaliation if the tax is approved, as it would limit U.S.
soybean exports to the EC. Council action is expected soon.
    Denman said while the EC is willing to negotiate about
agriculture in a new round of trade talks, it is unwilling to
single out export subsidies on a negotiating agenda or put
agricultural policy on a special fast track.
    "The key to a solution in this area seems to me not in the
framing of the GATT (General Agreement on Tariffs and Trade)
wording...but in tackling government subsidies to farmers on
both sides of the Atlantic," he said.


.I 12429
.C
earn
.W
PENSION INSURANCE GROUP <PGAI> 4TH QTR.
    VALLEY FORGE, PA, March 19 -
    Shr profit two cts vs profit two cts
    Net profit 216,000 vs 265,000
    Revs 1.7 mln vs 1.4 mln
    Year
    Shr profit four cts vs loss two cts
    Net profit 528,000 vs loss 290,000
    Revs 5.9 mln vs 5.5 mln
    NOTE:1986 net includes realized investment gains of 3,000
dlrs in year. 1985 4th qtr and year includes realized
investment gains of 16,000 and 35,000 dlr respectively.


.I 12430
.C
earn
.W
TRANSAMERICA CORP <TA> QUARTERLY DIVIDEND.
    SAN FRANCISCO, March 19 -
    Qtly div 44 cts vs 44 cts
    Pay April 30
    Record April 4


.I 12431
.C
earn
.W
SOUTHERN CALIFORNIA EDISON CO <SCE> QTLY DIV.
    ROSEMEAD, Calif., March 19 -
    Qtly div 57 cts vs 57 cts
    Pay April 30
    Record April 3


.I 12432
.C
earn
.W
COMPREHENSIVE CARE CORP <CMPH> QUARTERLY DIV.
    IRVINE, Calif., March 19 -
    Qtly div nine cts vs nine cts
    Pay May 21
    Record May 1


.I 12433
.C
earn
.W
GREAT WESTERN SAVINGS BANK <GWSB> QUARTERLY DIV.
    IRVINE, Calif., March 19 -
    Qtly div 12 cts vs 12 cts
    Pay April 8
    Record April 1


.I 12434
.C
trade
.W
SENATE WANTS JAPAN SEMICONDUCTER PACT ENFORCED.
    WASHINGTON, March 19 - The U.S. Senate has unanimously
called for President Reagan immediately to force Japan to live
up to a pledge to stop dumping its microchips and open its
markets to U.S. Chipmakers.
    The Senate voted 93 to 0 to urge Reagan to impose penalties
on Japanese high-technology products containing semiconductors
in retaliation for what it sees as Japan's violations of the
semiconductor pact.
    While the measure does not bind Reagan to any action,
Senate leaders said its adoption would warn Japan stiffer
legislation would be considered if the violations continue.
    "We want to send a message to Japan to let it know how the
Senate feels about this matter," Senate Democratic Leader Robert
Byrd told the Senate.
    Senate Finance Committee chairman Lloyd Bentsen told the
Senate the measure was not aimed at retaliation but at
correcting Japan's unfair trade practices.
    A key House trade lawmaker, Representative Richard Gephardt
also announced he would seek to force Japan and other countries
with huge trade surpluses to slash their surplus by 10 pct a
year for three years.


.I 12441
.C
crude
.W
******REAGAN SAYS U.S. MUST DO MORE TO LESSEN RELIANCE ON FOREIGN OIL.
Blah blah blah.

.I 12442
.C
crude
.W
REAGAN SAYS U.S. NEEDS TO LESSEN OIL IMPORTS.
    WASHINGTON, March 19 - President Reagan said the United
States must do more to lessen its reliance on imported oil.
    President Reagan said during a nationally televised news
conference that the rising U.S. reliance on foreign oil is a
problem that the administration is studying.
    "We have to study this more," Reagan said. "This is why we
increased the Strategic (Petroleum) Reserve, but we have to do
more," he said.
    Reagan said his administration has already proposed
deregulating natural gas and eliminating the windfall profits
tax on crude oil production.
    However, he complained that Congress had not yet approved
those measures.
    The Department of Energy earlier this week released a
report that warned of rising U.S. reliance on foreign oil
imports at a time when domestic production is declining. It
suggested options for the administration to consider, but made
no specific recommendations.


.I 12444
.C
trade
.W
TAIWAN'S EXPORT ORDERS FALL IN FEBRUARY.
    TAIPEI, March 20 - Export orders for Taiwanese products
fell 1.37 pct to 3.58 billion U.S. Dlrs in February from 3.63
billion in January, but rose nearly 43 pct from 2.51 billion a
year earlier, an Economic Ministry official said.
    He attributed the fall to the rising Taiwan dollar.
    February orders for electric and electronic goods were 619
mln U.S. Dlrs, up from 574 mln in January and 370 mln in
February 1986. Garment orders were 324 mln dlrs against 383 mln
and 283 mln while footwear orders were 297 mln compared with
333 mln and 200 mln.


.I 12446
.C
tin
.W
BOLIVIAN MINERS CALL GENERAL STRIKE.
     LA PAZ, March 19 - About 9,000 miners employed by the
state corporation, Comibol, declared a general strike as from
midnight (0400 gmt) to press for higher salaries, a statement
by the federation for Bolivian mine workers said.
     It said the strike was called to defend the nationalised
mining industry. The miners were willing to negotiate with the
government of President Victor Paz Estenssoro, but only if it
showed an intention to meet the strikers' demands.
     The government said the strike was designed to cause it
embarrassment during the four-day visit of West German
President Richard Von Weizsaecker, which starts on Friday.
    The miners statement said police had violently evicted
Comibol office workers in the city of Oruro after they began a
hunger strike yesterday.
    The government has sacked about 20,000 miners from its
deficit-ridden corporation since the collapse in the
international price of tin. The lay-offs represent about
two-thirds of the original workforce.


.I 12447
.C
ship
.W
CHINESE PORT UNDERUSED DESPITE CONGESTION NEARBY.
    NINGBO, China, March 20 - The Chinese port of Ningbo is
working well below capacity despite being only 130 miles from
Shanghai, which is seriously congested, a port official said.
    Jiang Feng Xiang said the port -- the deepest in China --
handled 17.95 mln tonnes of cargo last year, up from 10.44 mln
in 1985, but well below its potential capacity of 32 mln
tonnes. Shanghai handled 100 mln tonnes of cargo in 1986.
    Jiang said Ningbo is under-utilised because of its
inadequate facilities, including a single track rail line
linking it to Hangzhou, where it joins the national network.
    Ningbo handles crude oil exports and transhipments of coal
from north to south China and imports include fertiliser and
soda ash and iron ore from Brazil and Australia. The docks can
handle ships of up to 150,000 tonnes and oil tankers of up to
200,000 tonnes can load and unload in the harbour.
    Most of Ningbo's port infrastructure has been built since
1979, official publications show. A container berth and two
timber and three general cargo berths will be added during the
current 1986-90 five-year plan, Jiang said.
    "The rail line to Hangzhou will be double tracked by 1995.
By 2000, maybe, we will overtake Shanghai," he added.


.I 12450
.C
bop;trade;
.W
VOLCKER SAYS U.S. TRADE DEFICIT IS MAJOR CHALLENGE.
    JACKSONVILLE, Fla., March 19 - Federal Reserve Board
Chairman Paul Volcker said the U.S. Trade deficit is a
challenge for the U.S. Equal to the Soviet Union launching of
Sputnik.
    "The international challenge implicit in our huge trade
deficit has become the 1980s equivalent to the launch of
Sputnik by the Russians in the 1950s, when we suddenly feared
we were to be left in the wake of Soviet technological
achievement," he said in an address to Florida educators.
     He said the trade problem underscored the need to reform
the U.S. Educational system to improve economic performance.
    The Commerce Department reported last week that the
nation's trade gap, calculated on a balance-of-payments basis,
swelled to a record 38.37 billion dlrs in the fourth quarter,
bringing the 1986 deficit to a record 147.71 billion dlrs.
    Volcker called on educators to stress the development of
basic reading, writing and mathematics skills and urged them to
help students adapt to the fast-changing economic climate.
    Volcker said the challenge was greatest in the education of
low-income minority groups such as blacks and Hispanics.


.I 12451
.C
money-fx;interest;
.W
SHORT-TERM YEN INTEREST RATES SEEN FALLING SOON.
    TOKYO, March 20 - Japanese short-term interest rates,
buoyed recently by seasonal factors, are likely to fall from
the beginning of April when the new financial year begins,
money traders said.
    The Bank of Japan is expected to encourage the trend
following its attempts to pressure rates to enhance its
discount rate cut on February 23, they said.
    The Bank cut the rate to 2.5 pct from three, and began
actively injecting funds into the money market to offset rate
rises resulting from the end-of-fiscal-year surge in demand for
funds from financial institutions.
    Despite its attempts to dampen rates with measures such as
aggressive commercial bill purchases, the central bank has
failed to remove all upward pressure, money traders said.
    Attractive interest rates offered by domestic banks to
compete for time deposits of more than 600 mln yen has
underpinned short-term rates, they said.
    Interest rates on time deposits of more than 600 mln yen
were decontrolled by the Finance Ministry last September.
    This resulted in such deposits with domestic banks rising
to 17,830 billion yen by the end-December, a three-fold
increase on end-December 1985 levels, bankers said.
    On March 31, the money market expects to see a 2,000
billion yen surplus resulting from government payment of fiscal
funds, money traders said.
    From April 1, they predict the unconditional call rate will
fall to 3.5000 pct from 3.7500 pct today and the one-month
commercial bill discount rate to drop to 3.7500 pct from 4.0635
pct.
    They predict the three-month bill discount rate to slip to
3.875 pct from 4.0000 today and the three-month certificate of
deposit rate to slide to 4.10/4.15 from 4.35/25.


.I 12454
.C
trade
.W
JAPAN FEBRUARY INTERIM TRADE SURPLUS JUMPS.
    TOKYO, March 2 - Japan's customs-cleared trade surplus in
the first 20 days of February jumped to 3.58 billion dlrs from
1.94 billion a year earlier, the Finance Ministry said.
    The February interim surplus was sharply up from a 965.04
mln dlr surplus in the same January period.
    FOB exports rose 14.6 pct from a year earlier in the first
20 days of February to 10.91 billion, while CIF imports fell
3.2 pct to 7.33 billion.
    The average dollar/yen rates were 152.32 for exports and
152.31 for imports against 196.61 for exports and 196.27 for
imports a year earlier.


.I 12455
.C
alum
.W
NIPPON LIGHT METAL CONTINUES ALUMINIUM OUTPUT CUT.
    TOKYO, March 2 - Nippon Light Metal Co Ltd <NLGT.T>, which
has annual capacity of 63,000 tonnes, will continue primary
aluminium production at a rate of 35,000 tonnes owing to low
domestic and world prices and low water supplies at its
hydroelectric power plant, a company official said.
    Nippon, which has no plans to restore output to the 48,000
tonnes a year at which it was working until late 1986, will
become Japan's only smelter.
    <Ryoka Light Metal Industries Ltd> will stop smelting in
April owing to high power costs and low prices, and <Mitsui
Aluminium Co Ltd> has said it stopped smelting in February.


.I 12456
.C
crude
.W
SAUDI FEBRUARY CRUDE OUTPUT PUT AT 3.5 MLN BPD.
    ABU DHABI, March 2 - Saudi crude oil output last month fell
to an average of 3.5 mln barrels per day (bpd) from 3.8 mln bpd
in January, Gulf oil sources said.
    They said exports from the Ras Tanurah and Ju'aymah
terminals in the Gulf fell to an average 1.9 mln bpd last month
from 2.2 mln in January because of lower liftings by some
customers.
    But the drop was much smaller than expected after Gulf
exports rallied in the fourth week of February to 2.5 mln bpd
from 1.2 mln in the third week, the sources said.
    The production figures include neutral zone output but not
sales from floating storage, which are generally considered
part of a country's output for Opec purposes.
    Saudi Arabia has an Opec quota of 4.133 mln bpd under a
production restraint scheme approved by the 13-nation group
last December to back new official oil prices averaging 18 dlrs
a barrel.
    The sources said the two-fold jump in exports last week
appeared to be the result of buyers rushing to lift February
entitlements before the month-end.
    Last week's high export levels appeared to show continued
support for official Opec prices from Saudi Arabia's main crude
customers, the four ex-partners of Aramco, the sources said.
    The four -- Exxon Corp <XON>, Mobil Corp <MOB>, Texaco Inc
<TX> and Chevron Corp <CHV> -- signed a long-term agreement
last month to buy Saudi crude for 17.52 dlrs a barrel.
    However the sources said the real test of Saudi Arabia's
ability to sell crude at official prices in a weak market will
come this month, when demand for petroleum products
traditionally tapers off. Spot prices have fallen in recent
weeks to more than one dlr below Opec levels.
    Saudi Arabian oil minister Hisham Nazer yesterday
reiterated the kingdom's commitment to the December OPEC accord
and said it would never sell below official prices.
    The sources said total Saudi refinery throughput fell
slightly in February to an average 1.1 mln bpd from 1.2 mln in
January because of cuts at the Yanbu and Jubail export
refineries.
    They put crude oil exports through Yanbu at 100,000 bpd
last month, compared to zero in January, while throughput at
Bahrain's refinery and neutral zone production remained steady
at around 200,000 bpd each.


.I 12457
.C
veg-oil
.W
INDONESIAN PALM OIL OUTPUT EXPECTED TO RISE.
    JAKARTA, March 2 - Indonesia's palm oil output is expected
to rise and exports to increase, the U.S. Embassy said in its
annual report on Indonesia's agriculture sector.
    The Indonesian government said crude palm oil (CPO) output
is expected to rise to 1.56 mln tonnes in 1987 and 2.11 mln in
1988, up from a projected 1.45 mln tonnes in 1986 and 1.26 mln
in 1985.
    The 1986 projection of 1.45 mln tonnes is up from a
provisional figure of 1.3 mln tonnes.
    A U.S. Embassy assessment puts 1987 output at 1.45 mln
tonnes, against 1.35 mln in 1986 and 1.208 mln in 1985.
    "More realistic estimates indicate that 1988 production will
be between 1.5 and 1.6 mln tonnes," the report said.
    The report said the abolition of the five pct CPO export
tax, the devaluation of the rupiah in September 1986 and higher
international palm oil prices should lead to a modest increase
in exports this year.
    Exports are forecast to rise to 720,000 tonnes against
695,000 tonnes in 1986, the report added.


.I 12458
.C
cocoa;coffee;tea;
.W
INDONESIAN TEA, COCOA EXPORTS SEEN UP, COFFEE DOWN.
    JAKARTA, March 2 - Indonesia's exports of tea and cocoa
will continue to rise in calendar 1987 but coffee exports are
forecast to dip slightly in 1987/88 (April-March) as the
government tries to improve quality, the U.S. Embassy said.
    The embassy's annual report on Indonesian agriculture
forecast coffee output in 1986/87 would be 5.77 mln bags of 60
kilograms each. That is slightly less than the 5.8 mln bags
produced in 1985/86.
    In 1987/88 coffee production is forecast to rise again to
5.8 mln bags, but exports to dip to 4.8 mln from around 5.0 mln
in 1986/87. Exports in 1985/86 were 4.67 mln bags.
    The embassy report says coffee stocks will rise to 1.3 mln
tonnes in 1987/88 from 1.15 mln in 1986/87. It bases this on a
fall in exports as a result of the "probable" re-introduction of
quotas by the International Coffee Organisation.
    Cocoa production and exports are forecast to rise steadily
as the government develops cocoa plantations. Production of
cocoa in Indonesia increased to 32,378 tonnes in calendar 1985
from 10,284 tonnes in 1980. It is projected by the government
to rise to more than 50,000 tonnes by 1988.
    Production in 1986 is estimated by the embassy at 35,000
tonnes, as against 38,000 tonnes in 1987.
    The report forecasts cocoa exports to rise to 35,000 tonnes
this year, from 33,000 tonnes in 1986 and 31,000 in 1985.
    The Netherlands is at present the biggest importer of
Indonesian cocoa beans.
    The report forecasts that in calendar 1987, Indonesia's CTC
(crushed, torn and curled) tea exports will increase
significantly with the coming on stream of at least eight new
CTC processing plants.
    Indonesia plans to diversify its tea products by producing
more CTC tea, the main component of tea bags.
    Production of black and green teas is forecast in the
embassy report to rise to 125,000 tonnes in calendar 1987 from
123,000 tonnes in 1986.
    Exports of these teas are likely to rise to 95,000 tonnes
in 1987 from 85,000 in 1986 and around 90,000 in 1985.
    The embassy noted the ministry of trade tightened quality
controls on tea in October 1986 in an effort to become more
competititve in the world market.


.I 12462
.C
earn
.W
JAPAN'S NTT FORECASTS PROFITS FALL IN 1987/88.
    TOKYO, March 2 - <Nippon Telegraph and Telephone Corp>
(NTT) expects its profits to fall to 328 billion yen in the
year ending March 31, 1988 from a projected 348 billion this
year, the company said.
    Total sales for the same period are expected to rise to
5,506 billion yen from a projected 5,328 billion this year, NTT
said in a business operations plan submitted to the Post and
Telecommunications Ministry.
    NTT said it plans to make capital investments of 1,770
billion yen in 1987/88, including 109 billion for research and
development, as against a total of 1,600 billion this year.
    An NTT spokesman said increased competition from new
entrants to the telecommunications field and the effect of a
sales tax scheduled to be introduced next January, were the
major factors behind the projected decrease in profits.
    The Japanese telecommunications industry was deregulated in
1985.


.I 12464
.C
ship
.W
CHINA SIGNS WORLD BANK LOAN FOR TIANJIN PORT.
    PEKING, March 2 - China has signed a 130 mln dlr loan
agreement with the World Bank to partly finance 12 new berths
with an annual capacity of 6.28 mln tonnes at the 20 mln tonne
a year capacity Tianjin port, the New China News Agency said.
    China will provide 370 mln yuan for the project and a
Chinese company won a bid against 12 other firms from seven
countries to do the foundation work, it said.
    It said 11 of the new berths will be able to handle ships
of more than 10,000 tonnes, three will handle containers and
the expansion will enable the port to handle coke, non-metal
mineral ores and mining equipment for the first time.


.I 12466
.C
reserves
.W
******Japan February external reserves record 51.73 billion dlrs (January 51.46 billion).
Blah blah blah.

.I 12467
.C
reserves
.W
JAPAN FEBRUARY RESERVES RECORD 51.73 BILLION DLRS.
    TOKYO, March 2 - Japan's external reserves rose to a record
51.73 billion dlrs at the end of February from the previous
record of 51.46 billion at end-January, the Finance Ministry
said.
    End-February reserves last year were 27.58 billion dlrs.
    In January, the nation's foreign reserves showed the
largest-ever monthly increase at 9.22 billion dlrs due to
massive Bank of Japan dollar buying intervention during the
month as the dollar fell briefly to an all-time low of 149.98
yen on January 19, foreign exchange dealers said.


.I 12473
.C
coffee
.W
ICO TALKS ON COFFEE QUOTAS TO RESUME AT NOON.
    LONDON, March 2 - Talks on coffee export quotas at the
International Coffee Organization (ICO) special council session
will resume at noon gmt today, following a last minute decision
taken early this morning to extend the meeting 24 hours, ICO
officials said.
    An 18 member contact group will meet at midday to examine
new ideas, and the full council is to convene at 1900gmt, they
said.
    The extension resulted from a last ditch effort by Colombia
to salvage the talks, which by late yesterday looked perilously
close to ending without agreement on quotas, delegates said.


.I 12476
.C
sugar
.W
INDIAN SUGAR OUTPUT RISES IN FIRST FOUR MONTHS.
    NEW DELHI, March 2 - India's sugar output to January 31 in
the 1986/87 season (October/September) rose to 3.66 mln tonnes
from 3.46 mln in the same 1985/86 period, the Indian Sugar
Mills Association said.
    Total offtake in the first four months of the current year
was 2.71 mln tonnes (including 241,000 tonnes imported) for
domestic use and 4,000 tonnes for export, against 2.81 mln
tonnes (including 993,000 imported) for domestic use and 3,000
tonnes for export in the corresponding period of 1985/86.
    Factory stocks at end-January were 3.05 mln tonnes (96,000
imported) against 3.13 mln (96,000 imported) a year earlier.


.I 12479
.C
money-fx;interest;
.W
NEW DUTCH ADVANCES TOTAL 4.8 BILLION GUILDERS.
    AMSTERDAM, 2 March - The Dutch Central Bank said it has
accepted bids totalling 4.8 billion guilders at tender for new
seven-day special advances at 5.3 pct covering the period March
2 to 9 aimed at relieving money market tightness.
    Subscriptions to 300 mln guilders were met in full, amounts
above 300 mln at 50 pct.
    The new facility replaces old five-day advances worth 8.0
billion guilders at the same rate.
    Dealers expect this week's money market shortage to be
around 12 billion guilders.


.I 12480
.C
oilseed;soybean;
.W
JAPAN BUYS SOME 95,000 TONNES SOYBEANS FROM CHINA.
    TOKYO, March 2 - Japanese importers bought some 95,000
tonnes of Chinese soybeans late last month for May to September
shipment, under the semi-annual trade accords, trade sources
said.
    The FOB premium rose to 13.50 dlrs per tonne, up 2.50 dlrs
from the premium for the November to April shipment, but down
from 13.80 for the last May to September shipment.
    Flat prices for Chinese beans are based on futures prices
in Chicago plus the FOB premium.
    Japanese purchases of Chinese soybeans, including spot
buying, may have totalled 240,000 to 250,000 tonnes of the 1986
crop for November to April 1987 shipment, down from some
300,000 tonnes the previous year, the sources said.
    Domestic demand for edible-use soybeans is expected to
remain stable at about 240,000 to 250,000 tonnes a year, the
sources said.
    In recent years Japanese importers have overbought Chinese
edible-use soybeans and sold the surplus to domestic crushers,
but low 1986 U.S. Crop prices have discouraged the purchase of
Chinese origin beans for crushing, they said.


.I 12481
.C
acq
.W
******SHV SAYS IT MAKING TENDER OFFER FOR UP TO 33 MLN SHARES IN IC GAS.
Blah blah blah.

.I 12482
.C
earn
.W
CHEUNG KONG (HOLDINGS) LTD <CKGH.HK> YEAR 1986.
    HONG KONG, March 2 -
    Shr 3.25 H.K. Dlrs vs 1.40
    Final div 52 cents vs 38, making 75 cents vs 57
    Net 1.28 billion dlrs vs 551.7 mln
    Note - Earnings excluded extraordinary gains of 983.6 mln
dlrs vs 81.3 mln. Bonus issue one-for-four vs nil. Share split
four-for-one. Dividend payable June 3, books close May 11-21.


.I 12485
.C
acq
.W
WALLENBERGS FIGHT BID FOR SWEDISH MATCH STAKE.
    STOCKHOLM, March 2 - Sweden's Wallenberg group fought back
a bid by the London-based Swedish financier Erik Penser to
secure a large stake in Swedish Match <SMBS ST>, one of the
companies at the core of their business empire.
    A statement issued by the Wallenberg holding companies AB
Investor and Forvaltnings AB Providentia said they had taken
over an option held by Nobel Industrier Sweden AB to acquire 33
pct of the voting rights in Swedish Match.
    Thre Wallenbergs paid Nobel Industrier <NOBL ST>, in which
Penser group has a 72 pct stake, about 20 pct over the market
price for the Swedish Match option, the statement said.
    Swedish Match's B shares open to foreign buyers closed at
424 crowns on Friday. The A shares -- with increased voting
rights -- closed at 450 crowns for the restricted and 455 for
the free shares.
    The statement said the deal increased Investor's stake to
49.4 pct of the voting rights and 14.8 pct of the share capital
while Providentia is left holding 34.1 pct of the voting rights
and 14.5 pct of the share capital in Swedish Match.
    The Wallenbergs' stake in Swedish Match had previously
amounted to 52 pct of the voting rights in the company.
    The Swedish Match deal will cost the Wallenbergs about 400
mln crowns, share analysts said, making it one of the most
expensise moves the group has undertaken in the last four years
to defend its far-flung interests from outside predators.
    The Wallenbergs originally sold Nobel Industrier, an arms
and chemicals group, to Penser in 1984 to pay for buying Volvo
<VOLV ST> out of two other key group companies, Atlas Copco
<ASTS ST> and Stora Koppabergs <SKPS ST>.
    Since then, the Wallenbergs were ousted as the largest
shareholders in SKF (SKFR ST> by Skanska AB <SKBS ST> and
Frederik Lundberg wrested control of Incentive AB from them.
    Lundberg, a Zurich-based Swedish property tycoon, also
managed to acquire a 25 pct stake in another Wallenberg
company, the diary equipment firm Alfa -Laval AB <ALFS ST>.
    During 1986, the Wallenbergs have been concentrating on
building up their stake in Investor and Providentia to prevent
any raid on the heart of their business empire.
    But analysts say the Wallenbergs' position in the
electrical engineering firm ASEA AB <ASEA ST> is also too small
at 12.6 pct of the voting rights and there has been growing
speculation that the group will be forced to sell off fringe
interests to protect its core activities.


.I 12486
.C
oilseed;meal-feed;soybean;soy-meal;
.W
INDONESIAN SOYBEAN IMPORTS FORECAST TO RISE.
    JAKARTA, March 2 - Soybean imports are forecast to rise to
425,000 tonnes in 1987/88 (October/September) from an estimated
300,000 in 1986/87 and 375,000 in 1985/86, the U.S. Embassy
said in its annual report on Indonesia's agriculture.
    It said Indonesia did not achieve its goal of
self-sufficiency in soybean output in calendar 1986 because it
did not meet a planned increase in area planted and because
yields have remained below target.
    Soybean meal imports are forecast to fall to around 190,000
tonnes in 1987/88 from 270,000 tonnes in 1986/87 and 295,000
tonnes in 1985/86.
    Domestic soybean production is forecast to rise steadily to
1.08 mln tonnes in 1987/88 from 980,000 in the current year and
890,000 in 1985/86, the report said.
    Imports are forecast to fall in the current year but to
rise in 1987/88 because of a new soybean crushing plant due to
come on stream in early 1988.
    China is the main supplier with a 79 pct share, while the
U.S. Provides the rest, it said.
    "This pattern will likely continue during 1986/87 since
domestic soyfood processors prefer Chinese beans and are
willing to pay a premium for them," it said.
    Area planted is expected to increase by 10 pct in both
1986/87 and 1987/88.
    "Yield increases continue to be hampered by an insufficient
supply of quality seeds, along with pest and disease problems,"
the report said.


.I 12487
.C
acq
.W
SHV SAYS IT MAKING TENDER OFFER FOR IC GAS.
    LONDON, March 2 - <SHV (United Kingdom) Holding Co Ltd>
said it was making a tender offer for up to 33 mln ordinary
shares in Imperial Continental Gas Association.<ICGS.L>.
    It said in a statement the offer was on the basis of 700p
for each IC Gas ordinary and 252p for every one stg nominal of
IC Gas loan stock.
    SHV already holds 6.8 mln IC Gas ordinary stock units
representing around 4.9 pct of the current issued share
capital.
    Successful completion of the offer would increase SHV's
stake in IC Gas to 39.8 mln shares, representing around 27.9
pct of issued share capital, it said.
    The offer capitalises IC Gas at around one billion stg.
    It said it was tendering for both ordinary stock and loan
stock, which when fully converted, gave a total of 33 mln IC
Gas ordinary. It is making the tender offer through N.M.
Rothschilds.
    IC Gas said in a statement it noted the SHV tender offer
and the terms were being considered.
    It said a further statement would be made as soon as
possible.
 REUTER...

.I 12490
.C
money-fx;interest;
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG.
    LONDON, March 2 - The Bank of England said it forecast a
shortage of around 800 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 1.61 billion stg.
    Partly offsetting this outflow, exchequer transactions and
a fall in note circulation will add around 425 mln stg and 360
mln stg respectively. In addition, bankers' balances above
target will add some 20 mln stg to the system today.


.I 12492
.C
gold;strategic-metal;platinum;
.W
BLACK MINERS SUPPORT S. AFRICAN MINES TAKEOVER.
    SOWETO, South Africa, March 2 - Thousands of black
mineworkers roared support for a union proposal to seize
control of South Africa's gold, uranium, platinum and coal
mines if the owners refuse to improve conditions for migrant
black workers.
    About 15,000 miners attended a rally here to endorse moves
proposed by last week's annual meeting of the 200,000 strong
National Union of Mineworkers (NUM).
    They also supported a proposal for a national strike at the
end of this month if the owners refused to begin negotiations.
    Migrant workers from surrounding countries make up more
than half of the labour force in the mines.
    It was not stated how the union would "seize control."
    The miners' leaders also demanded an end to the system of
single sex hostels for migrant workers, to be replaced by
housing schemes so that workers could live with their families.
    The crowd, one of the largest to attend a meeting since
South Africa declared a state of emergency last June, also
shouted approval of a proposal to work closely with
anti-apartheid movements such as the United Democratic Front
(UDF) which claims two mln members. They also shouted their
support for a demand that jailed black nationalist leader
Nelson Mandela be released.


.I 12493
.C
meal-feed;tapioca;
.W
THAILAND ANNOUNCES THIRD TAPIOCA QUOTA FOR EC.
    BANGKOK, March 2 - Thailand's Commerce Ministry announced a
new tapioca export quota of 737,987 tonnes for the European
Community against 762,860 tonnes for the previous allocation.
    The ministry said the fresh allocation, for the February
27-July 7 shipment period, is the third under a maximum 5.5 mln
tonne overall quota that Thailand obtained from the EC for
calendar 1987.
    It said the quota allocation was based on a national
tapioca pellet stock of 4.34 mln tonnes surveyed last week, up
from 3.05 mln in mid-January.


.I 12494
.C
tin
.W
ATPC MEMBERS FIND WAYS TO CURB TIN EXPORTS.
    By Rajan Moses, Reuters
    KUALA LUMPUR, March 2 - Mine and industry officials from
most member states of the Association of Tin Producing
Countries (ATPC) say they have found ways to limit group
exports to 96,000 tonnes in the year started March 1, according
to views polled by Reuter correspondents.
    The plan to curb exports, agreed in January, is aimed at
cutting the world surplus to 50,000 tonnes from 70,000 now and
boosting prices to about 19 ringgit a kilo from just over 16.
    Members of the seven-member Kuala Lumpur-based ATPC account
for some 65 pct of the world's tin output.
    Under the ATPC plan, Malaysia has been allocated an export
quota of 28,526 tonnes, Indonesia 24,516, Thailand 19,000,
Bolivia 13,761, Zaire 1,736 and Nigeria 1,461.
    Australia has said it is not setting any export quota.
However, the tonnage allocated to it, 7,000 tonnes, is roughly
equal to its expected output this year.
    Comment from officials in Zaire was unavailable.
    Mine officials in Malaysia, the world's leading producer,
said only 188 mines will be allowed to operate to ensure that
output is limited to around 31,500 tonnes in the year started
March 1.
    Chief Inspector of Mines Redzuan Sumun told Reuters that
excess output of some 3,000 tonnes after exports of 28,500 in
the one-year quota period would be kept in the national stock.
    Mine owners in Malaysia have welcomed the ATPC export curb
and asked the government not to issue new mining licences. More
than 100 applications for licences are pending.
    Redzuan said the Mines Department would approve new mining
licences only if a six-month review of production trends showed
that local mines were not overproducing.
    ATPC chairman and Indonesia's Mining and Energy Minister
Subroto has pledged his country's support for the export curb.
    A spokesman for the state-owned tin mining company PT
Tambang Timah told Reuters it would be easy for Indonesia to
stick to an export quota of 24,516 tonnes because this was
close to exports in calendar 1986 of 24,636.
    In Bangkok, Thai Industry Minister Pramual Sabhavasu said
Thailand would keep to its 19,000 tonne quota and added this
would not cause the local industry hardship at current prices.
    To insure adherence, the industry ministry and sole tin
exporter Thailand Smelting and Refining Co would encourage
bigger stockpiles, and income tax exemptions would be
permitted, he said.
    The Thai Mineral Resources Department is expected to
disallow new tin mines opening this year to prevent excessive
production, industry sources said.
    But Mining Industry Council President Dam Teutong told
Reuters that if the tin price rose above 18 ringgit a kilo,
Thai miners would press for the opening of more new mines.
    Thailand exported 18,367 tonnes in 1986, up from 17,359 in
1985, Pramual said.
    Bolivia said it expects to export less tin this year than
its allocated 13,761 tonne quota.
    Mining Minister Jaimie Villalobos told Reuters in La Paz
that Bolivia expected to export about 9,000 tonnes of tin in
calendar 1987.
    He said this was due to the sacking after the tin crisis of
October 1985 of about 20,000 of the 28,000 workers at the state
mining company Comibol, which produces more than 80 pct of
Bolivia's total exports.
    He said there were risks in the ATPC plan to cut exports
but added he was confident the goals set by the plan would be
achieved. He did not elaborate.
    Mines, Power and Steel Minister Bunu Sheriff Musa said in
Lagos that Nigeria would have no difficulty keeping within its
ATPC quota of 1,461 tonnes because its metals output had
declined due to poor demand and high production costs.
    Industry sources told Reuters that Nigeria's output was
less than 1,000 tonnes last year.
    ATPC officials said they would monitor member countries'
export figures every three months using customs documents and
make projections from such data to see if quotas were likely to
be breached within the year-long quota period.
    The ATPC officials said members that appeared likely to
breach their quotas would be told to take remedial measures.
    They added that if member countries were unable to fulfil
their quotas their extra tonnage would be reallocated to other
members at the ATPC's discretion.
    The ATPC would have produced and exported an estimated
106,000 tonnes of tin in 1987 without the plan.
    Non-members Brazil and China have pledged to cooperate with
the ATPC and limit their exports to 21,000 and 7,000 tonnes
respectively during the quota period.


.I 12495
.C
bop;trade;
.W
SOUTH KOREA TO HOLD CURRENT ACCOUNT SURPLUS DOWN.
    SEOUL, March 2 - South Korea plans to take steps to keep
its 1987 current account surplus below five billion dlrs,
Economic Planning Board Minister Kim Mahn-je said.
    Kim told reporters the government would repay loans ahead
of schedule and encourage firms to increase imports and
investment abroad to prevent the current account surplus from
rising too quickly.
    Last year South Korea's current account surplus was 4.65
billion dlrs. It widened to 622 mln dlrs in January from 484
mln in December and compared with a deficit of 334 mln in
January 1986, Bank of Korea figures show.


.I 12496
.C
palm-oil;oilseed;veg-oil;rapeseed;soybean;sunseed;soy-oil;
.W
DUTCH OILSEEDS/FATS IMPORTS ROSE IN 1986.
    THE HAGUE, March 2 - Dutch imports of fat- and oil-bearing
raw materials, fats and oils rose to 2.16 mln tonnes on a
fat/oil basis in 1986 from 2.12 mln tonnes in 1985, the
Commodity Board for Margarine, Fats and Oils said.
    Exports of the same commodities fell to 1.35 mln tonnes
from 1.38 mln on a fat-oil basis.
    Fat- and oil-bearing raw materials imports rose to 760,000
from 709,200 tonnes on a fat/oil basis and to 3.47 mln tonnes
actual weight from 3.32 mln.
    Soyabeans were the main component, with imports rising to
2.82 mln tonnes actual weight from 2.75 mln. Sunflowerseed
imports fell to 308,200 from 342,900 tonnes while rapeseed
imports rose to 292,000 from 201,400 tonnes.
    Exports of fat- and oil-bearing raw materials rose to
28,700 tonnes from 19,800 on a fat/oil basis and to 137,200
from 89,900 tonnes actual weight.
    Soyabean exports rose to 119,400 tonnes actual weight from
73,200 tonnes.
    Imports of vegetable fats, including palm oil, rose to
445,400 tonnes from 362,500 and exports to 151,500 from
139,800.
    Vegetable oil imports fell to 227,500 tonnes in 1986 from
286,300 in 1985, and exports to 661,400 from 683,400 tonnes.
    Soyabean oil imports were 32,000 (48,200), sunflower oil
61,600 (92,800), rape oil 82,900 (94,900) and groundnut oil
9,300 (12,200). Exports of soybean oil were 325,900 (338,800),
sun oil 172,100 (189,800), rape oil 114,300 (103,400) and
groundnut oil 7,000 (10,400).
    Animal fat imports rose to 371,700 from 345,800 tonnes and
exports to 124,100 tonnes from 113,000. Fishoil imports fell to
190,600 from 265,600 and exports to 56,500 from 85,500 tonnes.
 reuter...

.I 12497
.C
gold
.W
CHINA'S HEILONGJIANG PROVINCE BOOSTS GOLD OUTPUT.
    PEKING, March 2 - Gold output in the northeast China
province of Heilongjiang rose 22.7 pct in 1986 from 1985's
level, the New China News Agency said. It gave no figures.
    It said the province, China's second largest gold producer
after Shandong, plans to double gold output by 1990 from the
1986 level. China does not publish gold production figures.
    However, industry sources estimate output at about 65
tonnes a year, with exports put between 11 and 31 tonnes.
    China is selling more gold abroad to offset large trade
deficits in recent years, western diplomats said.


.I 12498
.C
acq
.W
SALE TILNEY BUYS STAKE IN U.S. INSURANCE BROKER.
    LONDON, March 2 - <Sale Tilney Plc> said it has purchased
80 pct of the ordinary share capital of <B and R International
Inc.>, a U.S. Insurance broker, for 5.6 mln dlrs.
    Sale is paying 3.6 mln dlrs in cash on completion, with the
balance plus interest to be paid in equal instalments over the
next six years.
    B and R posted pretax profit of 855,000 dlrs in the year to
Dec 31, 1986 when it had net tangible assets of 563,000 dlrs.


.I 12500
.C
earn
.W
ESTIMATED DROP IN JAPAN CORPORATE PROFITS TRIMMED.
    TOKYO, March 2 - The combined profits of Japan's major
corporations, excluding financial institutions, are forecast to
fall 19.2 pct in the 1986/87 year ending March 31, compared to
the 19.9 pct decline projected in late November, Wako Research
Institute of Economics said.
    The private research body also said in a statement that 437
of the 1,084 firms listed on the first section of the Tokyo
Stock Exchange foresee an 11.6 pct fall in sales in the year
against an 11.4 pct fall estimated last November.
    Current profits are projected to fall 4.4 pct in 1987/88 on
sales seen increasing by 4.2 pct, it said.
    Rationalisation measures taken by manufacturing industries
to cope with the yen's sharp rise are beginning to brighten
their business outlook, the institute said.
    It said lower interest rates, which are expected to reduce
corporate borrowing costs, are also behind the improved
performance outlook.
    Earnings performance in the non-manufacturing sector will
be supported by firm demand in the real estate and construction
businesses, it said.
    The forecast was based on average exchange rate estimates
of 160 yen to the dollar in 1986/87 and 155 yen in 1987/88.


.I 12503
.C
palm-oil;veg-oil;rape-oil;
.W
INDIA BUYS 46,000 TONNES OF VEGETABLE OILS.
    LONDON, March 2 - The Indian State Trading Corporation
purchased 46,000 tonnes of vegetable oils at its import tender
on Friday, market sources said.
    The business was for April shipments and comprised 20,000
tonnes of European rapeseed oil at 318 dlrs, 20,000 tonnes of
soyoil, believed South American origin, at 314, and 6,000
tonnes of Malaysian rbd palm olein at 347 dlrs, all per tonne
cif.
    Palm oil sellers were disappointed at the light purchase of
rbd olein and early trading saw the market ease nearly 10 dlrs
under Malaysian refiner and dealer selling. April shipments
traded down to 326 dlrs per tonne, fob.


.I 12505
.C
interest
.W
JAPAN TO PROMOTE INTEREST RATE LIBERALISATION.
    TOKYO, March 2 - The Bank of Japan decided at a policy
board meeting to promote further interest rate liberalisation
by lowering the minimum denomination of regulation-free large
deposits and by raising the interest rate ceiling on money
market certificates (MMCs), a central bank official said.
    The new guideline will go into effect on April 6, the bank
said.
    Under the guideline, the minimum denomination of
regulation-free large deposits will be lowered to 100 mln yen
from 300 mln.
    The interest rate ceiling of MMCs with maturities of
between one year and two years will be set at 0.5 percentage
point below the prevailing certificate of deposit rate, the
bank said.
    But the ceiling on MMCs with maturities of one year or less
will remain the same, or 0.75 percentage point below the CD
rates.
    The minimum denomination of MMCs will be lowered to 10 mln
yen from 30 mln.
    The bank also said time deposit rates will be lowered by
0.37 point, effective March 16, in line with the half-point cut
in the official discount rate on February 23.
    New interest rates on two-year and one-year deposits at
banks, for example, will be 3.64 pct and 3.39 pct per annum,
respectively.
    Demand deposit rates, however, will remain the same.


.I 12506
.C
reserves
.W
TAIWAN POWER FIRM PLANS MORE FOREIGN DEBT CUTS.
    TAIPEI, March 2 - State-owned (Taiwan Power co) will boost
its domestic borrowings to further cut its foreign debt in line
with a government policy to trim the island's huge foreign
exchange reserves, a company official said.
    The company's foreign debt, mainly from the Japanese and
U.S. Banks, was cut nearly by half to 66.2 billion taiwan dlrs
equivalent in calendar 1986 from 124.6 billion in 1985, he
said.
    Its domestic borrowings however rose to 105.2 billion
taiwan dlrs from 80.6 billion in the same period, he added.
    Taiwan's foreign exchange reserves now stood at 50 billion
U.S. Dlrs, due to its 1986 record trade surplus of 15.6
billion.


.I 12510
.C
grain;meal-feed;corn;soy-meal;tapioca;cornglutenfeed;
.W
DUTCH ANIMAL FEED USAGE DOWN IN FIRST HALF SEASON.
    ROTTERDAM, March 2 - Dutch animal feed usage in the first
half of the current season from July through December 1986 fell
7.6 pct to 6.5 mln tonnes from 7.1 mln in the same period of
1985, figures in the latest newsletter from the co-operative
Cebeco-Handelsraad show.
    Tapioca usage fell 9.1 pct to 1.4 mln tonnes from 1.6 mln
in the first half of the 1985/86 season.
    Grain usage fell 6.1 pct to 1.1 mln tonnes from 1.2 mln,
while soymeal usage fell 10 pct to 967,000 tonnes from 1.1 mln.
    Cornglutenfeed usage fell 17.8 pct to 729,000 tonnes from
887,000, but cornfeedmeal usage nearly doubled to 399,000
tonnes from 201,000.
    Citruspulp usage dropped 62.8 pct to 149,000 tonnes from
400,000 tonnes, while rapeseed and meal usage rose 9.6 pct to
217,000 tonnes from 198,000 and sunmeal rose 25.6 pct to
216,000 tonnes from 172,000 tonnes.
    During the whole of the season from July 1985 to June 1986,
Dutch soymeal usage fell 12 pct to 1.9 mln tonnes from 2.1 mln
the previous season, while sunmeal usage rose 25 pct to 408,000
tonnes from 325,000.
    Rapeseed and meal usage during the season also rose 14 pct
to 409,000 tonnes from 360,000, but citruspulp fell 37 pct to
516,000 tonnes from 826,000.
    Meanwhile, the value of exports of agricultural products
from the Netherlands in calendar 1986 fell 5.4 pct to 48.7
billion guilders from 51.5 billion in calendar 1985, figures
from the Ministry of Agriculture show.
    During the same period imports of agricultural products
dropped 13.1 pct to 31.2 billion guilders from 35.8 billion.


.I 12513
.C
money-supply
.W
U.K. CONFIRMS JANUARY STERLING M3 RISE.
    LONDON, March 2 - The Bank of England said the broad
measure of U.K. Money supply, Sterling M3, rose a seasonally
adjusted 1.1 pct in January after a 0.2 pct rise in December.
    The unadjusted year-on-year rise was 17.6 pct after 18.1
pct in the year to December.
    The narrow measure of money supply, M0, fell by a
seasonally adjusted 0.6 pct in January, and rose by a
non-adjusted 4.1 pct year-on-year, the Bank said.
    The figures confirm provisional data issued by the Bank two
weks ago.
    In December, M0 grew by a seasonally adjusted 1.4 pct and
by a non-seasonally adjusted 5.2 pct year-on-year.
    The Bank said sterling bank lending grew by a
non-seasonally adjusted 1.75 billion stg in January. This also
confirmed provisional figures issued in February.
    The measure of private sector liquidity, PSL2, fell 0.2 pct
in January, but after seasonal adjustment rose 0.6 pct, the
Bank said.
    The Bank said the public sector contribution to the growth
in Sterling M3 was contractionary by about 2.3 billion stg.
    Within this, the Public Sector Borrowing Requirement (PSBR)
showed a repayment of 3.7 billion stg, while the non-bank
private sector's holdings of government debt fell by about 1.1
billion stg.
    There was a fall of 290 mln stg in notes and coin in
January, a fall of 1.5 billion stg in non-interest bearing
sight deposits, and a rise of 1.6 billion stg in interest
bearing sight deposits, the Bank said.


.I 12514
.C
acq
.W
EXCO BUYS U.S. GOVERNMENT SECURITIES BROKER.
    LONDON, Mar 2 - <Exco International Plc>, a subsidiary of
British and Commonwealth Shipping Co Plc <BCOM.L>, said it had
agreed in principle to buy an 80 pct stake in <RMJ Holdings
Corp> for about 79 mln dlrs.
    Exco Chairman Richard Lacy told Reuters the acquisition was
being made from Bank of New York Co Inc <BK.N>, which currently
holds a 50.1 pct, and from RMJ partners who hold the remainder.
    Bank of New York and the partners will retain about 10 pct
each and these stakes will be bought over the next six years.
    RMJ is the holding company of RMJ Securities, one of the
largest U.S. Government securities brokers.
    It is also involved in broking notes, obligations and other
instruments sponsored by U.S. Federal agencies.
    Lacy said Exco had been considering buying a U.S.
Government securities broker for the past four years and had
made an offer for RMJ when it was sold by Security Pacific Corp
<SPC.N> in 1985. RMJ was then valued at about 50 mln dlrs.
    B and C managing director Peter Goldie said RMJ would be
bought at about the same multiple as Exco, suggesting net
income of around 16 mln dlrs.
    The company's earnings had not been hit by the halving of
brokerage fees some 14 months ago as volumes had since doubled.
    Lacy said that RMJ employed some 300 people, with 200 in
the brokerage business and about 70 in its <SMS> unit, which
provided computer software for the financial services
community.
    RMJ Securities had offices in New York, where total market
turnover of U.S. Government securities was 110 billion dlrs a
day, and in London where it has 15 billion.
    It was also given permission last week to open an office in
Tokyo where total market turnover had lifted rapidly to about
five billion dlrs a day.
    The acquisition would contribute between five and 10 pct of
B and C's share earnings in 1987 on a proforma basis.


.I 12515
.C
palm-oil;veg-oil;
.W
PAKISTAN TO TENDER FOR RBD PALM OIL.
    LONDON, March 2 - Pakistan will hold an import tender
tomorrow for 6,000 tonnes of refined bleached deodorised palm
oil for second half March shipments, traders said.


.I 12517
.C
acq
.W
COLOROLL AGREES TO BUY U.S. WALLCOVERINGS COMPANY.
    LONDON, March 2 - <Coloroll Group Plc> said it has entered
into a conditional agreement to acquire the business and assets
of <Wallco Inc> and related companies for 14.5 mln dlrs.
    Miami-based Wallco manufactures and distributes
wallcoverings and showed a pretax profit of 1.5 mln dlrs on
turnover of 37 mln in the year ending June 1986. The total U.S.
Market was estimated to be worth 840 mln dlrs in 1986, having
grown by 47 pct in the previous five years, Coloroll said.
    The combined sales and profit of the enlarged Coloroll U.S.
Business would be 67 mln and four mln dlrs respectively.


.I 12519
.C
money-fx;interest;
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN.
    LONDON, March 2 - The Bank of England said it revised its
forecast of the shortage in the money market down to around 700
mln stg from its original estimate of 800 mln.


.I 12521
.C
trade
.W
SWEDEN TO GO AHEAD WITH S. AFRICAN TRADE SANCTIONS.
    STOCKHOLM, March 2 - Sweden's ruling Social Democratic
Party gave full power to the government to decree unilateral
trade sanctions against South Africa, Prime Minister Ingvar
Calrsson said.
    Carlsson told a news conference the party decided the fight
against apartheid took priority over Sweden's traditional
policy of only adopting sanctions with the backing of the U.N.
Security Council.
    The government will decide later what form the trade
boycott will take and when it will come into force.


.I 12524
.C
money-fx;interest;
.W
U.K. MONEY MARKET RECEIVES 37 MLN STG ASSISTANCE.
    LONDON, March 2 - The Bank of England said it had provided
the money market with 37 mln stg assistance in the morning
session. This compares with the Bank's downward revised
estimate of the shortfall in the system today of around 700 mln
stg.
    The central bank purchased bank bills outright comprising
four mln stg in band one at 10-7/8 pct and 33 mln stg in band
two at 10-13/16 pct.


.I 12525
.C
trade
.W
JAPAN, U.S. SET TO BEGIN HIGH-LEVEL TRADE TALKS.
    By Rich Miller, Reuters
    TOKYO, March 2 - Japan and the U.S. Kick off top-level
trade talks tomorrow amid signs officials from both sides are
growing increasingly irritated with each other.
    The talks, held annually at sub-cabinet level to review the
whole gamut of U.S./Japan economic relations, will pave the way
for American Secretary of State George Schultz's one day
stop-over here at end-week on his way home from China.
    Faced with growing Congressional protectionist pressure,
the U.S. Administration is pressing Japan for speedy action to
reduce its still huge trade surplus, U.S. Officials said.
    "We appreciate their frustration," a senior Japanese
government official said. "But we are also frustrated."
    The official said the 40 pct rise of the yen over the last
18 months has hit Japan hard, forcing exporters to slash
spending and lay off workers to make up for lost sales abroad.
That has not yet shown up in dollar-based statistics on trade,
but it will, he said.
    He said the U.S. Administration was ignoring the progress
that has been made and instead emphasizing the problems that
remain when it talks with Congress.
    "It would only take five minutes to list their
accomplishments," a senior U.S. Official replied.
    The talks begin tomorrow with high-level discussions on the
economic structures of both countries and how they affect the
bilateral trade imbalance, which last year amounted to 51.48
billion dlrs in Japan's favour.
    On the following two days, the topics will range from
multilateral trade talks under the auspices of the General
Agreement on Tariffs and Trade (GATT) to such bilateral trade
problems as super computers.
    The structural talks are intended to be free-wheeling
discussions among senior officials. Tomorrow's topics include
savings and investment issues such as consumer credit and
housing, and the implications of government budget deficits.
    These talks come at a particularly delicate time for the
Japanese government, which is facing increasing domestic
pressure to abandon its tight-fisted fiscal policy and
stimulate the sagging economy by spending more.
    Some U.S. Officials complained Japan has no intention of
boosting domestic demand and imports, as Washington wants.
    Japanese officials in turn pointed the finger at the huge
U.S. Budget deficit as one of the main culprits for the trade
imbalance. That budget deficit has meant that the U.S. Is
buying more imports.
    Japan seems particularly peeved at being singled in a draft
trade bill before the Senate as a nation following adverserial
trade practices. "It condemns Japan without due process," one
Japanese official said.
    That reference spoils what is otherwise a well-thought-out
bill introduced by Democratic Senator Lloyd Bentsen, he said.
    Japan is also not totally happy with the administration's
trade bill, particularly its proposal to establish reciprocal
access to foreign markets as one criteria for retaliatory trade
action by the U.S., Officials said.
    Nevertheless, Japanese officials said they remain in a weak
bargaining position, especially with the threat of a trade bill
overhanging them.
    "We have no leverage," one official admitted.
    As a result, Tokyo is striving to meet U.S. Complaints
about its trade practices in a variety of fields, including
super computers.
    The U.S. Is pressing for greater access to the Japanese
super computer market.
    The Japanese government has sent a long questionnaire to
public institutions like universities which buy the
sophisticated machines in hopes of eventually setting up
informal bidding procedures easily understood by all potential
sellers, officials said.


.I 12526
.C
sugar
.W
INDIA TO HOLD WHITE SUGAR BUYING TENDER.
    LONDON, March 2 - India will hold a buying tender on
Wednesday, March 4, for two to three cargoes of white sugar for
March/April shipment, traders said.


.I 12528
.C
earn
.W
CARLTON COMMUNICATIONS OPTIMISTIC FOR 1987.
    LONDON, March 2 - <Carlton Communications Plc> has started
the current financial year well, with accounts for the first
four months showing a healthy increase on the same period last
year, and Chairman M.P. Green told the annual meeting he looked
forward to 1987 with optimism.
    The issue of 4.6 mln shares in ADR form had now been
successfully completed, he added.
    Carlton intended to increase its presence in the U.S. Which
represented 50 pct of the world television market. Conditions
worldwide in the television industry continued to look buoyant,
the Chairman noted.


.I 12529
.C
strategic-metal
.W
EC OPENS ANTI-DUMPING ENQUIRY INTO SOVIET MERCURY.
    BRUSSELS, March 2 - The European Community Commission said
it has opened an enquiry into allegations that the Soviet Union
is dumping mercury on the European market at below-cost prices.
    The Commission said its decision follows a complaint from
EC non-ferrous metals producers that the sales of Soviet
mercury were harming their business and threatening jobs in the
European industry.
    According to the complaint, Soviet mercury sales in the EC
had risen from zero in recent years to 100 tonnes between
August and October last year and threaten to capture 25 pct of
the EC market if they continue at the same pace.
    The industry said the mercury was being sold at more than
40 pct below prices charged by EC producers, forcing them to
cut their prices to levels that no longer covered costs. The
imports had caused producers heavy financial losses, it said.
    The Commission said the industry would probably be unable
to hold prices at current levels and that any increase would
result in loss of sales and jobs.
    The so-called anti-dumping procedure opened by the
Commission will allow all interested parties to state their
cases to the authority.


.I 12532
.C
crude
.W
GULF ARAB DEPUTY OIL MINISTERS TO MEET IN BAHRAIN.
    ABU DHABI, March 2 - Deputy oil ministers from six Gulf
Arab states will meet in Bahrain today to discuss coordination
of crude oil marketing, the official Emirates news agency WAM
reported.
    WAM said the officials would be discussing implementation
of last Sunday's agreement in Doha by Gulf Cooperation Council
(GCC) oil ministers to help each other market their crude oil.
    Four of the GCC states - Saudi Arabia, the United Arab
Emirates (UAE), Kuwait and Qatar - are members of the
Organiaation of Petroleum Exporting Countries (OPEC) and some
face stiff buyer resistance to official OPEC prices.


.I 12535
.C
crude
.W
SAUDI ARABIA REITERATES COMMITMENT TO OPEC ACCORD.
    BAHRAIN, March 2 - Saudi Arabian Oil Minister Hisham Nazer
reiterated the kingdom's commitment to last December's OPEC
accord to boost world oil prices and stabilize the market, the
official Saudi Press Agency SPA said.
    Asked by the agency about the recent fall in free market
oil prices, Nazer said Saudi Arabia "is fully adhering by the
... accord and it will never sell its oil at prices below the
pronounced prices under any circumstance."
    Saudi Arabia was a main architect of December pact under
which OPEC agreed to cut its total oil output ceiling by 7.25
pct and return to fixed prices of around 18 dollars a barrel.


.I 12536
.C
crude
.W
KUWAIT MINISTER SAYS NO EMERGENCY OPEC TALKS SET.
    KUWAIT, March 2 - Kuwait's oil minister said in a newspaper
interview that there were no plans for an emergency OPEC
meeting after the recent weakness in world oil prices.
    Sheikh Ali al-Khalifa al-Sabah was quoted by the local
daily al-Qabas as saying that "none of the OPEC members has
asked for such a meeting."
    He also denied that Kuwait was pumping above its OPEC quota
of 948,000 barrels of crude daily (bpd).
    Crude oil prices fell sharply last week as international
oil traders and analysts estimated the 13-nation OPEC was
pumping up to one million bpd over its self-imposed limits.


.I 12537
.C
trade
.W
TAIWAN PLANS NEW TARIFF CUTS.
    By Andrew Browne, Reuters
    TAIPEI, March 2 - Taiwan plans another round of deep tariff
cuts this year to help narrow its trade surplus with the U.S.,
A senior economic planner said.
    Wang Chao-Ming, vice-chairman of the council for economic
planning and development, told Reuters Taiwan would further
reduce import tariffs on 1,700 products sometime in the second
half of this year.
    Cuts of up to 50 pct on those items were made last year and
Wang said further cuts would go much deeper.
    "We have to speed up liberalisation and cut import tariffs
faster and more substantially," he said.
    The United States, Taiwan's main trading partner, has said
the island's import tariffs, still ranging from a high of
almost 60 pct, were unacceptable. It has criticised the cuts as
too selective.
     Taiwan's trade surplus with the United States hit 13.6
billion dlrs last year. The surplus has boosted foreign
exchange reserves to 50 billion dlrs, which Wang said made
Taiwan a target for U.S. Protectionism.
    Wang said the trade surplus and the reserves weakened
Taiwan's position in talks with Washington over export quotas,
particularly for shoes, textiles and machine tools which are
among the island's main export-earners.
    A special Taiwanese trade delegation leaves for Washington
tomorrow to try to renegotiate an agreement signed last year
limiting exports of Taiwan textiles.
    Under the accord, Taiwan's textile export growth was
limited to 0.5 pct each year until 1988. Taipei has said it is
losing markets to South Korea and Hong Kong which were given
more generous terms.
 REUTER...

.I 12543
.C
acq
.W
SCIENTIFIC MICRO SYSTEMS <SMSI> ACUIRES SUPERMAC.
    NEW YORK, March 2 - Scientific Micro Systems Inc said it
has acquired Supermac Technology, a rapidly growing supplier of
enhancement products and disc drive subsystems for the Apple
personal computer market.
    Scientific Micro said it acquired all the common stock of
Supermac in exchange for 1.05 mln shares of its own common
stock. The stock closed at 5.50 dlrs bid on Friday.
    Supermac, a privately held firm based in Mountain View,
California, as is Scientific Micro, reported a net profit of
300,000 dlrs on revenue of 9.5 mln dlrs in fiscal 1986. It
expects its revenue to approximately double in 1987.



.I 12544
.C
acq
.W
AMERICAN EXPRESS <AXP> VIEWING SHEARSON OPTIONS.
    By Patti Domm, Reuters
    NEW YORK, March 2 - American Express Co, rumored to be
considering a spinoff of part of Shearson Lehman Brothers Inc,
said it is studying a range of options for its brokerage unit
that could improve Shearon's access to capital and help it meet
broadening international competition.
    In a joint statement, American Express and Shearson said
the actions under consideration are an integral part of
American Express' worldwide financial services strategy and
that the two companies have been having both internal and
external discussions on the matters.
    American Express said no decision has been reached on the
strategic options and that it and Shearson could ultimately
decide to follow growth plans already in place.
    Last week, rumors circulated on Wall Street that the
financial services giant was considering a spinoff of part of
Shearson and there was speculation it may be considering
selling a stake to a Japanese firm. Analysts said the
speculation also focused on American Express selling 20 pct of
the profitable brokerage firm to the public.
    There was some speculation that American Express had also
considered a total spinoff of Shearson, but the plan was
considered highly unlikely, analysts said.
     American Express said in the statement on Sunday that it
will not comment on rumors and speculation and a spokesman
would not go beyond the statement. The company also remained
silent last Thursday and Friday, as rumors drove American
Express stock up a total of 5-1/2 dlrs in two days to bring it
to a Friday close at 74.
     It said it issued the statement on Sunday because a
similar statement was being circulated to employees.
    Analysts have been divided on whether it makes sense for
American Express to give up a stake in the wholly-owned
brokerage, which improved its after-tax earnings by about 50
pct in the last year.
    Some analysts said American Express may consider spinning
off part of Shearson because it is concerned that its stock
price does not fully reflect the value of the brokerage firm.
     Shearson contributed 316 mln dlrs of American Express'
1.25 billion dlr net in 1986.
    American Express' ambitious plans for international growth
may be also enhanced by the added cash that spinning out part
of Shearson would bring. Analysts speculated that all of
Shearson would have a market value of about 3.5 billion dlrs.
    To some however, the need for added capital is puzzling.
"(American) Express is in a position where they can raise
capital if they need to," said Larry Eckenfelder of
Prudential-Bache Securities.
    Analysts said rumors were fed by the reorganization of
Shearson management Wednesday. Chief operating officer Jeffrey
Lane got the added, previously vacant, post of president.
     The reorganization also created four new positions for
chairmen of Shearson's operating divisions, a move analysts
speculated would allow Shearson to be a stand alone company.
     Analysts, contacted on Sunday said the statement does
little to clarify last week's market speculation. It does
confirm, however, that the financial services firm, which
unsuccessfully attempted to expand Shearson with a major
acquisition last year, is looking beyond its own walls for
growth and positioning in the global market competition.
    Late last year, Shearson's takeover offer to the E.F.
Hutton Group Inc was rejected by Hutton, and analysts said
there had been speculation that Shearson also was rebuffed when
it approached another major Wall Street brokerage.        


.I 12548
.C
acq
.W
ROPAK <ROPK> HAS 34 PCT OF BUCKHORN <BKN>.
    FULLERTON, Calif., March 2 - Ropak Corp said it received
and accepted about 456,968 common shares and 527,035 Series A
convertible preferred shares of Buckhorn Inc at four dlrs and
5.75 dlrs each respectively in response to its tender offer
that expired Friday, and it now owns 34.4 pct of Buckhorn
voting power.
    The company had owned 63,000 common and 25,100 preferred
shares before starting the hostile tender.  Ropak said it is
borrowing the funds needed to buy the Buckhorn shares from its
bank lender and will not need to use any funds that another
bank had committed to provide under a margin loan.
    Ropak said it waived minimum acceptance requirements to buy
the shares and intends to evaluate a number of possible ways of
completing an acquisition of Buckhorn.  It said it hopes that
Buckhorn's board will reevaluate its position and enter into
meaningful negotiations.


.I 12550
.C
ship;crude;
.W
PHILADELPHIA PORT CLOSED BY TANKER CRASH.
    PHILADELPHIA, March 2 - The port of Philadelphia was closed
when a Cypriot oil tanker, Seapride II, ran aground after
hitting a 200-foot tower supporting power lines across the
river, a Coast Guard spokesman said.
    He said there was no oil spill but the ship is lodged on
rocks opposite the Hope Creek nuclear power plant in New
Jersey.
    He said the port would be closed until today when they
hoped to refloat the ship on the high tide.
    After delivering oil to a refinery in Paulsboro, New
Jersey, the ship apparently lost its steering and hit the power
transmission line carrying power from the nuclear plant to the
state of Delaware.


.I 12551
.C
acq
.W
PENRIL <PNL> SEEKS TO SELL TWO UNITS.
    ROCKVILLE, Md., March 2 - Penril Corp said it is seeking to
sell its Triplett Electrical Instrument Corp subsidiary in
Bluffton, Ohio, and Triplett's Alltest division in Hoffman
Estates, Ill., as part of a plan to concentrate on its three
profitable division and reduce its debt load.
    The company also said it is evaluating a plan to satisfy
its obligations under its 10-7/8 pct subordinated notes but
gave no details.  Interest on the notes is due today.
    Penril further said director Clifford L. Alexander Jr. has
resigned from the board.  It gave no reason.
    Penril said shareholders at the annual meeting approved the
limitation of directors' liability.   


.I 12553
.C
acq
.W
<DALE BURDETT INC> FACES DAMAGE CLAIM.
    WESTMINSTER, Calif., March 2 - Dale Burdett Inc said it
faces damages claims totalling about 420,000 dlrs from the
former owners of Burdett Publications Inc.
    The company said on February 20, 1986, its predecessor
Nolex Development Inc acquired Burdett Publications Inc in an
exchange of 17 mln common shares for all Burdett Publications
shares, but the transaction was not qualified with the
California Department of Corporations.
    As a result, it said, the former Burdett Publications
owners have a claim for damages against Dale Burdett as
successor to Nolex for one yuear starting January 21, 1987,
with the damages measured by the difference in values of shares
exchanged plus interest from February 20, 1986.


.I 12554
.C
acq
.W
PUROLATOR <PCC> IN BUYOUT WITH HUTTON <EFH>.
    By Patti Domm
    NEW YORK, March 2 - New Jersey-based overnight messenger
Purolator Courier Corp said it has agreed to be acquired for
about 265 mln dlrs by a company formed by E.F. Hutton LBO Inc
and certain managers of Purolator's U.S. courier business.
    Analysts have said that Purolator has been for sale for
some time. Purolator announced earlier it was mulling a
takeover bid, but analysts wrongly predicted the offer was from
another courier company.
    Hutton LBO, a wholly owned subsidiary of E.F. Hutton Group
Inc, will be majority owner of the company.
    Hutton said the acquiring company, PC Acquisition Inc, is
paying 35 dlrs cash per share for 83 pct of Purolator's stock
in a tender offer to begin Thursday. The rest of the shares
will be purchased for securities and warrants to buy stock in a
subsidiary of PC Acquisition, containing Purolator's U.S.
courier operations.
    If all the shares of Purolator are tendered, shareholders
would receive for each share 29 dlrs cash, six dlrs in
debentures, and a warrant to buy shares in a subsidiary of PC
Acquisition containing the U.S. courier operations.
    Hutton said in the merger shareholders would get 46 mln
dlrs aggregate amount of guaranteed debentures due 2002 of PC
Acquisition and warrants to buy 15 pct of the common stock of
the PC courier subsidiary. Hutton said the company has valued
the warrants at two to three dlrs per share.
    Purolator's stock price closed at 35.125 dlrs on Friday.
While some analysts estimated the company was worth in the mid
30s, at least one said it would be worth 38 to 42 dlrs.
    This follows sales of two other Purolator units. It agreed
recently to sell its Canadian Courier unit to Onex Capital for
170 mln dlrs, and previously sold its auto filters business.
    Purolator retains its Stant division, which makes closure
caps for radiators and gas tanks. A Hutton spokesman said the
firm is reviewing its options on Stant.
    Purolator's courier business has been lagging that of its
U.S. rivals because of the high price it paid in the past
several years to add air delivery to its ground fleet.
    E.F. Hutton will provide 279 mln dlrs of its funds to
complete the transaction. This so-called "bridge" financing
will be replaced later with long-term debt most likely in the
form of bank loans, Hutton said. Hutton LBO is committed to
keeping the courier business, its president Warren Idsal said.
    "Purolator lost 120 mln dlrs over the last two years
largely due to U.S. courier operations, which we believe the
management is turning around. We belive it will be a very
serious competitor in the future," said Idsal.
    William Taggart, chief executive officer of U.S. Courier
division, will be chief executive officer of the new company.
    The tender offer will be conditioned on a minimum of two
thirds of the common stock being tendered and not withdrawn to
the expiration of the offer as well as certain other conditions.
    The offer will begin Thursday, subject to clearances from
the staff of the Interstate Commerce Commission and will expire
20 business days after commencement unless extended.


.I 12556
.C
cotton
.W
PAKISTAN COTTON OUTPUT REACHES 7.7 MLN BALES.
    KARACHI, March 2 - Pakistan cotton production during the
current crop season (Sept/March) reached 7.7 mln bales of 375
pounds each, up 500,000 from last season, Shafi Niaz, Chairman
of the Agricultural Prices Commission, said.
    Official sources said Pakistan was likely to use 3.4 mln
bales of cotton during the current financial year ending June
after 2.96 mln in 1985/86 and 2.70 mln in 1984/85.
    They said consumption would increase due to a rise in
demand for cotton yarn in domestic markets and abroad. Pakistan
produced 540 mln kilos of yarn in fiscal year 1985/86 and
exported 157 mln.
    The State-owned cotton export corporation was likely to
export 3.8 mln bales of cotton during the current fiscal year
compared with 3.86 mln last year, cotton traders said.
    The traders said there would be 1.3 mln bales of cotton
carryover this fiscal year compared with just over a mln bales
last year.


.I 12558
.C
acq
.W
FINANCIAL SANTA BARBARA <FSB> TO MAKE PURCHASE.
    SANTA BARBARA, Calif., March 2 - Financial Corp of Santa
Barbara said it has signed a definitive agreement to purchase
Stanwell Financial, the lending operations unit of mortgage
banking company <Stanwell Mortgage>, for undisclosed terms.


.I 12559
.C
alum
.W
ALCAN TO CLOSE WEST GERMAN ALUMINIUM SMELTER.
    ESCHBORN, West Germany, March 2 - <Alcan Aluminiumwerke
GmbH>, a subsidiary of Alcan Aluminium Ltd <AL.N> of Canada,
said it plans to close its aluminium smelter in Ludwigshafen at
the end of June.
    A spokesman said Alcan was closing the smelter, with annual
capacity of 44,000 tonnes and 320 employees, because of high
electricity costs and the low world market price of aluminium.
    Alkan had said earlier this year it would close half the
plant's capacity but decided to shut down completely when talks
with potential cooperation partners failed, the spokesman said.
He declined to name the other companies involved in the talks.


.I 12560
.C
earn
.W
BBC AG BROWN BOVERI UND CIE <BBCZ.Z> 1986 YEAR.
    BADEN, Switzerland, March 2 -
    Parent Company net profit 12.8 mln Swiss francs vs 7.5 mln.
    Orders received 2.21 billion francs vs 2.61 billion.
    Sales 2.25 billion francs vs 2.49 billion.
    Group sales 13.83 billion francs vs 13.88 billion.
    Group orders 11.03 billion francs vs 13.00 billion.
 REUTE

.I 12561
.C
acq
.W
MARRIOTT <MHS> TO SELL HOTEL.
    TORONTO, March 2 - <Four Seasons Hotels> said it and <VMS
Realty Partners> of Chicago have agreed to purchase the Santa
Barbara Biltmore Hotel from Marriott Corp for an undisclosed
amount.
    It said the venture will rename the hotel the Four Seasons
Biltmore at Santa Barbara and invest over 13 mln dlrs in
improvements on the 228-room property.


.I 12563
.C
earn
.W
BROWN BOVERI OMITS DIVIDEND, PLANS WARRANT BOND.
    BADEN, Switzerland, March 2 - BBC AG Brown Boveri und Cie
<BBCZ.Z> said it will omit dividend in 1986 for the second
consecutive year.
    It said it planned to invite shareholders and non-voting
stockholders to subscribe to a warrant bond issue of around 150
mln Swiss francs to be made after the June 2 annual meeting.
    The value of the stock subscription rights should
correspond roughly to the dividend of 30 francs per share paid
in 1984. The company also plans to issue participation
certificates with a par value of 70 mln Swiss francs, from
which existing shareholders are excluded.


.I 12564
.C
earn
.W
HUTCHISON SEES HIGHER PAYOUT, SATISFACTORY PROFITS.
    HONG KONG, March 2 - Hutchison Whampoa Ltd <HWHH.HK>
expects satisfactory profits in 1987 and will pay a higher
dividend for the year, chairman Li Ka-shing said.
    He did not make any specific projections for the company's
earnings this year but he said the firm will pay a dividend of
not less than 32.5 cents per share after a proposed
four-for-one stock split and a one-for-four bonus issue.
    It paid total dividends of 1.30 dlrs per share last year,
equal to 26 cents per share, adjusting for the bonus and share
split.
    Hutchison, which has operations ranging from trading to
property and container terminals, earlier reported after-tax
profits of 1.62 billion dlrs against 1.19 billion dlrs in 1985.
    The 1986 total excluded extraordinary gains of 563 mln
dlrs, partly from the sale of some of its stake in the South
China Morning Post, the leading English language newspaper,
compared with 369 mln dlrs the previous year. It said it
expects another 277 mln dlr gain in 1987 from the sale of the
remaining shares.
    Li said Hong Kong's property market remains strong while
its economy is performing better than forecast with its largely
export-led growth.
    Gross domestic product grew by nearly nine pct last year
against an initial government projection of 4.5 pct.
    But he said Hong Kong's large trade deficit with the U.S.
May result in protectionist measures that will adversely affect
the British colony.
    He said all of the company's major operations showed
improved results in 1986.
    Hutchison said earlier it will sell its entire 23.5 pct
interest in Hongkong Electric Holdings Ltd <HKEH.HK> to
<Cavendish International Holdings Ltd>, itself a spin-off from
Hongkong Electric.
    Under a reorganisation announced separately, Hongkong
Electric will spin off all its non-electricity related
activities into Cavendish, which will be listed on the local
stock exchange. Hongkong Electric shareholders will receive one
share in Cavendish for every Hongkong Electric share.
    Cavendish will buy the 348.2 mln Hongkong Electric shares
from Hutchison by issuing 975 mln new shares.
    The spin-off and the sale of Hongkong Electric shares will
give Hutchison a 53 pct stake in Cavendish.
    Li said the decision to spin-off Cavendish is to relieve
Hongkong Electric of public criticism of the power company for
making risky investments. But he denied there was pressure from
the government for the spin-off.
    He said Cavendish will have seven billion dlrs of assets
and will be almost debt free, with 340 mln dlrs of liabilites.
Its major assets are the Hong Kong Hilton Hotel, property
development, and interests in Husky Oil Ltd <HYO.TO> of Canada
and Pearson Plc <PSON.L> of Britain.


.I 12566
.C
acq
.W
******VIACOM SAID IT HAS NEW NATIONAL AMUSEMENTS, MCV HOLDINGS BIDS.
Blah blah blah.

.I 12570
.C
acq
.W
LAROCHE STARTS BID FOR NECO <NPT> SHARES.
    NEW YORK, March 2 - Investor David F. La Roche of North
Kingstown, R.I., said he is offering to purchase 170,000 common
shares of NECO Enterprises Inc at 26 dlrs each.
    He said the successful completion of the offer, plus shares
he already owns, would give him 50.5 pct of NECO's 962,016
common shares.
    La Roche said he may buy more, and possible all NECO
shares. He said the offer and withdrawal rights will expire at
1630 EST/2130 gmt, March 30, 1987.


.I 12571
.C
earn
.W
<SDC SYDNEY DEVELOPMENT CORP> NINE MTHS LOSS.
    VANCOUVER, British Columbia, March 2 -
    Period ended December 31, 1986
    Oper shr loss 1.08 dlrs vs loss 84 cts
    Oper loss 7,700,000 vs loss 1,700,000
    Revs 11,800,000 vs 9,800,000
    Note: Current shr and net exclude extraordinary gain of
300,000 dlrs or five cts shr, versus extraordinary gain of
200,000 dlrs or four cts shr


.I 12572
.C
acq
.W
SENIOR ENGINEERING MAKES 12.5 MLN DLR US PURCHASE.
    LONDON, March 2 - <Senior Engineering Group Plc> said it
reached agreement with <Cronus Industries Inc> to acquire the
whole share capital of <South Western Engineering Co> for 12.5
mln dlrs cash. This sum is being financed by a term loan.
    South Western is one of the U.S.'s leading manufacturers of
heat transfer equipment, with a turnover of 54.86 mln dlrs and
pre-tax profits of 1.72 mln in 1986.
    Completion of the deal is conditional on approval under
U.S. Hart-Scott-Rodino regulations which is expected within 30
days. Some 350,000 dlrs is payable immediately, 12 mln dlrs
payable on completion with the balance due by June 30, 1987.


.I 12573
.C
earn
.W
CHEUNG KONG CHAIRMAN SEES STRONG RESULTS IN 1987.
    HONG KONG, March 2 - Cheung Kong (Holdings) Ltd <CKGH.HK>
is expecting strong results this year after reporting better
than expected profits in 1986, chairman Li Ka-shing said.
    He did not give a specific earnings projection but he told
reporters the firm will pay total dividends of not less than 19
cents a share this year after a one-for-four bonus issue and a
four-for-one stock split.
    The company earlier declared total dividends equal to 15
cents a share for 1986, adjusting for the stock split and bonus
issue.
    Cheung Kong's earnings rose to 1.28 billion H.K. Dlrs in
1986, well above market expectations of 920 mln to one billion
dlrs. They compared with profits of 551.7 mln dlrs in 1985.
    Cheung Kong also reported extraordinary gains of 983.6 mln
dlrs mainly from the firm's sale of the Hong Kong Hilton Hotel
to Hongkong Electric Holdings Ltd <HKEH.HK> for one billion
dlrs. It had gains of 81.3 mln dlrs in 1985.
    Li attributed the surge in 1986 earnings to a buoyant local
property market and substantial increases in contributions from
associated companies.
    "Looking ahead, 1987 should be another year of stability for
the property market," Li said. "The growth in (Hong Kong's)
exports is expected to stimulate the demand for industrial
buildings."
    Cheung Kong is cash rich and is looking for new projects in
the British colony, Li said, noting the firm is interested in a
land reclamation project along the Hong Kong harbour and is
exchanging views with the government on a proposal to build a
second airport.


.I 12575
.C
earn
.W
******WHITTAKER CORP 1ST QTR OPER SHR 17 CTS VS 25 CTS.
Blah blah blah.

.I 12576
.C
acq
.W
VIACOM <VIA> RECEIVES TWO REVISED OFFERS.
    NEW YORK, March 2 - Viacom International Inc said it
received revised merger offers from <National Amusements Inc>
and <MCV Holdings Inc>.
    The company said the special committee plans to meet later
today to review both offers.
    Viacom said National Amusements' Arsenal Holdings Inc
raised the value of its offer for the Viacom shares not held by
National Amusements in three areas. National Amusements holds
19.6 pct of Viacom's stock.
    The cash value of the offer was raised to 42.00 dlrs from
the 40.50 dlrs a Viacom share offered February 23 while the
value of the fraction of a share of exchangeable preferred
being offered was increased to 7.50 dlrs a share from six dlrs.
The interest rate to be used to increase the cash value of the
merger, if delayed beyond April 30, was raised to nine pct from
eight pct and 12 pct after May 31.
    A Viacom spokesman said the Arsenal Holdings's offer
continues to include a 20 pct interest in Arsenal for present
Viacom shareholders.
    Viacom said MCV Holdings, a group which includes the
company's senior management and the Equitable Life Assurance
Society of the United States, raised the value of its offer by
increasing the value of the preferred being offered to 8.50
dlrs from 8.00 dlrs a share and raising the ownership in the
new company to be held by present Viacom shareholders to 45 pct
from 25 pct. MCV called its previous offer, made February 26,
the "final" proposed revision of its agreement with Viacom.


.I 12578
.C
wheat;grain;barley;corn;
.W
FRENCH ESTIMATE 86/87 WHEAT DELIVERIES UNCHANGED.
    PARIS, March 2 - The French Cereals Intervention Board,
ONIC, left its estimate of French 1986/87 (July/June) soft
wheat deliveries unchanged from its last forecast at 21.98 mln
tonnes.
    This compared with deliveries of 24.38 mln tonnes in
1985/86 (August/July).
    Estimated 1986/87 maize deliveries were also left unchanged
from ONIC's previous forecast at the beginning of February at
9.91 mln tonnes against 10.77 mln the previous season.
    Barley deliveries were also unchanged at 6.62 mln tonnes
against 7.7 mln in 1985/86.


.I 12579
.C
earn
.W
******WASTE MANAGEMENT CORP VOTES TWO FOR ONE STOCK SPLIT AND BOOSTS QTLY DIVIDEND TO 18 CTS.
Blah blah blah.

.I 12581
.C
acq
.W
******PITTSTON AGREES TO ACQUIRE WTC INTERNATIONAL IN EXCHANGE OF STOCK.
Blah blah blah.

.I 12582
.C
earn
.W
TUESDAY MORNING INC <TUES> 4TH QTR NET.
    DALLAS, March 2 -
    Shr 1.19 dlrs vs 1.46 dlrs
    Net 3,150,185 vs 2,665,284
    Revs 27.9 mln vs 24.1 mln
    Avg shrs 2,653,646 vs 1,826,858
    Year
    Shr 1.45 dlrs vs 1.37 dlrs
    Net 3,611,802 vs 2,502,443
    Sales 62.2 mln vs 52.8 mln
    Avg shrs 2,489,978 vs 1,826,858


.I 12583
.C
acq
.W
******DIAGNOSTIC/RETRIEVAL SYSTEMS INC MAKES 53 MLN DLR BID FOR ROSPATCH CORP.
Blah blah blah.

.I 12584
.C
acq
.W
MILLER TABAK HAS 91.8 PCT OF PENN TRAFFIC <PNF>.
    NEW YORK, March 2 - <Miller Tabak Hirsch and Co> said it
has received an accepted 3,424,729 common shares of Penn
Traffic Co in response to its 31.60 dlr per share tender offer
that expired Friday, and together with the 380,728 shares it
already owned, it now has about 91.8 pct of Penn Traffic.
    The company said Penn Traffic is expected to hold a special
shareholders' meeting later this month to approve a merger into
Miller Tabak at the tender price.
    It said two Miller Tabak representatives will be named to
the Penn Traffic board on March Four to serve as the only
directors with Penn Traffic president and chief executive
officer Guido Malacarne.
    The company said it received financing for the transaction
from First National Bank of Minneapolis and Salomon Inc <SB>.


.I 12585
.C
coffee
.W
COFFEE QUOTA TALKS CONTINUE BUT NO AGREEMENT YET.
    LONDON, March 2 - Coffee quota talks at the International
Coffee Organization council meeting here continued this
afternoon, but producers and consumers still had not reached
common ground on the key issue of how to estimate export
quotas, delegates said.
    The 54 member contact group was examining a Colombian
proposal to resume quotas April 1 under the ad hoc system used
historically, with a pledge to meet again in September to
discuss how quotas would be worked out in the future, they
said.
    Delegates would not speculate on the prospects for
agreement at this time.
    "Anything could happen," one delegate said.


.I 12587
.C
earn
.W
WASTE MANAGEMENT <WMX> VOTES SPLIT, UPS PAYOUT.
    OAK BROOK, ILL., Mar 2 - Waste Management Corp said its
board voted a two-for-one stock split payable April 21, record
March 30.
    In other action, Waste Management directors approved an
increase in the quarterly dividend to 18 cts from 14 cts,
payable April three, record March 18.


.I 12588
.C
earn
.W
POREX TECHNOLOGIES <PORX> SETS INITIAL DIVIDEND.
    FAIR LAWN, N.J., March 2 - Porex Technologies Corp said its
board declared an initial annual dividend of 10 cts per share,
its first payout, payable March 26 to holders of record March
12.


.I 12589
.C
earn
.W
DAVIS WATER <DWWS> DECLARES STOCK DIVIDEND.
    THOMASVILLE, Ga., March 2 - Davis Water and Waste
Industries Inc said its board declared a 33-1/3 pct stock
dividend, payable March 23 to holders of record March 12.


.I 12590
.C
earn
.W
MEDCO CONTAINMENT <MCCS> SETS INITIAL PAYOUT.
    ELMWOOD PARK, N.J., March 2 - Medco Containment Services
Inc said its board declared an initial annual dividend of 10
cts per share, its first payout, payable March 19 to holders of
record March 12.


.I 12591
.C
acq
.W
PITTSTON <PCO> AGREES TO ACQUIRE WTC <WAF>.
    STAMFORD, Conn., March 2 - Pittston Co said it has
tentatively agreed to acquire WTC International N.V. in a
tax-free exchange of stock.
    Pittston said it agreed to exchange 0.523 common share for
each of the about 8,612,000 WTC common shares outstanding.
    Pittston said WTC's three principal shareholders, who own
62 pct of its stock, are parties to this agreement. They have
granted Pittston the right of first refusal to their shares.
    WTC has granted Pittston an option to buy WTC shares equal
to 18.5 poct of its outstanding stock. The agreement is subject
to approval of both boards and WTC shareholders.
    Pittston said described WTC as a fast growing air freight
forwarding company with operations throughout the world. Its
revenues totaled nearly 200 mln dlrs in the year ended November
30 and for the quarter ended on that date it earned 1.3 mln
dlrs on revenues of 55.8 mln dlrs.
    Pittston said its Burlington Air Express subsidiary
generates about two-thirds of its 450 mln dlrs in annual
revenes with its domestic air freight services.


.I 12592
.C
earn
.W
SDC SYDNEY COST REVIEW MAY ELIMINATE PRODUCTS.
    VANCOUVER, British Columbia, March 2 - <SDC Sydney
Development Corp>, earlier reporting an increased nine month
operating loss, said a cost control review now underway may
result in cost reduction and elimination of unprofitable and
non-strategic products and services.
    The company's operating loss for the nine months ended
December 31, 1986 increased to 7.7 mln dlrs from a loss of 1.7
mln dlrs in the prior year, it said earlier.
    Revenues increased by 20 pct to 11.8 mln dlrs from
year-earlier 9.8 mln dlrs.


.I 12593
.C
earn
.W
<MULTI-STEP PRODUCTS INC> SIX MTHS DEC 31 LOSS.
    TORONTO, March 2 -
    Shr loss 11 cts
    Loss 739,146
    Revs 11,754,251
    Note: initial public listing December, 1986


.I 12594
.C
money-fx;interest;
.W
U.K. MONEY MARKET OFFERED BORROWING FACILTIES.
    LONDON, March 2 - The Bank of England said it had offered
borrowing facilities to those discount houses wishing to use
them at 1430 GMT.
    The Bank also said it provided the money market 456 mln stg
assistance in the afternoon session bringing its total help so
far today to 493 mln stg. This compares with its forecast of a
shortage in the system today of around 700 mln stg.
    The central bank purchased bank bills outright comprising
41 mln stg in band one at 10-7/8 pct 361 mln stg in band two at
10-13/16 pct and 54 mln stg in band three at 10-3/4 pct.
    Money market dealers said the Bank of England has recently
used the offer of borrowing facilities to signal that it does
not want to see an early reduction in U.K. Base lending rates.
    The Bank does this by lending to the discount houses at
rates of interest higher than its prevailing money market
dealing rates.


.I 12599
.C
reserves
.W
SWISS SIGHT DEPOSITS RISE 3.10 BILLION FRANCS.
    ZURICH, March 2 - Sight deposits by commercial banks at the
Swiss National Bank rose by 3.10 billion Swiss francs to 10.53
billion in the last 10 days of February, the National Bank
said.
    Foreign exchange reserves fell 3.06 billion francs to 30.64
billion.
    Sight deposits are an important measure of Swiss money
market liquidity.
    The decline in foreign exchange reserves reflected the
dismantling of swap arrangements, the National Bank said.
    Banknotes in circulation rose by 834 mln francs to 24.79
billion while other deposits on call - mainly government funds
- fell 1.60 billion francs to 1.04 billion.


.I 12600
.C
grain;oat;
.W
USDA LIFTS CROSS-COMPLIANCE FOR 1987 CROP OATS.
    REPEAT FROM LATE FRIDAY
    WASHINGTON, Feb 27 - The USDA said it is lifting the
limited cross-compliance requirement for 1987 crop oats.
    Deputy Secretary Peter Myers said the action was being
taken to help alleviate the short supply of oats.
    Under limited cross compliance, the plantings of other
program crops on the farm may not exceed the crop acreage bases
of those crops.
    The lifting of the cross-compliance on oats permits the
planting of oats in excess of the oat acreage base without
sacrificing eligibility for other crop program benefits.
    Myers said soybean plantings are expected to decrease as a
result of the action on oats, planting of which are expected to
increase by two to three mln acres.


.I 12601
.C
acq
.W
******CONSOLIDATED TVX SAYS IT WILL ISSUE SHARES TO BUY STAKES IN THREE BRAZIL MINING FIRMS.
Blah blah blah.

.I 12603
.C
earn
.W
WHITTAKER CORP <WKR> 1ST QTR JAN 31 NET.
    LOS ANGELES, March 2 -
    Oper shr 17 cts vs 25 cts
    Qtly div 15 cts vs 15 cts prior
    Oper net 1,522,000 vs 3,501,000
    Sales 98.0 mln vs 86.3 mln
    NOTE: Prior year net excludes loss from discontinued
operations of 1,817,000 dlrs.
    Company said common shares outstanding down significantly
to 7,814,000, reflecting retirement of about 5,200,000 shares
since start of restructurining in August 1986.
    Dividend pay April 30, record April 16.


.I 12605
.C
earn
.W
STOP AND SHOP COS INC <SHP> 4TH QTR JAN 31 NET.
    BOSTON, March 2 -
    Oper shr 1.80 dlrs vs 1.46 dlrs
    Oper net 25.0 mln vs 20.2 mln
    Sales 1.09 billion vs 996.4 mln
    Avg shrs 13.9 mln vs 13.8 mln
    Year
    Oper shr 3.20 dlrs vs 2.57 dlrs
    Oper net 44.4 mln vs 35.4 mln
    Sales 3.87 billion vs 3.43 billion
    Avg shrs 13.9 mln vs 13.8 mln
    NOTES: Operating net excludes losses of 12.1 mln dlrs, or
87 cts a share, vs 321,000 dlrs, or two cts a share, in quarter
and 6.0 mln dlrs, or 43 cts a share, vs 5.1 mln dlrs, or 37 cts
a share, from discontinued operations. This includes provision
in latest quarter of 12.2 mln dlrs for closing of Almys
Department Store Co.
    Operating net in latest quarter and year includes 750,000
dlrs charge for restructuring announced in early January


.I 12606
.C
earn
.W
JIM WALTER CORP <JWC> REGULAR DIVIDEND.
    TAMPA, Fla., March 2 -
    Qtly div 35 cts vs 35 cts in prior qtr
    Payable April one
    Record March 14


.I 12607
.C
acq
.W
DIAGNOSTIC <DRS> MAKES A BID FOR ROSPATCH <RPCH>.
    OAKLAND , N.J., March 2 - Diagnostic Retrieval Systems Inc
said it has made an offer to acquire, through a wholly owned
unit, all outstanding shares of Rospatch Corp's common stock
for 22 dlrs a share cash, or about 53 mln dlrs.
    DRS, a warfare systems producer, said it would make the
transaction through a cash tender offer for all, but not less
than 51 pct, of Rospatch's outstanding common stock followed by
a merger with Rospatch, a labels, high technology and wood
producer, at the same purchase price per share.
    DRS said the deal is subject to approval by the Rospatch
board, and the tender offer expires on March 6, 1986.


.I 12608
.C
dlr;wheat;grain;wool;
.W
RECORD N.Z. FUTURES VOLUMES TRADED IN FEBRUARY.
    WELLINGTON, March 2 - The volume of contracts traded on the
New Zealand Futures Exchange (NZFE) reached a record 25,559
contracts in February, the International Commodities Clearing
House (ICCH) said.
    The previous high was 22,583 contracts in December 1986.
    The ICCH said the value of the contracts traded in February
was 2.90 billion N.Z. Dlrs.
    The seven contracts currently traded on the NZFE are:
five-year government bonds, the share price index, 90-day bank
bills, 90-day prime commercial paper, the U.S. Dollar,
crossbred wool, and wheat.


.I 12618
.C
earn
.W
WHITTAKER <WKR> TO HAVE GAINS FROM SALES.
    LOS ANGELES, March 2 - Whittaker Corp said it will have a
gain on the sale of discontinued businesses after any operating
losses from the businesses up until the dates of disposition,
but it will defer reporting the gain until its restructuring
program hsa been substantially completed.
    The company said in the first quarter ended January 31,m it
completed the divestiture of its health maintenance
organization operations to Travelers Corp <TIC> , sold its
Whittar Steel Strip operations to <DofascoxInc> and sold its
equity investment in Bertram-Trojan Inc to an affiliate of
<Investcorp>.
    The company said it has entered into definitive agreements
to sell Whittaker General Medical Corp, Bennes MArrel SA of
France and Juster Steel Corp as well.
    The company said to date it has received proceeds of about
90 mln dlrs from divestitures and has used the funds to reduce
debt incurred in the repurchase of its common shares.
    Whittaker today reported first quarter earnings from
continuing operations fell to 1,522,000 dlrs from 3,501,000
dlrs a year before. The year-earlier figure excluded a
1,817,000 dlr loss from discontinued operations.


.I 12619
.C
acq
.W
THE JAPAN FUND <JPN> GETS BUYOUT OFFER.
    NEW YORK, March 2 - The Japan Fund Inc said it has received
an unsolicited offer from <Sterling Grace Capital Management
LP>, acting together with certain other persons and entities,
to purchase all the assets of the fund at five pct below its
aggregate net asset value.
    The Japan Find said tne deal is subject to obtaining
satisfactory financing and a due diligence review.
    It added that the proposal has been referred to its Board
of Directors for consideration.


.I 12621
.C
earn
.W
<SAMSUNG CO> CALENDAR 1986.
    SEOUL, March 2 -
    Div 50 won vs 50 won
    Net profit 6.91 billion won vs 6.10 billion
    Sales 4,275.4 billion vs 3,801,7 billion
    Note - Company has set 1987 sales target of 4,800 billion
won.


.I 12622
.C
earn
.W
<DAEWOO CORP> CALENDAR 1986.
    SEOUL, March 2 -
    Div 50 won vs 50 won
    Net profit 35.4 billion won vs 34.2 billion
    Sales 4,214.9 billion won vs 3,779.2 bilion
    Note - company has set 1987 sales target of 5,200 billion.


.I 12623
.C
acq
.W
******CORNING TO OFFER 0.5165 SHARE FOR EACH HAZLETON SHARE UNDER EARLIER AGREEMENT.
Blah blah blah.

.I 12624
.C
acq
.W
BANK OF NEW YORK <BK> TO HAVE GAIN ON UNIT SALE.
    NEW YORK, March 2 - Bank of New York Co said it and the
management of RMJ Securities Corp have agreed to sell 80 pct of
their interests in RMJ Holding Corp to <British and
Commonwealth Holdings PLC> and Bank of New York expects to
realize a substantial gain on the transaction.
    RMJ Holding is the holding company for RMJ Securities, a
large broker of U.S. government securities and agency
obligations  Bank of New York owns a majority interest in RMJ
Holding and management of RMJ Securities the remainder.
    Bank of New York said the sale is expected to be completed
during the second quarter.
    It said it and RMJ Securities management will continue to
own 20 pct of RMJ Holding for now, but the agreement provides
for the sale of that remaining interest to British and
Commonwealth over the next six years.


.I 12625
.C
acq
.W
CORNING <GLW>, HAZLETON <HLC> SET EXCAHNGE RATIO.
    CORNING, N.Y., March 2 - Corning Glass Works said the
exchange ratio for its previously announced acquisition of
Hazleton Laboratories Corp has been established at 0.5165
Corning common share for each Hazleton common share.
    Corning said the prospectus regarding the merger is
expected to be mailed tomorrow to all Hazleton holders of
record February 18. Hazleton shareholders will vote on the
proposed merger at a special meeting on March 31.


.I 12626
.C
livestock;l-cattle;
.W
HEALTH EXPERTS URGE ERADICATION OF RINDERPEST.
    ROME, March 2 - World animal health experts called for a
campaign to eradicate the lethal cattle disease Rinderpest in
Bangladesh, Bhutan, India, Nepal and Pakistan, a statement from
a Food and Agriculture Organization (FAO) meeting here said.
    Some 230 mln dlrs is needed over two years to vaccinate the
entire susceptible cattle population in Bangladesh and Pakistan
and high-risk areas of the other three countries. In India some
240 mln cattle are estimated to be at risk from the disease.
    The experts recommended the campaign be funded mostly by
the governments of the five nations, with help from the FAO.
Similar campaigns are needed in Egypt, Yemen, Iraq and Iran.


.I 12627
.C
retail
.W
TURKISH RETAIL PRICES RISE 2.7 PCT IN FEBRUARY.
    ANKARA, March 2 - Turkish retail prices rose 2.7 pct in
February after 2.9 pct in January and 1.7 pct in February 1986,
the State Statistics Institute said.
    Prices in the year to February rose 31.6 pct, compared with
30.3 pct in the year to January and 38.8 pct in the 12 months
to February 1986.
    The index (base 1978/79), covering 14 towns and five
regions, was 1,886.8 in February, 1,837.2 in January and
1,434.0 in February 1986.


.I 12630
.C
acq
.W
BALLY <BLY> COMPLETES PURCHASE OF GOLDEN NUGGET.
    CHICAGO, March  2 - Bally Manufacturing Corp said it
completed the acquisition of the Golden Nugget Casino Hotel in
Atlantic City, New Jersey from Golden Nugget Inc.
    Bally also acquired from Golden Nugget various parcels of
real estate in Atlantic City, it noted.
    The transaction included 140 mln dlrs in cash and stock and
the assumption of a 299 mln dlrs mortgage.


.I 12631
.C
acq;gold;platinum;
.W
CONSOLIDATED TVX TO BUY BRAZIL GOLD MINE STAKES.
    TORONTO, March 2 - <Consolidated TVX Mining Corp> said it
agreed to issue 7.8 mln treasury shares to acquire interests in
three gold mining companies in Brazil and an option to increase
the company's interest in a platinum property.
    The company said the transactions will bring immediate
production and earnings to Consolidated TVX, enhance its
precious metal potential and is expected to improve cash flow
and earnings on a per share basis. The company did not give
specific figures.
    Consolidated TVX said it will acquire 29 pct of CMP, a
public gold mining company in which TVX already holds a 15 pct
interest, making TVX the largest single shareholder.
    The company also agreed to acquire a 19 pct stake in Novo
Astro, a private company, and a 16 pct interest in Teles Pires
Mining, increasing the TVX's ownership to 51 pct.
    In addition, Consolidated TVX said it will acquire the
right to add a 10 pct interest to a platinum property in which
it already owns a 29.4 pct stake.
    CMP earned 11 mln Canadian dlrs in 1986 and expects to
produce 42,000 ounces of gold in 1987 at a cost of 160 U.S.
dlrs an ounce, Consolidated TVX said.
    Novo Astro operates Brazil's richest gold mine located in
Amapa State, with an average grade of 0.8 ounces of gold a ton
in a hardrock quartz vein, Consolidated TVX said. Mining of
eluvial surface material produced 25,000 ounces in 1986 and is
expected to produce 60,000 ounces in 1987.
    It also said Teles Pires Mining controls rights to a 350
kilometer section of the Teles Pires River, where one dredge is
expected to produce 10,000 ounces of gold in 1987.


.I 12632
.C
earn
.W
WARWICK INSURANCE MANAGERS INC <WIMI> 4TH QTR.
    MORRISTOWN, N.J., March 2 -
    Oper shr 17 cts vs 19 cts
    Oper net 636,000 vs 358,000
    Revs 10.6 mln vs 7,024,000
    Avg shrs 3,808,000 vs 1,924,000
    Year
    Oper shr 73 cts vs 65 cts
    Oper net 2,467,000 vs 1,199,000
    Revs 31.5 mln vs 22.9 mln
    Avg shrs 3,372,000 vs 1,785,000
    NOTE: Net excludes investment gains 20,000 dlrs vs 86,000
dlrs in quarter and 586,000 dlrs vs 195,000 dlrs in year.
    1985 year net excludes 304,000 dlr tax credit.
    Share adjusted for one-for-two reverse split in November
1985.


.I 12633
.C
ipi
.W
CANADA INDUSTRIAL PRICES UP 0.2 PCT IN MONTH.
    OTTAWA, March 2 - Canada's industrial product price index
rose 0.2 pct in January after falling 0.2 pct in each of the
two previous months, Statistics Canada said.
    The rise was led by price gains for papers, pharmaceuticals
and petroleum and coal products. Price declines were recorded
for meat products, lumber and motor vehicles.
    On a year over year basis, the federal agency said the
index fell 0.9 pct in January, the largest yearly decline on
record.


.I 12638
.C
earn
.W
******GELCO CORP 2ND QTR SHR 67 CTS VS 23 CTS.
Blah blah blah.

.I 12639
.C
earn
.W
STROBER ORGANIZATION INC <STRB> 4TH QTR NET.
    NEW YORK, March 2 -
    Shr 22 cts vs 17 cts
    Net 1,232,000 vs 834,000
    Sales 24.1 mln vs 20.9 mln
    Avg shrs 5,609,000 vs five mln
    Year
    Shr 97 cts vs 69 cts
    Net 4,985,000 vs 3,426,000
    Sales 92.4 mln vs 77.9 mln
    Avg shrs 5,153,000 vs five mln


.I 12642
.C
crude
.W
******SHELL CANADA CUTS CRUDE OIL PRICES BY UP TO 1.27 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE.
Blah blah blah.

.I 12644
.C
earn
.W
BRENCO INC <BREN> DECLARES QTLY DIVIDEND.
    PETERSBURG, Va., March 2 -
    Qtly div three cts vs three cts prior
    Pay April six
    Record March 20


.I 12647
.C
earn
.W
MASSACHUSETTS INVESTORS GROWTH STOCK FUND PAYOUT.
    BOSTON, March 2 -
    Qtly div from income 5.1 cts vs 3.035 dlrs in prior qtr
including capital gains of 2.978 dlrs
    Payable March 27
    Record February 27


.I 12649
.C
earn
.W
<PREMDOR INC> 4TH QTR NET.
    TORONTO, March 2 -
    Shr 35 cts vs 25 cts
    Net 1,590,000 vs 1,140,000
    Revs 32.2 mln vs 23.0 mln
    YEAR
    Shr 1.16 dlrs vs 68 cts
    Net 5,300,000 vs 3,100,000
    Revs 110.0 mln vs 85.4 mln


.I 12650
.C
acq
.W
AMERICAN NURSERY <ANSY> BUYS FLORIDA NURSERY.
    TAHLEQUAH, OKLA., March 2 - American Nursery Products Inc
said it purchased Miami-based Heinl's Nursery Inc, for
undisclosed terms.
    Heinl's Nursery has sales of about 4.5 mln dlrs and owns
100 acres, of which 75 are in shade houses and about 58,300
square feet cover greenhouses, shipping and office facilities.


.I 12653
.C
earn
.W
MFS MANAGED SECTORS TRUST DIVIDEND INCREASED.
    BOSTON, March 2 -
    Semi-annual div from income of 7.3 cts vs 1.0 cent in prior
period
    Payable March 27
    Record February 27


.I 12656
.C
earn;acq;
.W
MULTI-STEP TO SELL LADDER UNIT, CANCEL SHARES.
    TORONTO, March 2 - <Multi-Step Products Inc>, earlier
reporting an initial six month loss, said it agreed to sell
wholly owned Multi-Step Manufacturing Inc for 100,000 dlrs
cash, subject to shareholder and regulatory approval.
    Multi-Step also said it will pay 900,000 dlrs to cancel
711,192 of its own shares, which will be acquired from Michael
Penhale and his benficiaries. Penhale will control and manage
Multi-Step Manufacturing, following the transactions.
    Multi-Step had a 739,146 dlr loss for the six months ended
December 31. The company received its initial public listing in
December.
    The company said its ladder-making unit has been losing
300,000 dlrs quarterly.
    The sale, expected to close in April, also calls for
retirement of the unit's 400,000 dlr bank debt, Multi-Step
said. The unit also has agreed to pay a debt of 400,000 dlrs to
Tarxien Company Ltd, which is 40 pct owned by Multi-Step.
    Multi-Step previously said it agreed to acquire the
remaining 60 pct of Tarxien it does not already own.


.I 12657
.C
acq
.W
ESSELTE BUSINESS <ESB> UNIT BUYS ANTONSON UNIT.
    GARDEN CITY, N.Y., March 2 - Esselte Business Systems Inc's
Esselte Meto division said it has acquired the Antonson America
Co, a subsidiary of <Antonson Machines AB>, of Sweden.
    Esselte said the Antonson unit, based in LaPorte, Indiana,
manufactures scales and label printers. The company said the
purchase is part of a plan to increase the range of retail
electronic scales being offered by Esselte in the U.S.
    It said the acquisition will enble Esselte to increase its
distribution base in its effort to grow in the U.S.


.I 12658
.C
money-fx;interest;
.W
FED EXPECTED TO ADD TEMPORARY RESERVES.
    NEW YORK, March 2 - 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 a fairly large round, two billion dlrs or more, of
customer repurchase agreements. The Fed may add the reserves
directly instead via System repurchases.
    Federal funds, which averaged 6.02 pct on Friday, opened at
6-1/8 pct and traded between there and 6-1/16 pct. Funds are
under upward pressure from settlement of recently sold two-year
notes and from a Treasury tax and loan call on banks.


.I 12661
.C
acq
.W
FOUR SEASONS BUYING MARRIOTT <MHS> HOTEL.
    TORONTO, March 2 - <Four Seasons Hotels Inc> and VMS Realty
Partners said they agreed to acquire the Santa Barbara Biltmore
Hotel in California from Marriott Corp, for undisclosed terms.
    Closing was expected by March 31, they added.
    The companies said they would jointly own the hotel and
rename it the Four Seasons Biltmore at Santa Barbara. They said
they would spend more than 13 mln U.S. dlrs "to enhance the
Biltmore's position as one of the finest resort hotels in North
America." Chicago-based VMS Realty is a real estate and
development firm.


.I 12663
.C
earn
.W
STONE <STO> SPLITS STOCK, RAISES PAYOUT.
    CHICAGO, March 2 - Stone Container Corp said it is
splitting its common stock 2-for-1 and increasing its dividend
33-1/3 pct.
    The dividend of 20 cts a share, an increase of five cts
over the prior 15 cts a share on pre-split shares, is payable
June 12 to holders of record May 22.
    The stock split also is payable June 12 to holders of
record May 22.


.I 12666
.C
earn
.W
S-K-I LTD <SKII> 2ND QTR JAN 25 NET.
    KILLINGTON, Vt., March 2 -
    Shr 81 cts vs 57 cts
    Net 3,660,273 vs 2,437,914
    Rev 28.5 mln vs 23.1 mln
    Six months
    Shr 29 cts vs 12 cts
    Net 1,325,755 vs 483,559
    Rev 31.7 mln vs 26.4 mln


.I 12667
.C
earn
.W
KAPOK CORP <KPK> YEAR SEPT 30 LOSS.
    CLEARWATER, Fla., March 2 -
    Shr loss 20 cts vs profit 96 cts
    Net loss 499,000 vs profit 2,369,000
    Revs 11.5 mln vs 10.3 mln
    NOTE: Prior year net includes gain on sale of property of
4,557,000 dlrs.


.I 12669
.C
oilseed
.W
CARGILL U.K. STRIKE TALKS POSTPONED.
    LONDON, March 2 - Talks due today between management and
unions to try to end the strike at Cargill U.K. Ltd's Seaforth
oilseed crushing plant have been rescheduled for Thursday, a
company spokesman said.
    Oilseed processing at the plant has been halted since
December 19 when mill workers walked out in protest at new
contract manning levels.


.I 12671
.C
gold;silver;
.W
AMAX <AMX> IN GOLD, SILVER FIND.
    GREENWICH, March 2 - AMAX Incx said it has identified
additional gold and silver ore reserves at its AMAX Sleeper
Mine near Winnemucca, Nev..
    It said as a result of recent drilling, reserves at thhe
mine are now estimated at 2,470,000 short tons of ore grading
0.24 ounce of gold and 0.50 ounce of silver per ton that is
treatable by conventional milling techniques.
    AMAX said additional reserves amenable to heap leaching are
estimated at 38.3 mln tons averaging 0.025 ounce gold and 0.24
ounce silver per ton.  Further drilling is being conducted, it
said.


.I 12672
.C
crude
.W
STUDY GROUP URGES INCREASED U.S. OIL RESERVES.
    WASHINGTON, March 2 - A study group said the United States
should increase its strategic petroleum reserve to one mln
barrels as one way to deal with the present and future impact
of low oil prices on the domestic oil industry.
    U.S. policy now is to raise the strategic reserve to 750
mln barrels, from its present 500 mln, to help protect the
economy from an overseas embargo or a sharp price rise.
    The Aspen Institute for Humanistic Studies, a private
group, also called for new research for oil exploration and
development techniques.
    It predicted prices would remain at about 15-18 dlrs a
barrel for several years and then rise to the mid 20s, with
imports at about 30 pct of U.S. consumption.
    It said instead that such moves as increasing oil reserves
and more exploration and development research would help to
guard against or mitigate the risks of increased imports.


.I 12673
.C
earn
.W
K-TRON INTERNATIONAL INC <KTII> 4TH QTR NET.
    PITMAN, N.J., March 2 -
    Oper shr profit 36 cts vs loss 1.48 dlrs
    Oper net profit 1,353,000 vs loss 5,551,000
    Revs 11.3 mln vs 8,142,000
    Year
    Oper shr profit 31 cts vs loss 1.58 dlrs
    Oper net profit 1,165,000 vs loss 5,919,000
    Revs 38.0 mln vs 31.6 mln
    NOTE: Net includes pretax unusual gain 64,000 dlrs vs loss
4,744,000 dlrs in quarter and losses 3,0077,000 dlrs vs
4,744,000 dlrs in year.  1986 items include settlement of
patent suit and provision for investment writeoff and 1985 item
provision for loss on sale of scale business.
    1986 net both periods excludes 400,000 dlr tax credit.


.I 12677
.C
earn
.W
PRESIDENTIAL REALTY CORP <PDO> ANNUAL NET.
    WHITE PLAINS, N.Y., March 2 -
    Shr 1.65 dlrs vs 1.50 dlrs
    Net 5,370,000 vs 4,901,000
    Rev 8.4 mln vs 7.8 mln
    NOTE: 1986 net gain from property investments 717,000 dlrs,
or 22 cts per share, vs 721,000 dlrs, or 22 cts per share.


.I 12679
.C
acq
.W
REDSTONE DETAILS SWEETENED VIACOM <VIA> OFFER.
    WASHINGTON, March 2 - Investor Sumner Redstone, who leads
one of the two groups vying for control of Viacom International
Inc, offered to sweeten his bid for the company by 1.50 dlrs a
share cash and 1.50 dlrs in securities.
    In a filing with the Securities and Exchange Commission,
Redstone, who controls Dedham, Mass.,-based National Amusements
Inc, a theater chain operator, offered to raise the cash
portion of its Viacom offer to 42 dlrs a share from 40.50 dlrs.
    Redstone also raised the face value of the preferred stock
he is offering to 7.50 dlrs from six dlrs.
    The Redstone offer, which is being made through Arsenal
Holdings Inc, a National Amusements subsidiary set up for that
purpose, which also give Viacom shareholders one-fifth of a
share of Arsenal common stock after the takeover.
    Viacom said earlier today it received revised takeover bids
from Redstone and MCV Holdings Inc, a group led by Viacom
management which is competing with Redstone for control of the
company and already has a formal merger agreement with Viacom.
    The company did not disclose the details of the revised
offers, but said a special committee of its board would review
them later today.
    The Redstone group, which has a 19.5 pct stake in Viacom,
and the management group, which has a 5.4 pct stake, have both
agreed not to buy more shares of the company until a merger is
completed, unless the purchases are part of a tender offer for
at least half of the outstanding stock.
    The two rivals also signed confidentiality agreements,
which give them access to Viacom's financial records provided
they keep the information secret.
    In his SEC filing, Redstone, who estimated his cost of
completing the takeover at 2.95 billion dlrs, said Bank of
America is confident it can raise 2.275 billion dlrs.
    Besides the financing it would raise through a bank
syndicate, Bank of America has also agreed to provide a
separate 25 mln dlr for the limited purpose of partial
financing and has committed to provide another 592 mln dlrs,
Redstone said.
    Merrill Lynch, Pierce Fenner and Smith Inc has increased
its underwriting commitment to 175 mln dlrs of subordinated
financing debt for the Viacom takeover, from the 150 mln dlrs
it agreed to underwrite earlier, Redstone said.
    Redstone said his group would contribute more than 475 mln
dlrs in equity toward the takeover.
    The Redstone equity contribution to the takeover would
consist of all of his group's 6,881,800 Viacom common shares
and at least 118 mln dlrs cash, he said.
    The new offer, the second sweetened deal Redstone has
proposed in his month-long bidding war with management, also
contains newly drawn up proposed merger documents, he said.
    Last week, the management group submitted what it called
its last offer for the company, valued at 3.1 mln dlrs and
consisting of 38.50 dlrs a share cash, preferred stock valued
at eight dlrs a share and equity in the new company. Redstone's
previous offer had been valued at 3.2 billion dlrs.


.I 12680
.C
acq
.W
MONTEDISON CONCLUDES TALKS WITH ANTIBIOTICOS.
    MILAN, March 2 - Montedison Spa <MONI.MI> said it has
concluded its negotiations with Spanish pharmaceuticals company
<Antibioticos SA>.
    A company spokesman told Reuters "We have concluded the
talks and we are now awaiting authorization from Spanish
authorities." He declined to comment further.
    Earlier today the Italian company postponed a scheduled
press conference on its talks with Antibioticos. An Italian
press report today said Montedison has agreed to acquire
Antibioticos for 500 billion lire.


.I 12681
.C
acq
.W
UTILICORP <UCU> COMPLETES ACQUISITION.
    KANSAS CITY, March 2 - UtiliCorp United Inc said it
completed the acquisition of West Virginia Power from Dominion
Resources for about 21 mln dlrs.
    The sale was approved by the West Virginia Public Service
Commission in January and became effective March one. West
Virginia's management will continue to be responsible for
operating the utility, it said.


.I 12684
.C
wheat;grain;barley;corn;
.W
TRADERS DETAIL FRENCH CEREAL EXPORT REQUESTS.
    PARIS, March 2 - French operators last Friday requested
licences to export 10,500 tonnes of free market maize, 11,950
tonnes of free market barley and 13,000 of soft wheat flour to
non-EC countries, at prefixed daily (droit commun) rebates,
French trade sources said.
    The latest requests for the maize were for export to
Switzerland, Austria and Lichtenstein at a maximum daily rebate
prefixed last Friday at 141 Ecus a tonne against a previous 20
Ecu daily rebate.
    The special daily rebate for maize was set in the context
of a Commission commitment to grant this season rebates for the
export of 500,000 tonnes of French maize to non-EC countries,
in compensation for concessions to the U.S. in the recent
dispute over grain sales to Spain.
    If the latest French requests are accepted as expected,
this will bring the total of French maize exported in this
context to 25,500 tonnes.
    The Commission last Thursday granted weekly rebates for the
sale of 15,000 tonnes of free market maize to non-EC countries.
    Requests for barley were for export to Switzerland, Austria
and Lichtenstein, Ceuta and Melilla at an unchanged pre-fixed
restitution of 125 Ecus a tonne, while requests for soft wheat
flour were for export to various non-EC countries at an
unchanged 178 Ecus a tonne.


.I 12685
.C
crude
.W
STUDY GROUP URGES INCREASED U.S. OIL RESERVES.
    WASHINGTON, March 2 - A study group said the United States
should increase its strategic petroleum reserve to one mln
barrels as one way to deal with the present and future impact
of low oil prices on the domestic oil industry.
    U.S. policy now is to raise the strategic reserve to 750
mln barrels, from its present 500 mln, to help protect the
economy from an overseas embargo or a sharp price rise.
    The Aspen Institute for Humanistic Studies, a private
group, also called for new research for oil exploration and
development techniques.
    It predicted prices would remain at about 15-18 dlrs a
barrel for several years and then rise to the mid 20s, with
imports at about 30 pct of U.S. consumption.
    The study cited two basic policy paths for the nation: to
protect the U.S. industry through an import fee or other such
device or to accept the full economic benefits of cheap oil.
    But the group did not strongly back either option, saying
there were benefits and drawbacks to both.
    It said instead that such moves as increasing oil reserves
and more exploration and development research would help to
guard against or mitigate the risks of increased imports.


.I 12687
.C
acq
.W
CARBIDE <UK> LOOKS TO ACQUISITIONS FOR GROWTH.
    NEW YORK, March 2 - Union Carbide Corp is looking to
acquisitions and joint ventures to aid its chemicals and
plastics growth, according the H.W. Lichtenberger, president of
Chemicals and Plastics.
    Describing this as a major departure in the company's
approach to commercial development, he told the annual new
business forum of the Commercial Development Association "We
are looking to acquisitions and joint ventures when they look
like the fastest and most promising routes to the growth
markets we've identified."
    Not very long ago Union Carbide had the attitude "that if
we couldn't do it ourselves, it wasn't worth doing. Or, if it
was worth doing, we had to go it alone," Lichtenberger
explained.
    He said "there are times when exploiting a profitable
market is done best with a partner. Nor do we see any need to
plow resources into a technology we may not have if we can link
up profitably with someone who is already there."
    He said Carbide has extended its catalyst business that way
and is now extending its specialty chemicals business in the
same way.


.I 12688
.C
acq
.W
CORRECTED - BANKAMERICA NEGOTIATING SALE OF UNITS.
    FRANKFURT, February 27 - Bank of America NT and SA's
<BAC.N> West German branch said it is negotiating the sale of
Bankhaus Centrale Credit AG, a small local West German bank it
acquired in 1965, and of its West German Visa credit card
operation.
    Michael Seibel, Bank of America vice-president and regional
manager, said the negotiations were proceeding well. He
declined to give further details.
    Bank of America's West German branch lost some 32 mln marks
in 1985. The result includes profit and loss transfers from
Bankhaus Centrale Credit and the Visa organisation. The sale of
the units is part of the bank's worldwide restructuring plan.


.I 12689
.C
earn
.W
<FRANKLIN GOLD FUND> CUTS DIVIDEND.
    SAN MATEO, Calif., March 2 -
    Semi div 13 cts vs 18 cts prior
    Pay March 13
    Record March Two


.I 12691
.C
earn
.W
<FRANKLIN CALIFORNIA TAX-FREE INCOME FUND>PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 4.5 cts vs 4.5 cts prior
    Pay March 13
    Record March Two


.I 12692
.C
earn
.W
<FRANKLIN AGE HIGH INCOME FUND> SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 3.6 cts vs 3.6 cts prior
    Pay March 13
    Record March Two


.I 12694
.C
crude
.W
******PETRO-CANADA CUT CRUDE PRICES BY 1.43 CANADIAN DLRS/BBL EFFECTIVE MARCH ONE.
Blah blah blah.

.I 12695
.C
earn
.W
<FRANKLIN FEDERAL TAX-FREE INCOME FUND> PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 7.7 cts vs 7.7 cts prior
    Pay March 13
    Record March Two


.I 12696
.C
earn
.W
<FRANKLIN NEW YORK TAX-FREE INCOME FUND> PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 7.3 cts vs 7.3 cts prior
    Pay March 13
    Record March Two


.I 12697
.C
earn
.W
<FRANKLIN U.S. GOVERNMENT SECURITIES FUND>PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div six cts vs six cts prior
    Pay March 13
    Record March Two


.I 12699
.C
grain;corn;
.W
CANADA RULING ON U.S. CORN INJURY DUE THIS WEEK.
    WASHINGTON, March 2 - The Canadian government is expected
to announce later this week its final ruling whether U.S. corn
exports to Canada have injured Ontario corn growers, U.S.
government and farm group representatives said.
    The deadline for a final determination is March 7.
    U.S. officials said they are encouraged by the outcome in a
similar case covering European pasta imports. In that case,
Canada decided pasta imports, which take about ten pct of the
Canadian market, did not injure domestic producers. U.S. corn
exports represent only about five pct of the Canadian market.
    Canada slapped a 1.05 dlrs per bushel duty on U.S. corn
imports in November 1986, but reduced the duty to 85 cts last
month because the Canadian government said U.S. subsidies to 
corn producers were less than Canada earlier estimated.


.I 12700
.C
earn
.W
FIRST MISSISSIPPI CORP <FRM> SETS PAYOUT.
    TAMPA, Fla., March 2 -
    Qtly div six cts vs six cts prior
    Pay April 28
    Record March 31


.I 12701
.C
ship
.W
ROTTERDAM PORT UNION AND EMPLOYERS TO MEET.
    ROTTERDAM, March 2 - Dutch port and transport union, FNV,
agreed to an employers' request to reconvene abandoned peace
talks tonight to try to end strikes that have disrupted
Rotterdam's general cargo sector for the past six weeks, a
union spokesman said.
    Talks broke down Thursday when the union walked out after
employers tabled their final offer to end the strikes which
started January 19 in protest at planned redundancies of 800
from the sector's 4,000 workforce, starting with 350 this year.
    The employers' invitation to restart the talks comes on the
day a deadline set by Minister of Social Affairs Louw de Graaf
for a resolution of the dispute expires.
    De Graaf said if the dispute had not ended by today he
would withdraw the 10 mln guilder annual labour subsidy to the
sector.
    No comment was immediately available from the employers'
organization.


.I 12702
.C
money-fx;interest;
.W
******FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 12704
.C
earn
.W
JIM WALTER CORP <JWC> SETS PAYOUT.
    TAMPA, Fla., March 2 -
    Qtly div 35 cts vs 35 cts prior
    Pay April One
    Record March 14


.I 12705
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 2 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-3/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 12707
.C
earn
.W
JAPAN'S NTT FORECASTS PROFITS FALL IN 1987/88.
    TOKYO, March 2 - <Nippon Telegraph and Telephone Corp>
(NTT) expects its profits to fall to 328 billion yen in the
year ending March 31, 1988 from a projected 348 billion this
year, the company said.
    Total sales for the same period are expected to rise to
5,506 billion yen from a projected 5,328 billion this year, NTT
said in a business operations plan submitted to the Post and
Telecommunications Ministry.
    NTT said it plans to make capital investments of 1,770
billion yen in 1987/88, including 109 billion for research and
development, as against a total of 1,600 billion this year.


.I 12708
.C
iron-steel
.W
EC COMMISSION GIVEN PLAN TO SAVE STEEL INDUSTRY.
    By Gerrard Raven, Reuters
    BRUSSELS, March 2 - European Community steelmakers
presented the Executive Commission with a controversial plan
for the future of the industry which diplomats say it may be
forced reluctantly to accept.
    Under the plan steel output would remain subject to
restrictive quotas and imports would be firmly controlled for
years to come while steel firms undertook a massive
slimming-down operation to adjust capacity to lower demand.
    Industry Commissioner Karl-Heinz Narjes has proposed the
ending of the quota system by December 1988.
    He has proposed a return to the free market, which under EC
law is supposed to exist except in times of "manifest crisis."
    But diplomats said some ministers who meet to discuss this
idea on March 19 will argue that steel firms are in crisis in
their countries, with orders falling as customers switch to
alternative products and accounts firmly in the red.
    Ministers from the EC's major steel producing countries are
likely to shy away from Narjes' proposals and could back the
industry's own plan instead, in the hope of minimising the
political impact of plant closures, they said.
    Industry sources said the plan presented to Narjes by the
EC steelmakers' lobby group Eurofer would retain the quota
production system at least until the end of 1990.
    Eurofer said in a statement consultants working for it
identified scope for closing plants on a "voluntary" basis to
reduce capacity by 15.26 mln tonnes a year.
    Cuts were still insufficient in one production area, that
of hot rolled coils, and further talks were needed.
    Eurofer added the industry would need the support of the
Commission and governments in carrying out a closure program,
particularly with social costs such as redundancy payments.
    The EC steel industry has already shed 240,000 jobs this
decade while reducing annual capacity by 31 mln tonnes.


.I 12711
.C
earn
.W
DURO-TEST CORP <DUR> 2ND QTR JAN 31 NET.
    NORTH BERGEN, N.J., March 2 - 
    Shr 10 cts vs 14 cts
    Net 531,896 vs 727,781
    Revs 16.0 mln 16.8 mln
    Six mths
    Shr 30 cts vs 39 cts
    Net 1,532,431 vs 2,000,732
    Revs 32.7 mln vs 34.5 mln


.I 12712
.C
earn
.W
<FRANKLIN UTILITIES FUND> SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Qtly div 14 cts vs 14 cts prior
    Pay March 13
    Record March Two


.I 12713
.C
earn
.W
GELCO CORP <GEL> 2ND QTR JAN 31 NET.
    EDEN PRAIRIE, MINN., March 2 -
    Shr 67 cts vs 23 cts
    Net 5,220,000 vs 3,143,000
    Revs 236.1 mln vs 256.2 mln
    Avg shrs 7.8 mln vs 13.7 mln
    Six Mths
    Shr 85 cts vs 59 cs
    Net 8,919,000 vs 8,158,000
    Revs 483.8 mln vs 515.5 mln
    Avg shrs 10.4 mln vs 13.7 mln
    NOTE: Fiscal 1987 second quarter and first half earnings
include a gain of 3.4 mln dlrs and exclude preferred dividend
requirements of five mln dlrs in the quarter and 5.6 mln dlrs
in the first half.
    Fiscal 1986 net reduced by currency losses equal to six cts
a share in the second quarter and equal to nine cts in the six
months.
   


.I 12714
.C
earn
.W
INTERNCHANGE FINANCIAL SERVICES <ISBJ> PAYOUT UP.
    SADDLE BROOK, N.J., March 2 -
    Qtly div 10 cts vs 8-1/3 cts prior
    Pay April 21
    Record March 20
    NOTE: Interchange Financial Services Corp.


.I 12715
.C
acq
.W
KAPOK CORP <KPK> IN TECHNICAL DEFAULT.
    CLEARWATER, Fla., March 2 - Kapok Corp said it is in
techical default of its loans from Southeast Banking Corp <STB>
and Murray Steinfeld but is negotiating with the lenders.
    It said neither has declared the loans due.
    The company said it has agreed to sell the Peter Pan
Restaurant in Urbana, Md., for 1,100,000 dlrs, or one mln dlrs
after the payment of expenses.


.I 12716
.C
earn
.W
NEWPORT CORP <NESP> 2ND QTR JAN 31 NET.
    FOUNTAIN VALLEY, Calif., March 2 -
    Shr 11 cts vs 13 cts
    Net 1,037,690 vs 1,270,460
    Sales 10.1 mln vs 9,215,836
    Six Mths
    Shr 25 cts vs 31 cts
    Net 2,319,376 vs 2,930,507
    Sales 21.2 mln vs 18.9 mln


.I 12717
.C
earn
.W
KAPOK CORP <KPK> 1ST QTR DEC 31 LOSS.
    CLEARWATER, Fla., March 2 -
    Shr loss 14 cts vs loss 21 cts
    Net loss 353,000 vs loss 541,000
    Revs 2,668,000 vs 2,525,000
    Avg shrs 2,452,3000 vs 2,552,300


.I 12718
.C
earn
.W
PREFERRED HEALTHCARE LTD <PHCC> 4TH QTR NET.
    WILTON, Conn, March 2 - 
    Shr six cts vs four cts
    Net 383,189 vs 241,857
    Revs 1,506,756 vs 793,459
    12 mths
    Shr 24 cts vs 15 cts
    Net 1,520,797 vs 929,017
    Revs 5,268,486 vs 2,617,995


.I 12719
.C
earn
.W
TRANZONIC COS <TNZ> SETS QUARTERLY.
    CLEVELAND, March 2 -
    Qtly div 11 cts vs 11 cts prior
    Pay April 17
    Record March 20


.I 12721
.C
earn
.W
CRONUS INDUSTRIES INC <CRNS> 4TH QTR LOSS.
    DALLAS, March 2 -
    Oper Shr loss 40 cts vs loss 10 cts
    Oper net loss 2,136,000 vs loss 467,000
    Revs 21.9 mln vs 12.9 mln
    12 mths
    Oper shr loss 63 cts vs loss 30 cts
    Oper net loss 3,499,000 vs loss 1,756,000
    Revs 82.0 mln vs 54.5 mln
    NOTE: Excludes income from discontinued operations of
1,478,000 vs 952,000 for qtr, and 31.2 mln vs 6,500,000 for
year.
    Excludes extraordinary charge of 2,503,000 for current qtr,
and 4,744,000 for year.


.I 12722
.C
earn
.W
MERCURY ENTERTAINMENT CORP <MCRY> YEAR NOV 30.
    LOS ANGELES, March 2 -
    Shr loss four cts vs loss one ct
    Net loss 413,021 vs loss 163,932
    Revs 600,971 vs 665,800


.I 12724
.C
earn
.W
BENGUET CORP <BE> CALENDAR 1986.
    MANILA, March 2 -
    Net income 154.7 mln pesos vs 127.5 mln
    Operating revenues 4.42 billion vs 3.3 billion
    Operating profit 621.2 mln vs 203.4 mln
    Earnings per share 4.80 vs 3.95
    NOTE: Company statement said gold operations contributed 74
pct of consolidated earnings.


.I 12726
.C
crude
.W
UNOCAL <UCL> UNIT CUTS CRUDE OIL POSTED PRICES.
    LOS ANGELES, March 2 - Unocal Corp's Union Oil Co said it
lowered its posted prices for crude oil one to 1.50 dlrs a
barrel in the eastern region of the U.S., effective Feb 26.
    Union said a 1.50 dlrs cut brings its posted price for the
U.S. benchmark grade, West Texas Intermediate, to 16 dlrs.
Louisiana Sweet also was lowered 1.50 dlrs to 16.35 dlrs, the
company said.
    No changes were made in Union's posted prices for West
Coast grades of crude oil, the company said.


.I 12727
.C
nat-gas
.W
PANHANDLE'S <PEL> TRUNKLINE REDUCES GAS RATES.
    HOUSTON, March 2 - Panhandle Eastern Corp's Trunkline Gas
Co pipeline subsidiary said it is reducing the commodity
component of its wholesale natural gas rate four pct, effective
immediately.
    In a filing with the Federal Energy Regulatory Commission,
Trunkline said, it is reducing its commodity rate -- the
portion of the total rate based on the price of gas -- to 2.58
dlrs per mln Btu from 2.69 dlrs per mln Btu.
    The company said the lower rate results from a reduction in
the average price the pipeline is paying for gas, adding this
reflects contract reformation agreemats with producers.


.I 12728
.C
acq
.W
INVESTOR GROUP HAS TALKS WITH PESCH ON AMI <AMI>.
    WASHINGTON, March 2 - WEDGE Group Inc, a Houston investment
firm with a 5.5 pct stake in American Medical International
Inc, said it has had talks with Pesch and Co, which is seeking
control of the company.
    In a filing with the Securities and Exchange Commission,
WEDGE, which is owned by Issam Fares, a Lebanese citizen living
in Switzerland, also said it discussed the possibility of
joining with others in its own bid to seek control of AMI.
    WEDGE stressed that it has no current plans to seek control
of AMI, but refused to rule out a takeover try in the future.
    WEDGE said it has had discussions with AMI management,
Pesch, the closely held health care and investment concern
controlled by Chicago physician LeRoy Pesch, and other AMI
shareholders.
    It did not specify in its SEC filing which issues --
selling its AMI stake or joining with others in a takeover try
-- were discussed with which group. But it said the talks did
not produce any agreements or understandings.
    WEDGE said it believes that "some form of restructuring of
AMI and its business would be highly desirable and appropriate
at this time."
    WEDGE, which holds 4.8 mln shares of AMI common stock, said
it plans to hold further talks with company management, Pesch
and other shareholders.
    Pesch last week sweetened his bid for the company to 22
dlrs a share in cash and securties, or 1.91 billion dlrs based
on AMI's total outstanding, from an all-cash 20 dlr a share
bid, which the company rejected.


.I 12729
.C
earn
.W
I.M.S. INTERNATIONAL INC <IMSI> SETS QUARTERLY.
    NEW YORK, March 2 -
    Qtly div four cts vs four cts prior
    Pay March 27
    Record March 13


.I 12730
.C
acq
.W
BANNER <BNR> COMPLETES TENDER FOR REXNORD <REX>.
    NEW YORK, March 2 - Banner Industries Inc said 19.8 mln of
the outstanding 20 mln shares in Rexnord Inc were tendered
pursuant to its 26.25 dlr a share offer that closed at midnight
EST Feb 27.
    Together with the five mln Rexnard shares it already owns,
the company said it now holds a 97 pct stake in the company.
    It said the completion of the deal is subject to approval
by Rexnard holders and to other closing conditions. It expects
the deal to close in about 60 days.


.I 12731
.C
earn
.W
MUTUAL OF OMAHA INTEREST SHARES <MUO> QTLY DIV.
    OMAHA, Neb., March 2 - 
    Qtly div 36 cts vs 36 cts prior
    Pay April one
    Record March 13


.I 12733
.C
acq
.W
CORRECTED - BANKAMERICA NEGOTIATING UNITS SALE.
    FRANKFURT, March 2 - Bank of America NT and SA's <BAC.N>
West German branch said it is negotiating the sale of Bankhaus
Centrale Credit AG, a small local West German bank it acquired
in 1965, and of its West German Visa credit card operation.
    Michael Seibel, Bank of America vice-president and regional
manager, said the negotiations were proceeding well. He
declined to give further details.
    Bank of America's West German branch lost some 32 mln marks
in 1985. The result includes profit and loss transfers from
Bankhaus Centrale Credit and the Visa organisation. The sale of
the units is part of the bank's worldwide restructuring plan.
-- corrects year of loss in third paragraph in item which
originally ran February 27.


.I 12734
.C
acq
.W
OSR <OSRC> TO MAKE ACQUISITION.
    OLD BETHPAGE, N.Y., March 2 - OSR Corp said it has agreed
to acquire the properties and assets of Telcom International
Group for 10.5 mln common shares, which would give former
Telcom owners an 84 pct interest in the combined company.
    Telcom is an international film and television distributor.
 The assets being acquired consist mostly of distribution
rights to films valued at over one mln dlrs, the company said.
    OSR said as part of the acquisition agreement is is
required to sell its 80 pct interest in Standard Knickerbocker
Ltd, which makes jeans in Canada.
    OSR said it expects to net about 150,000 dlrs on the sale
of Standard Knickerbocker.
    The company said both transactions are subject to approval
by shareholders at a meeting to be held in April or May, it
said.


.I 12735
.C
earn
.W
MERCURY ENTERTAINMENT <MCRY> SEES BETTER RESULTS.
    LOS ANGELES, March 2 - Mercury Entertainment Corp said it
expects improved results in 1987.
    The company today reported a loss for the year ended
November 30 of 413,021 dlrs on revenues of 600,971 dlrs,
compared with a loss of 163,932 dlrs on revenues of 665,800
dlrs a year before.


.I 12736
.C
acq
.W
CRONUS INDUSTRIES INC <CRNS> SELLS UNIT.
    DALLAS, March 2 - Cronus Industries Inc said it agreed to
sell its heat transfer equipment business, Southwestern
Engineering Co, for a slight premium over book value, plus a
release of Cronus from liability on approximately three mln
dlrs of subsidiary indebtedness.
    The company said the sale to a subsidiary of Senior
Engineering Group PLC, a British company, will take place this
month.


.I 12737
.C
earn
.W
UNISYS CORP <UIS> SETS QUARTERLY.
    BLUE BELL, Pa., March 2 -
    Qtly div 65 cts vs 65 cts prior
    Pay May Seven
    Record April Seven


.I 12738
.C
earn
.W
JACOBSON <JCBS> VOTES SPLIT, INCREASES PAYOUT.
    JACKSON, MICH., March 2 - Jacobson Stores Inc said its
board voted a three-for-two stock split, payble March 30,
record March 13.
    In other action, Jacobson's directors approved an increase
in its quarterly dividend to 11 cts on a post split basis
payable April 14, record March 30.
    The new dividend rate represents a 32 pct increase over the
12-1/2 cts paid quarterly on a pre-split basis.


.I 12740
.C
earn
.W
HARLEY-DAVIDSON INC <HDI> 4TH QTR NET.
    MILWAUKEE, Wis., March 2-
    Oper shr 18 cts vs 51 cts
    Oper net 1,048,000 vs 1,870,000
    Revs 72.2 mln vs 73.5 mln
    Avg shrs 5,910,000 vs 3,680,000
    Year
    Oper shr 82 cts vs 72 cts
    Oper net 4,307,000 vs 2,637,000
    Revs 295.3 mln vs 287.5 mln
    Avg shrs 5,235,000 vs 3,680,000
    NOTE: Results exclude one-time gains of 223,000 or four cts
and 564,000 or 11 cts for 1986 qtr and year vs gains of
6,359,000 or 1.73 dlrs and 7,318,000 or 1.99 dlrs for prior
periods.
   


.I 12741
.C
acq
.W
<HOECHST AG> COMPLETES CELANESE <CZ> ACQUISITION.
    SOMERVILLE, N.J., March 2 - Hoechst AG of West Germany said
it has completed the acquisition of Celanese Corp.
    Hoechst acquired a majority of Celanese shares in a recent
tender offer at 245 dlrs per common share.


.I 12742
.C
acq
.W
AMERICUS TRUST <HPU> EXTENDS DEADLINE.
    NEW YORK, March 2 - Americus Trust for American Home
Products Shares said it extended its deadline for accepting
tendered shares until November 26, an extension of nine months.
    The trust, which will accept up to 7.5 mln shares of
American Home Products <AHP>, said it has already received
tenders for about four mln shares.
    The trust is managed by Alex. Brown and Sons Inc <ABSB> and
was formed November 26, 1986.


.I 12743
.C
earn
.W
MORSE SHOE INC <MRS> 4TH QTR NET.
    CANTON, Mass., March 2 - 
    Shr 59 cts vs 48 cts
    Net 3,244,000 vs 2,584,000
    Revs 169.3 mln vs 156.0 mln
    12 mths
    Shr 1.78 dlrs vs 1.32 dlrs
    Net 9,733,000 vs 7,164,000
    Revs 585.6 mln vs 541.0


.I 12745
.C
coffee
.W
ICO QUOTA TALKS CONTINUE, OUTCOME HARD TO GAUGE.
    LONDON, March 2 - Talks at the extended special meeting of
the International Coffee Organization (ICO) on the
reintroduction of export quotas continued, but chances of
success were still almost impossible to gauge, delegates said.
    Producer delegates were meeting to examine a Colombian
proposal to resume historical quotas from April 1 to September,
with a promise to define specific new criteria by which a new
quota system would be calculated in September for the new crop
year, they said.
    Opinions among delegates over the potential for reaching a
quota agreement varied widely.
    Some consumers said the mood of the meeting seemed slightly
more optimistic. But Brazil's unwillingness to concede any of
its traditional 30.55 pct of its export market share looks
likely to preclude any accord, other delegates said.
    No fresh proposals other than the Colombian initiative had
been tabled formally today, delegates said.
    A full council meeting was set for 1900 hours for a
progress report, delegates said.


.I 12860
.C
ship
.W
VERSATILE TO BUILD POLAR ICE BREAKER.
    OTTAWA, March 2 - Versatile Corp's shipbuilding subsidiary
has a letter of intent to build a 320 mln dlr polar icebreaker
for the Canadian coast guard, Transport Minister John Crosbie
said.
    In a Vancouver address, Crosbie said Versatile Pacific
Shipyards Inc was the low bidder to build the Arctic Class 8
icebreaker, but the company must meet certain financial and
engineering conditions before the contract is awarded.
    The government also announced it will provide up to 13 mln
dlrs in loan insurance to help Versatile prepare for the
construction of the vessel.
said before the contract can be awarded Versatile "will be
required to offer assurances that the shipyard is technically
and financially capable of performing the work."
    Crosibie said Versatile's bid was 100 mln dlrs lower than
competing bidders and will generate 1,000 person years of
direct employment.
    Work on the vessel, which Crosbie said would be the most
powerful icebreaker in the world, would begin next year and
completed in 1992.
    The government announced plans to build the icebreaker last
year following the controversial passage of the U.S. Coast
Guard's vessel, the Polar Sea, through the disputed Northwest
Passage. The U.S. government did not seek permission for the
journey, claiming the area was an international water way.
    The government said the icebreaker was needed to back up
the country's claim of sovereignty in the Arctic.


.I 12862
.C
acq
.W
<PANTRY INC> INB TALKS ON BEING ACQUIRED.
    SANFORD, N.C., March 2 - Privately-held Pantry Inc, which
operates 477 convenience stores in five Southeastern states,
said it has engaged Alex. Brown and Sons Inc <ABSB> to explore
a possbile sale of the company.
    It said it expects to start talks with prospective
acquirers shortly. The company said it has been approached by a
number of parties in recent months.


.I 12863
.C
earn
.W
CONGRESS VIDEO GROUP INC <CVGI> 3RD QTR NET.
    NEW YORK, March 2 - Qtr ends Dec 31
    Shr profit three cts vs loss three cts
    Net profit 129,000 vs loss 85,000
    Revs 4,001,000 vs 4,347,000
    Avg shrs 3,994,347 vs 3,769,347
    Nine mths
    Shr loss 75 cts vs profit 39 cts
    Net loss 2,900,000 vs profit 1,753,000
    Revs 7,472,000 vs 15.3 mln
    Avg shrs 3,845,438 vs 4,470,275
    NOTE: net 1986 includes tax gain carryforward from
discontinued operations of Master's Merchandise Group in year
prior.


.I 12865
.C
acq
.W
<RENOUF CORP> TO PROCEED WITH BENEQUITY <BH> BID.
    LOS ANGELES, March 2 - Renouf Corp of New Zealand said it
has decided to proceed with its offer for all outstanding units
of Benequity Holdings at 31 dlrs per unit.
    The company had been required to redice by March Two
whether to proceed with the offer or terminate it, based on its
ability to obtain financing and on its review of Benequity
operations.  The offer is to expire March 13.


.I 12867
.C
sugar
.W
CUBA TELLS TRADERS SUGAR EXPORTS MAY BE DELAYED.
    LONDON, March 2 - Cuba has told international sugar
operators who have bought its sugar for shipment in March that
these contracts will take second place to Cuba's direct
shipments to its export markets, dealers here said.
    Some traders who have received telexes from Cuba said the
language of the message was not totally clear and some believed
shipments would be honoured if the traders declare the Soviet
Union as the destination of their contracts.
    The telexes have fueled rising world prices in the last
week and reflect a poor Cuban crop, worry over Brazil's export
availability, and increasing Soviet demand, analysts said.
    Traders said signs of Cuba's shortage of immediately
available raw sugar to supply its traditional martkets was
probably the factor behind Syria calling a snap buying tender
last month.
    Normally Syria calls white sugar buying tenders for forward
delivery, and last month's spot requirement resulted in the
sale of several cargoes.
    Cuba in its telex told operators they would not receive
March shipments as Cuba has to meet its contracts to export
markets, traders said.


.I 12868
.C
rubber
.W
GOODRICH <GR> TO PHASE OUT SOME BUSINESSES.
    AKRON, Ohio, March 2 - B.F. Goodrich Co said it will phase
out the production of aircraft tires, missile and marine
products and molded rubber products in Akron, Ohio, by the end
of 1987, laying off about 790 salaried, production, maintenance
and support services employees.
    The company said layoffs will start within the next few
weeks.
    Goodrich said it will continue to make chemicals and
adhesives in Akron, employing about 356.  Another 5000 salaried
employees in Akron work for Goodrich.
    The company said it has not been able to operate the
businesses being discontinued in Akron profitably enough to
justify the large investment that it has in them.
    Goodrich said it will continue to make aircraft tires at
Norwood, N.C., and sonar domes at Jacksonville, Fla., and will
relocate its molded rubber products business to a site not yet
chosen.  It said it will stop making insulators for missiles.
    Goodrich said it is prepared to discuss with officials of
the United Rubber Workers Union severance benefits for affected
employees and issues related to the continued operation in
Akron of the chemical and adhesives businesses and to the
phaseout of the Akron aircraft tire, missile and marine and
molded rubber products manufacturing.
    A company spokesman said it does not expect any adverse
impact on earnings from the move.


.I 12869
.C
earn
.W
THUNANDER CORP <THDR> YEAR NET.
    ELKHART, Ind., March 2 -
    Shr 73 cts vs 58 cts
    Net 1,101,000 vs 901,000
    Sales 32.9 mln vs 29.1 mln
    Note: Results include operations of BMD of New England Inc,
acquired Sept. 1, 1986.


.I 12870
.C
earn
.W
FINAL TRUST FOR THRIFT INSTITUTIONS PAYOUT SET.
    BOSTON, March 2 - <Massachusetts Financial Services Co>
said it has set the final income and capital gain distributions
for <Trust for Thrift Institutions High Yield Series> of 1.069
dlrs and 7.645 dlrs, respectively, payable today.


.I 12871
.C
tin
.W
(RPT) U.S. SAYS TIN DISPOSALS WILL NOT AFFECT ACCORD.
    WASHINGTON, March 2 - U.S. tin disposals should have little
effect on an agreement reached last weekend by tin producing
countries to limit group exports to 96,000 tonnes in the year
started March 1, a government official said.
    The agreement by the seven-member Association of Tin
Producing Countries (ATPC) aimed to cut the world surplus and
boost prices. Following the accord, ATPC Chairman Subroto
appealed to the United States to restrict its tin releases from
its strategic stockpile.
    "We don't think that (the U.S. government) has a large
influence in the (tin) market at this stage of the game," said
Thomas O'Donnell, Director of International Commodities at the
State Department. Last year the United States released about
4,900 tonnes of tin to two ferroalloy firms.


.I 12872
.C
earn
.W
******ROSPATCH TO RESPOND TO DIAGNOSTIC BID.
Blah blah blah.

.I 12873
.C
earn
.W
FRANKLIN INSURED TAX-FREE SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 7.1 cts vs 7.1 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Insured Tax-Free Income Fund.


.I 12874
.C
earn
.W
FRANKLIN MINNESOTA INSURED SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 6.6 cts vs 6.6 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Minneosta Insured Tax-Free Income Fund.


.I 12875
.C
earn
.W
FRANKLIN MICHIGAN INSURED SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 6.9 cts vs 6.9 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Michigan Insured Tax-Free Income Fund.


.I 12876
.C
earn
.W
FRANKLIN MASSACHUSETTS INSURED CUTS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 6.5 cts vs 6.8 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Massachusetts Insured Tax-Free Income Fund.


.I 12877
.C
oilseed;wheat;grain;corn;soybean;
.W
******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS  SOYBEANS 20,349 WHEAT 14,070 CORN 21,989.
Blah blah blah.

.I 12878
.C
earn
.W
FRANKLIN CALIFORNIA TAX-FREE SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 6.5 cts vs 6.5 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin California Insured Tax-Free Income Fund.


.I 12879
.C
earn
.W
DIAGNOSTIC PRODUCTS <DPCZ> SEES EARNINGS GROWTH.
    NEW YORK, March 2 - Diagnostic Products Corp president and
chief executive officer Sigi Ziering said he expects to
maintain the same compound average annal net income growth in
1987 as the company has for the past five years.
    "We expect the same performance in net income over the next
five years as we have had in the past," Ziering said.
    Over the past five years Ziering said the company has had
average compound net income growth of 32 pct annually with a 27
pct per year growth in earnings per share. For 1986 the company
had net income of 6.3 mln dlrs, or 1.07 dlrs per share, vs 3.9
mln dlrs, or 73 cts per share in 1985.
    Diagnostic manufactures medical immunological diagnostic
test kits.
    Ziering said he expects the earnings growth to result from
positive effect of the weaker dollar on the company's exports
sales as well as accelerated market penetration. Ziering said
he expected the Food and Drug Administration to approve three
more of its drug abuse test kits by the end of the year, which,
depending on approval, should also help earnings growth.
    Ziering said as a result of the new tax laws he expected
the company's taxes to decrease by five pct to 31 pct of net
income in 1987.
   


.I 12880
.C
gold
.W
CURRENCIES COULD INFLUENCE BULLION AGAIN-MONTAGU.
    LONDON, March 2 - Currency fluctuations may reassert their
influence on the bullion market in the near future, bullion
bankers Samuel Montagu and Co Ltd said in a market report.
    But the firm said silver may lag behind gold in any
reactions to movements on foreign exchanges.
    "OPEC's failure to address the recent decline in oil prices
remains a worrying factor however, and on balance it appears
that the market should be approached cautiously," Montagu said.
    The bank said the US economy has shown no noticeable
long-term improvement and that both Latin American debt and the
Iranian arms affair could undermine confidence in the dollar.


.I 12881
.C
earn
.W
DUNKIN' DONUTS INC <DUNK> 1ST QTR JAN 24 NET.
    RANDOLPH, Mass., March 2 -
    Shr 46 cts vs 42 cts
    Net 3,418,000 vs 3,129,000
    Revs 24.7 mln vs 26.2 mln


.I 12882
.C
earn
.W
CCR VIDEO CORP <CCCR> 1ST QTR NOV 30 NET.
    LOS ANGELES, March 2 -
    Shr profit two cts vs loss 12 cts
    Net profit 156,726 vs loss 776,000
    Revs 1,157,883 vs 890,138


.I 12883
.C
earn
.W
FRANKLIN PUERTO RICO TAX-FREE SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 7.1 cts vs 7.1 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Puerto Rico Tax-Free Income Fund.


.I 12884
.C
earn
.W
FRANKLIN OHIO INSURED TAX-FREE SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 6.1 cts vs 6.1 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin Ohio Insured Tax-Free Income Fund.


.I 12885
.C
earn
.W
FRANKLIN HIGH-YIELD TAX-FREE SETS PAYOUT.
    SAN MATEO, Calif., March 2 -
    Mthly div 7.1 cts vs 7.1 cts prior
    Pay March 31
    Record March 16
    NOTE: Franklin High-Yield Insured Tax-Free Income Fund.


.I 12886
.C
acq
.W
CONVERGENT TECHNOLOGIES <CVGT> TO BUY OAKLEAF.
    SAN JOSE, Calif., March 2 - Convergent Technologies Inc
said it has reached an agreement in principle to buy Oakleaf
Corp, which supplies finance, insurance and leasing computers
to auto dealers.
    The transaction will involve an exchange of Oakleaf stock
for cash and debt and is subject to a definitive agreement, the
companys said. No other terms were disclosed.
    Oakleaf had 1986 sales of about 26 mln dlrs.


.I 12887
.C
crude
.W
NYMEX WILL EXPAND OFF-HOUR TRADING APRIL ONE.
     By BERNICE NAPACH, Reuters
     NEW YORK, March 2 - The New York Mercantile Exchange set
April one for the debut of a new procedure in the energy
complex that will increase the use of energy futures worldwide.
     On April one, NYMEX will allow oil traders that do not
hold a futures position to initiate, after the exchange closes,
a transaction that can subsequently be hedged in the futures
market, according to an exchange spokeswoman.
    "This will change the way oil is transacted in the real
world," said said Thomas McKiernan, McKiernan and Co chairman.
    Foreign traders will be able to hedge trades against NYMEX
prices before the exchange opens and negotiate prices at a
differential to NYMEX prices, McKiernan explained.
     The expanded program "will serve the industry because the
oil market does not close when NYMEX does," said Frank Capozza,
secretary of Century Resources Inc.
     The rule change, which has already taken effect for
platinum futures on NYMEX, is expected to increase the open
interest and liquidity in U.S. energy futures, according to
traders and analysts.
    Currently, at least one trader in this transaction, called
an exchange for physical or EFP, must hold a futures position
before entering into the transaction.
    Under the new arrangement, neither party has to hold a
futures position before entering into an EFP and one or both
parties can offset their cash transaction with a futures
contract the next day, according to exchange officials.
    When NYMEX announced its proposed rule change in December,
NYMEX President Rosemary McFadden, said, "Expansion of the EFP
provision will add to globalization of the energy markets by
providing for, in effect, 24-hour trading."
    The Commodity Futures Trading Commission approved the rule
change in February, according to a CFTC spokeswoman.


.I 12889
.C
acq
.W
ROSPATCH <RPCH> TO RESPOND TO DIAGNOSTIC <DRS>.
     GRAND RAPIDS, Mich., March 2 - Rospatch Corp said it will
have a news release later in response to today's acquisition
bid by Diagnostic Retrieval Systems Inc for 22 dlrs a share.
    Rospatch earlier requested its stock be halted in over the
counter trading, last trade 24-1/8.
    Diagnostic said its bid was for a total 53 mln dlrs through
a cash tender offer for all, but not less than 51 pct of
Rosptach outstanding common.
    For its fourth-quarter ended December 31, 1986, Rospatch
reported net loss 2,649,000 or 1.10 dlrs a share compared a
loss of 627,500 or 35 cts profit for the 1985 period.
    In December the Brookehill Group in New York said it had
9.7 pct stake. J.A. Parini, Rospatch chief executive, responded
on January eight by saying the investment was a vote in
confidence in the company.


.I 12890
.C
earn
.W
GREEN TREE ACCEPTANCE INC <GNT> SETS DIVIDEND.
    ST. PAUL, Minn., March 2 -
    Qtly dividend 12-1/2 cts vs 12-1/2 cts
    Pay March 31
    Record March 16


.I 12891
.C
crude;nat-gas;
.W
ARGENTINE OIL PRODUCTION DOWN IN JANUARY 1987.
    BUENOS AIRES, March 2 - Argentine crude oil production was
down 10.8 pct in January 1987 to 12.32 mln barrels, from 13.81
mln barrels in January 1986, Yacimientos Petroliferos Fiscales
said.
    January 1987 natural gas output totalled 1.15 billion cubic
metrers, 3.6 pct higher than 1.11 billion cubic metres produced
in January 1986, Yacimientos Petroliferos Fiscales added.


.I 12892
.C
acq
.W
******ROSPATCH CORP REJECTS OFFER FROM DIAGNOSTIC RETRIEVAL SYSTEMS INC.
Blah blah blah.

.I 12895
.C
acq
.W
NORTH AMERICAN GROUP <NAMG> BUYS GEORGIA FIRM.
    CHICAGO, March 2 - North American Group Ltd's North
American Acquisition Corp said it has a definitive agreement to
buy 100 pct of Pioneer Business Group Inc of Atlanta.
    Terms of the acquisition were not disclosed. Closing of the
acquisition is scheduled for April.
    North American Acquisition said the agreement is subject to
due diligence and a satisfactory review of Pioneer's operation.
Pioneer makes business forms.


.I 12897
.C
acq
.W
TALKING POINT/VIACOM INTERNATIONAL <VIA>.
    By Cal Mankowski, Reuters
    NEW YORK, March 2 - A bidding war for Viacom International
Inc, one of the largest U.S. entertainment companies, pitted a
management group and other investors against National
Amusements Inc, a closely held theater operator.
    Both sides raised their bids over the weekend. A source
close to the management side insisted that timing was on his
side. He said if outside directors approve the management
proposal, a merger plan could be put to a vote of shareholders
with proxy material going out late this week. "It would take 20
days from the day we mail," said the source.
    The source predicted National Amusements, controlled by
investor Sumner Redstone, would need "half a year" to complete
a tender offer because of the regulatory approvals that must
accompany any change in control of Viacom's broadcast licenses
and cable television franchises.
    Redstone was not available for comment.
    Some of Wall Street's arbitrage players said it was a rare
situation that could only be enjoyed - a true bidding war. One
said Redstone could begin a tender offer whenever he wanted and
if enough people were convinced his proposal was superior to
the Viacom management plan, he would have a chance to win.
    The independent directors of Viacom were called into a
meeting today. Word on a decision was expected early tomorrow.
    Viacom shares climbed 2-1/2 to 50-3/8 by midafternoon. One
major Wall Street firm issued a sell recommendation. "We think
we're at the end now, in terms of bidding," said the firm's
arbitrageur, who spoke on condition he not be identified.
    Both Redstone's proposal and the management proposal would
create a restructured company heavily leveraged with debt. The
management plan would result in a balance sheet with about 2.5
billion dlrs in debt and nearly 500 mln dlrs in preferred
stock, convertible into 45 pct of the common stock.
    Redstone's newest proposal offers holders 42 dlrs in cash,
a fraction of a share of exchangeable preferred stock with a
value of 7.50 dlrs, and one-fifth of a share of common stock
stock of Arsenal Holdings, representing 20 pct of the equity
interest in the restructured Viacom. One arbitrageur calculated
the equity in the Redstone plan was worth 2.50 dlrs making the
total package worth 52 dlrs per share.
    Management offered 38.50 dlrs in cash, exchangeable
preferred stock worth 8.50 dlrs and a fractional share of
convertible preferred. The arbitrageur said the equity portion
was worth about 4.00 dlrs for a total of 51 dlrs.
    Redstone's newest plan raised the amount of interest he
would pay on the cash portion of his offer for every day beyond
April 30 that a merger with Arsenal is not consummated. The
plan calls for intest to be paid at an annual rate of nine pct
during May and 12 pct thereafter. Previously Redstone offered
eight pct interest.
    Other arbitrageurs said both Redstone and the management
group, led by president and chief executive Terrence Elkes,
were offering high prices. "Redstone really wants to own the
company," one said. Another said management seemed to have the
edge on the timing issue.
    Redstone's company owns 19.6 pct ov Viacom's 35 mln shares.
    A Wall Street analyst said it was hard to determine what
the equity in the newly leveraged company would be worth. He
noted as an example that new stock in FMC Corp <FMC>, which
adopted a highly leveraged structure last year, inititally
traded at 12.50 dlrs per share, dipped to nine dlrs, and is now
just over 30 dlrs.
    Last week, Viacom reported fourth quarter earnings fell two
two cts per share from 23 cts. The company said interest costs
from several acquisitions affected results.
    Shares of Warner Communications Inc <WCI> rose 7/8 to
31-1/8. Analysts noted Warner owns warrants to purchase 3.25
mln Viacom shares at 35 dlrs and another 1.25 mln shares at
37.50 dlrs.
    Chris Craft Industries <CCN>, which owns a stake in Warner,
rose 1-1/4 to 22-3/4.
    Viacom was created in 1970 and spun off from CBS Inc <CBS>.
The company has 940,000 cable television subscribers, operates
nine satellite television services and owns television and
radio stations. It is one of the largest distributors of films
and other programs for television.


.I 12898
.C
earn
.W
UP-RIGHT INC <UPRI> 4TH QTR OPER NET.
    BERKELEY, Calif., March 2 -
    Oper shr five cts vs 29 cts
    Oper net 151,000 vs 867,000
    Revs 12.7 mln vs 14.1 mln
    Year
    Oper shr 87 cts vs 52 cts
    Oper net 2,650,000 vs 1,565,000
    Revs 54.7 mln vs 49.1 mln
    Note: oper data does not include 4th qtr 1986 extraordinary
credit of 14,000 dlrs or 4th qtr 1985 extraordinary loss of
139,000 dlrs, or five cts per shr. For year, does not include
extraordinary credit of 92,000 dlrs, or three cts per shr, in
1986 and 161,000 dlrs, or five cts per shr, in 1985.


.I 12901
.C
trade
.W
TALKS SHOW NEW CANADIAN CONFIDENCE, GROUP SAYS.
    WASHINGTON, March 2 - Canada's decision to raise the issue
of a free trade pact with the U.S. was a sign of what many see
as a new spirit of Canadian self-confidence, a public policy
study group said 
    "It suggests the Canada of the immediate post-war period,
when it was a major player in the process of building a postwar
world," the Washington-based Atlantic Council said.
    U.S. and Canadian negotiators opened talks last summer
aimed at dismantling trade barriers between the two countries,
the world's biggest trading partners with crossborder shipments
of about 150 billion dlrs annually.
    The council's study said the trade talks, with a deadline
of October for an agreement, are the biggest issue in
U.S.-Canadian relations.
   The study said liberalized trade between the two countries
would improve the competitiveness of their economies in world
markets and lessen trade irritants which now mar their ties.
    The council said "in the past most Canadians have shied away
from the notion of a free-trade arrangement, fearing to be
overwhelmed economically and politically by a closer
association with a country 10 times their size in population."
    But at the same time, it added, Canadians realized their
domestic market was too small to permit the mass production and
sales needed to raise productivity to the level demanded by an
increasingly competitive world.
    The council said that in the talks, Canada is chiefly
interested in minimizing the imposing of U.S. duties against 
allegedly subsidized exports.
    A recent example was the 15 per cent duty the U.S. imposed
on Canadian lumber exports on grounds the shipments were being
subsidized.
    The council said the chief U.S. concerns included ending
curbs against U.S. banking, insurance, telecommunications, and
the so-called "cultural industries" - publishing, broadcasting
and films.
    It said other major U.S.-Canadian issues were defense
cooperation, "acid rain" and the U.S. rejection of a Canadian
assertion of sovereignty over waters of the Northwest Passage.


.I 12905
.C
earn
.W
ALBERTSON'S INC <ABS> RAISES QTLY DIVIDEND.
    BOISE, Idaho, March 2 -
    Shr 24 cts vs 21 cts
    Pay May 25
    Record May eight


.I 12907
.C
acq
.W
WAVEHILL INTERNATIONAL TO MAKE ACQUISITION.
    NEW YORK, March 2 - <Wavehill International Ventures Inc>
said it has agreed to acquire Personal Computer Rental Corp of
Coral Gables, Fla., in a transaction in which shareholders of
Personal Computer will receive shares respresenting about a 25
pct interest in the combined company.
    The company said it will have about two mln shares
outstanding on a fully-diluted basis after the transaction. It
said after the acquisition it will infuse Perconal computer
with cash for expansion.  It said Personal Computer now has 26
franchised locations and plans to add over 30 in 1987, seeking
eventually to expand into 420 markets in the U.S. and abroad.


.I 12908
.C
acq
.W
SECURITY PACIFIC <SPC> COMPLETES MERGER.
    LOS ANGELES, March 2 - Security Pacific Corp said it
completed its planned merger with Diablo Bank following the
approval of the comptroller of the currency.
    Security Pacific announced its intention to merge with
Diablo Bank, headquartered in Danville, Calif., in September
1986 as part of its plan to expand its retail network in
Northern California.
    Diablo has a bank offices in Danville, San Ramon and Alamo,
Calif., Security Pacific also said.


.I 12911
.C
earn
.W
U.S. INTEC INC <INTK> 4TH QTR NET.
    PORT ARTHUR, March 2 -
    Shr six cts vs five cts
    Net 188,000 vs 130,000
    Revs 12.2 mln vs 10.1 mln
    Avg shrs 3,029,930 vs 2,764,544
    12 mths
    Shr 81 cts vs 1.45 dlrs
    Net 2,463,000 vs 3,718,000
    Revs 52.4 mln vs 47.5 mln
    Avg shrs 3,029,930 vs 2,566,680
    NOTE: net for 1985 includes 500,000, or 20 cts per share,
for proceeds of a life insurance policy.
    includes tax benefit for prior qtr of approximately 150,000
of which 140,000 relates to a lower effective tax rate based on
operating results for the year as a whole.


.I 12913
.C
earn;acq;
.W
ICI <ICI> SEEKS GAINS IN SPECIALTY BUSINESSES.
    NEW YORK, March 2 - Imperial Chemical Industries PLC, the
largest chemical company in the United Kingdom, will expand its
specialty chemicals and drug businesses this year, and better
its 1986 results, said chairman-elect Denys Henderson.
    "We expect to shift our company toward higher value-added
businesses and continue to broaden our base," Henderson told
reporters at an informal meeting here.
    ICI today announced the formation of a new U.S.
drug company, ICI Pharma, which, with its Stuart
Pharmaceuticals unit, it said will double its current
pharmaceutical sales to 1.1 billion dlrs by 1990.
    Henderson said, "Our pharmaceutical business gets lost in
the way that Glaxo's (Glaxo Holdings PLC) does not."
    ICI's pharmaceutical division is the second largest drug
maker behind Glaxo in the U.K. Last year U.S. drug sales were
about 40 pct of its worldwide drug sales of 1.5 billion dlrs,
which in turn brought in 27 pct of its total profits.
    He estimated that by 1990, ICI's pharmaceutical division
would account for about 30 pct of total company profits.
    "The drug division far and away brings in the highest rate
of return," said A.W. Clements, finance director of ICI, who
was also at the meeting.
    Henderson said the new U.S. drug concern would basically
act as a second sales force to double the exposure of its drugs
to doctors. ICI will hire 145 new salespeople by October one.
    Henderson said the major new products in the company's
pipeline, expected to each bring in sales of over 200 mln dlrs
annually, were Statil, a treatment for diabetic complications,
Zoladex, a treatment for advanced prostate cancer, and Carwin,
a treatment for mild to moderate congestive heart failure.
    Henderson said U.S. Food and Drug Administration approval
to market Statil and Zoladex, both under joint licensing
agreements with Merck and Co Inc <MRK>, is not expected until
about 1989. ICI expects to file for permission to market Carwin
in the U.S. later this year.
    Henderson said the company's 1987 results would top 1986
income of 888 mln dlrs or 5.45 dlrs per ADR on sales of 15
billion dlrs, but he declined to specify by how much.
    Henderson said 1987's results would be boosted by Glidden
Paints, which ICI bought last November for 580 mln dlrs from a
unit of Hanson Industries Inc.
    Henderson also said that ICI has about nine billion dlrs
available for acquisitions. Last year the company made 40
acquisitions, the largest being Glidden. He said that more
acquisitions may be made this year but he ruled out an
acquisition of a pharmaceutical concern as "too expensive."
    Henderson said that in his new role of chairman, effective
April one when he takes over from Sir John Harvey-Jones who
will retire, the biggest challenge ahead lay in continuing the
earnings momentum ICI has established over the past few years
after restructuring and selling off unprofitable businesses.
   


.I 12914
.C
earn
.W
INT'L HYDRON CORP <HYD> 4TH QTR OPER NET.
    WOODBURY, N.Y., March 2 -
    Oper shr profit six cts vs loss 20 cts
    Oper net profit 734,000 vs loss 2,312,000
    Revs 16.8 mln vs 13.9 mln
    Year
    Oper shr profit 30 cts vs profit three cts
    Oper net profit 3,342,0000 vs profit 318,000
    Revs 67.5 mln vs 52.6 mln
    NOTE: Excludes loss of 41,000 dlrs or nil vs gain 7,000
dlrs or nil in qtr and gain 247,000 dlrs or two cts vs gain
88,000 dlrs or one ct in year from net operating loss
carryforwards.


.I 12915
.C
acq
.W
ALBERTSON'S <ABS> ADOPTS STOCKHOLDER RIGHTS PLAN.
    BOISE, Idaho, March 2 - Albertson's Inc said its board has
adopted a stockholder rights plan intended to protect them in
the event of any proposed takeover of the company.
    Under the plan, stockholders will receive a dividend
distribution of one right for each share of common stock held
on March 23.
    The rights are exercisable ten days after a person or group
acquires 20 pct or more of Alberston's common stock or
announces a tender offer for 30 pct or more of the stock.
    Each right will entitle the shareholder to buy one newly
issued share of Alberston's common stock for 150.00 dlrs.


.I 12916
.C
acq
.W
ROSPATCH <RPCH> REJECTS DIAGNOSTIC <DRS> BID.
    GRAND RAPIDS, MICH., March 2 - Rospatch Corp said it
rejected a proposal by Diagnostic Retrieval Systems Inc to
acquire its stock at 22 dlrs a share.
    Rospatch's board believes that the long term interests of
its shareholders will be best served by continuing as an
independent public company at this time, the company said in
response to an unsolicited offer from Diagnostic Retrieval.
    Rospatch said Diagnostic's offer of February 27 is a
variation of a previous offer in January, the nature of which
was not disclosed.
    Rospatch said it advised Diagnostic Retrieval that "it
would be contrary to the best interests of the corporation
to engage in any discussions concerning a business combination
with Diagnostic Retrieval."


.I 12917
.C
earn
.W
SYNTECH INTERENATIONAL INC <SYNE> 4TH QTR NET.
    RENO, Nev., March 2 -
    Shr profit six cts vs loss 4.51 dlrs
    Net profit 815,167 vs loss 12,955,562
    Revs 7,981,022 vs 2,954,488
    Year
    Shr profit 16 cts vs loss 7.22 dlrs
    Net profit 2,446,100 vs loss 19,175,931
    Revs 23.6 mln vs 14.6 mln


.I 12918
.C
acq
.W
INT'L MINERALS <IGL> BUYS ANIMAL PRODUCTS UNIT.
    NORTHBROOK, Ill., March 2 - International Minerals and
Chemical Corp said it completed its acquisition of Johnson and
Johnson Co's Pitman-Moore unit, a producer of animal health
products.
    Terms of the acquisition were not disclosed. International
Minerals and Chemical said annual sales of the unit are about
45 mln dlrs.
    Pitman-Moore makes health products for pets and for farm
and feedstock animals.


.I 12919
.C
acq
.W
JWT <JWT> NOT APPROACHED BY GROUP SEEKING SHARES.
    NEW YORK, March 2 - JWT Group Inc has not been approached
by former Ted Bates Worldwide Chairman Robert Jacoby about the
possibility of a syndicate buying a 35 pct stake in JWT Group
on a friendly basis, a company spokesman said.
    He said JWT would have no comment on an Advertising Age
report that Jacoby is considering heading up a venture capital
syndicate to purchase a 35 pct stake in JWT group.
    Jacoby was not immediately available for comment on the
report. Ted Bates is now owned by <Saatchi and Saatchi>, the
world's largest advertising agency.


.I 12922
.C
earn
.W
COEUR D'ALENE MINES CORP <COUR> 4TH QTR LOSS.
    COEUR D'ALENE, Idaho, March 2 -
    Shr loss 18 cts vs loss one ct
    Net loss 1,343,000 vs loss 49,000
    Revs 6,778,000 vs 1,976,000
    Year
    Shr loss 67 cts vs loss ten cts
    Net loss 4,693,000 vs loss 672,000
    Revs 14.0 mln vs 7,034,000
    Note: 1986 loss included one-time loss of 3,624,000 dlrs on
write-off of certain silver, oil and gas interests.


.I 12924
.C
acq
.W
FOOTE MINERAL <FTE> SELLS CAMBRIDGE PLANT.
    EXTON, Pa., March 2 - Foote Mineral Co said it signed a
letter of intent with Shieldalloy Corp, a wholly-owned
subsidiary of <Metallurg Inc>, for the sale of its Cambridge,
Ohio, business.
    The company said the sale, which will be explained in
greater detail after the definitive agreement has been signed,
is part of Foote's previously-announced plan to sell the entire
company.



.I 12925
.C
wheat;grain;
.W
U.S. WHEAT GROUPS CALL FOR GLOBAL ACTION.
    WASHINGTON, March 2 - All major grain producing countries
must do their part to help reduce global surpluses and the
recent Australian farm policy proposals are flawed, two U.S.
wheat organizations said.
    The recent Australian proposals were a good starting point
for discussions, "but we do not want the Australians to feel
they are alone in developing an agenda for discussions" on world
grain trade, the president of the National Association of Wheat
Growers, NAWG, and the chairman of U.S. Wheat Associates said
in a letter to U.S. Agriculture Secretary Richard Lyng and U.S.
Trade Representative Clayton Yeutter.
    Future discussions on international wheat trade should
include three topics -- a commitment to privatization of
government-run export trading entities, a commitment to public
disclosure of sales and other terms if government entities are
involved, and a recognition that supply reductions by the U.S.
have kept world prices higher than they otherwise would be, the
two organizations said 
    While the Australian proposals are welcome the two
organizations said they are not in total agreement with their
assessments.
    Australia's proposals, which aim to reduce U.S. target
prices and "quarantine" U.S. wheat stocks, would continue to
place the burden of supply adjustment and reform on U.S.
farmers, they said.
      Other countries, including Australia, have benefitted
from the higher world prices that have resulted from past U.S.
acreage and crop reduction programs, the organizations said.
    "We will not continue to hurt ourselves economically -- and
subsidize foreign wheat production -- by unilaterally stocking
grain and changing programs which protect our growers," Jim
Miller, president of NAWG said.
    "We sincerely hope for some type of agreement among the
world's major grain producing nations to reduce stocks and
restore profitability to agriculture," Miller said.


.I 12926
.C
earn
.W
GELCO <GEL> SEES FLAT 1987 PRETAX OPERATING NET.
    EDEN PRAIRIE, MINN., March 2 - Gelco Corp said that,
excluding the effects of a restructuring plan, it expects
pre-tax operating earnings for the year to end July 31, 1987,
to be about the same as those of last year.
    For the year ended July 31, 1986, Gelco reported pre-tax
operating earnings of 14.8 mln dlrs, or 1.08 dlrs a share.
    However, final results will be affected by certain charges
including legal and investment advisors fees, preferred stock
dividends and other costs of restructuring, it said.
    Expenses associated with restructuring are expected to be
offset by "significant" gains from the sale of some of Gelco's
business units, it said.
    The final outcome for the fiscal year will be determined by
the timing and proceeds from the sale, it added.


.I 12928
.C
acq
.W
UTILICORP <UCU> ACQUIRES DOMINION <D> SUBSIDIARY.
    KANSAS CITY, Mo., March 2 - UtiliCorp United Inc said it
has closed the previously announced acquisition of West
Virginia Power from Dominion Resources Inc for about 21 mln
dlrs.


.I 12931
.C
acq
.W
PESCH SEES SHAREHOLDER SUPPORT IN AMI <AMI> BID.
    By Patti Domm, Reuters
    New york, March 2 - Chicago physician LeRoy Pesch said he
has had discussions with several American Medical International
Inc shareholders and sees support for a restructuring of the
company.
    Pesch said he has discussed his sweetened, 1.91 billion dlr
takeover bid for American Medical with several large
shareholders, including the biggest investor, the Bass family
of Texas. However, the Bass family has not indicated support
one way or the other for his offer, he said.
    Pesch, in an interview with Reuters, said based on the
conversations he held with shareholders, he could not guage
whether he had majority support. He said, however, there is
support for his offer.
    Pesch would not identify shareholders with whom he held
discussions other than the Bass family and the Wedge Group Inc,
the only other holder of more than five pct of American Medical
stock.
    Earlier today, Wedge Group, which has a 5.5 pct stake, 
said it held discussions with Pesch, American Medical
management and other American Medical shareholders.
    Wedge, in a filing with the Securities and Exchange
Commission, said it believes a restructuring of American
Medical and its business would be "highly desirable and
appropriate at this time."
    "That's the sort of position that I find a large segment of
shareholders of AMI really share," said Pesch.
    Pesch said he held discussions with Wedge about joining his
takeover effort, in which he is offering 17 dlrs cash, four
dlrs in preferred stock and one dlr in common stock for each
American Medical share. Wedge said it has no plans to join in
an effort to seek control of American Medical, but it would not
rule out a future takeover try.
    Pesch said he did not discuss a joint takeover proposal
with the Bass family.
    Some analysts saw the Wedge statement as a boost to Pesch's
takeover effort and a further sign that there could be some
shareholder dissatisfaction following American Medical's
previous rejection of a 20 dlr per share all cash offer from
Pesch.
    American Medical is expected to resist Pesch's latest bid.
Larry Feinberg, an analyst with Dean Witter Reynolds Inc said a
management-led leveraged buyout cannot be ruled out.
    An American Medical spokesman said the company will comment
on the new Pesch offer by March 10.
    Analysts continue to view the Bass family as a factor in
the outcome of the bid for control of American Medical.
    The Bass family holds an 11. 6 pct stake in American
Medical, and the company has previously said the investors
support management's internal plan to improve the company's
performance. The Bass family would not comment on American
Medical or Pesch.
    Pesch, who led the leveraged buyout of Republic Health Corp
last year, continues to face a credibilty problem on Wall
Street because of the long time it took to finish the Republic
acquisition.
    Republic also has substantial debt, and has left wall
street questioning whether financing can be completed for the
much larger American Medical takeover proposal.
    Pesch's first offer for American Medical was made without
an investment banking firm, another cause for concern to Wall
Street. However, Pesch entered his second offer with
representation from Donaldson, Lufkin, and Jenrette Securities
and Security Pacific Merchant Banking Group.
    "I don't have any doubt that the current transaction can be
worked out and completed, provided we get to the point where
Ami management will sit down and talk in a friendly
environment," Pesch said.
    Pesch would not elaborate on what type of financing
arrangements are being made. He did say if he succeeds in
acquiring American Medical he plans to keep much of American
Medical management in place.
    He said he plans to combine the company with Republic to
form an efficient network of hospitals.
    Analysts said they do not believe a much higher offer could
be made for American Medical.
    Byron Nimocks of E.F. Hutton Group said improved second
fiscal quarter earnings could make American Medical stock worth
about 20 dlrs per share.
    Nimocks estimates American Medical earnings for the second
quarter ended February 28 could be 35 cts, compared to a 95 ct
loss last year.
    Nimocks said Pesch's revised offer is not worth much more
than the 20 dlrs cash offered previously.
    But Feinberg said there is a better chance a transaction
could be completed because of the revised structure of the
offer. "I think it's much more doable," he said.
    Analysts have said American Medical has begun a turnaround
by replacing some members of management and reducing costs.


.I 12938
.C
coffee
.W
SENIOR DELEGATES PESSIMISTIC ON ICO TALKS.
    LONDON, March 2 - Efforts to break an impasse between
coffee exporting and importing countries over regulating the
world coffee market in the face of falling prices appear to
have failed, senior delegates said after a contact group
meeting. The full ICO council is due to meet this evening.
    President of the Brazilian Coffee Institute (IBC) Jorio
Dauster told Reuters after the contact group meeting there had
been no agreement on quotas as consumers had tried to dictate
market shares rather than negotiate them.
    Dauster said there are no plans yet to renew negotiations
at a later date.


.I 12940
.C
earn
.W
GLAMIS GOLD LTD <GLGVF> SIX MTHS DEC 31 NET.
    VANCOUVER, British Columbia, March 2 -
    Shr 16 cts vs 22 cts
    Net 1,226,597 vs 1,327,016
    Revs 6,598,580 vs 5,921,828


.I 12941
.C
acq
.W
U.S. APPROVES BUYOUT OF COASTAL BANCORP <CSBK>.
    PORTLAND, Maine, March 2 - Coastal Bancorp said the U.S.
Federal Reserve Board approved the acquisition of Coastal by
Suffield Financial Corp <SSBK>.
    The acquisition still requires approval from the Banking
Department in Maine, the company noted.


.I 12942
.C
earn
.W
LITTLE PRINCE PRODUCTIONS LTD<LTLP>1ST QTR LOSS.
    NEW YORK, March 2 - Qtr ended Dec 31
    Shr profit nil vs loss nil
    Net profit 858 vs loss 3,957
    Revs 7,372 vs 1,500


.I 12945
.C
acq
.W
AMCA <AIL> TO SELL SOME DOMINION BRIDGE ASSETS.
    TORONTO, March 2 - AMCA International Ltd said it finalized
agreement to sell certain assets and inventories of its
Dominion Bridge steel service center operations to <Federal
Industries Ltd>'s Russelsteel Inc unit. Terms were undisclosed.
    It said the sale involved assets and operations of the
general line of steel service centers in Toronto and Edmonton,
Alberta and steel from inventories of closed AMCA branches.
    The company said the sale was part of a previously
announced restructuring program to allow it to focus on certain
core businesses and generate cash to cut debt.


.I 12947
.C
acq
.W
SCOTT'S HOSPITALITY ACQUIRES CAPITAL FOOD.
    TORONTO, March 2 - <Scott's Hospitality Inc> said it
acquired Capital Food Services Ltd, Ottawa's largest catering
and food service company, for undisclosed terms.
    Scott's said it would operate Capital Food as a separate
unit under Capital's current name and management.


.I 12950
.C
acq
.W
UNION NATIONAL <UNBC> SIGNS DEFINITIVE PACT.
    MASONTOWN, PA., March 2 - Union National Corp said it
signed a definitive agreement under which its First National
Bank and Trust Co of Washington unit will merge with <Second
National Bank of Masontown>.
    Under a previously announced merger agreement, each share
of Second National's common stock will be converted into 25
shares of Union National common.


.I 12951
.C
acq
.W
ANALYSTS SEE NO OTHER BIDDER FOR PUROLATOR<PCC>.
    New York, March 2 - Several analysts said they do not
believe another suitor will top the 265 mln dlr bid for
Purolator Courier Corp by E.F. Hutton LBO Inc and a management
group from Purolator's courier division.
    There had been speculation another offer might be
forthcoming, but analysts mostly believe the 35 dlrs per share
price being paid by Hutton and the managers' PC Acquisition Inc
is fully valued.
    Analysts and some Wall Street sources said they doubted
another bidder would emerge since Purolator had been for sale
for sometime before a deal was struck with Hutton Friday.
    Purolator's stock slipped 3/8 today to close at 34-3/4. It
had been trading slightly higher than the 35 dlr offer on
Friday. At least one analyst Friday speculated the company
might fetch 38 to 42 dlrs per share.
    analysts and wall street sources doubted a competitive
offer would emerge since the company has been for sale for
sometime before the deal with Hutton was struck Friday.
    Hutton had been in talks with Purolator's adviser, Dillon,
Read and Co since late December, a Hutton spokesman said.
    Hutton is offering 35 dlrs cash per share for 83 pct of the
shares. If all shares are tendered, shareholders would receive
29 dlrs cash, six dlrs in debentures, and warrants for stock in
a subsidiary of PC Acquisition containing the Purolator U.S.
courier operation. Hutton values the warrants at two to three
dlrs per share.
    Wall Street sources also said today that a rival bidder
might be discouraged by a breakup fee Purolator would have to
pay if it ends its agreement with Hutton. The sources would not
reveal the amount of the fee, which will be noted in documents
on the transaction to be made public later this week.


.I 12956
.C
earn
.W
WHITEHALL CORP <WHT> 4TH QTR NET.
    DALLAS, March 2 -
    Shr 15 cts vs 55 cts
    Net 557,000 vs 2,020,000
    Revs 8,872,000 vs 13,908,000
    Year
    Shr 60 cts vs 2.52 dlrs
    Net 2,198,000 vs 9,313,000
    Revs 36.9 mln vs 55.7 mln


.I 12957
.C
earn
.W
SERVICE CORP INTERNATIONAL <SRV> 3RD QTR NET.
    HOUSTON, March 2 - Qtr ended Jan 31
    Shr 33 cts vs 29 cts
    Net 14.8 mln vs 11 mln
    Revs 108.6 mln vs 70.0 mln
    Avg shrs 45.2 mln vs 37.6 mln
    Nine mths
    Shr 88 cts vs 76 cts
    Net 36.7 mln vs 28.7 mln
    Revs 260.4 mln vs 193.0 mln
    Avg shrs 41.9 mln vs 37.8 mln
    Note: Net for nine mths includes gains from dispositions of
1,783,000 dlrs or four cts a share vs 900,000 dlrs or two cts a
share.
    Avg shrs and shr data restated to reflect three-for-two
stock split in January.


.I 12959
.C
earn
.W
PEOPLES BANCORPORATION <PEOP> QUARTERLY DIVIDEND.
    SEATTLE, March 2 -
    Qtly div 25 cts vs 25 cts
    Pay April 24
    Record March 31


.I 12961
.C
earn
.W
CPL REIT <CNTRS> 4TH QTR NET.
    DAVENPORT, Iowa, March 2 -
    Shr 24 cts
    Net 412,737
    Revs 605,321
    Year
    Shr 93 cts
    Net 1,577,892
    Revs 2,345,261
    NOTE: Full name CPL Real Estate Investment Trust.
    Company was formed Dec 30, 1985.


.I 12963
.C
earn
.W
REPUBLIC AUTOMOTIVE PARTS <RAUT> 4TH QTR LOSS.
    BRENTWOOD, Tenn., March 2 -
    Shr loss 85 cts vs loss 88 cts
    Net loss 2,410,000 vs loss 2,466,0000
    Revs 24.0 mln vs 23.9 mln
    Year
    Shr loss 1.18 dlrs vs loss 81 cts
    Net loss 3,338,000 vs loss 2,275,000
    Revs 101.4 mln vs 112.3 mln


.I 12964
.C
earn
.W
REALMERICA CO <RACO> YEAR NOV 30 NET.
    LEXINGTON, Ky., March 2 - 
    Shr profit four cts vs loss 16 cts
    Net profit 155,383 vs loss 577,336
    Note: Net includes tax credit of 51,226 dlrs or one ct per
share.


.I 12966
.C
earn
.W
S-K-I LTD <SKII> 2ND QTR JAN 25 NET.
    KILLINGTON, Vt., March 2 -
    Shr 81 cts vs 57 cts
    Net 3,660,273 vs 2,437,914
    Revs 28.5 mln vs 23.1 mln
    Six mths
    Shr 29 cts vs 12 cts
    Net 1,325,755 vs 483,559
    Revs 31.7 mln vs 26.4 mln


.I 12970
.C
acq
.W
FERRO CORP <FOE> SETS JOINT VENTURE.
    LOS ANGELES, March 2 - Ferro Corp said it has formed a
joint venture with Paris-based Alsthom Inudstrial Group to
export U.S. epxertise in specialty composite materials to the
European market.
    Ferro said although the airframe and aerospace industries
are the prime users of composite materials today, it plans to
develop applications for the ground transportation and
industrial markets in the near future.
    Ferro also announced it has agreed to purchase CompositAir,
a developer of composit materials applications, for an
undisclosed sum.


.I 12974
.C
crude
.W
NYMEX RULE CHANGE SEEN BOOSTING ENERGY TRADE.
    NEW YORK, March 2 - The New York Mercantile Exchange said
it will introduce exchanges for physicals (EFPS) to its energy
futures markets April one.
    An exchange spokeswoman said the change will allow oil
traders that do not hold a futures position to initiate, after
the exchange closes, a transaction that can subsequently be
hedged in the futures market.
    EFPs, already in effect for platinum futures on NYMEX, are
expected to increase the open interest and liquidity in U.S.
energy futures, according to traders and analysts.
    The Commodity Futures Trading Commission approved the rule
change in February, according to a CFTC spokeswoman.


.I 12976
.C
copper
.W
U.S. REFINERY COPPER STOCKS FALL IN JANUARY.
    NEW YORK, March 2 - Refined copper stocks held by U.S.
refineries fell to 109,200 short tons at the end of January
from 145,400 short tons at the end of December, the American
Bureau of Metal Statistics reported.
    Commodity Exchange (Comex) copper stocks climbed to 103,000
tons in January from 93,300 tons in December. Combined refinery
and Comex stocks eased to 212,200 tons in January
from 238,700 tons in December.
    U.S. refined production declined to 117,600 tons in January
from 137,400 tons in December. Crude output increased to 98,600
tons in January from 93,300 tons (revised lower) in December.
    Preliminary figures showed U.S. refined deliveries rose to
151,800 tons in January from 124,800 tons in December.


.I 12980
.C
acq
.W
CCL UNIT ACQUIRES NESTLE CANADA CAN OPERATIONS.
    TORONTO, March 2 - <CCL Industries Inc>'s Continental Can
Canada Inc unit said it acquired the Wallaceburg, Ontario,
metal can making operations of Nestle Enterprises Ltd, wholly
owned by <Nestle SA>, of Switzerland. Terms were undisclosed.
    Continental Can said it would supply Nestle's equivalent
can requirements under a long-term agreement.
    Nestle said it decided to stop manufacturing cans "in order
to be in a better position to take full advantage of the
changes underway or on the horizon in food packaging
technology."


.I 12981
.C
hog;livestock;
.W
AMERICAN PORK CONGRESS KICKS OFF TOMORROW.
    CHICAGO, March 2 - The American Pork Congress kicks off
tomorrow, March 3, in Indianapolis with 160 of the nations pork
producers from 44 member states determining industry positions
on a number of issues, according to the National Pork Producers
Council, NPPC.
    Delegates to the three day Congress will be considering 26
resolutions concerning various issues, including the future
direction of farm policy and the tax law as it applies to the
agriculture sector. The delegates will also debate whether to
endorse concepts of a national PRV (pseudorabies virus) control
and eradication program, the NPPC said.
    A large trade show, in conjunction with the congress, will
feature the latest in technology in all areas of the industry,
the NPPC added.


.I 12983
.C
copper
.W
COPPER STOCKS OUTSIDE U.S. INCREASE IN DECEMBER.
    NEW YORK, March 2 - Refined copper stocks held by
refineries outside the U.S. increased to a preliminary 277,500
short tons at the end of December from a preliminary 270,000
short tons (revised higher) at the end of November, the
American Bureau of Metal Statistics said.
    London Metal Exchange stocks fell to 193,100 tons in
December from 194,400 tons in November. Combined refinery and
LME stocks rose to a preliminary 470,600 tons from 464,400 tons
(revised higher). January LME stocks were 193,400 tons.
    Preliminary figures showed refined production outside U.S.
lower at 377,300 tons in December versus 384,000 tons in
November. Crude output decreased to 421,500 tons from 427,000
tons (revised higher). Refined copper deliveries decreased to
359,800 tons from 375,400 tons (revised lower).


.I 12994
.C
earn
.W
MFS MANAGED MUNCIPAL BOND TRUST SETS PAYOUT.
    BOSTON, Mass., March 2 - <MFS Managed Muncipal Trust Bond>
said it declared a monthly payout income distribution of 5.7
cts a share compared with 5.6 cts for the previous month.
    It said the distribution is payable March 20 to
shareholders of record March two.


.I 12999
.C
copper
.W
U.S. BRASS MILL COPPER STOCKS LOWER IN JANUARY.
    NEW YORK, March 2 - U.S. brass mill copper stocks fell to
185,400 short tons (copper content) at the end of January from
191,200 short tons at the end of December, according to the
American Bureau of Metal Statistics.
    Consumption by brass mills increased to 60,700 short tons
in January from 48,900 short tons in December.
    Mills consumed 29,600 tons of refinery shapes in January
versus 24,000 tons in December. Scrap consumption increased to
31,100 tons in January from 24,900 tons in December.
    Total brass mill shipments increased to 69,600 tons in
January from 54,400 tons in December, while receipts rose to
63,800 tons from 47,100 tons.


.I 13000
.C
earn
.W
MFS MUNICIPAL INCOME TRUST <MFM> SETS PAYOUT.
    BOSTON, March 2 - MFS Municipal Income Trust said it
declared a monthly income distribution of 5.7 cts a share
compared with 5.5 cts a share paid in the previous month.
    It said the distribution is payable March 27 to
shareholders of record March 13.


.I 13001
.C
earn
.W
PITTWAY CORP <PRY> 4TH QTR NET.
    NORTHBROOK, Ill., March 2 -
    Shr 1.35 dlrs vs two dlrs
    Net 6,195,000 vs 9,202,000
    Sales 157.5 mln vs 151.6 mln
    Year
    Shr 6.02 dlrs vs 6.78 dlrs
    Net 27,608,000 vs 31,117,000
    Sales 585.7 mln vs 541.3 mln


.I 13003
.C
acq
.W
ARMTEK <ARM> TO SELL INDUSTRIAL TIRE UNIT.
    NEW HAVEN, CONN., March 2 - Armtek Corp, previously the
Armstrong Rubber Co, said it agreed to sell its industrial tire
and assembly division to a Dyneer Corp <DYR> for an undisclosed
sum.
    It said the agreement covers the division's tire production
facility in Clinton, Tenn., and its plants serving original
equipment and replacement markets. Armstrong Tire Co, an Armtek
unit, will continue to sell replacement industrial tires, the
company said.
    Final closing is expected in the third fiscal quarter
ending June 30.



.I 13011
.C
earn
.W
PETROLITE CORP <PLIT> SETS PAYOUT.
    ST. LOUIS, March 2 -
    Qtly dividend 28 cts vs 28 cts
    Pay April 24
    Record April 10


.I 13012
.C
heat;gas;propane;
.W
NYMEX TO SUBMIT PROPANE PROPOSAL TO CFTC.
    NEW YORK, March 2 -The New York Mercantile Exchange expects
to submit a propane futures contract for federal regulatory
approval within a few days, according to an exchange
spokeswoman.
    As previously announced, the Board of Governors of the
exchange approved the contract last month. The exchange will
now submit the contract to the Commodity Futures Trading
Commission, according to the spokeswoman.
    Contract specifications will resemble those of heating oil
and gasoline futures. The contract size will be 1,000 barrels,
or 42,000 U.S. gallons.
    The minimum price fluctuation for the propane futures
contract will be  0.01 cent per gallon, or 4.20 dlrs a barrel,
according to the exchange.
    The maximum daily price limit will be two cts a gallon on
all contracts except spot. Trading will terminate on the last
business day of the month preceding the delivery month.
    The exchange said delivery will be F.O.B from the seller's
pipeline, storage, or fractionation facility in Mont Belvieu,
Texas, which has a direct pipeline access to the Texas Eastern
Transmission Pipeline (TET) in Mont Beliview.
    Delivery method will be by in-line or in-well transfer,
inter-facility transfer or pumpover, or book transfer and
cannot be done earlier than the tenth calendar day of the
delivery month, according to the exchange. Deliveries must be
completed no later than two business days prior to the end of
the delivery month.
    Buyers taking delivery of the propane must pay the seller
by certified check and the deadline for payment is 1200 EST
(noon) of the second business day following receipt of the
propane.


.I 13013
.C
money-supply
.W
******australian annual broad money supply growth 10.3 pct in January.
Blah blah blah.

.I 13016
.C
oilseed;veg-oil;soybean;soy-oil;
.W
YEUTTER BLASTS PROPOSED EC OILS AND FATS TAX.
    WASHINGTON, March 3 - U.S. trade representative Clayton
Yeutter today said that if the European Community's Council of
Ministers approves a tax on vegetable oils and fats, another
major transatlantic trade row will erupt over agriculture.
    In a statement issued by the trade representative's office
following a speech to the American Soybean Association's board
of directors, Yeutter said the proposed tax would have a severe
impact on American soybean farmers, who export some 2.4 billion
dlrs in soybeans and products annually to the EC.
    "This is an unacceptable situation for us and its
(vegetable oils tax) enactment would leave us no choice but to
vigorously protect our trade rights and defend our access to
the European market," Yeutter said.
    Yeutter said the proposed vegetable oils tax would violate
EC obligations under the GATT.
    He said the effect of the tax would be to double the price
of soyoil produced from imported soybeans, making margarine
made from soyoil more expensive than tallow-based margarine,
and closer in price to expensive European butter.
    "I am astonished that the EC commission would propose such
a provocative measure so soon after we successfully resolved
the agricultural dispute over the enlargement of the EC to
include Spain and Portugal," Yeutter said.
    "It serves no purpose to embark on another confrontational
course before the recent wounds have healed and as we are
beginning to make progress on the Uruaguay round (of global
trade talks)," he said.


.I 13017
.C
heat
.W
EXXON <XON> CUTS HEATING OIL BARGE PRICE.
    NEW YORK, March 2 - Oil traders in New York said Exxon
Corp's Exxon U.S.A. unit reduced the price it charges contract
barge customers for heating oil in New York harbor 0.75 cent a
gallon, effective today.
    They said the reduction brings Exxon's contract barge price
to 43.25 cts. The price decrease follows sharp declines in
heating oil prices on spot and futures markets, traders said.


.I 13018
.C
crude
.W
GREECE SAYS IT HAS RIGHT ON AEGEAN OIL DRILLING.
    ATHENS, March 2 - Greece, responding to a warning by Turkey
against conducting oil activities in the Aegean Sea, said today
it had the right to decide where and how to do research or
drilling work in the area.
    A government spokesman said the Greek position was made
clear to Turkey's ambassador Nazmi Akiman when he met Greek
Foreign Affairs Undersecretary Yannis Kapsis last week.
    Acting Turkish Prime Minister Kaya Erdem said earlier today
Greek activities in the northern Aegean contravened the 1976
Berne Agreement which set the framework for talks on the Aegean
continental shelf disputed between Ankara and Athens.
    The Greek statement today said, "Greece is not prepared to
give up even a trace of its sovereignty rights to the seabed.
It has been stressed to...Mr Akiman that the decision where or
how to drill belongs exclusively to the Greek government."
    "The Greek government has repeatedly let the Turkish side
know that it considers the 1976 Berne protocol as inactive
through the fault of Turkey," it said.
    The Greek statement said Athens was ready to put the
continental shelf issue before international courts.


.I 13019
.C
acq
.W
LEUCADIA <LUK> HAS 7.2 PCT OF MINSTAR <MNST>.
    WASHINGTON, March 2 - Leucadia National Corp said two of
its subsidiaries have acquired a 7.2 pct stake in Minstar Inc,
a corporation controlled by corporate raider Irwin Jacobs and
used by him in his forays to acquire stock in companies.
    In a filing with the Securities and Exchange Commission,
Leucadia said its LNC Investments Inc, a Newark, Del.,
investment firm, and Charter National Life Insurance Co, a St.
Louis joint stock life insurance company, bought their combined
1,261,000 Minstar common shares for investment purposes only.
    The Leucadia subsidiaries had held an 11.0 pct stake in
Minstar, but cut to 1.8 pct, or 313,200 shares, last July.
    Since July, Leucadia said its companies have bought 947,800
Minstar common shares for a total of 24.7 mln dlrs.
    Leucadia said it bought the Minstar stake to obtain an
equity position in the company and has no intention of seeking
control of it.
    Nearly half of Leucadia's common stock is owned by TLC
Associates, a Salt Lake City, Utah, general partnership, whose
partners include the chairman and president of Leucadia and
other investors.


.I 13020
.C
earn
.W
BASIX CORP <BAS> 4TH QTR LOSS.
    NEW YORK, March 2 - 
    Oper shr loss eight cts vs profit 20 cts
    Oper net loss 768,000 vs profit 1,962,000
    Revs 49.0 mln vs 43.6 mln
    12 mths
    Oper shr loss 1.41 dlrs vs profit 96 cts
    Oper net loss 13.6 mln vs profit 9,305,000
    Revs 175.3 mln vs 140.7 mln
    Note: Oper excludes loss from discontinued operations of
4,676,000 dlrs or 48 cts a share for year-ago qtr and 7,571,000
dlrs or 78 cts a share for year-ago 12 mths.
    Oper includes charge of 1.1 mln dlrs for cumulative effect
of repeal of the investment tax credit for qtr and writedown of
21.6 mln dlrs on gas and oil facilities for 12 mths.
    Year-ago shr data restated to reflect two pct stock
dividend of December 1986.


.I 13022
.C
money-supply
.W
AUSTRALIAN JANUARY ANNUAL BROAD MONEY UP 10.3 PCT.
    Sydney, March 3 - Australia's broad money supply rose 10.3
pct in the year ended January, up from a revised 9.6 pct in
December, the Reserve Bank said.
    This compares with the previous January's 13.9 pct.
    In January broad money growth slowed to 0.7 pct from
December's 1.5 pct and compared with nil growth in January
1986.
    Within the broad money total, non-bank financial
intermediaries rose by 0.2 pct from a revised decline of 0.2 
in December and a previous January's 0.8 pct increase.
    In the January year, NBFI's borrowings rose by 9.5 pct from
a revised 10.1 in December and compared with a previous
January's 12.8.
    At the end of January, broad money stood at 175,866 mln
dlrs dlrs from December's 174,668 mln dlrs and a January 1986
level of 159,453 mln.
    In the same period, borrowings from the private sector by
the NBFIs rose to 70,389 mln dlrs from December's 70,237 mln
and the previous January's 64,299 mln.


.I 13023
.C
acq
.W
MICROBIO <MRC> PLANS ACQUISITION, FINANCING.
    BOUNTIFUL, Utah, March 2 - Microbiological Research Corp
said it entered into a letter of intent for a proposed business
combination with privately owned <DataGene Scientific
Laboratories Inc>, and <Milex Corp> a newly formed company,
through a stock swap.
    It also said it received 100,000 dlrs from the sale of a
convertible note to Ventana Growth Fund as part of an overall
1,100,000 equity financing plan with Ventana. Under that plan,
a minimum of 400,000 dlrs and a maximum of one mln dlrs of
additional new capital is to be provided to fund the combined
operations of the three companies.
    Microbiological also said that if the maximum additional
capital is raised, it will own about 49 pct of 4,550,00 shares
of common outstanding in the new combined company, DataGene
holders will own 29 pct, and Ventana and others will own 13
pct.
    It said the remaining nine pct will be held by Milex
shareholder Norman Monson, who will become chief executive
officer of the combined companies.


.I 13025
.C
coffee
.W
ICO COUNCIL ENDS IN FAILURE TO AGREE QUOTAS.
    LONDON, March 2 - A special meeting of the International
Coffee Organization (ICO) council failed to agree on how to set
coffee export quotas, ICO delegates said.
    Producers and consumers could not find common ground on the
issue of quota distribution in eight days of arduous, often
heated talks, delegates said.
    Export quotas -- the major device of the International
Coffee Agreement to stabilise prices -- were suspended a year
ago after coffee prices soared in reaction to a drought in
Brazil which cut its output by two thirds.
    Delegates and industry representatives predicted coffee
prices could plummet more than 100 stg a tonne to new four year
lows tomorrow in response to the results of the meeting.


.I 13026
.C
gnp;trade;
.W
FRANCE HAS LITTLE ROOM FOR MANOEUVRE, OECD SAYS.
    PARIS, March 3 - French industry is failing to produce the
goods its markets need and its loss of competitiveness has left
the government little room for manoeuvre to reflate the
economy, the Organisation for Economic Cooperation and
Development said.
    With gross domestic product likely to grow only 2.1 pct
this year, the same rate as last year, unemployment could climb
to 11.5 pct of the workforce by mid-1988, from its present 10.9
pct, it said in an annual review of the French economy.
    The report said the French economy was "increasingly
ill-adapted to demand" selling goods at "uncompetitive relative
prices on both domestic and export markets."
    "France's poor export performance reflects a geographical
bias in favour of markets less dynamic than the average...
And...A substantial loss of market share...In the past 18
months," it said.
    Pointing to a likely widening of the French trade deficit
to around 2.9 billion dlrs this year from 2.4 billion in 1986,
it warned that a further depreciation of the dollar against the
franc could lead to "a (renewed) loss of competitiveness
relative not only to the United States but also to the newly
industrialised countries."
    This could result in further major losses of market share,
particularly in the non-OECD area, which accounts for almost a
quarter of French exports, it said.
    Until the competitive ability of industry improved, the
authorities would have "little scope for macroeconomic
manoeuvre, even if the unemployment situation or the need to
encourage a pickup in investment could require demand to grow
more briskly," it added.
    But rising unemployment could help to hold down wage
demands, contributing to a slowdown in inflation to around a
two pct annual rate this year and early next, the OECD said.
    Written mainly in December last year, the report took no
account of a rise in oil prices early in 1987, and a 0.9 pct
surge in January consumer prices, caused partly by the
government's deregulation of service sector tariffs.
    "We took a bet that the freeing of prices would not provoke
runaway rises, and it is not absolutely certain that bet has
been lost," one OECD official commented.
    OECD officials said the January data and a rise in oil
prices above the 15 dlrs a barrel average assumed in the
report, indicated an upward revision in the inflation forecast
to around 2.5 or three pct.
    The government last week revised its forecast up to between
2.4 and 2.5 pct from two pct, against last year's 2.1 pct.
    But the OECD backed the government's view that the
underlying trend for inflation remained downwards this year,
with a slowdown in domestic costs taking over from last year's
fall in oil and commodity prices as the chief cause of
disinflation.
    With French unit productivity costs now among the lowest in
the OECD area, the inflation differential between France and
its main trading rival, West Germany, could fall to just one
pct this year, it said.
    On the other hand, the report noted, consumer prices for
industrial goods and private services have been rising steeply
as companies built up their profits.
    "For the disinflationary process to continue , and price
competitiveness to become lastingly compatible with exchange
rate stability, it is essential that wage restraint continue,"
it said.


.I 13027
.C
acq
.W
PAINEWEBBER<PWJ> UNIT UPS SHAER SHOE <SHS> STAKE.
    WASHINGTON, March 2 - Mitchell Hutchins Asset Management
Inc, a New York investment firm and subsidiary of PaineWebber
Group Inc, said it raised its voting stake in Shaer Shoe Corp
to 76,000 shares, or 7.5 pct, from 52,100 shares, or 5.1 pct.
    In a filing with the Securities and Exchange Commission,
Mitchell Hutchins said it bought 11,900 shares between Jan 8
and Feb 24 at prices ranging from 12.125 to 12.75 dlrs a share
and obtained voting control over another 12,000 shares.
    The firm has said it bought the stake as an investment on
behalf of its clients, but said it has had discussions with
Shaer management. It did not disclose the topic of the talks.


.I 13029
.C
earn
.W
TELECREDIT INC <TCRD> 3RD QTR JAN 31 NET.
    LOS ANGELES, March 2 -
    Shr 32 cts vs 22 cts
    Net 3,454,000 vs 2,224,000
    Revs 33.2 mln vs 28.1 mln
    Nine mths
    Shr 64 cts vs 38 cts
    Net 6,935,000 vs 3,877,000
    Revs 86.8 mln vs 70.9 mln


.I 13031
.C
earn
.W
LASER PRECISION CORP <LASR> 4TH QTR NET.
    IRVINE, Calif., March 2 -
    Shr profit 14 cts vs profit two cts
    Net profit 452,723 vs profit 50,581
    Revs 5,065,543 vs 2,898,363
    Year
    Shr profit 45 cts vs loss 15 cts
    Net profit 1,276,472 vs loss 340,081
    Revs 16.0 mln vs 9,304,466


.I 13032
.C
acq
.W
REXNORD <REX> TO REDEEM RIGHTS.
    BROOKFIELD, Wis., March 2 - Rexnord Inc said it will redeem
all of its preferred stock purchase rights for 10 cts a right
effective today.
    Rexnord said the rights will be redeemed because it is
expected its shares will be tendered under a January 30
takeover offer from Banner Acquisition Corp. The rights trade
in tandem with Rexnord's common stock.


.I 13033
.C
acq
.W
CANTREX UNIT TO MERGE WITH ONTARIO GROUP.
    MONTREAL, March 2 - (Groupe Cantrex Inc) said it plans to
merge a new wholly-owned subsidiary a merger agreement with
(CAP Appliance Purchasers Inc), of Woodstock, Ontario, a group
of about 400 appliance and electronics retailers.
    It said CAP shareholders will receive 140,700 first
preferred Groupe Cantrex shares entitling the holders to
receive 6.05 dlrs per share or the equivilant in class A
subordinate voting Cantrex shares.
    The merger is effective April one and is subject to
shareholder approval.         


.I 13034
.C
acq
.W
INVESTMENT FIRM BOOSTS LDBRINKMAN <DBC> STAKE.
    WASHINGTON, March 2 - Two affiliated investment firms and
the investment funds they control said they raised their
combined stake in LDBrinkman Corp to 653,600 shares, or 10.9
pct of the total outstanding from 585,600 shares, or 9.7 pct.
    In a filing with the Securities and Exchange Commission,
Fidelity International Ltd, a Bermuda-based firm, said its
funds bought 68,000 LDBrinkman common shares between Jan 5 and
Feb 19 at prices ranging from 5.30 to 5.445 dlrs a share.
    Funds controlled by FMR Corp, a Boston-based investment
firm affiliated with Fidelity, hold 251,100 shares, bringing
the combined total to 653,600 shares, Fidelity said.


.I 13035
.C
earn
.W
ITT'S <ITT> HARTFORD UNIT POSTS 4TH QTR GAIN.
    HARTFORD, Conn., March 2 - Hartford Insurance Group, a unit
of New York-based ITT Corp, said higher worldwide premiums help
boost net income for the 1986 fourth quarter to 88.6 mln dlrs,
from net income of 36.7 mln dlrs for the 1985 quarter.
   For the full year, Hartford said it earned 329 mln dlrs, up
from 151.4 mln dlrs in 1985.
    Hartford said results for the year were aided by a gain of
46.5 mln dlrs on the sale of its remaining 52 pct stake in
Abbey Life Group PLC. For 1985, the company posted a gain of
14.3 mln dlrs on the sale of 48 pct of Abbey Life.
    Hartford said total property-casualty and life-health
written premiums rose 25 pct in 1986, to eight billion dlrs,
from 6.4 billion dlrs in 1985.


.I 13036
.C
acq
.W
SEC PROBES 1986 TRE <TRE> TAKEOVER ATTEMPT.
    WASHINGTON, March 2 - The federal Securities and Exchange
Commission (SEC) is looking for possible securities laws
violations in connection with an unsuccessful 1986 bid by
Hollywood producer Burt Sugarman to take over TRE Corp,
attorneys contacted by SEC investigators said.
    During the takeeover attempt, a unit of Sugarman's Giant
Group Ltd at one point held a 9.9 pct stake in TRE.
    It had help in that effort from Jefferies Group Inc, a Los
Angeles investment banking firm which sold it an option on a
portion of the shares Sugarman eventually acquired.
    In addition, a company controlled by Sugarman raised 35 mln
dlrs in a debt offering underwritten by Drexel Burnham Lambert
Inc with help from Jefferies, and used a portion of the
proceeds to buy TRE stock.
    Finally, Reliance Group Holdings Inc acquired nearly six
pct of TRE, according to an SEEC filing.
    The attorneys, who asked not to be identified, said the SEC
was investigating whether Sugarman and other firms with TRE
holdings were working together without disclosing their
cooperation, as would be required by the federal securities
laws.
    One attorney said SEC probers also were examining whether
Sugarman and Drexel had made adequate disclosures of its
intended usage of the proceeds in the prospectus for the 35 mln
dlr bond offering.
    A TRE spokesman confirmed that TRE, since December a unit
of Aluminum Co of America, had been contacted by SEC
investigators and was cooperating with the probe.
    The spokesman added that TRE Chairman Leopold Wyler had
been interviewed by the SEC probers.
    A Jefferies spokesman said the SEC had asked for
information a few months ago as part of an informal probe.
    The spokesman said Jefferies had cooperated with the agency
and had heard nothing more since that time.
    "To the best of our knowledge, Jefferies is not the target
of a formal SEC investigation" in connection with the TRE bid,
he said.
    A Drexel spokesman acknowledged that his firm had
underwritten the debt offering for Sugarman but added:
    "We had nothing to do with TRE."
    As a matter of policy, the SEC routinely declines to
comment on its enforcement activities.


.I 13038
.C
oilseed;grain;corn;soybean;oat;
.W
CBT FEBRUARY VOLUME DOWN 14 PCT FROM YEAR AGO.
    CHICAGO, March 2 - February volume at the Chicago Board of
Trade, CBT, declined 14 pct from the year-ago month to
8,191,266 contracts, the exchange said.
    A relatively steady interest rate climate reduced volume in
the most active contract, Treasury bond futures, by 17.5 pct
from a year ago to 4,307,645 contracts.
    However, trading in most agricultural futures contracts
increased last month, led by oats and corn futures.
    Oats volume tripled to 27,662 contracts, and corn volume
increased 35 pct to 580,204 contracts. Wheat and soybean oil
futures activity also rose from a year ago, while soybean and
soybean oil volume slipped, the exchange said.
    Major Market Index futures increased activity 37 pct during
the month with 194,697 contracts changing hands.


.I 13039
.C
wheat;grain;
.W
USSR WHEAT BONUS RUMORS PERSIST DESPITE DENIALS.
    WASHINGTON, March 2 - Grain trade representatives continued
to speculate that the Reagan administration will offer
subsidized wheat to the Soviet Union, while U.S. Agriculture
Department officials said there was no substance to the
reports.
    "It's pure fiction," said one senior official at USDA's
Foreign Agricultural Service, referring to the rumor that the
administration would make an export enhancement offer to Moscow
in the next two to three weeks.
    An aide to Agriculture Secretary Richard Lyng who asked not
to be identified said there was nothing to substantiate the
speculation, which he said was started by "somebody fanning the
(wheat) market." Wheat futures strengthened today, partly on the
basis of the speculation.
    One lobbyist with close connections to the Reagan
administration said a Soviet trade team told private grain
trade officials in New York last week that Moscow would buy as
much as four mln tonnes of U.S. wheat, much of it before
mid-year, if it was "competitively priced."
    Alexander Ivlev, an official with Amtorg, a Soviet trading
organization, told Reuters he had no information to
substantiate the rumors of an imminent wheat subsidy offer, but
said that Moscow "would consider" buying U.S. wheat if it was
competitively priced.
    "We don't care if it is EEP, what we (the Soviets) are
looking for is competitive prices," Ivlev said. "If they (the
administration) are interested in selling it (wheat), they
should find ways to do it."


.I 13040
.C
ship
.W
CANADIAN SEAFARERS THREATEN STRIKE.
    MONTREAL, March 2 - Canadian seafarers are almost certain
to go on strike this spring in a refusal to meet rollbacks in
wages and benefits asked for by their employers, Seafarers'
International Union official Roman Gralewicz said.
    "It's 99.9 percent--I guarantee you a strike," Gralewicz
said in an interview.
    The union represents about 2,300 workers on the Great Lakes
and Canada's East and West coasts. Contract talks broke off in
January and a conciliator has been appointed to try to help
settle the dispute. The current contract expires at the end of
March.
    The seafarers' employers are also asking for a reduction in
crew levels, a move which the union said would cost about 400
jobs.


.I 13042
.C
earn
.W
DALLAS CORP <DLS> 4TH QTR LOSS.
    DALLAS, March 2 - 
    Oper shr loss 22 cts vs profit 10 cts
    Oper net loss 1,626,000 vs pofit 702,000
    Revs 98.3 mln vs 105.1 mln
    12 mths
    Oper shr profit 18 cts vs profit 82 cts
    Oper net profit 1,293,000 vs profit 5,940,000
    Revs 396.2 mln vs 396.7 mln
    Note: Oper net excludes loss from discontinued operations
of 2,112,000 dlrs or 39 cts a share for year-ago qtr and
2,036,000 dlrs or 1.10 dlrs a share for year-ago 12 mths.


.I 13044
.C
earn
.W
DILLARD DEPARTMENT STORES INC <DDS> 4TH QTR NET.
    LITTLE ROCK, Ark., March 2 - Qtr ended Jan 31
    Shr 1.16 dlrs vs 1.15 dlrs
    Net 32.4 mln vs 33.5 mln
    Revs 629.0 mln vs 538.6 mln
    Avg shrs 32.1 mln vs 29.2 mln
    12 mths
    Shr 2.35 dlrs vs 2.29 dlrs
    Net 74.5 mln vs 66.9 mln
    Revs 1.85 billion vs 1.60 billion
    Avg shrs 31.7 mln vs 29.2 mln
    Note: Shr/avg shrs data show 2-for-1 split in Nov. 1985.


.I 13048
.C
earn
.W
KENTUCKY CENTRAL LIFE <KENCA> SETS PAYOUT.
    LEXINGTON, Ky., March 2 - Kentucky Central Life Insurance
Co said it declared a semi-annual dividend of 55 cts per share,
payable March 31 to shareholders or record March 19.
    The dividend is equal to the company's previous semi-annual
payout.


.I 13049
.C
earn
.W
BANK OF NEW ENGLAND CORP <BKNE> QTLY DIVIDEND.
    BOSTON, March 2 - 
    Qtly div 28 cts vs 28 cts prior
    Pay April 20
    Record March 31


.I 13050
.C
jobs
.W
JAPAN UNEMPLOYMNENT RISES TO RECORD IN JANUARY.
    TOKYO, March 3 - Japan's seasonally adjusted unemployment
rate rose to a record 3.0 pct in January, the worst since the
Government started compiling unemployment statistics under its
current system in 1953, up from the previous record 2.9 pct in
December, the government's Management and Coordination Agency
said.
    Unemployment was up from 2.8 pct a year earlier.
    Unadjusted January unemployment totalled 1.82 mln people,
up from 1.61 mln in December and 1.65 mln a year earlier.
    Male unemployment in January remained at 2.9 pct, equal to
the second-worst level set last December. Record male
unemployement of 3.1 pct was set in July 1986.
    Female unemployment in January remained at 3.0 pct, equal
to the record level marked in April, August, September and
December last year.
    January's record 3.0 pct unemployment rate mainly stemmed
from loss of jobs in manufacturing industries, particularly in
export-related firms, due to the yen's continuing appreciation
against the dollar, officials said.
    Employment in manufacturing industries fell 380,000 from a
year earlier to 14.30 mln including 1.83 mln employed in the
textile industry, down 190,000 from a year earlier, and 1.06
mln in transport industries such as carmakers and shipbuilders,
down 170,000.


.I 13051
.C
earn
.W
FORD <F> EUROPE EARNINGS UP 71 PCT LAST YEAR.
    GENEVA, March 3 - Ford Europe's net earnings soared by 71
per cent last year to 559 mln dlrs, Kenneth Whipple, chairman
of Ford Europe, said.
    Whipple, here to attend the Geneva Auto Show which opens on
Thursday, said that the Ford Motor Co unit had sold a record
1.5 million vehicles in Europe in 1986.
    Net earnings were 326 mln dlrs in 1985.
    Sales in 1986 represented 11.8 per cent of the European
market share, Whipple said. Ford will invest 1.2 billion
dollars in Europe in 1987, and a total of seven billion over
the next seven years, he added.


.I 13053
.C
lei
.W
SOUTH KOREA'S LEADING INDICATORS FALL IN DECEMBER.
    SEOUL, March 3 - South Korea's index of leading indicators
fell 0.1 pct to 164.1 (base 1980) in December after a 0.1 pct
rise in November, representing a 16.1 pct year-on-year gain
from December 1985, Economic Planning Board provisional figures
show.
    The index is based on 10 indicators which include export
values, letters of credit received, warehouse stocks, M-1 and
M-3 money supply figures and the composite stock exchange
index.


.I 13055
.C
dlr;money-fx;yen;
.W
JAPANESE ECONOMIST SEES STABLE YEN/DOLLAR RATES.
    KUALA LUMPUR, March 3 - The yen should stabilize at around
152 to 153 to the U.S. Dollar for about a year, the Bank of
Tokyo's economic adviser Koei Narusawa said.
    "Both sides are showing clear interest to secure stability
of the currencies. The major target of the Japanese government
is to maintain the yen at above 150, at least for the rest of
the year," he told reporters during a brief visit to Malaysia.
    Narusawa said the U.S. Is unlikely to push the yen up
further because this might spark off inflation and depress the
U.S. Economy before the 1988 presidential election.
    The yen is trading at around 153.70 to the dollar.


.I 13056
.C
crude
.W
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS.
    JAKARTA, March 3 - Opec remains within its agreed output
ceiling of 15.8 mln barrels a day, and had expected current
fluctuations in the spot market of one or two dlrs, Indonesian
Energy Minister Subroto said.
    He told reporters after meeting with President Suharto that
present weakness in the spot oil market was the result of
warmer weather in the U.S. And Europe which reduced demand for
oil.
    Prices had also been forced down because refineries were
using up old stock, he said.
    He denied that Opec was exceeding its agreed production
ceiling. Asked what Opec's output level was now, he replied:
"Below 15.8 (mln barrels per day)." He did not elaborate.
    He said there appeared to have been some attempts to
manipulate the market, but if all Opec members stick by the
cartel's December pricing agreement it would get through
present price difficulties.
    He predicted that prices would recover again in the third
and fourth quarters of 1987.
    He also reiterated that there was no need for an emergency
Opec meeting.
    He said Opec had expected to see some fluctuations in the
spot price. "We hope the weak price will be overcome, and
predict the price will be better in the third and fourth
quarters."
    Refiners, he said, appeared to have used up old stock
deliberately to cause slack demand in the market and the price
to fall. But Opec would get through this period if members
stuck together.


.I 13057
.C
wheat;grain;
.W
OFFICIAL INQUIRY SET FOR AUSTRALIAN WHEAT INDUSTRY.
    CANBERRA, March 3 - The government's industry aid and
protection review body, the Industries Assistance Commission
(IAC), will hold a 12-month inquiry into the Australian wheat
industry, Primary Industry Minister John Kerin said.
    The IAC has been asked to report on the need for assistance
to the industry and the nature, duration and extent of any aid,
he said in a statement.
    He said the inquiry will be the first step in setting
marketing arrangements to apply after June 30, 1989, when the
underwriting and pricing provisions of the 1984 Wheat Marketing
Act expire.
    Kerin said the broad-ranging reference would allow a full
examination of all aspects of the wheat-marketing system.
    "The inquiry will be required to take into account changes
which have taken place in the industry as a result of the
agricultural policies of major wheat producing countries and
the industry's capacity to adjust to any recommended changes,"
he said.
    "The inquiry is at an important time for the wheat industry,
as the substantial fall in world prices is likely to trigger
underwriting support from the government for the first time," he
said.
    Kerin was referring to the government's underwriting of the
guaranteed minimum price paid to wheatgrowers by the Australian
Wheat Board near the start of the season.
    The IAC's report will be due at the same time as the
findings of the current Royal Commission into Grain Storage,
Handling and Transport, Kerin said.
    He said the timing of the IAC inquiry would allow its
findings and those of the Royal Commission to be considered in
later negotiations on wheat-marketing arrangements between the
federal and state governments and the industry.


.I 13058
.C
coffee
.W
COFFEE TRADERS EXPECT SELLOFF AFTER ICO TALKS FAIL.
    By Lisa Vaughan, Reuters
    LONDON, March 3 - The failure of the International Coffee
Organization (ICO) to reach agreement on coffee export quotas
could trigger a massive selloff in London coffee futures of at
least 100 stg per tonne today, coffee trade sources said.
    Prices could easily drop to as low as 1.00 dlr or even 80
cents a lb this year from around 1.25 dlrs now, they said.
    A special meeting between importing and exporting countries
ended in a deadlock late yesterday after eight days of talks
over how to set the quotas. No further meeting to discuss
quotas was set, delegates said.
    Quotas, the major device used to stabilize prices under the
International Coffee Agreement, were suspended a year ago after
prices soared following a damaging drought in Brazil.
    With no propects for quotas in sight, heavy producer
selling initially and a price war among commercial coffee
roasting companies will ensue, the trade sources predicted.
    Lower prices are sure to trickle down to the supermarket
shelf this spring, coffee dealers said.
    The U.S. And Brazil, the largest coffee importer and
exporter respectively, each laid the blame on the other for the
breakdown of the talks.
    Jon Rosenbaum, U.S. Assistant trade representative and
delegate to the talks, said in a statement after the council
adjourned, "A majority of producers, led by Brazil, were not
prepared to negotiate a new distribution based on objective
criteria.
    "We want to insure that countries receive export quotas
based on their ability to supply the market, instead of their
political influence in the ICO."
    Brazilian Coffee Institute (IBC) President Jorio Dauster
countered, "Negotiations failed because consumers tried to
dictate quotas, not negotiate them."
    Previously, quotas were determined by historical amounts
exported, which gave Brazil a 30 pct share of a global market
of about 58 mln 60-kilo bags. A majority of producers wanted
quotas to continue under this basic scheme.
    But most consumers and a maverick group of eight producers
proposed carving up the export market on the basis of
exportable production and stocks, which would reduce Brazil's
share to 28.8 pct.
    Consumer delegates said this method would reflect changes
in many countries' export capabilities and make coffee more
readily available to consumers when they need it.
    A last-minute attempt by Colombia, the second largest
exporter, to rescue the talks with a compromise interim
proposal could not bring the two sides together.
    Delegates speculated Brazil's financial problems,
illustrated by its recent suspension of interest payments on
bank debt, have increased political pressure on the country to
protect its coffee export earnings.
    Developing coffee-producing countries that depend heavily
on coffee earnings, particularly some African nations and
Colombia, are likely to be hurt the most by the ICO's failure
to agree quotas, analysts said.
    The expected drop in prices could result in losses of as
much as three billion dlrs in a year, producer delegates
forecast.
    The ICO executive board will meet March 31, but the full
council is not due to meet again until September, delegates
said.


.I 13060
.C
acq
.W
KRUNG THAI BANK TO TAKE OVER SAYAM BANK.
    BANGKOK, March 20 - The state-owned Krung Thai Bank Ltd
will start taking over state-owned Sayam Bank Ltd and complete
the process in a year, Finance Minister Suthee Singhasaneh told
a press conference.
    He said the takeover decision was made this week to stem
the current heavy losses of Sayam and to avoid competition
between the two state-owned institutions.
    The minister said some of the existing 30 Sayam Bank
branches will be merged with their Krung Thai counterparts,
while others will continue operating but under Krung Thai's
name.
    Sayam Bank has existed since August 1984 when the Finance
Ministry took over and re-named the Asia Trust Bank Ltd.
    Sayam president Waree Havanonda told reporters last month
her bank posted a loss of more than 400 mln baht in 1986. At
the end of 1985 the bank, with 13.8 billion baht of assets, was
ranked 12th among Thailand's 16 local commercial banks.
    Waree said Sayam Bank was trying to recall about six to
seven billion baht of loans extended by its previous private
management and was taking legal action to collect another four
to five billion baht of doubtful debts.
    Krung Thai is Thailand's third largest bank.


.I 13062
.C
earn
.W
KOMATSU LTD <KOMT.T> YEAR 1986.
     TOKYO, March 20 -
     Group shr 17.68 yen vs 26.49
     Net 14.70 billion vs 21.92 billion
     Pretax 35.76 billion vs 48.85 billion
     Operating 32.88 billion vs 51.90 billion
     Sales 788.73 billion vs 796.24 billion
     NOTE - Company forecast for current year is group net
15.50 billion on sales of 800 billion.


.I 13064
.C
bop;trade;
.W
S. KOREAN FEBRUARY CURRENT ACCOUNT SURPLUS NARROWS.
    SEOUL, March 20 - South Korea's current account surplus
narrowed to 419 mln dlrs in February from 679 mln in January
compared with a deficit of 112 mln dlrs in February last year,
provisional Bank of Korea figures show.
    The current account in the two months of January and
February swung to a surplus of 1.1 billion dlrs from a deficit
of 494 mln dlrs in the same 1986 period.
    The February trade surplus narrowed to 235 mln dlrs from
582 mln in January compared with a deficit of 98 mln dlrs a
year ago.
    The overall balance of payments surplus rose to 840 mln
dlrs in February from 716 mln in January and 76 mln in February
1986.
    Exports were 2.86 billion dlrs in February against 2.83
billion in January and 2.23 billion in February last year.
Imports were 2.63 billion against 2.25 billion and 2.32
billion.
    The February invisible trade surplus rose to 109 mln dlrs
from 24 mln in January and compared with a deficit of 74 mln a
year ago.
    The transfer payments surplus widened to 75 mln dlrs in
February from 73 mln in January and 60 mln a year ago.
    The long-term capital account surplus was 198 mln dlrs in
February against 211 mln in January and 55 mln in February last
year. The short-term capital account surplus was 87 mln dlrs
against 46 mln and 158 mln.
    The errors and omissions account left a surplus of 840 mln
dlrs in February against deficits of 220 mln in January and 25
mln in February 1986.


.I 13065
.C
earn
.W
KIRIN BREWERY CO LTD <KNBW.T> YEAR TO JANUARY 31.
    TOKYO, March 20 -
    Parent shr 37.12 yen vs 34.97
    Div 9.50 yen vs 7.50
    Net 33.34 billion vs 31.05 billion
    Current 79.30 billion vs 73.32 billion
    Operating 72.13 billion vs 65.53 billion
    Sales 1,222 billion vs 1,211 billion
    Outstanding shrs 897.96 mln vs 887.76 mln
    NOTE - 1986/87 dividend included two yen bonus dividend to
mark 80th anniversary. Company forecast for current year is
parent shr 37.86 yen, div 7.50 yen, net 34 billion, current 81
billion and sales 1,250 billion.


.I 13066
.C
wheat;grain;sugar;rice;tea;
.W
ECONOMIC SPOTLIGHT - ASIAN DROUGHTS.
    By Gavin Greenwood, Reuters
    HONG KONG, March 20 - Three geographically diverse droughts
in Asia are being linked by some scientists to a
reintensification of the complex and little-understood El Nino
weather pattern, <Accu-Weather Inc>, a commercial weather
forecasting service, said.
    Rice and wheat farmers in China, wheat and sugarcane
growers in Australia and tea planters in Sri Lanka all face
serious losses to their respective harvests unless rains arrive
in time to break the droughts, offical reports, government
officials and meteorologists said.
    Wen Wei Po, a Hong Kong daily with close Peking links, said
the drought is the worst in over 20 years and some provinces
have been without adequate rainfall for more than seven months.
    Rice planting is threatened in eight provinces, it added.
    Rainfall in the key farming provinces of Henan and Sichuan
was 70 pct below average during February, the lowest figure for
over 20 years, the paper said.
    The dry weather has cut stored water volumes by over 20 pct
compared with last March and lowered the water levels of many
rivers, it added.
    This has resulted in reduced hydro-electric power, causing
shortages to industry and households. The upper reaches of the
Yangtze are at their lowest levels in a century, causing many
ships to run aground, Wen Wei Po said.
    Unusually high temperatures have also been reported across
China, media reports said. The People's Daily said Sichuan has
recorded temperatures three degrees Celsius higher than average
since early February.
    The New China News Agency said the average December
temperature in Harbin in the northeast was six degrees higher
than last December and 14 degrees higher than December 1984.
    Severe drought is affecting about one-third of Sri Lanka
and threatens to reduce the country's tea crop, Ministry of
Plantation Industries officials told Reuters
    In Australia, concern is growing about below-average
rainfall levels in parts of the sugarcane belt along the
Queensland coast and in Western Australia's wheat belt, local
Meteorological Bureau officials said.
    For many farmers and government officials the fear is that
while the present low rainfall does not yet pose a major
threat, the prospect of a dry autumn/winter season when the
wheat crop is in its early stages certainly does, they added.
    Concern is heightened by the memory of the 1982/83 drought
which devastated the wheat crop and coincided with the
occurrence of the barely understood weather phenomenon known as
El Nino, they said.
    Although meteorologists are cautious about linking the
Asia-Pacific region's disrupted weather patterns to any single
cause, El Nino's role is being closely studied, they said.
    Accu-Weather Inc, which specialises in providing data for
agriculture and shipping interests, said each El Nino 'event'
was unique.
    The El Nino does not always produce the same effects and
the present occurrence is much less pronounced than the last
major event in 1982/83, it said.
    El Nino, Spanish for "Christ Child" because it appears around
Christmas, is formed by the action of warm air, bearing clouds
and rain, shifting from the Indonesian archipelago to the coast
of Peru, where it mingles with the cold waters associated with
the Peru current and returns across the Pacific as the trade
winds, meteorologists said.
    The winds, strengthened by El Nino's "pump" effect, raise the
sea level off Australia and Indonesia, they said.
    When the winds drop, the ocean, seeking equilibrium, sends
a surge of warmer water back across the Pacific where it
collides with the cold seas off Peru, they said.
    One effect of this heat exchange is to deflect the
rain-bearing clouds away from Australia and Indonesia into the
Pacific, where they further disrupt other weather patterns.
    The prospects for an end to the droughts vary, Accu-Weather
said.
    China, where the affected areas have received between 40
and 75 pct of normal rainfall, will have to wait for the
May-September rains, it said.
    The May-September rains normally provide the
drought-striken areas with 80 pct of annual rainfall.
    In Australia, areas of Queensland's coastal strip have
received less than half the normal rainfall during the current
wet season, but prospects for increased rains are diminishing
as the rainy season draws to an end.
    In Sri Lanka, the drought has come when rainfall should be
at its maximum for the year. The year's secondary rains usually
occur between April and June, although it is not possible at
this stage to forecast whether they will arrive as usual.


.I 13069
.C
acq
.W
RAINBOW AND EQUITICORP PLACE ULTRAMAR STAKE.
    WELLINGTON, March 20 - New Zealand investment companies
<Rainbow Corp Ltd> and <Equiticorp Holdings Ltd> have placed
the majority of their joint shareholding in oil and gas
conglomerate Ultramar PLC <UMAR.L> at prices up to 2.20 stg per
share, the companies said in a statement.
    The companies said they had bought their 4.9 pct stake in
Ultramar for a total of 50 mln N.Z. Dlrs through a joint
venture company formed for that purpose in October.
    They said the joint venture made a profit of 15 mln N.Z.
Dlrs on the deal, but they did say how many shares they had
sold. No further details of the sale were available.


.I 13073
.C
copper
.W
PHILIPPINE COPPER SMELTER FACES SHIPMENT DELAYS.
    MANILA, March 20 - Copper shipments are likely to be
delayed because of power problems at <Philippine Associated
Smelting and Refining Corp> (PASAR), the country's only
smelter, a company official said.
    Asked to confirm reports by New York copper trade sources
about PASAR's shipment problems, marketing manager Deogracias
Madrid told Reuters, "They are partly correct. There could be a
probable delay."
    Madrid declined to give more details, or production and
export figures, saying the information could lead to
speculation.
    PASAR's smelter is in the central province of Leyte.
    The New York trade sources said if PASAR's shipments were
delayed, customers might have to turn to the London Metal
Exchange for supply.
    "We have a commitment to our customers and I would not like
to comment on that," Madrid said.
    A spokeswoman for the Chamber of Mines said Philippine
copper production amounted to 222,644 tonnes in 1986, down
slightly from 226,157 tonnes in 1985. She said production in
the first two months of 1987 totalled 34,550 tonnes, compared
with 36,462 tonnes in the same 1986 period.


.I 13075
.C
money-supply
.W
****** German M3 rose 2.6 billion marks in February to 1,035.1 billion - Bundesbank.
Blah blah blah.

.I 13076
.C
money-supply
.W
GERMAN M3 RISES 2.6 BILLION MARKS IN FEBRUARY.
    FRANKFURT, March 20 - West German M3 money supply rose a
seasonally adjusted 2.6 billion marks in February to 1,035.1
billion, the Bundesbank said.
    The rise compares with a revised 14.8 billion mark increase
in January and a 2.2 billion rise in February 1986.


.I 13078
.C
iron-steel
.W
NON-COMMUNIST STEEL OUTPUT CONTINUES TO FALL.
    BRUSSELS, March 20 - Steel output in the major
non-Communist producing countries fell sharply in February,
continuing a long-running trend, International Iron and Steel
Institute figures showed.
    Production in the 30 countries which report their figures
to it was 6.9 pct below the February 1986 level at 32.03 mln
tonnes.
    Output in the United States fell 18.5 pct to 5.30 mln
tonnes, that in Japan 7.8 pct to 7.27 mln and that in the
European Community 6.5 pct to 9.91 mln.
    The figures continue to indicate a switch away from these
traditional major producing countries to the more advanced
developing countries.
    Brazilian February output rose 9.2 pct from year-earlier
levels to 1.73 mln tonnes and that in South Korea was up 7.5
pct at 1.17 mln tonnes.
    The 30 countries covered by the figures account for about
97 pct of world non-Communist steel production, the Institute
said.


.I 13079
.C
acq
.W
GUINNESS STARTS COURT ACTION AGAINST SAUNDERS.
    LONDON, March 20 - Guinness Plc <GUIN.L> said it has
started court proceedings against former chairman and chief
executive Ernest Saunders and non-executive director Thomas
Ward for recovery of 5.2 mln stg.
    The money was paid to Ward via Marketing and Acquisition
Consultants Ltd in Jersey.
    Guinness said earlier it would propose a resolution at the
annual meeting in May to remove Saunders and Ward as directors
of the company.  Earlier this month, lawyers for Ward told a
Jersey court that Ward saw the payment as his reward for
services in last year's takeover battle for <Distillers Co
Plc>.
    Guinness has said that both men breached their fiduciary
duty in authorising the payment.
    Saunders resigned from his executive positions at Guinness
in January in the aftermath of a government enquiry into share
dealings during the battle for Distillers but retained his
position on the board.
    No spokesman for Guinness was immediately available for
comment on the statement.


.I 13080
.C
money-fx;interest;
.W
NEW DUTCH ADVANCES TOTAL FOUR BILLION GUILDERS.
    AMSTERDAM, March 20 - The Dutch Central Bank said it has
accepted bids totalling 4.00 billion guilders at tender this
morning for new five-day special advances at 5.3 pct for the
period March 20 to 25.
    Subscriptions to 250 mln guilders were fully met, amounts
above 250 mln at 30 pct.
    The new facility replaces old 11-day advances totalling 6.5
billion guilders at the same rate.


.I 13083
.C
money-fx;interest;
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, March 20 - The Bank of England said it had invited
an early round of bill offers from the discount houses after
forecasting a shortage of around 950 mln stg in the money
market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
around 572 mln stg while a rise in note circulation wil take
out some 280 mlns stg.
    In addition, exchequer transactions and bankers' balances
below target will remove some 85 mln stg and 15 mln stg for the
system respectively.


.I 13085
.C
interest
.W
******Abbey National said it cutting U.K. Mortgage rate by 1.125 pct to 11.25 pct.
Blah blah blah.

.I 13086
.C
grain;meal-feed;
.W
INDIA DETAILS RAIN/FLOOD DAMAGE TO GRAIN IN 1986.
    NEW DELHI, March 20 - Rain and floods in India last year
damaged about 69,000 tonnes of grain intended for human
consumption during storage and transportation, food and civil
supplies minister H. K. L. Bhagat told Parliament.
    He did not give comparative figures and said the
government-owned Food Corporation of India (FCI) had not yet
decided whether these grains could be used as cattle feed.
    Bhagat said the FCI had a total of 16.43 mln tonnes of food
grains in its warehouses at the end of 1986. It had asked state
governments to build more warehouses to avoid damage to grains.


.I 13087
.C
lumber
.W
TROPICAL FOREST DEATH COULD SPARK NEW DEBT CRISIS.
    By Eric Hall, Reuters
    TOKYO, March 20 - The death of the world's tropical rain
forests could trigger a new debt crisis and social and
biological disasters, scientists and ecologists involved with
the International Tropical Timber Organisation (ITTO) said.
    At stake is the ability of developing nations, including
Brazil, Mexico and the Philippines, to service their debts and
the loss of trade worth hundreds of billions of dollars in
important sectors such as agriculture and pharmaceuticals, they
said.
    The experts, gathering ahead of an ITTO meeting of
consumers and producers near Tokyo next week, said the problem
is already acute.
    The Philippines offers a textbook case of the economic
dangers. "For many third world nations, the loss of the forest
is not just a loss of resources," said Delfin Ganapin, a
Philippine government consultant on environmental impact.
    "In the 1960s we had 16 mln hectares of commercial forest,
now we have one mln. We have only around 10 years of profitable
logging left. With a 26 billion dlr debt, the loss of logging
foreign exchange earnings is serious," he said.
    About 14 mln Philippine people depend on upland areas that
are now denuded and farmers cannot grow crops.
    Government security advisers say that as a direct result,
the most likely source of revolution in the Philippines is in
the upland areas, said Ganapin.
    Replanting is uneconomic and replanted tropical hardwoods
have less than a 50 pct chance of survival. There is no known
way to reproduce the wood, or the millions of species within.
    "No replanting programme has been successful," said Almy
Hafild from the Indonesian Network for Forest Conservation.
    Ganapin said three billion dlrs would be needed in the next
two years alone to save five mln hectares of critically denuded
land in the Philippines.
    The experts say that without a major initiative from the
development banks, the vicious circle will continue with
countries cutting more forest to help service short-term debts
at the cost of long-term insolvency.
    Yet timber, a five billion dlr a year industry, is not
necessarily the most direct economic product of the forests,
and nations must be educated in how best to "farm" them, said
Peter Kramer, World Wildlife Fund (WWF) conservation director.
    There is a four billion dlr annual global trade in the end
products of rattan, and Brazil nuts earn Brazil 16 mln dlrs a
year, he said.
    U.S. Pharmacologist Norman Farnsworth has calculated that
25 pct of all U.S. Prescriptions owe their active ingredients
to higher plants growing in the forests.
    Deforestation would wipe out the chance of further
discoveries and force major corporations to research, develop
and produce man-made substitutes, at a cost which scientists
say is incalculable.
    By the year 2000, only 10 developing nations will still be
exporting timber, from 33 currently, and their export earnings
will drop from a 1980 peak of 6.8 billion dlrs to less than two
billion, a World Bank and U.N. Sponsored survey said.
    Of the 20.3 billion dlrs advanced by the World Bank,
Inter-American, African and Asian Development Banks in 1980-84,
only 100 mln dlrs went to forestry projects, it said.
    WWF statistics show half of the world's tropical forests
have vanished since the 1940s. Of 2,000 mln hectares remaining,
up to 16 mln are destroyed each year by destructive logging
practises and by local farmers.


.I 13089
.C
money-fx
.W
BANK OF FINLAND WILL ANNOUNCE NEW MEASURES.
    HELSINKI, March 20 - The Bank of Finland called a news
conference at 1200 GMT to announce new measures for the
"development of the system of monetary control."
    A spokesman for the Bank declined to give further details.
    Banking sources said they expected the bank to announce it
will actively take part in the interbank market and buy and
sell certificates of deposit.
    The state treasury issues government paper with a maturity
of up to one year. The central bank has so far not issued its
own paper, the sources said.


.I 13090
.C
sugar
.W
JAPAN SLIGHTLY REDUCES SUGAR CONSUMPTION ESTIMATE.
    TOKYO, March 20 - The Agriculture Ministry said it revised
its April-June sugar consumption estimate down to 623,300
tonnes on a refined basis, from 637,800 estimated at the end of
December.
    It said the estimate for domestically produced sugar supply
for the same period was revised to 190,400 tonnes from the
earlier estimate of 195,100 tonnes, while imports were revised
to 402,000 tonnes from the earlier 435,800 tonnes.
    It did not revise its sugar consumption estimate of 2.53
mln tonnes for the 1986/87 sugar year ending September 30.
    The ministry said the estimate for the 1986/87 year's
supply of domestically produced sugar was revised to 881,000
tonnes, from the earlier estimate of 863,000.
    The estimate for 1986/87 imports was revised to 1.642 mln
tonnes, from an earlier 1.645 mln tonnes.


.I 13091
.C
acq
.W
GERMAN VEBA PLACEMENT SAID LIKELY EARLY NEXT WEEK.
    FRANKFURT, March 20 - The placement of the German federal
government's 25.6 pct stake in utility Veba AG <VEBG.F> would
probably take place early next week, banking sources said.
    Share dealers said speculation had arisen in the early
pre-bourse market that the Veba announcement could come as
early as today. But one banking source, though confirming that
most of the details had been worked out, said the chances of an
announcement today were about nil. He had no price details.
    The 10 mln shares on offer are expected to bring a cash
call in Germany for well over two billion marks. The share was
around 253 marks today after a 6.50 drop to 252 yesterday.


.I 13092
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 728 MLN STG EARLY HELP.
    LONDON, March 20 - The Bank of England said it had provided
the money market with 728 mln stg assistance in response to an
early round of bill offers from the discount houses.
    Earlier, the Bank had estimated the shortage in the system
today at 950 mln stg.
    The central bank purchased 625 mln stg of bills for resale
to the market on April 7 at rates of interest between 9-15/16
pct and 10 pct.
    It also bought 103 mln stg bank bills outright comprising
65 mln stg in band one at 9-7/8 pct and 38 mln stg in band two
at 9-13/16 pct.


.I 13095
.C
alum
.W
****** Feb daily ave unwrought aluminium output 33,900 tonnes, up 400 tonnes, IPAI.
Blah blah blah.

.I 13097
.C
earn
.W
STANDARD BANK UNABLE TO MAKE EARNINGS FORECAST.
    JOHANNESBURG, March 20 - Standard Bank Investment Corp Ltd
(SPRJ.J) chairman Henri de Villiers said he could not predict
profits for the bank this year because of South Africa's
continuing political unrest.
    De Villiers also warned in the annual report that "failing
prompt and decisive political action, South Africa faces a
future of violent deadlock between different racial and
political groupings." 
    He said South Africa's future economic prospects are
"clouded by political and social issues and in the absence of
evidence that these are being positively addressed I am unable
to offer an earnings forecast for 1987."
    Standard Bank, 39 pct owned by Standard Chartered PLC
 <STCH.L>, London, previously reported that 1986 net income
rose by 13.8 pct to 209.0 mln rand.
    The bank said its bad debt losses should begin to decline
this year "although it may take some time before they return to
accepted industry norms."
    The annual report showed that the bank's charge for bad and
doubtful debts rose in 1986 to 187.6 mln rand from 162.1 mln
rand in the prior year.
    The bank said net income of its Standard Bank of South
Africa subsidiary declined 8.2 pct in 1986 to 112.3 mln rand in
a difficult banking environment caused mainly by low credit
demand.


.I 13098
.C
alum
.W
NON-COMMUNIST FEBRUARY ALUMINIUM OUTPUT UP, IPAI.
    LONDON, March 20 - Non-Communist daily average unwrought
aluminium production in February was 33,900 tonnes, up 400
tonnes from a downwardly revised 33,500 tonnes in January and
compared with 32,900 tonnes in February 1986, provisional
figures from the International Primary Aluminium Institute
(IPAI) show.
    Total production in February (28 days) was 949,000 tonnes
compared with a downwardly revised 1.038 mln in January (31
days) and 920,000 in February 1986.
    The regional breakdown of unwrought aluminium production
was as follows (in thousands of tonnes) the IPAI said.
                 Feb'87   Jan'87    Feb'86
    Africa           45       50        41
    North America   354      389       353
    Latin America   115      121        98
    East Asia         7        9        16
    South Asia       72       79        72
    Europe          268      293       256
    Oceania          88       97        84


.I 13100
.C
grain;barley;
.W
EC APPROVES 25,000 TONNES OF BARLEY EXPORTS.
    LONDON, March 20 - The European Community authorised the
export of 25,000 tonnes of barley yesterday, bringing the
cumulative total at weekly tenders since the series started
last June to 3.33 mln tonnes, close to the 3.37 mln under
licence in the same year ago period, traders said.
    All bids for wheat were rejected. However, the total to
date of 5.06 mln tonnes is still substantially more than the
3.03 mln under licence a year ago. The 80,000 tonnes of French
maize granted for export moved the total to 135,000 tonnes
since the tender opened in February this year. There were no
facilities for maize in the previous weekly grain export
series.


.I 13101
.C
cpi
.W
******U.K. FEB RETAIL PRICES UP 0.4 PCT, BASE REVISED, YEAR-ON-YEAR RISE 3.9 PCT - OFFICIAL.
Blah blah blah.

.I 13102
.C
gnp
.W
******UK AVERAGE GDP RISES PRELIMINARY 2.6 PCT IN 1986, UP 0.7 PCT IN 4TH QTR  - OFFICIAL.
Blah blah blah.

.I 13104
.C
gnp
.W
U.K. AVERAGE GDP RISES 2.6 PCT IN 1986.
    LONDON, March 20 - Britain's gross domestic product (GDP)
on the average basis of output, expenditure and income rose by
2.6 pct in 1986 after a 3.4 pct increase a year earlier,
Central Statistical Office (CSO) preliminary figures show.
    In the fourth quarter, GDP rose 0.7 pct over the previous
quarter and was up 3.3 pct on the same 1985 quarter.
    The average estimate index, seasonally-adjusted and based
1980, was set at 114.3 in the fourth quarter of 1986 against
113.5 in the previous quarter and 110.7 in the final quarter of
1985.
    The CSO said the average GDP estimate index for 1986 as a
whole was 113.1, up 2.6 pct from 110.2 for 1985.
    On the output measure, GDP rose an upward revised
seasonally adjusted 0.3 pct in the fourth quarter of 1986 to
114.9 on the output index from 114.5 in the previous quarter,
giving a 3.2 pct rise over the fourth 1985 quarter, the CSO
figures show.
    On income-based GDP, the index in the fourth quarter rose
by 0.7 pct from the third quarter and was up 3.8 pct on the
year-ago quarter.
    The indices stood at 115.3, 114.4 and 111.0 respectively.
    Expenditure-based GDP rose 1.2 pct in the fourth quarter of
1986 from the third quarter and was up 2.9 pct from the same
1985 quarter.
    The CSO set the expenditure index at 112.9 from 111.6 in
the third quarter of 1986 and 109.8 in the final 1985 quarter.
    The year-on-year rise for expenditure GDP was 2.3 pct with
the expenditure index for the whole of 1986 set at 111.9
against 109.4 a year earlier.
    For income GDP, the year-on-year rise was 2.6 pct against
against three pct a year earlier. The ouptut GDP measure rose
2.8 pct year-on-year, down from 3.8 pct in 1985.
    The government usually considers the output measure the
most reliable way of measuring short-term GDP changes.
    It is based on output data for production industry and
partial information for the rest of the economy.
    The government had forecast that average measure GDP would
rise 2.5 pct in calendar 1986 after 3.3 pct in 1985. The budget
unveiled on Tuesday foresaw GDP growth in 1987 of three pct.
    The GDP deflator, based on expenditure at market prices,
rose 1.2 pct in the fourth quarter from the third, to give a
2.4 pct rise over fourth quarter 1985. Year-on-year, the
deflator rose 3.7 pct.


.I 13105
.C
cpi
.W
U.K. RETAIL PRICES RISE 0.4 PCT IN FEBRUARY.
    LONDON, March 20 - The Retail Price Index (RPI), Britain's
measure of inflation, rose 0.4 pct in February on a revised
basis, to give a year-on-year rise of 3.9 pct, the Employment
Department said.
    In January, the index rose 0.4 pct for a 3.9 pct
year-on-year rise on both the previous base and the new index.
    The February RPI was set at 100.4, base January 1987. In
February 1986, the RPI rose 0.4 pct, giving a 5.1 pct
year-on-year increase on the old basis.
    The inflation data compares with market forecasts for a
rise of 0.4 - 0.5 pct in February and a yearly rise of about
four pct, economists said.
    The Employment Department said the rise in the index
between January and February was mainly the result of higher
prices for petrol, fresh vegetables, cars and car maintenance.


.I 13106
.C
wpi
.W
DANISH WHOLESALE PRICES FALL 0.5 PCT IN FEBRUARY.
    COPENHAGEN, March 20 - Denmark's wholesale price index fell
0.5 pct in February, giving a year-on-year fall of 4.9 pct, the
National Statistics Office said.
    The index, base 1980, stood at 135 in February, a fall of
one point compared to January, against 142 in February 1986.


.I 13108
.C
money-fx;interest;money-supply;
.W
BANK OF SPAIN SUSPENDS ASSISTANCE, DRAINS FUNDS.
    MADRID, March 20 - The Bank of Spain suspended its daily
money market assistance and offered to drain funds with three-
and seven-day repurchase agreements at 12-1/2 pct, money market
sources said.
    The sources said the measures were a further attempt to
rein in money supply and were likely to force some institutions
to scramble for funds before the 10-day accounting period for
reserve requirements closes on Monday.
    The bank, which raised its rate for ordinary overnight
assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its
special borrowing facility for overnight funds at 14-1/2 pct.
    Money market sources said institutions in need of funds
were likely to have to return to the bank tomorrow for further
assistance.
    The bank rarely invites applications for ordinary
assistance on a Saturday and the sources said it was more
likely to open its special borrowing facility again.


.I 13111
.C
cpi
.W
******CANADA CONSUMER PRICE INDEX ROSE 0.4 PCT IN FEBRUARY, STATISTICS CANADA SAID.
Blah blah blah.

.I 13112
.C
cpi
.W
CANADA FEBRUARY CONSUMER PRICES UP 0.4 PCT.
    OTTAWA, March 20 - The Canadian consumer price index rose
0.4 pct in February, to 135.8, base 1981, compared with a 0.2
pct rise in January and a 0.4 pct rise in February last year,
Statistics Canada said.
    The February year-one year rise was 4.0 pct compared with a
3.9 pct rise in January.R


.I 13113
.C
tin
.W
BOLIVIAN MINERS CALL GENERAL STRIKE.
     LA PAZ, March 19 - About 9,000 miners employed by the
state corporation, Comibol, declared a general strike as from
midnight (0400 gmt) to press for higher salaries, a statement
by the federation for Bolivian mine workers said.
     It said the strike was called to defend the nationalised
mining industry. The miners were willing to negotiate with the
government of President Victor Paz Estenssoro, but only if it
showed an intention to meet the strikers' demands.
     The government said the strike was designed to cause it
embarrassment during the four-day visit of West German
President Richard Von Weizsaecker, which starts on Friday.
    The miners statement said police had violently evicted
Comibol office workers in the city of Oruro after they began a
hunger strike yesterday.
    The government has sacked about 20,000 miners from its
deficit-ridden corporation since the collapse in the
international price of tin. The lay-offs represent about
two-thirds of the original workforce.


.I 13114
.C
acq
.W
KLM EXPANDS TALKS WITH BRITISH AND COMMONWEALTH.
    AMSTERDAM, March 20 - KLM Royal Dutch Airways <KLM.AS> said
it agreed to take full control of a partially owned Dutch-based
parcel delivery service and will offer a minority stake in it
to British and Commonwealth Shipping Plc <BCOM.L>
    KLM, seeking to strengthen its market position in the fast
growing door-to-door delivery market, said it agreed with Dutch
retailer Vendex International <VENN.AS> to take over Vendex's
50-pct in their jointly-owned courier, <XP System VOF>.
    Ownership of XP will now be brought into the talks started
by KLM last week with British and Commonwealth for a one-third
stake in the latter's <IML Air Services Group Ltd> courier.
    When announcing the negotiations with British and
Commonwealth last week, KLM said buying a minority stake in IML
could involve a convertible loan issue.
    A KLM spokeswoman said the Dutch flag carrier would now
offer a minority stake in XP to British and Commonwealth in the
negotiations on IML, but declined to elaborate on financial
aspects of the talks.
    She said KLM would like the two courier services to
cooperate in future and did not exclude a future merger between
them to combine IML's strong world-wide network with XP's
mainly European activities.
    XP System is based in the southern Dutch airport of
Maastricht and has an annual turnover of 100 mln guilders.
    KLM, which is also negotiating with British and
Commonwealth for a 15-pct stake in the latter's regional
airline <Air U.K. Ltd>, says door-to-door delivery courier
services are seeing substantially faster growth than
traditional cargo activities.


.I 13117
.C
acq
.W
RAINBOW SAYS BRIERLEY UPSETTING PROGRESSIVE MERGER.
    WELLINGTON, March 20 - <Rainbow Corp Ltd> said <Brierley
Investments Ltd> (BIL) is trying to disrupt Rainbow's planned
merger with <Progressive Enterprises Ltd>.
    Rainbow chairman Allan Hawkins said in a statement, "In our
opinion BIL have deliberately tried to create anomalies in the
market prices of Rainbow and Progressive shares since the
merger was announced."
    The merger, announced in February, involves the formation
of a new company, <Astral Pacific Corp Ltd>, which Rainbow and
Progressive shareholders will enter into on a one-for-one share
basis. Both boards have approved the merger.
    BIL has said it was the mystery bidder behind a recent
stand in the market for three mln Progressive shares.
    "We simply regard Progressive Enterprises shares to be worth
approximately twice as much as Rainbow shares and do not think
the merger, as proposed, is soundly based," BIL chief executive
Paul Collins said in an interview in the weekly National
Business Review newspaper published today.
    Collins was not immediately available to respond directly
to Hawkins' statement.
    Hawkins said the merger has been assessed by independent
consultants and declared fair in all respects, with benefits to
all shareholders.
    "We are not going to stand by while other parties distort
the picture for their own strategic purposes and distract the
market away from the real benefits of the merger," he said.
    "In our opinion, BIL's actions are clearly not designed to
be in the long term interests of either Progressive or Rainbow
shareholders," Hawkins said.


.I 13120
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 31 MLN STG HELP.
    LONDON, March 20 - The Bank of England said it gave the
money market another 31 mln stg in assistance in the morning
session.
    This brings the Bank's total help today to 759 mln stg and
compares with its estimate of a 1.05 billion stg money market
shortage which it earlier revised up from 950 mln stg.
    The central bank bought 31 mln stg of bank bills outright
in band two at 9-13/16 pct.


.I 13121
.C
trade
.W
TAIWAN PLANS MISSION TO CLOSE TRADE GAP WITH U.S.
    TAIPEI, March 20 - Taiwan's leading industrial organisation
said it will send its first buying mission to the U.S. Later
this year in an effort to reduce the country's trade surplus
with Washington.
    A spokesman for the Chinese National Federation of
Industries told Reuters the mission was part of a broader plan
to switch large purchases to the U.S. From Japan.
    The Federation groups all of Taiwan's major industrial
associations. Last year its members purchased about 4.5 billion
U.S. Dlrs worth of industrial products from Japan and about 1.8
billion from the U.S.
    The spokesman said Federation members were now discussing
the volume of business they could transfer to America.
    He said they had drawn up a list of about 80 industrial
products they would be shopping for in the U.S. During the
buying mission in September, but he could give no figure on how
much would be spent.
    A Board of Foreign Trade official told Reuters the
government would send two buying missions to America between
June and July this year and might send others later.
    Taiwan's trade surplus with the U.S. Rose to a record 13.6
billion dlrs last year from 10.2 billion in 1985.


.I 13123
.C
alum
.W
CORRECTION - NON-COMMUNIST FEBRUARY ALUMINIUM.
    In today's London item +NON-COMMUNIST FEBRUARY ALUMINIUM
OUTPUT UP, IPAI+ please read in first paragraph and throughout
+...Daily average primary aluminium production...+, correcting
from +average unwrought aluminium production+.


.I 13124
.C
acq
.W
NEWMAN, HAWKER DISCUSS ELECTRIC MOTOR MERGER.
    LONDON, March 20 - <Newman Industries Plc> said it was
discussing the possible merger of its electric motor operations
with Hawker Siddeley Group Plc's <HSID.L> <Brook Crompton
Parkinson Motors Ltd> unit.
    Newman has electric motor operations in the U.K. And
Australia. The company gave no further details but said a
further statement would be made shortly.
    Newman shares eased one penny on the announcement to 43p
while Hawker was unchanged at 528p, three pence higher on last
night's close.


.I 13125
.C
acq
.W
AKZO BUYS RHONE-POULENC HOUSEHOLD UNITS.
    ARNHEM, Netherlands, March 20 - Dutch chemical group Akzo
N.V. <AKZO.AS> said it agreed to take over household product
subsidiaries of French group Rhone-Poulenc <RHON.PA> for an
undisclosed sum.
    Under the agreement, Akzo will acquire the household
product activities of the Lyons-based <Rhodic> and
Remalard-based <Buhler-Fontaine> units of Rhone Poulenc.
Together, these activities account for over 180 mln French
francs in annual sales and employ 170, Akzo said.
    Akzo will integrate the firms, to be partially joined with
its own French activities, in its consumer products division.


.I 13126
.C
acq
.W
SWISS BANKER WANTS BOND RATINGS, SHARE DISCLOSURE.
    ZURICH, March 20 - A top Swiss banker called for an
obligatory, continuous rating for all Swiss franc bonds and
said he believed anyone buying more than five pct of a company
should be made to declare their share.
    In comments at a news conference of <Vontobel Holding AG>,
chairman Hans Vontobel said he believed it was up to the banks'
own self-regulating bodies, such as the Swiss Admissions Board,
to take such action before governmental bodies stepped in.
    A decline in the average quality of borrowers on the Swiss
franc market and a debate on the use of registered shares to
prevent takeovers have made both major issues among bankers.
    Vontobel noted that many borrowers already came to the
market with ratings from the major U.S. Agencies, which were
readily available to professionals through specialised
information systems.
    "We should make this classification obligatory and publish
it in places that are easily accessible to lay people," he said.
The quick changing nature of the financial market meant these
ratings should also be continually updated, he said.
    Vontobel also noted that recent years had seen companies,
worried about takeovers, increasingly issuing registered shares
and participation certificates rather than bearer shares.
    However, both types of issue had a drawback, he said. The
recent attempt by Jacobs Suchard AG <JACZ.Z> to take over Hero
Conserven Lenzburg <HERZ.Z> had shown the limits of a 1961
pledge by the banks not to sell registered shares to someone
who was not eligible according to the company's statutes.
    Excessive issue of participation certificates, which do not
carry voting rights, would also be contrary to the principle of
greater democracy in the new share law before Parliament.
    "People buying, for example, more than five pct of a
company's shares should be made to declare their purchase," he
said.


.I 13127
.C
ipi
.W
ITALIAN JANUARY INDUSTRIAL OUTPUT FALLS 3.4 PCT.
    ROME, March 20 - Italian industrial production fell 3.4 pct
in January, compared with the same month last year, the
national statistics institute Istat said.
    The rise follows a year-on-year increase in December 1986
of 4.5 pct.
    Istat's industrial production index, base 1980, not
seasonally adjusted, registered 93.3, compared with 96.6 in
January 1986.
    Istat said there were 20 working days in January, the same
as December, but one fewer than January last year.
    Istat said the year-on-year fall reflected poorer
performances in the footwear, clothing, textiles, chemicals and
metals industries.
    It said office machinery and data sectors, wood and
furniture, precision mechanics, oil and electricity showed
improved activity.
    Calculations based on Istat figures showed industrial
production rose 2.4 pct in January, on a month-on-month basis,
after falling 12.0 pct in December over November.


.I 13130
.C
earn
.W
BERLINER BANK SUFFERS LOSSES ON STUTTGART LOANS.
    WEST BERLIN, March 20 - <Berliner Bank AG> has suffered
losses of between 10 and 100 mln marks through credits granted
by its Stuttgart branch by officials there exceeding their
powers, a bank spokesman said in answer to queries.
    The spokesman declined to say exactly how large the losses
were. Berliner Bank has suspended the three managers of its
Stuttgart branch and is continuing an investigation into the
case, in which state prosecutors are also participating.
    The fact that powers had been exceeded emerged in a routine
check at the branch. The City of West Berlin owns 74 pct of
Berliner Bank and the rest is held by small shareholders.


.I 13132
.C
crude
.W
REAGAN SAYS U.S. NEEDS TO LESSEN OIL IMPORTS.
    WASHINGTON, March 20 - President Reagan said the United
States must do more to lessen its reliance on imported oil.
    President Reagan said during a nationally televised news
conference that the rising U.S. reliance on foreign oil is a
problem that the administration is studying.
    "We have to study this more," Reagan said. "This is why we
increased the Strategic (Petroleum) Reserve, but we have to do
more," he said.
    Reagan said his administration has already proposed
deregulating natural gas and eliminating the windfall profits
tax on crude oil production.
    However, he complained that Congress had not yet approved
those measures.
    The Department of Energy earlier this week released a
report that warned of rising U.S. reliance on foreign oil
imports at a time when domestic production is declining. It
suggested options for the administration to consider, but made
no specific recommendations.


.I 13135
.C
money-fx;interest;
.W
BANK OF SPAIN SUSPENDS ASSISTANCE, DRAINS FUNDS.
    MADRID, March 20 - The Bank of Spain suspended its daily
money market assistance and offered to drain funds with three-
and seven-day repurchase agreements at 12-1/2 pct, money market
sources said.
    The sources said the measures were a further attempt to
rein in money supply and were likely to force some institutions
to scramble for funds before the 10-day accounting period for
reserve requirements closes on Monday.
    The bank, which raised its rate for ordinary overnight
assistance to 13-3/4 from 13-1/2 pct on Wednesday, opened its
special borrowing facility for overnight funds at 14-1/2 pct.
    Money market sources said institutions in need of funds
were likely to have to return to the bank tomorrow for further
assistance.
    The bank rarely invites applications for ordinary
assistance on a Saturday and the sources said it was more
likely to open its special borrowing facility again.


.I 13139
.C
crude
.W
TRICO <TRO> GETS CHINESE CONTRACT.
    LOS ANGELES, March 20 - Trico Industries Inc said it has
received a six mln dlr contract to supply hydraulic lift
equipment for heavy crude oil production for the Chinese
Ministry of Petroleum Industry.
    The company said the equipment is for use in the Laiohe
oilfield 350 miles northeast of Peking and will equip a
140-well program.


.I 13141
.C
earn
.W
MICRON TECHNOLOGY INC <DRAM> 2ND QTR MARCH FIVE.
    BOISE, March 20 -
    Shr loss 46 cts vs loss 51 cts
    Net loss 10.9 mln vs loss 9,782,818
    Revs 20.1 mln vs 9,437,270
    Avg shrs 23.5 mln vs 19.3 mln
    1st half
    Shr loss 90 cts vs loss 1.11 dlrs
    Net loss 20.6 mln vs 21.4 mln
    Revs 38.9 mln vs 14.5 mln
    Avg shrs 22.8 mln vs 19.2 mln


.I 13142
.C
earn
.W
BIOSEARCH MEDICAL PRODUCTS INC <BPMI> 4TH QTR.
    SOMERVILLE, N.J., March 20 -
    Shr loss seven cts vs loss 23 cts
    Net loss 381,000 vs loss 1,071,000
    Sales 4,531,000 vs 4,409,000
    Year
    Shr loss 21 cts vs loss 98 cts
    Net loss 1,098,000 vs loss 4,658,000
    Sales 17.8 mln vs 17.3 mln


.I 13143
.C
earn
.W
MOORE FINANCIAL GROUP INC <MFGI> SETS PAYOUT.
    BOISE, March 20 -
    Qtly div 30 cts vs 30 cts prior
    Pay April 16
    Record April Three


.I 13144
.C
ipi
.W
DUTCH JANUARY INDUSTRIAL PRODUCTION RISES 4.8 PCT.
    THE HAGUE, March 20 - Industrial production rose 4.8 pct on
a seasonally-adjusted basis in January compared with December
while rising 2.8 pct from January last year, Central Bureau of
Statistics figures show.
    In December, industrial production fell by 2.8 pct from
November while rising 2.9 pct compared with December 1985.
    The industrial production index, base 1980, stood at 109 in
January compared with a downward revised 104 in December, which
was initially put at 105. In January last year, the index stood
at 106 and in December 1985 at 101.


.I 13146
.C
oilseed;veg-oil;soybean;
.W
BONN EXPRESSES SUPPORT FOR U.S. ON EC VEG OIL TAX.
    HAMBURG, March 20 - The West German government expressed
support for the U.S. Position in opposing the proposed European
Community tax on vegetable oils and fats, a U.S. Embassy
spokesman said.
    The spokesman, speaking from Bonn, said, "We have good
reason to think West Germany holds to its resistance to the
proposed tax."
    Several top government officials told the American Soybean
Association and the National Soybean Processors Association
delegations there was no reason for American producers and
processors to pay for EC agriculture, the spokesman said.
    European agriculture was facing severe problems, but both
the Community and the U.S. Should work closely within the
framework provided by the General Agreement on Tariffs and
Trade, he said.
    The delegations will continue their top level meetings in
Bonn today but will not issue a statement before returning to
the U.S. At the weekend.
    The EC and the U.S. Realised the tax issue would stay on
the agenda for several months and there were indications that
both sides would have to prepare for some tough negotiations,
the spokesman said.


.I 13147
.C
trade
.W
SENATE WANTS JAPAN SEMICONDUCTER PACT ENFORCED.
    WASHINGTON, March 20 - The U.S. Senate has unanimously
called for President Reagan immediately to force Japan to live
up to a pledge to stop dumping its microchips and open its
markets to U.S. Chipmakers.
    The Senate voted 93 to 0 to urge Reagan to impose penalties
on Japanese high-technology products containing semiconductors
in retaliation for what it sees as Japan's violations of the
semiconductor pact.
    While the measure does not bind Reagan to any action,
Senate leaders said its adoption would warn Japan stiffer
legislation would be considered if the violations continue.
    "We want to send a message to Japan to let it know how the
Senate feels about this matter," Senate Democratic Leader Robert
Byrd told the Senate.
    Senate Finance Committee chairman Lloyd Bentsen told the
Senate the measure was not aimed at retaliation but at
correcting Japan's unfair trade practices.
    A key House trade lawmaker, Representative Richard Gephardt
also announced he would seek to force Japan and other countries
with huge trade surpluses to slash their surplus by 10 pct a
year for three years.


.I 13148
.C
acq
.W
FLEET <FLT> COULD FACE CONNECTICUT DIVESTITURE.
    PROVIDENCE, March 20 - Fleet Financial Group said it might
have to sell its First Connecticut Corp subsidiary as a result
of its proposed 1.3 billion dlr acquisition of Norstar Bancorp
<NOR>.
    Under Connecticut banking law, New England based bank
holding companies such as Fleet are not allowed to operate
Connecticut banks if they merge with companies from outside the
region.  Norstar is based in Albany, N.Y.
    First Connecticut has assets of about two billion dlrs. 
Fleet has total assets of about 21 billion dlrs.
    Fleet said it will seek to have the Connecticut law amended
to allow it to retain First Connecticut, which is based in
Hartford.
    Fleet's acquisition of Norstar is now expected to be
completed around July 1, 1988, when a change in laws in Fleet's
home state of Rhode Island allowing interstate banking outside
New England will go into effect.


.I 13149
.C
money-fx;trade;
.W
JAPAN UNDER ATTACK OVER TRADE SURPLUS.
    By Rich Miller, Reuters
    TOKYO, March 20 - Japan's economic policies face fierce
international attack as hopes fade of a substantial drop in its
trade surplus, international monetary sources said.
    At a meeting this week in Paris, senior government
officials from major nations are considering an Organisation
for Economic Cooperation and Development (OECD) staff report
that forecasts a continuing large Japanese trade surplus, they
said.
    Though Japanese exports have become more expensive with the
yen's sharp rise against the dollar, they still tend to surge
when growth picks up, according to the OECD.
    As a solution, the OECD staff has urged Japan to redirect
its export-driven economy, boosting domestic demand and imports
by adopting a more flexible fiscal policy, they said.
    That recommendation echoes calls made recently at secret
meetings of the International Monetary Fund's executive board.
    The monetary sources said Japan's policy was criticized
when the board met to consider the country's economy under the
annual consultations it holds with each of its members.
    The United States, which until recently has been reluctant
to criticize Japan's fiscal stance, joined in the attack, he
said.
    The IMF staff has also cast doubt on the Japanese
government's forecast of 3.5 pct economic growth in the fiscal
year beginning April 1. Most independent forecasters, including
the IMF, believe that growth in calendar 1987 will be below
three pct, monetary sources said.
    The Finance Ministry has been particularly sensitive to
such criticism because it is already under mounting domestic
pressure to boost an economy hard-hit by the yen's rise. The
yen's climb has lost exporters sales and profits in the huge
American market.
    Tokyo is also eager to avoid any suggestion that a further
yen rise might be needed to cut its trade surplus, which last
year amounted to a record 93 billion dlrs.
    Japan cannot tolerate a further rise of the yen, Foreign
Minister Tadashi Kuranari said recently. The yen closed here
today at 151.53 to the dollar. Most Japanese politicians,
including Finance Minister Kiichi Miyazawa, are clearly hoping
the yen will weaken, government officials said.
    At a meeting in Paris last month, Britain, Canada, France,
Japan, the United States and West Germany, agreed to cooperate
to hold currencies at around current levels.
    Officials said that wording represented a compromise.
Miyazawa hopes the agreement will hold the yen stable for a few
months, before it weakens later in the year.
    Japan wanted the Paris communique to imply a higher value
for the dollar, perhaps by substituting the word "recent" for
"current," while the United States wanted it to more clearly
point to the dollar's weaker levels now, perhaps by use of the
word "present," they said.
    In the months leading up the February 22 agreement, the
dollar dropped some 10 yen.
    The officials also sought to discredit suggestions in the
market that recent U.S. Action to prevent the dollar from
rising above 1.87 marks pointed to a 153 to 155 yen ceiling for
the U.S. Currency.
    Japan has also attacked OECD forecasts, which it says do
not take account of the structural changes in the Japanese
economy that will be triggered by the strong yen.
    Officials said there are already signs of that. More and
more companies have announced plans to move production
facilities offshore to take advantage of cheaper costs abroad,
they said.


.I 13150
.C
gold
.W
GEODOME <GOEDF> TO START MINE CONSTRUCTION.
    HAILEY, Idaho, March 20 - Geodome Resources Ltd said
following receipt of a feasibility study from Raytheon Co's
<RTN> Stearns Catalytic unit, it will proceed with construction
and pre-production stripping at its Sunbeam Mine in Custer
County, Idaho, as quickly as possible.
    The company said the study found proven ore reserves of
3,302,000 short tons grading 0.077 ounce of gold per ton.  It
said the mine will operate at a rate of 626,000 tons of ore per
year, with higher-grade ore being mined in the first three
years for a rapid payback of capital costs.
    The company said the feasibility study calls for gold
production averaging 41,000 ounces a year for the life of the
mine and 50,000 ounces a year over the first three years, with
99,000 ounces of silver per year being produced over the miune
life.
    Capital costs would be 22.3 mln dlrs with all-new equipment
and 500,000 to one mln dlrs less with used equipment, it said. 
It said the mine would be operated by a contract miner but the
associated mill by Geodome.
    Geodome said a new ore zone discovered last summer is not
included in reserve calculations. It said eight of the nine
holes drilled there have an average grade of 0.046 ounce of
gold and 2.1 ounces of silver per ton. Also excluded are
reserves of 1,400,000 tons of low-grade material that could be
milled profitably at 425 dlrs a ton for gold. The feasibility
study used a 350 dlr gold price.
    Geodome said operating costs of the mine will average 201
dlr per ounce of gold for the mine life and 171 dlrs for the
first three years, in constant dollars.


.I 13152
.C
earn
.W
M.D.C. ASSET INVESTORS <MIR> IN INITIAL PAYOUT.
    DENVER, March 20 - M.D.C. Asset Investors Inc, which
recently went public, said its board declared an initial
quarterly dividend of 45 cts per share, payable April 15 to
holders of record April One.


.I 13153
.C
trade
.W
JAPAN SAYS OECD STUDY ON SUBSIDIES STILL ONGOING.
    TOKYO, March 20 - Japanese Agriculture Ministry officials
said a study of agriculture subsidies by the Organisation for
Economic Cooperation and Development, OECD, is still under way
and will be completed sometime next month.
    The officials said the study has been inaccurate so far,
and they said Japan would comment on the final results.
    A Reuter report from Washington yesterday said the study
has found that Japan has the highest agriculture subsidies in
the world and that dairy farmers benefit more than any other
commodity producers from subsidies. The study has not been
officially released due to objections from some countries.
    Japan has withdrawn its objection and decided to accept the
release of the study, the agriculture ministry officials said.
OECD directors are expected to approve the release at a meeting
in mid-May.
    One agriculture ministry source said the study so far was
based on the years 1979-81. Japanese subsidies have dropped
sharply since then, partly because of tight budgetary policy,
and foreign currency factors have also changed, he said.
    "The study is ... Unfair and unacceptable because it does
not take account of various differences in farming conditions
in each country, such as geography," the source said.
    He said it is highly likely that the final study will show
Japan has the highest farm subsidies in the world.
    "This would increase foreign pressure to open Japan's farm
market further, but this would have little impact on Japan's
agriculture policy," he said, without giving further details.
    A main purpose of the study is to clarify export subsidies
by major exporting nations like the United States and the
European Community, but Japan is a major importer, he said.


.I 13154
.C
bop;trade;
.W
VOLCKER SAYS TRADE DEFICIT IS MAJOR CHALLENGE.
    JACKSONVILLE, Fla., March 20 - Federal Reserve Board
Chairman Paul Volcker said the U.S. Trade deficit is a
challenge for the U.S. Equal to the Soviet Union launching of
Sputnik.
    "The international challenge implicit in our huge trade
deficit has become the 1980s equivalent to the launch of
Sputnik by the Russians in the 1950s, when we suddenly feared
we were to be left in the wake of Soviet technological
achievement," he said in an address to Florida educators.
     He said the trade problem underscored the need to reform
the U.S. Educational system to improve economic performance.
    The Commerce Department reported last week that the
nation's trade gap, calculated on a balance-of-payments basis,
swelled to a record 38.37 billion dlrs in the fourth quarter,
bringing the 1986 deficit to a record 147.71 billion dlrs.
    Volcker called on educators to stress the development of
basic reading, writing and mathematics skills and urged them to
help students adapt to the fast-changing economic climate.
    Volcker said the challenge was greatest in the education of
low-income minority groups such as blacks and Hispanics.
           


.I 13155
.C
earn
.W
(CORRECTED)-MICROPRO INTERNATIONAL CORP <MPRO> NET.
    SAN RAFAEL, Calif., March 20 - 2nd qtr
    Shr four cts vs seven cts
    Net 500,000 vs 900,000
    Revs 9,200,000 vs 10.5 mln
    1st half
    Shr four cts vs 12 cts
    Net 600,000 vs 1,500,000
    Revs 17.6 mln vs 20.8 mln
    NOTE: Period ended February 28.
    Company corrects period in March 19 item


.I 13156
.C
acq
.W
C.O.M.B. <CMCO> TO ACQUIRE REST OF CABLE VALUE.
    PLYMOUTH, Minn., March 20 - C.O.M.B. Co said its board has
approved a proposal to acquire the 50 pct of Cable Value
Network held by its cable television industry partners in
exchange for warrants for C.O.M.B. common.
    The company, which already owns the other 50 pct of CVN,
said it plans to change its name to CVN.
    C.O.M.B. said the proposal calls for its cable partners to
receive about eight mln five year warrants in exchange for
their 50 pct interest in CVN and commit to a long-term
affiliation agreement to carry CVN programming.
    C.O.M.B. said the proposed warrants would carry an exercise
price of 18.125 dlrs a share.
    It said the 7,869,353 warrants originally offered to cable
partners will continue to vest on the pre-agreed schedule. The
company now has about 18.1 mln shares outstanding.
    C.O.M.B. said the transaction is subject to the parties
entering into an agreement which would be subject to approval
by its shareholders and regulatory agencies.


.I 13157
.C
earn
.W
HOME SAVINGS DURHAM <HSLD> SETS STOCK DIVIDEND.
    DURHAM, N.C., March 20 - Home Savings and Loan Association
Inc of Durham, N.C., said its board declared a 20 pct stock
dividend, payable April 28 to holders of record April Three.


.I 13158
.C
acq
.W
******TWA IN LEGAL STIPULATION NOT TO PURSUE THE ACQUISITION OF USAIR.
Blah blah blah.

.I 13159
.C
interest
.W
****** Top discount rate at U.K. Bill tender falls to 9.1250 pct.
Blah blah blah.

.I 13160
.C
crude
.W
CANADA NORTHWEST TO SELL PREFERRED SHARES.
    CALGARY, Alberta, March 20 - <Canada Northwest Energy Ltd>
said it reached agreement in principle to sell one mln
preferred shares by way of private placement to raise 32.5 mln
dlrs for oil and gas exploration.
    The 5.4 pct cumulative redeemable convertible series D
preferred shares will be flow-through shares entitling holders
to tax deductions not claimed by the company.
    The shares will be convertible anytime after issue into
common shares at an equivalent conversion price of 32.50 dlrs a
share. After one year, they will be redeemable at any time by
the company at 25 dlrs a share plus accrued dividends.



.I 13161
.C
iron-steel;cotton;trade;
.W
INDIA, AUSTRALIA AGREE TO IMPROVE TWO-WAY TRADE.
    NEW DELHI, March 20 - Indian and Australian businessmen
signed a memorandum of understanding to boost two-way trade and
joint industrial ventures in both countries, spokesmen of the
Indo-Australia Business Council told reporters.
    The Indian Council said it hoped India's exports to
Australia would improve in the next few months and reduce the
trade balance which is heavily in Australia's favour.
    In 1986 Australia sold 428 mln Australian dlrs' worth of
goods, including steel and coking coal, to India and bought
170.5 mln worth of items, including cotton textiles, from India.


.I 13162
.C
acq
.W
******OHIO EDISON SELLS 30 PCT OF NUCLEAR INTEREST FOR 509 MLN DLRS.
Blah blah blah.

.I 13163
.C
ship
.W
HIGH WINDS KEEP VESSELS TRAPPED IN BALTIC ICE.
    HELSINKI, March 20 - Strong south-easterly winds were
keeping many vessels trapped in the ice off the Finnish and
Swedish coasts in one of the worst icy periods in the Baltic
for many years, the Finnish Board of Navigation said.
    In Finland and Sweden up to 50 vessels were reported to be
stuck in the ice, and even the largest of the assisting
icebreakers were having difficulties in breaking through to the
stranded ships, coastguard officials said.
    However, icy conditions in the southern Baltic at the
Soviet oil ports of Ventspils and Klaipeda had eased, they said.
    Weather officials in neighbouring Sweden said the icy
conditions in the Baltic were the worst for 30 years, with
ships fighting a losing battle to keep moving.
    In the coastal stretches of the Gulf of Bothnia, which
divides Finland and Sweden, the ice is up to one metre thick,
with drifts and currents packing it into almost impenetrable
walls three metres high, Swedish coastguard officials said.
    Weather forecasts say winds may ease during the weekend but
a further drop in temperature could bring shipping to a
standstill, the officials said.


.I 13164
.C
trade
.W
EC AND COMECON ENDS TALKS WITH PROGRESS.
    By Stephanie Nebehay, Reuters
    GENEVA, March 20 - The European Community (EC) and
Soviet-led Comecon ended talks here, having made progress on
setting up formal trade relations, but no breakthrough because
of Comecon's refusal to recognise West Berlin as part of the
EC, delegates said.
    Negotiators were trying to reach agreement on the draft of
a joint declaration setting up official relations after 30
years of mutual non-recognition. John Maslen, head of the EC
delegation, told Reuters as he emerged from the final session:
"We made some progress, but we have called for another meeting."
    Officials, who asked not to be named, said the Comecon team
had refused to accept a clause in the draft declaration which
would recognise West Berlin as part of the 12-nation EC.
    Under the 1957 Treaty of Rome all contracts and agreements
signed by the Community must contain this territorial clause
stipulating West Berlin is an integral part of the EC. An EC
negotiator taking part in the three-day talks said: "We wanted
the territorial clause in, but Comecon said no."
    A joint statement issued after the talks said progress was
made towards clarifying positions, but another meeting would be
necessary to complete the work.
    Any decision in principle to set up relations would require
approval by the Community's Council of Ministers and by the
executive committee of Comecon.
    Zdzislaw Kuroski, deputy director of Comecon, who heads the
East bloc delegation, told Reuters ahead of today's session: "We
have narrowed our differences on a range of questions, but not
on all questions."
    Asked whether Comecon would accept EC insistence that any
joint declaration stipulate West Berlin as part of the
Community, he replied: "This question is not contained in the
draft which our side presented."
    West German diplomats said they would insist on including
the clause on West Berlin in any EC-Comecon agreement.
    The talks followed an earlier round between the two trading
blocs here last September and the first-ever direct talks
between the EC and the Soviet Union on establishing diplomatic
relations in January.
    The EC trades with individual Comecon member states despite
non-recognition of Comecon. Last year, the EC had a five
billion dlr trade deficit with East European states, about half
the deficit of the previous year, due to a drop in the price of
Soviet oil imported by the EC.


.I 13165
.C
acq
.W
OHIO EDISON <OEC> SELLS 30 PCT OF NUCLEAR INTEREST.
    AKRON, Ohio, March 20 - Ohio Edison Co said it has
completed the sale and leaseback of 30 pct of its 30 pct
interest in Unit One of the Perry Nuclear Power Plant,
receiving 509 mln dlrs for the interest.
    The utility said the share of its interest in the 1,205
megawatt generating plant was sold to a group of institutional
investors which leased it back to the company for a period of
about 29 years at a negotiated lease payment rate.
    Ohio Edison said the proceeds will be used to finance the
rest of its 1987 construction program and repay bank loans
incurred for the retirement of high-interest long-term debt.
    Ohio Edison did not detail the lease payments, but it said
the "payments will reduce the amount of revenue the company
will need to cover our investment in Perry, which translates
into savings for our customers."
    The utility said it projects the financing could reduce the
amount of annual revenue needed by about 20 mln dlrs. It plans
on filing a rate application with the Public Utilities
Commission of Ohio to recover the Perry costs later this year.
    It said the sale and leaseback was attractive to the
investors because they could take quicker advantage of tax
benefits than the utility could.


.I 13166
.C
gold;silver;
.W
GEODOME SETS IDAHO GOLD/SILVER MINE CONSTRUCTION.
    HAILEY, Idaho, March 20 - Geodome Resources Ltd said
following receipt of a feasibility study from Raytheon Co's
Stearns Catalytic unit it will proceed with construction and
pre-production stripping at its Sunbeam Mine in Custer County,
Idaho, as quickly as possible.
    The company said the study found proven ore reserves of
3,302,000 short tons grading 0.077 ounce of gold per ton. It
said the mine will operate at a rate of 626,000 tons of ore per
year, with higher-grade ore being mined in the first three
years for a rapid payback of capital costs.
    It said the feasibility study calls for gold production
averaging 41,000 ounces a year for the life of the mine and
50,000 ounces a year over the first three years, with 99,000
ounces of silver per year being produced over the mine life.
    Capital costs would be 22.3 mln dlrs with all-new equipment
and 500,000 to one mln dlrs less with used equipment, the firm
said. It said the mine would be operated by a contract miner
but the associated mill by Geodome.
    Geodome said a new ore zone discovered last summer is not
included in reserve calculations. It said eight of the nine
holes drilled there have an average grade of 0.046 ounce of
gold and 2.1 ounces of silver per ton.
    Also excluded are reserves of 1,400,000 tons of low-grade
material that could be milled profitably at 425 dlrs a ton for
gold. The feasibility study used a 350 dlr gold price.
    Geodome said operating costs of the mine will average 201
dlr per ounce of gold for the mine life and 171 dlrs for the
first three years, in constant dollars.


.I 13168
.C
earn
.W
STANLEY INTERIORS <STHF> SAYS RESULTS REDUCED.
    STANLEYTOWN, Va., March 20 - Stanley Interiors Corp said
its first quarter shipments and operating income were lower
than expected due to snowstorms in January and February that
forced the closing of some of its manufacturing facilities for
up to six days.
    Stanley said, however, that any reduction in first quarter
operating income will be offset by reduced interest expense and
that first quarter net income will be about flat with first
quarter 1986 net income of 14 cts a share, or 286,000 dlrs.
    Stanely also said the first quarter's sales losses would be
made up by shipments in the second quarter.


.I 13171
.C
acq
.W
TWA <TWA> IN COURT SETTLEMENT WITH USAIR <U>.
    NEW YORK, March 20 - Trans World Airlines Inc said it
reached an agreement yesterday in federal court with USAir
Group Inc that prevents TWA from buying additional shares of
USAir.
    Under the agreement, TWA, which holds about 15 pct of USAir
stock, will not buy more USAir shares before April 23 and will
not do so after that date without giving 14 days notice to
USAir.
    TWA also agreed that it would not knowingly and willingly
interfere with the consummation of the merger between USAir and
Piedmont Aviation Inc <PIE>.
    TWA said the court agreement confirms previous
announcements by the company, in filings with the Securities
and Exchange Commission, that it does not presently intend to
seek control of USAir or to acquire additional common stock.
    As a result of the agreement, the court removed a previous
temporary restraining order against TWA, the company said.
    TWA and USAir have also agreed that all litigation between
them in Pittsburgh and Delaware will be stayed until April 23.
TWA said the agreement does not prevent it from commenting to
regulatory agencies on the USAir, Piedmont merger.
    In a separate statement, USAir said the agreement also
included a provision that all USAir shares currently owned by
TWA and its chairman, Carl Icahn, will be voted through a
voting trust in proportion to the votes of other shares not
controlled by TWA or Icahn.


.I 13173
.C
money-fx;interest;
.W
U.K. MONEY MARKET GETS 186 MLN STG AFTERNOON HELP.
    LONDON, March 20 - The Bank of England said it had given
the money market a further 186 mln stg assistance in the
afternoon session. This brings the Bank's total help so far
today to 945 mln stg and compares with its revised forecast of
a one billion stg deficit.
    The central bank bought bank bills outright comprising 51
mln stg in band one at 9-7/8 pct and 135 mln stg in band two at
9-13/16 pct.


.I 13178
.C
earn
.W
CRI INSURED MORTGAGE INVESTMENTS LP <CRM> PAYOUT.
    ROCKVILLE, Md., March 20 -
    Mthly div 16-1/2 cts vs 16-1/2 cts prior
    Pay May 15
    Record March 31


.I 13180
.C
acq
.W
AMERICAN MOTORS <AMO> BOARD MEETING ON TAKEOVER.
    DETROIT, March 20 - American Motors Corp's board of
directors is meeting this morning in New York to consider
Chrysler Corp's <C> 1.5 billion dlr takeover offer, an American
Motors spokesman said.
    The spokesman reiterated statements made earlier in the
week that the regularly scheduled meeting was being held.
    The spokesman would not comment on recurring speculation
that the board might receive a higher offer from Chrysler.
Analysts have said the fact that American Motors' stock has
remained above the four dlrs a share Chrysler offer could lead
the larger company to raise its bid.
    The American Motors spokesman said he had not seen any
indication that a higher offer would be received from Chrysler,
although he added, "I don't know what the conversation is in
the meeting."
    He repeated statements made earlier in the week by the
automaker that today's meeting will probably not result in a
final decision on the Chrysler bid.
    "The board first apprised the proposal on the 11th (of
March). I suspect there will be several more (meetings) after
this," the spokesman said.
    The meeting is expected to go through early afternoon.


.I 13183
.C
bop;trade;
.W
KEATING SEES LOWER AUSTRALIAN CURRENT DEFICIT.
    SYDNEY, March 20 - Australian Treasurer Paul Keating said
he expects the country's 1986/87 current account deficit to be
one billion dlrs lower than the 14.7 billion forecast in the
August budget. Keating told a financiers' dinner that
February's 750 mln dlr deficit, against January's 1.23 billion,
was "in the groove" of the government's expectations.
    "We will probably bring the current account this year under
14 billion, I think, which will probably be about a billion
dollars less than we forecast in the budget," Keating said. "I am
sure we will see a lower current account deficit for next year
... And a fall as proportion of GDP."
    Australia posted a 13.82 billion dlr current account
deficit in 1985/86 and Keating said the latest monthly figures
showed an encouraging trend.
    Keating said the government would maintain responsible
economic management regardless of whether it was drawn into an
election, because it would take time to stabilise Australia's
80 billion dlr foreign debt.
    "We have to build the import competing sector back," he said.
"We are now trying to rebuild our capital structure. We are
trying to rebuild the culture of productivity and
manufacturing."
    Keating said the foundation for a transition of the economy
had been laid with the floating of the Australian dollar and
continued with wage restraint and deregulation.
    The Government would follow with spending cuts in its
economic statement on May 14, he said.


.I 13190
.C
money-fx
.W
TREASURY'S BAKER SUPPORTS FED MONETARY POLICY.
    WASHINGTON, March 20 - Treasury Secretary James Baker said
in a newspaper interview that he supports the current course of
Federal Reserve Board monetary policy.
    "The course of Fed policy is quite adequate as far as we are
concerned," Baker said in an interview with the New York Times.
    In the interview, Baker declined to comment about the
recent Paris accord among the six leading industrialized
democracies when he was asked why the U.S. agreed to stabilize
the dollar at current levels when the trade deficit hit a
record level last year.
    Baker said in the newspaper interview that it was "a subject
I prefer not to talk about."
    He said that if he explained why the U.S. agreed to help
maintain the dollar at current levels "I would of necessity end
up getting into some of the private agreements that support
such and agreement" on the dollar.
    Baker was optimistic about Brazil, which has stopped
interest payments on much of its outstanding debt with foreign
commercial banks.
    "They are, after all, paying on time all the debt service
and principal on their official debts, having just rescheduled
with the Paris Club," Baker said in the newspaper interview.
    Baker said that Brazilian repreentatives had explained they
intented to pay their commercial bank debts in full but needed
time.


.I 13191
.C
acq
.W
UNIVERSAL RESOURCES <UVR> TO VOTE ON MERGER.
    DALLAS, Texas, March 20 - Universal Resources Corp said it
is holding a special shareholders meeting this morning to vote
on the previously-proposed merger between it and Questar Corp
<STR>.
    Universal, whose stock was delayed this morning on the
American Stock Exchange, said it will release a statement later
in the day on the vote.


.I 13192
.C
gas
.W
SONEX RESEARCH <SONX> CUSTOM AUTO USES MORE GAS.
    ANNAPOLIS, Md., March 20 - Sonex Research Inc said its
modified 1986 British Ford Escort passed the European emissions
test, but reported the engine consumed 35 pct more fuel than
the stock engine.
    Sonex said its engine is not equipped with a catalytic
converter and does not use exhaust gas recirculation or an
emission air pump. It said the company expected to realize a
reduced fuel economy, but is working on improving fuel
consumption.
    The company said after it installs the new fuel system, it
will retest the automobile.
    In a separate announcement, the company said it received
confirmation from the European Patent Office that Sonex
successfully defended its BETA European Patent from a
competitor.


.I 13193
.C
acq
.W
LOUISIANA PACIFIC <LPX> BUYS OREGON SAWMILL.
    PORTLAND, Ore., March 20 - Louisiana Pacific Corp has
agreed to pay 3,475,000 dlrs for the bankrupt Harris Pine
Sawmill in Pendleton, Ore., the mill's bankruptcy trustee said.
    Louisiana Pacific refused to indicate whether it would
repoen the lumber mill which was closed after the sawmill owned
by the Seventh Day Adventist Church filed a bankruptcy petition
in Portland federal court in December.
    The trustee said the company outbid WTD Industries Inc for
the lumber mill, harvested logs and contracts to harvest timber
in the national forest. It outbidhell bankruptcy trustee said.
   


.I 13194
.C
earn
.W
INTERNATIONAL PAGURIAN HAS FIVE MONTH PROFIT.
    TORONTO, March 20 - <International Pagurian Corp Ltd> said
it had net profit of 3.3 mln dlrs or three cts a share for the
period August 15 to December 31, 1986, based on 55.2 mln shares
outstanding.
    Revenues for the full year ended December 31, 1986 were 5.5
mln dlrs and net assets at year end were 317.5 mln dlrs.
    The company did not disclose earnings for the 1986 period
before August 15 or prior year results. A company spokesman
said prior results were not comparable due to its August 15
issue of 30 mln common shares.


.I 13195
.C
money-supply
.W
S. AFRICAN M-3 MONEY GROWTH SLOWS IN JANUARY.
    PRETORIA, March 20 - South African year-on-year broadly
defined M-3 money supply growth slowed to 8.62 pct in January
from 9.32 pct in December, Reserve Bank figures show.
    M-3 fell to 77.98 billion rand in January from 79.31
billion in December, while preliminary February figures show
M-3 at 79.42 billion rand for a year-on-year rise of 10.63 pct.
    M-2 showed a rise of 5.09 pct for January at 55.68 billion
rand after 4.30 pct in December, M-1 16.72 pct at 5.12 billion
after 12.80 pct and M-1A 22.79 pct at 14.30 billion rand after
20.54 pct.


.I 13197
.C
earn
.W
COMPUSCAN INC <CSCN> 3RD QTR FEB 28 NET.
    FAIRFIELD, N.J., March 20 -
    Shr loss eight cts vs loss 20 cts
    Net loss 469,000 vs loss 1,104,000
    Revs 3,093,000 vs 3,056,000
    Nine mths
    Shr loss 19 cts vs loss 29 cts
    Net loss 1,098,000 vs 1,646,000
    Revs 9,562,000 vs 12.2 mln


.I 13199
.C
acq
.W
FIRST FEDERAL <FFBN> MERGING INTO BANKEAST <BENH>.
    NASHUA, N.H., March 20 - First Federal Bank FSB said it has
entered into a letter of intent to merge into BankEast Corp for
60 dlrs per First Federal share in BankEast common stock.
    First Federal said, subject to certain adjustments,
including First Federal's earnings prior to the close of the
deal, each share of its common stock shall not be converted
into less than 2.9 shares or more than 3.5 shares of BankEast
common.
    First Federal said the proposed move is also subject to
execution of a definitive agreement, regulatory approval and
the approval of First Federal shareholders.


.I 13200
.C
acq
.W
ILLINOIS TOOL WORKS <ITW> SELLS TWO DIVISIONS.
    CHICAGO, March 20 - Illinois Tool Works Inc said it
completed the sale of its Drill and End Mill division, Pine
Bluff, Arkansas and Eclipse Counterbore division, Detroit, to
newly-formed Eclipse Industrial Pruducts Inc, based in St.
Louis.  Terms were not disclosed.
    All employees at both locations will be retained, it added.


.I 13202
.C
earn
.W
NATIONAL PATENT DEVELOPMENT CORP <NPD> IN PAYOUT.
    NEW YORK, March 20 -
    Qtly div 2-1/2 cts vs 2-1/2 cts prior
    Pay May One
    Record April One


.I 13203
.C
earn
.W
THOMPSON MEDICAL CO INC <TM> SETS QUARTERLY.
    NEW YORK, March 20 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 15
    Record March 30


.I 13205
.C
crude
.W
GULF CANADA <GOC> ASSERTS NO DAMAGE FROM SPILL.
    Calgary, Alberta, March 20 - Gulf Canada Corp said a
discharge of material at its Amauligak drilling site in the
Beaufort Sea caused no danger to the environment.
    Yesterday, the federal department of energy charged Gulf
Canada with eight counts of illegal dumping for discharging
powdered cement and drilling mud between September 23 and 30
last year.
    The charges carry a maximum 50,000 dlr fine on each count.
    Gulf said the government's charges relate to discharging
materials without a permit, not to environmental damage
resulting from the action.
    Gulf said it voluntarily informed appropriate government
officials when the material was discharged.
    The company also said none of the material was discharged
within 12 miles of the closest shoreline. It added that one of
the materials cited, barite, is a naturally occurring mineral
routinely discharged into the sea during drilling operations.


.I 13207
.C
earn
.W
METALLGESELLSCHAFT AG <METG.F>.
    FRANKFURT, March 20 - Year to September 30, 1986
    Domestic group net profit 69.9 mln marks vs 61.4 mln.
    Parent net profit 53.6 mln vs 43.8 mln.
    Dividend six marks vs same.
    Parent payment to disclosed reserves 20 mln vs 15 mln.


.I 13209
.C
earn
.W
PUBCO <PUBO> DECLARES DIVIDEND RIGHT.
    CLEVELAND, March 20 - Pubco Corp said its board declared a
dividend distribution of one common stock purchase right on
each outstanding share of Pubco's common stock.
    It said each right will entitle shareholders to buy one
share of common stock at an exercise price of three dlrs.
    The rights will be exercisable only if a person or group
acquires 20 pct or more of Pubco's common stock or announces a
tender which would result in ownership by a person or group of
20 pct or more of the common stock, the company said.
    Pubco said it will be entitled to redeem the rights at 0.1
cts per right at any time before a 20 pct position has been
acquired and afterward in certain circumstances. It said the
exercise price will be substantially reduced in the event of an
acquisition of 25 pct or more of common stock.
    If Pubco is acquired in a merger or other transaction, each
right will entitle its holder to purchase, at the right's
then-current exercise price, a number of the acquiring
company's common shares having a market value at that time of
twice the right's exercise price, the company said.
    The dividend distribution will be made March 31, 1987,
payable to shareholders of record on that date. The rights will
expire ten years later on March 31, 1987, the company said.
    Pubco said the rights are not being distributed in response
to any specific effort to change control of Pubco, and the
board is not aware of any such effort.


.I 13211
.C
earn
.W
TECH DATA <TECD> SETS THREE FOR TWO SPLIT.
    CLEARWATER, Fla., March 20 - Tech Data Corp said its board
declared a three-for-two stock split, payable April 30 to
holders of record April 1.


.I 13214
.C
acq
.W
VERTEX <VETX> TO BUY COMPUTER TRANSCEIVER STAKE.
    CLIFTON, N.J., March 20 - Vertex Industries Inc and
<Computer Transceiver Systems Inc> jointly announced an
agreement for Vertex to acquire a 60 pct interest in Computer
after it completes a proposed reorganization.
    Computer has been in reorganization proceedings under
chapter 11 since September 1986.
    The companies said the agreement would allow Computer's
unsecured creditors and debenture holders to receive new stock
in exchange for exsiting debt, and for shareholders to receive
one new share of Computer's stock for each four shares
previously held.
   
    The companies said the United States Bankruptcy court for
the Southern District of New York has given preliminary
approval for the proposal, which is subject to formal approval
by Computer's creditors and the court.
    Under the agreement, Vertex also said it would supply
Computer with 250,000 dlrs of operating funds, and arrange
renegotiation of its secured bank debt, among other things.


.I 13215
.C
earn
.W
RENT-A-CENTER <RENT> VOTES 3 FOR 2 SPLIT.
    WICHITA, KAN., March 20 - Rent-A-Center Inc said its
directors approved a three-for-two stock split payable April
20, record April 3.


.I 13217
.C
earn
.W
USACAFES <USF> SETS HIGHER DIVIDEND.
     DALLAS, March 20 - USACafes LP said its board declared a
quarterly dividend of 20 cts per unit -- its first since
converting to a limited partnership.
    The company, as USACafes Inc, had paid a quarterly dividend
of nine cts per share.
    It said the restructuring as a partnership has
substantially increased the cash available for distribution to
unitholders, as it had predicted.


.I 13219
.C
acq
.W
COOPER CANADA SAID IT RECEIVED TAKEOVER OFFERS.
    Toronto, March 20 - <Cooper Canada Ltd> said it has
received takeover offers from "a number of companies."
    The company also said that "discussions are continuing, but
no definitive arrangements have been made."
    It gave no further details.


.I 13221
.C
oilseed;grain;corn;soybean;
.W
U.S. GRAIN ANALYSTS SEE LOWER CORN, SOY PLANTING.
    CHICAGO, March 20 - Grain analysts surveyed by the American
Soybean Association, ASA, projected acreage this year at 59.1
mln acres of soybeans and 64.7 mln acres of corn.
    In 1986, farmers planted 61.5 mln acres of soybeans and
76.7 mln acres of corn, according to the February 9 USDA
supply/demand report. The USDA is to release its 1987 planting
intentions report March 31.
    The survey included 15 soybean estimates and 13 corn
estimates and was released in the March 16 Soybean Update
newsletter sent to members.
    Estimates ranged from 56.0 mln to 63.0 mln acres of
soybeans and 59.5 mln to 68.0 mln acres of corn.
    An ASA spokesman said the association plans no survey of
farmers' planting intentions this year.


.I 13223
.C
earn
.W
FREEPORT-MCMORAN OIL AND GAS <FMR> PAYOUT RISES.
    HOUSTON, March 20 -
    Mthly div 14.248 cts vs 4.912 cts prior
    Pay April 10
    Record March 31


.I 13225
.C
acq
.W
ILLINOIS REGIONAL <ILLR> MULLS AFFILIATION.
    ELMHURST, ILL., March 20 - Illinois Regional Bancorp said
it is evaluating whether to affiliate with a larger bank
holding company or continue to remain independent.
    The 500 mln dlr-asset bank holding company said that in
view of recent investor interest in suburban Chicago banks, it
retained Merrill Lynch Capital markets to advise it on its
alternatives.
    Last year, Illinois Regional had discussions with
Milwaukee-based Marine Corp <MCRP> but no agreement was
reached, a company spokesman said.


.I 13228
.C
earn
.W
SHELDAHL <SHEL> VOTES THREE-FOR-TWO STOCK SPLIT.
    NORTHFIELD, MINN., March 20 - Sheldahl Inc said its
directors approved a three-for-two stock split, payable April
24, record April 3.


.I 13230
.C
earn
.W
RUSS TOGS INC <RTS> SETS QUARTERLY.
    NEW YORK, March 20 -
    Qtly div 19 cts vs 19 cts prior
    Pay April 15
    Record April One


.I 13231
.C
money-fx
.W
BANK OF FINLAND TO TRADE IN BANKS' CERTIFICATES.
    HELSINKI, March 20 - The Bank of Finland said it has
started dealings in banks' certificates of deposits (CDs) with
immediate effect and that it was prepared to issue its own
paper to stimulate operations on the domestic money market.
    Bank of Finland Governor Rolf Kullberg told a news
conference the Bank will also limit credits on the call money
market from March 30, 1987, by introducing a maximum credit
amount and a penalty rate if banks exceed this ceiling.
    "The recent introduction of three-month money and these new
regulations are decreasing the role of the call money market
and the discount rate as monetary instruments," Kullberg said.
    Bankers welcomed the central bank measures saying these
were needed to accelerate the domestic money market. The Bank
of Finland had never before been allowed to issue its own CDs,
they said.
    "The central bank for the first time has an instrument with
which it really can influence the price of money in this
country," one banker said.
    Under the new rules banks are limited to call money credits
to a maximum of 7.5 pct of the total of their equity capital
and cash reserves. A penalty rate of interest of 19 pct is now
introduced if the limit is exceeded.
    Director Sixten Korkman at the Bank of Finland's monetary
department said he expected the bank to pursue an active policy
on the interbank market as an issuer of own-CDs.
    "We are free to do it, so maybe on Monday we will issue the
first, just to see how the system functions. Overall I think we
will issue at least a few times a week," Korkman told Reuters.
    He said the bank was likely to aim at CDs with a
three-month maturity at first as the market was best developed
for paper of that maturity.
    The Bank of Finland introduced last December three-month
credits and deposits at rates determined by the central bank
and the commercial banks as a shift away from the traditional
overnight call money market.
    Liquidity on the call credit market has fallen from around
nine billion markka in early December to 167 mln last week,
while three-month credits have risen to three to four billion.
    On the interbank market there has been an increasing trade
in banks' CDs, estimated to be some eight billion markka. In
addition, commercial paper accounts for around five billion
markka and Treasury Bills two billion.


.I 13236
.C
acq
.W
CARTERET SAVINGS<CBC> COMPLETES SALE OF BRANCHES.
    MORRISTOWN, N.J., March 20 - Carteret Savings Bank said it
has completed the previously announced sale of six Virginia
branches to Charter Federal Savings and Loan Association
<CHFD>.
    Carteret said it has opened a retail banking office in
Vienna, Va., as the next step in its move to build a strong
presence in the Washington, D.C., Baltimore, Md., area.
    Carteret said the new bank has two offices outside
Baltimore, which were acquired last June when Carteret merged
with Admiral Builders Savings and Loan Association.
    The company said it plans to open a retail banking office
in downtown Washington this summer, plus several more offices
in Baltimore County and others in Fairfax County, Va. Carteret
said it may open more loan offices in Virginia and Maryland.


.I 13237
.C
money-fx;interest;
.W
FED EXPECTED TO SET CUSTOMER REPURCHASES.
    NEW YORK, March 20 - The Federal Reserve is expected to
intervene in the government securities market to add temporary
reserves indirectly via 1.5-2.0 billion dlrs of customer
repurchase agreements, economists said.
    Federal funds, which averaged 6.06 pct yesterday, opened at
6-1/16 pct and remained there in early trading.


.I 13243
.C
earn
.W
MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION.
    NEW YORK, MARCH 20 - The stock of McDonald's Corp rose
sharply this morning after analyst Daniel Lee of Drexel Burnham
Lambert Inc reiterated his recommendation of the stock, traders
said.
    McDonald's, an operator of fast food restaurants, rose
1-5/8 to 77-3/8.
    "Comparable store sales are up 5.6 pct in 1986 vs 1985,"
Lee said, "and the stock is trading below the market multiple."
He said "not many companies have a consistent 15 pct annual
earnings growth rate, return on equity above 20 pct, but trade
at less than the market multiple."
    Analyst Lee said "the introduction of a new line of salads
this spring, at about the time we are all trying to squeeze
into bathing suits, should boost sales."
    He also noted that "the average McDonald's does about 1.369
mln dlrs in revenues a year. That compares with 1.1 mln dlrs a
year for the average Burger King and 800,000 dlrs a year for
the average Wendy's." Since it cost about the same to build a
single store for any one of these chains, he said, "McDonald's
can well justify their expansion."
    Lee expects McDonald's to earn 4.40 dlrs a share in 1986
and 5.15 dlrs in 1988. Last year it earned 3.72 dlrs a share.


.I 13244
.C
earn
.W
ICN PHARMACEUTICAL INC <ICN> 1ST QTR FEB 28 NET.
    COSTA MESA, Calif., March 20 -
    Oper shr 14 cts vs four cts
    Oper net 2,959,000 vs 1,103,000
    Sales 22.5 mln vs 25.2 mln
    Note: oper data does not include extraordinary gains of
3,686,000 dlrs, or 17 cts per shr, in current quarter and
975,000 dlrs, or eight cts per shr, in year ago quarter from
sales of certain marketable securities.


.I 13246
.C
earn
.W
AMERICAN FEDERAL COLORADO <AFSL> HALVES PAYOUT.
    DENVER, March 20 - American Federal Savings and Loan
Association of Colorado said its board cut the quarterly
dividend to 7-1/2 cts per share from 15 cts.
    The dividend is payable April 14 to holders of record March
31.
    The company said earnings will continue under pressure this
year due to the weakness of the Colorado economy and a high
level of nonearning assets.


.I 13247
.C
earn
.W
TEXAS UTILITIES CO <TXU> 12 MTHS FEB 28 NET.
    DALLAS, March 20 -
    Shr 4.50 dlrs vs 4.30 dlrs
    Net 637.4 mln vs 588.5 mln
    Revs 3.95 billion vs 4.10 billion
    Avg shrs 141.7 mln vs 136.9 mln


.I 13249
.C
earn
.W
<GUARDIAN TRUSTCO INC> 4TH QTR NET.
    MONTREAL, March 20 -
    Shr 15 cts vs nine cts
    Net 528,000 vs 374,000
    Revs not given
    Year
    Shr 1.25 dlrs vs 42 cts
    Net 2,853,000 vs 1,579,000
    Revs 55.3 mln vs 46.8 mln
    Note: shr after preferred dividends


.I 13250
.C
acq
.W
ENVIROPACT <VIRO> TO MAKE ACQUISITION.
    MIAMI, March 20 - Enviropact Inc said it has signed a
letter of intent to acquire Willms Trucking Co Inc for about
12.5 mln dlrs, with completion expected in 45 days.
    In the year ended September 30, Willms had revenues of
about 15 mln dlrs.  It transports hazardous waste, sand and
gravel.


.I 13251
.C
earn
.W
VIRATECK INC <VIRA> 1ST QTR FEB 28 OPER LOSS.
    COSTA MESA, Calif., March 20 -
    Oper shr loss 23 cts vs profit 16 cts
    Oper loss 1,868,000 vs profit 1,293,000
    Revs 183,000 vs 3,400,000
    Note: Oper data does not include year ago extraordinary
gain of 750,000 dlrs, or nine cts per shr.


.I 13253
.C
earn
.W
PARKWAY CO <PKWY> SETS QUARTERLY.
    JACKSON, Miss., March 20 -
    Qtly div 20 cts vs 20 cts prior
    Pay May 20
    Record May Four


.I 13254
.C
acq
.W
ITALY SETS RULES FOR COMPANY HOLDINGS IN BANKS.
    ROME, March 20 - Companies will henceforth be able to own
stakes in banks, but these should not constitute a "dominant"
holding, an Italian government committee ruled.
    The Interministerial Committee on Credit and Savings,
headed by Treasury Minister Giovanni Goria, said its decision
reflected the "need to safeguard the principle of separation
between banks and non-financial concerns."
    It did not quantify what might constitute a "dominant"
holding.
    The committee also set conditions for the allocation of
credits by banks to companies or individuals holding stakes in
them, and stipulates conditions under which the Bank of Italy
could exercise its powers of control in the case of stakes held
by banks in companies or other banks.
    Under the ruling, credits given by banks or their
subsidiaries to groups or individuals holding five pct or more
of the bank's capital must not exceed defined limits.
    The value of credits given cannot exceed either one-fifth
of the combined capital and reserves of the bank itself or
two-fifths of the value of the stake owned in the bank by the
group or individual concerned.
    Exceptions to these conditions include credits to concerns
in which the bank itself has a stake and to branches of foreign
banks. Credits made by foreign companies or banks to
subsidiaries which have their legal base in Italy will also be
excluded from the conditions.
    The Bank of Italy will request banks to insert rules in
their statutes to ensure that companies or individuals holding
five pct or more of the bank's capital are not given privileged
treatment with regard to credit allocation and terms.
    With regard to bank holdings in companies, the Bank of
Italy can exercise supervisory controls when information on a
bank's consolidated activities show single shareholdings in a
company or another bank of 25 pct or more, owned directly or
indirectly.
    Such controls can also be exercised even if the stake held
is below 25 pct if it can be considered a controlling interest.
    The controls will not be exercised in cases where the value
of the bank's stake in a concern is below the lesser of two
predefined limits.
    These limits are set at 15 billion lire or two pct of the
total assets of the parent company of the shareholding bank.


.I 13255
.C
earn
.W
PARISIAN INC <PASN> 4TH QTR JAN 31 NET.
    BIRMINGHAM, Ala., March 20 -
    Shr 58 cts vs 57 cts
    Net 4,313,000 vs 3,824,000
    Sales 72.8 mln vs 61.5 mln
    Avg shrs 7,492,000 vs 6,740,000
    Year
    Shr 1.33 dlrs vs 1.23 dlrs
    Net 9,592,000 vs 8,257,000
    Sales 226.4 mln vs 184.4 mln
    Avg shrs 7,228,000 vs 6,740,000


.I 13256
.C
earn
.W
SPI PHARMACEUTICALS INC <SPIP> 1ST QTR OPER NET.
    COSTA MESA, Calif., March 20 - Qtr ended Feb 28
    Oper shr 31 cts vs 14 cts
    Oper net 3,203,000 vs 1,357,000
    Revs 13.0 mln vs 15.6 mln
    Note: Oper data does not include year ago extraordinary
gain of 821,000 dlrs, or eight cts per shr.


.I 13257
.C
earn
.W
GUARDIAN TRUSTCO SEES MODEST 1987 OUTLOOK.
    MONTREAL, March 20 - <Guardian Trustco Inc>, earlier
reporting a 198 pct increase in full year earnings per share,
said the outlook for 1987 is more modest.
    The company said it has started a number of long-term
growth projects which have a payback period exceeding one year.
Guardian Trustco did not give a specific earnings forecast.
    The company earlier reported 1986 net profit rose to
2,853,000 dlrs or 1.25 dlrs a share, from year-earlier
1,579,000 dlrs or 42 cts a share.


.I 13258
.C
acq
.W
COGECO BUYS FM STATION, PLANS SHARE ISSUE.
    MONTREAL, March 20 - <Cogeco Inc> said it agreed to acquire
100 pct of Quebec City radio station CJMF-FM and will issue
subordinated voting shares of the company to cover a portion of
the purchase price.
    It said the purchase price and other terms of the
transaction have not been disclosed. The transaction is subject
to approval of the Canadian Radio-Television and
Telecommunications Commission.


.I 13259
.C
earn
.W
******NESTLE 1986 NET 1.79 BILLION SWISS FRANCS VS 1.75 BILLION, DIV UNCHANGED 145 FRANCS.
Blah blah blah.

.I 13260
.C
earn
.W
TEXAS INDUSTRIES INC <TXI> 3RD QTR FEB 28 NET.
    DALLAS, March 20 -
    Shr loss 50 cts vs profit one ct
    Net loss 4,419,000 vs profit 276,000
    Sales 126.8 mln vs 151.3 mln
    Nine mths
    Shr loss 42 cts vs profit 1.27 dlrs
    Net loss 3,160,000 vs profit 11.2 mln
    Sales 429.9 mln vs 477.5 mln
    NOTE: Current year net includes tax credits of 2,164,000
dlrs in quarter and 328,000 dlrs in nine mths.


.I 13263
.C
earn;crude;
.W
TALKING POINT/FIRST CITY BANCORPORATION <FBT>.
    By Julie Vorman, Reuters
    HOUSTON, March 20 - First City Bancorporation's sale of 54
mln dlrs in oil loans to Prudential-Bache should significantly
reduce its energy problems, but the bank's losses are still
virtually guaranteed to continue, analysts said.
    The package of energy loans was sold at book value, so
First City did not to show a gain or loss, said bank spokesman
James Day. He added it was possible First City would sell more
of the bank's remaining 1.4 billion dlrs in oil-related loans
to raise cash.
    The loans had been made by First City to oil producers and
to oilfield service and supply companies. Day said some had
already been classified as nonperforming, or charged off as a
loss, but he could not identify how many were included in those
categories.
    The loans were purchased by Prudential Bache's Energy
Growth Fund, a limited partnership created last month with 90
mln dlrs in funding to invest in oil and gas properties.
    First City, the big Texas bank hit hardest by the downturn
in oil prices, lost a record 402 mln dlrs in fiscal year 1986
and has said it is seeking a merger partner or some other
capital assistance. The Houston-based bank's nonperforming
assets totaled 897.1 mln dlrs at yearend, up from 563.1 mln
dlrs at the end of 1985
    Analysts have said no buyer is likely to be interested in
the troubled bank unless government assistance is available.
    "Their problems are not just limited to energy. They have a
substantial portfolio in real estate. This sale in and of
itself won't make the company look better to a potential
buyer," said Ray Archibold, a banking analyst with McCarthy,
Crisanti and Maffei Inc.
    "It does reduce the bank's exposure in energy loans and 54
mln dlrs is a substantial amount," Archibold said, "but the
deal represents only about four pct of their energy loans."
    Of First City's total loan portfolio of 9.9 mln dlrs, about
14 pct or 1.4 billion dlrs were made to energy producers or
suppliers, analysts said. Its record losses have been caused by
its past status as one of the nation's top lenders to oil and
gas producers and suppliers during the boom days of the late
1970s and early 1980s.
    First City said about half of the loans sold to Prudential
came from its Energy Finance Co., an entity formed in 1982 to
loan money to "more venturesome" oil borrowers that promised a
higher potential return. The other half of the loans were from
First City's lead bank in Houston.
    Chris Kotowski, an analyst with Oppenheimer and Co., said
the sale of the package of energy loans was the first
encouraging news from First City in months.
    "It's not going to solve all of First City's problems but
it's a good transaction for them. It may be possible for them
to sell additional loans," Kotowski said. "Prudential can fund
these things more cheaply than First City and there's an
incentive to invest in troubled energy companies right now as
values are depressed"
    In a statement, First City chairman J.A. Elkins said the
bank's strategy was to reduce the proportion of energy loans to
total loans. "This move, which we believe is the first
transaction of its kind, helps us further, and we were able to
make it without suffering a loss."


.I 13264
.C
earn
.W
******SUNSHINE MINING CO 4TH QTR SHR LOSS 64 CTS VS LOSS 57 CTS.
Blah blah blah.

.I 13265
.C
ipi
.W
CORRECTION - ROME - ITALIAN JANUARY PRODUCTION.
    In story headlined ITALIAN JANUARY INDUSTRIAL OUTPUT FALLS
3.4 PCT, in second paragraph please read,
    ... The fall follows ...
    (changing rise to fall)


.I 13267
.C
earn
.W
GRACO INC <GGG> VOTES QUARTERLY DIVIDEND.
    MINNEAPOLIS, MINN., March 20 -
    Qtly div 15 cts vs 15 cts prior qtr
    Pay 6 May
    Record 8 April


.I 13268
.C
acq
.W
AUDIO/VIDEO <AVA> SUES OVER CYCLOPS <CYL> BID.
    DAYTON, Ohio, March 20 - Audio/Video Affiliates Inc said it
has filed suit against <Dixons Group PLC>, Cyclops Corp,
Alleghany Corp <Y> and others in connection with Dixons'
recently completed tender offer in which it raised its
ownership of Cyclops to 56 pct.
    The company said the suit, filed in U.S. District Court for
the Southern District of Ohio, seeks a temporary restraining
order and preliminary injunction requiring Dixons, for 10
business days, to permit any Cyclops shareholder who previously
tendered and now wishes to withdraw to do so.
    The company said the order and injunction would also
prohibit Dixons from exercising a "lockup" option granted it by
Cyclops and prohibit Dixons for 10 business days from
attempting to exercise any control over Cyclops.
    Audio/Video said the suit also requests the court to order
Cyclops to immediately provide to all potential bidders for
Cyclops all information given to Dixons.
    Audio/Video and Citicorp <CCI> have been tendering for all
Cyclops shares in a competing offer at 80.00 dlrs per share but
said it could raise its bid to 92.50 dlrs under certain
circumstances.  Dixons offered 90.25 dlrs in its tender.
    In February Alleghany agreed to buy Cyclops' steel and
nonresidential construction business for 111.6 mln dlrs in cash
and the assumption of liabilities.


.I 13270
.C
acq
.W
DIXONS SAYS SEC MOVING ON CYCLOPS <CYL> TENDER.
    NEW YORK, March 20 - <Dixons Group PLC> said the 
Securities and Exchange Commission has authorized, but not
commenced, the filing of an action against it concerning its
waiver of a condition in its tender offer for Cyclops Corp.
    Dixons has offered to buy about 80 pct of Cyclops shares.
The SEC action deals with a waiver by Dixons of a condition in
the tender offer which was made without an appropriate
extension of the offer, Dixons said.
    Dixons also said it is currently discussing the matter with
the SEC. The SEC has a standing policy of never confirming
or denying investigations or upcoming legal action.


.I 13273
.C
earn
.W
SUNSHINE MINING CO <SSC> 4TH QTR LOSS.
    DALLAS, March 20 -
    Shr loss 64 cts vs loss 57 cts
    Net loss 34.9 mln vs loss 22.1 mln
    Revs 31.5 mln vs 60.2 mln
    Avg shrs 60.1 mln vs 45.2 mln
    Year
    Shr loss 2.27 dlrs vs loss 1.66 dlrs
    Net loss 103.2 mln vs loss 57.6 mln
    Revs 129.8 mln vs 169.5 mln
    Avg shrs 51.2 mln vs 38.1 mln
    NOTE: Per share results after preferred dividend
requirements of 3.3 mln dlrs vs 3.5 mln dlrs in quarter and
12.9 mln dlrs vs 5.7 mln dlrs in year
    1986 4th qtr loss includes accruals, writedowns and
non-recurring charges aggregating 13.9 mln dlrs including costs
anticipated in 1987 for the reopening of the Sunshine Mine and
a writedown of the capitalized costs at the Sixteen-to-One Mine
by 4.2 mln dlrs
    1986 year loss includes charges totaling 100 mln dlrs


.I 13276
.C
earn
.W
SCAT HOVERCRAFT INC <SCAT> YEAR LOSS.
    MIAMI, March 20 -
    Shr loss not given
    Net loss 1,300,000
    Sales 3,300,000
    NOTE: Company incorporated in June 1985.
    Fourth quarter loss 895,000 dlrs.


.I 13278
.C
earn
.W
NESTLE SA <NESZ.Z> YEAR 1986.
    VEVEY, Switzerland, March 20 -
    Div 145 Swiss francs per share and 29 francs per
participation certificate (unchanged)
    Net 1.79 billion vs 1.75 billion
    Shr 526 vs 515
    Turnover 38.05 billion vs 42.23 billion
    Addition to reserves 170 mln vs 95 mln.


.I 13282
.C
earn
.W
SOUTHEAST BANKING CORP <STB> SETS QUARTERLY.
    MAIMI, March 20 -
    Qtly div 22 cts vs 22 cts prior
    Pay April 10
    Record March 30


.I 13283
.C
earn
.W
BALANCE COMPUTER CORP 3RD QTR JAN 31 LOSS.
    BALTIMORE, March 20 -
    Shr loss one ct vs profit five cts
    Net loss 34,496 vs profit 207,165
    Rev 102,691 vs 297,813
    Nine months
    Shr profit one ct vs profit five cts
    Net profit 69,018 vs profit 230,188
    Rev 641,823 vs 666,319
    NOTE: The company was delisted from the NASDAQ in November
1985. Third qtr 1986 net includes extraordinary credit of
76,400 dlrs, or four cts a share.


.I 13284
.C
earn
.W
RECOMMENDATION REITERATED ON WANG LABS <WANB>.
    NEW YORK, MARCH 20 - Analyst Thomas McCrann of Merrill
Lynch said he reiterated a "buy" recommendation of Wang
Laboratories Inc, noting that a successful cost cutting
campaign could reduce the earnings loss expected for the third
quarter ending in March.
    Wang was the most actively traded stock on the American
Stock Exchange, rising 3/4 to 16-5/8.
    McCrann said that "Wang is a little bit ahead of where they
were expected to be in their cost reductions, and as a result,
the odds have increased that the loss for the quarter will be
less than had been expected."
    McCrann said he expects Wang to report break even earnings
per share or only a small loss per share for the third quarter.
    He said for the year, however, the company should report a
loss of about 50 cts a share compared with earnings of about 35
cts a share a year ago.


.I 13285
.C
money-fx;interest;
.W
******FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.
Blah blah blah.

.I 13286
.C
acq
.W
JAPAN, BRITAIN DISAGREE ON TELECOM MERGER.
    TOKYO, March 20 - Cable and Wireless Plc <CAWL.L> is
resisting attempts to merge two Japan-based telecommunications
firms in the hope that overseas political pressure will force a
change in those plans, a company executive said.
    Cable and Wireless, which holds a 20 pct stake in one of
the two Japanese firms, is opposed to plans to reduce its share
to three pct in the merged firm, director of corporate strategy
Jonathan Solomon told reporters.
    That plan, put forward by a senior member of the powerful
business organization Keidanren with the tacit backing of the
Post and Telecommunications Ministry, has caused a storm of
protest from abroad that Japan is seeking to exclude foreign
firms from a meaningful position in the market.
    Pacific Telesis Group <PAC.N> of the United States also
holds a 20 pct stake in one of the newly formed consortia,
<International Digital Communications Inc> (IDC).
    Solomon said that both British Prime Minister Margaret
Thatcher and U.S. Secretary of State George Schultz have
written to the Japanese government about the planned merger.
    A key U.S. Senate committee, Commerce Secretary Malcolm
Baldrige and Trade Representative Clayton Yeutter have also
expressed opposition to the merger, he said.
    The Post and Telecomunications Ministry reiterated again
that it sees no need for two competitors to <Kokusai Denshin
Denwa Co Ltd>, which holds a monopoly on international calls
from Japan. The ministry has also suggested that foreign
shareholders not hold managerial positions in the new firm.
    In an attempt to hammer out an agreement, Solomon today met
Fumio Watanabe, the senior Keidanren officer trying to arrange
the merger. But the two sides remained deadlocked.
    At stake is C and W's 400 mln dlr project to lay fibre
optic cables between Japan and Alaska, to form part of its
global network.
    "C and W wants to start right away on the project, such as
application and other procedures," said Watanabe, who is also
chairman of <Tokio Marine and Fire Insurance Inc>. The Japanese
side is saying that the decision on such a plan should be left
with the new firm, after the merger.
    "These decisions (on the merger) were made in consideration
of Japan's economic conditions and legal systems. I told him we
are not a colony or something," said Watanabe.


.I 13287
.C
earn
.W
WINTHROP INSURED MORTGAGE II <WMI> SETS PAYOUT.
    BOSTON, March 20 -
    Qtly div 35 cts vs 35 cts prior
    Pay April 15
    Record March 31
    NOTE: Winthrop Insured Mortgage Investors II.


.I 13288
.C
money-supply
.W
GERMAN MONEY SUPPLY GROWTH SLOWS IN FEBRUARY.
    FRANKFURT, March 20 - West Germany's money supply growth
slowed in February after January's sharp rise but the trend is
still definitely upward, the Bundesbank said in a statement.
    Growth in the traditionally broad M3 aggregate was only
moderate in February. While cash in circulation, deposits with
statutory withdrawal notice and sight deposits grew sharply,
short-term time deposits fell after expanding unusually
strongly in January.
    In the six months to February, M3, which excludes holdings
of German non-banks abroad, grew at a seasonally adjusted
annual rate of 8.5 pct after 9.8 in the six months to January.
    Compared with February 1986, M3 rose 7-1/2 pct.
    In the six months to February, M2, which excludes time
deposits with statutory withdrawal notice, rose at a seasonally
adjusted annual rate of 8.8 pct and M1, which consists of cash
and sight deposits, rose seven pct.
    International transactions of non-banks again led to a
significant inflow of funds, the Bundesbank said.
    Net claims of commercial banks and the Bundesbank against
foreigners, refecting these foreign payments, increased by 9.1
billion marks in February, little changed from January's rise.
    But in contrast to January, the dampening effect of the
inflow on domestic credit demand outweighed the expansionary
effect on money growth, the Bundesbank said.
    Outstanding bank credits to companies and private
individuals remained virtually unchanged in February.
    A sharp drop in short-term company credits, which reflected
the foreign funds inflow, was balanced by a moderate rise in
long-term credits and a sharp rise in credits for securities.
    At the end of February total bank credits to the private
sector were 4-1/2 pct above the February 1986 level.
    The effect of public authority cash movements on the money
supply was slightly expansive, the Bundesbank said.
    Although banks acquired large amounts of public authority
paper, public authorities drew down book credits at commercial
banks and the Bundesbank.
    Capital formation strengthened in February and slowed money
supply growth to a larger extent than in January.
    A total of 7.7 billion marks in long-term funds was placed
with banks after 6.6 billion the previous month.


.I 13289
.C
earn
.W
ENTEX ENERGY DEVELOPMENT LTD <EED> SETS PAYOUT.
    HOUSTON, March 20 -
    Qtly div 15 cts vs 15 cts prior
    Pay May 29
    Record March 31
                                                    


.I 13290
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 20 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-1/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 13292
.C
trade
.W
 EC SAYS U.S. BROKE TRADE RULES IN AKZO-DUPONT ROW.
    BRUSSELS, March 20 - The European Community Commission has
charged the United States with breaking international trade
rules by excluding Dutch-made fibres from the U.S. Market and
said it would take the issue to the world trade body GATT.
    In the latest of a series of trade disputes with
Washington, the executive authority alleged that a section of
the U.S. Tariff Act was incompatible with the GATT (General
Agreement on Tariffs and Trade) because it discriminated
against imported products in favour of domestically-produced
goods.
    The Commission said it would ask Geneva-based GATT to rule
on whether the section in question, which officials said had
proved a barrier to many EC exporters, conformed to its rules.
    Commission officials did not rule out retaliatory measures
if, after a GATT decision against it, Washington failed to
bring the disputed section into line with international rules.
    The executive's decision to go to GATT follows a complaint
to it by the Dutch company Akzo <AKZO.AS>, whose "aramid"
synthetic fibres have been banned from the U.S. Market because
of charges by the U.S. Firm <Dupont> that the fibres violate
the American company's patents.
    Akzo alleged that the ban, imposed by the U.S.
International Trade Commission (ITC), was discriminatory and
incompatible with GATT provisions.
    The dispute centres on the fact that section 337 of the
U.S. Tariff Act gives the ITC jurisdiction  over imported
products. The EC Commission charged that EC producers did not
have the same possibilities for defending themselves before the
ITC as they would have in a normal U.S. Court.
    "Consequently the procedure followed...Is less favourable
than that which takes places in normal courts of law for goods
produced in the United States," it said in a statement.


.I 13294
.C
acq
.W
******U.S. AGENCY TO ALLOW U.S. AIR TO BUY 51 PCT OF PIEDMONT PENDING FINAL OKAY OF MERGER.
Blah blah blah.

.I 13295
.C
earn
.W
FINAL TEST INC <FNLT> 4TH QTR LOSS.
    DALLAS, March 20 -
    Shr loss six cts vs loss 88 cts
    Net loss 128,141 vs loss 1,298,377
    Sales 1,332,218 vs 385,146
    Year
    Shr profit six cts vs loss 1.47 dlrs
    Net profit 120,571 vs loss 2,171,011
    Sales 4,617,034 vs 2,959,141


.I 13296
.C
gold;silver;lead;copper;strategic-metal;zinc;
.W
HOUSTON METALS' MINE YIELDS POSITIVE RESULTS.
    VANCOUVER, March 20 - <Houston Metals Corp> said the
the first phase of the underground rehabilitation, extensive
drilling and bulk sampling program at its Silver Queen Mine has
yielded positive results.
    Houston said representative assays from the 2,750 ft and
2,600 ft levels at the south end of the mine established ore
deposits in the following ranges: copper, 3.7 pct to 5.08 pct,
lead .99 pct to 1.5 pct, zinc six pct to 9.6 pct, silver 15.63
pct to 79.92 oz per ton, gold .062 to .19 oz per ton, germanium
93 to 103 grams per ton, gallium five to 18 grams per ton.
    In addition, Houston Metals said the weighted average of 25
diamond-drilled holes 375 ft below the 2,600 foot level and 800
ft along the strike assayed gold at .237 oz per ton, silver at
10.91 oz per ton and zinc at 8.99 pct.
    An apparent parallel vein structure at the 2,600 ft level
returned similar values, the company said.
    It added that preliminary metallurgical tests from
representative bulk ore samples indicate the commercial
feasability of producing a zinc and a copper-lead concentrate.
    Houston Metals said gold, silver and the base metals have
recoveries of 90 pct to 95 pct, with 95 pct of gold recovered
from better gold ores, while gallium, germanium and indium have
recoveries of between 66 pct to 82 pct and are included in the
zinc concentrate.
    The company's 1987 program of diamond drilling, underground
drifting and metallurgical evaluation is scheduled to start on
April.
    Houston Metals said it has a 60 pct interest in the Silver
Queen mines.
    It added that funds for the program have been provided by
First Exploration Fund, a Canadian limited partnership
sponsored by Merrill Lynch Canada Inc and Dominion Securities
Inc.


.I 13297
.C
earn
.W
MICHIGAN NATIONAL CORP <MNCO> VOTES DIVIDEND.
    FARMINGTON HILLS, MICH., March 20 -
    Qtly div 30 cts vs 30 cts prior qtr
    Pay 15 April
    Record 1 April


.I 13303
.C
earn
.W
AUTOCLAVE ENGINEERS INC <ACLV> QTLY DIVIDEND.
    ERIE, Pa., March 20 - 
    Qtly div four cts vs four cts prior
    Pay April 15
    Record March 31
.


.I 13305
.C
acq
.W
*****WASTE MANAGEMENT AMENDS CHEMLAWN OFFER, RAISING IT TO 35 DLRS A SHARE FROM 33 DLRS.
Blah blah blah.

.I 13306
.C
acq
.W
******AMERICAN MOTORS SAID DIRECTORS TOOK NO ACTION ON CHRYSLER PROPOSAL, POSTPONES ANNUAL MEETING.
Blah blah blah.

.I 13310
.C
acq
.W
WASTE MANAGEMENT<WMX> HIKES CHEMLAWN <CHEM> BID.
    OAK BROOK, ILL., March 20 - Waste Management Inc said it
amended its offer to buy the outstanding shares of ChemLawn
Corp to 35 dlrs a share.
    On Thursday the company said it was prepared to bid 33 dlrs
a share, up from its original 27 dlrs a share offer.
    As a result of the price increase, made through Waste
Management's wholly owned subsidiary, WMX Acquisition Corp, the
offer has been extended and the withdrawal rights will not
expire at midnight EDT April Two, unless further extended.
    Waste Management also said it amended its offer to provide
that the tender offer price will not be reduced by ChemLawn's
10 cts a share dividend payable to holders of record April 1,
1987.


.I 13311
.C
earn
.W
ENTEX ENERGY DEVELOPMENT LTD <EED> YEAR LOSS.
    HOUSTON, March 20 - 
    Unit loss 4.36 dlrs vs loss 4.27 dlrs
    Net loss 37.4 mln vs 32.9 mln
    Revs 19.3 mln vs 30.3 mln
    Avg units 8,413,000 vs 7,557,000
    Note: Net includes writedown of oil and gas properties of
21.0 ln dlrs vs 16.5 mln dlrs and writedown of geothermal
property of 10.4 mln dlrs vs 10.5 mln dlrs.


.I 13312
.C
acq
.W
U.S. SAYS USAIR <U> MAY BUY 51 PCT OF PIEDMONT.
    WASHINGTON, March 20 - The Department of Transportation
said it will allow USAIR Group to acquire up to 51 pct of
Piedmont Aviation <PIE> voting stocks pending final approval of
the proposed merger of the two airlines.
    The agency said the stock would have to be held in a voting
trust controlled by an independent trustee.
    An agency spokesman said that if USAIR, which has proposed
to buy all of Piedmont shares, controls more than 51 pct of the
firm's outstanding stock, it will have one week to sell those
excess shares.
    USAIR asked the Department of Transporation earlier this
month to approve a voting trust.
    An agency spokesman said this is a device that airlines use
to get majority control of a company it is trying to acquire
while their application before the government is pending
approval.
    The spokesman said the firm had asked the transporation
agency permission to buy all of Piedmont's voting stock, the
but agency decided to give approval for 51 pct of shares.
    The spokesman said agency action on the proposed merger
application could take as long as six months.


.I 13313
.C
ship;grain;corn;
.W
USDA NOT PLANNING ANY MAJOR PRICING CHANGES.
    WASHINGTON, March 20 - The Agriculture Department is not
considering any major changes in its pricing system for posted
county prices, an Agriculture Department offical said.
    "We do not have current plans to make any major adjustments
or changes in our pricing," said Bob Sindt, USDA assistant
deputy administrator for commodity operations.
    U.S. grain traders and merchandisers said earlier this week
USDA might act soon to reduce the cash corn price premium at
the Gulf versus interior price levels by dropping ASCS posted
prices to encourage interior PIK and roll movement.
    But Sindt denied USDA is planning any such changes.
    "If people are suggesting that we are going to make
wholesale changes in pricing, we are not considering this," he
said.
    Sindt, however, did not rule out the possiblity of
implementing more minor changes in its pricing system.
    "We are continually monitoring the whole nationwide
structure to maintain its accuracy," he said. "If we become
convinced that we need to make a change, then appropriate
adjustments will be made."
    Sindt acknowledged that concern has been voiced that USDA's
price differentials between the New Orleans Gulf and interior
markets are not accurate because of higher than normal barge
freight rates.
    He said commodity operations deputy administrator Ralph
Klopfenstein is currently in the midwest on a speaking tour and
will meet with ASCS oficials in Kansas City next week.
    Sindt said a number of issues will be discussed at that
meeting, including the current concern over the gulf corn
premiums.
    He defended the USDA differentials, saying that these price
margins reflect an average of prices throughout the year and
that seasonal factors will normally cause prices to increase or
decrease.
    The USDA official also said that only those counties that
use the Gulf to price grain are being currently affected by the
high barge freight tariffs and increased gulf prices.
    When asked if the USDA emergency storage program which
allows grain to be stored in barges was taking up barge space
and accounting for the higher freight rates, Sindt discounted
the idea.
    He said USDA has grain left in only about 250 barges and
that, under provisions of the program, these all have to be
emptied by the end of March.


.I 13316
.C
acq
.W
******AFFILIATED PUBLICATIONS TO BUY BILLBOARD PUBLICATIONS  FOR 100 MLN DLRS.
Blah blah blah.

.I 13317
.C
acq
.W
AMC <AMO> TAKES NO ACTION ON CHRYSLER <C> BID.
    CHICAGO, March 20 - American Motors Corp said its directors
reviewed a Chrysler Corp merger proposal but took no action on
it.
    The company said its directors met in New York today at a
regularly scheduled meeting. The board's review is continuing
with the company's independent legal and financial advisers,
American Motors said in a statement issued from New York.
    American Motors' board voted to postpone its annual
shareholders meeting scheduled for April 29 in Southfield,
Michigan.
    The next regularly scheduled meeting of American Motors
board will be April 29, although it is expected that directors
will meet again prior to that date, according to the statement.
    Early last week, Chrysler said it agreed to buy the 46.1
pct interest owned by Regie Nationale des Usines Renault in
American Motors and acquire the balance of American Motors in a
transaction valued at 1.11 billion dlrs.
    Later that week, AMC said it had retained financial and
legal advisers and expected to meet periodiocally over the next
several weeks to consider the proposal.


.I 13318
.C
earn
.W
NESTLE SEEKING AUTHORISATION FOR CERTIFICATE ISSUE.
    VEVEY, Switzerland, March 20 - Nestle SA <NESZ.Z> said it
would seek shareholder approval to issue participation
certificates up to 20 pct of share capital, instead of the
current limit of 10 pct.
    It said it wanted this authorisation in view of future
certificate issues. Nestle's nominal capital amounts to 330 mln
Swiss francs.
    Nestle reported net profits of 1.79 billion francs for
1986, up 2.2 pct from 1985, while turnover fell 9.9 pct to
38.05 billion as the Swiss franc strengthened against other
currencies.
    The parent company's net profit rose to 666.6 mln francs
from 592.9 mln in 1985, and the company planned an unchanged
dividend of 145 francs per share and 29 francs per certificate
after placing 170 mln francs in reserves, against 95 mln last
year.
    The payout represented 27.6 pct of group net profit,
against 28.2 pct last year.
    Nestle said it had also invited Fritz Leutwiler, former
president of the Swiss National Bank and currently chairman of
BBC AG Brown Boveri und Cie <BBCZ.Z>, to join the Nestle board.


.I 13323
.C
trade
.W
GATT TO DEBATE U.S. CHARGES OF AIRBUS SUBSIDIES.
    GENEVA, March 20 - The U.S. Will pursue its complaint that
European governments unfairly subsidise the Airbus Industrie
aircraft consortium in proceedings at the GATT civil aircraft
committee, a GATT spokesman said today.
    The U.S. Presented its case for the first time to the
aircraft committee of the General Agreement on Tariffs and
Trade (GATT) during a special two-day session ending today.
GATT rules cover some 80 pct of world commerce.
    The 20-member committee agreed to open debate on the U.S.
Complaint, starting with informal consultations and then
holding a special session in July, trade officials said.
    "The tension has eased," the permanent trade ambassador of
the 12-member European Community Tran Van Thinh told reporters.
"The U.S. Has decided to go through proper channels."
    U.S. Trade officials again made clear their anger over what
they call unfair government support for Airbus, voiced during a
visit to European capitals in February.
    In a letter calling for the special committee meeting,
Washington charged France, West Germany, the U.K., Spain and
the EC Commission with unfair practices on behalf of Airbus.
    The U.S. Charges that the Europeans are violating rules
laid down in the 1979 Agreement on Trade in Civil Aircraft.
    Washington presented its reading of rules on inducement to
purchase aircraft and support for development of airlines
during the special session and asked the committee to confirm
its view.
    Official sources in the delegations said the U.S. Views
would be considered during the informal consultations but the
Europeans would also be free to bring up any complaints against
American civil aircraft practices.
    Some delegates said the U.S. Position appeared to give such
broad interpretation to the rules as to suggest that the civil
aircraft accord needed re-negotiating. All these matters would
be considered during the informal meetings.


.I 13325
.C
money-fx;trade;
.W
LEADING ECONOMISTS CALL FOR MORE GROWTH ABROAD.
    WASHINGTON, March 20 - A panel of four leading economists
told a congressional hearing today that foreign economies will
need to expand to avoid recession as the U.S. trade deficit
declines.
    C. Fred Bergsten, a former senior Treasury Department
official, and Robert Solomon of the Brookings Institution told
the Senate Foreign Relations Committee, the major exporting
countries risk recession if they do not expand because U.S.
demand for imports is expected to fall.
    "They need to beef up domestic demand as their trade
surplus falls," or unemployment will keep growing, Bergsten
said.
    Bergsten predicted the U.S. trade deficit, which hit 169
billion dlrs last year, will fall 30-40 billion dlrs a year for
the next two years as a result of the dollar's 35-40 pct
decline since September 1985.
    The government should intervene to push the dollar down
further if the previous declines do not lead to an improvement
in the trade picture, if the U.S. budget deficit is not reduced
and if foreign expansion does not occur, he added.
    Solomon said the dollar must fall further to compensate for
the huge interest payments required on U.S. foreign debt. The
Paris agreement between the major industrialized countries
provided only for a pause in its decline, he said.
    Rimmer de Vries, senior vice president of Morgan Guaranty
Trust Co., said the U.S. trade deficit problem is a problem of
lagging growth in industrial economies, prolonged currency
misalignment, debt problems of the developing countries, and
unbalanced growth in the Asian industrializing countries.
    John Makin of the American Enterprise Institute, suggested
foreign tax cuts to increase demand and pick up the slack from
the U.S. trade deficit fall.


.I 13326
.C
earn
.W
******MONFORT OF COLORADO INC 2ND QTR SHR 1.03 DLRS VS 1.34 DLRS.
Blah blah blah.

.I 13328
.C
money-supply
.W
******CANADIAN MONEY SUPPLY M-1 FALLS 1.16 BILLION DLRS IN WEEK, BANK OF CANADA SAID               .
Blah blah blah.

.I 13330
.C
lead
.W
NO FORCE MAJEURE ON LEAD FROM CAPPER PASS.
    LONDON, March 20 - U.K. Smelter Capper Pass denied rumours
that the company had declared, or was about to declare, force
majeure on lead deliveries.
    This followed trader talk on the London Metal Exchange,
LME, after broker bids were made at increased premiums for
Capper Pass brand material.
    Traders said some slight production problems seem to exist
but are unlikely to have any impact on the market. Lead values
on the LME today were unchanged around 299 stg per tonne for
three months delivery after thin business in a one stg range.


.I 13331
.C
acq
.W
AFFILIATED PUBLICATIONS <AFP> TO BUY BILLBOARD.
    BOSTON, March 20 - Affiliated Publications Inc said it
agreed to acquire all the outstanding stock of <Billboard
Publications Inc> for 100 mln dlrs in cash from a shareholder
group led by <Boston Ventures Limited Partnership.>
    Affiliated, which owns the company that publishes the
Boston Globe, said the acquisition will give it a strong
position in the growing market for specialty magazines.
    Under a separate agreement, Affiliated said that certain
members of Billboard's management plan to buy up to 10 pct of
the equity in Billboard following Affiliated's acquisition of
the company.
    Billboard publishes eight specialty magazines, including
Billboard magazine, and 15 annual directories. It also
publishes and distributes speciality books under four imprints
and operates two book clubs.
    Affiliated is the parent company of Globe Newspaper Co,
publisher of the Boston Globe. It also has interests in
cellular telephone and paging services providers.


.I 13334
.C
acq
.W
FIRM HAS ALLEGHENY INT'L <AG> PREFERRED STAKE.
    WASHINGTON, March 20 - Spear, Leeds and Kellogg, a New York
brokerage partnership, said it has acquired 136,300 shares of
Allegheny International Inc's 11.25 dlr convertible preferred
stock, or 7.1 pct of the total outstanding.
    In a filing with the Securities and Exchange Commission,
Spear Leeds said it bought the stake for 11.7 mln dlrs as part
of its normal trading activities.


.I 13335
.C
acq
.W
WTD INDUSTRIES <WTDI> SAWMILL OFFER REJECTED.
    PORTLAND, Ore., March 20 - WTD Industries Inc said its
offer to buy the bankrupt Harris Pine sawmill in Pendleton,
Oregon was rejected by the bankruptcy court trustee.
    The company said the bid was rjected in favor of a higher
offer.


.I 13337
.C
acq
.W
CELINA <CELNA> SHAREHOLDERS APPROVE SALE.
    CELINA, OHIO, March 20 - Celina Financial Corp said
shareholders at a special meeting approved a transaction in
which the company transferred its interest in three insurance
companies to a wholly owned subsidiary which then sold the
three companies to an affiliated subsidiary.
    It said the company's interests in West Virginia Fire and
Casualty Co, Congregation Insurance co and National Term Life
Insurance Co had been transferred to First National Indemnity
Co, which sold the three to Celina Mutual for cash, an office
building and related real estate.


.I 13338
.C
acq
.W
GROUP HAS 5.1 PCT OF UNICORP AMERICAN <UAC>.
    WASHINGTON, March 20 - Two affiliated New York investment
firms and an investment advisor told the Securities and
Exchange Commission they have acquired 555,057 shares of
Unicorp American Corp, or 5.1 pct of the total outstanding.
    The group, which includes Mutual Shares Corp, said it
bought the stake for 5.3 mln dlrs for investment purposes and
has no intention of seeking control of Unicorp American.


.I 13339
.C
money-supply
.W
CANADIAN MONEY SUPPLY FALLS IN WEEK.
    OTTAWA, March 20 - Canadian narrowly-defined money supply
M-1 fell 1.16 billion dlrs to 32.94 billion dlrs in week ended
March 11, Bank of Canada said.
    M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, fell 1.31 billion dlrs to 75.39 billion
dlrs and M-2, which is M-1-A plus other notice and personal
fixed-term deposit fell 1.01 billion dlrs to 177.70 billion
dlrs.
    M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, fell 1.29 billion dlrs to 216.33 billion dlrs.


.I 13340
.C
acq
.W
******REVLON BUYS GERMAINE MONTEIL COSMETICS FROM BEECHAM GROUP FOR UNDISCLOSED TERMS.
Blah blah blah.

.I 13341
.C
acq
.W
REVLON <REV> BUYS BEECHAM'S COMSMETICS UNIT.
    NEW YORK, March 20 - Revlon Group Inc said it bought
Germaine Monteil's cosmetics business in the U.S. from the
Beecham Group PLC.
    Terms of the sale were not disclosed.
    The sale includes the rights to Germaine Monteil in North
and South America and in the Far East, as well as the worldwide
rights to the Diane von Furstenberg cosmetics and fragrances
lines and the U.S. distribution rights to Lancaster beauty
products.
    Meanwhile in London a statement from Beecham said the
business was sold to Revlon for 2.5 mln dlrs in cash and a
royalty payment.


.I 13342
.C
earn
.W
MONFORT OF COLORADO INC <MNFT> 2ND QTR NET.
    GREELEY, Colo., March 20 - Qtr ended Feb 28
    Shr 1.03 dlrs vs 1.34 dlrs
    Net 4,385,000 vs 5,792,000
    Revs 474.4 mln vs 381.4 mln
    Six mths
    Shr 2.46 dlrs vs 2.71 dlrs
    Net 10.5 mln vs 11.7 mln
    Revs 906.0 mln vs 757.6 mln


.I 13344
.C
gold
.W
GEODOME RESOURCES <GOEDF> TO PROCEED WITH MINE.
    HAILEY, Idaho, Calif., March 20 - Geodome Resources Ltd
said based on a feasibility study of its Sunbeam Mine it will
proceed with contruction and pre-production stripping as
rapidly as possible.
    The company said eight of nine holes drilled on the new ore
zone have an average grade of 0.046 ounces of gold per ton and
2.1 ounces of silver per ton.
    The deposit is 400 to 500 yards from the newly designed
Sunbeam pits, has large tonnage and will be drilled off this
summer, the company said.
    The study said ore reserves including dillution were
3,302,000 tons at 0.77 ounces of gold per ton at a cut off
grade of 0.026 ounces per ton and stripping ratio of 4.24 to
one.
    It said gold production will average 41,000 ounces per year
for the mine life and 99,000 ounces of silver per year.
    It said gold production in the first three years should
average 50,000 ounces per year.
    Operating costs are expected to average 201 dlrs per ounce
of gold for the mine life and 171 dlrs per ounce in the first
three years.


.I 13345
.C
acq
.W
MARK IV CORRECTS AGREEMENT WITH BAIRD <BATM>.
    WASHINGTON, March 20 - Mark IV Industries Inc <IV>, which
has said it may consider a bid to seek control of Baird Corp,
said Baird has not agreed to hold off on any defensive measures
without giving Mark IV at least 24 hours notice.
    In a filing with the Securities and Exchange Commission,
Mark IV corrected a statement it made yesterday in another SEC
filing in which it listed several agreements reached with
Baird, including that Baird would not take any anti-takeover
steps without providing at least 24 hours notice.
    Mark IV said it was later told by Baird that Baird had
given no such assurance.


.I 13346
.C
acq
.W
GENERALE DE BANQUE, HELLER BUY FACTORING UNIT.
    BRUSSELS, March 20 - Generale de Banque SA <GENB.BR> and
<Heller Overseas Corp> of Chicago have each taken 50 pct stakes
in factoring company SA Belgo-Factors, Generale de Banque said
in a statement.
    It gave no financial details of the transaction. SA
Belgo-Factors' turnover in 1986 was 17.5 billion Belgian
francs.


.I 13347
.C
earn
.W
<OSHAWA GROUP LTD> 4TH QTR NET.
    Toronto, March 20 -
    Shr 52 cts vs 51 cts
    Net 16.5 mln vs 16.2 mln
    Revs 870.2 mln vs 800.7 mln
    Year
    Shr 1.48 dlrs vs 1.29 dlrs
    Net 47.3 mln vs 41.0 mln
    Revs 3.53 billion vs 3.10 billion
    Avg shrs 31,867,658 vs 31,831,050


.I 13349
.C
earn
.W
VIRCO MANUFACTURING CORP <VIR> 4TH QTR NET.
    LOS ANGELES, March 20 - Qtr ended Jan 31
    Shr 67 cts vs 69 cts
    Net 1,525,000 vs 1,570,000
    Revs 41.2 mln vs 40.2 mln
    Year
    Shr 1.75 dlrs vs 1.54 dlrs
    Net 4,001,000 vs 3,522,000
    Revs 172.3 mln vs 168.7 mln
    Note: figures include losses from discontinued operations
in qtr of 309,000 dlrs, vs 253,000 dlrs a year earlier and for
the year of 309,000 dlrs vs 1,559,000 dlrs a year ago.


.I 13350
.C
earn
.W
******PAN AM CORP 4TH QTR LOSS 197.5 MLN DLRS VS PROFIT 241.4 MLN DLRS.
Blah blah blah.

.I 13352
.C
acq
.W
COOPER <CBE> ASKS FTC TO END ACQUISITION LIMITS.
    WASHINGTON, March 20 - Cooper Industries Inc asked the
Federal Trade Commission to vacate a 1979 order that requires
the company to get FTC approval before making certain
acquisitions, the FTC said.
    The order was issued as part of a settlement of FTC charges
that Cooper's merger with Gardner-Denver Co would lessen
competion and increase concentration in the gas compressor and
industrial air tool industries, the FTC said.
    The order requires that, until 1989, Cooper must get FTC
approval before acquiring companies in the natural gas
compressor or hand-held industrial pneumatic tool businesses.


.I 13356
.C
earn
.W
THOMPSON MEDICAL CO INC <TM> DECLARES QTLY DIV.
    NEW YORK, March 20 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 15
    Record March 30


.I 13357
.C
earn
.W
NEW ENGLAND ELECTRIC SYSTEM <NES> TWO MONTHS NET.
    WESTBOROUGH, Mass., March 20 - ended February
    Shr 69 cts vs 66 cts
    Net 37.7 mln vs 34.9 mln
    Revs 255.8 mln vs 288.8 mln
    Avg shrs 54.7 mln vs 53.2 mln
    12 mths ended Feb
    Shr 3.23 dlrs vs 3.17 dlrs
    Net 174.8 mln vs 166.3 mln
    Revs 1.4 billion vs 1.5 billion
    Avg shrs 54.1 mln vs 52.4 mln


.I 13358
.C
earn
.W
DILLARD DEPT STORES INC <DDS> DECLARES QTLY DIV.
    LITTLE ROCK, Ark., March 20 -
    Qtly div three cts vs three cts prior
    Pay May 1
    Record March 31


.I 13359
.C
earn
.W
PAN AM CORP <PN> 4TH QTR LOSS.
    NEW YORK, March 20 - 
    Shr loss 1.44 dlrs vs profit 1.79 dlrs
    Net loss 197.5 mln dlrs vs profit 241.4 mln
    Revs 797.3 mln vs 906.7 mln
    12 mths
    Shr loss 3.42 dlrs vs profit 45 cts
    Net loss 462.8 mln vs profit 51.8 mln
    Revs 3.04 billion vs 3.48 billion
    Note: Net includes special charges of 65 mln dlrs vs
special gain of 341 mln dlrs for the qtr and year.


.I 13360
.C
acq
.W
FTC EASES ALLIED-SIGNAL <ALD> UNIT RESTRICTIONS.
    WASHINGTON, March 20 - The Federal Trade Commission said it
eased a requirement that Allied-Signal Inc's Allied Corp
subsidiary get prior FTC approval before making certain
acquisitions in the high-purity acid market.
    The FTC said it ended the prior approval requirement
because Allied no longer has businesses covered by the order.
Other restrictions still apply, it said.
    The restrcitions stem from a 1983 order by the FTC settling
charges that Allied's 1981 acquisition of Fisher Scientific Co
reduced competition in three high-purity acid markets.


.I 13361
.C
earn
.W
SAN JUAN BASIN ROYALTY <SJT> HIKES DISTRIBUTION.
    FORT WORTH, Tex., March 20 -
    Cash distribution 4.2621 cts vs 3.2384 cts prior
    Pay April 14
    Record March 31
    NOTE: Company's full name is San Juan Basin Royalty Trust.


.I 13362
.C
earn
.W
SHL SYSTEMHOUSE INC <SHKIF> 2ND QTR FEB 28 NET.
    OTTAWA, March 20 -
    Shr 23 cts vs nine cts
    Net 5,700,000 vs 1,920,000
    Revs 35.5 mln vs 19.8 mln
    1st half
    Shr 41 cts vs 17 cts
    Net 10.0 mln vs 3,100,000
    Revs 69.3 mln vs 36.7 mln
    NOTE: Share adjusted for two-for-one stock split approved
in December 1986.
    Net includes tax credits of 2,970,000 dlrs vs 980,000 dlrs
in quarter and 5,210,000 dlrs vs 1,590,000 dlrs in half.
    Backlog 230 mln dlrs vs 147 mln dlrs at start of fiscal
year and 148 mln dlrs at the end of the first quarter.


.I 13363
.C
lead;zinc;
.W
U.K. LEAD AND ZINC OFFTAKE RISES IN JANUARY.
    LONDON, March 20 - U.K. Consumption of lead and zinc in all
forms during January rose to 26,314 and 18,778 tonnes, from
24,967 and 17,929 tonnes respectively in December, latest
figures by the World Bureau of Metal Statistics (WBMS) show.
    Refined lead consumption rose to 23,992 tonnes from 23,194,
while scrap offtake was 2,322 tonnes against 1,773.
    Slab zinc consumption was 14,257 tonnes against 14,190
during December, while offtake of scrap and re-melted metal was
4,521 tonnes against 3,739.
    Meanwhile production of refined lead in January rose to
28,188 tonnes from 23,693 in December, but slab zinc production
fell to 4,490 tonnes from 5,793, the WBMS figures showed.
    Stocks of slab zinc totalled 14,780 tonnes, down from
December's 15,008.


.I 13364
.C
earn
.W
PHOTRONIC LABS INC <PLAB> 1ST QTR JAN 31 NET.
    BROOKFIELD CENTER, Conn., March 20 -
    Shr 10 cts vs seven cts
    Net 249,143 vs 175,476
    Sales 3,034,010 vs 2,745,288


.I 13366
.C
earn
.W
PERMIAN BASIN ROYALTY <PBT> HIKES DISTRIBUTION.
    FORT WORTH, Tex., March 20 -
    Cash distribution 3.9737 cts vs 3.0577 cts
    Pay April 14
    Record March 31
    NOTE: Trust's full name is Permian Basin Royalty Trust.


.I 13368
.C
acq
.W
UNIVERSAL RESOURCES <UVR>HOLDERS APPROVE MERGER.
    DALLAS, March 20 - Universal Resources Corp said its
shareholders approved the merger of the company with Questar
Corp <STR>.
    Separately, Universal said it will redeem its 15.75 pct
debentures due December 15, 1996, on April 19, at 104.8 pct of
face amount plus accrued interest.
    Universal said it will operate as a wholly owned unit of
Questar under its current name. Under terms of the merger,
which took effective today, Universal said its shareholders
will receive three dlrs a share in cash.
    It said its stock will no longer trade on the AMEX.


.I 13369
.C
earn
.W
ENDOTRONICS <ENDO> HALTED PENDING NEWS RELEASE.
    MINNEAPOLIS, March 20 - Endotronics Inc, halted at 1-3/4 on
NASDAQ pending release of a news report, on Monday said it was
expecting "substantial losses" for the quarter ending March 31,
1987 and the fiscal year ending Sept 30, 1987.
    The company had cited a dispute over payment by Yamaha Inc,
one of its Japanese distributors, over payment of a promissory
note for 3,686,000 dlrs in overdue accounts.


.I 13371
.C
earn
.W
TEXAS INSTRUMENTS INC <TXN> SETS QUARTERLY.
    DALLAS, MArch 20 -
    Qtly div 50 cts vs 50 cts prior
    Pay April 20
    Record March 31


.I 13372
.C
earn
.W
SOUTHEAST BANKING CORP <STB> DECLARES QTLY DIV.
    MIAMI, Fla., March 20 -
    Qtly div 22 cts vs 22 cts prior
    Pay April 10
    Record March 30


.I 13375
.C
gas;crude;
.W
FTC URGES VETO OF GEORGIA GASOLINE STATION BILL.
    WASHINGTON, March 20 - The Federal Trade Commission said
its staff has urged the governor of Georgia to veto a bill that
would prohibit petroleum refiners from owning and operating
retail gasoline stations.
    The proposed legislation is aimed at preventing large oil
refiners and marketers from using predatory or monopolistic
practices against franchised dealers.
    But the FTC said fears of refiner-owned stations as part of
a scheme of predatory or monopolistic practices are unfounded.
It called the bill anticompetitive and warned that it would
force higher gasoline prices for Georgia motorists.


.I 13376
.C
acq
.W
ARMSTRONG WORLD <ACK> UNIT BUYS PLANT.
    THOMASVILLE, N.C., March 20 - Armstrong World Industries
Inc said its Gilliam Furniture affiliate has purchased a
130,000 square foot building in Troutman, N.C., for undisclosed
terms.
    It said the new plant is expected to be in operation before
year-end and and will more than double Gilliam's production
capacity for upholstered furniture.


.I 13378
.C
earn
.W
******HUDSON'S BAY CO YEAR OPER SHR PROFIT 32 CTS VS LOSS 1.23 DLRS.
Blah blah blah.

.I 13379
.C
earn
.W
******COOK UNITED INC EXPECTS LOSS OF 16 MLN DLRS FOR FISCAL 1987.
Blah blah blah.

.I 13380
.C
earn;acq;
.W
******HUDSON'S BAY CO HAD 1986 WRITEDOWN OF 40.4 MLN DLRS MAINLY ON STAKE IN DOME PETROLEUM.
Blah blah blah.

.I 13381
.C
rubber
.W
******U.N. Conference formally adopts new International Natural Rubber Agreement - chairman.
Blah blah blah.

.I 13382
.C
earn
.W
YORK FINANCIAL CORP <YFED> DECLARES QTLY DIV.
    YORK, Pa., March 20 -
    Qtly div 17 cts vs 17 cts prior
    Pay May five
    Record April 20


.I 13383
.C
acq
.W
******COOK UNITED INC IN TALKS TO SELL STAKE TO PRIVATE INVESTORS.
Blah blah blah.

.I 13385
.C
earn
.W
COMBINED INT'L <PMA> RAISES PAYOUT, VOTES SPLIT.
    CHICAGO, March 20 - Combined International Corp said its
board voted to increase the quarterly dividend  7.1 pct to 60
cts a share from 56 cts payable May 26, record May 12.
    It said directors also approved a two-for-one stock split,
subject to approval by shareholders of a proposed capital stock
amendment at the annual meeting in April. The record and pay
dates would be announced later, it said.


.I 13386
.C
acq
.W
AMERICAN CABLESYSTEMS <ACN> TO BUY CABLE SYSTEM.
    BEVERLY, Mass., March 20 - American Cablesystems Corp said
it agreed in principal to buy a cable television system in Los
Angeles County from Heritage Communications Inc <HCI> for 15.5
mln dlrs.
    The company said the system being purchased serves about
12,000 subscribers in the towns of Compton, South El Monte,
Hawaiian Gardens and the communities of Willowbrook, Athens,
Firestone, Florence and East Compton.
    It said the acquisition will bring to seven the number of
cable systems it owns, manages or has agreed to buy in the Los
Angeles area.


.I 13387
.C
earn
.W
YORK FINANCIAL <YFED> SPLITS STOCK.
    YORK, Pa., March 20 - York Financial Corp, parent company
of York Federal Savings and Loan Association, said its board of
directors declared a five-for-four stock split in the form of a
25 pct stock dividend.
    The company said it will distribute the split on May 5, to
shareholders of record April 20.


.I 13388
.C
acq
.W
CHEMLAWN <CHEM> HAS NO COMMENT ON NEW OFFER.
    NEW YORK, March 20 - ChemLawn Corp said it had no comment
on a sweetened offer from Waste Management Inc <WMX>.
    Waste Management amended its 27 dlr per share tender offer,
raising it to 35 dlrs per share.
    ChemLawn had rejected Waste Management's earlier 27 dlr per
share offer, saying it was an undervalued bid. ChemLawn earlier
told its shareholders not to tender to Waste Management.
    ChemLawn rose 1-7/8 to 36 in over-the-counter trading.


.I 13390
.C
earn
.W
ESSO SAF <ESSF.PA> YEAR ENDED DEC 31 1986.
    PARIS, March 20 -
    Net profit 305 mln francs vs 258 mln.
    Net dividend 25 francs vs 20 francs.
    Operating loss 696 mln francs vs 1.46 billion.
    Note - The company, which is the French subsidiary of Exxon
Corp. <XON.N>, said its net profit result included the
reintegration of 1.2 billion francs of provisions for exchange
fluctuations.


.I 13391
.C
earn
.W
PAN AM'S <PN> MAIN UNIT TO REPORT SMALLER LOSS.
    NEW YORK, March 20 - Pan Am Corp said its largest division,
the Atlantic, will report a first quarter loss that will be
substantially lower than that reported a year ago.
    In the 1986 1st qtr, Pan Am reported a net loss of 118.4
mln dlrs, which included foreign exchange losses of 19.3 mln.
The company did not say how much the Atlantic division lost.
    Pan Am also said it is encouraged by passenger traffic
results so far this year as well as booking trends.
    In January and February, the airline said total systemwide
revenue passenger miles were up five pct and 11 pct,
respectively, over the same months last year.
    It also said that based on current trends, its largest
division should report vastly improved second-quarter traffic
compared to last year, which resulted in a load factor of 45.7
pct for the second quarter of 1986.
    Pan Am also said its principal subsidiary, Pan American
World Airways, had a 1986 net loss of 469.3 mln dlrs, compared
with a profit of 38.7 mln dlrs in 1985, which included a gain
of 341 mln dlrs for the sale of its Pacific Division. It said
the airline's operating loss for the year was 325.5 mln dlrs
compared with a operating profit of 196.5 mln dlrs in 1985.


.I 13392
.C
earn;acq;
.W
COOK <CCF> TO POST LOSS, SELL STAKE.
    CLEVELAND, OHio, march 20 - Cook United INc said it expects
to report a loss a loss of 16 mln dlrs, before an extraordinary
credit of 44 mln dlrs resulting from its Chapter 11
reorganization, on sales of 217 mln dlrs for the year ended
January 31, 1987.
    For 1986, Cook reported a loss of 30.8 mln dlrs on sales of
257 mln dlrs for the prior year.
    Cook also said it began preliminary talks with private
investors looking to buy a stock position in order to provide
Cook with additional cash and assist its posture in its
negotation with its banks.
    Cook is negotiating with its bank lenders and private
sources for a borrowing facility to relieve its current working
capital requirements.
    Cook said it believes the reasons for its losses since
OCtober have been identified and are mostly non-recurring.
    Shutting down 12 unprofitable stores since November has   
effectuated cost controls and improved merchandising, it said.
    It anticipates the turnaround will contine and that
profitability with be restored. Cook now operates a total of 29
stores.


.I 13393
.C
earn
.W
ENDOTRONICS <ENDO> TARGET OF INVESTIGATION.
    MINNEAPOLIS, March 20 - Endotronics Inc said it is the
target of a formal private investigation by the Securities and
Exchange Commission as well as the Federal Bureau of
Investigation.
    The company also said its independent accounts, Peat,
Marwick, Mitchell and Co, served notice that its report on
Endotronics' financial statements as of Sept 30, 1986 and for
the year then ended should no longer be relied upon.
    Endotronics said the notice from its accountants stated 
"we cannot satisfy ourselves as to the true facts of the
situation to a degree necessary to continue to be associated
with such consolidated financial statements."
    Endotronics recently reported that it was reviewing the
need to establish a reserve for all or a portion of
approximately 3,686,000 dlrs in overdue accounts receivable and
to assess the impact, if any, on prior period financial
statements in light of a dispute with one of its Japanese
distributors over payment of the overdue accounts.
    Endotronics said it was providing documentation to the
Securities and Exchange Commission in connection with that
agency's investigation.
    It also said Michael Gruenberg resigned from the company's
board of directors.



.I 13394
.C
rubber
.W
UN CONFERENCE FORMALLY ADOPTS NEW RUBBER PACT.
    GENEVA, March 20 - A new International Natural Rubber
Agreement, INRA, was formally adopted by a United Nations
Conference today.
    The new accord is due to replace the current one, which
expires in October.
    Conference chairman Manaspas Xuto of Thailand said the
formal adoption represented "a historic moment."
    The latest round of talks, which began March 9, represented
the fourth attempt to negotiate a new INRA in nearly two years.
Xuto described the negotiations as "by no means easy, and we
often faced problems."
    The new pact is due to enter into force provisionally when
ratified by countries accounting for 75 pct of world net
exports and 75 pct of net imports.
    The new INRA will enter into force definitively when
governments accounting for at least 80 pct of net exports and
80 pct of net imports have ratified it.
    It will be open for signature from May 1 to December 31
this year.
    It is expected that provisional entry into force will take
at least 12 to 14 months from now, delegates said.
    During the hiatus between the two agreements buffer stock
operations will be suspended, but the International Natural
Rubber Council will remain in place.
    Xuto told the conference both the 1979 agreement and its
successor were aimed at meeting the needs of producers and
consumers of natural rubber over the long term.
    Both had interest in stabilising prices and supplies, Xuto
added. He also praised "the spirit of 'give' and 'take' that
prevailed throughout this session."
    Ahmed Farouk of Malaysia, speaking on behalf of producers,
said the conclusion of the new pact showed that the mutuality
of interests between producers and consumers is now as valid as
it was when negotiations of the first agreement began in the
1970s.
    Farouk said the ability to manage inventories on the basis
of predictable stable prices is "a vital consideration for
multinational tire companies, whether or not consuming
countries as a whole claimed to be no longer so seriously
concerned about security of the rubber supply."
    He said producers considered that the 1979 agreement had
served the purpose for which it was created.
    Farouk urged consuming countries to promote early accession
to the new pact "to avoid an undue gap between the old and the
new.
    Gerard Guillonneau of France, speaking for consumers,
agreed that the 1979 agreement had worked relatively well.
    But as economic conditions had changed, he said, consumers
had been led to make proposals for improving its functioning.
    He added that the adoption of the new agreement "attests to
the importance of rubber and confidence in the rubber industry."


.I 13395
.C
earn
.W
ADVANCED INSTITUTIONAL <AIMS> CUTS WORKFORCE.
    SYOSSET, N.Y., March 20 - Advanced Institutional Management
Software Inc said it has cut its workforce to 53 from 74 and
closed its Atlanta office to cut expenses and improve
profitability.
    The company said it is also in the process of reducing its
office space in four of its six offices nationwide.
    Advanced also said it has named executive vice president
Steven B. Sheppard chief operating officer.
    The company said president and chief executive officer
Morris Moliver had been chief operating officer as well.


.I 13396
.C
earn
.W
SUN STATE SAVINGS <SSSL> SEES HIGHER EARINGS.
    PHOENIX, Ariz., March 20 - Sun State Savings and Loan
expects to report an earnings increase this year over 1986,
Chairman Edward Janos told shareholders at the company's annual
meeting.
    In a statement, Janos said core earnings are expected to
average 1.5 mln dlrs per quarter, or six mln dlrs for the year,
while sales of real estate joint ventures will add another five
mln during the year.
    In 1986, Sun State reported earnings of 9,427,000 dlrs, or
2.05 dlrs per share.


.I 13397
.C
earn
.W
ATT <T> CHAIRMAN SAYS DIVIDEND WILL NOT BE CUT.
    BOSTON, March 20 - American Telephone and Telegraph Co does
not plan to reduce its regular quarterly dividend of 30 cts a
share on its common stock, said James E. Olson, chairman.
    "It has been the intent to set the dividend at a level so
that it could be sustained through the ups and downs of the
business cycle," Olson told a meeting of securities analysts.
    "We see no reason to change that policy," he said.
    Although ATT will maintain its current dividend, Olson said
the company wants to decrease the percentage of earnings paid
in dividends by increasing earnings.
    Industry analysts had speculated that ATT might cut its
common dividend, especially after the company posted a fourth
quarter net loss of 1.17 billion dlrs and earned only five cts
a share for the full year.
    The loss included a one-time restructuring charge of 1.7
billion dlrs.
    Olson said he expects ATT's cash flow to remain strong
despite the poor earnings.


.I 13398
.C
tin
.W
MAJOR TIN CENTERS PARALYSED BOLIVIA UNION SAYS.
    LA PAZ, March 20 - A strike by 9,000 miners employed by the
state corporation Comibol has paralysed tin production in the
major centers of Huanuni, Corocoro, Siglo, Catavi and Colquiri,
the Conflicts Secretary of the Bolivian Miners Federation,
Cristobal Aranibar, told Reuters.
     The strike began at midnight to press demands for higher
wages and more funds for the nationalised mining industry.
     The miners federation left the door open to negotiations
with the government but "only if the authorities show their
intention to find solution to our demands", Aranibar said.
    The government of president Victor Paz Estenssoro, faced
with mounting social unrest against its economic policies, has
said the miners strike was part of a campaign to discredit it
during the visit of West German president, Richard von
Weizsaecker, who arrives today for a four-day official visit.
    The government froze salaries as part of its efforts to
pull Bolivia out of a deep economic crisis. According to
central bank forecasts inflation will reach an annual 10 pct
rate versus up to 20,000 pct in 1985.
     In addition to the miners' strike, about 1,000 railway
factory workers of the bolivian labour organization (COB) began
a second day of a hunger strike in the country's main cities to
press for substantial wage increases, a union leader said.


.I 13399
.C
earn
.W
******ECHLIN INC 2ND QTR SHR 24 CTS VS 20 CTS.
Blah blah blah.

.I 13400
.C
earn
.W
ALLIED-LYONS SEES HIRAM WALKER PROFITS RISING.
    TORONTO, March 20 - <Allied-Lyons PLC> sees rising profits
from 51-pct-owned liquor producer Hiram Walker-Gooderham and
Worts in the current fiscal year ending in early March, 1988,
chairman Derrick Holden-Brown said in a speech prepared for
delivery to Toronto analysts.
    "We anticipate that Hiram Walker profits will be well above
those of the plateau years," he said, referring to the four
years up to 1985.
    "In other words, we will have regained the 1985 position
and improved on it," Holden-Brown said.
    Allied-Lyons won control of Hiram Walker-Gooderham last
year in a battle against Gulf Canada Corp, which finally got a
49 pct stake after an out-of-court settlement.
    Hiram Walker Resources Ltd, the previous owner, reported
liquor profits of 282 mln Canadian dlrs in the fiscal year
ending Sept. 30, 1985, 278 mln dlrs in 1984, 267 mln in 1983,
294 mln in 1982 and 280 mln in 1981.
    Holden-Brown said Allied-Lyons' financial results for the
fiscal year just ended March seven would include three months
of Hiram Walker-Gooderham profits, but he did not provide
actual figures.
    He said Hiram Walker-Gooderham's profit improvement in the
current year will come from a previously announced
reorganization put into effect March 1, 1987 and a close
partnership with Allied-Lyons' existing Allied Vintners
division.


.I 13401
.C
earn
.W
ECHLIN INC <ECH> 2ND QTR FEB 28 NET.
    BRANFORD, Conn., March 20 -
    Shr 24 cts vs 20 cts
    Net 11,784,000 vs 8,302,000
    Rev 269.1 mln vs 211.9 mln
    Six months
    Shr 48 cts vs 40 cts
    Net 23,191,000 vs 16,556,000
    Rev 517.5 mln vs 429.3 mln
   


.I 13402
.C
earn
.W
******AMERICAN CAN SEES HIGHER 1ST QTR, YR NET.
Blah blah blah.

.I 13404
.C
earn
.W
<HUDSON'S BAY CO> 4TH QTR NET.
    Toronto, March 20 - ended January 31
    Oper shr profit 3.98 dlrs vs profit 4.35 dlrs
    Oper net profit 123.6 mln vs profit 108.3 mln
    Revs 1.88 billion vs 1.76 billion
    Year
    Oper shr profit 32 cts vs loss 1.23 dlrs
    Oper net profit 33.0 mln vs loss 9,055,000
    Revs 5.69 billion vs 5.27 billion
    Note: 1986 excludes writeoff of 40.4 mln dlrs, primarily
due to investment in Dome Petroleum Ltd <DMP>.


.I 13405
.C
earn
.W
<GENDIS INC> 4TH QTR JAN 31 NET.
    WINNIPEG, Manitoba, March 20 -
    Shr 53 cts vs 61 cts
    Net 9,909,000 vs 11,489,000
    Revs 185.9 mln vs 161.5 mln
    Year
    Shr 1.20 dlrs vs 1.37 dlrs
    Net 22,522,000 vs 25,667,000
    Revs 588.5 mln vs 521.7 mln


.I 13408
.C
earn
.W
<BIFLYX> 2ND QTR DEC 31 NET.
    GARDEN GROVE, Calif., March 20 -
    Shr nil vs nil
    Net profit 24,000 vs loss 66,000
    Revs 235,000 vs 93,000
    Six mths
    Shr nil vs nil
    Net profit 40,000 vs loss 153,000
    Revs 394,000 vs 99,000


.I 13409
.C
coffee
.W
IBC PRESIDENT LEAVES FOR PRODUCER MEETING - IBC.
    SAO PAULO, March 20 - Jorio Dauster, president of the
Brazilian Coffee Institute, IBC, left Brazil early today to
attend a weekend meeting of Latin American coffee producers in
Managua, an IBC official said.
    Carlos Brasil, an adviser to the IBC president, said
Dauster had left Rio de Janeiro for Managua early this morning.
    There were rumours on the London coffee market earlier
today that Dauster would not attend the meeting.


.I 13412
.C
acq
.W
MOUNTAIN VIEW ACQUIRES MARATECH COMMUNICATIONS.
    GOLDEN VALLEY, MINN., March 20 - (Mountain View Investment
Corp), Phoenix, Ariz., said it acquired Maratech Communications
Cos Inc.
    Under terms of the transaction, the present directors of
Mountain View have resigned and have elected directors of
Maratech as new directors of Mountain View.
    It said a combined shareholders' meeting will soon be held
to vote on the acquisition.


.I 13414
.C
earn
.W
AMERICAN CAN <AC> SEES HIGHER YEAR NET.
    NEW YORK , March 20 - American Can Co chairman Gerald Tsai
said the company will record higher earnings in the first
quarter and for the full year.
    Addressing analysts, Tsai said "First quarter results have
been extremely encouraging and results for all of 1987 will
show significant improvement over 1986."
    American Can earned 196.3 mln dlrs, or 3.21 dlrs per share,
adjusted for a two-for-one stock split, in 1986.
    In the 1986 first quarter, the company reported net income
of 67.5 mln dlrs, including one-time gains from sale of assets,
or 2.30 dlrs per share, before the stock adjustment.
    In the 1987 first quarter, American Can will record a
one-time gain of 28 cts per share from the sale of shares in
its Musicland Group subsidiary. The gain is slightly higher
than the expected gain the company predicted in February
because additional shares of the unit were sold.
    In response to a question, Tsai said American Can's
investment in Jefferies and Co is "very small".
    "We treat it as just another passive investment," he said.
According to press reports, American Can owns 20 pct of
Jefferies and is its largest single shareholder.
    Yesterday, Boyd Jefferies, chairman and founder of the
brokerage firm bearing his name, resigned from the firm and
said he would plead guilty to two felony charges for breaking
securities laws.
    Responding to another question, Tsai said AIDS-related
claims were a small portion of claims made with American Can's
insurance subsidiaries in 1986.


.I 13415
.C
earn
.W
CENTRAL BANKING SYSTEM INC <CSYS> QTLY DIVIDEND.
    SAN FRANCISCO, March 20 -
    Qtly div ten cts vs ten cts
    Pay April 15
    Record April 1


.I 13416
.C
acq
.W
CHARTER-CRELLIN <CRTR> TO ACQUIRE SEBRO PLASTICS.
    NEW YORK, March 20 - Charter-Crellin Inc said it signed a
letter of intent to acquire all outstanding shares of <Sebro
Plastics Inc's> capital stock.
    Charter-Crellin, a molded plastic product maker, said Sebro
is a precision molder of engineered specialty plastic products
for the automotive industry.
    The company said the deal is subject to the execution of a
definitive purchase agreement.


.I 13417
.C
acq
.W
NEW YORK STATE ELECTRIC <NGE> ENDS ACQUISITION.
    BINGHAMTON, N.Y., March 20 - New York State Electric and
Gas Corp said it has terminated its effort to acquire Corning
Natural Gas Corp.
    It cited as reasons the uncertain regulatory climate in New
York State and the depresed price of New York State Electric
stock which has been caused by the delay in the Nine Mile Point
Unit Two nuclear plant.
    The company had said in December that it had been
interested in acquiring Corning Natural Gas.


.I 13418
.C
acq
.W
BLACK HAWK MINING CAN'T EXPLAIN STOCK RISE.
    TORONTO, March 20 - <Black Hawk Mining Inc> said it knows
of "no major activities" to account for the recent rise in the
company's stock price.
    The shares rose 11 cts to 88 cts on the Toronto Stock
Exchange yesterday.
    The company added that its application for its proposed
acquisition of <Platinova Resources Ltd> and financings are
still before the listing committee of the stock exchange.


.I 13420
.C
acq
.W
SENATOR WANTS STRONGER AIR MERGER REGULATION.
    WASHINGTON, March 20 - The chairman of the Senate antitrust
subcommittee said the Transportation Department was allowing
too many airline mergers and proposed its authority be
transfered to the Justice Department.
    "The Transportation Department's antitrust enforcement has
been disastrous, permitting rampant merger mania," Ohio
Democrat Howard Metzenbaum said in a statement.
    "The nine largest airlines now control 94 per cent of the
market. That's bad for competition and bad for the consumer,"
he said.
    Metzenbaum said he introduced a bill to transfer antitrust
authority over airline mergers to the Justice Department in
hopes it would more restrictive than the Transportation
Department.


.I 13422
.C
earn
.W
GPU <GPU> SEES TMI-2 FUEL PROBLEMS RESOLVED.
    PARSIPPANY, N.J., March 20 - General Public Utilities Corp
said the water-clarity problem delaying the removal of fuel
from the damaged Unit Two of the Three Mile Island nuclear
power plant appears to have been resolved.
    The company said the slower than expected removal of the
fuel, which has been primarily due to the water-clarity
problems, is now expected to extend fuel removal into 1988.
    A spokesman said the company had previously expected this
to be completed by the end of 1987 and has not estimated how
far into 1988 the process will extend. It still expects to
complete the entire clean-up by the end of 1988, he added.
    GPU said its auditors, Coopers and Lybrand, again qualified
its opinion of GPU's financial statements, adding the recovery
of TMI-2 decommissioning costs to the unresolved issues leading
to the qualified opinion.
    GPU said its operating subsidiaries will seek to recover
the costs of decommissioning TMI-2 in future rate proceedings.
    As in past years, the qualified opinion continues to list
other uncertainties associated with the accident, which damaged
TMI-2 -- the recovery of cleanup costs and any payments for
damages that might exceed available insurance proceeds.


.I 13423
.C
earn
.W
ECHLIN<ECH> EXPECTS CONTINUED PROFIT GROWTH.
    BRANFORD, Conn., March 20 - Echlin Inc said it expects
further earnings increases for the second half of fiscal 1987
ending in August due to unit sales growth and improved
operations.
    "As expected, market conditions have improved so that
demand for automotive replacement parts is gradually and
steadily expanding," Echlin president Frederick Mancheski said.
    Earlier, Echlin reported first half fiscal 1987, ended Feb
28, earnings of 23.2 mln dlrs, or 48 cts a share, up from 16.6
mln, or 40 cts a share, in the prior year's first half.
    Also, Echlin said it had second quarter net income of 11.8
mln dlrs, or 24 cts per share, compared with net income of 8.3
mln dlrs, or 20 cts a share, in fiscal 1986's second quarter.


.I 13424
.C
earn
.W
ATT <T> COST-CUTTING EFFORTS ON TARGET.
    BOSTON, March 20 - American Telephone and Telegraph Co
chairman James E. Olson said he is very pleased with the
company's efforts so far to cut costs.
    He told a meeting of securities analysts that, although the
company is not yet at point in its cost-cutting drive to
improve profit margins, it is "on the right track."
    Olson said ATT's cash flow was "very strong in the first
two months of the year, better than budgeted."
    While Olson does not know if the company's earnings and
revenues will improve by yearend, he said ATT is "moving in the
proper direction."
    For 1986, ATT's earnings dropped to 139 mln dlrs, or five
cts a share, on revenues of 34.1 billion dlrs, from 1.56
billion dlrs, or 1.37 dlrs a share, on revenues of 34.4 billion
dlrs in 1985.
    During 1986 ATT took 3.2 billion dlrs in charges from
expenses related to reducing its work force by 32,000.


.I 13425
.C
earn;acq;
.W
HUDSON'S BAY WRITEOFF MAINLY DUE TO DOME STAKE.
     Toronto, March 20 - <Hudson's Bay Co> said a writeoff of
40.4 mln dlrs, or 1.39 dlrs per share, that it took in 1986 was
mainly due to its investment in Dome Petroleum Ltd <DMP>.
     The company reported an operating profit of 33.0 mln dlrs,
or 32 cts per share, for fiscal 1986, compared to an operating
loss of 9,055,000 dlrs, or 1.23 dlrs per share, in the previous
year.
     Hudson's Bay holds about four mln shares of Dome's 10 pct
series one cumulative subordinate convertible preferred shares.
    Last March, Dome suspended payment of dividends on all
preferred shares until June 1, 1987. The shares give the holder
the right to convert to Dome common shares at 3.33 dlrs per
share.
    Dome has the right to force conversion if Dome common
reaches 3.885 dlrs per share. Dome is trading at 1.12 dlrs per
share, down one ct, today on the Toronto Stock Exchange.
    Hudson's Bay also said it had an increase in 1986 in retail
operating profit to 185.3 mln dlrs from 111.4 mln dlrs, but
that was partially offset by an increase of 14.9 mln dlrs in
interest costs and 25.3 mln dlrs in taxes.
     Hudson's Bay also said its Markborough properties
subsidiary had an operating profit of 108.6 mln dlrs, up from
98.8 mln dlrs the year before.
    Profit from non-Markborough real estate was 23.5 mln dlrs
in 1986, down from 27.6 mln dlrs a year ago.
    Operating profit from natural resources was 4.2 mln dlrs,
up 1.2 mln dlrs from the prior year. Pensions costs were
reduced by 34.9 mln dlrs due to an accounting change. Total
debt declined during the year by 251 mln dlrs to 2.28 billion
dlrs and debt to equity ratio improved to 1.8 to one from 2.1
to one.


.I 13428
.C
trade
.W
JAPAN OPENS HOME MARKET TO U.S. FISH.
    WASHINGTON, March 20 - Japan has agreed to drop barriers to
American-caught herring and pollock, opening the way for
shipments that could reach 300 mln dlrs annually, U.S. Trade
Representative Clayton Yeutter announced.
    Yeutter said the accord was reached after extensive
bilateral negotiations that ended earlier today in Tokyo.
    He said the Commerce Department estimated U.S. shipments of
processed pollock products and herring should rise to 85 mln
dlrs this year and to more than 300 mln dlrs annually in later
years.
    There was no immediate assessment of the value of current
U.S. shipments, but officials said the pact would lift quotas
to the point that Americans would be able to ship nearly all
the pollock and herring ordered by Japanese firms.
    At the same time, Yeutter said Washington was temporarily
suspending a complaint with the General Agreement on Tariffs
and Trade (GATT) that Japan was unfairly curbing imports of the
two fish.
    He said the complaint would be reviewed later this year
after an assessment to see if Japan lived up to the agreement.


.I 13433
.C
acq
.W
FIRST FINANCIAL <FFMC> ACQUIRES TEL-A-DATA.
    ATLANTA, March 20 - First Financial Management Corp said it
acquired the data processing contracts and certain related
assets of Tel-A-Data L.P. for about 5.7 mln dlrs cash plus the
assumption of certain liabilities of about 2.5 mln dlrs.
    Tel-A-Data serves about 50 bank and thrift institutions
through a processing center in Lombard, Illinois.
    First Financial offers data processing services to over 800
financial institutions through 35 data processing centers.


.I 13434
.C
earn
.W
MCM CORP <MCMC> SETS QUARTERLY.
    RALEIGH, N.C., March 20 -
    Qtly div six cts vs six cts prior
    Pay April 10
    Record March 31


.I 13435
.C
earn
.W
THACKERAY CORP <THK> YEAR LOSS.
    NEW YORK, March 20 -
    Oper shr loss 22 cts vs loss 20 cts
    Oper net profit 1,013,000 vs profit
    2,219,000
    Sales 77.0 mln vs 74.0 mln
    Avg shrs 5,107,401 vs 5,361,793


.I 13438
.C
grain;corn;cotton;rice;
.W
CONCERN OVER "EL NINO" IN PERU - USDA REPORT.
    WASHINGTON, March 20 - There are heightened fears that "El
Nino" may be returning to Peru with an intensity approaching the
1983 disaster, which affected the weather on several continents
and caused widespread damage through floods and drought, the
U.S. Agriculture Department's officer in Lima said in a field
report.
    Continued heavy rains in the northern coastal area,
flooding of several major rivers and mud slides have led to
increased concern, the report, dated March 17, said.
    However, it said official sources still believe that this
year's El Nino will have only weak to moderate intensity.
    EL Nino is a phenomenon involving a shift in winds and
waters in the pacific.
    The USDA report said that so far the El Nino now being
experienced has not had an overall negative impact on
agricultural production.
    Excessive rains in the Piura Pima cotton area may reduce
yields by about 20 pct due to excessive growth too early in the
crop cycle.
    Also insect damage to crops could be more extensive where
excessive moisture exists, it said.
    However, the El Nino has resulted in a much improved supply
of irrigation water in the major dams which will improve
prospects for many crucial crops such as rice and corn, and
slow the decline in sugar production, it said.
    If El Nino picks up momentum, Peru's fishing industry could
receive a setback. But trade sources still believe the fish
catch for industrial processing will reach 5.5 mln tonnes in
1987, almost 20 pct above last year, the report said.
    Water temperatures in the northern fishing areas are three
to four degrees centigrade above normal but still not high
enough to drive the fish to cooler southern waters, it said.
    It said there is still the outside chance that El Nino will
intensify and carry on through late March, April and May
causing problems as crops approach harvest.
    "There appears to be no way to project the course of El Nino
-- only time will tell," the report said.


.I 13439
.C
earn
.W
ALLIED-LYONS SEES SUBSTANTIAL SECOND HALF GROWTH.
    TORONTO, March 20 - <Allied-Lyons PLC> will report
substantial growth in the second half of fiscal 1987 ended
March 7, chairman Derrick Holden-Brown said in answer to
reporters' queries.
    "You will certainly see substantial growth in Allied-Lyons
in the second half," Holden-Brown said following a presentation
to Toronto securities analysts.
    Holden-Brown declined to say whether second half growth in
profit before taxes would exceed the 20.7 pct rise reported in
the first half. Allied-Lyons had first half profit of 148.0 mln
stg, up from 122.6 mln stg in the prior year.
    Allied-Lyons will also have a full year extraordinary cost
of slightly more than seven mln stg for defence costs
associated with Elders IXL Ltd's failed take-over bid for the
company, Holden-Brown also said.
    But that cost will be more than offset by an extraordinary
gain of about 60 mln stg on Allied-Lyons' sale of its 24.9 pct
interest in Australian brewers Castlemaine Toohey, he said.
    "So with Australians, you win some and you lose some. But
hopefully you win them all in the end," Holden-Brown said.
    Asked if he thought Allied-Lyons is vulnerable to other
take-over attempts, Holden-Brown replied: "No, I don't."
    "We must never be complacent and we must always be very
watchful, but I think we would be very expensive," he said.
    Holden-Brown said Allied-Lyons' share price to corporate
earnings ratio is now comparable with other leading companies
in the food and beverage industry.
    "That was not the case two years ago. If the Australians had
come a little bit earlier, they might have had more luck, I
think," Holden-Brown said.
    Holden-Brown said Allied-Lyons' move to acquire Hiram
Walker-Gooderham and Worts Ltd in March, 1986 during Elders
take-over bid for the company was "100 pct a growth action."
    "We knew when we did it that it could be misconstrued, and
that people almost inevitably would say (the acquisition was)
defensive, but it never was," Holden-Brown told reporters.
    Asked by securities analysts if Allied-Lyons plans a share
issue in Canada after acquiring a 51 pct interest in Hiram
Walker, Holden-Brown responded: "Plan might be too strong a
word. But I must say I do feel the need for Allied-Lyons to be
better known in Canada."


.I 13441
.C
orange
.W
******U.S. FROZEN ORANGE JUICE STOCKS - MARCH 1  102,618,000 GALLONS VS 97,111,000 YEAR AGO.
Blah blah blah.

.I 13442
.C
livestock;pork-belly;
.W
******U.S. COLD STORAGE STOCKS - MARCH 1 FROZEN PORK BELLIES - LBS - 34,471,000, VS A REVISED 34,900,000 ON FEB 1 AND 51,218,000 A YEAR AGO.
Blah blah blah.

.I 13443
.C
earn
.W
<DRYCLEAN USA> YEAR NET.
    MIAMI, March 20 -
    Shr 82 cts vs 63 cts
    Net 1,661,000 vs 1,251,000
    Revs 14.8 mln vs 11.6 mln


.I 13445
.C
livestock;pork-belly;
.W
COLD STORAGE REPORT FOR BELLIES NEUTRAL/NEGATIVE.
    CHICAGO, March 20 - Chicago Mercantile Exchange floor
traders' immediate reaction to the cold storage report for pork
bellies was neutral to slightly negative.
    Frozen pork belly stocks at 34.5 mln lbs on March 1
compared with a revised 34.9 mln lbs on February 1 for a net
out movement of 0.5 mln lbs.
    The number on hand compared with trade guesses of 33.5 to
36 mln lbs and the year ago figure of 51.2 mln lbs.
    Traders said the figure was toward the upper end of
expectations and may provide slight downward pressure because
of recent sharp gains in futures.


.I 13448
.C
earn;acq;
.W
BALLY <BLY> SEEN SELLING OFF HEALTH UNIT.
    BY SUSAN ZEIDLER, Reuters
    NEW YORK, March 20 - Bally Manufacturing Corp's proposed
public offering of 24 pct of its Health and Tennis Corp unit is
seen as the first step towards the sale of the entire unit,
analysts said.
    "In the longer-term horizon, Bally wants to concentrate on
its gaming businesses," said analyst Dennis Forst of Seidler
Amdec Securities Inc.
    Last week, Bally said it was considering the sale of
another non-casino unit, its Six Flags amusement park unit,
which analysts said could fetch about 300 mln dlrs.
    Bally spokesman Bill Peltier said "the company currently
has no hard plans to the sell any more of the health club
company, but in the long term we'll wait and see how the
offering goes."
    Once Bally's biggest revenue producer, the health club unit
had 1986 operating income of 60 mln dlrs on revenues of 456.2
mln dlrs, 28 pct of Bally's revenues. Analysts estimate the
unit could be sold for for 300-500 mln dlrs.
    Analysts said Bally's decision to offer shares in the unit
could be the first step to selling it.
    "It would seem obvious that an offering would decrease the
health club unit's debt, increase its cash flow and operating
income, making it an attractive buy to a third party," Steven
Eisenberg of Bear Stearns said.
    On Monday, Bally said it filed with the Securities and
Exchange Commission for an initial offering of 24 pct, or 5.8
mln shares, of the unit's common stock at 13-15 dlrs a share.
   About half the proceeds, 40 mln dlrs, will be used to reduce
parent Bally Manufacturing's debt which has swelled to 1.6
billion dlrs due to recent hotel acquisitions and the purchase
of shares from Donald Trump who had threatened a hostile
takeover, according to Bally treasurer Paul Johnson.
    Remaining proceeds from the stock offering and from a
separate offering of 50 mln dlrs of 20-year convertible
subordinated debt would be used to repay about 75 mln dlrs of
short term senior bank debt of the health chain unit, a Bally
spokesperson said.
    Analysts said Bally's health club unit's profits have
remained strong, but are skeptical about the industry's long
range prospects.
    "The fitness club industry, over the last 10 years, has
grown tremendously, but the question is whether its a fad or a
permanent part of our lifestyle," said Eisenberg of Bear
Stearns.
    Analysts said fitness clubs will likely flourish if the
public stays at its peak of health consciousness, but that
overcapacity is likely to occur as consumer enthusiasm wanes.
     In addition, "the returns in the fitness club industry are
just not as high as they are in the gaming industry," said one
analyst.
     There are about 6,500 fitness clubs in the U.S., excluding
clubs run by not-for-profit organizations, according to the
Association of Physical Fitness Centers who estimates it to be
an 8.0-billion-dlr-a-year industry.
     Asked if anyone has offered to buy the unit, which is the
nation's largest health club chain, Peltier said, "no one has
the money to offer to buy it."
    "The fitness industry is a fragmented industry with no
leader and there is a great opportunity for growth through
acquisition and then standardization," said Wayne LaChapelle,
chief financial officer of Livingwell INc <WELL>, the nation's
second largest fitness chain operator whih
    LaChapelle said Livingwell is always interested in
acquisition opportunities but "could not afford an acquisition
the size of Bally at this time."


.I 13449
.C
acq
.W
COMMERCIAL CREDIT <CCC> UNIT SELLS DIVISION.
    BALTIMORE, Md., March 20 - Commercial Credit Co said its
American Health and Life Insurance Co sold its ordinary life
insurance business to American National Insurance Co <ANAT>.
    American National will assume the business no later than
August 31, 1987, Commercial Credit said.
    The sale is part of a restructuring program begun by
Commercial Credit's subsidiary in late 1986, the company said.


.I 13451
.C
acq
.W
DELTA SAYS COURT ORDER WILL NOT DELAY MERGER.
    ATLANTA, March 20 - Delta Air Lines <DAL> said a court
order requiring Western Air Lines <WAL> to arbitrate with two
of its unions will not delay the April 1 merger between the two
airlines.
    The order, which was issued by the Ninth Circuit Court of
Appeals, requires Western to discuss with its two unions
whether Western's labor contracts will be binding for Delta,
Delta said.
    "Nevertheless, the court order could cause significant
personnel problems, including the possible delay of wage
increases Delta had planned to give the Western personnel on
April 1," Ronald Allen, Delta's president, said.
    Delta said it feels the court has erred and should
reconsider the order.


.I 13455
.C
wheat;grain;corn;
.W
ANALYST SAYS USSR WINTER GRAINS HURT BY WEATHER.
    MILWAUKEE, Wis., March 20 - The Soviet Union's winter grain
crop is likely to have suffered losses due to dry planting
conditions last fall and severe cold this winter, an analyst of
world weather and crop conditions said.
    Grain analyst and meteorologist Gail Martell, author of the
EF Hutton publication "Global Crop News," said in her latest
report that the Soviets may import more grain, possibly wheat,
from the U.S. due to potential crop damage.
    "Compared with last year, the outlook (for the Soviet
winter grain crop) is far more pessimistic," she said. "But
it's still too early to talk about disastrous losses. A lot
will depend on spring weather, not only for the outcome of the
troubled winter grain crop, but also for spring planting."
    Martell said the dry weather conditions last fall probably
prevented optimal seed germination for winter grains. Key wheat
growing areas of the southern Ukraine and North Caucasus
received on 25-35 pct of autumn precipitation, she said.
    The bitter winter cold temperatures -- which broke record
lows that had stood for four decades -- also may have taken its
toll on Soviet winter crops, she said.
    However, she noted that most of the southern grain belt had
ample snow cover, which should have well-insulated the majority
of crop areas from severe frost damage.
    The USSR has already bought 20 to 21 mln tonnes of grains
in the July 1986/June 1987 marketing year, primarily from
Canada, the European Community, Argentina and Australia,
Martell said.
    She cited a number of reasons besides possible crop
problems that might point to additional Soviet import demand.
    Last fall's dry weather may limit livestock grazing on
moisture-depleted pastures, while the cold winter weather
necessitated supplemental feeding to keep livestock healthy.
    Martell was also skeptical of a Soviet claim for a 1986
grain harvest of 210 mln tonnes, and said the Chernobyl
accident may have contaminated more grain than originally
thought and have to be made up with imports.
    However, she said the U.S. remains a supplier of last
resort for the Soviet Union, noting that the Soviets have only
just recently begun their first U.S. grain purchases of the
1986/87 season by buying 2.25 mln tonnes of corn.
    Martell cited USDA statistics showing that since the 1980
grain embargo the U.S. is only a major supplier of grain to the
USSR during years of heavy Soviet demand.
    In 1984/85, the U.S. supplied 41 pct of record Soviet grain
imports of 55.5 mln tonnes. But in 1985/86, the Soviet Union
bought 29.9 mln tonnes of grain and turned to the U.S. for only
24 pct of that total.
    While the USDA Soviet import target for grain for 1986/87
was 22 mln tonnes, many U.S. grain analysts have revised their
estimates of Soviet imports up to 25-28 mln tonnes, she said.


.I 13456
.C
acq
.W
INTEGRATED GENERICS <IGN> MAY SELL 10 PCT OF UNIT.
    BELLPORT, N.Y., March 20 - Integrated Generics Inc said it
is discussing with an unnamed pharmaceutical distributor the
sale of 10 pct of its A.N.D.A. Development Corp subsidiary for
200,000 dlrs.
    Integrated said its subsidiary, Biopharmaceutics, is
negotiating with the same unnamed distributor to sell it five
prescription drugs.
    The company said it can release no other details at this
time.


.I 13458
.C
reserves
.W
MEXICO'S RESERVES REACH EIGHT BILLION DLRS.
    NEW YORK, March 20 - Additional capital inflows of 1.5
billion dlrs so far this year have boosted Mexico's reserves to
about eight billion dlrs, director of public credit Angel
Gurria told reporters.
    Money has been coming back to Mexico because of improved
investor confidence and because a tight monetray policy has
forced credit-starved industries to repatriate capital. Inflows
totalled a billion dlrs in fourth-quarter 1986.
    Gurria said Mexico is not accumulating reserves for the
sake of it. He said its new loans will increase the pool of
funds available for badly needed investment.
    Once the first tranche of its new six billion dlr loan is
drawn down in the second quarter, Mexico will still only have
enough reserves to pay for imports and debt service for four or
five months, Gurria noted.
    Nevertheless, Gurria said Mexico does not expect to draw on
the commercial banks' 1.2 billion dlr investment-support
contingency facility. That money will be available until April
1988 if Mexico's export receipts and the price of oil fall
below certain levels. But Mexico failed to qualify for the
first two drawings totalling 451 mln dlrs, and Gurria said
today, "We expect we'll never have to use it."
    Gurria said Mexico will know by June whether it can draw on
the second contingency facility included in the bank financing
package - a 500 mln dlr growth co-financing loan with the World
Bank.
    Finance minister Gustavo Petricioli said he had signed
yesterday a 250 mln dlr loan with the World Bank to support the
development of exports of manufactured goods.
    He also said the first 250 mln dlr tranche of a one billion
dlr loan from the Japanese government to support steel, oil and
export promotion will be disbursed at the end of the month.
    Mexico is also due to make the third drawing from its
International Monetary Fund standby credit in the next few days
based on a successful review of end-1986 economic results.
    Petricioli said Mexico is in the final stages of
discussions which will determine quantitative economic targets
for 1987 which will allow it to continue to draw from the IMF
for the rest of 1987.
    Petricioli reported that Mexico has so far concluded eight
bilateral accords with government creditors within the Paris
Club.
    Sixteen governments signed the Paris Club umbrella
agreement last September, which restructured 1.8 billion dlrs
of official debt, and Petricioli said he hopes to finalize
pacts with the remaining eight countries in the next few weeks.
    In keeping with the spirit of the September agreement, he
said all countries from the Organization of Economic
Cooperation and Development have continued to provide export
credit facilities for Mexico, despite the debt restructuring.


.I 13460
.C
earn
.W
NAVISTAR <NAV> UP ON HIGHER EARNINGS OPINION.
    NEW YORK, MARCH 20 - Navistar International Corp's stock
rose after brokerage house Sanford C. Bernstein and Co raised
its earnings estimate of the company based on expectations of
better truck orders and truck tonnage, traders said.
    Navistar led the active list with a gain of 1/4 to 7-1/4 on
volume of 4.2 mln shares.
    Traders familiar with the opinion said that David
Eisenberg, director of Sanford C. Bernstein and Co's
institutional strategy committee, raised his earnings estimates
to 80 cts a share for the current fiscal year ending in
October. He expects Navistar to earn 1.20 dlrs a share next
year. In 1986, the company lost 14 cts a share.
    Eisenberg was unavailable for comment.


.I 13461
.C
acq
.W
ICN PHARMACEUTICALS <ICN> SEEKING ACQUISITION.
    COSTA MESA, Calif., March 20 - ICN Pharmaceuticals Inc  has
about 500 mln dlrs in cash and another 1.50 billion dlrs in
available credit, which it intends to use to buy a
pharmaceutical company, Chairman Milan Panic said.
    At the company's annual meeting, he said an acquisition
could take place in the next 24 months.
    "The company has nearly two billion dlrs available for
acquisition today," Panic said, adding, "We are investigating a
number of companies." One company being studied could possibly
be acquired on a friendly basis, he said.
    Panic also said he intends to seek board approval today to
repurchase up to three mln ICN common shares.
    Discussing the possibility of an acquisition, Panic said
the such a purchase is necessary because ICN's current
marketing capability would not be sufficient to support
distribution of the company's products, given ICN's
expectations for market growth worldwide.
    ICN's principal product is ribavirin, also known as
Virazole. The drug is marketed in a number of countries and
described as a broad-based anti-viral.
    The company has said its possible applications include
treatment of some types of hepatitis, herpes, influenza,
childhood diseases and hemorrhagic fevers.
    ICN has been the focus of consirable investor attention in
recent months because of Virazole, which has undergone clinical
trials as a possible treatment of some AIDS-related diseases.
    Panic said today he would not discuss the drug with regard
to AIDS until the Food and Drug Administration completes its
review of data submitted by the company.
    He said an investigation of the drug being conducted by a
House Subcommittee is continuing.
    The subcommittee and the FDA have acknowledged they are
conducting separate investigations to determine whether or not
ICN witheld data from the FDA on adverse reactions to the drug.
    Virazole is approved for marketing in the U.S. in aerosol
form as a treatment for an infection that strikes infants,
called respiratory syncytial virus.


.I 13463
.C
earn
.W
JUSTIN INDUSTRIES INC <JSTN> SETS DIVIDEND.
    FORT WORTH, March 20 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 10
    Record March 27


.I 13464
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 150,000 TONNES CORN  CORN SWITCHED FROM UNKNOWN TO USSR FOR 1986/87.
Blah blah blah.

.I 13469
.C
earn
.W
SCHOLASTIC INC <SCHL> 3RD QTR FEB 28 NET.
    NEW YORK, March 20 -
    Shr 1.55 dlrs vs 70 cts
    Net 3,409,000 vs 1,455,000
    Rev 54.1 mln vs 45.3 mln
    Nine months
    Shr 1.60 dlrs vs 10 cts
    Net 3,517,000 vs 211,000
    Rev 144.4 mln vs 127.0 mln
    NOTE: Qtr net includes extraordinary gain of 1.2 mln dlrs,
versus 155,000 dlrs for fiscal 1986's third quarter, and a
non-recurring pre-tax gain of 720,000 dlrs.



.I 13470
.C
earn
.W
KLEINWORT BENSON <KBA> UNIT SETS FIRST DIVIDEND.
    NEW YORK, March 20 - Kleinwort Benson International
Investment Ltd's subsidiary, Kleinwort Benson Australian Income
Fund, a closed end management investment company, declared its
first quarterly dividend of 36.5 cts payable April 16 to
shareholders of record April 1.
   


.I 13471
.C
money-fx
.W
G-10 FINANCE OFFICIALS DISCUSS DEBT, CURRENCIES.
    PARIS, March 20 - Deputy Finance Ministers from the Group
of 10 leading western industrialised countries met here to
discuss the world debt crisis, trade imbalances and currency
stability today following last month's Paris monetary accord,
sources close to the talks said.
    The officials met at the offices of the International
Monetary Fund (IMF) to discuss broad aspects of world monetary
policy in preparation for the IMF's interim committee meeting
in Washington in April.
    The talks were the first high-level international review of
the monetary situation since the accord last month reached by
the U.S., West Germany, France, Britain, Japan and Canada to
stabilise world currency markets at around present levels
following the 40 pct slide in the dollar since mid-1985.
    Other countries represented at today's talks were Italy,
which refused to attend last month's meeting on the grounds
that it was being excluded from the real discussions, the
Netherlands, Belgium and Switzerland.
    Many of the officials had met earlier today and yesterday
within the framework of the Organisation for Economic
Cooperation and Development (OECD) to review the slow progress
being made in cutting the record 170 billion dlr U.S. Trade
deficit and persuading West Germany and Japan to open their
economies to more foreign imports.


.I 13472
.C
oilseed;meal-feed;
.W
CCC GUARANTEES TO TURKEY SWITCHED TO MEALS-USDA.
    WASHINGTON, March 20 - The Commodity Credit Corporation,
CCC, has reallocated 15.0 mln dlrs in credit guarantees to
Turkey previously earmarked for sales of U.S. oilseeds to
provide coverage for sales of U.S. protein meals in fiscal year
1987, the U.S. Agriculture Department said.
    The department said the action reduces the guarantee line
authorized for sales of oilseeds to 5.0 mln dlrs from 20.0 mln
dlrs and creates the new line for protein meals.
    All sales under the credit lines must be registered and
exports completed by September 30, 1987, it said.


.I 13474
.C
earn
.W
VERNITRON CORP <VRN> 4TH QTR AND YEAR LOSS.
    LAKE SUCCESS, N.Y., March 20 -
    Oper shr loss 49 cts vs loss 10 cts
    Oper net loss 3,014,000 vs loss 656,000
    Revs 22.7 mln vs 23.6 mln
    12 mths
    Oper shr loss 19 cts vs profit 40 cts
    Oper net loss 1,142,000 vs profit 2,476,000
    Revs 93.3 mln vs 99.0 mln
    NOTE: qtr 1986 and prior qtr excludes loss discontinued
operations 2,441,000 and 4,078,000, respectively.
    Year 1986 and prior excludes loss discontinued operations
3,509,000 and 5,278,000, respectively.
    qtr and year 1986 excludes tax loss 1,557,000 and loss
151,000, respectively.
    qtr and year prior excludes tax gain 833,000 and 3,346,000,
respectively.


.I 13475
.C
earn
.W
GOODY PRODUCTS INC <GOOD> YEAR END OPER NET.
    KEARNY, N.J., March 20 -
    Oper shr 1.21 vs 88 cts
    Oper net 7,767,000 vs 5,494,000
    Revs 163.7 mln vs 133.5 mln
    NOTE: 1986 and 1985 oper net excludes a loss of 1,332,000
dlrs and a profit of 319,000 dlrs, respectively, for
discontinued operations.
    Earnings per shr are restated to reflect 3-for-2 stock
split effective July one, 1986.


.I 13476
.C
earn
.W
VMS MORTGAGE INVESTORS L.P. <VMLPZ> MONTLY DIV.
    CHICAGO, March 20 -
    DIst nine cts vs nine cts prior
    Payable May 14
    Record April one


.I 13477
.C
earn
.W
PEPS BOYS-MANNY, MOE AND JACK <PBY> SET PAYOUT.
    PHILADELPHIA, March 20 -
    Qtly div 5.5 cts vs 5.5 cts prior
    Pay April 27
    Record April one.


.I 13478
.C
wheat;grain;
.W
CCC ACCEPTS EXPORT BONUS ON SEMOLINA TO EGYPT.
    WASHINGTON, March 20 - The Commodity Credit Corporation,
CCC, has accepted a bid for an export bonus to cover a sale of
6,000 tonnes of semolina to Egypt, the U.S. Agriculture
Department said.
    The department said the semolina is for shipment
April-October, 1987, and the bonus awarded was 224.87 dlrs per
tonne.
    The bonus was made to International Multifoods Corp and
will paid to the exporter in the form of commodities from CCC
stocks, the department said.
    An additional 7,000 tonnes of semolina are still available
to Egypt under the Export Enhancement Program initiative
announced August 1, 1986, it said.


.I 13479
.C
earn
.W
VMS MORTGAGE INVESTORS <VMTGZ> RAISES PAYOUT.
    CHICAGO, March 20 - VMS Mortgage Investors LP II said it
raised its first quarter 1987 cash dividend to 21 cts from 20
cts the prior quarter payable May 14, 1987, to shareholders of
record April One, 1987.


.I 13480
.C
acq;ship;
.W
REGENCY CRUISES <SHIP> SELLS SHIP INTEREST.
    NEW YORK, March 20 - Regency Cruises Inc said it agreed to
sell a 40 pct interest in the corporation that owns the M/V
Regent Sea cruise ship for 2.1 mln dlrs to Monmouth
International SA, which owns the other 60 pct.
    The company said it also extended a 1.7 mln dlr secured
loan to Monmouth to finance completion of the renovation of
another vessel, the M/V Regent Star, which is scheduled to
begin operating in late June.
    Regency Cruises, which operates both ships, received a
five-year extension, to November 1995, to the Regent Sea's
original charter agreement, it said. It also received a
reduction, to 600,000 dlrs from 1.6 mln dlrs, of its total
charter guarantee for the Regent Sea and Regent Star.
    Regency also reported 1986 earnings of 5,695,000 dlrs or 37
cts a share on revenues of 40.9 mln dlrs. It began operations
in November 1985.
    In addition, the company said its bank, Irving Bank Corp
<V>, agreed to waive a one mln dlr counter guarantee for the
bank to provide a 2.6 mln dlrs guarantee for Regency's Federal
Maritime Commission bond.
    The company said after April 3 the exercise price of its
warrants will return to two dlrs until they expire April 21.
The price had been reduced to 1.50 dlrs for the three weeks
ending April 3.


.I 13482
.C
ship
.W
FREIGHT, INSURANCE PROPOSED FOR CCC SALES - USDA.
    WASHINGTON, March 20 - the U.S. Agriculture Department is
proposing to permit coverage of freight cost and marine and war
risk insurance for sales  of all agricultural commodities sold
on credit terms under the Commodity Credit Corporation's, CCC,
credit guarantee programs.
    The proposal only applies to commodities that are sold by
exporters on a cost and freight, C and F, or cost, insurance
and freight, CIF, basis, since these costs would be included in
the exporter's sale price to the foreign buyer, it said.
    Under current programs, freight costs can be covered only
for export sales of U.S. breeding animals.
    It asked for comments on the proposal by April 20.


.I 13483
.C
livestock
.W
CCC ACCEPTS EXPORT BONUS FOR CATTLE TO EGYPT.
    WASHINGTON, March 20 - The U.S. Commodity Credit
Corporation (CCC) has accepted a bid for an export bonus to
cover a sale of 186 head of dairy cattle to Egypt, the U.S.
Agriculture Department said.
    The department said the cattle are for delivery May 7-June
7, 1987, and the bonus awarded was 1,888.06 dlrs per head.
    The bonus was made to First Interstate Trading Co and will
be paid to the exporter in the form of commodities from CCC
stocks, the department said.
    An additional 7,959 head of dairy cattle are still
available to Egypt under the Export Enhancement Program
initiative announced September 12, 1986, it said.


.I 13484
.C
acq
.W
CLARK EQUIPMENT <CKL> BUYS 1.3 MLN SHARES.
    SOUTH BEND, IND., March 20 - Clark Equipment Co said it has
purchased 1,339,000 shares of its common stock from an investor
group led by Arthur M. Goldberg for 26.375 dlrs a share.
    It said the purchase reduces the number of shares of Clark
common stock to be purchased under its stock repurchase plan
announced March 10. At the time the company said it would buy
back 3.0 mln shares, or 16 pct of the outstanding stock.
     Clark Equipment also said the investor group agreed to
enter into a standstill agreement which prohibits members of
the group from purchasing shares of voting securities of Clark
for 10 years.


.I 13485
.C
acq
.W
YANKEE COS <YNK> UNIT TO SELL ASSSETS.
    COHASSET, N.Y., March 20 - Yankee Cos Inc's Eskey Inc <ESK>
subsidiary said it reached an agreement in principle to sell
its Eskey's Yale E. Key Inc subsidiary to a new concern formed
by Key's management and a private investor for about 15.5 mln
dlrs.
    As part of sale, Eskey said the buyers will assume the 14.5
mln dlrs of publicly held Eskey 10-3/4 pct debentures due 2003.
It said the debentures will continue to be converted into
Yankee preferred. The remainder of the price will be a one mln
dlr note to Eskey. Yankee said the sale will result in a loss
of 1.5 mln dlrs.


.I 13487
.C
acq
.W
WENDY'S <WEN> DECLNES COMMENT ON MARKET RUMORS.
    CHICAGO, March 20 - Wendy's International Inc declined to
comment on vague rumors by traders that it might be a takeover
target.
    Wendy's is currently trading up one at 11-3/4 on turnover
of more than 1.6 mln shares.
    A Wendy's spokesman said it was corporate policy not to
comment on market rumors.
    He further declined to attribute active trading in Wendy's
stock to a published report which stated Wall Street
professionals believe that Wendy's was possibly being studied
by Coca Cola Co (KO) with view to a possible acquisition.


.I 13488
.C
acq
.W
GOODY <GOOD> TO SELL UNIT TO UNION CAMP <UCC>.
    KEARNY, N.J., March 20 - Goody Products Inc said it entered
into an agreement to sell its J. and P.B. Myers packaging
business to Union Camp Corp to focus on its consumer products
and automated distribution system businesses.
    Terms of the agreement were not disclosed.


.I 13489
.C
acq
.W
CHAMPION PARTS<CREB> ASKS DECLARATORY JUDGMENT.
    OAK BROOK, ILL., March 20 - Champion Parts Rebuilders Inc
said it asked the Federal District Court in Chicago for a
declaratory judgment upholding its recent 5.4 mln dlr sale of
common shares and warrants to Echlin Inc <ECH>.
    Champion said in hearings Thursday morning before the
federal judge on its lawsuit charging federal securities law
violations against Cormier Corp, Odilon Cormier, Morris Navon
and other defendants, the Cormier-Navon defendants indicated
they would challenge the transaction.
    Champion's suit claims that various Champion investors
alligned themselves with Cormier and Navon who failed to
disclose properly under federal laws that they were acting in
concert and they intended to spin off parts of the company and
sell the balance within two years once they got control.


.I 13490
.C
acq
.W
******CYACQ RAISES OFFER FOR CYCLOPS TO 92.50 DLRS/SHARE FROM 80 DLRS.
Blah blah blah.

.I 13491
.C
earn
.W
GREAT COUNTRY BANK <GCBK> 3RD QTR NET.
    ANSONIA, Conn., March 20 - Qtr ends Feb 28
    Shr 53 cts vs N/A
    Net 1,165,000 vs 575,000
    Nine mths
    Shr 1.54 dlrs vs N/A
    Net 3,363,000 vs 1,535,000
    Assets 375.2 mln vs 320.7 mln
    Deposits 313.8 mln vs 264.2 mln
    Loans 286.3 mln vs 235.9 mln
    NOTE: earnings per share data not presented for 1986 as
Great Country Bank converted from a mutual to a capital stock
savings bank on Jan 14, 1986. Such information is misleading
and inappropriate, the company said.


.I 13492
.C
money-supply
.W
******U.S. BUSINESS LOANS FALL 660 MLN DLRS IN MARCH 11 WEEK, FED SAYS.
Blah blah blah.

.I 13493
.C
gas
.W
EC AGREES REDUCTION OF DIESEL EXHAUST EMISSIONS.
    BRUSSELS, March 20 - The European Community (EC) agreed
tough new rules to cut diesel exhaust emissions from trucks and
buses in an attempt to reduce air pollution threatening vast
stretches of the region's forests.
    Diplomats said EC environment ministers meeting here agreed
member states would have to reduce by 20 pct over the next few
years the emission of nitrogen oxide, widely seen as the main
source of acid rain endangering forests and lakes.
    The reduction would be compulsory for heavy vehicles, with
tougher standards imposed for new models from April 1988 and
for all new vehicles from October 1990.
    The EC's executive Commission says the emission level of
nitrogen oxide was expected to drop to 2.4 mln tonnes a year
from three mln tonnes within the 12-nation Community if all
heavy vehicles applied to the new standards.
    There are an estimated nine mln lorries and buses in use in
the EC, according to Commission figures.
    The ministers also gave West Germany a go-ahead to move
towards a ban on the sale of leaded regular petrol, after Bonn
requested permission to do so to encourage the use of
low-pollution cars, diplomats said.
    West Germany will still need ministers' final approval for
such a plan. Diplomats said this was expected when EC
environment ministers meet next on May 21.
    But the ministers added that the go-ahead for West Germany
did not mean there would automatically follow a Community-wide
ban on the sale of regular leaded petrol.
    Bonn intends to keep leaded premium petrol pumps, diplomats
said. They added that, of the 97 mln cars in the EC, only 20
mln now ran on regular leaded petrol and these would risk no
damage if they switched over to premium leaded petrol.
    Under EC law, ministers have to give member states special
permission if they wish to be exempt from Community competition
laws. This would be the case if West Germany were to implement
a ban on the sale of leaded regular petrol.


.I 13495
.C
earn
.W
MARCUS <MRCS> VOTES 50 PCT STOCK DIVIDEND.
    MILWAUKEE, WIS., March 20 - Marcus Corp said its board
voted a 50 pct stock dividend to be distributed May 1, record
April 15.
    It said the dividend applies equally to holders of its
common stock and Class B common.


.I 13496
.C
earn
.W
VMS MORTGAGE <VMTGZ> CASH DISTRIBUTION RISES.
    CHICAGO, March 20 - VMS Mortgage Investors L.P. II said it
declared a first-quarter 1987 cash distribution of 21 cts a
depositary unit, up five pct from the prior quarter.
    It said the distribution will be payable May 14, record
January 1.


.I 13498
.C
acq
.W
AUDIO/VIDEO <AVA>SWEETENS BID FOR CYCLOPS <CYL>.
    DAYTON, Ohio, March 20 - An investment group led by
Audio/Video Affiliates Inc said it raised its tender offer to
acquire Cyclops Corp to 92.50 dlrs a share from 80 dlrs a
share.
    The group, Cyacq Acquisition Corp, also said it extended
the offer until April three, from March 20.
    The group said it added several conditions to its offer,
including receipt of all non-public information about Cyclops
that was provided to <Dixons Group PLC> in connection with
Dixon's competing tender offer for Cyclops.
    Cyacq's sweetened offer, totaling about 398 mln dlrs, tops
Dixon's offer of 92.25 dlrs a share, or about 388 mln dlrs.
    On Wednesday Dixon said it had bought 54 pct of Cyclops'
4.3 mln shares outstanding, boosting its stake in the company
to 56 pct.
    Earlier today, however, the Securities and Exchange
Commisssion ordered Dixons to extended its tender offer until
March 24.
    Cyacq said it hopes Cyclops shareholders "will withdraw
previously tendered shares from Dixons' tender offer to take
advantage of Cyacq's higher offer."
    The SEC's order came after Cyacq filed suit to block Dixons
from taking control of Cyclops and to force an extension of
Dixons' tender offer.
    A Cyclops spokeswoman said the company had no immediate
comment on the sweetened bid from Cyacq.
    Cyacq said its new offer is also subject to Cyclops
rescinding any agreements with Dixons under which the
U.K.-based firm would receive "break-up fees" or expenses from
Cyclops or could buy Cyclops common stock from the
Pittsburgh-based company.


.I 13500
.C
earn
.W
EMERALD HOMES <EHP> SETS INITIAL DISTRIBUTION.
    PHOENIX, Ariz., March 20 - Emerald Homes L.P. said its
general partners declared an initial 30-ct per unit
distribution payable May 15 to unitholders of record March 31.
    Emerald made its initial public offering February 6.


.I 13501
.C
money-supply
.W
U.S. BUSINESS LOANS FALL 660 MLN DLRS.
    WASHINGTON, March 20 - Business loans on the books of major
U.S. banks, excluding acceptances, fell 660 mln dlrs to 277.93
billion dlrs in the week ended March 11, the Federal Reserve
Board said.
    The Fed said that business loans including acceptances
declined 492 mln dlrs to 280.56 billion dlrs.


.I 13504
.C
acq
.W
JEFFERIES MAKES MARKET IN CYCLOPS <CYL>.
    NEW YORK, MARCH 20 - Jefferies and Co said it is making a
market in the stock of Cyclops Corp at 92-1/2 to 95.
    Cyclops received a sweetened offer of 92.50 dlrs per share
from Cyacq Acquisition Corp, led by Audio/Video Affiliates Inc
<AVA>.
      


.I 13505
.C
acq
.W
BEI <BEIH> ACQUIRES IVEY-ROWTON AND ASSOCIATES.
    ATLANTA, March 20 - BEI Holdings Ltd said it acquired
Ivey-Rowton and Associates, a Nashville, Tenn.-based bank
marketing firm.
    Terms were not disclosed.


.I 13506
.C
gold
.W
LAC MINERALS <LAC> TO CLOSE LAKE SHORE MINE.
    TORONTO, March 20 - LAC Minerals Ltd said it will suspend
underground mining and exploration at its Lake Shore Mine at
Kirkland Lake, Ontario, on April 30, pending results of a
surface exploration drilling program.
    LAC said it does not expect the decision to affect
earnings, but 44 employees will be affected.
    The company said it has completed mining the crown pillar
which has produced 71,000 ounces of gold since 1983. In 1986,
the mine produced 10,600 ounces. LAC said it will continue
surface drilling in 1987 to determine if further underground
exploration work is warranted.
   


.I 13508
.C
earn
.W
SOUTHERN HOME SAVINGS BANK <SHSB> YEAR NET.
    PENSACOLA, Fla., March 20 -
    Shr 1.86 dlrs vs 1.85 dlrs
    Net 1,923,304 vs 1,897,998


.I 13511
.C
earn
.W
BINKS MFG CO <BIN> REGULAR DIVIDEND SET.
    FRANKLIN PARK, ILL., March 20 -
    Qtly div 25 cts vs 25 cts previously
    Pay April 17
    Record March 30


.I 13512
.C
earn
.W
WEST CO INC <WST> SETS REGULARY PAYOUT.
    PHOENIXVILLE, Pa., March 20
    Qtrly div 13 cts vs 13 cts prior
    Pay May 5
    Record April 21


.I 13513
.C
acq
.W
FIRM SELLS ENTIRE ALLEGHENY INT'L <AG> STAKE.
    WASHINGTON, March 20 - Southeastern Asset Management Inc
and its two controlling shareholders said they sold their
entire 5.6 pct stake in Allegheny International Inc.
    In a filing with the Securities and Exchange Commission,
Southeastern, a Memphis, Tenn. investment advisor, said it sold
the entire 604,000-share stake between March 13 and 16 at
prices ranging from 24.25 to 24.625 dlrs each.



.I 13514
.C
acq
.W
JAPANESE FIRM HAS 10.7 PCT OF SHELDAUL <SHEL>.
    WASHINGTON, March 20 - Sumitomo Bakelite Co Ltd, a Japanese
company, told the Securities and Exchange Commission it has
acquired 325,000 shares of Sheldahl Inc, or 10.7 pct of the
total outstanding common stock.
    Sumitomo Bakelite said it bought the stock for 4.9 mln dlrs
for investment purposes.
    Under an between Sumitomo Bakelite and Sheldahl, as long as
its stake is more than five pct, Sumitomo said it has
preemptive rights for 60 days following notice of issuance of
new Sheldahl common stock. As long as its stake is over 10 pct,
it said it is entitled to Sheldahl board representation.


.I 13515
.C
earn
.W
COMMONWEALTH EDISON CO <CWE> 12 MONTHS NET.
    CHICAGO, March 20 - Period ended Feb 28
    Shr 4.66 dlrs vs 4.40 dlrs
    Net 1,048,884,000 vs 959,626,000
    Revs 5.43 billion vs 5.04 billion
    Avg shrs 200,242,000 vs 191,840,000
    NOTE: Per-share earnings reflect payment of preferred
dividend requirements


.I 13518
.C
acq
.W
JOHN HANCOCK UNITS DUMP STAKE IN PRICE <PR>.
    WASHINGTON, March 20 - Subsidiaries of John Hancock Mutual
Life Insurance Co told the Securities and Exchange Commission
they sold their entire 13.1 pct stake in Price Communications
Corp back to the company.
    The Hancock subsidiaries said they sold their entire
1,627,603-share stake in Price Communications to the company
for 11 dlrs a share on Feb 23.


.I 13521
.C
earn
.W
NIAGARA MOHAWK <NMK> TO CUT COSTS.
    SYRACUSE, N.Y., March 20 - Niagara Mohawk Corp said it is
"cautiously optimistic" about results improvements for 1987 and
said it is studying measures to cut operating costs.
    These measures include freezing management salaries,
abolishing vacant positions and reducing overtime.
    A spokesman said the company had no current plans to lay
off workers. The company declined to say how much the cost
savings would amount to.
    A five year forecast is expected to be issued in early
summer, a spokesperson said.
    The company said it has redeemed about 273 mln dlrs in high
cost debt during 1986 and hopes to redeem more debt this year.
    For 1986, Niagara Mohawk's earnings per share fell to 2.71
dlrs from 2.88 dlrs in 1985..
    The company said earnings reduced primarily as a result of
a reduction early in 1986 in earnings return on equity allowed
by the N.Y. State Public Service COmmission.
    Niagara said it is concerned about the continued lowering
of authorized return and has reinforced petitions to grant a 
fair return on equity.


.I 13522
.C
earn
.W
GANTOS INC <GTOS> 4TH QTR JAN 31 NET.
    GRAND RAPIDS, MICH., March 20 -
    Shr 43 cts vs 37 cts
    Net 2,276,000 vs 1,674,000
    Revs 32.6 mln vs 24.4 mln
    Year
    Shr 90 cts vs 69 cts
    Net 4,508,000 vs 3,096,000
    Revs 101.0 mln vs 76.9 mln
    Avg shrs 5,029,000 vs 4,464,000
    NOTE: 1986 fiscal year ended Feb 1, 1986


.I 13523
.C
acq
.W
******CHEMLAWN CORP, ECHOLAB INC SIGN DEFINITIVE MERGER AGREEMENT.
Blah blah blah.

.I 13524
.C
oilseed;veg-oil;wheat;grain;soybean;
.W
LDC FOOD AID NEEDS DECLINE IN 1986/87 - USDA.
    WASHINGTON, March 20 - Total food aid needs in 69 of the
least developed countries declined in 1986/87, as requirments
fell in many countries in Africa, the Middle East and Asia, the
U.S. Agriculture Department said.
    In a summary of its World Agriculture Report, the
department said grain production in sub-Saharan Africa was a
record high in 1986, with gains in almost every country.
    However, food needs in Central America rose, worsened by
drought-reduced crops and civil strife.
    Record wheat production in 1986/87 is pushing global wheat
consumption for food to a new high, and higher yielding
varieties have been particularly effective where spring wheat
is a common crop, it said.
    However, may developing countries in tropical climates,
such as Sub-Saharan Africa, Southeast Asia, and Central
America, are not well adapted for wheat production, and
improved varieties are not the answer to rising food needs, the
department said.
    World per capita consumption of vegetable oil will rise in
1986/87 for the third straight year.
    Soybean oil constitutes almost 30 pct of vegetable oil
consumption, while palm oil is the most traded, the department
said.


.I 13525
.C
grain;sugar;corn;
.W
U.S. SUGAR PROGRAM CUT SENT TO CONGRESS BY USDA.
    WASHINGTON, MARCH 20 - The U.S. Agriculture Department 
formally transmitted to Congress a long-awaited proposal to
drastically slash the sugar loan rate and compensate growers
for the cut with targeted income payments.
    In a letter to the Congressional leadership accompanying
the "Sugar Program Improvements Act of 1987", Peter Myers,
Deputy Agriculture Secretary, said the Reagan administration
wants the sugar loan rate cut to 12 cents per pound beginning
with the 1987 crop, down from 18 cts now.
    Sugarcane and beet growers would be compensated by the
government for the price support cut with targeted income
payments over the four years 1988 to 1991. The payments would
cost an estimated 1.1 billion dlrs, Myers said.
    The administration sugar proposal is expected to be
introduced in the House of Representatives next week by Rep.
John Porter, R-Ill.
    Congressional sources said the program cut is so drastic it
is unlikely to be adopted in either the House or Senate because
politically-influential sugar and corn growers
and high fructose corn syrup producers will strongly resist.
    The direct payment plan outlined by the administration 
targets subsidies to small cane and beet growers and gradually
lowers payments over four years. It also excludes from payment
any output exceeding 20,000 short tons raw sugar per grower.
    For example, on the first 350 tons of production, a grower
would receive 6 cts per lb in fiscal 1988, 4.5 cts in 1989, 3
cts in 1990 and 1.5 cts in 1991.
    The income payments would be based on the amount of
commercially recoverable sugar produced by a farmer in the 1985
or 1986 crop years, whichever is less, USDA said.
    Myers said the administration is proposing drastic changes
in the sugar program because the current high price support is
causing adverse trends in the sugar industry.
    He said the current program has artificially stimulated
domestic sugar and corn sweetener production which has allowed
corn sweeteners to make market inroads.
    U.S. sugar consumption has declined which has resulted in a
"progressive contraction" of the sugar import quota to only one
mln short tons this year, he said. This has hurt cane sugar
refiners who rely on imported sugar processing.
    Furthermore, USDA said the current sugar program gives
overseas manufacturers of sugar-containing products a
competitive advantage. The result has been higher imports of
sugar-containing products and a flight of U.S. processing
facilities overseas to take advantage of cheaper sugar.
    USDA also said the current program imposes a heavy cost on
U.S. consumers and industrial users. In fiscal 1987, USDA said
consumers are paying nearly two billion dlrs more than
necessary for sugar.
    "Enactment of this bill will reduce the price gap between
sweeteners and help to correct or stabilize the many adverse
impacts and trends which the sugar industry is currently
facing," Myers said.
    The following table lists the rate of payments, in cts per
lb, to growers and the quantity covered, in short tons
recoverable raw sugar, under the administration's proposal to
compensate sugar growers with targeted payments.
    QUANTITY            1988     1989      1990      1991
First 350 tons         6.000    4.500     3.000     1.500
Over 350 to 700        5.750    4.313     2.875     1.438
Over 700 to 1,000      5.500    4.125     2.750     1.375
Over 1,000 to 1,500    5.000    3.750     2.500     1.250
Over 1,500 to 3,000    4.500    3.375     2.250     1.125
Over 3,000 to 6,000    3.500    2.625     1.750     0.875
Over 6,000 to 10,000   2.250    1.688     1.125     0.563
Over 10,000 to 20,000  0.500    0.375     0.250     0.125
Over 20,000 tons        nil      nil       nil       nil 


.I 13526
.C
earn
.W
<OE INC> 4TH QTR NET.
    MONTREAL, March 20 -
    Shr 24 cts vs 26 cts
    Net 1.5 mln vs 1.3 mln
    Revs 40.5 mln vs 33.5 mln
    Year
    Shr 80 cts vs 82 cts
    Net 4.9 mln vs 4.1 mln
    Revs 143.0 mln vs 121.1 mln
    Avg shrs 6.1 mln vs 5.0 mln


.I 13528
.C
earn
.W
VMS MORTGAGE LP <VMLPZ> MONTHLY CASH PAYOUT.
    CHICAGO, March 20 - VMS Mortgage L.P. said it declared a
regular monthly cash distribution of nine cts a depositary unit
for the month of March, payable May 14, record April One.


.I 13529
.C
livestock;pork-belly;
.W
LITTLE EFFECT SEEN FROM COLD STORAGE REPORT.
    CHICAGO, March 20 - The USDA monthly cold storage report
for meats is expected to have little, if any, effect on
livestock and meat futures at the Chicago Mercantile Exchange
Monday and daily fundamentals will likely provide the bulk of
direction, livestock analysts said.
    The increase of 66.4 mln lbs in total poultry offsets the
22.6 mln lbs decline in total red meats. Fundamentals may
provide most of the direction in futures on Monday, they said.
    "I think the market is going to be looking at some other
things and accentuate whatever the action of cash markets might
be early next week," Jerry Gidel, livestock analyst for GH
Miller, said.
    Shearson Lehman livestock analyst Chuck Levitt said futures
will be in the shadow of a little larger seasonal hog
marketings pace next week. Also, Easter ham business was
completed this week and there may be less aggressive interest
for pork in general next week.
    "We needed some help from the cold storage report to avert
a possible setback next week in the pork complex," Levitt said.
    Analysts agreed with CME floor traders and called the belly
figure neutral to slightly negative. Although belly stocks were
down 33 pct from last year, they exceeded the average
expectation and actually showed a lighter than expected decline
from last month due to an adjustment to last month's holdings,
they said.
    However, analysts noted that the amount of bellies put in
storage has been light since the beginning of March and this is
a potentially bullish situation.
    Glenn Grimes, agronomist at the University of Missouri,
said, "I would not look for (belly) storage during the next
month or two to be heavier than a year ago - I think it will be
less."


.I 13530
.C
ship;grain;
.W
STRIKE THREAT, LOWER TRAFFIC MAR SEAWAY OPENING.
    By Jane Arraf, Reuters
    MONTREAL, March 20, Reuter - The St. Lawrence Seaway, set
to reopen March 31 after the winter, faces another tough year
because of depressed traffic levels and the possibility of the
first strike in 20 years on the Great Lakes, seaway officials
said.
    Depressed grain exports, rising costs, and competing modes
of transportation are all expected to result in only a marginal
increase over last year's traffic levels -- and revenues -- on
the 2,300 mile waterway, officials said.
    In 1986, a season that ran from April 3 to December 27, the
seaway moved 37.6 mln metric tons of freight between Montreal
and Lake Ontario and 41.6 mln tons on the Welland Canal,
linking Lake Erie and Lake Ontario.
    By comparison, in 1985 about 37 mln tons of cargo traveled
through the Montreal-Lake Ontario section and 42 mln through
the eight-lock canal.
    The waterway is expected to lose 9-10 mln Canadian dlrs
this year, about the same as the estimated deficit for fiscal
1986-87 ending March 31, said William Blair, an executive
member of Canada's St Lawrence Seaway Authority.
    The seaway moves about one-half of Canada's exported grain.
Those exports of the single most important commodity carried on
the waterway have been depressed by world surpluses.
    The Seafarers' International Union, which represents about
2,300 workers on the Great Lakes and the ocean coasts, has said
it will likely go on strike this spring to protest employers'
demands for wage rollbacks and other concessions.
    "It's 99.9 pct (certain)--I guarantee you a strike," Roman
Gralewicz, head of the Seafarers' Canadian branch, has said.
    The Canadian government has called in a labor conciliator
to try to hammer out a contract agreement between the two
sides. The seaway authority said a walkout tying up ships on
the Great Lakes would badly hurt traffic.
    "We haven't had a strike on the seaway for years...a
prolonged strike would have a disasterous effect," Seaway
Authority spokeswoman Gay Hemsley said.
    "These are the heaviest contract talks in the history of the
St Lawrence Seaway," George Miller, vice-president of the
Canadian Lake Carriers Association, an association of major
Canadian shipping companies, said recently.
    The workers' current contract expires May 31. The
association said it is asking for a five per cent cut in wages
for the next three years, reduced crew levels and the power to
restructure crew dispatching.
    The association said its members recorded about a 6 mln dlrs
(U.S.) loss in each of 1985 and 1986 due to lower traffic and
freight rates and increasing competition. The seaway said 1985
was its worst year in two decades.
    Hemsley said the seaway authority plans to raise tolls on
the Welland Canal by eight pct this year, compared to last
year's 15 pct rise, while maintaining a freeze on tolls
throughout the rest of the waterway.
    Canada is responsible for 13 of the seaway's 15 locks and
about 85 pct of its revenues and maintenance costs.
    "We may see and hope for a steady upward climb...but we
won't see a major increase for a number of years," Hemsley said.
    A Canada-U.S. delegation to promote the seaway to shippers
in Western Europe should result in some increased traffic this
season but the full benefits won't be felt for several years,
Blair said.


.I 13531
.C
acq
.W
CHEMLAWN <CHEM>, ECOLAB <ECON> IN MERGER PACT.
    COLUMBUS, Ohio, March 20 - Chemlawn Corp and Ecolab Inc
said they signed a definitive merger agreement under which
Ecolab will buy all outstanding Chemlawn common stock for 36.50
dlrs a share in cash, for a total of about 370 mln dlrs.
    Under terms of the agreement, Chemlawn said it rescinded
its previously announced rights dividend plan.
    Chemlawn previously rejected a 27 dlr a share offer from
Waste Management Inc <WMX>.
    Yesterday, the Oak Brook, Ill.-based waste disposal company
said it was prepared to offer 33 dlrs a share, or about 330 mln
dlrs, for Chemlawn, a lawn-care company.
    Chemlawn had said last week that it was negotiating with
other possible suitors, which it did not identify.
    A Chemlawn spokesman said further details on the merger
would be issued later.
    Ecolab is a maker of commercial laundry detergent based in
St. Paul, Minn. For its first six months ended December 31, the
company earned 20.4 mln dlrs, or 76 cts a share, on sales of
421.8 mln dlrs.
    Officials at Waste Management could not be reached for
immediate comment.


.I 13532
.C
earn
.W
******LILCO REVISES 1986 NET TO INCLUDE 16 MLN DLR LOSS PROVISION.
Blah blah blah.

.I 13533
.C
earn
.W
FALCON CABLE <FAL> SETS INITIAL DISTRIBUTION.
    PASADENA, Calif., March 20 - Falcon Cable Systems Co said
its set an initial quarterly cash distribution of 53.75 cts per
unit, payable May 15 to unitholders of record March 31.
    The partnership made its initial public offering in
December, 1986.
    Falcon said it expects to pay cash distributions to limited
partners at an annual rate of 2.15 dlrs per unit, through
December 31, 1989.


.I 13536
.C
crude
.W
BIDS AWARDED FOR ELK HILLS CRUDE OIL.
    LOS ANGELES, March 20 - The U.S. Department of Energy said
it has awarded bids for about 90,000 barrels per day, bpd, of
crude oil from the Elk Hills Naval Petroleum Reserve in
California. The contract period runs from April one through
July one, the DOE said.
    Successful bidders, the amount of crude oil and the price
per bbl according to the DOE are as follows - 
    Texaco Inc's <TX> Texaco Trading and Transport 15,000 bpd
at 15.79 dlrs and 2,200 bpd at 15.19 dlrs, Beacon Oil Co 7,000
bpd at 15.66 dlrs and 2,500 bpd at 16.04 dlrs, Golden West
Refining 8,110 bpd at 15.42 dlrs.
    Successful bidders, the amount of oil and price per bbl,
according to the DOE continue as follows -
    Chevron's <CHV> Chevron USA Inc 3,000 bpd at 14.51 dlrs and
4,000 bpd at 14.61 dlrs, Chevron International Oil Co 2,600 bpd
at 14.41 dlrs and 2,800 bpd at 14.51 dlrs, Newhall Refining Co
6,000 bpd at 15.82 dlrs, Caljet Inc 4,000 bpd at 15.32 dlrs,
Casey Co 4,000 bpd at 15.45 dlrs.
    Also, Cryssen Refining Inc 4,000 bpd at 15.47 dlrs,
Edgington Oil Co 4,000 bpd at 15.54 dlrs, Sound Refining Inc
3,100 bpd at 15.51 dlrs, Atlantic Richfield Co <ARC> 3,000 bpd
at 15.75 dlrs.
    Successful bidders, the amount of crude oil and the price
per bbl according to the DOE continue as follows -
    Orkin Inc 2,679 bpd at 15.24 dlrs, Lunday-Thagard Co 2,511
bpd at 15.27 dlrs, Golden Eagle Refining 2,500 bpd at 15.37
dlrs, MacMillan Ring-Free Oil Co 1,000 bpd at 15.81 dlrs, 1,000
bpd at 15.71 dlrs and 230 bpd at 16.02 dlrs, Mock Resources
2,000 bpd at 15.76 dlrs, Petro-Diamond 2,000 bpd at 15.46 dlrs.


.I 13537
.C
earn
.W
MONTGOMERY STREET INCOME <MTS> MONTHLY DIVIDEND.
    SAN FRANCISCO, March 20 -
    Mthly div 15 cts vs 15 cts
    Pay April 15
    Record April 1


.I 13538
.C
earn
.W
<SULLIVAN MINES INC> YEAR LOSS.
    MONTREAL, March 20 -
    Oper shr loss 12 cts vs profit four cts
    Oper loss 1,069,000 vs profit 339,000
    Revs 12.8 mln vs 10.9 mln
    Note: 1986 shr and net exclude extraordinary gain of
382,000 dlrs or four cts share. 1985 shr and net exclude
extraordinary gain of 183,000 dlrs or two cts share


.I 13541
.C
acq
.W
INVESTMENT FIRM HAS 7.1 PCT OF CYCLOPS <CYL<.
    WASHINGTON, March 20 - Halcyon Investments, a New York risk
arbitrage and securities dealing partnership, told the
Securities and Exchange Commission it has acquired 288,000
shares of Cyclops Corp, or 7.1 pct of the total outstanding.
    Halcyon said it bought the stake for 26.1 mln dlrs as part
of its ordinary risk arbitrage and securities trading business.
Other than that, the firm said there was no specific purpose in
its purchases.
    Halcyon said it might buy more stock or sell some or all of
its current stake. It said it bought the bulk of its stake
between Feb 6 and March 13.


.I 13542
.C
acq
.W
CHRYSLER'S <C> CREDIT CANADA PLACED ON CREDITWATCH.
    Montreal, March 20 - Canadian Bond Rating Service said it
placed Chrysler Credit Canada Ltd, a subsidiary of Chrysler
Corp <C>, on creditwatch until all financial details concerning
the proposed acquisition of American Motors Corp <AMO> are
finalized.
    The creditwatch affects Chrysler Credit Canada's short term
notes, guaranteed notes, debentures and the recently completed
75 mln dlr 9.25 Eurobond issue due April 15, 1993.
    Canadian Bond Rating Service said that, based on facts
currently available on the proposed transaction, it does not
anticipate the necessity of a downgrade.
    Canadian Bond Rating Service said Chrysler Credit Canada
short term notes are now rated A-2 (high) and guaranteed notes
and debentures are rated B plus plus (high).


.I 13543
.C
earn
.W
LILCO <LIL> REVISES 1986 NET TO INCLUDE LOSS.
    HICKSVILLE, N.Y., March 20 - Long Island Lighting Co said
it revised its preliminary 1986 net income to include a 16 mln
dlrs after tax provision for its investment in the Jamesport
Nuclear units.
    Due to the provision, it said its revised 1986 net income
was 316.7 mln dlrs or 2.13 dlrs per share after deducting for
preferred stock dividend requirements, which were not paid in
either 1986 or 1985.
    It had earlier reported 1986 income of 332.7 mln dlrs or
2.28 dlrs per share.
    LILCO also said its board authorized contracts for its 
corporate officers calling for payment of one year's salary,
and continuation of insurance and retirement benefits if the
company changes hands and these officers lose their jobs.
    LILCO said none of these contracts will result in
additional costs to its customers.
    Lilco said the downward revision in its 1986 earnings is a
reserve established to reflect a settlement agreement with the
staff of New York State's Public Service Commission respecting
the utility's spending on a nuclear power station planned for,
but never built at, Jamestown, N.Y.
    The company declined to detail the settlement, explaining
the settlement has not been approved by the commission. Lilco
was seeking to include costs totaling 118 mln dlrs for the
abandoned nuclear power plant project in its rate base, a
spokeswoman said.


.I 13544
.C
acq
.W
ROGERS <ROG> ADOPTS RIGHTS PLAN.
    ROGERS, Conn., March 20 - Rogers Corp said its board
approved a shareholder rights plan designed to protect its
shareholders in the event of an attempted hostile takeover.
    Rogers said the plan is not being adopted in response to
any specific takeover attempt.
    Under the plan, shareholders may buy one share of common
stock at 65 dlrs for each share held. The rights will be
exercisable only if a person or group acquires 20 pct or more
of Rogers' shares or announces an offer for 30 pct or more.
    The dividend distribution will be made March 30 to holders
or record on that date.


.I 13546
.C
earn
.W
EASTGROUP PROPERTIES <EGP> DIVIDEND.
    JACKSON, MISS., May 20
    Qtly div 65 cts vs 65 cts prior
    Payable APril 22
    REcord April 10
    NOTE:Company paid 30 cts special dividend along with prior
quarter's dividend


.I 13547
.C
earn
.W
SUNBELT NURSERY GROUP INC <SBN> 2ND QTR FEB 28.
    FORT WORTH, Texas, March 20 -
    Shr loss 40 cts vs loss 29 cts
    Net loss 1.5 mln vs loss 1.1 mln
    Revs 28.9 mln vs 28.5 mln
    Six months
    Shr loss 99 cts vs loss 69 cts
    Net loss 3.7 mln vs loss 2.6 mln
    Revs 52.5 mln vs 51.7 mln
   


.I 13548
.C
earn
.W
MARCOM TELECOMMUNICATIONS <MRCM> 2ND QTR JAN 31.
    WEST PALM BEACH, Fla., March 20 -
    Oper shr loss five cts vs loss six cts
    Oper net loss 157,688 vs loss 96,573
    Revs 1,094,331 vs 1,378,973
    Avg shrs 3,315,654 vs 1,661,023
    Six mths
    Oper shr loss seven cts vs loss 24 cts
    Oper net loss 198,555 vs loss 394,589
    Net 2,243,377 vs 2,440,850
    Avg shrs 2,796,848 vs 1,637,592
    NOTE: Current year 2nd qtr and six mths excludes a loss
10,767 dlrs for discontinued operations.
    Prior year 2nd qtr and six mths excludes a loss of 54,686
dlrs and 112,565 dlrs for discontinued operations.
    Full name of company is Marcom Telecommunications Inc.


.I 13549
.C
earn
.W
EASTPARK REALTY TRUST <ERT> QTLY DIV.
    JACKSON, MISS, March 20 -
    Qlty div 25 cts vs 25 cts prior
    Payable April 22
    Record April 10


.I 13550
.C
trade
.W
CANADA'S CLARK SEES TRADE AS MOST URGENT PROBLEM.
    By Dean Lokken, Reuters
    SAN FRANCISCO, March 20 - Trade is the most urgent problem
facing U.S.-Canadian relations because of a pressing need to
reach a new bilateral pact within the coming months, Joe Clark,
Canadian secretary of state for external affairs, said.
    Negotiators for the two countries have been meeting for
more than a year in an effort to work out an agreement.
    "The most urgent problem now is the trade question because
that has to be decided within the next 10 months," Clark told
the Commonwealth Club of California. "We have a fast track
authority from your Congress for approval or rejection of
whatever the negotiators achieve."
    Clark said that, as a practical matter, an initial
agreement must be reached by late September or early October.
    He listed environmental questions, particularly acid rain,
and defense as the second and third most important bilateral
issues facing Ottawa and Washington.
    On Wednesday, President Reagan announced that he will seek
2.5 billion dlrs from Congress to address the acid rain
problem. Some interpreted the move as a goodwill gesture in
advance of his annual meeting, on April 5-6 in Ottawa, with
Prime Minister Brian Mulroney.
    In a question-and-answer session with the public affairs
group, Clark said that the two countries must find better
mechanisms for resolving their trade disputes.
    "This rash of countervailing actions, where we acted on
corn and you acted on soft wood and we both said they were
quasijudicial -- the dispute resolution mechanisims in place
now are not working adequately in either of our interests," he
said.
    Ottawa also is seeking to change some of Washington's rules
on government procurement that penalize Canadian businesses, he
said.
    "There are a number of Canadian companies that, in order to
secure substantial contracts in the United States, have had to
move their head offices out of our country into your country
because you have national procurement requirements," he said.
    In turn, he added, the United States would like to change
some of the procurement requirements that exist at the
provincial government level in Canada.
    Clark declined to forecast the outcome of the discussions.
    "What will come out of it remains for the negotiators, in
the first instance, to propose, and then governments and
congresses will have judge," he said.
    In his prepared remarks, Clark said that the United States
has tended to take Canada for granted, although it exports to
its northern neighbor more than twice what it exports to Japan.
"Yet you bought almost 10 per cent more from Japan last year
than you bought from Canada," he said.


.I 13551
.C
earn
.W
ESSEX CORP <ESEX> YEAR END LOSS.
    ALEXANDRIA, Va., March 20 -
    Oper shr loss 11 cts vs profit 33 cts
    Oper net loss 132,000 vs profit 408,000
    Revs 25.2 mln vs 23.0 mln
    NOTE: 1986 and 1985 oper net excludes a loss of 636,000
dlrs or 52 cts per share and a loss of 994,000 dlrs or 80 cts
per share for discontinued operations.


.I 13553
.C
earn
.W
<SULPETRO  LTD> YEAR OCT 31 LOSS.
    CALGARY, Alberta, March 20 -
    Shr loss 19.22 dlrs vs loss 3.90 dlrs
    Net loss 276.4 mln vs loss 45.6 mln
    Revs 85.4 mln vs 113.3 mln
    NOTE: Shr results after deducting preferred share dividends
of 13.1 mln dlrs in both periods.
    Current loss includes a 125 mln dlr writedown of oil and
gas properties, a 67 mln dlr writeoff of deferred charges, a
22.5 mln dlr loss on disposal of U.K. properties, a 21.2 mln
dlr equity loss from affiliate Sulbath Exploration ltd and a
4.6 mln dlr loss on other investments.


.I 13555
.C
earn
.W
SULPETRO LOSS DUE TO WRITEDOWNS, ASSET DISPOSALS.
    Calgary, Alberta, March 20 - <Sulpetro Ltd> said its 1986
fiscal year net loss of 276.4 mln dlrs, or 19.22 dlrs per
share, was due to several factors, the largest of which was a
writedown of 125.0 mln dlrs of oil and gas properties.
    Sulpetro also recorded a writeoff of deferred charges
amounting to 67.0 mln dlrs, a loss of 22.5 mln dlrs on the
disposal of all properties in the United Kingdom and an equity
loss of 21.2 mln dlrs from affiliate Sulbath Exploration Ltd.
    There was also a loss on other investments of 4.6 mln dlrs
and a loss on operations of 36.1 mln dlrs after interest,
depletion, depreciation and income tax recoveries.
    In the fiscal year ended October 31, 1985, Sulpetro had a
net loss of 45.6 mln dlrs, or 3.90 dlrs per share.
    The company also said its non-recourse project financing
for the Irish-Lindergh heavy oil field remains in default due
to continuing low oil prices.


.I 13558
.C
earn
.W
STANWOOD CORP <SNW> 4TH QTR JAN 3.
    NEW YORK, March 30 -
    Shr loss 1.12 dlrs vs profit one cts
    Net loss 1.7 mln vs profit 8,000 dlrs
    Revs 31.8 mln vs 42.1 mln
    Year
    Shr loss 51 cts vs profit 57 cts
    NEt loss 780,000 vs profit 876,000
    Revs 117.8 mln vs 117.3 mln
    NOTE:1986 4th qtr includes loss of 911,000 for termination
of licensing agreement and loss of 319,000 dlr for termination
of womens wear operation.


.I 13561
.C
acq
.W
AMERICAN EXPRESS <AXP> TO DISCUSS SHEARSON DEAL.
    New York, March 20 - American Express Co's board of
directors Monday will discuss the company's arrangement to sell
13 pct of Shearson Lehman Brothers Inc to Nippon Life Insurance
Co, a company spokesman said.
    The spokesman would not say whether the board is planning
to vote on the understanding between American Express and
Nippon Life. The Shearson stake is to be sold for 530 mln dlrs,
American Express has said.
    The spokesman also would not comment on speculation that
the board was to discuss a sale of securities to the public.
    Monday's board meeting is a regular monthly meeting. The
plan to sell part of Shearson to Nippon Life must be approved
by the American Express board and Japan's Ministry of Finance.
    Earlier, American Express and Shearson said they were
subpoenaed by the Securities and Exchange Commission. American
Express said it was subpoenaed for documents pertaining to
securities transactions of American Express and Fireman's Fund.
Shearson was subpoenaed for documents related to transactions
with Jefferies and Co and others.
    The American Express spokesman said he could not comment on
whether any officials of the firm were subpoenaed.


.I 13562
.C
crude;nat-gas;fuel;
.W
NATURAL GAS SEEN RECAPTURING SOME MARKET SHARE.
    By NAILENE CHOU-WIEST, Reuters
    NEW YORK, March 17 - Higher crude oil prices will raise
demand for natural gas, helping it to reclaim market share lost
to heavy oil when prices plunged in 1986, analysts said.
    The analysts said that these efforts will be most
successful in the industrial sectors of the economy with large
and growing energy requirements.
    "Natural gas stands a good chance to recapture the share of
oil supplied to electric utilities that it lost to the residual
fuel industry last year," Michael Smolinski, an energy
economist with Data Resources Inc, told Reuters.
    An estimated 200,000 barrels per day of residual fuel went
into the utilities market at the expense of natural gas last
year when world oil prices plunged, Smolinski said. 
    Assuming oil prices hold above 15 dlrs a barrel, national
average gas prices delivered to the utilities at a projected
2.10 to 2.25 dlrs per mln Btu would be very competitive,
Michael German, vice president of economic analysis at American
Gas Association said.
    The average delivered prices at the end of January were
2.10 dlrs per mln Btu, compared with 3.26 dlrs a year ago.
    "We expect natural gas to regain 250 to 400 billion cubic
feet (of demand) in the overall energy market in the second and
third quarter (1987)," he said.
    In addition to price competitiveness, availability will be
an important factor persuading energy users to switch to gas,
Frank Spadine, senior energy economist with Bankers Trust Corp.
in New York noted.
    Spadine said the mild winter in many parts of the North
American continent has led to a build up of gas inventories and
less would be necessary to replenish underground storage this
spring freeing gas for spot sales.
    These forecasts develop a strong counterpoint to the fears
that natural gas suplies would be tight and prices
significantly higher given a sharp decline in drilling last
year.
    AGA's German contended that despite the drilling decline,
much of U.S. proved reserves could be brought to production
quickly through developments such as the infill drilling which
permits more wells to be drilled in proved reserve basins.
    Citing recent EIA statistics, German said, the gas surplus
was likely to contract from three trillion cubic feet in 1986
to two trillion cubic feet in 1987, but the surplus would not
go away until 1990.
    Smolinski of Data Resources agreed that the surplus would
persist until 1990. While gas supplies may tighten in certain
consuming areas, notably in California and in the Northeast
U.S., an overall shortfall appeared remote.


.I 13565
.C
trade
.W
U.S. SENATORS SAY SANCTIONS LIKELY ON MICROCHIPS.
    By Jacqueline Frank, Reuters
    WASHINGTON, March 20 - The United States will likely impose
sanctions soon on imports of Japanese microchips, senators said
today after a private meeting with Commerce Secretary Malcolm
Baldrige.
    Although the senators said Baldrige told them no decision
would be taken until a final determination is made on whether
Japanese microchips were dumped in the United States, they said
they were virtually sure Japan would face penalties.
    President Reagan's trade policy advisory group, of which
Baldrige is a member, will meet on the issue Wednesday.
    "I am confident we will see action taken," Sen. John McCain,
an Arizona Republican, told reporters.
    "I am expecting sanctions at least, and even more than
sanctions," Sen. Pete Domenici, a New Mexico Republican, said.
    The senators, several congressmen and U.S. semiconductor
industry representatives met with Baldrige and State Department
officials to discuss Japan's alleged violations of a September
1986 agreement to stop dumping its microchips in the United
States and other countries.
    They recommended Japanese firms be penalized through
tariffs or import duties over the next six to 12 months for
continuing to dump microchips. The violations were worth 100
mln dls to the Japanese semiconductor industry, they said.
    Asked if Baldrige intended to recommend sanctions, Sen.
Pete Wilson told reporters, "The clear import of what he said is
that there will be."
    "Japan can't just say they will comply. We think sanctions
must be applied," for past violations of the agreement, the
California Republican said.
    The semiconductor industry produces microprocessor chips
which are used in high technology products ranging from radios
to defence missile guidance systems.
    Sen. James McClure, an Idaho Republican, said Baldrige told
them the administration had not made a final determination that
Japanese companies had dumped semiconductor microchips below
the cost of production in the United States or other countries.
    But McClure said senators told him, "There is no doubt
dumping is going on," based on evidence such as invoices of
purchases of the Japanese products.
    The two countries signed a pact last September in which
Japan agreed to stop selling its microchips in the United
States and other countries below production costs and to allow
the U.S. semiconductor industry access to the Japanese market.
    In return, the United States waived its right to impose
import duties on the Japanese microchips.
    Japanese officials have said they have lived up to the pact
and have asked Japanese chip-makers to further slash output to
save the pact.
    Japan has frequently been the target of congressional
discouragement over last year's record 169-billion-dlr trade
deficit. Tokyo had a 59-billion-dlr surplus with the United
States last year and had large surpluses with other countries.
    The Senate yesterday unanimously passed a resolution
calling for action against Japan for violations of the pact
since September. The resolution will be introduced in the House
next week by Rep. Bob Matsui, a California Democrat.


.I 13566
.C
earn
.W
MULTI-MEDIA SEES YEAR END LOSS.
    NEW YORK, March 20 - Multi-Media Barter Ltd said it expects
to report a net loss of 820,000 dlrs or 17 cts a share for the
year ended December 31, compared to a loss of 553,000 or 11 cts
a share in the prior year.
    The fourth quarter resulted in a net loss of 227,000 or
four cts compared to a loss of 330,000 or six cts a shares last
year.
    It said it is currently in the process of restructuring by
reducing expenses and streamlining operations and has cut
expenses from 50,000 dlrs to less than 15,000 dlrs a month.


.I 13568
.C
earn
.W
NATIONAL HMO CORP <NHMO> 2ND QTR JAN 31.
    MELBOURNE, Fla, March 20 -
    Shr loss nine cts vs profit nine cts
    Net loss 478,000 vs profit 371,000
    Revs 3.4 mln vs 2.6 mln
    Six months
    Net loss 466,000 vs profit 685,000
    Revs 6.2 mln vs 5.0 mln
    NOTE:1987 net loss includes writeoff of deferred start up
costs totaling 490,000 dlrs.


.I 13569
.C
earn
.W
MINORCO <MNRCY> HALF YEAR DEC 31.
    TORONTO, ONtario, March 20 -
    Shr 26 cts vs 38 cts
    Net 44.0 mln vs 65.0 mln
    NOTE:1986 net includes one mln dlr extraordinary gain and
1985 net icludes four mln dlrs extraordinary loss.


.I 13571
.C
earn
.W
MINORCO <MNRCY> SEES IMPROVED SECOND HALF.
    TORONTO, Ontario, March 20 - Minorco said it expects net
earnings to be substantially stronger than the 44.0 mln dlrs
reported for the first half.
    In reporting that first half results declined from 65.0 mln
dlrs, Minorco said the contributions from its 50 pct investment
in December 1985 in Adobe Resources Corp was negative as a
result of low oil and gas prices.


.I 13572
.C
earn
.W
MINORCO <MNRCY> SEES IMPROVED SECOND HALF.
    TORONTO, Ontario, March 20 - Minorco said it expects net
earnings to be substantially stronger than the 44.0 mln dlrs
reported for the first half.
    In reporting that first half results declined from 65.0 mln
dlrs, Minorco said the contributions from its 50 pct investment
in December 1985 in Adobe Resources Corp was negative as a
result of low oil and gas prices.


.I 13576
.C
tin
.W
ECONOMIC SPOTLIGHT - BOLIVIA.
    By Paul Iredale, Reuters
    LA PAZ, March 20 - Bolivia, once Latin America's most
delinquent debtor, is preparing for a second International
Monetary Fund agreement after an economic stabilisation program
has effectively slowed inflation and reduced public spending.
    A fund spokesman said an IMF team would visit La Paz
shortly to discuss terms of the new agreement.
    He said the IMF had disbursed 130 mln dlrs here and 20 mln
dlrs are pending under the one year agreement that ends this
month. The accord provided for a stand-by loan, a compensatory
financing facility and a structural adjustment facility.
    The spokesman said that if the agreement is renewed,
Bolivia can expect a further 60-mln-dlr stand-by loan over the
next 12 months.
    Bolivia's agreement with the IMF, its first since 1980,
opened the door to rescheduling negotiations with the Paris
Club and Argentina and Brazil, which hold 2.5 billion dlrs of
Bolivia's 4.0-billion-dlr foreign debt.
    Central Bank President Javier Nogales told Reuters the
negotiations with the Paris Club, which have yet to be
finalised, had been extremely successful.
    Nogales said the Paris Club had agreed to reschedule
Bolivia's debt over 10 years with five to six years grace and
had waived all interest payments until the end of 1988.
    Bilateral discussions on interest rates continue, he said.
    Nogales said Bolivia was expecting some 400 mln dlrs in
disbursements this year from lender countries and international
agencies, including the World Bank and the Inter-American
Development Bank, although diplomatic and banking sources put
the figure at closer to 300 mln dlrs.
    Nogales said Bolivia's net international reserves are
around 250 mln dlrs, up from one mln dlrs when President Ictor
Paz Estenssoro took office in august 1985. Nogales said the
capital flow on Bolivia's debt servicing versus new credits had
changed from a net outflow of 200 mln dlrs in 1985 to a net
inflow of 130 mln dlrs in 1986.
    Bolivia's return from the financial wilderness follows paz
estenssoro's economic stabilisation program. He inherited
inflation of 23,000 pct a year, state enterprises that were
losing hundreds of mlns of dlrs and a currency that traded on
the black market at up to 16 times its official rate.
    Paz estenssoro froze public sector wages, set a market-
related rate for the peso, introduced tax reforms and laid off
thousands of workers in state corporations.
    Inflation has been running at 10 pct a year for the past
six months, according to the Central Bank, and the government 
expects the economy to grow three pct this year after a 14 pct
contraction over the last six years.
    The government is also proposing a novel solution to its
debt to commercial banks, some 900 mln dlrs, on which interest
has not been paid since March, 1984.
    Nogales said that over the next few months Bolivia would
make a one-time offer to buy back all its commercial debt at
the price it trades on the international secondary market -- 
10-15 cents on the dlr. He said Bolivia's commercial bank
steering committee agreed at a meeting in New York to consider
the proposal, but it is still unclear what proportion of the
country's creditor banks will take up the offer.
    One foreign banker speculated that Bolivia might be able to
buy back up to 30 pct of its commercial debt paper under the
deal, mostly from small banks who have written off their loans
to the country.
    But he said the larger creditors were more interested in a
scheme of debt-equity swaps, similar to that which has operated
in Chile for the past two years.
    The Bolivian government has yet to draw up proposals for
debt-equity swaps, but the banker said it was planning to
privatise more than 100 state companies and these could serve
as a basis for such a scheme.
    Foreign bankers said this type of proposal might prove
attractive to Bolivia in the long run, especially as the
government realises that it will have to attract a large amount
of new capital in order to grow.
    Planning Minister Gonzalo Sanchez de Lozada told Reuters
that Bolivia was hoping for five to six billion dlrs in new
investment over the next 10 to 12 years.
    The government realises that in order to remain viable,
Bolivia will need to develop new exports.
    The price of tin, which accounted for some 45 pct of
Bolivia's exports in 1984, has collapsed on the world markets,
and gas, the country's major revenue earner, is in abundant
supply in the region.


.I 13577
.C
earn
.W
NEOAX INC <NOAX> 4TH QTR.
    LAWRENCEVILLE, N.J., March 20 -
    Shr loss 13 cts vs loss six cts
    Net loss 1.4 mln vs loss 635,000
    Revs 40.3 mln vs 28.5 mln
    Year
    Shr profit 40 cts vs profit 26 cts
    Net profit 4.2 mln vs 2.6 mln
    Revs 166.4 mln vs 94.6 mln
    NOTE:1986 4th qtr and year net reflects dividend
requirements of 1.5 mln dlrs and 3.3 mln dlrs, and charges of
257,000 dlrs and 4.6 mln dlrs respectively which is not
accruable or payable because of pre-reorganization tax loss
carryforwards.
    1985 4th qtr and year net reflects dividend requirement of
1.1 mln dlrs and 2.3 mln dlrs, respectively, and charges of
472,000 dlrs and 2.9 mln dlrs respectively which is not
accruable or payable because of pre-organization tax loss
carryforwards.


.I 13581
.C
rubber
.W
MAIN FEATURES OF NEW RUBBER PACT.
    GENEVA, March 21 - The new International Natural Rubber
Agreement (INRA), like the 1979 pact, will use a buffer stock
as the sole instrument for market intervention -- excluding
export quotas or production controls.
    The new INRA was adopted yesterday at a session held under
the auspices of the United Nations Conference on Trade and
Development (UNCTAD).
    In many respects the main features in the new pact resemble
those contained in the present one.
    The reference price, currently 201.66 Malaysian/Singapore
cts per kilo, will be maintained -- unless between now and
October 22, when the 1979 INRA expires, the average of the
daily market indicator price remains above the upper
intervention ("may sell") price (231 cts) or below the lower
intervention ("may buy") price (171 cts) for six months.
    If this happened -- but delegates said it was unlikely
considering that the present indicator price averages 196 cts
-- the price would be revised under the current accord by five
pct or by whatever amount the International Natural Rubber
Council decides.
    The new reference price would then be taken over for the
new agreement.
    Under the same circumstances in the new pact the reference
price would be automatically revised by five pct unless the
Council decides on a higher percentage.
    Similarly, if buffer stock purchases or sales amounting to
300,000 tonnes have been made since the last revision, the
reference price will be lowered or raised by three pct unless
the Council decides on a higher percentage.
    Another change introduced in the new INRA is that price
reviews will be held at 15-month intervals instead of 18.
    Those changes are intended to make the reference price more
responsive to market trends.
    As in the present accord the "may buy" and "may sell" levels
are set at plus or minus 15 pct of the reference price, and the
"must buy" and "must sell" levels at 20 pct of it.
    The lower and upper indicative prices (floor and ceiling
prices) will remain fixed at 150 and 270 cents, unless the
Council decides to revise them at reviews held every 30 months.
    During the negotiations, consumers abandoned a proposal
that the floor price be adjusted downward if the buffer stock,
currently 360,000 tonnes, rose to 450,000 tonnes.
    The maximum size of the buffer stock in the new pact is the
same as under the present one -- 400,000 tonnes, with provision
for an additional contingency buffer stock of 150,000 tonnes.
    Under the new accord, the contingency buffer stock will be
brought in at 152 cts to defend the floor price.
    At last Friday's session, Ahmed Farouk, speaking for
producers, said producing nations considered that the 1979 pact
had served the purpose for which it had been created.
    Gerard Guillonneau of France, who spoke for consumers,
agreed that the current agreement had worked "relatively well."
    Asked about the chances of success of the new INRA,
delegates noted that for nearly its whole life, the 1979 accord
had maintained the average price above the "must buy" level.
    They said the agreement until now did not appear to have
encouraged excessive production of rubber.
    In addition, provisions for borrowing to finance the buffer
stock have now been eliminated, ruling out speculation. "It is a
sort of middle-of-the-road agreement," one delegate said.
    The new pact will be open for signature at U.N.
Headquarters in New York from May 1 to December 31 this year.
    To become operational, it will require ratification by
countries accounting for 75 pct of world exports and 75 pct of
world imports.
    Delegates estimate that this will take 12 to 14 months from
now. During the hiatus between the two agreements, the
International Natural Rubber Council will remain in place.
    The pact will enter into force definitively when
governments accounting for 80 pct of world exports and 80 pct
of world imports have ratified it.


.I 13584
.C
ipi
.W
TAIWAN INDUSTRIAL OUTPUT FALLS, CURRENCY BLAMED.
    TAIPEI, March 21 - Taiwan's industrial production index,
fell, largely as the result of the rising Taiwan dollar, by
8.18 pct to 140.06 (base 1981) in February from a revised
152.53 in January, the Economy Ministry said.
    It was the second consecutive monthly fall, after dropping
nine pct in January, but it was still 26.49 pct up on February
1986 following a very extended rise last year.
    The January figure was revised from a preliminary 154.82.
    A ministry official attributed the decline to falling
production of non-metal products, textiles and transportation
equipment, and less mining and house construction.
    The official said the decline was also caused by falling
exports in February due to the climb of the Taiwan dollar,
which has made Taiwanese products more expensive.
    He expected the decline to continue in the next few months
because of further appreciation of the local dollar against the
U.S. Currency.
    The Taiwan dollar advanced more than 15 pct against the
U.S. Dollar since September 1985. It closed at 34.40 to the
U.S. Dollar today, and is expected to rise to about 32 to the
dollar by the end of this year, foreign bankers and economists
said.


.I 13585
.C
money-fx
.W
NO ZIMBABWE DOLLAR DEVALUATION - CENTRAL BANK.
    HARARE, March 21 - Zimbabwe's Reserve Bank, the nation's
central bank, has denied the Zimbabwe dollar would be devalued.
    Bank Governor Kombo Moyana told The Herald daily newspaper
"unfortunate and completely unfounded speculation that a
depreciation of the Zimbabwe dollar was about to occur" had
aggravated a serious foreign exchange shortage.
    "During February and the early part of March this
(speculation) caused importers to bring forward their payments
and exporters to delay as long as possible the inward
remittance of export receipts, resulting in a significant
slowdown in net foreign exchange inflows," he added.


.I 13589
.C
gold
.W
FORMER GOLD FIRM EXECUTIVES ARRESTED IN JAPAN.
    OSAKA, Japan, March 21 - The public prosecutors and police
here arrested five former senior executives of a bankrupt gold
deposit business group for defrauding about 450 clients of
about 1.5 billion yen for gold bars which were never delivered,
police said.
    The case involving the Toyota Shoji Company was highlighted
when its 32-year-old Chairman Kazuo Nagano was stabbed to death
here in public view in June, 1985.
    Television crews which had been waiting outside Nagano's
home filmed two men smashing their way into the home and later
emerging with a bloodstained bayonet.
    The company, established here in 1981, undertook to hold
gold on deposit for investors. It grew into a nationwide
business operation with 87 branch offices and 7,000 employees
at its peak in early 1985.
    Toyota Shoji's business group collected an estimated 200
billion yen from about 30,000 clients, many of them pensioners
and housewives, before the firm went bankrupt in July, 1985,
according to lawyers.
    Of them, some 18,000 clients claimed they could get back
neither gold or money, suffering an aggregate loss of 150
billion yen, local press reports said.
    Police said the five arrested on charge of fraud today
included Hiroshi Ishikawa, 47, former Toyota Shoji president,
and a sixth former executive was placed on a wanted list.
    They were suspected of having collaborated with the late
Nagano in swindling about 1.5 billion yen from about 450 people
in Osaka and nearby Kobe during a six month period just before
the firm's bankruptcy, they said.
    Today's arrest came after narly two years of joint
investigation by the public prosecutors and police, who had
questioned about 3,000 of the firm's former employees,
police sources said.


.I 13590
.C
crude
.W
WORLD BANK LIKELY TO URGE CHANGES ON JAKARTA.
    By Jeremy Clift, Reuters
    JAKARTA, March 22 - World Bank President Barber Conable is
expected to press Indonesia, the Third World's sixth largest
debtor, to maintain the momentum of economic policy changes to
tackle the slump in its oil revenues, western diplomats said.
    Conable, who flew to Indonesia yesterday from Tokyo, will
meet with President Suharto and senior economic ministers.
    He said on arrival that the economy of South-East Asia's
largest nation was being managed well, but the slump in world
oil prices called for major policy adjustments.
    Today the World Bank chief will visit Bank-funded projects
in the eastern section of Java, Indonesia's most populous
island. He will see Suharto on Tuesday after a day of detailed
discussions with ministers tomorrow.
    Indonesia, the only Asian member of OPEC, has been severely
hit by last year's crash in oil prices, which cut its oil and
gas revenues in half.
    Japan's state Export-Import Bank last month agreed to
provide around 900 mln dlrs in untied credits to help Indonesia
pay for its share of 21 World Bank development projects.
    Indonesia, a country of 168 mln people, has responded to
the oil slump by cutting spending, devaluing its currency by 31
pct, and trying to boost exports, while using foreign loans to
bridge its deficit.
    Diplomats said that Conable was expected to press Suharto
and leading economic ministers to maintain the pace of policy
change, particularly in dismantling Indonesia's high-cost
protected economy.
    "Oil prices, the debt crisis, the world recession, all call
for major policy adjustments and external support," Conable said
in his arrival statement.
    But with Indonesia facing parliamentary elections next
month, he is likely to avoid anything which would imply that
the Bank is demanding specific changes.
    "We believe there has been wise leadership here and the
economy is being very well managed," Conable told reporters at
Jakarta airport.
    Indonesia has official and private overseas debts totalling
37 billion dlrs, according to the Bank, which makes it the
Third World's sixth biggest debtor. It has received 10.7
billion dlrs from the World Bank since 1968.
    Conable did not spell out what further changes he would
like to see. Last month the Bank endorsed economic changes
already introduced by Indonesia, but implied it wanted more.
    Giving a 300 mln dlr loan in balance of payments support,
the Bank said it will monitor progress on implementation of the
government's trade reform measures, and supported its
determination to promote efficiency and longer-term growth.
    Indonesia has introduced a series of measures since last
May to boost non-oil exports, liberalise trade and encourage
outside investment.
    Suharto has also ordered a government committee to look
into which of Indonesia's 215 state-run companies could be
sold.
    But in a report last month, the U.S. Embassy said the
government appeared divided over how far to take its reforms.
    Western analysts say that in particular the government is
unsure how far to go with dismantling Indonesia's high-cost
monopolies, which control core areas of the economy.
    Central bank governor Arifin Siregar said this week that
Indonesia faced very limited economic choices.
    It could not spend its way out of trouble because this
would increase the balance of payments deficit and domestic
inflation.
     He said the main objective was to raise exports outside
the oil and natural gas sector.
    Indonesia's current account deficit is projected by the
government to fall to 2.64 billion dlrs in the coming financial
year which starts on April 1, from an estimated 4.1 billion in
1986/87.


.I 13595
.C
money-fx
.W
NIGERIA CHANGES AUCTION RULES TO DEFEND THE NAIRA.
    By Nick Kotch, Reuters
    LAGOS, March 22 - Nigeria's Central Bank has changed the
rules governing its foreign exchange auctions in what analysts
see as a means of defending the naira currency, which has
depreciated steadily.
    The bank said in a statement that from April 2, banks
bidding for foreign exchange would have to pay at the rate they
offered and not, as presently, at the rate of the lowest
successful bid made at the auction.
    This should discourage banks from bidding high to ensure
that they were successful while paying the lower "marginal" rate,
analysts said.
    "It should act as a brake because banks will know that if
they bid high they will have to pay what they offered," a
Western diplomat commented.
    The naira has depreciated against the dollar by 62 pct
since the auctions, known as the Second-Tier Foreign Exchange
Market (SFEM), began last September 26.
    At last week's session the Nigerian currency was fixed at
4.0 to the dollar, the third fall in a row.
    "They were clearly worried... And this is the logical way of
trying to stop the trend," the diplomat said.
    The Central Bank also announced the auctions would be
fortnightly, not weekly, beginning on April 2.
    It was not immediately clear whether next Thursday's
scheduled session would still take place, nor if the bank was
planning to double the 50 mln dlrs which are normally on offer
at each auction.
    Demand for foreign exchange has consistently outstripped
supply, encouraging banks to bid high and thus further
weakening the naira.
    If the normal weekly allocation is not doubled at the
fortnightly session, high demand could undermine the objective
of the new system, analysts said.
    Although bidding banks will now pay what they offered, the
official exchange rate for the naira applying to business
transactions will continue to be the marginal rate -- the
lowest successful bid.
    SFEM is a central part of Nigeria's structural adjustment
program, which is considered to be the most ambitious economic
recovery plan in Black Africa.
    The program involves setting a realistic exchange rate for
the naira, which was over-valued for many years, liberalising
imports, boosting agriculture, removing subsidies and reducing
inefficient government participation in the economy.
    The World Bank has played a prominent part in designing
this dramatic blue-print and in selling it to an often
sceptical public which fears inflation and lower living
standards.
    Ishrat Husain, the World Bank's representative in Nigeria,
said yesterday he was satisfied both with the adjustment
program as a whole and the foreign exchange auctions.
    "So far so good" he told a meeting of bankers in Lagos,
adding that only members of Nigeria's import-dependent elite
would suffer hardship while the common man would benefit.
    Fears that the program would encourage inflation were
incorrect, he said.
    Bumper harvests had reduced rural inflation and urban
prices had already reflected the naira's black market value
before the currency was allowed to find its true level last
September.


.I 13601
.C
trade
.W
NEXT WORLD TRADE NEGOTIATIONS MUST SUCCEED - NZ.
    By Christopher Pritchett, Reuters
    TAUPO, New Zealand, March 22 - Ministers from more than 20
nations were told by New Zealand that the next international
negotiations on liberalising trade would be the last this
century and the cost of failure could not be measured.
    Trade minister Mike Moore told his colleagues at a
welcoming ceremony before two days of talks here that great
progress had been made in preparing for the negotiations which
must not be sidetracked.
    "We live in troubled and dangerous times for the world
trading system," he said.
    "We have seen that the failure of the world trading system
has caused great depression and conflict in the past. Our
failure to maintain the momentum will be at great cost to us
all," Moore said.
    He added: "The cost of failure is beyond calculation. It is
our last hope and best opportunity this century. We will not
get another chance before the year 2000."
    The ministers are in New Zealand to review world trade
since the "Uruguay round" talks last Sepember. The meeting is
also part of preparations for a full-scale conference of the
General Agreement on Tariffs and Trade (GATT) in Venice in
June.
    The Uruguay meeting is considered by most countries to have
been particularly successful, with northern hemisphere
countries managing to have service industries such as banking
and insurance included in the next full round.
    The southerners' goal of including agricultural and
tropical products also was met.
    The meeting at this North Island tourist resort is
described by participants as informal and no declaration is
expected.
    Moore said one aim was to "instil a sense of political
urgency to avert potential economic tragedy."
    Another was to seek ways of popularising freer trade to
people who felt the pain of readjustment but could not see the
benefits, as well as preventing "bush fires of confrontation
while we proceed with orderly negotiations."
    The meeting is being attended by 25 overseas delegations
including representatives of GATT and the Economic Community.
    The delegates include U.S. Trade Representative Clayton
Yeutter.
    American sources say he is ready to state that the best way
to reverse protectionist sentiment in the United States is to
implement four key Uruguay proposals:
    -- an end to agricultural subsidies;
    -- inclusion of trade in services and investments in GATT
regulations;
    -- tightening of restrictions on pirating of so-called
intellectual property such as trademarks, patents and
copyrights;
    -- new rules to resolve trade disputes among GATT's 92
member states.
    Earlier, New Zealand sources had said French Foreign Trade
Minister Michel Noir had pulled out of the informal GATT talks
for domestic political reasons.
    Cabinet chief Bernard Prauge will lead the French
delegation.


.I 13606
.C
acq
.W
AUSTRALIAN OFFER FOR SAN MIGUEL SHARES.
    MANILA, March 22 - Diversified investment company, <Ariadne
Australia Ltd>, has offered 3.8 billion pesos for 38 mln shares
in the Philippine brewing firm <San Miguel>, a Manila newspaper
reported.
    The Sunday Times quoted a letter sent yesterday to
President Corazon Aquino from Ariadne's chairman, New Zealander
Bruce Judge, that he was offering cash equivalent to five pct
of the nation's yearly budget to buy the shares from the
government.
    The presidential office and Ariadne representatives in
Manila were not available for comment on the report.
    The shares are the entire block seized by the government
from the United Coconut Planters Bank (UCPB) on suspicion that
the real owner was Eduardo Cojuangco, the former chairman of
San Miguel and UCPB and a close associate of deposed president
Ferdinand Marcos.
    The 38 mln shares consist of 24 mln class A stock and 14
mln class B shares.
    Government officials have said earlier that the more
valuable class A shares would not be sold to foreigners.
    The offer values each share at 100 pesos -- the price at
which the Philippine Social Security System suggested it might
buy eight mln class A shares last week.
    "Judge's offer of 3.8 billion pesos is about five pct of the
Philippines' yearly budget," Ariadne's Philippine agent Domingo
Panganiban was quoted as telling reporters yesterday.
    "Mr Judge's objective in this investment is to make his
corporation's management expertise available to San Miguel so
that the company's assets can be fully utilised."
    San Miguel, the country's largest brewer, is also one of
the major manufacturers of grocery lines.
    Panganiban is quoted as saying that San Miguel could tap
food and liquor distribution lines in Australia, Britain, the
U.S., New Zealand and Hong Kong through <Barwon Farmlands Ltd>,
a listed Australian firm in which it has 30 pct equity.
    Ariadne, with about one billion dlrs in assets and turnover
of about two billion, has interests also in mining, real estate
and agricultural products.


.I 13607
.C
veg-oil
.W
INDONESIA PROTESTS AGAINST EC VEGETABLE OIL DUTY.
    JAKARTA, March 22 - Indonesia has protested to the European
Community (EC) about its plan to raise import duties on
vegetable oils, which will affect the country's palm oil
exports to the EC, Trade Minister Rachmat Saleh said.
    "Indonesia, both individually and together with other
members of the Association of South-East Asian Nations (ASEAN),
has protested against the EC plan to increase duties on
vegetable oil imports," he told Indonesian reporters.
    "We very much regret the community's plan," he added.
    He did not say in what form the Indonesian protest was
made.
    Indonesia is a major palm oil producer.
    According to central bank figures, Indonesia exported
362,700 tonnes of crude palm oil to EC countries in calendar
1985 and 301,400 tonnes in the first 10 months of 1986.
Complete 1986 figures are not yet available.
    Finance Minister Radius Prawiro said recently that the
increase in EC duties would add a new burden to ASEAN countries
at a time when they were trying to strengthen their economies
in the face of lower commodity prices.


.I 13608
.C
earn
.W
ALITALIA SPA <AZPI.MI> CALENDAR 1986.
    SANREMO, March 22 -
    Provisional net profit 55 billion lire vs 48 billion
    Turnover 3,750 billion vs 3,369 billion.
    NOTE -  Official results for Alitalia, Italy's national
airline which is controlled by the state industrial holding
company (Istituto per la Ricostruzione Industriale -IRI), are
expected to be announced at an annual shareholders meeting in
April.


.I 13609
.C
pet-chem
.W
RAIMOND EXPECTS EC-GULF PROBLEMS WILL BE SOLVED.
    ABU DHABI, March 22 - French Foreign Minister Jean-Bernard
Raimond predicted in a published interview a successful end to
negotiations to admit Gulf petrochemical exports into the
European Community (EC).
    Negotiations have been under way between the Community and
the six-nation Gulf Cooperation Council (GCC) for three years.
    Raimond, due here tomorrow from Oman for his first official
visit to the United Arab Emirates (UAE), told the semi-official
daily Al-Ittihad he was confident a solution would soon be
reached.
    "I am confident that problems between the two big partners,
the GCC and the EC, will find a solution. I will work to reach
that solution," he said in the interview conducted in Paris.
    An EC decision to impose tariffs on Gulf petrochemical
exports over a set quota has strained trade relations between
the two sides.
    GCC members Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE
and Oman are threatening to impose heavy customs duties on
European exports to the Gulf if no solution is reached.
    Raimond said negotiations between the two groups took a
long time because there were 20 countries involved. But added:
"Time is now ripe and all circumstances are appropriate for
making crucial progress."
    Referring to the Iran-Iraq war, he said efforts should
continue to find a solution despite prevailing difficulties.
    He said France was continuing negotiations with Iran. Some
problems were solved as a result of the contacts while others
remained unresolved. He gave no details but said: "France wishes
to have normal relations with Iran."


.I 13610
.C
crude
.W
EXPLOSION AT BP OIL REFINERY IN SCOTLAND.
    GRANGEMOUTH, Scotland, March 22 - An explosion followed by
a fire ripped through a British Petroleum (BP) oil refinery,
killing one man.
    A BP spokesman said the fire was confined to one plant at
the 700-acre refinery at Grangemouth, 25 miles west of
Edinburgh. The cause and extent of the damage had yet to be
determined.
    Two people were killed in a previous explosion and fire at
the plant on March 13. That incident is still being
investigated, the spokesman said.


.I 13612
.C
acq
.W
AUSTRALIAN PLANS PHILIPPINE BRANCH FOR TAKEOVER.
    HONG KONG, March 22 - The Australia based <Ariadne
Australia Ltd>, plans to set up a branch in the Philippines to
fulfill a prerequisite for the takeover of the Philippine
brewing firm, <San Miguel Corp>, a Hong Kong newspaper said.
    The Hong Kong Economic Journal quoted a spokesman of
Australian stock broker Jacksons Ltd as saying that <Barwon
Farmlands Ltd>, a listed Australian firm of which Ariadne owns
a 30 pct stake, is planning a branch in the Philippines.
    He added Jacksons is arranging an offer by Barwon to pay a
total 3.8 billion pesos in cash for 38 mln San Miguel shares.
    Barwon is offering 100 pesos each for 24 mln class A San
Miguel shares and 14 mln class B stock. But the Jacksons
spokesman noted that the more valuable A stock would only be
sold to Filipinos or companies registered in the Philippines.
    He said Barwon has approached the Philippine government
which seized the block of shares from the United Coconut
Planters Bank, which is believed to be linked with the
country's deposed President Ferdinand Marcos.
    He added he expects a deal to be concluded between Barwon
and the Philippine Government in 14 days as it is the only
offer in cash, the newspaper reported.
    Hong Kong Economic Journal also noted stock market rumours
that <Neptunia Corp>, a Hong Kong registered company which
controlled by San Miguel's president Andres Soriano, is the
other party keen on the block of San Miguel shares.
    The Philippine's Commission on Good Government ruled last
May against a move of Neptunia to acquire 33 mln San Miguel
shares controlled by the brewery firm's former chairman Eduardo
Cojuangco, who is also chairman of United Coconut.
    Commissioner Ramon Diaz said at the time the government
would not allow a subsidiary to buy into a parent firm, adding
San Miguel could have offered the shares to other parties.
    The Manila newspaper Sunday Times published a letter sent
yesterday to President Corazon Aquino from Ariadne's chairman,
New Zealander Bruce Judge, that he was offering cash equivalent
to five pct of the nation's yearly budget to buy the shares
from the government.
    "Judge's offer of 3.8 billion pesos is about five pct of the
Philippines' yearly budget," Ariadne's Philippine agent Domingo
Panganiban was quoted as telling reporters yesterday.
    Spokesmen of Ariadne, Jacksons and Neptunia were not
available for comment, nor any officials of the Philippines.
    <San Miguel Brewery Ltd>, a Hong Kong listed company which
is 69.65 pct held by Neptunia on behalf of San Miguel Corp,
closed 40 cents higher at 15.50 H.K. Dlrs on Friday.


.I 13615
.C
earn
.W
ALITALIA REPORTS HIGHER NET PROFITS.
    SANREMO, March 22 - Italy's national airline, Alitalia Spa
<AZPI.MI>, reporting a 14.6 pct rise in provisional 1986 net
profit, said it carried seven pct more passengers on domestic
routes last year, but 11.5 pct fewer passengers on flights from
North America and Canada.
    Alitalia said the drop in North American traffic had been
due to a general fall in the numbers of American tourists
visiting Europe caused by fears of terrorism.
    The airline reported provisional net profit rose to 55
billion lire from 48 billion in 1985.
    A spokesman said Alitalia was hoping for an increase in
traffic with the U.S. In 1987.
    It planned to increase the number of flights from Italy to
New York to 19 per week, to reinstate flights to Boston and to
re-open the direct Rome-Milan-Los Angeles service.
    The spokesman announced that from March 29, Alitalia would
be starting a new weekly service to Shanghai.
    For its summer 1987 programme, it would be adding 127 extra
flights to European destinations -- an increase of 27 pct.


.I 13617
.C
earn
.W
RAFIDAIN BANK'S JORDAN BRANCH RAISES CAPITAL.
    AMMAN, March 22 - The Jordan branch of Iraq's Rafidain Bank
said it will raise paid-up capital to comply with the country's
minimum requirement of five mln dinars by drawing on profits
from its operations in the country.
    Jordan's government asked banks in early 1985 to comply
with the new capital requirement -- raised from three mln
dinars -- by the start of 1986.
    Rafidain's Area Manager Adnan Abdul Karim al-Azzawi told
Reuters the branch had now registered its capital at the higher
level but did not say how long it would take to pay it in. The
bank's 1986 balance shows paid-up capital of 3.1 mln dinars.
    Banks in Jordan have generally complied with the higher
capital requirement except Chase Manhattan which decided
instead to close its operation, banking sources said.
    Local banks floated shares to raise extra capital, while
the branches of foreign banks brought in additional cash.
    Banking sources said it appeared that Jordan had made an
exception in Rafidain's case, allowing it longer to comply.
They said the gesture refelcted close political ties between
Jordan and Iraq as well as Baghdad's financial difficulties.
    The Jordan branch saw pre-tax profit rise 80 pct in 1986 to
550,332 dinars on assets of 12.6 mln dinars.


.I 13618
.C
dlr;money-fx;
.W
BAKER DENIES DOLLAR TARGET EXISTS.
    LONDON, March 23 - U.S. Treasury Secretary James Baker
again said the meeting of six major industrial nations in Paris
last month did not establish a target exchange rate for the
dollar.
    Baker said in a television interview aired here yesterday:
"We don't have a target for the dollar." He declined to comment
on what might be a desired level for the dollar, saying: "We
really don't talk about the dollar."
    He said protectionism was becoming "extremely strong" in the
U.S. In response to widening U.S. Trade deficits and import
barriers in other countries.
    "The mood in the United States is extremely disturbing. It's
extremely strong," he said.
    "As I've said before, we sort of see ourselves as engaged
here in a real struggle to preserve the world's free trading
system, because if the largest market in the world (the U.S.)
goes protectionist we run the risk of moving down the same path
that the world did in the late 1930s," he said.
    While relative exchange rates had a role to play in
defusing the threat of protectionism, it alone did not offer
any solution, he said.
    "You must address this problem on the exchange rate side,
but it cannot be solved on the exchange rate side alone. It's
far more comprehensive and broad than that, and the solution of
it requires a comprehensive approach," Baker said in the
interview.
    Baker said it would be necessary for other countries to
adjust their currencies upwards, as well as remove their
barriers to U.S. Imports. But he did not elaborate or name any
countries.


.I 13619
.C
money-fx
.W
U.S. CREDIT MARKET OUTLOOK - MINI-REFUNDING.
    By Claire Miller, Reuters
    NEW YORK, March 23 - A hefty slice of new U.S. Treasury
supply is not the most welcome prospect for a slumbering credit
market, but at least this week's offerings should provide it
with some focus, economists said.
    "Banks and mutual funds have cash that should be put to
work, so the auctions should breathe some life into the market,"
said economists at Merrill Lynch Capital Markets Inc.
    The Treasury will place a 25 billion dlr package of
two-year, four-year and seven-year notes on the sales block
this week.
    The "mini-refunding," which will raise 9.27 billion dlrs in
new cash, comprises 10 billion dlrs of two-year notes for
auction on Tuesday, 7.75 billion dlrs of four-year notes on
Wednesday and 7.25 billion dlrs of seven-year notes on
Thursday. The market also faces the regular weekly three- and
six-month bill auction today, amounting to 12.8 billion dlrs.
    The mini-refunding does not come at a particularly
auspicious time for the market. Bond prices have been drifting
sideways in a narrow range against the backdrop of a cloudy
U.S. Economic outlook, diminished chances of a change in
Federal Reserve Board policy and a stable dollar.
    Moreover, the bond market's inertia has compared
unfavourably with the rash of activity taking place in
high-yield markets overseas, like the U.K., As well as in U.S.
Equities.
    But according to the Merrill Lynch economists, there are
signs the pall hanging over the U.S. Bond market is lifting a
bit.
    "Customer activity has been light, but all on the buy-side,
and there is a marked absence of selling," they said in a weekly
report.
    Philip Braverman of Irving Trust Securities Inc believes
banks will snap up the two- and four-year issues at this week's
sales.
    "The banks are in need of investments that provide earnings.
Though the yield spread to the cost of carrying these
maturities has been wider, it is still positive," he said in a
weekly market review.
    But economists agreed not even the auctions will generate
enough impetus for a major move. This will only come once the
overseas markets have had their run.
    "Based on last week's events, there is little to indicate
that the appetite for yield has begun to wane," said economists
at Salomon Brothers Inc.
    Indeed, talk persisted last week that Japanese investors
are planning to re-weight their portfolios in favour of the
higher-yielding markets at the start of Japan's new fiscal year
on April 1.
    And while traditionally the Japanese have not been big
buyers of the shorter-dated issues on offer at this week's U.S.
Auctions, such reports undermine market confidence.
    Even actions by the British, Australian and Canadian
monetary authorities to curb the rise of their currencies
should also enhance the attractiveness of their respective bond
markets, the Salomon Brothers' economists said.
    Meanwhile, ecomomic releases are unlikely to enliven the
U.S. Market unless they deviate widely from expectations,
economists said.
    This week's economic calendar begins on Tuesday with
February durable goods orders. Economists expect a rebound from
January's depressed levels.
    Peter Greenbaum of Smith, Barney, Harris Upham and Co said
several areas, including transport equipment, should have
bounced back. But a decline in military capital goods will cap
total new orders. He forecasts a rise of two pct after
January's 6.7 pct slump. Some other economists foresee a gain
as large as five pct.
    Friday's consumer price report for February is expected to
show an increase of about 0.3 pct after a 0.7 pct January gain.
Economists said energy prices -- the driving force behind the
January rise -- rose more moderately last month, while food
prices declined.
    Meanwhile, economists warned that the federal funds rate
will be subject to volatility in the weeks ahead due to the
approach of quarter-end and the mid-April tax date.
    Some economists expect the Fed to execute a bill pass this
week because its adding requirement increases sharply in the
new statement period beginning on Thursday.
    Fed funds traded at 6-1/16 pct late Friday and are expected
to open near that level.


.I 13621
.C
acq;crude;nat-gas;
.W
SANTOS BIDS FOR OIL AND GAS COMPANY TMOC RESOURCES.
    ADELAIDE, March 23 - Cooper Basin oil producer Santos Ltd
<STOS.S> said it will bid 4.00 dlrs a share for the 96.03 pct
it does not already hold in diversified oil and gas company
<TMOC Resources Ltd>.
    Santos said the bid values TMOC at 248.5 mln dlrs. It said
it already holds 1.91 mln of TMOC's 25 cent par shares.
    TMOC held interests outside the Cooper Basin region of
South Australia and Queensland and the acquisition would
further the Santos objective of developing as a broadly based
oil and gas company with interests outside its existing base in
the Cooper Basin, the company said in a statement.
    Santos said TMOC holds several important domestic oil and
gas production, exploration and pipeline interests.
    In the Northern Territory it has a 43.75 pct stake in and
operates the Mereenie oil and gas field in the Amadeus Basin
and owns 32 pct of <N.T. Gas Pty Ltd>, owner and operator of
the Alice Springs to Darwin gas pipeline.
    In Queensland, TMOC has extensive interests in the Surat
Basin, including the 100 pct owned and operated Moonie oil
field and 33 pct of the Boxleigh gas field.
    TMOC owns 80 pct of the <Moonie Pipeline Co Pty Ltd> which
owns and operates the Moonie to Brisbane oil pipeline.
    TMOC also holds 25 pct of the Jackson to Moonie oil
pipeline, 20 pct owned by Santos. Output from the Naccowlah
block, 40 pct owned by Santos, provides the bulk of the
throughput of both pipelines.
    TMOC has exploration interests in a number of areas in the
Amadeus, Surat, Eromanga and Canning basins.
    It also has oil and gas interests in Britain's North Sea,
Ecuador, and the U.S., Along with gold and base metal
production through its associate <Paringa Mining and
Exploration Co Plc>, Santos said.


.I 13623
.C
trade
.W
GATT SUCCESS WILL TAKE PRESSURE, N.Z. MINISTER.
    TAUPO, New Zealand, March 23 - Long term pressure by trade
ministers is necessary if the current Uruguay round of talks on
the General Agreement on Trade and Tariffs (GATT) is to
succeed, New Zealand's Overseas Trade minister Mike Moore said.
    Moore told the opening meeting of trade ministers from 22
nations gathered for informal talks on the GATT that ministers
"need opportunities to keep in touch and to consider how the
political problems inherent in an exercise like this one can be
faced and resolved."
    Moore said the Taupo meeting is one of a series of such
international gatherings, which includes the OECD ministerial
meeting in May and the G-7 meeting in Venice in June, enabling
ministers to maintain contact.
    World trade conditions are getting better not worse, he
said.
    He said New Zealand is "moving rapidly and of our own
initiative in the direction of liberalisation, and I warn you
we shall be looking for partners."


.I 13624
.C
interest
.W
JAPAN LONG-TERM PRIME SEEN CUT TO RECORD LOW SOON.
    TOKYO, March 23 - Japan's long-term banks will soon cut
their prime rate, now at a record low 5.5 pct, by 0.2 or 0.3
percentage point in response to falling secondary market yields
on their five-year debentures, long-term bankers said.
    The long-term prime rate is customarily set 0.9 percentage
point above the coupon on five-year bank debentures issued by
the long-term banks every month.
    The latest bank debentures, at 4.6 pct, have met strong
end-investor demand on the prospect of further declines in yen
interest rates, dealers said. The current 5.5 pct prime rate
has been in effect since February 28.


.I 13626
.C
coffee
.W
COFFEE CONFERENCE ENDS WITH CALL TO CONTINUE TALKS.
    MANAGUA, March 22 - A meeting of eight Latin American
coffee producers ended with a call for continued talks aimed at
arriving at an agreement to stabilize international prices.
    A statement delivered by the conference's president,
Nicaragua's External Trade Minister Alejandro Martinez Cuenca,
said the object of future meetings would be to seek
negotiations leading to basic export quotas.
    The meeting was attended by representatives from Brazil,
Mexico, Guatemala, El Salvador, Honduras, Costa Rica and
Nicaragua. A Panamanian representative attended the meeting as
an observer.
    Representatives at the meeting said efforts would continue
to be made to reach a regional consensus on export quotas which
could be presented to the International Coffee Organization.
    In opening the meeting, Nicaraguan President Daniel Ortega
said the lack of an accord on export quotas was behind falling
coffee prices, which he said have caused billions of dollars in
losses to countries in the region.
    Jorio Dauster, president of the Brazilian Coffee Institute,
said his government is committed to working towards an
producers accord in order to bring about higher prices.


.I 13627
.C
trade
.W
YEUTTER SEES U.S., JAPAN VERGING ON TRADE CONFLICT.
    TAUPO, New Zealand, March 23 - The United States and Japan
are on the brink of serious conflict on trade, especially over
semiconductors, Japanese unwillingness for public bodies to buy
U.S. Super-computers, and barriers to U.S. Firms seeking to
participate in the eight billion dlr Kansai airport project,
U.S. Trade Representative Clayton Yeutter said.
    He was talking to reporters yesterday on the eve of a
two-day meeting of trade ministers which will review progress
made by committees set up after the Uruguay meeting last
September launched a new round of GATT (General Agreement on
Tariffs and Trade) talks.
    European Community (EC) commissioner Willy de Clercq
meanwhile told reporters conflict between the world's three
major trading and economic powers -- the EC, the U.S. And Japan
-- set a poor example for other members of GATT.
    Australian Trade Minister John Dawkins told the reporters
bilateral retaliation at the enormous expense of the rest of
the world was no way to solve trade disputes.
    New Zealand trade minister Mike Moore told his colleagues
great progress had been made in preparing for the current round
of GATT negotiations which must not be sidetracked.
    The ministers have said they want to maintain the momentum
towards fresh negotiations or avert serious trade conflicts.
    Yeutter said the problem with international trade talks was
that they tended to get bogged down for years. "Countries don't
get very serious about negotiating until the end of the day
which is, maybe, five or six years in the future."
    He also said he did not consider the new U.S. Congress as
protectionist as it was 18 months ago. "That's a very healthy
development," he added."If you asked me about that a year or 18
months ago I would have said that it was terribly
protectionist."
    "Members of Congress, that is the contemplative members of
Congress, have begun to realise protectionism is not the answer
to the 170 billion dlr trade deficit," Yeutter said.
    "They've also begun to realise that you cannot legislate
solutions to a 170 billion dollar trade deficit so they are
more realistic and, in my judgement, more responsible on that
issue than they were 12 or 18 months ago."
    He added, "Whether that will be reflected in the legislation
that eventually emerges is another matter."


.I 13629
.C
nat-gas
.W
NEW COOPER BASIN GAS POOL DISCOVERY REPORTED.
    ADELAIDE, March 23 - <Delhi Petroleum Pty Ltd> said a
second gas flow has been recorded in the Epsilon formation of
the Toolachee Block on PEL five and six signifying a new pool
discovery.
    The Kerna Four appraisal well flowed gas at 235,038 cubic
meters a day with four kiloliters of condensate through a 13mm
surface choke over an interval of 2,374 to 2,399 meters.
    DST 1, in the Epsilon formation, was earlier reported as
flowing gas at 237,862 cm/day, Delhi said in a statement.
    The well is two km south south east of Kerna 3, 15 km south
east of the Dullingari field and 75 km east of Moomba.
    Delhi said the remaining objective of the well is the
Patchawarra formation.
    Other interest holders in the Kerna Four well are: Santos
Ltd <STOS.S> 50 pct, Delhi 30, <Vamgas Ltd> 10, <South
Australian Oil and Gas Corp Pty Ltd> 10 pct.


.I 13630
.C
ship
.W
IRAN SAYS IT INTENDS NO THREAT TO GULF SHIPPING.
    LONDON, March 23 - Iran said reports that it intended to
threaten shipping in the Gulf were baseless, and warned the
U.S. And other countries not to interfere in the region.
    Tehran radio, monitored by the BBC, quoted a Foreign
Ministry spokesman as saying any attempt at interference would
be met by "a strong response from Iran and other Moslems in the
world."
     U.S. Defence Secretary Caspar Weinberger, in remarks
apparently unrelated to the broadcast, said the U.S. Would do
whatever was necessary to keep shipping lanes open in the face
of new Iranian anti-ship missiles in the Gulf.
    The U.S. State Department said two days ago Tehran had been
told of U.S. Concern that Iranian anti-ship missiles posed a
threat to the free flow of oil from the Gulf.
    U.S. Officials have said Iran has new Chinese-made
anti-ship "Silkworm" missiles, which pose a greater threat to
merchant ships than missiles used before.
    The Iranian spokesman said the reports that Iran intended
to attack ships were "misleading propaganda."
    He said Iraq's President Saddam Hussein was the main cause
of tension in the Gulf and said Iran would continue to use "all
its legitimate means to stem the cause of tension."
    Weinberger said in a television interview in the U.S. "We
are fully prepared to do what's necessary to keep the shipping
going and keep the freedom of navigation available in that very
vital waterway."
    "We aren't going into any disclosures or discussions of what
might happen, but we are certainly very sympathetic to and
listening carefully to any suggestions for our assistance in
keeping navigation free in that area," he said.
    Weinberger said U.S warship movements in the Gulf area were
not unusual.
    A U.S. Navy battle group led by the aircraft carrier Kitty
Hawk is currently in the northern Arabian Sea.
    The Iranian spokesman was quoted by Tehran radio as saying
the U.S. Was trying to build up its military presence in the
region.


.I 13632
.C
gnp
.W
MALAYSIAN 1987 ECONOMIC GROWTH SEEN ABOVE FORECAST.
    SINGAPORE, March 23 - The Development Bank of Singapore Ltd
(DBS) said Malaysia's real gross domestic product growth (gdp)
in 1987 could be 1.5 to two pct, above a budget target of one
pct.
    It said in a report that because of an economic recovery
and higher foreign exchange reserves, the Malaysian ringgit is
unlikely to face devaluation in the near future.
    The report was presented at a two-day investment conference
organised by the DBS, one of Singapore's four major banks.
    The report said rising commodity prices and the continued
expansion of the manufacturing sector coupled with rigorous
fiscal restraints and a more stable currency are grounds for
cautious optimism about the Malaysian economy.
    It forecast the ringgit will remain stable at between 2.60
and 2.70 Malaysian dlrs to the U.S. Dollar for the rest of the
year.
    But the report said the growth rate of Malaysia's external
debt remains worrying and should be controlled. It said
Malaysia's external debt totals 48 to 49 billion Malaysian dlrs
and its debt service ratio exceeds 20 pct.


.I 13633
.C
oilseed;coconut;
.W
PHILIPPINE COCONUT PRODUCT EXPORTS FALL IN JANUARY.
    MANILA, March 23 - Coconut product exports fell to 163,924
copra tonnes in January from 196,610 tonnes in December and
167,747 tonnes in January last year, government figures show.
    Coconut product sales earned 44.54 mln dlrs compared with
45.30 mln in December and 49.09 mln a year earlier.


.I 13634
.C
iron-steel
.W
GERMAN STEEL SUBSIDIES CANNOT CONTINUE - MINISTER.
    BONN, March 22 - Economics Minister Martin Bangemann said
the state could not continue to pour money into West Germany's
ailing steel and coal industries because the subsidies
endangered other parts of the economy.
    "The situation is completely absurd from an economic point
of view," Bangemann told the newspaper Die Welt in an interview
released ahead of publication tomorrow.
    "We are subsidising the production of mineral coal and steel
to an enormous extent and at the same time putting a huge
burden on all other branches of industry and making them
uncompetitive," he said.
    Bangemann said the steel and coal industries were no longer
capable of being competitive. Continued state subsidies would
not save them but would only prolong their lives artifically
for a few years, he said.
    "That is why I have refused to continue subsidising them in
the way that we have done in the past," he said.
    Several steel firms have announced plans to reduce their
workforces, citing weak prices and lower exports due to the
strength of the mark and tough foreign competition.
    Bangemann said everything possible would be done to find
new jobs for the workers affected by the cuts.


.I 13635
.C
inventories
.W
AUSTRALIAN MANUFACTURERS EXPECT DOWNTURN - SURVEY.
    MELBOURNE, March 23 - A majority of Australian
manufacturers expect a deterioration in the business climate,
according to the March survey of industrial trends by Westpac
Banking Corp and the Confederation of Australian Industry.
    After expecting improvements in two previous quarterly
surveys, 56 pct of respondents reported working at less than
satisfactory levels, with insufficient orders nominated by 70
pct as the major constraint.
    Other constraints were capacity, 11 pct, and labour nine
pct, the survey said.
    Inflationary pressure increased during the quarter and
investment plans for the next year were scaled down, which the
survey said could limit activity in the medium to short term.
    Respondents reporting an increase in orders fell to 22 pct
in March from 30 pct in December, while those with orders
accepted but not yet delivered fell to 14 pct from 21 pct.
    Stocks of finished goods and raw materials fell sharply in
the March quarter and further depletion was forecast for the
June quarter, the survey said.
    Respondents said finance was harder to obtain, which
Westpac chief economist Bob Graham said was probably because of
high interest rates rather than the availability of money.
    Graham said he thought expectations would gradually improve
later this year, when the dollar might consolidate and interest
rates ease slightly.
    He believed some manufacturers were not investing because
they feared the Australian dollar would get stronger.
    "We do not believe the dollar will revalue, the (economic)
fundamentals are for it to slip away if anything," he said.


.I 13636
.C
acq
.W
DART GROUP FLEXIBLE ON SUPERMARKETS <SGL> BID.
    NEW YORK, March 22 - <Dart Group Corp> said it told
Supermarkets General Corp <SGL> it was flexible on the price it
would pay to acquire the company.
    Dart has said it would offer 41.75 dlrs cash for each SGL
share if the SGL board recommended the offer to shareholders.
    SGL has termed the 1.62 billion dlr offer unsolicited.
    In a letter to SGL dated March 20, Dart also said it was
denied confidential information on SGL that would be given to
other potential bidders.
    SGL officials could not be reached for comment.
    Dart said it was advised that a selling brochure for the
sale of SGL had been distributed to about 20 potential buyers,
but not itself. These purchasers would also be given access to
SGL's books and records and the opportunity to talk with key
employees.
    "We suspect that one or more of the 20 are leveraged buyout
firms," said a source close to Dart. Analysts have said SGL
management may be considering a leveraged buyout.
    Dart said it remains interested in acquiring SGL on a
friendly basis and reiterated its willingness to negotiate all
the terms of its offer.
    Dart said SGL representatives said the company has not
received any other offer.
    It said it requested the confidential information to better
understand SGL, but was denied this because it refused to sign
an agreement prohibiting it from making a bid for SGL without
SGL's approval.
    The agreement would also have limited its ability to buy
SGL shares, Dart said. It considered those conditions
unreasonable in the interest of trying to negotiate a friendly
transaction, it said.
    Dart has just under five pct of SGL shares.
    Dart said it requested the information before its meeting
with SGL representatives, but held the meetings in the hope
representatives would reach an agreement.
    It said it indicated it was flexible on price, but was told
there were certain issues important to SGL management and while
they were not conditions to the deal, Dart was expected to take
them into account in putting together its package.
    It said the issues include an immediate payment of 5.7 mln
dlrs to SGL chairman Leonard Lieberman, executive vice
president James Dougherty and financial officer Murray Levine.
    Dart said this payment was intended for the three officers'
severance agreements, although there was an implication that
Lieberman and Dougherty would be leaving the company of their
own volition.
    Dart said under their present agreements, none of these
officers have any right to such accelerated payments. Also,
Dart said Lieberman, Dougherty and Levine are to be paid 2.6
mln dlrs to pay their taxes. It also said top management's
incentive shares were to be accelerated and paid for at a cost
of six mln dlrs although there are restrictions on the shares
unless waived by the company's compensation committee.
    Dart said it was to fund up to five mln dlrs for top
management's supplemental retirement plan.
    Dart said another issue was to agree to future severance
obligations and future salary guarantees for top management,
estimated at more than 15 mln dlrs in excess of obligations
under the company's present policy.
    Dart said despite such management payments, it agreed to
discuss all aspects of its offer and in fact did try to
negotiate a transaction at the March 18 meeting with SGL.
    Supermarkets General owns the Path Mark supermarket chain
and Rickels home centres.
    Dart also released a copy of a lawsuit that was being filed
by an SGL shareholder, seeking to stop SGL from taking such
actions as paying greenmail or enacting a poison pill defence.
    The suit also sought to have directors carry out their
fiduciary duty.
    Greenmail is the payment at a premium for shares held by an
unwanted suitor and a poison pill is typically the issue of
securities to shareholders which make a takeover more
expensive.


.I 13638
.C
crude
.W
AUSTRALIA SAID TO RELY TOO MUCH ON OIL TAXES.
    SURFERS PARADISE, Australia, March 23 - The government's
over-reliance on revenue from crude oil is adversely affecting
Australia's economic performance, Australian Petroleum
Exploration Association (APEA) chairman Dennis Benbow said.
    Over one-third of Australia's indirect tax income is
derived from oil at a time of falling domestic output and weak
crude prices, he told the APEA annual conference here.
    This dependence on oil-generated revenue distorts the
country's economic performance directly by acting as a
disincentive to new exploration and indirectly by affecting
trading competitiveness through high energy costs, he said.
    Australia's medium-term liquid fuel self-sufficiency
position is posing a major economic threat, yet the
government's response has been to load new tax burdens on the
oil industry, Benbow said.
    Domestic oil output from existing fields is expected to
fall to 280,000 barrels per day (bpd) in fiscal 1992/93 from
546,000 bpd in 1985/86, reflecting mainly the decline of the
Bass Strait fields, he said.
    Bass Strait reserves are now two-thirds depleted, with the
three largest fields 80 pct depleted, he said.
    By 1992/93, Bass Strait output is expected to be just over
half the 1985/86 level, assuming a number of so far undeveloped
fields are brought on stream and enhanced recovery from
existing fields goes ahead, Benbow said.
    Government projections of output from as yet undiscovered
fields range from 40,000 to 130,000 bpd, he said.
    Australian liquid fuel demand is forecast to rise to
680,000 bpd in 1992/93 from 565,000 in 1985/86, implying a
crude oil gap of between 270,000 and 360,000 bpd in five years
time, he said.
    At present world oil prices and the current value of the
Australian dollar, annual oil imports in 1992/93 would cost
between 3.2 billion and 3.6 billion dlrs, Benbow said.
    Despite intensive exploration in the early 1980's, the
addition to reserves has been inadequate, he said.
    For example, the 409 mln barrels discovered in the five
years 1980-84 represent about two years' consumption, he said.
    He called on the government to review its tax policies to
restore incentive to exploration.


.I 13640
.C
cpi
.W
MINISTER PREDICTS ONE PCT INFLATION FOR SINGAPORE.
    SINGAPORE, March 23 - Singapore will have an inflation rate
of one pct in 1987, up from a negative 1.4 pct in 1986, Trade
and Industry Minister Lee Hsien Loong told Parliament.
    He said the 1986 drop in the inflation rate, the first fall
in a decade, was due largely to lower world prices for oil and
oil-related items.
    But Lee said the negative inflation rate is unlikely to be
repeated this year because of projected higher prices for
primary commodities and oil.


.I 13641
.C
earn
.W
******WOOLWORTHS LTD REPORTS 9.27 MLN DLR NET PROFIT YR END FEB 1 VS 63.20 MLN.
Blah blah blah.

.I 13644
.C
acq
.W
******Bell Resources says it buys 57.6 mln BHP shares, taking holding to 29.93 pct.
Blah blah blah.

.I 13646
.C
earn
.W
WOOLWORTHS LTD <WLWA.S> YR ENDED FEB 1.
    SYDNEY, March 23 -
    Shr 4.16 cents vs 28.80
    Final Div nil vs 10.5 cents making six for year vs 16.5
    Pre-tax profit 2.68 mln dlrs vs 107.71 mln
    Net 9.27 mln vs 63.20 mln
    Turnover 5.47 billion vs 4.83 billion
    Other income 65.33 mln vs 51.68 mln
    Shrs 222.94 mln vs 219.54 mln.
    NOTE - Net is after tax credit 6.6 mln vs tax paid 43.39
mln, depreciation 41.18 mln vs 34.10 mln, interest 42.42 mln vs
36.23 mln and minorities 11,000 vs 1.12 mln but before
extraordinary net profit 24.98 mln vs loss 51.71 mln


.I 13647
.C
acq
.W
BELL RESOURCES BOOSTS STAKE IN BHP.
    PERTH, March 23 - <Bell Resources Ltd> said it has executed
an underwriting agreement with <Equiticorp Tasman Ltd> to
acquire 57.6 mln ordinary shares in The Broken Hill Pty Co Ltd
<BRKN.S> for 540 mln dlrs.
    Bell said in a statement that it now holds 29.93 pct of
BHP's 1.2 billion shares.


.I 13651
.C
acq
.W
ARIADNE UNIT CONFIRMS BID FOR SAN MIGUEL.
    HONG KONG, March 23 - Ariadne group unit <Barwon Farmlands
Ltd> confirmed it offered 3.8 billion pesos in cash for the 38
mln shares of Philippine brewing company <San Miguel Corp>.
    The Australia-based Barwon, 30 pct owned by New Zealander
Bruce Judge's Ariadne group, said in a statement released in
Hong Kong that a formal offer had been made to the Philippines
government, which holds the shares.
    It said it was confident the offer will be reviewed
favourably.
    Newspapers in Manila and Hong Kong reported at the weekend
that an offer had been made.
    Barwon said it was represented by Australian stockbroker
<Jacksons Ltd>, which forwarded a formal offer to Philippine
President Corazon Aquino of 100 pesos for each of the 38.1 mln
A and B shares of San Miguel.
    The Philippine government seized the shares, which
represent a 31 pct stake in the brewery firm, from the <United
Coconut Planters Bank>, alleged by the government to be linked
with the country's deposed President Ferdinand Marcos.
    The Barwon statement said a deal is expected to be
concluded between Barwon and the Philippines government in 14
days.
    Barwon also said it made recommendations to the government
on how it could purchase the class A shares, which can only be
held by a Philippine national or a firm which is at least 60
pct held by a member of the country. It did not elaborate.
    The Hong Kong Economical Journal quoted a spokesman of
Jacksons as saying Barwon plans to set up a branch in the
Philippines to meet the criteria.
    <San Miguel Brewery Ltd>, a locally listed firm 69.65 pct
held by San Miguel's <Neptunia Corp> affiliate, was last traded
at 16.30 H.K. Dlrs against 15.50 dlrs on Friday.


.I 13652
.C
crude
.W
EXXON OFFICIAL URGES PLANNING FOR NEXT OIL SURGE.
    SURFERS PARADISE, Australia, March 23 - World governments
should prepare for an inevitable significant increase in the
price of oil as non-Middle East supplies diminish, Exxon Corp
<XON> director and senior vice-president Donald McIvor said.
    Policymakers must also face up to the reality that the bulk
of world oil reserves lies in the Middle East, he said in a
speech prepared for delivery to the Australian Petroleum
Exploration Association (APEA) annual conference.
    It appears ever more likely that new discoveries elsewhere
will not change this fact, he said.
    McIvor said 37 of the world's 30,000 oil fields contain
about 35 pct of all oil ever discovered.
    Only 11 of these 37 super-giant fields lie outside the
Middle East and only five of the 37 have been discovered in the
last 20 years, three of them in the Middle East, he said.
    He also said that since 1970, the world has been consuming
20 to 25 billion barrels a year while making discoveries at the
rate of only 10 to 15 billion barrels a year.
    More than half of remaining proved reserves are in the
Middle East, he said.
    McIvor said it was important to continue to search for oil
outside the Middle East because each addition contributes to a
diversity of supply desirable for global political and economic
stability.
    "It is important to enhance the likelihood of home-country
discoveries with measures such as non-discriminatory and stable
taxation, and minimum regulation, together with opening up of
acreage for exploration," he said.
    Increasing reliance on the Middle East will also boost the
incentive to use natural gas and synthetic sources of
petroleum, he added.


.I 13653
.C
oilseed;grain;trade;
.W
TAIWAN TO BOOST FARM IMPORTS FROM U.S., EUROPE.
    TAIPEI, March 23 - Taiwan is expected to boost agricultural
imports from the U.S. And Europe in calendar 1987 to help
balance trade, the Council of Agriculture said.
    A council official, who declined to be named, told Reuters
the imports, which will include about seven mln tonnes of
oilseeds, grains and dairy products, would be worth some four
billion U.S. Dlrs against 3.72 billion in 1986 and 3.38 billion
in 1985.
    Taiwan's surplus with the U.S. Rose to 13.6 billion dlrs
last year from 10.2 billion in 1985, government figures show.
    Government figures also show Taiwan's surplus with Europe
rose to 1.53 billion dlrs last year from 543 mln in 1985.
    Taiwan's imports of U.S. Farm produce last year amounted to
1.41 billion dlrs against 1.52 billion in 1985.
    Imports from Europe rose to 182 mln U.S. Dlrs from 148 mln,
the official said.
    He attributed the decline in the value of U.S. Imports to
falling agricultural products prices last year.


.I 13655
.C
crude
.W
AUSTRALIAN OIL TAX CUT SEEN BOOSTING OUTPUT.
    SURFERS PARADISE, Australia, March 23 - A 10 percentage
point reduction in the Australian government's maximum crude
oil levy on old oil would stabilize Bass Straits oil output,
resources analyst Ian Story said here.
    A reduction to 70 pct from 80 pct would enable Bass Strait
output to be maintained at the current rate of 420,000 barrels
per day (BPD) for the next year rather than falling to 380,000
BPD in 1987/88, he told the Australian Petroleum Exploration
Association annual conference.
    Story is an analyst with and a director of Sydney
stockbroker Meares and Philips Ltd.
    Windfall profits taxes on Bass Strait crude are no longer
appropriate in the current economic climate, Story said.
    The maximum 80 pct levy on old oil -- that discovered
before September 1975 -- is now forcing the Broken Hill Pty Co
Ltd <BRKN.S>/Exxon Corp <XON> partnership to shut-in
production, accelerating the decline in output and reducing
government revenue, he said.
    He said the producer return per barrel at a price of 30
Australian dlrs a barrel would rise to 2.07 dlrs from 0.80 dlrs
if the levy was cut to 70 pct.
    "The economics at an 80 pct levy are simply not attractive
at oil prices below 30 dlrs," Story said.
    Cutting the maximum levy rate to 70 pct would create higher
levels of self-sufficiency, increase government revenue, boost
exports and provide incentives for exploration and development,
he said.
    The government is currently reviewing the oil tax
structure.


.I 13656
.C
interest;gnp;trade;
.W
GATT MEETING HEARS PLEA FOR AFRICAN DEBT RELIEF.
    TAUPO, New Zealand, March 23 - Debt among African countries
will continue to grow and their economies remain stifled unless
developed countries lower their interest rates, Nigerian Trade
Minister Samaila Mamman said.
    He told an informal General Agreement on Tariffs and Trade
(GATT) meeting the widening gap between developed and
developing countries and an inequitable international economic
system were major impediments to growth in developing
countries.
    Delegates from 23 countries are attending the GATT talks in
the New Zealand resort of Taupo.
    "I wish to emphasise that the growth in the volume of the
external indebtedness of African countries reflects the full
effect of the deflationary monetary and trade policies of the
developed market economy countries," Mamman said.
    "The developed market economy countries have slowed down
output growth thereby drying up markets for the commodity
exports of African countries."
    Mamman said the World Bank estimated 35.3 billion dlrs a
year would be needed over the next five years for the African
continent to be able to achieve a gross domestic product growth
(GDP) rate of three to four pct by 1990.
    Yet at the same time Africa's debt service was estimated at
24.5 billion dlrs a year between 1986 and 1990.
    "With the best of intentions Africa cannot attain a three to
four pct GDP growth rate if the current high level of debt
persists," Mamman said. Developed countries must seek
alternatives to policies that resulted in the transfer of
resources and more indebtedness, he said.
    "The international community cannot fail to respond
positively to the collapse of the international market for
commodities ... And act quickly to stabilize demand and prices
of our commodity exports," he added.


.I 13658
.C
interest
.W
GERMAN BOND YIELDS SEEN FALLING IN NEAR TERM .
    By Alice Ratcliffe, Reuters
    FRANKFURT, March 23 - West German bond yields could decline
over the next few months if recent efforts to stabilize
exchange rates, as seen in last month's Paris pact, extend to
keeping down European interest rates, banking economists said.
    But in the longer term domestic yields could rise under
agreements to stimulate West Germany's economy, they said.
    The Paris agreement has so far successfully stabilized
currencies with the threat of central bank intervention,
economists said.
    Economists speculated that G-7 countries may try to bolster
the pact by uncoupling U.S. and West German interest rates
further when they meet for the IMF Interim Committee in April.
"The recent round of monetary accommodation by the Bundesbank
and the Bank of Japan and the firming of the Federal Funds rate
are significant. They mark an uncoupling of movements in U.S.
and foreign interest rates," Salomon Bros Inc said in a recent
study.
    It said narrowing of international interest rate spreads
was a major factor in the dollar's fall. These spreads will
have to be widened if the dollar is to be stabilized.
    West German Bundesbank President Karl Otto Poehl encouraged
the U.S. not to cut interest rates in January when the
Bundesbank cut its own rates by half a point, to avoid
weakening the dollar.
    West German economists see room for further cuts in leading
West German rates if the dollar resumes its decline.
    "It's not a taboo," Peter Pietsch, spokesman for Commerzbank
AG said.
    But most economists see room for a cut in West German rates
only in the first half of the year, as re-emerging inflation
will limit room for manoeuvre later in the year.
    The Bundesbank's average yield of public paper is already
nearing last year's low. Last week, yields fell to around 5.50
pct, not far from the 1986 low of 5.35 pct posted in mid-April.
 Economists said the trend may cause domestic investors to
shift some funds from short to longer-term paper. Such a move
would tend to flatten the yield curve between short and
long-term rates, which has become more pronounced since the
Bundesbank lowered its discount rate.
    It might also facilitate a further cut in leading rates, as
the shift out of savings accounts into securities would slow
growth of the Bundesbank's central bank money stock aggregate.
    But conflicting with this trend are plans to increase West
German tax cuts, part of the Paris currency pact designed to
meet U.S. demands for faster West German growth. This move may
force interest rates up by creating a revenue vacuum which must
be filled by higher government borrowing.
    This may not occur if private sector demand for credit
remains weak, but demand could emerge if rates begin rising.
    Economists said it appeared the government had already
stepped up borrowing this year to accomodate revenue loss from
other sources, including tax losses resulting from weaker than
expected economic growth, and higher than expected spending.
    Josef Koerner, chief economist of the West German
Ifo-Institut, said in a newspaper interview he expected 1987
tax revenue to be some 11 billion marks below estimates by the
West German government in November.
    Any tax shortfall in itself is unlikely to push yields up.
But coupled with other factors such as waning foreign
speculative buying of mark bonds on the dollar's decline, long
term yields may to have to rise, economists said.
    Public authority borrowing in 1988 may also rise owing to
increases in the second phase of Bonn's tax reform package.
    The West German government is raising its total tax cuts in
1988 by 5.2 billion marks to 14.4 billion.
    West German chancellor Helmut Kohl said last week increased
borrowing to finance the tax reform is acceptable.
    Finance minister Gerhard Stoltenberg said last Thursday he
was looking for other ways to finance the reform, such as
raising indirect taxes.
    But few economists believe the government will be able to
go through with its tax measures without increasing net
borrowing.
    The Bundesbank said in its February report that it was
wrong to believe that the first stage of the tax reform in 1986
could be managed without increasing deficits.
    The Bundesbank said West German public authorities borrowed
a large 21.9 billion marks in credit markets in the 1986 final
quarter compared with 14.8 billion in fourth quarter 1985.
    The federal government took up nearly 10 billion marks of
the fourth quarter 1986 figures, and also drew on two billion
marks of Bundesbank advances at the end of the year, when it
had not required such a credit in the 1985 quarter.


.I 13659
.C
trade
.W
PHILIPPINES POSTS 68 MLN DLR JANUARY TRADE DEFICIT.
    MANILA, March 23 - The Philippines posted a trade deficit
of 68 mln dlrs in January, compared with deficits of 57 mln in
January 1986 and 28 mln in December, government figures show.
    The National Census and Statistics Office (NCSO) said
imports of 436 mln dlrs in January were up from 371 mln in
January 1986 and 393 mln dlrs in December, while exports of 368
mln were up on the 314 mln in January 1986 but lower than
December's 421 mln.
    The country's 1987-92 medium-term development plan targets
a 9.8 pct average annual growth in exports and a 10.7 pct
growth in imports, the NCSO said.


.I 13661
.C
oilseed;grain;meal-feed;corn;soybean;sorghum;
.W
JAPANESE COMPOUND FEED OUTPUT FALLS IN JANUARY.
    TOKYO, March 23 - Japanese compound feed output fell to
2.06 mln tonnes in January from 2.57 mln in December, against
2.04 mln a year earlier, Agriculture Ministry statistics show.
    January sales totalled 2.07 mln tonnes against 2.59 mln in
December and 2.04 mln a year earlier, while end-month stocks
were 233,003 tonnes against 230,764 and 241,567.
    Base mixes for the January compound feed output included
corn, sorghum and soybean meal.
    Corn use totalled 993,156 tonnes, against 1.20 mln in
December and 896,718 a year earlier, and its compounding ratio
was 48.1 pct against 46.6 pct and 43.1 pct.
    Sorghum use totalled 339,013 tonnes in January against
459,067 in December and 412,743 a year earlier, and its
compounding ratio was 16.4 pct against 17.8 pct and 19.8 pct,
the ministry's figures shows.
    Soybean meal use amounted to 202,546 tonnes against 253,498
and 213,287 and its compounding ratio was 9.8 pct against 9.8
pct and 10.2 pct.


.I 13662
.C
trade
.W
JAPAN SAYS IT TRYING TO EXPAND DOMESTIC DEMAND.
    TAUPO, New Zealand, March 23 - Japan has assured a meeting
of trade ministers it is making every effort to expand domestic
demand and restructure its economy.
    Japanese trade representative Tsomu Hata told an informal
General Agreement on Tariffs and Trade (GATT) meeting that, in
addition to demand boosting measures adopted last September, a
comprehensive economic program will be prepared after the
1987/88 budget is approved.
    Hata, speaking at the first session of the two-day meeting,
said agriculture is no exception to the goal of restructuring
the economy, but did not elaborate.
    Hata said protectionist pressures in the international
economy are as strong as ever, reflecting financial deficits,
payment imbalances and serious unemployment in many countries.
    Despite great potential, developing economies are still
confronted by grave difficulties, particularly debt, he added.
    The basis for the talks is the GATT ministerial declaration
last September in Punta del Este, Uruguay, and the subsequent
trade negotiating plan agreed in Geneva.
    "It is essential that we first reaffirm here our commitment
to implementing that plan as scheduled," Hata said.
    Hata added it is not constructive to speed up negotiations
in some areas at the expense of others.
    In order to rebuild the free trade system, it is important
for each participant to have domestic policies that will serve
this end.
    As part of its contribution, Japan plans in April to
fundamentally improve its generalised system of preferences for
industrial and mining products to make Japan's domestic market
more open to developing countries, he said.


.I 13665
.C
interest
.W
****** Bundesbank sets 28-day securities repurchase tender at fixed 3.80 pct.
Blah blah blah.

.I 13666
.C
money-fx;interest;
.W
BUNDESBANK SETS NEW REPURCHASE TENDER.
    FRANKFURT, March 23 - The Bundesbank set a new tender for a
28-day securities repurchase agreement, offering banks
liquidity aid at a fixed rate of 3.80 pct, a central bank
spokesman said.
    Banks must make their bids by 1000 GMT tomorrow, and funds
allocated will be credited to accounts on Wednesday. Banks must
repurchase securities pledged on April 22.


.I 13668
.C
money-fx;interest;
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG.
    LONDON, March 23 - The Bank of England said it forecast a
shortage of around 800 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
around 1.18 billion stg while bankers balances below target
will take out some 20 mln stg.
    Partly offseting these outflows, a fall in note circulation
and exchequer transactions will add some 355 and 55 mln stg to
the system respectively.


.I 13670
.C
rubber;palm-oil;coffee;trade;
.W
INDONESIA'S NON-OIL EXPORTS DECLINE IN 1986.
    JAKARTA, March 23 - Indonesia's non-oil and gas exports
fell to 5.79 billion dlrs in calendar 1986 from 5.98 billion in
1985, according to Bank Indonesia figures.
    Coffee exports rose to 753 mln dlrs from 580 mln in 1985,
but rubber shipments fell to 625 mln from 720 mln and tin to
180.6 mln from 246 mln, weekly central bank figures show.
    Indonesia hopes to boost its non-oil exports to make up for
oil revenue lost because of lower prices. But the lower value
of commodities such as timber, rubber, palm oil and tea on
world markets has prevented this, despite a 31 pct devaluation
of the rupiah against the dollar in September.


.I 13672
.C
trade
.W
AUSTRALIAN MINISTER SAYS AGRICULTURE GATT PRIORITY.
    TAUPO, New Zealand, March 23 - Australian Trade Minister
John Dawkins said if the General Agreement on Tariffs and Trade
(GATT) does not give high priority to agricultural trade reform
it will be neglecting the area of greatest crisis.
    In a statement to the informal GATT trade ministers
conference here he said agriculture is a problem which involves
all countries and seriously affects the debt servicing
abilities of a number of developing countries.
     He said major countries should be showing leadership on
this problem.
    "We will be giving close attention to the processes in the
OECD (Organisation of Economic Cooperation and Development) and
elsewhere leading to the Venice economic summit where we will
be looking to the participants to adopt a strong commitment to
agricultural trade reform," Dawkins said.
    The Venice summit is scheduled for June.
    He said Australia's interests in the Uruguay Round, the
eighth under the GATT, are wide ranging. Dawkins said he sees
the round as providing a timely opportunity to secure further
meaningful trade liberalisation in all sectors and to restore
confidence in the multilateral system.
    Dawkins said initial meetings of the negotiating groups
established in Geneva after the GATT declaration last September
in Punta del Este, Uruguay, have made a reasonable start, but
it is vital that trade ministers maintain the pressure on these
processes.
    "We must see that the commitments made at Punta del Este on
standstill and rollback are carried into practice."
    The standstill and rollback of protection offers the global
trading system a chance to hold and wind back protection during
the negotiations which are expected to last up to four years,
he said.


.I 13674
.C
money-fx;interest;gnp;trade;
.W
JAPAN ECONOMY SEEN GROWING 3.6 PCT IN 1987/88.
    TOKYO, March 23 - Japan is expected to post a 3.6 pct rise
in real gross national product in 1987/88, higher than the
official 3.5 pct target, a private economic institute said.
    The Research Institute on National Economy said in a report
the economy will start picking up in the April-June quarter,
partly because of an improvement in earnings performance and
capital spending in manufacturing industries.
    The institute assumed an average exchange rate in the year
starting April 1 of 150 yen to the dollar. It predicted the
Bank of Japan will not change the official discount rate in the
year.
    The institute forecast that Japan's exports will gradually
rise in the year in volume terms as the dollar's fall in the
past 18 months is likely to help prop up the U.S. Economy.
    Japan's trade surplus is expected to narrow slightly to
90.2 billion dlrs in 1987/88 ending March 31 from an estimated
98 billion in the current fiscal year, it said.


.I 13676
.C
earn
.W
BOOKER PLC <BOKL.L> 1986 YEAR.
    LONDON, March 23 -
    Shr 27.89p vs 24.24p
    Div 9.0p vs 7.75p making 13.75p vs 12.0p
    Turnover 1.26 billion stg vs 1.19 billion
    Pretax profit 54.6 mln vs 46.5 mln
    Tax 16.5 mln vs 13.5 mln
    Interest paid 2.2 mln vs 2.4 mln
    Minority interests 2.3 mln debit vs same
    Extraordinary items 42.3 mln profit vs 5.4 mln loss
    Pretax profit includes -
    Agribusiness 28.3 mln vs 22.5 mln
    Health products 6.5 mln vs 5.4 mln
    Wholesale food distribution 8.3 mln vs 7.3 mln
    Retail food distribution 4.2 mln vs 5.9 mln
    U.K. 28.7 mln vs 27.2 mln
    U.S. 21.1 mln vs 16.1 mln


.I 13677
.C
veg-oil;trade;
.W
PHILIPPINES CRITICISES EC FOR VEGETABLE OIL LEVY.
    TAUPO, New Zealand, March 23 - Philippines Trade and
Industry Secretary Jose Concepcion told world trade ministers
he wondered if their agreement was of any real value after the
European Community (EC) imposed a levy on vegetable oils.
    Concepcion, speaking at an informal meeting of the General
Agreement on Tariffs and Trade (GATT) here, said ministers
declared in Uruguay last September that the trade of
less-developed nations should not be disrupted.
    He said the EC not only ignored Manila's request for lower
tariffs on coconut oil but introduced a levy on vegetable oils
and fats that are vital exports for Southeast Asian countries.
    Concepcion said while the levy might be rejected by the EC
Council of Ministers, he noted that "I cannot help but wonder
whether the agreements we produce in meetings like this are of
any real value."
    He also said industrialised nations saved about 65 billion
U.S. Dlrs in 1985 through low commodity prices, but this had
affected the ability of developing nations to import goods and
services.
    "The health and the growth of world trade requires that the
new development of developing countries losing their share of
world trade be arrested and reversed," he said.


.I 13679
.C
trade;reserves;
.W
BURMA SAYS DEBT SERVICE RATIO FALLS TO 48.8 PCT.
    RANGOON, March 23 - Burma's debt service ratio will have
fallen to 48.8 pct in the fiscal year to end-March 1987 from 50
pct in 1985-1986, the official Council of People's Inspectors
(CPI) reported.
    Western diplomats in Rangoon estimate the figure at above
70 pct and say the country can no longer depend on foreign
exchange reserves to cover more than a few weeks' imports.
    The CPI, which oversees government spending, said in its
latest report to parliament that foreign currency reserves fell
to a record low of 407.9 mln kyats in September 1986 from 430.3
mln in March 1986. Earlier figures were not available.
    Debt servicing cost Burma 1.62 billion kyats in 1985-1986
while foreign exchange earnings -- export revenues plus loans
and aid -- totalled 3.23 billion kyats in the same period, the
council said.
    Later figures were not available.
    Burma, which diplomats here say now has foreign debts of up
to 3.4 billion dlrs, has applied to the United Nations to be
reclassified as one of the world's least developed countries in
order to qualify for softer loan and grant aid.


.I 13680
.C
palm-oil;veg-oil;ship;rape-oil;
.W
INDIA BOUGHT 24,000 TONNES OF RBD OLEIN AT TENDER.
    LONDON, March 23 - The Indian State Trading Corporation
(STC) bought four cargoes of rbd palm olein totalling 24,000
tonnes at its vegetable oil import tender last week, traders
said. Market reports on Friday said the STC had booked two
cargoes.
    The business comprised three 6,000 tonne cargoes for June
at 346 dlrs and 6,000 tonnes for July at 340 dlrs per tonne
cif.
    It also secured a 20,000 tonne cargo of optional origin
rapeseed oil for May 15/Jun 15 shipment at 321 dlrs cif.


.I 13681
.C
crude
.W
BP GRANGEMOUTH REFINERY SHUT, HYDROCRACKER DAMAGED.
    LONDON, MARCH 23 - The entire British Petroleum Co PLC
refinery at Grangemouth in Scotland has been shut down
following the explosion and fire that severely damaged the
hydrocracker at the site, a refinery spokesman said.
    He said the rest of the 178,500 bpd refinery, including the
19,000 bpd catalytic cracker, was undamaged. The whole refinery
was closed pending enquiries but a decision when to reopen the
main units will be taken in the next couple of days, he said.
    But there was extensive damage to the central part of the
32,000 bpd hydrocracker, which upgrades heavy oil products to
gasoline, and it will be out of operation for some months.
    The spokesman said BP will not suffer supply shortages as a
result of the explosion as it will be able to bring in product
from other sources. BP has a 437,000 bpd refinery in Rotterdam,
a 181,900 bpd unit at Ingolstadt, West Germany, a 181,900 bpd
plant at Lavera in France and a smaller Swedish plant.
    He said the explosion and fire, in which one worker was
killed, occurred when the hydrocracker was not in operation.
    The refinery as a whole had been operating at about half of
its capacity since the end of January while an extensive
overhaul was carried out on the North Side of the complex where
the hydrocracker is sited, he said.
    This work was scheduled to be completed by mid-April, but
this is now being assessed following the hydrocracker accident.
    Two people were killed in an explosion and fire in a flare
line at the Grangemouth refinery on March 13, but the spokesman
said this incident was some 100 yards from the latest accident.


.I 13682
.C
grain;corn;rice;
.W
DENG SETS LIMIT TO CHINA GRAIN IMPORTS, PAPER SAYS.
    PEKING, March 23 - China's top leader Deng Xiaoping said
China must not import more than 10 mln tonnes of grain, Ming
Pao newspaper of Hong Kong said.
    Customs figures show that China imported 7.73 mln tonnes of
grain in 1986, up from 5.97 mln in 1985 but down from a record
16.15 mln in 1982.
    The newspaper quoted Deng as saying that grain output is
one of several key issues that will influence the whole
development of the economy. It did not give the context of his
remarks. The 1987 grain production target is 405 mln, up from
391 mln in 1986.
    The newspaper quoted Deng as saying that the situation has
reached the point where "pigs are not fed, there is not enough
grain and increases in output have slowed."
    "We should in our overall economic planning put agriculture
in its proper place to reach our target of 480 mln tonnes by
the year 2000," he said. "We must avoid the situation in recent
years of importing more than 10 mln tonnes of grain."
    The paper quoted Deng as saying that the State Council has
decided to raise the price of five grains, including corn and
rice, unchanged since 1978, but it gave no details.


.I 13683
.C
earn
.W
AUSTRALIA'S WOOLWORTHS LOOKS TO IMPROVED PROFITS.
    SYDNEY, March 23 - Woolworths Ltd <WLWA.S> said policy,
management and financial changes initiated during the 1986/87
business year should cause profits to reach more acceptable
levels in 1987/88 end-February 1.
    Net profit reported earlier fell 85.3 pct in the year ended
February 1.
    Results for the first month of the new year were
encouraging after a period of uncertain consumer confidence and
difficult trading conditions, it said in a statement.
    The Big W discount store division and New South Wales
supermarkets produced very disappointing results, it added.
    Woolworths earlier reported a fall in net profit to 9.27
mln from 63.20 mln on sales of 5.47 billion against 4.83
billion. Capital spending for the year was 119 mln dlrs against
105 mln for the previous year with 50 new stores opened, but
total sales were below target, Woolworths said.
    The company provided 20 mln dlrs against operating profit
for the year to cover mark-downs on stock.
    Extraordinary items included a 53 mln dlr profit on the
sale of properties and investments less a 28 mln provision for
reorganising the Big W chain.
    Woolworths is unrelated to the U.S. Group F.W. Woolworth
<Z.N>. It has been the subject of takeover speculation since
<Industrial Equity Ltd> acquired a 20 pct stake last year.
    New Zealand's diversified investment group <Rainbow Corp
Ltd> bought Safeway Stores Inc's <SA> 20 pct holding in
Woolworths for 190 mln dlrs late last year.
    Safeway put its stake up for tender just in time to take
advantage of changes in U.S. Tax laws effective from the end of
December, informed sources said.
    Woolworths shares closed on Australian stock exchanges
today at 3.50 dlrs, down five cents from Friday.


.I 13684
.C
earn
.W
BOOKER SAYS 1987 STARTS WELL.
    LONDON, March 23 - Booker Plc <BOKL.L> said 1987 had
started well and the group had the resources to invest in its
growth business both organically and by acquisition.
    It was commenting on figures for 1986 which showed pretax
profits rising to 54.6 mln from 46.5 mln previously. Profits
from the U.S. Accounted for 39 pct of the total. The results
were broadly in line with analysts' forecasts and the company's
shares firmed in morning trading to 421p from 413p at Friday's
close.
    The group ended the year with a cash surplus higher at 54
mln stg, compared to 26 mln previously, after capital
expenditure which rose to 54 mln from 43 mln.
    In a statement, the company said the U.K. Agribusiness
group reported excellent profits growth while health products
profits rose to 6.5 mln from 5.4 mln.


.I 13685
.C
gnp;grain;cpi;reserves;
.W
BANGLADESH FORECASTS GDP GROWTH OF 4.4 PCT.
    DHAKA, March 23 - Gross domestic product is expected to
grow by 4.4 pct in the year ending June 30, Finance Minister
Mohammad Syeduzzaman told reporters.
    Inflation fell to an estimated 12 pct this fiscal year from
17 pct in 1981/82, he said last night.
    The World Bank and other independent sources have said
inflation would be around 15 pct in 1986/87.
    Syeduzzaman said remittances from expatriates would rise to
600 mln dlrs this year from 425 mln in 1981/82.
    Foreign exchange reserves at end-June are projected at 680
mln dlrs compared with 105 mln in 1981/82, he said.
    Syeduzzaman said the export target has been set at 900 mln
dlrs this year against 626 mln in 1981/82. Commitments for
foreign loans and grants total more than five billion dlrs in
1986/87, against 3.54 billion five years previously, he said.
    The government's liberal industrial policy has attracted
investment commitments totalling 250 mln dlrs, he said
    Foodgrain output is estimated at 16.4 mln tonnes this year,
up from 16.12 mln in 1985/86 and 14.4 mln in 1981/82.
    Government officials have said Bangladesh must import
nearly two mln tonnes of grain annually up to 1990, when the
government expects to attain self-sufficiency in food.


.I 13687
.C
acq;grain;corn;
.W
BEGHIN-SAY INCREASES CAPITAL TO FINANCE EXPANSION.
    PARIS, March 23 - French sugar group Beghin-Say, which is
49.6 pct owned by Italy's Gruppo Ferruzzi, is to raise its
capital to 703 mln francs from 527 mln through a three-for-one
issue of shares and investment certificates to finance
expansion, president Jean-Marc Vernes told analysts.
    For the first stage Beghin-Say will issue some 2.05 mln new
65 franc shares at 500 francs to increase capital to 660 mln
francs. The share currently trades at 734 francs. Then 658,000
new 65 franc investment certificates will be issued at 400
francs, raising capital to 703 mln francs.
    The capital increase will bring the group around 1.2
billion francs in new funds to finance its expansion plans.
These include the possible acquisition of the Corn Products
maize starch plant at Haubourdin in northern France, Vernes
said.
    Ferruzzi is one of several groups bidding to buy all of
Corn Products' installations in Europe. Apart from the French
plant, these include three factories in each of Italy and West
Germany, two in Britain and Spain and one in the Netherlands
and Denmark.
    Corn Products has put a 650 mln dlr price tag on the
installations, and Beghin-Say estimates that acquisition of the
Haubourdin plant would cost between 80 and 100 mln dlrs, Vernes
said.
    If this bid fails, Beghin-Say would consider acquiring and
developing two other French plants, either in the maize or
wheat starch sector.
    Beghin-Say is also planning to finance European expansion
for its Kaysersberg subsidiary, another major reason for its
capital increase.
    Kaysersberg, which was transformed from a division of
Beghin-Say into a fully-fledged chemical subsidiary last year,
has been holding talks with other European companies on
possible accords, Vernes said. He added the company could be
introduced onto the Paris Bourse in the near future.


.I 13688
.C
crude
.W
IRAQ REPORTS RAIDS IRAN'S NOWRUZ OIL FIELD.
    BAGHDAD, March 23 - Iraq said its warplanes launched two
bombing raids on Iran's offshore Nowruz oilfield in the
northern Gulf today.
    A military spokesman, quoted by the official Iraqi news
agency, said platforms at the field were reduced "to rubble."
    He said attacks on the field, 55 miles northwest of Iran's
Kharg Island oil terminal, were carried out at 0600 GMT. He
said today's raids "fall within Iraq's policy to deprive Iranian
rulers of oil revenue used to serve their aggressive aims."
    Iraqi planes yesterday raided the nearby Ardeshir oil
field, resuming attacks on Iranian targets after a month-long
lull.


.I 13689
.C
money-fx;interest;
.W
BANK OF FRANCE SAYS NO MONEY MARKET TENDER TODAY.
    PARIS, March 23 - The Bank of France will not hold a money
market intervention tender today, ruling out a further cut in
its 7-3/4 pct intervention rate, central bank sources said.
    At the tenders, depending on market conditions, the Bank
injects liquidity into the market by buying up first category
paper. But market sources said that while the recent franc
performance leaves room for a further quarter point cut in the
intervention rate there was plenty of market liquidity.
    The Bank cut its rate to 7-3/4 pct from eight pct on March
9, the first change since January 2. Interest rates also fell
the same week in Britain, Belgium and Italy.


.I 13690
.C
earn
.W
<ZAMBIA COPPER INVESTMENTS LTD> JOHANNESBURG, March 23.
-Halfyear ended december 31
    Shr net 53 U.S. Cents vs loss 3.67
    Pre-tax 677,000 dlrs vs 857,000
    Net earnings 646,000 vs loss 4.50 mln
    Foreign tax gain 31,000 vs 30,000
    Extraordinary items nil vs loss 5.33 mln period


.I 13693
.C
gnp
.W
BALLADUR SEES ONLY TWO PCT FRENCH GROWTH IN 1987.
    PARIS, March 23 - French 1987 growth will probably be about
two pct, the same as last year, due to an international
environment that is less favourable than expected, Finance
Minister Edouard Balladur was quoted as saying.
    Treasury director Daniel Lebegue said last month that gross
domestic product is expected to grow by between two and 2.5 pct
this year, against an original target of 2.8 pct.
    Although in line with the latest Organisation for Economic
Cooperation and Development (OECD) estimate of 2.1 pct growth,
the forecast will be balanced by growth in investments and
exports, Balladur said in an interview with the daily Les
Echos.
    Last month Balladur said French GDP had grown by just two
pct last year, compared with an initial 1986 target of 2.5 pct
and 1.1 pct growth in 1985.
    He told Les Echos he aims to reduce the 1988 budget deficit
to 115 billion francs from this year's figure of 129 billion
and compared with a 141 billion deficit in 1985.
    He has already announced his intention of cutting the
deficit to 100 billion francs in 1989.


.I 13694
.C
gnp;trade;jobs;retail;
.W
FRENCH GDP SHOULD RISE 2.3 PCT IN 1988 - MINISTRY.
    PARIS, March 23 - French gross domestic product should grow
by 2.3 pct in 1988 after two pct growth this year and 2.1 pct
in 1986, the Finance Ministry said.
    The latest forecast, prepared by the National Accounts and
Budget Commission, assumed an exchange rate of 6.20 francs to
the dollar this year and next and an average oil import price
rising to 18.9 dlrs a barrel next year from 17.4 dlrs this year
and 14.7 in 1986.
    The Commission, headed by Finance minister Edouard
Balladur, forecast a fall in consumer price inflation to two
pct year-on-year at end-1988 from 2.4 pct at end 1987 and 2.1
pct last year.
    In annual average terms inflation would fall to two pct in
1988 from 2.5 pct this year and 2.7 pct last year, it said.
    Trade should show a one billion franc annual surplus this
year and next after last year's 0.5 billion surplus, it added.
    Employment should rise by 0.1 pct a year over the next two
years while the state budget deficit should be cut to 2.2 pct
of GDP in 1988 from 2.6 pct this year and 2.9 pct in 1986.
    Other forecasts prepared by the Commission indicated a 1.8
pct 1988 rise in household purchasing power, up from 1.1 pct
this year but less than last year's 2.9 pct, and a 1.6 pct rise
in household consumption, compared with this year's 1.5 pct and
last year's 2.9 pct.
    Business investment is forecast to rise four pct a year
this year and next after 3.7 pct last year, with private sector
productive investment rising 4.9 pct in 1988 after a six pct
rise this year and 5.5 pct in 1986.
    The Ministry said updated forecasts would be prepared
before the autumn to serve as the basis for the 1988 budget,
which the government is now preparing for presentation in
September.


.I 13695
.C
bop;trade;
.W
DANISH TRADE IN BALANCE IN FEBRUARY.
    COPENHAGEN, March 23 - Denmark's balance of payments on
current account was provisionally put at zero in February,
against a 181 mln crown surplus in January and a 1.5 billion
deficit in February 1986, the National Statistics Office said.
    Exports rose to 13.94 billion crowns in February from 12.53
billion in January, against 14.16 billion in February last
year. February imports rose to 13.94 billion from 12.35 billion
in January, against 15.67 billion in February 1986.
    The February figure provisionally gives a trade surplus for
1987 of 180 mln crowns, against a 3.04 billion deficit in the
same 1986 period.


.I 13697
.C
sugar
.W
BEGHIN-SAY SEES SOLUTION TO EC SUGAR DISPUTE.
    PARIS, March 23 - A settlement could soon be reached in the
dispute between European sugar producers and the European
Community over EC export licencing policies, Jean-Marc Vernes,
president of French sugar producer Beghin-Say, which is leading
the protest, told journalists today.
    "Our contacts with the EC authorities over the past few days
indicate that we are moving towards a solution," he said, adding
that if this happened the producers would withdraw the 854,000
tonnes of sugar they have offered into intervention.
    Vernes said that the protest, involving 770,000 tonnes of
sugar from French producers alone, was prompted by the EC's
policy since mid-1986 of offering export rebates which failed
to give producers an equivalent price to that they would obtain
by offering sugar into EC intervention.
    At last week's tender the EC Commission made an apparent
concession by offering a maximum rebate only 1.3 European
currency units (Ecus) per 100 kilos below the level producers
say is needed, compared with the previous week's rebate which
was 2.5 Ecus below the necessary level.
    Vernes would not say what form any compromise between the
producers and the EC would take, but he reaffirmed the
long-term desire of producers to export to the world market,
providing they were not losing money by doing so.
    Producers can withdraw their intervention offer after April
1, when the sugar will officially enter intervention stores, or
at any time over the following five weeks before the official
payment date.
    The EC has threatened to put the sugar back on the internal
market if the producers refuse to withdraw their offers.


.I 13698
.C
earn
.W
DRESDNER DECLINES COMMENT ON SCRIP SHARE REPORT.
    FRANKFURT, March 23 - A Dresdner Bank AG <DRSD.F> spokesman
said the bank had no comment on newspaper reports that
shareholders would be offered free subscription shares.
    Dresdner shares surged to open 10.50 marks higher at
319.50, before climbing further. Other bank stocks also rose
strongly and dealers cited speculation already in the market
that Deutsche Bank AG <DBKG.F> would make a similar move. Such
"scrip" issues, if they occurred, would mark the first time
German banks had ever issued free shares.
    The varying reports said Dresdner shareholders may be
offered one free share for every 15, 18 or 20 already held.


.I 13699
.C
lei
.W
U.K. LONGER CYCLICAL INDICATOR RISES IN FEBRUARY.
    LONDON, March 23 - The U.K. Longer leading cyclical
indicator rose in February by 5.8 pct after January's 1.9 pct
rise, figures from the Central Statistical Office show.
    The indicator, base 1980, which shows trends in the economy
12 months ahead, was put at 108.7 in February compared with
102.7 in January and 99.5 in February 1986.
    The shorter leading indicator, signalling trends six months
ahead, was put at 97.1 for January, the latest month for which
data were available, after December's 96.5. This compared with
98.4 in January 1986.
    The coincident indicator, designed to signal current
turning points in the economy, was put at 91.2 in January, down
from 91.9 in December and 91.6 in january 1986.
    The lagging index, which the CSO says shows a turning point
in the economy about a year after it happens, was at 92.4 in
January, down from 92.5 in December and 93.0 a year earlier.
    The Office said leading indicators still do not show a
consistent picture of the likely future developments of the
business cycle in Britain.
    It said the strong rise in the longer leading index between
December and February was due mainly to rises in share prices.


.I 13700
.C
wheat;grain;
.W
AUSTRALIAN WHEAT AREA TO FALL, FORECASTER SAYS.
    MELBOURNE, March 23 - Australian wheat plantings are
forecast to fall to 10.40 mln hectares in 1987/88 from 11.72
mln sown in 1986/87, Australian Wheat Forecasters Pty Ltd (AWF)
said in its first preliminary crop forecast.
    But there was no reason to expect Australian production in
1987/88 would be less than the 16.5 mln tonnes of last year,
the private forecaster said, as crops in New South Wales and
Queensland suffered from poor yields last season.
    Most of the fall in plantings was expected in Western
Australia while state average yields would be assisted by
growers sowing wheat on fallows and rest paddocks, it said.
    The main reason for a low Western Australia estimate was a
poor profit outlook under cost, credit and yield pressures. But
in the eastern states the wheat area should hold up provided
that rainfall between now and June is not less than average,
AWF said.
    Although some farmers were saying they intended to cut back
wheat area by 20 pct, AWF said this was unlikely since they
needed cash flow and there were problems with alternative
crops.
    "The lack of statutory marketing for oilseeds, pulses and
oats is a cause for concern if those crops are to comprise a
high proportion of growers' income," AWF said.
    AWF's state area forecasts in mln hectares, with 1986/87
production in mln tonnes, are as follows (crop forecasts were
not given for the new wheat year)
                   Area         Crop
             1987/88  1986/87  1986/87
 Queensland    0.82     0.82     0.95
 N.S.W.        3.07     3.17     4.40
 Victoria      1.53     1.63     3.25
 S.Australia   1.45     1.64     2.30
 W.Australia   3.53     4.46     5.60


.I 13701
.C
ipi
.W
******FRENCH JANUARY INDUSTRIAL PRODUCTION FELL 1.98 PCT - OFFICIAL.
Blah blah blah.

.I 13703
.C
money-fx;interest;
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN.
    LONDON, March 23 - The Bank of England said it revised down
its forecast of the deficit in the money market today to 750
mln stg from 800 mln.


.I 13705
.C
interest
.W
JAPAN LONG-TERM PRIME SEEN CUT TO RECORD LOW SOON.
    TOKYO, March 23 - Japan's long-term banks will soon cut
their prime rate, now at a record low 5.5 pct, by 0.2 or 0.3
percentage point in response to falling secondary market yields
on their five-year debentures, long-term bankers said.
    The long-term prime rate is customarily set 0.9 percentage
point above the coupon on five-year bank debentures issued by
the long-term banks every month.
    The latest bank debentures, at 4.6 pct, have met strong
end-investor demand on the prospect of further declines in yen
interest rates, dealers said. The current 5.5 pct prime rate
has been in effect since February 28.


.I 13707
.C
trade
.W
YEUTTER SEES U.S., JAPAN VERGING ON TRADE CONFLICT.
    TAUPO, New Zealand, March 23 - The United States and Japan
are on the brink of serious conflict on trade, especially over
semiconductors, Japanese unwillingness for public bodies to buy
U.S. Super-computers, and barriers to U.S. Firms seeking to
participate in the eight billion dlr Kansai airport project,
U.S. Trade Representative Clayton Yeutter said.
    He was talking to reporters yesterday on the eve of a
two-day meeting of trade ministers which will review progress
made by committees set up after the Uruguay meeting last
September launched a new round of GATT (General Agreement on
Tariffs and Trade) talks.
    European Community (EC) commissioner Willy de Clercq
meanwhile told reporters conflict between the world's three
major trading and economic powers -- the EC, the U.S. And Japan
-- set a poor example for other members of GATT.
    Australian Trade Minister John Dawkins told the reporters
bilateral retaliation at the enormous expense of the rest of
the world was no way to solve trade disputes.
    New Zealand trade minister Mike Moore told his colleagues
great progress had been made in preparing for the current round
of GATT negotiations which must not be sidetracked.
    The ministers have said they want to maintain the momentum
towards fresh negotiations or avert serious trade conflicts.
    Yeutter said the problem with international trade talks was
that they tended to get bogged down for years. "Countries don't
get very serious about negotiating until the end of the day
which is, maybe, five or six years in the future."
    He also said he did not consider the new U.S. Congress as
protectionist as it was 18 months ago. "That's a very healthy
development," he added."If you asked me about that a year or 18
months ago I would have said that it was terribly
protectionist."
    "Members of Congress, that is the contemplative members of
Congress, have begun to realise protectionism is not the answer
to the 170 billion dlr trade deficit," Yeutter said.
    "They've also begun to realise that you cannot legislate
solutions to a 170 billion dollar trade deficit so they are
more realistic and, in my judgement, more responsible on that
issue than they were 12 or 18 months ago."
    He added, "Whether that will be reflected in the legislation
that eventually emerges is another matter."


.I 13709
.C
ship;crude;
.W
IRAN SAYS IT INTENDS NO THREAT TO GULF SHIPPING.
    LONDON, March 23 - Iran said reports that it intended to
threaten shipping in the Gulf were baseless, and warned the
U.S. And other countries not to interfere in the region.
    Tehran radio, monitored by the BBC, quoted a Foreign
Ministry spokesman as saying any attempt at interference would
be met by "a strong response from Iran and other Moslems in the
world."
     U.S. Defence Secretary Caspar Weinberger, in remarks
apparently unrelated to the broadcast, said the U.S. Would do
whatever was necessary to keep shipping lanes open in the face
of new Iranian anti-ship missiles in the Gulf.
    The U.S. State Department said two days ago Tehran had been
told of U.S. Concern that Iranian anti-ship missiles posed a
threat to the free flow of oil from the Gulf.
    U.S. Officials have said Iran has new Chinese-made
anti-ship "Silkworm" missiles, which pose a greater threat to
merchant ships than missiles used before.
    The Iranian spokesman said the reports that Iran intended
to attack ships were "misleading propaganda."
    He said Iraq's President Saddam Hussein was the main cause
of tension in the Gulf and said Iran would continue to use "all
its legitimate means to stem the cause of tension."
    Weinberger said in a television interview in the U.S. "We
are fully prepared to do what's necessary to keep the shipping
going and keep the freedom of navigation available in that very
vital waterway."
    "We aren't going into any disclosures or discussions of what
might happen, but we are certainly very sympathetic to and
listening carefully to any suggestions for our assistance in
keeping navigation free in that area," he said.
    Weinberger said U.S warship movements in the Gulf area were
not unusual.
    A U.S. Navy battle group led by the aircraft carrier Kitty
Hawk is currently in the northern Arabian Sea.
    The Iranian spokesman was quoted by Tehran radio as saying
the U.S. Was trying to build up its military presence in the
region.


.I 13710
.C
dlr;money-fx;trade;
.W
BAKER DENIES DOLLAR TARGET EXISTS.
    LONDON, March 23 - U.S. Treasury Secretary James Baker
again said the meeting of six major industrial nations in Paris
last month did not establish a target exchange rate for the
dollar.
    Baker said in a television interview aired here yesterday:
"We don't have a target for the dollar." He declined to comment
on what might be a desired level for the dollar, saying: "We
really don't talk about the dollar."
    He said protectionism was becoming "extremely strong" in the
U.S. In response to widening U.S. Trade deficits and import
barriers in other countries.
    "The mood in the United States is extremely disturbing. It's
extremely strong," he said.
    "As I've said before, we sort of see ourselves as engaged
here in a real struggle to preserve the world's free trading
system, because if the largest market in the world (the U.S.)
goes protectionist we run the risk of moving down the same path
that the world did in the late 1930s," he said.
    While relative exchange rates had a role to play in
defusing the threat of protectionism, it alone did not offer
any solution, he said.
    "You must address this problem on the exchange rate side,
but it cannot be solved on the exchange rate side alone. It's
far more comprehensive and broad than that, and the solution of
it requires a comprehensive approach," Baker said in the
interview.
    Baker said it would be necessary for other countries to
adjust their currencies upwards, as well as remove their
barriers to U.S. Imports. But he did not elaborate or name any
countries.


.I 13711
.C
ipi
.W
FRENCH INDUSTRIAL PRODUCTION FALLS IN JANUARY.
    PARIS, March 23 - French industrial production fell a
seasonally adjusted 1.98 pct in January after revised unchanged
output in December, the National Statistics Institute (INSEE)
said.
    The figure, which excludes construction and public works,
put the January index, base 1980, at 99 after 101 in December.
January output was 1.98 pct down on January 1986.
    INSEE, which from January changed its base year to 1980
from 1970, originally had December output down 2.2 pct on
November, using the old base year.
    INSEE said production in January was affected by rail
strikes and severely cold weather.
    It said output of gas and electricity was very high but
activity slowed on construction sites, in quarries and in
certain base industries.


.I 13714
.C
coffee
.W
GOOD DEMAND FOR COLOMBIANS ON BREMEN MARKET.
    BREMEN, March 23 - The Bremen green coffee market attracted
good buying interest for Colombian coffee last week, while
Brazils were almost neglected, trade sources said.
    Buyers were awaiting the opening of Brazil's export
registrations for May shipment, which could affect prices for
similar qualities, they said.
    Colombia opened export registrations and good business
developed with both the FNC and private shippers. Prices were
said to have been very attractive, but details were not
immediately available.
    Central Americans were sought for spot and afloat.
    In the robusta sector nearby material was rather scarce,
with turnover limited, the sources said.
    The following offers were in the market at the end of last
week, first or second hand, sellers' ideas for spot, afloat or
prompt shipment in dlrs per 50 kilos fob equivalent, unless
stated (previous week's prices in brackets) -
    Brazil unwashed German quals 100 (102), Colombia Excelso
105 (110), Salvador SHG 110 (108), Nicaragua SHG 109 (same),
Guatemala HB 111 (same), Costa Rica SHB 113 (112), Kenya AB FAQ
142 (134), Tanzania AB FAQ 120 (same), Zaire K-5 105 (unq),
Sumatra robusta EK-1 91 CIF (same).


.I 13715
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 97 MLN STG ASSISTANCE.
    LONDON, March 23 - The Bank of England said it provided the
money market with help of 97 mln stg in the morning session.
    This compares with the Bank's revised estimate of a 750 mln
stg shortage in the system today.
    The central bank bought bank bills outright comprising 12
mln stg in band one at 9-7/8 pct and 85 mln stg in band two at
9-13/16 pct.


.I 13718
.C
ship
.W
IRANIAN TANKER ATTACKED OVER WEEKEND - LLOYDS.
    LONDON, March 23 - The Iranian steam tanker Avaj, 316,379
tonnes dw, was attacked and hit at 1715 hours on March 21,
Lloyds Shipping Intelligence service reported.
    One person was killed. The tanker is owned by the National
Iranian Tanker Co.


.I 13719
.C
trade
.W
NEXT WORLD TRADE NEGOTIATIONS MUST SUCCEED - NZ.
    By Christopher Pritchett, Reuters
    TAUPO, New Zealand, March 23 - Ministers from more than 20
nations were told by New Zealand that the next international
negotiations on liberalising trade would be the last this
century and the cost of failure could not be measured.
    Trade minister Mike Moore told his colleagues at a
welcoming ceremony before two days of talks here that great
progress had been made in preparing for the negotiations which
must not be sidetracked.
    "We live in troubled and dangerous times for the world
trading system," he said.
    "We have seen that the failure of the world trading system
has caused great depression and conflict in the past. Our
failure to maintain the momentum will be at great cost to us
all," Moore said.
   "The cost of failure is beyond calculation. It is our last
hope and best opportunity this century. We will not get another
chance before the year 2000," he added.
    The ministers are in New Zealand to review world trade
since the "Uruguay round" talks last September. The talks are 
also part of preparations for a full-scale June meeting of the
General Agreement on Tariffs and Trade (GATT) in Venice.
    The Uruguay meeting is considered by most countries to have
been particularly successful, with northern hemisphere
countries managing to have service industries such as banking
and insurance included in the next full round.
    The southerners' goal of including agricultural and
tropical products also was met.
    The meeting at this North Island tourist resort is
described by participants as informal and no declaration is
expected.
    Moore said one aim was to "instil a sense of political
urgency to avert potential economic tragedy."
    Another was to seek ways of popularising freer trade to
people who felt the pain of readjustment but could not see the
benefits, as well as preventing "bush fires of confrontation
while we proceed with orderly negotiations."
    The meeting is being attended by 25 overseas delegations
including representatives of GATT and the Economic Community.
    The delegates include U.S. Trade Representative Clayton
Yeutter.
    American sources say he is ready to state that the best way
to reverse protectionist sentiment in the United States is to
implement four key Uruguay proposals:
    -- an end to agricultural subsidies;
    -- inclusion of trade in services and investments in GATT
regulations;
    -- tightening of restrictions on pirating of so-called
intellectual property such as trademarks, patents and
copyrights;
    -- new rules to resolve trade disputes among GATT's 92
member states.
    Earlier, New Zealand sources had said French Foreign Trade
Minister Michel Noir had pulled out of the informal GATT talks
for domestic political reasons.
    Cabinet chief Bernard Prauge will lead the French
delegation.


.I 13720
.C
money-fx
.W
SWISS SIGHT DEPOSITS RISE 743.7 MLN FRANCS.
    ZURICH, March 23 - Sight deposits of commercial banks at
the Swiss National Bank rose 743.7  mln Swiss francs in the
second 10 days of March to 8.40 billion, the National Bank
said.
    Foreign exchange reserves fell 392.1 mln francs to 33.55
billion.
    Sight deposits are a major indicator of money market
liquidity in Switzerland.


.I 13721
.C
ship;coffee;
.W
CASH CRISIS HITS UGANDAN COFFEE BOARD.
    KAMPALA, March 23 - Uganda's state-run Coffee Marketing
Board (CMB) has been suffering a cash crisis for the past two
months due to a bottleneck in export shipments and
administrative delays in handling payments, trade sources said.
    The CMB needs between 10 and 15 billion shillings (the
equivalent of seven to 10 mln dlrs) to pay farmers and
processors for coffee already delivered, but its present export
revenue is insufficient to cover such expenditure, they said.
    The board's cash crisis has serious implications for the
economy as a whole, since coffee accounts for 95 pct of
Uganda's total exports.
    The CMB's financial difficulties first started in January
following delays in rail-freighting export consignments of
coffee to the ports of Mombasa, Dar es Salaam and Tanga.
    These delays were caused by a shortage of railway wagons in
Uganda and bottlenecks on the ferries which transport Ugandan
wagons across Lake Victoria to link up with the Kenyan and
Tanzanian railway systems, the sources said
    Marketing Minister John Sebaana-Kizito publicly
acknowledged on February 19 that the CMB had run up arrears to
local suppliers as a result of the shortage of transport for
moving exports.
    Sebaana-Kizito said at the time that the payments squeeze
would be resolved in two weeks.
    However, an accident to the rail ferry which plies between
the Ugandan lake port of Jinja and Kisumu in Kenya put it out
of action between February 21 and March 15, causing fresh
delays in cargo movements.
    Coffee exports are especially sensitive to the disruption
of rail transport since president Yoweri Museveni has banned
their haulage by road in a drive to save transport costs.
    Transport difficulties meant that by early February the CMB
was holding unsold coffee stocks of around 750,000 bags.
    These stocks were equivalent to one quarter of Uganda's
expected three mln 60-kilo bag 1986/87 (October-September)
crop, the sources said.
    According to the sources, the board's financial problems
have been aggravated by long delays in processing export
receipts.
    The coffee board was taking about eight weeks to recycle
export receipts into payments to local producers, whereas
export bills handled by local banks took half that time to
process, they said.
    The sources said the CMB's price structure had been
overtaken by Uganda's high inflation rate, unofficially
estimated at about 200 pct, and that this was a further
disincentive to producers, already owed large arrears.
    "The coffee pricing structure is wrong and three months
behind, the foreign exchange rate is unrealistic, and the
sooner the so-called economic package is put in top gear, the
better for the coffee industry and the economy as a whole," one
of the sources said.
    The government is currently negotiating a package of
economic reforms with the World Bank and International Monetary
Fund aimed at underpinning a renewed inflow of foreign aid to
help Uganda's economic recovery after 15 years of political
strife.


.I 13725
.C
acq
.W
GENERAL PARTNERS IN GENCORP <GY> PROXY FIGHT.
    NEW YORK, March 23 - General Partners, the group tendering
for all GenCorp Inc shares at 100 dlrs each, said it has
started soliciting proxies against GenCorp's proposals to
increase its number of authorized shares outstanding, create a
board with staggered election dates and eliminate cumulative
voting.
    The proposals are to be voted on at the March 31 annual
meeting.
    General Partners, a partnership of privately-held <Wagner
and Brown> and AFG Industries Inc <AFG>, made the disclosure in
a newspaper advertisement.
    The partnership has already filed suit in U.S. District
Court in Columbus, Ohio, seeking to block a vote on the
proposals and to invalidate GenCorp's defensive preferred share
purchase rights.
    General Partners asked shareholders to either vote against
the proposals or abstain from voting on them.                  
   


.I 13726
.C
acq
.W
USAIR <U> CUTS PIEDMONT <PIE> SHARES SOUGHT.
    NEW YORK, March 23 - USAir Group Inc said it has amended
its 69 dlr per share tender offer for shares of Piedmont
Aviation Inc to reduce the maximum number it will accept to
9,309,394. Previously it had sought all shares.
    In a newspaper advertisement, USAir said the offer and
withdrawal rights have not been extended and will still expire
April 3, along with the new proration period.
    On Friday, the U.S. Department of Transportation approved
USAir's acquisition of 51 pct of Piedmont. If USAir were to
acquire more than 51 pct in the tender, it would be required to
sell the excess within one week.
    USAir said receipt of the 9,309,394 shares -- which is also
the minimum amount it will accept -- would give it a total of
about 61 pct of Piedmont shares currently outstanding and 50.1
pct on a fully diluted basis.
    The company said even if the purchase of the 9,309,394
Piedmont shares caused it to exceed the 51 pct limit, USAir
would waive the condition to the offer that the Transportation
Department approve a voting trust agreement permitting USAir to
buy and hold shares under the offer pending review of USAir's
application to gain control of Piedmont, subject to the order
not being rescinded or modified in an adverse way.


.I 13727
.C
rubber
.W
NEW RUBBER PACT ADOPTED AT GENEVA CONFERENCE.
    GENEVA, March 23 - Producers and consumers representing
most of world trade in natural rubber adopted a new
International Natural Rubber Agreement (INRA) aimed at
stabilizing world prices over the next five years.
    Negotiations for a new INRA, to succeed the present one
which runs out next October, began nearly two years ago.
    Agreement on the new five-year pact, which uses a buffer
stock to keep prices stable by selling or buying rubber as
rates rise or fall, was reached at a two-week session here
under the auspices of the United Nations Conference on Trade
and Development (UNCTAD).


.I 13730
.C
crude
.W
STUDY SAYS OIL PRICE FALL SPURS BANKRUPTCIES.
    WASHINGTON, March 23 - The sharp drop in world oil prices
the past year triggered a 60 pct increase in bankruptcies in
the country's oil states, according to a study released by the
American Petroleum Institute (API).
    API said the Dunn and Bradstreet study found that business
failures rose nationally by 6.9 pct in 1986 over 1985, but in
the "oil patch" of the Southwest the increase was 59.9 pct.
    It said bankruptcies in Texas were up 57.4 pct, Oklahoma,
55.9 pct, Colorado, 55.8 pct and Louisiana, 46.6 pct.
    In Alaska, failures rose by 66.2 per cent, it said.
    API also said that three of the states with the highest
number of bank failures last year were large oil and gas
producers - Texas, Oklahoma and Kansas.


.I 13731
.C
crude;nat-gas;
.W
WORLD DEPENDENCY ON MIDEAST OIL SAID INEVITABLE.
    By TED d'AFFLISIO, Reuters
    NEW YORK, March 23 - The world's dependency on the Mideast
as the source for its petroleum is growing and nothing is going
to stop it, Donald K. McIvor, an Exxon Corp <XON> Director and
senior vice president told Reuters in an interview.
    "Non-OPEC production will begin to decline and the gap
between demand and supply will widen so that the trend to
increasing dependence on OPEC and the Middle East is
inevitable," McIvor said.
    Decreased supplies will firm prices for crude oil but are
not likely to change a growing dependence, McIvor said.
    McIvor, Exxon's senior vice president responsible for oil
and gas exploration and production said that dependence would
result from the Mideast's large spare capacity at a time when
the rest of the world consumes more oil than it was finding.
    "Since 1970 we've been consuming oil at rates of 20-25
billion barrels per year while making new discoveries of only
about 10-15 bilion barrels per year," McIvor said.
    "The bulk of the inventory and more than half of the
remaining proved reserves lies in the middle east which is
producing at much less than current capacity," he added.
    McIvor said that of the some 30,000 oil fields discovered
so far only 37 "one-one thousandth of the total number contained
about 35 pct of all the oil ever discovered."
    McIvor said, in response to a question, that he did not
believe there were any more "super giants", or oil fields with
reserves greater than five billion barrels, to be found which
would change the conclusion of the world's growing dependency.
    "Of those 37 super giants only 11 lie outside the Middle
East. Only five of the 37 have been discovered in the past 20
years and only two of these lie outside the middle east
(Cantarell in Mexico and Alaska's North Slope)." McIvor said.
    McIvor said that many of the large fields outside the U.S.
like Alaska's Prudhoe Bay and the North Sea were reaching a
peak and would soon begin to decline.
    But the Exxon executive said that there were still plenty
of opportunities to be explored and developed outside of the
Middle east, particulartly in Canada, the North Sea, and
Australia and Africa.
    McIvor said that decisions to explore and drill in those
areas would be depedent upon both the expectations of a higher
price of oil as well as the legal regime affecting the
companies.
    "The ideal regime is a stable one not one where there is a
constant change in policies," McIvor said.
    McIvor said he opposed import subsidies or tariffs used to
increase exploration as these only benefit one part of the
economy at the expense of other parts of the economy.
    Asked about the options offered this week by U.S. Energy
Secretary Herrington to increase U.S. production McIvor said he
could not comment on subjects like the oil depletion allowance
now but "the thrust of his (Herrington) report is valid. It has
highlighted the growing dependency on the Middle east and the
need to increase U.S. production."
    McIvor also said that he expected natural gas to play a
greater role in the future in meeting energy needs.
    "Natural gas will have the opportunity to become an
increasingly important part of the worlkd's energy supply,"
McIvor said.
    "Crude oil will be used more and more as a transportation
fuel and natural gas will be used more to generate heat, as an
industrial fuel," he added.


.I 13732
.C
cpi
.W
S. AFRICAN CONSUMER PRICE INFLATION RISES SLIGHTLY.
    PRETORIA, March 23 - South African year-on-year consumer
price inflation rose slightly to 16.3 pct in February after
falling sharply to 16.1 pct in January from 18.1 pct in
December, Central Statistics Office figures show.
    The monthly rise in the all items index (base 1980) was
1.09 pct to 251.0 in February after a 1.4 pct increase to 248.3
in January.
    A year ago the index stood at 215.8 and year on year
consumer price inflation at 18.05 pct.


.I 13733
.C
trade
.W
FINLAND FEBRUARY TRADE SURPLUS AT 641 MLN MARKKA.
    HELSINKI, March 23 - Finland had a 641 mln markka trade
surplus in February following an 80 mln markka surplus in
January and a 614 mln surplus in February 1986, Customs Board
preliminary figures showed.
    Exports in February were 6.38 billion markka and imports
5.74 billion compared with exports of 6.72 billion and imports
of 6.64 billion in January and exports of 6.92 billion and
imports of 6.31 billion in February last year.


.I 13734
.C
oilseed;grain;barley;rapeseed;
.W
WEST GERMAN BARLEY, RAPE AFFECTED BY WINTER KILL.
    HAMBURG, March 23 - Winter kill has probably affected West
German winter barley and rapeseed to an above average degree
this season, West German grain trader Alfred C. Toepfer said in
its latest report.
    It is too soon to assess the extent of the damage, but it
is likely that northern West German crops are particularly at
risk because of insufficient snow cover, it said.
    The soil needs to warm up rapidly and moisture content must
improve to avoid further delays to spring field work, it added.


.I 13735
.C
ship
.W
N.Z. PORTS REOPEN, BUT FURTHER DISRUPTION LIKELY.
    WELLINGTON, March 23 - New Zealand ports reopened at 0730
hrs local time (1930 GMT March 22) after being closed since
March 19 because of a strike over pay claims by watersiders, a
Waterside Federation spokesman said.
    But industrial action by other port workers is likely to
cause further disruption, Harbour Workers union secretary Ross
Wilson told Reuters.
    Wilson said his members are holding stopwork meetings this
morning to consider further stoppages over their pay claim.
    The two disputes are not related.
    Harbour Workers around the country went on strike for 24
hours on March 16, but Wilson said any further action will
occur on a port-by-port basis.


.I 13738
.C
acq
.W
<MICROTEL INC> MAKES ACQUISITION.
    BOCA RATON, Fla., March 23 - Microtel Inc said it has
completed the acquisition of <American Teledata Corp> and its
US Dial subsidiary, which provide long distance telephone
service in northeast Florida. Terms were not disclosed.
    Microtel's shareholders include Norfolk Southern Corp
<NSC>, M/A-Com Inc <MAI>, Centel Corp <CNT>, Alltel Corp <AT>
and E.F. Hutton Group Inc <EFH>.


.I 13739
.C
earn
.W
******JAMESWAY CORP SETS 2-FOR-1 STOCK SPLIT, UPS CASH PAYOUT 33 PCT.
Blah blah blah.

.I 13740
.C
earn
.W
<AMERICAN VARIETY INTERNATIONAL INC> NINE MTHS.
    LOS ANGELES, March 23 - March 31, 1986 end
    Shr loss seven cts vs loss 11 cts
    Net loss 76,888 vs profit 106,885
    Revs 752,234 vs 922,036


.I 13741
.C
acq
.W
AMERICAN VARIETY ACQUISITION PACT TERMINATED.
    LOS ANGELES, March 23 - <American Variety International
Inc> said its agreement to acquire <First National
Entertainment Corp> has been terminated because First National
was not able to fulfill terms of the agreement.
    It said due to protracted negotiations with First National,
several American Variety divisions were inoperative in 1986.
    American Variety said it is reevaluating its record and
tape library for possible conversion to compact discs.


.I 13742
.C
earn
.W
JAMESWAY <JMY> SETS SPLIT, HIGHER CASH PAYOUT.
    SECAUCUS, N.J., March 23 - Jamesway Corp said its board
declared a two for one stock split and increased the quarterly
cash dividend by 33 pct.
    The company said the dividend on the pre-split shares was
increased to four cts from three cts.
    It said both the split and the dividend are payable May 23
to holders of record April 20, adding the company will have
about 13,860,000 shares outstanding after the split.


.I 13743
.C
acq
.W
HARPER/ROW <HPR> GETS EXPRESSIONS OF INTEREST.
    NEW YORK, March 23 - Harper and Row Publishers Inc said its
special committee of independent directors has received
expressions of interest from a considerable number of domestic
and foreign firms with respect to restructuring or acquisition
transactions with the company.
    Winthrop Knowlton, chairman of special committee said "no
determination has been made by the full board as to any
transaction."
    He said the special committee and Kidder Peabody and Co Inc
intend to engage in discussions with interested parties in an
effort to come to a conclusion in the near future.
    Formation of the special committee was announced early last
week when Harper and Row said its board had taken no action on
two pending acquisition proposals.
    At that time, directors also indefinately postponed a
planned special shareholders vote on a restructuring proposal
which would have created a Class B common with 10 votes a share
and limited transferability.
    The acquisition proposals had come from Theodore L. Cross,
owner of about six pct of the company's stock who offered 34
dlrs a share, and Harcourt Brace Jovanovich Inc <HBJ>, which
offered 50 dlrs a share.


.I 13744
.C
earn
.W
******HUMANA INC 2ND QTR SHR 44 CTS VS 54 CTS.
Blah blah blah.

.I 13745
.C
acq
.W
FRUIT/LOOM <FTL> TO SELL UNIT FOR 145 MLN DLRS.
    CHICAGO, March 23 - Fruit of the Loom Inc said it agreed to
sell its General Battery Corp subsidiary to Exide Corp for
about 145 mln dlrs in cash.
    The proposed sale will complete Fruit of the Loom's
previously announced plan to divest itself of unrelated
businesses.
    Proceeds from the proposed transaction are more than the
price projected in the company's recent initial public
offering, it said.
    Completion of the transaction is subject to a definitive
agreement, regulatory approvals, financing and certain other
conditions and is expected to close May one, 1987, the company
said.


.I 13746
.C
acq
.W
CITYQUEST MAKES 120 MLN STG BID FOR WICKES.
    LONDON, March 23 - <Cityquest Plc>, a newly formed company,
is making a recommended 120 mln stg offer for builders
merchants and DIY (do-it-yourself) company <Wickes Plc>, Wickes
said in a statement.
    Undertakings to accept what is effectively a management
buyout have been accepted by holders of 88.9 pct of the shares.
    The statement said the offer was due to a decision by
Wickes International Corp, a member of the U.S. Wickes
Companies <WIX.A> Inc group, which holds an 80.5 pct stake, to
realise much of its investment.
    The offer would enable Wickes to become fully independent
and once the bid succeeded all the Wickes directors would
become members of the Cityquest board.
    The offer will be of 345p cash for every Wickes share.
Wickes was last quoted at 345p compared with 275p at Friday's
close.
    Wickes shareholders will also have the option of taking one
Cityquest share or 205p in loan notes for every 205p of the
cash consideration.
    Henry Sweetbaum is chairman and chief executive of both
Cityquest and Wickes, and it was intended that Cityquest's name
would be changed to Wickes in due course.
    Wickes came to the U.K. Unlisted Securities Market in
January, 1986 with a capitalisation of about 96 mln stg.
    Cityquest has a fully paid share capital of one mln stg. S
G Warburg Securities has organised commitments from a group of
investors to subscribe for 65 mln stg in shares and 28.2 mln
stg in subordinated convertible loan stock. Lead investor is
Investors in Industry Plc
    Cityquest also has loan facilities of 30 mln stg.


.I 13747
.C
earn
.W
HUMANA INC <HUM> 2ND QTR FEB 28 NET.
    LOUISVILLE, Ky., March 23 -
    Shr 44 cts vs 54 cts
    Net 42.9 mln vs 53.7 mln
    Revs 983.3 mln vs 858.8 mln
    Six mths
    Shr 85 cts vs 1.11 dlrs
    Net 83.1 mln vs 109.8 mln
    Revs 1.91 billion vs 1.66 billion


.I 13748
.C
earn
.W
WINCHELL'S DONUT <WDH> SETS INITIAL QUARTERLY.
    LA MIRADA, Calif., March 23 - Winchell's Donut Houses LP
said it has declared an initial quarterly dividend of 45 cts
per unit on Class A and Class B limited partnership units,
payable May 29 to holders of record March 31.


.I 13750
.C
earn
.W
TRITON GROUP LTD <TRRO> 4TH QTR JAN 31 NET.
    LA JOLLA, Calif., March 23 -
    Oper shr profit nil vs loss nil
    Oper net profit 671,000 vs loss 138,000
    Sales 104.3 mln vs 70.8 mln
    Avg shrs 101.2 mln vs 66.8 mln
    Year
    Oper shr profit six cts vs profit five cts
    Oper net profit 6,309,000 vs profit
    5,144,000
    Sales 349.8 mln vs 303.4 mln
    Avg shrs 85.0 mln vs 76.3 mln
    NOTE: Net excludes discontinued operations nil vs gain
196,000 dlrs in quarter and loss 293,000 dlrs vs gain 407,000
dlrs in year.
    Net excludes tax loss carryforward 1,423,000 dlrs vs
reversal of tax credit 625,000 dlrs in quarter and credits
5,437,000 dlrs vs 7,261,000 dlrs in year.
    Results include U.S. Press Inc from November Three
acquisition.


.I 13755
.C
money-fx
.W
NIGERIA CHANGES AUCTION RULES TO DEFEND NAIRA.
    LAGOS, March 23 - Nigeria's Central Bank has changed the
rules governing its foreign exchange auctions in what analysts
see as a means of defending the naira currency, which has
depreciated steadily.
    The bank said in a statement that from April 2, banks
bidding for foreign exchange would have to pay at the rate they
offered and not, as presently, at the rate of the lowest
successful bid made at the auction.
    This should discourage banks from bidding high to ensure
that they were successful while paying the lower "marginal" rate,
analysts said.
    The Central Bank also announced the auctions would be
fortnightly, not weekly, beginning on April 2.


.I 13757
.C
earn
.W
AAR CORP <AIR> 3RD QTR FEB 28 NET.
    ELK GROVE VILLAGE, ILL., March 23 - 
    Shr 37 cts vs 32 cts
    Net 3,892,000 vs 2,906,000
    Sales 71.8 mln vs 64.5 mln
    Nine mths
    Shr 1.08 dlrs vs 91 cts
    Net 10,946,000 vs 8,206,000
    Sales 214.1 mln vs 179.4 mln
    Avg Shrs 10.5 mln vs 9.1 mln


.I 13761
.C
trade
.W
GATT MEETING HEARS PLEA FOR AFRICAN DEBT RELIEF.
    TAUPO, New Zealand, March 23, Reuter - Debt among African
countries will continue to grow and their economies will remain
stifled unless developed countries lower their interest rates,
Nigerian Trade Minister Samaila Mamman said today.
    He told an informal meeting of the General Agreement on
Tariffs and Trade the widening gap between industrialized and
developing countries and an unfair international economic
system were major obstacles to growth in developing countries.
    "I wish to emphasize that the growth in the volume of the
external indebtedness of African countries reflects the full
effect of the deflationary monetary and trade policies of the
developed market economy countries," Mamman said.
    Delegates from 23 countries are attending the talks of the
world trade body in the New Zealand resort of Taupo.


.I 13765
.C
trade
.W
JAPAN SAYS IT TRYING TO EXPAND DOMESTIC DEMAND.
    TAUPO, New Zealand, March 23 - Japan has assured a meeting
of trade ministers it is making every effort to expand domestic
demand and restructure its economy.
    Japanese trade representative Tsomu Hata told an informal
General Agreement on Tariffs and Trade (GATT) meeting that, in
addition to demand boosting measures adopted last September, a
comprehensive economic program will be prepared after the
1987/88 budget is approved.
    Hata, speaking at the first session of the two-day meeting,
said agriculture is no exception to the goal of restructuring
the economy, but did not elaborate.
    Hata said protectionist pressures in the international
economy are as strong as ever, reflecting financial deficits,
payment imbalances and serious unemployment in many countries.


.I 13766
.C
earn
.W
******SUPERMARKETS GENERAL CORP 4TH QTR 50 CTS VS 52 CTS.
Blah blah blah.

.I 13767
.C
ship
.W
WEST GERMAN SHIP SINKS OFF WEST AFRICA.
    LAS PALMAS, March 23 - The West German-registered motor
vessel Stefan E. Sank off the West African coast early today
and one of its eight crew members was killed, a Spanish navy
spokesman said.
    He said the captain of the Singapore-registered tanker Nord
Pacific reported in a radio message that he had picked up the
remaining seven crewmen of the 2,223 tonnes dw Stefan E.,
Together with the body of the dead man.


.I 13768
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 485 MLN STG HELP.
    LONDON, March 23 - The Bank of England said it had given
the money market a further 485 mln stg assistance in the
afternoon session. This takes the Bank's total help so far
today to 582 mln stg and compares with its forecast of a 750
mln stg shortage in the system today.
    The central bank bought bank bills outright comprising 345
mln stg in band one at 9-7/8 pct and 75 mln stg in band two at
9-3/16 pct. It also purchased 65 mln stg of treasury bills in
band one at 9-7/8 pct.


.I 13773
.C
trade
.W
JAPAN IN LAST DITCH EFFORT TO SAVE CHIP PACT.
    By Rich Miller, Reuters
    TOKYO, March 23 - Japan has launched a last-ditch effort to
salvage its computer micro-chip pact with the United States -
sending a letter to top American policy makers setting out its
case and instructing its producers to cut output further.
    "We must make our utmost effort to ward off any catastrophe,"
Ministry of International Trade and Industry (MITI) Deputy
Director General Masaji Yamamoto told reporters.
    "If hasty action is taken in the United States, it will
create very serious problems."
    The Reagan Administration's Economic Policy is expected to
meet Thursday to review Japanese compliance with the bilateral
agreement hammered out last year. Under the pact, Tokyo agreed
to stop selling cut-price chips in world markets and to
increase its imports of American semiconductors.
    Washington has accused Japan of reneging on the deal by
selling low priced chips in Asia and by failing to boost
American imports, and has threatened to take retaliatory
action.
    In an effort to save the agreement, MITI is asking Japanese
chip makers to limit production in the hope that will boost
domestic demand and reduce the incentive to export.
    Yamamoto said that Japan will slash output of 256 kilobit
dynamic random access and erasable programmable read only
memory chips by 11 pct in the second quarter. This follows a
cutback of more than 20 pct in the first three months of the
year.
    He said the cutbacks were already drying up the supply of
chips available for export through unregulated distributors in
the so-called grey market.
    "We have almost no grey market," he said. "Supply is
diminishing."
    To help ensure that the cutbacks are implemented, MITI
called in the president of Japan's largest semiconductor maker,
NEC Corp <NIPN.T> last week, he said. It is also issuing
specific instructions on production to the Japanese subsidiary
of <Texas Instruments Inc>.
    Trade and Industry Minister Hajime Tamura spelled out the
steps Japan was taking to salvage the pact and appealed for
U.S. Understanding in a letter to top American policy makers.
    The letter was sent today to U.S. Secretary of State George
Schultz, Treasury Secretary James Baker, Commerce Secretary
Malcolm Baldrige and U.S. Trade Representative Clayton Yeutter.
    The four, who make up the Economic Policy Council, are
expected to consider evidence presented by U.S. Chip maker
Micron Technology Inc <DRAM.O> of cut-price Japanese sales in
Hong Kong.
    Yamamoto admitted that <Oki Electric Industry Co>'s Hong
Kong subsidiary had sold chips at an inappropriate level but
denied that it was dumping chips at rock-bottom prices.
    "If the United States uses this as proof of dumping...We
will present our rebuttal," he said.
    The sales though were inappropriate in the light of MITI's
advice to semiconductor makers to sell chips at well above
production costs to avoid any hint of dumping, he said.
    He also called the case "strange," but he stopped short of
endorsing Japanese newspaper accusations that Oki had been
trapped into making the sales. He did say though that Micron
publicized the invoice documenting the sales on the same day
they were made and that Oki was unable to locate the person who
had bought the chips when it tried to buy them back last week.


.I 13774
.C
earn
.W
******AMERICAN MOTORS CORP GETS QUALIFIED AUDIT ON 1986 FINANCIAL STATEMENTS.
Blah blah blah.

.I 13775
.C
earn
.W
<ST . CLAIR PAINT AND WALLPAPER CORP> YEAR NET.
    Toronto, March 23 -
    Shr 66 cts vs 55 cts
    Net 2,422,000 vs 1,906,000
    Revs 59.3 mln vs 47.4 mln


.I 13776
.C
acq
.W
ALCO STANDARD <ASN> COMPLETES ACQUISITION.
    ORLANDO, Fla., March 23 - Delta Business Systems Inc said
it has completed a previously-announced merger into Alco
Standard Corp.
    Delta said it expects sales of about 30 mln dlrs for the
year ending in April.


.I 13778
.C
grain;barley;corn;
.W
RAINS PROMISE BOUNTIFUL CROPS IN ETHIOPIA.
    ADDIS ABABA, March 23 - Rain over wide areas has raised the
prospect of good food crops throughout Ethiopia, which suffered
a disastrous drought and famine two years ago.
    Aweke Aynalem, head of the government's Agriculture
Development Department, told reporters prospects were good for
attaining the target of 250,000 tonnes of grain in the present
growing season, one of two each year in Ethiopia.
    Normal crop production in Ethiopia is about 648,000 tonnes
a year, of which 250,000 tonnes are produced from the "belg"
(small) rains which fall at this time of year.
    The belg rains are used to plant quick-maturing crops like
maize and barley. Any shortfall during this period affects
production in the main rainy season, because farmers eat their
stocks of seed.
    Aweke said peasants in Wello, Tigre and Hararghe -- regions
which suffered severely from drought -- were now able to sow
their crops because of the favourable rains.
    The government had distributed large quantities of seed and
fertiliser, and the rains should ensure a good crop.


.I 13779
.C
earn
.W
AMERICAN MOTORS <AMO> STATEMENT QUALIFIED.
    DETROIT, March 23 - American Motors Corp said its auditors
qualified the company's 1986 financial report.
    The report was qualified due to uncertainties surrounding
the previously announced arbitration award against American
Motors' former subsidiary, AM General Corp. The award is being
contested.
    The report was filed today with the Securities and Exchange
Commission along with a copy of Chrysler Corp's <C> proposal to
take over American Motors.
    American Motors said earlier than an arbitration award,
made to Emerson Electric Co <EMR> in February, amounted to 60
mln dlrs plus legal expenses. American Motors has challenged
the award.
    The automaker sold the AM General unit to LTV Corp <QLTV>
in 1983, the same year it was awarded a five-year, 1.2 billion
dlr procurement contract with the military. LTV and AM General
last year sought protection under Chapter 11.
    The arbitration proceeding was called after Emerson
Electric charged AM General violated an agreement covering the
development of certain components in the contract.
    The components were for the military's "High Mobility
Multi-Purpose Wheeled Vehicle" (HMMWV), American Motors said.
    In selling AM General to LTV, American Motors agreed to
indemnify LTV against losses incurred by LTV resulting from the
Emerson Electric claims.
    AMC also said the award has not been confirmed by a court,
and faces additional legal challenges. It said that, because of
the LTV and Am General reorganizations, the final amount of a
confirmed award and the amount of any loss to LTV is uncertain.


.I 13780
.C
acq
.W
ANACOMP <AAC> GETS FUNDS TO BUY DATAGRAPHIX.
    INDIANAPOLIS, IND., March 23 - Anacomp Inc said it
finalized the financing of its 128 mln dlrs purchase of
DatagraphiX Inc from General Dynamics Corp <GD>.
    The financing, arranged by Drexel Burnham Lambert, consists
of 90 mln dlrs of bank financing, the private placement of 71
mln dlrs of senior subordinated notes and 25 mln dlrs of
convertible preferred stock, it said.
    DatagraphiX, a manufacturer of microgrpahics equipment has
been merged into Anacomp and will be operated as a separate
division, Anacomp said.  The division is expected to improve
results for Anacomp this year.


.I 13783
.C
earn
.W
SUPERMARKETS GENERAL CORP <SGL> 4TH QTR JAN 31.
    WOODBRIDGE, N.J., March 23 -
    Oper shr 50 cts vs 52 cts
    Oper net 19.2 mln vs 18.8 mln
    Sales 1.43 billion vs 1.30 billion
    Avg shrs 38.6 mln vs 36.0 mln
    Year
    Oper shr 1.65 dlrs vs 1.73 dlrs
    Oper net 62.7 mln vs 61.8 mln
    Sales 5.51 billion vs 4.96 billion
    Avg shrs 38.1 mln vs 35.8 mln
    NOTES: Sales are from continuing operations
    Operating net excludes results from discontinued operations
of nil vs profit 2,815,000 dlrs, or eight cts a share, in
quarter and loss 308,000 dlrs, or one cent a share, vs profit
1,880,000 dlrs, or five cts a share, in year
    Latest year operating net also excludes loss of 1,536,000
dlrs, or four cts a share, on disposal of discontinued
department store segment
    Share data adjusted to reflect two-for-one stock split paid
to holders of record August 1, 1986
    Operating net includes pre-tax LIFO credit 700,000 dlrs vs
credit 2.0 mln dlrs in quarter and charge 2.8 mln dlrs vs
charge 4.9 mln dlrs in year


.I 13785
.C
acq
.W
ENERGY FACTORS <EFAC> TO BUY ALLIED <ALD> UNITS.
    SAN DIEGO, March 23 - Energy Factors Inc said it has signed
an agreement to acquire GWF Power Systems Co and Combustion
Power Co Inc from Allied-Signal Inc for undisclosed terms.
    The two Allied units operate and are developing
cogeneration projects and small petroleum-coke fueled power
plants.


.I 13790
.C
earn
.W
RYLAND GROUP INC <RYL> SETS QUARTERLY.
    COLUMBIA, Md., March 23 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 30
    Record April 15


.I 13791
.C
earn
.W
H.B. FULLER CO <FULL> 1ST QTR FEB 28 NET.
    ST. PAUL, MINN., March 23 -
    Shr 38 cts vs 30 cts
    Net 3,649,000 vs 2,789,000
    Sales 137.4 mln vs 119.2 mln


.I 13794
.C
oilseed;wheat;grain;corn;cotton;trade;
.W
MARKET LOAN COULD BE PINNED TO U.S. TRADE BILL.
    BOCA RATON, Fla., March 23 - Sen. David Pryor, D-Ark., said
he was considering amending the Senate Finance Committee's
trade bill with a provision to require a marketing loan for
soybeans, corn and wheat.
    Pryor told the Futures Industry Association that there was
great reluctance among members of the Senate Agriculture
Committee to reopen the 1985 farm bill, and that a marketing
loan might have a better chance in the Finance panel.
    The Arkansas senator said the marketing loan -- which in
effect allows producers to pay back their crop loans at the
world price -- had led to a 300 pct increase in U.S. cotton
exports in 14 months and a 72 pct increase in rice exports.
    Pryor serves on both the Senate Finance and Agriculture
Committees.


.I 13796
.C
earn
.W
COOPER DEVELOPMENT CO <BUGS> 1ST QTR JAN 31 NET.
    PALO ALTO, Calif., March 23 -
    Shr profit seven cts vs loss 16 cts
    Net profit 2,144,000 vs loss 4,110,000
    Sales 121.3 mln vs 20.3 mln
    Avg shrs 29.4 mln vs 25.3 mln
    NOTE: Current year net includes pretax gain on sale of
product line of 11.4 mln dlrs and charge 4,711,000 dlrs posttax
on expensing of a portion of unamorized debt issuance costs of
unit.
    Current year results include Technicon Corp, acquired in
August 1986.


.I 13797
.C
earn
.W
CITIZENS GROWTH <CITGS> OMITS QUARTERLY DIVIDEND.
    JACKSON, Miss., March 20 - Citizens Growth Properties said
it ommitted its regular quartelry dividend as a result of
decreased earnings, principally attributable to the default by
a borrower of the trust's laargest mortgage loan.
    The trust last paid 12 cts on January 28.
    The trust said it also reaffirmed a limited share
repurchase program subject to available cash flow in light of
the defaulted mortgage.               


.I 13800
.C
acq
.W
******PATRICK PETROLUEM HAS DEFINITIVE ACCORD TO BUY BAYOU RESOURCES.
Blah blah blah.

.I 13807
.C
earn
.W
DYNAMIC HOMES INC <DYHM> 4TH QTR NET.
    DETROIT LAKES, MINN., March 23 -
    Shr profit 0.2 cts vs loss 2.2 cts
    Net profit 2,900 vs loss 43,500
    Sales 1,660,000 vs 950,000
    Year
    Shr loss 30 cts vs loss 37 cts
    Net loss 578,900 vs 713,300
    Sales 5,112,100 vs 3,659,600


.I 13808
.C
acq
.W
SAFEGUARD SCIENTIFIC <SFE> UNIT BUYS SUBSIDIARY.
    KING OF PRUSSIA, Pa., March 23 - Safeguard Scientific Inc
said its subsidiary, Coherent Communications Systems Corp,
purchased a telecommunications equipment business for an
undisclosed amount of cash, notes and Coherent common stock.
    Safeguard said it bought the business unit from Comsat
TeleSystems Inc, a subsidiary of Communications Satellite Corp
<CQ>.


.I 13809
.C
acq;crude;
.W
PATRICK PETROLEUM <PPC> TO BUY BAYOU.
    JACKSON, Mich., March 23 - Patrick Petroleum Co said it
signed a definitive agreement to buy Bayou Resources Inc.
    As previously announced, the transaction is valued at about
8.8 mln dlrs, including 2.8 mln dlrs in debt.
    Under the agreement, Patrick will pay six dlrs per share
for each Bayou share, with additional value being given for
Bayou's preferred and options. Bayou has 827,000 shares out.
    Depending upon the results of the re-evaluation of a
significant Bayou well as of Jan. 1, 1988, Bayou stockholders
may receive up to an additional two mln dlrs in stock and cash,
which has not been included in the 8.8 mln dlrs.


.I 13810
.C
earn
.W
WESTWORLD COMMUNITY HEALTH <WCHI> 4TH QTR LOSS.
    LAKE FOREST, Calif., March 23 -
    Shr loss 15.23 dlrs vs profit 12 cts
    Net loss 124,634,000 vs profit 882,000
    Revs 38.4 mln vs 41.0 mln
    Year
    Shr loss 15.46 dlrs vs profit 48 cts
    Net loss 126,434,000 vs profit 3,555,000
    Revs 187.0 mln vs 133.2 mln
    Avg shrs 8,177,000 vs 7,450,000
    Note: Current year results include charges related to
closing or divestitures of facilities and other assets.
    Full name Westworld Community Healthcare Inc.


.I 13812
.C
earn
.W
KINGS ROAD ENTERTAINMENT INC <KREN> 3RD QTR NET.
    LOS ANGELES, March 23 -
    Shr loss seven cts vs loss 64 cts
    Net loss 367,000 vs 3,009,000
    Revs 2,516,000 vs 8,787,000
    Avg shrs 4,941,000 vs 4,714,000
    Nine mths
    Shr loss 73 cts vs loss 1.17 dlrs
    Net loss 3,545,000 vs loss 4,573,000
    Revs 6,788,000 vs 13.3 mln
    Avg shrs 4,856,000 vs 3,908,000
    NOTE: Prior year net includes tax credits of 63,000 dlrs in
quarter and 1,395,000 dlrs in nine mths.


.I 13813
.C
earn
.W
PAYCHEX INC <PAYX> 3RD QTR FEB 28 NET.
    ROCHESTER, N.Y., March 23 -
    Shr 13 cts vs 10 cts
    Net 1,109,000 vs 875,000
    Revs 16.6 mln vs 13.2 mln
    Nine mths
    Shr 44 cts vs 33 cts
    Net 3,770,000 vs 2,851,000
    Revs 46.9 mln vs 36.9 mln
    NOTE: Share adjusted for three-for-two stock split in June
1986.


.I 13814
.C
acq
.W
IC INDS <ICX> TO SELL CERTAIN ASSETS TO MLX .
    CHICAGO, March 23 - IC Industries Inc said its Abex Corp
subsidiary agreed to sell its sintered friction materials
business in Italy to Troy, Michigan-based MLX Corp, for
undisclosed terms.  Completion of the proposed transaction is
subject to approval by the Italian government, it said.


.I 13815
.C
earn
.W
RELIABLE LIFE INSURANCE CO <RLIFA> YEAR NET.
    ST. LOUIS, March 23 -
    Shr 4.87 dlrs vs 2.21 dlrs
    Net 14.6 mln vs 6,639,540
    NOTE: 1986 net includes gain 2,578,887 dlrs from chjange in
accounting for pension plans and investment gaions of over
three mln dlrs.


.I 13817
.C
earn
.W
RAVEN INDUSTRIES INC <RAV> 4TH QTR JAN 31 NET.
    SIOUX FALLS, S.D., March 23 -
    Shr profit six cts vs loss nine cts
    Net profit 101,000 vs loss 142,000
    Sales 12.6 mln vs 8,736,000
    Year
    Shr profit 1.34 dlrs vs profit 1.02 dlrs
    Net profit 2,122,000 vs profit 1,611,000
    Sales 52.3 mln vs 41.9 mln


.I 13818
.C
earn
.W
HEMODYNAMICS INC <HMDY> YEAR LOSS.
    BOCA RATON, Fla., March 23 -
    Shr loss 24 cts vs loss 41 cts
    Net loss 148,070 vs loss 251,225
    Sales 1,298,257 vs 319,588


.I 13819
.C
acq
.W
DELOITTE HASKINS SELLS GETS STAKE IN COMPANY.
    NEW YORK, March 23 - <Deloitte Haskins and Sells>, an
accounting and consulting firm, said it bought a stake in
<Holland Systems Corp>, a software and services company.
    The company also said it set up a venture with Holland
Systems to develop and market an integrated line of information
management products and services.
    It said products from the venture are expected to be
introduced within the next year.


.I 13820
.C
money-fx;interest;
.W
FED EXPECTED TO SET CUSTOMER REPURCHASES.
    NEW YORK, March 23 - The Federal Reserve is expected to
intervene in the government securities market to add temporary
reserves indirectly via 1.5 to 2.5 billion dlrs of customer
repurchase agreements, economists said.
    They said that while the Fed has only a moderate add need
over the next few days, it will probably intervene in an
attempt to counteract an elevated federal funds rate.
    Fed funds, which averaged 6.09 pct on Friday, opened at
6-3/16 pct and remained at that level in early trading.


.I 13821
.C
earn
.W
MOTO PHOTO INC <MOTO> 4TH QTR NET.
    DAYTON, Ohio, March 23 -
    Oper shr profit one ct vs loss six cts
    Oper net profit 148,628 vs loss 249,192
    Revs 3,772,639 vs 1,101,633
    Avg shrs 5,235,233 vs 4,371,795
    Year
    Oper shr loss 10 cts vs loss 19 cts
    Oper net profit 5,760 vs loss 788,042
    Revs 9,899,038 vs 3,819,678
    Avg shrs 4,837,361 vs 4,163,006
    NOTE: Share after poreferred dividends.
    Current year net both periods excludes 15,000 dlr tax loss
carryforward.


.I 13823
.C
money-fx
.W
******U.S. TREASURY'S BAKER SAYS CURRENCIES WITHIN RANGES THAT BETTER REFLECT FUNDAMENTALS.
Blah blah blah.

.I 13827
.C
sugar
.W
GREECE SEEKING EC SUGAR NEXT MONTH AT TENDER.
    LONDON, March 23 - Greece will hold a buying tender on
April 8, for reply by April 10, for 40,000 tonnes of white
sugar from EC member countries, for delivery in four equal
tranches in May, June, July and August, traders said.


.I 13829
.C
zinc
.W
ZINC PRODUCERS APPROACH EC ON VOLUNTARY CLOSURES.
    BRUSSELS, March 23 - A number of individual zinc producing
companies have approached the European Commission to sound out
its reaction to a possible industry plan for a voluntary
reduction of smelting capacity, Commission sources said.
    The companies have been told that the Commission could not
judge whether a plan would be acceptable under European
Community, EC, competition rules until it had full details,
they said.
    In 1983, the industry drew up a plan envisaging the loss of
about 130,000 tonnes of annual capacity, or about 10 pct of the
total.
    However, the industry did not proceed with this plan as
zinc market conditions improved in 1984, the sources noted.
    They said the companies which approached the Commission
recently -- and which they did not name -- appeared to envisage
a loss of productive capacity similar to that proposed in 1983.


.I 13830
.C
money-fx
.W
CURRENCIES BETTER REFLECT FUNDAMENTALS - BAKER.
    MIAMI, March 23 - Treasury Secertary James Baker said
currencies were now within ranges that better reflected
economic fundamentals.
    In a speech to the annual meeting of the Inter-American
Development Bank, he said, "Excchange have moved into ranges
that better reflect economic fundamentals."
    He noted that in particular that dollar has fallen from its
high point in early 1985 helping to moderate protectionist
pressures in the U.S.


.I 13832
.C
earn
.W
TONKA <TKA> SEES LOWER FISCAL FIRST QUARTER NET.
    MINNETONKA, MINN., March 23 - Tonka Corp said it expects
results for its fiscal first quarter to end April four, to
decline from the record earnings of 3.8 mln dlrs or 57 cts a
share and revenues of 53.2 mln dlrs.
    The toy manufacturer attributed its anticipated lower
financial results to an an expected moderate decline in
shipments of its Pound Puppies product line.
    Tonka also said it expects revenues and earnings to remain
lower through the 1987 first half compared with 1986 record
results of 125.4 mln dlrs in revenues and 10.3 mln dlrs in net
earnings or 1.47 dlrs a share.
    The company said its level of shipments is good despite a
conservative buying pattern on the part of retailers industry
wide. Tonka's first quarter shipments will be down somewhat
from 1986 record levels and gross profit margins will be down
slightly from a year ago, it said.
    Second half sales are expected to be stronger based on a
return to a more traditional seasonal shipping pattern in which
retailers order and stock conservatively early in the year and
time large shipments for the second half, it said.
    Tonka said that while the pace of order writing is trailing
last year's, bookings are "very good" for orders on several of
its new product introductions for 1987.


.I 13834
.C
earn
.W
CHILD WORLD INC <CWLD> 4TH QTR JAN 31 NET.
    AVON, Mass., March 23 -
    Shr 1.34 dlrs vs 1.09 dlrs
    Net 15.4 mln vs 12.6 mln
    Sales 323.6 mln vs 240.2 mln
    Avg shrs 11.5 mln vs 11.5 mln
    Year
    Shr 95 cts vs 91 cts
    Net 10.9 mln vs 9,368,000
    Sales 628.8 mln vs 513.1 mln
    Avg shrs 11.5 mln vs 10.3 mln
    NOTE: Latest year net cut on mln dlrs by investment tax
credit loss.


.I 13835
.C
earn
.W
BAYERNVEREIN EXPECTS UNCHANGED DIVIDEND FOR 1987.
    MUNICH, March 23 - Bayerische Vereinsbank AG <BVMG.F>
expects to pay an unchanged dividend of 13 marks on 1987
earnings but profits will only barely reach last year's record
levels, management board spokesman Maximilian Hackl said.
    He told the annual news conference that possible credit
risks, especially those associated with foreign nations, had
largely been covered. Risk provisions in 1987 were therefore
unlikely to reach the same high level as in 1986.
    Group bank net profit rose to 275.52 mln marks in 1986 from
222.73 mln the previous year and parent bank net profit
increased to 187.63 mln marks from 161.58 mln.
    Hackl said that interest margins in the banking business
had declined to 2.71 pct last year from 2.78 pct the previous
year. But in the mortgage sector, the margins had increased
slightly and stood around 0.7 pct.
    Parent bank commission surplus in the securities business
had risen almost 15 pct to 358 mln marks in 1986.
    Expenses for personnel had increased 7.5 pct to 782 mln
marks and others costs had increased 9.4 pct to 272 mln marks.
    The parent bank's 1986 partial operating profit, which
excludes earnings from trading on its own account, had climbed
two pct to 671 mln marks.
    The parent bank's balance sheet total rose 5.3 pct to 81.5
billion marks at end-1986 compared with end-1985, Hackl said.
    It was boosted by a three billion mark rise in mortgage
business and a 1.1 billion mark increase in banking business.
    The mortgage sector's share in total parent bank business
volume rose to 46 pct from 45.
    Hackl said that in January and February this year, the
bank's credit business had not livened up. But despite the
sharp downturn on German bourses, profits from trading on own
account had increased in the first two 1987 months compared
with the same year-ago period. He gave no detailed figures.


.I 13838
.C
earn
.W
DYNAMIC HOMES INC <DYHM> 4TH QTR NET.
    DETROIT LAKES, Minn., March 23 -
    Shr nil vs loss two cts
    Net profit 2,900 vs loss 43,500
    Revs 1,660,300 vs 950,000
    12 mths
    Shr loss 30 cts vs loss 37 cts
    Net loss 578,900 vs loss 713,300
    Revs 5,112,100 vs 3,659,600


.I 13839
.C
earn
.W
<CANADA LEASE FINANCING LTD> 3RD QTR DEC 31 NET.
    Toronto, March 23 -
    Shr 30 cts vs 12 cts
    Net 727,000 vs 266,000
    Revs 27.8 mln vs 21.1 mln
    Nine mths
    Shr 59 cts vs 48 cts
    Net 1,355,000 vs 1,098,000
    Revs 69.4 mln vs 59.1 mln


.I 13840
.C
oilseed;ship;grain;
.W
ROTTERDAM GRAIN HANDLER SAYS PORT BALANCE ROSE.
    ROTTERDAM, March 23 - Graan Elevator Mij (GEM) said its
balance in port of grains, oilseeds and derivatives rose to
70,000 tonnes on March 21 compared with 10,000 a week earlier
after arrivals of 192,000 tonnes and discharges of 132,000
tonnes last week.
    The balance comprised 25,000 tonnes of grains plus oilseeds
and 45,000 tonnes of derivatives.
    This week's estimated arrivals total 487,000 tonnes, of
which 107,000 are grains/oilseeds and 380,000 derivatives.
    The figures cover around 95 pct of Rotterdam traffic in the
products concerned.


.I 13841
.C
earn
.W
PUBLIC SERVICE N.C. <PSNC> RAISES PAYOUT.
    GASTONIA, N.C., March 23 - Public Service Co of North
Carolina Inc said its board raised the quarterly dividend to 23
cts per share from 22-1/2 cts previously, as adjusted for a
two-for-one stock split that takes effect April 27.
    The dividend is payable July One to holders of record June
16.
    The company also said it plans to file soon for an offering
of  up to one mln new shares, which would give it a total of
about 8,850,000 post-split shares.


.I 13843
.C
earn
.W
WICKES <WIX> PLANS REVERSE SPLIT, CALLS DEBT.
    SANTA MONICA, Calif., March 23 - Wickes Cos Inc said its
board authorized a one-for-five reverse stock split and plans
to call the company's its 12 pct senior subordianted debentures
due 1994.
    The company said it will seek shareholder approval of the
reverse stock split at the annual shareholders meeting
scheduled for June 18.
    At January 31 Wickes had 239 mln shares outstanding, the
company also said.
    Wickes also said it will call the debentures on Dec 1,
1987, assuming market conditions remain essentially the same.


.I 13847
.C
cocoa
.W
******ICCO PUTS 1986/87 WORLD COCOA SURPLUS  94,000 TONNES VS 118,000 IN 1985/86 - DELEGATES.
Blah blah blah.

.I 13848
.C
acq
.W
INVESTOR ACQUIRES 9.9 PCT OF MUNFORD <MFD>.
    WASHINGTON, March 23 - A joint venture controlled by Dallas
investor Bradbury Dyer said it had acquired 377,000 shares, or
9.9 pct, of the common stock of Munford Inc.
    In a filing with the Securities and Exchange Commission,
the concern, which comprises Paragon Associates and Paragon
Associates II, said it bought the stake for 7,659,000 dlrs and
may buy more shares.
    Paragon said it bought the shares for investment purposes.


.I 13852
.C
gold
.W
BP <BP> UNIT TO BUILD GOLD EXTRACTION PLANT.
    DENVER, March 23 - Amselco Minerals Inc, a unit of British
Petroleum Co PLC, said it approved construction of a new plant
with Nerco Minerals Co to process carbon ore to recover
microscopic gold reserves.
    The plant, to be located at the Alligator Ridge Mine near
Ely, Nev., will process 1,000 tons a day of carbon-bearing ore
to recover 70,000 ounces of gold over three years, it said.
    The plant will use a chemical process called leaching to
extract the residual gold, which could not otherwise be
economically recovered. Operation of the plant, to be jointly
owned by Amselco and Nerco, is set to start in October.
    The Alligator Ridge Mine is jointly owned by Amselco and
Nerco, a unit of Nerco Inc <NER>, which is 90.5 pct owned by
Pacificorp <PPW>, a Portland, Ore., holding company.
    The mine has produced about 60,000 ounces of gold a year
since 1981 using another leaching process, a BP spokesman said.
The open pit oxide ore reserves of Alligator Ridge will be
exhausted by August 1987, as expected, when the work force will
be reduced to about 72 from 127, the company said.
    The employees remaining after that will operate the new
plant, it said.


.I 13855
.C
earn
.W
MOTO PHOTO <MOTO> SEES BETTER 1ST QUARTER 1987.
    DAYTON, Ohio, March 23 - Moto Photo Inc  president, Michael
Adler, said he expects the company's first quarter earnings for
fiscal 1987 to be better than the same quarter a year ago.
    Adler said, however, that the quarter would still be a
loss, primarily because it is the low season for the imaging
business.
    Photo Moto recored a net loss for the first quarter 1986
ending March 31 of 328,889 dlrs.
   


.I 13856
.C
earn
.W
CANADA SOUTHERN PETROLEUM LTD<CSW> 2ND QTR LOSS.
    CALGARY, Alberta - Qtr ends Dec 31
    Shr loss one ct vs profit two cts
    Net loss 52,922 vs profit 220,041
    Revs 481,832 vs 824,554
    Six mths
    Shr loss one ct vs profit four cts
    Net loss 104,129 vs profit 345,515
    Revs 934,685 vs 1,465,153


.I 13858
.C
earn
.W
RECOTON CORP <RCOT> 4TH QTR LOSS.
    LONG ISLAND CITY, N.Y., March 23 -
    Shr loss 14 cts vs profit 26 cts
    Net loss 384,000 vs profit 714,000
    Revs 8,367,000 vs 9,909,000
    Year
    Shr profit 19 cts vs profit 57 cts
    Net profit 518,000 vs profit 1,547,000
    Revs 28.7 mln vs 26.7 mln
    NOTE: Includes income tax credits of 302,000 dlrs and 1.3
mln dlrs in 1986 and 1985, respectively, and 602,000 dlrs in
1985 qtr. Current qtr after tax provision of 452,000 dlrs.


.I 13859
.C
earn
.W
SANFORD CORP <SANF> 1ST QTR FEB 28 NET.
    BELLWOOD, Ill., March 23 -
    Shr 28 cts vs 13 cts
    Net 1,898,000 vs 892,000
    Sales 16.8 mln vs 15.3 mln


.I 13860
.C
earn
.W
<CANADA SOUTHERN PETROLEUM LTD> 2ND QTR LOSS.
    CALGARY, Alberta, March 23 -
    Period ended December 31, 1986
    Shr loss one ct vs profit two cts
    Net loss 52,922 vs profit 220,041
    Revs 481,832 vs 824,554
    Six mths
    Shr loss one ct vs profit four cts
    Net loss 104,129 vs profit 345,515
    Revs 937,685 vs 1,460,000


.I 13861
.C
earn
.W
HOSPOSABLE PRODUCTS INC <HOSP> 4TH QTR NET.
    BOUND BROOK, N.J., March 23 -
    Shr 12 cts vs eight cts
    Net 102,002 vs 59,396
    Sales 3,024,423 vs 2,437,489
    Avg shrs 1,032,000 vs 746,004
    Year
    Shr 64 cts vs 45 cts
    Net 570,491 vs 340,852
    Sales 11.1 mln vs 10.6 mln
    Avg shrs 1,032,000 vs 753,948


.I 13863
.C
iron-steel
.W
BANGEMANN DENIES NEWSPAPER INTERVIEW ON SUBSIDIES.
    BONN, March 23 - The West German Economics Minister today
denied giving a newspaper interview which quoted him as saying
the state could not continue to pour money into the country's
ailing steel and coal industries.
    Economics Ministry spokesman Dieter Vogel said in a
statement Bangemann had contacted him from New Zealand, where
he is attending a General Agreement on Trade and Tariffs (GATT)
ministerial meeting, to deny giving the interview to the
conservative daily Die Welt. The paper quoted Bangemann as
saying that continued subsidies would endanger other parts of
the German economy by making them uncompetitive.
    Vogel said Bangemann had pledged that everything possible
would be done to minimize the effects of reduced coal and steel
production on the workforces and regions concerned.
    Die Welt said the interview with Bangemann had taken place
at a meeting of his Free Democratic Party (FDP) in Darmstadt
last Friday, adding that it had a tape recording of his
comments which it would publish tomorrow.


.I 13864
.C
interest
.W
******FED SAYS IT SETS 1.5 BILLION DLRS OF CUSTOMER REPURCHASE AGREEMENTS.
Blah blah blah.

.I 13865
.C
interest
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 23 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-3/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 13868
.C
gnp
.W
SWEDISH GNP ROSE LESS THAN EXPECTED, FIGURES SHOW.
    STOCKHOLM, March 23 - Sweden's Gross National Product rose
1.3 pct last year against 2.3 pct in 1985, mainly due to a
lower than forecast growth in exports and a sharp fall in total
investments, the Central Bureau of Statistics reported.
    Private consumption rose 4.1 pct during 1986 against 2.7
pct in 1985 whereas the Finance Ministry had expected an
increase of only 3.6 pct. Total investments fell 0.7 pct
against a rise of 6.3 pct in 1985. The Finance Ministry had
forecast a rise of 0.3 pct in 1986.
    Exports rose 2.1 pct last year against 2.3 pct in 1985, but
the Finance Ministry had predicted a growth of 2.8 pct.


.I 13870
.C
earn
.W
MCDONALD'S <MCD> UP ON REAFFIRMED RECOMMENDATION.
    NEW YORK, MARCH 23 - McDonald's Corp rose sharply today
after receiving a second recommendation in as many sessions,
traders said.
    Today, analyst Richard Simon of Goldman Sachs and Co
reaffirmed his recommendation of the stock and put it on his
"focus list," traders familiar with the recommendation said.
    Simon was unavailable for comment.
    The stock jumped 2-3/4 to 79-7/8.
    On Friday, analyst Daniel Lee of Drexel Burnham Lambert Inc
reiterated a recommendation of the stock focusing on increased
comparable store sales and consistent annual earnings growth.
Friday, the stock closed 1-5/8 points higher.
    Wendy's, another operator of fast food restaurants, rose
one to 12-3/4 in active trading. Vague rumors that Wendy's is a
takeover candidate continued to circulate Wall Street, traders
said.


.I 13871
.C
earn
.W
ALLIED PRODUCTS CORP <ADP> YEAR NET.
    CHICAGO, March 23 -
    Shr 3.36 dlrs vs 3.33 dlrs
    Net 16,173,000 vs 10,603,000
    Sales 420.8 mln vs 276.1 mln
    Avg shrs 4.4 mln vs 3.2 mln
    NOTE: 1985 net includes tax credits of 6.9 mln dlrs or 2.19
dlrs a share.


.I 13872
.C
acq
.W
AMERICAN TELEVISION <ATCMA> BUYS TIME <TL> UNIT.
    ENGLEWOOD, Colo., March 23 - American Television and
Communications Corp said it has completed the acquisition of
Manhattan Cable Television Inc from Time Inc for about
9,400,000 Class B common shares.
    American Television was spun off from Time in August 1986.
The company said following this transaction, Time now owns 82
pct of American Television.


.I 13874
.C
acq
.W
DWG <DWG> COMPLETES SALE OF UNIT.
    MIAMI, March 23 - DWG Corp said it has completed the
previously-announced sale of its Texsun Corp subsidiary to
Texsun Corp subsidiary to Sundor Brands Inc for 27.5 mln dlrs
and the assumption of liabilities.
    It said proceeds have been placed in escrow pending the
outcome of talks with lenders.


.I 13876
.C
acq
.W
ALLIED <ASU> SELLING MICHIGAN UNITS.
    DETROIT, March 23 - Allied Supermarkets Inc said it entered
into a definitive agreement to sell its Michigan operations for
about 46 mln dlrs in cash and debt plus assumption of
substantially all of Allied's liabilities other than senior
subordinated debentures.
    It said the operations will be sold to Meadowdale Foods
Inc, a corporation formed by members of its existing
management, including Chairman David Page and President Lon
Makanoff.
    The transaction is conditioned on  Allied's pending merger
with the Vons Cos Inc.


.I 13880
.C
acq
.W
KLM SAYS IT IS NOT SEEKING AIR ATLANTA STAKE.
    AMSTERDAM, March 23 - KLM Royal Dutch Airlines <KLM.AS> is
discussing marketing cooperation with U.S. regional carrier Air
Atlanta Inc but it is not seeking to take a stake in the
airline, a KLM spokesman said.
    "We're not considering taking either a majority or minority
stake in Air Atlanta, but we are thinking of providing them
with a loan," the spokesman told Reuters in a comment on a Wall
Street Journal report saying debt-laden Air Atlanta could sell
as much as 25 pct of its stock to the Dutch airline.
    KLM last week denied a Dutch press report saying it was
discussing a takeover of Air Atlanta.
    The KLM spokesman said Air Atlanta's regional route
network, centred on Atlanta, Ga, could serve as a feeder to
KLM's international network, which includes direct flights
between Atlanta and Amsterdam.
    KLM and Air Atlanta had been talking "for some time," he
said, but declined to elaborate further on the talks or give
details of the loan to Air Atlanta.


.I 13882
.C
acq
.W
GENCORP SUES GENERAL PARTNERS.
    AKRON, OHIO, March 23 - Gencorp Inc said it filed suit
against the unsolicited 100 dlr-a-share tender offer of Wagner
and Brown and AFG INdustries.
    Gencorp said it is seeking an injunction against the offer
because it is violates federal securities laws and margin
regulations.
    Gencorp also said its board is carefully studying the offer
and will make a decision on whether or not shareholders should
accept or reject it by March 31.


.I 13884
.C
ipi
.W
IRISH INDUSTRIAL PRODUCTION INDEX UP 6.2 PCT.
    DUBLIN, March 23 - Ireland's industrial production index
stood at 132.8 in December, a year-on-year rise of 6.2 pct, the
Central Statistics Bureau reported.
    In November the index, base 1980, stood at 144.8, showing a
rise of 4.3 pct on a year-on-year basis.


.I 13885
.C
earn
.W
NEW BRUNSWICK SCIENTIFIC CO INC <NBSC> 4TH QTR.
    EDISON, N.J., March 23 -
    Shr 22 cts vs six cts
    Net 819,000 vs 201,000
    Revs 9.3 mln vs 7.7 mln
    Year
    Shr 40 cts vs 20 cts
    Net 1.5 mln vs 728,000
    Revs 31.5 mln vs 26.6 mln


.I 13887
.C
earn
.W
INTELLIGENT BUSINESS <IBCC> 1ST QTR JAN 31.
    HAUPPAUGE, N.Y., March 23 -
    Shr three cts vs nil
    Net 328,112 vs 6,374
    Revs 1,401,155 vs 846,253
    NOTE: Full name is Intelligent Business Communications Corp


.I 13888
.C
acq
.W
PRINCIPAL NEO-TECH SELLS UNIT.
    TORONTO, March 23 - <Principal Neo-Tech Inc> said it
completed the sale of its subsidiary, Neo-Tech Inc, to Seismic
Holdings Inc and Energy Holdings Inc, of Denver, Colo.
    As part of the price, Principal Neo-Tech received notes and
preferred shares of Energy Holdings. However, terms were not
disclosed.


.I 13889
.C
acq
.W
******CHARTER FEDERAL, JEFFERSON SAVINGS AGREE TO MERGE.
Blah blah blah.

.I 13891
.C
acq
.W
PHH <PHH> BUYS TWO DESIGN FIRMS.
    HUNT VALLEY, MD, March 23 - PHH Group Inc said it acquired
two design firms for undisclosed terms.
    In 1986, the two firms, Neville Lewis Associates of New
York and Walker Associates Inc of L.A., produced 15.6 mln dlrs
in total fees.


.I 13894
.C
acq
.W
CHARTER FEDERAL <CHFD>, JEFFERSON TO MERGE.
    BRISTOL, Va, March 23 - Charter Federal Savings and Loan
Association of Bristol, Va., said it has agreed to acquire
Jefferson Savings and Loan Association of Warrenton, Va.
    Under terms of the transaction, which would result in a 1.3
billion dlr thrift institution, stockholders of Jefferson will
get 30.50 dlrs per share, half in cash and half in shares of
Charter.
    The resulting association will operate under the name of
Charter and will be based in Bristol.
    The transaction is valued at about 16.3 mln dlrs, a
Jefferson spokesman said.
    Charter said the merger is subject to approval of the
Federal Home Loan Bank Board.
    Jefferson reported a 1.5 mln dlrs loss and assets of 360
mln dlrs for the year ended September 30, 1986.
    For the year ended June 30, Charter reported net income of
7.9 mln dlrs. Assets totaled about 844.0 mln dlrs as of
December 31.


.I 13895
.C
grain
.W
TRADE PROPOSES NEW EC GRAIN INTERVENTION RULES.
    BRUSSELS, March 23 - The European Community (EC) cereals
trade lobby organisation Coceral said it has written to EC Farm
Commissioner Frans Andriessen to propose a new system for sales
into intervention, which it claims could save the EC budget
money.
    It proposes that applications for intervention be made
through a certificate valid for execution three months later.
If during the three months the trader found a market elsewhere,
he could buy back the certificate on payment of a one pct
premium.
    Coceral argues that this would restore the original
function of intervention as a safety net and would end the
present situation in which produce is often sold into
intervention as a precaution.


.I 13899
.C
earn
.W
LOWE'S COS INC <LOW> QTLY DIV.
    NORTH WILKESBORO, N.C., March 23 -
    Qtly div 10 cts vs 10 cts prior
    Payable April 30
    Record April 10


.I 13907
.C
acq
.W
******COCA COLA SPOKESMAN SAID RUMORS COKE SEEKING TAKEOVER OF WENDY'S ARE NOT CORRECT.
Blah blah blah.

.I 13909
.C
earn
.W
COMPUTER DEVICES INC 4TH QTR.
    NUTTING LAKE, Mass, March 23 -
    Shr loss one cnt vs profit one cnt
    Net loss 35,000 vs profit 42,000
    Revs 881,000 vs 1.3 mln
    Year
    Shr profit seven cts vs profit nine cts
    Net profit 291,000 vs profit 366,000
    Revs 4.4 mln vs 5.9 mln
    NOTE:1985 4th qtr and year includes gain of 7,000 dlrs and
147,000 dlrs respectivley. 1986 year includes gain of 35,000
dlrs from tax loss carryforwards.


.I 13912
.C
earn
.W
DUCOMMON INC <DCO> 4TH QTR LOSS.
    CYPRESS, Calif., March 23 -
    Oper shr loss 5.60 dlrs vs loss 1.10 dlrs
    Oper net loss 18,688,000 vs loss 3,662,000
    Sales 107.3 mln vs 108.7 mln
    Year
    Oper shr loss 5.76 dlrs vs loss 98 cts
    Oper net loss 19,213,000 vs loss 3,263,000
    Sales 455.2 mln vs 417.0 mln
    Note: Prior qtr and year figures exclude losses from
discontinued operations of 279,000 dlrs and 555,000 dlrs,
respectively and respective losses on sale of discontinued
operations of 14.6 mln dlrs and 15.9 mln dlrs.


.I 13915
.C
earn
.W
MEM COM INC <MEM> 4TH QTR NET.
    NORTHVALE, N.J., March 23 -
    Oper shr 93 cts vs 32 cts
    Oper net 2,443,810 vs 847,609
    Revs 30.3 mln vs 21.0 mln
    12 mths
    Oper shr 1.16 dlrs vs 85 cts
    Oper net 3,066,407 vs 2,250,781
    Revs 70.9 mln vs 61.8 mln
    NOTE: qtr 1985 excludes gain 96,327 dlrs for discontinued
operations of Lebanon Packaging.
    Year 1986 and year prior excludes loss 62,216 dlrs, and
gain 281,367 dlrs, respectively, for discontinued operations on
Lebanon sale.


.I 13917
.C
acq
.W
COCA COLA <KO> SAYS RUMORS INCORRECT.
    NEW YORK, March 23 - A Coca Cola Co spokesman said rumors
the company is interested in acquiring Wendy's International
<WEN> are not true.
    "Those rumors are not correct," said Carlton Curtis, an
assistant vice president at Coke. "We have stated many times
that Coca Cola Co has no interest in an acquisition in the food
service industry and thereby becoming a competitor to our food
service customers."
    Wendy's stock has been flying high on the rumors for two
days. Today, Wendy's hit a high of 13-3/8 before dropping back
to 12-3/8, up 5/8 in heavy trading.


.I 13920
.C
earn
.W
SWEET VICTORY INC <SVIC> YEAR.
    NEW YORK, March 23 -
    Shr loss 1.16 dlrs vs loss 61 cts
    Net loss 3.5 mln vs loss 1.3 mln
    Revs 943,938 dlrs vs 480,333 dlrs


.I 13921
.C
grain;corn;
.W
PORTUGUESE GRAIN AGENCY BAN OPPOSED BY MINISTER.
    LISBON, March 23 - Portugal's Agriculture Minister Alvaro
Barreto said he disagreed with a court order barring the state
grain buying agency EPAC from taking part in cereals import
tenders open to private traders.
    Barreto told reporters his aim was to have EPAC readmitted
to the tenders.
    Under the terms of Portugal's January 1986 accession to the
European Community (EC), a grain import monopoly held by EPAC
(Empresa Publica de Abastecimento de Cereais) is being reduced
by 20 pct annually until all imports are liberalised in 1990.
    Following legal proceedings by private importers, Lisbon's
civil court decided in a preliminary ruling earlier this month
that EPAC should not be allowed to take part, as it had done,
in tenders for the liberalised share of annual grain imports.
    As a result of this ruling, EPAC was excluded from a March
12 tender for the import of 80,000 tonnes of maize.
    Barreto said, "My objective is put EPAC into the tenders
because it has a right to take part." He added the government
would be studying the court order to see whether or not the
ruling could stop EPAC from participating in future tenders.
    Barreto said there was no reason to exclude any operator,
whether public or private, from the tenders. Private traders
had argued that EPAC, given its dominant position in the
Portuguese grain market, had an unfair advantage over them.
    "There is no reason to make EPAC a martyr of the system,"
Barreto said. He said the EC's executive commission had
accepted the government's view that EPAC should be eligible.
    The Lisbon court ruling stated that EPAC's participation in
the public tenders was unfair competition and violated the
clauses of Portugal's EC accession treaty dealing with the
gradual dismantling of the state agency's import monopoly.


.I 13922
.C
interest
.W
STANDARD FEDERAL <SFB> OFFERS ZERO-POINT LOAN.
    TROY, Mich, March 23 - Standard Federal Bank said it
introduced a zero-point fixed rate mortgage loan.
    The loan program offers borrowers home mortgage financing
with no discount fees charged.
    Standard said that fees charged will include an application
fee, commitment fee and out-of-pocket expenses such as title
work, survey, recording fees and private mortgage insurance.
    


.I 13923
.C
crude
.W
******IRAQ OIL MINISTER QASSEM AHMED TAQI REPLACED, IRAQI NEWS AGENCY REPORTS.
Blah blah blah.

.I 13926
.C
crude
.W
IRAQI OIL MINISTER REPLACED - OFFICIAL.
    BAGHDAD, March 23 - Iraq's Oil Minister Qassem Ahmed Taqi
has been moved to the Heavy Industries ministry, the official
Iraqi news agcny INA said tonight.
    It quoted a Presidential decree appointing Oil Ministry
undersecretary Isam Abdul-Rahim Al-Chalaby as the new Oil
Minister.
    The Ministers of Industry and Communication and Transport
had both been relieved of their posts, the news agency said.
    No immediate explanation was given for the changes.
    Al-Chalaby is the head of the Iraqi National Oil Company.
    INA said the decree, signed by President Saddam Hussein,
relieved the Minister of Heavy Industries, Subhi Yassin Khadeir
of his post and appointed him a Presidential adviser.
    His ministry was formerly known as the Industry and Mineral
Resources Ministry. The Minister of Communications and
Transport, Abdel-Jabbar Abdel-Rahim al-Asadi was also relieved
of his post and replaced by a member of the ruling Baath party
regional command, Mohammed Hamza al-Zubeidi. Al-Zubedei is also
a Presidential adviser. All three ministers involved in the
reshuffle had spent more than four years in their posts.


.I 13927
.C
acq
.W
ALLEGHENY <AI> SUED OVER PROPOSED BUYOUT.
    PITTSBURGH, March 23 - Allegheny International Inc said it
and First Boston Inc's <FBC> Sunter Holdings Corp subsidiary
have been named as defendants in a class action filed in the
Court of Common Pleas for Allegheny County, Pa., which seeks an
injunction against Allegheny's proposed merger into Sunter.
    The company said its board and some former directors and
First Boston were also named as defendants.
    It said it and Sunter intend to vigorously oppose the
action.
    Allegheny said the class action suit alleges the price to
be paid in the transaction is grossly unfair. The company said
the suit's allegations are similar to those contained in an
earlier federal court suit.


.I 13928
.C
earn
.W
ASTROCOM CORP <ACOM> 4TH QTR NET.
    ST. PAUL, March 23 -
    Shr one ct vs five cts
    Net 19,174 vs 118,671
    Revs 3,127,162 vs 2,936,330
    Year
    Shr eight cts vs 30 cts
    Net 198,290 vs 712,087
    Revs 12.4 mln vs 11.6 mln
    Avg shrs 2,603,588 vs 2,376,604


.I 13930
.C
earn
.W
JUNO LIGHTING INC <JUNO> 1ST QTR FEB 28 NET.
    DES PLAINES, ILL., March 23 -
    Shr 43 cts vs 32 cts
    Net 1,991,000 vs 1,485,000
    Sales 11.7 mln vs 9,479,000


.I 13934
.C
wheat;grain;cotton;rice;
.W
U.S. FARM POLICY DEBATE COULD HIT SENATE SOON.
    WASHINGTON, March 23 - The Senate this week might take up
proposed legislation that could serve as a lightning rod to
expose broad initiatives to change U.S. farm policy.
    The Senate could consider a House-passed bill that would
allow wheat and feedgrains farmers to receive at least 92 pct
of their income support payments if flooding last year
prevented, or will prevent, them from planting their 1987
crops, Senate staff members told Reuters.
    Also pending is a bill extend the life of the National
Commission on Dairy Policy.
    Sen. Rudy Boschwitz, R-Minn., intends to offer an amendment
to one of the bills that would suspend the minimum planting
requirement for all 1987 wheat, feedgrain, cotton and rice
producers, an aide said.
    Under current law, producers must plant at least 50 pct of
their base acreage to be eligible for 92 pct of their
deficiency payments.
    Most major U.S. farm groups have lobbied hard against
making any fundamental changes in the 1985 farm bill out of
fear a full-scale debate could expose agricultural problems to
budget-cutting pressures.
    Representatives of these farm groups have said they also
fear efforts by Midwestern Democrats to force a floor vote on a
bill that would require large acreage set-asides in return for
sharply higher support prices.
    However, Sen. Tom Harkin, D-Iowa, sponsor of the bill, told
Reuters he did not intend to offer his measure as a floor
amendment but to bring it through the committee.


.I 13936
.C
tin
.W
TIN PACT SPECIAL SESSION THIS WEEK ROUTINE.
    LONDON, March 23 - A further special session of the
International Tin Council, ITC, held here tomorrow, March 24,
will give member countries an update on the latest debate over
the hundreds of millions of sterling lost when its buffer stock
price support scheme failed in October 1985, delegates said.
    But the ITC quarterly session scheduled for April 8-9 will
be important, as the council will by then be wanting to decide
on whether the current pact should be extended beyond June 30
or just allowed to expire, delegates said. A two year extension
is possible.


.I 13937
.C
tin
.W
TIN COUNCIL WINDING-UP VERDICT APPEALED.
    LONDON, March 23 - Amalgamated Metal Trading, AMT, today
lodged an appeal against the ruling which prevented its
petition to wind up the International Tin Council, ITC.
    The verdict was given by Mr Justice Millett on January 22,
when AMT led an effort by ITC creditors to recover sums claimed
by banks and London Metal Exchange brokers as a result of the
collapse of the ITC's buffer stock operations in October 1985.
AMT had until March 26 to lodge its appeal.
    The grounds for the appeal are that the judge erred on
three points when giving his verdict, Michael Arnold, head of
the broker creditors group Tinco Realisations, told Reuters.
    The judge ruled that the U.K. Court had no jurisdiction to
wind up the Tin Council, that the ITC was not an association
within the meaning of the Companies Act, and that the
winding-up petition was not a proceeding in respect of an
arbitration award. AMT will contest all three points.
    The U.K. Companies Act allows the possibility of the
winding-up of what it defines as an association, and AMT will
argue that the Tin Council falls within this definition, Arnold
said.
    The ITC has immunity except for the enforcement of an
arbitration award, and thus it is important for AMT that the
court accepts that the winding-up petition represents a move to
enforce an arbitration ruling.
    The court originally decided that the winding-up petition
went wider than the enforcement of such a debt, an AMT
spokesman said.
    The appeal is unlikely to be heard for several months, but
a case brought by fellow ITC creditor Maclaine Watson is to be
heard on April 28. This is a move by the metal broker to have a
receiver appointed over the ITC's assets.
    Since similar arguments will be used in this case, it is
possible that any appeal in the Maclaine Watson case could be
consolidated with AMT's appeal, Arnold said.
    Other ITC creditors have brought direct actions against the
Council's member states and an application by the governments
to strike out the first of these, brought by J.H. Rayner
(Mincing Lane) Ltd, is to be heard on May 11.
    Shearson Lehman Brothers action against the LME's tin
"ring-out" in March 1986 is also scheduled to be heard in the
near future. The hearing date has now been put back slightly to
June 8.


.I 13942
.C
ship;crude;
.W
U.S. PREPARED TO ESCORT KUWAITI TANKERS.
    By CHARLES ALDINGER, Reuters
    WASHINGTON, March 23 - The United States has offered Navy
warships to escort Kuwaiti oil tankers into and out of the 
Gulf where they could be threatened by new Iranian anti-ship
missiles, U.S. defense officials said today.
    "We believe the Kuwaitis have also approached the Soviet
Union about the possibility of using Soviet tankers" to ship
their oil, one of the officials told Reuters. "But if there is
superpower protection, we would rather it come from us," the
official said.
    The officials, who asked not to be identified, said Kuwait
had asked about possible protection for a dozen vessels, most
of them oil tankers, which could be supplied by three U.S. Navy
guided missile destroyers and two guided missile frigates now
in the southern part of the Gulf.
    "We told them we would give them help and we are waiting to
hear the Kuwaiti response to our offer," one official said.
    In addition to a half dozen ships in the U.S. Navy's small
Mideast Task Force near the Straits of Hormuz, the Pentagon has
moved 18 warships -- including the Aircraft Carrier Kitty Hawk
-- into the northern Indian Ocean in the past month.
    White House and defense officials said today that massing
of the fleet was routine and had nothing to do with the
Iran-Iraq war or Iran's recent stationing of Chinese-made 
anti-ship missiles near the mouth of the Gulf.
    The land-based missiles have increased concern in Kuwait
and other Middle East countries that their oil shipments might
be affected. Several hundred vessels have been confirmed hit in
the  Gulf by Iran and Iraq since early 1984. White House
spokesman Marlin Fitzwater told reporters today that it was in
the U.S. strategic interest to keep the free flow of oil in the
gulf and through the Straits of Hormuz.
    But he said U.S. ships in the region were on routine
maneuvers.
    Defense Secretary Caspar Weinberger on Sunday declined to
discuss specifics, but said the United States would do whatever
was necessary to keep the Gulf shipping open in the face of new
Iranian anti-ship missiles in the region.
    "We are fully prepared to do what's necessary to keep the
shipping going and keep the freedom of navigation available in
that very vital waterway of the world," he said on NBC
television's "Meet the Press."
    The State Department said Friday Iran has been informed
about U.S. concern over the threat to oil shipments in the
Gulf. The communciation was sent through Switzerland, which
represents American interests in Iran.
     Iran on Sunday denied as baseless reports that it intended
to threaten shipping in the gulf and warned the United States
that any interference in the region would meet a strong
response from Tehran, Tehran Radio said.
    An Iranian Foreign Ministry spokesman, quoted in a
broadcast monitored by the BBC in London, said reports that
Iran intends to threaten shipping in the Gulf were baseless.
    "In conjunction with this misleading propaganda, America has
already paved the ground to achieve its expansionist and
hegemonistic intentions, aiming to build up its military
presence in the region," he was quoted as saying.


.I 13943
.C
lumber
.W
TIMBER REALIZATION <TRX> TO SELL REMAINING ACRES.
    CHICAGO, Ill., March 23 - Timber Realization Co said it has
agreed to sell its remaining 50,000 acres of timberland
property in Mississippi for about 11.3 mln dlrs in cash.
    Timber Realization, a limited partnership formed to dispose
of timberlands and related properties transferred to it by the
<Masonite Corp>, said that when this sale is completed the
partnership will have received about 15.2 mln dlrs in cash and
notes from the sale of its properties since December 23, 1986.
    The partnership said it will terminate before August 3,
1987.
    Prior to that date, the partnership said it expects to form
a liquidating trust to provide for unresolved claims and
liablities.
    Timber Realization said the amount retained in that trust
will depend on its experience in resolving open items up to the
termination date, but it added it expects to retain a
substantial amount in the trust.
    The partnership said it anticipates making a cash
distribution of an as yet undetermined amount to unitholders at
or before the liquidation trust's funding date.
   


.I 13945
.C
earn
.W
PIONEER SYSTEMS INC <PAE> YEAR NOV 29 LOSS.
    NEW YORK, March 23 -
    Oper shr loss five cts vs loss 1.28 dlrs
    Oper net loss 155,000 vs loss 3,982,000
    Sales 37.1 mln vs 34.2 mln
    NOTE: Net excludes losses from discontinued fabric
finishing operations of 3,431,000 dlrs vs 5,910,000 dlrs.


.I 13946
.C
earn
.W
AMERICAN SHARED HOSPITAL SERVICES <AMSH> YEAR.
    SAN FRANCISCO, March 23 - Period ended December 31.
    Shr profit 11 cts vs loss 24 cts
    Net profit 224,271 vs loss 511,349
    Revs 7,258,688 vs 7,200,349


.I 13947
.C
earn
.W
GEO. A. HORMEL AND CO <HRL> .
    AUSTIN, MINN., March 23 -
    Qtly div 15 cts vs 15 cts previously
    Pay May 15
    Record April 18


.I 13948
.C
tin
.W
BOLIVIA'S TOP UNION LEADER JOINS MINERS FAST.
    LA PAZ, March 23 - Bolivia's top union leader today joined
a hunger strike by 1,300 state employed miners and workers to
press for higher wages he said.
    Juan Lechin Oquendo, the veteran secretary general of the
Bolivian Labour Organization, COB, told reporters: "I am
joining the fast to abide with our call for a hunger strike".
    Lechin, 83, became one of 12 COB leaders to join a hunger
strike to protest against the austerity programme of the
government of president Victor Paz Estenssoro.
    The striking leader began his fast as leaders of 9,000
miners employed by the state corporation COMIBOL were due to
star negotiations on ways to solve their conflict over pay.
    About 1,300 miners and workers entered today their fourth
day of fast in union offices and Roman Catholic churches to
press for a substantial hike in Bolivia's minimum monthly wage,
which is 40 bolivianos (about 20 dlrs), COB leader Walter
Degadillo said.
    "I will take part in the miners' negotiations because that
does not force me to suspend my fast," Lechin told reporters.
    The COMIBOL miners' strike entered its fifth day to press
for higher wages and more funds for the mining nationalised
industry.
    About 20,000 miners, or two-thirds of the working force,
have been laid off through the government's decision to
streamline the deficit-ridden state corporation following a
collapse in the international tin price.
    The government, faced with mounting social unrest against
its economic policies, has called the miners' strike and fasts
part of a campaign aimed at discrediting it during the visit of
West German president Richard von Weizsaecker, who began a
four-day visit last Friday.
    "I regret not being able to attend an invitation by
president Weizsaecker to a dinner tonight because I am on a
hunger strike," Lechin told reporters. "I also have to orga-
nise the strike."
    Weizsaecker is hosting a dinner tonight for Paz Estenssoro
and had invited both Lechin and Victor Lopez, the miners'
federation top leader. Although lopez has not joined the fast,
union sources said its unlikely he would attend the dinner.


.I 13949
.C
acq
.W
TWO U.S. BANCORP <USBC> UNITS MERGE.
    PORTLAND, Ore., March 23 - U.S. Bancorp's Pacific State
Bank of Lincoln City said it plans to merge with U.S. Bancorp's
U.S. National Bank of Oregon.
    Under the pact, Pacific State will become part of the U.S.
Bank branch system.
    The company said the merger is expected to be completed
after mid-year, following regulatory approval.
    All local staff and management will remain the same, it
said.


.I 13950
.C
acq
.W
******MTS ACQUISITION HAS NEGLIGIBLE NUMBER OF CAESARS WORLD SHARES.
Blah blah blah.

.I 13951
.C
acq
.W
WOLVERINE <WWW> TO SELL TWO SUBSIDIARIES.
    ROCKFORD, MICH., March 23 - Wolverine World Wide Inc said
it signed a letter of intent to sell to an investment group two
subsidiaries, Kaepa Inc, an athletic footwear maker, and its
international marketing arm, Kara International Inc.
    Terms were not disclosed.
    Wolverine said the action continues the restructuring
operation begun last July to make the company more competitive
and profitable. Wolverine said it will concentrate its effort
in the athletic footwear market in its Brooks footwear
division.
    Wolverine said it expects "favorable results in the second
half as a result" of its restructuring. In 1986 it said
restructuring helped improve its financial capabilities.
    The company reported a 12.6 mln dlr loss, or 1.75 dlrs a
share, in 1986 due largely to a 9.0 mln dlr restructuring
charge and a 4.0 mln dlr inventory evaluation readjustment
taken in the second quarter.
    Since that time, it has sold two small retail operations,
closed and consolidated five domestic footwear factories and
closed about 15 retail locations.


.I 13953
.C
acq
.W
PACIFICARE <PHSY> IN TALKS TO ACQUIRE HMO.
    CYPRESS, Calif., March 23 - PacifiCare Health Systems Inc
said it is in negotiations to acquire Capital Health Care, a
40,000 member health maintenance organization servicing Salem
and Corvallis, Ore.
    The company said it will not disclose terms or other
details of the acquisition until negotiations are completed.



.I 13954
.C
acq
.W
******MTS ACQUISITION HAD TALKS WITH PRATT HOTEL, SOUTHMARK ON CAESARS WORLD PURCHASE.
Blah blah blah.

.I 13956
.C
earn
.W
INITIALS PLUS <IINC> SEES SHARP SALES INCREASE.
    NEW YORK, March 23 - Initials Plus said it expects sales in
the year ending January 31, 1988 to exceed 10 mln dlrs.
    The company had sales last year of 256,000 dlrs.
    Initials said it expects to turn profitable some time in
1988 and sees sales of 100 mln dlrs annually by the end of
1989.
    The company said it now has over 100 personal retailers
marketing its products and expects to have more than 1,000 by
the end of 1987.


.I 13959
.C
acq
.W
SOSNOFF HAS SMALL NUMBER OF CAESARS <CAW> SHARES.
    NEW YORK, March 23 - Martin T. Sosnoff said his <MTS
Acquisition Corp> to date has received only a "negligible"
number of Caesars World Inc shares in response to its 28-dlr-
per-share tender offer for all shares.
    Sosnoff also said he has held preliminary talks with Pratt
Hotel Corp <PRAT> and Southmark Corp <SM> on forming a joint
venture to enter into talks to acquire Caesars in a friendly
transaction in which Sosnoff would have a 50 pct interest and
Pratt and Southmark the remainder.
    Sosnoff said the talks with Pratt and Southmark are not
being actively pursued at the presentand may or may not be
continued in the future.  He said there could be no assurance
that a joint venture would be formed or that Caesars would
agreed to talks.  "Several preliminary contacts with
representatives of Caesars have not resulted in any indication
that it wishes to enter into such negotiations," Sosnoff said.
    He said based on talks with staff members of gaming
authorities, there can be no assurance that the necessary
regulatory review of its bid for Caesars World can be completed
by the original April Three expiration date.
    Sosnoff said it has extended the tender until May 15.  The
bid remains subject to regulatory approvals and the arrangement
of financing.
    Pratt, which owns the Sands Hotel and Casino in Atlantic
City, N.J., where Caesars operates the Boardwalk Regency Hotel
and Casino, recently waged an apparently unsuccessful campaign
to acquire control of Resorts International Inc <RTA> against
New York developer Donald Trump.  Southmark owns about 37 pct
of Pratt Hotel.
    Caesars World's boasrd has urged rejection of the offer on
the grounds that it is inadequate and has said it would
investigate alternative transactions.  Sosnoff currently owns
about 13.3 pct of Caesars World.


.I 13961
.C
ship;crude;
.W
IRAQ REPORTS ATTACKS ON SUPERTANKER, OIL TARGETS.
    By MAAMOUN YOUSSEF, Reuters
    BAGHDAD, March 23 - Iraq said today its warplnes had
attacked a supertanker and four Iranian oil sites and vowed to
keep up such raids until the Gulf war ends.
    The surprise escalation of attacks on oil installations
broke more than a month-long lull in Iraqi air force action.
    It also followed celebrations yesterday of what Baghdad
hailed as Iran's failure to achieve victory during the Iranian
year which ended on Saturday.
    A high command communique said warplanes hit the western
jetty at Iran's Kharg island oil terminal in the afternoon and
struck a supertanker nearby at the same time.
    The Kharg terminal, attacked about 135 times since August
1985, was last raided in January.
    The communique did not identify the supertanker, but said
columns of smoke were seen billowing from it.
    In London, Lloyds insurance said the 162,046-ton Iranian
tanker Avaj was hit on Saturday, when Iraq reported an earlier
Gulf attack.
    But there has been no independent confirmation of today's
supertanker attack nor of other raids on shipping reported by
Baghdad in the past 24 hours.
    The last confirmed Iraqi attack took place on March eight,
when the Iranian tanker Khark-5 was hit south of Kharg.
    Iraqi warplanes also struck Iran's offshore oilfields at
Nowruz, Cyrus and Ardeshir in northern gulf, some 80 km (50
miles) west of Kharg island, today's communique said.
    The three oilfields have been raided several times in the
past three years. Oil sources said they were not crucially
important to Iran's oil export trade.
    A second high command communique today said Iraqi warplanes
flew 94 sorties against Iranan targets and positions at the war
front.
    It also reported a clash between Iraqi naval units and
several Iranian boats carrying men to attack an Iraqi oil
terminal at the northen tip of the Gulf.
    Two Iranian boats wer destroyed and sunk with their
occupants and the others fled, it said.


.I 13962
.C
acq
.W
TALKING POINT/WENDY'S INTERNATIONAL <WEN>.
    By Patti Domm, Reuters
    New York, March 23 - Takeover speculation buoyed Wendy's
International Inc's stock, even after Coca Cola Co took the
fizz out of market rumors by denying it was an interested
suitor.
    Wendy's retreated from an earlier high of 13-3/8, and lost
a point when Coca Cola <KO> said the rumors were untrue.
However, Wendy's remained up 5/8 at 12-3/8 on volume of more
than three mln shares.
    Several analysts were skeptical of the rumors, yet they
said they could not conclude a takeover of the fast food
restaurant chain was impossible.
    Wendy's declined comment on takeover rumors of all kinds.
Yet, a Wendy's spokesman said the company was aware of a
Business Week article, which named Coke as a potential suitor
and which market sources said helped ignite the rumor mill.
    Market sources mentioned Anheuser-Busch Inc <BUD> and
Pepsico Inc <PEP> as alternatives to Coke as acquirers. Neither
of those companies would comment, nor would the Wendy's
official.
    "It doesn't happen every day, every week, every month, but
its not unusual for us to be linked with those companies," said
Denny Lynch, Wendy's vice president of communications.
    However, Lynch would not comment specifically on the
current market rumors.
    Even before Coke denied the rumors, analysts had been
skeptical of a takeover since Atlanta-based Coke has stated it
views fast food chains as customers and does not want to become
a competitor to them.
    "I can't put another name on it," said Kidder peabody
analyst Jay Freedman as vaguer rumors continued to hold up
Wendy's stock. "It very well could be someone's interested."
    But Freedman said he doesn't believe now is the right time
for Wendy's to be sold.
    "They're obviously having operational difficulties. I've
always believed at the right price Wendy's would consider (an
offer), but I can't believe this is the right price at the
right time," Freedman said.
    "If a transaction takes place, the buyer's going to control
the situation," Freedman said.
    "I just don't think there's anything going on. I don't
think it's worth much more than where it is," said Joseph Doyle
of Smith Barney.
    Analysts said Wendy's has suffered largely from the "burger
wars" between itself, McDonald's Corp <MCD> and Pillsbury Co's
<PSY> Burger King chain. Wendy's, the third largest fast food
hamburger chain in the U.S., lost about 11 pct in same store
sales last year, analysts said.
    Wendy's also fumbled when it introduced a high-priced
breakfast, which it has since withdrawn, analysts said. Some
analysts said the company should be bringing in new products,
but it is too soon to predict a significant turnaround.
    There are analysts, however, who believe Wendy's may be
vulnerable to a takeover.
    James Murren of C.J. Lawrence said Wendy's could be worth
14 to 15 dlrs on a break-up basis. He said the company has
improved its debt-to-equity ratio and Wendy's owns a high
percent of its own restaurants - 38 pct of 3,500.
    "They also have some attractive leaseholds on their
restaurants," Murren said.
    Murren said that despite the downturn in sales last year,
Wendy's real sales, store for store, turned upwards in the
fourth quarter. "That was about the first time in seven
quarters," he said.
    Caroline Levy of E.F. Hutton also believes something could
be going on with Wendy's. "My gut feeling is something's going
to happen. I don't know what," she said.
    She estimated a takeover price would be at least 15 dlrs
per share.
    One analyst speculated that Coke became the rumored suitor
because Wendy's decided to sell Coke at its fountains instead
of Pepsi.
    Wendy's is currently embroiled in litigation brought by
Pepsi, which holds a contract with the company, analysts said.
Pepsi's soda is still sold in the Wendy's restaurants.


.I 13964
.C
oilseed;grain;corn;
.W
******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS  SOYBEANS 13,417 WHEAT 12,003 CORN 27,623.
Blah blah blah.

.I 13967
.C
grain;corn;sorghum;
.W
EC COMMISSION SET TO DETAIL GRAIN IMPORT PLAN.
    BRUSSELS, March 23 - The EC Commission will decide shortly
precisely how to arrange the import of third country maize and
sorghum into the EC in fulfilment of its agreement with the
United States, Commission sources said.
    Under the accord, reached following U.S. complaints about
the impact on its agricultural exports of Spanish EC
membership, the EC will import two mln tonnes of maize and
300,000 tonnes of sorghum a year up to end of 1990.
    All this produce will be imported into Spain at special
levy levels likely to be below those applying for imports into
other EC countries.
    The sources said it was possible that the Spanish
intervention board would be asked to buy the produce directly
this year, as it was rather late to make other arrangements.
    They added that the choice for future years appears to lie
between a system of regular tenders and the setting of a daily
special levy applicable to Spanish imports.
    There will initially be no tax on re-exports of maize and
sorghum from Spain to other EC countries, although such a tax
could be imposed later, the sources added.


.I 13968
.C
earn
.W
PATIENT TECHNOLOGY INC <PTI> YEAR LOSS.
    HAUPPAUGE, N.Y., March 23 -
    Shr loss 12 cts vs loss 63 cts
    Net loss 596,000 vs loss 2,934,000
    Revs 7,261,000 vs 6,600,000
    Year
    Oper shr loss 14 cts vs loss 1.28 dlrs
    Oper net loss 683,000 vs loss 5,824,000
    Revs 29.8 mln vs 22.7 mln
    Avg shrs 4,930,000 vs 4,546,000
    NOTE: Year net excludes losses from discontinued operations
of 764,000 dlrs vs 5,152,000 dlrs.
                        


.I 13969
.C
earn
.W
GEMINI TECHNOLOGY INC <GMTIF> YEAR LOSS.
    VANCOUVER, British Columbia, March 23 -
    Shr loss 74 cts
    Net loss 4,192,613
    Revs 2,928,021
    Note: 1986 net includes 3,095,000 dlr write-off tied to
discontinuation of emulator board production.
    Co's 1st fl-yr of operation.


.I 13970
.C
earn
.W
SOCIETE GENERALE REPORTS HIGHER 1986 PROFITS.
    PARIS, March 23 - France's Societe Generale <SGEN.PA> bank,
which will be sold to the private sector in the second half of
this year, reported increased profits for last year.
    Societe Generale, one of the three largest state-owned
banking groups, said in a statement that its parent company
profit for 1986 totalled 800 mln francs, up 21.2 pct on 1985's
660 mln profit.
    This was in line with earlier forecasts of profit of
between 770 and 800 mln francs.
    The bank's parent company gross operating profits were up
5.4 pct at 21.34 billion francs against 20.24 billion in 1985.
    The increase in the bank's gross operating profits was
mostly due to a rise in french franc deposits and personal
loans as well as the development of its financial activities,
Societe Generale said.
    Parent company net banking earnings last year were also up
at 13.9 billion francs compared with 13.57 billion in 1985
while operating costs totalled 7.44 billion francs against 6.67
billion the previous year.
    Societe Generale President Marc Vienot said in December he
expected group 1986 consolidated profits to rise to between 2.5
billion and 2.6 billion francs from 1.62 billion in 1985.


.I 13972
.C
retail
.W
FRENCH HOUSEHOLD CONSUMPTION FALLS IN FEBRUARY.
    PARIS, March 23 - French household consumption of
industrial goods fell 1.1 pct seasonally adjusted to 21.32
billion francs last month from 21.55 billion in January, the
National Statistics Institute (INSEE) said.
    This brought consumption back down to the December 1986
level, it added.
    INSEE said that the fall was due to a sharp decline in
purchases of clothing, which were high in January due to the
cold weather. The decline was partly compensated by a small
rise in purchases of durable goods.


.I 13974
.C
gnp
.W
FRENCH ECONOMIC COUNCIL PESSIMISTIC ON 1987 GROWTH.
    PARIS, March 23 - France's Economic and Social Council
(CES), an advisory body comprising industrialists, trade
unionists and representatives of other sectors of the French
economy, said the country's annual growth may not reach two pct
in 1987.
    French gross domestic product risks not reaching the two
pct growth registered last year, the Council said in a report
on first quarter 1987 economic activity without giving any
specific forecasts. Finance Minister Edouard Balladur was
quoted today as saying that French 1987 growth will probably be
about two pct.
    Balladur said in an interview with the financial daily Les
Echos that the country's economic growth will probably be about
the same as last year due to a less favourable international
environment.
    CES President Philippe Neeser said one of the major fears
for the French economy this year was a resurge in inflation.
    Disinflation was an absolute priority, Neeser told
journalists, adding that a failure to do this would be
extremely serious as if would be very difficult to reverse for
many years.


.I 13975
.C
earn
.W
UNIFORCE TEMPORARY <UNFR> SETS SPLIT.
    NEW HYDE PARK, N.Y., March 23 - Uniforce Temporary
Personnel Inc said it declared a three-for-two stock split,
payable May 15 to stockholders of record April 14.


.I 13978
.C
earn
.W
MANHATTAN NATIONAL CORP <MLC> 4TH QTR LOSS.
    NEW YORK, March 23 -
    Oper shr loss 20 cts vs loss 81 cts
    Oper net loss 1,042,000 vs loss 4,077,000
    Revs 38.5 mln vs 50.3 mln
    12 mths
    Oper shr loss six cts vs loss 43 cts
    Oper net loss 336,000 vs loss 2,176,000
    Revs 137.8 mln vs 209.1 mln
    NOTE: qtrs 1986 and prior exclude net realized investment
gains of 74,000 dlrs and 644,000 dlrs, respectively, and years
1986 and prior exclude realized investment gains of 642,000
dlrs and 1,979,000 dlrs, respectively.


.I 13979
.C
earn
.W
KIDDIE PRODUCTS INC <KIDD> YEAR NET.
    AVON, Mass., March 23 -
    Shr 1.25 dlrs vs 1.14 dlrs
    Net 472,254 vs 446,805
    Revs 21.4 mln vs 19.4 mln


.I 13988
.C
acq
.W
BELLSOUTH <BLS> COMPLETES PURCHASE FOR SHARES.
    ATLANTA, March 23 - BellSouth Corp said it completed its
previously-announced agreement to acquire <Dataserv Inc> for an
exchange of shares.
    BellSouth said under the Nov 25, 1986, agreement, it
exchanged one of its common shares for every 13.3 Dataserv
common shares. The exchange reflects the Feb 23 three-for-two
BellSouth stock split, the company said.


.I 13993
.C
acq
.W
REXHAM <RXH> GETS TAKEOVER OFFER.
    CHARLOTTE, N.C., March 23 - Rexham Corp, a maker of
packaging materials and machinery, said it received an
unsolicited offer of 43 dlrs a share from Nortek Inc <NTK>.
    Nortek, a Providence, R.I., textile manufacturer, has
disclosed it holds 381,050 Rexham shares, or about 9.1 pct of
the outstanding, the company said.
    Rexham said it does not welcome the proposal but added its
board will study the offer and respond in due course.
    Nortek has proposed paying half cash and half Nortek
convertible preferred stock for Rexham, which has about 4.2 mln
shares outstanding.
    The cash portion would include the amount previously paid
for the Rexham stake and the terms of the convertible preferred
stock would be negotiated, the company said.
    Rexham said it received the takeover offer in a letter from
Nortek.


.I 13996
.C
earn
.W
BANCA D'AMERICA E D'ITALIA 1986 YEAR.
    MILAN, March 23 - Net profits for year ended December 31
1986 1.3 billion lire vs 47.3 billion
    Deposits from clients 3,691.0 billion lire vs 3,419.0
billion
    Loans to clients 2,448.0 billion lire vs 2,181.5 billion
    Note: The bank, sold by Bankamerica Corp <BK.N> last
December to West Germany's Deutsche Bank AG <DBKG.F>, said the
sharp fall in net profit reflected various factors including
higher set-asides for risk coverage and a high tax burden.


.I 13999
.C
crude
.W
ENERGY ANALYST PROPOSES U.S. OIL TARIFF.
    WASHINGTON, March 23 - Energy analyst Edward Krapels said
the United States should consider an oil tariff to keep U.S.
dependence on imports below 50 pct.
    "On the supply side, the argument in favor of a contingent,
variable import tariff is most persuasive," Krapels, president
of Energy Security Analysis, Inc said in a statement at a House
Energy and Power subcommittee hearing.
    "An optimal tariff would be one implemented only if the
international price of crude oil falls below, say, 15 dlrs a
barrel. On the demand side, the obvious policy is an excise tax
on transportation fuels," Krapels said.
    But William Johnson of the Jofree Corp disagreed with the
oil tariff proposal, saying Congress should remove price
controls on natural gas, repeal the windfall profits tax on oil
companies, allow exports of Alaskan oil and provide tax
incentives for U.S. oil production, or, at the least, preserve
exisiting tax incentives for drilling. He also urging filling
the Strategic Petroleum Reserve at a faster rate.
    Richard Adkerson of Arthur Andersen and Co told the
subcommittee oil imports were expected to increase because
funds for exploration and development of domestic oil sources
cannot now be economically justified due to low oil prices.


.I 14000
.C
earn
.W
SECURITY CAPITAL <SCC> SUSPENDS DIVIDENDS.
    NEW YORK, March 23 - Security Capital Corp said it has
suspended quarterly cash dividend payments indefinitely.
    The company also said its board has withdrawn authroization
for the company to buy its stock on the open market. Its
previous dividend payment was five cts on February 24.
    Security Capital said this action was taken in response to
its continuing operating losses, primarily at Benjamin Franklin
Savings Association, a Houston-based subsidiary.


.I 14001
.C
earn
.W
AUDITORS LIFT QUALIFICATION ON BRUNSWICK <BC>.
    CHICAGO, March 23 - Auditors of Brunswick Corp lifted a
four year qualification on the company's financial statements,
vice president-finance Frederick Florjancic told securities
analysts here.
    The financial results for the diversified leisure and
defense/aerospace company had been qualifed by Arthur Andersen
and Co since 1982.
    The qualification related to certain tax liabilities,
amounting to 65 mln dlrs, associated with a medical division
sold by Brunswick in 1982, he said.


.I 14002
.C
earn
.W
ALC COMMUNICATIONS CORP <ALCC> 1986 LOSS.
    BIRMINGHAM, Mich., March 23 -
    Shr loss 4.63 vs loss 2.43
    Net loss 60,780,000 vs loss 28,898,000
    Rev 499.7 mln vs 432.1 mln
    NOTE: 1986 net includes loss of 49.9 mln dlrs for
restructuring charges.
   


.I 14007
.C
earn
.W
LESCO INC <LSCO> 1ST QTR FEB 28 LOSS.
    CLEVELAND, March 23 -
    Shr loss 24 cts vs profit three cts
    Net loss 982,779 vs profit 104,418
    Revs 11.2 mln vs 12.3 mln


.I 14008
.C
earn
.W
SEISMIC ENTERPRISES INC <SEIS> 4TH QTR LOSS.
    HOUSTON, March 23 -
    Shr loss eight cts vs profit 10 cts
    Net loss 714,905 vs profit 889,679
    Revs 1,091,461 vs 3,156,569
    Year
    Shr loss five cts vs profit 22 cts
    Net loss 422,037 vs profit 1,850,637
    Revs 6,642,490 vs 7,948,312
    Avg shrs 8,808,323 vs 8,412,822


.I 14010
.C
earn
.W
ALC <ALCC> ANTICIPATES 1ST QTR PROFIT.
    BIRMINGHAM, Mich., March 23 - ALC Communications Corp said
that because of strong traffic growth and cost reductions it
anticipates reporting a profit for the first quarter of 1987,
versus a loss of 1.4 mln dlrs, or 15 cts a share, for the first
quarter of 1986.
    Earlier, the company reported a net after-tax loss for 1986
of 60.8 mln dlrs, or 4.63 dlrs a share, compared with a loss of
28.9 mln dlrs, or 2.43 dlrs a share, in 1985.
   


.I 14011
.C
earn
.W
VARLEN CORP <VRLN> DECLARES QTLY DIVIDEND.
    NAPERVILLE, Ill., March 23 -
    Qtly div 15 cts vs 15 cts prior
    Pay April 30
    Record April 15


.I 14012
.C
earn
.W
ANALYSIS AND TECHNOLOGY INC <AATI> HIKES PAYOUT.
    NORTH STONINGTON, Conn., March 23 -
    Annual div 11 cts vs 10 cts prior
    Pay April 24
    Record March 31


.I 14014
.C
crude
.W
IRAQ REPLACES OIL MINISTER IN BIG GOVT SHUFFLE.
    BAGHDAD, March 23 - Iraqi President Saddam Hussein carried
out his first major government shakeup in five years tonight,
naming a new oil minister in shuffling three posts.
    One minister was dropped in the shuffle, announced in a
presidential decree. It gave no reason for the changes in the
government of the Arab Baath Socialist Party which has ruled
Iraq since a revolution in 1968.
    The decree named the head of the Iraqi National Oil Company
(INOC), Isam Abdul-Rahim al-Chalaby, to take over as oil
minister replacing Qassem Ahmed Taqi.
    Taqi, appointed oil minister in the last significant
government reorganization in 1982, was moved to be minister of
heavy industries.


.I 14017
.C
acq
.W
CAESARS <CAW> HAS NO COMMENT ON MTS TALKS.
    LOS ANGELES, March 23 - Caesars World Inc declined
immediate comment on news that Martin Sosnoff's <MTS
Acquisition Corp> has held preliminary talks with two companies
on the possibility of forming a joint venture to pursue the
acquisition of Caesars.
    Earlier today MTS said it held talks with Pratt Hotel Corp
<PRAT> and Southmark Corp <SM> on forming a venture to acquire
Caesars.
    MTS also reported that it received a "negligible" number of
Caesars World shares in response to its 28 dlr per share tender
offer.
    Earlier this month Caesars World rejected the Sosnoff
takeover bid and said it is considering alternatives that
include a restructuring or sale of the company to another
party.


.I 14018
.C
acq
.W
DIXONS SAYS CITICORP TO WITHDRAW CYCLOPS OFFER.
    NEW YORK, March 23 - <Dixons Group PLC> said it received a
letter on March 19 from Citicorp Capital Investors Ltd, part of
the Cyacq investor group making a rival bid for Cyclops Corp
<CYL>, proposing to drop the group's offer if Dixons would sell
Cyclops industrial businesses to Citicorp.
    "Cyacq's main equity investor appears ready to pull out and
deal directly with us for merely part of the company" said
Dixons. "It raises questions as to the strength of their
consortium and the purpose of their offer."
    Dixons also said a U.S. Federal Court had refused a request
by counsel for Cyacq, Audio/Video Affiliates Inc <AVA> and a
shareholder plaintiff to prevent Dixons from
completing its tender offer for Cyclops. It also said the court
refused to require Cyclops to provide Cyacq with confidential
information previously provided to Dixons.
    On Friday Cyacq Corp, an investor group led by Audio/Video
Affiliates and Citicorp, raised their offer for Cyclops to
92.50 dlrs per share from 80 dlrs per share, if certain
conditions were satisfied.
    Last week Dixons said it won out over rival bidders for
Cyclops after getting 54 pct of Cyclop's oustanding with a
90.25 dlr or 384 mln dlr tender offer that expired March 18.
    On Friday, Dixons agreed to reopen its tender offer until
March 25, Wednesday.
    Dixons today called Cyacq's higher 92.50 dlr a share offer
for Cyclops "highly conditional."


.I 14022
.C
earn
.W
PRIMARK CORP <PMK> REGULAR DIVIDEND.
    MCLEAN, Va., March 23 -
    Qtly div 32.5 cts vs 32.5 cts in prior qtr
    Payable Mary 15
    Record April 15


.I 14023
.C
earn
.W
SAXON OIL DEVELOPMENT PARTNERS <SAX> IN PAYOUT.
    DALLAS, March 23 -
    Qtly div two cts vs two cts prior
    Pay May 15
    Record March 31
    NOTE: Full name Saxon Oil Development Partners LP.


.I 14027
.C
earn
.W
IBM <IBM> REBOUND SEEN BY BERNSTEIN ANALYST.
    NEW YORK, March 23 - International Business Machines Corp,
hit by a two-year earnings slump, should begin a come-back by
the end of 1987 and post strong growth in 1988, analyst Rick
Martin of Sanford C. Bernstein Co Inc said.
    "There will be increasing momentum in earnings, albeit not
until later this year," Martin said at a technology conference
sponsored by the investment firm.
    Martin said the coming rebound reflects new product
introductions in the mid-range area, rather than any drastic
improvement in economic growth or U.S. capital spending.
    IBM, whose stock hit a 52-week low of 115-3/4 dlrs in
mid-January, has come back lately. IBM was trading up 7/8 at
149-1/2 dlrs.
    Analysts, computer industry executives, and the company
itself, have highlighted the external economic factors
hampering IBM's growth.
    But Martin said the product cycle was key to understanding
the rise and fall of IBM and other computer companies, and
pointed to Digital Equipment Corp <DEC> to support his view.
"By replacing the product line, earnings have soared," he said
of DEC's line of VAX computers.
    In contrast to DEC, IBM faultered with an incompatible
mid-range product line. A new computer code-named "Fort Knox"
was supposed to tie together a number of IBM's mid-range
systems, but the product never got off the ground, he said.
    Instead, aspects of the computer were integrated into the
IBM 9370 machine introduced last year, and other aspects should
be unwrapped by 1988, Martin said. "The major story will be a
rebound in its mid-range business."
    He said sales of IBM's mid-range computers fell about 13
pct in 1986. But the new products will lead to 5.8 pct growth
in mid-range computers this year and 30.7 pct growth in 1988.
    High-end computers, primarily the Sierra line, are coming
to the end of their product life cycle. Although growing 22.5
pct in the midst of IBM's sharply lower 1986 year, growth will
drop to 1.5 pct in 1987 and 1.9 pct in 1988, he said.
    By 1988, overall revenue growth should rise to about 16
pct, against 5.8 pct growth in 1987 and 2.4 pct in 1986, Martin
said. Last year, IBM earned 4.8 billion dlrs on revenues of
51.3 billion dlrs.
    Investors asked what this all meant to DEC, whose earnings
and stock have been propelled by a strong slew of product
introductions in the mid-range area.
    In response, Martin said he did not view IBM as a threat to
DEC, nor DEC as a threat to IBM, because both companies were
catering largely to existing customer bases, rather than
stealing market share from one another.
 


.I 14030
.C
acq
.W
CITICORP (CCI) SEEKS CYCLOPS <CYL> STEEL UNIT.
    WASHINGTON, March 23 - Citicorp Capital Investors Ltd, a
unit of Citicorp, said it wants to buy Cyclops Corp's steel
assets from Dixons Group PLC and is willing to pay 124.4 mln
dlrs, nearly 13 mln dlrs more than had been offered for the
assets by Alleghany Corp.
    The disclosure of the Citicorp unit's interest in Cyclops'
Industrial Group came in disclosure documents filed by Dixons
Group with the Securities and Exchange Commission.
    Alleghany's MSL Industries Inc unit had agreed to buy the
steel assets from Dixons Group for 111.6 mln dlrs.
    Dixons Group has tendered for all outstanding Cyclops
shares at 90.25 dlrs a share in cash.
    The Citicorp unit said its higher offer came to about three
dlrs more for each Cyclops share outstanding.
    As a condition of its offer, it said Dixons would have to
increase the cash price it was to pay for each Cyclops share to
93.25 dlrs in cash.
    Dixons on Friday extended the expiration time of its tender
offer until midnight (EST) March 24.


.I 14031
.C
earn
.W
BRUNSWICK <BC> SEES HIGHER 1987 FIRST QUARTER.
    CHICAGO, March 23 - Brunswick Corp expects 1987 first
quarter sales to be up "dramatically" and profits to "do well,"
chairman and president Jack Reichert said after a securities
analysts meeting.
    He declined to be more specific.
    In the 1986 first quarter, Brunswick reported earnings of
23.8 mln dlrs or 57 cts a share on sales of 396.7 mln dlrs.
    Reichart noted that results of its two newly-acquired boat
manufacturing companies will be included in the company's first
quarter report.
    Brunswick expects its recreation centers to benefit from
increased attention to the sport of bowling resulting from
acceptance in the 1988 Summer Olympics of bowling as an
exhibition sport and as a medal sport in the 1991 Pan American
Games, he said.
    He said field testing of a new bowling concept involving
electronic features is being readied for test marketing this
summer, and if successful, could "materially benefit"
operations.
    Brunswick is currently test marketing in California a
health club facility adjoining a bowling center, he said.
    Turning to its defense operations, Reichert said he expects
the division to receive significant contracts in the near
future. At 1986 year end, Brunswick's defense contract backlog
stood at 425 mln dlrs.
    Frederick Florjancic, vice president-finance, told analysts
Brunswick was disappointed two credit rating services recently
downgraded the company's debt which stood at about 665.4 mln
dlrs at 1986 year end.
    "We are confident we can service our debt and bring it down
in the very near term," based on strong cash flow from
Brunswick's expanded boat operations, Florjancic said.
    Shareholders at the company's April 27 annual shareholders
meeting will be asked to approve an increase in the authorized
common shares outstanding to 200 mln from 100 mln shares, a
company spokesman said.


.I 14033
.C
acq
.W
MARK IV <IV> UNIT TO BEGIN CONRAC <CAX> TENDER.
    NEW YORK, March 23 - Mark IV Industries Inc said it plans
to begin a tender offer at 25 dlrs a share for all outstanding
shares of Conrac Corp <CAX>, a Stamford, Conn., maker of
control instruments and telecommunications products.
    Mark IV said it owns about 670,400 shares or about 9.9 pct
of Conrac's outstanding shares.
    The offer, to be made through Mark IV Acquisition Corp, a
wholly owned subsidiary, will not be conditioned on any minimum
number of shares being tendered, the company said.
    The tender offer will be conditioned upon, among other
things, the completion of financing arrangements.
    The terms and conditions of the offer will be described in
documents to be filed with the Securities and Exchange
Commission and mailed to Conrac shareholders as soon as
possible.
    Bear Stearns and Co is expected to act as dealer manager
for the offer, it said.
    A Conrac spokesman declined comment.
    Conrac has about 6.75 mln shares outstanding. Its shares
closed off 1-3/8 at 21-1/8 as about 84,400 shares changed
hands.
    Mark IV is a Williamsville, N.Y., maker of pastic products
and industrial control equipment.


.I 14034
.C
earn
.W
WEATHERFORD <WII> SUSPENDS PREFERRED PAYOUTS.
    HOUSTON, March 23 - Weatherford International said it
suspended indefinitely payment of its regular quarterly
dividend of 65.6 cts per share on its 2.625 convertible
exchangeable cumulative preferred stock.
    Weatherford said this will be the sixth non-payment of the
dividend on the stock. It said payment would have been on April
15, 1987.
    Weatherford also said the holders of the preferred stock
will have the right to elect two additional directors to the
board of directors.


.I 14035
.C
acq
.W
MHI GROUP <MH> AFFILIATED WITH CEMETARY OFFER.
    TALLAHASSEE, Fla., March 23 - MHI Group Inc said it is
affiliated with several investors who have entered into a
letter of intent providing for the purchase of Star of David
Memorial Gardens and Cemetery.
    The company said those investors will, under certain
circumstances, cede their rights under the letter of intent and
any definitive agreement to purchase the Fort Lauderdale, Fla.,
funeral home and cemetery business to MHI.


.I 14037
.C
ship;crude;
.W
IRAQ REPORTS ATTACKS ON SUPERTANKER, OIL TARGETS.
    BAGHDAD, March 23 - Iraq said its warplanes had attacked a
supertanker and four Iranian oil sites and vowed to keep up
such raids until the Gulf war ends.
    The surprise escalation of attacks on oil installations
broke more than a month-long lull in Iraqi air force action.
    It also followed celebrations yesterday of what Baghdad
hailed as Iran's failure to achieve victory during the Iranian
year which ended on Saturday.
    A high command communique said warplanes hit the western
jetty at Iran's Kharg island oil terminal in the afternoon and
struck a supertanker nearby at the same time.
    The Kharg terminal, attacked about 135 times since August
1985, was last raided in January.
    The communique did not identify the supertanker, but said
columns of smoke were seen billowing from it.
    In London, Lloyds insurance said the 162,046-ton Iranian
tanker Avaj was hit on Saturday, when Iraq reported an earlier
Gulf attack.
    But there has been no independent confirmation of today's
supertanker attack nor of other raids on shipping reported by
Baghdad in the past 24 hours.
    The last confirmed Iraqi attack took place on March 8, when
the Iranian tanker Khark-5 was hit south of Kharg.
    Iraqi warplanes also struck Iran's offshore oilfields at
Nowruz, Cyrus and Ardeshir in northern gulf, some 80 km (50
miles) west of Kharg island, today's communique said.


.I 14039
.C
acq
.W
HARCOURT <HBJ> DISAPPOINTED WITH HARPER <HPR>.
    NEW YORK, March 23 - Harcourt Brace Jovanovich Inc said it
is disappointed that no negotiations with Harper and Row
Publishers Inc are underway.
    Harcourt made a 50 dlrs a share unsolicited bid on March
11.
    On March 17, Harcourt said three of its officers met with
Harper's financial advisor but has had no discussions since
then.
    Harcourt said it does not plan to increase its bid.
    Harcourt's bid was preceded by an earlier 34 dlrs a share
bid by Theodore Cross.
    Harper had no response to Harcourt's announcement. Earlier
today, Harper said a recently appointed special committee of
independent directors had received expressions of interest from
several domestic and foreign firms with respect to
restructuring or acquisition transactions.
    Harper said no determination had been made as to any
transaction and that its special committee is continuing in
talks with interested parties in an effort to come to a
conclusion in the near future.


.I 14041
.C
earn
.W
CLUB MED INC <CMI> 1ST QTR JAN 31 NET.
    NEW YORK, March 23 -
    Shr 41 cts vs 38 cts
    Net 5,630,000 vs 5,152,000
    Revs 97.1 mln vs 85.4 mln
    


.I 14042
.C
earn
.W
DRIVER-HARRIS CO <DRH> 4TH QTR NET.
    HARRISON, N.J., March 23 -
    Shr profit 22 cts vs loss 2.15 dlrs
    Net profit 271,000 vs loss 2,530,000
    Revs 16.3 mln vs 15.2 mln
    Avg shr 1,238,000 and 1,177,000
    12 mths
    Shr profit 82 cts vs loss 2.14 dlrs
    Net profit 982,000 vs loss 2,517,000
    Revs 66.5 mln vs 64.5 mln
    Avg shrs 1,193,000 vs 1,177,000
    NOTE: net loss 1985 yr and qtr includes a charge of
1,042,000, or 89 cts per share, for expenses related to
restructuring of company's domestic alloy business.


.I 14043
.C
oilseed;soybean;
.W
1987 U.S. SOYBEAN LOAN SHOULD STAY SAME-AMSTUTZ.
    WASHINGTON, MARCH 23 - Congress should give the U.S.
Agriculture Secretary the authority to keep the 1987 soybean
loan rate at the current effective rate of 4.56 dlrs per bushel
in order to help resolve the problem of soybean export
competitiveness, USDA undersecretary Dan Amstutz said.
    Speaking to reporters following a Senate Agriculture
Appropriations hearing, Amstutz suggested that one way out of
the current soybean program "dilemma" would be for Congress to
allow the loan rate to remain at 4.56 dlrs. He indicated if the
loan rate were 4.56 dlrs, USDA could then consider ways to make
U.S. soybeans more competitive such as using certificates to
further buydown the loan rate.
    Under current law, the 1987 soybean loan rate cannot be
less than 4.77 dlrs per bu.
    Amstutz' suggestion would be for Congress to change the
farm bill to allow USDA to leave the soybean loan rate at 4.56
dlrs in crop year 1987 rather than increase it to 4.77 dlrs.
    The 1986 effective loan rate is 4.56 dlrs because of the
4.3 pct Gramm-Rudman budget cut.
    Amstutz stressed that a major factor in any decision on
soybean program changes will be the budget costs.
    He told the hearing that the problem in soybeans is that
the U.S. loan rate provides an "umbrella" to foreign production
and causes competitive problems for U.S. soybeans.
    Asked about the American Soybean Association's request for
some form of income support, Amstutz said "the competitive
problem is the most severe." He said USDA is still studying the
situation and "no resolution" has yet been found.


.I 14047
.C
earn
.W
COOPER DEVELOPMENT <BUGS> RESTATES RESULTS.
    PALO ALTO, Calif., March 23 - Cooper Development Co said it
revised results for the year ended October 31 to a loss of 61.7
mln dlrs, or 2.33 dlrs per share, down from the
previously-reported loss of 12.1 mln dlrs, or 46 cts per share.
    The restatement was made because of change in the method of
accounting for a combination of several company-controlled
concerns that resulted in a 53.5 mln dlr charge, Cooper
Development said.
    Last August Cooper Development combined its Cooper
Biomedical Inc unit and its Cooper Laboratories subsidiary with
Technicon Instruments Corp, a company acquired from Revlon Inc
<REV>, a Cooper spokesman said.
    The spokesman said the transaction was accounted for as an
acquisition, but the Securities and Exchange Commission took
issue with the accounting method and said it should be
accounted for as a reorganization of entities under common
control.
    This treatment requires that the costs associated with the
transaction be expanded rather than capitalized as an
intangible asset, the company said.
    It also said that, since the charged required an expensing
of previously accrued liabilities, the company will experience
no resulting material change it its cash flow.


.I 14049
.C
earn
.W
AMBRIT INC <ABI> 4TH QTR JAN 31 NET.
    CLEARWATER, Fla., March 23 -
    Shr 28 cts vs nil
    Net 3,614,000 vs 7,000
    Revs 37.5 mln vs 7,835,000
    Year
    Shr 13 cts vs nil
    Net 1,601,000 vs 30,000
    Revs 145.5 mln vs 51 mln
    NOTE: Per share amounts are after payment of preferred
stock dividends.


.I 14051
.C
earn
.W
<ATLANTIS INTERNATIONAL LTD> YEAR LOSS.
    CALGARY, Alberta, March 23 -
    Shr loss 35 cts vs profit six cts
    Net loss 3,555,293 vs profit 649,715
    Revs 4,451,732 vs 3,910,652
    Note: 1986 net includes 3.7 mln dlr writedown of oil and
gas properties.


.I 14054
.C
earn
.W
******AMERICAN EXPRESS DECLARED A TWO-FOR-ONE STOCK SPLIT .
Blah blah blah.

.I 14055
.C
earn
.W
******AMERICAN EXPRESS RAISES QTLY DIVIDEND TO 38 CTS FROM 36 CTS.
Blah blah blah.

.I 14056
.C
wheat;grain;corn;
.W
U.S. WILLING TO TALK TO MOSCOW ON WHEAT PRICE.
    WASHINGTON, MARCH 23 - U.S. Agriculture undersecretary Dan
Amstutz indicated the United States is willing talk with the
Soviet Union about the competitiveness of U.S. wheat prices but
would not discuss making U.S. wheat prices "cheap."
    "There sometimes is a difference between being competitive
and being cheap," Amstutz told a Senate Agriculture
Appropriations hearing.
    Amstutz said the difference of opinion between Moscow and
Washington last summer on the level of the U.S. subsidy offered
on wheat to the Soviet Union, was over whether the U.S. wheat
price was competitive or cheap.
    "I think there is a (U.S.) willingness to explore this
issue as it pertains to competitiveness," Amstutz said.
    However, Amstutz added that the United States would not be
willing to discuss wheat prices with Moscow "if the issue is
being cheap."
    Asked later by a reporter what he meant by the distinction
between competitive and cheap, Amstutz would not elaborate.
    Amstutz said it is the U.S. judgment that the long-term
grain agreement between the two countries calls for Moscow to
buy at least four mln tonnes each of wheat and corn annually at
"prices in effect in this country."
    Amstutz made the comments in response to a question from
Sen. Charles Grassley, R-Iowa, about expanding the export
enhancement program to include grain sales to the Soviet Union.


.I 14057
.C
acq
.W
******AMERICAN EXPRESS BOARD APPROVED NIPPON LIFE PURCHASE OF SHEARSON INTEREST.
Blah blah blah.

.I 14061
.C
earn
.W
UNITED ILLUMINATING CO <UIL> TWO MONTHS FEB 28.
    NEW HAVEN, Conn., March 23 -
    Shr 1.51 dlr  vs 1.08 dlr
    Net 23.1 mln vs 18.2 mln
    Oper revs 81.1 mln vs 86.5 mln
    12 mths
    Shr 6.41 dlrs vs 5.77 dlrs
    Net 106.5 mln vs 99.2 mln
    Oper revs 465.8 mln vs 509.8 mln
    NOTE: 1987 periods do not reflect the terms of earnings
stipulation agreement among the company and various departments
submitted for approval on March 18.
   


.I 14062
.C
earn
.W
DATA CARD <DATC> SEES LOWER YEAREND RESULTS.
    MINNEAPOLIS, March 23 - Data Card Corp said it does not
expect to meet its earnings and revenue targets for the fiscal
year ending March 28.
    Earlier, the company said it expected earnings per share
from continuing operations to be 35 to 45 cts a share. Now it
sees that figure at 15 cts a share, or about 1.5 mln dlrs.
    Data Card said it expects revenues for the year in the
range of 170 mln to 175 mln dlrs, down from a previous estimate
of 180 mln to 185 mln dlrs.
    It said integration of Addressograph Farrington Inc, a
private company acquired on Aug 25, 1986, is proving more
difficult than expected. The company reported revenues of 154
mln dlrs and net income of 10.6 mln dlrs in fiscal 1986 ended
March 26, 1986.



.I 14064
.C
acq
.W
DU PONT <DD> UPS STAKE IN PERCEPTIVE SYSTEMS.
    HOUSTON, March 23 - Du Pont Co has increased its equity
stake in <Perceptive Systems Inc> to 33.5 pct from 20 pct,
Perceptive Systems said.
    Perceptive Systems, a venture capital firm based in
Houston, makes digital imaging equipment.


.I 14065
.C
acq
.W
QUAKER OATS <OAT> SELLS VERNELL'S FINE CANDIES.
    CHICAGO, March 23 - Quaker Oats Co said Keystone Partners
Inc has purchased Vernell's Fine Candies Inc, previously an
indirect subsidiary of Quaker. The price was not disclosed.
    It said Vernell's, based in Bellevue, Wash., had annual
sales exceeding 30 mln dlrs. Vernell's was acquired by Quaker
in its acquisition of Golden Grain Macaroni Co in August 1986.


.I 14066
.C
earn
.W
LINCOLN SAVINGS <LNSB> SETS FIRST PAYOUT.
    CARNEGIE, Penn., March 23 - Lincoln Savings Bank said its
board declared an initial dividend of 10 cts per share, payable
April 17 to shareholders of record April 10.


.I 14067
.C
acq
.W
GRAPHIC INDUSTRIES <GRPH> ENDS BUYOUT TALKS.
    ATLANTA, March 23 - Graphics Industries Inc said it
terminated negotiations for the acquisition of <Holladay-Tyler
Printing Corp>, Rockville, Md.
    The companies on March 10 announced that they had signed an
agreement in principle for the acquisition.
    No reason was given termination of the negotiations.


.I 14068
.C
earn
.W
UNITED <UIL> PACT MAY LOWER NONCASH INCOME.
    NEW HAVEN, Conn., March 23 - United Illuminating Co said
that if the Department of Utility Controls approves an earnings
stipulation agreement submitted March 18, it will reduce
through accounting procedures its 1987 noncash earnings by 16
mln dlrs or 1.15 dlr per share.
    For the two month period ended February 28, 1987, it said
the amount of the reduction would amount to 19 cts per share.
Earlier, it reported net income for the two-month period of
23.1 mln dlrs of 1.51 dlr a share.
    United said the approval would lead it to an equity return
level comparable with the electric utility industry average.


.I 14074
.C
crude
.W
HUGHES' U.S. RIG COUNT RISES TO 784.
    HOUSTON, March 23 -  U.S. drilling activity rose last week
with the number of working rotary rigs up by 23 to 784, against
1,063 working rigs one year ago, Hughes Tool Co. said.
    The improvement was the first increase this year in the
weekly rig count, which had dropped steadily since early
January when a total of 962 rotary rigs were working.
    Among individual states, Texas and Oklahoma reported the
biggest gains in drilling last week with increases of 21 and
11, respectively. California and Louisiana were each up by
three and Wyoming gained two additional working rigs.
    Hughes Tool said it counted a total of 692 rigs drilling on
land, 74 rigs active offshore and 18 drilling in inland waters.
In Canada, the rig count was up by two to 183, against 324 one
year ago.


.I 14075
.C
trade
.W
AMSTUTZ SAYS FARM TRADE ACCORD POSSIBLE IN 1988.
    WASHINGTON, MARCH 23 - U.S. Agriculture undersecretary
Daniel Amstutz said it is possible to reach a global agreement
to scale-back agricultural supports in calendar 1988.
    Speaking to a Senate Agriculture Appropriations committee
hearing, Amstutz said "I think we can reach agreement in
calendar 1988."
    Amstutz said the U.S. places a high priority on the Uruguay
round of global trade talks.
    His comments followed a statement by Secretary of State
George Shultz last week urging agriculture be the highest
priority item during the upcoming summit of western heads of
state in Venice, Italy.


.I 14076
.C
earn
.W
CAMPBELL RED LAKE MINES LTD <CRK> QTLY DIV.
    TORONTO, March 23 - 
    Qtly div 10 Canadian cts vs 10 Canadian cts prior
    Pay May 25
    Record April 20


.I 14077
.C
earn
.W
STOKELY USA INC <STKY> REGULAR DIVIDEND SET.
    OCONOMOWOC, WIS., March 23 -
    Qtly div three cts vs three cts previously
    Pay April 15
    Record April One


.I 14079
.C
acq
.W
COOPER SAYS OFFER MUST INCLUDE CLASS A SHARES.
    TORONTO, March 23 - <Cooper Canada Ltd> said it told those
who have expressed interest in acquiring control of the company
that it would entertain no offer unless it were made to holders
both of class A non-voting shares and voting common.


.I 14080
.C
earn
.W
KINGS ROAD ENTERTAINMENT <KREN> 3RD QTR LOSS.
    LOS ANGELES, March 23 - Qtr ended Jan 31
    Shr loss seven cts vs loss 64 cts
    Net loss 367,000 vs loss 3,009,000
    Revs 2,516,000 vs 8,787,000
    Nine mths
    Shr loss 73 cts vs loss 1.17 dlrs
    Net loss 3,545,000 vs loss 4,573,000
    Revs 6,768,000 vs 13.3 mln


.I 14082
.C
earn;acq;
.W
AMERICAN EXPRESS <AXP> APPROVES SHEARSON OFFER.
    New York, March 23 - American Express Co said its board
approved a public offering of about 18 pct of its wholly owned
Shearson Lehman Brothers Inc brokerage unit.
    American Express also approved the previously announced
plan to sell about 13 pct, or 13 mln convertible preferred, of
the unit to Nippon Life insurance co for 538 mln dlrs. The
preferred shares are convertible to the same number of common
shares following Hart-Scott-Rodino and FDIC approvals.
    American Express said it will maintain 60 pct, or 60 mln of
the 100 mln shares of Shearson that will be outstanding.
    American Express said it had agreed with Nippon life that
American Express will hold a minimum of 40 pct of Shearson
until January, 1999.
   American Express said 7.5 mln Shearson shares would be held
by certain employees of Shearson and one mln by a Shearson
stock ownership plan to be formed.
    American Express said it anticipates a registration
statement for the public offering will be filed with the
Securities and Exchange Commission shortly.
    American Express also declared a two-for-one stock split
and raised its quarterly dividend to 38 cts per share from 36
cts on a pre-split basis. Both dividends are payable May 8, to
shareholders of record April 3. There are currently 215 mln
American Express shares outstanding.
    The transaction with Nippon Life remains subject to
approval by the Japanese ministry of finance, which is expected
in April.
    American Express also said an agreement was reached by
Shearson and Nippon Life providing for a joint venture in
London.
    The venture will focus on investment advisory asset
management, market research and consulting on financing. It
also said it expects the relationship to extend to selected
projects involving American Express, Shearson Lehman and Nippon
Life in key financial centers of Asia and other regions, and to
future personnel exchanges.
    Under the agreement, Nippon will receive 13 mln cumulative
preferred shares with a five pct dividend rate. The cumulative
preferred stock will become convertible with voting powers to
an equal number of common shares following the U.S. government
approvals.
    American Express said that assuming conversion of the
preferred stock held by Nippon, 100 mln shares of Shearson
Lehman common stock would be outstanding. For the public
offering, it said there will be an underwriters overallotment
option to purchase 1.8 mln shares.
    American Express will also grant Nippon Life a five-year
warrant to purchase one mln American Express common shares at
100 dlrs per share. There are currently 215 mln American
Express shares outstanding.
    Nippon Life would be entitled to nominate two directors to
the Shearson board and one representative to serve as an
adviser to the American Express board of directors.
    "These proposed transactions are yet another signal that
american express intends to stay in the forefront of the
financial services industry worldwide," said American Express
Chairman James D. Robinson. "The implementation of our plans,
moreover, will enable us to maintain a majority interest in
shearson while enhancing the strength of our balance sheet by
tapping additional capital resources for shearson outside
american express."
Reuter...

.I 14083
.C
earn
.W
STERIVET LABS <STVTF> SETS STOCK SPLIT.
    TORONTO, March 23 - Sterivet Laboratories Ltd said it
authorized a three-for-one split of its common stock.
    The company said the stock split is subject to approval by
its shareholders at its upcoming annual meeting.


.I 14084
.C
money-fx
.W
CHICAGO FUTURES LEADER SAYS MARKETS CAN ADAPT.
    By Nelson Graves,
    BOCA RATON, Fla., March 23 - Foreign currency futures
markets would not be harmed if the leading industrial countries
agreed to restrict currency movements to within a narrow band,
said Leo Melamed, chairman of the Chicago Mercantile
Exchange's, CME, executive committee.
    "The target zone would not affect our market I think at
all.... A 10 pct range in the Deutsche mark gives us a healthy
market," Melamed told Reuters in an interview.
    "We were willing to live in the old Smithsonian era with a
four pct shift," he said, referring to permitted currency
fluctuations in the early 1970s. "One thing you can adjust is to
make each contract a larger value."
    As chairman of the CME in 1969-71, Melamed was instrumental
in the development of currency futures, which now are crucial
to the Chicago exchange.
    Melamed said capital flows -- which he estimated can
approach 200 billion dlrs a day -- would overwhelm efforts by
governments to control currency fluctuations.
    "They can do it for a day, in terms of intervention, an
hour, a week maybe, but not over a period of time. So it's
unrealistic and it doesn't work and it's unnecessary."
    The CME's top policymaker also said a decision by the
exchange to advance the quarterly settlement time of its stock
index futures contract to the morning from the afternoon would
help eliminate dramatic price gyrations in futures and equity
markets on so-called "triple-witching" day.
    "We think that the settlement in the morning will have a
salutary effect so that over a longer period of time I think
this issue (triple witching) will go away because of the change
in the structure as of next June," when the move is scheduled to
go into effect, he said.
    Melamed said proposed changes in floor practices by traders
of the popular Standard and Poor's 500 stock index future would
address complaints of trading abuses and stimulate trading.
    Two weeks ago, the CME board of directors proposed barring
brokers on the top step of the pit from trading for their own
account. The board also proposed requiring brokers engaged in
dual trading elsewhere in the pit to record personal trades to
the nearest minute and curbing trading between broker groups.
    The changes "will in time have an extremely positive effect
on the marketplace. That's going to prove very, very
instrumental in increasing volume over time," he said,
predicting the increase would come within a year.
    Melamed, also chairman of Dellsher Investment Co Inc, said
the CME last week withdrew a proposal to put a 12-point limit
on the S and P 500 index's daily price movement when the
Commodity Futures Trading Commission told the exchange it could
not be a temporary program.
    The CME also received "many negative comments, many more
than we anticipated," Melamed conceded. Many futures commission
merchants predicted sell orders would accelerate in the event
the price approached the bottom limit.


.I 14086
.C
earn
.W
TCBY ENTERPRISES INC <TCBY> 1ST QTR FEB 28 NET.
    LITTLE ROCK, ARK., March 23 -
    Shr eight cts vs five cts
    Net 1,370,898 vs 823,988
    Sales 7,786,730 vs 4,383,825
    Avg shrs 17,744,333 vs 17,071,236
    NOTE: Per-share amounts adjusted for three-for-two stock
splits in April and July, 1986


.I 14088
.C
acq
.W
HECLA <HL> BUYS STAKE IN GREENS CREEK VENTURE.
    DENVER, March 23 - Hecla Mining Co said it agreed to buy a
28 pct stake in the Greens Creek joint venture from Amselco
Minerals Inc, a unit of British Petroleum PLC's <BP> BP North
America Inc unit.
    The Greens Creek venture is engaged in final project
engineering of a gold-silver-lead-zinc ore body on Admiralty
Island, about 15 miles southwest of Juneau, Alaska.
    Hecla said it estimates its total investment in the
project, including its share of production costs, will be about
45 mln dlrs.



.I 14090
.C
earn
.W
SPRINT OPTIMISTIC DESPITE LOSSES.
    By Peter Elsworth
    DALLAS, March 23 - US Sprint, the 50-50 telephone venture
of GTE Corp <GTE> and United Telecommunications Inc <UT> set up
last June, is optimistic despite expecting to report a net loss
of about 500 mln dlrs this year.
     David M. Holland, president of US Sprint's Dallas-based
Southwest Division, told Reuters in an interview that he did
not know what it would report for the first quarter, but agreed
that for the year the company should have about the same
results as last year when it lost "about 500 mln dlrs."
     He noted the company was slated to spend 2.3 billion dlrs
over "two plus years" to set up its network.

    Holland added that Sprint was still paying almost 500 mln
dlrs a year to American Telephone and Telegraph Co (T) in order
to lease its lines.
     He said 16,000 miles of its 23,000 mile fiber optic
telephone line are now "in the ground," and 7,000 miles are
operable.
     By the end of the year, he said, 90 pct of the company's
subscribers will be carried on its fiber optic lines (instead
of leased ATT lines), compared with 60 pct by the end of the
second quarter.
    Fiber optic lines, which send digital light impulses along
microscopic glass lines, is quicker, more accurate and more
economical than traditional copper cables. A fiber optic line
the diameter of a dime can carry the same amount of information
as a copper cable 20 feet in diameter.
     "By the end of the year, we will have the capacity to
carry 50 pct of all U.S. long distance phone calls," Holland
said.
    He said ATT currently controls about 80 pct of the U.S.
long distance market, with MCI Communications Corp <MCIC> about
10 to 12 pct and Sprint five to seven pct.
     Holland said Sprint's rates, which were 50 pct lower than
ATT when it did not pay to gain access to local telephone
exchanges, were now about 10 to 12 pct lower now that all the
companies have equal access. He said the company was cutting
back its advertising by about 30 pct this year.
     At the same time, he said Sprint had increased its total
number of customers to four mln from two mln from July 1986 to
last January.
    "We've captured the fiber high ground, shown the importance
of it," he said.
     Concerning the deregulation of ATT, Holland said he
believed ATT "should be given some flexibility, but should be
regulated on pricing plans."
     "They're so dominant in the market place," he said, adding
that ATT should be deregulated when "there is true competition
in the marketplace."
     "It takes time to prove ourselves and a lot of money," he
said, adding, "maybe two to four years out, it's hard to say."
    Holland said he was not concerned about talk that Sprint's
two owners might be squabbling or that corporate raiders, such
as the Belzberg family in Canada, might be putting pressure on
them to sell off their loss-making Sprint holdings.
     "They are two excellent partners who have stated time and
time again their support of US Sprint," he said, adding that he
was "amazed" at industry talk that the two companies might be
arguing. "There's no evidence of that," he said.
     He said Sprint's progress in such areas as revenues,
number of customers and construction was on track, even "ahead
in many areas."
    Looking beyond the United States, Holland said Sprint
currently had direct access to 34 countries and aimed to be in
90 pct of the Free World nations by 1988.
    "We want to be in every country that ATT serves," he said.
    He said Sprint currently does not have access to Mexico but
was working on it.
     He noted negotiations between Mexico and GTE Sprint, the
forerunner of US Sprint, had been broken off by the September
1985 earthquake which had devastated the nation's telephone
network.


.I 14092
.C
acq
.W
AVALON <AVL> STAKE SOLD BY DELTEC.
    NEW YORK, March 23 - Avalon Corp said that <Deltec
Panamerica SA> has arranged to sell its 23 pct stake in Avalon
and that Deltec's three representatives on Avalon's board had
resigned.
    An Avalon spokeswoman declined to indentify the buyer of
Deltec's stake or give terms of the sale.
    In addition, Avalon said three other directors resigned. It
said Benjamin W. Macdonald, a director of <TMOC Resources Ltd>,
the principal holder of Avalon stock, and Hardwick Simmons, a
vice chairman of Shearson Lehman Bros Inc, were then named to
the board.


.I 14093
.C
acq
.W
QUAKER OATS <OAT> SELLS UNIT TO KEYSTONE.
    SEATTLE, Wash., March 23 - The Quaker Oats Co said it sold
its Vernell's Fine Candies Inc unit to privately-held Keystone
Partners Inc for an undisclosed price.
    The company said Vernells had sales of around 30 mln dlrs
in the year ended in August, 1986.
    Quaker Oats acquired Vernells in August, 1986 when it
purchased Golden Grain Macaroni Co.
   


.I 14095
.C
livestock;carcass;
.W
U.S. TO ASK JAPAN TO DROP BEEF RESTRICTIONS.
    STILLWATER, Okla., March 23 - U.S. Agriculture Secretary
Richard Lyng will ask the Japanese Government to remove all
beef import restrictions when he visits there next month.
    Lyng's remarks came in a speech at Oklahoma State
University today.
    "We think Japanese consumers should have the same freedom
of choice as our consumers. Look at all the Japanese cameras
and tape recorders in this room. We know they'd buy more beef
if they had the opportunity," Lyng said.


.I 14098
.C
earn
.W
CLABIR CORP <CLG> 4TH QTR JAN 31 NET.
    GREENWICH, Conn., March 23 - 
    Shr profit 26 cts vs loss two cts
    Net profit 6,194,000 vs loss 170,000
    Revs 100.0 mln vs 7,854,000
    Avg shrs 10.7 mln vs 8,787,977
    Year
    Shr profit two cts vs loss 17 cts
    Net profit 7,169,000 vs loss 1,461,000
    Revs 421.4 mln vs 51.1 mln
    Avg shrs 9,604,474 vs 8,807,709
   
Reuter...

.I 14099
.C
money-fx
.W
U.K. PROFITTED FROM AUTUMN INTERVENTION - LAWSON.
    LONDON, March 23 - Britain has reaped profits by using a
stronger pound to buy back dollars used by the government last
autumn to support sterling during a currency crisis, Chancellor
of the Exchequer Nigel Lawson said.
    He said in a parliamentary debate, "I can now tell the House
(of Commons) that the dollars that were sold from the reserves
in September and October (1986) have subsequently all been
repurchased - at a profit of some tens of millions of pounds."
    Hindsight had proved him right to resist market pressures
then for a two percentage point interest rate rise, he said.
The increase in base rates was instead limited then to one
point.
    During a debate on the 1987/88 British budget which Lawson
unveiled last week, he said that "during the period of foreign
exchange market turbulence which followed the somewhat
inconclusive Group of Five and Group of Seven meetings at the
end of September, I authorised the Bank of England to intervene
unusually heavily in order to buy breathing space that would
enable me to confine the interest rate rise to one pct rather
than the two pct the market was then pressing for."
    He said that that one percentage point increase, effected
in October 1986, had been reversed by this month's two half
point cuts in banks' base lending rates. They are now at 10
pct.
    Treasury figures show that the underlying change in British
reserves - seen as a guide to possible Bank of England
intervention on foreign exchange markets - suggest that the
authorities sold around 1.0 billion dlrs during September and
October 1986, government sources said.


.I 14100
.C
earn
.W
BAY FINANCIAL CORP <BAY> 3RD QTR FEB 28.
    BOSTON, March 23 -
    Shr loss 1.34 dlrs vs profit two cts
    Net loss 4.5 mln vs profit 46,000
    Revs 7.6 mln vs 8.9 mln
    Nine months
    Shr loss 1.41 dlrs vs loss two cts
    Net loss 4.7 mln vs loss 76,000
    Revs 30.2 mln vs 23.8 mln
    NOTE:1986 includes gain on disposition of investments of
2,454 dlrs in 3rd qtr and 5,306 dlrs in nine months
respectively. 1987 includes gain on disposition of investments
of five dlrs in 3nd qtr and 7,052 dlrs in nine months.


.I 14101
.C
earn
.W
CORRECTED - MANHATTAN NATIONAL<MLC>4TH QTR LOSS.
    NEW YORK, March 23 -
    Oper shr loss 20 cts vs loss 81 cts
    Oper net loss 1,042,000 vs loss 4,077,000
    Revs 38.5 mln vs 50.3 mln
    12 mths
    Oper shr profit six cts vs loss 43 cts
    Oper net profit 336,000 vs loss 2,176,000
    Revs 137.8 mln vs 209.1 mln
    (Company corrects to show profit rather than a loss for
current 12 mths oper shr and oper net.)


.I 14102
.C
earn
.W
AMBRIT INC <ABI> 4TH QTR JAN 31 NET.
    CLEARWATER, Fla., March 23 - 
    Shr 28 cts vs nil
    Net 4,568,000 vs 7,000
    Revs 37.5 mln vs 7,835,000
    Year
    Shr 13 cts vs nil
    Net 5,011,000 vs 30,000
    Revs 145.5 mln vs 51.0 mln
    Note: Current year results includes revs of 87.2 mln dlrs
from Chocolate Co Inc, which was acquired in March 1986.
    Note: Shr results after preferred dividend payments of
954,000 dlrs for current qtr and 3,410,000 dlrs for current
year.
    Net includes gains from sale of investment in Sheraton
Securities International of 5,807,000 dlrs vs 928,000 dlrs for
qtr and 8,705,000 dlrs vs 928,000 dlrs for year.
    Net also includes extraordinary loss from early retirement
of debt of 303,000 dlrs for year-ago 12 mths.


.I 14103
.C
earn
.W
COMMUNICATIONS CORP OF AMERICA 2ND QTR DEC 31.
    DALLAS, March 23 -
    Shr loss 33 cts vs loss 48 cts
    Net loss 1.7 mln vs loss 2.5 mln
    Revs 6.3 mln vs 10.2 mln
    Six months
    Shr loss 54 cts vs loss 75 cts
    Net loss 2.8 mln vs loss 3.9 mln
    Revs 15.2 mln vs 23.4 mln
       


.I 14105
.C
dlr;money-fx;
.W
******Dollar hits record low of 149.78 yen - Tokyo dealers.
Blah blah blah.

.I 14106
.C
ipi
.W
CBI SURVEY POINTS TO SURGE IN U.K. OUTPUT.
    LONDON, March 24 - British manufacturers expect output to
grow rapidly in the four coming months, a Confederation of
British Industry (CBI) survey shows.
    The CBI's monthly trends survey for March shows that 43 pct
of the 1,685 polled U.K. Firms expect to raise output in the
next four months. Only nine pct expect output to fall while 47
pct said production would likely remain unchanged.
    The CBI said the positive balance between firms expecting
production to rise and those forecasting a fall, at 34 pct, was
the highest such figure recorded since 1977.
    In the CBI's February survey, 37 pct of companies expected
a rise in output while 54 pct forecast production would remain
at present levels and eight pct expected production to drop.
    The survey also showed that 23 pct of the polled companies
consider current order books to be above normal while 58 pct
view them as normal and only 19 pct regard them as below
normal.
    This was the highest positive balance since the question
was first asked more than 10 years ago, the CBI said.
    In February, the figures were 24 pct, 22 pct and 54 pct
respectively.
    Companies also rated their export possibilities higher. Of
all polled companies, 23 pct rated their export order books to
be above normal and 53 pct described them as normal while only
23 pct believed export orders were below normal levels.
    In February, 25 pct thought their export books were below
normal and 50 pct believed them to be about normal. At 23 pct,
the proportion of companies rating their export books above
normal was unchanged between February and March.
    On prices, the survey showed that 62 pct of companies
expect average prices at which domestic orders are booked will
remain unchanged in the coming four months, up from 57 pct in
February.
    From 38 pct in February, only 31 pct of firms now expect
prices to rise before July. Six pct forecast prices will fall,
against four pct a month earlier.
    Commenting on the survey, CBI economic situation committee
chairman David Wigglesworth said sterling's more competitive
level against many European currencies had improved exports.
    "But interest rates are still much higher than in our
competitor countries and British manufacturers will still have
to work hard to win new business both in overseas markets and
in the substitution of British-made goods for imports here at
home," he said.


.I 14107
.C
money-fx
.W
******TOKYO - Bank of Japan buys small amount of dollars, dealers said.
Blah blah blah.

.I 14108
.C
money-fx
.W
******Miyazawa says time has come for major nations to act on exchange rates.
Blah blah blah.

.I 14109
.C
money-fx
.W
MAJOR NATIONS MUST ACT ON CURRENCIES - MIYAZAWA.
    TOKYO, March 24 - Finance Minister Kiichi Miyazawa said the
time has come for major industrialised nations to take action
on exchange rates in line with their agreement last month in
Paris.
    In Paris, Britain, Canada, France, Japan, the U.S. And West
Germany agreed to coooperate to hold currency rates around
their then current levels.
    Miyazawa would not say what specific measures major nations
would take, but told reporters the measures had been discussed
in Paris. The dollar fell to a record low against the yen this
morning, piercing the 150 yen barrier.


.I 14111
.C
dlr;money-fx;
.W
******BANK OF JAPAN RE-ENTERS MARKET AND STEPS UP DOLLAR BUYING, DEALERS SAY.
Blah blah blah.

.I 14112
.C
dlr;money-fx;
.W
BANK OF JAPAN STEPS UP DOLLAR BUYING.
    TOKYO, March 24 - The Bank of Japan stepped up its dollar
buying as it re-entered the market after the midday Tokyo lunch
break, dealers said.
    They said the bank seemed more determined to support the
dollar than it did this morning.
    Several dealers said the central bank intervened this
afternoon when the dollar stood around 149 yen.
    One said it purchased 150 to 200 mln dlrs in the half-hour
since the market re-opened after its lunchtime closure. Another
said the bank still has buying orders in the market.


.I 14113
.C
trade
.W
YEUTTER SEES GATT CONSENSUS ON FARM TRADE REFORM.
    By Graham Hillier, Reuters
    TAUPO, New Zealand, March 24 - U.S. Trade Representative
Clayton Yeutter said trade ministers meeting here have reached
a general consensus on agricultural trade reform under the
latest Uruguay round of the General Agreement on Tariffs and
Trade (GATT).
    Yeutter gave no precise details of the understanding but
told journalists the consensus covers the principles involved
in agricultural trade reform and what needs to be done to
improve the global situation in agriculture.
    Delegates from 22 countries are meeting informally to
discuss progress made since the latest GATT round was launched
in Punta del Este, Uruguay, last September.
    Yeutter said "at least people seem to be going down the same
road...But how that translates ultimately into negotiations is
another matter entirely."
    There seems to be an understanding of the need to deal with
the problem quickly and "a more common understanding of how we
are going to get from here to there," Yeutter said.
    However, the hard work is still to come, with a couple of
years of tough negotiations ahead, he said.
    "It is ludicrous for the nations of the world to plough
immense amounts of financial resources into the production of
items that nobody wants to buy," he said.
    He said the long-term answer is to switch some of the
financial resources now committed to agriculture to other more
productive areas. This would help agriculture because some its
inefficient non-productive segments would stop operating, he
said.
    Individual segments in many countries may lose in the
process, but it should result in a more rational system of
world-wide production within 10 or 15 years, he said.
    It is important that the agriculture negotiations reach a
relatively early conclusion because the U.S. Is spending 26
billion dlrs a year and the European Community probably more
than that, which is an ineffective use of financial resources,
he said.
    Asked about the prospect of a priority for agriculture in
the negotiations, he said "one has to be politically
realistic... If there is any chance of getting it (agricultural
trade reform) done in two to three years it's going to have to
be as part of a larger package."


.I 14116
.C
earn
.W
SWIRE SEEN REPORTING 20 PCT RISE IN 1986 PROFIT.
    By Allan Ng, Reuters
    HONG KONG, March 24 - Swire Pacific Ltd <SWPC.HKG> is
likely to show a more than 20 pct rise in 1986 operating
profits when it reports results tomorrow, reflecting gains in
its aviation and property businesses, share analysts said.
    Analysts polled by Reuters estimated after-tax profits from
operations will be between 1.525 billion and 1.8 billion dlrs
compared with 1.23 billion in 1985.
    They also said Swire will have an extraordinary gain of
about 1.38 billion dlrs from the flotation of its Cathay
Pacific Airways Ltd <CAPH.HKG> unit last May.
    Swire had an extraordinary gain of 59.1 mln dlrs in 1985.
    Share analysts said Swire will set a 36 cent final dividend
for its "A" shares, making a total of 54 cents, after 47 cents
adjusted for a two-for-one bonus issue in 1985.
    Aviation and properties together account for 75 pct of the
company's net asset value and about 85 pct of its net profits,
analysts said.
    The company's aviation division consists of its majority
stake in Cathay Pacific Airways Ltd and its 25 pct interest in
<Hongkong Aircraft Engineering Co Ltd>, which is also 25 pct
owned by Cathay.
    Cathay last week reported 1986 profits climbed to 1.23
billion dlrs from 777 mln in 1985, partly because of lower fuel
costs and greater traffic.
    Swire's share of Cathay, which stood at 70 pct before the
flotation, fell to 54.25 pct at the end of last year and has
since slipped to 50.23 pct.
    Hongkong Aircraft reported this month its 1986 net profits
rose 29.5 pct to 115.5 mln dlrs.
    Tony Measor, an analyst at Hong Leong Securities Ltd,
estimates Swire's profits will be 1.525 billion dlrs.
    "Much depends on properties," said Measor. "And they did a lot
better in the second half of the year."
    Estimates of profits from the firm's wholly owned Swire
Properties Ltd unit range widely from 500 mln dlrs to 700 mln
compared with 570 mln dlrs in 1985.
    Swire Properties recorded an interim profit of 120 mln dlrs
for the first half of 1986, well below 260 mln dlrs for the
same 1985 period, but analysts said that was due mainly to the
low level of completion of new residential flats. The firm's
properties consist mainly of the Taikoo Shing residential
development and two luxury housing projects.
    Hoare Govett Asia Ltd said the completion of 1,100 flats in
Taikoo Shing will have yielded profits of 300 mln dlrs in
second-half 1986.
    During the year property prices continued to rise as more
people bought real estate, benefiting from low interest rates,
analysts said.
    "At the end of last year, flats in Taikoo Shing were selling
at 1,100 dlrs per square foot, up by about 20 pct from a year
ago," said Frederick Tsang of Mansion House Securities (F.E.)
Ltd.
    Swire is developing a large commercial and hotel complex in
the central business district of Hong Kong but it will not
provide income until the first stage is completed next year.
    The company also sold three properties and a part interest
in a proposed hotel development, which should result in
extraordinary gains of 60 mln dlrs in 1986, according to James
Capel (Far East) Ltd.
    Swire's trading and manufacturing operations are expected
to earn 300 mln dlrs, up 22 pct from 1985 but its shipping and
offshore services are likely to post a small loss of about 10
mln dlrs because of depressed market conditions.


.I 14117
.C
veg-oil;trade;coconut-oil;
.W
(CORRECTED) - PHILIPPINES CRITICISES EC FOR OIL LEVY.
    TAUPO, New Zealand, March 23 - Philippines Trade and
Industry Secretary Jose Concepcion told world trade ministers
he wondered if their agreement was of any real value after the
European Community (EC) proposed a levy on vegetable oils.
    Concepcion, speaking at an informal meeting of the General
Agreement on Tariffs and Trade (GATT) here, said ministers
declared in Uruguay last September that the trade of
less-developed nations should not be disrupted.
    He said the EC not only ignored Manila's request for lower
tariffs on coconut oil but proposed a levy on vegetable oils
and fats that are vital exports for Southeast Asian countries.
    Concepcion said while the levy might be rejected by the EC
Council of Ministers, he noted that "I cannot help but wonder
whether the agreements we produce in meetings like this are of
any real value."
    He also said industrialised nations saved about 65 billion
U.S. Dlrs in 1985 through low commodity prices, but this had
affected the ability of developing nations to import goods and
services.
    "The health and the growth of world trade requires that the
new development of developing countries losing their share of
world trade be arrested and reversed," he said.


.I 14118
.C
money-fx;trade;reserves;
.W
TAIWAN COMPLAINS ABOUT SIZE OF RESERVES.
    By Chen Chien-kuo, Reuters
    TAIPEI, March 24 - Taiwan's foreign exchange reserves,
swollen by strong trade surpluses to a record 53 billion U.S.
Dlrs, are becoming a problem, government officials said.
    Official figures show the latest level compares with the
previous record of 51 billion dlrs on March 4 and about 26
billion in late March 1986.
    Central bank Governor Chang Chi-cheng told reporters the
increase in reserves was the result of heavy intervention by
the bank on the local interbank market. It bought nearly two
billion U.S. Dlrs between March 5 and 23, he said.
    Wang Chao-ming, vice chairman of the government's Council
for Economic Planning and Development, told Reuters the rising
reserves were "a big headache for Taiwan."
    He said the government expects heavier pressure from the
U.S., Where protectionist bills are being proposed against
nations such as Taiwan and Japan with large trade surpluses
with the U.S.
    Wang said the government would launch new measures within
the next two months to further reduce import tariffs and open
the market wider to foreign products, especially those from the
U.S.
    Wang said the measures aim at helping reduce Taiwan's trade
surplus, which rose to 2.73 billion U.S. Dlrs in the first two
months of 1987 from 2.02 billion a year earlier. Nearly 90 pct
of the surplus was with the U.S.
    Vice Economic Minister Wang Chien-shien agreed with Wang's
remarks and said efforts to avert U.S. Protectionism were
running out of time. "We must do it quickly or face retaliation
from Washington," he said.
    He said the measures would include removal of trade
barriers on insurance and inland services for U.S. Companies.
    Chang Chi-cheng said the central bank could not stop buying
U.S. Dollars because of heavy sales by local exporters who fear
the strong local dollar will cause them exchange losses.
    He said the bank is studying revision of the foreign
exchange rules in hope of further reducing currency controls,
but declined to give details.
    The Taiwan dollar has risen about 15 pct against the U.S.
Dollar since September 1985. It opened at 34.38 to the U.S.
Dollar today and is expected to rise further to 33 in June and
to 32 by end-year, some foreign bankers said.


.I 14119
.C
crude
.W
AUSTRALIAN MINISTER SEES TARGETED OIL TAX STRATEGY.
    SURFERS PARADISE, Australia, March 24 - Australia's crude
oil tax strategy is probably best tackled in terms of a
targeted rather than broadly-based approach, Federal Resources
and Energy Minister Gareth Evans told a meeting here.
    He told the Australian Petroleum Exploration Association
(APEA) annual conference there was a prospect of developing a
package that would recognise the government's economic
priorities while also meeting some of the industry's concerns.
    Evans was referring to a nearly completed government review
of oil taxation.
    Evans said there were plenty of examples where targeted
approaches to oil industry taxation had produced good results
in recent years.
    These include the reduction in the top marginal crude
excise rate on 'old' Bass Strait oil found before September
1975 to 80 pct from 87 pct, and the waiver of excise on onshore
oil announced last September, he said.
    The industry, through the APEA, has been calling for the
elimination of secondary taxation on oil in order to boost
incentives for prospecting against a background of weak prices
and Australia's relatively low exploration levels.
    "While nobody wants to add further unnecessary complexity to
an already complex taxation regime, I am inclined to favour
these kinds of tailored approaches ahead of sweeping changes,
which leave (government) revenue much reduced and may still
leave a lot of uncertainty as to what individual companies are
going to do in major areas," Evans said.
    He said the government did not intend to change its
resource rent taxation (RRT) legislation, now before
parliament, in response to industry calls to allow all
exploration expenditure in a given area to be deductible.
    As previously reported, RRT is a tax of 40 pct limited to
highly prospective offshore areas, based on profits after a
certain rate of return has been achieved for individual
projects.
    APEA has said it is not a true profit-based tax because
exploration deductibility is limited to successful projects.
    Evans said the decision not to change RRT was based more
than anything on the government's desire to ensure the
certainty and stability of the new regime, adding that major
investments have already been planned on the existing ground
rules.


.I 14120
.C
trade
.W
GATT ROUND MAY STOP GROWING TRADE PROBLEMS - U.S.
    TAUPO, New Zealand, March 24 - A successful new GATT
(General Agreement on Tariffs and Trade) round is needed to
halt growing bilateral trade problems between major trading
partners, U.S. Trade Representative Clayton Yeutter said.
    Yeutter, in New Zealand for informal GATT ministerial
talks, told Reuters bilateral trade disputes are increasing
because the multilateral system is inefficient.
    "That is really a strong rationale why we need a new GATT
round," he said. "The very existence of all these bilateral
irritants clearly emphasises the need to develop multilateral
solutions to some of these problems."
    The eighth GATT round of negotiations was launched at Punta
del Este in Uruguay in September 1986. Agriculture and services
were included in the negotiations for the first time.
    The growing debt burden of Latin American and African
nations will also provide impetus for the GATT round to
succeed, he said.
    "Clearly those countries need to develop their export
endeavours and they need open markets for that to happen and
that's the basic objective of the new GATT round," he said.
    But he said the GATT round is a long term endeavour. It
will not give any short term relief for debt ridden countries,
but it will make a difference in 10 to 15 years.
    "It's a worthwhile activity from their standpoint because
these debts are not going to go away in the next year or two,"
he said.
    "They ought to be very strongly supported in the GATT round
as a mechanism for relieving their debt burdens or making
possible debt amortisation in the future," he said.


.I 14121
.C
earn;crude;
.W
SHELL AUSTRALIA REPORTS 45.79 MLN DLR 1986 PROFIT.
    MELBOURNE, March 24 - Royal Dutch/Shell Group <RD.AMS> unit
<Shell Australia Ltd>, said its net profit fell to 45.79 mln
dlrs in 1986 from 66.76 mln in 1985.
    Revenue fell to 4.55 billion dlrs from 4.91 billion, in an
extremely competitive and over-regulated environment, chairman
and chief executive Kevan Gosper said in a statement. A 26.25
mln dlr annual dividend would be paid to the parent after a
very disappointing year.
    "A return of 2.2 pct on funds employed represents a very
meagre return ... In an economy suffering from inflation of
around 10 pct," he said.
    Gosper said the results reflected heavy reliance on
downstream oil and chemicals, poor coal and metal returns and
the financial burden of the North-West Shelf gas project.
    Duties, royalties and taxes rose to 1.37 billion dlrs
against 852.72 mln in 1985 and Gosper urged the government to
move quickly to lift costly and unnecessary regulation.
    "It is just as important for Australia to maintain a
financially healthy, technically advanced refining and
marketing industry as it is to sustain oil exploration and
production," he said.
    "The Australian oil industry has the experience and the
capacity to serve the nation and its shareholders well if the
government would stop putting roadblocks in our way," he said.
    Shell invested 500 mln dlrs over the past five years to
upgrade its oil refining and marketing business, but further
investment required an appropriate rate of return, he said.
    Exploration and evaluation spending in 1986 fell to 18.77
mln dlrs from 26.35 mln, while investment in property and plant
rose to 374.25 mln from 353.94 mln a year earlier.
    Gosper said oil companies would be under intense pressure
in 1987 because of forecast slow economic growth.


.I 14123
.C
trade
.W
NAKASONE INTERVENES IN MICROCHIP DISPUTE WITH U.S.
    TOKYO, March 24 - Prime Minister Yasuhiro Nakasone
intervened to try to resolve Japan's escalating dispute with
the U.S. Over semiconductor trade, government officials said.
    At today's Cabinet meeting, Nakasone told Trade and
Industry Minister Hajime Tamura to redouble his efforts to calm
U.S. Anger over what it sees as Japan's unfair trade practices
in semiconductors.
    Nakasone intervened only two days before a scheduled
meeting of the Reagan administration's Economic Policy Council
to consider whether Japan is reneging on its microchip pact
with the U.S.
    That pact, agreed last year after months of negotiations,
calls on Japan to stop selling cut-price chips in world markets
and to raise its imports of U.S. Semiconductors.
    Senior U.S. Officials have accused Tokyo of failing to live
up to the accord and have threatened retaliatory action.
    Yesterday, Tamura's Ministry of International Trade and
Industry (MITI) launched a last-ditch attempt to salvage the
pact by writing letters to U.S. Policy makers setting out
Japan's case and telling Japanese chip makers to cut output.
    In his letter, the contents of which were released today,
Tamura said a MITI survey carried out at the beginning of March
showed Japanese producers were not selling at cut-rate prices
in Asian markets.
    In a separate letter sent to senior U.S. Officials, MITI
vice minister for international affairs Makoto Kuroda suggested
the two countries could conduct a joint investigation into
allegations of Japanese chip dumping in such markets.


.I 14124
.C
rubber
.W
NORTHEAST, EASTERN THAILAND FACE SEVERE DROUGHT.
    BANGKOK, March 24 - Thirteen provinces, mainly in northeast
and eastern Thailand, have been suffering a worse than average
drought since mid-February and the dry spell is expected to
last until early May, Deputy Interior Minister Santi
Chaiviratana said.
    Santi told reporters the government is launching a drought
relief operation mainly involving the use of water trucks to
send water to affected farming areas.
    He did not say what crops have been damaged in northeast
Thailand but said large durian orchards in eastern Chanthaburi
province have suffered heavy losses.
    The Minister said the affected areas include eight
provinces in the northeast, two in eastern Thailand and three
rubber growing provinces in the south near the Malaysian
border.


.I 14125
.C
wheat;grain;
.W
U.K., AUSTRALIA OFFER WHEAT TO BANGLADESH.
    DHAKA, March 24 - Britain and Australia have offered a
total of 129,250 tonnes of wheat to Bangladesh as grants to
contain rising cereal prices and help support rural employment
projects, officials said.
    They said 79,250 tonnes of wheat promised by Britain would
be shipped next week and used for the government's "Food for
Work" program in the villages.
    Under the program, workers building roads, digging
irrigation canals and engaged in other rural development
activities get their daily wages in wheat instead of money.
    The 50,000 tonnes of Australian wheat would arrive in
Bangladesh next month and be sold under open-market operations
designed to stop price increases, the officials said.
    Prices of rice and wheat have risen at least 15 pct in the
past month, market sources said. But the government expects
prices to fall after the wheat harvest next month.


.I 14126
.C
money-fx
.W
******Sumita says Bank of Japan will intervene if necessary.
Blah blah blah.

.I 14127
.C
crude
.W
WORLD BANK CHIEF PLEDGES SUPPORT TO INDONESIA.
    JAKARTA, March 24 - World Bank president Barber Conable
pledged the Bank's support to help Indonesia adjust to lower
world oil prices, but said further deregulation of its
protected economy was needed.
    Speaking to reporters after talks with President Suharto,
he said he expected Jakarta to do more to liberalise the
economy and deregulate trade policy.
    Indonesia, hurt by the fall in oil prices last year which
cut the value of its crude exports in half, is the Third
World's sixth largest debtor. It has received 10.7 billion dlrs
from the World Bank in the past 20 years.
    Conable said the World Bank, which granted Indonesia a 300
mln dlr loan last month to help its balance of payments, was
prepared to back Jakarta in taking the right steps to adjust to
lower oil and primary commodity prices.
    "We are prepared to support those steps which we believe are
consistent with the development of the Indonesian economy," he
said.
    He said Jakarta's willingness to move quickly after last
year's collapse in oil price saved Indonesia from some of the
difficulties now faced by other countries.
    Indonesia devalued its currency by 31 pct against the
dollar in September to avoid a balance of payments crisis, and
has announced a series of measures since May intended to
stimulate exports, encourage foreign investment and revitalise
the economy.
    However, key monopolies in areas like steel and plastics
and high tariff barriers remain in place.
    Conable arrived in Indonesia on Saturday and has since met
14 Indonesian cabinet ministers to review the country's
borrowing needs and the impact of falling oil prices on the
country.


.I 14128
.C
money-fx
.W
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY.
    TOKYO, March 24 - Bank of Japan Governor Satoshi Sumita
said in a statement the central bank will intervene in foreign
exchange markets to stabilise exchange rates if necessary in
close cooperation with other major industrial nations.
    Sumita said the Bank will take adequate measures including
market intervention, if necessary, in line with the February 22
Paris agreement by six major industrial nations.
    Canada, Britain, France, Japan, the U.S. And West Germany
agreed to cooperate in stabilising exchange rates around
current levels. Sumita's statement was issued after the dollar
slipped below 150 yen to hit a record low of 148.40.
    "It is inevitable that exchange rates fluctuate under the
system of floating rates," Sumita said.
    The fact the dollar plunged below 150 yen does not mean
anything significant under the floating system, he said.
    The six nations agreed in Paris exchange rates prevailing
then were broadly consistent with underlying economic
fundamentals and further substantial rate shifts could damage
growth and adjustment prospects in their countries, the Paris
statement said.


.I 14129
.C
trade
.W
YEUTTER SAYS U.S.-JAPAN TRADE DIFFICULTIES REMAIN.
    TAUPO, New Zealand, March 24 - U.S. Trade Representative
Clayton Yeutter said he was unsure whether some of the trade
issues straining U.S.-Japanese relations would be resolved
before the two countries open trade talks in late April.
    "We are having high level discussions on them (the issues)
within the United States...The relationship on some of those is
very strained between us (Japan) at the moment and we need to
relieve those strains at the earliest possible date," he said.
    "I am not sure we can wait until late April," he added.
    Yeutter is in New Zealand for a two-day informal meeting of
trade ministers who are reviewing the Uruguay round of the
General Agreement on Trade and Tariffs (GATT).
    He said he will meet the Japanese delegation over the next
few days but declined to discuss methods of relieving the
strain between the two countries.
    Yeutter said earlier the three most contentious trade
issues were semiconductors, Japanese government unwillingness
to allow public entities to buy U.S. Super-computers and the
barring of U.S. Firms from the eight billion U.S. Dlr Kansai
airport project near Osaka.
    The Japanese delegation to the GATT talks said in a
statement yesterday they are making major efforts to dismantle
trade barriers in their country.
    "I am convinced that they are attempting to move their
policies in the right direction. The question is how far and
how fast," Yeutter said.


.I 14130
.C
earn
.W
******P AND O 1986 PRETAX PROFIT 174.1 MLN STG VS 125.6 MLN.
Blah blah blah.

.I 14131
.C
crude
.W
KUWAIT SAYS OPEC 2.4 MLN BPD BELOW CEILING.
    KUWAIT, March 24 - Kuwaiti oil minister Sheikh Ali
al-Khalifa al-Sabah said OPEC was producing well below its oil
output ceiling and this would help prices move higher,
according to a Kuwaiti newspaper interview.
    The al-Rai al-Aam newspaper quoted him as saying OPEC was
pumping 2.4 mln barrels per day (bpd) less than its 15.8 mln
bpd ceiling, while consumers were drawing down their petroleum
stocks at a rate of 4.5 mln bpd.
    As long as OPEC maintains its output curbs, demand for its
oil will rise in April and May, Sheikh Ali said, adding that
Kuwait was strongly committed to its OPEC quota.


.I 14132
.C
earn
.W
PENINSULAR AND ORIENTAL 1986 YEAR.
    LONDON, March 24 -
    Earnings per one stg of deferred stock 41.7p vs 34.9
    Div 11.5p making 19.0 vs 16.0
    Turnover 1.95 billion stg vs 1.63 billion
    Pretax profit 174.1 mln vs 125.6 mln
    Tax 49.4 mln vs 34.9 mln
    NOTE - Company's full name is Peninsular and Oriental Steam
Navigation Co Plc <PORL.L>
    Net operating costs 1.77 billion stg vs 1.51 billion
    Share of profits of associates 21.1 mln vs 37.9 mln
    Operating profit 206.3 mln vs 154.2 mln
    Investment income 1.7 mln vs 3.6 mln
    Net interest payable 29.5 mln vs 29.2 mln
    Employee profit sharing 4.4 mln vs 3.0 mln
    Minority interests 2.5 mln debit vs 2.4 mln debit
    Extraordinary items 29.8 mln credit vs 0.1 mln credit
    Group operating profit includes -
    Service industries 40.7 mln vs 34.4 mln
    Passenger shipping 19.5 mln vs 13.1 mln
    Housebuilding, construction/development 50.1 mln vs 30.0
mln
    Container and bulk shipping 43.8 mln vs 34.4 mln
    P and O Australia 6.6 mln vs 9.4 mln
    Banking nil vs 7.7 mln
    Investment property income 45.6 mln vs 25.2 mln


.I 14133
.C
earn
.W
******Woolworth Holdings pretax profit 115.3 mln stg vs 81.3 mln, year to end-January.
Blah blah blah.

.I 14134
.C
grain
.W
CHINA SAYS POSSIBLE GOOD HARVEST DESPITE DROUGHT.
    PEKING, March 24 - China's summer grain harvest may be good
despite a serious drought because the State Council (cabinet)
has spent one billion yuan on irrigation and other anti-drought
work, a Hong Kong newspaper said.
    Wen Hui Bao said the drought, which has affected Shanxi,
Hebei, Henan and Shandong the most, has eased with March rains
in south China and March snowfall in the north and as some new
irrigation projects have come into use.
    "If the drought does not worsen, there is hope for a bumper
harvest," it quoted experts of the Ministry of Electric Power as
saying. They gave no figures.
    The 1986 summer grain harvest was a record 93 mln tonnes,
up from 92 mln in 1985, out of a total 1986 grain harvest of
391 mln. The 1987 target is 405 mln.


.I 14135
.C
earn
.W
WOOLWORTH HOLDINGS PLC <WLUK.L> YR TO END-JANUARY.
    LONDON, March 24 -
    Shr 47.1p vs 37.7
    Shr fully diluted 42.2p vs 33.6
    Div 11p vs 7 making 16 vs 10
    Turnover 1.83 billion stg vs 1.76 billion
    Pretax profit 115.3 mln vs 81.3 mln
    Tax 30.5 mln vs 16.2 mln
    Retail profit -
    B and Q 45.5 mln vs 33.1 mln
    Comet 17.4 mln vs 11.9 mln
    Woolworth 38.7 mln vs 17.6 mln
    Other 4.6 mln loss vs 600,000 loss
    Property income 49.4 mln vs 48.0 mln
    Net interest payable 31.1 mln vs 28.7 mln
    Extraordinary debit 16.0 mln vs 29.1 mln


.I 14136
.C
acq
.W
TMOC TELLS SHAREHOLDERS NOT TO ACCEPT SANTOS BID.
    BRISBANE, March 24 - <TMOC Resources Ltd> told shareholders
not to accept Santos Ltd's <STOS.S> 4.00 dlr a share takeover
bid pending advice from Macquarie Hill Samuel Corporate
Services, its corporate advisor.
    It said in a statement the Santos bid was below the
underlying value of the shares as assessed by Macquarie Hill
Samuel at between 4.08 dlrs and 4.72.
    TMOC, formerly the Moonie Oil Co Ltd, said the valuation
was made in response to an earlier and still current bid of
2.55 dlrs a share by <Elders Resources Ltd>. Elders Resources
holds 19.9 pct of TMOC's 62 mln shares.
    TMOC said it did not know Elders Resources' response to the
bid or that of its other major shareholder the <Australian Gas
Light Co>. The latter has a 10.5 pct stake in TMOC.
    <Avalon Corp> of the U.S. Has a 17 pct stake in TMOC
through an option agreement.
    Santos, which is 15 pct owned by Elders Resources,
yesterday said its bid valued TMOC at 248.5 mln dlrs.
    TMOC said today this was not a premium over the share price
before the bid and that TMOC had traded at up to 4.06 dlrs a
share in the last two weeks.
    TMOC said in the statement that the bid was unsolicited and
that Santos had only a 3.07 pct stake despite paying up to four
dlrs a share on-market.
    TMOC has oil and gas interests and pipelines which
complement the operations of Santos, the major Cooper Basin oil
and gas producer.
    TMOC shares today closed five cents up at 4.15 dlrs on
turnover of 182,000 shares while Santos, due to release its
profit result today, rose eight cents to 4.50 dlrs on volume of
245,000 shares.


.I 14137
.C
earn
.W
******SANTOS LTD <STOS.S> YEAR END DEC 31 NET PROFIT 88.67 DLRS VS 144.04 MLN.
Blah blah blah.

.I 14138
.C
acq
.W
******WILLIAMS HOLDINGS SAYS IT BIDDING 542.2 MLN STG FOR NORCROS ORDINARY SHARES.
Blah blah blah.

.I 14139
.C
acq
.W
WILLIAMS HOLDINGS BIDS 542.2 MLN STG FOR NORCROS.
    LONDON, March 24 - Industrial holding company Williams
Holdings Plc said it was bidding 542.2 mln stg for the ordinary
shares of building products and packaging group Norcros Plc.
    The offer would be made on the basis of 29 new Williams
shares for every 50 in Norcros, or 432.7p a share
    Norcros shares firmed to 410p at 0914 GMT from a close last
night of 397p.
    A statement by Williams said it was confident of the merits
of the proposed merger and it had therefore taken care to
propose from the outset the right terms, including a full cash
alternative.
    The offer will include a partial convertible alternative
under which shareholders would receive up to a total of 205.69
mln new second convertible shares in Williams instead of their
ordinary share allocations.
    The offer for Norcros preferential shares offers one
Williams preferential share for each one of Norcros, for a
value of 130p each and a total of 2.9 mln stg.
    Last week Williams reported that pretax profits for 1986
rose to 22.9 mln stg from 6.3 mln.
    Speculation about a bid for Norcros had been circulating in
the market for several months, dealers said. Initially it
centred on <Bunzl Plc>, which once held a 2.6 pct stake, then
switched to Williams when it began accumulating shares.
    Earlier this year, Williams suggested holding talks with
Norcros on a possible merger but was rebuffed by Norcros which
replied that any benefits that could be achieved could also
result from normal trading.
    In the six months to end-September, Norcros reported a rise
in pretax profits to 20.14 mln stg from 18.55 mln on turnover
that lifted to 311.82 mln from 303.91 mln
    Williams Holdings began expanding from 1982 when it had a
market capitalisation of around one mln stg. A series of
acquisitions in the next four years has pushed its
capitalisation up to around 380 mln.
    The convertible offer would be on the basis of four
Williams convertibles for every Norcros share, worth 428p a
share. The cash alternative would offer the equivalent of
400.2p a share.
    The announcement of the bid pushed Williams share price
down to 733p from last night's close at 750p.
    Williams said it held a total 850,000 shares in Norcros, or
0.7 pct, while an associate held a further 1.99 mln or 1.6 pct.
    There was no immediate response from Norcros.


.I 14140
.C
earn
.W
SANTOS LTD <STOS.S> YEAR ENDING DEC 31.
    ADELAIDE, March 24 -
    Shr 37.0 cents vs 60.0
    Final div deferred vs 11 cents (1985 full year 20.0)
    Pre-tax 171.05 mln vs 239.97 mln
    Net 88.67 mln vs 144.04 mln
    Turnover 400.42 mln vs 506.51 mln
    Other income 85.44 mln vs 71.04 mln
    Shrs 238.99 vs same.
    NOTE - Final div deferred for tax advantage until after
July 1 but not expected to be less than nine cents (interim
seven). Net after tax 82.38 mln vs 95.92 mln, depreciation and
amortisation 93.29 mln vs 76.19 mln, interest 90.94 mln vs
116.49 mln, minorities nil vs loss 10,000 but before
extraordinary loss 6.49 mln vs loss 53.40 mln.


.I 14142
.C
dlr;money-fx;
.W
DOUBTS ABOUT ACCORD SEEN WEAKENING DOLLAR FURTHER.
    By Kunio Inoue, Reuters
    TOKYO, March 24 - The dollar is expected to decline further
in coming days as scepticism mounts about the effectiveness of
last month's Paris accord to stabilise currency exchange rates,
senior foreign exchange dealers said.
    Following its fall today to a record 148.40 yen, dealers
said they expect the dollar to establish a new trading range of
147 to 150 yen before the market again tries to push it down.
Behind the latest dollar fall lies the belief that last month's
accord was no longer enough to stop operators pushing the
dollar down, the dealers said.
    "The recent remark by U.S. Treasury Secretary James Baker
that the Paris accord did not set any target ranges for major
currencies has cast a shadow on the agreement," said Koji
Kidokoro, general manager of Mitsui Bank Ltd's treasury
division.
    He said the market interpreted this as indicating the U.S.
Would favour a weaker dollar and it had little intention of
intervening to support the currency.
    "This eliminated the widespread market caution against
possible joint central bank intervention," Kidokoro said.
    Dealers said the dollar had gathered renewed downward
momentum and that Bank of Japan intervention alone could hardly
contain a further slide in the currency.
    They said the central bank bought between one to 1.5
billion dlrs today, including direct purchases through brokers,
and yesterday it might have bought a small amount of dollars
through the U.S. Central bank in New York.
    Most dealers said they doubted the U.S. Federal Reserve
would intervene on its own account to support the dollar, but
some said this might occur if the dollar fell much below 148
yen.
    "If the dollar drops to that low level, it could reduce the
flow of foreign capital into U.S. Securities, which the
Americans don't want," said Haruya Uehara, chief money market
manager of Mitsubishi Trust and Banking Corp.
    He said the dollar may return to around 152 yen next month
when corporations reduce their dollar sales after they close
their books for the 1986/87 business year ending on March 31.
    But dealers said the longer-term outlook for the dollar
remained bearish. This was due to the lacklustre performance of
the U.S. Economy, the continuing U.S. Trade deficit and
Japanese delays in announcing an economic stimulation package.
    "The Americans are getting frustrated at Japan's inertia in
stimulating its economy," said Hirozumi Tanaka, assistant
general manager of Dai-Ichi Kangyo Bank Ltd's international
treasury division.
    In the Paris currency accord Japan promised a package of
economic measures, after the fiscal 1987 budget was passed, to
boost domestic demand, increase imports, and thus reduce its
trade surplus. The package was expected in April, but debate on
the budget has been delayed by an opposition boycott of
parliamentary business over the proposed introduction of a
sales tax.
    In the circumstances the government had only a slim chance
of producing a meaningful economic package in the near future,
Dai-Ichi Kangyo's Tanaka said.
    Dealers said if steps are not taken to stimulate the
Japanese economy protectionist sentiment in the U.S. Congress
would grow and put more downward pressure on the dollar.


.I 14144
.C
crude
.W
AUSTRALIAN OIL INDUSTRY TO CONTINUE TAX CAMPAIGN.
    SURFERS PARADISE, Australia, March 24 - The council of the
Australian Petroleum Exploration Association (APEA) said it
will press on with its campaign for major improvements to
Australia's petroleum taxation structure.
    The council said in a statement the industry was bitterly
disappointed by the Australian government's position on
taxation, as presented in a speech by Resources and Energy
Minister Gareth Evans to the APEA conference.
    As earlier reported, Evans said he was inclined to target
any tax changes rather than take a broad-based approach to
secondary taxation of petroleum.
    APEA had expected the government to make positive responses
to detailed industry submissions seeking the removal of
existing secondary tax disincentives to exploration and
development, the council said.
    It said it plans to reply in detail to issues raised by
Evans, but its immediate concern was the decision to proceed
with the current resource rental tax (RRT) legislation.
    Evans told the conference the government did not plan to
accept industry pleas for changes in the legislation to allow
deductibility of unsuccessful exploration expenditure.
    "The government's unwillingness to allow the deduction of
unsuccessful exploration expenditure within the whole offshore
area in which RRT applies negates any claim that the tax is
profit based," the APEA council said.
    The government missed a major opportunity to persuade oil
exploration companies that it had realistic answers to the
industry's concerns, despite its recognition of the industry's
problems, the council said.
    The industry has called for the end of all discriminatory
secondary taxation of petroleum, citing them as major
disincentives at a time of low oil prices.


.I 14145
.C
trade
.W
GERMAN FEBRUARY IMPORT PRICES FALL.
    WIESBADEN, March 24 - Import prices in West Germany fell
0.7 pct in February from January to stand 15.6 pct below their
level in February 1986, the Federal Statistics Office said.
    In January the import price index, base 1980, was unchanged
compared with December but 17.8 pct lower against January 1986.
    February export prices, same base as import prices, were
unchanged compared with January and 2.5 pct lower than in
February 1986.
    In January export prices fell 0.3 pct against December to
stand 3.0 pct lower than in January 1986.


.I 14149
.C
acq
.W
NIPPON LIFE, SHEARSON TIE-UP SEEN SETTING TREND.
    By Steven Brull, Reuters
    TOKYO, March 24 - Nippon Life Insurance Co's 538 mln dlr
purchase of a 13 pct stake in Shearson Lehman Brothers Inc
brokerage unit is a shrewd move that other Japanese insurers
are likely to follow, securities analysts said.
    The investment in one of Wall Street's top brokerage houses
is likely to pay off in dollars and international market
position, they said. "It's part of a trend towards growing
capital participation by Japanese insurance firms in foreign
financial institutions," said Simon Smithson, an analyst with
Kleinwort Benson International Inc in Tokyo.
    The investment in Shearson Lehman, a growing firm described
by some analysts as the top U.S. Retail brokerage, will give
Nippon Life a ringside seat and possibly lower commissions on
Wall Street, where it invests an increasing percentage of its
assets of 90.2 billion dlrs, they said.
    Nippon Life staff will also acquire expertise in business
sectors which have not yet opened up in Japan, they added.
    The agreement between the two companies calls for a 50-50
joint venture in London focussing on investment advisory asset
management, market research, and consulting on financing.
    Nippon Life is Japan's largest insurance company and the
world's biggest institutional investor, analysts said.
    The Japanese finance ministry is expected to approve the
deal in April, making Nippon Life the first Japanese life
insurance firm to take a stake in a U.S. Financial firm.
    The limit on foreign assets as a proportion of Japanese
insurers' assets was increased to 25 pct from 10 pct last year.
Since then, they have stepped up purchases of foreign stocks
and sought to deepen their understandng of foreign markets and
instruments.
    Last year, a Sumitomo Life Insurance Co official was
appointed to E.F. Hutton Group Inc unit E.F. Hutton and Co's
board and Sumitomo Bank Ltd spent 500 mln dlrs to become a
limited partner in Goldman, Sachs and Co.
    Smithson said Japanese banks started buying smaller and
problem-plagued banks in 1984. "But now Japanese are going for
blue-chip organisations," he said.
    "It's a reflection of what has happened in manufacturing
industries," said Brian Waterhouse at James Capel and Co. "With a
historically high yen, and historically low interest rates,
there's an increasing disincentive to invest in Japan."
    Competition in fund management has grown along with greater
Japanese savings. The typical salaried employee has 7.33 mln
yen in savings, reflecting an annual average savings rate of 17
to 18 pct, he said.
    To stay competitive, fund managers must invest overseas and
gain experience with financial instruments which are likely to
spread to Japan with further deregulation. "The high regulatory
environment has delayed (life insurance firms')
diversification. Now there's a growing number of new products
in an environment of increasing competition for performance on
fund management," Smithson said.


.I 14150
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 300 MLN STG.
    LONDON, March 24 - The Bank of England said it forecast a
shortage of around 300 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 338 mln stg while bankers' balances below target will take
out around 25 mln stg.
    Partly offsetting these outflows, a fall in note
circulation and exchequer transactions will add some 45 mln stg
and 25 mln stg to the system respectively.


.I 14151
.C
earn;crude;nat-gas;
.W
SANTOS SAYS PROFITS HIT BY OIL PRICE FALL.
    ADELAIDE, March 24 - Leading Australian onshore oil and gas
producer, Santos Ltd <STOS.S>, said its 1986 results were hit
by sharp reductions in prices for crude oil, condensate and
liquefied petroleum gas (LPG).
    The Cooper Basin producer earlier reported a fall in net
profit to 88.67 mln dlrs from 144.04 mln in 1985.
    Santos chairman Sir Brian Massy-Greene said in a statement
that increased production, particularly of oil and LPG, along
with reduced operating costs and reduced or deferred oil
exploration and development outlays, were helping Santos deal
with an adverse business climate.
    Santos said it remained financially strong with an
injection of 84 mln dlrs from the second instalment of a 1985
rights issue, and had cash reserves of 381.3 mln dlrs at the
end of 1986 against 401.9 mln a year earlier.
    It said it had also made significant progress in repaying
debts and at year end the ratio of debt to shareholders' funds
had fallen to 1.01 from 1.54.
    Santos yesterday announced a 4.00 dlr a share takeover bid
for the 96.93 pct it did not already hold in oil and gas
company <TMOC Resources Ltd> -- valuing the target at 248.5 mln
dlrs.
    Santos said 75 pct of its loans were U.S. Dollar
denominated and significant currency purchases were made during
the year to maintain that natural hedge. At year end it held
145 mln U.S. Dlrs, enough to meet all 1987 repayments.
    Santos said it had a successful gas exploration program,
finding 172 billion cubic feet in South Australia, but oil
exploration was less successful with 1.62 mln barrels added to
reserves -- less than depletion during the year.
    Cooper Basin producers are committed to a two-year scheme
to double gas exploration while Santos said its 1987 budget for
oil exploration had been boosted 20 pct.
    Santos said the outlook for 1987 depended on prices and
production volumes but with extra oil exploration and
encouraging gas finds there were grounds for optimism.
    But it called on the goverment to continue fostering
domestic producers through the Import Parity Price scheme.
    "It makes no sense to abandon this policy now when
exploration is at its lowest level for many years and when
Australia's oil self-sufficency is expected to decline rapidly,"
Massy-Green said.


.I 14153
.C
earn
.W
P AND O PLANS WARRANT ISSUE TO MARK ANNIVERSARY.
    LONDON, March 24 - Peninsular and Oriental Steam Navigation
Co Plc <PORL.L>, P and O, said it plans a free warrant issue on
the basis of 10 warrants for every 150 stg nominal of deferred
stock already held, to mark the 150th anniversary of the
company.
    Each warrant will give the right to subscribe for one stg
nominal of deferred stock at 750p during a specified period in
the five years starting in 1988.
    P and O deferred shares were last quoted at 629p, down 1p
since yesterday, after the company reported 1986 pre-tax profit
of 174.1 mln stg against 125.6 mln for 1985.
    P and O said 1986 produced an acceptable level of growth,
though ground has to be made up in one or two areas.
    The company has a strong balance sheet and considerable
flexibility for 1987, it added. P and O will concentrate on
expanding in its established market sectors.
    Commenting on the recent ferry disaster in the North Sea
off Zeebrugge, the statement said the precise cause is unknown.
The company has instituted an immediate investigation and both
the British and Belgian governments are conducting inquiries.
    The stricken ferry, the Herald of Free Enterprise, belongs
to Townsend Thoresen, which became part of P and O in January.
    P and O is considering listing its shares in Japan and
other important overseas financial centres, the statement
added.


.I 14156
.C
trade
.W
CANADA OUTLINES GATT AGRICULTURAL REFORM PLAN.
    TAUPO, New Zealand, March 24 - Canadian Trade Minister Pat
Carney said that agricultural policies should not hurt world
international trade and should therefore become more price
responsive over time.
    She told delegates at the informal meeting of trade
ministers that this was one of five principles Canada wanted
adopted in reforming agriculture in the General Agreement on
Tariffs and Trade (GATT). Secondly, support for agriculture
should avoid production incentives, and thirdly, countries
should freeze and seek to reduce government aid measures that
distorted world prices, Carney said.
    Carney said the fourth principle was that countries should
not introduce new import barriers not mandated by existing
legislation and the fifth was that these basic principles must
be implemented collectively.
    Carney later told Reuters the Canadian guidelines are
basically compatible with the seven point Australian proposals
announced in Davos, Switzerland, in January.
    European trade sources said the conference welcomed the
Canadian initiative but some delegates, and not only the
European Community, voiced reservations about some of the
principles.
    Carney said there was a lot of political will among the
ministers here to complete the Uruguay Round of GATT in under
four years and that there is also a realisation that it has to
be done in a balanced way.
    "The consensus view was to proceed as fast as we can on a
broad front and see what areas emerge where we can get early
conclusion," she said.
    However, the meeting did not identify what those areas are,
Carney said.  She said Canada/U.S. Bilateral trade
negotiations, which must be concluded at least in draft form by
October, are progressing well.


.I 14157
.C
money-supply
.W
TAIWAN ISSUES MORE CERTIFICATES OF DEPOSITS.
    TAIPEI, March 24 - The Central Bank said it issued 4.96
billion dlrs worth of certificates of deposit (CDs) today,
after issuing 4.03 billion of similar CDs yesterday, bringing
the total value of CD issues in 1987 to 139.46 billion.
    The new CDs, with maturities of six months, one year and
two years, carry interest rates ranging from 4.07 pct to 5.12
pct, a bank official told Reuters.
    The issues are designed to help curb the growth of m-1b
money supply, which is expanding as a result of large foreign
exchange reserves.
    The reserves hit a record 53 billion U.S. Dlrs yesterday.


.I 14158
.C
trade
.W
PHILIPPINE TRADE SECRETARY PLEASED WITH GATT TALKS.
    By Christopher Pritchett, Reuters
    TAUPO, New Zealand, March 24 - Philippine Secretary of
Trade and Industry Jose Concepcion, who two days ago expressed
doubts about agreements produced at international conferences,
said he was pleased with the latest gathering here.
    Concepcion told Reuters in an interview that the informal
General Agreement on Tariffs and Trade (GATT) meeting gave
ministers from more than 20 nations the chance to examine
issues with which GATT did not have the political will to deal.
    "Also, the role of the developing countries has been
emphasised in this particular meeting. Somehow it has been the
perception of developing countries that GATT is a club of rich
countries," he added in an interview with Reuters.
    "In fact many of the issues that have been tabled for
discussion (in the Uruguay round of trade negotiations) will be
of more benefit to the developed countries," he said.
    Concepcion said at the start of the Taupo meeting that the
Uruguay round was meant to be a "shining act of faith" in the
world trade system.
    Concepcion said the Philippines would address the issues of
trade in tropical fruit and the improvement of GATT machinery
to make it more responsive.
    He said tropical fruit came from developing countries but
faced non-tariff barriers, quantitative restrictions or very
high duties in other nations. Concepcion named Japan and South
Korea as examples.
    He said he would go to Wellington for talks with New
Zealand, which had a surplus in trade with the Philippines, to
encourage it to switch imports from other countries. He noted
that New Zealand bought its bananas from Ecuador.


.I 14159
.C
rubber
.W
DROUGHT HITS THAI RUBBER AND FRUIT GROWERS.
    BANGKOK, March 24 - A drought that began seven weeks ago is
hurting orchards and rubber plantations in Thailand and
officials said it could last until May.
    The government is trucking water into parched farms in
parts of northeastern, eastern and southern provinces, but not
enough to satisfy farmers, according to press reports.
    There has been no official estimate of damage.
    Officials of Thailand's rain-making institute said its
airplanes could help little because few clouds were forming for
them to seed with rain-making chemicals. Thailand has a rainy
season that normally starts in May and lasts to October.


.I 14162
.C
money-fx
.W
MIYAZAWA SAYS U.S. LIKELY TO INTERVENE.
    TOKYO, March 24 - Finance Minister Kiichi Miyazawa told
Parliament's Lower House Finance Committee that the U.S. Is
expected to intervene in the foreign exchange market to
stabilise exchange rates, political sources said.
    Asked if the U.S. Federal Reserve Board agreed in Paris
last month to intervene to stabilise exchange rates, Miyazawa
said yes, the sources said.
    Miyazawa was also quoted as saying that he is sceptical
about the effectiveness of currency reference ranges even if
major nations agree on such an idea as it is extremely
difficult to set such ranges.


.I 14164
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earn
.W
******British Aerospace 1986 pretax profit 182.2 mln stg vs 150.5 mln.
Blah blah blah.

.I 14165
.C
earn
.W
BRITISH AEROSPACE PLC <BAEL.L> 1986 YEAR.
    LONDON, March 24 -
    Shr 51.4p vs 56.4p
    Div 11.0p making 17.4p, a 10 pct increase on 1985
    Turnover 3.14 billion stg vs 2.65 billion
    Pretax profit 182.2 mln vs 150.5 mln
    Tax 53.8 mln vs 23.5 mln
    Note - comparisons restated.
    Trading profit 217.2 mln vs 211.1 mln
    Launching costs 47.6 mln vs 51.6 mln
    Share of profit of related companies 3.6 mln vs 3.4 mln
    Net interest receivable 9.0 mln vs 12.4 mln payable
    Extraordinary debit 44.1 mln vs nil
    Trading profit includes  -
    Civil aircraft 7.7 mln loss vs 2.5 mln loss
    Military aircraft and support services 146.0 mln vs 148.3
mln
    Guided weapon and electronic systems 139.7 mln vs 127.8 mln
    Space and communications 1.9 mln vs 2.0 mln loss
    Company funded research and development 62.7 mln loss vs
54.9 mln
    Reorganisation costs nil vs 5.6 mln loss
    Launch costs include -
    BAe 146 17.1 mln vs 27.3 mln
    Airbus 19.4 mln vs 6.9 mln
    BAe 125-800 0.3 mln vs 1.5 mln
    ATP 10.8 mln vs 15.9 mln


.I 14175
.C
sugar
.W
GERMAN FEB SUGAR STOCKS UP IN YEAR, DOWN IN MONTH.
    BONN, March 24 - West German sugar stocks rose to 2.60 mln
tonnes, white value, at the end of February from 2.50 mln at
the same time a year earlier, the sugar industry association
WVZ said.
    However, stocks were well below the 2.82 mln held at the
end of January.
    Sugar exports between October 1 and February 28 rose to
449,253 tonnes from 435,727 in the same period of 1985/86.
Sales to non-European Community countries rose to 419,541
tonnes from 349,511, while sales within the EC fell sharply to
29,712 tonnes from 86,216.
    Imports in October-February fell to 59,605 tonnes from
76,044 in the same months a year earlier, the sugar industry
association said.
    Human sugar consumption in October-February rose to 817,856
tonnes from 799,128 in the year-ago period.


.I 14177
.C
grain
.W
PORTUGUESE GRAIN AGENCY BAN TO REMAIN - EC SOURCES.
    BRUSSELS, March 24 - A ban by a Portuguese court on the
state buying agency EPAC taking part in cereals import tenders
open to private traders will remain unless it is reversed in
Portugal or challenged in the European Court of Justice,
European Commission sources said.
    They denied a statement yesterday by Portuguese Agriculture
Minister Alvaro Barreto that the commission had accepted that
EPAC should be eligible, saying it had taken no view in the
matter.
    Under the terms of Portugal's accession to the European
Community, a grain import monopoly held by EPAC is being
reduced by 20 pct annually until all imports are liberalised in
1990.
    Lisbon's civil court decided in a preliminary ruling
earlier this month that EPAC should not be allowed to take
part, as it had done in the past, in tenders for the
liberalised share of annual grain imports.


.I 14178
.C
dlr;money-fx;
.W
BANK OF JAPAN STEPS UP DOLLAR BUYING.
    TOKYO, March 24 - The Bank of Japan stepped up its dollar
buying as it re-entered the market after the midday Tokyo lunch
break, dealers said.
    They said the bank seemed more determined to support the
dollar than it did this morning.
    Several dealers said the central bank intervened this
afternoon when the dollar stood around 149 yen.
    One said it purchased 150 to 200 mln dlrs in the half-hour
since the market re-opened after its lunchtime closure. Another
said the bank still has buying orders in the market.


.I 14179
.C
money-fx
.W
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY.
    TOKYO, March 24 - Bank of Japan Governor Satoshi Sumita
said in a statement the central bank will intervene in foreign
exchange markets to stabilise exchange rates if necessary in
close cooperation with other major industrial nations.
    Sumita said the Bank will take adequate measures including
market intervention, if necessary, in line with the February 22
Paris agreement by six major industrial nations.
    Canada, Britain, France, Japan, the U.S. And West Germany
agreed to cooperate in stabilising exchange rates around
current levels. Sumita's statement was issued after the dollar
slipped below 150 yen to hit a record low of 148.40.
    "It is inevitable that exchange rates fluctuate under the
system of floating rates," Sumita said.
    The fact the dollar plunged below 150 yen does not mean
anything significant under the floating system, he said.
    The six nations agreed in Paris exchange rates prevailing
then were broadly consistent with underlying economic
fundamentals and further substantial rate shifts could damage
growth and adjustment prospects in their countries, the Paris
statement said.


.I 14182
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ipi
.W
CBI SURVEY POINTS TO SURGE IN U.K. OUTPUT.
    LONDON, March 24 - British manufacturers expect output to
grow rapidly in the four coming months, a Confederation of
British Industry (CBI) survey shows.
    The CBI's monthly trends survey for March shows that 43 pct
of the 1,685 polled U.K. Firms expect to raise output in the
next four months. Only nine pct expect output to fall while 47
pct said production would likely remain unchanged.
    The CBI said the positive balance between firms expecting
production to rise and those forecasting a fall, at 34 pct, was
the highest such figure recorded since 1977.
    In the CBI's February survey, 37 pct of companies expected
a rise in output while 54 pct forecast production would remain
at present levels and eight pct expected production to drop.
    The survey also showed that 23 pct of the polled companies
consider current order books to be above normal while 58 pct
view them as normal and only 19 pct regard them as below
normal.
    This was the highest positive balance since the question
was first asked more than 10 years ago, the CBI said.
    In February, the figures were 24 pct, 22 pct and 54 pct
respectively.
    Companies also rated their export possibilities higher. Of
all polled companies, 23 pct rated their export order books to
be above normal and 53 pct described them as normal while only
23 pct believed export orders were below normal levels.
    In February, 25 pct thought their export books were below
normal and 50 pct believed them to be about normal. At 23 pct,
the proportion of companies rating their export books above
normal was unchanged between February and March.
    On prices, the survey showed that 62 pct of companies
expect average prices at which domestic orders are booked will
remain unchanged in the coming four months, up from 57 pct in
February.


.I 14183
.C
trade
.W
YEUTTER SEES GATT CONSENSUS ON FARM TRADE REFORM.
    By Graham Hillier, Reuters
    TAUPO, New Zealand, March 24 - U.S. Trade Representative
Clayton Yeutter said trade ministers meeting here have reached
a general consensus on agricultural trade reform under the
latest Uruguay round of the General Agreement on Tariffs and
Trade (GATT).
    Yeutter gave no precise details of the understanding but
told journalists the consensus covers the principles involved
in agricultural trade reform and what needs to be done to
improve the global situation in agriculture.
    Delegates from 22 countries are meeting informally to
discuss progress made since the latest GATT round was launched
in Punta del Este, Uruguay, last September.
    Yeutter said "at least people seem to be going down the same
road...But how that translates ultimately into negotiations is
another matter entirely."
    There seems to be an understanding of the need to deal with
the problem quickly and "a more common understanding of how we
are going to get from here to there," Yeutter said.
    However, the hard work is still to come, with a couple of
years of tough negotiations ahead, he said.
    "It is ludicrous for the nations of the world to plough
immense amounts of financial resources into the production of
items that nobody wants to buy," he said.
    He said the long-term answer is to switch some of the
financial resources now committed to agriculture to other more
productive areas. This would help agriculture because some its
inefficient non-productive segments would stop operating, he
said.
    Individual segments in many countries may lose in the
process, but it should result in a more rational system of
world-wide production within 10 or 15 years, he said.
    It is important that the agriculture negotiations reach a
relatively early conclusion because the U.S. Is spending 26
billion dlrs a year and the European Community probably more
than that, which is an ineffective use of financial resources,
he said.
    Asked about the prospect of a priority for agriculture in
the negotiations, he said "one has to be politically
realistic... If there is any chance of getting it (agricultural
trade reform) done in two to three years it's going to have to
be as part of a larger package."


.I 14184
.C
trade
.W
NAKASONE INTERVENES IN MICROCHIP DISPUTE.
    TOKYO, March 24 - Prime Minister Yasuhiro Nakasone
intervened to try to resolve Japan's escalating dispute with
the U.S. Over semiconductor trade, government officials said.
    At today's Cabinet meeting, Nakasone told Trade and
Industry Minister Hajime Tamura to redouble his efforts to calm
U.S. Anger over what it sees as Japan's unfair trade practices
in semiconductors.
    Nakasone intervened only two days before a scheduled
meeting of the Reagan administration's Economic Policy Council
to consider whether Japan is reneging on its microchip pact
with the U.S.
    That pact, agreed last year after months of negotiations,
calls on Japan to stop selling cut-price chips in world markets
and to raise its imports of U.S. Semiconductors.
    Senior U.S. Officials have accused Tokyo of failing to live
up to the accord and have threatened retaliatory action.
    Yesterday, Tamura's Ministry of International Trade and
Industry (MITI) launched a last-ditch attempt to salvage the
pact by writing letters to U.S. Policy makers setting out
Japan's case and telling Japanese chip makers to cut output.
    In his letter, the contents of which were released today,
Tamura said a MITI survey carried out at the beginning of March
showed Japanese producers were not selling at cut-rate prices
in Asian markets.
    In a separate letter sent to senior U.S. Officials, MITI
vice minister for international affairs Makoto Kuroda suggested
the two countries could conduct a joint investigation into
allegations of Japanese chip dumping in such markets.


.I 14185
.C
dlr;money-fx;
.W
DOUBTS ABOUT ACCORD SEEN WEAKENING DOLLAR FURTHER.
    By Kunio Inoue, Reuters
    TOKYO, March 24 - The dollar is expected to decline further
in coming days as scepticism mounts about the effectiveness of
last month's Paris accord to stabilise currency exchange rates,
senior foreign exchange dealers said.
    Following its fall today to a record 148.40 yen, dealers
said they expect the dollar to establish a new trading range of
147 to 150 yen before the market again tries to push it down.
Behind the latest dollar fall lies the belief that last month's
accord was no longer enough to stop operators pushing the
dollar down, the dealers said.
    "The recent remark by U.S. Treasury Secretary James Baker
that the Paris accord did not set any target ranges for major
currencies has cast a shadow on the agreement," said Koji
Kidokoro, general manager of Mitsui Bank Ltd's treasury
division.
    He said the market interpreted this as indicating the U.S.
Would favour a weaker dollar and it had little intention of
intervening to support the currency.
    "This eliminated the widespread market caution against
possible joint central bank intervention," Kidokoro said.
    Dealers said the dollar had gathered renewed downward
momentum and that Bank of Japan intervention alone could hardly
contain a further slide in the currency.
    They said the central bank bought between one to 1.5
billion dlrs today, including direct purchases through brokers,
and yesterday it might have bought a small amount of dollars
through the U.S. Central bank in New York.
    Most dealers said they doubted the U.S. Federal Reserve
would intervene on its own account to support the dollar, but
some said this might occur if the dollar fell much below 148
yen.
    "If the dollar drops to that low level, it could reduce the
flow of foreign capital into U.S. Securities, which the
Americans don't want," said Haruya Uehara, chief money market
manager of Mitsubishi Trust and Banking Corp.
    He said the dollar may return to around 152 yen next month
when corporations reduce their dollar sales after they close
their books for the 1986/87 business year ending on March 31.
    But dealers said the longer-term outlook for the dollar
remained bearish. This was due to the lacklustre performance of
the U.S. Economy, the continuing U.S. Trade deficit and
Japanese delays in announcing an economic stimulation package.
    "The Americans are getting frustrated at Japan's inertia in
stimulating its economy," said Hirozumi Tanaka, assistant
general manager of Dai-Ichi Kangyo Bank Ltd's international
treasury division.
    In the Paris currency accord Japan promised a package of
economic measures, after the fiscal 1987 budget was passed, to
boost domestic demand, increase imports, and thus reduce its
trade surplus. The package was expected in April, but debate on
the budget has been delayed by an opposition boycott of
parliamentary business over the proposed introduction of a
sales tax.
    In the circumstances the government had only a slim chance
of producing a meaningful economic package in the near future,
Dai-Ichi Kangyo's Tanaka said.
    Dealers said if steps are not taken to stimulate the
Japanese economy protectionist sentiment in the U.S. Congress
would grow and put more downward pressure on the dollar.


.I 14186
.C
earn
.W
******Prudential Corp 1986 pretax profit 178.1 mln stg vs 110.1 mln.
Blah blah blah.

.I 14187
.C
acq
.W
NIPPON LIFE, SHEARSON TIE-UP SEEN SETTING TREND.
    By Steven Brull, Reuters
    TOKYO, March 24 - Nippon Life Insurance Co's 538 mln dlr
purchase of a 13 pct stake in Shearson Lehman Brothers Inc
brokerage unit is a shrewd move that other Japanese insurers
are likely to follow, securities analysts said.
    The investment in one of Wall Street's top brokerage houses
is likely to pay off in dollars and international market
position, they said. "It's part of a trend towards growing
capital participation by Japanese insurance firms in foreign
financial institutions," said Simon Smithson, an analyst with
Kleinwort Benson International Inc in Tokyo.
    The investment in Shearson Lehman, a growing firm described
by some analysts as the top U.S. Retail brokerage, will give
Nippon Life a ringside seat and possibly lower commissions on
Wall Street, where it invests an increasing percentage of its
assets of 90.2 billion dlrs, they said.
    Nippon Life staff will also acquire expertise in business
sectors which have not yet opened up in Japan, they added.
    The agreement between the two companies calls for a 50-50
joint venture in London focussing on investment advisory asset
management, market research, and consulting on financing.
    Nippon Life is Japan's largest insurance company and the
world's biggest institutional investor, analysts said.
    The Japanese finance ministry is expected to approve the
deal in April, making Nippon Life the first Japanese life
insurance firm to take a stake in a U.S. Financial firm.
    The limit on foreign assets as a proportion of Japanese
insurers' assets was increased to 25 pct from 10 pct last year.
Since then, they have stepped up purchases of foreign stocks
and sought to deepen their understandng of foreign markets and
instruments.
    Last year, a Sumitomo Life Insurance Co official was
appointed to E.F. Hutton Group Inc unit E.F. Hutton and Co's
board and Sumitomo Bank Ltd spent 500 mln dlrs to become a
limited partner in Goldman, Sachs and Co.
    Smithson said Japanese banks started buying smaller and
problem-plagued banks in 1984. "But now Japanese are going for
blue-chip organisations," he said.
    "It's a reflection of what has happened in manufacturing
industries," said Brian Waterhouse at James Capel and Co. "With a
historically high yen, and historically low interest rates,
there's an increasing disincentive to invest in Japan."
    Competition in fund management has grown along with greater
Japanese savings. The typical salaried employee has 7.33 mln
yen in savings, reflecting an annual average savings rate of 17
to 18 pct, he said.
    To stay competitive, fund managers must invest overseas and
gain experience with financial instruments which are likely to
spread to Japan with further deregulation. "The high regulatory
environment has delayed (life insurance firms')
diversification. Now there's a growing number of new products
in an environment of increasing competition for performance on
fund management," Smithson said.


.I 14188
.C
trade
.W
CANADA OUTLINES GATT AGRICULTURAL REFORM PLAN.
    TAUPO, New Zealand, March 24 - Canadian Trade Minister Pat
Carney said that agricultural policies should not hurt world
international trade and should therefore become more price
responsive over time.
    She told delegates at the informal meeting of trade
ministers that this was one of five principles Canada wanted
adopted in reforming agriculture in the General Agreement on
Tariffs and Trade (GATT). Secondly, support for agriculture
should avoid production incentives, and thirdly, countries
should freeze and seek to reduce government aid measures that
distorted world prices, Carney said.
    Carney said the fourth principle was that countries should
not introduce new import barriers not mandated by existing
legislation and the fifth was that these basic principles must
be implemented collectively.
    Carney later told Reuters the Canadian guidelines are
basically compatible with the seven point Australian proposals
announced in Davos, Switzerland, in January.
    European trade sources said the conference welcomed the
Canadian initiative but some delegates, and not only the
European Community, voiced reservations about some of the
principles.
    Carney said there was a lot of political will among the
ministers here to complete the Uruguay Round of GATT in under
four years and that there is also a realisation that it has to
be done in a balanced way.
    "The consensus view was to proceed as fast as we can on a
broad front and see what areas emerge where we can get early
conclusion," she said.
    However, the meeting did not identify what those areas are,
Carney said.  She said Canada/U.S. Bilateral trade
negotiations, which must be concluded at least in draft form by
October, are progressing well.


.I 14189
.C
earn
.W
PRUDENTIAL CORP PLC <PRUL.L> 1986 YEAR.
    LONDON, March 24 -
    Shr 34.5p vs 24.5p adjusted
    Div 19p making 29p vs 24.8p adjusted
    Pretax profit 178.1 mln vs 110.1 mln
    Tax and minorities 60.5 mln vs 32.7 mln
    Profit attributable 117.6 mln vs 77.4 mln
    Pretax profit includes -
    Long term business 145.5 mln vs 137.7 mln
    General insurance business -
    Underwriting loss 99.9 mln vs 131.6 mln
    Investment income 94.8 mln vs 78.2 mln
    Trading loss 5.1 mln vs 53.4 mln
    Investment management, U.K. 6.4 mln vs 1.6 mln
    Shareholders' other income 31.3 mln vs 24.2 mln
    Pretax profit by division includes -
    U.K. Individual division 97.1 mln vs 89.5 mln
    U.K. Group pensions 10.5 mln vs 10.6 mln
    International 13.4 mln vs 12.4 mln
    Mercantile and General 24.5 mln vs 25.2 mln
    Prudential Portfolio managers 6.4 mln vs 1.6 mln
    Prudential Property Services 2.1 mln loss vs nil


.I 14191
.C
money-fx
.W
MAJOR NATIONS MUST ACT ON CURRENCIES - MIYAZAWA.
    TOKYO, March 24 - Finance Minister Kiichi Miyazawa said the
time has come for major industrialised nations to take action
on exchange rates in line with their agreement last month in
Paris.
    In Paris, Britain, Canada, France, Japan, the U.S. And West
Germany agreed to coooperate to hold currency rates around
their then current levels.
    Miyazawa would not say what specific measures major nations
would take, but told reporters the measures had been discussed
in Paris. The dollar fell to a record low against the yen this
morning, piercing the 150 yen barrier.
    Asked if major nations were now negotiating on what
measures to take, Miyazawa said they were not as measures had
already been agreed in Paris.


.I 14192
.C
trade;ipi;
.W
JAPAN ECONOMY MAY START BOTTOMING OUT SOON -AGENCY.
    TOKYO, March 24 - Japan's economy remains sluggish but is
beginning to show signs it may bottom out soon, the Economic
Planning Agency said in a monthly report submitted to Cabinet
ministers.
    But a bottoming out of the economy depends largely on the
yen's exchange rate trend in the immediate future, Agency
officials said.
    The officials told reporters industrial production, down
0.5 pct in January from December, is likely to turn positive in
February and to rise thereafter, raising hopes for a brighter
economic outlook.
    The Agency predicted industrial production will grow 2.5
pct in the current January/March quarter after falling 0.7 pct
in the previous quarter.
    A rise of this size would be the largest since the fourth
quarter of 1984 when industrial output rose 2.7 pct, the
officials said.
    They also said an expected upturn in exports would be a
mixed blessing as it would contribute to economic growth but
would increase the chance of trade friction.
    Japanese exports contracted five pct in February from
January but are likely to grow from March if the yen stabilizes
around current levels, the officials said.
    They predicted exports will increase by 2.3 pct in the
January/March quarter from the October/December quarter.
    "But the problem is imports are not expanding," said one
official. Imports fell by 9.4 pct in February from January.


.I 14193
.C
crude
.W
KUWAIT SAYS OPEC 2.4 MLN BPD BELOW CEILING.
    KUWAIT, March 24 - Kuwaiti oil minister Sheikh Ali
al-Khalifa al-Sabah said OPEC was producing well below its oil
output ceiling and this would help prices move higher,
according to a Kuwaiti newspaper interview.
    The al-Rai al-Aam newspaper quoted him as saying OPEC was
pumping 2.4 mln barrels per day (bpd) less than its 15.8 mln
bpd ceiling, while consumers were drawing down their petroleum
stocks at a rate of 4.5 mln bpd.
    As long as OPEC maintains its output curbs, demand for its
oil will rise in April and May, Sheikh Ali said, adding that
Kuwait was strongly committed to its OPEC quota.


.I 14194
.C
interest
.W
****** Bundesbank allocates 6.5 billion marks in 28-day repurchase pact at 3.80 pct.
Blah blah blah.

.I 14195
.C
money-fx
.W
MIYAZAWA SAYS U.S. LIKELY TO INTERVENE.
    TOKYO, March 24 - Finance Minister Kiichi Miyazawa told
Parliament's Lower House Finance Committee that the U.S. Is
expected to intervene in the foreign exchange market to
stabilise exchange rates, political sources said.
    Asked if the U.S. Federal Reserve Board agreed in Paris
last month to intervene to stabilise exchange rates, Miyazawa
said yes, the sources said.
    Miyazawa was also quoted as saying that he is sceptical
about the effectiveness of currency reference ranges even if
major nations agree on such an idea as it is extremely
difficult to set such ranges.


.I 14196
.C
ship;crude;
.W
U.S. OFFERS TO ESCORT KUWAITI TANKERS IN GULF.
    WASHINGTON, March 24 - The U.S. Has offered warships to
escort Kuwaiti tankers in the Gulf past Iranian anti-ship
missile batteries, Defence Department officials said.
    The officials told Reuters yesterday the offer was made
last week by Navy Admiral William Crowe, chairman of the
Pentagon Joint Chiefs of Staff, during a Middle East visit.
    Reagan administration officials said later that Washington
did not seek military confrontation with Tehran, but would not
let Iran use Chinese-made "Silkworm" anti-ship missiles, capable
of covering the narrow entrance to the Gulf, to choke oil
shipments to the West.
    Defence officials said Kuwait had asked if protection for
up to a dozen vessels, most of them tankers, could be provided
by three U.S. Navy destroyers and two frigates now in the
southern Gulf and the Gulf of Oman.
    In addition to a half dozen ships in the U.S. Navy's small
Mideast Task Force near the Straits of Hormuz, the Pentagon has
moved 18 warships, including the aircraft carrier Kitty Hawk,
into the northern Arabian Sea in the past month.
    White House and defence officials said that massing the
fleet was routine and had nothing to do with the Iran-Iraq war
or Iran's stationing of missiles near the mouth of the Gulf.
    The State Department said on Friday that Iran has been told
about U.S. Concern over the threat to oil shipments in the
Gulf. The communication was sent through Switzerland, which
represents U.S. Interests in Iran.
    Iran denied as baseless reports that it intended to
threaten shipping in the Gulf and said any U.S. Interference in
the region would meet a strong response, Tehran Radio said on
Sunday.
    Several hundred vessels have been confirmed hit in the Gulf
by Iran and Iraq since early 1984 in the so-called tanker war,
an offshoot of their 6-1/2-year-old ground conflict.


.I 14197
.C
trade
.W
YEUTTER SAYS U.S.-JAPAN TRADE DIFFICULTIES REMAIN.
    TAUPO, New Zealand, March 24 - U.S. Trade Representative
Clayton Yeutter said he was unsure whether some of the trade
issues straining U.S.-Japanese relations would be resolved
before the two countries open trade talks in late April.
    "We are having high level discussions on them (the issues)
within the United States...The relationship on some of those is
very strained between us (Japan) at the moment and we need to
relieve those strains at the earliest possible date," he said.
    "I am not sure we can wait until late April," he added.
    Yeutter is in New Zealand for a two-day informal meeting of
trade ministers who are reviewing the Uruguay round of the
General Agreement on Trade and Tariffs (GATT).
    He said he will meet the Japanese delegation over the next
few days but declined to discuss methods of relieving the
strain between the two countries.
    Yeutter said earlier the three most contentious trade
issues were semiconductors, Japanese government unwillingness
to allow public entities to buy U.S. Super-computers and the
barring of U.S. Firms from the eight billion U.S. Dlr Kansai
airport project near Osaka.
    The Japanese delegation to the GATT talks said in a
statement yesterday they are making major efforts to dismantle
trade barriers in their country.
    "I am convinced that they are attempting to move their
policies in the right direction. The question is how far and
how fast," Yeutter said.


.I 14198
.C
interest
.W
BUNDESBANK ALLOCATES 6.5 BILLION MARKS IN TENDER.
    FRANKFURT, March 24 - The Bundesbank accepted bids for 6.5
billion marks at today's tender for a 28-day securities
repurchase pact at a rate of 3.80 pct, a central bank spokesman
said.
    Banks, which bid for a total 8.6 billion marks liquidity,
will be credited with the funds allocated tomorrow and must buy
back securities pledged on April 22.
    The allocation was in line with market expectations the
Bundesbank would provide more than the 3.4 billion marks
draining from this week as an earlier facility expires.
    Call money fell to 3.60/70 pct ahead of the allocation from
3.75/85 pct yesterday, dealers said.
    The excess allocation compensates for public funds leaving
the system which the Bundesbank added last week via
government-owned banks.
    However major tax payments by banks on behalf of customers
drew to a close this week, lessening the need for liquidity.
    The call money declines surprised some dealers, who
speculated it was because the Bundesbank disbursed further
government funds today. However, most said this had not
occurred.
    Banks were well stocked with liquidity, having 47.1 billion
marks in minimum reserves at the Bundesbank on Friday, up from
49.9 billion on Thursday. Average daily reserves over the first
20 days of the month fell to 52.6 billion from 53.1 billion.
For all of March, banks would be required to hold net daily
average reserves of 50.7 billion marks, dealers said.


.I 14199
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 115 MLN STG ASSISTANCE.
    LONDON, March 24 - The Bank of England said it had provided
the money market with 115 mln stg assistance in the morning
session. This compares with the Bank's forecast of a 300 mln
stg shortage in the system today.
    The central bank bought bills outright in band two at
9-13/16 pct comprising 73 mln stg bank bills and 42 mln stg
local authority bills.


.I 14202
.C
jobs
.W
FRENCH EMPLOYERS CHIEF SEES HOPE FOR GROWTH.
    PARIS, March 24 - The 1992 deadline for abolishing economic
barriers within the European Community should help French
economic growth and create jobs, president of the French
employers' federation CNPF Francois Perigot said.
    "Having a market at our disposal which is as homogeneous and
accessible as that of Europe is an incredible piece of luck," he
told Le Figaro in an interview.
    He said that the majority of French business leaders were
enthusiastic about the abolition of barriers and saw it as an
opportunity rather than a danger for their companies.
    "It can permit us to return to a growth rate which is much
better than we could achieve in isolation. We know that we have
to reestablish growth at three pct a year to solve the enormous
problems confronting us -- and I am referring mainly to
unemployment," Perigot added.
    Finance Minister Edouard Balladur said yesterday that
French growth would be just two pct this year, the same as last
year and compared with the government's original 2.8 pct
target.


.I 14204
.C
sugar
.W
SOVIET SUGAR IMPORTS HIGHER IN OCT/NOV.
    LONDON, March 24 - Soviet sugar imports in October and
November were significantly higher than in the same period of
the year before, according to figures received by the
International Sugar Organization.
    Imports in October totalled 23,803 tonnes, compared with
4,685 tonnes in the same month of 1985, while November imports
were up to 136,029 tonnes from 46,541.
    For the first 11 months of 1986, Soviet imports totalled
5.12 mln tonnes, against 4.30 mln in the same period of 1985.
    The October 1986 import figure consisted entirely of whites
from Cuba, while the November total was made up of 84,037
tonnes Cuban whites and 51,992 tonnes whites from Thailand. Of
the imports in the January/November period, those from Cuba
were up to 3.81 mln tonnes from 3.65 mln and from Thailand to
292,808 tonnes from 22,800.
    Soviet exports also increased in 1986. The January/November
export total of 289,232 compares with 165,859 tonnes in the
first 11 months of 1985. Exports in October 1986 were 20,064,
down from 38,853 a year earlier, while November exports were up
from 32,796 to 50,855 tonnes.


.I 14205
.C
sugar
.W
WEST GERMAN 1986 SUGAR OUTPUT RISES.
    HAMBURG, March 24 - West German sugar production last year
rose 38,000 tonnes to an estimated 3.17 mln tonnes, the
Agricultural Ministry said.
    It said the increase was exclusively due to higher beet
sugar content, which went up to 17.93 pct from 17.3 pct in
1985.
    Last year's beet deliveries totalled 20.22 mln tonnes, down
554,000 tonnes from the previous year.
    The ministry estimates West Germany's sugar
self-sufficiency during the current agricultural year
(July/June) unchanged at 137 pct.


.I 14206
.C
acq
.W
NORCROS REJECTS 542.2 MLN STG BID FROM WILLIAMS.
    LONDON, March 24 - Norcros Plc <NCRO.L> the building
products and packaging group said its board had no hesitation
in unanimously rejecting this morning's 542.2 mln stg bid from
<Williams Holdings Plc>, the industrial holding firm.
    The company said Williams' 432.7p per share offer was
unsolicited and unwelcome and significantly undervalues
Norcros. By 1228 gmt Norcros shares were quoted at 418p, up
from 397p at yesterday's close. Williams was 15p higher at 765.
    The Norcros board's detailed views will be sent to
shareholders when the formal offer document has been issued by
Williams.


.I 14207
.C
grain
.W
NO PROOF OF MORE CHERNOBYL GRAIN DAMAGE-DIPLOMATS.
    MOSCOW, March 24 - Western agricultural attaches in Moscow
said they had no evidence to substantiate rumours that last
April's Chernobyl nuclear disaster had a worse effect on Soviet
grain than first reported.
    Current Soviet interest in chartering ships to carry grain
from the U.S. Helped prompt the rumours on world markets. But
the diplomats said they had seen no reports in the state press
and heard no comments from officials to substantiate them.
    The official media was initially slow in reporting the
accident but, under Kremlin leader Mikhail Gorbachev's campaign
for openness, gradually gave more and more details.
    Land around the nuclear plant was contaminated to varying
degrees. Some is now being used to grow industrial crops
instead of grain.


.I 14209
.C
ship
.W
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ.
    BAHRAIN, March 24 - Iran has test-fired its newly acquired
Silkworm anti-shipping missile in the Strait of Hormuz and has
set up at least two land-based launching sites in the area, a
British naval source in the Gulf said.
    The source, who declined to be identified, said Iran had
fired the Chinese-made missile at a hulk off its southern Gulf
naval port of Bandar Abbas and scored a hit.
    "These missiles pack a fairly big punch," he told Reuters.
"There is no doubt they could be used to target (shipping)
across the Strait of Hormuz."
    Tension in the Gulf has risen since U.S. Officials last
week broke the news that Iran had acquired the Silkworm
missiles.
    The U.S. Has said it will not allow Iran to use the
missiles to choke off oil shipments and has offered its
warships to escort Kuwaiti tankers past the missile batteries.
    But Tehran denied last Sunday it intended to threaten Gulf
shipping and warned the U.S. Any interference in the region
would meet a strong response.
    The British naval source said the Silkworms were in place
at at least two sites around the Strait of Hormuz, but would
not give the exact location.


.I 14210
.C
acq
.W
MERRILL LYNCH <MER> IN TALKS ON CANADA PURCHASES.
    NEW YORK, March 24 - Merrill Lynch and Co Inc is holding
talks on acquiring Canadian brokerage firms, a company
spokesman told Reuters.
    He said one of the firms with which Merrill Lynch is
negotiating is <Burns Fry Corp> of Toronto, which has already
received an offer from Security Pacific Corp's <SPC> 83 pct
owned <Hoare Govett Ltd> London-based brokerage unit.  The
Hoare Govett bid is valued at about 210.4 mln U.S. dlrs.
    The spokesman said the talks are the result of a change in
Ontario securities laws that takes effect June 30.
    Currently, companies outside the Canadian securities
industry are prohibited from owning more than 10 pct of a
Canadian broker.  On June 30, 1987, foreign brokers will be
allowed to own up to 50 pct of Canadian brokers, and the
percentage will rise to 100 pct a year later.


.I 14211
.C
acq
.W
MARK IV <IV> STARTS BID FOR CONRAC <CAX>.
    NEW YORK, March 24 - Mark IV Industries Inc said it has
started the 25 dlr per share tender offer for all shares of
Conrac Corp that it announced yesterday afternoon.
    In a newspaper advertisement, the company said the offer
and withdrawal rights expire April 20 unless extended.  The
offer is not conditioned on receipt of any minimum number of
shares but is conditioned on the arrangement of financing.
    Mark IV already owns about 9.9 pct of Conrac's 6.8 mln
shares outstanding.


.I 14212
.C
acq
.W
ECOLAB <ECL> STARTS BID FOR CHEMLAWN <CHEM>.
    NEW YORK, March 24 - Ecolab Inc said it has started its
previously-announced tender offer for all shares of ChemLawn
Corp at 36.50 dlrs each.
    In a newspaper advertisement, the company said the offer
and withdrawal rights expire April 20 unless extended.  The
ChemLawn board has approved the tender and a merger at the same
price that is to follow.
    Ecolab said the offer is conditioned on receipt of at least
5,325,000 shares.  ChemLawn now has about 10.0 mln shares
outstanding.
    Ecolab said ChemLawn has granted it a conditional option to
buy all authorized but unissued and unreseved ChemLawn shares
at 36.50 dlrs each.  The option is exercisable in the event
that another party were to acquire 20 pct or more of ChemLawn
by means other than a tender offer for all shares at a higher
price than Ecolab is offering.
    The company said if the merger agreement is terminated
under certain circumstasnces, it will be entitled to receive 20
mln dlrs in damages from ChemLawn.
    Ecolab said officers and directors of ChemLawn have granted
it options to acquire an aggregate of 2,535,435 ChemLawn shares
or about 24.8 pct for the tender price, again unless a higher
tender were to be made by another party.
    Waste Management Inc <WMX> had originally made a hostile
tender offer of 27 dlrs per share for ChemLawn which ChemLawn
rejected as inadequate.  On Friday, Waste Management said it
would raise its bid to 35 dlrs per share.


.I 14213
.C
trade
.W
TAIWAN PROPOSES FURTHER TARIFF CUTS.
    TAIPEI, March 24 - Taiwan said it plans another round of
tariff cuts, possibly within a month, to try to narrow its
trade surplus with the U.S.
    Vice Finance Minister Ronald Ho said a high-level economic
committee recommended tariff cuts on 66 products requested by
Washington, including apples, chocolates and fruit juice.
    Ho said the cuts may come into effect by the end of next
month.
    Taiwan's trade surplus with the U.S. Widened in the first
two months of this year to 2.35 billion dlrs from 1.87 billion
dlrs in the same period last year.


.I 14215
.C
cpi;wpi;
.W
PAKISTAN CONSUMER PRICE INDEX FALLS IN JANUARY.
    KARACHI, March 24 - Pakistan's consumer price index (base
1975/76) fell to 231.93 in January 1987 from 233.26 in December
1986, and compared with  223.66 a year ago, the federal Bureau
of Statistics said.
    The wholesale price index (same base) rose to 229.83 in
January from 229.06 in December and compared with  217.97 in
January 1986.


.I 14217
.C
ship
.W
IRAN SAID TO TEST FIRE SILKWORM MISSILE IN HORMUZ.
    BAHRAIN, March 24 - Iran has test-fired its newly acquired
Silkworm anti-shipping missile in the Strait of Hormuz and has
set up at least two land-based launching sites in the area, a
British naval source in the Gulf said.
    The source, who declined to be identified, said Iran had
fired the Chinese-made missile at a hulk off its southern Gulf
naval port of Bandar Abbas and scored a hit.
    "These missiles pack a fairly big punch," he told Reuters.
"There is no doubt they could be used to target (shipping)
across the Strait of Hormuz."


.I 14220
.C
trade
.W
TAIWAN PROPOSES FURTHER TARIFF CUTS.
    TAIPEI, March 24 - Taiwan said it plans another round of
tariff cuts, possibly within a month, to try to narrow its
trade surplus with the U.S.
    Vice Finance Minister Ronald Ho said a high-level economic
committee recommended tariff cuts on 66 products requested by
Washington, including apples, chocolates and fruit juice.
    Ho said the cuts may come into effect by the end of next
month.
    Taiwan's trade surplus with the U.S. Widened in the first
two months of this year to 2.35 billion dlrs from 1.87 billion
dlrs in the same period last year.


.I 14222
.C
retail
.W
******U.S. FEB DURABLE GOODS ORDERS ROSE 6.0 PCT, NONDEFENSE DURABLES ROSE 3.8 PCT.
Blah blah blah.

.I 14223
.C
earn
.W
STANDARD CHARTERED PLC <STCH.L> 1986 YEAR.
    LONDON, March 24 -
    Shr 97.0p vs 85.3p
    Div 22.5p vs 20.0p making 35.0p vs 30.5p
    Pretax profit 253.9 mln stg vs 267.9 mln
    Tax 96.3 mln vs 125.6 mln
    Operating income 1.15 billion vs 998.8 mln
    Operating expenses 759.3 mln vs 692.7 mln
    Trading profit before charge for bad and doubtful debts
    394.4 mln stg vs 306.1 mln
    Charge for bad and doubtful debts 184.2 mln vs 100.7 mln
    Share of profits of associates 43.7 mln vs 62.5 mln
    Minority interests 6.6 mln debit vs 9.6 mln debit
    Extraordinary items 8.7 mln debit vs 15.7 mln credit
    Operating income includes -
    Interest income 2.49 billion vs 2.33 billion
    Interest expenses 1.77 billion vs 1.64 billion
    Other operating income 428.8 mln vs 313.2 mln
    Operating expenses include -
    Staff 405.9 mln vs 376.0 mln
    Premises and equipment 197.0 mln vs 155.2 mln
    Others 156.4 mln vs 161.5 mln
    Pretax profit includes -  North America 65.8 mln vs 49.6
mln
    Asia Pacific 0.9 mln vs 31.8 mln
    Middle East and south Asia 17.7 mln vs 2.3 mln
    Tropical Africa 47.5 mln vs 44.7 mln
    U.K. 107.6 mln vs 135.7 mln
    South Africa 36.8 mln vs 35.6 mln


.I 14225
.C
acq
.W
KDI <KDI> TO BUY TRIANGLE MICROWAVE <TRMW>.
    EAST HANOVER, N.J., March 24 - KDI Corp said it has agreed
in principle to acquire Triangle Microwave Inc for 6.50 dlrs
plus a contingent payment for each Triangle share.
    It said holders of the contingent payment units will be
entitled to receive annual payments to the extent that the
predepreciation gross profits of Triangle Microwave in each of
the years 1987 through 1991 exceed threshholds ranging from
eight mln dlrs in 1987 to 14 mln dlrs in 1991.
    The company said holders of Triangle Microwave options and
warrants will be entitled to receive the difference between
6.50 dlrs and their exercise price, plus contingent payments.
    KDI said completion of the transaction is subject to
governmental approvals and the approval of Triangle Microwave
shareholders, and the transaction is valued at over 35 mln
dlrs.
    It said shareholders of Triangle Microwave controlling
about 30 pct of the company's stock have agreed to vote in
favor of the deal and to give KDI an option to buy their shares
under certain components.
    Triangle Microwave makes microwave components.  KDI, a
diversified company, produces electronic components, technical
products and swimming pool equipment.                


.I 14226
.C
livestock
.W
STORM BRINGS HEAVY SNOWS TO U.S. PLAINS.
    Kansas City, March 24 - The National Weather Service said a
powerful winter storm centered over north central Oklahoma was
spreading snow from western and central Kansas across much of
Nebraska to southern and eastern South Dakota.
    Rain was reported across parts of Minnesota, Iowa, eastern
Kansas, Missouri and eastern Oklahoma, with showers and a few
thundershowers extending from Arkansas through the lower
Mississippi Valley to Alabama and northwest Florida.
    Strong winds of 20 to 35 mph with some stronger gusts were
reported across much of the Plains, causing considerable
blowingand drifting snow. A blizzard warning continued this
morning across most of western Kansas. A winter storm warning
was issued this morning over central and northeast Nebraska.
    Weather advisories were posted for this morning over
central Kansas and central and southeast sections of South
Dakota where two to five inches of snow could accumulate.
    Locally heavy rains accompanied the storm over portions of
the central Plains. Flash flood watches were issued for this
morning across the eastern half of Kansas.
    A flood warning continues today for eastern Nebraska.
Widespread lowland and small stream flooding is expected to
continue over most of eastern Nebraska through Wednesday.
    Due to cold, damp and windy conditions, livestock
advisories were posted this morning across central and
southeast portions of South Dakota.
    As the storm moves north across the central Plains, winter
storm watches were issued over south central South Dakota, late
tonight and Wednesday over west central Minnesota.
    Elsewhere, a travelers advisory remains in effect this
morning over northeast New Mexico and the Oklahoma and Tecas
Panhandle for blowing snow and slick roadways and across the
mountains and deserts of southern California for strong gusty
winds of 25 to 40 mph. Gale warnings were issued for today
along the central California Coast.
    Mostly clear skies extended from the Great Lakes and Ohio
Valley through the central Appalachians to the central Atlantic
Coast and New England.


.I 14227
.C
retail
.W
U.S. FEB DURABLE GOODS ROSE 6.0 PCT.
    WASHINGTON, March 24 - New orders for durable goods
received by U.S. manufacturers rose 5.7 billion dlrs, or 6.0
pct, in February to 101.2 billion dlrs, the Commerce Department
said.
    Excluding defense, orders rose 3.8 pct, compared with a
revised January decline of 7.7 pct.
    In January, durable goods fell a revised 9.9 pct instead of
the previously reported 7.5 pct. Durables excluding defense
were reported originally as having fallen 9.9 pct in January.
    The Commerce Department on Monday revised orders statistics
for 1982 to 1986 to reflect more current inventory valuation
methods, and the February orders statistics are consistent with
the revisions, officials said.
    The February order increase was led by transportation
equipment, up 11.1 pct after an 18.0 pct decline in January.
    Orders for defense capital goods rose 48.9 pct to 6.9
billion dlrs, following a 38.8 pct decline in January.
    Non-defense capital goods orders fell 1.6 pct in February
to 26.3 billion dlrs after falling 8.7 pct in January, the
department said.
    Electrical machinery orders rose in February by 8.2 pct to
17.2 billion dlrs after falling 15.4 pct in January.
    Primary metals orders were up 13.9 pct to 8.4 billion dlrs
after a 20 pct decline in January, the department said.
    New orders for non-electrical machinery were up in February
by 3.9 pct to 16.6 billion dlrs after a three pct orders
decline in January.


.I 14228
.C
earn
.W
WOOLWORTH U.K. SAYS GROWTH PROSPECTS EXCITING.
    LONDON, March 24 - Woolworth Holdings Plc <WLUK.L> which
earlier announced a 1986 pre-tax profits rise of 42 pct over
1985, said its prospects for growth were very exciting.
    The profit figure of 115.3 mln stg exceeded a forecast by
some 10 pct made during the hostile bid by Dixons Group Plc
<DXNS.L> last year and the company said the results were a
major step towards the aim of making Woolworth the most
profitable retailing group in the U.K.
    It aimed to produce growth from all its businesses and look
for opportunities to acquire specialist retail businesses.
    Earlier this month the group said that tentative merger
talks with the high street pharmacist <Underwoods Plc> had been
called off and recently announced a 19.2 mln stg recommended
offer for <Charlie Browns Car Part Centres Plc>.
    The B and Q Do it Yourself centres raised sales by 31 pct
and retail profit by 37 pct, with its pretax contribution of
45.5 mln making it the largest single component.
    The company said that the improvement had been achieved by
substantial organic growth in existing stores as well as by the
opening of a further 29 new outlets and enhanced margins.
    In other sectors, the Comet electrical chain raised retail
profits by 46 pct to 17.4 mln stg, while the Woolworth chain
reported a 120 pct improvement to 38.7 mln.
    The company said its property operations would increase
substantially following the start of a joint venture deal with
developers <Rosehaugh Plc>.
    The defence costs against the 1.9 billion stg bid from
Dixons resulted in a 16.0 mln stg extraordinary charge.
    The results were 10 mln stg up on most analysts forecasts.
As a result, the group's shares rose strongly, peaking at 865p
from last night's 842p before easing to 860p at 1155 GMT.


.I 14229
.C
earn
.W
NATIONAL SEMICONDUCTOR CORP <NSM> 3RD QTR LOSS.
    SANTA CLARA, Calif., March 24 - March Eight
    Shr loss 31 cts vs loss 47 cts
    Net loss 25.6 mln vs loss 39.4 mln
    Sales 398.1 mln vs 322.3 mln
    Avg shrs 91.6 mln vs 90.0 mln
    Nine mths
    Shr loss 44 cts vs loss one dlr
    Net loss 32.7 mln vs loss 84.4 mln
    Sales 1.36 billion vs 1.08 billion
    Avg shrs 91.2 mln vs 89.6 mln
    NOTE: Twelve and 40-week periods.
    Prior year results restated for change in method of
recognizing revenue on distributor shipments.  Quarter net loss
originally reported as 32.0 mln dlrs or 38 cts shr on sales of
328.9 mln dlrs and nine mth loss as 120.3 mln dlrs or 1.40 dlrs
shr on sales of 1.11 billion dlrs.
    Prior nine mths net includes 51.2 mln dlr gain from
cumulative effect of accounting change.
    Prior year net includes extraordinary credits of 1,100,000
dlrs in quarter and 3,300,000 dlrs in nine mths.
    Current year net both periods includes 15.0 mln dlr pretax
charge from previously-announced restructuring of Datachecker
Systems and Semiconductor Group manufacturing operations.
     


.I 14230
.C
acq
.W
******COMDATA NETWORK AGREES TO HIGHER OFFER FROM WELSH CARSON ANDERSON.
Blah blah blah.

.I 14231
.C
money-fx
.W
SUMITA SAYS BANK WILL INTERVENE IF NECESSARY.
    TOKYO, March 24 - Bank of Japan Governor Satoshi Sumita
said in a statement the central bank will intervene in foreign
exchange markets to stabilise exchange rates if necessary in
close cooperation with other major industrial nations.
    Sumita said the Bank will take adequate measures including
market intervention, if necessary, in line with the February 22
Paris agreement by six major industrial nations.
    Canada, Britain, France, Japan, the U.S. And West Germany
agreed to cooperate in stabilising exchange rates around
current levels. Sumita's statement was issued after the dollar
slipped below 150 yen to hit a record low of 148.40.
    "It is inevitable that exchange rates fluctuate under the
system of floating rates," Sumita said.
    The fact the dollar plunged below 150 yen does not mean
anything significant under the floating system, he said.
    The six nations agreed in Paris exchange rates prevailing
then were broadly consistent with underlying economic
fundamentals and further substantial rate shifts could damage
growth and adjustment prospects in their countries, the Paris
statement said.


.I 14232
.C
acq
.W
COMDATA <CDN> ACCEPTS NEW WELSH CARSON BID.
    NASHVILLE, Tenn., March 24 - Comdata Network Inc said it
has entered into a definitive agreement to merge into a company
formed by <Welsh, Carson, Anderson and Stowe IV> for either
16.50 dlrs in cash or 10.00 dlrs in cash and a unit of
securities per Comdata share.
    The company said each unit of securities would consist of
1.25 common shares in the new company and three dlrs principal
amount of the new company's 11 pct subordinated debentures due
1997.
    It said the 16.50 dlr cash alternative is an improvement
over the 15.00 dlr per share price contemplated under an
agreement in principle with Welsh Carson announced on March
Five.
    Comdata said the cash and securities alternaitcve is
subject to Welsh Carson-affiliated investors owning at least 60
pct of the stock of the new company.
    The company said investment bankers <Drexel Burnham Lambert
Inc> and Alex. Brown and Sons Inc <ABSB> found the proposal to
be fair from a financial point of view.
    It said the transaction is subject to approval by its
shareholders and to Welsh Carson obtaining up to 230 mln dlrs
in debt financing. Comdata said it may terminate the agreement
if financing is not arranged by April Three.
    On Thursday, First Financial Management Corp <FFMC> offered
to acquire Comdata for 18.00 dlrs per share in stock and cash,
subject to approval by the Comdata board.
    Under the First Financial proposal, Comdata holders would
receive no more than four dlrs per share in cash and could
receive all stock.
    Comdata had originally planned a recapitalization under
which it would have repurchased up to six mln common shares at
14.50 dlrs each.


.I 14234
.C
potato
.W
IRELAND PUT ON COLORADO BEETLE ALERT.
    DUBLIN, March 24 - The Irish Agriculture Department issued
a Colorado beetle alert today after three of the beetles were
found in a box of parsley imported from France.
    Officials said a colony of the black and amber coloured
beetles can destroy a potato field in a day. The females lay up
to 2,500 eggs each.
    Some of the 80 boxes in the parsley consignment had already
been distributed to markets and the department called on all
shopkeepers and the catering trade to be on the alert.


.I 14235
.C
dlr;money-fx;
.W
DOLLAR DROP SEEN AS TEST OF PARIS AGREEMENT.
    By Franz-Josef Ebel, Reuters
    FRANKFURT, March 24 - The sharp drop in the value of the
dollar against the yen and the mark is the first serious test
of last month's Group of Five (G-5) plus Canada agreement to
stabilise currencies, dealers and bank economists said.
    "The dollar will be pushed down until there is coordinated
central bank intervention," one dealer for a German bank said,
echoing widepread sentiment in the market.
    But opinion was divided on whether the united front forged
in Paris still exists. Some dealers said there were growing
signs the United States wanted the dollar to fall further.
    Despite repeated Bank of Japan intervention, the dollar
plunged to a post-war low in Tokyo today. It was quoted as low
as 148.40 yen in the Far East and dealers here said they
expected the U.S. Currency to decline further.
    "The dollar is now firmly within a broad 140 to 150 yen
range," Chase Bank AG's senior dealer Eckhart Hager said.
    Others said there were technical reasons for the sharp
dollar drop. "Window-dressing" operations by some Japanese
companies who were selling dollars and buying yen before the
end of the Japanese fiscal year on March 31 were undermining
the U.S. Currency.
    Dealers said main reason for the sell-off was not
technical. U.S. Treasury Secretary James Baker's comment the
Paris accord did not have fixed dollar targets was seen as a
renewed attempt by the U.S. Administration to talk the dollar
down.
    "Suddenly, support levels which had existed for fear of
central bank intervention disappeared," one dealer said.
    The Bank of Japan was believed to have bought some 1.5
billion dlrs, and this with comments by Japanese officials
indicated Tokyo was unhappy about the plunge, dealers said.
Bank of Japan governor Satoshi Sumita threatened central bank
intervention if necessary.
    Japanese Finance Minister Kiichi Miyazawa said today the
time had come for the six nations who agreed in Paris last
month to stabilise currencies - Japan, Britain, Canada, France,
the U.S. And West Germany - to take action in line with the
pact.
    But the Bundesbank and other European central banks were
not detected in the open market during the European morning.
Opinion here was divided on when the Bundesbank would act.
    While some said the West German central bank would support
the dollar once it fell below 1.80 marks, others said the
Bundesbank would only intervene after a fall below 1.75 marks
or if the decline accelerated.
    The Bundesbank last intervened on January 27, when the
dollar threatened to fall below 1.81 marks.
    "The Japanese seem to be on their own at the moment," one
dealer said. Others said cooperation between central banks and
governments was easier said than done.
    Some said Baker's remarks and U.S. Trade Representative
Clayton Yeutter's warning that the U.S. And Japan were on the
verge of a serious trade conflict showed there was a rift.
    "It's hard to tell whether the G-6 agreement still stands," a
dealer said. Another added, "If the Americans do not get what
they want, they will push the dollar down, regardless of G-6."
    Citibank AG also cast doubt on the chances of success for
the Paris agreement in its latest investment letter.
    "It is hard to see that Japan and Germany are willing or
able to loosen fiscal policy sufficiently to offset the
necessary U.S. Fiscal contraction," Citibank said.
    It added, "Markets should therefore be aware that 1.80 marks
is not the lower limit for the dollar -- a rate of 1.70 marks
or even less is expected this year."
    And London Broker Hoare Govett said in its March 1987
economic report, "We are looking for a further, more gradual,
fall, possibly to 1.60 marks by the end of the year."
    But opinion about whether the Paris accord was still in
force was not universal. Some dealers said not too much should
be read into Baker's and Yeutter's comments.
    "There is no reason to believe the Paris pact has broken
down," a senior dealer said.


.I 14237
.C
earn
.W
TRANSNATIONAL INDUSTRIES <TRSL> SEES LOSS.
    NEW YORK, March 24 - Transnational Industries Inc said due
to continuing manufacturing difficulties at its AlloyTek Inc
jet engine component subsidiary, it expects to report a net
loss of about 300,000 dlrs or 12 cts per share for the fourth
quarter ended January 31.
    It said revenues for the period were about 11.9 mln dlrs,
about even with those of a year earlier.
    For the full fiscal year, the company said it earned about
775,000 dlrs or 34 cts per share, down from 1,402,000 dlrs or
76 cts per share a year before.
    The company said an unexpectedly large volume of customer
inquiries at its Spitz Inc simulation products subsidiary has
caused higher than expected business development outlays.
    The company said it expects significant contract awards to
Spitz later this year.
    It said it has started implementing a plan to progressively
reduce manufacturing costs at AlloyTek over the next several
quarters.  The company said it may move AlloyTek's plant from
Grandville, Mich., to a lower labor cost area.
    The company said it discovered the extent of the AlloyTek
problems during a year-end review of subcontracts and related
work in progress for production of jet engine components for
General Electric Co <GE>.
    It said it will release annual results around April 15.


.I 14238
.C
acq
.W
GREAT WESTERN <GWF> SELLS INSURANCE UNIT.
    BEVERLY HILLS, Calif., March 24 - Great Western Financial
Corp said it agreed to sell its John Alden Life Insurance Co
and its affiliated operations for 280 mln dlrs to a
newly-formed company onwed by the John Alden Management Group.
    General Electric Credit Corp delivered a commitment letter
arranged by the GECC Capital Markets Group Inc for the
financing.
    Great Western said the pre-tax gain on the sale will be
approximately 65 mln dlrs, and after tax gain will be 
approximately 15 mln.


.I 14243
.C
earn
.W
STERIVET <STVTF> SETS THREE-FOR-ONE SHARE SPLIT.
    TORONTO, March 24 - Sterivet Laboratories Ltd said the
board authorized a three-for-one split of its outstanding
common shares, subject shareholder approval at the annual
meeting.


.I 14244
.C
money-fx;interest;money-supply;
.W
SPAIN RAISES CALL MONEY RATES ON HIGHER DEMAND.
    MADRID, March 24 - The Bank of Spain raised overnight call
money rates by 1/4 to 14 pct on demand for 746 billion pesetas
in today's auction, which a bank spokesman termed "heavy."
    Rates stood at 12.1 pct at the start of the year and have
been increased to drain liquidity on rising demands for funds,
the spokesman said.
    He said in reply to Reuters inquiries that rates could rise
further if money supply growth rose above this year's eight pct
target for M-4, defined as liquid assets in public hands.
    Money supply rose at an annualised rate of 16.7 pct last
month against 8.1 pct in January. Growth was 11.4 pct in 1986.
    A leading Spanish broker said the central bank was applying
a more restrictive policy to keep the lid on inflation.
    The consumer price index rose 8.3 pct last year.
    "Money supply control is the government's chief weapon
against inflation," he said. "The problem is higher rates are
attracting liquidity from abroad."
    He said this was why the central bank enacted specific
measures to control the inflow of foreign capital. The Bank of
Spain earlier this month imposed a 19 pct reserve requirement
on new convertible peseta funds held by banks to curb
short-term speculative capital from abroad.


.I 14245
.C
earn
.W
CAMPBELL RED LAKE <CRK> SETS QUARTERLY DIVIDEND.
    TORONTO, March 24 -
    Qtly div 10 cts vs 10 cts prior
    Pay May 25
    Record April 20
    Note: Canadian funds


.I 14246
.C
trade
.W
GATT ROUND MAY STOP GROWING TRADE PROBLEMS: U.S.
    TAUPO, New Zealand, March 24 - A successful new GATT
(General Agreement on Tariffs and Trade) round is needed to
halt growing bilateral trade problems between major trading
partners, U.S. Trade Representative Clayton Yeutter said.
    Yeutter, in New Zealand for informal GATT ministerial
talks, told Reuters bilateral trade disputes are increasing
because the multilateral system is inefficient.
    "That is really a strong rationale why we need a new GATT
round," he said. "The very existence of all these bilateral
irritants clearly emphasises the need to develop multilateral
solutions to some of these problems."
    The eighth GATT round of negotiations was launched at Punta
del Este in Uruguay in September 1986. Agriculture and services
were included in the negotiations for the first time.
    The growing debt burden of Latin American and African
nations will also provide impetus for the GATT round to
succeed, he said. "Clearly those countries need to develop their
export endeavours and they need open markets for that to happen
and that's the basic objective of the new GATT round."
    But he said the GATT round is a long term endeavour. It
will not give any short term relief for debt ridden countries,
but it will make a difference in 10 to 15 years.
    "It's a worthwhile activity from their standpoint because
these debts are not going to go away in the next year or two,"
he said.
    "They ought to be very strongly supported in the GATT round
as a mechanism for relieving their debt burdens or making
possible debt amortisation in the future," he said.


.I 14247
.C
cpi
.W
BELGIAN MARCH CONSUMER PRICES RISE.
    BRUSSELS, March 24 - Belgian consumer prices rose 0.11 pct
in March from February to stand 1.27 pct above the level in
March 1986, the Economic Affairs Ministry said in a statement.
    It said the consumer price index, base 1981, rose to 132.83
points from 132.69 in February and 131.17 in March 1985.
    Year-on-year inflation stood at 1.00 pct in February and at
1.53 pct in March 1986.


.I 14249
.C
money-fx
.W
U.K. MONEY MARKET GIVEN FURTHER 104 MLN STG HELP.
   LONDON, March 24 - The Bank of England said it provided the
money market with assistance of 104 mln stg in the afternoon
session.
    This takes the bank's total help so far today to 219 mln
stg and compares with its estimate of a 300 mln stg shortage.
    The central bank bought outright 104 mln stg in bank bills
in band two at 9-13/16 pct.


.I 14251
.C
acq
.W
PRINCEVILLE <PVDC> GETS LETTER OF CREDIT.
    NEW YORK, March 24 - <Qintex Ltd> of Brisbane said <Westpac
Banking Corp> of Australia has issued a commitment letter to
provide Princeville Development Corp with the letter of credit
required under Qintex's proposed acquisition of Princeville.
    The letter of credit would ensure payment of Princeville's
contingent subordinated notes to be distributed to shareholders
of record on the day immediately following completion of
Qintex's tender for 3,300,000 Princeville share. It said
issuance of the letter of credit is still subject to conditions
including appropriate documentation, but the letter is expected
to be issued around April Three.
    Qintex said as a result it has extended its tender offer
for Princeville shares until April Three.
    It said through yesterday it had received 7,424,292 shares
under the offer.


.I 14252
.C
earn
.W
ADVANCED COMPUTER TECHNIQUES <ACTP> YEAR NET.
    NEW YORK, March 24 -
    Shr 41 cts vs 30 cts
    Net 700,000 vs 526,000
    Revs 15.2 mln vs 14.7 mln


.I 14253
.C
earn
.W
NEWS CORP <NWS> UNIT CORRECTS DIVIDEND RATE.
    NEW YORK, March 24 - News Corp Ltd's Fox Television
Stations Inc subsidiary said it will pay an accrued dividend of
5.44 dlrs per share, not the 5.83 dlrs it reported earlier, in
connection with the April 15 redemption of 230,000 shares of
increasing rate exchangeable guaranteed preferred stock for
1,000 dlrs per share plus accrued dividends.


.I 14254
.C
earn
.W
MCRAE INDUSTRIES <MRI-A> INCREASES PAYOUT.
    MT GILEAD, N.C., March 24 - McCrae Industries Inc said it
raised its preferred dividend on its Class A common stock to 12
cts per share from 11 cts per share.
    It said the dividend was payable April 20, 1987, to
shareholders of record April 6.


.I 14255
.C
acq
.W
COLUMBIA FIRST <CFFS> TAKES OVER BANK.
    WASHINGTON, March 24 - Columbia First Federal Savings and
Loan Association said it has acquired the insured deposits of
first Federal of Maryland, based in Hagerstown, from the
Federal Savings and Loan Insurance Corp and reopend First
Federal's six former offices as Columbia First branches.
    The Federal Home Loan Bank Board had closed First Federal
on March 20 because it was insolvent.  First Federal had assets
of 115.2 mln dlrs.


.I 14256
.C
dlr;money-fx;
.W
N.Y. DEALERS BELIEVE FED INTERVENED TO BUY DLRS.
    NEW YORK, March 24 - The Federal Reserve appears to have
intervened in the U.S. foreign exchange market to buy dollars
against yen this morning, currency dealers said.
    They said the intervention occurred near the dollar's early
low of 148.50 yen and the U.S. currency subsequently firmed to
149.05/15. It closed at 150.00/05 on Monday.
    Dealers were uncertain of the amount involved and whether
the Fed's purchases were for its own account or for a customer.
But there was speculation that it may have been done in
conjunction with the Bank of Japan. Tokyo dealers said the
Japanese central bank bought dollars in Tokyo earlier today.



.I 14257
.C
earn
.W
CHARMING SHOPPES INC <CHRS> RAISES QUARTERLY.
    BENSALEM, Pa., March 24 -
    Qtly div three cts vs 2-1/2 cts prior
    Pay April 15
    Record April Six


.I 14259
.C
earn
.W
ANGELICA CORP <AGL> 4TH QTR JAN 31 NET.
    ST. LOUIS, MO., March 24 -
    Shr 47 cts vs 40 cts
    Net 4,399,000 vs 3,768,000
    Sales 76.6 mln vs 68.0 mln
    Year
    Shr 1.79 dlrs vs 1.84 dlrs
    Net 16,701,000 vs 17,159,000
    Sales 291.7 mln vs 269.1 mln
    NOTE: FiscaL 1987 year based on 53 weeks compared wqith 52
weeks a year earlier.


.I 14261
.C
earn
.W
GULL INC <GLL> 3RD QTR FEB 28 NT.
    SMITHTOWN, N.Y., March 24 -
    Shr 22 cts vs 14 cts
    Net 917,000 vs 553,000
    Sales 16.1 mln vs 13.6 mln
    Avg shrs 4,195,000 vs 4,090,000
    Nine mths
    Shr 70 cts vs 29 cts
    Net 2,852,000 vs 1,086,000
    Sales 49.2 mln vs 40.7 mln
    NOTE: Prior nine mths net includes gain 250,000 dlrs from
insurance payment.


.I 14262
.C
earn
.W
AMERIANA SAVINGS BANK <ASBI> 4TH QTR NET.
    NEW CASTLE, Ind., March 24 -
    Shr not given
    Net 328,000 vs 99,000
    Year
    Shr not given
    Net 1,694,000 vs 998,000
    NOTE: Company went public in February 1987.
    Net includes pretax loan loss recovery 41,000 dlrs vs
provision 50,000 dlrs in quarter and provisions 135,000 dlrs vs
50,000 dlrs in year.


.I 14263
.C
earn
.W
GRIFFIN TECHNOLOGY INC <GRIF> 4TH QTR NET.
    VICTOR, N.Y., March 24 - Ended Jan 31
    Shr loss one ct vs loss eight cts
    Net loss 25,800 vs loss 157,100
    Revs 2,323,500 vs 1,930,400
    Year
    Shr profit 19 cts vs profit four cts
    Net profit 401,100 vs profit 93,100
    Revs 10.3 mln vs 8,807,000


.I 14265
.C
ship;livestock;
.W
HONDURAS SEEKS PL480 VESSELS FOR TALLOW DELIVERY.
    WASHINGTON, March 24 - Honduras will tender March 26 under
PL480 for U.S. and non-U.S. flag vessels to import 1,500 tonnes
of tallow in bulk, an agent for the country said.
    The agent said delivery includes laydays of April 5-15.
    Offers are due by 1200 hrs EST, March 26, and will remain
valid until the close of business the following day, the agent
said.


.I 14266
.C
earn
.W
PETRIE STORES CORP <PST> 4TH QTR JAN 31 NET.
    SECAUCUS, N.J., March 24 -
    Shr 90 cts vs 97 cts
    Shr diluted 82 cts vs 88 cts
    Net 42.1 mln vs 43.0
    Revs 379.3 mln vs 352.7 mln
    Avg shrs 46.8 mln vs 44.3 mln
    Avg shrs diluted 52.6 mln vs 50.0 mln
    Year
    Shr 1.58 dlrs vs 1.81 dlrs
    Shr diluted 1.50 dlrs vs 1.76 dlrs
    Net 73.7 mln vs 77.9 mln
    Revs 1.20 billion vs 1.16 billion
    Avg shrs 46.8 mln vs 43.0 mln
    Avg shrs diluted 52.6 mln vs 45.6 mln


.I 14267
.C
trade
.W
INDONESIA URGED TO DEREGULATE ITS ECONOMY.
    JAKARTA, March 24 - World Bank President Barber Conable
linked increased borrowing by Indonesia, the Third World's
sixth largest debtor, to fresh measures to deregulate trade and
dismantle protectionist barriers.
    "We would like to see the Indonesian government continue the
adjustment process ... To move towards increased deregulation
of the economy," Conable told a press conference at the end of a
three-day visit to Jakarta.
    Conable directly linked further Bank help for Indonesia's
hard-pressed balance of payments to further measures by the
government to reduce protectionism and increase efficiency.
    The World Bank last month granted Indonesia a 300 mln dlr
trade adjustment loan. He said further loans would depend on
the economic policies Indonesia adopted.
    But he said that in meetings with both President Suharto
and leading Indonesian ministers he had not called for specific
policy changes.
    "The initiative will have to rest with the Indonesian
government. We are not here to dictate to them," he stated.
    Indonesia, the only Asian member of Opec, has been badly
hit by last year's slump in oil prices which cut its revenues
from crude exports in half.
    Conable had what he termed a frank meeting this morning
with Suharto.
    He voiced support for measures already taken, including
September's 31 pct devaluation of the rupiah, and efforts to
deregulate imports and stimulate exports.
    "The government can rely on the support of the World Bank in
a continuing program of adjustment to the economic realities of
today's world," he said.
    The Bank has loaned Indonesia 10.7 billion dlrs over the
past 20 years. Lending is now about one billion a year.
    The World Bank would probably like to see further
dismantling of tarrif barriers and measures to reduce
Indonesia's protected monopolies in areas like steel, plastics
and cement, western bankers and diplomats said.
    The government has already said it will announce further
deregulation measures, but has given no timetable. It is also
considering selling off loss-making state companies.
    Conable said the Bank would try to help Indonesia find
funds to cover its share of development projects, which
otherwise would have to be scrapped or postponed. Japan's Ex-Im
bank announced a 900 mln dlr untied credit last month.


.I 14268
.C
acq
.W
ARGYLL SELLS SUBSIDIARY'S ASSETS FOR 14 MLN STG.
    LONDON, March 24 - Food and drink retailer Argyll Group Plc
<AYLL.L> said it has agreed to sell its U.K. Subsidiary <George
Morton Ltd> to <Seagram United Kingdom Ltd> for about 14 mln
stg in cash.
    The consideration for Morton's fixed assets, stocks,
debtors and goodwill is payable on completion of the sale. The
disposal will bring Argyll an extraordinary credit of some 8.4
mln stg.
    Argyll added the agreements also depend on an indication
from the U.K. Office of Fair Trading by June 23 that the sale
will not be referred to the Monopolies Commission. Argyll
shares were up 12p to 440, firming before the announcement.


.I 14269
.C
ship;crude;
.W
IRAN WARNS U.S. NOT TO INTERVENE IN THE GULF.
    LONDON, March 24 - The speaker of the Iranian Parliament,
Hojatoleslam Akbar Hashemi Rafsanjani, warned the U.S. Not to
intervene in the Gulf, a day after Washington said its warships
were available to escort Kuwaiti tankers through the waterway.
    "If U.S. Intervention occurs, the entire world will become
insecure for the Americans and the events of Lebanon could be
repeated for the Americans everywhere," he said.
    U.S. Defence officials disclosed in Washington yesterday
that the U.S. Navy, which has about 24 warships in or near the
Gulf, was prepared to escort Kuwaiti tankers, regular targets
for Iranian attacks in an offshoot of its war with Iraq.
    Rafsanjani, in an interview reported by the Iranian news
agency IRNA, also commented on earlier U.S. Disclosures that
Iran had erected sites for new Chinese-made Silkworm
anti-shipping missiles at the Strait of Hormuz.
    The agency, received in London, quoted him as saying that
Iran did not need missiles to close the strait, 24 miles wide
at its narrowest, because "we can close it with artillery only."
    He added "We have the longest coasts and the highest
interest here and the small southern (Gulf) states have a
lesser interest compared with us and therefore it is natural
for us to protect the security of the Strait of Hormuz more
than others."


.I 14270
.C
earn
.W
VALLEN CORP <VALN> 3RD QTR FEB 28 NET.
    HOUSTON, March 24 -
    Shr 24 cts vs 33 cts
    Net 347,000 vs 469,000
    Sales 16.5 mln vs 14.0 mln
    Nine mths
    Oper shr 93 cts vs 94 cts
    Oper net 1,327,000 vs 1,342,000
    Sales 48.8 mln vs 34.5 mln
    NOTE: Current nine mths net excludes 756,000 dlr gain from
termination of pension plan.


.I 14274
.C
gnp;cpi;trade;jobs;retail;inventories;
.W
U.S. ECONOMY SHOWS PROMISING SIGNS OF GROWTH.
    By Donna Smith, Reuters
    WASHINGTON, March 24 - The U.S. economy is showing some
promising signs of accelerated expansion despite the
sluggishness of the fourth quarter last year, private
economists say.
    Some of the slowness experienced in the October-December
period had been expected to spill over into the first quarter
this year, as the tax law changes that went into effect in
January slowed business and consumer spending.
    But some of the latest economic data show signs of
surprising strength in the U.S. economy, although some
economists remain cautious about the outlook.
    The Commerce Department reported today that new orders for
durable goods in February jumped by 5.7 billion dlrs, a six pct
rise, to 101.2 billion dlrs. Even excluding volatile defense
goods, durable goods orders rose a healthy 3.8 pct, the agency
said.
    The February numbers surpassed the expectations of many
financial analysts, whose predictions ranged from flat to
increases of up to five pct.
    The January/February employment statistics suggest the
Gross National Product will show a healthy rate of growth for
the first three months of this year, said Lyle Gramley, an
economist with the Mortgage Bankers Association.
    The U.S. jobless rate in February and January was 6.7 pct,
the lowest rate since March 1980. The number of new non-farm
jobs rose by 337,000 in February after a 319,000 gain in
January and a 225,000 December increase, the government said.
    The employment data suggests a GNP annual growth rate of
about three to 3.25 pct in the first quarter, said Gramley.
    Much of that will be attributed to businesses rebuilding
their inventories and is not likely to be sustained in the
second quarter, Gramley said. He expects a slowdown in the
second quarter with smaller increases in personal consumption
and government spending. He also sees residential construction
declining mostly for multi-family housing units.
    Fidelity Bank senior economist Mickey Levy said some of the
fourth quarter slowness will continue.
    Levy predicts GNP will grow at a scant 1.5 pct rate in the
first quarter of 1987, accelerate during the second quarter and
show a brisk 4.5 pct annual rate in the third quarter.
    The key to both forecasts is a marked improvement in the
U.S. trade balance which is expected because of the decline in
the dollar's value over the last year and half.
    "The improvement will be gradual and long lasting," Levy
predicted. Most of it will be through import reduction, but at
least one-third will be due to a rise in product exports as the
prices of U.S. goods become more attractive overseas.
    The Reagan administration has predicted the trade deficit,
which soared to record levels last year, will improve this year
and the U.S. economy will grow by a respectable 3.2 pct for the
year compared with a 2.5 pct rate last year.
    As part of the effort to reduce the trade deficit, the U.S.
has been pressing West Germany and Japan to stimulate their
domestic demand for goods from the U.S. and others.
    U.S. officials believe that would help take some of the
pressure off the United States whose five years of economic
growth has been the mainstay of developing countries.
    The U.S. economy provided them with a giant market for
their goods giving them a way to earn income badly needed to
service their foreign debt.
    The government last week said the U.S. economy grew at a
modest 1.1 pct annual rate during the fourth quarter.
    There were indications of improvement in the huge imbalance
between the volume of goods imported to the United States and
those shipped abroad. The report showed a rising volume of
exports corresponding to a decline in imports despite the fact
that in current dollar terms, the U.S. trade deficit worsened
during the closing three months of 1986.
    While fourth quarter economic growth was weak, corporate
profits jumped a healthy 6.1 pct during the period, the
government said. It also reported that inflation, as measured
by the GNP price deflator, remained in check, growing a
moderate 0.7 pct in the period, the lowest rise in 19 years.
    The government also reported that consumer spending, a key
element of the five year economic recovery, jumped 1.7 pct in
February, after falling two pct in January.
    The Federal Reserve Board also reported that the
manufacturing sector, which had been one of the weaker elements
of the U.S. economy, was showing signs of recovery.
    In its latest report on current economic conditions, the
Fed said that economic activity in the various regions of the
country ranged from uneven or steady to improving.
Manufacturing activity showed signs of improvement in most
regions except Dallas where orders remained sluggish.
    Chase Econometrics Chairman Lawrence Chimerine said the
pick up in the U.S. manufacturing sector is largely due to the
drop in the dollar's value. He said he does not foresee a major
pick up in economic activity, but does not believe the economy
will slip into recession either.
    He said higher prices on imported products and wage cuts
that have helped the manufacturing sector will squeeze
consumers purchasing power.
    "That pattern is starting and will continue for a number of
years," Chimerine said. He sees economic growth hovering around
a modest two pct level for the next few years.


.I 14276
.C
crude
.W
SHELL TO DECLARE NORWAY'S DRAUGEN FIELD COMMERCIAL.
    STAVANGER, Norway, March 24 - <A/S Norske Shell>, Royal
Dutch/Shell Group's <RD.AS> Norwegian subsidiary, said it has
nearly concluded a 10 billion crown development scheme for
Norway's Draugen oil field and will declare the field
commercial in the near future.
    Pending government approval of the scheme, the field could
come on stream in 1992, making it Norway's northermost field
development and the first such project on the Haltenbanken
tract off central Norway.
    Work on the project could begin as early as January 1988, a
Shell spokesman said.
    Shell has not released projected output levels for the
field, where water depth is 240-270 meters.
    The spokesman said the field's partners have agreed to
develop Draugen with a 300-meter, single-leg concrete
gravity-base platform.
    The scheme also proposes using remote subsea production
wells to tap the field's reservoir, estimated to contain 375
mln barrels of oil, and an offshore buoy-loading system to
transport oil from the field by ship.
    Partners on Draugen are Shell, the operator, with a 30 pct
stake, British Petroleum Co Plc <BP.L> unit <BP Petroleum
Development (Norway) Ltd> (20 pct) and state-owned Den Norske
Stats Oljeselskap A/S <STAT.OL> (Statoil) (50 pct).


.I 14277
.C
acq
.W
BOND CORP HAS NO COMMENT ON ALLIED SPECULATION.
    LONDON, March 24 - Bond Corp Holdings Ltd  <BONA.S> of
Australia said it had no comment on an article in a London
evening newspaper speculating on its plans for a bid approach
to U.K. dDrinks and food giant Allied Lyons Plc <ALLD.L>.
    Tony Oates, Bond Corp's Executive Director for Finance and
Administration, said "The company does not comment on market
rumors or press conjecture." He added in all instances of this
kind problems are likely to arise whatever is said.
    Allied's shares were 3p up at 401p, which values the
company at around 2.75 billion stg.
    London stock market analysts specializing in brewery shares
viewed a bid from Bond, which they said has assets of around
two billion stg, as highly unlikely.
    They added that rumours of a possible bid for Allied have
surfaced from time to time in the press and the London equity
market ever since last year's thwarted approach from Elders IXL
Ltd <ELXA.S> of Australia.


.I 14278
.C
gold
.W
S. AFRICA GOLD MINING INDUSTRY HAD RECORD YEAR.
    JOHANNESBURG, March 24 - The gold mining industry had
another "exceptional year" in 1986 with tonnage milled, revenues
and profits reaching high levels, the Chamber of Mines said.
    Nearly 108 mln tons of ore was milled, three pct higher
than the prior year, while revenues rose 17 pct to 16.5 billion
rand and profits increased 6.5 pct to 8.31 billion rand, the
Chamber reported.
    The profit rise was achieved despite substantial cost
increases and a 26.1 pct rise in capital expenditures to 2.42
billion rand, it said.
    The chamber said that a "comparatively buoyant gold price
allowed mines to continue the practise of mining lower grade
ores which has characterised recent years."
    It said the industry now mines to an average grade of 5.63
grams per ton compared with 6.09 grams per ton in 1985.
    Gold output for the year declined five pct to 638 tons
compared with the previous year's 671 tons.


.I 14279
.C
acq
.W
******CLAREMONT TELLS SEC IT SEEKS 15 PCT CHAMPION PRODUCTS STAKE, TWO BOARD SEATS.
Blah blah blah.

.I 14280
.C
wheat;grain;barley;corn;cotton;sorghum;rice;oat;
.W
RICE, CORN LEAD 1987 U.S. FARM PAYMENTS - USDA.
    WASHINGTON, March 24 - Rice and corn farmers will receive
the largest payments from the U.S. government during 1987 if
the subsidies are calculated per planted acre, the U.S.
Agriculture Department said.
    USDA said government outlays to rice farmers in 1987 are
expected to reach 403 dlrs per acre planted, followed by corn
at 135 dlrs per planted acre. Government outlays include mainly
deficiency payments and price support loans.
    On a per acre basis, cotton payments will reach 73.24 dlrs
in 1987, wheat 60.30 dlrs, sorghum 54.38 dlrs, barley 27.41
dlrs and oats 2.31 dlrs, USDA said.
    USDA estimates farm subsidies will reach 25.3 billion dlrs
in 1987. The figures were given by USDA officials at a Senate
Agriculture Appropriations hearing yesterday.


.I 14281
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 10 MLN STG LATE ASSISTANCE.
    LONDON, March 24 - The Bank of England said it provided the
money market with late help of about 10 mln stg.
    This takes the bank's total help today to some 229 mln stg
and compares with its forecast of a 300 mln stg shortage.


.I 14282
.C
earn
.W
VOLVO GROUP COMPANY PROPOSES TWO-FOR-FIVE ISSUE.
    STOCKHOLM, March 24 - <AB Catena>, in which AB Volvo
<VOLV.ST> has a 48 pct stake, said it was proposing a
two-for-five stock issue that will raise the company's equity
capital to 420 mln crowns from 300 mln.
    Catena reported profits after financial income and costs up
to only 231 mln crowns from 207 mln in 1985, despite an
increase in sales to 8.54 billion crowns from 5.59 billion in
1985.
    The company said that its 1986 performance was best
reflected by earnings after writeoffs, which rose to 310 mln
from 221 mln in 1985.
    Catena's increase in sales was mainly due to the takeover
of Safveans AB in February 1986, which changed the business
profile of Catena. It had principally operated as a Volvo
dealer. With the Safveans acquisition it is now mainly a
trading and industrial company.
    In December 1986 Catena sold its share in the stockbroking
firm Jacobson och Ponsbach Fondkommission AB. This yielded a
profit of 386.7 mln crowns and was reflected in Catena's
pre-tax earnings which rose to 724 mln crowns from 204 mln in
1985.


.I 14286
.C
crude
.W
U.S. ENERGY SECRETARY OPTIMISTIC ON INCENTIVES.
    HOUSTON, March 24 - U.S. Department of Energy Secretary
John Herrington said he was "optimistic" about the chances of
providing a more generous depletion allowance for oil and gas
producers, but added that the plan faces strong opposition from
some members of the Reagan administration.
    Herrington, speaking to Houston oil executives at a
breakfast meeting, said administration debate over his plan for
a 27.5 pct annual depletion allowance was "heavy and strong"
largely because of some fears that the U.S. oil industry could
eventually become as dependent on federal subsidies as the
agriculture industry.
    Herrington's proposed tax incentives for the oil industry
were issued last week after the Department of Energy released a
comprehensive report finding U.S. national security could be
jeopardized by rising oil imports.
    In response to a question from Mitchell Energy and
Development Corp <MND> chairman, George Mitchell, Herrington
said the report did not definitively rule out an oil import
tarrif. "We intend to keep that debate open," Herrington said.
    However, following his speech, Herrington told Reuters that
the new report shows an oil import fee "is not economical."
    Herrington said, for example, a 10 dlr per barrel tariff on
oil imports would cause the nation's gross national product to
drop by as much as 32 billion dlrs.
    Herrington also said he believed President Reagan, who
requested the comprehensive national security study, was
committed to some action to help the ailing U.S. oil industry.
    "I'm quite confident he understands the problems and is
prepared to do something about it," Herrington said.


.I 14288
.C
earn
.W
COMMERCIAL METALS CO <CMC> 2ND QTR FEB 28 NET.
    DALLAS, March 24 -
    Shr 23 cts vs 34 cts
    Net 2,091,000 vs 3,053,000
    Revs 203.5 mln vs 215.7 mln
    Avg shrs 8,967,719 vs 8,863,945
    1st half
    Shr 40 cts vs 69 cts
    Net 3,616,000 vs 6,111,000
    Revs 411.8 mln vs 418.1 mln
    Avg shrs 8,958,100 vs 8,850,656


.I 14289
.C
earn
.W
GEO. A. HORMEL <HRL> VOTES TWO-FOR-ONE SPLIT.
    AUSTIN, MINN., March 24 - Geo. A. Hormel and Co said its
directors voted a two-for-one split, payable June one, record
April 18.


.I 14292
.C
acq
.W
CLAREMONT TO BOOST CHAMPION PRODUCTS <CH> STAKE.
    WASHINGTON, March 24 - Claremont Group Ltd, a New York
investment banking firm, said it intends to boost its current
10 pct stake in Champion Products Inc to as much as 15 pct of
the total outstanding common stock.
    Claremont added that it asked Champion to put two
representatives on its nine-member board of directors.
    Claremont previously disclosed in December that it had
agreed to act in concert with Walsh, Greenwood and Co, an
affiliated investment firm, to acquire Champion Products.
    Claremont said it made net purchases of 7,800 Champion
Products shares between Jan. 28 and March 18.
    In a March 20 letter to Champion Chairman John Tanis,
Claremont and Walsh representatives Stephen Walsh and John
Cirigliano said they were pleased with the company's
performance but wanted to take an active management role.
    "We believe that Champion Products has just begun to evolve
into the market leader it will eventually become," they said. "As
significant shareholders with mutual interests with the
company, we would like to actively participate in this process."
    Claremont's intentions and the letter were made public in a
filing with the federal Securities and Exchange Commission.


.I 14298
.C
earn
.W
<SHELL U.K. LTD> YEAR 1986.
    LONDON, March 24 -
    Sales proceeds 6.57 billion stg vs 8.81 billion
    Duty and value added tax 1.84 billion vs 1.60 billion
    Net proceeds 4.73 billion vs 7.21 billion
    Net profit 757 mln vs 667 mln
    Average capital employed 3.63 billion vs 3.71 billion
    Capital and exploration expenditure 644 mln vs 618 mln
    Cash surplus 423 mln vs 584 mln.
    NOTE - Company is wholly owned subsidiary of Royal
Dutch/Shell Group <RD.AS>


.I 14299
.C
acq
.W
CYCLOPS <CYL> SAYS DIXONS AGREEMENTS BINDING.
    PITTSBURGH, March 24 - Cyclops Corp said that as it has
already stated, its agreements with <Dixons Group PLC> are
binding and Dixons will not rescind or waive any provisions of
the agreements.
    The company said its agreement to merge into Dixons does
not permit it to provide nonpublic information to <CYACQ>,
which is making a competing offer for Cyclops, that had been
provided to Dixons.
    It said other provisions Dixons will not waive include its
rights to recover breakup fees or expenses from Cyclops or buy
Cyclops common shares from Cyclops.
    Cyclops noted that Dixons' waiver of rights to breakup fees
or the purchase of common stock directly from Cyclops and the
provision of nonpublic information to CYACQ are conditions to
CYACQ's increased 92.50 dlr per share offer to acquire Cyclops
shares.
    Dixons is tendering for Cyclops shares at 90.25 dlrs a
share.  Yesterday Citicorp <CCI>, with Audio/Video Affiliates
Inc <AVA> an owner of CYACQ, said it had offered to acquire
from Dixons after the merger of Cyclops into Dixons Cyclops'
industrial businesses for 12.8 mln dlrs more than Alleghany
Corp <Y> is currently scheduled to pay for them.
    Citicorp said yesterday that its proposal would allow
Dixons to raise its tender price to 93.25 dlrs per share. 
Citicorp said if Dixons accepted the proposal, CYACQ would
terminate its competing offer for Cyclops.


.I 14301
.C
acq
.W
<J.M. RESOURCES INC> IN MERGER AGREEMENT.
    DENVER, March 24 - J.M. Resources Inc said it has acquired
a 90 pct interest in DEI Acquisition Corp from InterFirst
Venture Corp, Sam B. Myers, Neomar Resources Inc and Richard L.
Morgan, all of Dallas, for warrants to acquire 10.1 mln shares
of J.M. stock and three mln dlrs of notes.
    The warrants are exercisable at par value, currently 10 cts
per share, until March 20, 1997.  The company said if the
warrants were exercised in full, they would represent a 40.7
pct interest in J.M. common stock.  It said amounts due under
the notes are payable soleley from proceeds of the sale of
securities by J.M. and non-oil and natural gas revenues of DEI.
    J.M. said DEI provides specialty insulation installation
and asbestos removal services.
    J.M. said all of its directors except Jack E. Manning Jr.
have resigned and Myers and Morgan were named to the board.
    It said Manning has resigned as president in favor of Myers
and will service as vice president in charge of oil and natural
gas operations.


.I 14302
.C
acq
.W
ASTROTECH <AIX> DIRECTOR BUYS COMPANY STOCK.
    PITTSBURGH, March 24 - Astrotech International Corp said
its director S. Kent Rockwell, who controls Rockwell Venture
Capital Inc, will buy 27 pct of the company's cumulative
preferred stock.
    It said will buy up to 302,300 shares of Astrotech's 1.80
dlrs cumulative preferred stock.
    It said the shares are owned by W.F. Rockwell Jr, chairman
and chief executive officer of Astrotech and S. Kent Rockwell's
father.


.I 14305
.C
earn
.W
AMERICAN CYANAMID <ACY> CHANGES RECORD DATE.
    WAYNE, N.J., March 24 - American Cyanamid Co said subject
to approval by its board it has changed the record date for the
quarterly dividend it will pay on June 26 to May 8 from May 29
to coincide with the record date for a two-for-one stock split
that was declared at the same time.
    The dividend on a post-split basis is 26-1/4 cts per share.


.I 14306
.C
earn
.W
PNEUMATIC SCALE CO <PNU> SETS QUARTERLY.
    NORTH QUINCY, Mass., March 24 -
    Qtly div 25 cts vs 25 cts prior
    Pay May 4
    Record April 20


.I 14309
.C
earn
.W
CURTICE-BURNS FOODS INC <CBI> RAISES PAYOUT.
    ROCHESTER, N.Y., March 24 -
    Qtly div 26 cts vs 24 cts prior
    Pay April 30
    Record April 15


.I 14312
.C
earn
.W
HYDRAULIC <THC> SPLITS 3-FOR-2, HIKES DIVIDEND.
    BRIDGEPORT, Conn., March 24 - The Hydraulic Co said its
board approved a three-for-two stock split of its common stock
and increased its quarterly cash dividend.
    It said the stock split will occur through a 50 pct stock
distribution on Hydraulic's common stock, payable April 30 to
stockholders of record on April 3.
    The quarterly cash dividend, payable April 15 to
stockholders of record on April 3, is to be paid on Hydraulic's
pre-split shares that are currently outstanding, the company
said.
    The dividend will be 54.75 cts per share, up from 52 cts
per share.It will represent a quarterly common stock cash
dividend of 36.50 cts per share on the share that will be
outstanding after the stock split, the company said.


.I 14314
.C
earn
.W
HUGHES SUPPLY INC <HUG> 4TH QTR NET.
    ORLANDO, Fla., March 24 -
    Shr 52 cts vs 49 cts
    Shr diluted 1.95 dlrs vs 1.99 dlrs
    Net 1,751,609 vs 1,622,503
    Sales 85.9 mln vs 85.1 mln
    Year
    Shr 2.10 dlrs vs 1.99 dlrs
    Shr diluted 1.95 dlrs vs 1.99 dlrs
    Net 6,822,493 vs 6,601,717
    Sales 347.8 mln vs 324.6 mln


.I 14315
.C
earn
.W
PREWAY INC <PREW> 4TH QTR LOSS.
    STAMFORD, CONN., March 24 - 
    Shr loss 64 cts vs loss 1.29 dlrs
    Net loss 5,732,000 vs loss 4,924,000
    Sales 18.8 mln vs 23.6 mln
    Avg shrs 9.0 mln vs 3.8 mln
    Year
    Shr loss 1.82 dlrs vs loss 3.65 dlrs
    Net loss 12,267,000 vs loss 13,911,000
    Sales 112.8 mln vs 129.3 mln
    Avg shrs 6.7 mln vs 3.8 mln


.I 14316
.C
acq;ship;
.W
MOORE-MCCORMACK <MMR> COMPLETES UNIT SALE.
    STAMFORD, Conn., March 24 - Moore McCormack Resources Inc
said it has completed the previously-announced sale of its
Interlake Steamship Co and Moore McCormack Bulk Transport Inc
Great Lakes and ocean bulk shipping units to James R. Barker.
    The company said president Paul Tregurtha has succeeded
Barker as chairman and chief executive officer of Moore
McCormack.


.I 14317
.C
money-fx
.W
SUDAN REJECTS IMF DEMAND FOR DEVALUATION.
    CAIRO, March 24 - Sudan has rejected a demand by the
International Monetary Fund for a currency devaluation because
such a move would have a negative impact on its economy, the
official Sudan News Agency (SUNA) reported.
    Finance Minister Beshir Omer, quoted by SUNA, said his
government also rejected an IMF demand to lift state subsidies
on basic consumer goods.
    SUNA, monitored by the British Broadcasting Corporation,
said Omer made the remarks after a meeting in Khartoum
yesterday with IMF envoy Abdel-Shakour Shaalan.
    Sudan, burdened by a foreign debt of 10.6 billion dlrs, is
some 500 mln dlrs in arrears to the IMF, which declared it
ineligible for fresh loans in February last year.
    In February 1985, Sudan announced a 48 pct devaluation of
its pound against the dollar, adjusting the official exchange
rate to 2.5 pounds to the U.S. Currency.
    Since then, it has resisted pressure from main creditors
for more currency adjustments, arguing that past devaluations
had failed to boost exports but raised local consumer prices.
Sudan also has an incentive rate of four pounds to the dollar
for foreign visitors and remittances by expatriate workers.
    Dealers in Khartoum's thriving black market said the dollar
was sold at 5.5 pounds today.
    With stringent import regulations and the government
increasingly short of foreign currency, black market dollars
are used to finance smuggled imports from neighbouring
countries, mainly Egypt, Kenya, Ethiopia and Zaire.
    Western diplomats in Khartoum say the meetings between IMF
and Sudanese government officials do not amount to formal
talks, but rather an effort by the IMF to monitor Sudan's
economic performance.
    The diplomats said Sudan hoped a planned four-year economic
recovery program would be acceptable to the IMF as a serious
attempt to tackle the country's economic troubles and persuade
its Gulf Arab creditors to pay the IMF arrears.
    This, they said, could provide Sudan with a clean bill of
health from the IMF that it could take to Western government
creditors, grouped informally in the so-called Paris Club, to
reschedule debt payments.
    Twenty-three pct of Sudan's total foreign debt is owed to
members of the Paris Club, the diplomats said.
    Sudan's Finance Minister said last month the country's IMF
representative had told him the fund's executive board was "very
pleased with the 18.5 mln dlrs arrears we have paid in the past
couple of months."
    The representative, Omer Said, said IMF Managing Director
Michel Camdessus said he would ask Saudi Arabia, to which Sudan
owes about 1.4 billion dlrs, to help Khartoum to pay more.
    Sudan has an annual debt liability of nearly 900 mln dlrs
but set aside only some 200 mln dlrs to service debts in the
fiscal year ending next June 30.


.I 14318
.C
earn
.W
SOUTHERN NATIONAL CORP <SNAT> SETS STOCK SPLIT.
    LUMBERTON, N.C., March 24 - Southern National corp said its
board declared a three-for-two stock split, payable to
shareholders of record on May 22.
    A company spokeswoman said the payable date for the split
has not yet been fixed but would be shortly after the record
date.


.I 14320
.C
earn
.W
NATIONAL SEMICONDUCTOR<NSM> CITES IMPROVED RESULTS.
    SANTA CLARA, Calif., March 24 - National Semiconductor Corp
said improved results at its Semiconductor Group helped reduce
losses in the third quarter and nine months.
    In the quarter ended March 8, the group had a modest sales
increase and major improvement in operating performance
compared to the year-ago quarter, the company said.
    But results softened from the prior quarter because of low
bookings last fall for third quarter shipment and holiday
shutdowns, it said.
    The semiconductor maker cut net losses to 25.6 mln dlrs or
31 cts a share from 39.4 mln dlrs or 47 cts in the quarter.
    Losses in the nine months were reduced to 32.7 mln dlrs or
44 cts from 84.4 mln dlrs or one dlr. Sales grew 23.5 pct in
the quarter to 398.1 mln dlrs and 25.5 pct in the nine months
to 1.36 billion dlrs.
    Bookings recovered in the latter part of the third quarter,
the company said. Despite the improvement in order rates and
operating results year-to-year, pricing continues to be
"aggressive for many products," it said.
    Nevertheless, it expects the semiconductor business will
continue to improve this year. The Information Systems Group
will continue strong sales growth based on recent order trends
and new product introductions, it said.


.I 14321
.C
grain;sugar;livestock;carcass;
.W
EC COLD AID FOOD SCHEME MAY BE MADE PERMANENT.
    BRUSSELS, March 24 - Emergency action to distribute
European Community (EC) food surpluses to the poor has proved
so successful that the EC executive Commission may propose a
permanent scheme, a Commission spokesman said.
    Almost 60,000 tonnes of food was taken out of EC stores
between January 20, when Agriculture Ministers approved the
scheme, and March 13, according to latest commission figures.
    The food, including 30,000 tonnes of cereals, 6,000 tonnes
of sugar, 4,000 tonnes of beef and 13,300 tonnes of butter, has
been distributed to the needy through charities.
    The present scheme was approved as an emergency measure to
help poor people affected by this year's unusually cold winter
and will end on March 31.
    But the spokesman said the commission will consider whether
to propose it be replaced by an all-year-round system.
    The commission estimates that up to March 13 the temporary
scheme cost between 63 and 68 mln European currency units
(72/78 mln dlrs). This is above the 50 mln Ecu (57 mln dlr)
ceiling originally envisaged by the Ministers.
    However, commission sources said the real cost was small if
account is taken of the expense of keeping food in store until
its quality and value deteriorates.
    On the other hand, the impact of the temporary scheme on EC
food surpluses has been slight. EC surplus food stocks at
January 31 included 1.28 mln tonnes of butter, 520,000 tonnes
of beef and over 10 mln tonnes of cereals.


.I 14323
.C
interest
.W
FED MAY ADD RESERVES, ECONOMISTS SAY.
    NEW YORK, March 24 - The Federal Reserve may intervene in
the government securities market to add reserves today, some
economists said, although others felt that the Fed was likely
to refrain from any action.
    Those who believed the Fed will intervene said it would
probably add temporary reserves indirectly via 1.5 to two
billion dlrs of customer repurchase agreements.
    But others noted the Fed's current add-need is not large.
They also expected the federal funds rate to edge lower.
    Fed funds, which averaged 6.21 pct on Monday, opened at
6-1/8 pct and remained at that level in early trading.


.I 14327
.C
earn
.W
BERLINER BANK OUTLINES LOSSES.
    WEST BERLIN, March 24 - <Berliner Bank AG> has suffered
losses of between 25 mln and 30 mln marks on credits extended
by its Stuttgart branch by bank officials who exceeded their
powers, a bank spokesman said.
    The spokesman, replying to queries about press reports,
said he could not rule out the possibility that the final loss
figure may be slightly above this range.
    Late last week the bank said only that the losses from the
credits in Stuttgart would be in the "double-digit millions."


.I 14329
.C
earn
.W
HUGHES SUPPLY INC <HUG> SETS QUARTERLY.
    ORLANDO, Fla., March 24 -
    Qtly div 10 cts vs 10 cts prior
    Pay May 22
    Record May 8


.I 14331
.C
earn
.W
KLEINERT'S INC <KLRT> 1ST QTR ENDS FEB 28 NET.
    PLYMOUTH MEETING, Pa., March 24 -
    Shr 24 cts vs 18 cts
    Net 359,000 vs 297,000
    Revs 5,724,000 vs 6,430,000
    Avg shrs 1,475,0000 vs 1,668,000
    NOTE: qtrs include tax gain of 147,000 vs 137,000.
    Prior qtr ended March 1, 1986.


.I 14333
.C
crude;nat-gas;
.W
******U.S. SUPREME COURT ALLOWS OFFSHORE ALASKAN OIL AND GAS EXPLORATION.
Blah blah blah.

.I 14335
.C
earn
.W
MICRODYME CORP <MCDY> 1ST QTR FEB ONE LOSS.
    OCALA, Fla., March 24 -
    Shr loss nine cts vs profit two cts
    Net loss 397,000 vs profit 76,000
    Revs 3,763,000 vs 6,467,000
    


.I 14336
.C
crude;nat-gas;
.W
U.S. COURT ALLOWS OFFSHORE ALASKAN EXPLORATION.
    WASHINGTON, March 24 - A unanimous Supreme Court ruled that
oil and gas exploration can proceed on two tracts off the
Alaska coast which were leased by the federal government to
eight major oil companies.
    The ruling was an important victory for the oil companies
and the Reagan administration's controversial off-shore leasing
program and a setback for two small Alaskan villages that
challenged the leases by claiming damage to the environment.
    The administration said that the court-ordered halt in
drilling had created uncertainty over the 4.2 billion dlrs paid
for 621 leases off the shores of Alaska since December 1980.
    A federal appeals court ordered the oil companies to halt
all exploration and remove all drilling rigs from two tracts in
the Bering Sea off Alaska because of possible harm to the
subsistence needs and culture of native Eskimos.
    But the Supreme Court said the appeals court was wrong in
issuing an injunction halting exploration.
    "Here, injury to subsistence resources from exploration was
not at all probable," Justice Byron White wrote for the court.
"And on the other side of the balance of harms was the fact
that the oil companies had committed approximately 70 mln dlrs
to exploration to be conducted during the summer of 1985 which
they would have lost without chance of recovery had exploration
been enjoined," he said.
    The oil companies, Amoco Corp <AN>, ARCO, Exxon Corp <XON>,
Mobil Corp <MOB>, Sohio, Shell, Texaco Inc <TX> and Union Oil,
had said that voiding previously granted leases would result in
staggering financial losses.
    The first lease sale in 1983 involved 2.4 mln acres and
generated 318 mln dlrs while the second lease sale in 1984
covered 37 mln acres and produced 516 mln dlrs.
    Administration officials, saying the lease sales were
preceded by an intense environmental impact study, denied that
the oil and gas exploration would hurt subsistence resources.
    The Alaskan villages of Gambell and Stebbins, along with an
organization of Eskimo natives on the Yukon Delta, argued that
the drilling would hurt native hunting and fishing.


.I 14341
.C
earn;crude;nat-gas;
.W
LOWER TAX OFFSETS LOWER SHELL U.K. UPSTREAM PROFIT.
    LONDON, March 24 - <Shell U.K. Ltd's> pre-tax profit on
exploration and production operations fell to 869 mln stg in
1986 from 2.12 billion in 1985 due to the fall in oil prices
last year, Shell U.K. Finance director Nigel Haslam said.
    But he told a press conference that due to the high
marginal tax rate on North Sea operations, the main impact of
the drop in profit was absorbed by a fall in taxation to 330
mln stg from 1.45 billion in 1985.
    The bulk of tax last year was Corporation Tax, with
Petroleum Revenue Tax (PRT) representing only 16 mln stg, he
said.
    As a result, post-tax profit from the exploration and
production sector fell by only 126 mln stg to 539 mln.
    Earlier, Shell U.K., a subsidiary of Royal Dutch/Shell
Group <RD.AS>, reported an overall net profit of 757 mln stg,
up from 667 mln in 1985, on sales of 6.57 billion stg against
8.81 mln.
    Shell U.K. Chairman Bob Reid said the company's crude oil
output from the North Sea was at a record 373,000 bpd in 1986,
which would almost certainly prove to be a peak for the
company. Shell expects a fall in output of around 10 pct in the
current year to around 340,000 bpd, due mainly to the decline
in output from the major Brent field, he said.
    Gas output of 5.9 billion cubic metres and natural gas
liquids output of around one mln tonnes in 1986 are expected to
be maintained in 1987, he said.
    A final decision on development of the Kittiwake and Osprey
North Sea oil fields will be made in the next 12 to 18 months,
Reid said. The Kittiwake field, originally part of the 2.5
billion stg Gannet project abandoned last year when the oil
price fell, is now estimated to cost around 350 mln stg.
    Economies on development costs for the Tern and Eider North
Sea fields, which were approved last year, have brought the
cost down to 30 to 35 pct below the original budget.
    Day to day operating costs of the exploration and
production sector had been cut 10 pct last year, and the target
is to keep costs per barrel constant.
    The company drilled 17 wells offshore, with 10 leading to
the discovery of hydrocarbons, although it is too early to
gauge the commercial viability of these discoveries, Reid said.
    Restructuring of the downstream oil sector contributed to a
profit rise to 187 mln stg in 1986 from 91 mln stg in 1985.
    Jaap Klootwijk, managing director of downstream unit <Shell
U.K. Oil>, said refining margins in the first quarter of 1987
were a "bit better than the very bad fourth quarter 1986."
    In November and December in particular, refining operations
had shown negative margins following the fall in crude and oil
product prices, he said. He expected margins to continue
generally positive over the summer, although they could dip to
become negative from time to time, depending on price
movements.
    A new catalytic cracker at Shell's Stanlow refinery will
now come on stream by the end of first quarter 1988, about five
months behind schedule, following a crane accident which
severely damaged the plant last year, he said.
    Profits from the chemicals sector rose to 33 mln stg from
11 mln after the rationalisation of the Carrington chemical
site.
    Haslam said the Budget announcement on PRT relief, by which
companies will be allowed to offset up to 10 pct of qualifying
development expenditure on certain future oil fields against
PRT, was "helpful," but rather less than had been hoped for.
    Reid said his estimate of crude oil prices this year was in
the range of 15 to 18 dlrs. If prices went much above that, he
would expect some over-production above OPEC"s official 15.8 mln
bpd output ceiling which would tend to bring prices back down.
    He said it looked as if the December OPEC pact to restrain
output was holding, bringing supply and demand into balance,
but the test will come in summer when demand for OPEC oil will
fall.


.I 14343
.C
acq
.W
******CALNY INC REJECTS PEPSICO INC ACQUISITION OFFER.
Blah blah blah.

.I 14344
.C
acq
.W
DIXONS PLANS TO LET CYCLOPS <CYL> OFFER EXPIRE.
    NEW YORK, March 24 - Dixons Group PLC said it does not plan
to extend the expiration date of its tender offer for any and
all common shares of Cyclops Corp beyond tonight.
    Dixons said it would accept shares validly tendered and not
withdrawn by midnight tonight.
    Dixons, which is offering 90.25 dlrs a share for Cyclops,
said last week it had about 54 pct of Cyclops common shares.
Its offer originally was scheduled to expire March 17 but was
extended for one week.
    Yesterday Citicorp <CCI>, with Audio/Video Affiliates Inc
<AVA> an owner of CYACQ, said it had offered to acquire from
Dixons after the merger of Cyclops into Dixons, Cyclops'
industrial businesses for 12.8 mln dlrs more than Alleghany
Corp <Y> is currently scheduled to pay for them.
    Citicorp said yesterday that its proposal would allow
Dixons to raise its tender price to 93.25 dlrs per share.
Citicorp said if Dixons accepted the proposal, CYACQ would
terminate its competing 92.50 dlr offer for Cyclops.
    Citicorp had suggested yesterday that Dixons extend its
tender until March 31 in connection with the price increase.


.I 14347
.C
earn
.W
INTERNATIONAL CLINICAL LABORATORIES INC <ICLB>.
    NASHVILLE, Tenn., March 24 -
    Shr nine cts vs seven cts
    Net 676,000 vs 509,000
    Revs 48.5 mln vs 39.9 mln
    1st half
    Shr 12 cts vs 17 cts
    Net 923,000 vs 1,248,000
    Revs 94.1 mln vs 79.5 mln
    NOTE:Current half net includes charge 500,000 dlrs from
reversal of investment tax credits.


.I 14350
.C
reserves
.W
NORWEGIAN CENTRAL BANK RESERVES FALL IN JANUARY.
    OSLO, March 24 - Norway's Central Bank reserves totalled
91.06 billion crowns in January, against 93.07 billion in
December and 105.29 billion in January 1986, the central bank
said in its monthly balance sheet.
    Foreign exchange reserves totalled 83.68 billion crowns,
compared with 85.52 billion in December and 99.19 billion
crowns a year ago. Gold reserves totalled 284.7 mln crowns,
unchanged from the previous month and the year-ago figure.
    Central bank special drawing right holdings were 2.82
billion crowns, compared with 2.89 billion in December and 2.13
billion a year ago.


.I 14351
.C
acq
.W
GNB JOINS IN LEVERAGED BUYOUT OF FRENCH UNIT.
    MINNEAPOLIS, Minn., March 24 - <GNB Inc> said it joined
with the management of the French company Compagnie Francaise
d'Electro-Chimie to purchase the company for an undisclosed
amount.
    The French company, which produces lead-acid batteries, had
sales in 1986 of 75 mln dlrs, GNB said.


.I 14356
.C
crude
.W
OIL TAX BREAK RIDICULED BY U.S. HOUSE TAXWRITER.
    WASHINGTON, March 24 - A House taxwriter said Energy
Secretary James Herrington's "outrageous" plan to restore an old
tax break for oil companies was both bad tax and energy policy.
    Rep. Pete Stark, a California Democrat and senior House
Ways and Means Committee member, said Herrington's plan for a
27.5 pct depletion allowance--which in effect is a special 27.5
pct tax deduction --would cost seven billion dlrs a year.
    "He must have missed the last two years of federal tax
reform by sleeping as soundly as Rip Van Winkle," Stark said.
    He said in a statement the oil industry already pays an
effective lower rate of U.S. tax on investment, 15 pct versus
aggregate corporate tax on all investment of 34 pct, according
to a recent Congressional Research Service study.


.I 14357
.C
acq
.W
CALNY <CLNY> REJECTS PEPSICO ACQUISITION OFFER.
    SAN MATEO, Calif, March 24 - Calny Inc said its board
rejected as inadequate the unsolicited offer by PepsiCo Inc
<PEP> subsidiary Taco Bell Corp for all Calny's outstanding
common stock at 11.50 dlrs cash per share.
    Taco Bell recently acquired 9.9 pct of Calny's outstanding
stock, Calny said.
    Calny said it retained Oppenheimer and Co Inc to consider
various financial and strategic alternatives available to the
company.


.I 14358
.C
earn
.W
******K MART CORP RAISES DIVIDEND 17.6 PCT, VOTES THREE-FOR-TWO STOCK SPLIT.
Blah blah blah.

.I 14366
.C
money-fx
.W
FED GOVERNOR SUPPORTS COMMODITY PRICE GUIDE.
    WASHINGTON, March 24 - Robert Heller, a member of the Board
of Governors of the Federal Reserve System, said commodity
prices could form a useful guide for setting domestic and
international monetary policy.
    Speaking to the conservative Heritage Foundation, Heller
said, "A broadly based commodity price index may be worth
exploring" as a guide to monetary policy.
    "In times of rising commodity prices, monetary policy might
be tightened and in times of falling commodity prices, monetary
policy might be eased," he said.
    Commodities are also standardized to avoid measurement
problems and occur at the beginning of production so as to give
"early warning" signs of wholesale and retail changes.
    "There is no need to react to every small fluctuation in
commodity prices or to do so on a daily basis," Heller said in a
prepared text.
    "But if commodity prices exhibit a broad trend, a policy
action might be considered," he said.
    Heller said using a broad-based commodity price index as an
indicator for monetary policy would also contribute to
stabilized currency exchange rates.
    Commodity prices are generally uniform worldwide and prices
for them are more consistent than for other types of goods, he
said.
    He said other beneficial effects would be to stabilize
export commodity prices for developing countries by using a
commodity basket as a guidepost for monetary policy.


.I 14367
.C
earn
.W
K MART <KM> RAISES PAYOUT, VOTES SPLIT.
    TROY, Mich., March 24 - K mart Corp said its board approved
a 17.6 pct increase in the quarterly dividend and declared a
three-for-two stock split.
    The company raised its dividend to 43.5 cts a presplit
share, up from the previous 37 cts a share. After the split,
the new quarterly dividend rate is equivalent to 29 cts a
share. It is payable June Eight, record May 21.
    It said the additional shares will be distributed June
Five, record May 21.


.I 14370
.C
acq
.W
SOUTHMARK <SM> SELLS NATIONAL HERITAGE STAKE.
    DALLAS, March 24 - National Heritage Inc, a unit of
Southmark Corp, said it began an initial public offering of two
mln shares of common stock at a price of 9.50 dlrs a share.
    All the shares are being offered by National Heritage,
which will trade under symbol NHER on Nasdaq, through lead
underwriter Drexel Burnham Lambert Inc.
    Proceeds will be used to increase working capital, complete
renovations at leased facilities and repay certain debts to
Southmark.
    After the offer, Southmark will retain about 82 pct of the
11 mln outstanding common shares of National Heritage, which
operates 201 long-term nursing care facilities.


.I 14371
.C
cocoa
.W
GHANA COCOA PURCHASES STILL AHEAD OF LAST YEAR.
    LONDON, March 24 - The Ghana Cocoa Board said it purchased
456 tonnes of cocoa in the 23rd week, ended March 12, of the
1986/87 main crop season, compared with 684 tonnes the previous
week and 784 tonnes in the 23rd week ended March 20 of the
1985/86 season.
    Cumulative purchases so far this season stand at 217,235
tonnes, ahead of the 203,884 tonnes purchased by the 23rd week
of last season, the board said.


.I 14374
.C
acq
.W
OWENS-ILLINOIS <OI> ACQUISITION COMPLETED.
    NEW YORK, March 24 - OII HoLdings Corp, a concern formed by
Kohlberg Kravis Roberts and Co, said it completed its
previously announced acquisition of Owens-Illinois Inc.
    Under terms of the February 10 agreement, OII paid 60.50
dlrs per common share and 363 dlrs per 4.75 dlrs convertible
preferred share.
    OII said each common share still outstanding at the time of
the merger has been converted into the right to receive 60.50
dlrs per share and all preference shares not converted will be
redeemd on April 22 at a redemption price of 100 dlrs per
preference share plus accrued and unpaid dividends.
    OII said it has assumed Owen's 3-3/4 pct sinking fund
debentures due June 1, 1988, 9.35 pct sinking fund debentures
due November 1, 1999, and 7-5/8 pct debentures due April 1,
2001.
    OII said the New York Stock Exchange said the securities
will be delisted as a result of the merger. OII said it is
anticipated that the securities will be traded in the over-the-
counter market.
    The surviving company will be known as Owen-Illinois Inc,
it said.


.I 14375
.C
acq;gold;silver;lead;zinc;
.W
HECLA <HL> TO BUY MINE STAKE FROM BP <BP> UNIT.
    COEUR D'ALENE, Idaho, March 24 - Hecla Mining Co said it
has agreed to purchase a 28 pct interest in the Greens Creek
Joint Venture from British Petroleum Co PLC's Amselco Minerals
Inc unit.
    The venture expects to bring into production a
gold-silver-lead-zinc ore body on Admiralty Island, Alaska,
containing about 3,500,000 short tons of ore assaying about
0.18 ounce of gold, 24.0 ounces of silver, 9.7 pct zinc and 3.9
pct zinc per short ton, Hecla said.  It said there is
significant potential for the discovery of additional ore.
    Hecla said initial production from a trackless underground
mine is scheduled for late 1988 at a rate of about 1,000 tons
or ore per day.  "At this rate, the Greens Creek mine will be
the largest domestic silver mine and is expected to be one of
the lowest cost producers."
    The company said it estimates its total investment in the
project, including its share of preproduction costs, at about
45 mln dlrs, to be funded through internally generated cash and
existing lines of credit.  It said Amselco will retain a
majority interest in the project.  Other interest holders are
CSX Corp <CSX> and <Exaias Resources Corp>.


.I 14376
.C
acq
.W
CHRYSLER, LAMBORGHINI STILL IN JOINT VENTURE TALKS.
    BOLOGNA, Italy, March 24 - Joint venture talks that could
lead to Chrysler Corp <C> taking a stake in Italian car maker
<Automobili Lamborghini SpA> are continuing, a Lamborghini
spokesman said.
    He told Reuters the two companies are discussing a number
of topics ranging from "a joint venture in the production area
to Chrysler becoming a shareholding partner" in the Italian
firm.
    The spokesman declined to comment on whether Chrysler was
interested in acquiring control of Lamborghini or if the two
sides were close to an accord.
    He said the two companies are discussing the possibility of
jointly developing a sports car aimed primarily at the U.S.
Market.
    The spokesman said Chrysler officials in Detroit had
already visited Lamborghini's production plant in Bologna and
another visit may be scheduled.
    Lamborghini, which is controlled by the Mimran Group of
Switzerland, broke even last year on sales of 29 billion lire,
he said.
    Chrysler also holds a 15 pct interest in Italian sports car
producer <Alfieri Maserati Spa>.


.I 14377
.C
ship;crude;
.W
MOSCOW SUPPORTS FREE GULF NAVIGATION, ENVOY SAYS.
    BAHRAIN, March 24 - The Soviet Union supports the freedom
of navigation in the Gulf and does not support any act which
would cause the deterioration of the situation in the region,
its ambassador to Kuwait, Ernest Zverev, told the Kuwaiti news
agency KUNA.
    "We support the freedom of navigation in the Arabian Gulf
and the Strait of Hormuz," the agency quoted Zverev as saying.
    KUNA also said the envoy had discussed the deployment of
Iranian missiles near the Strait of Hormuz with Kuwaiti Foreign
Undersecretary Suliman Majed al-Shaheen.
    A British naval source in the Gulf said today Iran had
test-fired its new Silkworm missiles and set up launching sites
in the area.
    The tests had been successful and the missiles could be
used against shipping in the strait, the source added.
    But Iranian Parliamentary Speaker Hojatoleslam Akbar
Hashemi Rafsanjani said Iran did not need missiles to close the
strait because "we can close it with artillery only."
    The U.S. Has said it will not allow Iran to use missiles to
choke off oil shipments and offered its warships to escort
Kuwaiti tankers past the missile batteries in the strait.


.I 14378
.C
gold
.W
BELGIUM DETAILS PRICING PLAN FOR ECU GOLD COIN.
    BRUSSELS, March 24 - The 50 European Currency Unit gold
coins which go on sale tomorrow in Belgium will be priced at a
premium of seven pct to the value of the gold they contain, a
Finance Ministry spokesman said. The price will be calculated
daily, based on the daily gold fixing in London.
    Belgium is minting an initial 50,000 gold coins to
celebrate the 30th anniversary of the European Community's
founding Treaty of Rome, but final production is expected to be
around 200,000. Each 17.27 gram coin will contain 55 grams of
fine metal.
    Two mln silver coins, face value five Ecus, will be sold at
500 francs each.


.I 14379
.C
earn
.W
DATA ARCHITECTS INC <DRCH> 1ST QTR FEB 28 NET.
    WALTHAM, Mass., March 24 -
    Shr 19 cts vs 14 cts
    Net 487,000 vs 344,000
    Revs 7,492,000 vs 5,883,000


.I 14380
.C
earn
.W
PASSPORT TRAVEL INC <PPTI> 1ST QTR FEB 28 NET.
    OVERLAND PARK, Kan., March 24 -
    Shr two cts vs nil
    Net 20,406 vs 2,348
    Sales 6,191,000 vs 6,249,000


.I 14381
.C
earn
.W
HI-SHEAR INDUSTRIES INC <HSI> 3RD QTR FEB 28 NET.
    NORTH HILLS, N.Y., March 24 -
    Oper shr 28 cts vs 33 cts
    Oper net 1,647,000 vs 1,910,000
    Revs 19.7 mln vs 17.5 mln
    Nine mths
    Oper shr 82 cts vs 84 cts
    Oper net 4,787,000 vs 8,748,000
    Revs 55.9 mln vs 53.0 mln
    NOTE: Prior year net excludes tax credits of 29,000 dlrs in
quarter and 1,761,000 dlrs in nine mths.
    Prior nine mths net includes gain from sale of real estate
of 3,820,000 dlrs.


.I 14382
.C
earn
.W
PRUDENTIAL RECORDS BEST RESULTS IN SIX YEARS.
    LONDON, March 24 - <Prudential Corporation Plc>, which
earlier announced a 62 pct rise in 1986 pre-tax profits, said
it had recorded its best general insurance result for six years
but had not reached satisfactory levels of profit in other
areas.
    Group Chief Executive Brian Corby told a news conference
that despite returning to trading profits, the International
division and the Mercantile and General division had not
reached satisfactory levels.
    But he said he welcomed Mercantile and General trading
profits in 1986 and was optimistic about both that and the
International division.
    The acquisition of the U.S. Life company <Jackson National>
had a small effect in 1986 but its full effect would be felt in
the 1987 results, Corby said.
    The Group also intended to expand the number of its estate
agency firms bought last year, and hoped they will comprise
between 10 and 15 pct of total company profits in the future.
    "We hope they will be very profitable very shortly. We are
looking for profits from the estate agencies themselves as well
as the insurance products associated with them," Corby said.
    Prudential's pre-tax profits rose from 1985's 110.1 mln stg
to 178.1 mln stg in 1986.


.I 14384
.C
earn
.W
CRS SIRRINE <DA> TO TAKE WRITE-OFF.
    HOUSTON, March 24 - CRS Sirrine Inc said it plans a major
restructuring of its balance sheet that will include a
write-off of between 39 mln and 43 mln dlrs, most of which
would be intangible goodwill from the company's past
acquisitions.
    The company said the remainder of its write-off would
include a one-time expense for future costs related to early
retirement programs, office consolidations and an increase in
the general reserve for adjustments and contingencies.
    Bruce Wilkinson, president of the company, said the charges
to the company's third quarter earnings, for the period ending
March 31, would "significantly impact" third quarter results
but would not affect the company's cash position.
    "We expect to have the biggest operating backlog in the
company's history by June 30, 1987, the end of our fiscal
year," Wilkinson said. "We believe the action being proposed
will begin to contribute to improved earnings in the fourth
quarter of our fiscal 1987 and throughout fiscal 1988."
    The company, which is one of the nation's largest
construction firms, also said termination of its defined
benefit retirement plan would produce a pre-tax benefit of
about 10 mln dlrs due to overfunding of the plan.
    In its second quarter ended Dec. 31, CRSS had net earnings
of 800,000 dlrs on revenues of 82.5 mln dlrs.


.I 14386
.C
earn
.W
FLOWERS INDUSTRIES INC <FLO> 3RD QTR MARCH 7.
    THOMASVILLE, Ga., March 24 - March 7 end
    Shr 17 cts vs 23 cts
    Net 3,998,000 vs 5,317,000
    Sales 189.4 mln vs 159.6 mln
    Nine mths
    Shr 64 cts vs 68 cts
    Net 14.9 ln vs 15.9 mln
    Sales 540.9 mln vs 464.7 mln
    NOTE: Twelve and 36-week periods.


.I 14387
.C
earn
.W
FLOWERS INDUSTRIES <FLO> SEES LOWER YEAR NET.
    THOMASVILLE, Ga., March 24 - Flowers Industries Inc said it
expects lower earnings for the current year due to operating
losses incurred by recent acquisitions and possible
nonrecurring losses resulting from its restructuring efforts.
    For the year ended June 28, Flowers earned 29.5 mln dlrs.
Today it reported nine month earnings of 14.9 mln dlrs, down
from 15.9 mln dlrs a year before.
    Flowers said it expects fiscal 1988, however, to show the
best growth in profits in its history due to the growing
profitability of ongoing businesses, cost control efforts,
higher productvitiy and lower taxes.
    Flowers said losses suffered in its West Texas operations
and in five plants acquired at the start of the third quarter
from <CFS Staley Continental> and <Wolf Baking Co> severely
hurt results.
    It said the CFS and Wolf plants are expected to be
contributing to profit by the end of the fiscal year and it is
seeking to bring the West Texas operations to acceptable levels
of profitability by the end of the fourth quarter as well.


.I 14389
.C
earn
.W
TECHNITROL INC <TNL> 4TH QTR.
    PHILADELPHIA, March 24 -
    Shr 54 cts vs 47 cts
    Net 1.1 mln vs 941,000
    REvs 8.9 mln vs 10.3 mln
    Year
    Shr 1.65 dlrs vs 1.64 dlrs
    Net 3.3 mln vs 3.3 mln
    Revs 37.4 mln vs 39.0 mln
    


.I 14394
.C
alum
.W
ALCAN UPS ALUMINIUM INGOT AND BILLET PRICES.
    New York, March 24 - Alcan Aluminium Ltd. in Montreal said
it increased yesterday its prices for unalloyed ingot and
extrusion billet by two cents a lb, effective with shipments
beginning May 1.
    The new price for unalloyed ingot is 64.5 cents a lb while
the new price for extrusion billet is 72.5 cents a lb.
    "We feel very confident about raising our prices because we
see demand over supply as being sustainable for some time,"
said Ian Rugeroni, Alcan's president of metal sales and
recycling - U.S.A.
    Rugeroni said sheet and can bookings for Alcan aluminium
were up at a time when the company's total 1.1 mln tonne North
American smelter system had less than a week's supply.
    "We're short and we're buying," he said.
    Rugeroni added that Alcan expects the International Primary
Aluminum Institute to report a drop in total non-Socialist
stocks in February and March. He estimated supply in the latter
month will have fallen 100,000 to 150,000 tonnes, based in part
on current low inventories of aluminium in Japan and on the
London Metal Exchange.


.I 14398
.C
acq;gold;silver;lead;zinc;
.W
CORRECTED-HECLA <HL> TO BUY MINE STAKE FROM BP.
    COEUR D'ALENE, Idaho, March 24 - Hecla Minging Co said it
has agreed to purchase a 28 pct interest in the Greens Creek
Joint Venture from British Petroleum Co PLC's <BP> Amselco
Minerals Inc unit.
    The venture expects to bring into production a
gold-silver-lead-zinc ore body on Admiralty Island, Alaska,
containing about 3,500,000 short tons of ore assaying about
0.18 ounce of gold, 24.0 ounces of silver, 9.7 pct zinc and 3.9
pct lead per short ton, Hecla said.  It said there is
significant potential for the discovery of additional ore.
    Corrects last assay result to lead from zinc.


.I 14400
.C
earn
.W
GENERAL NUTRITION INC <GNC> 4TH QTR NET.
    PITTSBURGH, March 24 - Qtr ends Jan 31
    Shr profit eight cts vs loss 38 cts
    Net profit 2,466,000, vs loss 12,691,000
    Revs 111.1 mln vs 106.8 mln
    12 mths
    Shr profit 20 cts vs loss 47 cts
    Net profit 6,591,000 vs loss 15.5 mln
    Revs 342.6 mln vs 370.4 mln
    NOTE: includes provision for store closings of foreign
operations of 3,897,000 for 1986 qtr, and 1,403,000 for qtr
prior.
    includes provision for store closing costs and unproductive
inventory of 1,000,000 for 1986 qtr, and 25.1 mln for qtr
prior.


.I 14401
.C
acq
.W
CP AIR, PACIFIC WESTERN AIRLINES SET NEW NAME.
    VANCOUVER, B.C., March 24 - <Pacific Western Airlines Corp>
said the airline resulting from the previously announced merger
of its Pacific Western Airlines Ltd unit and Canadian Pacific
Air Lines Ltd would be named Canadian Airlines International
Ltd, effective April 26.
    Pacific Western said the two airlines' services and
schedules would also be integrated on April 26. It previously
appointed management for the new airline.
    The new airline, Canada's second largest, will have 81
planes flying to 89 destinations in 13 countries.
    Pacific Western recently acquired Canadian Pacific Airlines
for 300 mln dlrs from Canadian Pacific Ltd <CP>.


.I 14403
.C
gas;crude;
.W
DRAWDOWN SEEN IN U.S. DISTILLATE STOCKS.
    NEW YORK, March 24 - Tonight's American Petroleum Institute
oil inventory report is expected to show another drawdown in
distillate stocks of between two and 7.5 mln barrels for the
week ending March 20, oil analysts and traders said.
    They said they expect gasoline inventories to be depleted
by about one to four mln barrels.
    Analysts were divided on the crude stocks. Some saw stocks
unchanged to as much as three mln barrels higher. Others said
stocks could be down one to five mln barrels. Crude throughput
volumes are expected to be unchanged to slightly higher or
lower than the week ended March 13, traders said.
    The API recorded a 7.4 mln barrel stockdraw for U.S.
distillates in the week ended March 13. Analysts see another 
draw reflecting historic seasonal trends.
    For the week ended March 13, API reported gasoline stocks
down 2.9 mln barrels.
    Those expecting a draw of as much as four mln barrels said
they are looking for fairly high consumption rates as the
spring and summer driving season gets underway this year,
because retail prices are still low compared to recent years.
    U.S. crude oil stocks were reported down by 4.4 mln barrels
for the week ended March 13. Analysts are divided over the
outcome for last week because there is uncertainty about
whether throughput levels increased or decreased last week.
    Some see crude stock levels unchanged to three mln barrels
higher, while others think inventories could be as much as five
mln barrels below the previous week.
    The lower estimates are supported by the belief that crude
runs increased and imports fell.
    The API reported crude runs 154,000 b/d higher for the week
ended March 13. Analysts are calling it unchanged to slightly
up or down for the week ended March 20.
    Expectations for product stockdraws are already being
reflected in firmer prices, traders said. But if draws are at
the higher end of the estimated range, they added, the effect
will be bullish. Any stockbuild would be a negative factor,
they said.
    Crude runs normally increase in March, and any decrease in
runs would be friendly to the market, said Peter Beutel of
Elders Energy Futures Inc.


.I 14405
.C
money-fx;interest;stg;
.W
STERLING OUTLOOK CLOUDED BY TEST OF PARIS ACCORD.
    By Myra MacDonald, Reuters
    LONDON, March 24 - The move by foreign exchange markets to
test the strength of the Paris currency accord has thrown into
question the near-term outlook for sterling, until recently one
of the main beneficiaries of the agreement, analysts said.
    Since the six-nation accord last month, sterling has risen
sharply, adding almost five pct on its trade-weighted index.
    While the accord effectively stifled dollar/yen and
dollar/mark movements, the markets turned their attention to
sterling as foreign investors rushed to take advantage of
relatively high U.K. Interest rates.
    But analysts say the pound has been sidelined by the first
tentative test of the Paris accord seen yesterday.
    The market now looks set sooner or later to push the dollar
down further in a test of the willingness of central banks to
intervene. Analysts say if the banks do not intervene
effectively, the Paris accord could collapse.
    "On balance, sterling would be a net sufferer if G-6
collapses," Phillips and Drew analyst Stephen Lewis said.
    He said sterling would lose out as markets turned their
attention to capital movements whereas previously they had been
restricted to looking only at the interest yield on currencies.
    However, although most analysts and foreign exchange
dealers were forecasting a brief period of consolidation or
even retracement for sterling, none were expecting a very sharp
drop in the U.K. Currency.
    Sterling remained supported by optimism on the U.K.
Political and economic outlook, firmer oil prices and
relatively high interest rates, they said.
    Bullish sentiment on the U.K. Economic outlook has been
running especially high after last week's budget, seen as
popular both with the markets and with British voters.
    Sterling was also supported by signs of a weakening in the
West German and Japanese economies, where growth for 1987 is
trailing behind the three pct forecast for the U.K.
    Recent opinion polls showing Britain's ruling conservative
party ahead of opposition parties in popularity have also
supported the pound.
    In addition, sterling has so far shrugged off two
half-point cuts in U.K. Bank base lending rates in less than
two weeks. A further half-point cut, widely expected in the
next week or so, has already been largely discounted.
    U.K. Base rates, now running at 10 pct, are still
relatively high compared to other western countries, and
analysts said a further base rate cut to 9-1/2 pct was unlikely
to affect sterling.
    Sterling today appeared resilient to the dollar's decline,
dropping only slightly on a cross-rate basis.
    Worries about renewed turbulence in the foreign exchange
markets, however, were reflected in the U.K. Government bond
(gilt) market, where prices dropped by up to 5/16 point.
    Until now foreign investor interest in the gilt market has
been one of the major reasons behind the rise in sterling.
    Dealers said they expected the pound to hold quietly steady
for the next few days while the market awaits further
developments on the dollar and this Thursday's U.K. Current
account figures for February.
    Market forecasts are for a deficit of around 250 mln stg
after January's small surplus.


.I 14411
.C
earn
.W
PLENUM PUBLISHING CORP <PLEN> 4TH QTR NET.
    NEW YORK, March 24 -
    Shr 63 cts vs 45 cts
    Net 3,623,067 vs 2,607,977
    Gross income 10.1 mln vs 10.1 mln
    Year
    Shr 2.12 dlrs vs 1.74 dlrs
    Net 12.2 mln vs 10.0 mln
    Gross income 38.1 mln vs 36.8 mln
    NOTE: Share adjusted for five-for-two stock split effective
yesterday.
    Net includes gains on sale of securities pretax of
1,860,213 dlrs vs 392,975 dlrs in quarter 5,023,401 dlrs vs
3,223,008 dlrs in year.


.I 14413
.C
earn
.W
HONEYBEE INC <HBE> 4TH QTR NET.
    NEW YORK, March 24 -
    Oper shr 11 cts vs five cts
    Oper net 248,000 vs 122,000
    Sales 7,269,000 vs 5,481,000
    Year
    Oper shr 55 cts vs 14 cts
    Oper net 1,288,000 vs 333,000
    Sales 26.2 mln vs 17.6 mln
    NOTE: Net excludes discontinued operations nil vs gain
103,000 dlrs in quarter and losses 82,000 dlrs vs 50,000 dlrs
in year.
    1986 year net excludes 133,000 dlr provision for loss on
disposal of discontinued operations.


.I 14414
.C
earn
.W
SCIENTIFIC MEASUREMENT SYSTEMS INC <SCMS> NET.
    AUSTIN, Texas, March 24 - 2nd qtr Jan 31
    Shr loss three cts vs loss seven cts
    Net loss 352,000 vs loss 568,000
    Revs 636,000 vs 640,000
    Avg shrs 12.7 mln vs 8,377,000
    1st half
    Shr loss six cts vs loss 10 cts
    Net loss 594,000 vs loss 865,000
    Revs 1,245,000 vs 1,063,000
    Avg shrs 10.5 mln vs 8,333,000


.I 14416
.C
grain
.W
EC MEMBER STATES COOL ON CEREAL PLANS.
    BRUSSELS, March 24 - European Community (EC) member states
have generally given a cool initial reaction to proposals by
the European Commission for cereal price changes and related
measures in the coming season, EC diplomats said.
    They said that in meetings of the EC Special Committee on
Agriculture representatives of most member states had said the
changes, taken together, would have too harsh an impact on
farmers' incomes.
    Only Britain and the Netherlands had shown willingness to
accept the commission's overall package, they said.
    As well as cuts of over two pct in common prices for most
cereals, the commission proposes a limitation of intervention
to the February to March period and reduced monthly increments
in intervention prices.
    EC Farm Ministers will have a first discussion of the
proposals at a meeting beginning next Monday.


.I 14419
.C
earn
.W
PUBLIC SERVICE CO OF COLORADO <PSR> IN PAYOUT.
    DENVER, March 24 -
    Qtly div 50 cts vs 50 cts prior
    Pay May One
    Record April 10


.I 14420
.C
earn
.W
CORRECTED - MANHATTAN NATIONAL CORP <MLC> 4TH.
    NEW YORK, March 24 -
    Oper shr loss 20 cts vs loss 81 cts
    Oper net loss 1,042,000 vs loss 4,077,000
    Revs 38.5 mln vs 50.3 mln
    12 mths
    Oper shr loss six cts vs loss 43 cts
    Oper net loss 336,000 vs loss 2,176,000
    Revs 137.8 mln vs 209.1 mln
    NOTE: In item moved March 23, company corrects its error to
show loss for current 12 mths and qtr, not profit.


.I 14423
.C
earn;ship;
.W
STANDARD CHARTERED BOOSTED BAD-DEBT PROVISIONS.
    LONDON, March 24 - Standard Chartered Plc <STCH.L>, faced
with a recession in the key Singapore and Malaysian markets and
an ongoing depression in the shipping industry, boosted its
bad-debt provisions in 1986, chairman Lord Barber said.
    Barber said in a statement on the bank's 1986 results that
bad and doubtful debt provisions, both general and specific,
stood at 545.6 mln stg against 416.6 mln at end-1985.
    Bank figures showed the increase was almost exclusively in
the specific bad risk provision, which qualifies for U.K. Tax
breaks. New specific provisions rose by 111.5 mln stg while
71.2 mln stg were reallocated from the general risk provision.
    In all, a 184.2 mln stg charge was made against profits for
1986, compared with a 100.7 mln stg charge in 1985. Total
pre-tax profits fell to 254 mln after 268 mln in 1985.
    "The continuing serious recessionary conditions in Singapore
and Malaysia and the depressed condition of the shipping
industry made it necessary to provide heavily against bad and
doubtful debs arising from loans in the Asia Pacific region, on
top of the normal level of provisioning," Barber said.
    He said, "the decision was also taken to build up loan loss
reeserves by making a sizeable increase in the charges for
general provisions for commercial and cross border risks."
    Barber said due to bad-debt provisioning, the Asia Pacific
region made "a negligible contribution to pre-tax profits."
    He said the profits contribution from the U.K. Businesses
was "well maintained, although the reported result was affected
by cross border debt provisioning," while Californian subsidiary
Union Bank "showed continued growth."
    "Tropical Africa, Middle East and South Asia all turned in
excellent performances and the revival in Europe continued," he
said.
    Barber said the group, which succesfully fought off a
takeover bid by Lloyds Bank <LLOY.L> last year, strengthened
its capital resources during that year to just over three
billion stg, while total assets increased to 32.2 billion.
    Capital adequacy ratios remained strong, with the primary
capital ratio standing at 7.5 pct at end 1986, he said.


.I 14424
.C
coffee
.W
COLOMBIA COFFEE REVENUE SHARPLY DOWN IN JAN/FEB.
    BOGOTA, March 24 - Colombia's coffee export revenue dropped
97 mln dlrs to 233.6 mln dlrs for the first two months of the
year against 330.9 mln dlrs in the similar period of 1986,
central bank preliminary figures show.
    Experts attributed the fall to lower world market prices
following the failure to re-introduce international coffee
export quotas, but they said Colombia could compensate the drop
with higher exports in calendar 1987.
    Coffee export revenue for 1986 was 2.33 billion dlrs,
according to the bank.
    Jorge Cardenas, manager of the National Coffee Growers'
Federation, last week estimated the recent drop of 30 cents a
lb in coffee prices would mean a net loss revenue of 457 mln
dlrs for Colombia.
    But he stressed that Colombia, with stockpiles of 10 mln
(60-kg) bags, had the capacity to export more and would use a
recently-introduced more flexible marketing policy to do so.


.I 14426
.C
earn
.W
STE FRANCAISE DES PETROLES BP <PBPF.PA> 1986 YEAR.
    PARIS, March 24 -
    Net result breakeven (no profit or loss) vs breakeven
    Operating loss 836 mln francs vs 654 mln
    Net turnover 12.70 billion francs vs 24.34 billion
    Sales of petroleum products 9.7 mln tonnes vs 10.6 mln
    Note - Company said in a statement 1986 results were
affected by the sharp fall in crude oil prices. Net result
included an extraordinary recovery of 731 mln francs from
provisions for currency fluctuations and 361 mln francs in
depreciation of fixed assets. Company is a subsidiary of The
British Petroleum Co Plc <BP.L>.


.I 14427
.C
acq
.W
OLIVETTI DOES NOT EXCLUDE STAKE IN SGS-THOMSON.
    ROME, March 24 - Ing C Olivetti EC SpA <OLIV.M> does not
exclude the possibility of investing in a semiconductor venture
currently under discussion between Italy's <STET - Societa
Finanziaria Telefonica P.A.> and France's Thomson-CSF
<TCSF.PA>, an Olivetti spokesman said.
    He said that if Olivetti were approached by the two
partners involved and the financial conditions of any proposal
were considered interesting, the company did not exclude the
possibility of investing in the venture. However, Olivetti had
made no decision on any such investment and did not have at its
disposal information to evaluate such a move.
     Stet and Thomson said last Thursday they were negotiating
an accord involving their respective subsidiaries <SGS
Microelettronica SpA> and <Thomson Semiconducteurs> in the
civil semiconductor field.
    They said the accord, once concluded, would be put for
approval to the French and Italian authorities.
    The Olivetti spokesman was responding to a Reuters query
about Italian press reports today saying that Olivetti might
participate in the venture with a two pct stake.


.I 14429
.C
earn
.W
ENSERCH CORP <ENS> SETS QUARTERLY.
    DALLAS, March 24 -
    Qtly div 20 cts vs 20 cts prior
    Pay June One
    Record May 15


.I 14430
.C
acq
.W
NESTLE TO ACQUIRE NABISCO CANADA BUSINESSES.
    TORONTO, March 24 - Swiss-based <Nestle S.A.>'s Nestle
Enterprises Ltd unit said it signed a letter of intent to
acquire <Nabisco Brands Ltd>'s Club, Melrose, Dickson and Chase
and Sanborn businesses for undisclosed terms.
    Nestle said the final agreement, subject to required
approvals, would be signed shortly.
    The businesses involved in the deal provide products to
hotels, restaurants and other parts of the food and beverage
industry. Nabisco is 80 pct-owned by RJR Nabisco Inc <RJR>.


.I 14432
.C
trade
.W
******FED'S HELLER SAYS HE WANTS TO SEE STRONGER JAPANESE DEMAND FOR AMERICAN GOODS.
Blah blah blah.

.I 14433
.C
earn
.W
METROPOLITAN FINANCIAL CORP <MFC> VOTES PAYOUT.
    FARGO, N.D., March 24 -
    Qtly div 11 cts vs 11 cts prior qtr
    Pay 30 April
    Record 15 April


.I 14435
.C
crude
.W
GOODYEAR <GT> UNIT TO START UP PIPELINE.
    DALLAS, March 24 - Goodyear Tire and Rubber Co said the All
American Pipeline of its Celeron Corp subsidiary will start
line fill activities on March 30 as it begins operating.
    The company said about five mln barrels of oil will be
required to pack the completed segment of the line, which runs
1,225 miles from near Santa Barbara, Calif., to existing
pipeline connections in West Texas.  Construction has also
staqrted this week on a 43-mile, 16-inch diameter gathering
line to deliver 75,000 to 100,000 barrels a day of oil from the
San Joaquin Valley in California.  The 30-inch main underground
line can transport over 300,000 barrels daily.


.I 14436
.C
earn
.W
MICROSIZE INC <MSIZ> 2ND QTR ENDS FEB 28 NET.
    SALT LAKE CITY, March 24 -
    Shr profit one cent vs loss 2.6 cts
    Net profit 59,198 vs loss 132,702
    Revs 634,616 vs 485,730
    six mths
    Shr profit one cent vs loss four cts
    Net profit 49,669 vs loss 208,278
    Revs 1,056,452 vs 944,330


.I 14437
.C
acq
.W
<PAUL'S PLACE INC> CONTROL CHANGES.
    DENVER, March 24 - Paul's Place Inc said chairman,
president and treasurer Paul D. Lambert has sold 240 mln common
shares to other board members, advisory board members Alan H.
Marcove and Gerald M. Marcove and an unaffiliated purchaser it
did not name.
    Terms were not disclosed.
    The company said Alan Marvoce has been named to replace
Lambert as chairman and chief executive officer and Michael T.
Fuller has been named president.
    Fuller was formerly president of <Mr. Steak Inc>.


.I 14439
.C
acq
.W
******CYACQ AMENDS CYCLOPS OFFER CONDITIONS, SAYS CITICORP EXPANDS FINANCING .
Blah blah blah.

.I 14440
.C
acq
.W
GORDON JEWELRY <GOR> COMPLETES SALE OF UNIT.
    HOUSTON, March 24 - Gordon Jewelry Corp said it has
completed the previously-announced sale of the assets of its
catalog showroom stores to privately-held Carlisle Capital Corp
for an undisclosed amount of cash and notes in excess of book
value.


.I 14443
.C
money-fx;trade;
.W
FED'S HELLER URGES JAPANESE TO BUY U.S. GOODS.
    WASHINGTON, March 24 - A member of the Federal Reserve
Board, Robert Heller, said he wanted to see stronger Japanese
demand for American goods.
    "What I was advocating here was more Japanese purchases of
American goods," Heller said in response to a question about the
dollar's weakness in currency markets.
    He told a Heritage Foundation forum, "I'd be very happy to
see that."
    In his formal remarks, Heller said he supported the idea of
using commodity prices as an indicator for monetary policy.
    Asked if he would raise the issue at the next Federal Open
Market Committee meeting, he said, "Even at previous meetings
commodity prices were raised."
    He added, "I would not expect future meetings to be
different from past meetings in that respect."


.I 14446
.C
earn
.W
TAJON RANCH CO <TRC> 4TH QTR NET.
    LEBEC, Calif. March 24 -
    Shr five cts vs nine cts
    Net 560,000 vs 1,247,000
    Revs 7,597,000 vs 4,619,000
    Year
    Shr ten cts vs 17 cts
    Net 1,225,000 vs 2,161,000
    Revs 26.5 mln vs 23.3 mln


.I 14449
.C
earn
.W
CENTERIOR ENERGY CORP <CX> SETS QUARTERLY.
    CLEVELAND, March 24 -
    Qtly div 64 cts vs 64 cts prior
    Pay May 15
    Record April 16


.I 14451
.C
earn
.W
SUFFIELD FINANCIAL CORP <SFCP> RAISES QUARTERLY.
    SUFFIELD, Conn., March 24 -
    Qtly div five cts vs three cts prior
    Pay April 10
    Record March 31


.I 14453
.C
tin
.W
TIN PACT EXTENSION LIKELY - ITC DELEGATES.
    LONDON, March 24 - An extension of the sixth International
Tin Agreement, ITA, for one or two years beyond June 30 is
increasingly likely, International Tin Council, ITC, delegates
said following a special council session today.
    A formal decision will be taken at the quarterly council
session on April 8-9 when decisions are needed on the budget
and activities for the year beginning July one, they stated.
    Delegates said most countries now favour a continued legal
ITC presence to answer the still unresolved legal disputes over
the outstanding debts of its buffer stock with court hearings
likely to continue well after the June 30 expiry of the pact.
    The ITC was informally told of the appeal made yesterday by
Amalgamated Metal Trading Ltd, AMT, against the January court
ruling against it in the legal bid it led on behalf of ITC
creditor brokers to have the ITC wound up.
    In January the judge ruled that the U.K. Court had no
jurisdiction to wind up the tin council, the ITC was not an
association within the meaning of the U.K. Companies act, and
the winding-up petition was not a proceeding in respect in
respect of an arbitration award.
    AMT is appealing on all points and has said it is important
for the court to accept that a winding-up petition is a move to
enforce an arbitration ruling.


.I 14455
.C
earn
.W
SIGMA RESEARCH ONC <SIGR> 2ND QTR DEC 31 LOSS.
    SEATTLE, Wash., March 24 -
    Shr loss 27 cts vs profit one ct
    Net loss 532,376 vs profit 15,584
    Revs 1,899,719 vs 2,432,256
    Six mths
    Shr loss 78 cts vs profit two cts
    Net loss 1,521,002 vs profit 30,145
    Revs 3,235,907 vs 5,276,119
    Note: year ago net includes gain from tax carryforwards of
5,000 dlrs in quarter and 9,000 dlrs in year.
   


.I 14460
.C
grain;corn;
.W
HEAVY SIGNUP SEEN IN 1987 CORN PROGRAM - USDA.
    WASHINGTON, March 24 - With less than a week remaining to
enroll in the 1987 feedgrains program, Agriculture Department
officials said that final signup will probably exceed last
year's level of 85 pct.
    Enrollment in USDA's basic acreage reduction program will
likely total close to 90 pct, Agricultural Stabilization and
Conservation Service, ASCS, officials said, with 50 to 70 pct
of the enrolling farmers also expected to sign up for the paid
land diversion program.
    The signup period of the 1987 feedgrains program officially
ends at the close of the business day on March 30.
    USDA will release its official signup report around April
15, an official said.
    USDA personnel in the corn belt states of Iowa, Illinois,
and Indiana have been reporting heavy signup activity, an ASCS
official told Reuters.
    A surge of acitivity is expected during this final week of
signup, the official said.
    "A lot of farmers have been dragging their feet because
they were anticipating some changes in the program, but that
doesn't look very likely now," he said.
    To enroll in the 1987 feedgrains program, farmers have to
set aside 20 pct of the program acreage base, and have the
option to idle an additional 15 pct under a paid land diversion
program.


.I 14462
.C
grain
.W
ILLINOIS CO-OP FUTURES DISSOLUTION VOTE SET.
    By Keith Leighty
    CHICAGO, March 24 - The shareholders of Illinois
Cooperative Futures Co., the futures trading arm of many
Midwest farm cooperatives for more than 25 years, will vote
Wednesday on its possible dissolution.
    The directors of the company called a special meeting and
recommended its dissolution last month, citing falling volume
and increasing costs.
    Sources close to the organization told Reuters the pullout
of Growmark, Inc., which holds more than 70 pct of the capital
stock, led to the call for dissolution.
    The possible demise of the cooperative has set clearing
houses scrambling for the trading business of the 85 regional
and local cooperatives that comprise its membership.
    Ironically, it was Growmark, at that time a regional farm
cooperative with major river terminal elevators, that founded
Illinois Cooperative Futures on December 1, 1960.
    But Growmark became affiliated last year with Archer
Daniels Midland of Decatur, Ill., and markets its grain through
a joint subsidiary of the two companies, ADM/Growmark.
    With that relationship, Growmark no longer needs to trade
futures through the cooperative, said Tom Mulligan, president
of the co-op.
    Membership in the company, which Mulligan termed a
cooperative of cooperatives, has declined from 99 in 1982. A
notable loss was AgriIndustries of Iowa, which became
affiliated with Cargill, Inc.
    Illinois Co-op's other members include such regional
cooperatives as Indiana Grain, based in Indianapolis, Goldkist,
of Atlanta, Ga., Midstates in Toledo, Ohio, Farmland Industries
in Kansas City, Mo., Farmers Commodities, Des Moines, and
Harvest States in Minneapolis.
    Some observors said the demise of Illinois Cooperative
Futures Co. is a serious blow to the cooperative system.
    Instead of banding together, the individual cooperatives
are forced to go their own ways, said the floor manager of one
cash house at the Chicago Board of Trade.
    Such a move would destroy the cohesiveness that gives farm
cooperatives an advantage in the market at a time that a few
major commercial companies are growing dominant, he said.
    Don Hanes, vice president for communications with the
National Council of Farm Cooperatives, said 5,600 cooperatives
exist today, down from 6,700 five years ago.
    "The period we've gone through in the past five years has
been quite a crunch," he said. "There's been a lot of
consolidation in the marketing co-ops."
    One problem, he said, is the co-ops sell the grain to the
major commercials for export, rather than exporting it
themselves, losing potential profits.
    But exporting grain requires heavy investments, and the
multi-million-dollar loss posted six years ago by Farmers
Export Co., a co-op set up to export grains, served "to make
folks gun-shy," Hanes said.
    Mulligan said he believes the dissolution, if it is
approved, is a result of change in the futures industry rather
than a change in U.S. agricultural economics.
    A grain dealer at one member co-op said the futures arm
"was a convenience, something that saved us a little bit of
money. (Its dissolution) will force us to change our way of
doing business."
    "We're sorry to see the co-op go by the wayside," he said.
"But there are lot of people out there to do business with.
There are plenty of capable firms."
    Steven W. Cavanaugh, vice president for grain marketing
with Indiana Grain, said he would prefer to trade futures
through a Chicago-based cooperative.
    "In terms of clearing our business as a unit as opposed to
individuals, there would be economic savings," he said but
added, "The times change and with changing times, come
different opinions of what businesses ought to be around."
    Cavanaugh said the possible demise of the futures arm had
nothing to do with its profitability. "I would guarantee you
that this company is not in trouble. It is a sound, healthy
organization."
    In the year ended February 28, 1986, the Illinois
Cooperative reported income of 10.2 mln dlrs and members'
equity, or net worth, of 8.3 mln dlrs. The annual report for
the most recent year has not been filed.
    Under the cooperative system, income from operations is
returned as "patronage refunds" to the members.
    Income and refunds in the past five years have been
declining. In the year ended February 28, 1982, the co-op
reported income of 17.4 mln dlrs and patronage refunds of 17.0
mln dlrs. Patronage refunds in the year ended February 28,
1986, totalled 9.5 mln dlrs.
    "You're dealing with substantially lower volume," Mulligan
said. "Lower volume translates into higher costs."
    According to the company's 1986 annual report, Growmark
owns 90 pct of the preferred shares and four pct of the common
shares of Illinois Cooperative Futures Co.
    Mulligan declined to speculate on how much of the capital
Growmark is entitled to. He said he could not determine the
figure unless the shareholders decide in favor of dissolution.
Equity is distributed according to each member's trading volume
and, as a result, changes from year to year.
    However, Mulligan said the company could continue to meet
minimum capital requirements to trade futures even if Growmark
pulled out.


.I 14463
.C
acq
.W
CONRAC <CAX> SOARS FOLLOWING MARK IV <IV> BID.
    By Cal Mankowski, Reutersd
    NEW YORK, March 24 - Heavy buying by speculators boosted
Conrac Corp 7-7/8 to 29, higher than a 25-dlr-per-share cash
tender offer announced by Mark IV Industries Inc <IV>.
    "It's a case of ChemLawn euphoria," said one arbitrageur,
referring to a recent hostile tender that began at 27 dlrs per
share and ended when ChemLawn Corp <CHEM> found a white knight
willing to bid 36.50 dlrs.
    For Conrac, the arbitrageur said, 28 dlrs per share seemed
like an "appropriate price." Another said "it's too early to
project the outcome."
    "The market is speaking for itself and saying the 25 dlr
offer is inadequate," the second arbitrageur said. But he added
it was hard to make a case for Conrac being worth much more
than the 29 dlrs where the shares traded today.
    He noted the stock recently sold in the high teens and
there could be a downward risk of 10 dlrs or more if Conrac is
able to thwart Mark IV.
    Conrac urged shareholders to take no action while its board
studies the offer and confers with advisers. Conrac said it
would make a recommendation by April 17.
    A third arbitrageur noted Mark IV had been involved in
several takeovers previously and has proven itself to be a
determined bidder. "They're not beginners," he said.
    Another said Conrac might have trouble if it tried to find
another buyer. "It's a hodge-podge of non-related businesses,"
he said. "There is only a small universe of people who would
want to own the company as it's presently structured."
    Conrac is involved in video displays, computer software,
aircraft instruments, telephone answering machines, welding
equipment and other products.
    "I'm telling retail clients to sell and leave the rest for
those who can take the risk," said Rudolph Hokanson, analyst at
Milwaukee Co.
    He called the 25-dlr offer by Mark IV "fair value but on
the low side." "I don't think management was looking for a
buyer in any way before this offer," he said.
    Hokanson said Conrac has conservative finances and has
developed a reputation for quality products that serve niche
markets. He said management has done a good job of turning
around the telephone answering machine business.


.I 14464
.C
acq
.W
CONRAC <CAX> URGES NO ACTION ON BID.
    STAMFORD, Conn., March 24 - Conrac Corp said it is asking
shareholders to take no action on the 25-dlr-per-share tender
offer for all its shares launched this morning by Mark IV
Industries Inc <IV>.
    The company said its board will study the offer with
financial and legal advisors and make a recommendation to
shareholders by April 17.


.I 14465
.C
acq
.W
LASER PHOTONICS <LAZR> SELLS COMMON SHARES.
    ORLANDO, Fla., March 24 - Laser Photonics Inc said it sold
615,385 shares of its common stock to investors for one mln
dlrs under a previously-announced agreement.
    In connection with the investment, the company said it will
restructure its board. There will be eight members, three of
whom were designated by the new investors, the company said.
The group of investors include affiliates of <Radix
Organization Inc>, the company said.
    Richard Gluch Jr resigned from the board. Joining the board
were Leonard Lichter, Pierre Schoenheimer and Roger Kirk, the
investors' designates, the company added.
    Other members of the board are chairman Don Friedkin,
president and chief executive officer Mark Fukuhara, and Jay
Watnick, Ira Goldstein, Thurman Sasser and Michael Clinger.


.I 14466
.C
earn
.W
CROWLEY, MILNER AND CO<COM> 4TH QTR JAN 31 NET.
    DETROIT, March 24 -
    Shr 4.11 dlrs vs 3.51 dlrs
    Net 2,091,000 vs 1,785,000
    Sales 38.8 mln vs 34.3 mln
    Year
    Shr 3.42 dlrs vs 3.57 dlrs
    Net 1,740,000 vs 1,815,000
    Sales 113.0 mln vs 104.1 mln
    Qtly div 25 cts vs 25 cts previously
    Pay April 30
    Record April 15


.I 14467
.C
gold
.W
<D'OR VAL MINES LTD> FINDS HIGH-GRADE ORDER.
    VANCOUVER, March 24 - D'Or Val Mines Ltd said a recent
drill hole from the surfrace has intersected high-grade ore in
a downdip extension of the Discovery Vein in its D'Or Val Mine
in northern Quebec.
    The company said 42.3 feet of the hole graded 0.92 ounce
per short ton of gold, including a 17.5 foot section grading
2.17 ounces.
    It said the zone is just below the projection of the
seventh level of the mine about 1,450 feet below the surface
and 820 feet west of the shaft.
    D'Or Val said this find and other recent ones will make
substantial contributions to the mine's ore reserves and grade.


.I 14469
.C
ship;coffee;
.W
BRAZILIAN SEAMEN SAY 14,000 NOW BACK AT WORK.
    SAO PAULO, March 24 - About 14,000 of Brazil's 40,000
seamen are now back at work after pay accords with 21 shipping
companies but the rest are still on strike, a spokesman at
strike headquarters said today.
    The seamen began a national stoppage on February 27.
    The spokesman, talking by telephone from Rio de Janeiro,
said 126 ships were strike-bound.
    He added that because of resignations by many seamen there
were scarcely any crews left on 38 of these ships.
    The seamen have settled in general for pay rises of 120 pct
with the 21 companies. Talks with the shipowners' association
Syndarma have been deadlocked over overtime.
    While exports have been delayed by the strike, exporters
say the problems have been manageable.
    "It hasn't been critical by any means," said a coffee trader
in Santos, who noted that coffee was still moving on foreign
ships.
    Economic analysts added, however, that any delay to exports
served to aggravate Brazil's balance of payments crisis, which
last month prompted the government to suspend interest payments
on 68 billion dlrs of commercial debt.


.I 14470
.C
interest
.W
FED BUYS 500 MLN DLRS OF BILLS FOR CUSTOMER.
    NEW YORK, March 24 - The Federal Reserve purchased about
500 mln dlrs of U.S. Treasury bills for a customer, a
spokeswoman said.
    She said that the Fed bought bills maturing in June and
July, and on August 27 and September 10 for regular delivery
tomorrow.
    Dealers said that Federal funds were trading at 6-1/8 pct
when the Fed announced the operation.


.I 14473
.C
earn
.W
KODAK <EK> TO CUT POLYESTER FIBER OPERATIONS.
    ROCHESTER, N.Y., March 24 - Eastman Kodak Co said it will
reduce capacity and employment levels in two polyester fiber
operations of its Eastman Chemicals division.
    A company spokesman said the company will take "some
writeoff" in connection with the action in the first quarter
and there will probably be a further "carryover" writeoff in
the second quarter.  The writeoffs will cover the costs of
plants and equipment involved, as well as expenses connected
with the staff cuts.
    Kodak said the division will discontinue production of
polyester partially-oriented filament yarn, or POY, at its
Carolina Eastman Co plant in Columbia, S.C., and will idle 100
mln pounds of older polyester staple fiber production capacity,
mostly in Columbia.
    The company said about 350 jobs will be affected in
Columbia, most of which are now performed by contract workers,
and about 225 jobs at its Tennessee Eastman Co plant in
Kingsport, Tenn.
    Kodak said part of the staff reduction will be achieved
through an enhanced voluntary separation and retirement plan
for employees of Carolina Eastman, Eastman Chemical Products
Inc and other Kodak units in Kingsport, except Holsten Defense
Corp. Most of the workforce reduction is expected to be
completed by April 30.
    Kodak said depressed prices and poor financial performance
have led to the decision. It said about 50 mln pounds of POY
production will be shut down as a result of its exit from the
business. All Kodak POY production has been at Carolina Eastman
since last year.
    The company said annual capacity for production of Kodel
polyester staple fiber will be reduced to 400 mln pounds from
500 mln due to lesser demand.
    It said it will proceed with a previous decision to phase
in a new 100 mln pound staple fiber plant at Carolina Eastman.
    Carolina Eastman employs about 1,350 and the Kingsport
units affected about 10,800.
    The company spokesman later said the charges will be
insignificant and will have no impact on earnings estimates.


.I 14476
.C
earn
.W
PENN TRAFFIC CO <PNF> 4TH QTR JAN 31 NET.
    JOHNSTOWN, Penn., March 24 -
    Shr 33 cts vs 46 cts
    Net 1,350,000 vs 1,886,000
    Revs 150.1 mln vs 127.9 mln
    Year
    Shr 1.76 dlr vs 1.59 dlr
    Net 7,300,000 vs 6,567,000
    Revs 548 mln vs 510.5 mln
    NOTE: First three quarters of 1986 have been restated to
reflect adoption in 4th qtr of new pension accounting procedure
which increased net income in first three qtrs 204,000 dlrs or
five cts per share. Procedure increased fourth qtr income
73,000 dlrs or two cts per share.


.I 14477
.C
acq
.W
CYACQ CUTS CONDITIONS ON CYCLOPS <CYL> BID.
    NEW YORK, March 23 - Cyacq Corp, an investor group bidding
for Cyclops Corp, said it amended its outstanding 92.50 dlrs a
share tender offer for Cyclops to eliminate two conditions and
modify a third one.
    The group, which includes Audio/Video Affiliates Inc and a
unit of Citicorp <CCI>, said it also obtained additional
financing commitments, including an increased commitment from
Citicorp Capital Investors Ltd.
    The conditions that were eliminated are Cyacq's request for
non-public information about Cyclops that was previously
provided to Dixons Group PLC and Cyacq's being satisified that
the information provides an adequate basis for Cyclop's
published financial projections.
    Cyclops has agreed to be acquired Dixons Group, which has a
90.25 dlrs a share tender offer for Cyclops outstanding. Dixons
said earlier it would allow the offer to expire tonight.
    The condition that was modified, which required Cyacq to be
satisfied that break up fees or other obligations to Dixons
were rescinded or ineffective, now says Cyclops shall not have
paid any such fees or expenses to Dixons prior to the
consummation of Cyacq's offer.
    Cyacq's amended offer expires midnight New York time on
April three, 1987, unless extended.
    Manufacturers Hanover Trust Co and CIT Group/Business
Credit Inc increased its tender offer commitment to 197 mln
dlrs from 166 mln dlrs and its merger commitment to 275 mln
dlrs from 250 mln dlrs.
    Additionally, the Citicorp unit and Audio/Video have
increased their commitments to Cyacq to 185 mln dlrs. Of the
new total, 150 mln dlrs has been committed by Citicorp.
    Cyacq said it estimates that it needs 407.5 mln dlrs to buy
all Cyclops shares that may be tendered and pay related fees
and expenses.
    It said it is seeking to arrange the balance of about 25.5
mln dlrs necessary to complete the offer.
    All previously announced conditions regarding the lending
group led by Manufacturers Hanover remain in effect, except
that the loans are subject to the concurrent receipt by Cyacq
of equity contributions and other financing of not less than
210.5 mln dlrs for the tender offer facility and 213.5 mln dlrs
for the merger facility.
    Cyacq also said the Citicorp unit had received no
indications of interest in an alternative offer it had made
from Dixons, Cyclops or Alleghany Corp <Y>, which has agreed to
acquire Cyclops' industrial group from Dixons.
    Under the alternative offer, the Citicorp unit, with
Cyacq's approval, proposed to acquire the industrial group from
Dixons.


.I 14480
.C
earn;crude;
.W
CALUMET INDUSTRIES <CALI> SEES 2ND QTR LOSS.
    CHICAGO, March 24 - Calumet Industries Inc said it expects
to report a loss from operations for its second quarter ending
March 31, despite a strong unit sales increase.
    In the same year-ago period the company reported net income
of 366,953 dlrs, or 18 cts a share.
    Chairman S. Mark Salvino said the expected loss is
primarily due to depressed product prices not recovering the
increasing cost of crude oil.
    Salvino also said steadier crude prices and the reduced
rate of refinery production should increase product prices and
lead to a return to more normal profit margins.
    He reported that the 23 mln dlr HydroCal II system under
construction at the company's refinery in Princeton, La., is on
schedule and production will begin early in fiscal 1988.


.I 14482
.C
cocoa
.W
COCOA BUFFER STOCK ACCORD CLOSER, DELEGATES SAY.
    By Lisa Vaughan, Reuters
    LONDON, March 24 - The International Cocoa Organization
(ICCO) moved closer to an agreement on buffer stock rules, with
many delegates saying they expect to reach an accord by Friday.
    "Everyone is convinced the buffer stock rules should be in
place by Friday so the buffer stock can be put into operation
Monday," a consumer delegate said. "The atmosphere is excellent."
    Other delegates said the buffer stock might not be
operational by Monday but could be in place by around April 1,
if the rules are agreed by Friday.
    A detailed package on how the buffer stock manager will buy
and sell cocoa was presented to a buffer stock working group
this afternoon -- a big step toward a "very interesting stage of
negotiations," delegates said.
    The package, based on negotiating principles informally
agreed by delegates, has been forged bit by bit during
fortnight-long meetings by ICCO Executive Director Kobena
Erbynn and a small group of other delegates.
    Producers, the European Community (EC) and consumers are
scheduled to consider the paper separately and then jointly
tomorrow.
    Under the proposal, the buffer stock manager would buy
cocoa from origins or the second-hand market on an offer
system. He would alert the market via news agencies as to when
he wanted to buy cocoa and include shipment details and tonnage
desired, delegates said.
    The manager would buy cocoa on a competitive basis, rather
than choosing the cheapest cocoa as before, giving preference
to ICCO member-country exporters. Standard price differentials
would be fixed for each origin, similar to golf handicaps, to
determine the relative competitiveness of offers of various
cocoas from different origins, they said.
    The differentials could be reviewed at the request of a
member country or recommendation of the buffer stock manager,
the delegates said. Revision would be decided by a majority
vote of the ICCO council.
    Buffer stock purchases from non-ICCO member countries would
not be allowed to exceed 10 pct of the total buffer stock, they
said.
    The purchases would be limited to 5,000 tonnes of cocoa per
day and 20,000 tonnes per week, and could be bought in nearby,
intermediate and forward positions, they added.
    One of the underlying ideas of the rules package is
"transparency," meaning virtually all the buffer stock manager's
market activities will be public and he will have as little
discretion as possible, delegates said.
    After the tin market collapse in 1985, when the
International Tin Council buffer stock ran out of funds, cocoa
delegates are anxious to install safeguards in the cocoa market
mechanism, they said.
     Earnest debate on the buffer stock proposal is expected to
begin late tomorrow, as delegations feel the pressure of the
approaching Friday deadline, when the ICCO meeting is due to
adjourn, delegates said.
    The ICCO failed to agree buffer stock rules in January when
the new International Cocoa Agreement came into force. The
existing buffer stock of 100,000 tonnes of cocoa was frozen in
place with its bank balance of 250 mln dlrs -- both untouchable
until rules are agreed.
     Though the current semi-annual council meeting is not the
last chance for delegates to cement buffer stock rules,
producers are keen to get the wheels of the market-stabilizing
mechanism turning to stem the decline in world prices,
delegates said.


.I 14483
.C
acq
.W
FINANCIAL CORP <FIN> NOT HOLDING BUYOUT TALKS.
    IRVINE, Calif., March 24 - Financial Corp of America said
it is not holding discussions with anyone regarding a buyout of
the company.
    But a spokeswoman pointed out that Financial Corp has said
publicly for nearly two years that in the company's view a
merger would be one method of increasing the company's capital.
    "If an opportunity arises for us to strengthen our capital
position quickly we would be very open to it," the spokeswoman
said.
    Financial Corp would need over one billion dlrs to bring
its regulatory net worth up to Federal Savings and Loan
Insurance Corp requirements, the spokeswoman said.
    In addition, she said that the Federal Home Loan Bank
Board, in a letter dated January 26, 1987, stated that through
March 31, 1988 it will continue to support the company's
efforts to restructure its balance sheet, maintain profitable
operations and augment net worth.


.I 14485
.C
earn;gas;crude;
.W
PDVSA INCOME ON OIL SALES FELL 45 PCT IN 1986.
     CARACAS, March 24 - The state oil company Petroeleos de
Venezuela ended 1986 with a decrease of 45 pct in income from
oil sales even though it surpassed its own export goal by
almost 100,000 barrels a day, Minister of Energy and Mines
Arturo Hernandez Grisanti said.
    Speaking to a news conference following the PDVSA annual
assembly, Hernandez said PDVSA's income from oil sales had
dropped to 7.2 billion dlrs in 1986, down 45 pct from last
year's 13.3 billion.
    Fiscal revenue from oil sales, which was estimated at 66
billion bolivares for 1986, totalled 43.5 billion, a drop of 34
pct which Hernandez said "had a very serious impact on
Venezuela."
    PDVSA's export volume averaged 1.508 mln barrels a day, of
which 658,000 bpd were crude oil and 850,000 bpd refined
products.
    The figure surpassed PDVSA's stated goal of 1.410 mln bpd
and the 1985 export volume of 1.371 mln bpd. But it was not
enough to cover the losses from a drop in the average price
from 25.88 dlrs per barrel in 1985 to 13.90 dlrs last year.
    The 13.90 per barrel price for 1986 was 1.01 dlrs higher
than the figure originally announced by the Central Bank.
Hernandez said the increase had come from a new accounting
system which included the results of PDVSA's overseas refining
and marketing operations.
    Consumption in Venezuela's internal market increased from
323,000 bpd in 1985 to 342,000 bpd last year. However,
Hernandez stressed that the government had managed to keep
gasoline sales almost constant at 164,000 bpd.
    Exploration by PDVSA led to an increase of 675 mln barrels
in reserves of light and medium crudes, shifting the balance of
Venezuela's reserves away from heavy crude oil. The country's
production capacity at year-end 1986 was 2.562 mln bpd, of
which 1.420 mln are light and medium crudes, Hernandez said.
     Venezuela's total proven reserves as of December 31, 1986
were 55.521 billion barrels, the fourth largest amount in the
world, Hernandez said.


.I 14486
.C
earn
.W
AMERICAN NETWORK INC <ANWI> DEC 31 YEAR NET.
    PORTLAND, Ore., March 24 -
    Shr profit 16 cts vs loss 1.40 dlrs
    Net profit 3,000,000 vs loss 6,570,000
    Revs 91.7 mln vs 66.9 mln
    Avg shrs 19,078,072 vs 4,708,896
    Note: Current year net includes nine mln dlr net gain from
settlement of litigation.


.I 14489
.C
earn
.W
SIGNET BANKING CORP REGULAR DIVIDEND.
    RICHMOND, Va, March 24 -
    Qtly div 31 cts vs 31 cts prior
    Payable APril 22
    Record April three


.I 14490
.C
earn
.W
MOTT'S SUPER MARKETS INC <MSM> 4TH QTR JAN 3.
    EAST HARTFORD, Conn, March 24 -
    Shr loss 15 cts vs loss 1.12 dlrs
    Net loss 414,331 vs loss 3.1 mln
    Revs 73.8 mln vs 69.1 mln
    Year
    Shr loss 99 cts vs loss 1.69 dlr
    Net loss 2.7 mln vs loss 4.7 mln
    Revs 276.9 mln vs 290.1 mnln


.I 14491
.C
earn
.W
ALEXANDER'S <ALX> 2ND QTR FEB 7.
    NEW YORK, March 24 -     Shr 57 cts vs 72 cts
    Net 2.7 mln vs 3.3 mln
    Six months
    Shr 45 cts vs 84 cts
    Net 2.1 mln vs 3.8 mln
    NOTE:1987 six months includes 790,000 dlr charge. 1986 six
months includes 679,000 net gain.


.I 14492
.C
earn;crude;pet-chem;
.W
IMPERIAL OIL <IMO.A> TO FOCUS ON HIGHER PROFIT.
    TORONTO, March 24 - Imperial Oil Ltd, 70 pct owned by Exxon
Corp <XON>, will focus on maintaining its financial strength
and improving near-term earnings performance through operating
expense reductions and selective capital spending, the company
said in the annual report.
    Imperial Oil said it expects to spend about 750 mln dlrs on
capital and exploration expenditures in 1987, compared to 648
mln dlrs in 1986 and 1.16 billion dlrs in 1985.
    Imperial previously reported 1986 operating net profit fell
to 440 mln dlrs or 2.69 dlrs share from 694 mln dlrs or 4.27
dlrs share in the prior year.
    Imperial Oil said the attention to earnings results from
the desire to pursue longer term growth opportunities should
the investment climate improve and the belief that low or
volatile crude oil prices could continue during the next
several years.
    The company also said actions initiated during 1986 to
restructure and improve efficiency should continue to show
benefits in 1987.
    During 1986, the company cut operating, administrative and
marketing expenses by 91 mln dlrs and reduced the number of
workers by 16 pct to 12,500.
    Imperial chairman Arden Haynes said in the annual report
that it is too early to determine whether the recent upward
movement in international oil prices will be sustained.
    "It is still a time for prudence and caution, and the
company's actions will continue to be based on the fundamentals
of market supply and demand," he said.
    Haynes said prospects for the company's petroleum products
division are more promising than before, but are still
uncertain. Imperial's 1986 petroleum earnings rose to 174 mln
dlrs from 102 mln dlrs in 1985.
    Haynes said more satisfactory product margins on its
petroleum products could result if demand recovers as it has in
the United States.
    The company's chemicals business outlook is mixed, Haynes
said. Prospects for growth in petrochemical sales is good as
long as economic growth continues, but future large grain
surpluses could dampen fertilizer demand and maintain pressure
on prices.
    Imperial's chemical business earned 17 mln dlrs in 1986,
compared to three mln dlrs in 1985.


.I 14493
.C
earn
.W
NORTHEAST UTILITIES <NU> YEAR.
   HARTFORD, Conn, March 24 -
    Shr 2.78 dlrs vs 2.55 dlr
    NEt 302.0 mln vs 271.6 mln
    REvs 2.0 billion vs 2.1 billion


.I 14495
.C
earn;acq;
.W
CPC <CPC> TO SELL EUROPEAN BUSINESS.
    NEW YORK, March 24 - CPC International Inc said it reached
an agreement in principle to sell its European corn wet milling
business to Agricola Finanziaria SpA, a member of the Ferruzzi
Group, for a price in excess of 600 mln dlrs.
    The transaction is expected to be completed by September
30.
    CPC said it expects no material gain or loss this year from
the transaction. But the effect of the deal on 1987 earnings
can be evaluated in full only when the definitive pacts are
completed, it said.
    The long-term effect of the transaction on CPC's earnings
should be positive, it added, as it will allow capital
expenditures to be cut back and will reduce corporate and
divisional overheads as well as operating expenses in the
European business.
    The sale is an important part of a restructuring announced
in November, CPC said.
    Proceeds of the sale will be used to reduce debt incurred
in the purchase of the Arnold Foods and Old London specialty
baking businesses and the stock repurchase program that was 
part of the restructuring.
    As of December 31, CPC had bought about 15 mln of its
common shares, adjusted for a 2-for-1 split in January, for a
total cost of 621.8 mln dlrs, according to its 1986 annual
report.
    In December, CPC acquired Arnold Foods and Old London for a
total of about 170 mln dlrs.
    CPC had previously said it wanted to sell the European corn
wet milling business and use the proceeds to help reduce debt,
including that incurred under the share buyback.
    In total, CPC has bought back about 16 mln shares of common
stock, adjusted for the split, it said today. In November it
authorized a buyback of 20 mln shares, adjusted for the split.
    The buyback and the restructuring were triggered in
November, after companies controlled by Ronald Perelman,
chairman of Revlon Group Inc <REV>, acquired about 7.6 pct of
CPC's then outstanding stock.
    In 1986, the European corn wet milling business had sales
of 914.1 mln dlrs, operating income before overheads of 68.8
mln dlrs and associated headquarters overhead costs of 19.7 mln
dlrs, according to CPC's 1986 annual report.
    The businesses' assets were 645.7 mln dlrs in 1986, the
report said.


.I 14496
.C
acq
.W
MOBEX COMPLETES GRANT INDUSTRIES <GTX> TENDER.
    LOS ANGELES, March 24 - Mobex Corp, a private building
product concern, said as of late yesterday it had accepted
about 2.3 mln shares or 98 pct of Grant Industries Inc under a
tender offer.
    The 7.75 dlrs a share cash offer expired at 2000 EST
yesterday. Mobex said its Mobex Acquisition Corp unit accepted
2,316,940 shares of Grant common, or about 98 pct of the
2,369,799 shares presently outstanding, at the tender price.
 


.I 14497
.C
earn
.W
LEUCADIA NATIONAL CORP <LUK> 4TH QTR NET.
    NEW YORK, March 24 -
    Shr 3.28 dlrs vs 22 cts
    Shr diluted 2.99 dlrs vs 22 cts
    Net 46.0 mln vs 3,328,000
    Avg shrs 14.0 mln vs 15.2 mln
    Year
    Shr 5.41 dlrs vs 1.56 dlrs
    Shr diluted 4.94 dlrs vs 1.50 dlrs
    Net 78.2 mln vs 25.9 mln
    Avg shrs 14.5 mln vs 15.1 mln
    NOTE: earnings per share reflect the two-for-one split
effective January 6, 1987.
    per share amounts are calculated after preferred stock
dividends.
    Loss continuing operations for the qtr 1986, includes gains
of sale of investments in Enron Corp of 14 mln dlrs, and
associated companies of 4,189,000, less writedowns of
investments in National Intergroup Inc of 11.8 mln and BRAE
Corp of 15.6 mln.


.I 14498
.C
acq
.W
TELECOM <TELE> COMPLETES SALE.
    BOCA RATON, Fla, March 24 - Telecom Plus INternational Inc
said it completed the sale of its 65 pct interest in Tel Plus
Communications Inc to Siemens Information Systems INc for about
173 mln dlrs.
    Telecom received 107 mln dlrs at closing with the balance
to be paid in installments. Siemen said it will dispute various
matters in the financial statement issues and other matters, it
said.


.I 14499
.C
cocoa
.W
HAITI, CZECHOSLOVAKIA JOIN COCOA ORGANIZATION.
    LONDON, March 24 - Haiti and Czechoslovakia have joined the
International Cocoa Organization (ICCO), bringing membership in
the United Nations charter body to 18 importing countries and
17 exporters, ICCO officials said.
    Haiti has provisionally applied to the ICCO as an exporting
member, and accounts for 0.92 pct of world cocoa exports, they
said. Czechoslovakia joined as an importer.


.I 14500
.C
earn
.W
INTEGRATED RESOURCES INC <IRE> 4TH QTR NET.
    NEW YORK, March 24 -
    Oper primary shr 1.03 dlr vs 2.55 dlrs
    Oper diluted shr 94 cts vs 1.76 dlrs
    Oper net 15.2 mln vs 23.4 mln
    Revs 272.0 mln vs 232 mln
    Avg shrs primary 7,625,000 vs 5,534,000
    Avg shrs diluted 12.3 mln vs 10.3 mln
    Year
    Oper shr 1.06 dlr vs 3.17 dlrs
    Oper net 39 mln vs 56.1 mln
    Revs 830.2 mln vs 657.9 mln
    Avg shrs 7,490,000 vs 5,557,000
    NOTE: 1986 oper net excludes 10.4 mln dlrs for discontinued
operations.
    1985 4th qtr excludes a loss of 4,570,000 dlrs and
6,330,000 dlrs, respectively, for discontinued operations.
    1986 oper net excludes a 10.5 mln dlr or 1.40 dlr per shr
loss from early extinquishment of notes.
    1986 and 1985 oper per share amounts are reported after
paying 31.0 mln dlrs and 38.5 mln dlrs, respectively, for
preferred stock dividends.
    1986 and 1985 4th qtr per share amounts are reported after
paying 7,292,000 dlrs and 9,333,000 dlrs, respectively, for
preferred stock dividends.
    1985's discontinued operations are restated.



.I 14502
.C
earn
.W
WEAN UNITED INC <WID> 4TH QTR.
    PITTSBURGH, March 24 -
    Shr loss one dlr vs profit seven cts
    Net loss 3.0 mln vs profit 349,000
    Revs 35.6 mln vs 49.3 mln
    Year
    Shr loss 2.87 dlrs vs loss 2.71 dlrs
    Net loss 8.4 mln vs loss 7.9 mln
    Revs 140.3 mln vs 169.2 mln
    NOTE:earnings reflect preferred dividend requirements, 1986
year includes one-time gain of 1.2 mln dlrs


.I 14503
.C
trade
.W
U.S. HOUSE PANEL EASES SOVIET EXPORT CONTROLS.
    WASHINGTON, March 24 - The U.S. House Foreign Affairs
Committee voted to ease restrictions on exports that are now
kept from shipment to Soviet-bloc countries but are no longer a
threat to U.S. national security.
    The Democratic-controlled committee said the
administration's export control policies, which restrict
shipment of thousands of products, contributed to last year's
record 169 billion dlr U.S. trade deficit.
    The committee said the legislation will cut government red
tape and make it easier for U.S. companies to compete with
foreign producers since many of the goods are readily available
from other countries.
    Rep. Don Bonker, chairman of the International Economic
Policy subcommittee, said the unnecessary restrictions had cost
the U.S. 17 billion dlrs in exports a year.
    "This is Congress' number one opportunity to attack the
trade deficit in a positive way by exporting more," the
Washington Democrat said.
    The legislation would order the Commerce Department to lift
controls on 40 pct of goods on the restricted export list over
the next three years unless other countries agree to comparable
controls.
    Most of these are of the least sophisticated type of
technology such as medical instruments.
    It would also give the Commerce Department primary
authority to decide which exports will be permitted and limit
the Defense Department to an advisory role in reviewing
requests to export highly-sensitive technology.


.I 14504
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 200,000 TONNES CORN  SWITCHED FROM UNKNOWN TO USSR FOR 1986/87.
Blah blah blah.

.I 14505
.C
money-fx
.W
******BALDRIGE SAYS CHANGES NEEDED IN EXCHANGE RATES OF CURRENCIES PEGGED TO DOLLAR.
Blah blah blah.

.I 14506
.C
earn
.W
******CHARTER CO 4TH QTR NET PROFIT 118.8 MLN DLRS VS LOSS 13 MLN DLRS.
Blah blah blah.

.I 14507
.C
earn
.W
ALEXANDER'S <ALX> 2ND QTR ENDS FEB 27 NET.
    NEW YORK, March 24 -
    Shr 57 cts vs 72 cts
    Shr diluted 57 cts vs 66 cts
    Net 2,699,000 vs 3,250,000
    Revs 190.8 mln vs 195.9 mln
    Six mths
    Shr 45 cts vs 84 cts
    Shr diluted 45 cts vs 79 cts
    Net 2,092,000 vs 3,784,000
    Revs 304.2 mln vs 304.6 mln
    NOTE: includes a change in accounting for investment tax
credit of 1,408,000, or 31 cts per share, in six mths prior.
    first qtr 1987 includes non-recurring charge of 1,488,000
for company's abandoning of its plan to convert to a limited
partnership.


.I 14508
.C
acq
.W
STANADYNE <STNA>, UNITED TECHNOLOGIES END TALKS.
    WINDSOR, Conn, March 24 - Stanadyne Inc said it terminated
discussions about its proposed purchase of United Technologies
Corp's Diesel Systems <UTX> unit.
    The reason was not disclosed.


.I 14512
.C
interest
.W
CITICORP <CCI> RULES OUT CREDIT CARD PRICE WAR.
    NEW YORK, March 24 - American Express Co's <AXP> recent
launch of a new "OPTIMA" credit card, with relatively low
interest rates and fees, will increase competition with bank
credit-card issuers but will not lead to a pricing war, a
senior Citicorp offical said.
    "Over the next two to three years, a very interesting
marketing battle will be fought ... competition will not be on
price but on product features," Pei-yuan Chia, head of the U.S.
card products group, told a banking analysts meeting.
    Citicorp is the leading U.S. bank credit-card issuer, with
some 10 mln accounts and an 11 pct market share.
    Chia said that Citicorp would focus its credit card
marketing efforts on acceptance, noting that Visa and
Mastercard currently enjoy a two-to-one advantage over American
Express in terms of worldwide acceptance.
    He also doubted the popularity of American Express' plan to
link interest charges on the new OPTIMA card to the bank prime
lending rate. "The consumer likes to have a fixed rate
instrument," he said.
    Richard Braddock, head of the whole individual banking
division, added that when there is increased competition, "it
is not the big people who get crunched but the small ones."


.I 14513
.C
earn
.W
NEW PROCESS CO <NOZ> SETS QTLY PAYOUT.
    WARREN, Pa., March 24 - New Process Co said it declared a
quarterly dividend of 12-1/2 cts, the regular dividend it pays
during the first three quarters of the year.
    The dividend is payable May 1 to shareholders of record
April 10.
    Last year, New Process paid an annual dividend of 1.18 dlrs
by paying 12-1/2 cts a share in each of the first three
quarters and a fourth quarter dividend of 80-1/2 cts.


.I 14514
.C
wheat;grain;corn;
.W
USDA REPORTS CORN SWITCHED TO USSR.
    WASHINGTON, March 24 - The U.S. Agriculture Department said
private U.S. exporters reported 200,000 tonnes of corn
previously to unknown destinations have been switched to the
Soviet Union.
    The corn is for delivery during the 1986/87 marketing year
and under the fourth year of the U.S.-USSR Long Term Grain
Supply Agreement.
    The marketing year for began September 1.
    Sales of corn to the USSR for delivery during the fourth
year of the agreement -- which began October 1, 1986 -- now
total 2,600,000  tonnes, it said.
    In the third agreement year sales totaled 6,960,700 tonnes
-- 152,600 tonnes of wheat and 6,808,100 tonnes of corn.


.I 14516
.C
earn
.W
PETROLEUM EQUIPMENT TOOLS CO <PTCO> 4TH QTR.
    HOUSTON, March 24 -
    Shr loss 57 cts vs loss 30 cts
    Net loss 5.9 mln vs loss 3.2 mln
    Revs 5.6 mln vs 16.3 mln
    Year
    Shr loss 2.11 dlrs vs loss 95 cts
    Net loss 22.0 mln vs loss 9.9 mln
    Revs 29.3 mln vs 66.3 mln


.I 14517
.C
acq
.W
SUNDOR GROUP BUYS DWG <DWG> UNIT'S ASSETS.
    DARIEN, Conn., March 24 - <Sundor Group Inc> said it
purchased DWG Corp's Texun Inc's line of regional juice
products.
    The purchase terms were not disclosed, the company said.


.I 14518
.C
earn
.W
QUICK AND REILLY GROUP <BQR> 4TH QTR FEB 28.
    NEW YORK, March 24 -
    Shr 72 cts vs 57 cts
    Net 4.5 mln vs 3.6 mln
    Revs 25.1 mln vs 21.9 mln
    Year
    Shr 2.47 dlrs vs 1.87 dlr
    Net 15.6 mln vs 11.8 mln
    Revs 89.1 mln vs 73.3 mln
   


.I 14519
.C
acq
.W
HAYES-ALBION <HAY> COMPLETES GOING PRIVATE DEAL.
    DETROIT, March 24 - Hayes-Albion Corp said its shareholders
approved a plan to merge with and become a wholly onwed
subsidiary of privately held Harvard Industries Inc.
    St. Louis-based Harvard Industries, a manufacturer and
distributor of automobile supplies, held 80 pct of Hayes
following completion of a 13 dlrs a share cash tender offer in
December.
    Under the merger agreement, remaining shareholders of
Hayes, a Jackson, Mich.-based maker of auto supplies, will
receive 13 dlrs cash for their shares.
    Trading in Hayes common will cease at the close of business
today, the company said.


.I 14520
.C
earn
.W
CHARTER CO <QCHR> 4TH QTR OPER LOSS.
    JACKSONVILLE, Fla., March 24 -
    Oper shr loss one ct vs loss four cts
    Oper net loss 336,000 vs profit 2,631,000
    Revs 237.2 mln vs 382.3 mln
    Avg shrs 47.4 mln vs 16.5 mln
    Year
    Oper shr profit 21 cts vs profit 12 cts
    Oper profit 9,922,000 vs profit 15.1 mln
    Revs 1.1 billion vs 1.6 billion
    Avg shrs 47.4 mln vs 16.5 mln
    NOTE: 1986 4th qtr and year oper net excludes a gain of
28.6 mln dlrs and 28.5 mln dlrs or 60 cts per share,
respectively, for discontinued operations.
    1986 4th qtr and year oper net excludes a gain of 90.5 mln
dlrs or 1.91 dlr per share and 114.8 mln dlrs or 2.42 dlrs per
share, respectively, mainly for settlement of dioxin-related
claims in reorganization proceedings.
    1985 4th qtr and year oper net excludes a loss of 41.2 mln
dlrs or 2.51 dlrs per share and a loss of 36.3 mln dlrs or 2.21
dlrs per share, respectively, for discontinued operations.
    1985 4th qtr and year oper net excludes a gain of 25.6 mln
dlrs or 1.56 dlr per share and 29.4 mln dlrs or 1.79 dlrs per
share for settlement of claims and utilization of tax loss
carryforward.
    1985 year oper net also excludes a loss of seven mln dlrs
for change in inventory evaluation method.


.I 14524
.C
earn
.W
NUMEREX CORP <NMRX> 2ND QTR JAN 31 LOSS.
    MINNEAPOLIS, MINN., March 24 - 
    Shr loss seven cts vs profit five cts
    Net loss 149,421 vs profit 103,120
    Sales 1,698,345 vs 1,920,010
    Six Mths
    Shr loss five cts vs profit nine cts
    Net loss 100,472 vs profit 191,614
    Sales 3,836,794 vs 3,650,322


.I 14528
.C
money-fx;trade;
.W
BALDRIGE SUPPORTS NIC TALKS ON CURRENCIES.
    WASHINGTON, March 24 - Commerce Secretary Malcolm Baldrige
said he supported efforts to persuade newly-industrialized
countries (NICS) to revalue currencies that are tied to the
dollar in order to help the United States cut its massive trade
deficit.
    "We do need to do something with those currencies or we
will be substituting Japanese products for Taiwanese products,"
or those of other nations with currencies tied to the dollar,
Baldrige told a House banking subcommittee.
    The U.S. dollar has declined in value against the Yen and
European currencies, but has changed very little against the
currencies of some developing countries such as South Korea and
Taiwan because they are linked to the value of the dollar.
    As a result, efforts to reduce the value of the dollar over
the past year and a half have done little to improve the trade
deficits with those countries.
    Baldrige told a House Banking subcommittee that the
Treasury Department was attempting to persuade those countries
to reach agreement with the United States on exchange rates.



.I 14531
.C
acq
.W
******EASTMAN KODAK CO TO SELL HOLDINGS IN ICN PHARMACEUTICALS AND VIRATEK INC.
Blah blah blah.

.I 14533
.C
interest
.W
TREASURY BALANCES AT FED ROSE ON MARCH 23.
    WASHINGTON, March 24 - Treasury balances at the Federal
Reserve rose on March 23 to 3.332 billion dlrs from 3.062
billion dlrs on the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 15.513
billion dlrs from 17.257 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 18.845
billion dlrs on March 23 compared with 20.318 billion dlrs on
March 20.


.I 14535
.C
iron-steel
.W
USX <X> USS UNIT RAISES PRICES.
    LORAIN, Ohio, March 24 - USX Corp's USS subsidiary said
that effective with shipments beginning July 1 prices for all
leaded grades and 1200-series grades of hot rolled bar and
semi-finished products from its Lorain, Ohio, facility will be
increased by 15 dlrs a ton over the prices in effect June 1.
    It said the increase is being made to reflect current
market conditions.


.I 14536
.C
trade
.W
UNIONIST URGES RETALIATION AGAINST JAPAN.
    WASHINGTON, March 24 - William Bywater, president of the
International Union of Electronic Workers, called on President
Reagan to retaliate against Japan for unfair practices in
semiconductor trade.
    He said in a statement a crash program was needed in the
semiconductor industry to prevent the United States from
becoming "one of the world's industrial lightweights."
    Bywater's remarks came as the White House Economic Policy
Council prepared for a Thursday meeting to decide what
sanctions if any should be taken against Japan for alleged 
violations of a U.S.-Japanese semiconductors agreement.
    The pact, agreed to last July, called for Tokyo to end
selling semiconductors at below cost and to open its home
market to U.S. goods. In return, Washington agreed to forego
antidumping duties on Japanese semiconductors.
    But U.S. officials have said that while Japan has stopped
dumping in the U.S. market, it has not ended third country
dumping; nor has it opened its market to U.S. semiconductors.
    Japan yesterday, in an effort to ward off U.S. action,
ordered a cutback in semiconductors production as a way to
force prices up and end the dumping.
    Bywater, in his statement, said he backed a Defense Science
Board task force proposal to set up a consortium to develop new
electronic products and manufacturing processes and make the
U.S. industory more competitive.
    But he added the industry could not wait for legislation to
pass and that action was required now to help the depressed
electronic industry.
    Bywater said, "I urge the Reagan Administration to take full
and severe action immediately against Japan by invoking the
retaliatory steps that are permitted under U.S. law and GATT
(General Agreement on Tariffs and Trade)."


.I 14539
.C
grain;rice;
.W
ZAIRE AUTHORIZED TO BUY PL 480 RICE - USDA.
    WASHINGTON, March 24 - Zaire has been authorized to
purchase about 30,000 tonnes of U.S. rice under an existing PL
480 agreement, the U.S. Agriculture Department said.
    It may buy the rice, valued at 5.5 mln dlrs, between March
31 and August 31, 1987, and ship it from U.S. ports by
September 30, the department said.
    The purchase authorization covers the entire quantity of
rice provided under the agreement.


.I 14541
.C
acq
.W
MIDIVEST ACQUIRES ASSETS OF BUSINESS AVIATION.
    ROANOKE, Va., March 24 - <Midivest Inc> said it acquired
all the assets of <Business Aviation Inc> of Sioux Falls, S.D.,
for an undisclosed amount of stock.
    Midivest said it expects to sell 10 to 20 of the renovated
Beechcraft planes next year. It said management will also lease
these airborne intensive care units to hospitals and government
subdivisions through Metropolitan Leasing, a wholly-owned
subsidiary of Midivest.


.I 14542
.C
wheat;grain;
.W
U.S. WHEAT CREDITS FOR JORDAN SWITCHED.
    WASHINGTON, March 24 - The Commodity Credit Corporation
(CCC) has switched 25.0 mln dlrs in wheat credit guarantees to
Jordan under the Export Credit Guarantee Program to the
Intermediate Export Credit Guarantee Program, the U.S.
Agriculture Department said.
    The switch reduces the total value of GSM-102 guarantees
for the current fiscal year to 30.0 mln dlrs.
    The credit terms extended for export sales under the
Intermediate Export Credit Guarantee Program (GSM-103) must be
in excess of three years but not more than seven years.
    All sales must be registered and exports completed by
September 30, 1987, the department said.


.I 14543
.C
dlr
.W
DOLLAR EXPECTED TO FALL DESPITE INTERVENTION.
    By Claire Miller, Reuters
    NEW YORK, March 24 - Central bank intervention in the
foreign exchange markets succeeded in staunching the dollar's
losses today, but senior dealers here believe the U.S. currency
is headed for a further retreat.
    Although the intervention was widespread, dealers perceive
that the six major industrial nations have differing levels of
commitment to their recent accord to stabilize currencies.
    Moreover, hard economic realities hold greater sway over
the currency market than central bank intervention and these
argue for a further dollar decline, dealers said.
    "The market can be bigger than the central banks. And
economic fundamentals will always come to the fore," said a
dealer at one major U.S. bank.
    As the dollar dropped to post-World War II lows against the
yen today foreign exchange traders said the Bank of Japan,
Federal Reserve Board and Bank of England intervened in the
markets on behalf of the U.S. currency.
    Reports of the authorities' actions helped the dollar
recover to about 149.45 yen in New York this afternoon from
the post-war low of 148.20 yen in the Far East. But it still
failed to regain Monday's U.S. closing level of 150.00/05 yen.
    Tokyo dealers said the Bank of Japan bought one to 1.5
billion dlrs in Tokyo today and may also have purchased dollars
yesterday in the U.S. via the Federal Reserve.
    Meanwhile, there were strong rumors in New York that the
Fed also bought a modest amount of dollars around 148.50 yen
today. Talk also circulated that the Bank of England purchased
a small amount of dollars for yen.
    The Fed's last confirmed intervention was on January 28
when it bought 50 mln dlrs in coordination with the Bank of
Japan. But on March 11 the Fed also was rumored to have
signalled displeasure with a dollar surge above 1.87 marks.
    The authorities' actions appeared to back up the February
22 Paris pact between the U.S., Japan, West Germany, Britain,
France and Canada under which the nations agreed to cooperate
to foster exchange rate stability around prevailing levels.
    But foreign exchange dealers were not overly impressed by
the authorities' intervention which they said can only soften
extreme moves in the market.
    For one thing, some dealers believed that the Fed's
purchases were done on behalf of the Bank of Japan rather than
for the U.S. central bank's own account, suggesting a rather  
watered-down American commitment to the currency accord.
    The Bank of England's action also was thought to be
completed on behalf of the Japanese central bank, reinforcing
the market's view that Japan is the most resolute of the six
nations in its support of the currency pact.
    "No-one doubts the Bank of Japan is serious. But the other
two central banks seem to be making more token gestures than
anything else," said Chris Bourdain of BankAmerica Corp.
    "I'm not convinced the intervention was concerted," said
Earl Johnson of Harris Trust and Savings Bank in Chicago. 
"It's a yen problem more than anything else."
    Some dealers said a rising wave of trade protectionist
sentiment in the U.S. limits the extent to which the American
authorities can endorse a stronger dollar against the yen.
    "The dollar's break below the key 150 yen level ties the
Treasury's hands behind its back. The U.S. cannot intervene on
its own account because of the strength of protectionism here,"
said Albert Soria of Swiss Bank Corp.
    Such comments reflect the view that the currency markets
are becoming increasingly politicized. Despite official
denials, some traders still feel the U.S. would countenance a
lower dollar to help trim the nation's trade deficit.
    The majority of the 170 billion dlr merchandise trade
deficit in 1986 was with Japan.
    Indeed U.S. Treasury secretary James Baker's comment on
Sunday that the February currency pact had not established
dollar targets was read by the market as a signal to sell the
U.S. currency and kicked off the latest retreat.
    "The dollar still has more room on the downside against the
yen based on the frictions in trade and financial services. The
currency market is becoming very political," said Natsuo Okada
of Sumitomo Bank Ltd.
    Okada expects the dollar to trade between 148 and 150 yen
this week but sees the chance of a drop to 140 yen by the end
of April or early May.
    Even if West Germany and Japan succeed in stimulating their
economies, it may not be enough to solve structural economic
imbalances in the near future, dealers said.
    "Even if Japan and West Germany do expand this year, it
won't be enough to help the trade situation much," said
Bourdain of BankAmerica, who also expects the dollar to drop to
148 yen in the next couple of days.


.I 14546
.C
acq
.W
EASTMAN KODAK <EK> TO SELL HOLDINGS.
    ROCHESTER, N.Y., March 24 - Eastman Kodak Co said it plans
to sell its 2.3 pct holding in ICN Pharmaceuticals <ICN> and
part of its nine pct holdings in Viratek <VIRA>.
    It said the purpose of the investments had been to lay the
groundwork for the creation of its Nucleic Acid Research
Institute.
    Since that has been achieved, there is no longer any reason
to maintain the equity positions, Kodak said.
    Kodak holds 470,000 sahres of ICN, currently trading at
about 18-3/4 and 700,000 of Viratek, trading at 44.


.I 14548
.C
acq
.W
FIRM REDUCES SCEPTRE RESOURCES <SRL> HOLDINGS.
    WASHINGTON, March 24 - Montreal-based Noverco Inc told the
Securities and Exchange Commission it reduced its stake in
Sceptre Resources Ltd to 1,232,200 shares or 4.8 pct of the
total outstanding.
    Noverco said it sold off 400,500 shares "to reduce the
investment of Noverco in Sceptre."
    "Additional common shares of Sceptre may be sold or
purchased by Noverco, depending upon market conditions," Noverco
said.


.I 14550
.C
earn
.W
<ACKLANDS LTD> 1ST QTR FEB 28 NET.
    TORONTO, March 24 -
    Shr three cts vs 11 cts
    Net 126,000 vs 434,000
    Revs 84.0 mln vs 80.2 mln
    Avg shrs 4,948,731 vs 3,870,511


.I 14551
.C
earn
.W
BULL AND BEAR GROUP A <BNBGA> CUTS FUND PAYOUTS.
    NEW YORK, March 24 - Bull and Bear Group A said it lowered
its monthly dividends on three of its funds.
    It said it lowered its Tax Free Income Fund <BLTFX> to 10.3
cts from 10.6 cts; its U.S. Government Guaranteed Securities
Fund <BBUSX> to 11.5 cts from 11.8 cts; and its High Yield Fund
<BULHX> to 14 cts from 14.2 cts.
    All dividends are payable March 31 to shareholders of
record March 25, the company said.


.I 14552
.C
crude
.W
CALTEX TO RAISE BAHRAIN OIL PRODUCT PRICES.
    NEW YORK, March 24 - Caltex Petroleum Corp said it will
raise
posted prices for naphtha and several grades of residual fuel
in Bahrain, effective March 25.
     Caltex, a joint venture of Chevron Corp <CHV> and Texaco
INC <TX>, said its naphtha posting is up four cts a gallon to
43 cts. It said it is raising its marine diesel oil posting by
30 cts a barrel to 20.24 dlrs a barrel.
    Light, medium, and heavy fuel oil postings are up 1.50 dlrs
a barrel, the company said. This will bring the light fuel oil
price to 16.90 dlrs, medium to 15.50 dlrs, and heavy to 14.60
dlrs, the company said.


.I 14553
.C
pet-chem
.W
CHARTER CO <QCHR> TO COMPLETE REORGANIZATION.
    JACKSONVILLE, Fla., March 24 - Charter Co, the huge
petrochemical concern in bankruptcy proceedings stemming from
hundreds of dioxin-related claims, said it and all of its
subsidiaries, except the Independent Petrochemical Corp, will
complete their reorganization on March 31.
    It said that on that date, it will deposit with an escrow
agent 288.8 mln dlrs in cash, 66.7 mln dlrs in notes and 31 mln
shares of its common for distribution.
    Company officials were not immediately available for
comment.
    As previously reported, Charter settled dioxin-related
claims for about 1,200 individuals and the state of Missouri,
resolving claims against it and all subsidiaries except
Independent Petrochemical.
    Charter said some of the settlements remain subject to
appeals and final court approvals and resolve claims against
charter and its subsidiaries except Independent Petrochemical.
    It said about 500 individual claims against it and certain
of its units remain pending as disputed claims in bankruptcy
court. It said about 300 of these claims have been filed since
confirmation of the joint plan of reorganization.
    Charter said its two creditors, an equity committee in its
bankruptcy proceedings and <American Financial Corp>, which
will own 50.5 pct of its common after the reorganization, have
waived the requirement that Charter resolve all dioxin-related
claims against it prior to completing its reorganization.
    That requirement excludes claims against Independent
Petrochemical. Charter also said a plan for liquidation of
Independent has been approved by the bankruptcy court and will
be completed after March 31.
    Earlier, Charter reported net income for the year of 153.2
mln dlrs, which included a gain of 28.5 mln dlrs for
discontinued operations and 114.8 mln dlrs for the settlement
of claims in its reorganization proceedings.
    In 1985, it reported earnings of 1,274,000 dlrs, which
included a loss of 36.3 mln dlrs for discontinued operations
and 29.4 mln dlrs for extraordinary items.
    For the fourth quarter, it reported earnings of 118.8 mln
dlrs, including a gain of 28.6 mln dlrs for discontinued
operations and 90.5 mln dlrs mainly for claims settlements. In
the year-ago period, Charter reported a loss of 13 mln dlrs.


.I 14554
.C
acq
.W
NASHUA <NSH> TO PURCHASE PRIVATE DISC MAKER.
    NASHUA, N.H., March 24 - Nashua Corp said it signed a
letter of intent to purchase <Lin Data Corp>, a private
manufacturer of high-capacity rigid discs for storage of
computer data.
    Under the terms of the letter, Nashua said it will acquire
all classes of Lin stock for 24 mln dlrs. In addition, it said
it will loan Lin 1,200,000 dlrs to support its operations.
    The closing of the sale is set for the second quarter of
1987, the company said.


.I 14555
.C
earn
.W
ALTRON INC <ALRN> 4TH QTR JAN 3.
    WILMINGTON, Mass, March 24 -
    Shr loss 56 cts vs loss five cts
    Net loss 1.9 mln vs loss 164,000
    revs 6.9 mln vs 5.4 mln
    Year
    Shr loss 1.15 dlrs vs profit 52 cts
    Net loss 3.8 mln vs profit 1.7 mln
    Revs 25.6 mln vs 29.8 mln
    NOTE: 1987 net loss includes loss 6.5 mln dlrs for
nonrecurring reserve for closing costs of facility, writeoffs
and sales of real estate.
    


.I 14557
.C
earn;acq;
.W
GENCORP <GY> PROPOSALS WITHDRAWN FROM MEETING.
    AKRON, Ohio, March 24 - GenCorp Inc said it withdrew from
consideration at its annual meeting on March 31 proposals aimed
at providing for a stock split and an increased dividend so
that it could focus its energies on responding to the takeover
offer made last week by a partnership of AFG Industries Inc
<AFG> and Wagner and Brown.
    In addition to proposing an increase in the number of its
outstanding common shares, GenCorp had suggested the adoption
of a classified or "staggered" board and the elimination of
cumulative voting.
    GenCorp said these proposals could "distract energy and
attention from the real task at hand -- to respond to the
tender offer in a manner which is in the best interests of the
company, its shareholders and its other constituencies."
    GenCorp said the proposal to increase its outstanding
shares was made with the aim of declaring a stock split and a
dividend increase.
    The other proposals, it said, would provide for greater
long-term stability and cohesiveness for the GenCorp board.
    The company did not indicate when it might resubmit the
proposals for approval by its shareholders.


.I 14560
.C
gas;crude;
.W
******API SAYS DISTILLATE STOCKS OFF 4.07 MLN BBLS, GASOLINE OFF 2.69 MLN, CRUDE UP 8.53 MLN.
Blah blah blah.

.I 14561
.C
earn
.W
VERMONT FINANCIAL SERVICES <VFSC> SETS PAYOUT.
    BRATTLEBORO, Vermont, March 24 - Vermont Financial Services
Corp said its board approved a regular 20 cts per share cash
dividend payable April 25 to shareholders of record March 26.


.I 14562
.C
acq
.W
******RESORTS INTERNATIONAL GETS BUYOUT PROPOSAL FROM KSZ CO INC.
Blah blah blah.

.I 14565
.C
earn
.W
GREAT ATLANTIC AND PACIFIC TEA CO INC <GAP> DIV.
    NEW YORK, March 24 -
    Qtly div 10 cts vs 10 cts prior
    Payable May one
    Record April 15


.I 14566
.C
acq
.W
GARTNER GROUP <GART> ACQUIRES COMTEC PROGRAM.
    STAMFORD, Conn., March 24 - Gartner Group Inc said it
acquired sole ownership of the COMTEC Market Research Program.
    Gartner said its wholly-owned subsidiary purchased the
interests of its former partners for an aggregate price of
1,125,000 plus a percentage of net sales proceeds on future
sales of certain products.
    Prior to the acquisition, Gartner Group owned one-third in
the COMTEC partnership, it said.


.I 14568
.C
acq
.W
RESORTS INT'L <RT.A> RECEIVES TAKEOVER OFFER.
    ATLANTIC CITY, N.J., March 24 - Resorts International Inc
said it received a proposal from <KSZ Co Inc> under which
holders of Resorts class B stock would receive 140 dlrs a share
in cash and one share of common stock in a new company to be
formed through the takeover.
    Under the offer, Resorts said holders of its class A shares
would receive 15 dlrs a share in cash and three shares of
common stock in the new company.
    Resorts said the offer from KSZ calls for a merger of
Resorts with RI Acquisition Co Inc, a newly formed Delaware
corporation.
    Resorts said that prior to the merger, RI Acquisition would
be capitalized with about 100 mln dlrs of debt and about 220
mln dlrs of equity.
    It said 200 mln dlrs of the equity would be in the form of
special preferred stock.
    The KSZ offer, Resorts said, indicates that KSZ has a
commitment from <M. Davies Cos> to buy all of the special
preferred stock.
    Resorts said the offer will expire at 1700 EST on March 27.
It said it asked its investment advisor, Bear, Stearns and Co,
to advise its board on the offer.
    Earlier this month, the estate of James M. Crosby and
certian members of his family agreed to sell their class B
shares to New York real estate tycoon Donald Trump for 135 dlrs
a share. The estate and family members hold 78 pct of the
752,297 class B shares outstanding.
    Trump also agreed to pay 135 dlrs a share for the remaining
class B shares outstanding.
    Resorts also has about 5,680,000 shares of outstanding
class A stock. These shares carry one one-hundredth the voting
power of the class B shares.
    Trump's offer beat out a rival bid of 135 dlrs a share made
by Pratt Hotel Corp <PRAT>.
    Resorts said that under the proposal made by KSZ, existing
class A and class B shareholders would control about 96 pct of
the outstanding common of the new company formed to acquire
Resorts.
    Resorts said the new company, upon completion of the
merger, would hold the 220 mln dlrs of debt and that the
special preferred stock would immediately be converted into
exchangeable participating preferred of the new company.
    This preferred, Resorts said, would pay a dividend based on
the net cash flows from the new company's Paradise Island
operations.
    A Resorts spokesman said the KSZ offer was made in a
two-page letter and that Resorts could not comment on it
because it did not contain enough information. Resorts has
asked Bear, Sterns to obtain complete data, he said.
    The spokesman said Resorts is not familiar with KSZ but
that it believes the company is controlled by Marvin Davis, the
Denver oilman.
    Calls to Davis were referred to Lee Solters, who handles
public relations for Davis. Solters, said to be travelling, was
not immediately available for comment.
    Donald Trump was also unavailable for comment, as was a
spokesman for the Crosby estate.


.I 14569
.C
earn
.W
CITICORP <CCI> SEES DOUBLING IN RETAIL BANK NET.
    NEW YORK, March 24 - Citicorp expects net income in its
individual banking sector to top one billion dlrs by 1993,
compared with 462 mln dlrs in 1986, said Richard Braddock, head
of Citicorp's individual banking division.
    "We can double our earnings over the next five to seven
years," he told a banking analysts meeting, adding that this
forecast may be on the conservative side.
    He said that bank card operations and the New York branch
system would continue to turn in hefty profits but also picked
out other developing areas, such as U.S. mortgage and
international consumer, as major potential earners.
    Braddock and his sector heads made the following more
specific predictions:
    - Cost of funds and net credit loss levels in the U.S.
bankcard unit will taper off in coming years from 1986's
relatively inflated levels.
    - Customer net revenue in the mortgage banking area will
rise to 464.7 mln dlrs in 1987 from 374.3 mln in 1986.
    - The international consumer business will show 22 pct
compound annual growth in earnings between 1986 and 1992.
    - Private banking earnings will hit 100 mln dlrs in 1987
and top 200 mln dlrs in 1992.


.I 14570
.C
earn
.W
WD-40 CO <WDFC> 2ND QTR FEB 28 NET.
    SAN DIEGO, Calif., March 24 -
    Shr 35 cts vs 40 cts
    Net 2,642,000 vs 3,017,000
    Sales 19.1 mln vs 18.9 mln
    Six Mths
    Shr 69 cts vs 70 cts
    Net 5,178,000 vs 5,299,000
    Sales 35.6 mln vs 33.8 mln


.I 14572
.C
trade
.W
BRAZIL COMPUTER MARKET TO REMAIN CLOSED-MINISTER.
    RIO DE JANEIRO, MARCH 24 - Brazilian Science and Technology
Minister Renato Archer said Brazil will keep its computer
market closed to foreign goods in order to give its own infant
industry time to develop.
    "Every country establishes laws to protect its interests.
The United States closed their borders at a certain stage to
some foreign goods and therefore protected its industrial
development. Now it is time for Brazil to do likewise," Archer
said at the opening of a national software conference.
    After several meetings, Brazil and the U.S. Have made no
major progress in their computer row, which they have been
trying to resolve for the past 18 months.
    The Reagan administration has objected to Brazil protecting
its computer industry from imports.


.I 14574
.C
earn
.W
NORTHERN INDIANA PUBLIC SVC <NI> AGAIN OMITS DIV.
    HAMMIND, Ind., March 24 - Northern Indiana Public Service
Company said it again omitted its quarterly common stock
dividend which would have been payable in May.
    NIPSCO said it has not paid a qtly dividend since December
1985 following an adverse decision by the Indiana Supreme Court
denying amortization of about 191 mln dlrs NIPSCO invested in
its Bailly N-1 project.


.I 14575
.C
dlr;money-fx;
.W
******FED'S JOHNSON SAYS DOLLAR STABILIZED AFTER FED TOOK APPROPRIATE ACTION.
Blah blah blah.

.I 14576
.C
money-fx;trade;
.W
FED CHAIRMAN VOLCKER SAYS BANK PROPOSALS A WORRY.
    WASHINGTON, March 24 - The chairman of the Federal Reserve
Board, Paul Volcker, has written to the chairman of the House
Banking Committee to raise concerns about legislative proposals
scheduled for consideration Wednesday.
    Volcker told committee chairman Fernand St. Germain a
proposal to deny primary dealer status to firms from countries
that do not grant U.S. firms equal access to their government
debt markets might invite retaliation against U.S. firms
abroad.
    He added, "even Japan, against whom this proposal seems to
be particularly directed," has started opening its markets.
    In his letter, made available at the Treasury, Volcker also
said a proposal to ease debt problems of developing countries
by setting up a public facility to buy their debts owed to
commercial banks, was a problem.
    "I believe that the prospect of debt relief would undermine
the difficult internal efforts of the borrowing countries to
achieve the structural reform that is needed regardless of the
policies that are followed on servicing external debt," Volcker
said.
    It might also cause private lenders to become reluctant to
extend more credit to the borrowing countries, he said.
    Volcker said he endorsed comments by Treasury Secretary
James Baker "about the inappropriateness of using public
resources for purchasing private commercial bank debt, which we
both see as an inherent aspect of the proposed international
debt facility."
    He also said a proposal for establishing formal procedures
for international negotiations on currency exchange rates "is
unrealistic and could well have damaging effects."
    "For example, the bill's directive to intitiate negotiations
in order to achieve a competitive exchange rate for the dollar
-- a matter upon which there can be considerable difference
among analysts -- runs the risk of building up potentially
destabilizing market expectations," Volcker said.
    He recommended "we should not lock ourselves into formalized
procedures for international negotiations" on exchange rates but
instead use other, more flexible means like the recent mmeting
in Paris between U.S. treasury and central bank representatives
and those of major trade allies.


.I 14577
.C
earn
.W
BORMAN'S INC <BRF> DECLARES QTLY DIVIDEND.
    DETROIT, Mich., March 24 -
    Qtly div five cts vs five cts prior
    Pay June 15
    Record May 18


.I 14579
.C
oilseed;grain;corn;soybean;
.W
U.S. CORN ACREAGE SEEN NEAR RECORD LOW.
    by Maggie McNeil, Reuters
    WASHINGTON, March 24 - U.S. corn acreage this year is 
likely to drop to the lowest level since the unsurpassed
acreage reductions of the 1983 PIK year and could rank as one
of the lowest corn plantings in the United States in sixty
years, Agriculture Department officials said.
    USDA releases its official plantings report on March 31.
Agriculture Department analysts said next week's figures will
likely show a sharp drop in acreage to as low as 65 mln acres,
down 22 pct from last year's plantings of 83.3 mln acres.
    Assuming an 18 mln acre drop in plantings, U.S. corn
production will also decrease significantly. Analysts said 1987
corn production could drop by over one billion bushels to
around seven billion bushels.
    Expected signup of up to 90 pct in the 1987 feed grains
program, along with 1.9 mln acres enrolled in the conservation
program, will cause acreage to plummet, Department feedgrain
analysts said.
    "There's no question that there will be a sharp decrease in
corn acreage," one said. "It's difficult for any farmer to not
go along with the program this year."
    Soybean acreage is also expected to decline this year but
at a much slower rate of around four pct, USDA analysts said.
    Soybean plantings could drop to 59 mln acres or below, they
said, compared to last year's level of 61.5 mln acres.
    If analysts' unofficial estimates prove correct then the
drop in u.s. corn acreage will be the largest since 1983 when
farmers idled 22 mln acres in the Payment-In-Kind program.
    Farmers planted only around 60 mln acres of corn in 1983. A
severe drought that summer in major producing states caused
yields to tumble and final crop production to total only 4.2
billion bushels.
    Given normal weather conditions this year, USDA analysts
said the 1987 corn crop could end up around seven billion
bushels, down from last year's crop of 8.3 billion bushels.
    "This kind of acreage reduction will mean a significant
reduction in production," an analyst said.
    A crop of seven billion bushels is close to the annual U.S.
corn usage, so surplus stocks, while not decreasing, would not
increase significantly, a specialist said.
    High producing corn belt states are expected to show the
greatest acreage reductions, based upon historical
participation in government programs, analysts said.
    In contrast, soybean acreage is likely to be cut the most
in marginal producing areas of the southeast and the western
corn belt, a USDA soybean analyst said.
    "Soybean acreage in the eastern corn belt will not budge,"
he said. Neither does he expect any significant acreage cuts in
higher-producing delta areas.
    Soybean production could drop fractionally from last year's
2.0 billion bushels to 1.8 to 1.9 billion, he said.
    U.S. soybean acreage, after soaring to 71.4 mln acres in
1979 from only 52 mln acres five years prior to that, has
steadily declined in the 1980's.
    U.S. corn acreage, with the exception of 1983, has been in
the low to mid 80-mln acre range for the past 10 years. The
highest corn plantings reported in the 60 years that USDA has
kept such records was in 1932 when farmers planted 113 mln
acres and obtained average yields of 26.5 bushels per acre.
    Last year U.S. farmers obtained record corn yields
averaging 119.3 bushels per acre.
    "We have absolutely no trouble producing an eight billion
bushel crop on only 80 mln acres or so," an analyst said.
    Corn acreage will probably level at around 65 mln acres as
long as government program provisions remain the same, analysts
said.
    Currently farmers enrolling in the program are required to
set aside 20 pct of their base acreage and then are eligible
for payments of two dlrs per bushel by idling an additional 15
pct of their acreage.
    "To get to the PIK level of 60 mln acres, we would have to
provide more incentives," an analyst said.


.I 14580
.C
acq
.W
KIRSCHNER <KMDC> COMPLETES PURCHASE.
    TIMONIUM, Md., March 24 - Kirschner Medical corp said it
completed the acquisition of Minnesota Mining and
Manufacturing's <MMM> orthopedic metal implant line division.
    The acquisition price is 12.0 mln dlrs in cash, a six mln
dlr three year note and 100,000 shares of Kirschner common
stock.
    The division had sales of 11.3 mln dlrs in 1986.


.I 14581
.C
hog;livestock;carcass;trade;
.W
U.S. SENATORS SEEK TO EXPAND USDA EXPORT BONUS.
    WASHINGTON, March 24 - Leading U.S. farm state senators are
seeking to insert into the Senate's omnibus trade bill a
provision that would broaden eligibility requirements under the
U.S. Agriculture Department's export enhancement program, EEP,
to include traditional buyers of U.S. farm products, including
the Soviet Union, Senate staff said.
    Under existing criteria, USDA can offer EEP subsidies to
recoup export markets lost to competing nations' unfair trading
practices.
    Senate Agriculture Committee Chairman Patrick Leahy (D-Vt.)
is leading a group of farm state senators in an effort to
broaden the criteria in such a way as to enable Moscow to be
eligible for the subsidies, sources said.
    The senators -- including Senate Finance Committee Chairman
Lloyd Bentsen (D-Tex.), Max Baucus (D-Mont.), David Pryor
(D-Ark.), John Melcher (D-Mont.) and Thad Cochran (R-Miss.) --
also may fold into the trade bill a measure to shield pork
producers and processors from Canadian imports.
    The measure, sponsored by Sen. Charles Grassley (R-Iowa),
would clarify the definition of "industry" in determining whether
or not imports were causing injury to U.S. producers.
    Grassley's bill stems from a 1985 decision by the
International Trade Commission that imports from Canada of live
swine -- but not fresh, chilled and frozen pork -- were harming
U.S. producers.
    The bill's proponents have argued Canada has simply
replaced shipments of live hogs with fresh pork.


.I 14582
.C
dlr;money-fx;
.W
FED'S JOHNSON SAYS FED ACTED TO STABILIZE DOLLAR.
    WASHINGTON, March 24 - Federal Reserve Board Vice Chairman
Manuel Johnson said the dollar has stabilized against other
currencies after action taken by the Fed.
    "We have taken the appropriate action and the dollar has
stabilized," Johnson said after testifying to a House Banking
subcommittee.
    He did not elaborate on the nature of the action nor when
it was taken, but said that it was in the spirit of the
agreement reached by six industrial nations in Paris recently.
    Johnson said the dollar's decline against other currencies
such as the Japanese yen has been gradual.
    Since the accord by the United States, Britain, West
Germany, Japan, France and Canada, foreign exchange markets
have been closely watching for indications of intervention by
central banks to determine the committment by those nations to
their agreement.
    The nations agreed that currency exchange rates were at
about the correct levels when the pact was signed earlier this
year.


.I 14585
.C
acq
.W
MARYLAND NATIONAL <MDNT> SEES NEW NAME.
    BALTIMORE, March 24 - Maryland National Corp, the parent of
Maryland National Bank which earlier this month merged with
American Security Bank, said its shareholders will vote on a
new name for the regional bank holding company at its April 29
annual meeting.
    It said MNC Financial Inc is the proposed new name for the
parent company. The banks merged on March 16, and have combined
assets of about 14 billion dlrs.
    Maryland said the new name only will be used for the parent
and it does not plan to change the names of Maryland National
Bank, American Security Bank or non-bank affiliates.


.I 14586
.C
crude
.W
VENEZUELA TO ANNOUCE PARTNER FOR COAL VENTURE.
    CARACAS, March 24 - Petroleos de Venezuela S.A will
announce within two weeks the name of a foreign consortium it
has chosen to help exploit the coal deposits at Guasare in
western Zulia state, PDVSA president Juan Chacin Guzman said.
    Chacin told reporters the foreign partner will provide
capital as well as technical and marketing expertise to the
Carbozulia project, which the state oil company will manage.
    PDVSA officials said that among those who bid for the
partnership is a consortium between Agip Carbone, a subsidiary
of Italy's Ente Nazionale Idrocarburi (ENI), and Atlantic
Richfield <ARC> of the United States.
    Minister of Energy and Mines Arturo Hernandez Grisanti said
discussions are currently taking place to finalize the terms of
the contract with the foreign partner.
    PDVSA vice-president Pablo Reimpell said last week the
first shipment of coal from the Carbozulia project should be
made during the final quarter of 1987, and would measure
between 100-150,000 metric tons.
    Plans call for production to eventually reach 500,000 mt
annually. Reimpell said the original investment in the project
will be approximately 8 billion bolivars.


.I 14587
.C
earn
.W
GOTTSCHALKS INC <GOT> 4TH QTR NET.
    FRESNO, Calif, March 24 -
    Shr 37 cts vs 50 cts
    Net 2,776,000 vs 2,756,000
    Sales 46.9 mln vs 38.8 mln
    Avg shrs 7,508,000 vs 5,550,000
    Year
    Shr 58 cts vs 55 cts
    Net 4,021,000 vs 3,005,000
    Sales 125.9 mln vs 112.8 mln
    Avg shrs 7,090,000 vs 5,500,000


.I 14588
.C
acq
.W
******BORG-WARNER SAYS IT DISCUSSED POSSIBLE TAKEOVER WITH IRWIN JACOBS.
Blah blah blah.

.I 14589
.C
acq
.W
******CYCLOPS CORP SAYS CYACQ'S AMENDED OFFER RESTATES ORIGINAL CONDITIONS.
Blah blah blah.

.I 14590
.C
sugar
.W
U.S. SUGAR QUOTA MAY BE EASED, CONGRESSMAN SAYS.
    WASHINGTON, MARCH 24 - The United States may soon ease its
1987 sugar import quota of one mln short tons by bringing
forward to the third quarter some shipments scheduled for the
fourth quarter of 1987, Jerry Huckaby, a leading Congressman
representing sugar growers told Reuters in an interview.
    Huckaby, a Louisiana Democrat and chairman of the House
subcommittee which deals with the sugar program, indicated the
easing of the quota might be a way to calm the concern about
the impact of the severe cut in U.S. sugar imports this year.
    "With imports coming down from 1.8 mln (last year) to one
mln, there is legitimate concern about the impacts on Caribbean
countries and the Philippines," Huckaby said.
    By bringing forward to the third quarter some imports, the
quota would effectively be eased by about 250,000 tons.
    Huckaby said by simply bringing forward to the third
quarter of the year sugar imports scheduled for the September
to December period "we could get away without having to
increase the quota."
    He noted that some in the sugar industry believe an
increase in the quota is justified.
    Earlier this month, representatives of U.S. cane sugar
refiners met with U.S. Agriculture Department officials to
request a quota increase of at least 200,000 tons. The refiners
said the increase is needed because the quota is so restrictive
there could be some spot shortages of sugar in the U.S later
this year, a refiner spokesman said.
    However, the official slaid the USDA replied only that it
would consider the request.
    Following the refiners' request, representatives of the
Florida sugarcane producers met with USDA to express opposition
to any quota expansion, industry sources said.
    The statement by Huckaby, who as a representative from a
sugar growing district in Louisiana is a leading architect of
the current sugar program, indicates at least some grower
officials are concerned enough to support an easing of the
import quota, industry officials said.
    Any final decision on easing the quota must be made by the
Reagan administration's interagency sugar policy group.
    Asked about possible quota changes, A USDA official said
"As far as I know, changing the quota volume or the quota year
is not under active consideration."


.I 14593
.C
earn
.W
CALIFORNIA MICROWAVE <CMIC> TAKES 3RD QTR CHARGE.
    SUNNYVALE, Calif., March 24 - California Microwave Inc said
it will take non-recurring charges of 9.7 mln dlrs to pre-tax
earnings in the third quarter ended March 31.
    The company said earnings from operations in the second
half, ending June 30, 1987, excluding the charges, are expected
to be in the break-even range.
    In the second half of 1986 net earnings were 2,297,000
dlrs, or 29 cts per share.
    The company said the charges relate to its
telecommunications products area and three other areas.
    California Microwave previously estimated the write-downs
in the six to eight-mln-dlr range. It said it will add to that
a reserve for investment losses in Argo Communications Corp.
    Also to be included in the write-down are charges against
its advances to an Arizona-based communications electronics
firm the company has an option to acquire, it said.
    In addition, accruals are being made for costs associated
with the company's reduction in its Sunnyvale work force.
    California Microwave said the write-downs should have a
nominal cash impact, as the company already has paid for the
assets being written down.


.I 14594
.C
earn
.W
******CRS SIRRINE PLANS MAJOR RESTRUCTURING, WRITE OFF OF UP 43 MLN DLRS.
Blah blah blah.

.I 14595
.C
earn
.W
H.F. AHMANSON AND CO <AHM> QTLY DIVIDEND.
    LOS ANGELES, March 24 -
    Shr 22 cts vs 22 cts prior qtr
    Pay June one
    Record May 12


.I 14596
.C
acq
.W
BORG-WARNER <BOR> TELLS OF TALKS WITH JACOBS.
    CHICAGO, March 24 - Borg-Warner Corp said it has had
discussions with Irwin Jacobs on his interest in the
possibility of Minstar Inc <MNST>, a Jacobs controlled company,
being given access to certain non-public information about
Borg-Warner.
    In late February, an investor group headed by Jacobs
offered 44 dlrs a share, or 3.29 billion dlrs, to take over
Borg-Warner.
    Borg-Warner said it advised Jacobs that before its board
would give Minstar access to company records Minstar would have
to provide satisfactory evidence that sufficient financing was
committed to carry out whatever transaction was proposed.
    A Borg-Warner spokesperson said the discussions with Jacobs
and other Minstar officials focused on terms and conditions
under which the company would consider granting Minstar access
to the information it was seeking.
    The Borg-Warner spokesperson said the company has not been
able to reach an agreement with Minstar, and Borg-Warner has
not granted Minstar access to any records.
    There can be no assurance that there will be further
discussions with Jacobs or that any agreement will be reached,
the company added.


.I 14597
.C
trade
.W
CANADA VOWS TO FIGHT U.S. POTASH ACTION.
    By Russell Blinch, Reuters
    OTTAWA, March 24 - External Affairs Minister Joe Clark
today vowed to do everything possible to fight the U.S. action
against Canadian potash exports, but also warned against
raising the alarm too early in the dispute.
    In the latest flashpoint in Canadian-U.S. trade relations,
the U.S. International Trade Commission ruled unanimously
Monday that Canadian potash shipments valued at 270 million
U.S. dlrs last year were injuring the U.S. industry.
    "We certainly intend to do everything we can to insure that
Canadian interests are well protected," Clark told the House of
Commons in the daily question period.
    But he said the opposition parties should be careful "not
to raise false alarms too early."
    The case now goes before the U.S. Commerce Department's
trade division to determine if a duty should be imposed. Potash
producers from New Mexico, claiming unfair government
subsidies, are seeking a 43 pct tariff on Canada's shipments.
    Canada, the world's largest potash producer, exported 9.8
mln metric tonnes of potash last year, with nearly a third
going to the U.S.
    Most of the potash, used in the production of fertilizer,
comes from provincially owned mines in Saskatchewan.
    In the Commons, Liberal member Lloyd Axworthy branded the
ruling as just another "trade harrassment" from the U.S. and
criticized Clark's assurances the country's interests would be
protected.
    "We received exactly the same kind of assurances in the
softwood lumber case that was totally fumbled and bumbled,"
Axworthy said.
    Canada's Progressive Conservative government agreed to
impose a 15 pct duty on its softwood lumber exports earlier
this year to end a long and bitter bilateral trade dispute with
the U.S.
    Axworthy urged the government to present Canada's case to
world trade authorities under the General Agreement on Tariffs 
and Trade.
    But Clark maintained the potash dispute was another example
of why Canada needs to find a new way to settle bilateral
irritants in the free trade negotiations under way with the
U.S.
    "What we are seeking to do is put in place a better
system," Clark said.
    Meanwhile, Saskatchewan Trade Minister Bob Andrew expressed
confidence Canada would win its case, claiming the problem
stems from low international commodity prices and not
government subsidies.
    "The reality of the problem and the injury is caused
worldwide," he said. "It's caused by a downturn in the
commodity price for fertilizer, whether it's potash fertilizer,
nitrogen fertilizer or whatever."


.I 14598
.C
nat-gas;pet-chem;
.W
TRINTOC, UNION CARBIDE TO BUILD METHANOL PLANT.
    PORT OF SPAIN, TRINIDAD, March 24 - Trinidad and Tobago is
finalizing arrangements with Union Carbide <UK> of the United
States and Snamprogetti of Italy for the construction of a
1,500 tonnes per day methanol plant, Energy Minister Kelvin
Ramnath said.
    Ramnath said the ministry is now holding talks with Union
Carbide on the price of natural gas to be used in the plant,
which will be constructed near the Trinidad and Tobago oil
company (Trintoc) refinery at Point Fortin on the west coast.
    Snamprogetti built the first methanol refinery on trinidad
five years ago.
    Trintoc is likely to put up land, refinery plant and
machinery as equity. If negotiations go smoothly, ramnath said,
construction could begin by next january.
    The government of prime minister A.N.R. Robinson is hoping
to lue new investors to the twin-island state's petrochemical
industry, in order to make use of new findings of natural gas.


.I 14600
.C
dlr;money-fx;
.W
VOLCKER CALLS DOLLAR SLIDE ENOUGH.
    WASHINGTON, March 24 - Federal Reserve Board Chairman Paul
Volcker said that the dollar's slide in currency markets has
been enough, a Fed spokesman said.
    The spokesman confirmed that Volcker, who spoke to a group
of financial analysts, said in answer to a question about the
dollar's recent slide that "enough is enough."
    Volcker has often expressed concern about the dollar
falling too rapidly in currency markets.


.I 14602
.C
acq
.W
RB INDUSTRIES <RBI> COMPLETES STORE SALES.
    LOS ANGELES, March 24 - RB Industries Inc said it completed
the sale of its W and J SLoane Division to Laurence Crink Jr
and a group of investors.
    The definitive agreement provides for a closing on April 1,
1987. The division consists of four W and J Sloane furniture
store in Los Angeles and Orange counties.
    RB Industries also said it recently secured a five-year
8.573 pct secured 9.9-mln-dlr loan on its Irvine property from
a major institution. Proceeds will be used to retire existing
bank debt, for working capital and to retire a portion of its
outstanding 12 pct debentures.


.I 14608
.C
acq
.W
GENCORP <GY> TAKEOVER GROUP CANCELS HEARING.
    NEW YORK, March 24 - The investor group seeking to acquire
GenCorp Inc said it agreed to cancel a court hearing after
GenCorp withdrew three proposals that, if approved, would have
made it more costly and difficult to acquire the Akron,
Ohio-based company.
    Earlier today GenCorp said it will not ask shareholders to
approve an increase in the number of its outstanding shares,
the election of a staggered board of directors and the
elimination of cumulative voting.
    However, the group said it will continue to try to block
GenCorp's poison-pill provision.
    The group, a partnership of AFG Industries Inc <AFG> and
<Wagner and Brown>, was to go to court on March 27 to block
GenCorp for having the three proposals voted on by shareholders
at its annual meeting.
    GenCorp said it withdrew the proposals so that it could
focus its attention on the takeover offer.
    The takeover partnership said it has asked to meet with
GenCorp to negotiate a repeal of the company's poison pill
plan.


.I 14609
.C
acq
.W
GENCORP <GY> FIXES RIGHTS SEPARATION DATE.
    AKRON, Ohio, March 24 - Gencorp Inc said that because it is
continuing to evaluate General Acquisition Inc's tender offer
it has fixed April 3, subject to further extension, as the date
the rights to purchase preferred shares will trade separately
from the common stock as a result of the tender offer.
    This extension of the expiration date is conditioned on no
person acquiring beneficial ownership of 20 pct or more of
Gencorp's common stock prior to April 3, it said.
    Gencorp said it could distribute the rights certificates to
shareholders 10 to 30 days after the March 18 acquisition offer
was made.
    However, rather than leaving the expiration date in a
range, the board decided to set April 3 as the day it will
distribute the preferred share purchase rights.
   


.I 14611
.C
acq
.W
AMERICAN INTERNATIONAL <AIG> SELLS AFRICAN UNIT.
    NEW YORK, March 24 - American International Group Inc said
it sold its South African subsidiary, American International
Insurance Co Ltd, to Johannesburg Insurance Holdings Ltd, a
holding company owned by a consortium of shareholders led by
Rand Merchant Bank.
    Terms were not disclosed and company officials were
unavailable for comment.
    With the conclusion of the sale, American International has
entirely divested itself of its holdings in South Africa.


.I 14612
.C
earn
.W
OXFORD INDUSTRIES INC <OXM> 3RD QTR FEB 27.
    ATLANTA, March 24 -
    Shr 25 cts vs 21 cts
    Net 2.8 mln vs 2.3 mln
    Revs 135.0 mln vs 119.0 mln
    Nine months
    Shr 80 cts vs 70 cts
    Net 8.9 mln vs 7.7 mln
    Revs 407.7 mln vs 403.7 mln


.I 14614
.C
grain;corn;
.W
PORTUGAL MAY HAVE PURCHASED U.S. CORN.
    CHICAGO, March 24 - Portugal may have purchased a 30,000
tonne cargo at its tender today for up to 43,000 tonnes of
number two yellow corn (14.5 pct maximum moisture) for arrival
by April 30, shipment via Gulf ports, U.S. exporters said.


.I 14615
.C
grain;corn;
.W
TAIWAN TENDERING THURSDAY FOR U.S. CORN.
    CHICAGO, March 24 - Taiwan will tender Thursday, March 26,
for a total of 356,000 tonnes of U.S. number two yellow corn
(14.5 pct moisture) for various Sept/Dec shipments via Gulf or
Pacific Northwest ports, U.S. exporters said.


.I 14616
.C
wheat;grain;
.W
SRI LANKA TENDERING OVERNIGHT FOR WHEAT.
    CHICAGO, March 24 - Sri lanka will tender overnight for
52,500 tonnes of U.S., Canadian and/or Australian wheats for
April 8/16 shipment, under the Export Enhancement Program if
U.S. origin, U.S. exporters said.


.I 14618
.C
earn
.W
<DIGIGRAPHIC SYSTEMS CORP> 4TH QTR OPER LOSS.
    EDEN PRAIRIE, MINN., March 24 -
    Oper shr loss one ct vs loss seven cts
    Oper net loss 80,640 vs loss 787,738
    Revs 933,183 vs 3,346,627
    Avg shrs 6,122,378 vs 8,451,578
    Year
    Oper shr loss 75 cts vs loss 1.10 dlrs
    Oper net loss 5,120,206 vs loss 9,288,996
    Revs 5,846,962 vs 18,679,090
    Avg shrs 6,805,951 vs 8,387,802
    NOTE: Earnings exclude losses from discontinued operations
of 178,437 dlrs, or three cts a share vs 154,767 dlrs, or two
cts a share in the quarter and losses of 706,984 dlrs, or 10
cts a share vs 572,100 dlrs, or seven cts a share for the year
    1986 year earnings exclude gain from early extinguishment
of debt of 11,318,289 dlrs, or 1.66 dlrs a share


.I 14619
.C
acq
.W
BAYOU <BYOU> IN DEFINITIE MERGER AGREEMENT.
    HOUSTON, March 24 - Bayou Resources Inc said it reached an
definite agreement to be acquired by Patrick Petroleum Co
through a stock and cash transaction valued at six dlrs per
Bayou share.
    Bayou also reported net loss of three cts or 23,024 dlrs
for the fourth quarter compared with a net income of 10,128
dlrs or one cts a year. Revenues fell to 532,807 dlrs from
769,465 dlrs a year ago.
    For the year, Bayou reported a net loss of 14 cts or
116,793 dlrs compared to a net income of 23 cts or 203,372
dlrs. Revenues fell to 2.4 mln dlrs from 3.3 mln dlrs.


.I 14621
.C
nat-gas
.W
TRANSCONTINENTAL <TGP> FILES NEW OFFER.
    HOUSTON, March 24 - Transcontinental Gas Pipe Line Corp
said that it is not willing to accept the Federal Energy
Regulatory Commission's conditioned approval of its proposed
offer of settlement dated May 13.
    Transco said it filed a revised settlement proposal which
would permit it to become an open access transporter while
restructuring gas sales services.
    The new offer includes a gas supply inventory charge to
customers who fail to buy 60 pct of their annual contract
quantities and 35 pct of their summer contract quantities.


.I 14622
.C
earn
.W
COMPUTER IDENTICS CORP <CIDN> 4TH QTR.
    CANTON, Mass, March 24 -
    Shr loss 44 cts vs loss 20 cts
    Net loss 2.4 mln vs loss 880,000
    Revs 2.4 mln vs 2.6 mln
    Year
    Shr loss 87 cts vs loss 11 cts
    Net loss 4.3 mln vs loss 494,000
    Revs 9.0 mln vs 12.0 mln
    NOTE:1986 includes restructuring charges of 2.1 mln dlrs
and loss of foreign affiliates of 2.0 mln dlrs. 1985 includes
loss from foreign affiliates of 173,000 dlrs.


.I 14623
.C
acq
.W
FLEET TO ACQUIRE ASSETS OF MARK IV <IV> UNIT.
    ST. CATHARINES, Ontario, March 24 - <Fleet Aerospace Corp>
said it agreed in principle to acquire the assets and
operations of the Engineered Magnetics division of Gulton
Industries Inc, a unit of Mark IV Industries Inc.
    Terms were undisclosed.
    Los Angeles-based Engineered Magnetics designs and produces
custom power conversion systems mainly for use in the defense
and aerospace industries. Its revenues for the year ended
February 28 totaled about 20 mln Canadian dlrs.


.I 14624
.C
earn
.W
MIKRON INSTRUMENT CO <MIKR> 1ST QTR JAN 31.
    WYCKOFF, N.J., March 24 -
    Shr three cts vs four cts
    Net 30,969 vs 18,230
    Revs 956,971 vs 702,994


.I 14625
.C
gold
.W
GOLDEN NORTH HAS ENCOURAGING DRILL RESULTS.
    VANCOUVER, British Columbia, March 24 - Golden North
Resource Corp said said surface and underground drilling on the
Canty project and Mascot fraction at its Nickel Plate Mountain
property in British Columbia returned encouraging gold assays.
    It said one Canty hole encountered several mineralized
intervals including 11 feet grading 0.342 ounce gold a short
ton from 86 to 97 feet and 17 feet grading 0.756 ounce gold ton
from 170.5 feet to 187.5 feet.
    A Mascot fraction hole returned assays including 0.190
ounce gold ton over seven feet between 57 and 64 feet, it said.


.I 14628
.C
money-supply
.W
AUSTN FEB ANNUAL M3 MONEY SUPPLY RISES 11.2 PCT.
    Sydney, March 25 - The annual growth of Australia's m3
money supply rose by 11.2 pct in the year ended February
compared with January's 10.7 pct, the Reserve Bank said.
    This was down from 14.0 pct in February last year.
    In February m3 rose by 0.6 pct compared with 0.8 in January
and a February 1986 rise of 0.1 pct.
 More

.I 14629
.C
acq
.W
PS GROUP <PSG>, USAIR <U> MOVE UP DEADLINE.
    SAN DIEGO, Calif., March 24 - PS Group Inc said it and
USAir Group agreed to move up the completion date of USAir's
acquisition of Pacific Southwest Airlines to April 30 from
September 30 originally.
    If the acquisition does not take place by April 30, either
party may terminate the agreement, the company said.
    The deadline has been moved up because the Department of
Transportation and PS Group shareholders have already approved
the transaction, the company said.
    A Teamsters Union agreement to certain labor contract
conditions remains to be resolved under the pact.


.I 14631
.C
acq
.W
MERGERS, PUBLIC OFFERS SEEN AMONG CAR DEALERS.
    By Scott Williams, Reuters
    Detroit, March 24 - Automobile dealerships have become
large, multi-store operations, and the largest sell more than 1
billion dlrs a year worth of vehicles a year.
    Around the auto industry there is talk of mergers and
buyouts among dealerships, and there are rumors that the
largest are considering offering shares to the public, analysts
say.
    Retail car sales "are at a point of transition. There's not
much that's off the table in terms of creative thinking" about
ways to sell cars, says David Cole, analyst with the University
of Michigan's Transportation Research Institute.
    The retail car market is "much more freeform now" than it
was in 1956, the year things began to change, says Detroit
analyst Arvid Jauppi of Arvid Jauppi and Associates.
    Thirty years ago, in 1956, the situation was different.
Dealerships sold one kind of car--a "Chevy" or a Ford or a
Studebaker. The average dealer had 17 employees and sold
738,000 dlrs worth of vehicles, according to the National
Automobile Dealers Association.
    That year a tiny car from overseas--Germany's Volkswagen
Beatle--began to gain popularity. The "Bug" caused "a
rebellion" among dealers, who demanded greater freedom from
restrictions placed on them by the major American automakers,
says Jauppi.
    One of the most visible changes in retail car sales has
been in the size of dealerships, auto analysts say. Last year,
the average dealership had 11.2 mln dlrs in sales--a 15-fold
increase from 1956--and employed 34 workers.
    "I had one of these guys tell me he makes six, seven mln
dlrs a year and didn't know what to do with all his money,"
says Cole.
    "There's a whole lot more rich guys who sell cars than that
make cars," he says.
    With the increase in size, large dealers have been buying
up other dealerships, and auto analysts see few signs the trend
will let up.
    Donald Keithley, vice president, dealer services, for J.D.
Power, a California-based market research firm, says that, by
1990, 12,000 people will own dealerships compared to 16,800
principal owners today.
    Many dealers are experimenting with owning several
franchises, some of which might compete against each other. "It
used to be a Chevrolet dealer was a Chevrolet dealer. Now a
Chevrolet dealer might handle several lines," Jauppi says.
    As dealers get bigger, industry officials are talking about
the possibility that some of them might become publicly-owned
or open international operations.
    Offering shares to the public is an option large dealers,
"are obviously thinking of very seriously," says Cole.
    Although some say the franchise system might get in the way
of a public offering, Jauppi says there are few obstacles to
trading in car dealer shares.
    "Dealers are large enough now to go public. The only thing
the manufacturer cares about is that the dealer sells those
cars. It could happen any time," Jauppi says.
    "If you look at the whole merger mania, and look at the
scale some of these dealers, it's going to be very hard to
resist taking them public," said another analyst.
    And Jauppi says that dealerships can be expected to become
international.
    "We're going to have international dealers--dealer networks
that are worldwide," he says. U.S. dealers will be attracted
particularly to Europe, where the market will expand faster
than the U.S., he says.
    "It's not totally off the wall," says Cole.


.I 14632
.C
earn
.W
COMPREHENSIVE CARE CORP <CMPH> 3RD QTR NET.
    IRVINE, Calif., March 24 - Qtr ended Feb 28
    Shr 17 cts vs 22 cts
    Net 2,041,000 vs 3,329,000
    Revs 46.6 mln vs 48.9 mln
    Nine mths
    Shr 65 cts vs 82 cts
    Net 9,290,000 vs 12.7 mln
    Revs 142.7 mln vs 139.8 mln


.I 14633
.C
earn;acq;
.W
CHAPMAN <CHPN> IN RESTRUCTURING.
    DALLAS, March 24 - Chapman Energy INc said it is launching
a major restructuring which, if not approved, it will have no
alternative but to seek protection under Chapter 11.
    Under the plan, Chapman will exchange securities and cash
for all outstanding 12 pct senior subordinated debentures due
2000 and will sell a controlling interest to Troon Partners
Ltd.
   The agreement with Troon requires Troon to advance 6.5 mln
dlrs partially secured by a first mortgage lien on the
company's interest in its natural gas pipeline partnership and
Troon to tender 100,000 principal amount of debentures to
Chapman.
    Proceeds of the loan will be used for the cash portion of
the restructuring. Troon will acquire a majority stock interest
and control of the board.
    In addition, Chapman and Troon will establish a 10 mln dlrs
acquisition joint ventures, it said.
    The plan also contemplates establishing a restructured loan
providing for one master credit agreement having an aggregate
balance of 22.4 mln dlrs.
    The plan also contemplates the recapitalization of
preferred stock whereby each share will be converted into three
shares of common stock.
    Chapman also said it also plans to negotiate settelment and
discharge of a substantial portion of its accounts payable and
settlement of certain litigation.
    If approved by various creditors and shareholders, the
company expects the plan to be completed by May 29.
    Chapman also repoted a loss of 43.4 mln dlrs for the year,
including asset writedowns of 35.5 mln dlrs, compared to
December 31, compared to a net income of 177,243 in 1985.
    The 1986 loss resulted in shareholders' deficiency of 15
mln dlrs compared to shareholder's equity of 28.9 mln last
year.
    Total assets decreased to 35.6 mln dlrs from 81.8 mln dlrs.


.I 14634
.C
earn
.W
VESTAR INC <VSTR> YEAR LOSS.
    PASADENA, Calif., March 24 -
    Shr loss 98 cts vs loss 1.11 dlrs
    Net loss 3,863,000 vs loss 3,483,000
    Revs 1,081,000 vs 799,000
    Note: 4th qtr data not given.


.I 14636
.C
earn
.W
<STERLING BANCORP> YEAR NET.
    LOS ANGELES, March 24 -
    Shr 1.13 dlrs vs 87 cts
    Net 1,064,489 ca 780,712
    Assets 106.8 mln vs 102.5 mln
    Note: 4th qtr data not given.


.I 14637
.C
earn
.W
FIRST NEW HAMPSHIRE BANKS INC DIV.
    MANCHESTER, N.H, March 24 -
    Qtly div 15 cts vs 15 cts prior
    Payable May one
    Record April 10


.I 14638
.C
earn
.W
HOUSE OF FABRICS <HF> QUARTERLY DIVIDEND.
    SHERMAN OAKS, Calif., March 24 -
    Qtly div 12 cts vs 12 cts
    Pay July 1
    Record June 12


.I 14639
.C
dlr;money-fx;
.W
******Bank of Japan bought 200 to 300 mln dlrs this morning, dealers said.
Blah blah blah.

.I 14641
.C
dlr;money-fx;
.W
JAPAN BUYS MODEST AMOUNT OF DOLLARS, DEALERS SAY.
    TOKYO, March 25 - The Bank of Japan bought a modest amount
of dollars this morning, possibly around 200 to 300 mln,
dealers said.
    One dealer said the central bank bought about 200 mln dlrs
through brokers and the rest through banks. The buying began
when the dollar was at about 149.60 yen, and helped drive the
U.S. Currency up to around 150, he said.
    Another said the central bank seemed to be trying to push
the dollar up above 150 yen. But heavy selling at around that
level quickly pushed the dollar back down towards 149 yen,
dealers said.


.I 14645
.C
sugar
.W
JAPAN'S 1986/87 SUGAR CANE OUTPUT SEEN FALLING.
    TOKYO, March 25 - An Agriculture Ministry survey has
estimated the nation's 1986/87 crop sugar cane output at 2.14
mln tonnes, down from 2.62 mln a year earlier.
    Ministry officials said the decline was due to bad weather
and a reduction in the land under sugar cane this season, which
totals 34,800 hectares, down from 35,700 in 1985/86, they said.
    Harvesting stretches from December 1986 to April 1987
    Japan's final output will be announced at the beginning of
June, they said.


.I 14648
.C
dlr;money-fx;
.W
******Bank of Japan keeps intervening to hold dollar above 149 yen, brokers.
Blah blah blah.

.I 14649
.C
dlr;money-fx;
.W
JAPAN INTERVENING TO KEEP DOLLAR UP, BROKERS.
    TOKYO, Mar 25 - The Bank of Japan is continuing to
intervene in the Tokyo market, buying small amounts of dollars
to hold the unit above 149 yen, brokers said.
    They said the Bank is coming in when the dollar is around
149.05/10 yen, the same levels as New York's close yesterday
and the midday close in Tokyo today.
    Dealers said the Bank of Japan is intervening in the market
through both banks and brokers this afternoon.
    The central bank is checking selling orders through banks
and placing matching buy orders, they said.
    The central bank started to intervene shortly after the
market opened here in the afternoon, the dealers said.


.I 14651
.C
earn
.W
WEEKS PETROLEUM LTD <WPMA.MEL> CALENDAR 1986.
    MELBOURNE, March 25 -
    Shr 16.7 cents vs 29.4
    Final div nil vs same making nil vs same
    Pre-tax profit 21.31 mln dlrs vs 26.42 mln
    Net 10.84 mln vs 19.15 mln
    Turnover 17.17 mln vs 25.94 mln
    Other income 101.99 mln vs 125.18 mln
    Shrs 65.13 mln vs same.
    NOTE - Net is after tax 10.47 mln vs 7.27 mln, interest
2.58 mln vs 9.55 mln, depreciation 5.06 mln vs 7.61 mln and
minorities nil vs same. Other income: 72.39 mln from sale of
investments (103.04 mln 1985), interest 25.75 mln (21.49 mln),
and dividends 1.64 mln (nil). Co is 93.7 pct owned by <Bell
Resources Ltd>.
    Note - All figures in U.S. Dollars as the company is
registered in Bermuda.


.I 14652
.C
money-fx
.W
******Current exchange rates almost within levels agreed by major nations - Sumita.
Blah blah blah.

.I 14653
.C
money-fx
.W
******Sumita says major nations cooperated to stabilise currencies.
Blah blah blah.

.I 14654
.C
reserves
.W
THAILAND'S FOREIGN RESERVES FALL IN FEBRUARY.
    BANGKOK, March 25 - Thailand's foreign reserves of gold,
special drawing rights and convertible currencies fell to 3.86
billion dlrs at end-February from 3.95 billion the previous
month, but were above the 3.08 billion held at the same time
last year, the Bank of Thailand said.
    It said the reserves were equal to about five months' worth
of imports.


.I 14655
.C
money-fx
.W
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA.
    TOKYO, March 25 - Bank of Japan governor Satoshi Sumita
said that current exchange rates are almost within the levels
agreed to by six major nations last month in Paris.
    Asked whether a dollar/yen rate of 148 or 149 reflected
economic fundamentals, he said current rates almost reflect
fundamentals.
    Sumita told reporters major nations have cooperated to
bring about currency stability in line with the Paris
agreement, which stipulated that they would closely cooperate
to that end. He repeated the central bank will intervene if
necessary, adding he did not think a dollar free-fall was
likely.
    But Sumita said he could not say exactly what currency
levels would be considered in line with underlying economic
fundamentals.
    In Paris on February 22, Britain, Canada, France, Japan,
the U.S. And West Germany agreed to cooperate to hold
currencies around their then current levels.
    Sumita said he could not find any specific reasons behind
the fall of the dollar to a record low against the yen
yesterday. But he said the market rushed to sell dollars as it
nervously reacted to statements abroad and to developments
surrounding trade tensions.
    U.S. Treasury Secretary James Baker said over the weekend
that the Paris pact did not encompass fixed tragets for the
dollar. U.S. Trade Representative Clayton Yeutter called
U.S/Japan relations on certain key trade issues very strained.
    The market reacted nervously because the dollar has been
moving narrowly against the yen since mid-January, Sumita said.
He added he does not expect the yen/dollar exchange rate to
remain unstable because the market is concerned about a sharp
rise of the yen.
    The Bank of Japan will keep a close watch on exchange rates
in line with the Paris accord, he added.


.I 14656
.C
trade
.W
N.Z. TRADE SURPLUS 119.1 MLN DLRS IN FEBRUARY.
    WELLINGTON, March 25 - Preliminary trade figures for
February show an excess of exports over imports of 119.1 mln
N.Z. Dlrs, a Statistics Department statement said.
    This compares with a 3.3 mln dlr deficit (revised from 1.7
mln) in January and a 36.1 mln dlr deficit in February 1986.
    Exports rose to 998.4 mln dlrs, from 889.2 mln (revised
from 889.5) in January and 903.2 in February 1986. Imports
dropped to an estimated 879.4 mln dlrs from 892.5 (revised from
891.2) in January and 939.3 in February 1986. The deficit for
the eight months to the end of February was 15.3 mln dlrs, as
against 1.057 billion dlrs in the same period a year ago.


.I 14658
.C
interest
.W
******Sumita says Bank of Japan has no intention of lowering its discount rate.
Blah blah blah.

.I 14659
.C
money-fx;interest;
.W
JAPAN DOES NOT INTEND TO CUT DISCOUNT RATE-SUMITA.
    TOKYO, March 25 - Bank of Japan governor Satoshi Sumita
said the central bank has no intention of cutting its discount
rate again as a way of preventing the yen's rise.
    He told a press conference that the growth of Japanese
money supply remains high.
    The bank will have to watch closely various developments
resulting from its already eased monetary stance, such as the
sharp rise in real estate and stock prices, he said.
    Although the yen's rise will have a greater deflationary
impact on the economy, the economy is not likely to slow down
much further, Sumita said.
    "I don't think we should change our economic outlook at the
moment," Sumita said.
    Sumita has said in the past that he expects the economy to
show a gradual upturn in the second half of the year.
    The governor said the six major industrial nations are
expected to review last month's pact on currency stability when
they meet next in April.
    Dealers said they expect the six - Britain, Canada, France,
Japan, the U.S. Amd West Germany - to meet just before the
IMF/World Bank interim committee meeting in Washington starting
on April 9.


.I 14660
.C
earn
.W
JARDINE MATHESON PROFITS SEEN UP SHARPLY IN 1986.
    By Joshua So, Reuters
    HONG KONG, March 25 - A strong performance by its retail
businesses and affiliates will enable Jardine Matheson Holdings
Ltd <JARD.HKG> to report on Friday a big leap in net profit in
1986, stock analysts said.
    They told Reuters they expect the firm to show earnings of
between 420 mln and 450 mln H.K. Dlrs last year against 157 mln
in 1985.
    The analysts also said they expect Jardine Matheson to pay
a total dividend of 15 to 20 cents a share against 10 cents a
share in 1985.
    James Capel (Far East) Ltd estimates Jardine Matheson's
1986 profits at 450 mln dlrs and attributes most of the income
to retail sales.
    Analysts said the group's 7-Eleven retail stores and its
franchises, among them Canon cameras, Christian Dior luxury
goods and Mercedes Benz cars, produced a strong cash flow.
    Alan Hargreaves of Hoare Govett Asia Ltd also put Jardine
Matheson's 1986 net profits at 450 mln dlrs and said he
estimates pre-tax earnings from retail operations at about 465
mln dlrs against 339 mln in 1985.
    But Hargreaves said Jardine Matheson's earnings from its 35
pct stake in Hong Kong Land Co Ltd <HKLD.HKG> will fall to
about 230 mln dlrs from 281 mln dlrs in 1985.
    The reduced contribution reflects the spin-off from Hong
Kong Land of <Dairy Farm International Ltd> last September.
    Jardine gained a direct holding of 35 pct of Dairy Farm as
a result of the spin-off. Analysts said Jardine will book
revenues from its Dairy Farm stake for the final months of the
year as part of its retail business, which will increase its
overall retail income figures.
    Analysts said Jardine Matheson will also enjoy sharply
increased revenues from financial services, mainly its 50 pct
share of <Jardine Fleming Holdings Ltd>.
    Jardine Fleming yesterday reported record profits for 1986
of 209.5 mln dlrs against 104.7 mln in 1985.
    Analysts said Jardine Matheson made net interest payments
of about 200 mln dlrs last year, slightly below the 213 mln
dlrs of 1985, while the company's term debt remained at about
the 1985 level of 2.7 billion dlrs.
    But Jardine was also subject to increased taxes of 340 mln
dlrs last year against 292 mln in 1985, they said.
    Jardine Matheson is undergoing a series of reorganisations
that will in effect turn it into a holding company for its
diverse interests.
    It previously announced a plan to sell its stakes in both
Hong Kong Land and Dairy Farm to newly created <Jardine
Strategic Holdings Ltd> in which it has a 41 pct interest.
    A company statement issued last month said the firm will
use the proceeds to repay all debt, leaving it with an
additional 500 mln dlrs in cash on hand.
    Though Jardine Matheson will be deprived of a direct stake
in the high-yield Hong Kong Land and Dairy Farm units, it is
likely to develop its own business, analysts said.
    "The future of the stock will depend on the firm's ability
to creatively structure some new acquisitions," said Hargreaves
of Hoare Govett.
    He noted the firm has suggested financial services as a key
sector, and he said it may add some insurance firms to its
existing business.


.I 14663
.C
earn
.W
CHINA'S FIRST JOINT VENTURE BANK REPORTS PROFIT.
    PEKING, March 25 - China's first joint venture bank, Xiamen
International Bank (XIB), reported a group net profit of about
14 mln Hong Kong dlrs in 1986, the bank's first full year of
operation.
    General manager Liu Shuxun declined to give a 1987 profit
forecast, saying targets were under study.
    Assistant general manager Wang Hongshan said the group's
outstanding loans at end-1986 totalled 620 mln Hong Kong dlrs,
up from 530 mln at end-1985. Deposits and interbank borrowings
rose to 680 mln dlrs from 550 mln, he told Reuters.
    Liu said most of the group's profit came from the parent
company rather than its two wholly-owned subsidiaries <Xiamen
International Finance Co Ltd> in Hong Kong and <Luso
International Bank Ltd> in Macao.
    The joint venture bank began operating in September 1985
but did not officially open until March 1986.
    Liu said the share in the joint venture of the foreign
partner, Hong Kong-listed <Panin Holdings Ltd>, had been cut
last year to 49 pct from 60 pct. This was done because foreign
banks felt the XIB's reputation would be improved if the three
Chinese partners collectively held a majority stake, he said.
    Liu said news reports about problems concerning Panin were
unfounded, but he did not elaborate. Panin Holdings reported a
loss of 1.99 mln Hong Kong dlrs in 1986 after a net profit of
268,000 dlrs in 1985.
    The Chinese partners are Industrial and Commercial Bank of
China, Fujian branch, whose share rose to 23.5 pct from 15,
Fujian Investment and Enterprise Corporation 17.5 pct (15) and
Xiamen Construction and Development Corporation 10 pct (10).
    One foreign banker said Xiamen International Bank faced the
same problems as foreign bank branches in trying to compete on
unequal terms with state-owned banks.
    The foreign banking market in Xiamen is thin and almost
saturated, he added.
    Officials of the joint venture bank said they benefitted
from contacts made through its three Chinese partners. But the
foreign banker, who asked not to be named, said it faced
internal competition from the Industrial and Commercial Bank.
    Apart from Xiamen International Bank and the International
Agricultural Development Bank planned by the World Bank and the
state-owned Agricultural Bank of China, Xiamen has eight
foreign bank branches or representative offices, mostly of Hong
Kong or overseas Chinese banks.


.I 14664
.C
bop;trade;
.W
BANGLADESH'S PAYMENTS DEFICIT NARROWS IN OCTOBER.
    DHAKA, March 25 - Bangladesh recorded an overall balance of
payments deficit of 8.3 mln U.S. Dlrs in October against a
10.33 mln deficit in September and a 6.67 mln surplus in
October 1985, Central Bank officials said.
    The country's current account deficit narrowed to 10.69 mln
dlrs in October from 79 mln in September and 11.75 mln in
October 1985.
    The October trade deficit narrowed to 36.36 mln dlrs from
160 mln in September and 83.79 mln in October 1985.


.I 14667
.C
iron-steel
.W
TWO JAPANESE STEELMAKERS TO CUT CAPITAL SPENDING.
    TOKYO, March 25 - Nippon Steel Corp <NSTC.TOK> said it will
cut its capital spending by 36.4 pct to 105 billion yen in the
year starting April 1 from a year earlier due to the
postponement of furnace improvements.
    <Nisshin Steel Co Ltd> said it will spend 10.7 billion yen
in 1987/88 for rationalisation and facility improvements, down
from 32.1 billion a year earlier, after completion of large
construction projects in 1986/87.
    But capital spending by Nippon Kokan K.K. <NKKT.TOK> to
improve and increase its production facilities will rise to
94.90 billion yen from 64 billion, the company said.


.I 14668
.C
acq
.W
NISSAN AFFILIATE TO ACQUIRE U.S. AUTOPARTS MAKER.
    TOKYO, March 25 - <Kokusan Kinzoku Kogyo Co Ltd> (KKK), a
Japanese autoparts maker owned 25 pct by Nissan Motor Co Ltd
<NSAN.T>, has exchanged a memorandum to acquire over 50 pct of
U.S. Autoparts firm <Master-Cast Co> to avoid losses on U.S.
Sales caused by the yen's rise against the dollar, a KKK
spokesman said.
    The final agreement should be signed this year when KKK
forms the new company <Alfa K Technology>, he said.
    The new firm should supply all the U.S. Major car makers,
including Ford Motor Co <F>, General Motor Corp <GM> and
Chrysler Corp <C>, he said.


.I 14670
.C
money-fx;yen;
.W
YEN MAY RISE TO 140 TO THE DOLLAR, NIKKEIREN SAYS.
    TOKYO, March 25 - The yen could rise to 140 yen to the
dollar, a leading Japanese businessman said.
    Bumpei Otsuki, president of the influential Japan
Federation of Employers' Associations, (Nikkeiren), told
reporters: "The yen might rise as far as 140 (to the dollar).
The U.S. Economy is not good, and as long as the U.S. Economy
is not good, the U.S. Will put various pressures (on Japan)."
    "The yen's level depends on the condition of the U.S.
Economy rather than Japan's economy, and as long as the
American situation is bad, the yen will continue to rise," he
said.
    To cope with the negative impact of the strong yen,
Japanese enterprises must strive to cut costs by all means,
including holding down wages as much as possible, Otsuki said.
    He rejected recent calls from some government quarters for
wage increases this year as a means of raising private
consumption and thus boosting domestic demand.
    "We have to keep wages as low as possible," he said.
    He also said the yen's large and rapid rise is depressing
the outlook for the Japanese economy, noting that in addition
to hurting exporters it is also damaging domestic market
manufacturers through cheap imports.
    Parts of the service sector are also threatened, Otsuki
said.
    Tertiary industries provide services to manufacturers and a
downturn in manufacturing profits will adversely affect service
industries, he said.
    It is also doubtful whether the tertiary sector can fully
employ those put out of work in the manufacturing sector, he
said.
    Profits of service sector companies are likely to fall in
the business year ending in March 1988, leading to a possible
recession in the Japanese economy, he said.
    Otsuki said economic growth is unlikely to pick up beyond
levels experienced in 1986.
    The government's Economic Planning Agency said last week
the economy grew at 2.5 pct in 1986, the worst performance
since 1974 when the economy shrank 1.4 pct due to the first oil
price crisis.
    In order to stimulate domestic demand and boost the
economy, tax reforms aimed at bringing down the cost of land
and reforming the nation's housing stock are needed, along with
steps to bring down the high cost of commodities, he said.


.I 14673
.C
acq
.W
****** BRUSSELS - Ferruzzi says it will pay 630 mln dlrs to CPC International for European mills.
Blah blah blah.

.I 14674
.C
rubber;coffee;tea;
.W
VIETNAM TO RESETTLE 300,000 ON STATE FARMS IN 1987.
    BANGKOK, March 25 - Vietnam will resettle 300,000 people on
state farms known as new economic zones in 1987, to create jobs
and grow more high-value export crops, the communist party
newspaper Nhan Dan said.
    Yesterday's edition, received here today, said Vietnam
would invest one billion dong, including the costs of
relocation, in 272 new economic zones. About one third of that
sum would be spent on export crops such as coffee, tea, rubber
and pepper in the Central Highlands, it said.
    Since 1975, Vietnam has resettled about three million
people from cities and crowded river deltas to the zones.


.I 14676
.C
crude
.W
MADAGASCAR EXTENDS AMOCO OIL EXPLORATION AGREEMENT.
    ANTANANARIVO, March 25 - Madagascar extended its oil
exploration agreement with the U.S. Firm Amoco Corp <AN> for 17
months to allow for further studies of the Morondava basin on
the southwest coast, a government statement said.
    It said the existing five-year agreement, due to expire
this July 24, was extended until the end of 1988 to allow for
additional geological and geophysical studies.
    Amoco has so far laid 7,100 km of seismic lines and sunk
five exploration wells in the Morondava basin. It may drill a
further three wells before the end of the extended exploration
period, the statement said.
    Madagascar has signed oil exploration agreements with four
foreign oil companies since 1981. But despite promising
indications of large reserves, no commercial production plans
have yet been announced.
    The foreign firms - Amoco, Occidental Petroleum Corp <OXY>,
Mobil Corp <MOB> and a unit of <Ente Nazionale Idrocarburi> -
are working in partnership with the National Military Office
for Strategic Industries (OMNIS).
    Roland Ratsimandresy, the director general of OMNIS, said
at a ceremenony to sign the extension of the Amoco agreement
that his department would intensify oil exploration with its
existing partners and would soon offer a new round of
exploration licences.


.I 14677
.C
acq
.W
FERRUZZI DEAL WITH CPC WORTH 630 MLN DLRS.
    BRUSSELS, March 25 - The Ferruzzi Group's holding company
Agricola Finanziara SpA will pay 630 mln dlrs for the European
corn wet milling business of CPC International Inc under the
agreement reached in principle between the two companies, a
statement by Ferruzzi released by its Brussels office said.
    When CPC announced the agreement yesterday in New York, it
said only that the price would be in excess of 600 mln dlrs.
    Ferruzzi said the deal is subject to agreement on several
clauses of the contract and needs government authorisations.
    It said the deal would involve 13 starch factories
employing about 5,000 people in eight European Community
countries plus facilities and commercial operations in other EC
states.
    The factories have a capacity to produce the equivalent of
1.6 mln tonnes of starch in starch and by-products a year, or
about one third of EC production, from about 2.7 mln tonnes of
cereals.
    Ferruzzi said the acquisition of these assets would extend
its presence in the European agro-industrial industry both
geographically and in terms of products.
    It said it is already the principal EC producer of sugar
and of soya oil and cake, and the major cereal trader.
    It noted that EC output of isoglucose is subject to maximum
quotas, of which CPC currently holds a 25 pct share, and said
it foresaw an increase in other industrial uses of starch in
the future, notably in the production of ethanol for fuel.
    Raul Gardini, president of the Ferruzzi Group, said the
present management of the CPC milling business will be asked to
remain in their posts.


.I 14679
.C
earn
.W
SWIRE PACIFIC LTD <SWPC.HKG> YEAR 1986.
    HONG KONG, March 25 -
    Shr "A" 138.9 H.K. Cents vs 97.4 (adjusted)
    Shr "B" 27.8 cents vs 19.5
    Final div "A" 44 cents vs 32.3, making 62 vs 47 (adjusted)
    Final div "B" 8.8 cents vs 6.5, making 12.4 vs 9.4
    Net 1.78 billion dlrs vs 1.23 billion
    Turnover 16.6 billion vs 13.7 billion
    Note - Net profits excluded extraordinary gains of 1.38
billion dlrs vs 59.1 mln. The non-recurrent earnings mainly
derived from the firm's sale of a 15.75 pct stake in Cathay
Pacific Airways Ltd <CAPH.HKG> in April.
    Note - Earnings per share and dividends have been adjusted
for the firm's two-for-one bonus issue made in April.
    Note - Bonus issue one-for-five for both "A" and "B" shares
against two-for-one.
    Note - Dividends payable June 2, books close April 16 to
24.
    Note - Net asset value per "A" share 6.94 dlrs vs 4.81 and
per "B" share 1.39 dlrs vs 0.96.


.I 14680
.C
earn
.W
******BAT Industries 1986 pretax profit 1.39 billion stg vs 1.17 billion.
Blah blah blah.

.I 14681
.C
earn
.W
BAT INDUSTRIES PLC <BTI.L> 1986 YEAR.
    LONDON, March 25 -
    Shr 53.51p vs 45.72p
    Div 8.8p vs 7.35p making 14.3p vs 12.1p
    Turnover 19.17 billion stg vs 17.05 billion
    Operating profit 1.48 billion vs 1.29 billion
    Pretax profit 1.39 billion vs 1.17 billion
    Tax 524 mln vs 430 mln
    NOTE - The company said shareholders would be given the
option of receiving dividend in cash, ordinary shares or
combination of the two.
    Operating profit includes -
    Commercial activities 1.08 billion vs 988 mln
    Financial services 263 mln vs 135 mln
    Share of associated companies 139 mln vs 163 mln
    Investment income 150 mln vs 166 mln
    Interest paid 238 mln vs 286 mln
    Minorities 76 mln vs 63 mln
    Extraordinary credit 75 mln vs 34 mln debit
    Transfer to revaluation reserve 85 mln vs 106 mln
    Profit attributable 793 mln vs 673 mln
    Required inflation retention 77 mln vs 147 mln
    Trading profit 1.51 billion vs 1.29 billion
    Trading profit includes -
    Tobacco 764 mln vs 738 mln
    Retailing 211 mln vs 186 mln
    Paper 217 mln vs 168 mln
    Financial services 282 mln vs 135 mln


.I 14682
.C
earn
.W
SWIRE PLANS BONUS ISSUE ON HIGHER 1986 PROFITS.
    HONG KONG, March 25 - Swire Pacific Ltd <SWPC.HKG> said it
plans for a one-for-five bonus issue for both its "A" and "B"
shares following an earlier report of a 44.7 pct jump in 1986
net profits to 1.78 billion H.K. Dlrs.
    The company also announced final dividends of 44 cents per
"A" share and 8.8 cents per "B" share against 32.3 and 6.5 cents a
year ago.
    It recorded extraordinary gains of 1.38 billion dlrs which
mainly derived from the sale in April of a 15.75 pct stake in
Cathay Pacific Airways Ltd <CAPH.HKG> in line with the
floatation of the airline.


.I 14683
.C
dlr;money-fx;
.W
******Japan Trade Ministry asks trade houses, exporters to reduce dlr sales, sources.
Blah blah blah.

.I 14684
.C
sugar
.W
SRI LANKAN GOVERNMENT TO STOP IMPORTING SUGAR.
    COLOMBO, March 25 - The Food Department will no longer
import sugar from April 1, senior officials of the Food and
Cooperatives Ministry and the Department told Reuters.
    They said the decision was taken after the Sugar Importers
Association asked that the sugar trade be further liberalised.
    "The Food Department will cease trading in sugar and will no
longer hold a buffer stock," a senior official said.
    He said the government has finalised an agreement with
E.D.F.Man (Sugar) Ltd under which E.D.F.Man will hold a buffer
stock on the government's behalf of 20,000 tonnes, against the
45,000 tonne buffer stock usually held by the Department.
    Officials said the size of the buffer stock has been
reduced because the private sector will hold its own stocks.
    The agreement with E.D.F. Man includes details such as
trigger pricing mechanisms, they said.
    Four months ago the Department allowed the private sector
to import sugar without government clearance. The Department
and the private sector each imported around 115,000 tonnes of
sugar last year, when national consumption was 280,000 tonnes.
    An Importers Association official said that "even if the
Department no longer imports sugar, we would not necessarily
buy more."
    This is because the Association would still have to compete
with the Cooperatives Wholesale Establishment (CWE), he said.
    The CWE is a semi-government body and the official said
arrangements are being made for state cooperatives and holders
of food subsidy stamps to draw their sugar from it, starting
April 1.
    Ministry officials said the CWE can either import sugar or
buy it from a local bonded warehousing scheme run by E.D.F. For
the past two years.


.I 14685
.C
money-fx;interest;
.W
NEW DUTCH SPECIAL ADVANCES TOTAL 4.2 BILLION.
    AMSTERDAM, March 25 - The Dutch Central Bank said it
allocated 4.183 billion guilders at tender for the new 5.3 pct,
nine-day special advances.
    Bids were fully met for the first 200 mln guilders and for
40 pct above.
    The new advances for the period March 25 to April 4,
replace current 5.3 pct, five day advances totalling 4.003
billion guilders which expire today.
    Money brokers said yesterday they expected the Bank to
allocate about 3.5 billion guilders.


.I 14686
.C
cpi
.W
DANISH FEBRUARY CONSUMER PRICES FALL 0.1 PCT.
    COPENHAGEN, March 25 - Consumer prices fell 0.1 pct in
February, after a rise of 0.2 pct in January and no change in
February 1986, the National Statistics Office said.
    The index, base 1980, fell to 154.5 in February from 154.6
in January, against 147.4 in February 1986, giving a
year-on-year increase of 4.8 pct.


.I 14687
.C
dlr;money-fx;
.W
JAPAN ASKS TRADERS, EXPORTERS TO CUT DOLLAR SALES.
    TOKYO, March 25 - The Ministry of International Trade and
Industry (MITI) has asked about 30 Japanese trading houses and
exporters to refrain from excessive dollar selling, trading
house officials said.
    The officials told Reuters MITI asked them to moderate
their foreign exchange trading because the excessive rise in
the yen will have unfavourable effects on the economy. It made
the request by telephone.
    A MITI official said the ministry has conducted a survey of
foreign exchange trading by trade houses and exporters. But he
said it was not aimed at moderating dollar selling.
    The trading house officials said MITI had asked them to
undertake foreign exchange transactions with due consideration
to the adverse effects excessive exchange rate movements would
have on the economy.
    The MITI official said MITI undertakes such surveys when
exchange rates fluctuate widely. A similiar survey was made
when the currency fell to the previous record low of 149.98 on
January 19. It hit a new record low of 148.20 yen yesterday.
    He said the survey showed currency transactions by trade
houses and exporters contributed little to the dollar fall.


.I 14691
.C
money-fx
.W
MIDDLE EAST CURRENCY MARKET SEES KEY CHANGES.
    By Stephen Jukes, Reuters
    BAHRAIN, March 25 - Middle East currency dealers meet in
Abu Dhabi this weekend at a time of fundamental change in their
business, which has seen a growing volume of trade shift from
the Arab world to London.
    The 14th congress of the Inter-Arab Cambiste Association
also comes at a time when the prospect of a unified Gulf
currency system is more real that at any time this decade.
    Foreign exchange traders and bank treasurers said these
issues, and the slide of the Lebanese pound, can be expected to
be major talking points.
    About 250 traders and treasurers from some 115 banks --
including some in London and other major non-Arab financial
centres -- are expected to attend the conference which begins
on on Saturday.
    Bankers said it is hard to avoid the impression that a
growing proportion of transactions in the Saudi riyal market,
by far the largest in the region, is being carried out in
London.
    The market had been dominated by Saudi Arabia's 11 banks,
foreign exchange houses in the Kingdom and offshore banks in
Bahrain. But bankers said more and more Saudi and Bahrain-based
banks are boosting their treasury operations in London.
    As recession hit the Middle East and the need for trade
finance in the region declined, many offshore banks in Bahrain
ran down their currency operations. None of the four major U.K.
Clearing banks now has a dealing room on the island.
    The two major Bahrain-based international banks, <Arab
Banking Corp> and <Gulf International Bank BSC> have increased
their presence in London and Saudi banks are busy upgrading
representative offices to branch status to allow dealing.
    One economist said: "It is cheaper to run a riyal book in
London than staff an expensive offshore operation in Bahrain...
There is now the nucleus of a two-way market in London."
    Jeddah-based <Riyad Bank> set up as a licensed deposit
taker in London in 1984, while its main rival in Saudi Arabia,
<National Commercial Bank> (NCB) won a licence in November
1986.
    The major market maker has traditionally been London-based
consortium bank <Saudi International Bank> but the kingdom
joint-venture <Saudi American Bank> (SAMBA) also upgraded its
London operation to deposit taker status in mid-February.
    One senior currency trader in Riyadh said: "Inevitably the
volume of business in London has gained pace with the two new
licences for NCB and SAMBA, but there is no question that most
of the liquidity still rests in Saudi Arabia."
    Currency traders said the shift to London in the Saudi
riyal market is difficult to quantify.
    Bahrain Monetary Agency figures show regional currency
deposits held by offshore banks, most in Saudi riyals, dropped
to the equivalent of 12.2 billion dlrs at end-September 1986
from 13.4 billion at end-1985 and a 1983 peak of 15.0 billion.
    The shift has prompted changes in dealing habits. Riyal
trading in the Gulf on Saturdays and Sundays has become very
quiet with London closed while some Saudi and Bahrain banks now
staff offices on Friday, the Gulf weekend. Traders also expect
<Arab National Bank> to step up London operations.
    Traders say it is difficult to foresee the riyal market
moving completely out of the region, partly because of local
demand and partly because of what is seen as the Saudi Arabian
Monetary Agency's (SAMA) desire to moderate
internationalisation of the riyal and protect it from undue
speculation.
    There have been far fewer signs of the Kuwaiti dinar market
shifting from its natural base of Kuwait and trading in Bahrain
and London is still limited.
    But for the first time since the formation of the six
nation Gulf Cooperation Council (GCC) in 1981 there are signs
that a much mooted currency union could come into force soon.
    Currency traders said it remains unclear what form a final
currency union would take for the six states -- Saudi Arabia,
Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates.
    But plans to link the six currencies in a European Monetary
System style with a common peg have been discussed at high
level and could be a topic on the GCC's annual summit expected
to be held in Saudi Arabia late in the year.
    One dealer said: "A lot of exposure is being given to
discussions and plans appear to be quite advanced. But in the
end a political decision has to be taken to give the go-ahead."
    One open question is that of a common peg for currencies.
    The idea of linking the six currencies has been debated
since the start of the GCC. The Kuwaiti dinar is currently
linked to a basket of currencies while the other five
currencies are either officially or in practice linked to the
U.S. Dollar.
    Some traders said a currency union could mean speculation
against the Saudi riyal rubbing off on other Gulf currencies,
but plans call for a permitted divergence in the system of
7-1/4 pct, large enough to avoid sudden strains.
    Another topic for debate is expected to be the continued
slide of the Lebanese pound against the dollar and the
undermining of the effective capital base of Lebanese banks.


.I 14692
.C
trade
.W
BELGOLUX TRADE SWINGS INTO JANUARY DEFICIT.
    BRUSSELS, March 25 - The Belgo-Luxembourg Economic Union
recorded a provisional trade deficit of 9.45 billion francs in
January after a December surplus of 15.32 billion francs,
revised upwards from a provisional surplus of 11.94 billion,
the National Statistics Office said.
    In January 1986, the union recorded a deficit of 23.31
billion francs.
    January imports fell to a provisional 228.86 billion francs
from 240.24 billion in December and 281.65 billion a year
earlier, but exports were also lower, at 219.41 billion francs
against 255.56 billion and 258.34 billion respectively.


.I 14693
.C
acq
.W
GUINNESS SEEKS U.K. INJUNCTION AGAINST SAUNDERS.
    LONDON, March 25 - Guinness Plc <GUIN.L> will seek an
injunction in the U.K. High Court today to freeze the assets of
former Chairman Ernest Saunders in its attempts to recover 5.2
mln stg paid to a Jersey company as part of the company's
takeover battle for <Distillers Co Plc>, a spokesman said.
    He said the court move aimed to freeze Saunders' assets up
to the value of the sum it wanted to recover. It was uncertain
whether the court would reach any decision on the request
today. Guinness said last week it planned to take legal action
to recover the funds, paid to non-executive director Thomas
Ward via the Jersey company.
    Lawyers representing Ward have said he saw the funds as his
reward for services performed during the takeover of
Distillers.
    Guinness is also planning a resolution at the annual
meeting in May to remove both Saunders and Ward from the
company's board.


.I 14696
.C
earn
.W
BASF U.S. PROFIT,TURNOVER BOOSTED BY ACQUISITIONS.
    LUDWIGSHAFEN, West Germany, March 25 - BASF AG <BASF.F>
said net profit of its U.S. Operating company, BASF Corp, rose
last calendar year to 105 mln dlrs from 39 mln in 1985.
    Turnover rose by by more than one billion dlrs to 3.6
billion, the parent company said in a statement. The rise,
however, partly reflected the inclusion of the first full
business year of three acquisitions made in 1985. Excluding
these, BASF Corp turnover rose four pct from 1985.
    Acquisitions were the high-performance connecting materials
operations of Celanese Corp, Inmont Corp bought from United
Technologies and American Enka bought from AKZO NV <AKZO.AS>.
    BASF said it expected a U.S. Investment of 240 mln dlrs in
1987, part of a five-year programme totalling one billion.
    U.S. Projects completed in 1986 included the second acrylic
acid plant in Freeport, Texas, a technical centre in
Southfield, Michigan, in which paint lines from automotive
plants can be refitted, and the new agricultural research
centre in Research Triangle Park in Durham, North Carolina.
    BASF said that work this year had begun in Geismar,
Louisiana, on plants for production of special amines and
polytetrahydrofuran, as well as for expansion of capacity for
producing tetrahydrofuran.


.I 14698
.C
earn
.W
BICC PLC <BICC.L> 1986 YEAR.
    LONDON, March 25 -
    Shr 22.7p vs 20.3p.
    Final div 8.25p, making 11.75p vs 11p.
    Pre-tax profit 101 mln stg vs 92 mln.
    Attributable profit 45 mln vs 39 mln.
    Turnover 2.14 billion stg vs 2.11 billion.
 MORE

.I 14699
.C
money-supply
.W
TAIWAN MONEY SUPPLY RISES 48.22 PCT IN YEAR.
    TAIPEI, March 25 - Taiwan's M-1B money supply rose a
seasonally adjusted 48.22 pct in the year to end-February,
after rising 54.96 pct in the year to January, a central bank
spokesman said.
    Month on month, M1-B fell 5.19 pct from January.
    Unadjusted February M1-B was 1,168 billion dlrs against
1,232 billion in January and 788 billion in February 1986.
    Money supply grew faster in January because the central
bank issued more currency for bonus payments made to workers at
the Lunar New Year, which fell on January 29 this year, banking
sources said.


.I 14702
.C
earn
.W
NIPPON STEEL TO REDUCE DIVIDEND.
    TOKYO, March 25 - Nippon Steel Corp <NSTC.T> plans to
reduce its dividend to three yen in the year ending March 31
1987 from the five yen of 1985/86, a company spokesman said.
    The company estimated parent company current losses at 15
billion yen in 1986/87, including a gain of 95 billion yen from
the sale of securities. This compares with a 36.07 billion yen
profit a year earlier.
    Sales in 1986/87 are seen at 2,150 billion yen, down from
2,685 billion a year ago.
    Poor business prospects were attributed to the yen's rise
and slow world steel demand. Nippon is expected to report
parent company results in late May.
    Total 1986/87 crude steel production is estimated at 25.57
mln tonnes, down from 27.98 mln a year earlier.
    Crude steel production is likely to be below 1986/87 output
but forecasts for profits and sales in the year starting April
1 are unavailable yet, he said.


.I 14703
.C
earn
.W
BAT SEES STRONG PERFORMANCE FROM ALL SECTORS.
    LONDON, March 25 - A strong performance from all BAT
Industries Plc's <BTI.L> major sectors enabled the group's 1986
pretax profits to pass the one billion stg level for the third
year running, Chairman Patrick Sheehy said in a statement.
    The group earlier reported a 19 pct rise in profits to 1.39
billion, which Sheehy said was achieved without any help from
exchange rate fluctuations or acquisitions.
    Good results were achieved by its Argos and Saks Fifth
Avenue in retailing and by Wiggins Teape and Appleton in paper.
    Tobacco accounted for about 50 pct of profit with a four
pct gain to 764 mln stg and a two pct increase in world volume.
    The results were largely in line with analysts expectations
and BAT shares firmed by two pence to 537p at 0955 GMT.
    BAT said the U.S. Brown and Williamson unit held most of
its 1985 gains and increased profit 18 pct in dollar terms.
    Financial services saw profits double to 282 mln with both
Eagle Star and Allied Dunbar achieving further growth.
    Allied Dunbar reported a 51 pct rise in life annual
premiums to 39 mln stg. BAT said it increased new business by
38 pct in the last nine months after a relatively slow first
quarter. Its permanent health insurance was now the market
leader and its Unit Trust group was now the second largest in
the U.K.
    Eagle Star general premiums rose 32 pct to 1.03 billion.
Its life activities also grew 39 pct with better underwriting
results in the second half.
    Cash flow was strong and the gross debt to equity ratio
dropped to 41 pct from 51 pct. The net ratio, at 26 pct, left
the group strongly placed to pursue its further development.
    Profits from paper and pulp grew 29 pct to 217 mln stg,
nearly three times the 1982 level, with Wiggins Teape's sales
rising 36 pct to pass one billion stg.
    BAT said in 1986 it had sold 88 BATUS stores in the U.S.
For 644 mln dlrs and sold Grovewood Securities for 142 mln stg.


.I 14705
.C
trade
.W
TAIWAN SEES ITS INVESTMENT IN U.S. RISING SHARPLY.
    TAIPEI, March 25 - Taiwanese investment in the U.S. Is
expected to nearly double to 80 mln U.S. Dlrs in calendar 1987
and rise to 400 mln dlrs a year by 1991, a five-year forecast
by the Economic Ministry showed.
    Taiwanese investment in the U.S. Last year totalled 46 mln
dlrs, the ministry document said. The investment was mainly in
electronics, trading, food and service industries.
    Lee Ming-Yi, deputy director of the ministry's Industrial
Development and Investment Centre, said the forecast rise is
due to planned government incentives and growing willingness
among Taiwanese to invest abroad.
    Lee told Reuters the incentives, to be introduced in May or
June, include bank loans and a reduction in capitalisation
requirements for businesses seeking to invest in the U.S. To 10
mln Taiwan dlrs from 20 mln.
    He said the moves to encourage investment in the U.S. Are
part of Taiwan's efforts to cut its trade surplus with
Washington, which rose to a record 13.6 billion U.S. Dlrs in
1986 from 1985's 10.2 billion.
    Taiwanese manufacturers can create jobs for Americans and
avoid import quotas if they set up plants in the U.S., He
added.


.I 14708
.C
earn
.W
BABCOCK INTERNATIONAL PLC <BABK.L> YEAR 1986.
    LONDON, March 25 -
    Div 4.7p making 8.7, an increase of 13.9 pct
    Shr 16.3p vs 17.9p adjusted
    Pretax profit 37.09 mln stg vs 34.55 mln
    Net 22.12 mln vs 24.13 mln
    Interest payable 8.10 mln vs 5.35 mln
    Share of associated co's 6.88 mln vs 5.42 mln
    Turnover 1.22 billion stg vs 1.10 billion


.I 14710
.C
earn
.W
DELTA GROUP <DLTL.L> YEAR TO JAN 3.
    LONDON, March 25 -
    Shr net basis 24.8p vs 24.5p
    Shr nil basis 22.7p vs 20.9p
    Div 5p making 7.6p vs 6.5p
    Pretax profit 57.78 mln stg vs 50.61 mln
    Net after tax 37.47 mln vs 36.49 mln
    Outside shareholders interests 1.75 mln vs 1.32 mln
    Extraordinary debit 370,000 vs 1.93 mln
    Turnover 533.59 mln vs 555.81 mln
    Profit breakdown by activity -
    Electrical equipment 28.59 mln stg vs 27.60 mln
    Engineering 10.75 mln vs 11.13 mln
    Industrial services 18.78 mln vs 16 mln
    Corporate finance 340,000 vs 4.12 mln
    Making total pre-tax profit 57.78 mln vs 50.61 mln.


.I 14711
.C
gold
.W
PLACER PACIFIC SAYS BIG BELL GOLD STUDY EXPANDING.
    SYDNEY, March 25 - <Placer Pacific Ltd> said it will
undertake a full feasibility study of Western Australia's Big
Bell gold prospect.
    Results of an economic evaluation of the find, in which
Placer has an option with <Australian Consolidated Minerals
Ltd> (ACM) to earn a 50 pct interest, were encouraging enough
to warrant a full study, Placer said in a statement.
    Big Bell, in the Murchison goldfield 540 km north east of
Perth, was founded in 1904. Between 1937 and 1955 it yielded
22.8 tonnes of gold and 7.8 tonnes of silver while milling
about 30,000 tonnes of ore a month.
    Placer has said the prospect has an estimated 14 mln tonnes
of ore with a three-gram-per-tonne concentration accessible by
open-pit mining and a further 4.5 mln tonnes with a
4.4-gram-a-tonne concentration between 300 and 600 meters
underground.
    It said it was obliged to produce the feasibility study no
later than December 31 this year by which time it would have
spent three mln dlrs on Big Bell.
    If the results are positive and a commitment to develop
made then construction would take about 12 months, Placer said.


.I 14713
.C
earn
.W
BABCOCK EXPECTS FURTHER PROGRESS IN 1987.
    LONDON, March 25 - Babcock International Plc <BABK.L> said
in a statement accompanying final results for 1986, showing
pretax profits up to 37.09 mln stg from 34.55 mln in 1985, that
overall further progress is expected in 1987.
    The predicted slowdown of the U.S. Automobile industry is
affecting the North American group although the improved
performance in the FATA European group during 1986 is expected
to continue into this year.
    In the U.K. Overall profitability will improve when the
Central Electricity Generating Board's ordering programme for
both nuclear and fossil-fired fuels starts.


.I 14714
.C
veg-oil;sun-oil;
.W
EGYPT BUYS 46,000 TONNES OF SUNFLOWERSEED OIL.
    LONDON, March 25 - Egypt purchased 46,000 tonnes of
optional origin sunflowerseed oil at its import tender
yesterday, all for May arrival, traders said.
    The business comprised 41,000 tonnes of crude sunflowerseed
oil in bulk at prices ranging from 344.25 to 348 dlrs and 5,000
tonnes of refined oil in drums at from 517.50 to 522.50 dlrs
per tonne, cost and freight Alexandria, delivered quality
terms.


.I 14715
.C
trade
.W
CHINA TO TIGHTEN IMPORT CONTROL, CUT EXPORT COSTS.
    PEKING, March 25 - China should tighten imports of ordinary
goods and restrict or even forbid import of goods which can be
made domestically, Premier Zhao Ziyang said.
    He told the National People's Congress, China's parliament,
that the country's foreign exchange is limited and must be used
where it is most needed.
    "We should expand production of import substitutes and
increase their proportion," he said.
    On exports, China should increase its proportion of
manufactured goods, especially textiles, light industrial
goods, electronics and machinery, he said.
    Zhao said China should lower the cost of exports and
control the export of goods that incur too much loss. In 1986
China had a trade deficit of 11.9 billion dlrs, down from a
record 14 billion in 1985.
    Zhao said China should work to provide a more favourable
investment environment for foreign businessmen. It should use
foreign funds for production and construction, with stress on
firms making goods for export or import substitutes.
    China should also earn more foreign exchange from tourists
and contracted labour abroad, he added.


.I 14716
.C
silver;copper;
.W
WEST GERMANS TO MINT COMMUNITY ANNIVERSARY COIN.
    BONN, March 25 - The West German Cabinet approved a plan to
mint a special 10-mark coin commemorating the 30th anniversary
of the European Community this year.
    The silver-copper alloy coin will be minted in an edition
of 8.35 mln, a Finance Ministry statement said.


.I 14717
.C
gnp
.W
SINGAPORE GDP TO GROW SIX PCT IN FIRST QUARTER.
    SINGAPORE, March 25 - Singapore's gross domestic product
will grow six pct in the first quarter and five pct in the
second quarter this year, with further growth expected in the
second half, Trade and Industry Minister Lee Hsien Loong told
parliament.
    The figures compared with 3.4 pct contraction and 1.2 pct
growth respectively for the first and second quarters of 1986.
    The estimates were based on a tentative leading indicator
incorporating new business orders, company inventories and
share prices used by his ministry, Lee said, without giving
further details of the new indicator.
    Singapore's economy grew 1.9 pct last year, after shrinking
1.8 pct in 1985. The government has forecast growth rate of
three to four pct for 1987.


.I 14718
.C
oilseed
.W
CARGILL U.K. STRIKE TALKS TO RESUME THIS AFTERNOON.
    LONDON, March 25 - Talks between Cargill U.K. Ltd's
management and unions, aimed at ending the prolonged strike at
its Seaforth oilseed processing plant, will resume this
afternoon, a company spokesman said.
    Yesterday's session failed to reach a compromise but some
progress was made, he said.


.I 14722
.C
meal-feed
.W
BRITISH COMPOUND FEED PRODUCTION DETAILED.
    LONDON, March 25 - Feed compounds, balancers and
concentrates produced in Britain in the five weeks ended
January 31 totalled 973,400 tonnes, against 966,200 tonnes
produced in the same 1986 period, Ministry of Agriculture
figures show.
    However, cattle/calf feed output, the largest single
component, was 7.2 pct down at 435,900 tonnes against 469,900
tonnes. Pig feed was 170,800 tonnes versus 171,600, and poultry
feed 287,600 compared with 256,600. Other smaller components
included in the total all showed increases.


.I 14723
.C
earn
.W
KLOECKNER UND CO'S 1986 PROFIT FALLS ABOUT 20 PCT.
    DUISBURG, West Germany, March 25 - Kloeckner & Co KGaA, the
international trading group, said its 1986 domestic group net
profit fell by around 20 pct against 1985, adding that the
profit resulted largely from a writing back of reserves.
    The company, which gave no 1986 profit figures, posted a
domestic group net profit of 41 mln marks in 1985.
    It said the 1986 profit was made possible through a 40 mln
mark write-back of reserves that had been created to cover
possible price rises. These reserves were no longer necessary
because of recent declines in raw material prices.
    Kloeckner attributed the profit decline to the fall in
prices as well as the lower value of the dollar.
    It said it would pay an unchanged dividend on its ordinary
share capital, which is entirely in private hands and held
largely by family foundations.
    Kloeckner's nominal 100 mark profit-participation
certificates, issued in October 1986, will pay a likely yield
of around 10 pct. Holders of the certificates are entitled to a
quarter of the 1986 payment, or around 2.50 marks, the company
added.


.I 14724
.C
rubber
.W
MIXED ASIAN REACTION TO NEW RUBBER PACT.
    By Rajan Moses, Reuters
    KUALA LUMPUR, March 25 - Governments of major Asian
producing countries have welcomed the conclusion of a new
International Natural Rubber Agreement (INRA), but growers and
traders are unhappy with the development, according to views
polled by Reuter correspondents.
    Officials in Malaysia, Indonesia and Thailand, which
produce the bulk of the world's rubber, said they expected the
new pact to continue to stabilise prices and help their rubber
industries remain viable in the long-term.
    But traders and growers said they were against the new pact
because its buffer stock mechanism was likely to interefere
with free market forces and prevent sharp rubber price rises.
    The new INRA, to replace the current one which expires on
October 22, was formally adopted by most of the world's
producers and consumers in Geneva last Friday.
    It will be open for signature at the U.N. Headquarters in
New York from May 1 to December 31 this year and will enter
into force provisionally when ratified by countries accounting
for 75 pct of world rubber exports and 75 pct of world imports.
    Malaysian Primary Industries Minister Lim Keng Yaik said
the formal adoption of a new pact had dispelled fears of
liquidation of some 360,000 tonnes of INRA buffer stock rubber
and a possible depression of prices.
    He expressed confidence that the new INRA would continue to
keep prices stable by selling or buying rubber as prices rose
or fell through its buffer stock system.
    Malaysia was also happy that in the new INRA financing of
purchases for the normal buffer stock of 400,000 tonnes and a
contingency buffer stock of 150,000 tonnes would be done
through direct cash contributions from members, he said.
    Under the existing pact, members can borrow from banks to
finance INRA's buffer stock purchases. This has been viewed
with concern by some members who fear the INRA may become
indebted and ultimately face collapse, like the International
Tin Agreement.
    "This will ensure the buffer stock operation is carried out
without any financial encumbrance," Lim said.
     Malaysia, the world's largest producer, was seeking
cabinet approval to join the new INRA and hoped other producers
and consumers would also become members, he said.
    Officials in Jakarta said the new pact would bring benefit
to Indonesia's rubber industry's by stabilising prices.
    It was unlikely to collapse like the tin agreement because
its new financial provisions had been tightened, they said.
    Thai officials told Reuters they were optimistic the new
pact was viable because it strictly limited the extent of debt
the INRA buffer stock manager might commit to his market
operations.
     Malaysian growers, however, said they preferred a free
rubber market because an INRA had a tendency to keep prices at
levels that were only acceptable to consumers.
    "With the INRA's ability to keep prices at a certain stable
level, consumers are assured of rubber at almost a fixed price,
while producers may never see sharp price rises," a Malaysian
Rubber Producers Council source told Reuters.
    Producers also wanted a free rubber market without the
overhang of a 360,000 tonne INRA buffer stock which had
psychologically prevented price rises, he said.
    State plantation officials in Sri Lanka said prices had
been depressed since INRA's inception and the creation of a
buffer stock, and they seemed unlikely to rise.
    Sri Lanka should not be a member of the INRA because it was
expensive to maintain a buffer stock, they added.
    Traders in the region, meanwhile, said prices might be
pressured by the new pact in the long term as its potential to
stabilise prices and buffer stock capacity would spur producers
to produce more.
    Most Malaysian and Singapore traders said the new pact's
conclusion had little impact on prices and it was unlikely to
allow sharp price fluctuations in future.
    "The 360,000 tonnes in the INRA buffer stock must be
liquidated and a free market returned," a Malaysian trader said.
    Japanese traders said the new pact had a chance for success
as most world producers and consumers had adopted it, but they
questioned the ability of some financially-strapped producers
to finance buffer stock operations.


.I 14725
.C
pet-chem
.W
CIBA-GEIGY, PHILLIPS PETROLEUM IN JOINT VENTURE.
    BASLE, March 25 - Ciba-Geigy AG <CIGZ.Z> said it would
establish a joint venture with Phillips Petroleum Co. In Europe
to manufacture a high performance engineering thermoplastic.
    Initially, the Swiss chemicals firm will manufacture
polyphenylene sulfide compounds using resins from Phillips.
    The two firms will later set up a joint venture to produce
the polyphenylene resins and compounds, which will be marketed
independently under their respective trademarks. A Ciba-Geigy
spokesman declined to say how much the venture would cost.
    Polyphenylene sulfide is widely used in the electronic,
automotive, and petroleum fields.


.I 14726
.C
iron-steel
.W
KRUPP TO BUILD SOUTH KOREAN STEEL PLANT.
    ESSEN, West Germany, March 25 - Fried. Krupp GmbH said its
Krupp Industrietechnik GmbH subsidiary has won a 130 mln marks
joint order with Samsung Shipbuilding and Heavy Industries Co.
Ltd of Seoul for a steel works in Pohang, South Korea.
    It said the order, awarded by the Pohang Iron and Steel Co.
Ltd, involves a works due to go on stream in 1989 producing
250,000 tonnes of non-corrosive quality steels annually.
    The consortium partners will supply the plant, supervise
its construction and advise on product processing, with Krupp
providing a 100-tonne capacity arc furnace and a converter for
steel refining.
    The West German company will supply ladles, vehicles,
electrical and exhaust cooling apparatus and dust filters. It
will also fit out the plant's laboratory.
    Among other things Krupp said it will provide know-how for
all production phases and train the Korean workforce.
    It said Samsung will take care of the Korean part of the
engineering and electrical work, the water treatment and other
mechanical equipment, according to Krupp basic engineering.
    Extruded ingots from the plant will be converted to sheet
in an existing hot rolling mill. The sheet will be processed in
facilities which are to be erected, Krupp said.


.I 14727
.C
earn
.W
SWIRE EXPECTS CONTINUED GROWTH THIS YEAR.
    HONG KONG, March 25 - Swire Pacific Ltd <SWPC.HKG> expects
continued growth in all divisions this year though it sees
problems in the marine sector, chairman Michael Miles said.
    He told reporters:"1987 has started well for Cathay Pacific
Airways which looks forward to another good year... Swire
Properties expects further good results both from properties
under development for sale and from its investment property
portfolio."
    He did not give any specific projections for earnings. The
company earlier reported 46 pct higher 1986 net profits at 1.78
billion H.K. Dlrs from a year ago.
    Swire also had an extraordinary profit of 1.38 billion dlrs
mainly from the sale of a 15.25 pct interest in Cathay Pacific
Airways Ltd <CAPH.HKG>.
    Miles said the company will use the money to develop its
business, primarily in Hong Kong.
    Swire's stake in Cathay was first reduced to 54.25 pct from
70 pct when Cathay was publicly floated, and then cut to 50.25
pct when Cathay issued new shares amounting to 12 pct of the
enlarged capital to the state-owned <China International Trust
and Investment Corp>. Cathay last week reported its 1986
profits rose to 1.23 billion dlrs from 777 mln a year ago.
    Miles said despite last year's rapid expansion in Cathay's
flights and fleet, load factor is still holding up at 70 pct.
    He said Cathay's growth last year was the result of "a
marginal increase in the revenue load factor coupled with
savings in fuel costs."
    "At present fuel prices are stable and will remain stable
for the rest of this year," he said, "though there might be a bit
of increase later this year.''
    Miles said Swire is not abandoning its offshore oil service
operations, even though the marine sector is generally
depressed. "Obviously the marine industry is not getting any
better," he said.
    The real estate market remained strong and Swire last year
revalued its property portfolio up 634 mln dlrs compared with
an increase of 864.4 mln dlrs the previous year.
    Miles said he expects the property market to remain firm
but said the firm has no available land for a major housing
project such as its Taikoo Shing development on Hong Kong
island now near completion.
    He said the company's 50 pct unit <Hongkong United Dockyard
Ltd> is negotiating with the government for the development of
an existing petroleum storage depot into a major housing
estate. "But it's not as big as Taikoo Shing," he said.


.I 14728
.C
sugar
.W
UNCERTAINTY SURROUNDS EC SUGAR TENDER RESULT-TRADE.
    LONDON, March 25 - Considerable uncertainty surrounds the
outcome of today's EC white sugar tender, traders here said,
noting it remains overshadowed by European operator threats to
move over 800,000 tonnes of sugar into intervention.
    They said that due to the dispute between the Commission
and producers over the issue, it is not clear whether the
Commission will authorise any exports at all or grant licences
on a large tonnage.
    The subsidy is seen being set above 45.00 Ecus per 100
kilos, although traders are reluctant to predict a precise
level after prices fell yesterday.
    Earlier, traders in Paris said they expected the Commission
to award licences for around 50,000 tonnes of white sugar with
a maximum export rebate of 45.75 to 46.0 Ecus.
    Last week, the Commission granted licences to end August on
60,500 tonnes of whites at a maximum rebate of 44.819.


.I 14729
.C
crude
.W
ABU DHABI TO REOPEN GULF OILFIELD HIT IN 1986 RAID.
    ABU DHABI, March 25 - Abu Dhabi's offshore Abu al-Bukhoosh
oilfield in the Gulf, shut since an aerial attack last
November, will reopen when new anti-aircraft defences are
ready, and this could be in the next two months, oil industry
sources said.
    They said the Abu Dhabi government and Compagnie Francaise
des Petroles (Total) <TPN.PA>, whose Total Abu al-Bukhoosh
subsidiary owns 51 pct of the field, have agreed on the
reopening, but that a date has not been definitely fixed.
    Unidentified planes hit the field, 100 miles off Abu Dhabi,
last November 25.
    The raid killed eight workers and destroyed the main living
quarters and a bridge linking a wellhead to the main production
platform.
    Western diplomats in the region say Iran was responsible
but Tehran has blamed its Gulf War enemy Iraq.
    Abu al-Bukhoosh was producing 57,000 barrels per day (bpd)
at the time of the attack, but the sources said it would resume
at a maximum of half that level because of reduced staff and
the fact only four of five wellheads were now operable.
    The sources said only 80 personnel can be housed in
remaining accomodations, the sources said.
    Facilities being installed to protect the field include
aircraft detection equipment, anti-aircraft missiles, housing
for military personnel and helicopter landing pads, the sources
said.
    Abu Dhabi is the largest oil producer in the United Arab
Emirates, accounting for about 800,000 bpd of its total 1.15
mln bpd production, the sources said.
    They also said Iran was working to reopen its Sassan field,
part of the same reservoir as Abu al-Bukhoosh and located only
a few miles away. Sassan was heavily damaged by an Iraqi air
raid only 10 days before Abu al-Bukhoosh was attacked.


.I 14731
.C
acq
.W
RAINBOW LIFTS PROGRESSIVE STAKE TO 52 PCT.
    WELLINGTON, March 25 - <Rainbow Corp Ltd> said it has
lifted its stake in supermarket group <Progressive Enterprises
Ltd> to 52 pct from 44 pct.
    It said in a statement it has bought an extra 9.4 mln
shares at prices ranging from 3.80 N.Z. Dlrs to 4.80.
    Progressive is currently the subject of both a proposed
merger with Rainbow and a full takeover bid from <Brierley
Investments Ltd> (BIL). The BIL bid, launched on Monday, is at
4.20 dlrs a share. The Rainbow merger involves shareholders in
both Rainbow and Progressive being issued shares in a new
company, <Astral Pacific Corp Ltd>, on a one-for-one basis.
    Rainbow chief executive Craig Heatley said, "In our opinion
BIL's actions over the last few days have been undertaken for
their own strategic purposes which conflict with the desire of
both companies to merge their interests."
    BIL has said it is against the merger because it sees
Progressive shares as being worth twice as as much as
Rainbow's.
    Progressive traded today at 4.42, Rainbow at 3.66 and BIL
at 4.30 at the end of morning trading on the New Zealand Stock
Exchange.


.I 14734
.C
dlr;money-fx;yen;
.W
YEN MAY RISE TO 140 TO THE DLR, NIKKEIREN SAYS.
    TOKYO, March 25 - The yen could rise to 140 yen to the
dollar, a leading Japanese businessman said.
    Bumpei Otsuki, president of the influential Japan
Federation of Employers' Associations, (Nikkeiren), told
reporters: "The yen might rise as far as 140 (to the dollar).
The U.S. Economy is not good, and as long as the U.S. Economy
is not good, the U.S. Will put various pressures (on Japan)."
    "The yen's level depends on the condition of the U.S.
Economy rather than Japan's economy, and as long as the
American situation is bad, the yen will continue to rise," he
said.
    To cope with the negative impact of the strong yen,
Japanese enterprises must strive to cut costs by all means,
including holding down wages as much as possible, Otsuki said.
    He rejected recent calls from some government quarters for
wage increases this year as a means of raising private
consumption and thus boosting domestic demand.
    "We have to keep wages as low as possible," he said.
    He also said the yen's large and rapid rise is depressing
the outlook for the Japanese economy, noting that in addition
to hurting exporters it is also damaging domestic market
manufacturers through cheap imports.
    Parts of the service sector are also threatened, Otsuki
said.
    Tertiary industries provide services to manufacturers and a
downturn in manufacturing profits will adversely affect service
industries, he said.
    It is also doubtful whether the tertiary sector can fully
employ those put out of work in the manufacturing sector, he
said.
    Profits of service sector companies are likely to fall in
the business year ending in March 1988, leading to a possible
recession in the Japanese economy, he said.
    Otsuki said economic growth is unlikely to pick up beyond
levels experienced in 1986.
    The government's Economic Planning Agency said last week
the economy grew at 2.5 pct in 1986, the worst performance
since 1974 when the economy shrank 1.4 pct due to the first oil
price crisis.
    In order to stimulate domestic demand and boost the
economy, tax reforms aimed at bringing down the cost of land
and reforming the nation's housing stock are needed, along with
steps to bring down the high cost of commodities, he said.


.I 14735
.C
dlr;money-fx;
.W
JAPAN BUYS MODEST AMOUNT OF DOLLARS, DEALERS SAY.
    TOKYO, March 25 - The Bank of Japan bought a modest amount
of dollars this morning, possibly around 200 to 300 mln,
dealers said.
    One dealer said the central bank bought about 200 mln dlrs
through brokers and the rest through banks. The buying began
when the dollar was at about 149.60 yen, and helped drive the
U.S. Currency up to around 150, he said.
    Another said the central bank seemed to be trying to push
the dollar up above 150 yen. But heavy selling at around that
level quickly pushed the dollar back down towards 149 yen,
dealers said.


.I 14737
.C
money-fx;interest;
.W
JAPAN DOES NOT INTEND TO CUT DISCOUNT RATE-SUMITA.
    TOKYO, March 25 - Bank of Japan governor Satoshi Sumita
said the central bank has no intention of cutting its discount
rate again as a way of preventing the yen's rise.
    He told a press conference that the growth of Japanese
money supply remains high.
    The bank will have to watch closely various developments
resulting from its already eased monetary stance, such as the
sharp rise in real estate and stock prices, he said.
    Although the yen's rise will have a greater deflationary
impact on the economy, the economy is not likely to slow down
much further, Sumita said.
    "I don't think we should change our economic outlook at the
moment," Sumita said.
    Sumita has said in the past that he expects the economy to
show a gradual upturn in the second half of the year.
    The governor said the six major industrial nations are
expected to review last month's pact on currency stability when
they meet next in April.
    Dealers said they expect the six - Britain, Canada, France,
Japan, the U.S. Amd West Germany - to meet just before the
IMF/World Bank interim committee meeting in Washington starting
on April 9.


.I 14738
.C
money-fx
.W
U.K. MONEY MARKET FORECAST REVISED TO SHOW SURPLUS.
    LONDON, March 25 - The Bank of England said it had revised
its forecast of the liquidity position in the money market
today to a surplus of 150 mln stg after it estimated a flat
position earlier this morning.


.I 14739
.C
money-fx
.W
BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET.
    LONDON, March 25 - The Bank of England said it had not
operated in the money market during the morning session.
    Earlier, the Bank revised its forecast of the liquidity
position in the system today to a surplus of 150 mln stg from
its original estimate of a flat position.


.I 14741
.C
money-fx
.W
EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA.
    TOKYO, March 25 - Bank of Japan governor Satoshi Sumita
said that current exchange rates are almost within the levels
agreed to by six major nations last month in Paris.
    Asked whether a dollar/yen rate of 148 or 149 reflected
economic fundamentals, he said current rates almost reflect
fundamentals.
    Sumita told reporters major nations have cooperated to
bring about currency stability in line with the Paris
agreement, which stipulated that they would closely cooperate
to that end. He repeated the central bank will intervene if
necessary, adding he did not think a dollar free-fall was
likely.
    But Sumita said he could not say exactly what currency
levels would be considered in line with underlying economic
fundamentals.
    In Paris on February 22, Britain, Canada, France, Japan,
the U.S. And West Germany agreed to cooperate to hold
currencies around their then current levels.
    Sumita said he could not find any specific reasons behind
the fall of the dollar to a record low against the yen
yesterday. But he said the market rushed to sell dollars as it
nervously reacted to statements abroad and to developments
surrounding trade tensions.
    U.S. Treasury Secretary James Baker said over the weekend
that the Paris pact did not encompass fixed tragets for the
dollar. U.S. Trade Representative Clayton Yeutter called
U.S/Japan relations on certain key trade issues very strained.
    The market reacted nervously because the dollar has been
moving narrowly against the yen since mid-January, Sumita said.
He added he does not expect the yen/dollar exchange rate to
remain unstable because the market is concerned about a sharp
rise of the yen.
    The Bank of Japan will keep a close watch on exchange rates
in line with the Paris accord, he added.


.I 14743
.C
dlr;money-fx;yen;
.W
JAPAN ASKS TRADERS, EXPORTERS TO CUT DOLLAR SALES.
    TOKYO, March 25 - The Ministry of International Trade and
Industry (MITI) has asked about 30 Japanese trading houses and
exporters to refrain from excessive dollar selling, trading
house officials said.
    The officials told Reuters MITI asked them to moderate
their foreign exchange trading because the excessive rise in
the yen will have unfavourable effects on the economy. It made
the request by telephone.
    A MITI official said the ministry has conducted a survey of
foreign exchange trading by trade houses and exporters. But he
said it was not aimed at moderating dollar selling.
    The trading house officials said MITI had asked them to
undertake foreign exchange transactions with due consideration
to the adverse effects excessive exchange rate movements would
have on the economy.
    The MITI official said MITI undertakes such surveys when
exchange rates fluctuate widely. A similiar survey was made
when the currency fell to the previous record low of 149.98 on
January 19. It hit a new record low of 148.20 yen yesterday.
    He said the survey showed currency transactions by trade
houses and exporters contributed little to the dollar fall.


.I 14745
.C
dlr;money-fx;
.W
CENTRAL BANKS BUY DOLLARS FOR YEN IN LONDON.
    LONDON, March 25 - The Bank of Japan intervened to stem
strong yen rises against the dollar during London trading this
morning, dealers said.
    The Bank of Japan here declined comment.
    The Bank of England was also rumored to be buying dollars
against the yen this morning but it also declined comment.
    Dealers said the intervention halted a sudden late morning
drop to a low of 148.65 yen, holding the dollar steady until
midsession at about 148.80.
    The Bank of England was strongly rumored to have intervened
on behalf of the dollar against the yen yesterday, but it gave
no confirmation.
    Overnight reports from Tokyo said that the Bank of Japan
was aggressively supporting the dollar, but failed to push it
back to the perceived target level of 150 yen.
    Selling during the London trading morning was largely
attributed to Japanese institutions.
    Dealers here were loath to quantify the scale of Bank of
Japan action this morning. One U.S. Bank trader said it could
have been up to 500 mln dlrs, but said this was largely a
guess.


.I 14749
.C
earn
.W
BICC SEEKS ACCELERATED EARNINGS GROWTH LONDON, March 25 - BICC.
Plc <BICC.L>, which earlier announced a 10 pct rise in 1986
pre-tax profits, said it was determined to achieve higher
levels of performance, quality and service to accelerate its
improvement in earnings.
    BICC said in a statement that sales in BICC Cables were
down on 1985 due to a sharp drop in demand for cable in the oil
and chemical industries after the oil price drop. But profits
in Balfour Beatty were substantially improved.
    Profits increased in BICC Technologies and in BICC
International in local currency terms, while Associated British
Cables had another excellent year, the company said.
    BICC shares were last quoted at 357p, up from 344p at
yesterday's close, in buoyant response to results which were
ahead of market expectations, dealers said.
    BICC pre-tax profits rose to 101 mln stg in 1986 from 92
mln in 1985, with turnover rising from 2.11 billion stg in 1985
to 2.14 billion stg in 1986.


.I 14750
.C
earn
.W
OCEAN TRANSPORT AND TRADING PLC <OTTL.L> YEAR 1986.
    LONDON, March 25 -
    Shr net basis 21.4p vs 17.5p
    Div 6.1p making 9p vs 6.5p
    Pretax profit 37.2 mln stg vs 31.9 mln
    Net after tax 25.7 mln vs 20.3 mln
    Minority interest 700,000 vs 1.1 mln
    Extraordinary debit 1.9 mln vs 3.5 mln
    Turnover 827 mln vs 766.9 mln
    Note - The company said the sale of the minority holding in
OCL in 1986 has transformed the balance sheet and enables it to
accelerate development.


.I 14751
.C
acq
.W
DART GROUP RAISES SUPERMARKETS GENERAL <SGL> BID.
    LANDOVER, Md., March 25 - <Dart Group Corp> said it has
raised its offer to acquire Supermarkets General Corp to 42.00
dlrs in cash and three dlrs in exchangeable preferred stock per
Supermarkets General share from 41.75 dlrs per share in cash.
    The company said it would also be willing to negotiate a
plan with the Supermarkets General board under which
Supermarkets General shareholders would have a common stock
interest in the combined company.  It said it remains willing
to negotiate all terms of the proposed acquisition.
    The original bid was worth about 1.62 billion dlrs.
    Dart said the preferred stock in the new bid would be
exchangeable for a new class of Supermarkets General debt
securities that would be developed by Dart and Supermarkets.
    The new proposal would be subject to approval by the
Supermarkets General board, it said.  The new bid was contained
in a letter to the Supermarkets General board.
    In Woodbridge, N.J., Supermarkets General -- responding to
a previous letter to its board by Dart -- said "Your conduct
indicates to us that no transaction involving trust and
confidence can be entered into with you.  Your propaganda and
missstatements will not panic our board."
    Dart, in its previous letter, had alleged that Supermarkets
General executives were seeking millions of dollar in severance
and tax payments from Dart.


.I 14752
.C
earn
.W
OLSON INDUSTRIES INC <OLSN> 4TH QTR NET.
    SHERMAN OAKS, Calif., March 25 -
    Oper shr 28 cts vs 1.16 dlrs
    Oper net 194,000 vs 1,255,000
    Sales 27.5 mln vs 30.5 mln
    Year
    Oper shr 2.68 dlrs vs 63 cts
    Oper net 1,880,000 vs 684,000
    Sales 100.5 mln vs 115.6 mln
    Avg shrs 700,086 vs 1,079,165
    NOTE: 1986 net excludes tax credits of 1,042,000 dlrs in
quarter and 1,603,000 dlrs in year.
    Net excludes discontinued operations gain 330,000 dlrs vs
loss 385,000 dlrs in quarter and gain 485,000 dlrs vs loss
2,692,000 dlrs in year.


.I 14753
.C
earn
.W
OLSON <OLSN> TO HAVE LOSS FROM EGG UNIT SALE.
    SHERMAN OKAS, Calif., March 25 - Olson Industries Inc said
it is in final negotiations on the sale of its remaining egg
operations and expects the sale to generate a charge of about
two mln dlrs against 1987 net income.
    The company said, however, that the sale will generate
substantial cash flow to pay off bank debt and improve working
capital, eliminate unmanageable effects on profits of the price
instability of the egg business and allow it to concentrate on
its plastics packaging business.


.I 14755
.C
acq
.W
E.D. And F. MAN TO BUY INTO HONG KONG FIRM.
    HONG KONG, March 25 - The U.K. Based commodity house E.D.
And F. Man Ltd and Singapore's Yeo Hiap Seng Ltd jointly
announced that Man will buy a substantial stake in Yeo's 71.1
pct held unit, Yeo Hiap Seng Enterprises Ltd.
    Man will develop the locally listed soft drinks
manufacturer into a securities and commodities brokerage arm
and will rename the firm Man Pacific (Holdings) Ltd.


.I 14756
.C
earn
.W
ORACLE CORP <ORCL> 3RD QTR FEB 28 NET.
    BELMONT, Calif., March 25 -
    Shr 16 cts vs eight cts
    Net 4,834,000 vs 2,052,000
    Revs 34.9 mln vs 16.0 mln
    Avg shrs 31.1 mln vs 26.8 mln
    Nine mths
    Shr 26 cts vs 13 cts
    Net 8,006,000 vs 3,310,000
    Revs 80.9 mln vs 34.5 mln
    Avg shrs 30.8 mln vs 26.3 mln
    NOTE: Share adjusted for two for one stock split.
    Current year net includes capitalized software costs of
1,295,000 dlrs in quarter and 3,701,000 dlrs in nine mths.


.I 14758
.C
earn
.W
ENTERRA CORP <EN> 4TH QTR LOSS.
    HOUSTON, March 25 -
    Shr loss 4.14 dlrs vs loss 19 cts
    Net loss 37.1 mln vs loss 1,712,000
    Revs 27.3 mln vs 33.4 mln
    Year
    Shr loss 5.51 dlrs vs loss 73 cts
    Net loss 49.3 mln vs loss 6,544,000
    Revs 109.0 mln vs 141.9 mln
    NOTE: 1986 net both periods includes 34.8 mln dlr
weritedown of assets of services segment and Southeast Asian
joint venture.


.I 14759
.C
earn
.W
JOHNSTOWN/CONSOLIDATED REALTY TRUST <JCT> NET.
    EMERYVILLE, Calif., March 25 - 4th qtr
    Shr 15 cts vs eight cts
    Net 1,800,000 vs one mln
    Year
    Shr 51 cts vs 1.10 dlrs
    Net 6,200,000 vs 13.2 mln
    NOTE: Net includes loan loss provisions of 14 cts shr vs 18
cts in quarter and 24 cts shr vs 36 cts in year.


.I 14760
.C
acq
.W
DURIRON <DURI> COMPLETES VALTEK <VALT> PURCHASE.
    DAYTON, Ohio, March 25 - Duriron Co Inc said it has
completed the acquisition of Valtek Inc for 11.75 dlrs per
share following Valtek shareholder approval yesterday.


.I 14761
.C
earn
.W
WASHINGTON FEDERAL SAVINGS <WFSL> QUARTERLY DIV.
    SEATTLE, Wash., March 24 -
    Qtly div 17 cts vs 17 cts
    Pay April 24
    Record April 7
    Note: year ago adjusted to reflect March 19 three-for-two
stock split.
    (Washington Federal Savings and Loans Association)


.I 14763
.C
earn
.W
ROWLEY-SCHER <RSCH> TO HAVE LOSS FOR YEAR.
    BELTSVILLE, Md., March 25 - Rowley-Scher Reprographics Inc
said it expects to report an operating loss and a loss from the
sale of its Mid South Repro subsidiary for the year ending
MArch 31.
    Last year, the company reported earnings of 977,000 dlrs.
    Rowley-Scher did not disclose details of the sale of Mid
South Repro.
    It said the sale has eliminated an unprofitable operation.
    The company also said it will open two new reprographic
centers in the Washington/Baltimore area within the next three
weeks, brining the total there to 11, and a new downtown Boston
location in the same time period, brining the number in the
Boston area to four.


.I 14764
.C
acq
.W
******DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER.
Blah blah blah.

.I 14767
.C
acq
.W
DIXONS GETS ONLY 20 PCT OF CYCLOPS <CYL> IN BID.
    NEW YORK, March 25 - <Dixons Group PLC> said only about
852,000 shares of Cyclops Corp common stock, or 20 pct on a
fully diluted basis, were tendered and not withdrawn under its
bid for all shares that expired yesterday, but the companmy has
still decided to accept all shares validly tendered.
    The company said it now has about 22 pct ownership of
Cyclops on a fully diluted basis and expects to proceeds toward
completion of its proposed acquisition of Cyclops.
    Last week, before extending its Cyclops offer for one week
at the request of the Securities and Exchange Commission,
Dixons had reported that 54 pct of Cyclops' stock had been
tendered in response to its 90.25 dlrs per share offer which
expired at 2400 EST yesterday.
    Yesterday, CAYACQ Corp dropped certain conditions of its
92.50 dlrs a share offer for Cyclops and firmed up the
financing for the proposed transaction. CAYACQ, an investor
group led by Audio/Video Affiliates Inc and Citicorp, raised
the value of its offer from 80 dlrs per Cyclops share on Friday.


.I 14771
.C
earn
.W
KAUFMAN AND BROAD HOME CORP <KBH> 1ST QTR FEB 28.
    LOS ANGELES, March 25 -
    Shr 17 cts vs seven cts
    Net 4,678,000 vs 1,856,000
    Revs 110.5 mln vs 61.7 mln
    Avg shrs 27.0 mln vs 25.0 mln


.I 14773
.C
acq
.W
RENOUF HAS 93.4 PCT OF BENEQUITY <BH> UNITS.
    NEW YORK, March 25 - <Renouf Corp International> said it
now owns 93.4 pct of Benequity Holdings a California Limited
Partnership.
    Renouf  said it has accepted for payment all 3,914,968
units of Benequity Holdings tendered in response to its 31 dlrs
per unit offer. Along with the 1,449,550 units already held by
Renouf, it now owns 93.4 pct of the 5,745,706 units outstanding.


.I 14774
.C
crude
.W
OIL ANALYST SEES PAPUA NEW GUINEA AS GOOD PROSPECT.
    SURFERS PARADISE, Australia, March 25 - Papua New Guinea
(PNG) provides the most exciting new prospect in the
Asia-Pacific region for oil production, energy analyst Fereidun
Fesharaki said here.
    The recent successful find at Iagifu is likely to put PNG
on the list of major oil exporters by the early 1990s, he told
the Australian Petroleum Exploration Association annual
conference.
    Fesharaki, leader of the Energy Program at the East-West
Center in Honolulu, Hawaii, was speaking on the Asia-Pacific
petroleum outlook.
    With domestic demand of around 12,000 barrels per day (bpd)
and prospects of production of over 100,000 bpd by late 1991,
PNG would become an Ecuador-level crude exporter, Fesharaki
said.
    The Iagifu wells in the Papuan Basin have recorded the best
oil flows in more than 60 years of exploration in PNG.
    The PNG government's Geological Survey in a paper
distributed at the conference estimates Iagifu reserves at
about 500 mln barrels.
    PNG enjoys the most liberal tax regime in the region with
no secondary taxes, Fesharaki said.
    "We expect a much larger oil search in Papua New Guinea, and
discovery of much larger volumes of oil, similar in quality to
(light) Bass Strait crude," Fesharaki said.
    There are also large pockets of high quality condensates to
be produced, notably in the Juha field near Iagifu which is
capable of producing 30,000 to 40,000 bpd, he said.
    But prices should be somewhat higher than the present
levels to justify development of the Juha field, he said.
    The PNG Geological Survey paper noted there are five large
prospective but little-explored sedimentary basins in PNG.


.I 14776
.C
earn
.W
USAIR GROUP INC <U> SETS QUARTERLY.
    WASHINGTON, March 25 -
    Qtly div three cts vs three cts prior
    Pay April 30
    Record April 16


.I 14779
.C
acq
.W
MCFARLAND <MCFE> TO BUY PETROMINERALS <PTRO>.
    SANTA FE SPRINGS, Calif., March 25 - McFarland Energy Inc
said its board and that of Petrominerals Corp have approved a
definitive agreement for McFarland to acquire Petrominerals in
an exchange of stock.
    McFarland said it would exchange one common share for each
5.4 Petrominerals shares.  McFarland said former holders of
Petrominerals will have a 25 pct interest in the combined
company.
    The merger is still subject to approval by shareholders of
both companies.


.I 14780
.C
acq
.W
TIMMINCO ACQUIRES UNIVERSAL ADHESIVES.
    TORONTO, March 25 - <Timminco Ltd> said it acquired
Universal Adhesives Inc, of Memphis, for undisclosed terms, in
a move to expand Timminco's operations into the United States.
    The company said Universal Adhesives, with five U.S.
plants, has annual sales of 12 mln U.S. dlrs, which will double
Timminco's presence in the North American adhesives market.
    Timminco said Universal Adhesives will complement the
company's Canadian-based industrial adhesives division and is a
key step in its long-term goal for expansion in the specialty
chemical field.


.I 14781
.C
earn
.W
<PALOMA PETROLEUM LTD> YEAR NET.
    CALGARY, Alberta, March 25 -
    Shr 32 cts vs 29 cts
    Net 3,320,206 vs 2,990,695
    Revs 13.5 mln vs 14.9 mln


.I 14782
.C
money-fx;interest;
.W
U.K. MONEY MARKET SURPLUS REVISED TO 250 MLN STG.
    LONDON, March 25 - The Bank of England said it revised up
its forecast of today's surplus in the money markets to 250 mln
stg from its earlier estimate of a 150 mln.
    The central bank has not operated in the market today.


.I 14784
.C
earn
.W
<AMERICAN RESOURCE CORP LTD> YEAR NET.
    TORONTO, March 25 -
    Shr five cts vs 51 cts
    Net 2,300,000 vs 22,500,000
    Revs not given
    Note: Prior shr and net include 20.3 mln U.S. dlr gain on
sale of equity holdings
    Results in U.S. funds


.I 14785
.C
acq
.W
******WASTE MANAGEMENT ENDS TENDER OFFER FOR CHEMLAWN.
Blah blah blah.

.I 14786
.C
coffee
.W
WEST GERMAN JAN COFFEE IMPORTS DOWN ON YEAR-AGO.
    HAMBURG, March 25 - West German gross green coffee imports
in January fell sharply to 38,616 tonnes from 54,576 in January
last year, figures from the Federal Statistics Office show.
    Imports of decaffeinated unroasted coffee were 396 tonnes
against nil a year earlier.


.I 14787
.C
earn
.W
ONE VALLEY BANCORP <OVWV> RAISES QUARTERLY.
    CHARLESTON, W.Va., March 25 -
    Qtly div 26 cts vs 25 cts prior
    Pay April 15
    Record March 31
    NOTE: One Valley Bancorp of West Virginia Inc.


.I 14788
.C
earn
.W
NATIONAL DATA CORP <NDTA> 3RD QTR FEB 28 NET.
    ATLANTA, March 25 -
    Shr 31 cts vs 26 cts
    Net 3,516,000 vs 2,972,000
    Revs 40.0 mln vs 36.3 mln
    Avg shrs 11.4 mln vs 11.2 mln
    Nine mths
    Shr 89 cts vs 73 cts
    Net 10.0 mln vs 8,146,000
    Revs 116.8 mln vs 105.0 mln
    Avg shrs 11.3 mln vs 11.1 mln


.I 14789
.C
earn
.W
NVHOMES <NVH> SETS TWO-FOR-ONE SPLIT.
    MCLEAN, Va., March 25 - NVHomes LP said its board declared
a two-for-one split of Class A units, payable to shareholders
of record on April 20.
    It said certificates will be distributed about two weeks
after the record date.


.I 14791
.C
earn
.W
VANGUARD TECHNOLOGIES INTERNATIONAL INC <VTI>.
    FAIRFAX, Va., March 25 -
    Shr 19 cts vs 10 cts
    Net 653,464 vs 287,606
    Revs 10.6 mln vs 7,600,000
    Year
    Shr 68 cts vs 46 cts
    Net 2,309,181 vs 1,408,813
    Revs 38.4 mln vs 26.0 mln


.I 14792
.C
earn
.W
THOMSON MCKINNON U.S. GOVERNMENT FUND DIVIDEND.
    NEW YORK, March 25 -
    Mthly div 7.3 cts vs 7.5 cts in prior month
    Payable April six
    Record Marcxh 30


.I 14793
.C
earn
.W
THOMSON MCKINNON INCOME FUND DIVIDEND.
    NEW YORK, March 25 -
    Mthly div 8.5 cts vs 9.2 cts in prior month
    Payable April six
    Record Marcxh 30


.I 14794
.C
earn
.W
(OAKRIDGE HOLDINGS INC) 2ND QTR DEC 31 NET.
    HILLSIDE, ILL., March 25 -
    Shr 48 cts vs four cts
    Net 882,000 vs 82,000
    Sales 968,000 vs 784,000
    Six mths
    Shr 53 cts vs 11 cts
    Net 970,000 vs 202,000
    Sales 2,001,000 vs 1,521,000
    NOTE: 1986 net includes a gain of 26 cts a share from the
sale of a funeral home, and tax credits of 20 cts. 1985 net
includes tax credits of one cent in the quarter and 3.7 cts in
the six months period.


.I 14795
.C
earn
.W
GENERAL COMPUTER CORP <GCCC> 3RD QTR FEB 28 NET.
    TWINSBURG, Ohio, March 25 -
    Shr 10 cts vs 20 cts
    Net 146,000 vs 230,000
    Revs 3,766,000 vs 3,271,000
    Avg shrs 1,458,000 vs 1,125,000
    Nine mths
    Shr 15 cts vs 58 cts
    Net 212,000 vs 653,000
    Revs 10.6 mln vs 9,561,000
    Avg shrs 1,458,000 vs 1,125,000


.I 14798
.C
acq
.W
BRIERLEY OFFER FOR PROGRESSIVE STILL VALID.
    WELLINGTON, March 25 - <Brierley Investments Ltd>, (BIL),
said its offer of 4.20 N.Z. Dlrs per share for supermarket
group <Progressive Enterprises Ltd> still stands, although
<Rainbow Corp Ltd> said today it has 52 pct of Progressive.
    BIL said in a statement it will review events on a daily
basis.
    Rainbow announced earlier that it had increased its stake
in Progressive to 52 pct from 44 pct through the purchase of
9.4 mln shares at between 3.80 and 4.80 N.Z. Dlrs per share.
    BIL chief executive Paul Collins said: "All Rainbow has done
is to outlay a substantial amount of cash to purchase shares
from parties who presumably were supportive of the merger."
    Rainbow has proposed a merger with Progressive to form a
new company, <Astral Pacific Corp Ltd>. Under the merger,
shareholders in both Progressive and Rainbow will be issued
shares in the new company on a one-for-one basis.
    "Quite simply, Rainbow should now bid for the balance of
Progressive Enterprises at 4.80 N.Z. Dlrs per share," Collins
said.


.I 14799
.C
earn
.W
AVATAR HOLDINGS INC <AVTR> YEAR NET.
    CORAL GABLES, Fla., March 25 -
    Oper shr 32 cts vs seven cts
    Oper net 2,599,000 vs 550,000
    Revs 94.4 mln vs 69.4 mln
    NOTE: Net excludes tax credits of 1,405,000 dlrs vs
3,538,000 dlrs.


.I 14800
.C
crude
.W
NORWAY OFFERS 11TH LICENCE ROUND OFFSHORE BLOCKS.
    OSLO, March 25 - Norway has offered 10 new offshore blocks
to foreign and domestic applicants in the first phase of the
country's eleventh concession round, government officials said.
    Company shares in each of the licences proposed by the Oil
and Energy Ministry are not final. The ministry has given the
companies 10 days to accept or decline the proposed shares.
    French companies Ste Nationale Elf Aquitaine <ELFP.PA> and
Total Cie Francaise des Petroles <TPN.PA>, which were expected
to receive operatorships following France's agreement last
autumn to purchase gas from Norway's Troll field, were not
offered operatorships in this round, industry sources said.
    Three eleventh round blocks were awarded in the
Haltenbanken exploration tract off central Norway, including
the Smoerbukk West field where Den Norske Stats Oljeselskap A/S
<STAT.OL> (Statoil) was appointed operator.
    Statoil will share the licence with subsidiaries of U.S.
Oil companies Tenneco Inc <TGT.N> and Texas Eastern Corp
<TET.N> and the Italian oil company <Agip SpA>'s Norwegian
subsidiary.
    E.I. Du Pont de Nemours <DD.N> subsidiary Conoco Norway Inc
was named operator on Haltenbanken block 6406/8 and will share
the licence with Statoil.
    Norsk Hydro A/S <NHY.OL> will operate nearby block 6407/10
with partners Statoil, Norsk Agip A/S, Royal Dutch/Shell
Group's <RD.AS> A/S Norske Shell and <Deminex> unit Deminex
(Norge) A/S.
    Statoil has been offered the operatorship on a new block in
the relatively unexplored Moere South exploration area south of
Haltenbanken, with A/S Norske Shell, Texas Eastern and
<Petroleo Brasileiro SA> (Petrobras) also offered stakes in the
block.
    Norwegian companies landed operatorships on all six blocks
opened in the Barents Sea area off northern Norway. The blocks
were awarded in three licenses, each covering two blocks.
    Statoil will head exploration on blocks 7224/7 and 7224/8,
sharing the licence with Exxon Corp's <XON.N> Norwegian
subsidiary Esso Norge A/S, The British Petroleum Co PLC's
<BP.L> BP Petroleum Development (Norway) Ltd, Shell, Norsk
Hydro and Saga Petroleum A/S <SAGP.OL>.
    Blocks 7219/9 and 7220/7 were awarded to Norsk Hydro, the
operator, Statoil, Mobil Corp's <MOB.N> Mobil Exploration
Norway, Petrofina SA's <PETB.BR> Norske Fina A/S and BP.
    The third Barents Sea licence, covering blocks 7124/3 and
7125/1, went to Saga Petroleum A/S, the operator, Statoil,
Atlantic Richfield Co's <ARC.N> Arco Norge A/S, Total Marine
Norge A/S and Amerada Hess Corp <AHC.N>.
    The oil ministry withheld awards on four strategic blocks
included in the eleventh round's second phase.
    The ministry is accepting applications for phase two blocks
until early April and the awards will likely be announced this
summer, officials said.


.I 14801
.C
earn
.W
PERCEPTION TECHNOLOGY <PCEP> TO TAKE CHARGE.
    CANTON, Mass., March 25 - Perception Technology Corp said
it expects to take a charge of about 686,000 dlrs or 19 cts per
share against earnings for the second quarter ended March 31
due to the bankruptcy proceeding of customer T.C. of New York
Inc.
    Perception said it has outstanding lease receivables from
T.C. of about 2,480,000 dlrs.
    It said the exact amnount of the charge will depend on the
extent of recovery of the leased equipment involved and on
arrangements that might be made with the bankruptcy court on
the equipment.


.I 14803
.C
dlr;money-fx;
.W
****** Bundesbank buys dollars for yen - Frankfurt dealers.
Blah blah blah.

.I 14804
.C
acq
.W
REUTERS TO BUY I P SHARP OF CANADA.
    LONDON, March 25 - Reuters Holdings Plc <RTRS.L> said it
had agreed in principle to buy <I P Sharp Associates Ltd> of
Toronto for 30.4 mln stg.
    Sharp is a time-sharing network and database company
specialising in finance, economics, energy and aviation. It
operates a global packet-switching network and global limits
systems for foreign exchange trading.
    Sharp shareholders will be offered cash, shares or a
mixture of the two in settlement. The acquisition, which is
subject to Canadian government approval, would be through
amalgamation into a specially-created company.
    Reuters said it had been given options by a number of Sharp
shareholders covering 67 pct of the common stock pending
completion of a Reuters review of the company.
    Sharp operates 38 offices in 20 countries. In 1986 it
reported revenue of 55 mln Canadian dlrs with a pretax loss of
1.6 mln compared with a 1.9 mln profit in 1985.
    However, Sharp said that internal accounts showed the
company was in profit in the first two months of 1987.
    End-1986 net assets totalled 11.85 mln dlrs.
    A Reuters statement said the acquisition would fit
perfectly into its package for the banking and securities
industries.


.I 14805
.C
earn
.W
HORIZON BANK <HRZB> SETS STOCK SPLIT.
    BELLINGHAM, Wash., March 25 - Horizon Bank said its board
declared a three-for-two stock split, payable April 21 to
holders of record April Seven.


.I 14806
.C
acq
.W
WASTE <WMX> ENDS OFFER FOR CHEMLAWN <CHEM>.
    OAK BROOK, ILL., March 25 - Waste Management Inc said its
wholly owned subsidiary, WMX Acquisition Corp, ended its tender
offer to buy shares of ChemLawn Corp at 35 dlrs a share.
    All shares tendered to Waste Management will be returned to
shareholders as soon as practical, it said.
    Earlier this week, ChemLawn agreed to accept a merger
proposal at 36.50 dlrs a share from Ecolab Inc in a transaction
valued at about 370 mln dlrs.


.I 14808
.C
earn
.W
<ACKERLY COMMUNICATIONS INC> YEAR LOSS.
    SEATTLE, March 25 -
    Shr loss 1.44 dlrs vs loss 1.50 dlrs
    Net loss 10.1 mln vs loss 8,866,000
    Revs 122.3 mln vs 112.5 mln
    Avg shrs 7,671,855 vs 6,520,928


.I 14809
.C
acq
.W
UNITED MEDICAL <UM> TO SELL UNIT.
    HADDONFIELD, N.J., March 25 - United Medical Corp said it
has reached a definitive agreement to sell its hospital
distribution unit to <Myriad Group Inc> for undisclosed terms,
with closing expected in the next several weeks.


.I 14814
.C
crude
.W
THATCHER DEFENDS UK OIL POLICY IN SAUDI INTERVIEW.
    JEDDAH, March 25 - British Prime Minister Margaret Thatcher
denied in an interview published in Saudi Arabia today that her
government's oil policy contributed to weakness in world oil
prices.
    She said the government was determined not to intervene to
influence production decisions by oil companies operating in
the North Sea.
    "We believe these must be a matter for the commercial
judgment of the oil companies," she told the Arabic language
daily al-Sharq al-Awsat in an interview coinciding with a visit
to London by King Fahd of Saudi Arabia.
    Thatcher said this policy had not contributed to the fall
in oil prices as North Sea production was now about the same as
in 1984 when prices were close to 30 dlrs a barrel.
    British production was on a plateau and was unlikely to
increase in the future, she said.
    "We naturally share the concern of Saudi Arabia and other
OPEC members about the harmful effects of oil market volatility
for both producer and consumer countries," Thatcher said.
    "On our part, we are careful to avoid any actions which
might add to such volatility."


.I 14815
.C
cpi
.W
MARCH PRICES FELL IN GERMAN STATE ON YEAR-AGO.
    DUESSELDORF, March 25 - The cost of living in North
Rhine-Westphalia, Germany's most populous state, fell 0.1 pct
in the month to mid-March to stand 0.5 pct lower than at the
same time a year earlier, the regional statistics office said.
    Prices had risen 0.3 pct in the month to mid-February but
had fallen 0.7 pct year-on-year.
    The regional figures are considered a good guide to
national inflation trends. The Federal Statistics Office is due
to publish provisional national figures for March by the end of
this month.


.I 14816
.C
dlr;money-fx;
.W
BUNDESBANK BUYS DOLLARS IN FRANKFURT - DEALERS.
    FRANKFURT, March 25 - The Bundesbank bought large amounts
of dollars for yen in an apparent attempt to hold the dollar
above 149 yen, dealers said.
    The dollar intervention was in concert with some other
central banks, they said.
    Dealers said the Bank of Japan and Bank of England
supported the dollar against the yen earlier today and that
these two banks and the U.S. Federal Reserve were also active
yesterday.
    The Bundesbank declined to comment on the dealers' remarks.
    Dealers said the intervention underlined the determination
of central banks to keep currencies within recent ranges
following last month's agreement in Paris by six leading
countries to foster currency stability.
    One dealer said he had been repeatedly in contact with the
Bundesbank during the morning to see if it wanted to buy
dollars after the Japanese and U.K. Central bank moves.
    He said the Bundesbank told him it was observing the
situation to see if it should intervene in consultation with
other central banks.
    Since the Paris agreement on February 22 the dollar had
until yesterday traded in a 1.8150-1.8700 mark range, and above
150 yen, with traders reluctant to push the dollar down to test
central banks' resolve to defend currency stability.
    But the test came this week with the dollar falling below
1.81 marks and 150 yen. Dealers said a reviving trade dispute
between Washington and Tokyo and growing sentiment that the
dollar would have to fall further to narrow the obstinate U.S.
Trade deficit were behind the weakness.
    This week's intervention showed central banks were prepared
to cooperate to defend the Paris pact, dealers said.
    Dealers said it was significant the West German and British
central banks were supporting the dollar against the yen.
    That showed the pact involved multilateral cooperation by
central banks to foster currency stability, they said.
    But it was unclear how such cooperation was being arranged
and how frequent consultations between central banks were.


.I 14817
.C
acq
.W
CROSSLAND SAVINGS <CRLD>ACQUIRES WESTERN SAVINGS.
    NEW YORK, March 25 - CrossLand Savings FSB said it has
acquired Western Savings and Loand Co with the assistance of
the Federal Savings and Loan Insurance Corp.
    CrossLand said Salt Lake City based Western has been
combined with its two Florida-based thrift subsidiaries. The
parent company contributed 50 mln dlrs in cash to the resulting
1.7 billion dlr asset subsidiary which will operate under the
name CrossLand Savings FSB with headquarters in Salt Lake City.
    CrossLand said Western, with assets of 400 mln dlrs,
operated 13 branch offices in the states of California, Oregon,
Utah and Washington.
    To facilitate the acquisition, CrossLand said, Western was
converted from a mutual to a stock association in a voluntary
supervisory conversion. Crossland and the FSLIC executived an
assistance agreement indemnifying CrossLand from certain losses
that could occur in connection with Western's loan portfolio.
    The company said James J. Heagerty, chairman and chief
executive officer of CrossLand Savings FSLA in Bradenton, Fla.,
will serve in that capacity for the new subsidiary resulting
from the merger.
    Western's president, Christopher J. Sumner, will be
president of the combined unit, CrossLand said.


.I 14820
.C
money-fx
.W
BANK OF ENGLAND DRAINS MONEY MARKET LIQUIDITY.
    LONDON, March 25 - The Bank of England said it drained
liquidity from the money market when it sold 167 mln stg of
treasury bills due March 27 at rates between 9-9/16 and 10 pct.
    Earlier, the bank estimated a surplus of around 250 mln stg
in the system today.


.I 14822
.C
earn
.W
VICORP RESTAURANTS INC <VRES> 1ST QTR FEB 15 NET.
    DENVER, March 25 -
    Shr profit 1.17 dlrs vs loss 12 cts
    Net profit 11.3 mln vs loss 1,038,000
    Revs 104.6 mln vs 128.7 mln
    NOTE: Current year net includes gain 9,500,000 dlrs from
the sale of its specialty restaurants unit, charge 1,200,000
dlrs from addition to insurance reserves, 4,600,000 dlr tax
credit and 660,000 dlr charge from debt repayment.


.I 14823
.C
acq
.W
COMMERZBANK TO ACQUIRE AND FLOAT LINOTYPE.
    FRANKFURT, March 25 - Commerzbank AG <CBKG.F> said it will
acquire <Linotype GmbH>, Europe's largest manufacturer of
type-setting and printing communications technology from Allied
Signal Inc <ALD.N> and float off the shares in the company.
    Commerzbank declined to say how much it had paid for
Linotype.
    Linotype's group turnover in 1986 rose 15 pct to more than
500 mln marks, the bank said. The group's net return on capital
was seven pct.


.I 14825
.C
sugar
.W
******EC EXPORT LICENCES FOR 59,000 TONNES WHITE  SUGAR AT REBATE 45.678 ECUS - FRENCH TRADERS.
Blah blah blah.

.I 14826
.C
sugar
.W
U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES.
    LONDON, March 25 - A total 59,000 tonnes of current series
white sugar received export rebates of a maximum 45.678
European Currency Units (Ecus) per 100 kilos at today's
European Community (EC) tender, the U.K. Intervention Board
said.
    Out of this, traders in West Germany received 34,750
tonnes, in the U.K. 13,000, in Denmark 7,250 and in France
4,000 tonnes, it added.
    Earlier today, London traders had expected the subsidy for
the current season whites campaign for licences to end-Aug to
be more than 45.00 Ecus per 100 kilos but Paris traders were
more precise by forecasting a rebate level of 45.75 to 46.0
Ecus.
    London traders were also reluctant earlier to predict the
likely tonnage to be authorised for export in view of the
on-going dispute between the Commission and European producers
over the threatened action by the producers to move over
800,000 tonnes to intervention.
    Last week saw 60,500 tonnes whites athuorised for export at
a maximum rebate of 44.819 Ecus per 100 kilos.


.I 14827
.C
earn
.W
PIONEER-STANDARD ELECTRONICS INC <PIOS> PAYOUT.
    CLEVELAND, March 25 -
    Qtly div three cts vs three cts prior
    Pay May One
    Record April Eight


.I 14830
.C
trade
.W
******HOUSE WAYS AND MEANS CMTE FINISHES WORK ON BILL TO TOUGHEN TRADE LAWS.
Blah blah blah.

.I 14832
.C
earn
.W
FABRI-CENTERS <FCA> 4TH QTR ENDS JAN 31 NET.
    CLEVELAND, March 25 -
    Shr 40 cts vs 41 cts
    Net 1,979,000 vs 2,101,000
    Revs 67.7 mln vs 63.6 mln
    12 mths
    Shr 36 cts vs 20 cts
    Net 1,798,000 vs 1,034,000
    Revs 239.4 mln vs 233.2 mln


.I 14833
.C
earn
.W
TSENG LABORATORIES INC <TSNG> 4TH QTR NET.
    NEWTOWN, Pa., March 25 -
    Shr profit one ct vs loss nil
    Net profit 200,052 vs loss 56,782
    Revs 2,394,198 vs 706,393
    Avg shrs 17.8 mln vs 19.8 mln
    Year
    Shr profit one ct vs profit one ct
    Net profit 258,125 vs profit 164,553
    Revs 4,225,731 vs 3,027,892
    Avg shrs 17.9 mln vs 19.5 mln


.I 14834
.C
earn
.W
PARK ELECTROCHEMICAL CORP <PKE> SETS PAYOUT.
    LAKE SUCCESS, N.Y., March 25 -
    Qtly div three cts vs three cts prior
    Pay May 20
    Record April 20


.I 14835
.C
ship
.W
BRAZIL SEAMEN SAY STRIKE NEAR END.
    SAO PAULO, March 25 - About half of Brazil's 40,000 seamen
have returned to work after accords with 22 companies, and the
national strike which began on February 27 looks close to
ending, a union spokesman said.
    The spokesman, speaking from strike headquarters in Rio de
Janeiro, estimated that 80 ships were strike-bound.
    The seamen have settled for 120 pct pay increases with the
individual companies but are still discussing the issue of
overtime payments with the shipowners' association, Syndarma.


.I 14836
.C
trade
.W
KEY U.S. HOUSE PANEL FINISHES MAJOR TRADE BILL.
    WASHINGTON, March 25 - The House Ways and Means Committee
completed action on legislation to toughen U.S. trade laws,
chairman Dan Rostenkowski said.
    The committee's consideration of one of the most
controversial provisions, a plan to force major trade surplus
countries to cut their trade imbalance with the United States,
was deferred until the full House considers the trade bill, its
sponsor Rep. Richard Gephardt said.
    Gephardt, a Missouri Democrat, told Reuters he was not
certain the exact form his trade surplus reduction proposal
would take. Last year the House approved his plan to force a 10
pct surplus cutback each year for four years, by countries such
as Japan.
    The Ways and Means Committess' trade bill forces President
Reagan to retaliate against unfair trade practices that violate
international trade agreements but it allows him to wave
retaliatory tariffs or quotas if the action would hurt the U.S.
economy.
    The trade bill gives U.S. Trade Representative Clayton
Yeutter more authority in trade negotiations and in decisions
to grant domestic industries import relief.
    It also gives him authority to decide whether foreign trade
practices are unfair and violate U.S. trading rights. These
powers are currently held by President Reagan.
    The administration has strongly objected to this transfer
of authority from Reagan to Yeutter.
    The bill also extends U.S. authority to negotiate
multilateral trade agreements. The bill will be wrapped into
other trade legislation and voted on in the House in April.


.I 14837
.C
earn
.W
RUSS TOGS INC <RTS> 4TH QTR JAN 31 NET.
    NEW YORK, March 25 -
    Shr 82 cts vs 76 cts
    Net 4,200,000 vs 3,954,000
    Sales 58.7 mln vs 60.6 mln
    Year
    Oper shr 2.68 dlrs vs 2.47 dlrs
    Oper net 13.8 mln vs 13.0 mln
    Sales 274.3 mln vs 276.8 mln
    NOTE: Prior year net excludes loss 1,120,000 dlrs from
discontinued operations and loss on disposal of 922,000 dlrs.


.I 14845
.C
acq
.W
THERMO PROCESS <TPSI> ACQUISITION TERMINATED.
    WALTHAM, Mass., March 25 - Thermo Process Systems Inc said
its proposed acquisition of the Surface Combustion Division of
privately-held <Midland-Ross Corp> has been terminated because
mutually satisfactory terms could not be established.


.I 14847
.C
alum
.W
NORANDA RAISES PRIMARY ALUMINUM PRICES.
    New York, March 25 - Noranda Aluminum Inc. said it has
increased its primary aluminum prices by two cents a lb,
effective with new orders as of March 25 and all shipments
beginning May 1.
    The new price for unalloyed ingot will be 64.5 cents a lb
while the new price for extrusion billet will be 72.5 cents a
lb.


.I 14848
.C
tea;orange;
.W
SOVIET PAPER DETAILS GEORGIAN FLOOD DAMAGE.
    MOSCOW, March 25 - Floods and avalanches killed 110 people
and caused around 350 mln roubles worth of damage in the
southern Soviet republic of Georgia earlier this year, the
government daily Izvestia said.
    Some 80,000 hectares of agricultural land and gardens had
been inundated, damaging tea plantations and orange groves, the
newspaper said. It added that spring sowing in southern parts
of the country was some two weeks behind schedule because of
the late thaw but gave no precise crop estimates.
    In the most detailed report to date on the heavy snows in
January and floods in February, Izvestia said 8,200 people had
been evacuated from mountain areas, 4,500 houses had been
damaged and hundreds of kilometres of roads and power lines had
been destroyed.
    A separate article in the daily warned that a sudden thaw
was expected shortly in the Ukraine and southern parts of
Russia, which experienced record snows this winter.
    Preventive measures have already been taken in some areas
including the evacuation of cattle.


.I 14849
.C
earn
.W
UTILICORP <UCU> SEES HIGHER 1987 FIRST QUARTER.
    SAN FRANCISCO, CALIF., March 25 - Utilicorp United Corp
said it expects to report 1987 first quarter earnings of about
12 mln dlrs or about 1.12 dlrs a share and revenues of about
190 mln dlrs.
    In the comparable quarter a year ago, Utilicorp earned 8.5
mln dlrs or 87 cts on revenues of 203 mln dlrs.
    There are 9.6 mln shares outstanding this year, up from the
8.5 mln shares in 1986, Utilicorp's president Richard Green
told financial analysts here.
    First quarter 1987 results include one month contribution
of West Virginia Power, which became a division on March 1,
1987, Green said in remarks prepared for delivery to analysts.
    Higher earnings for the period reflected reduced operating
and maintenenace expenses and about 10 mln dlrs in rate
increases in Iowa, Minnesota, Kansas and Colorado, he said.
    However, Utilicorp's Missouri Public Service division is
experiencing the effect of a 5.9 pct rate reduction authorized
in September 1986, he noted.
    Of Utilicorp's total revenues expected for the 1987 first
quarter, about 43 mln dlrs will be derived from electric
operations and about 147 mln dlrs will come from gas
operations, he said.
    Operating income derived from electric operations in the
first three months of 1987 is estimated to be eight mln dlrs,
while the contribution from gas operations will be about 10 mln
dlrs, Green said.
    Green told analysts that Utilicorp received regulatory
approval from various states and the Federal Energy Regulatory
Commission to reincorporate in Delaware, effective April one.
    Utilicorp signed an agreement with Cominco Ltd of Vancouver
to extend the deadline to May 31, 1987, for completion of the
company's purchase of West Kootenay Power and Light of British
Columbia, due to a longer than expected regulatory approval
process, he said.
    Hearings were completed in February and a decision by the
British Columbia Utilities Commission on the 60 mln dlrs
purchase by Utilicorp is pending, he said.


.I 14851
.C
earn
.W
TSENG <TSNG> SEES SALES INCREASE FIRST QTR 1987.
    NEWTON, Pa., March 25 - Tseng Laboratories Inc said it
expects first quarter 1987 sales to exceed total sales for the
entire 1986 year, and said it expects earnings for the quarter
to grow at a faster rate than sales.
    Tseng posted total revenues for 1986 of 4,255,731, and net
income of 258,125, or 14 cts per share.
    Jack Tseng, president of the company, attributed the high
expectations to increased orders from major costomers, as well
as accelerated business from its growing reseller network.
    Tseng posted first quarter 1986 sales of 549,950, and net
income of 19,163, the company said.


.I 14853
.C
acq
.W
STOCKHOLDER SYSTEMS <SSIAA> MAKES ACQUISITION.
    ATLANTA, March 25 - Stockholder Systems Inc said it has
agreed in principle to acquire privately-held Software Concepts
Inc, which provides software for check processing, mortgage
application processing and safe deposit box accounting, for
undisclosed terms.
    Software Concepts had revenues of about 3,200,000 dlrs for
the year ended June 30.


.I 14854
.C
earn
.W
CONCEPT INC <CCPT> 2ND QTR FEB 28 NET.
    CLEARWATER, Fla., March 25 -
    Shr 11 cts vs five cts
    Net 656,000 vs 314,000
    Sales 8,868,000 vs 6,499,000
    Avg shrs 5,823,000 vs 5,705,000
    1st half
    Shr 22 cts vs 13 cts
    Net 1,296,000 vs 795,000
    Sales 17.3 mln vs 13.5 mln
    Avg shrs 5,809,000 vs 5,973,000
    NOTE: Share adjusted for five-for-four split in February
1987.


.I 14855
.C
earn
.W
LIFE OF INDIANA CORP <LIFI> 4TH QTR LOSS.
    INDIANAPOLIS, March 25 -
    Shr loss two cts vs profit six cts
    Net loss 103,000 vs profit 319,000
    Revs 4,357,000 vs 6,494,000
    Avg shrs 5,415,185 vs 5,646,185
    Year
    Shr profit 22 cts vs profit 10 cts
    Net profit 1,236,000 vs profit 570,000
    Revs 22.2 mln vs 24.8 mln
    Avg shrs 5,638,596 vs 5,646,185
    NOTE: 1986 net includes tax credits of 30,400 dlrs in
quartger and 58,000 dlrs in year.


.I 14856
.C
earn
.W
B.F. SAUL REAL ESTATE INVESTMENT <BFS> PAYOUT.
    CHEVY CHASE, Md., March 25 -
    Qtly div five cts vs five cts prior
    Pay April 30
    Record April 10
    NOTE: B.F. Saul Real Estate Investment Trust.


.I 14857
.C
rand
.W
SOUTH AFRICA PROBLEMS REMAIN DESPITE DEBT PACT.
    By Robert Ricci, Reuters
    JOHANNESBURG, March 25 - South Africa's new foreign debt
agreement sparked a rally in local financial markets, but
bankers and economists said the pact removes only one source of
anxiety from a still depressed economy.
    "We have not gone from 'no confidence' to 'full confidence'
yet," commented one banker, who saw the agreement as having
marginal influence on fundamental economic problems.
    Money market analysts cited the debt renegotiation as the
main impetus behind increases today in both the commercial and
financial rand.
    The commercial rand, used for current account transactions,
rose 0.5 cts to 49 U.S. Cts while the financial rand jumped
nearly two cts to 33 U.S. Cts.
    All equity and fixed investment flows of foreigners take
place through the financial rand, which is considered the main
barometer of South Africa's attractiveness to overseas
investors.
    Analysts predicted the debt arrangement plus further gains
in the gold price could push the commercial rand over 50 U.S.
Cts and the financial rand to 35 cents in the next few weeks.
    They said the financial rand in particular was being driven
by a tentative provision in the new debt agreement that could
favorably affect the currency.
    Foreign creditors may get permission to convert loan
balances and short-term claims into equity investments in South
Africa.
    Finance Minister Barend du Plessis said the Reserve Bank
was "investigating the implications of such conversions in light
of terms and restrictions of the financial rand system."
    Du Plessis in disclosing the new agreement last night said
the recent sharp rise in the financial rand was an example that
"some foreign investors are again taking a more realistic view
of South Africa."
    Terms of the debt agreement call for South Africa to repay
1.42 billion dlrs of 13 billion dlrs of frozen debt over the
next three years. The agreement extends a standstill
arrangement, expiring June 30, that has been in place since
August, 1985.
    Bankers said the repayment amounts essentially confirmed
their private estimates and could be comfortably met by the
monetary authorities.
    "They (creditors) asked for the maximum amount and we
offered the minimum," said one banking source, reacting to
reports from London that creditors were hoping for larger
repayments.
    Reserve Bank governor Gerhard de Kock said South Africa
should have "no difficulty whatsoever" with the terms.
    Economists said the debt agreement would have no
significant impact on economic problems continuing to face
South Africa including high rates of inflation and
unemployment, labour unrest and political uncertainty.
    Johannesburg Stock Exchange president Tony Norton, speaking
yesterday before the debt agreement, said the economy was "in
bad shape" and there was "an awful lot of talk but little action"
to cure serious problems.


.I 14858
.C
earn
.W
MAYTAG <MYG> SEES CAPITAL SPENDING UP IN 1987.
    NEWTON, Iowa, March 25 - Maytag Co said it expects capital
spending in 1987 to increase to about 60 mln dlrs from 49 mln
dlrs in 1986.
    Maytag chairman and chief executive officer Daniel Krumm
said the company plans a "significant" investment at its
Admiral refrigerator plant in Galesburg, Ill., as well as
continued spending for product improvement and increased
efficiency at other Maytag facilities.
    Earlier, the company reported 1986 net income of 111.2 mln
dlrs, or 2.57 per share, versus net income of 124.9 mln dlrs,
or 2.89 dlrs a share, in 1985.


.I 14859
.C
acq
.W
TRAVELERS <TIC> UNIT TO BUY REALTY DIVISIONS.
    CHERRY HILL, March 25 - The Travelers Corp's Travelers
Mortgage Services said it signed a letter of intent to buy two
subsidiaries of the privately-held <Equitable Life Assurance
Society of the U.S.>
    The company said it plans to acquire the Equitable
Relocation Management Corp and the Equitable Realty Network
Inc.
    The company said the acquisitions will give it broader
distribution of its corporate relocation service and mortgage
programs.


.I 14860
.C
earn
.W
COMMUNICATIONS AND CABLE INC <CCAB> 1ST QTR NET.
    WEST PALM BEACH, Fla., March 25 -
    Oper shr seven cts vs loss nil
    Oper net 988,000 vs loss 52,000
    Revs 2,267,000 vs 791,000
    NOTE: Net excludes gains from discontinued operations of
65,000 dlrs vs 75,000 dlrs.
    Current year net includes gain 1,025,000 dlrs from sale of
cellular telephone investment.
    Prior year figures restated for discontinued operations.


.I 14864
.C
acq
.W
DALLAS INVESTOR CUTS STAKE IN MCDERMOTT (MDR).
    WASHINGTON, March 25 - A group led by Dallas investor
Harold Simmons told the Securities and Exchange Commission it
had reduced its stake in McDermott International Inc by one
pct, to under five pct.
    The group had said in a March 10 filing, announcing
acquisition of 5.4 pct of the firm's stock, that it might
consider seeking control of the company.


.I 14866
.C
platinum
.W
INTN'L PLATINUM, DEGUSSA IN JOINT VENTURE TALKS.
    TORONTO, March 25 - International Platinum Corp said it
signed a letter of intent to enter into further negotiations on
a joint venture exploration agreement with Degussa A.G., of
West Germany, regarding several North American platinum
properties.
    Conclusion of the agreement is subject to completion of
further detailed examination by Degussa, as well as board and
regulatory approvals.
    Under terms of the letter of intent, Degussa would
contribute substantially to a three year exploration budget of
4.5 mln dlrs in return for a 50 pct interest in the venture.
    Degussa's contribution to the exploration budget will be
based on it matching International Platinum's past exploration
and acquisition costs, estimated at about two mln dlrs, and
then contributing on a pro rata basis, International Platinum
said.
    Degussa's contribution would provide a major portion of
International Platinum's exploration budget, especially during
the first and second year of the proposed joint venture, the
company said.


.I 14867
.C
earn
.W
WESTWOOD ONE INC <WONE> 1ST QWTR FEB 28 NET.
    LOS ANGELES, March 25 -
    Shr 12 cts vs eight cts
    Net 1,440,000 vs 830,000
    Revs 15.9 mln vs 11.2 mln
    Avg shrs 12,342,000 vs 10,826,000


.I 14869
.C
ship
.W
IRAN SAYS HAS BETTER WEAPONS THAN SILKWORM.
    LONDON, March 25 - Iranian Prime Minister Mir-Hossein
Mousavi said Iran had "more effective" missiles at its disposal
than the shore-to-sea missiles which had provoked U.S. Concern,
Tehran Radio reported.
    A U.S. State Department spokesman said last week Iran had
acquired Chinese-made Silkworm missiles which posed a greater
threat to shipping in the Gulf than the weapons previously
used.
    Tehran Radio, monitored by the British Broadcasting Corp,
quoted Mousavi as saying that Tehran officially announced after
its forces overran southern Iraq's Faw peninsula in February
last year that it had shore-to-sea missiles.
    "The fact that the Americans, after so much delay, are now
thinking of expressing their concern with panic is because
Reagan needs this sensation now," said Mousavi, speaking after a
cabinet meeting in Tehran.
    "We also announce today that these missiles are not the
limit of our war capabilities in the Gulf," he added.
    Mousavi said the security of the Gulf region had nothing to
do with the U.S. But Iran would resort to any action to defend
the Gulf, "even those actions which are not thought probable by
Westerners."


.I 14870
.C
sugar
.W
EC COMMISSION DETAILS SUGAR TENDER.
    BRUSSELS, March 25 - The European Community Commission
confirmed it granted export licences for 59,000 tonnes of
current series white sugar at a maximum export rebate of 45.678
European Currency Units (ECUs) per 100 kilos.
    Out of this, traders in West Germany received 34,750
tonnes, in the U.K. 13,000, in Denmark 7,250 tonnes and in
France 4,000 tonnes.


.I 14873
.C
earn
.W
TRICENTROL TO CONCENTRATE ON PROVEN RESERVES.
    LONDON, March 25 - Tricentrol Plc <TCT.L> said it will
concentrate most of its efforts this year on its proven oil and
gas reserves in order to maximise benefits to shareholders in
the mid to long-term.
    It said in a statement "We are confident that substantial
development funds will be available to Tricentrol and that we
will be able to minimise further disposal of our interests."
    Tricentrol wrote off 57.5 mln stg on the reorganisation of
its North American operations last year, when oil prices
plunged. The group incurred a 1986 net loss of 3.7 mln stg
against a 25.4 mln profit the previous year.


.I 14875
.C
earn
.W
BROOKLYN UNION GAS CO <BU> SETS PAYOUT.
    NEW YORK, March 25 -
    Qtrly div 41.5 cts vs 41.5 cts prior
    Pay May One
    Record April 6


.I 14877
.C
ship
.W
ARGENTINE PORT WORKERS TAKE INDUSTRIAL ACTION.
    BUENOS AIRES, March 25 - Argentine port workers began an
indefinite protest against safety conditions at the port of
Buenos Aires, stopping work for one hour per shift, a press
spokesman said.
    He said three port workers had died over the last month in
accidents. He said the decision to take action was made after a
port worker died yesterday after being electrocuted.


.I 14878
.C
acq
.W
***NOVAMIN SAYS IT RECEIVED PROPOSED TAKEOVER BID FROM BREAKWATER.
Blah blah blah.

.I 14882
.C
money-fx;interest;
.W
FED EXPECTED TO ADD RESERVES IN MARKET.
     NEW YORK, March 25 - The Federal Reserve will probably
intervene in the government securities market to add reserves
today, economists said.
    They expected the Fed will supply temporary reserves
indirectly via 1.5 to two billion dlrs of customer repurchase
agreements.
    Fed funds hovered at a relatively high 6-1/4 pct this
morning after averaging 6.14 pct on Tuesday.
    Early this afternoon the Fed also is expected to supply
reserves permanently, effective Thursday, by offering to buy
all maturities of Treasury bills.


.I 14883
.C
ship;sugar;
.W
INDIA REPORTED BUYING TWO WHITE SUGAR CARGOES.
    LONDON, March 25 - India is reported to have bought two
white sugar cargoes for April/May shipment at its tender today
near 227 dlrs a tonne cost and freight and could be seeking a
third cargo, traders said.
    A British operator is believed to have sold one of the
cargoes, while an Austrian concern is thought to have featured
in the second cargo sale, they said.


.I 14884
.C
acq
.W
NOVAMIN IN PROPOSED BUYOUT BY BREAWATER <BWRLF>.
    TORONTO, March 25 - <Novamin Inc> said it received a
proposed takeover offer from Breakwater Resources Ltd involving
a swap of one Breakwater share for two Novamin common shares.
    It said the proposal also called for conversion of
outstanding Novamin warrants into Breakwater common shares on
the same basis, provided the exercise price was paid by the
warrant holders.
    Novamin, a mineral exploration company, said directors
would meet next Tuesday to deal with the proposal, which, it
said, was subject to approval by Breakwater directors.


.I 14885
.C
earn
.W
LILLY INDUSTRIAL COATINGS INC <LICIA> 1ST QTR.
    INDIANAPOLIS, March 25 - Feb 28 end
    Shr 18 cts vs 13 cts
    Net 1,541,000 vs 1,122,000
    Sales 36.7 mln vs 33.5 mln
    Avg shrs 8,517,000 vs 8,441,000
    NOTE: Share adjusted for five pct stock dividend in August
1986.


.I 14886
.C
acq
.W
COMMONWEALTY REALTY <CRTYZ>, BAY <BAY> END TALKS.
    PRINCETON, N.J., March 215 - Commonwealth Realty Trust said
preliminary merger talks with Bay Financial Corp have been
terminated due to a failure to agree on terms.


.I 14887
.C
earn
.W
MET-PRO CORP <MPR> 4TH QTR ENDS JAN 31 NET.
    PHILADELPHIA, March 25 -
    Shr 19 cts vs 18 cts
    Net 362,692 vs 347,868
    Revs 6,311,808 vs 5,827,538
    12 mths
    Shr 60 cts vs 80 cts
    Net 1,152,746 vs 1,534,503
    Revs 24.7 mln vs 25.2 mln


.I 14890
.C
earn
.W
CENTRAL MAINE POWER CO <CTP> SETS QUARTERLY.
    AUGUSTA, Maine, March 25 -
    Qtly div 35 cts vs 35 cts prior
    Pay April 30
    Record April 10


.I 14892
.C
earn
.W
PEP BOYS <PBY> SETS SPLIT, RAISES QUARTERLY.
    PHILADELPHIA, March 25 - Pep Boys - Manny, Moe and Jack Inc
said its board declared a three-for-one stock split and raised
the quarterly dividend to six cts presplit from 5-1/2 cts.
    Both are payable July 27 to holders of record July One and
the
    The split is subject to shareholder approval at the May 18
annual meeting of an increase in authorized common shares to
500 mln from 40 mln, the company said.


.I 14893
.C
earn
.W
PEP BOYS - MANNY, MOE AND JACK INC <PBY> 4TH QTR.
    PHILADELPHIA, March 25 - Jan 31 end
    Shr 45 cts vs 37 cts
    Net 8,349,000 vs 6,187,000
    Sales 126.7 mln vs 103.7 mln
    Year
    Shr 1.55 dlrs vs 1.29 dlrs
    Net 28.1 mln vs 21.1 mln
    Sales 485.9 mln vs 388.9 mln
    NOTE: Latest year net includes three cts shr gain from sale
of assets.


.I 14894
.C
earn
.W
HOVNANIAN ENTERPRISES <HOV> EARNINGS TO RISE.
    PHOENIX, March 25 - Hovnanian Enterprises Inc said the
company's earnings for year would exceed the 1.65 dlrs a share
previously announced and could go as high as 1.75 dlrs for
fiscal year ended  Feb 28, 1987.
    The company posted net earnings of 11.5 mln dlrs, or 1.72
dlrs per share, on revenues of 199.3 mln dlrs for fiscal year
1986. These figures reflect two three-for-two stock splits in
March and August 1986.
    At the Annual Drexel Burnham Lambert Construction
Conference here, Hovnanian executive vice presidnt Ara
Hovnanian said the company expects an earnings range of between
2.35 dlrs and 2.55 dlrs per share for fiscal 1988.
    Total revenues for the year ending Feb 29, 1988, should be
between 320 mln and 350 mln, he said.


.I 14895
.C
sugar
.W
NY TRADERS SAY TURKEY MADE LARGE SUGAR PURCHASE.
    ****NEW YORK, March 25 - Turkey bought an estimated 100,000
tonnes of white sugar from three trade houses today for April
to June shipment, according to trade sources.
    They said a large U.K. trade house sold 50,000 tonnes, a
U.S. house traded 25,000 tonnes, and a Swiss-based dealer house
25,000 tonnes.
    Price details were unclear but reports this morning
suggested that Turkey was offered sugar at prices ranging down
to 212 dlrs a tonne, c and f basis.


.I 14898
.C
dlr;money-fx;
.W
******JOHNSON SAYS FED'S ACTIONS YESTERDAY MEANT TO STABILIZE DOLLAR AT CURRENT LEVELS.
Blah blah blah.

.I 14899
.C
earn
.W
SUNSTAR FOODS INC <SUNF> 2ND QTR FEB 28 NET.
    MINNEAPOLIS, MINN., March 25 -
    Shr 23 cts vs not reported
    Net 282,000 vs 1,000
    Sales 18.6 mln vs 18.7 mln
    Six mths
    Shr 48 cts vs 17 cts
    Net 583,000 vs 213,000
    Sales 37.8 mln vs 37.5 mln
   NOTE: 1987 six months net includes a loss from discontinued
operations equal to two cts a share.
    1986 net includes losses from discontinued operations of
four cts in the quarter and six cts in the six months.


.I 14902
.C
acq
.W
HADSON <HADS> TO ACQUIRE 85 PCT OF SEAXE <SEAX>.
    OKLAHOMA CITY, March 25 - Hadson Corp said it has signed a
definitive agreement to acquire 85 pct of the outstanding
common stock of Seaxe Energy Corp.
    The company said it will buy the 85 pct interest in Seaxe
from shareholders owning restricted or controlled shares for
less than 200,000 Hadson common shares.
    It said closing is subject to the approval of title
assignments by the French government.  Seaxe is involved in oil
and natural gas exploration and development in the Paris Basin
of France.


.I 14903
.C
acq
.W
REUTERS TO BUY I P SHARP OF CANADA.
    LONDON, March 25 - Reuters Holdings Plc <RTRS.L> said it
had agreed in principle to buy <I P Sharp Associates Ltd> of
Toronto for 30.4 mln stg.
    Sharp is a time-sharing network and database company
specialising in finance, economics, energy and aviation. It
operates a global packet-switching network and global limits
systems for foreign exchange trading.
    Sharp shareholders will be offered cash, shares or a
mixture of the two in settlement. The acquisition, which is
subject to Canadian government approval, would be through
amalgamation into a specially-created company.
    Reuters said it had been given options by a number of Sharp
shareholders covering 67 pct of the common stock pending
completion of a Reuters review of the company.
    Sharp operates 38 offices in 20 countries. In 1986 it
reported revenue of 55 mln Canadian dlrs with a pretax loss of
1.6 mln compared with a 1.9 mln profit in 1985.
    However, Sharp said that internal accounts showed the
company was in profit in the first two months of 1987.
    End-1986 net assets totalled 11.85 mln dlrs.
    A Reuters statement said the acquisition would fit
perfectly into its package for the banking and securities
industries.


.I 14904
.C
earn
.W
TCBY ENTERPRISES <TCBY> SPLITS STOCK.
    LITTLE ROCK, Ark., March 25 - TCBY Enterprises Inc said its
board has approved a three-for-two split of its common stock
with a distribution to be made on April 24 to stockholders of
record on April 9.
    The split will increase the number of outstanding shares to
over 26 mln from about 17.3 mln shares now, the company said.
    TCBY Enetrprises is a franchisor and operator of retail
stores specializing in frozen yogurt-related treats.


.I 14906
.C
earn
.W
RAYTHEON CO <RTN> SETS QUARTERLY.
    LEXINGTON, Mass., March 25 -
    Qtly div 45 cts vs 45 cts prior
    Pay April 30
    Record April 10


.I 14909
.C
earn
.W
P.H. GLATFELTER CO <GLP> INCREASES DIVIDEND.
    SPRING GROVE, Pa., March 25 - P.H. Glatfelter said its
board increased its quarterly dividend on its common stock to
14 cts per share, from 12.5 cts per share the prior quarter.
    It said the dividend is payable May 1, 1987, to
shareholders of record April 15, 1987.
    In addition, the company said it authorized the repurchase
of up to an additional one mln shares of its common stock.
    On March 27, 1985, the board had authorized the repurchase
of up to two mln shares, as adjusted for a two-for-one split,
effected in April 1986, the company said.
    The company said 521,508 shares may still be repurchased
under the 1985 authorization. It added any shares repurchased
would be added to the treasury and will be available for future
issuance.
    The company said it has no present plans to issue any of
the shares which may be repurchased. The company said it
presently has 24,614,352 common shares outstanding.


.I 14910
.C
earn
.W
LIFE OF INDIANA CORP <LIFI> 4TH QTR LOSS.
    INDIANAPOLIS, IND., March 25 - 
    Shr loss 19 cts vs profit 57 cts
    Net loss 103,005 vs profit 319,344
    Year
    Shr profit 22 cts vs profit 10 cts
    Net profit 1,236,347 vs profit 570,222


.I 14913
.C
acq
.W
CONSOLIDATED NOREX TO ACQUIRE TRIWEB RESOURCES.
    CALGARY, Alberta, March 25 - <Consolidated Norex Resources
Ltd> said it agreed to acquire all issued and outstanding
shares of Triweb Resources Ltd, a privately held oil and gas
company with land holdings and production base in Alberta and
Saskatchewan.
    The company said specific details relating to purchase
price and other terms will be released on closing of the
transaction, expected by May 15.


.I 14914
.C
sugar
.W
THAI SUGAR PRODUCTION CONTINUES HIGH IN FEB.
    LONDON, March 25 - Thai sugar production continued at a
high level in February, latest figures received by the
International Sugar Organization (ISO) show.
    The figures show stocks at end-February of 2.49 mln tonnes
raw value against 2.33 mln a year earlier. Analysts said this
was a new peak for the date.
    Production in February was 961,000 tonnes against 888,000
in February 1986 and took the Nov/Feb total for the current
crop to 2.25 mln tonnes. Production normally tails off sharply
after March, but in recent years production from March to the
end of the crop has been over 500,000 tonnes, analysts said.
    Thailand's exports in February were 32,800 tonnes and
consumption 57,800.
    Last month the Thai Agriculture Ministry said 1986/87
production was expected to fall to 2.3 mln tonnes from 2.48 mln
in 1985/86.


.I 14918
.C
acq
.W
******REICHHOLD CHEMICALS INC EXPLORING POSSIBLE SALE OF EUROPEAN SUBSIDIARY.
Blah blah blah.

.I 14919
.C
sugar
.W
NY TRADERS EXPECT CHINA TO STEP UP SUGAR BUYING.
    NEW YORK, March 25 - Trade house sources said China is
expected to step up its sugar purchases following yesterday's
steep drop in world sugar prices.
    The consensus is that the Chinese will buy between 200,000
and 400,000 tonnes of raw sugar.
    "China is short of foreign exchange and a drop in prices is
usually taken as a buying opportunity by Peking," one trader
said.
    Yesterday, prices on the New York world sugar market
plummeted by 0.58 to 0.50 cent on heavy liquidation by
speculators, disenchanted over the market's lack of rallying
power.
    Speculation is that China will need the sugar for the
May/July period.


.I 14920
.C
earn
.W
ROSS STORES INC <ROST> 4TH QTR JAN 31 LOSS.
    NEWARK, Calif., March 25 -
    Shr loss 1.30 dlrs vs profit 29 cts
    Net loss 33.4 mln vs profit 7,386,000
    Sales 168.2 mln vs 128.4 mln
    Year
    Shr loss 1.61 dlrs vs profit 30 cts
    Net loss 41.4 mln vs profit 7,055,000
    Sales 527.5 mln vs 366.7 mln
    NOTE: Latest year net both periods includes 39.4 mln dlr
provision for closing 25 underperforming stores.


.I 14924
.C
earn
.W
NAVISTAR <NAV> STILL EXPECTS HIGHER 1987 NET.
    CHICAGO, March 25 - Navistar International Corp chairman
Donald Lennox repeated that benefits from recapitalization are
likely to boost future earnings for fiscal 1987.
    Lennox told the annual meeting that future quarterly and
full year earnings from ongoing operations should be
"significantly above 1986 results."
    In his remarks, Lennox said management has no plans to
recommend reinstatement of the company's common stock dividend
in the foreseeable future.
    He said the outlook for the medium duty truck market
continues to point to little or no change. But recent order
receipts indicate a "firmer tone in the heavy duty truck
segment," which could result in a five to eight pct increase in
industry shipments for the full year, he said.
    After restructuring under the holding company format, the
company's present truck and engine subsidiary will be known as
Navistar International Transportation Corp. Neil Springer
currently president and chief operating officer of Navistar
International was named chairman of the new subsidiary.
    James Cotting, now vice chairman and chief financial
officer, was named to succeed Lennox as chairman and chief
executive officer of Navistar International Corp. Lennox will
retire March 31.
    Shareholders at the meeting approved a change in the
company's structure to a holding company format, to be
effective April 1.


.I 14926
.C
earn
.W
CORRECTED-LILLY INDUSTRIAL COATINGS INC <LICIA>.
    INDIANAPOLIS, March 25 - 1st qtr Feb 28 end
    Shr 18 cts vs 13 cts
    Net 1,541,000 vs 1,122,000
    Sales 39.7 mln vs 33.5 mln
    Avg shrs 8,517,000 vs 8,441,000
    NOTE: Share adjusted for five pct stock dividend in August
1986.
    Company corrects current year sales.


.I 14927
.C
grain;trade;
.W
U.S. SENATE PANEL APPROVES TRADE MISSION BILL.
    WASHINGTON, March 25 - The U.S. Senate Agriculture
Committee approved a bill that would establish farm trade and
aid missions to promote the use of U.S. food aid, donation,
credit and export subsidy programs by overseas customers.
    The bill, approved by voice vote, would establish trade
missions made up of representatives of the Departments of
Agriculture and State, the Agency for International
Development, the Overseas Private Investment Corp, market
development cooperatives and private voluntary organizations.
    At least 16 missions would have to be sent within one year
after enactment of the bill. The missions would promote U.S.
programs, including PL480, Section 416 donations, Export
Enhancement Program, the dairy export incentive program, and
export credit guarantee programs (GSM-102, GSM-103).
    The panel agreed to drop a provision in the original bill,
offered by Sen. John Melcher (D-Mont.), that would have
required the U.S. Agriculture Department to donate at least one
mln tonnes of surplus commodities to developing countries.
    Current law requires USDA to donate at least 750,000 tonnes
of surplus grains and dairy products under the Section 416 food
donation program.
    The Congressional Budget Office estimated that the proposed
increase in the minimum tonnage requirement would have cost up
to 50 mln dlrs per year, Senate staff said.
    The committee also dropped a provision identifying which
countries would be the focus of the trade missions' activities.
    Under the bill adopted by the committee, countries "friendly
to the United States" would be eligible to host the trade
missions.
    Melcher originally had proposed sending missions to Mexico,
the Philippines, Indonesia, Bangladesh, Senegal, Nigeria, Peru,
Kenya, the Dominican Republic, Costa Rica, Malaysia, Venezuela,
Tunisia and Morocco.
    The bill also would require the Foreign Agricultural
Service, FAS, to have at least 850 full-time employees during
fiscal years 1987-89. As of February 28, FAS had 790 full-time
employees, a FAS spokesman said.


.I 14929
.C
earn
.W
BAT SHARES UNDERVALUED, SAY STOCK MARKET ANALYSTS.
    LONDON, March 25 - BAT Industries Plc <BTI.L> 1986 results,
which were at the upper end of market expectations, showed the
company was in a strong position and that its shares were
probably undervalued, share analysts said.
    BAT shares were down at 524p in late afternoon trading
after a previous 535p close. They touched a high of 538p
earlier on news of a 19 pct rise in annual profits to 1.39
billion pre-tax.
    Stock market analysts said today's generally weak stock
market plus unwinding of positions after heavy buying of BAT
shares in the run-up to the results caused the fall in the
share price.
    "In the current market, people almost expect companies to
beat expectations," said one analyst, adding that pretax profits
of 1.35 to 1.40 billion stg had been forecast.
    BAT's 1986 figure of 1.39 billion stg compared with a 1985
pretax profit of 1.17 billion.
    Brokers noted that BAT's shift away from its
underperforming industries and the decreasing share of the
tobacco portion of the group were seen as good signs.
    BAT Chairman Patrick Sheehy told a news conference that the
tobacco sector of the company had declined to 50 pct from 74
pct four years ago.
    Sheehy said he could see the tobacco portion of the company
declining further as other sectors increased in importance.
    He said BAT was looking to expand in the area of financial
services, in particular in the U.S.
    Sheehy also said the group had "no sizeable acquisitions" in
sight in the near future.
    Analysts said BAT's increasingly good performance in the
U.K. Insurance area was encouraging.
    Its declining debt-to-equity ratio of currently about 16
pct also made it likely that BAT would soon be looking to make
major acquisitions, they said.


.I 14931
.C
acq
.W
REICHHOLD <RCI> EXPLORING SALE OF EUROPEAN UNIT.
    WHITE PLAINS, N.Y., March 25 - Reichhold Chemicals Inc said
it is exploring the sale of its stake in its European
subsidiary Reichhold Chemie AG.
    Reichhold Chemie Ag, headquartered in Rausen, Switzerland,
had sales in excess of 75 mln dlrs last year. It is 83 pct
owned by Reichhold. The rest is owned by German and Swiss
shareholders.
    Reichhold said it is seeking the sale to focus on its
adhesives business.


.I 14933
.C
acq
.W
******UAL SAID DONALD TRUMP WAS INTERESTED IN UAL STOCK "AS INVESTMENT".
Blah blah blah.

.I 14934
.C
earn
.W
INT'L BROADCASTING <IBCA> SETS REVERSE SPLIT.
    MINNEAPOLIS, MINN., March 25 - International Broadcasting
Corp said shareholders at its annual meeting approved a one for
25 reverse stock split.
    The split will be effective after completion of filing
requirements, it said. New certificates will be needed, it
added.
    The media company said it currently has 40,950,000 common
shares issued and outstanding and, upon completion of the
reverse split, will have 1,638,000 shares outstanding.


.I 14935
.C
earn
.W
BI INC <BIAC> SETS REVERSE SPLIT.
    BOULDER, Colo., March 25 - BI Inc said it is implementing a
one-for-15 reverse split to shareholders of record today.
    It said any fractional shares will be redeemed for cash,
reducing its free-trading stock in public hands to 1,300,000
shares from 20 mln and its total shares outstanding to
1,993,000 from 29.9 mln.
    Shareholders approved the reverse split in October.


.I 14936
.C
trade
.W
BALDRIGE SAYS JAPAN MUST OPEN ITS MARKETS.
    WASHINGTON, March 25 - Commerce Secretary Malcolm Baldrige
said the United States will not stand idly by and let Japan
dominate the world electronics market.
    Baldrige told the Senate Finance Committee the United
States would insist Japan open its markets to U.S. products as
the U.S. market is open to Japanese products.
    Asked after his testimony if this meant the United States
would close its markets to Japan if they did not open theirs,
Baldrige said, "I'm not prepared to say that, but it certainly
would be one of the alternatives studied."
    Baldrige said in his testimony Japan had a closed
supercomputer market and a restricted telecommunications
market.
    "I can only conclude that the common objective of the
Japanese government and industry is to dominate the world
electronics market. Given the importance of this market to U.S.
industry in general and our defense base in particular, we
cannot stand by idly," he said.
    He said it was these concerns about national security which
led him to express reservations over the proposed acquisition
of Fairchild Semiconductor by Fujitsu of Japan.


.I 14938
.C
earn
.W
BASF CORP YEAR NET.
    PARSIPPANY, N.J., March 25 -
    Net 105 mln dlrs vs 39 mln
    Sales 3.6 billion vs 2.6 billion
    NOTE: Wholly-owned by <BASF AG> of West Germany.


.I 14943
.C
earn
.W
MONTANA POWER CO <MTP> VOTES QUARTERLY DIVIDEND.
    BUTTE, MONT., March 25 -
    Qtly div 67 cts vs 67 cts prior qtr
    Pay 30 April
    Record 10 April


.I 14944
.C
acq
.W
UAL <UAL> SAID TRUMP TALKED WITH UAL CHAIRMAN.
    New York, March 25 - Real estate magnate Donald Trump told
UAL Inc Chairman Richard Ferris that he was interested in UAL
stock as an investment, according to a UAL executive.
    Trump, who was unavailable for comment, is believed by
market sources to have a sizeable position in UAL, which he
began accumulating several weeks ago. UAL stock today was up
three at 63 in active trading.
    "They (ferris and Trump) talked last week. Apparently,
Trump said he was interested in it as an investment. He didn't
say how much stock he had. He didn't say what he would or
wouldn't do about it," said UAL senior vice president Kurt
Stocker.
    Trump is believed to have close to five pct of UAL's stock,
market sources said.


.I 14946
.C
earn
.W
TEAM INC <TMI> 3RD QTR FEB 28 NET.
    HOUSTON, March 25 -
    Shr profit five cts vs loss 18 cts
    Net profit 91,000 vs loss 355,000
    Revs 11.5 mln vs 11.7 mln
    Nine mths
    Shr profit six cts vs loss 1.45 dlrs
    Net profit 127,000 vs loss 2,846,000
    Revs 31.8 mln vs 34.9 mln


.I 14947
.C
earn
.W
******TODD SHIPYARDS CORP OMITS QTLY COMMON DIV, SETS PREFERRED PAYOUT.
Blah blah blah.

.I 14948
.C
earn
.W
RSI CORP <RSIC> 2ND QTR FEB 28 NET.
    GREENVILLE, S.C., March 25 -
    Shr 33 cts vs 13 cts
    Net 2,266,000 vs 849,000
    Revs 24.1 mln vs 16.0 mln
    1st half
    Shr 61 cts vs 24 cts
    Net 4,236,000 vs 1,619,000
    Revs 47.4 mln vs 33.5 mln
    NOTE: Share after stock splits.
    Net includes discontinued operations loss four cts shr vs
nil in quarter and loss seven cts vs gain one ct in half.


.I 14949
.C
earn
.W
RCM TECHNOLOGIES INC <RCMT> 1ST QTR JAN 31 LOSS.
    CAMDEN, N.J., March 25 -
    Shr loss one ct vs loss one ct
    Net loss 89,844 vs loss 85,731
    Revs 3,384,726 vs 4,646,285


.I 14950
.C
earn
.W
MCCLAIN INDUSTRIES INC <MCCL> 1ST QTR DEC 31 NET.
    STERLING HEIGHS, Mich., March 25 -
    Shr 24 cts vs 13 cts
    Net 380,325 vs 211,183
    Sales 5,046,578 vs 3,941,764
    NOTE: Current year net includes gain from sale of Sterling
Heights, Mich., plant of 174,000 dlrs.  Another 698,000 dlrs of
gain from sale sale has been treated as deferred income.


.I 14952
.C
acq
.W
SYNALLOY <SYO> ENDS PLANS TO SELL UNIT.
    SPARTANBURG, S.C., March 25 - Synalloy Corp said it has
ended talks on the sale of its Blackman Uhler Chemical Division
to Intex Products Inc because agreement could not be reached.
    The company said it does not intend to seek another buyer.


.I 14953
.C
acq
.W
C-I-L ACQUIRING TRIMAC'S STAKE IN TRICIL.
    TORONTO, March 25 - <C-I-L Inc> said it would exercise its
right to acquire <Trimac Ltd>'s stake in their jointly owned
Tricil Ltd for 91 mln dlrs, with closing expected May 22.
    C-I-L added that the final price could be less, however,
depending on an Ontario court ruling resulting from a
previously reported legal action launched by C-I-L.
    Mississauga, Ontario-based Tricil is a waste management
company with operations in the U.S. and Canada.


.I 14954
.C
cpi
.W
EC INFLATION STARTS TO RISE AGAIN IN FEBRUARY.
    LUXEMBOURG, March 25 - Inflation in the European Community,
which fell to its lowest since the 1960s between November and
January, started to take off again last month, figures from the
EC statistics office Eurostat showed.
    Consumer prices were on average three pct higher than in
February 1986, the office said. This compared with a year on
year rise of 2.7 pct in January, the lowest for 25 years, and
was the highest figure since October.
    Prices rose in February by 0.3 pct from January, after
rises of 0.4 pct in January and of 0.2 pct in each of the last
three months of 1986.


.I 14955
.C
acq
.W
PANTERA'S <PANT> TO BUY TEN PIZZA RESTAURANTS.
    ST. LOUIS, MO., March 25 - Pantera's Corp said it agreed to
buy ten pizza restaurants in southeastern Colorado from
creditors foreclosing on the facilities.
    The purchase price includes 1.25 mln dlrs in cash and
company stock, it said.
    Separately, Pantera's said it issued an area development
agreement with a franchisee group for northeastern Colorado,
including the Denver area, for the opening of about 20
franchised Pantera's pizza restaurants.


.I 14956
.C
acq
.W
******ALLIED-SIGNAL INC TO SELL LINOTYPE GROUP TO COMMERZBANK OF WEST GERMANY.
Blah blah blah.

.I 14957
.C
crude;nat-gas;
.W
ENERGY/U.S. OIL OUTPUT.
    By ROBERT TRAUTMAN, Reuters
    WASHINGTON, March 25 - Energy Secretary John Herrington has
proposed several ways to boost U.S. oil production, but he said
all would cost the Treasury money and will come under close
White House scrutiny before action is taken.
    One measure he said he favored would raise the depletion
allowance to 27.5 pct on new oil and gas production as well as
production using enhanced extraction methods.
    Herrington said such a plan would cost 200 mln dlrs a year.
The White House, reacting, said it did not favor amending the
tax code, but would look at the proposal.
    Herrington's proposals to spur production were made along
with the release last week of the energy department's report on
energy and the national security.
    The report said U.S. oil imports, rapidly rising, could hit
50 pct by the mid 1990s and have potentially damaging
implications for national security.
    He has said since in speeches and at news conferences that
any plan he would back to spur lagging domestic oil production
would have to meet three criteria--increase production, not
cause economic dislocation, and be low cost to the taxpayer.
    Herrington said an import fee would meet the first test,
spurring production but fail the second and third.
    He said it would raise production and return 120,000 oil 
workers to their jobs, but at the same time it lifted oil
prices, the higher prices would cost 400,000 jobs nationwide
and cut the gross national product by 32 billion dlrs.
    A tax on gasoline, he said, would fail the first criteria
by not increasing domestic production.
    In any case, U.S. officials say, President Reagan remains
firmly opposed to an import fee and a gasoline tax.
    Options which meet Herrington's criteria include:
    - Loan-price guarantees to shield banks from defaults by
borrowers because of lower oil prices. It was estimated that if
oil fell to five dlrs a barrel it could trigger defaults that
could cost the government an estimated 15 billion dlrs.
    - A five pct tax credit for exploration and development. It
would raise oil and gas production the equivalent of 325,000
barrels a day, at a cost of 740 mln dlrs a year.
    - A five pct credit only for geological and geophysical
expenditures. It would increase production by 80,000 barrels a
day, at a cost of 65 mln dlrs.
    - Lower bid minimums on outer continental shelf acreage to
spur exploration. A drop from the present 150 dlrs per acre for
the typical 5,760 acre tract to 25 dlrs per acre would lower
the cost of the standard tract lease to 144,000 dlrs.
    Herrington also pressed anew for existing Administration
proposals to deregulate natural gas, which he said would cut
the need for imported oil by 300,000 barrels daily.
    He also called again for Congressional approval to explore
off the continental shelf, which may hold more than 12 billion
barrels of oil, and the Arctic National Wildlife Refuge, which
may hold nine billion barrels.
    Herrington said he understood the Reagan's reluctance to 
amend the newly enacted tax code to fund some of these
proposals, but added he hoped his department's energy/security
study would make a strong case for the need to help the
struggling domestic oil industry.
    Another move Herrington said he will press anew, even
though it had been rejected earlier by the White House, is to
raise the fill-rate for the Strategic Petroleum Reserve to
100,000 barrels a day from its planned 1988 rate of 35,000.
    This, he said, would further bolster national security in
case of an oil-supply disruption.
   


.I 14958
.C
earn
.W
IMO DELAVAL <IMD> SETS INITIAL DIVIDEND.
    LAWRENCEVILLE, N.J., March 25 - Imo Delaval said its board
declared an initial quarterly dividend of 14 cts per share,
payable April 24 to holders of record on April 6.


.I 14960
.C
earn
.W
NATIONAL COMPUTER SYSTEMS INC <NLCS>4TH QTR NET.
    MINNEAPOLIS, MINN., March 25 - 
    Shr 25 cts vs 31 cts
    Net 4,798,000 vs 5,380,000
    Revs 65.3 mln vs 58.2 mln 
    Avg shrs 19.2 mln vs 17.5 mln
    Year
    Shr 84 cts vs 89 cts
    Net 15,750,000 vs 15,191,000
    Revs 262.1 mln vs 215.8 mln
    Avg shrs 18.8 mln vs 17.1 mln



.I 14962
.C
acq
.W
ALLIED-SIGNAL <ALD> TO SELL LINOTYPE UNIT.
    MORRIS TOWNSHIP, N.J., March 25 - Allied-Signal Inc said it
agreed to sell its Linotype Group unit to <Commerzbank AG>
of West Germany for an undisclosed amount.
    Allied-Signal said Commerzbank is expected to offer shares
of the unit to the public later this year.
    The company said the agreement is subject to approval by
the government and its shareholders.
    The Linotype unit, based in Eschborn, West Germany, had
revenues in 1986 of more than 200 mln dlrs, the company said.
    The company said top management of Linotype plan to remain
with the unit, which has operations in the United States, West
Germany and the United Kingdom.
    Allied-Signal announced in December that it planned to sell
the Linotype unit as well as six other businesses in its
electronics and instrumentation segment.
    Linotype is a supplier of type and graphics composition
systems.


.I 14963
.C
earn
.W
CONTINENTAL HEALTH AFFILIATES INC <CTHL> 4TH QTR.
    ENGLEWOOD CLIFFS, N.J., March 25 -
    Shr 10 cts vs five cts
    Net 512,000 vs 230,000
    Revs 16.8 mln vs 9,025,000
    Year
    Shr 55 cts vs 34 cts
    Net 2,662,000 vs 1,541,000
    Revs 57.5 mln vs 32.3 mln


.I 14964
.C
crude
.W
CANADA SETS OIL INDUSTRY AID PACKAGE.
    EDMONTON, Alberta, March 25 - Canada's federal government
will provide a 350 mln dlr oil industry aid package that
includes cash incentives designed to cover one-third of a
company's oil and gas exploration and development costs, Energy
Minister Marcel Masse announced.
    The aid program will inject about 350 mln dlrs a year into
the oil and gas industry and could lead to more than one
billion dlrs in new investment, Masse told a news conference.
    The program will affect drilling done anywhere in Canada on
or after April 1, 1987.
    Masse told reporters that the government's oil industry aid
package is aimed at small and medium sized companies.
    The aid package, called the Canadian Exploration and
Development Incentive Program, will restrict the total payments
that any individual company can claim to 10 mln dlrs a year.
    Masse said the program will probably generate new
employment equivalent to 20,000 people working for a year.
    He said oil industry aid is needed because exploration and
development spending dropped by at least 50 pct since world oil
prices fell during the first half of 1986.
    Energy Minister Masse said the federal government decided
to provide cash incentives so a large number of non-tax paying
companies, mainly small Canadian firms, will receive the full
value of the incentive. Such companies would not immediately
benefit from tax benefits, he said.
    The federal government also wanted to deliver an aid
program outside the tax system. Finance Minister Michael Wilson
is now reviewing Canada's tax system and plans to announce tax
reform proposals later this spring.
    An important feature of the aid program is a decision to
let companies issue flow-through shares, allowing investors to
benefit from the subsidy rather than restricting benefits to
only participating companies, he said.
    Allowing flow-through shares under the program will make it
easier for companies to attract investors in exploration and
development, Masse said.
    He told reporters his department is still considering
whether to allow partnerships and other entities to qualify for
the subsidy.


.I 14969
.C
cocoa
.W
COCOA TALKS SLOW AT CRUCIAL STAGE - DELEGATES.
    LONDON, March 25 - International Cocoa Organization (ICCO)
talks on buffer stock rules have slowed during a crucial phase
of negotiations, delegates said, but they remained confident
about prospects for reaching agreement by Friday.
    Cocoa producers, European Community (EC) consumers and all
consumers separately reviewed technical details of a buffer
stock rules package distributed yesterday.
    The buffer stock working group of consumers and producers
was set to meet later today to debate the proposal jointly for
the first time, they said.
    Delegates said major sticking points were likely to be the
amount of non-member cocoa allowed to be bought for the buffer
stock, and the fixed price differentials at which different
origin cocoas will be offered to the buffer stock manager.
    Producers would prefer that non-member cocoa not be
included in the buffer stock because, if it is, countries such
as Malaysia benefit from the cocoa agreement without joining
it, the delegates said.


.I 14972
.C
gold
.W
NEWMONT GOLD <NGC> SEES GOLD SALES RISING.
    NEW YORK, March 25 - Newmont Gold Corp expects gold sales
in 1987 to rise about 22 pct to 577,000 ounces from 1986's
474,000 ounces, the company said in its annual report.
    Newmont Gold, 95 pct owned by Newmont Mining Corp <NEM>,
said it expects significant increases in gold sales in 1988 and
1989 as well.


.I 14973
.C
acq
.W
MESSIDOR TO MERGE WITH TRITON BELEGGINGEN.
    NEW YORK, March 25 - Messidor Ltd said it signed a letter
of intent to acquire 100 pct of the outstanding shares of
Triton Beleggineng Nederland B.V., a European investment
portfolio management company.
    If approved, two mln shares of stock held by the Messidor
Ltd officers and directors would be issued to Triton
shareholders.
    Triton will become a subsidiary of Messidor, it said.
    If approved, the president of Triton, Hendrik Bokma, will
be nominated as chairman of the combined company.
    There are about 1.5 mln Messidor units issued to the public
consisting of one share of common stock, four Class A common
stock warrants, four class B common stock warrants and four
class C common stock warrants.
    In addition there are four mln restricted shares
outstanding.
    Messidor said the acquisition is expected to be completed
by June three.


.I 14982
.C
earn
.W
******ENCOR ENERGY CORP INC YR NET LOSS 406.6 MLN VS PROFIT 35.4 MLN.
Blah blah blah.

.I 14984
.C
earn
.W
MIDDLE SOUTH <MSU> TO FORM NEW DIVIDEND POLICY.
    NEW YORK, March 25 - Middle South Utilities Inc is taking a
conversative approach to formulating a new common stock
dividend policy, chairman Edwin Lupberger said.
    He told securities analysts that when the company's common
dividend is resumed, "the initial rate will appear conservative
to you by industry standards and in relation MSU's net income
and cash flow."
    "Our progress will determine how soon we can reinstate a
dividend to our common stockholders, he said."
    The company last paid a common dividend of 44.5 cts a share
in July 1985.
    Lupberger told the analysts that the company's primary
objective is "to create financial strength, enough strength so
that what happened to us and our stockholders over the past
couple of years never happens again."
    The company has faced regulatory challenges to rates
proposed to cover the cost of its Grand Gulf nuclear plant.
    He said Middle South's net income is expected to post
"modest growth" over the next three years.
    In 1986, the company earned 451.3 mln dlrs or 2.21 dlrs a
share on revenues of 3.49 billion dlrs.
    Lupberger said, "A good portion of the improvement
projected for the next three years comes from keeping the lid
on operating and maintenance expenses."
   


.I 14988
.C
acq
.W
******TWA SOLD FOUR MLN SHARES OF USAIR BELIEVED TO INSTITUTIONS, WALL STREET SOURCES.
Blah blah blah.

.I 14989
.C
grain;sugar;corn;
.W
U.S. SUGAR POLICY MAY SELF-DESTRUCT, CONGRESSMAN.
    By Greg McCune, Reuters
    WASHINGTON, March 25 - A leading U.S. farm-state
Congressman, Jerry Huckaby, D-La., warned he will press next
year for legislation to control domestic production of
sweeteners, perhaps including corn sweeteners, if the industry
fails to voluntarily halt output increases this year.
    "We're moving toward a direction where we could
self-destruct (the U.S. sugar program)," Rep. Huckaby, chairman
of the House agriculture subcommittee dealing with sugar
issues, told Reuters in an interview.
    Huckaby, who told U.S. sugarbeet growers earlier this year
they must halt production increases, said he will deliver the
same message to Louisiana sugarcane growers Friday. He also
said he will soon talk with corn refiners on the subject.
    Huckaby said the campaign to urge a halt to domestic
sweetener output increases is an effort to forestall further
cuts in the sugar import quota, now at one mln short tons.
    "I think if we're talking about dropping (the quota)
another half mln tons, lets say, you're getting to the point
where the program might not work," he said.
    "Ideally, I'd like to freeze things right where we are,"
said Huckaby, leading advocate for sugar growers in Congress.
    A freeze would mean domestic sugar production at about the
current level of 6.5 mln tons, the corn sweetener share of the
U.S. market staying at just over 50 pct, and U.S sugar imports
holding at about 1.2 mln tons, Huckaby said.
    A decision on whether to seek legislation will not be made
until 1987 output numbers are known late this year, he said.
    "I feel like if we didn't expand production, we could
probably hold where we are indefinitely, or at least through
the 1985 farm bill without any changes (in the sugar program),"
Huckaby said.
    However, much depends on whether high-fructose corn syrup
producers continue to expand their share of the U.S. sweetener
market from just over 50 pct, Huckaby said.
    He noted most estimates are that corn sweeteners will
capture at most only another 10 pct of the sweetener market in
the U.S.
    But he said if there were an economic breakthrough in the
production of a new crystalline corn sweetener which further
expanded the corn sweetener share, then U.S. sugar imports
might be eliminated and U.S. sugar output severely reduced.
    Huckaby said he will deliver this message to corn refiner
companies such as A.E. Staley and Archer Daniels Midland soon.
    "This program is advantageous to the corn users. They have
some natural, legitimate self-interest in seeing that the
program is preserved," Huckaby said.
    Huckaby said he has asked sugar industry representatives to
think about how domestic output could be controlled, either
through production allocations, acreage or marketing controls.
    Huckaby also said he would be seeking guidance from the
Justice Department to determine if it would be legal to ask
corn refiners to limit production.
    "I don't know if we will go this route, but if we do
there's a question in my mind at this point in time; can you do
that legally?" he said.
    Asked if he would proceed with production controls without
the support of corn refiners, Huckaby said "You build a fragile
house if you do it that way."
    Huckaby said he understands why U.S. cane and beet farmers
have expanded production, because high sugar price support
means returns from sugar are higher than competing crops such
as soybeans and grain.
    But he said for sugar growers as a whole, expansion would
not be good policy.
    Huckaby said he has tried to stress, in his speeches to
sugar industry groups, that if growers continue to expand, they
may be penalized retroactively under any production control
legislation passed next year.
    Huckaby said Congress is unlikely to approve any changes in
the sugar program this year despite a Reagan administration
proposal to drastically slash the program.
    "The administration proposal is so drastic, that I don't
think it will get up a head of steam," Huckaby said.
    He said even a more moderate proposal to reduce sugar price
support is unlikely to be approved.
    Instead of seeking to slash the domestic sugar program,
Huckaby said the Reagan administration should file a complaint
with the General Agreement on Tariffs and Trade against the
European Community's sugar policy. He said EC policies are the
major cause of the depressed world sugar market.


.I 14991
.C
acq
.W
INVESTORS INCREASE STAKE IN FROST, SULLIVAN.
    WASHINGTON, March 25 - One of a pair of private investors
in Frost and Sullivan Inc told the Securities and Exchange
Commission he increased his stake in the firm by about two pct,
to 15.4 pct.
    He is Theodore Cross, Princeton, N.J., editor of Business
and Society Review.
    The other investor is Mason Slaine, Cos Cob, Mass,
president of Dealers' Digest Inc.  He holds a 3.3 pct stake.
    Cross told the SEC he bought the new shares at between 7.75
and 8.0 dlrs.


.I 14992
.C
ship
.W
LIBERIAN ORE CARRIER IN COLLISION IN RIVER ELBE.
    LONDON, March 25 - The Liberian motor bulk carrier, Trave
Ore, 106,490 dwt, loaded with ore, and the 2,852 dwt West
German motor vessel Christa, collided late last night on the
River Elbe near buoy 129, Lloyds Shipping Intelligence said.
    The Trave Ore proceeded by its own means to Hamburg. The
Christa was taken in tow with a damaged bow.
    The Liberian vessel was concluding a trip from Seven
Islands to Hamburg.


.I 14994
.C
earn
.W
HERSHEY OIL CORP <HSO> 4TH QTR LOSS.
    PASADENA, Calif., March 25 -
    Shr loss 19 cts vs loss 2.37 dlrs
    Net loss 1,140,000 vs loss 13,608,000
    Revs 1,069,000 vs 1,940,000
    Year
    Shr loss 53 cts vs loss 2.34 dlrs
    Net loss 3,012,000 vs loss 13,433,000
    Revs 4,945,000 vs 6,705,000


.I 14996
.C
earn
.W
EG AND G INC <EGG> SETS QUARTERLY.
    WELLESLEY, Mass., March 25 -
    Qtly div 14 cts vs 14 cts prior
    Pay May Eight
    Record April 17


.I 14997
.C
earn
.W
<ENCOR ENERGY CORP INC> YEAR LOSS.
    CALGARY, Alberta, March 25 - 
    Shr not given
    Net loss 406.6 mln vs profit 35.4 mln
    Revs 138.1 mln vs 211.9 mln
    Note: 1986 net includes 545.7 mln dlr asset writedown
before 139.2 mln dlr recovery of deferred taxes.
    48 pct-owned by Dome Petroleum Ltd <DMP>.


.I 14998
.C
ship
.W
BRAZILIAN LABOUR UNREST SPREADS, MANY BANKS SHUT.
    By Stephen Powell, Reuters
    SAO PAULO, March 25 - Brazil's labour unrest is spreading,
with many banks, universities and government statistical
offices on strike and more pay disputes looming.
    Bankworkers' leaders said that a national strike launched
yesterday to press for a 100 pct immediate pay rise and monthly
salary adjustments had the support of most of the 700,000
workforce.
    The strike today closed the stock exchanges of Sao Paulo
and Rio de Janeiro.
    For the government the one positive development on the
labour front was the gradual return to work of the nation's
40,000 seamen, who began a national strike on February 27.
    A union spokesman in Rio de Janeiro told Reuters about half
the seamen had returned to work after accords with 22 companies
and that the strike looked close to an end.
    Otherwise the labour scene looked bleak, with the bank
strike posing the most serious problems for Brazil's
crisis-laden economy.
    "If this goes on for more than a few days it will have a
serious effect because normal financial operations will grind
to a halt," said a western diplomat in Sao Paulo.
    Today Brazil's 50,000 university teachers in the 42 federal
universities launched a national strike, with a broad political
demand as well as a pay claim.
    David Fleischer, head of the political science department
in Brasilia university, told Reuters the National Association
of Higher Education Teachers wanted a full congressional
inquiry into what had happened to government education funds.
    He said the universities were strapped for cash and that
the association suspected the junior partner in the coalition
government, the Liberal Front Party, PFL, of using education
funds for projects which had helped their candidates in
elections. The PFL holds the Education Ministry.
    Hardly any sectors of the economy are proving immune to the
current labour unrest, caused by the return of high inflation,
officially pegged at 33 pct for January-February.
    Other possible strikes looming include stoppages by oil
industry workers and social security workers.


.I 15000
.C
earn
.W
TODD SHIPYARDS <TOD> OMITS COMMMON DIVIDEND.
    JERSEY CITY, N.J., March 25 - Todd Shipyards Corp said it
omitted payment of the quarterly dividend on its common stock
and lowered the dividend on its series A preferred stock to 75
cts from 77 cts a share.
    Todd said the 75 ct preferred dividend will be paid May one
to shareholders of record April 15.
    The company said it omitted the common dividend to cover
both losses from a commercial ship conversion contract and
increased reserves for previously announced discontinued
shipyard operations.
    In addition, the company said its lenders agreed to
temporarily reduce the net worth requirement of its revolving
credit and term-loan pact to 140 mln dlrs from 130 mln.
    The reduction will hold through May 15, it said.
    Todd said the reduction in the net worth requirement
allowed for the payment of the preferred dividend and prevented
it from violating covenants of its credit agreement.
    The company said it is also negotiating with its lenders to
extend the reduced net worth terms beyond May 15.
    Todd added that it has suffered financially because of the
U.S. Navy's unwillingness to release certain retentions under
completed ship construction contracts and a general decrease in
U.S. military spending.


.I 15004
.C
earn
.W
<ASTA GROUP INC> UNIT IN LOAN PURCHASE.
    YONKERS, N.Y., March 25 - Asta Group Inc said its 50 pct
owned Liberty Service Corp affiliate has purchased about 50 mln
dlrs face value of credit card installment receivables from a
major financial institution it did not name for a significant
discount from face value.
    It said the portfolio consists mostly of charged off loans.
    The company also said it expects to realize a profit of
about 300,000 dlrs on its 25 pct interest in the Briarcliff
Manor condominium project in New York, with about 140,000 dlrs
of the profit being reflected in the year ending September 30.


.I 15006
.C
earn
.W
ARDEN INTERNATIONAL <AIKI> 4TH QTR DEC 27 NET.
    LARKVILLE, MINN., March 25 -
    Oper shr one ct vs two cts
    Oper net 30,000 vs 62,000
    Revs 2,315,000 vs 2,355,000
    Year
    Oper shr four cts vs nine cts
    Oper net 95,000 vs 204,000
    Revs 9,214,000 vs 9,950,000
    Avg shrs 2,492,000 vs 2,351,000
    NOTE: Full name is Arden International Kitchens Inc
 More

.I 15008
.C
acq
.W
TWA <TWA> SELLS POSITION IN USAIR <U>.
    New York, March 25 - Trans World Airlines Inc sold four mln
shares it held in USAir Group Inc, Wall Street sources said.
The sources said the buyers are believed to be a group of
institutions.
    Bear Stearns handled the trade. It crossed the four mln
shares at 45, off 1/8. Bear Stearns would not comment on buyers
or sellers.
    USAir and TWA had no immediate comment.
    USAir later said it did not buy the stock. A company
spokesman would not comment further.
    TWA earlier this month reported holding slightly more than
four mln shares, or about 15 pct of USAir. It had also proposed
a takeover of USAir, which at the time was negotiating its
proposed merger with Piedmont Aviation Inc.
    On March 16, TWA withdrew its bid, saying it did not intend
to seek control of USAir Group or to acquire more of its stock
at the time.
    TWA also said in the filing with the Securities and
Exchange Commission that its chairman, Carl Icahn is the target
of an SEC probe of alleged violations of securities laws.
    In its filings with the SEC, TWA said it paid 178.2 mln
dlrs for its USAir stock.
    "With this out of the way, if it indeed was bought by
institutions, it paves the way for better value for USAir stock
later," said Janney Montgomery analyst Louis Marckesano of
TWA's sale of its stock.
    "Technically, as long as that block was overhanging the
market you didn't know what was going to happen," he said.
    USAir stock was trading at 44-3/8, off 3/4 on volume of 4.4
mln shares. TWA stock rose one to 28-1/4.


.I 15009
.C
earn
.W
COMBUSTION ENGINEERING<CSP> SEES 1ST QTR NET OFF.
    STAMFORD, Conn., March 25 - Combustion Engineering Inc said
it expects first quarter earnings to be 20 to 25 pct below the
year-ago 13.6 mln dlrs, mainly due to financing costs resulting
from the January 1987 acquisition of AccuRay Corp.
    The company said it has filed for an offering of four mln
common shares and 150 mln dlrs of subordinated debentures due
2017, with proceeds to be used to refinance the short-term bank
debt incurred for the AccuRay acquisition, to finance other
costs of the transaction and for general corporate purposes.
    Combustion said 3,500,000 shares will be sold in the U.S.
and the remainder overseas.
    Combustion paid about 218 mln dlrs for AccuRay, a maker of
computer-based measurement and control systems used in pulp and
paper mills.
    The company said it expects to release first quarter
results in the third week in April.
    Combustion said it expects further restructuring of core
businesses -- particularly Lummus Crest -- this year through
staff reductions downsizings and the consolidation of
facilities.
    Combustion said the restructuring at Lummus Crest is
expected to substantially reduce but not eliminate this year
losses in the Engineering and Construction segment.
    But it said improvement at Lummus Crest is expected to be
approximately offset by a number of factors, including a
somewhat lower level of earnings in the Power Generation
segment than in 1986, financing costs of the AccuRay
acquisition, costs associated with integrating AccuRay
technology and operations and delays in waste to energy
projects.


.I 15010
.C
gold
.W
NEWMONT GOLD SEES ITS SALES RISING 22 PCT.
    NEW YORK, March 25 - Newmont Gold Corp expects gold sales
in 1987 to rise about 22 pct to 577,000 ounces from 1986's
474,000 ounces, the company said in its annual report.
    Newmont Gold, 95 pct owned by Newmont Mining Corp, said it
expects significant increases in gold sales in 1988 and 1989 as
well.


.I 15012
.C
earn
.W
ARDEN INTERNATIONAL <AIKI> =2 LARKVILLE.
    NOTE: 1985 period ended December 28
    Earnings exclude losses from discontinued operations of
30,000 dlrs, or one ct a share vs 71,000 dlrs, or three cts a
share for the year
    Earnings exclude gains from tax loss carryforwards of
13,000 dlrs, or one ct a share vs 45,000 dlrs, or two cts a
share in the quarter and 28,000 dlrs, or one ct a share vs
105,000 dlrs, or four cts a share for the year


.I 15014
.C
trade
.W
******TREASURY'S BAKER SAYS EXCHANGE RATE CHANGES WILL REDUCE TRADE DEFICIT THIS YEAR.
Blah blah blah.

.I 15018
.C
acq
.W
GATEWAY SPORTING BUYS INNOVATIVE DENTAL.
    NEW YORK, March 25 - Gateway Sporting Goods Co said it
acquired all of the shares of stock of Innovative Dental
Services Inc for an undisclosed amount of cash.
    Gateway said the acquired company has contracts with 102
dentists in 144 locations.


.I 15019
.C
money-fx;trade;
.W
TREASURY'S BAKER SEES CUT IN TRADE DEFICIT.
    WASHINGTON, March 25 - Treasury Secretary James Baker said
the administration is confident the effect of exchange rate
changes will bring about a cut in the trade deficit this year.
    In testimony before the Senate Committee on Governmental
Affairs, Baker conceded that the effect thus far has "not yet
proved as quick or as strong as had been expected from past
experience."
    He told the committee, however, that the "initial signs are
encouraging."


.I 15020
.C
acq
.W
******CYCLOPS CORP REFORMS BOARD AFTER DIXONS GROUP FAILS TO GET MAJORITY OF CYCLOPS STOCK.
Blah blah blah.

.I 15023
.C
earn
.W
PAN ATLANTIC RE INC <PNRE> 4TH QTR NET.
    WHITE PLAINS, N.Y., March 25 -
    Oper shr 15 cts vs 1.07 dlrs
    Oper net 372,000 vs 2,601,000
    Year
    Oper shr 80 cts vs 61 cts
    Oper net 1,952,000 vs 1,491,000
    NOTE: Net excludes realized investment loss 13,000 dlrs vs
gain 986,000 dlrs in quarter and gains 1,047,000 dlrs vs
1,152,000 dlrs in year.
    1986 year net excludes tax credit 919,000 dlrs.


.I 15024
.C
earn
.W
QUAKER CHEMICAL CORP <QCHM> SETS QUARTERLY.
    CONSHOHOCKEN, Pa., March 25 -
    Qtly div 12-1/2 cts vs 12-1/2 cts prior
    Pay April 30
    Record April 17


.I 15026
.C
earn
.W
MIDDLE SOUTH <MSU> TO CONSIDER DIVIDEND.
    NEW YORK, March 25 - Middle South Utilities Inc will not
consider payment of a common stock dividend until there is
another ruling on a Mississippi Supreme Court order rolling
back rates at the company's Mississippi Power and Light Co
subsidiary, chairman Edwin Lupberger said.
    He told security analysts Middle South was close to
recommending resumption of the common stock dividend when the
Mississippi court ordered the rate rollback. Following the
order, he noted, the unit cancelled a planned sale of preferred
stock. Middle South has petitioned the court for a rehearing or
a stay of the order while it is being appealed.



.I 15030
.C
acq
.W
BELGIUM PLANS TO OUTLAW INSIDER TRADING.
    BRUSSELS, March 25 - A Belgian finance ministry spokesman
said new rules planned on insider trading would enable
offenders to be fined and imprisoned for up to a year, and be
compelled to forfeit gains.
    The new rules require parliamentary approval, and
government sources said it was unclear when they would come
into force. Insider trading is currently not an offence in this
country.
    The cabinet approved a separate bill that analysts said
includes provisions to make more difficult the build-up of
major new stakes in Belgian companies.
    The bill would make obligatory the declaration of major
stakes in companies quoted on the bourse with own resources of
more than 200 mln francs.
    The Minister for Economic Affairs would need to be informed
in advance of deals under which foreign interests planned to
buy a new stake of more than ten pct of the voting shares in a
large Belgian company, or to increase an existing stake to more
than 20 pct.


.I 15031
.C
acq
.W
OWENS-CORNING FIBERGLAS <OCF> SELLS FOAM UNIT.
    TOLEDO, Ohio, March 25 - Owens-Corning Fiberglas Corp said
it sold its controlling interest in its French foam insulation
producing subsidiary to a Lafarege Corp <LAF> subsidiary.
    Owens-Corning said it sold its interest in Sentuc Porxpan
SA for an undisclosed price.


.I 15032
.C
earn
.W
******U.S. SHOE INC 4TH QTR SHR 31 CTS VS 56 CTS.
Blah blah blah.

.I 15036
.C
trade
.W
TREASURY'S BAKER OUTLINES TRADE BILL CRITICISMS.
    WASHINGTON, March 25 - Treasury Secretary James Baker said
that some of the trade bills proposed by Congress conflict
significantly with certain basic principles the Reagan
administration considers critical.
    Baker told a Senate committee that the administration would
resist such measures as a general import surcharge,
sector-specific protection such as import quotas for individual
products, mandatory retaliation, and limits on presidential
discretion in negotiating more open markets abroad and other
trade steps.


.I 15039
.C
earn
.W
U.S. SHOE CORP <USR> 4TH QTR JAN 31 NET.
    CINCINNATI, March 25 -
    Shr 31 cts vs 56 cts
    Net 13.7 mln vs 25.2 mln
    Sales 610.9 mln vs 575.9 mln
    Avg shrs 45.0 mln vs 44.8 mln
    Year
    Shr 57 cts vs 1.46 dlrs
    Net 25.5 mln vs 64.9 mln
    Sales 2.00 billion vs 1.92 billion
    Avg shrs 45.0 mln vs 44.5 mln
    NOTE: Current year net both periods includes gain five cts
shr from sale of Just for Kids! and Giggletree mail order
catalogs and charges of 10 cts shr from writedowns of assets
related to the closing of linens and domestics stores and
leased departments and of leased shoe departments.
    Year net includes LIFO inventory charges six cts shr vs two
cts shr.


.I 15041
.C
oilseed;grain;corn;soybean;sunseed;sorghum;
.W
ARGENTINE SOYBEAN YIELD ESTIMATES DOWN FURTHER.
    By Manuel Villanueva, Reuters
    BUENOS AIRES, March 25 - Argentine grain producers again
reduced their estimates for the total yield of the 1986/87
soybean crop, which will begin to be harvested in mid-April,
trade sources said.
    They said growers now forecast soybean production this
season at between 7.5 and 7.8 mln tonnes, down from last week's
estimate of 7.7 to eight mln tonnes and the 8.0 to 8.4 mln
tonnes forecast in mid-February.
    The new forecast is still higher than last season's record
total production.
    Private sources put 1985/86 production at a record 7.2 to
7.3 mln tonnes -- 4.2 to 6.4 pct lower than the new forecast
for the current crop. The official figure for 1985/86 is 7.1
mln tonnes, 5.6 to 9.9 pct below this season's new estimates.
    Growers in the past week discovered more empty soybean pods
in the main producing areas of southern Cordoba and Santa Fe
provinces and northern Buenos Aires.
    The crop since January has been hit by high temperatures
and inadequate rainfall. Growers fear they may find more empty
pods and have to further reduce their forecasts of total yield.
    The area sown to soybeans this season was a record 3.7 to
3.8 mln hectares, 10.8 to 13.8 pct higher than the 1985/86
record of 3.34 mln hectares.
    The state of the crop continued to be good in general until
last week but intense, heavy rains since could have caused
damage in areas where rainfall was higher than 100 mm.
    Where the rains were less heavy they were considered
beneficial although too late to improve yield estimates.
    The rains also benefitted maize and sorghum crops in
southern Buenos Aires province but are not expected to
influence production forecasts.
    In other areas, especially western Buenos Aires, where
rainfall was more than 200 mm, parts of the sunflower, maize
and sorghum crops not yet harvested may have been damaged.
    The coarse grain crop harvest was interrupted last week by
rains which also reached over 100 mm in parts of Cordoba, La
Pampa and Santa Fe and almost 90 mm in parts of Entre Rios.
    The area sown with maize this season was between 3.58 and
3.78 mln hectares, two to seven pct less than the 3.85 mln
hectares in 1985/86.
    The yield of 1986/87 maize continued to be forecast at
between 9.9 and 10.1 mln tonnes.
    This estimate is 19.8 to 20.2 pct lower than the 12.4 to
12.6 mln tonnes at which private sources put 1985/86 production
and 21.1 to 22.7 pct lower than the official 12.8 mln tonnes.
    The sunflowerseed harvest has covered 23 to 26 pct of the
area sown and continues in parts of central Buenos Aires
although at a standstill elsewhere due to rain and floods.
    A resumption of full harvesting and assessment of damage is
impossible until rains stop and a spell of a week to 10 days of
sunshine dries the fields.
    The area sown this season was 2.0 to 2.2 mln hectares, down
29.9 to 36.3 pct on last year's record 3.14 mln hectares.
    Sunflowerseed 1986/87 production is still forecast at 2.3
to 2.6 mln tonnes, 34.1 to 41.5 pct below the 1985/86 record of
4.1 mln tonnes.
    The grain sorghum harvest was the least affected by the
rains, advancing steadily in Santa Fe and Cordoba and starting
in La Pampa to cover 14 to 16 pct of the total area sown.
    The area sown was 1.23 to 1.30 mln hectares, 10.3 to 15.2
pct less than the 1.45 mln hectares the previous season.
    Yield estimates remained at 3.2 to 3.5 mln tonnes, 16.7 to
22 pct down on 1985/86 production of 4.1 to 4.2 mln tonnes.


.I 15045
.C
earn
.W
VERTEX INDUSTRIES INC <VETX> 2ND QTR JAN 31 NET.
    CLIFTON, N.J., March 25 -
    Oper shr loss three cts vs loss four cts
    Oper loss 40,870 vs loss 39,827
    Revs 584,855 vs 727,432
    Six mths
    Oper shr loss two cts vs loss two cts
    Oper loss 24,311 vs loss 26,947
    Revs 1,246,992 vs 1,497,251
    NOTE: Current periods exclude net gain of 150,865 dlrs from
termination of retirement plan for salaried employees. Also
excludes gain of 83,100 dlrs from in current qtr and gain
90,400 dlrs in six mths from benefit of tax loss carryforwards.
    Company went public in September 1986.


.I 15046
.C
acq
.W
CYCLOPS <CYL> SAYS DIXONS APPOINTEES RESIGN.
    PITTSBURGH, Pa., March 25 - Cyclops Corp said the three
members of its board appointed last week by <Dixons Group PLC>
had resigned and that it named three Cyclops executives to
replace them.
    Cyclops said the moves followed the announcement earlier
today by Dixons that it received only 20 pct of Cyclops
outstanding common stock under an extended tender offer that
expired yesterday.
    Dixons initially ended its 90.25 dlr a share tender offer
on March 17 after receiving 54 pct of Cyclops shares.
    However, the Securities and Exchange Commission last Friday
pressed Dixons to reopen the offer because the U.K.-based
company had dropped a condition that at least 80 pct of Cyclops
stock be tendered by the close of the offer.
    Dixons then extended the offer until yesterday and earlier
today indicated that a substantial number of tendered Cyclops
shares had been withdrawn, leaving it with only 852,000 shares,
or just over 20 pct of the roughly 4.26 mln Cyclops shares
outstanding.
    Dixons said today that it purchased the tendered shares,
which, when combined with the shares it already holds, gives it
a 21.7 pct stake in Cyclops.
    Cyclops said its reconstituted board includes the three
newly named directors and five outside directors, all of whom
were on the board prior to Dixons tender offer.
    The three Cyclops directors were replaced by Dixons
appointees on March 17 under an agreement reached between the
two companies.


.I 15047
.C
crude
.W
ECUADOR NEGOTIATES WITH NIGERIA FOR LENDING OIL.
    QUITO, March 25 - Earthquake-stricken Ecuador is
negotiating with Nigeria to have the African country lend it
10,000 barrels per day (bpd) of crude for export, Deputy Energy
Minister Fernando Santos Alvite told Reuters.
    He said Ecuador was negotiating a shipments schedule and
the terms of repaying the loan. Ecuador has suspended crude
exports for about five months until it repairs a pipeline
ruputured by a March five tremor.
    Santos Alvite added Ecuador is finalizing details for a
program under which Venezuela would temporarily lend the
country 50,000 bpd for export.


.I 15050
.C
earn
.W
NORTHERN STATES POWER CO <NSP> VOTES QUARTERLY.
    MINNEAPOLIS, MINN., March 25 -
    Qtly div 47-1/2 cts vs 47-1/2 cts prior qtr
    Pay 20 April
    Record 6 April


.I 15051
.C
earn
.W
SUMMIT TAX EXEMPT BOND FUND <SUA> SETS PAYOUT.
    NEW YORK, March 25 -
    Qtrly div 40 cts vs 40 cts prior
    Pay  Aug  14, 1987
    Record April One, 1987


.I 15052
.C
trade
.W
U.S. SENATE TRADE LEADER CONCERNED ABOUT CANADA.
    WASHINGTON, March 25 - The chairman of the U.S. Senate
committee with jurisdiction over trade said he was concerned
about a resolution on bilateral trade negotiations adopted by
the Canadian House of Commons last week.
    The resolution supports negotiation of a bilateral trading
agreement with the United States while protecting Canadian
political sovereignty, social programs, agricultural marketing
systems, the auto industry and Canada's cultural identity.
    Senate Finance Committee chairman Lloyd Bentsen said the
resolution may jeopardize the viability of the proposed free
trade agreement between the two countries, which are each
other's largest trading partners.
    "We need a truly free trade agreement, which means both
countries have to work toward a deal that is mutually
beneficial and comprehensive, a large agreement," the Texas
Democrat said in a statement.
    "I do not question Canada's right to protect its political
sovereignty or cultural identity. However, if these phrases
mean the government of Canada means to take important economic
issues off the table in these negotiations, I am deeply
concerned," he added.
    Bentsen said Canada restricts trade 15 different ways while
the United States uses only six trade restriction methods. He
said if Canada proposes an agreement where both countries get
rid of six methods of trade restriction, it would not be fair
and might not win Senate approval.
    "I am deeply concerned that when the President visits Prime
Minister (Brian) Mulroney next month, he will be presented with
this kind of argument, and I hope he makes it clear -- as I did
when I was in Canada -- that only a mutually beneficial
agreement will be successful," Bentsen said.
    Reagan and Mulroney are scheduled to meet April 5-6 in
Ottawa.
    Bentsen urged Mulroney to withdraw a proposal that would
ban imports of independently produced films into Canada by
non-Canadians, which the senator called a protectionist
measure.


.I 15054
.C
money-fx
.W
******BAKER SAYS U.S. WILLING TO COOPERATE TO STABILIZE EXCHANGE RATES.
Blah blah blah.

.I 15056
.C
money-fx
.W
BAKER SAYS U.S. WANTS TO STABILIZE EXCHANGE RATES.
    WASHINGTON, March 25 - Treasury Secretary James Baker said
the United States and other nations were willing to cooperate
to stabilize foreign exchange rates at the levels that existed
at the time of an international agreement last month.
    "Our position with respect to the dollar goes back to the
Paris Agreement that the currencies were within ranges broadly
consistent with underlying economic conditions," Baker told a
Senate committee.
    Baker continued, "We said further that we and others are
willing to cooperate closely to foster stability in exchange
rates around those levels."
    He referred to a February agreement by six leading
industrial nations to cooperate on monetary matters.
    Baker refused to answer a question whether Japan and
Germany had done enough to stimulate their domestic economies
for the United States to support the dollar.
    "I will not comment because the foreign exchange market
reads more or less than is intended in my statements," Baker
said.
    Baker said that the other signatories recognized that they
must carry their share of the load of correcting external
imbalances that have hindered the world's economy.
    He cited news reports that Germany would increase a
proposed tax cut for 1988 by about five billion marks to
stimulate domestic growth.
    Japan also agreed to consider stimulative measures after
the Japanese budget was made final.
    Baker said those nations were stimulating their economies
in a manner consistent with gains against inflation.


.I 15059
.C
acq
.W
FIRST FEDERAL DELAWARE AGREEMENT EXTENDED.
    WILMINGTON, Del., March 25 - <First Federal Savings Bank>
of Delaware said its agreement to negotiate exclusively for its
sale with <Oxford Financial Group> has been extended until
April 8 from March 18.
    The company said it is in the final stages of talks with
Oxford over the terms of the proposed acquisition.  Under a
nonbinding letter of intent signed in June 1986, Oxford would
pay 11 dlrs per First Federal share, subject to First Federal
shareholder approval.


.I 15060
.C
acq
.W
EDELMAN GROUP IN PLAN TO BUY MORSE SHOE <MRS>.
    WASHINGTON, March 25 - A group led by New York investor
Asher Edelman said Morse Shoe Inc agreed to provide it
confidential company information and that his group would make
an offer to buy Morse only in a friendly, negotiated deal.
    The group also said in a filing with the Securities and
Exchange Commission that its members would not, without Morse
approval, buy or offer to buy any company securities giving the
group a 10 pct or more stake in the company.
    Edelman and his group said his terms held until the earlier
of 90 days from March 3 or the date on which Morse announces a
definite agreement for its sale.
    At the same time, the Edelman group said it cut its stake
in Morse to 8.4 pct from 9.7 pct.


.I 15064
.C
earn
.W
JOHN LABATT SEES GOOD FOURTH QUARTER, YEAR.
    MONTREAL, March 25 - <John Labatt Ltd> anticipates a good
fourth quarter and a new peak in sales and earnings for the
fiscal year ending April 30, president Peter Widdrington told
financial analysts.
    He would not make any specific forecast, but said he was
optimistic for further growth in fiscal 1988 in the company's
brewing and food products operations.
    Labatt's earnings rose to 92.8 mln dlrs in the nine months
ended January 31 from year-earlier 78 mln dlrs. Revenue for the
nine months rose to 3.20 billion dlrs from 2.70 billion dlrs.
    Widdrington said Labatt's three-year business plan, now
being updated, targets total sales of about six billion dlrs,
including 2.50 billion dlrs in the U.S.
    Labatt, Canada's leading brewer, has expanded in the U.S.
food products industry by acquisitions.
    Widdrington said Labatt's strategy for U.S. expansion
stemmed partly from its strong market position in the Canadian
food and beverage industry. The U.S. share of revenues for this
year will be about 35 pct, rising to 40 pct in fiscal 1988, he
said.


.I 15065
.C
acq
.W
HUSKY <HYO> SETS MEETING TO APPROVE MERGER.
    CALGARY, Alberta, March 25 - Husky Oil Ltd said the board
called a special meeting for April 22 for shareholders to vote
on its previously announced agreement for Hong Kong-based
Hutchison Whampoa Ltd and Hongkong Electric Holdings Ltd to
acquire a 43 pct interest in the company.
    The acquisition requires two-thirds approval by Husky
shareholders other than <Nova, An Alberta Corp>, which owns a
57 pct interest in Husky.
    If approved by shareholders, the amalgamation will take
effect April 30, Husky said.
    Following completion, Oil Term Holdings Ltd, a new company
controlled by Nova, will hold a 43 pct stake in Husky.
Hutchison and Hongkong will indirectly hold 43 pct, Victor T.K.
Li will own nine pct and <Canadian Imperial Bank of Commerce>
will have a five pct interest.
    Husky said a special committee of five outside directors
recommended the board approve the transaction after determining
that the deal was in the best interests of Husky and fair to
shareholders.
    Husky previously announced shareholders will have the
option to receive 11.80 Canadian dlrs cash for each common, or
6.726 dlrs cash and one common share of Oil Term Investment
Ltd, which will be controlled by Nova through Oil Term Holdings
and own an insterest in Husky.
    U.S. shareholders will be restricted to the right to
receive 11.80 Canadian dlrs cash per share, which will be paid
in U.S. funds, the company said.


.I 15068
.C
earn
.W
WASHINGTON GAS LIGHT CO <WGL> HIKES PAYOUT.
    WASHINGTON, March 25 -
    Qtly div 45 cts vs 44 cts prior
    Pay May one
    Record April 10


.I 15070
.C
earn
.W
FERC DECISION COULD CUT COLUMBIA GAS <CG> NET.
    WILMINGTON, Del., March 23 - Columbia Gas System Inc said a
Federal Energy Regulatory Commission decision today on natural
gas cost recovery could reduce its 1987 earnings by about 1.25
dlrs a share.
    The company said "this could bring earnings for 1987 below
Columbia's stated goal of earning no less than its 3.18 dlrs
per share dividend." It earned 2.12 dlrs a share in 1986.
    It said management expects to recommend to the board that
the dividend rate be maintained in 1987.
    Columbia Gas said the impact of the FERC decision may be
offset by a one-time accounting change rleated to future tax
liabilities under the new federal tax laws.
    The company recorded these liabilities based on older,
higher tax rates, but an action being considered by the
Financial Accounting Standards Board could result in a gain of
about 1.20 dlrs a share in 1987, it explained.
    "Thus there is a good chance that we will attain our 1987
earnings goal -- although not in the way originally planned,"
Columbia Gas said.
    Columbia Gas said the FERC decision would limit the
recovery of certain gas contract costs by Columbia Gas
Transmission Corp, the company's principal pipeline subsidiary.
    It said the decision specifically excluded from a purchased
gas adjustment filing by the pipeline costs related to
amortizing payments made to producers to reform gas purchase
contracts. These were excluded on the grounds the subsidiary
failed to sufficiently support cost recovery.
    The company said its subsidiary is not precluded from
making a new filing to provide sufficient support.


.I 15071
.C
veg-oil
.W
U.S. OFFERS MORE CREDITS FOR VEG OIL TO N. YEMEN.
    WASHINGTON, March 25 - The U.S. Commodity Credit
Corporation (CCC) has authorized an additional 10.0 mln dlrs in
credit guarantees to cover sales of U.S. vegetable oils to
North Yemen, the U.S. Agriculture Department said.
    The department also said at the request of the North Yemen
Government five mln dlrs in credit guarantees previously
earmarked for sales of wheat have been switched to cover sales
of mixed poultry feed.
    The actions increase the value of credit guarantees for
vegetable oil for the current fiscal year to 38 mln dlrs,
reduce the guarantee coverage for sales of wheat to eight mln
dlrs and increase the coverage for sales of mixed poultry feed
to 10 mln dlrs.
    All exports must be completed by September 30, 1987.


.I 15072
.C
earn
.W
PUERTO RICAN CEMENT CO <PRN> SETS PAYOUT.
    NEW YORK, March 25 -
    Qtly div five cts vs five cts prior
    Pay May 13
    Record April 14
    NOTE: Company said up to 20 pct of dividend payment may be
withheld in accordance with Puerto Rico tax law.


.I 15075
.C
iron-steel
.W
CANADA MAY MONITOR STEEL SHIPMENTS.
    OTTAWA, March 26 - Canada may begin monitoring steel
flowing in and out of the country to determine if any steel is
being illegally "trans-shipped" to the U.S., senior government
trade officials said.
    The officials, asking not to be identified, said the
government will investigate an industry contention that steel 
imported from countries such as South Korea and Taiwan is being
diverted to the U.S. and ultimately exasperating concerns about
the level of Canadian exports south of the border.
    But the senior officials, asking not to be indentified,
said that despite intense pressure from the Reagan
Administration, Ottawa was not considering any kind of formal
limits on Canadian shipments to the U.S.
    "In a sense what I hope we are doing is buying some time,"
said one official who claimed Canadian companies were "fair
traders" in the big American market.
    If approved by the Canadian cabinet, the officials said a 
monitoring system will be established in the next three or four
months.
    "I guess if we find trans-shipment is a problem, we would
have to do something about it," said a trade official.
    Canadian steel shipments to the U.S. have risen to 5.7 pct
of the U.S. market in recent months, almost double the level
just two years ago.
    The increase in Canadian shipments comes at a time of
growing anger in the U.S. over rising steel imports from
several countries in the face of a decline among domestic steel
producers.
    Some U.S. lawmakers have proposed Canada's share of the
American market be limited to 2.4 per cent.
    The Ontario Government has urged Ottawa to require foreign
companies to obtain permits to import steel into the country.
Currently, import licences are required only for carbon or raw
steel, which makes up less than half the steel market.
    Canada exported two billion Canadian dlrs worth of steel in
1986, while importing 944-mln dlrs worth of the product in the
same year.


.I 15077
.C
earn
.W
WESCO FINANCIAL CORP <WSC> 4TH QTR NET.
    PASADENA, Calif., March 25 -
    Shr 79 cts vs 5.05 dlrs
    Net 5,628,000 vs 35,936,000
    Revs 41.8 mln vs 39.4 mln
    Year
    Shr 2.32 dlrs vs 7.24 dlrs
    Net 16,524,000 vs 51,541,000
    Revs 160.2 mln vs 114.9 mln
    Note:  Current qtr figures include securities gain of 2.1
mln dlrs, or 29 cts per share, vs gain of 34.3 mln dlrs, or
4.81 dlrs per share.
    Current year figures include security gain of 4.6 mln dlrs,
or 64 cts per share, vs gain of 41.5 mln dlrs, or 5.83 dlrs per
share.


.I 15078
.C
acq
.W
HELM <H> SELLS ADDITIONAL SHARES IN BAMBERGER.
    NEW YORK, March 25 - Helm Resources Inc said that, pursuant
to the exercise of an overallotment option by underwriters in
Bamberger Polymers INc's initial public offering, it has sold
another 35,000 Bamberger shares and reduced its ownership in
Bamberger to 51 pct from 55 pct.
    To date, Helm has sold 435,000 Bamberger's for 3.5 mln
dlrs.
    Bamberger has sold a total of 600,000 shares and received
net proceeds of about 4.8 mln dlrs since the February 1987
offering.


.I 15079
.C
earn
.W
AMPAL-AMERICAN ISRAEL CORP <AIS.A> YEAR NET.
    NEW YORK, March 25 -
    Shr 27 cts vs 25 cts
    Net 6,416,000 vs 5,988,000
    Revs 112.2 mln vs 99.8 mln
    NOTE: 1985 includes extraordinary income of 647,000 dlrs or
three cts/shr. 1985 restated.


.I 15080
.C
cocoa
.W
COCOA COUNCIL CHAIRMAN SEEKS BUFFER COMPROMISE.
    LONDON, March 25 - International Cocoa Organization, ICCO,
Council chairman, Denis Bra Kanon, said he will attempt to
reach a compromise on buffer stock rules for the International
Cocoa Agreement.
    Bra Kanon called for bilateral consultations among
producers and consumers Thursday morning to resolve outstanding
differences on how much non-member cocoa the buffer stock can
purchase and differentials to be fixed for different origin
cocoa, consumer delegates told reporters.
    Bra Kanon is expected to meet with about eight delegations
individually in attempt to iron out remaining problems.
    Producers and consumers indicated support "in principle" for
the draft buffer stock rules package formulated over the past
week by a small working group, consumer delegates said.
    Despite remaining differences delegates remained confident
a buffer stock accord would be agreed to by Friday when the
council session ends, but certain technical points need further
clarification, the delegates said.
    Certain consumers are concerned that differentials included
in the draft buffer stock package are out of line with market
realities, consumer delegates said.
    Unless these are modified there are fears it would promote
purchases of quality cocoas, such as Ghana origin, which are
normally required by manufacturers, they said.
    Restrictions on buffer stock purchases of non-member cocoa
might lead to a supply overhang in Malaysian cocoa, which would
depress prices, they added.


.I 15081
.C
earn
.W
SNC GROUP EXPECTS HIGHER 1987 EARNINGS, SALES.
    MONTREAL, March 25 - <SNC Group Inc> expects 1987 earnings
to rise to 1.20-1.40 dlrs a share from 91 cts a share last
year, with revenues climbing to about 430 mln dlrs from last
year's 350 mln dlrs, president Alex Taylor said before the
annual meeting.
    SNC, Canada's second biggest engineering and construction
group, became the country's largest ammunition manufacturer
last year with its 90 mln dlr acquisition of Canadian Arsenals
Ltd from the Canadian government.
    The impact of that and several smaller deals will be felt
fully in 1987, Taylor said.
    Defense preoducts and other manufacturing operations will
account for more than half SNC's total 1987 revenues, helping
to counterbalance the more cyclical engineering and
construction acivities, Taylor said.
    Last year, SNC earned 8.7 mln dlrs, including a small
extraordinary gain.
    In 1987, a total manufacturing activities will generate
about 235 mln dlrs in revenues, and engineering and
construction about 200 mln dlrs, he said, adding that defense
products operations should be a major contributor to earnings.


.I 15082
.C
acq
.W
MINE SAFETY <MNES> SELLS SOUTH AFRICA UNIT.
    PITTSBURGH, March 25 - Mine Safety Appliances Co said it
will sell through its German subsidiary, Auergesellschaft, its
controlling interest in MSA (Africa), (PTY) Ltd, of
Johannesburg, South Africa to Boart International, a wholly-
owned subsidiary of Anglo American Corp of South Africa Ltd
<ANGL>.
    The company said the terms of the sale were not disclosed.
    The company will operate as Boart-MSA (PTY) Ltd, it said.
    L.N. Short Jr, president of the company, said it sold the
unit because of slumping profits due to South Africa's economic
decline.


.I 15083
.C
earn
.W
MEDAR INC <MDXR> 4TH QTR DEC 31 LOSS.
    FARMINGTON HILLS, Mich., March 25 -
    Shr loss 10 cts vs loss nine cts
    Net loss 558,800 vs loss 469,200
    Sales 5.5 mln vs two mln
    Nine mths ended Dec 31
    Shr profit two cts vs loss four cts
    Net profit 91,045 vs loss 207,000
    Sales 17.3 mln vs 8.4 mln
    Avg shrs 5,465,433 vs 5,037,819
    Year ended March 31
    Shr loss 28 cts vs profit 19 cts
    Net loss 1,356,321 vs profit 818,723
    Sales 10.9 mln vs 12.2 mln
    Avg shrs 4,862,499 vs 4,683,591
    Note: Medar changed end of fiscal year to December 31 to be
more in phase with business cycle of its major customers.


.I 15084
.C
earn
.W
MEDAR <MDXR> CHANGES FISCAL YEAR.
    FARMINGTON HILLS, Mich., March 25 - Medar Inc said it
changed the end of its fiscal year to December 31 from March
31.
    The company, in reporting its annual results, said the
change was made to bring its financial reporting in phase with
the order cycle of its major customers.
    Medar earlier said it lost 558,800 dlrs in its final 1986
quarter, compared to a loss of 469,200 dlrs in the same 1985
quarter.


.I 15086
.C
acq
.W
******U.S. SECURITIES INDUSTRY ASSN BACKS RESTRAINTS ON TAKEOVERS, INSIDER TRADING.
Blah blah blah.

.I 15087
.C
earn
.W
CHEMFIX TECHNOLOGIES INC <CFIX> 2ND QTR NET.
    NEW ORLEANS, March 25 - Ended Feb 28
    Shr profit one ct vs loss four cts
    Net profit 53,040 vs loss 255,568
    Revs 2,252,246 vs 755,605
    Six mths
    Shr profit three cts vs loss eight cts
    Net profit 217,884 vs loss 517,538
    Revs 4,895,720 vs 1,569,662


.I 15091
.C
acq
.W
ALLIS-CHALMERS <AH> SELLS SWISS UNIT.
    MILWAUKEE, Wisc., March 25 - Allis-Chalmers Corp said it
has sold its Elex Ag unit in Zurich, Switzerland, to private
investors for an undisclosed amount.
    The company said Elex produces electrostatic precipitators
used in air pollution control.


.I 15093
.C
earn
.W
FLORIDA EMPLOYERS INSURANCE CO <FLAE> YEAR 1986.
    GEORGETOWN, Grand Cayman, British West Indies, March 25 -
    Shr 29 cts vs nine cts
    Net 651,000 vs 214,000
    NOTE: 1986 net includes loss of 500,000 dlrs for
extraordinary item.


.I 15094
.C
jet
.W
SHELL OIL GETS 104.3 MLN DLR CONTRACT.
    WASHINGTON, March 25 - Shell Oil Co of Houston has been
awarded a 104.3 mln dlr contract for jet fuel, the Defense
Logistics Agency said.


.I 15097
.C
earn
.W
NIKE INC <NIKE> 3RD QTR FEB 28 NET.
    BEAVERTON, Ore., March 25 -
    Shr 12 cts vs 30 cts
    Net 4,255,000 vs 11.5 mln
    Revs 199.4 mln vs 258.7 mln
    Nine mths
    Shr 64 cts vs 1.19 dlrs
    Net 24.4 mln vs 45.5 mln
    Revs 639.7 mln vs 824.3 mln


.I 15098
.C
earn
.W
ZENITH NATIONAL INSURANCE <ZNAT> QTLY DIVIDEND.
    ENCINO, Calif., March 25 -
    Shr 20 cts vs 20 cts prior qtr
    Pay May 14
    Record April 30
    Note: Full name Zenith National Insurance Corp.


.I 15099
.C
earn
.W
REDKIN LABORATORIES INC <RDKN> QTLY DIVIDEND.
    CANOGA PARK, Calif., March 25 -
    Shr five cts vs five cts prior qtr
    Pay April 17
    Record April 3.


.I 15101
.C
earn
.W
COOPERVISION INC <EYE> QTLY DIVIDEND.
    PALO ALTO, Calif., March 25 -
    Shr 10 cts vs 10 cts prior qtr
    Pay April 17
    Record April 9.



.I 15103
.C
acq
.W
U.S. SECURITIES GROUP BACKS INSIDER RESTRAINTS.
    WASHINGTON, March 25 - The Securities Industry Association
backed a variety of restraints on insider trading and hostile
corporate takeovers and asked Congress to define insider
trading in law.
    The industry trade association called on U.S. securities
firms to take steps to protect sensitive corporate secrets to
guard against illegal trading by employees.
    The association also backed broad federal restrictions on a
variety of tactics used in hostile corporate takeovers.
    But it said investment banking firms should be allowed to
continue to engage in both arbitrage and merger and acquisition
activities so long as those functions were kept separate.
    The SIA, in a report adopted yesterday by its board of
directors, backed a higher enforcement budget for the federal
Securities and Exchange Commission and called on U.S. stock
exchanges to beef up their supervision of member brokerages.
    The report said securities firms "should be more rigorous in
restricting sensitive information on a need-to-know basis."
    It said firms should train their employees to understand
the need for confidentiality of market-sensitive information.
    It said legislation to define insider trading should avoid
expanding current law in a way that would impede the market.
    It said an insider trading definition should exempt a
securities firm from liability for law violations by its
employees unless the firm had participated in or was aware of
the wrongdoing.
    In the mergers and acquisitions area, the association
advocated a ban on greenmail payments or poison pill takeover
protection plans without prior shareholder approval.
    It said a group or individual buying up a company's stock
should be required to file a public disclosure statement before
acquiring more than five pct of the company's shares. Under
current law, disclosure may be made as late as ten days after
exceeding the five pct limit.
    The association said all purchases exceeding 20 pct of a
company's voting stock shouls be made only through a tender
offer open to all shareholders. Under current law there is no
limit on open market purchases.
    The group said the federal government should preempt state
regulation of defensive takeover tactics.
    The group said all tender offers should remain open for at
least 30 calendar days.
    The current requirement is expressed in business days.
    It said so-called "lockup" devices, in which securities are
issued to a friendly investor to seal a takeover deal or fend
off an unfriendly predator should be limited to 18.5 pct of the
target company's total common stock.
    Association president Edward O'Brien said the group acted
out of concern over the ad hoc restructuring of corporate
America on Wall Street and investor fears about insider trading
and fairness in the marketplace.


.I 15104
.C
crude;nat-gas;
.W
TEXACO <TX> RESERVES DOWN DESPITE LOWER OUTPUT.
    NEW YORK, March 25 - Texaco Inc's oil and gas reserves
declined in 1986 despite reduced production and upward
revisions in the company's previous reserve estimates, its
annual report said.
    The statement of the report's auditor was qualified -- as
was the previous one -- because of the unkonwn final impact of
the judgement won by Pennzoil Co <PZL> against Texaco on
charges Texaco interfered with Pannzoil's contract to acquire
Getty Oil Co.
    The auditor's point out, as Texaco has in the past, the
company's loss of any of several pending court decisions in
this case could cause it "to face prospects such as having to
seek protection of its assets and business pursuant to the
bankruptcy and reorganization provisions of Chapter 11" of the
federal bankruptcy code.
    Commenting on a Texas Court of Appeals ruling which reduced
Pennzoil's judgement by two billion dlrs, to 9.1 billion dlrs,
Texaco said it will file a motion for a rehearing by the
appeals court no later than March 30.
    Texaco said the proven crude oil reserves of the company
and its consolidated subsidiaries totaled 2.54 billion barrels
at the end of 1986, down from 2.69 billion a year earlier.
    However, inclusion of Texaco's equity in the Eastern
Hemisphere reserves of a nonsubsidiary company limited the
decline to 2.91 billion barrels from 3.00 billion at the end of
1985.
    Worldwide production by the consolidated subsidiaries
declined to 341 mln barrels last year from 362 mln in 1985 and
upward revisions in previous reserve estimates rose to 143 mln
barrels from 117 mln, respectively.
    Texaco said the largest drop in reserves came in the United
States -- where the total dropped to 1.46 billion barrels from
1.55 billion.
    The company said U.S. liquids production averaged 660,000
barrels per day last year, down from 714,000 in 1985, with
about 44 pct of the decline -- some 24,000 barrels per day --
representing high-cost production shut-in or curtailed in
response to the decline in crude oil prices during 1986.
    Texaco said its natural gas reserves totaled 8.16 trillion
cubic feet at year end, down from 8.87 trillion cubic feet at
the end of 1985.


.I 15106
.C
hog;livestock;
.W
INT'L MINERALS PROJECT TO BOOST HOG LEAN WEIGHT.
    NORTHBROOK, ILL., March 25 - International Minerals and
Chemical Corp said its board approved a 50 mln dlrs budget over
the next several years to build production facilities for a
newly developed product to be used to improve the lean weight
of hogs.
    The new product, porcine somatotropin (PST) is described as
a natural bio-synthetic protein that improves the lean weight
and rate of weight gain, as well as reduces the cost of feed
for market hogs, the company said.
    Specific details of the PST production project, including
sites for proposed facilities and engineering plans, were not
disclosed. International Minerals said it set a completion
target for the spring of 1989, by which time necessary Food and
Drug Administration approvals are expected to be obtained.


.I 15108
.C
earn
.W
PULITZER PUBLISHING CO <PLTZC> DECLARES QTLY DIV.
    ST. LOUIS, March 25 -
    Qtly div 10 cts vs 10 cts prior
    Pay May 1
    Record April 10


.I 15109
.C
earn
.W
FEDERAL CO <FFF> SETS REGULAR PAYOUT.
    MEMPHIS, Tenn., March 25 -
    Qtly 29-1/2 cts vs 29-1/2 cts prior
    Payable June 1 
    Record May 1.


.I 15111
.C
earn
.W
SOUTHWESTERN BELL <SBC> SEES EARNINGS DILUTION.
    ST. LOUIS, Mo., March 25 - Southwestern Bell Corp said that
its planned acquisitions of cellular telephone and paging
systems, including those of <Metromedia Inc>, will result in
some initial earnings dilution and an increase in debt ratio.
    In a letter to shareholders in its 1986 annual report, the
regional Bell company did not indicate the degree of earnings
dilution it expects from the acquisitions, which total some
1.38 billion dlrs. However, the company said the rise in its
debt ratio will be temporary and will leave its debt level
within an acceptable range.
    In its 1986 yearend financial statement, Southwestern Bell
listed a debt-to-equity ratio of 43.4 pct, down slightly from
43.7 pct in 1985.
    In 1986, the company earned 1.02 billion dlrs, or 10.26
dlrs a share, compared with 996.2 mln dlrs, or 10 dlrs a share
in 1985. Revenues dipped to 7.90 billion dlrs from 7.93 billion
dlrs.
    Southwestern Bell said it expects the new tax law to have a
negative impact on its cash flow, due mainly to the loss of
investment tax credits.
    By mid-year, however, the company said a reduced corporate
tax rate should have a positive impact on its net income and
cash flow.
    In addition, the company said it is projecting a 1.7 pct
gain in customer telephone lines and a three to four pct
increase in long distance calling volumes.
    Southwestern Bell said 1987 capital expenditures will be
lower that the 1.97 billion dlrs spent in 1986, a year in which
expenditures were held below budget.


.I 15113
.C
iron-steel;trade;
.W
BRAZIL WANTS TO INCREASE STEEL EXPORTS TO U.S.
    RIO DE JANEIRO, MARCH 25 - Brazil wants to increase its
steel exports to the United States, now limited because of
tough import restraints set in 1984 by the Reagan
administration, a spokeswoman for the Brazilian Steel Institute
(IBS) said.
    Brazilian and U.S. Trade officials held the first of a
three-day meeting today in Brasilia to discuss the issue.
    In 1984, after three months of painstaking negotiations,
the U.S. Government reached accords with seven steel-exporting
nations - Australia, Brazil, Japan, Mexico, Spain, South Africa
and South Korea - to reduce their shipments to the United
States by about 30 pct in 1985.
    The 1984 restraints established that for 1987 Brazil's
steel exports to the U.S. Could not exceed 632,000 tonnes,
increasing to 640,000 tonnes in 1988 and 670,000 tonnes in
1989, the last of the five-year deadline set by the agreements.
    Brazilian officials are trying to increase Brazil's export
share of non-flat products to the U.S. Market.
    The spokeswoman said there were reports of domestic supply
problems in the United States.


.I 15118
.C
acq
.W
*****LEAR SIEGLER HOLDING CORP PLANS TO DIVEST AEROSPACE SUBSIDIARY.
Blah blah blah.

.I 15119
.C
earn
.W
******VARITY CORP YEAR SHR LOSS 21 CTS VS LOSS 16 CTS.
Blah blah blah.

.I 15120
.C
earn
.W
NORDSON <NDSN> SETS 3-FOR-2 SPLIT.
    WESTLAKE, Ohio, March 25 - Nordson Corp said its board
declared a 3-for-2 stock split to be paid as a 50 pct stock
dividend on April 30 to shareholders of record April 10.
    As a result, the number of shares outstanding will increase
to 10.2 mln from 6.8 mln, the maker of industrial equipment
said.


.I 15121
.C
trade
.W
******BALDRIGE SEES U.S. TRADE DEFICIT STARTING TO DECLINE IN FEB OR MARCH DATA.
Blah blah blah.

.I 15124
.C
trade
.W
BALDRIGE SEES U.S. TRADE GAP DROPPING SOON.
    WASHINGTON, March 25 - Commerce Secretary Malcolm Baldrige
said the U.S. trade deficit should start to decline soon,
possibly in the figures for February or March.
    "We could see the trade deficit start down in February or
March," Baldrige said in an appearance before the Senate
Governmental Affairs Committee.
    He predicted the trade deficit, which was 170 billion dlrs
in 1986, would decline by 30 to 40 billion dlrs in 1987 and in
1988.
    Baldrige said he was making his prediction without having
seen the February trade figures, but he said that the volume of
imports has dropped beginning with the fourth quarter of 1986
and will continue to drop in this quarter.
    The eventual turnaround in the monthly trade figures will
reflect the impact of the decline in the dollar, Baldrige said.
    Ealier, Treasury Secretary James Baker told the committee
that the trade deficit had levelled off, but Baldrige said he
was more optimistic, adding, "I think we turned the corner in
February."


.I 15125
.C
ship
.W
NORMAL WORK RESUMES AT NEW ZEALAND PORTS.
    WELLINGTON, March 26 - Normal work has resumed at New
Zealand ports as negotiations between harbour board workers and
employers continue.
    Wellington Harbour Board Workers' Union secretary Ross
Wilson told reporters talks late yesterday ended with agreement
to take unresolved issues before an industrial conciliator.
    Wilson said the only remaining issue is the length of the
union award. The dispute originally was about wage rates and
the form of industry negotiations.
    Cook Strait ferry sailings resumed after Marlborough
Harbour Board workers returned to work this morning, ending
their industrial action a day early.
    The Waterside Workers' Federation, which struck for most of
last week and held more than one mln tonnes of shipping in
ports, meets on Monday and Tuesday in conciliation with the
Waterfront Employers' Association.
    Union Secretary Sam Jennings said: "We've got two days of
talks. If it's not all cleaned up by then ... I don't know what
will happen."


.I 15126
.C
earn
.W
VARITY CORP <VAT> 4TH QTR JAN 31 LOSS.
    TORONTO, March 25 -
    Shr loss 13 cts vs loss one ct
    Net loss 18,600,000 vs profit 3,300,000
    Revs 394.0 mln vs 351.0 mln
    YEAR
    Shr loss 21 cts vs loss 16 cts
    Net loss 23,300,000 vs profit 3,900,000
    Revs 1.36 billion vs 1.29 billion
    Note: Current yr loss includes reorganization charge of
15.2 mln dlrs vs yr-ago reorganization charge of 17.6 mln dlrs.
    Shr after preferred divs.
    U.S. dlrs.


.I 15127
.C
earn
.W
INDIANA FEDERAL <IFSL> 4TH QTR NET.
    VALPARAISO, Ind., March 25 -
    Net 492,000 vs 677,000
    Year
    Net 2,650,000 vs 2,566,000
    NOTE: Company's full name is Indiana Federal Savings and
Loan Association. Per share information not available. Bank
went public on February 11, 1987.


.I 15128
.C
acq
.W
RUBBERMAID <RBD> COMPLETES ACQUISITIONS.
    WOOSTER, Ohio, March 25 - Rubbermaid Inc said it completed
the previously announced acquisitions of Viking Brush Ltd, a
Canadian maker of brushes, brooms and other cleaning aids, and
the Little Tikes' manufacturing licensee in Ireland.
    Terms were not disclosed.
    The acquisition of the Tikes' licensee is part of the
expansion of Little Tikes in the European toy market.


.I 15130
.C
earn
.W
CRYSTAL OIL CO <COR> 4TH QTR LOSS.
    NEW YORK, March 25 - 
    Oper shr loss 16 cts vs loss 44 cts
    Oper net loss 8,926,000 vs loss 14.4 mln
    Revs 9,920,000 vs 21.2 mln
    Year
    Oper shr loss 4.30 dlrs vs loss 2.24 dlrs
    Oper net loss 221.8 mln vs loss 53.7 mln
    Revs 51.4 mln vs 94.4 mln
    Note: Oper net excludes losses from discontinued operations
of 228,000 dlrs vs 4,253,000 dlrs for qtr and 10.4 mln dlrs vs
14.2 mln dlrs for year.


.I 15131
.C
acq
.W
LEAR-SIEGLER HOLDING TO DIVEST AEROSPACE UNIT.
    NEW YORK, March 25 - Forstmann Little and Co said Lear
Siegler Holding Corp plans to divest its aerospace group
subsidiary, comprised of the Defense Electronics Group and the
Components Group.
    Divestitures had been expected since Lear-Siegler, a
diversified conglomerate, was acquired last December in a 2.1-
billion-dlr-leveraged buyout by the Wall Street firm of
Forstmann Little.
    Lear's aerospace group revenues for fiscal 1987 are
expected to be about 700 mln dlrs, said Forstmann.
    The Defense Electronics Group designs and manufactures
weapons, management systems, flight control systems, remotely
piloted vehicles and reference and navigation systems, mainly
for military markets.
    The Defense Group subsidiaries are Astronics Corp, which is
based in Santa Monica, Calif., and employs 1,076 people;
Instrument and Avionic Systems Corp, based in Grand Rapids,
Mich., and employs 3,479 people; International Corp, based in
Stamford, Conn., and employs 266 people; and Development
Sciences Corp, based in Ontario, Calif., and employs 237
people.
    The Components Group manufactures pumps, bearings, and
other industrial components as well as nuclear control drive
rod mechanisms and valves.
    The Group's subsidiaries include Power Equipment Corp,
based in Cleveland, which employs 880 people; Energy Products
Corp, based in Santa Ana, Calif., which employs 755 people; 
Romek Corp, based in Elyria, Ohio, which employs 262 people;
and Transport Dynamics in Santa Ana, which employs 254 people.
    Overall, Lear's Aerospace Group's eight subsidiaries
employs 7,200 people.
    Lear Siegler said it plans to retain Management Services
Corp, engaged in aircraft maintenance modification for various
Department of Defense agencies.
    Morgan Stanley and Co will act as financial advsiors for
the group's divestitures.
    Last month, Lear Siegler said it planned to sell its Smith
and Wesson handgun business, Starcraft Recreational Products
Ltd, the Peerless truck trailer operations, and other units, as
part of its restructuring plans.
    Lear apparently will retain its Piper Aircraft unit.


.I 15132
.C
earn
.W
CHEMFIX TECHNOLOGIES <CFIX> 2ND QTR FEB 28 NET.
    NEW ORLEANS, March 25 -
    Shr profit one ct vs loss four cts
    Net profit 53,040 vs loss 255,568
    Rev 2,252,246 vs 755,605
    Six months
    Shr profit three cts vs loss eight cts
    Net profit 217,884 vs loss 517,538
    Rev 4.9 mln vs 1.6 mln
    NOTE: Company's full name is Chemfix Technologies Inc.


.I 15133
.C
earn
.W
FEDERAL-MOGUL CORP <FMO> SETS REGULAR DIVIDEND.
    SOUTHFIELD, Mich., March 25 - 
    Qtly div 40 cts vs 40 cts prior
    Pay June 10
    Record May 27


.I 15134
.C
earn
.W
IOWA RESOURCES INC <IOR> DECLARES QTLY DIVIDEND.
    DES MOINES, March 25 -
    Qtly div 41 cts vs 41 cts prior
    Pay May 1
    Record April 8


.I 15135
.C
gas;crude;
.W
******EIA SAYS DISTILLATE STOCKS OFF 3.2 MLN BBLS, GASOLINE UP 2.2 MLN, CRUDE UP 7.5 MLN.
Blah blah blah.

.I 15136
.C
housing
.W
U.S. HOME RESALES UP IN FEBRUARY, REALTORS SAY.
    WASHINGTON, March 25 - The National Association of Realtors
said sales of previously owned homes rose six pct during
February from January levels to a seasonally adjusted annual
rate of 3.69 mln units.
    The realtors' group said the sales rise was apparent across
the country and reflected lower mortgage interest rates as well
as more housing demand.
    Actual resales of homes during February totaled 241,000, up
11.6 pct from the January total of 216,000, the association
said.


.I 15138
.C
oilseed;soybean;
.W
LOWER U.S. SOYBEAN LOAN IDEA SHARPLY CRITICIZED.
    WASHINGTON, March 25 - U.S. soybean lobbyists and
congressional aides criticized a proposal from a senior
Agriculture Department official that Congress allow the U.S.
soybean loan level to be officially lowered to 4.56 dlrs per
bushel next year.
    "I don't know who in Congress would propose that happening.
Politically it would be totally unacceptable," an aide to a
senior farm-state senator said.
    USDA undersecretary Daniel Amstutz said this week that
Congress should give USDA authority to keep the soybean loan 
at its current effective rate of 4.56 dlrs per bushel rather
than increasing it to its minimum allowed level of 4.77 dlrs.
    "I'm convinced that Congress will not go along with this,"
American Soybean Association President Dave Haggard said.
    Amstutz told reporters following a senate hearing that if
the soybean loan rate were 4.56 dlrs, USDA could then consider
ways to make U.S. soybeans more competitive.
    His comments were seen as possibly indicating what the  the
administration's position is in the debate over what should be
done to make soybeans competitive and at the same time protect
soybean farmers' income.
    Using soybean specific certificates to further buydown the
loan rate or implementation of a marketing loan have been
pointed to as the most effective ways to get soybean prices
competitive. USDA secretary Richard Lyng, however, continues to
maintain his opposition to a marketing loan, saying such a move
would be too costly.
    "There will be alot of other options that will be
considered before Congress looks at that one (the Amstutz
proposal," said Bill O'Conner, aide to Rep. Edward Madigan
(R-Ill), ranking minority leader of the Agriculture Committee.
    "Anybody representing large groups of soybean producers
would not be very excited about supporting a lower soybean
loan," O'Conner said.
    Congress may very likely look at the soybean loan and
decide that they cannot increase it from its current 5.02 dlr
basic rate, but that there has to be something mandated to
increase soybean's competitiveness, David Graves, aide to Sen.
Thad Cochran (R-Miss) said. Cochran, a staunch supporter of a
soybean marketing loan, would support a soybean loan of 5.02 or
4.77 dlrs with a certificate buydown, Graves said.


.I 15139
.C
earn
.W
FIDUCIARY TRUST CO IN FIVE-FOR-ONE STOCK SPLIT.
    NEW YORK, March 25 - <Fiduciary Trust Co International>
said its shareholders at the annual meeting approved a
five-for-one stock split effective May 15, 1987, to holders of
record on April 15, 1987.
    The company said the split would increase the number of
authorized common shares from 440,000 to 2,200,000 shares
issued. In addition, the company said it authorized another
800,000 shares, but would not issue them at this time.
    The company also changed the stock's par value from 10 dlrs
a share to 2.50 dlrs a share.
    It explained it transferred 1,100,000 dlrs from its
undivided profits account to its capital account in order to
raise the new par value from two dlrs, under the five-for-one
split, to 2.50 dlrs.


.I 15140
.C
acq
.W
MODULAIRE <MODX> BUYS BOISE HOMES PROPERTY.
    SAN FRANCISCO, March 25 - Modulaire Industries said it
acquired the design library and manufacturing rights of
privately-owned Boise Homes for an undisclosed amount of cash.
    Boise Homes sold commercial and residential prefabricated
structures, Modulaire said.


.I 15146
.C
earn
.W
LA QUINTA MOTOR INNS INC<LQM>3RD QTR FEB 28 NET.
    SAN ANTONIO, Texas, March 25 - 
    Shr profit 25 cts vs loss nine cts
    Net profit 3,433,000 vs loss 1,310,000
    Revs 37.1 mln vs 39.0 mln
    Nine mths
    Shr profit 28 cts vs profit 27 cts
    Net profit 3,883,000 vs profit 3,908,000
    Revs 133.2 mln vs 132.0 mln
    Avg shrs 13.8 mln vs 14.2 mln
    Note: Current net includes gain on sale of 31 inns of
7,719,000 dlrs for qtr and 7,975,000 dlrs for nine mths.


.I 15147
.C
acq
.W
******KANSAS CITY SOUTHERN INDUSTRIES SAYS IT EAGER TO PURCHASE SOUTHERN PACIFIC RAILROAD.
Blah blah blah.

.I 15149
.C
trade
.W
U.S. CHIPMAKERS URGE SANCTIONS AGAINST JAPAN.
    WASHINGTON, March 25 - The Semiconductor Industry
Association urged the U.S. government to impose trade sanctions
against Japan for violating the U.S.-Japan Semiconductor Trade
Agreement.
    In a letter to Treasury Secretary James Baker the group
said sanctions should be imposed against Japanese chipmakers as
of April 1 and should continue until the United States is
satisfied that there is full compliance with the agreement.
    The group said action by Japan to cut back on semiconductor
exports is not what is required.
    "America's interests require that agreements be honored and
that U.S. industries not bear the burden for the persistent
unwillingness or inability of the government of Japan to
deliver on its commitments," the trade group said.
    The White House Economic Policy Council is expected to
discuss possible sanctions against Japan at a meeting scheduled
for Thursday.
    The trade group said Japan has not lived up to the terms of
the agreement last year which was aimed at ending Japanese
dumping of semiconductors and at opening Japanese markets to
foreign-based manufacturers.


.I 15155
.C
gas;crude;
.W
RECENT U.S. OIL DEMAND UP 0.1 PCT FROM YEAR AGO.
    WASHINGTON, March 25 - U.S. oil demand as measured by
products supplied rose 0.1 pct in the four weeks ended March 20
to 16.16 mln barrels per day from 16.15 mln in the same period
a year ago, the Energy Information Administration (EIA) said.
    In its weekly petroleum status report, the Energy
Department agency said distillate demand was off 0.1 pct in the
period to 3.258 mln bpd from 3.260 mln a year earlier.
    Gasoline demand averaged 6.72 mln bpd, off 1.2 pct from
6.80 mln last year, while residual fuel demand was 1.38 mln
bpd, off 2.1 pct from 1.41 mln, the EIA said.
    Domestic crude oil production was estimated at 8.35 mln
bpd, down 7.8 pct from 9.06 mln a year ago, and gross daily
crude imports (excluding those for the SPR) averaged 3.44 mln
bpd, up 16.3 pct from 2.95 mln, the EIA said.
    Refinery crude runs in the four weeks were 11.90 mln bpd,
up 1.4 pct from 11.74 mln a year earlier, it said.
    In the first 78 days of the year, refinery runs were up 1.8
pct to an average 12.25 mln bpd from 12.04 mln in the year-ago
period, the EIA said.
    Year-to-date demand for all petroleum products averaged
16.32 mln bpd, up 1.8 pct from 16.04 mln in 1986, it said.
    So far this year, distillate demand rose 0.1 pct to 3.31
mln bpd from 3.30 mln in 1986, gasoline demand was 6.60 mln
bpd, up 0.1 pct from 6.59 mln, and residual fuel demand fell
0.4 pct to 1.42 mln bpd from 1.43 mln, the EIA said.
    Year-to-date domestic crude output was estimated at 8.41
mln bpd, off 7.7 pct from 9.11 mln a year ago, while gross
crude imports averaged 3.96 mln bpd, up 28.1 pct from 3.09 mln,
it said.


.I 15156
.C
acq
.W
******FED APPROVES CHEMICAL BANK ACQUISITION OF TEXAS COMMERCE BANCSHARES.
Blah blah blah.

.I 15158
.C
acq
.W
KANSAS CITY <KSU> READY TO BUY SOUTHERN PACIFIC.
    NEW YORK, March 25 - Kansas City Southern Industries Inc
said it is ready to promptly purchase the Southern Pacific
Transportation Co from Santa Fe Southern Pacific Corp <SFX> if
the Interstate Commerce Commission rejects Sante Fe's attempt
to reopen the merger of Southern and the Atchison, Tokepa and
Santa Fe Railway.
    In a filing with the ICC late today, the company outlined
four conditions of its offer to acquire Southern Pacific.
    Among the conditions are that Santa Fe enter into an
agreement to indemnify Kansas City for any contigent liabilites
of Southern Pacific existing as of the closing date, and that
the financial condition of Southern remain largely unchanged
from today onward.
    "We are willing, even eager, to make a fair market value
offer in cash for the Southern Pacific," said Kansas City
Southern president and chief executive officer Landon H.
Rowland.
    "This offer disproves the constant derogation of the
Sourthern Pacific by SFSP management, best exemplified by SFSP
Chief Executive John Schmidt's comment in ICC hearings that the
Southern Pacific was 'bankrupt,'" said Rowland.
    He said that merging Southern with Kansas City will achieve
the benefits of an end-to-end merger while preseving the
independece of the Southern Pacific versus its existing prime
competitor, Santa Fe.
    Kansas said that Southern's management had estimated the
value of the railroad in 1983 in the range of 281 mln dlrs to
1.2 billion dlrs.
    It said that Morgan Stanley and Co Inc and Salomon Brothers
Inc, hired in 1983 to advise Southern and Santa Fe in their
merger, appraised Southern as worth between 500 mln dlrs and
800 mln dlrs less than Southern's own internal valuations.
    Kanasa City Southern said it will make an offer for
Southern after its books, records and properties are examined.
    "Once that examination has been completed (and even in the
absence of a willingnes of SFSP to negotiate) KCSI will make an
offer in writing...." said the company.
    Kansas also said it argued in the ICC filing that Santa Fe
had not met the legal requirements justifying the Commission's
reconsideration of the proposed merger of Santa Fe and Southern
Pacific, two railroads that it said basically parallel each
other throughout their routes.
    ICC voted four to one last summer to reject the merger as
inherently anticompetitive. Kansas said Santa Fe in petitioning
for reconsideration now argues that the trackage agreements
with the Union Pacific, the Denver and Rio Grande Western and
other railroads, adds to the value of the merger.


.I 15159
.C
acq
.W
GENCORP <GY> BID COULD BE RAISED, GROUP SAYS.
    BY CAL MANKOWSKI, Reuters
    NEW YORK, March 25 - An investor group said it might be
willing to raise its 100 dlr per share offer for GenCorp but so
far the company has turned down requests for a meeting.
    "We might be able to see some additional value if we could
meet" and get more financial data, said Joel Reed, speaking for
the investor group.
    Reed told Reuters that GenCorp chairman A. William Reynolds
"was not interested in sitting down and talking with us at this
time." Cyril Wagner sought the meeting in a recent telephone
conversation with Reynolds, Reed said.
    Wagner and Brown, along with AFG Industries Inc <AFG>,
recently launched a surprise tender offer for GenCorp. The
offer is worth 2.23 billion dlrs.
    Reed said under the circumstances the 100 dlr per share
tender offer, which expires April 15, is a fair offer. GenCorp
gained 3-1/2 to 114 today on the NYSE.
    Reed outlined a plan to reshape GenCorp in the event his
group wins control. He said aerospace, soft drink bottling and
entertainment units are potential divestiture candidates. He
said the tire business, which the group wants to keep, may be
more viable if merged with another tire company.
    "One option would be to try to grow the tire business
through combination or an acquisition," Reed said. He said he
believes such a merger could create a stronger force in the
tire industry.
    Gary Miller, chief financial officer of AFG, said his
company has a record of acquiring mature businesses and
boosting productivity. Automation and incentives tied to profit
sharing have been used with success, he said.
    In the case of GenCorp's RKO General broadcasting stations,
Reed said the plan of the partners is to step into GenCorp's
shoes and proceed with plans to  sell the stations.
    The partners said if they succed in acquiring GenCorp they
intend to consummate sale of WOR-TV in New York to MCA Inc
<MCA>. GenCorp last year entered into an agreement to sell the
station for 387 mln dlrs.
    The partners also said if they acquire Gencorp they would
also proceed with the proposed sale of KHJ-TV in Los Angeles to
Walt Disney Co <DIS>. RKO General would receive 217 mln dlrs
and Fidelilty Television, which challenged the license, would
get about 103 mln dlrs.
    The partners also said the Federal Communications
Commission established an expedited schedule for receiving
comments on their request for special temporary authorization
of proposed trust arrangements while the FCC considers a formal
application for transfer of the broadcast unit.
    Reed said he was pleased with the expedited schedule
because it provides time for the agency to act on the request
before the expiration of the tender offer.
    He said it was the aim of the partners to move as quickly
as possible to eliminate uncertainty surrounding the stations.
    Asked about criticism of the takeover attempt voiced by
some municipal officials in Akron, Ohio, where GenCorp is
headquartered, Reed said, "the plan of the partners offers long
term growth for Ohio."
    He noted that the aerospace business, slated for
divestiture under the partners' plan, is located in California.
"Our program is one that overall would provide the greatest
long term growth for all segments," he said.


.I 15160
.C
crude;nat-gas;
.W
UNOCAL <UCL> PLANS INCREASE IN CAPITAL SPENDING.
    LOS ANGELES, March 25 - Unocal Corp said it intends to
increase its spending for capital projects to 929 mln dlrs in
1987, eight pct more than the 862 mln spent in 1986.
    The company said in its annual report that it would
increase spending for exploration and development of petroleum
resources by about three pct to 614 mln dlrs from 1986's 595
mln dlrs, assuming oil prices hold around current levels.
    The planned spending for exploration and production in 1987
remains well below the 1.1 billion dlrs spent in 1985, Unocal
said.
    The company's proved developed and undeveloped reserves of
crude oil rose slightly in 1986, Unocal said. Net crude oil and
condensate reserves were 752 mln bbls as of Dec 31, 1986,
compared to 751 mln bbls at the end of 1985, Unocal said.
    The company said its net crude oil and condensate
production averaged 248,200 barrels per day in 1986 compared to
251,300 bpd in 1985.
    Unocal said its worldwide natural gas reserves were 6.07
billion cubic feet in 1986 compared to 1985's 6.19 billion. Net
natural gas output averaged 976 mln cubic feet per day in 1986,
down 10 pct from 1985's 1,084 mln, the company said.
    Unocal said its average sales prices for crude oil was
12.67 dlrs a barrel worldwide in 1986 compared to 23.81 dlrs in
1985, and its average sales price for natural gas was 2.03 dlrs
per thousand cubic feet in 1986 against 2.24 dlrs in 1985.
    Average production costs for crude oil and natural gas
declined nearly 30 pct to 3.41 dlrs per bbl of oil equivalent
in 1986 from 4.81 dlrs in 1985, Unocal said.
    In the annual report, the company called for imposition of
an oil import fee by the U.S. government to set a floor price
of about 25 dlrs a barrel for crude oil.
    "Simply stabilizing prices at about 18 dlrs per barrel    
will not materialy slow the drop in U.S. production or the rise
in imports," Chairman Fred Hartley said in the annual report.
    "Without decisive action in Washington, this nation will
once again become a hostage to OPEC's plans and policies,"
Hartley said.


.I 15161
.C
acq
.W
FED APPROVES CHEMICAL NEW YORK <CHL> MERGER.
    NEW YORK, March 25 - Chemical New York Corp and Texas
Bancshares Inc <TCB> said the Federal Reserve Board approved
their proposed 1.19 billion dlr merger.
    The companies also said the Securities and Exchange
Commission declared effective as of March 24 the registration
statement covering the securities Chemical will issue to Texas
Bancshares shareholders as part of the merger.
    The companies said they expect to complete the merger,
which will create a bank with 80 billion dlrs of assets, by the
end of the second quarter. The merger still requires
shareholder approval.
   


.I 15162
.C
earn
.W
VARITY<VAT> SEES IMPROVED RESULTS AFTER 1ST QTR.
    TORONTO, March 25 - Varity Corp, earlier reporting a full
year loss against a prior year profit, said improvement is
expected in the balance of fiscal 1987 as new products fill the
inventory pipeline, cutbacks in operating costs are realized
and its newly acquired Dayton Walther business is fully
integrated.
    However, operating results are likely to remain under
pressure in the first quarter ending April 30, it said.
    Varity earlier reported a loss for fiscal 1986 ended
January 31 of 23.3 mln U.S. dlrs, compared to a year-earlier
profit of 3.9 mln dlrs.
    Varity said continued deterioration in major markets, a
weakening U.S. dollar and unforeseen delays in launching major
new lines of tractors contributed to the full year loss.
    Industry demand for farm machinery continued to erode
during the latest fiscal year, with worldwide industry retail
sales of tractors sliding more than 10 pct below last year's
depressed levels, the company said.
    However, Varity increased its share of the global tractor
market by more than one pct to 18.2 pct, it said.
    The combined impact of costly sales incentives and foreign
exchange adjustments on margins was substantial, Varity said.


.I 15163
.C
acq
.W
CAMPBELL RESOURCES <CCH> UPS MESTON LAKE STAKE.
    TORONTO, March 25 - Campbell Resources Inc said it raised
its voting stake in <Meston Lake Resources Inc> to about 64 pct
from 52 pct through acquisition of another 870,000 Meston Lake
shares in its previously reported takeover bid.
    Campbell, in its bid that expired March 23, offered 80 cts
cash and 1.25 "legended" Campbell shares for each Meston share.
The legended shares are not tradeable for one year.
    It said the 3.4 mln Meston shares not tendered in the offer
were held by about 550 stockholders, including Quebec's La
Societe de developpement de la Baie James, with 1.3 mln shares.


.I 15165
.C
acq
.W
METROBANC <MTBC> SHAREHOLDERS APPROVE MERGER.
    GRAND RAPIDS, Mich., March 25 - Metrobanc, a federal
savings bank, said its shareholders approved the previously
announced merger with Comerica Inc <CMCA>, a bank holding
company.
    Metrobanc said the merger is still subject to regulatory
approval.


.I 15168
.C
earn
.W
PLAINS RESOURCES INC <PLNS> YEAR LOSS.
    OKLAHOMA CITY, March 25 - 
    Oper shr loss 31 cts vs profit three cts
    Oper net loss 887,886 vs profit 646,250
    Revs 9,724,418 vs 10.8 mln
    Note: Year-ago oper net excludes tax credit of 230,000
dlrs.


.I 15171
.C
crude;nat-gas;
.W
PENNZOIL (PZL) WILLING TO SETTLE TEXACO (TX) LAWSUIT.
    HOUSTON, March 25 - Pennzoil Co said it had not yet
received any "meaningful settlement offer" from Texaco Inc but
added that the company remained willing to consider proposals
to settle the 10.2 billion dlr jury judgment it won against
Texaco.
    In its newly-released annual report to shareholders,
Pennzoil said it expected the Texas state court judgment, which
was upheld by a state appeals court on February 12, to be
upheld if appealed again.
    "To date, Pennzoil has yet to receive any meaningful
settlement offer from Texaco, though it remains open to any
realistic effort to settle the matter," Pennzoil chairman Hugh
Liedtke said in the annual report.
    Pennzoil also said it had budgeted 212 mln dlrs for capital
spending in 1987, a drop from the 233 mln dlrs spent last year.
    Proved U.S. and foreign reserves of natural gas declined to
964 billion cubic feet last year, from 1.01 trillion cubic feet
in 1985, because of a virtual halt in its exploration program,
Pennzoil said. Its crude oil reserves dropped to 140 mln
barrels from 158 mln barrels in 1985.
     The Houston-based company said it sold an average of 339
mln cubic feet of domestic natural gas each day last year, a 17
pct drop from 1985. The average sales price for gas dropped by
60 cents per mcf to 2.16 dlrs per mcf, Pennzoil said.
    U.S. crude oil and gas liquids production last year fell to
an average of 33,290 barrels per day from 34,102 barrels per
day in 1985.
    The company's total revenues in 1986 declined to 482.3 mln
dlrs, from 762.5 mln dlrs the previous year. Operating income
in 1986 fell more than 80 pct, to 38.0 mln dlrs.
    Pennzoil said its goals for 1987 included development of
its Point Arguello oilfield off the California coast, to
maintain current production levels in its Bluebell-Altamont
Field in Utah and to drill for prospects in the Gulf of
Mexico's Mobile Bay area.
    "Production should begin late in the year from the Harvest
Platform in the Santa Maria Basin offshore California," the
company said. "Pennzoil's share of this production initially
should be five thousand barrels a day, increasing to a peak of
15 thousand barrels a day, net, by 1989."
    In its sulphur business, Pennzoil said production totaled
2.1 mln long tons last year, a decline of 18 pct from 1985. The
average sales price also declined, to 138.25 dlrs per long ton
from 141.05 dlrs in 1985.
    "The long term outlook for our sulphur operations remains
bright," the company said. "We expect sulphur's pricing
structure to strengthen during the current year, probably in
the third and fourth quarters."
            


.I 15173
.C
earn
.W
GV MEDICAL INC <GVMI> 4TH QTR LOSS.
    MINNEAPOLIS, Minn., March 25 -
    Shr loss 20 cts vs loss 26 cts
    Net loss 798,289 vs loss 777,667
    Rev 262,738 vs nil
    Avg shares 3,930,360 vs 2,959,029
    Year
    Shr loss 96 cts vs loss 1.25 dlrs
    Net loss 3,202,355 vs loss 3,060,407
    Rev 676,341 vs nil
    Avg shares 3,339,174 vs 2,445,423


.I 15175
.C
coffee
.W
IBC PRESIDENT NOT TO ATTEND ICO EXECUTIVE BOARD.
    RIO DE JANEIRO, MARCH 25 - Brazilian Coffee Institute (IBC)
president Jorio Dauster said he will not attend the ICO
executive board meeting and was surprised to hear that a report
of his absence had a slightly depressing effect on the New York
coffee market today.
    "I have too much work to accomplish here in Brazil at the
moment. Besides the presence of the IBC president at an ICO
executive board meeting is not a tradition," Dauster said.
    Dauster said except in rare cases, Brazil has always sent
its London-based representative to ICO board meetings.
Ambassador Lindenberg Sette will attend the meeting, he said.


.I 15177
.C
money-fx;interest;
.W
EXCHANGE RATE BILL CLEARS U.S. HOUSE PANEL.
    WASHINGTON, March 25 - The House Banking Committee adopted
legislation to direct the U.S. Treasury to begin negotiations
aimed at seeking regular adjustment of exchange rates by  
countries such as Taiwan and South Korea, whose currencies are
pegged to the value of the U.S. dollar.
    The measure was adopted as part of a wide-ranging trade
bill that will be considered by the full House in April before
it moves on to the Senate.
    The bill's many provisions also set as a priority for the
U.S. the negotiation of stable exchange rates and urge
government intervention as necessary to offset fluctuations.
    In addition, the Banking Committee bill would authorize
U.S. banks to use a variety of means to deal with the debt
problems of developing countries, such as lowering interest
rates on existing debt, renegotiating loans or debt
forgiveness. The bill would give a blanket waiver of any
federal banking regulations that bar such actions.
    The bill would direct Treasury Secretary James Baker to
discuss with debt-ridden developing countries the possibility
of the U.S. setting up a public debt management agency that
would purchase their debt at a discount and negotiate the
restructuring of the debt.
    The Banking bill authorizes U.S. participation in a
multilateral investment guarantee agency (MIGA) as requested by
the administration. Congress would approve an initial U.S.
subscription of 22 mln dlrs.
    And, it sets up a council on industrial competitiveness
composed of industry and administration members to explore ways
to make the U.S. more competitive in world markets.


.I 15178
.C
trade
.W
U.S. CHIPMAKERS URGE SANCTIONS AGAINST JAPAN.
    WASHINGTON, March 25 - The Semiconductor Industry
Association urged the U.S. government to impose trade sanctions
against Japan for violating the U.S.-Japan Semiconductor Trade
Agreement.
    In a letter to Treasury Secretary James Baker the group
said sanctions should be imposed against Japanese chipmakers as
of April 1 and continue until the U.S. is satisfied there is
full compliance with the agreement.
    The group said action by Japan to cut back on semiconductor
exports is not what is required.
    "America's interests require that agreements be honored and
that U.S. industries not bear the burden for the persistent
unwillingness or inability of the government of Japan to
deliver on its commitments," the trade group said.
    The White House Economic Policy Council is expected to
discuss possible sanctions against Japan at a meeting scheduled
for Thursday.
    The trade group said Japan has not lived up to the terms of
the agreement last year which was aimed at ending Japanese
dumping of semiconductors and at opening Japanese markets to
foreign-based manufacturers.


.I 15182
.C
acq
.W
CLABIR <CLG>, AMBRIT <ABI> CALL OFF MERGER.
    GREENWICH, Conn., March 25 - Clabir Corp and AmBrit Corp
said they called off their plans for Clabir to buy the 16 pct
voting interest in AmBrit that it does not already own.
    The companies said they agreed not to pursue the merger
because several actions recently taken by AmBrit would mean
substantial delays in completing the deal.
    They said they might revive merger plans at a later date or
seek other ways for Clabir to increase its holdings in AmBrit.


.I 15188
.C
grain;corn;
.W
COST OF PIK CERTIFICATES TO BE EYED BY CONGRESS.
    By Nelson Graves, Reuters
    WASHINGTON, March 25 - Congress, eager to find budget
savings, launches a review of the U.S. Agriculture Department's
generic commodity certificate program tomorrow, amid signs USDA
and the General Accounting Office, GAO, are at odds over how
much the program has cost U.S. taxpayers.
    The GAO concluded in a preliminary report last week that
payment-in-kind, or PIK, certificates cost between five and 20
pct more than cash outlays, administration officials who asked
not to be identified said.
    USDA officials, however, took issue with the report, saying
it did not take into account storage, handling and transport
savings that accrue to the government. The GAO then decided to
re-examine the costs, sources said.
    The issue is an important one, because congressional budget
committees are known to be considering limiting the use of
certificates as a means of cutting spending.
    Agriculture Under Secretary Daniel Amstutz and GAO Senior
Associate Director Brian Crowley are set to testify before the
Senate Agriculture Committee tomorrow.
    Amstutz is expected to tell the committee that there are
uncertainties in determining the cost of certificates compared
to cash outlays, and that savings to the Commodity Credit Corp,
CCC, almost equal costs, department sources said.
    USDA estimates that it costs the government about 75 cents
to store, handle and transport each bushel of commodity put in
government storage.
    It was unclear whether the GAO, Congress' investigative
arm, would stick by its original analysis that it costs the
government more to use certificates instead of cash in farm
price and income support programs, Reagan administration
sources said.
    The GAO is expected to point out that use of
payment-in-kind, PIK, certificates has helped relieve tight
storage by moving grain that otherwise might not have been
sold.
    The testimony by Amstutz and GAO Senior Associate Director
Brian Crowley comes as congressional budget committees
intensify their efforts to pinpoint ways to cut the federal
budget deficit -- including considering limits on the use of
PIK certificates.
    The CCC issues dollar-denominated PIK certificates, or
certs, as a partial substitute for direct cash outlays to
farmers or cash subsidies to exporters. Certs can be used to
repay nonrecourse loans or exchanged for CCC commodities or
cash.
    Between April and December 1986, CCC issued 3.8 billion
dlrs worth of certificates, according to USDA. Up to another
6.7 billion dlrs worth could be issued between January and
August 1987, according to USDA.
    Certs can cost the government more than cash primarily
because recipients can use the certificates to pay back
government loans at levels below the loan rate.
    Eliminating this practice, called "PIK and roll," would save
the government 1.4 billion dlrs between 1988-92, according to
the Congressional Budget Office, CBO. That estimate, according
to a CBO official, was based on an assumption that certificates
cost the government about 15 pct more than cash payments.
    The Senate and House Budget Committees are known to be
considering curbs on PIK-and-roll transactions among other
savings alternatives.
    The GAO last week reached the tentative conclusion that the
estimated three billion dlrs of certificates redeemed to date
have cost the federal government between 150 mln and 600 mln
dlrs, or between five and 20 pct, more than cash outlays, one
administration official said.
    However, the GAO has decided to reassess those estimates
based in part on USDA criticism, department officials said.
    The broad range of the cost estimate is partly attributable
to the different effect certificates can have on market prices
over the course of a crop year.
    USDA's Economic Research Service, for example, has found
that between June and August last year, the 215 mln bushels of
corn exchanged for certificates lowered the price of corn by
between 35 and 45 cents per bushel.
    Between September and November, however, certificates had
only a marginal impact on corn prices, according to the ERS
study, obtained by Reuters.


.I 15189
.C
acq
.W
DAILY TELEGRAPH IN DEAL WITH NEWS INTERNATIONAL.
    TORONTO, March 25 - <Hollinger Inc> said 58 pct-owned <The
Daily Telegraph PLC>, of London, agreed to form a joint venture
printing company in Manchester, England with <News
International PLC>. Financial terms were undisclosed.
    It said the deal involved News International's acquisition
of a 50 pct stake in the Telegraph's Trafford Park Printing Ltd
subsidiary. The joint company will continue to print northern
editions of the Telegraph and Sunday Telegraph, with spare
capacity used to print The Sun and News of the World.
    The arrangement will significantly cut Telegraph costs,
Hollinger said.


.I 15192
.C
earn
.W
FRIEDMAN INDUSTRIES INC <FRD> QUARTERLY DIV.
    HOUSTON, March 25 - 
    Qtly div seven cts vs seven cts prior
    Pay June one
    Record May four


.I 15195
.C
crude
.W
LATIN OIL PRODUCERS TO MEET IN CARACAS.
    CARACAS, March 25 - Five regional oil producing nations
will gather in Caracas tommorrow for a two-day meeting expected
to center on ways to combat proposals for a U.S. tax on
imported petroleum, the Venezuela's ministry of energy and
mines said.
    Oil ministers from Mexico, Trinidad and Tobago, Ecuador and
Venezuela will be on hand for the fifth meeting of the informal
group of Latin American and Caribbean Petroleum Exporters,
formed in 1983, it said. Colombia will also attend for the
first time, as an observer nation, the ministry said.
    Energy and Mines Minister Arturo Hernandez Grisanti said
the conference has no set agenda but one entire session Friday
will be devoted to proposals for a tax on imported oil.
    Two of the group's members, Venezuela and Mexico, are
second and third largest foreign suppliers of oil to the United
States, respectively, following Canada.
    Venezuela, concerned about the effect such a tax would have
on its exports, undertook a diplomatic push to coordinate
strategy against such measures. In February, Canadian Energy
Minister Marcel Masse was invited to Caracas for talks with
Hernandez on proposals for an oil import tax.


.I 15196
.C
interest
.W
AUSTRALIAN RESERVE BANK CUTS REDISCOUNT RATE.
    SYDNEY, Mar 26 - The Reserve Bank of Australia this morning
cut the rediscount rate from 17.30 pct to 17.00 pct.
    The rediscount is the rate at which the bank buys back
treasury notes.
    Market sources said the cut reflected the recent easing in
market interest rates. They also pointed to yesterday's
treasury note tender where the 400 mln dlrs of 13-week notes
went at an average yield of 15.473 pct, down from 15.870 last
week. The 100 mln dlrs of 26-week notes went at an average
15.414 from 15.790 last week.


.I 15198
.C
acq
.W
GENOVA <GNVA> SIGNS DEFINITIVE MERGER AGREEMENT.
    DAVISON, Mich., March 25 - Genova Inc said it signed a
definitive agreement for the previously announced merger with
<Genova Products Inc>.
    Under the agreement, Genova Products will pay 5-3/8 dlrs a
share for the 29 pct of Genova's outstanding common shares it
does not already own.
    The company said it plans to complete the transaction,
which requires shareholder approval, by the end of March.


.I 15199
.C
earn
.W
PENOBSCOT SHOE CO <PSO> 1ST QTR FEB 27 NET.
    OLD TOWN, Me., March 25 - 
    Shr 69 cts vs six cts
    Net 421,306 vs 44,132
    Revs 3,721,178 vs 3,125,935
    Note: Current qtr net includes a gain of 281,000 dlrs,
mostly from the sale of securities and property.


.I 15201
.C
coffee
.W
DAUSTER SAYS NO CHANGE IN BRAZIL'S COFFEE POLICY.
    RIO DE JANEIRO, MARCH 25 - Brazil will not announce any
changes to its coffee export policy, Brazilian Coffee Institute
(IBC) president Jorio Dauster said.
    He told Reuters Brazil was not planning to modify the
position it held before the recent International Coffee
Organisation meeting.
    Earlier this month, talks in London to set new ICO export
quotas failed.
    Commenting on the outcome of a coffee producers' meeting in
Managua last weekend, Dauster said that they discussed nothing
involving the market.
    "In the meeting we agreed to work on behalf of the union of
the producers in matters related to an international agreement,"
Dauster said.
    The Managua meeting was attended by representatives from
Brazil, Mexico, Guatemala, El Salvador, Honduras, Costa Rica,
Nicaragua and Panama, the latter represented at the meeting
merely as an observer.


.I 15202
.C
money-fx
.W
EXCHANGE RATE BILL CLEARS U.S. HOUSE PANEL.
    WASHINGTON, March 25 - The House Banking Committee adopted
legislation to direct the U.S. Treasury to begin negotiations
aimed at seeking regular adjustment of exchange rates by  
countries such as Taiwan and South Korea whose currencies are
pegged to the value of the U.S. dollar.
    The measure was adopted as part of a wide-ranging trade
bill that will be considered by the full House in April before
it moves onto the Senate.
    The bill's many provisions also set as a priority for the
U.S. the negotiation of stable exchange rates and urge
government intervention as necessary to offset fluctuations.


.I 15203
.C
earn
.W
CONSOLIDATE CAPITAL TRUST <CIOTS> 4TH QTR NET.
    EMERYVILLE, Calif., March 25 - 
    Shr 32 cts vs nil
    Net 1.2 mln vs 100,000
    Avg shrs 3,692,000 vs 3,148,000
    Year
    Shr 1.02 dlrs vs 54 cts
    Net 3.7 mln vs 800,000
    Avg shrs 3,607,000 vs 1,461,000
    Note: Net is after depreciation.
    Full name is Consolidated Captial Income Opportunity
Trust/2.


.I 15207
.C
money-fx
.W
******TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT TO FOSTER STABLE CURRENCIES.
Blah blah blah.

.I 15210
.C
money-fx
.W
BAKER SAYS HE STANDS BY PARIS CURRENCY AGREEMENT.
    WASHINGTON, March 25 - Treasury Secretary James Baker said
he stood by the Paris agreement among leading industrial
nations to foster exchange rate stability around current
levels.
    "I would refer you to the Paris agreement which was a
recognition the currencies were within ranges broadly
consistent with economic fundamentals," Baker told The Cable
News Network in an interview.
    "We were quite satisfied with the agreement in Paris
otherwise we would not have been a party too it," he said.
    Baker also noted the nations agreed in the accord to
"co-operate to foster greater exchange rate stability around
those levels."
    He refused to comment directly on the current yen/dollar
rate but said flatly that foreign exchange markets recently
tended "to draw unwarranted inferences from what I say."
    Baker was quoted on British Television over the weekend as
saying he has no target for the U.S. currency, a statement that
triggered this week's renewed decline of the dollar.
    "I think the Paris agreement represents evidence that
international economic policy co-ordination is alive and well,"
Baker said.
    The Treasury Secretary stressed however it was very
important for the main surplus countries to grow as fast as
they could consistent with low inflation to resolve trade
imbalances.
    He added that Federal Reserve Board chairman Paul Volcker
has also "been very outspoken" in suggesting main trading
partners grow as fast as they can.
    Baker noted that the J-curve, the delayed beneficial effect
of a weakening of a currency on that country's trade balance,
takes 12 to 18 months to work its way through to the trade
deficit and it is now 18 months since the Plaza agreement to
lower the dollar's value.
    He also said improvements in the trade deficit should come
from other sources besides the exchange rate, and pointed out
the administration's package to improve U.S. Competitiveness
was now before Congress.


.I 15218
.C
trade
.W
BAKER SEES 15 TO 20 BILLION DLR DROP IN TRADE GAP.
    WASHINGTON, March 25 - Treasury Secretary James Baker said
he expected the U.S. Trade deficit to fall by 15 billion to 20
billion dlrs in 1987.
    Commenting on the deficit during an interview on Cable News
Network, Baker said "I think you're going to see a 15 to 20
billion dlr reduction this year." The deficit was 170 billion
dlrs in 1986.
    Baker noted that the benefits of a weaker currency take 12
to 18 months to affect the trade balance, and said it is now 18
months since the Plaza agreement to lower the dollar's value.


.I 15219
.C
money-fx;yen;
.W
******Sumita says further yen rise would adversely affect Japanese economy.
Blah blah blah.

.I 15220
.C
money-fx
.W
******Sumita says major nations will continue to cooperate to stabilize currencies.
Blah blah blah.

.I 15221
.C
money-supply
.W
N.Z. MONEY SUPPLY RISES 2.4 PCT IN JANUARY.
    WELLINGTON, March 26 - New Zealand's broadly defined,
seasonally adjusted M-3 money supply grew an estimated 2.4 pct
in January against a 3.4 pct (revised from 3.6) rise in
December and a 0.7 pct rise in January 1986.
    It said unadjusted M-3 increased to an estimated 30.13
billion N.Z. Dlrs from 30.08 (revised from 30.06) billion in
December and 25.18 billion in January 1986.
    Year-on-year M-3 rose 19.66 pct in January from 17.80 pct
(revised from 17.77) in December and 20.10 pct in January 1986.
    Narrowly defined year-on-year M-1 growth was 21.94 pct in
January against 15.89 pct in December and 14.10 pct a year
earlier.
    M-1 grew to an estimated 4.72 billion dlrs against 5.03
billion in December and 3.87 billion in January 1986.
    Year-on-year private sector credit, PSC, grew 31.07 pct in
January against 30.64 pct (revised from 30.68) in December and
21.40 pct in January 1986. PSC grew to 22.69 billion dlrs from
22.24 billion in December and 17.31 billion in January 1986.


.I 15222
.C
money-fx;interest;yen;
.W
FURTHER YEN RISE WOULD HURT JAPAN ECONOMY, SUMITA.
    TOKYO, March 26 - Bank of Japan Governor Satoshi Sumita
said a further yen rise would have adverse effects on the
Japanese economy.
    He told Japanese business leaders the Bank of Japan will
continue to take adequate measures, including market
intervention, to stabilize exchange rates if necessary, in
close cooperation with other major industrialized nations. He
said the current instability of exchange rates will not last.
    Six major nations - Britain, Canada, France, Japan, the
U.S. And West Germany - agreed in Paris last month to act
together to hold currencies stable.
    Sumita said the Bank of Japan will continue to pursue
adequate and flexible monetary policies while watching economic
and financial developments in and outside Japan.
    He said the decision to cut the discount rate on February
20 was a hard choice for the Bank because monetary conditions
had already been sufficiently eased.
    To prevent a resurgence of inflation, the Bank will take a
very cautious stance regarding developments stemming from easy
credit conditions, he said.
    He said the latest discount rate cut to 2.5 pct should
stabilize exchange rates and expand domestic demand.
    Commenting on the dollar's fall below 150 yen, Sumita
reiterated he cannot find any specific reason for the
currency's weakness.
    The market undertook speculative dollar selling by reacting
to overseas comments by monetary authorities and trade tension,
he said.
    Sumita repeated that the Japanese economy may gradually
recover in the latter half of the 1987/88 fiscal year ending
April 1, 1988, provided exchange rates stabilize.


.I 15225
.C
trade
.W
EC LINKS AGRICULTURAL TRADE TALKS TO OTHER REFORM.
    SYDNEY, March 25 - The European Community (EC) considers
talks on agricultural trade reform to be inseperable from talks
on other trade reform in the present GATT round, Willy de
Clercq, external relations commissioner of the EC, said.
    He told reporters here the EC would not bow to pressure to
reach an early, seperate agreement on agricultural trade.
    He said the EC wanted to stick to the four-year schedule
agreed by members of the General Agreement on Tariffs and Trade
(GATT) in Punta del Este, Uruguay, last year. That included
agricultural trade liberalisation for the first time in the
lengthy program to re-negotiate the GATT.
    Other trade issues being discussed in the current GATT
round include reform of trade in merchandise and services.
    De Clercq is on his way to China after attending a two-day
conference for 22 GATT trade ministers held in New Zealand.
    Several of those ministers criticised the EC for what they
saw as restrictive agricultural trade practices and called for
urgent reforms. U.S. Trade representative, Clayton Yeutter,
also said it was important agreement on agricultural trade
reform was reached as early as possible.
    But de Clercq said the GATT program had been reached after
long and hard negotiations, and the EC did not want changes.
    "We just want to stick to the agreement which was reached,
and that was very clear -- that the new round would be one
undertaking. It is a global negotiation with no two tracks, no
fast track, no slow track. It has just one track, the track -
and that's all," de Clercq said.
    "If you start selecting priorities, your priority is not my
priority. We say that agriculture is urgent, but it's not the
only urgent thing," he said.
    He said the Punte del Este agreement had taken eight months
to prepare and eight days of negotiations.


.I 15226
.C
grain;rice;
.W
VIETNAM'S ARMY ORDERED TO GROW MORE FOOD.
    BANGKOK, March 26 - Vietnam has ordered its army to grow
more food to ease shortages and meet economic recovery goals
set for 1990.
    The army newspaper Quan Doi Nhan Dan, monitored here, said
soldiers must work harder to care for rice, vegetables and
other crops endangered by the present unusually hot weather.
    The paper said the 1.6-mln strong regular army contributed
less than one pct to the nation's 18.2 mln tonne food output.
    North Vietnam has set a 1990 food target of 23 to 24 mln
tonnes.


.I 15227
.C
earn
.W
LINDE TURNOVER UP IN FIRST TWO MONTHS OF 1987.
    WIESBADEN, West Germany, March 26 - Engineering group Linde
AG's <LING.F> world group turnover rose to 518.6 mln marks in
the first two months of 1987, 5.2 pct more than in the same
1986 period, management board chairman Hans Meinhardt said.
    But world group incoming orders fell 2.2 pct to 587.3 mln
marks, Meinhardt told the annual news conference. Excluding
exchange rate movements, world group turnover rose 8.9 pct and
incoming orders increased 1.0 pct.
    Linde expects satisfactory results and increased sales this
year but Meinhardt gave no detailed forecast. Domestic group
1986 net profit rose to 105.79 mln marks from 80.71 mln.
    Meinhardt said domestic group turnover rose 6.7 pct to
394.1 mln marks in the first two 1987 months against the same
period last year but incoming orders fell 5.2 pct to 456.6 mln.
    Linde will ask shareholders at the annual meeting on May 13
to raise authorised share capital by a maximum 30 mln marks
nominal for the issue of share warrant bonds with a maximum
issue volume of 200 mln marks. Linde's authorised share capital
currently stands at a nominal 49.6 mln marks.
    Meinhardt said the authorisation would give the company the
necessary flexibility in case Linde needed additional funds for
acquisitions. He declined to give further details.
    While world group turnover rose 7.2 pct to 3.88 billion
marks in 1986, incoming orders were barely changed at 3.91
billion marks. Meinhardt said without the sharp appreciation of
the mark against major trading partner currencies, incoming
orders would have been four pct above the prior year's level.
    World group turnover in heavy plant construction rose 7.4
pct to 777 mln marks, but incoming orders dropped 5.7 pct to
739 mln marks in the wake of the dollar and oil price plunge.
    World sales for technical gases rose 5.1 pct to 1.05
billion marks and incoming orders gained 5.2 pct to 1.05
billion marks.
    Meinhardt said Linde strengthened its market position in
the refrigeration sector, with particularly strong turnover and
order gains in Austria, Italy and Norway. World group sales in
the sector fell 2.5 pct to 493 mln marks, but incoming orders
rose 2.5 pct to 513 mln marks.
    The fork lift truck and hydraulic sector saw world group
sales rising 12.4 pct to 1.52 billion marks and incoming orders
gaining 8.0 pct to 1.57 billion marks.
    Domestic group turnover rose 8.2 pct to 2.93 billion marks
and incoming orders increased 1.9 pct to 2.92 billion marks.
The company was producing at full capacity in 1986.


.I 15228
.C
earn
.W
LINDE AG <LING.F> 1986 YEAR.
    WIESBADEN, West Germany, March 26 -
    Domestic group net profit 105.79 mln marks vs 80.71 mln
    Turnover 2.93 billion marks vs 2.71 billion
    Incoming orders 2.92 billion marks vs 2.86 billion
    Order book at end December 2.28 billion vs 2.37 billion
    Tax payments 104.98 mln marks vs 88.67 mln
    Depreciation of fixed assets 107.25 mln marks vs 150.75 mln
    New investment in fixed assets 148.88 mln vs 148.22 mln
    Dividend already announced 12 marks vs 11
    DVFA earnings per share 32.22 marks vs 27.54 marks
    Shareholders annual meeting May 13, dividend date May 14
    World group turnover 3.88 billion marks vs 3.62 billion
    Incoming orders 3.91 billion marks vs 3.91 billion
    New investment in fixed assets 247 mln marks vs 252 mln
    No world group profit figures given
    Parent company net profits 95.04 mln marks vs 74.91 mln
    Turnover 2.28 billion marks vs 2.14 billion


.I 15233
.C
trade
.W
TRADE SURPLUS CUT WOULD BENEFIT JAPAN - SUMITA.
    TOKYO, March 26 - Bank of Japan Governor Satoshi Sumita
said it is in Japan's national interest to make greater efforts
to reduce its trade surplus.
    He told business executives the most important issues for
the world economy are the correction of international trade
imbalances and a solution to the world debt problem.
    To this end, Japan and the U.S. Must make medium- and
long-term efforts to alter economic structures which have
expanded the trade gap between the two nations. World economic
growth and therefore an expansion of debtor countries' export
markets are needed to solve the debt issue, he added.


.I 15239
.C
ship;crude;
.W
GULF ESCORTS STILL UNDER DISCUSSION - WEINBERGER.
    FORT WORTH, Texas, March 26 - No action has been taken yet
on the Reagan Adminstration's offer to escort Kuwaiti oil
tankers through the Gulf, but the issue is being discussed,
U.S. Secretary of Defence Caspar Weinberger said.
    The offer was made to Kuwait in light of Iran's deployment
of Chinese-built missiles to cover the entrance to the Gulf.
    Weinberger told reporters prior to a speech at Texas
Christian University that he did not think Iran and the United
States were moving towards a potential conflict, adding that
the Straits of Hormuz at the mouth of the Gulf were still "free
water."


.I 15241
.C
money-fx
.W
MIYAZAWA SAYS MAJOR NATIONS ACTING ON PARIS ACCORD.
    TOKYO, March 26 - Finance Minister Kiichi Miyazawa said
major nations are taking action to stabilise exchange rates in
line with their agreement in Paris last month, government
sources said.
    Miyazawa told an Upper House session the six nations --
Britain, Canada, France, Japan, the U.S. And West Germany --
are abiding by the Paris accord. The six agreed to cooperate to
stabilise exchange rates at around current levels.
    Miyazawa said he wishes to attend a meeting of seven major
nations (G-7) expected just before the IMF/World Bank Interim
Committee meeting in Washington starting on April 9.
    The sources quoted Miyazawa as saying Japan is trying to
prevent a further rise of the yen. Japan is taking the matter
seriously, he added.
    Asked if the six nations had agreed to stabilise the dollar
at about 153 yen, the rate prevailing at the time of the Paris
talks, Miyazawa declined to give specific figures and said any
mention of specific rates would create an "unexpected situation."


.I 15244
.C
earn
.W
******Hoechst AG 1986 world group pretax profit 3.21 billion marks vs 3.16 billion.
Blah blah blah.

.I 15248
.C
money-fx
.W
******BANK OF FRANCE LAUNCHES MONEY MARKET INTERVENTION TENDER - OFFICIAL.
Blah blah blah.

.I 15249
.C
earn
.W
HOECHST AG <HFAG.F> YEAR 1986.
    FRANKFURT, March 26 - Year ended December 31.
    World group pretax profit 3.21 billion marks vs 3.16
billion.
    Turnover 38.01 billion marks vs 42.72 billion.
    World group turnover comprised domestic sales 10.83 billion
vs 10.80 billion, foreign sales 27.18 billion vs 31.92 billion.
    Parent pretax profit 1.82 billion marks vs 1.62 billion.
    Turnover 14.09 billion vs 15.35 billion.
    Parent turnover comprised domestic sales 6.47 billion vs
6.84 billion, foreign sales 7.62 billion vs 8.51 billion.
    Parent investment in fixed assets 960 mln marks vs 831 mln.
    Depreciation of fixed assets 935 mln marks vs 847 mln.
    Investment in new participations 2.53 billion marks vs 294
mln.


.I 15250
.C
bop;trade;
.W
GERMAN TRADE, CURRENT ACCOUNT DATA DUE TODAY.
    WIESBADEN, March 26 - The Federal Statistics Office will
today publish trade and current account figures for February, a
spokeswoman said in reply to queries.
    In January the current account surplus provisionally
narrowed to 4.9 billion marks from 8.5 billion in December. The
provisional January trade surplus narrowed to 7.2 billion marks
from a record 11.6 billion marks the month before.
    In February 1986 the current account had shown a 6.85
billion mark surplus and the trade account a 6.84 billion
surplus.


.I 15251
.C
money-fx;interest;
.W
BANK OF FRANCE LAUNCHES MONEY MARKET TENDER.
    PARIS, March 26 - The Bank of France said it set a money
market intervention tender today to inject funds to the market
against first category paper.
    Money market sources said the surprise announcement might
herald a quarter percentage point cut in the central bank
intervention rate from the 7-3/4 pct level set March 10, but
they added such a cut was relatively unlikely.
    The intervention rate was cut from eight pct on March 10
after being raised from 7-1/4 pct on January 2 to head off
speculative pressure against the franc.
    Dealers said market fundamentals could justify a further
easing, but a combination of technical factors and renewed
currency uncertainties surrounding the dollar had put
short-term upside pressure on interest rates in recent
sessions.
    Call money rose yesterday to 7-7/8 eight pct from 7-3/4 7/8
pct. Today it was first indicated at 8-1/8 1/4 before easing on
news of the tender to 7-13/16 7/8 pct.
    Technical factors making for a slight shortage of liquidity
in the market included the settlement yesterday of the latest
monthly treasury tap stock tender, on March 5, market sources
said.


.I 15252
.C
acq
.W
******BP says it will tender for remaining 45 pct of Standard Oil at 70 dlrs a share cash.
Blah blah blah.

.I 15254
.C
acq
.W
BP TO OFFER 7.4 BILLION DLRS FOR STANDARD SHARES.
    LONDON, March 26 - British Petroleum Co Plc <BP.L> said it
intended to make a tender offer for the 45 pct of Standard Oil
Co <SRD.N> it does not already own at 70 dlrs a share cash, for
a total of 7.4 billion if the offer is fully accepted.
    The offer would be made through its <BP North America Inc>
unit and was intended to commence not later than April 1. The
offer would not be conditional on any minimum number of shares
being tendered.
    BP said in a statement the 70 dlr a share price was based
on its own valuation as well as those of its financial
advisers. It took into account reviews of both public and
non-public information.
    Standard closed in New York last night at 64-7/8 dlrs, down
1-3/4 dlrs.
    BP shares dropped on the announcement to 877p from 888p at
last night's close.
    About a third of the cash payable would be met from BP's
own resources.
    The remainder would come from new borrowings, partly from
banks under a four-year committed revolving credit facility and
partly from a a new U.S. Dlr commercial paper programme. The
company said it was in the course of arranging these
facilities.
    BP Chairman Sir Peter Walters said that the group's
investment in Standard was its largest single asset. Full
ownership would enable investment and operating decisions to be
made without the limitations of a minority interest.
    BP also believed the acquisition represented the optimum
use of its financial resources. It was confident oil prices
were likely to remain within a range sufficient to justify the
investment.
    Walters added that it also felt that, due to management
changes in 1986, Standard could now operate successfully even
in a lower oil price environment.
    Standard's net assets at end-1986 were 7.02 billion dlrs
and in the year it reported a loss of 1.08 billion dlrs before
tax and before an extraordinary item of 608 mln dlrs.
    Analysts said that the move by BP had come as a surprise.
One noted that it was not immediately clear why the group
should spend so much money buying a company it already
controlled.
    BP could also have bought up the remainder of Standard
shares considerably cheaper had it moved six months ago.
    It was also unclear what effect the tender would have on
the U.K. Government's recent announcement that it intended to
dispose of its remaining 31.7 pct stake in BP sometime in the
1987/88 financial year, analysts said.
    Analyst Paul Spedding of brokers Kleinwort Grieveson noted
that any effect on the government sale of its stake in BP would
depend on the reaction of the markets.
    The deal would probably push BP's gearing up to around 59
pct from 20 pct currently, he said.
    However, with the likelihood that oil prices would not
repeat last year's rapid drop the prospects for Standard
returning to profitability this year -- and BP benefitting from
its cash flow -- were good.
    Standard was a high cost oil producer, the analysts noted.
    Spedding noted that it needed about 12 dlrs a barrel to
make money, and at about 15 dlrs a barrel revenue from
production and its downstream activities would push it
comfortably into surplus.
    BP initially took a stake in Standard following the
discovery of oil in Alaska's Prudhoe bay in 1969. BP had
inadequate distribution facilities in the U.S. While Standard,
which was strong on marketing and refining, was short on crude
oil.
    The analysts said that BP had promoted a major management
reorganisation of Standard in the past year.
    The probability that much of the shake-up at Standard was
now complete was one possible factor behind the timing of the
tender offer, Spedding said.
    BP's willingness to take hard decisions such as major
balance sheet write offs and the sale of assets had been well
received in the markets.
    The lower costs that should now be possible -- especially
after the rationalisation of the loss making minerals division
-- should allow the benefits of an oil price recovery to come
straight through to 1987 profits without being cut back by
other sectors.


.I 15255
.C
earn
.W
HOECHST RAISES PROFITS ON LOWER SALES.
    FRANKFURT, March 26 - Hoechst AG <HFAG.F> said in a
statement it increased its pretax profits in 1986 despite a
fall in turnover due to lower foreign sales.
    The lower sales were due to the fall in the dollar and
other currencies against the mark. Other factors were pressure
on selling prices because of a sharp fall in the prices of
crude oil and petrochemical raw materials and the sale of
polystyrene business in the U.S. And Netherlands.
    World group pretax profit rose to 3.21 billion marks in
1986 from 3.16 billion in 1985, with sales falling to 38.01
billion from 42.72 billion.
    Within group turnover, foreign sales fell to 27.18 billion
marks in 1986 from 31.92 billion in 1985, a drop of 14.9 pct.
    The statement made no mention of net profit figures.
Hoechst will announce its dividend proposal on April 23.
    In the first quarter of this year sales were hit by the
cold weather at the start of the year. If the dollar continues
at present low levels, 1987 sales will again be below the
previous year, although in volume terms they are unchanged from
1986, Hoechst said.
    Sales of paints and dyes, fibres, sheeting and information
technology all rose in 1986 but plant construction sales fell.
    Hoechst attributed its good results to the performance of
the parent company, other units in West Germany, and to
<American Hoechst Corp>.
    Improved earnings in the U.S. Largely reflected the
restructuring of styrene and polystyrene activities.
    Roussel Uclaf <RUCF.PA> and most domestic non-consolidated
partners did not perform as well as in 1985.
    Hoechst attributed the 12 pct rise in parent company pretax
profits to 1.82 billion marks above all to a rise in earnings
from interest and holdings in other companies, and a fall in
extraordinary costs.
    The fall in raw material prices was not enough to
compensate for the decline in turnover due to lower prices and
currencies, Hoechst said.
    The bulk of the 2.53 billion marks investment in new
projects, up from 294 mln marks in 1985, went on the capital
increase of Hoechst Capital Corp in connection with the
acquisition of <Celanese Corp>.
    Celanese was merged with American Hoechst in February to
form <Hoechst Celanese Corp>.


.I 15256
.C
interest
.W
******Danish overnight money market rate cut to 10 pct from 10.5 - central bank.
Blah blah blah.

.I 15257
.C
earn
.W
BHP NET SEEN AROUND 600 MLN DLRS FOR NINE MONTHS.
    SYDNEY, March 26 - Australia's largest company, The Broken
Hill Pty Co Ltd <BRKN.S> (BHP), is expected to report a net
profit of around 600 mln to 620 mln dlrs tomorrow for the first
nine months ended February 28, share analysts polled by Reuters
said.
    This would be well below the 813.0 mln dlrs earned in the
first three quarters of 1985/86. In the full year ended May 31
1986 the group earned a record 988.2 mln dlrs.
    The analysts estimated that the group would report a third
quarter net in the region of 200 mln to 220 mln dlrs, against
238.6 mln a year earlier and 220.3 mln in the second quarter.
    BHP's earnings in the first half ended November 30 amounted
to 397.0 mln dlrs, sharply down from 589.3 mln a year earlier.
    The analysts predicted that BHP will report an upturn in
petroleum earnings compared with the first quarter, reflecting
some improvement in crude oil prices from the Bass Strait
fields, but these gains would be offset by lower mineral and
steel earnings.
    They said the mineral group has been hit by lower coal
prices and shipments to Japan while the steel division has been
affected by industrial and production problems.
    The analysts noted that the third quarter is normally BHP's
lowest-earning period owing to a number of seasonal factors,
and they predicted a sharp rise in fourth quarter net to around
300 mln dlrs.
    One key factor in the fourth quarter is expected to be a
tax break of some 70 mln dlrs for the investment allowance on
capital expenditure in the steel division, they said.
    They said they saw BHP's full year earnings at around 900
mln to 920 mln dlrs. They added that such a decline from
1985/86 would be no surprise, noting BHP has said that it would
be difficult to equal its record 1985/86 net profit.


.I 15258
.C
acq
.W
****** BP units seek five billion dlr revolving credit to support Standard Oil tender.
Blah blah blah.

.I 15259
.C
alum
.W
INDIAN PLANT SIGNS FIRST ALUMINA EXPORT CONTRACT.
    NEW DELHI, March 25 - An unnamed Norwegian firm agreed to
buy 100,000 tonnes of alumina a year from a refinery in eastern
Orissa state due to start operations in the next 12 months, a
Commerce Ministry official told Reuters.
    He said the state-owned National Aluminium Co, which owns
the plant, and the state-owned Mineral and Metals Trading Corp
signed its first long-term export agreement with the company,
but gave no further details.
    Of the plant's 800,000 tonnes annual capacity, 425,000 will
be smelted into 218,000 tonnes of aluminium and the remaining
375,000 will be exported, the official said.


.I 15262
.C
earn
.W
LUCAS INDUSTRIES PLC <LUCS.L> HALFYEAR ENDED JAN 31.
    LONDON, March 26 -
    Shr 22.9p vs 26.9p.
    Interim div 2.6p vs same.
    Pre-tax profit 40.0 mln stg vs 38.0 mln.
    Net profit before minorities 29.6 mln vs 30.9 mln.
    Turnover 825.0 mln vs 791.6 mln.
    Trading profit 52.8 mln stg vs 52.5 mln.
    Related companies profit 3.1 mln vs 1.4 mln.
    Interest payable 12.3 mln vs 14.6 mln.
    Reorganisation and redundancy costs 3.6 mln vs 1.3 mln.
    Tax 10.4 mln vs 7.1 mln.
    Minorities 1.5 mln vs 2.4 mln.
    Extraordinary charges 1.3 mln vs 34.2 mln.


.I 15263
.C
acq
.W
BP UNITS SEEK FIVE BILLION DLR REVOLVING CREDIT.
    LONDON, March 26 - BP International and BP North America
are seeking a five billion dlr, four year syndicated credit
facility in support of British Petroleum Co Plc's tender offer
for the 45 pct of Standard Oil Co it does not already own,
Morgan Guaranty Trust Co of New York said as arranger.
    The facility, to be guaranteed by British Petroleum Co Plc
<BP.L> is probably the largest credit facility ever arranged in
Europe, bond analysts said. Full terms will be announced either
later today or tomorrow morning. BP said earlier it planned a
tender offer for the 45 pct of Standard it does not already own
for 70 dlrs a share cash.
    The financing being arranged by Morgan Guaranty will take
the form of a fully committed revolving credit. As announced
earlier, BP also is arranging a U.S. Commercial paper program
in connection with the tender and part of the revolver will be
used to support that program.
    The exact size of the U.S. Program has not been decided and
the dealers have not yet been chosen.
    The credit facility will also allow the borrower to issue
cash advances with maturities of one, three or six months
through a tender panel, which will be comprised of banks
committed to the facility.
    Despite the unprecedented size of this euromarket facility,
Morgan Guaranty said that it was being syndicated only among
BP's relationship banks.
    As a result, banks were being offered lead manager status
at 200 mln dlrs, co-lead management at 125 mln and manager at
75 mln.
    Although pricing on many credit facilities has become
extremely fine in recent years because of the keen competition
to win mandates, Morgan Guaranty said banks would be
compensated fairly since this is a special purpose facility
which must be completed quickly, with signing expected in about
10 days.


.I 15265
.C
earn
.W
CLUB MEDITERRANEE <CMI.PA> - YEAR ENDED OCTOBER 31.
    PARIS, March 26 -
    Parent company 1986 net profit 202.55 mln francs vs 171.31
mln
    Dividend 13.02 francs vs same, including 4.34 francs tax
credit.
    (Note -  company earlier reported consolidated net profit
315.9 mln francs vs 302.08 mln and consolidated attributable
profit of 293.3 mln vs 266.6 mln.)


.I 15266
.C
money-fx
.W
U.K. MONEY MARKET LIQUIDITY POSITION EXPECTED FLAT.
    LONDON, March 26 - The Bank of England said it has forecast
a flat position in the money market today.
    Among the main factors, maturing assistance and take-up of
treasury bills will drain 545 mln stg and a rise in note
circulation 35 mln stg but the outflow will be offset by 490
mln stg exchequer transactions and bankers balances above
target 70 mln.


.I 15267
.C
sugar
.W
EC SUGAR TENDER SEEN AS FURTHER CONCESSION.
    BRUSSELS, March 26 - The rebates granted at yesterday's EC
sugar tender represent a further concession to producers'
complaints that they are losing money on exports outside the
bloc, trade sources said.
    They said the maximum rebate of 45.678 European currency
Units (Ecus) per 100 kilos was 0.87 Ecus below what producers
claim is needed to obtain the equivalent price to that offered
for sales into intervention.
    The rebate at last week's tender was 1.3 Ecus short of the
level producers thought necessary and that of the previous week
was 2.5 Ecus below this level.
    But the sources said producers who have offered a total of
854,000 tonnes of sugar into intervention in an apparent
attempt to persuade the Commission to set higher maximum
rebates have given no formal indication to the Commission that
they intend to withdraw these offers.
    The French and German operators involved would be able to
withdraw the offers up to five weeks after April 1 when the
sugar will officially enter intervention stores.
    The five-week period is the normal delay between sugar
going into intervention and payment being made for it.
    EC officials have said that if the Commission has to buy
the sugar, it is determined immediately to resell it, a move
which could drive down market prices further.


.I 15268
.C
bop
.W
****** German Feb current account surplus 6.6 billion marks (Jan surplus 4.8 billion) - official.
Blah blah blah.

.I 15269
.C
trade
.W
****** German February trade surplus 10.4 billion marks (Jan surplus 7.2 billion) - official.
Blah blah blah.

.I 15271
.C
trade;jobs;
.W
KEATING REVISES DOWN AUSTRALIAN GROWTH FORECAST.
    CANBERRA, March 26 - Treasurer Paul Keating forecast
economic growth at slightly under two pct in the financial year
ending June this year, down from the 2.25 pct forecast
contained in the 1986/87 budget delivered last August.
    Australia's terms of trade also fell, by 18 pct, over the
past two years, he told Parliament. Terms of trade are the
difference between import and export price indexes.
    Despite the figures, the budget forecast of about 1.75 pct
annual growth in employment would be met, Keating said.
    Unemployment is currently at 8.2 pct of the workforce.
    "This government is dragging Australia through a trading
holocaust the kind of which we have not seen since the Second
World War," Keating said.
    "We are not pushing this place into a recession. We are not
only holding our gains on unemployment, we are bringing
unemployment down," he said, adding that the government had help
the country avoid recession.


.I 15272
.C
money-supply
.W
TAIWAN'S SAVINGS AT RECORD HIGH.
    TAIPEI, March 26 - Taiwan has over one trillion Taiwan dlrs
in savings, official statistics show.
    Figures released yesterday show all forms of savings by
individuals and public and private firms, including bank
deposits, certificates of deposits and bond's, are running at
about 37 pct of gross national product (GNP).
    GNP rose by 14.35 pct in 1986 to 2.74 trillion dlrs.
    Taiwan's strict foreign exchange controls and lack of
incentives to invest abroad mean its huge export earnings are
mainly deposited in bank savings accounts, earning below four
pct interest each year.


.I 15273
.C
money-fx
.W
SHORT-DATED SAUDI RIYAL RATES FIRM IN QUIET MARKET.
    BAHRAIN, March 26 - Short-dated Saudi riyal interest rates
firmed but other rates were steady in quiet trading, dealers
said.
    "Day-to-day money is a bit tighter," one trader said.
    Overnight rose two points to six pct, while most quotes for
tomorrow/next and spot/next were 1/2 point higher at around
six, 5-1/2 pct.
    The periods were essentially steady at 5-7/8, 5/8 pct for
one month, 6-1/2, 3/8 pct for three, and 6-7/8, 11/16 for six
months.
    The spot riyal stood at 3.7500/05 to the dollar after
3.7506/09 yesterday.


.I 15274
.C
livestock;carcass;
.W
JAPAN BEEF PRICE SUPPORT CUT WILL NOT RAISE DEMAND.
    By Fumiko Fujisaki, Reuters
    TOKYO, March 26 - Japan's plan to cut beef intervention
prices for the fiscal year starting April 1 will not boost
demand because of strict supply controls and a complex
distribution system, Japanese and U.S. Industry sources said.
    "Government beef policy protects farmers rather than meeting
consumers' demands and the cutback ... Is too marginal," a
Housewives Association of Japan official said.
    Despite mounting U.S. Pressure on Japan to open farm
markets, beef is strictly controlled by the government, which
maintains a price stabilisation zone to protect farmers.
    Under the plan, expected to be announced this month, the
standard or bottom price of castrated wagyu -- known as marbled
beef -- will be set at 1,370 yen per kilo for 1987/88 against
1,400 now, and the ceiling at 1,780 yen against 1,820.
    The standard price of other beef, mainly produced from
dairy steers, is set at 1,020 yen against 1,090 and the ceiling
at 1,325 against 1,420.
    Ministry officials said the semi-government Livestock
Industry Promotion Corp (LIPC) conducts buffer stock operations
to help keep wholesale beef prices within the intervention
price zone.
    The LIPC is allowed to import most beef, with the amount
set by the government under a quota system. When wholesale
prices go above the ceiling, the LIPC releases its beef stocks,
both domestic and imported, and buys locally produced beef when
prices are below.
    But the LIPC has often been criticised for releasing beef
stocks when the prices are higher than the ceiling.
    Phillip Seng, Asian Director of the U.S. Meat Export
Federation, told Reuters the two pct cut in prices is a step
toward closing the gap with European Community prices, about
half those in Japan.
    But Seng said the cut will not benefit consumers or U.S.
Meat exporters because of Japan's rigid and complicated
distribution system and strict supply control by the LIPC.
    The Housewives Association official said retail beef prices
are high mainly because of distribution problems and high
production costs, as well as poor operations by the LIPC.
    American meat packers see Japan as a promising market. F.C.
Beatty, of U.S. Packer John Morrell and Co, told the Japan
Times beef cuts, which sell for 1.20 to 3.00 dlrs a pound in
the U.S., Are sold at 15 to 30 dlrs in Japan.
    But Seng said the cut will not benefit consumers or U.S.
Meat exporters because of Japan's rigid and complicated
distribution system and strict supply control by the LIPC.
    The Housewives Association official said retail beef prices
are high mainly because of distribution problems and high
production costs, as well as poor operations by the LIPC.
    American meat packers see Japan as a promising market. F.C.
Beatty, of U.S. Packer John Morrell and Co, told the Japan
Times beef cuts, which sell for 1.20 to 3.00 dlrs a pound in
the U.S., Are sold at 15 to 30 dlrs in Japan.
    But industry sources said it is unclear how much demand
will pick up if retail beef prices drop following any sharp
reduction in intervention prices.
    U.S. Agriculture Secretary Richard Lyng said this week he
will ask Japan to remove all beef import restrictions when he
visits here next month.
    In 1984, Japan decided to increase its beef import quota by
9,000 tonnes a year until March 31, 1988.
    In 1987/88, the quota will rise to 177,000 tonnes from
168,000 in 1986/87, ministry officials said, adding Japan wants
to keep self-sufficiency in beef at around 70 pct.


.I 15275
.C
acq
.W
FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY.
    TOKYO, March 26 - One of two rival firms seeking to enter
Japan's international telecommunications market said it will
offer a stake in the company to 10 foreign firms.
    President of <International Telecom Japan Inc> (ITJ), Nobuo
Ito, decline to specify what share the firms would take, but
told Reuters they would not participate in its management.
    ITJ and <International Digital Communications Planning Inc>
(IDC), in which both Cable and Wireless Plc <CAWL.L> and
Pacific Telesis Group <PAC.N> own 20 pct stakes, are set to
merge into a new entity to compete against <Kokusai Denshin
Denwa Co Ltd> (KDD).
    The Ministry of Posts and Telecommunications has urged the
two rival firms to merge so KDD would have only a single
competitor. The ministry has also rejected foreign management.
    Japan's law limits foreign ownership of any new
international telecommunications entrant to 33 pct, so C and
W's and Pacific's stakes could be three pct in the merged firm,
sources said. Those seeking to join are General Electric Co
<GE.N>, Ford Motor Co <F.N>, <Citibank NA>, BankAmerica Corp
<BAC.NYSE>, <Shearson Lehman Bros Inc>, <Saloman Brothers>,
<Asia Boeing Computer Service>, Unisys Corp <UIS.N>, <Societe
Generale> and Deutsche Bank AG <DBKG.FRA>.
    The merger plan has been criticised for excluding foreign
firms from a meaningful position in the market.
    The U.K.'s Prime Minister Margaret Thatcher, U.S. Secretary
of State George Shultz, U.S. Commerce Secretary Malcolm
Baldrige and U.S. Trade Representative Clayton Yeutter have all
expressed such opposition.
    Japanese Prime Minister Yasuhiro Nakasone will draft a
reply to the criticism following further discussion, a Posts
and Ministry official said.


.I 15276
.C
oilseed;veg-oil;meal-feed;
.W
U.K. OILMEAL/VEG OIL PRODUCTION ROSE IN 1986.
    LONDON, March 26 -  The U.K. Produced 820,400 tonnes of
oilcake and meal and 431,000 tonnes of crude vegetable oil in
calendar 1986, Ministry of Agriculture figures show.
    They compare with 785,800 tonnes of oilcake and meal and
407,400 tonnes of crude vegetable oil produced in 1985.
    Total oilseeds crushed rose to 1.27 mln tonnes from 1.21
mln in 1985.


.I 15280
.C
earn
.W
SIEMENS SEES SALES NEAR 52 BILLION MARKS THIS YEAR.
    MUNICH, March 26 - World group turnover of Siemens AG
<SIEG.F> should rise to 51 or 52 billion marks in the current
year to September 31 after a 19 pct upturn in the first five
months, management board chairman Karlheinz Kaske said.
    Siemens reported world group turnover in 1985/86 of 47.02
billion marks.
    Kaske told the annual shareholders meeting turnover rose to
21.2 billion marks in the first five months of 1986/87, about
19 pct above the same year-ago period. The rise was mainly due
to payment in January for a West German nuclear power station
which led to a jump in domestic sales of 36 pct.
    In the first five 1986/87 months, turnover abroad showed a
three pct increase, Kaske said, without giving figures.
    In the same period incoming orders rose five pct to 21.8
billion marks against the same 1985/86 period.
    For the year as a whole incoming orders should rise between
one and two billion marks to around 51 or 52 billion.
    Apart from payments for the nuclear power station, the
communications and telecommunications sectors in particular
should contribute to growth this year, Kaske said.
    But it was not possible to make a profit forecast for
1986/87 because of uncertainty about the direction of the
dollar, Kaske said.
    Siemens already reported that first quarter 1986/87 group
net profit fell marginally to 296 mln marks from 298 mln in the
same period in the previous year.
    Turnover in the first five months rose particularly
strongly in the installations and automotive technology,
communications and telecommunications sectors, but components
and energy and automation showed a sharp decline.
    Kaske said domestic orders rose to 10.2 billion marks in
the first five months of this year, or nine pct above their
level in the same 1985/86 period, boosted in particular by
orders for the fully owned Kraftwerk Union AG subsidiary.
    Foreign orders grew one pct to 11.6 billion marks. An
increase in orders through newly acquired subsidiaries abroad
was balanced by the decline in the dollar.
    While the installations and automotive technology sector
showed a sharp rise in orders, energy and automation and
communications orders were below the level achieved in the same
period of 1985/86.
    Telecommunications orders remained at roughly the same
level.
    Kaske said investments were expected to remain around six
billion marks in 1986/87 after a 50 pct increase the previous
year. Research and development were likely to rise 13 pct to
6.1 billion marks or around 12 pct of turnover.


.I 15281
.C
bop;trade;
.W
GERMAN CURRENT ACCOUNT SURPLUS WIDENS IN FEBRUARY.
     WIESBADEN, March 26 - West Germany's current account
surplus widened to a provisional 6.6 billion marks in February
from a slightly downwards revised 4.8 billion in January, a
spokeswoman for the Federal Statistics Office said.
    The trade surplus in February widened to a provisional 10.4
billion marks from 7.2 billion in January, she added.
    The Statistics Office had originally put the January
current account surplus at 4.9 billion marks.
    The February trade surplus was well up on the 6.84 billion
mark surplus posted in the same month of 1986. But the current
account surplus was down slightly from the 6.85 billion surplus
recorded in February 1986.
    A Statistics Office statement said the widening of the
February current account surplus compared with January was due
to seasonal factors. Neither the trade nor current account
figures are seasonally adjusted.
    February imports, measured in terms of value, totalled
32.11 billion marks, a decline of 10 pct against February 1986
but a rise of 5.5 pct against January.
    Exports in February, also in value terms, totalled 42.56
billion marks, 0.5 pct less than in February 1986 but up 13 pct
compared with January.
    The Statistics Office said it was not yet able to calculate
the real change in exports and imports in February. But for
comparison purposes it noted that in January the average value
of imports had fallen 15 pct year-on-year while the average
value of exports had declined by only 4.4 pct.
    Within the current account, the services account had 300
mln marks deficit, supplementary trade items a 200 mln mark
surplus while transfer payments posted a 3.7 billion mark
deficit.
    Taking the first two months of 1987 together, imports in
value terms fell 14 pct to 62.6 billion marks compared with a
year earlier. The value of exports totalled 80.2 billion marks,
a decline of 7.4 pct against the same months of 1986.
    The resulting trade surplus of 17.6 billion marks for
January/February compares with a cumulative surplus of 14.1
billion marks in the year-ago period.
    The cumulative current account surplus for January and
February 1987 totalled 11.3 billion marks against 11.4 billion
marks a year earlier, the Statistics Office said.
    Bank economists said the rise in the February trade surplus
reflected an improvement in the terms of trade as well as
seasonal factors. The Federal Statistics Office said earlier
this week that February import prices fell 0.7 pct against
January while export prices were unchanged.
    "The rise in the nominal figures masks a lower export trend
that is not expected to change for several months at least,"
said an economist. He said the nominal trade surplus for 1987
as a whole is likely to fall only slightly from the record
112.2 billion marks in 1986 but other economists said the
surplus could fall to around 80 billion marks.
    An economist at the Bank fuer Gemeinwirtschaft (BfG) in
Frankfurt said a two-month comparison of trade figures gave a
more accurate picture of West Germany's trade position.
    He noted the 17.6 billion mark surplus for January and
February together was lower than the 21.6 billion mark surplus
posted in November and December.
    "The trend is clearly lower," he said.
    This economist, who declined to be named, said the February
rise was also partly explained by special factors in January,
when there had been a number of public holidays as well as
extremely cold weather, both of which hindered trade.


.I 15282
.C
earn
.W
KRUPP HAS SATISFACTORY 1986 RESULTS.
    ESSEN, West Germany, March 26 - The Fried. Krupp GmbH
<KRPG.D> steel and engineering group said it had a satisfactory
1986 despite a provisional 12 pct fall in total group sales to
18.1 billion marks from 20.7 billion the previous year.
    Third party turnover declined to 15.9 billion from 18.5
billion in 1985 while orders slipped to 15.5 billion marks from
16.9 billion, it said in a preliminary statement.
    Despite these figures, which reflected the dollar's
weakness against the mark and oil and raw materials price
falls, it said 1986 was a satisfactory year.
    The reason was the continued expansion of the machinery and
plant sector, which accounted for 42 pct of total sales.
    Krupp added that some areas of the mechanical engineering
business achieved notable growth rates and acquisitions had
underpinned machinery and component activities.
    An orders decline in the steel and, in particular, the
trading and services sectors, affected the group's total order
figures.
    However, "all business sectors contributed to the positive
results achieved in 1986," Krupp added, without giving details.
    Domestic orders decreased by five pct to 9.6 billion marks
from the previous year and foreign orders fell 14 pct to 5.9
billion, it said. Foreign business accounted for 38 pct of
orders against 40 pct in 1985.
    Orders received by the machinery and plant sector, 11
member companies which comprise the core area of the group,
rose by four mln marks last year to 6.9 billion, Krupp said.
    The group's orders in hand amounted to 9.1 billion marks at
end-December 1986 from 10.3 billion at the start of the year.
    Orders received by the steel sector last year decreased by
three pct to 6.2 billion marks from 1985, it said.
    The steel market weakened increasingly over the year,
mainly because of exchange rate movements, the deterioration in
foreign trade and a downturn in a number of customer
industries.
    The difficult market for sections and flats of quality
steel depressed order tonnages by around seven pct, Krupp said.
But special steel boosted by strong demand for stainless
cold-rolled flats, grew by five pct in tonnage terms.


.I 15284
.C
trade
.W
NO PESSIMISM FOR GERMAN EXPORTERS, MINISTRY.
    BONN, March 26 - Firms need not be pessimistic about export
prospects even though foreign markets have become more
difficult because of the mark's strength the Economics Ministry
said.
     The ministry's parliamentary state secretary Ludolf Georg
von Wartenberg, told a business conference German exports could
start rising again in real terms during 1987, reversing the
lower export trend which emerged in mid-1986.
    But even if the turnaround did not occur, there would be no
need to worry about the economy as long as the weakness of
exports did not affect currently good domestic demand.
    Von Wartenberg said consumer demand remained quite good but
noted there had been a cooling in the investment climate. "This
is certainly a reason for heightened watchfulness but not for
stimulative steps," he said.
    The best way for Bonn to help its exporters is to work
actively to promote free world trade, he added.
    Von Wartenberg said the economy still had good export
opportunities. Price alone was not the only factor in
international competitiveness, he said, adding German firms
have a reputation for high quality standards, prompt delivery
times and good service.
    Von Wartenberg said the government was in a difficult
position on its trade figures.  It faced international pressure
to reduce its trade surplus, but West Germans were worried
about the effect of the mark's strength on the country's
exporters.
    Reports about the trade surplus, especially overseas,
tended to concentrate on nominal trade figures, which rose to a
record 112.2 billion marks in 1986, he said. But this rise was
due entirely to the lower value of imports caused by the
decline of both the dollar and oil prices. German exports have
in fact been falling in real terms for sometime, he said.


.I 15285
.C
money-fx
.W
MONETARY AUTHORITIES SAID TO LOSE CREDIBILITY.
    By Etsuko Yamamoto, Reuters
    TOKYO, March 26 - The monetary authorities of the major
industrialised countries lost their credibility this week as
the dollar was sold off despite pleas from ministers and
widespread central bank intervention, dealers said.
    The dollar's fall below 150 yen, which follows last month's
Paris currency stabilisation agreement by the U.S., Japan, West
Germany, Britain, France and Canada, is a dramatic reversal of
the success of the Group of Five (G-5) 1985 New York Plaza
meeting to weaken the dollar, they said.
    The G-5 and the market agreed in 1985 that the dollar was
overvalued but this time the market and the authorities are on
different sides, dealers said.
    Apparent confusion in the ranks of the G-5 nations has
encouraged the market to challenge the authorities despite
concerted intervention by the central banks of the United
States, Japan, Britain and West Germany, they said.
    Pleas by Japanese Finance Minister Kiichi Miyazawa for
action to stabilise the dollar were matched over the weekend by
comments by U.S. Treasury Secretary James Baker that there was
no target zone for the dollar. The dollar was sold anyway.
    Yesterday's comment by Baker that he stood by the Paris
accord did nothing to reverse sentiment, dealers said.
    The intervention, backed by remarks by Fed Chairman Paul
Volcker and Japanese central bank governor Satoshi Sumita,
which a few months ago would have brought the dollar fall to a
halt, has done little but slow the rate of its decline, they
noted.
    The situation has again raised the question of whether
intervention can succeed against the trend in today's huge
currency markets. Dealers said the market's cool response to
intervention reflected a basic oversupply of dollars.
    "This means that the current dollar selling is not of a
sheer speculative nature but backed by real demand," said Koichi
Miyazaki, deputy general manager at Sanwa Bank.
    Dealers said the dollar will remain weak despite the
intervention and it is only a matter of time before some
operators try to push it below 148 yen. The dollar closed in
Tokyo today at 149.40 against New York's 149.30/40. Its record
low was 148.40 in Tokyo last Tuesday.
    Dealers said the dollar will gain only temporary support to
rise above 150 yen toward early April when the Group of Seven
industrial nations meets to discuss currencies again.
    The market expects the seven nations (the Paris six plus
Italy) to try to agree on another way to stabilise currencies
apart from intervention, a chief dealer at a U.S. Bank said.
    Dealers said they were unsure what other methods could be
used and they are sceptical anyway about how long the Paris
accord nations, particulary the U.S., Will remain willing to
prevent a further dollar fall given the continuing high U.S.
Trade deficit, especially with Japan.
    Further pressure from a protectionist U.S. Congress for a
lower dollar is also limiting Washington's options, they said.
    The market now thinks the central bank action is to slow
the dollar fall, not to push it back over 150 yen, said
Tadahiko Nashimoto, manager at Long Term Credit Bank of Japan.
    Another bearish factor for the dollar is expected large
forward dollar sales from April to June for export bills
falling due for Japanese exporters from April to September.
    The exporters had delayed in expectation of a further yen
depreciation, dealers said.
    Yesterday's request to 30 trading houses by the Ministry of
International Trade and Industry to restrict dollar sales looks
ineffective in light of this real demand, they said.
    The market is also anticipating active institutional dollar
sales to hedge currency risks on bond holdings from the new
business year starting April 1, dealers said.
    "The market seems to have established a new dollar trading
range between 147 and 149 yen," one dealer said.
    The dollar traded between 151 and 153 yen after the Paris
accord on February 22 and 150 yen was then considered the low
end for the dollar against the yen, he said.
    Some dealers now believe that if the dollar falls below 148
yen, it will pick up renewed downward momentum and slide to
145.


.I 15288
.C
trade
.W
******UK FEB TRADE DEFICIT 224 MLN STG VS DEFICIT 527 MLN IN JAN - OFFICIAL.
Blah blah blah.

.I 15289
.C
bop;trade;
.W
******U.K. FEB CUURENT ACCOUNT SURPLUS 376 MLN STG VS JAN SURPLUS 73 MLN - OFFICIAL.
Blah blah blah.

.I 15290
.C
gnp
.W
MALAYSIAN CENTRAL BANK SEES HIGHER 1987 GROWTH.
    KUALA LUMPUR, March 26 - Gross domestic product (GDP)
growth in 1987 is expected to grow by between 1.5 and two pct,
up from one pct in 1986, the central bank said.
    The forecast compares with the one pct GDP growth forecast
made by the Treasury last October.
    Bank Negara also said in its annual report that gross
national product (GNP) is expected to grow by 3.5 to four pct,
after declining 7.3 pct in 1986.
    It said that a turnaround in investor confidence since last
November had been spurred by a moderate improvement in oil and
commodity prices and a rise in manufacturing exports.
    Growth in 1987 is expected to come from the anticipated
rise in export earnings if the industrialised countries sustain
their average GNP growth at 2.5 to three pct, it added.
    Bank Negara said its forecast assumes that crude oil will
average 15.50 dlrs a barrel, rubber at 210 cents a kilo, palm
oil at 850 ringgit a tonne, tin at 17 ringgit a kilo and a rise
of 12 pct in manufacturing exports.
    It said Malaysia's international terms of trade will turn
around to rise by two pct in 1987 after declining 12 pct in
1986 and five pct in 1985.
    "In 1987, income will be higher, private consumer spending
is likely to recover and expand... The budget will remain under
strict control... The resource gap in the government's finances
on current account will be bridged over the near term," Bank
Governor Jaafar Hussein said in the report.
    The current account deficit is expected to narrow to 1.19
billion ringgit in 1986 or 1.8 pct of GNP from 1.79 billion or
2.5 pct of the GNP the previous year.
    The bank forecasts the inflation rate will increase by 1.5
pct, after its 0.7 pct rise in 1986.


.I 15291
.C
bop;trade;
.W
U.K. VISIBLE TRADE DEFICIT NARROWS IN FEBRUARY.
    LONDON, March 26 - Britain's visible trade deficit narrowed
to a seasonally adjusted provisional 224 mln stg in February
from 527 mln in January, The Trade and Industry Department
said.
    The current account balance of payments in February showed
a seasonally adjusted provisional surplus of 376 mln stg
compared with a surplus of 73 mln in January.
    Invisibles in February were put provisionally at a 600 mln
surplus, the same as in January.
    Seasonally adjusted, imports rose in February to 7.16
billion stg from 6.73 billion in January. Exports rose to a
record 6.93 billion last month from 6.20 billion in January.
    Trade Department officials said the improvement in
Britain's current account contrasted with most private
forecasts and they attributed much of the strength to imports
rising less quickly in February than might otherwise have been
expected.
    The Department said exceptionally cold weather in January
reduced exports that month and that there had been an element
of catching up in the February figures.
    The seasonally adjusted volume index, base 1980, a guide to
underlying non-oil trade, showed exports rising to 131.0 from
114.6 in January and imports rising to 142.2 from 136.5.
    The value of British oil exports in February rose to 751
mln stg from 723 mln in Jnauary while oil imports rose to 425
mln from 352 mln.
    The Department said the upward trend in non-oil export
volume continues and the underlying level of non-oil import
volume seems to have stablised.
    The Departnment said exports to the U.S. May be benefiting
from fluctuations in the mark and yen exchange rates.


.I 15292
.C
earn
.W
LUCAS SEES CONTINUED GROWTH IN SECOND HALF.
    LONDON, March 26 - Lucas Industries Plc <LUCS.L> said its
underlying performance would continue to improve in the second
half but profits would be restrained by low activity in U.K.
Commercial vehicle and tractor markets as well as in North
American electronics.
    The company earlier reported a two mln stg rise in pretax
profit to 40 mln in the six months to end-January. The figure
was some five mln below forecasts and Lucas shares dropped
sharply to 557.5p at 1130 GMT from last night's close of 590p.
    It said it would continue with plans for all its activities
to be internationally competitive and profitable.
    Costs of restructuring, reorganisation, employee training
and retraining, particularly in the UK automotive businesses,
together with high research and development spending would
affect profits in the short term.
    But Lucas said it was exploiting growth opportunities in
automotive markets, especially in vehicle breaking and engine
management systems. Recent acquisitions in North America had
strengthened Lucas Aerospace and Lucas Industrial systems.


.I 15293
.C
grain
.W
******IWC ups Soviet grain 1986/87 import estimate three mln tonnes to 29 mln - official.
Blah blah blah.

.I 15294
.C
wheat;grain;
.W
******IWC lifts 1986/87 world wheat, coarse grain estimate one mln tonnes to record 1,377 mln.
Blah blah blah.

.I 15298
.C
trade
.W
TRADE SURPLUS CUT WOULD BENEFIT JAPAN - SUMITA.
    TOKYO, March 26 - Bank of Japan Governor Satoshi Sumita
said it is in Japan's national interest to make greater efforts
to reduce its trade surplus.
    He told business executives the most important issues for
the world economy are the correction of international trade
imbalances and a solution to the world debt problem.
    To this end, Japan and the U.S. Must make medium- and
long-term efforts to alter economic structures which have
expanded the trade gap between the two nations. World economic
growth and therefore an expansion of debtor countries' export
markets are needed to solve the debt issue, he added.


.I 15300
.C
acq
.W
COMMISSION APPROVES RAINBOW/PROGRESSIVE MERGER.
    WELLINGTON, March 26 - The Commerce Commission has approved
a proposed merger between <Progressive Enterprises Ltd> and
<Rainbow Corp Ltd>, Rainbow said in a statement.
    The merger involves the formation of a new company <Astral
Pacific Corp Ltd> which will acquire all shares in both
companies on a one-for-one share exchange basis.
    Rainbow earlier this week lifted its stake in Progressive
to 52 pct from 44 pct. The statement said a new private
company, <Transcapital Corp Ltd>, fully owned by Rainbow
directors Craig Heatley, Gary Lane and Ken Wikeley, will
purchase this stake for an undisclosed cash sum.
    The Commission has also approved Transcapital acquiring up
to 45 pct of Astral Pacific, Rainbow said.
    <Brierley Investments Ltd>, which has been a frequent
critic of the merger, launched a full bid for Progressive at
4.20 N.Z. Dlrs a share last Monday.


.I 15302
.C
money-fx
.W
U.K. MONEY MARKET FORECAST REVISED TO DEFICIT.
    LONDON, March 26 - The Bank of England said it revised its
estimate of today's money market shortfall to around 350 mln
stg from a flat position.


.I 15303
.C
wheat;grain;
.W
IWC LIFTS WORLD GRAIN OUTPUT ESTIMATE TO RECORD.
    LONDON, March 26 - The International Wheat Council (IWC)
lifted its estimate for 1986/87 world wheat and coarse grain
production by one mln tonnes to a record 1,377 mln, compared
with 1,351 mln tonnes the previous season.
    In its monthly market report, the IWC said it is leaving
unchanged its forecast of world wheat production for the coming
1987/88 season at between 520 and 530 mln tonnes against a
record 534 mln in 1986/87. The one mln tonne upward revision in
1986/87 wheat production reflects several minor adjustments.
The IWC raised the 1986/87 coarse grain trade figure two mln to
87 mln tonnes. It left wheat trade unchanged at 86 mln.
    The IWC 1986/87 estimate for world trade in wheat and
coarse grain is thus estimated two mln tonnes higher at 173 mln
against 169 mln the previous season with the forecast three mln
rise in Soviet imports offset by small reductions elsewhere.
    The IWC said the area harvested for wheat in 1987/88 is
likely to be down from last year as low world prices and
restrictive national policies measures begin to take effect.
    At least four of the five major exporters expect to see a
drop in wheat sowings without offset in other countries. There
is still potential for even higher average wheat yields but the
IWC said there are increasing signs world output may level off.
    Although it is still early to assess the coarse grain
outlook, the IWC said barley acreage is likely to fall in the
European Community but increase in Canada. U.S. Maize area is
expected lower but oat sowings could rise.
    After damage to its maize crop last year, the Soviet Union
plans to expand this area by as much as 50 pct to over six mln
hectares in a year when many frost damaged wheat fields are
likely to be resown to this and other spring crops. Improved
weather and a further increase in the use of intensive
cultivation methods could therefore see a marked rise in Soviet
maize output in 1987, the IWC said.
    Any reduction in world coarse grain output would be
bolstered by the large carryover stocks from 1986/87, the IWC
said.
    It left its estimates of wheat and coarse grain stocks at
endof different marketing years unchanged at 178 and 210 mln
tonnes, respectively, against 160 and 167 mln a year earlier.
    After record world durum wheat production of 218.8 mln
tonnes last season, the IWC said there are already signs of
another large crop this coming season with higher output
expected in the EC, Canada, the U.S. And North Africa.


.I 15304
.C
dlr;money-fx;
.W
BANK OF JAPAN BUYS SMALL QUANTITY DOLLARS -DEALERS.
    TOKYO, March 26 - The Bank of Japan was thought to have
bought a small amount of dollars at around 149.30/40 yen,
dealers said.
    The dollar fluctuated marginally after the small-scale
intervention, believed to total several tens of mlns of dlrs,
they said. Large-scale buying by foreign banks or by a life
insurance company earlier pushed the dollar upwards, they said.
    Trading was not very active and dealers were watching for
further central bank intervention to smooth out any sharp
movements, but underlying dollar sentiment is still bearish.


.I 15305
.C
money-fx;interest;bop;trade;
.W
U.K. TRADE FIGURES BUOY HOPES OF INTEREST RATE CUT.
    By Rowena Whelan, Reuters
    LONDON, March 26 - The release of U.K. February trade data
showing that the current account surplus was a provisional 376
mln stg, up from a 73 mln surplus in January, has boosted hopes
of an early cut in interest rates, analysts said.
    Market forecasts had been for a worse outcome, with
expectations of a deficit in visible trade averaging about 750
mln stg, against the official figure of 224 mln stg, sharply
narrower than January's 527 mln deficit.
    "The figures are unreservedly good," Chase Manhattan
Securities economist Andrew Wroblewski said.
    Sterling rebounded on the trade figures, reversing a weaker
morning trend, to stand at 72.1 pct of its trade weighted index
against a basket of currencies at midday, unchanged from
yesterday's close but 0.3 points above the 1100 GMT level.
    The market had feared that a deteriorating non-oil trade
pattern would undermine international support for sterling,
which has been the motor behind the recent fall in U.K.
Interest rates. Money market sources said the market had begun
to doubt that a widely expected drop in bank base lending rates
to 9.5 pct from the present 10.0 pct was really on the cards.
    But sentiment now looks to have turned about again.
    There now looks to be no danger that the Chancellor of the
Exchequer Nigel Lawson's forecast of a 1987 current account
deficit of 2.5 billion stg will be exceeded, Wroblewski said.
    Seasonally adjusted figures showed imports rose in February
to 7.16 billion stg from 6.73 billion in January.
    Exports rose to a record 6.93 billion from 6.20 billion.
    However, Chris Tinker, U.K. Analyst at brokers Phillips and
Drew said the faster rise in exports than imports would prove
partly aberrational in coming months. He forecast the
Chancellor's Budget tax cuts would increase consumer
expenditure on imported goods.
    However, Warburg Securities economist Ian Harwood said his
firm was sharply revising its 1987 current account deficit
forecast in the light of the latest data, cutting one billion
stg off the expected full year total to about 1.75 billion stg.
    He said news of strong growth in exports of non-oil goods
confirmed recent bullish surveys among members of the
Confederation of British Industry.
    The growth in imports appears to be flattening, even if
January's bad weather had curbed consumer spending on overseas
goods and import-intensive stock building among manufacturers,
Harwood said.
    U.K. Government bonds, or gilts, surged by more than 1/2
point on the better-than-expected news, as earlier worries
about the figures evaporated.
    Sterling peaked at a high of 1.6075 dlrs, before settling
to a steady 1.6050 about 1300 GMT, nearly a cent higher than
the European low of 1.5960.
    However, analysts noted that the turnabout in market
sentiment still looks highly vulnerable to political news.
    Morning weakness in sterling and the gilt market was
largely attributed to a newspaper opinion poll showing that the
Conservative government's support was slipping.
    LONDON, March 26 - The Bank of England said it provided 15
mln stg in assistance to the money market this morning, buying
bank bills in band two at 9-13/16 pct.
    Earlier the Bank revised its money market liquidity
forecast from a flat position to a deficit of around 350 mln
stg.


.I 15308
.C
reserves
.W
GERMAN NET CURRENCY RESERVES RISE.
    FRANKFURT, March 26 - West German net currency reserves
rose by 300 mln marks in the third week of March to 82.0
billion, following a fall of 5.4 billion marks in the previous
week, the Bundesbank said.
    Non-currency reserves were unchanged at about 2.5 billion
marks, bringing net monetary reserves to 84.5 billion.


.I 15313
.C
money-fx
.W
CURRENCY EXCHANGE LOSS PUSHES MALAYSIA'S DEBT UP.
    KUALA LUMPUR, March 26 - An exchange loss of 7.6 billion
ringgit in 1986 pushed Malaysia's outstanding external debt up
to 50.99 billion ringgit, from 1985's 42.3 billion, the Central
Bank said in its annual report.
    Bank Negara said although Malaysia's net borrowing dropped
in 1986, its external debt rose due to the 30 pct appreciation
of the basket of currencies against which the ringgit is
pegged.
    The basket comprises principally the U.S. Dollar, yen,
mark, Swiss franc, French franc, sterling, guilder, Canadian
and Singapore dollars, it added.
    Bank Negara said growth in external debt, which declined
progressively from a peak of 58 pct in 1982 to 13.6 pct in
1985, rose by 20.2 pct in 1986.
    Malaysia's debt serving ratio of 17.6 pct of its exports in
1986 is within the prudency limit of 20 pct, Bank Negara
Governor Jaafar Hussein told reporters.


.I 15315
.C
trade
.W
U.S. TREASURY'S BAKER OPPOSES TAX INCREASE.
    NEW YORK, March 26 - U.S. Treasury Secretary James Baker
said that he opposes a Federal tax increase to help reduce the
budget deficit and favors spending cuts instead.
    "I don't think it's (a tax increase) is a very good idea
and I'm quite confident that President Reagan doesn't think
it's a very good idea," Baker said in an interview on Cable
News Network's "Moneyline" television program.
    He said U.S. taxpayers are taxed at a rate of 19 pct of GNP
which is traditionally where it has been, but the Federal
Government is spending at a rate of 24 pct of GNP. Baker said
spending cuts are clearly the best way to cut budget deficits.
    Baker said he opposed a stock transactions tax proposed by
House Speaker Jim Wright, D-Tex, or other special taxes.
    "The stock transfer tax would be a particularly unfortunate
approach to take," the Treasury Secretary said. He said the
United States has some of the most efficient capital markets in
the world and new taxes would impair efficiency.
    On the international front, Baker said banks must do more
lending to developing countries. He was questioned about this
after the Standard and Poor's Corp downgrading today of the
debt of six major money center bank holding companies, largely
because of their heavy developing nation loan exposure.
    Baker said that developing countries must adopt free market
economic policies such as in the United States. He said capital
flows will be required to support the needed reforms in the
economic systems of those countries.
    The money must come either through equity or debt and Baker
said that developing nations' "investment regimes do not
support enough equity investment, so you've got to have some
debt there."
    Commenting on the U.S. trade deficit, Baker said "I think
you're going to see a 15 to 20 billion dlr reduction this
year."


.I 15317
.C
money-fx
.W
TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT.
    WASHINGTON, March 26 - Treasury Secretary James Baker said
he stood by the Paris agreement among leading industrial
nations to foster exchange rate stability around current
levels.
    "I would refer you to the Paris agreement which was a
recognition the currencies were within ranges broadly
consistent with economic fundamentals," Baker told The Cable
News Network in an interview.
    "We were quite satisfied with the agreement in Paris
otherwise we would not have been a party too it," he said.
    Baker also noted the nations agreed in the accord to
"co-operate to foster greater exchange rate stability around
those levels."
    He refused to comment directly on the current yen/dollar
rate but said flatly that foreign exchange markets recently
tended "to draw unwarranted inferences from what I say."
    Baker was quoted on British Television over the weekend as
saying he has no target for the U.S. currency, a statement that
triggered this week's renewed decline of the dollar.
    "I think the Paris agreement represents evidence that
international economic policy co-ordination is alive and well,"
Baker said.
    The Treasury Secretary stressed however it was very
important for the main surplus countries to grow as fast as
they could consistent with low inflation to resolve trade
imbalances.
    He added that Federal Reserve Board chairman Paul Volcker
has also "been very outspoken" in suggesting main trading
partners grow as fast as they can.
   


.I 15319
.C
gold
.W
GERMAN ANALYSTS SEE GOLD RISING IN 2ND HALF 1987.
    FRANKFURT, March 26 - The price of gold bullion is likely
to rise in the second half of the year on increased private
investor demand, West German analysts said.
    Gold could rise as high as 500 dlrs per ounce later this
year, said Peter Witte, director of Westdeutsche Landesbank
Girozentrale's trading division, after a presentation by the
U.S. Mint to promote its gold and silver Eagle series coins.
    "A lot will depend on oil prices and developments on stock
exchanges," Witte said, adding he saw gold positioned for
further rises once it breaks out above 450 dlrs.
    Gold was fixed this morning in London at 411.30 dlrs.
    Despite current strong interest in gold mine stocks, many
investors still want to buy physical gold, Witte said.
    Interest in gold mine stocks may also wane if stock
exchange rallies under way in many countries start to waver.
    Hermann Strohmeyer, vice president of Commerzbank AG's
foreign exchange trading and treasury department, said gold is
poised to rise to 460 to 470 dlrs an ounce in the second half
of this year.
    The price is unlikely to fall much below 380 or 390 dlrs an
ounce, and probably will continue in a range between 380 and
430 dlrs in the first half of this year, he said.


.I 15321
.C
ship;crude;
.W
GULF ESCORTS STILL UNDER DISCUSSION - WEINBERGER.
    FORT WORTH, Texas, March 26 - No action has been taken yet
on the Reagan Adminstration's offer to escort Kuwaiti oil
tankers through the Gulf, but the issue is being discussed,
U.S. Secretary of Defence Caspar Weinberger said.
    The offer was made to Kuwait in light of Iran's deployment
of Chinese-built missiles to cover the entrance to the Gulf.
    Weinberger told reporters prior to a speech at Texas
Christian University that he did not think Iran and the United
States were moving towards a potential conflict, adding that
the Straits of Hormuz at the mouth of the Gulf were still "free
water."


.I 15324
.C
earn
.W
FIRST INTERSTATE <I> ESTIMATES LOSS ON BRAZIL.
    LOS ANGELES, March 26 - First Interstate Bancorp Chairman
Joseph Pinola said the bank holding company would lose about 16
mln dlrs per year, after taxes, if it had to put its medium and
long-term debt on non-accrual status.
    In an interview, he said that could result in about a 4.5
pct decline in annual earnings per share.
    Pinola said First Interstate, like other banks, has not yet
decided to put the loans, which Brazil stopped paying interest
on last month, on non-accrual status.
    "None of us really wants to injure negotiations that might
be going on," he said.
    First Interstate reported to the Securities and Exchange
Commission last week that it has about 339 mln dlrs in
medium-to long-term loans to Brazil.
    It said on December 31, 1986 its nonperformind Brazilian
outstanding debt totaled about 4.1 mln dlrs.
    First Interstate also has about 168 mln dlrs in short-term
loans or trade lines to Brazil.
    Pinola said he believes the solution to the Brazilian debt
crisis will be more political than economic, which he said he
finds, "very disquieting and discomforting."


.I 15325
.C
jobs
.W
******FRENCH UNEMPLOYMENT RISES TO SEASONALLY ADJUSTED 2.65 MLN IN FEBRUARY - OFFICIAL.
Blah blah blah.

.I 15327
.C
wheat;grain;
.W
IWC SAYS EFFECT OF LOWER SUPPORT PRICES LIMITED.
    LONDON, March 26 - Efforts by governments to control wheat
surpluses by cutting support prices have met with only partial
success, the International Wheat Council (IWC) says in its
latest monthly report.
    Faster results could be achieved by a policy of reducing
both price and areas, as employed in the United States, the IWC
says in a survey of support prices in the five main wheat
exporters - Argentina, Australia, Canada, the EC and the U.S.
    In some countries, for example Australia and Argentina,
which are highly dependent on wheat shipments for export
income, there may be problems in reducing production.
    A policy of cutting wheat production could lead to
unemployment, with job prospects outside agriculture limited.
Alternative crops may offer inferior returns which could then
lead to lost export revenue and balance of payments problems.
    The IWC outlines three courses of action open to
governments in wheat exporting countries.
    They could continue to support prices in the hope that when
the world economy improves demand for wheat will rise and
surpluses wil be reduced or eliminated.
    Alternatively, support could be limited to wheat which
could be easily sold, without needing to be stored for a long
period.
    This option may prove to be the most politically
unattractive and would result in many producers abandoning
wheat production, the report said.
    The third option would be for governments to distinguish
between the commercial and social aspects of agriculture,
possibly varying support prices according to farm size or
overall production.
    The IWC review covers support prices in the major exporting
countries since 1982. At some time during that period all the
producers cut support prices in response to growing surpluses.
    These changes did not always result in lower export
subsidies as on several occasions currency fluctuations more
than offset lower prices in the domestic currency.
    For example between 1985/86 and 1986/87 the EC intervention
price for bread wheat fell from 209.30 to 179.44 European
currency units (Ecus). It dollar terms, the currency in which
most export transactions are denominated, the intervention
price however rose to 193 dlrs from 168. The high cost of
supporting farm prices has put a strain on national exchequers
and some governments are now searching for ways to cut
expenditure, the report says.
    The proportion of world wheat output produced by the five
major exporters declined in the period covered by the survey
from 40 pct in 1982 to 35 pct in 1987. This was partly due to
increased production in China and India.
    The period saw an upward trend in yields, although this was
countered in the Argentina, the U.S. And Australia by lower
acreages.
    In Argentina a reduction in the sown area of about 20 per
cent was put down to low prices causing producers to switch to
other enterprises, particularly livestock while lower U.S.
Acreages are attributed to official incentives.


.I 15328
.C
earn
.W
MICKELBERRY CORP <MBC> 4TH QTR NET.
    NEW YORK, March 26 -
    Shr profit 61 cts vs loss 45 cts
    Net profit 3,568,000 vs loss 2,598,000
    Revs 34.6 mln vs 31.6 mln
    Avg shrs 5,861,000 vs 5,776,000
    Year
    Shr profit 56 cts vs loss 32 cts
    Net profit 3,374,000 vs loss 1,759,000
    Revs 132.0 mln vs 131.6 mln
    NOTE: 1985 quarter net includes 665,000 dlr tax credit.


.I 15330
.C
acq
.W
MICKELBERRY <MBC> COMPLETES SALE OF UNIT.
    NEW YORK, March 26 - Mickelberry Corp said it has completed
the previously-announced sale of the 51 pct of its C and W
Group subsidiary that it had retained to N W Ayer Inc for
undisclosed terms.
    Ayer bought the other 49 pct next year.
    Mickelberry said it will report a gain on the transaction.


.I 15331
.C
earn
.W
FLUOROCARBON CO <FCBN> 4TH QTR JAN 31 NET.
    LAGUNA NIGUEL, Calif., March 26 -
    Shr 26 cts vs 24 cts
    Net 1,144,000 vs 1,063,000
    Sales 23.2 mln vs 24.8 mln
    Year
    Shr 93 cts vs 1.40 dlrs
    Net 4,046,000 vs 6,111,000
    Sales 97.8 mln vs 104.0 mln
    NOTE: Prior year net includes gain 286,000 dlrs from
discontinued operations in year and loss 375,000 in quarter and
gain 260,000 dlrs in year from disposal of discontinued.


.I 15333
.C
jobs
.W
FRENCH FEBRUARY UNEMPLOYMENT HITS RECORD 2.65 MLN.
    PARIS, March 26 - French unemployment rose to a record
seasonally adjusted 2.65 mln in February from 2.61 mln in
January and 2.57 mln at the end of last year, the Labour
Ministry said.
    The rise took the percentage of the workforce out of a job
to 11.0 pct last month from 10.9 pct in January and 10.7 pct at
the end of 1986.
    In unadjusted terms unemployment fell by around 30,000 last
month to 2.70 mln.


.I 15335
.C
acq
.W
PHILIPS ELECTRICAL SELLS STAKE IN UNIDARE.
    LONDON, March 26 - <Philips Electrical (Ireland) Ltd> has
arranged the sale of the one mln ordinary shares it holds in
its subsidiary <Unidare Aluminium Ltd>, Unidare said.
    The placing has been arranged through <Allied Irish
Investment Bank Plc> at an ex-dividend price of 371 Irish pence
per share.


.I 15336
.C
earn
.W
******AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS.
Blah blah blah.

.I 15337
.C
bop;trade;
.W
BAKER SEES 15 TO 20 BILLION DLR DROP IN TRADE GAP.
    WASHINGTON, March 26 - Treasury Secretary James Baker said
he expected the U.S. Trade deficit to fall by 15 billion to 20
billion dlrs in 1987.
    Commenting on the deficit during an interview on Cable News
Network, Baker said "I think you're going to see a 15 to 20
billion dlr reduction this year." The deficit was 170 billion
dlrs in 1986.
    Baker noted that the benefits of a weaker currency take 12
to 18 months to affect the trade balance, and said it is now 18
months since the Plaza agreement to lower the dollar's value.
            


.I 15339
.C
earn
.W
AMERICAN MEDICAL INTERNATIONAL INC <AMI> NET.
    BEVERLY HILLS, Calif., March 26 - 2nd qtr
    Shr profit 32 cts vs loss 95 cts
    Net profit 28.0 mln vs loss 82.2 mln
    Revs 950.2 mln vs 862.0 mln
    1st half
    Shr profit 65 cts vs loss 62 cts
    Net profit 56.6 mln vs loss 53.5 mln
    Revs 1.88 billion vs 1.67 billion
    Avg shrs 92.2 mln vs 86.7 mln
    NOTE: Period ended February 28.
    Prior year net both periods includes pretax asset
writedowns of 114.6 mln dlrs and additions to reserves of 60.0
mln dlrs.
    Prior year net includes tax credits of 53.7 mln dlrs in
quarter and 32.9 mln dlrs in half.


.I 15342
.C
bop;trade;
.W
U.K. VISIBLE TRADE DEFICIT NARROWS IN FEBRUARY.
    LONDON, March 26 - Britain's visible trade deficit narrowed
to a seasonally adjusted provisional 224 mln stg in February
from 527 mln in January, The Trade and Industry Department
said.
    The current account balance of payments in February showed
a seasonally adjusted provisional surplus of 376 mln stg
compared with a surplus of 73 mln in January.
    Invisibles in February were put provisionally at a 600 mln
surplus, the same as in January.
    Seasonally adjusted, imports rose in February to 7.16
billion stg from 6.73 billion in January. Exports rose to a
record 6.93 billion last month from 6.20 billion in January.
    Trade Department officials said the improvement in
Britain's current account contrasted with most private
forecasts and they attributed much of the strength to imports
rising less quickly in February than might otherwise have been
expected.
    The Department said exceptionally cold weather in January
reduced exports that month and that there had been an element
of catching up in the February figures.
    The seasonally adjusted volume index, base 1980, a guide to
underlying non-oil trade, showed exports rising to 131.0 from
114.6 in January and imports rising to 142.2 from 136.5.
    The value of British oil exports in February rose to 751
mln stg from 723 mln in Jnauary while oil imports rose to 425
mln from 352 mln.


.I 15343
.C
reserves
.W
FRENCH RESERVES FALL ON DEBT REPAYMENT.
    PARIS, March 26 - French reserves fell in the week ended
March 19 following repayment of the bulk of the debt contracted
during January with the European Monetary Cooperation Fund, the
Bank of France said in its weekly statement.
    The repayment of capital and interest on this loan, taken
out during the strong pressure on the franc which preceded the
European Monetary System (EMS) realignment and the subsequent
Group of Five meeting in Paris, took place on March 13.
    It comprised the repayment of 11.25 billion francs' worth
of European Currency Units (ECUs), 9.72 billion francs' worth
of foreign currency and 1.72 billion francs' worth of special
drawing rights (SDRs), the Bank said.
    As a result foreign currency reserves fell to 114.69
billion francs on March 19 from 120.82 billion on March 12,
while ECU reserves fell to 62.02 billion francs from 73.23
billion.
    Gold reserves remained stable at 218.32 billion francs.


.I 15344
.C
acq
.W
******FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC.
Blah blah blah.

.I 15345
.C
cpi
.W
****** German March cost of living 0.2 pct below year ago (Feb 0.5 pct below) - official.
Blah blah blah.

.I 15346
.C
earn
.W
<TRIZEC CORP LTD> 1ST QTR JAN 31 NET.
    CALGARY, Alberta, March 25 -
    Shr 12 cts vs 10 cts
    Net 19.6 mln vs 17.6 mln
    Revs 276 mln vs 170.4 mln
    Avg shrs 85.3 mln vs 84.8 mln
    NOTE: Company owns 65 pct of <Bramalea Ltd>.
                           


.I 15348
.C
earn
.W
BOSTON EDISON CO <BSE> REGULAR DIVIDEND.
    BOSTON, March 26 -
    Qtly div 44.5 cts vs 44.5 cts in prior qtr
    Payable May one
    Record April 10


.I 15350
.C
cpi
.W
GERMAN COST OF LIVING FALLS IN MARCH ON YEAR-AGO.
    WIESBADEN, March 26 - The cost of living in West Germany
was provisionally unchanged in March compared with February but
fell 0.2 pct against March 1986, the Federal Statistics Office
said.
    In February the cost of living rose 0.1 pct from January
but fell 0.5 pct compared with February 1986.
    The office said final figures for March will be released in
about 10 days.


.I 15354
.C
acq
.W
FOOTE MINERAL <FTE> TO MERGE INTO RIO TINTO.
    EXTON, Pa., March 26 - Foote Mineral Co said it has signed
a letter of intent to merge into <Rio Tinto-Zinc Corp PLC> for
cash.
    The company said at the time of the acquisition, its assets
will include only lithium and ferrosilicon operations. Foote,
which is 83 pct owned by Newmont Mining Corp <NEM>, has signed
a letter of intent to sell its Cambridge operations and said it
is in talks on the sale of its manganese operations with
several companies.  Foote said Newmont has informally indicated
it would vote in favor of the Rio Tinto proposal.
    Foote said terms of the agreement, including price for the
proposed cash transaction, have not been released because they
are subject to a continuing due diligence investigation.
    The company said a definitive merger agreement is expected
to be negotiated within six weeks and shareholders are expected
to vote on the deal at a meeting expected to be held in June or
July.


.I 15355
.C
jobs
.W
U.S. FIRST TIME JOBLESS CLAIMS ROSE IN WEEK.
    WASHINGTON, March 26 - New applications for unemployment
insurance benefits rose to a seasonally adjusted 341,000 in the
week ended March 14 from 340,000 in the prior week, the Labor
Department said.
    The number of people actually receiving benefits under
regular state programs totaled 2,454,000 in the week ended
March 7, the latest period for which that figure was available.
    That was up from 2,507,000 the previous week.
     


.I 15357
.C
bop;trade;
.W
HONG KONG FEBRUARY TRADE SWINGS INTO DEFICIT.
    HONG KONG, March 26 - Hong Kong recorded a 3.51 billion
H.K. Dlr deficit in February after a 2.54 billion dlr surplus
in January as imports climbed and exports slid, the Census and
Statistics Department said.
    The deficit compared with a deficit of 1.76 billion dlrs in
February 1986.
    Imports rose to 24.12 billion dlrs, up 2.6 pct from
January's 23.52 billion dlrs and 42 pct above the 16.98 billion
dlrs recorded in February 1986.
    Total exports for the month fell 20.9 pct to 20.61 billion
dlrs from 26.06 billion in January.
    February exports were still 35.4 pct above the 15.22
billion dlrs recorded in the same month last year.
    Re-exports, the territory's traditional entrepot trade,
outpaced domestically produced exports for the first time since
March 1985.
    Re-exports fell 11.6 pct to 10.62 billion dlrs from 12.0
billion dlrs in January but were 54 pct above February 1986's
6.88 billion dlrs. Domestic exports slid 28.9 pct to 9.99
billion dlrs from January's 14.05 billion dlrs but were up 19.7
pct over the 8.35 billion dlrs recorded in February 1986.


.I 15358
.C
earn
.W
******BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS.
Blah blah blah.

.I 15360
.C
earn
.W
BEST PRODUCTS CO <BES> 4TH QTR JAN 31 NET.
    RICHMOND, Va., March 26 -
    Shr profit 1.44 dlrs vs profit 83 cts
    Net profit 39.0 mln vs profit 22.5 mln
    Sales 816.1 mln vs 865.3 mln
    Year
    Shr loss 95 cts vs profit eight cts
    Net loss 25.6 mln vs profit 2,223,000
    Sales 2,142,118 vs 2,234,768
    NOTE: Current year net both periods includes prtax
provisions for restructuring operations of 4,868,000 dlrs in
quarter and 38.1 mln dlrs in year.
    Latest year net includes 1,825,000 dlr tax credit and
2,600,000 dlr posttax loss from debt extinguishment.


.I 15362
.C
interest
.W
BANK OF SPAIN PROVIDES YEAR RECORD ASSISTANCE FUNDS.
    MADRID, March 26 - The Bank of Spain provided 1,145 billion
pesetas in assistance funds which bankers said reflected fears
of fresh increases in overnight rates.
    The daily auction was the biggest of the year and comes
after the previous record set last June 6 of 1,240 billion
pesetas.
    A spokesman for one of Spain top five banks said higher
overnight call money rates were expected in the short term in
view of disappointing money supply figures for February.
    The M-4 money supply, measured as liquid assets in public
hands, rose 16.7 pct last month against 8.1 pct in January and
compared with this year's eight pct target. Money supply growth
was 11.4 pct last year.
    The central bank on Tuesday raised overnight rates by a
quarter of a percentage point to 14 pct on demand for 746
billion pesetas. Rates stood at 12.1 pct at the start of the
year and have been increased to drain liquidity on rising
demand for funds. "The policy is proving counter-productive and
rates will have to come down in the long-term," the bank
spokesman said in reply to Reuters enquiries.
    He said higher rates were fuelling an influx of short-term
speculative capital from abroad.
    "At least 800 mln dlrs of current excess liquidity in the
system is convertible pesetas from West Germany and other
countries with much lower rates," he said.


.I 15365
.C
acq
.W
ETHYL CORP <EY> UNITS COMPLETE ACQUISITON.
    RICHMOND, Va., March 26 - Ethyl Corp said its subsidiaries
completed the acquisiton of Nelson Research and Development Co
<NELR>.
    The merger was approved following completion on Jan 27 of a
tender offer valued at approximately 55 mln dlrs, the company
said.
    It added that Nelson, based in Irvine, Calif., will be
operated as a wholly-owned subsidiary of Ethyl.
    Nelson designs and develops new drugs, Ethyl said.


.I 15368
.C
trade
.W
BRITISH POLITICIANS URGE JAPAN TRADE SANCTIONS.
    LONDON, March 26 - One hundred members of Britain's ruling
Conservative Party have signed a motion calling for trade
sanctions against Japan to force Tokyo to open its domestic
market to British goods.
    The government announced last week that Japan had a 5.9
billion dlr trade surplus with Britain in 1986.
    The Department of Trade and Industry said the government
was drawing up contingency plans to force Japan into opening up
its domestic markets but a spokesman said such moves were very
much a last resort.
    Ideas being considered included blocking Japanese companies
from trading in Britain and revoking licenses of Japanese
operations in the London financial district.


.I 15369
.C
money-fx;interest;bop;stg;trade;
.W
U.K. TRADE FIGURES BUOY HOPES OF INTEREST RATE CUT.
    By Rowena Whelan, Reuters
    LONDON, March 26 - The release of U.K. February trade data
showing that the current account surplus was a provisional 376
mln stg, up from a 73 mln surplus in January, has boosted hopes
of an early cut in interest rates, analysts said.
    Market forecasts had been for a worse outcome, with
expectations of a deficit in visible trade averaging about 750
mln stg, against the official figure of 224 mln stg, sharply
narrower than January's 527 mln deficit.
    "The figures are unreservedly good," Chase Manhattan
Securities economist Andrew Wroblewski said.
    Sterling rebounded on the trade figures, reversing a weaker
morning trend, to stand at 72.1 pct of its trade weighted index
against a basket of currencies at midday, unchanged from
yesterday's close but 0.3 points above the 1100 GMT level.
    The market had feared that a deteriorating non-oil trade
pattern would undermine international support for sterling,
which has been the motor behind the recent fall in U.K.
Interest rates. Money market sources said the market had begun
to doubt that a widely expected drop in bank base lending rates
to 9.5 pct from the present 10.0 pct was really on the cards.
    But sentiment now looks to have turned about again.
    There now looks to be no danger that the Chancellor of the
Exchequer Nigel Lawson's forecast of a 1987 current account
deficit of 2.5 billion stg will be exceeded, said Wroblewski.
    Seasonally adjusted figures showed that imports rose in
February to 7.16 billion stg from 6.73 billion in January.
    Exports rose to a record 6.93 billion from 6.20 billion.
    However, Chris Tinker, U.K. Analyst at brokers Phillips and
Drew said that the faster rise in exports than imports would
prove partly aberrational in coming months. He forecast the
Chancellor's Budget tax cuts would increase consumer expediture
on imported goods.
    However, Ian Harwood, economist at Warburg Securities, said
his firm was sharply revising its 1987 current account deficit
forecast in the light of the latest data, cutting one billion
stg off the expected full year total to about 1.75 billion stg.
    He said news of strong growth in exports of non-oil goods
confirmed recent bullish surveys among members of the
Confederation of British Industry.
    The growth in imports appears to be flattening, even if
January's bad weather had curbed consumer spending on overseas
goods and import-intensive stock building among manufactureres,
Harwood said.
    U.K. Government bonds, or gilts, surged by more than 1/2
point on the better-than-expected news, as earlier worries
about the figures evaporated.
    Sterling peaked at a high of 1.6075 dlrs, before settling
to a steady 1.6050 dlrs about 1300 GMT, nearly a cent higher
than the European low of 1.5960.
    However, analysts noted that the turnabout in market
sentiment still looks highly vulnerable to political news.
    Morning weakness in sterling and the gilt market was
largely attributed to a newspaper opinion poll showing that the
Conservative government's support was slipping.
    The Marplan poll, published in "Today," showed Conservative
support had fallen to 36 pct, from 38 pct last month, while the
Alliance of Liberals and Social Democrats had rallied to 31
pct, from 21 pct, to run neck and neck with the Labour Party,
whose own support fell from 38 pct.
    The poll was taken after the Budget, which was greeted
enthusiastically by financial markets but seems to have left
the voters indifferent, political observers said.
    Another regular poll is due tomorrow, and eonomists warn
that today's improved sentiment could be dented if support for
Prime Minister Margaret Thatcher slips again.
    This upsetting of the markets' political perceptions, which
are all but discounting a Conservative victory in the upcoming
general election, made them more sensitive to the trade data,
Harwood said. "The news did come as a very, very substantial
relief," he said.
    However, on the interest rate front, economists caution
that Lawson might be wary of leaving sterling vulnerable by
encouraging another base rate fall. They noted Lawson had
already got an inflation-reducing cut in mortgage rates in
response to lower base rates, so domestic political reasons for
lower rates have been curtailed.


.I 15370
.C
crude;trade;
.W
S. KOREA MAY BUY U.S. OIL TO AID TRADE BALANCE.
    SEOUL, March 26 - South Korea is studying a plan to buy
more coal from the United States and to start importing Alaskan
crude oil to help reduce its huge trade surplus with the United
States, Energy Ministry officials said today.
    They said the plan would dominate discussions at two-day
energy talks between officials of the two countries in
Washington from April 1.
    Huh Sun-yong, who will attend the talks with three other
Seoul government officials, told Reuters that Seoul was
"positively considering buying a certain amount of Alaskan oil
beginning this year as part of our government's overall plan to
reduce a widening trade gap between the two countries."
    Huh said however that South Korean refineries considered
the Alaskan oil economically uncompetitive.


.I 15371
.C
acq
.W
BP <BP> TO HOLD NEW YORK PRESS CONFERENCE.
    NEW YORK, March 26 - British Petroleum Co PLC said it has
scheduled a New York press conference for 1300 EST/1800 gmt
today at which senior management will discuss the company's
proposed acquisition of the 45 pct of Standard Oil Co <SRD>
that it does not already own for 70 dlrs per share.
    The offer is worth about 7.4 billion dlrs.


.I 15372
.C
money-fx
.W
******U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS.
Blah blah blah.

.I 15373
.C
money-fx
.W
******TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES.
Blah blah blah.

.I 15374
.C
gold
.W
GERMAN ANALYSTS SEE GOLD FIRMING LATER THIS YEAR.
    FRANKFURT, March 26 - The price of gold bullion is likely
to rise in the second half of the year on increased private
investor demand, West German analysts said.
    Gold could rise as high as 500 dlrs per ounce later this
year, said Peter Witte, director of Westdeutsche Landesbank
Girozentrale's trading division, after a presentation by the
U.S. Mint to promote its gold and silver Eagle series coins.
    "A lot will depend on oil prices and developments on stock
exchanges," Witte said, adding he saw gold positioned for
further rises once it breaks out above 450 dlrs.
    Gold was fixed this morning in London at 411.30 dlrs.
    Despite current strong interest in gold mine stocks, many
investors still want to buy physical gold, Witte said.
    Interest in gold mine stocks may also wane if stock
exchange rallies under way in many countries start to waver.
    Hermann Strohmeyer, vice president of Commerzbank AG's
foreign exchange trading and treasury department, said gold is
poised to rise to 460 to 470 dlrs an ounce in the second half
of this year.
    The price is unlikely to fall much below 380 or 390 dlrs an
ounce, and probably will continue in a range between 380 and
430 dlrs in the first half of this year, he said.


.I 15376
.C
money-fx;interest;
.W
U.K. MONEY MARKET RECEIVES 226 MLN STG ASSISTANCE.
    LONDON, March 26 - The Bank of England said it operated in
the money market this afternoon, buying 226 mln stg in bills.
    In band one, the central bank bought 37 mln stg treasury
bills and 72 mln stg bank bills at 9-7/8 pct together with 117
mln stg band two bank bills at 9-13/16 pct.
    This brings total money market help so far today to 241 mln
stg and compares with the Bank's revised estimate of a 350 mln
stg shortfall.


.I 15378
.C
money-fx
.W
******BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL.
Blah blah blah.

.I 15379
.C
acq
.W
MCO <MCO>, MAXXAM <MXM> HOLDERS APPROVE MERGER.
    LOS ANGELES, March 26 - MCO Holdings Inc said its
shareholders and those of MAXXAM Group Inc have approved the
proposed merger of the two companies.
    MCO said one MAXXAM shareholder has filed an objection to
the proposed settlement of shareholder actions related to the
merger in the Delaware Court of Chancery. A hearing on the
settlement proposal is scheduled for March 27... The merger is
subject to court approval of the settlement as well as to other
conditions.


.I 15381
.C
earn
.W
PRICE CO <PCLB> 2ND QTR MARCH 15 NET.
    SAN DIEGO, March 26 -
    Shr 34 cts vs 29 cts
    Net 16.7 mln vs 13.3 mln
    Sales 678.7 mln vs 531.0 mln
    Avg shrs 48.9 mln vs 45.8 mln
    1st half
    Shr 81 cts vs 69 cts
    Net 39.5 mln vs 31.7 mln
    Sales 1.71 billion vs 1.35 billion
    Avg shrs 48.9 mln vs 45.8 mln
    NOTE: Twelve and 28-week periods.


.I 15382
.C
earn
.W
CAROLIAN SYSTEMS SEES LOWER FISCAL 1987 PROFIT.
    TORONTO, March 26 - <Carolian Systems International Inc>
said it anticipates profit for fiscal 1987 ending June 30 will
be lower than fiscal 1986 earnings of 410,000 dlrs, despite an
expected revenue increase of 37 pct to more than 3.5 mln dlrs.
    After an extraordinary expense associated with the
December, 1986 withdrawal of a planned common share offering,
"we expect to be modestly profitable for the year, but below the
410,000 dlrs earned in fiscal 1986," the company said.
    Carolian previously reported fiscal six month profit of
12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs,
compared to earnings of 69,829 dlrs in the prior year.
    The company said it anticipated fiscal 1987 earnings to be
lower due to withdrawal of its share offering, computer
equipment shipment delays and costs associated with sales staff
expansion.
    A strengthening Canadian dollar against U.S. currency will
also adversely affect revenues and earnings, since 85 pct of
revenues are generated by sales outside Canada, said Carolian,
a leading supplier of utility software for Hewlett-Packard
computer systems.


.I 15383
.C
dlr;money-fx;
.W
******BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS.
Blah blah blah.

.I 15385
.C
money-fx;trade;
.W
U.S TREASURY'S MULFORD REAFFIRMS G-6 AGREEMENT.
    WASHINGTON, March 26 - Treasury Assistant Secretary David
Mulford reaffirmed U.S. backing for the Paris Agreement among
six industrial nations to cooperate closely to foster exchange
rate stability around current levels.
    In testimony prepared for delivery before a Senate banking
subcommittee, Mulford said there was broad recognition in Paris
that "further substantial exchange rate shifts could damage
growth and adjustment prospects."
    But he also said while there are clear understandings among
the countries regarding cooperation, "We have refrained from
establishing a system of target zones or ranges."
    Mulford also said the six nations have not spelled out the
way in which they intend to deal with possible market
developments.
    He said governments must retain flexibility in dealing with
exchange market pressures and efforts to establish rigid
exchange rate objectives "or to specify too precisely the goals
of intervention" would hurt official attempts to react to
market pressures, he said.
    Accordingly, Mulford said setting specific currency
objectives and intervention to achieve those objectives would
be counterproductive.
    Commenting on the trade deficit, Mulford reiterated the
Treasury position that the current account deficit will decline
from 148 billion dlrs last year to around 130 billion dlrs this
year, due to the exchange rate adjustments of the past 18
months.
    But he added trade imbalances would also be corrected by
commitments from West Germany and Japan to stimulate their
economies and by U.S. efforts to cut the budget deficit and
enhance U.S. competitiveness.
    He also said some newly industrialized countries should let
their currencies appreciate.


.I 15386
.C
wheat;grain;barley;corn;
.W
FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED.
     PARIS, March 26 - French operators have requested licences
to export 675,500 tonnes of maize, 245,000 tonnes of barley,
22,000 tonnes of soft bread wheat and 20,000 tonnes of feed
wheat at today's European Community tender, traders said.
    Rebates requested ranged from 127.75 to 132.50 European
Currency Units a tonne for maize, 136.00 to 141.00 Ecus a tonne
for barley and 134.25 to 141.81 Ecus for bread wheat, while
rebates requested for feed wheat were 137.65 Ecus, they said.


.I 15387
.C
gold
.W
U.S. GOLD EAGLE SALES PROJECTED AT 3.1 MLN OUNCES.
    FRANKFURT, March 26 - American Eagle gold bullion coin
sales are projected at 3.1 mln troy ounces in their first year
on the market, well above the target of 2.2 mln, Donna Pope,
director of the U.S. Mint, told journalists.
    World sales, which began on October 20, 1986, reached 2.193
mln ounces in less than six months of sales. This made it world
market leader with a share of 37 pct in 1986, Pope said.
    Pope said that in volume terms, nearly half of all gold
Eagle sales were within North America, roughly 40 pct were in
Europe and about eight pct in Asia.
    She said despite introduction of several new gold bullion
coins on the market recently, the Mint is aiming to preserve
the Eagle's strong market share with extensive publicity.
    The Mint uses mainly newly mined U.S. Gold for the coins,
as long as this is available at market prices. The remaining
gold is taken either from U.S. Treasury stocks, or from the
open market, Pope said.
    Gold analysts said the Eagle is facing competition here
from the Canadian Maple Leaf, and also to a lesser extent from
the South African Krugerrand. Some estimated the Maple Leaf's
West German market share at 60 pct.
    The figures may be distorted, as many German investors buy
gold bullion in Switzerland or Luxembourg to escape the 14 pct
value-added tax imposed here. Including the tax, the one-ounce
coins traded today at 906 marks, they said.
    Competition may also come from new gold coins, including
Belgium's ECU, which began sales today. Britain and Australia
also have plans to mint gold bullion coins, the analysts said.


.I 15388
.C
acq
.W
NEOAX <NOAX> TO SELL NOVATRONICS FOR 20 MLN DLRS.
    LAWRENCEVILLE, N.J., March 26 - Neoax Inc said it has
agreed to sell the assets and business of its Novatronics
Division to Veeco Instruments Inc <VEE> for 20 mln dlrs.
    Neoax said it expects a gain of about nine mln dlrs on the
transaction which is expected to becomleted during the second
quarter, adding the gain will be sheltered by its tax loss
carryforwards.
    Novatronics makes military-specification power supplies and
avionics components for various prime government defense
contractors. It had 1986 sales of 21 mln dlrs.


.I 15389
.C
earn
.W
PONCE FEDERAL BANK FSB <PFBS> RAISES DIVIDEND.
    PONCE, P.R., March 26 -
    Qtly div nine cts vs 7.5 cts in prior qtr
    Payable April 15
    Record March 31


.I 15390
.C
earn
.W
FOOTHILL GROUP <FGI> SEES BETTER FIRST QUARTER.
    NEW YORK, March 26 - Don Gevirtz, chairman of The Foothill
Group Inc, told Reuters the company's first quarter results
will be up sharply over last year's eight cents a share.
    "First quarter results will be dramatically better," he
said following a presentation to analysts. He cited a sharp
drop in non-earning assets, healthy asset growth and lower
expenses.
    He declined to predict specific results for the first
quarter. In the 1986 first quarter, the commerical finance
company earned 606,000 dlrs, or eight cts per share.
    Gevirtz also declined to predict full year results, but
said, "We expect an excellent year." In 1986 Foothill earned
3,239,000 dlrs, or 41 cts per share.
    Analysts expect Foothill to record earnings of 65 cts to 85
cts a share in 1987.
    During the presentation Gevirtz said Foothill has reduced
to less than five pct the company's level of non-performing
assets, which was as high as eight pct in previous years.
    David Hilton, chief financial officer, said the company's
general and administrative expenses in 1987 will be reduced to
about 3.0 to 3.5 pct of average assets from 4.3 pct in 1986.
    The company had average assets of 399.8 mln dlrs from
continuing operations and 29.8 mln dlrs from discontinued
operations in 1986, according to its annual report.


.I 15392
.C
dlr;money-fx;
.W
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS.
    PARIS, March 26 - The Bank of France intervened on the
market to buy dollars and sell yen to support the U.S.
Currency, dealers said.
    A major French bank said it acted for the central bank in
buying between five and 15 mln dlrs against yen.
    A dealer at another bank said his bank had been asked to
publicise the intervention, to send a clear signal to the
markets that central banks were acting in concert to maintain
the exchange rates agreed to be appropriate at last month's
meeting of the Group of Five and Canada in Paris.
    The dollar was being quoted at 6.0950/70 francs in early
afternoon dealings after a fix of 6.09425 francs.
    The major French bank said it sold yen at a rate of 149.28
against the dollar.
    The U.S. Currency was subsequently being quoted at
149.25/35.
    The Bank of Japan was reported in the market overnight to
bolster the credibility of the Paris accord following several
days of pressure against the dollar.
    Pressure developed after U.S. Treasury Secretary James
Baker repeated earlier statements that the Reagan
administration had no targets for the dollar, apparently
undermining the assumption that the agreement in Paris had
fixed broad fluctuation ranges for major currencies.
    Baker later said his remark had been misinterpreted.


.I 15393
.C
acq
.W
STANDARD <SRD> REFERRING BP <BP> BID TO GROUP.
    CLEVELAND, March 26 - Standard Oil Co said British
Petroleum Co Plc's proposed offer of 70 dlrs a share for the 45
pct of Standard's stock not held by BP is being referred to a
special committee of the company's board.
    This committee, which is composed of the independent,
non-exective directors of the company, was formed in April 1986
for the purpose of monitoring the relationship between Standard
Oil and BP.
    Standard said the group will consider BP's offer in due
course noting the committee has retained the First Boston Corp
and Cravath Swaine and Moore as advisers.               


.I 15395
.C
earn
.W
ANCHOR GLASS <AGLS> NOW SEES HIGHER 1ST QTR NET.
    TAMPA, Fla., March 26 - Anchor Glass Container Corp said
first quarter net income is now expected to exceed the 3.1 mln
dlrs earned before extraordinary items in the year earlier
quarter.
    Previously, the company had said first quarter results
would likely be lower than for the 1986 period due to
production disruptions caused by the large number of production
line changes scheduled during the first quarter, its statement
pointed out.
    While the disruptive effects of the production line changes
had occurred in line with expectations, Anchor Glass said,
first quarter operating results were helped by lower than
anticipated operating costs and improved margins on sales as a
result of a more favorable product mix.
    The company said its income performance for the full year
remains very good.
    It also said Anchor Hocking Corp <ARH> has converted the
entire principal balance of its Anchor Glass convertible
subordinated note to 576,694 Anchor Glass common shares.
    Anchor Glass said the conversion decreased its total debt
and increased stockholders' equity by about 9.4 mln dlrs and
increased common shares outstanding to 13,902,716.
    It said the conversion will also reduce its annualized net
interest expense by about 1.1 mln dlrs, or 600,000 dlrs after
taxes.


.I 15396
.C
earn
.W
MACNEAL-SCHWENDLER CORP <MNS> RAISES PAYOUT.
    LOS ANGELES, March 26 -
    Qtly div five cts vs 2-1/2 cts prior
    Pay June 10
    Record May 29
    NOTE: Prior payment adjusted for two-for-one stock split
declared recently.


.I 15399
.C
earn
.W
VIACOM INTERNATIONAL INC <VIA> SETS QUARTERLY.
    NEW YORK, March 26 -
    Qtly div seven cts vs seven cts prior
    Pay May Eight
    Record April 17


.I 15401
.C
money-fx
.W
U.K. MONEY MARKET GETS 25 MLN STG LATE HELP.
    LONDON, March 26 - The Bank of England said it provided
about 25 mln stg in late help to the money market, bringing the
total assistance today to 266 mln stg.
    This compares with the bank's revised estimate of a 350 mln
stg money market shortfall.


.I 15405
.C
earn
.W
PHLCORP <PHX> HAS BREAKEVEN RESULTS.
    PHILADELPHIA, March 26 - PHLCORP Inc said for November 14
through December 31, its first reporting period after emerging
from reorganization proceedings, it earned 86,000 dlrs on
revenues of 47 mln dlrs, excluding 2,300,000 dlrs in gains on
the sale of real estate and 800,000 dlrs in tax credits.
    The company is the successor to Baldwin-United Corp.


.I 15412
.C
acq
.W
FOOTE MINERAL TO MERGE INTO RIO TINTO.
    EXTON, Pa., March 26 - Foote Mineral Co said it signed a
letter of intent to merge into Rio Tinto-Zinc Corp PLC for
cash.
    Foote, 83 pct owned by Newmont Mining Corp, said Newmont
has informally indicated it would vote in favor of the Rio
Tinto proposal.
    Foote said terms of the agreement, including price for the
proposed cash transaction, have not been released because they
are subject to a continuing due diligence investigation.
    The company said a definitive merger agreement is expected
to be negotiated within six weeks and shareholders are expected
to vote on the deal at a meeting expected to be held in June or
July.


.I 15413
.C
alum
.W
ALUMINIUM SCRAP RECOVERY AND USAGE TO RISE.
    LONDON, March 26 - Aluminium scrap recovery and usage and
output of secondary metal will continue to rise, said Shearson
Lehman Brothers in a review of the secondary aluminium market
which details cost and demand factors.
    Although primary smelting costs have declined generally in
recent years, the still substantial energy cost savings offered
by secondary smelters will continue to make re-melted material
increasingly attractive.
    It takes around 15,000 kilowatt hours (kwh) of electricity
to produce one tonne of primary aluminium compared with around
550 kwh for one tonne of secondary metal, Shearson said.
    On the demand side, developments in automobiles and
packaging bode well for secondary aluminium consumption.
    Automobile production, although expected to fall this year,
is still on an upward trend and will continue to be so for the
foreseeable future and, in addition, use of aluminium castings
is gaining wider acceptance in the automobile industry,
particularly in the U.S.
    In packaging, Shearson does not expect aluminium to
dominate the beverage can market in any of the other major
economies to the extent it does in the U.S., But says there is
evidence recycling is on the increase in other countries.
    In addition to the cost savings involved, technology
advances now enable alloys of higher purity to be produced by
the secondary aluminium industry, Shearson said.
    There is not likely to be a problem of availability as the
U.S. Has a huge scrap reservoir and this is also true of
several European countries, albeit on a smaller scale.


.I 15414
.C
acq
.W
CROSS AND TRECKER <CTCO> BUYS AUTOMATION UNIT.
    BLOOMFIELD, MICH., March 26 - Cross and Trecker said it
agreed to acquire the Alliance Automation Systems division of
Gleason Corp <GLE> for an undisclosed amount of cash.
    It said the Gleason division manufactures automated
assembly and test systems used in the production of small to
medium size components for a number of industries, including
automotive, electronic and appliance.
    Alliance Automation had 1986 sales of about 35 mln dlrs and
employs 200.


.I 15415
.C
earn
.W
SALANT CORP <SLT> 1ST QTR FEB 28 NET.
    NEW YORK, March 26 -
    Oper shr profit seven cts vs loss 12 cts
    Oper net profit 216,000 vs loss 401,000
    Sales 21.4 mln vs 24.9 mln
    NOTE: Current year net excludes 142,000 dlr tax credit.
    Company operating in Chapter 11 bankruptcy.


.I 15417
.C
earn
.W
HEALTHMATE INC <HMTE> 4TH QTR LOSS.
    NORTHBROOK, ILL., March 26 -
    Shr loss five cts vs loss six cts
    Net loss 473,784 vs loss 489,257
    Revs 268.8 mln vs 81.7 mln
    Avg shrs 9,245,247 vs 8,035,326
    Year
    Shr loss 17 cts vs loss 20 cts
    Net 1,512,534 vs loss 1,553,592
    Revs 1,448,310 vs 515,225
    Avg shrs 8,745,132 vs 7,619,863


.I 15418
.C
trade;jobs;
.W
KEATING REVISES DOWN AUSTRALIAN GROWTH FORECAST.
    CANBERRA, March 26 - Treasurer Paul Keating forecast
economic growth at slightly under two pct in the financial year
ending June this year, down from the 2.25 pct forecast
contained in the 1986/87 budget delivered last August.
    Australia's terms of trade also fell, by 18 pct, over the
past two years, he told Parliament. Terms of trade are the
difference between import and export price indexes.
    Despite the figures, the budget forecast of about 1.75 pct
annual growth in employment would be met, Keating said.
    Unemployment is currently at 8.2 pct of the workforce.
    "This government is dragging Australia through a trading
holocaust the kind of which we have not seen since the Second
World War," Keating said.
    "We are not pushing this place into a recession. We are not
only holding our gains on unemployment, we are bringing
unemployment down," he said, adding that the government had help
the country avoid recession.


.I 15422
.C
earn
.W
NATIONAL BANC OF COMMERCE CO <NBCC> SETS PAYOUT.
    CHARLESTON, W.Va., March 26 -
    Qtly div 14 cts vs 14 cts prior
    Pay April Eight
    Record March 26


.I 15423
.C
earn
.W
HARSCO CORP <HSC> SETS REGULAR PAYOUT.
    CAMP HILL, Pa., March 26 -
    Qtrly div 25 cts vs 25 cts
    Pay May 15
    Record April 15


.I 15424
.C
cocoa
.W
MADAGASCAR COCOA PRODUCTION ESTIMATED HIGHER.
    ANTANANARIVO, March 26 - Madagascar's cocoa production is
estimated 13 pct higher this year at 2,720 tonnes, up from
2,400 in 1986, Agriculture Ministry officials said.
    This improvement reflects the government's efforts over the
last seven years to extend existing cocoa plantations and plant
new higher yielding varieties, particularly at the northern tip
of the island, they said.
    Last year, Madagascar exported 2,189 tonnes of high quality
cocoa, up from 1,624 in 1985, the Trade Ministry said.
    This year's exports are estimated at 2,400 tonnes.


.I 15425
.C
earn
.W
COMPUTER ASSOCIATES <CA> SETS TWO FOR ONE SPLIT.
    GARDEN CITY, N.Y., March 26 - Computer Associates
International Inc said its board has declared a two-for-one
stock split, payable May Seven, record April Seven.


.I 15426
.C
reserves
.W
SWISS NET CAPITAL EXPORTS RISE IN 1986.
    ZURICH, March 26 - Increased activity by Switzerland's
banks pushed net capital exports to a provisional 11.7 billion
francs last year from 10.0 billion in 1985, the National Bank
said in a pre-publication copy of its annual report.
    It also said the current account surplus of the Swiss
balance of payments reached a provisional 13.5 billion francs
last year, from 12.8 billion in 1985.
    The National Bank's currency reserves rose by 1.8 billion
francs, against a 2.8 billion rise in 1985. However, taking
into accounts effects of the shift in exchange rates, reserves
actually fell in value by 1.9 billion.
    The banks' net capital exports climbed to 5.4 billion
francs, from 5.1 billion in 1985, while capital exports by
domestic non-banks fell to 5.0 billion from 9.1 billion.
    The National Bank gave the following figures (1985 in
brackets)
    Current Account +13.5 billion (+12.8 in 1985), made up of:
    Goods                     -7.1 (-8.7)
    Services                  +10.1 (+9.8)
    Factor Income             +12.5 (+13.7)
    Transfers                 -2.0 (-2.0)
 Capital Account -11.7 billion (-10.0 in 1985) made up of
    Direct Investment                          N/A  (-6.3)
    Portfolio Investment                       N/A  (-2.8)
    Capital Traffic of Banks                  -10.4 (-14.2)
    Other Capital Traffic Included             N/A  (+5.6)
    Traffic not Included and Statistical Error N/A  (+7.7)
    Change in Currency Reserves of the National Bank +1.8
(+2.8)
    Interest Income on Foreign Currency        +2.4 (+3.4)
    Foreign Currency Transactions              -0.6 (-0.6)


.I 15427
.C
ship
.W
ST LAWRENCE SEAWAY OPENING STILL MARCH 31.
    CHICAGO, March 26 - The St Lawrence Seaway between Lake
Ontario and Montreal is still scheduled to open for the
shipping season on March 31, a Seaway official said.
    The Great Lakes could have been open for traffic earlier
this month due to the mild Winter, but scheduled repairs to the
Welland Canal joining Lake Erie with Lake Ontario will keep
that section closed until the April 1 opening, she said.
    One lock system in the four-lock Soo Canal joining Lake
Superior with Huron was opened on the morning of March 22, but
only three commercial vessels have been locked through so far,
according to an U.S. Army Corps of Engineers official.
    The Soo Canal is currently only open for daylight vessel
movement, with 24 hour movement allowed beginning March 29, she
added.


.I 15428
.C
grain
.W
DUTCH GRAIN LEVY TEST CASE TO START IN APRIL.
    ROTTERDAM, March 26 - A large Dutch animal feed compounder
will begin formal legal proceedings early next month as a test
case on the way the EC grain co-responsibility levy is applied,
a spokesman for Dutch grain and feed trade association, Het
Comite, told Reuters.
    Het Comite has been co-ordinating national actions against
alleged distortions caused by currency factors in the levy and,
since December, has lodged more than 80 individual cases with
the Business Appeal Court in The Hague.
    The basic complaint is that the levy does not take account
of currency cross-rates of exchange and therefore compounders
in countries with strong currencies may have to pay more in
their own currency than is paid to them by producers in another
country.
    Het Comite has obtained a temporary agreement that
companies can pay the amount they receive toward the levy
rather than paying a full guilder amount to the Dutch grain
commodity board.
    The spokesman said Het Comite will provide financial and
legal backing to the test case in the Business Administration
Court in the Hague. Oral proceedings are to begin on April 10.
    The spokesman said Het Comite finally selected the company
for the test case from among the 80 lodged "because the bill
(the firm) received from the commodity board for payment of the
levy contained significant currency distortions and involved
grain from a wide variety of origins." The name of the company
is not being made public.
    The Administration Court is not expected to make a final
ruling on the case in the near future. The Het Comite spokesman
said it was very likely it would refer questions to the Appeal
Court in Luxembourg, and "as a result it could easily be another
nine to 12 months before the matter is finally resolved."
    Meanwhile, the actions by Dutch animal feed compounders are
putting pressure on the commodity board to urge the Dutch
government to follow through on earlier statements and seek a
complete review in Brussels of the way in which the levy is
collected, the spokesman said.
    Het Comite, as a member of FEFAC, the association of
European animal feed manufacturers, is also a party to actions
protesting the whole levy in the Luxembourg appeal court.


.I 15430
.C
earn
.W
Z-SEVEN FUND SEES HIGHER 1987 NET.
    NEW YORK, March 26 - <Z-Seven Fund Inc> said it expects to
earn six dlrs a share in 1987, up from 4.20 dlrs a share in
1986.
    The company said the 1986 net earnings were up 30 pct from
3.22 dlrs in 1985. Net asset value in 1986 rose 35 pct to 16.09
dlrs a share from 11.89 a year earlier, adjusted for a
three-for-two stock split.


.I 15433
.C
gas
.W
SPANISH REFINER PLANS GASOLINE ADDITIVE PLANT.
    MADRID, March 26 - Spain's state refiner Empresa Nacional
de Petroleo S.A. (EMP) plans to build its second unit for
production of methyl tertiary butyl ether (MTBE), a gasoline
additive replacing lead, company sources said.
    The Coruna-based plant, with an annual capacity of 27,000
tonnes, and a 55,000-tonnes-per-year facility that EMP will
start up in Tarragona next year, will make the state refiner
Spain's biggest producer of MTBE.
    Petroleos del Norte S.A. (Petronor) runs a 45,000 tonne a
year plant in Bilbao and Cia Espanola de Petroleos S.A. (Cepsa)
plans to put a similar unit onstream next year in Algeciras.


.I 15434
.C
acq;crude;
.W
WALL STREET STOCKS/U.S. OIL COMPANIES.
    NEW YORK, March 26 - British Petroleum Co PLC's
announcement that its U.S. subsidiary intends to tender for the
45 pct of Standard Oil Co <SRD> it does not already own,
catapulted U.S. oil stocks sharply higher this morning, traders
and analysts said.
    "It raises the specter of additional consolidation in the
industry and that is what is boosting the other oils," analyst
Rosario Ilacqua of L.F. Rothschild said.
    Sanford Margoshes of Shearson Lehman Brothers said "this
deal shows that British Petroleum, a conservative investor that
knows the oil business, is clearly confident in the U.S. oil
industry, and that shines well on the U.S. companies."
 More

.I 15435
.C
earn
.W
ROY F. WESTON INC <WSTNA> 4TH QTR NET.
    WEST CHESTER, Pa., March 26 -
    Shr 15 cts vs 11 cts
    Net 900,334 vs 482,705
    Revs 28.7 mln vs 18.8 mln
    Avg shrs 6,195,527 vs 4,551,105
    Shr 51 cts vs 31 cts
    Net 2,713,912 vs 1,402,696
    Revs 98.7 mln vs 67.9 mln
    Avg shrs 5,369,833 vs 4,551,105
    NOTE: Share adjusted for three-for-two stock split
effecitive March 2, 1987.
    Weston said earnings for the firstg quarter will be about
flat due to the recent substantial addition of management and
technical staff and an expansion in the Southeastern and
Northwestern U.S.
    The company said full-year earnings and revenues are
expected to be higher.  The company today reported 1986
earnings of 2,713,912 dlrs, up from 1,402,696 dlrs in 1985, and
revenues of 98.7 mln dlrs, up from 67.9 mln dlrs.
    Weston earned 492,000 dlrs in last year's first quarter.


.I 15436
.C
gas
.W
MOBIL <MOB> TO UPGRADE REFINERY UNIT.
    NEW YORK, March 26 - Mobil Corp said it will spend over 30
mln dlrs to upgrade a gasoline-producing unit at its Beaumont,
Texas, refinery.
    It said the unit is a catalytic reformer, which converts
low-octane components of gasoline into high-octane components
for use in Super Unleaded gasoline.
    The company said the modernization will allow the unit to
regenerate catalysts on a continuous basis without shutdown.
Currently, it must be shut twice a year.  The unit produces
46,000 barrels of gasoline components a year.  Construction
will start late this year, with completion set for mid-1989.


.I 15439
.C
acq
.W
BLOCKBUSTER <BBEC> TO ACQUIRE LICENSEE.
    DALLAS, March 26 - Blockbuster Entertainment Corp said it
agreed to buy <Southern Video>, a Blockbuster licensee in San
Antonio.
    Blockbuster said it will issue 80,460 shares of its common
stock for all the net assets of Southern Video.
    The company said after the acquisition is complete, it
intends to open additional Blockbuster Video Superstores in the
San Antonio market.


.I 15440
.C
oilseed;soybean;
.W
BRAZIL SOY HARVEST 13 PCT COMPLETE - NEWSLETTER.
    ****SAO PAULO, March 26 - Brazil's soybean harvest was 13
pct complete by March 20, the Safras e Mercado newsletter said.
    This compares with an historic average for this time of
year of 20 pct.
    The newsletter gave the following figures for the progress
of the harvest in the main producer states:
    Parana: 40 pct
    Mato Grosso do Sul: 15 pct
    Mato Grosso: five pct
    Rio Grande do Sul: two pct


.I 15441
.C
acq
.W
CONTEL <CTC> TO BUY WALKER COUNTY TELEPHONE.
    ATLANTA, March 26 - Contel Corp said it has agreed in
principle to acquire <Walker County Telephone Co> of LaFayette,
Ga., for an undisclosed amount of common stock.
    Walker has 7,600 customers in northeast Georgia.
    The company said the agreement is subject to approval by
regulatory agencies, both boards and Walker shareholders.


.I 15444
.C
money-fx
.W
MULFORD SAYS G-6 WANTS STABILITY.
    WASHINGTON, March 26 - Treasury Assistant Secretary David
Mulford said the Paris agreement among leading industrial
nations is intended to produce "reasonable stability" in exchange
markets over the next few months.
    He told a Senate Banking subcommittee the Group of Five
nations and Canada agreed in Paris to "see if there can't be a
period of reasonable stability instead of volatility" to give
time for the committments in Paris to take place.
    Asked by Sen Phil Gramm (R-Tex) whether U.S. intervention
was not in fact overvaluing the dollar, Mulford replied that
the administration judged that after economic adjustments,
current exchange rates reflect underlying economic
fundamentals.
    In particular, the stability sought by the nations would
allow West Germany and Japan to stimulate their economies
domestically and the U.S. to cut its budget deficit, Mulford
said in his testimony.
    He stressed that a further sharp fall in the dollar would
hurt the ability of Germany and Japan to boost growth.
    Mulford noted that half of West Germany's economy was
affected by international developments.
    He also said increased Japanese domestic growth would
result in more U.S. exports to Japan and would not necessarily
lead to greater Japanese capital flows to the U.S., as Gramm
asserted, if Japan reformed its domestic capital market.
    Commenting on the Paris agreement, Mulford said, "I think
exchange rates ought to be stabilized so (Germany's and
Japan's) efforts can be carried out.
    Mulford rejected Gramm's argument that faster domestic
growth in Germany and Japan would result in an even lower
dollar.
    Mulford said the administration wanted to achieve a pattern
of higher growth overseas as a way of improving the U.S. trade
deficit.
    Otherwise, he said, the trade deficit would be resolved
either through a much lower dollar or a U.S. recession, both
alternatives he termed unacceptable and undesirable.


.I 15446
.C
acq
.W
THERMO PROCESS <TPSI> COMPLETES ACQUSITION.
    WALTHAM, Mass, March 26 - Thermo Process Systems Inc said
it completed its purchase of Thermo Process Services Inc, a
subsidiary of Thermo Electron Corp <TMO>.
    Thermo Process Systems said it issued 2,590,000 shares of
its common stock to Thermo Electron in connection with the
sale.


.I 15447
.C
acq
.W
SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.
    MUNICH, West Germany, March 26 - Siemens AG's <SIEG.F>
fully-owned subsidiary Siemens Informations Systems Inc. Has
raised its stake in Telecom Plus Communications Inc. By 65 pct
to 100 pct, a Siemens spokesman said.
    He added that Telecom Plus Communications was the largest
independent supplier of telephone exchange systems in the U.S.
And had achieved a turnover of 234 mln dlrs in 1986.
   The stake had been acquired from Telecom Plus International
Inc. The spokesman declined to comment on U.S. Newspaper
reports that the purchase price of the remaining stake totalled
173 mln dlrs.


.I 15448
.C
earn
.W
FRUEHAUF POSTS 20.3 MLN DLR 1986 LOSS.
    DETROIT, March 26 - Fruehauf Corp, which went private in
December through a leveraged buyout, said the predecessor
company had a 1986 loss of 60.9 mln dlrs compared to earnings
of 70.5 mln dlrs in 1985.
    Sales of the predecessor company were 2.68 billion dlrs
compared to 2.56 billion dlrs in 1985, including the sales by
the operations which are divestiture candidates.
    Fruehauf said in connection with the buyout acquisition,
the predecessor company incurred about 97 mln dlrs in expenses
charged against 1986 operations.
    In addition to the direct expenses, Fruehauf said operating
results were adversely affected by an unquantifiable amount due
to the disruption related to a proxy contest and attempted
hostile takeover which started in early 1986.
    Fruehauf said its board rescheduled the annual meeting to
June 18 from May 7 to allow for completion and distribution of
the 1986 results to shareholders.


.I 15449
.C
acq
.W
MICHIGAN GENERAL <MGL> TO SELL KRESTMARK UNIT.
    SADDLE BROOK, N.J., March 26 - Michigan General Corp said
it agreed to sell substantially all of the assets and certain
liabilities of its Krestmark subsidiaries to LCB Holdings Inc
for 6.5 mln dlrs cash.
    Sale of Texas-based Krestmark, a maker of doors, door
frames and other products, will allow Michigan General to
concentrate on retailing through its Diamond Lumber and
Savannah Wholesale units.
    Proceeds of the sale will be used to reduce debt. The deal
is subject to execution of a definitive agreement.
    Krestmark had revenues of about 40 mln dlrs and operating
losses of three mln dlrs in 1986, the company said. It has been
accounted for as a discontinued operation since last September.
    Dallas-based LCB is a privately-held maker of structural
steel joists and rack and storage handling systems.
    Michigan General also said its Diamond Lumber homebuilding
products retail unit closed nine unprofitable stores in the
first quarter and reduced its headquarters staff by 10 pct. The
nine closed stores, which had pretax operating losses of 1.7
mln dlrs in 1986, are being sold to provide cash for
operations.
    About 4.5 mln dlrs of inventory from the stores is being
transferred to other locations, the company said.


.I 15450
.C
acq
.W
RABBIT SOFTWARE <RABT> TO MERGE WITH CTI DATA.
    MALVERN, Penn., March 26 - Rabbit Software Corp said it
agreed in principle to merge with <CTI Data Inc>, a privately
owned communications company.
    According to terms, CTI holders and employees will receive
200,000 shares of Rabbit stock and royalties on sales of CTI
Products. CTI will become a wholly owned subsidiary of Rabbit.
    The deal is subject to completion of a definitive merger
agreement, receipt of third party approvals and other
conditions, the company said.


.I 15451
.C
earn
.W
COMSTOCK GROUP INC <CSTK> 4TH QTR LOSS.
    DANBURY, Conn., March 26 -
    Shr loss 60 cts vs loss 43 cts
    Net loss 3,012,000 vs loss 2,114,000
    Revs 102.8 mln vs 134.9 mln
    Year
    Shr loss 1.48 dlr vs loss four cts
    Net loss 7,338,000 vs loss 180,000
    Revs 354.9 mln vs 469.2 mln
    NOTE: 1986 4th qtr and year net includes a loss of 623,000
dlrs and a gain 1,910,000 dlrs or 39 cts per share for an
extraordinary item.



.I 15454
.C
veg-oil
.W
U.S. SENATE HITS EC OILS TAX, VOWS RETALIATION.
    WASHINGTON, March 26 - The Senate voted to condemn the
proposed European common market tax on vegetable and marine
fats and oils and said it would result in retaliation.
    The non-binding Senate resolution, a sense of Senate
sentiment, was approved on a 99 to 0 vote.
    "The administration should communicate to the European
Community the message that the United States will view the
establishment of such a tax as inconsistent with the European
Community's obligations under the General Agreement on Tariffs
and Trade that will result in the adoption of strong and
immediate countermeasures," the resolution stated.
    The resolution said the European Community Commission has
proposed establishing a consumption tax on vegetable and fish
oils and fats in conjunction with the setting of farm prices
for the 1987/1988 EC marketing year.
    The Senate said the tax would amount to almost 90 pct of
the current price of soyoil and "have a restrictive effect" on
U.S. exports of soybeans and vegetable oils to the EC.
    It would be "blatantly inconsistent" with obligations of the
EC under the General Agreement on Tariffs and Trade, GATT, the
resolution said, and "constitute another egregious attempt" to
impose EC agricultural costs on trading partners.


.I 15455
.C
earn
.W
******HEALTHMATE INC SAYS AUDITORS INTEND TO QUALIFY ITS FINANCIAL STATEMENTS.
Blah blah blah.

.I 15457
.C
earn
.W
HARSCO CORP <HSC> SETS QUARTERLY.
    HARRISBURG, Pa., March 26 -
    Qtly div 25 cts vs 25 cts prior
    Pay May 15
    Record April 15


.I 15458
.C
earn
.W
MILASTAR CORP <MILA> 3RD QTR JAN 31 LOSS.
    PALM BEACH, Fla., March 26 -
    Shr loss two cts vs loss four cts
    Net loss 44,000 vs loss 85,000
    Sales 370,000 vs 299,000
    Nine mths
    Shr loss seven cts vs loss three cts
    Net loss 134,000 vs loss 56,000
    Sales 1,211,000 vs 1,069,000
    NOTE: Prior nine mths net includes 10,000 dlr loss on sale
of marketable securities.
    Prior quarter net includes 1,000 dlr tax credit.
    Current year net includes provisions for loss on investment
in preferred stock of 4,000 dlrs in quarter and 15,000 dlrs in
nine mths.


.I 15460
.C
earn
.W
******BANK OF BOSTON EXPECTS 1ST QTR EARNINGS FROM 90 CTS TO 1.00 DLRS/SHR VS 79 CTS.
Blah blah blah.

.I 15461
.C
earn
.W
BANK OF BOSTON <BKB> SEES IMPROVED 1ST QUARTER.
    BOSTON, March 26 - Bank of Boston Corp expects first
quarter earnings will range between 90 cts and one dlr a share,
up from 79 cts a share last year, Chairman William Brown said.
    He told shareholders the company has a 190 mln dlr exposure
in loans to Brazil if that country defaults on its debt
payments. If a default does occur, it would first quarter
earnings by about five cts a share, which would bring the
bank's in the lower level of the estimated range, he added.
    Brown noted the 1986 first quarter net included a 17 cts
gain from loan restructurings which will not appear this year.
    Brown said the bank's other nonperforming assets, not
including its Brazilian exposure, could rise to over 700 mln
dlrs at the end of this quarter compared with 669 mln dlrs a
year earlier and 614 mln dlrs at the end of 1986.
    He said the increase includes all of its Equadorian loans
which he expects will be ultimately repaid after the company
recovers from an earthquake earlier this year.
    Brown said the increase also includes some Mexican and
Venezuelan loans as those nations are also facing credit
problems.
    Brown said the Bank of Boston remains "cautiously optimitic
about the full year even if our Brazilian exposure were to be
on nonaccural all year." In 1986, the bank earned 3.69 dlrs a
share, or 232.8 mln dlrs on net interest revenues of 1.08
billion dlrs.
    President Ira Stepanian told the shareholders's meeting the
bank's total loans to Argentina, Brazil and Mexico totaled 875
mln dlrs at the end of 1986, 37 pct of its primary capital.
Brazil loans total 300 mln dlrs, of which about two-thirds are
affected by its suspension of interest payments on its medium
and long term foreign debt.


.I 15462
.C
sugar
.W
LIBYA REPORTEDLY BOUGHT WHITE SUGAR.
    ****LONDON, March 26 - Libya is reported to have recently
bought two cargoes of white sugar from operators at around
229/230 dlrs a tonne cost and freight, traders said.
    The shipment period required was not specified.


.I 15463
.C
acq
.W
******USAIR GETS APPROVAL TO BUY 9,309,394 PIEDMONT SHARES IN TENDER.
Blah blah blah.

.I 15464
.C
interest
.W
FED EXPECTED TO ADD RESERVES.
    NEW YORK, March 26 - The Federal Reserve is expected to
enter the U.S. government securities market to add reserves
during its usual intervention period today, economists said.
    With federal funds trading at a steady 6-3/16 pct, most
economists expect an indirect injection of temporary reserves
via a medium-sized round of customer repurchase agreements.
    However, some economists said the Fed may arrange more
aggressive system repurchase agreements.
    Economists would also not rule out an outright bill pass
early this afternoon. Such action had been widely anticipated
yesterday but failed to materialize.


.I 15467
.C
acq;crude;
.W
WALL STREET STOCKS/U.S. OIL COMPANIES.
    NEW YORK, March 26 - British Petroleum Co PLC's
announcement that its U.S. subsidiary intends to tender for the
45 pct of Standard Oil Co <SRD> it does not already own,
catapulted U.S. oil stocks sharply higher this morning, traders
and analysts said.
    "It raises the specter of additional consolidation in the
industry and that is what is boosting the other oils," analyst
Rosario Ilacqua of L.F. Rothschild said.
    Sanford Margoshes of Shearson Lehman Brothers said "this
deal shows that British Petroleum, a conservative investor that
knows the oil business, is clearly confident in the U.S. oil
industry, and that shines well on the U.S. companies."
    Philips Petroleum <P> gained 3/4 to 15-7/8, Occidental
Petroleum <OXY> one to 34-5/8, USX Corp <X>, with its Marathon
Oil Co unit, rose 1/2 to 28-3/8. Exxon <XON> climbed one to
88-3/8, Mobil <MOB> one to 50-1/4, Atlantic Richfield <ARC>
3-1/8 to 80-1/2, Amoco <AN> 1-7/8 to 84-1/8, and Amerada Hess
one to 33-5/8. BP gained 2-3/8 to 59-3/4.
    Both analysts said the rise in Standard's price this
morning to above the proposed tender price of 70 dlrs a share,
is an indication that investors expect the bid to be sweetened.
Standard gained 6-3/4 to 71-5/8.
    The analysts cited Royal Dutch/Shell Group's <RD> <SC> bid
for Shell Oil Co, which was sweetened before its successful
conclusion.
    Margoshes said the BP action "is an articulation of the
underlying value of oil companies in the marketplace." But he
expressed skepticism that this will necessarily lead to
heightened merger or buyout activity in the oil group.


.I 15472
.C
earn
.W
NORCEN SEES IMPROVEMENT IN 1987 EARNINGS.
    CALGARY, Alberta, March 26 - <Norcen Energy Resources Ltd>,
41 pct owned by <Hees International Corp>, said earnings and
cash flow will improve in 1987, even if oil and gas prices
remain at 1986 levels.
    The improvement will result from production increases,
lower taxes and royalties, reduced financing costs and from
operating efficiencies and downsizing put into place during
1986, the company said in the annual report.
    Norcen previously reported 1986 earnings, excluding a 20.1
mln dlr writeoff, declined by 58 pct to 50.0 mln dlrs from
119.7 mln dlrs in in 1985.
    Norcen's 1986 cash flow fell 10 pct to 204.9 mln dlrs from
228.9 mln dlrs in the prior year.
    It said the sharp decline in oil prices during 1986 was the
most significant factor for Norcen's reduced performance.
    "While financial results are far from the previous year's
record levels, it is clear that Norcen has withstood declining
prices and remains financially and operationally strong," Norcen
said. It did not give a specific 1987 profit forecast.
    The company said it is well positioned to capitalize on
profitable opportunities in its core business areas, and will
continue to invest to increase revenue and asset values.


.I 15473
.C
acq
.W
SIEMENS REBUTTS U.S. CRITICISM ON CGCT OFFER.
    MUNICH, March 26 - Siemens AG <SIEG.F> rebutted U.S.
Criticism it is blocking American Telephone and Telegraph
Corp's <T.N>, AT and T, entry into French telecommunications
firm <Compagnie Generale Constructions Telephoniques>, CGCT.
    Management board member Hans Baur told journalists that the
acquisition of a joint 20 pct stake in CGCT by AT and T and
Philips Gloeilampenfabrieken NV <PGLO.AS> had not been decided
on two years ago as claimed by AT and T.
    The French government, which owns CGCT, had asked Siemens
at the start of 1986 to submit an offer for the stake in CGCT.
The result of the negotiations was still open.
    Baur said Siemens had first made an offer last summer.
    The Handelsblatt newspaper today quoted AT and T chairman
James E. Olson as saying that Siemens' attempt to stop AT and T
and Philips could lead to a resurgence of protectionism in the
U.S.
    Baur said he expected the French government to decide on
the winning bid by the end of April. CGCT's share of the French
switchboard market amounts to around 16 pct.
    The French government has limited CGCT participation by
foreign companies to 20 pct and set a price of 500 mln francs
for the whole company.
    Bauer said the 20 pct limitation would only apply to the
initial stake. He did not rule out a stake increase later but
said Siemens' aim was to introduce its technology.
    Bauer said Siemens and French telecommunications firm
<Jeumont-Schneider SA> submitted a joint offer at the start of
March because of the 20 pct limitation. Both companies will
form a joint venture to take over the whole of CGCT.
   Siemens will have a 20 pct stake in the new company while
Jeumont-Schneider will own 80 pct. Apart from investing 100 mln
francs for the modernisation of CGCT, a new research centre
with was also being planned.


.I 15474
.C
money-fx
.W
******MULFORD DISAPPOINTED IN NEWLY INDUSTRIALIZED (NICS) EFFORTS TO STRENGTHEN CURRENCIES.
Blah blah blah.

.I 15475
.C
earn
.W
FORD <F> NEARS GM <GM> IN EXECUTIVE BONUSES.
    DETROIT, March 26 - Ford Motor Co neared General Motors
Corp last year in executive bonuses, while it topped the larger
automaker in profit sharing payments to workers.
    Ford, which outstripped GM in earnings last year, said its
1986 incentive bonuses totaled 167 mln dlrs, slightly behind
General Motors' 169.1 mln.
    General Motors, however, did not make any profit-sharing
payments to its workers, while Ford made a profit-sharing
distribution of 372 mln dlrs, or 2,100 dlrs per worker.
    General Motors, which saw its earnings drop to 2.94 billion
dlrs from 1985's 3.99 billion, said the 1986 profit was "not
sufficient to generate a payout under the profit-sharing
formula."
    Ford, which earned 3.28 billion dlrs in 1986, up from 2.51
billion in 1985, said it "recognizes employees' efforts and
fulfills its commitment to them in many ways, including
profit-sharing."


.I 15476
.C
money-fx;trade;
.W
MULFORD SAYS GERMANY, JAPAN SHOULD DO MORE.
    WASHINGTON, March 26 - Treasury Assistant Secretary David
Mulford said he did not believe that West Germany and Japan
have yet carried out their international responsibilities.
    "I do not believe they have up to this time," Mulford told
a Senate banking subcommittee.
    He said that for the U.S. trade deficit to continue
improving in the next two years, "We need more policy actions"
across the entire front of U.S. trade relations, including
Canada and the newly-industrialized countries (NICS).
    In particular, he said, efforts by South Korea and Taiwan
to strengthen their currencies were still disappointing.
    Mulford also said that OECD nations need to grow an average
three pct to help resolve the international debt crisis.
    He noted that Japanese and European imports from Latin
nations were significantly smaller than imports into the U.S.
    He stressed both Germany and Japan must continue to take
economic and structural measures to ensure stronger sustained
economic growth.


.I 15477
.C
grain;barley;corn;
.W
******EC GRANTS EXPORT LICENCES 197,000 TONNES  FREE MARKET MAIZE, ZERO BARLEY - PARIS TRADERS.
Blah blah blah.

.I 15478
.C
earn
.W
PIER 1 IMPORTS <PIR> DECLARES STOCK SPLIT.
    FORT WORTH, Tex., March 26 - Pier 1 Imports Inc said its
board declared a three-for-two split of its common stock and
its 25 cents preferred stock, and declared a regular quarterly
dividend of two cents per share on the pre-split shares of
common stock outstanding.
    Pier 1 also declared a 12.5 pct annual dividend increase
for the post-split common shares. The split will be effected in
the form of a 50 pct stock dividend on both classes.
    The company said shareholder approval is required for an
increase in authorized shares of common stock to 100 mln from
25 mln.
    It said approval is also needed for an increase in
authorized shares of preferred stock from one million to five
million. It said voting will be conducted at its annual
shareholder meeting on June 24.
    Pier 1 said there are currently 19.1 million shares of
common stock and 960,000 shares of 25 cts preferred stock
outstanding.
    The split shares will be distributed on June 29 to
shareholders of record May 13. The two cts per share quarterly
cash dividend will be payable May 29 to shareholders of record
May 13.
    "The increase in shares outstanding will broaden the base
of stock ownership in the company, and the dividend increase
reflects the directors' positive outlook for the future
prospects of Pier 1 Imports," said Clark Johnson, president and
chief executive officer.


.I 15480
.C
earn
.W
LANCER CORP <LACR> 4TH QTR NET.
    SAN ANTONIO, Texas, March 26 -
    Shr 12 cts vs 15 cts
    Net 282,000 vs 360,000
    Revs 5,261,000 vs 5,348,000
    Avg shrs 2,336,000 vs 2,335,000
    Year
    Shr 91 cts vs 1.04 dlrs
    Net 2,149,000 vs 2,075,000
    Revs 28.2 mln vs 28.3 mln
    Avg shrs 2,356,000 vs 2,001,000
    NOTE: 1986 quarter net includes 72,000 dlr charge from
repal of investment tax credit.


.I 15482
.C
earn
.W
MACNEAL-SCHWENDLER CORP <MNS> 4TH QTR JAN 31 NET.
    LOS ANGELES, March 26 -
    Shr 16 cts vs 11 cts
    Net 1,888,000 vs 1,307,000
    Revs 7,365,000 vs 5,877,000
    Year
    Oper shr 58 cts vs 40 cts
    Oper net 7,005,000 vs 4,866,000
    Revs 27.1 mln vs 21.1 mln
    NOTE: Prior year net excludes 263,000 dlr loss from
discontinued operations and 2,073,000 dlrs on disposal.
    Share adjusted for stock dividends.


.I 15483
.C
earn
.W
NICHOLS INSTITUTE <LAB> 1ST QTR FEB 28 NET.
    SAN JUAN CAPISTRANO, Calif., March 26 -
    Shr two cts vs one ct
    Net 83,000 vs 32,000
    Revs 11.2 mln vs 7,625,000


.I 15484
.C
earn
.W
FIRST MEDICAL DEVICES CORP <FMDC> YEAR LOSS.
    BELLEVUE, Wash., March 26 -
    Shr loss 97 cts
    Net loss 1,364,453
    Sales 737,971
    NOTE: Company in development stage.


.I 15486
.C
earn
.W
HEALTHMATE <HMTE> EXPECTS QUALIFIED OPINION.
    NORTHBROOK, ILL., March 26 - HealthMate Inc said its
auditors, Laventhol and Horwath, indicated they will issue a
qualified opinion on the company's financial statements.
    The company, which went public in March 1985, earlier
reported losses for the fourth quarter.
    It said the auditor's statement, known as a "subject to"
opinion, cautions that, because of continuing operating losses
and negative cash flow, it must achieve profitable operations
or acquire additional equity capital or other financing to
continue in existence.
    HealthMate reported a loss for the year of 1,512,534 dlrs,
or 17 cts a share on revenues of 1.4 mln dlrs. A year ago, it
had a loss of 1,553,592 dlrs, or 20 cts a share on revenues of
515,225 dlrs.
    It said the increased sales reflect initial shipments of
its FluoroScan Imaging Systems, low radiation X-ray imaging
devices that recently were classified by Underwriters
Laboratories Inc.


.I 15489
.C
dlr;money-fx;yen;
.W
DOLLAR/YEN INTERVENTION RESPONDS TO PRESSURE.
    By Brian Childs, Reuters
    PARIS, March 26 - The Bank of France intervened to buy
small amounts of dollars and sell yen in Paris today to
stabilise the exchange rates agreed at last month's meeting of
Finance Ministers of the Group of Five and Canada, foreign
exchange dealers said.
    But they said recent central bank intervention in the
foreign exchange markets appeared to be a limited reaction to
temporary pressures rather than a major defence operation.
    A Bank of France spokesman declined all comment but sources
close to the central bank said it had also intervened
yesterday.
    Dealers said the earlier intervention was in concert with
the Bundesbank and Bank of Japan.
    The sources said the French central bank could have been in
the market again today in two-way operations, not necessarily
on its own account, but to counter short-term pressures arising
from the end of the Japanese financial year on March 31.
    One major French bank said it bought between five and 15
mln dlrs for the central bank and sold yen at 149.28 to the
dollar.
    Another bank said it had been asked by the Bank of France
to say it was in the market, a departure from the central
bank's usual insistence on confidentiality.
    But other banks said they had seen no sign of intervention,
which they said appeared to be on a very limited scale.
    "Even if 10 banks were buying five to 15 mln dlrs, you would
still be talking of a small overall amount," said one dealer.
    Recent intervention by the Bank of Japan appeared mainly to
have been required to meet year-end window dressing demand for
yen. "This is a specific short term phenomenon rather than a
wider trend," the dealer said.
    Operators have been extremely cautious about testing the
dollar's trading ranges against the West German mark and
Japanese yen.
    These ranges were set in February's stabilisation agreement
reached here by U.S. Treasury Secretary James Baker and the
Finance Ministers of Japan, Germany, France, Britain and
Canada.
    But speculative pressures started to build again this week
after Baker was quoted on British television at the weekend as
repeating earlier statements that Washington had no target for
the dollar.
    Baker yesterday moved to defuse speculation he was talking
the dollar down, telling a Cable News Network interviewer and a
Senate committee he stood by the Paris agreement. Foreign
exchange markets had been misreading his comments, he said.


.I 15490
.C
earn
.W
HEALTHMATE INC <HMTE> 4TH QTR LOSS.
    NORTHBROOK, ILL., March 26 -
    Shr loss five cts vs loss six cts
    Net loss 473,784 vs loss 489,257
    Revs 268,797 vs 81,725
    Avg shrs 9,245,247 vs 8,035,326
    Year
    Shr loss 17 cts vs loss 20 cts
    Net 1,512,534 vs loss 1,553,592
    Revs 1,448,310 vs 515,225
    Avg shrs 8,745,132 vs 7,619,863


.I 15491
.C
acq
.W
USAIR <U> CLEARED TO BUY PIEDMONT <PIE> SHARES.
    WASHINGTON, March 26 - USAir Group Inc said the U.S.
Department of Transportation has issued an order allowing it to
purchase and hold in a voting trust the 9,309,394 Piedmont
Aviation Inc shares USAir is seeking in its current 69 dlr per
share tender offer.
    The company said the new order supersedes an order issued
by the department last Friday that would have required USAir to
sell within one week of expiration of the tender any Piedmont
shares it held in excess of 51 pct of the Piedmont stock then
outstanding.
    The company said the 9,309,394 Piedmont shares, together
with the 2,292,599 Piedmont shares already owned by USAir,
constitute about 50.1 pct of Piedmont's shares on a
fully-diluted basius but about 61.0 pct of shares currently
outstanding.
    The shares are to be held in a voting trust pending the
department's review of USAir's application to obtain control of
Piedmont.


.I 15492
.C
earn
.W
HOUSE OF FABRICS INC <HF> 4TH QTR JAN 31 NET.
    SHERMAN OAKS, Calif., March 26 -
    Shr 34 cts vs 20 cts
    Net 2,253,000 vs 1,332,000
    Sales 89.7 mln vs 85.9 mln
    Year
    Shr 94 cts vs 64 cts
    Net 6,191,000 vs 4,257,000
    Sales 316.4 mln vs 286.7 mln
    NOTE: Prior year net both periods includes 2,100,000 dlr
charge from sale of Craft Showcase stores.


.I 15493
.C
interest
.W
******FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 15494
.C
retail
.W
GERMAN RETAILERS EXPECT GOOD 1987.
    BONN, March 26 - West German retailers expect another good
year in 1987 even though they will not be able to repeat the
sharp increase in turnover they enjoyed in 1986, the General
Association of the German Retail Trade (HDE) said.
    HDE President Wolfgang Hinrichs said retailers would be
satisfied with a real turnover increase of between 2.5 pct to
three pct in 1987 after last year's steep 3.7 pct rise.
    Hinrichs said the 1986 turnover increase had brought the
first hesitant signs of improvement in earnings in the West
German retail sector.


.I 15495
.C
money-fx
.W
GERMAN WAGE ROUND SAID TO LIMIT MONETARY OPTIONS.
    By Allan Saunderson, Reuters
    FRANKFURT, March 26 - The Bundesbank's options for West
Germany monetary policy are limited for the foreseeable future
by the delicate stage of wage negotiations between unions and
employers, economists and money market dealers said.
    Call money fell in quite active trading today, dropping to
3.40/50 pct from 3.55/65 pct yesterday, and below the 3.50 pct
treasury bill rate as a difficult month-end approached.
    But dealers and economists said the Bundesbank was unlikely
to encourage lower rates in the foreseeable future largely for
fear of upsetting the current wage round.
    One money market dealer for a major foreign bank said, "I
don't think the Bundesbank wants rates to go up whatever
happens. But it also does not want them to fall. Above all it
wants to wait to see how the unions wage round goes."
    In West Germany, unions and employers prepare the ground
for triennial wage negotiations based on detailed assessments
of growth and inflation, economists said.
    Ute Geipel, economist with Citibank AG, said if the
Bundesbank became more accommodating in monetary policy,
raising fears in some quarters of a return in inflation in the
medium term, unions would be obliged to curtail wage demands.
    As a result the Bundesbank was concerned to make no move
that would interfere in the negotiating process, Geipel said.
    In the current round, the country's most powerful union,
the IG Metall representing metalworkers and engineers, is
demanding a shortening of the working week to 35 hours from the
present 38-1/2 and an accompanying five pct increase in wages.
    The engineering employers' association, Gesamtmetall, is
offering to bring in a 38-hour-week from July 1, 1988, and give
a two stage wage increase -- a 2.7 pct rise from April 1 this
year and another 1.5 pct from July 1, 1988.
    The agreement forged by IG Metall -- Europe's largest
union, with 2.5 mln members -- and the employers would set the
benchmark for settlements in other industries such as the
public sector, banks and federal post office. Negotiations
began in December and unions are hopeful they may conclude by
early April, ahead of the traditional holiday period in June.
    Though many economists said the unions' current warning
strikes and rhetoric were part of the negotiating strategy and
would not lead to a repeat of 1984's damaging seven-week
strikes, others said unions would not compromise greatly on
their positions and there could still be conflict.
    This could extend the length of time in which the
Bundesbank would keep its activity low-key, economists said.
    The money market head said the unions' humiliation by the
protracted financial problems of the Neue Heimat cooperative
housing venture would contribute to union obstinacy.
    "The unions haven't forgotten that and they will put this
squarely onto the account in the negotiations," he said.
    In addition, the newly-elected chairman of the IG Metall
union, Franz Steinkuehler, was more radical and determined than
his predecessor Hans Meyer and may be set for a longer battle
to achieve the best possible settlement for his membership.
    More than 16,000 engineering workers at 45 firms, mainly in
south Germany, held warning strikes lasting up to two hours
yesterday. Firms hit included Zahnradfabrik Passau GmbH and
aerospace group Messerschmitt-Boelkow-Blohm GmbH.
    Today, 28,000 employees from 110 companies came out in
warning strikes, a statement from IG Metall said.
    Money market dealers said that overnight call money rates
would rise in the near future in any case and did not depend on
a politically-inhibited Bundesbank.
    About eight billion marks were coming into the market
tomorrow from salary payments by the federal government.
    As a result, some banks fell back on the Bundesbank's offer
to mop up liquidity via the sale of three-day treasury bills,
anticipating still lower rates before the month-end.
    But a pension payment date by banks on behalf of customers
was due on Monday, other dealers noted. If banks were short of
liquidity until the bills matured on Tuesday, rates could soar,
perhaps to the 5.50 pct Lombard ceiling.
    Banks were well stocked up with funds, having an average
52.1 billion marks in Bundesbank minimum reserves in the first
24 days of March, well above the 50.7 billion requirement.


.I 15496
.C
acq
.W
FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY.
    TOKYO, March 26 - President Nobuo Ito of International
Telecom Japan Inc (ITJ), one of two rival firms seeking to
enter Japan's international telecommunications market, said it
will offer a stake in the company to 10 foreign firms.
      But he declined to specify what share the firms would
take, and told Reuters they would not participate in its
management.
    ITJ and International Digital Communications Planning Inc
(IDC), in which both Cable and Wireless Plc and Pacific Telesis
Group own 20 pct stakes, are set to merge into a new entity to
compete against Kokusai Denshin Denwa Co Ltd.


.I 15497
.C
acq
.W
SIEMENS RAISES STAKE IN TELECOM PLUS OF U.S.
    MUNICH, West Germany, March 26 - Siemens AG's <SIEG.F>
fully-owned subsidiary Siemens Informations Systems Inc. Has
raised its stake in <Telecom Plus Communications Inc.> by 65
pct to 100 pct, a Siemens spokesman said.
    He added that Telecom Plus Communications was the largest
independent supplier of telephone exchange systems in the U.S.
And had turnover of 234 mln dlrs in 1986.
   The stake had been acquired from Telecom Plus International
Inc. The spokesman declined to comment on U.S. Newspaper
reports that the purchase price totalled 173 mln dlrs.


.I 15498
.C
acq
.W
FIRST INTERSTATE SEEKS ACQUISITION.
    by Janie Gabbett
    LOS ANGELES, March 26 - Less than two months after First
Interstate Bancorp withdrew its bold attempt to buy BankAmerica
Corp, Chairman Joseph Pinola is still looking for a good buy,
but he is also looking at ways to avoid being bought.
    In a wide-ranging interview, Pinola said he's looking for
ways to improve profitability and capital between now and 1991,
"so as to resist any potential look at us...to maintain our
independence, if possible."
    In 1991 federal regulatory changes will allow the major
East Coast banks to buy banks in California.
    First Interstate, the fourth largest California bank, and
the nineth largest nationwide, owns 24 banks in 12 western
states and has franchise operations in four additional states.
    Bank industry sources say it is an attractive target for
large U.S. or foreign banks, looking to quickly move into the 
lucrative California market and the West Coast region.
    While declining specifics on his corporate strategy, when
asked if acquisitions will be part of the plan, Pinola replied,
"That's undoubtedly a fair statement...it would be almost naive
not to think that."
    Pinola characterized his acquisition strategy as
"opportunistic".
    He said he will look for banks in management trouble that
he can get at a bargain, then add management to restore
profitability, or for banks in states where First Interstate
already operates, then cut costs by combining resources.
    The exception, he said, would be Texas, where he said most
of the banks are already well managed, but might be purchased
at a discount because of the depressed regional economy.
    Pinola declined comment on what circumstances might move
him to rekindle his bid for BankAmerica, saying only, "We
continue to monitor and look at a lot of things and a lot of
people continue to monitor and look at us."
    Banking analysts, however, consider another First
Interstate bid at BankAmerica a long shot, not likely to happen
any time soon.
    Pinola called his decision last month to withdraw his 3.25
billion dlr bid at the nation's second largest bank, "a very,
very difficult decision."
    With that decision made, however, he acknowledged First
Interstate may now have a difficult time keeping its number
four position in the California banking community.
    "The competition in this state is tough," he said, noting
CityBank's recent purchase of 50 financial service branches
from Sears Roebuck company. "CityBank is moving rapidly to move
us down to fifth and Wells Fargo down to fourth," he said.
    Outside California, Pinola acknowledged that Security
Pacific Corp, with its recent acquisitions in Arizona,
Washington and Oregon, is quickly becoming a regional
competitor in areas where First Interstate has long dominated.
    "Security is, has been and continues to be a highly
profitable and obviously well managed company," he said.
    He added, however, First Interstate, at the moment, has the
advantages of having owned and managed regional banks longer
and has the recognition advantage of having given its regional
banks a common name.
    Pinola said while its coastal state banks are in good
financial condition, First Interstate continues to sustain
serious loan losses in its Rocky Mountain states, where energy,
real estate and agriculture dominate the economy.
    Asked if he thought loan losses in those areas had peaked,
he said, "I don't think it has bottomed out, because I think
most of the problems are real estate-related and the real
estate problems are going to be with us for several years."
    Pinola said another failing economic sector, agriculture in
the Midwest, has slowed expansion of First Interstate's
franchise operation.
    First Interstate has 42 franchise banks that offer First
Interstate financial services in ten states.
    While a year ago he was considering taking his franchise
operation east of the Mississippi River, Pinola said because
most of the franchise banks are now in the West, expansion into
the Midwest must come first.
    Calling the franchise system, "moderately profitable,"
Pinola said, "It is going to take a rejuvenation of the
agriculture sector for us to commence franchising at the speed
we were generating before the last year or two."
    On the banking industry in general, Pinola said he thinks
1987 will be another bad year for loan losses, with only banks
with minimal holdings in real estate able to improve profits.


.I 15500
.C
cocoa
.W
COCOA COUNCIL HEAD TO PRESENT BUFFER COMPROMISE.
    LONDON, March 26 - International Cocoa Organization, ICCO,
council chairman Denis Bra Kanon will present a compromise
proposal on buffer stock rules to producer and consumer
delegates either later today or tomorrow morning, delegates
said.
    Bra Kanon held private bilateral consultations with major
producers and consumers this morning to resolve outstanding
differences, mostly on the issues of how much non-member cocoa
the buffer stock can purchase and price differentials for
different varieties.
    Delegates were fairly confident the differences could be
worked out in time to reach agreement tomorrow.
    Some consuming member nations, including Britain and
Belgium, favour the buffer stock buying more than 10 pct
non-member cocoa, delegates have said.
    The consumers argue that buying cheaper, lower quality
non-member cocoas, particularly Malaysian, will most
effectively support prices because that low quality cocoa is
currently pressuring the market.
    Producers, meanwhile, say non-member cocoa should make up
at most a very small percentage of the buffer. They say
Malaysia should not be able to benefit from the ICCO unless it
is a member, and if the buffer stock bought Malaysian cocoa
Malaysia would have no incentive to join, delegates said.
    As to differentials, Ghana apparently wanted a higher
differential for its cocoa than is outlined in the most recent
proposal, so it would have a better chance of having its cocoa
bought for the buffer stock, producer delegates said.
    Some consumers wanted differentials to be adjusted in a way
that would not promote buffer stock purchases of the more
expensive cocoas, such as Ghanaian and Brazilian, they said.
    Other technical points need to be sorted out, including
limits on how much cocoa the buffer stock manager can buy in
nearby, intermediate and forward positions and the consequent
effect on prices in the various deliveries, delegates said.


.I 15502
.C
earn
.W
HOUSE OF FABRICS <HF> SEES RESULTS IMPROVING.
    SHERMAN OAKS, Calif., March 26 - House of Fabrics Inc said
it expects growth in earnings and revenues as the current
fiscal year progresses.
    It said it will open about 50 super stores this year. 
House of Fabrics now operates 703 stores.
    The company today reported earnings for the year ended
January 31 of 6,191,000 dlrs on sales of 316.4 mln dlrs, up
from prior year earnings of 4,257,000 dlrs on sales of 286.7
mln dlrs.  The prior year earnings included a 2,100,000 dlr
charge for the disposition of Craft Showcase stores.


.I 15503
.C
veg-oil
.W
U.S. SENATE HITS EC OILS TAX, VOWS RETALIATION.
    WASHINGTON, March 26 - The Senate voted to condemn the
proposed European common market tax on vegetable and fish fats
and oils and said it would result in retaliation.
    The non binding Senate resolution, a sense of Senate
sentiment, was approved on a 99 to 0 vote.
    "The administration should communciate to the European
Community the message that the United States will view the
establishment of such a tax as inconsistent with the European
Community's obligations under the General Agreement on Tariffs
and Trade that will result in the adoption of strong and
immediate countermeasures," the resolution stated.


.I 15505
.C
acq
.W
KODAK <EK> BUYS STAKE IN BIOTECHNOLOGY COMPANY.
    ROCHESTER, N.Y., March 26 - Eastman Kodak Co said it has
reached an agreement to acquire new stock representing a 16 pct
interest in industrial biotechnology company <Genencor Inc> for
undisclosed terms.
    Other Genencor shareholders include Staley Continental Inc
<STA>, Corning Glass Works <GLW> and Genentech Inc <GENE>.
    The company said it has been granted options to increase
its equity stake during 1987.  It said it has agreed to make a
multiyear, multimillion dollar commitment to Genecor research
products related to food additivies and pharmaceutical
intermediates.


.I 15506
.C
earn
.W
AVERY <AVY> 1ST QTR FEB 28 NET.
    PASADENA, Calif., March 26 -
    Shr 33 cts vs 30 cts
    Net 13.0 mln vs 11.9 mln
    Sales 330.8 mln vs 249.7 mln


.I 15509
.C
interest
.W
FED SETS TWO BILLION DLR CUSTOMER REPURCHASE.
    NEW YORK, March 26 - The Federal Reserve entered the U.S.
government securities market to arrange two billion dlrs of
customer repurchase agreements, a spokeswoman for the New York
Fed said.
    Federal funds were trading at 6-3/16 pct at the time of the
indirect injection of temporary reserves.


.I 15510
.C
grain;corn;
.W
SENATE SEEKS U.S. PROBE OF CANADIAN CORN LEVY.
    WASHINGTON, March 26 - The Senate voted unanimously to seek
an expedited U.S. probe of Canadian tariffs on corn imports to
determine if the United States should retaliate.
    By 99 to 0, the Senate went on record against the 84.9
cents per bushel tariff approved by the Canadian Import
Tribunal.
    The non binding measure asked for a probe by the U.S. Trade
Representative to determine within 30 days whether the tariff
violates the General Agreement on Tariffs and Trade, and if so
recommend within 60 days to President Reagan retaliatory action
against Canada.


.I 15513
.C
earn
.W
KNIGHT-RIDDER INC <KRN> SETS QUARTERLY.
    MIAMI, March 26 -
    Qtly div 25 cts vs 25 cts prior
    Pay April 13
    Record April Six


.I 15514
.C
earn
.W
TECHNITROL INC <TNL> SETS QUARTERLY.
    PHILADELPHIA, March 26 -
    Qtly div 12 cts vs 12 cts prior
    Pay April 21
    Record April Seven


.I 15515
.C
earn
.W
NATIONWIDE CELLULAR SERVICE INC <NCEL> 4TH QTR.
    VALLEY STREAM, N.Y., March 26 -
    Shr loss six cts vs loss 18 cts
    Net loss 89,478 vs loss 178,507
    Revs 3,894,844 vs 1,964,141
    Avg shrs 1,582,790 vs one mln
    Year
    Shr loss 43 cts vs loss 81 cts
    Net loss 534,099 vs loss 811,836
    Revs 12.2 mln vs 5,167,573
    Avg shrs 1,251,337 vs one mln


.I 15516
.C
earn
.W
<A.H.A. AUTOMOTIVE TECHNOLOGIES CORP> YEAR NET.
    BRAMPTON, Ontario, March 26 -
    Shr 43 cts vs 52 cts
    Shr diluted 41 cts vs 49 cts
    Net 1,916,000 vs 2,281,000
    Revs 32.6 mln vs 22.6 mln


.I 15521
.C
earn
.W
ROGERS <ROG> SEES 1ST QTR NET UP SIGNIFICANTLY.
    HARTFORD, Conn., March 26 - Rogers Corp said first quarter
earnings will be up significantly from earnings of 114,000 dlrs
or four cts share for the same quarter last year.
    The company said it expects revenues for the first quarter
to be "somewhat higher" than revenues of 32.9 mln dlrs posted
for the year-ago quarter.
    Rogers said it reached an agreement for the sale of its
molded switch circuit product line to a major supplier.
    The sale, terms of which were not disclosed, will be
completed early in the second quarter, Rogers said.


.I 15523
.C
earn
.W
ISLAND TELEPHONE SHARE SPLIT APPROVED.
    CHARLOTTETOWN, Prince Edward Island, March 26 - <Island
Telephone Co Ltd> said the previously announced two-for-one
common share split was approved by shareholders at the annual
meeting.


.I 15526
.C
acq;trade;
.W
U.K. GROWING IMPATIENT WITH JAPAN - THATCHER.
    LONDON, March 26 - Prime Minister Margaret Thatcher said
the U.K. Was growing more impatient with Japanese trade
barriers and warned that it would soon have new powers against
countries not offering reciprocal access to their markets.
    She told Parliament that the bid by the U.K.'s Cable and
Wireless Plc <CAWL.L> to enter the Japanese telecommunications
market was being regarded by her government as a test case.
    "I wrote to the prime minister of Japan, Mr Nakasone, on the
fourth of March to express our interest on the Cable and
Wireless bid. I have not yet had a reply. We see this as a test
on how open the Japanese market really is," Thatcher said.
    Thatcher told Parliament that "shortly ... We shall have
more powers than we have now, when, for example the powers
under the Financial Services Act and the Banking Act become
available, then we shall be able to take action in cases where
other countries do not offer the same full access to financial
services as we do."
    Cable and Wireless is seeking a stake in the proposed
Japanese telecommunications rival to Kokusai Denshin Denwa.
    But the Japanese minister for post and telecommunications
was reported as saying that he opposed Cable and Wireless
having a managerial role in the new company.


.I 15529
.C
earn
.W
QUESTECH INC <QTEC> YEAR NET.
    MCLEAN, Va., March 26 - 
    Shr loss nil vs profit 19 cts
    Net loss 3,175 vs profit 284,945
    Revs 13.6 mln vs 10.6 mln
    Year
    Shr profit 13 cts vs profit 56 cts
    Net profit 195,202 vs profit 857,006
    Revs 47.5 mln vs 42.9 mln
    Note: Current year net includes charge against discontinued
operations of 1,060,848 dlrs.


.I 15532
.C
crude;nat-gas;
.W
CANADA OIL EXPORTS RISE 20 PCT IN 1986.
    OTTAWA, March 26 - Canadian oil exports rose 20 pct in 1986
over the previous year to 33.96 mln cubic meters, while oil
imports soared 25.2 pct to 20.58 mln cubic meters, Statistics
Canada said.
    Production, meanwhile, was unchanged from the previous year
at 91.09 mln cubic feet.
    Natural gas exports plunged 19.4 pct to 21.09 billion cubic
meters, while Canadian sales slipped 4.1 pct to 48.09 billion
cubic meters.
    The federal agency said that in December oil production
fell 4.0 pct to 7.73 mln cubic meters, while exports rose 5.2
pct to 2.84 mln cubic meters and imports rose 12.3 pct to 2.1
mln cubic meters.
    Natural gas exports fell 16.3 pct in the month 2.51 billion
cubic meters and Canadian sales eased 10.2 pct to 5.25 billion
cubic meters.


.I 15535
.C
cocoa;coffee;sugar;
.W
COFFEE, SUGAR AND COCOA EXCHANGE NAMES CHAIRMAN.
    NEW YORK, March 26 - The New York Coffee, Sugar and Cocoa
Exchange (CSCE) elected former first vice chairman Gerald
Clancy to a two-year term as chairman of the board of managers,
replacing previous chairman Howard Katz.
    Katz, chairman since 1985, will remain a board member.
    Clancy currently serves on the Exchange board of managers
as chairman of its appeals, executive, pension and political
action committees.
    The CSCE also elected Charles Nastro, executive vice
president of Shearson Lehman Bros, as first vice chairman.
Anthony Maccia, vice president of Woodhouse, Drake and Carey,
was named second vice chairman, and Clifford Evans, president
of Demico Futures, was elected treasurer.


.I 15536
.C
veg-oil
.W
MOST EC STATES SAID TO BE AGAINST OILS/FATS TAX.
    BRUSSELS, March 26 - A majority of European Community (EC)
member states are either against or have strong reservations
over a tax on both imported and domestically-produced oils and
fats proposed by the European Commission, senior diplomats
said.
    They said a special committee of agricultural experts from
EC member states had voiced strong objections over the measure
during a meeting charged with preparing the ground for the
annual EC farm price-fixing which begins next Monday.
    They added that only France and Italy had indicated they
would support the Commission proposal which would lead to a tax
initially of 330 Ecus per tonne during the 1987/88 price round.


.I 15538
.C
acq
.W
GOULD<GLD> COMPLETES SALE OF FRENCH BATTERY UNIT.
    ROLLING MEADOWS, Ill., March 26 - Gould Inc said it has
completed the sale of its French battery business, Compagnie
Francaise D'Electro Chimie, to a group of investors including
the unit's employees and <GNB Inc> of Minnesota.
    Gould did not disclose terms of the deal.
    Gould said the move is part of its previously announced
plan to divest assets unrelated to its computer and electronics
businesses.


.I 15543
.C
earn
.W
SHOE TOWN INC <SHU> YEAR ENDED JAN THREE 1987.
    TOTOWA, N.J., March 26 -
    Shr 51 cts vs 75 cts
    Net 5,524,000 vs 8,094,000
    Revs 142.4 mln vs 137.2 mln
    NOTE: 1986 and 1985 year net includes loss 785,000 dlrs or
eight cts a share and 59,000 dlrs or one ct a share,
respectively, for discontinued operations.
    1985 year ended December 28, 1985.


.I 15545
.C
acq
.W
FIRST WISCONSIN <FWB> TO BUY MINNESOTA BANK.
    MILWAUKEE, Wis., March 26 - First Wisconsin Corp said it
plans to acquire Shelard Bancshares Inc for about 25 mln dlrs
in cash, its first acquisition of a Minnesota-based bank.
    First Wisconsin said Shelard is the holding company for two
banks with total assets of 168 mln dlrs.
    First Wisconsin, which had assets at yearend of 7.1 billion
dlrs, said the Shelard purchase price is about 12 times the
1986 earnings of the bank.
    It said the two Shelard banks have a total of five offices
in the Minneapolis-St. Paul area.


.I 15547
.C
earn
.W
AMERICAN NURSERY PRODUCTS <ANSY> 3RD QTR NET.
    TAHLEQUAH, OKLA., March 26 - Period ended Feb 28
    Shr profit five cts vs profit four cts
    Net profit 191,000 vs profit 108,000
    Sales 6,561,000 vs 5,896,000
    Nine mths
    Shr loss 28 cts vs loss 40 cts
    Net loss 871,000 vs loss 990,000
    Sales 9,310,000 vs 8,894,000
    Avg shrs 3,086,386 vs 2,465,996
    NOTE: Full name is American Nursery Products Inc


.I 15553
.C
earn
.W
DISCUS CORP <DISC> 4TH QTR LOSS.
    BLOOMINGTON, Minn., March 26 -
    Shr loss six cts vs loss seven cts
    Net loss 125,000 vs loss 140,000
    Rev 2.4 mln vs 2.2 mln
    Year
    Shr loss 13 cts vs loss 14 cts
    Net loss 271,000 vs loss 211,000
    Rev 10.1 mln vs 8.2 mln


.I 15556
.C
earn
.W
*****ENTERTAINMENT PUBLICATIONS SEES 31 CTS/SHR 3RD QTR LOSS ON UNITS DISPOSAL.
Blah blah blah.

.I 15558
.C
earn
.W
PAY 'N PAK STORES INC <PNP> 4TH QTR FEB 28 NET.
    KENT, Wash., March 26 -
    Shr 11 cts vs 13 cts
    Net 1,129,000 vs 1,301,000
    Revs 83.2 mln vs 74.5 mln
    Year
    Shr 57 cts vs 82 cts
    Net 5,686,000 vs 8,168,000
    Revs 398.4 mln vs 333.8 mln


.I 15559
.C
gas
.W
(CORRECTED) - MOBIL <MOB> TO UPGRADE REFINERY UNIT.
    NEW YORK, March 26 - Mobil Corp said it will spend over 30
mln dlrs to upgrade a gasoline-producing unit at its Beaumont,
Texas, refinery.
    It said the unit is a catalytic reformer, which converts
low-octane components of gasoline into high-octane components
for use in Super Unleaded gasoline.
    The company said the modernization will allow the unit to
regenerate catalysts on a continuous basis without shutdown.
Currently, it must be shut twice a year.  The unit produces
46,000 barrels of gasoline components a day.  Construction will
start late this year, with completion set for mid-1989.
    (Correcting unit's output to barrels/day from barrels/year)


.I 15561
.C
earn
.W
AMERICAN NURSERY PRODUCTS <ANSY> 3RD QTR NET.
    TAHLEQUAH, Okla., March 26 - Qtr ends Feb 28
    Shr profit five cts vs profit four cts
    Net profit 191,000 vs profit 108,000
    Revs 6,561,000 vs 5,896,000
    Avg shrs 3.6 mln vs 2.5 mln
    Nine mths
    Shr loss 28 cts vs loss 40 cts
    Net loss 871,000 vs loss 990,000
    Revs 9,310,000 vs 8,894,000
    Avg shrs 3.1 mln vs 2.5 mln
    NOTE: Full name American Nursery Products Inc.


.I 15562
.C
earn
.W
VOLVO 1986 RESULT OFF SLIGHTLY FROM 1985.
    STOCKHOLM, March 26 - AB Volvo <VOLV.ST> said the weakening
dollar caused the drop in its 1986 profits, but company chief
executive Pehr Gyllenhammar said 1986 was one of Volvo's best
years ever.
    In its final report released earlier, the company said the
group's 1986 profits before allocations and taxes was 7.53
billion crowns  compared with 1985's 7.60 billion.
    Despite the fall, Gyllenhammar said, "Sales of industrial
products have never been higher, and Volvo Cars and Volvo
Trucks were both completely sold out at year-end. Operating
income was slightly higher than a year earlier."
    He said the company's financial strength gave it
exceptional opportunities to invest for the future.
    Although industrial sales were up, the company's yearend
report said total sales were 84.09 billion crowns against
1985's 86.19 billion.


.I 15563
.C
acq
.W
<MERIDIAN ENERGY>, CASTONE END LETTER OF INTENT.
    CHICAGO, March 26 - <Meridian Energy Inc> and Castone
Development Corp, a privately-held company, jointly announced
that they have decided to terminate the letter of intent under
which Meridian would have acquired Castone.


.I 15564
.C
ship;iron-steel;
.W
REPORT EXPECTS SHARP DROP IN WORLD IRON IMPORTS.
    LONDON, March 26 - World seaborne iron ore imports will
fall sharply by the year 2000 with declining imports to the EC
and Japan only partially offset by increased demand from South
East Asia, a report by Ocean Shipping Consultants said.
    The report predicts annual world seaborne iron ore imports
of 267.7 mln tonnes by 2000 versus 312.4 mln tonnes in 1985.
    It estimates that total bulk shipping demand from the iron
ore sector will fall by almost 10 pct, or 200 billion tonne
miles, with shipping demand associated with the coking trade
down about 17 pct or 130 billion tonne miles.
    The report sees EC imports falling to 91.7 mln tonnes in
2000 from 123.6 mln in 1985 with Japanese imports falling to 89
mln from 124.6 mln tonnes. Imports to South East Asia are seen
rising to 58.6 mln from 32.6 mln tonnes in 1985.
    It predicts that EC steel production will fall to 109 mln
tonnes in 2000 from 135.7 mln in 1985 with Japanese production
falling to 92 mln from 105.3 mln.
    South Korea and Taiwan are expected to double their output
to 40 mln tonnes with Chinese production increasing by 25 mln
tonnes to 80 mln, it added.


.I 15567
.C
earn
.W
GOLDFIELD CORP <GV> 4TH QTR NET LOSS.
    MELBOURNE, Fla., March 26 -
    Shr loss four cts vs loss five cts
    Net loss 527,065 vs loss 1,204,080
    Revs 622,470 vs 613,205
    Year
    Shr profit four cts vs loss 13 cts
    Net profit 1,099,778 vs loss 3,282,478
    Revs 7,579,547 vs 6,068,254
    NOTE: 1985 excludes loss from discontinued operations of
four cts per share in the quarter and loss 10 cts in the year.
1986 year excludes extraordinary gain of two cts a share.



.I 15569
.C
money-fx
.W
BRITISH, FRENCH MINISTERS DISCUSS PUBLIC SPENDING.
    LONDON, March 26 - French Finance Minister Edouard Balladur
discussed the need to control public spending in talks here
today with British Chancellor of the Exchequer Nigel Lawson, a
Treasury spokesman said.
    The spokesman said the ministers reviewed their economies,
and public spending, domestic and European Community-wide.
    He declined to comment on whether the subject of concerted
action to shore up the dollar had arisen. The U.S. Currency
dipped sharply earlier this week after a month of relative
stability after an agreement by six major industrialised
nations in Paris on February 22 to stabilise their currencies.
REUTER

.I 15570
.C
acq
.W
FED'S HELLER URGES BROAD REFORM TO AID BANKING.
    WASHINGTON, March 26 - Federal Reserve Board Governor
Robert Heller said the banking system could be strengthened by
permitting formation of financial services holding companies
involved in areas like banking, insurance, real estate and
securities.
    In a speech prepared for delivery in New York to the Bank
and Financial Analysts' Association, Heller said, "I believe
that increased diversification along geographic and product
lines is the key to strengthening the American banking system."
    He said he supported the idea of financial services holding
companies advocated by the Association of Bank Holding
Companies in which regulation of various bank, thrift,
insurance, investment, securities and real estate subsidiaries
would be handled on functional lines.
    "Limits would be placed on the extension of credit by the
bank to the associated institutions, and all transactions would
have to be on an arms-length basis," Heller said.
    Measures would be necessary to avoid abuse of the banks'
special position by such holding companies or subsidiaries.
    Heller said he "would require the holding company to serve
as a 'source of strength' to the bank by making a commitment to
maintain the bank's capital.
    "In other words, the bank would not be allowed to fail as
long as the holding company has a positive net worth."
    Heller also said commercial enterprises should be permitted
to own a financial services holding company, again with the
provision that capital would flow to the financial enterprise
if necessary.
    Heller said the effects of these actions "would be banks
that are at least as strong as the corporations holding them" in
which customer deposits were assured while any incentive to
"loot the bank" was removed.
    Such diversification would give access to national and
international financial services to corporations across the
United States.
    Heller said that would mean "the steady decline of America's
banks in the world financial league tables would be arrested" by
permitting them to become more competitive.


.I 15571
.C
earn
.W
******FEDERATED DEPARTMENT STORES INC UPS QTLY DIV BY 10.5 PCT, SETS 2-FOR-1 STOCK SPLIT.
Blah blah blah.

.I 15573
.C
acq
.W
GOULD <GLD> SELLS FRENCH BATTERY UNIT.
    ROLLING MEADOWS, March 26 - Gould Inc said it sold its
French Battery unit, Cie Francaise d'Electro Chimie, to a group
of investors including the unit's employees and <GNB Inc> of
Minnesota.
    Terms of the sale were not disclosed. The unit had 1986
sales of 65 mln dlrs.


.I 15574
.C
earn
.W
ADVANCED GENETIC SCIENCES <AGSI> YEAR LOSS.
    OAKLAND, Calif., March 26 -
    Shr loss 30 cts vs loss 73 cts
    Net loss 3,895,267 vs loss 8,250,222
    Revs 3,237,235 vs 234,745
    Note: 4th qtr data not available


.I 15575
.C
earn
.W
FEDERATED DEPARTMENT <FDS> RAISES QTLY DIVIDEND.
    CINCINNATI, March 26 - Federated Department Stores Inc said
it raised its quarterly common stock dividend to 74 cts a
share, from 67 cts, an increase of 10.5 pct.
    The company said it also approved a two-for-one stock split
in the form of a 100 pct stock dividend.
    At the same time, Federated said it will ask shareholders
to approve an increase in the number of authorized shares to
400 mln, from 200 mln.
    Federated said the dividend is payable on a pre-split basis
on April 24 to shareholders of record April 10.
    New shares from the stock split will be distributed May 11,
it said.
   


.I 15578
.C
earn
.W
DANZAR INVESTMENT <DNZR> SETS SPECIAL DIVIDEND.
    DALLAS, March 26 - Danzar Investment Group Inc said it 
received 60 mln shares of <Commonwealth Capital Ltd> in
settlement of a debt and that it will distribute the shares to
its stockholders as a dividend.
    Danzar said the dividend will also include 18,750,000
Commonwealth shares it already holds.
    The dividend of 39.9 shares per Danzar share held will be
paid to shareholders of record April 15, the company said.


.I 15579
.C
acq
.W
FIDELITY <FNF> UNIT ACQUIRES CALIFORNIA CONCERN.
    SCOTTSDALE, Ariz., March 26 - Fidelity National Financial
Inc said its Fidelity National Title Insurance Co subsidiary
acquired the operations of Safeco Title Insurance Co in the
northern California counties of Alameda, Contra Costa and San
Mateo.
    Terms of the acquisition were not disclosed.


.I 15582
.C
earn
.W
HOME SAVINGS BANK <HMSB> SETS INITIAL DIVIDEND.
    NEW YORK, March 26 - 
    Qtly div nine cts
    Pay April 30
    Record April six


.I 15583
.C
cotton
.W
FINAL 1986 CROP U.S. COTTON GINNINGS.
    WASHINGTON, March 26 - Final 1986 crop U.S. cotton ginnings
totaled 9,438,425 running bales, vs 12,987,834 bales at the end
of the 1985 season and 12,544,866 bales at end-1984 season, the
U.S. Census Bureau said.
    The bureau said upland cotton ginnings from the final 1986
crop totaled 9,237,296 bales, vs 12,837,088 bales in 1985 and
12,418,749 bales in 1984.
    American Pima ginnings from the final 1986 crop totaled
201,129 bales, vs 150,746 bales in the 1985 crop and 126,117
bales in 1984, the bureau said.


.I 15585
.C
earn
.W
******AMERICAN BRANDS SEES RECORD FIRST QUARTER RESULTS.
Blah blah blah.

.I 15586
.C
acq
.W
******BP MANAGING DIRECTOR SAYS COMPANY DOES NOT PLAN TO HIKE 70 DLRS STANDARD OFFER     .
Blah blah blah.

.I 15587
.C
acq
.W
SECURITY <SPC>, USERS, END MERGER TALKS.
    VALLEY FORGE, Penn., March 26 - Security Pacific Corp and
<Users Inc>, a credit union data processing concern, said they
have mutually agreed to withdraw from further merger
negotiations.
    Users said that since it signed a letter of intent to merge
with Security in November, it has received a strong show of
support for continuing the credit union ownership of the
company with credit unions committing themselves to purchase
additional Users common.
    Users also said it is in the strongest financial position
in its 24-year history.


.I 15588
.C
earn
.W
ENTERTAINMENT PUBLICATIONS <EPUB> SEES LOSS.
    BIRMINGHAM, Mich., March 26 - Entertainment Publications
Inc said it expects an after-tax loss of 31 cts a share in its
third quarter from the disposal of three units it closed.
    The company said its board approved a plan to discontinue
the operations of three subsidiaries, which are primarily
involved in direct mail marketing.
    "The discontinued units were not likely to meet the growth
and profit goals of the company in the future," Entertainment
Publications said.
    The three units lost 900,000 dlrs, or 19 cts a share in the
six months ended December 31.


.I 15589
.C
earn
.W
CHRIS-CRAFT INDUSTRIES INC <CCN> REGULAR PAYOUT.
    NEW YORK, March 26 - Chris-Craft Industies Inc said it
declared a regular two pct stock dividend on both its common
stock and class B common stock, which is equal the two pct
stock dividends the company paid for the prior quarter.
    The dividends are payable on April 20 to shareholders of
record April six.


.I 15592
.C
acq
.W
DENNISON MANUFACTURING <DSN> TO SELL PAPER UNIT.
    FRAMINGHAM, Mass., March 26 - Dennison Manufacturing Co
said it has signed a letter of intent to sell its Dunn Paper Co
subsidiary to James River Corp <JR> for an undisclosed amount
of cash, resulting in a first quarter charge against earnings.
    The company saiud the loss on the sale may be partly
reduced by contingent payments over the next five years and
will in the first quarter be more than offset by the gain from
the previously-announced sale of its Hygeia Sciences Inc
shares.
    Dunn had sales last year of about 65 mln dlrs.
    In Richmond, Va., James River said closing is expected by
the end of April, subject to approval by both boards and on the
reaching of satisfactory labor agreements.


.I 15594
.C
earn;acq;
.W
PILLSBURY <PSY> FILES FOR SECOND BURGER KING MLP.
    MINNEAPOLIS, Minn., March 26 - The Pillsbury Co said it
filed a registration statement with the Securities and Exchange
Commission for the sale of limited partnership interests in a
second master limited partnership of its Burger King unit's
restaurant properties.
    Pillsbury said it expects the offering to yield 73-82 mln
dlrs, resulting in an after-tax gain of 20-23 mln dlrs.
    A spokesman for Pillsbury said the company is aiming to get
this after-tax gain in the fourth fiscal quarter ending in May.
    Pillsbury said the sale will occur as soon as practicable,
considering the business and legal contigencies.
    The company said Burger King and another Pillsbury unit,
QSV Properties, will be the master limited partnership's
general partner.
    Pillsbury said it expects the interests to be sold to
public investors and listed for trading on the New York Stock
Exchange.
    Merrill Lynch will lead the underwriting, Pillsbury said.
    Pillsbury first sold limited partnership interests in
Burger King Investors L.P. in February 1986.


.I 15595
.C
earn
.W
OLD REPUBLIC INT'L CORP <OLDR> HIKES DIVIDEND.
    CHICAGO, Ill., March 26 -
    Qtly div 20 cts vs 19-1/2 cts prior
    Pay June 20
    Record June 5


.I 15596
.C
dlr;money-fx;
.W
******FED'S HELLER SAYS DOLLAR'S CURRENT LEVEL IS APPROPRIATE.
Blah blah blah.

.I 15597
.C
earn
.W
CARSON PIRIE SCOTT AND CO <CRN> SETS DIVIDEND.
    CHICAGO, March 26 -
    Qtly div 17-1/2 cts vs 17-1/2 cts prior
    Pay June 5
    Record May 22


.I 15599
.C
acq;crude;
.W
BP <BP> DOES NOT PLAN TO HIKE STANDARD <SRD> BID.
    NEW YORK, March 26 - British Petroleum Co Plc does not
intend to raise the price of its planned 70 dlr per share offer
for the publicly held 45 pct of Standard Oil Co, BP Managing
Director David Simon said.
    "We don't seen this as any progressive bidding game," he
told reporters at a news conference. BP now owns 55 pct of
Standard's stock.
    Simon said BP had carefully considered the amount of its
planned bid and he quoted an oil analyst, whom he would not
identify, as saying BP's careful evaluation means the company
is not going to raise its offer.
    "I think that (an increase) would be totally wrong. I think
the price is very fair and it is much to early to speculate
about ligigation," he said. "Let's wait and see how the offer
runs."
    Another official declined to speculate under what
circumstances BP might raise its bid.
    The BP official said the 70 dlrs a share offer is 7.2 times
Standard's 1986 cash flow and 56 pct above an independent
evaluation of the company's assets, including the value of its
oil, natural gas liquids and natural gas reserves.
    He said the price Royal Dutch/Shell Group <RD> <SC> paid
for publicly held Shell Oil Co shares in 1985 was 5.1 times
cash flow.
    The BP official also said the 70 dlr bid is a 40 pct
premium over Standard's stock price over the past year.
    BP Group Treasurer Rodney Chase said more than half to as
much as two-third's of the 7.4 billion dlrs BP needs for its
offer will come from existing sources. The rest will be
financed by new debt.
    BP will draw in cash from its operating companies around
the world and is also arranging a five billion dlr line of
credit, he explained.
    The company's debt to equity ratio will rise 11 or 12
percentage points from the current 33 pct if the offer is
completed, Chase said. But the ratio will be back below 40 pct
within 12 months, he added.
    Chase also said 50 to 60 pct of Standard Oil's publicly
held shares are held by financial institutions.
    Simon said Standard's board was informed of the offer on
March nine and has been considering it since that time.
    He said BP does not expect any regulatory problems that
would delay completion of the acquisition. "We have informed
Washington of our intentions and we've already been an integral
part of ownership of U.S. oil reserves," he pointed out.
    Simon said there is a good chance that current world oil
prices of about 18 dlrs a barrel could be maintained, and that
the more stable market is due mostly to changes in policy in
Saudi Arabia and other OPEC members to control oil production.
    "We think there are signals that current conditions are
more favorable than they have been for sometime," Simon said.
    "We have hopes for greater stability, but we do not see
prices going much higher," he added.


.I 15600
.C
money-supply
.W
******MONEY MARKET MUTUAL FUNDS FALL 1.19 BILLION DLRS IN LATEST WEEK, ICI SAYS.
Blah blah blah.

.I 15601
.C
crude
.W
BP<BP> OFFER RAISES EXPECTATIONS FOR OIL VALUES.
    By PATTI DOMM, Reuters
    NEW YORK, March 26 - British Petroleum Plc's plan to pay
7.4 billion dlrs for less than half of Standard Oil Co has
signalled higher values in the U.S. oil patch, analysts said.
    "I think that BP's bid is a very strong affirmation and
clear signal that they have confidence in the U.S., and they
think the barrel of oil in the ground is going to go higher,"
said Sanford Margoshes of Shearson Lehman Brothers Inc.
    BP earlier today said its U.S. unit planned to tender at 70
dlrs per share for the 45 pct of Standard it does not already
own.
    "It's a 7.4 billion dlr price that (shows) OPEC has won the
war and oil prices are not going to crack," said Prescott, Ball
and Turben analyst Bruce Lazier.
    "Behind that is a huge implication for the rest of the
energy issues out there in the stock market, particularly those
that are acquisition targets," Lazier said.
    One of those mentioned by Lazier was USX Corp, an
energy-steel concern which had been courted by investor Carl
Icahn and drew the attention of Australian Robert Holmes a
Court last year. Rumors continue to swirl around its stock.
    Margoshes said he does not foresee major U.S. oil firms
falling into takeover situations for several years, with the
exception of possibly Amerada Hess Corp <AHC>. He said most of
the majors found partners in the last round of matchmaking
which ended two years ago, and others restructured to the point
that they have become unattractive.
    U.S. oil stocks rallied in response to the offer. Exxon
Corp <XON> rose 1-1/8 to 88-1/2. Chevron Corp <CHV> jumped
1-1/8 to 58-7/8, and Texaco <TX> climbed 1/4 to 37-3/4. Unocal
Corp <UCL> rose 1-3/4, while Occidental Petroleum Corp <OXY>
climbed 1-1/8 to 34-3/4. Amoco Corp <AN> rose 1-3/8 to 83-3/4.
    Standard Oil's stock was up 6-1/4 in heavy trading to
71-1/8. Earlier in the session it had been at a high of 72-1/4.
Wall Street has speculated British Petroleum may boost its
offer by several dlrs per share, but the company maintained it
would not raise the 70 dlr bid.
    British Petroleum stock rose 2-1/4 to 59-5/8.
    Analysts said the fact British Petroleum made such a bid in
the first place indicates that the British oil giant has
changed its outlook for the oil industry.
    Analysts said last year British Petroleum held one of the
more bearish positions on oil prices.
    "They said the real price of oil would stay at 15 dlrs (a
barrel) for several years, and I think they beat a hasty
retreat from that point of view," Margoshes said.
    "They are more appropriately today looking more
optimistically. I believe they are looking at 18 dlrs
(long-term)...also in their heart of hearts they believe that
will be exceeded," Margoshes said.
    The U.S. benchmark crude West Texas Intermediate was
trading today around 18.60 dlrs per barrel.
    Analysts said British Petroleum might have been able to buy
up the rest of Standard Oil for about 50 dlrs per share when
oil prices were falling last year.
    They said Standard Oil's brightest asset is its slightly
more than 50 pct ownership of the Alaskan Prudhoe Bay oil
field. Analysts also said the company has other interests in
the Alaskan North Slope.
    Analysts said the Standard investment is extremely
attractive to BP because the U.S. is the largest oil market and
has hard-to-replace reserves.
    "I think it just fits in with their long-range plans to
increase their position in the U.S. market," Dean Witter
analyst Eugene Nowak said.
    Analysts said it also raises BP's visibility ahead of the
British government's announced disposal of 31.7 pct of BP
stock. The U.K. government said it would dispose of the holding
sometime in the year beginning April one.
    After acquiring all of Standard, most of BP's reserves
would be in the U.S., but only about six pct of its stock is
held in the U.S.
    "The only way they can sell all that stock is to move it
into the United States. No other market can handle all that
stock," said L.F. rothschild analyst Rosario Ilacqua.
    In 1986, Standard Oil had net losses of 345 mln dlrs on
revenues of 10.02 billion dlrs, compared to a profit the year
earlier of 308 mln dlrs on revenues of 13.82 billion dlrs.
    


.I 15602
.C
dlr;money-fx;
.W
FED'S HELLER SAYS DOLLAR'S LEVEL IS APPROPRIATE.
    NEW YORK, March 26 - Federal Reserve Board governor Robert
Heller said that the dollar's current level is appropriate but
declined to comment on widespread market reports of concerted
central bank intervention this week.
    "The dollar is stable again... The current level is the
appropriate level," Heller told reporters after a speech to a
meeting of financial services analysts.
    He said last month's six-nation currency accord in Paris
did not include target ranges for the dollar in an "academic
way."
    Heller also said that it was too early to determine whether
the parties to the six-nation accord were taking appropriate
steps to carry out the longer-term economic adjustments agreed
to in Paris.
    "Clearly, they've not been implemented yet... No one
expects implementation within a week or two," he said.
    Earlier today, U.S. Treasury assistant secretary told a
Senate banking subcommittee that he did not believe that West
Germany and Japan have yet carried out their international
responsibilities.


.I 15604
.C
earn
.W
FALCON CABLE SYSTEMS <FAL> 4TH QTR LOSS.
    PASADENA, Calif., March 26 -
    Shr loss 3.49 dlrs vs loss 15 cts
    Net loss 10.8 mln vs loss 459,000
    Revs 4,384,000 vs 2,542,000
    Year
    Shr loss 4.41 dlrs vs loss seven cts
    Net loss 13.7 mln vs loss 218,000
    Revs 13.9 mln vs 8,864,000
    Note: net losses included extraordinary losses of 4,904,000
in 4th qtr vs 232,000 year ago and extraordinary losses for
year of 2,056,000 vs 460,000 a year ago.


.I 15606
.C
earn
.W
HOME SAVINGS BANK <HMSB> SETS INITIAL QUARTERLY.
    NEW YORK, March 26 - Home Savings Bank said its board
declared an initial quarterly dividend of nine cts per share,
payable April 30, record April Six.


.I 15607
.C
acq
.W
LOUISIANA-PACIFIC <LPX> TO SELL SAWMILL.
    PORTLAND, Ore., March 26 - Louisiana-Pacific Corp said it
plans to sell its sawmill in Lakeview, Oregon and 18,000 acres
of timberland to Ostrander Construction Co.
    The company said the transaciton shoould be finalized in
early April. Terms were not disclosed.


.I 15609
.C
acq
.W
SUBURBAN BANCORP <SUBBA> MERGER APPROVED.
    PALATINE, Ill., March 26 - Suburban Bancorp Inc said it
received approval from the Federal Reserve Board to acquire
<Valley National Bank of Aurora> for an undisclosed price.
    Suburban said it has received shareholder tenders for 100
pct of Valley National's stock.


.I 15610
.C
earn
.W
UNIVERSAL HOLDING CORP <UHCO> 4TH QTR LOSS.
    JERICHO, N.Y., March 26 - 
    Shr profit nil vs profit nine cts
    Net profit 2,000 vs profit 195,000
    Revs 2,623,000 vs 2,577,000
    Year
    Shr loss 21 cts vs profit 13 cts
    Net loss 425,000 vs profit 278,000
    Revs 15.4 mln vs 8,637,000
    Note: Net includes capital gains of 63,000 vs 211,000 for
qtr and 304,000 vs 292,000 for year. Current year net includes
charge of 716,000 from contract obligation to former chairman.


.I 15611
.C
earn
.W
FREEDOM FEDERAL <FRFE> TO RECOGNIZE GAIN.
    OAK BROOK, ILL., March 26 - Freedom Federal Savings Bank
said it will recognize in its first-quarter earnings a
previously deferred 1.5 mln dlr gain which resulted from the
sale of an apartment complex in 1983.
    It said the recognition comes as a result of repayment of a
loan which was granted when the complex was sold.


.I 15612
.C
money-fx;interest;
.W
PARIS G-6 MEET SET NO TARGETS - LEIGH-PEMBERTON.
    LONDON, March 26 - Bank of England Governor Robin
Leigh-Pemberton said the Paris pact agreed between six leading
industrialised nations set no nominal exchange rate targets.
    Leigh-Pemberton said in oral evidence to a select committee
that "we did not swap numbers - we reached an understanding" on
how to cooperate towards stabilizing currencies at around their
current levels.
    He said the accord had brought Britain into a form of joint
currency float - but one which let it still purse an
independent monetary policy. "I would concede that, since the
Louvre Accord, we are acting as if we are in something,"
Leigh-Pemberton said.
    "The Louvre and Plaza accords show there is a very effective
role for the (Group of) seven central banks to operate together"
towards stabilising exchange rates," Leigh-Pemberton said.
    He did not mention this week's intervention by central
banks to support the dollar, after markets decided to test the
accord.
     Leigh-Pemberton said that "the effectiveness of this
(cooperation) is actually larger than many of us had thought in
the pre-Plaza days" before September 1985.
    He did not indicate what exchange rate levels were broadly
sought by the six nations, and noted that "we are more effective
in our agreement if we can leave the markets guessing."
    He did not indicate what exchange rate levels were broadly
sought by the six nations, and noted that "we are more effective
in our agreement if we can leave the markets guessing."
    Leigh-Pemberton said that, in principle, the Bank of
England favoured full EMS membership for sterling, provided
such a move did not endanger U.K. Anti-inflation monetary
policy. Asked whether he wanted to see U.K. Interest rates
lower, he said "the two half point cuts (this month in banks'
base lending rates) have been appropriate up until now."
    Leigh-Pemberton said he preferred a "cautious step-by-step
approach" to reducing short term interest rates, not least
because "we have a potential problem with inflation."
    Underlying U.K. Inflation was currently around 4.0 pct, "one
of the highest" among industrialised nations, he added.
    Leigh-Pemberton said the Bank of England had not wanted
base rates to fall before the unveiling of the 1987/88 budget
on March 17, but he said pressure from financial markets for
such a move had proved irresistible. Base rates are now at 10
pct.
    Regarding sterling's relationship with oil, Leigh-Pemberton
said that the pound could be seen being undervalued overall.
    He said the current oil price of some 18 dlrs a barrel
might suggest a level of 74 on the Bank of England's sterling
index, when compared with the index's level before oil prices
dropped from around the 30 dlr level. The index, base 1975,
closed here today at 72.1, unchanged from the previous close.


.I 15613
.C
earn
.W
COMMERCE CLEARING HOUSE INC <CCLR> HIKES DIV.
    CHICAGO, March 26 -
    Qtly div 32 cts vs 30 cts prior
    Pay April 29
    Record April 10


.I 15615
.C
earn
.W
QUANTECH ELECTRONICS CORP <QANT> 3RD QTR DEC 31.
    LEVITTOWN, N.Y., March 26 -
    Shr loss 28 cts vs loss six cts
    Net loss 561,029 vs loss 114,712
    Revs 3,464,269 vs 4,083,833
    Nine mths
    Shr loss 56 cts vs loss 13 cts
    Net loss 1,104,472 vs loss 261,791
    Revs 10.5 mln vs 11.6 mln
    NOTE: Prior year net includes losses from discontinued
operations of 99,209 dlrs in quarter and 202,097 dlrs in nine
mths. 


.I 15616
.C
earn
.W
QUANTECH <QANT> NEEDS ADDITIONAL FUNDS.
    ALEVITTOWN, N.Y., March 26 - Quantech Electronics Corp said
it is investigating available means of raising additional funds
needed to finance continuing operations, but there is no
assurance that it will succeed.
    The company said it continues to experience negative cash
flow.  Today it reported a loss for the third quarter ended
December 31 of 561,029 dlrs, compared with a 114,712 dlr loss a
year before.
    Quantech said it has received waivers from Marine Midland
Banks Inc <MM> through May 26 on covenants in its loan
agreement.
    The company said Marine Midland has agreed to advance it an
additional working capital loan that will be personally
guaranteed by chairman Henry Ginsburg.  Loans from Marine
Midland are secured by substantially all company assets.
    Quantech also said Bernard Weinblatt has rsigned as
president and a director, and until a replacement is found,
Ginsberg will act as chief executive and Leonard N. Hecht,
formerly chief executive, will act as chief operating officer.


.I 15617
.C
earn
.W
PDA ENGINEERING <PDAS> HALTS SOFTWARE SHIPMENTS.
    COSTA MESA, Calif., March 26 - PDA Engineering said it has
temporarily deferred shipmetns of its PATRAN software for IBM
computers, due to a technical problem with the program.
    The company said the deferral will reduce its thrid quarter
revenues and earnings.
    PDA said it anticipates resuming shipments in the fourth
quarter.


.I 15618
.C
earn
.W
P AND F INDUSTRIES INC <PFINA> 4TH QTR NET.
    FARMINGDALE, N.Y., March 26 -
    Oper shr 16 cts vs 29 cts
    Oper net 453,924 vs 726,816
    Revs 12.0 mln vs 11.2 mln
    Avg shrs 2,695,206 vs 2,562,160
    Year
    Oper shr 50 cts vs 50 cts
    Oper net 1,365,655 vs 1,268,847
    Revs 40.1 mln vs 33.1 mln
    Avg shrs 2,695,206 vs 2,562,160
    NOTE: Net excludes tax credits of 571,000 dlrs vs 496,000
dlrs in quarter and 1,347,000 dlrs vs 1,107,000 dlrs in year.
    Share adjusted for one-for-five reverse split in October
1986.


.I 15619
.C
acq
.W
FAIR LANES <FAIR> SHAREHOLDERS APPROVE MERGER.
    BALTIMORE, March 26 - Fair Lanes Inc said its shareholders
approved the previously announced merger with Maricorp Inc, a
unit of <Northern Pacific Corp>.
    Under terms of the merger, Fair Lanes said each of its
shares of common stock will be converted into the right to
receive 1.3043 shares of <BTR Realty Inc>, which is owned by
Fair Lines.


.I 15620
.C
earn
.W
ALLIED RESEARCH ASSOCIATES INC <ARAI> YEAR NET.
    SEVERNA PARK, Md., March 26 -
    Shr 63 cts vs 64 cts
    Net 2,463,214 vs 2,509,832
    Sales 34.4 mln vs 30.6 mln
    NOTE: Backlog as of February 28 47.4 mln dlrs vs 34.9 mln
dlrs a year before.


.I 15621
.C
coffee
.W
CARDENAS SEES NO MAJOR DECISIONS AT ICO MEETING.
    BOGOTA, March 26 - Jorge Cardenas, manager of Colombia's
coffee growers' federation, said he did not believe any
important decisions would emerge from an upcoming meeting of
the International Coffee Organization (ICO).
    The ICO executive board is set to meet in London from March
31 and could decide to call a special council session by the
end of April to discuss export quotas.
    "It's going to be a routine meeting, an update of what has
been happening in the market, but it's unlikely any major
decisions are taken," Cardenas told journalists.
    Earlier this month, talks in London to re-introduce export
quotas, suspended in February 1986, ended in failure.
    Colombian finance minister Cesar Gaviria, also talking to
reporters at the end of the weekly National Coffee Committee
meeting, said the positions of Brazil and of the United States
were too far apart to allow a prompt agreement on quotas.
    Brazil's coffee chief Jorio Dauster said yesterday Brazil
would not change its coffee policies.
    Cardenas said the market situation was getting clearer
because the trade knew the projected output and stockpile
levels of producers.
    He said according to ICO statistics there was a shortfall
of nine mln (60-kg) bags on the world market between October,
the start of the coffee year, and February.


.I 15623
.C
acq
.W
CB AND T <CBTB> TO MAKE ACQUISITION.
    COLUMBUS, Ga., March 26 - CB and T Bancshares Inc said the
board of Carrolton State Bank of Carrolton, Ga., has approved a
merger into CB and T for an undisclosed amount of stock,
subject to approval by regulatory agencies and Carrolton
shareholders.
    Carrolton has 26 mln dlrs in assets.


.I 15626
.C
earn
.W
AMERICAN BRANDS <AMB> SEES HIGHER 1ST QTR NET.
    NEW YORK, March 26 - American Brands Inc said it expects
first quarter net earnings to exceed the record 118.7 mln dlrs
or 1.05 dlrs a share it earned for the year-ago quarter.
    The company also said it believes sales in the first
quarter will surpass record sales of 2.1 billion dlrs last
year.
    The company said unit sales of American Tobacco's Lucky
Strike Filter line rose 20 pct last year, which led to a gain
for he Lucky franchise.
    American Brands said it will introduce a new low-priced
brand of cigarettes called Malibu.
    The company's U.K.-based Gallaher Ltd unit had a strong
performance in 1986 and became the second-largest contributor
to operating earnings, American Brands said.


.I 15627
.C
acq;crude;
.W
USX <X> SAYS TALKS ENDED WITH BRITISH PETROLEUM.
    HOUSTON, March 26 - USX Corp chairman David Roderick said
the company had ended talks with British Petroleum Co Plc <BP>
about the possible sale of some energy assets and said USX has
no immediate restructuring plans for its oil businesses.
    "We have terminated our discussions," Roderick told Reuters
after a speech to the Petroleum Equipment Suppliers Association
here. He said USX was not conducting talks with any other
possible buyer of its energy assets.
    Earlier today, BP said it planned to offer 70 dlrs per
share for the Standard Oil Co's <SRD> publicly held stock.
    USX said in December the company had held formal
discussions with BP about the potential sale of some of its
overseas oil assets and USX had received expressions of
interest from a half dozen other oil companies.
    Roderick, in response to a question, said USX had no
immediate plans to restructure its Marathon Oil Co, or Texas
Oil and Gas Corp. He said USX also did not plan to sell any of
its 49 pct interest in the giant Yates Field in west Texas.
    "We want to maintain our production in the Yates Field
during these difficult times," Roderick added.
    In response to a question, Roderick also said he did not
know whether Australian investor Robert Holmes a Court was
accumulating USX stock. In recent days, traders have suggested
Holmes a Court was buying additional shares.
    Roderick said Carl Ichan, who terminated an eight billion
dlr hostile takeover plan for USX in January, continued to hold
a sizable interest in the company. "Mr. Ichan still apparently
has 11.4 pct. He hasn't bought any more stock or sold any,"
Roderick said. "He's a very satisfied shareholder right now. I
talk with him monthly."
    In his speech, Roderick predicted the fall in the value of
the dollar would set the stage for the U.S. to solve its trade
deficit problem which totaled 170 billion dlrs in 1986.
    "I expect by the early 1990s the U.S. will be running a net
trade surplus," Roderick said. "I think the worst is over and
we can look forward to stability and upward movement ahead."
    However, the USX chairman warned that European trading
partners may resist the turn in the U.S. trade deficit. "Some
economic discomfort must be transferred from the United States
to our friends, trading partners and allies."


.I 15628
.C
sugar
.W
NY TRADERS SAY SOVIETS MADE LARGE SUGAR PURCHASE.
    NEW YORK, March 26 - The Soviet Union bought almost 90,000
tonnes of raw sugar from international trade houses last night,
with some of the sugar changing hands at discounts to the spot
May world sugar contract, according to trade sources.
    They said Japanese trade houses sold up to three cargoes of
Thai sugar for relatively nearby delivery.
    British and European-based trade houses sold the remaining
six cargoes for shipment between April/May/July, they said.
    Traders said this week's sharp fall in world sugar prices
helped to provoke the Soviet Union into covering nearby needs.
    Yesterday, spot May sugar closed at 7.18 cents a pound.


.I 15629
.C
earn
.W
MARTIN LAWRENCE LIMITED EDITIONS <MLLE> YEAR NET.
    LOS ANGELES, March 26 -
    Shr 20 cts vs six cts
    Net 861,000 vs 266,000
    Revs 10.2 mln vs 6,036,000
    Note: 4th qtr data not given.


.I 15630
.C
earn
.W
COMMONWEALTH ENERGY SYSTEM <CES> DIVIDEND.
    CAMBRIDGE, Mass., March 26 -
    Qtly div 68 cts vs 68 cts in prior qtr
    Payable May one
    Record April 14


.I 15631
.C
earn
.W
TRANSWORLD TRUST <TWT> SETS INITIAL PAY DATE.
    NEW YORK, March 26 - Transworld Liquidating Trust said it
will distribute proceeds from the sale of Hilton International
Co to UAL Inc <UAL> to its holders on April 8.
    The deal is expected to close March 31, the day trading
ceases in the Liquidating Trust shares.
    UAL will pay 632.5 mln dlrs cash, 2,564,000 shares of UAL
common stock and 200 mln dlrs worth of UAL debentures to
Transworld, but it may substitute cash for the securities. The
initial distribution will include all the cash, stock and
debentures received in connection with the sale, the company
said.
    The shares in the Trust formerly represented shares of
Transworld Corp common stock.
    The company said the balance of cash in the Trust will be
used to satisfy all liabilities and obligations of the Trust.
After satisfaction of the payments, the company will make a
second distribution around April 29, it said.


.I 15633
.C
earn
.W
ELECTRO-SENSORS INC <ELSE> VOTES EXTRA PAYOUT.
    MINNEAPOLIS, March 26 - Electro-Sensors Inc said its board
voted an extraordinary cash dividend on its common stock of 10
cts a share payable May 15, record April 30.
    The company paid an extraordinary dividend of 10 cts in May
1986.



.I 15635
.C
earn
.W
U.S. HOME <UH> SEES BEST FIRST QTR SINCE 1983.
    HOUSTON, March 26 - U.S. Home Corp said its first quarter
ending March 31, 1987, will be its most profitable first
quarter since 1983.
    The company said in 1983, it recorded a profit of 8,600,000
dlrs for its first quarter. The three following first quarters
resulted in losses of 3,200,000 dlrs, 3,500,000 dlrs and
1,800,000 dlrs, respectively, the company said.
    U.S. Home declined to put a specific figure on what its net
earnings would be for the coming first quarter, but said it
would definitely record a profit.
    In other news, U.S. Home said its shareholders approved an
amendment to its company's certificate of incorporation
relating to the liability of the company's directors.


.I 15636
.C
earn
.W
ROCKEFELLER CENTER PROPERTIES <RCP> UPS PAYOUT.
    NEW YORK, March 26 - Rockefeller Center Properties Inc said
it raised its quarterly dividend to 45 cts from 44 cts a share.
    The dividend is payable April 27 to shareholders of record
April 7.


.I 15640
.C
earn
.W
SANDUSTRY PLASTICS INC <SPI> 4TH QTR NET.
    NEW YORK, March 26 -
    Shr seven cts vs 26 cts
    Net 200,000 vs 450,000
    Revs 7,291,000 vs 1,177,000
    12 mths
    Shr 37 cts vs 77 cts
    Net 801,000 vs 1,329,000
    Revs 26 mln vs 28.6 mln
    NOTE: 1985 year includes extraordinary gain of 10 cts per
share.


.I 15641
.C
wheat;grain;corn;
.W
CHINA SWITCHES U.S. WHEAT TO 1987/88 FROM 86/87.
    WASHINGTON, March 26 - China has switched purchases of U.S.
wheat totaling 60,000 tonnes from the 1986/87 season, which
began June 1, to 1987/88 season delivery, the U.S. Agriculture
Department said.
    The department said outstanding wheat sales to China for
the current season amount to 90,000 tonnes and sales for
delivery in the 1987/88 season amount to 910,000 tonnes.
    Total corn commitments for the 1986/87 season total
1,015,800 tonnes, the department said.


.I 15643
.C
cocoa
.W
COCOA CHAIRMAN WORKS TOWARDS BUFFER COMPROMISE.
    LONDON, MARCH 26 - International Cocoa Organization's,
ICCO, council chairman Denis Bra Kanon continued work towards a
compromise plan on how the ICCO buffer stock should buy cocoa,
consumer delegates said.
    Consumer delegates said Bra Kanon had not formally
presented the compromise plan to producers and consumers, and
it was unlikely he would do so before Friday, they said.
    There was widespread confidence a result on the outstanding
items could be reached by Friday, when the council session is
due to end, consumers said.
    Bra Kanon completed bilateral consultations with several
delegations today on the main sticking points in the draft
buffer stock rules package, they said.
    Certain delegations wanted further discussion on the amount
of non-member cocoa the buffer stock will be permitted to buy,
differentials for different origin cocoas and limits on buffer
stock purchases of nearby, and forward material, the delegates
said.
    The buffer stock working group finalized the remaining
buffer stock rules, with only minor modifications to the
original draft buffer stock package produced last week, the
delegates said.
    The ICCO council is due to elect a new executive director
when it reconvenes Friday, producer delegates said.
    Producers intend to present a single candidate for the
post, and this is most likely to be Edouard Kouame from Ivory
Coast, they said.
    Earlier, the existing executive director, Kobena Erbynn
from Ghana, was expected to re-nominated, but he is now likely
to withdraw, the delegates said.
    The executive committee is due to meet Friday at 1100 GMT,
with the council unlikely to reconvene until late Friday,
consumers said.


.I 15645
.C
grain;sugar;livestock;carcass;
.W
FRANCE WILL FIGHT EC FARM PROPOSALS - MINISTER.
    VERSAILLES, FRANCE, March 26 - French Agricultural Minister
Francois Guillaume warned that France would flatly reject
proposed reforms of the European Community, EC, cereals, sugar
and oilseeds sectors, which he said would disrupt these
markets.
    The EC Commission's proposals to shorten the intervention
period and lower monthly premiums for cereals and increase the
financial burden on the sugar producers will also result in
lower real prices for producers, he told farmers here.
    "I give you my word that France, while it will not reject
technical adjustments or serious discussion, will simply reply
in the negative to these bad reforms," Guillaume told the annual
conference of the country's major farm union, FNSEA 
(Federation Nationale des Syndicats Dexploitants Agricoles).
    Community agricultural ministers are due to meet again
Monday to try and agree a package of reforms to curb spiralling
EC output and fix farm prices for 1987/88.
    Relations between the government and farmers have become
strained in France in recent months.
    There have been sporadic but frequent demonstrations by
farmers protesting over sharp falls in meat and pork prices and
further cutbacks in Community milk output.
    But Guillaume's warning that he would reject reorganisation
of the EC cereal and sugar markets -- France being a major
producer of both crops -- won him warm applause from the
FNSEA's farmers.
    His pledge to fight the EC proposals and push for the
complete dismantling of the system of cross border taxes
designed to smooth out currency differences known as Monetary
Compensatory Amounts, MCA's, however, are unlikely to avoid
further protests by producers.
    Farm leader Raymond Lacombe said the union planned to go
ahead with a series of major protests both in France and abroad
against the EC Commission's proposals to overhaul the farm
sector.
    "The Minister's proposals back up our determination to
organise union action in the coming weeks," he told reporters,
adding that this could also act in Guillaume's favour on a
ministerial level.
    Guillaume was head of the FNSEA for many years before being
appointed farm minister last spring.
    Lacombe refused to say whether the farmers felt that
Guillaume was doing a good job as farm minister.
    There have been certain advances on cutting production
costs, reducing fiscal costs and awarding drought aid, but
there are still areas where more could be done such as on
farmers' indebtedness, he said.
    Guillaume told the conference the government will make
available 2.4 billion francs (396 mln dlrs) to help producers
reduce milk output and to encourage older farmers to retire.
    The government has already announced financial aid for the
milk sector and it was not clear how much of the package
announced today was new aid, Lacombe said.


.I 15649
.C
acq
.W
FIRST FINANCIAL <FFMC> BUYS CONFIDATA.
    ATLANTA, March 26 - First Financial Management Corp said it
acquired Confidata Corp, a unit of <North Ridge Bank>, paying
500,000 dlrs in cash and pledging a guarantee on a 500,000 dlr
Confidata note held by North Ridge.
    First Financial, which provides data processing services to
community banks and other financial institutions, said the
acquisition will expand its customer base.


.I 15650
.C
acq
.W
COMBUSTION ENGINEERING <CSP> UNIT IN BUYOUT.
    STAMFORD, Conn., March 26 - Combustion Engineering Inc said
its C-E Environmental Systems and Services Inc unit agreed in
principle to acquire <E.C. Jordan and Co>, a privately held
firm based in Portland, Me.
    Terms of the acquisition were mot disclosed.
    Combustion Engineering said C-E Environmental, which
provides environmental sciences and management services, had
1986 sales of about 24 mln dlrs.


.I 15651
.C
earn
.W
PEPCO <POM> TWO MTHS FEB 28 NET.
    WASHINGTON, D.C., March 26 -
    Shr 49 cts vs 57 cts
    Net 25.1 mln vs 28.9 mln
    Revs 202.8 mln vs 220.9 mln
    12 mths
    Shr 4.05 dlrs vs 3.66 dlrs
    Net 223.9 mln vs 186.4 mln
    Revs 1.35 billion vs 1.34 billion
    NOTE: Full name Potomac Electric Power Co
    1987 year includes extraordinary gain of 21.7 mln, or 46
cts per share, for the June 1986 sale of the company's Virginia
service territory to Virginia Power.


.I 15656
.C
gnp;jobs;
.W
ITALIAN 1986 GDP UP 2.7 PCT, UNEMPLOYMENT RISES.
    ROME, March 26 - Extracts from a report by Italy's Budget
Ministry on the country's economic development in 1986 showed
gross domestic product (GDP) 2.7 pct higher in real terms than
in 1985 but a rise in unemployment.
    GDP calculated at 1980 prices rose to 434,682 billion lire
last year from 423,064 billion in 1985. On a current prices
basis, GDP was up 11 pct, totalling 894,362 billion lire in
1986 against 805,754 billion in 1985.
     But growth was insufficient to prevent a rise in
unemployment to 11.1 pct last year from 10.3 pct in 1985, the
ministry said.
    The report said falling oil prices and the depreciation of
the dollar during 1986 had favoured oil-importing countries
such as Italy.
    These factors helped Italy cut inflation to an average 6.3
pct in 1986, down from 9.3 pct in 1985.
    They also helped a major improvement in the trade balance.
    On the basis of data recently recalculated by the national
statistics institute Istat, Italy had a trade deficit in 1986
of 3,722 billion lire, the report said. This slightly revises a
previous deficit figure of 3,717 billion issued by Istat and
compares with a negative balance of 23,085 billion for 1985.


.I 15657
.C
money-fx
.W
VOLCKER REAFFIRMS G.
-6 NEGOTIATING PROCESS
    WASHINGTON, March 26 - Federal Reserve Board Chairman Paul
Volcker urged Congress to allow the government to continue its
flexible negotiations on exchange rates through procedures such
as the recent Paris meeting of industrialized countries.
    In a letter to House Banking Committee chairman Fernand St.
Germain, Volcker said he opposed legislation to formalize
international negotiations on exchange rates and to require
Treasury Secretary James Baker to disclose plans for currency
intervention.
    Volcker's letter was written March 24 in advance of the
committee's March 25 approval of the proposed legislation.
    "The fundamental policy objectives of the United States can
best be implemented in a more flexible framework, such as
through the recent meeting in Paris of Finance Ministers and
Central Bank governors," Volcker said.
    He recommended Congress not lock the administration into
formal procedures for international exchange rate negotiations
to achieve specific exchange rate goals.
    "The achievement of a sustainable pattern of U.S.
international transactions and more stability in exchange rates
are ones with which I remain sympathetic," he said.
    The Banking Committee's bill directs the administration to
to start negotiations to reach a competitive exchange rate for
the U.S. dollar "runs the risk of build up potentially
destabilizing market expectations," Volcker said.
    A requirement that Baker disclose his intervention policy
could reduce the usefulness of intervention as a tool to deal
with exchange rate volatility, Volcker added.
    Baker has also opposed the legislation which will be
wrapped into a major trade bill for consideration in the House
in late April. The Senate will consider its version of the
trade bill in May.


.I 15660
.C
acq;grain;corn;
.W
FERRUZZI PARIS UNIT SEEN ABSORBING CPC PURCHASE.
    MILAN, March 26 - Sources close to Italy's <Gruppo
Ferruzzi> said <European Sugar (France)>, a French company
owned by Ferruzzi, would take over control of <CPC Industrial
Division>, the corn wet milling business acquired by the
Italian group earlier this week from CPC International Inc
<CPC>.
    The sources told Reuters that European Sugar, owned by
Ferruzzi subsidiary Eridania Zuccherifici Nazionali SpA
<ERDI.MI>, planned to seek a listing on the Paris bourse and
make a share offering there.
    CPC International announced Tuesday it had agreed in
principle to sell its European corn wet millng business to
Ferruzzi. The deal is worth 630 mln dlrs.


.I 15661
.C
earn
.W
DECISION INDUSTRIES <DIC> SEES 1ST QTR LOSS.
    HORSHAM, Penn., March 26 - Decision Industries Corp said it
expects to report an operating loss of 19-24 cts a share for
the first quarter ending March 31 mainly due to lower profit
margins and higher sales and marketing costs.
    In the 1st quarter of last year, when the company's quarter
ended Feb 28, 1986, it earned 957,000 dlrs or 10 cts a share on
revenues of 45 mln dlrs.
    Decision also said it entered into an agreement to sell its
International Computerized Telemarketing Inc subsidiary to an
investor group headed by the unit's senior management. Terms
were not disclosed.
    Decision also said it consolidated its Decision Development
Corp subsidiary into Decision Data Computer Corp, the unit
which designs, manufactures and sells its System/3X peripheral
products.
    It said this restructuring will adversely affect its first
quarter earnings, but it said it expects to realize a
"significant savings" in operating expenses through the
remainder of the year.


.I 15667
.C
acq
.W
LOMAK <LOMK>, STRATA <STRATA> IN MERGER PACT.
    HARTVILLE, Ohio, March 26 - Lomak Petroleum Inc and Strata
Corp, based in Columbus, Ohio, jointly said they entered into a
merger agreement for Strata to become a wholly owned subsidiary
of Lomak.
    Under the merger's terms, Strata shareholders will receive
5.7 cts per share of Strata common and warrants to buy about
.06 shares of Lomak common at 37.5 cts per share on or before
December 31, 1990, for each Strata common share.
    The merger is subject to approval by the companies' boards
and shareholders and agreement of certain Strata creditors,
among other things, said the companies.


.I 15672
.C
strategic-metal
.W
CALIFORNIA MICRO <CAMD>, GRUMMAN <GQ> SET PACT.
    MILPITAS, Calif., March 26 - California Micro Devices Corp
said it has signed an agreement with Grumman Corp's Tachonics
Corp unit to develop and product gallium arsenide
seminconductor chips.
    Under the pact, California Micro Devices will design the
chips and Tachonics will manufacture them.
    Initial products to be developed will be gate arrays with
500 to 2,500 gate complexity and radiation hardening
capabilities, the company said.


.I 15674
.C
money-supply
.W
******N.Y. BUSINESS LOANS FALL 222 MLN DLRS IN MARCH 18 WEEK, FED SAYS.
Blah blah blah.

.I 15675
.C
money-supply
.W
******U.S. COMMERCIAL PAPER RISES 35 MLN DLRS IN MARCH 18 WEEK, FED SAYS.
Blah blah blah.

.I 15676
.C
money-supply
.W
NEW YORK BUSINESS LOANS FALL 222 MLN DLRS.
    NEW YORK, March 26 - Commercial and industrial loans on the
books of the 10 major New York banks, excluding acceptances,
fell 222 mln dlrs to 64.05 billion in the week ended March 18,
the Federal Reserve Bank of New York said.
    Including acceptances, loans fell 390 mln dlrs to 64.74
billion.
    Commercial paper outstanding nationally rose 35 mln dlrs to
339.04 billion.
    National business loan data are scheduled to be released on
Friday.


.I 15677
.C
interest
.W
N.Y. BANK DISCOUNT BORROWINGS NIL IN WEEK.
    NEW YORK, March 26 - The eight major New York City banks
did not borrow from the Federal Reserve in the week ended
Wednesday March 25, a Fed spokesman said.
    It was the second half of a two-week bank statement period
that ended on Wednesday. The banks did not borrow in the first
week of the period.


.I 15679
.C
acq
.W
AMERICANTURE <AAIX> BUYS AMERICAN ADVENTURE.
    LOS ANGELES, March 26 - Americanture Inc said it has
purchased American Adventure Inc <GOAQC> for cash, the
assumption of liabilities and the issuance of American
Adventure Inc common and preferred stock to creditors,
shareholders and members.
    The acquisition was pursuant of a Chapter 11 reorganization
plan of American Adventure.
    The company said the transaction involved assets valued at
more than 83 mln dlrs.


.I 15683
.C
earn
.W
CAMPBELL SOUP CO <CPB> SETS QUARTERLY DIVIDEND.
    CAMDEN, N.J., March 26 -
    Qtly div 36 cts vs 36 cts
    Pay April 30
    Record April 7


.I 15684
.C
earn
.W
EQUITABLE RESOURCES INC <EQT> IN REGULAR PAYOUT.
    PITTSBURGH, March 26 -
    Qtly div 30 cts vs 30 cts prior
    Pay June one
    Record May eight
    NOTE: Current dividend is equivalent to previous quarterly
dividend of 45 cts per share, after giving effect to 3-for-2
stock split effective March 3, 1987.


.I 15686
.C
earn
.W
ELECTROSOUND GROUP INC <ESG>3RD QTR FEB 28 LOSS.
    HAUPPAUGE, N.Y., March 26 - 
    Oper shr loss one cts vs loss five cts
    Oper net loss 15,000 vs loss 79,000
    Revs 6,244,000 vs 8,148,000
    Avg shrs 1,912,000 vs 1,537,000
    Nine mths
    Oper shr profit 19 cts vs profit 22 cts
    Oper net profit 347,000 vs profit 341,000
    Revs 22.6 mln vs 28.5 mln
    Avg shrs 1,840,000 vs 1,537,000
   
    Note: Oper excludes tax losses of 13,000 vs 85,000 for qtr
and tax credits of 258,000 vs 235,000 for nine mths.


.I 15689
.C
acq;crude;
.W
BP <BP> MAY HAVE TO RAISE BID -  ANALYSTS.
    By STEVEN RADWELL, Reuters
    NEW YORK, March 26 - British Petroleum Co PLC may have to
raise its planned 70 dlrs a share tender offer for the publicly
traded shares of Standard Oil Co <SRD>, analysts said.
    "There's a lot of speculation here that someway or other
they would be forced to come up with another bid," said Rosario
Ilaqua of L.F. Rothschild.
    And despite BP managing director David Simon's denial today
that BP would raise the offer, the analysts said that remained
a distinct possibility.
    Analysts said they base their thinking on Royal Dutch/Shell
Group's <RD> <SC> bid to buy the outstanding stake of Shell Oil
Co in 1984 and 1985. Royal Dutch/Shell eventually raised its
initial 55 dlrs a share offer to 60 dlrs a share, after
lawsuits by minority shareholders.
    "I think they're going to have to go a little higher
eventually, just as Royal Dutch/Shell had to go a little higher
for the Shell Oil minority shares," Bruce Lazier of Prescott
Ball and Turben said. He estimated a price of 75 dlrs a share.
    Royal Dutch/Shell offered 55 dlrs a share for the 30.5 pct
of Shell Oil it did not already own in January of 1984. After
objections from minority shareholders about the price, Royal
Dutch/Shell raised its bid and began a 58 dlrs a share tender
offer in April 1984.
    But shareholders sued and a court blocked completion of the
offer. After months of wrangling over the worth of Shell Oil,
Royal Dutch/Shell agreed to another two dlrs increase.
    It ended up paying 5.67 billion dlrs for the outstanding
Shell Oil stake, a significant premium to its original bid of
about 5.2 billion dlrs.
    The analysts made their comments before Simon's remarks at
a BP press conference in New York this afternoon.
    Sanford Margoshes of Shearson Lehman Brothers Inc told
clients this morning that a sweetened offer was possible. The
analyst said the bid could be raised by two dlrs a share.
    Analysts do not expect regulatory hurdles because of the
Royal Dutch/Shell group precedent. But there may be shareholder
lawsuits for the same reason, they said.
    Goldman Sachs and Co, BP's investment advisor, advised the
Shell Oil board in 1984 and 1985.


.I 15692
.C
acq
.W
VIACOM <VIA> SETS RECORD DATE FOR MERGER VOTE.
    NEW YORK, March 26 - Viacom International Inc said it set
April 6 as the record date for shareholders entitled to vote at
a special meeting to be held to vote on the proposed merger of
Arsenal Acquiring Corp, a wholly-owned subsidiary of <Arsenal
Holdings Inc> into Viacom.
    It said the date of the special meeting has not yet been
determined.


.I 15693
.C
oilseed;wheat;grain;corn;soybean;
.W
NO GRAIN SHIPMENTS TO THE USSR -- USDA.
    WASHINGTON, March 26 - There were no shipments of U.S.
grain or soybeans to the Soviet Union in the week ended March
19, according to the U.S. Agriculture Department's latest
Export Sales report.
     The USSR has purchased 2.40 mln tonnes of U.S. corn for
delivery in the fourth year of the U.S.-USSR grain agreement.
     Total shipments in the third year of the U.S.-USSR grains
agreement, which ended September 30, amounted to 152,600 tonnes
of wheat, 6,808,100 tonnes of corn and 1,518,700 tonnes of
soybeans.


.I 15694
.C
earn
.W
COURIER <CRRC> SEES SECOND QUARTER LOSS.
    LOWELL, Mass., March 26 - Courier Corp said it expects to
report a small loss for the second fiscal quarter against a
profit of 828,000 dlrs a year ago.
    The company attributed the loss to competitive pressures
which have cut gross margins. In addition, it said it is
incurring significant expenses from management programs aimed
at reducing costs and boosting productivity.
    It said its Murray Printing Co unit has undertaken a
program of extended work hours, and salary and job cuts which
will save more than 1.5 mln dlrs annually.


.I 15695
.C
earn
.W
CONTINUING CARE ASSOCIATES <CONC> 4TH QTR NET.
    CANTON, Mass., March 26 -
    Shr four cts vs two cts
    Net 59,700 vs 27,300
    Revs 3,123,900 vs 1,911,900
    12 mths
    Shr six cts vs nine cts
    Net 94,100 vs 81,600
    Revs 9,802,000 vs 5,922,000
    NOTE: qtr 1986 and qtr prior includes tax gain 9,000 and
1,900, respectively; and year 1986 and year prior includes tax
gain 18,000 and 21,000, respectively.


.I 15696
.C
oilseed;veg-oil;wheat;grain;meal-feed;barley;corn;soybean;sorghum;soy-oil;
.W
USDA COMMENTS ON EXPORT SALES REPORT.
    WASHINGTON, March 26 - Corn sales of 2,806,300 tonnes in
the week ended March 19 were the highest level since
mid-November, 1979, the U.S. Agriculture Department said.
    The department said the USSR dominated the week's activity
with purchases of 1.4 mln tonnes (which were earlier reported
under the daily reporting system). Other large increaes were
posted for Japan and unknown destinations, it said.
    Taiwan purchased 296,300 tonnes for the 1986/87 season and
170,000 tonnes for the 1987/88 season, it said.
    Wheat sales of 317,200 tonnes for the current season and
125,000 tonnes for the 1987/88 season were down about one-third
from the preceding week and the four-week average.
    Wheat sales to China of 60,000 tonnes were switched from
1986/87 to the 1987/88 season, it noted.
    Soybean sales of 483,100 tonnes were 11 pct above the prior
week and two-thirds above the four-week average.
    Japan, the Netherlands, Mexico and Portugal were the main
buyers, the department said.
    Soybean cake and meal sales of 289,400 tonnes were
two-thirds above the previous week and the largest of the
marketing year, with Venezuela the dominant purchaser.
    Sales activity in soybean oil resulted in decreases of
4,400 tonnes, as reductions for unknown destinations more than
offset increases for Canada, the Dominican Republic and Panama,
the department said.
    Cotton sales of 57,900 running bales -- 43,800 bales for
the current year and 14,200 bales for the 1987/88 season --
were off 25 pct from the previous week and 50 pct from the
four-week average.
    Turkey, Thailand, South Korea and Canada were the major
buyers for the current season, while Thailand, Britain and
Japan were the major purchasers from the upcoming season, the
department said.
     Sorghum sales of 178,800 tonnes were two-thirds above the
prior week and 75 pct over the four-week average.
    Venezuela was the leading buyer it said.
    Sales of 41,800 tonnes of barley were 10 times the previous
week and 10 pct greater than  the four-week average. Israel,
Cyprus and Saudi Arabia were the main buyers, it said.


.I 15697
.C
money-supply
.W
******U.S. M-1 MONEY SUPPLY RISES 1.2 BILLION  DLRS IN MARCH 16 WEEK, FED SAYS.
Blah blah blah.

.I 15698
.C
money-supply
.W
******U.S. BANK DISCOUNT BORROWINGS AVERAGE 302 MLN DLRS A DAY IN MARCH 25 WEEK, FED SAYS.
Blah blah blah.

.I 15699
.C
money-supply
.W
******U.S. BANK NET FREE RESERVES 603 MLN DLRS IN TWO WEEKS TO MARCH 25, FED SAYS.
Blah blah blah.

.I 15701
.C
earn
.W
VALLEY FEDERAL <VFED> SPLITS STOCK TWO-FOR-ONE.
    VAN NUYS, Calif., March 26 - Valley Federal Savings and
Loan Association said its board declared a two-for-one stock
split for its common stock.
    The split will be effected in the form of a 100 pct stock
dividend, to be issued April 30 to stockholders of record March
31.


.I 15702
.C
earn
.W
ATCOR <ATCO> CUTS DIVIDEND.
    HARVEY, Ill., March 26 - Atcor Inc said it cut its
quarterly dividend to three cts per share from 12 cts because
of depressed earnings.
    The dividend is payable April 15 to holders of record April
6.
    It said it will continue to review the dividend on a
quarterly basis.


.I 15704
.C
money-supply
.W
U.S. M-1 MONEY SUPPLY RISES 1.2 BILLION DLR.
    NEW YORK, March 26 - U.S. M-1 money supply rose 1.2 billion
dlrs to a seasonally adjusted 740.2 billion dlrs in the March
16 week, the Federal Reserve said.
    The previous week's M-1 level was revised to 739.0 billion
dlrs from 738.7 billion, while the four-week moving average of
M-1 rose to 739.1 billion dlrs from 738.3 billion.
    Economists polled by Reuters said that M-1 would rise
anywhere from 700 mln dlrs to three billion dlrs. The average
forecast called for a 1.8 billion dlr increase.


.I 15706
.C
earn
.W
TERRANO CORP <TRNO> YEAR DEC 31 OPER NET.
    LINCOLN, NEB., March 26 -
    Oper shr profit 12 cts vs loss 1.15 dlrs
    Oper net profit 300,286 vs loss 2,855,887
    Revs 2,456,616 mln vs 2,979,206
    Avg shrs 2,527,720 vs 2,482,197
    NOTE: 1986 earnings exclude extraordinary gain from
forgiveness of debt through reorganization under Chapter 11 of
280,505 dlrs, or 11 cts a share


.I 15707
.C
earn
.W
ATCOR INC <ATCO> CUT DIVIDEND.
    HARVEY, Ill., March 26 -
    Qtly div three cts vs 12 cts prior
    Pay April 15
    Record April 6


.I 15711
.C
acq;crude;nat-gas;
.W
STANDARD OIL <SRD> SEES BOOST IN 1987 CASH FLOW.
    CLEVELAND, March 26 - Standard Oil Co expects the sale of
assets and federal tax refunds resulting from last year's loss
to add about one billion dlrs to its normal cash flows from
operations in 1987, its annual report said.
    Last year, the report noted, the cash flow from operations
dropped to 1.8 billion dlrs from 3.5 billion dlrs in 1985 and
3.2 billion dlrs in 1984 due principally to lower oil prices.
    The report, prepared before British Petroleum Co Plc <BP>
disclosed plans to seek the rest of Standard's stock, put 1987
capital spending at 1.6 billion dlrs, down from the 1.7 billion
dlrs projected in January.
    Standard's capital spending totaled 1.77 billion dlrs in
1986.
    The report showed a decline in proven oil reserves to 2.41
billion barrels at the end of 1986 from 2.65 billion barrels a
year earlier as discoveries and other additions dropped to 11.4
mln barrels last year from 23.2 mln in 1985.
    But it said gas reeserves rose to 7.31 trillion cubic feet
from 7.22 trillion at the end of 1985 despite a 30.9 mln cubic
feet downward revision in previous reserve estimates during
1986. Discoveries and other additions totaled 200.5 billion
cubic feet last year, up from 175.9 billion in 1985, it added.
    Standard said both oil and gas production increased last
year -- to 726,600 barrels per day from 719,700 barrels the
previous day and to 154.4 mln cubic feet daily from 10.1 mln in
1985.
    But the average sales price of both dropped -- to 13.83
dlrs per barrel from 26.43 dlrs for oil in 1985 and to 1.49
dlrs per thousand cubic feet from 2.18 dlrs a year earlier.
    Standard said its refined product sales also rose last
year, to 644,500 barrels per day from 604,200 barrels daily in
1985.


.I 15712
.C
money-fx
.W
FORMER HERSTATT DEALER CAN BE SUED, COURT RULES.
    KASSEL, West Germany, March 26- The former chief currency
dealer of Herstatt Bank, which collapsed in 1974 on foreign
exchange speculation in West Germany's biggest banking crash,
can stand trial for damages, a court ruled.
    The court overturned a claim by Danny Dattel that a case
for damages should not be allowed after such a long interval.
    Herstatt creditors are seeking 12.5 mln marks from Dattel,
whom they accuse of causing losses at the bank of over 500 mln
marks by manipulating forward foreign exchange contracts.
    The crash of the private Herstatt bank with losses of over
one billion marks stunned West Germany's business community,
and led to a tightening of banking regulations.
    The losses were even greater than the 480 mln marks
announced recently by Volkswagen as a result of fraud in
currency transactions.
    Ivan Herstatt, managing director of the bank when it
collapsed, was sentenced to four and a half years in prison in
1984 but appealed. Six other people associated with the bank
were jailed in 1983.
    But Dattel was freed from prosecution after he produced
medical evidence of paranoia caused by Nazi persecution during
his childhood, which might have led him to take his own life.


.I 15713
.C
crude
.W
NEXT FEW MONTHS CRUCIAL FOR OIL - HERNANDEZ.
     CARACAS, March 26 - Energy and Mines Minister Arturo
Hernandez Grisanti today told a meeting of regional oil
exporters the next few months will be critical to efforts to
achieve price recovery and stabilize the market.
     Hernandez said while OPEC and non-OPEC nations have
already made some strides in their efforts to strengthen the
market, the danger of a reversal is always present.
    "March and the next two or three months will be a really
critical period," Hernandez said. He said, "We will be able to
define a movement, either towards market stability and price
recovery or, depending on the market, a reversal."
    Earlier this week, Hernandez said Venezuela's oil price has
averaged just above 16 dlrs a barrel for the year to date. If
OPEC achieves its stated goal of an 18 dlrs a barrel average
price, he said, Venezuela's should move up to 16.50 dlrs.
    Hernandez spoke today at the opening of the fifth
ministerial meeting of the informal group of Latin American and
Caribbean oil exporters, formed in 1983.
    Ministers from member states Ecuador, Mexico,
Trinidad-Tobago and Venezuela are attending the two day
conference, while Colombia is present for the first time as an
observer.
    Hernandez defined the meeting as an informal exchange of
ideas about the oil market. However, the members will also
discuss ways to combat proposals for a tax on imported oil
currently before the U.S. Congress.
    Following the opening session, the group of ministers met
with President Jaime Lusinchi at Miraflores, the presidential
palace. The delegations to the conference are headed by
Hernandez of Venezuela, Energy Minister Javier Espinosa of
Ecuador, Energy Minister Kelvin Ramnath of Trinidad-Tobago,
Jose Luis Alcudiai, assistant energy secretary of Mexico and
Energy Minister Guilermno Perry Rubio of Colombia.


.I 15717
.C
earn
.W
HOWARD B. WOLF INC <HBW> 3RD QTR FEB 28 NET.
    DALLAS, March 26 -
    Shr two cts vs three cts
    Net 21,080 vs 35,393
    Revs 2,026,017 vs 2,476,068
    Nine mths
    Shr five cts vs six cts
    Net 48,567 vs 59,527
    Revs 6,231,242 vs 6,519,473


.I 15718
.C
earn
.W
BURR-BROWN <BBRC> SEES LOWER 1ST QTR EARNINGS.
    TUCSON, Ariz., March 26 - Burr-Brown Corp said its first
quarter 1987 results will show profits significantly below the
1,058,000 dlrs, or 11 cts per share, earned in the first
quarter last year.
    The company said the profit decline will be the result of
an increase in reserves for inventory valuation. The increase
will be to cover potential write-downs of certain inventories
or products used in compact-disc stereo systems.
    Burr-Brown said the possible write-down is being
precipitated by a shift in market demand toward higher
performance products.


.I 15721
.C
crude
.W
BRAZIL OIL OUTPUT FELL IN FEBRUARY, USAGE UP.
    RIO DE JANEIRO, March 26 - Brazilian crude oil and
liquefied natural gas production fell to an average 583,747
barrels per day in February from 596,740 in the same 1986
month, the state oil company Petrobras said.
    The drop was due to operating problems in the Campos Basin,
the country's main producing area, where output was down to
346,011 bpd from 357,420, a Petrobras statement said.
    Consumption of oil derivatives totalled 1.14 mln bpd in
February, 16.7 pct up on February last year but down from the
record 1.22 mln bpd used in October last year. Use of alcohol
fuel in February was 208,600 bpd, 42 pct above February, 1986.


.I 15722
.C
earn
.W
******MEDIA GENERAL INC UPS QTLY DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT.
Blah blah blah.

.I 15728
.C
earn
.W
******CORRECTED - MEDIA GENERAL INC UPS ANNUAL DIV TO 68 CTS/SHR FROM 64 CTS, SETS STOCK SPLIT (CORRECTS TO SHOW RAISE IN ANNUAL DIV, NOT QTLY).
Blah blah blah.

.I 15729
.C
earn
.W
CENTRAL CAPITAL PLANS THREE-FOR-TWO STOCK SPLIT.
    TORONTO, March 26 - <Central Capital Corp> said it planned
a three-for-two split of its common and class A subordinate
voting shares, subject to shareholder approval at the April 23
annual meeting.
    It said the split would raise the amount of common shares
to about 25.2 mln from 16.8 mln and subordinate voting shares
to about 23.9 mln from 15.9 mln.


.I 15730
.C
trade
.W
WHITE HOUSE UNIT DECIDES ON SEMICONDUCTORS.
    WASHINGTON, March 26 - The White House Economic Policy
Council made a recommendation to President Reagan whether to
retaliate against Japan for alleged unfair practices in
semiconductor trade, U.S. officials said.
    They would not disclose the council's recommendation, but
the officials said earlier it was likely the council would call
for retaliation and urge that curbs be imposed on Japanese
exports to the United States.
    The officials said it might be several days before Reagan
would act and his moves made public.
    The Senate last week unanimously called on Reagan to impose
penalities on Japanese exports. Retaliation was also called for
by the semiconductor industry and its chief trade union, both
hard hit by Japanese semiconductor trade.
    In a pact last summer, Japan summer agreed to stop dumping
its semiconductors at less than cost in the United States and
other nations and to open its own market to the U.S. products.
    In return, the United States agreed to hold up imposing
anti-dumping duties on Japanese semiconductor shipments.
    U.S. officials say that while Japan has stopped dumping
semiconductors on the American market, they have continued to
dump them in third countries and that the Japanese market has
remained all but closed to the U.S. semiconductors.
semiconductors on the American market, they have continued to
dump them in third countries and that the Japanese market has
remained all but closed to the U.S. semiconductors.


.I 15732
.C
earn
.W
NORTHERN INDIANA <NI> 12 MTHS FEB 28 LOSS.
    HAMMOND, IND., March 26 -
    Shr loss 66 cts vs profit 1.07 dlrs
    Net loss 20,957,000 vs profit 11,041,000
    Revs 1.54 billion vs 1.85 billion
    Avg shrs 73.2 mln vs 71.7 mln
    NOTE: 1986 net excludes charge of 94.8 mln dlrs or 1.32
dlrs a share from abandonment of Bailly nuclear plant.
    Northern Indiana Public Service Co is full name of company.


.I 15734
.C
acq
.W
CHAVIN RAISES STAKE IN MYERS (MYR).
    WASHINGTON, March 26 - Chicago real estate developer
Leonard Chavin told the Securities and Exchange Commission he
had raised his stake in the L.E. Meyers Co Group to 11 pct from
9.7 pct.
    He also said an investment banker repesenting him met with
Myers' officers, telling them of his plans for a takeover and
that he may solicit proxies for a seat on Myers' board.
    Chavin also said if he takes control of the firm, it could
result in delisting Meyers' from the New York Stock Exchange.
    He told the SEC that while he is trying to buy or acquire
the firm, he still may only hold the shares for an investment.


.I 15735
.C
gold
.W
CANAMAX, PACIFIC TRANS-OCEAN APPROVE PRODUCTION.
    TORONTO, March 26 - <Canamax Resources Inc> and <Pacific
Trans-Ocean Resources Ltd> said they conditionally approved
starting production at their jointly owned Ketza River gold
deposit in the Yukon after a study recommended the move.
    They said production was conditional on approval of a water
license and arrangement of appropriate financing. They
estimated development costs for the mine and mill would total
21.1 mln dlrs, including three mln dlrs of working capital.
    The feasibility study anticipated gold production of 49,600
ounces a year at a cost of 129 Canadian dlrs a short ton, they
said.
    Canamax and Pacific Trans-Ocean said the project would
yield a 40 pct after-tax real rate of return at a gold price of
400 U.S. dlrs an ounce.
    They said they would mine 460,000 tonnes of proven and
probable mineable reserves of oxide ore grading 0.45 ounce gold
ton at a yearly rate of 112,000 tonnes for a mine life of 4.25
years.
    Possible reserves of 75,000 tonnes grading 0.38 ounce gold
ton at the break zone would extend mine life by a year, with
considerable potential for development of further oxide ore
reserves at the deposit, they said.


.I 15736
.C
earn
.W
******CAMPBELL RED LAKE MINES LTD 4TH QTR SHR 21 CTS VS 10 CTS.
Blah blah blah.

.I 15737
.C
gold
.W
GOLD PRODUCTION TO START AT KETZA RIVER.
    TORONTO, March 26 - Canamax Resources Inc and Pacific
Trans-Ocean Resources Ltd said they conditionally approved
starting production at their jointly owned Ketza River gold
deposit in the Yukon after a study recommended the move.
    They said production was conditional on approval of a water
license and arrangement of appropriate financing. They
estimated development costs for the mine and mill would total
21.1 mln dlrs, including three mln dlrs of working capital.
    The feasibility study anticipated gold production of 49,600
ounces a year at a cost of 129 Canadian dlrs a short ton, they
said.
    Canamax and Pacific Trans-Ocean said the project would
yield a 40 pct after-tax real rate of return at a gold price of
400 U.S. dlrs an ounce.
    They said they would mine 460,000 tonnes of proven and
probable mineable reserves of oxide ore grading 0.45 ounce gold
per ton at a yearly rate of 112,000 tonnes for a mine life of
4.25 years.
    Possible reserves of 75,000 tonnes grading 0.38 ounce gold
per ton at the break zone would extend mine life by a year,
with considerable potential for development of further oxide
ore reserves at the deposit, they said.


.I 15739
.C
earn;acq;
.W
HONEYWELL <HON> DEBT RISES ON SPERRY BUYOUT.
    MINNEAPOLIS, March 26 - Honeywell Inc said its total debt
rose by more than 85 pct in 1986, mainly due to its 1.02
billion dlr acquisition of the Sperry Aerospace Group.
    At yearend, according to the company's 1986 annual report,
Honeywell's total debt stood at 1.44 billion dlrs, compared
with 776.6 mln dlrs in 1985.
    Honeywell said that if it had acquired the Sperry unit at
the beginning of 1986, its loss for the full year would have
been 9.88 dlrs a share.
    Honeywell's actual loss in 1986 was 8.33 dlrs a share.


.I 15740
.C
acq
.W
MCINTYRE MINES <MP> COMPLETES UNIT SALE.
    TORONTO, March 26 - McIntyre Mines Ltd said it completed
the previously announced sale of all shares of wholly owned
Smoky River Coal Ltd and certain related assets to Smoky River
Holdings Ltd for a nominal cash consideration.
    McIntyre did not specify the cash amount of the sale.
    Smoky River Holdings is an Alberta company controlled by
Michael Henson, former president and chief executive of
McIntyre, the company said.
    McIntyre said it retained an unspecified royalty interest
in Smoky River Coal based on net operating cash flows from the
company's coal properties.
    McIntyre also said it provided a three mln dlr last
recourse letter of credit to the Alberta government for Smoky
River Coal's reclamation obligations.
    The credit letter expires either when Smoky River completes
three mln dlrs of reclaiming activities or December 31, 1992,
which ever occurs first.
    McIntyre said it also remains contingently liable for
certain obligations now totalling about seven mln dlrs, which
will reduce over time as Smoky River continues to operate.
    McIntyre's principal asset continues to be its 14 pct
interest in Falconbridge Ltd <FALCF>.


.I 15743
.C
earn
.W
MEDIA GENERAL <MEG.A> UPS DIVIDEND, SETS SPLIT.
    RICHMOND, Va., March 26 - Media General Inc said it raised
the annual dividend on its class A and class B common stock to
68 cts a share from 64 cts.
    The company said it also declared a two-for-one stock split
of both stock issues, which is subject to shareholder approval
of an increase in the number of authorized class A shares.
    Media General said the increased dividend is payable June
12 to shareholders of record May 29.
    The proposed stock split will be paid May 29 in shares of
class A shares, the company said.
    The company said it also approved an amendment to its
articles of incorporation allowing class B shares to be
coverted into class A shares at the option of the holder.
    Media General said the moves should broaden investor
interest in its class A stock.


.I 15745
.C
acq
.W
INVESTMENT GROUP UPS STAKE IN SCANDINAVIA <SCF>.
    WASHINGTON, March 26 - A multinational shareholder group
told the Securities and Exchange Commission it increased its
stake in Scandinavia Fund Inc to 35.5 pct, from 30.5 pct.
    The investors include Ingemar Rydin Industritillbehor AB,
of Sweden, and VBI Corp, of the West Indies.


.I 15746
.C
earn
.W
CAMPBELL RED LAKE MINES LTD <CRK> 4TH QTR NET.
    TORONTO, March 26 -
    Shr 21 cts vs 10 cts
    Net 10,798,000 vs 4,704,000
    Revs 47.4 mln vs 32.9 mln
    YEAR
    Shr 58 cts vs 54 cts
    Net 29.1 mln vs 25.8 mln
    Revs 187.7 mln vs 134.7 mln
    Note: 1986 net includes 2.8 mln dlr extraordinary gain in
4th qtr and 6.5 mln dlr fl-yr extraordinary loss involving
provision for decline in market value of marketable securities
partly offset by gain from sale of stake in Dome Petroleum Ltd
<DMP>.
   


.I 15748
.C
earn
.W
(CORRECTED)-<AMERICAN VARIETY INTERNATIONAL INC>.
    LOS ANGELES, March 23 -
    Shr loss seven cts vs profit 11 cts
    Net loss 76,888 vs profit 106,885
    Revs 752,234 vs 922,036
    (corrects year ago per share to profit, instead of loss in
item that ran on March 23)


.I 15749
.C
crude;nat-gas;
.W
OIL EXECUTIVES SEE GRADUAL RISE IN PRICES.
     HOUSTON, March 26 - Top executives with Tenneco Corp <TGT>
and Sabine Corp <SAB> said they expected world oil prices to
gradually increase over the next two years as U.S. reliance on
imports of oil from the Middle East grows.
     "I believe we have bottomed out and can look forward to a
trend of gradually increasing prices," C.W. Nance, president of
Tenneco Oil Exploration and Production, told a meeting of the
Petroleum Equipment Suppliers Association.
     Nance predicted that by 1990, the Organization of
Producing and Exporting Countries would be producing at the
rate of 80 pct of capacity.
    The gain will come largely through increased imports to the
United States, he said.
    "They will be able to raise the price again but I do not
think they will raise it as much as they did in 1979," Nance
said. He did not say how much of a price hike he expected.
     Andrew Shoup, chairman of Dallas-based Sabine, predicted
that world oil prices would increase from a range of 15 to 20
dlrs a barrel in 1987 to a range of 17 to 22 dlrs a barrel in
1988. Natural gas prices, Shoup said, should similarly climb
from a range of 1.30 to 1.70 dlrs per mcf this year to between
1.50 and 1.90 dlrs per mcf in 1988.
     "Fuel switching could help us as much as five pct in
increased demand," Shoup said, referring to the gas industry's
outlook for 1987. Repeal of the Fuel Use Act, a federal law
prohibiting the use of natural gas in new manufacturing plants
and utilities, could increase demand for gas by as much as 15
pct, he said.
     Tenneco's Nance also said that some U.S. cities may
experience peak day shortages in natural gas supplies next
winter because of the industry's reduced deliverability.
     Tenneco's gas deliverability, for example, dropped by 20
pct during 1986, he said.
     "This does not mean the gas bubble is gone," Nance said.
"We believe gas prices have bottomed out. The real question is
how broad the valley is -- is it one year, two years or three
years before we start to climb out?"
      J.C. Walter of <Walter Oil and Gas Corp>, said the recent
improvement in oil prices was not enough for independent
producers to begin new onshore drilling projects.
     "If crude oil stays below 20 dlrs a barrel and 1.50 dlr
per mcf for natural gas prevails, the prospects for onshore
exploration at deeper depths in the Texas Gulf Coast by
independents in the 1990s are pretty dismal," Walter said.
     He suggested that some independents may instead turn to
exploration in shallow federal offshore leases. Farm-out
agreements, cheap rig rates and less competition have held
finding costs in those areas to five or six dlrs a barrel,
Walter said.


.I 15751
.C
ipi
.W
REPORT SAYS SOVIET ECONOMIC PLANS TOO OPTIMISTIC.
    by Robert Green, Reuters
    WASHINGTON, March 26 - The Soviet economy has grown at an
increased rate under Mikhail Gorbachev's leadership, but his
goals may be too ambitious, according to a report from U.S.
intelligence agencies.
    The report was prepared jointly by the Central Intelligence
Agency and the Defense Intelligence Agency for the
Congressional Joint Economic committee, which released it.
    It said the Soviet economy grew by 4.2 pct in 1986,
Gorbachev's first full year in power, twice the average rate of
growth over the previous 10 years.
    Gorbachev's policies to improve worker attitudes, remove
incompetent officials, reduce corruption and alcoholism and
modernize the country's industrial equipment accounted for some
of the gains, the report said.
    "Although many of the specific policies Gorbachev has
adopted are not new, the intensity Gorbachev has brought to his
efforts and his apparent commitment to finding long-term
solutions are attributes that his immediate predecessors
lacked. Nonetheless, Gorbachev's program appears too ambitious
on a number of counts," the report said.
    Earlier this week, two U.S. experts on the Soviet Union
said Gorbachev was likely to be ousted in three to four years
if he continues his reform policies.
    "I don't think he can last four years," Marshall Goldman of
Harvard University told a Congressional hearing. "He's moving so
fast, he's stepping on so many toes."
    A similar comment came from Peter Reddaway of the
Smithsonian Institution's Kennan Institute for Advanced Russian
studies.
    The economic report said meeting targets for commodity
output would require unrealistic gains in productivity and
industrial output targets appear too high to allow time to
install more advanced equipment.
    None of Gorbachev's proposals would change the system of
economic incentives that has discouraged innovation and
technological change, the report added.
    "The first significant resistance to specific policies,
although not overall goals, surfaced (in 1986) in both the
massive government and party bureaucracy, particularly among
enterprise managers who complained that they were being asked
to carry out conflicting goals -- such as to raise quality
standards and output targets simultaneously," the report said.
    The CIA-DIA report predicted two to three pct growth in the
Soviet economy over the next several years. It said the Soviet
Union trailed the U.S. by seven to 12 years in advanced
manufacturing technologies, such as computers and
microprocessors.


.I 15752
.C
earn
.W
******GREAT AMERICAN CORP SEES 1ST QTR CHARGE OF 14.1 MLN DLRS AGAINST LOAN LOSS ALLOWANCE.
Blah blah blah.

.I 15754
.C
earn
.W
GREAT AMERICAN <GTAM> SEES CHARGE, WRITEDOWN.
    BATON ROUGE, LA., March 26 - Great American Corp said
preliminary findings by regulatory examiners of its AMBANK
subsidiary will result in a first quarter charge of 14.1 mln
dlrs and a writedown of 1.4 mln dlrs.
    The charge will be made against the allowance for possible
loan losses, and the writedown is of other real estate.
    Great American said the examiners were conducting a regular
examination and a final report is not expected for several
weeks. Management intends to include the charge and writedown
in response to the preliminary findings.
    Great American said regulatory authorities are not
requiring an adjustment of the previously reported financial
results for Great American for 1986.
    However, Great American has revised its previous estimates
of provisions for possible losses and has added 9.9 mln dlrs to
the allowance account as of December 31, 1986. It said it took
the action since the charge-offs will significantly deplete its
allowance for possible loan losses and the economic environment
does not show signs for significant improvement in the near
future.
    It said the additional provision increases the allowance to
26.4 mln dlrs, representing 6.63 pct of the outstanding loan
portfolio and 83.2 pct of non-performing loans at year-end.
    Great American said its revised net loss for the fourth
quarter is 14.1 mln dlrs, or 6.36 dlrs per share, compared to a
net loss of 2.4 mln dlrs or 1.06 dlrs per share the year
earlier.


.I 15756
.C
earn
.W
<MARATHON NATIONAL BANK> YEAR NET.
    LOS ANGELES, March 26 -
    Shr 78 cts vs 51 cts
    Net 725,000 vs 451,000
    Assets 98.5 mln vs 85.9 mln
    Loans 40.5 mln vs 28.8 mln
    Deposits 90.4 mln vs 78.7 mln


.I 15758
.C
earn
.W
MACMILLAN BLOEDEL <MMBLF> STOCK SPLIT APPROVED.
    VANCOUVER, British Columbia, March 26 - MacMillan Bloedel
Ltd said shareholders approved the company's previously
reported proposed three-for-one stock split.


.I 15759
.C
acq
.W
CTC DEALER TO APPEAL CANADIAN TIRE DECISION.
    TORONTO, March 26 - CTC Dealer Holdings Ltd said it would
appeal a previously reported Ontario court ruling upholding an
Ontario Securities Commission decision to block CTC's bid for
49 pct of <Canadian Tire Corp Ltd> common shares.
    CTC, a group of Canadian Tire dealers, added that it also
extended its tender offer to March 31 and was seeking approval
to extend its bid while the appeal court heard the case.
    It said Alfred and David Billes, two of Canadian Tire's
controlling shareholders, backed the appeal and would seek
leave to appeal while third controlling shareholder Martha
Billes supported the appeal but would not join an appeal
motion.


.I 15761
.C
earn
.W
URS CORP <URS> REGULAR STOCK DIVIDEND.
    SAN MATEO, Calif., March 26 - 
    Qtly div five pct stock vs five pct stock
    Pay April 16
    Record April six


.I 15763
.C
earn
.W
DUCOMMUN INC <DCO> QUARTERLY DIVIDEND.
    CYPRESS, Calif., March 26 -
    Qtly div five cts vs five cts
    Pay April 30
    Record April 15


.I 15764
.C
earn
.W
TEKTRONIX INC <TEK> QUARTERLY DIVIDEND.
    BEAVERTON, Wash., March 26 -
    Qtly div 15 cts vs 15 cts
    Pay May 4
    Record April 10
    Note: previous dividend restated to reflect January 26
two-for-one stock split.


.I 15766
.C
earn
.W
<MCM CORP> TO DELAY YEAREND REPORT.
    RALEIGH, N.C., March 26 - McM Corp said it has been forced
to delay the release of its fourth quarter and yearend results
until it can determine the effects on its balance sheet of a
possible increase in liabilities at a unit.
    Earlier this month, the company's Occidental Fire and
Casualty Co unit paid 26 mln dlrs to a unit of <Mutual of
Omaha> under a commutation agreement.
    However, McM said it now believes it is possible that the
unit's liabilities may exceed 26 mln dlrs.
    It said a finding on any possible increase should be
completed by April 15.


.I 15767
.C
interest;money-supply;
.W
FED DATA INDICATE POLICY LIKELY TO STAY ON HOLD.
    By Martin Cherrin, Reuters
    NEW YORK, March 26 - Federal Reserve data released today
indicate that there has been no policy change in recent weeks
and that none is likely at next week's Federal Open Market
Committee (FOMC) meeting, economists said.
    "The Fed continues to be accommodative in its provision of
reserves, indicating that there has been no policy shift since
the beginning of this year," said Harold Nathan, economist at
Wells Fargo Bank.
    "These numbers and other things suggest the FOMC will not
change policy," said Robert Brusca of Nikko Securities Co.
    "The Fed is sitting fairly pretty now. There's no real
reason for it to change policy," said Joseph Liro of S.G.
Warburg and Co Inc.
    Liro said the economy is showing moderate growth and does
not require immediate policy easing and the money aggregates
may well end March at the bottom of their target ranges.
    All of the economists agreed that the Fed's major concern
now is recent weakness in the dollar which early this week was
heavily supported by central banks. They said fear of hurting
the dollar will cause the Fed to be cautious in lowering
interest rates further.
    Numbers released by the Fed today were all in line with
expectations and similar to the data for most of this year.
    The Fed said that banks' net free reserves averaged 603 mln
dlrs in the two-week statement period that ended on Wednesday
versus 749 mln dlrs in the previous period.
    In the single week to Wednesday, banks' borrowings at the
discount window, less extended credits, averaged 302 mln dlrs
compared with 228 mln dlrs in the first week of the statement
period. Meanwhile the Federal funds rate average edged up to
6.14 pct from 6.08 pct.
    The Fed's failure to add reserves in the market on Tuesday
and Wednesday surprised some, but economists said the data
released today suggest it had no real need to add reserves.
    The Fed's absence may be explained by the lack of any
pressing need for it to supply reserves and by a desire to
boost borrowings in the second week of the statement period to
meet its borrowings target, said Liro of Warburg.
    Liro said the Fed probably is shooting for a two-week
borrowings average of 300-325 mln dlrs. The borrowings actually
averaged 265 mln dlrs in the latest statement period and that
was up from 191 mln dlrs in the prior period.
    Brusca of Nikko agreed that the Fed probably is aiming for
two-week average discount window borrowings of around 300 mln
dlrs. He said that would correspond to a Federal funds rate of
around 6.10 pct.
    It is nearly impossible for the Fed to hit any borrowings
target since the demand for excess reserves is erratic, said
Wells Fargo's Nathan. He said the Fed is focusing instead on
the funds rate and is trying to keep it roughly within a six to
6-1/4 pct band.
    Upward funds rate pressure and a big reserve-adding need
are anticipated for the statement period that began today.
 More
    Brusca believes the Fed will have to add 3.5 to four
billion dlrs a day in reserves in this statement period. Liro
puts the add need at around 3.9 billion dlrs.
    To partly address this requirement, many expect the Fed to
add permanent reserves with effect next Thursday by offering to
buy all maturities of Treasury bills on Wednesday. A similar
coupon "pass" may be required later.
    There will be a greater demand for funds in this statement
period because it includes the close of the quarter. Further
upward pressure on the Federal funds rate may come from window
dressing demand as the Japanese fiscal year ends on March 31.


.I 15774
.C
earn
.W
BLASIUS INDUSTRIES INC <BLAS> 3RD QTR LOSS.
    ERIE, Pa., March 26 - Qtr ended Feb 28
    Oper shr loss one ct vs profit 12 cts
    Oper net profit 3,000 vs profit 218,000
    Revs 12.0 mln vs 10.6 mln
    Avg shrs 2,421,000 vs 1,602,000
    Nine mths
    Oper shr profit 28 cts vs profit 24 cts
    Oper net profit 639,000 vs profit 500,000
    Revs 34.6 mln vs 31.2 mln
    Avg shrs 1,928,000 vs 1,620,000
    Note: Oper excludes tax credits of 180,000 and 415,000 for
year-ago qtr and nine mths.
    Oper includes writeoff related to subordinated note
exchange of 185,000 for current qtr and nine mths.


.I 15775
.C
earn
.W
GAINSCO INC <GAIN> 4TH QTR NET.
    FORT WORTH, Texas, March 26 - 
    Shr nil vs four cts
    Net 12,000 vs 140,000
    Revs 4,446,000 vs 3,998,000
    Avg shrs 4,364,000 vs 3,461,000
    Year
    Shr 60 cts vs 22 cts
    Net 2,257,000 vs 774,000
    Revs 18.3 mln vs 21.1 mln
    Avg shrs 3,788,000 vs 3,461,000
   
    Note: Net includes realized gains on investments of 50,000
vs 105,000 for qtr and 174,000 vs 202,000 for year.
    Net also includes tax credit of 64,000 for year-ago 12
mths.


.I 15776
.C
trade
.W
GATT WARNS U.S. ON FEDERAL BUDGET, PROTECTIONISM.
     GENEVA, March 27 - The United States' emphasis on its
foreign trade deficit is misplaced and the country's real
problem lies in its large federal budget deficit, the General
Agreeement on Tariffs and Trade (GATT) said.
     By stressing its record trade deficit of 169.8 billion
dlrs last year, the U.S. Was fuelling protectionist pressure
which threatens the world trading system, it said in an annual
report.
    The fundamental problem, the size of the U.S. Federal
budget deficit, could be remedied only by cutting government
spending or encouraging personal savings to finance the debt,
it said.
    GATT also predicted world trade would grow by only 2.5 pct
in 1987 -- a full percentage point lower than in each of the
previous two years.
    GATT experts urged Washington to resist protectionism and
instead seek macroeconomic changes to reduce the current
account payments deficit -- higher private savings, lower
investment and a smaller federal budget deficit.
    Raising U.S. Trade barriers "would result in little or no
reduction in the current account deficit. It would, however,
increase inflation and reduce world trade," it said.
    "The basic cause -- some combination of insufficient
domestic savings and an excessive budget deficit -- would
remain," the report said.
    GATT economists said trade expansion would slow this year
because of slower growth forecasts in Japan and some West
European nations as they adjust production and workforces to a
low dollar, risk of higher U.S. Inflation, concerns over Third
World debt management and looming protectionism.
    The report also said imbalances in the current accounts of
Japan, West Germany and the U.S. Had increased in 1986.
    The most likely explanation was that exchange rate changes
were not backed by changes in macroeconomic policies, it added.
    "Thus the prediction that these imbalances would be reduced
as a result of the major realignment of exchange rates was not
borne out last year," the report said.
    GATT warned there was a risk of a sizeable increase in the
U.S. Inflation rate under the combined impact of a rapidly
expanding money supply and low dollar.
    "Such a development could worsen the business climate by
increasing uncertainty and pushing up interest rates, which, in
turn, would adversely affect world trade."
    But the report noted a surprising rise in imports to the
United States, despite the dollar's depreciation which makes
foreign products more expensive.
    It suggested that resources idle in the U.S., Both human
and in underutilised factories, were not geared to produce the
goods and services sought from abroad.
    World trade in manufactures grew by only three pct in 1986,
about half of the rate of the previous year.
    Trade in agricultural goods expanded by just one pct,
continuing a stagnant pattern in that sector this decade, GATT
said.
    Developing countries' exports declined significantly, while
their imports increased moderately, although full statistics
are not available yet, GATT said.
    The combined export earnings of 16 major indebted nations
were sharply lower, and only five of them (Chile, Colombia,
Philippines, South Korea, and Thailand) had higher exports.


.I 15779
.C
alum
.W
OREGON ALUMINUM SMELTER INCREASING OUTPUT.
    THE DALLES, Ore., March 26 - Northwest Aluminum Co said it
will open a second pot line in mid-May, bringing the smelter
here to 80 pct of its production capacity.
    Northwest Aluminum President Brett Wilcox, who leased the
30-year-old smelter from Martin Marietta Corp., said production
would increase from around 45 tons a year at present to just
over 70 tons.
    Martin Marietta closed and mothballed the smelter in 1984.
Northwest Aluminum reopened it last December.
    Wilcox said a good aluminum market and several months of
successful operation led to the decision to expand production.



.I 15781
.C
cpi
.W
******Japan February consumer prices unchanged (0.4 pct January drop) - official.
Blah blah blah.

.I 15782
.C
cpi
.W
JAPAN CONSUMER PRICES UNCHANGED IN FEBRUARY.
    TOKYO, March 27 - Japan's consumer price index (base 1985)
was unchanged at 99.7 in February from a month earlier, the
government's Management and Coodination Agency said.
    The index showed a 0.4 pct drop in January.
    The February index was down one pct from a year earlier for
the third consecutive year-on-year drop.
    In January, the index fell 1.1 pct from a year earlier, the
first drop of over one pct since a 1.3 pct drop in September
1958.
    In February petrol prices increased but winter clothing
prices stayed low and vegetable prices fell.
    The February year on year fall was due to lower vegetable,
fuel oil, petrol, electricity and gas prices, and despite
higher housing, education, footwear and clothing costs.
    The unadjusted consumer price index for the Tokyo area
(base 1985) in mid-March rose 0.4 pct from a month earlier to
100.6, reflecting higher vegetable prices.
    The index fell 0.3 pct year on year, the third consecutive
yearly drop, reflecting lower food and utility costs.


.I 15783
.C
reserves
.W
N.Z. FOREIGN RESERVES FALL SLIGHTLY IN FEBRUARY.
    WELLINGTON, March 27 - New Zealand's official foreign
reserves fell slightly to 7.13 billion N.Z. Dlrs in February
from 7.15 billion in January but were sharply above 2.85
billion in February 1986, the Reserve Bank said in its weekly
statistical release.


.I 15784
.C
dlr;money-fx;
.W
******Bank of Japan buys dollars around 149.00 yen - Tokyo dealers.
Blah blah blah.

.I 15785
.C
trade
.W
WHITE HOUSE PANEL SAID URGING JAPAN RETALIATION.
    WASHINGTON, March 26 - The White House Economic Policy
Council decided to recommend trade sanctions against Japan for
violations of the U.S.-Japanese semiconductor agreement,
industry sources said.
    They would give no details, noting that the White House had
not commented on the decision. The administration has been
under pressure to retaliate.
    There was no immediate announcement on the council's
decision, but U.S. Officials said it was likely the senior
policy group's move on curbs reflected growing American
frustration over alleged unfair Japanese trade practices.
    U.S. Officials said President Reagan would probably act on
the recommendations in a day or so, after consulting with aides
on the foreign policy implications of retaliation.
    The officials said Reagan might delay retaliation for a
last try to persuade Japan to abide by the agreement reached
last July governing trade in semiconductors.
    Under a pact reached last July, Japan was to stop dumping
semiconductors in world markets and to open its own market to
U.S.-made semiconductors.
    In return, the U.S. Agreed to hold up imposing anti-dumping
duties on Japanese semiconductor shipments.
    The United States said that dumping has stopped in the U.S.
Market but has continued in third countries, and that the
Japanese market remains closed.
    The pressure on Reagan to retaliate included a unanimous
call by the Senate last week to impose penalties on Japanese
high technology products containing semiconductors.
    A call for retaliation also came from the semiconductor
industry and from its chief trade union.
    U.S. Officials said the most likely move against Japan
would involve duties on semiconductor-based goods, such as
televisions, video cassette recorders and computers.


.I 15786
.C
trade
.W
NAKASONE TO VISIT WASHINGTON IN LATE APRIL.
    TOKYO, March 27 - Prime Minister Yasuhiro Nakasone will
make an official week-long visit to the United States from
April 29 and hold talks in Washington with President Reagan,
Chief Cabinet Secretary Masaharu Gotoda told reporters.
    Government sources said Nakasone would try to resolve
growing bilateral trade friction and discuss the June Venice
summit of Western industrial democracies.
    Foreign Minister Tadashi Kuranari will accompany Nakasone,
ministry officials said.
    U.S. Industry sources in Washington said the White House
Economic Policy Council was recommending trade sanctions
against Japan for violating the two countries' agreement on
semiconductor trade.
    Under the pact, Japan pledged to stop dumping microchips in
the U.S. And Asia and open its domestic market to U.S.
Semiconductors.


.I 15789
.C
iron-steel;wheat;grain;coffee;crude;trade;tea;
.W
INDIA STEPS UP COUNTERTRADE DEALS TO CUT TRADE GAP.
    By Ajoy Sen, Reuters
    NEW DELHI, March 27 - India is searching for non-communist
countertrade partners to help it cut its trade deficit and
conserve foreign exchange.
    Wheat, tobacco, tea, coffee, jute, engineering and
electronic goods, as well as minerals including iron ore, are
all on offer in return for crude oil, petroleum products,
chemicals, steel and machinery, trade sources told Reuters.
    Most of the impetus behind countertrade, which began in
1984, comes from two state trading firms -- the State Trading
Corp (STC) and the Minerals and Metals Trading Corp (MMTC).
    "The two state trading corporations are free to use their
buying power in respect to bulk commodities to promote Indian
exports," a commerce ministry spokeswoman said, adding that
private firms are excluded from countertrading.
    One trade source said India has targetted countries that
depend on an Indian domestic market recently opened to foreign
imports.
    However, countertrade deals still make up only a small part
of India's total trading and are likely to account for less
than eight pct of the estimated 18.53 billion dlrs in trade
during the nine months ended December, the sources said.
    Countertrade accounted for just five pct of India's 25.65
billion dlrs in trade during fiscal 1985/86 ended March,
against almost nothing in 1984/85, official figures show.
    However, the figures exclude exchanges with the Eastern
Bloc paid in non-convertible Indian rupees, the sources said.
    Total trade with the Soviet Union, involving swaps of
agricultural produce and textiles for Soviet arms and crude
oil, is estimated at 3.04 billion dlrs in fiscal 1986/87,
against three billion in 1985/86.
    Indian countertrade, which is being promoted mainly to help
narrow the country's large trade deficit, is still
insignificant compared with agreements reached by Indonesia,
Venezuela and Brazil, the trade sources said.
    The trade deficit, which hit an estimated record 6.96
billion dlrs in 1985/86, is expected to decline to 5.6 billion
in the current fiscal year.
    But the push to include non-communist countries in
countertrade is also due to other factors, including the slow
growth of foreign reserves, a tight debt repayment schedule,
shrinking aid and trade protectionism, businessmen said.
    One source said India is showing more dynamism in promoting
countertrade deals than in the past, when the deals were made
discreetly because they break GATT rules. As a member of the
General Agreement on Tariffs and Trade (GATT), India cannot
officially support bartering.
    The MMTC's recent countertrade deals include iron ore
exports to Yugoslavia for steel structures and rails.
    "MMTC's recent global tenders now include a clause that
preference will be given to parties who accept payment in kind
for goods and services sold to India," a trade official said,
adding that the policy remains flexible.
    "We also take into account other factors such as prices at
which the goods and services are offered to India," the trade
official said.
    Early this year the commerce ministry quietly told foreign
companies interested in selling aircraft, ships, drilling rigs
and railway equipment to India that they stood a better chance
if they bought Indian goods or services in return, the trade
sources said.
    Illustrating the point, the official said a South Korean
firm recently agreed to sell a drilling platform worth 40 mln
dlrs to the state-run Oil and Natural Gas Commission.
    In return, the South Koreans gave a verbal assurance to buy
Indian goods worth 10 pct of the contract, against the 25 pct
sought by New Delhi, the trade official said.
    "We selected the Korean firm because its bid was the lowest,"
he added.
    Countertrade is helping African countries short of foreign
currency to import goods. India has signed a trade protocol to
buy up to 15,000 tonnes of asbestos fibre from Zimbabwe in
exchange for Indian goods, including jute bags and cars.
    But despite India's new drive, countertrade has some
inherent problems, they added.
    "It is not always easy to meet the basic requirement that
the trade should always be balanced," one trade source said. "The
other problem is it is often difficult to supply or buy
commodities which the other party wants."
    Another added, "Barter is also restrictive. We look upon it
as a temporary measure to get over the current balance of
payments difficulty.
    "This is why countertrade has not been made a law in India.
It does not even figure in the country's foreign trade policy."


.I 15792
.C
earn
.W
BP AUSTRALIA REPORTS 16.15 MLN DLR YEAR LOSS.
    MELBOURNE, March 27 - The <British Petroleum Co of
Australia Ltd> reported a 16.15 mln dlr net loss for 1986
against a 73.38 mln dlr profit in 1985 after sales fell to 2.27
billion dlrs from 2.94 billion.
    The British Petroleum Co Plc <BP.L> unit attributed the
deficit to stock losses arising from the drop in crude prices
in the first half, when it made a 119.93 mln dlr loss.
    It said government compensation, in the form of subsidies
to refiners to partially cover stock losses, together with
improved crude prices in the second half, enabled the group's
oil business to make a modest pre-tax profit.
    BP Australia said it had not recommended a dividend.
    Commenting on the year's performance, the company said it
suspended operations at the 60 pct-owned Agnew Nickel mine
because of losses sustained from declining nickel prices.
    The results also included an 11.3 mln dlr extraordinary
writedown on the value of the laid-up oil exploration drillship
Regional Endeavour.
    BP Australia said it had sold its 33-1/3 stake in chemical
maker <CSBP and Farmers Ltd> yielding an extraordinary profit
of 18.9 mln dlrs and expected to finalise the sale of the 80
pct-owned <Kwinana Nitrogen Co> in the first half of 1987.


.I 15796
.C
iron-steel;trade;
.W
JAPAN SEAMLESS PIPE MAKERS TO FORM EXPORT CARTEL.
    TOKYO, March 27 - Four major Japanese steelmakers plan to
form a seamless pipe export cartel for markets other than the
U.S. And the European Community for a year from April to keep
prices above output costs, company officials involved said.
    The companies are Nippon steel Corp <NSTC.T>, Sumitomo
Metal Industries Ltd <SMIT.T>, Nippon Kokan KK <NKKT.T> and
Kawasaki Steel Corp <KAWS.T>, which together account for some
95 pct of Japan's total seamless pipe exports.
    The firms will apply to form the cartel to the Ministry of
International Trade and Industry today and approval is expected
later this month, the officials said.
    Under the plan, the four companies will set floor prices
for exports as prices have fallen sharply due to the yen's
appreciation against the dollar, reduced world demand caused by
lower oil prices and excess domestic capacity which resulted in
price-cutting competition, the officials said.
    In calendar 1986, seamless pipe exports fell to 2.34 mln
tonnes from 2.99 mln in 1985 and 3.12 mln in 1981.
    The officials declined to give any idea of floor prices,
saying it depends partly on volume, but industry sources
estimate average export prices would rise by around 20 pct to
some 800 dlrs a tonne.


.I 15798
.C
interest
.W
******ANZ BANK SAYS IT WILL CUT AUSTRALIAN PRIME TO 18.25 PCT FROM 18.5 ON MARCH 30.
Blah blah blah.

.I 15800
.C
earn
.W
JARDINE MATHESON HOLDINGS LTD <JARD.HKG> YEAR 1986.
    HONG KONG, March 27 -
    Shr 126 H.K. Cents vs 42 (adjusted)
    Final div 30 cents vs 10, making 40 vs 10
    Net 479 mln dlrs vs 157 mln
    Turnover 10.4 billion vs 10.5 billion
    Note - Profits excluded extraordinary items 52 mln dlrs vs
losses 426 mln. Dividend payable after general meeting on June
4, books close April 22 to May 5.
    Note - Bonus issue of four new "B" shares of par value 20
cents each for every one share of par value two dlrs each,
books close August 3 to 10.
 REUTER N

.I 15801
.C
earn
.W
******BHP CO LTD NET PROFIT 603.0 MLN DLRS FIRST THREE QTRS VS 813.0 MLN.
Blah blah blah.

.I 15802
.C
earn
.W
JARDINE MATHESON HOLDINGS LTD <JARD.HKG> YEAR 1986.
    HONG KONG, March 27 -
    Shr 126 H.K. Cents vs 42 (adjusted)
    Final div 30 cents vs 10, making 40 vs 10
    Net 479 mln dlrs vs 157 mln
    Turnover 10.4 billion vs 10.5 billion
    Note - Profits excluded extraordinary items 52 mln dlrs vs
losses 426 mln. Dividend payable after general meeting on June
4, books close April 22 to May 5.
    Note - Bonus issue of four new "B" shares of par value 20
cents each for every one share of par value two dlrs each,
books close August 3 to 10.


.I 15803
.C
ipi
.W
******Japan February industrial production rose 0.3 pct (0.5 pct January drop) - official.
Blah blah blah.

.I 15805
.C
earn
.W
THE BROKEN HILL PTY CO LTD <BRKN.S> NINE MONTHS.
    MELBOURNE, March 27 - First nine months ended Feb 28
    Shr 47.4 cents vs 65.2
    Net 603.0 mln dlrs vs 813.0 mln
    Sales 6.52 billion vs 6.53 billion
    Other income 454.9 mln vs 160.2 mln
    Shrs 1.27 billion vs 1.03 billion.
    Final div 20 cents vs same, making 37.5 vs same.
    One-for-five bonus issue
    Third qtr net 206.0 mln dlrs vs 238.6 mln
    Third qtr sales 2.11 billion vs 2.10 billion.
    NOTE - Div pay May 27. Div and bonus reg May 1. Nine months
net is after tax 499.1 mln dlrs vs 722.6 mln, depreciation
509.5 mln vs 427.3 mln, interest 366.8 mln vs 215.8 mln and
minorities 15.3 mln vs 15.7 mln but before net extraordinary
profit 60.7 mln vs profit 43.2 mln.
    Nine month divisional net earnings before minorities were.
    Petroleum 184.9 mln dlrs vs 472.4 mln
    Minerals 254.6 mln vs 241.0 mln
    Steel 148.2 mln vs 191.1 mln
    Corporate items and investments profit 30.6 mln vs loss
75.8 mln.


.I 15806
.C
ipi
.W
JAPAN INDUSTRIAL PRODUCTION RISES IN FEBRUARY.
    TOKYO, March 27 - Japan's industrial production index (base
1980) rose 0.3 pct to a seasonally adjusted 122.7 in February
from the previous month, the Ministry of International Trade
and Industry said.
    Output fell 0.5 pct in January from a month earlier.
    The preliminary, unadjusted February index rose 0.6 pct
from a year earlier after a 0.5 pct year-on-year rise in
January
    The adjusted February producers' shipment index (base 1980)
rose 0.7 pct to 118.5 from January when it fell 0.7 pct from
December.
    The unadjusted shipment index rose 1.4 pct from a year
earlier after a 1.0 pct year-on-year January gain.
    The adjusted February index of producers' finished goods
(base 1980) fell 1.3 pct to 104.5 from January when it fell 0.3
pct from December.
    The unadjusted index fell 3.5 pct from a year earlier after
a 2.3 pct year-on-year drop in January.
    A 2.7 pct rise by the electronics industry on higher output
of facsimile machines and video tape recorders was a major
contributor to the rise in February industrial output, though
car production fell from January.
    The official said industrial production is expected to rise
3.2 pct in March on higher production by machinery, steel and
chemical makers but will drop 3.4 pct in April on a downturn in
the output of those industries. He gave no further details.


.I 15810
.C
gnp
.W
SOUTH KOREA PLANS 11-12 PCT BUDGET RISE IN 1988.
    SEOUL, March 27 - South Korea plans to increase the size of
its budget in 1988 by 11 to 12 pct from this year's 15,596
billion won, Economic Planning Board officials said.
    The proposed boost is based on a government forecast that
gross national product (gnp) will grow by more than 7.5 pct and
the gnp deflator by 3.5 pct in 1988, against targets of 8.0 pct
and 3.5 pct respectively this year, they said.
    Details of the 1988 budget, in which spending will match
revenue, have yet to be worked out, the officials said.
    The balanced budget in 1986 totalled 13,800.5 billion won.


.I 15812
.C
earn
.W
JARDINE MATHESON PLANS FOUR-FOR-ONE BONUS ISSUE.
    HONG KONG, March 27 - Jardine Matheson Holdings Ltd
<JARD.HKG> said it planned a bonus issue of four new "B" shares
of 20 H.K. Cents each for every ordinary share of par value two
dlrs.
    A company statement said the firm expects to pay a total
1987 dividend of four cents per "B" share, while the "A" share
dividend will be maintained at last year's level of 40 cents a
share.
    Jardine Matheson announced earlier a 205 pct jump in 1986
net profits to 479 mln dlrs from 157 mln in 1985.
    Shareholders' funds increased to 5.02 billion dlrs from
4.77 billion in 1985, the statement said.
    It quoted chairman Simon Keswick as saying Jardine Matheson
achieved the good performance through satisfactory results in
most sections, especially Hong Kong Land Co Ltd <HKLD.HKG>,
Jardine Fleming Co Ltd, and its business in Japan.
    He said the group's stake of about 35 pct in Hong Kong
Land, which will be lowered to 26 pct after the completion of a
reorganisation, is "a long term investment and now stands at a
level which causes us no financial strain or problems of asset
imbalance."
    Keswick said the issue of new "B" shares will give the group
"the flexibility in the future to issue ordinary shares for
expansion without jeopardising the shareholding stability which
has been brought about through the group's recent
restructuring."
    He said the new issue is pending approval from both the
firm's shareholders and warrant holders, adding an appropriate
adjustment will be made to the warrant exercise price.
    The Jardine group has nearly completed its reorganisation,
with Jardine Matheson transferring its control of Hk Land to
the new unit <Jardine Strategic Holdings Ltd>.
    Jardine Strategic will also hold majority stakes in the two
companies spun off from Hk Land -- <Mandarin Oriental
International Ltd> and <Dairy Farm International Holdings Ltd>
-- plus cross holdings with Jardine Matheson.
    Jardine Matheson, which had debts of about 2.7 billion dlrs
last year, will become debt free after the restructuring.
    "A positive cash flow from operations and disposals,
continuing into 1987, has transformed our balance sheet,"
Keswick said. He noted the firm last year sold interests in
airfreight operations, Australian properties and trucking
business, and its remaining U.S. Oil and gas activities.
    Jardine Matheson decided to make a provision against its
general trading business in the Middle East in view of the
continuing weakness of oil prices, Keswick said. But he said
the operations would be profitable in the longer term.
    He said the firm's function "has evolved into one primarily
of strategy, structure and financial and personnel policy."
    He said Jardine Matheson will reduce the size of the board
of directors but will simultaneously create a new Pacific
regional board. He gave no further details of the change.
    Jardine Matheson shares rose 20 cents to 24.90 dlrs at
midday on the Hong Kong stock market. In early trading it had
fallen to 24.30 dlrs because of rumours yesterday that the firm
planned a rights issue.


.I 15813
.C
earn
.W
BHP SEES STRONG FOURTH QUARTER BUT LOWER YEAR NET.
    MELBOURNE, March 27 - The Broken Hill Pty Co Ltd <BRKN.S>
said it expects a strong full year result, helped by sigificant
investment allowance credits in the fourth quarter, but net
will fall short of the record 988.2 mln dlrs earned in 1985/86
ended May 31.
    The group earlier reported its net earnings dropped to
603.0 mln dlrs in the first three quarters ended February 28
from 813.0 mln a year earlier.
    Third quarter net fell to 206.0 mln dlrs from 238.6 mln a
year earlier and 220.3 mln in the second quarter ended November
31, BHP said in a statement.
    Earnings in the first nine months were at the lower end of
share analysts' forecasts yesterday of a range of 600 mln to
620 mln dlrs.
    BHP held its annual dividend unchanged at 37.5 cents after
declaring a steady final dividend of 20 cents and announced a
one-for-five bonus issue to shareholders registered May 1.
    The bonus is being made from reserves which will not
qualify for tax-free distribution after the introduction of
dividend imputation next July 1.
    The bonus shares will not rank for the final dividend, BHP
said.
    BHP said it should not be expected that the present rate of
dividend will be maintained on the increased capital.
    The level of future dividends will be influenced by the
implications of the proposed dividend imputation legislation,
it said.
    As previously reported, dividends will become tax-free in
shareholders' hands provided they are paid out of profits that
have borne the full 49 pct company tax rate.
    BHP, which confined comment to the third quarter, said
petroleum net earnings dropped to 98.8 mln dlrs from 139.6 mln
a year earlier, and steel profit to 27.0 mln from 48.8 mln.
    BHP said the petroleum division earnings fall reflected
generally lower oil prices and sales volumes from Bass Strait
while the steel decline was due to a five pct fall in domestic
sales and higher costs associated with the commissioning of new
plant and some operational difficulties.
    The rise in third quarter minerals net to 95.7 mln dlrs
from 81.5 mln a year earlier largely reflected the increase in
ownership of the Mt Newman iron ore project, it said.
    The 60.7 mln dlr extraordinary gain, all in the third term,
reflected a 240.7 mln profit on the sale of <Blue Circle
Southern Cement Ltd> offset by a U.S. Oil acreage writedown.


.I 15815
.C
bop
.W
******Japan Feb current account surplus 7.38 billion dlrs (Jan 4.95 billion surplus).
Blah blah blah.

.I 15816
.C
bop
.W
******Japan February trade surplus 8.14 billion dlrs (January 5.70 billion surplus).
Blah blah blah.

.I 15818
.C
bop;trade;
.W
JAPAN FEBRUARY CURRENT ACCOUNT, TRADE SURPLUS JUMP.
    TOKYO, March 27 - Japan's current account surplus rose to
7.38 billion dlrs in February from 3.89 billion a year ago and
from 4.95 billion in January, the Finance Ministry said.
    The trade surplus rose to 8.14 billion dlrs in February
from 4.77 billion a year earlier and 5.70 billion in January.
    The long-term capital account deficit widened to 11.40
billion dlrs from 8.06 billion a year ago, but it narrowed from
12.32 billion in January, the Ministry said.
    Japan's February exports rose to 16.74 billion dlrs from
14.89 billion in February 1986 and from 14.65 billion in
January, the Ministry said. Imports fell to 8.61 billion from
10.12 billion a year earlier and 8.94 billion in January.
    The invisible trade deficit fell to 617 mln dlrs in
February from 693 mln a year earlier, but was up from a 527 mln
deficit in January.
    Figures do not tally exactly because of rounding.
    Transfer payments narrowed to a 140 mln dlr deficit last
month from a 185 mln deficit a year earlier and a 225 mln
deficit in January.
    The basic balance of payments deficit in February fell to
4.02 billion dlrs from 4.17 billion in February 1986 and 7.37
billion in January. Short-term capital account payments swung
to a 1.28 billion dlr deficit in February from a 1.60 billion
surplus a year earlier and a 1.44 billion dlr surplus in
January.
    Errors and omissions were 2.65 billion dlrs in surplus,
compared with a 1.27 billion surplus a year earlier and a 1.10
billion deficit in January. The overall balance of payments
deficit rose to 2.65 billion dlrs from 1.30 billion a year
earlier but was down from 7.04 billion in January.
    The seasonally adjusted trade surplus fell to 9.16 billion
dlrs in February from the record 9.58 billion in January, the
Ministry said.
    The seasonally adjusted current account surplus also
dropped to 8.4 billion dlrs in February from the record 8.83
billion set in January.


.I 15820
.C
sugar
.W
PHILIPPINES TO LOBBY U.S. FOR HIGHER SUGAR QUOTA.
    MANILA, March 27 - The Philippines will ask the U.S.
Agriculture Department (USDA) to increase its 1987 sugar import
quota following market reports that Taiwan will not be able to
fulfil its quota, Sugar Regulation Administration (SRA)
chairman Arsenim Yulo said.
    Yulo told Reuters the SRA would also protest a USDA move to
award Taiwan's shortfall to the Dominican Republic.
    The Dominican Republic already has a larger sugar quota,
Yulo said. "Any Taiwanese shortfall should be awarded to the
Philippines or at the least we should share a hike with the
Dominican Republic."
    The USDA last December listed 1987 sugar import quota
allocations for the Dominican Republic at 160,160 short tons
and for Taiwan at 10,920 short tons.
    The Philippines has said it was badly hit by a cut in its
quota to 143,780 short tons from 231,660 in 1986.


.I 15821
.C
oilseed;veg-oil;
.W
INDIA'S 1986/87 CASTOR OIL EXPORTS FALL - TRADERS.
    NEW DELHI, March 27 - India's castor oil exports are
provisionally estimated at 30,000 tonnes in fiscal 1986/87,
ending March 31, against 54,000 tonnes in 1985/86 due to a
shortfall in the domestic castorseed crop, private traders
said.
    Drought in parts of the country is expected to reduce the
castorseed crop to a provisionally estimated 350,000 tonnes in
1986/87 from 550,000 tonnes in 1985/86, they told Reuters.


.I 15823
.C
ship
.W
UNITED STATES LINES LAYS OFF FAR EAST STAFF.
    HONG KONG, March 27 - <United States Lines Inc> has laid
off 260 employees, almost its entire Far East staff, its Hong
Kong office general manager Elliott Burnside told Reuters.
    He also said calls by two of its container ships to Busan,
South Korea and Kaohsiung, Taiwan, had been cancelled.
    He declined comment on local press reports that U.S. Lines
planned to suspend operations because of failure to restructure
its 1.27 billion U.S. Dlr debt, but said the firm would make an
announcement later today.
    U.S. Lines filed for protection from its creditors under
Chapter Eleven of the U.S. Federal law last November.
    The English-language South China Morning Post said U.S.
Lines decided yesterday to sell its two remaining transpacific
service fleets and assets and those of its U.S.-South America
operation.
    It quoted a letter by company's chief executive Charles
Hiltzheimer that said the ships and assets will be bought by
rival U.S. Shipping companies, subject to approval by their
boards.
    U.S. Lines' Far East operations comprise offices in Hong
Kong, Singapore, Manila, Busan, Seoul, Tokyo, Yokohama, Kobe
and Osaka, Burnside said.


.I 15826
.C
wheat;grain;
.W
USDA REJECTS SRI LANKA'S 80 U.S. DLR WHEAT PRICE.
    COLOMBO, March 27 - Sri Lankan Food Department officials
said the U.S. Department of Agriculture rejected a U.S. Firm's
offer of 80 U.S. Dlrs per tonne CAF to supply 52,500 tonnes of
soft wheat to Colombo from the Pacific Northwest.
    They said Sri Lanka's Food Department subsequently made a
counter-offer to five U.S. Firms to buy wheat at 85 U.S. Dlrs
CAF for April 8-16 delivery.
    The company which obtains USDA approval for the proposed
price must inform the Department before 1330 gmt, they said.


.I 15827
.C
sugar
.W
PHILIPPINE SUGAR CROP SET AT 1.6 MLN TONNES.
    By Chaitanya Kalbag, Reuters
    MANILA, March 27 - Philippine sugar production in the
1987/88 crop year ending August has been set at 1.6 mln tonnes,
up from a provisional 1.3 mln tonnes this year, Sugar
Regulatory Administration (SRA) chairman Arsenio Yulo said.
    Yulo told Reuters a survey during the current milling
season, which ends next month, showed the 1986/87 estimate
would almost certainly be met.
    He said at least 1.2 mln tonnes of the 1987/88 crop would
be earmarked for domestic consumption.
    Yulo said about 130,000 tonnes would be set aside for the
U.S. Sugar quota, 150,000 tonnes for strategic reserves and
50,000 tonnes would be sold on the world market.
    He said if the government approved a long-standing SRA
recommendation to manufacture ethanol, the project would take
up another 150,000 tonnes, slightly raising the target.
    "The government, for its own reasons, has been delaying
approval of the project, but we expect it to come through by
July," Yulo said.
    Ethanol could make up five pct of gasoline, cutting the oil
import bill by about 300 mln pesos.
    Yulo said three major Philippine distilleries were ready to
start manufacturing ethanol if the project was approved.
    The ethanol project would result in employment for about
100,000 people, sharply reducing those thrown out of work by
depressed world sugar prices and a moribund domestic industry.
    Production quotas, set for the first time in 1987/88, had
been submitted to President Corazon Aquino.
    "I think the President would rather wait till the new
Congress convenes after the May elections," he said. "But there
is really no need for such quotas. We are right now producing
just slightly over our own consumption level."
    "The producers have never enjoyed such high prices," Yulo
said, adding sugar was currently selling locally for 320 pesos
per picul, up from 190 pesos last August.
    Yulo said prices were driven up because of speculation
following the SRA's bid to control production.
    "We are no longer concerned so much with the world market,"
he said, adding producers in the Negros region had learned from
their mistakes and diversified into corn and prawn farming and
cloth production.
    He said diversification into products other than ethanol
was also possible within the sugar industry.
    "The Brazilians long ago learnt their lessons," Yulo said.
"They have 300 sugar mills, compared with our 41, but they
relocated many of them and diversified production. We want to
call this a 'sugarcane industry' instead of the sugar industry."
    He said sugarcane could be fed to pigs and livestock, used
for thatching roofs, or used in room panelling.
    "When you cut sugarcane you don't even have to produce
sugar," he said.
    Yulo said the Philippines was lobbying for a renewal of the
International Sugar Agreement, which expired in 1984.
    "As a major sugar producer we are urging them to write a new
agreement which would revive world prices," Yulo said.
    "If there is no agreement world prices will always be
depressed, particularly because the European Community is
subsidising its producers and dumping sugar on the markets."
    He said current world prices, holding steady at about 7.60
cents per pound, were uneconomical for the Philippines, where
production costs ranged from 12 to 14 cents a pound.
    "If the price holds steady for a while at 7.60 cents I
expect the level to rise to about 11 cents a pound by the end
of this year," he said.
    Yulo said economists forecast a bullish sugar market by
1990, with world consumption outstripping production.
    He said sugar markets were holding up despite encroachments
from artificial sweeteners and high-fructose corn syrup.
    "But we are not happy with the Reagan Administration," he
said. "Since 1935 we have been regular suppliers of sugar to the
U.S. In 1982, when they restored the quota system, they cut
ours in half without any justification."
    Manila was keenly watching Washington's moves to cut
domestic support prices to 12 cents a pound from 18 cents.
    The U.S. Agriculture Department last December slashed its
12 month 1987 sugar import quota from the Philippines to
143,780 short tons from 231,660 short tons in 1986.
    Yulo said despite next year's increased production target,
some Philippine mills were expected to shut down.
    "At least four of the 41 mills were not working during the
1986/87 season," he said. "We expect two or three more to follow
suit during the next season."


.I 15829
.C
dlr;money-fx;
.W
JAPAN SETS ASIDE YEN FUNDS TO PREVENT DLR FALL.
    TOKYO, March 27 - The 50-day provisional 1987/88 budget,
adopted today by the government, allows the Finance Ministry to
issue up to 14,600 billion yen worth of foreign exchange fund
financing bills, government sources said.
    Foreign exchange dealers said the yen funds would be used
to buy dollars, to prevent a further dollar fall.
    The government sources said the amount, covering the first
50 days of the year starting April 1, accounts for more than 90
pct of the 16,000 billion yen in bills incorporated in the full
budget.


.I 15831
.C
acq
.W
MITSUBISHI BUYS INTO DANISH DAIRY PRODUCT FIRM.
    TOKYO, March 27 - Mitsubishi Corp <MITT.TOK> said it has
taken a 25 pct stake worth five mln krone in <Danish Dairy
Farms Ltd> and will jointly market its produce from April.
    The company was set up last year by three major Danish
livestock cooperative federations to expand markets for their
dairy products, a Mitsubishi official said.
    This is the first time a Japanese trading house has traded
non-Japanese dairy products in the world market, he said.
    He said Mitsubishi expects the Danish company's annual
sales to be 10 billion yen in its first year, from April 1.


.I 15832
.C
acq
.W
JAPAN ACTS TO COOL U.S. ANGER ON TELECOMS DISPUTE.
    TOKYO, March 27 - Japan has sought to assure the U.S. It is
not trying to keep foreign equity in a new Japanese
international telecommunications company below the legal limit
of 33 pct, a Post and Telecommunications ministry official
said.
    In a letter sent yesterday, Postal Minister Shunjiro
Karasawa told U.S. Commerce Secretary Malcolm Baldrige that the
ministry does not object to foreign participation by those U.S.
Firms that have expressed interest.
    But it does oppose any foreign international
telecommunications carrier having a management role, he said.
    The move appears to be an effort to dampen U.S. Opposition
to the planned merger of two rival firms seeking to compete
with the current monopoly <Kokusai Denwa Denshin Co Ltd>, and
to reduce the share held in any KDD rival by U.K.'s Cable and
Wireless Plc <CAWL.L>, industry analysts and diplomats said.
    One of the rival firms, <International Telecom Japan Inc>
(ITJ) has offered a stake in the company to eight U.S. Firms
including General Electric Co <GE>, Ford Motor Co <F> and
Citibank NA <CCI), and two European companies, ITJ president
Nobuo Ito said yesterday.
    Cable and Wireless holds a 20 pct share in a second
potential KDD rival, <International Digital Communications
Planning Inc>, along with <C Itoh and Co>. Merrill Lynch and Co
Inc <MER> and Pacific Telesis International Inc <PAC>, both of
the U.S., Hold three and 10 pct shares respectively.
    The Post and Telecommunications Ministry has urged the
merger of the two firms because it says the market can only
support a single KDD competitor.
    It has also rejected management participation by an
international common carrier, such as Cable and Wireless,
arguing no international precedent for such a stake exists.
    Cable and Wireless Director of Corporate Strategy, Jonathan
Solomon, yesterday again told ministry officials he opposes a
merger proposal that would limit Cable and Wireless' share to
less than three pct and total foreign participation to about 20
pct, the ministry official said.
    Channeling the U.S. Firms into a single merged competitor
would most probably result in diluting Cable and Wireless'
share, industry analysts said.
    "Eventually the ministry will get what it wants -- one
combined competitor," Bache Securities (Japan) Ltd analyst
Darrell Whitten said.
    "Political ... Leverage may get the total foreign share up
to a certain amount, but you won't find any one company with an
extraordinarily large holding," Whitten said.
    Western diplomatic sources were more blunt.
    "They (the ministry) don't want to see Cable and Wireless
with a reasonable share and they think of all sorts of
strategies to reduce that share," one said.
    Fumio Watanabe, a senior Keidanren (a leading business
organization) official who has been trying to arrange the
merger, will present a new outline of his proposal on Thursday,
the ministry official said.


.I 15834
.C
acq
.W
ASSOCIATED NEWSPAPERS HAS 10 PCT OF NORTHERN STAR.
    SYDNEY, March 27 - <Northern Star Holdings Ltd> said
Britain's <Associated Newspapers Holdings Plc> will hold 9.99
pct of its enlarged issued capital after applying to acquire
15.9 mln shares in its recently announced placement.
    Associated was one of the major investors participating in
the previously reported placement of 128.9 mln shares at 3.75
dlrs each, Northern Star said in a statement.
    The northern New South Wales regional group is emerging as
a national media force in the wake of the industry
restructuring sparked by the News Corp Ltd <NCPA.S> takeover of
the Herald and Weekly Times Ltd <HWTA.S> group.
    Associated now holds 3.3 pct of Northern Star's current
issued capital, a company official said.
    As previously reported, Northern Star is raising 623 mln
dlrs through placements and a subsequent one-for-four rights
issue at 2.95 dlrs a share.
    Of the placements, 56.9 mln shares will go to a number of
investors and 72 mln to investment group <Westfield Capital
Corp Ltd>, which arranged Northern Star's purchase of News
Corp's television assets, three newspapers and three radio
stations for 842 mln dlrs. Westfield will increase its stake in
Northern Star to about 45 pct from 20 as a result.


.I 15835
.C
ipi
.W
BELGIAN DECEMBER INDUSTRIAL OUTPUT FALLS.
    BRUSSELS, March 27 - Industrial production, excluding
construction and adjusted for the number of working days, fell
1.5 pct in December from year earlier levels, the National
Statistics Office said.
    It was also a sharp 16.8 pct below the November level, it
said.
    The office said the production index, base 1980, stood at
97.3 in December against an adjusted 116.9 in November and 98.8
in December 1985.


.I 15836
.C
iron-steel
.W
TWO JAPANESE STEELMAKERS' CAPITAL SPENDING FALLS.
    TOKYO, March 27 - Kawasaki Steel Corp <KAWS.T> said its
parent company's capital spending in the year from April 1 will
fall to 75 billion yen from 110 billion in the current year,
and Sumitomo Metal Industries Ltd <SMIT.T> said its capital
spending will drop to 70 billion yen from 85 billion.
    Both companies said they do not plan to start new large
construction projects linked to production increases in the
coming year, because of the yen's appreciation and slow world
steel demand.


.I 15839
.C
earn
.W
AVANA DEFENCE DOCUMENT FORECASTS PROFITS RISE.
    LONDON, March 27 - <Avana Group Plc>, defending itself
against a bid from Ranks Hovis McDougall Plc <RHML.L>, RHM,
forecast a 3.4 mln stg rise in profits in the 1986/87 year.
    It said pretax profit should rise to 23.0 mln stg in the
year to April 2, 1987 from 19.6 mln previously, and reach 27.5
mln in 1987/88. It expects share earnings to rise to 46.9p from
38.7p and to 51.2p in 1987/88, and the 1986/87 dividend to be
17.0p net, a 41.6 pct increase.
    The bid from RHM, rejected by the food and bakery group, is
worth about 270 mln stg. RHM currently has a 22.9 pct stake in
purchases and acceptances.


.I 15840
.C
grain;corn;
.W
TAIWAN BUYS 340,000 TONNES OF U.S. MAIZE.
    TAIPEI, March 27 - The joint committee of Taiwan's maize
importers awarded contracts to five U.S. Companies for seven
shipments totalling 340,000 tonnes of maize for delivery
between September 1 and December 20, a committee official said.
    United Grain Corp of Oregon won two contracts for the
supply of 110,000 tonnes, priced between 92.44 and 96.00 dlrs
per tonne, for September 1-15 and November 5-20 delivery.
    Cargill Inc of Minnesota also took two shipments totalling
110,000 tonnes, priced between 93.45 and 94.65 dlrs per tonne,
for October 1-15 and December 5-20 delivery.
    ADM Export Co of Minnesota received a 54,000 tonne cargo,
at 93.75 dlrs per tonne, for November 1-15 delivery.
    Cigra Inc of Chicago won a contract to supply 33,000
tonnes, at 96.89 dlrs per tonne, for November 25-December 10
delivery.
    Elders Grain Inc of Kansas took a 33,000 tonne shipment, at
96.06 dlrs per tonne, for December 1-15 delivery.
    All shipments are c and f Taiwan.


.I 15842
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG.
    LONDON, March 27 - The Bank of England said it forecast a
shortage of around 700 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands will drain some 501 mln stg while a rise in
note circulation and bankers' balances below target will take
out around 285 mln stg and 45 mln stg respectively.
    Partly offsetting these outflows, exchequer transactions
will add some 120 mln stg to the system today.


.I 15843
.C
alum
.W
JAPAN ALUMINIUM OUTPUT FALLS IN FEBRUARY.
    TOKYO, March 27 - Japanese aluminium output fell to 5,298
tonnes in February from 7,472 in January and 14,280 a year
earlier, preliminary International Trade and Industry Ministry
figures show.
    Output fell sharply from a year ago as most aluminium firms
stopped smelting in the past year due to cheap imports,
industry sources said.
    Sales and end-month stocks in tonnes were:
            Feb 87   Jan 87   Feb 86
    Sales   36,557   38,678   75,687
    Stocks  53,248   56,620  127,083


.I 15844
.C
dlr;money-fx;
.W
****** Bank of France buying dollars for yen - banking sources.
Blah blah blah.

.I 15845
.C
alum
.W
JAPAN ALUMINIUM IMPORTS RISE IN FEBRUARY.
    TOKYO, March 27 - Japanese primary aluminium imports rose
to 98,170 tonnes in February from 91,157 in January and 94,926
a year earlier, the Japan Aluminium Federation said.
    This brought total imports in 1986/87, ending March 31, to
1.09 mln tonnes against 1.25 mln a year earlier.
    The February total included 19,102 tonnes from the U.S.
Against 16,577 in January and 9,933 a year ago, 24,391 from
Australia against 19,585 and 21,208, and 12,611 from Indonesia
against 5,891 and 16,601.


.I 15849
.C
earn
.W
MITSUBISHI MOTORS AUSTRALIA MAKES 19 MLN DLR LOSS.
    ADELAIDE, March 27 - <Mitsubishi Motors Australia Ltd>
(MMAL) reported a 19.64 mln dlr net loss in calendar 1986 from
a 5.80 mln dlr profit in 1985 on turnover of 837.79 mln dlrs
from 942.89 mln.
    MMAL, 99 pct-owned by Mitsubishi Motors Corp <MIMT.T> and
Mitsubishi Corp <MITT.T>,  said a tight market meant it had
failed to recover 19 mln dlrs in costs sustained because of a
weak Australian dollar.
    The company said its Magna car dominated its market segment
with sales of 30,500 units against 26,900 in 1985. Total sales
were 64,100, down 15,900.
    In addition, export of components to Japan increased with
15 mln dlrs invested in 1986 to expand output of aluminium
cylinder heads to 26,000 per month from 6,000, MMAL said.
    Imported passenger car, light commercial and heavy vehicle
sales suffered while local-manufacturing profitability was
eroded by sales substantially below production capacity, it
said.
    Australian car sales fell to 530,000 in 1985 from 696,000
in 1985, although MMAL said it lifted its market penetration to
12.1 pct from 11.5 pct.
    No dividend was recommended.


.I 15851
.C
veg-oil;rape-oil;
.W
INDIA BUYS 20,000 TONNES OF RAPESEED OIL.
    LONDON, March 27 - The Indian State Trading Corporation
(STC) bought a 20,000 tonne cargo of optional origin rapeseed
oil at its vegetable oil import tender yesterday, traders said.
The oil was for June 20/July 20 shipment at 321 dlrs per tonne
cif.
    Traders said the STC attempted to buy eight cargoes of
processed palm oil but its price ideas were too low for
exporters. It also failed to secure soyoil for the same reason,
they said.


.I 15853
.C
tin
.W
THAI TIN EXPORTS FALL IN FEBRUARY.
    BANGKOK, March 27 - Thailand exported 1,120 tonnes of tin
metal in February, down from 1,816 tonnes the previous month
and 2,140 tonnes a year ago, the Mineral Resources Department
said.
    It said major buyers last month were Britain, Japan, the
Netherlands, West Germany and the U.S.


.I 15855
.C
carcass
.W
BOTSWANA BANS ZIMBABWE MEAT PRODUCTS, AGENCY SAYS.
    GABORONE, March 27 - Botswana has stopped importing almost
all meat products from Zimbabwe after reports of a suspected
outbreak of foot and mouth disease in the neighbouring country.
    Botswana's official news agency, BOPA, announcing the ban
last night, quoted Agriculture Minister Daniel Kwelagobe as
saying only sterilised and canned animal products would be
allowed into the country, with immediate effect.
    He said Zimbabwean veterinary officials had notified him
that they suspected foot and mouth disease had broken out at
Insiza, 100 km northeast of Bulawayo, capital of the mainly
cattle-ranching southwestern province of Matabeleland.
    Zimbabwean officials were not immediately available for
comment.
    The ban will affect products such as uncanned meat, milk,
ham, butter and bacon, BOPA reported.
    Botswana exports much of its high-grade beef to the
European Community and augments its local supplies with meat
imports from Zimbabwe.


.I 15856
.C
acq
.W
ALCAN AUSTRALIA BIDS FOR ALCAN NEW ZEALAND.
    SYDNEY, March 27 - Alcan Australia Ltd <AL.S> said it will
make a 39.3 mln N.Z. Dlr cash bid for all the issued shares of
<Alcan New Zealand Ltd> at 1.80 N.Z. Dlrs each with a
four-for-three share alternative.
    Both are 70 pct owned by Canada's Alcan Aluminium Ltd <AL>
which will take the share swap option, Alcan Australia deputy
chairman Jeremy Davis said in a statement. The remainder of
Alcan New Zealand's totalled issued 21.84 mln shares are
broadly held while Alcan Australia's are primarily held by
institutions. Alcan NZ last traded at 1.55 NZ dlrs, while Alcan
Australia today ended four cents down at 1.15 dlrs.
    Davis said the offer, which is subject to approval by the
New Zealand Overseas Investment Commission, was a response to
the integration of the two countries' markets under the
Australia-New Zealand Closer Economic Relations treaty.
    Alcan New Zealand shareholders who accept the offer would
also receive the final dividend of 10 cents a share normally
payable on May 27.
    Alcan Australia would invite New Zealand representation to
its board and would apply to list its shares on the New Zealand
Stock exchange, Davis said.


.I 15858
.C
dlr;money-fx;
.W
****** Bundesbank bought dollars against yen in Frankfurt - dealers.
Blah blah blah.

.I 15859
.C
earn
.W
ESSILOR INTERNATIONAL <ESSI.PA> YEAR ENDED DEC 31.
    PARIS, March 27 -
    Provisional consolidated net attributable profit 242.1 mln
francs vs 240.1 mln.
    Investments 318 mln vs 317 mln.
    Dividend on ordinary shares 45 francs vs 42 francs.
    Dividend on priority shares 51 francs vs 48 francs.


.I 15860
.C
grain;corn;
.W
SOUTH AFRICAN MAIZE ESTIMATE CALLED CONSERVATIVE.
   JOHANNESBURG, March 27 - The South African government's
maize production estimate of 7.8 mln tonnes for the current
year is "rather too conservative," leading grain and produce
merchants Kahn and Kahn Pty Ltd said.
    The company, in a detailed report, estimated the harvest as
high as 8.3 mln tonnes and said if this forecast is met the
ostensible surplus for export will be approximately 2.25 mln
tonnes.
    "This paradoxically is creating a problem for the Maize
Board," Kahn and Kahn said.
    It said the maize export price currently is depressed and
the board is "probably confronted with the necessity to maintain
or slightly increase the internal price of maize again...To
offset the ostensible loss which must be faced" on exporting
surplus amounts.


.I 15861
.C
money-fx;gnp;
.W
ITALIAN 1987 GDP GROWTH FORECAST AT THREE PCT.
    MILAN, March 27 - Italy's gross domestic product (GDP) will
grow three pct in real terms this year and 2.7 pct in 1988,
said economic information company Data Resources Europe Inc
(DRI).
    Michel Girardin, DRI Europe's senior economist, said at a
conference that Italian GDP growth this year "will be mainly
driven by consumption and especially investment."
    Girardin said the driving force behind GDP growth next year
will shift from domestic demand to exports as a result of
expected depreciation of the lira against the major currencies.
    Italy's budget ministry said yesterday that GDP rose 2.7
pct in real terms in 1986.
    DRI forecast that inflation, which was an average 6.3 pct
in 1986, will be under five pct this year and that interest
rates should drop two pct.
    Girardin said the lira is expected to appreciate 14 pct
against the dollar this year following last year's 22 pct
appreciation. An expected German mark appreciation against the
dollar means that the lira should lose about six pct of its
value relative to the German currency, he said.
    DRI estimates that foreign demand for Italian products
should grow by a 3.2 pct this year following last year's 6.2
pct increase.


.I 15862
.C
bop;trade;
.W
TRADE SURPLUS WILL POSE ADDED PRESSURES FOR JAPAN.
    By Kunio Inoue, Reuters
    TOKYO, March 27 - Japan today announced another mammoth
monthly trade surplus that economists said would be sure to
intensify already mounting pressure on the country for action.
    "The world has every reason to be furious with Japan for not
moving more quickly," Jardine Fleming (Securities) Ltd economist
Eric Rasmussen said.
    The Finance Ministry said today that the trade surplus
soared to 8.14 billion dlrs in February from 5.7 billion in
January and 4.77 billion a year ago.
    The current account surplus, which includes trade in
services as well as goods, climbed to 7.38 billion dlrs last
month from 4.95 billion in January and 3.89 billion a year ago.
    After being adjusted for seasonal fluctuations, the figures
look a bit better, but not much. On that basis, the trade
surplus declined slightly in February to 9.16 billion dlrs from
a record 9.58 billion in January.
    "In the medium term we expect this modest improvement to
continue but the pace of progress may be too slow to ward off
further protectionism or further yen strength," said William
Stirling, economist at Merrill Lynch Japan Inc.
    A strong yen would make Japanese goods more expensive on
world markets while making imports into the country cheaper.
    "On a seasonally adjusted basis, we appear to be making some
progress on getting exports down," Jardine's Rasmussen said.
    But imports do not seem to be picking up much because the
Japanese economy remains sluggish, he said.
    Finance Ministry officials blamed last month's slower
import growth on a decline in oil imports as refiners worked
off stocks they had built up in January.
    The officials took comfort from a decline in the volume of
exports last month, after an unexpected year-on-year increase
in January.
    This means the effects of the two-year rise of the yen
against the U.S. Dollar are finally beginning to have an impact
on exports, they said.
    But economists warned that may not be soon enough for
Japan's trading partners.


.I 15863
.C
earn
.W
THYSSEN SEES GOOD 1987 PROFIT DESPITE STEEL LOSSES.
    DUISBURG, West Germany, March 27 - Thyssen AG <THYH.F> said
it expects to post a good profit in 1987 despite anticipated
losses in its mass steel-making operations this year.
    Managing board chairman Dieter Spethmann told the annual
meeting the group was satisfied with profit developments in the
first half of the 1986/87 financial year to September 30.
    The group's other three divisions -- specialty steel,
capital goods and trading -- had made a profit so far in
1986/87, he added.
    Spethmann said income from associate companies had also
been good in early 1986/87.
    In 1985/86 Thyssen's world group profit fell to 370.1 mln
marks from 472.4 mln in 1984/85, reflecting costs linked to its
steel operations. The company's dividend was an unchanged five
marks.
    A Thyssen spokesman told Reuters that planned job cuts at
subsidiary Thyssen Stahl AG would be higher than announced
earlier. Total job losses by 1989 were now expected to total up
to 7,800 against original projections of 5,900. Thyssen Stahl
employs some 40,000 people.


.I 15865
.C
money-fx;dfl;
.W
ECONOMIC SPOTLIGHT - DUTCH EXCHANGE RATE POLICY.
    By Marcel Michelson, Reuters
    AMSTERDAM, March 27 - Recent slackness on Dutch capital
markets has led some bankers to question the Central Bank's
policy of pegging the guilder firmly to the West German mark
and to ask for more flexiblility in exchange rate policy.
    While agreeing with the Bank's commitment to defend the
guilder strongly, some bankers want the Bank to make more use
of the range within which the guilder and the mark can
fluctuate against each other in the European Monetary System
(EMS).
    Roelof Nelissen, chairman of Amsterdam-Rotterdam Bank NV
(Amro) said the Central Bank's policy was overcautious.
    "I would like to suggest that the Bank use more freely the
range given to the guilder in the EMS," Nelissen said at the
presentation of Amro's 1986 annual report last week.
    Within the EMS, the mark is allowed to fluctuate against
the guilder between 110.1675 and 115.235 guilders per 100.
    The Central Bank maintains a stricter policy and tries to
keep the mark below the 113.00 guilders per 100. It regards a
stable exchange rate as its main target, using interest rate
policies to influence the exchange rate.
    The preference of exchange rate goals above interest rate
aims goes almost undisputed in the Netherlands.
    Critics say the Bank keeps the reins unnecessarily short.
    Rabobank Nederland said in its latest economic bulletin: "By
maintaining the 113.00 limit, the Central Bank raises the
expectation it will always intervene above that level. If it
suddenly needs more flexibility it will find it very hard to
obtain."
    Amro's Nelissen said relatively small changes in interest
rates and exchange rates could cause substantial flows of
securities business and sharp fluctuations on the Dutch capital
market. Large interest rate changes were often needed to bring
about small changes in the guilder/mark exchange rate, he
added.
    Unlike Amro, Algemene Bank Nederland NV (ABN) says this is
a price the Dutch have to pay. It fully agrees with the Central
Bank's policy, director-general Julien Geertsema told Reuters,
noting a 1983 decision not to revalue the guilder fully with
the mark in the EMS hurt confidence in the Dutch currency.
    "It is a pity we need such a wide interest rate difference
between West Germany to maintain the exchange rate," he added.
    Interest rate differentials between West Germany and the
Netherlands are the main factors that trigger capital flows
between the two countries, as the economic performance of the
two does not differ much, economists said.
    Data on 1986 capital flows between West Germany and the
Netherlands have not yet been released, but in 1985 they
accounted for only 10 pct of total trade flows between the two
countries, put at 110 billion guilders for 1986 by the
Dutch-German Chamber of Commerce earlier this month.
    Economists say capital flows are more sensitive to interest
and exchange rates.
    West Germany is the Netherlands' largest single trading
partner, taking 28 pct of Dutch exports and providing 26 pct of
imports in the last quarter of 1986, Central Bureau of
Statistics figures show.
    At the moment, the rates for three month euromark deposits
trade around 4.0 pct while the same deposits in guilders have a
rate of around 5-7/16 pct.
    Amro bank argues that the Dutch real interest rate will
even rise further because of expectations of deflation here in
1987, contrasting with slight inflation in West Germany.
    In the Netherlands, the cost of living is expected to
decrease by 1.5 pct at a GNP growth rate of two pct, the Dutch
Central Planning Agency said in its 1987 forecast last month.
German GNP is seen rising by two to 2.5 pct, but with inflation
between zero and 1.0 pct, according to most German forecasts.
    But despite this upward push on real Dutch rates, money
dealers do not expect the Central Bank to cut official rates
independently without prior moves by the Bundesbank.
    Following the West German interest rate cuts on January 22,
the Dutch Central Bank did not lower its rates but set a 0.5
pct lower tariff for special advances and abandoned its credit
surcharge. Most traders were surprised by this move as they had
expected the Bank to follow suit unconditionally, they said.
    The Bank said it lowered the rate with the largest impact
on the money market as far as the exchange rate permitted.
    While not entirely unsympathetic to critics of its
policies, the Central Bank keeps its grip firm and the range
narrow.
    "The European Monetary System is not only a relationship
between the guilder and the mark. Many times widening of the
margin between the two would implicate we have to buy or sell
large amounts of a third currency," Central Bank vice-director
Jan-Hendrik Du Marchie Sarvaas said.
    "If we allowed the guilder to become a little cheaper, the
markets would start to believe it was weak. We don't want that.
We want to make clear that the guilder is just as strong as the
mark," he said.


.I 15868
.C
trade
.W
WORLD BANK CHIEF URGES MORE JAPANESE INVESTMENT.
    TOKYO, March 27 - World Bank President Barber Conable
called on Japan to boost investment in developing nations, for
its own sake as well as that of the world economy.
    "Japan has the means to make a major contribution to
development in the Third World," he told about 500 Japanese
businessmen and academics. "I would be pleased with additional
support."
    With 25 pct of the world's total banking assets, Japan
could do more to help assist indebted Third World countries
develop roads, bridges and other infrastructure, he said.
    Conable said additional commercial bank investment would
also be to Japan's advantage.
    It would profit from rechannelling its huge trade surplus
into Third World economies -- notably those in South America,
China and India -- that are likely to expand faster than those
in the developed world, he said.
    Japan is now the second largest shareholder in the Bank's
concessionary lending affiliate, the International Development
Association (IDA). It has also agreed recently to expand its
contribution to another affiliate, the International Bank for
Reconstruction and Development (IBRD), Conable noted.
    Conable said the World Bank was expanding its structural
adjustment loans, designed to encourage developing countries to
open their economies more to free competition and trade.
    "Adjustment loans could rise to 30 pct (of total World Bank
loans) in the near future, though maybe not this year," Conable
told Reuters after his speech.
    Such loans currently account for slightly over 20 pct.


.I 15869
.C
acq
.W
HENKEL SELLS HAMBURG OIL AND FATS SUBSIDIARY.
    HAMBURG, March 27 - Applied chemicals group Henkel KGaA
<HNKG.F> said it is selling its Hamburg vegetable oil and fats
subsidiary Noblee und Thoerl GmbH to Oelmuehle Hamburg AG.
    A company spokesman declined to give the purchase price.
Noblee, a supplier of specialised refined oils and fats to the
food processing industry, had turnover of 161 mln marks last
year.
    A Henkel statement said the divestment was part of the
company's strategy of concentrating on its core businesses. For
Oelmuehle, the acquisition of Noblee means access to new
markets, the statement added.


.I 15870
.C
earn
.W
<ELDERS RESOURCES LTD> FIRST HALF ENDED DEC 31.
    MELBOURNE, March 27 -
    Net shr 7.6 cents vs 3.0
    Int div 3.0 cents vs nil
    Net 16.93 mln vs 5.47 mln
    Sales 160.14 mln vs 2.35 mln.
    Other income 6.29 mln vs 10.05 mln
    Shrs 223.16 mln vs 183.68 mln.
    NOTE - Two-for-seven non-renounceable rights issue of 8.0
pct five-year subordinated convertible redeemable unsecured
notes at 2.50 dlrs each. Each note is convertible into one
share. Div pay May 1. Div and issue reg April 16.
    Net is after tax 7.04 mln dlrs vs 3.82 mln, interest 2.52
mln vs 1.14 mln, depreciation 2.43 mln vs 123,000 and
minorities 3.41 mln vs 2.91 mln but before net extraordinary
loss 821,000 vs nil.
    Company is owned 46.99 pct by Elders IXL Ltd <ELXA.S>.


.I 15873
.C
trade
.W
NAKASONE TO VISIT WASHINGTON IN LATE APRIL.
    TOKYO, March 27 - Prime Minister Yasuhiro Nakasone will
make an official week-long visit to the United States from
April 29 and hold talks in Washington with President Reagan,
Chief Cabinet Secretary Masaharu Gotoda told reporters.
    Government sources said Nakasone would try to resolve
growing bilateral trade friction and discuss the June Venice
summit of Western industrial democracies.
    Foreign Minister Tadashi Kuranari will accompany Nakasone,
ministry officials said.
    U.S. Industry sources in Washington said the White House
Economic Policy Council was recommending trade sanctions
against Japan for violating the two countries' agreement on
semiconductor trade.
    Under the pact, Japan pledged to stop dumping microchips in
the U.S. And Asia and open its domestic market to U.S.
Semiconductors.


.I 15875
.C
money-fx
.W
BANK OF SPAIN SUSPENDS ASSISTANCE.
    MADRID, March 27 - The Bank of Spain suspended its daily
money market assistance obliging borrowers to take funds from
the second window, where on Wednesday rates were raised to 16
pct compared with 14 pct for normal overnight funds.
    Money market sources said in view of high borrower demand
the suspension was likely to remain in effect until April 3,
the start of the next 10-day accounting period for reserve
requirements. The suspension comes after the Bank yesterday
gave 1,145 billion pesetas assistance, a record high for this
year.
    It said 90 billion pesetas was provided at the second
window.


.I 15876
.C
trade
.W
NAKASONE HARD-PRESSED TO SOOTHE U.S ANGER ON TRADE.
    By Rich Miller, Reuters
    TOKYO, March 27 - Prime Minister Yasuhiro Nakasone will
visit Washington next month in a bid to defuse mounting U.S.
Anger over Japanese trade policies, but Western diplomats said
they believed his chances of success were slim.
    Boxed in by powerful political pressure groups and
widespread opposition to his tax reform plans, Nakasone will be
hard-pressed to come up with anything new to tell U.S.
President Ronald Reagan and key U.S. Congressmen, they said.
    News of the week-long visit starting April 29 coincided
with news that Japan recorded a 8.14 billion dlr trade surplus
last month, more than 70 pct higher than a year earlier.
    It also came one day after the Reagan Administration's
Economic Policy Council decided to take retaliatory action
against Japan for its alleged failure to live up to a joint
trade agreement on computer microchips.
    Nakasone wants to go armed with two separate packages - one
designed to pep up Japan's sagging economy and imports in the
short-term, the other to redirect the country in the medium
term away from its over-dependence on exports for growth.
    But government officials said political infighting could
rob both packages of much of their punch and might even prevent
one from seeing the light of day.
    Nakasone has insisted that the government would not draw up
a package of short-term economic measures until after its
1987/88 budget passed parliament because he feared that would
amount to a tacit admission that the budget was inadequate.
    But his hopes for quick passage of the budget in time for
his trip have been shattered by a parliamentary boycott by
opposition parties protesting over the sales tax plan.
    Faced with the possibility that he might have to go to the
U.S. Virtually empty-handed, Nakasone today ordered his ruling
Liberal Democratic Party (LDP) to come up with its own
measures.
    He can then tell Reagan the LDP package will form the basis
of the government's plans, without losing face in parliament
over the budget, political analysts said.
    Officials working on the government's short-term economic
package said it would probably include interest rate cuts on
loans by government corporations, deregulation, measures to
pass on some of the benefits of the strong yen to consumers in
the form of lower prices, and accelerated public investment.
    They said a record portion of state investment planned for
the entire 1987/88 fiscal year will take place in the first
half, probably over 80 pct.
    Diplomats said that was unlikely to be enough to satisfy
Reagan, who is under pressure from the Democrat-controlled U.S.
Congress to take greater action to cut the huge American trade
deficit.
    To complement the short-term measures, Nakasone is also
likely to present Reagan with details of Japan's longer-term
economic plans.
    A high-ranking advisory body headed by former Bank of Japan
governor Haruo Maekawa is expected to come up with a final
report outlining concrete steps to redirect the economy days
before Nakasone is scheduled to leave for Washington.
    Its recommendations are designed as a follow-up to
Maekawa's report last year on economic restructuring and are
likely to cover such potentially politically explosive areas as
agricultural reform and land policy, officials said.
    While wanting to make the report as explicit and detailed
as possible, they said the political realities might force them
to water down some of the committee's recommendations.
    A subcommittee is considering what the Japanese economy
might look like in the medium to longer term after it undergoes
massive restructuring, officials said. The subcommittee
projects that the current account surplus will fall to less
than two pct of Japan's total output, or gross national
product, around 1993 or 1995. Last year the surplus, which
measures trade in goods and services, amounted to over four pct
of gnp.
    The subcommittee also projects annual economic growth for
Japan of nearly four pct over that period and a very gradual
appreciation of the yen, to about 130 to the dollar by around
1993, from 150 now.


.I 15877
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 265 MLN STG ASSISTANCE.
    LONDON, March 27 - The Bank of England said it provided the
money market with 265 mln stg in assistance this morning.
    This compares with the bank's estimate of the shortage in
the system of 750 mln stg, earlier revised up from 700 mln.
    The central bank purchased bank bills outright comprising
119 mln stg in band one at 9-7/8 pct, 144 mln stg in band two
at 9-13/16 pct and two mln stg in band three at 9-3/4 pct.


.I 15878
.C
dlr;money-fx;
.W
BANK OF JAPAN INTERVENES TO STEM DOLLAR FALL.
    TOKYO, March 27 - The Bank of Japan intervened in the
market to keep the dollar above 149 yen but the unit was under
strong selling pressure by an investment trust, dealers said.
    The central bank stepped into the market when the dollar
fell towards 149.00 yen, but a trust bank aggressively sold
dollars to hedge currency risks, and the Bank intervened again
at 149.00, they said.
    The trust bank apparently changed its earlier view that the
dollar would rise and started selling relatively large amounts
of dollars, pushing the unit down to 148.80 at one point,
brokers said.
    One dealer estimated that the Bank bought 400 mln to 500
mln dlrs as it tried to keep the U.S. Currency above 149 yen.


.I 15879
.C
money-fx
.W
BANK OF FRANCE AGAIN BUYING DOLLARS, SOURCES SAY.
    PARIS, March 27 - The Bank of France intervened in the
Paris foreign exchange market this morning for the third
successive day, banking sources said.
    Like yesterday, it bought dollars and sold yen in small
amounts, they said.
    One dealer said it was seen in the market twice in early
dealing, buying five mln dlrs each time.
    Other dealers also reported small-scale intervention to
stabilise the dollar after aggressive selling overnight in
Tokyo, where the Bank of Japan also intervened again.
    The dollar steadied at around 6.0650/0700 francs after
easing in early trading to 6.0615/35 from an opening 6.0700/50.
It closed yesterday at 6.0800/30.
    One major french bank said it bought 10 mln dlrs for the
central bank, selling yen, within a trading range of 148.20/30
yen to the dollar, compared with yesterday's 149.28 rate at
which intervention was carried out here.
    The yen later firmed to around 147.90/148.00.


.I 15880
.C
money-fx
.W
BUNDESBANK BOUGHT DOLLARS AGAINST YEN, DEALERS SAY.
    FRANKFURT, March 27 - The Bundesbank entered the open
market in the late morning to buy dollars against yen in
concert with the Bank of France, dealers said.
    The Bundesbank came into the market when the dollar was
around 148.10 yen just after it had fallen below 148 to touch
147.80 at 1027 GMT. The move had little effect, with the dollar
still testing 148 yen ahead of the official fixing.
    Dealers said the intervention was for fairly small amounts,
in contrast to the Bundesbank's activity on Wednesday when
dealers reported it bought about 100 mln dlrs.
    The Bundesbank had no comment.


.I 15882
.C
acq
.W
BRIERLEY BIDS 4.35 DOLLARS/SHARE FOR PROGRESSIVE.
    WELLINGTON, March 27 - <Brierley Investments Ltd> (BIL)
launched a full takeover bid for the supermarket group
<Progressive Enterprises Ltd> at 4.35 dlrs a share.
    BIL said in a statement the offer is conditional on minimum
acceptances totalling 30 mln shares, just under 25 pct of the
120.4 mln Progressive shares on issue.
    Progressive is currently involved in a proposed merger with
<Rainbow Corp Ltd>. Rainbow earlier this week raised its stake
in Progressive to 52 pct. BIL opposes the Rainbow merger and
analysts say BIL needs a 25 pct stake in Progressive to prevent
it occurring.
    The merger involves shareholders in Progressive and Rainbow
both receiving shares in a new company <Astral Pacific Corp
Ltd> on a one-for-one exchange basis.
    The BIL bid is higher than the 4.20 dlrs BIL said it would
offer when it first announced on Monday it would make a full
bid for Progressive, and it follows much public debate between
BIL and Rainbow.
    BIL Chief Executive Paul Collins said last week that he
opposes the Rainbow/Progressive merger because BIL sees
Progressive shares as being worth twice as much as Rainbow's.
BIL has not disclosed how many Progressive shares it holds.
    Rainbow has said the merger is soundly based. Chairman
Allan Hawkins said last week that BIL's actions were aimed only
at dirsrupting the merger and were not in the interests of
Progressive shareholders.
    Both Rainbow's and Progressive's boards have approved the
merger proposal. It has also been approved by the Commerce
Commission, but BIL's bid is still subject to the Commission's
scrutiny.
    Progressive shares ended at 4.35 dlrs, Rainbow at 3.42 and
BIL at 4.17 at the close of New Zealand Stock Exchange trading
today.


.I 15883
.C
bop;trade;
.W
****** S. African Feb trade surplus 1.62 billion rand vs Jan surplus 906.2 mln - official.
Blah blah blah.

.I 15885
.C
dlr;money-fx;yen;
.W
JAPAN SETS ASIDE YEN FUNDS TO PREVENT DLR FALL.
    TOKYO, March 27 - The 50-day provisional 1987/88 budget,
adopted today by the government, allows the Finance Ministry to
issue up to 14,600 billion yen worth of foreign exchange fund
financing bills, government sources said.
    Foreign exchange dealers said the yen funds would be used
to buy dollars, to prevent a further dollar fall.
    The government sources said the amount, covering the first
50 days of the year starting April 1, accounts for more than 90
pct of the 16,000 billion yen in bills incorporated in the full
budget.


.I 15888
.C
sugar
.W
SUGAR MARKET SEES GOOD RECENT OFFTAKE.
    By Peter Read
    LONDON, March 27 - Reports the Soviet Union has lately
extended its recent buying programme by taking five to eight
raws cargoes from the free market at around 30/40 points under
New York May futures highlight recent worldwide demand for
sugar for a variety of destinations, traders said.
    The Soviet buying follows recent whites buying by India,
Turkey and Libya, as well as possible raws offtake by China.
    Some 300,000 to 400,000 tonnes could have changed hands in
current activity, which is encouraging for a sugar trade which
previously saw little worthwhile end-buyer enquiry, they added.
    Dealers said a large proportion of the sales to the Soviet
Union in the past few days involved Japanese operators selling
Thai origin sugar.
    Prices for nearby shipment Thai sugars have tightened
considerably recently due to good Far Eastern demand, possibly
for sales to the Soviet Union or to pre-empt any large block
enquiries by China, they said.
    Thai prices for March/May 15 shipments have hardened to
around 13/14 points under May New York from larger discounts
previously, they added.
    Traders said the Soviet Union might be looking to buy more
sugar in the near term, possibly towards an overall requirement
this year of around two mln tonnes. It is probable that some
1.8 mln tonnes have already been taken up, they said.
    Turkey was reported this week to have bought around 100,000
tonnes of whites while India had further whites purchases of
two to three cargoes for Mar/Apr at near 227 dlrs a tonne cost
and freight and could be seeking more. Libya was also a buyer
this week, taking two cargoes of whites which, for an
undisclosed shipment period, were reported priced around
229/230 dlrs a tonne cost and freight, they added.
    Futures prices reacted upwards to the news of end-buyer
physicals offtake, although much of the enquiry emerged
recently when prices took an interim technical dip, traders
said.
    Pakistan is lined up shortly to buy 100,000 tonnes of
whites although traders said the tender, originally scheduled
for tomorrow, might not take place until a week later.
    Egypt will be seeking 20,000 tonnes of May arrival white
sugar next week, while Greece has called an internal EC tender
for 40,000 tonnes of whites to be held in early April, for
arrival in four equal parts in May, June, July and August.


.I 15889
.C
money-fx
.W
******BANK OF FRANCE BUYS DOLLARS AT PARIS FIXING - DEALERS.
Blah blah blah.

.I 15891
.C
dlr;money-fx;
.W
****** swiss national bank says bought dollars against yen.
Blah blah blah.

.I 15892
.C
acq
.W
UNION MINIERE TAKES STAKE IN PANCONTINENTAL.
    BRUSSELS, March 27 - <Union Miniere SA> said in a statement
that it has acquired an eight pct interest in Pancontinental
Mining Ltd <PANA.S> for a sum equivalent to 1.2 billion Belgian
francs.
    Pancontinental operates gold and coal mines in Australia
and natural gas and oil fields in Canada.
    Union Miniere said the location of its interest within the
Pancontinental group will be decided later. It did not
elaborate.
    Union Miniere is a wholly owned subsidiary of Societe
Generale de Belgique <BELB.BR>.


.I 15893
.C
bop;trade;
.W
S. AFRICAN TRADE SURPLUS RISES SHARPLY IN FEBRUARY.
    JOHANNESBURG, March 27 - South Africa's trade surplus rose
to 1.62 billion rand in February after falling to 906.2 mln in
January, Customs and Excise figures show.
    This compares with a year earlier surplus of 958.9 mln
rand.
    Exports rose slightly to 3.36 billion rand in February from
3.31 billion in January but imports fell to 1.74 billion from
2.41 billion.
    This brought total exports for the first two months of 1987
to 6.67 billion rand and imports to 4.15 billion for a total
surplus of 2.52 billion rand against 1.71 billion a year
earlier.


.I 15894
.C
sugar;carcass;
.W
EC EXTENDS PARTS OF FREE FOOD FOR POOR SCHEME.
     BRUSSELS, March 27 - A scheme to distribute surplus food
free to the poor in the European Community (EC), which was due
to expire next Tuesday, will be partially extended for a
further month, an EC Commission spokesman said.
    He added the executive Commission has not yet decided
whether the scheme should become a permanent feature of the
EC's struggle to find a use for its massive stocks of farm
produce.
    Almost 60,000 tonnes of cereals, sugar, beef, butter and
other food have been authorised for distribution under an
operation sanctioned by EC farm ministers on January 20 in
which charities act as executive Commission agents.
    The original idea was to help the needy survive this year's
unusually cold European winter.
    The spokesman said the Commission was extending the scheme
fully in Greece, which has recently been hit by unseasonal
snowstorms, for the month of April.
    Other EC countries would be authorised to use stocks of
food for which they have already applied under the scheme up to
April 30. The spokesman said this would enable distribution of
flour, semolina, sugar and olive oil at a relatively high rate
next month.
    He said the Commission, which has powers to continue most
aspects of the scheme without consulting ministers further,
will be considering soon whether it should be made permanent.
    Cost, which has already reached around 65 mln European
currency units, would be a major consideration.
    End-January stocks included 1.28 mln tonnes of butter,
520,000 tonnes of beef and over 10 mln tonnes of cereals.


.I 15896
.C
trade
.W
INDIA STEPS UP COUNTERTRADE DEALS TO CUT TRADE GAP.
    By Ajoy Sen, Reuters
    NEW DELHI, March 27 - India is searching for non-communist
countertrade partners to help it cut its trade deficit and
conserve foreign exchange.
    Wheat, tobacco, tea, coffee, jute, engineering and
electronic goods, as well as minerals including iron ore, are
all on offer in return for crude oil, petroleum products,
chemicals, steel and machinery, trade sources told Reuters.
    Most of the impetus behind countertrade, which began in
1984, comes from two state trading firms -- the State Trading
Corp (STC) and the Minerals and Metals Trading Corp (MMTC).
    "The two state trading corporations are free to use their
buying power in respect to bulk commodities to promote Indian
exports," a commerce ministry spokeswoman said, adding that
private firms are excluded from countertrading.
    One trade source said India has targetted countries that
depend on an Indian domestic market recently opened to foreign
imports.
    However, countertrade deals still make up only a small part
of India's total trading and are likely to account for less
than eight pct of the estimated 18.53 billion dlrs in trade
during the nine months ended December, the sources said.
    Countertrade accounted for just five pct of India's 25.65
billion dlrs in trade during fiscal 1985/86 ended March,
against almost nothing in 1984/85, official figures show.
    However, the figures exclude exchanges with the Eastern
Bloc paid in non-convertible Indian rupees, the sources said.
    Total trade with the Soviet Union, involving swaps of
agricultural produce and textiles for Soviet arms and crude
oil, is estimated at 3.04 billion dlrs in fiscal 1986/87,
against three billion in 1985/86.
    Indian countertrade, which is being promoted mainly to help
narrow the country's large trade deficit, is still
insignificant compared with agreements reached by Indonesia,
Venezuela and Brazil, the trade sources said.
    The trade deficit, which hit an estimated record 6.96
billion dlrs in 1985/86, is expected to decline to 5.6 billion
in the current fiscal year.
    But the push to include non-communist countries in
countertrade is also due to other factors, including the slow
growth of foreign reserves, a tight debt repayment schedule,
shrinking aid and trade protectionism, businessmen said.
    One source said India is showing more dynamism in promoting
countertrade deals than in the past, when the deals were made
discreetly because they break GATT rules. As a member of the
General Agreement on Tariffs and Trade (GATT), India cannot
officially support bartering.
    The MMTC's recent countertrade deals include iron ore
exports to Yugoslavia for steel structures and rails.
    "MMTC's recent global tenders now include a clause that
preference will be given to parties who accept payment in kind
for goods and services sold to India," a trade official said,
adding that the policy remains flexible.
    "We also take into account other factors such as prices at
which the goods and services are offered to India," the trade
official said.
    Early this year the commerce ministry quietly told foreign
companies interested in selling aircraft, ships, drilling rigs
and railway equipment to India that they stood a better chance
if they bought Indian goods or services in return, the trade
sources said.
    Illustrating the point, the official said a South Korean
firm recently agreed to sell a drilling platform worth 40 mln
dlrs to the state-run Oil and Natural Gas Commission.


.I 15897
.C
bop;trade;
.W
JAPAN FEBRUARY CURRENT ACCOUNT, TRADE SURPLUS JUMP.
    TOKYO, March 27 - Japan's current account surplus rose to
7.38 billion dlrs in February from 3.89 billion a year ago and
from 4.95 billion in January, the Finance Ministry said.
    The trade surplus rose to 8.14 billion dlrs in February
from 4.77 billion a year earlier and 5.70 billion in January.
    The long-term capital account deficit widened to 11.40
billion dlrs from 8.06 billion a year ago, but it narrowed from
12.32 billion in January, the Ministry said.
    Japan's February exports rose to 16.74 billion dlrs from
14.89 billion in February 1986 and from 14.65 billion in
January, the Ministry said. Imports fell to 8.61 billion from
10.12 billion a year earlier and 8.94 billion in January.
    The invisible trade deficit fell to 617 mln dlrs in
February from 693 mln a year earlier, but was up from a 527 mln
deficit in January.
    Figures do not tally exactly because of rounding.
    Transfer payments narrowed to a 140 mln dlr deficit last
month from a 185 mln deficit a year earlier and a 225 mln
deficit in January.
    The basic balance of payments deficit in February fell to
4.02 billion dlrs from 4.17 billion in February 1986 and 7.37
billion in January. Short-term capital account payments swung
to a 1.28 billion dlr deficit in February from a 1.60 billion
surplus a year earlier and a 1.44 billion dlr surplus in
January.
    Errors and omissions were 2.65 billion dlrs in surplus,
compared with a 1.27 billion surplus a year earlier and a 1.10
billion deficit in January. The overall balance of payments
deficit rose to 2.65 billion dlrs from 1.30 billion a year
earlier but was down from 7.04 billion in January.


.I 15898
.C
cpi
.W
JAPAN CONSUMER PRICES UNCHANGED IN FEBRUARY.
    TOKYO, March 27 - Japan's consumer price index (base 1985)
was unchanged at 99.7 in February from a month earlier, the
government's Management and Coodination Agency said.
    The index showed a 0.4 pct drop in January.
    The February index was down one pct from a year earlier for
the third consecutive year-on-year drop.
    In January, the index fell 1.1 pct from a year earlier, the
first drop of over one pct since a 1.3 pct drop in September
1958.


.I 15902
.C
earn
.W
COSTCO WHOLESALE CORP <COST> 2ND QTR FEB 16 NET.
    SEATTLE, March 27 -
    Oper shr five cts vs six cts
    Oper net 1,100,000 vs 1,463,000
    Revs 177.8 mln vs 331.5 mln
    Avg shrs 21.9 mn vs 25.7 mln
    First half
    Oper shr six cts vs five cts
    Oper net 1,121,000 vs 1.090,000
    Revs 315.3 mln vs 567.4 mln
    Avg shrs 20.6 mln vs 25.6 mln
    NOTE: Operating net excludes gains of 659,000 dlrs, or
three cts a share, vs 599 dlrs, or two cts a share, in quarter
and 676,000 dlrs, or three cts a share, vs 599,000 dlrs, or two
cts a share, in year from tax loss carryforward.


.I 15903
.C
dlr;money-fx;
.W
SWISS NATIONAL BANK SAYS IT BOUGHT DOLLARS.
    ZURICH, March 27 - The Swiss National Bank bought dollars
against yen today, a spokesman for the bank said.
    He declined to say how many dollars the bank bought or when
precisely it intervened.
    Swiss foreign exchange dealers described the National
Bank's purchases as modest, perhaps amounting to no more than
20 or 30 mln dlrs.
    The Bank of France, which was reported buying dollars
against the yen in Paris, had made inquiries with Swiss banks
as well, and the Bundesbank had also intervened. Bank of Japan
dollar purchases today were perhaps 1.2 to 1.5 billion dlrs.
    Dealers said this tended to confirm the market's impression
that major industrial countries had agreed at the Paris meeting
on an effective floor for the dollar of 148 yen, and the market
seemed ready to test it.
    Commercial clients were also selling dollars against the
yen as the end of the Japanese fiscal year on March 31 drew
closer. Today's dealings in spot currencies are booked for
March 31.
    One dealer said he had the feeling Japanese companies had
been asked by the Bank of Japan not to sell dollars at this
point, but some, while sticking to the letter of that request,
were offering dollars forward today, rather than lose out if
the dollar fell further.
    The run on the dollar against the yen came in a market
thinned by the absence of many dealers for a Forex Club meeting
in Hamburg.
    Trading was, in fact, rather light against currencies other
than the yen, the dollar holding little changed through the
day.
    The market now expected the U.S. Federal Reserve to
intervene in support of the dollar. "But they will probably do
it only half-heartedly, so I don't think it will matter too
much on rates," one dealer said.


.I 15905
.C
cpi
.W
******U.S. FEBRUARY CONSUMER PRICES ROSE 0.4 PCT AFTER 0.7 PCT RISE IN JANUARY.
Blah blah blah.

.I 15906
.C
cpi
.W
U.S. CONSUMER PRICES ROSE 0.4 PCT IN FEBRUARY.
    WASHINGTON, March 27 - U.S. consumer prices, as measured by
the Consumer Price Index for all urban consumers (CPI-U), rose
a seasonally adjusted 0.4 pct in February after a 0.7 pct
January gain, the Labor Department said.
    The CPI for urban wage earners and clerical workers (CPI-W)
rose to 329.0 in February, the department said.
    Prices for petroleum-based energy rose sharply for a second
consecutive month during February but by less than in January,
the department said.
    Energy prices rose 1.9 pct last month after a 3.0 pct rise
in January, accounting for one-third of the overall CPI rise.
    For the 12 months ended in February, the CPI rose an
unadjusted 2.1 pct.
    Transportation prices rose 0.5 pct in February after a 1.5
pct increase in January. Smaller price rises for motor fuels
and declines in new car prices and finance charges were
responsible for the moderation.
    Gasoline prices rose 4.2 pct last month after increasing
6.6 pct in January, but were still 18 pct below levels of a
year ago, the department said.
    Housing prices rose 0.4 pct in February after a 0.5 pct
January increase, largely due to a rise in fuel oil prices.
    Fuel oil prices were up 4.4 pct in February after
increasing 9.8 pct in January, but were still 15 pct below
price levels of February 1986.
    Food prices rose 0.2 pct last month after a 0.5 pct January
increase. Grocery store food prices were up 0.4 pct, the same
as in January, but meat, poultry, fish and eggs cost less for a
third consecutive month, the department said.
    Medical care rose 0.3 pct in February to a level 7.1 pct
above one year ago, because of higher costs for prescription
and non-prescription drugs and medical supplies, the department
said.
    The index for apparel and upkeep rose 0.7 pct in February
after a 0.4 pct increase in January. The department said the
introduction of higher priced spring merchandise, particularly
men's clothing, was responsible for the advance.
    Prices for other goods and services rose 0.7 pct in
February following a 1.1 pct increase in January. Tobacco
prices, up 0.9 pct after a 2.0 pct January increase, accounted
for 30 pct of the index rise, the department said.


.I 15908
.C
earn
.W
MACMILLAN BLOEDEL <MMB> STOCK SPLIT APPROVED.
    VANCOUVER, British Columbia, March 27 - MacMillan Bloedel
Ltd said shareholders authorized a previously announced
three-for-one stock split, applicable to holders of record
April nine.
    The company said its stock will begin trading on a split
basis on April 3, subject to regulatory approvals.


.I 15909
.C
ship
.W
STORMY WEATHER TO DISRUPT NORTH SEA SHIPPING.
    STATE COLLEGE, PA., March 27 - Very stormy weather is
likely in the North Sea through Saturday, disrupting shipping
in the region, private forecaster Accu-Weather Inc said.
    Rain will accompany the strong winds that are expected over
the North Sea today into tonight. Saturday will also be very
windy and cooler with frequent showers.
    Winds today will be southwest at 30 to 60 mph, but will
become west to northwest tonight and Saturday at 25 to 50 mph.
    Waves will build to 20 to 30 feet today and tonight and
continue Saturday. Wind and waves will not diminish until late
in the weekend.


.I 15911
.C
earn
.W
******NATIOONAL MEDICAL ENTERPRISES INC 3RD QTR OPER SHR 46 CTS VS 51 CTS.
Blah blah blah.

.I 15912
.C
ship
.W
LIBERIAN SHIP GROUNDED IN SUEZ CANAL REFLOATED.
    LONDON, March 27 - A Liberian motor bulk carrier, the
72,203 dw tonnes Nikitas Roussos, which was grounded in the
Suez canal yesterday, has been refloated and is now proceeding
through the the canal, Lloyds Shipping Intelligence said.


.I 15914
.C
earn
.W
NATIONAL MEDICAL ENTERPRISES INC <NME> 3RD QTR.
    LOS ANGELES, March 27 - Periods ended Feb 28
    Oper shr 46 cts vs 51 cts
    Oper shr diluted 43 cts vs 50 cts
    Oper net 34.2 mln vs 39.8 mln
    Revs 823.3 mln vs 794.3 mln
    Avg shrs 74.9 mln vs 78.7 mln
    Nine mths
    Oper shr 1.29 dlrs vs 1.46 dlrs
    Oper shr diluted 1.20 dlrs vs 1.43 dlrs
    Oper net 99.4 mln vs 114.5 mln
    Revs 2.50 billion vs 2.22 billion
    Avg shrs 77.0 mln vs 78.3 mln
    NOTE: Year ago nine months operating net excludes loss of
2.0 mln dlrs, or two cts a share, from discontinued operations


.I 15915
.C
ship
.W
ABIDJAN PORT ACTIVITY RISES.
    ABIDJAN, March 27 - The tonnage of goods passing through
Ivory Coast's main port of Abidjan rose 2.3 pct last year,
according to the Ivorian Chamber of Commerce.
    Its monthly report said 9.47 mln tonnes of goods passed
through the port last year compared with 9.26 mln the year
before. Exports fell to 3.75 mln from 3.89 mln tonnes while
imports rose to 5.72 mln from 5.37 mln.


.I 15916
.C
ship;crude;
.W
PAPANDREOU SAYS GREEKS READY FOR AGGRESSORS.
    ATHENS, March 27 - Greek Prime Minister Andreas Papandreou
said today that the Greek armed froces were ready to tackle any
aggressors following the sailing of a Turkish research vessel
and warships towards disputed waters in the Aegean Sea.
    Papandreou told an emergency cabinet meeting in Athens "the
military readiness of our country is able now to give a very
hard lesson if our neighbours (Turkey) were to carry out
military actions."
    He said the activities of the research vessel could be
aimed at partitioning the Aegean.
    "The air force, navy and army are in a state of alert,"
General Guven Ergenc, Secretary General of the Turkish General
Staff, told a news conference.
    He said the Turkish research ship Sismik 1, escorted by an
unspecified number of warships, would sail into disputed waters
in the Aegean Sea tomorrow morning.
    Ergenc told Reuters later that all leave had been cancelled
for members of the armed forces in the Aegean coast area.
    The Turkish government said yesterday it had licensed the
state-owned Turkish Petroleum Corp to explore for oil in
international waters around three Greek islands off Turkey.
     Greece and Turkey have long-standing disputes over areas
of the Aegean and the presence of Turkish troops in Cyprus.
    The latest row erupted when the Greek government said last
month that it was taking control of a Canadian-led consortium
which was already producing oil off the Greek island of Thassos
and would drill in the same area after the takeover.
    Ergenc told the news conference the alert followed a
government decision that Turkey should protect its interests
"because of measures Greece has been taking in the Aegean in
violation of international agreements."
    Asked how Turkey would react if Greece attacked any of the
vessels, he said "If there is an attack, it is clear what has to
be done. An attack on a warship is a cause for war." But he
added "We are not in a state of war. The measures taken by the
military are directed towards protecting our rights."
    Greece said yesterday it would defend its national rights
in the Aegean and urged Turkey to accept reference of the
dispute to the International Court of Justice in The Hague.
    Turkish Foreign Ministry spokesman Yalim Eralp told
reporters today this was unacceptable because of preconditions
Athens had attached.
    In Athens, Greek Prime Minister Papandreou said that if the
Turkish vessel Sismik 1 began research operations "we will
hinder it, of course not with words, as it cannot be stopped
with words."
    Greek newspapers said the armed forces were on alert and
navy ships had gone to the Aegean. But government spokesman
Yannis Roubatis did not confirm the move, saying only "The Greek
fleet is not at its naval base."
    Papandreou said that a map issued in Turkey showed 95 pct
of the areas proposed for research were on the Greek
continental shelf.
    Papandreou told the U.S. And NATO that if they had a part
in orchestrating the present crisis in order to force Greece to
negotiate with Turkey, the Greek government would not accept
it.
    Papandreou has maintained in the past that he will not
negotiate with Ankara until Turkey recognises Greek rights in
the Aegean and withdraws its troops from Cyprus.
    He said that in the case of war with Turkey it would not be
possible for Greece to discuss the future of American military
bases here. Asked by reporters if he would close the U.S. Bases
in Greece in the event of war, Papandreou replied "Obviously,
and perhaps even before the war."


.I 15918
.C
interest
.W
****** Top discount rate at U.K. Bill tender rises to 9.3456 pct.
Blah blah blah.

.I 15919
.C
earn
.W
PORSCHE EXPECTS IMPROVEMENT IN U.S. SALES.
    STUTTGART, March 27 - Sports carmaker Dr. Ing. H.C.F.
Porsche AG <PSHG.F> said it expects to post a satisfactory
profit in 1986/87, with domestic volume sales seen lower but
U.S. Sales anticipated higher.
    Managing board chairman Peter Schutz said domestic sales
were expected to fall to 9,000 in the year ending July 31 from
11,340 in 1985/86. U.S. Sales should rise to more than 30,000
from 28,670 last year.
    Schutz made no specific profit or sales forecasts. Last
month the company said it expected net profit to fall below 70
mln marks this year from 75.3 mln marks in 1985/86.
    For sales, Porsche expects its overall world volume this
year to be above 50,000. Sales last year stood at 53,254,
Schutz said. His expectations of a satisfactory profit were
based on a combination of price rises and cost-cutting, he
added.
    The expected drop in West German sales this year would be
the result of the so-called "grey market" for Porsche cars, he
said. When the dollar was strong against the mark, many
Porsches had been bought locally in West Germany for illegal
export to the U.S.
    Porsche has previously said domestic sales in the 1986/87
first half fell to 3,267 from 5,387 in the same 1985/86 period.
    The fact that U.S. Sales will account for a larger
percentage of overall sales this year than before does not pose
problems for profit, the Porsche board said.
    In the last 12 months it has raised U.S. Prices by around
20 pct without suffering any decline in sales. At the same time
Porsche has hedged its dollar-denominated business for the
1986/87 business year, finance director Heinz Branitzki.
    Branitzki put Porsche's hedging costs in 1985/86 at 28 mln
marks.
    In a speech to the annual meeting, Schutz said third-party
orders placed with Porsche's engineering research centre in
Weissach were rising and should top 100 mln marks this year for
the first time.
    Porsche's net profit dropped sharply to 75.3 mln marks in
1985/86 from 120.4 mln marks in 1984/85.


.I 15920
.C
acq
.W
******DIXONS GROUP PLC BUYS 2,455,000 CYCLOPS SHARES, NOW OWNS 83 PCT.
Blah blah blah.

.I 15922
.C
earn
.W
******TEKTRONIX INC 3RD QTR SHR 48 CTWS VS 39 CTS.
Blah blah blah.

.I 15923
.C
earn
.W
AMERICAN MEDICAL INTERNATIONAL INC <AMI> PAYOUT.
    BEVERLY HILLS, Calif., March 27 -
    Qtly div 18 cts vs 18 cts in prior qtr
    Payable May one
    Record April 15


.I 15924
.C
cocoa
.W
COCOA BUFFER STOCK COMPROMISE GAINING ACCEPTANCE.
    By Lisa Vaughan, Reuters
    LONDON, March 27 - A final compromise proposal on cocoa
buffer stock rules presented by International Cocoa
Organization, ICCO, council chairman Denis Bra Kanon is swiftly
gaining acceptance by consumer and producer members, delegates
said.
    "We are close, nearer than ever to accepting it, but we
still have some work to do," producer spokesman Mama Mohammed of
Ghana told Reuters after a producers' meeting.
    European Community, EC, delegates said EC consumers
accepted the package in a morning meeting and predicted "no
problems" in getting full consumer acceptance.
    Delegates on both sides are keen to come to some agreement
today, the last day of the fortnight-long council meeting, they
said.
    The compromise requires that buffer stock purchases from
non-ICCO member countries cannot exceed 15 pct of total buffer
stock purchases, delegates said. The non-member cocoa issue has
been among the most contentious in the rules negotiations.
    The 15 pct figure, up five percentage points from earlier
proposals, represents a concession to consumers, delegates
said. They have demanded a larger allowance for non-member
cocoa in the buffer stock than producers have wanted.
    Another problem area, delegates said, was the question of
price differentials for different origins of cocoa bought into
the buffer stock, by which the buffer stock manager could
fairly compare relative prices of different cocoas offered to
him.
    The compromise narrowed the range of differentials between
the origins from what previous proposals had detailed -- a move
some delegates described as "just fiddling."
    But the adjustments may prove significant enough to appease
some countries that were not satisfied with the original
proposed differentials assigned to them, delegates said.
    The compromise also stated buffer stock purchases on any
day would be limited to 40 pct each in nearby, intermediate or
forward positions, delegates said.
    If the compromise is accepted by the council, most
consumers and producers want buffer stock rules to take effect
next week, or as soon as practically possible.
    The full council is scheduled to meet around 1500 GMT to
discuss the compromise, and could agree on it then if all
parties are satisfied, they said. Consumers are due to meet
before the council.


.I 15925
.C
acq
.W
DIXONS BOOSTS CYCLOPS <CYL> OWNERSHIP TO 83 PCT.
    NEW YORK, March 27 - <Dixons Group Plc> said it bought
about 2,445,000 Cyclops Corp common shares, boosting its
holdings of the company's stock to about 83 pct of those now
outstanding and 79 pct on a fully diluted basis.
    Dixons said the stock was purchased in a single block
transaction at 95 dlrs per share.
    The company said it expects to proceed with a merger and
has advised Cyclops it intends to increas the per-share amount
to be paid in the merger to 95 dlrs, form 90.25 dlrs, for each
of the about 880,000 remaining Cyclops shares outstanding on a
fully diluted basis.


.I 15927
.C
iron-steel;wheat;grain;coffee;crude;trade;tea;
.W
INDIA STEPS UP COUNTERTRADE DEALS.
    NEW DELHI, March 27 - India is searching for non-communist
countertrade partners to help it cut its trade deficit and
conserve foreign exchange.
    Wheat, tobacco, tea, coffee, jute, engineering and
electronic goods, as well as minerals including iron ore, are
all on offer in return for crude oil, petroleum products,
chemicals, steel and machinery, trade sources told Reuters.
    Most of the impetus behind countertrade, which began in
1984, comes from two state trading firms -- the State Trading
Corp (STC) and the Minerals and Metals Trading Corp (MMTC).
    "The two state trading corporations are free to use their
buying power in respect to bulk commodities to promote Indian
exports," a commerce ministry spokeswoman said, adding that
private firms are excluded from countertrading.
    One trade source said India has targetted countries that
depend on an Indian domestic market recently opened to foreign
imports. But countertrade deals still make up only a small part
of India's total trading and are likely to account for less
than eight pct of the estimated 18.53 billion dlrs in trade
during the nine months ended December, the sources said.
    Countertrade accounted for just five pct of India's 25.65
billion dlrs in trade during fiscal 1985/86 ended March,
against almost nothing in 1984/85, official figures show.
    However, the figures exclude exchanges with the Eastern
Bloc paid in non-convertible Indian rupees, the sources said.
    Total trade with the Soviet Union, involving swaps of
agricultural produce and textiles for Soviet arms and crude
oil, is estimated at 3.04 billion dlrs in fiscal 1986/87.


.I 15932
.C
earn
.W
TEKTRONIX INC <TEK> 3RD QTR NET.
    BEAVERTON, Ore., March 27 - Qtr ends March 7
    Shr 48 cts vs 39 cts
    Net 18.7 mln vs 15.6 mln
    Revs 415.4 mln vs 384.5 mln
    Nine mths
    Shr 1.31 dlrs vs 78 cts
    Net 50.7 mln vs 31.8 mln
    Revs 1.04 billion vs 1.01 billion
    NOTE: per share for yr and qtr prior restated to reflect
two-for-one stock split in Jan 1987.


.I 15933
.C
earn
.W
******WESTINGHOUSE SAYS IT EXPECTS AT LEAST 10 PCT EARNINGS/SHR GROWTH THROUGH 89.
Blah blah blah.

.I 15935
.C
acq
.W
METROPOLITAN FINANCIAL<MPC> TO ACQUIRE COMPANY.
    FARGO, N.D., March 27 - Metropolitan Financial Corp said it
signed an agreement to acquire the stock of closely held
Rothschild Financial Corp, St. Paul, Minn.
    Details of the purchase were withheld.
    It said Rothschild in 1986 originated 500 mln dlrs of
mortgage loans, and its loan servicing portfolio stands at 1.4
billion dlrs. Officials of both companies estimated their
combined efforts could produce originations of 800 mln dlrs and
a loan servicing portfolio "well over 2.0 billion dlrs by
yearend."


.I 15937
.C
money-fx
.W
U.K. MONEY MARKET GIVEN FURTHER 663 MLN STG HELP.
    LONDON, March 27 - The Bank of England said it gave the
money market a further 663 mln stg assistance in the afternoon
session. This takes the Bank's total assistance so far today to
928 mln stg and compares with its forecast shortage which it
earlier revised up to 850 mln stg from 750 mln.
    The central bank purchased bills in band one at 9-7/8 pct
comprising 267 mln stg bank bills, four mln stg local authority
bills and one mln stg treasury bills. It also bought 378 mln
stg bank bills and 13 mln stg of treasury bills in band two at
9-13/16 pct.


.I 15939
.C
money-fx
.W
AUSTRIA DOES NOT INTERVENE TO SUPPORT DOLLAR.
    VIENNA, March 27 - The Austrian National Bank did not
intervene on the foreign exchange markets today to support the
dollar, deputy banking department chief Herbert Danzinger told
Reuters.
    He denied a suggestion by a dealer at one Vienna bank that
the National Bank had sold marks to support the U.S. Currency.
    Senior dealers at Creditanstalt and Girozentrale, Austria's
two largest banks, said they would have been aware of any
National Bank intervention. Any dollar purchases by the Bank
today were for purely day-to-day purposes, they said.


.I 15940
.C
acq
.W
HANSON TRUST <HAN> U.S. ARM SELLS CHEMICAL UNIT.
    NEW YORK, March 27 - Hanson Trust Plc <HAN> said its U.S.
subsidiary, Hanson Industries, sold PCR Inc, a specialty
chemicals unit, for 6.25 mln dlrs in cash to <Chemical Partners
Inc>.
    Hanson Industries said it acquired PCR Inc in 1986 as part
of its purchase of <SCM Corp>.
    PCR Inc posted an operating loss in 1986 of 381,000 dlrs on
sales of 13.2 mln dlrs, the company said.


.I 15944
.C
acq
.W
ELDERS EXTENDS OFFER FOR CARLING O'KEEFE <CKB>.
    TORONTO, March 27 - <Elders IXL Ltd>, of Australia, said
wholly owned IXL Holdings Canada Inc extended its previously
announced offer to acquire all outstanding shares of Carling
O'Keefe Ltd to midnight April 23, 1987, from March 25.
    The 18-dlr-a-share offer is being extended for Elders to
obtain Canadian federal government approval for the acquisition
of control of Carling. Elders said its application to
Investment Canada is still being processed under normal review
procedures.
    Up to March 26, 19,962,000 shares or 92 pct of Carling's
stock has been deposited under the offer, Elders said.
    Elders also said it arranged for a credit facility of up to
390 mln dlrs, shared equally between two Canadian banks, which
would be available to acquire shares under the offer.


.I 15948
.C
earn
.W
STANDARD BRED PACERS <STBD> YR LOSS.
    GREAT NECK, N.Y., March 27 -
    Shr loss 35 cts vs loss seven cts
    Net loss 718,269 vs loss 145,216
    Revs 1,394,080 vs 2,608,083
    NOTE: full name of company is standard bred pacers and
trotters Inc.


.I 15950
.C
acq
.W
MULTIVEST <MVST> ENDS MERGER TALKS,SETS PURCHASE.
    NEW YORK, March 27 - Multivest Corp said it has ended talks
on <Oryx Capital Corp>'s possible acqusition of Multivest and
is starting an offer of 1.51 dlrs a share for all the
oustanding shares of <T.B.C. Industries Inc>.
    Multivest said its T.B.C. tender offer is scheduled to
expire April 30.


.I 15951
.C
earn
.W
MOBILE COMMUNICATIONS CORP <MCCAA> YR NET.
    JACKSON, Miss., March 27 -
    Shr 77 cts vs 37 cts
    Net 13.5 mln vs 4.8 mln
    Revs 70.8 mln vs 60.8 mln
    Avg shrs 17.5 mln vs 12.9 mln
    NOTE: 1986 net includes gain of 18 mln dlrs from sale in
Dec 1986 of a 50 pct interest in its cellular telephone
operations to BellSouth Corp.
    Net income also reflects non-recurring charges of 8,400,000
dlrs recorded in the fourth qtr 1986, primarily reflecting
revaluation of assets.
    Full name of company is mobile communications corp of
america.


.I 15952
.C
earn
.W
TOKHEIM CORP <TOK> 1ST QTR FEB 28 NET.
    FORT WAYNE, Ind., March 27 -
    Shr 23 cts vs 12 cts
    Net 1,535,000 vs 783,000
    Rev 40.0 mln vs 28.7 mln


.I 15953
.C
earn
.W
SPARTECH<SPTN> SETS REVERSE SPLIT,DEBENTURE SALE.
    NEW YORK, March 27 - Spartech Corp said it plans a one for
five reverse stock split and has filed a registration statement
with the Securities and Exchange Commission covering a planned
25 mln dlr offering of convertible subordinated debentures due
1999.
    Spartech said the debenture offering will be underwritten
by Kidder Peabody and Co.
    The company said the split will be effective on stock of
record April eight.


.I 15955
.C
acq
.W
RESTAURANT ASSOCIATES <RA.A> SETS 1ST QTR GAIN.
    NEW YORK, March 27 - Restaurant Associates Industries Inc
said it expects to record a pretax gain of 3.3 mln dlrs in the
first quarter from the sale and lease of real estate.
    The company said it received a 2.5 mln dlrs partial payment
in connection with the sale of property in Manhattan and an
additional one mln dlrs for early termination of the lease for
its headquarters, which was relocated in February.
    The outstanding balance of about 8.5 mln dlrs on the sale
of the property will be paid at closing scheduled for Sept 28,
1987, it said.
    In the first quarter ended March 31, 1986, Restaurant
Associates reported net income of 313,000 dlrs or seven cts a
share on sales of 40.8 mln dlrs.


.I 15956
.C
acq
.W
HUDSON'S BAY TO SELL WHOLESALE UNIT.
    TORONTO, March 27 - <Hudson's Bay Co> said it signed a
letter of intent to sell its Hudson's Bay Wholesale unit to a
private investment group. Terms were not disclosed.
    The company said Normal Paul, a member of the private
investment group, will head Hudson's Bay Wholesale management.
    The unit's existing management group, headed by Ron
McArthur, will also participate in ownership, the company said
without elaborating.
    The wholesale unit is a major distributor of tobacco,
confectionary and other products through 34 wholesale and 28
vending branches in Canada. 1986 sales were 798 mln dlrs.
    Hudson's Bay said the sale of its wholesaling unit is part
of a program to concentrate financial and management resources
on its core business of department stores and real estate.


.I 15957
.C
earn
.W
HENLEY GROUP INC <HENG> 4TH QTR LOSS.
    LA JOLLA, Calif., March 27 -
    Shr loss 3.41 dlrs
    Net loss 354 mln vs loss 53 mln
    Revs 825 mln vs 830 mln
    Avg shrs 103.8 mln
    Year
    Shr loss 5.33 dlrs
    Net loss 426 mlnm vs loss 66 mln
    Revs 3.17 billion vs 1.83 billion
    Avg shrs 80 mln
    NOTE: The company had no shares outstanding in 1985. On
March 16, it had 109,244,315 shares oustanding.
    Losses include pre-tax restructuring charges of 286 mln
dlrs in both 1986 periods vs 47 mln dlrs in both 1985 periods
    1986 year loss also includes charge of about 100 mln dlrs
for amortization of good will


.I 15960
.C
earn
.W
BAYBANKS INC <BBNK> RAISES QTLY DIVIDEND.
    BOSTON, March 27 -
    Qtly div 36 cts vs 33 cts prior
    Pay May one
    Record April 14


.I 15961
.C
earn
.W
TOKHEIM <TOK> SEES IMPROVING SALES IN 1987.
    FORT WAYNE, Ind., March 27 - Tokheim Corp, manufacturer of
electronic petroleum marketing systems, said it expects
shipments of Tokheim Convenience Systems (TCS), its new family
of dispensers, to improve its sales trend throughout 1987.
    Tokheim said shipments of TCS will begin in the second
quarter.
    Earlier, the company reported first quarter, ended February
28, earnings of 1.5 mln dlrs, or 23 cts a share, up from
783,000 dlrs, or 12 cts a share, in last year's first quarter.
Sales rose as well, it said, to 40.0 mln dlrs, from 28.7 mln
dlrs in the prior first quarter.


.I 15963
.C
acq
.W
SAFETY-KLEEN <SK> TO BUY MCKESSON <MCK> UNIT.
    ELGIN, ILL., March 27 - Safety-Kleen Corp said it agreed in
principle to acquire McKesson Envirosystems Co, a subsidiary of
McKesson Corp.
    It said McKesson Envirosystems' current annual gross
revenues are about 14 mln dlrs.
    The company collects flammable solvents from its industrial
customers for a fee, after which it analyzes and processes the
solvents before they are burned.


.I 15965
.C
wheat;grain;
.W
CCC ACCEPTS BIDS ON BONUS WHEAT TO ALGERIA-USDA.
    WASHINGTON, March 27 - The Commodity Credit Corporation,
CCC, has accepted bids for export bonuses on 36,000 tonnes of
durum wheat to Algeria, the U.S. Agriculture Department said.
    The department said the bonuses awarded averaged 40.42 dlrs
per tonne and will be paid to exporters in the form of
commodities from CCC inventories.
    The bonuses were made to Cam USA, Inc, the department said.
    The wheat is for shipment May 1-10, 1987.
    An additional 264,000 tonnes of durum wheat are still
avaiable to Algeria under the Export Enhancement program
initiative announced on March 16.


.I 15966
.C
earn
.W
WESTINGHOUSE <WX> SEES HIGHER EARNINGS GROWTH.
    NEW YORK, MARCH 27 - Westinghouse Electric Corp said
earnings per share growth will exceed sales growth and will be
in the double digit range through 1989.
    In 1986, the company earned 4.42 dlrs a share on revenues
of 10.7 billion dlrs.
    Speaking at a meeting for securities analysts, Douglas
Danforth, Westinghouse's chairman, said the company's sales
growth target is about 8.5 pct a year for 1988 and 1989, "given
an economic environment that remains on a moderate growth
course." He also said the company will make acquisitions, but
he did not specify particular targets.
    Paul E. Lego, senior executive vice president told the
analysts "our plans do not call for a multibillion dlr
acquisition, even though our balance sheet can handle one.
Despite this disclaimer, if we identify a major acquisition
that has significnt value-creating for Westinghouse...we will
consider it." He said the company would consider an acquisition
candidate that is in an area compatable with Westinghouse's
primiary businesses.
    Danforth said the corportation was focused in several key
areas including defense electronics, financial services,
broadcasting, electrical products and services for construction
and industrial and utility markets.
    Danforth added that he expects Westinghouse's sales to grow
faster than the markets the corportation serves and "surely
faster than GNP."
    He said earnings per share growth is expected to
consistently exceed the Standard and Poor's 500 index and
return on equity will remain in the 18 to 21 pct range.
    Leo W. Yochum, senior executive vice president for finance,
told the analysts "we will consider buying back stock" but
there are no current plans for such a buyback.
    Yochum said that at the company's current level of earnings
it could comfortably maintain higher debt levels and that
Westinghouse will use its debt capacity to improve shareholder
value.
    Last year, Westinghouse established a 790 mln dlrs
restructuring reserve to be used for plant consolodation,
assett writedowns and other items. Yochum said, the company
spent 306 mln dlrs of that reserve in 1986 and will spend 344
mln dlrs of the reserves in 1987. The balance will be used in
1988. He also said, capital expenditures should be about 400
mln dlrs in 1987.


.I 15967
.C
acq
.W
CLEARWATER FINE FOODS ACQUIRES CHANNEL FOODS.
    NEW YORK, March 27 - Clearwater Fine Foods Inc, a Canadian
company minority owned by Hillsdown Holdings PLC of London, has
acquired Channel Foods Ltd, a Cornwall, England producer of
chilled smoke fish and pate products, Hillsdown said.
    Privately held Clearwater was sold for three mln stg, the
company said.


.I 15968
.C
earn
.W
GALACTIC RESOURCES LTD <GALCF> YEAR LOSS.
    VANCOUVER, British Columbia, March 27 -
    Shr loss 1.30 dlrs
    Net loss 25.6 mln
    Revs 20.5 mln
    Note: Prior results not given.
    Shr and net include change in accounting policy, resulting
in loss of 22.8 mln dlrs or 1.16 dlrs share.
    Results in U.S. funds


.I 15970
.C
cocoa
.W
COCOA CONSUMERS ACCEPT COMPROMISE BUFFER PLAN.
  LONDON, March 27 - Consumer members of the International
Cocoa Organization, ICCO, accepted a final buffer stock rules
compromise, "on the condition that producers also agree,"
consumer spokesman Peter Baron said.
    The full council was meeting at 1530 GMT to discuss the
compromise, which was put together yesterday by ICCO chairman
Denis Bra Kanon.
    Consumer delegates said they were optimistic the council
could reach agreement on the rules fairly quickly.


.I 15973
.C
ship;crude;
.W
NATO HOLDS EMERGENCY MEETING ON AEGEAN CRISIS.
    BRUSSELS, March 27 - NATO ambassadors met in emergency
session today to discuss tension between members Greece and
Turkey over a disputed area of the Aegean Sea on the Western
Alliance's southern flank, Greek diplomatic sources said.
    They said no information had yet emerged from the meeting,
called after statements from both countries that they were
prepared to back rival oil exploration teams with warships.
    General Guven Ergenc, Secretary General of the Turkish
General Staff, said today the Turkish research ship Sismik 1,
escorted by an unspecified number of warships, would sail into
disputed waters in the Aegean Sea tomorrow morning.
    Greek Prime Minister Andreas Papandreou said "The military
readiness of our country is able now to give a very hard lesson
if our neighbours (Turkey) were to carry out military actions."
    The row erupted when the Greek government said last month
that it was taking control of a Canadian-led consortium which
was already producing oil off the Greek island of Thassos and
would drill in the same area after the takeover.


.I 15974
.C
acq
.W
HANSON TRUST TO SELL U.S. CHEMICALS UNIT.
    LONDON, March 27 - Hanson Trust Plc <HNSN.L> said its U.S.
Subsidiary, Hanson Industries Inc, is to sell PCR Inc, a
speciality chemicals unit, for 6.25 mln dlrs cash to <Chemical
Partners Inc>.
    PCR had sales of 13.2 mln dlrs in fiscal 1986 and an
operating loss of 381,000 dlrs.


.I 15975
.C
acq
.W
******INVESTOR PAUL BILZERIAN HAS 7.2 PCT PAY 'N PAK STAKE, MAY SEEK CONTROL.
Blah blah blah.

.I 15978
.C
acq
.W
LSB INDUSTRIES <LSB> AGREES TO ACQUIRE BANK.
    OKLAHOMA CITY, March 27 - LSB Industries Inc said it agreed
to acquire Northwest Federal Savings and Loan Association for
1,500,000 dlrs.
    As part of the agreement, LSB said it also would transfer
assets valued of not less than 30 mln dlrs to Northwest
Federal, which is located in Woodward, Okla.


.I 15979
.C
earn
.W
UNIVERSAL HOLDING CORP <UHCO> 4TH QTR NET.
    JERICHO, N.Y., March 27 -
    Shr NA
    Net profit 2,000 vs profit 195,000
    Revs 2,623,000 vs 2,577,000
    Year
    Shr NA
    Net loss 425,000 vs profit 278,000
    Revs 15.4 mln vs 8,637,000


.I 15982
.C
acq
.W
BILZERIAN MAY SEEK CONTROL OF PAY 'N PAK <PNP>.
    WASHINGTON, March 27 - Investor Paul Bilzerian disclosed he
holds a 7.2 pct stake in Pay 'N Pak Stores Inc common stock and
is considering seeking control of the retail building material
firm.
    Bilzerian said he and a Tampa, Fla., investment firm he
controls called Bicoastal Financial Corp "may acquire additional
shares, or they may seek to acquire one or more positions on
(Pay 'N Pak's) Board of directors or to acquire a controlling
interest in the (company's) shares, by tender offer or
otherwise." The statement was made in a filing with the
Securities and Exchange Commission.
    Bilzerian said his course of action would depend on the
company's prospects, market conditions and other factors.
    Bilzerian said he and Bicoastal made net purchases of
515,600 shares on the New York Stock Exchange Jan 26-March 25.
    His 7.2 pct stake makes up a total of 722,000 shares.


.I 15984
.C
interest
.W
FED EXPECTED TO ADD RESERVES, ECONOMISTS SAY.
    NEW YORK, March 27 - The Federal Reserve is expected to
enter the U.S. government securities market to add reserves
today, economists said.
    They said the Fed would probably supply temporary reserves
indirectly by arranging one to two billion dlrs of customer
repurchase agreements.
    After averaging 6.21 pct yesterday, federal funds were
opened at 6-1/8 pct and remained at that level.


.I 15987
.C
acq
.W
ALLEGHENY INT'L <AG> SELLS THREE OVERSEAS UNITS.
    PITTSBURGH, Pa., March 27 - Allegheny International Inc
said it sold three overseas subsidiaries to Reil Corp Ltd, a
North Sydney, Australia, investment group.
    Terms were not disclosed.
    The units sold were Sunbeam Corp Ltd Australia, Sunbeam New
Zealand Ltd and Victa (U.K.) Ltd. The units make and distribute
various products, including lawn mowers, small appliances and
sheep shearing equipment. They employ a total of about 1,750.


.I 15990
.C
earn
.W
GALACTIC <GALCF> ADOPTS CONSERVATIVE ACCOUNTING.
    VANCOUVER, British Columbia, March 27 - Galactic Resources
Ltd, earlier reporting a 1986 loss of 25.6 mln U.S. dlrs, said
it adopted a more conservative accounting policy, similar to
other gold producers' accounting for exploration costs.
    As a result, the company retroactively charged all past
exploration and related administration costs incurred on its
properties against expenses in 1986, 1985 and 1984.
    Under the new policy, all future exploration and related
administration costs will be written off to expenses rather
than capitalized as an intangible asset, it said.
    Galactic said the accounting change resulted in a 22.8 mln
U.S. dlr charge against 1986 earnings. It did not immediately
disclose the affect of the change on prior years' results.
    The new accounting policy is not expected to adversely
affect working capital position, future cash flows or the
company's ability to conduct ongoing business operations, it
said.
    Galactic said the charge includes 9.9 mln U.S. dlrs of
costs concerning its Summitville Mine leach pad and 8.9 mln
U.S. dlrs in waste removal costs, dyke construction and other
mine developments.
    Galactic said under the prior accounting policy, the
Summitville mine expenses would have been amortized over the
life of the mine and charged against future earnings.
    The change will also result in lower depreciation and
amortization charges against income of about 52 U.S. dlrs an
ounce of gold produced in future periods, based on total
estimated reserves of 617,000 ounces.
    Galactic said March leaching production at Summitville is
expected to exceed 2,500 ounces, raising gold equivalent
production since the June 5, 1986 start of leaching to 65,000
ounces.


.I 15991
.C
cocoa
.W
******Cocoa Council agrees new buffer stock  rules - delegates.
Blah blah blah.

.I 15992
.C
earn
.W
MARS STORE <MXXX> SEES QTR, YEAR LOSS AND CHARGE.
    NORTH DIGHTON, MA., March 27 - Mars Store Inc said it
expects to report a loss of about 800,000 dlrs for the fourth
quarter and about 1.1 mln dlrs for the fiscal year ended
January 31.
    As a result of the loss, the company said it has decided to
discontinue the operations of its Big Value Outlets division,
which will result in a yet undisclosed one time charge against
earnings for the year.
    The estimated 1.1 mln dlrs year loss or about 50 cts a
share, compares with earnings of 871,000 dlrs or 42 cts a share
recorded last year.
    "The fourth quarter loss was affected by an abnormally high
inventory shrinkage, lower than planned sales and higher
markdowns related to increased promotional activity, all of
which reduced fourth quarter gross margins," the company said.
    In order to concentrate on the company's core business, the
operation of discount and promotional department stores, Mars
said, it has decided to close the Big Value division.


.I 15993
.C
acq
.W
HONEYWELL <HON> COMPLETES COMPUTER BUSINESS SALE.
    MINNEAPOLIS, Minn., March 27 - Honeywell Inc said it has
completed the sale of 57.5 pct of its Honeywell Information
Systems <HIS> computer business to <Compagnie des Machines
Bull> of France and <NEC Corp> of Japan for 527 mln dlrs in
cash.
    Honeywell said it will use much of the money to reduce
short-term debt incurred last December when the company
purchased the Sperry Aerospace Group.
    Honeywell said the sale of HIS has created a new dedicated
computer company jointly owned by Bull, NEC and Honeywell.
    The new privately held company, named Honeywell Bull, is
42.5 pct owned by Honeywell Inc, 42.5 pct by Bull and 15 pct by
NEC, the new company said.
    Honeywell added that terms of the agreement with NEC and
Bull allow it to reduce its current 42.5 pct stake in the new
company to 19.9 pct at the end of 1988 by selling just over
half its shares to Bull. Book value at the time will determine
the move's pricing, Honeywell said.
    Honeywell chairman and chief executive officer, Edson
Spencer, said the move is the last major step in Honeywell's
restructuring.
    "As the leading worldwide supplier of of automation and
controls for buildings, industry, aerospace and defense,
Honeywell is now focusing its management, technical and
financial resources on high market share business," Spencer
said.
    Honeywell said it expects to be Honeywell Bull's largest
customer, purchasing computers for its own internal data
processing, for integration into Honeywell buidling and
industrial automation systems and for resale to the U.S.
governement.
    Honeywell said HIS's Federal Systems Division is now a
wholly owned unit of Honeywell Inc, and has been named
Honeywell Federal Systems Inc.
    Honeywell said it accounted for HIS as a discontinued
operation in 1986, and will account for its future interest on
a cost basis, recording any dividends as received.
    Honeywell Bull said it will continue to develop its product
line and build its business in integrated systems for
networking, database management and transaction processing.
    The new company said its board will have nine members,
including the chairman and chief executive officer.
    Bull will have four members, Honeywell two and NEC one, the
new company, which began worldwide operations today, said.
    It added that Jacques Stern, Bull's chairman and chief
executive officer, will serve as Honeywell Bull's chairman of
the board, while Jerome Meyer, formerly executive vice
president of Honeywell Information Systems, was named president
and chief executive officer.


.I 15995
.C
dlr;money-fx;
.W
DEALERS SAY FED INTERVENED BUYING DOLLARS IN U.S.
    NEW YORK, March 27 - U.S. dealers said the New York Federal
Reserve Bank has intervened in the foreign exchange market
today buying dollars against yen.
    Fed officials do not comment on such intervention, but
dealers said it appeared that the Fed had intervened when the
dollar reached 147.50 yen in New York.
    The dollar subsequently hovered at 147.55/65 yen.
    Dealers said they were uncertain about the size of the
intervention, but some said it was only for a small amount.
They were also uncertain whether the Fed intervened on its own
account, or if it executed orders for the Bank of Japan.


.I 15998
.C
earn
.W
<INNOPAC INC> SIX MTHS FEBRUARY 28 NET.
    TORONTO, March 27 -
    Shr 22 cts vs 45 cts
    Net 3,100,000 vs 5,100,000
    Revs 103.4 mln vs 98.2 mln


.I 16004
.C
earn
.W
CORNERSTONE FINANICAL CORP <CSTN> SETS PAYOUT.
    DERRY, N.H., March 27 -
    Qtrly div eight cts vs eight cts prior
    Pay May 15
    Record April 10


.I 16005
.C
gold;silver;lead;zinc;
.W
PEGASUS GOLD <PGULF> STARTS MILLING IN MONTANA.
    JEFFERSON CITY, Mont., March 27 - Pegasus Gold Inc said
milling operations have started at its Montana Tunnels open-pit
gold, silver, zinc and lead mine near Helena.
    The start-up is three months ahead of schedule and six mln
dlrs under budget, the company said. Original capital cost of
the mine was 57.5 mln dlrs, but came in at 51.5 mln dlrs, the
company said.
    After a start-up period, the mill is expected to produce 
106,000 ounces of gold, 1,700,000 ounces of silver, 26,000 tons
of zinc and 5,700 tons of lead on an annual basis from
4,300,000 tons of ore, the company said.


.I 16007
.C
grain;corn;
.W
LOWER ASCS CORN PRICES TO AFFECT TEN STATES.
    WASHINGTON, March 27 - The Agriculture Department's
widening of Louisiana gulf differentials will affect county
posted prices for number two yellow corn in ten states, a USDA
official said.
    All counties in Iowa will be affected, as will counties
which use the gulf to price corn in Illinois, Indiana,
Tennessee, Kentucky, Missouri, Mississippi, Arkansas, Alabama
and Louisiana, said Ron Burgess, Deputy Director of Commodity
Operations Division for the USDA.
    USDA last night notified the grain industry that effective
immediately, all gulf differentials used to price interior corn
would be widened on a sliding scale basis of four to eight cts,
depending on what the differential is.
    USDA's action was taken to lower excessively high posted
county prices for corn caused by high gulf prices.
    "We've been following this Louisiana gulf situation for a
month, and we don't think it's going to get back in line in any
nearby time," Burgess said.
    Burgess said USDA will probably narrow back the gulf
differentials when and if Gulf prices recede. "If we're off the
mark now because we're too high, wouldn't we be as much off the
mark if we're too low?" he said.
    While forecasting more adjustments if Gulf prices fall,
Burgess said no other changes in USDA's price system are being
planned right now.
    "We don't tinker. We don't make changes lightly, and we
don't make changes often," he said.


.I 16009
.C
grain;corn;
.W
GREECE BUYS 55,000 TONNES FRENCH MAIZE - TRADE.
    PARIS, March 27 - Greece bought a total of 55,000 tonnes of
French maize when it tendered yesterday, initially for 30,000
tonnes of April delivery, trade sources said.
    They said 25,000 tonnes, to be shipped from Bordeaux, were
sold at 1,603 francs per tonne fob, 15,000 tonnes from Rouen at
1,596 francs fob and 15,000 tonnes from Sete at 1,607 francs
fob.


.I 16011
.C
cocoa
.W
******COCOA BUFFER STOCK RULES TO TAKE EFFECT  IMMEDIATELY - DELEGATES.
Blah blah blah.

.I 16014
.C
wheat;grain;
.W
DROUGHT CUTS CHINESE WHEAT CROP -- USDA REPORT.
    WASHINGTON, March 27 - Drought has resulted in a reduction
in China's estimated wheat crop this year to 87.0 mln tonnes,
2.0 mln below last year's harvest, the U.S. Agriculture
Department's officer in Peking said in a field report.
    The report, dated March 25, said imports in the 1987/88
season are projected at 8.0 mln tonnes, 1.0 mln tonnes above
the the current season's estimate.
    Imports from the United States are estimated at 1.5 mln
tonnes compared to only 150,000 tonnes estimated for the
1986/87 year, it said.
    After travelling to major wheat producing areas and
obtaining more information on the planted area, the total
planted area was estimated down 290,000 hectares due to the dry
fall, it said.
    The report said to compensate for the below normal
precipitation irrigation has increased as has the use of
fertilizer.
    While there are pockets where irrigation is not possible,
most of the wheat crop has access to some water and therefore
has emerged from dormancy and is doing well, the report said.
    It said scattered rain in many parts of China in the past
10 days has improved the situation but information on hail
damage in Anhui is incomplete.


.I 16018
.C
earn
.W
CISTRON BIOTECHNOLOGY <CIST> SETS DIVIDEND.
    PINE BROOK, N.J., MARCH 27 - Cistron Biotechnology Inc said
it will pay a stock dividend declared prior to the initial
public offering of its common stock in August 1986 to
stockholders of record prior to the common offering.
    Payment of the dividend was contingent on the closing bid
price of the common stock averaging two dlrs or more per shares
for the trading days within any consecutive ten day period
ending before February 29, 1988. The company said that the
contingency has been fulfilled.
    Payment of the stock dividend increases Cistron's
outstanding common stock to 21,390,190 shares from 16,185,354
shares.


.I 16019
.C
earn
.W
WERNER ENTERPRISES INC <WERN> 4TH QTR, YR NET.
    OMAHA, Neb., March 27 - Qtr ends Feb 28
    Shr 18 cts vs 10 cts
    Net 2,051,000 vs 901,000
    Revs 25.8 mln vs 19.2 mln
    Avg shrs 10.7 mln vs 9,059,600
    12 mths
    Shr 87 cts vs 63 cts
    Net 9,020,000 vs 5,680,000
    Revs 94.4 mln vs 73.7 mln
    Avg shrs 10.3 mln vs 9,059,600


.I 16020
.C
earn
.W
<REVENUE PROPERTIES CO LTD> YEAR LOSS.
    TORONTO, March 27 -
    Shr loss eight cts vs loss 24 cts
    Net loss 1,150,000 vs loss 3,450,000
    Revs 55.7 mln vs 78.1 mln


.I 16023
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 27 - The Federal Reserve entered the U.S.
Government securities market to arrange one billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-1/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 16025
.C
cocoa
.W
ICCO COUNCIL AGREES COCOA BUFFER STOCK RULES.
    LONDON, March 27 - The International Cocoa Organization
(ICCO) Council reached agreement on rules to govern its buffer
stock, the device it uses to keep cocoa off the market to
stabilise prices, ICCO delegates said.
    The date on which the new rules will take effect has not
been decided but delegates said they expected them to come into
force early next week, after which the buffer stock manager can
begin buying or selling cocoa.
    Since prices are below the "may-buy" level of 1,655 Special
Drawing Rights a tonne set in the cocoa pact, the manager is
likely to buy cocoa sooon to support the market, they said.
    Delegates and traders said they expected the manager,
Juergen Plambeck, to intervene in the market within three weeks
of the pact coming into force.
    The rules permit him to buy and sell cocoa from origins or
the second hand market on an offer system, not by means of a
posted price as in the previous cocoa accord.
    The cocoa will be priced according to a fixed set of
differentials, ranging from 137 stg for most expensive Ghana
cocoa to zero for Malaysian cocoa.
    Purchases from non-members, such as Malaysia, will be
limited to 15 pct of the total stock and those on any one day
should be limited to 40 pct each in nearby, intermediate and
forward positions.
    The council meeting, which is expected to conclude two
weeks of sessions involving various working groups and the
council itself, was continuing, the delegates said.
    The current cocoa agreement came into force on January 20
during a previous meeting of the council which was unable to
agree on the rules to implement buffer stock operations.


.I 16026
.C
trade
.W
UK MAY REVOKE JAPANESE FINANCIAL LICENSES.
    By Sten Stovall, Reuters
    London, March 27 - The British government may revoke the
licences of selected Japanese banks and securities companies
operating in London's financial City when they come up for
renewal next summer if progress is not made towards opening up
Japan's markets to foreign competition, government sources
said.
    "We can't say "yes, we are going to do it (revoke licences)"
but this is definitely being considered," an official said.
    His comments came after the government was formally urged
today by a cross-section of influential MPs to take joint
retaliatory action with the United States against Japan.
    Britain has grown increasingly impatient with Japanese
trade practices. "There's a sense of urgency here now, but the
emphasis is on securing - not undermining - our interests in
Japan," another government official told Reuters.
    Prime Minister Margaret Thatcher said on Thursday that
Britain would not hesitate to use new powers contained in the
Financial Services Act 1986 and the Banking Bill to retaliate
against countries that do not offer reciprocal market access.
    She clearly had Japan in mind, government sources said.
    The U.K. Last year showed a trade defict with Japan of 3.7
billion stg, official figures show.
    A parliamentary motion, signed by 98 MPs, today urged the
U.K. Government to "coordinate action with the President of the
United States, and through the Department of Trade and
Industry, to suspend all further applications from Japanese
communications companies for equipment approval by the British
Approvals Board for Telecommunications, and all further
applications from Japanese financial institutions for licences"
until authorities in Japan stopped imposing what the MPs called
"restrictive conditions" on the bid by (Cable and Wireless PLC)
(cawl.L) and its U.S. And Japanese partners for a stake in
Japan's international telecommunications market.
    The motion for retaliatory steps came from a cross-section
of MPs, reflecting the strength of feeling inside Parliament.
Parliamentarians said their action would increase pressure on
the Conservative government to take firm action.
    Officials said another option now being considered by the
U.K. Is to refuse issuing new banking licences to Japanese
institutions. That could be done under the government's
proposed Banking Bill now moving through parliament.
    58 Japanese financial institutions are authorised to deal
in London, of which 29 are banks. In Tokyo, 14 London-based
firms are authorised to do financial business, officials said.
    The new financial services and banking acts offer Britain
an alternative for retaliation which would be otherwise denied
under legally-binding international trade agreements.
    "The Financial Services Act gives (Trade and Industry
Secretary Paul) Channon power to stop firms from engaging in
investment, banking and insurance," one official said.
    "This point has been made to the Japanese at official level
a number times," the official added.
    Britain and France are now working together to urge that
the European Community take collective action against Japan,
but by working within EC treaties, another official said.
    British Trade Minister Alan Clark said this week in a radio
interview that the European Community should build barriers
against Japanese imports through certification procedures
similar to those facing European exporters in Japan.
    "There comes a point where you cannot resist any longer," he
said, adding "(such barriers) can't be put in place overnight."
Clark said the issue of reciprocity regarding visible trade
"strikes at the basis of whether British industry is to have a
fair access to an extremely large market (Japan) which is
itself in a very dominant position (in) certain aspects of our
own domestic market ... It is really a question of fairness."
    The situation is only likely to worsen following news that
Japan's trade surplus with the rest of the world rose by more
than 70 pct in February, year-on-year, to 8.14 billion dlrs
from 5.7 billion in January, political sources said.
    But Clark said in his interview that the issues of visible
trade and access to financial markets should be kept separate.
    Should Britain decide to act against Japanese financial
institutions, it would most likely focus on the smaller, rather
than larger ones, to minimise any risks to its role as a global
business centre, government sources said. Japan's four largest
securities houses are members of the London Stock Exchange.
    In Washington, White House officials said President Reagan
was ready to impose retaliatory trade action against Japan for
breaking its semiconductor agreement with the United States.
    There was no immediate indication when Reagan might act on
the recommendations of his Economic Policy Council to curb
Japanese exports to the United States but officials said the
move could come today or early next week.
    Trade sources said the actions being weighed by Reagan
included tariffs on a wide variety of Japanese exports which
use semiconductors.




.I 16027
.C
cocoa
.W
COCOA BUFFER STOCK RULES EFFECTIVE IMMEDIATELY.
    LONDON, March 27 - The cocoa buffer stock rules just
decided by the International Cocoa Organization, ICCO, council
will take effect immediately, delegates said.
    That means the buffer stock manager is likely to begin
buying cocoa within two or three weeks, after organizing
communication systems and assessing the market, they said.


.I 16029
.C
acq
.W
SOUTHAM TO SELL 49 PCT INTEREST IN BRANDON SUN.
    TORONTO, March 27 - <Southam Inc> said it agreed to sell
its 49 pct interest in Sun Publishing Co Ltd, which publishes
The Brandon Sun, to majority shareholder publisher Lewis D.
Whitehead.
    Terms were not disclosed.
    Southam said the proposed sale resulted from an offer made
by Whitehead, whose family has had majority control of the
newspaper since 1905.
    The Brandon Sun has daily circulation of 19,100.


.I 16030
.C
earn
.W
GLAMIS GOLD <GLGVF> SETS COMMON STOCK SPLIT.
    VANCOUVER, British Columbia, March 27 - Glamis Gold Ltd
said it will ask shareholders at an April 1 extraordinary
general meeting to approve a one-and-one-half for one common
share split.
    Record date for the split will be set in the near future,
the company said.


.I 16036
.C
earn
.W
NUCLEAR METALS <NUCM> HAS DELAY IN ORDERS.
    CONCORD, Mass., March 27 - Nuclear Metals Inc said a delay
in receiving certain new orders will result in negligible
earnings per share for its fiscal second quarter.
    However, the company said it has been assured that the
orders will be placed beginning in its fiscal third quarter and
that it expects a strong rebound in earnings for the third and
fourth quarters.


.I 16039
.C
acq
.W
FIRST SARASOTA HOLDERS APPROVE ACQUISITIONS.
    JACKSONVILLE, Fla, March 27 -  First Sarasota Bancorp said
its shareholders approved the acquisition of its City
Commercial Bank subsidiary by First Union Corp's <FUNC> First
Union National Bank of Florida.
    The purchase price of the outstanding shares is about 8.6
mln dlrs.
    The transaction, subject to regulatory approval, is
expected to be completed during the second quarter of 1987.
    After completing the City Commercial acquisition and four
other acquisitions having combined assets of 248 mln dlrs,
First Union will have assets of 28.6 billion dlrs.


.I 16040
.C
wheat;grain;corn;rice;
.W
JAMAICA BUYS U.S. PL-480 CORN, WHEAT AND RICE.
    CHICAGO, March 27 - Jamaica bought U.S. corn, wheat and
rice at its tender earlier this week using PL-480 funds, a U.S.
Department of Agriculture official said.
    The purchase consisted of the following cargoes -
 - Cargill sold 1,503.5 tonnes of number two soft red winter
(SRW) wheat for May 5/30 shipment at 117.44 dlrs per tonne FOB
Gulf ports.
 - Continental Grain 8,250 tonnes of number two northern
spring/dark northern spring (NS/DNS) wheat (14.5 pct protein)
for April 15/May 10 at 123.97 dlrs FOB Gulf, excluding
Brownsville.
 - Nichemen 10,000 tonnes number two SRW wheat for June 12/July
7 at 103.43 dlrs FOB Gulf.
 - Nichemen 10,000 tonnes number two NS/DNS wheat (14.0 pct
protein) for May 25/June 20 at 121.89 dlrs FOB Gulf.
 - Cargill 10,000 tonnes number two SRW wheat for April 10/May
5 at 120.88 dlrs FOB Gulf.
 - Cargill 8,469.5 tonnes number two SRW wheat for May 5/30 at
117.44 dlrs FOB Gulf.
 - Louis Dreyfus 4,500 tonnes number three yellow corn (15.0
pct maximum moisture) for April 10/May 5 at 76.09 dlrs FOB
Gulf.
 - Louis Dreyfus 5,300 tonnes same corn April 20/May 15 at
75.89 dlrs FOB Gulf.
 - Louis Dreyfus 5,300 tonnes same corn May 10/June 5 at 75.49
dlrs FOB Gulf.
 - Louis Dreyfus 5,300 tonnes same corn June 1/25 at 75.49 dlrs
FOB Gulf.
 - Loius Dreyfus 3,700 tonnes number two yellow corn (14.5 pct
maximum moisture) for Apirl 10/May 5 at 76.29 dlrs FOB Gulf.
 - Louis Dreyfus 3,700 tonnes same corn for May 10/June 5 at
75.68 dlrs FOB Gulf.
    Exporters have not received final PL-480 approval on their
sale of a total of 9,500 tonnes of U.S. number five or better
long grain brown rice (10 pct maximum broken) for April 10/May
25 shipments.
    But the USDA official said he saw no hold-up in obtaining
that approval.


.I 16041
.C
trade;ipi;
.W
HUNGARIAN ECONOMY CONTINUES UNFAVOURABLE TREND.
    BUDAPEST, March 27 - Hungary's economy and hard currency
trade have failed so far this year to reverse a two-year
unfavourable trend, the official Hungarian news agency MTI
said.
    Industrial production in January and February was only 1.3
pct up on the same 1986 period, MTI said, while hard currency
exports fell six pct as imports rose 10 pct.
    Hungary's hard currency trade fell into a deficit of 539.4
mln dlrs last year from a surplus of 295.3 mln in 1985 and 1.2
billion in 1984.
    MTI quoted a government spokesman saying last December's
wage freeze decree would expire on April 1 as envisaged.
    Gross domestic product grew a sluggish one pct in 1986
after stagnating in 1985 and growing 2.6 pct in 1984.


.I 16042
.C
nat-gas
.W
NOBLE AFFILIATES <NBL> FINDS NATURAL GAS.
    ARDMORE, Okla., March 27 - Noble Affiliates Inc said it
found natural gas on Ship Shoal 80, located about 10 miles
offshore Louisiana in the Gulf of Mexico.
    The discovery well, Samedan Oil Corp's OCS-G 5537 Well
Number One, was drilled in 25 feet of water to a total depth of
7,500 feet and found 38 feet of net gas pay in a 48-foot gross
sand interval, the company said.
    The well tested gas at a rate of 6.2 mln cubic feet a day
through a 26/64-inch choke with 1,548 pounds flowing tubing
pressure. Gas sales should begin in the first quarter of 1988,
it said.
    Samedan, a Noble unit, is operator and owns a 60 pct
working interest in the well. Other owners are a New England
Electric System <NES> unit, with a 25 pct stake, and
Southwestern Energy Production Co, with 15 pct.


.I 16045
.C
earn
.W
SOURCE VENTURE CAPITAL INC YEAR.
    ENGLEWOOD, Colo., March 27 -
    Shr profit nil vs loss nil
    Net profit 68,895 vs loss 160,893
    Revs 3.3 mln vs 104,801


.I 16048
.C
acq
.W
LSB <LSB> IN PACT TO ACQUIRE NORTHWEST FEDERAL.
    OKLAHOMA CITY, OK., March 27 - LSB Industries Inc said it
entered into an agreement to acquire Northwest Federal Savings
and Loan Association of Woodward, Oklahoma.
    Upon completion of the acquisition, LSB would pay about 1.5
mln dlrs to the shareholders of Northwest and transfer to
Northwest Federal certain assets having a net current appraised
value of not less than 30 mln dlrs.
    At completion of this transaction, Northwest Federal would
be a subsidiary of LSB's non-consolidated wholly-owned
financial subsidiary.
    The acquisition is subject to obtaining approvals, waivers
and forbearances from the Federal Home Loan Bank Board and
other government approvals.


.I 16050
.C
earn
.W
<BRAMALEA LTD> YEAR NET.
    TORONTO, March 27 -
    Shr 73 cts vs 55 cts
    Net 26.0 mln vs 17.1 mln
    Revs 673.3 mln vs 394.5 mln
    Avg shrs 29.3 mln vs 22.4 mln


.I 16051
.C
trade
.W
REAGAN READY TO IMPOSE TRADE CURBS AGAINST JAPAN.
    WASHINGTON, March 27 - President Reagan was ready to impose
retaliatory trade action against Japan for breaking its
semiconductor agreement with the United States, White House
officials said.
    There was no immediate indication when Reagan might act on
the recommendations of his Economic Policy Council to curb
Japanese exports to the United States, but officials said the
move could come today or early next week.
    Trade sources said the actions being weighed by Reagan
include tariffs on a wide variety of Japanese exports which use
semiconductors.
    The sources said the tariffs could be slapped on personal
computers, television receivers and laser-printers, with the
aim of penalizing Japan's major electronic firms, including NEC
Corp, Hitachi Ltd, Toshiba Corp and Fujitsu Ltd.
    They said Reaan could also delay invoking sanctions for a
week or two, giving Japan a final opportunity to end the
dumping practice, but added that negotiators had already held
extensive talks with the Japanese to no avail.


.I 16052
.C
gnp;reserves;
.W
SOUTH AFRICA GDP UP 4.7 PCT IN 1986 LAST QUARTER.
    PRETORIA, March 27 - The South African Reserve Bank,
confirming previous estimates, said real gross domestic product
in the 1986 fourth quarter grew at a seasonally adjusted annual
rate of 4.7 pct versus 4.6 pct in the third quarter and 1.3 pct
in the 1985 final quarter.
    The bank, in its latest quarterly review, said the nominal
growth rate for the year did not quite reach one pct after a
1.5 pct contraction in 1985.
    But it said when the strengthening of the terms of trade is
taken into account, the real GNP in 1986 advanced by 1.5 pct
compared with a decrease of 0.5 pct in 1985.
    GDP is the total value of goods and services produced by an
economy but omits income from abroad.  GNP includes such
payments or outflows.
    The bank also said there were indications the country's
economic recovery was becoming more broadly based.
    With the exception of commerce all major sectors of the
economy contributed to the fourth quarter rise in domestic
production.
    The bank said major increases in foreign reserves were
recorded in January, February and the first half of March 1987.
Reserves rose by 1.70 billion rand during January and February.
    Total reserves in 1986 declined by 189 mln rand to 5.70
billion rand and were equivalent to about 14.5 pct of the total
annual value of import payments.
    The current account surplus amounted to 7.20 billion rand
in 1986 versus 5.90 mln the previous year.
    The bank said continuing strength of the current account
has allowed foreign reserves to be "rebuilt to more comfortable
levels."
    "This has strengthened the authorities' hands in lending
support to the exchange rate of the rand if such action were to
be called for," the bank said.


.I 16053
.C
earn
.W
SOUTHWESTERN PUBLIC SERVICE CO<SPS> 2ND QTR NET.
    AMARILLO, Texas, March 27 -
    Shr 42 cts vs 42 cts
    Net 19.1 mln vs 19.5 mln
    Revs 184.9 mln vs 185.1 mln
    12 mths
    Shr 2.17 dlrs vs 2.53 dlrs
    Net 97.0 mln vs 111.8 mln
    Revs 793.3 mln vs 828.8 mln
    Avg shrs 40.9 mln vs 40.5 mln
    NOTE: Year-ago restated.


.I 16055
.C
earn
.W
<L.B. NELSON CORP> 4TH QTR NET.
    MENLO PARK, Calif., March 27 -
    Shr loss two cts vs loss 1.38 dlrs
    Net profit 34,000 vs loss 3,296,000
    Revs 3,121,000 vs 1,546,000
    Year
    Shr profit 28 cts vs loss 1.61 dlrs
    Net profit 1,088,000 vs loss 3,546,000
    Revs 5,266,000 vs 4,169,000
    Note: Current qtr per share figure adjusted to reflect
provision for preferred stock dividends.


.I 16057
.C
earn
.W
******SOUTHWESTERN BELL VOTES THREE-FOR-ONE STOCK SPLIT, 8.8 PCT DIVIDEND INCREASE.
Blah blah blah.

.I 16058
.C
cotton
.W
ANALYSTS PEG U.S. COTTON SEEDINGS 10.6 MLN ACRES.
    By Michelle Bolar, Reuters
    New York, March 27 - U.S. cotton farmers are likely to
plant about 10.6 mln acres in the coming season, based on an
average of estimates offered by cotton market analysts gearing
up for the U.S. Agriculture Department's 1987 planting
intentions report next Tuesday.
    The annual report gives cotton traders their first glimpse
of what U.S. production might be in the 1987/88 season, which
begins August 1.
    Trade and commission house forecasts ranged from 10.2 to
10.9 mln acres.
    On March 18 of last year, the USDA reported that cotton
farmers in 1986 intended to plant 9.71 mln acres.
    Four months later, the USDA estimated that 9.67 mln acres
had been planted as of June 1. By January, its estimate of 1986
planted acreage nationwide was 10.06 mln.
    Analysts said their forecasts for even greater acreage in
1987 were spurred in part by belief that this year's good
demand and firm prices will be repeated next year. Analysts
said those factors make cotton a profitable crop.
    "With cotton more attractive price-wise, I think there is
going to be a switch in acreage from soybeans to cotton.
Soybeans are dirt cheap," said Lisbeth Keefe of Cargill
Investor Services, whose comments were echoed by other cotton
market specialists.
    Changes in the U.S. cotton program also could lead to
increased acreage, analysts said.
    They recalled that under the 1986 program, cotton farmers
who used part of their crop as collateral for government loans
were not responsible for the cost of storing that cotton in
government warehouses. But under the 1987 plan, the government
will not pick up the tab for storage.
    Analysts said the change will discourage some farmers from
participating in the program, which could result in more
cotton. "The cotton program stipulates a mandatory set-aside of
25 pct of a farmer's base acreage," noted Judy Weissman of
Shearson Lehman Brothers. But farmers who elect not to
participate in the program are free to plant all the acreage 
they have.
    Some analysts said cotton farmers in the high-yielding
Western states would be most likely to steer clear of the
program. "Western acreage should be up at least 20 pct," said
one commission house analyst, whose estimate was based in part
on forecasts made by the National Cotton Council during its
annual meeting in late January.
    But others disagreed. "I think some Western growers have
decided they should be in the program for security reasons.
There's a lot of comfort in knowing you'll be guaranteed the
government's loan price of 52.25 cents a lb. Anyone outside the
program is subject to the wiles of the market," said Walter
Brown, market analyst for a major California cotton producer.
    Some cotton specialists said their expectations for
increased acreage might not be verified in Tuesday's planting
intentions report. "Anything the USDA is announcing now is
based on information they gathered before their cotton program
was announced (on March 20)," one analyst cautioned. She said
traders will get a better idea of next year's cotton output
when the USDA's planted acreage report is released on July 9.
    Brown took that opinion a step further. "I don't think
planted acreage is important. What counts is the abandonment
rate," the difference between acreage planted and acreage
harvested.
    Brown said the abandonment rate this year was "pretty high"
at 15.5 pct because of weather problems in key producing
states. "More normal would be about six pct," he said.


.I 16059
.C
earn
.W
IMATRON INC <IMAT> 4TH QTR LOSS.
    SAN FRANCISCO, March 27 -
    Shr loss 16 cts vs loss seven cts
    Net loss 3,450,000 vs loss 1,508,000
    Sales 56,000 vs 1,187,000
    Avg shrs 22,568,000 vs 20,591,000
    Year
    Shr loss 38 cts vs loss 29 cts
    Net loss 7,977,000 vs loss 6,005,000
    Sales 3,699,000 vs 2,391,000
    Avg shrs 21,111,000 vs 20,578,000


.I 16060
.C
ship;crude;
.W
NATO CALLS ON GREECE AND TURKEY TO AVOID FORCE.
    BRUSSELS, March 27 - Greece and Turkey's NATO allies today
called on both countries to avoid any action that could
aggravate an explosive situation in the Aegean and "avoid
recourse to force at all costs."
    After an emergency meeting of NATO ambassadors, a statement
was issued saying "the present situation damages the interests
of Greece and Turkey, and of the Alliance as a whole."
    Secretary-General Lord Carrington also offered himself as a
mediator in the dispute on the Western Alliance's southern
flank.
    The meeting was called after reports that warships of both
countries were sailing towards a disputed oil exploration zone
of the Aegean.
    The statement said the tensions in the area had reached a
serious level and called on both countries to begin immediate
discussions. "Any intensification would make things worse," it
added.
    No attempt was made at the meeting to resolve the complex
dispute which was aimed at damage-limitation. Carrington said,
"I am of course anxious to help in any way I can, provided that
both Greece and Turkey, and the other allies, wish me to do so."


.I 16062
.C
acq
.W
PLAZA GROUP COMPLETES MERGER TRANSACTION.
    CHICAGO, March 27 - <Plaza Group> said it completed a
transaction in which it merged its wholly owned subsidiary,
Flyfaire International Inc, into Shefra Inc, a public company,
in return for a controlling interest in Shefra.
    With completion of the merger, Shefra changed its name to
Flyfaire International Inc.
    Flyfaire, with annual sales of 100 mln dlrs, is engaged in
the wholesale vacation travel business.


.I 16063
.C
earn
.W
CONAGRA INC <CAG> REGULAR DIVIDEND SET.
    OMAHA, NEB., March 27 -
    Qtly div 14-1/2 cts vs 14-1/2 cts prior
    Pay June One
    Record April 24


.I 16065
.C
earn
.W
LLC <LLC>, AMALGAMATED REPORT SIX MONTHS NET.
    DALLAS, March 27 - Valhi Inc reported earnings of LLC Corp
and the Amalgamated Sugar Co for the six month period ended
December 31.
    Effective March 10, Amalgamated merged into LLC, which
changed its name to Valhi. The following results reflect the
operations of the companies prior to the merger.
    LLC Corp reported net income of 18.4 mln dlrs or 60 cts a
share on revenues of 55.6 mln dlrs compared to 23.2 mln dlrs or
75 cts a share on revenues of 79.3 mln dlrs a year ago.
   This year's net includes an extraordinary loss of 201,000
dlrs and a gain of 4.7 mln dlrs. 1985's net included an
extraordinary gain of 6.3 mln dlrs, Valhi said.
    Amalgamated reported net income of 10.65 dlrs per share or
69.7 mln dlrs on revenues of 371.3 mln dlrs compared to a net
loss of 700,000 dlrs or 10 cts a share on revenues of 254.7 mln
dlrs last year.
    Valhi said effective December 31, it changed its fiscal
year-end from June 30 to December 31.



.I 16066
.C
interest
.W
GROS DENIES COURT ACTION AGAINST BRAZIL.
    BRASILIA, March 27 - Central Bank president Francisco Gros
denied rumours that foreign creditors had filed court actions
against Brazil to seek payment of its 109-billion dlr debt.
    "There is no court action against Brazil," Gros said in a
television interview.
    Brazil last month suspended interest payments on its 68
billion dlr debt to commercial banks and yesterday suggested an
extension of short-term credit lines for 60 days until May 31.
    Media reports said some banks rated as small among Brazil's
700 creditors had filed lawsuits against the decision to
suspend interest payments.
    Gros said negotiations with the commercial creditors would
start within two weeks, when he and Finance Minister Dilson
Funaro attend council meetings of the International Monetary
Fund (IMF) in Washington.
    "Brazil is facing the issue very carefully. We are seeking a
negotiation that will give the country space to grow, because
only with growth will we be able to meet our commitments," Gros
said.


.I 16067
.C
money-fx;gold;
.W
TALKING POINT/GOLD.
    By Solange De Santis
    Toronto, March 27 - The price of gold bullion and share
prices of North American gold stocks are benefiting from
continued weakness in the U.S. dollar, analysts said.
    "There's been a tug of war between the (currency)
speculators and the central banks over the U.S. dollar and it
looks like the game has gone to the speculators," said John Ing
at Maison Placements Canada Inc.
    The dollar remained close to post-World War II lows today
against the Japanese yen despite buying by several central
banks, including the Federal Reserve, dealers said.
    A drop in the dollar means uncertainty and gold is the
traditional hedge against uncertainty, Ing noted.
    Another analyst, Richard Cohen at Brown Baldwin Nisker Ltd,
noted that "a lot of foreign investors are holding U.S. dollars.
If they see they are losing money, they move back into gold."
    A dollar decline also has inflationary implications, Ing
said, adding that Maison Placements sees inflation rising to a
four pct annual rate from the current level of about three pct.
    Ing predicts gold will peak at 510 dlrs this year from its
current level of about 416 dlrs per ounce. Cohen sees an
average price of 425 dlrs, and another analyst, Michael
Pickens, at Yorkton Securities, puts the average at 450 dlrs,
with a possible spike above 500 dlrs.
    However, gold stocks in the U.S. and Canada have risen far
faster in recent months than the price of the metal itself,
causing concern among analysts that a correction lies somewhere
in the future. But for now, all analysts say there is no sign
the buying pressure is slowing down. "The stocks have run an
incredible way," Cohen said.
    On U.S. markets today, ASA Ltd <ASA> rose 4-1/8 to 61-1/2,
Campbell Red Lake Mines <CRK> was up 1-3/8 and Newmont Gold
<NGC> increased 1-1/2 to 31-1/4.
    The Toronto Stock Exchange gold index today was up 268
points at 8067.90. Hemlo Gold gained 1-1/4 at 26-3/4, LAC
Minerals was up 1-5/8 at 41, Placer Development rose 1-1/4 at
43-3/8 and Lacana Mining gained 1 at 18.
    Ing pointed out that the TSE gold index has gained 51 pct
since December 31, 1986, while the price of bullion has
increased six pct. "Canadian golds have been the top performing
index this year," he noted.
    In the U.S., there is "too much money chasing too few
stocks," Pickens said. And many investing institutions such as
pension funds and insurance companies still have excess cash,
he added.
    Cohen also noted that today's silver price break through
six dlrs an ounce indicates small investors are entering the
precious metals market and he expects the ratio between gold
and silver prices to narrow.


.I 16068
.C
earn
.W
SOUTHWESTERN BELL<SBC> VOTES SPLIT, UPS PAYOUT.
    ST. LOUIS, March 27 - Southwestern Bell Corp said its board
voted a three-for-one stock split and increased the dividend
8.8 pct to 1.60 dlrs a share.
    On a post-split basis, the increased dividend will be 58
cts a share, payable May One to holders of record April 10.
    Southwestern Bell said the stock split is
its first. It said shares will be mailed May 22, record May
Four.


.I 16069
.C
earn
.W
HONEYWELL BULL SEES REVENUE GROWTH.
    NEW YORK, March 27 - Honeywell Bull Inc, owned by Honeywell
Inc <HON>, <Cie des Machines Bull> and <NEC Corp>, said it
expects its 1987 revenues to increase 15 to 20 pct over its
current level of about 1.9 billion dlrs.
    Honeywell Bull president Jerome Meyer also told the press
conference the company was profitable, adding the company aimed
to improve profits over time.
    Honeywell Inc earlier today received 527 mln dlrs in cash
for the sale of 57.5 pct of its computer business to Bull and
NEC. Honeywell will retain a 42.5 pct interest in Honeywell
Bull and Bull will own an equal amount.
    NEC owns 15 pct of the company.
    Meyer, who had been executive vice president of Honeywell
Information Systems, said Honeywell Bull would work closely
with NEC and Bull in both developing new products and marketing
computers to multi-national companies.
    "We haven't been growing as fast as we'd like, but we are
going to turn that around," Meyer said. He said business was 
soft in the U.S.
    He said the company was reorganizing its distribution
programs and its staff, reassigning and laying off selected
employees. He also said the company was hiring new workers.
    Honeywell Bull chairman Jacques Stern, who is also chairman
of Bull, said he believed the computer industry could be a fast
growing market for companies that provide the type of computers
customers want. "I don't believe in the slump of the market,"
he said.
    The computer company would offer open systems so that
customers would not be tied to a specific vendor or
architecture, and it will also focus on tying computers
together through communications networks.


.I 16072
.C
acq
.W
HANSON <HAN> TO SELL BOND'S DELIVERY SERVICE.
    NEW YORK, March 27 - Hanson Industries, the U.S. arm of
Hanson Trust PLC, said contracts have been exchanged in London
for the sale of Bond's Delivery Service to Rockwood Holdings
PLC for about 6.0 mln dlrs in cash.
    Completion is subject to Rockwood shareholder approval.
    In its most recent financial year, Bond's which was
purchased
by Hanson Trust Plc in its acquisition of Imperial Group PLC in
April 1986, made 960,000 dlrs pre-tax profit on sales of 13.6
mln dlrs.
    Net tangible assets are 5.2 mln dlrs, Hanson said.


.I 16074
.C
cpi
.W
U.S. PRICE DATA SUGGEST MODERATE INFLATION.
    NEW YORK, March 27 - Latest consumer price data indicate
U.S. inflation will be moderate in 1987 even though it will be
above last year's pace, economists said.
    "Inflation is not such a constructive factor as this time
last year, but it's not building up a large head of steam,"
said Allan Leslie of Discount Corp.
    U.S. consumer prices, as measured by the consumer price
index for all urban consumers, rose a seasonally adjusted 0.4
pct in February after a 0.7 pct January gain. Energy prices,
which fired January's data with a three pct rise, advanced a
more moderate 1.9 pct last month.
    The CPI came within the range of economists' expectations
and had little direct impact on U.S. financial markets.
    Among the key components of the report, transportation
prices rose 0.5 pct in February after a 1.5 pct January gain
reflecting smaller price appreciation for motor fuels and
declines in new car prices and finance charges.
    "There are no pronounced pressures at the retail level,"
said William Sullivan of Dean Witter Reynolds Inc.
    Economists said the latest CPI supports existing
expectations for an inflation rate of 3.5 to four pct in 1987.
    The CPI rose 1.1 pct from December 1985 to December 1986.
Without last year's energy price drop, it rose 3.8 pct.
    Economists said that upward pressure on import prices as a
result of the dollar's drop as well as the volatile energy
component warrant attention in case gains in these areas become
factored into the wider economic picture.
    "As long as those price rises do not become entrenched in
cost of living adjustments contained in labor contracts, thus
reducing international competitiveness, then the Federal
Reserve would probably be willing to tolerate four pct
inflation," said Larry Leuzzi of S.G. Warburg and Co Inc.


.I 16076
.C
acq
.W
WESTINGHOUSE INTERESTED IN MERGER OF RADIO UNIT.
    NEW YORK, March 27 - Westinghouse Electric Corp <WX> said
it is still open to a merger of its radio operations with
General Electrics Co's <GE> NBC radio operations.
    "We have left the door open and GE is reassessing the
merger and so are we," Westinghouse chairman Douglas Danforth
told Reuters at the conclusion of a meeting before analysts.
    Danforth said he continues to see value in a merger between
Westinghouse's radio operation and those of NBC. 
    Discussions with NBC on the merger of the two companies'
radio units were suspended in December.
    Danforth reaffirmed that Westinghouse is interested in
acquisitions, saying the company is leaning toward acquisitions
in the 300 mln to 500 mln dlr range. He said, however, that
larger acquisitions are possible if they are the right fit.
    Danforth, who earlier today said he expects earnings growth
in the double-digit range through 1989, said he is comfortable
with analysts' predictions of 4.80 dlrs to 5.30 dlrs a share
this year. In 1986 the company earned 4.42 dlrs a share.
    He said the company has targeted waste energy systems and
hazardous waste removal, as some of the emerging growth areas
for the company.


.I 16077
.C
earn
.W
COMPUTER NETWORK TECHNOLOGY <CMNT> 4TH QTR LOSS.
    MINNEAPOLIS, March 27 -
    Shr loss eight cts vs loss eight cts
    Net loss 655,457 vs loss 566,429
    Rev 258,712 vs nil
    Year
    Shr loss 31 cts vs loss 26 cts
    Net loss 2,725,882 vs loss 1,759,675
    Rev 349,070 vs nil
    NOTE: Company's full name is Computer Network Technology
Corp. 1985 revenues n.a. because 1986 was initial year of
product revenue.


.I 16080
.C
ship
.W
BIFFEX LOOKING TO JOIN NEW FUTURES EXCHANGE.
    LONDON, March 27 - The Baltic International Freight Futures
Exchange (BIFFEX) said it agreed to pursue negotiations with
other futures markets on the Baltic Exchange with a view to
merging into a new futures exchange.
    Legal advisers have already been instructed to implement
amalgamation of the London Potato Futures Association, the Soya
Bean Meal Futures Exchange and the London Meat Futures
Exchange.
    The London Grain Futures Market has also discussed merging
with the other markets.
    The aim of the merger is to seek Recognised Investment
Exchange status as required by the 1986 Financial Services Act.


.I 16082
.C
earn
.W
<CANADIAN SATELLITE COMMUNICATIONS> SIX MTHS NET.
    MONTREAL, March 27 -
    Period ended February 28
    Oper shr profit six cts vs loss 15 cts
    Oper profit 474,000 vs loss 1,175,000
    Revs 17,946,000 vs 9,271,000
    Note: Current shr and net exclude tax gain of 513,000  dlrs
or five cts share
    full name <Canadian Satellite Communications Inc>


.I 16084
.C
acq
.W
FRENCH MINISTERIAL MEETING HELD ON CGCT SALE.
    PARIS, March 27 - Finance Minister Edouard Balladur,
Industry Minister Alain Madelin and Telecommunications Minister
Gerard Longuet met for more than an hour today to discuss the
imminent sale of the French telephone switching group <Cie
Generale de Constructions Telephoniques>, a spokesman for
Longuet said.
    No decision was announced as a result of the meeting, and
the French government has given itself until the end of next
month to choose between the candidates.
    The sale of CGCT, which controls 16 pct of France's
telephone market, has been priced at 500 mln francs, and three
international consortia are battling for the right to buy it.
    West Germany's Siemens AG <SIEG.F> has teamed up with the
French group Jeumont-Schneider, in opposition to a bid from the
U.S. Group ATT <T.N> and the Dutch Philips Telecommunications
BV <PGLO.AS> in association with the French telecommunications
firm SAT <Societe Anonyme de Telecommunications>.
    A third bid has been lodged by Sweden's AB LM Ericsson
<ERIC.ST>, allied with French defence electronics group Matra
<MATR.PA> and Bouygues SA <BOUY.PA>.


.I 16085
.C
earn
.W
DEAN FOODS CO <DF> 3RD QTR NET.
    CHICAGO, March 27 -
    Shr 35 cts vs 40 cts
    Net 9,246,000 vs 10,719,000
    Sales 367.9 mln vs 315.1 mln
    Nine mths
    Shr 1.03 dlrs vs 1.13 dlrs
    Net 27,490,000 vs 30,160,000
    Sales 1.06 billion vs 915.3 mln


.I 16086
.C
earn
.W
DEAN FOODS CO <DF> RAISES DIVIDEND.
    CHICAGO, March 27 -
    Qtly div 13-1/2 cts vs 11-1/2 cts prior
    Pay June 15
    Record May 22



.I 16087
.C
earn
.W
DOSKOCIL <DOSK> SHAREHOLDERS VOTE REVERSE SPLIT.
    HUTCHINSON, Kan., March 27 - Doskocil Cos Inc said its
shareholders approved a one-for-10 reverse stock split, which
is expected to become effective by April 30.
    The company said the reverse split will reduce the its
outstanding shares to about six mln from 60 mln.


.I 16088
.C
heat;cpi;crude;nat-gas;propane;
.W
U.S. ENERGY COSTS ROSE IN FEBRUARY BY 1.9 PCT.
    WASHINGTON, March 27 - Consumer energy costs rose 1.9 pct
in February following a sharp rise last month, the Labor
Department said.
    The February increase in the overall energy costs,
including petroleum, coal and natural gas, followed a 0.2 pct
drop in December and a 3.0 pct rise in January, it said.
    Energy prices were 12.2 pct below year-ago levels.
    The department's Consumer Price Index showed that the cost
of gasoline rose in February by 4.2 pct, after a 6.6 pct rise
in January.
    Gasoline prices were nonetheless 18.0 pct below their
levels as of February 1986.
    Also, the category including fuel oil, coal and bottled gas
rose in February by 3.8 pct, putting it 14.9 pct under the
year-ago figure.
    The index also showed that natural gas and electricity were
unchanged last month, but down 3.5 pct from the February 1986
figure, the department said.
    The index has been updated  o reflect 1982-84 consumption
patterns; previously, the index was based on 1972-73 patterns.


.I 16090
.C
wheat;grain;
.W
COLD AIR A THREAT TO SOME U.S. HARD WHEAT AREAS.
    KANSAS CITY, March 27 - A cold air mass working its way
south from Canada may pose a threat to developing hard red
winter wheat in Oklahoma, according to Eugene Krenzler, wheat
specialist for the Oklahoma Cooperative Extension.
    "There is some threat. Some of the crop is far enough along
so that it's probably vulnerable," Krenzler said.
    Accu Weather meteorologist Dale Mohler said cold air moving
from the north could put temperatures in the middle 20's
fahrenheit as early as tonight, depending on development of a
low pressure area over southeast Colorado which could stall the
system.
    If impeded by the low-pressure area, the cold air could hit
Oklahoma and Texas as late as Monday morning. Temperatures
could stay in the mid-20's for up to eight hours, Mohler said.
    Krenzler said less than 10 pct of the Oklahoma wheat crop
has advanced to boot stage. The closer to that stage the more
vulnerable the head of the wheat is to cold weather, he said.
    "We can handle probably an hour or so down to 25 or 26
degrees (fahrenheit)," Krenzler said, "as long as we don't have
a lot of wind."
    "If we do get six hours down below 25 degrees I'd say we
have a good chance of significant damage to the heads," he
said.
    Krenzler said early planted stands in the north-central and
southwestern parts of the state are probably most vulnerable.
Crops in the panhandle of Oklahoma and Texas are less developed
and have some snow cover protection from the cold, he noted.


.I 16094
.C
earn
.W
EDUCATION SYSTEMS <ESPC> YEAR NET.
    BELLEVILLE, N.J., March 27 - 
    Shr 27 cts vs 34 cts
    Net 174,390 vs 222,720
    Revs 4,948,622 vs 4,516,042
    Note: Current net includes non-recurring loss on
investments of 82,034.
    Full name is Education Systems and Publications Corp.


.I 16097
.C
acq
.W
******BORG-WARNER UP AMID RUMORS IRWIN JACOBS SOLD STOCK, ARBITRAGEURS SAY.
Blah blah blah.

.I 16102
.C
pet-chem
.W
HENLEY GROUP <HENG> UNIT WINS TAIWAN CONTRACT.
    HOUSTON, March 27 - Henley Group Inc's M.W. Kellogg Co unit
said it was selected by <Chinese Petroleum Corp> to design,
engineer and build a ethylene plant at Chinese
Petroleum's Kaohsiung refinery in Taiwan.
    Terms of the contract were not disclosed, but Kellogg said
the total cost of the plant will be 300 mln dlrs.
    Kellogg said engineering of the plant, which will have a
capacity of 400,000 tonnes a year, is already underway and
construction will begin in 1988.
    The plant will go into operation in 1990, Kellogg said.


.I 16103
.C
acq;ship;
.W
MCLEAN'S <MII> U.S. LINES SETS SALE OF ASSETS.
    CRANFORD, N.J., March 27 - McLean Industries Inc said its
two shipping subsidiaries -- UNITED States Lines Inc and United
States Lines (S.A.) Inc -- have agreed in principle to dispose
of substantially all their remaining operating shipping assets.
    The units have been operating under protection of Chapter
11 of the U.S. Bankruptcy Code since last November.
    McLean said U.S. Lines has a letter of intent with CSX
Corp's <CSX> Sea-Land Corp subsidiary to transfer assets of its
Transpacific/Hawaii/Guam Service to Sea-Land.
    McLean said Sea-Land has tentatively agreed to pay 125 mln
dlrs for six vessels, certain port facilities, and various
other equipment used in U.S. Lines' Transpacific service and
theree Lancer class vessels and subsidy rights owned by the two
McLean subsidiaries.
    As previously announced, U.S. Lines (S.A.) will transfer
its South American Service to <Crowley Maritime Corp>'s
American Transport Lines Inc subsidiary in return for a fixed
lease payment for the four Lancer class vessels and a
participation based on American Transport's South American
revenues.
    McLean said the agreement also calls for Crowley to release
U.S. Lines (S.A.) for any damages and unpaid charter hire for
three vessels leased to U.S. Lines (S.A.) by Crowley which have
been returned to Crowley.
    McLean said the minimum lease payments will be seven mln
dlrs and estimated revenue participation during the first four
years at about 16 mln dlrs. In addition, U.S. Lines (S.A.)
subsidiaries in Brazil and Argentina will be sold to American
Transport.
    The company said both agreements in principle have been
approved by directors of the companies involved, but still need
court, regulatory and lender approval.
    McLean said it is requesting the bankruptcy court to
schedule a hearing on its motion to approve the agreements,
adding that the court has granted the company's request to
extend for 90 days the period for the shipping companies to
file a proposed plan of reorganization.
    It said the planned transactions will leave McLean with no
significant shipping assets except 12 New York class vessels,
which are not in operation and are expected to be sold.
    McLean said its shipping units are returning the vessels
operating in foreign commerce to United States ports to permit
the planned transfer to purchasers.
    The company said U.S. Lines will maintain its weekly
service from the U.S. West Coast to Hawaii and Guam until the
vessels are transferred and the transaction is completed.


.I 16105
.C
cocoa
.W
COCOA BUFFER DIFFERENTIALS DETAILED.
    LONDON, March 27 - The International Cocoa Organization
(ICCO) council agreed standard price differentials for
different origin cocoas to form part of the buffer stock buying
and selling procedure, consumer delegates said.
    The buffer stock manager will accept offers for different
origin cocoas according to a sliding scale of price
differentials, under which Ghana cocoa will be pegged at a 137
stg premium to Malaysian.
    Thus, if the buffer stock manager was buying cocoa based on
a Malaysian price of 1,200 stg a tonne, he would accept Ghana
offers up to 1,337 stg.
    Differentials were fixed as follows,
 Country       Differential stg/tonne
 Malaysia           0
 Brazil            55
 Ivory Coast       67
 Cameroun          77
 Nigeria          120
 Togo             130
 Ghana            137
    Nigeria's differential is on "landed weight" terms. Shipping
weight terms will be accepted at a 15 stg discount to this
rate.


.I 16106
.C
acq
.W
******MINSTAR INC SAID IT SOLD ALL 10 MLN OF ITS BORG-WARNER SHARES.
Blah blah blah.

.I 16107
.C
cocoa
.W
COCOA COUNCIL MEETING ENDS AFTER AGREEING RULES.
    LONDON, March 27 - The International Cocoa Organization
(ICCO) council adjourned after agreeing buffer stock rules for
the 1986 International Cocoa Agreement, an ICCO spokesman said.
    The buffer stock will begin operations immediately, he
said.
    He confirmed delegate reports that the buffer stock manager
will trade cocoa by means of an offer system, and according to
fixed differentials for cocoa from different origins.
    Purchases from non-members will be limited to 15 pct of the
total and buying or selling operations in any one day will be
restricted to a maximum of 40 pct each for nearby, intermediate
and forward positions, he said.


.I 16108
.C
acq
.W
******MINSTAR INC SAID IT IS STILL INTERESTED IN ACQUIRING BORG-WARNER.
Blah blah blah.

.I 16109
.C
ship
.W
U.S. URGES RESTRAINT IN AEGEAN.
    WASHINGTON, March 27 - The United States said it was doing
what it could to ease tension in the Aegean as Greek and
Turkish warships headed for a possible clash over oil drilling
rights on the sea's continental shelf.
    State Department spokesman Charles Redman told reporters,
"We have urged both sides to exercise restraint and avoid any
actions which might exacerbate the situation."
    "In the light of the most recent developments, we are
consulting with the parties and with other interested allies on
means to reduce tensions," he added.
    Redman declined to elaborate on what Washington was doing,
but he said an emergency meeting of NATO ambassadors in
Brussels on the subject was only one path it was pursuing.
    He also refused to say which side was to blame for the
renewed confrontation, saying Washington was still trying to
ascertain all the facts, as Prime minister Andreas Papanderou
said Greece was prepared to tackle any aggressor.
    "The crucial point here is that these are two friends and
allies. We don't want to see tension rise and we are doing what
we can to see if we can help here," Redman said.


.I 16111
.C
oilseed
.W
CARGILL U.K. STRIKE TALKS ADJOURN TO TUESDAY.
    LONDON, March 27 - Talks between management and unions at
Cargill U.K. Ltd's oilseed processing plant at Seaforth
adjourned today without a solution to the three month old
strike, a company spokesman said.
    Negotiations will resume next Tuesday, he said.


.I 16113
.C
money-supply
.W
******CANADIAN MONEY SUPPLY M-1 FALLS 555 MLN DLRS IN WEEK, BANK OF CANADA SAID.
Blah blah blah.

.I 16114
.C
alum
.W
NEW LME ALUMINIUM CONTRACT WELCOMED BY TRADE.
    By Martin Hayes, Reuters
    LONDON, March 27 - The London Metal Exchange's, LME,
decision to introduce a dollar-denominated aluminium contract,
with the Port of Singapore listed as a delivery point, is a
positive move, physical traders and LME dealers said.
    Earlier this week the LME declared that a 99.70 pct minimum
purity aluminium contract would commence trading on June 1,
1987, alongside its long-established sterling-based 99.50 pct
contract.
    This is the LME's first dollar contract and non-European
delivery point, and the Board and Committee are looking at
Singapore as a delivery point for other contracts.
    Trade sources said the LME's new contract will conform with
existing industry practice, where 99.70 standard re-melt
material, priced in dollars, is most commonly traded.
    The location of a warehouse in Singapore is also a positive
move by the LME, given its ideal location for Australian and
Japanese traders, who would be able to place metal on to
warrant speedily and relatively inexpensively, they said.
    Hedging during the LME ring sessions becomes much simpler
with a dollar contract. At present pre-market trading is almost
exclusively dollar-based, but currency conversions have to be
done during the sterling rings, they added.
    LME ring dealers said the new contract would match more
closely trade requirements and possibly alleviate some of the
recent wide backwardations.
    Very little physical business is now done in 99.50 pct
purity metal, nearly all of which is produced in Eastern Bloc
countries, such as Romania.
    The Soviet Union also produces 99.50 pct, but has declined
as an exporter recently, they said.
    Some dealers said the new 99.70 contract may suffer from
liquidity problems initially, as business may continue to
centre on the present good ordinary brand (gob) contract, where
there are many holders of large short positions on the LME.
    But others said the new contract would soon attract trading
interest, given that much 99.70 metal has already been
attracted to the LME's warehouses by backwardations.
    The LME also has a much more viable liquidity base for a
new contract, compared to the Comex market in New York, where
high grade aluminium futures are not particularly active, they
said.
    Thus, it seems likely that the sterling contract will
eventually lose trading interest and volumes will decline. Like
standard zinc, which was superseded by a high grade contract,
gob aluminium will probably be replaced, although the process
in this case may take longer, they added.
    Forming a new contract and establishing a Singapore
warehouse are constructive moves by the LME but backwardations,
which make physical trading difficult, would not totally
disappear as a result, the trade sources said.
    These premiums for prompt metal have become a
semi-permanent feature over the last year, due to increased
business and volatility in traded options, and are presently
around 50 stg.
    Increasingly large granting of option positions has been
taking place. When some of these are declared and exercised at
the end of the relevant month, physical tightness and squeezes
around these dates are commonplace, they said.
    Listing Singapore as a delivery point allows Far Eastern
operators to deliver aluminium into a LME warehouse instead of
having to cover.
    But tightness and backwardations are seen continuing, even
though the LME's new option contracts widen the gap between the
declaration and prompt dates.
    These will be due on the first and third Wednesday of the
month, whereas at present most fall on the 20th and 25th.
    Backwardations will remain while operators continue to
grant options where potential tonnage to be delivered exceeds
aluminium stock levels, an LME option trader said.


.I 16115
.C
money-supply
.W
CANADIAN MONEY SUPPLY FALLS IN WEEK.
    OTTAWA, March 27 - Canadian narrowly defined money supply
M-1 fell 555 mln dlrs to 32.42 billion dlrs in week ended March
18, Bank of Canada said.
    M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, fell 559 mln dlrs to 74.86 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposit fell 439 mln dlrs to 177.30 billion dlrs.
    M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, fell 696 mln dlrs to 215.74 billion dlrs. MORE
 More

.I 16117
.C
acq
.W
CORNING GLASS WORKS<GLW> BUYS FIBER-OPTIC STAKE.
    CORNING, N.Y., March 27 - Corning Glass Works said it
bought a 50 pct interest in Technology Dynamics Inc, a
Woodinville, Wash., company involved in research and
development of fiber-optic sensors.
    The purchase price was not disclosed.
    Privately held Technology Dynamics plans to introduce its
first line of fiber-optic sensors later this year, Corning
Glass said.
  


.I 16118
.C
earn
.W
FIRST NATIONAL CORP <FTNC> 4TH QTR.
    DELAWARE, Ohio, March 27 -
    Shr loss 29 cts vs loss 15 cts
    Net loss 513,542 vs loss 263,708
    Revs 38,000 vs nil
    Year
    Shr loss 24 cts vs loss 10 cts
    Net loss 417,552 vs loss 142,010
    Revs 171,000 vs nil


.I 16119
.C
earn
.W
BEARD CO <BEC> YEAR LOSS.
    OKLAHOMA CITY, March 27 - 
    Shr loss 57 cts vs profit 3.02 dlrs
    Net loss 3,606,000 vs profit 8,294,000
    Revs 15.3 mln vs 23.9 mln
    Note: Net includes gains from sale of USPCI Inc <UPC> stock
of 1.5 mln vs 20.5 mln
    Year-ago net includes loss from discontinued operations of
10.3 mln.


.I 16120
.C
earn
.W
ESSEX COMMUNICATIONS CORP <ESSXA> YEAR LOSS.
    GREENWICH, Conn., March 27 - 
    Shr loss 47 cts vs loss 63 cts
    Net loss 1,450,000 vs loss 1,930,000
    Revs 14.7 mln vs 13.3 mln
    Note: Year-ago resulted restated to exclude Michigan cable
systems sold in 1985.


.I 16121
.C
earn
.W
DENNING MOBILE ROBOTICS INC <GARD> 4TH QTR LOSS.
    WOBURN, Mass., March 27 - 
    Shr loss nine cts loss 12 cts
    Net loss 585,866 vs loss 455,866
    Avg shrs 6,841,638 vs 3,651,505
    Year
    Shr loss 34 cts vs loss 54 cts
    Net loss 2,158,709 vs loss 1,931,397
    Avg shrs 6,296,701 vs 3,586,914
    Note: Company has no revs as it is in product development
stage. Shr and avg shrs data reflect 1-for-25 reverse split in
November 1986.


.I 16122
.C
earn
.W
SCOTT'S LIQUID GOLD INC YEAR OPER NET.
    DENVER, March 27 -
    Oper shr two cts vs 10 cts
    Oper net 162,300 vs 773,400
    Revs 16.6 mln vs 16.5 mln
    Avg shrs 8,282,480 vs 8,045,493
    NOTE: Excludes gains of 138,000 dlrs or two cts/shr vs
733,000 dlrs or nine cts from benefit of tax loss
carryforwards.


.I 16123
.C
income
.W
******LABOR DEPT REPORTS U.S. REAL EARNINGS ROSE 0.6 PCT IN FEB AFTER BEING UNCHANGED IN JAN.
Blah blah blah.

.I 16125
.C
income
.W
U.S. REAL EARNINGS ROSE 0.6 PCT IN FEBRUARY.
    WASHINGTON, March 27 - The average weekly earnings of U.S.
workers after adjustment for inflation and seasonal changes
rose 0.6 pct in February after being unchanged in January, the
Labor department said.
    The department had earlier reported that real earnings fell
0.3 pct in January but revised the figure to show earnings
unchanged.
    Between February this year and February, 1986, real
earnings rose 0.5 pct, the department said.
    The rise in February real earnings resulted from a 0.5 pct
increase in average hourly earnings and a 0.6 pct increase in
average weekly hours. That was partly offset by a 0.4 pct rise
in the consumer price index, which measures inflation, the
department said.
    Before seasonal adjustment, weekly earnings last month
averaged 307.59 dlrs, up from 305.13 dlrs in January and up
from 300.66 dlrs in February, 1986.
 Reuter...

.I 16127
.C
money-fx
.W
TAIWAN TO STUDY SUSPENDING FOREX CONTROLS.
    TAIPEI, March 28 - Premier Yu Kuo-Hua ordered financial
officials to quicken the pace of relaxing foreign exchange
controls and study the possibility of suspending the controls,
a cabinet statement said.
    The statement quoted Yu as telling Finance Ministy and
Central Bank officials the relaxation was needed to help reduce
Taiwan's surging foreign exchange reserves, which reached a
record 53 billion U.S. Dollars this month.
    Finance Minister Robert Chien told reporters his ministry
and the Central Bank would work jointly on new measures to ease
the controls, but he did not give details.
    Yu said the government could maintain the framework of the
foreign exchange controls while finding ways to ease them. The
controls would be used during emergency.
    Taiwan's reserves have resulted largely from its trade
surplus, which hit 15.6 billion dlrs in 1986 and 10.6 billion
in 1985. About 95 pct of the surplus was from Taiwan's trade
with the United States, according to official figures.
    But he said that while easing the controls would help
reduce the reserves, it would not do so substantially in a
short time.
    Economists and bankers said the new decision resulted from
growing pressure from the United States, Taiwan's largest
trading partner, which buys almost half the island's exports.
    Lu Ming-Jen, economic professor at Soochow University, told
Reuters: "The decision came a little bit late. But it was better
than never."
    Ko Fei-Lo, Vice President at First Commercial Bank, said
the government should rapidly relax its foreign exchange
controls and open its market wider to help balance trade with
its trading partners, especially the United States.
    "The liberalisation in both imports and foreign exchange
controls will not only help our trading partners, but also help
our own economic problems," he said.
    He said the mounting foreign exchange reserveshelped boost
Taiwan's money supply by 48.22 pct in the year to end-February.


.I 16129
.C
trade
.W
JAPAN'S CHIP MAKERS ANGERED BY U.S. SANCTION PLANS.
    TOKYO, March 28 - Japanese computer chip makers reacted
angrily to news the United States plans to take retaliatory
action against them for allegedly failing to live up to an
agreement on trade in computer microchips.
    Electronic Industries Association of Japan (EIAJ) Chairman
Shoichi Saba stated: "EIAJ believes that it is premature and
even irrational to attempt an assessment of the impact of the
agreement and our efforts to comply with it only six months
after concluding the agreement."
    "We urge U.S. Governmental authorities to reconsider the
decision made, to evaluate fairly the results of Japanese
efforts in implementing the objectives of the agreement, and to
resist emotional biases," he said.
    Yesterday, Washington announced plans to slap as much as
300 mln dlrs in tariffs on Japanese imports in retaliation for
what is sees as Japan's failure to comply with the terms of the
pact.
    The agreement, struck late last year after months of heated
negotiations, called on Japan to stop selling cut-price chips
on world markets and to buy more American-made semiconductors.
    To salvage the pact, Tokyo has instructed its chip makers
to slash production and has helped establish a multi-lateral
organisation designed to promote chip imports.
    Saba said that Japanese chip companies have pledged three
mln dlrs over the next five years to the new organisation and
expressed regret that no American company has seen fit to join.
    "This suggests that American semiconductor manufacturers may
not be really interested in participating in the Japanese
market," he said.


.I 16130
.C
earn
.W
OVERSEA-CHINESE BANKING CORP LTD <OCBM.SI> YEAR.
    SINGAPORE, March 28 -
    Shr 21 cts vs 20 cts
    Fin Div 8.0 cts gross vs 9.0 cts
    Group net 104.8 mln dlrs vs 100.9 mln
    Note - Fin div pay June 6, record May 19.


.I 16131
.C
earn
.W
UNITED OVERSEAS BANK LTD <UOBM.SI> YEAR.
    SINGAPORE, March 28 -
    Shr 26.9 cts vs 25.1 cts
    Fin Div 8.0 pct gross vs 8.0 pct
    Group net 106.1 mln dlrs vs 99.0 mln
    Note - Fin div pay May 25, record April 18.


.I 16132
.C
earn
.W
STRAITS TRADING CO LTD <STCM.SI> YEAR.
    SINGAPORE, March 28 -
    Shr 8.7 cts vs 7.7 cts
    Fin div 9.0 cts vs 9.0 cts
    Group net 23.5 mln dlrs vs 20.8 mln
    Turnover 212.7 mln dlrs vs 595.4 mln
    Note - Fin div pay May 27, record May 23.

.I 16133
.C
earn
.W
SINGAPORE LAND LTD <LNDH.SI> FIRST HALF FEB 28.
    SINGAPORE, March 28 -
    Shr 8.43 cts vs 9.61 cts
    Int div nil vs nil
    Group net 7.8 mln dlrs vs 8.9 mln
    Turnover 30.6 mln dlrs vs 33.5 mln
    Note - The company said group net profits for the year
ending this Aug 31 should amount to 13.5 mln dlrs.


.I 16134
.C
cocoa
.W
IVORIAN CHOSEN COCOA COUNCIL EXECUTIVE DIRECTOR.
    LONDON, March 28 - Edouard Kouame, Ivorian delegate to the
International Cocoa Organization (ICCO), was chosen Executive
Director of the ICCO, effective October 1, ICCO officials said.
    Kouame will succeed Dr. Kobena Erbynn of Ghana in the post.


.I 16136
.C
rubber
.W
MALAYSIA EXPECTS RUBBER SHORTAGE IN APRIL/MAY.
    KUALA LUMPUR, March 28 - Malaysia said it expects a natural
rubber shortage in April and May because of the effects of
current wintering on rubber trees.
    The expected shortage and stronger demand for rubber goods,
especially condoms and surgical gloves by consumers, is likely
to push up prices, the Malaysian Rubber Exchange and Licensing
Board said in its latest monthly bulletin.
    During the annual wintering period from February to April
rubber trees shed their leaves and latex output is very low.


.I 16137
.C
livestock;carcass;
.W
ZIMBABWE CONFIRMS HOOF-AND-MOUTH DISEASE.
    HARARE, March 28 - Zimbabwe has confirmed an outbreak of
the animal-borne hoof-and-mouth disease, which prompted
Botswana on Thursday to stop imports of almost all Zimbabwean
meat products.
    Agriculture Ministry Permanent Secretary Robbie Mupawose
said it had been found at a ranch in southwestern Matabeleland
province and that all measures were being taken to contain it
from spreading. "The effect of this outbreak on Zimbabwe's beef
exports is being examined," he added in a statement.
    Zimbabwe exports a wide range of meat products to
neighbouring states and some 8,000 tonnes of high-grade beef to
the European Community annually worth about 48 mln U.S. Dlrs.


.I 16138
.C
dlr;money-fx;
.W
U.S. BANKER PREDICTS FURTHER DOLLAR FALL THIS YEAR.
    ABU DHABI, March 28 - A leading U.S. Banker said the dollar
was likely to fall another five to 10 pct this year and an
improvement in the huge American trade deficit would be only
temporary at current world exchange rate levels.
    Kurt Viermetz, Worldwide Treasurer of <Morgan Guaranty
Trust Co>, told Arab currency traders meeting here that the
steady depreciation of the dollar had not gone far enough to
rein in U.S. Deficits on a lasting basis.
    Speaking at the 14th annual congress of the Interarab
Cambist Association, Viermetz said an agreement reached last
month among major industrial nations to steady the dollar
around current levels left many questions unanswered.
    "I cannot see any chance for a real turnaround (rise) in the
dollar," Viermetz said. "I believe there is room for a further
fall of five to 10 per cent in 1987."
    The United States, West Germany, Japan, France, Great
Britain and Canada -- G-6 -- agreed in Paris in late February
to stabilise major currencies around current levels.
    The accord came after months of transatlantic argument,
with Tokyo and Bonn claiming Washington's policy of talking the
dollar lower had made life impossible for West German and
Japanese exporters.
    The Paris accord also brought a pause to the continued
slide of the dollar engineered by a meeting in New York in
September 1985 when industrial nations agreed to depress the
value of the currency to help redress global trade imbalances.
    But Viermetz said Morgan Guaranty's economic models showed
that with no further change in exchange rates -- and continued
sluggish growth in West Germany and Japan -- the U.S. Trade
deficit would improve only temporarily.
    He said the deficit might fall to 145 billion dlrs this
year from 165 billion in 1986 and further improve to 120
billion in 1988 but by 1990, it would be back around 160
billion dlrs.
    "This is clearly unacceptable for the monetary authorities
and politicians in Washington," he said.
    Viermetz said it was only natural that markets should
attempt to test the credibility of the Paris accord, struck
when the dollar was trading at about 1.83 marks and 152.50 yen.
    Immediately before the historic 1985 New York agreement or
"Plaza Accord," the dollar had been trading at 2.84 marks and 240
yen.
    Viermetz said he believed major nations in Paris wanted to
see the dollar hold within a "loose range" of 1.75 to 1.90 marks
and 145 to 155 yen, with any attempt to push the U.S. Currency
lower being countered by central bank intervention.
    The dollar ended in New York yesterday at 147.15/25 yen --
its lowest level against the Japanese currency in roughly 40
years. It closed at 1.8160/70 marks.
    Viermetz also said he did not see the U.S. Federal funds
rate falling below six pct for fear of provoking an
uncontrolled fall in the dollar.
    But at the same time, worries about the international debt
crisis would mean there was little chance of a rise above 6-3/4
pct since this would increase loan costs to the third world.
    The Middle East foreign exchange conference brings together
more than 200 traders and bank treasury chiefs from the Arab
world and Arab banks in European and U.S. Financial centres.
    Formal discussions, which end today, have also centred on
the role of Arab banks in world financial markets, with bankers
urging them to adapt to a new global trend towards
securitisation of  business.
    Hikmat Nashashibi, President of the Arab Bankers
Association, said Arab banks have to shake off their old
mentality of commercial banking and concentrate more on
investment banking.


.I 16139
.C
money-fx
.W
OFFICIAL WANTS ARAB FUND TO HELP LEBANESE POUND.
    ABU DHABI, March 28 - Lebanese central bank Vice Governor
Meguerditch Bouldikian called for the establishment of an Arab
fund to assist the Lebanese pound, which has lost more than 80
pct of its value against the dollar since January 1986.
    Bouldikian told an Arab exchange dealers conference the
bank would continue to take measures to defend the currency.
    But he said Lebanon needed foreign support for its
war-battered economy now more than ever before. "We expect a
common effort between the central bank and Arab central banks
and monetary authorities to create an Arab fund to support and
preserve the value of the currency when needed," he said.
    Twelve years of civil war have devastated productive
sectors of the Lebanese economy and created gaping trade and
budget deficits.
    Bouldikian said recent government measures had succeeded in
reducing demand for imports and increasing exports. "These are
encouraging factors, but the war has not ended yet," he said.
    "We believe that with a just political solution acceptable
to all sides, confidence will return and this will benefit the
Lebanese pound and Lebanon."
    In the meantime, he said the central bank had four main
goals:
    1) to use surplus liquidity to finance the budget deficit
    2) to increase the role of commercial banks and non-bank
financing institutions in financing the deficit
    3) to limit the transfer of Lebanese pounds into foreign
currency deposits
    4) to protect the financial health of commercial banks.


.I 16140
.C
cocoa
.W
JAPAN JOINING INTERNATIONAL COCOA AGREEMENT.
    LONDON, March 28 - Japan is in the process of joining the
International Cocoa Organisation (ICCO), which will bring the
number of members in the body to 36, ICCO officials said.
    Japan is completing constitutional procedures necessary to
its accession to the ICCO and is expected to become an
importing member in three to four months, they said.


.I 16141
.C
ship;crude;
.W
TURKISH SHIP IN OIL ROW HEADS FOR AEGEAN.
    ANKARA, March 28 - A Turkish research ship, escorted by
warships and air force planes, left for the Aegean to press
Ankara's case in an escalating row with Greece over oil rights,
the semi-official Anatolian News Agency said.
    The ship set off this morning from the Dardanelles port of
Canakkale with flags flying and watched by sightseers, the
agency said.
    Prime Minister Turgut Ozal said last night the ship would
not go into international waters unless Greece did the same.
    "We are waiting for the first move from them," he told
Turkish Radio in London.


.I 16142
.C
ship;crude;
.W
PAPANDREOU SHOWS "RESTRICTED OPTIMISM" OVER CRISIS.
    ATHENS, March 28 - Greek Prime Minister Andreas Papandreou
expressed "restricted optimism" about a crisis with Turkey over
disputed oil rights in the Aegean Sea.
    Papandreou was speaking to reporters after briefing
opposition political leaders on the latest developments in the
row as a Turkish research ship escorted by warships and combat
aircraft headed for the Aegean.
    He and other political leaders spoke of qualified optimism
following a statement by Turkish Premier Turgut Ozal last night
that the research vessel would not enter disputed waters as
previously annnounced unless Greek vessels did so.
    The Prime Minister declined to answer reporters' questions
about an announcement last night that Greece had asked the
United States to suspend operations at one of the American
military bases here due to the crisis.
    But Opposition leader Constantine Mitsotakis told reporters
he thought the suspension would be temporary until the crisis
is resolved. A U.S. Defence Department official in Washington
said the station was still functioning.
    Communist Party leader Harilaos Florakis said here "the
climate is calmer today."
    Greek newspapers reported that the Greek army, navy and air
force had been moved to strategic Greek islands in the Aegean
and to the land border with Turkey at the Evros River.
    But there was no official word on military movements apart
from a comment by the government spokesman that the Greek navy
was no longer in port.
    The United States, NATO and the United Nations all called
on Greece and Turkey to exercise restraint.
    Greek U.N. Representative Mihalis Dounas said in a letter
to the secretary-general that the dispute was of a legal nature
and could be settled in the International Court in the Hague.


.I 16143
.C
money-fx
.W
CHINA POSTPONES PLAN TO SCRAP PARALLEL CURRENCY.
    PEKING, March 28 - Chinese Vice-Premier Tian Jiyun said
plans to scrap the country's parallel currency, Foreign
Exchange Certificates (FECs), had been postponed due to
objections from foreign businessmen and others.
    But Tian told a news conference the Chinese government
still considered FECs unsatisfactory.
    Asked about the current state of plans to abolish the FECs,
Tian said: "We have decided to postpone the question. As to
whether it will be done in the future, it will be done
according to the evolution of the situation."
    He said many people, including foreign businessmen, had
raised objections to the plan to abolish the certificates, and
added: "It is rather complicated."
    The FECs were introduced in 1980 for use by foreigners in
China. But they now circulate widely among local residents and
there is a big black market in the currency, though it is
theoretically at par with the ordinary Chinese currency,
renminbi.
    Tian said the government still considered that the FECs had
"many demerits and negative influences."
    Bank of China President Wang Deyan told Reuters earlier
this month that he thought it unlikely that the certificates
would be scrapped this year.
    Western diplomats and economists have said the Chinese
authorities are having trouble finding a suitable alternative.
    Vice-Premier Yao Yilin announced at a similar press
conference last year that the FECs would be abolished, saying
the government had decided it was ideologically unacceptable to
have two currencies circulating in China at the same time.


.I 16144
.C
trade
.W
NAKASONE SOUNDS CONCILIATORY NOTE IN CHIP DISPUTE.
    TOKYO, March 28 - Prime Minister Yasuhiro Nakasone sounded
a conciliatory note in Japan's increasingly bitter row with the
United States over trade in computer microchips.
    "Japan wants to resolve the issue through consultations by
explaining its stance thoroughly and correcting the points that
need to be corrected," he was quoted by Kyodo News Service as
saying.
    While expressing regret over America's decision to impose
tariffs on imports of Japanese electrical goods, Nakasone said
Tokyo was willing to send a high-level official to Washington
to help settle the dispute.
    Government officials said Japan would make a formal request
next week for emergency talks and that the two sides would
probably meet the week after, just days before the April 17
deadline set by Washington for the tariffs to take effect.
    Tokyo is expected to propose a joint U.S./Japan
investigation of American claims that Japanese companies are
dumping cut-price chips in Asian markets.
    Yesterday, Washington announced plans to put as much as 300
mln dlrs in tariffs on imports of certain Japanese electronic
goods in retaliation for what it sees as Tokyo's failure to
live up to their bilateral chip pact.
    That agreement, hammered out late last year after months of
heated negotiations, called on Japan to stop selling cut-price
chips in world markets and to buy more American-made chips.
    Nakasone's comments seemed distinctly more conciliatory
than those of his Trade and Industry Minister, Hajime Tamura,
who earlier today said Japan was ready to take "appropriate
measures" if Washington went ahead with the sanctions.
    Ministry of International Trade and Industry (MITI)
officials later sought to downplay the significance of Tamura's
remark and said that his main message was that the two sides
need to talk urgently about the issue.
    But they admitted that Japan was considering taking the
United States to GATT, the Geneva-based international
organization which polices world trade, if Washington imposed
the tariffs.
    Any Japanese action would probably be taken under Article
23 of the General Agreement on Tariffs and Trade (GATT), they
said. If that article were invoked, GATT would set up a panel
to consider the legality of the U.S. Action.
    But officials here said they hope that can be avoided. "It
may be wishful thinking but there is a possibility the United
States may lift its decision at an early date," Tamura said.
    In announcing the U.S. Sanctions yesterday, President
Ronald Reagan said he was prepared to lift them once he had
evidence that Japan was no longer dumping chips in world
markets and had opened up its own market to imports.
    Japanese government officials said they are confident they
can make the pact work.
    They said that the export of cut-price Japanese chips
through unregulated distributors has all but dried up after
MITI instructed domestic makers to cut output.
    While acknowledging that it is harder to increase Japanese
imports of American chips, MITI officials said that the
ministry is doing all it can to ensure that happens.
    The Ministry recently called on Japan's major chip users,
some of whom are also leading producers, to step up their
purchases of foreign semiconductors.
    A spokesman for one of the companies, Toshiba Corp <TSBA.T>
said his firm would do just that and could announce its plans
in the next week or so. He expects other Japanese companies to
do likewise.


.I 16146
.C
trade
.W
ISLAMIC BANKS ESTABLISH 50 MLN DLR TRADE PORTFOLIO.
    ISTANBUL, March 28 - The Islamic Development Bank (IDB) and
20 Islamic Banks signed an agreement to establish a 50 mln dlr
trade portfolio to finance trade among Islamic countries, IDB
sources said.
    They said IDB's share in the portfolio, which will only
finance exports and imports of the private sector, was limited
to up to 25 mln dlrs.
    The sources said shares in the porfolio could be traded or
redeemed by the IDB, adding that this was a major step in
establishing an Islamic financial market.


.I 16148
.C
ship;crude;
.W
TURKISH-GREEK AEGEAN TENSION ABATES.
    ANKARA, March 29 - Turkey"s standoff with Greece over Aegean
oil rights appeared at an end after the government said it had
been assured Athens would not start prospecting in disputed
waters.
    A Foreign Ministry statement last night hinted Turkey was
claiming victory. A Greek-based international consortium, North
Aegean Petroleum Co., Had given up plans to start searching for
oil in international waters east of Thasos island, it said.
    "In the same way it has been understood that Greece will
also not undertake oil activities outside its territorial
waters," the statement added.
    An Ankara Radio report monitored in London said Foreign
Minister Vahit Halefolu had called on Greece to engage in
dialogue over the dispute. It was impossible to resolve the
dispute by crises, he was quoted as saying.
    "We call on Greece to come and engage in a dialogue with us
- let us find a solution as two neighbours and allies should,"
he said.
    The radio said Halefoglu had briefed the leaders of a
number of the country"s political parties on the latest
developments.
    Turkey sent the survey ship Sismik 1 into the Aegean
yesterday, flanked by warships, to press its case but having
earlier said it would go into disputed waters, declared the
vessel would stay in Turkish areas.
    Prime Minister Turgut Ozal, in London on his way home after
heart surgery in the United States, is expected to receive an
ecstatic welcome from thousands of Turks when he returns today.
    He was in defiant mood last night, telling Turkish radio:
"We can never accept that Greece should confine us to the
Anatolian continent. If there are riches under the sea, they
are for mankind."
    Despite the end of the crisis, Turkish officials
acknowledged that the underlying dispute over delimiting the
continental shelf in the Aegean remained unsolved.
    Turkey alleged that the consortium"s plans would have
infringed the 1976 Berne agreement between the two countries,
which called for a moratorium on any activities until the
delimitation was agreed. Greece earlier this month declared it
considers the accord inoperative.


.I 16153
.C
crude
.W
BANK SEES MODEST RECOVERY IN GULF ARAB ECONOMIES.
    ABU DHABI, March 29 - The Emirates Industrial Bank has
predicted a modest economic recovery in the Gulf Arab states
following higher oil revenues.
    A bank study, carried by the Emirates news agency WAM, said
total oil revenues of the six Gulf Cooperation Council (GCC)
countries were likely to reach 39 billion dlrs this year from
33.5 billion in 1986.
    The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia
and the United Arab Emirates (UAE).
    The bank said the improvement would result from higher oil
prices made possible by last December's OPEC accord to restrain
overall group production.
    These curbs have pushed up oil prices from around eight
dollars a barrel in mid-1986 to around 18 dlrs.
    "All signs point to the possibility of a modest recovery in
the economies of these (GCC) countries, although this expected
growth will not be similar to that of the (1970s) boom years,"
the study said.
    It added, however, that GCC states would experience higher
budget deficits this year because of needs arising from past
recession and the difficulty of making fresh spending cuts.
    The study said the combined GCC bugdet deficits would rise
to 23.2 billion dlrs from 17.9 billion last year.
    It said lower oil exports cut the GCC states' combined
trade surplus to 18 billion dlrs in 1986 from 21.5 billion in
1985.
    The UAE suffered a 19.5 pct drop in gross domestic product
to 77.6 billion dirhams last year from 96.4 billion in 1985, it
added.


.I 16154
.C
money-fx
.W
ARAB BANKER SAYS TOO SOON FOR SINGLE CURRENCY.
    ABU DHABI, March 29 - Gulf Arab states must coordinate
economic policies more closely before moving towards their goal
of a unified currency system, the President of the Arab Bankers
Association said.
    Hikmat Nashashibi told a news conference at the end of an
Arab currency traders meeting: "We have to start with
coordination of fiscal policies as a prerequisite for a common
system of currencies ... There is quite a substantial way to go
yet."
    He said only then would a unified Gulf currency system be a
plausible project.
    The six nations of the Gulf Cooperation Council -- Saudi
Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab
Emirates --  have held a series of meetings this year to
examine linking their currencies to a single peg in a system
which bankers say could be modelled on the European Monetary
System (EMS).
    At present, five currencies are linked either officially or
in practice to the U.S. Dollar, while the Kuwaiti dinar is
pegged to a trade-weighted basket of currencies.
    A common currency system or EMS-style "grid" would, in
theory, foster regional trade by providing a basis for stable
exchange rates, but Nashashibi said inter-Arab trade is at a
very low ebb and capital flows between Gulf states remain
small. "Capital markets in the Arab world are still in their
infancy," he said.
    Nashashibi said lack of experience among Arab banks, a
paucity of financial instruments and a legal framework that
often does not recognise the western banking concept of
interest have hampered the growth of Arab markets.


.I 16155
.C
reserves
.W
CHINA FOREIGN RESERVES EXCEED 10 BILLION DLRS.
    PEKING, March 29 - China's foreign exchange reserves are
more than 10 billion dlrs, enough to cover import payments for
three to four months, Vice Premier Tian Jiyun said.
    He told a news conference that China also has considerable
reserves of gold. He gave no figure.
    The last published figure for foreign exchange reserves was
10.37 billion dlrs at end-September 1986, down from 10.47
billion at end-June and 12.59 billion at end-September 1985.


.I 16157
.C
money-fx
.W
ITALY RELAXES RESTRICTIONS ON LIRA IMPORTS.
    ROME, March 29 - Italy is to modify restrictions limiting
the amount of lira cash that can be brought in and out of the
country, the Foreign Trade Ministry said.
    A statement said Foreign Trade Minister Rino Formica has
signed a measure lifting currency regulations that currently
impose a 400,000 lire limit on the value of lira bank notes
that can be brought into Italy. It did not say when the new
measure would come into force.
    In future, there will be no limit to the amount of lira
bank notes both residents and non-residents can bring into
Italy.
    The statement said the 400,000 lire limit would remain for
Italian residents wishing to take cash out of the country, but
non-residents could re-export lira cash if they made
appropriate declarations at customs points.
    It said the lifting of the restrictions "reinforces the
international status of the lira and meets the requirements
expressed several times by foreign exchange dealers."


.I 16159
.C
money-fx
.W
ARAB FOREX ASSOCIATION ELECTS NEW CHAIRMAN.
    ABU DHABI, March 28 - The Inter-Arab Cambist Association
(ICA) elected Abdullah al-Dakhil of Kuwait's Burgan Bank its
new chairman, succeeding Hani Ramadan of Beirut Riyad Bank for
a three-year term, ICA officials said
    The annual meeting elected three Vice-Chairmen -- Ezzedine
Saidane of Banque Internationale Arabe de Tunis, Mohammed Osman
of Societe Bancaire du Liban and Walid Nasouli of Morgan
Guaranty Trust Co of New York.
    Ibrahim Buhindi of the Saudi National Commercial Bank in
Bahrain and Imad Bata of Finance and Credit Corp of Jordan were
elected Secretary and Treasurer, respectively.


.I 16161
.C
coffee
.W
COFFEE PRICES BAD NEWS FOR LATIN AMERICA -MINISTER.
    By Lisa Vaughan, Reuters
    LONDON, March 29 - A senior Nicaraguan official said a
recent plunge in coffee prices was economically and politically
disastrous for Latin American coffee-producing countries.
    Nicaraguan Foreign Trade Minister Alejandro Martinez Cuenca
was in London to brief International Coffee Organisation (ICO)
executive board producer members after a meeting last weekend
in Managua attended by eight Latin American coffee producers to
discuss the fall in coffee prices.
    London coffee prices slid 300 stg per tonne in March, to
1,279 stg from 1,580 stg at end-February.
    Martinez told reporters the price fall since the ICO failed
to agree export quotas on March 1 has had disastrous results on
Latin America, both economically and politically.
    He urged continued negotiations among coffee producers to
pave the way for a coffee export quota agreement by September.
    Coffee export quotas, used to regulate coffee prices under
an International Coffee Agreement, were suspended a year ago
when prices soared in response to a drought in Brazil.
    Central American economic ministers have estimated the
region will lose 720 mln dlrs in foreign exchange earnings in
1987 if coffee prices are not rescued by a quota arrangement,
Martinez said.
    He said ICO quota talks broke down last month because
consumer members lack the political will to fully support
commodity agreements, and because consumers tried to dictate to
producers.


.I 16162
.C
ship;crude;
.W
TURKEY LIFTS SURVEY SHIP ESCORT AS TENSION ABATES.
    ANKARA, March 29 - Turkey pulled warships back from close
escort of its Sismik 1 survey ship as the threat of conflict
with Greece over oil rights in the Aegean Sea abated.
    The semi-official Anatolian Agency said naval vessels ended
their close protection of the ship as it continued work in
Turkish waters but were following it at a distance.
    Popular newspapers headlined what they saw as Turkish
resolve and international pressure forcing Greece to pull back
from planned exploration in disputed international waters.
    "Intense United States and NATO efforts bore fruit: Greece
will stay in its national waters," said the daily Gunes. The
top-selling Hurriyet topped its front page with: "Our resolute
stand made Greece see reason."
    But two newspapers, Cumhuriyet and Milliyet, noted in
identical headlines -- "Crisis Frozen" -- that the basic
disagreement over exploration rights remained unsolved.
    The confrontation eased after the Turkish government said
it had been assured Athens would not begin prospecting in
disputed waters.


.I 16163
.C
trade
.W
TOKYO BIDS TO STOP CHIP ROW TURNING INTO TRADE WAR.
    By Rich Miller, Reuters
    TOKYO, March 29 - Japan is seeking to prevent its computer
chips dispute with the U.S. From erupting into a full-scale
trade war, government officials said.
    "We hope that the dispute on this specific issue won't have
an adverse effect on our overall relationship with the United
States," a Ministry of International Trade and Industry (MITI)
official said.
     On Friday, Washington announced plans for as much as 300
mln dlrs in tariffs on Japanese electronic goods for Tokyo's
alleged failure to live up to a bilateral computer chip pact.
    That agreement, reached last year after heated
negotiations, called on Japan to stop selling cut-price chips
in world markets and to buy more American-made semiconductors.
    Foreign Ministry officials immediately tried to isolate the
fall-out from the dispute by seeking to separate it from Prime
Minister Yasuhiro Nakasone's planned trip to Washington at the
end of April.
    While Japan has already done about all it can to make sure
the chip pact is working, the government is studying measures
it can take in other fields to defuse American anger and ensure
the trip's success, they said.
    "The perception of Japan in the (U.S.) Congress is very bad,"
one official told Reuters. "We would very much like to do
something to respond to that."
    In an apparent effort to prevent the chip dispute from
spreading to other areas, MITI officials sought to depict the
U.S. Action as a severe warning to Japanese semiconductor
makers, not to the government.
    Faced with a belligerent domestic chip industry and an
angry American Congress, the Japanese government has been
forced to walk an increasingly fine line in the semiconductor
dispute, trade analysts said.
    They said that it was an open secret that Japan's largest
chip maker, NEC Corp, was not happy with what it viewed as the
draconian measures MITI was taking to implement the pact,
included enforced production cuts.
    The angry response of Japanese chip makers yesterday to the
announcement of the U.S. Tariffs highlighted the difficulties
the government faces in taking further action.
    "Japanese semiconductor manufacturers have complied with the
U.S./Japan agreement," said Shoichi Saba, Chairman of the
Electronic Industries Association of Japan.
    He accused the U.S. Of being "irrational." He said the U.S.
Action had made the bilateral chip pact "meaningless."
    Saba's comments contrasted with those of Prime Minister
Yasuhiro Nakasone, who said Tokyo wanted to solve the dispute
through consultations.
    Japan is expected to send a high-level official to
Washington early next month to try to convince the U.S. Not to
go ahead with the tariffs on April 17.
    Trade analysts say Tokyo is likely to outline industry
plans to step up purchases of U.S. Chips and to propose a joint
investigation into Washington's allegations of chip dumping.


.I 16164
.C
grain;trade;
.W
U.S. SEES MORE HARMONY IN TALKS WITH FRANCE.
    WASHINGTON, March 29 - The U.S. Expects more harmonious
talks than usual during French Prime Minister Jacques Chirac's
first official visit this week as frequently rancorous disputes
between the two countries begin to fade.
    "The Libyan bombing is a thing of the past, the trade war
didn't happen and we have reached reasonably good cooperation
on terrorism," one U.S. Official told Reuters.
    "It looks like a reasonably harmonious visit in prospect,
more harmonious than usual."
    Since taking office a year ago, Chirac has been obliged to
deal with a series of potentially serious disputes with the
United States.
    During the U.S. Bombing of alleged terrorist targets in
Libya last April, France refused to allow British-based U.S.
Planes to overfly its territory, forcing them to take a
circuitous route. That angered Washington.
    The U.S. Officials, who asked not to be identified, said a
year ago Washington felt the French were not taking strong
enough action against terrorism. "Now they are. We're pleased
and they are pleased that we are pleased," one said.
    More recently, a dispute over U.S. Access to the grain
markets of Spain and Portugal after they joined the European
Community  threatened to become a trade war.
    In retaliation for what Washington saw as deliberate
Community moves to exclude U.S. Grain, the United States was
poised to impose swingeing tariffs on European Community food
imports and a major trade war was averted at the last minute.
    Last week, the forces of President Hissene Habre of Chad,
supported, trained and armed by Paris and Washington, scored a
major success by pushing Libyan troops out of their last bases
in northern Chad.
    A French official added: "There is also a common interest in
getting Japan to cut its trade surplus with the rest of the
world by opening up its markets."
    Although relations have improved markedly between the two
countries, many irritants remain. At the top of the list is the
Community's common agricultural policy (CAP).
    To Washington, as one official put it, "CAP is the root of
all evil" in international food trade because it subsidises
farmers and sells vast amounts of excess produce at below world
prices, thereby eating into U.S. Markets.


.I 16165
.C
earn
.W
BANK FUER GEMEINWIRTSCHAFT AG <BKFG.F> YEAR 1986.
    FRANKFURT, March 29 - Year ended December 31, 1986.
    Group net profit 30 mln marks vs 35 mln.
    Balance sheet total 61.50 billion marks vs 63.67 billion.
    Credit volume 42.00 billion marks vs 43.15 billion.
    Parent bank net profit 20 mln marks vs 20 mln.
    Transfer to trades union holding co 80 mln marks vs 80 mln.
    Payment to open reserves 20 mln marks vs 20 mln.
    Balance sheet total 48.67 billion marks vs 49.01 billion.
    Partial operating profit 182.6 mln marks vs 313.7 mln.
    Interest surplus 897.9 mln marks vs 981.1 mln.
    Surplus on commission 208.8 mln marks 188.1 mln.
    Ordinary expenditure 969.7 mln marks vs 909.7 mln.
    Earnings from subsidiaries through profit transfer
agreements 494.2 mln marks vs 54.2 mln.
    Earnings from writing back provisions 326.5 mln marks vs
65.6 mln.
    Published risk provisions 736.3 mln marks vs 224.0 mln.
    Credit volume 32.63 billion marks vs 33.51 billion.
    Group figures for 1986 exclude <BSV Bank fueer Sparanlagen
und Vermoegensbildung AG> which no longer consolidated.


.I 16169
.C
earn
.W
BFG PARTIAL OPERATING PROFITS FALL SHARPLY IN 1986.
    FRANKFURT, March 29 - Bank fuer Gemeinwirtschaft AG
<BKFG.F>, BfG, partial operating profits fell to 182.6 mln
marks in 1986 from 313.7 mln in 1985, new majority shareholder
Aachener und Muenchener Beteiligungs-AG <AMVG.F>, AMB, said.
    But total operating and extraordinary profits, including
earnings from currency and securities trading on the bank's own
account and earnings from the sale of holdings in other firms,
were more than double the previous year's level, AMB said.
    BfG's 1986 accounts were included in a prospectus for AMB's
capital increase, which is to finance the insurance company's
acquisition of 50 pct plus one share of BfG.
    Despite the fall in partial operating profits, BfG paid an
unchanged 20 mln marks into open reserves and transferred an
unchanged 80 mln marks to its trade union holding company,
<Beteiligungsgesellschaft fuer Gemeinwirtschaft AG>, from which
AMB has acquired the majority stake.
    The bank has said its business last year suffered from the
turbulence around the troubled trade-union-owned housing
concern Neue Heimat.
    AMB said the 500 mln mark drop in BfG's business volume to
50.1 billion marks affected the interest surplus.
    The interest surplus, which fell to 897.9 mln marks from
981.1 mln, was also depressed by the 0.1 point fall in the
interest margin to 1.9 pct.
    A rise in the surplus on commission to 208.8 mln marks from
188.1 mln was not enough to compensate for this.
    The rise in total operating profits enabled BfG to step up
risk provisions, with country risks particularly emphasised
because of the continuing difficulties of some countries.
    Disclosed risk provisions, which under West German
accounting rules do not necessarily reflect the full amount,
rose to 736.3 mln marks from 224.0 mln.
    BfG's parent credit volume eased to 32.63 billion marks in
1986 from 33.51 billion. Foreign debtors accounted for 24 pct
of this credit volume, and Latin American debtors accounted for
14.7 pct of total lending to foreigners.
    BfG posted extraordinary earnings from the sale of 25.01
pct of <Volksfuersorge Deutsche Lebensversicherung AG>, 74.9
pct of <BSV Bank fuer Sparanlagen und Vermoegensbildung AG> and
five pct of <Allgemeine Hypothekenbank AG>. The sale was linked
to AMB's acquisition of a majority of BfG.
    These sales show up as 494.2 mln marks from profit transfer
agreements and 326.5 mln from writing back risk provisions.


.I 16171
.C
dlr;money-fx;
.W
******DOLLAR OPENS AT A RECORD LOW FOR TOKYO AT 145.80 YEN - DEALERS.
Blah blah blah.

.I 16172
.C
dlr;money-fx;
.W
******Bank of Japan intervenes, buys dollars around 145.90-95 yen -- Tokyo dealers.
Blah blah blah.

.I 16173
.C
dlr;money-fx;
.W
******DOLLAR FALLS BELOW 145.00 YEN IN TOKYO -- DEALERS.
Blah blah blah.

.I 16174
.C
dlr;money-fx;
.W
******BANK OF JAPAN ALREADY PURCHASED ONE BILLION DLRS IN MORNING INTERVENTION - DEALERS.
Blah blah blah.

.I 16175
.C
dlr;money-fx;
.W
JAPAN CENTRAL BANK BUYS ONE BILLION DLRS IN TOKYO.
    TOKYO, March 30 - The Bank of Japan has already purchased
more than one billion dlrs in intervention since the opening
and continues to buy the U.S. Currency, dealers said.
    The central bank was supporting the dollar against the yen
amid heavy selling pressure from investment trusts and
securities houses which had pushed the dollar as low as 144.75
yen earlier this morning, they said.
    The dollar recovered slightly from the intervention and was
trading around 145.00, they added.
    It had opened in Tokyo at 145.80 yen.


.I 16178
.C
dlr;money-fx;
.W
******Sumita says he does not repeat not expect dollar to fall further.
Blah blah blah.

.I 16179
.C
dlr;money-fx;
.W
******Japan will continue to cooperate with other nations to stabilize dlr, Sumita.
Blah blah blah.

.I 16180
.C
dlr;money-fx;
.W
SUMITA SAYS HE DOES NOT EXPECT FURTHER DOLLAR FALL.
    TOKYO, March 30 - Bank of Japan governor Satoshi Sumita
said he does not expect the dollar to remain unstable and fall
further.
    He told a Lower House Budget Committee in Parliament that
the Bank of Japan would continue to cooperate closely with
other major nations to stabilize exchange rates.
    The central bank has been keeping extremely careful watch
on exchange rate movements since last week, he said.
    He said the dollar would not continue to fall because of
underlying market concern about the rapid rise of the yen.
    Sumita said the currency market has been reacting to
overseas statements and to trade tension between Japan and the
U.S. Over semiconductors.
    The yen's tendency to rise will prevent Japan from
expanding domestic demand and undertaking necessary economic
restructuring, he said.


.I 16181
.C
dlr;money-fx;
.W
DLR FALLS ON FEAR TOKYO WON'T HIKE DEMAND-MIYAZAWA.
    TOKYO, March 30 - Finance Minister Kiichi Miyazawa said
that the dollar's drop today to 145 yen is partly attributable
to the perception inside and outside Japan that the country has
failed to fulfill its promise to expand domestic demand.
    He told a Lower House budget committee in Parliament that
it was natural for other nations to think that Japan is not
doing enough because of the delay in the passage of the 1987/88
budget.
    The budget has been delayed by opposition boycotts of
Parliament to protest government plans for a new sales tax.


.I 16182
.C
money-fx
.W
JAPAN CAREFULLY CONSIDERING MONEY POLICY -- SUMITA.
    TOKYO, March 30 - Bank of Japan governor Satoshi Sumita
said the central bank will carefully consider its monetary
policy in light of the recent sharp fall of the dollar.
    Asked if the Bank of Japan will consider a further cut in
its discount rate, he said he now thinks the bank will have to
carefully consider its future money policy.
    He told a Lower House Budget Committee in Parliament that
credit conditions have been eased by the five discount rate
cuts by Japan since the beginning of last year.
    Japan must now be especially careful about a flare-up in
inflation, with money supply growth accelerating, he said.
    Sumita said the central bank would continue to make a
judgement on monetary policies while watching consumer prices,
exchange rates and economic and financial conditions both in
and outside Japan.
    Asked if the September 1985 Plaza agreement was a failure
because the dollar had fallen too far, Sumita said he still
thought the pact was a good one in the sense that it had
corrected the overvaluation of the dollar. But the Plaza accord
did not set any target for the dollar's fall, he said.
    The dollar's steep fall stems from the market's belief that
the trade imbalance will continue to expand, he said.


.I 16183
.C
gold
.W
PERU SAYS NEW GOLD DEPOSITS WORTH 1.3 BILLION DLRS.
    LIMA, March 29 - President Alan Garcia said Peru has found
gold deposits worth an estimated 1.3 billion dlrs in a jungle
region near the Ecuadorean border about 1,000 km north of here.
    He told reporters the deposits, located at four sites near
the town of San Ignasio, contained the equivalent of 100 tonnes
of gold.
    Garcia said the government would soon install a two mln dlr
treatment plant at Tomaque. It will extract enough ore to
provide an estimated 25 mln dlr profit by the end of this year,
he added.
    Garcia said the other gold-bearing deposits are located at
Tamborapa, Pachapidiana and a zone between the Cenepa and
Santiago rivers.


.I 16186
.C
trade
.W
BALDRIGE PREDICTS END OF U.S.-JAPAN TRADE DISPUTE.
    WASHINGTON, March 29 - The United States and Japan will
soon settle their trade dispute over semiconductors, U.S.
Commerce secretary Malcolm Baldrige said on television.
    Baldrige, referring to the U.S.-Japan trade agreement on
semiconductors, said: "Their government wants to live up to it.
Their industries haven't been doing it, and I think we'll have
a good settlement to spare both sides."
    "I think the Japanese understand full well that they haven't
lived up to this commitment," he said.
    He added: "I do not think there will be a trade war at all."
    On Friday, Washington announced plans to put as much as 300
mln dlrs in tariffs on Japanese electronic goods from April 17,
because of Tokyo's failure to observe the agreement.
    The officials said the tariffs would be ended as soon as
Japan started adhering to the agreement. But they said there
was little chance Japan could react quickly enough to avert the
higher tariffs.
    Baldrige said the Reagan administration hoped the strong
U.S. Action against Japan would convince Congress to tone down
protectionist trade legislation now being drafted.
    He denied the action had been taken for that reason.


.I 16190
.C
crude
.W
IRAQ SAYS IRANIAN OIL NETWORK ATTACKED.
    BAGHDAD, MarcKraq said its warplanes attacked the pipeline
network through which oil is pumped to Iran's main oil terminal
at Kharg Island in the northern Gulf.
    "Large numbers of our warplanes attacked the installations
where the pipelines .... Pump oil from Ganaveh to Kharg island,
turning them into rubble and setting them ablaze ...," a
military spokesman said.
    He did not give the exact location of the area attacked but
Ganaveh terminal is on the Iranian Gulf coast some 30 miles
northeast of Kharg Island, which itself has been attacked at
least 135 times since August 1985.


.I 16195
.C
acq
.W
BTR NYLEX RAISES OFFER FOR BORG-WARNER AUSTRALIA.
    SYDNEY, March 30 - <BTR Nylex Ltd> said it will increase
its takeover offer for Borg-Warner Corp's <BOR> listed unit,
<Borg-Warner (Australia) Ltd> (BWA) to five dlrs each from four
dlrs for all issued ordinary and preference shares.
    The new offer values the diversified auto parts
manufacturer's 27.22 mln ordinary shares and 13.22 mln first
participating preference shares at 202.2 mln dlrs.
    Formal documents will be sent to shareholders as soon as
possible, it said in a brief statement.
    BTR Nylex, which manufactures rubber and plastic products,
first bid for BWA in late January.
    As previously reported, Borg-Warner Corp, which owns 65 pct
of BWA's ordinary shares and 100 pct of the preferences,
advised a month ago that it would not accept the offer.
    This meant BTR Nylex's 50.1 pct acceptance condition could
not be met, BWA said in a statement reporting its parent's
decision.
    BWA advised shareholders to ignore the offer and said other
parties had expressed interest in bidding for it.
    But no other bid has yet emerged.
    BTR Nylex is a 59.5 pct-owned listed subsidiary of
Britain's BTR Plc <BTRX.LON>.


.I 16199
.C
earn
.W
******CRA Ltd 1986 net profit 138.2 mln dlrs vs 87.8 mln.
Blah blah blah.

.I 16200
.C
bop
.W
N.Z. QUARTERLY CURRENT ACCOUNT DEFICIT NARROWS.
    WELLINGTON, March 3 - New Zealand's current account deficit
for the quarter ended December 31, 1986 narrowed to 567 mln
dlrs from 738 mln, revised down from 742 mln, for the September
quarter and from 733 mln a year earlier, the statistics
department said.
    The deficit for the year ended December narrowed to 2.75
billion dlrs from 2.91 billion dlrs, revised down from 2.92
billion, for the year ended September. The deficit for calendar
1985 was 2.61 billion.
    The December quarter showed a 182 mln dlr surplus for
merchandise trade, unchanged from the September quarter surplus
which was revised down from 271 mln dlrs. The 1985 December
quarter showed a 13 mln dlr deficit.
    Imports for the December 1986 quarter were 2.655 billion
against 2.883 billion in the September quarter and 2.454 a year
earlier. Exports were 2.837 billion against 3.065 billion and
2.440 billion.
    Imports for the year ended December 1986 were 10.74 billion
dlrs compared with 11.14 billion in 1985. Exports were 11.20
billion against 11.36 billion.
    Government borrowing stood at 9.26 billion dlrs for
calendar 1986 against 3.15 billion for 1985. Borrowing in the
December quarter rose to 3.92 billion from 1.79 in the
September quarter and 611 mln a year earlier.
    Repayments stood at 5.5 billion for the year, up from 3.1
billion in 1985. Repayments in the December quarter accounted
for 1.4 billion dlrs against 260 mln in the September quarter
and 334 mln a year earlier.
    Official reserves totalled 7.205 billion dlrs at end
December compared with 4.723 billion at end September and 3.255
billion one year earlier.


.I 16202
.C
acq
.W
TRANSAMERICA SELLS OCCIDENTAL LIFE AUSTRALIA.
    MELBOURNE, March 3 - Equity investment company <Battery
Group Ltd> said it had agreed to buy <Occidental Life Insurance
Co of Australia Ltd> from TransAmerica Corp <TA> of the U.S.
For 105 mln Australian dlrs.
    The acquisition has been made possible by the efforts of
its major shareholder, <Pratt and Co Financial Services Pty
Ltd>, Battery Group said in a statement.
    The purchase will be partly funded by the issue of eight
mln shares at 4.50 dlrs each and four mln free options to the
Pratt Group, controlled by entrepreneur Dick Pratt, plus four
mln shares to professional investors at 4.50 each, it said.
    The balance will be funded by debt, Battery Group said.
    The acquisition is subject to the approval of its
shareholders.
    On completion of the share placements, Pratt Group will
effectively have 51 pct of Battery's enlarged capital, assuming
exercise of all options, it said. Battery now has 22 mln shares
on issue.
    Battery said Occidental Life is a major underwriter of
individual term life insurance and a recent but fast-growing
entrant in the individual account superannuation market.
    It has some 200 mln dlrs in funds under management.


.I 16203
.C
earn
.W
CRA LTD <CRAA.S> 1986 NET.
    MELBOURNE, March 3 -
    Net 138.20 mln dlrs vs 87.80 mln.
    Shr 24.8 cents vs 17.8
    Final div to announced after July 1, vs final 10 cents
making 15.
    Sales revenue 4.81 billion vs 4.69 billion
    Investment income 116.93 mln vs 60.61 mln
    Shrs 494.35 mln vs 494.22 mln.
    NOTE - Net is after tax 171.03 mln dlrs vs 188.52 mln,
interest 337.39 mln vs 308.68 mln, depreciation 352.32 mln vs
333.05 mln but before net extraordinary loss 250.28 mln vs
profit 28.03 mln.





.I 16204
.C
rubber
.W
MALAYSIA RE-IMPOSES EXPORT DUTIES ON RUBBER.
    KUALA LUMPUR, March 3 - The Malaysian government said it
has re-imposed export duties on rubber at 3/8 cent per kilo
after the gazetted price moved above the threshold price of 210
cents per kilo.
    The gazetted price, effective March 1, rose to 213-1/2
cents per kilo from February's 207.
    The duty for research remains at 3.85 cents per kilo and
the replanting duty is also unchanged at 9.92 cents.


.I 16205
.C
palm-oil;veg-oil;
.W
MALAYSIA RAISES DUTY ON PROCESSED PALM OIL.
    KUALA LUMPUR, March 3 - The government said it raised the
export duty on processed palm oil (PPO) to 64.06 ringgit per
tonne from 40.96 ringgit, effective from March 1.
    Export duty on crude palm oil (CPO) was unchanged at 16.06
ringgit per tonne.
    The gazetted price of PPO rose to 796.8604 ringgit per
tonne from 719.8286. That of CPO remained at 617.8238 ringgit.
    The export duty and gazetted price of palm kernel were left
unchanged at 191.15 and 955.75 ringgit per tonne respectively.


.I 16206
.C
earn
.W
******comalco ltd 1986 net profit 57.1 mln dlrs vs loss 69.1 mln.
Blah blah blah.

.I 16207
.C
earn
.W
COMALCO LTD <CMAC.S> 1986 NET.
    MELBOURNE, March 3 -
    Net profit 57.1 mln dlrs vs loss 69.1 mln.
    Net is equity accounted
    Pre-equity accounted net 39.90 mln dlrs vs loss 49.11 mln
    Pre-equity shr profit 7.1 cents vs loss 8.7
    Final div to be announced after July 1 vs first and final
1.0 cent.
    Sales 1.88 billion vs 1.78 billion
    Other income 52.75 mln vs 15.22 mln
    Shrs 560.61 mln vs same.
    NOTE - Net is after tax paid 46.85 mln dlrs vs credit 5.02
mln, interest 127.68 mln vs 117.19 mln, depreciation 109.29 mln
vs 100.73 mln and minorities 1.50 mln vs loss 331,000.
    But net is before net extraordinary loss 140.5 mln vs nil.
Extraordinaries comprise exchange losses 102.9 mln, provision
for Goldendale smelter closure costs 27.3 mln and increase in
future tax provision 10.3 mln.


.I 16209
.C
jobs
.W
JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT.
    By Jeff Stearns, Reuters
    TOKYO, March 3 - Japan's unemployment rate is expected to
continue to climb to about 3.5 pct within the next year from
January's three pct record, senior economists, including Susumu
Taketomi of Industrial Bank of Japan, said.
    December's 2.9 pct was the previous worst level since the
government's Management and Coordination Agency began compiling
statistics under its current system in 1953.
    "There is a general fear that we will become a country with
high unemployment," said Takashi Kiuchi, senior economist for
the Long-Term Credit Bank of Japan Ltd.
    The government, which published the January unemployment
figures today, did not make any predictions.
    "At present we do not have a forecast for the unemployment
rate this year, but it is difficult to foresee the situation
improving," a Labour Ministry official said.
    Finance Minister Kiichi Miyazawa said the government had
expected the increase and had set aside money to help 300,000
people find jobs in fiscal 1987 beginning in April.
    Prime Minister Yasuhiro Nakasone told a press conference
the record rate underlines the need to pass the 1987 budget
which has been held up by opposition to proposed tax reforms.
    The yen's surge has caused layoffs in the mainstay steel
and shipbuilding industries. Other export-dependent industries,
such as cars and textiles, have laid off part-time employees
and ceased hiring, economists said.
    Although the growing service industry sector has absorbed a
great number of workers the trend is starting to slow down,
said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank
Ltd's economics department.
    However, other economists disagreed, saying the service
sector would be able to hire workers no longer needed by the
manufacturing sector over the next five years.
    The economists said the service sector should grow as the
government stimulates domestic demand under its program to
transform the economy away from exports.
    Although Japanese unemployment rates appear lower than
those of other industrialised nations, methods for calculating
statistics make them difficult to compare, economists warned.
    "The three pct figure  could translate into a relatively
high figure if European methods were used," one economist said.
More than half of January's 170,000 increase in jobless from a
year earlier were those aged between 15 and 24, Sumitomo's
Tsukihara said.


.I 16210
.C
bop
.W
SOUTH KOREAN TRADE SURPLUS NARROWS IN FEBRUARY.
    SEOUL, March 3 - South Korea's customs-cleared trade
surplus narrowed to 110 mln dlrs in February from 525 mln in
January, provisional trade ministry figures show.
    In February 1986 there was a deficit of 264 mln dlrs.
    February exports rose to 2.87 billion dlrs, fob, from 2.83
billion in January and 2.30 billion in February 1986. CIF
imports were 2.76 billion against 2.31 billion in January and
2.57 billion in February last year.


.I 16214
.C
trade
.W
JAPAN MOVES TO TIGHTEN CHIP-EXPORT CURBS.
    TOKYO, March 3 - The Ministry of International Trade and
Industry (MITI) acted to tighten restrictions on microchip
exports to countries other than the U.S. To preserve a
U.S.-Japan pact on semiconductor trade, but major Japanese
chipmakers doubt its usefulness.
    A MITI spokesman said his ministry had asked chipmakers to
issue certificates to specified trading houses stating they are
authorised exporters.
    Trading houses applying for a MITI export licence will be
required to show such a certificate, but those without it will
not automatically be denied licences, he said.
    But some industry officials predicted any government
measures were likely to have limited effect as long as the
world semiconductor market remained weak.
    U.S. Government and industry officials have complained
repeatedly that Japanese chipmakers continue to sell at below
cost to third countries despite the July agreement.
    Japanese firms and officials in turn argue the flow of
cheap chips to third countries is due to grey-market sales by
third-party brokers, who seek to profit from the gap between
low prices in Japan and higher prices based on production costs
and set for Japanese makers under the agreement.
    The MITI spokesman said, "If the percentage of grey market
is increasing for one specific company, it suggests they are
distributing their products through their sales network knowing
they will be exported by some means. In that case we will ask
them what they are doing to reduce the figure."
    MITI earlier asked makers to cut output of certain chips by
10 pct in first-quarter 1987, spokesmen for the firms said.
    But they doubt the usefulness of the latest move. "As long
as there is a gap between prices set under the pact and market
prices, there will be people who want to exploit the gap to
make money," a Hitachi Ltd <HIT.T> spokesman said.


.I 16215
.C
jobs
.W
FINNISH UNEMPLOYMENT AT 6.7 PCT IN DECEMBER.
    HELSINKI, March 3 - Finnish unemployment was 6.7 pct in
December last year compared with 6.8 pct in November and 6.1
pct in December 1985, the Central Statistical Office said.
    It said 173,000 people were unemployed in December 1986,
174,000 in November and 157,000 in December 1985.


.I 16216
.C
reserves
.W
BANKERS SEE SHARP RISE IN THAI FOREIGN RESERVES.
    BANGKOK, March 3 - Thailand's improving economy will likely
cause foreign reserves to increase to at least five billion
dlrs by end-1987 from a record of nearly 4.2 billion at
end-February, private bankers said.
    Bank of Thailand statistics show foreign reserves rose to
3.95 billion at end-January from 3.03 billion a year earlier.
    Nimit Nonthapanthawat, chief economist at the <Bangkok Bank
Ltd>, said Thailand's strong export performance, its relatively
high interest rates, foreign participation in its stock market,
and growing foreign investment, especially from Japan,
contributed to the projected sharp rise.
    Thai exports rose 19.4 pct in 1986 and are expected to
expand another 15 pct this year, bankers said.
    A U.S. Embassy report said last month Thailand could
achieve five pct real gross domestic product growth in 1987, up
from a projection of 3.8 pct for 1986 and 3.7 pct in 1985.
    Nonthapanthawat said if economic growth continues at its
current pace and oil prices and major currencies remain stable
the five billion 1987 reserves target can easily be reached.
    Thailand calculates foreign reserves to include gold,
special drawing rights and convertible currencies. The target
is equivalent to five-and-a-half months' worth of imports.


.I 16217
.C
bop
.W
SWEDEN HAS CURRENT PAYMENTS SURPLUS IN 1986.
    STOCKHOLM, March 3 - Sweden had a 1986 current balance of
payments surplus of 7.6 billion crowns compared with a deficit
of 10.1 billion the preceding year, according to preliminary
figures from the central bank.
    The December current account had a 100 mln crowns deficit
against a yearago 200 mln deficit.December trade balance was
2.3 billion surplus against yearago two billion.
    The trade balance showed a 1986 surplus of 33.2 billion
crowns compared with a 15.8 billion surplus in 1985, the bank
said .


.I 16219
.C
earn
.W
FISONS PLC <FISN.L> YEAR TO END-1986.
    LONDON, March 3 -
    Shr 27.5p vs 24.3p
    Div 3.95p vs 3.34p making 6.5p vs 5.5p
    Pre-tax profit 85.1 mln stg vs 72.3 mln
    Turnover 702.6 mln vs 646.7 mln
    Tax 18.4 mln vs 15.2 mln
    Finance charges 4.1 mln vs 5.4 mln
    Minority interest 0.1 mln vs 0.5 mln
    Extraordinary debit, being closure and restructuring costs
4.9 mln vs 3.7 mln
    Operating profit includes -
    Pharmaceutical 49.8 mln vs 39.0 mln
    Scientific equipment 23.2 mln vs 19.2 mln
    Horticulture 8.0 mln vs 8.7 mln
    Note - company said it plans one-for-one capitalisation


.I 16220
.C
interest
.W
****** MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO THREE PCT - CREDIT SUISSE.
Blah blah blah.

.I 16221
.C
interest
.W
****** CORRECTED - MAJOR SWISS BANKS RAISE CUSTOMER TIME DEPOSIT RATES 1/4 POINT TO 3-1/4 PCT - CREDIT SUISSE.
Blah blah blah.

.I 16223
.C
money-fx
.W
PHILIPPINE PLANNING CHIEF URGES PESO DEVALUATION.
    By Chaitanya Kalbag, Reuters
    MANILA, March 3 - The Philippines must devalue the peso if
it wants its exports to remain competitive, Economic Planning
Secretary Solita Monsod told Reuters.
    "The peso/dollar rate has to be undercut to make our exports
more competitive," Monsod said an interview. "No question about
it. I'm saying you cannot argue with success. Taiwan, South
Korea, West Germany, Japan, all those miracle economies
deliberately undervalued their currencies."
    The peso has been free-floating since June 1984. It is
currently at about 20.50 to the U.S. Dollar.
    Finance Secretary Jaime Ongpin has said the government does
not intend to devalue the peso and wants it to be flexible and
able to continue to respond to market conditions.
    Monsod said Ongpin was looking at the exchange rate from
the point of view of finance. "If the dollar rate goes higher,
our debt service in terms of pesos gets higher, so the
financing is very difficult," she said. "But I am looking at it
in terms of the economy."
    She said she was not trying to oppose official policy.
    "I'm just saying, keep it competitive. I do not want it to
become uncompetitive because then we are dead."
    Monsod said, "The ideal movement in the peso/dollar rate is
a movement that will reflect differences in inflation (rates)
of the Philippines versus the other country. It's an arithmetic
thing."
    Official figures show Philippine inflation averaged 0.8 pct
in calendar 1986. Ongpin told reporters on Saturday it was
expected to touch five pct this year.
    He said the government and the International Monetary Fund
had set the peso/dollar 1987 target rate at 20.80.
    The peso lost 22.2 pct in value to slump to 18.002 to the
dollar when it was floated in 1984.


.I 16224
.C
acq
.W
U.K. CLEARS CONS GOLD U.S. PURCHASE.
    LONDON, March 3 - The U.K. Trade Department said it would
not refer Consolidated Goldfields Plc's <CGLD.L> purchase of
<American Aggregates Corp> to the Monopolies Commission.
    Cons Gold said last month that its <ARC America Corp> unit
had agreed to buy the Ohio-based company for 30.625 dlrs a
share cash, or 242 mln dlrs, in a deal recommended by the
Aggregates board.


.I 16228
.C
tin
.W
ZAIRE ACCEPTS TIN-EXPORT QUOTA, ATPC SAYS.
    KUALA LUMPUR, March 3 - Zaire agreed to limit its tin
exports to 1,736 tonnes for 12 months from March 1 in line with
an Association of Tin Producing Countries (ATPC) plan to curb
exports, the ATPC said.
    ATPC Executive Director Victor Siaahan told Reuters he
received a telex from Zaire indicating its willingess to take
part in the plan to limit total ATPC exports to 96,000 tonnes
for a year from March 1.
    Siaahan said Zaire is expected to produce 1,900 tonnes of
tin in calendar 1987, and that in 1986 its output and exports
were about 1,200 tonnes.
    The ATPC hopes to cut the 70,000-tonne world surplus by
20,000 tonnes and boost prices.
    All ATPC members except Zaire and Australia recently agreed
to adhere to the export quotas allocated them under the plan.
Australia said its quota of 7,000 tonnes was roughly equal to
its expected output this year.
    The ATPC consists of Malaysia, Indonesia, Thailand,
Bolivia, Australia, Nigeria and Zaire.
    China and Bolivia, important producers of tin, are not
members.


.I 16233
.C
money-fx;interest;
.W
U.K. MONEY MARKET DEFICIT FORECAST AT 350 MLN STG.
    LONDON, March 3 - The Bank of England said it forecast a
shortage of around 350 mln stg in the money market today.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 525 mln stg while bankers' balnces below target will take
out around 175 mln stg.
    Partly offsetting these outflows, exchequer transactions
and a fall in note circulation will add some 300 mln stg and 40
mln stg to the system respectively.


.I 16235
.C
money-fx
.W
SAUDI RIYAL DEPOSIT RATES EASE.
    BAHRAIN, March 3 - Saudi riyal interbank deposit rates
eased across the board in a dull market which was long in
day-to-day funds, dealers said.
    Today's quiet market continued a lull of several days in
which traders were said to be waiting on the sidelines ahead of
further clues to the direction of oil prices and the Saudi
economy.
    Dealers cited some borrowing interest in two, three, and
six-month deposits but said activity focused on short dates and
one-month deposits as banks tried to lend surplus funds.
    Spot-next was put at 5-3/4, 5-1/4 pct, down from six, 5-1/2
yesterday while one-week rates were steady at six, 5-1/2 pct.
    One-month deposits declined to 6-1/4, 1/8 pct from 6-1/2,
1/4 on Monday, while three months was barely changed at seven,
6-15/16 pct.
    The spot riyal was little changed at 3.7501/03 to the
dollar after quotes of 3.7498/7501 yesterday.


.I 16238
.C
crude
.W
PEMEX SIGNS 500 MLN DLR JAPAN LOAN FOR PIPELINE.
    TOKYO, March 3 - Mexican state oil firm Petroleos Mexicanos
(Pemex) signed for a 500 mln dlruntied loan from the
Export-Import Bank of Japan to finance its Pacific Petroleum
Project, Pemex Japan representative Tito Ayal said.
    No further details on the loan were immediately available.
    Ayala told an oil seminar the project, due for completion
in 1988, is aimed at improving distribution of oil products in
the domestic market, mainly along the Pacific coast.
    The project consists of a pipeline linking Nueva Teapa on
the Gulf of Mexico with Salina Cruz on the Pacific Coast, and
construction of the second phase of the Salina Cruz refinery.
    The project also includes construction of liquified
petroleum gas (LPG) storage tanks at Santa Cruz, additional
crude oil storage at both ends of the pipeline, an ammonia
complex at Lazaro Cardenas on the Pacific Coast and expansion
of the infrastructure of the port of Salina Cruz, Ayala said.
    Pemex will buy 80 mln dlrs worth of foreign equipment and
materials for the project, he said. The new pipeline will
enable Japan to load Mexico's Maya crude oil at Salina Cruz
rather than in the Gulf of Mexico. Pemex will also have some
LPG surplus available in Salina Cruz that may help Japan
diversify its supply sources of that product, he added.


.I 16240
.C
earn
.W
STC PLC <STCL.L> YEAR TO END-1986.
    LONDON, MARCH 3 -
    Shr profit 15.9p vs 2.25p loss
    Div 3p making 4.5p vs nil
    Turnover 1.93 billion stg vs 1.99 billion
    Pretax profit 134.2 mln vs 11.4 mln loss
    Tax 47.2 mln vs nil
    Operating profit 163.0 mln vs 92.7 mln
    Interest less investment income 13.8 mln vs 37.2 mln
    Exceptional debit 15.0 mln vs 66.9 mln
    Minorities 0.3 mln vs 0.4 mln
    Extraordinary credit 16.4 mln vs 42.0 mln debit
    Operating profit includes -
    International computers 90.2 mln vs 61.7 mln
    Communications systems 56.1 mln vs 48.7 mln
    Components and distribution 20.0 mln vs 1.5 mln
    Defence 9.4 mln vs 13.1 mln


.I 16241
.C
earn;alum;
.W
COMALCO SAYS LOWER COSTS HELPED RETURN TO PROFITS.
    MELBOURNE, March 3 - Comalco Ltd <CMAC.S> said its return
to profit reflected reduced costs, improved primary aluminium
prices and its withdrawal from a Japanese smelter venture.
    It said the earlier reported 57.1 mln dlr profit for the
year ended December 31 against a 69.13 mln dlr loss in 1985 was
also aided by lower interest rates on U.S. Dollar debt and
greater sales of bauxite and aluminium.
    Comalco said it expected to pay at least a four cents per
share final, dividend delayed until July 1 to take advantage of
proposed dividend imputation laws.
    This would make five cents for the year against a first and
final of one cent in 1985.
    Comalco said the aluminium industry continued to suffer
from low prices and excess capacity, though the weak Australian
dollar had helped earnings.
    Withdrawal from the <Showa Aluminium Industries KK> joint
venture had been recapitalised in expansion by the <New Zealand
Aluminium Smelters Ltd> project with Japan's <Sumitomo
Aluminium Smelting Co Ltd>, permitting repayments and increases
in liquid funds totalling 165 mln dlrs, it said.
    As previously reported Comalco's <Commonwealth Aluminium
Corp> unit has conditionally agreed to sell its smelter at
Goldendale, Washington, and port facilities at Portland, Oregon
to <Columbia Aluminium Corp>.
    Comalco said it had made a 27.3 mln dlr extraordinary
provision for Goldendale losses and closure costs but that if
the sales agreement were completed it would reduce the
provision made in the 1986 accounts.
    The other items in the total extraordinary loss of 140.5
mln dlrs were a 102.9 mln write-off of unrealised exchange
losses and 10.3 mln for an increase in future tax provision.


.I 16242
.C
earn
.W
CRA EXPECTS TO PAY FINAL DIVIDEND OF 10 CENTS.
    ME}LBOURNE, March 3 - CRA Ltd <CRAA.S> said it expected to
pay a final 1986 dividend of not less than 10 cents a share
after July 1, making 13 cents forthe year against 15 in 1985.
    The mining and smelting group earlier reported 1986 net
earnings rose to 138.2 mln dlrs from 87.8 mln in 1985, against
analysts' forecasts yesterday of 125 mln to160 mln.
    CRA said it was deferring consideration of a dividend until
later this year to provide the benefit of dividend imputation
to its shareholders. After July 1, dividends will be tax-free
to shareholders provided they come out of earnings on which the
full 49 pct company tax rate has been pid.
    The company operates on a substituted tax year, not the
fiscal year ending June 30, and as a result has incurred tax at
the 49 pct rate on 1986 earnings, CRA said in a statement.
    Consequently, it has funds available for distribution with
dividend imputed but is waiting to see the imputation
legislation before determining the final payout, it said.
    Despite the higher net earnings, CRA said 1986 was a poor
year for the minerals industry, with the notable exception of
gold producers.
    Prices for major metals expressed in real U.S. Dollars
declined to the lowest levels in about 50 years, it said.
    Fluctuating exchange and interest rates added volatility
and uncertainty, while the revaluation of the yen is leading to
substantial restructuring of Japanese industry, CRA said.
    World demand for metals is growing slowly. Inventories have
steadily declined, with supply and demand in better balance,
but overcapacity continues, CRA said.
    Turning to contributions to its earnings, CRA said
Bougainville Copper Ltd <BUVA.S> contributed 31.3 mln dlrs
while its share of Comalco Ltd's <CMAC.S> net was 37.8 mln.
    Net earnings from iron-ore operations were 111.8 mln dlrs
against 149.2 mln in 1985, it said.
    Lead, zinc and silver mining and smelting operations
incurred a net loss of 66.8 mln dlrs against a 38.1 mln loss in
1985, CRA said.
    Coal activities resulted in a net profit of 36.7 mln dlrs
against 34.1 mln, while salt raised its contribution to 4.7 mln
from 2.8 mln.
    CRA's share of earnings from the Argyle diamond project
amounted to 12.0 mln dlrs against nine mln in 1985.
    CRA said the main item in its 250.28 mln dlr extraordinary
loss was a 172.9 mln writeoff of unrealised foreign exchange
losses on borrowings as required by a new accounting standard.
    Other extraordinary items were 63.3 mln dlrs provided for
closures and writedown of assets and a 14.1 mln increase in
future tax provisions, CRA said.
    Cash flow continued at a high level, being 950.6 mln dlrs
before capital expenditure against 1.02 billion in 1985. The
strong cash flow, coupled with the proceeds of the 1986 rights
issue and the use of existing cash balances, enabled group debt
to be reduced by nearly 500 mln dlrs.
    CRA said it held forward contracts at year-end to buy 985
mln U.S. Dlrs to hedge part of its foreign debt. This cost 47.0
mln dlrs after tax, included in the net interest cost.


.I 16244
.C
trade
.W
SWISS CAPITAL EXPORTS RISE IN JANUARY.
    ZURICH, March 3 - Swiss capital exports rose to 4.64
billion francs in January after 2.54 billion in December and a
year earlier 3.64 billion, the Swiss National Bank said.
    New bond issues accounted for 4.12 billion of the total
after December's 2.15 billion, and credits 525.1 mln after
389.9 mln.
    In January 1985, before the National Bank ended the
distinction between notes and bonds, bond issues totalled 1.66
billion francs, notes 1.39 billion and credits 597.5 mln.


.I 16245
.C
trade
.W
CHINA CALLS FOR BETTER TRADE DEAL WITH U.S.
    By Mark O'Neill, Reuters
    PEKING, March 3 - China called on the United States to
remove curbs on its exports, to give it favourable trading
status and ease restrictions on exports of high technology.
    But the U.S. Embassy replied that Chinese figures showing
13 years of trade deficits with the U.S. Out of the last 15 are
inaccurate and said Peking itself would have to persuade
Congress to change laws which limit its exports.
     The official International Business newspaper today
published China's demands in a  editorial to coincide with the
visit of U.S. Secretary of State George Shultz.
     "It is extremely important that the U.S. Market reduce its
restrictions on Chinese imports, provide the needed facilities
for them and businessmen from both sides help to expand Chinese
exports," the editorial said.
     "The U.S. Should quickly discard its prejudice against
favourable tariff treatment for Chinese goods and admit China
into the Generalised System of Preference (GSP).
     "Despite easing of curbs on U.S. Technology exports in
recent years, control of them is still extremely strict and
influences normal trade between the two countries," it added
     The paper also printed an article by China's commercial
counsellor in its Washington embassy, Chen Shibiao, who said
that "all kinds of difficulties and restrictions" were preventing
bilateral trade fulfilling its full potential.
     He named them as U.S. Protectionist behaviour, curbs on
technology transfer and out-of-date trade legislation.
     The paper also printed a table showing that, since
bilateral trade began in 1972, China has had a deficit every
year except 1972 and 1977. It shows the 1986 and 1985 deficits
at 2.09 billion and 1.722 billion dlrs.
     A U.S. Embassy official said the U.S. Did not accept
Peking's trade figures at all, mainly because they exclude
goods shipped to Hong Kong and then trans-shipped to U.S. While
U.S. Figures are based on country of origin.
     He said that, if China wants to obtain GSP status, it will
have to lobby Congress itself to persaude it to amend several
laws which currently prevent Peking getting such status.
     The U.S. Trade Act of 1974 says that to qualify for GSP,
China must be a member of the General Agreement of Tariffs and
Trade (GATT), for which it applied in July 1986, and "not be
dominated or controlled by international Communism."
     The official said China was well aware of the laws, some
of which date to the anti-Communist early 1950's, but that
there is not sufficient political will in the U.S. To change
them.
     China has been the subject of about a dozen cases
involving anti-dumping in the U.S. Within the last two years,
which the U.S. Side won, he said.
     But, for the first time, China signed last week an
agreement which it itself initiated to voluntarily restrain
exports of at least two categories of steel goods, which may
lead the U.S. Side to withdraw the anti-dumping case, he added.
     Another diplomat said willingness to provide such
voluntary export restraints would be an important issue in
bilateral trade issues and in Peking's application to GATT.
     "China has the potential to disrupt world markets,
especially in textiles. Other GATT countries will be nervous
about China in this respect. But there is a precedent for other
centralled planned economies in GATT," the diplomat said.
     Poland, Czechoslovakia, Hungary and Romania are members of
GATT but none has China's massive market potential for imports
or its vast labour pool to produce cheap exports.
     In a speech today in the northeast city of Dalian, U.S.
Secretary of State George Shultz said his country welcomed
China's interest in participating in GATT.
     "The process of Chinese accession will not be accomplished
overnight -- the GATT rules were not designed for a large
economy of the Chinese type," Shultz said.
     "China can play an important role by actively joining GATT
discussions seeking to expand general trading opportunities and
enhance market access for exports worldwide. China can further
develop its foreign trade system so as to gain the maximum
benefit from its GATT participation," he said.
     The problems facing U.S.-China trade and GATT membership
are similar -- a pricing system which many foreign businessmen
regard as arbitrary and not related to actual costs, especially
for exports, and a de facto dual currency system.
     In a memorandum backing its application presented to GATT
last month, China said it was gradually reforming its economic
system and replacing mandatory instruction with "guidance
planning" and economic levers.
     The diplomat said that, to join GATT, China had much to
do.


.I 16246
.C
money-fx;interest;
.W
NO BUNDESBANK POLICY CHANGES EXPECTED THURSDAY.
    FRANKFURT, March 3 - The Bundesbank is unlikely to change
its credit policies at its central bank council meeting on
Thursday, as exchange rates and short-term interest rates have
stabilized over the past few weeks, money market dealers said.
    Attention in the money market is focused on tomorrow's
tender for a securities repurchase pact, from which funds will
be credited on Thursday, when an earlier pact expires, draining
16 billion marks from the system.
    The tender was announced last Friday, because carnival
festivities closed banks in Duesseldorf yesterday, and will
close banks here this afternoon.
    Because of the disruption to business from carnival,
minimum reserve figures for the start of the month are
unrealistic, making it difficult for banks to assess their
needs at the tender.
    Dealers said the Bundesbank would want to inject enough
liquidity in this week's pact to keep short-term rates down.
    But because of uncertainty about banks' current holdings,
the Bundesbank may well allocate less than 16 billion marks
this week, and top it up if necessary at next week's tender.
    "I would not be surprised if the Bundesbank cuts the amount
a little, to say 14 or 15 billion marks," one dealer said.
    "They would then stock it up at the next tender when the
need is clearer," he added.
    An earlier pact expires next week, draining 8.5 billion
marks from the system. Banks also face a heavy but temporary
drain this month from a major tax deadline for customers.
    Banks held 52.0 billion marks on February 27 at the
Bundesbank, averaging 51.0 billion over the whole month, just
clear of the 50.5 billion February reserve requirement.
    Call money traded today at 3.85/95 pct, up from 3.80/90
yesterday.


.I 16249
.C
cpi
.W
ITALY CONSUMER PRICES RISE 0.4 PCT IN FEBRUARY.
    ROME, March 3 - Italy's consumer price index rose 0.4 pct
in February compared with January after rising 0.6 pct in
January over December, the national statistics institute
(Istat) said.
    The year-on-year rise in February was 4.2 pct down from 4.5
pct in January and compared with 7.6 pct in February 1986.
    Istat said its consumer prices index for the families of
workers and employees (base 1985) was 109.1 in February against
108.7 in January and 104.7 in February 1986.


.I 16250
.C
crude
.W
MOBIL PLAN TO OPEN PEKING OFFICE, CHINA DAILY SAYS.
    PEKING, March 3 - Mobil Corp <MOB.N> of the U.S. Plans to
open an office in Peking to develop oil exploration
opportunities in China, the China Daily said.
    It quoted Mobil president Richard Tucker, currently in
Peking, as saying he is optimistic about investment prospects
in China and that Peking will continue to encourage foreign
private businesses to invest here.
    It said Mobil bought 73 mln dlrs of crude oil and oil
products from China in 1986 and sold it lubricant and
fertiliser, but gave no more details.


.I 16252
.C
acq
.W
KLM TO TAKE 15 PCT STAKE IN AIR UK.
    AMSTERDAM, March 3 - KLM Royal Dutch Airlines <KLM.A> said
it agreed to take a 15 pct stake in Air U.K. Ltd, a subsidiary
of British and Commonwealth Shipping Plc <BCOM.L>, in a
transaction worth around two mln stg.
   A KLM spokesman said KLM already cooperated closely with Air
UK, which runs 111 flights a week to Amsterdam's Schipol
airport from nine UK cities.
   British and Commonwealth Shipping said last week it held
preliminary talks about a KLM minority stake in Air U.K. But
gave no further details. KLM said it hoped the move would
attract more British feeder traffic to Amsterdam Airport.


.I 16254
.C
grain;corn;
.W
ZIMBABWE MAIZE HARVEST LOWER AFTER BUMPER CROPS HARARE, March 3.
- Zimbabwe's maize crop in 1986/87 (April/ March) is likely to
be slightly over 1.6 mln tonnes, against 1.83 mln in 1985/86,
Grain Marketing Board figures show.
    Maize exports for 1986/87 to January 31, 1987 totalled
315,000 tonnes, with about a further 40,000 tonnes expected to
be exported in February and March, against 285,000 tonnes in
1985/86. Domestic usage is estimated at 650,000-900,000 tonnes,
depending on how other crops are affected by current poor
rains. Last year's consumption was around 700,000 tonnes.
    Zimbabwe has around two mln stonnes of surplus maize in
storage, accumulated after two years of bumper harvests.


.I 16257
.C
reserves
.W
U.K. RESERVES SHOW UNDERLYING RISE IN FEBRUARY.
    LONDON, March 3 - Britain's gold and currency reserves
showed an underlying rise of 287 mln dlrs in February, after a
72 mln dlrs rise in January, the Treasury said.
    The underlying trend, which is a guide to Bank of England
operations to support the pound on foreign exchanges, is net of
borrowings and repayments.
    This was above market expectations for a 100 mln dlrs rise.
    The Treasury said the Bank of England used the opportunity
of strong demand to rebuild reserves after losses last autumn
and said the underlying rise was still relatively modest.
    Actual reserves rose by 305 mln dlrs in February to 22.26
billion dlrs, after rising 29 mln in January to 21.95 billion.
    Accruals of borrowings under the exchange cover scheme were
36 mln dlrs last month, after 163 mln in January, while
repayments were 16 mln dlrs after the previous 151 mln, a
Treasury spokesman said.
    Capital repayments totalled two mln dlrs. In January,
capital repayments totalled 14 mln dlrs, with a valuation
change that resulted in a fall of 41 mln dlrs due to the
quarterly rollover from the European Monetary Cooperation Fund
swap.
    The Treasury would not comment on the Bank of England's
market operations, but currency traders reported moderate Bank
of England intervention to curb upward pressure on the pound
today.
    A Treasury spokesman, commenting on the reserves figures,
said that the government does not want sterling either to rise
too far or to fall substantially from current levels.
    He noted that the Chancellor of the Exchequer Nigel Lawson
stressed this after the recent Paris currencies meeting.


.I 16258
.C
earn;alum;
.W
COMALCO SAYS LOWER COSTS HELP RETURN TO PROFITS.
    MELBOURNE, March 3 - Comalco Ltd said its return to profit
reflected reduced costs, improved primary aluminium prices and
its withdrawal from a Japanese smelter venture.
    It said the earlier reported 57.1 mln dlr profit for the
year ended December 31 against a 69.13 mln dlr loss in 1985 was
also aided by lower interest rates on U.S. Dollar debt and
greater sales of bauxite and aluminium.
    Comalco said it expected to pay at least a four cents per
share final dividend, delayed until July 1 to take advantage of
proposed dividend imputation laws.
    This would make five cents for the year against a first and
final of one cent in 1985.
    Comalco said the aluminium industry continues to suffer
from low prices and excess capacity, though the weak Australian
dollar had helped earnings.
    Comalco's Commonwealth Aluminium Corp unit said earlier it
has conditionally agreed to sell its Goldendale smelter in
Washington, and port facilities at Portland, Oregon to Columbia
Aluminium Corp. Comalco said its extraordinary provision of
27.3 mln dlrs costs for Goldendale losses and closure may be
reduced if the sales agreement were completed.


.I 16259
.C
acq
.W
ULTRAMAR SELLS U.K. MARKETING UNITS FOR 50 MLN STG.
    LONDON, March 2 - Ultramar Plc <UMAR.L> said it had reached
agreement in principle to sell its wholly owned U.K. Marketing
companies to Kuwait Petroleum Corp for around 50 mln stg.
    Ultramar's marketing units include <Ultramar Golden Eagle
Ltd> which in 1985 made a profit of around 1.4 mln stg before
financing and group administration charges. A small loss was
recorded for the first nine months of 1986.
    The sale is due to take place on April 1 with the proceeds
intended to reduce group debt in the short term. But Ultramar
said the funds would ultimately be used for further development
of its core businesses in the U.K. And North America.


.I 16260
.C
money-supply
.W
HONG KONG M3 RISES 2.2 PCT IN JANUARY.
    HONG KONG, March 3 - Hong Kong's broadly defined M3 money
supply rose 2.2 pct to 607.17 billion H.K. Dlrs in January,
after a 3.1 pct rise in December, for a year-on-year rise of
23.3 pct, the government said in a statement.
    Local currency M3 rose 3.6 pct to 280.36 billion dlrs from
December when it was up 3.4 pct from November, for a rise of
16.3 pct on the year.
    Total M2 rose 3.3 pct to 535.26 billion dlrs in January
from December when it rose 3.5 pct on the previous month. Local
M2 rose 4.7 pct to 249.03 billion dlrs in January from December
when it climbed 4.2 pct.
    Total M2 and local M2 rose 32.5 pct and 23.9 pct on the
year-ago month, respectively.
    Total M1 rose 12 pct to 62.84 billion dlrs in January after
a 5.0 pct rise the previous month. Local M1 rose 12.3 pct to
57.97 billion dlrs after a 6.2 pct rise. Total M1 and local M1
year-on-year growth was 32.5 and 32.6 pct, respectively.
    Total loans and advances rose 3.3 pct to 517.19 billion
dlrs from December when they rose 1.2 pct.
    Loans for financing Hong Kong's visible trade rose 3.4 pct
to 36.72 billion dlrs after a 1.8 pct rise in December.


.I 16261
.C
acq
.W
WOOLWORTH, UNDERWOODS FAIL TO AGREE ON BID.
    LONDON, MARCH 3 - <Underwoods Plc> said it had not been
possible to agree terms on a bid to be made by Woolworth
Holdings Plc <WLUK.L> during talks.
    The two companies had been holding exploratory discussions.
No spokesman for either company was immediately available to
say why terms could not be agreed, nor whether the possibility
of a bid was now being abandoned.
    Last week, Underwoods shares rose 49p to 237p ahead of any
announcement of the talks. The announcement today brought them
back down to 214p from last night's close at 241p. Woolworth
was unchanged at 758p.


.I 16262
.C
money-fx;interest;
.W
NO BUNDESBANK POLICY CHANGES EXPECTED THURSDAY.
    FRANKFURT, March 3 - The Bundesbank is unlikely to change
its credit policies at its central bank council meeting on
Thursday, as exchange rates and short-term interest rates have
stabilized over the past few weeks, money market dealers said.
    Attention in the money market is focused on tomorrow's
tender for a securities repurchase pact, from which funds will
be credited on Thursday, when an earlier pact expires, draining
16 billion marks from the system.
    The tender was announced last Friday, because carnival
festivities closed banks in Duesseldorf yesterday, and will
close banks here this afternoon.
    Because of the disruption to business from carnival,
minimum reserve figures for the start of the month are
unrealistic, making it difficult for banks to assess their
needs at the tender.
    Dealers said the Bundesbank would want to inject enough
liquidity in this week's pact to keep short-term rates down.
    But because of uncertainty about banks' current holdings,
the Bundesbank may well allocate less than 16 billion marks
this week, and top it up if necessary at next week's tender.
    "I would not be surprised if the Bundesbank cuts the amount
a little, to say 14 or 15 billion marks," one dealer said.
    "They would then stock it up at the next tender when the
need is clearer," he added.
    An earlier pact expires next week, draining 8.5 billion
marks from the system. Banks also face a heavy but temporary
drain this month from a major tax deadline for customers.
    Banks held 52.0 billion marks on February 27 at the
Bundesbank, averaging 51.0 billion over the whole month, just
clear of the 50.5 billion February reserve requirement.
    Call money traded today at 3.85/95 pct, up from 3.80/90
yesterday.


.I 16263
.C
money-fx;interest;
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP.
    LONDON, March 3 - The Bank of England said it revised up
its forecast of the shortage in the money market today to
around 500 mln stg from its initial estimate of 350 mln.


.I 16264
.C
palm-oil;veg-oil;
.W
PAKISTAN TO RETENDER FOR RBD PALM OIL TOMORROW.
    LONDON, March 3 - Pakistan will retender for 6,000 tonnes
of refined bleached deodorised palm oil for second half March
shipment tomorrow, after failing to take up offers today, palm
oil traders said.


.I 16265
.C
crude
.W
MOBIL PLANS TO OPEN OFFICE IN PEKING.
     PEKING, March 3 - Mobil Oil Corp of U.S. Plans to open an
office in Peking to develop oil exploration opportunities in
China, the China Daily said.
     It quoted Mobil president Richard Tucker, currently in
Peking, as saying he is optimistic about investment prospects
in China and that Peking will continue to encourage foreign
private businesses to invest here.
     It said Mobil bought 73 mln dlrs of crude oil and oil
products from China in 1986 and sold it lubricant and
fertiliser, but gave no more details.


.I 16269
.C
earn
.W
******Unilever Plc and Nv combined 1986 pre-tax profit 1.14 billion stg vs 953 mln.
Blah blah blah.

.I 16272
.C
crude
.W
OPEC WITHIN OUTPUT CEILING, SUBROTO SAYS.
    JAKARTA, March 3 - Opec remains within its agreed output
ceiling of 15.8 mln barrels a day, and had expected current
fluctuations in the spot market of one or two dlrs, Indonesian
Energy Minister Subroto said.
    He told reporters after meeting with President Suharto that
present weakness in the spot oil market was the result of
warmer weather in the U.S. And Europe which reduced demand for
oil.
    Prices had also been forced down because refineries were
using up old stock, he said.
    He denied that Opec was exceeding its agreed production
ceiling. Asked what Opec's output level was now, he replied:
"Below 15.8 (mln barrels per day)." He did not elaborate.
    He said there appeared to have been some attempts to
manipulate the market, but if all Opec members stick by the
cartel's December pricing agreement it would get through
present price difficulties.
    He predicted that prices would recover again in the third
and fourth quarters of 1987.
    He also reiterated that there was no need for an emergency
Opec meeting.
    He said Opec had expected to see some fluctuations in the
spot price. "We hope the weak price will be overcome, and
predict the price will be better in the third and fourth
quarters."
    Refiners, he said, appeared to have used up old stock
deliberately to cause slack demand in the market and the price
to fall. But Opec would get through this period if members
stuck together.


.I 16273
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 24 MLN STG ASSISTANCE.
    LONDON, March 3 - The Bank of England said it provided 24
mln stg help to the money market in the morning session.
    This compares with the bank's upward revised shortage
forecast of around 500 mln stg.
    The central bank purchased bank bills outright comprising
two mln stg in band one at 10-7/8 pct and 22 mln stg in band
two at 10-13/16 pct.


.I 16275
.C
jobs
.W
JAPAN'S UNEMPLOYMENT RATE SEEN RISING TO 3.5 PCT.
    By Jeff Stearns, Reuters
    TOKYO, March 3 - Japan's unemployment rate is expected to
continue to climb to about 3.5 pct within the next year from
January's three pct record, senior economists, including Susumu
Taketomi of Industrial Bank of Japan, said.
    December's 2.9 pct was the previous worst level since the
government's Management and Coordination Agency began compiling
statistics under its current system in 1953.
    "There is a general fear that we will become a country with
high unemployment," said Takashi Kiuchi, senior economist for
the Long-Term Credit Bank of Japan Ltd.
    The government, which published the January unemployment
figures today, did not make any predictions.
    "At present we do not have a forecast for the unemployment
rate this year, but it is difficult to foresee the situation
improving," a Labour Ministry official said.
    Finance Minister Kiichi Miyazawa said the government had
expected the increase and had set aside money to help 300,000
people find jobs in fiscal 1987 beginning in April.
    Prime Minister Yasuhiro Nakasone told a press conference
the record rate underlines the need to pass the 1987 budget
which has been held up by opposition to proposed tax reforms.
    The yen's surge has caused layoffs in the mainstay steel
and shipbuilding industries. Other export-dependent industries,
such as cars and textiles, have laid off part-time employees
and ceased hiring, economists said.
    Although the growing service industry sector has absorbed a
great number of workers the trend is starting to slow down,
said Koichi Tsukihara, Deputy General Manager of Sumitomo Bank
Ltd's economics department.
    However, other economists disagreed, saying the service
sector would be able to hire workers no longer needed by the
manufacturing sector over the next five years.


.I 16278
.C
earn
.W
UNILEVER PLC AND NV 1986 4TH QTR TO DEC 31.
    LONDON, March 3
    Unilever Plc share 49.57p vs 44.19p, making 177.55p vs
137.96p for full year.
    Unilever NV share 10.69 guilders vs 11.82 guilders, making
38.22 guilders vs 36.79 guilders.
    Unilever Plc final div 35.18p, making 50.17p vs 38.62p.
    Unilever NV final div 10.67 guilders, making 15.33 guilders
vs 14.82 guilders.
    Combined pre-tax profit 276 mln stg vs same, making 1.14
billion stg vs 953 mln.
    The two companies proposed a five for one share split.
    Combined fourth quarter pre-tax profit 1.10 billion
guilders vs 1.11 billion, making 3.69 billion guilders vs 3.81
billion.
    Operating profit 259 mln stg vs 265 mln, making 1.12
billion stg vs 949 mln.
    Tax 109 mln stg vs 105 mln, making 468 mln vs 394 mln. Tax
adjustments 19 mln stg credit vs nil, making 26 mln stg credit
vs three mln debit.
    Attributable profit 185 mln stg vs 165 mln, making 664 mln
vs 516 mln.
    Full year 1986 turnover 17.14 billion stg vs 16.69 billion.


.I 16280
.C
acq
.W
HK HOTELS SOARS ON TAKEOVER SPECULATION.
    HONG KONG, March 3 - The price of Hongkong and Shanghai
Hotels Ltd <SHLH.HK>'s stock soared on speculation of a
takeover battle between major shareholders the Kadoorie family
and the Evergo Industrial Enterprise Ltd <EVGH.HK> group, stock
brokers said.
    They noted heavy buying in Hk Hotel shares after an
announcement by Evergo's <China Entertainment and Land
Investment Co Ltd> unit that it bought about 20 pct of Hk
Hotels from the firm's deputy chairman David Liang for 1.06
billion dlrs. The stock rose 12 H.K. Dlrs to 62 dlrs today.
    Thomas Lau, Evergo's executive director, declined comment
on whether the group is seeking a further stake in Hk Hotels.
But he told Reuters the group will hold the 20 pct stake bought
from Liang as long term investment.
    He said Evergo "was attracted by the underlying strength of
Hk Hotels."
    Analysts said Evergo may be looking for a possible
redevelopment of the Peninsula Hotel, one of Asia's best known
hotels, and another site on Hong Kong island. Both are owned by
Hk Hotels.
    <Lai Sun Garment Co ltd> yesterday said it acquired a 10
pct stake in Hk Hotels from Liang for 530 mln dlrs.
    Lau denied any link between China Entertainment and Lai Sun
on their acquisitions of the Hk Hotels stake.
    "It is purely coincidence," he said.
    But analysts were not so certain, saying that the Evergo
group, which has a reputation as a corporate raider, may team
up with Lai Sun Garment for a takeover.
    Lau also denied any contact with the Kadoorie family, which
analysts estimate has more than 20 pct of Hk Hotels. Michael
Kadoorie is chairman of Hk Hotels.
    Lau said two representatives of Evergo will be nominated to
the Hk Hotels board.
    A source close to the Kadoorie family said the family has
not considered any countermoves so far.
    Analysts said it would be difficult for Evergo and the
Kadoorie family to cooperate because of different management
styles.
    "Evergo may want to split up the hotel management and
property developments of Hk Hotels but that strategy may not
fit the conservative Kadoorie family," said an analyst who asked
not to be named.
    Another analyst noted the price of Hk Hotels had been
distorted by the takeover talks because its net asset value is
only worth about 50 dlrs a share. The offers by Evergo and Lai
Sun were for 53 dlrs a share, though that is well below the
current trading price.
    Trading was suspended today in shares of Lai Sun, Evergo,
China Entertainment and the group's associate <Chinese Estates
Ltd>.
    Chinese Estates lost 25 cents to 20.15 dlrs yesterday,
China Entertainment five to 8.60 dlrs and Evergo one to 74
cents. Lai Sun gained 50 cents to 70.50 dlrs.


.I 16283
.C
acq
.W
BRYSON PAYS 5.4 MLN DLRS FOR CENERGY CORP STAKE.
    LONDON, March 2 - <Bryson Oil and Gas Plc> said it paid a
cash consideration of around 5.4 mln dlrs for about 8.6 pct of
<Cenergy Corp>, a U.S. Oil and gas exploration and production
company.
    Bryson said its board has been considering a number of
possible investments to expand the company's interests and
believes the opportunity to acquire an investment in Cenergy
provides a suitable extension to its existing U.S. Interests.
    Cenergy reported a net loss of 7.27 mln dlrs in the nine
months to September 30, 1986 while total stockholders equity on
the same date was 40.72 mln dlrs.


.I 16288
.C
earn
.W
ASHTON-TATE <TATE> 4TH QTR NET.
    TORRANCE, Calif., March 3 -
    Shr 43 cts vs 30 cts
    Net 10.6 mln vs 5,967,000
    Revs 62.9 mln vs 41.5 mln
    Avg shrs 200.7 mln vs 20.2 mln
    Year
    Shr 1.26 dlrs vs 85 cts
    Net 30.1 mln vs 16.6 mln
    Revs 210.8 mln vs 121.6 mln
    Avg shrs 23.9 mln vs 19.4 mln
    NOTE: Share adjusted for January 1987 two-for-one split.


.I 16289
.C
ship
.W
NEITHER SIDE OPTIMISTIC ON ROTTERDAM PORT ISSUES.
    ROTTERDAM, March 3 - Employers and the port union, FNV, are
to meet again this afternoon to attempt a settlement of the
six-week-old dispute in Rotterdam's general cargo sector, but
neither side is optimistic, spokesmen for both sides told
Reuters.
    Little progress was made in last night's three hours of
talks, with both sides largely reiterating their positions.
    "There is still a very large gap between the employers and
the FNV, and I can't say that we expect to reach any agreement.
But at least we are still talking," a union spokesman said.
    Employers organization chairman, Jacques Schoufour, accused
the FNV of intransigence in refusing to alter its stance at all
over the past two months.
    "The FNV is not serious about our discussions and I am
really not optimistic about it changing its point of view at
all."
    "If we find this afternoon that the FNV still refuses to
accept the necessary redundancies in the general cargo sector,
then we will break off the talks and the redundancies may begin
later this month," Schoufour said.
    The series of strikes, which employers say has cost them
more than seven mln guilders in lost import business in the
past six weeks, began on January 19 in protest at plans for 800
redundancies from the sector's 4,000 workforce starting with
350 this year.
    Late last month Social Affairs minister Louw de Graaf said
unless the dispute was settled by yesterday he would withdraw
the sector's 10 mln guilder annual labour subsidy.
    Both sides wrote to the minister yesterday setting out
their cases, but Schoufour said he did not expect to hear from
him before Wednesday at the earliest.


.I 16291
.C
earn
.W
UNILEVER IMPROVES IN MOST SECTORS DURING 1986.
    LONDON, March 3 - The Unilever Plc and NV <UN.A> group saw
improved performance in almost all sectors during 1986, the
Anglo-Dutch group said in its results statement.
    Very good progress was made last year, while the recent
acquisition of Chesebrough-Pond's Inc <CBM.N> was a significant
addition which will greatly benefit the group in the years to
come.
    Earlier, Unilever reported combined fourth quarter pre-tax
profit of 276 mln stg, level with the year earlier period,
making 1.14 billion stg compared with 953 mln for the 1986 full
year.
    Unilever said it plans to change its depreciation policy to
the more conventional practice of depreciating assets
individually rather than depreciating fixed assets at average
rates. The new method is expected to lead to a reduction in the
accumulated provision for depreciation and thereby increase the
net book value of tangible asssets by about 300 mln stg as at
January 1, 1987.
    Unilever Plc shares are up 25p since yesterday at 2,575p in
buoyant response to the results and share split proposal,
though 1986 profits were not ahead of market forecasts, dealers
added.


.I 16292
.C
lei
.W
******U.S. LEADING INDICATORS FELL 1.0 PCT IN JAN AFTER REVISED 2.3 PCT DEC RISE.
Blah blah blah.

.I 16294
.C
lei
.W
U.S. LEADING INDEX FELL 1.0 PCT IN JANUARY.
    WASHINGTON, March 3 - The U.S. index of leading indicators
fell a seasonally adjusted 1.0 pct in January after a revised
2.3 pct December gain, the Commerce Department said.
    The department previously said the index rose 2.1 pct in
December.
    The decline in January was the biggest for any month since
July, 1984, when the index fell 1.7 pct.
    The January decrease left the index at 183.8 over its 1967
base of 100, and was led by a fall in contracts and orders for
plant and equipment.
    A total of six of 10 indicators available for January
contributed to the decline.
    Besides contracts and orders for plant and equipment, they
were building permits, manufacturers' new orders for consumer
goods, a change in sensitive materials prices, slower
deliveries from vendors and higher average weekly claims for
state unemployment insurance.
    Four of 10 indicators were positive, including stock
prices, new business formation, average work week and money
supply.
    The main factor for the December upward revision was new
business formation.
    There was no revision in the 0.9 pct increase in the
leading indicators index for November.
    The index of coincident indicators, which measures the
current economy, fell 0.1 pct in January after increases of 0.7
pct in December and 0.2 pct in November.
    The index of lagging indicators, which measures past
economic activity, rose 0.5 pct in January after a decrease of
0.5 pct in December and an increase of 0.2 pct in November.


.I 16296
.C
earn
.W
BURLINGTON COAT FACTORY WAREHOUSE CORP <BCF> NET.
    BURLINGTON, N.J., March 3 - Jan 31 end
    Shr 1.40 dlrs vs 1.10 dlrs
    Net 16.4 mln vs 12.9 mln
    Revs 196.2 mln vs 157.5 mln


.I 16297
.C
coffee
.W
COFFEE PRICE FALL SHORT TERM - DUTCH ROASTERS.
    ROTTERDAM, March 3 - This morning's sharp decline in coffee
prices, following the breakdown late last night of negotiations
in London to reintroduce International Coffee Organization,
ICO, quotas, will be short-lived, Dutch roasters said.
    "The fall is a technical and emotional reaction to the
failure to agree on reintroduction of ICO export quotas, but it
will not be long before reality reasserts itself and prices
rise again," a spokesman for one of the major Dutch roasters
said.
    "The fact is that while there are ample supplies of coffee
available at present, there is a shortage of quality," he said.
    "Average prices fell to around 110 cents a lb following the
news of the breakdown but we expect them to move back again to
around 120 cents within a few weeks," the roaster added.
    Dutch Coffee Roasters' Association secretary Jan de Vries
said although the roasters were disappointed at the failure of
consumer and producer ICO representatives to agree on quota
reintroduction, it was equally important that quotas be
reallocated on a more equitable basis.
    "There is no absolute need for quotas at this moment because
the market is well balanced and we must not lose this
opportunity to renegotiate the coffee agreement," he said.
    "There is still a lot of work to be done on a number of
clauses of the International Coffee Agreement and we would not
welcome quota reintroduction until we have a complete
renegotiation," de Vries added.
    With this in mind, and with Dutch roasters claiming to have
fairly good forward cover, the buying strategy for the
foreseeable future would probably be to buy coffee on a
hand-to-mouth basis and on a sliding scale when market prices
were below 120 cents a lb, roasters said.


.I 16298
.C
acq
.W
GREENWOOD RESOURCES <GRRL> SELLS COMPANY STAKE.
    DENVER, March 3 - Greenwood Resources Inc said it has sold
its 4,300,000 common share majority holding in <New London Oil
Ltd> of London to an affiliate of <Guinness Peat Group PLC> of
London and an affiliate of <Sidro SA> of Belgium for a total of
1,700,0000 dlrs in cash.
    The company said it will apply the proceeds of the sale to
support its line of credit and as part of a proposed debt
restructuring with Colorado National Bancshares <COLC> and
Greenwood shareholders.
    It said it will retain a seat on the New London board.


.I 16301
.C
earn
.W
******F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS.
Blah blah blah.

.I 16302
.C
acq
.W
HEINZ INTERESTED IN BUYING GUINNESS BREWING.
    DUBLIN, March 3 - H.J. Heinz <HNZ.N> chairman Tony O'Reilly
would be interested in buying Guinness PLC <GUIN.L>'s brewery
division if it were for sale, a spokesman said.
    The spokesman, reacting to Irish and British press reports,
said "He continues to be interested were the group to offer the
brewery side of Guinness for sale. But he has not put together
a consortium, nor has he been buying shares."
    He was quoted by the Irish magazine Business and Finance as
saying he would be interested if it came on the market and that
he had the support of two international banks if he decided
such a purchase might be worthwhile.
    In the magazine article, he suggested that if brewing
profits were calculated to be in the region of 80 mln punts,
the asking price would not be higher than 800 mln punts.
    "A multiple of ten times earnings would be the top whack for
the brewing division in the current Guinness situation," he
said.
    "This would mean an expensive exercise, right on the edge,
but not impossible," he added.
    The deal would mean buying the Dublin, London, Nigerian and
Malaysian breweries because "It could only be sold as an
integral unit if it was going to be sold at all," O'Reilly said.


.I 16303
.C
earn
.W
EQUATORIAL COMMUNICATIONS <EQUA> TO HAVE LOSSES.
    MOUNTAIN VIEW, Calif., March 3 - Equatorial Communications
Co said it expects to report losses of about 57 mln dlrs for
the fourth quarter and 68 mln dlrs for the full year 1986 on
revenues of about 10 mln dlrs for the quarter and 52 mln dlrs
for the year.
    Equatorial said the losses will include a charge of about
45 mln dlrs from costs associated with the restructuring of its
business, including adjustments to reflect the market value of
transponders owned and leased by Equatorial and other reserves
for inventory, receivables and excess facilities.
    Equatorial said the fourth quarter operating results will
also include restructuring costs of about 5,500,000 dlrs, in
addition to the 45 mln dlr charge.
    Equitorial also said that as of March One it is operating
in technical default under its lease of transponders on the
Galaxy III satellite due to its inabiliuty to maintain
agreed-upon financial ratios.  It said it is in talks with the
lessors in an attempt to restructure lease obligations.
    Further, Equitorial said it is in default of two other
oblitations in connection with the purchase or lease of
transponders as a result of cross-default provisions.
    Equatorial said it has signed a memorandum of understanding
for Contel Corp <CTC> to purchase 10 mln dlrs of Equatorial
master earth stations, micro earth stations and associated
equipment and loan Equatorial six mln dlrs over a six-month
period for repayment starting in December 1988.
    The company said Conteol, under the agreement, would assume
a portion of Equatorial's rights and obligations under the
Galaxy III transponder lease with <Burnham Leasing> on the
occurrence of certain events.
    Equatorial said it would grant Contel an option to buy
about 3,600,000 common shares at 3.25 dlrs each.
    Equatorial said its understandings with Contel are subject
to Equatorial's ability to restructure a significant portion of
its obligations and to obtain concessions from lenders and
lessors, in particular under its Galaxy III transponder lease.
It said it hopes to finalize a Contel agreement by April 15.
    Equatorial in 1985 earned 1,807,000 dlrs after a 3,197,000
dlr gain from early debt retirement on revenues of 56.1 mln
dlrs. For the first nine months of 1986, the company lost
9,476,000 dlrs on revenues of 45.4 mln dlrs, compared with a
1,784,000 dlr profit after the early retirement gain on
revenues of 38.5 mln dlrs.


.I 16304
.C
earn
.W
TRANSAMERICA <TA> TO HAVE AUSTRALIAN SALE GAIN.
    LOS ANGELES, March 3 - Transamerica Corp said it will have
an after-tax gain of about 10 mln U.S. dlrs on the sale of its
Occidental Life Insurance Co of Australia Ltd affiliate to
<Pratt and Co Financial Services Pty Ltd> of Melbourne for 105
mln Australian dlrs.
    The sale was announced earlier today in Australia. Proceeds
will be used to enhance the growth of North American operations
of its Transamerica Occidental Life subsidiary, the company
said.


.I 16305
.C
acq
.W
******VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID.
Blah blah blah.

.I 16306
.C
earn
.W
F.W. WOOLWORTH CO <Z> 4TH QTR JAN 31 NET.
    NEW YORK, March 3 -
    Shr 1.78 dlrs vs 1.64 dlrs
    Net 117 mln vs 106 mln
    Sales 2.02 billion vs 1.85 billion
    Avg shrs 65.6 mln vs 63.9 mln
    Year
    Shr 3.25 dlrs vs 2.75 dlrs
    Net 214 mln vs 177 mln
    Sales 6.50 billion vs 5.96 billion
    Avg shrs 65.6 mln vs 63.9 mln
    NOTE: Share data restated to reflect two for one stock
split in May 1986


.I 16308
.C
earn;crude;
.W
BP OIL RAISES OPERATING PROFIT.
    LONDON, March 3 - <BP Oil Ltd>, the U.K. Marketing and
refining arm of British Petroleum Co Plc <BP.L>, raised its
pretax operating profit on a replacement cost basis to 182 mln
stg in calendar 1986, compared with 66 mln stg in 1985.
    Sales and operating revenue fell to 3.1 billion stg from
4.2 billion on a replacement cost basis. Historical cost
operating profit was 61 mln stg, up from 16 mln.
    BP Oil said 1985 profits had been depressed by exceptional
items. Its profit figures were stated before interest charges.
    Chief executive David Kendall said improved results
mirrored benefits of a restructuring program undertaken in
recent years.
    However, he warned future financial pressure on the
industry will be severe.
    "The U.K. Oil marketing and refining industry will need to
invest larger sums - probably around 500 mln stg a year - for a
good many years," he said in a statement.


.I 16311
.C
trade
.W
U.S. ASKS JAPAN END AGRICULTURE IMPORT CONTROLS.
    TOKYO, March 3 - The U.S. Wants Japan to eliminate import
controls on agricultural products within three years, visiting
U.S. Under-Secretary of State for Economic Affairs Allen Wallis
told Eishiro Saito, Chairman of the Federation of Economic
Organisations (Keidanren), a spokesman for Keidanren said.
    The spokesman quoted Wallis as saying drastic measures
would be needed to stave off protectionist legislation by
Congress.
    Wallis, who is attending a sub-cabinet-level bilateral
trade meeting, made the remark yesterday in talks with Saito.
    Wallis was quoted as saying the Reagan Administration wants
Japanese cooperation so the White House can ensure any U.S.
Trade bill is a moderate one, rather than containing
retaliatory measures or antagonising any particular country.
    He was also quoted as saying the U.S. Would be pleased were
Japan to halve restrictions on agricultural imports within five
years if the country cannot cope with abolition within three,
the spokesman said.
    Japan currently restricts imports of 22 agricultural
products. A ban on rice imports triggered recent U.S.
Complaints about Japan's agricultural policy.


.I 16315
.C
earn
.W
FIRSTCORP <FCR> SEES GAIN ON CONDEMNATION.
    RALEIGH, N.C., March 3 - Firstcorp Inc said it weill report
an after-tax gain of 1,827,000 dlrs or 56 cts per share primary
and 42 cts fully diluted from the proposed condemnation and
acquisition of a parking deck it operates by Wake County.
    The company said if it reinvested proceeds in a similar
property within 24 months, the gain on the sale would be
deferred for tax purposes.


.I 16318
.C
earn
.W
<NATIONAL SEA PRODUCTS LTD> 4TH QTR NET.
    HALIFAX, Nova Scotia, March 3 -
    Oper shr 43 cts vs 21 cts
    Oper net 6,846,000 vs 3,386,000
    Revs 137.1 mln vs 107.6 mln
    Year
    Oper shr 1.36 dlrs vs 42 cts
    Oper net 21,764,000 vs 7,239,000
    Revs 516.4 mln vs 454.7 mln
    Note: 1986 qtr excludes extraordinary gain of 784,000 dlrs
or five cts share, versus extraordinary loss of 110,000 dlrs or
shr nil in 1985 qtr
    Note continued: 1986 year excludes extraordinary gain of
14,360,000 dlrs or 94 cts share, versus extraordinary gain of
2,883,000 dlrs or 19 cts share in prior year


.I 16319
.C
money-fx;interest;
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED DOWN.
    LONDON, March 3 - The Bank of England said it had revised
its forecast of the shortage in the money market down to 450
mln stg before taking account of its morning operations. At
noon the bank had estimated the shortfall at 500 mln stg.


.I 16320
.C
acq
.W
NATIONAL AMUSEMENTS AGAIN UPS VIACOM <VIA> BID.
    NEW YORK, March 3 - Viacom International Inc said <National
Amusements Inc> has again raised the value of its offer for
Viacom's publicly held stock.
    The company said the special committee of its board plans
to meet later today to consider this offer and the one
submitted March one by <MCV Holdings Inc>.
    A spokeswoman was unable to say if the committee met as
planned yesterday.
    Viacom said National Amusements' Arsenal Holdings Inc
subsidiary has raised the amount of cash it is offering for
each Viacom share by 75 cts to 42.75 dlrs while the value of
the fraction of a share of exchangeable Arsenal Holdings
preferred to be included was raised 25 cts to 7.75 dlrs.
    National Amusements already owns 19.6 pct of Viacom's stock.


.I 16323
.C
earn
.W
NATIONAL FSI INC <NFSI> 4TH QTR LOSS.
    DALLAS, March 3 -
    Shr loss six cts vs profit 19 cts
    Net loss 166,000 vs profit 580,000
    Revs 3,772,000 vs 5,545,000
    Year
    Shr loss 13 cts vs profit 52 cts
    Net loss 391,000 vs profit 1,425,000
    Revs 15.4 mln vs 16.6 mln
    NOTE: 1985 year figures pro forma for purchase accounting
adjustments resulting from March 1985 reeacquisition of company
by its original shareholders before August 1985 initial public
offering. 


.I 16327
.C
earn
.W
<PRECAMBRIAN SHIELD RESOURCES LTD> YEAR LOSS.
    CALGARY, Alberta, March 3 -
    Shr loss 1.93 dlrs vs profit 16 cts
    Net loss 53,412,000 vs profit 4,479,000
    Revs 24.8 mln vs 32.7 mln
    Note: 1986 shr and net include 51,187,000 dlr writedown on
U.S. operations, uneconomic coal operations and other mineral
properties


.I 16328
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 437 MLN STG HELP.
 LONDON, March 3 - The Bank of England said it had provided the
money market with a further 437 mln stg assistance in the
afternoon session. This brings the Bank's total help so far
today to 461 mln stg and compares with its revised shortage
forecast of 450 mln stg.
    The central bank made purchases of bank bills outright
comprising 120 mln stg in band one at 10-7/8 pct and 315 mln
stg in band two at 10-13/16 pct.
    In addition, it also bought two mln stg of treasury bills
in band two at 10-13/16 pct.


.I 16329
.C
earn
.W
GREASE MONKEY HOLDING CORP <GMHC> YEAR NOV 30.
    DENVER, March 3 -
    Shr nil vs nil
    Net 130,998 vs 30,732
    Revs 1,568,941 vs 1,0053,234


.I 16330
.C
earn
.W
ACCEPTANCE INSURANCE HOLDINGS INC <ACPT> YEAR.
    OMAHA, March 3 -
    Oper shr profit 1.80 dlrs vs loss 2.28 dlrs
    Oper net profit 2,048,0000 vs loss 1,318,000
    Revs 25.4 mln vs 12.3 mln
    Avg shrs 1,135,000 vs 576,000
    NOTE: Net excludes realized investment gains of 40,000 dlrs
vs 13,000 dlrs.
    1986 net excludes 729,000 dlr tax credit.


.I 16331
.C
earn
.W
MINSTAR INC <MNST> 4TH QTR NET.
    MINNEAPOLIS, MINN., March 3 -
    Oper shr loss 31 cts vs loss 30 cts
    Oper net loss 5,429,000 vs loss 5,216,000
    Revs 257.5 mln vs 243.6 mln
    Avg shrs 17.5 mln vs 13.5 mln
    Year
    Oper shr loss eight cts vs profit 28 cts
    Oper net loss 1,324,000 vs profit 4,067,000
    Revs 989.5 mln vs 747.9 mln
    Avg shrs 17.6 mln vs 15.7 mln
   
    NOTE: 1986 operating net loss excludes income from
discontinued operations equal to 11 cts in the quarter and 66
cts in the year compared with 1.07 dlrs in the quarter and 1.23
dlrs in the respective periods of 1985.
    1986 operating net loss also excludes extraordinary charges
of 14 cts in the quarter and 54 cts in the year.
    1985 operating net profit excludes an extraordinary gain of
47 cts.


.I 16333
.C
earn
.W
<MARK RESOURCES INC> YEAR LOSS.
    CALGARY, Alberta, March 3 -
    Shr not given
    Loss 54.9 mln
    Revs 27.2 mln
    Note: Prior year results not given. 1986 results include
accounts of 89 pct owned <Precambrian Shield Resources Ltd>,
acquired November 5, 1986


.I 16335
.C
earn
.W
TRANSFORM LOGIC <TOOG> REVISES RESULTS DOWNWARD.
    SCOTTSDALE, Ariz., March 3 - Transform Logic Corp said it
has revised downward its previously reported fourth quarter and
year, ended October 31, results to reflect compensation expense
for employee stock options.
    The company said resolution of this disagreement with its
auditors came as a result of Securities and Exchange Commission
involvement. The company will amend its option-granting
procedure to conform to the SEC decision which will eliminate
future charges, it added.
    Transform said its fourth quarter profit was revised to
305,082 dlrs, or two cts a share, from the previously reported
580,955 dlrs, which left the company with a fiscal 1986 loss of
249,814 dlrs, or two cts a share, instead of the reported
26,195 dlrs profit.


.I 16336
.C
earn
.W
AMERICAN STORES <ASC> SEES LOWER YEAR NET.
    SALT LAKE CITY, March 3 - American Stores Co said it
expects to report earnings per share of 3.70 to 3.85 dlrs per
share on sales of slightly over 14 billion dlrs for the year
ended January 31.
    The supermarket chain earned 4.11 dlrs per share on sales
of 13.89 billion dlrs last year.
    The company did not elaborate.


.I 16337
.C
earn
.W
KASLER CORP <KASL> 1ST QTR JAN 31 NET.
    SAN BERNARDINO, Calif., March 3 -
    Shr profit three cts vs loss seven cts
    Net profit 161,000 vs loss 367,000
    Revs 24.3 mln vs 26.5 mln


.I 16339
.C
earn
.W
UNILEVER HAS IMPROVED MARGINS, VOLUMES IN 1986.
    LONDON, MARCH 3 - Unilever Plc <UN.A> and NV group reported
improvements in margins and underlying sales volume growth of
five pct in 1986 after stripping out the effects of falling
prices, disposals and currency movements, Unilever Plc chairman
Michael Angus said.
    He told reporters that volumes in North America increased
some 10.5 pct while European consumer goods rose about 2.5 pct
after being flat for some years.
    Much of the disposal strategy, aimed at concentrating
activities on core businesses, had now been completed, he
noted.
    But the process of acquisitions would go on, with strategic
acquisitions taking place "from time to time," he said.
    The company earlier reported a 20 pct rise in pre-tax
profits for 1986 to 1.14 billion stg from 953 mln previously.
In guilder terms, however, profits at the pre-tax level dropped
three pct to 3.69 billion from 3.81 billion.
    Angus said the recent purchase of Chesebrough-Pond's Inc
<CBM.N> for 72.50 dlrs a share was unlikely to bring any
earnings dilution.
    However, it would not add much to profits, with much of the
company's operating profits paying for the acquisition costs.
    Finance director Niall Fitzgerald added that while gearing
- debt to equity plus debt - rose to about 60 pct at end 1986
from 35 pct last year, this was expected to drop back to about
40 pct by end-1987.
    The same divergence was made in full year dividend, with
Unilever NV's rising 3.4 pct to 15.33 guilders and Unilever
Plc's increasing 29.9 pct to 50.17p, approximately in line with
the change in attributable profit.
    Angus said the prospectus for the sale of parts of
Chesebrough was due to be published shortly. However, he said
that there was no target date for completing the process.
    He also declined to say what sort of sum Unilever hoped to
realise from the operation, beyond noting that Chesebrough had
paid around 1.25 billion dlrs for Stauffer Chemical Co, which
operates outside Unilever's core activities.
    In the U.S., Organic growth from the Lipton Foods business,
considerable expansion in the household products business and
in margarine had been behind the overall sales increase.
    However, he noted that the U.S. Household products business
had turned in a planned loss, with fourth quarter performance
better than expected despite the anticipated heavy launch costs
of its Surf detergents.


.I 16340
.C
acq
.W
SARA LEE <SLE> TO BUY 34 PCT OF DIM.
    CHICAGO, March 3 - Sara Lee Corp said it agreed to buy a 34
pct interest in Paris-based DIM S.A., a subsidiary of BIC S.A.,
at a cost of about 84 mln dlrs.
    DIM S.A., a hosiery manufacturer, had 1985 sales of about
260 mln dlrs.
    The investment includes the purchase of 360,537 newly
issued DIM shares valued at about 51 mln dlrs and a loan of
about 33 mln dlrs, it said. The loan is convertible into an
additional 229,463 DIM shares, it noted.
    The proposed agreement is subject to approval by the French
government, it said.


.I 16342
.C
trade
.W
CHINA CALLS FOR BETTER TRADE DEAL WITH U.S.
    PEKING, March 3 - China called on the United States to
remove curbs on its exports, to give it favourable trading
status and ease restrictions on exports of high technology.
    But the U.S. Embassy replied that Chinese figures showing
13 years of trade deficits with the U.S. Out of the last 15 are
inaccurate and said Peking itself would have to persuade
Congress to change laws which limit its exports.
    The official International Business newspaper today
published China's demands in a  editorial to coincide with the
visit of U.S. Secretary of State George Shultz.
    "It is extremely important that the U.S. Market reduce its
restrictions on Chinese imports, provide the needed facilities
for them and businessmen from both sides help to expand Chinese
exports," the editorial said.
    "The U.S. Should quickly discard its prejudice against
favourable tariff treatment for Chinese goods and admit China
into the Generalised System of Preference (GSP).
    "Despite easing of curbs on U.S. Technology exports in
recent years, control of them is still extremely strict and
influences normal trade between the two countries," it added.
    The paper also printed an article by China's commercial
counsellor in its Washington embassy, Chen Shibiao, who said
that "all kinds of difficulties and restrictions" were preventing
bilateral trade fulfilling its full potential.
    He named them as U.S. Protectionist behaviour, curbs on
technology transfer and out-of-date trade legislation.


.I 16343
.C
lei
.W
U.S. COMMERCE SECRETARY SAYS EXPORT RISE NEEDED.
    WASHINGTON, March 3 - Commerce Secretary Malcolm Baldrige
said after the release of a sharply lower January leading
indicator index that a pickup in exports is needed.
    "The best tonic for the economy now would be a pickup in net
exports," he said in a statement after the department reported
the index fell 1.0 pct in January from December, the sharpest
drop since a 1.7 pct fall in July, 1984.
    The main reasons for the January decline after a 2.3 pct
December rise were declines in building permits, new orders for
plant and equipment and for consumer and industrial goods.


.I 16344
.C
earn
.W
PRECAMBRIAN SHIELD TAKES 51 MLN DLR WRITEDOWN.
    CALGARY, Alberta, March 3 - <Precambrian Shield Resources
Ltd>, earlier reporting a large loss against year-ago profit,
said the 1986 loss was mainly due to a 51,187,000 dlr writedown
on its U.S. operations, uneconomic coal and other mineral
properties.
    Precambrian, which is 89 pct owned by <Mark Resources Inc>,
said it took the writedown in accordance with new Canadian
Insititute of Chartered Accountants guidelines for full cost
method accounting by oil and gas companies.
    Precambrian earlier reported a 1986 loss of 53.4 mln dlrs,
compared to profit of 4.5 mln dlrs in the prior year.


.I 16346
.C
coffee
.W
KENYAN ECONOMY FACES PROBLEMS, PRESIDENT SAYS.
    NAIROBI, March 3 - The Kenyan economy is heading for
difficult times after a boom last year, and the country must
tighten its belt to prevent the balance of payments swinging
too far into deficit, President Daniel Arap Moi said.
    In a speech at the state opening of parliament, Moi said
high coffee prices and cheap oil in 1986 led to economic growth
of five pct, compared with 4.1 pct in 1985.
    The same factors produced a two billion shilling balance of
payments surplus and inflation fell to 5.6 pct from 10.7 pct in
1985, he added.
    "But both these factors are no longer in our favour ... As a
result, we cannot expect an increase in foreign exchange
reserves during the year," he said.
    The price of coffee, Kenya's main source of foreign
exchange, fell in London today to about 94 cents a pound from a
peak of 2.14 dlrs in January 1986.
    Crude oil, which early last year slipped below 10 dlrs a
barrel, has since crept back to over 18 dlrs.
    Moi said the price changes, coupled with a general decline
in the flow of capital from the rest of the world, made it more
difficult to finance the government's budget deficit.
    Kenya was already spending over 27 pct of its budget on
servicing its debts and last year it was a net exporter of
capital for the first time in its history, he added.
    "This is a clear indication that we are entering a difficult
phase as regards our external debts, and it is imperative that
we raise the rate of domestic savings and rely less on foreign
sources to finance our development," he said.
    "It will be necessary to maintain strict discipline on
expenditure ... And members of this house will have to take the
lead in encouraging wananchi (ordinary people) to be more
frugal in satisfying immediate needs," the president added.


.I 16349
.C
acq
.W
SCOTT'S HOSPITALITY ACQUIRES CAPITAL FOOD.
    TORONTO, March 3 - <Scott's Hospitality Inc> said it
acquired all issued shares of Capital Food Services Ltd, of
Ottawa. Terms were not disclosed.
    Scott's said Capital Food had 1986 sales of more than 20
mln dlrs and will continue to operate under its present name
with existing management.
    Capital Food provides food services to several Ottawa
institutions, the company said.


.I 16350
.C
coffee
.W
ZIMBABWE COFFEE OUTPUT SET TO RISE.
    HARARE, March 3 - Zimbabwean coffee output will reach
13,000 tonnes this year, up on just over 11,000 tonnes produced
in 1986, the Commercial Coffee Growers Association said.
    Administrative Executive Robin Taylor told the domestic
news agency ZIANA that Zimbabwe earned the equivalent of 33 mln
U.S. Dlrs from coffee exports last year. He would not say how
much the country would earn in 1987.
    Taylor said the 173 commercial coffee growers under his
association had increased production from 5,632 tonnes in 1980
to more than 11,000 tonnes in l986.


.I 16352
.C
acq
.W
VIDEO DISPLAY <VIDE> TO SELL CABLE TV UNIT.
    ATLANTA, March 3 - Video Display Corfp said it has reached
a tentiative agreement to sell its existing cable television
business for undisclosed terms and expects to report a gain on
the transaction.  The buyer was not named.
    The company said it will redeploy its service assets into
manufacturing and distribution.
    It said the operations being sold accounted for about five
pct of revenues for the year ended February 28 and lost money.


.I 16353
.C
earn
.W
INTEK DIVERSIFIED CORP <IDCC> 4TH QTR NET.
    LOS ANGELES, March 3 -
    Shr three cts vs three cts
    Net 98,20000 vs 91,898
    Revs 2,843,520 vs 2,372,457
    Year
    Shr 13 cts vs 21 cts
    Net 401,179 vs 681,374
    Revs 10.5 mln vs 9,699,535


.I 16355
.C
housing
.W
******U.S. SINGLE-FAMILY HOME SALES FELL 6.8 PCT IN JAN AFTER REVISED 12.1 PCT DEC GAIN.
Blah blah blah.

.I 16356
.C
housing
.W
U.S. HOME SALES FELL 6.8 PCT IN JANUARY.
    WASHINGTON, March 3 - Sales of new single-family homes in
the United States fell 6.8 pct in January from December to a
seasonally adjusted annual rate of 716,000 units, the Commerce
Department said.
    The department revised downward December's sales to a 12.1
pct rise to 768,000 units from the previously reported 12.7 pct
increase.
    The January decline in sales was the largest since last
October when sales fell 9.3 pct.
    Before seasonal adjustment, the number of homes actually
sold in January was 53,000, up from 49,000 in December but down
from 59,000 in January, 1986.
    The January fall brought home sales to a level 1.6 pct
below January, 1986, when they were a seasonally adjusted
728,000 units.
    The average price was a record 127,100 dlrs, surpassing the
previous record 119,100 price set in December.
    The median price of a home in January reached 100,700 dlrs
-- the first time the price has exceeded 100,000 dlrs. That
compared with a median price of 94,600 dlrs in December and
94,000 dlrs in January a year ago.
    New homes available on the market in January totaled a
seasonally adjusted 362,000 units, unchanged from December and
equal to a 6.3 months' supply.
    The supply in December was 5.9 months.


.I 16359
.C
acq
.W
COMMUNITY BANK <CBSI> TO MAKE ACQUISITION.
    SYRACUSE, N.Y., March 3 - Community Bank System Inc said it
has entered into a definitive agreement to acquire Nichols
Community Bank for 2,800,000 dlrs in common stock.
    It said subject to approval by Nichols shareholders and
regulatory authorities, the transaction is expected to be
completed later this year.


.I 16360
.C
jobs
.W
BELGIAN UNEMPLOYMENT FALLS IN FEBRUARY.
    BRUSSELS, March 3 - Belgian unemployment, based on the
number of jobless drawing unemployment benefit, fell to 12.1
pct of the working population at the end of February from 12.6
pct at the end of January, the National Statistics Office said.
    The rate compares with 12.4 pct at the end of February
1986.
    The total number of jobless stood at 508,392, compared with
530,587 at the end of January and 521,219 at the end of
February 1986, the Statistics Office said.


.I 16365
.C
earn
.W
PHARMACIA AB <PHAB ST>  1986 YEAR.
     STOCKHOLM, March 3 - Sales 3.65 billion crowns vs 3.40
billion.
     Profit  after financial items 821.2 mln crowns vs 740.2
mln.
    The 1986 results include a once-off writedown of 520 mln
crowns for intangible assets, mainly the know-how paid for in
the takeover of a number of high-tech companies by the group,
Pharmacia said.
    Earnings per share after real tax including the writedown:
1.94 crowns vs 12.05 crowns.
    Earnings per share after real tax (not including the
writedown): 12.38 crowns vs 12.05
    Earnings per American Depository Receipt (ADR) according to
U.S. Accounting principles after real tax including the
writedown): 1.96 crowns vs 9.49 crowns.
    Earnings per ADR according to U.S. Accounting principles
after real tax (without the writedown): 9.8 crowns vs 9.49.
    One ADR represents 0.75 pct of one B Free share in
Pharmacia.
    The board proposed a dividend of 1.55 crowns vs 1.25.


.I 16367
.C
earn
.W
PHARMACIA FORECASTS HIGHER 1987 EARNINGS.
    STOCKHOLM, March 3 - Pharmacia AB <PHAB ST> forecast
earnings after financial items of one billion crowns in 1987 vs
821.2 mln last year on condition that exchange rates remained
at their present parities.
    Sales would in such circumstances go up to six billion
crowns from 3.65 billion in 1986, it said.
    A weakening Dollar was mainly responsible for a five pct
negative impact on sales during 1986 which the company blamed
on currency movements.
    Last year's results were also badly hit by a once-off
writedown of 520 mln crowns for intangible assets.
    The company said mainly this represented the premium the
group had paid for the know-how of various high-tech firms it
had taken over.
    The accounts also showed a financial deficit of 1.87
billion crowns vs a deficit of 133 mln which was covered partly
by drawing down company liquidity to 738 mln vs one billion and
partly by increasing borrowing to 2.23 billion vs 621 mln.
    Pharmacia said the financial deficit was caused by it
having used more funds than generated by group operations,
mainly because of the 1.36 billion it paid in cash for shares
in LKB-Produkter AB and the assets of Intermedics-Intraocular
Inc.


.I 16369
.C
gnp
.W
******CANADA REAL 4TH QTR GDP ROSE 1.1 PCT, AFTER 3RD QTR 1.1 PCT RISE - OFFICIAL.
Blah blah blah.

.I 16370
.C
bop
.W
******CANADA 4TH QTR CURRENT ACCOUNT DEFICIT 2.3 BILLION DLRS VS 3RD QTR 1.9 BILLION DEFICIT - OFFICIAL.
Blah blah blah.

.I 16372
.C
ship
.W
MCLEAN INDUSTRIES <MII> UNIT TRANSERS SERVICE.
    CRANFORD, N.J., March 3 - McLean Industries Inc said its
shipping subsidiary, United States Lines Inc, reached an
agreement in principle to transfer its South American service
to American Transport Lines Inc, a subsidiary of <Crowley
Maritime Corp>.
    Under the terms of the agreement, United States Lines will
lease five vessels to American Transport for 15 months with an
option to extend the period up to 10 years, the company said.
    In return, U.S. Lines will receive a fixed payment and a
percentage of revenues for at least three years and possibly as
long as American Transport utilizes its vessels and conducts
trade in South America, the company said.
    The companies will consummate the transactions as soon as
the required approvals are obtained, McLean said.


.I 16377
.C
wheat;grain;
.W
SMALL QUANTITY OF UK WHEAT SOLD TO HOME MARKET.
    LONDON, March 3 - A total of 2,435 tonnes of British
intervention feed wheat were sold at today's tender for the
home market out of requests for 3,435 tonnes, the Home Grown
Cereals Authority, HGCA, said.
    Price details were not reported.
    No bids were submitted for intervention barley.


.I 16378
.C
gnp
.W
******CANADA DECEMBER GDP UP 1.2 PCT AFTER NOVEMBER'S 0.2 PCT FALL - OFFICIAL.
Blah blah blah.

.I 16379
.C
earn
.W
FIRST FEDERAL SAVINGS <FFKZ> YEAR NET.
    KALAMAZOO, MICH., March 3 -
    Shr 78 cts vs one dlr
    Net 1,413,000 vs 1,776,000
    Assets 705.3 mln vs 597.3 mln
    Deposits 495.6 mln vs 493.9 mln
    Loans 260.0 mln vs 379.7 mln
    Qtly div six cts vs six cts prior qtr
    Pay April 1 
    Record March 6
    NOTE: 1986 net includes charges from accounting changes,
from one-time expenses associated with a proxy contest and an
increase in loan reserves.
    First Federal Savings and Loan Association of Kalamazoo is
full name of company.


.I 16383
.C
earn
.W
TOLL BROTHERS INC <TOL> 1ST QTR JAN 31 NET.
    HORSHAM, Penn., March 3 -
    Shr 22 cts vs 12 cts
    Net 3,243,000 vs 1,656,000
    Revs 28.4 mln vs 21.5 mln
    NOTE: All amts reflect 3-for-2 stock split of company's
common in form of 50 pct stock dividend paid Feb 26, 1987.


.I 16385
.C
earn
.W
PILLSBURY CO <PSY> VOTES QUARTERLY DIVIDEND.
    MINNEAPOLIS, MINN., March 3 - 
    Qtly div 25 cts vs 25 cts prior qtr
    Pay 31 May
    Record 1 May


.I 16386
.C
earn
.W
BERKSHIRE GAS CO <BGAS> PAYS REGULAR QTLRY DIV.
    PITTSFIELD, Mass., March 3 -
    Qtrly div 28.5 cts vs 28.5 cts
    Pay April 15
    Record March 31


.I 16387
.C
wheat;grain;barley;
.W
U.K. WHEAT AND BARLEY EXPORTS ADJUSTED UPWARDS.
    LONDON, March 3 - The U.K. Exported 535,460 tonnes of wheat
and 336,750 tonnes of barley in January, the Home Grown Cereals
Authority (HGCA) said, quoting adjusted Customs and Excise
figures.
    Based on the previous January figures issued on February 9,
wheat exports increased by nearly 64,000 tonnes and barley by
about 7,000 tonnes.
    The new figures bring cumulative wheat exports for the
period July 1/February 13 to 2.99 mln tonnes, and barley to
2.96 mln compared with 1.25 and 1.89 mln tonnes respectively a
year ago.
    January wheat exports comprised 251,000 tonnes to European
Community destinations and 284,000 tonnes to third countries.
    The Soviet Union was prominent in third country
destinations, taking 167,700 tonnes while Poland was credited
with 54,500 and South Korea 50,000 tonnes. Italy was the
largest EC recipient with 75,000 tonnes followed by West
Germany with 55,200 and France 52,000 tonnes.
    Barley exports for January comprised 103,700 tonnes to the
EC and 233,000 to third countries. The Soviet Union was the
largest single importer with 133,265 tonnes followed by Saudi
Arabia with 53,800 tonnes.


.I 16388
.C
gnp
.W
CANADA GDP RISES 3.1 PCT IN 1986.
    OTTAWA, March 3 - Canada's real gross domestic product,
seasonally adjusted, rose 1.1 pct in the fourth quarter of
1986, the same as the growth as in the previous quarter,
Statistics Canada said.
    That left growth for the full year at 3.1 pct, which is
down from 1985's four pct increase.
    The rise was also slightly below the 3.3 pct growth rate
Finance Minister Michael Wilson predicted for 1986 in
February's budget. He also forecast GDP would rise 2.8 pct in
1987.
    Statistics Canada said final domestic demand rose 0.6 pct
in the final three months of the year after a 1.0 pct gain in
the third quarter.
    Business investment in plant and equipment rose 0.8 pct in
the fourth quarter, partly reversing the cumulative drop of 5.8
pct in the two previous quarters.


.I 16389
.C
wheat;grain;
.W
EAST EUROPE WHEAT WINTERKILL POSSIBLE, ACCU SAYS.
    STATE COLLEGE, Pa., March 3 - Winter wheat crops in the
western Soviet Union, Poland and eastern Czechoslovakia through
northern Romania may suffer some winterkill over the next two
nights, private forecaster Accu-Weather Inc said.
    Western USSR winter wheat areas have had only light and
spotty snow and winterkill is possible tonight and tomorrow
night as temperatures drop to minus 10 to 0 degrees F.
    Snow cover is scant in Poland, with only about 50 pct of
the winter wheat areas reporting one to two inches of snow as
of this morning.
    The remaining 50 pct of winter wheat crops do not have snow
cover, making winterkill possible on each of the next two
nights. Lowest temperatures will be minus 10 to 0 degrees F.
    Winter wheat areas from eastern Czechoslovakia through
northern Romania had light snow flurries yesterday and last
night, but amounts were an inch or less. With temperatures
expected to fall to near 0 degrees F over the next two nights,
some light winterkill is possible, Accu-Weather added.


.I 16390
.C
earn
.W
CHARMING SHOPPES INC <CHRS> 4TH QTR JAN 31 NET.
    BENSALEM, Penn., March 3 -
    Shr 28 cts vs 22 cts
    Net 14 mln vs 10.6 mln
    Revs 163.8 mln vs 127.3 mln
    Year
    Shr 81 cts vs 59 cts
    Net 40.5 mln vs 28.7 mln
    Revs 521.2 mln vs 391.6 mln


.I 16391
.C
earn
.W
PANSOPHIC SYSTEMS <PNS> SPLITS STOCK 2-FOR-1.
    OAK BROOK, Ill., March 3 - Pansophic Systems Inc said it
will split its stock two-for-one effective April two to
shareholders of record March 13.
    It also said it will pay a six cts per share dividend on
the pre-split shares, a regular quarterly dividend, on April
two to shareholders of record March 13.


.I 16392
.C
gold
.W
LAC <LAC> INTERSECTS MORE GOLD AT DOYON MINE.
    TORONTO, March 3 - Lac Minerals Ltd and <Cambior Inc> said
they completed a second hole at their jointly owned Doyon mine
in Quebec, which showed two significant gold intersections.
    One intersection graded 0.33 ounce gold a short ton over 44
feet at depth of 1,411 feet, while the other graded 0.22 ounce
gold a ton over 23 feet at 2,064 feet, the companies said. The
hole is 460 feet east of the previously reported first hole.
    They said they were now drilling another hole 460 feet to
the west of the first drill hole and expected to report results
in late March or early April.


.I 16394
.C
acq
.W
CALMAR <CLMI> SEEKS TO BE ACQUIRED BY <KEBO AB>.
    WATCHUNG, N.J., March 3 - Calmar Inc said KEBOO Ab of
Sweden, which now owns about 64 pct of Calmark, has approved
the acquisition of remaining Calmar shares at 25.375 dlrs in
cash at the request of the Calmar board.
    Calmar said a special meeting of its board will be held
March Nine to form a special committee of directors not
affiliated with KEBO to evaluate the transaction.
    KEBO is in turn 60 pct owned by <Investment AB Beijar> of
Sweden.


.I 16396
.C
acq
.W
ITALY'S BNL NEGOTIATING PURCHASE OF GERMAN BANK.
    ROME, March 3 - Italy's state-owned <Banca Nazionale Del
Lavoro-BNL> said it is negotiating to buy a West German bank as
part of its foreign expansion policy.
    BNL president Nerio Nesi told a news conference the Italian
bank was currently involved in talks but declined to name the
German institution.
    He said the takeover move could be seen as BNL's reply to
Deutsche Bank AG <DBKG.F>, which entered the Italian market in
December 1986, with the purchase of BankAmerica <BACN>
subsidiary <Banca D'America e D'Italia>.
    Nesi said BNL had also approved a 200 mln dlr credit line
to the Soviet Union aimed at enabling Soviet companies to pay
for Italian imports. He gave no further details.
    BNL officials said the group had also decided to increase
its activities in the Soviet Union by opening a representative
office in Moscow this month through its subsidiary <Sogecred>,
which specialises in Italian-Soviet trade.


.I 16397
.C
zinc
.W
THREE KILLED IN SOUTH AFRICA ZINC REFINERY CLASH.
    JOHANNESBURG, March 3 - Three black workers were killed and
seven injured in fighting at a South African zinc refinery last
night, Gold Fields of South Africa Ltd said.
    The company said two groups of workers began attacking each
other at about 1000 local time with machetes, knives and sticks
at a hostel at the Zincor plant, some 40 kms east of
Johannesburg.
    It said the fighting was "quelled" after 25 minutes by its
own security staff. Police were called but the fighting had
ended by the time they arrived.
    A company spokesman said he had no idea of the cause of the
fighting. An investigation was underway, he said.


.I 16398
.C
interest
.W
FED EXPECTED TO ADD TEMPORARY RESERVES.
    NEW YORK, March 3 - 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 1.5 to two billion dlrs of customer repurchase
agreements. The Fed may add the reserves directly instead via
System repurchases.
    Federal funds, which averaged 6.18 pct yesterday, opened at
6-3/16 pct and stayed there in early trading. Analysts said the
rate is under upward pressure partly from settlement of 8.25
billion dlrs of five-year Treasury notes.


.I 16399
.C
ipi
.W
EC INDUSTRY OUTPUT GROWTH SLOWS IN 1986.
    LUXEMBOURG, March 3 - European Community industrial output
increased by an average of around two pct last year, compared
with 3.3 pct growth recorded in 1985 against a year earlier,
the EC statistics office Eurostat said.
    Growth was highest in Portugal at five pct, while in Greece
output contracted by 0.3 pct, Eurostat said in a statement.
    Eurostat noted output growth also fell in the U.S. And
Japan. U.S. Production increased 1.1 pct after 2.0 pct in 1985,
while in Japan output contracted by 0.5 pct after rising 4.5
pct a year earlier.
    Eurostat said EC industrial production in December rose 3.1
pct compared with 12 months earlier but added that after
adjustment for seasonal factors, output growth had been clearly
slowing down since the beginning of the summe


.I 16400
.C
earn
.W
LSB INDUSTRIES INC <LSB> 4TH QTR NET.
    Oklahoma City, March 3 -
    Shr profit five cts vs loss 2.11 dlrs
    Net profit 375,061 vs loss 10.4 mln
    Revs 39.9 mln vs 37.8 mln
    Avg shrs 6,536,008 vs 4,939,895
    12 mths
    Shr profit 47 cts vs loss 3.37 dlrs
    Net profit 2,837,288 vs loss 16.6 mln
    Revs 169.1 mln vs 149.4 mln
    Avg shrs 6,037,640 vs 4,937,378
    NOTE: primary earnings per share are based on the weighted
average number of common and dilutive common equivalent shares
outstanding during each period after accounting for preferred
stock dividends.
    The qtr and year 1985 includes a 6,000,000 provision for
restructuring costs related to the sale of its Energy business
and parts of its Bearing business.
    The qtr and year 1986 includes charges of 1,200,000 and
5,200,000, respectively, for restructuring costs and operating
losses which were charged against the previously provided
accruals for restructuring costs.
    The qtr and year 1986 includes deferred income taxes of
244,000 and 785,000, respectively.
    Year net 1986 includes operations of Friedrich Climate
Master Inc, which the company acquired in August 1985, for the
full period, while the comparable period for 1985 includes only
operations from August 16, 1985, to Dec 31, 1985.
    Third qtr 1986 Includes extraodinary tax gain of 270,000 
from early extinquishment of certain drafts payable.


.I 16402
.C
gold
.W
MORE GOLD DETECTED AT DOYON MINE.
    TORONTO, March 3 - Lac Minerals Ltd and Cambior Inc said
they completed a second hole at their jointly owned Doyon mine
in Quebec, which showed two significant gold intersections.
    One intersection graded 0.33 ounce gold per short ton over
44 feet at depth of 1,411 feet, while the other graded 0.22
ounce gold per ton over 23 feet at 2,064 feet, the companies
said. The hole is 460 feet east of the previously reported
first hole.
    Another hole is being drilled 460 feet to the west of the
first drill hole and results are expected in late March or
early April.


.I 16404
.C
earn
.W
GULF RESOURCES AND CHEMICAL CORP <GRE> 4TH QTR.
    BOSTON, March 3 -
    Oper shr profit 34 cts vs loss 53 cts
    Oper net profit 3,337,000 vs 4,881,000
    Revs 32.7 mln vs 49.6 mln
    Year
    Oper shr profit 20 cts vs loss 90 cts
    Oper net profit 2,374,000 vs loss 9,381,000
    Revs 126.9 mln vs 160.5 mln
    NOTES: Operating net excludes loss 6,050,000 dlrs, or 64
cts a share, vs loss 24,839,000 dlrs, or 2.61 dlrs a share, in
quarter and loss 6,050,000 dlrs, or 64 cts a share, vs profit
64,013,000 dlrs, or 6.27 dlrs a share, from discontinued
operations
    1986 loss from discontinued operations includes 6.0 mln
dlrs charge, equal to 64 cts a share, to provide for additional
liabilities resulting from the 1981 closure of lead, zinc and
silver mining, smelting and refining business
    1986 year operating net includes pre-tax gain of 5.3 mln
dlrs, equal to 56 cts a share, from pension plan termination
and gain of 5.2 mln dlrs, or 56 cts a share, from reduction in
deferred taxes
    Effective Jan 1, 1987, company changed oil and gas
accounting to successful efforts from full cost, increasing
1986 year net 9.2 mln dlrs, or 98 cts a share, and increasing
1985 loss 4.3 mln dlrs, or 43 cts a share. The cumulative
effect of the change was to decrease retained earnings at Dec
31, 1986, by 14.0 mln dlrs


.I 16405
.C
coffee
.W
COFFEE TALKS COLLAPSE EASES NEED FOR U.S. BILL.
    WASHINGTON, March 3 - The collapse of International Coffee
Organization, ICO, talks on export quotas yesterday removes the
immediate need to reinstate U.S. legislation allowing the
customs service to monitor coffee imports, analysts here said.
    The Reagan administration proposed in trade legislation
offered Congress last month that authority to monitor coffee
imports be resumed. That authority lapsed in September 1986. A
bill also was introduced by Rep. Frank Guarini (D-N.J.).
    However, the failure of the ICO talks in London to reach
agreement on export quotas means the U.S. legislation is not
immediately needed, one analyst said. Earlier supporters of the
coffee bill hoped it could be passed by Congress quickly.
    "You're going to have a hard time convincing Congress (now)
this is an urgent issue," the coffee analyst said.


.I 16407
.C
earn
.W
PANSOPHIC SYSTEMS INC <PNS> 3RD QTR JAN 31 NET.
    OAK BROOK, Ill., March 3 -
    Shr 70 cts vs 56 cts
    Net 6,197,000 vs 4,880,000
    Revs 24.1 mln vs 17.1 mln
    Nine mths
    Shr 1.38 dlrs vs 1.20 dlrs
    Net 12.1 mln vs 10.4 mln
    Revs 52.5 mln vs 41.8 mln


.I 16408
.C
money-fx
.W
FORMER TREASURY OFFICIAL URGES CURRENCY REFORMS.
    WASHINGTON, March 3 - Former Treasury official C. Fred
Bergsten said a new exchange rate system is needed to replace
the fixed and flexible exchange rate systems which he said had
not worked.
    "I prefer a move to 'target zones' in which the major
countries would determine ranges of 15-20 pct within which they
would pledge to hold their exchange rates by direct
intervention and, as necessary, by changes in monetary and
other policies," Bergsten, now the director of the Institute
for International Economics, said in a statement to a House
Banking subcommittee.
    "The substantial correction of the exchange rate that has
occurred since early 1985 is enormously welcome, and should
produce a sizeable reduction in the U.S. trade deficit this
year and next, but the imbalance will not fall much below 100
billion dlrs on present policies, so much more is needed," he
said.


.I 16410
.C
earn
.W
KNUTSON MORTGAGE CORP <KNMC> SETS QUARTERLY.
    BLOOMINGTON, Minn., March 3 -
    Qtly div 10 cts vs 10 cts prior
    Pay April 13
    Record March 13


.I 16411
.C
earn
.W
******FORD MOTOR CO OF CANADA LTD 4TH QTR SHR 8.17 DLRS VS 55 CTS.
Blah blah blah.

.I 16414
.C
wheat;grain;
.W
YUGOSLAVIA WHEAT FREE OF WINTERKILL - USDA.
    WASHINGTON, March 3 - There was no evidence of winterkill
in Yugoslavian winter wheat during field travel along a line
running northwest from Belgrade to near Maribor, the U.S.
Agriculture Department's counselor in Belgrade said in a field
report.
    The report, dated February 26, said there is evidence of
delayed germination in most areas due to late seeding last fall
because of dry conditions.
    However warm temperatures over the past three weeks have
promoted some early growth and will help the crop catch up on
last fall's late seeding, it said.
    Some Yugoslav agriculture officials are concerned about the
situation because warm temperatures have brought the grain out
of dormancy and taken away snow protection a little early, the
report said.
    Cold temperatures over the next month could cause damage
under these conditions, they said.
    The report said all wheat farmers contacted during the
field trip were optimistic about the crop and the way it
emerged from winter.


.I 16416
.C
earn
.W
AUSIMONT COMPO NV <AUS> 4TH QTR NET.
    WALAHTAM, Mass., March 3 -
    Shr 42 cts vs 39 cts
    Net 12.3 mln vs 9,382,000
    Sales 172.0 mln vs 146.00 mln
    Avg shrs 29.5 mln vs 24.3 mln
    Year
    Shr 1.63 dlrs vs 1.35 dlrs
    Net 45.7 mln vs 30.0 mln
    Sales 665.5 mln vs 446.2 mln
    Avg shrs 28.0 mln vs 22.3 mln
    NOTE: translated at 1,339 Italian lire to dollar.


.I 16419
.C
acq
.W
NORTON <NRT> TO SELL SOUTH AFRICAN OPERATIONS.
    WORCESTER, Mass., March 3 - Norton co said it has agreed to
sell its remaining South African business, Norton co Pty Ltd,
to <Global Mining and Industrial Corp> of South africa for
undisclosed terms.
    The company said the unit accounts for less than two pct of
Norton revenues and is being sold because "Growing societal
pressures in the United States and the unsettled situation in
south Africa had required a disproportionate amount of
management tiome to oversee."
    Norton said the unit is profitable. 
    Norton said it will provide the South Afrcian unit with
future technical support, and products makde under that
agreement will continue to be marketed under the Norton
trademark.


.I 16420
.C
bop
.W
CANADA CURRENT ACCOUNT DEFICIT UP IN QUARTER.
    OTTAWA, March 3 - Canada's current account deficit widened
to a seasonally adjusted 2.27 billion dlrs in the fourth
quarter from a deficit of 1.94 billion dlrs in the third,
Statistics Canada said.
    The shortfall for the full year rose to 8.81 billion dlrs
from 1985's 584 mln dlr deficit, the federal agency said.
    The agency said the rise in the merchandise surplus, to
2.77 billion dlrs from 2.20 billion dlrs in the third quarter,
was more than offset by high deficits in servicies and
investment. The total non-merchandise deficit grew to 5.04
billion dlrs from 4.14 billion dlrs.
    The current account deficit was 912 mln dlrs in the fourth
quarter of 1985.
    In the capital account, not seasonally adjusted, there was
a total net inflow of 4.76 billion dlrs in the fourth quarter,
up from a net inflow of 3.22 billion dlrs in the third quarter
quarter.
    The total net capital inflow rose to 13.74 billion dlrs in
1986 from 7.68 billion dlr in 1985.


.I 16421
.C
earn
.W
HOME FEDERAL OF THE ROCKIES <HROK> 4TH QTR LOSS.
    FORT COLLINS, Colo., MArch 3 -
    Shr loss 2.07 dlrs vs profit 36 cts
    Net loss 1,088,000 vs profit 187,000
    Year
    Shr loss 12.23 dlrs vs profit 17 cts
    Net loss 645,000 vs profit 89,000
    NOTE: Home Federal Savings and Loan Association of the
Rockies.
    1986 net includes tax credits of 165,000 dlrs in quarter
and 189,000 dlrs in year.
    Net includes pretax loan loss provisions of 1,439,000 dlrs
vs 127,000 dlrs in quarter and 1,701,000 dlrs vs 222,000 dlrs
in year.


.I 16422
.C
gnp
.W
CANADA DECEMBER GDP GAINS 1.2 PCT.
    OTTAWA, March 3 - Canada's gross domestic product, by
industry, rose a seasonally adjusted 1.2 pct in December, the
largest monthly gain since April, 1986, Statistics Canada said.
    GDP, which fell 0.2 pct in November, was 2.1 pct above the
December, 1985 level, the federal agency said.
    Output of goods producing industries rose 1.6 pct in the
month, with virtually all the growth occurring in manufacturing
and mining. Services producing industries expanded 1.0 pct.


.I 16423
.C
acq
.W
SAATCHI AND SAATCHI BUYS CLEVELAND CONSULTING.
    LONDON, March 3 - Advertising agents Saatchi and Saatchi Co
Plc <SACHY> said it was buying <Cleveland Consulting Associates
Inc> for an initial consideration of 2.0 mln dlrs.
    Additional payments may be made annually through the year
ending March 31, 1991 to bring the total consideration up to
9.5 pct of Cleveland's average post-tax profits in the last two
years of the period.
    The purchase of Cleveland is a further step in Saatchi and
Saatchi's fast growing consulting industry, the company said.
It said its consulting operations now provide a platform for
major future expansion.
    For the 12 months ended 31 March 1986, Cleveland had
479,000 dlrs in pretax profits and forecasts one mln for 1987.
    At the Saatchi and Saatchi annual meeting today, the
company reported a particularly strong start to the current
year, with profits sharply higher than the same period last
year.
    Saatchi and Saatchi shares rose one pence on the Cleveland
announcement to 885p after yesterday's 870p close.


.I 16424
.C
acq
.W
UNILEVER'S <UN> CHESEBROUGH OFFERS TO SELL BASS.
    WESTPORT, Conn., March 3 - Chesebrough-Pond's Inc, recently
acquired by a unit of Unilever N.V., said it is offering to
sell its Bass shoe division, as a result of an
ongoing evaluation of the long-term direction of its
businesses.
    The diversified maker of health and beauty aids, said it
acquired Falmouth, Maine-based G.H. Bass and Co in 1978, when
the company reported annual sales of 59 mln dlrs. Bass is known
for its high-quality casual shoes.
    Chesebrough said Bass's 1986 sales exceeded 170 mln dlrs.


.I 16425
.C
earn
.W
CONTINENTAL <GIC> SEES 1987 NET UP FROM TAX LAW.
    NEW YORK, March 3 - Continental Corp said the fresh start
provision of the Tax Reform Act of 1986 may add 1.30 to 1.60 to
1987 earnings per share.
    The insurance holding company had net earnings of 449.6 mln
dlrs, or, or 7.42 per share, in 1986.
    John Loynes, Continental chief financial officer, said the
fresh start provision allowed the company to discount opening
tax reserves to January 1, 1987, which released deferred taxes
into earnings.
    Loynes said the provision's potential benefit would decline
gradually over the next four years, during which time
Continental will pay 250 mln to 350 mln dlrs more in taxes.
    Loynes added, however, the higher taxes are not expecetd to
have a significant impact on earnings.


.I 16428
.C
earn
.W
FORD MOTOR CO OF CANADA LTD <FC> 4TH QTR NET.
    OAKVILLE, Ontario, March 3 -
    Shr 8.17 dlrs vs 55 cts
    Net 67.7 mln vs 4.5 mln
    Revs 3.67 billion vs 3.54 billion
    Year
    Shr 12.19 dlrs vs 24.00 dlrs
    Net 101.1 mln vs 199.0 mln
    Revs 14.33 billion vs 13.35 billion
    Note: 90 pct owned by Ford Motor Co <F>


.I 16429
.C
earn
.W
******ROYAL BANK OF CANADA 1ST QTR SHR 88 CTS VS 1.22 DLRS.
Blah blah blah.

.I 16430
.C
veg-oil;livestock;carcass;
.W
BELGIAN MINISTER SEES NEW ACCORD ON EC OILS/FATS.
    WASHINGTON, March 3 - Belgian Foreign Trade Minister Herman
De Croo said he believed there would be a compromise within the
European Community, EC, on its proposed tax on vegetable fats
and oil, averting a pledged tough trade response by the United
States.
    De Croo, in Washington for talks with Administration
officials and Congressional leaders, said at a news conference
there is a battle within the community on the tax on fats and
oils used in the 12 EC countries.
    But he added, "I do not think it will be a big issue because
there will be a big debate inside Europe," adding "so there will
be a compromise."
    U.S. Trade Representative Clayton Yeutter said yesterday
that if the community went ahead with the tax, the United
States would respond "vigorously" to protect its trade rights and
access to community markets.
    De Croo also said he thought the community would postpone
its April 28 deadline for imposing new slaughterhouse rules to
cover all meats brought into EC nations if some progress was
made toward resolving differences with the United States.
    U.S. officials say its rules now meet health standards and
the EC should require equivalent but not identical standards.
    He also told reporters he hoped the community could deal
with another controversial health proposal that would forbid
the feeding of hormones to cattle, which is also opposed by the
United States.
    De Croo gave no deals on how he though the issue might be
resolved. That rule is go into effect on January 1, 1988.
    He said U.S. cattlemen say there is no reason to change
slaughterhouse practices in April if the meat is to be banned a
few months later by the hormone rule.


.I 16431
.C
earn
.W
ANITEC IMAGE TECHNOLOGY CORP <ANTC> 2ND QTR NET.
    BINGHAMTON, N.Y., March 3 -
    Shr 33 cts vs 28 cts
    Net 3,722,000 vs 3,103,000
    Sales 33.0 mln vs 31.8 mln
    Avg shrs 11.2 mln vs 11.1 mln
    1st half
    Shr 68 cts vs 58 cts
    Net 7,585,000 vs 6,346,000
    Sales 65.9 mln vs 61.3 mln
    Avg shrs 11.2 mln vs 11.0 mln
    NOTE: Share adjusted for three-for-two October 1986 stock
split.


.I 16432
.C
money-fx;interest;
.W
DUTCH MONEY MARKET DEBT BARELY CHANGED IN WEEK.
    AMSTERDAM, March 3 - Loans and advances from the Dutch
central bank to the commercial banks were barely changed at
12.9 billion guilders in the week up to and including March 2,
the central bank weekly return showed.
    The Treasury's account with the bank dropped 1.3 billion
guilders. Dealers said a larger amount of funds in the form of
interest and repayments on state loans went out than came in
the form of tax payments to the state.
    Notes in circulation rose 360 mln to 27.7 billion as the
public withdrew cash to celebrate this week's Carnival festival
or take an end-of-winter holiday break, dealers said.
    Current money market rates are at 5-3/4 to 6-1/4 pct for
call money against 5-1/4 to 5-3/8 a week ago, and between
5-5/16 and 5-9/16 pct against 5-1/4 to 5-1/2 for one to 12
month periods, dealers said.
    The cause for the rise was a rather tight 4.8 billion
guilders of special advances set by the Bank yesterday compared
with 8.0 billion guilders for the previous set, dealers added.
    They expect the money market shortage to continue around 12
billion guilders this week.
    The weekly return showed total Dutch gold and currency
reserves rose 11.3 mln guilders to 56.0 billion guilders.


.I 16437
.C
earn
.W
DASA CORP <DASA> YEAR NET.
    BOSTON, March 3 -
    Shr profit three cts vs loss 11 cts
    Net profit 507,000 vs loss 1,823,000
    Revs 11.2 mln vs 204,000


.I 16438
.C
acq
.W
GROUP TRIMS MATERIAL SCIENCES <MSC> STAKE.
    WASHINGTON, March 3 - An investor group led by Central
National-Gottesman Inc, a New York investment firm, and its
executive vice president, Edgar Wachenheim, said they cut their
stake in Material Sciences Corp to less than five pct.
    In a filing with the Securities and Exchange Commission,
the group said it sold 19,500 Material Sciences common shares
between Feb 11 and 19 at prices ranging from 24.00 to 27.648
dlrs a share, leaving it with 239,500 shares, or 4.7 pct.
    As long as the group's stake remains below five pct, it is
not required to disclose further dealings in Material Sciences
common stock.


.I 16440
.C
interest
.W
******FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 16442
.C
earn
.W
ADC TELECOMMUNICATIONS INC <ADCT> 1ST QTR NET.
    MINNEAPOLIS, March 3 - Periods ended Jan 31
    Shr 28 cts vs 35 cts
    Net 2,374,000 vs 2,987,000
    Sales 35.2 mln vs 34 mln
    Backlog 36.8 mln vs 33.9 mln


.I 16443
.C
acq
.W
TYLAN CORP <TYLN> TO SELL FURNACE PRODUCT LINE.
    CARSON, Calif., March 3 - Tylan Corp aid it has retained
the investment banking firm Kahn and Harris to sell its furnace
product line.
    The company said it has already been contacted by several
potential buyers.
    In 1986, Tylan's furnace product shipments in the U.S.
represented 10.3 mln dlrs of the company's total net sales of
28.4 mln dlrs.


.I 16444
.C
earn
.W
<ROYAL BANK OF CANADA> 1ST QTR JAN 31 NET.
    MONTREAL, March 3 -
    Shr basic 88 cts vs 1.22 dlrs
    Shr diluted 83 cts vs 1.10 dlrs
    Net 114,108,000 vs 140,389,000
    Avg shrs 107.5 mln vs 100.5 mln
    Loans 66.4 billion vs 65.9 billion
    Deposits 82.8 billion vs 84.4 billion
    Assets 98.7 billion vs 96.7 billion.


.I 16445
.C
interest
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 3 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-1/4 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 16448
.C
earn
.W
SUPRADUR COS INC <SUPD> YEAR NET.
    RYE, N.Y., March 3 -
    Oper shr 1.58 dlrs vs 77 cts
    Oper net 1,648,000 vs 817,000
    Sales 25.7 mln vs 20.5 mln
    NOTE: Net excludes discontinued operations gain 451,000
dlrs vs loss 4,310,000 dlrs.


.I 16451
.C
grain;corn;sorghum;
.W
U.S. SETS CORN DEFICIENCY PAYMENT HALF PIK CERTS.
    WASHINGTON, March 3 - The upcoming five-month deficiency
payments to corn and sorghum farmers will be made half in cash
and half in generic commodity certificates, a senior
Agriculture Department official told Reuters.
    Around 300 mln dlrs of the in-kind certificates, or
"certs," will be mailed out to farmers around March 15 or 16,
Tom von Garlem, Assistant Deputy Administrator for USDA's state
and county operations, said.
    The decision to make the payments in a 50/50 cash/certs
ratio was made Monday, but payments to producers will be
delayed until mid-month due to a problem with USDA's computer
program, von Garlem said.
get 11.5 cts per bushel in this next payment -- 5.75 cts in
certs and around 5.5 cts cash (5.75 cts minus Gramm-Rudman).
    Farmers who did not receive advance deficiency payments at
signup will receive 63 cts per bushel. Slightly more than half
of this payment will be in cash, von Garlem said, but he said
this will not markedly upset the 50/50 ratio, since most
farmers got advance payments.
    "The final certificate payments will be very close to 300
mln dlrs," he said.
    When asked if the Office of Management and Budget had
resisted the cash/certs ratio, the USDA official said that "we
proposed 50/50 and OMB accepted it."


.I 16454
.C
earn
.W
WALLACE COMPUTER SERVICES INC <WCS> 2ND QTR NET.
    HILLSIDE, ILL., March 3 -
    Shr 69 cts vs 64 cts
    Net 7,046,000 vs 6,492,000
    Sales 85.7 mln vs 79.6 mln
    Six Mths
    Shr 1.28 dlrs vs 1.19 dlrs
    Net 13,098,000 vs 12,006,000
    Sales 166.3 mln vs 153.3 mln
    NOTE: Periods end January 31, 1987 and 1986, respectively.


.I 16455
.C
earn
.W
AMERICAN VANGUARD CORP <AMGD> YEAR NET.
    LOS ANGELES, March 3 -
    Shr 57 cts vs 27 cts
    Net 1,002,000 vs 470,000
    Sales 15.9 mln vs 12.0 mln
    Note: 4th qtr data not available


.I 16457
.C
earn
.W
NORTH AMERICAN BIOLOGICALS INC <NBIO> 4TH QTR.
    MIAMI, March 3 -
    Oper shr one ct vs three cts
    Oper net 99,000 vs 327,000
    Revs 12.1 mln vs 8,800,000
    Avg shrs 15.5 mln vs 11.3 mln
    Year
    Oper shr six cts vs 11 cts
    Oper net 841,000 vs 956,000
    Revs 44.1 mln vs 34.4 mln
    Avg shrs 15.3 mln vs 8,519,677
    NOTE: Net excludes tax credits of 299,000 dlrs vs 29,00000
dlrs in quarter and 809,000 dlrs vs 71,000 dlrs in year.


.I 16458
.C
earn
.W
OMNICOM GROUP INC <OMCM> 4TH QTR NET.
    NEW YORK, March 3 -
    Shr profit 27 cts vs profit 51 cts
    Net profit 6,600,000 vs profit 12,231,000
    Revs 211.7 mln vs 193.4 mln
    12 mths
    Shr loss 17 cts vs profit 1.27 dlrs
    Net loss 4,077,000 vs profit 30,142,000
    Revs 753.5 mln vs 673.4 mln
    NOTE: in qtr ended 1986 the company recognized expenses of
5,948,000 for restructing the combined operations of BBDO,
Doyle Dane Bernbach and Needham Harper Worldwide in August 1986
before tax gains. These relate primarily to the conosolidation
and elimination of duplicate facilities and staff.
    for the year 1986, the provisions for mergers and
restructuring expenses brought non-recurring expenses to
40,292,000 before tax gains, of which 8,863,000 represented
merger costs and 31,429,000 related to restructuring of the
combine operations.



.I 16463
.C
earn
.W
CORRECTION - ASHTON-TATE ITEM.
    In Torrance, Calif., item ASHTON-TATE <TATE> 4TH QTR NET,
please read 1986 quarter average shares as 24.7 mln, not 200.7
mln.     


.I 16467
.C
cpi
.W
CHILEAN CONSUMER PRICES RISE 1.7 PCT IN FEBRUARY.
    SANTIAGO, March 3 - Chile's consumer price index rose 1.7
pct in February to 562.01 (December, 1978 equals 100) after
increases of 2.0 pct in January and 0.9 pct in February 1986,
the government's National Statistics Institute said.
    Inflation as measured by the index rose to 17.5 pct over
the 12 months to the end of February, compared with 16.6 pct
last month and 24.5 pct to the end of February, 1986.
    In the first two months of the year, inflation was 3.8 pct,
against 3.6 pct in the same period of 1986.


.I 16468
.C
copper
.W
COPPER STUDY GROUP CONSIDERED AT GENEVA MEETING.
    GENEVA, March 3 - Major copper producing and consuming
countries are considering a U.S. proposal to set up a study
group to review the world copper market, delegates said.
    The U.S. initiative was introduced last December at a
meeting held here under the auspices of the United Nations
Conference on Trade and Development (UNCTAD).
    The U.S., the world's largest copper consumer and second
biggest producer after Chile, has proposed setting up a body to
improve statistics and market transparency of the copper
economy, and provide a forum for discussion.
    The new body would not aim at negotiating measures to
stabilise depressed world prices.
    This week's meeting, which began yesterday, is due to end
Friday.


.I 16471
.C
oilseed;rapeseed;
.W
JAPAN BUYS 5,000 TONNES CANADIAN RAPESEED.
    WINNIPEG, March 3 - Japan bought 5,000 tonnes of Canadian
rapeseed overnight at an undisclosed price for April shipment,
trade sources said.


.I 16472
.C
earn
.W
ROYAL BANK/CANADA SEES HIGHER 1987 LOAN LOSSES.
    MONTREAL, March 3 - <Royal Bank of Canada> said it
estimates 1987 loan losses at one billion dlrs, a 25 mln dlr
increase over last year.
    Royal Bank said it set its provisions "given the continued
debt-servicing problems ... in the North American energy
industry and the uncertain outlook for energy prices," and also
continued to add to its general provisions for loans to
troubled borrower countries.
    The bank's loan loss provision for the first quarter ended
January 31 rose to 223 mln dlrs from 187 mln dlrs in the
year-ago quarter.
    The bank said non-accrual loans, net of provisions for loan
losses, totalled 2.2 billion dlrs on January 31, up from 2.0
billion dlrs a year ago.
    In reporting lower first quarter earnings, chairman Allan
Taylor said problems with credit quality--particularly in loans
associated with the energy sector--continue to have a
substantial adverse effect on the bank's earnings.
    Taylor said profitability of the bank's international
operations remains weak, reflecting resource-related
difficulties of private and public sector borrowers and
unsatisfactory results from capital market activities.
    Taylor said it would be premature to speculate on the
outcome of debt resturcturing negotiations with Brazil or their
potential impact on the Royal Bank.
    The bank earlier reported first quarter profit fell to
114.1 mln dlrs from 140.4 mln dlrs a year ago.


.I 16473
.C
acq
.W
PANTERA <PANT> AND PIZZA <PZA> AGREE TO MERGE.
    ST. LOUIS, MO., March 3 - Pantera's Corp said it agreed in
principle to acquire Pizza Inn Inc in a cash and stock
transaction.
    Under terms of the proposed transaction, each Pizza Inn
share can be exchanged for either three dlrs in cash plus the
lesser of 1.4 shares of Pantera's common stock or 11.50 dlrs
market value of Pantera's stock, or four dlrs in cash plus a
unit consisting of one share of Pantera's stock and a
non-transferrable right to receive up to 0.55 share of
Pantera's stock under certain conditions, it said.
    Completion of the transaction is subject to arrangement of
financing, negotiation of a definitive agreement, and various
regulatory approvals, it said.
    Pantera's said Pizza Inn's largest shareholder, F.J.
Spillman, previously granted Pantera's an option to buy more
than one mln shares of Pizza Inn common stock owned by him.
    Pantera's also said it retained Drexel Burnham Lambert Inc
to act as its financial advisor in connection with the merger.
Pizza Inn has retained Dean Witter Reynolds Inc to act as its
financial advisor, Pantera's said.
    Yesterday, Pantera's stock closed at 9.50 dlrs on NASDAQ,
while Pizza Inn's stock was quoted at 12 dlrs when the Amex
halted trading pending the announcement of the proposed merger.
    From its Dallas headquarters, Pizza Inn said completion of
the transaction is subject to certain conditions including that
the price of Pantera's stock average not less than seven dlrs
during the 20 trading days before the merger.
    Under the agreement, Pizza Inn said it will still be
permitted to complete a leveraged buyout agreement with Pizza
Inn Acquiring Corp, which has been approved by its
shareholders, but is subject to otaining financing.
   
 More

.I 16474
.C
money-fx;interest;
.W
SWISS MONEY MARKET PAPER YIELDS 3.286 PCT.
    ZURICH, March 3 - The Swiss Federal Government's new series
of six-month money market certificates raised 177.5 mln Swiss
francs at an issue price of 98.401 pct to give an average
annual yield of 3.286 pct, the National Bank said.
    Payment date is March 5.
    The last series of six-month paper issued in January raised
159.6 mln francs at 98.392 pct to give an average yield of
3.251 pct.


.I 16476
.C
iron-steel
.W
NIGERIA, GUINEA SET UP IRON ORE FIRM WITH LIBERIA.
    LAGOS, March 3 - Nigeria and Guinea agreed to set up a new
company with Liberia to carry out the 14-year-old
Mifergui-Nimba iron ore project, an official communique said.
    The communique was issued after two days of talks here
between Guinean natural resources minister Ousmane Sylla and
Nigerian minister of mines and power Bunu Sheriff Musa.
    Originally, Guinea held 50 pct in the project and Nigeria
16.2 pct with firms from several other countries also involved,
but the project ran into problems over funding and the slump in
world iron ore markets.
    Musa said Liberia was invited to join and its share will be
decided after a project feasibility study. This would be
completed in May after which finance will be sought. Officials
said the study will be undertaken with the help of the World
Bank, which is also expected to give financial support.
    Production, originally estimated at 15 mln tonnes a year,
will be 12 mln initially and is expected to begin in early
1990.
    On an agreement between the two countries to prospect for
uranium in Guinea, the communique said Musa and Sylla agreed
that because of poor market conditions, it would be extended to
cover exploration for gold, diamonds, cobalt, nickel and
silver.


.I 16477
.C
earn
.W
DISTRIBUTED LOGIC CORP <DLOG> 1ST QTR LOSS.
    ANAHEIM, Calif., March 3 - Qtr ended Jan 31
    Shr loss nine cts vs profit 13 cts
    Net loss 231,256 vs profit 341,730
    Revs 2,793,677 vs 3,676,296


.I 16478
.C
ipi
.W
CANADA INDUSTRIAL PRODUCTION UP 2.53 PCT.
    OTTAWA, March 3 - Canadian industrial production rose 2.53
pct in December after falling 0.51 pct in November, Statistics
Canada said.
    The federal agency said year-over-year production was off
0.65 pct in December, compared with a decline of 1.65 pct in
November.


.I 16479
.C
acq
.W
LIFETIME <LFT> TO BUY SHARES OF NIPPON LACE.
    NEW YORK, March 3 - Lifetime Corp said it agreed to buy
five mln shares, or 16 pct, of <Nippon Lace Co Ltd> for 3.28
dlrs a share, or 16.5 mln dlrs.
    It said it plans to enter the health care business in
Japan.
    In addition, it said <Koba Electronics Co Ltd>, an
affiliate of Lifetime, will buy four mln unissued shares, or a
12 pct stake, of Nippon for 20 mln dlrs or five dlrs a share.
    The company said Ohta Shoji, chief executive officer of
<Toho Mutual Life Insurance Co>, owns the majority of Koba
Electronics' shares. Toho Mutual Life is also the largest
shareholder in Nippon Lace, the company said.
    Lifetime also said the <Private Bank and Trust of Zurich>,
on behalf of Lifetime director and shareholder Terence Ramsden,
intends to subscribe for two mln shares of Nippon Lace at the
same price paid by Lifetime.


.I 16480
.C
earn
.W
INTERMEDICS INC <ITM> 1ST QTR NET.
    ANGLETON, Tex. March 3 -
    Oper shr 26 cts vs 18 cts
    Oper net 2,877,000 vs 1,363,000
    Revs 44.3 mln vs 40.8 mln
    Avg shrs 10.9 mln vs 10.5 mln
    NOTE: prior qtr excludes loss 475,000, or five cts per
share, for discontinued operations for the sale of subsidiaries
Intermedics Intraocular Inc, Electronics Inc, and Intermedics
Infusaid Inc.
    Excludes 1987 qtr 1,694,000 operating loss carryforwards vs
78,000 qtr prior.


.I 16484
.C
acq
.W
******BENEFICIAL CORP TO SELL INSURANCE UNIT, REMOVING COMPANY FROM INSURANCE BUSINESS.
Blah blah blah.

.I 16487
.C
earn
.W
******FORD CANADA CUTS ANNUAL DIVIDEND BY SIX DLRS TO SIX DLRS CASH A SHARE.
Blah blah blah.

.I 16489
.C
earn
.W
PAINE WEBBER RESIDENTIAL REALTY INC <PWM> DIV.
    COLUMBIA, Md. March 3 -
    Qtrly 25 cts vs 16 cts
    Pay March 30
    Record March 13
    NOTE: Prior qtr is for two months operation, October and
November and represents a parital dividend.


.I 16490
.C
earn
.W
OMNICOM GROUP <OMCM> SETS REGULAR PAYOUT.
    NEW YORK, March 3 -
    Qtlry div 24.5 cts vs 24.5 cts
    Pay April 6
    Record March 16


.I 16493
.C
earn
.W
KNUTSON MORTGAGE <KNMC> SEES STRONG SECOND QTR.
    BLOOMINGTON, Minn., March 3 - Knutson Mortgage Corp said it
expects strong earnings performance for its initial fiscal
second quarter earnings ending March 31 since going public in
September 1986.
    Albert Holderson, Knutson chairman, said he expects
earnings of about 40 cts per share for the quarter as a result
of a strong mortgage business during the quarter.
    Knutson earlier declared a quarterly dividend of 10 cts a
share, versus 10 cts a share prior, payable April 13 to
shareholders of record March 13.


.I 16494
.C
reserves
.W
DANISH RESERVES RISE IN FEBRUARY.
    COPENHAGEN, March 3 - Denmark's net official reserves rose
to 36.34 billion crowns in February from 28.00 billion in
January, against a revised 45.85 billion in February 1986, the
central bank said in its monthly balance sheet report.
    Total net reserves, including reserves held by commercial
and major savings banks, rose to 38.26 billion crowns from
30.11 billion in January compared with a revised 35.99 billion
in February last year.
    The bank said provisional figures showed net registered
private and public capital imports of 10.3 billion crowns in
February.


.I 16496
.C
earn
.W
INTERMEDICS INC <ITM> 1ST QTR FEB ONE NET.
    ANGLETON, Texas, March 3 -
    Oper shr 26 cts vs 18 cts
    Oper net 2,877,000 vs 1,838,000
    Revs 44.3 mln vs 40.8 mln
    NOTE: Current 1st qtr oper net excludes operating loss
carryforward of 1,694,000 or 16 cts per share. 1986 1st qtr
oper net excludes loss carryforward of 78,000 dlrs or one ct
per share and loss from discontinued operations of 475,000
dlrs.


.I 16497
.C
earn
.W
CARME INC <CAME> 2ND QTR JAN 31 NET.
    NOVATO, Calif., March 3 -
    Shr nine cts vs one ct
    Net 247,489 vs 27,301
    Sales 1,933,107 vs 796,613
    Six mths
    Shr 21 cts vs five cts
    Net 565,106 vs 121,997
    Sales 3,781,970 vs 1,778,110


.I 16498
.C
earn
.W
WILLCOX AND GIBBS INC <WG> 4TH QTR NET.
    NEW YORK, March 3 -
    Shr 42 cts vs 76 cts
    Net 2.3 mln vs 3.3 mln
    Revs 72.3 mln vs 59.8 mln
    Year
    Shr 1.48 dlrs vs 2.59 dlrs
    Net 7.6 mln vs 11.1 mln
    Revs 261.7 mln vs 224.7 mln
    NOTE: 1985 net includes extraordinary gain of 1.5 mln dlrs
or 35 cts per share in 4th qtr and 5.1 mln or 1.19 dlrs for the
year.
   


.I 16501
.C
earn
.W
OMNICOM GROUP INC <OMCM> 4TH QTR NET.
    NEW YORK, March 3 -
    Shr profit 27 cts vs profit 51 cts
    Net profit 6,600,000 vs profit 12.2 mln
    Revs 211.7 mln vs 193.4 mln
    Qtly div 24.5 cts vs 24.5 cts
    Avg shrs 24.2 mln vs 23.8 mln
    Year
    Shr loss 17 cts vs profit 1.27 dlrs
    Net loss 4,077,000 vs profit 30.1 mln
    Revs 753.5 mln vs 673.4 mln
    Avg shrs 24.4 mln vs 23.7 mln
    NOTE: Qtly div payable April six to holders of record March
16.
    1986 4th qtr and year net includes a charge of 5.9 mln dlrs
and 31.4 mln dlrs, respectively, for corporate restructuring.



.I 16502
.C
earn
.W
FORD MOTOR CO OF CANADA LTD<FC> CUTS ANNUAL DIV.
    OAKVILLE, Ontario, March 3 -
    Annual div six dlrs vs 12 dlrs prior
    Pay March 19
    Record March 13
    Note: 1986 payout includes two dlrs a share extra dividend
    1985 payout includes four dlrs a share extra dividend


.I 16504
.C
copper
.W
TOTAL U.S. COPPER STOCKS LOWER IN JANUARY.
    NEW YORK, March 3 - Total copper stocks held by U.S. rod
mills and refiners (including wirebars, cathodes, scrap, rod
and in-process material) dropped to 155,467,000 lbs at the end
of January from 203,513,000 lbs at the end of December, the
American Bureau of Metal Statistics said.
    Rod stocks held by refiners and rod mills decreased to
61,384,000 lbs in January from 69,986,000 lbs in December.
    Cathode inventories at rod mills fell to 86,456,000 lbs in
January from 124,409,000 lbs in December, while wirebar stocks
were lower at 3,508,000 lbs versus 4,913,000 lbs in December.
    December rod mill wirebar use nearly doubled to 3,148,000
lbs in January from 1,540,000 lbs in December. Cathode use by
mills and refiners increased to 255,266,000 lbs in January from
238,821,000 lbs in December.


.I 16505
.C
wheat;grain;
.W
ONE OFFER FOR SRW WHEAT ON CALL SESSION, NO MILO.
    ST LOUIS, March 3 - One offer but no bid was posted for SRW
wheat on the call session at the St Louis Merchants Exchange
today. There were no bids or offers for milo.
    June 15-July 15 bill of lading for wheat was offered at 17
over July, no comparison, no bid.


.I 16508
.C
earn
.W
UNITED HEALTHCARE CORP <UNIH> 4TH QTR NET.
    MINNEAPOLIS, March 3 - 
    Shr 10 cts vs 13 cts
    Net 1,553,000 vs 1,541,000
    Revs 73.1 mln vs 32.1 mln
    Avg shrs 15,474,000 vs 12,316,000
    Year
    Shr 47 cts vs 24 cts
    Net 7,241,000 vs 2,835,000
    Revs 216.2 mln vs 101.2 mln
    Avg shrs 15,492,000 vs 11,921,000
    Note: Net income includes extraordinary profit from
recognition of tax loss carryforward of 920,000 dlrs, or six
cts a share, in 1986 year, and of 785,000 dlrs, or seven cts a
share, in both 1985 periods.


.I 16511
.C
earn
.W
RAYTECH CORP <RAY> 4TH QTR DEC 28 NET.
    TRUMBULL, Conn., March 3 -
    Shr profit 78 cts vs loss 1.05 dlrs
    Net profit 2,336,000 vs loss 3,002,000
    Revs 26.0 mln vs 26.7 mln
    Year
    Shr profit 1.59 dlrs vs loss 6.35 dlrs
    Net profit 4,688,000 vs loss 18.2 mln
    Revs 113.5 mln vs 112.4 mln
    NOTE: 1986 4th qtr and yr includes loss carryfoward of
534,000 dlrs and 1,662,000 dlrs, respectively.


.I 16512
.C
earn
.W
DATAMAG INC <DMAG> 1ST QTR DEC 31 LOSS.
    SCOTTSDALE, Ariz., March 3 -
    Net loss 92,623 vs profit 11,209
    Sales 93,483 vs 189,388
    Note: per share data not available, as company went public
in January, 1987.


.I 16513
.C
earn
.W
ROYAL BANK SEES IMPROVED RESULTS.
    MONTREAL, March 3 - <Royal Bank of Canada>, in reporting a
19 pct drop in first quarter earnings, said it expects to
report improved results in future earnings periods.
    "Healthy consumer credit growth, record fee-based income,
highly profitable securities and foreign exchange trading, and
a solid capital position...combined with the restraint of
non-interest expenses, should lead to improved results in the
periods ahead," chairman Allan Taylor said in a statement.
    The bank earlier reported profit for the first quarter
ended January 31 fell to 114 mln dlrs from 140 mln dlrs a year
ago.
    Taylor said loans to the energy sector continue to
substantially hurt earnings while profitability of the bank's
international operations remains weak, reflecting
resource-related difficulties of private and public sector
borrowers and unsatisfactory results from capital market
activities.
    The bank said earnings from domestic operations rose to 103
mln dlrs in the first quarter from 98 mln dlrs a year ago while
earnings from international operations plunged to 11 mln dlrs
from 42 mln dlrs last year.
    Royal Bank said first quarter international net interest
income declined from last year, reflecting reduced revenues
from international investment banking as well as a significant
loss on disposal of its affiliate in Trinidad and Tobago.
    Other income rose to 251 mln dlrs from 220 mln dlrs last
year. The rise was due to higher commercial banking and retail
deposit service fees, and higher foreign exchange revenue but
lower securities commissions from international investment bank
operations partly offset the gains, Royal Bank said.
    The bank said a two billion dlr increase in total assets to
98.7 billion dlrs was due mainly to continued growth in
consumer lending, particularly residential mortgages.


.I 16517
.C
trade
.W
BELGIAN SAYS EC WOULD REACT TO TEXTILE BILL.
    WASHINGTON, March 3 - Belgian Foreign Trade Minister Herman
De Croo said if Congress passed legislation curbing world
textile imports the only way the European Community (EC) could
react was to retaliate.
    De Croo said at a news conference "if you limit textile
imports, you will re-orient textiles to Europe."
    And that he said would trigger EC taxes on U.S. goods.
    Congress passed a textile bill two years ago, but it was
vetoed by President Reagan on grounds that curbing imports to
protect the domestic textile industry would trigger retaliation
U.S. trading partners.
    A similar bill has been introducted this year, in a
Congress with a bigger Democratic majority and with a President
weakened by the Iran scandal.
    De Croo, here for talks with Administration officials and
Congressmen, said if a textile bill passed, "the only way we
could react would be retaliation, and it would cause more
retaliation, which is not a good way to deal with problems."
    He said if a textile bill was enacted, "we will impose taxes
on a lot of American products."  He said "it would be stupid. We
have to avoid that."
    He said Congressmen seem upset mosty with Japan, because of
its massive trade suprlus with the United States, and not with
EC nations, but EC nations will be hurt by the diverted 
shipments of Asian textiles.
    De Croo also criticized the way U.S. officials try to solve
EC trade issues, saying "each time we come in contact, it a
conflict contact. The clouts are coming fom the West."
    He said it then is a crisis atmosphere with officials cross
the Atlantic and dramatized with headlines.
    "This is not the way to work in a serious way between two
big powers," De Croo said.
   


.I 16518
.C
earn
.W
KAY CORP <KAY> 4TH QTR NET.
    NEW YORK, March 3 -
    Oper shr 25 cts vs 1.21 dlrs
    Oper net 1,366,000 vs 6,287,000
    Revs 251.3 mln vs 107.1 mln
    Year
    Oper shr 1.10 dlrs vs 1.06 dlrs
    Oper net 5,552,000 vs 4,982,000
    Revs 827.5 mln vs 434.4 mln
    NOTE: Oper net excludes results of Kay Jewelers Inc, a
former subsidiary. On Dec 31, 1986 company distributed
remaining 80.4 pct interest in subsidiary to Kay Corp holders.
    1985 amts restated in connection with company's
distribution of investment in Kay Jewelers Inc.
    1986 4th qtr and yr oper net excludes 8,308,000 dlrs or
1.52 dlrs per share, and 7,774,000 dlrs or 1.54 dlrs per share,
respectively, for equity in net income of spun-off unit. 1985
4th qtr and yr oper net excludes 6,806,000 dlrs or 1.28 dlrs
per share and 5,770,000 dlrs or 1.09 dlrs per share,
respectively, for equity in net earnings of spun-off unit.
    1985 oper net also excludes 2,778,000 or 52 cts per share
for adoption of new pension accounting rules and ine cts per
share for gain from assets sales.


.I 16519
.C
trade
.W
******ROSTENKOWSKI SAYS HE WILL OPPOSE PROTECTIONIST TRADE BILL IN U.S. HOUSE.
Blah blah blah.

.I 16520
.C
earn
.W
PANTASOTE INC <PNT> 4TH QTR LOSS.
    GREENWICH, Conn., March 3 -
    Oper shr loss four cts vs loss 33 cts
    Oper net loss 154,000 vs loss 1,301,000
    Sales 30.0 mln vs 27.0 mln
    Year
    Oper shr profit 60 cts vs loss 16 cts
    Oper net profit 2,364,000 vs loss 608,000
    Sales 113.5 mln vs 132.8 mln
    NOTE: Net excludes extraordinary charges from provision for
roofing products warranties and costs from sale of
printing/laminate division of 320,000 dlrs vs 10.3 mln dlrs in
quarter and 4,3200,000 dlrs vs 12.7 mln dlrs in year.
    Net excludes tax credits of 62,000 dlrs vs 41,000 dlrs in
quarter and 127,000 dlrs vs 88,000 dlrs in year.


.I 16521
.C
trade
.W
ROSTENKOWSKI OPPOSES PROTECTIONIST TRADE BILL.
    WASHINGTON, March 3 - House Ways and Means Committee
Chairman Dan Rostenkowski said Congress must avoid a temptation
to pass a protectionist trade bill this year.
    In remarks prepared for delivery before the National Press
Club, Rostenkowski, D-Ill., predicted major trade legislation
will be sent to President Reagan by the end of this year.
    But he warned that his "conciliatory message" on the trade
bill did not mean he would oppose a proposal that would warn
other countries their access to the American market would be
curtailed unless they opened their markets to U.S. goods.
    "Complaints about (foreign trade) restraints are not a
smoke screen for protectionism, they a plea for fairness,"
Rostenkowski said.
    "It is only reasonable to ask the nations that have denied
us access to open up in return for continued freedom in the
American market," he added.
    However, he said there would likely be changes in the
market access proposal from the plan which cleared the House
last year. That plan would have set a specific time table for
foreign countries to ease import restraints or they would face
a 25 pct cut in exports to the United States.


.I 16523
.C
acq
.W
IMTEC <IMTC> GETS MERGER OFFER.
    BELLOWS FALLS, Vt., March 3 - Imtec Inc said some
shareholders of Computer Identics Inc <CIDN> have proposed a
merger of the two companies.
    The company said the shareholders had previously expressed
dissatisfaction with Computer Identics' management and had
informed Computer Identics that the present board no longer had
the support of a majority of shares held.
    It said the shareholders had called for the resignation of
all but one of Computer Identics' directors and suggested that
a new board pursue merger talks with Imtec.  But Imtec said no
merger talks havew yet taken place.


.I 16525
.C
earn
.W
KAY JEWELERS INC <KJI> 4TH QTR NET.
    ALEXANDRIA, Va., March 3 -
    Shr 1.62 dlrs vs 1.33 dlrs
    Net 10.3 mln vs 8,459,000
    Revs 127.5 mln vs 95.7 mln
    Year
    Shr 1.52 dlrs vs 1.20 dlrs
    Net 9,669,000 vs 7,481,000
    Revs 278.1 mln vs 232.00 mln
          


.I 16527
.C
coffee
.W
ICO PACT UNLIKELY BY AUTUMN - ITALIAN ADVISER.
    TRIESTE, Italy, March 3 - The prospects of the
International Coffee Organization (ICO) reaching an agreement
on coffee export quotas before September appear dim, Alberto
Hesse, former president of the European Coffee Federation,
said.
    "There is no real goodwill in certain delegations to go to
quotas," Hesse, who advises the Italian Foreign Affairs Ministry
on coffee issues, told Reuters. He declined to name the
delegations.
    A special meeting between importing and exporting countries
ended in a deadlock late yesterday after eight days of talks
over how to set quotas.
    The ICO executive board will meet from March 30 to April 1
but the full council is not due to meet again until September.
"I am not optimistic about an agreement soon," Hesse said.


.I 16528
.C
earn
.W
WALL STREET STOCKS/ANACOMP INC <AAC>.
    CHICAGO, March 3 - Anacomp Inc, one of the most actively
traded NYSE issues, rose today as at least one analyst expected
earnings to be boosted by its planned acquisition of a
micrographics company.
    Anacomp rose 1/2 to 6-3/4 on volume of 950,000 shares after
trading as high as seven earlier.
    Howard Harlow, analyst at Whale Securities Corp, said
Anacomp's earnings for fiscal 1987 ending September 31 could be
doubled to 80 cts a share from the 40 cts a share he had
forecast before Anacomp agreed to buy DatagraphiX, a
micrographics firm, from General Dynamics Corp <GD>.
    "The company can earn 80 cts a share in fiscal 1987, maybe
as much as a dlr a share, because of DatagraphiX," Harlow said.
"Most of the benefit will be in the fourth qtr because it will
integrate the company in the second half."
    Anacomp's earnings will be less if it has problems
integrating DatagraphiX, Harlow said.
    A spokesman at Anacomp said the company expects to complete
its deal for DatagraphiX later this month. She would not say
how much it will pay for DatagraphiX, but noted that
DatagraphiX contributed 10 mln dlrs in earnings to General
Dynamics on revenues of 239 mln dlrs in 1986.
    Harlow said a fellow analyst at Whale Securities estimates
that Anacomp will pay between 100 mln dlrs to 150 mln dlrs for
DatagraphiX. "The estimates on the street narrow it down to
between 110 mln dlrs and 130 mln dlrs," Harlow added.
    Anacomp reported net of 2.8 mln dlrs or nine cts a share in
its first qtr ended December 31, up from 301,000 dlrs or one ct
a share.
    In Anacomp's fiscal 1986 it earned 4,073,000 dlrs or 13 cts
a share.
    Whale Securities recommends buying the stock, Harlow said.


.I 16529
.C
acq
.W
CORRECTED - LIFETIME<LFT> TO BUY NIPPON LACE SAHRES.
    NEW YORK, March 3 - Lifetime Corp said it agreed to buy
five mln shares or 16 pct of <Nippon Lace Co Ltd> for 3.28 dlrs
a share, or 16.5 mln dlrs.
    It said it plans to enter the health care business in
Japan.
    In addition, it said <Koba Electronics Co Ltd>, an
affiliate of Nippon, will buy four mln unissued shares, or a 12
pct stake, of Lifetime for 20 mln dlrs or five dlrs a share. -
Corrects to show Nippon's affiliate Koba buying stake in
Lifetime.
   


.I 16530
.C
trade
.W
U.K. EXPORTS BODY GETS NEW EXECUTIVE DIRECTOR.
    London, March 3 - Export Credits Guarantee Department has
named Malcolm Stephens, director of export finance at Barclay's
Bank Plc and a former career civil servant at ECGD for 17
years, to the post of executive director, a department
spokesman said.
    Stephens replaces Jack Gill, who is retiring early aged 57.
    A drop in the ECGD's business volume and a rise in its debt
to the Exchequer have led to criticism in Parliament in recent
years.
    Stephens said the fall in business volume was a top
convern, adding that the department may have to compete more
aggressively with private insurance firms providing similar
services.
    The department's annual report for the year ended March 31,
1986, showed exports insured by the department fell to 15.7
billion stg from 17.4 billion the year before, while its debt
to the Exchequer almost doubled to 756 mln stg.
    Stephens said he had no specific list of changes. But among
his chief concerns was the weakened condition of lesser
developed countries and their ability to pay for their imports.
    The agency will have to review its policies on insuring
export credits to lesser credits on a country by country basis,
he said. "Large lump political risk insurance is the sort of
thing we want to take a look at."
    "You have to try to look forward to see if you are simply in
a peak and trough situation or it is a more long term thing,"
Stephens said, in response to a qustion about whether ECGD will
strike more countries from its list of political risk insurance
recipients.
    He noted that certain countries have already been removed
from the list.


.I 16531
.C
veg-oil
.W
OILS/FATS STOCKS SEEN FALLING SHARPLY IN 1986/87.
    HAMBURG, March 3 - Visible stocks of 17 oils and fats are
probably peaking now and are likely to fall sharply by October
1 this year, the Oil World newsletter said.
    Oil World forecast that stocks of oils and fats may be cut
to only 9.8 mln tonnes at the end of this season, compared with
10.6 mln a year earlier.
    Its survey covered  13 oils -- soy, cotton, groundnut, sun,
rape, sesame, corn, olive, coconut, palmkernel, palm, lin and
castor  -- and four animal oils and fats -- butter, fish oil,
lard and tallow/greases.
    Oil World's analysis predicted only a slight production
increase of 0.5 mln tonnes in the year to end-September 1987,
compared with increases of 3.6 mln and 4.0 mln tonnes in the
previous two seasons.
    It said world consumption was continuing to rise. Unusually
low prices prevailing since early 1986 had stimulated demand
for both food and non-food purposes, it said.
    World consumption  could increase by a record 2.8 mln
tonnes to 71.8 mln tonnes this season and would be even higher
if the Indian government did not artificially curb domestic
demand.
    Oil World said it did not expect the European Community
(EC) to introduce a vegetable oils tax, but if such a tax were
introduced it would have a negative impact on EC consumption.


.I 16532
.C
coffee
.W
COLOMBIA TRADERS SAY NEW COFFEE STRATEGY VITAL.
    BOGOTA, March 3 - Coffee producing countries must quickly
map out a fresh common strategy following the failure of the
International Coffee Organization, ICO, to reach agreement on
export quotas, Gilberto Arango, president of Colombia's private
coffee exporters' association, said.
    Arango told Reuters that the most intelligent thing now
would be to seek a unifying stand from producers, including
Brazil, in order to map out a strategy to defend prices.
    An ICO special meeting ended last night in London with
exporting and consuming nations failing to agree on a
resumption of export quotas, suspended one year ago after
prices soared following a prolonged drought in Brazil.
    Arango said there would be no imminent catastrophe but
predicted that over the short term prices would undoubtedly
plummet.
    However, he said the market should also take into account
evident factors such as Brazil's low stocks and the sale of the
near totality of the Central American crop.
    Trade sources said Colombia's coffee was today quoted at
1.14 dlrs a lb in New York, its second lowest price in the past
10 years.
    Cardenas said these countries apparently fail to understand
the true impact of such a failure for coffee producing nations
as well as for industrialized countries.
    It is difficult to believe that while efforts are made to
solve the problem of the developing world's external debt,
decisions are being taken which cut earnings used for repaying
those debts, he said.
    "In Colombia's case, we watch with consternation that,
while we try to effectively combat drug trafficking, countries
which support us in this fight seek to cut our jugular vein,"
Cardenas said.


.I 16533
.C
acq
.W
TENDER LOVING <TLCI>, STAFF <STAF> EXTEND PACT.
    LAKE SUCCESS, N.Y. March 3 - Tender Loving Care Health Care
Services Inc said it and Staff Buildiers Inc have extended the
term of their merger agreement until May 31.
    Tender Loving Care also said <Norrell Corp> agreed not to
acquire any additional Staff Builders shares until September
30, adding Norrell was paid 750,000 dlrs for the standstill
arrangement. 
    Tender Loving Care said it agreed to buy the 610,000 Staff
Builders common held by Norrell, about 19.1 pct of those
outstanding, for 6,950,000 dlrs immediately prior to the
consummation of the merger.
    Tender Loving Care said the extended merger agreement
continues to provide for the exchange of 1.6 of its shares for
each Staff Builders share outstanding.
    As announced February 26, the Staff Builders shareholders
meeting to vote on the merger, originally convened and
adjourned December 23, will be reconvened on April 22.
    Tender Loving Care said its payment to Norrell will include
1,950,000 dlrs in cash and five mln dlrs of a new series of
eight pct Tender Loving Care convertible preferred.
    Tender Loving Care said it and Staff Builders have filed a
revised registration and proxy statement with the Securities
and Exchange Commission. Upon clearance of the revised proxy
statement by the commission and its distribution to Staff
Builders' shareholders, that company's management will continue
to solicit proxies for approval of the merger.
    Tender Loving Care said it will have the power to vote
about 15.8 pct of Staff Builders' shares at the adjourned
meeting with a spokesman explaining that this represents the
proxies held by Norrell, which started buying the stock after
the record date for the meeting.
    In addition, Staff Builders officers and directors own
about 13.8 pct of its stock and have agreed to vote in favor of
the merger.
    Accordingly, the vote of an additional 37.1 pct of the
outstanding shares will be required to approve the merger,
Tender Loving Care said.


.I 16535
.C
grain;meal-feed;corn;soy-meal;
.W
SOVIET SOYMEAL IMPORTS SEEN RISING IN 1987.
    HAMBURG, March 3 - Soviet imports of soymeal may reach or
exceed one mln tonnes between January and September this year,
the Oil World newsletter said.
    Oil World said it was likely the Soviet Union would reduce
soybean imports and step up significantly its imports of meal.
    At least 500,000 tonnes of soymeal may be shipped from the
European Community and South America in the January/March
quarter, with additional large quantities likely to be imported
in the April and July quarters from Argentina and Brazil, it
said. No figures were given for imports in the corresponding
periods of 1986.
    The change made sense in view of the recent purchases of
probably 250,000 tonnes of West European and Polish rapeseed
and large scale butter imports that were expected from March
onward, it said.
    Oil World said substantial losses of Soviet winter grain
area due to recent severe frosts were probably behind the
recent pick-up in Soviet purchases of U.S. Corn.
    It noted that an additional one mln tonnes of U.S. Corn had
been bought recently by the Soviet Union.


.I 16536
.C
sugar
.W
COLOMBIA TO SELL SUGAR, LONDON TRADERS SAY.
    LONDON, March 3 - Colombia is holding a snap selling tender
tonight for one cargo of world market raw sugar, traders said.
    The sugar is for March 15/April 15 shipment and bids are
being sought based on the New York May delivery futures
contract, they added.


.I 16537
.C
acq
.W
VARIAN <VAR> IN TALKS WITH PHILIPS ELECTRONICS.
    PALO ALTO, Calif., March 3 - Varian Associates Inc said it
is holding discussions with Philips Electronics regarding the
purchase of Philips' broadcast transmission unit in the United
Kingdom, Pye TVT Limited.
    Pye TVT designs and manufactures broadcast transmission
equimpment, specializing in television frequencies.


.I 16540
.C
acq
.W
BUTLER <BTLR> TO SELL PART OF UNIT.
    KANSAS CITY, Mo., March 3 - Butler Manufacturing Co said it
agreed in principal to sell part of its controls division to
Enercon Data Corp of Minneapolis.
    Terms of the sale were not disclosed.
    The transaction, expected to be closed in March, involves
the controls division's energy management and power line
carrier product lines.
    Butler said costs associated with the sale were included in
its restructuring charge taken in last year's fourth quarter,
and will have no effect on its 1987 earnings.


.I 16545
.C
earn
.W
FERTILITY AND GENETICS RESEARCH <BABY> 1ST QTR.
    CHICAGO, March 3 - Periods ended December 31
    Shr loss 10 cts vs loss seven cts
    Net loss 316,289 vs loss 189,140
    Revs 61,762 vs 8,934


.I 16546
.C
trade
.W
ROSTENKOWSKI RELUCTANT TO BACK TAX HIKE.
    WASHINGTON, March 3 - House Ways and Means Committee
Chairman Dan Rostenkowski said he would be reluctant to back
the tax increase if it did not have President Reagan's support.
    He told a National Press Club luncheon there would be a
number of tax proposals that could be debated if Reagan sought
a tax increase to help balance the budget.
    However, he said he would prefer to leave the tax rates
enacted in last year's tax reform bill unchanged.
    There have been calls in Congress to hold the rates at the
1987 level rather than allow them to fall next year.
    Reagan proposed 22 billion dlrs in revenue as part of his
1988 budget proposal, but it did not include general tax
increases.
    On trade issues, Rostenkowski said he did not expect the
major trade bill this year would single out any U.S. industry
for special protection.
    "To go after individual items in a trade bill is suicide,"
he said.
    This apparently ruled out congressional approval of another
textile trade bill to limit quotas on textile imports, as was
proposed again this year.


.I 16548
.C
acq
.W
<MAGELLAN CORP> SETS MERGER WITH BALZAC.
    DENVER, March 3 - Magellan Corp said it has entered into a
letter of intent to acquire Balzac Investments Inc in a
transaction that will result in former Balzac shareholders
owning about 83 pct of the combined company.
    The company said on completion of the merger, the combined
company wopuld be known as Power-Cell Inc and be engaged in the
development of Balzac technology related to its Quick Charge
product for charging auto batteries.
    The transaction is subject to approval by shareholders of
both companies.


.I 16549
.C
earn
.W
UNITED COS FINANCIAL CORP <UNCF> 4TH QTR NET.
    BATON ROUGE, La., March 3 -
    Shr 68 cts vs 78 cts
    Net 2,432,179 vs 2,236,471
    Revs 50.8 mln vs 35.1 mln
    Avg shrs 3,600,000 vs 2,850,000
    Year
    Shr 2.82 dlrs vs 3.35 dlrs
    Net 10.0 mln vs 9,554,658
    Revs 177.5 mln vs 138.1 mln
    Avg shrs 3,567,123 vs 2,850,000


.I 16554
.C
earn
.W
BRISTOL-MYERS CO <BMY> SETS QUARTERLY.
    NEW YORK, March 3 -
    Qtly div 70 cts vs 70 cts prior
    Pay May One
    Record April Three


.I 16558
.C
acq
.W
AMERICAN AIRCRAFT CORP BUYS PRIVATE FIRM.
    SAN FRANCISCO, March 3 - <American Aircraft Corp> said it
has acquired a 51 pct interest in privately-held <Hunter
Helicopter of Nevada, Inc>.
    The purchase was made for an undisclosed amount of American
Aircraft stock, the company said.
    It said the acquisition will increase shareholder equity in
American Aircraft to 45 cts per share from 18 cts per share.
    Hunter Helicopter builds two-passenger helicopters that
retail for about 50,000 dlrs.


.I 16559
.C
earn
.W
AID CORP <AIDC> RAISES QUARTERLY DIVIDEND.
    DES MOINES, Iowa, March 3 -
    Qtly div nine cts vs eight cts in prior qtr
    Payable March 31
    Record March 13


.I 16563
.C
acq
.W
INTERNATIONAL TECHNOLOGY <ITX> MAKES ACQUISITION.
    TORRANCE, Calif., March 3 - International Technology Corp
said it has purchased <Western Emergency Services Inc> in a
pooling-of-interests transaction.
    International Technology, a hazardous materials management
company, said it purchased Western Emergency, an environmental
services firm, to offer a broader range of environmental
services to the Gulf Coast area.


.I 16564
.C
earn
.W
<D.H. HOWDEN AND CO LTD> INCREASES DIVIDEND.
    LONDON, Ontario, March 3 -
    Semi-annual 30 cts vs 25 cts prior
    Pay June 30
    Record June 15


.I 16565
.C
earn
.W
<CO-STEEL INC> 4TH QTR NET.
    TORONTO, March 3 -
    Oper shr 25 cts vs 25 cts
    Oper net 6,322,000 vs 4,660,000
    Revs 189.1 mln vs 174.7 mln
    Avg shrs 23.5 mn vs 17.1 mln
    Year
    Oper shr 1.04 dlrs vs 14 cts
    Oper net 21,929,000 vs 3,629,000
    Revs 760.2 mln vs 674.8 mln
    Avg shrs 20.5 mln vs 17.1 mln
    Note: Qtr shr and net exclude tax gain of 4,573,000 dlrs or
17 cts share, versus gain of 17,259,000 dlrs or 1.02 dlrs share
    Year shr and net exclude tax gain of 15,992,000 dlrs or 78
cts share, versus gain of 18,042,000 dlrs or 1.06 dlrs share


.I 16566
.C
coffee
.W
PERU COFFEE CROP UNAFFECTED BY RAINS.
    LIMA, March 3 - Recent heavy rains have not affected the
Peru coffee crop and producers are looking forward to a record
harvest, the president of one of Peru's four coffee cooperative
groups said.
    Justo Marin Ludena, president of the Cafe Peru group of
cooperatives which accounts for about 20 pct of Peru's exports,
told Reuters a harvest of up to 1,800,000 quintales (46 kilos)
was expected this year. He said Peru exported 1,616,101
quintales in the year to September 1986.
    A spokesman for the Villa Rica cooperative said flood
waters last month had not reached coffee plantations, and the
crop was unaffected.
    Floods in early February caused extensive damage in Villa
Rica, whose coffee cooperative exported 59,960 quintales last
year, according to the state-controlled coffee organisation.
    Marin said the rains would only affect the coffee crop if
they continued through to next month, when harvesting starts.
    He said Peruvian producers were hoping for an increase this
year in the 1.3 pct export quota, about 913,000 quintales,
assigned to them by the International Coffee Organisation, ICO.
    He said Peru exported 1,381,009 quintales to ICO members
last year with a value of around 230 mln dlrs, and another
235,092 quintales, valued at around 35 mln dlrs, to non-ICO
members.


.I 16571
.C
earn
.W
WILLCOX AND GIBBS INC <WG> 4TH QTR NET.
    NEW YORK, March 3 -
    Oper shr 42 cts vs 41 cts
    Oper net 2,322,000 vs 1,785,000
    Sales 72.3 mln vs 59.8 mln
    Avg shrs 5,527,000 vs 4,355,000
    Year
    Oper shr 1.48 dlrs vs 1.40 dlrs
    Oper net 7,637,000 vs 5,973,000
    Sales 261.7 mln vs 224.7 mln
    Avg shrs 5,165,000 vs 4,277,000
    NOTE: 1985 operating net excludes gains of 1,523,000 dlrs,
or 35 cts a share, in quarter and 5,090,000 dlrs, or 1.19 dlrs
a share, in year from tax carryforwards


.I 16576
.C
ship;wheat;grain;
.W
FRENCH EXPORTERS SEE HIGHER WHEAT SALES TO CHINA.
    PARIS, March 3 - French exporters estimated that around
600,000 tonnes of French soft wheat has been sold to China for
delivery in the 1986/87 (July/June) year.
    Around 300,000 tonnes were exported to China between July
1986 and February this year.
    Another 100,000 to 150,000 tonnes will be shipped during
this month and around the same amount in April, they said.
    France sold around 250,000 tonnes of soft wheat to China in
1985/86, according to customs figures.
    However, certain exporters fear China may renounce part of
its contract with France after being offered one mln tonnes of
U.S. soft wheat under the Export Enhancement Program in January
and making some purchases under the initiative.


.I 16577
.C
earn
.W
GE <GE> PROFIT OUTLOOK AIDED BY ENGINE ORDER.
    By Cal Mankowski, Reuters
    NEW YORK, March 3 - One of General Electric Co's biggest
businesses, aircraft engines, will ride a wave of increasing
profits into 1991 because of a new contract worth 650 mln dlrs,
Wall Street analysts said.
    Previously, it was expected the business would peak and
decline at some point in the next five years. The improved
outlook results from AMR Corp's <AMR> decision to order 40 new
planes powered by CF6-80C2 GE engines.
    "Creative financial footwork helped GE get the order," said
Nicholas Heymann, analyst at Drexel Burnham Lambert Inc.
    AMR declined to go into detail on financing arrangements
for its order of 15 Boeing Co <BA> and 25 <Airbus Industrie>
twinjet long distance aircraft.
    But AMR said it was using "rent-a-plane leases" that allow
it to operate the aircraft without adding to its debt
structure. AMR also has the right to decline delivery of the
planes or return them on short notice. The arrangement protects
AMR in the case of an unexpected development such as a severe
downturn in the economy.
    From GE's point of view the package looks like a good deal
for several reasons, Heymann said.
    GE will be able to record revenue as a sale at the time of
delivery, Heymann noted.
    And if for some reason AMR decides not to take the planes
GE's financial arm, General Electric Financial Services Inc,
would have little trouble rounding up another airline that
wanted the fuel efficient planes. On the whole, the deal
appears to pose little risk for GE, Heymann said.
    GE's stock declined 1/4 to 103-1/2 on 625,000 shares by
midafternoon. H.P. Smith, analyst at Smith Barney, Harris Upham
and Co said for a 40 billion dlr (revenue) company "no one
order will have much of an effect on the stock."
    Russell Leavitt, analyst at Salomon Brothers Inc, said the
order "will help to maintain a good level of production and
profitability in the aircraft engine business" for GE.
    Heymann sees operating profits from GE's jet engine
business rising from 870 mln dlrs last year to 1.3 billion dlrs
by 1991.
    Revenue from jet engines was close to six billion dlrs last
year, with well over half of the business in the military
sector, according to analysts' estimates.
    The rosy outlook for GE's jet engine business coincides
with an upbeat performance in other segments.
    Heymann expects GE to earn 1.39 dlrs per share in the first
quarter of 1987. Saying many will be suprised by the results,
he believes GE has shown through its acquisition of RCA Corp
that it has a "unique ability" to buy a major business and
reshape it, pruning some parts and recombining parts with other
elements of its 14 business areas.
    Smith sees GE earning 1.35 dlrs per share in the current
quarter. He credits good results at RCA, in turn aided by the
NBC broadcasting operation, and lower interest rates.
    Leavitt sees 1.40 dlrs for the current quarter, in part
crediting "significant benefits from the RCA acquisition."


.I 16578
.C
earn
.W
BUCKHORN INC <BKN> 4TH QTR LOSS.
    CINCINNATI, Ohio, March 3 -
    Oper shr loss 1.24 dlrs vs profit 19 cts
    Oper net loss 1,965,000 vs profit 646,000
    Revs 10.5 mln vs 11.6 mln
    Avg shrs 1,741,000 vs 3,581,000
    12 mths
    Oper shr loss 1.55 dlrs vs profit 42 cts
    Oper net loss vs profit 2,051,000 vs 1,492,000
    Revs 42.9 mln vs 45.5 mln
    Avg shrs 1,816,000 vs 3,581,000
    NOTE: prior qtr excludes loss 229,000, or seven cts per
share, for discontinued operations.
    1986 qtr excludes 159,000 extraodinary loss.
    Excludes loss 293,000, or 16 cts per share, for 1986 and
gain 651,000, or 18 cts per share, for 1985 for discontinued
operations.
    Excludes loss 256,000 for 1986 net for extraordinary item.


.I 16580
.C
earn
.W
BUCKHORN INC <BKN> SEES HIGHER PROFITS IN 1987.
    CINCINNATI, Ohio, March 3 - Buckhorn Inc said itd nine
million dlr backlog for orders and a less expensive operating
environment should yield significant levels of operating
profits for 1987.
    Buckhorn, a manufacturer of reusable plastic shipping and
storage containers, recorded 2,051,000, or 1.55 dlrs per share,
operating net loss for 1986.
    Buckhorn said the year's results included a 4,250,000
non-recurring expense incurred to complete major restructuring
efforts and to defend against the hostile tender offer from
Ropak Corporation.
   


.I 16583
.C
alum
.W
ALCAN, BERTONE MAKE ALUMINUM STRUCTURE CAR.
    MONTREAL, March 3 - Alcan Aluminium Ltd said it joined with
Carrozzeria Bertone S.P.A. to exhibit Alcan's technology in
aluminum structured vehicles at Geneva's international auto
salon.
    Alcan said it and Bertone have built several Bertone X1/9
sports cars with structures of adhesively bonded sheet
aluminum. It said the bodies were made on presses used for
Bertone's steel-structured sports cars.
    Alcan said two of the cars are currently being tested in
Britain by the Motor Industry Research Association.
     Alcan said it has developed and tested the aluminum
structure technology so that it is suitable for modern auto
making methods and plants.
    Alcan said the technology, which reduces the weight of a
car's basic structure by up to 50 pct, can improve handling and
performance and reduce fuel consumption for any size car. It
said the structures also provide long life without the need for
rust protection.
    The structure provides the same stiffness and safety as
present materials, while continuously bonded seams allow a 65
pct reduction in spot welds, Alcan said.


.I 16584
.C
earn
.W
CCR VIDEO 1ST QTR NOV 30 NET.
    LOS ANGELES, March 3 -
    Shr 2-1/5 cts vs nil
    Net 156,726 vs 11,989
    Sales 1,157,883 vs 890,138



.I 16585
.C
earn
.W
DEL E. WEBB INVESTMENT <DWPA> 4TH QTR NET.
    PHOENIX, Ariz., March 3 -
    Shr eight cts vs 16 cts
    Net 188,000 vs 354,000
    Revs 538,000 vs 594,000
    Year
    Shr 31 cts vs 28 cts
    Net 692,000 vs 617,000
    Revs 2,640,000 vs 906,000
    (Del E. Webb Investment Properties Inc)


.I 16588
.C
grain;corn;
.W
******U.S. EXPORTERS REPORT 104,000 TONNES OF  CORN SOLD TO UNKNOWN DESTINATIONS FOR 1986/87.
Blah blah blah.

.I 16589
.C
earn
.W
F.W. WOOLWORTH'S <Z> 1986 PROFITS RISE 21 PCT.
    By Gail Appleson,
    NEW YORK, March 3 - The specialty retailing area continues
to pay off for F.W. Woolworth Co, once known only as a five and
dime store chain, which said its 1986 income rose 21 pct.
    It was the fourth consecutive year of profit increases for
the New York-based retailer which was founded over 100 years
ago.
    Woolworth's 1986 income rose to 214 mln dlrs or 3.25 dlrs
per share compared with 1985's profit of 177 mln or 2.75 dlrs
per share. Revenues for the year rose to 6.50 billion compared
with the prior year's 5.96 billion.
    For the fourth quarter, the company reported profits rose
10 pct to 117 mln dlrs or 1.78 dlrs per share compared with
1985 fourth quarter results of 106 mln or 1.64 dlrs per share.
Revenues rose to 2.02 billion from 1.85 billion dlrs.
    Roy Garofalo, Woolworth vice president, told Reuters that
income generated by the company's specialty store operations
accounted for 52 pct of the parent company's 1986 profits.
    He said the company now has 4,700 specialty stores
operating under 30 different names. Woolworth plans to open 650
more specialty stores in 1987. At this time last year, it
operated 4,100 specialty stores, Garofalo said.
    Garofalo said the largest specialty chain operated by
Woolworth is Kinney Shoe Stores, followed by the Richman
apparel unit. Among other units are Little Folk Shop, a chain
of discount children's apparel stores; The Rx Place, a discount
drug, health and beauty aid operation; and Face Fantasies,
which sells cosmetics. There are currently about 1,700
Woolworth general merchandise stores operating worldwide, of
which 1,200 are in the United States.
    Harold Sells, chairman and chief executive of Woolworth,
said in a statement, "These results are especially gratifying as
they are an improvement over last year's record earnings."
    Sells that it was the fourth successive year earnings in
each quarter improved over the corresponding year-earlier
period.
    Woolworth's variety store operations were hard hit in the
1970's and early 1980's by the quickly growing discount store
industry. In an attempt to compete in the 1970's, Woolworth
opened a discount general store chain, Woolco, and J. Brannam,
a discount apparel chain. Both were failures in the United
States, although Woolco still operates in Canada.
    In 1985, however, Woolworth changed its strategy and
announced that it would operate specialty stores. At that time,
the company said it would create 14 new groups of such stores.
Specialty stores generally have higher sales per square foot
than general merchandise stores.
   


.I 16591
.C
earn
.W
ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS.
    DENVER, COLO., March 3 -
    Shr loss 72 cts vs loss 1.48 dlrs
    Net loss 4,466,006 vs loss 9,091,688
    Revs 608,181 vs 1,280,727
    Six Mths
    Shr loss 77 cts vs loss 1.51 dlrs
    Net loss 4,752,455 vs loss 9,265,457
    Revs 1,444,149 vs 2,791,188
   


.I 16592
.C
gnp
.W
CANADA ECONOMY EXPECTED TO GROW MODERATELY.
    By Russell Blinch, Reuters
    OTTAWA, March 3 - Canadian economic growth is expected to
slow further in 1987, but an improved the trade picture should
keep the country from recession, economists said.
    "The economy is ready for about a 2.0 pct rate of growth
over the course of 1987," said Carl Beigie, Chief Economist at
Dominion Securities Pitfield Ltd.
    Statistics Canada reported that gross domestic product,
grew 3.1 pct in 1986, the fourth year of continuous expansion,
but down from 1985's four pct.
    In the final quarter, GDP, in 1981 prices and at annualized
rates, rose a slight 0.2 pct after expanding 0.8 pct in the
third quarter.
    "Essentially it is a flat performance," said Warren Jestin,
deputy chief economist at the Bank of Nova Scotia.
    Economist Wendy Smith Cork of the brokerage Nesbitt Thomson
Bongard Inc said "it shows the economy is not moving along very
steadily, it's not a very promising number."
    "We weren't surprised, we expected to see one bad quarter
in Canada, but we don't think there will be a recession," she
added.
    The rise in GDP was below the 3.3 pct increase forecast by
Federal Finance Minister Michael Wilson in his budget last
month. He also projected the economy would expand  2.8 pct this
year.
    Many economists are less optimistic, predicting growth will
likely be in the 2.0 to 2.2 pct range.
    Statistics Canada also reported the country's trade
performance deteriorated sharply last year as the deficit in
the current account rose to a record 8.8 billion Canadian dlrs
from the previous year's shortfall of 584 mln dlrs.
    "The sharp increase in the deficit originated from
merchandise trade transactions where imports continued to
advance strongly whereas exports were virtually unchanged," the
federal agency said in a statement.
    The merchandise trade surplus was pared to 10.13 billion
dlrs in 1986 from 17.48 billion dlrs in 1985.
    But economist Cork said the expected upturn in the U.S.
economy will lead to increased demand for Canadian goods, and
help fuel the country's modest expansion. Nearly 80 pct of
Canada's exports are shipped to the U.S. each year.


.I 16593
.C
grain;corn;
.W
USDA REPORTS CORN SOLD SOLD TO UNKNOWN.
    WASHINGTON, March 3 - The U.S. Agriculture Department said
private U.S. exporters reported sales of 104,000 tonnes of corn
to unknown destinations for shipment in the 1986/87 marketing
year.
    The marketing year for corn began September 1, it said.


.I 16596
.C
acq
.W
AMERICAN AIRCRAFT BUYS INTO HELICOPTER BUILDER.
    SAN FRANCISCO, March 3 - <American Aircraft Corp> said it
has acquired a 51 pct interest in privately-owned <Hunter
Helicopter of Nevada Inc> for an undisclosed amount of stock.
    An American Aircraft official said the company has an
option to acquire the remaining 49 pct.
    Hunter Helicopter is in the business of building a two
passenger helicopter retailing for about 50,000 dlrs each which
is certified by the Federal Aviation Administration. The
helicopters will be manufactured in American Aircraft's Uvalde,
Texas, plant, it added.


.I 16597
.C
earn
.W
PREMIER INDUSTRIAL CORP <PRE> REGULAR DIVIDEND.
    CLEVELAND, March 3 -
    Qtly div 11 cts vs 11 cts in prior qtr
    Payable April 10
    Record March 23


.I 16600
.C
acq
.W
INTERNATIONAL TECHNOLOGY <ITX> BUYS FIRM.
    TORRANCE, Calif, March 3 - International Technology Corp
said it has purchased privately-held Western Emergency Service
Inc in a stock transaction.
    Western Emergency, an environmental services firm, has
annual sales of between one and two mln dlrs, compared to
International Technology's roughly 240-mln-dlr annual sales, a
spokesman for International Technology said.


.I 16603
.C
earn
.W
CONTINENTAL GENERAL INSURANCE <CGIC> 4TH QTR NET.
    OMAHA, Neb., March 3 - 
    Shr 20 cts vs 21 cts
    Net 783,564 vs 806,278
    Year
    Shr 89 cts vs 86 cts
    Net 3,443,392 vs 3,242,588
    Note:Full company name is Continental General Insurance Co
    Net includes profit from sale of securities of 155,410
dlrs, or four cts a share, and 192,896 dlrs, or five cts a
share, respectively, in 1986 qtr and year, and of 12,879 dlrs,
or nil per share, in 1985 qtr. Net for 1985 year includes loss
from sale of securities of 315,763 dlrs, or eight cts a share.


.I 16604
.C
earn
.W
MARGAUX CONTROLS INC <MARGX> 3RD QTR LOSS.
    FREMONT, Calif., March 3 -
    Shr loss 1.60 dlrs vs loss 45 cts
    Net loss 9,883,000 vs loss 2,744,000
    Revs 1,309,000 vs 3,289,000
    Nine mths
    Shr loss 2.29 dlrs vs loss 98 cts
    Net loss 14.1 mln vs loss 6,008,000
    Revs 4,577,000 vs 11.9 mln
    NOTE: Current periods include loss of 7.5 mln dlrs from
discontinued operations.


.I 16605
.C
earn
.W
MERCHANTS GROUP INC <MRCH> 4TH QTR OPER NET.
    BUFFALO, N.Y., March 3 -
    Oper shr profit 21 cts vs loss 2.13 dlrs
    Oper net profit 456,000 vs loss 2,454,000
    Revs 16.3 mln vs 13.1 mln
    Year
    Oper shr 1.39 dlrs vs loss 2.41 dlrs
    Oper net profit 1,815,000 vs loss 2,779,000
    Revs 58.0 mln vs 43.8 mln
    NOTE: 1986 4th qtr and yr oper net exclude realized
investment gains of 279,000 dlrs and 1,013,000 dlrs,
respectively, which includes provision for income taxes of
238,000 dlrs and 863,000 dlrs for the periods, respectively.
    1986 4th qtr and yr oper net exclude 606,000 dlrs or 38 cts
per share and 2,323,000 dlrs or 1.86 dlrs per share, for net
operating loss carryovers.
    1985 4th qtr and yr oper net exclude realized investment
gains of 439,000 dlrs and 666,000 dlrs respectively.


.I 16607
.C
earn
.W
CONTINENTAL GENERAL <CGIC> SETS STOCK DIVIDEND.
    OMAHA, Neb., March 3 - Continental General Insurance Co
said its board of directors declared a 10 pct stock dividend on
common shares, payable April one to shareholders of record
March 16.
    The company yesterday paid a quarterly cash dividend of
2-1/2 cts a share, unchanged from the previous quarter, to
shareholders of record February 20.


.I 16608
.C
earn
.W
MARGAUX CONTROLS INC <MARGX> 3RD QTR DEC 28 LOSS.
    FREMONT, Calif., March 3 -
    Shr loss 1.60 dlrs vs loss 45 cts
    Net loss 9,883,000 vs loss 2,744,000
    Revs 1,309,000 vs 3,289,000
    Nine mths
    Shr loss 2.29 dlrs vs loss 98 cts
    Net loss 14.1 mln vs loss 6,008,000
    Revs 4,577,000 vs 11.9 mln
    Note: 1986 net losses inlcude 7,507,000-dlr charge from
discontinued operations of building management system sold to
Cetek System Inc on Jan 30, 1987.


.I 16611
.C
acq
.W
HARRIS CUTS STAKE IN BELL INDUSTRIES <BI>.
    WASHINGTON, March 3 - Harris Associates L.P., a Chicago
investment advisory limited partnership, said it lowered its
stake in Bell Industries Inc to 1,015,800 shares, or 18.7 pct
of the total outstanding, from 1,083,800 shares, or 20.0 pct.
    In a filing with the Securities and Exchange Commission,
Harris said it sold 68,000 Bell common shares between Dec 18
and Feb 20 at prices ranging from 20.25 to 25.24 dlrs each.
    Harris said its dealings in Bell stock are on behalf of its
advisory clients.


.I 16612
.C
acq
.W
GOODYEAR <GT> CHAIRMAN CRITICIZES CORPORATE RAIDS.
    MIAMI, March 3 - The chairman of Goodyear Tire and Rubber
Co, a concern that survived a recent hostile takeover bid,
charged that "terrorists in three-piece suits" are undermining
the nation's industrial base.
In a speech to a meeting of south Florida business executives,
Goodyear Chairman Robert Mercer lashed out at corporate raiders
and takeover specialists, accusing them of causing serious harm
to the companies they target.
  "Their interest is not in preserving and strengthening
America's industrial and providing jobs," he said. "Their
product is simply deals, and that is not a product which a
country ... can base a future on."
    Last year, Mercer fought off a takeover attempt by British
industrialist Sir James Goldsmith.
    But Goodyear's independence was preserved at a high price,
Mercer said.
    The company bought back Goldsmith's stock for 620 mln dlrs,
giving him a 93 mln dlr profit. Goodyear also paid him 37 mln
dlrs for expenses and bought about 41 mln other shares for over
two billion dlrs.
    In an effort to trim its new debt, Goodyear closed down
three plants Mercer believes otherwise could have been saved,
sold its motor wheel and aerospace units and reduced its
payroll by 10 pct, he said.
    Mercer, who plans to testify tomorrow at a Senate hearing
on a proposed bill to control corporate raiders, said hostile
takeovers have also hurt workers.


.I 16613
.C
earn
.W
<TIVERTON PETROLEUMS LTD> NINE MTHS DEC 31 NET.
    CALGARY, Alberta, March 3 -
    Shr six cts vs five cts
    Net 459,131 vs 289,433
    Revs 1,808,832 vs 1,680,240


.I 16615
.C
wheat;grain;
.W
MORE INTERMEDIATE U.S. WHEAT CREDITS FOR MOROCCO.
    WASHINGTON, March 3 - The Commodity Credit Corporation has
approved an additional 45.0 mln dlrs under its interemdiate
export credit guarantee program, GSM-103, for sales of U.S.
wheat to Morocco, the U.S. Agriculture Department said.
    The action increases Morocco's cumulative fiscal year 1987
program for wheat under GSM-103 to 75.0 mln dlrs.
    The credit terms extended for exports under the program
must be in excess of three years but no more than seven years
to eligible for credit coverage. All sales under this line must
be registered and exported by September 30, 1987.
    The department also said the guarantee line for sales of
U.S. wheat under the Export Credit Guarantee Program, GSM-102,
has been decreased 45.0 mln dlrs to 60.0 mln.


.I 16618
.C
earn
.W
MCA INC <MCA> SETS REGULAR QTRLY PAYOUT.
    UNIVERSAL CITY, Calif., March 3 -
    Qtrly div 17 cts vs 17 cts prior
    Pay April 13
    Record March 25


.I 16619
.C
grain
.W
SOVIET GRAINS SEEN ENTERING SPRING ON SHAKY NOTE.
    by Maggie McNeil, Reuters
    WASHINGTON, March 3 - Soviet winter grains could be off to
a faulty start this spring after enduring an usually dry fall
and cold winter, weather and crop analysts said.
    Prospects for another near-record grain harvest in the
Soviet Union appear dim at this point, but it is premature to
forecast any major crop problems, analysts said.
    But the situation bears careful watching over the next six
weeks and will ultimately impact the Soviet grain supply and
future buying plans, analysts of the Soviet Union said.
    "From a weather standpoint, you can say with certainty that
the Soviets are not getting off to a good start and will have a
lower crop (than last year)," Gail Martell, chief meteorologist
for E.F. Hutton said.
    The next six weeks in the USSR's grain growing areas will
be the crucial period that will determine the final outcome of
the winter crops, Martell and other analysts said.
    "Where the crop is really made or broken is still ahead of
us," an Agriculture Department authority on the USSR said.
    The Soviet Union recently reported that nine mln hectares
of winter grain will have to be reseeded due to winterkill.
This would be equal to about 25 pct of the total winter crop
and would be the second highest winterkill in ten years, the
USDA analyst said.
    With a timely spring, Soviet farmers would probably be able
to reseed the damaged acreage with spring crops, but analysts
noted that spring crops normally yield lower than winter crops
-- sometimes as much as 30-35 pct lower.
    Normally winterkill is caused by inadequate snowcover
combined with cold temperatures. This winter, however,
snowcover in Soviet grain areas has generally been excellent,
so the bulk of winterkill, analysts speculate, likely has been
due to a very dry fall and subsequent poor crop germination.
    "Fall dryness may be a problem. There's a good correlation
between mediocre crops and fall dryness," Martell said.
    Precipitation last fall was as little as 25 pct of normal
in southern and northern Ukraine, and below normal over the
entire winter crop area, she said.
    Recent cold temperatures in grain areas in which the
snowcover has been gradually melting could also have caused 
problems of ice-crusting and winterkill, Jim Candor, senior
forecaster for Accu Weather, said.
    Livestock feed needs have probably increased because of the
fall and winter, analysts said. The dry fall damaged pastures,
the cold winter raised feed demands and a late spring would
require longer off-pasture feeding, they said.
    "The Soviets are not in a desperate situation ... they
don't have to buy (grains) now," a USDA official said.
    But if the Soviets are worried about their winter crops and
if they feel that last year's huge crop of 210 mln tonnes was a
one-time fluke brought on by perfect conditions, more Soviet
buying might occur to insure crop supplies, he said.
    Bad weather during the next six weeks could push the
Soviets back into the market, weather analysts said.
    "A lot of winterkill could occur during the next month and
a half," Martell said.


.I 16620
.C
alum
.W
ALCAN (AL) TO CLOSE WEST GERMAN SMELTER.
    MONTREAL, March 3 - (Alcan Aluminium Ltd) is closing its
aluminum smelter in Ludwigshafen, West Germany this June due to
high operating costs, an Alcan spokesman said.
    The smelter, near Frankfurt, had annual capacity of about
44,000 metric tons but was operating at about half that in
January, spokesman Fernand Leclerc said.
    Leclerc said Alcan decided it would cost too much to
modernize the plant.
    He said there is a possibility the company will sell the
smelter, which currently employs 320 people, before its
scheduled closing.             


.I 16621
.C
earn
.W
ROYAL RESOURCES CORP <RRCO> 2ND QTR DEC 31 LOSS.
    DENVER, March 3 -
    Shr loss 72 cts vs loss 1.48 dlrs
    Net loss 4,466,006 vs loss 9,091,688
    Revs 608,181 vs 1,280,727
    Avg shrs 6,194,000 vs 6,155,461
    First half
    Shr loss 77 cts vs loss 1.51 dlrs
    Net loss 4,752,455 vs loss 9,265,457
    Revs 1,444,149 vs 2,791,188
    Avg shrs 6,174,731 vs 6,155,461
    NOTE: Losses include charges of 4.0 mln dlrs in both 1986
periods vs 14.4 mln dlrs in both 1985 periods for write-down of
oil and gas properties


.I 16623
.C
acq
.W
HANSON TRUST <HAN> COMPLETES KAISER PURCHASE.
    NEW YORK, March 3 - Hanson Trust PLC said Kaiser Cement
shareholders today approved the previously announced merger
agreement making Kaiser Cement an indirect wholly owned unit of
Hanson Trust.
    Hanson said that promptly following the filing of the
certificate of merger Kaiser Cement common shares will be
delisted from the New York Stock Exchange.
    Hanson also said, in accordance with the merger agreement
Kasier Cement also has redeemed all outstanding shares of its
1.375 dlr convertible preferance stocks and its outstanding 9
pct convertible debentures due 2005.
    The acquisitions total purchase price (including cost of
financing the above-mentioned redemptions) will be about 250
mln dlrs, Hanson said.


.I 16626
.C
crude
.W
OIL PRICES RISE ON SAUDI EFFORT.
    BY TED D'AFFLISIO, REUTERS
    NEW YORK, MARCH 3 - Crude oil prices rallied today, moving
over 17.00 dlrs a barrel because of Saudi Arabia's determined
effort to support prices, analysts said.
    "The Saudis and other OPEC nations are jawboning the market,
hoping to restore confidence and prices and to do this without
another meeting," said Sanford Margoshes, oil analyst with
Shearson Lehman Brothers Inc.
    "But OPEC is not out of the woods yet by a longshot due to
seasonal declines in demand and some cheating," he added.
    Oil industry analysts said Saudi Arabia has led the attempt
to get other OPEC members to resist pressures to discount from
the official prices agreed to last december.
    The analysts said that to get others to hold the line,
Saudi Arabia pushed hard at the meeting of deputy oil ministers
of the Gulf Cooperation Council last weekend and at the
Cooperation Council oil ministers' meeting the previous week.
    The Saudis have also offered to support members having
difficulty in selling their oil, analysts said.
    "They are trying to make sure that no one discounts, and to
prevent that, it appears that Saudi Arabia or some other OPEC
member will allocate some of their oil sales to help members
that lose sales," Margoshes said.
    He added that the allocations would probably be in the form
of loans to be repaid when these nations resume sales.
    Analysts said this would be useful in keeping in line
nations like Qatar, which has had trouble selling oil. But it
is also likely that such assistance would be provided to
Nigeria which is under pressure to extend discounts.
    Analysts said that Saudi Arabia, with assistance from OPEC
president Rilwanu Lukman, was trying to avoid an emergency OPEC
meeting for fear that it would give the appearance that the
December pact is falling apart.
    Daniel McKinley, oil analyst with Smith Barney, Upham
Harris and Co said, "both physical and futures markets have been
oversold and it only took a small spark to bring on a short
covering rally."
    He believes an Iranian trade mission to Tokyo, which
refused discounts to Japanese buyers, brought Japanese refiners
into the market to cover their short positions.
    Oil traders said one japanese refiner came into the market
to but 10 cargoes of May Dubai, which sent prices up on Mideast
sours, with Dubai trading up to 16.50 dlrs after trading
yeterray as low as 15.63 dlrs and then spilled over into the
North sea crude oil market.
    Traders said that there have been persistent rumors today
that Japanese buyers are looking to pick up cargoes of Brent
for Japan and European trade sources indidate rumors of vessels
being fixed to make such shipments.
    North sea brent today rose over 17.00 dlrs with trades
reported as high as 17.05 dlrs, up one dlr.
    OPEC members' denials that they are producing over their
quotas sparked moves to cover short postitions.
    Indonesian oil minister Subroto said today that OPEC
production was below the 15.8 mln bpd quota agreed to last
december but he gave no details on OPEC production against
claims it was more at least one mln bpd above that level.
    "The production probably is about their quota level and
largely because Saudi Arabia will not discount and canot sell
its oil as a result," Margoshes said.
    Analysts have mixed opinions about the extent of the
current rally. Some believe prices can continue to rise if
Saudi Arabia and OPEC hold steady in a refusal to discount.
    But others said that despite the rally today there were
still several fundamental factors, including demand, which
could cut the rally short.
    Marion Stewart, an indepedent petroleum economist, said
slow growth in the economies of the U.S. and OECD would keep
demand for oil slack and he now estimates that demand to rise
about 1.4 pct over 1986.


.I 16628
.C
money-supply
.W
TREASURY BALANCES AT FED ROSE ON FEB 27.
    WASHINGTON, March 3 - Treasury balances at the Federal
Reserve rose on Feb 27 to 3.482 billion dlrs from 1.538 billion
dlrs the previous business day, the Treasury said in its latest
budget statement.
    Balances in tax and loan note accounts fell to 21.334
billion dlrs from 25.164 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 24.816
billion dlrs on Feb 27 compared with 26.702 billion dlrs on Feb
26.


.I 16631
.C
earn
.W
KASLER CORP <KASL> 1ST QTR JAN 31 NET.
    LOS ANGELES, March 3 -
    Shr profit three cts vs loss seven cts
    Net profit 161,000 vs loss 367,000
    Revs 24.3 mln vs 26.5 mln


.I 16632
.C
coffee
.W
COFFEE MAY FALL MORE BEFORE NEW QUOTA TALKS.
    By Douglas Learmond, Reuters
    LONDON, March 3 - Coffee prices may have to fall even lower
to bring exporting and importing countries once more round the
negotiating table to discuss export quotas, ICO delegates and
traders said.
    The failure last night of International Coffee
Organization, ICO, producing and consuming countries to agree
export quotas brought a sharp fall on international coffee
futures markets today with the London May price reaching a
4-1/2 year low at one stage of 1,270 stg per tonne before
ending the day at 1,314 stg, down 184 stg from the previous
close.
    The New York May price was down 15.59 at 108.00 cents a lb.
    Pressure will now build up on producers returning from the
ICO talks to sell coffee which had been held back in the hope
the negotiations would establish quotas which would put a floor
under prices, some senior traders said.
    The ICO 15 day average price stood at 114.66 cents a lb for
March 2. This compares with a target range of 120 to 140 cents
a lb under the system operating before quotas were suspended in
February last year following a sharp rise in international
prices caused by drought damage to the Brazilian crop.
    In a Reuter interview, Brazilian Coffee Institute, IBC,
President Jorio Dauster urged producers not to panic and said
they need to make hard commercial decisions. "If we have failed
at the ICO, at least we have tried," Dauster said, adding "now it
is time to go and sell coffee."
    But Brazil is keeping its marketing options open. It plans
to make an official estimate of the forthcoming crop next
month, Dauster said. It is too difficult to forecast now. Trade
sources have put the crop at over 26 mln bags compared with a
previous crop of 11.2 mln. Brazil is defining details of public
selling tenders for coffee bought on London's futures market
last year.
    A basic condition will be that it does not go back to the
market "in one go" but is sold over a minimum of six months.
    The breakdown of the ICO negotiations reflected a split
between producers and consumers on how to set the yardstick for
future quotas. Consumers said "objective criteria" like average
exports and stocks should determine producer quota shares,
Dauster said.
    All elements of this proposal were open to negotiation but
consumers insisted they did not want a return to the "ad hoc" way
of settling export quotas by virtual horse trading amongst
producers whilst consumers waited in the corridors of the ICO.
    Dauster said stocks and exports to ICO members and
non-members all need to be considered when setting quotas and
that Brazil would like to apply the coffee pact with a set
ratio of overall quota reflecting stock holdings.
    It is a "simplistic misconception that Brazil can dictate"
policy to other producers. While consumer countries are welcome
to participate they cannot dictate quotas which are very
difficult to allocate as different "objective criteria" achieve
different share-outs of quota, Dauster said.
    Other delegates said there was more open talking at the ICO
and at least differences were not hidden by a bad compromise.
    Consumer delegates said they had not been prepared to
accept the producers' offer to abandon quotas if it proves
impossible to find an acceptable basis for them.
    "We want the basis of quotas to reflect availability and to
encourage stock holding as an alternative to a buffer stock if
supplies are needed at a later stage," one delegate said.
    Some consumers claimed producer support for the consumer
argument was gaining momentum towards the end of the ICO
session but said it is uncertain whether this will now collapse
and how much producers will sink their differences should
prices fall further and remain depressed.
    The ICO executive board meets here March 30 to April 1 but
both producer and consumer delegates said they doubt if real
negotiations will begin then. The board is due to meet in
Indonesia in June with a full council scheduled for September.
    More cynical traders said the pressure of market forces and
politics in debt heavy Latin American producer countries could
bring ICO members back around the negotiating table sooner than
many imagine. In that case quotas could come into force during
the summer. But most delegates and traders said quotas before
October are unlikely, while Brazil's Dauster noted the ICO has
continued although there were no quotas from 1972 to 1980.
    A clear difference between the pressures already being felt
by importers and exporters was that consumers would have been
happy to agree on a formula for future quotas even if it could
not be imposed now. At least in that way they said they could
show a direct relationship between quotas and availability.
    In contrast producers wanted stop-gap quotas to plug the
seemingly bottomless market and were prepared to allow these to
lapse should lasting agreement not be found.
    "Producers were offering us jam tomorrow but after their
failure to discuss them last year promises were insufficient
and we wanted a cast iron commitment now," one consumer said.


.I 16633
.C
earn
.W
SEAMAN FURNITURE <SEAM> IN STOCK SPLIT.
    CARLE PLACE, N.Y., March 3 - Seaman Furniture Co Inc said
its board declared a two-for-one split of the company's
outstanding stock.
    It said holders of its common will receive one additional
share for each share held as of March 20. It said certificates
representing additional shares will be distributed as soon as
possible after April 10.


.I 16634
.C
earn
.W
<SCOTT'S HOSPITALITY INC> 3RD QTR JAN 31 NET.
    TORONTO, March 3 -
    Oper shr eight cts vs eight cts
    Oper net 5,219,000 vs 4,377,000
    Revs 214.9 mln vs 182.5 mln
    NINE MTHS
    Oper shr 51 cts vs 51 cts
    Oper net 29.6 mln vs 27.9 mln
    Revs 634.5 mln vs 569.3 mln
    1986 net excludes extraordinary gain of 8,031,000 dlrs or
15 cts shr.
    1987 net reflects three-for-one stock split in 2nd qtr and
issue of 1.5 mln subordinate voting shares in 1st qtr.


.I 16635
.C
earn
.W
TELXON CORP <TLXN> SEES HIGHER REVENUES.
    AKRON, Ohio, March 3 - Telxon Corp reported it expects
revenues for the quarter ending March 31 to be between 26 to 28
mln dlrs.
    The company said earnings per share for the period should
be between 23 cts to 26 cts.
    "The company is making an announcement at this time in
response to analysts fourth quarter revenues and earnings per
share estimates of 29 mln to 32 mln and 24 cts to 30 cts,
respecivtely," said Raymond Meyo, president and chief executive
officer.
    Telxon recorded revenues of 24.2 mln dlrs for the quarter
last year, and earnings per share of 22 cts, adjusted for a
three-for-two stock split in May 1986.


.I 16636
.C
acq
.W
ROYAL RESOURCES <RRCO> SETS VOTE ON SALE.
    DENVER, March 3 - Royal Resources Corp said its board set
an April 21 a shareholders' meeting to vote on the sale of its
oil and gas properties for 3,650,000 dlrs, an increase in
authorized common to 20 mln shares from 15 mln and the change
of the company's name to Royal Gold Inc.
    The company has agreed to sell its oil and gas properties
to <Victoria Exploration N.L.> of Perth, Western Australia.
    Royal Resources also said the sale of its interest in two
gold properties -- the Colosseum Mine in San Bernardino County,
Calif., and the Camp Bird mine near Ouray, Colo. -- was closed
on February 27. The company said it received 4.4 mln dlrs and
cancellation of the remaining balance due on the acquisition of
the interest, adding this represents 2.5 mln dlrs more than it
paid for the interest.


.I 16637
.C
earn
.W
AMERICAN VANGUARD CORP <AMGD> YEAR NET.
    LOS ANGELES, March 3 -
    Shr 57 cts vs 27 cts
    Net 1,002,000 vs 470,000
    Sales 15.9 mln vs 12.0 mln
    Note: 4th qtr figures not given.
   


.I 16640
.C
earn
.W
HARPER INTERNATIONAL INC <HNT> 3RD QTR JAN 31.
    SAN ANTONIO, Texas, March 3 -
    Shr 12 cts vs 19 cts
    Net 369,000 vs 358,000
    Revs 7,076,000 vs 6,712,000
    Avg shrs 3,050,000 vs 1,850,000
    Nine mths
    Shr 53 cts vs 63 cts
    Net 1,523,000 vs 1,158,000
    Revs 22.6 mln vs 20.7 mln
    Avg shrs 2,852,198 vs 1,850,000


.I 16642
.C
earn
.W
WITCO CORP <WIT> SETS REGULAR QTLY PAYOUT.
    NEW YORK, March 3 -
    Qtly div 28 cts vs 28 cts prior
    Pay April one
    Record March 13


.I 16644
.C
crude
.W
******PANCANADIAN TO SELL NORTH SEA PROPERTIES, UNIT TO WHITEHALL FOR CASH.
Blah blah blah.

.I 16646
.C
earn
.W
<MDS HEALTH GROUP LIMITED> IN QTLY PAYOUT.
    TORONTO, March 3 - 
    Qtly div six cts vs six cts prior
    Pay April one
    Record March 23


.I 16647
.C
earn
.W
HARPER INTERNATIONAL INC <HNT> 3RD QTR NET.
    SAN ANTONIO, Texas, March 3 - Qtr ended Jan 31
    Shr 12 cts vs 19 cts
    Net 369,000 vs 358,000
    Revs 7,076,000 vs 6,712,000
    Avg shrs 3,050,000 vs 1,850,000
    Nine mths
    Shr 53 cts vs 63 cts
    Net 1,523,000 vs 1,158,000
    Revs 22.6 mln vs 20.7 mln
    Avg shrs 2,852,198 vs 1,850,000


.I 16648
.C
earn
.W
BURST AGRITECH INC <BRZT> YEAR NOV 30 LOSS.
    OVERLAND, KAN., March 3 -
    Net loss 705,496 vs loss 182,766
    Sales 642,590 vs 1,126,315


.I 16651
.C
crude
.W
******API SAYS DISTILLATE STOCKS OFF 4.4 MLN BBLS, GASOLINE OFF 30,000, CRUDE UP 700,000.
Blah blah blah.

.I 16652
.C
alum
.W
ALCAN TO CLOSE WEST GERMAN SMELTER.
    MONTREAL, March 3 - Alcan Aluminium Ltd is closing its
aluminum smelter in Ludwigshafen, West Germany this June due to
high operating costs, an Alcan spokesman said.
    The smelter, near Frankfurt, had annual capacity of about
44,000 tonnes but was operating at about half that in January,
spokesman Fernand Leclerc said.
    Leclerc said Alcan decided it would cost too much to
modernize the plant.
    He said there is a possibility the company will sell the
smelter, which currently employs 320 people, before its
scheduled closing.


.I 16655
.C
crude
.W
PANCANADIAN TO SELL BRITISH INTERESTS.
    CALGARY, Alberta, March 3 - <PanCanadian Petroleum Ltd>
said it agreed to sell its working interest in its North Sea
properties and its British unit, Canadian Pacific Oil and Gas
of Canada Ltd, to Whitehall Petroleum Ltd, a private British
company.
    PanCanadian, 87 pct-owned by Canadian Pacific Ltd <CP>,
said it would receive 1.7 mln British pounds cash (3.5 mln
Canadian dlrs) at closing, expected in two to three months.
    It said the deal is subject to approval by regulators and
its partners in the properties, which consist of exploration
wells. It will also retain a royalty interest in the
properties.


.I 16659
.C
earn
.W
TELXON <TXLN> SEES SLIGHTLY HIGHER 4TH QTR NET.
    AKRON, OHIO, March 3 - Telxon Corp said it expects
per-share earnings for its fourth quarter ending March 31 to be
about 23 cts to 26 cts on revenues of 26 mln dlrs to 28 mln
dlrs.
    For the year-ago quarter, the company earned 22 cts a
share, adjusted for a three-for-two stock split, on revenues of
24.2 mln dlrs.
    The company said it made the earnings estimate in response
to analysts' forecasts, which it said called for per-share
earnings of 24 cts to 30 cts and revenues of 29 mln dlrs to 32
mln dlrs.


.I 16660
.C
acq
.W
REID-ASHMAN <REAS> TO DIVEST TEST PRODUCT UNIT.
    SANTA CLARA, Calif., March 3 - Reid-Ashman Inc said it has
decided to divest its test products division, located in Santa
Clara.
    The company said it will entertain offers through March 30.
It also said Steven Reid, a company founder and president of
the test division, has made an offer to purchase the unit.
    The company's test division accounted for about ten pct of
total revenues in the year ended Sept 30, 1986 and is currently
running a revenue rate of under two mln dlrs per year, it said.


.I 16661
.C
earn
.W
PACIFIC LIGHTING COPR <PLT> QUARTERLY DIVIDEND.
    LOS ANGELES, March 3 -
    Qtly div 87 cts vs 87 cts
    Pay Feb 17
    Record Jan 20


.I 16662
.C
earn
.W
CETEC CORP <CEC> QUARTERLY DIVIDEND.
    KAHULUI, Hawaii, March 3 -
    Qtly div five cts vs five cts
    Pay May 22
    Record May 8


.I 16663
.C
crude
.W
API SAYS DISTILLATE, GAS STOCKS OFF IN WEEK.
    WASHINGTON, March 3 - Distillate fuel stocks held in
primary storage fell by 4.4 mln barrels in the week ended Feb
27 to 127.10 mln barrels from 131.50 mln the previous week, the
American Petroleum Institute (API) said.
    In its weekly statistical bulletin, the oil industry trade
group said gasoline stocks fell 30,000 barrels to 252.92 mln
barrels from a revised 252.95 mln, while crude oil stocks rose
700,000 barrels to 329.38 mln from a revised 328.68 mln.
    It said residual fuel stocks fell 380,000 barrels to 38.04
mln from 38.42 mln barrels.
    API said refinery runs in the week fell to 12.17 mln
barrels per day from a revised 12.42 mln and refinery use of
operating capacity was 78.1 pct, off from a revised 79.7 pct.
    Crude oil imports in the week fell to 3.98 mln bpd from a
revised 4.22 mln, API added.


.I 16664
.C
earn
.W
JONES MEDICAL INDUSTRIES INC <JMED> 4TH QTR NET.
    ST. LOUIS, MO., March 3 - 
    Shr six cts vs five cts
    Net 199,037 vs 135,587
    Sales 1,594,895 vs 1,368,959
    Avg shrs 3.1 mln vs 2.5 mln
    Year
    Shr 25 cts vs 19 cts
    Net 695,398 vs 446,426
    Sales 5,785,365 vs 4,520,781
    Avg shrs 2.8 mln vs 2.4 mln


.I 16665
.C
earn
.W
MAUI LAND AND PINAPPLE CO INC QUARTERLY DIVIDEND.
    KAHULUI, Hawaii, March 3 -
    Qtly div 12-1/2 cts vs 12-1/2 cts
    Pay March 31
    Record Feb 27


.I 16667
.C
trade
.W
U.S. WINE EXPORTS ROSE 15 PER CENT LAST YEAR.
    SAN FRANCISCO, March 3 - Exports of American wine rose 14.9
per cent last year to a total of 7.2 million gallons, the Wine
Institute said.
    The San Francisco-based promotional group said 95 per cent
of the exported wine was from California and the top three
markets were Canada, Japan and Britain.
    Japan, which edged out Britain as the leading importer of
American wines in 1985, continued in second place.
    Canadian imports rose 3.2 per cent to 2.6 million gallons;
Japan, 9.9 per cent to 1.2 million gallons, and Britain, 20.2
per cent to 962,360 gallons.
    A spokesman for the institute said the declining value of
the dollar and strong promotional efforts on the part of the
California wine industry contributed significantly to the
increased shipments.
    The 1986 wine exports were valued at 34.7 mln dlrs, up from
27.6 mln dlrs the previous year.              


.I 16670
.C
orange
.W
USDA TO REDUCE CITRUS ESTIMATING PROGRAM.
     WASHINGTON, March 3 - the U.S. Agriculture Department's
National Agricultural Statistics Services (NASS) said it will
change its citrus estimate program for California and Arizona,
starting in 1988.
    NASS said it will discontinue California forecasts for
lemons during December, February, March, May and June and for
grapefruit and tangerines for those months plus November.
    Forecasts for lemons will be issued in October, November,
January, April and July and for grapefruit in October, January,
April, and July and for tangerines in October,  January and
April. There will be no change in the estimating program for
California oranges.
    Arizona forecasts will be dropped for lemons, oranges,
grapefruit and tangerines in November, December February,
March, May and June, with forecasts retained in October,
January, April and July, it said.
    There will be no changes in the estimating program for
citrus in Texas or Florida.


.I 16671
.C
earn
.W
<TRIMAC LTD> YEAR NET.
    CALGARY, Alberta, March 3 -
    Shr nine cts vs six cts
    Net 3,500,000 vs 2,500,000
    Revs 294.0 mln vs 351.5 mln
    Note: 1986 year includes tax gain of 1,700,000 dlrs


.I 16674
.C
acq
.W
OPPENHEIMER UPS VIACOM <VIA> STAKE TO 7.7 PCT.
    WASHINGTON, March 3 - Oppenheimer and Co, a New York
brokerage firm, said it raised its stake in Viacom
International Inc to the equivalent of 2,709,600 shares, or 7.7
pct of the total, from 2,232,400 shares, or 6.3 pct.
    In a filing with the Securities and Exchange Commission,
Oppenheimer said it bought a net 477,200 Viacom common shares
between Jan 19 and March 3 at prices ranging from 40.50 to an
average of 49.31 dlrs each. Part of its stake is in options.
    It said it bought the shares as part of its arbitrage and
investment business. Movie theater magnate Sumner Redstone and
a Viacom management group are in a bidding war for Viacom.


.I 16675
.C
earn
.W
EMPI INC <EMPI> 4TH QTR LOSS.
    MINNEAPOLIS, March 3 -
    Shr loss 25 cts vs profit 11 cts
    Net loss 446,005 vs profit 185,325
    Sales 2.4 mln vs 2.5 mln
    12 mths
    Shr loss 16 cts vs profit 41 cts
    Net loss 282,305 vs profit 709,787
    Sales 10.1 mln vs nine mln


.I 16676
.C
trade
.W
U.S. SENATE PANEL COULD CONSIDER TRADE MEASURE.
    WASHINGTON, March 3 - The U.S. Senate Agriculture Committee
may take up a bill tomorrow that would strengthen the
activities of U.S. agricultural trade teams in selected
developing countries, committee staff said.
    The measure, sponsored by committee Chairman Patrick Leahy
(D-Vt.) and Sen. John Melcher (D-Mont.), would establish trade
teams of between six and nine persons drawn from federal
agencies and private voluntary organizations, staff said.
    The trade missions would seek to generate interest in the
U.S. government's food donation and commercial programs --
PL480, Section 416, export credit and export enhancement -- and
upon return be required to advocate extension of concessional
or commercial benefits to interested countries.
    The trade teams would be made up of representatives of the
U.S. Agriculture Department, State Department, the Agency for
International Development and private voluntary organizations
such as U.S. Wheat Associates.
    The bill would require teams within six months to visit
seven countries: Mexico, Philippines, Indonesia, India,
Bangladesh, Senegal and Nigeria.
    Within one year after passage of the measure, another eight
countries would have to be visited: Peru, Kenya, the Dominican
Republic, Costa Rica, Malaysia, Venezuela, Tunisia and Morocco.
Other countries could be added to the list.
    Senate staff members said the bill, still in the drafting
stages, had broad support and was expected to be approved by
the committee tomorrow.


.I 16679
.C
earn
.W
FLORIDA PUBLIC <FPUT> SPLITS STOCK, UPS DIV.
    WEST PALM BEACH, Fla, March 3 - Florida Public Utilities Co
said its board declared a three-for-two stock split on its
common stock.
    It said holders of record April 15 will receive one
additional share May one for each two shares held.
    The company also said it raised the dividend on its common
stock by two cts to 33 cts a share on a pre-split basis.
    The dividend is payable April one to holders of record
March 18.


.I 16680
.C
earn
.W
CITY INVESTING TRUST <CNVLZ> SETS CASH PAYOUT.
    NEW YORK, March 3 - City Investing Co Liquidating Trust
said it declared a cash distribution of 25 cts a unit, payable
April 10 to unit-holders of record April one.
    The trust last paid a stock distribution of General
Development Corp <GDB> shares in July.


.I 16681
.C
orange
.W
FCOJ SUPPLIES SIGNIFICANTLY ABOVE YEAR AGO-USDA.
    WASHINGTON, March 3 - Total supply of frozen concentrated
orange juice (FCOJ) in 1986/87 is expected to be significantly
above year-earlier levels, even with carry-in stocks well below
the previous season, the U.S. Agriculture Department said.
    In a summary of its Fruit Situation Report, the Department
said Florida's imports of FCOJ, mostly from Brazil, have shown
sharp gains to date.
    The Department noted the price of FCOJ will probably be
affected by the final decision, scheduled for April 22, on
whether the U.S. considers Brazilian FCOJ exports to the U.S.
have caused injury.
    Continuing strong demand for fresh and processing fruit
coupled with seasonal declines in supplies mean that grower
prices will remain higher this spring than a year earlier.
    The department said stocks of fresh apples in cold storage
at the beginning of February were moderately larger than a year
earlier, but strong demand has kept apple prices firm.
    In view of the strong demand and seasonally reduced
supplies, apple prices are projected to stay firm.
    During the remainder of 1986/87, supplies of most processed
noncitrus fruit will be smaller than a year ago, it said.
    Movement of canned fruit has improved, and remaining
suppies for some canned fruit items are tight and as a
consequence prices have strengthened, the department said.


.I 16683
.C
earn
.W
FLORIDA COMMERCIAL BANKS INC <FLBK> DIVIDEND.
    MIAMI, March 3 - 
    Qtly div 14 cts vs 19 cts prior
    Pay March 31
    Record March 16
    Note: Quarterly dividend for prior quarter included special
payout of five cts a share.


.I 16684
.C
earn
.W
<TIMMINCO LTD> YEAR NET.
    TORONTO, March 3 -
    Oper shr 33 cts vs 33 cts
    Oper net 3,330,000 vs 2,969,000
    Revs 95.9 mln vs 92.0 mln
    Avg shrs 8,610,068 vs 7,603,219
    Note: 1986 net excludes extraordinary gain of 577,000 dlrs
or seven cts shr vs yr-ago gain of 71,000 dlrs or one ct shr.


.I 16686
.C
earn
.W
<UNITED FIRE AND CASUALTY> 4TH QTR NET.
    CEDAR RAPIDS, Iowa, March 3 -
    Shr profit 31 cts vs loss 20 cts
    Net profit 1,044,424 vs loss 515,425
    Avg shrs 3,406,841 vs 2,544,531
    Year
    Shr profit 2.83 dlrs vs profit 42 cts
    Net profit 8,811,142 vs profit 1,058,503
    Avg shrs 3,111,464 vs 2,544,531
    Note: Full company name is United Fire and Casualty Co
    Net includes realized gains of 93,551 dlrs and 764,177
dlrs, respectively, in 1986 qtr and year, and of 92,075 dlrs
and 972,935 dlrs, respectively, in 1985 qtr and year.
    1985 results restated for three-for-two stock split. Net
income for 1985 has been restated due to a change in the method
used in computing deferred acquisition costs.
    1986 results include the effect of a stock offering
resulting in the issuance of an additional 862,500 shares of
common stock.


.I 16687
.C
earn
.W
<POWER CORP OF CANADA> 4TH QTR NET.
    MONTREAL, March 3 -
    Oper shr 30 cts vs 24 cts
    Oper net 38,686,000 vs 28,384,000
    Revs 42.3 mln vs 31.2 mln
    Year
    Oper shr 1.05 dlrs vs 94 cts
    Oper net 136,594,000 vs 110,831,000
    Revs 153.3 mln vs 125.1 mln
    Note: Fourth quarter results exclude extraordinary and
other items which raised final 1986 net to 62,485,000 dlrs or
49 cts a share and lowered final 1985 net to 18,941,000 dlrs or
16 cts a share in 1985.
    Full-year results exclude extraordinary and other items
which raised final 1986 net to 237,961,000 dlrs or 1.87 dlrs
per share and 1985 net to 152,049,000 or 1.29 dlrs per share.
    1985 results restated to reflect June, 1986 two-for-one
stock split.


.I 16689
.C
grain;corn;sorghum;
.W
U.S. CORN, SORGHUM PAYMENTS 50-50 CASH/CERTS.
    WASHINGTON, March 3 - Eligible producers of 1986 crop U.S.
corn and sorghum will receive an estimated 600 mln dlrs in
deficiency payments -- 50 pct in generic commodity certificates
and 50 pct in cash, the U.S. Agriculture Department said.
    It said corn producers will receive about 515 mln dlrs and
sorghum producers about 85 mln dlrs.
    Only the cash portion of the payments will be subject to
the 4.3 pct reduction in compliance with the Gramm-Rudman
budget deficit control act of 1985, it said.
    Corn and sorghum producers who requested advance deficiency
payments have already received about 2.8 billion dlrs and 225
mln dlrs, respectively, USDA said.
    The Department said deficiency payment rates of 51.5 cents
per bushel for corn and 49 cents per bushel for sorghum were
received by producers requesting advance payments.
    Deficiency payments are calculated as the difference
between an established target price and the higher of the basic
loan rate, or the national average price received by farmers
during the first five months of the marketing year --
September-January.
    National weighted average market prices for the first five
months of the season were 1.46 dlrs per bushel for corn and
1.33 dlrs per bushel for sorghum. Eligible corn producers will
be paid 63 cts per bushel, based on the difference between the
3.03 target price and the 2.40 dlr per bushel basic loan rate.
    Sorghum producers' deficiency payment rate will be 60 cents
per bushel, based on the difference between the 2.88 dlrs per
bushel target price and the 2.28 dlrs per bushel basic loan
rate.
    The deficiency payment rates for both commodities are the
maximum permitted by law, the department said.
    Eligible corn and sorghum producers will receive another
1986 crop deficiency payment in October if the national average
market prices received by farmers during the entire marketing
year for both commodities are below the basic loan rates, the
department said.
    The payments will be issued through local Agricultural
Stabilization and Conservation Service offices, it said.


.I 16692
.C
livestock;carcass;
.W
USDA PROPOSES NAME CHANGES IN BEEF GRADE.
    WASHINGTON, March 3 - The U.S. Agriculture Department
proposes to rename the "USDA Good" grade of beef to "USDA Select."
    The department said the proposed change is in response to a
petition from Public Voice for Food and Health Policy and would
present a more positive image of this grade of beef and help
calorie-conscious consumers select leaner cuts of meat.
    Under current rules, the "good" grade of meat has less
marbling and fat than the "prime" or "choice" grades, it said.
    Standards for all of the grades would remain unchanged
under the proposal.


.I 16695
.C
earn
.W
VENDO CO <VEN> 4TH QTR LOSS.
    FRESNO, Calif., March 3 -
    Shr loss 1.48 dlrs vs loss 36 cts
    Net loss 4,036,000 vs loss 983,000
    Sales 16.6 mln vs 17 mln
    12 mths
    Shr loss 1.88 dlrs vs profit 71 cts
    Net loss 5,113,000 vs profit 1,904,000
    Sales 85.4 mln vs 88.5 mln
    Note: Prior year net includes extraordinary loss of 298,000
dlrs in qtr and extraordinary profit of 718,000 dlrs in year.


.I 16697
.C
wheat;grain;
.W
AUSTRALIAN GOVERNMENT TO PAY SUBSIDIES--USDA.
    WASHINGTON, March 3 - The Australian Government will likely
reimburse the Australian Wheat Board, AWB, about 132 mln (U.S.)
dlrs to pay wheat farmers for their 1986/87 crop, the U.S.
Agriculture Department said.
    In its report on Export Markets for U.S. Grains, the
department said the sharp fall in world wheat prices has
reduced the export sales revenue of the AWB to levels
insufficient to cover its breakeven export price estimated at
around 98 dlrs per tonne.
     For example the recent large sales of wheat to China (1.5
mln tonnes) and Egypt (2.0 mln tonnes) were well below the
breakeven export price, it said.
    Australian wheat farmers normally receive an advance
payment known as the Guaranteed Minimum Price, GMP, calculated
at 90 pct of the average of estimated returns in the current
year and the two lowest of the previous three years, the
department said.
    In addition, deductions for taxes, freight, handling and
storage are deducted from the GMP the farmer receives.
    But the department said the Australian Bureau of
Agricultural Economics, BAE, predicts wheat production will
drop sharply from 17.8 mln tonnes in 1986/87 to 13.5 mln in
1989/90.
    The decline will result from low world grain prices leading
to shifts to livestock and other crops which could benefit U.S.
wheat exports, the department said.


.I 16698
.C
earn
.W
LAWSON PRODUCTS INC <LAWS> RAISES QTLY PAYOUT.
    CHICAGO, March 3 -
    Qtly div seven cts vs six cts prior
    Pay April 17
    Record April three


.I 16699
.C
earn
.W
KANEB ENERGY <KEP> MAY OMIT FUTURE PAYOUTS.
    HOUSTON, March 3 - Kaneb Energy Partners Ltd said it may be
forced to omit or lower future quarterly cash distributions
because of a contract dispute with two major customers and the
continued slump in oil and gas prices.
    The partnership said, however, that it will pay a regular
quarterly distribution of 60 cts a unit on April 15 to holders
of record March 31.


.I 16701
.C
earn
.W
BRASCAN LTD <BRS.A> 4TH QTR NET.
    TORONTO, March 3 -
    Shr 50 cts vs 46 cts
    Net 43.0 mln vs 34.8 mln
    YEAR
    Shr 1.55 dlrs vs 1.38 dlrs
    Net 136.8 mln vs 112.9 mln
    Note: Holding company.


.I 16702
.C
earn
.W
FLORIDA COMMERCIAL BANKS INC <FLBK> QTLY DIV.
    MIAMI, Fla, March 3 -
    Qtly div 14 cts vs 14 cts prior
    Payable March 31
    Record March 16


.I 16704
.C
earn
.W
<CHAUVCO RESOURCES LTD> YEAR NET.
    CALGARY, Alberta, March 3 -
    Shr 16 cts vs 35 cts
    Net 476,000 vs 929,000
    Revs 3,000,000 vs 3,600,000


.I 16705
.C
wheat;corn;
.W
JAPAN CUTTING CHINA CORN COMMITMENTS - USDA.
    WASHINGTON, March 3 - Japanese traders have apparently
sharply reduced commitments to buy Chinese corn over the next
six months due to high prices, the U.S. Agriculture Department
said.
    In its World Production and Trade Report, the department
said traders indicated China may lack supplies or be unwilling
to sell at current low world prices.
    If the reports are confirmed, China's major export
destinations such as USSR, Japan, and South Korea, could
increase purchases of U.S. corn, it said.
    China is currently forecast to export 5.5 mln tonnes of
corn during 1986/87 (Oct-Sept), it said.


.I 16707
.C
crude
.W
SAUDI SUCCESS SEEN IN CURBING OPEC PRODUCTION.
    HOUSTON, March 3 - Saudi Arabia will succeed in pressuring
other members of the Organization of Petroleum Exporting
Countries to stay within their production quotas, said Morgan
Stanley Group managing director John Wellemeyer.
    Wellemeyer, speaking to reporters at an offshore oil
engineering conference, also said he expected OPEC nations to
attempt to hold prices under 20 dlrs a barrel for several years
to keep industrial demand for residual fuel oil strong.
    "Over the next few weeks I think you'll see a concerted
effort by the Saudis to get production down," Wellemeyer said.
    "The Saudis are committed to that price level (of 18 dlrs a
barrel) and are willing to make it happen again," he said.
    In recent weeks, oil prices fell to the 16 to 17 dlrs a
barrel level on market reports of some OPE members producing
above their quota, pushing total OPEC production to 15.8 mln
barrels per day. But prices rebounded today, with April U.S.
crude prices up about one dlr to over 17 dlrs a barrel on a
belief Saudi Arabia is attempting to curb OPEC output.
    Wellemeyer said that sharp declines in U.S. oil production
could push demand for OPEC oil above 20 mln barrels per day as
early as 1989 and up to 24 mln barrels per day by 1993.
    Although the projected increases in demand for OPEC oil
should strengthen world prices, Wellemeyer said he believed the
organization would hold its official price below 20 dlrs a
barrel for some time to prevent residual fuel users from
switching to natural gas supplies. The interfuel swing market
accounts for about eight mln barrels a day, or 18 pct of the
world demand for oil.


.I 16708
.C
wheat;grain;
.W
EC DRIVING TO CAPTURE BRAZIL WHEAT MARKET - USDA.
    WASHINGTON, March 3 - The European Community, EC, sold
75,000 tonnes of soft wheat at a subsidized price of between 85
and 89 dlrs per tonne FOB for March delivery in a continuing
bid to establish itself in the Brazilian wheat market, the U.S.
Agriculture Department said.
    The sale sharply undercut the U.S. offer of 112 dlrs per
tonne FOB for 33,000 tonnes of wheat, it said in its latest
report on Export Markets for U.S grains.
    EC sales to Brazil total about 225,000 tonnes during
1986/87 (July-June) in stark contrast to only 50,000 tonnes in
the 1985/86 season, it said.
    The increasing presence of EC wheat in Brazil comes at a
time when the Brazilian Wheat Board, BWB, expects the wheat
import market will expand to 3.4 mln tonnes from the current
forecast of 3.0 mln in the 1986/87 year.
    The BWB cites record consumption and an eventual decline in
domestic production, and says government plans to lower the
guaranteed price of wheat from 242 dlrs per tonne to 180 dlrs
will contribute to greater import demand, the USDA said.
    It said the BWB expects the U.S. to be major supplier of
the additional 400,000 tonnes, but commitments for purchase of
U.S. wheat through two-thirds of 1986/87 year total only
600,000 tonnes versus 700,000 a year ago.


.I 16711
.C
earn
.W
ZENITH LABS <ZEN> WILL REPORT 4TH QTR LOSS.
    RAMSEY, N.J., March 3 - Zenith Laboratories Inc said the
company will report a fourth quarter loss, and the amount will
be determined on completion of its year end audit. The company
did not elaborate further.
    For the third quarter ended Sept 30, 1986, Zenith reported
a loss of 3,451,000 dlrs or 16 cts per share, adjusted for a
May 1986 2-for-1 stock split.
    The company also said it received Food and Drug
Administration approval to market Cefadroxil, a generic version
of an antibiotic with domestic sales exceeding 50 mln dlrs in
1986.
    Zenith said it will not market the drug until "questions
relating to the applicability of certain patents have been
resolved."


.I 16713
.C
livestock;carcass;
.W
MANDATORY PRODUCTION CONTROLS DEBATED AT APC.
    Chicago, March 3 - Delegates to the American Pork Congress
will decide whether or not they want mandatory production
controls when they vote on the official pork producer policy
wednesday, the National Pork Producers Council said.
    The American Pork Congress, APC, delegates, listened to
both sides of the question when former Iowa Congressman Berkley
Bedell and Bill Lesher, USDA Assistant Secretary for Economics
for the years 1981 to 1985 debated at the convention in
Indianapolis.


.I 16714
.C
oilseed;soybean;
.W
TAIWAN BUYS 25,000 TONNES U.S. SOYBEANS.
    CHICAGO, March 3 - Taiwan bought 25,000 tonnes U.S.
soybeans today at 203.40 dlrs a tonne, C and F, Gulf, for May
15-30 shipment, private export sources said.


.I 16715
.C
grain;corn;
.W
TAIWAN PASSES ON U.S. CORN, WILL RETENDER.
    CHICAGO, March 3 - Taiwan passed on its tender overnight
for 25,000 tonnes of U.S. corn and 49,000 tonnes U.S. sorghum,
private export sources said.
    Taiwan will retender for the corn, for May 15-30 shipment
if via the Gulf, or June 1-15 via Pacific northwest, on March
6, but has not rescheduled a tender for sorghum, they said.


.I 16716
.C
wheat;grain;
.W
BANGLADESH PASSES ON TENDER FOR SOFT WHEAT.
    CHICAGO, March 3 - Bangladesh passed on its weekend tender
for 100,000 tonnes of optional origin soft wheat, private
export sources said.


.I 16718
.C
livestock;carcass;
.W
PORK CHECKOFF REFUNDS LESS THAN EXPECTED.
    Chicago, March 3 - The National Pork Board announced at the
American Pork Congress convention in Indianapolis that refunds
under the legislative checkoff program are running less than
expected.
    The Board oversees collection and distribution of funds
from the checkoff program that was mandated by the 1985 farm
bill. Virgil Rosendale, a pork producer from Illinois and
chairman of the National Pork Board, said over 2.2 mln dlrs was
collected in January and refunds are running almost nine pct,
considerably less than expected.
    "We believe that this indicates good producer support for
the new checkoff. We're getting good compliance from markets,
from packers and from dealers," Rosendale said.


.I 16719
.C
grain;corn;
.W
SOUTH AFRICA CORN EXPORTS COULD BE REDUCED-USDA.
     WASHINGTON, March 3 - Despite earlier optimistic
indications, the South African corn crop is at a critical stage
in its development and recent reports of heat stress could
reduce production and therefore exportable supplies, the U.S.
Agriculture Department said.
    In its report on Export Markets for U.S. Grains, the
department said South Africa's corn exports in the 1986/87
(Oct-Sept) season are estimated at 2.5 mln tonnes, up 40 pct
from the previous year.
    The re-emergence of South Africa as a competitor follows a
period of severe droughts, which at one point required South
Africa to import 2.7 mln tones of U.S. corn in 1983/84, it
said.
    Since those imports in 1983/84, the U.S. has been facing
increased competition from South Africa in Taiwan and Japan.
    But if South Africa is perceived as lacking available
supplies, purchases of U.S. corn may be further stimulated, the
department said.


.I 16724
.C
earn
.W
<DEXLEIGH CORP> SIX MTHS DEC 31 NET.
    TORONTO, March 3 -
    Shr four cts vs three cts
    Net 4,505,000 vs 4,493,000
    Revs 23.3 mln vs 21.4 mln


.I 16725
.C
oilseed;wheat;grain;soybean;cotton;
.W
CBT TRADERS LOOK AHEAD TO SPRING PLANTINGS.
    CHICAGO, March 3 - Chicago Board of trade grain traders and
analysts voiced a lot of interest in how farmers planned to
handle their upcoming spring plantings, prompting sales of new
crop months of corn and oats and purchases in new crop soybeans
in the futures markets.
    Professionals in the grains trade think that farmers will
be more willing to stick with corn acres than soybeans because
corn is protected by the acreage reduction program. That gives
deficiency payments to farmers if corn prices stay low.
    Farmers can place soybeans under the loan program if they
sign-up for reduced acreage, but they have no price guarantees.
    With the price outlook for both commodities so dismal,
traders believe farmers will want to stick with a sure thing
rather than gamble on soybeans, even though the new crop
soybean/corn ratio of 2.9/1 would make planting soybeans more
attractive under normal circumstances.
    An announcement late Friday that the USDA will lift the
limited cross-compliance requirement for the 1987 oats crop,
means farmers will be able plant an estimated two to three mln
more oat acres this year than last without being penalized,
traders said.
    Here too, acres some farmers may have been thinking of
shifting to soybeans will now be planted with oats, due to the
more attractive deal from the government, they added.
    Cotton prices are almost twice what they were just six
months ago, which should prompt many farmers in the South to
put soybean land back into cotton.
    One of the reasons for the steady increase in soybean
production in recent years has been a general shift of acres in
traditional cotton producing regions of the South to soybeans,
which are easier to grow, one commercial trader said.


.I 16726
.C
grain
.W
U.S. CONGRESS TO LOOK AT SOIL PROGRAM EXEMPTIONS.
     WASHINGTON, March 3 - The Senate Agriculture Committee is
expected to take up a bill tomorrow that would exempt from
government conservation regulations those farmers who have
rotated alfalfa and other multiyear grasses and legumes with
row crops, committee staff said.
    Under current so-called "sodbuster" law, farmers who planted
alfalfa and other multiyear grasses and legumes on highly
erodible land in the years 1981 through 1985 lose federal farm
program benefits if they produce a row crop on that land in
later years.
    Sen. Edward Zorinsky (D-Neb.), sponsor of the measure, said
recently that those crop rotating practices resulted in less
erosion than the practices of many farmers who produced
strictly row crops.


.I 16727
.C
carcass
.W
NATIONAL PORK BOARD ALLOCATES 2.4 MLN DLRS.
    Chicago, March 3 - The National Pork Board on Monday
allocated 2.4 mln dlrs in discretionary funds, collected from
the 100 pct national checkoff program, to three industry
organizations.
    The National Pork Producers Council, NPPC, will receive
almost 1.8 mln dlrs for use in the areas of food service,
consumer education and marketing. In addition the board
allocated 375,000 dlrs in use in "Pork - The Other White Meat"
campaign, according to a Pork Board spokesperson.
    The National Livestock and Meat Board will receive 644,000
dlrs to continue work in educating health care officials.
120,000 dlrs in matching funds will be provided to the meat
board for use in the development of a better market for
processed meats.
    The Meat Export Federation was awarded 50,000 dlrs to
increase the market for chilled and processed U.S. pork in
Japan and Singapore. Retail stores in these two countries will
be providing additional funding for the program.
    A total of 5,000 dlrs for work in encouraging McDonalds to
expand its McRib sandwich to Japan and Singapore was also
awarded to the Meat export Federation.


.I 16729
.C
acq
.W
NIPPON STEEL INVESTS 8 MLN DLRS IN GTX CORP.
    CHICAGO, March 3 - GTX Corp said Nippon Steel Co of Japan,
in a move to diversify into high technology, invested eight mln
dlrs in GTX.
    Nippon's move was the result of current exchange rates and
the revaluation of the yen, which "have made the U.S.
electronics industry an attractive investment opportunity for
Japanese corporations," according to a GTX statement.
    GTX noted that Nippon is expecting sales of 27 billion dlrs
by 1995. Of that amount, six billion dlrs is targeted for
electronics. GTX, located in Phoenix, makes computerized
systems that read drawings and transfer them into data bases.


.I 16732
.C
acq
.W
C.T.C. DEALER EXTENDS BID FOR CANADIAN TIRE.
    TORONTO, March 3 - C.T.C. Dealer Holdings Ltd said it
extended its previously announced offer for 49 pct of <Canadian
Tire Corp Ltd> to midnight on March 26.
    CTC, a group of Canadian Tire dealers, which already owns
17 pct of Canadian Tire, is currently appealing in an Ontario
court against a previously announced Ontario Securities
Commission ruling blocking CTC's 272 mln dlr bid.
    The blocked bid did not include non-voting shareholders,
who hold 96 pct of Canadian Tire equity.


.I 16734
.C
earn
.W
ROCKWELL <ROK> SEES IMPROVEMENT IN 1987.
    LOS ANGELES, March 3 - Rockwell International Corp
continues to expect significant improvement in 1987 results,
despite the somewhate disappointing performance of one of its
business segments, President Donald Beall told Reuters.
    Rockwell reported net earnings in its first quarter ended
December 31 of 149.4 mln dlrs, or 1.05 dlrs per share, compared
to 125.8 mln dlrs, or 84 cts per share a year ago.
    Operating earnings, however, were off about four pct, and
analysts have attributed the decline to Rockwell's
Allen-Bradley unit, which has suffered from weakness in the
industrial automation market.
    "It is in a soft market now, but we are not concerned. It
is moving forward with market development and is enhancing
market share," Beall said of Allen-Bradley unit.
    Beall, who was in Los Angeles to address a Technology
management conference, said first quarter sales for the
Allen-Bradley unit were flat as compared to a year earlier. He
said the company does not break out operating earnings by unit
on a quarterly basis.
    Beall said the recent trend toward cost sharing in the
research and development phase of government contracts should
not have a major impact on Rockwell's near-term performance.
    He noted, however, the increasing focus on cost sharing
could limit technological innovation.
    "I worry that we are heading into a period of misuse of
contracting approaches too early in the development stages of
important military contracts," Beall said, adding, "long-term,
we have a very serious problem."
    In addition, Beall told the conference the greatest
competitive threat to defense contractors is in defense
electronics, due to the government's attempt to take advantage
of competitively priced products made outside the U.S.


.I 16737
.C
acq
.W
INVESTOR GROUP PUTS PRESSURE ON GENCORP <GY>.
    NEW YORK, March 30 - An investor group trying to acquire
GenCorp Inc said it would move to unseat the board of directors
and take other action if GenCorp refuses to discuss a 2.3
billion dlr takeover bid.
    General Acquisition Co, a partnership of Wagner and Brown
and AFG Industries Inc <AFG>, reiterated in a statement sent to
GenCorp on Friday that it was willing to negotiate its earlier
offer of 100 dlrs a share for the tire, broadcasting, plastics
and aerospace conglomerate.
    Analysts have speculated GenCorp could fetch at least 110
to 120 dlrs per share if broken up.
    GenCorp officials declined to comment on the statement, but
a spokesman reiterated a request to shareholders to wait until
the board renders an opinion before making a decision on the
offer. GenCorp has said a statement would be made on or before
the company's annual meeting on Tuesday.
    General Acquisition said the board could not carry out its
duties to shareholders and make an informed decision until it
has, "... Explored with us the ways in which our offer can be
revised to provide greater value to your shareholders."
    General Acquisition added it was aware the board may be
reviewing alternative transactions, which might provide GenCorp
shareholders with a payment other than cash.
    "If that is the case, you should recognise that our
additional equity capital may very well enable us to offer cash
and securities having greater value than GenCorp could provide
in any similarly structured transaction," it said.
    It added GenCorp's board had an obligation to present any
alternative proposal to shareholders in a way that allowed
competing offers.
    General Acquisition requested it be given a chance to bid
on a competitive and fair basis before any final decision was
made on any other buyout proposal.
    The statement repeated the request GenCorp remove a "poison
pill" preferred share purchase rights to shareholders, making
any takeover more expensive.
    It said it might take legal action, or seek the support of
shareholders in calling a special meeting to replace the board
and consider other proposals.
    GenCorp should not accept any other proposal containing
defensive features, it said.


.I 16739
.C
nickel
.W
SUMITOMO MINING <SMIT.T> RAISES NICKEL OUTPUT.
    TOKYO, March 30 - Sumitomo Metal Mining Co said it will
raise its monthly nickel output to around 1,750 tonnes from
April 1 from 1,650 now because of increased domestic demand,
mainly from stainless steel makers.
    Sumitomo produced 1,800 tonnes of a nickel a month until
end-1986, but cut output in January because of stagnant demand,
a company official said.
    Calendar 1987 production is likely to fall to around 20,000
tonnes from 22,000 in 1986 as a result of the first quarter
reduction, he said.
    Sumitomo is Japan's only nickel producer.


.I 16740
.C
dlr;money-fx;yen;
.W
******Nakasone says major nations committed in Paris to stable dlr above 150 yen.
Blah blah blah.

.I 16742
.C
dlr;money-fx;yen;
.W
******Miyazawa says major nations have intervened aggressively since dlr fell below 150 yen.
Blah blah blah.

.I 16743
.C
coffee
.W
PATON REPORTS U.S. GREEN COFFEE ROASTINGS HIGHER.
    NEW YORK, March 30 - U.S. roastings of green coffee in the
week ended March 21 were about 250,000 (60-kilo) bags,
including that used for soluble production, compared with
195,000 bags in the corresponding week of last year and about
300,000 bags in the week ended March 14, George Gordon Paton
and Co Inc reported.
    It said cumulative roastings for calendar 1987 now total
3,845,000 bags, compared with 4,070,000 bags by this time last
year.


.I 16745
.C
dlr;money-fx;yen;
.W
G-6 WANTS TO HOLD DLR ABOVE 150 YEN - NAKASONE.
    TOKYO, March 30 - Prime Minister Yasuhiro Nakasone said
that Japan and other industrialized nations committed
themselves in Paris last month to stabilize the dollar above
150 yen.
    He told a Lower House Budget Committee in Parliament that
the six nations have taken measures, including market
intervention, to support the dollar above that level.
    Finance Minister Kiichi Miyazawa told the same committee
that the six - Britain, Canada, France, Japan, the U.S. And
West Germany - had intervened aggressively since the dollar
fell below 150 yen.
    Miyazawa said major nations are trying hard to stabilize
exchange rates.
    Asked if there had been any change in the fundamentals of
each nation since the February 22 Paris accord, he said he did
not think the fundamentals themselves had changed
substantially.
    But he said the market is sensitively looking at what is
happening in major nations. He did not elaborate.
    Miyazawa added that it was difficult to say why there has
been such speculative dollar selling in the market.


.I 16746
.C
earn
.W
******BASF 1986 world group pre-tax profit 2.63 billion marks vs 3.04 billion.
Blah blah blah.

.I 16748
.C
sugar
.W
AUSTRALIAN SUGAR AREAS SAID RECEIVING SOME RAIN.
    SYDNEY, March 30 - Dry areas of the Australian sugar cane
belt along the Queensland coast have been receiving just enough
rain to sustain the 1987 crop, an Australian Sugar Producers
Association spokesman said.
    The industry is not as worried as it was two weeks ago, but
rainfall is still below normal and good soaking rains are
needed in some areas, notably in the Burdekin and Mackay
regions, he said from Brisbane.
    Elsewhere, in the far north and the far south of the state
and in northern New South Wales, the cane crop is looking very
good after heavy falls this month, he said.
    The spokesman said it is still too early to tell what
effect the dry weather will have on the size of the crop, which
is harvested from around June to December.
    He said frequent but light falls in the areas that are
short of moisture, such as Mackay, mean they really only need
about three days of the region's heavy tropical rains to
restore normal moisture to the cane.
    But rainfall in the next two or three weeks will be crucial
to the size of the crop in the dry areas, he said.
    "It's certainly not a disastrous crop at this stage but it
might be in a month without some good falls," he said.


.I 16749
.C
earn
.W
BASF AG <BASF.F> 1986 YEAR.
    LUDWIGSHAFEN, West Germany, March 30 - Year to December 31.
    World group pre-tax profit 2.63 billion marks vs 3.04
billion.
    World group turnover 40.47 billion vs 44.38 billion.
    World group investment in fixed assets 2.66 billion vs 2.46
billion.
    Parent company pre-tax profit 1.97 billion vs 1.91 billion.
    Parent turnover 18.72 billion vs 20.46 billion.
    Parent domestic turnover 7.10 billion vs 8.14 billion.
    Parent foreign turnover 11.62 billion vs 12.32 billion.
    Parent investment in fixed assets 1.14 billion vs 884 mln.


.I 16750
.C
dlr;money-fx;yen;
.W
JAPAN ISOLATED, YEN RISES, WORLD FEELS CHEATED.
    By Eric Hall, Reuters
    TOKYO, March 30 - Japan is becoming dangerously isolated
again as the U.S. And Europe feel they have been cheated by
Japanese promises to switch from export to domestic-led growth,
officials and businessmen from around the world said.
    As the dollar today slipped to a record low below 145 yen,
making Japanese exporters and holders of dollar investments
grit their teeth harder, Finance Minister Kiichi Miyazawa said
there was a perception Japan had reneged on its promise.
    The problem goes deep and centres on misunderstandings by
both sides over the key Maekawa report of April, last year.
    The document was prepared by a private committee formed by
Prime Minister Yasuhiro Nakasone and led by former Bank of
Japan head Haruo Maekawa. It recommended that to stop friction
due to its large trade surpluses, Japan must "make a historical
transformation in its traditional policies on economic
management and the nation's lifestyle. There can be no further
development for Japan without this transformation."
    Americans and Europeans took the report to heart and have
looked in vain for clear signs of this historic change. But the
Japanese remain doubtful about the short, or even medium term
prospects of totally transforming their economic habits.
    The bubble of frustration against what appears as Japanese
prevarication burst last week. The U.S. Said it intended to
raise tariffs of as much as 300 mln dlrs on Japanese exports to
the U.S. On the grounds Japan had abrogated a bilateral
semiconductor pact.
    British Prime Minister Margaret Thatcher threatened to
block Japanese financial firms from London after the Japanese
placed what the British say are restrictive conditions on a bid
by British firm Cable and Wireless to join a domestic
telecommunications joint venture.
    On Friday, European currency dealers said European central
banks, annoyed at restrictive Japanese trade practises, might
leave Japan alone to intervene to staunch the rise of the yen.
    Eishiro Saito, head of top Japanese business group
Keidanren, spotted the dangers inherent in such contradictory
views last November when he visited the European Community.
"Related to this matter of (trade) imbalance, the point that I
found to be of great cause for alarm during this trip to Europe
was the excessive degree of hope placed by the Europeans in the
results of the Maekawa report," he said.
    "We explained that the process of restructuring the economy
away from its dependence on exports toward a balance between
domestic and external demand...Would take time," Saito said.
    Saito's words were ignored. In February, EC Industrial
Policy Director Heinrich von Moltke came to Japan and said "I
only know that your government, under the leadership of
Maekawa, points to restructuring your economy into a less
outward looking, more inward looking one. It is the Maekawa
report which has attracted the most attention in Europe."
    And Europeans and Americans want quick action. "A far better
answer than protectionism would be structural change within the
Japanese economy, the kind suggested by the Maekawa report. And
we hope to see changes occur in the near future," visiting
Chairman of General Motors Roger Smith said in March.
    Such expectations are now ingrained, which was partly the
fault of Nakasone, who heralded Maekawa's report as a sea of
change in Japanese affairs, said U.S. Officials.
    Months before the report was issued, U.S. And EC business
leaders met their Japanese colleagues to discuss the trade
problem.
    "We are more anxious than ever that the new approach of the
Maekawa committee does lead to speedy and effective action,"
said EC Industrial Union leader Lord Ray Pennock.
    "The important implication of the Maekawa report is that it
is finally looking to let Japanese enjoy the fruits of their
labour," said Philip Caldwell, Senior Managing Director of
Shearson Lehman Brothers.
    Contents of the report were leaded well ahead of issuance.
    Japanese officials say they are implementing the report as
fast as they can, said a European ambassador who has travelled
the country asking about this issue.
    He said People mentioned many things in line with the
spirit of the report, including restructuring of the coal and
steel industries.
    A major misunderstanding is that the private report was
government policy. Europeans are confused about this,
underlined by von Moltke's reference to the "leadership" of the
Maekawa report. Even so, Japanese officials point to last
September's government programme of new economic measures.
"Without endorsing the report as policy, officials point out
that the government has put its signature to a programme
designed to implement the report," the ambassador said.


.I 16753
.C
acq
.W
******Woolworth Holdings says it bidding 244 mln stg for Superdrug stores.
Blah blah blah.

.I 16754
.C
crude
.W
INDONESIA LIMITS OIL PRICE IMPACT-FINANCE MINISTER.
    JAKARTA, March 30 - Indonesia has minimised the economic
impact of falling oil prices, kept inflation within limits and
boosted exports, Finance Minister Radius Prawiro said.
    Indonesia was badly hit by last year's steep plunge in
crude prices, which cut revenue from oil exports by half.
    But Prawiro was quoted by Indonesian newspapers as telling
President Suharto that inflation was kept to around nine pct in
the financial year ending tomorrow, against around 4.3 pct the
previous year.
    Exports were estimated to have risen by seven pct, he said,
although he did not give complete figures.
    The depressed economy forms the main backdrop to general
elections next month in Indonesia, a major producer of rubber,
palm oil, tin, timber and coffee.
    Prawiro said 1986/87 had also been difficult because of the
appreciation of currencies like the yen and the mark against
the dollar, which increased Indonesia's debt repayments.
    He said the economy would have suffered more from the world
economic recession if the government had not devalued the
rupiah by 31 pct last September.
    In an editorial on the economic outlook, the Jakarta Post
said the government must press ahead with measures to
deregulate the economy to help boost non-oil exports.
    The English-language daily said bigger export earnings were
needed to finance not only imports but also the country's
growing foreign debt, estimated at around 37 billion dlrs.
    "About 50 pct of our foreign debt obligations fall due
within the next three to five years and will steadily increase
the debt servicing burden," the paper said.
    However, end-investors were seen bargain hunting in
expectation of a further yen interest rate decline, dealers
said.
    Most dealers were cautious in the face of the dollar's
nosedive today and the possibility of a U.S. Interest rate
rebound to halt further dollar depreciation.
    A 4.7 pct coupon and volume of 1,400 billion yen for the
April 10-year bond proposed by the Finance Ministry this
afternoon were taken favourably by the market.


.I 16755
.C
acq
.W
WOOLWORTH BIDS 244 MLN STG FOR SUPERDRUG.
    LONDON, March 30 - Woolworth Holdings Plc <WLUK.L> said it
would make a 244 mln stg agreed bid for <Superdrug Stores Plc>
valuing the company's shares at about 696p each.
    The offer would be made on the basis of 17 new Woolworth
ordinary shares for every 20 in Superdrug.
    Woolworth said it had received acceptances from the holders
of 61 pct of Superdrug shares.
    The bid is Woolworth's second attempt in recent months to
acquire a retail chemist chain. Earlier this year it negotiated
a possible bid for <Underwoods Plc> buit the talks were broken
off two weeks ago.
    Full acceptance of the offer would involve the issue of
about 29.8 mln new Woolworth shares, or 14 pct of the enlarged
share capital. A cash alternative would offer 646p for each
share in Superdrug. Members of the Goldstein family have
accepted the offer for 11.7 mln shares, which have not been
underwritten.
    Another major shareholder, Rite Aid Corp's Rite Investments
Corp unit, had accepted the offer for 9.9 mln shares, and would
take the cash alternative for 9.0 mln of these.
    In the year to end-January, Woolworth reported pretax
profits sharply higher at 115.3 mln stg after 81.3 mln
previously.
    In the year to end-February, Superdrug reported pretax
profits of 12.26 mln after 10.36 mln previously on turnover
that rose to 202.9 mln from 164.3 mln. Superdrug shares firmed
to 670p from 480p on Friday. Woolworth eased to 813p from 830p.


.I 16756
.C
trade
.W
JAPAN HAS LITTLE NEW TO OFFER IN MICROCHIP DISPUTE.
    By Linda Sieg, Reuters
    TOKYO, March 30 - The Japanese government appears to have
little new to offer to settle a dispute with the U.S. Over
computer chips, trade analysts and government officials said.
    The U.S. Has threatened to impose tariffs worth up to 300
mln dlrs on Japanese electronics exports to the U.S., In
retaliation for Japan's alleged failure to keep a pact on the
microchip trade signed last September.
    A Foreign Ministry official told Reuters "Japan has done
what it can, and now we must persuade the United States to wait
for those steps to take effect."
    The U.S. Alleges that, in defiance of the September
agreement, Japan is still selling microchips at below cost in
non-U.S. Markets and refusing to open Japan further to U.S.
Chip sales. U.S. Tariffs are due to take effect on April 17.
     Analysts noted Japan's Ministry of International Trade and
Industry (MITI) has already ordered chipmakers to cut
production in order to dry up the source of cheap chips sold in
third countries at non-regulated prices.
    "I'm not sure MITI can do much more than it has," said
Jardine Fleming (Securities) Ltd analyst Nick Edwards.
    A MITI official said the Ministry was not planning to call
for production cuts beyond those already sought, although it
would continue to press chip users to buy more foreign goods.
    Spokesmen for some Japanese electronics firms said they
would consider buying more U.S. Chips. But a Matsushita
Electric Industrial Co spokesman said a rapid increase in
imports was not likely.
    Most analysts said Japanese exporters would be hard hit if
the United States did implement the tariffs, which would be
levied on consumer electronics products rather than on
microchips themselves.
    "If the tariffs remain in place for any length of time,
there will be complete erosion of exports to the United States,"
said Tom Murtha, analyst at James Capel and Co.
    "The Japanese electronics industry is too powerful to be
stopped altogether, but recovery for the industry will be
delayed for another year," he said.
    Some analysts said tariffs would also harm U.S. Industry by
stepping up offshore production and by reducing demand in Japan
for semiconductors U.S. Firms are trying to sell here.
    "The American approach is full of contradictions," Jardine
Fleming's Edwards said.
    "If they want to expand (U.S.) exports, the last thing they
want to do is hit the makers of the final products because that
hurts the final market," Edwards said.
    But other analysts said the dispute reflects not just U.S.
Concern over what it sees as a strategic industry, but also
frustration with Japan's vast trade surplus. Some analysts
argued that to solve the semiconductor problem Japan may have
to take action beyond that pledged in the semiconductor pact.
    Carole Ryavec, an analyst at Salomon Brothers Asia Ltd,
said "The major overall issue is to stimulate the domestic
economy and move away from an export-dependent economy."


.I 16757
.C
dlr;money-fx;yen;
.W
H.K. DEALERS SAY NAKASONE G-6 COMMENT TOO LATE.
    By Joshua So, Reuters
    HONG KONG, March 30 - Remarks by Japan's Prime Minister
Yasuhiro Nakasone that last month's G-6 meeting agreed to
stabilize the dollar above 150 yen have come too late to
influence currency trading, dealers said.
    After Nakasone's statement the dollar rose to 146.40/50 yen
from an initial low of 144.20/40 and New York's Friday finish
of 147.15/25. But the rebound was largely on short-covering,
they said.
    "I think (Nakasone's) desperate," said a U.S. Bank foreign
exchange manager.
    Nakasone told a Lower House Budget Committee in Parliament
that Japan and other industrialized nations committed
themselves in Paris last month to stabilize the dollar above
150 yen.
    Finance Minister Kiichi Miyazawa told the same committee
that the six - Britain, Canada, France, Japan, the U.S. And
West Germany - had intervened aggressively since the dollar
fell below 150 yen.
    "His (Nakasone) remarks should have been made and should
have had a bigger influence when the dollar was still above 150
yen," said P.S. Tam of Morgan Guaranty Trust.
    Tam said the dollar has hit short-term chart targets  and
is likely to rebound. But he warned of another dip to below 145
yen.
    Dealers said the worsening trade relations between the U.S.
And Japan will continue to depress the dollar.
    The trade issue has now become a political issue since the
Reagan Administration is facing uproar in Congress over
th3pYgks in cutting the country's 169.8 billion dlr trade
deficit, they said.


.I 16760
.C
earn
.W
ARBED SA <ARBB.BR> YEAR 1986.
    LUXEMBOURG, March 30 - Net profit 890 mln Luxembourg francs
vs 1.12 billion.
    Turnover 57.8 billion francs vs 65.3 billion.
    Cash flow 5.72 billion francs vs 6.70 billion.
    Steel production 3.74 mln tonnes, down seven pct.
    Board will decide on April 24 whether to pay a dividend. No
dividend has been paid since 1984.


.I 16762
.C
grain;corn;
.W
JAPAN ACTIVELY BOUGHT U.S. CORN LAST WEEK - TRADE.
    TOKYO, March 30 - Japanese feed and starch makers actively
bought U.S. Corn last week, C and F basis, for July/September
shipment in view of bullish freight rates following active
inquiries by the Soviet Union, trade sources said.
    Some said the makers were seen buying some 30 pct of their
requirements, estimated at about three mln tonnes for the
three-month shipment period.
    "Belief is growing that freight rates will not decline
sharply from current high levels even in the usually sluggish
summer season because the Soviet Union's chartering is seen
continuing five to seven months from April," one source said.
    The sources said Japanese trading houses were seen covering
a total of 500,000 tonnes of Chinese corn for shipment in May
to October. But they are believed to have not yet sold most of
the corn to end-users in anticipation of further corn price
rises in the world market.
    Supply from Argentina and South Africa for July/September
is still uncertain. But the sources forecast supplies from
Argentina may fall to 400,000 to 500,000 tonnes from an
anticipated 800,000 in calendar 1987 and from South Africa to
700,000 to 800,000 tonnes from an estimated one mln in light of
tighter export availability.


.I 16763
.C
earn
.W
ARBED SEES NEED TO MAINTAIN PRESSURE ON COSTS.
    LUXEMBOURG, March 30 - The recent deterioration in the
steel market makes it important for Arbed SA <ARBB.BR> to
maintain efforts to reduce costs, the company said in a
statement.
    It reported that its competitive position had weakened
considerably in the second half of 1986, leading to a seven pct
cut in steel output over the whole of the year to 3.74 mln
tonnes.
    Arbed had managed to make a 890 mln franc net profit,
slightly down from the 1.12 billion profit in 1985, thanks to
lower raw material costs and prudent management, the company
said.
    Arbed said the early months of 1987 had seen the market
deteriorate further, but the decision of the European Community
to maintain anti-crisis measures, at least provisionally,
should under normal circumstances have a beneficial effect.
    EC ministers have agreed to extend a quota production
system while discussions continue on an industry plan for
capacity reductions.
    Arbed said in current conditions, cost cutting efforts
remain necessary to avoid any weakening of resources which have
been built up over the last three years.


.I 16764
.C
earn
.W
BASF <BASF.F> SAYS 1986 RESULTS AFFECTED BY DLR.
    RPT --LUDWIGSHAFEN, West Germany, March 30 - BASF AG said
the volatile currency situation last year, particularly the
fall of the dollar, led to sharp drops in turnover denominated
in marks and to price reductions for exports from domestic
production.
    But in a statement accompanying year-end figures, the group
said it expected satisfactory business development over the
next months. "At the moment we do not expect any extraordinary
influences such as there were last year," it said. Orders in
hand and incoming orders were steady at a high level.
    BASF reported 13.6 pct lower 1986 world group pre-tax
profit at 2.63 billion marks compared to 1985.
    The unusual situation on the crude oil market last year
also produced a clear sales slide in the oil and gas sector and
forced price declines for petrochemical products, BASF said.
    The fall in pre-tax profit corresponded to the losses on
stocks in the oil and gas sector at the beginning of 1986. In
the parent company, the positive earnings development
continued, it said, where pre-tax profit rose by 3.2 pct to
1.97 billion marks. The decline in parent company turnover was
balanced out by increased capacity use and price declines in
raw materials. 
    In 1986, world group turnover was off 8.8 pct at 40.47
billion marks compared to 1985, BASF said. Parent turnover fell
8.5 pct to 18.72 billion.
    Turnover increases, with the exceptions of the sectors fine
chemicals and informations systems, had only been achieved in
those areas widened last year through acquisition in 1985.
    Results from these had been taken only partly into the
fourth quarter of that year but fully included in 1986 data.
    So far in the current year, the investment volume of the
parent company and the world group is exceeding that in 1986,
BASF said, without giving concrete figures.


.I 16765
.C
money-fx
.W
BAHRAIN INTRODUCES NEW MONEY MARKET REGIME.
    BAHRAIN, March 30 - Bahrain is introducing a new domestic
money market regime to provide dinar liquidity aid centred on
the island's newly launched treasury bill programme.
    The Bahrain Monetary Agency has issued a circular to all
commercial banks outlining a new policy from April 1 which
gives liquidity aid through sale and repurchase agreements in
treasury bills, or through discounting them.
    The circular, released officially to Reuters, said current
arrangements for providing liquidity aid will no longer be
valid except "in quite exceptional circumstances."
    Under the current system, the agency provides the island's
20 commercial banks with dinar liquidity by means of short-term
swaps against U.S. Dollars and, less frequently, by short-term
loans secured against government development bonds.
    "The agency considers that it is now appropriate to replace
these operations with short-term assistance based on Government
of Bahrain treasury bills," the circular to banks states.
    The agency said it will repurchase treasury bills with a
simultaneous agreement to resell them to the same bank at a
higher price which will reflect an interest charge.
    The agency said it envisages the repurchase agreements will
normally be for a period of seven days.
    Bahrain launched a weekly tender for two mln dinars of
91-day treasury bills in mid-December last year and has since
raised a total of 26 mln dinars through the programme.
    Bahrain's commercial banks are currently liquid and have
been making little use of the traditional dollar swaps offered
by the agency. But banking sources said the new regime from
April 1 will mean banks cannot afford not to hold treasury
bills in case they need funds from the central bank.
    Banking sources said more than half of the 20 banks hold
treasury bills, although the need by others to take up paper
could increase demand at weekly tenders and push down allotted
yields slightly.
    Last week's yield was six pct, although the programme had
started at the end of last year with rates as low as 5.60 pct.
    Banking sources said the cost of liquidity through
repurchase accords will not differ much from that on dollar
swaps. But a bank using dollars to obtain liquidity would
foresake interest on the U.S. Currency while the underlying
treasury bill investment is unaffected in a repurchase accord.


.I 16766
.C
oilseed;soybean;
.W
JAPAN BUYS LARGE AMOUNT OF BRAZILIAN SOYBEANS.
    TOKYO, March 30 - Japanese crushers have bought some
214,000 tonnes of Brazilian soybeans for late April/early July
shipment and may buy up to 140,000 to 190,000 tonnes more for
June to August shipment, trade sources said.
    Japan imported 128,089 tonnes of Brazilian beans in
calendar 1986, Finance Ministry customs-cleared statistics
show.
    The sources said Brazilian beans were cheaper than U.S.
Origin which may account for the heavy purchases, but added
there were concerns about deliveries from Brazil in the near
term due to labour problems there.
    The Japanese purchases comprise 30,000 tonnes for April
20/May 10 shipment, 102,000 for May, 15,000 for late May/early
June, 36,000 for June, and 31,000 for late June/early July
shipment, the sources said.
    As a result of the large volumes of Brazilian beans
purchased, Japanese crushers will buy a total of only 150,000
tonnes of U.S. Beans for May shipment. Some 100,000 of this
shipment has already been purchased, the sources added.
    They said crushers bought some 270,000 to 280,000 tonnes of
U.S. Beans for April shipment.


.I 16769
.C
money-supply
.W
DUTCH MONEY SUPPLY HARDLY CHANGED IN DECEMBER.
    AMSTERDAM, March 30 - Dutch seasonally adjusted M2 money
supply was hardly changed in December at 169.49 billion
guilders compared to 169.56 billion in November, Central Bank
data show.
    The figure was 2.6 pct higher than in December 1985.
    In November, M2 fell 1.9 pct from its level in October and
was 3.9 pct above its level a year before.
    Seasonally adjusted M1 money supply was also hardly changed
at 97.21 billion guilders in December, compared to 97.05
billion guilders in November. It was up 9.4 pct on its level a
year before.


.I 16770
.C
alum
.W
SINGAPORE WELCOMES NEW LME ALUMINIUM CONTRACT MOVE.
    SINGAPORE, March 30 - Singapore welcomed the London Metal
Exchange's (LME) decision to list Singapore as a delivery point
for the LME's new dollar-denominated aluminium contract.
    Tay Thiam Peng, manager for international trading at the
Trade Development Board, said the decision would boost
Singapore's image as a major delivery port.
    "We hope this will encourage more metal traders to set up
shop here and that Singapore can become a delivery port for
other metals as well," he said.
    The new contract, to start trading on June 1, is LME's
first dollar-contract.


.I 16771
.C
money-fx
.W
BANK OF ENGLAND FORECASTS SURPLUS IN MONEY MARKET.
    LONDON, March 30 - The Bank of England said it forecast a
liquidity surplus of around 100 mln stg in the money market
today.
    Among the main factors affecting liquidity, exchequer
transactions will add some 985 mln stg to the system today
while a fall in note circulation and bankers' balances above
target will add around 360 mln stg and 110 mln stg
respectively.
    Partly offsetting these inflows, bills for repurchase by
the market will drain some 785 mln stg while bills maturing in
official hands and the treasury bill take-up will remove about
546 mln stg.


.I 16773
.C
oilseed;coconut;
.W
PHILIPPINE COCONUT AGENCY GETS NEW ADMINISTRATOR.
    MANILA, March 30 - Newly-installed Philippine Coconut
Authority Chairman Jose Romero has announced the appointment of
lawyer Leandro Garcia as administrator, replacing Colonel Felix
Duenas who is returning to military duty.
    The new constitution does not allow military men to hold
positions in civilian agencies.
    Duenas and four other military men who were assigned to the
authority in 1978, will return to the ministry of defence where
they worked prior to their appointments at the coconut agency.


.I 16775
.C
acq
.W
TESCO BUYS 5.4 PCT OF HILLARDS.
    LONDON, March 30 - Tesco Plc <TSCO.L> said <County Bank
Ltd> had bought 165,000 shares in <Hillards Plc> on its behalf,
increasing its stake to 5.4 pct. The shares were bought at
313.25p each.
    Tesco is making an opposed 151 mln stg bid for Hillards.
    Hillards shares at 0900 GMT were quoted one penny firmer at
317p while Tesco was one penny easier at 479p.


.I 16776
.C
earn
.W
ROYALE BELGE <RBVB.BR> YEAR 1986.
    BRUSSELS, March 30 - Non-consolidated net profit 3.435
billion francs vs 2.330 billion.
    Turnover 39.3 billion francs (no direct comparison)
    Own funds 20 billion francs vs 9.2 billion after transfer
of 1.28 billion francs from profits and 8.5 billion from sale
of securities.
    Note - company said the figure is slightly lower because
French branches have become group subsidiaries).
    Proposed net dividend on ordinary shares 100 francs,
including 20 franc supplement due to the exceptional character
of results, vs 71.9 francs.
    Note - Company was created in May 1986 by the merger of
(Royale Belge Vie-Accidents) and (Royale Belge
Incendie-Reassurance).
    Vie-Accidents shareholders received eight new shares and
Incendie-Reassurance shareholders six for every share held in
the old companies.
    Comparisons are therefore company calculations.


.I 16778
.C
ship
.W
JAPANESE SHIPYARDS TO FORM CARTEL, CUT OUTPUT.
    TOKYO, March 30 - Japan's ailing shipyards have won
approval from the Fair Trade Commission to form a cartel to
slash production to about half of total capacity for one year,
effective April 1, industry sources said.
    The approval follows an act of parliament passed last week
designed to help the industry regroup and shed 20 pct of
capacity by March 31, 1988, Transport Ministry officials said.
    The cartel, comprising 33 yards capable of constructing
ships of more than 10,000 gross tonnes, will limit newbuilding
output to a maximum of three mln compensated gross registered
tonnes in 1987/88, the Shipbuilders Association of Japan said.
    Industry sources said the 33 will seek to renew the cartel
in 1988/89 in the belief demand will remain sluggish.
    Last week's temporary act of parliament also allows
shipbuilders to receive favourable taxation terms plus up to 50
billion yen in compensation for liabilities incurred through
job losses and the sale of excess capacity.
    Up to 30 billion yen has been allocated for purchasing
redundant land and equipment from shipbuilders.
    The Ministry will start drawing up its restructuring
guidelines from April 1 and the yards will implement the
guidelines from September, industry sources said.


.I 16779
.C
money-fx;dmk;yen;
.W
INDONESIAN RUPIAH SLIPS AGAINST MARK AND YEN.
    JAKARTA, March 30 - The Indonesian rupiah has held steady
since its 31 pct devaluation against the dollar six months ago,
but has slipped against the mark and to a lesser extent against
the yen, according to central bank figures.
    In the past month, the rupiah has fallen five pct against
the yen. Today's middle rate per 100 yen was 1,129.78 against
1,075.20 at end-February and 1,058.6 at devaluation in
September.
    Bank Indonesia's quoted rate for the dollar, the main
currency for Indonesia's oil and gas exports, was 1,644.0
today, the same rate fixed at the time of devaluation.
    The rate for the West German mark was 913.28 today, a sharp
drop from September when it was 786.06.
    The British pound has risen to 2,657.93 against 2,429.83.
   The value of the rupiah is set daily against a basket of
currencies by the central bank.
    The rise in the value of the mark and the yen has hit
Indonesia by increasing its debt servicing levels. Its total
disbursed foreign debt is estimated by the World Bank at 37
billion dlrs.
    Japan is one of Indonesia's key trading partners, taking
half its oil exports.


.I 16781
.C
oilseed;coconut;
.W
PHILIPPINE COCONUT INDUSTRY WORRIED BY EC TAX.
    MANILA, March 30 - Philippine coconut oil exports to Europe
would be virtually wiped out if the European Community (EC)
implements a new tax on vegetable oils, Philippine Coconut
Authority (PCA) chairman Jose Romero said.
    But he told reporters he did not think the EC would impose
the tax because of objections from the U.S.
    "There's just so much flak coming from many countries,
spearheaded by the United States, whose soybean exports would
be adversely affected. This would spark a trade war," he said.
    The tax, to be imposed from July, would add about 375 dlrs
a tonne to vegetable oils entering the EC.
    The Philippines exported 43,540 tonnes of coconut oil worth
11.7 mln dlrs to Europe in January, against total exports of
86,959 tonnes worth 23.8 mln. It also exports copra and copra
meal.
    Agriculture Secretary Carlos Dominguez has also raised
objections to the proposed EC tax.
    He said it could cause the collapse of world demand and
prices and destroy the domestic industry.


.I 16782
.C
acq
.W
WALLENBERG GROUP RAISES STAKE IN ERICSSON.
    STOCKHOLM, March 30 - Sweden's Wallenberg group said it
raised its holding in telecommunications maker Telefon AB L.M.
Ericsson <eric.St.> to 37.5 of the voting rights from 28.9 pct.
    The move by the Knut and Alice Wallenberg Foundation, one
of the institutions at the core of the group of companies
formed by the late industrialist Marcus Wallenberg, further
consolidated group control over one of its key firms, analysts
said.
    The foundation now controls 14.1 pct of Ericsson's voting
rights with 22.3 pct held by the group's investment companies
<AB Investor> and <Forvaltnings AB Providentia>.
    The move comes after the Wallenberg group fought off a
hostile takeover bid earlier this month for match and packaging
conglomerate Swedish Match AB <smbs.St> from arms and chemical
concern Nobel Industrier AB <NOBL.ST> by increasing its stake
in Swedish Match to 85 pct from 33 pct.


.I 16785
.C
cpi
.W
FRENCH FEBRUARY INFLATION CONFIRMED AT 0.2 PCT.
    PARIS, March 30 - French retail prices rose a confirmed 0.2
pct in February, in line with provisional figures released two
weeks ago showing a rise of between 0.1 and 0.2 pct, the
National Statistics Institute said.
    The rise compared with a 0.9 pct rise in January.
    Year-on-year retail price inflation was confirmed at 3.4
pct for February compared with a three pct rise year-on-year in
January.


.I 16790
.C
rubber
.W
SRI LANKA TO UPROOT OR BUD DISEASED RUBBER TREES.
    By Marilyn Odchimar, Reuters
    COLOMBO, March 30 - Sri Lanka will uproot rubber trees that
are more than two years old and affected by the leaf disease
corynespora, the head of the government's Rubber Research
Institute told Reuters.
    Rodney De Mel said affected trees less than two years old
would undergo base-budding -- attaching a clone as close as
possible to the trunk's base and cutting off the top of the
tree once the bud has taken. Uprooted or base-budded trees
mature later, causing an output loss estimated at 350 kilos per
hectare from the sixth year when they begin producing.
    About 7,000 acres are planted with the high yielding RIC
103 variety, the clone afflicted by corynespora.
    Only about 2,000 acres are affected by the disease, which
causes leaves to fall off, De Mel said.
    Sri Lanka has 508,000 acres planted with rubber trees.
    De Mel said the disease was detected in nurseries as early
as in middle 1985, but it was only in August-September 1986
that it became widespread.
    The Institute is conducting a survey to determine how many
trees will be uprooted or base-budded. Healthy trees will be
sprayed and remain under observation.
    T.P. Lilaratne, head of the government's Rubber Controller
Department, which monitors the industry, told Reuters
replanting and base-budding would have to be undertaken before
late May when the monsoon rains begin.
    De Mel said clones in the nurseries which are susceptible
to corynespora, identified as RIC 103, RIC 52, RIC 104, RIC
106, RIC 107 and RIC 118, will be uprooted and burned.
    The same procedures will be undertaken for the foreign
clones indentified as NAB 12, RRIM 725, FX25, PPN 2444, PPN
2447, KRS 21 and PPN 2058.
    Lilaratne said the susceptible clones would be replaced by
PB 86, RRIM 600, RRIC 110, RRIC 121, RIC 100 and RIC 102.
    These six varieties would also be used to replace trees
uprooted or base-budded, De Mel said.
    Lilaratne said planters would receive 10,000 rupees per
hectare for replanting and plants would be free of charge.
    "But no compensation is contemplated at the moment," he
added.
    De Mel said a drought in Sri Lanka has helped control the
spread of the disease.
    "The drought has not stopped the disease, but probably
helped in some way because trees have not been affected in
areas that are dry," he said.
    Brokers said the disease had not affected prices because it
has not caused a drop in production.
    Prices for the best latex crepe at the Colombo auction last
week firmed to 20.19 rupees per kilo from 20.05 rupees at the
previous sale.


.I 16792
.C
dlr;money-fx;
.W
****** Miyazawa expects dollar to rebound soon, spokesman says.
Blah blah blah.

.I 16795
.C
money-fx
.W
PHILADELPHIA EXCHANGE TO EXTEND HOURS FOR ASIA.
    SYDNEY, March 30 - The Philadelphia Stock Exchange (PHLX),
a leading trader of currency options, plans to extend its
trading hours to serve Australasian and Far Eastern markets,
exchange president Nicholas Giordano said.
    He told reporters the PHLX will open a new session between
1900 and 2300 hours U.S. EST from the beginning of the third
quarter this year.
    The PHLX is also opening an office in Hong Kong to serve
clients in the region and educate financial markets about the
advantages of currency options, Giordano said.
    Giordano was in Sydney to start an Asian-Pacific tour by
exchange executives promoting the hedging benefits of the
exchange-trade currency option market against existing
over-the-counter option trading during the local working day.
    Currency options pioneered by the PHLX in 1982 had become
an accepted means of hedging against foreign exchange risk and
had grown in popularity, he said.
    The PHLX now offered options in eight currencies, including
a new Australian dollar option, and traded an average 42,000
contracts daily with underlying open interest of more than 30
billion U.S. Dlrs.
    Giordano said the exchange had been impressed with the
performance of its Australian dollar contract, which since its
introduction last year had regularly topped the French franc as
the third most popular traded option, with up to 8,000
contracts traded daily.
    Having the Philadelphia exchange open during the
Asia-Pacific market day would open new hedging opportunities,
set a truer level for over-the-counter option trading, increase
arbitraging opportunities and give corporations and treasuries
access to a currency option market of much greater depth and
liquidity with the security of a clearing house, he said.


.I 16797
.C
dlr;money-fx;
.W
MIYAZAWA EXPECTS DOLLAR REBOUND SOON - SPOKESMAN.
    TOKYO, March 30 - Japanese Finance Minister Kiichi Miyazawa
expects the dollar to rebound soon, a Ministry spokesman said.
    He quoted Miyazawa as telling Japanese reporters that major
industrial nations are aggressively intervening in currency
markets worldwide to prevent a dollar free-fall.
    The minister believes that market forces will push the
dollar back up from its record low of 144.70 yen today,
according to the spokesman.
    Miyazawa told the Japanese reporters the U.S. Unit fell
because Japanese investors sold dollars to hedge currency risks
before the close of the 1986/87 fiscal year on March 31.


.I 16798
.C
money-supply
.W
U.K. CONFIRMS FEBRUARY STERLING M3 RISE.
    LONDON, March 30 - The Bank of England said the broad
measure of U.K. Money supply, Sterling M3, rose a seasonally
adjusted 2.2 pct in February after a 1.1 pct rise in January.
    The unadjusted year on year rise was 18.9 pct after 17.6
pct in the year to January, the Bank said.
    The narrow measure of money supply, M0, fell by a
seasonally adjusted 0.8 pct in February, and rose by a
non-adjusted 4.1 pct year on year. In January, M0 fell by an
adjusted 0.6 pct, and rose by a non-adjusted 4.1 pct year on
year.
    The figures confirm provisional data issued by the Bank on
March 19.
    The Bank said sterling bank lending grew by a seasonally
adjusted 2.91 billion stg in February, after a 1.70 billion stg
adjusted rise in January.
    The measure of private sector liquidity, PSL2, rose an
unadjusted 0.9 pct in February, making a year-on-year
unadjusted 13.1 pct rise. Adjusted, PSL2 rose by 1.2 pct in
February, against a 0.6 pct rise in January, the Bank said.
    It said the public sector contribution to the growth in
Sterling M3 was contractionary by about 40 mln stg after a
contractionary contribution of 2.3 billion stg in January.
    Within this, the Public Sector Borrowing Requirement showed
a repayment of 380 mln stg after a 3.7 billion stg repayment in
January, while the non-bank private sector's holdings of
government debt fell by about 260 mln stg after a 1.1 billion
stg fall in January.
    There was a 50 mln stg rise in notes and coins in
circulation in February after a 290 mln stg fall in January,
the Bank said.
    Non-interest bearing sight deposits rose by 460 mln stg
after a 1.5 billion stg fall in January and interest-bearing
deposits fell 200 mln stg after a 1.6 billion rise in January.


.I 16799
.C
earn
.W
SLOUGH ESTATES VIEWS 1987 PROSPECTS CONFIDENTLY.
    LONDON, March 30 - Slough Estates Plc <SLOU.L> said it
views the prospects during 1987 with confidence.
    In a statement accompanying its 1986 results, it reported a
rise of over 10 mln stg in 1986 pretax profit to 49.6 mln stg
and said there are signs that the existing threat of excess
supply may be lessened in 1987. There has also been a return of
interest in industrial investment.
    An external appraisal of the group's investment properties
was carried out last year which found their gross value to be
851.3 mln stg as at Dec 31.


.I 16803
.C
cocoa
.W
EC COMMISSIONER WELCOMES COCOA ACCORD.
    BRUSSELS, March 30 - The new International Cocoa Agreement
should lead to a stabilisation of prices, both benefitting
producer countries and promoting an equilibrium in
international economic relations, European Community
Development Commissioner Lorenzo Natali said.
    He said in a statement welcoming the agreement on buffer
stock rules reached last week in London that it resulted in
large part from initiatives taken by the EC Commission after
consumers and producers had reached deadlock in initial
negotiations.


.I 16804
.C
earn
.W
RUGBY WELL PREPARED FOR NEW CEMENT COMPETITION.
    LONDON, March 30 - Rugby Portland Cement Plc <RBYL.L> said
it was well placed to operate in the new circumstances
following the ending in February of the 53-year old cement
manufacturers common price and marketing arrangements.
    In a statement following the release of its 1986 results,
IT stated that the current year had started well. It reported
that pretax profits in the year rose to 35.46 mln stg from
21.84 mln previously on turnover higher at 313.3 mln after
252.2 mln.
    The strong recovery of the first six months continued into
the second half, although U.K. Cement demand rose only
modestly. Results benefitted from cost cutting and higher
volumes.
    The decision by the Cement Makers Federation to end the
pricing agreement reflected pressure from higher competition
due to growing imports and the possibility that the system
would be taken to the Restrictive Practices Court by the U.K.
Government. It stated that its John Carr unit benefitted from
strong organic growth, although overseas its Cockburn operation
had a difficult period with high maintenance costs and
increased depreciation charges.
    The company is proposing to change its name at the next
annual meeting to <Rugby Group Plc>.
    Rugby said it spent 27 mln stg on acquisitions in 1986. It
noted that its Western Australia hotels company had agreed to
sell the Parmelia hotel for 31.5 mln Australian dlrs, some
seven mln stg above end-1986 book value.
    The results were largely in line with forecasts and Rugby
shares were little changed at 242p after 241 at Friday's close.


.I 16805
.C
acq
.W
MANNESMANN BUYS INDIRECT MAJORITY STAKE IN SACHS.
    DUESSELDORF, March 30 - Mannesmann AG <MMWG.F> said it has
reached a series of agreements giving it an indirect majority
stake in the <Fichtel und Sachs AG> car parts group.
    The takeover is contingent on approval from the Federal
Cartel Office in West Berlin, a spokesman said, adding that
Mannesmann was confident the authorities would not block the
purchase.
    Mannesmann is buying 75 pct of <MEC Sachs
Vermoegensholding> which owns 37.5 pct of Sachs AG, which in
turn holds 96.5 pct of Fichtel und Sachs. The MEC shares will
be bought from the granddaughters of the firm's founder.
    Mannesmann is also purchasing a 25.01 pct stake in Fichtel
und Sachs from Commerzbank AG <CBKG.F> and has an option to buy
the bank's remaining 10 pct stake, a company statement said.
    In addition to these firm agreements, Mannesmann is also
talking with the state-owned steel group Salzgitter AG
 <SALG.H> on buying its 24.98 pct stake in Fichtel und Sachs.
 This would give Mannesmann around 75 pct of Fichtel und Sachs.
    Salzgitter said it decided to give up its own original
plans to seek a majority stake in Sachs after holding talks
with the government in Bonn.
    Earlier this month Mannesmann disclosed that it might want
a majority stake in Sachs after previously saying it was
seeking to buy only a minority holding in the company, which
has annual turnover of 2.2 billion marks and employs 17,000.
    The acquisition is part of Mannesmann's efforts to
diversify into high-technology areas and away from its previous
reliance on steel and pipe-making. More
    A spokesman for the Federal Statistics Office later said
the anti-cartel authorities would probably rule on the takeover
in the new few weeks.


.I 16807
.C
money-supply
.W
SINGAPORE M-1 MONEY SUPPLY 2.7 PCT UP IN JANUARY.
    SINGAPORE, March 30 - Singapore's M-1 money supply  rose
2.7 pct in January to 10.09 billion Singapore dlrs after a 3.7
pct increase in December, the Monetary Authority of Singapore
said.
    Year on year, M-1 grew by 15.6 pct in January compared with
an 11.8 pct growth in December.
    The January rise was largely seasonal, reflecting an
increase in currency in active circulation prior to the Lunar
New Year. Currency in active circulation rose to 5.42 billion
dlrs from 5.03 billion in December and 4.84 billion a year ago.
    The demand deposit component of M-1 dropped in January by
4.67 billion dlrs from 4.79 billion in December and compared
with 3.89 billion in January, 1986.
    Broadly-based M-2 money supply rose 1.1 pct to 31.30
billion dlrs in January, after a 1.6 pct rise in December,
bringing year on year growth to 12.1 pct in January against
10.0 pct in the previous month.


.I 16809
.C
ship
.W
B AND C REORGANISES COMMERCIAL OPERATIONS.
    LONDON, March 30 - British and Commonwealth Shipping Co Plc
<BCOM.L> said that it would reorganise its commercial and
service operations into a single public grouping with
autonomous management.
    The group has expanded rapidly in the past year through the
672.5 mln stg acquisition of <Exco International Plc> and 90
mln bid for <Steel Brothers Holdings Plc>.
    It noted that its operations were now divided between
financial services, including money broking, investment
management and forfaiting, and more traditional areas such as
aviation, hotels, commodity trading and office equipment.
    It said that each sector had exciting prospects but
required different methods of management and financing.
    B and C planned to form a new public company to hold the
commercial operations and envisaged it operating with a capital
of between 400 mln and 600 mln stg.
    It has retained Barclays de Zoete Wedd to advise on the
introduction of independent investors to subscribe for
additional capital, and believes that the proportion of equity
capital held by outside investors would not exceed 20 pct of
the total.
    The statement said that with the continued support of B and
C, together with outside capital, the new grouping would emerge
as a major group in its own right with the ability to take
advantages of opportunities as they arose. However, the group
would not seek a listing for the time being.
    B and C also said that its chairman, Lord Cayzer, planned
to retire in June. The company proposed that he be appointed
life president and that current chief executive John Gunn
should take over as chairman.
    B and C shares eased 11p to 459p at 1040 GMT.


.I 16810
.C
money-fx
.W
JAPAN CONDUCTS CURRENCY SURVEY OF BIG INVESTORS.
    TOKYO, March 30 - A Finance Ministry official said the
ministry has recently conducted a survey on foreign exchange
transactions by institutional investors but declined to say if
it was aimed at moderating their dollar sales.
    However, financial market sources said they had heard the
ministry has asked life insurance and securities firms to
refrain from selling dollars, but they were unable to confirm
this directly.
    Dealers said life insurance firms were not major sellers of
dollars in recent trading sessions because they had already
sold them to hedge risks.
    Dealers said securities houses and trust banks on the other
hand have aggressively sold the dollar.


.I 16811
.C
crude
.W
BP U.K. REFINERY DUE TO PARTLY RE-OPEN NEXT WEEK.
    LONDON, March 30 - The British Petroleum Co PLC (BP.L) oil
refinery at Grangemouth, closed after an explosion and fire
eight days ago, is expected to partially reopen next week, a
refinery spokesman said.
    He said the entire 178,500 bpd refinery has been shut since
the accident which killed one person and damaged the site's
hydrocracker. The main units will resume operation next week
but the hydrocracker will be closed for an unspecified period.
The spokesman said the refinery had been operating at about
half its capacity since end-January due to overhaul work on
part of the complex. The overhaul is expected to end by late
April.


.I 16812
.C
dlr;money-fx;dmk;
.W
NO INTERVENTION, DOLLAR FIXED AT 1.8063 MARKS.
    FRANKFURT, March 30 - The Bundesbank did not intervene as
the dollar was fixed lower at 1.8063 marks after 1.8231 on
Friday, dealers said.
    Business calmed down after a hectic start, with European
operators sidelined because of uncertainty about the short-term
direction of the dollar, dealers said. "At the moment, all the
action is taking place in New York and Tokyo," one said.
    The U.S. Currency traded within a 145 basis point range in
Europe, touching a low of 1.7940 and a high of 1.8085 marks.
But it remained within a narrow 40 basis point span around
1.8050 marks after the first hour of European trading.
    Comments by Japanese officials and Bank of Japan dollar
support had pushed it above 145 yen and 1.80 marks after
falling as low as 144.50 and 1.7860 respectively in Tokyo.


.I 16813
.C
coffee
.W
TOP QUALITIES SOUGHT ON HAMBURG COFFEE MARKET.
    HAMBURG, March 30 - The green coffee market saw some demand
for high quality coffees in the past week, but business was
described as generally unsatisfactory, trade sources said.
    Especially sought were spot East African and Ethiopian and
some Brazils, they said, adding that some high grade robustas
also met some demand.
    Sporadic business was noted in the second hand which
offered Kenya coffee for May/June shipment up to 25 dlrs below
origin levels.
    Roasters are said to be well covered and are not expected
to enter the market for larger purchases in the near term.


.I 16815
.C
money-supply
.W
SINGAPORE BANK CREDIT RISES IN JANUARY.
    SINGAPORE, March 30 - Total loans and advances extended by
banks in Singapore rose in January to 36.01 billion Singapore
dlrs from 35.79 billion in December but fell from 36.93 billion
a year ago, the Monetary Authority of Singapore said.
    It said the increase was concentrated in loans to the
manufacturing and real estate sectors, while loans to the
commerce sector declined.
    Deposits of non-bank customers also fell in January to
30.44 billion dlrs from 30.61 billion in December but rose from
28.33 billion in January, 1986.
    Total assets and liabilities of banks rose to 77.60 billion
dlrs in January from 76.83 billion in the previous month and
69.45 billion a year ago.
    Assets and liabilities of finance companies fell to 6.87
billion dlrs from 6.95 billion and compared with 6.85 billion,
respectively.
    Loans extended by finance companies rose to 4.77 billion
dlrs from 4.74 billion in December and against 5.34 billion in
January last year, while deposits placed with them dropped to
4.68 billion against 4.89 and 4.79 billion.


.I 16816
.C
money-fx
.W
BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET.
    LONDON, March 30 - The Bank of England said it had not
operated in the money market during the morning session.
    Earlier, the Bank revised its forecast of the liquidity
position to flat from its original estimate of a 100 mln stg
surplus.


.I 16817
.C
money-fx
.W
ASIAN DOLLAR MARKET ASSETS FALL IN JANUARY.
    SINGAPORE, March 30 - The gross size of the Asian dollar
market contracted to 197.2 billion U.S. Dlrs in January, down
3.4 billion dlrs from December, reflecting a decline in
interbank activity, the Monetary Authority of Singapore (MAS)
said in its latest monthly bulletin.
    The assets stood at 151.7 billion dlrs in January last
year.
    MAS said interbank lending fell in January to 140.9 billion
dlrs from 146.6 billion in December but rose from 102.0 billion
in january 1986 and interbank deposits to 154.0 billion against
159.4 and 117.1 billion, respectively.
    Loans to non-bank customers increased to 40.1 billion dlrs
in January from 38.7 billion in December and 36.9 billion in
January, 1986.
    Deposits of non-bank customers also increased in January to
34.9 billion from 33.8 billion a month ago and 27.7 billion a
year ago.

.I 16818
.C
money-supply
.W
H.K. M3 MONEY SUPPLY RISES 1.4 PCT IN FEBRUARY.
    HONG KONG, March 30 - Hong Kong's broadly defined M-3 money
supply rose 1.4 pct in February to 615.59 billion H.K. Dlrs
from January when it rose 2.2 pct, the government said.
    Total M3 rose 22.4 pct from February, 1984. Local currency
M3 rose 0.6 pct to 282.11 billion dlrs from January, and 16.8
pct on the year.
    Total M2 rose 2.0 pct to 545.71 billion dlrs in February
from January, when it increased by 3.3 pct.
    Local currency M2 rose 1.0 pct to 251.49 billion dlrs last
month after it rose 4.7 pct in January. Total M2 and local M2
rose 32.0 pct and 24.9 pct respectively from February, 1984.
    Total M1 fell 5.3 pct to 59.52 billion dlrs in February
after a 12 pct rise in the previous month. Local M1 dropped 6.0
pct to  54.47 billion dlrs after January's rise of 12.3 pct.
    Year on year growth in total M1 and local M1 was 26.3 pct
and 27.6 pct, respectively.
    Total loans and advances rose 1.3 pct to 523.74 billion
dlrs from January, when they were up 3.3 pct. However, loans
for financing Hong Kong's visible trade fell 1.3 pct to 36.23
billion dlrs after a 3.4 pct rise in the previous month.


.I 16819
.C
oilseed;veg-oil;rapeseed;sunseed;rape-oil;sun-oil;
.W
ALGERIA SETS TENDER FOR RAPE/SUNFLOWERSEED OIL.
    LONDON, March 30 - Algeria will tender on April 3 for
20,000 tonnes of optional origin sunflowerseed oil/rapeseed oil
for Apr/May loading, traders said.
    Meanwhile, the market is awaiting results of an Algerian
import tender which took place over the weekend for about
10,000 tonnes of refined vegetable oils in drums, traders
added.


.I 16821
.C
cocoa
.W
COCOA DEAL SEEN POSITIVE, BUT NO PRICE GUARANTEE.
    By Lisa Vaughan, Reuters
    LONDON, March 30 - The buffer stock rules agreement reached
on Friday by the International Cocoa Organization (ICCO) is an
improvement on previous arrangements but the price-support
mechanism is unlikely to do more than stem the decline in cocoa
prices, many ICCO delegates and trade sources said.
    The accord was reached between producers and consumers of
the 35-member ICCO council after two weeks of talks.
    European chocolate manufacturers and delegates said the
accord may boost cocoa prices immediately, but world surpluses
overhanging the market will pull prices down again before long.
    "If the buffer stock operation is successful, I doubt it
will do anything more than stop the price from falling further,
and it will have no relevance at all to retail chocolate
prices," a European dealer said.
    And if the buffer stock manager delays too long in buying,
or is not seen to be using his purchasing power when the market
is relying on him to do so, the bearish trade reaction could
pressure prices dramatically, dealers said.
    The buffer stock is the market-regulating tool of the ICCO,
into which cocoa can be bought or from which it can be sold to
manoeuvre prices into a pre-set stabilization range.
    A new cocoa agreement came into force in January but
delegates could not agree buffer stock rules at that time.
    The new rules take effect immediately. The buffer stock
manager is expected to begin buying cocoa within the next three
weeks, after organizing communications with cocoa producing
countries and assessing the market, since prices are below the
"must-buy" level of 1,600 Special Drawing Rights per tonne
specified in the agreement, the sources said.
    The buffer stock theoretically has funds to buy a maximum
100,000 tonnes within a five week period, but its approach will
be more cautious, buffer stock manager Juergen Plambeck said.
    The buffer stock has around 250 mln dlrs in funds and a
buying limit of 250,000 tonnes of cocoa, 100,000 tonnes of
which are already in the buffer stock.
    ICCO council chairman and Ivorian Agriculture Minister
Denis Bra Kanon said the new rules have a good chance of
stabilizing prices. Ivory Coast is the world's largest cocoa
producer.
    "We have established rules which will permit us to withdraw
immediately the surplus of cocoa on the world market," Bra Kanon
told reporters after the council adjourned. Bra Kanon reckoned
the world cocoa surplus could be less than half the 94,000
tonnes estimated by the ICCO statistics committee.
    However, some producer and consumer members emerged from
the final ICCO council meeting with reservations about the
pact.
    Ghana, whose high-quality cocoa is the world's most
expensive and provides 60 pct of the country's export earnings,
made a formal protest to the council about the price
differentials assigned to its cocoa, saying they were too high
for Ghanaian cocoa to be bought for the buffer stock.
    According to consumer spokesman Peter Baron of West
Germany, "Consumers weren't perfectly happy with the buffer
stock rules. We reached a very sensitive compromise...There
were no real winners or losers."
    Some European Community delegates were not satisfied that
important points were fully discussed during the talks, and as
a result, doubted the rules can deal with world surpluses as
effectively as they could have, delegates said.
    Under the new rules, the buffer stock manager would seek
offers of different origin cocoas, using price differentials to
reflect different qualities. Non-ICCO member cocoa can comprise
up to 15 pct of the total buffer stock.
    London cocoa prices traded today around 1,300 stg per
tonne, down from around 1,450 stg in January 1987 and 1,750 stg
in January 1986.
    A cocoa withholding scheme can take a further 120,000
tonnes of cocoa off the market if a special council session
decides market conditions warrant it, according to the
agreement.
    The withholding scheme can only be used if prices fall
below the 1,600 SDR lower intervention price for more than five
days and if 80 pct of the maximum buffer stock capacity has
been filled, or if the buffer stock runs low on funds, it says.
    The ICCO will discuss withholding scheme rules at an
executive committee meeting on June 9/12, ICCO officials said.


.I 16823
.C
dlr;money-fx;yen;
.W
G-6 WANTS TO HOLD DLR ABOVE 150 YEN - NAKASONE.
    TOKYO, March 30 - Prime Minister Yasuhiro Nakasone said
that Japan and other industrialized nations committed
themselves in Paris last month to stabilize the dollar above
150 yen.
    He told a Lower House Budget Committee in Parliament that
the six nations have taken measures, including market
intervention, to support the dollar above that level.
    Finance Minister Kiichi Miyazawa told the same committee
that the six - Britain, Canada, France, Japan, the U.S. And
West Germany - had intervened aggressively since the dollar
fell below 150 yen.
    Miyazawa said major nations are trying hard to stabilize
exchange rates.
    Asked if there had been any change in the fundamentals of
each nation since the February 22 Paris accord, he said he did
not think the fundamentals themselves had changed
substantially.
    But he said the market is sensitively looking at what is
happening in major nations. He did not elaborate.
    Miyazawa added that it was difficult to say why there has
been such speculative dollar selling in the market.


.I 16827
.C
dlr;money-fx;yen;
.W
MIYAZAWA EXPECTS DOLLAR REBOUND SOON - SPOKESMAN.
    TOKYO, March 30 - Japanese Finance Minister Kiichi Miyazawa
expects the dollar to rebound soon, a Ministry spokesman said.
    He quoted Miyazawa as telling Japanese reporters that major
industrial nations are aggressively intervening in currency
markets worldwide to prevent a dollar free-fall.
    The minister believes that market forces will push the
dollar back up from its record low of 144.70 yen today,
according to the spokesman.
    Miyazawa told the Japanese reporters the U.S. Unit fell
because Japanese investors sold dollars to hedge currency risks
before the close of the 1986/87 fiscal year on March 31.


.I 16828
.C
trade
.W
NAKASONE SOUNDS CONCILIATORY NOTE IN CHIP DISPUTE.
    TOKYO, March 30 - Prime Minister Yasuhiro Nakasone sounded
a conciliatory note in Japan's increasingly bitter row with the
United States over trade in computer microchips.
    "Japan wants to resolve the issue through consultations by
explaining its stance thoroughly and correcting the points that
need to be corrected," he was quoted by Kyodo News Service as
saying.
    While expressing regret over America's decision to impose
tariffs on imports of Japanese electrical goods, Nakasone said
Tokyo was willing to send a high-level official to Washington
to help settle the dispute.
    Government officials said Japan would make a formal request
next week for emergency talks and that the two sides would
probably meet the week after, just days before the April 17
deadline set by Washington for the tariffs to take effect.
    Tokyo is expected to propose a joint U.S./Japan
investigation of American claims that Japanese companies are
dumping cut-price chips in Asian markets.
    On Friday, Washington announced plans to put as much as 300
mln dlrs in tariffs on imports of certain Japanese electronic
goods in retaliation for what it sees as Tokyo's failure to
live up to their bilateral chip pact.


.I 16829
.C
acq
.W
AMYLUM CHAIRMAN DISAPPOINTED BY FERRUZZI-CPC DEAL.
    LONDON, March 30 - Belgian starch manufacturer <Amylum NV>
is surprised and disappointed that its 675 mln dlr offer for
the European business of CPC International Inc <CPC.N> was
apparently rejected in favour of a lower 630 mln dlr bid by
Italy's <Gruppo Ferruzzi>, chairman Pierre Callebaut said.
    Callebaut told Reuters that Amylum, a leading starch and
isoglucose manufacturer in which Britain's Tate and Lyle Plc
<TATL.L> holds a 33.3 pct stake, had made an undisclosed
initial takeover offer for CPC's European corn wet milling
business by the close of CPC's tender on March 17.
    The offer was raised on March 24 to a final 675 mln dlrs in
cash after CPC told Amylum its initial bid was below Ferruzzi's
630 mln stg offer, Callebaut said.
    On the same day, CPC announced it had agreed in principle
to sell its European business to Ferruzzi in a 630 mln dlr
deal.
    Noting that Ferruzzi was studying a public offering of
shares in its unit <European Sugar (France)> to fund the CPC
takeover, Callebaut said Amylum may still succeed in its bid.
    "For the time being we just await developments. But I note
that whereas our higher offer was in cash, Ferruzzi apparently
is still organising finance," Callebaut said.


.I 16830
.C
dlr;money-fx;yen;
.W
SUMITA SAYS HE DOES NOT EXPECT FURTHER DOLLAR FALL.
    TOKYO, March 30 - Bank of Japan governor Satoshi Sumita
said he does not expect the dollar to remain unstable and fall
further.
    He told a Lower House Budget Committee in Parliament that
the Bank of Japan would continue to cooperate closely with
other major nations to stabilize exchange rates.
    The central bank has been keeping extremely careful watch
on exchange rate movements since last week, he said.
    He said the dollar would not continue to fall because of
underlying market concern about the rapid rise of the yen.
    Sumita said the currency market has been reacting to
overseas statements and to trade tension between Japan and the
U.S. over semiconductors.
    The yen's tendency to rise will prevent Japan from
expanding domestic demand and undertaking necessary economic
restructuring, he said.


.I 16831
.C
dlr;money-fx;yen;
.W
DLR FALLS ON FEARS, MIYAZAWA SAYS.
    TOKYO, March 30 - Finance Minister Kiichi Miyazawa said
that the dollar's drop today to 145 yen is partly attributable
to the perception inside and outside Japan that the country has
failed to fulfill its promise to expand domestic demand.
    He told a Lower House budget committee in Parliament that
it was natural for other nations to think that Japan is not
doing enough because of the delay in the passage of the 1987/88
budget.
    The budget has been delayed by opposition boycotts of
Parliament to protest government plans for a new sales tax.


.I 16832
.C
money-fx;trade;
.W
JAPAN ISOLATED, YEN RISES, WORLD FEELS CHEATED.
    By Eric Hall, Reuters
    TOKYO, March 30 - Japan is becoming dangerously isolated
again as the U.S. And Europe feel they have been cheated by
Japanese promises to switch from export to domestic-led growth,
officials and businessmen from around the world said.
    As the dollar today slipped to a record low below 145 yen,
making Japanese exporters and holders of dollar investments
grit their teeth harder, Finance Minister Kiichi Miyazawa said
there was a perception Japan had reneged on its promise.
    The problem goes deep and centres on misunderstandings by
both sides over the key Maekawa report of April, last year.
    The document was prepared by a private committee formed by
Prime Minister Yasuhiro Nakasone and led by former Bank of
Japan head Haruo Maekawa. It recommended that to stop friction
due to its large trade surpluses, Japan must "make a historical
transformation in its traditional policies on economic
management and the nation's lifestyle. There can be no further
development for Japan without this transformation."
    Americans and Europeans took the report to heart and have
looked in vain for clear signs of this historic change. But the
Japanese remain doubtful about the short, or even medium term
prospects of totally transforming their economic habits.
    The bubble of frustration against what appears as Japanese
prevarication burst last week. The U.S. Said it intended to
raise tariffs of as much as 300 mln dlrs on Japanese exports to
the U.S. On the grounds Japan had abrogated a bilateral
semiconductor pact.
    British Prime Minister Margaret Thatcher threatened to
block Japanese financial firms from London after the Japanese
placed what the British say are restrictive conditions on a bid
by British firm Cable and Wireless to join a domestic
telecommunications joint venture.
    On Friday, European currency dealers said European central
banks, annoyed at restrictive Japanese trade practises, might
leave Japan alone to intervene to staunch the rise of the yen.
    Eishiro Saito, head of top Japanese business group
Keidanren, spotted the dangers inherent in such contradictory
views last November when he visited the European Community.
"Related to this matter of (trade) imbalance, the point that I
found to be of great cause for alarm during this trip to Europe
was the excessive degree of hope placed by the Europeans in the
results of the Maekawa report," he said.
    "We explained that the process of restructuring the economy
away from its dependence on exports toward a balance between
domestic and external demand...Would take time," Saito said.
    Saito's words were ignored. In February, EC Industrial
Policy Director Heinrich von Moltke came to Japan and said "I
only know that your government, under the leadership of
Maekawa, points to restructuring your economy into a less
outward looking, more inward looking one. It is the Maekawa
report which has attracted the most attention in Europe."
    And Europeans and Americans want quick action. "A far better
answer than protectionism would be structural change within the
Japanese economy, the kind suggested by the Maekawa report. And
we hope to see changes occur in the near future," visiting
Chairman of General Motors Roger Smith said in March.
    Such expectations are now ingrained, which was partly the
fault of Nakasone, who heralded Maekawa's report as a sea of
change in Japanese affairs, said U.S. Officials.
    Months before the report was issued, U.S. And EC business
leaders met their Japanese colleagues to discuss the trade
problem.
    "We are more anxious than ever that the new approach of the
Maekawa committee does lead to speedy and effective action,"
said EC Industrial Union leader Lord Ray Pennock.
    "The important implication of the Maekawa report is that it
is finally looking to let Japanese enjoy the fruits of their
labour," said Philip Caldwell, Senior Managing Director of
Shearson Lehman Brothers.
    Contents of the report were leaded well ahead of issuance.
    Japanese officials say they are implementing the report as
fast as they can, said a European ambassador who has travelled
the country asking about this issue.
    He said People mentioned many things in line with the
spirit of the report, including restructuring of the coal and
steel industries.
    A major misunderstanding is that the private report was
government policy. Europeans are confused about this,
underlined by von Moltke's reference to the "leadership" of the
Maekawa report. Even so, Japanese officials point to last
September's government programme of new economic measures.
"Without endorsing the report as policy, officials point out
that the government has put its signature to a programme
designed to implement the report," the ambassador said.


.I 16834
.C
money-fx
.W
PHILADELPHIA EXCHANGE TO EXTEND HOURS FOR ASIA.
    SYDNEY, March 30 - The Philadelphia Stock Exchange (PHLX),
a leading trader of currency options, plans to extend its
trading hours to serve Australasian and Far Eastern markets,
exchange president Nicholas Giordano said.
    He told reporters the PHLX will open a new session between
1900 and 2300 hours U.S. EST from the beginning of the third
quarter this year.
    The PHLX is also opening an office in Hong Kong to serve
clients in the region and educate financial markets about the
advantages of currency options, Giordano said.
    Giordano was in Sydney to start an Asian-Pacific tour by
exchange executives promoting the hedging benefits of the
exchange-trade currency option market against existing
over-the-counter option trading during the local working day.
    Currency options pioneered by the PHLX in 1982 had become
an accepted means of hedging against foreign exchange risk and
had grown in popularity, he said.
    The PHLX now offered options in eight currencies, including
a new Australian dollar option, and traded an average 42,000
contracts daily with underlying open interest of more than 30
billion U.S. Dlrs.
    Giordano said the exchange had been impressed with the
performance of its Australian dollar contract, which since its
introduction last year had regularly topped the French franc as
the third most popular traded option, with up to 8,000
contracts traded daily.
    Having the Philadelphia exchange open during the
Asia-Pacific market day would open new hedging opportunities,
set a truer level for over-the-counter option trading, increase
arbitraging opportunities and give corporations and treasuries
access to a currency option market of much greater depth and
liquidity with the security of a clearing house, he said.


.I 16835
.C
money-fx
.W
JAPAN CAREFULLY CONSIDERING MONEY POLICY - SUMITA.
    TOKYO, March 30 - Bank of Japan governor Satoshi Sumita
said the central bank will carefully consider its monetary
policy in light of the recent sharp fall of the dollar.
    Asked if the Bank of Japan will consider a further cut in
its discount rate, he said he now thinks the bank will have to
carefully consider its future money policy.
    He told a Lower House Budget Committee in Parliament that
credit conditions have been eased by the five discount rate
cuts by Japan since the beginning of last year.
    Japan must now be especially careful about a flare-up in
inflation, with money supply growth accelerating, he said.
    Sumita said the central bank would continue to make a
judgement on monetary policies while watching consumer prices,
exchange rates and economic and financial conditions both in
and outside Japan.
    Asked if the September 1985 Plaza agreement was a failure
because the dollar had fallen too far, Sumita said he still
thought the pact was a good one in the sense that it had
corrected the overvaluation of the dollar. But the Plaza accord
did not set any target for the dollar's fall, he said.
    The dollar's steep fall stems from the market's belief that
the trade imbalance will continue to expand, he said.


.I 16840
.C
trade
.W
TOKYO BIDS TO STOP CHIP ROW BECOMING TRADE WAR.
    By Rich Miller, Reuters
    TOKYO, March 30 - Japan is seeking to prevent its computer
chips dispute with the U.S. From erupting into a full-scale
trade war, government officials said.
    "We hope that the dispute on this specific issue won't have
an adverse effect on our overall relationship with the United
States," a Ministry of International Trade and Industry (MITI)
official said.
     On Friday, Washington announced plans for as much as 300
mln dlrs in tariffs on Japanese electronic goods for Tokyo's
alleged failure to live up to a bilateral computer chip pact.
    That agreement, reached last year after heated
negotiations, called on Japan to stop selling cut-price chips
in world markets and to buy more American-made semiconductors.
    Foreign Ministry officials immediately tried to isolate the
fall-out from the dispute by seeking to separate it from Prime
Minister Yasuhiro Nakasone's planned trip to Washington at the
end of April.
    While Japan has already done about all it can to make sure
the chip pact is working, the government is studying measures
it can take in other fields to defuse American anger and ensure
the trip's success, they said.
    "The perception of Japan in the (U.S.) Congress is very bad,"
one official told Reuters. "We would very much like to do
something to respond to that."
    In an apparent effort to prevent the chip dispute from
spreading to other areas, MITI officials sought to depict the
U.S. Action as a severe warning to Japanese semiconductor
makers, not to the government.
    Faced with a belligerent domestic chip industry and an
angry American Congress, the Japanese government has been
forced to walk an increasingly fine line in the semiconductor
dispute, trade analysts said.
    They said that it was an open secret that Japan's largest
chip maker, NEC Corp, was not happy with what it viewed as the
draconian measures MITI was taking to implement the pact,
included enforced production cuts.
    The angry response of Japanese chip makers yesterday to the
announcement of the U.S. Tariffs highlighted the difficulties
the government faces in taking further action.
    "Japanese semiconductor manufacturers have complied with the
U.S./Japan agreement," said Shoichi Saba, Chairman of the
Electronic Industries Association of Japan.
    He accused the U.S. of being "irrational." He said the U.S.
action had made the bilateral chip pact "meaningless."
    Saba's comments contrasted with those of Prime Minister
Yasuhiro Nakasone, who said Tokyo wanted to solve the dispute
through consultations.
    Japan is expected to send a high-level official to
Washington early next month to try to convince the U.S. Not to
go ahead with the tariffs on April 17.
    Trade analysts say Tokyo is likely to outline industry
plans to step up purchases of U.S. chips and to propose a joint
investigation into U.S. allegations of chip dumping.


.I 16841
.C
money-fx;trade;
.W
U.S. APPEARS TO TOLERATE FURTHER DLR DECLINE.
    By Peter Torday, Reuters
    WASHINGTON, March 30 - In a bid to hasten Japan's promise
to speed up its economic growth and open markets to foreign
trade, top U.S. officials appear once again to have signaled
their tolerance of a lower dollar.
    Treasury Secretary James Baker and one of his top aides,
Assistant Secretary David Mulford, said last week there was no
target for the dollar, a statement that sent the yen soaring
against the dollar, despite massive central bank intervention.
    "That was no slip of the tongue," said one western monetary
official, who asked not to be identified.
    For now, the strategy appears to be working. Japanese
officials said late last week a package to bolster domestic
demand will be ready in early April. Until last week, there
were few indications the package would be ready anytime soon.
    The Reagan administration, facing an uproar in Congress
over the apparent lack of progress in cutting the 169.8 billion
dlr trade deficit, is learning now that to extract results from
Japan, dramatic action is required.
    Last week the White House imposed unprecedented tariffs on
certain Japanese electronic goods after Tokyo failed to adhere
to a semi-conductor pricing accord between the two countries.
    The shift in U.S. strategy, in part designed to appease
mounting Congressional anger over Japanese policies, comes just
two weeks before industrial nations reconvene here to review
the Paris agreement to stabilize currencies.
    And news that Japan earned a record 18 billion dlr trade
surplus in the first two months this year just underscored the
need for urgent action, in the view of U.S. officials.
    Nonetheless, U.S. officials see signs of improvement in the
deficit. "I'd be stunned if we were not going to derive some
benefits (from the lower dollar) soon," said one.
    In Paris, leading industrial nations agreed to cooperate
closely to foster currency stability within ranges reflecting
"underlying economic fundamentals" or economic reality.
    The agreement envisages those fundamentals to include Japan
and West Germany stimulating their economies and the United
States cutting its budget deficit.
    The three nations, joined by France, Britain and Canada,
agree these policies are essential to redress huge global trade
imbalances.
    But analysts say markets have signalled the underlying
fundamentals imply a lower dollar, rather than a stable one.
    Markets, in effect, are less confident than governments
that these measures -- including U.S. budget deficit cuts
agreed by Congress and the White House --will be carried out.
    Nonetheless, the dollar's sharp fall has not undermined 
cooperation. A U.S. economic policymaker said the accord was on
track and Tokyo and Bonn seem "to want more stimulative measures
which is what the Paris accord calls for."
    International monetary sources said exchange market
developments generally have not unsettled policymakers,
although Japan is an obvious exception. "Everybody feels it can
still be managed," one source said of market developments.
    But last week, the Bank of Japan spent an estimated five
billion dlrs intervening to halt the rise in the yen, and other
central banks about one billion dlrs.
    Another monetary source said Japan was upset with America's
half-hearted attempt to halt the falling dollar, flouting the
Paris accord outright.
    The source, close to the top levels of Japanese economic
policymaking, said Japan's understanding of the accord was that
the yen would be kept at around 154 to the dollar, the level it
stood at when the accord was struck.
    The source said Tokyo was extremely worried by Washington's
use of the exchange rate to change Japanese policies. It was a
"pointed reminder" to Japan to do something about the trade
issues, the source said of the dollar's fall against the yen.
    By departing last Sunday from the language of the Paris
accord -- that nations agreed to foster currency stability
around current levels -- Baker triggered a run on the dollar.
    Later in the week, Mulford too said there was no target for
the dollar and called on Japan and West Germany to live up to
their international responsibilities and stimulate growth.
    But U.S. officials said recent market developments will not
unravel the spirit of the Paris agreement.
    "There's a realisation now that you cannot leave things
alone, everyone agrees that the external (trade) imbalances
ought to be adjusted," one official said.
    "While no-one is going to cede national sovereignty, we
certainly seem to be moving towards much closer co-operation,"
another U.S. official said.
    The officials said the meeting here, where the six will be
joined by Italy, will be a status report.
    "Japan will have to explain what the state of their program
is and Germany will report on its plans. Maybe there's a need
to move faster," one source said.
    Mulford told Congress last week the Paris accord called, in
effect, for currency stability for several months. This would
buy time for Japan and West Germany to speed up their economic
growth and help bring down the U.S. trade deficit.
    His comments appeared to serve notice on other major
nations that Washington cannot wait too long for action to
reduce the gap between the Japanese and German trade surpluses
and the U.S. trade deficit.


.I 16842
.C
trade
.W
BALDRIGE PREDICTS END OF U.S.-JAPAN TRADE DISPUTE.
    WASHINGTON, March 30 - The United States and Japan will
soon settle their trade dispute over semiconductors, U.S.
Commerce secretary Malcolm Baldrige said on television.
    Baldrige, referring to the U.S.-Japan trade agreement on
semiconductors, said: "Their government wants to live up to it.
Their industries haven't been doing it, and I think we'll have
a good settlement to spare both sides."
    "I think the Japanese understand full well that they haven't
lived up to this commitment," he said.
    He added: "I do not think there will be a trade war at all."
    On Friday, Washington announced plans to put as much as 300
mln dlrs in tariffs on Japanese electronic goods from April 17,
because of Tokyo's failure to observe the agreement.
    The officials said the tariffs would be ended as soon as
Japan started adhering to the agreement. But they said there
was little chance Japan could react quickly enough to avert the
higher tariffs.
    Baldrige said the Reagan administration hoped the strong
U.S. Action against Japan would convince Congress to tone down
protectionist trade legislation now being drafted.
    He denied the action had been taken for that reason.


.I 16843
.C
dlr;money-fx;
.W
U.S. BANKER PREDICTS FURTHER DOLLAR FALL THIS YEAR.
    ABU DHABI, March 30 - A leading U.S. Banker said the dollar
was likely to fall another five to 10 pct this year and an
improvement in the huge American trade deficit would be only
temporary at current world exchange rate levels.
    Kurt Viermetz, worldwide treasurer of Morgan Guaranty Trust
Co, told Arab currency traders meeting here that the steady
depreciation of the dollar had not gone far enough to rein in
U.S. deficits on a lasting basis.


.I 16845
.C
acq
.W
INVESTOR GROUP PUTS PRESSURE ON GENCORP <GY>.
    By Patti Domm, Reuters
    NEW YORK, March 30 - An investor partnership, seeking to
acquire GenCorp Inc, said it would attempt to unseat the
company's board of directors and take other hostile actions if
the firm refuses to discuss its 2.3 billion dlr takeover bid.
    General Acquisition Co, comprising investors Wagner and
Brown and glass-maker AFG Industries, also reiterated its
willingness to negotiate with Gencorp.
    The partnership has earlier offered 100 dlrs per share for
GenCorp -- a tire, broadcasting, plastics and aerospace
conglommerate.
    Analysts have speculated that GenCorp, on a break-up basis,
could fetch more than 110 to 120 dlrs per share.
    GenCorp officials had no comment on General Acquisition's
statement but a spokesman reiterated an earlier request to
shareholders to wait until its board renders an opinion before
making a decision on the General Acquisition tender.
    Gencorp said its statement would be made on or before the
company's annual meeting, scheduled for Tuesday.
    General Acquisition made its statement in a letter sent to
the GenCorp board on Friday.
    The partnership said it was willing to negotiate all points
of its offer, including price.
    The group the board cannot fully carry out its fiduciary
duties to GenCorp shareholders and make a fully informed
decision about its offer until it has "thoroughly explored with
us the ways in which our offer can be revised to provide
greater value to your shareholders."
    General Acquisition said it is aware the board may be
reviewing alternative transactions which might provide GenCorp
shareholders with a payment other than cash.
    "If that is the case, you should recognize that our
additional equity capital may very well enable us to offer cash
and securities having greater value than GenCorp could provide
in any similarly structured transaction," the partnership said.
    General Acquisition also said it believes that GenCorp's
board has an obligation to present any alternative transaction
it may propose to shareholders in a manner that would allow for
competing offers.
    The partnership requested that if any other proposal is
under consideration that it be given the same information
available to GenCorp's managers and advisers in constructing a
proposal.
     General Acquisition said that if GenCorp agrees to accept
another buyout proposal that it also be given an opportunity to
bid on a competitive and fair basis before any final decision
is made.
    General Acquisition repeated its request that GenCorp
remove its "poison pill" or shareholders rights plan.
    General Acquisition said if GenCorp does not allow an
"environment for fair competition," it will take all steps
necessary to create such an enviroment.
    It said it may take legal action or seek the support of
shareholders in calling a special meeting to replace the board
and to consider other proposals it might develop.
    General Acquisition also said if the board decides to
accept an alternate proposal it asked that it not accept a plan
that would include defensive features.


.I 16847
.C
acq
.W
UNITED BANKS COLORADO <UBKS> ACQUISITION CLEARED.
    DENVER, March 30 - United Banks of Colorado Inc said it has
received Federal Reserve Board approval to acquire IntraWest
Financial Corp <INTW> in an exhcnmage of 0.7234 United share
for each IntraWest share.
    The company said the acquisition is still subject to 30-day
review by the U.S. Justice Department and is expected to be
completed in the second quarter.


.I 16848
.C
acq
.W
SUFFIELD'S <SSBK> COASTAL <CSBK> BUY CLEARED.
    SUFFIELD, Conn., March 30 - Suffield Financial Corp said it
has received approvcal from the Maine Bureau of Banking for its
proposed acquisition of Coastal Bancorp of Portland, Maine, and
the acquisition is expected to close around April One.
    The approval was the last regulatory clearance required for
the transaction.


.I 16849
.C
acq
.W
MARKETING SYSTEMS <MASY> SEEKS ACQUISITIONS.
    HARRISON, N.Y., March 30 - Marketing Systems of America Inc
said it has retained Richter, Cohen and Co to assist in efforts
to redirect its business through merger or acquisition.
    The company said as consideration for services to be
renedered, it has agreed to grant Richter five-year warrants to
buy 231,000 common shares at 32 cts each, exercisable starting
in March 1988, and a negotiated fee on completion of any
transaction.  It said it has the right to cancel the warrants
after one year if no transaction has been completed.


.I 16851
.C
earn
.W
ORACLE SYSTEMS <ORCL> FILES FOR OFFERING.
    BELMONT, Calif., March 30 - Oracle Systems Corp said it has
filed for an offering of 2,300,000 common shares, after
adjustment for a recent two-for-one stock split, including
800,000 to be sold by shareholders.
    The company said lead underwriters are Alex. Brown and Sons
Inc <ABSB> and <Donaldson, Lufkin and Jenrette Securities
Corp>.  The offering is expected to be made in early April,
with company proceeds used to repay all short-term debt, for
working capital and for possible acquisitions.
    Oracle said after the offering it will have about 28.5 mln
shares outstanding.


.I 16855
.C
acq
.W
SKANSKA TO TAKE STAKE IN CANADIAN FIRM.
    STOCKHOLM, MARCH 30 - Swedish construction and real estate
company Skanska AB <skbs.St.> said it will sell its 49 pct
holding in Canadian building firm <Canadian Foundation Company
Ltd> to rival <Banister Continental Ltd>.
    A company spokeswoman told Reuters Skanska will receive
Banister shares as payment, giving the Swedish group 15 pct of
the stock in the expanded Banister firm.
    She said Skanska will also be appointing two board members
to the Canadian company.


.I 16857
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 129 MLN STG ASSISTANCE.
    LONDON, March 30 - The Bank of England said it had provided
the money market with assistance worth 129 mln stg in the
afternoon session. This compares with the Bank's forecast of a
shortage in the system today of around 100 mln stg.
    The central bank purchased 129 mln stg bank bills in band
one at 9-7/8 pct.


.I 16858
.C
ship;crude;
.W
GREECE SCRAPS U.S. BASE CLOSURE REQUEST.
    ATHENS, March 30 - Prime Minister Andreas Papandreou has
withdrawn a request to Washington to suspend operations at an
American army base near Athens as a Greek-Turkish row over oil
rights in the Aegean eased.
    A Turkish research ship which Greece had threatened to
tackle if it sailed into disputed waters in the Aegean Sea kept
to Turkish territorial waters yesterday, avoiding a potential
clash.
    Papandreou expressed qualified optimism after briefing
opposition leaders on Aegean developments early yesterday.
    The Greek government later withdrew Friday's request to
Washington to close down its telecommunications base at Nea
Makri, north of Athens, saying that the reasons which had
prompted it to make the request were no longer valid.
    Under the terms of the U.S.-Greek bases accord, Greece has
the right to ask for suspension of operations at times when its
national interests are threatened.
    The row in the Aegean erupted after Turkey said it would
search for oil round three Greek islands off its coast
following an announcement from Greece that it planned to drill
east of Thassos island after taking control of a Canadian-led
oil consortium operating in the northern Aegean.
    Turkey accused Greece of breaching the 1976 Berne Agreement
under which both sides agreed to preserve the status quo in the
Aegean until their continental shelf dispute was settled.
Athens says it considers the accord inactive.
    The Turkish Foreign Ministry said in a statement it had
received an assurance from Greece that it would not carry out
oil activities outside its territorial waters. Greece declined
comment on the statement.
    Papandreou repeated an invitation to Turkey to take the
long-standing continental shelf dispute to the International
Court of Justice at The Hague.
    Conservative opposition leader Constantine Mitsotakis said
he had urged Papandreou to accept an offer from NATO General
Secretary Lord Carrington to help resolve the row.


.I 16864
.C
ship;sugar;
.W
PANAMA SUGAR VESSEL SAFELY DOCKED AT GREENOCK.
    LONDON, March 30 - The Panamanian motor vessel Northern 1,
4,217 dwt, was safely towed into Greenock over the weekend
after having its crankshaft broken off the Scottish coast
during severe weather, Lloyds Shipping Intelligence said.
    Northern 1 was loaded with 3,000 tons of sugar from
Demerara.


.I 16865
.C
money-fx;yen;
.W
JAPAN SET TO RIDE OUT YEN RISE, OFFICIALS SAY.
    By Rich Miller, Reuters
    TOKYO, March 30 - The government is determined to ride out
the latest sharp rise of the yen without taking panic measures
because it expects the currency's appreciation to prove
temporary, senior officials said.
    "The market has already located a ceiling (for the yen) and
market forces are pushing the dollar back up a bit," one senior
Finance Ministry official said.
    He attributed the dollar's fall in recent days to special
factors, in particular, selling by Japanese investors ahead of
the March 31 end to their fiscal year.
    That selling largely came to an end this morning after
about one hour of trading here, the senior official said. "They
(the investors) became more or less quiet after 10 o'clock
(0100 GMT)," he said.
    After falling to a record low of 144.70 yen this morning,
the dollar edged back up in late trading to end at 146.20.
Dealers attributed the late rise to remarks by Prime Minister
Yasuhiro Nakasone that major nations had agreed to stabilise
the dollar above 150 yen.
    Several officials said they did not see any fundamental
reason for the dollar's recent sharp fall.
    One official even called the market's recent actions
irrational. If anything, the U.S. Decision to slap tariffs on
Japanese electronics goods should support the dollar against
the yen because it will cut Japanese exports to the U.S., He
said.
    As a result, several officials said they saw no reason to
alter the broad thrust of government policy agreed to at last
month's meeting of major nations in Paris.
    "We don't see any substantial reason to change our policy
stance," one senior official said.

.I 16866
.C
earn
.W
SAGE ANALYTICS <SAII> SETS STOCK SPLIT.
    PROVO, Utah, March 30 - Sage Analytics International Inc
said its board has declared a three-for-two stock split,
payable June 22 to holders of record on June Eight.
    The company also said it will redeem warrants till
outstanding on June Two at 10 cts each.  Each two warrants
allow the purchase of one common share at six dlrs through June
One.  There are presently 800,000 warrants outstanding.


.I 16868
.C
money-fx;trade;
.W
H.K. DEALERS SAY NAKASONE G-6 COMMENT TOO LATE.
    By Joshua So, Reuters
    HONG KONG, March 30 - Remarks by Japan's Prime Minister
Yasuhiro Nakasone that last month's G-6 meeting agreed to
stabilize the dollar above 150 yen have come too late to
influence currency trading, dealers said.
    After Nakasone's statement the dollar rose to 146.40/50 yen
from an initial low of 144.20/40 and New York's Friday finish
of 147.15/25. But the rebound was largely on short-covering,
they said.
    "I think (Nakasone's) desperate," said a U.S. Bank foreign
exchange manager.
    Nakasone told a Lower House Budget Committee in Parliament
that Japan and other industrialized nations committed
themselves in Paris last month to stabilize the dollar above
150 yen.
    Finance Minister Kiichi Miyazawa told the same committee
that the six - Britain, Canada, France, Japan, the U.S. And
West Germany - had intervened aggressively since the dollar
fell below 150 yen.
    "His (Nakasone) remarks should have been made and should
have had a bigger influence when the dollar was still above 150
yen," said P.S. Tam of Morgan Guaranty Trust.
    Tam said the dollar has hit short-term chart targets  and
is likely to rebound. But he warned of another dip to below 145
yen.
    Dealers said the worsening trade relations between the U.S.
And Japan will continue to depress the dollar.
    The trade issue has now become a political issue since the
Reagan Administration is facing uproar in Congress over
th3pYgks in cutting the country's 169.8 billion dlr trade
deficit, they said.


.I 16869
.C
money-fx
.W
JAPAN CONDUCTS CURRENCY SURVEY OF BIG INVESTORS.
    TOKYO, March 30 - A Finance Ministry official said the
ministry has recently conducted a survey on foreign exchange
transactions by institutional investors but declined to say if
it was aimed at moderating their dollar sales.
    However, financial market sources said they had heard the
ministry has asked life insurance and securities firms to
refrain from selling dollars, but they were unable to confirm
this directly.
    Dealers said life insurance firms were not major sellers of
dollars in recent trading sessions because they had already
sold them to hedge risks.
    Dealers said securities houses and trust banks on the other
hand have aggressively sold the dollar.


.I 16870
.C
money-fx
.W
JAPANESE SEEN LIGHTENING U.S. BOND HOLDINGS.
    By Yoshiko Mori, Reuters
    TOKYO, March 30 - The dollar's tumble to a record low of
144.70 yen in Tokyo today motivated some major Japanese
investors to lighten their U.S. Bond inventory further and is
expected to spur diversification into investment assets
including foreign and domestic shares, dealers said.
    The key U.S. 7-1/2 pct Treasury bond due 2016 fell to a low
of 96.08-12 in early Tokyo trade against the 98.05-06 New York
finish, then recovered to 96.20-22.
    Some trust bank pension fund acccounts and investment
trusts were seen selling several hundred million dollars on the
foreign exchange market here today, accentuating the unit's
tumble, securities house dealers said.
    They seem undecided on what to do with the fresh yen cash
positions resulting from their dollar sales today, and are
sidelined until the currency market stabilises and the interest
rates outlook clarifies, a Nikko Securities Co Ltd currency
trader said.
    The dollar's plunge and low yields on U.S. Bonds will
further promote diversification into other foreign investments,
as well as call back funds into the domestic bond and stock
markets from overseas bond markets, securities bond managers
said.
    They said major Japanese investors in the past two years
are estimated to have held 50 to 80 pct of their foreign
portfolios in U.S. Bonds but many have lightened their U.S.
Bond inventory to as low as 40 pct.
    Since late last year, Japanese investors, seeking
substantial liquidity and attractive yields, have used fresh
funds to buy mark and Canadian dollar bonds and, after the
Paris currency pact, actively bought French franc bonds and
gilts while gradually lightening U.S. Bond inventories, the
managers said.
    Dealers said funds tied up in foreign assets had flowed
into local bond and stock markets as well.
    The yield of the key 5.1 pct 89th bond dropped to a record
low of 4.080 pct today from the 4.140 Saturday finish and
compared with 4.25 pct on three-month certificates of deposit.
    The key bond has fluctuated less than five basis points for
more than a month here, suggesting most dealers could not
satisfy their needs for capital gains, dealers said.
    A market survey by Reuters showed some active accounts in
U.S. Treasuries are currently dealing on Tokyo's stock market.
The stock market's bullishness late last week was partly due to
funds transferred from U.S. Treasuries, dealers said.
    Japanese net purchases of foreign securities in the first
half of March fell an estimated one billion dlrs compared with
average monthly net purchases of 7.7 billion for the whole of
1986, Finance Ministry sources said.
    The steep fall is due to Japanese investors' cool attitude
towards U.S. Bonds, which had amounted to more than 80 pct of
total foreign securities purchased, securities houses managers
said.
    Foreign stock buying in March is expected to exceed the
record high of 1.5 billion dlrs seen in December, they said.
    "Diversification of foreign portfolios is underway and we
have bought bonds in currencies such as marks, the Canadian
dollar, the ECU and French franc," a fund manager at <Yasuda
Trust and Banking Co Ltd> said.


.I 16872
.C
gold
.W
PERU ANNOUNCES LARGE NEW GOLD FIND.
    LIMA, March 30 - President Alan Garcia said Peru has found
gold deposits worth an estimated 1.3 billion dlrs in a jungle
region near the Ecuadorean border about 1,000 km north of here.
    He told reporters yesterday the deposits, located at four
sites near the town of San Ignasio, contained the equivalent of
100 tonnes of gold.
    Garcia said the government would soon install a two mln dlr
treatment plant at Tomaque. It will extract enough ore to
provide an estimated 25 mln dlr profit by the end of this year,
he added.
    Garcia said the other gold-bearing deposits are located at
Tamborapa, Pachapidiana, and a zone between the Cenepa and
Santiago rivers.


.I 16876
.C
acq
.W
******NEWS CORP LTD TO ACQUIRE HARPER AND ROW PUBLISHERS INC FOR 65 DLRS/SHARE.
Blah blah blah.

.I 16877
.C
acq
.W
CANADIAN WORLDWIDE ENERGY BUYS TRITON<OIL> UNIT.
    CALGARY, Alberta, March 30 - <Canadian Worldwide Energy
Ltd> said it acquired Triton Energy Corp's wholly owned
Canadian subsidiary, Triton Petroleum Ltd, for the issue of
3.75 mln common shares of Canadian Worldwide, subject to
regulatory approvals.
    The company said the transaction will increase Triton
Energy's holding in Canadian Worldwide to 13.25 mln shrs or a
60 pct fully diluted interest from 9.5 mln shares.
    Triton Petroleum's assets consist of proven oil reserves of
1.3 mln barrels, exploratory acreage, and unspecified working
capital and a significant tax loss carryforward.
    Canadian Worldwide said it is optimistic the Triton
Petroleum Ltd acquisition will strengthen its financial and
production base and permit acceleration of its conventional oil
exploration program.


.I 16878
.C
earn
.W
CLABIR <CLG> DIVIDENDS NOT TAXABLE.
    GREENWICH, Conn., March 30 - Clabir Corp said it has
determined all dividends paid on its Class A common in 1986 are
not taxable as dividend income.
    While this is a preliminary estimate, the company said, it
may be used by shareholders when preparing 1986 income tax
returns.


.I 16883
.C
earn
.W
LENNAR <LEN> SEES STRONG EARNINGS FOR 1987 YEAR.
    MIAMI, March 30 - Lennar Corp chairman and president,
Leonard Miller, said the current backlog of orders and the
strong economy point to strong revenues and earnings for the
balance of fiscal 1987.
    He said the company's backlog of sales deposits on Feb 28
was 2,416, an increase of 976 units over the previous year.
    Lennar recorded net earnings for the first quarter 1987 of
4,403,000, or 51 cts per share, compared to 1,775,000, or 20
cts per share the prior first quarter. It recorded net earnings
of 12.5 mln dlrs, or 1.43 dlrs per share, for fiscal 1986.
    The company also said that at its April 29 annual meeting,
shareholders will vote on increasing the company's authorized
common stock to 45 mln shares from 15 mln. This will include 30
mln shares of common stock and 15 mln shares of class B common
stock, it added.
    Those shareholders who elect to convert their shares into
class B stock will be entitled to 10 votes per share while
other shareholders will retain one vote per share, Lennar said.
    The company said if this is approved, it intneds to pay
holders of Class B stock a quarterly cash dividend of five cts
per share and holders of the other common stock a quarterly
cash dividend of six cts per share.


.I 16886
.C
trade
.W
YUGOSLAV TRADE FALLS SHARPLY  STATISTICS SHOW.
    BELGRADE, March 30 - Yugoslav trade is declining rapidly
this year in hard currency terms, according to the latest
Federal Statistics Office (FSO) figures.
    The FSO figures showed total exports from January 1 to
March 23 valued at 875.59 billion dinars, compared with 667.18
billion dinars in the same period last year.
    These figures were down by 12.5 pct on last year in dollar
terms due to exchange rate fluctuations and changes in how the
figures were calculated, FSO sources said.
    This year current exchange rates were used for the first
time instead of a fixed rate of 24.53 dinars to the dollar.
    BELGRADE, March 30 - Yugoslav trade is declining rapidly
this year in hard currency terms, according to the latest
Federal Statistics Office (FSO) figures.
    The FSO figures showed total exports from January 1 to
March 23 valued at 875.59 billion dinars, compared with 667.18
billion dinars in the same period last year.
    These figures were down by 12.5 pct on last year in dollar
terms due to exchange rate fluctuations and changes in how the
figures were calculated, FSO sources said.
    This year current exchange rates were used for the first
time instead of a fixed rate of 24.53 dinars to the dollar.

.I 16887
.C
earn
.W
WALBRO <WALB> SEES STRONG 1ST QTR RESULTS.
    CASS CITY, MICH., March 30 - Walbro Corp said it expects
its first-quarter results to reach "all-time highs."
    It projected sales exceeding 32 mln dlrs, or up 21 pct from
the 26,488,000 dlrs reported for the 1986 first quarter. It
said the previous high for a single quarter was 27,179,000 dlrs
for the 1986 fourth quarter.
    Walbro estimated income for the quarter will exceed
first-quarter 1986 income, which was 1,953,000 dlrs, or 66 cts
a share, by at least 40 pct. It said the first quarter of 1986
had been the previous income record for a single quarter.
    Walbro cited strong demand for its fuel systems products,
especially automotive electronic fuel injection components and
carburetors for lawn and garden applications.
    However, it said it is unlikely the company will sustain
the same record pace of sales and income throughout 1987, due
to an expected reduction in throttle body sales.
    "It now appears likely that the company's throttle body
business with General Motors Corp <GM> will peak in the first
six months of 1987, continue at reduced levels to July 1988 and
suffer an interruption for the period from July 1988 to July
1989," Walbro added.


.I 16888
.C
gnp
.W
CANADA GDP UP 0.1 PCT IN JANUARY.
    OTTAWA, March 30 - Canada's gross domestic product rose 0.1
pct, seasonally adjusted, in January after gaining 1.0 pct in
December but falling 0.1 pct and 0.3 pct in November and
October, Statistics Canada said.
    January's rise, in 1981 prices, was fueled largely by a 0.5
pct gain in the goods producing sector. Output in
services-producing industries declined 0.1 pct from December's
level.
    January's level was 1.29 pct higher than the same month a
year ago.
    The federal agency said it was the second straight gain for
goods producing industries. Most of the growth occurred in
manufacturing and construction.
    Within manufacturing, strong gains were posted in the wood,
machinery, non-metallic mineral and food product groups.
Significant declines were recorded in the output of automobiles
and parts, however.
    In the services sector, increases in finance, insurance and
communication were more than offset by declines in
transportation, storage and the retail trade.


.I 16891
.C
wheat;grain;rice;
.W
SRI LANKA APPEALS FOR DROUGHT RELIEF AID.
    COLOMBO, March 30 - Sri Lanka has appealed to 24 countries
for emergency aid to help 2.4 mln villagers affected by the
country's worst drought in 36 years, government officials said.
    Embassies received letters over the weekend outlining aid
needed for a sixth of Sri Lanka's population in 13 districts.
    The letter said the government had to step in "to avert
serious economic hardship" and because the Social Services
Ministry had already used up its entire 1987 budget provision
of 23 mln rupees by distributing help to the worst hit areas.
    The letter said 548.76 mln rupees were needed for a six
month period, at least until the May-September (Yala) rice crop
was harvested. Over 25,000 tonnes of wheat, rice, flour and
other cereals were required, it said, along with supplies of
sugar, lentils, dried or canned fish and milk.
    In some of the most seriously affected districts, the Maha
(October 1986-April 1987) crop had been "almost completely
devastated," the letter said. Maha paddy output was now
estimated at 70 mln bushels, 20 mln less than originally
expected.
    There were two scenarios for the Yala crop, with a high
forecast of around 40 mln bushels conditional on adequate
rainfall within the next three to four weeks.
    "Should the present drought continue, however, production is
estimated at around 20 mln bushels," the letter added.
    Total estimated paddy output for 1987 would be between 90
and 110 mln bushels, or 1.35 to 1.65 mln tonnes of rice. Last
year's output was 124 mln bushels, down from 127 mln in 1985.
    The letter said villagers in most seriously affected
districts had been deprived of any means of subsistence because
subsidiary crops had also failed.
    It said the government's current budget did not permit it
to provide sustained and adequate relief to those affected.
"Revenue has been adversely affected by depressed commodity
prices and slowing of the economy. Defence commitments continue
to exert pressure on the expenditure side."
    The 548.76 mln cash would cover payments of 150 rupees per
month for each family, as well as handling, transport and
distribution of emergency food. But such an outlay of funds by
the government would not be possible without seriously
impairing development projects, or "greatly fuelling inflation"
in the economy, the letter said.
    The letter said the Food Department would be able to
release wheat and rice from the buffer stock to meet the
immediate cereal requirements "provided such stocks are replaced
subsequently."
    The Meteorological Department said the country was
experiencing its worst drought since 1951 and the four-month
dry spell prevailing in most of the areas would only break when
the monsoon rains fell in late May.
    The letter said some areas had been experiencing the
drought since August, and in the rice growing district of
Kurunegala there had been no effective rainfall since June
1986.


.I 16892
.C
acq
.W
MOBIL FRANCE TO TAKE 10 PCT STAKE IN PRIMAGAZ.
    PARIS, March 30 - Mobil Corp's <MOB> Mobil Oil Francaise
unit said it will take a stake of about 10 pct in the French
butane and propane gas distribution company <Primagaz> in
exchange for the transfer to Primagaz of Mobil's small and
medium bulk propane activity.
    Small and medium bulk propane sales totalled 55,000 tonnes
in 1986 and the transfer will increase total business of
Primagaz by about 12 pct, equal to 32,000 extra customers.
    A Primagas spokesman said Mobil will take the stake by
means of a capital increase, terms of which have not yet been
established.

.I 16893
.C
earn
.W
METROMAIL <MTML> SEES FLAT YEAR NET.
    LINCOLN, Neb., March 30 - Metromail Corp said it expects
earnings for the year to be about flat due to higher expenses
caused by an expansion of data processing capabilities and
startup costs associated with new cooperative programs that
will continue into the fourth quarter.
    The company today reported earnings for the nine months
ended March One of 7,214,900 dlrs, down from 7,752,800 dlrs a
year before.  For all of last year it earned 10.9 mln dlrs.


.I 16894
.C
earn
.W
REGENCY CRUISTS <SHIP> CORRECTS EARNINGS.
    NEW YORK, March 30 - Regency Cruises Inc said its earnings
per share for the year 1986 were 36 cts per share, not the 37
cts it reported on March 11.
    The company lost 10 cts per share in 1985.


.I 16895
.C
acq
.W
MORRISON INC <MORR> ACQUIRES CUSTOM MANAGEMENT.
    MOBILE, Ala., March 30 - Morrison Inc, a diversified food
service company, said it acquired Custom Management Corp, based
in Kingston, Penn., for an undisclosed amount.
    Custom manages some 215 food contract management operations
and about 65 environmental service accounts, producing about
100 mln dlrs in annual revenues.


.I 16900
.C
earn
.W
ANECO REINSURANCE CO LTD <ANECF> YEAR NET.
    NEW YORK, March 30 -
    Shr profit 80 cts vs loss 1.60 dlrs
    Net profit 1,673,960 vs loss 3,292,663
    NOTE: 1986 net includes gain on bond portfolio of 1,160,000
dlrs and 5,600,000 dlr provision for losses on discontinued
liability and multi-peril lines of reinsurance.


.I 16901
.C
earn
.W
TEXAS INTERNATIONAL CO <TEI> 4TH QTR LOSS.
    OKLAHOMA CITY, March 30 -
    Shr loss 36 cts vs loss 36 cts
    Net loss 20.1 mln vs loss 12.6 mln
    Revs 12.5 mln vs 24.9 mln
    Avg shrs 55.8 mln vs 34.7 mln
    Year
    Shr loss 1.11 dlrs vs loss 1.05 dlrs
    Net loss 50.8 ln vs loss 31.9 mln
    Revs 63.7 mln vs 106.9 mln
    Avg shrs 45.8 mln vs 30.2 mln
    NOTE: Net includes extraordinary gains of 247,0000 dlrs vs
nil in quarter and 809,000 dlrs vs 425,000 dlrs in year.
    1985 year net includes 6,700,000 dlr credit for previous
overpayments of windfall profits taxes.


.I 16902
.C
earn
.W
SCIENTIFIC MICRO <SMSI> SEES HIGHER REVENUES.
    MOUNTAIN VIEW, Calif., March 30 - Scientific Micro Systems
Inc said it expects first quarter revenues to rise by about 60
pct to 24 mln dlrs, compared with the 15 mln reported for the
first quarter last year.
    The company said it experienced revenue growth across all
product lines during the quarter.
    It also said revenue growth should continue during the year
and the company should experience improved profitability in the
second half when acquisition and new product introduction costs
will not have a significant impact on earnings.


.I 16904
.C
acq
.W
BOLT BERANEK <BBN> FILES FOR DEBENTURE OFFERING.
    NEW YORK, March 30 - Bolt Beranek and Newman Inc said it
filed with the Securities and Exchange Commission a
registration statement covering a 75 mln dlr issue of
convertible subordinated debentures due 2012.
    A portion of the proceeds will be used to acquire all of
the outstanding capital stock of Network Switching Systems Inc.
 Another part will allow Bolt to exercise its option to
purchase all of the limited partnership interests in BBN
RS/Expert Limited Partnership, with the rest used for general
corporate purposes. The company named PaineWebber, Merrill
Lynch and Montgomery Securities as underwriters.


.I 16905
.C
acq
.W
******HENLEY GROUP SAID HAS CLOSE TO FIVE PCT OR 7.9 MLN SHARES OF SANTA FE SOUTHERN PACIFIC AS INVESTMENT.
Blah blah blah.

.I 16906
.C
crude
.W
MEXICAN FIRST QTR CRUDE EXPORTS SEEN AT 15.25 DLRS.
    MEXICO CITY, March 30 - The average price of mexico's crude
oil exports in first quarter 1987 will be 15.25 dlrs per
barrel, according to preliminary figures issued in a press
release by the state oil company Petroleos Mexicanos (PEMEX).
    It gave no direct comparison with the year-ago figure but
said crude and products sales were expected to rise to 1.99
billion dlrs this quarter, 420 mln dlrs higher than expected
and 22 pct better than the year-ago quarter.
    Prospects for the second quarter were relatively favourable
with crude exports seen at 1.320 mln bpd after an expected
1.324 mln this month, 1.323 in February and 1.395 mln in
January.


.I 16908
.C
earn
.W
TEXAS INTERNATIONAL <TEI> HAS UNQUALIFIED AUDIT.
    OKLAHOMA CITY, March 30 - Texas International Inc said it
has received an unqualified audit opinion from auditor Arthur
Andersen and Co.
    The company had received a qualified opinion on 1985
financial statements subject to its ability to resolve
negotiations with its U.S. bank group.  Subsequently, it sold
almost all its domestic oil and natural gas properties and
retired all U.S. bank debt in March 1987 with part of the
proceeds.


.I 16909
.C
acq
.W
TENNECO <TGT> BUYS UNISYS <UIS> UNIT.
    NEWPORT NEWS, Va., March 30 - Tenneco Inc said its Newport
News Shipbuilding subsidiary has completed the purchase of the
Sperry Marine Systems division of Unisys Corp for about 70 mln
dlrs.
    Sperry Marine has annual revenues of about 100 mln dlrs.


.I 16910
.C
acq
.W
BIOGEN <BGENF> MAY SELL EUROPEAN OPERATIONS.
    CAMBRIDGE, Mass., March 30 - Biogen NV said as part of a
program to reduce expenses, it is in talks on the sale of its
Geneva, Switzerland operations.
    The company gave no details.


.I 16912
.C
earn
.W
MILTOPE GROUP INC <MILT> 4TH QTR NET.
    NEW YORK, March 30 -
    Shr 10 cts vs 29 cts
    Net 584,000 vs 1,688,000
    Sales 19.8 mln vs 16.9 mln
    Avg shrs 5,959,000 vs 5,762,000
    Year
    Shr 68 cts vs 96 cts
    Net 4,013,000 vs 5,430,000
    Sales 68.1 mln vs 61.3 mln
    Avg shrs 5,934,000 vs 5,679,000
    Backlog 67.9 mln vs 60.6 mln


.I 16914
.C
earn
.W
ALOETTE COSMETICS INC <ALET> 4TH QTR DEC 31 NET.
    PHILADELPHIA, March 30 -
    Shr 12 cts vs 12 cts
    Net 337,000 vs 235,000
    Revs 3,350,000 vs 1,642,000
    Avg shrs 2,935,734 vs 2,000,000
    Year
    Shr 69 cts vs 56 cts
    Net 1,815,000 vs 1,112,000
    Revs 12.1 mln vs 7,709,000
    Avg shrs 2,648,257 vs 2,000,000


.I 16916
.C
earn
.W
INTERNATIONAL PROTEINS CORP <PRO> YEAR NET.
    NEW YORK, March 30 -
    Oper shr 49 cts vs 22 cts
    Oper net 1,018,000 vs 468,000
    Sales 95.0 mln vs 98.3 mln
    NOTE: Net excludes tax credits of 284,000 dlrs vs 310,000
dlrs.


.I 16917
.C
earn
.W
CSM SYSTEMS INC <CSMS> YEAR ENDED DEC 31 LOSS.
    NEW YORK, March 30 -
    Shr loss 20 cts vs profit 24 cts
    Net loss 173,578 vs profit 211,324
    Revs 4,558,244 vs 5,595,644
    NOTE: Earnings per share restated retroactively for all
periods to reflect 20 pct stock dividend in April 1984 and 25
pct stock split September 1985.
    Revenues include progress receivables on long-term
contracts not billed to customers, and reflect the
proportionate elements of profit as revenues based on stage of
completion of long term contracts.


.I 16918
.C
hog;livestock;
.W
**Ia-So Minn direct hogs estimated rcpts 95,000 vs actual week ago 93,000 and actual year ago 93,000.
Blah blah blah.

.I 16920
.C
money-fx
.W
******FED SETS TWO BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 16921
.C
fuel
.W
GLOBAL RAISES HEAVY FUELS PRICES.
    New York, March 30 - Global Petroleum Corp said today it
raised its posted prices for numbers six fuel cargoes in the
new york harbor 70 cts to 1.60 dlrs per barrel, depending on
grade.
    Effective today, the new prices are: 0.3 pct sulphur 22.50
dlrs, up 1.25; 0.5 pct sulphur 21.85 dlrs, up 1.60; one pct
sulphur 20.10 dlrs, up 70 cts; two pct sulphur 19.85, up 75
cts; 2.2 pct sulphur 19.25 dlrs, up 90 cts; 2.5 pct sulphur
18.80 dlrs, up 1.20, the company said.


.I 16925
.C
money-fx
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 30 - The Federal Reserve entered the U.S.
Government securities market to arrange two billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-3/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 16928
.C
acq
.W
BOW VALLEY INDUSTRIES<BVI> SETS SECONDARY ISSUE.
    CALGARY, Alberta, March 30 - Bow Valley Industries Ltd said
it filed a preliminary short form prospectus in Canada and the
United States for a secondary offering of 22.8 pct of
outstanding common stock, or 9,362,197 common shares, being
sold by certain shareholders.
    The company said Bowcan Holdings Inc, a holding company
principally owned by the Seaman brothers of Calgary and Charles
Rosner Bronfman Trust of Montreal, is offering to sell all of
its holding of 8,279,665 Bow Valley common shares.
    The balance of the offering is owned directly and
indirectly by various trusts of Jean and Charles deGunzberg.
    Proceeds and expenses from the secondary offering of Bow
Valley Industries common shares are for the account of the
selling shareholders, the company said.
    The shareholders will engage Salomon Brothers Inc for
distribution of the shares in the United States and McLeod
Young Weir Ltd for distribution in Canada.


.I 16929
.C
gold
.W
<CORNUCOPIA RESOURCES LTD> IN DRILLING PROGRAM.
    VANCOUVER, March 30 - Cornucopia Resources Ltd said an
extensive drill and sampling program will begin in mid-April at
its Ivanhoe gold property in north central Nevada.
    It said it will seek to increase the present reserves of
eight mln short tons grading 0.045 ounce of gold per ton that
had been found by USX Corp <X> on a small portion of the
13,.000 acre property, determine the location of possible
high-grade ore zones at depth and test other targets.


.I 16931
.C
earn
.W
COGNITRONICS CORP <CGN> 4TH QTR LOSS.
    STAMFORD, Conn., March 30 -
    Shr loss 78 cts vs loss 18 cts
    Net loss 1,671,000 vs loss 382,000
    Revs 3,261,000 vs 4,427,000
    Year
    Shr loss 1.35 dlr vs loss 15 cts
    Net loss 2,902,000 vs loss 331,000
    Revs 13.5 mln vs 16.1 mln
    NOTE: 1986 and 1985 4th qtr net includes charges of 867,000
dlrs or 40 cts a share and 222,000 or 10 cts a share,
respectively.


.I 16932
.C
acq
.W
******ALLEGHENY INTERNATIONAL SELLS WILKINSON SWORD GROUP FOR 230 MLN DLRS.
Blah blah blah.

.I 16933
.C
acq
.W
HENLEY <HENG> HAS SANTA FE SOUTHERN <SFX> STAKE.
    NEW YORK, March 30 - Henley Group said in a 10-K filing
with the Securities and Exchange Commission that it has 7.9 mln
shares or close to five pct of Santa Fe Southern Pacific Corp,
a spokesman said.
    In response to questions from Reuters, the Henley spokesman
said the filing was as of December 31, 1986, but that the
company still holds the shares.
    "It's an investment and we're very happy with it. Beyond
that, I have no comment," the spokesman said.
   


.I 16934
.C
crude
.W
MEXICAN FIRST QTR CRUDE EXPORTS SEEN AT 15.25 DLRS.
    MEXICO CITY, March 30 - The average price of mexico's crude
oil exports in first quarter 1987 will be 15.25 dlrs per
barrel, according to preliminary figures issued in a press
release by the state oil company Petroleos Mexicanos (PEMEX).
    It gave no direct comparison with the year-ago figure but
said crude and products sales were expected to rise to 1.99
billion dlrs this quarter, 420 mln dlrs higher than expected
and 22 pct better than the year-ago quarter.
    Prospects for the second quarter were relatively favourable
with crude exports seen at 1.320 mln bpd after an expected
1.324 mln this month, 1.323 in February and 1.395 mln in
January.


.I 16935
.C
acq
.W
COMBUSTION <CSP> COMPLETES ACCURAY <ACRA> BUY.
    STAMFORD, Conn., March 30 - Combustion Engineering Inc said
it has completed the previously-announced acquisition of
AccuRay Corp in a merger trasaction that closed Friday at 45
dlrs per share.


.I 16937
.C
coffee
.W
U.S. SEES NO NEW COFFEE AGREEMENT TALKS SOON.
    WASHINGTON, March 30 - The United States does not expect
the executive board meeting of the International Coffee
Organization, ICO, to call for a new round of negotiations on
reinstating coffee quotas, a U.S. government official said.
    The official, a member of the U.S. delegation to ICO talks
earlier this year, said no new coffee agreement talks are
expected because there is no indication the negotiating
positions of major producers and consumers have changed.
    The U.S. still demands, as a condition of reimposition of
coffee quotas, that "objective criteria" be set for
establishing quotas, said the U.S. official, who asked not to
be identified. Brazil, the major producer, insists on quotas
based on a traditional formula.
    The U.S. remains open to a negotiating meeting but only if
some new flexibility is apparent from major countries, the
official said.
    The ICO executive board meets tomorrow in London.


.I 16938
.C
earn
.W
INTELLIGENT SYSTEMS <INP> SETS INITIAL PAYOUT.
    NORCROSWS, Ga., March 30 - Intelligent Systems Master
Limited Partnership said its board declared an initial
quarterly dividend of 25 cts per unit, payable April 10 to
holders of record March 31.
    The partnership, formed at year-end by the conversion of
Intelligent Systems Corp from corporate form, said its board
has approved in principle quarterly dividend of 15 to 25 cts
per quarter for calendar 1987.
    It said as part of its restructuring it may sell some of
its assets this year, with unitholders receiving either cash
from the sale or stock in the acquiring company.


.I 16940
.C
earn
.W
QUEST MEDICAL INC <QMED> 4TH QTR LOSS.
    DALLAS, March 30 -
    Shr loss six cts vs profit two cts
    Net loss 463,473 vs profit 126,835
    Revs 3,506,066 vs 3,082,499
    Year
    Shr loss four cts vs profit three cts
    Net loss 323,214 vs profit 187,893
    Revs 13.8 mln vs 10.8 mln


.I 16943
.C
oilseed;wheat;grain;soybean;
.W
TRADE SEES U.S. CORN EXPORTS UP, WHEAT/BEANS OFF.
    CHICAGO, March 30 - Grain traders and analysts expect lower
wheat and soybean exports and higher corn exports than a year
ago in the USDA's export inspection report today.
    Corn export guesses ranged from 27.0 mln to 32.0 mln
bushels, compared with the 27.6 mln inspected last week and
20.5 mln a year ago.
    Soybean export guesses ranged from 14.0 mln to 16.0 mln, up
from the 13.4 mln inspected last week but below the 25.5 mln
reported a year ago.
    Wheat estimates ranged from 11.0 mln to 14.0 mln bushels,
compared with 12.0 mln reported last week and 18.3 mln a year
ago.


.I 16944
.C
acq
.W
OPPENHEIMER HAS SIX PCT OF CYCLOPS <CYL>.
    WASHINGTON, March 30 - Oppenheimer, the brokerage and
investment subsidiary of Oppenheimer Group Inc, told the
Securities and Exchange Commission it has acquired 243,400
shares of Cyclops Corp, or 6.0 pct of the total outstanding.
    Oppenheimer said it bought the stake in connection with
risk arbitrage and other investment activities in the ordinary
course of its business. It said it has no plans to seek control
of the company.
    As of Friday, <Dixons Group PLC> had acquired 2,455,000
Cyclops shares, giving it 83 pct of the total.


.I 16945
.C
earn
.W
DUNE RESOURCES LTD <DNLAF> 4TH QTR NET.
    OKLAHOMA CITY, March 30 -
    Shr profit one ct vs loss two cts
    Net profit 27,000 vs loss 69,000
    Revs 295,000 vs 264,000
    Year
    Shr loss eight cts vs loss three cts
    Net loss 262,000 vs loss 88,000
    Revs 1,004,000 vs 1,248,000


.I 16946
.C
earn
.W
AW COMPUTER SYSTEMS INC <AWCSA> YEAR END DEC 31.
    MT LAUREL, N.J., March 30 -
    Shr 18 cts vs 17 cts
    Net 584,493 vs 540,977
    Revs 4,685,930 vs 4,524,315


.I 16947
.C
rubber;pet-chem;
.W
DOW<DOW> RAISES STYRENE-BUTADIENE LATEX PRICES.
    MIDLAND, MICH., March 30 - Dow Chemical Co said it
increased prices by nine cts a pound (solids) for
styrene-butadiene latex and plastic pigments, effective May
One. Dow did not release the percentage increase.
    It said the increase will affect the floor covering
markets, paper, paperboard and specialty markets.
    It said the increase is in addition to a previously
announced seven cts a pound (solids) increase, effective March
One.


.I 16948
.C
acq
.W
ALLEGHENY INTERNATIONAL <AG> SELLS WILKINSON.
    PITTSBURGH, March 30 - Allegheny International Inc said it
sold its Wilkinson Sword Consumer Group to the <Swedish Match
Co> of Stockholm for for 230 mln dlrs.
    After settlement of intercompany transactions between the
Wilkinson Sword groups and Allegheny, the net payment by
Swedish Match will amount to about 160 mln dlrs.
    The Wilkinson Sword Group was transferred to the Swedish
Match Co today except for companies in certain countries where
approval from government authorities is required, the company
said.
    Allegheny said it acquired a 44 pct interest in Wilkinson,
then known as Wilkinson Match Ltd, in 1978, and the remaining 
share in 1980.
    This divestiture is part of Allegheny's overall
restructuring program and strategy to concentrate primarily on
its North American consumer products business, the company
said.


.I 16952
.C
earn
.W
DATRON CORP <DATR> 4TH QTR NET.
    MINNEAPOLIS, March 30 -
    Shr 19 cts vs 13 cts
    Net 166,000 vs 118,000
    Rev 3.2 mln vs 2.5 mln
    Year
    Shr 34 cts vs 30 cts
    Net 303,000 vs 269,000
    Rev 10.8 mln vs 10.2 mln


.I 16953
.C
acq
.W
C.O.M.B. <CMCO> SELLS THREE RETAIL STORES.
    MINNEAPOLIS, March 30 - C.O.M.B. Co said it sold three of
its retail stores in Omaha to Bob Cummins Enterprises Inc, a
retail closeout merchandiser.
    It said the sale is consistent with its previously
announced Retail Division restructuring plans.



.I 16954
.C
earn
.W
CENTRONICS <CEN> SETS PREFERRED PURCHASE RIGHTS.
    NASHUA, N.H., March 30 - Centronics Corp said its board
declared a dividend distribution of one preferred share
purchase right on each outstanding common share payable to
holders of record April 9.
    The rights, which will expire 10 years later, will entitle
shareholders to buy one-hundredth of a share of a new series of
preferred at an exercise price of 20 dlrs.
    The rights will be exercisable only if some one acquires 30
pct or more of Centronic's common or announces an offer which
would result in ownership of 30 pct or more of the stock.
    Centronics said its board will be entitled to redeem the
rights at two cts per right at any time before a 30 pct
position has been acquired.
    If the rights become exercisable, the company said, those
held by shareholders other than the owner of 30 pct or more of
the stock will entitle the holder to purchase a number of
common shares having a market value twice the right's exercise
price.


.I 16955
.C
earn
.W
MCCLAIN INDUSTRIES <MCCL> SETS STOCK SPLIT.
    STERLING HEIGHTS, Mich., March 30 - McClain Industries Inc
said its board declared a four-for-three stock split, payable
30, record April 15.
    The company also said it plans to open within the next 90
days a 114,000 square foot plant in Macon, Ga., that will allow
it to expand production of transfer trailers and other
products.


.I 16956
.C
acq
.W
HERITAGE COMMUNICATIONS <HCI> IN SPECIAL MEETING.
    DES MOINES, Iowa, March 30 - Heritage Communications Inc
said it expects to hold a special shareholder meeting in May to
consider its proposed acquisition by an investor group
including members of senior management and Tele-communications
Inc <TELE>.
    The company said it is seeking to obtain all regulatory
approvals needed to complete the transaction before or shortly
after the special meeting.  Heritage said it has filed
preliminary proxy materials with the Securities and Exchange
Commission and has applied for a change of control of its
broadcast licenses with the Federal Communications Commission.
    Heritage it and Tele-Communications made required
Hart-Scott-Rodino filings with the Federal Trade Commission and
Justice Department on March 11 and 12, respectively.


.I 16958
.C
earn
.W
CHEROKEE GROUP INC <CHKE> 1ST QTR FEB 28 NET.
    NORTH HOLLYWOOD, Calif., March 30 -
    Shr 22 cts vs 16 cts
    Net 2,460,000 vs 1,730,000
    Sales 37.0 mln vs 27.3 mln
    NOTE: Share adjusted for two-for-one stock split in
February 1987.


.I 16960
.C
acq
.W
LOUISIANA PACIFIC <LPX> TO BUY WALLBOARD PLANT.
    PORTLAND, Ore., March 30 - Louisiana Pacific Corp said it
reached a non-binding agreement in principle to buy a gypsum
wallboard plant in Seattle from Norwest Gypsum.
    Purchase price and other details of the agreement were not
disclosed.


.I 16962
.C
acq
.W
NOBEL'S BOFORS TO SELL ITS SINGAPORE HOLDING.
    STOCKHOLM, March 30 - Nobel Industries Sweden SA <NOBL.ST>
said its arms subsidiary, <AB Bofors>, plans to sell its 40 pct
stake in <Allied Ordnance Co of Singapore Ltd> because of its
part in weapons exports which contravene Swedish law.
    "The events we have uncovered are unacceptable and highly
regrettable incidents in our company's history," Nobel chairman
Lars-Erik Thunholm told a news conference.
    Nobel managing director Anders Carlberg said an internal
inquiry has revealed an extensive network of international arms
smuggling.


.I 16963
.C
coffee
.W
ICO BOARD SEEN UNLIKELY TO SET NEW COFFEE TALKS.
    By Lisa Vaughan, Reuters
    LONDON, March 30 - Chances that the International Coffee
Organization, ICO, executive board meeting this week will agree
to resume negotiations on export quotas soon look remote, ICO
delegates and trade sources said.
    ICO observers doubted Brazil or key consuming countries are
ready to give sufficient ground to convince the other side that
reopening negotiations again would be worthwhile, they said.
    ICO talks on quotas last month broke down after eight days
when producers and consumers failed to reach agreement.
     "Since we have not seen signs of change in other positions,
it's difficult to see a positive outcome at this stage,"
Brazilian delegate Lindenberg Sette said. But quotas must be
negotiated sometime, he said.
     The U.S. has indicated it is open to dialogue on quotas
but that Brazil must be flexible, rather than refuse to lower
its export share as it did in the last negotiations, delegates
said.
     At this week's March 31-April 2 meeting, the 16-member ICO
board is scheduled to discuss the current market situation, the
reintroduction of quotas, verification of stocks and some
administrative matters, according to a draft agenda.
    The fact that Brazilian Coffee Institute president Jorio
Dauster, Assistant U.S. Trade Representative Jon Rosenbaum and
chief Colombian delegate Jorge Cardenas are not attending the
meeting has signalled to most market watchers that it will be a
non-event as far as negotiating quotas is concerned.
    "I would imagine there will be a lot of politicking among
producers behind closed doors to work up some kind of proposal
by September (the next scheduled council meeting)," Bronwyn
Curtis of Landell Mills Commodities Studies said.
    Traders and delegates said they have seen no sign that a
date will be set for an earlier council meeting.
    If the stalemate continues much longer, analysts expect the
coffee agreement will end up operating without quotas for the
remainder of its life, to September 30, 1989.
    When talks broke down, the U.S. and Brazil, the largest
coffee consumer and producer respectively, blamed one another
for sabotaging negotiations by refusing to compromise.
    Brazil wanted to maintain the previous export quota shares,
under which it was allocated 30 pct of world coffee exports,
but consumers and a small group of producers pressed for shares
to be redistributed using "objective criteria," which would have
threatened Brazil's share.
    At a recent meeting in Managua of Latin American producers,
Costa Rica and Honduras said they were willing to put their
objections as members of the group of eight ICO "dissident"
producers aside, in order to stem the damaging decline in
prices, Nicaraguan External Trade Minister Alejandro Martinez
Cuenca told reporters Saturday. He was in London to brief
producers on the Managua meeting.
    However, other producers said they were not aware of this
move toward producer solidarity.
    London coffee prices closed at 1,276 stg a tonne today,
down from around 1,550 at the beginning of March.


.I 16964
.C
veg-oil
.W
MINISTER SEES ENOUGH EC STATES AGAINST OILS TAX.
    BRUSSELS, March 30 - Enough European Community (EC) states
appear to be opposed to the proposals by the EC Commission for
a 330 European currency unit (Ecu) a tonne tax on vegetable
oils, fats and marine oils to block adoption by EC ministers,
British Farm Minister Michael Jopling said.
    He told a news conference held during a meeting here of EC
agriculture ministers that Britain, West Germany, the
Netherlands, Denmark, and Portugal were all against the tax.
    Between them, these five countries had more than enough
votes in the weighted voting system used in EC ministers'
meetings to block a decision, Jopling said.


.I 16965
.C
earn
.W
DRAVO <DRV> TO HAVE FIRST QUARTER LOSS.
    PITTSBURGH, March 30 - Dravo Corp said it expects a first
quarter loss of about 30 cts per share, compared with a
year-earlier profit of one ct, and said operating earnings for
all of 1987 may not match 1986's earnings of 61 cts per share
from continuing operations.
    Dravo saidperformance so far this year in its engineering
and construction segment has not met earlier expectations.
    It said the first quarter will be impacted by writedowns
resulting fromn revised estimates of costs required to complete
projects and by delays in starting work on jobs originally
forecasted to contribute to first quarter earnings.
    Dravo further said it has given the investor group buying
Dravo's river transportation, stevedoring and pipe frabrication
businesses additional time to structure the necessary
permanenty financing, and closing is now expected in the third
quarter.


.I 16966
.C
trade
.W
ECONOMIC SPOTLIGHT - U.S. CONGRESS RAPS JAPAN.
    By Jacqueline Frank,
    WASHINGTON, March 30 - The U.S. Congress is making Japan,
with its enormous worldwide trade surplus, the symbol of the
U.S. trade crisis and the focus of its efforts to turn around
America's record trade deficit.
    "Japan has come to symbolize what we fear most in trade: the
challenge to our high technology industries, the threat of
government nutured competition, and the multitude of barriers
to our exports," Senate Democratic Leader Robert Byrd said.
    "If we can find a way to come to terms with Japan over trade
problems, we can manage our difficulties with other countries,"
the West Virginia Democrat said at a Senate Finance Committee
hearing on the trade bill.
    Byrd and House Speaker Jim Wright, a Texas Democrat, have
made trade legislation a priority this year and a wide-ranging
bill is being readied for probable House approval next month.
    Japan's bilateral trade surplus jumped from 12 billion dlrs
in 1980 to 62 billion dlrs last year. Its surplus rose to 8.14
billion dlrs in February from 5.7 billion dlrs in January.
    Congress points to the record 169 billion dlrs U.S. trade
deficit in 1986 and the slow response in the trade imbalance to
the dollar's decline in world currency markets as a reason to
press Japan to buy more U.S. goods.
    They are particularly dismayed by the rapid deterioration
in U.S. exports of sophisticated computer technology.
    In response to the growing anger and pressure by the U.S.
semiconductor industry, President Reagan Friday announced he
intended to raise tariffs as much as 300 mln dlrs on Japanese
electronic goods in retaliation for Japan's failure to abide by
a 1986 U.S.-Japanese semiconductor agreement.
    Congress also has been been angered by the administration's
lack of success with Japan on a host of other trade issues
including beef, citrus, automobile parts, telecommunications
goods, and financial services.
    The bulk of the House trade bill was written last week in
four committees. It is a package of trade sanctions and
measures to force the administration take tough action against
foreign trade barriers and unfair competition.
    Although most provisions do not single out Japan, in many
cases their impact would be to restrict imports of Japanese
products or make them more expensive with higher duties.
    The cornerstone of the trade legislation passed the House
Ways and Means Committee by a vote of 34 to 2. Its focus is to
force President Reagan to retaliate against unfair foreign
competition and to make it easier for U.S. industries to win
temporary relief from surges in imports.
    The most controversial issue, an amendment to restrict
imports if countries such as Japan with large surpluses do not
buy more U.S. goods was left for an April vote by the House.
    Rep. Richard Gephardt, a Democratic presidential aspirant
from Missouri, has the support of Wright and other key
Democrats to press for passage of the amendment.
    The measure would have the most impact on Japan, West
Germany, Taiwan and South Korea. If Japan, for example, does
not reduce its barriers by mid-1988, the United States would
set import quotas or tariffs to cut Japanese surplus by ten per
cent a year for three years.
    "I'm tired of going into companies and having managers say
to me, 'We're not over competing in Japan because we can't
compete in the marketplace.' That argument needs to be taken
away from American business," Gephardt said.
    The administration has said it could not support a trade
bill containing such a provision.
    

.I 16968
.C
earn
.W
GENERAL PUBLIC UTILITIES CORP <GPU> TWO MTHS NET.
    PARSIPPANY, N.J., March 30 -
    Shr 97 cts vs 81 cts
    Net 60.8 mln vs 51.1 mln
    Revs 487.4 mln vs 529.7 mln
    12 mths
    Shr 3.42 dlrs vs 2.18 dlrs
    Net 215.0 mln vs 137.2 mln
    Revs 2.74 billion vs 2.88 billion
    NOTE: 1986 results restated for change in accounting.


.I 16969
.C
acq
.W
KAUFMAN, BOARD <KB> UNITS CUT QUAKER <KSF> STAKE.
    WASHINGTON, March 30 - Kaufman and Board Inc and its
insurance subsidiaries said they lowered their stake in Quaker
State Oil Refining Corp to 1,795,908 shares, or 6.9 pct of the
total outstanding, from 2,120,908 shares, or 8.1 pct.
    In a filing with the Securities and Exchange Commission,
the Kaufman and Board group, which includes Sun Life Group,
said it sold 325,000 Quaker State common shares between Feb 27
and March 23 at prices ranging from 28.00 to 31.00 dlrs each.



.I 16970
.C
acq
.W
BUSINESSMAN HAS 5.7 PCT OF ARDEN GROUP <ARDNA>.
    WASHINGTON, March 30 - Saul Brandman, a California business
executive, told the Securities and Exchange Commission he has
acquired 118,714 shares of Arden Group Inc, or 5.7 pct of the
total outstanding common stock.
    Brandman, chairman of Domino of California Inc, a Los
Angeles garment maker, said he bought the stake for 3.1 mln
dlrs for investment purposes.
    He said he may buy more Arden Group shares, or he may sell
some or all of his current stake. He also said he has no plans
to seek control of the company.


.I 16974
.C
money-fx
.W
FED WILL BUY BILLS FOR CUSTOMER AFTER AUCTION.
    NEW YORK, March 30 - The Federal Reserve said it will enter
the U.S. Government securities market after the 1300 EST weekly
bill auction to purchase around 900 mln dlrs of Treasury bills
for customers, a spokesman said.
    He said the Fed will purchase bills with maturities from
May through September 10.
    Dealers said Federal funds were trading at 6-3/8 pct when
the Fed announced the operation.


.I 16978
.C
earn
.W
METROMAIL CORP <MTML> 3RD QTR MARCH 1 NET.
    LINCOLN, Neb., March 30 -
    Shr 25 cts vs 32 cts
    Net 2,414,500 vs 3,027,500
    Rev 26.2 mln vs 23.5 mln
    Nine months
    Shr 76 cts vs 82 cts
    Net 7,214,900 vs 7,752,800
    Rev 69.2 mln vs 64.9 mln


.I 16979
.C
acq
.W
ORANGE <OJAY> IN DEFINITIVE PACT TO SELL UNITS.
    NEW YORK, March 30 - Orange Julius International Inc said
it entered into a definitive agreement to sell Orange Julius of
America and Orange Julius Canada Limited to H.C. Holdings Inc,
owned by Branford Castle Inc, a merchant banker, members of its
management and certain of its shareholders.
    Orange said the purchase price will consist of 19 mln dlrs
in cash and 10 pct redeemable preferred, 10 pct of HC's common
equity, and the right for it to prospectively receive 20 pct of
certain royalties under a proposed licensing program.
    It said HC also agreed to lend up to 600,000 dlrs to it in
advance of closing and it had already received 300,000 dlrs.
    Orange Julius announced the proposed sale of the units when
a letter of intent was signed February 17.
    The company said it is reviewing other offers to buy the
units and if it decides to accept another offer it will pay HC
an agreed upon amount and reimburse HC for its expenses.


.I 16980
.C
earn
.W
SIERRACIN CORP <SER> 4TH QTR NET.
    SYLMAR, Calif., March 30 -
    Oper shr profit nine cts vs loss 26 cts
    Oper net profit 313,000 vs loss 860,000
    Revs 18.8 mln vs 16.4 mln
    Year
    Oper shr profit 45 cts vs loss 47 cts
    Oper net profit 1,543,000 vs loss 1,582,000
    Revs 72.7 mln vs 61.4 mln
    Note: Current qtr and year figures exclude losses from
discontinued operations of 179,000 dlrs, or five cts per share
and 901,000 dlrs, or 27 cts per share, respectively.
    Prior qtr and year figures exclude losses from discontinued
operations of 600,000 dlrs, or 17 cts per share and 1.1 mln
dlrs, or 33 cts per share, respectively.



.I 16982
.C
earn
.W
COMPUTER MICROFILM CORP <COMI> YEAR NET.
    ATLANTA, March 30 -
    Shr 23 cts vs 14 cts
    Net 439,100 vs 259,948
    Revs 9,918,413 vs 9,683,392
    NOTE: Share adjusted for five pct stock dividend.


.I 16983
.C
earn
.W
COMPUTER MICROFILM <COMI> SEES HIGHER 1987 NET.
    ATLANTA, March 30 - Computer Microfilm corp said it expects
revenues of over 12.5 mln dlrs and higher earnings in 1987.
    The company today reported 1986 earnings of 439,100 dlrs on
revenues of 9,918,413 dlrs, up from earnings of 259,948 dlrs
and revenues of 9,683,392 dlrs a year before.


.I 16984
.C
earn
.W
KEVLIN MICROWAVE CORP <KVLM> 3RD QTR FEB 28 NET.
    WOBURN, Mass., March 30 -
    Shr profit nil vs profit five cts
    Net profit 9,879 vs profit 118,852
    Revs 1,581,894 vs 1,878,052
    Avg shrs 2,627,952 vs 2,617,090
    Nine mths
    Shr loss two cts vs profit 24 cts
    Net loss 51,001 vs profit 619,860
    Revs 4,006,024 vs 6,646,587
    Avg shrs 2,532,959 vs 2,621,397
    NOTE: Nine mth orders 4,601,463 dlrs, up 39 pct, and
backlog at end of period 4,906,670 dlrs, up 83 pct from a year
before.


.I 16985
.C
earn
.W
UNIFAST INDUSTRIES INC <UFST> YEAR NET.
    NEW YORK, March 30 -
    Shr 62 cts vs 19 cts
    Net 961,826 vs 226,429
    Sales 22.8 mln vs 16.1 mln
    Avg shrs 1,543,230 vs 1,172,039


.I 16986
.C
earn
.W
AZTEC MANUFACTURING CO <AZTC> 4TH QTR LOSS.
    CROWLEY, Texas, March 30 -
    Shr loss 77 cts vs loss 1.49 dlrs
    Qtly div two cts vs two cts prior
    Net loss 3,860,000 vs loss 7,541,000
    Sales 2,538,000 vs 3,648,000
    Year
    Shr loss 78 cts vs loss 1.58 dlrs
    Net loss 3,935,000 vs loss 7,999,000
    Sales 10.5 mln vs 16.3 mln
    NOTE: Dividend pay April 24, record April 10.
    1986 net both periods includes pretax charge 2,944,000 dlrs
from writedown of assets and provision 726,000 dlrs for
obsolete and nonproductive inventory and other items.


.I 16987
.C
earn
.W
GAC LIQUIDATING TRUST <GACTZ> YEAR NET.
    CORAL GABLES, Fla., March 30 -
    Shr 1.05 dlrs vs 27 cts
    Net 4,193,000 vs 1,070,000
    Revs 9,377,000 vs 9,444,000
    NOTE: 1986 net includes gain two mln dlrs from reduction of
loss allowance on undeveloped land.


.I 16989
.C
acq
.W
INVESTOR HAS 8.0 PCT OF ALLEGHENY INT'L <AG>.
    WASHINGTON, March 30 - A group of firms and funds
controlled by New York investor Mario Gabelli said it has
acquired the equivalent of 882,507 shares of Allegheny
International, or 8.0 pct of the total outstanding.
    In a filing with the Securities and Exchange Commission,
the Gabelli group said it bought the stake as part of its 
business and not in an effort to seek control of the company.
    It said it may by more shares or sell some or all of its
current stake. The stake includes 782,000 common shares and
cumulative convertible preferred stock which could be converted
into 100,507 common shares.


.I 16992
.C
austdlr;nzdlr;
.W
U.S. CORPORATE FINANCE - NEW ZEALAND DLR FRNS.
    By John Picinich, Reuters
    NEW YORK, March 30 - Floating-rate notes denominated in a
foreign currency, a relatively new wrinkle on Wall Street, will
probably be issued infrequently because the so-called "window
of opportunity" opens and closes quickly, traders say.
    "In just two days we had as many issues. As a result, the
market became glutted," said one trader.
    He said the window depends more on supply than on foreign
exchange or interest rate risk, at least for the moment.
"Obviously, currency risk is important. But there is a limited
number of investors right now for the paper," he said.
    On Thursday, Bear, Stearns and Co sole-managed a 100 mln
New Zealand dlr offering of three-year floating-rate notes
issued by Ford Motor Credit Co, a unit of Ford Motor Co <F>.
    The initial rate for the notes will be set on April 15, and
quarterly after that, at 200 basis points below the 90-day New
Zealand bank bill rate. They are non-callable for life.
    This followed by a week another Bear Stearns-led offering
of the same amount of New Zealand dollar notes for Dow Chemical
Co <DOW>. The initial rate was also to be initially set on
April 15, and quarterly after that, at 340 basis points below
the same 90-day New Zealand rate.
    Because the Dow Chemical notes carried an interest rate
floor of 17 pct, the issue saw strong investor demand,
underwriters said.
    But the Ford Credit notes and Friday's offering of 130 mln
New Zealand dlrs of floating-rate notes due 1990 issued by
General Electric Co's <GE> General Electric Credit Corp via
Prudential-Bache Securities Inc, did not have such a floor.
    "Obviously, the two firms did not want to issue floaters
and face the risk of New Zealand rates falling sharply," an
underwriter away from the syndicates said. He and others noted
that the New Zealand 90-day rate was 27 pct late last week.
    An underwriter familiar with the Dow Chemical deal pointed
out that because of the interest rate and currency swaps Dow
did, the issuer felt comfortable setting a rate floor.
    Domestic offerings of foreign currency denominated date
first surfaced in Fall 1985. By using currency and rate swaps,
companies can sell debt that pays a high interest rate in a
foreign currency like Australian or New Zealand dollars. But
the issuers actually realize savings on borrowing costs.
    "I would say that every company which issued foreign
currency debt saved some basis points when compared to
same-maturity plain vanilla U.S. issues," an analyst said.
    Investors, mainly institutions, were attracted to the early
issues because of the high interest rates. They were willing to
absorb foreign currency risk until mid-1986, when sharp slides
posted by the Australian and New Zealand dollars brought such
issuance to a quick halt.
    It was not until late last year, after the currencies
stabilized, that companies again started issuing debt
denominated in Australian and New Zealand dollars.
    But many investors have still shied away from the debt,
remembering the mid-1986 downturn of the Australian and New
Zealand dollars, analysts noted.
    To attract some of those investors back to the fold,
underwriters like Bear Stearns decided to structure the foreign
currency issues as floating rate debt, sources said.
    This occurred against a backdrop of uncertainty over the
course of U.S. interest rates for the intermediate term, and
predictions by a number of economists that Treasury yields
would rise in the second half of the year, the sources noted.
    A Bear Stearns officer said more than half of the Ford
Credit notes were sold by late Friday afternoon, the second day
of offering. "That is quicker than some recent fixed-rate New
Zealand dollar note issues," he said.
    However, underwriters away from the Bear Stearns syndicate
said the issue may have sold even faster if Prudential-Bache
did not offer the General Electric Credit notes on Friday.
    They pointed out that the Ford notes were rated A-1 by
Moody's Investors and AA-minus by Standard and Poor's, while
the General Electric notes, which had the same interest rate
terms and were also non-callable to maturity, carried
top-flight AAA ratings by both agencies.
    "We have sold 20 to 25 pct of the GE notes. For first-day
sales on a Friday afternoon, I'm happy with the results," an
officer on Prudential-Bache's syndicate desk said.
    Investors pay the U.S. dollar equivalent of the foreign
currency-denominated notes, underwriters said.
    Investment bankers said the next floating-rate issue of New
Zealand or Australian dollar-denominated debt is probably a few
weeks away.
    "I would like to underwrite a deal a day. But with the Dow,
Ford and GE offerings, the marketplace has had enough for the
time being," the Prudential-Bache officer admitted.
    Meanwhile, IDD Information Services said the 30-day
corporate visible supply fell to 3.29 billion dlrs last week
from 3.98 billion dlrs in the previous week.


.I 17002
.C
acq
.W
<CLAYTON AND DUBILIER INC> SELLS BURPEE.
    NEW YORK, March 30 - Privately-held Clayton and Dubilier
Inc said it has sold W. Atlee Burpee Co to a new company formed
by Wicks Capital Corp, Bankers Trust New York Corp <BT> aND
Burpee management for undisclosed terms.
    The garden supply company was acquired from ITT Corp <ITT>
in December along with O.M. Scott and Sons Co.


.I 17004
.C
earn
.W
GCA CORP <GCA> YEAR.
    ANDOVER, Mass., March 30 -
    Shr loss 1.77 dlrs vs loss 10.47 dlrs
    Net loss 24.9 mln vs loss 123.1 mln
    Revs 123.1 mln vs 156.5 mln
    NOTE:1985 loss includes loss of 51.2 mln dlrs from
discontinued operations. 1986 loss includes gain of 6.8 mln
dlrs from discontinued operations.


.I 17005
.C
earn
.W
DOW <DOW> SEES RECORD ANNUAL PROFITS IN 1987.
    HOUSTON, March 30 - Dow Chemical Co believes strong margins
for chemical products could result in record earnings this
year, Chairman Paul Oreffice said.
    "I'm hoping we will have the best year in our history
profit-wise," he told reporters following a speech at The
American Institute of Chemical Engineers meeting.
    "I believe the entire chemical industry is headed for a
record year, or close to it," Oreffice said.
    In 1986, Dow earned 741 mln dlrs an increase from 1985's 58
mln dlrs brought about by falling oil prices and resulting
cheaper feedstock costs.
    Oreffice also said Dow's profit margins on chemical
products would improve this year over last year.
    He said reduced capacity in the chemical industry and the
weakened U.S. dollar would also contribute to the company's
improved performance.
    Dow will spending about 650 mln dlrs on research and
development in 1987 with an emphasis on new specialty
chemicals, Oreffice said.


.I 17007
.C
earn
.W
CHEROKEE GROUP <CHKE> 1ST QTR FEB 28 NET.
    NORTH HOLLYWOOD, Calif., March 30 -
    Shr 22 cts vs 16 cts
    Net 2,460,000 vs 1,730,000
    Sales 37.0 mln vs 27.3 mln
    Per share figures adjusted for two-for-one stock split of
February 1987.


.I 17008
.C
crude
.W
CRUDE OIL NETBACKS UP IN U.S., MEDITERRANEAN.
    NEW YORK, March 30 - Crude oil netback values in complex
refineries rose slightly in the U.S. and the Mediterranean 
last Friday from the previous week but were lower elsewhere,
according to calculations by Reuters Pipeline.
    The soft tone to refining margins reflects large worldwide
stocks of petroleum products and thin trading activity, traders
said.
    In the U.S. Gulf, sweet crudes rose in value by as much as
26 cts a barrel for West Texas Intermediate, an increase of 1.4
pct from the previous Friday, while sour crudes, such as
Alaska North Slope, were up one pct.
    In the Mediterranean, netback values were up 17 cts to 22
cts a barrel, with Arab Light up 17 cts a barrel to 18.62 dlrs,
a 0.9 pct increase from the previous Friday and Urals were up
22 cts a barrel to 19.16 dlrs, a 1.2 pct increase.
    But netbacks for crude oil refined in Northern Europe was
generally lower with Brent valued at 18.89 dlrs, off 30 cts
from the previous friday, and Bonny Light was off 17 cts to
19.58 dlrs a barrel.
    Refinery netbacks in Singapore were also lower, with
heavier and sour crudes weakest. Arab Heavy dropped 10 cts to
16.63 dlrs a barrel and Dubai was off 12 cts to 18.09 dlrs.
    On the U.S. West Coast, however, netback values for ANS CIF
L.A. were weaker with weak gasoline prices sending the yield at
cracking plants down 68 cts to 18.42 dlrs from the previous
Friday, as shown below in dlrs a barrel.
TOPPING.........15.63......16.10......14.30
CRACKING........18.42......19.10......16.86
    The Mediterranean region also showed netback values rising
last Friday over the previous week with the largest gains shown
by Es Sider and the heavier Urals crude oil, which were each up
22 cts a barrel last Friday to 19.40 dlrs and 19.16 dlrs a
barrel, respectively.
    Netback values for the mediterranean region are shown below
in dlrs a barrel.
GRADE...........MAR 27.....MAR 20.....FEB 27
ES SIDER........19.40......19.18......16.44
ARAB LIGHT......18.61......18.44......15.52
IRAN LT.........19.25......19.08......16.16
KUWAIT..........18.51......18.33......15.42
URALS cif.......19.16......18.94......16.07
    Netbacks in Northern Europe's refinery region were lower
last friday from the previous week with Brent falling 1.6 pct
to 18.89 dlrs a barrel.
     Netbacks for other grades of oil refined in Northern
Europe are shown below in dlrs a barrel.
................MAR 27.....MAR 20.....FEB 27
BRENT...........18.89......19.19......16.77
BONNY LIGHT.....19.58......19.75......17.15
ARAB LIGHT......18.49......18.52......16.07
URALS CIF.......19.02......18.98......16.54
    Refinery netbacks in Singapore were also lower with heavier
and sour crudes weakest.
    Arab Heavy dropped 10 cts to 16.63 dlrs a barrel and Dubai
was off 12 cts to 18.09 dlrs.
     Netbacks for other grades of oil refined in Singapore  are
shown below in dlrs a barrel.
GRADE...........MAR 27.....MAR 20.....FEB 27
ATTAKA..........19.23......19.24......16.72
ARAB LIGHT......18.00......18.10......15.55
OMAN............18.21......18.25......16.31
DUBAI...........18.09......18.21......15.86
ARAB HEAVY......16.63......16.73......14.24


.I 17011
.C
acq
.W
INVESTOR GROUP HAS CIRCLE EXPRESS <CEXX> STAKE.
    WASHINGTON, March 30 - An investor group controlled by New
York Investor David Rocker told the Securities and Exchange
Commission it has acquired 291,400 shares of Circle Express
Inc, or 6.1 pct of the total outstanding common stock.
    The group, Rocker Partners Ltd and Compass Investments Ltd,
said it bought the stake for investment purposes and not as
part of an effort to seek control of the company.



.I 17017
.C
wheat;grain;
.W
FRENCH 1986/87 SOFT WHEAT EXPORTS FALL.
    PARIS, March 30 - Exports of French soft wheat for the
period July 1, 1986, to March 1, 1987, fell 27.6 pct to 8.21
mln tonnes from 11.34 mln tonnes in the same 1985/86 period,
the national cereals office ONIC said quoting customs figures.
    Of this total, exports to non-EC countries totalled 3.76
mln tonnes, 34 pct down on 5.70 mln, and exports to EC nations
4.45 mln tonnes, 21.1 pct down on a previous 5.64 mln.
    Main EC destinations were Italy with two mln tonnes versus
1.9 mln, Belgium 500,000 tonnes (one mln), Netherlands 500,000
(600,000), West Germany 500,000 (800,000), Spain 300,000
(zero), Britain 300,000 (700,000), Greece 200,000 (300,000),
and Ireland 100,000 (200,000).
    In flour, exports totalled 980,000 tonnes, up 6.5 pct on a
previous 920,000 tonnes.
    Exports of maize totalled 4.11 mln tonnes, 37.4 pct up on a
previous 2.99 mln. Exports to non-EC countries were 190,000
tonnes against 140,000 and to EC countries 3.92 mln tonnes
against 2.84 mln.
    Main EC desinations were Netherlands 900,000 (600,000),
Belgium 800,000 (one mln), Britain 700,000 (500,000), West
Germany 400,000 (same), Italy 300,000 (200,000) and Greece
300,000 (zero).


.I 17020
.C
coffee
.W
IBC EXPECTED TO MAINTAIN COFFEE EXPORT FORMULA.
    RIO DE JANEIRO, March 30 - The Brazilian Coffee Institute,
IBC, is expected to maintain its previous pricing system when
it reopens export registrations, probably later this week,
exporters said.
    They said IBC President Jorio Dauster is likely to leave
the basic formula for the minimum registration price unchanged
but raise the contribution quota to partially offset the
effects of cruzado devaluation since April registrations were
closed in mid-February.
    To fully compensate for devaluation the quota would have to
be around 28 dlrs per bag against 7.0 when registrations closed.
    However, even a 21 dlr per bag rise in the contribution
quota would make Brazil coffees uncompetitive on world markets,
and an increase to around 15 dlrs a bag is more likely, the
exporters said.
    They added that Dauster is keen to raise the contribution
quota as the Institute needs money to repay Central Governmnet
funds released to finance IBC purchases at the guaranteed
producer price.
    Although a vote in the Monetary Council to provide more
funds for such purchases was deferred on technical grounds last
week, funds are still being released for subsequent approval.
    The sources said it is still unclear when registrations
will be reopened, although most expect it to be by the end of
this week.
    "Brazil owes it to its customers to make its intentions
know. A country like Brazil cannot afford to be permanently
closed down," one exporter said.
    However, before announcing its export policy the IBC is
likely to wait to see if tomorrow's meeting of the
International Coffee Organisation, ICO, executive board in
London decides to call a full council meeting to discuss
reintroduction of export quotas, sources said.
    There is also talk of the announcement this week of new
measures to adjust the Brazilian economy, and the IBC could be
awaiting clarification before making any move, the exporters
said.
    Another factor which could be delaying the opening of
registrations is the current strike by bank workers which,
while not affecting current shipments, could affect
documentation and currency operations for new sales.
    This would certainly be the case if the IBC was considering
obliging exporters to pay the contribution quota within two or
three days of registering a sale.

.I 17021
.C
acq
.W
<VISTA MANAGEMENT INC> TO MAKE ACQUISITION.
    HIALEAH, Fla., March 30 - Vista Management Inc said it has
agreed to acquire General Energy Development Inc for over
2,200,000 dlrs in cash, with financing to come from mortgage
loans on the National Auto Service Centers General Energy
operates.


.I 17022
.C
acq
.W
GOLDEN POULTRY <CHIK> TO MAKE ACQUISITION.
    ATLANTA, March 30 - golden Poultry Co Inc said it has
signed a letter of intent to purchase privately-held food
distributor Don Lowe Foods Inc of Pompano Beach, Fla., for
undisclosed terms, subject to approval by both boards.
    It said Tampa operations of Lowe are not involved in the
sale.


.I 17023
.C
acq
.W
WILLCOX AND GIBBS <WG> TO MAKE ACQUISITION.
    NEW YORK, March 30 - Willcox and Gibbs Inc said it has
agreed to acquire Atlantia electric parts distributor B and W
Electric Supply Co for an undisclosed amount of cash.
    B and W had sales of about eight mln dlrs in its most
recent year.
    Willcox said it plans further expansion in the Atlanta area.


.I 17024
.C
earn
.W
MISCHER CORP <MSHR> 4TH QTR LOSS.
    HOUSTON, March 30 -
    Shr loss 67 cts vs profit 60 cts
    Net loss 1,398,000 vs profit 1,250,000
    Revs 8,834,000 vs 20.9 mln
    Year
    Shr loss 2.81 dlrs vs loss 15 cts
    Net loss 5,864,000 vs loss 310,000
    Revs 52.1 mln vs 82.7 mln


.I 17025
.C
earn
.W
WICHITA INDUSTRIES INC <WRO> 4TH QTR NET.
    DENVER, March 30 -
    Shr profit 32 cts vs profit eight cts
    Net profit 936,000 vs profit 249,000
    Revs 348,000 vs 1,150,000
    Year
    Shr loss 2.15 dlrs vs loss 19 cts
    Net loss 6,095,000 vs loss 469,000
    Revs 1,554,000 vs 4,254,000
    NOTE: Results include credits of 556,000 and 1,141,000 for
the latest qtr and yr vs 112,000 and 656,000 for prior periods
from tax loss carryforwards.
    Results include after-tax gains of 567,000 for both 1986
periods vs loss of 45,000 for prior periods on disposal of
discontinued operations.
    Prior periods restated to reflect sale of discontinued
operations.


.I 17027
.C
earn
.W
INFODATA SYSTEMS INC <INFD> 4TH QTR NET.
    ROCHESTER, N.Y., March 30 - 
    Shr profit 20 cts vs loss 33 cts
    Net profit 376,470 vs loss 1,555,469
    Revs 3,615,550 vs 2,896,000
    Year
    Shr profit 14 cts vs loss 66 cts
    Net profit 382,014 vs loss 1,128,160
    Revs 11.2 mln vs 11.0 mln


.I 17030
.C
acq;gold;
.W
CITY RESOURCES <CCIMF> TO SELL PROPERTY STAKE.
    VANCOUVER, March 30 - City Resources Ltd said it has agreed
in principle to sell a 50 pct interest in a group of mineral
properties in the southwest Pacific to a buyer it did not name
for 30 mln Canadian dlrs.
    The company said a preliminary estimate of the geological
resources of one of the properties to a depth of 200 meters
indicates a potential of 1.2 mln ounces of gold, and by the
middle of 1987 it expects to establish proven ore reserves
containing at least 500,000 ounces of gold.  It said mining
could start in 1988, subject to a satisfactory prefeasibility
study.
    The company said completion of the transaction is subject
to regulatory and shareholder approvals.
    City Resources is controlled by City Resources Ltd of
Australia.


.I 17032
.C
acq
.W
HUGHES SUPPLY <HUG> TO MAKE ACQUISITION.
    ORLANDO, Fla., March 30 - Hughes Supply Inc said it has
signed a letter of intent to acquire most of the assets of Tri
State Supply Inc, a wholesale distributor of electrinical
fixtures and supplies with sales for the year ending tomorrow
of about 13 mln dlrs.
    Terms were not disclosed.
    It said clopsing is expected around April 30, subject to
approval by Tri State's board and shareholders.


.I 17033
.C
earn
.W
JMB REALTY TRUST <JMBRS> 2ND QTR FEB 28 NET.
    CHICAGO, March 30 -
    Shr 31 cts vs 41 cts
    Net 436,981 vs 583,715
    Six months
    Shr 63 cts vs 82 cts
    Net 901,648 vs 1,160,178


.I 17034
.C
earn
.W
REPUBLIC PICTURES CORP <RPICA> 4TH QTR LOSS.
    LOS ANGELES, March 30 -
    Oper shr loss two cts vs profit eight cts
    Oper net loss 77,000 vs profit 285,000
    Revs 3,781,000 vs 4,721,000
    Year
    Oper shr profit 23 cts vs profit 26 cts
    Oper net profit 904,00 vs profit 952,000
    Revs 19.0 mln vs 15.1 mln
    Note: Current qtr and year figures exclude losses from
discontinued operations of 303,000 dlrs, or seven cts per share
and 354,000 dlrs, or nine cts per share, respectively.
    Net earnings for first three months of 1986 restated to
reflect reduction of 148,000 dlrs resulting from increase in
effvective income tax rate.


.I 17035
.C
earn
.W
EQUIPMENT CO OF AMERICA <ECOA> 4TH QTR NET.
    HIALEAH, Fla., March 30 -
    Oper shr seven cts vs four cts
    Oper net 159,000 vs 94,000
    Sales 4,528,000 vs 3,683,000
    Avg shrs 2,376,000 vs 2,189,000
    Year
    Oper shr 19 cts vs 15 cts
    Oper net 435,000 vs 339,000
    Sales 15.7 mln vs 14.4 mln
    NOTE: Net excludes tax credits of 17,000 dlrs vs 39,000
dlrs in quarter and 268,000 dlrs vs 294,000 dlrs in year.


.I 17039
.C
acq
.W
OHIO MATTRESS <OMT> IN ACQUISITION, SETTLEMENT.
    CLEVELAND, March 30 - Ohio Mattress Co said itr has
executed a definitive agreement to acquire Sealy Mattress Co of
Michigan Inc, the Detroit licensee of Ohio Mattress's 82 pct
owned Sealy Inc subsidiary in a transaction that also involves
a settlement between Sealy and Michigan Sealy.
    The company said on completion of the acquisition, the
Sealy stock owned by Michigan Sealy will be redeemed, raising
Ohio Mattress' interest in Sealy to 93 pct.  Michigan Sealy has
been in litigation against Sealy, alleging violations of
antitrust laws, and Sealy was recently found liable for 45 mln
dlrs in damages to Michigan Sealy.
    Under the acquisition agreement, the company said Sealy
will enter into a cash settlement of its litigation with
Michigan Sealy.
    The company said shareholders of Michigan Sealy will
receive a total of 48.6 mln dlrs, subject to adjustment, from
the acquisition and the settlement, both of which are subject
to regulatory approvals.
    Michigan Sealy had sales of about 12.5 mln dlrs in 1986.


.I 17041
.C
earn
.W
<TOROMONT INDUSTRIES LTD> YEAR NET.
    TORONTO, March 30 -
    Oper shr 49 cts vs 47 cts
    Oper net 1,475,000 vs 1,474,000
    Revs 85.8 mln vs 90.6 mln
    Note: Current shr and net exclude extraordinary loss of
3,413,000 dlrs or 1.13 dlrs shares, versus extraordinary loss
of 63,000 dlrs or two cts share in prior year


.I 17044
.C
earn
.W
AMERON INC <AMN> 1ST QTR FEB 28 LOSS.
    MONTEREY PARK, Calif., March 30 -
    Shr loss 11 cts vs profit six cts
    Net loss 515,000 vs profit 294,000
    Sales 62.8 mln vs 65.4 mln


.I 17046
.C
acq
.W
YORK INTERNATIONAL <YRK> TO MAKE ACQUISITIONS.
    YORK, Pa., March 30 - York International Corp said it has
agreed to acquire Frick Co and Frigid Coil/Frick Inc for
undisclosed terms.
    The company said Frick makes refrigeration equipment and
compressors and Frigid Coil also makes refrigeration equipment.
 Together the two had revenues of about 50 mln dlrs in 1986.
    The company said it hopes to complete the acquisition in
May, subject to its review of Frick and Frigid and regulatory
approvals.


.I 17049
.C
acq
.W
NUCLEAR SUPPORT <NSSI> TO BUY ITT <ITT> HENZE.
    CAMPBELLTOWN, Pa., March 30 - Nuclear Support Services Inc
said it agreed in principle to buy the business and assets of
ITT Henze Service from ITT Corp for an undisclosed amount.
    Henze, which is engaged in performing nuclear plant repair
work, had revenues of 12.7 mln dlrs for the year ended December
31, 1986.
    For 1986, Nuclear Support, a supplier of support personnel
and services to the nuclear power industry, had net income of
2.4 mln dlrs on sales of 30.6 mln dlrs.


.I 17050
.C
acq
.W
COLONIAL BANCGROUP <CLBGA> BUYS FARMERS.
    MONTGOMERY, Ala., March 30 - Colonial BancGroup said it
acquired Farmers and Merchants Bank, a Baldwin County bank with
assets of 103 mln dlrs, through an exchange of stock valued at
about 12 mln dlrs.
    Colonial said it also signed letters of intent to acquire
First Federal Bank in Opelika, Athens-Limestone Bank in Athens,
Jackson County Bank in Scottsboro and Commercial National Bank
in Demopolis, with aggregate assets totaling 130 mln dlrs.


.I 17053
.C
acq
.W
ROCHESTER TELEPHONE <RTC> COMPLETES ACQUISITION.
    ROCHESTER, N.Y., March 30 - Rochester Telephone Corp said
it completed its acquisition of the Enterprise Telephone Co,
based in New Holland, Pa., in exchange for stock valued at 26.3
mln dlrs.
    Enterprises serves about 16,000 access lines in Lancaster
County. Enterprise becomes the third operating telephone
subsidiary of Rochester Telephone in Pennsylvania and its sixth
largest overall, the company said.


.I 17055
.C
acq;gold;
.W
CITY RESOURCES TO SELL GOLD PROPERTY STAKE.
    VANCOUVER, March 30 - City Resources Ltd said it has agreed
in principle to sell a 50 pct interest in a group of mineral
properties in the southwest Pacific to a buyer it did not name
for 30 mln Canadian dlrs.
    The company said a preliminary estimate of the geological
resources of one of the properties to a depth of 200 meters
indicates a potential of 1.2 mln ounces of gold, and by the
middle of 1987 it expects to establish proven ore reserves
containing at least 500,000 ounces of gold. Mining could start
in 1988, subject to a satisfactory feasibility study.
    The company said completion of the transaction is subject
to regulatory and shareholder approvals.
    City Resources is controlled by City Resources Ltd of
Australia.


.I 17059
.C
acq
.W
HOME SHOPPING <HSN> TO PURCHASE TV STATION.
    CLEARWATER, Fla, March 30 - Home Shopping NEtwork Inc said
its Silver King Broadcasting Co INc unit entered a definitive
contract to buy the broadcasting assets of TV station KWVT,
Channel 22 in the Portland/Salem, Ore. area for undisclosed
terms.
    Additionally, the company said KWVT, which serves 785,000
homes, began broadcasting Home Shopping Network full time this
morning under an affiliation agreement.
    Home Shopping also said it entered a definitive contract to
buy TV Station KPST, Channel 66 in San Francisco and KLTJ,
Channel 49 in Dallas.


.I 17060
.C
earn
.W
COVINGTON TECHNOLOGIES INC <COVT> YEAR NET.
    FULLERTON, Calif., March 30 -
    Oper shr profit eight cts vs loss 20 cts
    Oper net profit 1,115,000 vs loss 2,729,000
    Revs 83.0 mln vs 37.9 mln
    Note: Current year figures exclude operating loss
carryforward gain of 888,000 dlrs and loss from discontinued
operations of 73,000 dlrs.
    Prior year figures exclude loss from discontinued
operations of 3.9 mln dlrs.


.I 17061
.C
money-fx;stg;
.W
PARIS MEET AGREED NOT TO PUBLISH BANDS - LAWSON.
    LONDON, March 30 - U.K. Chancellor of the Exchequer Nigel
Lawson said the meeting of six major industrial nations in
Paris last month agreed not to publish any bands in connection
with their pact to stabilise currencies.
    Questioned by a parliamentary select committee about why
the participating countries had not announced any bands, Lawson
replied, "we all agreed it would be much more sensible not to."
When asked whether that meant an informal joint currency float
with set ranges was arranged in Paris, Lawson said "I do not
want to reveal the precise nature of the agreement, so as not
to make it easy for" speculation against the accord.
    Lawson said the Paris accord presumed that individual
countries would take corrective action if their currency began
reacting significantly to domestic macroeconomic factors.
    But if such movements were due to extraneous factors,
Lawson said the other pact countries would come to its aid
through concerted intervention on the foreign exchanges.
    "It is clear that both Germany and Japan are having
difficulty adjusting to their very large exchange rate
appreciations and making their economies more domestically
oriented, just as it is taking time for the United States to
make its own economy more export oriented," Lawson said.
    In his oral evidence to Parliament's Select Treasury
Committee, Lawson repeated that he was happy with the pound's
current level, adding that "It is an objective ... To try to
keep it around that level."
    He said the perception of sterling on foreign exchanges had
changed since the steep drop in oil prices, largely because the
pound had weathered that period so successfully. "There has been
a reassessment of sterling's fundamentals," Lawson said.  He
disagreed with what he termed "the grossly exaggerated claim"
that real U.K. Interest rates were much higher than those of
other major industrialsed countries.
    Using as a reference the key three-month sterling interbank
rate as quoted in London, Lawson said Britain now had a real
interest rate level of 5.75 pct - the same as Japan did and
only a 0.75 percentaage point above the Group of Five average.
    Lawson confirmed that "over the medium and longer term, the
government's objective is zero inflation."
    He said the government's intention of its PSBR constant at
1.0 pct of GDP "is the modern equivalent of the balanced budget
doctrine."  He added that "to allow the debt/GDP ratio to remain
constant on anything other than zero inflation basis is simply
a recipe for accelerating inflation."


.I 17067
.C
acq
.W
******BASS GROUP SAYS IT HAS HAD TALKS ON SEEKING CONTROL OF TAFT BROADCASTING.
Blah blah blah.

.I 17068
.C
crude
.W
LOWER REFINERY OPERATIONS SEEN PRODUCING PROFITS.
    By BERNICE NAPACH, Reuters
    SAN ANTONIO, TEXAS, March 30 - U.S. refiners will have to
reduce operations if they want to be profitable this year, said
industry officials attending the National Petroleum Refiners
Association meeting here.
     "If the refining sector can discipline itself to refine
about 12 mln barrels of crude oil a day, we have a chance to
pull down inventories to acceptable levels by the second
quarter, said Archie Dunham, executive vice president of
petroluem products at Conoco Inc
    "If not, the industry will have a tough 1987," he added.
     Last week's American Petroleum Institute report said that
U.S. refining capacity rose three pct to 78.7 pct of capacity,
with crude oil runs at 12.2 mln barrels per day for the week
ended March 20.
     The API said that with the higher crude oil runs, 
distillate and gasoline inventories were sharply above year-ago
levels. Gasoline stocks were at 245.6 mln barrels, some 17.2
mln barrels above year-ago levels. Distillate stocks, at 108.7
mln barrels, are 10.9 mln barrels above last year's level, the
API said.
     Henry Rosenberg, chairman of Crown Central Petroleum Corp
<CNP> told Reuters that unless refining and marketing return to
profitability, oil companies will have to rely on downstream
operations to produce an acceptable level of earnings.
     "The jump in refining capacity is a concern if it
continues," said Kenneth Buckler, executive vice president of
refining and marketing at <Total Petroleum Co>, a U.S.
subsidiary of Cie Francaise Des Petroles of France.
     Refineries should operate near 75 pct of capacity given
the current level of demand but the operating level should
increase as gasoline demand picks up in the next quarter,
Buckler said.
     Dunham said the potential operable capacity of U.S.
refineries should also be cut about 500,000 barrels of crude
per day. "I expect to see the shutdown of more small refineries
over the next five years," he said, adding that these
facilities refine between 10,000 and 30,000 barrels of crude
oil per day. The API said U.S. operations have the capacity to
refine 15.6 mln bpd of crude.


.I 17073
.C
oilseed;wheat;grain;soybean;
.W
******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS  SOYBEANS 17,683 WHEAT 20,717 CORN 36,581.
Blah blah blah.

.I 17076
.C
earn
.W
NEWMONT MINING <NEM> PLANS 2-FOR-1 STOCK SPLIT.
    NEW YORK, March 30 - Newmont Mining Corp's board has
proposed a two-for-one stock split subject to shareholder
approval of an increase to 120 mln from 60 mln in authorized
common shares, the proxy for the company's annual meeting said.
    If holdings voting at the May six meeting in Wilmington,
Del., approve the increase in authorized shares the split will
be paid in the form of a stock dividend on June 10 to holders
of record May 20, the proxy said.
    Newmont said it will also ask shareholders to approve
amendments to its certificate of incorporation limiting certain
liabilities of its directors.


.I 17079
.C
earn
.W
DENPAC CORP <DNPC> YEAR LOSS.
    HACKENSACK, N.J., March 30 -
    Shr loss one ct vs loss one ct
    Net loss 483,518 vs loss 220,582
    Sales 381,841 vs 400,518
    NOTE: 1985 net includes 196,868 dlr gain from forgiveness o
accrued interest due to affiliates.


.I 17080
.C
earn
.W
<AIN LEASING CORP> 3RD QTR JAN 31 LOSS.
    GREAT NECK, N.Y., March 30 -
    Shr loss six cts vs profit 22 cts
    Net loss 133,119 vs profit 496,391
    Revs 136,918 vs 737,917
    Nine mths
    Shr loss 21 cts vs profit 15 cts
    Net loss 478,991 vs profit 340,210
    Revs 324,011 vs 841,908


.I 17086
.C
crude
.W
VENEZUELA WANTS TO BOOST ITS REFINING CAPACITY.
    SAN ANTONIO, TEXAS, March 30 - Venezuela's state oil
company Petroleos de Venezuela S.A. wants to raise its
worldwide refining capacity by 150,000 barrels of per day, a
company official attending the National Petroleum Refiners
Association meeting here said.
    He declined to be identified but said PdVSA has the
capacity to refine about 650,000 bpd of crude oil from refining
centers
in Venezuela, Sweden, West Germany, Belgium, and the United
States. The company recently purchased a 50 pct stake in the
Corpus Christi, Texas refinery of Champlin Petroleum Co, a
subsidiary of Union Pacific Corp <UNP>.
    Earlier it bought a similar stake in the Lake Charles, La
refinery owned by Citgo Petroleum Corp, a unit of Southland
Corp <SLC>.
     According to the official, Venezuela is searching
worldwide for the additional refining capacity but he did not
mention where the company was looking. 
    Refineries abroad, he said, guarantee a refining outlet for
Venezuelan crude oil while ensuring stability of supply to
refiners.
    He said Venezuela currently  produces about 1.4 mln bpd of
crude oil, which is in line with its 1.495 bpd OPEC ceiling.


.I 17088
.C
earn
.W
PRIMEBANK <PMBK> SETS 10 PCT STOCK DIVIDEND.
    GRAND RAPIDS, Mich., March 30 - PrimeBank Federal Savings
Bank said its board declared a 10 pct stock dividend to be
distributed about April 15 to holders or record March 31.


.I 17089
.C
earn
.W
AMERICAN LOCKER GROUP INC <ALGI> 4TH QTR NET.
    JAMESTOWN, N.Y., March 30 -
    Shr profit 23 cts vs loss six cts
    Net profit 319,564 vs loss 84,203
    Sales 6,419,230 vs 5,583,560
    Year
    Shr profit 1.11 dlrs vs profit 43 cts
    Net profit 1,582,125 vs profit 654,083
    Sales 26.2 mln vs 22.6 mln
    NOTE: Full year 1985 includes gains of two cts per share
from discontinued operations and four cts per share from
disposal of assets.


.I 17090
.C
acq
.W
BASS GROUP SAYS IT HAS HAD TALKS ON TAFT <TFB>.
    WASHINGTON, March 30 - A group led by members of the
wealthy Bass family of Fort Worth, Texas, which holds a 24.9
pct stake in Taft Broadcasting Co, said it has had talks about
taking part in a move to take control of the company.
    In a filing with the Securities and Exchange Commission,
the group said it has had discussions with other Taft
stockholders and some company managers and directors
"concerning participation in a group to acquire control" of the
company.
    The Bass group, which did not identify any of the other
people with whom it said it has had talks, said it plans to
continue evaluating Taft and "will be involved in further
discussions relating to the future control and direction" of
the company.
    The group, which holds 2,291,210 Taft common shares, said
its members may buy more shares of Taft common stock, or may
decide to sell some or all of its stake.
    On Friday Taft said it would negotiate with a group led by
its vice chairman, Dudley Taft, and a Rhode Island investment
firm, which had offered 150 dlrs a share for the company.
    The Dudley Taft group, Theta Corp, which also includes
Narragansett Capital Corp, a Providence, R.I., investment firm,
is seeking to take the company private in a leveraged buyout
valued at 1.38 billion dlrs.
    Besides the Bass group, another major Taft shareholder,
Cincinnati, Ohio, financier Carl Lindner, has also said he has
had talks about increasing his stake in the company, taking
part in a takeover effort, or launching one himself.
    Lindner controls 1,489,298 shares of Taft common stock, or
16.2 pct of the total.


.I 17091
.C
iron-steel
.W
U.S. STEEL PRODUCTION ROSE 1.3 PCT IN WEEK.
   New York, March 30 - Steel production rose
1.3 pct to 1,696,000 short tons in the
week ended March 28 from 1,675,000 short
tons, the American Iron and Steel Institute
reported
   Production so far this year was 18,810,000 tons adjusted off
14.6 pct from 22,016,000 tons
produced by the nations mills a year ago.
    Utilization for the week of March 28 was   78.7 pct and for
the week of March 21 was      was 77.8 pct.      


.I 17092
.C
earn
.W
NORTH AMERICAN GROUP <NAMG> 4TH QTR OPER LOSS.
    CHICAGO, March 30 -
    Oper shr loss 12 cts vs loss 10 cts
    Oper net loss 474,270 vs loss 369,848
    Revs 202,500 vs 111,210
    Avg shrs 3,904,373 vs 3,495,579
    Year
    Oper shr loss 28 cts vs loss 46 cts
    Oper net loss 1,069,550 vs loss 893,612
    Revs 408,031 vs 438,933
    Avg shrs 3,785,607 vs 1,944,627
    NOTE: Full name is North American Group Ltd
    Earnings exclude losses on reorganization expenses of
33,453 dlrs, or one ct a share vs 59,520 dlrs, or two cts a sh
are in the quarter and losses of 237,859 dlrs, or six cts a
share vs 413,444 dlrs, or 21 cts a share for the year
    Earnings exclude gains on discontinued operations of
147,671, or four cts a share in the 1985 quarter and gains of
760,603 dlrs, or 20 cts a share vs 520,200 dlrs, or 27 cts a
share for the year


.I 17095
.C
earn
.W
<OXOCO INC> YEAR LOSS.
    HOUSTON, March 30 -
    Oper shr loss 6.68 dlrs vs loss 9.95 dlrs
    Oper net loss 53.9 mln vs loss 69.8 mln
    Revs 16.5 mln vs 33.2 mln
    Avg shrs 8,329,492 vs 7,271,668
    NOTE: 1986 excludes loss 12.9 mln for discontinued
compressor operations vs loss 14.9 mln year prior.
    1986 excludes gain of 98.7 mln for extinguishment of debt
from company's chapter 11 filing and subsequent reorganization.


.I 17096
.C
earn
.W
TEECO PROPERTIES L.P. OPER INCOME DOWN.
    NEW YORK, March 30 - <Teeco Properties L.P.> said the
partnership recorded income from operations for 1986 of 140,000
dlrs, or two cts a unit.
    The partnerhsip said this compared to 1985 figures of
660,000 dlrs, or 10 cts a unit.
    Results of operations between both years is not comparable
since the partnership's principle objective is to sell or
dispose of its assets and distribute proceeds to unit holders,
according to the partnership.
    It said the number of units outstanding for both years is
6,479,516.



.I 17097
.C
earn
.W
BROUGHER INSURANCE GROUP INC<BIGI> 4TH QTR LOSS.
    GREENWOOD, Ind., March 30 -
    Shr loss nine cts vs profit 20 cts
    Net loss 257,157 vs profit 414,890
    Year
    Shr profit 54 cts vs profit 1.05 dlrs
    Net profit 1,295,104 vs profit 2,140,673


.I 17100
.C
iron-steel
.W
CSC INDUSTRIES UNIT TO INCREASE PRICES.
    WARREN, Ohio, March 30 - Copperweld Steel Co <CPSL>, a
subsidiary of CSC Industries Inc., said it will increase from
market price levels its bar, semi-finished and leaded products
effective July One.
    Hot rolled and cold finished bar wil be increase 25 dlrs
per net ton, while semi-finished products will be increased 15
dlrs per net ton, the company said.
    Anticipated higher energy and raw material costs, combined
with current market trends, were cited by the company as
reasons for the increases.


.I 17101
.C
wheat;grain;
.W
USDA TO UPDATE WINTER WHEAT ACREAGE TOMORROW.
    WASHINGTON, March 30 - The U.S. Agriculture Department said
it will update its estimate of winter wheat seeded acreage in
the prospective planting report, scheduled for release at 1500
est (2100 gmt) tomorrow, March 31.
    The original estimate of seedings of winter wheat was
published in January.
    It said the new survey is possible because of the new
integrated nationwide survey program that uses probability
sampling procedures that combine information from farmers
operating in selected areas and farmers identified on special
lists.


.I 17102
.C
acq
.W
SANTA FE <SFX> AWARE OF HENLEY <HENG> STAKE.
    CHICAGO, March 30 - Santa Fe Southern Pacific Corp said it
has discussed with Henley Group that company's almost five pct
stake and was told the holdings are for investment purposes.
    "We have confirmed with the Henley Group that they own
approximately 7.9 mln shares of Santa Fe Southern Pacific
common stock. They have informed me that they like our company
and purchased the stock last year for investment purposes,"
Santa Fe chairman John Schmidt said in a statement.
    Henley late Friday filed a 10-K report with the Securities
and Exchange Commission concerning the Santa Fe stake.
    Earlier Santa Fe's stock was up 4-7/8 to 41 before slipping
to be up 1-7/8 at 38.


.I 17104
.C
sugar
.W
U.S. SUGAR IMPORTS DOWN IN LATEST WEEK - USDA.
    WASHINGTON, March 30 - Sugar imports subject to the U.S.
sugar import quota during the week ended March 6 totaled 25,192
short tons versus 29,043 tons the previous week, the
Agriculture Department said.
    Cumulative imports now total 130,804 tons, it said.
    The sugar import quota for the 1987 quota year
(January-December) has been set at 1,001,430 short tons
compared with 1,850,000 tons in the 1986 quota year, which was
extended three months to December 31.
    The department said the Customs Service reported that
weekly and cumulative imports are reported on an actual weight
basis and when final polarizations are received, cumulative
import data are adjusted accordingly.


.I 17107
.C
earn
.W
TEMPLETON ENERGY INC <TMPL> 4TH QTR NET.
    HOUSTON, March 30 -
    Shr profit four cts vs loss six cts
    Net profit 967,000 vs loss 1,219,000
    Revs 10.1 mln vs 4.5 mln
    Year
    Shr profit three cts vs loss five cts
    Net profit 688,000 vs 982,000
    Revs 24.6 mln vs 16.3 mln
    NOTE: 1986 includes results of Louisiana Energy and
Development Corp acquired in November 1986.


.I 17108
.C
earn
.W
AEL INDUSTRIES <AELNA> 4TH QTR FEB 27 NET.
    LANSDALE, Pa., March 30 -
    Shr 66 cts vs 33 cts
    Net 2,955,000 vs 1,563,000
    Revs 26.1 mln vs 23.9 mln
    12 mths
    Shr 74 cts vs 1.01 dlrs
    Net 3,321,000 vs 4,739,000
    Revs 108.4 mln vs 104.9 mln
    NOTE: year 1987 includes charge of 818,000 dlrs, or 18 cts
per share, for sale of Elisra Electronic Systems Ltd.


.I 17109
.C
acq
.W
AMOSKEAG <AMKG> TAKEOVER BLOCKED BY COURT.
    MANCHESTER, N.H., March 30 - Amoskeag Bank Shares Inc said
the New Hampshire Supreme Court overturned its proposed
acquisition of Portsmouth Savings Bank in a three-two vote.
    The acquisition had been opposed by some depositors, who
filed an action to block the takeover.
    "We will respond to this news as soon as we have had an
opportunity to analyze the decision, and any and all options
available to us," chairman William Bushnell said in a
statement.


.I 17110
.C
earn
.W
METROMAIL <MTMA> PREDICTS FLAT EARNINGS.
    LINCOLN, Neb., March 30 - Metromail Corp said it expects
flat operating profits for its 1987 fiscal year ending May 31
with last fiscal year's earnings from operations of 9,943,000
dlrs, or 1.05 dlrs a share.
    The company said the flat results will be due to higher
than normal expenditures during the fourth quarter for
expansion of its data processing capabilities.
    Earlier, Metromail reported fiscal 1987 third quarter
earnings of 2.4 mln dlrs, or 25 cts a share, versus three mln
dlrs, or 32 cts a share, the prior third quarter, and nine
months net of 7.2 mln dlrs, or 76 cts a share, versus 7.8 mln
dlrs, or 82 cts a share the prior nine months.


.I 17112
.C
acq
.W
BALL <BLL> ENDS TALKS WITH MONSANTO <MTC>.
    MUNCIE, IND., March 30 - Ball Corp said it was unable to
complete negotiations to acquire the plastic container business
of Monsanto Co.
    It said the two companies had entered into exclusive
negotiations last October.
    Neither company provided details on why the talks were
terminated.


.I 17113
.C
oilseed;rapeseed;
.W
JAPAN BUYS CANADIAN RAPESEED.
    WINNIPEG, March 30 - Japanese crushers bought 2,000 tonnes
of Canadian rapeseed in export business overnight for May
shipment, trade sources said.


.I 17117
.C
acq
.W
REEF ENERGY <RFEN> ENTERS PIPELINE AGREEMENT.
    TRAVERSE CITY, MICH., March 30 - Reef Energy Corp said its
board entered into agreements with Penteco Corp, a private
Tulsa-based company, to buy a 12-pct interest in the general
partnership of Penteco East Central Pipeline and a 10-pct
interest in Lincoln Gas and Marketing Corp.
    Penteco East is a gas gathering and transmission system in
southern Kansas and northern Oklahoma.
    It said Penteco in turn has purchased one mln shares of
Reef common and taken options for the purchase of another two
mln shares over the next 36 months.


.I 17118
.C
earn
.W
AMERON INC <AMN> QTLY DIVIDEND.
    MONTEREY PARK, Calif., March 30 -
    Shr 24 cts vs 24 cts prior qtr
    Pay May 15
    Record April 24
            


.I 17119
.C
earn
.W
JOHNSON ELECTRONICS INC <JHSN> 4TH QTR LOSS.
    WINTER PARK, Fla., March 30 -
    Shr loss three cts vs profit eight cts
    Net loss 35,000 vs profit 128,000
    Revs 1,133,000 vs 1,528,000
    Year
    Shr profit four cts vs profit 21 cts
    Net profit 72,000 vs profit 339,000
    Revs 4,837,000 vs 4,500,000
    NOTE: 1985 net income included an after tax gain of 195,000
or 12 cts per share on sale of real property.


.I 17120
.C
money-fx
.W
TREASURY BALANCES AT FED FELL ON MARCH 27.
    WASHINGTON, March 30 - Treasury balances at the Federal
Reserve fell on March 27 to 2.424 billion dlrs from 2.508
billion dlrs on the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 9.706
billion dlrs from 10.786 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 12.131
billion dlrs on March 27 compared with 13.283 billion dlrs on
March 26.


.I 17121
.C
earn
.W
MORRISON INC <MORR> 3RD QTR FEB 28 NET.
    MOBILE, Ala., March 30 -
    Shr 35 cts vs 29 cts
    Qtly div 12 cts vs 12 cts prior qtr
    Net 5,036,000 vs 4,165,000
    Revs 147.6 mln vs 132.4 mln
    Nine mths
    Shr 1.12 dlrs vs one dlr
    Net 16.1 mln vs 14.4 mln
    Revs 433.4 mln vs 385 mln
    NOTE: Per share data reflect March 1986 five pct stock
distribution. Cash dividend is payable April 30 to holders of
record April 15.


.I 17124
.C
acq
.W
VANDERBILT <VAGO> TO RAISE COMMON, MERGE.
    LAS VEGAS, March 30 - Vanderbilt Gold Corp said
shareholders at a special meeting approved its reincorporation
in Delaware, an increase in authorized common to 25 mln shares
from 12 mln shares, and a non-qualified stock option plan.
    It also said shareholders approved the merger of Morning
Star Mine interests held by six corporations in exchange for
issuing 2,098,602 shares of its common. It said the acquisition
brings its ownership in Morning to over 94 pct and it intends
to acquire the remaining interests before mid year.
    It said its plans call for 1987 production of 30,000 ounces
of gold with product costs per ounce at about 200 dlrs.


.I 17125
.C
cotton
.W
LITTLE RISK SEEN FOR TEXAS COTTON FROM COLD.
    New York, March 30 - Texas' cotton crop stands little
chance of damage from frigid temperatures expected tonight in
that state, as very little cotton has been planted, according
to Texas agricultural sources and cotton market analysts.
    "It's still pretty early for cotton planting. Only six pct
of the crop was planted as of last week," said Doug Stillmann,
a statistician at the Texas Agricultural Statistic Service in
Austin, a division of the U.S. Agriculture Department.
    Stillmann and other cotton market sources said planting had
begun in the Rio Grande Valley and South Texas areas only, with
planting in the crucial high and low plains areas not slated to
begin until next month. The high and low plains accounted for
60 pct of the 2.5 mln bales produced in Texas last year,
Stillmann said.
    Temperatures tonight in most of Texas are expected to drop
to freezing to the low 20s, although the lower Rio Grande
Valley may see more moderate readings in the middle 30s,
according to meteorologists at Accu-Weather Inc.
    The price of new-crop cotton on the New York cotton futures
market rallied today on weather-related fears.


.I 17126
.C
grain
.W
REPORT ON EXPORT MARKETS FOR U.S. GRAIN DELAYED.
    WASHINGTON, March 30 - The U.S. Agriculture Department's
report on Export Markets for U.S. Grain, scheudled for release
today, has been delayed until Wednesday, April 1, a department
spokeswoman said.
    No reason was given for the delay in releasing the monthly
report.


.I 17127
.C
acq
.W
******BILZERIAN TELLS SEC HE UPS PAY 'N PAK STAKE TO 9.9 PCT.
Blah blah blah.

.I 17131
.C
fuel
.W
ROYAL DUTCH <RD> UNIT RAISES HEAVY FUEL PRICES.
    NEW YORK, March 30 - Scallop Petroleum Corp, a subsidiary
of Royal Dutch/Shell group, said today it raised contract
prices for heavy fuel 25 cts to 1.75 dlrs a barrel, effective
today.
    The increase brings the price for 0.3 pct sulphur to 22.50
dlrs, up 1.75, 0.5 pct sulphur to 21.50 dlrs, up 1.50, 0.7 pct
sulphur to 20.25 dlrs, up 75 cts, one pct sulphur to 19.50
dlrs, up 25 cts, two pct sulphur to 18.75 dlrs, up 75 cts, 2.2
pct sulphur to 18.50 dlrs, up 75 cts, 2.8 pct sulphur to 18.00
dlrs, up 75 cts.


.I 17132
.C
orange
.W
FLORIDA WEEKLY CROP REPORT.
    ORLANDO, FLA, March 30 - Florida's citrus groves continue
in very good condition, acccording to the latest report by the
U.S. Department of Agriculture's Florida Agricultural
Statistics Service. Late-week rains and thunderstorms came at
an opportune time. Warm daytime temperatures and good soil
moisture have produced an abundance of new growth and bloom.
    Most trees are in some stage of bloom development with
petal drop already taking place in many south Florida groves.
    Harvest of late-type valencia oranges is increasing rapidly
with the near completion of the early and midseason varieties.
Rain during the week caused some delay in picking.
    For the week ended March 29, there were an estimated 77,000
boxes of early and midseason and 945,000 boxes of late season
oranges harvested, the USDA said.


.I 17135
.C
acq
.W
BASS GROUP EMERGES AS POSSIBLE TAFT<TFB> BIDDERS.
    By Patti Domm, Reuters
    New York, March 30 - The Bass Group, once thought by
analysts to be eager to sell its holdings in Taft Broadcasting
Co, emerged as another potential bidder for the Ohio
broadcasting company.
    The Bass Group, which holds 24.9 pct of Taft, said it had
talked with other taft stockholders and some company managers
and directors "concerning participation in a group to acquire
control" of the company.
    The Bass group said it had talks with other Taft
stockholders and members of Taft management about participating
in a group to acquire control. The group, which is led by the
wealthy bass brothers of Fort Worth, Texas, did not identify
any of the other people with whom it had talks.
    Taft said Friday it would negotiate with its vice Chairman
Dudley Taft on his group's 150 dlr per share or 1.38 billion
dlr offer for the company.
    At the time, the company said it authorized its adviser,
Goldman, Sachs and Co, to explore other takeover proposals and
to supply financial data to other interested bidders.
    "If indeed, the reason Dudley Taft is no longer president
is because the bass group tossed him out, I couldn't see them
backing him on any deal," said one analyst, who asked not to be
identified.
    "I think they wanted a way out. Now, this sounds like
they're going to join the group and buy themselves out," said
Edward Atorino, media analyst with Smith Barney, Harris Upham
and Co.
    Analysts have speculated that Carl Lindner may be
interested in acquiring the company. they speculated he may be
one of the shareholders in talks with the bass group.
    Lindner, chairman of American Financial Corp, holds 16.2
pct of Taft. He was not immediately available for comment.
    Analysts have said they are baffled by the strength of
Taft's stock price compared to what they see as breakup values
for the company.
    Several analysts had estimated a break up value of less
than 150. One analyst said he believes it has a breakup value
of 160 to 165 dlrs per share.
    Taft stock closed at 156-1/2, up 1-3/4.
    "They (investors) are saying here's another one - another
family dispute," said Dennis McAlpine of Oppenheimer.


.I 17137
.C
trade
.W
U.S. TRADE OFFICIAL SAYS JAPAN ACTION FOOLISH.
    By Jacqueline Frank, Reuters
    WASHINGTON, March 30 - A high level U.S. trade official
said it would be foolish for Japan to strike back against the
United States for its sanctions on Japanese semiconductor
electronics products.
    Asked by reporters if Japan was expected to retaliate
against U.S. exports, Deputy Under Secretary of Commerce Bruce
Smart replied, "That would be the height of foolishness."
    In addition, he doubted Japan could show enough progress in
meeting the conditions of the agreement to avoid the actual
imposition of the 300 mln dlrs in tariffs on April 17.
    Japan's 58.6 billion dlr trade surplus with the United
States last year has come under fire in Congress concerned
about the loss of jobs to foreign competition and with the
record 169 billion dlrs U.S. trade deficit in 1986.
    President Reagan's sanctions decision won praise today from
the two Democratic leaders of Congress.
    "I think it's about time," Senate Democratic Leader Robert
Byrd of West Virginia told reporters. House Speaker Jim Wright
of Texas told reporters before the opening of the House
session, "It just shows we were right all along when we said
something needs doing."
    Smart testified before a Senate Labor Committee hearing
that last Friday's U.S. trade action would help U.S.
negotiations on access to Japan for U.S. auto parts.
    Since last August Smart has been leading talks to open up
Japan to purchases of more U.S.-made automotive parts. Last
year, Japan racked up a 3.6 billion dlr trade surplus with the
United States in these products.
    Both countries expect to conclude the talks by August 1987.
    "It's amazing to me that the Japanese were surprised. I
hope it will persuade them we're serious," Smart said of the
White House trade sanctions.
    The United States has tried to convince Japanese car
companies of the quality of American-made parts and to draw
them away from their traditional Japanese suppliers.
    "All we ask is a chance. We have a job to do persuading them
we can do better than our reputation seems to be," he said.
    Measured per car, each American-made car contained about
700 dlrs in Japanese auto parts while each Japanese-made car
contained about 26 dlrs in U.S. auto parts, Smart said.


.I 17139
.C
acq
.W
BILZERIAN UPS PAY 'N PAK <PNP> STAKE TO 9.9 PCT.
    WASHINGTON, March 30 - Investor Paul Bilzerian, who has
said he may seek control of Pay 'n Pak Stores Inc, said he
raised his stake in the company to one mln shares, or 9.9 pct
of the total, from 721,900 shares, or 7.2 pct.
    In a filing with the Securities and Exchange Commission,
Bilzerian and Bicoastal Financial Corp, a Tampa, Fla.,
investment firm he controls, said they bought 278,000 shares of
Pay 'n Pak common stock on March 26 and 27 at prices ranging
from 13.29 to 17.04 dlrs a share.
    Bilzerian last week said he was considering raising his
stake in the company, seeking a board seat or control.


.I 17144
.C
interest;gnp;
.W
FED'S POLICY EASE MAY END WITH 2ND QTR RATE CUT.
    By Martin Cherrin, Reuters
    NEW YORK, March 30 - The Federal Reserve's move to easier
monetary policy, begun with four quick half-point discount rate
cuts in 1986, will likely end with a final rate drop in the
second quarter, analysts said.
    A poll of 10 economists shows most expect interest rates to
edge lower, with the Fed likely to drop its basic lending rate
from 5-1/2 pct late next quarter to help the economy.
    "The Fed is not likely to ease policy much further without
a full-blown recession," said Raymond Stone, chief financial
economist at Merrill Lynch Capital Markets.
    Stone said economic data available by late June may be just
weak enough to prompt one more discount rate cut. But he said
it may only be a quarter-point drop instead of the usual half
point, to avoid hurting the dollar further.
    All of the economists agreed that the Federal Open Market
Committee tomorrow will leave Fed policy unchanged.
    The average forecast of those surveyed projects roughly
quarter-point drops by the end of June in both the Treasury
bond yield, to 7-1/2 pct, and the Federal funds rate at which
banks lend to one another, to 5-7/8 pct. Most expect the prime
lending rate at major banks to remain at 7-1/2 pct.
    Other broad predictions of the survey, relating mainly to
the April-June quarter, follow:
    - The dollar is likely to decline five to 10 pct further
against other major currencies because of a large U.S. budget
deficit and a wide, but narrowing, trade gap. Contacted after
the dollar's steep drop in the last two business days, the
economists reaffirmed this view but stressed the risk is that
the dollar will fall more, rather than less, than they expect.
    - Oil prices in the second quarter are likely to continue
trading roughly between 16 and 19 dlrs a barrel and could well
test the lower end of that range.
    - Stocks will continue to outperform bonds next quarter and
probably for all of 1987. Stocks should gain on strong
foreign demand and a modest second-half economic rise. The
outlook for bonds also is less favorable later in the year
since both inflation and interest rates may be edging up.
    - Inflation as measured by the GNP implicit price deflator
will rise to around 3.3 pct this year from 2.7 pct in 1986. The
sharp fall in the dollar to date will add to inflation, as will
a mild economic pickup in the second half of this year.
    - U.S. real gross national product, which grew at a two pct
annual rate in the 1986 second half, should expand at
respective rates of about 2.3 pct and 2.5 pct in the 1987 first
and second halves. First-quarter growth is put at a 2.4 pct
annual
rate, slowing to 2.1 pct next quarter.
    Robert Brusca of Nikko Securities Co International sees
both the strongest economy and the highest interest rates among
those surveyed. He expects real GNP, which grew at a 1.1 pct
rate in fourth-quarter 1986, to expand at a 3.3 pct rate this
quarter and 3.5 pct next quarter.
    "The economy will bounce back more strongly than many
expect," Brusca said. He said an involuntary buildup in
inventories, largely in autos, will add to first-quarter
economic growth, with consumer spending helping later.
    "We're running out of special factors to keep the economy
afloat," said Philip Braverman of Irving Securities Corp. His
interest rate and economic forecasts were among the lowest.
    Braverman said tax law changes and inventory accumulation
helped lift fourth and first quarter GNP growth, respectively.
He expects 2.5 pct first quarter growth but said that second
quarter growth could be zero or negative.
    Braverman said economic activity next quarter will suffer
from a paring of inventories, lower capital investment, slow 
government spending and less construction. Only a marginally
narrower trade deficit will add to growth.
    He sees a 7.10 pct end-of-June yield on Treasury bonds,
with Federal funds and prime rates at 5.50 and seven pct,
respectively. Nikko's Brusca projects rates of 8.25 pct for
bonds, 6.15 pct for funds and 7.75 pct for the prime rate.
    Two of the 10 economists revised rate forecasts up mildly
after the dollar's fall to 40-year lows versus the yen in past
days and news of pending U.S. trade sanctions against Japan.
    David Resler of Nomura Securities Co International Inc
raised his end-June bond yield forecast to 7.50 pct from 7.20
pct and a Fed funds rate estimate to six pct from 5.80 pct.
    Raul Nicho, president of Money Market Services Inc, lifted
his forecast of bond and Fed funds rates an eighth of a point
to eight pct for bonds and 6-1/4 pct for funds. Both Nicho and
Resler left their end-June prime rate forecast at 7-1/2 pct.
    The higher rate forecasts reflected a belief that Japanese
investors will be less eager to buy U.S. bonds because of fear
about further dollar erosion and perhaps in response to U.S.
trade sanctions. Yields may have to rise to lure other buyers.
......END-JUNE U.S. INTEREST RATE FORECASTS....
....................T-bonds..Fed funds..Prime..
Nikko Securities.....8.25......6.15......7.75..
Money Mkt Services...8.00......6.25......7.50..
Discount Corp........7.75......6.25......7.50..
Merrill Lynch........7.30......5.75......7.50..
Bankers Trust........7.25......5.50......7.50..
Wells Fargo Bank.....7.30......5.60......7.00..
Irving Securities....7.10......5.50......7.00..
Dean Witter..........7.00......5.50......7.00..
.FORECAST AVERAGE....7.50......5.875.....7.50..
.I 17146
.C
wheat;grain;
.W
LOUISIANA WEEKLY CROP REPORT.
    Alexandria, March 30 - The Louisiana weekly USDA state crop
report said there were 2.4 days suitable for fieldwork.
    Soil moisture supplies rated 41 pct adequate and 59 pct
surplus.
    Winter Wheat - fair to good condition. eight pct headed vs
27 pct a year ago and 17 pct average.
    Corn - eight pct planted vs 64 pct a year ago and 51 pct
average. two pct emerged vs 45 y/a and 23 avg.
    Spring Plowing - seventeen pct completed vs 66 pct a year
ago and 48 pct avg.


.I 17147
.C
acq
.W
SERVICE RESOURCES <SRC> UNIT SETS PURCHASE.
    NEW YORK, March 30 - Service Resources Corp's Chas. P.
Young Co subsidiary said it agreed to acquire Atwell Fleming
Printing Ltd, a Canadian financial printer, for about 3.2 mln
dlrs.
    Young said the acquisition, which is expected to close in
April, is subject to due dilligence review.


.I 17148
.C
earn
.W
LLE ROYALTY <LRT> SETS MONTHLY PAYOUT.
    HOUSTON, March 30 - LL and E Royalty Trust said its monthly
dividend, for January, to unitholders will be 8.37 cts per unit
payable April 15 to holders of record April six.
    As previously reported, pending a ruling from the Internal
Revenues Service, the trust's distribution may be reduced by
1.09 dlr per unit, plus interest, spread out over the life of
the productive properties in which the trust has an interest.
    LLE said the working interest owner, to which the IRS sent
a notice about a deficiency in the owner's 1983 tax return, is
evaluating the necessity of escrowing some funds, which would
significantly reduce royalties paid to the trust.


.I 17149
.C
acq
.W
GENOVA <GNVA> TO MERGE INTO GENOVA PRODUCTS.
    DAVISON, Mich., March 30 - Genova Inc said its shareholders
approved a merger into <Genova Products Inc>, which will be
consumated within a few days. Under the agreement, Genova said
each of its shareholders will receive 5.375 dlrs per share in
cash.


.I 17151
.C
earn
.W
IMPERIAL BANCORP <IBAN> SETS FIVE PCT DIVIDEND.
    LOS ANGELES, March 30 - Imperial Bancorp said it declared a
five pct stock dividend, payable May 29 to shareholders of
record April 17.


.I 17152
.C
wheat;grain;cotton;sorghum;
.W
TEXAS WEEKLY CROP REPORT.
    AUSTIN, March 30 - The Texas weekly USDA state crop report
said stormy winter weather limited fieldwork before conditions
improved later in the week.
    A snowstorm caused some cattle deaths in the Panhandle, and
cold, wet weather covered many areas. Windy weather followed to
dry fields and limit planting delays.
    Small grains made good progress despite cool temperatures
which slowed growth. Additional moisture was needed in some
areas. Many fields were booting and some were beginning to
head. Wheat was rated 16 pct fair, 56 pct good and 28 pct
excellent.
    Corn and sorghum planting progressed, and land preparation
was ahead of schedule in the Plains despite snowy weather.
Cotton planting progressed in the Lower Valley.


.I 17154
.C
nat-gas
.W
ARKLA <ALG> PROPOSAL TO SETTLE DISPUTE.
    LITTLE ROCK, Ark., March 30 - Arkla Inc said it and
International Paper Co <IP> filed a proposal with the Arkansas
Public Service Commission designed to resolve the dispute
between the two over IP's plan to build natural gas pipelines
for its paper mill facilities at Pine Bluff and Camden.
    Arkla's pipeline division, Arkla Energy Resources,
currently delivers all of the natural gas consumed at the two
mills.
    Under the proposal, Arkla will support IP's plan to build
the alternate pipelines, while IP will allow Arkla's pipeline
division to deliver an equal quantity of competitively priced
supplies to other IP facilities.


.I 17156
.C
acq
.W
SERVICE RESOURCES <SRC> UNIT IN ACQUISITION.
    NEW YORK, March 30 - Chas. P. Young Co, a subsidiary of
Service Resources Corp, said it signed a definitive agreement
to acquire Atwell Fleming Printing Ltd, of Canada, for about
3.2 mln dlrs.
    The transaction is expected to close in April.
    ON February 23, Chas. P. Young said it had aquired 19.05
pct of the shares of Sorg INc <SRG> to facilitate a newgotiated
business combination.


.I 17159
.C
earn
.W
AEC INC <AECE> SETS REGULAR PAYOUT.
    ELK GROVE VILLAGE, Ill., March 30 -
    Qtrly div eight cts vs eight cts prior
    Pay April 30
    Record April 8


.I 17161
.C
crude
.W
SHELL CANADA SCHEDULES ANNUAL REFINERY SHUTDOWN.
    CALGARY, Alberta, March 30 - Shell Canada Ltd, 72 pct owned
by Royal Dutch/Shell Group <RD> <ST>, scheduled its annual
maintenance refinery shutdowns during the next two months,
company spokeswoman Judy Wish said.
    Wish said refineries will stockpile production before the
shutdowns to maintain normal supply while maintenance is
carried out.
    Production at Shell's major refinery at Strathcona Alberta,
will be closed for about one month, Wish said.
    There will be no layoffs associated with the refinery
maintenance, she added.


.I 17162
.C
acq
.W
DIXONS GROUP, AUDIO/VIDEO <AVA> END LITIGATION.
    NEW YORK, March 30 - Dixons Group PLC said that pursuant to
an agreement with Audio/Video Affiliates Inc, part of an
investor group that made a rival bid for Cyclops Corp <CYL>,
all litigation between them has been dismissed.
    As part of the agreement, Dixons said Cyacq Corp, the
Audio/Video investor group that includes Citicorp Capital
Investors Ltd, agreed to "promptly" terminate its existing
tender offer for all outstanding Cyclops common at 92.50 dlrs
per share.
    Dixons said it agreed to pay an additional 4.75 dlrs per
share, or 95 dlrs per share, to each shareholder whose shares
were purchased under its offer for Cyclops at 90.25 dlrs per
share.
    On Friday, Dixons announced that it had increased its
holdings in Cyclops Corp to about 83 pct of the currently
outstanding shares and that it intended to increase to 95 dlrs
from 90.25 dlrs the amount per share paid in the merger of a
Dixons subsidiary with Cyclops.


.I 17163
.C
acq
.W
U.S. DOT APPROVES AMERICAN <AMR>-ACI <ACF> PACT.
    WASHINGTON, March 30 - The U.S. Department of
Transportation (DOT) said it gave final clearance to the
proposed 225 mln dlr acquisition of AirCal Inc by American
Airlines Inc.
    "The acquisition is not likely to substantially lessen
competition or to be inconsistent with the public interest," the
DOT said in a statement.
    AirCal is a unit of ACI Holdings Inc while American is a
unit of AMR Corp.
    The DOT had given tentative approval to the merger plan
Feb. 20.
    American is the third largest U.S. airline in terms of
revenue passenger miles while AirCal--a relatively small
carrier that primarily serves West Coast cities--is the
nation's 17th largest passenger carrier. Their merger would not
alter American's third-place ranking, according to data
compiled by Aviation Daily, a leading industry trade magazine.
    The combination would incrase American's share of the U.S.
market to 15.4 pct from its current 14.7 pct, the DOT said.
    The DOT said the merger was unlikely to substantially
reduce competition on the four routes on which both carriers
provide either nonstop or single-plane service.
    At 13 of the 14 terminals served by both carriers, the DOT
said it found no evidence that other carriers could not
increase or begin service that competed with a merged
American-AirCal.
    Concerning the 14th, "While entry may not be possible at the
Orange County Airport in the near future, DOT found that the
service provided at other airports in the Los Angeles area,
especially at the Los Angeles International Airport, will
provide effective competition for Orange County travelers in
long-haul markets," the DOT said.
    The merger would give American control of 37 pct of the
authorized takeoff and landing slots at the Orange County
terminal, where environmental concerns and a small terminal
building limit future opportunities for expansion.
    The DOT said the Air Line Pilots Association filed comments
opposing the merger but "raised no new facts or arguments."
    Under the merger terms, announced Nov. 17, American will
pay 15 dlrs a share for the outstanding stock of ACI Holdings.


.I 17164
.C
money-fx
.W
U.S. CREDIT MARKETS END UNDER EXTREME PRESSURE.
    NEW YORK, March 30 - The U.S. credit market ended under
extreme pressure as the dollar's continued slide on the
currency markets triggered an avalanche of U.S. securities
sales, pushing prices to 1987 lows, dealers and analysts said.
    "This was a bloodbath," said one money market economist.
"We've been trading in a state of total panic at times today,"
said another.
    Mirroring the dollar's fall to a 40-year low against the
yen, the key 7-1/2 pct 30-year Treasury bond price fell nearly
two points to close at 96-7/32, compared with 98-5/32 on
Friday. The corresponding yield jumped to 7.83 pct from 7.66.


.I 17165
.C
iron-steel
.W
STEEL TECHNOLOGIES <STTX>, MITSUI SET VENTURE.
    LOUISVILLE, March 30 - Steel Technologies Inc said it
agreed to form a 50-50 joint venture with <Mitsui and Co Ltd>
to make steel products.
    The venture, called Mi-Tech Steel Inc, will be set up to
serve Japanese and domestic automobile and appliance parts
makers in the U.S.
    A plant will be located near Murfreesboro, Tenn., and
production is expected to begin in the fall 1987, the company
said.



.I 17166
.C
earn
.W
INLAND VACUUM <IVAC> SETS STOCK SPLIT.
    UPPER SADDLE RIVER, March 30 - Inland Vacuum Inc said is
board proposed a two-for-one stock split payable to
shareholders of record April 30.
    The board also elected Phillip Frost chairman, succeeding
John Durkin, who remains president and chief executive officer.
Frost in early February bought 49 pct of the company, Durkin
said.
    Stockholders at the annual meeting approved a measure to
change the company's name to IVACO Industries Inc. Five new
directors were also elected to the company's board. Durkin was
re-elected to the board, the company said.


.I 17167
.C
earn
.W
JOHNSON PRODUCTS INC <JPC> 2ND QTR FEB 28 LOSS.
    CHICAGO, March 30 -
    Shr loss three cts vs loss 39 cts
    Net loss 115,000 vs loss 1,544,000
    Rev 6.9 mln vs 7.3 mln
    Six months
    Shr profit four cts vs loss 44 cts
    Net profit 141,000 vs loss 1,772,000
    Rev 13.9 mln vs 14.5 mln
    NOTE: Net includes loss from discontinued operations of
78,000 dlrs, or two cts a share, versus 597,000, or 15 cts a
share in the prior 2nd qtr.
    Six months net includes gain from discontinued operations
of 104,000 dlrs, or three cts a share, versus a loss of 588,000
dlrs, or 15 cts a share, in the prior six months.


.I 17168
.C
iron-steel
.W
STEEL TECHNOLOGIES <STTX> IN JOINT VENTURE.
    LOUISVILLE, Ky., March 30 - Steel Technologies Inc said it
signed an agreement with Mitsui and Co Ltd <MITSY> and its
subsidiaries to establish a joint venture corporation to be
called Mi-Tech Steel Inc.
    Mitsui, through its subsidiaries, Mitsui and Co USA Inc and
Mitsui Steel Development Co Inc, and Steel Technologies each
will own 50 pct of the new company, the company said.
    Mi-tech Steel will construct, own and operate steel service
centers. The facilities will be established to serve Japanese
and domestic automobile and appliance parts manufactures in the
U.S., the company said.
    The initial processing center will be located near
Murfreesboro, Tenn., and is expected to begin operations in the
fall of 1987, Steel Technologies said.
    Daryl Elser, president of Steel Technologies, will be
president of the new company, it said.


.I 17170
.C
earn
.W
MAYNARD OIL CO <MOIL> YEAR LOSS.
    DALLAS, March 30 -
    Oper shr loss 44 cts vs profit 58 cts
    Oper net loss 2.7 mln vs profit four mln
    Revs 13.3 mln vs 28.4 mln
    Avg shrs 6.1 mln vs seven mln
    NOTE: Prior year excludes extraordinary gain of 21 cts per
share.


.I 17172
.C
earn
.W
KANSAS GAS AND ELECTRIC CO <KGE> FEBRUARY NET.
    WICHITA, Kan., March 30 -
    Shr 13 cts vs 5 cts
    Net 5,568,319 vs 2,968,437
    Rev 36.5 mln vs 34.0 mln
    12 months
    Shr 1.60 dlrs vs 1.79 dlrs
    Net 72,865,101 vs 85,198,853
    Rev 521.3 mln vs 420.3 mln
    NOTE: Twelve months includes the cumulative effect of a
change in accounting methods for accruing unbilled revenues of
11.4 mln dlrs, or 28 cts per share.


.I 17173
.C
earn
.W
<JOURNEY'S END MOTEL CORP> SIX MTHS JAN 31 NET.
    Toronto, March 30 -
    Shr 13 cts vs 14 cts
    Net 1,329,000 vs 1,054,000
    Revs 20.7 mln vs 11.4 mln
    Avg shrs 10,100,000 vs 7,500,000


.I 17174
.C
acq
.W
NEOAX <NOAX> BUYS REXNORD <REX> UNIT.
    LAWRENCEVILLE, N.J., March 30 - Neoax Inc said it bought
Rexnord Inc's Fairfield Manufacturing Co for 70.5 mln dlrs
cash.
    The unit makes custom gears for industrial use and had
sales of 84 mln dlrs in its Oct. 31, 1986 fiscal year.


.I 17176
.C
earn
.W
<R.L. CRAIN INC> 4TH QTR NET.
    OTTAWA, March 30 -
    Shr 80 cts vs 79 cts
    Net 4,212,000 vs 4,142,000
    Sales 111.1 mln vs 107.1 mln


.I 17179
.C
crude
.W
EXXON (XON) SEES SYNFUELS ROLE BY YEAR 2000.
    HOUSTON, March 30 - Development of costly shale oil,
liquified coal and other kinds of synthetic fuels, halted in
recent years because of cheap and abundant petroleum supplies,
will become economic again when world oil prices top 30 dlrs a
barrel, an Exxon Co USA executive said.
    Joe McMillan, a senior vice president, told Reuters after
addressing a Houston meeting of the American Institute of
Chemical Engineers, "By early in the next century, synthetics
should play a significant role in this country's energy
supply."
    McMillan also told reporters at a news conference that he
believed synthetic fuels would become economic to develop when
world oil prices reached a 30 to 40 dlr a barrel price range.
    "You're talking about a 50 pct increase in crude oil
prices, but I think that time is coming and we've got to be
prepared," McMillan said.
    He predicted U.S. oil demand would rise by about one pct
annually in the next few years while the nation fails to
replace its oil reserves through exploration. By the turn of
the century, world oil prices will be significantly higher
because of declining supplies, McMillan said.
    Ashland Oil, Inc. chairman John Hall, who also spoke at the
meeting, advocated some form of federal tax incentives to help
spur development of synthetic fuels.
    The United States, Hall said, has nearly 500 billion tons
of demonstrated coal reserves, an amount more than triple that
of all the world's known oil reserves.
    "We must encourage research now in order to make synfuels
competitive later," Hall said. The average lead time for
development of a shale oil or liquified coal project is between
five and ten years.
    Until last year, the federal government had subsidized
synfuels development through the U.S. Synthetic Fuels Corp., a
research program created during the Carter Administration with
the goal of developing replacements for up to two mln barrels
of oil.
    The corporation was shut down last April when Congress
refused to continue funding its eight billion dlr budget
because of uneconomic projects based on forecasts of 50 dlrs a
barrel oil and 10 dlr per mcf natural gas during this decade.


.I 17180
.C
wheat;grain;
.W
OKLAHOMA WEEKLY CROP REPORT.
    OKLAHOMA CITY, March 30 - The Oklahoma weekly USDA crop
report said cold weather slowed crop development and caused
some cattle deaths.
    Wheat growth was halted by cold weather, and rain early in
the week prevented fertilizer application and weed spraying.
Fields in the west were short of nitrogen, and moderate insect
activity was noted in the southwest region.
    Wheat condition was rated 15 pct fair, 84 pct good and one
pct excellent.
    Row crop activity was very slow amid wet conditions.
Topsoil moisture was rated 30 pct adequate and 70 pct surplus,
and subsoil moisture was rated 100 pct adequate. Only two days
were suitable for fieldwork.


.I 17181
.C
dlr;money-fx;
.W
BRAZIL TEMPORARILY LEGALISES DLR PARALLEL MARKET.
    By Rene Villegas, Reuters
    BRASILIA, March 30 - Brazilian President Jose Sarney
announced a move which temporarily legalises the purchase of
U.S. dollars in the parallel currency market, aimed at
promoting imports of foreign goods.
    In a speech, Sarney justified his measure as a need to face
"current well known difficulties to obtain foreign loans for the
purchase of goods."
    The parallel market, although officially tolerated, is
technically illegal in Brazil. For the past year, the dollar in
the parallel market has sold at between 25 and 100 pct above
the official rate.
    Sarney's decision means Brazilian importers of machinery
and industrial equipment can buy dollar currency in the
parallel market without having to wait for an official order
from the Banco do Brasil's Foreign Trade Department (Cacex).
    Sarney also announced measures to boost exports in an
effort to strengthen the country's trade balance and alleviate
the risk of a reduction of foreign loans for this sector of the
economy.
    The president authorised the National Foreign Trade Council
(CONEX) to resume operating as the ruling body of Brazil's
trade policy, with participation of the private sector.
    The Council had been closed three years ago by the military
government of former President Joao Figueiredo.


.I 17182
.C
iron-steel
.W
USX <X> UNIT RAISES SOME STEEL PRICES.
    PITTSBURGH, March 30 - USX Corp said its USS steelmaking
division increased prices on plate and H-pile products.
    Effective with May three shipments, it said the price base
on carbon and high-strength low-alloy, or HSLA, H-piles will
increase by 1-1/2 cts per pound.
    Effective with shipments beginning June 28, the price on
carbon, HSLA, and alloy plates will increase by 1-1/4 cts per
pound. Strip mill plate prices will rise by 3/4 cts per pound.
    It said the price increases on plate and H-pile products
will apply to all shipments from USS plants.


.I 17184
.C
earn
.W
CANADA BANKS COULD SEE PRESSURE ON BRAZIL LOANS.
     By Peter Cooney, Reuters
    TORONTO, March 30 - Canada's major banks will likely face
stiff pressure to declare their Brazilian loans non-performing
if, as expected, major U.S. banks take similar action after the
end of their first quarter tomorrow, analysts said.
    American bankers said last week that slow progress in debt
talks with Brazil increased the likelihood that U.S. banks
would soon declare their Brazilian loans non-performing.
    Such action "would put a lot of pressure on the Canadian
banks to do the same," Levesque, Beaubien Inc Toronto-based bank
analyst Donna Pulcine told Reuters.
    "They (banks) like to appear to be conservative," said
Pulcine, "and if a major bank puts loans on a non-performing
basis and the Canadian banks don't, there is going to be a lot
of pressure from shareholders as to why one bank is considering
the loans non-performing and another bank is not."
    Wood Gundy Inc bank analyst Patricia Meredith said any
willingness by a major Brazilian bank creditor such as Citicorp
<CCI> to declare its Brazilian loans non-performing rather than
let Brazil dictate settlement terms would provide a compelling
example for other creditor banks.
    "In order to make that strategy work, they (Citicorp) have
to have the support of the other banks," said Meredith.
    Bank analyst Michael Walsh at First Marathon Securities Ltd
said at least one Canadian bank, which he declined to identify,
"wants to put (the Brazilian loans) on a non-performing basis
and is trying to encourage the others to take that position."
    Canadian banks are owed about seven billion Canadian dlrs
by Brazil, which late last month suspended interest payments on
its 68 billion U.S. dlr foreign bank debt.
    Banks in Canada, although allowed to wait up to 180 days
before declaring loans on which they are receiving no interest
as non-performing, usually move on such loans within 90 days.
They could therefore delay action on the Brazilian loans until
late May, which falls in Canadian banks' third quarter ending
July 31.
    <Bank of Montreal>, Brazil's largest Canadian bank
creditor, said last week it was not currently considering
declaring its 1.98 billion dlrs of Brazilian loans as
non-performing.
    "I think that is just for the benefit of the public," Walsh
said of Bank of Montreal's statement. 
    Some analysts predicted minimal earnings impact on Canadian
banks from a move to declare the Brazilian loans
non-performing.
    They said Brazil would likely resume interest payments by
the banks' fiscal year-end on October 31, thus allowing banks
to recoup their lost interest income.
    "From what Brazil has said, it is quite likely the banks
will get the money," said Meredith. "My outlook at this point is
optimistic that there will be no adjustment for the full-year's
earnings."
    Meredith forecast 1987 fully diluted per share earnings of
3.80 dlrs for <Royal Bank of Canada> compared with 3.74 in
1986; 4.30 dlrs for <Bank of Montreal> compared with 3.59; 2.25
dlrs for <Canadian Imperial Bank of Commerce> compared with
2.23;  2.15 dlrs for <Bank of Nova Scotia> compared with 1.94,
and 2.85 dlrs for <Toronto Dominion Bank> against 2.74.
    She forecast 1.90 dlrs for <National Bank of Canada>
against 3.30 dlrs before a two for one stock split.
    Analyst Pulcine said she might lower full-year earnings
estimates for the banks by between two cts and 10 cts a share,
assuming a possible settlement reduced Brazil's interest costs.
    "If the banks didn't receive anything for the rest of the
fiscal year, the impact could range from 16 cts to 70 cts a
share. But I don't see that as a likely scenario," Pulcine said.
    Walsh at First Marathon suggested, however, that the
Brazilian debt situation was so complex that "it could drag on
beyond one full fiscal year."
    He said he foresaw having to lower his 1987 fiscal earnings
forecasts for the banks. He estimated that Brazil's yearly
interest payments to Canadian banks totaled about 575 mln dlrs
or about 10 pct of their total 1986 pre-tax earnings.


.I 17185
.C
earn;iron-steel;alum;
.W
VENEZUELA PLANS METALS INVESTMENT FOR 1987-89.
    CARACAS, March 30 - The Venezuela Guayana Corporation, CVG,
which oversees the state steel, iron, aluminum and other
industries, will invest 75 billion bolivars in new projects
during 1987-89, CVG president Leopoldo Sucre Figarella
announced.
    The investments will go to plant expansion, infrastructure
and the extension of hydroelectric facilities in the
mineral-rich Guayana region, south of the Orinoco river.
    Sucre Figarella told a news conference the CVG's 12
companies showed an overall increase of 120 pct in profits,
which rose from 1.732 billion bolivars in 1985 to 3.926 billion
bolivars last year.
    Among the best performers was steel company Sidor which
earned 1.019 billion bolivars, the first time since 1978 Sidor
turned a profit.
    The gain was made possible in part by the refinancing of
1.619 mln dollars of foreign debt.
    CVG's three aluminum companies also showed substantial
gains. Interalumina, which makes the intermediate material
alumina, had an increase in profits from 116 to 217 mln
bolivars, Alcasa earned 487 mln bolivars, as compared to 1985's
412 mln and Venalum's profits rose by around half, from 1.042
to 1.504 bln bolivars.
    Meanwhile, the state iron company Ferrominera saw its
profits rise from 156 mln bolivars in 1985 to 204 mln bolivars
last year.


.I 17187
.C
acq
.W
INFINITY <INFTA> TO PURCHASE AM/FM STATION.
    NEW YORK, March 30 - Infinity Broadcasting Corp said it
entered an agreement to acquire radio stations KVIL AM/FM from
Sconninx Broadcasting Co for 82 mln dlrs.
    Upon completion of the transaction, Infinity will own nine
FM and four AM stations in 10 major markets.
    The transaction is subject to FCC approval.


.I 17188
.C
bop
.W
******N.Z. FEBRUARY CURRENT ACCOUNT DEFICIT 78 MLN V 93 MLN JAN - GOVT.
Blah blah blah.

.I 17189
.C
earn
.W
BULL AND BEAR GROUP INC <BNBGA> YEAR END DEC 31.
    NEW YORK, March 30 -
    Shr loss 45 cts vs profit 25 cts
    Net loss 641,000 vs profit 352,000
    Revs 5,747,000 vs 3,038,000


.I 17193
.C
earn
.W
FRETTER INC <FTTR> 4TH QTR JAN 31 NET.
    LIVONIA, Mich., March 30 -
    Shr loss five cts vs profit 36 cts
    Net loss 784,000 vs profit 4,793,000
    Revs 90 mln vs 79 mln
    Year
    Shr profit 27 cts vs profit 65 cts
    Net profit 4,010,000 vs profit 8,539,000
    Revs 273 mln vs 214 mln


.I 17194
.C
acq
.W
AMFAC <AMA> TO SELL STORE.
    SAN FRANCISCO, March 30 - Amfac Inc said it entered an
agreement to sell the last remaining store of its original
Liberty House of California operation to H and S - San Mateo
Inc.
    Terms were not disclosed.


.I 17195
.C
acq
.W
HARPER INTERNATIONAL <HNT> IN ACQUISITION.
    SAN ANTONIO, Texas, March 30 - Harper International Inc
said it intends to buy the major asset, patents and trade name
of Demarkus Corp, a designer and installer of process gas
systems for the soft drink and brewing industries.
    The purchase price is about 125,000 dlrs.
    Demarkus' sales were 470,000 dlrs in 1986.


.I 17196
.C
dlr;money-fx;
.W
SARNEY TEMPORARILY LEGALISES DLR PARALLEL MARKET.
    By Rene Villegas, Reuters
    BRASILIA, MARCH 30 - Brazilian President Jose Sarney
announced a move which temporarily legalises the purchase of
U.S. Dollar currency in the parallel market, aimed at promoting
imports of foreign goods.
    In a speech, Sarney justified his measure as a need to face
"current well known difficulties to obtain foreign loans for the
purchase of goods."
    The parallel market, although tolerated, is technically
illegal. For the past year, the dollar in the parallel market
is being sold at 25 to 100 pct above the official rate.
    Sarney's decision means that Brazilian importers of
machinery and industrial equipment can buy dollar currency in
the parallel market without having to wait for the issuing of
an official order from the Banco do Brasil's Foreign Trade
Department (Cacex).
    Sarney also announced measures to boost exports in an
effort to strengthen the country's trade balance and alleviate
the risk of a reduction of foreign loans for this sector of the
economy.
    The president authorised the National Foreign Trade Council
(CONEX) to resume operating as the ruling body of Brazil's
trade policy, with participation of the private sector.
    The Council had been closed three years ago by the military
government of former President Joao Figueiredo.
    Tomorrow, Brazil was due to fulfill payment of 15 billion
dollars in short range credit lines, but its economic officials
have suggested a 60-day extension in the deadline in order to
seek a renegotiation with its creditors.
    Sarney told members of the Council that for Brazil it is a
must to recover its annual trade balance surplus to the 12
billion dollars average recorded in 1984 and 1985, and which
dropped sharply last year to 8 billion dollars.
    He attributed the poor performance of Brazil's trade
balance in 1986 to protectionist moves by industrialised
countries, the fall in the prices of basic goods and the crisis
faced by several of Brazil's Third World trade partners.


.I 17197
.C
acq
.W
OLSON INDUSTRIES <OLSN> TO SELL EGG OPERATIONS.
    SHERMAN OAKS, Calif, March 30 - Olson Industries Inc said
it signed a letter of intent to sell substantially all of its
remaining egg operations to Sunny Fresh Foods inc.
    Olson said it expects to receive about nine mln dlrs from a
combination of a sale of tangible assets to Sunny Fresh and
realization of intangible and other assets by Olson.
    The transaction is expected to result in a charge for
discontinued operations of about two mln dlrs but is also
expected to generate substantial cash flow to pay off
egg-related indebtedness of about 7.5 mln dlrs and to further
improve working capital.


.I 17198
.C
bop
.W
N.Z. FEBRUARY CURRENT ACCOUNT DEFICIT NARROWS.
    WELLINGTON, March 31 - New Zealand's current account
deficit narrowed to 78 mln dlrs in February from 93 mln in
January and 233 mln in February 1986, in a smoothed seasonally
adjusted measurement, the statistics department said.
    This is the first time current account figures have
appeared in a seasonally adjusted form.
    Non-seasonally adjusted but smoothed figures show a deficit
of 112 mln dlrs against 144 mln in January and 281 mln in
February 1986.
    Totally unadjusted figures show a deficit of 47 mln dlrs
against 168 mln in January and 227 mln in February 1986.
    The smoothed seasonally adjusted series shows a surplus on
merchandise trade of 174 mln dlrs after 161 mln in January and
33 mln in February 1986.
    Smoothed but non-seasonally adjusted figures show a
merchandise trade surplus of 114 mln dlrs against 81 mln in
January and a 47 mln dlr deficit in February 1986.
    Unadjusted merchandise figures show a surplus of 168 mln
against 36 mln in January and 22 mln in February 1986.
    The deficit on invisibles was 241 mln dlrs against 242 mln
in January and 250 mln in February 1986.
    The smoothed but not seasonally adjusted deficit on
invisibles was 226 mln dlrs against 225 mln in January and 234
mln in February 1986.
    The unadjusted deficit on invisibles was 215 mln dlrs
against 204 mln in January and 249 mln in February 1986.
    Seasonally adjusted export and import figures were not
available but the department said they will be included in
future current account data.
    Smoothed but non-seasonally adjusted exports were 924 mln
dlrs, unchanged from January, against 843 mln in February 1986.
    Smoothed but non-seasonally adjusted imports were 810 mln
dlrs against 843 mln in January and 890 mln in February 1986.


.I 17200
.C
acq
.W
******GENCORP REJECTS UNSOLICITED TAKEOVER BID FROM AFG INDUSTRIES/WAGNER AND BROWN.
Blah blah blah.

.I 17204
.C
acq
.W
GROUP SELLS STAKE IN COMDATA NETWORK <CDN>.
    WASHINGTON, March 30 - A group of investment firms which
had once sought control of Comdata Network Inc, told the
Securities and Exchange Commission it sold its remaining
1,113,500-share, or 5.9 pct, stake in the company.
    The group, which had owned as much as 9.5 pct of the total,
said it sold the stake on March 27 at 15-3/4 dlrs a share. Last
week it sold 455,000 Comdata shares.
    Group members are CNI Partners, an investment partnership,
Mason Best Co, a Texas investment partnership, and Houston
Imperial Corp, a real estate development firm.


.I 17205
.C
acq
.W
GENCORP <GY> REJECTS UNSOLICITED TAKEOVER BID.
    AKRON, OHio, March 30 - Gencorp Inc said its board urged
shareholders to reject the hostile unsolicited 100 dlr a share
tender offer made March 18 by General Acquisition Inc, an
affiliate of Wagner and Brown and AFG Industries INc.
    Gencorp also said it is developing a financially superior
alternative that would enable shareholders to benefit from the
full value of the company.
    In a letter to shareholders, Chairman A. William Reynolds 
said the offer is a "highly conditional, contingently financed
bust-up offer" that seeks to deny shareholders the true value
of their investment in Gencorp.
    Reynolds said the board reached its decision to reject the
offer after careful study with legal and financial advisers. He
said the board has authorized management to explore
alternatives aimed at providing shareholders with a
"financially superior" alternative to the general acquisition
offer.
    A Gencorp spokesman, in response to questions, would not
comment on market speculation that the company's management may
develop a leveraged buyout offer of its own. He would also not
comment on when a better alternative might be developed.
    Gencorp's stock has traded well above the 100 dlr offer
price since the tender was made. Today, Gencorp closed at
114-1/4, up 1-5/8.
    Reynolds said in the letter that for the last few years,
Gencorp management has taken action to enhance shareholder
value, and the stock price and earnings have improved since he
joined the company.
    Gencorp said the partnership's offer is a "bargain price"
acquisition that was "using financing from a syndicate of banks
that does not yet exist and a bridge loan from Shearson Lehman
brothers that shearson is not obligated to provide."
    Reynolds also said the offer would result in a radical
alteration and selloff of Gencorp's assets, including Aerojet
General to refinance General Acquisition's borrowings with the
profits going to Wagner and Brown and AFG instead of
shareholders.
    The letter also said the General Acquisition offer
"jeopardizes the security and interests" of its shareholders,
employees, customers, suppliers and the communities throughout
the country where the company's facilities are located.


.I 17206
.C
earn
.W
DOME MINES LTD <DM> 4TH QTR NET.
    TORONTO, March 30 -
    Shr profit 17 cts vs loss three cts
    Net profit 14,918,000 vs loss 2,732,000
    Revs 74.8 mln vs 54.7 mln
    YEAR
    Shr profit 80 cts vs profit 15 cts
    Net profit 71.6 mln vs profit 12.2 mln
    Revs 293.4 mln vs 222.8 mln
    Note: 1986 fl-yr net includes extraordinary gain of 56.3
mln dlrs from investment sales, gain on share issue by 57
pct-owned Campbell Red Lake Mines Ltd <CRK> and provision for
decline in value of marketable securities. 1985 fl-yr net
includes gain of 10.1 mln dlrs.
    1985 revs restated to exclude revenues from discontinued
coal mining operations.
    Under U.S. accounting practises, Dome Mines would have
reported 1986 loss of 192.9 mln dlrs or 2.17 dlrs shr vs yr-ago
loss of 24.9 mln dlrs or 32 cts shr, reflecting different
principles in accounting for 22 pct stake in Dome Petroleum Ltd
<DMP> and 1986 oil and gas writedown.


.I 17210
.C
crude
.W
U.S. SHOULD REASSESS MIDEAST POLICY - ANALYST.
     SAN ANTONIO, TEXAS, March 30 - The U.S. should reassess
its Mideast policy in light of its rising dependence on
imported oil, according to Charles Ebinger of the Center for
Strategic and International Studies.
     "The prospect of rising dependence on oil imports from the
Gulf, and the recent revelations of the Tower Commission
report, mandate more than ever before the need for a
fundamental reassessment of U.S. interests in the Middle East,"
Ebinger said.
     He remarks were made in an address to the National
Petroleum Refiners Association meeting.
     "Although in the short run it is difficult to see a direct
link between Arab anger and threats to oil supplies, in the
current environment it will be increasingly difficult for
moderate Arab leaders to be seen as friendly to U.S.
interests," Ebinger said.
     Oil traders said threats to oil supplies has kept crude
oil prices strong recently although some believe prices will be
weaker if demand falls in the spring.
    But William Randol, analyst at First Boston Corp, said
crude oil prices will hold  near current levels this spring.
    There will be no spring downturn, said Randol, speaking at
the annual refiner meeting. He said there is a 40 pct chance
that crude oil prices could move higher in the second half of
the year, following an OPEC meeting scheduled for late June.
    He said he expects OPEC will extend its current agreement
to restrict production.
    OPEC will renew its production pricing agreement in June
because the value of the oil exports of the OPEC producers  has
declined along with the U.S. dollar, Randol said.
    OPEC oil exports are priced in U.S. dollars, and the dollar
has fallen about 30 pct in the last 18 months.
    Randol said U.S. crude oil imports will increase 3.5 to
four mln barrels per day by 1990 as consumption rises 1.5 to
two mln bpd, and supplies decline two mln bpd.


.I 17214
.C
earn
.W
ENVIROSURE MANAGEMENT CORP <ENVS> 1ST QTR LOSS.
    BUFFALO, N.Y., March 30 - Qtr ended Nov 30
    Shr loss nil vs profit nil
    Net loss 1,321,940 vs profit 128,164
    Revs 4,582,260 vs 5,115,456


.I 17215
.C
earn
.W
COMMERCIAL METALS CO <CMC> SETS QTLY DIVIDEND.
    DALLAS, March 30 - 
    Qtly div eight cts vs eight cts prior
    Pay April 24
    Record April 10


.I 17217
.C
earn
.W
IMPERIAL <ICA> DECLARES FIRST DIV SINCE 1981.
    SAN DIEGO, Calif, March 30 - Imperial Corp of America said
it declared a 10 cts dividend and four pct stock dividend on
APril 25 to holders of record April 10.
    This is the first dividend payment since 1981, the company
said.


.I 17219
.C
earn
.W
SMITH INTERNATIONAL INC <SII> 4TH QTR LOSS.
    NEWPORT BEACH, Calif.
    Shr loss 1.95 dlrs vs loss 9.10 dlrs
    Net loss 44.4 mln vs 206.8 mln
    Revs 84.1 mln vs 172.4 mln
    Year
    Shr loss 6.56 dlrs vs loss 11.66 dlrs
    Net loss 149.0 mln vs loss 265.1 mln
    Revs 415.2 mln vs 697.3 mln
    Note: Current qtr net includes pretax charges of 10.7 mln
dlrs against inventory adjustments and currency costs related
to fluctuations of Italian lira.
    Current year net includes pretax charges of 46.6 mln dlrs
for provision to reduce carrying value of excess capital assets
and to writedown certain inventories and other assets. Also
includes charges of 18 mln dlrs covering costs of workforce
reductions, relocation and Chapter 11.
     Year-ago net includes pretax charges related to judgment
against company in litigation with Hughes Tool Co of 189.1 mln
for qtr and 216.9 mln dlrs for 12 mths.


.I 17220
.C
jobs
.W
******Japan February unemployment falls to 2.9 pct (3.0 pct in January) - official.
Blah blah blah.

.I 17221
.C
jobs
.W
JAPAN UNEMPLOYMENT FALLS IN FEBRUARY.
    TOKYO, March 31 - Japan's seasonally adjusted unemployment
rate fell to 2.9 pct in February from the record 3.0 pct in
January, the government's Management and Coordination Agency
said.
    The January level was the worst since the Goverment started
compiling unemployment statistics under the current system in
1953.
    Unemployment was up from 2.8 pct a year earlier.
    Unadjusted February unemployment totalled 1.86 mln people,
up from 1.82 mln in January and 1.64 mln a year earlier.
    Male unemployment in February remained at 2.9 pct, equal to
the second-highest level set in January and December. Record
male unemployment of 3.1 pct was set in July 1986.
    Female unemployment rose to a record 3.1 pct in February
from the previous record 3.0 pct marked in January 1987 and in
April, August, September and December last year.
    "Japan's employment condition was still severe in February
as the non-rounded rate of unemployment in February fell only
0.03 percentage points to 2.93 pct from 2.96 pct in January," an
agency official said.
    Employment in manufacturing industries fell 430,000 from a
year earlier to 14.22 mln people in February due to the yen's
continued appreciation, while employment in non-manufacturing
industries rose 380,000 to 12.11 mln.
    In manufacturing industries, employment in the textile
industry fell 180,000 to 1.94 mln in February, while in
ordinary and precision machinery industries it fell 160,000 to
1.50 mln.


.I 17222
.C
acq
.W
PARTNERS CALL GENCORP<GY> RESPONSE UNPRODUCTIVE.
    NEW YORK, March 30 - General Acquisition Co said it was
disappointed by Gencorp's response to its tender offer and
questioned how the company might give better value to
shareholders.
    Gencorp earlier urged shareholders to reject a 100 dlr per
share tender offer from the partnership, which includes Wagner
and Brown and AFG Industries Inc. The company said it was
studying financially superior alternatives.
   The partnership called the response inflammatory and
unproductive, particularly since it had attempted to discuss
the offer with Gencorp.
     The partnership said Gencorp failed to say how it would
provide a "superior value yet they continue their attempt to
prevent a satisfactory offer by failing to redeem their poison
pill." Poison pills are shareholder rights plan that make
takeovers more expensive.
    Gencorp said in its statement earlier that the date its
rights will trade separately from the common stock was extended
to April six from April three. It said the extension was
subject to further extensions by the board and is conditioned
on no person aquiring beneficial ownership of 20 pct or more of
Gencorp prior to April six.
    General Acquisition said it is confident its offer can be
completed in a timely manner using its financial arrangements.
    The partnership in its statement again urged management to
work with it to facilitate a transaction.
   


.I 17223
.C
dlr
.W
******MIYAZAWA SAYS DOLLAR BELOW 150 YEN IS COUNTER TO PARIS ACCORD.
Blah blah blah.

.I 17224
.C
dlr
.W
DLR BELOW 150 YEN COUNTER TO PARIS PACT - MIYAZAWA.
    TOKYO, March 31 - Finance Minister Kiichi Miyazawa said he
regards a U.S. Dollar below 150 yen as counter to the agreement
struck by major nations in Paris last month.
    He told the Upper House Budget Committee in Parliament that
Japan intervened in the market when the dollar went below 150
yen, as it considered the dollar's fall below that level
counter to the spirit of the Paris accord.
    Commenting on current foreign exchange movements, Miyazawa
said Japan would watch developments for another couple of days.
    Institutional investors appeared to have sold dollars to
hedge currency risks ahead of the end of the financial year
today, Miyazawa said.
    Behind the recent dollar fall lies the market perception
that major nations were not doing enough to implement their
policies under the Paris pact, he said, noting that passage of
Japan's 1987/88 budget has been delayed.
    He said that now was the time for major nations to act
under the Paris accord. The U.S., West Germany, France,
Switzerland and Britain have intervened on their own account to
prop up the dollar, he said. This was a concerted action.


.I 17225
.C
dlr
.W
******BANK OF JAPAN BUYS DOLLARS AROUND 145.75 YEN - DEALERS.
Blah blah blah.

.I 17227
.C
sugar
.W
PAKISTAN BIDS FOR IMPORT OF 100,000 TONNES SUGAR.
    KARACHI, March 30 - Trading Corp of Pakistan Ltd said it
had invited tenders up to April 11, 1987 for the import of
100,000 tonnes of white refined crystal sugar up to June.
    It said each cargo should consist of 15,000 tonnes. Four
cargoes should reach Port Bin Qasim or Karachi Port (buyers
option) by May 31 and the balance by June 30, 1987, it added.


.I 17229
.C
earn
.W
WOODSIDE PETROLEUM LTD <WPLA.S> 1986 YEAR.
    MELBOURNE, March 31 -
    Shr nil vs same
    Final and yr div nil vs same
    Pre-tax, pre-minorities loss 3.53 mln dlrs vs profit 17.40
mln.
    Net attributable loss 17.14 mln dlrs vs loss 8.73 mln
    Sales 220.84 mln vs 173.50 mln
    Other income 17.77 mln vs 12.02 mln
    Shrs 666.67 mln vs same.
    NOTE - Attributable net loss is after tax 10.04 mln dlrs vs
18.59 mln, interest 82.36 mln vs 65.94 mln, depreciation 64.77
mln vs 35.74 mln and minorities 3.57 mln vs 7.55 mln but before
net extraordinary loss 1.22 mln vs loss 3.91 mln.


.I 17231
.C
housing
.W
JAPAN HOUSING STARTS RISE IN FEBRUARY.
    TOKYO, March 31 - Japan's housing starts in February rose
13.4 pct from a year earlier to 109,254, the 10th successive
year-on-year gain, the Construction Ministry said.
    February housing starts were up 16.8 pct from 93,554 in
January when they fell 27.4 pct from a month earlier but rose
10.3 pct from a year earlier.
    Higher housing starts were mainly due to a 26.8 pct
year-on-year rise in apartment building starts to 51,829 for
the 56th consecutive gain, spurred primarily by lower domestic
interest rates.
 RUTER

.I 17232
.C
earn
.W
WOODSIDE SAYS LOSS REFLECTS LOWER OIL PRICES.
    MELBOURNE, March 31 - Woodside Petroleum Ltd <WPLA.S> said
its 1986 net loss largely reflected the drop in oil prices
combined with a large tax provision.
    Woodside earlier reported attributable net loss rose to
17.14 mln dlrs in 1986 from 8.73 mln in 1985, although group
revenue rose to 220.84 mln from 173.50 mln.
    It said it should have received a 1.7 mln dlr tax credit
but instead made a 10.04 mln dlr tax provision. This largely
related to its <Vamgas Ltd> unit, non-allowable exchange losses
and tax benefits from the North-West Shelf project not
recognised in the accounts.
    Woodside said the rise in revenue largely reflected full
year sales of gas and condensate from the domestic phase of the
Shelf project, against six month sales in 1985.
    Offsetting this was a 23 pct fall in the Cooper Basin gas
and liquids revenue of its 50.6 pct-owned Vamgas unit.
    Since the balance date Woodside has accepted a Santos Ltd
<STOS.S> takeover offer for Vamgas.
    Woodside said a 92.8 mln dlr capital profit on the sale
would be included in the 1987 accounts.
    It said it lifted capital spending on fixed assets to 269.6
mln dlrs from 178.3 mln, mostly on the Shelf project.


.I 17234
.C
sugar
.W
THAILAND EXPECTS SMALLER SUGARCANE OUTPUT.
    BANGKOK, March 31 - Thailand's sugarcane output will fall
to about 23.55 mln tonnes in the 1986/87 (November-October)
season from 24.09 mln in 1985/86, the Agriculture Ministry
said.
    It said a January survey put the total area under sugarcane
at 545,528 hectares, down from 556,860 hectares the previous
year.
    The national average yield is expected to fall to 43.17
tonnes/hectare from 43.22 tonnes in 1985/86, it said.


.I 17235
.C
trade
.W
EUROPEAN COMMUNITY TO SET UP OFFICE IN PEKING.
    PEKING, March 31 - China and the European Community (EC)
signed an agreement on the establishment of an EC office here.
    Chinese vice-foreign minister Zhou Nan and the EC's
external relations commissioner, Willy De Clercq, signed the
accord. EC sources said the office was likely to open in the
second half of this year.
    In 1986 the EC was China's third largest trading partner,
with Chinese imports from the EC worth 5.7 billion dlrs and
exports worth 2.6 billion dlrs.
    De Clercq told the official China Daily that more joint
ventures should be set up in China as a way of reducing China's
trade deficit with the EC.
    The EC's affairs in China are currently looked after by
whichever country holds the group's six-monthly rotating
presidency, now held by the Belgians until the Danes take over
in July.


.I 17236
.C
trade
.W
TRADE FRICTION THREATENS TO TOPPLE NAKASONE.
    By Linda Sieg, Reuters
    TOKYO, March 31 - Prime Minister Yasuhiro Nakasone may have
been dealt a fatal political blow by the yen's renewed rapid
rise and the threat of a trade war with the United States,
political analysts said.
    Nakasone, already under fire over an unpopular tax reform
plan, may now be forced to resign before the June economic
summit of seven industrialised nations if local elections later
next month go against candidates from his ruling Liberal
Democratic Party (LDP), they said.
    "The close relationship between Nakasone and President
Reagan was an important element of Nakasone's power base,"
Waseda University Political Science Professor Mitsuru Uchida
told Reuters. "So the emergence of U.S. Criticism damages
Nakasone."
    Even before the latest trade friction flared, Nakasone was
encountering criticism not only from opposition parties but
also within his own LDP over his proposal to levy a sales tax.
    "Many factions within the LDP are distancing themselves from
Nakasone," Uchida said. "His position within the LDP itself is
not so strongly established today."
    Nakasone, who has been more popular with the general public
than with many LDP members, is now seeing his public support
eroded, the analysts said.
    The yen's rise to record highs and the U.S. Threat on
Friday to impose tariffs on Japanese electronics goods in
retaliation for Japan's alleged violation of a microchip trade
pact are now giving Nakasone's critics fresh ammunition, the
analysts said.
    "Apparently the special relationship between Reagan and
Nakasone hasn't worked effectively," Rei Shiratori, director of
the Institute for Political Studies in Japan, said.
    This is making the Japanese people doubt Nakasone's
credibility, Shiratori told Reuters.
    The cumulative impact of the sales tax issue, the yen's
rise and mounting trade friction could mean serious LDP losses
in the April 11 and 26 local elections, analysts said.
    "If the elections go against the LDP, Nakasone may have to
resign early," Shiratori said.
    But Nakasone still has a chance to soothe U.S. Tempers
before or during his week-long Washington visit from April 29,
some analysts said.
    However, "unless the Japanese political system can move more
quickly to give Nakasone some nice present to take to
Washington on smouldering trade issues, he will face a very
hostile audience," said Merrill Lynch Securities economist
William Sterling.
    "If the trip is a major disaster, it would seem to put the
final nail in his coffin," he said.
    Reagan's own weakened domestic position, and growing
Republican as well as Democratic anger with Japan, argue
against a quick settlement to the trade dispute, the analysts
said.
    But a desire on both sides to find some solution, coupled
with uncertainty at home and abroad over likely successors to
Nakasone, could still lead to an attempt to paper over the
differences and aid Nakasone, they said.
    "One factor against a trade war may be that Washington is
not anxious to push Nakasone into his grave," Sterling said.


.I 17238
.C
acq
.W
CSR SELLING DELHI TO EXXON UNIT, DROPS DELHI FLOAT.
    SYDNEY, March 31 - CSR Ltd <CSRA.S> and Exxon Corp <XON>
unit <Esso Exploration and Production Australia Inc> said CSR
has agreed to sell its <Delhi Australia Fund> (DAF) to Esso for
985 mln Australian dlrs.
    The sale is effective from tomorrow, they said in a joint
statement.
    The previously announced float of part of its Delhi
interest will not now proceed, CSR said in the statement.
    Delhi Australia Fund owns <Delhi Petroleum Pty Ltd>, which
holds an average of 25 pct in the Santos Ltd <STOS.S>-led
Cooper and Eromanga Basin gas and liquids projects.
    In addition to the purchase price, CSR will share equally
in any returns due to increases in crude oil and condensate
prices over certain levels for liquids produced from Delhi's
interests in the next two years, the statement said.
    "The Esso proposal to purchase all the Delhi interest will
be more beneficial to our shareholders than proceeding with the
float," CSR chief executive Bryan Kelman said in the statement.
    Kelman said the sale of Delhi would enable CSR to focus
efforts on expanding business areas such as sugar and building
materials in which CSR has had long and successful management
experience and strong market leadership.
    With the sale, CSR will be able to expand those businesses
more aggressively and earlier, he said.
    As reported separately, soon after announcing the Delhi
sale CSR launched a takeover bid for the 68.26 pct of <Pioneer
Sugar Mills Ltd> that it does not already hold, valuing its
entire issued capital at 219.6 mln dlrs.
    After Bass Strait, the onshore Cooper and Eromanga Basin is
Australia's largest oil and gas producing area with current
gross oil production of 45,000 barrels per day (BDP), gas
liquids output of 30,000 BPD and gas sales of 480 mln cubic
feet a day, the CSR-Esso statement said.
    The purchase gives Esso, a 50/50 partner with The Broken
Hill Pty Co Ltd <BRKN.S> in the Bass Strait, its first onshore
production in Australia, they said.
    Esso's chairman Stuart McGill said he hoped Esso can assist
in maintaining the high rate of oil and gas discoveries in the
Cooper-Eromanga area.
    "These discoveries will help Australia's self-sufficiency in
oil reserves thereby offsetting in part the decline in Bass
Strait production now under way," McGill said.
    In a separately released letter to CSR shareholders, Kelman
said CSR was within days of completing plans for the float of
CSR Petroleum when it received an offer from Esso.
    He said CSR is convinced the sale was the correct decision
in view of the risks associated with the oil business.
    The price-sharing arrangement provides for CSR to share
equally with Esso in higher returns if oil prices average more
than 20 U.S. Dlrs a barrel in the next two years, he said.
    Kelman said a revaluation of CSR's investment in Delhi to
net realisable value as of today, CSR's annual balance-date,
will result in an extraordinary loss of 97 mln dlrs.
    However, revaluations and profits on sales of other assets
will significantly reduce this loss, he said.
    He also said that CSR is sufficiently encouraged by future
prospects and the opportunity to reposition the group in core
businesses to foreshadow an increase in final dividend payable
in July to 10 cents from nine to make an annual 19 cents
against 18 in 1985/86.


.I 17240
.C
iron-steel
.W
JAPAN TO PAY FIVE PCT LESS FOR INDIAN IRON ORE.
    NEW DELHI, March 31 - Japan will pay five pct less for the
Indian iron ore it imports in fiscal 1987/88 starting April 1
than the average 18 dlrs a tonne it paid in 1986/87, a
government trade official told Reuters.
    He said India had agreed to export to Japan about 23 mln
tonnes of iron ore in 1987/88, about the same as in the current
year.
    The official described the agreement as satisfactory
overall. He said it was signed by an official Indian trade
delegation and Japanese businessmen in Tokyo last week.
    The official said it was encouraging that Japan had agreed
not to reduce ore imports from India although Japan's total
iron ore imports would be lower in the coming year because of
the recession in the Japanese steel industry.
    He said Japanese ore imports in calendar 1987 would total
96 mln tonnes, compared with 103.5 mln in 1986.
    Government officials said India's total ore exports are
likely to rise to between 33 and 34 mln tonnes in 1987/88,
against a provisionally estimated 31 mln in 1986/87.


.I 17242
.C
earn
.W
COMMERZBANK INCREASES DIVIDEND, PARENT NET PROFIT.
    FRANKFURT, March 31 - Commerzbank AG <CBKG.F> said a
dividend of nine marks would be proposed for ordinary
shareholders on 1986 earnings after eight in 1985.
    It added in a statement that parent net profit rose to
288.2 mln marks in 1986 from 221.7 mln the prior year.
    A Commerzbank spokesman noted the figures were,however,
preliminary and required approval of the bank's supervisory
board which meets today.
    The Commerzbank statement added the distributable profit
last year rose to 228.2 mln marks from 161.7 mln in 1985.
    With inclusion of the corporate tax allowance, qualifying
domestic shareholders would receive an effective dividend of
14.06 marks per share.
    Total dividend payout would rise to 186.8 mln marks from
142.0 mln on 1985 earnings due to the increase in the dividend
and in equity capital, it added.
    From the parent net profit, 60 mln marks would be placed in
published reserves, unchanged from the two prior years.
    The shareholders' meeting take place on May 22 in Hamburg.
    The statement said holders of Commerzbank participation
certificates in a total nominal value of 425 mln marks would
receive the remaining 41.4 mln marks of the distributable
profit. Aside from the basic payment of 8.25 pct of nominal
value, certificate holders would receive an additional 1.5 pct.
    The management board of the bank would also propose two
capital measures to shareholders in order to be able to react
quickly to new challenges.
    It would ask for authorised capital of a nominal 200 mln
marks for the issue of new shares and for 300 mln for the issue
of warrant bonds, both for the period until April 30, 1992.


.I 17244
.C
coffee
.W
INDIA REDUCES EXPORT DUTY ON COFFEE.
    NEW DELHI, March 31 - India cut the export duty on coffee
to 330 rupees per 100 kg from 600 rupees, effective March 23, a
Coffee Board official said.
    The reduction should help India reach its coffee export
target of 90,000 tonnes in fiscal 1987/88 ending March 31,
against provisionally estimated exports of 75,000 tonnes in
1986/87 and an actual 99,254 tonnes in 1985/86, he said.
    India is likely to press for international export quotas at
a meeting of coffee producers in London this week because of
depressed prices, he added.
    The International Coffee Organisation, which represents
both consumers and producers, has so far failed to reach
agreement on quotas.
    India feels it will be useful to have quotas now because
the slide in prices is unlikely to be halted immediately, he
said.
    Export quotas were suspended in February 1986 when market
prices surged after a drought devastated Brazil's coffee crop.


.I 17246
.C
bop
.W
SWEDISH CURRENT ACCOUNT DEFICIT RISES IN JANUARY.
    STOCKHOLM, March 31 - Sweden's balance of payments on
current account showed a deficit of 500 mln crowns in January
after a shortfall of 100 mln in December, Central Bank figures
showed.
    This compared with a deficit of 1.3 billion in January
1986, the Bank said.


.I 17251
.C
zinc
.W
WORLD ZINC STOCKS FALL 7,700 TONNES IN FEBRUARY.
    EINDHOVEN, March 31 - World closing stocks of primary zinc
at smelters, excluding Eastern Bloc countries, fell 7,700
tonnes in February to 459,100 tonnes from 466,800 (revised from
449,600) in January, compared with 403,700 in February 1986,
provisional European Zinc Institute figures show.
    February closing stocks of primary zinc at European
smelters, excluding Yugoslavia, fell 4,500 tonnes to 160,000
from 164,500 (revised from 164,300) in January, compared with
126,700 in February 1986.
    Total world zinc production, excluding Eastern Bloc
countries, fell to 390,800 tonnes in February from 419,900
(revised from 419,600) in January. February 1986 production was
378,600 tonnes.
    European zinc production, including estimates for
Yugoslavia, fell to 152,900 tonnes in February from 164,200 in
January, compared with 156,400 in February 1986.


.I 17252
.C
gnp
.W
FINNISH ECONOMIC GROWTH PUT AT THREE PCT IN 1987.
    HELSINKI, March 31 - Finland's gross national product is
expected to rise by three pct in 1987 against two pct in 1986
and inflation will be unchanged at about 3.5 pct, the private
business survey office ETLA predicted.
    Unemployment in 1987 is put at 5.5 pct, in line with last
year, the office predicted in its regular review.
    The balance of payments would show a five billion markka
deficit in 1987, against a 4.2 billion deficit in 1986.


.I 17253
.C
acq
.W
SHANDWICK BUYS LOS ANGELES PR COMPANY.
    LONDON, March 31 - Public Relations consultancy <Shandwick
Plc> said it had agreed to buy the Los Angeles-based <Rogers
and Cowan Inc> which specialises in the entertainment industry.
    A total of 2.25 mln dlrs is payable on completion, 1.5 mln
will be injected into the business through an interest free
loan and the expenses of the acquisition amount to 660,000 stg.
    Shandwick said it would raise 5.1 mln stg through the
placing of 1.16 mln shares to finance the deal, with the
balance of 2.04 mln stg used to strengthen the balance sheet
and in anticipation of future performance-related payments.
    In the year to end-September Rogers' operating income was
more than 10 mln dlrs. After the acquisition Shandwick's U.S.
Operating income will be comparable to that it earns in the
U.K.
    Rogers' estimated that pretax profit in the year to
end-1987 would exceed 900,000 dlrs. An extraordinary loss of
504,000 dlrs in 1986 resulted from the write off of assets.
    Net tangible assets at end-September were 363,000 dlrs.
    Shandwick shares were unchanged at 460p.


.I 17254
.C
money-fx
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, March 31 - The Bank of England said it had invited
an early round of bill offers from the discount houses after
forecasting a very large shortage of around 1.75 billion stg in
the money market today.
 MORE

.I 17257
.C
earn
.W
HUTCHISON ANNOUNCES BONUS ISSUE OF NEW "B" SHARES.
    HONG KONG, March 31 - Hutchison Whampoa Ltd <HWHH.H>
announced a bonus issue of one new "B" share of 2.5 H.K. Cents
each for every two existing ordinary shares of 25 cents a share
par value.
    A company statement said Hutchison forecast 1987 dividends
for existing shares of not less than 32.5 cents a share and not
less than 3.25 cents for each "B" share.
    Hutchison said the new issue will help increase flexibility
when it is planning future expansion moves or making
acquisitions without affecting the existing control structure
of the group.
    "The move will provide long term stability to ensure
continuity of overall control of the Hutchison group in that it
provides Hutchison with a stable framework within which
management, development and the planned growth of the group's
businesses can take place," it added.
    Hutchison shares lost one dlr to end at 53 dlrs each today.


.I 17258
.C
cpi
.W
ITALIAN CONSUMER PRICES RISE 0.4 PCT IN MARCH.
    ROME, March 31 - Italy's consumer price index rose 0.4 pct
in March compared with February after an identical increase in
February over January, the national statistics institute Istat
said.
    The year-on-year rise in March was 4.2 pct, unchanged on
February and compared with 7.2 pct in March 1986.
    Istat said its consumer price index for the families of
workers and employees, base year 1985 equals 100, registered
109.5 in March 1987 compared with 109.1 in February this year
and 105.1 in March 1986.


.I 17259
.C
trade
.W
 EUROPE ON SIDELINES IN U.S-JAPAN MICROCHIP ROW.
    By David Ress, Reuters
    LONDON, March 31 - Rising imports of Japanese-made cars and
electronic goods may upset West European officials, but they
generally seem prepared to stay on the sidelines in the latest
trade row between the United States and Japan.
    Japan's huge trade surplus is a sore point in West Europe,
as it is in the United States. But U.S. Charges of unfair trade
practices involving computer microchips leave Europeans cold.
    The European Community ran a 18.2 billion dlr trade deficit
with Japan last year, and seeks redress when it feels Japanese
trade policy hurts Europeans, diplomats and economists said.
    But only in Britain has there been any suggestion of acting
with the U.S. To do something about Japan's huge trade surplus.
    "The EC is no more illiberal on trade issues than is the
U.S.," said Martin Wolf, director of studies at the Trade Policy
Research Centre in London. "Basically, their policies are pretty
much the same."
    But that did not mean Europe would support the U.S., Or
that the EC would climb on the bandwagon to take advantage of
the U.S. Dispute to press its own claims, Wolf said.Basically,
Europeans have a different approach to trade problems, he said.
    "In the U.S., People talk about fair trade, but not here," he
added. "In the U.S., It all has to do with the general ethic of
free competition, while in Europe, the general approach is that
liberal trade is good because it makes countries rich."
    Wolf said this basic U.S. Attitude explains Washington's
tendency to impose so-called "countervailing duties" - an import
tax designed to offset advantages alleged to be unfair.
    In Western Europe, the approach to trade disputes tends to
be to try to reach a settlement through negotiation, Wolf said.
    In the latest U.S.-Japan trade row, President Reagan has
threatened to raise tariffs on selected Japanese electronic
goods by as much as 300 mln dlrs, alleging that Japan has
failed to abide by a 1986 U.S.-Japan pact on microchip trade.
    But the European Community has challenged the agreement as
a violation of General Agreement on Tariffs and Trade (GATT)
practices that discriminates against its microchip producers.
    "It follows that they're not likely to rally to the side of
the United States in defence of the agreement," said Wolf.
    Although British parliamentarians are pushing for a tough
line on Japanese trade issues, government officials in the rest
of Europe told Reuter correspondents they would let the EC take
the lead in any response to the U.S.-Japan trade row.
    A spokeswoman for the EC Commission in Brussels told
Reuters there has been no change in the Community's position
since a March 16 meeting of foreign ministers which sent a
strong warning to Tokyo on trade imbalances.
    In a statement issued after that meeting, EC foreign
ministers deplored Japan's continued trade imbalance and
appealed for a greater Japanese effort to open up its markets.
    EC External Trade Commissioner Willy De Clercq said after
the talks there was a growing impatience with Japan in the EC.
    Diplomats accredited to the EC in Brussels said they saw no
signs of any immediate intention to impose any broad-ranging
sanctions against Japan. The EC is anxious to avoid provoking a
trade war, they said.
    Instead, the Community is trying to target problem areas in
European trade with Japan, including wines and spirits,
cosmetics, and financial services, and will continue talking to
try to improve the situation, the diplomats said.
    In Britain, where the government is angered over the
difficulties telecommunications giant Cable and Wireless has
faced in its bid to crack the Japanese market, officials said
last week that retaliatory action is being considered.
    But government officials said last night, "We are not
talking about days or weeks. This is going to take time."
    They said the government would consider its options at a
cabinet meeting on Thursday, but added that no final decisions
were expected. The main thing the British would threaten the
Japan with is denial of access to London's booming financial
markets, government officials said.


.I 17261
.C
money-fx;interest;
.W
U.K. MONEY MARKET GETS 1.14 BILLION STG EARLY HELP.
    LONDON, March 31 - The Bank of England said it had provided
the money market with 1.143 billion mln stg assistance in
response to an early round of bill offers from the discount
houses.
    Earlier, the Bank forecast the system would face a very
large deficit today of around 1.75 billion stg.
    The central bank purchased bank bills outright comprising
393 mln stg in band one at 9-7/8 pct, 649 mln stg in band two
at 9-13/16 pct and 85 mln stg in band three at 9-3/4 pct.
    In addition it bought 16 mln stg of local authority bills
in band two at 9-13/16 pct.


.I 17262
.C
acq
.W
LONDON INT'L SELLING HOT WATER BOTTLE UNIT.
    LONDON, March 31 - London International Group Plc <LONL.L>
said it had agreed to sell its <Haffenden Moulding Co Ltd> unit
to <Melton Medes Ltd> for 2.1 mln stg.
    Haffenden is a moulder of hot water bottles and also
produces a variety of rubber and plastic mouldings. The book
value of its assets is 4.4 mln stg.
    LIG said the disposal was part of its strategy of
concentrating on its core activities.
    LIG shares were one penny firmer at 277p.


.I 17263
.C
acq
.W
CABLE SHARES FIRM ON JAPAN SPECULATION.
    LONDON, March 31 - Shares in Cable and Wireless Plc
<CAWL.L> firmed in morning trading on market speculation that
its participation in a joint telecommunications venture in
Japan would not be curtailed, dealers said.
    The company's shares were quoted at 372p at 0915 GMT
compared with 364p last night.
    The dealers said the speculation appeared to originate in
Japan. Cable has said it is resisting attempts by the
Federation of Economic Organisations to merge two Japan-based
telecommunications firms, a move which would have cut Cable's
stake from 20 pct in one to three pct in the merged unit.
    However, the dealers were uncertain exactly how the dispute
over the shareholdings had been resolved.
    British prime minister MargaretThatcher said in parliament
last week that she regarded Cable and Wireless's participation
in the Japanese venture as a test case of how open the Japanese
telecommunications market really was.
    A spokesman for Cable said he was unaware if the
speculation had any foundation. Cable itself had issued no
statement today on the issue.


.I 17264
.C
money-fx;yen;
.W
BANK OF JAPAN MULLS OTHER OPTIONS TO STOP YEN RISE.
    By Kunio Inoue, Reuters
    TOKYO, March 31 - Today's liberalised financial markets are
making it extremely difficult for Japan's monetary authorities
to prevent the yen's rise against the dollar, but they have
several options other than normal intervention, Bank of Japan
sources said.
    A senior central bank official said that such methods as
controlling foreign exchange deals and invoking currency swap
agreements with other central banks, which have not been
invoked since 1978, are all being considered.
    "But the time may not be ripe," he said.
    "In this era of financial liberalisation, it's almost
impossible to control the flow of capital in and out of Japan,"
said another senior bank official.
    But the first official said: "From a technical viewpoint,
the Bank of Japan could activate swap agreements immediately
after other central banks involved agreed to do so."
    A swap agreement, an exchange of currency between two
nations, allows both sides to acquire a ready source of the
other's currency in case of need.
    "If the Bank invokes such swaps, both parties would announce
the decision jointly," said the first official.
    The sources said they believed the limit of currency market
intervention may be being reached after they saw recent
concerted market action by central banks of major industrial
nations was increasingly ineffective in propping up the
battered dollar.
    But intervention is at least an option, they said. Further
easing of monetary policy will be very difficult with an
official discount rate already at a record low of 2.5 pct, they
said.
    Bank of Japan Governor Satoshi Sumita has repeatedly ruled
out another rate cut due to fears it could revive inflation.
    One bank official said he could not deny the possibilty of
the Bank of Japan activating currency swap agreements with the
U.S. And other central banks, if these banks continue
intervening to sell the yen in support of the dollar and run
out of their yen cash positions.
    "But we don't think they have become short of yen quite yet,"
he said.
    The bank has established a five billion dlr swap limit with
the U.S. Federal Reserve and another 2.5 billion mark and 200
billion yen limit with the West German and Swiss central banks,
according to the sources.
    Foreign exchange dealers estimate the Fed had sold two
billion dlrs worth of yen from its own account to support the
dollar in New York last week.
    The central bank sources also said Japan may arrange other
currency swap agreements with Britain and France if they find
it necessary, but added they are not actually talking with each
other towards that end.


.I 17266
.C
earn
.W
AKZO REVISES 1986 PROFIT UP SLIGHTLY.
    ARNHEM, The Netherlands, March 31 - Dutch chemicals group
Akzo NV <AKZO.AS> said in its annual report it had revised its
1986 net profit figure up to 842 mln guilders from a
provisional 840 mln guilders announced in January.
    The turnover figure was unchanged at 15.62 billion
guilders.
    Akzo said it would be difficult to maintain this profit
level in 1987 but it expected positive developments "in the
longer term."
    Profits in 1985 totalled 843 mln guilders on a turnover of
18.01 billion.


.I 17269
.C
wheat;grain;
.W
U.K. WHEAT AND BARLEY EXPORTS ADJUSTED UPWARDS.
    LONDON, March 31 - The U.K. Exported 612,000 tonnes of
wheat and 498,800 tonnes of barley in February, the Home Grown
Cereals Authority (HGCA) said.
    Based on the previous provisional figures issued for
February, wheat exports were increased by 480,200 tonnes and
barley by 283,800 tonnes.
    The new figures bring cumulative wheat exports for the
period July 1-March 13 to 3.66 mln tonnes and barley to 3.50
mln, compared with 1.47 and 2.09 mln tonnes respectively last
season.


.I 17270
.C
money-fx;trade;
.W
S. KOREA MINISTER TO VISIT U.S. FOR CURRENCY TALKS.
    SEOUL, March 31 - South Korea's Finance Minister Chung
In-yong will visit U.S. Treasury Secretary James Baker next
week to discuss U.S. Requests for an appreciation of South
Korea's won against the dollar, finance ministry officials
said.
    They said Chung would leave for Washington on Monday to
attend the International Monetary Fund's (IMF) Interim
Committee meeting and for talks with U.S. Officials on ways of
reducing Seoul's trade surplus with Washington.
    The dates for the Baker-Chung meeting have yet to be set.
    The IMF committee meeting, scheduled for April 9, is
expected to review the resolution reached by the six top
industrialised nations in Paris last month calling for newly
industrialised countries, such as South Korea and Taiwan, to
allow their currencies to rise.
    The official said Chung is expected to outline Seoul's
efforts to increase imports of U.S. Goods and to stress the
need for South Korea to maintain a trade surplus in the next
few years in order to cut foreign debts totalling some 44.5
billion dlrs.
    South Korea has ruled out a major revaluation of the won,
but is allowing its currency to appreciate slowly.
    Trade Minister Rha Woong-bae told the U.S. Chamber of
Commerce earlier this month a sudden won revaluation could
result in South Korea running a large trade deficit and being
forced to renege on its international debt repayments.
    The Bank of Korea, the central bank, today fixed the won at
a two-year high of 846.90. The won has gained 5.1 pct since the
beginning of 1986.
    South Korea's trade surplus with the U.S. Rose to 7.1
billion dlrs last year from 4.3 billion in 1985.


.I 17271
.C
acq
.W
ADSTEAM TO ACQUIRE 49 PCT OF U.K. PROPERTY COMPANY.
    ADELAIDE, March 31 - The Adelaide Steamship Co Ltd <ADSA.S>
(Adsteam) said it will subscribe to 30 mln shares in listed
British property developer, <Markheath Securities Plc>, at 60p
each, subject to shareholder approval.
    The subscription, expected to take place in May, will give
Adsteam 49 pct of Markheath, Adsteam said in a statement.
    Adsteam's managing director John Spalvins will become
chairman of Markheath and two other Adsteam nominees will join
its board. "We hope that in time Markheath will become a
significant property and industrial company in the same style
as Adsteam," Spalvins said in the statement.


.I 17272
.C
earn
.W
NIPPON COLUMBIA TO MAKE BONUS STOCK ISSUES.
    TOKYO, March 31 - Nippon Columbia Co Ltd <NCOL.T> will make
a one-for-20 bonus stock issue on July 14 to pay back remaining
premiums accumulated by 4.5 mln shares issued at market price
through public placement in September 1980, a spokesman said.
    The bonus issue will bring its outstanding capital shares
to 65.02 mln from 61.92 mln as at March 31 1987. It is open to
shareholders registered on May 31.
    Nippon Columbia's share price fell 20 to 1,260 yen on the
Tokyo Stock Exchange today.


.I 17274
.C
dlr;money-fx;dmk;
.W
BUNDESBANK HAS NOT INTERVENED TODAY, DEALERS.
    FRANKFURT, March 31 - The Bundesbank declined to comment on
rumours in Tokyo that it was intervening heavily to support the
dollar, but dealers here said they had not seen the German
central bank in the market all morning.
    The dollar was quoted at around 1.8040 marks shortly after
midday in nervous but quiet trading, up from its 1.7975/85
opening.
    Spreads against the mark remained around 10 basis points,
with some banks quoting only five point spreads. Dealers said
spreads would widen and the dollar would move more sharply if
the Bundesbank did intervene.


.I 17275
.C
acq;sugar;crude;
.W
ANALYSTS APPLAUD CSR'S BOLD MOVE TO SELL DELHI.
    By Peter Bale, Reuters
    SYDNEY, March 31 - CSR Ltd <CSRA.S> has made a bold move in
selling its oil and gas interests for almost a billion dlrs and
ploughing 150 mln into its traditional sugar business, share
analysts said.
    "It sounds like a good deal," Stuart McKibbin of <A.C. Goode
and Co> told Reuters.
    CSR said it had dropped plans to float its oil and gas
interests held in the <Delhi Australia Fund> and would instead
sell it to Exxon Corp <XON> unit <Esso Exploration and
Production Australia Inc> for 985 mln dlrs.
    In a twin announcement CSR, already Australia's largest
sugar refiner, made a 2.20 dlr a share bid for the 70 pct it
does not already hold in <Pioneer Sugar Mills Ltd>.
    "This will be a big shock to the market, which was under the
impression that CSR was well down the road to floating Delhi,"
McKibbin said.
    A float of part of Delhi would have raised between 200 and
300 mln dlrs, but in opting to sell outright, CSR had given
itself the cash to practically eliminate its debt and embark on
an ambitious expansion programme in its best-performing
divisions of sugar and building products, analysts said.
    CSR not only gets the 985 mln dlrs but also has the right
to share equally with Esso any higher returns resulting from an
oil price over 20 U.S. Dlrs a barrel in the next two years.
    Delhi is one of Australia's largest onshore oil producers
yielding about six mln barrels a year from the Cooper Basin.
Analysts said the deal could net CSR as much as three mln dlrs
for every dollar rise in the oil price above 20 dlrs.
    Neale Goldston-Morris of Sydney broker <Bain and Co Ltd>
said the move out of Delhi and investment in the sugar industry
was a sensible one but added that it represented the loss of
Australian-owned assets to a foreign company.
    "The farm they bought back a few years ago is being sold
back to the Americans," Goldston-Morris said.
    The Pioneer Sugar investment would make CSR by far the
largest player in Australia's 850 mln dlr a year sugar industry
and would give it access to some of the best sugar properties
and mills in the country, analysts said.
    They said Pioneer Sugar was expected to recommend
acceptance of the bid through which CSR would benefit from the
bottom out of a cyclical downturn in sugar prices.
    Sugar prices are forecast to rise to 340 dlrs a tonne next
season from an estimated 270 dlrs this year, they said.
    Selling Delhi meant CSR has finally quit a damaging
investment, made in 1981, which has dragged down the company's
overall performance, analysts said.
    CSR last year wrote off more than 550 mln dlrs in losses on
what had been a 591 mln U.S. Dlr investment financed entirely
from U.S. Dollar debt, they said.
    "It was a bad investment for them. They financed it entirely
with debt, the currency collapsed on them and then the oil
price collapsed on them," Owen Evans of Sydney broker <Meares
and Philips Ltd> said.
    Esso not only picked up Delhi's oil and gas output but also
gained as much as 300 mln dlrs in transferable tax losses
accumulated in exploration allowances and other concessions.
    Analysts said Esso also gained its first real onshore stake
in Australia in its first major diversification from the 50/50
Bass Strait partnership with The Broken Hill Pty Co Ltd
<BRKN.S>.
    "Esso has been very keen to diversify from the Gippsland
Basin. They haven't found too much oil in Bass Strait lately
and Esso needed a large pool of ongoing production,"
Goldston-Morris said.


.I 17278
.C
grain;rice;
.W
DROUGHT THREAT EASES IN SOUTH CHINA PROVINCE.
    PEKING, March 31 - Rainfall in the past few days has eased
the threat of drought in the south China province of Guangdong,
the New China News Agency said.
    It said 75 pct of early rice fields are ready to be planted
and seedlings have already been transplanted on 90 pct of rice
fields in Hainan island. Some 840,000 hectares of farmland have
been planted with cash crops including sugar cane, peanuts and
soybeans, 67,000 ha more than in 1986.
    The provincial government has increased investment in grain
and taken effective measures to combat natural disasters this
year, the agency said, but gave no further details.


.I 17282
.C
earn
.W
KLEINWORT BENSON LONSDALE PLC <KBLL.L> YEAR 1986.
    LONDON, March 31 -
    Shr 53.05p vs 45.79p adjusted
    Div 8.7p making 14p vs 12p adjusted
    Pretax profit 78.84 mln stg vs 60.31 mln
    Net after tax 50.71 mln vs 40.54 mln
    Extraordinary credit after tax 43.19 mln vs nil
    Note - The extraordinary credit represents substantitally
the after tax profit on sale of company's interest in M and G
Group Plc. After providing for the final dividend, retained
earnings were 80.07 mln vs 29.90 mln in 1985.
    Merchant and investment banking 81.47 mln vs 63.22 mln
    Bullion broking 4.75 mln vs 3.02 mln
    U.S. Government security dealing 2.94 mln vs loss 329,000
    Investment management and unit trusts 10.62 mln vs 7.88 mln
    Other activities loss 3.12 mln vs profit 1.42  mln
    Interest on loan capital 17.82 mln vs 14.90 mln.
    Disclosed shareholders funds 365 mln vs 286 mln
    Disclosed capital resources available 626 mln vs 467 mln.


.I 17283
.C
earn
.W
<CGEE ALSTHOM> YEAR TO END-DECEMBER 1986.
    PARIS, March 31 -
    Dividend 24 francs vs 30
    Consolidated net profit 115.7 mln francs vs 108.3 mln of
which attributable to group 110.8 mln vs 102.5 mln
    Consolidated net turnover 11.16 billion francs vs 11.42
billion
    Parent company net profit 115.5 mln vs 95.0 mln
    Parent co net turnover 9.99 billion vs 9.91 billion
    Note - The electrical contracting company is 99.9 pct owned
by the state-run Compagnie Generale d'Electricite <CGE>.


.I 17284
.C
trade
.W
THATCHER SAYS TRADE TARGETS SET WITH MOSCOW.
    MOSCOW, March 31 - British Prime Minister Margaret Thatcher
said she and Soviet Premier Nikolai Ryzhkov had set targets for
increased trade between the two countries during talks earlier
today.
    She said she hoped more economic exchanges between Britain
and the Soviet Union "will also lead to increased friendship and
increased understanding."
    Earlier, she told a meeting of Soviet and British
businessmen that she had agreed with Ryzhkov that they would
work to achieve a total volume of 2.5 billion roubles in
bilateral trade by 1990.
    This would entail an increase by each side of 350 to 400
mln stg over their present export levels.
    "Mr Ryzhkov handed me a list of import and export
opportunities which I hope you will all jump at," she told the
meeting to mark the opening of new offices of the British-
Soviet Chamber of Commerce.
    After her talks with Ryzhkov, Thatcher and the Soviet
Premier were joined for the signing of agreements covering new
scientific and cultural exchanges by Kremlin leader Mikhail
Gorbachev, who had nine hours of talks with her yesterday.


.I 17286
.C
rubber;tin;cocoa;wheat;grain;coffee;sugar;
.W
COMMODITY PACTS MORE ORIENTED TOWARDS MARKET.
    LONDON, March 31 - Consuming countries, chastened by the
collapse of International Tin Council (ITC) price support
operations in 1985, are insisting more than ever before that
commodity pacts reflect the reality of the markets they are
serving, a Reuter survey showed.
    They want price ranges to be more responsive to market
trends - to avoid overstimulating output and straining the
accords' support operations - and intervention rules that avoid
the risk of exports by non-members undermining the pacts.
Consumers and producers, mindful of ITC buffer stock losses,
have also sought strict conditions for buffer operations.
    Importers and some key exporting countries have shunned a
generalised approach to commodity price stabilisation and
prefer to assess each commodity case by case, the survey
showed.
    The International Cocoa Organization (ICCO) last week set
precise limits on what the Buffer Stock Manager (BSM) could do
under the new agreement. It imposed daily and weekly purchase
limits, prohibited the BSM from operating on futures markets
and stipulated, after consumer insistence, that up to 15 pct of
total buffer stock purchases could be of non-member cocoa. This
will help prevent lower quality cocoa from Malaysia, the
world's fourth largest producer, undermining the market.
    The cocoa pact establishes precise differentials the Buffer
Stock Manager must use when purchasing varying grades.
    A new International Natural Rubber Agreement (INRA) was
adopted earlier this month in Geneva. Importing and exporting
countries agreed several changes to make the reference price
more responsive to market trends and they eliminated provisions
under which the buffer stock could borrow from banks to finance
operations. Direct cash contributions from members will fund
buffer stock purchases. Bank financing was a particular feature
of the failed ITC buffer stock which suffered losses running
into hundreds of millions of sterling. Legal wrangles continue.
    Recent International Coffee Organization (ICO) negotiations
in London exemplified the degree to which consumers insist that
agreements reflect market reality, commodity analysts said.
    Consumers and a small group of producers argued that
"objective criteria" should be used to define export quota
shares, which would have meant a reduction in the share of
Brazil, the world's leading producer. Brazil wanted to maintain
its previous quota share of 30 pct. The talks broke down and,
although an ICO executive board meeting starts in London today,
delegates and trade sources see chances of any near term
negotiations on export quota distribution as remote.
    International agreements exist for sugar and wheat. These
do not have any economic clauses but provide a forum for
discussions on possible future economic agreements, collect
statistics and draw up market analyses. Analysts said
differences between sugar exporting countries have held up any
progress towards an accord with economic teeth, while sheer
competition between major exporters amid a world grain glut
militate against any pact with economic provisions for wheat.
    An alternative focus for commodity discussions are
international study groups, made up of governments with advice
from industry, such as those for lead and zinc and rubber.
    The U.N. Common fund for commodities, with a planned
directly contributed capital of 470 mln dlrs, has failed to
become operational because neither the U.S. Nor the Soviet
Union has ratified it. U.S. Officials in Washington said the
U.S. Doubts the fund would be able to fulfil its objectives,
citing the lack of widespread support.
    U.S. Officials in Washington and Malaysian officials in
Kuala Lumpur expressed a policy of looking at each commodity
pact case by case. U.S. Officials said it has been willing to
study individual cases for economically sound, market-oriented
commodity accords balancing producer and consumer interests.
    "We see little to be gained by attempting to increase the
price of a commodity whose long-term trend is downward,"
official Administration policy states. The U.S. Currently
belongs to only two international commodity agreements that
have economic clauses - the International Coffee Agreement
(ICA) and INRA - but it is also a member of the sugar and wheat
pacts.
    The U.S. Did not join the International Cocoa Agreement
because it considered its proposed price ranges unrealistic and
not designed to protect the interests of consuming countries,
the State Department said. U.S. Officials singled out the INRA
as the one commodity agreement that seems to be working.
    U.S. Negotiators were successful in getting other members
of the pact to agree that the price review and adjustment
mechanism of the rubber agreement would accurately reflect
market trends and also to continue the accord as a market
oriented agreement, U.S. Officials said.
    Canadian officials in Ottawa also said they have
consistently tried to look at membership of commodity pacts on
the merits of each case. Malaysian Primary Industries Minister
Lim Keng Yaik told Reuters in Kuala Lumpur his country, the
world's top producer of rubber, tin and palm oil, decides its
participation in international commodity pacts case by case.
    Malaysia is a member of the Association of Tin Producing
Countries (ATPC) which produce 65 pct of world tin. The ATPC
launched a plan to limit member tin exports to 96,000 tonnes
for a year from March to cut the tin surplus to 50,000 from
70,000.
    Economist in the West German Ministry of Agriculture and
delegate to cocoa, wheat and sugar agreements Peter Baron told
Reuters in London, "Agreements with economic clauses to
stabilise prices could function if fixed price ranges were
close to market reality, if there was full participation by
producers and consumers, and if participants were prepared to
take their obligations in the framework of the agreement
seriously."
    But Baron added, "No real sanctions are available for a
country that doesn't stick to its obligations...The German
approach is sceptical. We don't think agreements are the best
instrument to help developing countries. They were never meant
to be a vehicle for the transfer of resources and that is how
developing countries often interpret them."
    Traditionally Britain has always been supportive of
commodity agreements, reflecting its strong links with Third
World producing countries. But recently demands for more
stringent and justifiable pacts with emphasis placed on the
need for "intellectual honesty" and "objective criteria" have
grown.
    British officials stress the need for commodity pacts to be
a two way partnership in trade rather than a disguise for aid.
    It is now seen as essential that any pacts involving direct
market participation through a buffer stock have a high degree
of transparency and do not contain the risk of open-ended
borrowing that occurred in the tin pact, they said. U.K.
Delegates talk of stabilisation and the need for prices to
reflect changes in market structure and price trends rather
than dictate what prices should be.
    A Foreign Ministry official in Tokyo said Japan urges price
realism in commodity pacts, adding high prices inflate supply.
    A government spokesman in Paris said France is favourable
to commodity pacts. France, a large consumer and producer of
sugar, favours a sugar pact as long as it reflects the real
market situation, particularly regarding stocks.
    Indonesia's Foreign Minister Mochtar Kusumaatmadja told
Reuters in Jakarta: "These agreements can work as long as the
problems are cyclical..But it's another matter when there are
structural problems..But we are still committed to commodity
agreements as an act of faith." Nicaraguan External Trade
Minister Alejandro Martinez Cuenca said in London producers
cannot afford not to give their backing to commodity
agreements.
    "The political will is not there on the part of some
consumers to make agreements work," Martinez Cuenca said.
    The head of the economics department in the Brazilian
Foreign Ministry, Sebastiao do Rego Barros, told Reuters an
agreement can be successful if it keeps a link with market
reality. If you have an agreement such as coffee with a system
of quotas, with a link between prices practised inside the pact
and actual market prices, it can work. UNCTAD spokesman Graham
Shanley said consuming countries realise steady export earnings
enhance developing countries' ability to service debt and mean
greater demand for industrialised nations' capital goods.


.I 17287
.C
trade
.W
JAPAN TO CUT MICROCHIP OUTPUT, BOOST IMPORTS.
    By Steven Brull, Reuters
    TOKYO, March 31 - Leading domestic semiconductor makers
will boost imports and cut production of key memory microchips
from next month in line with government attempts to ward off
U.S. Trade sanctions, company spokesmen said.
    The moves might persuade the U.S. To call off the
sanctions, despite obstacles to full implementation of the
plans, analysts said.
    The tariffs will affect about 300 mln dlrs worth of
products and are in retaliation for Japan's alleged failure to
honour a semiconductor trade pact.
    In announcing the sanctions last Friday, President Reagan
said Japan had not fulfilled its promise to halt predatory
pricing and open Japan's market to foreign products.
    But U.S. Trade representative Clayton Yeutter said
yesterday on U.S. Television that the U.S. Is willing to drop
the tariffs if Japan shows a "clear indication" that it will open
its markets to U.S. Goods.
    The Ministry of International Trade and Industry (MITI) has
urged producers to slash output of the chips by 11 pct in the
second quarter, following a call to reduce production by more
than 20 pct the previous quarter.
    MITI also urged makers to boost chip imports.
    Analysts said the moves could encourage Washington to
cancel the tariffs ahead of next month's meeting between Prime
Minister Yasuhiro Nakasone and President Reagan.
    "The U.S. Wants to be satisfied. It has rattled its sword
and shown that it can and will do business," said analyst Nick
Edwards at Jardine Fleming Securities Ltd in Tokyo.
    But analysts cautioned that although Japanese producers can
cut output, boosting imports -- the key to U.S. Withdrawal of
the sanctions -- is more difficult.
    "The U.S. Does not have the low-end consumer IC's
(integrated circuits) that the Japanese need for consumer
products. They're well supplied here," said Richard May, senior
analyst at Barclays de Zoete Wedd Ltd in Tokyo.
    The U.S. Leads in production of medium and high-end IC's,
but Japanese makers are keen to develop their own high-end
production skills, the analysts said.
    "The Japanese must be prepared to trade some losses on
semiconductors in return for free access to other areas," said
Edwards.
    A spokesman for Hitachi Ltd <HIT.T>, said the firm's
reduced output of 256 kilobit dynamic random access memory
(256K DRAM) was unrelated to MITI's efforts to ward off the
trade sanctions. Decreased production was a natural result of
the company increasing output of one-mln bit DRAM's, he said.
    Company officials unveiled the following plans -
    - NEC Corp <NESI.T>, Japan's largest chipmaker, plans to
slash production of 256K DRAM semiconductors by 29.41 pct to
six mln per month from a monthly average of 8.5 mln last
quarter.
     In the year beginning April 1, NEC will boost chip
imports, which comprised some 20 pct of all NEC chip
consumption the year before.
    - Hitachi Ltd's <HIT.T> April output of 256K DRAM's will
fall by 25.93 pct to four mln compared to 5.4 mln in March. The
company is trying to boost imports but has not set a specific
target. Imports are currently very low.
    - Toshiba Corp <TSBA.T> will reduce April 256K DRAM
production by 16.67 pct to just over four mln and is
considering ways to boost imports, a company official said.
    Toshiba has an agreement with Motorola Inc (MOT.N) to sell
the U.S. Firm's chips in Japan. The firms are planning a
joint-venture production of memory chips in Sendai, northern
Japan.
    - Mitsubishi Electric Corp (MIET.T) will trim second
quarter output by about 10 pct to between 5.5 mln to 5.6 mln
chips compared to the first quarter. Plans call for increased
imports but an official said "boosting imports will be difficult
as it depends on sales demand."
    - Fujitsu Ltd (ITSU.T) will cut production in accord with
MITI guidelines and boost imports from currently low levels.
    - Oki Electric Industry Co Ltd (OKIE.T) will reduce April
production by 10 pct from March's 3.2 mln. Oki is studying ways
to increase imports by 10 pct in the fiscal year beginning
April 1 from the previous year's total of more than five
billion yen, a company official said.


.I 17289
.C
earn
.W
LONDON AND SCOTTISH MARINE OIL PLC <LASL.L>.
    LONDON, March 31 - Year 1986
    Div 7.0p vs 12.2p
    Shr 9.6p vs 31.3p
    Pretax profit 4.4 mln stg vs 118.0 mln
    Net 17.6 mln vs 37.7 mln
    Total turnover 183.8 mln vs 348.0
    Amortisation 71.4 mln vs 86.3
    Traded oil purchases 41.2 mln vs 44.5 mln Administration
expenses 6.2 mln vs 8.0 mln
    Net interest payable 6.4 mln vs 4.8 mln
    Related company's credit 6.1 mln vs nil


.I 17290
.C
money-fx
.W
UK MONEY MARKET GIVEN FURTHER 570 MLN STG HELP.
    LONDON, March 31 - The Bank of England said it provided the
market with a further 570 mln stg assistance during the morning
after revising its estimate of the liquidity shortage to 1.85
billion stg, before taking account of its early round of bill
purchases.
    Initially, the Bank put the likely shortage at some 1.75
billion and to help offset this gave early assistance of 1.143
billion.
    Its total help so far today amounts to 1.713 billion stg.
 MORE

.I 17291
.C
trade
.W
(CORRECTION) - MARCH 30 - YUGOSLAV TRADE FALLS.
    In Belgrade item  of yesterday "Yugoslav trade falls in 1st
qtr on year ago" please read on page one "This year current
exchange rates were used for the first time instead of a fixed
rate of 264.53 dinars to the dollar."
    (corrects from 24.53).


.I 17292
.C
sugar
.W
MAURITIAN SUGAR EXPORTS FALL IN FEBRUARY.
    LONDON, March 31 - Mauritius exported 47,144 tonnes of
sugar (tel quel) in February, down from 57,911 tonnes (tel
quel) shipped in January and 89,351 in February 1986, the
Mauritius Chamber of Agriculture's Sugar News Bulletin said.
    Opening stocks at the beginning of last month totalled
320,057 tonnes, against 288,406 tonnes at the start of February
last year. Closing stocks at the end of February were 270,212
tonnes, up from 196,309 tonnes at end-February 1986.
    The estimate for 1986 sugar production was unchanged from
last month at 748,472 tonnes, raw value, the Chamber said.


.I 17293
.C
sugar;crude;nat-gas;
.W
CSR SELLS OIL/GAS INTERESTS, BIDS TO EXTEND SUGAR.
    SYDNEY, March 31 - CSR Ltd has made a bold move in selling
its oil and gas interests for almost a billion dlrs and
ploughing 150 mln into its traditional sugar business, share
analysts said.
    CSR said it had dropped plans to float its oil and gas
interests held in the Delhi Australia Fund and would instead
sell them to Exxon Corp unit Esso Exploration and Production
Australia Inc for 985 mln dlrs.
    In a twin announcement CSR, already Australia's largest
sugar refiner, made a 2.20 dlr a share bid for the 70 pct it
does not already hold in Pioneer Sugar Mills Ltd.
    A float of part of Delhi would have raised between 200 and
300 mln dlrs, but in opting to sell outright CSR had given
itself the cash to all but eliminate its debt and embark on an
ambitious expansion programme in its best-performing divisions
of sugar and building products, analysts said.
    The Pioneer Sugar investment would give CSR by far the
largest stake in Australia's 850 mln dlr a year sugar industry
and access to some of the best sugar properties and mills in
the country, they said. Pioneer Sugar was expected to recommend
acceptance of the bid, through which CSR would benefit from the
bottoming out of a cyclical downturn in sugar prices.


.I 17294
.C
earn
.W
LASMO SET TO BENEFIT FROM FUTURE OIL PRICE RISES.
    LONDON, March 31 - London and Scottish Marine Oil Plc
(Lasmo) <LASL.L> will have an advantage when oil prices rise
again and it is confident this will happen early in the next
decade, the company said in a statement accompanying results.
    Lasmo said its advantage comes from its reserves of oil and
gas which at the end of 1986 stood at 210 mln barrels of oil
equivalent, a group record. Reserves have increased every year
since 1983 at a compounded rate of 10 pct a year.
    The company reported a 1986 pretax profit of 4.4 mln stg,
down from 118 mln in 1985.
    It said falling oil prices caused the downturn.
    The company said it reacted swiftly to the sharp drop in
oil prices which began over a year ago. Capital expenditure,
which had been budgeted at over 150 mln stg, was cut to 51 mln
stg net of disposals. Managers responded well to the demand for
lower operating costs and this has been achieved worldwide.
    The company said had very few exploration wells committed
for 1987 and therefore retains maximum flexibility in its
exploration program. Even without further success, the existing
fields and recent discoveries will contribute significantly to
profit and cash flow for some years to come, it said.
    Lasmo shares were down 2p at 251 after the announcement.


.I 17295
.C
oilseed
.W
CHINA BUYS MALAYSIAN RBD PALM STEARINE.
    LONDON, March 31 - China bought 6,000 tonnes of Malaysian
refined bleached deodorised palm stearine today for May
shipment at prices equivalent to around 270 to 275 dlrs per
tonne fob, traders said.


.I 17296
.C
money-fx
.W
CALL MONEY PRESSURE FROM LARGE GERMAN BANKS.
    By Allan Saunderson, Reuters
    FRANKFURT, March 31 - One or two large West German banks
effectively drained the domestic money market of liquidity at
the end of the month in order to achieve higher rates from
their overnight deposits, money dealers said.
    As a result, call money soared in active trading to around
the Lombard rate of five pct from 3.70/80 pct yesterday as
banks found themselves short of minimum reserve funds.
    Bundesbank figures showed that banks held an average daily
51 billion marks in interest-free minimum reserve assets at the
central bank over the first 29 days of the month.
    Though this was above the March requirement of 50.7
billion, actual holdings at the weekend were 44.2 billion.
    To meet the daily average, dealers said, banks must raise
holdings by two billion marks to 46.3 billion today and
tomorrow. But liquidity was tight in early business because
banks excessively took up the Bundesbank's offer for sale of
Treasury bills on Friday. This provides a rate of 3.50 pct for
three-day deposits and is an effective floor to the market.
    Though some liquidity, from bills bought on Thursday,
flowed back into the market today, the bulk would not return
until tomorrow, the start of the new month, dealers said.
    Dealers said the large banks, which they did not name,
commanded short-term money requirements of as much as five
billion marks or so.
    With a knowledge of their own needs until the end of the
month, the banks bought excessive amounts of treasury bills,
draining liquidity for three days. When other banks sought
funds, rates rose and large banks were able to place excess
funds on deposit at a considerably higher average return.
    One senior dealer said the Bundesbank, with advanced
knowledge of the market's needs, should have curtailed its
sales of treasury bills on Friday.
    Though dealers only late in the day learn of the total
minimum reserve holdings of the previous day, the Bundesbank
has an immediate overview of the situation and could anticipate
the strength of demand for funds the following day, he said.
    "(Bundesbank dealers) could easily have said we are not
selling any treasury bills or we're not selling them in this
amount," he said. "If the Bundesbank wants to finely steer the
market then they should avoid such excesses. Tomorrow it will
be different. Call money will fall back to 4.0 pct or so."
    But the Bundesbank would not approve of the sharp jump in
rates, given the delicate state of currency markets.
    International central banks have been at pains to prevent a
dollar fall against major currencies, including the mark.
Dealers said a rise in call money gives the mark a firmer
undertone, contributing to downward pressure on the dollar.
    "The whole tender policy is to have a call money of between
three and four pct. In that case the excesses as we have today
cannot be very popular," the senior dealer said.
    Dealers said the large banks probably achieved average
rates of return on their excess funds of between 3.75 pct or
four pct. This is a higher return than they would have earned
without the excessive draining through the treasury bill
mechanism.
    Because of the currency situation and the wage negotiations
between Germany's major employers and the unions, the
Bundesbank would be very unlikely to make any changes to
monetary policy at its council meeting on Thursday, they said.
    Bundesbank figures showed that banks fell back on the
Lombard emergency funding facility to draw down 1.5 billion
marks yesterday as rates began to tighten in late business.


.I 17298
.C
acq
.W
CSR SELLING DELHI TO EXXON UNIT, DROPS DELHI FLOAT.
    SYDNEY, March 31 - CSR Ltd <CSRA.S> and Exxon Corp <XON>
unit <Esso Exploration and Production Australia Inc> said CSR
has agreed to sell its <Delhi Australia Fund> (DAF) to Esso for
985 mln Australian dlrs.
    The sale is effective from tomorrow, they said in a joint
statement.
    The previously announced float of part of its Delhi
interest will not now proceed, CSR said in the statement.
    Delhi Australia Fund owns <Delhi Petroleum Pty Ltd>, which
holds an average of 25 pct in the Santos Ltd <STOS.S>-led
Cooper and Eromanga Basin gas and liquids projects.
    In addition to the purchase price, CSR will share equally
in any returns due to increases in crude oil and condensate
prices over certain levels for liquids produced from Delhi's
interests in the next two years, the statement said.
    "The Esso proposal to purchase all the Delhi interest will
be more beneficial to our shareholders than proceeding with the
float," CSR chief executive Bryan Kelman said in the statement.
    Kelman said the sale of Delhi would enable CSR to focus
efforts on expanding business areas such as sugar and building
materials in which CSR has had long and successful management
experience and strong market leadership.
    With the sale, CSR will be able to expand those businesses
more aggressively and earlier, he said.
    As reported separately, soon after announcing the Delhi
sale CSR launched a takeover bid for the 68.26 pct of <Pioneer
Sugar Mills Ltd> that it does not already hold, valuing its
entire issued capital at 219.6 mln dlrs.


.I 17299
.C
acq
.W
CSR BIDS 2.20 DLRS A SHARE FOR PIONEER SUGAR MILLS.
    SYDNEY, March 31 - CSR Ltd <CSRA.S> said it will offer 2.20
dlrs cash each for the shares it does not already hold in
<Pioneer Sugar Mills Ltd>.
    CSR already holds 31.74 pct of Pioneer's 99.80 mln issued
shares, it said in a statement.
    The offer price values the entire Pioneer Sugar share
capital at 219.6 mln dlrs and compares with today's closing
market level of 1.85 dlrs a share.
    CSR said it will announce further details of the offer
soon, including an alternative offer of CSR shares for Pioneer
Sugar stock.
    It said the offer is generous since it will give Pioneer
Sugar shareholders a price equivalent to 29 times Pioneer's net
earnings last financial year and a premium of 22 pct over
yesterday's market price which CSR said it believed already
contained an element of takeover speculation.
    It also gives a premium of 91 pct over Pioneer's last
reported net tangible assets per share, CSR said.
    CSR said the generous offer price reflects the cost savings
which will flow from integrated management of CSR's and
Pioneer's raw sugar mills and building materials businesses.
    These economies can only be achieved through CSR control
and management of Pioneer Sugar, it added.
    The takeover announcement came soon after CSR's earlier
reported statement that it will sell its <Delhi Petroleum Pty
Ltd> unit to an Exxon Corp <XON> unit for 985 mln dlrs and not
proceed with the previously announced float of part of Delhi.


.I 17300
.C
money-fx;interest;
.W
BUNDESBANK HAS NOT INTERVENED TODAY, DEALERS.
    FRANKFURT, March 31 - The Bundesbank declined to comment on
rumours in Tokyo that it was intervening heavily to support the
dollar, but dealers here said they had not seen the German
central bank in the market all morning.
    The dollar was quoted at around 1.8040 marks shortly after
midday in nervous but quiet trading, up from its 1.7975/85
opening.
    Spreads against the mark remained around 10 basis points,
with some banks quoting only five point spreads. Dealers said
spreads would widen and the dollar would move more sharply if
the Bundesbank did intervene.


.I 17301
.C
acq
.W
FLETCHER CHALLENGE DISAPPOINTED AT NZ FOREST MOVES.
    WELLINGTON, March 31 - <Fletcher Challenge Ltd> (FCL)
Managing Director Hugh Fletcher said he was disappointed that
<Rada Corp Ltd> had decided to sell its shares in <N.Z. Forest
Products Ltd> (NZFP) to Australia's <Amcor Ltd>.
    He said in a statement that FCL had made an offer for the
24 pct of NZFP held by Rada. He said the FCL offer was better
than Amcor's because it would have been made to all NZFP
shareholders, but he gave no further details.
    Amcor and NZFP said earlier today they were merging their
pulp and paper interests in a joint partnership and were
increasing their existing cross-shareholdings.
    The plan involves NZFP increasing its current holding in
Amcor to about 20 pct from four pct. Amcor will acquire Rada's
NZFP stake to add to its existing 11 pct and will seek
statutory approval to increase its holding to 50 pct.
    Rada bought its stake for 505.5 mln dlrs from <Wattie
Industries Ltd> last year, but it has not disclosed the price
to be paid by Amcor.
    FCL originally launched a takeover bid for NZFP late last
year with a scrip and/or cash offer at 3.90 dlrs a share,
valuing the company at 1.3 billion dlrs. NZFP shares ended at
3.88 dlrs today.


.I 17303
.C
earn
.W
SUMITOMO CHEMICAL CO LTD <SUCH.T> YEAR TO DEC 31.
    OSAKA, March 31 -
    Group shr 4.91 yen vs 6.59
    Net 7.72 billion vs 10.38 billion
    Current 16.81 billion vs 20.84 billion
    Operating 45.56 billion vs 52.02 billion
    Sales 734.50 billion vs 996.15 billion
    NOTE - Company forecast for current year is group net 14
billion, current 30 billion and sales 740 billion based on
rationalisation efforts and expected market price increases in
agricultural chemicals and petrochemical products following the
recovery in world oil prices.


.I 17304
.C
acq
.W
CHINA'S CITIC BUYS H.K. HOTEL FROM CHEUNG KONG.
    HONG KONG, March 31 - The Peking-owned China International
Trust and Investment Corp (Citic) bought the unfinished City
Garden Hotel in Hong Kong from a subsidiary of Cheung Kong
(Holdings) Ltd <CKGH.HKG> for 235 mln H.K. Dlrs, Cheung Kong
director Albert Chow said.
    Cheung Kong's subsidiary <International City Holdings Ltd>
will complete work on the hotel by the end of 1988, when it
will be handed over to Citic. The deal does not include the
decoration or fitting out of the interior of the hotel.
    The 600-room hotel stands on a 26,700 sq ft site on the
eastern side of Hong Kong island.


.I 17305
.C
earn
.W
MANNESMANN SEES DIFFICULT YEAR FOR CAPITAL GOODS.
    HANOVER, March 31 - Mannesmann AG <MMWG.F> expects a
difficult year for the capital goods industry in 1987, chief
executive Werner Dieter told a news conference.
    Dieter said West German producers would see a downturn in
foreign business because of lower energy prices and the higher
mark, as well as a deterioration of the economies of customer
nations.
    Domestic business was also declining and orders for West
German engineering goods have been falling since July 1986,
Dieter said.
    Mannesmann's profit fell by an undisclosed amount in 1986.
    Dieter said Mannesmann's pipe activities would suffer a
set- back, although measures to cut costs, which were started
last year, were now having an effect.
    Dieter noted, however, that pipes and related products
accounted for less than 30 pct of Mannesmann's turnover. The
company saw good chances in the automation sector, which Dieter
said had become one of Mannesmann's "strategic aims."
    He said the company's drive to combine activities in
mechanical and electronic engineering was a particular "plus
point" for Mannesmann.
    Mannesmann, which yesterday announced it had agreed to take
a majority stake in the Fichtel und Sachs AG car parts group
for an undisclosed sum, saw third party group turnover fall
nine pct in 1986 to 16.60 billion marks. Its world group net
profit in 1985 was 255.9 mln marks.
    It has blamed the fall in 1986 profits on the weaker dollar
and lack of demand for steel pipe.
    Dieter said there were signs that prices for steel pipe
were bottoming out and would slowly start to rise, but he added
the company would continue to cut personnel in this sector this
year.


.I 17306
.C
money-fx;interest;
.W
BANK OF JAPAN TO SELL 800 BILLION YEN IN BILLS.
    TOKYO, March 31 - The Bank of Japan will sell tomorrow a
total of 800 billion yen worth of financing bills from its
holdings to help absorb a projected money market surplus of
1,700 billion yen, money traders said.
    Of the total, 300 billion yen will yield 3.8992 pct on
sales from money houses to banks and securities houses in a
23-day repurchase accord maturing on April 24.
    The remaining 500 billion yen will yield 3.8990 pct in a
31-day repurchase pact maturing on May 2, they said.
    The repurchase agreement yields compare with the 3.8750 pct
one-month commercial bill discount rate today and the 4.28/11
pct rate on one-month certificates of deposit.
    Tomorrow's surplus is attributable to excess bank holdings
from sales of yen to buy dollars and to huge cash amounts to be
redeposited at banks after the current financial year-end
today, the traders said.
    The operation will put the outstanding bill supply at about
3,200 billion yen.


.I 17311
.C
earn
.W
 BRITISH CALEDONIAN GROUP ANNOUNCES BIG LOSSES.
    LONDON, March 31 - <British Caledonian Group>, Britain's
second largest airline, has announced a 19.3 mln stg pretax
loss for the financial year ending last October, compared with
a record pre-tax profit of 21.7 mln stg in 1985, chairman Sir
Adam Thomson told reporters.
    A decline in U.S. Transatlantic traffic following terrorist
attacks in Europe, the U.S. Bombing of the Libya, the Chernobyl
disaster and a slump in the oil industry which affected Middle
East traffic were the main causes of the loss, Thomson said.
    He said the poor results were caused by "a range of
exceptional circumstances wholly outside our direct control" and
predicted a return to profitability this year.
    Last year, the airline was forced to axe 1,000 jobs, sell
some of its assets and cut the number of its flights across the
Atlantic and to the Middle East following the fall in business
.


.I 17313
.C
ship
.W
HAPAG ORDERS NEW CONTAINER SHIP FROM CHINA.
    HAMBURG, March 31 - <Hapag Lloyd AG> said it ordered a new
container vessel from China for its Australia service.
    The order was given to the <Hudong shipyards> in Shanghai
after lengthy negotiations with West German shipbuilders, the
company said in a statement.
    The Chinese firm offered to build the vessel at over 30 mln
marks less than West German yards, despite government subsidies
which Bonn pays its ailing shipbuilding industry, Hapag said. A
company spokesman would not comment on the total order value
but said the new vessel would replace the 33,333 dwt Sydney
Express in 1989 and would carry 2,700 container units.


.I 17314
.C
acq
.W
FRENCH CGE UNIT TAKES 34 PCT STAKE IN ESCA CORP.
    PARIS, March 31 - State-owned <Cie Generale
d'Electricite>'s electrical contracting unit <CGEE ALSTHOM> has
taken a 34 stake in the U.S. Computer firm <ESCA Corp>, CGEE
ALSTHOM chairman Philippe Boisseau told a press conference.
    According to an agreement in principle between the two
companies CGEE ALSTHOM could take a majority stake in the
future but no time-scale has been set, he added.
    ESCA, which had a turnover of 13.6 mln dlrs in 1986 and is
expected to see this rise to 20 mln this year, is one of the
leading U.S. Suppliers of electric despatching and telecontrol
systems.


.I 17315
.C
acq
.W
PARTNERS CALL GENCORP <GY> RESPONSE UNPRODUCTIVE.
    NEW YORK, March 31 - General Acquisition Co said it was
disappointed by Gencorp's response to its tender offer and
asked how the company might give better value to shareholders.
    Gencorp had earlier urged shareholders to reject a 100 dlr
per share tender offer from General Acquisition, an affiliate
of Wagner and Brown and AFG Industries Inc, and said it was
studying financially superior alternatives.
    The General Acquisition partnership called the response
inflammatory and unproductive, particularly since it had tried
to discuss the offer with Gencorp.
    The partnership said Gencorp failed to say how it would
provide a "superior value yet they continue their attempt to
prevent a satisfactory offer by failing to redeem their poison
pill." Poison pills are shareholder rights plans that make
takeovers more expensive.
    Gencorp said in its statement earlier that it planned to
put off the date its rights will trade separately from the
common stock to April 6 from April 3. It said the extension was
subject to further extensions by the board and is conditional
on no person acquiring beneficial ownership of 20 pct or more
of Gencorp before April 6.
    General Acquisition said it is confident its offer can be
completed in a timely manner using its financial arrangements.
    The partnership in its statement again urged Gencorp
management to work with it to facilitate a transaction.


.I 17316
.C
dlr;yen;trade;
.W
U.S. MAY DROP TARIFFS IF JAPAN OPENS - YEUTTER.
    NEW YORK, March 31 - The U.S. Is willing to drop tariffs on
Japanese electronic imports if Japan shows it will abide by an
agreemement opening its markets to American goods, U.S. Trade
Representative Clayton Yeutter said in a TV interview.
    "But there has to be a clear indication that they are
willing to act," he said.
    Yeutter said difficulties in the Japanese economy caused by
the U.S. Tariffs and the yen's rise against the dollar are
problems "they have brought on themselves."
    The dollar fell to 40-year lows against the yen today.
    "Certainly the movement of the yen is causing some economic
turmoil in Japan," he said. "My only response is that we have
gone through about five years with the dollar going in just the
opposite direction. Although I can sympathise, it's occurred
for only a few weeks or months in Japan."
    The tarriffs, announced on Friday by President Reagan, will
affect about 300 million dlrs worth of products, only a tiny
fraction of Japan's total exports to the U.S.
    Even so, Reagan's decision "doesn't give us any joy. We
don't want to take retaliatory action here if we don't have to,"
Yeutter said.
    Yeutter said the meetings scheduled next month in
Washington between Reagan and Prime Minister Yasuhiro Nakasone
will include "some difficult items on the agenda."
    Japan has failed to implement two parts of a three-part
semiconductor agreement, Yeutter said.
    Japan has stopped dumping chips in the U.S. But it has
failed to open its domestic markets to U.S.-made chips and has
failed to end predatory pricing in Third World countries,
undercutting U.S. Products, he said.


.I 17317
.C
acq
.W
SEDGWICK BUYS BSI INCORP.
    LONDON, March 31 - Sedgwick Group Plc <SDWK.L> said its
wholly-owned Canadian subsidiary Sedgwick Tomenson Inc had
acquired BSi Incorp for a maximum eight mln Canadian dlrs.
    The funds will be raised through the issue of up to 1.16
mln ordinary Sedgwick shares to the vendors of BSi by no later
than 31 January 1991. Some 427,054 shares already have been
issued.
    BSi is a privately-held Canadian company involved in
actuarial, employee and executive benefits consulting and
administration. Its 1986 pretax profits excluding extraordinary
items totalled 1.14 mln Canadian dlrs.


.I 17318
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP.
    LONDON, March 31 - The Bank of England said it had revised
its estimate of the deficit in the money market today up to a
record two billion stg, before taking account of its morning
operations, from 1.85 billion at midday.
    The Bank has provided the system with around 1.71 billion
stg assistance so far today.


.I 17319
.C
acq
.W
REXNORD <REX> SELLS UNIT TO NEOAX <NOAX>.
    CHICAGO, March 31 - Rexnord Inc, 96 pct owned by Banner
Industries Inc <BNR> following a recent tender offer, said it
has completed the sale of its Fairfield Manufacturing Co
subsidiary to NEOAX Inc for 70.5 mln dlrs in cash.
    Rexnord said it still plans to sell its Process Machinery
Division and Mathews Conveyor Co as part of its planned program
to divest five businesses with 200 mln dlrs in assets.
Bellofram Corp and Railway Maintenance Equipment Co have
already been sold.


.I 17321
.C
lei
.W
******U.S. LEADING INDICATORS ROSE 0.7 PCT IN FEB AFTER REVISED 0.5 PCT JAN FALL.
Blah blah blah.

.I 17322
.C
trade
.W
JAPAN WILL ASK COMPANIES TO BOOST IMPORTS.
    TOKYO, March 31 - Japan's Minister of International Trade
and Industry, Hajime Tamura, will meet representatives from 151
of the nation's largest companies next week and appeal to them
to do their best to increase imports, ministry officials said.
    The meeting was unveiled as part of a plan to boost imports
and help head off protectionist legislation in the U.S.
    Senior officials from the Ministry of International Trade
and Industry told reporters that such personal appeals appeared
to have paid off in the past, as Japanese imports of
manufactured goods have climbed.
    Leading domestic semiconductor makers will boost imports
and cut production of key memory microchips next month in an
attempt to help ward off U.S. Trade sanctions, company
spokesmen said.
    The officials also said they expect the government's new
trade insurance law to boost imports and encourage Japanese
companies to set up production facilities overseas.
    Under the new law, the government will insure Japanese
companies who pre-pay for imports against loss arising from
everything from war to bankruptcy of the foreign firm they are
dealing with. MITI estimated that it would help solve Japan's
trade problem to the tune of about $10 billion dlrs a year.


.I 17323
.C
lei
.W
U.S. LEADING INDEX ROSE 0.7 PCT IN FEBRUARY.
    WASHINGTON, March 31 - The U.S. index of leading indicators
rose a seasonally adjusted 0.7 pct in February after a revised
0.5 pct January fall, the Commerce Department said.
    The department previously said the index fell 1.0 pct in
January.
    The February increase left the index at 187.1 over its 1967
base of 100, and was led by a rise in stock prices.
    A total of four of nine indicators available for February
contributed to the increase in the index.
    Besides stock prices, they were manufacturers' new orders
for consumer goods and materials, average work week and
building permits.
    Five of nine indicators were negative. They were change in
sensitive materials prices, money supply, vendor performance,
average weekly initial claims for state unemployment insurance,
and contracts and orders for plant and equipment.
    The main factor in the January revision was contracts and
orders for plant and equipment, the department said.
    December also was revised to a 2.4 pct rise from an earlier
2.3 pct rise due to a change in outstanding credit.
    The index of coincident indicators, which measures the
current economy, rose 0.9 pct in February after a decline of
1.3 pct in January and a rise of 0.9 pct in December.
    The index of lagging indicators, which measures past
economic activity, decreased 0.3 pct in February after
increasing 1.7 pct in January and falling by 0.5 pct in
December.
    The department said it has suspended net business formation
from the leading indicators index because it has deteriorated
as a measure of change in the business population.


.I 17325
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER 168 MLN STG HELP.
    LONDON, March 31 - The Bank of England said it had provided
the money market with a further 168 mln stg assistance in the
afternoon session. This takes the Bank's total help so far
today to 1.88 billion stg and compares with its estimate of a
record two billon stg shortage in the system.
    The central bank purchased bank bills outright comprising
25 mln stg in band one at 9-7/8 pct, 138 mln stg in band two at
9-13/16 pct and three mln stg in band three at 9-3/4 pct.
    It also bought two mln stg of treasury bills in band two at
9-13/16 pct.


.I 17327
.C
coffee
.W
ICO BOARD PASSES OVER COFFEE QUOTA ISSUE.
    By Lisa Vaughan, Reuters
    LONDON, March 31 - Executive board members of the
International Coffee Organization, ICO, passed over the issue
of export quota negotiations at its regular meeting here,
delegates said.
    No move was made to reopen dialogue on export quotas and no
further discussion on the issue is likely during the three-day
talks, they said.
    Producer and consumer members of the ICO council failed to
agree export quota shares in early March.
    Neither Brazil, the largest producer, nor the U.S., the
largest consumer, are ready to be flexible, delegates said.
    "The situation is unchanged," consumer spokesman Abraham Van
Overbeeke told reporters. "As long as Brazil sticks to its
position there will not be quotas -- there is no point in
meeting."
    At the last council meeting, Brazil wanted to maintain its
previous quota share of around 30 pct of the market. Consumers
and a splinter group of eight producers favoured redistribution
of export shares using "objective criteria," which would likely
have reduced Brazil's share.
    Brazilian delegate Lindenberg Sette said that, if quota
negotiations were to resume, the 1.0 mln bag shortfall Brazil
was willing to give up in early March if the producer proposal
was accepted would no longer be on the table.
    "As we said from the start...No agreement, no one million
bags," he told Reuters.
    Shortfalls of 200,000 bags offered by OAMCAF, the African
and Malagasy Coffee Organization, and 20,000 bags offered by
Angola, are also no longer valid, delegates said.
    The closest the board came to discussing quotas was a
briefing by the Guatemalan ICO delegate Rene Montes on a recent
Latin American producers meeting in Managua, delegates said.
    There, the producers expressed their political will to
negotiate basic quotas, particularly in the face of the
damaging drop in coffee prices after the council failed to
agree quotas, Montes said.
    The ICO board also reviewed export statistics and stock
verification. They expected talks on stock verification to take
up the remainder of today's session, delegates said.


.I 17330
.C
acq
.W
HUDSON FOODS <HFI> TO MAKE ACQUISITION.
    ROGERS, Ark., March 31 - Hudson Foods Inc said it has
agreed in principle to acquire Thies Cos Inc, a poultry, beef
and pork products provider to midwest supermarkets and food
distributors with sales of about 69 mln dlrs for the year ended
November One.
    The company said a definitive agreement is expected to be
signed in April.  Terms were not disclosed.


.I 17331
.C
grain;corn;
.W
IVORY COAST BOOSTS MAIZE OUTPUT.
    ABIDJAN, March 31 - Ivory Coast maize output has risen
steadily during the last two decades and the country aims to
produce two mln tonnes annually "very rapidly," the official
daily Fraternite Matin reported.
    It said the country reached self-sufficiency in maize three
years ago and harvested a record 530,000 tonnes in 1985
compared with only 200,000 tonnes 20 years earlier.
    The daily did not detail 1986 output but said further
production increases are anticipated in the years ahead as part
of a policy of boosting domestic output to cut grain imports.


.I 17332
.C
earn
.W
ESSO MALAYSIA REPORTS HIGHER PROFIT IN 1986.
    KUALA LUMPUR, March 31 - Esso Malaysia Bhd, a unit of Exxon
Corp of the U.S., Reported net profit of 70 mln ringgit from
its petroleum and ammonia operations in 1986 compared with 48.7
mln in 1985. Chairman Gerald F Cox said the improved
performance was mainly due to product prices falling more
slowly than crude prices during the year.
    He added that total sales volume increased as a result of
higher offtake by affiliated companies, while inland market
sales were maintained at around the previous year's levels.
    But growth prospects in 1987 remained weak and 1986 results
are unlikely to be repeated in the current financial year.


.I 17333
.C
ship
.W
THAILAND BUYS YUGOSLAV CRANES IN BARTER DEAL.
    BANGKOK, March 31 - The Cabinet approved a plan for the
Port Authority of Thailand to buy six gantry cranes from
Metalna Co of Yugoslavia for about 13.4 mln dlrs, a government
spokesman said.
    He said Thailand will pay for 25 pct of the cost of the
cranes in U.S. Dlrs and the rest by sales of rice, textiles and
other commodities to Yugoslavia.
    The Bangkok Shipowners and Agents Association has appealed
to the government to scrap the purchase plan. It said it would
be an unnecessary expense as most vessels calling at the port
already have their own cargo handling equipment.


.I 17334
.C
earn
.W
JEWELMASTERS <JEM> SEES NET BELOW ESTIMATES.
    NEW YORK, March 31 - Jewelmasters Inc said it expects to
report net income for the year ended January 31 20 to 25 pct
below analysts' estimates of 1,750,000 dlrs or 95 cts per share.
    Jewelmasters sales sales for the year just ended were about
52.5 mln dlrs. In the prior year it earned 1,650,000 dlrs on
sales of 45.1 mln dlrs.
    Jewelmasters said net income for the year was hurt by
disappointing sales in December and January, a high level of
advertising spending in the fourth quarter, higher than
expected opening expenses for 34 additional units and an
adjustment to inventory associated with a shift to a more
comprehensive inventory system.
    Jewelmasters said it expects to report audited results for
the fourth quarter and year in about three weeks.


.I 17335
.C
alum
.W
ALUMINIUM CAPACITY GROWTH TREND SEEN INSUFFICIENT.
    LONDON, March 31 - Aluminium capacity expansion planned for
the period after 1990 will be insufficient to supply any
acceleration in demand growth, let alone an increase on the
scale which seems likely, according to analyst Anthony Bird
Associates' 1987 Aluminium Review.
    By 1995 non-socialist world primary capacity will need to
be around 18 mln tonnes, whereas on current plans only 15 mln
tonnes are scheduled, Bird said.
    Bird forecast higher economic growth after 1990 and
increased imports by less developed countries.
    Aluminium consumption growth is not expected to accelerate
by as much as general growth, but non-socialist world
consumption is nevertheless forecast to increase sharply from
13.77 mln tonnes in 1990 to 17.25 mln tonnes in 1995, Bird
said.
    Aluminium companies were slow to adjust to the pace of
change after 1973, the review said, and now they have completed
this transition they may be in danger of remaining preoccupied
with the strategies of retrenchment and survival which have
served them well in recent years.
    In order to encourage the construction of additional
smelters aluminium prices will need to settle at a higher
level.
    Production costs are likely to rise again in the years
ahead as the glut of alumina capacity vanishes and electricity
suppliers take a more aggressive line with aluminium companies,
according to the review.
    At March 1987 prices the three most likely cost-price
scenarios call for a long-run aluminium price of between 73 and
89.5 cents a lb, depending on exchange rates, Bird said.
    Such a price development is not expected to cause any
marked competitive problems for the metal because of the likely
rise in commodity prices as a whole and cost pressures in the
pipeline for steel and copper.
    In the short term, however, the outlook is dull, Bird said,
as the world economy has not responded well to the
opportunities offered by cheap oil.
    Its 1987 consumption forecast of 13.01 mln tonnes is 0.4
pct down on 1986, while production is forecast six pct higher
in 1987 at 12.67 mln tonnes.


.I 17336
.C
acq
.W
ALPHA INDUSTRIES <AHA> SELLS DIVISION.
    WOBURN, Mass., March 31 - Alpha Industries Inc said it has
sold its Microelectronics Division to Triax Corp for
undisclosed terms, retroactive to February One.
    It said the division has yearly revenues of about 12 mln
dlrs and makes RF microwave components for the defense
electronics industry.
    Alpha said it plans to concentrate on the high frequency
portion of the electromagnetic spectrum.


.I 17338
.C
jobs
.W
NORWEGIAN UNEMPLOYMENT FALLS IN MARCH.
    OSLO, March 31 - Unemployment fell in March to 36,510, or
1.7 pct of the workforce, compared with 39,700 (1.9 pct) in
February and 38,839 (2.2 pct) in March 1986, the Labour
Directorate said.


.I 17339
.C
earn
.W
******J.C. PENNEY DECLARES TWO FOR ONE SPLIT, RAISES QUARTERLY.
Blah blah blah.

.I 17340
.C
carcass
.W
LONDON MEAT FUTURES NEED MARKETING - CHAIRMAN.
    LONDON, March 31 - Pigmeat and beef futures, which have
been thinly traded on the London Meat Futures Exchange, LMFE,
despite lower physical prices and the introduction of new
contracts, need more effective marketing, LMFE chairman Pat
Elmer said in his annual report.
    In 1986 the Exchange introduced live cattle and pig cash
settlement contracts, representing a move away from the
problems of cash distortions and squeezes, which initial
deliverable "buyers option" contracts created, he said.
    Although the physical industry is aware of the market and
follows its prices keenly, this has not been reflected in
market volume, Elmer said.
    "If we are to achieve our true potential the floor members
must give the market much more time and attention," he added.


.I 17341
.C
acq
.W
INTERLINK SAYS NOT PLANNING BID FOR PUROLATOR.
    LONDON, March 31 - British package courier <Interlink
Express Plc> does not plan to bid for the whole or part of  
Purolator Courier Corp <PCC.N>, a spokesman said.
    "There is no intention of making any sort of approach to
Purolator," the spokesman told Reuters, adding, "it would be a
case of David versus Goliath."
    Interlink shares started trading in the U.K. Unlisted
Securities Market in October 1986. It posted pre-tax profits of
2.13 mln stg on turnover of 9.6 mln stg in the six months to
December 31, 1986. Purolator last year topped turnover of 465
mln dollars, the spokesman said.
between Purolator and Interlink in view of a takeover or
participation. He categorically denied press reports suggesting
Interlink was developing a buyout bid.
    The reports said the proposed bid would be a price above
the 35 dlrs per share offered by <E.F. Hutton LBO Inc>. The
Hutton offer expires tomorrow.
    The spokesman said Interlink was seeking to expand
business, first in continental Europe and later in the U.S. But
the company did not expect to gain foothold in the U.S. Market
until 1989 at the earliest, he said.


.I 17343
.C
money-fx;trade;
.W
SOUTH KOREA TO RESIST CURRENCY REVALUATION.
    SEOUL, March 31 - South Korean Finance Minister Chung
In-yong will resist pressure for a currency revaluation to cut
South Korea's trade surplus with the United States when he
meets Treasury Secretary James Baker next week, Finance
Ministry officials said.
    They said Chung would leave Monday to attend the
International Monetary Fund's Interim Committee meeting and to
hold talks with Baker and other U.S. officials on ways to
reduce the surplus.
    The April 9 committee meeting is expected to review the
agreement by six industrialized nations in Paris last month
that newly-industrialized countries, such as South Korea and
Taiwan, should allow their currencies to increase in value.


.I 17344
.C
earn
.W
PENNEY <JCP> SETS STOCK SPLIT, RAISES QUARTERLY.
    NEW YORK, March 31 - J.C. Penney Co Inc said its board
declared a two-for-one stock split and raised the quarterly
dividend 12 cts per share on a presplit basis to 74 cts.
    Both are payable May One to holders of record April 10.


.I 17345
.C
earn
.W
HILLENBRAND INDUSTRIES INC <HB> 1ST QTR FEB 28.
    BATESVILLE, Ind., March 31 -
    Shr 31 cts vs 28 cts
    Net 11.9 mln vs 10.9 mln
    Revs 167.2 mln vs 154.0 mln


.I 17346
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 215 MLN STG LATE HELP.
    LONDON, March 31 - The Bank of England said it had provided
the money market with late assistance of around 215 mln stg.
This takes the bank's total help today to some 2.096 billion
stg and compares with its forecast of a two billion stg
shortage in the system today.


.I 17347
.C
acq
.W
CABLE SAYS CONSORTIUM PROPOSALS NOT ACCEPTABLE.
    LONDON, March 31 - Cable and Wireless Plc <CAWL.L> said
proposals to resolve a dispute over entry to Japan's
telecommunications market were not acceptable.
    A company spokesman said the proposals appear to have been
made in today's edition of the Japanese daily Asahi by Fumio
Watanabe, head of a telecommunications committee with the
Federation of Economic Organisations.
    However, the suggestion still recommended a merger between
the two consortia tendering for contracts and would give Cable
a five pct stake, more than the three pct originally proposed
but less than the 20 pct it holds in its original venture, he
said.
    The proposal would also offer a Cable nominee a seat on the
board of the merged company.
    The spokesman said he believed Japan should accept
applications from the two rivals for fair review.
    Earlier today Cable shares firmed on market speculation
that the dispute -- which is being treated by Britain's
government as a test case of how open the Japanese
telecommunications market is -- was near settlement.
    Cable shares at 1350 GMT were quoted at 375p compared with
a close last night at 364p.


.I 17349
.C
trade
.W
U.S./JAPAN TRADE WAR NOT IN UK'S INTEREST - LAWSON.
    LONDON, March 31 - U.K. Chancellor of the Exchequer Nigel
Lawson said the United States and Japan must work to avert a
possible trade war, and he added that a trade war would not be
in the interests of Britain.
    Lawson told journalists that "the prospects for the (U.K.)
economy look very very good - providing we can avoid a trade
war." He stressed that "a heavy responsiblity in different ways
lies on Japan and the United States to ensure that we do avoid
such a trade war."
    Asked whether he believed such a trade war could be
averted, Lawson replied, "I very much hope so."
    Britain last week warned that it would retaliate if Japan
did not move soon to open its markets to outside competition.
    Prime Minister Margaret Thatcher gave notice that the U.K.
Would fight the Japanese government's attempt to prevent (Cable
and Wireless Plc) (CAWL.L) from taking a significant position
in a new Japanese international telecommunications venture.
    But British officials are now trying to dampen
anti-Japanese rhetoric, to try to keep developments under
control.
    The British Conservative government will on Thursday
consider what legal options are available to it to try to
increase U.K. Access to Japanese markets, officials said.


.I 17351
.C
acq
.W
******GAF CORP OFFERS 36 DLRS A SHARE CASH FOR BORG-WARNER.
Blah blah blah.

.I 17353
.C
gnp
.W
ECONOMISTS CUT AUSTRIAN GDP GROWTH FORECAST.
    VIENNA, March 31 - The Institute for Economic Research
(WIFO) said it has cut its forecast for Austria's 1987 gross
domestic product growth to a real one pct from a two pct
forecast made last December.
    WIFO chief Helmut Kramer told a new conference that he saw
the one pct figure, which compares with 1.8 pct last year, as
the upper limit of growth. The institute had made the revision
due to poor prospects for Austrian exports, he added.
    A collapse in sales to the Eastern European and oil
producing states, combined with the effects of the dollar's
fall, mean exports overall are unlikely to rise this year.
    Kramer said domestic demand alone would fuel growth this
year. After last year's 2.8 pct rise in real incomes, private
consumption was likely to rise 2.25 pct in 1987 after 1.9 pct
in 1986, despite a present trend towards higher savings.
    Unemployment was likely to rise to almost six pct from 5.2
pct last year due to the slack economic activity.
    Kramer said the current account was likely to run a deficit
of about four billion schillings compared with a 2.6 billion
surplus recorded last year. The National Bank, Austria's
central bank, last month forecast the current account would be
roughly in balance this year.
    However, Kramer said the lower economic growth should have
no notable effect on the government's attempts to cut the
budget deficit. This year's aim of reducing the deficit to 4.9
pct of GDP from 5.1 pct in 1986 could still be achieved, he
said.


.I 17354
.C
acq
.W
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT.
    RAVENNA, Italy, March 31 - <Gruppo Ferruzzi> is studying a
project which could result in a public share offer of up to 49
pct of its French unit <European Sugar (France)> and could
raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said.
    Gardini told Reuters the operation under consideration was
aimed at "international markets" and that the figure of 400 mln
dlrs given in some press reports "was probably about right."
    European Sugar, wholly-owned by Ferruzzi unit Eridania
Zuccherifici Nazionali SpA <ERDI.M>, is expected to absorb the
European corn wet milling business of CPC International Inc
<CPC.N> which Ferruzzi recently agreed to buy.
    Ferruzzi announced last week it had agreed in principle to
buy the CPC operation for 630 mln dlrs.
    A Ferruzzi spokesman later confirmed that the group was
studying the transfer of the CPC business to European Sugar
along with a possible share offering in the Paris unit, but
gave no details.
    The flotation plan has been interpreted by financial
analysts as a means of helping finance the acquisition of the
CPC business.
    In London yesterday, chairman of Belgian starch producer
<Amylum NV> Pierre Callebaut told Reuters that since Ferruzzi
was "apparently still organising finance," his company might
still succeed with its rival bid for the CPC business.
    Gardini, commenting on Callebaut's remarks, said the 630
mln dlrs agreed for the CPC acquisition would be paid "at the
date foreseen in the preliminary contract."
    Gardini could not reveal the date in question nor give any
indication of the likely timing of an offering of shares in
European Sugar, but it was announced last week that Ferruzzi's
purchase of the CPC business was expected to be completed by
September 30.
    Callebaut said yesterday that Amylum was surprised and
disappointed that its 675 mln dlr bid cash offer for CPC's
European business was apparently rejected in favour of
Ferruzzi's lower bid.
    Gardini, commenting on Callebaut's remarks, said "Amylum
should know that one succeeds in a bid by making the right
offer at the right moment - exactly as Ferruzzi did in the case
of the acquisition of CPC's European business."
    Gardini said it was not Callebaut's business to concern
himself with the European Sugar capital raising operation under
study, he added.
    Asked about press reports that Ferruzzi might follow up the
European Sugar flotation with the sale of 49 pct of the CPC
business, Gardini said: "We do not exclude having minority
partners in the CPC business." He declined to elaborate.


.I 17357
.C
acq
.W
******CORRECTED - GAF CORP OFFERS 46 DLRS A SHARE CASH FOR BORG-WARNER (CORRECTING AMOUNT).
Blah blah blah.

.I 17359
.C
money-fx
.W
U.S. TREASURY'S BAKER SEES RATE STABILITY.
    WASHINGTON, March 31 - Treasury Secretary James Baker said
the agreement among the industrial countries reached in Paris
last month should foster stability of exchange rates at around
current levels.
    In testimony before the House Appropriations Committee,
Baker outlined many of the measures taken designed to achieve
more balanced growth and a reduction of trade imbalances during
the Paris meeting.
    "These measures should also foster greater stability of
exchange rates around current levels," he said.
    Baker reiterated that the ministers at the Paris meeting
agreed that their currencies were within ranges "broadly
consistent with underlying economic fundamentals and that
further substantial exchange rate shifts could damage growth
and adjustment prospects."
    He added: "In these circumstances, we agreed to cooperate
closely to foster stability of exchange rates around current
levels."


.I 17361
.C
acq
.W
GAF <GAF> SEEKS ALL OF BORG-WARNER <BOR>.
    WAYNE, N.J., March 31 - GAF Corp said it has made an all
cash merger proposal to Borg-Warner Corp at 46 dlrs per share
for all the company's common stock.
    Following a meeting yesterday with Borg-Warner officials
and investment bankers, GAF said, it is today delivering a
letter to the Borg-Warner board outling the terms of the
proposal that would be made by tender offer, pursuant to a
mutually acceptable merger agreement to be approved by the
Borg-Warner board and conditioned on that board's
recommendation of the tender offer and merger.
    GAF, in its letter, stated it intends to finance the
proposed acquisition entirely with its own funds and bank
borrowings under a syndicated bank loan from a group of banks
led by Chase Manhattan Corp's <CMB> Chase Manhattan Bank.
    Last week, GAF increased its ownership of Borg-Warner
shares to 19.9 pct of those outstanding Minstar Inc <MNST> sold
its 12.4 pct holding.
    GAF emphasized "the amicable nature of the proposed
transaction," which it characterized as a partnership.
    GAF said it wanted to discuss with the Borg-Warner board 
key roles for Borg-Warner's senior management in the new
organization, board representation for Borg-Warner directors on
a newly constituted board, and a company name change.
    GAF said it will be filing an amendment to its 13-D with
the U.S. Securities and Exchange Commission.
    Borg-Warner has about 85.6 mln common shares outstanding.
    Minstar chairman Irwin L. Jacobs sold his stake after
Borg-Warner after the company failed to respond to his
mid-February offer for a negotiated agreement at a minimum
price of 44 dlrs a share.
    In November, Jacobs had offered to enter into acquisition
talks with Borg-Warner based on a price of between 43 and 48
dlrs a share.


.I 17362
.C
earn
.W
<TRANS CANADA GLASS LTD> 4TH QTR LOSS.
    Vancouver, British Columbia, March 31 -
    Shr loss 11 cts vs loss eight cts
    Net loss 500,000 vs loss 500,000
    Sales 47.4 mln vs 37.5 mln
    Year
    Shr profit 70 cts vs profit 89 cts
    Net profit 4.4 mln vs profit 5.3 mln
    Sales 195.5 mln vs 148.3 mln


.I 17363
.C
earn
.W
GEOTHERMAL RESOURCES INTERNATIONAL INC <GEO>.
    SAN MATEO, Calif., March 31 - Year
    Oper shr 1.23 dlrs vs 1.85 dlrs
    Oper shr diluted 1.23 dlrs vs 1.79 dlrs
    Oper net 6,799,000 vs 9,321,000
    Revs 7,474,000 vs 12.4 mln
    Avg shrs 4,503,000 vs 4,350,000
    Avg shrs diluted 4,508,000 vs 5,206,000
    NOTE: Net excludes gains from discontinued operations of
386,000 dlrs vs 903,000 dlrs.
    1986 year net excludes gain 1,910,000 dlrs from sale of
discontinued operations.
    Net includes tax credits of 9,450,000 dlrs vs 11.9 mln dlrs.


.I 17364
.C
earn
.W
FIRST CITY INDUSTRIES INC <FCY> 4TH QTR NET.
    BEVERLY HILLS, Calif., March 31 -
    Opoer shr profit 17 cts vs loss 96 cts
    Oper net profit 2,293,000 vs loss 7,110,000
    Sales 116.0 mln vs 108.3 mln
    Year
    Oper shr loss 2.03 dlrs vs loss 2.12 dlrs
    Oper net loss 13.8 mln vs loss 11.6 mln
    Sales 454.0 mln vs 446.4 mln
    NOTE: Net excludes gains from discontinued operations of
10.2 mln dlrs vs 1,985,000 dlrs in quarter and 4,262,000 dlrs
vs 1,320,000 dlrs in year.


.I 17367
.C
earn
.W
MAGELLAN PETROLEUM CORP <MPET> 3RD QTR JAN 31.
    HARTFORD, Conn., March 31 -
    Shr loss nil vs profit nil
    Net loss 90,656 vs profit 892
    Revs 2,194,242 vs 2,481,784
    Avg shrs 19.5 mln vs 16.1 mln
    Nine mths
    Shr profit nil vs loss one ct
    Net profit 42,824 vs loss 149,150
    Revs 6,364,992 vs 6,503,811
    Avg shrs 19.5 mln vs 16.1 mln
    NOTE: Net includes tax credits of 98,338 dlrs vs 81,492
dlrs in quartrer and 193,193 dlrs vs 226,560 dlrs in nine mths.


.I 17368
.C
earn
.W
TERRA MINES LTD <TMEXF> YEAR LOSS.
    Edmonton, Alberta, March 31 -
    Shr loss 89 cts vs loss 17 cts
    Net loss 13.9 mln vs loss 1,996,000
    Revs 204,000 vs 2,087,000
    Note: 1986 includes writedown of 12.5 mln dlrs for the
costs of mineral properties and deferred exploration and
development Bullmoose Lake in the Northwest Territories.


.I 17369
.C
earn
.W
MERRILL CORP <MRLL> 4TH QTR JAN 31 NET.
    ST. PAUL, March 31 -
    Shr 17 cts vs 17 cts
    Net 777,000 vs 595,000
    Revs 12.9 mln vs 11.7 mln
    Year
    Shr 68 cts vs 48 cts
    Net 2,957,000 vs 1,614,000
    Revs 49.4 mln vs 38.6 mln
    Avg shrs 4,344,204 vs 3,337,284


.I 17370
.C
earn
.W
D.O.C. OPTICS CORP <DOCO> 4TH QTR LOSS.
    SOUTHFIELD, MICH., March 31 -
    Shr loss 11 cts vs profit 12 cts
    Net loss 286,817 vs profit 292,014
    Revs 9,972,379 vs 9,413,304
    Year
    Shr profit 63 cts vs profit 57 cts
    Net profit 1,547,893 vs profit 1,481,703
    Revs 43.9 mln vs 41.0 mln
    Avg shrs 2,474,820 vs 2,617,768


.I 17376
.C
interest
.W
U.S. TREASURY'S BAKER SEES EXPANSION CONTINUING.
    WASHINGTON, March 31 - Treasury Secretary James Baker said
that the current expansion, which he noted was in its fifth
year, will continue in the period ahead.
    He told the House Appropriations Committee that "there is
every prospect that the current expansion will continue
unabated through 1987 and the years beyond."
    Baker said interest rates over the period have continued to
decline and that "policies of the Federal Reserve assure that
ample credit was available.
    He said that the administration's longer term forecast
envisioned that "we will maintain and improve upon our progress
in bringing down the rate of inflation."


.I 17377
.C
trade
.W
EC APPROVES MEDITERRANEAN FINANCIAL PACKAGES.
    BRUSSELS, March 31 - EC ministers have approved financial
packages for several Mediterranean states totalling 1.6 billion
European currency units, an EC official said.
    The packages, part of special EC trade agreements with
Tunisia, Egypt, Lebanon, Israel, Algeria, Morocco and Jordan
until 1992, include 615 mln Ecus in grants, he said.
    They include one billion Ecus in loans from the European
Investment Bank, the EC long-term financing arm. The framework
for the transfers was signed yesterday by EC farm ministers
after being agreed in principle by foreign ministers earlier.


.I 17378
.C
wheat;grain;barley;
.W
SOVIET UNION FEATURES IN U.K. GRAIN EXPORTS.
    LONDON, March 31 - The Soviet Union featured prominently in
U.K. Grain exports outside the EC for the period July 1/March
13, taking a combined total of 1.10 mln tonnes of wheat and
barley out of all-destination U.K. Exports of 7.16 mln tonnes,
the Home Grown Cereals Authority said, quoting provisional
Customs and Excise figures.
    The Soviet total comprises 634,000 tonnes of wheat and
472,000 tonnes of barley. Grain traders said the figures
understate shipments already made by several thousand tonnes
and they expect total U.K. Grain exports to the USSR this
season to reach 2.5 mln tonnes, comprising 1.5 mln wheat/1.0
mln barley.


.I 17379
.C
earn
.W
SOUTHERN HOSPITALITY CORP <SHOS> 3RD QTR FEB 28.
    NASHVILLE, Tenn., March 31 -
    Shr loss 23 cts vs loss 11 cts
    Net loss 1,128,412 vs loss 548,054
    Sales 9,827,784 vs 12.1 mln
    Nine mths
    Shr loss 19 cts vs profit 11 cts
    Net loss 926,924 vs profit 527,004
    Sales 32.3 mln vs 37.5 mln


.I 17382
.C
earn
.W
ELDER-BEERMAN STORES CORP <ELDR> 4TH QTR FEB ONE.
    DAYTON, Ohio, March 31 -
    Oper shr 89 cts vs 1.31 dlrs
    Oper net 3,345,000 vs 4,885,000
    Sales 126.8 mln vs 120.1 mln
    Year
    Oper shr 1.67 dlrs vs 2.15 dlrs
    Oper net 6,299,000 vs 8,013,000
    Sales 380.9 mln vs 352.1 mln
    NOTE: Share adjusted for five pct stock dividend.
    Prior year net both periods excludes gain 1,998,000 dlrs
from reversion of overfunded pension plans.
    Year net includes pretax LIFO inventory charge 600,000 dlrs
vs credit 900,000 dlrs.*Tax rate 40.6 pct vs 32.0 pct due to
impact of Tax Reform Act of 1986.
    Bad debt writeoffs for year up one mln dlrs pretax from the
year before.


.I 17384
.C
money-fx
.W
TREASURY'S BAKER SAYS COOPERATION WORKING.
    WASHINGTON, March 31 - Treasury Secretary James Baker said
that the agreement in Paris to cooperate in exchange rate
changes showed that the process of coordination agreed to at
the Tokyo summit was working.
    He told the House Appropriations Committee the meeting
"demonstrated that the process is working."
    He noted that the industrial surplus countries committed
themselves to strengthen their growth prospects while the
deficit countries agreed to reduce their domestic imbalances.

    Baker said that for its part, Japan announced a cut in its
discount rate to 2.5 pct and committed itself to prepare a
comprehensive economic program to stimulate domestic demand
after the Diet completes action on the current budget.
    He said the United States must also do its share pressing
for reductions in the federal budget deficit through spending
cuts.
    "And we must continue to oppose protectionist pressures,"
he added.


.I 17386
.C
acq
.W
AKZO PLANNING US INVESTMENTS.
    ARNHEM, Netherlands, March 31 -  Dutch chemicals group Akzo
NV <AKZO.AS> said it hoped to consolidate its core activities
this year by making small acquisitions in the US.
   Akzo chairman Aarnoud Loudon told a news conference on its
1986 report that the company wanted to achieve the same level
of US investments it had before it divested its fibre firm
American Enka in December 1985, when US investments represented
20 pct of Akzo's total capital.
   The US expansion plans were not an attempt to compensate for
losses in guilder income through the lower dollar, Loudon said.
    He said a more important factor was the speed of growth in
the US, adding "It's the largest industrial market in the world."
But he said the company would also be looking at possible
acquisitions in Europe.
    Despite its highly liquid cash flow, Akzo did not plan
acquisitions on a scale that would negatively influence the
company's debt/equity ratio, Loudon said.
   The chairman said in the past two years Akzo had spent 1.1
billion guilders on acquisitions, of which nearly two thirds
were in the United States.
REUTER...

.I 17389
.C
gnp
.W
OECD SEES MAJOR ADJUSTMENT FOR AUSTRALIA.
    PARIS, March 31 - Australia faces a major medium term
adjustment to reduce debt and improve its economic performance,
the Organisation for Economic Cooperation and Development said
in its latest annual review of the Australian economy.
    It said Australia had a current external deficit of 5-3/4
pct of gross domestic product, high and rapidly rising external
debt equal to 30 pct of GDP, growing servicing costs and
inflation above nine pct, far higher than that of other OECD
countries.
    A major policy change in early 1985 helped lay the basis
for sustained non-inflationary growth and external
competitiveness had improved, but economic performance overall
had sharply deteriorated since June 1985.
    A major shift of real resources to the external sector --
about 4-1/2 pct of GDP by 1990-91 -- was required for the
economy to expand in line with potential, for employment to
grow, and for the debt/GDP ratio to stabilize, it said.
    Success depended on the setting of right policies including
tighter fiscal policy, a reduction in the public sector
borrowing requirement and on private sector behaviour.
    Looking ahead over the next 18 months, the OECD expected
economic performance to improve, partly as a result of tighter
fiscal and monetary policy, and a substantial improvement in
trade volumes.
    It said positive GDP growth of three pct might be restored,
the current external deficit could fall to some 4-1/2 pct of
GDP by the first half of next year, while inflation was
projected to decelerate to around five to 5-1/2 pct by
mid-1988.
    Continued real wage moderation was essential to maintain
the competitive edge created by the Australian dollar's
depreciation, and to maintain if not boost profit shares in
order to encourage business investment.
    The report urged Australia to broaden its export base by
developing viable and competitive service and manufacturing
industries, and not count on a recovery of commodity markets to
correct its external imbalances.
    It added Australia should reduce protection levels in
manufacturing, even though faster trade liberalisation would no
doubt hurt the most protected sectors of industry.


.I 17392
.C
sugar
.W
U.S. SUGARBEET PLANTINGS SEEN RISING IN 1987.
    WASHINGTON, MARCH 31 - Representatives of U.S. sugar grower
organizations said they expect some increase the area planted
to sugarbeets this year and said the prospects for the 1987
cane sugar crop also are good.
    Dave Carter, president of the U.S. beet sugar association,
said plantings may be up in two major beet growing states,
California and Michigan, while sowings could be down slightly
in the largest producing state of Minnesota.
    Overall, Carter predicted beet plantings would rise in the
midwest, and this coupled with increases in California would
increase U.S. sugarbeet plantings slightly from the 1.232 mln
acres sown last year.
    USDA later today releases its first estimate of 1987 U.S.
sugarbeet plantings in the prospective plantings report.
    The main reason for the expected increase in beet sowings
is that returns from competing crops such as soybeans and
grains are "just awful," said Carter.
    In the midwest, bankers are strongly encouraging farmers to
plant sugarbeets because the U.S. sugar program offers a loan
rate of 18 cents per pound and because payments to farmers from
beet processors are spread evenly over the growing season, said
Luther Markwart, executive vice president of the American
sugarbeet growers association.
    "The banks are putting a lot of pressure on these guys,"
Markwart said.
    In some areas there are waiting lists of farmers seeking a
contract with processors to plant beets, Markwart said.
    USDA's report today will not include any harvested area
estimates for sugarcane, but representatives of Florida, Hawaii
and Louisiana growers said crop prospects are good.
    Horis Godfrey, a consultant representing Florida and Texas
cane growers, said Florida cane is off to a good start  because
for the first time in several years there was no winter freeze.
Although area to be harvesteed is about the same as last year,
cane production may be up in Florida this year, he said.
    In Hawaii, area harvested may decline slightly this year,
but likely will be offset again in 1987 by increased yields,
said Eiler Ravnholt, vice president of the Hawaiian Sugar
Planters Association.
    The acreage planted to sugarbeets will receive more than
the usual amount of attention this year because of mounting
concern that continued increases in domestic sugar production
threaten the U.S. sugar program, industry sources said.
    The increases in beet plantings have especially caused
concern among cane growers who have not expanded plantings,
particularly in Hawaii, industry officials said.
    "We haven't had a good weather year throughout the beet and
cane areas in more than five years," said Godfrey, adding that
the U.S. may be due for a good weather year.
    Rep. Jerry Huckaby, D-La., chairman of the House
agriculture subcommittee responsible for the sugar program, has
threatened to offer legislation next year to curb domestic
sweetener output if growers fail to restrain output in 1987.


.I 17395
.C
earn
.W
HECK'S INC <HEX> 4TH QTR JAN THREE NET.
    NITRO, W.Va., March 31 -
    Shr losses not given
    Net loss 7,800,000 vs loss 5,400,000
    Sales 181.2 mln vs 182.0 mln
    Year
    Shr losses not given
    Net loss 17.8 mln vs loss 4,900,000
    Sales 566.3 mln vs 523.3 mln
    NOTE: Company operating in Chapter 11 bankruptcy.
    1986 year net includes four mln dlr LIFO charge and
3,400,000 dlr credit from pension plan termination.


.I 17397
.C
earn
.W
CAPITAL BANCORP <CAPB> SEES GAIN ON UNIT SALE.
    BOSTON, March 31 - Capitol Bancorp said it has sold its 80
pct interest in CAP Mortgage Co Inc for 3.1 mln dlrs, adding
this is expected to result in an after tax gain of about
900,000 dlrs to be reported in the first quarter.
    Capitol Bancorp said the CAP Mortgage interest was sold to
Michael M. Bronstein, president of CAP Mortgage, and Robert
Fox, president of Fox Properties Inc. Bronstein already held
the other 20 pct of CAP Mortgage's stock.


.I 17398
.C
earn
.W
4G DATA SYSTEMS <GGGG> 3RD QTR NET.
    NEW YORK, March 31 -qtr ends Jan 31
    Shr nil vs nil
    Net 2,213 vs 16,288
    Revs 1,418,019 vs 795,522
    Avg shrs 6,650,000 vs 4,150,000
    Nine mths
    Shr two cts vs three cts
    Net 118,984 vs 103,384
    Revs 4,066,605 vs 2,741,241
    Avg shrs 6,650,000 vs 3,969,444


.I 17400
.C
earn
.W
<NIKI-LU INDUSTRIES INC> YEAR NET.
    HIALEAH, Fla., March 31 -
    Oper shr profit 18 cts vs loss 38 cts
    Oper net profit 577,000 vs loss 1,147,000
    Revs 16.3 mln vs 19.8 mln
    Avg shrs 3,227,625 vs 3,057,206
    NOTE: 1986 net excludes 485,000 dlr tax credit.


.I 17402
.C
earn
.W
COLOROCS CORP <CLRX> YEAR LOSS.
    NORCROSS, Ga., March 31 -
    Shr loss 28 cts vs loss 29 cts
    Net loss 2,086,477 vs loss 1,466,907
    Revs 218,864 vs 60,000
    Avg shrs 7,510,781 vs 4,990,168


.I 17403
.C
cocoa;coffee;sugar;
.W
CSCE RESTRUCTURES COFFEE FUTURES DAILY LIMITS.
    New York, March 31 - The Coffee, Sugar and Cocoa Exchange
has expanded the normal daily trading limit in Coffee "C"
contracts to 6.0 cents a lb, from the previous 4.0 cents,
effective today, the CSCE said.
    The new daily limits apply to all but the two nearby
positions, currently May and July, which trade without limits.
    In addition, the 6.0 cent limit can be increased to 9.0
cents a lb if the first two limited months both make limit
moves in the same direction for two consecutive sessions,
according to the CSCE announcement.
    Before the rule change today, the CSCE required two days of
limit moves in the first three restricted contracts before
expanding the daily trading limit.
    Under new guidelines, if the first two restricted
deliveries move the 6.0 cent limit for two days the Exchange
will expand the limit. The expanded 9.0 cent limit will remain
in effect until the settling prices on both of the first two
limited months has not moved by more than the normal 6.0 cent
limit for other contracts in two successive trading sessions,
the CSCE said.


.I 17405
.C
wheat;grain;
.W
KANSAS EXCHANGE HITS CFTC POSITION LIMIT PLAN.
    WASHINGTON, March 31 - The Kansas City Board of Trade,
KCBT, has asked federal futures regulators to modify a proposal
to raise the Chicago Board of Trade's, CBT, speculative
position limits on wheat futures contracts, saying the plan
would put the the Kansas exchange "at a serious competitive
disadvantage."
    The Commodity Futures Trading Commission, CFTC, last month
proposed raising CBT wheat speculative limits to 1,200
contracts all months net from 600 contracts, and to 900
contracts for any single month from 600 contracts.
    At the same time, CFTC proposed leaving KCBT's wheat
speculative position limits unchanged.
    "Higher limits for CBT wheat than for KCBT wheat would
significantly impair the KCBT's ability to compete with the CBT
for speculative interest," Michael Braude, president of the
Kansas exchange, said in a letter to CFTC.
    A CFTC spokesman said the commission took into account open
interest affected by existing speculative limits in proposing
to raise CBT's limits.
    KCBT said the CFTC proposal would reduce hedging
efficiency, constrain growth of intermarket spreading and of
the exchange's wheat options contract and impair its ability to
attract large speculators.
    The Kansas City exchange asked the commission to amend its
proposal to change the limits for KCBT wheat to the exact same
bushel amount as specified for CBT wheat.
    CFTC will consider public comments on the proposal until
June 3.


.I 17406
.C
acq
.W
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT.
    RAVENNA, Italy, March 31 - Gruppo Ferruzzi is studying a
project which could result in a public share offer of up to 49
pct of its French unit European Sugar (France) and could raise
around 400 mln dlrs, Ferruzzi chairman Raul Gardini said.
    Gardini told Reuters the operation under consideration was
aimed at "international markets" and that the figure of 400 mln
dlrs given in some press reports "was probably about right."
    European Sugar, wholly-owned by Ferruzzi unit Eridania
Zuccherifici Nazionali SpA, is expected to absorb the European
corn wet milling business of CPC International Inc which
Ferruzzi recently agreed to buy.
    Ferruzzi announced last week it had agreed in principle to
buy the CPC operation for 630 mln dlrs.
    A Ferruzzi spokesman later confirmed that the group was
studying the transfer of the CPC business to European Sugar
along with a possible share offering in the Paris unit, but
gave no details.
    The flotation plan has been interpreted by financial
analysts as a means of helping finance the acquisition of the
CPC business.


.I 17410
.C
acq
.W
GANDALF <GANDF> ACQUIRES STAKE IN DATA/VOICE.
    OTTAWA, March 31 - Gandalf Technologies Inc said it
acquired a significant minority equity interest in privately
held Data/Voice Solutions Corp, of Newport Beach, Calif., for
undisclosed terms.
    Gandalf did not specify the size of the interest.
    Data/Voice is a three-year-old designer and manufacturer of
a multiprocessor, multiuser MS-DOS computing system that
Gandalf plans to integrate with its private automatic computer
exchange information system, Gandalf said.


.I 17411
.C
acq
.W
KEYCORP <KEY> AGREES TO ACQUIRE UTAH BANK.
    ALBANY, N.Y., March 31 - Keycorp said it has signed a
definitive agreement to acquire Commercial Security Bancorp
<CSEC> by exchanging Keycorp common valued at 63 dlrs for each
Commercial Securities share.
    Keycorp said this gives the transaction an indicated value
of 102 mln dlrs.
    Keycorp said the amount of its stock to be exchanged will
be based on the daily average closing price of the shares for
an unspecified period prior to the closing of the acquisition.
    Based on a maximum of about 2.75 Keycorp shares and a
minimum of about 1.8 Keycorp to be exchanged, the agreement
provides that if the average price of Keycorp common is less
than 21.50 dlrs a share during the pricing period, the
agreement will terminate unless a new conversion ratio can be
negotiated.
    Keycorp said the transaction is designed to be tax free to
Commercial Security shareholders. The company said it will
treat the merger as a pooling of interests.
    It said the proposal is subject to approval by Commercial
Security shareholders and various regulators.
    Keycorp said the merger is expected to become effective as
soon as possible after December 31, 1987, the date Utah's
interstate banking law becomes operational.
    Keycorp said Richard K. Hemingway and certain members of
the Hemingway family who own about 30 pct of Commercial
Security's outstanding shares have agreed to vote in favor of
the transaction and not dispose of their stock.
     Based in Salt Lake City, Commercial Security ended 1986
with assets of 830.3 mln dlrs, net loans of 496.6 mln dlrs and
deposits of 707.9 mln dlrs. It had net income of 5.1 mln dlrs
or 3.16 dlrs a share on 1.6 mln average shares outstanding last
year.                        


.I 17412
.C
crude;nat-gas;
.W
EXXON <XON> OIL AND GAS PRODUCTION ROSE IN 1986.
    NEW YORK, March 31 - Exxon Corp said in its annual report
that it raised production in 1986 although it did not replace
all oil and gas produced.
    The company said that it added about four pct to production
bringing it to 1.8 mln bpd, the highest level since 1979, based
largely on increased production of oil overseas but additions
to its reserves from new discoveries and reserve acquisitions
did not replace all of the oil and gas produced.
    The company said that the average price for oil and gas
declined 41 pct in 1986 from the previous year sparking a 38
pct decline in its earnings from exploration and production.
    Exxon's earnings from exploration and production in 1986
fell to 3.1 billion dlrs from 4.9 billion dlrs in 1985.
    Exxon said that its principal gains in production came from
the Gulf of Mexico, Alaska, the North Sea, Malaysia and from
oil sands in Canada.
    Exxon also said that it acquired 11.2 mln acres for
expoloration spread over 10 countries including the U.S, Europe
and the Far East.
    But capital expenditures for exploration and production
were cut to 4.6 billion dlrs from 7.6 billion the previous year
and further reductions were expected in 1987.
    Exxon said that its net share of crude oil and natural gas
liquids produced from offshore fields in the North Sea reached
a new high of 422,000 bpd.
    The light, sweet crudes produced from these North Sea
fields also gave the company trading gains as Exxon was able to
sell much of this crude and replace it with cheaper, lower
quality crude oil for its refineries which have been upgraded
over the past several years.
    The trading gains and lower acquisition costs gave Exxon
more of a spread in its refinery operations and added to
earnings gains from refining and marketing.
    Exxon said earnings from refining and marketing operations
rose to nearly two billion dlrs in 1986, up from 872 mln dlrs
in 1985.
    The company said petroleum sales slipped slightly to 4.043
mln barrels per day from 4.082 mln bpd in 1985 while crude runs
rose to 3.0 mln bpd from 2.9 mln bpd the previous year.
    Exxon's refinery operations benefited from a three year 500
mln dlr upgrading program to its Baytown, Texas refinery
completed last October and an 850 mln dlr upgrading project in
Rotterdam both of which emphasize utilizing lower grade crudes
to extract higher proportions of light products.


.I 17414
.C
trade
.W
SOVIET UNION SEEN WATCHING CHINA GATT APPLICATION.
    PEKING, March 31 - China's application to join the General
Agreement on Tariffs and Trade (GATT) is seen as a test case by
the Soviet Union, which will probably demand to follow China, a
top European Community official said.
    Willy de Clercq, External Relations Commissioner of the
European Communities, told a news conference that China's
application would involve long and difficult negotiations.
    China formally applied to join GATT in July 1986 and in
February presented a memorandum backing its application, which
De Clercq said was now being studied. Questions would then be
presented to China.
    "After China, other important state-trading countries
including the Soviet Union, will probably demand accession.
China's application could be considered a test case," he said.
    He said the EC strongly backed China's application, but
others among GATT's 92 contracting parties took a tougher line.
    Among the numerous problems of a huge centrally-run economy
entering a free trade system are tariffs and reciprocity and
the expectation that China will practice an open-trade policy
without trade discrimination, de Clercq added.
    De Clercq noted the different dimensions of the Chinese
economy and those of Hungary and Yugoslavia, the two current
Socialist GATT members.
    On China's import potential, he said a foreign exchange
shortage would force China to import less this year and next
than in the past, with an emphasis on technological equipment
and capital.
    During his visit, De Clercq has met top Chinese leaders and
today signed an agreement to open a European Community
Commission office in Peking.


.I 17416
.C
earn
.W
ROCKY MOUNT UNDERGARMENT <RMUC> 4TH QTR LOSS.
    ROCKY MOUNT, N.C., March 31 -
    Shr loss 53 cts vs loss 32 cts
    Net loss 1,548,000 vs loss 929,000
    Revs 9,362,000 vs 11.3 mln
    12 mths
    Shr loss 82 cts vs profit 17 cts
    Net loss 2,408,000 vs profit 452,000
    Revs 40.9 mln vs 39.5 mln
    NOTE: full name of company is Rocky Mount Undergarment Co
Inc.


.I 17418
.C
gnp;lei;
.W
U.S. COMMERCE SECRETARY SEES HIGHER GNP GROWTH.
    WASHINGTON, March 31 - Commerce Secretary Malcolm Baldrige
said a 0.7 pct rise in February's index of leading indicators
pointed to stronger economic growth in the first half of 1987.
    In a statement commenting on the rise last month after a
0.5 pct January decline, Baldrige noted the leading index was
rising at an 8.0 pct annual rate in the six months to the end
of February.
    "Based on past relationships, that gain is consistent with
stepped up growth in real GNP during the first half of 1987,"
Baldrige said.


.I 17419
.C
trade
.W
U.S. SENATE LEADERS SEE NO TRADE WAR BREWING.
    WASHINGTON, March 31 - The Senate's Democratic and 
Republican leaders praised President Reagan for retaliating
against Japan for violating a semiconducter accord but dashed
cold water on ideas it was the first shot in a trade war.
    Senate Democratic Leader Robert Byrd and Republican leader
Bob Dole both told the Senate Reagan's decision was long
overdue and urged Japan to open its markets to U.S. goods and
stop dumping on world markets.
    Each noted in separate speeches that they saw no trade war
over the issue, despite concerns in financial markets.
    "That fear has no basis in fact," Byrd said.


.I 17420
.C
earn
.W
DYR LIQUIDATING <DYR> SETS LIQUIDATING PAYOUT.
    SCOTTSDALE, Ariz., March 31 - DYR Liquidating Corp,
formerly Dyneer Corp, said its board declared a third
liquidating dividend of one dlr per share payable to
shareholders of record on April 14 and said it will file a
certificate of dissolution on that date.
    The company said shareholders of record on that date will
acquire beneficial interests in the liquidating trust that will
be formed to hold all of the company's assets.
    It said it has asked the American Stock Exchange to suspend
trading in its common stock at the close on April 6 to ensure
settlement of all traded by April 14.
    DYR said it expects its stock to be withdrawn from
registration under the Securities Exchange Act of 1934 shortly
after April 14.
    DYR said the pay date for the dividend will be April 28.


.I 17421
.C
earn
.W
NETWORK SECURITY CORP <NTWK> YEAR NET.
    DALLAS, March 31 -
    Shr 1.24 dlrs vs 19 cts
    Shr diluted 1.11 dlrs vs 19 cts
    Net 11.9 mln vs 1,830,000
    Revs 79.3 mln vs 46.1 mln
    NOTE: 1986 net includes pretax charge 8,300,000 dlrs from
increases and reserves and writeoffs of low-yielding assets and
pretax gain 20.8 mln dlrs from sale of Multi-Family subsidiary.
 Another 3,800,000 dlrs of gain from the Multi-Family sale will
be recognized in 1987 if Multi-Family meets targeted operating
results.


.I 17424
.C
acq
.W
PEAT MARWICK, KMG MAIN HURDMAN TO COMPLETE MERGER.
    NEW YORK, March 31 - Peat Marwick and KMG Main Hurdman said
their merger will be completed tomorrow.
    The new firm, to be known as KPMG Peat Marwick, will rank
among the largest public account and consulting firms in the
U.S. based on combined 1986 revenues of 1.35 billion dlrs,
1,825 partners and a total staff of 16,500 in 136 offices.
    KPMG was created as part of the merger announced last
September of Peat Marwick International Klynveld Main Goerdeler
to form Klynveld Peat Marwick Goerdeler.


.I 17427
.C
money-fx;interest;
.W
DUTCH MONEY MARKET DEBT EASES IN WEEK.
    AMSTERDAM, March 31 - Loans and advances from the Dutch
Central Bank to the commercial banks fell 1.01 billion guilders
to 9.5 billion guilders in the week ending March 30, the Bank's
weekly return showed.
    Dealers said payments by the Dutch state, partly in the
form of civil service wages, had outweighed payments to the
State, causing the money market deficit to ease.
    The Treasury's account with the Bank dropped 960 mln
guilders to 6.5 billion guilders.
    Liabilities in gold or foreign currency rose 200 mln to
11.9 billion guilders.
    Dealers said it was more likely that the alteration in this
item on the weekly return indicated normal commercial foreign
exchange business rather than intervention by the Central Bank.
     The Bank itself does not disclose information on
intervention.
    Seasonal variation brought bank notes in circulation up 190
mln guilders to 29.7 billion guilders.
    Total gold and currency reserves rose 173 mln guilders to
56.4 billion guilders.
    Call money and period rates were barely changed in the
week. Today all were traded at 5-3/8 to 5-1/2 pct.


.I 17431
.C
acq
.W
BORG-WARNER <BOR> EXAMINING GAF <GAF> PROPOSAL.
    CHICAGO, March 31 - Borg-Warner Corp in a statement said it
has received GAF Corp's 46 dlrs a share acquisition proposal
and will have no comment until its board of directors has had a
chance to examine it thoroughly.


.I 17432
.C
earn
.W
CRI INSURED II <CII> ESTIMATES DIVIDENDS.
    ROCKVILLE, Md., March 31 - CRI Insured Mortgage Investments
II Inc said it expects to distribute about 1.55 to 1.65 dlrs
per share from operations for all of 1987 and about 1.68 to
1.75 dlrs including the proceeds of the gain from the sale of
the Brighton Meadows mortgage through January 31.
    The company today paid a dividend of 1.1646 dlrs per share.
 Its first two quarterly payments, in September and December,
were 42.5 cts each.
    CRI said it has not yet declared a distribution on the Park
Meadows loan disposition.


.I 17433
.C
alum
.W
LME LISTS BRAZILIAN ALUMINIUM BRAND.
    LONDON, March 31 - The London Metal Exchange (LME) has
listed the aluminium brand "CBA' produced by Cia Brasileira de
Aluminio at its Mairinque, Sao Paulo, plant.
    The brand will constitute good delivery from April 1, the
LME said.


.I 17434
.C
coffee
.W
GUATEMALA TO HOST OTHER MILDS COFFEE MEETING.
    LONDON, March 31 - Guatemala will host a meeting of other
milds coffee producers probably in May to discuss basic export
quotas, the Guatemalan delegate to the International Coffee
Organization, ICO, said.
    No firm date has been set for the talks, Ambassador Rene
Montes told reporters at the ICO executive board meeting here.
    Producer countries Brazil, Colombia, and a member of
OAMCAF, the African and Malagasy Coffee Organization, may also
be invited for consultation, he said.
    ICO producers and consumers could not agree on how to
calculate export quota shares at a recent council meeting here.
    Other milds coffee producers include Costa Rica, Dominican
Republic, Ecuador, El Salvador, Guatemala, Honduras, India,
Mexico, Nicaragua, Papua New Guinea, and Peru.


.I 17435
.C
acq
.W
AUDIO/VIDEO <AVA> TO GET EXPENSES FROM DIXONS.
    DAYTON, Ohio, March 31 - Audio/Video Affiliates Inc said it
will receive an undisclosed amount from <Dixons Group PLC> in
connection with the termination of Cyacq Corp's 92.50 dlr per
share tender offer for Cyclops Corp <CYL>.
    The company said the amount from Dixons is in lieu of
reimbursement expenses for the Cyacq tender.  Citicorp <CCI>
was the other partner in Cyacq.
    The payment was in connection with Dixons' previously
-announced agreement to increase its tender price for Cyclops
to 95.00 dlrs per share, Cycacq's ending of its competing bid
and the ending of litigation between the parties.


.I 17436
.C
acq
.W
REPUBLIC <RSLA> TO MERGE WITH PIONEER SAVINGS.
    MILWAUKEE, Wis., March 31 - Republic Savings and Loan
Association and <Pioneer Savings> of Racine, Wis., said they
have signed a definitive agreement to combine the two
associations into a publicly held holding company to be called
Republic Capital Group Inc.
    The associations said they would form the company by
exchanging Republic's stock for shares in the holding company,
which Pioneer savers could purchase when Pioneer converts from
mutual to stock ownership.
    The associations added that they would remain independent,
but wholly owned, units of the holding company.
    The associations said they would continue to do business
using their present names and management.
    The combination of Republic's 459 mln dlrs in assets with
Pioneer's 125 mln dlrs would make the new holding company the
fifth largest savings and loan organization in Wisconsin, they
said.
    The associations said the move is subject to approval by
the Federal Home Loan Bank Board and the Wisconsin Commissioner
of Savings and Loan, as well as Republic's shareholders and
Pioneer's depositors.


.I 17438
.C
earn
.W
<NEW HARDING GROUP INC> 1ST QTR JAN 31 NET.
    BRANTFORD, Ontario, March 31 -
    Shr 19 cts
    Net 653,000
    Revs 45.6 mln
    Note: Prior results not given due to November, 1986
acquisition of 56 pct stake in Continuous Colour Coat Ltd


.I 17439
.C
acq
.W
BROUGHER <BIGI> TO SELL 40 PCT OF SUBSIDIARY.
    GREENWOOD, Ind., March 31 - Brougher Insurance Group Inc
said it plans to sell 40 pct of the stock of its subsidiary,
Intercontinental Corp, for one mln dlrs to three European
insurance companies.
    The parent company said it signed a letter of intent to
sell the stock to <WASA Europeiska Forsakrings AB> of Sweden,
<Europeiske Reiseforsikring A/S> of Norway, and <Europeiska
Rejseforsikrings A/S> of Denmark.
    Brougher said it expects to realize a net after-tax gain of
approximately 330,000 dlrs, or 12 cts per share, from issuing
stock of Intercontinental.


.I 17440
.C
ipi
.W
CANADA INDUSTRY PRICES FALL 0.2 PCT IN MONTH.
    OTTAWA, March 31 - The Canadian industrial product price
index, base 1981, fell 0.2 pct in February after rising 0.2 pct
in January, Statistics Canada said.
    "A significant part of this monthly decrease was
attributable to the impact of the increase of the Canadian
dollar on prices for wood pulps, newspaper, aluminum, nickel
and motor vehicles," the federal agency said.
    On a year-over-year basis, the index was down 0.8 pct,
little change from the 0.9 pct decline posted in January.


.I 17441
.C
wheat;grain;
.W
KANSAS LEGISLATOR PREDICTS EEP WHEAT TO SOVIETS.
    WASHINGTON, March 31 - Rep. Pat Roberts, R-Kan., predicted
the Reagan administration within the next ten days to two weeks
will offer subsidized wheat to the Soviet Union under the
Export Enhancement Program, EEP.
    Roberts made the comment at a press conference held by
Republican members of the House Agriculture Committee.
    He did not say on what he based the comment, but an aide
said Roberts had been in touch with top Republican officials
recently.
    The possibility of an expansion of EEP to include wheat to
Moscow has been rumored for some time, and some industry
sources believe a decision on the issue will be made by the
Reagan administration before Secretary of State George Shultz
goes to Moscow in April.


.I 17442
.C
earn
.W
SUN CITY INDUSTRIES <SNI> SEES HIGHER NET.
    MIAMI, March 31 - Sun City Industries Inc said preliminary
unaudited results of ongoing operations for the fiscal year
ended January 31, 1987 are expected to rise over 580 pct to
700,000 dlrs or 70 cts per share from the 125,313 dlrs or 12
cts reported last year.
    Total net income is expected to reach 2.4 mln dlrs, which
includes 1.7 mln dlrs of net income realized from sale of
property. The combination will result in record earnings of
2.40 dlrs a share, the wholesale distributor and processor of
eggs said.


.I 17445
.C
trade
.W
******YEUTTER SAYS STOCK MARKET OVERREACTED TO JAPAN TRADE DISPUTE.
Blah blah blah.

.I 17446
.C
ship
.W
ST LAWRENCE SEAWAY OPENS SHIPPING SEASON.
    MONTREAL, March 31 - The St Lawrence Seaway said the first
ship of the season passed through the St Lambert lock here this
morning, officially opening the 2,300-mile-long waterway's 1987
shipping season.
    The seaway has said it expects little increase in freight
levels this year from last year when it moved 37.6 mln tonnes
of freight between Montreal and Lake Ontario and 41.6 mln
tonnes on the Welland Canal, which links Lake Erie and Lake
Ontario. The canal is scheduled to open tomorrow.
    Officials expect the waterway to lose nine to ten mln
Canadian dlrs this year, about the same as the estimated
deficit for fiscal 1986-87, which ends today.


.I 17447
.C
acq
.W
ACTON <ATN> TO SELL UNIT FOR GAIN.
    ACTON, Mass., March 31 - Acton Corp said it has agreed to
sell its five Michigan cable television systems to Wisconsin
Cablevision Inc for about 9,500,000 dlrs, resulting in a gain
of about six mln dlrs.
    The company said the sale is subject to review by local
authorities.  The systems have about 7,500 subscribers.
    Acton said proceeds will be used to retire bank debt.
    The company said it has also entered into a 15.5 mln dlr
bank credit agreement that will allow it to complete the
prepayment of all its obligations to members of its present
bank syndicate.
    The company said the new credit will also allow it to
prepay some other debt and redeem its Class C Series Two
preferred stock.
    It said the new facility has allowed it to take full
advantage of an early payment discount of about 13 mln dlrs in
principal and interest which was negotiated with its banking
syndicate in connection with an April 1986 financial
restructuring.


.I 17448
.C
sugar
.W
BEGHIN-SAY SAYS SUGAR OFFER TO EC STILL STANDS.
    PARIS, March 31 - A plan by European producers to sell
854,000 tonnes of sugar to European Community intervention
stocks still stands, Andrea Minguzzi, an official at French
sugar producer Beghin-Say, said.
    Last week Beghin-Say president Jean-Marc Vernes said a
possible settlement of a row with the EC would lead producers
to withdraw their offer, which was made as a protest against EC
export licensing policies.
    The EC policy is to offer export rebates, which fail to
give producers an equivalent price to that which they would get
by offering sugar into intervention stocks, Vernes said.
    But Minguzzi said the offer was a commercial affair and
that producers had no intention of withdrawing the sugar offer
already lodged with intervention boards of different European
countries. He said final quality approval for all the sugar
offered could come later this week. Some 95 pct had already
cleared quality specifications.
    The EC can only reject an offer to sell into intervention
stocks on quality grounds. Minguzzi added that under EC
regulations, the Community has until early May to pay for the
sugar. He declined to put an exact figure on the amount of
sugar offered by Beghin-Say, but said it was below 500,000
tonnes.


.I 17449
.C
earn;crude;
.W
EXXON <XON> GAINS DUE TO STREAMLINED OPERATIONS.
    NEW YORK, March 31 - Exxon Corp said that 1986's 15 pct
increase in earnings per share to 7.42 dlrs a share were
partially based on its streamlined operations which compensated
for the weakness in its exploration earnings and the lowest
crude oil prices in a decade.
    Exxon said economies introduced in its operations from
reductions in personnel and other savings, such as reductions
in exploration expenses, were reflected in an 880 mln dlr
reduction in consolidated operating costs from 1985.
    The company said its more efficient operations would be
necessary to offset more adverse oil market conditions ahead.
    The company also said that its share repurchase plan
contributed to the per share gains over 1985.
    In a breakdown of costs, Exxon said that operating expenses
slipped to 9.2 billion dlrs in 1986 from 9.7 billion dlrs the
previous year and exploration expenses, including dry holes,
slipped back to 1.2 billion dlrs from 1.5 billion dlrs over the
same period as the number of wells drilled was lower.
    The company was also able to use lower interest rates to
reduce its interest expenses to 614 mln dlrs in 1986 from 627
mln dlrs the previous year.
    Exxon said that the ratio of debt to capital was cut by 1.6
pct in 1986 from the previous year to 19 pct.
    On December 31, 1986 Exxon's total debt of 7.87 billion
dlrs was down slightly from the previous year's 7.9 billion
dlrs and long term debt stood at 4.3 billion dlrs, down from
4.8 billion dlrs in 1985.
    Exxon's policy of repurchasing shares on the market for its
treasury also contributed to earnings results by a reduction of
shares to 722.6 mln shares from 754.1 mln shares the previous
year.


.I 17451
.C
trade
.W
U.S. STOCK MARKET OVERREACTS TO TARIFFS - YEUTTER.
    WASHINGTON, March 31 - U.S. Trade Representative Clayton
Yeutter said the stock market overreacted to a U.S. decision
last week to proceed with tariffs on some Japanese computer
products.
    Speaking to reporters prior to testifying at a House
Agriculture Committee hearing, Yeutter said it is "difficult to
comprehend" that a trade decision affecting only 300 mln dlrs
in goods caused the stock market collapse yesterday.
    "I have a hunch a lot of other things were involved in that
(stock market fall), including simple profit-taking," Yeutter
said.
    Yeutter said Japan would be sending a senior official from
its trade ministry to Washington next week for talks on the
computer chip dispute.
    "We will be glad to have him here, but that's not going to
affect a decision that's already been made," Yeutter said.
    The decision announced last week would apply higher tariffs
on a range of Japanese products in retaliation for the alleged
failure of Tokyo to honor an agreement with the U.S. on
semiconductor trade.


.I 17453
.C
wheat;grain;corn;
.W
WEATHER HURTING YUGOSLAV WHEAT - USDA REPORT.
    WASHINGTON, March 31 - Unfavorable late winter weather
conditions in the main wheat growing areas of Yugoslavia
indicate dimmed prospects for the emerging winter wheat crop,
the U.S. embassy's agricultural officer in Belgrade said.
    The officer, who travelled through an area from Belgrade to
Subotica, said in a field report dated March 27 the wheat crop
had been set back at least three weeks because of a cold spell
that followed a period of warm weather.
    He said unseasonably warm weather in late February that
brought the wheat crop out of winter dormancy early was
followed by three weeks of unusually cold weather.
    Damaging effects were seen in the fields, most of which
show stands with a yellow-brown cast indicating extensive leaf
and possible root damage from repeated freezings, he said.
    The report said that since much of the early growth in
February was from late seeding rather than from normal
development, his view was that the damage may be more extensive
than some local observers say.
    The most seriously affected fields were late-seeded fields
on normal maize soils. Stands in these fields were thin and
chances of recovery appeared less favorable, he said.
    However, he said soil moisture conditions were favorable
and many of the fields had already been top-dressed, which
would aid recovery.


.I 17454
.C
acq
.W
USX <X>, CONSOLIDATED NATURAL <CNG> END TALKS.
    DALLAS, March 31 - USX Corp's Texas Oil and Gas Corp
subsidiary and Consolidated Natural Gas Co have mutually agreed
not to pursue further their talks on Consolidated's possible
purchase of Apollo Gas Co from Texas Oil.
    No details were given.


.I 17455
.C
earn
.W
******ARVIN INDUSTRIES SEES FLAT 1ST QTR PER SHARE NET COMPARED WITH 59 CTS LAST YEAR.
Blah blah blah.

.I 17457
.C
earn
.W
ROCKY MOUNT <RMUC> EXPECTS PROFIT IN FIRST QTR.
    ROCKY MOUNT, N.C., March 31 - Hal Weiss, chairman,
president and chief executive officer, of Rocky Mount
Undergarment Co Inc, said he expects the company to show a
profit for the first quarter fiscal 1987.
    Weiss said sales for 1987 have been strong following a net
loss of 1,548,000 dlrs, or 53 cts a share, for the fourth
quarter of fiscal 1986. The company reported a net loss for the
year of 2,408,000 dlrs, or 82 cts a share.
    Rocky Mount recorded net income of 248,000 dlrs, or eight
cts per share, for the first quarter of fiscal 1986.
    Weiss attributed the poor year to problems involving
management, manufacturing operations, financial condition and
credibility among its suppliers.
    Weiss predicted the pattern of quarterly lossses which
characterized 1986 will be reversed and 1987 will see the
company return to profitability.


.I 17458
.C
acq
.W
CHUBB CORP <CB> COMPLETES ACQUISITION.
    NEW YORK, March 31 - The Chubb Corp said it completed the
previously-announced merger of its subsidiary with and into
Sovereign Corp <SOVR>, a life insurance holding company.
    Under the terms of the merger, Sovereign stockholders
wil receive, in a tax free exchange, 0.1365 of a share of Chubb
common stock for each share of Sovereign held, the company
said. 
    This equals 9.11 dlrs per share of Sovereign stock based on
the closing price of Chubb common stock on March 30.
   


.I 17459
.C
trade
.W
ENVOY ADVISES NAKASONE TO PREPARE FOR U.S. VISIT.
    TOKYO, March 31 - The Japanese ambassador to the U.S.
Suggested that Prime Minister Yasuhiro Nakasone make efforts to
present "advanced' proposals on trade issues when he visits
Washington next month.
    Ambassador Nobuo Matsunaga made the recommendation at a
meeting with Nakasone, Kyodo News Service said.
    Matsunaga also advised that the prime minister should be
prepared to discuss U.S.-Japan economic issues.
    Matsunaga cited issues such as a U.S.-Japan micro chip
trade pact, foreign access to the Kansai international airport
project, and a new international telecommunications firm.
    Matsunaga returned on Sunday to report to Japanese leaders
on recent U.S. Developments over trade, in preparation for
Nakasone's visit to Washington, April 29 to May 5.
    Kyodo quoted Nakasone as telling reporters after meeting
the envoy, "I entirely accept what ambassador Matsunaga
recommended." Nakasone did not elaborate.
    The U.S.-Japan trade dispute intensified last week when
President Ronald Reagan said the U.S. Would impose heavy
tariffs on Japanese imports in retaliation against alleged
Japanese breach of the computer chip trade pact.
    Meanwhile, Nakasone's ruling Liberal Democratic Party (LDP)
is to consider measures to boost imports and open up the
Japanese market, such as government purchase of supercomputers
and expanding foreign access to the Kansai airport project,
party sources said.
    The LDP international economic affairs council was
responding to Nakasone's request for measures to reduce Japan's
increasing trade surpluses with the U.S. And Europe, they said.


.I 17461
.C
wheat;grain;
.W
LYNG HAS NO COMMENT ON WHEAT SUBSIDY TO SOVIETS.
    WASHINGTON, March 31 - U.S. Agriculture Secretary Richard
Lyng declined to confirm statements made today by a farm state
congressman that the United States will offer subsidized wheat
to the Soviet Union within the next 10 days to two weeks.
    When asked to clarify comments by Rep. Pat Roberts of
Kansas that the administration would soon offer Export
Enhancement wheat to the Soviet Union Lyng said, "well it won't
be today," and then added, "we have no official comment one way
or the other."
    Lyng would not comment on whether a wheat subsidy offer to
the USSR is under more active consideration at the USDA, saying
that any remarks by him would be tantamount to an official
announcement and could be construed inappropriately.


.I 17462
.C
earn
.W
NEW HARDING GROUP SETS FIRST PAYOUT SINCE 1978.
    BRANTFORD, Ontario, March 31 - <New Harding Group Inc>,
formerly Harding Carpets Ltd, said it declared its first
dividend since fiscal 1978 of 10 cts per subordinate voting
share and multiple voting share, pay April 15, record April 8.
    The company said the dividend establishes a new policy for
the payment of quarterly dividends.
    New Harding earlier reported profit of 653,000 dlrs or 19
cts a share for first quarter ended January 31. It said prior
results were not comparable due to the company's November, 1986
acquisition of a 57 pct stake in Continuous Colour Coat Ltd.


.I 17464
.C
acq
.W
LAROCHE DROPS CONDITION TO NECO <NPT> OFFER.
    NEW YORK, March 31 - Investor David F. Laroche said he has
decided to drop the condition to his tender offer for 170,000
shares of NECO Enterprises Inc at 26 dlrs each that at least
170,000 shares be tendered.
    He said he has extended the expiration of the offer until
April 14.
    Thorugh March 27, he said 45,696 NECO shares had been
tendered.
    Laroche said he may obtain a short-term loan of up to one
mln dlrs from Amoskeag Bank to help finance the purchase of
shares under the offer, bearing interest of up to nine pct.


.I 17465
.C
crude
.W
CHEVRON <CHV>, NIPPON OIL FORM JOINT VENTURE.
    SAN FRANCISCO, March 31 - Chevron Corp said its Chevron
U.S.A. Inc unit and Tokyo-based Nippon Oil Co Ltd agreed to
conduct a joint-venture oil exploration and development program
on selected Chevron leaseholds in the United States.
    About 50 onshore and offshore exploratory wells will be
drilled under the agreement and Chevron will be the operator of
the project and pay some costs, the company said.
    It said Nippon will contribute an initial investment of
more than 100 mln dlrs.
    The Japanese government will also participate in the
venture by providing financing to Nippon through the Japanese
Oil Corp, Chevron said.
    It said drilling will begin during the second quarter.
    Properties to be evaluated are located in California,
Colorado, Kansas, Oklahoma, Mississippi, Montana, North Dakota,
Texas, Utah, and Wyoming, along with Federal Outer Continental
Shelf leases offshore Southern California and in the Gulf of
Mexico, Chevron said.


.I 17467
.C
acq
.W
TELECAST <TCST> COMPLETES ACQUISITION FINANCING.
    FRASER, Mich., March 31 - Telecast Inc said it closed on
the financing portion of its previously-announced acquisition
of approximately 14,600 hotel rooms from <Dynavision Inc>.
    The three mln dlr financing package was provided by Sanwa
Business Credit Corp, a subsidiary of <Sanwa Bank Ltd> of
Japan, the company said.


.I 17468
.C
gas
.W
NEW GASOLINE GRADE TO RAISE U.S. REFINING COSTS.
     SAN ANTONIO, March 31 - A new grade of unleaded gasoline
now being test marketed will increase refining costs when
refiners can least afford it, according to officials attending
the National Petroleum Refiners Association conference here.
    The new grade of unleaded gasoline has an octane level of
89 compared with over 90 for super unleaded and 87 for regular
unleaded gasoline.
     Amoco Corp <AN> has test-marketed the new mid-grade
gasoline and hopes to sell it on a regular basis in the South,
East and Midwest by the beginning of June, according to Paul
Collier, executive vice president of marketing.
    Phillips Petroleum <P> expects to begin marketing the new
89 octane unleaded gasoline in May, sources said.
    Converting current refinery operations to produce the 89
octane unleaded gsoline could cost hundreds of millions of
dollars per refinery but that depends on the present capacity
and intensity of the refinery, said Amoco's Collier.
    But not all oil company's welcome the introduction of
another grade of unleaded gasoline.
    "Three grades are not warranted," said Henry Rosenberg,
chairman of Crown Central Petroleum <CNP>. "Refiners will have
to upgrade again," he added.
    "An investment will have to be made," said Archie Dunham,
executive vice president of petroleum products at Conoco, an
operating subsidiary of DuPont Corp <DD> in order to upgrade
refinery operations.


.I 17469
.C
earn
.W
CHARTER POWER SYSTEMS INC <CHP> 4TH QTR JAN 31.
    PLYMOUTH MEETING, Pa., March 31 -
    Shr profit 18 cts vs loss 21 cts
    Net profit 766,000 vs loss 510,000
    Sales 32.4 mln vs 25.5 mln
    Year
    Shr profit 71 cts vs loss 23 cts
    Net profit 2,337,000 vs loss 747,000
    Sales 132.1 mln vs 119.6 mln
    NOTE: Prior year results pro forma for acquisition of C and
D Power Systems divisions of Allied-Signal Inc <ALD>.


.I 17475
.C
earn
.W
RENAULT <RENA.PA> YR ENDED DEC 31 1986.
    PARIS, March 31 -
    Consolidated net loss 5.54 billion francs vs loss 10.93
billion.
    Consolidated net turnover 131.06 billion francs vs 122.14
billion.
    Consolidated debt 54.3 billion francs vs 61.9 billion.
    Net loss car making 4.14 billion francs vs loss 10.99
billion.
    Net loss industrial vehicles 990 mln vs loss 1.54 billion.
    Note - The company said the consolidated net loss was after
costs and provisions for restructuring of 3.90 billion francs,
which includes exceptional items arising from the planned sale
of its stake in American Motors Corp <AMO> to Chrysler Corp
<C>.
    Full company name is Regie Nationale des Usines Renault.


.I 17477
.C
wheat;grain;
.W
TUNISIA TENDER EXPECTED FOR 100,000 TONNES WHEAT.
    PARIS, March 31 - Tunisia is expected to tender shortly for
100,000 tonnes of soft wheat for shipment between April and
June, covered by COFACE export credits, trade sources said.
    Over 300,000 tonnes of French soft wheat have been sold to
Tunisia since the beginning of the 1986/87 campaign, of which
225,000 to 250,000 tonnes have already been shipped, they said.


.I 17478
.C
earn
.W
PIZZA INN INC <PZA> 4TH QTR LOSS.
    DALLAS, March 31 -
    Shr loss 48 cts vs loss 35 cts
    Net loss 1,587,000 vs loss 1,063,000
    Revs 45.3 mln vs 50.9 mln
    Avg shrs 3,322,032 vs 3,054,457
    Year
    Shr profit three cts vs loss 19 cts
    Net profit 112,000 vs loss 587,000
    Revs 211.2 mln vs 199.3 mln
    Avg shrs 3,220,163 vs 3,038,361
    NOTE: Net includes tax credits 1,411,000 dlrs vs 929,000
dlrs in quarter and tax provision 689,000 dlrs vs credit
1,288,000 dlrs in year.
    1986 year revenues include 18.7 mln dlrs from gain on sale
of Quality Sausage Co Inc.
    1986 net includes costs of 900,000 dlrs in quarter and
1,200,000 dlrs in year from proposed merger.


.I 17479
.C
money-fx
.W
******TREASURY'S BAKER SAYS U.S. REMAINS PREPARED TO FOSTER EXCHANGE RATE STABILITY.
Blah blah blah.

.I 17480
.C
earn
.W
ARVIN <ARV> SES FLAT 1ST QTR RESULTS.
    COLUMBUS, Ind., March 31 - Arvin Industries Inc said higher
interest costs from borrowings to make acquisitions will
produce earnings flat with last year's 59 cts a share results.
    Arvin said it might earn 57 cts to 60 cts a share in the
quarter.
    These results also reflect the seasonally low sales pattern
of automotive replacement parts in that period.
    Arvin forecast about 85 cts a share net in the second
quarter compared with 68 cts in last year's period.
    The company said revenues for full year 1987 it will exceed
1.4 billion dlrs, net earnings will increase more than 30 pct,
while per share earnings should increase 12 to 18 pct.
    Arvin's 1986 revenues were 995.6 mln, net reached 41.2 mln
and earnings per share 2.46 dlrs.
    It based these forecasts due to the addition of Schrader
Automotive Inc and Maremont Corp, both acquired last year.
    Chairman James Baker said 1987 quarterly comparisons will
not conform to historical patterns for the year because the
acquisitions of Schrader and Maremond occurred in different
quarters.
    He said Arvin will complete the purchase of Systems
Research Laboratories in the second quarter of 1987. This will
also increase revenues.


.I 17482
.C
trade
.W
******TREASURY'S BAKER SEES 15-20 BILLION DLR U.S. TRADE DEFICIT REDUCTION THIS YEAR.
Blah blah blah.

.I 17483
.C
crude
.W
******TREASURY'S BAKER SAYS REAGAN UNLIKELY TO ALTER OPPOSITION TO OIL IMPORT FEE.
Blah blah blah.

.I 17484
.C
interest
.W
******FED SETS 1.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 17486
.C
earn
.W
CORTRONIC CORP <CTRN> YEAR LOSS.
    RONKONKOMA, N.Y., March 31 -
    Shr loss 23 cts vs loss 15 cts
    Net loss 1,121,664 vs loss 640,862
    Sales 37,485 vs nil
    NOTE: Company in development stage.


.I 17487
.C
interest
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 31 - The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-3/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 17489
.C
wheat;grain;
.W
WINTER WEATHER HURTS EAST GERMAN GRAIN - USDA.
    WASHINGTON, March 31 - Shifts from mild to very cold
weather in East Germany damaged winter barley and late sown
winter wheat in central regions and barley north of Berlin, the
U.S. agricultural officer in East Berlin said.
    In a field report, the officer said indications were that
winter kill might well be more than 100,000 hectares compared
with 38,000 last year.
    He said the damage was probably more limited in southern
and central regions and most widespread in the north.
    Damage was most severe on plants above the ground where
little or no snow cover was present, he added.
    The officer said heavy frosts at night followed by sunshine
during the day led to some heaving, particularly for well
developed plants and for winter barley.
    Furthermore, as the ground surface thawed, some standing
water occurred in the fields.
    The officer said repairing damage will probably call for
special measures this spring in fields with damaged plants and
where stands are thin. Harrowing, as well as well-timed
applications of nitrogen, will be necessary, he added.


.I 17490
.C
earn
.W
WATSO INC <WSOA> SETS REGULAR PAYOUTS.
    COCONUT GROVE, Fla., March 31 -
    Qtrly Class A div five cts vs five cts prior
    Qtrly Class B div four cts vs four cts prior
    Pay May 29
    Record April 30
    NOTE: company changed date for its annual shareholders'
meeting to June 24 from June 15 due to a scheduling conflict.


.I 17491
.C
earn
.W
EATERIES INC <EATS> YEAR NET.
    OKLAHOMA CITY, March 31 -
    Shr profit 10 cts vs loss two cts
    Net profit 140,332 vs loss 21,290
    Revs 4,202,305 vs 1,692,976
    Avg shrs 1,400,945 vs 1,106,500


.I 17492
.C
money-fx
.W
TREASURY'S BAKER SAYS U.S. BACKS STABILITY.
    WASHINGTON, March 31 - Treasury Secretary James Baker said
the United States and the five other industrialized nations
signing the recent Paris Accord remain committed to fostering
the exchange rate at around current levels.
    But he declined to comment on what he believed to be an
appropriate level of the dollar in world markets.
    "I'm not going to comment on that because invariably the
exchange markets read either more or less into my remarks than
I might intend," he said in response to a question from the
House Appropriations Committee.
    Baker said the six nations participating in the Paris
meeting in February had "acknowledged that the currencies are
within ranges that are broadly consistent with the economic
fundamentals and we and the others as well remain prepared to
cooperate closely to foster stability in exchange rates around
those levels."


.I 17493
.C
acq
.W
MAY <MA> TO SELL SYCAMORE DIVISION.
    ST. LOUIS, March 31 - The May Department Stores Co said it
has signed an agreement to sell its Sycamore Specialty Store
Division to an investment group that includes Syacmore senior
management.
    May said it expects to close the deal, which includes the
entire division and its 1,000 employees, in April.
    Sycamore has 111 women's apparel stores in Indiana, Ohio,
Illinois, Kentucky and Michigan, May said.
    May added that the Indiana National Bank of Indianapolis
provided a portion of the deal's financing.


.I 17495
.C
earn
.W
CPL REAL ESTATE <CNTRS> CUTS REGULAR PAYOUT.
    DAVENPORT, Iowa, March 31 -
    Qtrly div 26 cts vs 27 cts prior
    Payable April 27
    Record April 10
    NOTE: full name of company is cpl real estate trust
investment.
 


.I 17497
.C
earn
.W
NATIONAL BANCSHARES <NBCT> TO HAVE GAIN ON SALE.
    SAN ANTONIO, March 31 - National Bancshares Corp of Texas
said it has completed the previously-announced sale of 90,000
credit card accounts of to Lomas and Nettleton Financial Corp
<LNF> for 45.6 mln dlrs, resulting in a gain of 5,800,000 dlrs.


.I 17498
.C
grain;corn;
.W
TRADERS EXPECT SHARP DROP IN U.S. CORN ACREAGE.
    CHICAGO, March 31 - Grain trade analysts expect a sharp
drop in corn acreage, with most expecting a more modest decline
in soybeans, in the U.S. Agriculture Department, USDA,
plantings intentions report due out at 1500 est (2100 gmt).
    The average trade guess for 1987 planted corn acreage was
66.06 mln acres, ranging from 60.7 to 69.0 mln, all well below
the 76.67 mln planted last year due to improved incentives by
the USDA for farmers to retire acres. Corn acres totalled only
60.22 mln in 1983, when the PIK program was introduced.
    The average soybean planted acreage quesstimate was 59.49
mln, ranging from 58.0 to 63.0 mln and compared with the 61.48
mln planted in 1986
    With substantial grain stocks, less interest was expressed
among analysts in the USDA stocks report also scheduled today.


.I 17499
.C
veg-oil
.W
USDA'S AMSTUTZ CONFIDENT OF EC OILS TAX DEFEAT.
    WASHINGTON, March 31 - U.S. Agriculture Undersecretary
Daniel Amstutz said he was confident that a European Community,
EC, proposal to tax vegetable and marine oils and fats would
not be approved by the Community.
    Asked by Reuters if he was confident the plan eventually
would be defeated, Amstutz said, "Yes, I am, but I also know
that things like this take constant vigilance."
    The USDA official said the EC Council of Ministers held an
ad hoc meeting yesterday.
    Commenting on that meeting, he said, "So far, so good."
    Yesterday British Farm Minister Michael Jopling said enough
EC states appeared to be opposed to the proposals by the
commission for a 330 European Currency Unit a tonne tax on
vegetable oils, fats and marine oils for the moves to be
defeated.


.I 17502
.C
earn
.W
CPL REAL ESTATE <CNTRS> SEES LOWER DIVIDENDS.
    DAVENPORT, Iowa, March 31 - CPL Real Estate Trust
Investment said its regular quarterly dividend distribution
will be lower than its present 26 cts per share, and could be
significantly lower starting with the third quarter of 1987.
    The company, which lowered the payout from 27 cts to 26 cts
this current quarter, said it did not know how low the payout
would go.
    The company said the reason for the cutbacks was because it
would not be purchasing a property it had anticipated, and
alternative investments will produce significantly lower yields
than anticipated.



.I 17503
.C
acq
.W
HANSON TRUST <HAN> SELLS UNIT.
    WHITE PLAINS, N.Y., March 31 - Reichhold Chemicals Inc said
it is part of a group that has purchased PCR Inc from Hanson
Trust PLC's SCM Corp subsidiary.
    It said other group members include Jacksonville, Fla.,
businessman Jack C. Demetree and managers of PCR.
    Reichhold said it made a "modest" cash investment.  PCR
makes high-performance materials for a variety of industries.


.I 17505
.C
earn
.W
AMERICAN RECREATION CENTERS INC <AMRC> 3RD QTR.
    SACRAMENTO, Calif, March 31 -
    Shr 13 cts vs 17 cts
    Net 553,000 vs 728,000
    Revs 6.9 mln vs 7.5 mln
    Nine months
    Shr 17 cts vs 18 cts
    Net 732,000 vs 776,000
    Revs 18.5 mln vs 18.2 mln
    NOTE:Share earnings reflect 5-for-4 stock split effective
July 31.


.I 17506
.C
crude
.W
TREASURY'S BAKER SEES REAGAN OPPOSING OIL TAX.
    WASHINGTON, March 31 - Treasury Secretary James Baker told
the House Appropriations Committee that he believes the
president remains opposed to an oil import fee.
    He said Reagan last year rejected the idea and he added:
    "In my personal view he is not likely to change his thinking
on that."
    He said Reagan last year opposed the idea because the
energy industry was divided on the issue, a tax would require a
new bureacracy to administer and the resulting higher energy
prices would harm U.S. competitiveness.


.I 17507
.C
wheat;grain;
.W
FRENCH MARKET TALK OF SYRIAN WHEAT PURCHASES.
    PARIS, March 31 - Syria may have bought 80,000 tonnes of
French soft wheat, some traders here said.
    But others said it may instead have given payment
guarantees to allow for the shipping of an old contract to go
ahead.
    Syria has bought around 320,000 tonnes of soft French wheat
since the beginning of the 1986/87 campaign, of which only
121,000 tonnes had been exported by the end of last month.
    The country also bought around 30,000 tonnes of EC soft
wheat 12 days ago at 80 to 81 dlrs a tonne, fob, they said.


.I 17508
.C
trade
.W
TREASURY'S BAKER SEES SMALLER TRADE DEFICIT.
    WASHINGTON, March 31 - Treasury secretary James Baker
predicted the U.S. trade deficit would decline 15-20 billion
dlrs this year.
    However, he acknowledged signs were still lacking on such a
decline.
    "We think we are beginning to see changes," he told the House
Appropriations Committee.
    "It has begun to level off (but) we don't see it beginning
to go down yet," he told the panel.


.I 17509
.C
money-fx
.W
BANGEMANN CALLS FOR CURRENCY CALM.
    HANOVER, March 31 - West German Economics Minister Martin
Bangemann urged a halt to the talking down of the dollar by
both official and private institutions in the U.S., Saying calm
was needed on the foreign exchanges.
    Speaking at the opening of the 40th Hanover Industry Fair,
Bangemann said radical changes in foreign exchange parities had
left their mark on exports and investments. He added that
without these external difficulties, West Germany's economy
would have grown by 3.5 pct last year instead of the 2.5 pct
reported.
    Bangemann said he could not deny that the economic climate
in West Germany had cooled, but he stressed the country was not
in a downtrend.
    The minister also criticised state subsidies, which he said
mainly favoured large companies and created a tax burden for
smaller and medium sized firms.
    Bangemann referred specifically to subsidies in the steel
industry, which he said had to be fought with all legal means
when they did not correspond to European Community guidelines
on grants.
    He added that in light of the declining demand for steel
capacities had to be adjusted, saying the Bonn government would
not successfully be able to stand in the way of any change in
this industry.
    Bangemann also spoke out against protectionism and called
for more competition, citing as an example the Federal Post
Office.
    The Post Office enjoys a monopoly in West Germany,
especially as far as deciding who is able to provide
telecommunications equipment.


.I 17510
.C
acq
.W
NECO <NPT> BIDDER EXTENDS TENDER OFFER.
    WASHINGTON, March 31 - Investor David LaRoche said he has
extended his cash offer to buy 170,000 shares of NECO
Enterprises Inc at 26 dlrs each until April 14. The tender
offer was to have expired yesterday.
    In a filing with the Securities and Exchange Commission,
LaRoche, a North Kingstown, R.I., investor who already holds
nearly one-third of NECO's total outstanding commonstock, also
waived a condition of his offer that a minimum of 170,000
shares actually be tendered.
    NECO has 957,000 shares outstanding.


.I 17511
.C
money-fx
.W
TREASURY'S BAKER PURSUING S. ASIAN REVALUATIONS.
    WASHINGTON, March 31 - Treasury Secretary James Baker told
the House Appropriations Committee the United States is still
pressing newly industrialized south Asian nations that have
tied their currencies to the dollar to let those currencies
strengthen against the dollar.
    "We have seen some strengthening of those currencies (but)
not as much as we would like," he said.
    "We have been somewhat disappointed in the results so far,
but we intend to continue these discussions," he said.


.I 17512
.C
earn
.W
PIER 1 IMPORTS <PIR> AMENDING DATES ON SPLIT.
    FORT WORTH, Tex., March 31 - Pier 1 Imports Inc said it
amended its record and distribution dates for its previously-
announced three-for two common and 25 cts preferred stock
split.
    The split common and 25 cts preferred shares will be
distributed on July 2, 1987, to shareholders of record June 24,
1987.
    The stock split requires shareholder approval of an
increase in authorized shares of common stock to 100 mln from
25 mln and an increase of authorized shares of preferred stock
to five mln from one mln, the company said.
    The change in the dates was based on the company's desire
to have the additional common and 25 cts preferred shares trade
for the shortest practical period of time on a "when issued"
basis following a favorable shareholder vote at the annual
meeting June 24, it said.
    The previously announced record and distribution dates were
May 13, 1987, and June 29, 1987, respectively, the company
said.


.I 17513
.C
earn
.W
INTERNATIONAL BIOTECHNOLOGIES <IBIO> 4TH QTR.
    NEW HAVEN, Conn, March 31 -
    Shr loss 34 cts vs loss 14 cts
    Net loss 798,000 vs loss 213,000
    Revs 1.5 mln vs 1.5 mln
    Year
    Shr loss 61 cts vs loss 2.08 dlrs
    Net loss 1.4 mln vs 1.0 mln
    Revs 6.8 mln vs 6.0 mln
    NOTE:1986 net loss includes non-recurring charges of
132,000 dlrs and 270,000 dlrs. Full name is INternational
Biotechnologies Inc.


.I 17516
.C
crude
.W
U.S. OFFICIALS DEFEND OIL RESERVE SALE PLAN.
    WASHINGTON, March 31 - Treasury Secretary James Baker and
Office of Management and Budget chief James Miller defended an
administration plan to sell the U.S. Naval Petroleum Reserves.
    In response to hostile questioning from a member of the
House Appropriations Committee, the officials said the plan was
justified to help bring the fiscal 1988 budget deficit and to
get the government out of the oil business.
    Miller acknowleged the estimated sale proceeds at 3.3
billion dlrs would actually bring down the deficit by about 2.2
billion dlrs because of the loss of revenues from the sale of
oil from the reserves.
    Miller said the sale price may end up higher.
    "We'd sell it to the highest bidder," Miller said.
    "If we can get more we'll take it."


.I 17521
.C
cocoa
.W
TRADERS CUT BAHIA TEMPORAO COCOA CROP ESTIMATE.
    RIO DE JANEIRO, March 31 - Trade estimates of the coming
May/September temporao harvest in Brazil's main cocoa growing
state of Bahia are now in the 1.5 mln to 2.0 mln 60-kilo bag
range against 2.0 mln to 2.5 mln two weeks ago.
    Traders in the state capital Salvador told Reuters the
effects of a dry period in the first six weeks of the year had
been harsher than thought earlier.
    Although good flowering had followed the onset of rains in
mid-February subsequent pod setting was dissappointing.
    Last year's temporao, also hit by a dry spell, was 2.77 mln
bags. In 1984 severe drought cut the crop to 1.79 mln bags.
    The traders said another factor leading to lower crop
predictions is that many farmers are not caring properly for
plantations because of low returns on their investment.
    Manpower, fertiliser and other costs have been cut back as
farmers feel the pinch of the rise in interest rates over the
past six months coupled with low bean prices.
    If such economies continue into the winter months both the
temporao and the developing October/April main crop could face
serious damage from pod rot attacks on trees which would
normally be treated against the disease.
    Recent very wet weather has already caused some isolated
incidences of pod rot but reports from the growing regions say
these are not yet significant.
    The traders said they expect very low deliveries of
temporao beans in the first three months of the harvest and the
bulk will not appear until the last month, September.
    Despite the low loads, trees are said to be in excellent
condition and recent flowering and pod setting - which will
lead to late temporao/early main crop beans - has been good.


.I 17522
.C
trade
.W
TREASURY'S BAKER NOT CONCERNED BY BOND DECLINES.
    WASHINGTON, March 31 - Treasury Secretary James Baker,
asked whether he was concerned about yesterdays precipitous
decline in bond prices, said he was not.
    Questioned by reporters as he left a House committee
hearing, Baker said "no," when asked about the bond decline,
adding that it was a reflection of concern about the
possibility of a trade war.
    "It is what the markets think would be the adverse
consequences of a trade war."
    He said the administration was concerned that protectionism
would lead to international trade problems adding that he
thought the action against the Japanese was still consistent
with this policy.


.I 17523
.C
trade
.W
U.S.-JAPAN NOT IN TRADE WAR, YEUTTER SAYS.
    WASHINGTON, March 31 - The United States and Japan are not
involved in a trade war, despite U.S. sanctions announced last
week against Japanese semiconductors, U.S. Trade Representative
Clayton Yeutter said.
    "In my judgement, we're not even close to a trade war,"
Yeutter told a House Agriculture Committee hearing.
    Yeutter said if Japan takes action to honor its agreement
with the U.S. on semiconductor trade, "Then the retaliatory
response will last a relatively short period."
    Yeutter said Japan must stop dumping chips in third
countries and buy more American computer chips.


.I 17524
.C
cocoa;coffee;sugar;
.W
CSCE ALTERS RULES ON TRADING LIMITS.
    New York, March 31 - The Coffee, Sugar and Cocoa Exchange
amended regulations governing expanded trading limits on
coffee, cocoa and sugar contracts to provide uniformity.
    Effective today, the exchange will permit normal daily
price limits in those commodities to expand whenever the first
two limited contract months move the limit in the same
direction for two consecutive sessions.
    The normal daily limits will be reinstated once the first
two limited deliveries close by less than the normal limit for
two successive trading days.
    Previously exchange rules required the first three limited
months to move the limit in coffee and cocoa. It had required
the first two limited sugar deliveries to make such moves for
three consecutive sessions.


.I 17526
.C
acq
.W
UAL <UAL> COMPLETES BUY OF HILTON INT'L.
    CHICAGO, March 31 - UAL Inc said it completed the
acquisition of Hilton International from Transworld Corp <TWT>,
paying 982.5 mln dlrs in cash and securities.
    Hilton International will add 90 hotels to UAL's Westin
hotel unit, which operates 61 hotels. The two chains will have
a total of 151 hotels with 67,000 rooms and 71,000 employees,
it said.
    Harry Mullikin, chairman and chief executive of UAL's
Westin Hotel unit, has been elected to the additional post of
chairman and chief executive of Hilton International.
    UAL will change its name to Allegis at its annual meeting.


.I 17527
.C
acq
.W
OCCIDENTAL <OXY> SELLS UNIT TO <HENKEL KGAA>.
    MINNEAPOLIS, March 31 - Henkel KGaA of Dusseldorf, West
Germany, said it has completed the acquisition of the Process
Chemicals Division of Occidental Petroleum Corp's <OXY>
Occidental Chemical Corp subsidiary for undisclosed terms.
    Process Chemicals, acquired from Diamond Shamrock Corp
<DIA> in September, makes specialty chemicals for a variety of
industrial markets and has annual sales of about 160 mln dlrs.


.I 17528
.C
nat-gas
.W
SOUTHWESTERN ENERGY <SWN>, ARKLA <ALG> SET PACT.
    FAYETTEVILLE, Ark., March 31 - Southwestern Energy Co said
it reached an agreement with Arkla Energy Resources for Arkla
to carry gas owned by Southwestern subsidiaries.
    Under the agreement, the interstate pipeline division of
Arkla Inc will carry up to 25 mln cubic feet of gas a day until
Dec 31, 1987, and, subject to capacity, up to 50 mln cubic feet
a day in 1988 and 75 mln feet a day for the rest of the pact.
    Payment terms vary depending on the type of service
provided, a Southwestern spokesman said.
    The deal is effective March one, 1987, expires July one,
1997, and is renewable yearly thereafter, he said.
    The pact calls for transmission of gas owned by Arkansas
Western Gas Co, Seeco Inc, Arkansas Gas Gathering Co and
Southwestern Energy Production Co, Southwestern Energy said.


.I 17530
.C
acq
.W
AMERICAN <AMR> SETS SCHEDULE FOR AIRCAL MERGER.
    DALLAS, March 31 - AMR Corp's American Airlines unit said
it plans to complete the integration of AirCal into its
operations within four to five months.
    American's merger with AirCal, announced last November,
received final approval from the Department of Transportation
yesterday.
    American said Richard D. Pearson, coordinator of the
airline's merger activities, will become chairman and chief
executive officer of AirCal during the period up to completion
of the merger.
    American said Pearson succeeds William Lyon, who has been
elected to AMR's board.
    It added that David A. Banmiller will continue as AirCal's
president and chief operating officer.


.I 17531
.C
acq
.W
******GENCORP SAYS IT EXPECTS TO COMPLETE SALE OF WOR TV THIS WEEK, ALL CHALLENGES RESOLVED.
Blah blah blah.

.I 17532
.C
earn
.W
SYMS CORP <SYM> 4TH QTR.
    NEW YORK, March 31 -
    Shr 43 cts vs 25 cts
    Net 7.6 mln vs 4.4 mln
    Revs 72.0 mln vs 66.9 mln
    Year
    Shr 84 cts vs 72 cts
    Net 14.8 mln vs 12.7 mln
    Revs 223.1 mln vs 215.2 mln
    NOTE: 1986 4th qtr inludes gain of 2.6 mln dlrs on sale of
real estate.


.I 17537
.C
earn
.W
NPS TECHNOLOGIES GROUP <NPSGU> 4TH QTR.
    SECAUCUS, N.J., March 31 -
    Shr N.A. vs N.A.
    Net 46,000 vs 106,000
    Revs 19.8 mln vs 19.0 mln
    YEar
    Shr 26 cts vs 26 cts
    NEt 1.3 mln vs 1.3 mln
    Revs 82.1 mln vs 105.3 mln
    NOTE:1986 net includes 870,000 dlrs charge. 1985 net
includes 788,000 credit. No share amounts provided for 4th qtr
as NPS completed initial offering in August.


.I 17538
.C
earn
.W
FREEPORT-MCMORAN RESOURCE LP <FRP> QTLY PAYOUT.
    NEW ORLEANS, March 31 - 
    Qtly cash distribution 60 cts vs 60 cts prior
    Pay May 15
    Record April 30
    Note: Full name is Freeport-McMoRan Resources Partners LP.


.I 17539
.C
acq
.W
BUTLER <BTLR> TO BUY SKYLIGHT MANUFACTURER.
    KANSAS CITY, MO., March 31 - Butler Mfg Co said it signed a
memorandum of intent to acquire Naturalite Inc, a manufacturer
of skylights.
    It said Garland, Texas-based Naturalite had sales in 1986
of about 20 mln dlrs.
    Terms were not disclosed.


.I 17540
.C
earn
.W
DATA MEASUREMENT CORP <DMCB> 4TH QTR.
    GAITHERSBURG, Md, march 31 -
    Shr 83 cts vs 60 cts
    Net 516,063 vs 328,468
    Revs 8.3 mln vs 5.7 mln
    NOTE:Shrs reflect 3-for-2 stock split.


.I 17541
.C
earn
.W
PUBCO CORP <PUBO> YEAR NET.
    CLEVELAND, March 31 - 
    Oper shr 12 cts vs nine cts
    Oper net 4,027,852 vs 3,200,837
    Revs 100.2 mln vs 46.0 mln
    Note: Oper net excludes tax credits of 517,916 vs 198,000
    Current year results include proceeds from termination of a
pension plan.


.I 17543
.C
earn
.W
<MONTREAL TRUSTCO INC> YEAR NET.
    MONTREAL, March 31 -
    Shr 94 cts vs 75 cts
    Net 27.0 mln vs 18.4 mln
    Revs 631.6 mln vs 409.5 mln
    Avg shrs 27.1 mln vs 22.6 mln


.I 17546
.C
acq
.W
TRADESTAR <TIRR> ACQUIRES IMAGE VIDEO.
    TULSA, Okla., March 31 - Tradestar Corp said it acquired
<Image Video Inc> for an undisclosed sum.
    The company said Image Video produces and distributes
videos for the home market.
    Image Video is scheduled to release 20 video projects in
1987, it said.


.I 17549
.C
trade
.W
CHIRAC, REAGAN DISCUSS ARMS CONTROL, TRADE.
    WASHINGTON, March 31 - French Prime Minister Jacques Chirac
opened talks with President Ronald Reagan expected to focus on
superpower arms control moves and trade issues.
    French officials said a major aim of Chirac's visit was to
present France's concern that the United States might ignore
European security interests in any accord with Moscow on
removing medium-range nuclear missiles from the continent.
    But Reagan was expected to assure Chirac that he will not
agree to a deal at the Geneva superpower talks that would give
the Russians superiority in shorter-range systems, diplomats
said.
    France has expressed doubts about removing U.S. missiles
from Europe so long as the Soviet Union maintains an edge in
other weaponry, particularly shorter-range rockets,
conventional forces and chemical weapons.
    Speaking last night, Chirac set out the French position
saying: "Any agreement on intermediate nuclear forces should
mention how equality can be achieved in short-range missiles."
    Reagan and Chirac meanwhile signed an agreement ending a
dispute between two leading research institutes over patent
rights to a blood screening test for the deadly disease AIDS.
    In a joint statement, Chirac and Reagan said the Pasteur
Institute in Paris and the National Cancer Institute, of
Bethesda, Maryland, agreed to give part of the royalties from
the test to a new foundation dedicated to the wordwide fight
against AIDS (Acquired Immune Deficiency Syndrome).
    "This agreement opens a new era in Franco-American
cooperation, allowing France and the United States to join
their efforts to control this terrible disease in the hopes of
speeding the development of an AIDS vaccine and cure," Reagan
said at the signing ceremony. 
    He said the two parties would share the patent and give 80
per cent of the royalties received to the new foundation.
    The foundation would also raise private funds and would
donate 25 per cent of its money to combat AIDS in less
developed countries. 
    Both leaders stressed the long ties between France and the
United States during a welcoming ceremony in the White House
East Room, with Reagan describing France as "America's oldest
ally in war and peace." 
    "I have come to tell you that we are remain motivated by the
same ideals of freedom, by the same will to face the dangers
which we both confront -- terrorism, war, hunger, poverty, new
diseases and drugs," Chirac replied.
    But the two countries are likely to have less to agree on
over the issue of trade, where Chirac is worried about a rise
in protectionism in the U.S. Congress. 
    A senior U.S. official yesterday dismissed a French idea to
sell cut-price grain to poor countries in Africa as a way of
lessening surplus stocks.
    Chirac is expected to canvass support for the idea, first
proposed by French Agriculture Minister Francois Guillaume,
during his two-day visit to Washington.
    The U.S. official described the idea as a "grain producers'
OPEC" -- a reference to the Organization of Petroleum Exporting
Countries -- and said it went against the Reagan
administration's desire to lessen government intervention in
trade.


.I 17550
.C
acq
.W
******GENCORP SAYS ALTERNATIVE TO HOSTILE TENDER TO BE ANNOUNCED WITHIN A WEEK.
Blah blah blah.

.I 17553
.C
heat;gas;crude;
.W
U.S. DISTILLATE, GASOLINE INVENTORIES SEEN LOWER.
    NEW YORK, March 31 - Tonight's American Petroleum Institute
weekly inventory report is expected to show moderate drawdowns
in distillates and gasoline stocks for the week ended March 27,
analysts and traders said.
    They said they expect gasoline stocks to fall three mln
barrels or less and heating oil inventories to drop between 1.3
and four mln barrels.
    Some analysts see crude stocks falling by as much as six
mln barrels, while others think they could go up as much as 3.5
mln barrels. Crude oil runs are expected to be unchanged from
the previous week or slightly higher or lower.
    For the week ended March 20, the API said gasoline stocks
fell 2.7 mln barrels. Mosts analysts expect a modest draw for
the week ended March 27. They said stocks could fall between
700,000 and three mln barrels. Some said there is also a chance
gasoline stocks will be unchanged.
    API said distillate stocks dropped four mln barrels for the
week ended March 20. Analysts and traders generally predict a
similar or smaller depletion for last week. They said stock
levels could drop 1.3 to four mln barrels.
    The analysts attribute product stockdraws to seasonal
factors but they said crude direction is harder to call.
    Crude inventories rose 8.5 mln barrels in the week ended
March 20, API said. Analysts are looking for build of between
3.5 mln barrels to a six mln barrel draw for the week ended
March 27.
    API reported the amount of refinery capacity utilized up
three pct for the week ended March 20. Analysts said
utilization could have remained unchanged, or rose or fell by
less than one pct for the week ended March 27.
    Moderate product stockdraws would strengthen the market
slightly, analysts said. But bullish expectations are already
partially reflected in today's gains, they added.


.I 17554
.C
acq
.W
GENCORP <GY> ALTERNATIVE PLAN DUE WITHIN A WEEK.
    AKRON, Ohio, March 31 - A. William Reynolds, chairman and
chief executive of GenCorp Inc, told shareholders he expects to
announce a company alternative to a 100-dlr-per-share hostile
tender within a week.
    Last night the company urged shareholders to reject the
tender. Reynolds urged shareholders to be patient, saying the
group sponsoring the tender offer had months to evaluate
GenCorp while "we have had only 10 days to respond."
    Reynolds also disclosed the company has resolved legal
challenges to its planned sale of WOR TV, serving the New York
City market, and expects to complete the sale by Friday.
    Reynolds said the company expects to book an after tax gain
of 250 mln dlrs from the sale of WOR TV. The company plans to
sell the station to MCA Inc <MCA> for 387 mln dlrs.
    Reynolds did not specify whether the legal challenges were
dropped or dismissed. The Federal Communications Commission has
already approved the station's sale.
    Money from the sale of the station will play a role in
helping develop an alternative to the tender offer co-sponsored
by AFG Industries Inc <AFG> and Wagner and Brown, Reynolds
said. He provided no other details.
    Randall Hubbard, chairman of AFG, and Joel Reed, chief
financial officer of Wagner and Brown, attended the meeting,
which was shifted from a tire plant to a downtown hotel. About
300 people were present despite an overnight snowstorm.
    Hubbard and Reed chatted briefly with Reynolds after the
meeting but declined to discuss their proposal with reporters.
    Reynolds told the shareholders friends and family members
have been telling him "Bill, just don't pay greenmail" to end
the takeover threat. Greenmail describes a buyout of a minority
shareholder at a price not available to other holders. Reynolds
said he considers it a "repugnant device."
    Shareholders elected management's slate of 11 directors.
Mario Gabelli, head of a New York investment firm which owns a
large block of stock, proposed one nominee for the board.
Gabelli said the unsuccessful attempt was designed to "stiffen
the backbone of the board to discourage greenmail."
    Hubbard and Reed reiterated previous statements that they
are open to negotiations with GenCorp.
    Asked about severance contracts for key executives in the
event of a shift in control of the company, Reynolds asserted
"we're developing alternatives that would not result in a
change in control."
    Asked whether the company's plan would be superior to any
proposal of AFG and Wagner and Brown, Reynolds commented, "We
know the company, we know the values and we know the
opportunities better than any outside group."
    In response to a question about whether any units are up
for sale, he said only that GenCorp is evaluating alternatives.


.I 17556
.C
earn
.W
ILLINOIS POWER CO<IPC> TWO MONTHS FEBRUARY NET.
    DECATUR, ILL., March 31 -
    Shr 65 cts vs 67 cts
    Net 49,517,000 vs 47,732,000
    Revs 229.2 mln vs 245.7 mln
    Avg shrs 65,994,142 vs 63,293,867
    NOTE: Per-share results reflect payment of preferred
dividend requirements


.I 17558
.C
trade
.W
******REAGAN RENEWS ANTI-PROTECTIONISM STAND, WHITE HOUSE SAYS TRADE WAR UNLIKELY.
Blah blah blah.

.I 17559
.C
earn
.W
AVERY <AVRY> SEES QTR, YEAR LOSS.
    NEW YORK, March 31 - Avery Inc said the company will not
show a profit in the next quarter and will probably not show a
profit in 1987.
    Speaking at the annual shareholders meeting, chairman
Nelson Peltz declined to estimate when the company would become
profitable.
    Peltz said Uniroyal Chemical Co, acquired last year, would
increase Avery's operating earnings but that associated
acquisition costs would prevent Avery from posting net profits
for some time.
    At the meeting, stockholders approved an increase in the
authorized number of common shares to 200 mln from 15 mln.
    In the fiscal year ended May 30, 1986, Avery reported a
loss of 489,000 dlrs. The company has changed its fiscal year
to end Sept 30.
    The increase in common shares would cover, among other
things, the exercise of Triangle Industries Inc's <TRI> and
Drexel Burnham Lambert Inc's warrants issued in relation to
Avery's 710 mln dlr acquisition of Uniroyal Chemical late last
year.


.I 17560
.C
trade
.W
TRADE WAR FEARS MAY PROMPT STOCK MARKETS' DOWNTURN.
    By David Ress, Reuters
    LONDON, March 31 - The threatened trade war between the
United States and Japan is just the kind of shock that
economists say could send world stock markets into a tailspin.
    But they are not so sure if that would be a brief
corrective dip, or whether this week's falling share prices
mark the start of a "bear" market.
    "It's the billion dollar question," said Richard O'Brien,
economist at American Express International Bank in London.
    Japan's trade surplus -- 92.7 billion dlrs last year -- has
poured into share and bond markets around the world, and funded
a good chunk of the huge U.S. Budget deficit. Around a third of
any new sale of U.S. Treasury bonds has been bought by the
Japanese. However, Japanese investors have lost money as the
dollar falls and will lose more if the United States lets it
fall further to cut the trade deficit. The counterpart of
improving the trade deficit either through a lower dollar or
because the U.S. Increases duties on Japanese electronic goods,
may be to hit the capital inflow which has financed the budget
deficit.
   And if the U.S. Trade deficit does fall, the Japanese will
have less money to invest. To entice U.S. Investors to fill the
gap that would be left if the Japanese stopped buying U.S.
Bonds, interest rates would have to soar, O'Brien said. The
subsequent shift from shares to bonds could cause major falls
on the world stock markets.
    "A year ago, we could be pretty confident about the markets,"
said O'Brien. "Now, it is much less certain."
    Buoyant share prices are supposed to reflect a booming
economy. But the world economy, with sluggish growth at best in
the industrial nations, a massive load of Third World debt and
huge trade imbalances is not in good shape, said O'Brien.
    Nevertheless, New York analyst William Raferty, of Smith
Barney Harris Upham said  "We're still in a bull market," adding
that corrections are a normal part of a rising market and "The
bear usually strikes slowly."
    Economist Evelyn Brody, at Morgan Grenfell and Co in
London, said the huge sums of money going through the world
financial system will keep a floor under share and bond prices.
    Although interest by the Japanese in putting their money in
non-dollar denominated bonds and stocks has increased it's very
difficult to see where else they can put their money than in
U.S. Dollars and especially the U.S. Treasury (bond) market,
according to David Butcher, a senior executive at Yamaichi
Securities Co Ltd's bond operation in London.
    He said the Japanese are paying much closer attention now
to the French franc and West German mark.
    In the longer run, he worries about what trade tensions and
the dollar's slide will mean for securities markets.


.I 17561
.C
earn
.W
BIG BEAR INC <BGBR> 2ND QTR FEB 28 NET.
    COLUMBUS, Ohio, March 31 - 
    Shr 46 cts vs 31 cts
    Net 3,608,000 vs 2,448,000
    Revs 223.5 mln vs 218.2 mln
    Six mths
    Shr 87 cts vs 64 cts
    Net 6,788,000 vs 4,992,000
    Revs 441.5 mln vs 439.5 mln


.I 17562
.C
earn
.W
NORTHVIEW CORP <NOVC> YEAR NET.
    SAN DIEGO, Calif., March 31 -
    Shr 30 cts vs 51 cts
    Net 966,000 vs 1,470,000
    Revs 39.8 mln vs 41.3 mln


.I 17563
.C
earn
.W
******PENNZOIL SEES LOWER 1ST QTR NET BEFORE UNUSUAL ITEM AGAINST YEAR AGO LOSS 49 CTS.
Blah blah blah.

.I 17565
.C
earn
.W
SCEPTRE RESOURCES LTD <SRL> YEAR NET.
    CALGARY, Alberta, March 31 -
    Shr seven cts vs two cts
    Net 5,500,000 vs 4,300,000
    Revs 69.1 mln vs 115.3 mln
    Note: Shr after preferred divs.


.I 17566
.C
acq
.W
TALKING POINT/BORG-WARNER CORP <BOR>.
    By Patti Domm, Reuters
    New York, March 31 - Borg-Warner Corp will vigorously
resist GAF Corp's 46-dlr-per-share takeover offer, but the
Midwest conglomerate may fall prey to another offer,
either from GAF or its own management, analysts believe.
    Analysts also said Borg-Warner may attempt to escape GAF
through a restructuring. The speculation pushed Borg-Warner's
stock up 1-3/8 to 48-1/2 in heavy trading.
    Analysts predicted feisty GAF Chairman Samuel Heyman will
stage a tough campaign to gain control of Borg-Warner so he can
add its profitable plastics and chemical business to GAF.
    "It seems from at least their dealing with (raider Irwin)
Jacobs that they don't want to be taken over. The question is
now do they acquiesce to GAF. I think instinctively, they want
to remain independent," said Dudley Heer of Duff and Phelps.
    Borg-Warner has been under siege by takeover speculation
for almost a year. Last week, Jacobs' investment vehicle,
Minstar Inc, and an investor group sold its 10.1 mln
Borg-Warner shares. The same day, GAF Corp raised its stake by
9.1 mln shares to 19.9 pct of the outstanding.
    Jacobs was interested in buying the company, but took no
steps toward a transaction.
    "Their (Borg-Warner) policy has been to stonewall them for
the last nine months. It's been one of the dullest corporate
battles I've seen," said one analyst.
    The battle, however, has heated up, and the range of
breakup values on Wall Street span from the current market
price to almost 60 dlrs per share. Most analysts said they
think a price in the low 50s would be appropriate.
    Arbitragers speculate that GAF will not give up easily on
its 3.16 billion dlr offer to buy the balance of Borg-Warner.
    Analysts who know GAF predict Heyman will either end up
with Borg-Warner or enrich his chemicals and building materials
company in some other way. Heyman two years ago attempted an
unsuccessful takeover of Union Carbide Corp, but GAF benefited
from that company's restructuring.
    "Borg Warner can't quibble that it's not a legitimate
offer. It seems to me the short of it is Borg Warner is kind of
between a rock and a hard place. They either have to accept a
46 dlr proposal or perhaps work a deal where it's sweetened. I
personally think the company is (worth) around 55 dlrs per
share," said Pershing analyst Richard Henderson.
    Henderson also speculated the company might attempt a
restructuring such as the one carried out by Goodyear Tire and
Rubber Co last year when it was being courted by Sir James
Goldsmith. The company bought back the financier's stock and
carried out a wider share repurchase.
    Arbitragers, however, said they do not believe Heyman is
seeking "greenmail," or the repurchase of his stock by the
company at a premium.
    Analysts noted that Heyman seems to have no problems with
financing the transaction.
    Previously associated with "junk bond" experts, Drexel
Burnham Lambert Inc, GAf said it would finance its Borg-Warner
takeover with bank financing. GAF said it would make a tender
offer following a merger agreement approved by the Borg-WArner
board and conditioned on the board's recommendation of the
tender offer and merger.
    Heyman said in a letter to Borg-Warner that he expects a
merger would provide job security for Borg-Warner employees
since the two companies businesses overlap. Analysts, however,
believe Heyman would sell off assets he did not want to repay
debt from the transaction.
    GAF's stock rose 1-5/8 today, to 48-5/8.
   "I believe, obviously, if GAF takes over Borg-Warner at the
level it is proposing it would enhance GAF share values
substantially," said Oppenheimer analyst Charles Rose.
    He said at 46 dlrs per share, Heyman's average cost for the
company's stock would be 44 dlrs per share based on GAF's
current holdings.
    Rose said the Borg-Warner plastics and chemical business,
which makes thermo-plastics is the asset attracting Heyman.
Analysts said it accounts for a third of Borg's earnings.
    The plastics are used in telephone equipment, office
equipment and appliances. "Borg has half the market in the U.S.
and is the leading technical player and the leading innovator,"
Rose said. Its competitors are Dow Chemical Co <DOW> and
Monsanto Corp <MTC>, he said.
    Borg-Warner also has an automotive parts business, and a
protective systems business, which includes Wells Fargo
security guards. It also has an information services business,
and is trying to sell its financial services business.
    Borg-Warner earned 206.1 mln dlrs or 2.35 dlrs per share on
revenues of 3.62 billion dlrs in 1986. Smaller GAF, in 1986,
earned on an operating basis 80.7 mln dlrs or 2.22 dlrs per
share on sales of 753.8 mln dlrs.
    GAF's net earnings included an after tax gain of 201.4 mln
from its participation in a Union Carbide exchange offer, a
special union carbide dividend, and the sale of its Union
Carbide shares.


.I 17567
.C
acq
.W
MANHATTAN NAT'L <MLC> HOLDERS VOTE STOCK SALE.
    NEW YORK, March 31 - Manhattan National Corp said its
shareholders overwhelmingly approved a proprosal through which
<Union Central Life Insurance Co> took control of the company
by acquiring about 3.6 mln shares of newly issued Manhattan
National common stock for 43.2 mln dlrs.
    The company said the transaction gives Union Central, a
Cincinnati-based mutual insurance company, a total of 8,804,397
shares of Manhattan National stock, or 52.2 pct of the total
outstanding.
    Manhattan National said about three mln dlrs of the
invested funds will be used to repay short-term debt and two
mln dlrs has been earmarked for other short-term needs.
    The remainder will be available for the company's insurance
units, or for other business purposes, it said.
    Charles C. Hinkley, president and chief executive officer
of Union Central, is expected to be named chairman, president
and chief executive of Manhattan National, the company said.


.I 17568
.C
earn
.W
PENNZOIL <PZL> SEES LOWER FIRST QTR.
    NEW YORK, March 31 - Pennzoil Co Chairman J. Hugh Liedtke
told a meeting of analysts that the company expects its first
quarter net to be down considerably, before an unusual item,
from the loss of 49 cts a share reported a year ago.
    Liedtke did not say how large the unusual item would be.
"We're still closing our books on the first quarter, so I don't
have final numbers for you," he said.


.I 17569
.C
cotton
.W
U.S. WEATHER/COTTON SUMMARY -- USDA/NOAA.
    WASHINGTON, March 31 - Cotton planting began in California
and was expected to proceed rapidly in the week ended March 28,
the Joint Agriculture Weather Facility of the U.S. Agriculture
and Commerce Departments said.
    In a summary of its Weather and Crops Bulletin, the agency
said winds and low soil temperature retarded growth and
hampered seeding in Arizona.
    Planting moved into Mohave and Pinal Counties.
    Cotton planting progressed well in the Lower Valley,
Coastal Bend and along the Upper Coast of Texas.
    However, bad weather continued hampering cotton seedbed
preparations in Oklahoma.


.I 17570
.C
acq
.W
QUANTUM VENTURE UPS COMPUTER NETWORK<CMNT> STAKE.
    MINNEAPOLIS, March 31 - Computer Network Technology Corp
(CNT) said that <Quantum Venture Partners LP>, a private
investment limited partnership, has acquired an additional
600,000 shares of CNT common stock, raising its stake in CNT to
15.3 pct from 9.6 pct of the currently outstanding shares.
    CNT said Quantum bought the shares by exercising 1.5 mln
dlrs in warrants, bringing its total investment in CNT to 2.5
mln dlrs.
    CNT also said <Sand Technology Systems Inc> of Canada
bought two of its CHANNELink networking units for a data
processing service for major health care facilities in Canada.


.I 17572
.C
earn
.W
ELCOR <ELK> UPS QTLY DIV, SETS STOCK SPLIT.
    MIDLAND, Texas, March 31 - Elcor Corp said it raised its
quarterly common stock dividend to 11 cts a share from nine cts
and declared a two-for-one common stock split.
    The company said the increased dividend will be paid on May
13 to shareholders of record April 16.
    The stock split, Elcor said, will paid in the form of a 100
pct stock dividend on May 28 to shareholders of record may 14.


.I 17576
.C
acq
.W
QUEST <QBIO> SIGNS PACT WITH ALZA <AZA>.
    DETROIT, March 31 - Quest Biotechnology Inc said its Quest
Blood Substitute Inc subsidiary executed an agreement with Alza
Corp <AZA> which will make Alza a preferred shareholder of its
subsidiary.
    Quest said the agreement also offers Alza the right to
acquire up to 25 pct of the unit's equity in exchange for the
acquisition of patent rights to Alza technology in an area
where Quest has an interest.
    Quest also said its signed a merger agreement with <Hunt
Research Corp> and its affiliate <ICAS Corp>. Quest said it
expects to complete the merger within the next several weeks.


.I 17577
.C
acq
.W
CHUBB <CB> COMPLETES SOVEREIGN <SOVR> BUYOUT.
    NEW YORK, March 31 - Chubb Corp said it completed the
previously announced acquisition of Sovereign Corp.
    Under terms of the acquisition, Sovereign shareholders will
receive, in a tax-free exchange, 0.1365 share of Chubb common
for each Sovereign share held.
    Chubb said the transaction was valued at 9.11 dlrs a share
based on the closing price of its stock on March 30.


.I 17581
.C
lumber
.W
USDA'S AMSTUTZ "SYMPATHETIC" TO WOOD CREDITS.
    WASHINGTON, March 31 - U.S. Agriculture Undersecretary
Daniel Amstutz said he was "totally sympathetic" with U.S. wood
producers' desire to have their exports eligible for government
credit guarantees.
    But he told the Senate Appropriations Agriculture
subcommittee that including wood products in the department's
short- or intermediate-term export guarantee programs would
conflict with U.S. multilateral trade obligations.
    Currently, U.S. wood products are not eligible for
government export credit guarantee because they are considered
"manufactured products," Amstutz said.
    He said USDA had devoted an "enormous amount" of time to
considering making wood products eligible for the guarantees
and that Congress was considering a measure to do so.


.I 17583
.C
acq
.W
INVERNESS BUYS ASSETS FROM PARENT SILVERTON.
    CALGARY, Alberta, March 31 - <Inverness Petroleum Ltd> said
it acquired the oil and gas assets of its controlling
shareholder <Silverton Resources Ltd> for 26.4 mln dlrs,
effective March 3, 1987.
    Inverness said it issued 2,640,000 class A convertible
retractable redeemable preferred shares in exchange for the
assets, which include all Silverton's oil and gas properties,
undeveloped acreage and its shares of Australian subsidiary
S.R.L. Exploration Pty Ltd.
    The preferred shares were immediately retracted for cash,
the company said.
    The transaction resulted in a discharge of Silverton's bank
debt of 21.0 mln dlrs and a three mln dlr loan to Inverness
from Silverton, Inverness said.
    As a result of the acquisition, Inverness has bank debt of
18.0 mln dlrs, it said.


.I 17584
.C
acq
.W
BRISTOL-MYERS TRUST <BYU> EXTENDS EXPIRATION.
    NEW YORK, March 31 - <Americus Shareowner Service Corp>
said the Americus Trust for Bristol-Myers will continue to
accept tendered Bristol-Meyers Co <BMY> shares until December
one, extending the original expiration date of April one for
eight months.
    If the common stock price exceeds the trust's termination
price of 110 dlrs, Americus Shareowner Service said, the trust
will be temporarily closed until the price of the underlying
stock falls below the termination price.


.I 17587
.C
acq
.W
QUEST BIOTECHNOLOGY <QBIO> UNIT IN MERGER PACT.
    DETROIT, March 31 - Quest Biotechnology Inc said its new
subsidiary, Quest Blood Substitute Inc, signed the agreement
and plan of merger with Hunt Research Corp and its affiliate,
ICAS Corp.
    It said Quest Blood expects to complete the merger within
the next several weeks. Terms were not disclosed.
    In a related transaction, Quest Blood said it executed an
agreement with Alza Corp, which will make Alza a preferred
shareholder of Quest Blood and offer Alza the right to acquire
a total equity position of up to 25 pct of Quest Blood in
exchange for acquisition of patent rights to Alza technology.


.I 17588
.C
acq
.W
LINCOLN FOODSERVICE <LINN> COMPLETES PURCHASE.
    FORT WAYNE, Ind, March 31 - Lincoln Foodservice Products
Inc said it completed purchasing certain assets of Redco
product line of food slicers, cutters and wedgers from the
Dean/Alco Food Prep division of <Alco Foodservice Equipment
Co.>
    Terms were not disclosed.


.I 17589
.C
earn
.W
I.R.E. FINANCIAL CORP <IF> YEAR.
    CORAl GABLES, Fla, March 30- 
    Shr 94 cts vs 77 cts
    Net 2.1 mln vs 1.7 mln
    Revs 7.8 mln vs 8.8 mln
    NOTE:Per share data reflects elimination of 500,000 shares
owned by 50 pct owned subsidiary and reflect one-for-three
reverse stock split effective march 5, 1986.


.I 17590
.C
earn
.W
ENERGY VENTURES CINC <ENGY> 4TH QTR NET.
    NEW YORK, March 31 - 
    Net profit 510,000 vs loss 5,700,000
    Revs 875,000 vs 4,100,000
    Year
    Net profit 871,000 vs loss 4,100,000
    Revs 4,700,000 vs 14.1 mln


.I 17597
.C
grain;rice;
.W
CHINA CROP WEATHER SUMMARY -- USDA/NOAA.
    WASHINGTON, March 31 - Moderate to heavy rain continued
over early double-crop rice areas in eastern Guangxi,
Guanghdong, eastern Hunan, Jiangxi, Fujian, and Zhejiang in the
week ended March 28, the Joint Agricultural Weather Facility of
the U.S. Agriculture and Commerce Departments said.
    In its International Weather and Crop summary, the agency
said The moisture lessened the need for irrigation. Moisture
for early rice planting is adequate to abundant in most areas,
and inundative rain in Guangdong and southern Jiangxi may have
washed out some rice fields requiring replanting.
     Light showers in southern Sichuan increased topsoil
moisture for corn planting, which likely is off to a slow start
due to earlier dryness, it said.
    In the North China Plain, dry weather covered winter wheat
in the vegetative stage, and rain is needed to meet increasing
crop moisture requirements, it said.
    Weekly temperatures in the North China Plain were near
normal, the agency noted.


.I 17600
.C
acq
.W
WILSON BROTHERS COMPLETES SALE.
    MIAMI, Fla., March 31 - Wilson Brothers said it completed
the sale of most of the assets of its Enro Shirt Co Inc,
Enro-At-Ease Inc and Foxcroft Shirt Ltd subsidiaries to Enro
Acquisition Corp for about 24.2 mln dlrs, half in cash and half
in subordinated promissory notes.
    Enro Acquisition is a newly formed corporation and owns
Ramar Intercapital Corp and Wilson's chief operating officer,
V. Jerome Kaplan, and other managers.
    Enro Acquisition also assumed most of the units'
liabilities including a 6.2 mln dlrs term loan.
    Completion of the sale and recent sales of substantially
all the assets of the company's 50 pct owned affiliate GMW
Industries INc, are expected to result in a net gain of about
nine mln dlrs in the first quarter of 1987.
    For the year ago first quarter, Wilson reported net income
of 28,000 dlrs, including a 103,000 dlrs credit, on sales of
15.8 mln dlrs.


.I 17601
.C
earn
.W
ELSINORE CORP <ELX> YEAR LOSS.
    LAS VEGAS, Nev., March 31 -
    Shr loss 4.05 dlrs vs loss 2.47 dlrs
    Net loss 39,598,000 vs loss 24,152,000
    Revs 96.0 mln vs 87.9 mln
    Note: Current year figures include 7.2 mln dlr provision
for anticipated loss on note receivable, 25.4 mln dlr writedown
on asset carrying value and 8.5 mln dlr provision for future
operating losses at Elsinore Shore Associates.
    Prior year figures include 10.5 mln dlr provision for
future losses at Elsinore Shore Associates.


.I 17602
.C
oilseed
.W
EC MINISTER SEES OILS TAX STILL IN NEGOTIATION.
    BRUSSELS, March 31 - The outcome of negotiations on
proposals by the European Commission for a 330 Ecus a tonne tax
on EC-produced and imported oilseeds and marine oils remains
difficult to predict, Belgian agriculture minister Paul de
Keersmaeker told a news conference.
    De Keersmaeker, who chaired a meeting of EC farm ministers
which ended today, was asked about reports enough countries
were against the tax to ensure that it would be defeated in
negotiations on the EC farm price package for 1987/88.
    He said it was true some countries were strongly opposed,
but others were less so and others basically in favour.
    "I think there is room for negotiations, and I would not
want to make any predictions at this stage," de Keersmaeker
said.
    Yesterday, British minister Michael Jopling said Britain,
West Germany, Portugal, the Netherlands and Denmark were
opposed to the measure. Between them these countries have more
than enough voting power to block it.
    Diplomatic sources said at today's meeting the Spanish
delegation also expressed strong reservations about the idea.


.I 17604
.C
earn
.W
GRUNTAL FINANCIAL <GRU> 2ND QTR FEB 27 NET.
    NEW YORK, March 31 -
    Shr primary 33 cts vs 33 cts
    Shr diluted 27 cts vs 32 cts
    Net 3,669,000 vs 3,556,000
    Revs 58.2 mln vs 56.6 mln
    Avg shrs primary 11.2 mln vs 11.1 mln
    Avg shrs diluted 15.1 mln vs 11.1 mln
    Six mths
    Shr primary 43 cts vs 46 cts
    Shr diluted 37 cts vs 45 cts
    Net 4,711,000 vs 4,879,000
    Revs 101.9 mln vs 95.7 mln
    Avg shrs primary 11.2 mln vs 10.9 mln
    Avg shrs diluted 15.1 mln vs 10.9 mln


.I 17605
.C
carcass
.W
EC MINISTERS EXTEND BEEF, MILK MARKETING YEARS.
    BRUSSELS, March 31 - European Community agriculture
ministers agreed to extend the 1986/87 milk and beef marketing
years to the end of May, Belgian minister Paul de Keersmaeker
told a news conference.
    He said the reason for the two-month extension of the only
EC farm product marketing years which end during the spring
months was that it would be impossible for ministers formally
to agree 1987/88 farm price arrangements before May 12.
    This is when the European Parliament is due to deliver its
opinion on price proposals from the EC Commission.


.I 17606
.C
trade
.W
WHITE HOUSE DISCOUNTS THREAT OF TRADE WAR.
    WASHINGTON, March 31 - President Reagan has reaffirmed his
opposition to protectionism and his chief spokesman said trade
sanctions imposed on Japan were unlikely to start a trade war.
    "We don't want to go down that road," Reagan was quoted as
telling Prime Minister Jacques Chirac after the visiting French
official expressed concern about the rising tide of
protectionist sentiment in the United States.
    Later, White House spokesman Marlin Fitzwater defended the
new sanctions against Japan and said administration officials
"do not believe this will result in a trade war."
    "It is the first time that the United States has taken an
action of this type and it is significant but it is nothing to
be alarmed about," the presidential spokesman added.
    "We do not want protectionism ... We do not want a trade
war," he said.
    Fitzwater said the president was forced to act in the
Japanese microchip case because Tokyo had failed to fulfill "an
agreement to make some corrections."
    Noting that there are "enormous pressures in the Congress
and the land" for the United States to take a tough stand, he
said, "This was a case where we felt we simply had to act."
    Fitzwater said the decision to impose sanctions was "well
considered by this administration and not taken lightly."
    While the White House official held open the possibility
that Washington and Tokyo will settle their trade dispute, he
indicated a settlement probably would not come in time to head
off the sanctions.
    "We are always open to negotations ... Whether it (a
settlement) could occur in time to prevent this (the sanctions)
from going into effect is questionable at this point," the
spokesman said.
    The sanctions take effect in mid-April.


.I 17607
.C
lei
.W
WHITE HOUSE WELCOMES RISE IN INDICATORS.
    WASHINGTON, March 31 - The White House welcomed last
month's 0.7 pct increase in the Index of Leading Economic
Indicators, the government's key barometer of future economic
growth.
    The increase reversed a decline in January of 0.5 pct.
    Presidential spokesman Marlin Fitzwater said the new
figures signalling more economic growth in coming months showed
that the index was "back on track" after its downturn at the
first of the year.


.I 17610
.C
earn
.W
CENTURI INC <CENT> YEAR NET.
    BINGHAMTON, N.Y., March 31 -
    Oper shr 13 cts vs six cts
    Oper net 2,124,013 vs 909,158
    Revs 168.6 mln vs 157.6 mln
    NOTE: 1986 and 1985 years exclude loss discontinued
operations 6,974,554 dlrs, and 268,000 dlrs, respectively.


.I 17611
.C
acq
.W
STANDEX INTERNATIONAL <SXI> BUYS BRITISH FIRM.
    SALEM, N.H., March 31 - Standex International Corp said it
acquired <Alan Duffy Engineering Ltd> of Blackburn, Lancashire,
England, for an undisclosed amount of cash.
    The newly-acquired company will operate as part of
Standex's Perkins division, the company said.


.I 17612
.C
money-fx
.W
TREASURY'S BAKER PURSUING S. ASIAN REVALUATIONS.
    WASHINGTON, March 31 - Treasury Secretary James Baker told
the House Appropriations Committee the United States is still
pressing newly industrialized south Asian nations that have
tied their currencies to the dollar to let those currencies
strengthen against the U.S. currency.
    "We have seen some strengthening of those currencies (but)
not as much as we would like," he said.
    "We have been somewhat disappointed in the results so far,
but we intend to continue these discussions," he said.


.I 17614
.C
acq
.W
STERLING DRUG <STY> SELLS ASSETS OF SUBSIDIARY.
    NEW YORK, March 31 -  Sterling Drug Inc said it sold the
assets of its subsidiary Greene Dental Products Inc to Rinn
Corp, of Elgin, Ill.
    The cash purchase price was not disclosed.
    Greene produces and sells dental X-ray tabs, mount products
and record systems.


.I 17615
.C
trade
.W
******BALDRIGE SAYS U.S. TO GO AHEAD WITH JAPANESE SANCTIONS.
Blah blah blah.

.I 17616
.C
trade
.W
BALDRIGE SAYS U.S. TO IMPOSE JAPANESE SANCTIONS.
    WASHINGTON, March 31 - Commerce Secretary Malcolm Baldrige
said the United States would go ahead with planned 300 mln dlr
sanctions against Japanese semiconductor exports, despite any
U.S. Japanese talks to avert the trade curbs.
    He said in a speech to an export-import group that he was
sure the United States and Japan could work out their dispute
over unfair Japanese trade practices in semiconductor trade,
but "I am sure the sanctions will go in before we work it out."
    Sanctions are to be imposed on April 17.
    He also said he did not think there would be a trade war
with Japan, because Japan had too much value in exports to the
United States to risk such a war.
    "Those fears are unfounded," he said.
    He told reporters later that the sharp drop in the
securities market was not due to fears of a trade war, but fear
of inflation and that the Federal Reserve may act on that fact.
    Market reaction was also due, he said, to the drop in the
value of the dollar, although trade issues did have some
effect.
    Baldrige said that observers who were attributing the drop
in the market to trade sanctions were "barking up the wrong
tree."
    He said the market observers will realize this shortly.
    Baldrige said his remarks did not mean to suggest anything
about the market or the exchange rate of the dollar.


.I 17619
.C
trade
.W
SENIOR U.S. OFFICIAL TO VISIT JAPAN AS TRADE ROW GROWS.
    WASHINGTON, March 31 - Undersecretary of State Michael
Armacost will visit Tokyo next week for meetings with
high-level officials that will include discussions of a growing
trade row over Japanese semiconductor electronics products.
    He is the first high-level U.S. official to visit Japan
since President Reagan announced last week plans to impose
tariffs worth up to 30 mln dls on Japanese electronic goods on
April 17 in retaliation for Tokyo's alleged failure to live up
to a pact on microchip trade signed last September.
    The trip is set for April 6-8, the state department said.
   


.I 17620
.C
crude
.W
UNION PACIFIC <UNP>CLOSES VENEZUELAN PARTNERSHIP.
    NEW YORK, March 31 - Union Pacific Corp said it has closed
the previously announced 50-50 partnership with Petroleos de
Venezuela SA, Venezuela's national oil company, to own a
160,000 barrel per day refinery in Corpus Christi, Texas.
    Union Pacific said the partnership, called Champlin
Refining Co, will acquire the refining and distribution system
owned and operated by Union Pacific's Champlin Petroleum Co
subsidiary. The Venezuelan company also signed a 25-year
feedstock agreement with the partnership to supply at least
140,000 barrels a day of Venezuelan crude oil and naphtha at
market related prices.


.I 17624
.C
acq
.W
SCAN-GRAPHICS, CAPTIVE VENTURE CAPITAL MERGE.
    BROOMALL, Pa., March 31 - <Scan-Graphics Inc> said it has
completed a merger with <Captive Venture Capital Inc> in which
former shareholders of Scan-Graphics have beome majority
shareholders of the merged company and the Scan-Graphics board
has been named the board of the merged company.
    It said the merged company is now known as Scan-Graphics
Inc and expects to be listed on the NASDAQ system soon.
    It said Captive Venture issued 1,600,000 restricted
preferred shares convertible into 16 mln common shares for
Scan-Graphics.  Captive had 2,649,500 common shares outstanding
before the merger.


.I 17625
.C
earn
.W
NODAWAY VALLEY CO <NVCO> 4TH QTR JAN 31 NET.
    CLARINDA, Ia., March 31 -
    Shr 16 cts vs 23 cts
    Net 385,747 vs 549,928
    Revs 10.5 mln vs 9,037,596
    Year
    Shr 40 cts vs 58 cts
    Net 946,024 vs 1,352,709
    Revs 36.2 mln vs 30.6 mln


.I 17626
.C
earn
.W
<LIGHTNING MINERALS INC> YEAR LOSS.
    Edmonton, Alberta, March 31 -
    Shr loss four cts vs loss six cts
    Net loss 92,917 vs loss 104,038
    Revs 21.9 mln vs 5,091,000


.I 17627
.C
earn
.W
BOBBIE BROOKS INC <BBKS> YEAR NET.
    CLEVELAND, March 31 -
    Oper shr profit 41 cts vs loss 1.13 dlrs
    Oper net profit 3,093,000 vs loss 7,000,000
    Revs 35.9 mln vs 31.1 mln
    Avg shrs 7,508,096 vs 6,207,723
    NOTE: Current year excludes gain of about 2.5 mln dlrs or
33 cts/shr from benefit of tax loss carryforward and includes
pretax gain of about 1.2 mln dlrs from sale of export quota
rights.
    Year-ago includes charge of five mln dlrs from discontinued
operations.
    1985 is for eight mths ended Dec 31, 1985. In that year,
company changed to calendar year from previous fiscal year
ended April 27, 1985.


.I 17628
.C
earn
.W
CELLULAR COMMUNICATIONS INC <COMM> NINE MTHS.
    NEW YORK, March 31 - Dec 31 end
    Shr loss 1.26 dlrs vs loss six cts
    Net loss 11.4 mln vs loss 400,000
    Revs 12.5 mln vs 4,049,000
    NOTEL Company changed fiscal year to December 31 end.
    Prior year net includes gain 4,454,031 dlrs from sale of
minority interests in Connecticut partnerships.


.I 17629
.C
earn
.W
WILSON BROTHERS 4TH QTR.
    MIAMI, Fla, March 31 -
    Shr loss 30 cts vs loss 31 cts
    Net loss 1.0 mln vs loss 1.0 mln
    Revs 2.3 mln vs 1.7 mln
    Year
    Shr profit 0 10 cts vs loss 45 cts
    Net profit 508,000 vs loss 1.5 mln
    Revs 5.8 mln vs 6.7 mln
    NOTE:1986 year and qtr net includes loss of 37,000 dlrs and
538,000 dlrs, respectively from from discontinued operations.
1986 net includes 1.7 mln dlr credit. 1985 year and qtr
includes gain of 1.0 mln dlrs and loss of 190,000, respectively
from discontinued operations.



.I 17630
.C
earn
.W
(POLORON PRODUCTS INC) YEAR OPER NET.
    MIDDLEBURG, Pa., March 31 -
    Oper shr 26 cts vs 16 cts
    Oper net 948,000 vs 480,000
    Revs 25.4 mln vs 19.9 mln
    NOTE: Excludes loss of 6.7 mln dlrs or 1.82 dlrs/shr vs
gain of 453,000 dlrs or 15 cts from discontinued operations.
1985 also excludes extraordinary gain equal to 34 cts/shr.
    1986 ended Dec 31 and 1985 ended Nov 30. In 1986, company
changed fiscal year end to Dec 31.


.I 17631
.C
earn
.W
GENEX CORP <GNEX> YEAR LOSS.
    GAITHERSBURG, Md., March 31 -
    Shr loss 94 cts vs loss 1.25 dlrs
    Net loss 12.1 mln vs loss 15.9 mln
    Revs 3,307,000 vs 16.2 mln
    NOTE: Current year includes writedown of 8.5 mln dlrs.


.I 17632
.C
earn
.W
BIC CORP <BIC> SETS QUARTERLY.
    MILFORD, Conn., March 31 -
    Qtly div 15 cts vs 15 cts prior
    Pay April 30
    Record April 14


.I 17633
.C
earn
.W
CULP INC <CULP> SETS QUARTERLY.
    HIGH POINT, N.C., March 31 -
    Qtly div two cts vs two cts prior
    Pay May 26
    Record April 21


.I 17635
.C
trade
.W
BROADER U.S. EEP SOUGHT BY REPUBLICAN LAWMAKERS.
    WASHINGTON, MARCH 31 - Republican members of the House
Agriculture Committee said they will propose amendments
tomorrow to a pending trade bill increasing funding for the
export enhancement program, EEP, and significantly expanding
the scope of the program.
    At a press conference, Republican lawmakers said they would
propose expanding EEP to include all countries "willing to
purchase additional commodities at reasonable prices."
    In addition, the Congressmen said they would propose
extending the life of EEP to five years from the current three
years and increasing the EEP funding ceiling to 2.5 billion
dlrs from 1.5 billion at present.
    The Agriculture committee tomorrow will begin drafting
amendments to an omnibus trade bill now before the House.
    Responding to the Republican plan, Agriculture Secretary
Richard Lyng and Trade Representative Clayton Yeutter said they
favor a flexible, targeted use of EEP instead of an
across-the-board program which they termed too costly.
    The Republican Congressmen also said they will offer an
amendment to the trade bill instructing the U.S. Agriculture
Department to value the bonus commodities used for EEP at the
market value, rather than the cost of acquisition.
    But Lyng said USDA already plans to change to market value
accounting rather than acquisition value, in order to avoid
hitting a funding ceiling for eep of 1.5 billion dlrs.
    Lyng said under market value accounting only about 700 mln
dlrs of EEP commodities have been used to date. Using
acquisition value, USDA officials said the value is higher.


.I 17636
.C
earn
.W
WALL STREET STOCKS/AMES DEPT STORES <ADD>.
    NEW YORK, March 31 - Ames Department Stores Inc fell 1-7/8
to 23 in what analysts said was a reaction to a surprise
announcement earlier today by the company that earnings in the
fiscal year ended January 31 will decline sharply.
    Ames said it expects to report earnings of between 72 and
77 cts per share compared with 1.19 dlrs per share in the
previous year.
    "We were looking for 1.15 dlrs," said an analyst at a major
Wall Street firm who declined to be identified. Ames said most
of the decline resulted from an inventory shortage at its
Secaucus, N.J. distribution center.
    "The obvious suspicion is that there has been some kind of
fraud or theft," said Ralph Shulansky, senior vice president of
Ames. "We do not have hard evidence we are still putting things
together."
    He said it would take several weeks for the company to
complete an investigation. He said there are no law enforcement
officials involved at this time.
    He declined to quantify the inventory shortage but said it
was the major reason for the decline in earnings. A decline in
gross margin percentage and an increase in the effective tax
rate also contributed to the downturn, Ames said.


.I 17639
.C
earn
.W
TARO VIT INDUSTRIES LTD <TAROF> YEAR LOSS.
    MAMARONECK, N.Y., March 31 -
    Shr loss eight cts vs profit nil
    Net loss 488,759 vs profit 14,289
    Sales 6,067,676 vs 5,047,383


.I 17640
.C
acq
.W
TRIBUNE <TRB>, SCRIPPS <SCRP> EXCHANGE PAPERS.
    CHICAGO, March 31 - Tribune Co said it exchanged cash and
the assets of eight of its Sunbelt Publishing Co community
publications circulated in the Naples and Fort Myers, Fla.,
area for assets of nine community papers in suburban Tampa and
St. Petersburg published by Gulf Coast Newspapers Inc.
    Gulf Coast is a subsidiary of the E.W. Scripps Co (doing
business as Scripps Howard).
    No additional financial details were disclosed.


.I 17641
.C
trade
.W
U.S. OFFICIAL TO VISIT JAPAN AS TRADE ROW GROWS.
    WASHINGTON, March 31 - Undersecretary of State Michael
Armacost will visit Tokyo next week for meetings with
high-level officials that will include talks on the growing
trade row over Japanese semiconductor electronics products.
    He is the first high-level U.S. official to visit Japan
since President Reagan announced last week plans to impose
tariffs worth up to 30 mln dlrs on Japanese electronic goods on
April 17 in retaliation for Tokyo's alleged failure to live up
to a pact on microchip trade signed last September.
    Deputy State Department spokeswoman Phyllis Oakley said the
trip is set for April 6 to 8.
    U.S.-Japanese talks of this kind are regularly held each
year at this time, she told reporters.
    The Armacost discussions with Deputy Foreign Minister
Ryohei Murata and other senior Japanese officials will focus on
U.S.-Japanese foreign aid programs and political security
issues of mutual concern, she added.
    "Although an exchange of views on bilateral relations is
expected, the talks are not directly related to U.S.-Japanese
trade relations," she insisted.
    But, in response to questions, Oakley acknowledged that
trade will be discussed.
   Japan's 58.6 billion dlrs trade surplus with the United
States last year has come under fire in Congress, which is
concerned about the loss of jobs to foreign competition and
with the record 169 billion dlrs U.S. Trade deficit in 1986.


.I 17645
.C
acq
.W
******ROYEX OFFERS 50 DLRS/SHR AND 40 DLRS/WARRANT FOR INTERNATIONAL CORONA.
Blah blah blah.

.I 17648
.C
ship
.W
U.S. CARGO PREFERENCE SQUABBLE CONTINUES.
    WASHINGTON, March 31 - The U.S. Agriculture Department said
it will begin charging interest tomorrow on the over 12 mln
dlrs the Department of Transportation, DOT, owes USDA to pay
for its share of the cost of shipping food aid on U.S. vessels.
    USDA General Sales Manager Melvin Sims told the Senate
Appropriations Agriculture Subcommittee his department had
billed DOT 12 mln dlrs, and that interest on that amount and an
additional charge would begin accruing April 1.
    USDA's Foreign Agricultural Service Administrator Thomas
Kay told Reuters DOT could owe USDA as much as 20 mln dlrs.
    The two departments are trying to hammer out an accord on
how to fund the increasing share of food aid required to be
shipped on U.S. flag vessels under a 1985 farm bill provision
on cargo preference.
    Sims said the agencies were near to reaching a memorandum
of understanding governing how DOT would pay for its share of
the cargo preference costs.
    Under the 1985 bill, the percentage of food aid shipments
carried on U.S. vessels was to increase gradually over three
years to 75 pct in 1988 from 50 pct.
    Although the increased cost was to be funded by DOT, Sims
said that department to date has contributed no money.


.I 17649
.C
earn
.W
BARUCH-FOSTER CORP <BFO> 4TH QTR LOSS.
    DALLAS, March 31 -
    Shr loss 92 cts vs profit one ct
    Net loss 2,487,439 vs profit 48,709
    Revs 1,788,141 vs 4,167,070
    Year
    Shr loss 1.50 dlrs vs profit 48 cts
    Net loss 4,073,724 vs profit 1,309,412
    Revs 8,193,455 vs 15.7 mln
    NOTE: 1986 year net includes 3,095,305 dlr writedown of oil
properties and reserves.


.I 17658
.C
acq
.W
GOULD <GLD> DIVISION GETS FINANCING.
    PHILADELPHIA, March 31 - Gould Inc's systems protection
division said it selected Merrill Lynch Interfunding INc to
provide financing for the purchase of the division from the
parent company.
    Terms were not disclosed. The agreement was announced in
February and Gould expects the transaction to be completed by
the end of April.
    The agreement assures the retention of more than 600 jobs
at a northeast Philadelphia plant which had been in jeapardy
when Gould had accepted a tentative offer from Westinghouse INc
which was later terminated.


.I 17659
.C
acq
.W
WELBILT <WELB> COMPLETES ACQUISITIONS.
    NEW HYDE PARK, N.Y., March 31 - Welbilt Corp said it
completed the previously announced acquisitions of the assets
of L and M Manufacturing Co and Food Machinery Engineering Co,
two manufacturers of automated bakery production equipment
headquartered in Toronto.


.I 17660
.C
acq
.W
SCHWAB COMPLETES PURCHASE OF SCHWAB AND CO.
    SAN FRANCISCO, March 31 - Charles Schwab announced the
completion of the 280-mln-dlr purchase from BankAmerica Co of
Charles Schwab and Co Inc and its holding company Charles
Schwab Corp.
    The leveraged buyout is being financed by a syndicate of
seven banks led by the Security Pacific National Bank unit of
Security Pacific Corp <SPC>, the announcement said.
    Charles Schwab and Co is the nation's largest discount
brokerage firm.
    The Schwab announcement said BankAmerica received 175 mln
dlrs in cash, 50 mln of 10 pct senior subordinated debentures,
55 mln dlrs of nine pct junior subordinated debentures and the
right to receive 15 pct of the appreciated value of the common
equity of the new company over a maximum period of eight years.
    Security Pacific also acquired a stock appreciation right,
equal to 1.8 pct of the value of the new company's fully
diluted common stock, Schwab said.
    The right is exchangeable into warrants upon transfer to a
Security Pacific non-affiliate, Schwab said.
    BankAmerica originally acquired Schwab in 1983 for 57 mln
dlrs worth of BankAmerica common stock.
    The sale of the profitable discount brokerage firm back to
Charles Schwab was aimed at raising capital and was seen by
banking analysts as a means of heading off a hostile takeover
attempt by First Interstate Bancorp <I>.


.I 17663
.C
acq
.W
ROYEX MAKES BID FOR INTERNATIONAL CORONA.
    TORONTO, March 31 - <Royex Gold Mining Corp> said it is
making an offer for <International Corona Resources Ltd> of 50
dlrs per share and 40 dlrs per warrant.
    The offer covers four mln Corona common shares and all
outstanding 9.50 dlr Corona share purchase warrants expiring
August 31, 1987, Royex said.
    Royex said that if it gains four mln Corona common shares,
its interest in Corona will increase to 50 pct from 38 pct. It
also said that if more than four mln shares are tendered, it
will pay for them on a pro rata basis.
    Royex said the purchase price for each Corona share
consists of one Royex convertible retractable zero coupon
Series B first preference share at 20 dlrs nominal value, one
Royex convertible 6-1/2 pct Series C first preference share at
20 dlrs nominal value, one five-year 7.50 dlr Royex share
purchase warrant and four dlrs in cash.
    The price for each Corona warrant consists of 1.75
convertible retractable zero coupon Series B first preference
share at 35 dlrs nominal value and one five-year 7.50 Royex
share purchase warrant.
     Royex said both series of preference shares will be
convertible into Royex common shares, initially on a basis of
3.33 common shares for each preference share converted.


.I 17668
.C
oilseed;grain;corn;soybean;
.W
******U.S. 1987 CORN, SOYBEAN ACREAGE ESTIMATES  CORN 67,556,000 ACRES, BEANS 56,885,000 - USDA.
Blah blah blah.

.I 17669
.C
wheat;grain;
.W
******U.S. 87 WINTER WHEAT PLANTINGS 48,195,000  ACRES, DURUM 3,137,000, OTHER SPRING 13,515,000.
Blah blah blah.

.I 17670
.C
cotton;sorghum;
.W
******U.S. 1987 COTTON, SORGHUM ACRES ESTIMATED ALL COTTON 10,353,700, SORGHUM 11,844,000 USDA.
Blah blah blah.

.I 17671
.C
wheat;grain;
.W
******USDA PUTS MARCH 1 U.S. WHEAT STOCKS AT  2,253,143,000 BU.
Blah blah blah.

.I 17672
.C
sugar
.W
******U.S. 1987 SUGARBEET ACREAGE ESTIMATED BY  USDA AT 1,249,000 ACRES VS 1,232,500 IN 1986.
Blah blah blah.

.I 17673
.C
oilseed;grain;corn;soybean;
.W
******USDA PUTS MARCH 1 U.S. CORN STOCKS AT  8,246,849,000 BU, SOYBEANS - 1,384,208,000.
Blah blah blah.

.I 17675
.C
earn
.W
OVERLAND EXPRESS INC <OVER> YEAR LOSS.
    INDIANAPOLIS, March 31 -
    Shr loss 9.31 dlrs vs loss 1.62 dlrs
    Net loss 16.2 mln vs loss 2,770,243
    Revs 99.4 mln vs 96.2 mln


.I 17678
.C
earn
.W
A.H. ROBINS <QRAH> FILES MONTHLY REPORT.
    RICHMOND, Va., March 31 - A.H. Robins Co said it filed its
consolidated net earnings report for February, which amounted
to 6,720,000 dlrs, compared to 4,646,000 for the comparable
month the year prior.
    Consolidated net earnings for the two months ended Feb 28,
1987, amounted to 23.9 mln dlrs, compared to 15.4 mln dlrs for
the comparable period a year earlier, it said.
    A.H. Robbins, which is in Chapter 11, said it filed the
report with the U.S. trustee overseeing its case.


.I 17680
.C
acq
.W
BUTLER <BTLR> TO PURCHASE NATURALITE.
    KANSAS CITY, Mo, March 31 - Butler Manufacturing Co said it
signed a letter of intent to purchase <Naturalite Inc>, a
designer of skylights.
    Terms were not disclosed.
    Naturalite had sales of about 20 mln dlrs in 1986. The
transaction is expected to be completed in May and subject to
both boards' approvals.


.I 17682
.C
earn
.W
MECHTRON INTERNATIONAL CORP <MCHT> YEAR NET.
    ORLANDO, Fla., March 31 -
    Shr three cts vs 80 cts
    Net 46,000 vs 1,220,000
    Revs 11.5 mln vs 13.0 mln
    Avg shrs 1,608,000 vs 1,530,000


.I 17684
.C
earn
.W
DEVON RESOURCE INVESTORS <DIN> YEAR END DEC 31.
    OKLAHOMA CITY, March 31 -
    Shr loss 14 cts vs profit 23 cts
    Net loss 835,000 vs profit 950,000
    Revs 8,617,000 vs 11.8 mln


.I 17685
.C
acq
.W
SAFETY-KLEEN <SK> COMPLETES ACQUISITION.
    ELGIN, Ill., March 31 - Safety-Kleen Corp said it has
completed the acquisition of McKesson Envirosystems Co, a unit
of McKesson Corp <MCK> for an undisclosed amount.
    Safety-Kleen, an industrial, automotive parts cleaning
service, said McKesson Envirosystems has solvent recycling
plants in Illinois, Kentucky and Puerto Rico.


.I 17687
.C
pet-chem
.W
DOW <DOW> AMENDS RESINS PRICE INCREASE.
    MIDLAND, Mich., March 31 - Dow Chemical Co's Thermoplastic
Resin Department said it is amending a recent price increase
for Magnum ABS (A) resins announced March 3 for an effective
date of April 1.
    Dow said that effective April 15 the selling prices for
most grades of Magnum ABS resins for the injection molding,
custom sheet and automotive markets will rise six cts a pound,
instead of the three cts a pound announced previously.
    Dow also said that the selling prices for performance
grades of the resins to the same markets will increase eight
cts a pound, rather than five cts as announced before.
    The company said that Magnum ABS resins for pipe extension
will increase three cts a pound, effective April 9, as
previously reported.
    Dow said it altered the increase to reflect changes in the
industry over the past month.


.I 17689
.C
gold
.W
ECHO BAY HAS NEVADA GOLD DISCOVERY.
    EDMONTON, Alberta, March 31 - Echo Bay Mines Ltd said it
discovered a gold deposit in the Cove area near its McCoy gold
mine in Nevada.
    Echo Bay said it encountered gold in 39 of 42 drill holes
at Cove. It said seven holes averaged 0.185 ounce gold a short
ton and 1.8 ounces of silver, with the seven intersections
averaging 118 feet in thickness beneath 25 feet of overburden.
    The discovery is on the McCoy property, one mile northeast
of the McCoy open pit, heap leach gold mine, which is expected
to produce about 85,000 ounces of gold this year, Echo Bay
said.


.I 17690
.C
earn
.W
BOWL AMERICA INC <BWLA> UPS PAYOUT.
    ALEXANDRIA, Va., March 31 -
    Qtly div 11 cts vs 10 cts prior
    Pay May 14
    Record April 17


.I 17691
.C
earn
.W
CONCORD FABRICS INC <CIS> 2ND QTR NET.
    NEW YORK, March 31 - 
    Shr 62 cts vs 38 cts
    Net 1,110,484 vs 677,192
    Revs 36.6 mln vs 31.1 mln
    Six mths
    Shr 92 cts vs 68 cts
    Net 1,649,453 vs 1,211,597
    Revs 68.2 mln vs 58.5 mln
    


.I 17692
.C
earn
.W
AMERICAN PACESETTER <AEC> 4TH QTR NET.
    NEWPORT BEACH, Calif., March 31 -
    Oper shr profit 92 cts vs loss six cts
    Oper net profit 1,351,000 vs loss 112,000
    Revs 22.8 mln vs 28.7 mln
    Avg shrs 1,465,926 vs 1,968,601
    Year
    Oper shr profit 1.81 dlrs vs profit three cts
    Oper net profit 2,837,000 vs profit 59,000
    Revs 84.8 mln vs 69.9 mln
    Avg shrs 1,569,287 vs 1,980,432
    Note: Current qtr figures exclude gain from discontinued
operations of 533,000 dlrs, or 37 cts per share vs loss of
480,000 dlrs, or 24 cts per share.
    Current year figures exclude gain from discontinued
operations of 752,000 dlrs, or 48 cts per share vs loss of
452,000 dlrs, or 23 cts per share.


.I 17694
.C
crude;nat-gas;
.W
DEVON <DIN> REPORTS INCREASE IN RESERVES.
    OKLAHOMA CITY, March 31 - Devon Resource Investors said as
of January one, its estimated proven reserves increased
by 443,000 net equivalent barrels to 32.4 billion cubic feet of
natural gas and 660,000 barrels of oil, compared with 29.5 bcf
of gas and 700,500 barrels of oil as of Jan one, 1986.
    Devon said that its estimated future net revenues
attributable to reserves is about 58 mln dlrs with a present
value, discounted at 10 pct, of 38 mln dlrs.
    It also said that it expects to have sufficient cash flow
to cover its annual payout of 60 ct per unit and expand its
drilling budget in 1987.


.I 17695
.C
earn
.W
CORRECTED-ELDER-BEERMAN STORES CORP<ELDR>4TH QTR.
    DAYTON, Ohio, March 31 - Feb One end
    Oper shr 89 cts vs 1.31 dlrs
    Oper net 3,348,000 vs 4,885,000
    Sales 126.8 mln vs 120.1 mln
    Year
    Oper shr 1.67 dlrs vs 2.15 dlrs
    Oper net 6,302,000 vs 8,013,000
    Sales 380.9 mln vs 352.1 mln
    NOTE: Prior year net both periods excludes gain 1,998,000
dlrs from reversion of overfunded pension plans.
    Corrects current year operating net.


.I 17696
.C
trade
.W
CORRECTION  - SENIOR U.S. OFFICIAL.
    In WASHINGTON story headlined "SENIOR U.S. OFFICIAL TO VISIT
JAPAN AS TRADE ROW GROWS" please read in 2nd graf ... tariffs
worth up to 300 mln dlrs ... correcting amount


.I 17697
.C
earn
.W
GETTY PETROLEUM <GTY> YEAR NET.
    PLAINVIEW, N.Y., March 31 -
    Shr 1.54 dlrs vs 1.09 dlrs
    Qtly div four cts vs four cts prior
    Net 17.1 mln vs 11.5 mln
    Revs 953.2 mln vs 1.33 billion
    Avg shrs 11.1 mln vs 10.5 mln
    NOTE: Cash dividend payable April 21 to holders of record
April 10. Shr figures adjusted for five pct stock dividend
declared March 31.


.I 17698
.C
earn
.W
GETTY PETROLEUM <GTY> SETS STOCK DIVIDEND.
    PLAINVIEW, N.Y., March 31 - Getty Petroleum Corp said its
board declared a five pct stock dividend payable on April 21 to
shareholders of record April 10.
    The company also declared a regular cash dividend of four
cts a share and reported 1986 net income rose to 17.1 mln dlrs
from 11.5 mln dlrs.


.I 17699
.C
earn
.W
1ST CENTRAL FINANCIAL <FCC> SEES HIGHER EARNINGS.
    NEW YORK, March 31 - First Central Financial Corp said it
expects earnings to rise significantly in 1987 and said it is
actively seeking an acquisition.
    The property and casualty insurance company's chairman and
chief executive officer, Martin J. Simon, told Reuters in an
interview that he expects earnings of 33 cts a share in 1987
compared with 25 cts a year ago.
    He said, "the company currently has the sufficient momentum
to achieve those earnings and the successful completion of
licensing applications to operate in Pennsylvania, Delaware,
Connecticut and Ohio should fuel our earnings."
    The company is currently licenced to operate only in New
York state.
    Simon estimated that the company would earn seven cts a
share in the first quarter compared to three cts in the same
quarter a year ago, and eight cts a share in the second quarter
compared to five cts earned in 1986. He expects the company to
earn nine cts a share for each of the final two quarters of
1987.
    In addition, Simon said, First Central Financial "is
actively looking for, and has several acquisition brokers
looking for a small life insurance company to acquire."
    He said the acquisition should be in the 10 mln dlr range
and will be part of a strategy of expanding the company into a
"wide spectrum of insurance services." No specific company has
been targeted as yet, "but I would like to make my first
acquisition in 1987," he said.
    He said First Central Financial would not itself be an easy
takeover target. It wants to remain independent, he said, and
has implemented a staggered board of directors system. In
addition, Simon, the company's biggest shareholder, holds about
960,000 of the 6.2 mln ouitstanding shares.


.I 17700
.C
gold
.W
ECHO BAY <ECO> HAS NEVADA GOLD DISCOVERY.
    EDMONTON, Alberta, March 31 - Echo Bay Mines Ltd said it
discovered a gold deposit in the Cove area near its McCoy gold
mine in Nevada.
    Echo Bay said it encountered gold in 39 of 42 drill holes
at Cove. It said seven holes averaged 0.185 ounce gold a short
ton and 1.8 ounces of silver, with the seven intersections
averaging 118 feet in thickness beneath 25 feet of overburden.
    The discovery is on the McCoy property, one mile northeast
of the McCoy open pit, heap leach gold mine, which is expected
to produce about 85,000 ounces of gold this year, Echo Bay
said.


.I 17701
.C
crude
.W
IMPERIAL OIL <IMO.A> IN TALKS WITH SUPPLIERS.
    TORONTO, March 31 - Imperial Oil Ltd, 70 pct-owned by Exxon
Corp <XON>, is negotiating with it major crude oil suppliers
concerning the effects of a trial deregulation of Alberta's
shut-in crude oil production, scheduled to be implemented on
June 1, a company spokesman said.
    "From our point of view, it's a question of entering into
negotiations or discussions to make appropriate changes to
contracts to reflect the changes that are going to take place
on June 1," spokesman John Cote told Reuters in reply to a
query.
    Commenting on published reports that Imperial had suspended
its oil supply contracts, Cote said: "It's not a question of
cancelling or suspending any of the agreements at this point."
    On June 1, Alberta's Energy Resources Conservation Board
will lift its crude oil marketing prorationing system,
regulating shut-in light and medium crude production, on a
trial basis to the end of 1987.
    Under the new system, producers and refiners will be
allowed to negotiate volumes of shut-in oil to be delivered
under purchase contracts.
    Shut-in crude is the surplus between the total amount of
oil being produced and the amount being purchased by refiners.
    "We have talked to a number of our major suppliers, and
we've discussed the upcoming change with them, but nothing has
been finalized," Imperial's manager of western crude supply Gary
Strong said.
    Under Alberta's trial system, Imperial wants to match a
reasonable supply of crude against the company's forecast
demand for its refineries, Strong said.
    "We have to know what they have and how that relates to what
we need in total," he said.
    Strong said figures on the amount of crude production
Imperial purchases from outside suppliers were not immediately
available.


.I 17702
.C
grain;cotton;rice;
.W
USDA AGAIN EXTENDS FARM OPERATING PLAN DEADLINE.
    WASHINGTON, March 31 - The U.S. Agriculture Department said
it has extended until April 17 the date by which Agricultural
Stabilization and Conservation county offices must determine
eligibility of individuals or other entities for payments under
1987 farm programs.
    Jerome Sitter, director of ASCS's Cotton, Grain and Rice
Price Support Division, said the decision meant farmers have
until April 17 to file a farm operating plan indicating how
many persons would be involved in their farming operations.
    Earlier this year USDA extended the deadline to April 1
from March 1, Sitter said.
    ASCA Administrator Milton Hertz said in a statement that
the extension was necessary because of heavy workloads at
county ASCS offices.
    Hertz said ASCS county officials "have had to make a large
number of eligibility determinations for individuals and other
entities, such as corporations and partnerships, in preparation
for imposing the 50,000-dlr-per-entity cap."
    "These offices already had a very heavy workload due to the
large number of applications for both the 1987 farm programs
and the Conservation Reserve Program," Hertz said.


.I 17705
.C
earn
.W
HARVARD INDUSTRIES <HAVA> ANNOUNCES STOCK SPLIT.
    ST. LOUIS, March 31 - Harvard Industries Inc said its board
approved a two-for-one stock split in the form of a special
stock dividend of its outstanding common stock.
    The special dividend is payable May 28, 1987, to
stockholders of record April 24, 1987.
    The split will be effected by one additional share for each
common share held, the company said.


.I 17706
.C
earn
.W
OVERLAND EXPRESS INC <OVER> YEAR LOSS.
    INDIANAPOLIS, March 31 -
    Shr loss 9.31 dlrs vs loss 1.62 dlrs
    Net loss 16.2 mln vs loss 2.8 mln
    Revs 99.4 mln vs 96.5 mln
    NOTE: 1986 includes loss of 3.9 mln dlrs from
restructuring.
    NOTE: loss 1986 includes 3.9 mln dlrs for restructuring
costs associated with disposal of property.
    Loss also includes the sale-at-a-loss of the company's
aircraft.


.I 17707
.C
wheat;grain;
.W
USDA ACCEPTS BID FOR BONUS WHEAT TO ALGERIA.
    WASHINGTON, March 31 - The U.S. Agriculture Department said
it had accepted a bid for an export bonus to cover a sale of
durum wheat to Algeria.
    USDA General Sales Manager Melvin Sims said the Commodity
Credit Corp accepted one bid from Cam USA Inc on a sale of
18,000 tonnes of durum wheat.
    Sims said the bonus was 42.44 dlrs per tonne and shipment
was scheduled for June 20-30, 1987.
    An additional 246,000 tonnes of durum wheat are still
available to Algeria under the export enhancement program.


.I 17711
.C
earn
.W
ARTRA GROUP INC <ATA> 4TH QTR OPER LOSS.
    NORTHFIELD, Ill., March 31 -
    Oper shr loss 1.60 dlrs vs loss 1.17 dlrs
    Oper net loss 4,261,000 vs loss 2,816,000
    Revs 28.9 mln vs 11.7 mln
    Avg shrs 2,817,616 vs 2,685,592
    Year
    Oper shr profit 23 cts vs loss 1.10 dlrs
    Oper net profit 863,000 vs loss 2,390,000
    Revs 85.9 mln vs 60.4 mln
    Avg shrs 2,754,258 vs 2,541,967
    NOTE: Excludes loss of 1.9 mln dlrs vs loss 3.5 mln dlrs in
qtr and gain 46,000 dlrs vs loss 3.9 mln dlrs in year from
discontinued operations.
    Also excludes loss of 1.7 mln dlrs in current qtr from
reversal of tax loss carryforwards.
    Includes gain of 6.6 mln dlrs in current year from purchase
of Envirodyne Industries Inc shares and charge of 1.4 mln dlrs
in current qtr from research and development costs.
    1986 both periods includes operations of Sargent-Welch
Scientific Co, acquired on Nov 30, 1986 and interest in
Rosecraft Inc since June 4 and Lawrence Jewelry Corp since Oct
22.
    1985 both periods includes interest in R.N. Koch Inc since
Feb 8, 1985.


.I 17717
.C
wheat;grain;rice;
.W
CCC CREDITS FOR MEXICO SWITCHED TO WHEAT--USDA.
    WASHINGTON, March 31 - The Commodity Credit Corporation
(CCC) has switched 10 mln dlrs in credit guarantees to Mexico
to cover purchases of U.S. wheat, the U.S. Agriculture
Department said.
    The credit guarantees were previously earmarked for sales
of U.S. dry edible beans and rice, it said.
    The action reduces the guarantee lines previously
authorized of dry edible beans to by five mln dlrs to 45 mln
dlrs and for rice from five mln to zero and increases coverage
for wheat sales from five mln to 15 mln dlrs.


.I 17719
.C
acq
.W
ALLIED-SIGNAL <ALD> COMPLETES UNIT SALE.
    MORRIS TOWNSHIP, N.J., March 31 - Allied-Signal Inc said it
completed the previously announced sale of its Linotype Group
to Commerzbank AG of West Germany.
    The purchase price was not disclosed.
    Eschborn, West Germany-based Linotype had 1986 sales of
more than 200 mln dlrs, the company said.


.I 17720
.C
trade
.W
U.S. OFFICIAL SEES EVIDENCE OF EXPORT GROWTH.
    WASHINGTON, March 31 - Beryl Sprinkel, chairman of the
White House Council of Economic Advisers, said he sees "growing
but incomplete evidence that (U.S.) export volumes are finally
strengthening."
    In remarks prepared for a speech today in Los Angeles,
Sprinkel said the decline in the dollar's value since 1985 had
"largely" restored U.S. cost competitiveness in world markets and
appeared to signal an end to U.S. trade imbalances.
    "I am confident that further improvements in our trade
performance will contribute significantly to U.S. growth in
1987," he said.


.I 17722
.C
interest
.W
******CITIBANK SAYS IT RAISES BASE RATE TO 7-3/4 PCT FROM 7-1/2 PCT.
Blah blah blah.

.I 17723
.C
acq
.W
GAF <GAF> PLANS NO CHANGES IF OFFER ACCEPTED.
    HOUSTON, March 31 - GAF Corp chairman Samuel Heyman told
Reuters he did not foresee major changes in Borg-Warner <BOR>
if GAF's 46 dlr-per-share offer to acquire Borg-Warner is
successful.
    "We have great respect for Borg-Warner mangagement," Heyman
said, following a speech at the American Institute of Chemical
Engineers annual meeting. "We don't have any particular changes
in mind."
    Earlier today, GAF announced that a 3.16-billion-dlr-offer
was presented to the board of directors of the Chicago-based
company.
    Last week, GAF had purchased additional shares of the
company for 40-1/8 dlrs, increasing its stake in Borg-Warner to
19.9 pct.
    In 1985, GAF made an unsuccessful effort to acquire Union
Carbide Corp for five billion dlrs, and has since expressed an
interest in acquiring a chemical company that would complement
its own chemical business.
    When asked whether GAF would consider selling the
non-chemical assets of Borg-Warner if its takeover offer is
accepted, Heyman declined to comment.
    He also refused to say whether GAF would consider
increasing its the dollar value of its takeover offer if the
initial proposal is rejected.
    Heyman emphasized that he considered the GAF offer to
Borg-Warner to be a friendly one.
    "We think we made a fair offer that is good for Borg-Warner
management and good for its shareholders," Heyman said.
     In his speech, Heyman said he feared too many chemical
companies were attempting to specialize in the same high margin
niche products.
    He said they were turning their backs on core commodity
chemical businesses. 
    Heyman said the chemical industry has taken a total of
seven billion dlrs in pre-tax writeoffs during the past two
years to trim balance sheets.
    He predicted that the U.S. chemical industry, which
reported a total of 13 billion dlrs in 1986 profits, would see
a 20 pct gain in earnings this year because of increasing
exports, cheaper feedstock costs and the weakened U.S. dlr.


.I 17725
.C
earn
.W
TRANSWORLD LIQUIDATING <TWT> TO DISTRIBUTE.
    NEW YORK, March 31 - Transworld Corp Liquidating Trust said
it expects to make an initial distribution to beneficiaries
valued at 20.10 dlrs per unit from the proceeds of the sale of
Hilton International Co.
    The value of the distribution assumes yesterday's closing
price of UAL's common stock of 56.50 dlrs per share.
    Earlier, UAL announced that it completed the purchase of
Hilton International Co for 835.7 mln dlrs in cash and 2.5 mln
shares of UAL Inc common stock.
    Total value of the sale is about 977.2 mln dlrs, Transworld
said.
    Pursuant to the sale, UAL exercised its option to
substitute cash for 200 mln dlrs of debentures and 55,493
shares of common stock, Transworld Liquidating said.
    Each unit of beneficial interest in the trust will be
allocated 0.051675 shares of UAL common stock.
    The aggregate value of the distribution is 975.8 mln dlrs.
The balance of the cash in the trust will be held by the Trust
until April 29 and will be used to satisfy all ouststanding
liabilities and obligations of the trust.
    After satisfaction of its liabilities and obligations, the
trust would make a second distribution to its beneficiaries of
any remaining cash on or about April 29.
    Trading in the beneficial interests, which are listed on
the New York Stock Exchange, will cease after today. In order
to receive the distribution, beneficiaries must surrender the
certificates representing their beneficial interests.
    The trust was formed at year end 1986 to facilitate the
sale of Hilton International.


.I 17726
.C
earn
.W
MOBILE AMERICA CORP <MAME> YEAR END DEC 31.
    JACKSONVILLE, Fla., March 31 -
    Shr 2.25 dlrs vs 1.35 dlr
    Net 1,199,791 vs 724,755
    Revs 11.7 mln vs 9,105,952


.I 17727
.C
housing
.W
U.S. SENATE PASSES HOUSING BILL.
    WASHINGTON, March 31 - The Senate passed a two year
extension of federal housing programs, including 15 billion
dlrs for lower income housing assistance over two years. The
vote was 71 to 27.
    Total value of the bill was estimated at 31 billion dlrs.
The bill permanently extended the authorization for Federal
Housing Authority mortgage insurnce.
    The bill also extended the urban development grant program,
the national flood insurance act, the rural housing program as 
well as several other housing programs. The bill now goes to
the House.


.I 17728
.C
earn
.W
INTERNATIONAL DAIRY QUEEN <INDQA> 1ST QTR NET.
    MINNEAPOLIS, March 31 - Ended February 28.
    Shr 18 cts vs 13 cts
    Net 1,706,601 vs 1,226,609
    Rev 42.7 mln vs 36.3 mln
    Avg shares 9,695,444 vs 9,537,043
    NOTE: Company's full name is International Dairy Queen Inc.


.I 17729
.C
earn
.W
DE TOMASO INDUSTRIES INC <DTOM> YEAR NET.
    RED BANK, N.J., March 31 -
    Shr 2.90 dlrs vs 1.44 dlrs
    Net 8,862,000 vs 4,391,000
    Revs 221.6 mln vs 265.3 mln
    NOTE: Translated from Italian lire in U.S. dollar
equivalents at the exchange rate prevailing at Dec 31, 1986.


.I 17730
.C
earn
.W
******COLEMAN SEES 23 CTS A SHR 1ST QTR CHARGE FROM HEAT EXCHANGER REPLACEMENT PROGRAM .
Blah blah blah.

.I 17733
.C
veg-oil;wheat;grain;cotton;
.W
U.S. CREDITS FOR ECUADOR SWITCHED TO VEG OIL.
    WASHINGTON, March 31 - The Commodity Credit Corporation
(CCC) switched five mln dlrs in credit guarantees to Ecuador to
provide for more sales of U.S. vegetable oil, the U.S.
Agriculture Department said.
    The credit guarantees were previously earmarked for sales
of U.S. cotton, feedgrains and wheat.
    The action reduces the guarantee lines previously
authorized for sales of cotton from 1.5 mln dlrs to 500,000
dlrs, for feedgrains from four mln to two mln and for wheat
from 45 mln dlrs to 43 mln dlrs and increases coverage for
vegetable oil sales from two mln to seven mln dlrs, the
department said.


.I 17736
.C
earn
.W
COLEMAN <CLN> SEES 1ST QTR CHARGE.
    WICHITA, KAN., March 31 - Coleman Co said it expects a
first-quarter charge against earnings of 1.6 mln dlrs, or 23
cts a share, as a result of its voluntary program to replace
condensing heat exchangers in its early Model 90 series
high-efficiency residential gas furnaces.
    The company said extensive testing indicates a problem
found in the furnaces is not safety related. Coleman said it
noted an increasing number of heat exchangers in certain
furnaces made from March 1984 through December 1985 were
returned because of corrosion.


.I 17741
.C
acq
.W
PHILADELPHIA SUBURBAN <PSC> BUYS SOFTWARE FIRM.
    BRYN MAWR, Pa., March 31 - Philadelphia Suburban Corp said
it acquired Mentor Systems Inc, a Lexington, Ky., computer
software company, for common stock.
    Detailed terms were not disclosed.
    Mentor specializes in public sector accounting systems. It
has 73 employees at its Lexington facility, four branch offices
in the Midwest and one in New York.


.I 17744
.C
earn
.W
******PACIFIC GAS SAID ACCOUNTING CHANGE WILL REDUCE 1987 NET BY 470 MLN DLRS.
Blah blah blah.

.I 17745
.C
earn
.W
TRIBUNE/SWAB-FOX COS INC <TSFC> 4TH QTR LOSS.
    TULSA, OKLA., March 31 -
    Shr loss 15 cts vs nil
    Net loss 4,356,285 vs profit 300,000
    Year
    Shr loss 12 cts vs profit five cts
    Net loss 2,744,826 vs profit 2,490,262
    NOTE: 1985 earnings restated for discontinued operations
    Per-share results reflect payment of preferred dividends
    Company did not release revenues


.I 17746
.C
earn
.W
BARRINGER RESOURCES INC <BARR> YEAR END DEC 31.
    DENVER, March 31 -
    Shr profit 70 cts vs loss 33 cts
    Net profit 2,598,000 vs loss 687,000
    Revs 7,438,000 vs 6,467,000
    NOTE: 1986 net includes 2,168,000 dlrs or 61 cts a share
for gain on cancellation of long-term debt through a debenture
offer.


.I 17747
.C
earn
.W
CONCORD FABRICS INC <CIS> 2ND QTR OPER NET.
    NEW YORK, March 31 - Ended March one
    Oper shr 47 cts vs 41 cts
    Oper net 840,484 vs 732,000
    Revs 36.6 mln vs 31.1 mln
    Six mths
    Oper shr 77 cts vs 75 cts
    Oper net 1,379,453 vs 1,338,346
    Revs 68.2 mln vs 58.5 mln
    NOTE: Excludes net gain of 27,000 dlrs or 15 cts/shr in
current qtr and six mths from disposal of discontinued
operations.
    Year-ago excludes loss of 54,808 dlrs or three cts in qtr
and 126,749 dlrs or seven cts in six mths from discontinued
operations.


.I 17749
.C
earn
.W
P.C. QUOTE INC <PCQT> YEAR LOSS.
    CHICAGO, March 31 -
    Shr loss 30 cts vs loss 44 cts
    Net loss 1,135,805 vs loss 1,461,792
    Sales 3,398,893 vs 2,075,260


.I 17751
.C
earn
.W
<EXECUTIVE HOUSE INC> YEAR LOSS.
    CHICAGO, March 31 -
    Shr loss 26 cts vs loss six cts
    Net loss 535,110 vs loss 129,433
    Revs 787,000 vs 622,130


.I 17752
.C
earn
.W
LORI CORP <LRC> 4TH QTR OPER NET LOSS.
    NORTHFIELD, Ill., March 31 -
    Oper shr loss 14 cts vs loss 49 cts
    Oper net loss 22,000 vs loss 441,000
    Revs 22.6 mln vs 13.6 mln
    Year
    Oper shr profit 14 cts vs profit 47 cts
    Oper net profit 1,952,000 vs profit 2,794,000
    Revs 76.2 mln vs 56.4 mln
    NOTE: 1986 4th qtr and year oper net excludes a loss of
54,000 dlrs for discontinued operations, and a a gain of
218,000 dlrs and 2,393,000 dlrs, respecitvely, for
extraordinary item.
    1985 4th qtr and year oper net excludes a loss of 77,000
dlrs and about 54,000 dlrs, respectively, for discontinued
operations and a loss of 285,000 dlrs and a gain of 2,757,000
dlrs, respectively, for extraordinary item.


.I 17756
.C
ship;wheat;grain;
.W
HONDURAS SEEKING VESSELS FOR BULK WHEAT SHIPMENT.
    WASHINGTON, March 31 - Honduras will tender April 2 for
U.S. and non-U.S. flag vessels to import 19,369 tonnes of wheat
in bulk, an agent for the country said.
    The agent said Honduras is seeking vessels to deliver 
7,369 tonnes during a period that includes laydays of April
15-30, and 12,000 tonnes with laydays of May 15-30.
    Offers are due no later than 1200 hrs EST, April 2, and
will remain valid through the close of business the following
day, the agent said.


.I 17758
.C
earn
.W
OTF EQUITIES INC <OTFE> 4TH QTR NET.
    DETROIT, March 31 -
    Shr profit 28 cts vs loss 32 cts
    Net profit 1,190,000 vs loss 686,000
    Revs 40.8 mln vs 2.2 mln
    Year
    Shr profit 20 cts vs loss 49 cts
    Net profit 2,021,000 vs loss 1,162,000
    Revs 103 mln vs 9.5 mln
    Avg shrs 4,206,371 vs 2,124,967
   
REUTER

.I 17759
.C
earn
.W
******DOME PETROLEUM LTD YEAR OPER SHR LOSS 6.94 DLRS VS LOSS TWO CTS.
Blah blah blah.

.I 17761
.C
gas;crude;
.W
******API SAYS DISTILLATE STOCKS OFF 2.52 MLN BBLS, GASOLINE OFF 260,000, CRUDE OFF 4.23 MLN.
Blah blah blah.

.I 17762
.C
earn
.W
SALEM CORP <SBS> 4TH QTR LOSS.
    MIAMI, March 31 -
    Shr loss 1.82 dlrs vs loss 16 cts
    Net loss 2,285,000 vs loss 264,000
    Revs 23.0 mln vs 14.6 mln
    Year
    Shr loss 1.59 dlrs vs profit seven cts
    Net loss 2,467,000 vs profit 112,000
    Revs 77.3 mln vs 75.8 mln
    NOTE: Includes loss of 1.1 mln dlrs or 70 cts/shr from
asset writedowns and cost reductions.


.I 17763
.C
earn
.W
******CONSUMERS POWER SEES ONE-TIME 1ST QTR LOSS OF SEVEN CTS/SHR FROM SUIT.
Blah blah blah.

.I 17764
.C
earn
.W
******DOME PETROLEUM TAKES 1986 WRITEDOWNS TOTALLING 2.08 BILLION DLRS.
Blah blah blah.

.I 17767
.C
earn
.W
DOME PETROLEUM LTD <DMP> YEAR LOSS.
    CALGARY, Alberta, March 31 -
    Shr loss 6.94 dlrs vs loss two cts
    Net loss 2.20 billion vs profit 7.0 mln
    Revs 1.55 billion vs 2.44 billion
    Note: 1986 shr and net include writedowns totalling 2.08
billion dlrs before a reduction in deferred income taxes of 571
mln dlrs. Net also includes 214 mln dlrs in accumulated foreign
exchange losses
    Canadian funds
    Note continued: shr after preferred dividends


.I 17768
.C
iron-steel
.W
U.S. STEELMAKERS, UNION SEEK RENEWED IMPORT CURB.
    WASHINGTON, March 31 - The U.S. specialty steel industry
and its union said they will seek a three-year extension of
President Reagan's import restraint program to give the
industry more time to restore competitiveness.
    They said they will tell the U.S. International Trade
Commission (ITC) Thursday that "termination will have disastrous
consequences for American companies and workers."
    The current four-year voluntary program reached with
foreign exporters ends this summer and the ITC must advise
President Reagan on the economic effect of its termination.
    The Specialty Steel Industry of the United States and the
United Steelworkers Union said in statement that imported steel
was still flooding the domestic market and continued curbs were
needed to restore the industry's health.
    Reagan is to decide by July 19 whether to renew the
restraint program.


.I 17769
.C
acq
.W
HOLDER COMMUNICATIONS <HOLD> TO BUY FIVE FIRMS.
    TAMPA, Fla., March 31 - Holder Communications Corp said it
agreed to buy five privately held companies with combined 1987
revenues expected to be about 25 mln dlrs.
    Holder plans to issue 32 mln common shares to buy the
Nashville-based companies, all of which are owned by Jack
Norman and Joe Shaw, their families and employees.
    The companies include radio stations WKXC-AM and WWKZ-FM,
which operate in the New Albany/Tupelo, Miss., market, and
General Masonry Inc, a contractor in the Southeast.
    The acquisitions are subject to approval by Holder
shareholders and the Federal Communications Commission.


.I 17770
.C
earn
.W
CHELSEA <CHD> SEES LOWER 2ND QTR NET.
    BOSTON, March 31 - Chelsea Industries Inc said earnings for
its fiscal second quarter ended March 30 will be "sharply
lower" than the 1,414,000 dlrs or 55 cts a share it earned for
the same quarter last year.
    It also said it lowered its earnings forecasts for the
remainder of the fiscal year. In fiscal 1986, the company
earned 7,206,000 dlrs or 2.78 dlrs a share.
    The company cited intensely competitive market conditions
in its polyethelyne trash liner business and startup costs
related to its acquisition of Artisan Plastic for the reduced
earnings outlook.
   


.I 17773
.C
earn
.W
DOME PETE<DMP> TAKES 2.08 BILLION DLR WRITEDOWN.
    CALGARY, Alberta, March 31 - Dome Petroleum Ltd, earlier
reporting a 2.20 billion dlr 1986 loss compared to year-earlier
profit of 7.0 mln dlrs, said the loss was mainly due to write
downs totalling 2.084 billion dlrs before a reduction in
deferred income taxes of 571 mln dlrs.
    The loss also includes 214 mln dlrs in accumulated foreign
exchange losses, the company said.
    "The dramatic drop in energy prices in early 1986 reverses
much of the progress the company has made in the two previous
years," Dome chairman J. Howard Macdonald said in a statement.
    "But even a net loss of this magnitude has very little
bearing on the day-to-day operations of Dome," chairman
Macdonald said.
    "It merely reflects the realistic carrying value of the
company's assets in today's economic environment, and the
absolute need for reaching a timely agreement with our lenders
on a debt restructuring plan to assure the company's continued
existence," he added.
    Dome is now trying to reach agreement on a complex plan for
restructuring debt of more than 6.10 billion dlrs.
    Dome said it charged the 214 mln dlrs in accumulated
foreign exchange losses to current expenses because of the
uncertainty arising from its proposed restructuring plan.
    Normally the expenses would be amortized over the remaining
period of the loans to which they apply, it said.
    Dome also said the write downs included a fourth quarter
reduction in the value of its oil and gas properties of 1.20
billion dlrs, before a reduction in deferred income taxes of
305 mln dlrs. The fourth quarter writedown was in addition to a
charge of 880 mln dlrs on certain other assets, taken mainly in
the third quarter.
    Dome said the 1.20 billion dlr fourth quarter charge
resulted from a year-end accounting change made under new full
cost accounting guidelines by the Canadian Institute of
Chartered Accountants.
    The company said it previously determined a write down of
conventional oil and gas properties was not required at
September 30, under the previous method of calculating the
limitation of oil and gas values.
    Dome said the most significant accounting change under the
new guidelines is using current oil and gas prices in
calculations instead of escalating price forecasts.
    Terms of Dome's proposed debt restructuring plan preclude
the company from making an accurate estimate of future
financing costs, which are used in the new accounting
calculations, it said.
    As a result, Dome adopted current prices and costs and a 10
pct discount factor in the calculations, which substantially
conform with accounting rules prescribed by the U.S. Securities
and Exchange Commission, the company said.
    Dome said operating income from its crude oil and natural
gas segments fell by 2.50 billion dlrs to a 1986 loss of 1.71
billion dlrs from prior year earnings of 737.0 mln dlrs.
    Dome said the steep drop in crude oil and natural gas
operating income was due to write downs totalling 1.93 billion
dlrs and lower energy prices that sharply reduced revenue.
    Reduced production of natural gas and lower utilization of
Dome's offshore drilling fleet in the Beaufort Sea also
contributed to the decline, it said.
    Earnings from its natural gas liquids business fell by 79
pct to 42.0 mln dlrs from 199 mln dlrs in 1985.
    Cash from operations dropped to 5.0 mln dlrs from year-ago
542.0 mln dlrs and unrestricted cash balance declined to 202.0
mln dlrs from 466.0 mln dlrs.
    Dome said 1986 crude oil production in 1986 was maintained
at prior year's levels through new drilling activity and
improvements in productivity.
    Natural gas production fell by nine pct as a result of
lower domestic and export sales, it said.
    Oil and field natural gas liquids production totalled
86,000 barrels a day, compared to 87,000 bpd in the prior year.
    Natural gas production fell to 536.0 mln cubic feet a day
from 591.0 mcf a day.


.I 17775
.C
earn
.W
ORION CAPITAL CORP <OC> 4TH QTR LOSS.
    NEW YORK, March 31 - 
    Shr loss 9.42 dlrs vs loss 3.85 dlrs
    Net loss 55.5 mln vs loss 21.4 mln
    Revs 114.9 mln vs 120.0 mln
    Avg shrs 6,460,000 vs 5,719,000
    Year
    Shr loss 6.80 dlrs vs loss 4.77 dlrs
    Net loss 36.0 mln vs loss 26.2 mln
    Revs 478.9 mln vs 437.9 mln
    Avg shrs 6,016,000 vs 5,713,000
    Note: Net includes realized capital gains of 2,610,000 vs
2,442,000 for qtr and 18.1 mln vs 13.6 mln for year.
    1986 net also includes gain on termination of pension plan
of 2,614,000 for qtr and year, and tax loss of 3,605,000 for
qtr. Includes pretax gain from sale of common stock in Guaranty
National Corp of 5,722,000 for year.
    Revised estimated calculation of workers compensation
earned premiums decreased 1986 earned premiums by 10 mln.
    Year-ago results restated to reflect deconsolidation of
Guaranty National.


.I 17776
.C
earn
.W
AVON PRODUCTS <AVP> SEES HIGHER 1987 EARNINGS.
    NEW YORK, March 31 - Avon Products Inc, the diversifed
conglomerate that had a strong turn around in 1986, said it
expects sales and earnings to climb higher this year.
    In its annual report, the company also said it expects to
maintain its current annual two dlr dividend on the basis of
continued upward earnings.
    In 1986, Avon's operational earnings rose 24 pct to 158.7
mln dlrs from 128.2 mln dlrs a year earlier, and sales rose 17
pct to 2.88 billion dlrs. It said the 2.23 dlrs a share earned
last year was the highest in five years, but still well below
the company's all-time high of 4.06 dlrs a share in 1979.


.I 17778
.C
interest
.W
******CHASE MANHATTAN RAISES PRIME RATE TO 7-3/4 PCT FROM 7-1/2, EFFECTIVE TODAY.
Blah blah blah.

.I 17779
.C
earn
.W
PACIFIC GAS <PCG> ACCOUNTING CHANGE TO CUT NET.
    SAN FRANCISCO, March 31 - Pacific Gas and Electric Co said
it expects to record a 470 mln dlr, or 1.25 dlr per share,
reduction in 1987 earnings because of the company's decision to
change the method used to record Diablo Canyon Nuclear Power
Plant revenues.
    The accounting change will not affect the company's cash
position and the company intends to continue paying its
dividend at the annual rate of 1.92 dlrs per share.
    Last year Pacific Gas reported earnings of 925 mln dlrs, or
2.60 dlrs per share.
    Pacific Gas said the accounting change was prompted by
delays in the receipt of a California Public Utilities
Commission decision on the company's 1984 application for rate
relief to recover the 5.8 billion dlr cost of constructing
units one and two of the Diablo Canyon Nuclear Power Project.
    It said the commission is currently allowing the company to
recover 40 pct of the cost of owning and operating the plants.
    As a result, 63 mln dlrs has been accumulating each month
as deferred non-cash account receivable, which has been
included in current income.
    But the accounting change, effective January 1, will
reflect only cash received through interim rates approved by
the commission, Pacific Gas and Electric said.
    It also said the commission is now awaiting its Public
Staff Division's report which will recommend how much of the
5.8 billion dlr investment Pacific Gas should be allowed to
recover in rates.
    The company further stated that it is confident it will
receive an objective review of the facts.
    It also said it intends to seek additional interim rates.
    Pacific Gas began construction of the two nuclear power
units in 1969. After a number of construction delays, unit one
went into operation in May 1985 and unit two went on line in
March last year.


.I 17783
.C
earn
.W
GIANT FOOD INC <GFS.A> 4TH QTR FEB 28 NET.
    WASHINGTON, March 31 - 
    Shr 50 cts vs 66 cts
    Net 15.0 mln vs 20.0 mln
    Revs 861.2 mln vs 725.9 mln
    Year
    Shr 1.55 dlrs vsd 1.90 dlrs
    Net 46.5 mln vs 57.0 mln
    Revs 2.53 billion vs 2.25 billion
    Note: 1986 had 53 weeks vs 52 weeks in 1985. 4th qtr 1986
had 17 weeks vs 16 weeks in 1985.


.I 17784
.C
acq
.W
INNOVEX <INVX> COMPLETES PURCHASE OF LUCHT.
    MINNEAPOLIS, March 31 - Innovex  Inc said it has completed
the purchase of substantially of the interest in Lucht
Engineering Inc that it did not already own.
    Prior to this move Innovex owned 79 pct of Lucht, the
company said.
    Innovex said it bought the shares by exchanging 293,101
shares of unregistered Innovex common stock. Innovex president,
Thomas Haley, said the exchange is non-dilutive and will cause
a slight increase in Innovex's fully diluted earnings per share
during the last half of fiscal 1987.
    Lucht will continue to function as a unit of Innovex,
Innovex said.


.I 17785
.C
crude
.W
OIL PRICES SAID NOW BASED ON FUTURES PRICE.
     SAN ANTONIO, TEXAS, March 31 - Energy futures now set the
standard for oil pricing, said Arnold Safer, president of The
Energy Futures Group Inc, a consulting firm.
     "Petroleum futures trading at the New York Mercantile
Exchange literally set spot market prices in the U.S.," he
said, adding that some oil products sellers now offer contracts
based on a daily average of NYMEX prices.
     He also said that petroleum futures are a major market for
oil companies as well as for commodity traders. His remarks
were made at the National Petroleum Refiners Association.


.I 17786
.C
earn
.W
MCO RESOURCES INC <MCR> 4TH QTR LOSS.
    HOUSTON, March 31 - 
    Shr loss 1.37 dlrs vs 1.59 dlrs
    Net loss 38.6 mln vs 42.5 mln
    Revs 31.4 mln vs 59.4 mln
    Note: 1986 net includes pretax writedown of 23 mln on oil
and gas properties and a 30.3 mln non-cash provision for
impairment of geothermal property.


.I 17787
.C
earn
.W
LINEAR FILMS <LNER> SEES LOWER FOURTH QTR NET.
    TULSA, March 31 - Linear Films Inc said it sees lower
earnings in the fourth quarter ending March 31 compared with a
year ago due to lower profit margins on stretch film from price
increases of polyethelene resin, a key raw material.
    In last year's fourth quarter it earned 1,235,000 dlrs or
19 cts a share, a spokesman said.
    The company said it is raising its stretch film prices by
six pct as of April 15 to reflect the higher costs of
polyethelene resin. It also said sale volume of stretch film in
the fourth quarter was lower than anticipated, although it has
returned to normal in recent weeks.


.I 17788
.C
earn
.W
AUDITORS QUALIFY MCO RESOURCES <MCR> REPORT.
    HOUSTON, March 31 - MCO Resources Inc said its independent
auditors have qualified their opinion on the company financial
statements for 1986, in which it posted a net loss of 38.6 mln
dlrs or 1.37 dlrs a share on revenues of 31.4 mln.
    MCO said the qualfied opinion related to its realization of
the carrying amount of its geothermal property and its ability
to continue as an ongoing concern, which is dependent upon the
restructuring of the company's bank debt and other obligations,
resolution of the uncertainties surrounding its geothermal
operations and the success of future operations.
    The company said its capital spending for 1987 has been
virtually eliminated and that an additional staff reduction of
about 20 pct is being implemented today.


.I 17789
.C
earn
.W
INTERNATIONAL LEASE FINANCE <ILFC> 1ST QTR NET.
    BEVERLY HILLS, Calif., March 31 -
    Shr 22 cts vs 13 cts
    Net 7,121,000 vs 4,481,000
    Revs 37.4 mln vs 22.8 mln
    Avg shrs primary 30,067,000 vs 29,735,000


.I 17790
.C
earn
.W
ARCO <ARC> SAYS NET TO COVER DIVIDEND PAYOUT.
    LOS ANGELES, March 31 - Atlantic Richfield Oil Co said it
expects first quarter net income to cover its dividend
requirements in the quarter.
    The company paid a quarterly dividend of one dlr a share
earlier this month.


.I 17791
.C
grain;corn;
.W
EGYPT TENDERS THURSDAY FOR OPTIONAL ORIGIN CORN.
    KANSAS CITY, March 31 - Egypt will tender Thursday for
200,000 tonnes of optional origin corn, U.S. number two or
equivalent, 14.5 pct moisture, for late April shipment, private
export sources said.
    Shipment will be from the Gulf or Great Lakes if U.S.
origin, they said.


.I 17792
.C
earn
.W
SERVOTRONICS <SVT> SETS 10 PCT STOCK DIVIDEND.
    BUFFALO, N.Y., March 31 - Servotronics Inc said it declared
a 10 pct stock dividend, payable May 15 to shareholders of
record April 21.
    The company last declared a stock dividend, also 10 pct, in
March 1986.


.I 17793
.C
crude
.W
******STANDARD OIL RAISES ALASKA NORTH SLOPE BY 1.50 DLRS, effective APRIL ONE.
Blah blah blah.

.I 17795
.C
earn
.W
SERVOTRONICS INC <SVT> YEAR NET.
    BUFFALO, N.Y., March 31 - 
    Oper shr 50.4 cts vs 48.7 cts
    Oper net 688,000 vs 665,000
    Revs 12.3 mln vs 10.7 mln
    Note: Oper excludes tax credits of 559,000 vs 537,000


.I 17796
.C
money-fx
.W
CURRENCY FUTURES CLIMB LIKELY TO BE CHECKED.
    By Leslie Adler, Reuters
    CHICAGO, March 31 - The surge in currency futures since
Friday on the heels of the Reagan administration's proposed
tariffs on Japanese imports is likely to be curtailed in the
coming week, financial analysts said.
    "The market is taking a breather now, and I would expect it
to last a little longer," said Craig Sloane, a currency analyst
with Smith Barney, Harris, Upham and Co.
    Profit-taking, which robbed the currency futures of some
momentum today, is likely to continue, he said.
    Central banks are likely to play a role in halting the
advance in currencies through intervention, the analysts said,
even though the dollar fell to a 40-year low against the
Japanese yen on Monday despite Bank of Japan intervention.
    Treasury Secretary James Baker's comments that the G-6
nations remain committed to the Paris accord, coupled with his
refusal to give any targets for exchange rates, provided a note
of stability to the market Tuesday, the analysts said.
    Furthermore, Merrill Lynch Economics analyst David Horner
said G-6 central banks haven't yet shown the full force of
their commitment to the Paris accord.
    "I'm among those who believe the G-6 have a plan behind the
scenes," Horner said.
    Horner said more forceful central bank intervention will
firm the dollar and cap the rise in currency futures.
    "Coordinated, punishing intervention" by the central banks
-- in contrast to the recent rolling intervention which has
only smoothed out the market -- is in the offing, according to
Horner.
    "I think we're near the top of the range in the Europeans
(currencies)," he said.
     On the other hand, the upside target for the yen, which
set a new contract high today at 0.006916 in the June contract,
is at 0.007050, Horner said.
    Still, other analysts believe currency futures have yet to
peak.
    "The basic trend in the currencies is higher," said Anne
Parker Mills, currency analyst with Shearson Lehman Brothers
Inc. "The market wants to take the dollar lower."
    Uncertainty over central bank action and nervousness over a
G-5 meeting next week in advance of a meeting of the
International Monetary Fund could make for choppy price
activity the remainder of the week, Mills said.
    In addition, although the market shrugged off relatively
healthy gains in February U.S. leading economic indicators and
factory orders Tuesday, economic data could play a larger role
in coming sessions, the analysts said.
    Friday's employment statistics in particular will be
closely watched, Sloane said, adding that a forecast rise of
250,000 in non-farm payroll jobs should underpin the dollar.


.I 17798
.C
earn
.W
<POCO PETROLEUMS LTD> 1ST QTR JAN 31 NET.
    CALGARY, Alberta, March 31 -
    Shr eight cts vs 30 cts
    Net 1,100,000 vs 3,900,000
    Revs 14.9 mln vs 20.7 mln


.I 17800
.C
acq
.W
LILLY <LLY> CUTS LIPOSOME CO <LIPO> STAKE.
    WASHINGTON, March 31 - Eli Lilly and Co told the Securities
and Exchange Commission it cut its stake in Liposome Co Inc to
500,000 shares, or 4.0 pct of the total outstanding common
stock, from 900,000 shares or 7.3 pct.
    Lilly said it sold 400,000 Liposome common shares on March
17 at eight dlrs each.
    As long as Lilly's stake in Liposome is below five pct, it
is not required to report any further dealings it has in the
company's stock.


.I 17801
.C
oilseed;grain;corn;soybean;
.W
GRAIN REPORTS IMPROVE U.S. FARM OUTLOOK-ANALYSTS.
    CHICAGO, March 31 - The U.S. grain planting intentions and
stocks reports bear optimistic news for U.S agriculture, a
grain analyst on a Chicago Board of Trade panel said.
    The decline in intended soybean acreage and lower stocks
are "the first report we've had for a long time that shows any
optimism for anybody," said John "Bud" Frazier, grain analyst
and executive vice president for Balfour MacLaine, Inc.
    "I'm really excited about it," Frazier said.
    The U.S. Department of Agriculture said farmers intend to
plant 67.6 mln acres of corn, down from 76.7 mln planted last
year, and 56.8 mln acres of soybeans, down from 61.5 mln.
    The report showed March 1 stocks of 1.4 billion bushels of
soybeans, 8.3 billion bushels of corn, and 2.3 billion bushels
of wheat, all below trade guesses.
    Frazier was joined by Susan Hackmann, senior grain analyst
with AgriAnalysis, and Mark Meyer, a grain analyst with
Shearson Lehman Brothers, Inc., on a Chicago Board of Trade
panel to discuss the reports.
    Frazier said the stocks reports in particular were friendly
for the market, and soybean prices would jump three to five
cents a bushel "if the bell rang right now."
    "We're getting our disappearance up. We have less (corn and
soybeans) than we thought we had," he said, noting that hog and
poultry production is up.
    "We're seeing low prices generate some interest in demand,"
said Meyer, adding that feed use was up 13 pct last quarter and
15 pct in the preceding quarter.
    However, Hackmann said production could continue to exceed
consumption.
    She noted that most of the reductions in soybean acres came
in southeastern states, where yields are usually low.
    "We have the potential for record breaking soybean yields
this year, (which) will temper the enthusiasm on tomorrow's
opening," she said.
    Hackmann said record corn yields also are possible, and the
crop could reach 7.1 billion bushels, which would be down from
last year's 8.25 billion bushels.
    "We'll need very good disappearance next year to reduce
stocks," she said. The USDA estimated disappearance last year
at 6.7 billion bushels.
    Hackmann said the stocks report was positive for the long
term, "But we still have a long way to go to bring stocks down
to where we could start rebuilding prices."
    Frazier also cautioned that the soybean acreage report
could prompt farmers to change their plans and plant more
soybeans.
    The panelists agreed that the reports should discourage
talk of revising the 1985 farm bill.
    "There seems to be no desire ... to change the farm law
we're working under today, and this report should reinforce
that," Frazier said.
    "We are seeing the program beginning to work," said Meyer.


.I 17805
.C
acq
.W
ACCELERATION <ACLE> CUTS STAKE IN UNITED COASTS.
    DUBLIN, Ohio, March 31 - Acceleration Corp said it sold a
24.9 pct stake in the common stock of <United Coasts Corp> to
the <Sheet Metal Workers' National Pension Fund>.
    The company said it agreed to sell the fund an additional
5.1 pct of Hartford, Conn.-based United when the fund receives
approval from the director of insurance of the state of
Arizona.
   The company said today's sale reduced its holdings in United
to 25 pct. The second sale, when completed, will lower its
stake to 19.9 pct, Acceleration said.
    The company said the proceeds from both sales will be
roughly equal to the 3,330,000 dlrs it originally invested in
United Coasts in late 1985 even though it will retain a 19.9
pct stake.
    Acceleration said it plans to include gains from the stock
sales in its results for the first and second quarters of 1987.


.I 17806
.C
acq
.W
OPPENHEIMER SELLS SIX PCT CYCLOPS <CYL> STAKE.
    WASHINGTON, March 30 - Oppenheimer, the brokerage and
investment subsidiary of Oppenheimer Group Inc, told the
Securities and Exchange Commission it sold its entire 6.0 pct,
stake of Cyclops Corp.
    Oppenheimer said it sold the 243,400-share stake on March
27 at 95.00 dlrs a share.
    It said it initially bought the stock in connection with
risk arbitrage and other investment activities in the ordinary
course of its business.


.I 17808
.C
interest
.W
ANALYSTS SEE SLOW MOVE TO HIGHER U.S. PRIME RATE.
    By Martin Cherrin, Reuters
    NEW YORK, March 31 - Quarter-point prime rate increases to
7-3/4 pct by Citibank and Chase Manhattan Bank today will be
followed by other banks only after they see clearer signs of
the Federal Reserve's policy intentions, economists said.
    "Based on the spread between banks' cost of funds and the
prime rate, it probably makes sense for others to follow, but
no rush is likely," said Paul McCulley of E.F. Hutton and Co.
    Citibank's surprise base rate increase, quickly followed by
Chase, sent U.S. bond prices lower and the dollar higher.
    McCulley said that once the spread between three-month
certificates of deposit and the prime rate narrows to less than
1-1/2 percentage points, there is a strong chance of a prime
rate increase. It has been under 1-1/4 points recently.
    However, banks are likely to hold rate increases until they
see what the Fed intends to do about interest rates in the near
term, analysts said. They noted that banks historically like to
follow Fed rate movements, rather than lead them. For example,
the last prime rate increase occurred in June 1984 when banks
lifted the rate to 13 pct from 12-1/2 pct after a Fed discount
rate increase in April of that year.
    Major banks had been posting a 7-1/2 pct prime rate since
last August 26/27, when they lowered the rate from eight pct
shortly after the Fed's half-point discount rate cut to the
current 5-1/2 pct level on August 20.
    "The banks will not rush to raise their prime rates. There
should be a split prime for a while with some posting a 7-1/2
pct rate and others 7-3/4 pct," said David Jones of Aubrey G.
Lanston and Co.
    Jones said the Federal Open Market Committee at today's
meeting voted no change in Fed policy. But he said the Fed may
well foster higher interest rates soon.
    Jones said that, while the FOMC probably voted no policy
change today, it may have decided to apply slight upward rate
pressure later if the dollar weakens, inflation pressures heat
up or the economy shows sign of strong recovery.
    "The Fed clearly indicated that they did not intend to
tighten policy when they did today's coupon pass," said Joseph
Liro of S.G. Warburg and Co.
    In a move that came a day earlier than most expected, the
Fed today supplied permanent reserves to the banking system by
offering to buy all maturities of Treasury notes and bonds for
its own account. This seasonal reserve add is called a "pass."
    "The Fed demonstrated that there has been no policy
change," said Elizabeth Reiners, economist at Dean Witter
Reynolds Inc. 
    She said the spread between banks' cost of funds and the
prime rate is now around 137 basis points compared with a 153
basis point average in 1986. Reiners said the spread is not
really narrow enough to present a clear need for a prime rate
increase.
    The Dean Witter economist said that today's prime rate rise
"may have been less a response to interest rates than an
attempt to enhance the (balance sheet) bottom line."
    Reiners said that, given recent problems with loans to
developing countries, large money center banks with heavy
exposures might be the first to match the higher prime rate in
an effort to get more profitable spreads on other loans.
    The Federal funds rate at which banks lend overnight money
to one another could help determine how many banks match the
higher prime rate and also how quickly they move.
    In raising their prime rates, banks cited a higher cost of
funds. In the three business days through Monday, the Federal
funds rate at which banks lend to one another averaged nearly
6-1/4 pct. But quarter end pressures helped push up funds.  
    The Fed funds rate was extremely volatile today, reflecting
demand pressure associated with the end of the quarter and the
close of the Japanese fiscal year. Funds traded between five
and 6-3/4 pct.
    Once the special distortions end, analysts said the funds
rate probably will return to its recent trading level in the
6-1/8 pct area. They said that, if it stabilizes near there,
banks may not quickly boost their prime rates.
    But a consistently higher funds rates would suggest to many
that the Fed was fostering somewhat higher interest rates to
help the dollar. Then banks would lift prime rates quickly.


.I 17810
.C
acq
.W
TISCH BROTHERS LOWER TOSCO <TOS> STAKE.
    WASHINGTON, March 31 - An investment partnership led by
four sons of Loews Corp <LTR> Chairman Lawrence Tisch said it
cut its Tosco Corp stake to the equivalent of 1,499,985 shares,
or 4.95 pct of the total, from 1,666,650 shares, or 5.5 pct.
    In a filing with the Securities and Exchange Commission,
the partnership, FLF Associates, said it sold 10,000 shares of
Serier E convertible preferred stock on March 26 for 34.125
dlrs each and 5,000 shares of preferred stock on March 27 at
35.25 dlrs each. The sales leave the Tisch brothers with
135,000 shares of preferred stock which can be converted into
1,499,985 shares of common stock.


.I 17812
.C
earn
.W
NATURE'S BOUNTY INC <NBTY> YEAR LOSS.
    BOHEMIA, N.Y., March 31 - 
    Shr loss 10 cts vs loss 38 cts
    Net loss 393,241 vs loss 1,384,334
    Revs 43.6 mln vs 40.3 mln


.I 17813
.C
acq
.W
COMINCO <CLT> SELLS STAKE IN CANADA METAL.
    VANCOUVER, British Columbia, March 31 - Cominco Ltd said it
sold its 50 pct stake in Canada Metal Co Ltd to Canada Metal
senior management for an undisclosed sum.
    Cominco said the sale was part of its previously announced
policy of divesting non-core businesses.
    Canada Metal is a Toronto-based producer of lead alloys and
engineered lead products.
    Canada Metal production figures were not immediately
available.


.I 17814
.C
earn
.W
AUDITORS GIVE FIRST CITY <FBT> QUALIFIED OPINION.
    HOUSTON, March 31 - First City Bancorp of Texas, which lost
a record 402 mln dlrs in 1986, said in its annual report it
expected operating losses to continue "for the foreseeable
future" as it continues to search for additional capital or a
merger partner.
    The Houston-based bank's 1986 financial statements received
a qualified opinion from its auditors, Arthur Andersen and Co.
The auditors said their opinion was subject to First City
eventually obtaining additional capital.
    "The company believes that in order to address its
long-term needs and return to a satisfactory level of
operations, it will ultimately need several hundred million
dollars of additional capital, or a combination with a more
strongly capitalized entity," First City said in a note to its
financial statements included in the annual report.
    "Management believes that sufficient resources should be
available to cover interim capital concerns while additional
capital is being sought," the bank said.
    To raise cash in the near-term, First City said it may sell
or mortgage non-strategic assets, recover excess contributions
to its pension plan and obtain special dividends from some of
its member banks.
    "The losses for 1987 are expected to be substantially less
than in 1986," First City chairman J.A. Elkins said in a letter
included in the annual report. "However, the ultimate return to
satisfactory operating conditions is dependent on the
successful resolution of the related problems of credit
quality, funding and the eventual need for substantial
additional capital."
    First City said it anticipated that certain covenants of a
credit agreement with unaffiliated banks requiring most of
First City's excess cash to be applied to debt repayments would
be modified by the end of the first quarter in order to avoid
default.
    The banks agreed to similar amendments to the covenants
last year and First City has reduced its borrowings from 120
mln dlrs at 1986 yearend to 68.5 mln dlrs in recent weeks.
    Although the parent company's capital adequacy ratios
exceeded regulatory minimum requirements at the end of 1986,
First City said its two largest subsidiaries did not. First
City National Bank of Houston had a primary capital ratio of
5.34 pct and First City Bank of Dallas had a 4.75 pct ratio.
    Hard-hit by the collapse in oil and Texas real estate
prices, First City's net loan chargeoffs totaled 366 mln dlrs
last year, up from 261 mln dlrs in 1985. The bank more than
doubled its loan loss provision to 497 mln dlrs at the end of
1986.
    First City said chargeoffs and paydowns reduced its total
energy loan portfolio by 32 pct during 1986, to 1.4 billion
dlrs at year-end, adding that future energy chargeoffs "should
be more modest." The amount represented 15 pct of First City's
total loans.
    In real estate, First City said its nonperforming assets
nearly doubled last year to 347 mln dlrs at year-end.
Chargeoffs of real estate loans rose to 32 mln dlrs, or nine
pct of total loan chargeoffs, and the bank said the amount
could go higher.
    "The company still faces uncertainties in the real estate
market and anticipates further deterioration in the pportfolio
so long as the regional recession persists," First City said.
"Because the carrying value of many of these loans is
collateral dependent, a further decline in the overall value of
the collateral base could cause an increase in the level of
real estate-related chargeoffs."


.I 17815
.C
money-fx
.W
U.S. FED EXPLORES COMMODITY BASKET INDEX.
    By Alver Carlson, Reuters
    WASHINGTON, MARCH 31 - The complex task of wielding control
over monetary policy in an increasingly fast-moving global
economy could be aided by tying policy to commodity prices, the
newest member of the Federal Reserve Board says.
    Commodity prices are already considered by the Fed in the
making of monetary policy. But they would be given a much
greater role under an idea being floated by Governor Robert
Heller, who joined the board last August.
    He conceeds that much more study of the idea is needed, but
argues that such an arrangement, particularly if it were
adopted by other major industrial countries, could reduce the
volatility of exchange rates.
    Moreover, it could help stabilize of the prices of
commodities themselves, slowing changes in inflation.
    His idea, which many conservative economists find
appealing, has some backing among board members appointed in
recent years by President Reagan.
    It would complement the present system of opening or
closing the monetary screws based on the pattern of inflation,
key indicators such as unemployment, and the rise or fall of
the money supply. Changes in the money supply can lead to
changes in interest rates and affect economic activity
directly.
    Discussed on and off for a long time, the commodity concept
is part of a growing search for a system that anchors monetary
policy and widely-fluxtuating currency prices to a more solid
base.
    "What is needed is an anchor or reference point that can
serve as a guide for both domestic and international monetary
purposes," says Heller.
    In the past, this anchor was gold but the United States
went off the gold standard because the global economy had
vastly outstripped gold supplies.
    A return to the gold standard is generally dismissed out of
hand by most policymakers on the grounds that the largest
producers of gold are the Soviet Union and South Africa.
    The so-called fixed rate system, scuttled in the early
1970s, is still considered unworkable in the present world.
    But the current system of floating currencies in which
currencies can fluxtuate widely, adding vast pressures to the
monetary system, is also being widely questioned.
    Some have suggested that the system might benefit from a
formal approach that mandates intervention by countries when
currencies wander above or below agreed to levels but there are
major problems with this also.
    For one thing, there is justifiable concern that countries
might be relunctant to intervene if they felt it might be
detrimental to their own domestic economy.
    Moreover, some question whether concerted intervention can
make much of an inpact if the overall market does not agree
with the fundamental judgement.
    The poorest countries have called for a monetary conference
to work out a new system that, not surprisingly, helps them
cope with their overpowering debt problems.
    Treasury Secretary James Baker, the Reagan administration's
chief economic architect, has preferred to use the so-called
Group of Five industrial countries or sometimes, Seven, as a
forum to work out cooperative agreements on currency and other
economic matters.
   He appears convinced that officials from West Germany,
France, Britain, Japan, Italy and Canada talking quietly behind
closed doors can reached reasoned decisions away from public
posturing.
   The Heller approach, while extremely complex, could have a
profound impact on the system, ideally stabalizing prices and
international exchange rates.
    As envisioned by Heller, a basket of say, 30 major
commodities ranging from wheat to oil, would be put together
and prices would be measured on a regular basis.
    "In times of rising commodity prices, monetary policy might
be tightened and in times of falling commodity prices, montary
policy might be eased," he says.
    He notes that commodity prices are traded daily in auction
markets, and a commodity price index can be calculated on a
virtually continuous basis.
    Moreover, most commodity prices are produced, consumed and
traded on a world-wide basis, so "that an index has a relevance
for the entire world," he says.
    In addition, commodity prices are at the beginning of the
production chain and serve as an imput into virtually all
production processes.
    "Focusing on commodity prices as an early and sensitive
indicator of current and perhaps also future prices pressures,
the monetary authorities may take such an index into account in
making their monetary policy decisions," he says.
    However, he says that any major change in a basic commodity
such as occurred in oil during the 1970s because of action by
the OPEC cartel, would have to be discounted in such a system.
    He says the worst thing that could happen is to allow
monetary policy to spread a freakish increase in one commodity
to the rest of the system and to other commodities.


.I 17816
.C
earn
.W
MICROBIOLOGICAL SCIENCES INC <MBLS>4TH QTR LOSS.
    DALLAS, March 31 - 
    Oper shr loss 10 cts vs profit nine cts
    Oper net loss 387,000 vs profit 313,000
    Revs 6,486,000 vs 5,613,000
    Year
    Oper shr loss two cts vs profit four cts
    Oper net loss 96,000 vs profit 120,000
    Revs 23.8 mln vs 21.3 mln
    Note: 1986 oper excludes extraordinary gains of 299,000 for
qtr and year.


.I 17817
.C
acq
.W
INVESTOR GROUP CUTS DBA SYSTEMS <DBAS> STAKE.
    WASHINGTON, March 31 - A group led by New York investors
David Bellet and Chester Siuda said it lowered its stake in DBA
Systems Inc to 100,000 shares, or 3.7 pct of the total
outstanding, from 170,000 shares, or 6.3 pct.
    In a filing with the Securities and Exchange Commission,
the group said it sold 70,000 DBA common shares between Feb 13
and March 23 at prices ranging from 18.25 to 20.00 dlrs a
share.
    So long as the group's stake in DBA is below five pct, it
is no longer required to report its further dealings in the
company's common stock.


.I 17818
.C
earn
.W
LOWELL INSTITUTION FOR SAVINGS <LIFS> QTLY DIV.
    LOWELL, Mass., March 31 - 
    Qtly div 7.5 cts vs 7.5 cts prior
    Pay May 19
    Record April 24


.I 17820
.C
earn
.W
EARTHWORM TRACTOR CO INC <WORM> YEAR LOSS.
    ARDSLEY, N.Y., March 31 - 
    Oper shr loss 11 cts vs profit two cts
    Oper net loss 1,058,585 vs profit 282,998
    Revs 24.4 mln vs 23.7 mln
    Note: 1986 oper includes accrued interest of 686,914 from
financing of capital goods transaction with Prudential Bache
Trade Corp.
    Year-ago oper excludes extraordinary gain of 121,000.
 


.I 17824
.C
acq
.W
******EMERY AIR FREIGHT CORP TO OFFER 40 DLRS/SHR FOR PUROLATOR COURIER CORP.
Blah blah blah.

.I 17825
.C
acq
.W
EMERY AIR <EAF> TO BID FOR PUROLATOR <PCC> .
    WILTON, Conn., March 31 - Emery Air Freight Corp said it
plans to begin tomorrow a 40 dlr a share tender offer for 83
pct of the outstanding common stock of Purolator Courier Corp.
    The company said the tender offer is the first step in a
plan to buy 100 pct of the Purolator shares.
    Following the tender offer, Emery said it would offer 40
dlrs of junior subordinated debentures for each remaining
Purolator share outstanding.
    On March one, Purolator agreed to a 35 dlr a share
leveraged buyout by eight Purolator executives and EF Hutton
LBO Inc, a unit of EF Hutton Group Inc.
    Emery said it had tried unsuccessfully to open merger
discussions with Purolator before the company accepted the
management-led buyout offer.
    In a letter to Purolator's chairman, Nicholas F. Brady,
Emery's chairman, John C. Emery, said the company would still
prefer to negotiate with Purolator.
    But he said the imminent expiration of the leveraged buyout
group's offer has forced the company to make an unsolicited
tender offer of its own.
    Emery said its offer is scheduled to expire at 2400 EST on
April 28, unless extended.
    The company said conditions of the offer include the
receipt of at least two-thirds of Purolator's shares
outstanding, on a fully diluted basis, and the repeal of its
share purchase rights plan.
    Emery said the offer is also subject to completion of the
previously announced sale of Purolator's Canadian operations.
    Emery said Chemical Bank, Bankers Trust, Morgan Guaranty
Trust Co and Salomon Bros had agreed to provide financing for
the tender offer.
    It said the junior subordinated debentures to be issued in
the subsequent merger will carry a 13 pct annual interest rate,
payable twice a year.
    For the first three years after the notes are issued,
interest will be paid, at Emery's option, in cash or in
additional notes, Emery said.
    It added that the notes will not be subject to redemption
for one year after they are issued.
    Emery said Purolator would operate as a wholly owned unit
of the company after the merger. It said it hoped Purolator's
management would continue with the company.
    "We believe that our two companies provide an excellent fit
with each other and that the combination will enable each of us
to better serve our existing customers and meet the challenges
of the future," Emery's chairman said in his letter.
    He said a merger would significantly enhance the financial
turnaround that Purolator's management had previously forecast.
    Officials at Purolator could not immediately be reached for
comment on the offer, which was released several hours after
the stock market had closed.
    Emery's stock closed up 1/2 at 12-5/8.
    Purolator closed at 34-7/8, off 5/8.


.I 17826
.C
dlr;money-fx;yen;
.W
******Bank of Japan buys dollars around 146.30 yen, dealers say.
Blah blah blah.

.I 17827
.C
money-supply
.W
AUSTRALIAN BROAD MONEY GROWTH 10.3 PCT IN FEBRUARY.
    SYDNEY, April 1 - Australian annual broad money growth rose
10.3 pct in February, unchanged from January, but down from the
corresponding February growth rate of 13.9 pct, the Reserve
Bank said.
    February broad money growth was steady at 0.7 pct from the
previous month and unchanged from February last year.
    Borrowings from the private sector by non-bank financial
intermediaries rose by 8.8 pct in the February year from
January's 9.5 pct rise, compared with a 13.6 pct increase in
the previous February year.
    In February, borrowings from the private sector by non-bank
financial intermediaries rose by 1.0 pct compared with
January's 0.2 pct increase and the previous February rise of
1.7 pct.
    At the end of February, broad money stood at 177.1 billion
dlrs up from January's 175.84 billion and compared with the
previous February level of 160.60 billion.
    The Reserve Bank last week reported a February M3 growth
rate of 11.2 pct from January's 10.7 pct rise and a previous
annual February increase of 14.0 pct.


.I 17829
.C
alum
.W
ALCAN AUSTRALIA LIFTS ALUMINIUM INGOT PRICE.
    SYDNEY, April 1 - Alcan Australia Ltd said it increased the
list price of 99.5 pct purity aluminium ingot to 2,050 dlrs a
tonne from 1,950 dlrs, effective immediately.


.I 17830
.C
grain
.W
ECONOMIC SPOTLIGHT - CHINA MUST PRESERVE FARMLAND.
    By Mark O'Neill, Reuters
    FENGBANG COUNTY, China, April 1 - "If we go on using up
farmland as we have done since 1980, there will be none left in
20 years to grow grain on."
    Xu Jinfeng, a middle-aged official in Fengbang village on
the edge of Shanghai, sums up the dilemma China faces as it
tries to feed its more than one billion people and at the same
time let them get richer by building factories and new homes.
    China has to feed one quarter of the world's population,
but only one seventh of its land is arable.
    Sharp increases in farm output since 1979 turned China into
a net grain exporter for the first time in 1985, and again in
1986.
    But the rapid industrialisation of the countryside which
has occurred at the same time, has gobbled up arable land for
factories and homes for peasants who can now afford them.
    Official figures show that China lost just under one pct of
its arable land to other uses in 1985 and a slightly smaller
amount last year. It gained 26 mln new mouths to feed during
the two years.
    "We lost very little land prior to 1980 when the
industrialisation began," official Xu said. "Since then, nearly
all the families in the county have built new homes and many
factories have gone up."
    "Last year we lost land to a new railway line," Xu said. But
land losses in future should fall because nearly all families
already have new houses, she added.
    The issue of land loss is a matter of major concern to the
Peking leadership, which announced earlier this month that
China will issue nationwide quotas for conversion of grain land
for the first time this year.
    "The present situation of abusing, occupying unlawfully,
wasting and destroying land and land resources is serious," said
an article in the official press explaining the new measures.
    "It has resulted in great losses of cultivated farmland," it
said. "China has a large population and its land resources are
badly deficient."
    An official of the Shanghai city government said county
authorities could approve conversion of only 0.3 hectares of
arable land to other uses, while anything more than that must
be approved by the city government.
   The Peking government faces another major obstacle in its
efforts to ensure China's people get enough grain to eat. The
prices the state pays to farmers for grain are too low, making
it more profitable for them to grow other crops.
    To offset this, the state offers farmers cheap fertiliser
and diesel oil and payment in advance for grain it contracts to
buy. The state then sells the grain at subsidised prices to
China's 200 mln city residents. Rural factories also subsidise
grain output, paying farmers bonuses to grow it.
    Some officials argue that the simplest solution to the
problem would be for the state to raise city grain prices.
    Chen Zuyuan, Communist Party secretary of a village in the
eastern province of Zhejiang, said the government listened too
much to the demands of "selfish city people" and could raise city
grain prices without any problem.
    But the government has ruled out a price rise. "Raising the
price of grain would directly conflict with the goal of social
stability," said a China Daily editorial this month.
    The Shanghai official said prices must be reformed over the
long term. "We must be very careful. We have a very large
population which is used to price stability and will object to
price rises," he said. "The problem is how to do it."
    The Shanghai official said a rise in grain prices might
also affect the prices of hundreds of food products made with
grain and consumed by city residents.
    In addition, the state faces the problem of inadequate
investment by farmers in land and in grain in particular.
    The official press has reported that farmers fear farm
policy may change and they are putting their new wealth into
building graves, memorial halls for ancestors and homes.
    Under reforms introduced in the late 1970s, farmers sign
contracts with the state requiring them to grow certain crops,
but they have considerable freedom in how to use their land.
    "As the expiration date of the 15-year contract is almost at
the halfway mark, farmers are beginning to worry about the
future," the China Daily said in an editorial last month.
    Their anxieties stem from the fact that they are allowed to
use the land but not own it. For most of the period of
Communist rule, the land was organised into collectives where
there was little room for individual initiative.
    "New measures are needed to reassure them of the consistency
of government policies and make them interested in long-term
investment," the newspaper said.


.I 17831
.C
grain;corn;cotton;
.W
CHINA OFFICIAL CONDEMNS GOVERNMENT GRAIN POLICY.
    PEKING, April 1 - The grain output of a major Chinese
grain-producing province is not increasing, because farmers
lack incentives, production costs are rising, storage
facilities are poor and there is not enough state investment in
grain, the province's vice-governor said.
    The China Daily quoted Yang Jike, vice-governor of Anhui,
as saying farmers could earn twice as much growing cotton as
they could growing grain, and three times as much growing cash
crops like flax. He said production costs had risen to 40 pct
of farmers' earnings, from 20 pct in 1982, and lower investment
had caused the area of irrigated land to fall.
    Yang said investment in agriculture fell in 1985 to 9.9 pct
of the province's total investment, from 26 pct in 1978.
    He said an estimated 1.5 billion yuan worth of grain was
hit by mildew or rot in state granaries every year, and a
further 1.5 mln tonnes was eaten annually by rats.
    He said government measures to deal with the problem dealt
with trifles, rather than the essentials. He called for more
investment in grain production, an immediate ban on illegal use
of or damage to farmland and a reversal of what he called the
tendency to rely on grain imports.
    The New China News Agency quoted Zhang Yan, a delegate to
the National People's Congress, attacking grain policy. He said
the government had cut agricultural investment to three to four
pct from 11 pct.
    "With the abundance of grain and cotton in the past few
years, some people got carried away, relaxing their attention
to grain and cotton production," he said.
    On Saturday, vice-premier Tian Jiyun said China aimed to be
self-sufficient in grain. Now it exports corn from the
northeast, but it imports wheat.
    "Grain consumption is rising every year. Even if we reach
the 1987 target of (405 mln tonnes), it cannot be considered
adequate," Tian said.


.I 17833
.C
trade
.W
TAIWAN'S SECOND QUARTER IMPORTS SEEN RISING.
    TAIPEI, April 1 - Taiwan's imports in the second quarter of
1987 are expected to rise to 7.75 billion U.S. Dlrs from 5.82
billion a year earlier and from 6.95 billion in the first
quarter of this year, the statistics department said.
    A department official attributed the increase to growing
domestic investment by the private and public sectors. It is
expected to rise to 4.68 billion U.S. Dlrs from 3.79 billion a
year earlier and 3.41 billion during the first quarter.
    Taiwan's exports in the April-June quarter are expected to
rise to 12.03 billion U.S. Dlrs from 9.63 billion a year
earlier and 11.28 billion in the first quarter.
    The official said Taiwan's trade surplus is expected to
climb to 4.28 billion U.S. Dlrs in the second quarter of 1987
from 3.81 billion a year earlier. It was 4.33 billion in the
first quarter of this year.
    Most of the surplus is expected to come from trade with the
U.S., Taiwan's largest trading partner and importer of nearly
50 pct of Taiwan's total exports, he said.
    He said he expected Taiwan's imports, including grains,
machinery and power plant equipment, from the U.S. To rise
sharply because of government efforts to balance trade with
Washington. He declined to give figures.


.I 17834
.C
dlr;money-fx;yen;
.W
******Bank of Japan intervenes buying dollars at around 147.30 yen - dealers.
Blah blah blah.

.I 17838
.C
earn
.W
MICKELBERRY CORP <MBC> SETS QTLY PAYOUT.
    NEW YORK, March 4 -
    Qtly div 1-1/2 cts vs 1-1/2 cts prior
    Pay March 31
    Record March 13


.I 17839
.C
money-fx;interest;
.W
SWAP DEALERS UNVEIL STANDARD CONTRACT.
    London, March 4 - The International Swap Dealers
Association has developed the first standard form contract for
use by arrangers of currency and interest rate swap
transactions, said Thomas Jasper, the Association's
co-chairman.
    The contract, unveiled at a press conference , is expected
to make the 300 billion dlr a year swap market more efficient,
he said. "The contracts wil accelerate the process and reduce
the expense of swap documentation," Japsper said.
    Privately, eurobond traders estimate that about 80 pct of
all new issues eventually become part of either an interest
rate or currency swap.
    An interest rate swap occurs when two issuers, usually
acting through a bank middleman, agree to accept each other's
interest payments on debt securities. Usually, the issuer of a
floating rate debt security swaps into fixed-rate debt and vice
versa. But the obligation for repayment of the debt remains
with the original borrower.
    Bank regulators have become concerned about the use of
swaps because the middleman, usually a bank, takes on some
portion of the risk but is not required to show it on the
balance sheet as a liability and may not have sufficient
capital to cushion it.
    Kenneth McCormick, a co-chairman of the ISDA and president
of Kleinwort Benson Cross Financing Inc, said the Bank of
England and the U.S. Federal Reserve Board were expected later
today to announce joint proposals for setting minimum capital
standards for counterparties in swaps.
    The standards are part of the recently announced
convergence agreement between the two countries in which
regulators have attempted to set similar capital requirements
for institutions.
    McCormick told reporters the ISDA was concerned that a
"level playing field" be maintained in the swaps market.
    He said if U.K. And U.S. Banks were required to hold more
primary capital against swap transactions than is the current
practice, the additional costs would have to be passed on to
issuers.
    The issuers might then choose to do business with
lower-cost banks which are not subject to U.S. Or U.K. Banking
rules.
    He said the ISDA had been working on a code of conduct for
swap dealers as part of its self-regulatory effort.
    That code should be completed within the next few weeks, he
said.


.I 17843
.C
acq
.W
METROPOLITAN FEDERAL <MFTN> TO MAKE ACQUISITION.
    NASHVILLE, Tenn., March 4 - Metropolitan Federal Savings
and Loan Association said it has signed a letter of intent to
acquire American Trust of Hendersonville, Tenn., for an
undisclosed amount of cash.
    American Trust had year-end assets of over 40 mln dlrs.


.I 17845
.C
interest
.W
GM'S <GM> PONTIAC HAS INTEREST RATE INCENTIVES.
    PONTIAC, Mich., March 4 - General Motors Corp said its
Pontiac Division has established an interest rate support
incentive program, effective immediately, as an alternative to
its current option bonus program.
    The company said qualified buyers of Pontiacs may now
select special finance rates of 3.9 pct on 24-month contracts,
7.9 pct on 36-month contracts, 8.9 pct on 48-mopnth contracts
or 9.9 pct on 60-month contracts.  The program is scheduled to
expire April 30.
    Under the option bonus program, which is also scheduled to
expire April 30, buyers receive cash bonuses on the purchase of
Pontiacs equipped with option group packages, with the amount
depending on the option level on each vehicle.
    The company said the special interst rate program applies
to ann new 1986 and 1987 Pontiacs sold from dealer stock and
delivered to customers during the program period.  A customer
may choose only one program, it said.


.I 17846
.C
earn
.W
<WESTAR MINING LTD> 4TH QTR LOSS.
    VANCOUVER, British Columbia, March 4 -
    Shr not given
    Oper loss 5,900,000 vs profit 9,300,000
    Revs 105.3 mln vs 131.2 mln
    Year
    Shr not given
    Oper loss 21.7 mln vs profit 34.7 mln
    Revs 370.7 mln vs 515.1 mln
    Note: 67 pct owned by <British Columbia Resources
Investment Corp>
    Note continued: 1986 qtr excludes extraordinary loss of 3.6
mln dlrs versus loss of 294.0 mln dlrs in prior year
    1986 year excludes extraordinary loss of 79.1 mln dlrs
versus loss 221.5 mln dlrs in prior year


.I 17847
.C
acq
.W
DOW CHEMICAL <DOW> TO SELL SOUTH AFRICAN UNIT.
    MIDLAND, Mich., March 4 - Dow Chemical Co said it has
agreed in principle to sell its industrial chemicals and
plastics business interests in South Africa and related assets
to a group of South African investors for undisclosed terms,
completing the sale of the company's South African assets
    Dow said it will continue to support its educational and
health programs for South African blacks.


.I 17851
.C
earn
.W
WILLIAMS COS <WMB> YEAR LOSS.
    TULSA, March 4 -
    Shr loss 6.97 dlrs vs profit 92 cts
    Net loss 240 mln vs profit 31.6 mln
    Revs 1.9 billion vs 2.5 billion
    NOTE: 1986 includes loss of 250 mln dlrs or 7.27 dlrs a
share from discontinued operations and writedowns of holdings
in Texasgulf Inc. 1985 restated.


.I 17852
.C
earn
.W
GEONEX SEES SALES HURT BY PRODUCTION SHIFT.
    ST. PETERSBURG, Fla., March 4 - Geonex Corp <GEOX> said
BellSouth Corp <BLS> unit Southern Bell Telephone and Telegraph
Co's decision to postpone the start up of new conversion
assignments at Geonex's Chicago Aerial Survey unit could
negatively affect its fiscal 1987 revenues.
    The company said it had expected higher revenues from the
records conversion work, but it now foresees revenues from
Southern Bell work at about eight mln dlrs, the same level as
last fiscal year.
    Geonex said Southern Bell will let CAS continue work in
progress and it expects to perform mechanized posting and
records conversion for Southern Bell through 1989.
    But, it added that the Southern Bell decision has forced it
to pursue opportunities with other telephone companies and
municipalities to replace the Southern Bell work.


.I 17853
.C
earn
.W
******NWA INC 4TH QTR SHR PROFIT 45 CTS VS LOSS NINE CTS.
Blah blah blah.

.I 17854
.C
sugar
.W
****** UK INTERVENTION BD SAYS EC SOLD 60,500 TONNES WHITE SUGAR AT REBATE 43.147 ECUS.
Blah blah blah.

.I 17856
.C
earn
.W
(CRIME CONTROL INC) 4TH QTR NET LOSS.
    INDIANAPOLIS, IND., March 4-
    Shr loss 2.03 dlrs vs loss 85 cts
    Net loss 10,742,113 vs loss 3,700,712
    Revs 8,027,065 vs 8,689,008
    Avg shrs 5.3 mln vs 4.4 mln
    Year
    Shr loss 2.45 dlrs vs loss 1.73 dlrs
    Net loss 11,607,104 vs loss 7,442,825
    Revs 32.6 mln vs 33.2 mln
    Avg shrs 4.7 mln vs 4.3 mln
    NOTE: 1986 net loss includes a fourth quarter charge of
10.5 mln dlrs from writeoffs of certain assets.
    1985 net loss includes a charge of about 2.3 mln dlrs from
settlement of class action lawsuit.


.I 17858
.C
sugar
.W
U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES.
    LONDON, March 4 - A total 60,500 tonnes of current series
white sugar received export rebates of a maximum 43.147
European Currency Units (Ecus) per 100 kilos at today's
European Community (EC) tender, the U.K. Intervention Board
said.
    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.
    Earlier today, London and Paris traders said they expected
the subsidy for the current season whites campaign for licences
to end-July to be between 43.00 and 43.45 Ecus per 100 kilos.
    They had also forecast today's total authorised sugar
tonnage export awards to be between 60,000 and 80,000 tonnes
versus 103,000 last week when the restitution was 43.699 Ecus.


.I 17862
.C
rubber
.W
JAPAN FIRM DEVELOPS ULTRA HEAT-RESISTING RUBBER.
    TOKYO, March 4 - Shin-Etsu Chemical Co Ltd said it had
developed an ultra thermal resistance rubber which can be used
at 250 centigrade continuously without losing its properties.
    Shin-Etsu put potential demand for the product at two
tonnes a month mainly for microwave ovens and as a sealant.
    But increasing use of the product in parts attached to car
engines will raise demand and the company will boost output to
10 tonnes by March 1988 from two now, he said.


.I 17863
.C
earn
.W
CASTLE AND COOKE INC <CKE> 4TH QTR LOSS.
    LOS ANGELES, March 4 -
    Shr loss 76 cts vs loss 21 cts
    Net loss 31.9 mln vs loss 3,288,000
    Revs 380.2 mln vs 311.5 mln
    Avg shrs 47.1 mln vs 41.2 mln
    Year
    Shr profit 56 cts vs profit 56 cts
    Net profit 43,925,000 vs profit 46,433,000
    Rev 1.74 billion vs 1.60 billion
    Avg shares 43,602,000 vs 41,014,000
    NOTE: Fourth quarter includes after tax loss from
discontinued Flexi-Van operations of 33.9 mln dlrs. Primary
earnings per share data calculated after deducting preferred
dividend requirements.


.I 17864
.C
earn
.W
VOICEMAIL INTERNATIONAL INC 4TH QTR LOSS.
    CUPERTINO, Calif., March 4 -
    Shr loss 21 cts vs loss 14 cts
    Net loss 838,069 vs loss 433,875
    Revs 1,080,068 vs 1,793,398
    Avg shrs 4,004,826 vs 3,172,537
    12 mths
    Shr loss 39 cts vs 11 cts
    Net loss 1,387,500 vs loss 334,463
    Revs 6,456,882 vs 5,605,680
    Avg shrs 3,542,217 vs 3,071,456


.I 17867
.C
earn
.W
MOLECULAR GENETICS INC <MOGN> 4TH QTR LOSS.
    MINNETONKA, Minn., March 4 -
    Oper shr loss 22 cts vs loss 13 cts
    Oper net loss 1,712,916 vs loss 769,539
    Revs 2,292,972 vs 2,157,895
    Avg shrs 7,961,602 vs 6,200,293
    Year
    Oper shr loss 53 cts vs loss 45 cts
    Oper net loss 3,562,151 vs 2,543,366
    Revs 9,117,311 vs 8,251,136
    Avg shrs 7,169,871 vs 6,186,51
    NOTE: Current year net both periods excludes charge 430,649
dlrs from cumulative effect of accounting change for patents.
    1986 net both periods includes charge of about 458,000 dlrs
from severance obligations.
    1986 year net includes charge 156,000 dlrs from writeoff of
seed commitments.


.I 17870
.C
earn
.W
MERRIMAC INDUSTRIES INC <MMAC> 4TH QTR NET.
    WEST CALDWELL, N.J., March 4 -
    Shr five cts vs 29 cts
    Net 92,641 vs 466,668
    Sales 4,448,011 vs 4,122,301
    Year
    Shr 34 cts vs 1.16 dlrs
    Net 553,310 vs 1,864,417
    Sales 16.3 mln vs 16.7 mln


.I 17874
.C
earn
.W
B.C. RESOURCES HAS AGREEMENT ON CREDIT FACILITY.
    VANCOUVER, British Columbia, March 4 - <British Columbia
Resources Investment Corp>, earlier reporting higher full year
operating losses, said it reached agreement in principle with
five lenders providing for a 360 mln dlr credit facility over a
four year term.
    The company said the credit facility is extendable under
certain circumstances, with annual principal payments of five
mln dlrs. The agreement is subject to certain lender approvals
and completion of formal documentation.
    It earlier reported 1986 losses before extraordinary items
rose to 26.4 mln dlrs from year-ago 7.2 mln dlrs.
    B.C. Resources also said dividends on its series 2
preferred shares and exchangeable preferred shares will remain
suspended.
    However, payment will be made on account of the quarterly
dividend on the exchangeable preferred shares by the company's
trustee from a deposit account, B.C. Resources said.
    Sufficient funds should be available to pay full amount of
the March 31, 1987 dividend to exchangeable preferred
shareholders, with payment expected in early April to
shareholders of record March 31, the company said.
    If future dividends are not declared after the April
exchangeable preferred quarterly payout, future payment will
depend on the amount of dividends received from Westcoast
Transmission Co <WTC>, B.C. Resources said.
    The company said its increased fourth quarter and full year
operating losses primarily resulted from lower oil prices and a
four month labor shutdown at its Balmer coal mine in British
Columbia.
    B.C. Resources also recorded a 99.9 mln dlr extraordinary
loss, which included losses on disposition of North Sea oil and
gas interests by 67 pct owned <Westar Mining Ltd>.
    B.C. Resources' 1986 extraordinary charge also included a
writedown of its investment in Westar Petroleum. Gains on the
sales of Westar Timber's Skeena and Celgar pulp mills and
Terrace sawmill partially offset the extraordinary loss, the
company said.
    The company said the asset sales have eliminated B.C.
Resources' long term financing commitment in the North Sea and
exposure to the fluctuating pulp market.
    It also said it cut long term debt in 1986 to 900 mln dlrs
from 1.3 billion dlrs at year-end 1985, and management changes
and staff cuts have significantly reduced costs.


.I 17875
.C
money-fx
.W
U.K. MONEY MARKET GIVEN 85 MLN STG LATE HELP.
    LONDON, March 4 - The Bank of England said it had provided
the money market with late assistance of around 85 mln stg.
    This brings the bank total help so far today to some 87 mln
stg and compares with its latest forecast of a 250 mln stg
shortage in the system today.


.I 17878
.C
earn
.W
CML GROUP INC <CMLI> 2ND QTR JAN 31 NET.
    ACTON, Mass., March 4 -
    Shr 72 cts vs 58 cts
    Net 4,791,000 vs 3,803,000
    Sales 83.0 mln vs 72.0 mln
    Avg shrs 6,668,309 vs 6,545,722
    1st half
    Shr 88 cts vs 70 cts
    Net 5,872,000 vs 4,614,000
    Sales 141.6 mln vs 121.8 mln
    Avg shrs 6,669,488 vs 6,525,051


.I 17879
.C
earn
.W
DRESS BARN INC <DBRN> 2ND QTR JAN 24 NET.
    STAMFORD, Conn., March 4 -
    Shr 30 cts vs 21 cts
    Net 3,358,000 vs 2,276,000
    Sales 43.3 mln vs 33.5 mln
    1st half
    Shr 60 cts vs 42 cts
    Net 6,654,000 vs 4,638,000
    Sales 86.6 mln vs 66.4 mln
    NOTE: Share adjusted for three-for-two stock split in May
1986.


.I 17884
.C
earn
.W
WILLIAMS <WMB> HAS 4TH QTR CHARGE.
    TULSA, March 4 - Williams Cos said a fourth quarter charge
of 250 mln dlrs from discontinued operations and writedowns
contributed to a 1986 net loss of 240 mln dlrs or 6.97 dlrs a
share against earnings of 31.6 mln dlrs or 92 cts in 1985.
    The loss in the quarter was 232.3 mln dlrs or 6.75 dlrs
against income of 10.7 mln dlrs or 31 cts a year ago. Revenues
in the quarter fell to 521.1 mln dlrs from 716.9 mln and in the
year fell to 1.9 billion dlrs from 2.5 billion in 1985.
    Williams also said the previously announced sale of its
Agrico Chemical Co unit to Freeport-Mcmoran Resource Partners
Ltd has cleared antitrust review and should close next week.
    The 1987 first quarter will include proceeds from the
Agrico sale, for 250 mln dlrs cash at closing plus deferred
payments, and proceeds of 320 mln dlrs from the sale of a stake
in Peabody Holding Co, completed in January.
    In the 1986 first quarter, Williams reported net of 14.2
mln dlrs or 41 cts a share on sales of 796.4 mln dlrs.
    Williams said the charges in the current year were related
to an ongoing restructuring. The company said the restructuring
moves had improved its balance sheet and improved the outlook
for future stability and growth in earnings.
    Operating profit at the company's Northwest Pipeline Corp
unit fell 4.5 pct to 150 mln dlrs from lower sales. The
Williams Natural Gas unit had operating profit of 50.5 mln dlrs
compared to 90.9 mln dlrs on lower sales volumes.
    Profit at Williams Gas Marketing rose to 26 mln dlrs from
about 22 mln and the William Pipe Line Co had operating profit
of 49.4 mln dlrs versus 63.6 mln dlrs a year ago.


.I 17885
.C
earn
.W
PERRY DRUG STORES INC <PDS> 1ST QTR JAN 31 NET.
    PONTIAC, Mich., March 4 -
    Shr 13 cts vs 37 cts
    Net 1,300,000 vs 3,700,000
    Sales 189 mln vs 163 mln


.I 17887
.C
earn
.W
NWA INC <NWA> 4TH QTR NET.
    MINNEAPOLIS, March 4 -
    Shr profit 45 cts vs loss nine cts
    Net profit 9.8 mln vs loss two mln
    Revs 1.15 billion vs 631.2 mln
    Year
    Shr profit 3.26 dlrs vs profit 3.18 dlrs
    Net profit 76.9 mln vs profit 73.1 mln
    Revs 3.59 billion vs 2.66 billion


.I 17889
.C
earn
.W
CAMCO INC <CAM> SETS QUARTERLY.
    HOUSTON, March 4 -
    Qtly div 11 cts vs 11 cts prior
    Pay April 14
    Record March 17


.I 17895
.C
acq
.W
SENATE'S PROXMIRE URGES CURBS ON TAKEOVERS.
    WASHINGTON, March 4 - Senate Banking Committee chairman
William Proxmire called for curbs of hostile corporate
takeovers and new restrictions on risk arbitrageurs.
    "At the very least, it is high time that we require all risk
arbitrageurs to register seperately and specifically  with the
Securities and Exchange Commission and that we consider
precluding brokerage firms and their employers from investing
in, or owning any securities issued by, third party risk
arbitrage operations," Proxmire said at the start of a hearing
on corporate takeovers.
    "A burning issue must be whether there ought to be a
complete seperation in the future of risk arbitrage and
investment banking," Proxmire said.
    He said he was concerned that hostile takeover attempts
were hurting the economy, a view shared by corporate executives
who tesitified at the hearing. "I believe that takeovers have
become so abusive and so tilted in favor of the financial
buccaneers that remedial action is required," USX Corp chairman
David Roderick said. "For Congress to allow the takeover game to
continue unchecked, would be economic suicide," Champion
International Corp chairman Andrew Sigler added.


.I 17896
.C
trade
.W
SPAIN TO LAUNCH EXPORT DRIVE.
    MADRID, March 4 - Spain unveils a 105 billion peseta plan
this month aimed at boosting exports to reach European
Community levels, director-general of the INFE export
institute, Apolonio Ruiz Ligero, said.
    "The target is to raise exports to 20 pct of Gross Domestic
Product over the next four years compared to 15 pct now," he
said.
     "This is the minimum prevailing level in the EC and there
is no reason why we should lag behind countries like Italy,
which have a similar productive structure," he said.
    The plan calls for providing soft loans, tax cuts and other
fiscal benefits to exporters and raising Spain's presence in
international trade fairs.
    Consumer goods such as fashion and wine, as well as
traditional industrial exports will be promoted.
    Ruiz Ligero said INFE would double its annual budget to 20
billion pesetas to finance the four-year plan, while the
government's development aid fund (FAD) would provide a special
25 billion peseta grant.
    The plan calls for boosting exports by five to six pct in
real terms this year after a 7.4 pct decline last year.
    Ruiz Ligero attributed this drop to a lack of demand in
developing countries and a rally in domestic consumer demand,
which rose six pct last year after 1.9 pct in 1985.
    He added that 80 pct of Spain's exports went to
Organisation for Economic Cooperation and Development (OECD)
countries.
    The EC accounts for 60 pct of the market and exports to the
Community rose seven pct last year. The government plans to
concentrate efforts on Western Europe and the U.S.
    "The problem is convincing businessmen that exports are
vital to survival in the context of EC competition," he said.
    He said Spanish businessmen traditionally turned to the
domestic market to satisfy rises in consumer demand, while
turning their backs on foreign markets.
    "They have to realise their share of the home market is
going to shrink with growing deregulation," he said. "Foreign
companies are taking up positions in the domestic economy and
it is it vital to secure a market share abroad."


.I 17898
.C
acq
.W
ROSSIGNOL UNIT BUYS CANADIAN SKI BOOT MAKER.
    PARIS, March 4 - French ski and tennis equipment maker
<Skis Rossignol> said its 97.7-pct owned subsidiary <Skis
Dynastar SA> agreed to buy Canadian ski stick and boot
manufacturer <CFAS> from <Warrington Inc>.
    A Rossignol spokesman declined to give financial details
but said turnover of CFAS was about 100 mln French francs,
doubling the Rossignol group's activities in the boot and stick
sectors.


.I 17901
.C
earn
.W
USF AND G CORP <FG> RAISES QUARTERLY DIVIDEND.
    BALTIMORE, Md., March 4 -
    Qtly div 62 cts vs 58 cts in the prior quarter
    Payable April 30
    Record March 20


.I 17906
.C
earn
.W
<BRNF LIQUIDATING TRUST> SETS DISTRIBUTIONS.
    WILMINGTON, Del., March 4 - BRNF Liquidating Trust said
trustees declared a 13th liquidating dividend of 1.10 dlrs per
unit, payable April One to holders of record of its Series A, B
and C certificates on March 18.
    The trust had paid a 12th liquidating distribution on
January 15 amounting to 1.750 dlrs on Series A, 1.815 dlrs on
Series B and 1.765 dlrs on Series C certificates.


.I 17910
.C
earn
.W
STANLINE INC <STAN> 1ST QTR JAN 31 NET.
    NORWALK, Conn., March 4 -
    Shr 20 cts vs 15 cts
    Net 345,970 vs 257,252
    Revs 14.0 mln vs 13.4 mln
    NOTE: Share adjusted for five pct stock dividend in
December 1986.


.I 17911
.C
pet-chem
.W
DOW CHEMICAL CO <DOW> UNIT INCREASES PRICES.
    MIDLAND, Mich., March 4 - The Dow Chemical Co said its
Engineering Thermoplastics Department will increase the selling
prices of standard grades of MAGNUM ABS resins by three cts per
pound.
    It also announced an increase of five cts per pound for
performance grades of the resins.
    Both increases are effective April 1, 1987.



.I 17912
.C
earn
.W
SWIFT ENERGY CO <SFY> 4TH QTR NET.
    HOUSTON, March 4 -
    Shr 12 cts vs eight cts
    Net 485,866 vs 316,193
    Revs 1,741,508 vs 1,440,154
    Year
    Shr 28 cts vs 20 cts
    Net 1,108,314 vs 778,197
    Revs 5,073,178 vs 3,687,160


.I 17914
.C
earn
.W
BROWNING-FERRIS INDUSTRIES INC <BFI> IN PAYOUT.
    HOUSTON, March 4 -
    Qtly div 20 cts vs 20 cts prior
    Pay April 10
    Record March 20


.I 17915
.C
acq
.W
BUFFTON CORP <BUFF> BUYS B AND D INSTRUMENTS.
    FORT WORTH, Tex., March 4 - Buffton Corp said it completed
the purchase of B and D Industruments Inc for two mln dlrs cash
and 400,000 shares of common stock.
    It said B and D is a private company headquartered in
Kansas, and had sales of 4,700,000 dlrs in 1986.
    Buffton said the company designs and manufactures aviation
computer display systems and engine instrumentation.


.I 17916
.C
earn
.W
VEREINS- UND WESTBANK TO REORGANIZE NETWORK.
    HAMBURG, March 4 - Vereins- und Westbank AG <VHBG.F> plans
to streamline its branch network to improve its distribution of
financial services, management board member Eberhard-Rainer
Luckey said.
    He told a news conference on 1986 results that branches in
Hamburg and Schleswig-Holstein would be merged or closed, a
branch in Frankfurt opened and that the bank was considering
opening a branch in London.
    Luckey said the bank's total operating profits rose nearly
29 pct in 1986. Parent bank net profit rose to 47.7 mln from
42.2 mln and the dividend remained unchanged at 12 marks.
    The group balance sheet, including for the first time
VereinWest Overseas Finance (Jersey), rose 9.2 pct to 17.9
billion marks, Luckey said.
    The parent bank balance sheet rose 89 mln marks to 13.2
billion, while business volume was almost unchanged at 14.8
billion. Credit volume eased to 9.1 billion from 9.2 billion
while loans to companies rose seven pct.
    Foreign business and securities trading turnover also
increased. Higher earnings from trading on the bank's own
account contributed to record operating profits.
    Net interest income rose on firmer interest margins by 16.1
mln marks to 381.6 mln. Net commission income rose 6.6 mln to
156.7 mln, Luckey said.
    Foreign commercial business was influenced by a fall in
West German foreign trade but earnings were still satisfactory.
    The bank's exposure in Latin America was less than two pct
of its total foreign credit and in Africa less than one pct.
    The bank continued to sell some of its exposure in 1986,
and will also continue to stock up risk provisions, he said.


.I 17917
.C
trade
.W
BALDRIGE CONCERNED ABOUT KOREAN/TAIWAN DEFICITS.
    WASHINGTON, March 4 - Secretary of Commerce Malcolm
Baldrige expressed concern about the continuing U.S. trade
deficits with South Korea and Taiwan and said that without an
adjustment in exchange rates there is little likelihood of
improvement.
    Speaking to the President's Export Council, an industry
advisory group, Baldrige said the trade deficit issue was under
discussion with those countries.
    "I feel that unless we see an exchange rate adjustment we
probably won't be able to see much of a change in the large
surplus that Taiwan in particular has with us," he said.
    In a wide-ranging discussion on U.S. trade matters,
Baldrige also repeated U.S. concern about an attempted takeover
by Japan's Fujitsu company of Fairchild Computer.
    He said that the Japanese were resisting allowing U.S.
companies into the giant computer business while at the same
time attempting to acquire control of a U.S. company that does
major computer business in the U.S. market.
    Lastly, Baldrige said that the United States was hopeful
that it could complete a free market agreement with Canada by
the autumn, but said major issues, including acid rain,
remained unresolved.


.I 17918
.C
acq
.W
ALLWASTE <ALWS> TO MAKE ACQUISITION.
    HOUSTON, March 4 - Allwaste Inc said it has agreed in
principle to acquire an air-moving and related industrial
services company it did not identify for up to 1,400,000 dlrs
in common stock.


.I 17920
.C
earn
.W
CASTLE AND COOKE <CKE> TAKES FOURTH QTR LOSS.
    LOS ANGELES, March 4 - 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.


.I 17921
.C
interest
.W
FED EXPECTED TO ADD TEMPORARY RESERVES.
    NEW YORK, March 4 - 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.


.I 17924
.C
acq
.W
CONVENIENT FOOD MART <CFMI> AGREES TO BUY CHAIN.
    ROSEMONT, Ill, March 4 - 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.



.I 17926
.C
earn
.W
******WAL-MART STORES INC 4TH QTR SHR 65 CTS VS 47 CTS.
Blah blah blah.

.I 17930
.C
acq
.W
MARINE MIDLAND <MM> BUYS BROKERAGE ASSETS.
    NEW YORK, March 4 - 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.


.I 17932
.C
dlr;money-fx;
.W
******U.S. TREASURY DEPUTY ASST SECRETARY BERGER SAYS FURTHER DOLLAR DROP COULD CAUSE INFLATION.
Blah blah blah.

.I 17937
.C
sugar
.W
DOM REPUBLIC SELLS CZARNIKOW 35,000 TONS SUGAR.
    ****SANTO DOMINGO, March 4 - 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."


.I 17938
.C
gas
.W
EC BACKS NEW MOVE TO ENCOURAGE UNLEADED GASOLINE.
    BRUSSELS, March 4 - 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.


.I 17939
.C
crude
.W
******SUN RAISES CRUDE OIL POSTINGS ONE DLR ACROSS BOARD. WTI NOW 17.00 DLRS/BBL.
Blah blah blah.

.I 17942
.C
earn
.W
<DEVTEK CORP> 2ND QTR JAN 31 NET.
    TORONTO, March 4 -
    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


.I 17943
.C
earn
.W
SAXTON INDUSTRIES LTD <SAXIF> YEAR NET.
    TORONTO, March 4 -
    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


.I 17944
.C
earn
.W
TORONTO SUN PLANS TWO-FOR-ONE STOCK SPLIT.
    TORONTO, March 4 - <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.


.I 17945
.C
earn
.W
SERVO CORP OF AMERICA <SCA> 1ST QTR JAN 31 NET.
    HICKSVILLE, N.Y., March 4 -
    Shr 43 cts vs 41 cts
    Net 316,000 vs 298,000
    Sales 4,857,000 vs 4,543,000


.I 17946
.C
earn
.W
ELECTRO-NUCLEONICS INC <ENUC> 2ND QTR DEC 31.
    FAIRFIELD, N.J., March 4 -
    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.


.I 17947
.C
earn
.W
WAL-MART STORES INC <WMT> 4TH QTR JAN 31 NET.
    BENTONVILLE, Ark., March 4 -
    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


.I 17950
.C
earn
.W
<MIRTONE INTERNATIONAL INC> 1ST QTR DEC 31 NET.
    TORONTO, March 4 -
    Shr two cts vs two cts
    Net 407,396 vs 376,243
    Revs 5,341,353 vs 4,292,819


.I 17951
.C
dlr;money-fx;
.W
U.S. TREASURY AIDE WARNS ON INFLATION.
    WASHINGTON, March 4 - 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.


.I 17953
.C
rubber
.W
LEAF DISEASE HITS SRI LANKA RUBBER.
    By Feizal Samath, Reuters
    COLOMBO, March 4 - 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.


.I 17954
.C
earn
.W
PYRO ENERGY CORP <BTU> YEAR NET.
    EVANSVILLE, Ind., March 4 -
    Shr 36 cts vs 66 cts
    Net 4,775,000 vs 9,342,000
    Revs 105.5 mln vs 130.0 mln


.I 17955
.C
sugar
.W
EC COMMISSION DETAILS SUGAR TENDER.
    BRUSSELS, March 4 - 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.


.I 17959
.C
earn
.W
UNITRODE CORP <UTR> 4TH QTR JAN 31 LOSS.
    LEXINGTON, Mass., March 4 -
    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.


.I 17961
.C
earn
.W
BUEHLER INTERNATIONAL INC <BULR> 4TH QTR NET.
    CHICAGO, March 4 -
    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.


.I 17963
.C
earn
.W
STANHOME INC <STH> RAISES QUARTERLY TWO CTS.
    WESTFIELD, Mass., March 4 -
    Qtly div 23 cts vs 21 cts prior
    Pay April 1
    Record March 16


.I 17964
.C
earn
.W
INSTRON CORP <ISN> SETS QUARTERLY.
    CANTON, Mass., March 4 -
    Qtly div three cts vs three cts prior
    Pay April 2
    Record March 16


.I 17968
.C
cpi
.W
GERMAN INSTITUTE SEES INFLATION RISING IN 1987.
    HAMBURG, March 4 - 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.


.I 17971
.C
money-fx;interest;
.W
FED DRAFTS CURRENCY, RATE SWAP RISK GAUGE.
    WASHINGTON, March 4 - 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.


.I 17972
.C
earn
.W
IDEAL SCHOOL SUPPLY CORP <IDEL> 4TH QTR NET.
    OAK LAWN, Il., March 4 -
    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.


.I 17973
.C
earn
.W
SALOMON INC <SB> SETS REGULAR QUARTERLY.
    NEW YORK, March 4 -
    Qtly div 16 cts vs 16 cts prior
    Pay April One
    Rcord March 20


.I 17974
.C
ship;crude;
.W
JANUARY CRUDE OIL MOVEMENTS FALL SEVEN MLN TONS.
    LONDON, March 4 - 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.


.I 17975
.C
grain;livestock;carcass;
.W
EC SOURCES DETAIL NEW FARM SOCIAL PACKAGE.
     BRUSSELS, March 4 - 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.


.I 17979
.C
acq
.W
PIEDMONT AVIATION <PIE> BOARD TO MEET TODAY.
    NEW YORK, March 4 - 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.



.I 17980
.C
earn
.W
FIRST UNION <FUR> LEAVES DIVIDEND UNCHANGED.
    CLEVELAND, March 4 - 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.



.I 17981
.C
earn
.W
RYKOFF-SEXTON INC <RYK> 3RD QTR JAN 31 NET.
    LOS ANGELES, March 4 -
    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


.I 17983
.C
money-fx;interest;
.W
U.S., BRITAIN AGREE FURTHER BANK CAPITAL PROPOSALS.
    LONDON, March 4 - 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.


.I 17984
.C
earn
.W
SYSTEM SOFTWARE ASSOCIATES <SSAX> 1ST QTR NET.
    CHICAGO, March 4 - 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.


.I 17985
.C
earn
.W
GEICO CORP <GEC> RAISES QTRLY DIVIDEND.
    CHEVY CHASE, Md., March 4 -
    Qtrly div 34 cts vs 27 cts prior
    Pay March 31
    Record March 16



.I 17986
.C
earn
.W
STANLEY WORKS <SWK> SETS QUARTERLY.
    NEW BRITAIN, Conn., March 4 -
    Qtly div 19 cts vs 19 cts prior
    Pay March 31
    Record March 12


.I 17987
.C
earn
.W
NOVELL INC <NOVL> 1ST QTR JAN 31 NET.
    PROVO, Utah, March 4 -
    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.


.I 17988
.C
wheat;grain;
.W
FROST NOT EXPECTED TO DAMAGE POLAND'S WHEAT.
    WARSAW, March 4 - 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.


.I 17989
.C
earn
.W
BROWN-FORMAN <BFDB> TO CHANGE RECORD DATES.
    LOUISVILE, Ky., March 4 - 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.


.I 17990
.C
earn
.W
GOODYEAR TIRE <GT> DETAILS 1986 TAX REFUND.
    NEW YORK, March 4 - 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.


.I 17993
.C
earn
.W
GREAT NORTHERN NEKOOSA <GNN> ANNOUNCES SPLIT.
    STAMFORD, Conn, March 4 - 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.


.I 17995
.C
acq
.W
HARRIS LIFTS BUILDERS TRANSPORT <TRUK> STAKE.
    WASHINGTON, March 4 - 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.


.I 17997
.C
coffee
.W
COFFEE TALKS FAILURE SEEN PRESSURING U.S.
    By Greg McCune, Reuters
    WASHINGTON, March 4 - 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.


.I 17999
.C
acq
.W
INVESTORS HAVE 12.9 PCT OF EXOVIR <XOVR>.
    WASHINGTON, March 4 - 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.


.I 18000
.C
oilseed;grain;corn;soybean;sunseed;sorghum;
.W
TORRENTIAL RAINS HALT ARGENTINE GRAIN HARVEST.
    By Manuel Villanueva, Reuters
    BUENOS AIRES, March 4 - 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.


.I 18002
.C
acq
.W
LOTUS <LOTS> TO ACQUIRE <COMPUTER ACCESS CORP>.
    CAMBRIDGE, Mass., March 4 - 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.


.I 18003
.C
earn
.W
EQUITABLE OF IOWA COS <EQICA> 4TH QTR NET.
    DES MOINES, Iowa, March 4 -
    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.


.I 18004
.C
earn
.W
CORROON AND BLACK CORP <CBL> RAISES QUARTERLY.
    NEW YORK, March 4 -
    Qtly div 21 cts vs 16-1/4 cts prior
    Pay April One
    Record March 17


.I 18006
.C
trade
.W
EC APPOINTS NEW TRADE CHIEF.
    BRUSSELS, March 4 - 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.


.I 18008
.C
wheat;grain;cotton;rice;
.W
U.S. SENATOR TO PROPOSE 0/92 FOR 1987 CROPS.
    WASHINGTON, March 4 - 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.


.I 18016
.C
sugar
.W
INDIA BUYS UP TO 10 CARGOES SUGAR - TRADERS.
    LONDON, March 4 - 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.


.I 18019
.C
acq
.W
HAYES-ALBION <HAY> DELAYS SPECIAL MEETING.
    JACKSON, Mich., March 4 - Hayes-Albion Corp said it has
delayed the special meeting at which shareholders will vote on
its merger into Harvard Industries Inc <HAVA> until March 24
from March 17 due to a delay in Securities and Exchange
Commission clearance of proxy materials.


.I 18020
.C
earn
.W
GROSSMAN'S INC <GROS> 4TH QTR LOSS.
    BRAINTREE, Mass., March 4 -
    Oper shr loss nine cts vs profit 12 cts
    Oper net loss 1,791,000 vs profit 2,336,000
    Sales 242.9 mln vs 225.8 mln
    Year
    Oper shr profit 15 cts vs loss 17 cts
    Oper net profit 2,925,000 vs loss 3,324,000
    Sales 1.01 billion vs 875.6 mln
    NOTE: Net includes discontinued operations gain 2,437,000
dlrs vs loss 190.0 mln dlrs in quarter and losses 75.6 mln dlrs
vs 227.7 mln dlrs in year.
    Net includes loss 294,000 dlrs vs nil in quarter and gain
224.8 mln dlrs vs loss 1,750,000 dlrs in year from settlement
of liabilities under plan of reorganization from Chapter 11
bankruptcy.
    1986 quarter net includes 2,300,000 dlr provision for loss
on future store closings offset by reduction in pension
liabilities.


.I 18024
.C
acq
.W
COMDATA NETWORK <CDN> IN NEW ACQUISITION TALKS.
    NASHVILLE, Tenn., March 4 - Comdata Network Inc said it is
in active talks with other parties on a possible acquisition or
recapitalization of Comdata in an effort to maximize
shareholder values.
    Comdata said <Rosewood Financial Inc> together with
<Cypress Partners LP> and <Driftwood Ltd> have acquired over
five pct of Comdata stock and Rosewood intends to acquire over
15 pct of Comdata.
    Comdata said it has not yet reached a definitive agreement
with <Mason Best Co> for the previously-announced
recapitalization and self-tender offer.


.I 18025
.C
gold;copper;
.W
NORTHGATE <NGX> QUEBEC ORE RESERVES DECLINE.
    TORONTO, March 4 - Northgate Exploration Ltd said year-end
1986 ore reserves at its two Chibougamau mines in Quebec fell
to 8,141,150 short tons grading 0.077 ounce gold a ton and 1.63
pct copper from year-earlier 8,462,000 tons grading 0.077 ounce
gold ton and 1.67 pct copper.
    The company said it launched a 700,000 dlr exploration
program at the mines to increase production and ensure the
operations' continued long life.
    Ore production totaled 650,653 tons last year, it said,
estimating year-end reserves contained about 627,000 ounces of
gold and 265 mln pounds of copper.


.I 18026
.C
earn
.W
WEBCOR ELECTRONICS INC <WER> 3RD QTR DEC 31.
    GARDEN CITY, N.Y., March 4 -
    Shr loss 51 cts vs loss 44 cts
    Net loss 1.8 mln vs loss 1.5 mln
    Revs 3.1 vs 5.4 mln
    Nine months
    Shr loss 1.16 dlrs vs loss 1.33 dlrs
    Net loss 4.0 mln vs loss 4.6 mln
    Revs 9.9 mln vs 12.3 mln


.I 18028
.C
earn
.W
COMMUNICATIONS SYSTEMS INC <CSII> 4TH QTR NET.
    HECTOR, MINN., March 4 - 
    Shr 12 cts vs 10 cts
    Net 613,986 vs 534,093
    Revs 9,494,570 vs 7,591,564
    Year
    Shr 41 cts vs 59 cts
    Net 2,151,130 vs 3,111,317
    Revs 35.9 mln vs 33.7 mln
    NOTE: 1986 net includes gains from discontinued operations
equal to three cts compared with nine cts in 1985.


.I 18029
.C
gnp;bop;trade;
.W
TURKEY SEES 1.5 BILLION DLR DEFICIT IN 1986.
    ANKARA, March 4 - Turkey expects a 1986 balance of payments
deficit of 1.5 billion dlrs, well over target, but is taking
steps to improve its performance in this and other fields, Ali
Tigrel, director of economic planning at the State Planning
Organisation said.
    He told Reuters the shortfall was a direct consequence of
economic growth of nearly eight pct, up from 5.1 pct in 1985,
which he said resulted mostly from a surge in domestic demand.
    Tigrel acknowledged a need to cut inflation further after a
drop of more than 12 points to 24.6 pct in the Treasury
wholesale index last year.
    This year's target of 20 pct "might be attainable but the
economic management will have to be careful," he said.
    Tigrel, whose department produces the annual programme
which is central to the government's economic planning, said
Turkey's creditworthiness was at risk over the current account
shortfall, originally targeted at 695 mln dlrs.
    "We must alleviate the current account substantially to
sustain the creditworthiness that we have managed to secure
over the last five years," he added.
    His comment echoed last October's Organisation for Economic
Cooperation and Development report on Turkey, which said
Ankara's case for more medium-term financing on better terms
would look better if inflation were lower and the current
account deficit cut or turned into a surplus.
    "In 1987 we must reduce the rate of growth in public sector
investments, we must reduce the public sector deficit as a
percentage of GNP and we must achieve a very visible
improvement in the current account deficit," he said.
    Tigrel said a surge in public sector spending last year was
also to blame for the high deficits.
    Appropriations to government departments had been cut by
eight pct since the budget was passed in December and foreign
borrowing by municipalities had been restrained.
    "We are trying make sure that public bodies stick to the
investment programme and do not exceed their appropriations," he
said. It was hoped to bring the public sector borrowing
requirement down to five pct of GNP in 1987 from an estimated
5.6 pct in 1986.
    More modest GNP growth of five pct for 1987 was also
targeted, Tigrel said. Measures were being taken to encourage
exports, and production incentives were being considered.
    "We must try to make sure that more capacity is injected
into the Turkish economy in the coming years. The promotion
policy is geared to make sure that both foreign investment and
local private capital come more into play as far as
manufacturing capacity is concerned," Tigrel said.
    He said the process of structural adjustment of the Turkish
economy to free market policies, begun in 1980, was still under
way. Trade had been liberalised and a freer exchange rate
policy applied, but he acknowledged there was more to be done
in a country where the state still dominates industry and the
currency is only partially convertible.


.I 18034
.C
crude
.W
ENERGY/CALIFORNIA OIL PRODUCTION.
    BY MICHAEL FITZPATRICK, Reuters
    LOS ANGELES, March 4 - Drilling for oil in California is
likely to continue at last year's sharply reduced levels
despite recent gains in crude oil prices, industry analysts
said.
    Because much of the crude oil in California fields is
thick, heavy and expensive to extract, oil prices would have to
increase to near 1985's levels before any significant recovery
is seen in drilling, they said.
    "Companies will probably only drill their best prospects,"
said John Curti, an analyst with Birr Wilson Securities Inc.
    Few new wells now are being drilled.
    Only 33 rigs, about one-quarter of the total available,
were drilling for oil onshore in California last week, compared
to about 70 last year, said Bill Bolster of Munger Oil
Information Services, which tracks California drilling
activity.
    "It's in the dregs right now," said Bolster of the state's
drilling activity.
    Current prices are not enough to justify increased
drilling, said Ed Malmgreen of the California Independent
Producers Association.
    While an Organization of Petroleum Exporting Countries pact
to curb production boosted oil prices early this year, prices
eventually fell.
    Prices for California's marker grade, Line 63 blend, have
slumped about 20 pct in the last month to 14 dlrs from a high
of about 17 dlrs.
    More than half of California's oil comes from stripper
wells, those producing less than 10 barrels a day, and that
much of that oil costs between 18 and 25 dlrs a barrel to
extract, Malmgreen said.
    "It's not unusual for a stripper well to cost 18 dlrs,"
Malmgreen said.
    Many stripper wells along the southern California coast
produce eight times as much water as crude oil, and inland
wells frequently require the use of steam injection to spur
extraction of the thick, heavy oil, he said.
    The outlook for future production in California is clouded
by a lack of exploratory drilling now, analysts said.
    In the heart of California's oil patch, Kern County, which
produces about two-thirds of the state's oil, exploratory
drilling has slowed to a crawl.
    Only 55 exploratory wells were drilled in Kern County in
1986, compared to 137 in 1985, according to David Mitchell of
the state energy commission. So far this year only five
exploratory wells have been drilled.
    "I don't think they'll even get to what they did last
year," Mitchell said.
    No pickup in exploratory drilling is likely for the rest of
the decade, Mitchell said.
    Along with the fall in drilling has come a decrease in the
number of producing wells and overall production.
    Between February and October of 1986, the number of
producing oil wells in California fell 14 pct to 43,521 from
more than 50,000, said Bill Guerard of the California Energy
Commission.
    In line with that decrease, California's crude oil output
fell about 10 pct last year due to low oil prices and is
expected to remain at that lower level, analysts said.
    Between February and October 1986, California's crude oil
production slipped from an all-time high of 1.185 mln barrels
per day to 1.066 mln bpd, Guerard said.
    Total estimated crude oil production in California for 1986
was 408 mln bbls, compared with 424 mln bbls in 1985 and 405
mln bbl in 1983, according to the California Department of
Conservation.
    "Production in 1987 will probably hold around 1986 levels,"
Guerard said.


.I 18037
.C
nat-gas
.W
STANDARD OIL <SRD> IN TEXAS NATURAL GAS FIND.
    HOUSTON, March 4 - Standard Oil Co said the Friendswood
Development Number One well in the Fostoria or Deep Wilcox
Field of Montgomery County, Texas, flowed 4,500,000 cubic feet
of natural gas per day from depths of 14,252 to 14,486 feet
through a 14/64 inch choke.
    It said it has contracted for Perry Gas Cos Inc to purchase
natural gas from the well, and Perry will build a four-inch
gathering pipeline to connect to Natural Gas Pipeline Co's
transmission line.


.I 18038
.C
earn
.W
WEBCOR ELECTRONICS <WER> IN TECHNICAL DEFAULT.
    GARDEN CITY, N.Y., March 4 - Webcor Electronics Inc said it
remains in technical and payment default under its revolving
credit agreement and in technical default under certain other
obligations to its lender.
    Although its lender has not enforced its right to demand
payment of the debt in full, it continues to reserve its right
to do so at any time, it said.
    Earlier, Webcor reported a third quarter net loss of 1.8
mln dlrs and nine months net loss of 4.0 mln dlrs.


.I 18040
.C
acq
.W
FIRST SAVINGS BANK FLORIDA <FSBF> SETS MEETING.
    TARPON SPRINGS, Fla., March 4 - First Savings Bank of
Florida said it expects a special shareholder meeting to be
held around May 21 to consider the proposed merger into
Gibraltar Financial Corp <GFC>.
    It said the annual meeting will be held April 30 to elect
two directors and ratify the appointment of auditors.


.I 18041
.C
grain
.W
IZVESTIA SAYS SOVIET WINTER CROPS NEED RESEEDING.
    MOSCOW, March 4 - The government daily Izvestia said a
considerable amount of Soviet winter crops need to be reseeded
and the state 1987 grain harvest target of 232 mln tonnes will
not be easy to fulfil.
    Without giving figures, the newspaper said: "A considerable
part of the winter crops must be reseeded, but that creates
extra effort in the fields in spring."
    The Soviet Union has previously said nine mln hectares of
winter grain will have to be reseeded because of winterkill.
    A U.S. Department of Agriculture analyst in Washington has
said the figure of nine mln hectares would equal about 25 pct
of the total winter crop and would be the second highest
winterkill in 10 years.
    "The planned task of bringing in no less than 232 mln tonnes
of grain is not simple," Izvestia said.
    This week's sudden fall in temperatures has affected large
parts of the country and has caused fieldwork to stop in the
Ukraine, it said, adding that temperatures fell to as low as
minus 30 centigrade in Byelorussia.


.I 18044
.C
acq
.W
BORMAN'S <BRF> TO BUY SAFEWAY'S UTAH DIVISION.
    OAKLAND, Calif., March 4 - Safeway Stores Inc said it
agreed to sell the assets and operations of its Salt Lake City
Division to Borman's Inc under undisclosed terms.
    The division includes 60 operating supermarkets in five
states, most of which are in Utah, Idaho and Wyoming, together
with distribution and manufacturing facilities, Safeway said.
    It said sales for the division for the year ended January
three were about 350 mln dlrs.
    Safeway also said the transaction is subject to Borman's
ability to obtain financing and to successfully negotiate new
labor agreements with the various unions involved.


.I 18046
.C
acq
.W
FISHER FOODS <FHR> SAYS STAKE IN FIRM SOLD.
    BEDFORD HEIGHTS, Ohio, March 4 - Fisher Foods Inc said
<American Financial Corp> has sold its 1,500,000 Fishers
shares, a 44 pct interest, to a group consisting of <American
Seaway Foods Inc>, <Rini Supermarkets Inc> and <Rego
Supermarkets Inc>.
    The company said in connection with the transaction, all
five American Financial representatives have resigned from its
board.


.I 18049
.C
grain
.W
U.S. SENATE PANEL MAKES CONSERVATION EXEMPTION.
    WASHINGTON, March 4 - The U.S. Senate Agriculture Committee
approved a measure that would exempt farmers who planted
alfalfa or other multiyear grasses and legumes between 1981 and
1985 from a federal conservation requirement.
    Sen. Edward Zorinsky, D-Neb., said his bill would restore
equity under federal sodbuster rules, which currently deny farm
program benefits to farmers who, between 1981 and 1985, planted
alfalfa and other multiyear grasses and legumes without
interrupting the plantings with a row crop.
    An official from a leading conservation group, who asked
not to be identified, said the panel's move was "an unfortunate
first action" because it could lead to the exemption of
potentially millions of acres from the sod buster regulations,
established under the 1985 farm bill.


.I 18051
.C
earn
.W
PICO PRODUCTS INC <PPI> 2ND QTR JAN 31.
    LIVERPOOL, N.Y., March 4 -
    Shr profit three cts vs loss nine cts
    Net profit 103,664 vs loss 326,675
    Revs 7.6 mln vs 6.9 mln
    Six months
    Shr loss two cts vs loss 15 cts
    Net loss 78,246 vs loss 522,868
    Revs 14.7 mln vs 12.9 mln
    NOTE:1986 net includes gain of 43,185 or one cts in 2nd qtr
and six months for discount on early long-term debt repayment.


.I 18052
.C
acq
.W
OUTBOARD MARINE <OM> RISING ON TAKEOVER RUMOR.
    CHICAGO, March 4 - Wall Street traders said the stock of
Outboard Marine Corp was rising on a rumor over a cable
television program that Outboard is a likely takeover target of
Sun Chemical Corp <SNL>.
    Outboard was up 3-1/8 to 34-5/8. On Tuesday it rose 1-3/8
to 31-1/2 Tuesday.
    A report on Cable News Network today said Sun Chemical has
4.9 pct of Outboard and is conducting a study on whether to go
for control of the whole company.
    An Outboard Marine spokesman would not comment on the
rumor.
    The cable program said a buyout of Outboard would be for up
to 40 dlrs a share, or for a total of 680 mln dlrs.
    A spokesman for Sun Chemical was not immediately available.
    Outboard Marine last June adopted a shareholder rights plan
that will be triggered when a person or group acquires
beneficial ownership of 20 pct or more of its common or begins
a tender offer that would result in 30 pct ownership.
    Wayne Jones, vice president at Outboard for strategic
planning, said management wants to stay independent. "We are
not trying to sell the company. We are proceeding with our
strategic plans," he said.
    That plan includes integrating five boat companies that
Outboard Marine has bought since the middle of December. Jones
said all five will cost between 100 mln dlrs to 120 mln dlrs.
    An analyst who wanted anonymity said 40 dlrs a share is a
"decent" price for outboard. "A bdding war to 50 or 60 dlrs a
share is stretching it. Maybe 45 dlrs a share tops," he said.
    Outboard, which has 17 mln shares outstanding, is in
registration for a two mln common share offering with Morgan
Stanley Inc. It makes sense, the analyst said, for Sun Chemical
to strike before the offering is underway.


.I 18056
.C
earn
.W
<ALGOMA CENTRAL RAILWAY> 4TH QTR NET.
    TORONTO, March 4 -
    Oper shr 36 cts vs 39 cts
    Oper net 1,391,000 vs 1,485,000
    Revs 61.6 mln vs 58.5 mln
    YEAR
    Oper shr 70 cts vs 1.16 dlrs
    Oper net 2,677,000 vs 4,410,000
    Revs 207.6 mln vs 200.2 mln
    Note: 1986 net excludes extraordinary loss of 297,000 dlrs
or eight cts shr vs yr-ago gain of 514,000 dlrs or 13 cts shr.


.I 18057
.C
earn
.W
GENOVA INC <GNVA> 1ST QTR DEC 27 NET.
    DAVISON, Mich., March 4 -
    Oper shr profit four cts vs loss four cts
    Oper net profit 151,448 vs loss 170,709
    Sales 11.5 mln vs 9,581,406
    NOTE: Prior year net includes 123,650 dlr tax credit but
excludes 52,409 dlr gain on early debt retirement.


.I 18058
.C
wheat;grain;
.W
FRENCH WHEAT EXPORTS TO EC FALL.
    PARIS, March 4 - French soft wheat exports to other
European Community countries fell 18 pct to 4.13 mln tonnes in
the first seven months of the 1986/87 season to January
compared with 5.04 mln in the same 1985/86 period, the French
Cereals Intervention Office (ONIC) said.
    According to latest ONIC statistics, the main buyers were
Italy with 1.89 mln against 1.63 mln in the same 1985/86
period, West Germany 480,450 tonnes against 717,689, the
Netherlands 462,048 (532,299) and Belgium 417,887 tonnes
(919,337).
    British and Greek imports of French soft wheat during this
period were below year-ago levels. Between July 1 last year and
January 31, Britain bought 274,665 tonnes against 642,800
tonnes, ONIC figures showed.
    But Spanish purchases were up sharply at 258,507 tonnes
against 2,751 tonnes in the same 1985/86 period and Portugal
bought 37,599 tonnes compared with zero.
    ONIC said the drop in French exports to other Community
countries was due to British competition.


.I 18060
.C
earn
.W
SUPREME EQUIPMENT/SYSTEMS CORP <SEQP> 2ND QTR.
    BROOKLYN, N.Y., March 4 -
    Shr 61 cts vs 18 cts
    Net 670,000 vs 194,000
    Revs 10.7 mln vs 10.4 mln
    Six months
    Shr 73 cts vs 35 cts
    Net 798,000 vs 377,000
    Revs 19.5 mln vs 19.8 mln
    NOTE:1987 net includes gain of 362,000 dlrs in 2nd qtr and
431,000 dlrs in six months from tax loss carryforward.


.I 18061
.C
earn
.W
GULF APPLIED TECHNOLOGIES INC <GATS> 4TH QTR.
    HOUSTON, March 4 -
    Oper shr loss five cts vs loss 24 cts
    Oper net loss 165,000 vs loss 802,000
    Revs 4,988,000 vs 3,101,000
    Year
    Oper shr loss 13 cts vs loss 1.33 dlrs
    Oper net loss 454,000 vs loss 4,407,000
    Revs 23.1 mln vs 8,937,000
    NOTE: Results restated for discontinued operations.
    1986 net both periods excludes 143,000 dlr tax credit.
    Net excludes gains from discontinued pipelines and
terminals operations of 216,000 dlrs vs 99,000 dlrs in quarter
and 527,000 dlrs vs 296,000 dlrs in year.


.I 18062
.C
earn
.W
VAN DORN CO <VDC> 4TH QTR NET.
    CLEVELAND, March 4 - 
    Shr 55 cts vs 80 cts
    Net 2,517,443 vs 3,633,217
    Revs 79.1 mln vs 76.3 mln
    12 mths
    Shr 2.57 dlrs vs 3.41 dlrs
    Net 11.7 mln vs 15.4 mln
    Revs 305.1 mln vs 314.3 mln


.I 18066
.C
earn
.W
FIELDCREST CANNON INC <FLD> SETS QUARTERLY.
    EDEN, N.C., March 4 -
    Qtly div 17 cts vs 17 cts prior
    Pay March 31
    Record March 17


.I 18067
.C
acq
.W
VARIAN <VAR> BUYS ANALYTICHEM INTERNATIONAL.
    PALO ALTO, Calif., March 4 - Varian Associates Inc said it
acquired all the outstanding stock of closely-held Analytichem
International Inc for an undisclosed amount of cash.
    Analytichem, based in Harbor City, Calif., is a supplier of
bonded phase preparation products used to prepare chemical
samples for analysis, Varian said.


.I 18068
.C
earn
.W
KANEB SERVICES INC <KAB> 4TH QTR LOSS.
    HOUSTON, March 4 - 
    Oper shr loss 1.05 dlrs vs profit nine cts
    Oper net loss 30.5 mln vs profit 3,930,000
    Revs 23.9 mln vs 45.6 mln
    12 mths
    Oper shr loss 5.30 dlrs vs profit 34 cts
    Oper net loss 155.8 mln vs profit 16.0 mln
    Revs 113.7 mln vs 178.8 mln
    Note: Oper excludes loss from discontinued operations of
9,127,000 dlrs vs 12.4 mln dlrs for qtr and 28.4 mln dlrs vs
960,000 dlrs for 12 mths.
    Note: Oper includes writedown of offshore drilling
equipment of 5,070,000 dlrs for qtr and 27.9 mln dlrs for 12
mths.
    Also includes writedowns of oil and gas assets and tubular
goods inventory of 82.2 mln dlrs and 4,246,000 dlrs,
respectively, for 12 mths.


.I 18069
.C
earn
.W
SUSPENSIONS/PARTS INDUSTRIES LTD <SPILF> YEAR.
    NEW YORK, March 4 -
    Shr 33 cts vs 60 cts
    Net 1.1 mln vs 1.7 mln
    Revs 11.7 mln vs 10.6 mln
    NOTE:Full name is Suspensions and Parts Industries Ltd.


.I 18070
.C
grain;barley;corn;
.W
ESTIMATED FRENCH BARLEY STOCKS WORRYING - ONIC.
    PARIS, March 4 - The size of French 1986/87 carryover
barley stocks, estimated at 1.72 mln tonnes compared with
700,000 tonnes in 1985/86 is worrying, French Cereals
Intervention Office (ONIC) Director Bernard Vieux said.
    He told journalists these estimates were unchanged at the
end of February from the previous month while export forecasts
were lowered to 4.5 mln tonnes from 5.76 mln in 1985/86.
    Vieux called on the EC Commission to help by awarding a
larger volume of export certificates and said if no outlets are
opened for French barley a large amount could be put into
intervention.
    A small amount of French barley has already been put into
intervention, Vieux said without detailing the amount.
    The outlook for French maize is better with 1986/87 exports
to non-EC countries now put at 700,000 tonnes against 200,000
tonnes at the end of January and against 155,000 tonnes in
1985/86.
    The higher estimate is due to the EC Commission's decision
to hold special export tenders for French maize, he said.


.I 18071
.C
earn
.W
MITCHELL ENERGY AND DEVELOPMENT CORP <MND>PAYOUT.
    WOODLANDS, Texas, March 4 -
    Qtly div six cts vs six cts prior
    Pay April Two
    Record March 18


.I 18073
.C
earn
.W
FROST AND SULLIVAN INC <FRSL> 2ND QTR JAN 31.
    NEW YORK, March 4 -
    Shr profit 12 cts vs loss two cts
    Net profit 182,173 vs loss 28,977
    Revs 4,483,047 vs 3,994,808
    1st half
    Shr profit 14 cts vs loss eight cts
    Net profit 221,376 vs loss 120,435
    Revs 8,270,947 vs 7,150,265


.I 18074
.C
trade
.W
S. KOREAN TRADE SURPLUS WITH U.S. SEEN FALLING.
    CHICAGO, March 4, - South Korea's record 7.1 billion dlrs
trade surplus with the U.S. is bound to diminish as the
country switches purchases from Japan in favor of U.S.
companies, Trade Minister Woong-Bae Rha said.
     He rejected suggestions the Korean Won is undervalued, and
denied any plans for a "drastic and sudden" revaluation.
    Rha is heading a trade mission to 37 U.S. cities. Last year
South Korea ran a 4.3 billion dlr trade surplus, including a
record 7.1 billion surplus with the U.S. and a 5.5 billion dlr
deficit with Japan.
    Rha told Reuters in an interview the current trade mission
is looking for 2.0 billion dlrs in purchases from U.S.
companies, about a quarter of which represents "transferred
purchases from Japanese sources."
    Rha said the items being sought by the current mission are
"mainly chemicals, machinery and parts."
    He said South Korea is the fourth largest importer of U.S.
agricultural products. The current mission is not involved in
that area but there are plans to buy "substantial amounts of
cotton" from the U.S.
    He noted his country "is clearly not as open as the American
market. Nor is it reasonable to expect that it should be,"
considering South Korea has a 40 billion dlr foreign debt and
spends six pct of its gross national product on defense.


.I 18075
.C
earn
.W
CRI INSURED <CII> TO SET SPECIAL DISTRIBUTION.
    ROCKVILLE, Md., March 4 - CRI Insured Mortgage Investments
Inc said its advisor will recommend a special distribution of
50 cts per share due to the sale of a federally insured first
mortgage on Park Meadows I in Madison, Wis., for 4,267,871
dlrs.
    It said it received a 3,695,465 dlr return of capital and
572,406 dlrs in income on the sale, and the 50 ct distribution
would represent a 43.294 ct return of principal and a 6.706 ct
capital gain and would be payable June 30 to holders of record
May 31.


.I 18076
.C
earn
.W
KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS.
    HOUSTON, March 4 - 
    Unit loss one ct
    Net loss 186,000
    Revs 10.7 mln
    11 mths
    Unit loss 7.26 dlrs
    Net loss 121.4 mln
    Revs 46.9 mln
    Note: Partnership formed in February 1986.
    Net includes writedown of oil and gas assets of 124.8 mln
dlrs for 11 mths to comply with full-cost accounting methods.


.I 18077
.C
acq
.W
DIGICON <DGC> COMPLETES SALE OF UNIT.
    HOUSTON, March 4 - Digicon Inc said it has completed the
previously-announced disposition of its computer systems
division to an investment group led by <Rotan Mosle Inc's>
Rotan Mosle Technology Partners Ltd affiliate.


.I 18078
.C
gas;fuel;
.W
TEXAS EASTERN <TET> BUYS PETROLEUM TERMINAL.
    HOUSTON, March 4 - Texas Eastern Corp said it has completed
the purchase of an idle petroleum products terminal near Norris
City, Ill., from <Growmark Inc> for undisclosed terms and will
reopen it in September after remodeling.
    The company said the terminal will handle leaded and
unleaded regular gasolines, number two fuel oil, ethanol and
natural gasoline.


.I 18079
.C
crude;nat-gas;
.W
STERLING IN TEXAS GAS AND OIL DISCOVERY.
    FT. LAUDERDALE, Fla, March 4 - <Sterling Investment Group>
said it successfully drilled and completed a significant
development well 65 miles southwest of Houston, Texas.
    The well has a choke of 11/64 of an inch and is 10,097 feet
deep.
    The well initially tested at a maximum daily flow rate of
two mln cubic feet of gas and 304 barrels of condensate.
    Participants in the new well, along with Sterling, are
Trafalgar House Ltd of the U.K. and <Texstar NOrth America Inc.>


.I 18083
.C
acq
.W
COMPUTER HORIZONS <CHRZ> IN ACQUISITION.
    NEW YORK, March 4 - Computer Horizons Corp said it
purchased ComputerKnowledge Inc, a software training education
company headquartered in Dallas.
    Terms were not disclosed.
                


.I 18084
.C
acq
.W
POLICY MANAGEMENT <PMSC> MAKES ACQUISITION.
    COLUMBIA, S.C., March 4 - Policy Management Systems Corp
said it has acquired the majority of the assets and business of
Allied Research Inc of Salem, Ore., and Consolidated Insurance
Services Inc, of Springfield, Va., for undisclosed terms.
    It said the two companies, which had combined 1986 revenues
of about two mln dlrs, provide underwriting information
services to property and casualty insurers.


.I 18085
.C
acq
.W
UNICORP CANADA<UNI.A> CUTS PUROLATOR<PCC> STAKE.
    WASHINGTON, March 4 - Unicorp Canada Corp told the
Securities and Exchange Commission it cut its stake in
Purolator Courier Corp to 286,500 shares, or 3.7 pct of the
total outstanding, from 962,400 shares, or 12.4 pct.
    Unicorp, a management and investment holding company
controlled by its chairman, George Mann, said it sold 675,900
Purolator common shares on March 2 and 3 at 34.782 and 34.750
dlrs a share.
    Purolator agreed this past weekend to be acquired by
managers of its U.S. courier business and E.F. Hutton LBO Inc
in a leveraged buyout valued at 265 mln dlrs.


.I 18091
.C
acq
.W
FIRM ACQUIRES <AMERICAN NUTRITION WORKS INC>.
    PITTSBURGH, March 4 - <Nusource Investments Inc>, a
publicly held shell company, said it acquired American
Nutrition Works Inc through a transaction in which American
Nutrition shareholders received 28 mln shares of Nusource stock
in exchange for their shares.
    American Nutrition operates a chain of stores sellings
vitamins and health products.
    Nusource said shareholders elected a new board consisting
of Richard A. Trydahl, Samuel Mineo and Charles E. Flink and
voted to change the name of the company to ANW Inc.


.I 18092
.C
wheat;grain;
.W
CANADA WHEAT BOARD ADVISES CUT IN GRAIN PRICES.
    WINNIPEG, March 4 - The Canadian Wheat Board has advised
the federal government to sharply cut initial prices paid to
farmers for their wheat, oats, and barley in the crop year
beginning August 1, a board spokesman said.
    The spokesman declined to give the size of the recommended
price drops but said it would not be good news for western
Canadian grain growers.
    "They're all lower," he said. "This is really getting
pretty serious. We're talking nuts and bolts economic survival
and whether it's worthwhile for farmers to put in a crop."
    Farm leaders and economists have estimated the board will
recommend cuts of around 20 pct in the initial prices.
    Farmers receive the initial payment when the grain is
delivered to the elevators used by the wheat board.
    If the wheat board, which markets most of Canada's grain,
obtains higher than expected prices on world markets, the
farmers receive a final payment at the end of the crop year. If
prices are lower, the federal treasury makes up the difference.
    The final decision on the initial prices, usually made in
April, rests with Wheat Board Minister Charles Mayer and the
federal cabinet.
    Last year Mayer cut the initial prices between 19 and 27
pct but last fall the government announced a one billion
Canadian dlr aid program to compensate for the price cuts.
    But federal agricultural officials have already warned
farmers not to depend on additional government aid this year.


.I 18093
.C
trade
.W
GATT COUNCIL DEFERS DECISION ON SEMICONDUCTORS.
    GENEVA, March 4 - The ruling GATT Council deferred a
decision on whether to set up a dispute panel on the basis of a
European Community complaint against the U.S.- Japanese
agreement on exports of computer semiconductors.
    David Woods, spokesman of the General Agreement on Tariffs
and Trade (GATT), told a news briefing that the main parties
would continue bilateral talks. This was in the hope of
resolving the row before the next Council meeting on April 15.
    The five-year accord signed in July 1986 aims to protect
the U.S. Market from dumping of low-price Japanese microchips,
officially known as semiconductors.
    The E.C. Complained the accord breached GATT trade rules by
allowing Tokyo to monitor prices, allowing it to set minimum
prices for Japanese chips sold in third countries.
    The 12-nation Community also charged the agreement gave
U.S. Producers preferential access to the Japanese market.
    Woods said many nations -- Hong Kong, Canada, Switzerland,
Singapore, Sweden, Malaysia and Nigeria -- had supported the EC
complaint during the heated Council debate.
    Japan's delegate, Minoru Endo, and U.S. Ambassador Michael
Samuels replied in the debate that the E.C. Charges were
unfounded, but they were willing to continue bilateral talks.


.I 18094
.C
acq
.W
FIRST SOUTHERN <FSFA> TO MAKE ACQUISITION.
    MOBILE, ALA., March 4 - First Southern Federal Savings and
Loan Association said it has agreed in principle to acquire
Horizon Financial Corp and Horizon Funding corp from <Victor
Federal Savings and Loan Association> of Muskogee, Okla., for
undisclosed terms.
    The company said the purchase is subject to approval of the
boards of First Southern and Victor and regulatory agencies.
    Horizon Financial services mortgage loans and Horizon
Funding is a wholesale loan purchasing operation. Horizon
services 3.2 billion dlrs in mortgage loans.


.I 18095
.C
earn
.W
DANAHER CORP <DHR> 4TH QTR NET.
    WASHINGTON, March 4 -
    Shr 71 cts vs 43 cts
    Net 7,274,000 vs 4,447,000
    Rev 161.6 mln vs 77.6 mln
    Year
    Shr 1.51 dlrs vs 1.32 dlrs
    Net 15,401,000 vs 13,525,000
    Rev 454.0 mln vs 304.9 mln
   


.I 18096
.C
acq
.W
FIRM AGREES TO MERGE WITH LOTOQUIK INT'L.
    FORT LAUDERDALE, Fla., March 4 - <Chatsworth Enterprises
Inc>, a publicly held shell corporation, said it signed a
letter of intent to merger with <Lotoquik International Ltd>, a
Nassau, Bahamas-based maker of video lottery machines.
    Under terms of the merger agreement, Chatsworth said
Lotoquik shareholders would own a majority of the surviving
company.


.I 18097
.C
acq
.W
ASBESTEC TO BUY CONTRACTOR, RECEIVES CONTRACT.
    PENNSAUKEN, N.J., March 4 - <Asbestec Industries Inc> said
it signed a letter of intent to buy asbestos abatement
contractor <P.W. Stephens> for three mln dlrs in cash, stock
and notes.
    The transaction is expected to be completed early in the
third quarter of its fiscal year ending September 30, 1987.
    Asbestec also said it expects to sign March six a 900,000
dlr contract to remove asbestos from a major apartment complex
in Washington, D.C. The project is scheduled to begin on March
nine.


.I 18098
.C
trade
.W
GATT SETS UP DISPUTE PANEL ON CANADIAN HERRING.
    GENEVA, March 4 - The ruling GATT Council set up a formal
dispute panel to examine a U.S. Complaint that a Canadian law
prohibiting export of unprocessed herring and salmon was
discriminatory.
    David Wood, official spokesman of the General Agreement on
Tariffs and Trade (GATT), told a news briefing the decision was
taken after bilateral consultations failed to resolve the row.
    U.S. Ambassador Michael Samuels charged during the Council
debate that Canada was trying to preserve domestic jobs by
insisting that herring and salmon be processed at home.
    Robert White, Canada's deputy chief of delegation, replied
the law was in line with GATT rules, and was for conservations
reasons. But he agreed to setting up the dispute panel.


.I 18099
.C
cpi
.W
COLOMBIAN INFLATION RISES 2.03 PCT IN FEBRUARY.
    Bogota, march 4 - colombia's cost of living index rose 2.03
pct in february after a 3.27 pct increase in january and a 3.15
pct rise in february 1986, the government statistics institute
said.
    The rise brought year-on-year inflation to 19.77 pct
compared with 23.72 pct at end-february 1986 and 21.66 pct for
the year ending january 1987.
    The government has predicted that inflation this year would
be lower than in 1986 when it reached 20.9 pct.


.I 18100
.C
earn
.W
TALKING POINT/GENERAL MOTORS <GM>.
    By Steven Radwell, Reuters
    NEW YORK, March 4 - General Motors Corp staged an explosive
rally on Wall Street after a share buyback program announced
yesterday, but analysts said GM's future remains clouded by
stiff competition and erosion of market share.
    GM shares rose 3-1/2 to 79-1/8 in active trading. Analysts
agreed that investors liked the repurchase program but they 
differed sharply over the carmaker's long term prospects.
    "I'm very positive on GM," said Jack Kirnan of Kidder
Peabody and Co. "They're clearly committed to enhancing
shareholder value."
    However, some analysts worry about how GM will pay for the
buyback and whether new models will enable the carmaker to
recapture lost market share.
    After the market had closed yesterday, GM said it would buy
back 20 pct of its common stock by the end of 1990. The
announcement sent investors today scrambling for GM shares,
with more than 3.2 mln shares changing hands by mid-day.
    The buyback plan caused several analysts bullish on the
stock to reiterate buy recommendations this morning, and at
least one increased his earnings estimates for GM based on a
good performance expected from new car models.
    But David Healy of Drexel Burnham Lambert Inc said the
repurchase program is not a positive.
    "The buyback doesn't really change the earnings outlook and
puts more stress on the balance sheet," he said, since GM will
have to borrow money to pay for the stock purchases. The stock
should settle back down to around 76, he added.
    Healy projects GM will earn five dlrs a share in 1987 and
5.50 dlrs in 1988, compared to 1986 earnings of 8.21 dlrs.
Healy's numbers are near the low end of Wall Street estimates,
which range from five dlrs to 7.80 dlrs in 1987 and from four
dlrs to 10.80 dlrs in 1988.
    Like other analysts, Healy sees GM's share of the domestic
car and truck market falling in 1987. "On balance, GM cars are
not selling as well as their competitors," he said.
    In late February, GM car sales fell 8.6 pct from the
year-ago period while competitors Ford Motor Co <F> and
Chrysler Corp <C> both posted increases. But GM said February
sales showed improvement over January, adding that it expects
improvement in coming months.
    Overall, GM's share of U.S. car and truck sales should fall
to around 38 or 39 pct in 1987 from 41 pct at the end of 1986,
analysts said. The numbers include imports.
    Kidder Peabody's Kirnan said cost reductions and product
improvements this year should lead to positive cash flow by the
fourth quarter, which will help GM finance the buyback.
    "GM (stock) has been a real laggard and now it's rolling up
its sleeves and getting serious. I think there's a major
earnings surprise in the winds," he said.
    Kirnan raised his earnings estimates slightly today, in
part in reaction to the announced buyback, and sees GM earning
5.65 dlrs this year and 9.75 dlrs in 1988. "The company is more
concerned than ever about improving their relative valuation
with respect to Ford and Chrysler," he said.
    Another positive for the stock is GM's dividend, currently
five dlrs a share annually, which gives it a higher yield than
its competitors, Kirnan said. And GM will raise the cash
dividend 25 to 50 cts a share next year, he predicted.
    But analyst Michael Lucky of Shearson Lehman Brothers Inc
said U.S. car sales will weaken, and GM's new products, if
successful, will only slow but not halt the erosion of its
market share.
    "I believe their new cars will be successful, but that will
only curtail losses in market share," which will fall to around
35 pct by 1990, Lucky said.
    Philip Fricke of Goldman Sachs and Co falls in the middle
of the bulls and bears. While he is recommending GM stock, he
said results will not improve until 1988.
    "I'm not looking for improvement this year. This is a
transition year for GM," he said.
    Fricke, who estimates 1987 earnings at 7.80 dlrs and 1988
at 10.80 dlrs, said cost cutting and new car models will not
affect 1987 results. "But the key thing isn't so much what they
earn this year. It's the momentum beyond this year that's
important."


.I 18102
.C
acq
.W
PARTNERSHIP CUTS STAKE IN ERC INTERNATIONAL<ERC>.
    WASHINGTON, March 4 - Parsow Partnership Ltd, a Nevada
investment partnership, said it lowered its stake in ERC
International Inc to 343,500 shares or 8.3 pct of the total
outstanding common stock, from 386,300 shares, or 9.3 pct.
    In a filing with the Securities and Exchange Commission,
Parsow said it sold 42,800 ERC common shares between Jan 9 and
March 2 at prices ranging from 12.125 to 14.50 dlrs each.
    The partnership said its dealings in ERC stock are for
investment purposes and it has no intention of seeking control
of the company.


.I 18104
.C
crude
.W
IRANIAN OIL MINISTER DUE IN ALGERIA ON FRIDAY.
    ALGIERS, March 4 - Iranian Oil Minister Gholamreza Aqazadeh
is expected here on Friday for talks with his Algerian
counterpart Belkacem Nabi, the official Algerian news agency
APS said today.
    Aqazadeh, who will be accompanied by a large delegation,
will have talks on bilateral relations in the field of energy
and exchange views with Algerian officials on the current world
energy situation, it said.


.I 18106
.C
earn
.W
<GOLDOME FSB> YEAR NET.
    BUFFALO, N.Y., March 4 -
    Net 52.9 mln vs 21.9 mln
    NOTE: Company is mutual savings bank.


.I 18107
.C
earn
.W
BEAR AUTOMOTIVE SERVICE <BEAR> 4TH QTR OPER NET.
    MILWAUKEE, March 4 - 
    Oper shr 18 cts vs 28 cts
    Oper net 1,076,000 vs 1,441,000
    Sales 22.6 mln vs 21.2 mln
    Avg shrs 5,970,000 vs 5,080,000
    Year
    Oper shr 55 cts vs 49 cts
    Oper net 3,007,000 vs 2,521,000
    Sales 82.9 mln vs 73.7 mln
    Avg shrs 5,429,000 vs 4,484,000
    Note: Full company name is Bear Automotive Service
Equipment Co
    Oper shr excludes extraordinary profit from utilization of
tax loss carryforward of 231,000 dlrs, or four cts a share and
1.2 mln dlrs, or 22 cts a share, respectively, in 1986 qtr and
year, and of 441,000 dlrs, or nine cts a share and 1.1 mln
dlrs, or 23 cts a share, respectively, in 1985 qtr and year.
    1985 year oper net excludes loss from cumulative effect of
change in accounting principle of 67,000 dlrs, or one ct a
share.



.I 18110
.C
crude
.W
U.K. OIL INDUSTRY SAID NOT PERMANENTLY DAMAGED.
    LONDON, March 4 - The U.K. Offshore oil industry has
suffered from last year's collapse in oil prices but should not
sustain any permament damage, Minister of State for Energy
Alick Buchanan-Smith said.
    The drilling, diving and supply vessels sectors had been
most affected, Buchanan Snith told the House of Commons energy
committee. He noted, however, that oil companies were still
spending six mln stg a day to maintain North Sea production.
    He added that a report by the manpower services committee
which said 14,000 jobs were lost in the industry in 1986 should
be seen in the context of a total workforce of 300,000.
    Prices of North Sea Brent-grade crude dipped to a low of
8.50
dlrs a barrel last July from a peak of over 30 dlrs the
previous November.
    They recovered to around 18 dlrs a barrel after last
December's OPEC meeting and Brent traded today around 17.15
dlrs.
    Buchanan-Smith said the U.K. Has no intention of adopting
OPEC style quotas, noting that Britian is an oil-consuming as
well as an oil-producing nation.


.I 18111
.C
acq
.W
CHASE MANHATTAN STUDYING ITALIAN EXPANSION.
    Milan, March 4 - <Chase Manhattan Bank N.A.> is considering
expanding its operations in Italy, particularly in the consumer
banking sector, a Chase Manhattan official said.
    Robert D. Hunter, Chase Manhattan area executive for
Europe, Africa and the Middle East, said at a news conference
that plans to broaden the bank's activities on the Italian
market have not been finalised, however.
    Asked if Chase Manhattan would consider an acquisition in
Italy, Hunter said: "We will look at any opportunity, but the
prices of Italian banks have been quite high." Chase Manhattan
has branches in Milan and Rome.


.I 18112
.C
acq
.W
HRS <IHIRF> REDUCING STAKE IN HAL ROACH <HRSI>.
    TORONTO, March 4 - International H.R.S. Industries Inc said
it would reduce its stake in Hal Roach Studios Inc to 22 pct
from 52 pct in return for 6.3 mln U.S. dlrs from Qintex Inc's
Qintex America (Media) Ltd unit.
    H.R.S. said that under the deal's first stage, closng March
22, it would sell Qintex 900,000 Hal Roach shares at seven U.S.
dlrs a share each for a total of 6.3 mln dlrs and Roach will
repay H.R.S. 3.3 mln U.S. dlrs of advances.
    Qintex will also complete the 16.8 mln U.S. dlr buy of 2.4
mln Roach treasury shares at seven dlrs each and provide Roach
with 50 mln U.S. dlrs of financing for expansion, H.R.S. said.
    H.R.S. said that the agreement also provided for a second
stage over one year in which it had a put option exercisable 
one year from closing to sell Qintex all or part of its two mln
Roach shares for 8.50 U.S. dlrs a share.
    It said Qintex had a 30-day call option, exerciseable nine
months from closing, to buy from H.R.S. all or part of one mln
Roach shares at the greater of 8.50 dlrs each or the average
Roach share price for three months before exercise date.
    Qintex will also acquire another 2.4 mln Roach treasury
shares at seven dlrs a share 12 months after closng for another
16.8 mln dlrs, H.R.S. said.


.I 18114
.C
earn
.W
TOTAL STILL EXPECTS 1.5 BILLION FRANC 1986 LOSS.
    PARIS, March 4 - French oil group Total Cie Francaise des
Petroles <TPN.PA> is still expecting a 1.5 billion franc
consolidated net loss, including minority interests, for 1986,
after taking account of stock losses of 7.5 billion francs, the
company said in a communique after a board meeting here.
    In late January group president Francois-Xavier Ortoli told
journalists that the slump in oil prices and the weak dollar
had caused the stock depreciation, turning a consolidated net
profit, before losses on stocks, of six billion francs into a
consolidated net loss of 1.5 billion francs.
    Earlier today Armand Guilbaud, president of Total's
refining and distribution subsidiary Cie de
Raffinage-Distribution (CRD) Total France <RAFF.PA>, told
journalists that 1986 had marked a return to profit for the
subsidiary before stock depreciation.
    CRD made a net profit before stock depreciation and
currency factors of 1.95 billion francs last year after a 1.16
billion loss in 1985.
    But its net loss last year, taking account of that
depreciation as well as currency fluctuations, was 1.16 billion
francs after a 1.05 billion loss in 1985.
    In 1986 CRD's sales fell 5.7 pct to 19.7 mln tonnes from
20.9 mln "due to the growth in imports by independent
distributors following a relaxation of regulations," Guilbaud
said.
    The subsidiary is expecting to cut its workforce to 6,000
this year and 5,000 in 1988 from 6,800 last year, under a job
reduction scheme which will eventually save the group 600 mln
francs, he said.
    Concerning business in 1987, he said that "January was a
good month, but the situation deteriorated in February."


.I 18124
.C
earn
.W
STEEGO CORP <STG> 3RD QTR JAN 31 LOSS.
    WEST PALM BEACH, Fla., March 4 -
    Oper shr loss 16 cts vs loss 10 cts
    Oper net loss 1,569,000 vs loss 990,000
    Sales 50.3 mln vs 50.1 mln
    Nine mths
    Oper shr loss nine cts vs loss two cts
    Oper net loss 849,000 vs loss 199,000
    Sales 159.9 mln vs 156.6 mln
    NOTE: Current nine mths net includes 1,036,000 dlr pretax
gain on sale of property.
    Prior year net both periods includes pretax gain 1,095,000
dlrs on pension plan termination.
    Current quarter net includes 580,000 dlr tax credit.
    Prior year net includes losses from discontinued operations
of 200,000 dlrs in quarter and 573,000 dlrs in nine mths.
    Results restated for discontinued operations.


.I 18126
.C
earn
.W
E-SYSTEMS INC <ESY> SETS QUARTERLY.
    DALLAS, March 4 -
    Qtly div 12-1/2 cts vs 12-1/2 cts prior
    Pay April One
    Record March 13


.I 18127
.C
crude;nat-gas;
.W
RESOURCE EXPLORATION <REXI> IN DRILLING PACT.
    AKRON, Ohio, March 4 - Resource Exploration Inc said it has
agreed to let <Langasco Energy Corp> drill 50 oil and
natural gas wells on its Clinton Sandstone formation within its
Tuscarawas and Harrison County, Ohio area of operation.
    Resource said it would receive a cash payment and an
overriding royalty interest on oil and gas production from
wells drilled on the property.
    Resource said gas produced from the property will be
transported through its existing pipeline. Also, Resource said
it will provide service work to complete the wells and it will
operate the wells after they are completed.


.I 18129
.C
crude
.W
TEXAS OIL REGULATOR CALLS FOR STATE TAX BREAKS.
    AUSTIN, Texas, March 4 - Texas Railroad Commissioner James
Nugent, saying that the ailing oilpatch cannot wait for
Congress to act, today urged Texas state lawmakers to adopt
incentives to find new oil reserves and to exempt severance
taxes on oil produced from stripper wells.
    Nugent said in a speech to the Texas house of
representatives that the state must take the initiative in
molding U.S. energy policy and finding new ways to assist
troubled oil producers.
    His proposal to revitalize Texas' oil industry would exempt
stripper wells that produce 10 barrels of oil or less each day
from the state's 4.6 pct severance tax. He said that the
majority of Texas' oil wells fall within the stripper well
category and a price swing of two to three dlrs a barrel can be
crucial in determining if the well remains in production.
    Nugent also called for state lawmakers to exempt new
wildcat wells from the state severance tax for up to five years
as a financial incentive to explore for new oil reserves.
    Secondary and tertiary oil production, expensive methods of
production that inject water or gas into the ground to recover
oil, should also be exempted from the severance tax, Nugent
said. His plan would exempt existing secondary and tertiary
wells that produce at a rate of less than three barrels a day
for three years, or until the price of oil reaches $25 a
barrel.
    "We've been sitting back and waiting on two federal
administrations to develop a coherent energy policy for the
nation to follow. I say we have waited long enough," Nugent
said. "In other words, let's tell Washington to either lead,
follow, or get out of the way."
    Nugent said that the financial losses to the state treasury
by exempting marginal oil production from state severance taxes
would be more than made up by stimulating new business for the
oil supply and service industry.


.I 18132
.C
earn
.W
UNICORP AMERICAN CORP <UAC> SETS QUARTERLY.
    NEW YORK, March 4 -
    Qtly div 15 cts vs 15 cts prior
    Pay March 31
    Record March 13


.I 18133
.C
coffee
.W
COLOMBIA BLASTS U.S. FOR COFFEE TALKS FAILURE.
    BOGOTA, March 4 - Colombian finance minister Cesar Gaviria
blamed an inflexible U.S. position for the failure of last
week's International Coffee Organisation, ICO, talks on export
quotas.
    "We understand that the U.S. Position was more inflexible
than the one of Brazil, where current economic and political
factors make it difficult to adopt certain positions," Gaviria
told Reuters in an interview.
    The U.S. and Brazil have each laid the blame on the other
for the breakdown in the negotiations to re-introduce export
quotas after being extended through the weekend in London.
    Gaviria stressed that Colombia tried to ensure a successful
outcome of the London talks but he deplored that intransigent
attitudes, both from producing and consuming nations, made it
impossible.
    In a conversation later with local journalists, Gaviria
said the U.S. attitude would have serious economic and
political consequences, not necessarily for a country like
Colombia but certainly for other Latin American nations and for
some African countries.
    He told Reuters that Colombia, because of the relatively
high level of its coffee stocks, would probably suffer less.
    According to Gaviria, Colombia can hope to earn about 1,500
mln dlrs this calendar year from coffee exports, which
traditionally account for 55 pct of the country's total export
revenue.
    That estimate would represent a drop in revenues of 1,400
mln dlrs from 1986.
    Colombia, which held stockpiles of 10.5 mln bags at the
start of the current coffee year, exported a record 11.5 mln
bags in the 1985/86 coffee year ending last September 30.


.I 18134
.C
earn
.W
LIBERTY FINANCIAL GROUP <LFG> REGULAR DIVIDEND.
    HORSHAM, Pa., March 4 -
    Qtly div 12.5 cts vs 12.5 cts in prior qtr
    Payable March 13
    Record February 27


.I 18136
.C
earn
.W
PACTEL <PAC> SEES EARNINGS GROWTH.
    New York, march 4 - Pacific Telesis Group chairman Donald
Guinn told a meeting of security analysts that the company sees
continued earnings growth in 1987 above the 1.08 billion dlrs,
or 5.02 dlrs per share, earned in 1986.
    Guinn also said that capital spending stood at about 1.8
billion dlrs in 1986, and the company expected the figure to
remain flat each year through 1989. He noted that all captial
spending will be internally financed.
    Guinn also told analysts that the company faced some
regulatory uncertainties in ongoing rate cases at its Pacific
Bell operating company.
    In rates hearings before, the California Public Utility
Commission, Guinn said the company faced a potential 76 mln dlr
revenue reduction, and due to ongoing discussions with the
commission, he said the figure might even be greater.
    The company also faces some opposition to a 225 mln dlr
rate hike requested for 1986. Guinn said the commission found
180 mln dlrs of the hike was based on questionable calculations
and assumptions, while 45 mln dlrs might represented unneeded
modernization costs.
    Guinn also said that the company is still studying whether
to join an international consortium that plans to lay a
transpacific telephone cable between the U.S. and Japan.
    "We have not agreed to anything," Guinn said, but added he
would soon recieve a feasibility study on the venture and the
company would make a decision soon on participating.
    Asked by an analyst about the recent recommendation by the
U.S. Department of Justice which would allow the Bell operating
companies to offer limited long distance services, Guinn said
the company would likely shy away from that type of expansion.
    "(Long distance services) is a very competitive business.
It's a commodity business and becoming more so," he said. "I'm
not so sure we would be interested in getting back into that
business."
    However, Guinn generally applauded the U.S.
recommendations, saying they would give more latitude for the
Bell operating companies to expand into non-regulated
businesses and provide more flexibility to form strategic
alliances with other companies.
    He added that while the company welcomes the expansion into
new areas, it is not currently involved in any acqusition
talks. "We do not have anything actively under consideration,"
he said.
   


.I 18137
.C
acq
.W
******TRANS WORLD AIRLINES MAKES 52 DLR/SHARE CASH MERGER PROPOSAL FOR USAIR.
Blah blah blah.

.I 18140
.C
earn
.W
UNICORP AMERICAN CORP <UAC> 4TH QTR NET.
    NEW YORK, March 4 -
    Shr 13 cts vs 70 cts
    Net 1,279,000 vs 7,979,000
    Revs 16.4 mln vs 19.6 mln
    Year
    Shr 89 cts vs 2.43 dlrs
    Net 10.3 mln vs 29.8 mln
    Revs 56.2 mln vs 83.8 mln
    Avg shrs 12.1 mln vs 13.1 mlnm
    NOTE: 1986 year net includes gain 12.9 mln dlrs from sale
of eight real estate properties.


.I 18141
.C
ship
.W
KENYA SIGNS PACT TO ESTABLISH OWN SHIPPING LINE.
    NAIROBI, March 4 - Kenya has signed an agreement with
British and German interests to establish a shipping line that
will handle 40 pct of the country's external trade, sources
close to the deal said.
    The state-owned Kenya Ports Authority, KPA, signed an
agreement with the Hamburg-based shipping line Unimar
Seetransport to establish the Kenya National Shipping line,
with an initial capital of 100 mln shillings, sources said. KPA
will hold 70 pct of the shares in the new company.
    The line will initially charter vessels to operate services
between Mombasa and the main ports of industrial Europe, but
may eventually build or buy its own ships. The sources said it
would aim to carry a large part of Kenya's coffee and tea
exports and oil and fertiliser imports.


.I 18142
.C
money-fx;interest;
.W
NEW BANK RULES TOUGHER THAN NEEDED, DEALERS SAY.
    By Norma Cohen, Reuters
    LONDON, March 4 - U.S. and U.K. bank regulators are asking
banks to set aside more reserves than is necessary to cushion
them against the risks posed by the interest rate and currency
swap transactions they carry, swap dealers said.
    After viewing proposed guidelines released jointly today by
the Bank of England and the Federal Reserve Board, dealers said
that in effect, regulators are asking them to set aside
reserves twice for the same risk.
    Market participants will have 60 days to respond to the
proposals.
    Adoption of stiffer capital requirements is especially
significant in the eurobond markets, which saw new issue volume
of about 183 billion dlrs in 1986 according to figures compiled
by Euromoney magazine. While no firm figures exist, dealers in
eurobonds estimate that 80 pct of all new issues are involved
in some swap arrangement. Separately, the ISDA estimates that
about 300 billion dlrs worth of swap transactions are
outstanding. Kenneth McCormick, co-chairman of the
International Swap Dealers Association (ISDA) and President of
Kleinwort Benson Cross Financing Inc, said that the Association
has no comment and will study the proposals.
    "What they are proposing is really double counting," Patrick
de Saint-Aignan, managing director of swaps for Morgan Stanley
and Co, said. Instead, he argues, banks should either be
required to hold a percentage of the face value -- say one pct
per year to maturity -- or to hold a percentage of the cost of
replacing the contract in the event of a counterparty default.
    "The potential risk factors are very large relative to what
we had expected," said a director at one U.K. merchant bank.
"What they are really doing is asking you to capitalize now --
to borrow money now -- to cushion you against risk you might
have 10 years from now," he added.(Adds title first paragraph).
    Dealers also said they believe that banks not covered by
the agreement, such as those based in Japan, will have a
competitive advantage because they will not have to pass the
costs on to customers.
    Indeed, regulators are apparently also concerned about the
exclusion of other countries from the new requirements. Federal
Reserve Board Governor Martha Seger, following approval of the
proposed guidelines by the Fed, said she is concerned that
Japan was not involved in the U.K.-U.S. effort to draft new
capital rules.
     Dealers said they were somewhat relieved to see that bank
regulators recognized the concept of netting, that is,
offsetting the amounts receiveable from and payable to a single
counterparty against each other.
    The paper said that regulatory authorities "recognize that
such arrangements (netting) may in certain circumstances reduce
credit risk." Furthermore, the paper said, if a netting
agreement could be reached that would withstand legal tests, it
might be willing to reduce capital requirements accordingly.
    But dealers said they fear regulators may insist on an
airtight netting agreement that is impossible to design.
     "One problem is that there has never been a major default
in the swaps market. So we don't know if any of the swap
arrangements will really stand up in court," said one bank
official.


.I 18145
.C
earn
.W
SHAW'S SUPERMARKETS INC <SHAW> YEAR JAN 3.
    EAST BRIDGEWATER, Mass., March 4 -
    Shr 1.23 dlrs vs 1.33 dlrs
    Semi-annual div six cts vs six cts prior payment
    Net 16.2 mln vs 14.8 mln
    Sales 1.09 billion vs 909.4 mln
    NOTE: Dividend is payable April one to holders of record
March nine


.I 18147
.C
acq
.W
DYNAMICS CORP <DYA> IN SETTLEMENT WITH CTS <CTS>.
    GREENWICH, Conn., March 4 - Dynamics Corp of America said
it has reached an agreement with CTS Corp resolving all
differences between the two companies.
    It said as a result of the settlement, CTS's special board
committee has stopped soliciting orders to purchase some or all
of CTS.
    Dynamics, which now owns 27.5 pct of CTS' outstanding
stock, said it agreed to limit its shareholdings to not more
than 35 pct of the outstanding shares for a year following the
company's 1987 annual meeting.
    Dynamics said the CTS board will recommend CTS shareholders
vote at the 1987 annual meeting in favor of the company paying
Dynamics 2,178,000 dlrs as a reimbursement for its CTS releated
costs and granting Dynamics an option to buy enough CTS common
at 29.625 dlrs a share to give it ownership of 35 pct of the
outstanding stock.
    Dynamics said the price of stock under the option,
exercisable for one year, is based on the average closing price
for the stock for the five days ending March two.
    Dynamics said CTS Chairman George F. Sommer will assume the
additional title of President. Former President Robert D.
Hostetler is resigning as a director, as is Chief Financial
Officer Gary B. Erekson, Ted Ross and Donald J. Kacek.
    Dynamics said the CTS board will be reduced to seven
members for eight with the remaining four members of the
current board and three representatives of Dynamics as new
directors.


.I 18149
.C
grain
.W
RENEWAL OF U.S./USSR GRAIN PACT SAID UNCERTAIN.
    WASHINGTON, March 4 - Prospects for renewal of the
five-year U.S./USSR grains agreement are uncertain at this
point, a Soviet trade official told Reuters.
    The current trade imbalance between the United States and
the Soviet Union, high U.S. commodity prices, and increased
world grain production make a renewal of the supply agreement
next year less certain, Albert Melnikov, deputy trade
representative of the Soviet Union, said in an interview.
    The current agreement expires on Sept 30, 1988.
    Melnikov said that world grain markets are different than
when the first agreement was signed in 1975.
    Statements from both U.S. and Soviet officials have
indicate that a long term grains agreement might not be as
attractive for both sides as it once was.
    "We have had one agreement. We have had a second agreement,
but with the second agreement we've had difficulties with
prices," Melnikov said.
    "I cannot give you any forecasts in response to the future
about the agreement.... I do not want to speculate on what will
happen after Sept 30, 1988," he said.
    Melnikov noted that he has seen no indications from Soviet
government officials that they would be pushing for a renewal
of the agreement.
    "The situation is different in comparison to three, five or
ten years ago ... We can produce more," he said.


.I 18150
.C
earn
.W
DANAHER <DHR> EXPECTS EARNINGS INCREASE IN 1987.
    WASHINGTON, March 4 - Danaher Corp said it expects higher
earnings in 1987 versus 1986.
    "We expect significant increases in earnings and revenues
in 1987," Steven Rales, Danaher chairman and chief executive
officer, said.
    Earlier, the company reported 1986 net earnings of 15.4 mln
dlrs, or 1.51 dlrs a share, versus 13.5 mln dlrs, or 1.32 dlrs
a share, in 1985.
    It also reported fourth quarter net of 7.3 mln dlrs, or 71
cts a share, up from 4.4 mln dlrs, or 43 cts a share, in the
previous year's fourth quarter.


.I 18152
.C
earn
.W
DANAHER CORP <DHR> 4TH QTR NET.
    WASHINGTON, March 4 -
    Shr 71 cts vs 43 cts
    Net 7,274,000 vs 4,447,000
    Rev 161.6 mln vs 77.6 mln
    Year
    Shr 1.51 dlrs vs 1.32 dlrs
    Net 15,401,000 vs 13,525,000
    Rev 454.0 mln vs 304.9 mln
    NOTE: Fourth qtr net includes extraordinary gain of 3.8 mln
dlrs, or 37 cts per share, versus 2.9 mln dlrs, or 28 cts a
share, in 1985's fourth qtr, and an extraordinary charge of
642,000 dlrs, or six cts a share. 1986 net includes
extraordinary gain of 7.4 mln dlrs, or 72 cts a share, versus
8.0 mln dlrs, or 78 cts a share, in 1985.


.I 18153
.C
acq
.W
TWA <TWA> MAKES MERGER OFFER FOR USAIR <U>.
    NEW YORK, March 3 - Trans World Airlines said it has
proposed a cash merger of USAir Group with TWA in which the
holders of USAir common would receive 52 dlrs in cash in
exchange for their stock.
    TWA said the offer was made in a letter to Edmin Colodny,
chairman and president of USAir.
    TWA said, however, that if the negotiated deal is not
acceptable it may make an offer directly to USAir's
shareholders for up to 51 pct of USAir's outstanding stock, to
be purchased in a voting trust at a price lower than today's
offer.
    TWA said it is filing an application with the Department of
Transportation seeking approval of the merger as well as an
application for approval, on an expedited basis, of its
purchase of up to 51 pct of USAir common and the deposit of the
stock in a voting trust, pending DOT approval.
    TWA said that in respect to USAir's recent offer for
Piedmont Aviation <PIE> it believes that USAir's shareholders
would prefer a cash merger proposal for USAir over its proposed
acquisition of Piedmont.
    TWA said, however, it also would be interested in
discussing a three way deal among USAir, Piedmont and TWA.
    TWA said the merger is subject to the USAir board redeeming
the preferred stock purchase rights (the poison pill) issued to
shareholders last year and taking action so that the vote of a
majority of the outstanding common stock is required to approve
its proposed move.
    Additionally, TWA said it would need a satisfactory due
diligence review of USAir.
    TWA said it has not yet had an opportunity to obtain the
necessary financing for the deal, but added it is confident
that it will get it.
   


.I 18157
.C
acq
.W
CTS <CTS> AND DYNAMICS <DYA> REACH ACCORD.
    ELKHART, IND., March 4 - CTS Corp and Dynamics Corp of
America reached an agreement resolving all outstanding
differences between them, according to a joint statment.
    As a result of the settlement, a special committee of the
board of directors of CTS stopped soliciting offers to buy all
or part of the company, it said.
    CTS and DCA also agreed to dismiss all pending litigation
between the two companies except for one appeal pending before
the U.S. Supreme Court relating to the Indiana Control Share
Chapter, it said.
    Under the agreement, the CTS board will immediately be
reduced to seven from eight with four current directors and
three representatives of DCA being elected to the board, it
said. This board will be presented as the slate for CTS' 1987
annual shareholders meeting, it added.
    CTS' directors will recommend to shareholders that they
approve reimbursement to DCA of about 2.2 mln dlrs in expenses
relating to CTS, and grant DCA an option to buy up to 35 pct of
CTS' shares, it said.
    In addition, DCA said it agreed to limit its ownership in
CTS for the year following the 1987 annual meeting to not more
than 35 pct of the outstanding stock. DCA currently holds 27.5
pct of the outstanding shares of CTS.
    Both companies said they support the agreement and believe
it to be fair to both sides.
   


.I 18158
.C
acq
.W
MEASUREX <MX> SELLS SOUTH AFRICAN UNIT.
    CUPERTINO, Calif., March 4 - Measurex Corp said it
completed the sale of its Measurex (South Africa Pty)
subsidiary to a group of employees who manage the operation.
    Measurex, a maker of computer integrated manufacturing
systems, said the subsidiary represented less than one pct of
worldwide revenues and the sale will have no impact on this
year's earnings.


.I 18159
.C
acq
.W
JEFFERIES MAKING MARKET IN USAIR <U>.
    NEW YORK, March 4 - Jefferies and Co said it is making a
market in the stock of USAir Group Inc at 48-1/2 to 50.
    USAir received an offer from Trans world airlines to buy
the airline at 52 dlrs cash per share.
    USAir was halted on the New York Stock EXcahnge for
dissemination of the news. It was indicated at 47 to 54.


.I 18165
.C
earn
.W
TRANS-LUX <TLX> SETS FIVE PCT STOCK DIVIDEND.
    NORWALK, Conn., March 4 - Trans-Lux Corp said its board
declared a five pct stock dividend payable April nine to
holders of record March 20.
    The company said directors also declared regular quarterly
dividends on presently outstanding shares of both classes of
common, payable April nine to holders of record March 16.
    It said an unchanged dividend of two cts will be paid on
the common and 1.8 cts on the Class B stock.


.I 18169
.C
earn
.W
KANEB ENERGY PARTNERS LTD <KEP> 4TH QTR LOSS.
    HOUSTON, March 4 -
    Shr loss one cent
    Net loss 186,000
    Revs 10.7 mln
    11 mths
    Shr loss 7.26 dlrs
    Net loss 121.4 mln
    Revs 46.9 mln
    NOTE: In February 1986, Kaneb Services Inc contributed all
of its domestic oil and gas operations to Kaneb Partners, which
was newly formed, and exchanged approximately 3,200,000
depositary units respresenting limited partnership interests in
KEP for approximately 6,400,000 million shares of the
outstanding common stock of Kaneb Servies Inc. Kaneb now owns
approximately 82 pct of KEP.
    During the 11 mths of operation, the partnership wrote down
the carrying value of its oil and gas properties by 124.8 mln
dlrs. The write downs reduced income by 7.46 dlrs per limited
partnership unit.
   


.I 18170
.C
earn
.W
DALTON COMMUNICATIONS INC <DALT> 3RD QTR JAN 31.
    NEW YORK, March 4 -
    Shr profit three cts vs loss two cts
    net profit 157,500 vs loss 60,200
    Revs 1.1 mln vs 1.0 mln
    Nine months
    Shr profit five cts vs profit six cts
    Net profit 223,400 vs profit 260,800
    Revs 3.2 mln vs 3.1 mln


.I 18176
.C
earn
.W
(CORRECTION) - SHAW'S SUPERMARKETS EARNINGS.
    In item headlined "SHAW'S SUPERMARKETS INC <SHAW> YEAR JAN
3" please read per share earnings 1.33 drs vs 1.23 dlrs,
correcting order of results.


.I 18177
.C
earn
.W
WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET.
    PORTLAND, Ore., March 4 -
    Shr profit 13 cts vs loss one ct
    Net profit 853,000 vs loss 22,000
    Sales 41.1 mln vs 20.3 mln
    Avg shrs 6,349,753 vs 4,403,852
    Nine Mths
    Shr profit 57 cts vs profit 28 cts
    Net profit 2,869,000 vs profit 1,252,000
    Sales 119.0 mln vs 67.6 mln
    Avg shrs 5,054,844 vs 4,403,852


.I 18178
.C
acq
.W
HEALTHVEST <HVT> SELLS SHARES.
    AUSTIN, Texas, March 4 - Healthvest, a Maryland real estate
investment trust, said it began selling five mln shares of
common stock at 21 dlrs a share.
    The company said it is also selling 543,237 shares to
Healthcare International Inc <HII>, giving the company a 9.8
pct stake in Healthvest.


.I 18179
.C
orange
.W
CACEX DENIES BRAZIL FCOJ PRICE RISE RUMOURS.
    RIO DE JANEIRO, March 4 - There has been no rise in the
price of Frozen Concentrated Orange Juice, FCOJ, a spokesman
for the Banco do Brasil's Foreign Trade Department, Cacex,
said.
    He was responding to rumours in the international market
that Brazil had raised its FCOJ prices in range of 1,075 to
1,150 dlrs per tonne.


.I 18181
.C
earn
.W
E-SYSTEMS <ESY> SETS QTRLY PAYOUT.
    DALLAS, March 4 -
    Qtrly div 12.5 cts vs 12.5 cts prior
    Pay April 1
    Record March 13


.I 18182
.C
earn
.W
PIEDMONT MANAGEMENT CO INC <PMAN> 4TH QTR.
    NEW YORK, March 4 -
    Shr 70 cts vs 4.91 dlrs
    Net 3.7 mln vs 26.3 mln
    Year
    Shr 1.99 dlrs vs 3.35 dlrs
    Net 10.7 mln vs 18.0 mln
    NOTE:1986 year, 4th qtr include capital gains of 3.5 mln
dlrs and 1.1 mln dlrs, respectively and extraordinary gain of
3.4 mln dlrs and 1.2 mln dlrs respectively. 1985 year and 4th
qtr include capital gains of 24.0 mln dlrs and 23.3 mln dlrs
respectively and extraordinary gain of 3.9 mln dlrs.
        


.I 18183
.C
earn
.W
EASTPARK REALTY TRUST <ERT> 4TH QTR NET.
    JACKSON, Miss., March 4 -
    Shr 1.52 dlrs vs 17 cts
    Net 1,306,000 vs 144,000
    Rev 758,000 vs 670,000
    Year
    Shr 2.68 dlrs vs 2.63 dlrs
    Net 2,313,000 vs 2,285,000
    Rev 2.8 mln vs 2.7 mln
    NOTE: Fourth qtr and 1986 had gains on real estate
investments of 933,000 dlrs, or 1.08 a share, and 970,000 dlrs,
or 1.12 a share, respectively.
    This compares with a loss of 137,000 dlrs, or 15 cts a
share, and again of 1.3 mln dlrs, or 1.45 a share, for the
fourth qtr and year respectively in 1985.


.I 18185
.C
earn
.W
NL INDUSTRIES INC <NL> SETS QTRLY PAYOUT.
    NEW YORK, March 4 -
    Qtrly div five cts vs five cts qtr
    Pay April One
    Record  March 16


.I 18186
.C
earn
.W
WTD INDUSTRIES INC <WTDI> 3RD QTR JAN 31 NET.
    PORTLAND, Ore., March 4 - 
    Shr profit 13 cts vs loss one ct
    Net profit 853,000 vs loss 22,000
    Revs 41.1 mln vs 20.3 mln
    Avg shrs 6,349,753 vs 4,403,852
    Nine mths
    Shr profit 57 cts vs profit 28 cts
    Net profit 2,869,000 vs profit 1,252,000
    Revs 119.0 mln vs 67.6 mln
    Avg shrs 5,054,844 vs 4,403,000
    Note: Company went public in October 1986.


.I 18187
.C
earn
.W
ALASKA AIR GROUP INC <ALK> QTLY DIVIDEND.
    SEATTLE, March 4 -
    Shr four cts vs four cts prior qtr
    Pay May five
    Record April 15


.I 18189
.C
acq
.W
USAIR <U> HAS NO COMMENT ON TWA <TWA> OFFER.
    New York, March 4 - USAir Group Inc said it had no comment
on an offer it received from Trans World Airlines to buy USAir
for 52 dlrs cash per share.
    USAir spokesman David Shipley also declined comment on
Piedmont Aviation Inc <PIE>. USAir has offered 71 dlrs cash per
share for half of Piedmont's stock, and 73 dlrs in its own
stock for the balance.
    Piedmont also received an offer from Norfolk Southern Corp
<NSC> of 65 dlrs cash per share. Piedmont's board was meeting
today, but the company declined to say what was on the agenda.
A spokesman said he could not comment on the twa action.
    A Norfolk Southern Corp <NSC> spokesman said the company
had no comment on TWA's offer for USAir or on its proposal to
negotiate a three-way merger between TWA, USAir and Piedmont.
    "We don't have all the details," a Norfolk Southern
spokesman said. The company's 65 dlr-a-share cash offer for
Piedmont stands, he said.
    In its offer, TWA said as an alternative to a merger with
USAir, it would be interested in discussing a three-way
combination among USAir, Piedmont and TWA. It said the
three-way merger would serve the best interests of the
shareholders of all three companies, employees and consumers.


.I 18190
.C
livestock;carcass;trade;
.W
MORE PRESSURE URGED FOR ASIA TO TAKE U.S. BEEF.
    WASHINGTON, March 4 - Congressmen from beef producing
states and representatives of the U.S. livestock industry 
urged the Reagan administration to press Japan and South Korea
to open up their markets to imports of beef.
    Testifying at a House subcommittee hearing on livestock
issues, Rep. Hal Daub (R-Nebr.), said the administration should
push hard for greater beef imports by Japan and South Korea.
Daub was joined by several other lawmakers.
    U.S. assistant trade representative Suzanne Earley, replied
"we're not going to let Japan off the hook, or Korea." She
noted trade representative Clayton Yeutter met with a senior
Korean official last week on the beef issue, and that Yeutter
and Agriculture Secretary Richard Lyng will visit Tokyo in
April for discussions on farm trade issues.
    Japan maintains a quota on beef imports, set at 58,400
tonnes high quality beef in fiscal 1987. South Korea has banned
beef imports but there are indications Seoul may bow to U.S.
pressure and allow some imports soon, industry officials said.
    In testimony today, Tom Cook, director of industry affairs
for the National Cattlemens Association said "the Congress,
administration and the industry must take a strong, tough and
united stand to impress the Japanese that we mean business and
that we expect them to open their markets."


.I 18191
.C
reserves
.W
SOUTH AFRICAN FOREIGN RESERVES UP SHARPLY IN FEB.
    JOHANNESBURG, March 4 - South Africa's total gold and
foreign assets rose by 700 mln rand in February to 6.2 billion
rand after rising by almost one billion rand in January,
Reserve Bank Governor Gerhard de Kock said.
    De Kock, interviewed on state-run television, gave no
breakdown of the reserves.
    He also said that to curb inflation, salary increases would
have to be below the inflation rate. The state must set an
example by keeping wage increases below the inflation rate, he
said.
    Consumer prices rose by 16.1 pct in the year to January.


.I 18195
.C
wheat;grain;corn;
.W
MORE SOVIET GRAIN BUYING FROM U.S. TIED TO PRICE.
    WASHINGTON, March 4 - Whether the Soviet Union will fulfill
its buying obligations under the U.S./USSR grains agreement
depends entirely on the United States, a Soviet trade official
told Reuters.
    "How can I tell that we are ready to fulfill the agreement
if the United States does not want to offer us grain at
competitive prices?" said Albert Melnikov, deputy trade
representative of the Soviet Union to the United States.
    "We are in the market for grains, but it is up to the
United States to be the seller ... to offer Soviets competitive
prices," he said in an interview.
    Melnikov said that the United States has not lived up the
agreement by failing to make available to Moscow U.S. grain at
prevailing market prices.
    "We are being accused of not implementing this agreement.
We do not consider we are at fault," Melnikov said.
    Article I in the agreement states that "purchases/sales of
commodities under this Agreement will be made at the market
price prevailing for these products at the time of
purchase/sale and in accordance with normal commercial terms."
    "The United States should supply to the Soviet Union
definite quantities of grain at competitive prices ... Is the
United States ready to supply this?" he said.
    The Soviet official said that near-term corn demand has
been met by the recent Soviet purchases of U.S. corn, which he
confirmed at 1.5 mln tonnes, but said that if U.S. corn prices
remain competitive, the Soviets will buy more if they need it.
    Wheat buying, however, is a different story, Melnikov said.
    "If the United States is interested in selling its wheat,
then they must offer competitive prices, and it's up to the
United States to decide how these competitive prices will be
offered," he said.
    Last year's U.S. offer of subsidized wheat to the Soviets
was rejected because of an insufficient subsidy, Melnikov said.
He said that at the time of the 13 dlr per tonne subsidy offer,
U.S. wheat prices were 26 dlrs over world levels.


.I 18201
.C
earn
.W
LEASEWAY TRANSPORTATION CORP <LTC> QTLY DIV.
    CLEVELAND, March 4 - 
    Qtly div 37.5 cts vs 37.5 cts prior
    Pay April eight
    Record March 16


.I 18203
.C
sugar
.W
PERU SUGAR HARVEST SEEN LOWER -- USDA.
    WASHINGTON, March 4 - Sugar production in Peru for the
1986/87 season has been revised to 593,000 tonnes (raw value),
down 10 pct from the previous forecast and 21 pct below the
1985/86 harvest, the U.S. Agriculture Department said in its
World Production and Trade Report.
    It said while rains in the northern mountain region are
improving the supply of irrigation water, the major benefits
will not occur until the 1987/88 season.


.I 18205
.C
acq
.W
ITEL <ITEL> GETS FINANCING FOR ANIXTER BUY.
    NEW YORK, March 4 - Itel Corp said it obtained commitments
from a syndicate of banks for a six-year secured loan of about
325 mln dlrs and had separately filed registration statements
for two public offerings for a total of 150 mln dlrs to fund
its December 1986 acquisition of <Anixter Bros Inc>.
    It said one of the offerings will be a new 75 mln dlrs
issue of convertible exchangeable series C preferred and the
other will be a 75 mln dlr issue of seven-year senior
subordinated notes. Both offerings will be through Merrill
Lynch Capital Markets.
    It said a portion of the proceeds from the offerings,
together with the proceeds form the new bank loan, wll be used
to repay the 395 mln dlr bridge loan Merrill Lynch and Co Inc
<MER> provided for Itel to buy Anixter.
    Itel said the banks it obtained commitments from include
Manufacturers Hanover Trust Co <MHC>, <Chemical Bank of New
<York>, and the <First National Bank of Chicago>.


.I 18207
.C
acq
.W
GREAT AMERICAN <GTA> GAINS OVER 80 MLN IN LOANS.
    NEW YORK, March 4 - Great American First Savings Bank said
the bank recorded gains exceeding 80 mln dlrs on sales of loans
and mortgage securities valued at 1.1 billion dlrs.
    The San Diego-based bank said in a prepared release of its
report to analysts here that the gains included 6.6 mln dlrs in
arbitrage profits from the premium paid for the separation of
interest and principal components of new Federal National
Mortgage Association strip securities.
    The bank said it reported a profit of more than 20 mln dlrs
on the transaction, involving 390 mln dlrs of FNMA securities,
including the arbitrage gain.
    Great American recently announced plans to acquire <Capital
Savings Bank>, Olympia, Wash., and last year acquired <Home
Federal Savings and Loan Association>, Tucson, Ariz., and <Los
Angeles Federal Savings Bank>, which resulted in 66 new offices
and three billion dlrs in assets.
    The bank also said it plans to expand into other major
western banking markets and is considering an acquisition in
Colorado.


.I 18208
.C
acq
.W
TANDY BRANDS <TAB> SELLS UNIT.
    FORT WORTH, Texas, March 4 - Tandy Brands Inc said it sold
its Grate Home and Fireplace division to an investor group that
includes some members of Grate's management for 1,600,000 dlrs
in cash and secured notes.
    The company said the sale will not materially offset the
9,848,000 dlr non-recurring charge it took against the sale of
the division.


.I 18210
.C
oilseed;wheat;grain;soybean;
.W
AMERICAN FARM BUREAU OPPOSES FARM BILL CHANGES.
    CHICAGO, March 4 - The directors of the American Farm
Bureau, the nation's largest farm organization, voted Tuesday
to urge Congress to leave the 1985 farm bill in place without
alterations.
    "We are solidly opposed to opening up the 1985 farm bill,"
said Dean Kleckner, president. "The current farm bill has been
in place for just a little over a year and in our judgment
there is more to be gained at the present time from maintaining
the legislation.
    "Several independent studies ... indicate the 1985 farm
bill is better on balance than any of the alternatives being
advanced," Kleckner said.
    The Farm Bureau also urged Agriculture Secretary Richard
Lyng to adjust the loan rate for 1987 crop soybeans as much as
he deems possible under the farm bill to keep soybeans
competitive in the world market.
    A Farm Bureau proposal suggests that producers should be
eligible for supplemental payments in the form of PIK
certificates for the difference between 5.02 dlrs a bushel and
the new loan rate.
    The organization also urged Lyng to authorize deficiency
payments to farmers who were unable to plant 1987 winter wheat
because of adverse weather.


.I 18212
.C
earn
.W
BROWING-FERRIS <BFI> DECLARES 2-FOR-1 SPLIT.
    HOUSTON, March 4 - Browning-Ferris Industires Inc said its
board declared a two-for-one stock split payable April 24 to
holders of record March 31.
     


.I 18215
.C
earn
.W
PENNWALT CORP <PSM> QTLY DIVIDEND.
    PHILADELPHIA, March 4 -
    Qtly div 55 cts vs 55 cts prior
    Payable May one
    Record April three


.I 18216
.C
acq
.W
BANNER INDUSTRIES INC <BNR> COMPLETES PURCHASE.
    NEW YORK, March 4 - Banner Industries Inc said it completed
the purchase of all Rexnord Inc <REX> common shares for its
26.25 dlrs per share cash tender offer that ended Feb
27, 1987.
    The purchase follows Banner receiving earlier today 310 mln
dlrs under a credit agreement with Citicorp Industries Credit
Inc and the Bank of Nova Scotia, and an additional 260 mln dlrs
from offerings made for Banner and its subsidiary through
Drexel Burnham and Lambert.
    As a result of the tender offer, Banner said it will own
approximately 96 pct of the outstanding shares of Rexnord. The
company said a merger of Rexnord and a subsidiary of Banner
will be completed before mid-May.


.I 18217
.C
crude
.W
******MURPHY RAISES CRUDE OIL POSTED PRICES ONE DLR/BBL. WTI TO 17.00 DLRS TODAY.
Blah blah blah.

.I 18219
.C
acq
.W
PHOENIX STEEL RECEIVES OFFER FOR CLAYMONT MILL.
    CLAYMONT, Del., March 4 - <Phoenix Steel Corp> said a group
of investors offered to buy its Clayton steel plate mill for
eight mln dlrs and the assumption of a bond obligation.
   Phoenix did not disclose the indentity of the investors.
    Phoenix was forced to close the Clayton mill last month.
    The company said the offer represents a major step in
restructuring the company.


.I 18221
.C
earn
.W
KEANE INC <KEAN> 4TH QTR.
    BOSTON, Mass., march 4 -
    Shr 17 cts vs 15 cts
    Net 229,000 vs 201,000
    revs 10.5 mln vs 9.9 mln
    Year
    Shr 21 cts vs 55 cts
    Net 283,000 vs 766,000
    Revs 40.4 mn vs 39.7 mln
    NOTE:1985 shares adjusted to reflect the distribution of
one share of Class B common stock for every two shares of
common stock held of record as of July 1, 1986.


.I 18227
.C
trade
.W
BRITISH AIDE CRITICIZES U.S.PROTECTIONISM.
    WASHINGTON, March 4 - A senior British official said that
protectionist bills being considered by Congress could trigger
retaliation by the European Community (EEC) and threaten the
global trading system.
    Paul Channon, secretary for trade and industry, said if
Congress passed legislation to curb textile imports, which
would hit EC shipments as well as shipments from major Asian
textile producers, "the community would have to retaliate."
    His comments echoed those made yesterday by Belgian Trade
Minister Herman De Croo, who said if the bill passed, the
community would retaliate by imposing taxes on U.S. exports.
    Channon made his remarks at a news conference after two
days of talks with Reagan Administration officials and members
of Congress.
    De Croo was also in Washington for trade talks.
    Channon said there was a greater protectionism sentiment in
Congress since his visit here last year as Congress and the
Administration tried to find ways to reduce the U.S. trade
deficit, which last year hit a record 169.8 billion dlrs.
    Channon also called for greater EC-U.S. cooperation to
force Japan to open its markets to foreign goods.
    Channon said Japan's trade surplus is causing everyone
problems - its surplus with the United States last year was
51.5 billion dlrs and with EC nations, 16.7 billion dlrs.
    "The more united pressure there could be, the better," he
said.
    Channon also called for increased U.S.-EC cooperation to
avoid trade disputes.
    He said the two sides narrowly avoided a confrontation
earlier this year over lost grains sales when Spain and
Portugal joined the community and its liberal imports
regulations were tightened to conform to EC standards.
    "But if both sides drew back from the brink that time," he
said, ""it does not mean that they would do so on another
occasion."
    Channon added that "There is increasing reesentment in
Europe over the U.S. tactic of negotiating under the pressure
of unilaterally imposed deadlines."
    He said other potential conflicts are already in sight -
alleged European government subsidies of Airbus aircraft and
taxes on fats and oils - and "the commuity and the United States
must therefore learn to manage their relations better."
    He said another bill to let the United States retaliate
against a nation if that nation's market was not open to U.S.
goods would bypass the trade pact GATT (General Agreeeement on
Tariffs and Trade) as an arbiter of trade practices.
    He said foreign trade law should be judged by GATT and not
by the United States, adding "if the (trade) law is to be
interpreted by the United States and not by the GATT, what is
to happen to the rest of us?"
   


.I 18228
.C
money-fx;trade;
.W
YEUTTER SEEKS STRONGER TAIWAN, S.KOREA CURRENCIES.
    WASHINGTON, March 4 - U.S. Trade Representative Clayton
Yeutter said he hoped the U.S. dollar would continue to decline
in relation to the currencies of Taiwan and South Korea as a
way to improve the U.S. trade picture.
    Testifying before the House Appropriations subcommittee
which must approve his agency's 1988 budget, he said, "In my
judgment economic factors justify a continued decline."
    Asked by a committee member if he expected a further
decline, and how much, Yeutter said the Taiwan and South Korean
currencies should be adjusted to reflect "positive factors" in
their economies.


.I 18231
.C
earn
.W
NL INDUSTRIES INC <NL> SET REGULAR PAYOUT.
    NEW YORK, March 4 - 
    Qtly div five cts vs five cts prior
    Pay March 31
    Record March 16


.I 18232
.C
sugar
.W
CHINA SUGAR OUTPUT SEEN LOWER -- USDA.
    WASHINGTON, March 4 - China's 1986/87 sugar crop has been
revised to 5.26 mln tonnes (raw value), down four pct from the
previous forecast and five pct below the previous season, the
U.S. Agriculture Department said.
    In its World Production and Trade Report, the department
attributed the decline to relatively poor profitability of
sugar, causing harvested area of cane and beets to decline
seven pct from 1985/86.
    Beet sugar production for 1986/87 is now estimated at
837,000 tonnes, five pct less than earlier forecast and down
five pct from the previous season, while cane output is
projected at 4.423 mln tonnes, down four pct from previously
forecast and five pct below the previous season, it said.


.I 18233
.C
earn
.W
GENERAL HOST <GH> SEES YEAR LOSS.
    STAMFORD, Conn., March 4 - General Host Corp said it will
report a loss from continuing operations and a sharp decline in
net income for the year ended January 25, 1987, due to
substantial operating losses in its Frank's Nursery and Crafts
unit. For the year ended January 25, 1986, General reported net
income of 29.7 mln dlrs.
    The company said it discovered problems in its unit's
computerized accounts payable system. It said results of its
other nursery and craft unit, Flower Time Inc, are not
affected. It said its accountants are investigating the
problem, which will delay release of its full-year results.


.I 18237
.C
earn
.W
MEDTRONIC INC <MDT> SETS PAYOUT.
    MINNEAPOLIS, March 4 - 
    Qtly dividend 22 cts vs 22 cts
    Pay April 30
    Record April 10


.I 18241
.C
earn
.W
LOUISVILLE GAS AND ELECTRIC CO <LOU> DIVIDEND.
    LOUISVILLE, Ky., March 4 -
    Qtly dividend 65 cts vs 65 cts
    Pay April 15
    Record March 31


.I 18249
.C
alum
.W
KAISER ALUMINUM <KLU> RAISES PRODUCT PRICES.
    OAKLAND, Calif., March 4 - Kaiser Aluminum and Chemical
Corp said it is increasing prices for a broad range of common
alloy coil, flat sheet and plate products.
    The company said prices to distributors and direct
customers on shipments of new orders placed March 4 and after
will be increased by four to eight cts per lb.
    Kaiser said the increases are due to increased demand and
the need to set prices relative to the cost of primary
aluminum.


.I 18252
.C
acq
.W
ROBERTSON UPS CAPITAL WIRE<CWCC> STAKE TO 12 PCT.
    WASHINGTON, March 4 - New York investor Julian Robertson
and several investment partnerships he controls said they
raised their stake in Capital Wire and Cable Corp to 481,800
shares, or 12.2 pct of the total, from 430,200, or 10.9 pct.
    In a filing with the Securities and Exchange Commission
Robertson and his Tiger, Jaguar, Puma and Tiger Management Co
entities said they bought 51,600 Capital Wire common shares
between Feb 3 and 17 at 13.25 dlrs a share.
    Robertson said his group has spent a total of 5.9 mln dlrs
on its investment in the company so far.


.I 18253
.C
acq
.W
TWA <TWA> TANGLES PIEDMONT <PIE> SITUATION.
    By Patti Domm, Reuters
    New York, March 4 - Trans World Airlines Inc complicated
the bidding for Piedmont Aviation Inc by offering either to buy
Piedmont suitor USAir Group or, alternatively, to merge with
Piedmont and USAir.
    Piedmont's board was meeting today, and Wall Street
speculated the board was discussing opposing bids from Norfolk
Southern Corp and USAir. The TWA offer was announced shortly
after the Piedmont board meeting was scheduled to begin.
    TWA offered to buy USAir for 52 dlrs cash per share. It
also said it was the largest shareholder of USAir and
threatened to go directly to USAir shareholders with an offer
for 51 pct of the stock at a lower price.
    TWA also said it believed its offer was a better deal for
USAir shareholders than an acquisition of Piedmont, but it said
it alternatively would discuss a three-way combination of the
airlines.
    Market sources and analysts speculated that TWA chairman
Carl Icahn made the offer in order to put his own airline into
the takeover arena.
    "We're just wondering if he's not just trying to get TWA
into play. There's speculation on the street he just wants to
move onto somthing else," said one arbitrager. "We think TWA
might just be putting up a trial balloon."
    Analysts said the offer must be taken seriously by USAir,
but that the airline will probably reject it because the price
is relatively low compared to other airline deals.
    They also said Icahn must prove his offer credible by
revealing financing arrangements. "They need to show their
commitment and their ability to finance. I think it's a
credible offer," said Timothy Pettee, a Bear Stearns analyst.
    "I think it's certainly on the low end of relative values
of airline deals," said Pettee. Pettee estimated 58 dlrs would
be in a more reasonable range based on other airline mergers.
    USAir stock soared after TWA made public its offer. A
spokesman for USAir declined comment, and said USAir had not
changed its offer for Piedmont. USAir offered of buy 50 pct of
that airline's stock for 71 dlrs cash per share and the balance
for 73 dlrs per share in USAir stock.
    USAir closed up 5-3/8 at 49-1/8 on volume of 1.9 mln
shares.
    Piedmont, which slipped 1/2 to close at 69-5/8, also
remained silent on the TWA action. Piedmont has an outstanding
65 dlr cash per share offer from Norfolk Southern Corp.
    Norfolk Southern declined comment, but said it stuck with
its offer for Piedmont. Norfolk owns about 20 pct of Piedmont
and opened the bidding when it said it would propose a takeover
of Piedmont.
    Some analysts said Icahn may be trying to acquire USAir to
make his own airline a more attractive takeover target.
    "Icahn I think had wanted to sell his airline and there
were no takers. I think the strategy might have called for
making his investment more attractive. One way to accomplish
that specific objective is to go out and acquire other
airlines," said Andrew Kim of Eberstadt Fleming.
    "I don't know whose going to buy them, but at least this
way it becomes a much more viable package," said Kim.
    But Icahn's financing ability for such a transaction
remains in doubt, in part because of TWA's heavy debt load.
    Wall street sources said TWA has some cash with which to do
the offer.
    The sources said Icahn has not lined up outside financial
advisers and plans to make his own arrangements.
   Icahn earlier this year abandoned plans to buy USX Corp <X>
and still retains 11 pct of that company's stock.
    Some Wall street sources said the financier's USX plan was
impacted by the cloud hanging over his adviser, Drexel Burnham
Lambert Inc, because of Wall Street's insider trading scandal.
    Industry sources also predicted USAir might reject the TWA
offer on price and financing concerns. "It's littered with
contingencies and it doesn't even have a financing
arrangement," said one executive at another major airline.
    But the executive conceded a merged TWA-USAir would be a
strong contender with USAir's east coast route system and
planned west coast presence from PSA. USAir could feed the
intenrational flights of TWA, which has a midwest presence in
its St. Louis hub. Adding Piedmont, dominant in the southeast,
to the mix would develop an even stronger force.
    The combined entity would also have TWA's pars reservation
system.
    Such a merger would be complex and analysts said it would
result in an airline iwth an 18 pct market share.
   


.I 18254
.C
earn
.W
FOREST OIL CORP <FOIL> 4TH QTR.
    DENVER, March 4 -
    Shr loss 29 cts vs profit eight cts
    Net loss 2.0 mln vs profit 568,000
    year
    Shr loss 1.37 dlrs vs profit 88 cts
    Net loss 9.3 mln vs profit 6.0 mln


.I 18256
.C
trade
.W
YEUTTER PLANS TRADE TRIP TO CHINA THIS SUMMER.
    WASHINGTON, March 4 - U.S. Trade Representative Clayton
Yeutter said he plans a July trip to China to discuss trade
issues including China's admission to the General Agreements on
Tariffs and Trade.
    Yeutter told a congressional hearing it was possible China
could be a member of GATT before the end of the year.
    "They are making major moves to becoming a full scale member
of the world economy," he told the House Appropriations
subcommittee which oversees his agency's budget.
    Depending on how the negotiations go on the terms of
China's GATT membership, Yeutter said he could put the final
touches on the U.S. part of the agreement during his trip.    
The admission of China to GATT, which is the multinational
group of nations which negotiates international rules on trade,
would offer both potential export markets and potential
competition for U.S. industries, he said.
    "That has a lot of potential as well as risks for U.S.
business," Yeutter said.
    "I think China will develop into a fine market for us," he
added.


.I 18259
.C
coffee
.W
RIO COFFEE TRADE PREFERS NO PACT TO QUOTA CUT.
    RIO DE JANEIRO, March 4 - The failure of talks to introduce
new coffee export quotas within the International Coffee
Agreement, ICA, was preferable to the alternative of Brazil
having a sharply reduced quota, as had been proposed, President
of the Rio de Janeiro Coffee Trade Association Carlos Calmon
said.
    He told Reuters proposals to reduce Brazil's quota to 25
pct of the world share from 30 pct at present were unacceptable
as the country has large stocks and a good harvest is expected.
    "Brazil has the capacity to export 20 mln bags this year,"
Calmon added.
    Calmon said, assuming a 58 mln bag global ICA quota,
Brazil's share under the proposals would have been 14.5 mln
bags, of which soluble would have accounted for 2.0 mln,
leaving just 12.5 mln bags of green coffee for export.
    "It's a pity the talks broke down, but for Brazil this was
better than such a quota reduction," he added.
    In 1985 Brazil exported 19.6 mln bags of soluble and green
coffee, including about two mln bags to non-members. A severe
drought and marketing problems cut exports last year to under
10 mln bags.
    Calmon estimated stocks as of January 1 at 18 mln bags, of
which 5.0 mln have already been sold for export. The harvest
this year should be around 30 mln bags, he added.
    The latest Brazilian Coffee Institute estimate for last
year's harvest is 11.2 mln bags, although many traders believe
it was higher than this.


.I 18260
.C
grain;corn;sorghum;
.W
ISRAEL TENDERS TONIGHT FOR CORN AND/OR SORGHUM.
    KANSAS CITY, March 4 - Israel will tender overnight for
33,000 long tons of U.S. sorghum and/or 22,000 long tons of
U.S. corn for April shipment, private export sources said.


.I 18262
.C
acq
.W
VIACOM <VIA> MERGER EXPECTED IN 60 TO 90 DAYS.
    By Cal Mankowski, Reuters
    NEW YORK, March 4 - Sumner Redstone, president of National
Amusements, Inc, predicted he can win regulatory approvals to
wrap up the 3.4 billion dlr acquisition of Viacom International
Inc in 60 to 90 days.
    Redstone, 63, catapulted himself into the big leagues of
entertainment early today when a group of Viacom managers and
their financial backers decided not to top National's bid.
    "We've had counsel working for some time in every region
where Viacom has cable televison systems" Redstone told Reuters
in a telephone interview.
    Redstone also said "Viacom is committed to working very
closely with us to obtain approvals." Viacom has been seeking
approvals for transfer of its broadcast licenses and cable
systems since September when its management group first
advanced a buyout plan.
    But Redstone turned the situation into a spirited bidding
contest which was capped by the announcement this morning that
Viacom's independent directors on behalf of Viacom entered into
a defintive merger agreement with National.
    National is a family business which operates a chain of
movie theaters. It is dwarfed by Viacom.
    Redstone said he was weary after talks dragged on through
the night but also excited at the prospect of running a leading
electronic media company. He noted that the number of motion
picture admissions in the U.S. has shown no growth in 15 years.
    Of nine satellite television channels operated by Viacom,
four are motion-picture oriented pay channels. Redstone said
exclusive contracts with pay television networks are the
emerging trend. "Up until recently you could see any motion
picture on any pay channel," Redstone said.
    He noted Viacom has exclusive agreements with two studios
and plans to sign a deal with a third company next month.
    Redstone said the management group's investment bankers
will be paid what is due for termination of its merger
agreement. Such fees could total about 30 mln dlrs. "That will
be a company expense," Redstone said.
    He said BankAmerica <BAC> Corp has had numerous inquiries
from lenders who want to participate in a 2.25 billion dlr
financing for the deal. BankAmerica will provide 592 mln dlrs.
    After the merger, Viacom will be a subsidiary of National
but 17 pct of the company will be in public hands.


.I 18263
.C
grain
.W
U.S. CABINET COUNCIL SET TO MULL FARM ISSUES.
    WASHINGTON, March 4 - The Reagan administration's
cabinet-level Economic Policy Council is scheduled to meet
Friday to discuss, among other issues, the status of
agricultural legislation, administration officials said.
    The officials said discussion of a U.S. Agriculture
Department wheat export subsidy to the Soviet Union was not on
the agenda. Matters not on the agenda, however, can be brought
before the council, the officials said.
    Grain trade officials have speculated that USDA would make
a wheat export enhancement offer to Moscow, but USDA officials
have said the matter is not under active consideration.
    USDA today transmitted to Congress a package of legislative
proposals, including bills that would cut target prices and
speed up loan rate reductions.


.I 18264
.C
earn
.W
UNICORP AMERICAN CORP <UAC> 4TH QTR NET.
    NEW YORK, March 4 - 
    Shr 13 cts vs 70 cts
    Net 1,538,000 vs 8,614,000
    Revs 16.4 mln vs 19.6 mln
    12 mths
    Shr 89 cts vs 2.43 dlrs
    Net 10.3 mln vs 29.8 mln
    Revs 56.2 mln vs 83.8 mln
    Note: 1986 net is before preferred dividend payments and
includes after-tax gain from sale of real estate properties of
12.9 mln dlrs.


.I 18265
.C
acq
.W
BANNER <BNR> COMPLETES REXNORD SHARE PURCHASE.
    NEW YORK, March 4 - Banner Industries Inc said it completed
the previously announced purchase of Rexnord Inc <REX>. It said
it owns 96 pct of Rexnord's outstanding following the purchase
of all Rexnord's common validly tendered pursuant to its 26.25
dlr per share cash tender offer ended February 27.
    Banner also said it received 310 mln dlrs pursuant to a
credit agreement with <Citicorp Industrial Credit Inc> and the
<Bank of Nova Scotia> and 260 mln dlrs from an offering made
through Drexel Burnham Lambert Inc.
    The merger of Rexnord with a subsidiary of Banner will be
copmleted before mid-May, the company said.


.I 18266
.C
veg-oil
.W
U.S. REAFFIRMS OPPOSITION TO EC OILS TAX PLAN.
    WASHINGTON, March 4 - A meeting among government agencies
today reaffirmed the strong opposition of the United States to
a proposed new tax on vegetable oils and fats in the European
Community, U.S. trade officials said.
    Representatives of the major government agencies agreed at
a trade policy review group meeting, which includes officials
of the deputy secretary rank, to continue diplomatic pressure
on EC member states.
    "We (all agencies) are together on this," said one U.S.
trade official.
    One source said the U.S. would continue to make clear to
member states and to the EC commission that if Brussels
proceeds with the vegetable oils tax "there will be a great
cost."
    U.S. officials said no formal list of European products on
which the U.S. might retaliate, has yet been drawn up.
    "I don't think we're at that point yet," said one trade
official, adding that the EC has only begun deliberations on
its farm price package.
    Suzanne Early, assistant trade representative, told Reuters
the interagency meeting was to discuss U.S. strategy on the
vegetable oils issue. Asked about retaliation, she said
"sometimes its better not to be specific."
    U.S. trade representative Clayton Yeutter Monday warned
another major transatlantic trade row will develop if the EC
proceeds with the vegetable oils tax.


.I 18267
.C
earn
.W
<CCL INDUSTRIES INC> 4TH QTR NET.
    TORONTO, March 4 -
    Shr 15 cts vs 18 cts
    Net 4,500,000 vs 5,300,000
    Revs 156.7 mln vs 152.0 mln
    YEAR
    Shr 72 cts vs 1.11 dlrs
    Net 21.7 mln vs 33.0 mln
    Revs 695.4 mln vs 653.5 mln
    Note: Shr profit relates to class B non-voting shares.


.I 18269
.C
gas;crude;
.W
******EIA SAYS DISTILLATE STOCKS OFF 3.4 MLN BBLS, GASOLINE OFF 100,000, CRUDE UP 3.2 MLN.
Blah blah blah.

.I 18271
.C
earn
.W
(G.T.C. TRANSCONTINENTAL GROUP LTD) 1ST QTR NET.
    MONTREAL, March 4 -
    Shr 11 cts vs nine cts
    Net 2.1 mln vs 1.6 mln
    Revs 60.8 mln vs 32.9 mln
    Avg shrs 19.7 mln vs 17.2 mln
    Note: period ended January 31.
REUTER


.I 18273
.C
acq
.W
******PIEDMONT AVIATION RECESSES MEETING WITHOUT TAKING ACTION ON MERGER PROPOSALS.
Blah blah blah.

.I 18274
.C
gas;crude;fuel;
.W
EIA SAYS DISTILLATE, GAS STOCKS OFF IN WEEK.
    WASHINGTON, March 4 - Distillate fuel stocks held in
primary storage fell by 3.4 mln barrels in the week ended Feb
27 to 128.4 mln barrels, the Energy Information Administration
(EIA) said.
    In its weekly petroleum status report, the Department of
Energy agency said gasoline stocks were off 100,000 barrels in
the week to 251.5 mln barrels and refinery crude oil stocks
were up 3.2 mln barrels to 333.0 mln.
    The EIA said residual fuel stocks fell 2.2 mln barrels to
37.9 mln barrels and crude oil stocks in the Strategic
Petroleum Reserve (SPR) were up 700,000 barrels to 516.5 mln.
    The total of all crude, refined product and SPR stocks were
unchanged at 1,575.1 mln barrels, it said.


.I 18276
.C
gnp
.W
CANADA CENTRAL BANK HEAD SEES MODERATE GROWTH.
    OTTAWA, March 4 - Bank of Canada Governor John Crow said he
expects the Canadian economy will grow moderately in the coming
year, despite the near flat growth in the final quarter of
1986.
    "We see moderate growth," Crow told a news conference
following presentation of the central bank's annual report in
the House of Commons today.
    He said there were positive signs of growth in the economy,
particularly the drawdown of business inventories in the fourth
quarter. Yesterday, Statistics Canada reported gross domestic
product expanded a slight 0.2 pct in the quarter.
    Crow reiterated the bank's previous statements that
inflation remains a major priority in setting monetary policy
and said only zero inflation would be acceptable. Canada's
inflation rate is currently hovering around the four pct mark.
    The governor said Canada's banking system remains sound
despite recent concern about exposure by the country's banks in
debt plagued countries such as Brazil.
    "It (the debt problem) is not a happy development but I
think it can be overplayed in terms of its impact," Crow told
reporters.


.I 18278
.C
earn;acq;
.W
ALLIS-CHALMERS <AH> PROPOSES RESTRUCTURING.
    MILWAUKEE, March 4 - Allis-Chalmers Corp said it asked
lenders and other groups to approve a restructuring plan that
would cause a dilution of the company's existing common stock.
    The company said it would sell all of its businesses other
than the American Air Filter business, make a public financing
of more than 100 mln dlrs and pay part of the currently
outstanding debt with the proceeds.
    Under the plan, which was presented to institutional
lenders, the company's unions and the Pension Benefit Guaranty
Corp, "substantial amounts" of institutional debt would be
converted to common stock of the restructured company.
    Allis-Chalmers said it will exchange existing preferred
stock for common. The exchange of the institutional debt and
preferred stock for common equity will cause a "resulting
dilution of the existing common stock," Allis-Chalmers said in
a statement.
    Under the plan, holders of existing common would hold about
15 pct of the restructured common stock. Holders of existing
preferred would hold about 35 pct of the new common.
    Allis-Chalmers said its only alternative to the plan is
bankruptcy. The restructuring must be approved by creditors,
common and preferred holders,and present and former employees.
    Allis-Chalmers said a bankruptcy filing "appears to
represent the company's only alternative if agreement upon the
terms of the plan cannot be reached."
    The spokesman said in response to an inquiry that he was
not aware of any extraordinary charge against earnings that
would result from the restructuring.
    "It is too early to talk about a charge" because the plan
must still be approved by the lenders and unions, he said.
    Also under the plan, payments to Allis-Chalmers' private
lenders would be deferred. Trade payables and obligations
incurred in the ordinary course of business will be met.
    Payment of health benefits for active and retired employees
would be made "at substantially reduced levels."
    Allis-Chalmers, once one of the leading farm equipment
companies, sold all of its farm equipment operations to Deutz
of West Germany for 107 mln dlrs, leaving the company with
businesses in lift trucks, air conditioning, fluids handling
and solid materials processing.
    Last year, Allis-Chalmers sold the lift truck business to
AC Material Handling Co of Columbus, Ohio.
    Under the restructuring plan, Allis-Chalmers will sell its
solid materials processing and fluids handling businesses.
Solid materials processing, which makes equipment to crush
stones for highway construction, accounted for 288 mln dlrs of
Allis-Chalmers's total 1985 revenues of 886 mln dlrs.
    The company will also sell its fluids handling operations,
which makes pumps and valves. That business accounted for 196
mln dlrs of the company's 1985 revenues.
    Allis-Chalmers in 1986 reported a net loss of 8.6 mln dlrs,
or 1.09 dlrs a share. In 1985, the company lost 168.4 mln dlrs,
or 12.27 dlrs a share.
    The company's last profit was in 1980, when it earned 52.4
mln dlrs on sales of 2.1 billion dlrs.
   


.I 18279
.C
earn
.W
AMVESTORS FINANCIAL CORP <AVFC> 4TH QTR NET.
    TOPEKA, Kansas, March 4 -
    Oper shr profit 11 cts vs loss 27 cts
    Oper net profit 662,625 vs loss 774,002
    Revs 43.9 mln vs 18.4 mln
    Year
    Oper shr profit 37 cts vs loss 37 cts
    Oper net profit 1,487,796 vs loss 1,119,626
    Revs 150.1 mln vs 51.7 mln
    NOTE: 1986 4th qtr and yr oper net excludes 6,134 dlrs and
720,500 dlrs or 20 cts per share, respectively, for realized
investment gains.
    1986 qtr and yr oper net also excludes 102,300 dlrs and
257,300 dlrs, respectively, for tax loss carryforwards.
    1985 4th qtr and yr oper net excludes realized investment
gains of 449,920 dlrs or 15 cts per share and 897,949 dlrs or
30 cts per share, respectively.
    1985 4th qtr oper net also excludes a loss of 42,820 dlrs
for carryforward.


.I 18280
.C
acq
.W
PIEDMONT <PIE> TAKES NO ACTION.
    WINSTON-SALEM, N.C., March 4 - Piedmont Aviation Inc said
its board meeting recessed today without taking action on
proposals to combine Piedmont with other corporations.
    Piedmont has received opposing bids from Norfolk Southern
Corp and US Air Corp.
    Earlier today, Trans World Airlines Inc offered to either
buy Piedmont suitor US Air or, alternatively, to merge with
Piedmont and U.S. Air.
    IN a prepared statement, Piedmont said there would be no
further announcements concerning this situation today.
    The company declined to say when the board would meet
again.
   


.I 18281
.C
trade
.W
YEUTTER CONCERNED ABOUT U.S. EXPORT PICTURE.
    WASHINGTON, March 4 - U.S. Trade Representative Clayton
Yeutter said he expects imports to fall soon but he was
concerned about the lack of improvement in U.S. exports given
the dollar's decline in the last 18 months.
    "I'm convinced we're about to see an improvement on the
import side. I'm more concerned about the export side," he told
a House Appropriations subcommittee.
    Part of the blame goes on other countries which have not
generated the economic growth to increase demand for U.S. goods
and part to some U.S. companies which are not generating
competitive exports, he said.


.I 18289
.C
trade
.W
HOUSE TRADE BILL DRAFTING POSTPONED.
    WASHINGTON, March 4 - The House Ways and Means trade
subcommittee postponed until next week its opening session to
start drafting major changes to U.S. trade laws, a committee
aide said.
    The subcommittee had not yet completed the preparatory work
to start writing the legislation, the aide said.


.I 18290
.C
earn
.W
<LUMONICS INC> YEAR LOSS.
    KANATA, Ontario, March 4 -
    Oper shr loss 20 cts vs profit 66 cts
    Oper net loss 1,995,000 vs profit 5,820,000
    Revs 65.2 mln vs 53.0 mln
    Avg shrs 9,891,000 vs 8,811,000
    Note: 1986 loss excludes extraordinary loss of 2,413,000
dlrs or 25 cts shr including corporate reorganization,
discontinuing of U.S. operations and inventory writedown of
U.S. subsidiaries vs yr-ago loss of 3,140,000 dlrs or 36 cts
shr.


.I 18291
.C
earn
.W
HCC INDUSTRIES <HCCI> QUARTERLY DIVIDEND.
    ENCINO, Calif., March 4 -
    Qtly div three cts vs three cts
    Pay March 27
    Record March 16


.I 18293
.C
crude
.W
SOUTHLAND <SLC> UNIT RAISES CRUDE PRICES.
    NEW YORK, March 4 - Southland Corp's Citgo Petrleum Corp
said it raised the contract price it will pay for all grades of
crude oil by one dlr a barrel, effective today.
    The increase brings Citgo's posted price for West Texas
Intermediate to 17.00 dlrs a bbl. West Texas Sour is also now
priced at 17.00 dlrs/bbl, and Light Louisiana South is posted
at 17.35 dlrs/bbl.
    On February 25 Citgo lowered its crude postings 50 cts to
1.50 dlrs per bbl, and cut WTI one dlr to 16.00.
    


.I 18295
.C
earn
.W
<WESTERN SECURITY BANK> 4TH QTR NET.
    TOLUCA LAKE, Calif., March 4 -
    Shr profit ten cts vs loss six cts
    Net profit 43,000 vs loss 26,000
    Year
    Shr profit 46 cts vs profit 12 cts
    Net profit 193,294 vs profit 51,029
    Assets 44.4 mln vs 25.3 mln
    Deposits 40.0 mln vs 21.4 mln
    Loans 25.3 mln vs 15.2 mln


.I 18296
.C
gas;crude;
.W
RECENT U.S. OIL DEMAND UP 2.1 PCT FROM YEAR AGO.
    WASHINGTON, March 3 - U.S. oil demand as measured by
products supplied rose 2.1 pct in the four weeks ended February
27 to 16.39 mln barrels per day (bpd) from 16.05 mln in the
same period a year ago, the Energy Information Administration
(EIA) said.
    In its weekly petroleum status report, the Energy
Department agency said distillate demand was down 2.1 pct in
the period to 3.37 mln bpd from 3.44 mln a year earlier.
    Gasoline demand averaged 6.60 mln bpd, up 2.4 pct from 6.44
mln last year, while residual fuel demand was 1.47 mln bpd, up
1.9 pct from 1.44 mln, the EIA said.
    Domestic crude oil production was estimated at 8.38 mln
bpd, down 8.7 pct from 9.18 mln a year ago, and gross daily
crude imports (excluding those for the SPR) averaged 4.11 mln
bpd, up 36.9 pct from three mln, the EIA said.
    Refinery crude runs in the four weeks were 12.21 mln bpd,
up 2.2 pct from 12 mln a year earlier, it said.
    Year-to-date figures will not become available until March
26 when EIA's Petroleum Supply Monthly data for January 1987
becomes available, the agency said.


.I 18298
.C
coffee
.W
COFFEE PRICE DROP NOT AFFECTING COLOMBIA'S DEBT.
    Bogota, march 4 - the sharp fall in international coffee
prices will not affect colombia's external credit situation,
finance minister cesar gaviria told reuters.
    "our foreign debt is high, but we can pay, and I hope the
foreign banking community will maintain its position toward us,"
he said.
    He said the current decline on world coffee markets was not
totally unexpected and would have no immediate bearing on
colombia's financial state, which he described as sound.
    Gaviria said the decline in coffee prices could mean a loss
of 1.5 billion dlrs in revenues for 1987.
    The conservative party and the country's largest trade
union called this week for the debt to be rescheduled following
the price drop.
    Colombia, the only major latin american country not to have
rescheduled its external public debt, has a total foreign debt
of 13.6 billion dlrs.


.I 18300
.C
oilseed;grain;soybean;cotton;rice;
.W
USDA WOULD SCRAP COTTON, RICE, BEAN PRICE FLOORS.
    WASHINGTON, March 4 - The package of proposed farm policy
changes that the Reagan administration sent to Congress today
includes a provision that would eliminate minimum price support
levels for upland cotton, rice and soybeans.
    The package, obtained by Reuters, also includes a
provision, outlined in advance by USDA officials, that would
increase the annual permissible cut in the basic price support
levels for all major crops to 10 pct from five pct.
    Under current law, the basic support prices for upland
cotton, rice and soybeans between 1987 and 1990 cannot be cut
below 50 cents per lb, 6.50 dlrs per hundredweight and 4.50
dlrs per bushel, respectively.
    USDA's intention to propose scrapping price floors for
cotton, rice and soybeans had not been disclosed previously.


.I 18303
.C
reserves
.W
SOUTH AFRICAN FOREIGN RESERVES UP SHARPLY.
    JOHANNESBURG, March 4 - South Africa's total gold and
foreign assets rose by 700 mln rand in February to 6.2 billion
rand after rising by almost one billion rand in January,
Reserve Bank Governor Gerhard de Kock said.
    De Kock, interviewed on state-run television, gave no
breakdown of the reserves.
    He also said that to curb inflation, salary increases would
have to be below the inflation rate. The state must set an
example by keeping wage increases below the inflation rate, he
said.
    Consumer prices rose by 16.1 pct in the year to January.


.I 18304
.C
acq
.W
WTC INTERNATIONAL <WAF> SETS SOUTH AFRICA TRUST.
    TORRANCE, Calif., March 4 - WTC International N.V. said it
has sold its affiliates in South Africa to an independent
trust, created to continue the operations in that country.
    The purchase price was about 8.4 mln dlrs, represented by a
ten-year interest-bearing note, payable annually at 11 pct, to
be paid by the trust out of proceeds from the South African
operations, the company said.
    WTC said its board concluded in view of the social,
political and economic situatin in South Africa, it was best to
separate the company from its interests there.


.I 18307
.C
coffee
.W
IVORY COAST SAYS COFFEE PRICE FALL SHORT-LIVED.
    By Jean-Loup Fievet, Reuters
    ABIDJAN, March 4 - Ivory Coast today predicted that the
present coffee price crash recorded after the collapse of the
recent International Coffee Organisation (ICO) meeting in
London would not last long.
    Commenting on Monday's failure by producer and consumer
nations to agree on new export quotas needed to tighten an
oversupplied coffee market, Ivorian Agriculture Minister Denis
Bra Kanon told reporters that traders would eventually be
obliged to restore their positions.
    "I am convinced the market is going to reverse by April," he
told a news conference here at his return from the failed
London talks.
    Robusta coffee beans for May delivery ended the day in
London down about 50 sterling at 1,265 sterling a tonne, the
lowest since 1982.
    Bra Kanon estimated at at least 535 billion CFA francs
(1.76 billion dlrs) the overall loss in revenues earned by
Ivory Coast from all its commodities exports this year if the
slide on the world markets continues.
    He disclosed that his country - the world's biggest cocoa
producer and the third largest for coffee -- would spearhead an
African initiative to reach a compromise formula by the end of
next month.
    Ivory Coast has been chosen by the Abidjan-based
Inter-African Coffee Organisation (IACO) to speak on behalf of
the continent's 25 producer nations at the London talks.
    "An initiative from IACO is likely very soon," he said
without elaborating.
    "Following the London collapse, we have immediately embarked
on a concertation course to avoid breaking an already fragile
market," he said.
    Questioned by journalists, the minister said President
Felix Houphouet-Boigny estimated for the moment that his
government would not be forced to reduce the price guaranteed
by the state to Ivorian coffee-growers for the current season.
    Last year, the West African nation announced that the
coffee producer price would stay at 200 CFA francs (65 cents)
per kilo.
    Bra Kanon said that his country would strive to diversify
its agricultural production to avoid beeing too dependent from
world market fluctuation.
    A communique read over the state-run television tonight
said that during today's weekly cabinet meeting, the veteran
Ivorian leader reaffirmed "his faith in Ivory Coast's bright
(economic) future" despite the commodities price slide.
    The Agriculture Minister also announced the government
decided to earmark a sum of 7.5 billion CFA francs (24.71 mln
dlrs) to support the country's small farmers.
    Financially-strapped Ivory Coast, long regarded as one of
Africa's showpiece economies, is going through difficult times
following the sharp slump in the world price of cocoa and
coffee.
    Ivory Coast's real gross domestic product is expected to
grow only one pct this year compared to five pct in 1986,
according to a recent Finance Ministry estimate.


.I 18308
.C
bop;trade;
.W
N.Z. CURRENT ACCOUNT DEFICIT NARROWS IN JANUARY.
    WELLINGTON, March 5 - New Zealand's current account deficit
narrowed to 180 mln N.Z. Dlrs in January from 203 mln, revised
from 207 mln, in December and 305 mln in January 1986, in a
smoothed measurement, the Statistics Department said.
    Unsmoothed figures show a deficit of 162 mln dlrs for
January against 107 mln, revised from 75 mln for December 1986
and 575 mln in January 1986.
    The smoothed series -- adjusted to iron out random
fluctuations -- shows a widening surplus on merchandise trade
to 46 mln from a surplus of 33 mln, revised from 43 mln dlrs in
December and a 71 mln deficit in the a year ago period.
    Exports were 905 mln dlrs against 929 mln, revised from 971
mln in December and 816 mln a year earlier, while imports fell
to 858 mln from 895 mln, revised from 928 mln in December and
888 mln in January 1986.
    Unadjusted merchandise figures show a surplus of 53 mln
dlrs vs 141 mln, revised from 203 mln surplus in December 1986
and a 323 mln deficit a year earlier.
    The deficit on invisibles on unsmoothed figures eased to
215 mln dlrs from 248 mln, revised from 277 mln in December and
252 mln in January 1986.
    The smoothed deficit on invisibles fell to 226 mln from 237
mln, revised from 250 mln in December and 234 mln in the year
ago period.


.I 18315
.C
gold
.W
REAGAN'S REMARKS HELP GOLD TO RECOVER IN HONG KONG.
    HONG KONG, March 5 - Gold rose by about 50 U.S. Cents an
ounce, following a statement by President Ronald Reagan that
the arms-for-hostages deal with Iran "was a mistake," dealers
said.
    Bullion rose to 409.40/90 dlrs from an initial low of
408.90/409.40. This compares with the opening of 409.00/50 and
New York's close of 410.00/50.
    Dealers noted mild short-covering in the metal after some
initial selling by local investors. Trading was fairly quiet
this morning partly owed to the slow U.S. Dollar activities,
they added.
    However, Reagan's remarks had only a short-lived bullish
impact on the gold price, which is now stabilising at 409.10/60
dlrs, dealers said.
    On the local market, the metal traded in a narrow range of
3,800 and 3,805 H.K. Dlrs a tael against yesterday's 3,778
close.


.I 18316
.C
money-supply
.W
TAIWAN ISSUES MORE CDS TO CURB MONEY SUPPLY GROWTH.
    TAIPEI, March 5 - The central bank has issued 7.08 billion
dlrs worth of certificates of deposit (CDs), bringing the value
of CD issues so far this year to 93.29 billion, a bank
spokesman told Reuters.
    The new CDs, with maturities of six months, one year and
two years, carry interest rates ranging from 3.9 to 5.15 pct.
    The issues are designed to help curb the growth of the M-1B
money supply which has expanded along with Taiwan's foreign
exchange reserves, the spokesman said. The reserves reached a
record high of more than 51 billion U.S. Dlrs Wednesday.


.I 18319
.C
ship
.W
UNUSUALLY DRY WEATHER AFFECTS CHINA'S AGRICULTURE.
    PEKING, March 5 - Abnormally warm and dry weather over most
parts of China is seriously affecting crops, the New China News
Agency said.
    It said the drought has made rice planting difficult in
eight provinces, including Guangxi, Sichuan and Hunan. Plant
diseases and insect pests have increased in wheat-producing
areas, it said.
    The agency said some areas of Guangxi, Hubei, Shanxi and
other provinces have been suffering a drought for more than
seven months.
    The agency said the dry weather had reduced the amount of
water stored by more than 20 pct compared with last March,
lowered the water level of many rivers, reduced hydroelectric
power supplies and caused water shortages for industry and
consumers.
    The upper reaches of the Yangtze are at their lowest levels
in a century, causing many ships to run aground and making
harbour manoeuvres difficult, it said.
    The drought has also increased the number of forest fires.
More than 1,000 fires in southern China had destroyed 13,340
hectares of forest by mid-February, it said.


.I 18320
.C
ship
.W
TAIWAN SHIPBUILDER LOOKS FOR JAPANESE VENTURES.
    By Chen Chien-kuo, Reuters
    TAIPEI, March 5 - Taiwan's state-owned China Shipbuilding
Corp (CSBC) plans to seek joint production agreements with
Japan and further diversify into ship repairing to try to trim
its debts, chairman Louis Lo said.
    He told Reuters in an interview that CSBC's first joint
production venture, to build two hulls for <Onomichi Dockyard
Co Ltd>, was a success. Talks on similar projects have been
held with other Japanese firms, including Mitsubishi Heavy
Industries Co Ltd <MITH.T> and Ishikawajima-Harima Heavy
Industries Co Ltd <JIMA.T>, he said.
    Lo said CSBC delivered the hulls of two 2,200-TEU (twenty
foot equivalent unit) container ships this year to Onomichi,
which would complete production.
    "We expect the successful cooperation between us and
Onomichi will pave the way for further cooperation with other
Japanese shipbuilders in the future," Lo said.
    He said Japanese firms would gain from the lower cost of
shipbuilding in Taiwan while CSBC would benefit from Japanese
technology and marketing. This would pose a challenge to
competitors in Europe and South Korea.
    Lo said CSBC has made losses of about 100 mln U.S. Dlrs
since beginning operations in 1975. Its total debt now stands
at about 500 mln dlrs, with annual interest payments of nearly
three mln dlrs.
    But he said the company, which is Taiwan's largest
shipbuilder, still has full government support and had begun
diversifying into ship repairing and manufacture of pipes and
other machinery.
    "We hope we can survive and prosper through diversification,"
he said.
    Lo said income from ship repairing almost doubled to 20 mln
U.S. Dlrs in the year ended June 1986 compared with the
previous financial year. He estimated income would rise to more
than 25 mln dlrs in 1986/87.
    CSBC has orders to build 10 ships totalling 460,000 dead
weight tons (dwt) this financial year, compared with 11 ships
of 462,000 dwt in 1985/86, he said.
    Lo said the prospects for shipbuilding were gloomy at least
until 1991 due to overtonnage, but the outlook for ship
repairing was bright.


.I 18322
.C
ship;crude;
.W
CREDITORS SEEK SWIFT RESCUE PACKAGE FOR JAPAN LINE.
    TOKYO, March 5 - A group of creditor banks hopes to work
out a rescue package for Japan Line Ltd <JLIT.T>, one of the
world's largest tanker operators, by the end of Japan's
business year on March 31, a spokesman for the Industrial Bank
of Japan Ltd <IBJT.T> (IBJ) said.
    Japan Line's cumulative debt was 68.98 billion yen at the
end of September, which exceeded shareholders' equities and
reserves totalling 63.40 billion.
    In December, Japan Line asked banks to shelve repayment of
about 124 billion yen in outstanding loans and about 153
billion in loans to its subsidiaries.
    Japan Line said then that the yen's steep rise and the
world shipping recession had hit the company hard.
    The Japanese daily Asahi Shimbun said today that IBJ and
three other banks plan to abandon a total of 16 billion yen in
loans to Japan Line and a group of creditor banks plans to buy
seven billion yen of new Japan Line shares.
    The spokesman for IBJ, Japan Line's largest creditor, said
the package may write off part of the outstanding loans and
will be worked out before long.
    Commenting on the article, he said the details of the
package have not yet been settled.


.I 18325
.C
wheat;grain;
.W
AUSTRALIAN WHEAT EXPORTS RISE IN FEBRUARY.
    MELBOURNE, March 5 - Australian wheat shipments rose to
1.33 mln tonnes in February from 1.01 mln in January, an
Australian Wheat Board official said.
    February's shipments were down on the 1.54 mln tonnes
shipped in February 1986.
    Cumulative shipments for the first five months of the
October/September wheat year were 6.12 mln tonnes, as against
6.54 mln a year earlier, the official said.
    The major destinations in February were: China (419,196
tonnes), Egypt (301,909), Iraq (142,055), Japan (110,261),
South Korea (100,847) and the Soviet Union (100,056 tonnes).


.I 18327
.C
crude
.W
OPEC STICKING FIRM ON OFFICIAL PRICES - SUBROTO.
    TOKYO, March 5 - OPEC countries are all sticking firmly to
official crude oil prices but the volatility of spot prices is
likely to continue into the third quarter, Indonesian Minister
of Mines and Energy Subroto told Reuters.
    Subroto, attending a Pacific Energy Cooperation conference,
blamed recent rapid spot price changes on unbalanced supply and
demand. "If we stick to the production limitation, the third
quarter will be in better balance."
    He said the market is in a period of transition while the
impact of OPEC's December agreement to cut output and fix
prices at an average 18 dlrs a barrel is worked through.
    Asked whether OPEC members of the Gulf Cooperation Council
(GCC) had any concrete proposals to help Qatar sell its crude
oil in the face of strong resistance to its official prices,
Subroto said: "Apparently they have taken care of that."
    "They (the GCC) meet very often among themselves. I think
they'll help each other," he said.
    Subroto said that as he was not a member of OPEC's Price
Differentials Committee he did not know why the meeting had
been postponed from its scheduled April 2 date.
    "Maybe they find it is better not to have the meeting
because ... Everyone is sticking to official prices," he said.


.I 18328
.C
coffee
.W
THAI COFFEE EXPORTS RISE IN 1986.
    BANGKOK, March 5 - Thai coffee exports rose to 22,068
tonnes in 1986 from 20,430 a year earlier, the Customs
Department said.


.I 18330
.C
money-supply
.W
SOUTH KOREAN MONEY SUPPLY RISES IN FEBRUARY.
    SEOUL, March 5 - South Korea's M-2 money supply rose 0.39
pct to 33,992.0 billion won in February from 33,858.4 billion
in January, when it fell a revised 0.04 pct from December,
provisional Bank of Korea figures show.
    The February figure was up 18.89 pct from a year earlier.
    M-1 money supply rose 4.13 pct to 8,492.1 billion won in
February from January, when it fell 7.82 pct from December. The
February figure marked a year-on-year rise of 18.45 pct.
    The bank previously said M-2 fell 0.06 pct in January.


.I 18331
.C
reserves
.W
PAKISTAN'S FOREIGN EXCHANGE RESERVES FALL.
    KARACHI, March 5 - Pakistan's foreign exchange reserves
fell to 8.43 billion rupees in February from 8.96 billion in
January, compared with 12.97 billion in February 1986, the
State Bank of Pakistan said.
    The bank gave no reason for the fall but local bankers said
big import bills had affected the reserves.
    The Federal Bureau of Statistics has not yet released last
month's import and export figures.


.I 18333
.C
grain;rice;
.W
THAILAND REDUCES MAIN RICE CROP PROJECTION.
    BANGKOK, March 5 - Thailand's main paddy crop is expected
to fall to 15.4 mln tonnes in the 1986/87 (Nov/Oct) season from
a previous 15.68 mln estimate in November and an actual 17.35
mln a year ago, the Thai Rice Mills Association said.
    It said a joint field survey late last month by the
association, the Commerce Ministry and the Bank of Thailand
indicated that paddy output in Thailand's northeast region is
lower than expected because of a drought in several provinces.
    The association said rice growing areas in Nakhon
Ratchasima, Chaiyaphum, Khon Kaen and Mahasarakam were
especially affected by low rainfalls in the second half of
1986.
    It said last November that the drought reduced total
national areas sown with paddy to some 8.25 mln hectares this
year, down from 8.84 mln a year ago.
    The main crop represents about 85 pct of Thailand's paddy
output.


.I 18335
.C
earn
.W
HOECHST GROUP PRE-TAX PROFIT FALLS IN 1986.
    FRANKFURT, March 5 - Hoechst AG <HFAG.F> said its group
pre-tax profit in 1986 would be slightly lower than the 3.16
billion marks posted in 1985, while parent company pre-tax
profits rose slightly from the 1.62 billion in 1985.
    Group turnover fell slightly to 38 billion marks from 42.72
billion in 1985, and parent company turnover fell to around 14
billion marks from 15.35 billion, the company said in a
statement.


.I 18336
.C
gold
.W
BHP TO FLOAT GOLD UNIT WITH ONE-FOR-THREE ISSUE.
    MELBOURNE, March 5 - The Broken Hill Pty Co Ltd <BRKN.S>
(BHP) said it plans a renounceable one-for-three issue of
rights to float a new company, <BHP Gold Mines Ltd> (BHPGM),
which will hold most of BHP's gold interests.
    In a statement BHP said the 25-cent par rights would be
priced at 50 cents for 430 mln of the BHPGM shares on offer.
BHP will subscribe for the remaining 540 mln shares, or 56 pct
of issued capital, on the same terms.
    BHPGM will pay 440 mln dlrs for BHP's gold interests,
excluding its stake in Papua New Guinea's <Ok Tedi Mining Ltd>
and those interests held by BHP's <Utah International Inc>.
    The BHP statement said the issue will be made to
shareholders registered on March 27. It opens April 4 and
closes April 29, and is underwritten by <J.B. Were and Son>.
Rights will be traded on Australian stock exchanges from March
23 to April 22, and the new shares will be quoted from June 4.
    BHP said the new company will be one of Australia's larger
gold producers, with annual output exceeding 170,000 ounces. It
said there are plans to boost production to 300,000 ounces by
the early 1990s. BHPGM's portfolio will include several
Australian mines -- 30 pct of Telfer, 100 pct of Ora Banda and
Browns Creek and 20 pct of the new Boddington development.
    The statement said BHPGM would also hold BHP's 45 pct stake
in the Coronation Hill Property in the Northern Territory, and
its 55 pct stake in a new venture near Gympie, Queensland.
    BHPGM chairman-designate John Gough said it was a quality
gold stock.
    "The diversity and depth of BHP Gold's portfolio ... Give
the company a sound foundation in current gold production and
an exciting potential for growth," he said.


.I 18337
.C
earn
.W
HK BANK EXPECTED TO POST 10 TO 13 PCT PROFIT RISE.
    By Allan Ng, Reuters
    HONG KONG, March 5 - The Hongkong and Shanghai Banking Corp
<HKBH.HK> is likely to show a rise in profit of between 10 and
13 pct for 1986, reflecting stronger than expected loan growth,
share analysts polled by Reuters said.
    Their estimates of the bank's net earnings for last year
ranged from 2.99 to 3.1 billion H.K. Dlrs. Results will be
announced on Tuesday. The 1985 net profit was 2.72 billion.
    They forecast a final dividend of 29 cents for a total of
42 cents for the year against 38 cents in 1985, adjusted for a
one-for-five bonus issue.
    Analysts said they expected the bank to recommend a bonus
issue this year, probably one for three or one for five.
    The bank's 61.5 pct subsidiary Hang Seng Bank Ltd <HSGH.HK>
is to report its 1986 results on Friday.
    Analysts expect Hang Seng to announce net profit of more
than one billion dlrs for the first time, an increase of 10 to
12 pct.
    They expect Hang Seng to pay a final dividend of 1.37 dlrs
for a total of 1.75 dlrs for the year against 1.60 in 1985.
    Analysts said that while the use of undisclosed inner
reserves by banks here makes forecasting very imprecise,
Hongkong Bank benefited from the unexpected strength of the
Hong Kong economy in 1986, when gross domestic product grew by
nearly nine pct against an initial forecast of 4.5 pct.
    "They benefited considerably from the pickup in loan demand,
as their loan portfolio is well balanced," an analyst at Mansion
House Securities (F.E.) Ltd said.
    Government figures show that total loans and advances rose
by 13.8 pct in 1986, compared with a 4.5 pct increase in 1985.
    Loans to finance Hong Kong's visible trade, the mainstay of
the local economy, rose by 15.1 pct against a decline of five
pct in 1985.
    Low interest rates also helped the bank. Interest received
on loans was low, with the prime rate at 6.5 pct at end-1986,
but interest paid on savings was two pct. Hongkong Bank and
Hang Seng Bank control half of all deposits in the banking
system, giving them access to a large base of low-cost funds.
    The strength of the real-estate market was another major
income source for the bank group. Loans to finance property
development and instalment mortgages rose sharply.
    "The Hongkong Bank group is still the leader in mortgage
business despite tough competition from the Bank of China group
and other foreign banks," one analyst said.
    The high level of activity on the capital and equities
markets in 1986 contributed to a sharp improvement in Hongkong
Bank subsidiaries Wardley Ltd <WAIA.HK> and <James Capel and
Co>, analysts said. "Wardley had a tremendous year acting as
financial adviser and underwriter," an analyst said.
    Wardley was underwriter for last year's billion-dlr
flotation of <Cathay Pacific Airways Ltd>, of which Hongkong
Bank owned 30 pct at the time.
    The bank's stake has since been cut to 16.4 pct in return
for 1.57 billion dlrs. It also sold its entire 48.8 pct stake
in <South China Morning Post Ltd>, the larger of two
English-language daily newspapers here, for 1.18 billion dlrs.
    The proceeds will go to reserves for acquisitions and will
not show up in the profit and loss accounts, analysts said.
    Analysts said the bank had also been helped by a reduced
need to write off bad debts. "The need for provisions was much
lower than the year before," said Tony Measor of Hong Leong
Securities Co Ltd. "Last year's profits should have been 2.8 to
2.9 billion dlrs if not for the huge provisions."
    Former Hongkong Bank chairman Michael Sandberg said the
bank wrote off hundreds of millions of dollars against its
shipping exposure in 1985. Lesley Nickolds of County Securities
Asia Ltd said she saw no major shipping writeoffs in 1986. She
forecast profit of 2.99 billion dlrs.
    The bank's Latin American exposure, mainly through its
51-pct owned Marine Midland Banks Inc <MM>, appears to have
improved substantially, analysts said. Marine Midland's 1986
fourth-quarter loan-loss provisions fell to 44.1 mln U.S. Dlrs
from 89.2 mln a year before. Its 1986 net profit rose to 145
mln U.S. Dlrs from 125 mln in 1985.


.I 18338
.C
acq
.W
HUGHES TOOL DIRECTORS REJECT MERGER WITH BAKER.
    HOUSTON, Texas, March 5 - The directors of Hughes Tool Co
<HT> said they would recommend to shareholders that they reject
a merger with Baker International Corp <BKO> today.
    Hughes vice-president Ike Kerridge said the recommendation
would be put to shareholders at a meeting scheduled for 10 A.M.
Local time (1600 GMT) to discuss the proposed merger.
    Kerridge said the board met yesterday to discuss the merger
but decided against it.
    The Hughes board objected to a U.S. Department of Justice
requirement that Baker sell off several specialised
subsidiaries in businesses related to oil-drilling.
    The Hughes board last week indicated that it might cancel
the merger because of the Department of Justice requirement.
    The board of directors of the California-based Baker had
approved the merger. On February 17 Baker said it had signed an
agreement to sell one of the subsidiaries.
    The companies had been given until April 22 to comply with
the Justice Department requirement, Kerridge said.


.I 18342
.C
earn
.W
CANON INC (CANN.T) YEAR ENDED DECMEBER 31.
    TOKYO, March 5 -
    Group shr 18.34 yen vs 58.72
    Net 10.73 billion yen vs 37.06 billion
    Pretax 27.76 billion yen vs 84.78 billion
    Operating 30.06 billion yen vs 88.81 billion
    Sales 889.22 billion vs 955.78 billion
    Note - The company attributed the profit fall largely to
the yen's appreciation during the period. Domestic sales rose
0.4 pct to 274.17 billion yen from a year earlier while exports
declined 9.9 pct to 615.04 billion.


.I 18344
.C
dlr;money-fx;yen;
.W
NEW CURRENCY PROBLEM SEEN AMONG U.S, EUROPE, JAPAN.
    By Eric Hall, Reuters
    TOKYO, March 5 - The highly visible drama involving the
yen's sharp rise against the U.S. Dollar is obscuring the fact
that the Japanese currency has hardly budged against major
European currencies, thus creating a new set of exchange rate
distortions, Japanese and European research officials said.
    The officials, looking beneath the rhetoric of statements
by the Group of Five (G-5) industrial nations, told Reuters the
currency movements of the past two years are also creating a
fundamentally new world trade picture, which is throwing up new
trade tensions and imbalances.
    Trade figures show that the new currency alignments are
already changing the Japan-U.S. Trade axis into a Japan-
European Community (EC) axis, to the discomfort of Europe.
    In many ways, not least in terms of rare international
cooperation, the September, 1985 New York Plaza pact between
the U.S., Japan, West Germany, Britain and France to cut down
the value of the dollar was a historic one.
    But it is the underlying peaks and troughs of the major
currency movements which lay bare the real picture, in which
the Plaza pact appears as an event of prime importance, but not
necessarily central significance, the officials said.
    The officials said that when the Plaza agreement took
place, the dollar was already on its way down. The agreement
simply helped it on its way. Senior EC financial expert in
Tokyo Tomas de Hora has watched the movements closely.
    "You have to look at the dollar's peak compared with now,
and that was well before Plaza," he said.
    On February 25, 1985, the dollar peaked against the yen at
263.15 yen. On September 20, the Friday before Plaza, it was
242. Since then, despite massive Bank of Japan intervention and
periodic market frights about further G-5 concerted action, the
dollar trend has been down, down, down.
    Yet the ECU is now around 173.4 yen. The historical cross
rates for sterling and the mark tell much the same story. The
European currencies are moving back up against the yen.
    The close relationship between exchange rates and trade
flows makes it difficult to see which is driving which, but
undoubtedly the trade equation between the big three is
changing. In 1986, Japanese imports and exports with the EC
both grew by around 50 pct in dollar terms, five pct in yen.
This gave Japan a 16 billion dlr trade surplus.
    Last January, Japanese exports to the EC totalled half of
of sales to the U.S, against about a third in recent years.
    Trade with the U.S in 1986 rose 23 pct for exports and 12
pct for imports in dollar terms, but fell 13 pct for exports
and 21 pct for imports in yen terms.
    "The basic meaning for Europe is that Japanese firms have a
tremendous interest in exporting to Europe, where every unit
sold maximises profits in yen terms, which is what is important
to them. Suddenly, instead of the U.S., It is Europe that is
laying the golden egg," said de Hora.
    The EC is worried. EC business also had a remarkable year
in Japanese sales, but this can be explained partly due to its
start from a small base, compared with total Japan-U.S. Trade.
    The Japanese think EC firms are now more competitive than
U.S. Firms, a factor which is aggravating the exchange rate
imbalance, and which will cause problems.
    "This currency alignment between Japan and the EC is
reflecting the excellent performance of the EC countries. But
therefore, Japanese goods may keep their price competitive
edge," said Azusa Hayashi, Director of the First International
Economic Affairs Division of the Foreign Ministry. "If you want
my objective view, I don't expect a drastic improvement in our
trade imbalance. Last year, we asked for moderation in exports,
and this year we may have to do so again," he said.


.I 18347
.C
tin
.W
THAI TIN EXPORTS RISE IN JANUARY.
    BANGKOK, March 5 - Thailand exported 1,816 tonnes of tin
metal in January, up from 1,731 in December and 1,330 a year
ago, the Mineral Resources Department said.
    It said major buyers last month were Singapore, Japan,
Britain, the Netherlands, Malaysia and the U.S.


.I 18349
.C
money-fx;interest;
.W
U.K. MONEY MARKET OFFERED EARLY ASSISTANCE.
    LONDON, March 5 - The Bank of England said it had invited
an early round of bill offers from the discount houses. The
Bank forecast the shortage in the system today at around 1.15
billion stg.
    Among the main factors affecting liquidity, bills maturing
in official hands and the take-up of treasury bills will drain
some 732 mln stg and exchequer transactions some 245 mln. In
addition, bankers' balances below target and a rise in note
circulation will drain a further 135 mln stg and 30 mln stg
respectively.


.I 18350
.C
trade
.W
BELGOLUX TRADE MOVES INTO SURPLUS IN 1986.
    BRUSSELS, March 5 - The Belgo-Luxembourg Economic Union
(BLEU) moved into a narrow trade surplus of 4.7 billion francs
in 1986 after a 140.4 billion franc deficit in 1985, figures
given by a spokesman for the National Statistics Institute
show.
    He said imports fell last year to 3,061.8 billion francs
from 3,304.1 in 1985 while exports were also lower at 3,066.6
billion francs against 3,163.7 billion.
    In December, the BLEU had an 11.9 billion franc trade
surplus after a 10.9 billion franc surplus in November and a
2.3 billion franc surplus in December 1985.


.I 18351
.C
money-supply
.W
SPAIN RAISES BANKS' RESERVE REQUIREMENT.
    MADRID, March 5 - The Bank of Spain said it raised the
reserve requirement for banks and savings banks to 19 pct of
deposits from 18 pct to drain excess liquidity which threatened
money supply and inflation targets.
    In a statement issued late last night, the central bank
said the measure would take effect from March 13.
    "In recent weeks, there has been excess liquidity in the
Spanish economy which, if not controlled, would threaten the
monetary and inflation targets set by the government," the
statement said.
    Banking sources said the measure would drain about 200
billion pesetas from the system. The maximum reserve
requirement allowed by law is 20 pct.
    The move follows a half-point increase yesterday in the
Bank of Spain's key overnight call money rate, which now stands
at 13.5 pct. At today's auction, however, the bank left the
rate unchanged.
    Spain's principal measure of money supply, the broad-based
liquid assets in public hands (ALP), grew at annualised rate of
8.3 pct in January compared with 11.4 pct during the whole of
1986 and a target of eight pct for 1987.
    Banking sources said that although the January money supply
figures were good, compared with annualised rates of 13.9 pct
in December and 10.2 pct in January 1986, ALP growth appeared
to have accelerated in February, raising government concern.
    Regarding inflation, recent figures have suggested that
prices were under control.
    Secretary of State for Trade, Miguel Angel Fernandez
Ordonez, said this week that the annualised inflation rate for
February, not yet officially announced, fell to 5.5 pct from
six pct in January, compared with inflation of 8.3 pct during
1986 and a government target of five pct for this year.


.I 18352
.C
iron-steel
.W
INDIA AND JAPAN TO DISCUSS IRON ORE PRICES.
    NEW DELHI, March 5 - The state-owned Minerals and Metals
Trading Corp will send a team to Japan next week to negotiate
an iron ore export contract for 1987/88 beginning April 1,
trade sources said.
    Japan, the biggest buyer of Indian iron ore with imports of
around 23 mln tonnes a year, has asked India to reduce prices
from the current average of 18 dlrs a tonne, the sources said.
    "Japan has said it may be forced to reduce ore imports from
India next year if New Delhi fails to reduce the price," one
source said, but declined to give further details.


.I 18358
.C
trade;reserves;
.W
TAIWAN FOREIGN EXCHANGE RESERVES HIT NEW HIGH.
    TAIPEI, March 5 - Taiwan's foreign exchange reserves hit a
new high of more than 51 billion U.S. Dlrs on March 4, compared
with 50 billion in mid-February and 25.1 billion a year
earlier, the central bank said.
    Bank governor Chang Chi-Cheng told reporters the increase
came mainly from the bank's purchases of more than one billion
U.S. Dlrs on the local interbank market between February 18 and
March 4.
    He said the rise showed signs of slowing, however, because
Taiwan has liberalised import policy and expects its trade
surplus to decline over the next few months as a result.
    Chang declined to predict how high the reserves might rise,
but local economists have forecast they will hit 60 billion
U.S. Dlrs by the end of 1987.
    In January, Taiwan reduced import tariffs of up to 50 pct
on some 1,700 foreign products. It had been under growing U.S.
Pressure to cut its 1986 record 13.6 billion dlr trade surplus
with the U.S. Taiwan's 1985 surplus with the U.S. Was 10.2
billion, according to official statistics.
    Wang Chang-Ming, Vice Chairman of the Council for Economic
Planning and Development, told Reuters the government is
planning another round of deep tariff cuts in the second half
of this year.
    The reserves could support imports of more than two years
for Taiwan, compared with about three months for Japan and the
U.S.


.I 18360
.C
gold;silver;
.W
BELGIAN ECU COIN ISSUE PRICED, SALE DATE SET.
    BRUSSELS, March 5 - A limited Belgian issue of silver Ecu
coins with a face value of five Ecus will go on sale from March
23 at a price of 500 Belgian francs each, a Finance Ministry
spokesman said.
    Gold Ecu coins with a face value of 50 Ecus will be sold
from the same day. The spokesman told Reuters the price for
these would be fixed just before they go on sale but was likely
to be between 8,500 and 9,000 francs.
    At least two mln silver coins and several hundreds of
thousands of the gold coins will be minted, he said. They will
be sold both in Belgium and abroad.
    The coins will be the first ever denominated in the Ecu,
the "basket" comprised of the 12-nation European Community's
currencies except the Spanish peseta and the Portuguese escudo.
    The issue is being made to mark the 30th anniversary of the
EC's founding Treaty of Rome this month. Finance Minister Mark
Eyskens, who currently presides over the EC's council of
economic and finance ministers, has called the issue a
political act of symbolic value which aimed to make the
Community's goal of monetary integration more concrete.
    The coins will be legal tender in Belgium but most demand
is expected to come from coin collectors.


.I 18361
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN 17 MLN STG EARLY HELP.
    LONDON, March 5 - The Bank of England said it provided just
17 mln stg assistance to the money market in response to an
early round of bill offers.
    Earlier, the Bank had estimated the shortage in the system
today at around 1.15 billion stg.
    The central bank purchased bills for resale to the market
on April 2 at an interest rate of 10-15/16 pct.


.I 18364
.C
sugar
.W
FIRS SLIGHTLY RAISES EC BEET SUGAR OUTPUT ESTIMATE.
    PARIS, March 5 - The French sugar market intervention
board, FIRS, raised its estimate of 1986/87 beet sugar
production in the 12-member European Community to 13.76 mln
tonnes white equivalent in its end-February report from 13.74
mln a month earlier.
    Its forecast for total EC sugar production, including cane
and molasses, rose to 14.10 mln tonnes from 14.09 mln.
Portugal, which joined the Community in January 1986, was
estimated at 12.75 mln tonnes white equivalent, unchanged from
the previous forecast and compared with 12.41 mln tonnes for
1985/86.
    Production for the current campaign in Spain was higher
than reported last month at 1.03 mln tonnes compared with
997,000 tonnes.
    Beet sugar production, expressed as white equivalent, was
estimated at 3.44 mln tonnes in France, 3.17 mln tonnes in West
Germany, 1.72 mln in Italy, 1.30 mln in Britain, 1.22 mln in
the Netherlands, 936,000 tonnes in Belgium/Luxembourg, 499,000
in Denmark, 287,000 in Greece, 183,000 in Ireland and 4,000 in
Portugal.


.I 18366
.C
crude
.W
PAPUA NEW GUINEA PLANS RESOURCES INVESTMENT AGENCY.
    PORT MORESBY, March 5 - The Papua New Guinea Government
will establish a public corporation to invest in resources
projects, Minerals and Energy Minister John Kaputin said.
    "We intend to provide a means through which less privileged
individuals can become part owners and beneficiaries from the
development of mining and petroleum projects," he told
Parliament.
    Existing policy allowing the state up to 30 pct equity in
major mining projects and 22.5 pct in oil and gas projects
would be maintained, he said. The planned agency could take
over the state's equity in current developments.
    Kaputin said Papua New Guinea was experiencing a boom with
exploration companies spending about 60 mln kina annually on
about 150 mining and 23 petroleum projects.
    "The Government is determined to ensure that Papua New
Guinean ownership in minerals and petroleum projects increases
in an orderly way," he said.
    Kaputin did not say when the corporation would be
established or exactly what form it would take, but said the
government would study whether it should be directly involved
in exploration or development.


.I 18367
.C
money-fx
.W
NIGERIAN CURRENCY FIRMS AT LATEST AUCTION.
    LAGOS, March 5 - The Nigerian naira firmed 2.6 pct against
the dollar after 17 banks were disqualified from bidding at
today's weekly foreign exchange auction, the central bank said.
The naira finished at 3.8050 to the dollar, against 3.9050 last
week.
    Only 38.39 mln dlrs of the 50 mln dlrs on offer was sold,
with all 27 bidding banks successfully obtaining hard currency.
    The effective rate, including a central bank levy, for
transactions in the coming week, was 3.8241 against 3.9246 last
week.
    The failure to sell the whole allocation was due to the
central bank's unprecedented disqualification of 17 banks as
punishment for inadequate documentation in previous
transactions.
    Banks are required to submit proof that their bids are
based on valid commercial transactions and the central bank has
complained in the past that many are failing to produce the
right paperwork within the specified time.


.I 18369
.C
trade
.W
U.S. TELLS JAPAN TO DO MORE TO CUT TRADE SURPLUS.
    TOKYO, March 5 - U.S. Undersecretary of State for Economic
Affairs Allen Wallis said he had urged Japan to do much more to
reduce its large trade surplus with the United States.
    "Our central message to Japan this week was that while we
have made progress in some areas, much needs to be done," he
told a press conference after three days of talks.
    "What we need is a resolution of trade issues, we need
visible efforts to restructure the economy to encourage more
imports and we need greater domestic-led growth."
    Forecasting sluggish economic growth in Japan this year,
Wallis urged Tokyo to stimulate domestic demand to help reduce
its trade surplus, which hit a record 83 billion dlrs in 1986.
    He named several areas of particular concern to Washington
-- computer microchips, supercomputers, Kansai airport,
agricultural products and car telephones.
    He warned that the U.S./Japan agreement governing trade in
semiconductors was in jeopardy. Despite the pact, Japanese
producers are still dumping microchips in foreign markets other
than the United States while U.S. Penetration of the Japanese
market has not increased, he said.


.I 18370
.C
grain;corn;
.W
TAIWAN BUYS 60,000 TONNES OF U.S. MAIZE.
    TAIPEI, March 5 - The joint committee of Taiwan's maize
importers has awarded contracts to two U.S. Companies to supply
two shipments of maize, totalling 60,000 tonnes, a committee
spokesman told Reuters.
    Continental Grain Co of New York received the first 30,000
tonne cargo contract, priced at 93.86 U.S. Dlrs per tonne,
while Peavey Co of Minneapolis won the second shipment, also
30,000 tonnes, at 93.36 dlrs per tonne.
    Both shipments are c and f Taiwan and are set before March
16, the spokesman said.


.I 18377
.C
gnp
.W
GERMAN ECONOMIC OUTLOOK SEEN FAIRLY BRIGHT.
    KIEL, West Germany, March 5 - The outlook for the West
German economy is relatively bright, with gross national
product expected to expand by three pct this year, Kiel
University's Institute for World Economy said.
    The GNP forecast by the institute, one of five leading
economic research bodies in West Germany, is more optimistic
than that of the other institutes, some of which have recently
reduced their GNP forecasts to between two and 2.5 pct.
    In a report the Kiel institute said West Germany's export
outlook has not deteriorated fundamentally despite the mark's
strength against the dollar and other major currencies.
    "The danger that exports will slump in 1987 appears, all in
all, limited," the report said. "On the contrary, a slight rise
in exports can be expected."
    The institute said past experience has shown West German
exporters will move to counterbalance currency factors by
cutting costs, trying to penetrate new markets and adjusting
their product ranges.
    They will be aided in 1987 by an expected slight rise in
economic growth in industrial countries. At the same time, the
decline in exports to oil producing countries looks set to slow
this year.
    West German GNP growth in 1987 will be led by renewed
advances in domestic consumption and investment spending, both
of which will in turn be buoyed by an expansionary monetary
policy, the institute said.
    However, it said the labour market would see only a slight
improvement because companies will be reluctant to hire
additional workers due to higher labour costs caused partly by
agreed reductions in working hours.
    The institute cautioned that the expansionary stance of
monetary policy in West Germany was likely to bring a marked
acceleration of inflation.
    It also warned that what it called the worldwide
synchronization of monetary policy heightened the risk of a new
global recession. It said central banks in industrialized
countries, including the Bundesbank, had followed the Federal
Reserve Board's expansionary course.
    The institute said this in turn was bound to lead
eventually to a rise in worldwide inflation and a shift in U.S.
Policy towards a more restrictive policy. Other central banks
were likely to follow suit, causing a recession that could
aggravate the debt crisis of developing countries as well as
increase protectionism around the world.
    Although Germany cannot entirely shield itself from the
negative effects of the global synchronization of monetary
policy, it should do all it can to strengthen the forces of
growth at home.
    The institute said this could be done by ensuring that
fiscal policy fosters a willingness to work and invest. Taxes
should be cut by a greater amount than currently planned, and
wage increases in 1987 and 1988 should be markedly lower than
in 1986. It also said the Bundesbank should reduce inflationary
pressures by cutting the current rate of growth in money supply
to about four pct.


.I 18378
.C
coffee
.W
CREDITOR BANKS MAY BUY INTO SINGAPORE COFFEE FIRM.
    SINGAPORE, March 5 - The nine creditor banks of the
Singapore coffee trader <Teck Hock and Co (Pte) Ltd> are
thinking of buying a controlling stake in the company
themselves, a creditor bank official said.
    Since last December the banks have been allowing the
company to postpone loan repayments while they try to find an
overseas commodity company to make an offer for the firm.
    At least one company has expressed interest and
negotiations are not yet over, banking sources said.
    However, the banks are now prepared to consider taking the
stake if they find an investor willing to inject six to seven
mln dlrs in the company but not take control, the banking
sources said.
    Teck Hock's financial adviser, Singapore International
Merchant Bankers Ltd (SIMBL), will work on the new proposal
with the creditor banks, they said.
    Major holdings are likely to be held by the two largest
creditor banks, Standard Chartered Bank <STCH.L> and
Oversea-Chinese Banking Corp Ltd <OCBM.SI>, they added.
    Teck Hock owes over 100 mln Singapore dlrs and the creditor
banks earlier this week agreed to let Teck Hock fufill
profitable contracts to help balance earlier losses.
    The nine banks are Oversea-Chinese Banking Corp Ltd, United
Overseas Bank Ltd <UOBM.SI>, <Banque Paribas>, <Bangkok Bank
Ltd,> <Citibank NA>, Standard Chartered Bank Ltd, Algemene Bank
Nederland NV <ABNN.AS>, Banque Nationale De Paris <BNPP.PA> and
<Chase Manhattan Bank NA.>


.I 18379
.C
bop;trade;
.W
******U.K. 4TH QTR TRADE DEFICIT 2.6 BILLION STG, CURRENT ACCOUNT DEFICIT 760 MLN - OFFICIAL.
Blah blah blah.

.I 18381
.C
trade
.W
ECONOMIC SPOTLIGHT - POLISH SANCTIONS.
    By Irena Czekierska, Reuters
    WARSAW, March 5 - Poland says U.S. Sanctions have cost its
economy 15 billion dlrs and has made clear it wants Washington
to take a lead in repairing the damage after lifting remaining
restrictions two weeks ago.
    Polish officials are unable to provide a precise breakdown
of the figure, saying it takes into account a number of
hypothetical losses. Some of them are "too sophisticated to
convert into financial terms," one banking source said.
    But Western economic experts say the effect of sanctions is
impossible to calculate.
    They say it is blurred by the poor performance of Poland's
economy, and dismiss the 15 billion dlr figure as illusory.
    "Sanctions have provided a very useful excuse for under-
achieving. They did have a bad effect, yes, but they only
contributed to largely internal, economic problems," one said.
    The U.S. Imposed the measures and withdrew Most Favoured
Nation (MFN) trading status from Poland in 1982 in retaliation
for suppression of the Solidarity free trade union under
martial law. The estimated cost to the Polish economy was
originally devised several years ago by the Institute of
National Economy, an offshoot of the central planning
commission.
    According to one Western envoy, an expert on Polish
economic affairs, it extrapolated 1979 information on growth
trends in trade with the United States, as well as increases in
credits from Western commercial and government lenders.
    But the calculations were based on a time when trade was
booming and credits still flowed freely, he said, dismissing
the estimate as "a theoretical projection based on a high point,
which has no real scientific evaluation."
    A foreign trade ministry official said Polish exports to
the U.S. In the late 1970s averaged around 400 mln dlrs
annually and had fallen by half since the sanctions were
imposed.
    Imports have suffered, slumping from around 800 mln dlrs to
200 mln, as credits ran out. Poland has a dwindling trade
surplus with the West. Last year it was one billion dlrs
against a targeted 1.6 billion, official figures show.
    Acknowledging that sanctions have lost Poland important
U.S. Markets -- including agricultural equipment, textiles,
chemicals and some foodstuffs -- Western economists say credits
dried up for economic not political reasons.  "Poland is
accusing the West of letting economic relations deteriorate for
political reasons," said one expert. "It's an illusion based on a
misunderstanding of Western economy."
    "There's a limit to how much you can go on giving someone
who has no hope of repaying it," another said, adding that
Poland had benefited from a global phenomenon of easy credits
in the 1970s which were no longer today's reality.
    Describing the 15 billion dlr assessment as "nebulous," one
diplomat said it also included losses of hypothetical orders
and setbacks to Polish research through the curbing of
scientific links and exchanges.  Western officials say the
lifting of sanctions and new MFN status will have little impact
on Poland, which has a hard currency debt of 33.5 billion dlrs
and lacks the means to modernise its industry.
    "MFN doesn't really mean anything, only that Poland will not
be treated worse than other countries. It will be difficult to
regain access to the U.S. Market because different forces are
in play now," said one Western envoy.
    He said Polish products were not competitive, and their
quality was too low. Trade wars and possible protectionist
measures amongst the U.S., Japan and Europe would also hamper
Poland's efforts to regain entry.
    Deputy foreign trade minister Janusz Kaczurba recognised
this fact recently.
    Kaczurba told the official PAP news agency recently, "Making
up our lost position will take a long time and be uncommonly
difficult, and in certain cases impossible... In a period of
two to three years it will be possible to increase the level of
exports by only about 100 mln dlrs."
    While Poland is unlikely to seek compensation, it says it
has a "moral right" to assistance from the U.S. Which it says
imposed the sanctions illegally. But a Western economist said
"The argument that U.S. Sanctions were a unilateral torpedoing
of the Polish economy won't cut any ice. The Americans will
just reply that the Poles acted immorally in crushing
Solidarity."
    Nevertheless, Polish National Bank head Wladyslaw Baka, in
talks in Washington last week with the International Monetary
Fund (IMF) and World Bank, made it clear that Poland was
looking for a lead from the United States.
    He was quoted by PAP as saying that Poland would meet its
financial obligations to the United States, "but not in a short
time and not without a cooperative stand on the part of its
foreign economic partners."
    He stressed that the U.S. "had a particular opportunity to
play a part in the cooperative policy of Poland's partners
interested in the settlement of Polish debt."
    Putting it more sharply, one senior banking official blamed
Washington for obstructing talks with the World Bank, IMF and
Paris Club of Western creditor governments in recent years and
said it should now play a more positive role.
    "As a major superpower the United States can influence
international organisations," he said, citing recent meetings
aimed at stabilising currencies as an example of the extent to
which Western nations were prepared to cooperate.


.I 18382
.C
bop;trade;
.W
U.K. FOURTH QUARTER TRADE DEFICIT 2.6 BILLION STG.
    LONDON, March 5 - Britain had a visible trade deficit of
2.6 billion stg in the fourth quarter of 1986 against a revised
deficit of 2.9 billion in the third quarter, official
statistics show.
    Seasonally-adjusted figures issued by the Central
Statistical Office (CSO) show the current account was in
deficit by 760 mln stg against an upwardly revised third
quarter shortfall of 930 mln.
    For 1986 as a whole, visible trade was in deficit by 8.3
billion stg, sharply up from 1985's 2.2. Billion shortfall and
a 4.4 billion deficit in 1984.
    Preliminary figures for invisible transactions in the
fourth quarter show a surplus 1.8 billion stg to give an
estimated surplus for 1986 of 7.2 billion. The fourth quarter
figure was in line with CSO projections released on Friday.
    The third quarter invisibles surplus was revised down to
1.9 billion stg from 2.25 billion.
    In 1985 the invisibles surplus was 5.1 billion stg.
    The reduced deficit on visible trade in the fourth quarter
was due to an increase in the surplus on oil of 200 mln stg and
a reduction in the non-oil trade deficit of 100 mln, the CSO
said.
    However, 1986's surplus on oil trade was 4.0 billion stg
lower than in 1985, while the deficit on non-oil trade
increased by 2.1 billion.
    The figures were broadly in line with market expectations.
    The CSO stressed that figures for invisible transactions,
particularly for the most recent quarters are liable to
substantial revisions as later information becomes available.


.I 18383
.C
wpi
.W
BELGIAN WHOLESALE PRICES FALL IN JANUARY.
    BRUSSELS, March 4 - Belgian wholesale prices fell by 5.9
pct in January from a year earlier after a 5.7 pct year on year
fall in December, figures from the economics ministry show.
    A ministry spokesman said the wholesale price index, base
1953 and excluding value added tax, stood at 250.9 in January.
This compared with 251.9 in December, 265.5 in Janua~y, 1986
and 267.2 in December, 1985.
    In January 1986, wholesale prices were 3.9 pct lower than a
year earlier.


.I 18384
.C
oilseed
.W
CARGILL U.K. STRIKE TALKS POSTPONED TILL MONDAY.
    LONDON, March 5 - Talks set for today between management
and unions to try to solve the labour dispute at Cargill U.K.
Ltd's Seaforth oilseed crushing plant have been rescheduled for
Monday, a company spokesman said.
    Oilseed processing at the mill has been at a standstill
since December 19.


.I 18385
.C
money-fx;interest;
.W
FRENCH INTERVENTION RATE CUT LIKELY, DEALERS SAY.
    PARIS, March 5 - The Bank of France is likely to cut its
money market intervention rate by up to a quarter point at the
start of next week.  This follows a steady decline in the call
money rate over the past 10 days and signals from the Finance
Ministry that the time is ripe for a fall, dealers said.
    The call money rate peaked at just above nine pct ahead of
the meeting of finance ministers from the Group of Five
industrial countries and Canada on February 22, which restored
considerable stability to foreign exchanges after several weeks
of turbulence.
    The call money rate dropped to around 8-3/8 pct on February
23, the day after the Paris accord, and then edged steadily
down to eight pct on February 27 and 7-3/4 pct on March 3,
where it has now stabilised.
    Dealers said the Bank of France intervened to absorb
liquidity to hold the rate at 7-3/4 pct.
    While call money has dropped by well over a percentage
point, the Bank of France's money market intervention rate has
remained unchanged since January 2, when it was raised to eight
pct from 7-1/4 pct in a bid to stop a franc slide.
    The seven-day repurchase rate has also been unchanged at
8-3/4 since it was raised by a half-point on January 5.
    The Bank of France has begun using the seven-day repurchase
rate to set an upper indicator for money market rates, while
using the intervention rate to set the floor.
    Sources close to Finance Minister Edouard Balladur said
that he would be happy to see an interest rate cut, and dealers
said any fall in the intervention rate was most likely to come
when the Bank of France buys first category paper next Monday,
although an earlier cut could not be excluded.
   A cut in the seven-day repurchase rate could come as early
as tomorrow morning, banking sources said.
    They said recent high interest rates have encouraged an
acceleration in foreign funds returning to France, discouraging
the authorities from making a hasty rate cut. But they also
pointed out that money supply is broadly back on target, giving
scope for a small fall in rates.
    M-3 money supply, the government's key aggregate, finished
1986 within the government's three to five pct growth target,
rising 4.6 pct compared with seven pct in 1985.


.I 18388
.C
wheat;grain;meal-feed;barley;hog;livestock;carcass;soy-meal;potato;
.W
U.K. GRAIN/POTATO FUTURES VOLUME DOWN IN FEBRUARY.
    LONDON, March 5 - Traded volumes for U.K. Grain and potato
futures in February were down on the previous month while
pigmeat and pig cash settlement futures were higher, official
figures show.
    Combined wheat and barley futures trade declined to 892,700
tonnes from 1.19 mln in January, and the value fell to 97 mln
stg from 129 mln, Grain and Feed Trade Association (GAFTA)
figures show.
    A total of 984,960 tonnes were registered for main crop
potato futures in February valued at 157 mln stg, versus
992,760 and 164 mln stg in January.
    Soymeal futures trade totalled 76,340 tonnes against 90,680
in January, and value declined to nine mln stg from 10 mln.
    Nine pigmeat contracts were traded in February, six more
than in the previous month, representing 450 carcases against
150, valued at 29,347 stg against 9,847 stg.
    Pig cash settlement futures saw 201 contracts traded,
against 19 in January, and the value rose to 659,864 stg from
119,610 stg.


.I 18389
.C
interest
.W
BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED.
    FRANKFURT, March 5 - The Bundesbank left credit policies
unchanged after today's regular meeting of its council, a
spokesman said in answer to enquiries.
    The West German discount rate remains at 3.0 pct, and the
Lombard emergency financing rate at 5.0 pct.


.I 18393
.C
sugar
.W
TURKEY TO IMPORT 100,000 TONNES OF CRYSTAL SUGAR.
    ISTANBUL, March 5 - Turkey has announced a tender to import
100,000 tonnes of white crystal sugar with an advertisement in
local newspapers.
    Turkish Sugar Factories said in the advertisement there was
a 50 pct option to increase or decrease the amount and bids
should reach it before March 24.
    The semi-official Anatolian Agency recently quoted Turkish
Minister of Industry and Trade Cahit Aral as saying Turkey will
export 100,000 tonnes of sugar this year and import the same
amount.


.I 18394
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER SMALL ASSISTANCE.
    LONDON, March 5 - The Bank of England said it provided the
money market with a further 20 mln stg of assistance during the
morning. It again bought bills for resale to the market on
April 2 at a rate of 10-15/16 pct. Earlier this morning, it
bought 17 mln stg of bills at the same rate and for resale on
the same date.
    The Bank has thus given a total of 37 mln stg so far today,
which leaves the bulk of a 1.15 billion stg shortage still in
the system. Dealers noted that money market rates again eased
this morning and the Bank may have refused bill offers from the
discount houses at rates below its established dealing levels.


.I 18398
.C
ship;crude;
.W
ICE UNCHANGED AT SOVIET OIL PORT OF VENTSPILS.
    HELSINKI, March 5 - Ice conditions are unchanged at the
Soviet Baltic oil port of Ventspils, with continuous and
compacted drift ice 15 to 30 cms thick, the latest report of
the Finnish Board of Navigation said.
    Icebreaker assistance to reach Ventspils harbour is needed
for normal steel vessels without special reinforcement against
ice, the report said.
    It gave no details of ice conditions at the other major
Soviet Baltic export harbour of Klaipeda.


.I 18400
.C
money-fx;interest;
.W
SWISS OFFERS NEW SERIES OF MONEY MARKET PAPER.
    ZURICH, March 5 - The Swiss Finance Ministry is inviting
tenders for a new series of three-month money market
certificates to raise about 150 mln Swiss francs, the Swiss
National Bank said.
    Bids would be due on March 10 and payment on March 12.
    The last issue of three-month paper conducted on February
12 yielded 2.969 pct.


.I 18401
.C
money-fx
.W
EGYPTIAN CENTRAL BANK DOLLAR RATE UNCHANGED.
    CAIRO, March 4 - Egypt's Central Bank today set the dollar
rate for commercial banks for March 6 at 1.373/87 dollars,
unchanged from the previous rate.


.I 18405
.C
acq
.W
******BAKER INTERNATIONAL CORP SUES HUGHES TOOL SEEKING MERGER COMPLETION.
Blah blah blah.

.I 18407
.C
acq
.W
******USAIR GROUP REJECTS TRANS WORLD AIRLINES TAKEOVER BID.
Blah blah blah.

.I 18408
.C
crude
.W
EARLY MARCH OPEC OUTPUT SEEN WELL BELOW CEILING.
    By Andrew Hill, Reuters
    LONDON, March 5 - OPEC crude oil output in the first few
days of March was running at about 14.7 mln bpd, down from a 16
mln bpd average for February and well below the 15.8 mln bpd
ceiling the group adopted in December, a Reuter survey shows.
    The figures were polled by Reuters correspondents from oil
traders, industry executives and analysts in Europe, the Middle
East, Africa, Latin America and Asia.
    They back recent statements by OPEC ministers that the
group is producing within its ceiling to support the return to
a fixed price system, which came into effect last month.
    OPEC output for the whole of February was about 200,000 bpd
above the ceiling, largely because of overproduction by the
United Arab Emirates and Kuwait, the figures show.
    The UAE, together with the much smaller producer Ecuador,
was also producing above quota in the first days of March, the
survey reveals.
    But such overproduction was compensated for by a sharp fall
in Saudi Arabian output, together with Iran"s inability to
export as much as its quota allows.
    Iraq rejected its OPEC quota of 1.466 mln bpd and produced
1.75 mln bpd in February and early March, the figures showed.
    Saudi output -- excluding movements into stocks -- fell to
3.1 mln bpd in early March from 3.5 mln bpd in February,
against a 4.133 mln bpd quota. The Saudi figures include a
200,000 bpd share of Neutral Zone production.
    Kuwait, which has consistently denied quota violations, was
estimated to be pumping 1.4 mln bpd in February and 1.15 in
early March -- both figures including 200,000 bpd as its share
of Neutral Zone output -- against its 948,000 bpd quota.
    Reports of customer resistance to fixed prices set by some
OPEC states were reflected in output from Qatar and Nigeria,
both substantially under quota in February and early March.
    Qatar's February output was 230,000 bpd, and this fell to
180,000 bpd in early March compared with its 285,000 bpd quota.
    Industry sources say Japanese buyers are resisting Qatar"s
prices and Gulf Arab oil states have pledged to make up for any
shortfall in sales which a fellow Gulf state suffers.
    Nigeria's early March output was about one mln bpd, down
from 1.14 mln bpd in February and its quota of 1.238 mln bpd.
    Industry sources say Nigeria's customers believe its Bonny
grades are overpriced compared with compatible Brent crudes
from the U.K. North Sea.
    Country-by-country production figures are as follows, in
mln bpd -
 COUNTRY        CURRENT        FEBRUARY    QUOTA
 ALGERIA        0.64           0.64        0.635
 ECUADOR        0.26           0.26        0.210
 GABON          0.15           0.15        0.152
 INDONESIA      1.16           1.16        1.133
 IRAN           1.80           2.20        2.255
 IRAQ           1.75           1.75        1.466
 KUWAIT         1.15           1.40        0.948
 LIBYA          0.95           0.95        0.948
 NIGERIA        1.00           1.14        1.238
 QATAR          0.18           0.23        0.285
 SAUDI ARABIA   3.10           3.50        4.133
 UAE            1.10           1.15        0.902
 VENEZUELA      1.50           1.50        1.495
 TOTAL          14.7           16.0        15.8



.I 18412
.C
acq
.W
BAKER <BKO> SUES TO FORCE HUGHES <HT> MERGER.
    HOUSTON, March 5 - Baker International corp said it has
filed suit in state court in Houston to compel Hughes Tool Co
to complete its proposed merger with Baker.
    Late yesterday, Hughes said it had terminated the merger
agreement because Baker would not agree to an alternative
divestiture plan devised by Hughes.  Hughes' board had
previously found unacceptable a U.S. Justice Department consent
decree that would have required broader divestitures.
    Baker said it has not obtained any satisfactory explanation
from Hughes of its objections to the provisions of the Justice
Department consent decree.
    Hughes yesterday adjourned the special meeting at which
shareholders were to vote on the merger without permitting the
counting of votes on the deal.  Baker said it believes the vote
was overwhelmingly in favor of the merger.
    Baker said the new terms that Hughes proposed for the
merger, as an alternative to the consent decree, were "more
burdensome" than those of the consent decree themselves.
    Baker said divestitures under the consent decree would
reduce revenues for the combined company by about 65 mln dlrs
or three pct.
    Baker said it will continue to pursue the divestitures of
the units named in the consent decree.
    It said its suit names as defendants Hughes and certain of
its directors and seeks either an injunction forcing Hughes to
live up to the merger agreement or "substantial" monetary
damages it did not name.
    Baker said it believes the merger to be in the best
interests of shareholders of both companies.


.I 18413
.C
interest
.W
SPAIN DEREGULATES BANK DEPOSIT INTEREST RATES.
    MADRID, March 5 - Spain's Finance Ministry deregulated bank
deposit rates in an effort to raise competition among banks and
bring legislation into line with the European Community (EC), a
ministry spokesman said.
    The measure was published today in the Official State
Gazette. It takes effect tomorrow and lifts restrictions on
rates, now limited to six pct on deposits of up to 180 days.
    The government also enacted a decree cutting to one pct
from 13 pct the proportion of total assets which banks must
lend at favourable rates to industries classified "of public
interest."
    Some bankers expect the deregulation of rates to result in
a 20 pct drop in profits this year.
    Secretary of State for the Economy Guillermo de la Dehesa
told Reuters in a recent interview the reduction in fixed asset
investments would offset losses from the rate liberalisation.


.I 18414
.C
acq
.W
USAIR <U> REJECTS TWA <TWA> TAKEOVER BID.
    WASHINGTON, March 5 - USAir Group Inc said its board has
rejected Trans World Airlines Inc's offer to acquire USAir for
52 dlrs per share in cash as grossly in adequate and not in the
best interests of USAir shareholders, employees or passengers.
    The company said the unsolicited bid by the Carl C.
Icahn-led TWA was "highly conditional."
    USAir said its board and that of Piedmont Aviation Inc
<PIE> met separately yesterday to consider USAir's offer to
acquire 50.1 pct of Piedmont for 71 dlrs per share and
remaining shares for 1.5 to 1.9 common shares each, valued at
about 73 dlrs per share based on the average closing price of
USAir common during a period just before the merger.
    The company said it is continuing talks with Piedmont on
arriving at a definitive merger agreement and the two companies
hope to reach one very shortly.
    USAir said "In light of the highly conditional nature and
other terms of the TWA offer, the timing of the offer and the
circumstances under which it was made, USAir Group believes
that the purpose of the TWA offer is to interfere with USAir
Group's proposed acquisition of Piedmont.
    "TWA's proposal is nothing more than an attempt by Carl
Icahn to disrupt at the eleventh hour USAir Group's acquisition
of Piedmont, a transaction which the USAir Group board views as
most beneficial to USAir Group shareholders, employees and
passengers and which Mr. Icahn obviously regards as contrary to
his own personal interests."
    USAir said its board has authorized counsel to explore all
appropriate legal remedies against what it called TWA's
last-minute attempt to interfere with USAir Group's acquisition
of Piedmont.
    The company said conditions to the TWA offer include TWA
obtaining financing, the USAir board redeeming defensive rights
issued to shareholders last year and acting to render the "fair
price" provision contained in USAir's charter inapplicable to
the TWA offer and Transportation Department approval.
 Reuter...

.I 18418
.C
jobs
.W
U.S. FIRST TIME JOBLESS CLAIMS FALL IN WEEK.
    WASHINGTON, March 5 - New applications for unemployment
insurance benefits fell to a seasonally adjusted 332,900 in the
week ended Feb 21 from 368,400 in the prior week, the Labor
Department said.
    The number of people actually receiving benefits under
regular state programs totaled 3,014,400 in the week ended Feb
14, the latest period for which that figure was available.
    That was up from 2,997,800 the previous week.
     


.I 18419
.C
earn
.W
JAGUAR SEES STRONG GROWTH IN NEW MODEL SALES.
    LONDON, March 5 - Jaguar Plc <JAGR.L> is about to sell its
new XJ-6 model on the U.S. And Japanese markets and expects a
strong reception based on its success in the U.K., Chairman Sir
John Egan told a news conference.
    Commenting on an 11 pct growth in 1986 group turnover to
830.4 mln stg and pre-tax profits at 120.8 mln stg, slightly
below 1985's 121.3 mln, Egan said Jaguar aimed at an average
profit growth of 15 pct per year. However, the introduction of
the new model had kept this year's pre-tax profit down.
    Jaguar starts selling XJ-6 in the U.S. In May and plans to
sell 25,000 of its total 47,000 production there in 1987.
    U.S. Sales now account for 65 pct of total turnover,
finance director John Edwards said.
    A U.S. Price for the car has not been set yet, but Edwards
said the relatively high car prices in dollars of West German
competitors offered an "umbrella" for Jaguar. He added the XJ-6
had also to compete with U.S. Luxury car producers which would
restrict the car's price.
    Jaguar hedges a majority of its dollar receipts on a
12-month rolling basis and plans to do so for a larger part of
its receipts for longer periods, John Egan said.
    In the longer term, capital expenditure will amount to 10
pct of net sales. Research and development will cost four pct
of net sales and training two pct.
    Jaguar builds half of its cars and buys components for the
other half. The firm is in early stages of considering the
building of an own press shop in Britain for about 80 mln stg,
but Egan said this would take at least another three years
    On the London Stock Exchange, Jaguar's shares were last
quoted at 591p, down from 611p at yesterday's close, after
reporting 1986 results which were in line with market
expectations, dealers said.
 REUTER...

.I 18421
.C
wheat;grain;
.W
CCC ACCEPTS BONUS BID ON WHEAT FLOUR TO IRAQ.
    WASHINGTON, March 5 - The Commodity Credit Corporation,
CCC, has accepted bids for export bonuses to cover sales of
25,000 tonnes of wheat flour to Iraq, the U.S. Agriculture
Department said.
    The department said the bonuses awarded averaged 116.84
dlrs per tonne.
    The shipment periods are March 15-April 20 (12,500 tonnes)
and April 1-May 5 (12,500 tonnes).
    The bonus awards were made to Peavey Company and will be
paid in the form of commodities from CCC stocks, it said.
    An additional 175,000 tonnes of wheat flour are still
available to Iraq under the Export Enhancement Program
initative announced January 7, 1987, the department said.


.I 18422
.C
crude
.W
******DIAMOND SHAMROCK RAISES CRUDE POSTED PRICES ONE DLR, EFFECTIVE MARCH 4, WTI NOW 17.00 DLRS/BBL.
Blah blah blah.

.I 18423
.C
earn
.W
NORD RESOURCES CORP <NRD> 4TH QTR NET.
    DAYTON, Ohio, March 5 -
    Shr 19 cts vs 13 cts
    Net 2,656,000 vs 1,712,000
    Revs 15.4 mln vs 9,443,000
    Avg shrs 14.1 mln vs 12.6 mln
    Year
    Shr 98 cts vs 77 cts
    Net 13.8 mln vs 8,928,000
    Revs 58.8 mln vs 48.5 mln
    Avg shrs 14.0 mln vs 11.6 mln
    NOTE: Shr figures adjusted for 3-for-2 split paid Feb 6,
1987.


.I 18424
.C
copper
.W
NO QUAKE DAMAGE AT CHUQUICAMATA - MINE SPOKESMAN.
    SANTIAGO, March 5 - The earthquake which hit northern Chile
today, registering 7.0 on the open-ended Richter scale, caused
no damage to the copper mine at Chuquicamata, a mine spokesman
said.
    Chuquicamata public relations director Guillermo Barcelo
told Reuters by telephone from the mine that the quake had
caused no problems and operations continued as usual.
    A spokesman for the state Chilean Copper Commission in
Santiago confirmed there had been no damage at Chuquicamata.


.I 18425
.C
crude;nat-gas;
.W
ORBIT INCREASES OIL AND GAS RESERVE VALUES.
    CALGARY, Alberta, March 5 - <Orbit Oil and Gas Ltd> said
the value of its oil and gas reserves increased by 19 pct to
52.6 mln dlrs from 44.2 mln dlrs reported at year-end 1985,
according to an independent appraisal.
    Orbit said it has reserves of 2.4 mln barrels of oil and
natural gas liquids and 67.2 billion cubic feet of natural gas.
    In addition, 75 pct owned <Sienna Resources Ltd> has
Canadian reserves of 173,000 barrels of oil and 1.6 bcf of
natural gas with a current value of 2.2 mln dlrs, Orbit said.


.I 18426
.C
wheat;grain;
.W
CCC ACCEPTS BONUS BID ON SEMOLINA TO EGYPT.
    WASHINGTON, March 5 - The Commodity Credit Corporation,
CCC, has accepted a bid for an export bonus to cover a sale of
2,000 tonnes of semolina to Egypt, the U.S. Agriculture
Department said.
    The department said the bonus was 233.91 dlrs per tonne and
was made to International Multifoods Corp. The bonus will be
paid in the form of commodities from CCC stocks.
    The semolina is for shipment during June 1987, it said.
    An additional 13,000 tonnes of semolina are still available
to Egypt under the Export Enhancement Program initiative
announced on August 6, 1986, it said.


.I 18428
.C
acq
.W
FIVE GROUPS APPLY TO BUY FRENCH TELEPHONE GROUP.
    PARIS, March 5 - Five consortia have applied to buy the
French state-owned telephone equipment manufacturer <Cie
Generale de Constructions Telephoniques (CGCT)>, which will
give the owners control of 16 pct of the French telephone
switching market, sources close to Finance Minister Edouard
Balladur said.
    The French government has given itself until the end of
April to decide which applicant will be accepted, they added.
    While several foreign groups have said they want to gain a
foothold in the French market, their potential stake in CGCT is
limited to 20 pct under privatisation laws passed last year,
with 80 pct to be left in French hands.
    The Finance Ministry sources gave no details of the groups
interested in CGCT, but several have publicly announced their
candidacies.
    U.S. Telecommunications giant American Telephone and
Telegraph Co <T.N> which has been at the centre of the two-year
battle for CGCT, has teamed up with the Dutch-based <Philips
Telecommunications Industrie B.V.>, a subsidiary of NV Philips
Gloeilampenfabriek <PGLO.AS> and <Societe Anonyme de
Telecommunications> (SAT) to present a joint bid, in
association with holding company Cie du Midi SA <MCDP.P> and
five French investment funds.
    A second bid has come from the West German electronics
group Siemens AG <SIEG.F>, which hopes to take a 20 pct stake
in CGCT, with the French telecommunications <Jeumont-Schneider>
taking the remaining 80 pct.
    Sweden's <AB LM Ericsson> has also submitted a bid for the
maximum 20 pct permitted, in association with French defence
electronics group <Matra>, which would hold between 40 and 49
pct, and construction group <Bouygues>.
    Matra has already acquired CGCT's private telephone
business.
REUTER...

.I 18430
.C
ship
.W
BLIZZARD CLOSES BOSPHORUS.
    ISTANBUL, March 5 - Blizzard conditions halted shipping
through the Bosphorus waterway and piled snow up to 70 cms deep
in central Istanbul, paralysing the city for the second day
running.
    Snow whipped by 48 kph winds continued to fall on Istanbul
and northwest Anatolia after 36 hours and weather reports
predicted no relief for another two days.
    Port officials said at least six large vessels in the Black
Sea and 13 in the Sea of Marmara were waiting for conditions to
improve.
    Istanbul's Ataturk international airport has been closed
since yesterday.


.I 18431
.C
acq
.W
JAPAN FUND <JPN> SEEKERS CONFIDENT OF FINANCING.
    NEW YORK, March 5 - The <Sterling Grace Capital Management
L.P.> group said it is confident financing can be arranged if
The Japan Fund's board recommend's the group's acquisition
proposal.
    The group, which also includes <Anglo American Security
Fund L.P.> and T.B. Pickens III, Tuesday proposed an entity it
controls acquire for cash all the assets of Japan Fund for 95
pct of the fund's aggregate net asset value.
    The group said it has had a number of meetings over the
past few days with domestic and overseas financial institutions.
    The Sterling Grace Capital group said certain of these
institutions have expressed serious interest in providing
financing for the proposed acquisition of Japan Fund, "adding
we are reasonably confident that the financing can be quickly
arranged if the Japan Fund's board of directors is willing to
recommend the transaction to shareholders."


.I 18434
.C
earn
.W
PEGASUS GOLD INC <PGULF> 3RD QTR DEC 31 NET.
    VANCOUVER, British Columbia, March 5 -
    Shr profit 20 cts vs loss two cts
    Net profit 2,665,000 vs loss 202,000
    Revs 12,141,000 vs 5,993,000
    Nine mths
    Shr profit 35 cts vs loss 11 cts
    Net profit 4,653,000 vs loss 1,167,000
    Revs 35.1 mln vs 18.0 mln


.I 18438
.C
earn
.W
<KELTIC INC> YEAR NET.
    TORONTO, March 5 -
    Shr 99 cts vs 1.25 dlrs
    Net 418,733 vs 235,572
    Revs 2,777,425 vs 2,024,116
    Note: 1986 shr after November, 1986 600,000 class A
subordinate floating share issue


.I 18440
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN HELP, OFFERED FACILITIES.
    LONDON, March 5 - The Bank of England said it had given the
money market 206 mln stg of assistance this afternoon and
offered the discount houses borrowing facilities to take out
the rest of the 1.10 billion stg shortage, revised down from an
initial 1.15 billion estimate.
    It made no alteration to its established dealing rates,
buying 95 mln stg of band one bank bills at 10-7/8 pct and 111
mln of band two bank bills at 10-13/16 pct. This brings the
Bank's total assistance so far today to 243 mln stg.


.I 18442
.C
acq
.W
E.F. HUTTON <EFH> STARTS PUROLATOR <PCC> BID.
    NEW YORK, March 5 - E.F. Hutton Group Inc said it has
started its previously announced offer to purchase up to
6,332,471 common shares of Purolator Courier Corp at 35 dlrs
each.
    In a newspaper advertisement, the company said the offer,
proration period and withdrfawal rights will expire April One
unless extended.  The offer is conditioned on receipt of at
least 5,116,892 Purolator shares, or a 66.7 pct interest, and
is the first step in a merger agreement that has been approved
by the Purolator board.
    Hutton said it reserves the right to buy more than
6,332,471 shares but has no present intention of doing so.  It
said it may waive the condition that at least 5,116,892 shares
be tendered as long as it received at least a 50.1 pct
interest.  If it were to receive fewer shares than that, it
said it would only purchase sharesd with the consent of
Purolator.


.I 18443
.C
money-fx
.W
YEUTTER PUTS CURRENCY BURDEN ON TAIWAN, KOREA.
    NEW YORK , March 5 - Responsibility for the appreciation of
the Taiwan dollar and the South Korean Won lies soley with
those countries, said U.S. trade representative Clayton Yeutter
    Speaking to the Asia Society, Yeutter said that it is in
those countries' own long-term interest to raise the value of
their currencies against the dollar.
    Yeutter was responding to a question about what the U.S.
could do to encourage appreciation of those currencies against
the dollar in order to reduce the large U.S. trade deficits
with Taiwain and Korea.
    "An undervalued currency will help those countries' exports
in the short term, but in the long run they have to be
concerned about how they are perceived in the international
business community," Yeutter said.
    For Taiwan, Yeutter said that with its per capita trade
surplus with the U.S., much larger than that of Japan's, and
with huge foreign exchange reserves, it was difficult to defend
the high import tarrifs and other barriers that prevail in that
country.
    He also said that the south Korean Won should begin to move
to reflect underlying economic fundamentals, "otherwise in two
or three years' time, Korea will be in the same situation that
prevails in Taiwan."
    Turning to the U.S. deficit with Japan of more than 50
billion dlrs, Yeutter said that this situation was not
sustainable.
    "Something must give soon. If not, there is a great threat
of U.S. legislative action to counteract that trend," Yeutter
said.


.I 18444
.C
earn
.W
PRINCEVILLE DEVELOPMENT CORP <PVDC> YEAR LOSS.
    PRINCEVILLE, Hawaii, March 5 -
    Shr diluted loss 31 cts vs profit 17 cts
    Net loss 2,806,005 vs profit 1,513,395
    Revs 15.0 mln vs 10.4 mln
    Avg shrs diluted 8,982,754 vs 8,804,899
    NOTE: Current year includes loss of 3.4 mln dlrs from
takeover defense expenses. Also includes losses of 1.8 mln dlrs
vs 332,000 dlrs from equity in limited partnerships.


.I 18445
.C
acq
.W
ORANGE-CO <OJ> HOLDER RAISES STAKE.
    LAKE HAMILTON, Fla., March 5 - Orange-Co Inc said its
largest shareholder, <Summit Resoureces Inc>, has increased its
stake to 15 pct from 14 pct and now owns 644,727 shares.


.I 18446
.C
earn
.W
HORIZON CORP <HZN> 4TH QTR NET.
    FOUNTAIN HILLS, Ariz., March 5 -
    Oper shr profit 1.66 dlrs vs loss eight cts
    Oper net profit 12.0 mln vs loss 572,000
    Revs 27.4 mln vs 4,311,000
    Year
    Oper shr profit 1.36 dlrs vs loss 43 cts
    Oper net profit 9,817,000 vs loss 2,433,000
    Revs 35.0 mln vs 13.8 mln
    Avg shrs 7,224,000 vs 6,731,000
    NOTE: 1985 net includes tax credits of 492,000 dlrs in
quarter and 2,433,000 dlrs in year.
    1985 net both periods excludes 168,000 dlr loss from
discontinued operations.
    1986 net both periods includes pretax gain 21.8 mln dlrs
from sale of remaining interest in Paradise Hills, N.M.,
development.


.I 18447
.C
earn
.W
<INTERNATIONAL THOMSON ORGANISATION LTD> YEAR.
    TORONTO, Mar 5 -
    Shr 33p vs 38p
    Net 97 mln vs 111 mln
    Revs 1.71 billion vs 1.76 billion
    NOTE: Figures in sterling.
    Share results after deducting preferred share dividends of
one mln pounds sterling in 1986.


.I 18451
.C
earn
.W
EQUATORIAL COMMUNICATIONS CO <EQUA> 4TH QTR LOSS.
    MOUNTAIN VIEW, Calif., March 4 -
    Shr loss 3.84 dlrs vs nil
    Net loss 56,879,000 vs profit 23,000
    Rev 10.3 mln vs 17.7 mln
    Year
    Shr loss 4.60 dlrs vs profit 14 cts
    Net loss 67,818,000 vs profit 1,807,000
    Rev 50.9 mln vs 56.1 mln
    Avg shares 14,734,000 vs 12,801,000
    NOTE: Fourth qtr net includes a one-time restructuring
charge of 45.2 mln dlrs. 1985 net income includes extraordinary
gain of 3.2 mln dlrs, or 25 cts.


.I 18453
.C
earn
.W
******INTERNATIONAL THOMSON ORGANISATION LTD YEAR SHR 33P VS 38P.
Blah blah blah.

.I 18456
.C
acq
.W
TRIMEDYNE <TMED> TO SPIN OFF STAKE IN UNIT.
    SANTA ANA, Calif., March 5 - Trimedyne Inc said it will
distribute one Class B common share of <Automedix Sciences Inc>
for each four Trimedyne shares held of record on March Nine.
    The company said in the spinoff it is distributing its
entire 44 pct interesdt in Automedix.  The spun-off stock will
not be saleable for 13 months, the company said.


.I 18459
.C
earn
.W
CASEY'S GENERAL STORES INC <CASY> 3RD QTR JAN 31.
    DES MOINES, Iowa, March 5 -
    Shr 16 cts vs 13 cts
    Net 1,900,000 vs 1,600,000
    Sales 68.2 mln vs 69.6 mln
    Nine mths
    Shr 60 cts vs 43 cts
    Net 7,100,000 vs 4,700,000
    Sales 214.0 mln vs 219.5 mln


.I 18461
.C
wheat;grain;barley;corn;
.W
FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED.
    PARIS, March 5 - French operators have requested licences
to export 40,000 tonnes of free market feed wheat, 32,500
tonnes of soft bread wheat, 375,000 tonnes of barley and
465,000 tonnes of maize at today's European Community tender,
trade sources here said.
    Rebates requested ranged between 134 and 136.50 European
currency units (Ecus) a tonne for the feed wheat, 137.39 and
141.50 Ecus a tonne for the bread wheat, 137.93 and 142.95 Ecus
for the barley and 133.75 and 140.25 Ecus for the maize.


.I 18463
.C
crude
.W
DIAMOND SHAMROCK <DIA> RAISES CRUDE OIL POSTINGS.
    NEW YORK, MAR 5 - Diamond Shamrock said it raised its
posted prices for all grades of crude oil one dlr a barrel,
effective yesterday.
    The one dlr increase brings West Texas Intermediate, WTI
the U.S. benchmark crude, to 17.00 dlrs a bbl, the company
said.
    Diamond Shamrock joined Sun Co, Coastal, Citgo and Murphy
Oil in raising crude oil posted prices one dlr a barrel
yesterday.


.I 18464
.C
earn
.W
OAK HILL SPORTSWEAR CORP <OHSC> 4TH QTR NET.
    NEW YORK, March 5 -
    Shr 27 cts vs 28 cts
    Net 1,026,000 vs 1,025,000
    Sales 27.8 mln vs 25.4 mln
    Year
    Shr 95 cts vs 16 cts
    Net 3,682,000 vs 598,000
    Sales 102.1 mln vs 100.4 mln
    Avg shrs 3,858,000 vs 3,700,000


.I 18465
.C
earn
.W
OAK INDUSTRIES INC <OAK> 4TH QTR LOSS.
    SAN DIEGO, March 5 -
    Oper shr loss five cts vs loss 50 cts
    Oper net loss 3,862,000 vs loss 15,900,000
    Sales 42.6 mln vs 38.8 mln
    Avg shr 72.1 mln vs 31.7 mln
    Year
    Oper shr loss 51 cts vs loss 2.10 dlrs
    Oper net loss 30.3 mln vs 51.3 mln
    Sales 151.7 mln vs 153.1 mln
    Avg shrs 59.4 mln vs 24.4 mln
    Backlog 57.1 mln vs 52.9 mln
    NOTES: Operating losses exclude profits from discontinued
operationgs of 1,000,000 dlrs, or one cent a share, vs
2,493,000 dlrs, or eight cts a share, in quarter and 65.0 mln
dlrs, or 1.09 dlrs a share, vs 13.7 mln dlrs, or 56 cts a
share, in year
    1986 year operating loss also excludes extraordinary gain
of of 25.6 mln dlrs, or 43 cts a share
    Backlog, which includes only orders to be shipped within 12
mths, was 63.0 mln dlrs on January 31. Orders to be shipped
beyond 12 mths were 27.6 mln dlrs vs 17.1 mln dlrs at December
31


.I 18466
.C
earn
.W
REGIS CORP <RGIS> REGULAR DIVIDEND SET.
    MINNEAPOLIS, March 5 -
    Qtly div 4-1/2 cts vs 4-1/2 cts prior
    Pay April 15
    Record March 24


.I 18471
.C
acq
.W
MANNESMANN SEEKS STAKE IN U.S. FIRM.
    DUESSELDORF, March 5 - Mannesmann AG <MMWG.F>, the
diversified engineering and pipe-making group, is interested in
taking a stake in a U.S. Company or companies but has not yet
found a suitable firm, a spokesman said in reply to questions.
    Mannesmann managing board chairman Werner Dieter told the
business weekly Wirtschaftswoche in an interview that
Mannesmann wanted to invest in a U.S. Company in order to
strengthen its presence on the U.S. Market.
    Dieter said Mannesmann would act quickly when and if it
found a firm in which it wanted to take a stake.
    The Mannesmann spokesman declined to say in which
industrial sector the group may make a U.S. Acquisition or how
big the acquisition might be.
    He also said the group had not yet completed taking over a
stake in car components firm <Fichtel und Sachs AG>.
    Mannesmann had said in January it hoped to take a 37.5 pct
stake in Fichtel und Sachs's holding company, Sachs AG, in the
first quarter. The spokesman said Mannesmann had a letter of
intent on the takeover from the heirs of the company's late
owner but completion has been delayed by legal questions
concerning the inheritance.


.I 18472
.C
earn
.W
AMERICAN INT'L GROUP INC <AIG> 4TH QTR NET.
    NEW YORK, March 5 -
    Shr 1.83 dlrs vs 77 cts
    Net 296.6 mln vs 120.1 mln
    Year
    Shr 4.90 dlrs vs 2.76 dlrs
    Net 795.8 mln vs 420.5 mln
    NOTE: Includes gains of 139.2 mln vs 46.8 mln in year and
94.0 mln vs 11.6 mln from capital gains from investments.


.I 18473
.C
earn
.W
SYSTEMS FOR HEALTH CARE IN ONE-FOR-50 SPLIT.
    CHICAGO, March 5 - Systems for Health Care Inc said it
repositioned the company through a one-for-50 reverse stock
split.
    It said there are now 3,002,500 common shares outstanding
with a quoted price of about 7/8 bid, compared to 150,125,000
shares outstanding prior to the split.
    In another recent development, Systems for Health Care
formally changed its name to its present form from Orcas Corp.


.I 18478
.C
earn;crude;
.W
ROYAL DUTCH/SHELL U.S. EARNINGS SHARPLY LOWER.
    LONDON, March 5 - Royal Dutch/Shell Group <RD.AS> earnings
for 1986 from the U.S. Fell sharply because of difficult market
conditions, lower crude and gas prices and also due to
different accounting methods, Shell chairman Peter Holmes said.
    The Shell Oil dollar net income fell 47 pct in the year,
while the additional effect of currency movements reduced the
contribution to group net income by 57 pct to 472 mln stg.
    The group earlier reported a drop in net income for the
year to 2.54 billion stg from 3.03 billion previously, with
lower crude prices outweighing the effect of increased sales by
volume.
    Although the figures were lower, they were nonetheless at
the top end of market forecasts. Shell Transport and Trading
Plc <SC.L> shares, the U.K. Arm of the group, rose to 11.39 stg
from a close last night of 11.06 stg. Analysts noted that a
general collapse in exploration and production volumes was
partially offset by earnings from chemicals rising to 462 mln
stg from 205 mln in 1985.
    Also, a windfall tax credit and lower than expected
currency losses had added about 100 mln stg onto fourth quarter
results, which was the main reason for the figures exceeding
forecasts, industry analyst Chris Rowland of Barclays de Zoete
Wedd noted.
    However, he added there could well be a sharp fall in
performance in the first quarter of 1987, due to the
improbability that the group would be able to repeat the high
refining and marketing margins of first quarter 1986.
    The impact of recovering oil prices would come through
faster on the downstream side than on the upstream as such a
high proportion of upstream activity centred on gas, which
typically reacted to oil price changes with about a half-year
lag, analysts said.
    Holmes said that in the upstream U.S. Sector the third
quarter of 1986 had been the worst of all.
    Only two of the oil majors had managed to make a profit in
the period, with Shell Oil being one of them. The decrease in
U.S. Earnings had been accentuated by tax rates but the group
had increased share to become volume market leader, Holmes
added.
    Continued low crude oil prices would continue to subdue
U.S. Exploration activity. "Exploration is currently pretty
flat. We are going to go on, but at 16-18 dlrs there will be no
massive upturn," he said.
    A renewal of exploration in high cost areas of the North
Sea and the U.S. Requires prices of around 25 dlrs a barrel.
    Ultimately this would lead to a rise in U.S. Imports. "If
you are not exploring you are not going to find anything," he
noted.
    U.S. Oil production had dropped some half mln barrels a day
(bbd) in 1986 and would continue to fall if the price stayed
below 20 dlrs a barrel.
    This favored OPEC's attempts to stabilise prices, as the
lower the price the more likelihood there was of non-OPEC
marginal production shutting down. "OPEC has done pretty
extraordinarily well...Everything is moving in (its) direction,"
he added.


.I 18481
.C
interest
.W
BANKERS WELCOME SPANISH RESERVE REQUIREMENT HIKE.
    MADRID, March 5 - Bankers welcomed the Bank of Spain's
decision to raise the reserve requirement for banks and savings
banks, saying it reflected the socialist government's
determination not to ease up in the fight against inflation
despite the painful social effects of four years of austerity.
    The central bank last night raised the requirement by one
percentage point to 19 pct from March 13, saying that excess
liquidity threatened money supply and inflation targets.
    Bankers said the move represented a change of tactic by the
Bank, which until now has relied on raising interest rates to
choke off money supply growth.
    "I think it's a good measure," a senior foreign banker said.
"It's a faster way to get the job done than using interest rates
and avoids unpleasant effects on other areas of the economy."
    "It shows that the political will is very strong. They know
that controlling inflation will make industry more competitive
and bring down unemployment in the long run," he added.
    The head of another foreign bank said that only a month
ago, the Bank of Spain had dismissed his suggestion of a rise
in reserve requirements, preferring to pursue its strategy of
raising interest rates.
    But bankers said the high real interest rates on offer now
-- around eight pct for overnight funds -- was attracting money
from abroad, strengthening the peseta and making Spanish
exports less competitive.
    The government says industry's competitiveness is also
being hit hard by inflation. At 8.3 pct last year, the rate was
way above that of Spain's major trading partners in the
European Community, which it joined a year ago.
    To help meet this year's target of five pct, it is
insisting pay rises stay at that level, setting the stage for
clashes with trade unions, who say they have made enough
sacrifices.
    Demonstrations by workers, students and farmers, whose
demands essentially involve more government spending, have
become an almost daily occurrence. But Prime Minister Felipe
Gonzalez insists that the state is doing as much as it can.
    Bankers said the reserve requirement increase could have
some impact on commercial lending rates but should not hit the
money market too hard.
    The Bank of Spain, which only yesterday raised its key
overnight call money rate to 13.5 pct, left it unchanged at
today's auction. The rate has been increased nine times since
the start of the year, when it was below 12 pct.
    Bankers said commercial lending rates were set to rise in
any case with the end of the six pct maximium interest rate
banks can offer for time deposits of up to six months.
    The measure will take effect tomorrow, following the
publication of the decree in today's official gazette. Bankers
say the liberalisation will increase the cost of funds and,
inevitably, push lending rates higher.
    A companion measure, reducing the proportion of funds which
banks must invest in specific areas, also takes effect
tomorrow. Officials said when the cut was approved last month
that it was aimed partly at compensating banks for higher
interest rates.


.I 18482
.C
earn
.W
GAMBRO AB <GAMB ST> 1986 YEAR.
    STOCKHOLM, Mar 5 - Group profit after net financial items -
133.5 mln crowns vs 101 mln.
    Sales 1.61 billion vs 1.51 billion.
    Proposed dividend 0.80 crowns vs 0.40 crowns.


.I 18484
.C
acq
.W
******TRANSPORTATION AGENCY GIVES FINAL OKAY FOR US AIR PACIFIC SOUTHWEST ACQUISITION.
Blah blah blah.

.I 18490
.C
gold
.W
S AFRICA MINE MANAGERS FACE CHARGES IN DISASTER.
    JOHANNESBURG, March 5 - Seven managers and employees at
General Mining Union Corp Ltd's Kinross Mines Ltd will face
charges of culpable homicide following last year's disaster
when 177 gold miners died, the Attorney General's Office said.
    The mineworkers were killed last September at Kinross when
a fire set off toxic fumes which suffocated miners underground.
    Three of the accused face alternative charges of breaking
safety regulations set out in the Mines and Works Act.
    The spokesman said the case would probably be heard in
Witbank Regional Court, near Kinross, in mid-May.


.I 18491
.C
wheat;grain;copper;
.W
WESTERN CANADA HURT BY INTERNATIONAL FORCES.
    OTTAWA, March 5 - Western Canada's resource-based economy
is being hurt by international market forces and there is
little Ottawa can do about it, Finance Minister Michael Wilson
said.
    "If you can tell me how we can get the international energy
price up and how we can get the price for copper up and how we
can get the price for wheat up, then we will listen," Wilson
told the House of Comnons Finance Committee.
    Although under pressure from oil companies and wheat
farmers for help in battling depressed commodity prices, Wilson
said it has to be recognized the area was a "prisoner of market
forces outside the boundaries of this country."
    Wilson, appearing before the committee to discuss the
government's spending estimates released earlier this week,
said the government is doing what it can in the region, citing
more than 3.5 billion dlrs in aid for western agriculture.
    "Those resources are a reflection of very real concerns on
our part in dealing with a very difficult problem," Wilson said
in response to questions about management of the economy from
opposition party members.
    He said the long term answer for depressed regions of the
country was reaching a free trade pact with the United States,
which he claimed would improve the outlook for Western Canada.


.I 18496
.C
earn
.W
AMERICAN SOFTWARE <AMSWA> SETS STOCK SPLIT.
    ATLANTA, March 5 - American Software Inc said its board
declared a three-for-two stock split on Class A and Class B
common shares, payable March 31, record March 16.
    The company said it expects to increase its semiannual
dividend 12.5 pct to six cts per share post-split from eight
cts pre-split.


.I 18497
.C
acq
.W
COMDATA <CDN> IN MERGER AGREEMENT.
    NASHVILLE, Tenn., March 5 - Comdata Network Inc said
it has entered into a letter of intent with a limited
partnership managed by Welsh, Carson, Anderson and Stowe (WCAS)
to merge Comdata into a corproration to be formed by WCAS.
    Comdata said in the merger each share of the company's
stock would be converted at the holders election into either 15
dlrs in cash or a combination of 10 dlrs in cash and a unit of
securities including common stock.
    Comdata said the terms are subject to the condition that
WCAS' affiliate investors would own a minimum of 60 pct of the
fully diluted stock of the new entity.
    Comdata said WCAS and its affiliate investors would commit
50 mln dlrs to buy the securities comprising the new entities
units of securities resulting from the merger in the same
proportions and at the same price as the company shareholders.
    Comdata said the move is subject to execution of definitive
agreement and approval by Comdata shareholders as well as
obtaining up to 200 mln dlrs in debt financing.
    WCAS told Comdata it believes that it can get commitments
for this financing.
   


.I 18504
.C
oilseed;soybean;
.W
SOYBEAN GROUP HEAD URGES USDA ACTION ON LOAN.
    WASHINGTON, March 5 - The Agriculture Department must make
a decision soon on how to change the current U.S. soybean loan
or more soybeans will continue to be forfeited to the
government and foreign soybean production will increase, the
president of the American Soybean Association, ASA, said.
    "The USDA will have to bite the bullet one way or another
... USDA can dodge and dart around it (the soybean loan) as
much as they want, but they have to eventually address this
problem," David Haggard, ASA president, told Reuters.
    USDA is not offering any new soybean loan options, and
Agriculture Secretary Richard Lyng has not consulted ASA on the
soybean loan, Haggard said.
    "I don't know if USDA is really very serious about
addressing the soybean loan problem," he said.
    At ASA's annual winter board of directors meeting here, ASA
leaders refused to change their official position on the  loan
-- still calling for income support at 5.02 dlrs.
    The association backs current bills of Rep. Bill Emerson,
R-Mo. and Sen. Thad Cochran, R-Miss., which call for either a
5.02 marketing loan or a producer option payment.
    Haggard said he does not know what chances the ASA-backed
proposals have but said, "in all honesty, we do not want to see
the farm bill be torn apart."
    He said if USDA feels it cannot withdraw its opposition to
a market loan, there are still numerous ways the USDA could
change the loan without new legislation.
    Making the loan partially in certificates which would not
have to be paid back would be one option, he said.


.I 18506
.C
earn
.W
<WAJAX LTD> YEAR NET.
    TORONTO, March 5 -
    Shr 78 cts vs 1.16 dlrs
    Net 6.7 mln vs 9.5 mln
    Revs 278 mln vs 290 mln


.I 18509
.C
earn
.W
AMERICAN SOFTWARE INC <AMSWA> 3RD QTR JAN 31 NET.
    ATLANTA, March 5 -
    Shr 42 cts vs 19 cts
    Net 2,903,000 vs 1,307,000
    Revs 13.1 mln vs 8,937,000
    Avg shrs 6,877,360 vs 6,874,970
    Nine mths
    Shr 98 cts vs 62 cts
    Net 6,740,000 vs 4,085,000
    Revs 33.9 mln vs 27.8 mln
    Avg shrs 6,875,706 vs 6,605,879


.I 18513
.C
wheat;grain;
.W
NO SOVIET WHEAT BONUS TALK PLANNED FOR MEETING.
    WASHINGTON, March 5 - U.S. Agriculture Secretary Richard
Lyng does not intend to discuss a wheat export enhancement
initiative to the Soviet Union at a cabinet-level Economic
Policy Council meeting set for tomorrow, an aide to Lyng said.
    "He (Lyng) does not intend to bring it up," the aide said,
adding that the subsidy offer remains "dormant."
    Lyng plans to spend "about five minutes" reviewing the status
of farm legislation on Capitol Hill before the Economic Policy
Council, which is responsible for guiding the administration's
economic policy, the aide said.
    The USDA secretary met this morning with members of the
House Foreign Affairs Committee, but the handful of lawmakers
present did not ask whether the administration intended to
offer Moscow a wheat export bonus, the aide said.


.I 18515
.C
acq
.W
BANKAMERICA <BAC> TO SELL GERMAN BANKING UNIT.
    SAN FRANCISCO, March 5 - BankAmerica Corp said it agreed to
sell <Bankhaus Centrale Credit AG>, its German consumer banking
subsidiary, and German credit card operations to <Banco de
Santander> of Spain.
    Terms were not disclosed. The deal is expected to close in
the second quarter, the bank holding company said.
    Bankhaus Centrale Credit, with 31 branches, had total
assets of 927 mln marks at year-end 1986. The credit card
operation services 115,000 Visa card holders and 35,000
merchants in Germany, it said.
    Reached later, a BankAmerica spokesman said the company
would record a pretax gain of 45 mln dlrs from the
transactions.
    The spokesman declined, however, to disclose the price paid
for the operations by Banco de Santander or other terms of the
deal.


.I 18516
.C
reserves
.W
****** French official reserves 375.95 billion francs end Jan (421.00 billion end Dec) - official.
Blah blah blah.

.I 18517
.C
earn
.W
COPLEY PROPERTIES INC <COP> 4TH QTR NET.
    BOSTON, March 5 -
    Shr 30 cts vs 36 cts
    Net 1,211,000 vs 1,428,000
    Revs 1,536,000 vs 1,743,000
    Year
    Shr 1.36 dlrs vs 62 cts
    Net 5,438,000 vs 2,498,000
    Revs 6,567,000 vs 2,971,000
    NOTE: Company began operations after its July 29, 1985
public offering, therefore annual data are not directly
comparable.


.I 18519
.C
earn
.W
UNITIL CORP <UTL> 4TH QTR NET.
    BEDFORD, N.H., March 5 -
    Shr 79 cts vs 72 cts
    Net 581,915 vs 536,040
    Revs 13.9 mln vs 13.3 mln
    Year
    Shr 3.28 dlrs vs 3.21 dlrs
    Net 2,413,407 vs 2,360,048
    Revs 54.9 mln vs 54.2 mln


.I 18520
.C
acq
.W
RYDER <RDR> BUYS BRITISH CALEDONIAN UNIT.
    MIAMI, March 5 - Ryder System Inc said it has acquired
Caledonian Airmotive Ltd from <British Caledonian Group PLC>
for undisclosed terms.
    Caledonian Airmotive repairs and rebuilds aircraft engines.


.I 18525
.C
acq
.W
TRELLEBORG TAKE LARGER SLICE OF BOLIDEN.
    STOCKHOLM, March 5 - Swedish tyres, process equipment and
components firm <Trelleborg AB> said it was taking a larger
stake in mining and metals concern Boliden AB <BLDS.ST> than it
had originally intended.
    Trelleborg had previously announced it was exercising an
option to acquire up to 65 pct of Boliden's voting rights.
    In a statement, the company said they had received offers
of up to 68 pct of the rights, and that they would accept all.


.I 18526
.C
earn
.W
POLAROID <PRD> UP ON REAFFIRMED OPINION.
    NEW YORK, MARCH 5 - Shares of Polaroid Corp rose following
a reiterated recommendation by Merrill Lynch and Co that
focused on strong earnings momentum for the company, traders
said.
    "We have been recommending the stock since it was in the
50s, but we reiterated today because of expectations of strong
earnings momentum, its benefits from the lower dollar and
anticipation of nice gains in margins," Merrill Lynch
analyst Charles Ryan said. He said a negative opinion by
another brokerage house hurt the stock Wednesday, and it can be
bought at a relatively bargain price today.
    Ryan said "you always have to look at Polaroid at its
weakness. Its a volatile stock that has to be caught on
weakness." Polaroid's stock, which gained more than a point
early this morning, was trading at 76-1/8, up 5/8. It was down
over three points Wednesday morning before closing down 7/8.
    "Polaroid is working overtime on production of cameras and
film, so we expect first quarter earnings to be up about 40
pct," Ryan said, estimating earnings of 70 cts a share in the
first quarter compared to 52 cts a share earned a year earlier.
He expects the company to earn four dlrs a share in 1987 as
compared to 3.34 dlrs a share last year.



.I 18527
.C
earn
.W
SWEDISH MATCH AB <SMBS.ST> 1986 YEAR.
    STOCKHOLM, March 5 - Profit after net financial items
    500 mln crowns vs 359 mln
    Sales 10.90 billion crowns vs 10.72 billion
    Proposed dividend 12.50 crowns vs 10.50 crowns


.I 18528
.C
reserves
.W
FRENCH OFFICIAL RESERVES FALL SHARPLY IN JANUARY.
    PARIS, March 5 - French official reserves fell 45.06
billion francs to 375.95 billion at the end of January from
421.00 billion at the end of December, the Finance Ministry
said in a statement.
    It said the fall was largely due to sales of foreign
currency that preceded the January 11 realignment of the
European Monetary System (EMS).
    Foreign currency reserves fell by 8.91 billion francs
during the month, the ministry said.
    This reflected outflows of 10.26 billion francs through
operations of the French exchange stabilisation fund,
counterbalanced by a gain of 1.35 billion francs resulting from
the quarterly adjustment in the value of dollar deposits held
with the European Monetary Cooperation Fund (FECOM).
    But most of the decline reflected a 33.90 billion franc
deficit that France built up during the month with FECOM as a
result of using very short-term financing instruments.
    The Bank of France, in conjunction with the Bundesbank and
other central banks, intervened heavily in foreign exchange
markets between late December and the January 11 EMS accord, in
an attempt to hold down the mark, which was attracting a flight
of funds from the dollar, and simultaneously shore up the
franc.
    On January 11, the mark was revalued by three pct against
the French franc, relieving pressure on the French currency.
    The fall in foreign exchange reserves took these reserves
to 98.83 billion francs at the end of January from 107.74
billion at end December.
    Gold reserves were unchanged at 218.45 billion francs.
    Reserves of European Currency Units fell to 73.25 billion
francs from 75.27 billion at end December.
    Claims on the International Monetary Fund fell 219 mln
francs to 19.31 billion francs.


.I 18530
.C
earn
.W
SL INDUSTRIES INC <SL> 2ND QTR JAN 31 NET.
    MARLTON, N.J., March 5 -
    Oper shr 22 cts vs 20 cts
    Oper net 1,153,000 vs 1,068,000
    Revs 15.7 mln vs 15.8 mln
    Six mths
    Oper shr 38 cts vs 38 cts
    Oper net 2,039,000 vs 2,051,000
    Revs 31.4 mln vs 31.6 mln
    NOTE: exlcudes 145,000 discontinued operations for 1986
oper net for six mths for sale of electronics division.
    Oper shr for qtr and six mths 1986 adjusted for stock split
and dividend distribution in November.


.I 18532
.C
acq
.W
GENERAL REFRACTORIES <GRX> TO SELL OPERATIONS.
    BALA CYNWYD, Pa., March 5 - General Refractories Co said it
agreed to sell its European refractories and building products
operations for about 62 mln dlrs to an Austrian investor group.
    The European operations had sales of 186 mln dlrs in 1985,
the last year for which results have been released, the company
said.
    The sale, to a group headed by Girozentrale Bank of
Austria, is subject to shareholder approval by April 24, 1987,
it said. Its board has approved the deal, it said.
    General Refractories' mineral operations are not affected.


.I 18533
.C
coffee
.W
BRAZIL HAS NO SET COFFEE EXPORT TARGETS - IBC.
    ****RIO DE JANEIRO, March 5 - Brazil has no set target for
its coffee exports following this week's breakdown of
International Coffee Organization talks on export quotas,
President of the Brazilian Coffee Institute, IBC, Jorio Dauster
said.
    He told a press conference Brazil now had to reconsider its
export plans and that the 15.5 mln bag export figure which it
had proposed for itself earlier should no longer be taken as
the country's export target to ICO-member countries.
    The 15.5 mln bag offer had been made on the assumption an
agreement would bring stability to world markets, he added.
    It had been a gesture to ease negotiations, but the lack of
an agreement leaves it no longer valid and exports could be
above or below 15.5 mln bags, he said.
    Dauster said he would talk to producers, exporters and
market analysts before taking any decision on export policy,
but any future policy would be flexible and adjusted to market
conditions.
    "We will not take any short-term decisions which might cause
markets to panic," Dauster added.
    He said it would be a policy which shows Brazil has coffee
to sell and that it could do so without an ICO agreement.
    "Brazil has coffee (to sell) and wants to show that it does
not need an ICO agreement as a crutch," Dauster said.
    Commenting on the breakdown of the talks, Dauster said
consumer proposals would have implied a reduction of one to two
mln bags in Brazil's export quotas.
    "It was a proposal which would lead to a substantial loss
for Brazil and which would be difficult for the country to
recover," he said.
    The consumer proposal to base quotas on a six-year moving
average of exportable production surpluses would lead to
overproduction as countries boosted output to win higher
quotas, he said.
    Dauster rejected reports which said Brazil's inflexibility
had been the cause for the breakdown of talks, noting that its
stance had the backing of 85 pct of producing countries.
    Close links would continue with these producers,
particularly Colombia, Mexico and Francophone African
countries, but Dauster said no joint marketing action was
envisaged at present.
    He also said Brazil currently had no plans to return to a
system of roaster buying contracts, although "no hypothesis has
been abandoned."
    Dauster said he had not yet decided when registrations for
May shipment coffee will be opened.
    He declined comment on whether the IBC will adopt a policy
of opening registrations for up to six months in advance, as
some exporters had suggested.
    He noted export registrations for the first four months of
the year totalled around 5.5 mln bags, more than half the 9.9
mln exported in 1986 when drought reduced the crop to between
11.2 mln and 12 mln bags.
    He said that, although he had heard forecasts of 30 mln
bags for the coming crop, the IBC would not make any estimate
until late April.


.I 18534
.C
earn
.W
PEPSICO <PEP> UPGRADED BY KIDDER PEABODY.
    NEW YORK, March 5 - Kidder Peabody and Co analyst Roy Burry
issued a strong buy recommendation on Pepsico Inc, citing an
improved profit outlook for both domestic soft drinks and
Frito-Lay snack foods.
    Pepsico climbed 7/8 to 34-3/4 on 615,000 shares by
midmorning.
    Burry forecast earnings of 2.00 dlrs per share in 1987 and
2.30 dlrs in 1988. In 1986 the company earned 1.75 dlrs per
share. Burry previously had a sell recommendation on Pepsico.
"We're looking at 10 to 15 pct earnings growth for Frito-lay in
1987, a trend that should continue through the decade."


.I 18536
.C
acq
.W
SHAD SEES PROGRESS ON INSIDER TRADING.
    WASHINGTON, March 5 - Securities and Exchange Commission
chairman John Shad said progress was being made in stopping
insider trading, but the chairman of a House subcommittee with
jurisdiction over securities laws said he was concerned about
conditions on Wall Street.
    "Greed has created a feeding frenzy on Wall Street and in
the process laws are broken and multi-billion dlr corporations
have become easy prey," Rep. Edward Markey, D-Mass, the
chairman of the Telecommunications and Finance said at the
start of a hearing on SEC activities.
    "Congress is understandably nervous. We perceive the
current scandals as a warning of even worse things to come,"
Markey said. "The frenzy and disruption created by merger mania
is particularly distressing."
    Shad said the recent cases involving Ivan Boesky, Dennis
Levine and others was a warning that those who engage in
insider trading were taking a heavy risk of imprisonment, high
fines and disbarment from the securities industry.
    "Insider trading has not been eradicated, but it has been
inhibited and multimillions of dollars of profits that Boesky
and others have been siphoning off the markets are now flowing
through to legitimate investors and traders," Shad said in his
statement.
    Shad said insider trading cases involved only 10 pct or
less of SEC enforcement actions in recent years but they have
increased significantly to 125 cases brought during the past
five years compared to 77 cases in the preceeding 47 years.
    Markey said he did not favor banning takeovers but thought
the tender offer process needed reform including earlier
disclosure of takeover attempts.
    N.J. Rep. Mathew Rinaldo, the senior subcommittee
Republican, said he was introducing legislation to create a
five member commission to study the securities industry for a
year and report its findings and recommendations to Congress.
Commission members would be appointed by the SEC.
    "Its primary mission would be to analyze the extent of
illegal trading on insider trading and to assess the adequacy
of existing surveillance systems and government oversight
operations. The commission would advise Congress as to what
additional resources or civil or criminal remedies are needed
to combat fraud and improve compliance with federal laws,"
Rinaldo said.


.I 18539
.C
crude
.W
OPEC SAYS FEBRUARY OUTPUT UNDER CEILING.
    VIENNA, March 5 - OPEC output in February was "well below"
the 15.8 mln bpd ceiling it set in December and all countries
are strictly adhering to their quotas, the OPEC news agency
Opecna quoted an OPEC secretariat official as saying.
    The official was quoted as saying that lower output was the
result "of member countries' firm determination to defend the
organisation's official price of 18 dlrs per barrel, and to
refrain from selling any quantity below that price."
    The unnamed official was further quoted as saying that no
OPEC meeting was foreseen before the next biannual OPEC session
planned to start on June 25.
    The official gave no figure for February output. The
statement said only that "the reduction in total supplies,
namely actual exports of crude oil and products, plus local
deliveries in member countries, is even more pronounced as
those supplies fell very noticeably during that month."
    "No matter what the pressure on member countries by lifters
to align the official selling price to the ongoing market
price, member countries are, without exception, strictly
adhering to the official selling price in spite of the
financial hardship this may entail," the statement said.
    "The very recent improvement in the price structure is an
indicator of such determination by the organization to stick to
the official selling price," the statement said.
    Free spot market prices rose from around 14.50 dlrs a
barrel in early December last year to near OPEC's official
levels towards the end of the year, after the OPEC pact.
    There has been oil industry speculation that OPEC might
have to hold an extraordinrary meeting prior to its scheduled
June session to discuss reports of overproduction by some
states and strains on the differential matrix, which prices
each OPEC crude according to its quality and distance from main
markets.
    The official said in the statement that no such emergency
session was scheduled "because of member countries' firm
determination to defend the price (system)" agreed in December.
    Opec"s differential committee was to have met in Vienna
starting April 2 but this session has been postponed, with no
new date set, according to an official of the United Arab
Emirates, which chairs the seven-state body.
    Other members are Algeria, Kuwait, Saudi Arabia, Libya,
Nigeria and Qatar.


.I 18540
.C
earn
.W
******CANADIAN IMPERIAL BANK OF COMMERCE 1ST QTR SHARE BASIC 61 CTS VS 64 CTS.
Blah blah blah.

.I 18544
.C
acq
.W
PERKIN-ELMER <PKN> ACQUIRES HIGH TECH FIRM.
    NORWALK, Conn., March 5 - Perkin-Elmer Corp said it
acquired <Atomika Technische Physik>, based in Munich, West
Germany, a high technology concern specializing in surface
science instruments.
    Terms of the acquisition were not disclosed.
    It said Atomika will became a part of its Physical
Electronics Division, based in Eden Prairie, Minn., The
division is part of its Materials Surface Technology Group.


.I 18546
.C
acq
.W
U.S. OKAYS USAIR <U> PACIFIC SOUTHWEST PURCHASE.
    WASHINGTON, March 5 - The U.S. Department of Transportation
said it gave final approval to USAir Group's proposed 400 mln
dlr acquisition of Pacific Southwest Airlines.
    The department said the acquisition is not likely to
substantially lessen competition and would not harm the public
interest.
    The department had given its tentative approval of the
acquisition in January.
    The department said it decided to make final its tentative
decision after reviewing the public response to it.
    The agency said it rejected an assertion by Air North
America, which currently is not operating but plans to start
service to some of the cities served by USAIR and PSA, that the
acquisition would lessen chances of new entry into those
markets by other carriers.
    The agency said Air North America provided no support for
its claim that the transaction would give the two carriers
monopoly power in some markets.
    The transportation agency said Air North America also
failed to show that there are barriers that would prevent new
entrants into those markets or prevent other carriers from
increasing their service.
    The agency noted in its final order that PSA operates
exclusively in the West and Mexico while USAir serves the West
for the most part with some long-haul flights from the East and
Midwest.
    The two carriers serve five point in common; Los Angeles,
San Diego, San Francico, Phoenix and Tucsonm, the agency said.
     The transportation department also rejected a request by
the Teamsters Union, which represents some PSA workers, to
require protections for PSA workers.
    The agency noted that USAir has promised to give protective
benefits to PSA workers and that unions representing PSA
workers have collective bargaining agreements that provide such
protections.


.I 18548
.C
earn
.W
MCI <MCIC> PRESIDENT SEES PROFIT IMPROVEMENT.
    WASHINGTON, March 5 - MCI Communications Corp President
Bert Roberts said he expects MCI's financial performance to
improve in the current quarter compared to the previous
quarter.
    He said American Telephone and Telegraph Co long-distance
rate cuts had cut into MCI's fourth quarter performance but
added: "There's going to be a continuing impact (on profits) but
we expect this quarter to be better than the fourth quarter."
    The current quarter ends March 31.
    For the fourth quarter, MCI reported a 448 mln dlr loss,
due mainly to write-offs and staff reductions.
    Roberts said the ATT long-distance rate reductions, which
had been ordered by the Federal Communications Commission have
had "A significantly negative impact on our profits."
    As reported earlier today, MCI said it plans to ask the FCC
to immediately deregulate ATT, apparently in hopes that an
unregulated ATT would pocket a greater proportion of its
revenues rather than cut rates further.


.I 18551
.C
earn
.W
NATIONAL GYPSUM CO 4TH QTR NET.
    DALLAS, March 5 -
    Net 5,521,000 vs NA
    Revs 358.1 mln vs 359.0 mln
    Year
    Net 55.3 mln vs NA
    Revs 1.43 billion vs 1.34 billion
    NOTE: Current year includes earnings of 49.6 mln dlrs for
the four months ended April 30, 1986. Year-ago earnings not
comparable because of acquisition by Aancor Holdings Inc on
April 29, 1986.


.I 18554
.C
earn
.W
******ZAYRE CORP 4TH QTR SHR 73 CTS VS 60 CTS.
Blah blah blah.

.I 18555
.C
earn
.W
<DET OESTASIATISKE KOMPAGNI A/S> (EAST ASIATIC CO).
    COPENHAGEN, March 5 -
    Results for year 1986 -
    Group pre-tax profit 385 mln crowns vs 380 mln
    Net turnover 14.17 billion crowns vs 16.69 billion
    Dividend eight pct vs nil
    Group profit after tax 16 mln crowns vs 244 mln


.I 18566
.C
earn
.W
<SIGNTECH INC> NINE MTHS JAN 31 NET.
    MISSISSAUGA, Ontario, March 5 -
    Shr 55 cts vs 24 cts
    Net 1.9 mln vs 800,000
    Revs 17.6 mln vs 12.8 mln


.I 18567
.C
earn
.W
<CANADIAN IMPERIAL BANK OF COMMERCE> 1ST QTR.
    TORONTO, March 5 -
    Period ended January 31
    Shr 61 cts vs 64 cts
    Shr diluted 60 cts vs 60 cts
    Net 96.5 mln vs 87.0 mln
    Loans 44.87 billion vs 48.07 billion
    Deposits 69.86 billion vs 68.45 billion
    Assets 83.92 billion vs 78.93 billion
    Note: shr after preferred dividends


.I 18569
.C
acq
.W
<TRIUMPH CAPITAL INC> TO MAKE ACQUISITION.
    MIAMI, March 5 - Triumph Capital Inc said it has signed a
letter of intent to acquire First Securities Transfer Systems
Inc of Pompano Beach, Fla., for undisclosed terms.
    The company said it is also entering the commercial finance
business through the formation of Triumph Financial corp.
    It said the new wholly-owned unit has extended a 350,000
dlr secured line of credit to Micro Designs Inc.


.I 18571
.C
earn
.W
CONCHEMCO INC <CKC> SETS QUARTERLY.
    WICHITA, Kan., March 5 -
    Qtly div 10 cts vs 10 cts prior
    Pay April Six
    Record March 16


.I 18572
.C
earn
.W
DST SYSTEMS INC <DSTS> REGULAR PAYOUT SET.
    KANSAS CITY, MO., March 5 -
    Qtly div five cts vs five cts prior
    Pay April 17
    Record March 16


.I 18573
.C
interest
.W
FED NOT EXPECTED TO TAKE MONEY MARKET ACTION.
    NEW YORK, March 5 - The Federal Reserve is not expected to
intervene in the U.S. government securities market to add or
drain reserves, economists said.
    Most economists said they did not expect the Fed to add
reserves with Federal funds trading below six pct.
    They said the funds rate's softer tone may indicate that
the need to add reserves in the current bank reserve
maintenance period is smaller than previously estimated.
    Fed funds opened at 5-15/16 pct and remained at that level.
Yesterday funds averaged 6.01 pct.


.I 18575
.C
earn
.W
******BROWN GROUP INC 4TH QTR SHR 77 CTS VS 76 CTS.
Blah blah blah.

.I 18577
.C
acq
.W
REGAL INTERNATIONAL <RGL> UPS BELL <BPSIQ> BID.
    MIDLAND, Texas, March 5 - Bell Petroleum Services Inc said
Regal International Inc has doubled its offer for Bell stock to
one Regal share for each Bell share from half a share
previously.
    The company said it is seriously considering the new offer
but has also received an expression of interest for a possible
merger into a Fortune 500 company it did not identify that will
be investigated at meetings to be held later this week.
    It said it will explore all possibilities before
recommending a final course of action.


.I 18581
.C
earn
.W
EQK GREEN ACRES LP <EGA> RAISES QUARTERLY.
    BALA CYNWYD, Pa., March 5 -
    Qtly div 26-1/4 cts vs 25 cts prior
    Pay Aug 14
    Record June 30


.I 18584
.C
earn
.W
******MERCANTILE STORES CO INC 4TH QTR SHR 3.26 DLRS VS 3.17 DLRS.
Blah blah blah.

.I 18585
.C
earn
.W
WINLAND ELECTRONICS INC 4TH QTR LOSS.
    MANKATO, MINN., March 5 -
    Shr loss one ct vs profit 15 cts
    Net loss 10,863 vs profit 176,344
    Revs 672,073 vs 766,066
    Year
    Shr loss seven cts vs loss one ct
    Net loss 77,804 vs loss 16,627
    Revs 1,717,810 vs 1,317,402


.I 18586
.C
livestock
.W
ANTIBIOTICS IN FEED AID DEADLY BACTERIA: STUDY.
    BOSTON, March 5 - A study of salmonella poisoning has
uncovered new evidence that the common practice of feeding
antibiotics to cattle is helping to create deadly bacteria that
can infect humans and resist medicines.
    Researchers at the federal Centers for Disease Control
tracked the spread of an unusual strain of salmonella that is
resistant to the drug chloramphenicol and were able to link the
resulting food poisoning to farms that used the drug to promote
the growth of cattle.
    Cattlemen often give their animals a constant supply of
antibiotics in feed to help them grow faster. But critics have
been warning for years that the constant exposure to the drugs
is helping bacteria learn to resist the drugs.
    Industry officials have disputed this, saying the diseases
that develop a resistance in cattle probably do not affect
humans.
    But the new study, reported in Thursday's New England
Journal of Medicine, shows the diseases can spread to humans.
    The research team, led by Dr. John Spika, said the number
of people who have developed the chloramphenicol-resistant
infection in Los Angeles County alone jumped from 69 in 1984 to
298 the following year. Two of those victims died and half the
victims in their study of 45 patients had to be hospitalized
for their illness.
    They also discovered that cooking the meat didn't always
prevent the disease. Only 15 pct of the victims reported eating
raw, infected hamburger. Thus, the researchers concluded, "the
majority of cases appear to have been caused by eating
hamburger that was at least partially cooked."
    The researchers said the results show that "food animals are
a major source of antimicrobial-resistant salmonella infections
in humans, and that these infections are associated with
(antibiotic) use on farms."


.I 18587
.C
wheat;grain;
.W
******EC REJECTS ALL FREE MARKET WHEAT EXPORT  OFFERS AT WEEKLY TENDER - TRADERS.
Blah blah blah.

.I 18589
.C
grain;barley;
.W
******EC AWARDS 123,000 TONNES BARLEY EXPORT  LICENCES AT 138.75 ECUS PER TONNE - TRADERS.
Blah blah blah.

.I 18590
.C
oilseed;wheat;grain;barley;corn;rapeseed;
.W
FRENCH CEREAL EXPORTS THROUGH ROUEN FALL.
    PARIS, March 5 - French cereal exports through the port of
Rouen fell 6.4 pct to 725,023 tonnes during the period February
1 to 25, from 774,704 for the period February 1 to 26 last
year, trade sources said.
    Main destinations were Saudi Arabia with 158,109 tonnes of
barley, the Soviet Union 147,214 of wheat, Italy 104,704 of
wheat, Spain 91,381 of wheat and maize, China 52,500 of wheat
and Algeria 41,000 of wheat.
    Between February 26 and today, five ships have loaded
137,000 tonnes of cereals, the sources added.
    The 137,000 tonnes comprised 59,500 tonnes of wheat for
China, 53,000 of wheat for the Soviet Union and 24,500 of wheat
for Algeria.
    By this Friday, sources estimated a further 233,600 tonnes
of cereals will have been loaded, comprising 47,000 tonnes of
barley, 78,600 of wheat and 25,000 of rapeseed for the Soviet
Union, 30,000 of wheat for Sri Lanka, 28,000 of wheat for China
and 25,000 of wheat for Poland.


.I 18591
.C
earn
.W
NATIONAL CONVENIENCE <NCS> TO HAVE 3RD QTR LOSS.
    HOUSTON, March 5 - National Convenience Stores Inc said it
expects to report a loss for the third quarter ending March 31
due to continued poor sales in Texas, especially in Houston.
    In last year's third quarter, National Convenience earned
1,788,000 dlrs or eight cts per share, including a gain of
2,883,000 dlrs from the sale of 186 stores to another operator.
 It said the results also included earnings from gasoline
operations of 2,500,000 dlrs or 11 cts per share caused by
unusually high gross margins on gasoline sales of 12.7 cts per
gallon that were caused by rapidly falling oil prices.
    National Convenience said its third quarter is usually weak
due to winter weather.


.I 18592
.C
crude
.W
******MARATHON RAISES CRUDE POSTED PRICES 50 CTS A BBL, EFFECTIVE TODAY, WTI AT 17 DLRS/BBL.
Blah blah blah.

.I 18593
.C
crude
.W
REPORT DUE ON OIL IMPORTS AND NATIONAL SECURITY.
    WASHINGTON, March 4 - A presidential commission that has
been studying oil imports, including their effect on national
security, is to to make its report soon, the White House said.
    Spokesman Marlin Fitzwater said the panel, set up last
October to examine U.S. oil import needs, would make its report
soon, probably within the next few weeks.
    He said National Security Adviser Frank Carlucci "will wait
until that report is in and then see if there is any special
action needed to be taken in the national security area to
implement it."


.I 18594
.C
earn
.W
******CHRYSLER SETS THREE-FOR-TWO STOCK SPLIT, RAISES DIVIDEND.
Blah blah blah.

.I 18596
.C
money-fx;yen;
.W
******U.S. COMMERCE DEPT'S ORTNER SAYS YEN IS 10 OR 15 PCT UNDERVALUED.
Blah blah blah.

.I 18599
.C
dlr;money-fx;
.W
******U.S. COMMERCE DEPT'S  ORTNER SAYS DOLLAR FAIRLY PRICED AGAINST EUROPEAN CURRENCIES.
Blah blah blah.

.I 18600
.C
earn
.W
BROWN GROUP INC <BG> 4TH QTR JAN 31 NET.
    ST. LOUIS, March 5 -
    Shr 77 cts vs 76 cts
    Net 13,843,000 vs 14,478,000
    Sales 374.6 mln vs 368.3 mln
    Avg shrs 18,003,000 vs 19,025,000
    Year
    Shr 2.16 dlrs vs 2.65 dlrs
    Net 39,503,000 vs 51,573,000
    Revs 1.41 billion vs 1.41 billion
    Avg shrs 18,269,000 vs 19,497,000
    NOTE: 1986 period ended February One
    Company changed fiscal yearend to January 31 from October
31. 1986 results were restated to reflect the change.


.I 18601
.C
grain;corn;
.W
******EC AWARDS EXPORT LICENCES FOR 25,000  TONNES MAIZE - PARIS TRADE.
Blah blah blah.

.I 18604
.C
lead;copper;strategic-metal;zinc;
.W
ZAMBIAN LATE 1986 COPPER OUTPUT UP, SALES DOWN.
    LUSAKA, March 5 - Zambian copper production rose 3.2 pct to
113,275 tonnes in fourth quarter 1986 from 109,767 in the same
1985 period but sales fell 18.7 pct to 119,967 tonnes from
147,537, Zambia Consolidated Copper Mines, ZCCM, said.
    A spokesman for the government-controlled mining company
said the country's cobalt production fell 24 pct to 879 tonnes
over the same period, while cobalt sales rose 92 pct to 1,734
tonnes. He did not give figures for the fourth quarter of 1985.
    Lead production fell 22.9 pct to 1,670 tonnes from 2,165
and zinc production dropped 14 pct to 4,830 tonnes, he added.
    ZCCM, which monopolises copper mining in Zambia and
accounts for about 90 pct of the country's foreign exchange
earnings, made a net loss of 718 mln kwacha in 1986 compared
with a net profit of 19 mln kwacha the previous year.
    The 1986 losses were after taking into account net interest
payments of 426 mln kwacha, an exchange loss of 412 mln kwacha
and taxes of 235 mln kwacha.


.I 18605
.C
ship;crude;
.W
BAD WEATHER CLOSES ALEXANDRIA PORT, OIL TERMINAL.
    ALEXANDRIA, Egypt, March 5 - Strong winds and high seas
today closed Alexandria, Egypt's biggest port, and an oil
pipeline terminal nearby, officials said.
    Facilities of the Suez-Mediterranean Arab Petroleum
Pipelines Company at Sidi Kreir, 32 km southeast of Alexandria,
were closed this morning after one tanker loaded and sailed.
    Officials said that five other tankers were waiting outside
the terminal for conditions to improve.


.I 18606
.C
earn
.W
PEGASUS GOLD INC <PGULF> 4TH QTR NET.
    SPOKANE, Wash., March 5 -
    Shr profit 20 cts vs loss two cts
    Net profit 2,665,000 vs loss 202,000
    Revs 12.1 mln vs 5,993,000
    Year
    Shr profit 35 cts vs loss 11 cts
    Net profit 4,653,000 vs loss 1,167,000
    Revs 35.1 mln vs 18.0 mln
    NOTE: Current qtr includes gain of 1.1 mln dlrs from tax
benefit.


.I 18608
.C
dlr;money-fx;yen;
.W
U.S. COMMERCE'S ORTNER SAYS YEN UNDERVALUED.
    WASHINGTON, March 5 - Commerce Dept. undersecretary of
economic affairs Robert Ortner said that he believed the dollar
at  current levels was fairly priced against most European
currencies.
    In a wide ranging address sponsored by the Export-Import
Bank, Ortner, the bank's senior economist also said he believed
that the yen was undervalued and could go up by 10 or 15 pct.
    "I do not regard the dollar as undervalued at this point
against the yen," he said.
    On the other hand, Ortner said that he thought that "the yen
is still a little bit undervalued," and "could go up another 10
or 15 pct."
    In addition, Ortner, who said he was speaking personally,
said he thought that the dollar against most European
currencies was "fairly priced."
    Ortner said his analysis of the various exchange rate
values was based on such economic particulars as wage rate
differentiations.
    Ortner said there had been little impact on U.S. trade
deficit by the decline of the dollar because at the time of the
Plaza Accord, the dollar was extremely overvalued and that the
first 15 pct decline had little impact.
    He said there were indications now that the trade deficit
was beginning to level off.
    Turning to Brazil and Mexico, Ortner made it clear that it
would be almost impossible for those countries to earn enough
foreign exchange to pay the service on their debts.  He said
the best way to deal with this was to use the policies outlined
in Treasury Secretary James Baker's debt initiative.


.I 18609
.C
wheat;grain;barley;
.W
EC REJECTS WHEAT EXPORT BIDS, GRANTS BARLEY.
    BRUSSELS, March 5 - The European Community's cereal
management committee rejected all bids to export free market
soft wheat at today's weekly tender, traders said.
    The committee awarded 123,000 tonnes of free market barley
export licences at a maximum export refund of 138.75 Ecus per
tonne.

.I 18611
.C
earn;acq;
.W
CORNING GLASS WORKS <GLW> UNIT TRANSFERS STOCK.
    CORNING, N.Y., March 5 - Corning Glass Works' subsidiary
Corning International Corp said it agreed to transfer 55 pct of
its capital stock of an Argentine glass manufacturer to a
European group.
    It said it will transfer the capital stock of Rigolleau,
S.A., to the group controlled by Camillo Gancia, an Argentine
industrialist.
    The company said the transaction would reduce Corning's
ownership in Rigolleau to approximately 20 pct. The company
said the change will not impact on its net income for th year.


.I 18612
.C
earn
.W
ZAYRE CORP <ZY> 4TH QTR JAN 31 NET.
    FRAMINGHAM, Mass., March 5 -
    Shr 73 cts vs 60 cts
    Net 43,792,000 vs 36,480,000
    Rev 1.78 billion vs 1.34 billion
    Year
    Shr 1.49 dlrs vs 1.61 dlrs
    Net 88,974,000 vs 94,647,000
    Rev 5.35 billion vs 4.04 billion
    NOTE: 4th qtr net includes pre-tax gain of 9.7 mln dlrs
from sale of real estate and real estate development company.
    Fiscal 1986 net includes extraordinary charge of 3.5 mln
dlrs, or six cts a share. All per share data reflects a
two-for-one stock split paid June 25, 1986.


.I 18613
.C
acq;sugar;
.W
FARMERS CONCERNED ABOUT BRITISH SUGAR OWNERSHIP.
    LONDON, March 5 - The National Farmers Union, NFU, remains
concerned about the future ownership of British Sugar despite
last week's decision by the government to block bids from
Italy's Gruppo Ferruzzi and Britain's Tate & Lyle Plc.
    The union's sugar beet committee met yesterday to consider
the implications of a government Monopolies and Merger
Commission, MMC, report issued last week. "We are still
concerned about S and W Berisford being long-term owners of
British Sugar," a spokesman said. "We do not view Berisford as
providing the long-term stability we want."
    The Trade and Industry Secretary accepted a recommendation
last week by the MMC that it block a bid by Tate and Lyle for S
and W Berisford Plc and stop Gruppo Ferruzzi buying a majority
of British Sugar, owned by Berisford.
    Union officials believe a new bid for the monopoly beet
processor is now likely. "We are looking again at the
undertakings that we have demanded of existing bidders and
which we would seek of any future bidders," the spokesman said.
The NFU, which represents Britain's 11,500 sugar beet growers,
is also taking legal advice on particular paragraphs in the MMC
report which it says need further explanation.


.I 18614
.C
earn
.W
ZAYRE <ZY> PLANS MORE STORE OPENINGS IN 1987.
    FRAMINGHAM, Mass., March 5 - Zayre Corp said it plans to
open 25 additional Zayre Stores, 35 new T.J. Maxx stores and 50
Hit or Miss Shops in 1987.
    In addition, Zayre said it plans to add six new BJ's
Wholesale Clubs and eight new HomeClubs to its warehouse group.
    Earlier, the company reported 1986 earnings, ended January
31, of 89.0 mln dlrs, or 1.49 dlrs per share, versus 94.6 mln
dlrs, or 1.61 dlrs per share, in fiscal 1985. It also reported
fourth quarter net of 43.8 mln dlrs, or 73 cts a share, versus
36.5 mln dlrs, or 60 cts a share in 1985's fourth quarter.


.I 18615
.C
gnp;jobs;
.W
DUTCH GROWTH LIKELY TO SLOW, JOBLESS RISE IN 1987.
    By Raymond Gijsen, Reuters
    AMSTERDAM, March 5 - Leaks of a major Dutch official
economic forecast due to be published on Monday indicate
reduced economic growth and a renewed rise in unemployment this
year, political and market sources say.
    Concern over an anticipated fall in Dutch competitiveness
this year against a background of an average 2-1/2 pct wage
increase, zero inflation and a firm guilder has triggered some
calls for a change in monetary policy to help boost growth.
    But whatever the government's response, the central bank
will stick to its policy of keeping the guilder firm, they say.
    The official forecasting agency Centraal Planbureau (CPB)
publishes its 1987 outlook at the start of a week which will
also see a key parliamentary debate on government finances and
the economy.
    Merchant bank Pierson, Heldring en Pierson - in an estimate
reflecting general sentiment - said last month that Dutch
economic growth was now seen around one pct.
    Domestic consumer spending is not expected to offset the
decline in export growth caused by slowing growth in West
Germany, the main Dutch trading partner, and the lower dollar,
Pierson said in its February economic outlook.
    The latest growth forecasts are well below a 1.5 to two pct
growth figure seen by the CPB early last month and forecasts of
2.5 pct economic growth in 1987 made last September.
    The fall in unemployment is bottoming out and the
government has already admitted it will not meet its goal of
reducing unemployment by an annual 50,000 from 1986 to 1990.
    Some analysts and industry leaders have questioned central
bank policy of pegging the guilder firmly to the mark and if
necessary keeping interest rates up to support the guilder.
    Employers federation NCW chairman Fred Lempers criticised
the guilder's revaluation in line with the West German mark in
last January's European Monetary System (EMS) realignment and
expressed concern over its effect on competitiveness.
    But the employers federation VNO noted the Dutch economy
had become more competitive since 1980 and the fall of the
dollar was affecting this gain more than the EMS realignment.
    Some analysts also question the central bank's decision not
to copy the latest Bundesbank discount rate cut and instead
lower money market rates and abolish a credit quota surcharge.
    Central bank president Wim Duisenberg has defended the move
saying the bank had adjusted the rates with the most impact on
the money market, noting "the (4.5 pct) discount rate is at the
moment not the most important Dutch rate because it is already
far below the market rates."
    Central bank officials say the heavy dependence on trade of
the Dutch economy requires a stable exchange rate, and interest
rate policies serve that goal.
    Analysts noted a large capital outflow from the Netherlands
recently as foreign investments in Dutch stock are being sold
to take profits.
    Loosening the tie between the guilder and the mark would
reduce international confidence in the guilder and make it more
dificult to attract foreign capital, they said, noting Dutch
interest rates rose sharply when the guilder was not revalued
completely in line with the mark in a 1983 EMS realignment.
    Many Dutch banks have reacted favourably to the decision
not to copy the last German discount rate cut, but Pierson
warned it could actually add to uncertainty over the guilder.
    Some analysts noted friction between the Finance Ministry
and the central bank, with Finance Minister Onno Ruding having
said before the Bundesbank discount rate cut he favoured lower
Dutch rates but that the Germans should move first.
    One analyst said Ruding wanted to bring interest rates down
to reduce the government debt burden.
    A Finance Ministry spokesman said lower interest rates were
needed but denied any suggestion of conflicting views between
the ministry and the central bank. "The cabinet's policy is
steady, the guilder has to stay with the mark," he said.


.I 18616
.C
earn
.W
CHRYSLER <C> SETS STOCK SPLIT, HIGHER DIVIDEND.
    DETROIT, March 5 - Chrysler Corp said its board declared a
three-for-two stock split in the form of a 50 pct stock
dividend and raised the quarterly dividend by seven pct.
    The company said the dividend was raised to 37.5 cts a
share from 35 cts on a pre-split basis, equal to a 25 ct
dividend on a post-split basis.
    Chrysler said the stock dividend is payable April 13 to
holders of record March 23 while the cash dividend is payable
April 15 to holders of record March 23. It said cash will be
paid in lieu of fractional shares.
    With the split, Chrysler said 13.2 mln shares remain to be
purchased in its stock repurchase program that began in late
1984. That program now has a target of 56.3 mln shares with the
latest stock split.
    Chrysler said in a statement the actions "reflect not only
our outstanding performance over the past few years but also
our optimism about the company's future."


.I 18620
.C
acq
.W
BANCO SANTANDER TO BUY WEST GERMANY'S CC-BANK.
    MADRID, March 5 - <Banco Santander> signed a letter of
intent with Bank of America <BAC> to purchase its West German
affiliate <Bankhaus Centrale Credit AG>, CC-Bank, the bank said
in a statement amplifying an earlier report from Frankfurt.
    "The incorporation of CC-Bank in our group will provide a
major boost...For chanelling investment between Spain and the
European Community," the statement said.
    "This operation enables us to take up a solid position in
West Germany ahead of Spain's full integration into the EC's
financial system in five years' time."
    The deal included the license for Visa credit cards.


.I 18621
.C
earn
.W
CANADIAN IMPERIAL SEES LOWER LOAN LOSSES.
    TORONTO, March 5 - <Canadian Imperial Bank of Commerce>,
earlier reporting higher net income for the first quarter ended
January 31, said it expects loan losses to be lower than last
year's 697.0 mln dlrs.
    However, the bank said it will maintain the high level of
provisioning for loan losses established last year because of
many market uncertainties. Commerce bank set loan loss
provisions of 636.0 mln dlrs in fiscal 1986, ended October 31.
    The bank earlier said first quarter net income rose to 96.5
mln dlrs from 87.0 mln dlrs in the prior year. Profit per basic
share after dividends fell to 61 cts from year-ago 64 cts.
    Commerce Bank said because of market uncertainties, it used
an estimate of 600.0 mln dlrs for fiscal 1987 loan losses in
calculating first quarter results.
    The bank's first quarter provision for loan losses rose to
172.0 mln dlrs, from 152.0 mln dlrs in the prior year.
    Commerce Bank also said it will continue to adopt an
agressive posture in adding to its general provisions against
loan exposure to 34 countries designated by the federal
government's Inspector General of Banks.
    First quarter net partly benefitted from net interest
income, up to 561.8 mln dlrs from year ago 540.9 mln dlrs.
    Commerce Bank said improved other income, which rose to
213.6 mln dlrs from year-earlier 170.1 mln dlrs, and net income
was partially offset by the increased loan loss provisions,
non-interest expenses and income taxes.
    The bank said first quarter total assets increased to 83.92
billion dlrs from 78.93 mln dlrs in the prior year, due mainly
to continued expansion in consumer loan and mortgage fields.
    Return on assets increased by two cts to 46 cts per 100
dlrs of average assets from the first quarter in fiscal 1986,
but declined two cts from fiscal 1986 fourth quarter.
    The bank also said total non-accrual loans increased to 2.4
billion dlrs in the first quarter from year-ago 1.8 billion
dlrs. However, non-accrual loans declined 130 mln dlrs from
fiscal 1986 year-end.
    "Despite the recent announcement of the suspension of
interest payments by Brazil, virtually all of the bank's loans
to this country were income producing up to January 31, 1987,
and there was little adverse impact on the bank's earnings
prior to the announcement," Commerce bank said.
    The bank did not disclose a forecast of the impact on
future earnings by Brazil's suspension of interest payments.


.I 18623
.C
earn
.W
MERCANTILE STORES CO INC <MST> 4TH QTR NET.
    WILMINGTON, Dela., March 5 - Qtr ends Jan 31
    Shr 3.26 dlrs vs 3.17 dlrs
    Net 47.9 mln vs 46.7 mln
    Revs 673.1 mln vs 630.2 mln
    12 mths
    Shr 7.54 dlrs vs 6.95 dlrs
    Net 111.1 mln vs 102.4 mln
    Revs 2.03 billion vs 1.88 billion
.

.I 18624
.C
sugar
.W
INDIA BOUGHT AT LEAST EIGHT CARGOES SUGAR--TRADE.
    ****LONDON, March 5 - India bought eight cargoes of white
sugar at a buying tender this week but also gave sellers
options to sell an extra eight cargoes at the same prices,
traders said.
    Four international firms shared the business which gave
each of them sales of two cargoes of Mar/Apr shipment sugar at
233 dlrs CIF and options on two cargoes of Apr/May.
    This brings recent options India has given traders to some
200,000 tonnes at fixed prices and makes future Indian
purchases very dependent on price fluctuations, traders said.
    At 233 dlrs CIF the sugar sold this week was at a discount
of up to 10 dlrs to current prices, some traders said.


.I 18625
.C
acq
.W
******UNITEL VIDEO SHAREHOLDER PROPOSES POSSIBLE SALE OR LIQUIDATION OF COMPANY.
Blah blah blah.

.I 18629
.C
earn
.W
ALLEGHENY POWER SYSTEM INC <AYP> SETS PAYOUT.
    NEW YORK, March 5 -
    Qtly div 73 cts vs 73 cts prior
    Pay March 31
    Record March 16


.I 18630
.C
earn
.W
<SELKIRK COMMUNICATIONS LTD> 4TH QTR NET.
    TORONTO, March 5 -
    Oper shr 57 cts vs 73 cts
    Oper net 6,051,000 vs 7,818,000
    Revs 50.0 mln vs 56.0 mln
    Year
    Oper shr 1.06 dlrs vs 1.24 dlrs
    Oper net 11,301,000 vs 13,203,000
    Revs 171.9 mln vs 207.4 mln
    NOTE: Current oper net excludes extraordinary income of
180,000 dlrs in qtr and 1,119,000 dlrs in year vs previous
losses of 2,345,000 dlrs and 515,000 dlrs, respectively.
                        


.I 18631
.C
earn
.W
HOUSTON OIL ROYALTY TRUST <RTH> PAYOUT LOWER.
    HOUSTON, March 5 -
    Mthly div 2.108 cts vs 2.158 cts prior
    Pay March 26
    Record March 16


.I 18634
.C
earn
.W
******ENGELHARD CORP SETS THREE FOR TWO STOCK SPLIT AND RAISES QUARTERLY.
Blah blah blah.

.I 18635
.C
wheat;grain;barley;corn;
.W
PARIS TRADE DETAILS EC GRAIN TENDER RESULT.
    PARIS, March 5 - The EC Commission rejected all bids for
free market bread-making and feed wheat and all bids for the
special West German tender at today's weekly EC cereals tender,
trade sources said here.
    It granted export licences for 123,000 tonnes of free
market barley at a maximum rebate of 138.75 Ecus per tonne and
25,000 tonnes of maize at a maximum rebate of 133.75 Ecus, they
said.
    Licences for 100,000 tonnes of the barley were awarded to
French trade houses, they added.


.I 18637
.C
acq
.W
HOLDER PROPOSES UNITEL <UNV> SALE OR LIQUIDATION.
    WASHINGTON, March 5 - Michael Landes, a major stockholder
in Unitel Video Inc, said he has asked the company to consider
liquidating, or selling some or all of its assets.
    "Mr. Landes has requested the company to implement a
program to maximize shareholder values, which might include a
sale of all or part of the company or a liquidation," he said
in a filing with the Securities and Exchange Commission.
    Landes and another Unitel Video investor, Albert Schwatz,
have formed a shareholder group and together hold 329,225
common shares, or 15.2 pct of the total outstanding common
stock.
    Landes and Schwartz had reached an agreement in principle
with the New York video tape service company on a 12.50 dlr a
share takeover proposal last September, but subsequent merger
talks broke down in October.
    The investors told the SEC they are continuing to review
their positions company and may acquire more shares or sell
some or all of their current stake.


.I 18638
.C
acq
.W
******HUGES TOOL COMPANY SAYS BAKER INTERNATIONAL MERGER PLAN NOT TERMINATED.
Blah blah blah.

.I 18639
.C
earn
.W
ROYAL DUTCH/SHELL GROUP OF COS 4TH QTR NET.
    NEW YORK, March 5 -
    Shr Royal Dutch Petroleum Co <RD> 2.30 dlrs vs 2.90 dlrs
    Final Royal Dutch dividend of 8.30 guilders for total 12.80
guilders vs 12.80 guilders for 1985
    Shr Shell Transport and Trading Co PLC <SC> 1.38 dlrs vs
1.65 dlrs
    Final Shell Transport dividend 118.0 pence for total of
172.0 pence vs 140.0 pence for 1985
    Group Net 1.07 billion vs 1.24 billion
    Group Sales 20.42 billion vs 25.84 billion
    Year
    Shr Royal Dutch 8.65 dlrs vs 9.11 dlrs
    Net Shell Transport 4.78 dlrs vs 5.16 dlrs
    Group Net 3.71 billion vs 3.88 billion
    Group Sales 81.40 billion vs 94.57 billion
    NOTES: Group is 60 pct owned by Royal Dutch and 40 pct by
Shell Transport
    Dollar amount of Royal Dutch dividend will depend on
guilder/dollar exchange rate on May 14. Final dividend is
payable June 16 to holders of record May 26
    Shell Transport dividend and per share results based on New
York shares, which are equal to four ordinary shares. Dollar
final dividend will be determined by sterling/dollar exchange
rate May 18. At current rate, with tax credits, is equal to
2.59 dlrs. Final dividend is payable May 28 to holders of
record April 10
    Fourth quarter U.S. dollar figures for group translated
from sterling at average rate of exchange for the quarter which
was 1.43 dlrs per pound in 1986 and 1.44 dlrs in 1985. Full
year U.S. dollar figures are sum of sterling translations to
U.S. dollars for first, second, third and fourth quarters
    Net includes FIFO inventory gain 217 mln dlrs vs loss 80
mln dlrs in quarter and loss 1.23 billion dlrs vs loss 178 mln
dlrs in year. If LIFO accounting had been used, company said,
Royal Dutch per share net would have been 1.78 dlrs vs 3.17
dlrs in quarter and 11.60 dlrs vs 9.53 dlrs in year, Shell
Transport per share net would have been 1.10 dlrs vs 1.81 dlrs
in quarter and 6.36 dlrs vs 5.40 dlrs in year
    Net includes restructuring credit 114 mln dlrs vs charge 72
mln dlrs in quarter and credit 67 mln dlrs vs charge 467 mln
    Per share impact of restructuring on Royal Dutch was credit
27 cts vs charge 17 cts in quarter and credit 16 cts vs charge
1.10 dlrs in year, on Shell Transport was credit 15 cts vs
charge 10 cts in quarter and credit nine cts vs charge 62 cts
in year
    Net also includes currency exchange losses of 20 mln dlrs
vs 69 mln dlrs in quarter and 170 mln dlrs vs 401 mln dlrs in
year. Exchange losses had per share impact on Royal Dutch of 14
cts vs 31 cts in quarter and 96 cts vs 1.26 dlrs in year and on
Shell Transport of eight cts vs 17 cts in quarter and 51 cts vs
71 cts in year.


.I 18641
.C
wheat;grain;
.W
WORLD GRAIN TRADE RECOVERY MAY BE UNDERWAY.
    MINNEAPOLIS, March 5 - World grain trade could be turning
the corner and heading toward recovery in the 1986-87 season, a
Cargill, Inc. analyst said.
    Writing in the March issue of the Cargill Bulletin, David
Rogers of Cargill's Commodity Marketing Division cited a
gradual rise in world wheat trade in recent months, with a slow
rise in wheat prices after recent historic lows.
    He said the wheat trade, because wheat can be produced in
many nations, is a good barometer of world grain trade and
could lead to more activity in other grain markets.
    Rogers said that with world grain prices at their lowest
level in over a quarter of a century in real terms, demand has
begun to rise while producing nations are re-examining their
expensive price-support policies and reducing planted acres.


.I 18642
.C
acq
.W
INVESTMENT FIRM BOOSTS PUROLATOR <PCC> STAKE.
    WASHINGTON, March 5 - Halcyon Investments, a New York
investment partnership that deals mainly in risk arbitrage and
stock trading, said it raised its Purolator Courier Corp stake
to 726,700 shares, or 9.5 pct, from 474,900, or 6.2 pct.
    In a filing with the Securities and Exchange Commission,
Halcyon, whose managing partner is Alan B. Slifka and Co, said
it bought 201,800 Purolator common shares between Feb 3 and
March 2 at prices ranging from 28.689 to 34.811 dlrs each.
    Halcyon, which said it has spent 20.1 mln dlrs for its
Purolator common shares, said it also acquired options on Feb
27 giving it the right to buy 50,000 shares for 1.8 mln dlrs.


.I 18643
.C
acq
.W
AETNA <AET> TO SELL CANADIAN OPERATIONS.
    HARTFORD, Conn., March 5 - Aetna Life and Casualty Co said
its Aetna Life and Casualty of Canada Ltd subsidiary has agreed
in prnciple to sell its casualty-property subsidiary, Aetna
Casualty Co of Canada to <Laurentian Group> of Montreal for
undisclosed terms.
    The company said the agreement is subject to Canadian
government approval.


.I 18644
.C
hog;livestock;carcass;
.W
NPPC DELEGATES APPROVE DISEASE AND DRUG PROGRAMS.
    Chicago, March 5 - Delegates from the National Pork
Producers Council, NPPC, yesterday approved programs for
control and eradication of pseudorabies and establishment of a
national safe drug use program.
    The delegate body, attending the American Pork Congress in
Indianapolis, approved a pseudorabies control and eradication
program at the state level after a recommendation from NPPC's
PRV (pseudorabies virus) oversight committee.
    The PRV committee received results of a three year, five
state pilot project which had a 97.5 pct success rate in
eradication of the disease within 116 hog herds. The project
was jointly funded by the USDA and NPPC.
    "Primarily it (the program) allows individual states to
deal with their own problems according to a timetable that
suits them best," Mike Wehler, member of the NPPC's PRV
oversight committee said.
    In regards to safe drug use, the delegates approved a plan
asking that NPPC be active in establishing a national safe drug
use program.
    The program would establish better relationships between
producers and veterinarians and eventually lead to a quality
assurance program in pork production, according to the plan.
    "This program basically communicates to the FDA that we are
concerned about safe drug use and will do our part to use drugs
safely, if FDA will allow the same policy to continue in
effect," Wehler said.


.I 18645
.C
earn
.W
SOUTHERN MINERAL CORP <SMIN> 4TH QTR LOSS.
    CHICAGO, March 5 -
    Shr loss two cts vs profit three cts
    Net loss 77,400 vs profit 134,000
    Revs 418,500 vs 435,900
    Year
    Shr profit eight cts vs profit 27 cts
    Net profit 315,100 vs profit 1,082,700
    Revs 1,761,900 vs 2,511,200
    NOTE: Per-share figures adjusted for four-for-three stock
distribution effective Dec 14, 1984
    1985 results include an extraordinary tax benefit of 55,000
dlrs, or one ct a share in each period


.I 18646
.C
interest
.W
BANK OF ENGLAND RESISTS PRESSURE FOR RATE CUT.
    By Rowena Whelan, Reuters
    LONDON, March 5 - The Bank of England again fought against
money and bond market pressure for a pre-Budget interest rate
cut, leaving the pound to take the strain with a further rise
in its trade-weighted index to a six-month high.
    It closed at its best level since September 12, at 71.4 pct
of its 1975 value on the index, as foreign investors continued
to buy into a currency which offers high relative returns and
the possibility of short-term capital gains, dealers said.
    Meanwhile, opinion is divided over whether the Bank can
stop a cut before Budget Day, March 17, and why it should want
to.
    The Bank's latest strong signal to the market that it wants
rates to stay steady for the moment came in midafternoon, when
it lent to the discount houses at a penal rate of 11-3/4 pct to
relieve a money market shortage.
    "They're really making the discount houses suffer," said
Stephen Lewis, economist at brokerage house Phillips and Drew.
"Eleven and three-quarters pct is way above money market rates."
    This money market signal was apparently not accompanied by
any sterling sales on the foreign exchanges, talk of which had
inhibited strong rises yesterday and Tuesday, so buyers came
strongly into the pound.
    The pound surged to a high of 1.5798/808 dlrs at the London
close, up from the previous finish at 1.5650/60, and 2.8900/60
marks, up from 2.8720/50.
    "If this pressure keeps up...There is a possibility that
rates could drop before the Budget," said Jeremy Hale, economist
at finance house Goldman Sachs International Corp.
    Some gilt traders are forecasting a half-point cut in the
base rate from the current 11 pct as early as tomorrow.
    However, analysts said the Bank of England will need to be
convinced that the present rise is a fundamental re-rating
rather than a result of short-term speculative gains.
    There are valid reasons for the Bank to be cautious, said
Peter Fellner, U.K. Economist at brokers James Capel and Co.
    Markets have become highly optimistic about the chances of
a Conservative Party victory in any early general election, and
disappointment if Prime Minister Margaret Thatcher decides to
hold back could lead to a decline in the pound and a setback
for bonds, Fellner said.
    An election could be delayed until mid-1988, but most
forecasts say it will be this year.
    Others note that the pound could yet prove vulnerable to
oil price losses or a change of fortune for the dollar.
    However, analysts agree the Bank is largely trying to set
the timing of a cut than holding out against one altogether.
    The authorities traditionally prefer a single sustainable
rate move, one way or the other, to half points here and there.
    Some add the Bank will be influenced by signs that at least
a proportion of the latest bout of sterling buying is long-term
capital coming into the London market, notably from Japan.
    They argue that the pound is being perceived as a safer bet
than the dollar, given the latters recent sharp falls and
current political upheavals in Washington.
    The Bank may want to see another few points on the
trade-weighted index before the Budget, argued Lewis. "But by
then sterling should be firm enough to satisfy even the Bank of
England," he added.
    The Bank declined to comment on its reasons for resisting
pressure for a rate move before the budget, but banking sources
said the authorities see the recent rise in sterling as more
than just marking up by foreign exchange traders.
    Meanwhile, analysts noted the market ignored potentially
harmful news on the trade front, today's figures showing that
the current account deficit in 1986 was 1.1 billion stg.
    This was above previous estimates of the current account
deficit and compares with a surplus of 2.9 billion stg in 1985.
    Fellner said that under more normal conditions this would
have given the bond and currency markets a pause, but that they
were too bullish to worry about such fundamentals.
    The guessing game over the timing of a cut has the clearing
banks divided as well as the markets. Privately, some bank
officials forecast the Bank will hold out at least for this
week, but at least one bank says a rise is possible tomorrow.
If a move comes before March 17, forecasts are for a half-point
cut, with another half or full point about Budget day.


.I 18648
.C
earn
.W
ENGELHARD CORP <EC> SETS STOCK SPLIT.
    EDISON, N.J., March 5 - Engelhard Corp said its board
declared a three-for-two stock split and raised the quarterly
dividend to 19-1/2 cts per share presplit from 19 cts, both
payable March 31 to holders of record March 17.


.I 18649
.C
crude
.W
EGYPTIAN 1986 CRUDE OIL OUTPUT DOWN ON 1985.
    CAIRO, March 5 - Non-Opec Egypt produced 40.3 mln tonnes
(about 295 mln barrels) of crude in 1986 against 44.3 mln
tonnes (about 323 mln barrels) in 1985, according to official
figures released today by the Egyptian General Petroleum Corp.
(EGPC).
    Officials say Egypt can produce up to one mln bpd per day,
but production was cut when world prices plunged last year.
    In an attempt to help OPEC stabilize the world market,
Egypt cut its 1987 production target of 940,000 bpd to its
current output of 870,000 bpd.
    Egypt, which exports a third of its output, currently sells
its top Suez and Ras Bahar blends for 17.25 dlrs a barrel.


.I 18650
.C
grain;barley;
.W
TRADERS DETAIL IRISH INTERVENTION BARLEY TENDER.
    LONDON, March 5 - The European Commission authorised the
export of 33,500 tonnes of Irish intervention barley at today's
tender for non-European Community destinations at 53.10 Ecus
per tonne, grain traders said.


.I 18652
.C
earn
.W
H AND H OIL TOOL CO <HHOT> 4TH QTR LOSS.
    SANTA PAULA, Calif., March 5 -
    Shr loss six cts vs profit two cts
    Net loss 196,000 vs profit 71,000
    Revs 2,512,000 vs 5,776,000
    Year
    Shr loss 1.09 dlrs vs loss 18 cts
    Net loss 3,509,000 vs loss 587,000
    Revs 12.0 mln vs 21.0 mln
    Note: 1986 year includes special charge of 1,600,000 dlrs,
or 50 cts per shr on write-down of rental equipment.


.I 18654
.C
earn
.W
CB AND T FINANCIAL CORP <CBTF> YEAR NET.
    FAIRMONT, W.Va., March 5 -
    Shr 2.10 dlrs vs 1.72 dlrs
    Shr diluted 1.98 dlrs vs 1.72 dlrs
    Net 2,228,000 vs 1,730,000


.I 18655
.C
acq
.W
AMOSKEAG BANK <AMKG> TO ACQUIRE ENTREPO.
    MANCHESTER, N.H., March 5 - Amoskeag Bank said it signed an
agreement to acquire <Entrepo Financial Resources Inc>, a
Philadelphia-based company which leases and remarkets high
technology equipment.
    Terms of the acquisition were not disclosed.
    It said Entrepo has assets of 20 mln dlrs.


.I 18656
.C
earn
.W
WASHINGTON NATIONAL CORP <WNT> VOTES DIVIDEND.
    EVANSTON, ILL., March 5-
    Qtly div 27 cts vs 27 cts prior qtr
    Pay 1 April
    Record 16 March


.I 18657
.C
sugar
.W
KAINES SELLS JORDAN TWO CARGOES OF WHITE SUGAR.
    LONDON, March 5 - Trade house Kaines said it sold Jordan
two cargoes of white sugar at its buying tender today.
    The sale comprised two 12,000 to 14,000 tonne cargoes (plus
or minus 10 pct) for Mar/Apr shipment, a Kaines trader said.
    Traders said the business was done at 235.5 dlrs a tonne
cost and freight.


.I 18658
.C
acq
.W
COMMUNITY BANK SYSTEM <CBSI> BUYS NICHOLS BANK.
    SYRACUSE, N.Y., March 5 - Community Bank Systems Inc and
the <Nichols National Bank> said they have signed a definitive
agreement for Nichols to become a member of the CBSI Group of
banks for an exchange of stock worth 2.8 mln dlrs.
    CBSI said it expects to complete the deal, pending Nichols'
shareholder and regulatory approval, later this year.


.I 18662
.C
acq
.W
******EASTMAN KODAK ACQUIRES 18.7 PCT INTEREST IN ENZON INC.
Blah blah blah.

.I 18664
.C
sugar
.W
TURKEY SEEKING 100,000 TONNES SUGAR - TRADE.
    LONDON, March 5 - Turkey is holding a buying tender for
100,000 tonnes of white sugar on March 24, traders here said.
    The sugar is being sought for early arrival and will
probably be met with April/May shipment sugar, they added.
    Earlier today newspapers in Turkey carried an advertisement
from Turkish Sugar Factories inviting offers of 100,000 tonnes
of crystal sugar with a 50 pct option to increase or decrease
the amount.
    Over the 1983/85 period Turkey each year has exported
between 240,000 and 350,000 tonnes of whites to Iran and
between 62,000 and 230,000 tonnes to Iraq.
    Following lower sugar crops in the past two years analysts
said Turkey needs to import sugar now if it is to continue
filling these export contracts, and may need to buy more.
    Last month London broker C Czarnikow estimated Turkish
1986/87 production at 1.42 mln tonnes raw value against 1.4 mln
in 1985/86 and an average 1.76 mln in the previous three
seasons.
    The semi-official Anatolian Agency recently quoted Turkish
Minister of Industry and Trade Cahit Aral as saying Turkey
would export 100,000 tonnes of sugar this year and import the
same amount.


.I 18665
.C
acq
.W
SHAD FAVORS SHORTENING DISCLOSURE PERIOD.
    WASHINGTON, March 5 - Securities and Exchange Commission
Chairman John Shad said the SEC favors shortening the current
10-day period for disclosing takeover attempts but opposes
putting restrictions on the use of so-called junk bonds.
    "We favor shortening the disclosure period to two days,"
Shad told members of the House Telecommunications and Finance
subcommittee when asked for his recommendation.
    He said the SEC's responsibility was to provide full
disclosure for securities, including junk bonds, and not to
make decisions based on merit. He said junk bonds had some
value because of their liquidity.
    Shad said he opposes proposals to require those attempting
takeovers to file a statement on the impact the takeover would
have on the communities involved.
    "We've opposed it in the past. It goes far beyond investor
protection," Shad said.
    He said he had no comment on a proposal by House Speaker
Jim Wright, D- Texas, to tax securities transactions.


.I 18667
.C
earn
.W
CORRECTED - PEGASUS GOLD INC<PGULF> 4TH QTR NET.
    VANCOUVER, British Columbia, March 5 -
    Shr profit 20 cts vs loss two cts
    Net profit 2,665,000 vs loss 202,000
    Revs 12,141,000 vs 5,993,000
    Year
    Shr profit 35 cts vs loss 11 cts
    Net profit 4,653,000 vs loss 1,167,000
    Revs 35.1 mln vs 18.0 mln
    NOTE: company corrects reporting period to 4th qtr and year
from 3rd qtr and nine mths


.I 18669
.C
earn
.W
AEQUITRON MEDICAL INC <AQTN> 3RD QTR LOSS.
    MINNEAPOLIS, March 5 - Period ended January 31
    Shr loss five cts vs profit eight cts
    Net loss 247,100 vs profit 345,300
    Sales 4,529,300 vs 3,482,800
    Nine mths
    Shr profit six cts vs profit 18 cts
    Net profit 261,300 vs profit 793,700
    Sales 12.3 mln vs 9,957,200


.I 18670
.C
earn
.W
LOWE'S COS INC <LOW> 4TH QTR JAN 31 NET.
    NORTH WILKESBORO, N.C., March 5 -
    Shr 18 cts vs 31 cts
    Net 7,168,000 vs 11.3 mln
    Sales 497.4 mln vs 475.6 mln
    Avg shrs 39.6 mln vs 37.1 mln
    Year
    Shr 1.34 dlrs vs 1.64 dlrs
    Net 52.2 mln vs 59.7 mln
    Sales 2.28 billion vs 2.07 billion
    Avg shrs 39.0 mln vs 36.5 mln
    NOTE: Current year net both periods includes charge
2,885,000 dlrs or seven cts shr from early note retirement and
charge seven cts shr from reversal of tax credits.
    Current year net both periods includes gain six cts shr
from plywood manufacturers litigation settlement.


.I 18674
.C
acq
.W
FRANCE TO SELL STAKE IN SOCIETE GENERALE UNIT.
    STRASBOURG, France, March 5 - The French government is to
sell to the public its 47.42 pct direct holding in Societe
Generale <STGN.PA>'s regional bank subsidiary <Societe Generale
Alsacienne de Banque>, SOGENAL, from next Monday, SOGENAL
officials said.
    SOGENAL, founded in 1881 and nationalised in 1982, is the
leading French regional bank and has branches in Austria,
Belgium, Luxembourg, East and West Germany and Switzerland.
    Chairman Rene Geronimus told a news conference the share
offer price, expected to be announced tomorrow by Finance
Minister Edouard Balladur, would be between 110 and 130 francs.
    Societe Generale, which will itself be privatised later
this year, will retain its 52.58 pct majority holding in the
bank, Chairman Marc Vienot said.
    SOGENAL officials said they forecast 1987 consolidated
group profit of around 170 mln francs after an estimated 160
mln this year and 159 mln in 1985.
    SOGENAL's privatisation will be preceded by a capital
increase to 320 mln francs from 263 mln, earning about 250 mln
francs in new funds. Its shares will be divided by eight,
giving a capital of 12.8 mln shares of 25 francs nominal.
    The bank will be listed on the Nancy stock exchange, in
line with the Finance Ministry and government's aim of a
regional operation, Geronimus said.
    He said he was hoping for shareholders to total around
30,000 to 35,000 against the 12,500 before nationalisation. Ten
pct of the capital to be floated will be reserved for employees
with the rest offered to the public. There will not be a share
reserved for foreign investors. "This is too small an operation
and anyway they will be able to buy shares in France," he said.
    Stockbroker sources said that a likely share offer price of
120 francs would value SOGENAL at 1.5 billion francs.
    Geronimus said the bank's future aim would be to reinforce
its existing strong points, with no major projects planned
apart from the opening soon of a Basle branch.
    SOGENAL is the only French bank in Austria, it set up the
first foreign exchange dealing room outside Paris at its
Strasbourg headquarters in 1985, and is the only foreign
banking subsidiary to be a broker on the Zurich Bourse.
    The government's banking adviser for the operation was
<Banque Privee de Gestion Financiere>, BPGF, owned by French
financier Pierre Moussa's <Pallas> group, assisted by Britain's
<Hambros Bank Ltd>.


.I 18676
.C
acq
.W
HUGHES TOOL <HT> SAYS BAKER <BKO> MERGER ALIVE.
    HOUSTON, March 5 - Hughes Tool Co Chairman W.A. Kistler
said its counter proposal to merge with Baker International
Corp was still under consideration and that a merger was in the
best interests of both companies.
    "Our hope is that we can come to a mutual agreement that is
good for both companies," Kistler said of the proposed merger
that would result in a 1.2 billion dlr oil field service
company. "We're working very hard on this merger."
    Hughes' board today again adjourned a shareholders meeting
to vote on the proposed merger and rescheduled it for March 11
to give Baker more time to consider the counter proposal.
    The Hughes board, which had previously expressed concern
about a U.S. Department of Justice consent decree that would
require Baker to sell its drilling bit operations and
submersible pump business, met yesterday and threatened to
terminate the proposed merger.
    The Hughes board made a counter proposal that the two
companies first find acceptable buyers for the businesses
before signing the decree.
    The directors of Baker immediately after receiving the
counter proposal filed a law suit in Texas in a Texas state
court to force to Hughes to complete the merger.
    "The uncertainty as to the price and conditions that might
be imposed by the Department of Justice makes us very nervous
about what the outcome might be," Kistler said, in explaining
why Hughes had made the counter proposal.
    "We need additional time to understand why Baker did not
accept our proposal."
    Kistler also said that the law suit filed by Baker "was not
a factor" in the board's decision to keep its merger proposal
on the table.
    He declined to comment on the allegations in the lawsuit.
    Kistler said Hughes would be willing to consider a
compromise counter proposal, but declined to be more specific.
    The Justice Department in January said it would block the
Hughes and Baker merger on anti-trust grounds unless both
companies agreed to sign a consent decree that would provide
for the sale of the assets after the merger took place.
    The Hughes board said it would not sign the decree because
its was too "unreasonable." Hughes said that Baker should
instead complete the sale of the disputed assets before the
merger is finalized and given government approval.
    Under the decree, if Baker is unable to find acceptable
buyers within a specified period of time after the decree is
approved, a federal trustee would become responsible for
finding a buyer.
    Kistler said that under those terms, the trustee could take
up to 10 years to complete the sales.
    He also expressed concern that the combined companies might
be required by the government's conditions to license some of
its technology to any purchaser of the assets.
    Baker said last night in a statement that the required
assets to be sold would reduce revenues by about 65 mln dlrs,
representing about three pct of the revenues of the combined
companies.



.I 18677
.C
earn
.W
MIDLAND <MLA> SETS STOCK SPLIT.
    CINCINNATI, March 5 - Midland Co said its board declared a
two-for-one stock split, subject to approval of a doubling of
authorized common shares at the annual meeting on April 9, and
an increase in the quarterly dividend to 12 cts pre-split from
10 cts.
    The dividend is payable April 8, record March 17, and the
split would be payable May 7, record April 23.


.I 18678
.C
earn
.W
PRUDENTIAL INSURANCE YEAR EARNINGS.
    NEWARK, N.J., MARCH 5 - The Prudential Insurance Company of
America, a privately held company, said today that net income
in 1986 rose to 2.8 billion dlrs from the 2.3 billion dlrs
reported the year earlier.
    Assets under management rose to 177.5 billion dlrs in 1986
from 150.1 billion dlrs in 1985, while consolidated assets
jumped to 134.5 billion dlrs from 115.7 billion dlrs.
    Discussing its major subsidiaries, the company said that
Prudential Capital and Investment Services Inc, the holding
company for brokerage house Prudential-Bache Securities and
certain other related subsidiaries, earned 142 million dlrs in
1986. Of that, the securities operations of Prudential-Bache
netted 81.7 mln dlrs after taxes and a charge of 25 mln dlrs.


.I 18682
.C
grain;corn;
.W
EC OPENS SPECIAL REBATE FOR MAIZE - PARIS TRADE.
    PARIS, March 5 - The EC Commission decided to open a
special daily export rebate today for maize exports to Morocco,
Israel, Canary Islands and zone 5c (Sub-Saharan Africa), trade
sources said here.
    The rebate was set at 153 European currency units per tonne
for March and 133 for April through July.


.I 18683
.C
earn
.W
AEQUITRON <AQTN> SEES 4TH QTR CHARGE.
    MINNEAPOLIS, March 5 - Aequitron Medical Inc said costs
related to its previously announced plan to consolidate Life
Products operations in Boulder, Colo, are expected to total
720,000 dlrs, or eight cts a share for the fourth quarter
ending April 30.
    It said the costs including moving expenses, severance pay
and future lease payments.
    The company said it will consolidate Life Products into the
company's headquarters and manufacturing operations in
Minneapolis.


.I 18684
.C
earn
.W
BIG B INC <BIGB> 4TH QTR JAN 31 NET.
    BIRMINGHAM, Ala., March 5 -
    Shr 23 cts vs 17 cts
    Net 1,742,000 vs 1,1512,000
    Sales 62.6 mln vs 53.6 mln
    Avg shrs 7,854,000 vs 6,617,000
    Year
    Shr 61 cts vs 61 cts
    Net 4,469,000 vs 4,039,000
    Sales 209.8 mln vs 175.4 mln
    Avg shrs 78,369,000 vs 6,610,000


.I 18686
.C
acq
.W
WILSHIRE <WOC> CHIEF NAMED TO JACOBS <JEC> BOARD.
    WASHINGTON, March 5 - Wilshire Oil Co of Texas, which has a
9.8 pct stake in Jacobs Engineering Group Inc, said its
chairman, Siggi Wilzig, was appointed to the Jabobs board.
    In a filing with the Securities and Exchange Commission,
Wilshire, which holds 417,100 Jacobs common shares, said Wilzig
was appointed to the Jacobs board of directors on March 3 after
the company's annual shareholder meeting.
    Wilshire also said that Jacobs Chairman Joseph Jacobs has
agreed to recommend a second Wilshire nominee for election to
the board if the person was found to be qualified.
 


.I 18687
.C
retail
.W
FEBRUARY U.S. RETAIL SALES NOT SIGN OF UPTURN.
     BY SUSAN ZEIDLER, Reuters
    NEW YORK, March 5 - U.S. retailers posted stronger than
expected sales in February, but not enough to prompt analysts
to change their expectations of sluggish sales growth for the
first half of 1987.
     "My feeling is that it (February) borrowed some of the
business we normally see later in the quarter and the real
strength of general merchandise sales will be in the second
half of 1987," said Bear Stearns and Co analyst Monroe
Greenstein.
    "I don't think March will be as strong because Easter falls
in April this year," said Morgan Stanley analyst Walter Loeb.
   Analysts generally average the sales results of March and
April to account for the variation of Easter's occurrence.
    Analyst Edward Johnson of Johnson Redbook Associates said
sales for February rose between six and 6.5 pct, compared to a
3.6 pct increase last year.
     Analysts noted that February is considered a small,
transitory month between winter and spring.
    In addition, sales comparisons were boosted by an
especially soft February last year which was adversely affected
by severe weather.
    Apparel sales outshone other product groups in sales,
according to retailers and analysts.
    "February's strong sales reflected a lot of fresh
merchandise on the shelves and higher consumer income due to
tax reductions," said Greenstein of Bear Stearns.
    Analysts expect apparel sales to remain good as sales of
durable and houseware items grow softer due to the continuing
high levels of consumer debt.
     May Department Stores Co <MAY> and K Mart Corp <KM> were
among the strong performers, posting comparable store sales
gains of 9.4 pct and 8.2 pct, respectively. May had an overall
sales gain of 15.0 pct and K Mart had a 13.1 pct sales gain 
last month.
    "Favorable consumer response to our merchandise programs
continued to positively impact our sales comparisons. IN
addition to the strong contribution by K Mart stores, all our
specialty retailing companies had excellent February sales,"
said K Mart chairman Bernard Fauber.
    Sears Roebuck and Co <S> posted a 4.9 pct increase.
"Domestic sales were led by better than average increases in
apparel, home fashions and hardware and especially strong
catalog sales," said Sears chairman Edward Brennan.
    Analysts were a little disappointed by J.C. Penney Co Inc
<JCP> which started out with especially strong sales early in
the month. Penney posted a 5.5 pct increase on a comparitive
store basis and a 5.3 pct gain in overall sales.
    Penney chairman William Howell said, "store sales were
strongest during the early part of the month, while catalog
demand was consistently strong throughout the period.
    Store sales activity varied throughout the country, ranging
from good in the East to weak in the depressed southwest.
    Analysts also said gross profit margins were high as
retailers were not overly promotional due to leaner inventories
than a year ago.
    "February is not a big month seasonally but these numbers
suggest a fairly good trend for consumer spending," said Drexel
Burnham Lambert analyst Jeff Edelman.
    FEBRUARY SALES FOR MAJOR U.S. RETAILERS
    STORE          PCT      1987       1986
 SEARS             4.9      1.8 BILL   1.8 BILL
 K MART            13.1     1.5 BILL   1.3 BILL
 WAL-MART          44.0     885 MLN    615 MLN
 JC PENNEY         5.3      780 MLN    741 MLN
 FEDERATED         9.6      720 MLN    657 MLN
 MAY               15.0     632 MLN    550 MLN
 DAYTON HUDSON     19.5     602 MLN    504 MLN
 ZAYRE             25.7     327 MLN    260 MLN
 MONTGOMERY WARD   11.1     277 MLN    249 MLN


.I 18688
.C
earn
.W
QUARTZ ENGINEERING AND MATERIALS <QRTZ> 1ST QTR.
    TEMPE, Ariz., March 5 - Qtr ended Dec 31
    Shr nil vs nil
    Net loss 59,922 vs loss 357,203
    Revs 714,263 vs 926,964


.I 18689
.C
acq
.W
KODAK <EK> BUYS STAKE IN ENZON <ENZN>.
    ROCHESTER, N.Y., March 5 - Eastman Kodak Co said it has
acquired an 18.7 pct equity interest in Enzon Inc, a
pharmaceutical company specializing in protein therapy.
    Kodak said it secured worldwide marketing rights for three
of Enzon's PEG enzymes used in the treatment of oxygen toxicity
disorders, hyperuricemia and gout.
    The company said it acquired two mln Enzon shares for 15
mln dlrs, with loans to Enzon of two mln dlrs and interest of
30,000 dlrs credited against the purchase price.
    Kodak said the drugs covered by the marketing rights are in
initial stages of the U.S. Food and Drug Administration
approval process.  It said the investment should provide the
necessary capital to complete the FDA review process and
provide a marketing outlet for the drugs.
    The drugs are PEG-superoxide disdmutase and PEG-catalase,
for use against oxygen toxicity disorders that cause the
often-fatal tissue damage associated with severe burns, organ
transplants, heart attacks and trauma, and PEG-uricase, for
treatment of gout and other conditions caused by the buildup of
high levels of uric acid in the body.


.I 18691
.C
earn
.W
GEMCRAFT INC <GEMH> YEAR NET.
    HOUSTON, March 5 -
    Shr 42 cts vs 1.21 dlrs
    Net 2,317,000 vs 5,847,000
    Sales 360.0 mln vs 282.4 mln
    Avg shrs 5,463,000 vs 4,829,000
    NOTE: 1986 net includes 4,700,000 dlr pretax charge from
writedown of land and abandonment of land and pretax charges of
5,800,00 dlrs from pending rescission offer, settlements with
U.S. agencies, adjustment of the prior booking of residuals
arising from collateralized mortgage obligation bond issues,
writedowns of land held by a joint venture, startup costs
associated with entering new markets, an increase in reserves
for customer service and writeoffs and reserves for
mortgage-related receivables to reflect current market values.


.I 18693
.C
earn
.W
APPLIED SOLAR ENERGY CORP <SOLR> 1ST QTR NET.
    CITY OF INDUSTRY, Calif., March 5 - Qtr ended Jan 31
    Shr profit nine cts vs loss 30 cts
    Net profit 317,000 vs loss 997,000
    Sales 6,338,000 vs 3,119,000
    Note: 1986 net includes extraordinary gain of 90,000 dlrs,
or two cts per shr.


.I 18694
.C
earn
.W
PACIFIC NUCLEAR SYSTEMS IN <PACN> 4TH QTR LOSS.
    FEDERAL WAY, Wash., March 5 -
    Shr loss 19 cts vs profit seven cts
    Net loss 851,000 vs profit 227,000
    Revs 2,600,000 vs 4,800,000
    Year
    Shr loss 46 cts vs profit 19 cts
    Net loss 2,100,000 vs profit 600,000
    Revs 9,900,000 vs 15.9 mln


.I 18696
.C
gnp;trade;
.W
FED'S JOHNSON STRESSES PRICE STABILITY.
    WASHINGTON, March 5 - Federal Reserve Board Vice Chairman
Manuel Johnson said that maintaining price stability was
critical to achieving non-inflationary economic growth in the
world and said that progress was being made.
    "It is worth reiterating that the Federal Reserve's
promotion of price stability is critical to the successful
implementation of virtually all of the important ingredients
for growth," he told the Eastern Economic Association.
    Johnson said initial progress has been made on a variety of
fronts. "Federal Reserve monetary policy, the
Gramm-Rudman-Hollings legislation, the G-6 agreement, and the
Baker debt initiative for example all have moved us in the
right direction," he said. G-6 is comprised of U.S., Britain,
France, Japan, West Germany and Canada.
    On the budget deficit, Johnson said meeting precise
numerical goals was less important than a continuing commitment
toward slowing the growth of federal spending.
    There was evidence deficits as a pct of Gross National
Product were declining and would continue to drop, he said.
    But Johnson warned against reliance on inflow of foreign
capital to finance investment and the budget deficit and keep
interest rates stable.
    "This situation, however, cannot continue indefinitely.
Sooner or later progress must be made in controlling excessive
federal spending," he said.
    A disinflationary monetary policy should continue to be the
main objective of the Fed, Johnson said.
    He also said a more stable and sustainable alignment of
exchange rates was needed for long-term growth.
    On the trade deficit, Johnson warned against "quick fix"
solutions, which he identified as excessive dollar depreciation
or protectionist trade legislation.
    "What is important is that we attempt to maintain healthy
returns to capital and adopt policies encouraging genuine
economic growth," he said.
    Such an approach would finance the trade deficit but allow
for its gradual resolution over time.


.I 18697
.C
earn
.W
ANGLO AMERICAN GOLD INVESTMENT CO LTD <AAGIY>.
    JOHANNESBURG, March 5 - Year to Feb 28
    Shr 1,700.3 cts vs 1,533.0
    Pre-tax 373.3 mln rand vs 341.0 mln
    Net 373.3 mln vs 336.5 mln
    Tax nil vs 4.5 mln
    Final div 900 cts making 1,600 cts vs 1,450
    Div payable April 24, register March 20


.I 18699
.C
acq
.W
HARRIS CUTS TRIAD SYSTEMS <TRSC> STAKE TO 18 PCT.
    WASHINGTON, March 5 - Harris Associates L.P., a Chicago
investment advisory partnership, said it lowered its stake in
Triad Systems Corp to 1,355,296 shares, or 17.9 pct of the
total outstanding, from 1,463,962 shares, or 19.3 pct.
    In a filing with the Securities and Exchange Commission,
Harris said it sold a net 108,666 Triad common shares between
Dec 16 and Feb 23 at prices ranging from 10.00 to 14.25 dlrs a
share.
    It said its dealings in Triad common stock were done on
behalf of its advisory client.


.I 18704
.C
money-fx;yen;
.W
U.S. TREASURY SAYS NO COMMENT ON YEN VALUE.
    WASHINGTON, March 5 - A Treasury Department spokesman
refused comment on statements by Robert Ortner, undersecretary
of economic affairs for the Commerce Department, that the
Japanese yen was undervalued.
    Ortner, senior economist at the Commerce Department, told
an Export-Import Bank conference "the yen is still a little bit
undervalued," and "could go up another 10 or 15 pct."
    Asked for reaction, a Treasury spokesman said officials
were aware of Ortner's comments but had no intention of making
any comment on them.
    Ortner, who stressed he was expressing personal views, said
he thought the U.S. dollar was "fairly priced"
against most European currencies and added "I do not regard the
dollar as undervalued at this point against the yen," he said.
    But the yen should go up 10 or 15 pct in value, Ortner
said, because it is undervalued against the dollar.
    The United States and major trade allies West Germany,
France, Britain, Japan and Canada met recently in Paris to
discuss maintaining stability in international currency values.



.I 18708
.C
earn
.W
LIBRA BANK EXPECTS BRAZIL TO REACH DEBT ACCORD LONDON, March 5.
- London-based <Libra Bank Plc> said when announcing its 1986
annual results that it expected Brazil to reach agreement with
its creditors over debt repayments.
    "In recent years Brazil has demonstrated its ability to
generate surpluses sufficient to service its debt, and I have
no doubt that, in due course, it will reach an agreement with
the banks and its other creditors," Libra managing director
Peter Belmont said in a statement.
    Earlier the bank, which specialises in providing finance to
Latin America and the Caribbean, announced pretax profits of
43.9 mln stg for calendar 1986, against 43 mln in 1985.
    Libra's net worth increased by 24 pct to 134 mln stg last
year, and Belmont said the improvement to the bank's balance
sheet was due to profits being mostly retained in the bank, and
to the issue of 10 mln stg of cumulative redeemable preference
shares during the year.
    Libra is a consortium bank --National Westminster Bank Plc
<NWBL.L>, Chase Manhattan Bank N.A. <CMB>, Royal Bank of Canada
<RY.TO>, Swiss Bank Corp <SBVZ.Z>, Westdeutsche Landesbank
Girozentrale <WELG.F>, <Mitsubishi Bank Ltd>, <Bancomer SNC>,
<Banco Itau SA>, <Credito Italiano SpA> and <Banco Espirito
Santo e Comercial de Lisboa> all have shareholdings.


.I 18709
.C
acq
.W
IDEA INC <IDEA> TO BUY PRIVATE FIRM.
    TORRANCE, Calif., March 5 - IDEA Inc said it signed a
letter of intent to buy privately-held Structural
Instrumentation Inc.
    The purchase, for an undisclosed sum, will be made mostly
with IDEA common stock, the company said.
    IDEA said the purchase will add about 32 cts per share to
its fiscal 1988 earnings.
    IDEA reported earnings of four cts per share for the
quarter ended October 31, 1986.


.I 18715
.C
acq
.W
DUCOMMUN INC <DCO> SELLS DIVISION.
    CYPRESS, Calif., March 5 - Ducommun Inc said it sold its
Airdrome Parts Co division to a group of investors headed by
Airdrome's management for a cash price of 12 mln dlrs.
    Ducommun said the sale, coupled with its sale last month of
Metermaster, were steps taken to improve the company's balance
sheet and that no further sales are being contemplated.


.I 18716
.C
earn
.W
HOOPER HOLMES SHERLOCK INC <HOOP> 4TH QTR NET.
    BASKING RIDGE, N.J., March 5 -
    Shr 22 cts vs 25 cts
    Net 472,000 vs 454,000
    Revs 16.2 mln vs 15.2 mln
    Avg shrs 2,135,315 vs 1,835,325
    12 mths
    Shr 71 cts vs 70 cts
    Net 1,393,000 vs 1,285,000
    Rwevs 61,805,000 vs 55,367,000
    Avg shares 1,960,319 vs 1,835,325


.I 18719
.C
acq
.W
TEXON ENERGY <TXON> IN TALKS ON ACQUISITION.
    DALLAS, March 5 - Texon Energy Corp said it has entered
into a preliminary agreement to purchase an 80 pct interest in
a privately-held specialty plastics manufacturing company it
did not name.
    Texon said completion of the acquisition is subject to the
consent of banks and third parties and the acquisition would be
made for promissory notes and common stock.


.I 18721
.C
earn
.W
ALLIED <ALD> AFFILIATE RESTATES LOSS LARGER.
    HOUSTON, March 5 - Allied-Signal Inc's 49.7 pct owned
<Union Texas Petroleum Co> affiliate said it has restated its
fourth quarter and full-year losses and revenues to increase
the provision for the proposed settlement of a price dispute
involving Indonesian liquefied natural gas.
    It said the restated increases the provision against 1986
fourth quarter earnings to 23.5 mln dlrs from 15.5 mln dlrs
estimated earlier.
    Union Texas said its fourth quarter loss was increased to
29.5 mln dlrs from 21.5 mln dlrs reported previously and
revenues reduiced to 214 mln dlrs from 228 mln dlrs.
    Union Texas said for the full year it restated its loss to
57.5 mln dlrs from 49.5 mln dlrs and revenues to 1.26 billion
dlrs from 1.27 billion dlrs.
    the restatement results from a tentative agreement reached
in February with Pertamina, the Indonesian state-owned
petroleum enterprise, and Japanese purchasers of LNG.
    Kohlberg Kravis Roberts and Co also owns 49.7 pct of Union
Texas and the remainder is owned by management.


.I 18722
.C
earn
.W
AMREP CORP <AXR> 3RD QTR JAN 31 NET.
    NEW YORK, March 5 -
    Shr 12 cts vs 34 cts
    Net 787,000 vs 2,250,000
    Revs 23.6 mln vs 23.6 mln
    Nine mths
    Shr 70 cts vs 1.06 dlrs
    Net 4,598,000 vs 6,974,000
    Revs 73.1 mln vs 73.6 mln
    NOTE: Share adjusted for three-for-two stock split in
December 1986.


.I 18725
.C
earn
.W
ICI <ICI> SEES GROWTH IN PHARMACEUTICALS.
    LOS ANGELES, March 5 - Imperial Chemical Industries PLC
expects earnings from its pharmaceuticals operations to grow  
to about 35 pct of world profits within the next five years
compared with a current 30 pct, chairman elect Denys Henderson
told financial analysts.
    "Over the next five years we expect to launch one major new
product each year," Henderson said.
    He also said research and development spending in this
business segment will be increased to 14 pct of total sales
income in 1987 from 13 pct, or 130 mln sterling, in 1986.
    ICI, the world's fifth largest chemicals firm in terms of
sales, recently reported 1986 profits of about 888 mln dlrs on
15 billion dlrs in sales, compared with income of 817 mln dlrs
on 15.87 billion dlrs in sales a year earlier.
    Sales in the United States totaled about three billion
dlrs, ICI executives said.
    In addition, Henderson said overall corporate growth will
come from ICI's research and development activities, but the
company intends to continue to grow through an acquisition
program.
    ICI spent just under one billion dlrs for acquisitions
during 1986, the largest of which was the 580 mln dlr purchase
of Cleveland, Ohio-based Glidden Inc, a paints, resins and
coatings company, from <Hanson Trust PLC>.
    ICI financial director Alan Clements said the company's
borrowing limits are at a level of about 6.3 billion sterling,
1.5 billion of which have already been used.
    While the company has no current plans for a major
acquisition, "we are ready to move quickly in the acquisition
field if the need arises," Clements said.


.I 18726
.C
earn
.W
SAFECARD SERVICES <SFCD> SETS SPLIT, UPS PAYOUT.
    FORT LAUDERDALE, Fla., March 5 - SafeCard Services Inc said
its board declared a three-for-two stock split and is
maintaining the quarterly dividend on post-split shares at the
same six cts it now pays for an effective 50 pct increase.
    Both the split and the dividend are payable April 30 to
holders of record March 31.


.I 18727
.C
earn
.W
WILTON ENTERPRISES INC <WLTN> 2ND QTR JAN 31 NET.
    WOODRIDGE, ILL., March 5 -
    Oper shr profit two cts vs loss 31 cts
    Oper net 72,000 vs loss 1,130,000
    Sales 7,896,000 vs 9,333,000
    1st half
    Oper shr profit 32 cts vs profit eight cts
    Oper net profit 1,187,000 vs profit 299,000
    Sales 21.3 mln vs 26.0 mln
    NOTE: Current year net excludes tax credits of 54,000 dlrs
in quarter and 945,000 dlrs in year.


.I 18728
.C
ship
.W
ROTTERDAM PORT SUBSIDY TO END JULY 1 - MINISTER.
    ROTTERDAM, March 5 - Dutch Social Affairs Minister Louw de
Graaf announced he is withdrawing the annual 10 mln guilder
labour subsidy for Rotterdam's strike-hit general cargo sector
as from July 1.
    Late last month de Graaf said that if the dispute was not
settled by Monday this week he would withdraw the subsidy.
    The chairman of the port employers' organization, SVZ,
Jacques Schoufour, said he was unhappy with the decision and
added there was now no alternative to proceeding with
redundancy plans.
    The series of strikes in the sector started on January 19
in protest at employers' plans to make 800 redundancies from
the 4,000-strong workforce by 1990 starting with 350 this year.
    Meanwhile, the port and transport union, FNV, attacked loss
figures given for the port for this year.
    The figures, issued by accountants on behalf of the SVZ,
put total losses for last year at 34 mln guilders and in 1985
at 37 mln. Earlier, the employers had put the figure at around
30 mln.
    The FNV said the actual losses were nearer 17 to 20 mln and
said the employers had inflated the figures as part of their
plan to restructure completely the port's general cargo sector.


.I 18730
.C
earn
.W
S.A.Y.<SAYI> TO TAKE 3RD QTR LOSS FROM SALE.
    LEOMINSTER, MASS., March 5 - S.A.Y. Industries Inc said it
expects a loss of about two mln dlrs in its third quarter ended
February 28 from the proposed sale of its Omnilab Inc health
care unit.
    S.A.Y said its board of directors approved the unit's sale
because Omnilab was losing about 140,000 dlrs a quarter.
    "We no longer see a near-term prospect for a reasonable
return on our investment," Romilly Humphries, S.A.Y. president
and chief executive officer said.
    S.A.Y. said proceeds from the sale would be used to
increase the company's market share in automotive products
packaging and diversify its packaging capabilities.


.I 18734
.C
earn
.W
SONESTA INTERNATIONAL HOTELS CORP <SNST> 4TH QTR.
    BOSTON, March 5 -
    Shr profit 26 cts vs loss 86 cts
    Oper net profit 780,000 vs loss 2,609,000
    Revs 12.2 mln vs 17.1 mln
    Year
    Oper shr profit 5.28 dlrs vs loss 1.11 dlrs
    Oper net profit 16.1 mln vs loss 3,311,000
    Revs 64.9 mln vs 69.8 mln
    NOTE: 1986 year net excludes 598,000 dlr tax credit.
    1986 net includes pretax gains on sale of property of
2,330,000 dlrs in quarter and 24.5 mln dlrs in year.


.I 18738
.C
earn
.W
<DOMCO INDUSTRIES LTD> 1ST QTR JAN 31 NET.
    MONTREAL, March 5 -
    Shr four cts vs 12 cts
    Net 248,000 vs 647,000
    Revs 23.7 mln vs 21.9 mln


.I 18740
.C
acq
.W
UNICORP AMERICAN <UAC> ACQUISITION ADVANCES.
    NEW YORK, March 5 - Unicorp American Corp said it has
signed a definitive agreement for the previously-announced
acquisition of Lincoln Savings Bank.
    The company said the transaction is still subject to
regulatory approvals.


.I 18741
.C
acq
.W
FIRST EASTERN CORP <FEBC> COMPLETES ACQUISITION.
    WILKES-BARRE, Pa., March 5 - First Eastern Corp said it has
completed the acquisition of Peoples Bank of Nanticoke, Pa., in
an exchange of 11 First Eastern shares for each Peoples share.
    Peoples has assets of about 24 mln dlrs.


.I 18743
.C
acq
.W
BISHOP GRAPHICS <BGPH> COMPLETES STORE SALE.
    WESTLAKE VILLAGE, Calif., March 5 - Bishop Graphics Inc
said it completed the sale of its Newport Beach Art Supply
Center to Standard Brands Paint Co's <SBP> Art Store unit.
    Terms were not disclosed.
    Bishop also said it has opened a new sales and service
office in Irvine, Calif.
   


.I 18744
.C
ship
.W
STRIKING BRAZILIAN SEAMEN HOLD PAY TALKS.
    SAO PAULO, March 5 - Striking Brazilian seamen, who say
they have made idle 158 ships and halted Brazilian exports,
today held pay talks in Rio de Janeiro with Labour Minister
Almir Pazzianotto, union officials said.
    Jorge Luis Leao Franco, a senior official of the National
Merchant Marine Union, told Reuters he was optimistic the talks
would lead to an end of the stoppage, which began last Friday.
    Brazil's 40,000 seamen are seeking a pay rise of 275 pct.
    The union official said the strike had halted a total of
158 vessels, including 50 in Brazil's main port, Santos, and
about 50 more in Rio de Janeiro.
    Abroad, six ships lay idle, in the Netherlands, Spain,
Venezuela, France and South Africa, he said.
    Economic analysts said the strike was of serious concern to
the government, which has already had to suspend interest
payments on part of Brazil's foreign debt following a drastic
deterioration in the country's trade balance.
    The head of the National Merchant Marine Authority, Murilo
Rubens Habbema, was quoted in today's Gazeta Mercantil
newspaper as saying that if the strike continued foreign ships
could be authorized to transport Brazilian exports.
    "Brazil is living through a crisis at the moment, and it is
not conceivable that exports be hit," he said.
    "But even using foreign ships we must not forget that we are
going to lose foreign exchange paying freight charges abroad,
and all this through the fault of the seamen," Rubens Habbema
said.
    A spokesman for the port of Santos, which has been the
scene of labour unrest and congestion in recent months, said
movement of ships out of the port was running at about half its
normal level of 12 ships a day.
    He said a total of 76 ships were either waiting at anchor
on moored in the harbour.


.I 18745
.C
dlr;money-fx;
.W
******FED'S JOHNSON SAYS DOLLAR IS VERY CLOSE TO APPROPRIATE EXCHANGE RATE LEVEL .
Blah blah blah.

.I 18750
.C
earn
.W
BROWN GROUP INC <BG> VOTES REGULAR DIVIDEND.
    ST. LOUIS, MO., March 5 -
    Qtly div 37-1/2 cts vs 37-1/2 cts prior qtr
    Pay 1 April
    Record 16 March


.I 18751
.C
earn
.W
BLOCKER ENERGY CORP <BLK> YEAR NET.
    HOUSTON, March 5 -
    Oper shr profit 11 cts vs loss 2.45 dlrs
    Oper net profit 3,594,000 vs loss 81.9 mln
    Revs 38.5 mln vs 48.2 mln
    NOTE: 1986 net excludes 68.5 mln dlr gain from debt
extinguishment.
    1985 net includes 72.0 mln dlr writedown of drilling rigs.


.I 18753
.C
earn
.W
LTX CORP <LTXX> 2ND QTR JAN 31 LOSS.
    WESTWOOD, Mass., March 5 -
    Shr loss 28 cts vs loss 32 cts
    Net loss 2,585,000 vs loss 2,885,000
    Sales 27.6 mln vs 23.5 mln
    Avg shrs 9,352,000 vs 9,049,000
    1st half
    Shr loss 63 cts vs loss 94 cts
    Net loss 5,867,000 vs loss 8,405,000
    Sales 51.9 mln vs 43.7 mln
    Avg shrs 9,349,000 vs 8,966,000
    NOTE: Prior year net includes tax credits of 1,827,000 dlrs
in quarter and 5,347,000 dlrs in half.


.I 18754
.C
trade
.W
******YEUTTER SAYS U.S. BUDGET DEFICIT REDUCTION KEY TO TRADE DEFICIT SOLUTION.
Blah blah blah.

.I 18755
.C
earn
.W
CALPROP CORP <CPP> 4TH QTR NET.
    LOS ANGELES, March 5 -
    Shr 40 cts vs 25 cts
    Net 1,369,602 vs 628,193
    Revs 12.5 mln vs 4,909,369
    Avg shrs 3,460,217 vs 2,610,913
    Year
    Shr 97 cts vs 54 cts
    Net 2,952,830 vs 1,414,369
    Revs 37.0 mln vs 13.5 mln
    Avg shr 3,031,494 vs 2,609,313
    Note: Prior qtr and year per share figures restated for 10
pct stock dividend of December 1986.


.I 18756
.C
earn
.W
SIS CORP <SISB> YEAR NET.
    WESTLAKE, Ohio, March 5 -
    Shr one ct vs nil
    Net 9,949,000 vs 3,799,000
    Revs 15.5 mln vs 13.5 mln


.I 18757
.C
earn
.W
AMOSKEAG CO <AMOS> SETS QUARTERLY.
    NEW YORK, March 5 -
    Qtly div 30 cts vs 30 cts prior
    Pay March 31
    Record March Five


.I 18758
.C
earn
.W
MEDTRONIC INC <MDT> SETS QUARTERLY.
    MINNEAPOLIS, March 5 -
    Qtly div 22 cts vs 22 cts prior
    Pay April 30
    Record April 10 


.I 18760
.C
earn
.W
SCITEX CORP <SCIXF> 4TH QTR LOSS.
    NEW YORK, March 5 -
    Shr loss 46 cts vs loss 1.17 dlrs
    Net loss 4,990,000 vs loss 12.8 mln
    Revs 47.0 mln vs 42.3 mln
    Year
    Shr loss 3.08 dlrs vs loss 1.28 dlrs
    Net loss 33.7 mln vs loss 13.3 mln
    Revs 132.8 mln vs 132.5 mln
    Avg shrs 10.9 mln vs 10.4 mln
    NOTE: Includes losses of 501,000 vs 83,000 in qtr and 2.2
mln vs 83,000 in year from equity of 50 pct-owned companies.


.I 18762
.C
acq
.W
STANLEY WORKS <SWK> MAKES ACQUISITIONS.
    NEW YORK, March 5 - Stanley Works said it has acquired Acme
Holding corp, a maker of sliding and folding door hardware, and
the designs, patents and other righs of Plan-A-Flex Designer
Co, which provides kits for home design and remodeling
projects.
    It said Acme had 1986 sales of over 50 mln dlrs.
    Terms were not disclosed.


.I 18764
.C
earn
.W
ANITEC IMAGE TECHNOLOGY CORP <ANTC> SETS PAYOUT.
    BINGHAMTON, N.Y., March 5 -
    Qtly div 7-1/2 cts vs 7-1/2 cts prior
    Pay April 10
    Record March 27 


.I 18765
.C
earn
.W
GREEN MOUNTAIN POWER CORP <GMP> SETS QUARTERLY.
    SOUTH BURLINGTON, Vt., March 5 -
    Qtly div 45 cts vs 45 cts prior
    Pay March 31
    Record March 20 


.I 18766
.C
earn
.W
DUAL-LITE INC <MDT> SETS QUARTERLY.
    NEWTOWN, Conn., March 5 -
    Qtly div eight cts vs eight cts prior
    Pay May 11
    Record April 24 


.I 18768
.C
earn
.W
SCIENCE MANAGEMENT CORP <SMG> 4TH QTR OPER NET.
    BASKING RIDGE, N.J., March 5 -
    Oper shr profit 14 cts vs loss 31 cts
    Oper net profit 374,000 vs loss 707,000
    Revs 19.1 mln vs 15.5 mln
    Avg shrs 2,610,000 vs 2,560,000
    Year
    Oper shr profit 20 cts vs loss 69 cts
    Oper net profit 530,000 vs loss 1,376,000
    Revs 69.1 mln vs 64.3 mln
    Avg shrs 2,603,000 vs 2,565,000
    NOTE: Excludes gain of 309,000 dlrs vs loss 72,000 dlrs in
qtr and gains of 458,000 dlrs vs 23,000 dlrs in year from tax
loss carryforwards. Includes gains of 76,000 dlrs and 378,000
dlrs in 1985 qtr and year, respectively.


.I 18770
.C
earn
.W
CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET.
    NEW YORK, March 5 -
    Oper shr 1.18 dlrs vs 58 cts
    Oper net 2,266,000 vs 1,037,000
    Revs 45.8 mln vs 41.4 mln
    Avg shrs 1,924,000 vs 1,800,000
    NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from
benefit of tax loss carryforward.
    Results for Tel Aviv, Israel-based company translated at
rate of one dlr to 1.485 new Israeli shekels.


.I 18771
.C
dlr;money-fx;yen;
.W
NEW CURRENCY PROBLEM SEEN AMONG U.S, EUROPE, JAPAN.
    By Eric Hall, Reuters
    TOKYO, March 5 - The highly visible drama involving the
yen's sharp rise against the U.S. Dollar is obscuring the fact
that the Japanese currency has hardly budged against major
European currencies, thus creating a new set of exchange rate
distortions, Japanese and European research officials said.
    The officials, looking beneath the rhetoric of statements
by the Group of Five (G-5) industrial nations, told Reuters the
currency movements of the past two years are also creating a
fundamentally new world trade picture, which is throwing up new
trade tensions and imbalances.
    Trade figures show that the new currency alignments are
already changing the Japan-U.S. Trade axis into a Japan-
European Community (EC) axis, to the discomfort of Europe.
    In many ways, not least in terms of rare international
cooperation, the September, 1985 New York Plaza pact between
the U.S., Japan, West Germany, Britain and France to cut down
the value of the dollar was a historic one.
    But it is the underlying peaks and troughs of the major
currency movements which lay bare the real picture, in which
the Plaza pact appears as an event of prime importance, but not
necessarily central significance, the officials said.
    The officials said that when the Plaza agreement took
place, the dollar was already on its way down. The agreement
simply helped it on its way. Senior EC financial expert in
Tokyo Tomas de Hora has watched the movements closely.
    "You have to look at the dollar's peak compared with now,
and that was well before Plaza," he said.
    On February 25, 1985, the dollar peaked against the yen at
263.15 yen. On September 20, the Friday before Plaza, it was
242. Since then, despite massive Bank of Japan intervention and
periodic market frights about further G-5 concerted action, the
dollar trend has been down, down, down.
    Yet the ECU is now around 173.4 yen. The historical cross
rates for sterling and the mark tell much the same story. The
European currencies are moving back up against the yen.
    The close relationship between exchange rates and trade
flows makes it difficult to see which is driving which, but
undoubtedly the trade equation between the big three is
changing. In 1986, Japanese imports and exports with the EC
both grew by around 50 pct in dollar terms, five pct in yen.
This gave Japan a 16 billion dlr trade surplus.
    Last January, Japanese exports to the EC totalled half of
of sales to the U.S, against about a third in recent years.
    Trade with the U.S in 1986 rose 23 pct for exports and 12
pct for imports in dollar terms, but fell 13 pct for exports
and 21 pct for imports in yen terms.
    "The basic meaning for Europe is that Japanese firms have a
tremendous interest in exporting to Europe, where every unit
sold maximises profits in yen terms, which is what is important
to them. Suddenly, instead of the U.S., It is Europe that is
laying the golden egg," said de Hora.
    The EC is worried. EC business also had a remarkable year
in Japanese sales, but this can be explained partly due to its
start from a small base, compared with total Japan-U.S. Trade.
    The Japanese think EC firms are now more competitive than
U.S. Firms, a factor which is aggravating the exchange rate
imbalance, and which will cause problems.
    "This currency alignment between Japan and the EC is
reflecting the excellent performance of the EC countries. But
therefore, Japanese goods may keep their price competitive
edge," said Azusa Hayashi, Director of the First International
Economic Affairs Division of the Foreign Ministry. "If you want
my objective view, I don't expect a drastic improvement in our
trade imbalance. Last year, we asked for moderation in exports,
and this year we may have to do so again," he said.
 REUTER...

.I 18774
.C
earn
.W
TANDEM COMPUTERS <TNDM> SEES HIGHER NET.
    NEW YORK, March 5 - Tandem Computers Inc said it expects
higher earnings and revenues in its second fiscal quarter
ending March 31 against a year ago.
    "We feel we will continue to see higher growth in the
quarter," James Treybig, president and and chief executive
officer, told a meeting of securities analysts.
    In the second fiscal quarter last year, Tandem earned
9,950,000 dlrs or 29 cts per share on revenues of 176.3 mln
dlrs.
    Treybig declined to offer specific projections for the
quarter but he said the results might be lower than those for
the first quarter of fiscal 1987, when Tandem earned 27.1 mln
dlrs or 58 cts a share. He said Tandem's second quarter is
traditionally slower than the first.
    L.F. Rothschild Unterberg Towbin analyst Frederic Cohen
estimated Tandem's second quarter net at 40 to 45 cts per
share. For the full year, he said he expects the computer maker
to earn about 2.40 dlrs a share. In fiscal 1986, Tandem earned
1.44 dlrs a share.
    Treybig, who founded the Cupertino, Calif.-based company,
said he has seen a rebound in computer orders in the United
States. "The U.S. economy is picking up, and buying decisions
are being made. We didn't see that a year ago," he said.
    The executive said Tandem will increase its research and
development spending to about 100 mln dlrs this year from 87
mln dlrs in fiscal 1986.
    He said the company plans to introduce several products,
including two low-end systems and a data base that uses the SQL
programming language, an industry standard. Tandem also won a
major order from the <Bank of Tokyo>.



.I 18775
.C
interest
.W
******FED'S JOHNSON SAYS HE DOES NOT SEE INCREASING PRESSURE ON INTEREST RATES.
Blah blah blah.

.I 18776
.C
oilseed;sugar;cotton;groundnut;trade;
.W
AUSTRALIA ATTACKS U.S. GATT FARM RULES EXEMPTION.
    GENEVA, March 5 - Australia accused the U.S. of increasing
protectionism on agricultural products and called for an end to
Washington's special 32-year exemption from certain GATT rules
on agricultural trade.
    Robert Arnott, Australia's delegate to the General
Agreement on Tariffs and Trade (GATT), made the appeal at a
special annual meeting which reviews the 1955 U.S. waiver.
    "Australia today said the United States' goals of reducing
U.S. barriers to agricultural trade were being contradicted by
actions which in fact increased protection in trade in
agriculture," the Australian delegation said in a statement.
    "The United States section 22 waiver is one of the basic
flaws in the GATT coverage of agriculture," Arnott told the
meeting.
    Arnott said the waiver had continually been used as a
justification for "dubious protective measures" by the U.S. He
listed a recent Dairy Export Incentive Program and steps to
close the U.S. sugar market to imports.
    He also told Reuters the waiver allowed Washington to
impose quotas on imports of farm products where it had domestic
support programs. This covered imports of dairy products,
peanuts, cotton and sugar.
    Asked to comment, Michael Samuels, U.S. ambassador to the
GATT, told Reuters: "These charges have been made since the very
beginning. The waiver is part of domestic U.S. agricultural
policy, part of our law when we joined the GATT".
    "We have agreed to put the waiver on the table during the
Uruguay Round and invite other countries to do the same with
their programs. We can negotiate them all," Samuels added.
    Ninety-two nations are taking part in the four-year Uruguay
round of talks launched in Punta del Este last September.
Bargaining in agricultural goods and services (banking,
tourism, insurance) is included for the first time as well as
manufactured goods.


.I 18782
.C
acq
.W
FIRST UNION <FUNC> TO BUY FLORIDA BANK.
    JACKSONVILLE, Fla., March 5 - First Union Corp said it has
agreed to acquire First State Bancshares Inc of Pensacola,
Fla.,  and its First State Bank of Pensacola subsidiary for
about 457,000 common shares.
    First State has assets of about 110 mln dlrs.  The
acquisition, expected to be treated as a pooling of interests,
is expected to be completed in the third quarter of 1987
subject to approval by regulatory agencies and First State
shareholders.


.I 18783
.C
earn
.W
OPPENHEIMER RAISES NWA <NWA> EARNINGS ESTIMATE.
    NEW YORK, March 5 - Oppenheimer and Co analyst Robert
McAdoo raised his 1987 earnings estimate for NWA Inc, parent of
Northwest Airlines, following a strong quarterly report by the
company yesterday, according to Oppenheimer market strategist
Michael Metz.
    NWA shares rose 1-5/8 to 74-3/8 in active trading.
    McAdoo raised his 1987 estimate to 7.50 dlrs a share from
five dlrs and maintained a buy recommendation on the stock,
Metz said.
    McAdoo was traveling and could not be reached for comment.
    Yesterday, Minneapolis-based NWA reported fourth quarter
net of about 9.8 mln dlrs or 45 cts a share against a loss of
two mln dlrs or nine cts in the 1985 quarter.
    For the year, earnings rose to 76.9 mln dlrs or 3.26 dlrs
from 73.1 mln or 3.18 dlrs. The 1986 results include Republic
Airlines since NWA acquired it Aug 12, 1986.


.I 18784
.C
wheat;grain;
.W
HOUSE 0/92 FARM PROPOSAL SEEN SPARKING DEBATE.
    WASHINGTON, March 5 - A House Agriculture Committee meeting
later today to draft a disaster aid bill is expected to spark a
debate between lawmakers who want to expand the 0/92, or
"de-coupling," provision to cover feedgrains, and those who
oppose 0/92 or want it severely limited, Congressional sources
said.
    The disaster aid bill as it now stands calls for a one-year
0/92 pilot program for 1987 crop wheat and the 1988 winter
wheat crop. The bill would allow farmers to forego planting and
still receive 92 pct of deficiency payments.
    The administration has strongly urged that the bill be
expanded to feedgrains and to more than one year.
    It is difficult to tell in what form the 0/92 provision
will emerge from the committee, the sources said.
    Proponents of an expansion of 0/92 maintain there are large
estimated cost savings of such a bill -- ranging from estimates
by the administration of 200 to 500 mln dlrs.
    Opposition to a reopening of the 1985 farm bill at this
time is the major reason cited by those against an expansion of
the bill, committee staffers said.
    The 0/92 plan is scheduled to be discussed at 1530 EST. A
conflicting floor vote delayed the start of the meeting, and
staffers said it may have to be delayed even until next week.
    Such a delay would not bode well for proponents of an
expanded 0/92 program, since spring planting in many areas of
the country will be underway in the next few weeks and signup
for the 1987 wheat and feedgrains program ends March 30.
    Farmers are now making their planting decisions, so
something has to be done quickly if a 0/92 program is to be
implemented, an Agriculture Department source said.
    An expansion of 0/92 to feedgrains was opposed in last
week's subcommittee hearing on the bill, with subcommittee
chairman Dan Glickman, D-Kan., saying that more study of the
consequences of decoupling on feedgrains plantings was
necessary.
    Major commodity groups, including the National Corn
Growers, the American Farm Bureau and the National Cattlemen's
Association, have voiced strong opposition to 0/92.
    But proponents of an expanded 0/92 argue that the bill
currently is not equitable for all grains producers, so it
should be extended to other crops.
    There will be difficulty in limiting 0/92 to wheat, said
Gene Moos, aide to house majority leader Tom Foley, D-Wash.
    Projected cost savings, in the current atmosphere of try to
decrease farm expenditures, would also be hard to ignore in the
debate to expand the 0/92 application, Moos said.
    Rep. Charles Stenholm, D-Tex., may be planning to introduce
a bill to restrict 0/92 to only 1987 crop wheat, with the
argument that now is not the time to vote in favor of any major
changes in the farm bill.
    "Stenholm's bill is not a rejection of 0/92, only of the
timing," a congressional staff member said.
    Rep. Arland Stangeland (R-Minn.) is reported to have an
amendment to expand the 0/92 provision to 1987 and 1988
feedgrains.


.I 18787
.C
earn
.W
YELLOW FREIGHT <YELL> SEES LOWER 1ST QTR NET.
    ST. LOUIS, MO., March 5 - Yellow Freight System Inc said
its expects 1987 first quarter profits to be substantially
below the 14.2 mln dlrs or 50 cts a share earned in the same
period a year ago.
    Revenues have been depressed by recent price discounting,
added costs from expansion programs, lower shipping volumes and
increased costs associated with severe weather conditions
on the East coast, company officials told analysts here.
    An industry-wide rate hike of 2.9 pct, set for April one,
will cover Yellow Freight's upcoming labor and other costs but
will not make a contribution to operating margins, it said.


.I 18788
.C
pet-chem
.W
NOVA SUBSIDIARY RAISES U.S. POLYETHYLENE PRICES.
    CALGARY, Alberta, March 5 - Novacor Inc, a unit of <Nova,
an Alberta Corp>, said it would raise prices for U.S. customers
by five cts a pound on linear low-density and low-density
polyethylene, effective April 1.
    The company did not immediately disclose the actual new
prices.
    A Novacor official later said in reply to an inquiry that
the new prices, effective April 1, would range from 31 U.S. cts
a pound to about 38 cts.
    The official said the increase reflected improved market
conditions, although he noted the new prices would still be
lower than those of three years ago.


.I 18791
.C
acq
.W
MOULINEX STAKE SOLD TO SOME 50 INSTITUTIONS.
    LONDON, March 5 - The 20 pct stake in Moulinex SA <MOUP.PA>
sold by <Scovill Inc> of the U.S. Was spread among at least 50
institutional investors worldwide, a spokesman for brokers
James Capel said. Capel handled the deal.
    The buyers were based in centers ranging from Europe to
North America and Japan, he added.
    Moulinex's capital is split among Jean Mantelet, president
of the company, with 42 pct, along with private investors
holding 38 pct and the 20 pct which has just been sold, company
sources said earlier in Paris.


.I 18792
.C
acq
.W
TALKING POINT/PIEDMONT <PIE>.
    By Patti Domm, Reuters
    NEW YORK, March 5 - Carl Icahn's bold takeover bid for
USAir Group <U> has clouded the fate of Piedmont Aviation Inc,
which was being courted by USAir.
    Yesterday, Icahn's Transworld Airlines Inc <TWA> made a 1.4
billion dlr offer for USAir Group. The move complicated a USAir
takeover offer for Piedmont, which was believed to be close to
accepting the bid.
    Today, USAir rejected Icahn's 52 dlr per share offer and
said the bid was a last-minute effort to interfere in its
takeover of Piedmont. Icahn was unavailable for comment.
    Piedmont fell one to 68-5/8 on volume of 963,000. TWA was
off 3/8 to 31-1/2. USAir fell 1-3/8 to 47-3/4 as doubt spread
it would be taken over.
    Analysts and market sources view the TWA bid as an attempt
to either trigger a counter offer from USAir or to attract a
suitor who might want both airlines once they merged.
   "The next move is either Icahn starts a tender offer or
Piedmont and USAir announce a deal," speculated one arbitrager.
    Some arbitragers said there is now some risk in the current
price of Piedmont since it is not clear that USAir's bid will
succeed.
    Piedmont's largest shareholder and other suitor, Norfolk
Southern Corp <NSC> has offered 65 dlrs per share for the
company. USAir offered 71 dlrs cash per share for half of
Piedmont stock, and 73 dlrs per share in stock for the balance.
    Some arbitragers, however, believe the depressed price of
Piedmont offers a buying opportunity since the airline is
destined to be acquired by someone. USAir, they said, is the
least likely to be bought.
    Icahn, who has long talked about further consolidation in
the airline industry, also offered USAir the alternative of a
three-way airline combination, including TWA and Piedmont.
    But Wall Street has given little credibility to Icahn's
offer, which lacked financing and was riddled with
contingencies.
    Still, he has succeeded in holding up a merger of two
airlines - both of which analysts said would fit well with TWA.
    "You can't discount him," said one arbitrager.
    Analysts, however, said Icahn would have to prove he is
serious by following through with his threats or making a new
offer. In making the offer for USAir, Icahn threatened to go
directly to shareholders for 51 pct of the stock at a lower
price if USAir rejected his offer.
    "It's clear Icahn wants to sell and he's bluffing," said
one arbitrager.
    Analysts said the 52 dlr per share offer was underpriced by
about six dlrs per share.
    Some analysts believe Icahn's proposed three-way airline
combination might face insurmountable regulatory hurdles, but
others believe it could be cleared if the companies are
acquired separately.
    "TWA would have to be the surviving company for the deal to
work," said one analyst.
    Analysts said such a merger would be costly and
complicated. TWA has the best cost structure, since Icahn
succeeded in winning concessions from its unions.
    In order for the other carriers to come down to TWA's wage
scale in a merger, TWA would have to be the surviving entity,
analysts said.
    Such a move does not necessarily free Icahn of TWA, they
said. They said he showed skill in reducing Ozark Airlines'
costs when he merged it into TWA last year, and he might be a
necessary ingredient for a merger to work.
    However, other analysts speculated the managements of
Piedmont and USAir would not tolerate Icahn as head of a new
company. They said a USAir acquisition of TWA might be a way
for him to exit the company if USAir's airline is then merged
into TWA.


.I 18793
.C
acq
.W
BAKER INT'L <BKO> HOPES TO COMPLETE MERGER.
    HOUSTON, March 5 - Baker International Corp treasurer Eric
Mattson said the company hoped to iron out snags in a proposed
merger with Hughes Tool Co <HT> but declined to say if or what
compromises might be acceptable to it.
    The proposed merger that would create a 1.2 billion dlr
oilfield services company was thrown into limbo yesterday when
Hughes management, balking at the terms of a government consent
decree, offered a counter-proposal to Baker.
    Earlier today, Hughes adjourned a shareholders meeting
called to vote on the proposed merger until March 11 and said
it hoped to resume negotitations with Baker.
    Hughes chairman W.A. Kistler told reporters that Hughes did
not want to sign the Department of Justice consent decree until
after Baker's submersible pump and drilling bit operations were
sold.
    Mattson told Reuters that Baker still believed a merger was
possible between the two giant oilfield service companies.
    "The company's position is we would like to see the merger
be completed, which is in the best interests of our
shareholders and their shareholders," Mattson said.
    "Our goal is for a merger to occur. Because of the
litigation, I can't go any further than that," he said.
    Baker filed a lawsuit in Texas state court late yesterday
to force Hughes to abide by terms of the proposed consent
decree.
    Mattson also declined to comment on whether the directors
of Baker and Hughes have scheduled any meetings to discuss the
merger.


.I 18794
.C
earn
.W
******LUCKY STORES INC REINSTATES QUARTERLY DIVIDEND AT 12.5 CTS PER SHARE.
Blah blah blah.

.I 18796
.C
earn
.W
HOMESTEAD FINANCIAL <HFL> UPS CASH DIVIDEND.
    BURLINGHAME, Calif., March 5 - Homestead Financial Corp
said it has increased the dividend on its Class A common shares
to 6-1/4 cts a share, from five cts prior, while declaring an
initial dividend on its Class B common stock of 3-3/4 cts a
share.
    Homestead said the two classes of stock emerged as part of
its recapitalization plan which also doubled the number of
authorized common, comprising both classes, to 11 mln shares.
    Homestead said the dividends are payable on April 6, to
shareholders of record March 20.
    Homestead also said that class b shareholders who want to
increase their dividends may exchange their shares for an equal
number of class A shares on or before March 20.


.I 18797
.C
earn
.W
ELECTRO-SENSORS INC <ELSE> YEAR OPER NET.
    MINNEAPOLIS, March 5 -
    Oper shr 52 cts vs 51 cts
    Oper net 626,013 vs 613,127
    Sales 4,544,929 vs 4,402,572
    NOTE: Earnings exclude extraordinary securities loss of
29,532 dlrs, or two cts a share vs a gain of 81,358 dlrs, or
seven cts a share



.I 18799
.C
oilseed;wheat;grain;corn;soybean;
.W
CHINA ADDS, CANCELS WHEAT COMMITMENTS - USDA.
    WASHINGTON, March 5 - China has added 90,000 tonnes of U.S.
wheat to its purchases for delivery in the 1987/88 season and
cancelled 30,000 tonnes of wheat purchases for delivery in the
1986/87 season, the U.S. Agriculture Department said.
    According to the department's Export Sales Report covering
transactions in the week ended February 26, China has
outstanding wheat commitments for the 1986/87 season of 30,000
tonnes and 420,000 tonnes for delivery in the 1987/88 season.
    The wheat season begins June 1.
    China has total corn commitments for 1986/87 of 1,011,200
tonnes and soybeans commitments of 157,500 tonnes.
    The season for corn and soybeans began September 1.


.I 18800
.C
crude
.W
OPEC PRESIDENT SAYS OUTPUT WELL BELOW CEILING.
    By Judith Matloff, Reuters
    LONDON, March 5 - Opec Conference President Rilwanu Lukman
said the group was producing well below the 15.8 mln bpd
ceiling it set in December, partly because liftings had been
delayed or postponed by customers unwilling to pay fixed Opec
prices.
    Lukman, during a brief visit to London on his way home from
Jamaica, told Reuters in a telephone interview that in
February, Opec had underproduced partly because members were
strictly abiding by production quotas and partly because they
were resisting the temptation to sell at discounts to official
prices of around 18 dlrs a barrel.
    "We are determined to stand firm by the (December) accord,"
he said. "I have spoken to every other Opec minister and they
are committed to making the accord work," he said.
    Lukman gave no specific figures for February output. He
said the Opec secretariat in Vienna was finalizing these
figures.
    Told of a Reuters survey published today which estimated
that Opec output so far this week was below 15 mln bpd, he
said; "That could well be correct."
    Opec"s news agency Opecna today issued a statement saying
group output was "well below" its ceiling in February. But it
gave no figures.
    But one source close to Opec indicated that February output
may have been between 15.3 and 15.5 mln bpd.
    The Reuter survey estimated Opec February output at around
16 mln bpd.
    Opec agreed in December to cut output by 7.25 pct to 15.8
mln bpd and to return to fixed prices starting February 1.
    Lukman said Qatar, Nigeria, Saudi Arabia and Iran had all
produced in February below their Opec quotas. Iraq, which said
it would not honour its 1.466 mln bpd quota under the December
pact, had produced less than had been anticipated, he said.
    Lukman said that some industry reports "may be correct" that
in February, Nigeria propuced 75-100,000 bpd below its 1.238
mln bpd quota, Saudi Arabia 500,000 bpd less than its 4.133 mln
allocation and Qatar 20 to 30 pct under its 285,000 bpd quota.
    He said that sweet crudes such as those produced by his
country were coming under price pressure because they were
currently officially priced above sweet North Sea grades and
the United States" West Texas Intermediate (WTI) crude.
    However, he said Opec in December had anticipated that
demand would be slack at this time of year for seasonal reasons
and expected the market to firm in two to three weeks.
    "We have to be patient for two or three weeks. The market is
now firming on actual fundamentals," he said, adding that he
expected it to go "up and up" even beyond official prices after
early April. This is when, traditionally, there is more demand
for gasoline-rich crudes such as Nigeria"s.
    The Opec President said producers such as Kuwait, Venezuela
and Indonesia were having less problems with output than
producers like his own country because they exported oil
products.
    Also, some of Venezuela"s heavy grades were outside the Opec
pricing system, he said.
    Lukman said that if refiner-buyers, now refusing to lift
some Opec oil at official prices, instead used their own stocks
and ran them down to "dangerous levels," they would eventually
have to buy Opec oil.
    "When they realise it is not a free-for-all (in the market)
they will realise they should buy now instead of paying more
later on," he said.
    Lukman, asked about industry reports that Nigeria was being
pressured by equity producers for better terms, said it was
important to know that terms with them were negotiable,
flexible and under constant review, not only when the market
seemed weak.
    He said that so far, no meeting of the seven-nation
ministerial differentials committee had been scheduled and that
such a meeting, now twice-postponed, was not a high priority
for Opec at the moment.
    "At this time, we have to get our priorities right," he said.
"The most important thing now is ensuring that the accord is
working, not dealing with a differential of cents between
grades."
    But if any Opec member raised concerns or objections over
the differential system, a meeting would be called, he said.


.I 18802
.C
earn
.W
LUCKY STORES INC <LKS> REINSTATES QUARTERLY DIV.
    DUBLIN, Calif., March 5 -
    Qtly div 12.5 cts vs nil
    Pay April 3
    Record March 16
    Note: in quarters preceeding 4th qtr, dividend was 29 cts.


.I 18803
.C
earn
.W
CARMEL CONTAINER SYSTEMS LTD<KML> YEAR OPER NET.
    NEW YORK, March 5 -
    Oper shr 1.18 dlrs vs 58 cts
    Oper net 2,266,000 vs 1,037,000
    Revs 45.8 mln vs 41.4 mln
    Avg shrs 1,924,000 vs 1,800,000
    NOTE: Excludes gain of 73,000 dlrs vs 290,000 dlrs from
benefit of tax loss carryforward.
    Results for Tel Aviv, Israel-based company translated at
rate of one dlr to 1.485 new Israeli shekels.


.I 18806
.C
sugar;livestock;carcass;l-cattle;
.W
CUBAN CATTLE THREATENED BY DROUGHT.
    HAVANA, March 5 - Over 750,000 head of cattle are suffering
the effects of a severe shortage of feed as a result of a
prolonged drought in the normally rich sugar and cattle
producing province of Camaguey, the newspaper Granma reported.
    The province produces 23 pct of Cuba's beef and is the
island's number two province in milk production. Granma said
20,000 head of cattle are now in imminent danger.
    The newspaper said a "cattle emergency" had been decreed and
the cattle are being rounded up.
    Some 110,000 head have been transferred to the sugar cane
conditioning centers where newly harvested cane is cleaned
before being sent to the mills. The cattle are being fed the
residue left after cleaning the cane stalks. 32,000 head have
been sent to nearby provinces of Las Tunas and Ciego de Avila.
    Despite Cuba's ambitous cattle development plans, beef
rationing has been in effect over the past 25 years. In Havana,
each Cuban receives approximately 3/4 lb of rationed beef every
18 days.
    In a major area hit by drought, San Miguel, practically no
rain has fallen in the past 14 months. Grazing lands are
parched and the region was unable to produce 117,000 tonnes of
silage projected in its annual plan.
    Granma said rainfall over the past year has been less than
50 pct of normal precipitation.


.I 18807
.C
orange
.W
U.S. TO SET ORANGE JUICE DUTIES MONDAY.
    WASHINGTON, March 5 - The Commerce Department on Monday
will set final dumping duties on frozen orange juice from
Brazil, department officials said.
    A preliminary duty of 8.54 pct was set last Oct 17 on the
imports, which run at about 700 mln dlrs a year. Commerce's
ruling on Monday will reset the duties on the basis of more
detailed cost information, industry officials said.
    The duties now are being assessed on a temporary basis,
pending a final ruling by the U.S. International Trade
Commission (ITC) on whether the imports are injuring the
domestic orange industry.
    The ITC ruled provisionally last June 18 that the domestic
industry was being injured by Brazilian orange juice imports.
    A complaint that the Brazilian imports were being dumped at
below costs on the U.S. market was filed on behalf of U.S.
growers by the Florida Citrus Mutual, a Lakeland, Fla., group,
Alcoma Packing Co, Inc, and Barry Citrus Products.
    U.S. officials say about half of the orange juice consumed
in the United States comes from Brazil.


.I 18808
.C
earn
.W
LONGVIEW FIBRE CO <LFBR> QUARTERLY DIVIDEND.
    LONVIEW, Calif., March 5 -
    Qtly div 40 cts vs 40 cts
    Pay April 10
    Record March 25


.I 18810
.C
earn
.W
BEI HOLDINGS LTD <BEIH> 1ST QTR JAN 31 NET.
    ATLANTA, March 5 -
    Shr 13 cts vs eight cts
    Net 1,364,712 vs 881,082
    Rev 11.6 mln vs 11.5 mln
    NOTE: Qtr includes extraordinary gain of 586,826 dlrs, or
six cts a share, versus 183,850 dlrs or two cts a share in
fiscal 1986's first qtr.


.I 18811
.C
nat-gas
.W
ENDEVCO <EI> AGREES TO BUY MISSISSIPPI PIPELINE.
    DALLAS, March 5 - Endevco Inc said it has agreed to acquire
a 17.5-mile, 16-inch pipeline in Marion and Pearl River
Counties, Mississippi, for undisclosed terms.
    The company said the pipeline was recently constructed from
the Poplarville gas field in Pearl River County to a proposed
interconnect with a pipeline operated by Occidental Petroleum
Corp's <OXY> United Gas Pipe Line Co subsidiary in Marion
County but has nmot been placed in service.
    Endevco said it plans to extend its existing Mississippi
Fuel Co System in southern Mississippi 18 miles to the new
pipeline.


.I 18813
.C
earn
.W
ATLANTIC CITY ELECTRIC CO <ATE> SETS PAYOUT.
    PLEASANTVILLE, N.J., March 5 -
    Qtly div 65-1/2 cts vs 65-1/2 cts prior
    Pay April 15
    Record March 19


.I 18814
.C
earn
.W
KEMPER CORP <KEMC> REGULAR PAYOUT SET.
    LONG GROVE, ILL., March 5 -
    Qtly div 15 cts vs 15 cts previously
    Pay May 29
    Record May Eight


.I 18815
.C
earn
.W
FFB <FFCT> SETS INITIAL QUARTERLY DIVIDEND.
    NEW HAVEN, Conn., March 5 - FFB Corp, parent of the First
Federal Bank of Connecticut FSB, said it declared an initial
quarterly dividend of five cts per share.
    The company said the dividend is payable March 31 to
holders of record March 17.


.I 18819
.C
earn
.W
*******UNION CARBIDE SAYS OPERATING PROFITS FOR 4th qtr WERE 181 MLN DLRS VS LOSS THREE MLN DLRS.
Blah blah blah.

.I 18820
.C
money-supply
.W
******MONEY MARKET FUND ASSETS ROSE 552.5 MLN DLRS IN LATEST WEEK TO 237.46 BILLION.
Blah blah blah.

.I 18822
.C
earn
.W
COMBINED INTERNMATIONAL <PMA> SEES STRONG 1987.
    CHICAGO, March 5 - Combined International Corp should have
another strong year, President Patrick G. Ryan told analysts,
although he declined to forecast earnings specifically.
    In 1986, the company reported operating income of 5.51 dlrs
a share, up from 4.84 dlrs a share a year earlier. Revenues
increased to 1.81 billion dlrs from 1.36 billion dlrs.
    Ryan said Combined is testing a direct response long-term
care product through its Union Fidelity Life Insurance Co and
has plans to offer it through Ryan Insurance Group.
    In answer to a question on Combined's possible exposure to
AIDS-related health claims, Ryan said it was "minimal" although
he conceded that every carrier who provides coverage is
vulnerable.


.I 18823
.C
money-fx;can;
.W
CANADA DLR DRIVEN BY FOREIGN BUYERS - WILSON.
    OTTAWA, March 5 - Finance Minister Michael Wilson said
large inflows of capital into Canada, principally into the
country's bond market, is a major reason behind the sharp
recovery in the Canadian dollar.
    He said the inflow of funds, mainly from Japan, Europe and
the United States, is the result of "confidence in the
direction this country is going in."
    "That is the reason why the (Canadian) dollar today is
higher than 75 cts (U.S.) compared to this time last year (when
it was) a little over 69 cts," Wilson told the House of Commons
daily question period.
    Figures released this week show foreigners purchased a
record 23.1 billion dlrs of Canadian bonds in 1986, more than
double the previous year, with Japan investing a record 9.5
billion dlrs in the market.
    Wilson was responding to opposition party questions about a
possible loss of jobs from the rise in Canadian investment
abroad. Canadian investment, including the buying of foreign
companies, stocks and bonds, rose to 12.53 billion dlrs from
6.19 billion dlrs in 1985.
    The minister said the flow of funds from abroad would
generate many new jobs in Canada.


.I 18826
.C
earn
.W
CHARTWELL GROUP LTD <CTWL> 4th qtr net.
    CARLSTADT, N.J., March 5 -
    Shr nine cts vs three cts
    Net 549,000 vs 72,000
    Rev 7.0 mln vs 2.8 mln
    Year
    Shr 49 cts vs 32 cts
    Net 2,441,000 vs 801,000
    Rev 19.6 mln vs 9.7 mln
   


.I 18827
.C
acq
.W
PITT-DES MOINES INC <PDM> TO ACQUIRE STEEL UNIT.
    PITTSBURGH, March 5 - Pitt-Des Moines Inc said it will
acquire <Chicago Steel Corp> in exchange for a portion of its
stock.


.I 18828
.C
gold
.W
GIANT BAY <GBYLF> DETAILS GORDON LAKE DEPOSIT.
    VANCOUVER, British Columbia, March 5 - Giant Bay Resources
Ltd said a metallurgical study of its Gordon Lake gold deposit
indicated an overall recovery of 95 pct to 96 pct of the gold
can be achieved by either direct cyanidation of ore or
flotation followed by cyanidation of concentrate.
    Continuation of an underground program on the property will
begin in June, extending an existing drift along the
200-foot-level where the main ore zone was encountered, Giant
Bay said.
    The company did not elaborate on production figures for the
property.


.I 18834
.C
trade
.W
CONSENSUS BUILDS FOR WORLD AGRICULTURAL REFORM.
    PARIS, March 5 - Top U.S. and European farm trade and
government representatives called for a sweeping reform of
world agriculture to redress a critical demand and supply
imbalance.
    Speakers at a conference on world agricultural markets here
demonstrated a growing U.S.-European consensus on the need for
an urgent and collective overhaul of world farm trade and
production.
    "It is vital that we work together to bring more freedom and
harmony into the world agricultural trade...(if not) the
disruptions in markets may grow even more severe, the walls of
protection climb higher and the level of possible retaliation
become more harmful," U.S. Department of Agriculture Deputy
Administrator William Bailey said.
    Bailey said his attendance at the two-day meeting, which
ends tomorrow, demonstrated the U.S. recognises the need to
adjust its policies to the changing market environment.
    The need for urgent reforms is justified by the "imbalance
and tensions of the world economy," the secretary general of the
Organisation for Economic Cooperation and Development
Jean-Claude Paye said.
    And the forum for such a reform is the General Agreement on
Tariffs and Trade, he noted.
    Paye stressed the need for a progressive and joint
reduction of agricultural subsidies as well as social measures
to help farmers in unprofitable areas.
    Another possible solution would be to stop supporting farm
prices, allowing them to be fixed by supply and demand, and
instead help farmers through income support and adjustment
aids, proposed James Howard, Executive Vice-president of
Cargill (USA), one of the world's largest cereal houses.
    Franz-Josef Feiter, agricultural adviser to West German
Chancellor Helmut Kohl, agreed the European Community must take
greater heed of market constraints in fixing farm prices.
    However, "differentiated policy treatment is required" to
take account of large disparities in the situation around the
EC, he said.
    "Agriculture is an efficient sector of the European economy
and will remain so if the right policy is pursued within the
Community," he said.


.I 18836
.C
acq
.W
REXCOM <RXSC> TO ACQUIRE MARKETING FIRM.
    HOUSTON, March 5 - Rexcom Systems Corp said it agreed to
buy all the assets of Postech Inc from Comtech Group
International Ltd, a Canadian computer service company, for 70
pct of Rexcom's voting shares.
    The purchase will be for Rexcom common and preferred stock.
    Postech, the Canadian firm's U.S. marketing arm, sells
computerized restaurant management systems and security systems
in the U.S.
    The deal is subject to approval by the boards of Postech
and Rexcom.


.I 18837
.C
veg-oil;groundnut;
.W
ASCS BUYS PEANUT PRODUCTS, VEG OIL/SHORTENING.
    KANSAS CITY, March 5 - The Agricultural Stabilization and
Conservation Service (ASCS) bought 2.3 mln pounds of peanut
products at a cost of 2.1 mln dlrs and 7.4 mln pounds of
vegetable oil/shortening for 2.0 mln dlrs, for domestic
distribution April 1-15 and April 16-30, an ASCS spokesman
said.


.I 18838
.C
earn
.W
GENERAL REFRACTORIES CO <GRX> 4TH QTR NET.
    BALA CYNWYD, Pa., March 5 -
    Shr 17 cts vs 84 cts
    Net 709,000 vs 3,605,000
    Rev 86.4 mln vs 87.0 mln
    Year
    Shr 1.79 dlrs vs 1.10 dlrs
    Net 7,452,000 vs 4,695,000
    Rev 362.8 mln vs 316.0 mln
    NOTE: 1986 net includes gains from sale of non-operating
assets of 800,000 dlrsm versus 1.2 mln dlrs in 1985.
    1985 net includes nonrecurring cost of 2.6 mln dlrs and
provision for separation pay of 1.5 mln dlrs.


.I 18841
.C
money-fx;trade;
.W
YEUTTER SAYS BUDGET CUT KEY TO BETTER U.S. TRADE.
    NEW YORK, March 5 - A reduction of the U.S. federal budget
deficit will be needed to help eliminate the nation's huge
trade deficit, U.S. trade representative Clayton Yeutter said.
    Speaking to the New York Chamber of Commerce and Industry,
Yeutter said "Capital and trade flows are clearly
inter-releated now.
    "Unless we get the budget deficit down, we will not get the
trade deficit down."
    He did not elaborate on his views of the linkages between
the two deficits.
    Private analysts have said that the financing of large U.S.
budget deficits requires heavy capital inflows from overseas
investors through purchases of U.S. Treasury and, to a lesser
extent, other U.S. securities as well.
    "We'll make some progress in reducing the 170 billion dlr
trade deficit in 1987, but there's still a long way to go,"
Yeutter said.
    He said the problem must be approached on many fronts and
focus most strongly on U.S. and overseas fiscal and monetary
policies to foster economic growth, U.S. competitiveness and
the establishment of a "level playing field" for trade.
    The U.S. trade representative said the Federal Reserve
under Chairman Paul Volcker has done its part to improve the
trade situation by getting interest rates down.
    On the fiscal side, Yeutter said "the budget deficit is
still our biggest problem" and there has not been enough
progress toward reducing that deficit.
    In the international area, he said that "our major trading
partners could still do more to stimulate domestic growth."
Commenting on Japan, which is running around a 80 billion dlr
trade surplus with the United States, Yeutter said "Japan is
just not doing the job on the import side."
    Yeutter declined to comment on statements relating to the
dollar made earlier today by Commerce Dept undersecretary of
Economic Affairs Robert Ortner.
    In a Washington address to an Export-Import Bank sponsored
meeting, Ortner said he believed the dollar at current levels
was fairly priced against most European currencies, but that
the yen is 10 or 15 pct undervalued.
    "The market will determine the dollar's proper value in the
end," Yeutter said. However, he added that, if the U.S. and
other nations do not take the necessary steps to cut the U.S.
trade deficit, "the dollar will be the equalizer."
    Yeutter said there is no quick fix to the trade problem and
any resort to such tactics as protectionist trade legislation
or trade restrictions poses real dangers.
    He said "there's relatively little that Congress can do to
legislate a solution to the trade problem."
    Protectionist legislation will only provoke retaliation by
U.S. trading partners, Yeutter said.
    "There is no doubt in my mind about the willingness of our
trading partners to retaliate against unfair trade
legislation," Yeutter said, adding that policy flexibility is
essential in solving international trade problems.


.I 18843
.C
wheat;grain;
.W
HOUSE 0/92 FARM PLAN MARKUP DELAYED TILL TUESDAY.
    WASHINGTON, March 5 - A House Agriculture Committee meeting
to draft a disaster aid bill containing a controversial 0/92
provision has been postponed until next Tuesday, committee
staff members announced.
    The bill contains a provision implementing a 0/92 acreage
reduction plan for 1986 wheat and 1987 winter wheat, thereby
making payments available to farmers who were not able to plant
last year's winter wheat crop because of flooding.
    Controversy exists over whether the 0/92 provisions of the
bill should be expanded, cut back or left as is.


.I 18846
.C
earn
.W
UNION CARBIDE <UK> SAYS LONG TERM DEBT RISES.
    DANBURY, Conn., March 5 - Union Carbide Corp said its 1986
long term debt was 3.06 billion dlrs compared to 1.71 billion
dlrs in 1985.
    The company released its audited 1986 results.
    The company also said its long term debt was reduced by
about 1.5 billion dlrs from the third quarter to the end of the
year by asset sales and equity offerings. Union Carbide sold
its battery products, home and automobile products and
agricultural products businesses in 1986. In the fourth
quarter, it offered 30 mln shares of stock, raising about 650
mln dlrs.
    The asset sales and equity offering were part of a
recapitalization plan undertaken by the chemicals company last
year.
    Audited net earnings in 1986 of 496 mln dlrs or 4.78 dlrs a
share compared to a 1985 loss of 581 mln dlrs or 2.78 dlrs were
unchanged from the company's preliminary earnings report made
on Jan 28. The earnings results for the fourth quarter were
also unchanged.
    Included in the 1986 numbers are a 564 mln dlr gain from
sale of the different businesses, a 270 mln dlr pension credit
and a charge of 473 mln dlrs from the purchase of long term
debt at a premium under the recapitalization.
    In the audited results released today, the company broke
down results by business segment.
    Operating profit in the fourth quarter for all of the
company's operations on a consolidated basis, before corporate
and interest expense and taxes, was 181 mln dlrs against a loss
of three mln dlrs in the 1985 quarter.
    In the year, operating profit was 791 mln dlrs compared to
a loss of 253 mln dlrs in 1985.
    In a statement, the company said it defeated a hostile
takeover attempt, by GAF Corp <GAF>, and recapitalized the
company, adding, "While all this was going on, our continuing
businesses performed very soundly, with substantial operating
profit improvement over 1985."
    Carbon products posted operating profit of eight mln dlrs
in the quarter, down from 29 mln dlrs, and 49 mln dlrs in the
year against a loss of 146 mln dlrs.
    Chemicals and plastics had fourth quarter operating profit
of 122 mln dlrs compared to a year-ago loss of 49 mln dlrs. In
the year, chemicals and plastics earned 472 mln dlrs against
losses of 142 mln dlrs in 1985.
    Operating income at industrial gases rose to 64 mln dlrs
from 55 mln in the quarter and to 276 mln dlrs from 222 mln in
the year.
    The company's specialties and services segment cut its
losses in the quarter to 13 mln dlrs from 40 mln dlrs and in
the year to three mln dlrs from 181 mln dlrs.
    Eliminations of business conducted between the company's
industry segments contributed two mln dlrs to fourth quarter
1985 profits but did not affect the 1986 quarter. The
eliminations caused losses of three mln dlrs compared to six
mln dlrs in the year.
    The 1985 operating results include a host of unusual
writeoffs and depreciation charges totaling 134 mln dlrs in the
quarter and 906 mln dlrs in the year.
    Capital expenditures rose to 524 mln dlrs in 1986 from 501
mln dlrs.
    By segment, spending at carbon products fell to 42 mln dlrs
from 57 mln dlrs and spending fell at specialties and services
to 126 mln dlrs from 143 mln dlrs.
    At chemicals and plastics, expenditures rose to 147 mln
dlrs from 133 mln and at industrial gases they rose to 209 mln
dlrs from 168 mln dlrs.
    The company's cash and equivalents fell to 299 mln dlrs at
year end from 430 mln dlrs at year end 1985, after a net
decrease of 131 mln dlrs during 1986.
    Current assets at year-end fell to 2.41 billion dlrs from
4.43 billion dlrs and current liabilities fell to 1.88 billion
dlrs from 2.38 billion.


.I 18847
.C
earn
.W
FIRST COMMERCIAL BANCORP <FCOB> 4TH QTR LOSS.
    SACRAMENTO, Calif., March 5 -
    Shr loss 49 cts vs loss 1.36 dlrs
    Net loss 928,835 vs loss 1,648,665
    Year
    Shr loss 33 cts vs loss 4.21 dlrs
    Net loss 593,533 vs loss 4,970,951
    Assets 203.9 mln
    Loans 151.5 mln
    Deposits 192.0 mln
    Note: 1986 loss included non-recurring expenses of
1,275,000 dlrs comprised of asset write-downs, legal proceeding
and a 930,000-dlr provision for loan losses.


.I 18851
.C
earn
.W
HARCOURT BRACE JOVANOVICH INC <HBJ> 4TH QTR NET.
    ORLANDO, Fla., March 5 -
    Shr 23 cts vs 28 cts
    Net 8,877,000 vs 9,530,000
    Revs 342 mln vs 278.9 mln
    Avg shrs 39.4 mln vs 34 mln
    Year
    Shr 1.91 dlrs vs 1.62 dlrs
    Net 70.5 mln vs 50.5 mln
    Revs 1.3 billion vs 990.5 mln
    Avg shrs 37 mln vs 31.3 mln
    NOTE: On Dec one, 1986, company acquired Holt, Rinehart and
Winston and W.B. Saunders and The Dryden Press and their
foreign subsidiaries. By including these companies for the
single month of December 1986, 4th qtr earnings were raised by
seven cts per shr and for the year by eight cts per shr.


.I 18852
.C
acq
.W
LONE STAR<LCE> AGREES TO BUY CONCRETE OPERATIONS.
    GREENWICH, Conn., March 5 - Lone Star Industries Inc said
it has agreed to acquire ready-mixed concrete and aggregates
businesses from <Riedel International Inc> of Portland, Ore.,
for an undisclosed amount of cash.
    Lone Star's one sentence statement gave no further details
and company spokesmen were not available.


.I 18853
.C
earn
.W
SHELL FRANCAISE RETURNS TO PROFIT IN 1986.
    PARIS, March 5 - Shell Francaise <SFMF.PA>, a subsidiary of
<Shell Petroleum NV>, returned to the black last year for the
first time since 1982, with parent company net profit of 43 mln
francs against losses of 968 mln in 1985 and 1.07 billion in
1984. In 1982 it posted a profit of 329 mln.
    The company said in a statement that cash flow had improved
strongly although it remained negative at 182 mln francs
against 1.34 billion in 1985, due largely to improved
performances by its main profit centres.
    It said the results could have been even better had it not
been for the collapse of refining and sales profit margins in
the last quarter of the year.
    In 1986 Shell sold 14.74 mln tonnes of oil products against
14.52 mln tonnes in 1985.
    The company said the results were in line with its targets
for the second year of its three-year recovery programme.
    Meanwhile, <Societe Shell Chimie) said it also returned to
profit in 1986, for the first time since 1976, posting net
profit of 160 mln francs against a 1985 loss of 57 mln. No
other details were available.


.I 18854
.C
grain;corn;
.W
BRAZIL SUSPENDS IMPORT OF 500,000 TONNES MAIZE.
    SAO PAULO, March 5 - Brazil has suspended the importation
of 500,000 tonnes of maize ordered last year because of the
excellent domestic maize harvest expected this year,
Agriculture Minister Iris Resende said.
    The Agriculture Ministry expects a record maize crop of
27.7 mln tonnes, a 36 pct increase on last year's crop of 20.3
mln tonnes.
    Brazil's total grain crop is expected to be 65.3 mln
tonnes. "This is a record in the history of Brazilian
agriculture," a ministry spokesman said.
    Resende announced suspension of the maize imports at a news
conference in Brasilia yesterday.
    The ministry spokesman said he had no other details on the
maize transaction.


.I 18855
.C
earn
.W
FAIRMOUNT CHEMICAL CO INC <FMTC> 4TH QTR LOSS.
    NEWARK, N.J., March 5 -
    Shr loss 28 cts vs loss 29 cts
    Net loss 584,100 vs loss 459,500
    Sales 1,339,800 vs 1,6390,800
    Year
    Shr loss 64 cts vs loss 79 cts
    Net loss 1,314,700 vs loss 1,237,100
    Sales 7,249,600 vs 6,311,500


.I 18858
.C
earn
.W
HUMANA INC <HUM> REGULAR DIVIDEND.
    LOUISVILLE, Ky., March 5 -
    Qtly div 19 cts vs 19 cts in prior qtr
    Payable May one
    Record April two


.I 18859
.C
money-supply
.W
******U.S. COMMERCIAL PAPER FALLS 1.27 BILLION DLRS IN FEB 25 WEEK, FED SAYS.
Blah blah blah.

.I 18860
.C
money-supply
.W
******N.Y. BUSINESS LOANS RISE 523 MLN DLRS IN FEB 25 WEEK, FED SAYS.
Blah blah blah.

.I 18865
.C
acq
.W
FINANCIAL CORP <FIN> UNIT BUYS BRANCHES.
    IRVINE, Calif., March 5 - Financial Corporation of
America's American Savings and Loan Association unit said it
signed a definitive agreement to buy three retail savings
branches from Gibraltar Financial Corp's <GFC> Gibraltar
Savings unit.
    The purchase, which must be approved by the Federal Home
Loan Bank and the California Department of Savings and Loans,
would increase American Savings' deposits by about 40 mln dlrs.
    The branches are in La Jolla, La Mesa and San Juan
Capistrano, Calif.


.I 18866
.C
livestock;carcass;
.W
PORK DELEGATES VOTE ON FARM BILL, FARM CREDIT.
    CHICAGO, March 5 - Delegates from the National Pork
Producers Council, NPPC, attending the American Pork Congress
in Indianapolis, voted overwhelmingly to recommend the U.S.
congress not to change the farm bill. While there are no
specific pork items in that legislation, feed grain prices
directly affect pork producer profits, the NPPC said.
    Don Gingerich, a delegate from Iowa, said "to have
unpredictable changes come along periodically makes it very
difficult to plan and causes a lot of disruption."
    Other members said the farm bill has some imperfections but
that's a price pork producers are willing to pay for
legislative stability, an NPPC spokesman said.
    Delegates also passed unanimously a resolution that
Congress and the administration should act swiftly to identify
problems in the farm credit system.
    Farm Credit Task Force chairman and newly elected Vice
President of the NPPC Ray Hankes, said delegates wanted a
program that all commodity groups can work with and bring a 
resolution to this problem with legislators in Washington.
    Hankes added that the National Pork Producers Council will
work to save farmers and keep credit available, but not to save
or create any one credit system.



.I 18867
.C
crude
.W
CONFIDENCE IN OPEC FIRMS U.S. ENERGY FUTURES.
    NEW YORK, March 5 - Renewed confidence in OPEC's ability to
limit production helped U.S. energy futures settle above
yesterday's closing prices, according to analysts.
    They also said the heating oil contract found additional
support from a short-covering rally on the close.
    April crude closed 24 cts higher to 17.75 dlrs. April
heating oil was 1.47 cts higher to 47.91 cts a gallon.
    "Most traders expected follow through profit-taking from
yesterday but the market found suport from bullish reports that
OPEC is producing within its quota," said Simon Greenshields, a
vice president with Morgan Stanley and Co Inc.
    News today, including OPEC President Rilwanu Lukman
statement that OPEC February production did not exceed its
official quota of 15.8 mln barrels per day, helped bouy prices,
traders said. A Reuter survey found OPEC production in early
March was 14.7 mln bpd.
    In addition to short-covering, heating oil found support
from traders buying it against sales of gasoline and crude, as
well as from expectations for continued drawdowns in stocks as
refiners shut down for maintenance, traders said.
    Unleaded gasoline for April finished 0.55 cent higher to
51.24 cts a gallon.


.I 18870
.C
dlr;money-fx;
.W
TREASURY SAYS ONLY REAGAN, BAKER SPEAK ON DLR.
    WASHINGTON, March 5 - The U.S. Treasury repeated a White
House statement that only President Reagan and Treasury
Secretary James Baker are authorized to speak on the dollar.
    A Department spokesman was commenting on remarks by
Commerce Department Under-Secretary Robert Ortner that the yen
was undervalued 10 or 15 pct against the dollar but European
currencies were fairly priced against the U.S. currency.
    "As Larry Speakes said on January 14 this year, only two
people in this administration are authorized to speak on the
dollar and that is the president and the secretary of the
treasury," the spokesman told Reuters.


.I 18874
.C
oilseed;veg-oil;grain;meal-feed;corn;soybean;cotton;soy-meal;soy-oil;
.W
USDA COMMENTS ON EXPORT SALES .
    WASHINGTON, March 5 - Corn sales gained 2,494,900 tonnes in
the week ended February 26, the highest weekly total since
August 1984 and two and three-quarter times the prior week's
level, the U.S. Agriculture Department said.
    In comments on its Export Sales Report, the department said
sales of 1.0 mln tonnes to the USSR -- previously reported
under the daily reporting system -- were the first sales for
delivery to the USSR under the fourth year of the U.S.-USSR
Grains Supply Agreement, which began October 1.
    Japan added 689,700 tonnes to previous purchases and sales
to unknown destinations rose by 429,800 tonnes.
    Wheat sales of 362,400 tonnes for the current season and
151,000 for the 1987/88 season were down by more than half from
the previous week's combined sales, it said.
    Egypt, Japan and Iraq were the major wheat buyers for
delivery in the current year, while sales to China decreased by
30,000 tonnes for the current season, but increased by 90,000
tonnes for the 1987/88 season, which begins June 1.
    Net sales of soybeans totalling 274,200 tonnes equaled the
preceding week, but were nearly a third below the four week
average. Major increases were for Belgium, South Korea, Mexico
and Italy, it said.
    Soybean cake and meal sales of 103,700 tonnes were 2-3/4
times the previous week's marketing year low, but six pct less
than the four week average.
    Major increases for West Germany, Belgium, Spain, Italy and
Australia were partially offset by declines to unknown
destinations.
    Soybean oil sales of 5,400 tonnes were the result of
increases for Venezuela and reductions of 500 tonnes for
unknown destinations.
    Combined sales activity in cotton of 75,200 running bales
-- 44,700 bales for the current year and 30,500 bales for the
1987/88  bales -- were 56 pct below the prior week's good
showing, the department said.
    Major purchasers for the current season were South Korea,
Japan, Taiwan and Thailand, while South Korea and Indonesia
were the major buyers for the 1987/88 season, which begins
August 1.
   


.I 18876
.C
earn
.W
FAIRFIELD COMMUNITIES INC <FCI> 10 MOS DEC 31.
    LITTLE ROCK, Ark, March 5 -
    Shr loss 1.62 dlrs vs profit 83 cts
    Net loss 17.2 mln vs profit 8.3 mln
    Revs 264.0 mln vs 338.0 mln
    NOTE:Year ago figures based on 12 months ended February 28,
1986 because company changed reporting period to end December
31.
   1986 10 months loss includes 10.3 mln dlrs writedown of
certain assets.
                        


.I 18877
.C
earn
.W
CARVER CORP <CAVR> 4TH QTR NET.
    LYNNWOOD, Wash., March 5 -
    Shr 20 cts vs 17 cts
    Net 680,000 vs 533,000
    Sales 6,473,000 vs 5,996,000
    Year
    Shr 57 cts vs 84 cts
    Net 1,967,000 vs 2,099,000
    Sales 20.8 mln vs 19.0 mln


.I 18878
.C
earn
.W
******INTER-CITY GAS CORP 4TH QTR SHR 36 CTS VS 68 CTS.
Blah blah blah.

.I 18880
.C
acq
.W
UNICORP <UAC>, LINCOLN IN DEFINITVE PACT.
    NEW YORK, March 5 - Unicorp American Corp said it signed a
definitive agreement to acquire Lincoln Savings Bank FSB.
    Under terms of the agreement announced in January, Lincoln
would be acquired by a unit of Unicorp which is minority-owned
by Lincoln president Alton Marshall.
    The acquisition will take place through a voluntary 
conversion of Lincoln to a federally chartered stock savings
bank from a mutual federal savings bank.
    In connection with the conversion, Unicorp will contribute
150 mln dlrs in cash to Lincoln.


.I 18883
.C
money-supply
.W
******U.S. M-1 MONEY SUPPLY RISES 1.9 BILLION DLRS IN FEB 23 WEEK, FED SAYS.
Blah blah blah.

.I 18884
.C
money-supply
.W
******U.S. BANK DISCOUNT BORROWINGS AVERAGE 233 MLN DLRS A DAY IN MARCH 4 WEEK, FED SAYS.
Blah blah blah.

.I 18885
.C
coffee
.W
COFFEE FALL NOT SEEN AFFECTING COLOMBIA'S DEBT.
    BOGOTA, March 5 - The sharp fall in international coffee
prices will not affect Colombia's external credit situation,
finance minister Cesar Gaviria told reuters.
    He said the current depression on world coffee markets was
not totally unexpected and would have no immediate bearing on
Colombia's financial state which he described as sound.
    "Our foreign debt is high, but we can pay and I hope the
foreign banking community will maintain its position toward us,"
he said.
    Colombia, the only major latin american country not to have
rescheduled its external public debt, has a total foreign debt
of 13.6 billion dlrs.
    Calls for a rescheduling of the debt have come this week
from the opposition conservative party and the biggest trade
union following the coffee price drop. Gaviria said lower
coffee prices this year could mean a loss of 1.5 billion dlrs
in revenues for 1987.
    Gaviria submitted to the world bank and the inter-american
bank last week in new york a borrowing plan, for a total of
3.054 billion dlrs to be disbursed over the next four years,
which he said was approved.


.I 18886
.C
money-supply
.W
U.S. M-1 MONEY SUPPLY RISES 1.9 BILLION DLRS.
    NEW YORK, March 5 - U.S. M-1 money supply rose 1.9 billion
dlrs to a seasonally adjusted 738.5 billion dlrs in the
February 23 week, the Federal Reserve said.
    The previous week's M-1 level was revised to 736.6 billion
dlrs from 736.7 billion dlrs, while the four-week moving
average of M-1 rose to 736.7 billion dlrs from 735.0 billion.
    Economists polled by Reuters had forecast M-1 in a range
from down 500 mln dlrs to up 4.5 billion dlrs.
    The average forecast called for a 2.2 billion dlr M-1 rise.


.I 18888
.C
acq
.W
HUMANA <HUM> DECLARES SHAREHOLDERS RIGHTS PLAN.
    LOUISVILLE, Ky., March 5 - Humana Inc said its board
approved a shareholder rights plan, or so-called poison pill
plan, to ensure its shareholders receive fair treatment in the
event of a proposed takeover.
    Humana said it is now aware of any effort to gain control
of the company.
    Under the plan its board declared a dividend distribution
of one right for each outstanding common share held as of March
16. It said each right entitles holders to purchase a unit of
1/100 of a share of newly authorizes series A participating
preferred at 75 dlrs per unit.
    Humana said the rights become effective after an entity
acquires 20 pct or more of its outstanding common or tenders
for 30 pct of its stock. After such an acquisition, then each
right entitles holders to purchase securities of the company or
an acquiring entity having a market value of twice the right's
exercise price.
    Humana said the rights expire March 4, 1997, unless
redeemed earlier. It said the rights may be redeemed by the
company for one ct per right at any time prior to 10 days
following a public announcement that a 20 pct position has been
acquired.


.I 18889
.C
earn
.W
FREMONT GENERAL CORP <FRMI> 4TH QTR OPER NET.
    LOS ANGELES, March 5 -
    Oper shr profit 63 cts vs loss 1.15 dlrs
    Oper net profit 6,629,000 vs loss 12.4 mln
    Revs 23.6 mln vs 22.4 mln
    Year
    Oper shr profit 1.65 dlrs vs loss 1.28 dlrs
    Oper net profit 17.5 mln vs loss 13.8 mln
    Revs 93.1 mln vs 86.8 mln
    Note: Oper data does not include loss from discontinued
operations of 7,932,000 dlrs, or 73 cts per shr in 4th qtr
1985, loss of 40.5 mln dlrs, or 3.83 dlrs per shr in the 1986
year or gain of 104.3 mln dlrs, or 9.68 dlrs per shr in 1985.
Also does not include 4th qtr 1985 extraordinary loss of
1,028,000 dlrs, or ten cts per shr.


.I 18892
.C
acq
.W
GREAT WESTERN FINANCIAL <GWF> UNIT BUYS BANKS.
    BEVERLY HILLS, CALIF., March 5 - Great Western Financial
Corp's subsidiary Great Western Bank said it will purchase
three retail banking branches in south Florida with total
deposits of 90 mln dlrs.
    Great Western said it will purchase branches in Deerfield
Beach and Hollywood with approximately 80 mln dlrs in deposits
from Guardian Savings and Loan Association, and one in Palm
Beach with approximately 10 mln in deposits from Goldome
Savings Bank.


.I 18893
.C
acq
.W
HUGHES <HT> CHANGES STANCE ON MERGER AFTER SUIT.
    by Cal Mankowski, Reuters
    NEW YORK, March 5 - A one billion dlr lawsuit pushed
Hughes Tool Co into an about-face on its rejection of a
proposed merger with Baker International Corp <BKO>, Wall
Street analysts said.
    Last night, Hughes said the planned merger with Baker was
off. Baker then filed a suit seeking punitive damages from
Hughes for calling off the merger. At midday today Hughes said
it was still interested in the merger.
    The analysts also said Hughes may be worried that its
troubles could make it a takeover candidate.
    There was speculation today that Harold Simmons, the Dallas
investor, might try to acquire Hughes, but Simmons told Reuters
he is not interested.
    Simmons said he intends to file a 13-D with the Securities
and Exchange Monday reporting a stake of five pct or more in
some publicly traded company. He declined to identify the
target other than to rule out Hughes.
    One analyst said another factor in the latest Hughes
turnabout was Borg-Warner Corp <BOR>, which owns 18.5 pct of
Hughes. Borg-Warner ex-chairman J.F. Bere, who serves on the
Hughes board, is believed to favor the merger with Baker.
    Despite the Hughes statement that it is interested in a
merger, and Baker's response that a merger is still possibile,
analysts said no one could be certain where the situation was
going.
    "I think the merger is not going through," said Phil Pace,
analyst at Kidder, Peabody and Co. He said the merger "lost a
lot of its appeal" when the U.S. Department of Justice required
that Baker sell off its Reed Tool Co operation.
    Although the Reed operation is relatively small in view of
the total size of a combined Baker-Hughes, Pace said "30 to 40
pct of the cost savings are tied up in that."
    "They (Hughes) are obviously concerned about the lawsuit,"
said James Crandell, analyst at Salomon Brothers Inc.
"Apparently they are willing to continue discussions but
whether they will alter their position, I don't know.
    "It's getting a little confusing," said James Carroll,
analyst at PaineWebber Group Inc. He said the arguments cited
by Hughes yesterday for not doing the merger "tend to be weak."
Hughes said yesterday that as a condition of the merger it
wanted Reed Tool and other businesses sold prior to April 22,
the projected merger date. A government decree allowed a longer
period of time.
    Hughes contended it was better to formally combine the
companies with the status of Reed already settled. Baker
apparently sees no reason to speed up the sale.
    Carroll said Baker had previously estimated 110 to 130 mln
dlrs in savings if the companies were combined without selling
Reed. But he said Baker now thinks 75 to 85 mln dlrs will be
saved while Hughes sees a saving of only 50 to 60 mln dlrs.
    Carroll also noted that since the merger accord was first
signed "the outlook for the industry has improved materially."
Hughes may simply feel the pressure on the oil service industry
is lifting.


.I 18894
.C
acq
.W
ARMTEK <ARM> SELLS TIRE, TRUCK TIRE BUSINESS.
    NEW HAVEN, March 5 - Armtek Corp, formerly known as
Armstrong Rubber Co, said it signed agreements with <Condere
Corp> for the sale of its Natchez, Miss. tire plant and its S
and A Truck Tire Sales and Services Corp.
    Terms were not disclosed. Armtek spokesman John Sievers
said S and A is a 50 mln dlr business.
    Earlier this week, Armtek announced the sale of its
industrial tire and assembly business division to Dyneer Corp
of Scotsdale, Ariz.
    Cash proceeds from both sales will be used to reduce
outstanding debt.
     Under a long term supply agreement with Condere, it is
anticipated that truck tires produced at the Natchez plant will
be supplied to the Armstrong Tire Co, an Armtek operating
company, the company said.
    The closing is scheduled to be concluded by March 31, it
said.


.I 18896
.C
earn
.W
ELXSI LTD <ELXSF> 4TH QTR LOSS.
    SAN JOSE, Calif., March 5 -
    Shr loss four cts vs loss 34 cts
    Net loss 2,922,000 vs loss 19.9 mln
    Revs 4,071,000 vs 8,012,000
    Year
    Shr loss 23 cts vs loss 79 cts
    Net loss 17.3 mln vs loss 46.2 mln
    Revs 22.4 mln vs 28.6 mln


.I 18897
.C
earn
.W
<NEWSCOPE RESOURCES LTD> YEAR LOSS.
    CALGARY, ALBERTA, March 5 -
    Shr loss 94 cts vs profit 28 cts
    Net loss 6,319,337 vs profit 1,702,016
    Revs 2,899,513 vs 5,239,106
    Note: 1986 net includes 5,250,000 dlr writedown of oil and
gas properties.


.I 18898
.C
nat-gas
.W
FERC ISSUES TAKE-OR-PAY GAS POLICY PLAN.
    WASHINGTON, March 5 - The Federal Energy Regulatory
Commission (FERC) issued a proposed policy statement for the 
recovery of take-or-pay costs imposed by existing natural gas
contracts between producers and pipelines.
    It put out the statement, by 5-0 vote, for a 30-day comment
period. It also put out an alternative policy statement by
Commissioner Charles Stalon.
    FERC said in a press release that "the proposed policy
statement estblishes an exception to the commission's general
policy that take-or-pay buy-out and buy-down costs must be
recovered through pipeline' commodity sales rates."
    FERC added that "specifically, in cases where pipelines
assume an equitable share of buy-out or buy-down costs, the
commission proposes to permit the pipelines to recover the
remaining costs through their demand rates."
    It said it wanted guidelines for buying out and reforming
existing contracts to help spread the impact of these
take-or-pay costs in a responsible, fair and equitable way.
    Commission chairwoman Martha Hesse said "this proposal
represents the commission's sincere attempt to help the
industry through this difficult period of transition to a more
competitive market."
    Hesse said "it is my hope that our proposed policy will
encourage and guide the timely resolution of take-or-pay
contractual disputes that have impeded the industry's
transition to a more competitive environment.  It is vital to
the industry that we get this problem behind us."


.I 18900
.C
earn
.W
TIMES MIRROR CO <TMC> QUARTERLY DIVIDEND.
    LOS ANGELES, March 5 -
    Qtly div 41 cts vs 41 cts
    Pay June 10
    Record May 29


.I 18901
.C
earn
.W
INTER-CITY GAS CORP <ICG> 4TH QTR NET.
    TORONTO, March 5 -
    Shr 36 cts vs 68 cts
    Net 10.0 mln vs 16.1 mln
    Revs 441.6 mln vs 470.8 mln
    YEAR
    Shr 86 cts vs 1.77 dlrs
    Net 29.1 mln vs 44.1 mln
    Revs 1.43 billion vs 1.54 billion
    Note: 1986 fl-yr net includes 9.3 mln dlr writedown of U.S.
oil and gas properties partly offset by 1.1 mln dlr
extraordinary gain from tax gains and proceeds from sale of
Minnesota utility operations. 1985 net includes extraordinary
gain of 892,000 dlrs.
    Shr after preferred divs.


.I 18902
.C
earn
.W
BROWN TRANSPORT CO INC <BTCI> 4TH QTR NET.
    ATLANTA, March 5 -
    Shr profit 26 cts vs profit 10 cts
    Net profit 1,371,000 vs profit 482,000
    Revs 48 mln vs 45.7 mln
    Avg shrs 5.20 mln vs 5.15 mln
    12 mths
    Shr profit 1.05 dlrs vs loss 34 cts
    Net profit 5,454,000 vs loss 1,766,000
    Revs 191.7 mln vs 185.2 mln
    Avg shrs 5.20 mln vs 5.15 mln


.I 18906
.C
earn
.W
METRO MOBILE CTS INC <MMCT> FIRST QTR LOSS.
    NEW YORK, March 5 - Qtr ends Dec 31
    Shr loss 33 cts vs loss 16 cts
    Net loss 5,632,426 vs loss 2,373,358
    Revs 3,277,976 vs 1,535,550
    Avg shrs 16.9 mln vs 14.4 mln


.I 18908
.C
earn
.W
<SPAR AEROSPACE LTD> YEAR NET.
    TORONTO, March 5 -
    Shr basic 42 cts vs 1.41 dlrs
    Shr diluted 42 cts vs 1.33 dlrs
    Net 4,394,000 vs 13,070,000
    Revs 191.0 mln vs 223.3 mln


.I 18909
.C
acq
.W
PESCH UNIT SEEKS BALANCE OF REPUBLIC HEALTH.
    CHICAGO, March 5 - Alpha Health Systems Corp, a
wholly-owned subsidiary of Pesch and Co, said it submitted a
merger proposal to the board of REPH Acquisition Co, the parent
company of Republic Health Corp, which is 64 pct owned by Pesch
interests.
    The balance of REPH's common stock is owned by members of
Republic management, McDonnell Douglas Corp <MD>, Donaldson,
Lufkin and Jenrette and Pacific Asset Holdings L.P.
    Republic currently owns 44 hospitals and manages 46 other
facilities, in 25 states.
    Details of the proposal were not disclosed.  Company
representatives were not immediately available.
    The proposal provides that REPH would become a wholly-owned
subsidiary of Alpha and that the existing REPH common
stockholders would become stockholders of Alpha, it said.
    REPH's board has appointed a special committee to negotiate
terms of the proposed merger, Pesch said.
    Last year, Republic was acquired by REPH in a leveraged
buyout transaction led by Dr. LeRoy Pesch, the principal
shareholder of Pesch and Co.
    Alpha recently submitted a second offer to acquire the
stock of American Medical International Inc (AMI) at 22 dlrs a
share in cash and securities, which is still being considered
by American Medical's board, Pesch said.


.I 18910
.C
earn
.W
SPAR SEES SEES STRONG FIVE-YEAR GROWTH.
    TORONTO, March 5 - <Spar Aerospace Ltd>, reporting a
sharply lower 1986 profit, said it anticipated solid profit and
revenue growth during the next five years.
    "Looking to the longer term, Spar is confident that its
continuing concentration on advanced robotics, satellite-based
communications and electro-optical defense systems will lead to
significant growth in revenues and earnings over the next five
years," the company said.
    It also forecast higher 1987 sales due to an increased
order backlog. Revenues last year fell to 191 mln dlrs from
223.3 mln while profit fell to 4.4 mln dlrs from 13.1 mln.
    Spar added that lower development costs in the
communications group and a return to normal operations in gears
and transmissions and aviation services "will remove a serious
drain on profits" this year.
    It attributed its reduced 1986 earnings to communications
group losses resulting from continued heavy investment in new
products and market development, a four-month strike at its
Toronto plants and delays in receipt of authorization from
customers to start work on new programs.


.I 18912
.C
earn
.W
CHESAPEAKE UTILITIES CORP <CHPK> REGULAR DIV.
    DOVER, DEL., March 5 -
    Qtly div 28-3/4 cts vs 28-3/4 cts prior
    Pay April three
    Record March 13


.I 18913
.C
livestock;carcass;
.W
MEATPACKERS REJECT OCCIDENTAL <OXY> UNIT OFFER.
    CHICAGO, March 5 - United Food and Commercial Workers Union
Local 222 rejected a new contract proposal from Iowa Beef
Processors Inc and remain out of work, union spokesman Allen
Zack said.
    In mid-December, Iowa Beef, a subsidiary of Occidental
Petroleum Corp, closed its beef processing plant at Dakota
City, Nebraska, because it said "it had no alternative to
threats by meatpackers to disrupt operations."
    About 2,800 UFCWU members are affected by what the union
terms as a lockout.  A 3-1/2 year labor contract at the plant
expired December 13.
    Zack said IBP's proposal included elimination of a two-tier
wage structure, a 60 cent an hour wage cut for slaughterers and
a 45 cent an hour wage reduction for processors.
    The new proposal also included a bonus system of 1,000 dlrs
for workers who had been at the plant for two years, Zack said.
The annual turnover rate at the facility is 100 pct, he said.


.I 18914
.C
earn
.W
SWIFT INDEPENDENT PACKING CO <SFTPr> 1ST QTR NET.
    DALLAS, March 5 - Periods ended January 31
    Net 1,443,000 vs 3,539,000
    Revs 765.2 mln vs 685.8 mln


.I 18915
.C
acq
.W
******CHEMLAWN SAYS IT REJECTS 27 DLRS PER SHARE TENDER OFFER FROM WASTE MANAGEMENT.
Blah blah blah.

.I 18917
.C
trade
.W
FRANCE, YUGOSLAVIA COMMISSION TO BOOST TRADE.
    PARIS, March 5 - France and Yugoslavia agreed to set up a
joint economic commission as part of efforts to promote
commercial links and industrial cooperation between the two
countries.
    The French Finance Ministry said the commission, to be
composed of businessmen, was agreed during talks between
Foreign Trade Minister Michel Noir and Yugoslavian minister
without portfolio Egon Padovan.
    A ministry statement said both sides had agreed on the need
to boost trade links in keeping with an accord signed last year
calling for a 50 pct rise in commercial exchanges between the
two countries over the next six years.
    French trade with Yugoslavia has grown little over the past
two years.


.I 18921
.C
earn
.W
(CAMBIOR INC) FIVE MTHS DEC 31 NET.
    MONTREAL, March 5 -
    Shr 39 cts vs not given
    Net 8,801,000 vs not given
    Revs 33.2 mln vs not given


.I 18922
.C
acq
.W
CHEMLAWN <CHEM> REJECTS WASTE'S <WMX> OFFER.
    COLUMBUS, Ohio, March 5 -  ChemLawn Corp said its board
rejected Waste Management Inc's 27 dlr-per-share tender offer
and urged its shareholders not to tender their shares.
    ChemLawn said its board asked management and its financial
advisor, Smith Barney, Harris Upham And Co Inc, to seek other
purchasers of the company to maximize shareholder value.
    ChemLawn also said it adopted a shareholder rights plan, or
"poison pill," during a 120-intermin safeguard period its board
adopted to deter attempts to acquire the company through any
means other than an all-cash tender offer while it seeks other
purchasers.
    ChemLawn also said it began litigation against Waste
Management in federal court in Columbus, seeking injunctive and
other relief.
    The suit alleges, among other things, that certain Waste
Management officers and directors purchased ChemLawn's stock
before making the tender offer. ChemLawn claimed such purchases
possibly violated the officers' fiduciary duties and the
Securities and Exchange Commission's insider trading rules.
    Last week, Waste Management made a tender offer to acquire
ChemLawn for 27 dlrs per share or 270 mln dlrs.
    ChemLawn said its board was determined that Waste's offer
was inadequate and not in the best interest of shareholders,
and could "adversely affect" the interests of its employees,
suppliers, creditors, and customers.
    "Our board carefully reviewed Waste Management offer and
concluded that it does not fully reflect the value of the
company. We strongly urge our shareholders not to tender their
shares to Waste Management," said Chairman L. Jack Van Fossen.
    ChemLawn said its rights plan is designed to protect
shareholders against abusive tactics, such as "market
accumulations by Waste Management or others."
    Under the plan, one comon stock purchase right will be
distributed as a dividend on each outstanding share of ChemLawn
common.
    ChemLawn said its rights holders can buy a share of its
common for one dlr if any entity acquires 25 pct or more of its
commmon, other than by an all cash tender offer for all its
shares or an approved acquisition agreement by its board.
    It said the rights expire July three 1987, or 60 days after
they become exercisable if later than that date. It said its
board may redeem the rights for five cts per right any time
prior to their exercise date.
    ChemLawn said the plan will not be triggered by purchases
purusant to Waste Management's present tender offer.
    It said the dividend will be paid to shareholders of record
March 20.


.I 18923
.C
acq
.W
CONAGRA <CAG> TO ACQUIRE MONFORT <MMFT>.
    GREELEY, Colo., March 5 - ConAgra Inc agreed to acquire
Monfort of Colorado Inc in a stock transaction, both companies
said.
    According to the letter of intent signed by the companies,
ConAgra will acquire all of Monfort's 4.3 mln outstanding
shares for 10.75 mln of its own shares.
    Based on ConAgra's closing price of 34 dlrs today, the
transaction is worth about 356.5 mln dlrs. The merger is
expected to be completed in June, they said.
    The companies said the acquisition will result in a
restatement of ConAgra's earnings for the fiscal year ending
May 31, but the restatement is not expected to materially
change the previously reported, or upcoming, fiscal year-end
earnings. In fiscal 1986, ConAgra had net income of 105.3 mln
dlrs on sales of 5.9 billion dlrs.
    For its fiscal year ending August 1986, Monfort reported
25.1 mln dlrs in earnings on sales of 1.6 billion dlrs. The
company is one of the largest lamb and beef producers in the
U.S., producing, transporting and selling the products
domestically and internationally.


.I 18926
.C
wheat;grain;
.W
HOUSE 0/92 PLAN SEEN SCALED-BACK TO 1987 WHEAT.
    WASHINGTON, March 5 - Key members of the House Agriculture
committee have agreed to scale-back the 0/92 provision of a
pending disaster aid bill to cover only 1987 crop wheat, but a
broader 0/92 proposal is likely to be resurrected later,
Congressional sources said.
    The sources said key lawmakers including Reps. Glenn
English (D-Okla.), and Dan Glickman (D-Kan.) agreed to support
an amendment to be offered next week by Rep. Charles Stenholm
(D-Tex.) which would limit 0/92 only to producers of 1987 crop
winter and spring wheat.
    This would scale-back the 0/92 provision to the original
proposal by English allowing a pilot 0/92 program for 1987
wheat only. That provision was later broadened by the
subcommittee to include 1988 crop winter wheat.
    Under 0/92, a farmer can forego planting a crop but still
collect 92 pct of deficiency payments.
    Earlier today, the House Agriculture committee postponed
until next Tuesday a meeting to consider the disaster aid bill
and 0/92.
    The agreement to limit 0/92 to a wheat pilot program
follows vocal criticism of the proposal by some influential
farm groups who are concerned about the major impact of 0/92,
and by members of Congress wary of reopening the farm bill.
    Congressional sources said there has not been enough time
to study the implications of a broad 0/92.
    "The timing (of the proposal) is off," said one aide to a
House Agriculture committee member.
    However, several Congressional sources said they expect a
broader 0/92 provision to emerge again when the House
Agriculture committee is faced next month with the need to make
spending cuts in the agriculture budget for fiscal 1988 as part
of an overall deficit reduction package.
    Gene Moos, aide to House Majority leader Tom Foley
(D-Wash.), predicted agriculture's share of budget cuts may
exceed one billion dlrs.
    A broader 0/92 might be resurrected later because both the
Congressional Budget Office and the Reagan administration
estimate it would result in significant budget savings.
    A U.S. Agriculture Department official said 0/92 for all
1987 crops would save 300 to 400 mln dlrs and more than 1.5
billion dlrs over five years.
    Another factor which could affect the 0/92 debate is the
approach of planting season, Congressional sources said.
    Some officials said it already is late for implementation
of a 0/92 in 1987 because farm program signup ends March 31 for
wheat and feedgrains.
    If Congress approved 0/92 later in the year sign-up either
would have to be extended or reopened, sources said.


.I 18929
.C
crude;nat-gas;trade;
.W
FAVORED TRADE STATUS FOR MOSCOW STILL OPPOSED.
    WASHINGTON, March 5 - The Reagan administration wants to
encourage expanded trade with the Soviet Union but does not
believe Moscow yet warrants most-favored-nation treatment,
Deputy Secretary of State John Whitehead said.
    "It seems to me that more trade between us is better than
less trade," he told a forum on U.S.-Soviet trade relations.
    To that end, the administration in January allowed foreign
policy controls on the export of oil and gas equipment to the
Soviet Union to lapse, he said.
    Also, Washington and its allies are reviewing remaining
export controls in hopes of simplifying the list of prohibited
items and speeding up the licensing process, he said.
    Whitehead said, however, the prefential treatment that
comes with most-favored-nation status is out for the moment.
    U.S. law prohibits most-favored-nation status for countries
that restrict emigration and other rights.
    "What we have seen so far (in improved rights under Soviet
Leader Mikhail Gorbachev) are promising trends," he said.
    But, he added: "We don't know if they will continue, we
don't know how significant they will be."


.I 18930
.C
acq
.W
MCDONNELL DOUGLAS <MD> NOT APPROACHED BY PESCH.
    CHICAGO, March 5 - McDonnell Douglas Corp, which has a five
mln dlr investment in Republic Health Corp <REPH>, said it has
not been approached to sell its shares in Republic Health.
    Earlier, Alpha Health Systems Corp, a unit of Pesch and Co,
said it submitted a merger proposal to the board of REPH
Acquisition Co, the parent of Republic Health. LeRoy A. Pesch
is the principal stockholder of Pesch.
    "We have not been approached by Mr. Pesch or anybody else
with respect to our holdings" in Republic Health, a McDonnell
Douglas spokesman told Reuters.


.I 18931
.C
earn
.W
PARADYNE <PDN> PLEADS GUILTY TO CRIMINAL CHARGE.
    LARGO, Fla, March 5 - Paradyne Corp said it pleaded guilty
to criminal charges of conspiracy to defraud the Social
Security Administration and agreed to pay 1.2 mln dlrs in fines
and costs to the U.S. Government.
    The company also reached agreements in principle for an 8.1
mln dlr settlement of class action law suits.
    About 2.9 mln dlrs of the class action settlement will be
provided by Paradyne's insurance carrier. The settlement is
contingent on court approval after notice to class members, it
said.
     The criminal case settlement dismisses all charges
including bribery and false statement, except for conspiracy to
which Paradyne pleaded guilty.
    The criminal settlement includes the lifting of the
government's suspension, the dismissal of the federal civil
false claims suit and all charges against the individuals.
    Of the 2.9 mln dlrs the insurance carrier will provide for
the civil settlement, 750,000 dlrs will go to settle a
derivative lawsuit.
    For the year ended December 31, Paradyne reported a net
loss of 38.5 mln dlrs. The year-end results include an 8.0 mln
dlrs provision for future legal and or settlement costs to
cover the civil and criminal settlements announced today.
    Paradyne also said it named Jerry Kendall as president and
chief executive officer, succeeding Robert Wiggins who resigned
as chairman and chief executive officer as part of the
settlement of the indictment.
    Kendall formerly served as executive vice president and
chief operating officer.
    The company also said that due to the sluggish marketplace,
it does not expect to be profitable in the first quarter but is
optimistic about the outlook for the year.
    For the first quarter of 1986, the company reported net
income of 875,000 dlrs on sales of 66.0 mln dlrs.
    Wiggins was among five Paradyine executives who were
charged along with three former officers in a 1985 federal
indictment stemming from a 115 mln contract awarded to Paradyne
in 1981 to build a computer network for the Social Security
Administration.
    The men were accused of conspiring to bribe government
officials and defaud the Social Security Administration.
Wiggins and other defendants were also charged with providing
false testimony and obstructing justice during a Securities and
Exchange Commission investigation.
 
   Under the settlement announced today, federal prosecutors
agreed to defer all charges against Wiggins and three other
defendants under a one-year pretrial agreement.
    The charges would then be dropped if the defendants
successfully complete the probation period. Details of the
requirements in the agreement were not immediately available.
          


.I 18933
.C
crude;nat-gas;
.W
SOUTH AFRICAN FIRM TO CONTINUE TESTS.
    JOHANNESBURG, March 5 - South Africa's state-owned energy
firm Soekor said it would continue tests after striking oil
some 120 kms (75 miles) south-southwest of Mossel Bay.
    During production tests, about 5,000 barrels of oil and
five mln cubic feet of gas per day were produced, it said.
    "This oil discovery will be followed-up as soon as possible
by further seismic surveys and drilling. Should further
drilling and tests in the area yield positive results oil
production from a floating platform could be considered."
    Director General of Mineral and Energy Affairs Louw Alberts
announced the strike earlier but said it was uneconomic.


.I 18935
.C
crude
.W
GREECE REPEATS IT CAN DECIDE ON AEGEAN DRILLING.
    ATHENS, March 5 - Greece, replying to a warning from Turkey
that it will stop Athens from seeking oil in the Aegean Sea,
repeated today that it has an exclusive right to decide where
or when to drill in the area.
    A government spokesman said in a statement that if Ankara
believed Greece was contravening international law, it could
bring the issue before the courts.
    The spokesman was responding to a statement by Turkish
Foreign Ministry spokesman Yalim Eralp that Ankara would take
action to stop Greece's oil activities beyond its territorial
waters as they were a violation of the 1976 Berne accord.


.I 18936
.C
earn
.W
NCA CORP <NCAC> 4TH QTR LOSS.
    SANTA CLARA, Calif., March 5 -
    Shr loss 45 cts vs loss 1.34 dlrs
    Net loss 1,240,000 vs loss 3,621,000
    Revs 6,264,000 vs 4,626,000
    Year
    Shr loss 90 cts vs loss 2.01 dlrs
    Net loss 2,487,000 vs loss 5,406,000
    Revs 20.8 mln vs 21.7 mln


.I 18937
.C
earn
.W
BIOMEDICAL DYNAMICS CORP <BMDC> 4TH QTR NET.
    MINNEAPOLIS, March 5 -
    Shr profit one ct vs loss two cts
    Net profit 52,405 vs loss 67,967
    Sales 289,572 vs 188,713
    Year
    Shr loss one cts vs loss five cts
    Net loss 51,019 vs loss 201,680
    Sales 1.1 mln vs 490,935


.I 18938
.C
acq
.W
SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING.
    WASHINGTON, March 5 - Santa Fe Southern Pacific Corp will
later today formally ask the U.S. Interstate Commerce
Commission (ICC) to reconsider its earlier rejection of the
merger of the holding company's railroad assets, a company
spokesman said.
    "We expect to file papers late tonight" asking the ICC to
reopen the rail merger case, spokesman Rich Hall said in a
telephone interview from the company's Chicago headquarters.
    The ICC had rejected in July, on grounds it would reduce
competition, the merger of the Santa Fe and Southern Pacific
Railroads.
    The deadline for seeking ICC reconsideration of the merger
plan is midnight tonight.
    Santa Fe Southern Pacific owns the Santa Fe railroad and
holds the Southern Pacific railroad assets in trust while
awaiting federal approval of the merger plan.
    The ICC had ordered the holding company to divest one or
the other railroad but stayed its ruling pending a decision on
the request for reconsideration.
    If the ICC ultimately decides not to reopen the case, it is
expected to reinstate the divestiture order.


.I 18939
.C
oilseed;cocoa;coffee;sugar;soybean;trade;
.W
BRAZIL DEBT SEEN PARTNER TO HARD SELL TACTICS.
    By Brian Killen, Reuters
    CHICAGO, March 5 - Brazil's recent announcement of a
suspension in interest payments on 68 billion dlrs of foreign
debt gave the banking system the jitters and confirmed views
among many international economists and commodities analysts
that Brazil will continue to flex its trading muscles in 1987.
    The developing world's most indebted nation is also its
most prolific exporter of agricultural commodities such as
coffee and soybeans, and might maximize foreign exchange
revenue by selling hard on world markets, economists said.
    "That sounds like a reasonable strategy. But there is no
way they can trade their way out of this situation," Aldo
Roldan, Vice President for International Services at Chase
Econometrics, said.
    Roldan told Reuters that Brazil not only had to tackle the
problems of satisfying domestic demand and competing on glutted
world markets, but also had to work to make its position on
foreign exchange markets more profitable.
    "Domestic costs have increased (due to inflation) and
exporters have not had the same offsetting movement in exchange
rates," Roldan said.
    The Chase economist also said commodities markets were
depressed and generally did not appear very promising for a
country like Brazil, where pure commodities account for some 50
pct of exports and in 1986 had a total value of around 23
billion dlrs.
    But he added: "They are always pretty aggressive and they
have good foreign marketing channels."
    Analysts said a key factor in Brazilian trade will be
coffee, and even without background pressure from foreign
creditors the world's largest producer was expected to hit the
market this year with a vengeance.
    Negotiations between International Coffee Organization
(ICO) members to re-establish producer export quotas broke up
earlier this week with major producers and consumers accusing
each other of intransigence.
    "Brazil would not tolerate a change in ICO regulations,
which others wanted changed," one senior coffee dealer said.
    The dealer, who declined to be named, said Brazil wanted to
preserve its market share. At the end of the talks, he said
Brazil hinted it could sell more than anyone else and others
would suffer.
    Brazil will be an aggressive seller under any scenario but
as yet there is no sign of unusually heavy Brazilian sales, the
dealer said.
    "If they do come into the market at this level it will go
lower and you could breach a dollar, ninety or eighty cents,"
he said.
    New York coffee futures for May delivery settled 2.29 cents
lower Thursday at 104.68 cents a lb, while more distant
deliveries fell the six-cent maximum trading limit.
    President of the Brazilian Coffee Institute, Jorio Dauster
told a press conference in Rio de Janeiro today that Brazil has
no set target for its coffee exports following the breakdown of
the ICO talks on export quotas.
    Many economists and analysts believe soybeans could be the
focus of possible stepped-up Brazilian marketing efforts. "They
will be more aggressive this year than they have ever been,"
according to Richard Loewy, analyst for Prudential-Bache
Securities Inc.
    Loewy believes the foreign debt problem, a good crop, plus
difficulties with storage would help motivate selling of the
Brazil soybean crop. "Brazilian farmers also need cash flow and
they can't afford to store the crops," he said.
    The Chicago soybean complex has been nervous for some time
about large South American crops developing under near ideal
conditions towards record yields.
    "We are going to see a very rapid decline, earlier than
usual, this year in our (U.S.) exports," Loewy said.
    Tommy Eshleman, economist for the American Soybean
Association (ASA), said this year's Brazilian soybean harvest
could total 18 mln tonnes, versus 13.7 mln last year.
    Marketings will be very aggressive this summer when prices
are usually high relative to the rest of the year due to the
vulnerability of the U.S. crop to bad growing weather.
    Another incentive to sell might be trade anticipation of a
reduction in the U.S. government soybean loan rate, offered to
farmers who give crops as collateral, Eshleman said.
    He said there has been some uncertainty this year about the
soybean loan rate, which acts as an effective floor for prices
by keeping supplies away from the free market. Farmers can
forfeit their beans to the government rather than repay the
loan.
    "We're getting into a period when they (Brazil) are
starting to harvest and starting to export," Eshleman said. But
he added it will be a while before U.S. exports fall to below
10 mln bushels a week from around 20 mln bushels currently.
    Jose Melicias from the research department of Drexel
Burnham Lambert said Brazil would be trying to export as much
as it can this year because of its economic situation.
    He said the debt situation was a major consideration. "The
Brazilian government also does not have enough money to pay for
storage," he added.
    Asked if a return to an inflationary environment in Brazil
would make farmers inclined to hold onto crops, Melicias said
it would not make a big difference.
    On other commodity markets, Brazil's selling impact may be
muted no matter its need to generate capital.
    Brazil is faced with a poor 1986/87 sugar harvest, which
could limit exports to the world market, analysts said. The
country may have oversold and be unable to honor export
commitments, and this plus higher domestic demand caused by
consumer price subsidies on ethanol and refined sugar, will
give it little room to stretch exports, they said.
    Brazil's other major crop, cocoa, is in its third year of
surplus. "Cocoa consumption is basically flat and last year it
fell, so I don't think they can start throwing out cocoa and
find many more markets for it," one analyst said.
    "If they come out as aggressive sellers, the market would
collapse and they can't afford to do that," she added.


.I 18940
.C
crude
.W
IEA SAYS OPEC FEBRUARY CRUDE OUTPUT 16.1 MLN BPD.
    PARIS, March 6 - OPEC produced an average 16.1 mln barrels
per day (bpd) of crude oil in February, down from 16.5 mln the
previous month and an overall 17.3 mln bpd in fourth quarter
1986, the International Energy Agency said.
    A few OPEC countries last month exceeded the production
quotas set at their last conference in December, but liftings
were reduced from several countries, it said in its latest
monthly oil market report.
    These cutbacks were due in part to buyer resistance to
fixed prices, introduced from February 1, particularly for
fixed volumes over an extended period.
    It gave this breakdown for OPEC crude output, in mln bpd
                    FOURTH QTR 1986  JANUARY 1987  FEBRUARY
1987
    SAUDI ARABIA    4.9              3.7           3.8
    IRAN            1.6              2.2           1.9
    IRAQ            1.6              1.6           1.7
    UAE             1.3              1.2           1.2
    KUWAIT          1.0              1.0           1.0
    NEUTRAL ZONE    0.5              0.4           0.4
    QATAR           0.3              0.3           0.2
    NIGERIA         1.3              1.2           1.2
    LIBYA           1.0              1.0           1.0
                    FOURTH QTR 1986  JANUARY 1987  FEBRUARY
1987
    ALGERIA         0.6              0.6           0.6
    GABON           0.1              0.2           0.2
    VENEZUELA       1.6              1.6           1.6
    ECUADOR         0.2              0.2           0.2
    INDONESIA       1.3              1.2           1.2
    TOTAL           17.3             16.5          16.1
    The IEA said while Saudi production stayed below its quota
of 4.133 mln bpd, actual sales might exceed output due to
Norbec stock disposals. Contracts for Saudi crude have been
signed, but it is understood they have much leeway in required
liftings.
    The report said the reduction in Iraqi air attacks on
Iranian export facilities allowed Iran's output to reach 2.2
mln bpd in January, but buyer resistance to fixed prices
apparently cut February production.
    It said Iraqi exports are about 1.0 mln bpd through the
Turkish pipeline, 0.1-0.2 mln by truck through Jordan and
0.2-0.3 mln via the Saudi pipeline to Yanbu. Internal
consumption is some 0.3 mln bpd.
    The IEA estimated total non-communist world oil supply in
February at 45.0 mln bpd, down from 45.4 mln in January and
47.0 mln in the fourth quarter.
    The February world supply figure is made up of 16.1 mln bpd
OPEC crude production, 1.4 mln bpd OPEC natural gas liquids
(ngls), 16.6 mln bpd OECD crude and ngls, 8.3 mln bpd other
developing countries' crude and ngls, net trade of 1.1 mln bpd
with centrally planned economies, 0.5 mln bpd of
non-conventional crudes (such as tar sands and oil from coal)
and 1.0 mln bpd from processiing gains.
    Within the OECD, preliminary Norwegian data show record
1.06 mln bpd output in January, with lower production expected
in February in accordance with government curtailments of
approximately 80,000 bpd, announced in support of OPEC.


.I 18942
.C
wheat;grain;
.W
U.S. SENATE GROUP URGES SUBSIDIES FOR USSR.
    WASHINGTON, March 5 - A majority of the Senate Agriculture
Committee urged President Reagan to reverse his opposition to
export subsidies to the Soviet Union as a way to get its
negotiators to purchase some 500 mln dlrs in American wheat.
    The group, led by committee chairman Patrick Leahy, a
Vermont Democrat, urged Reagan to step up negotiations with the
Soviet Union by providing export subsidies to help U.S.
farmers.


.I 18944
.C
acq
.W
ENFIELD CORP PLANS NOTES, PREFERRED ISSUE.
    TORONTO, March 5 - <Enfield Corp Ltd> said it planned to
issue 60 mln dlrs principal amount of notes and 1.6 mln class E
preferred shares at 25 dlrs a share.
    The notes would bear 8 pct yearly interest, mature March
31, 2002 and be convertible to common shares on either March
31, 1997 or the business day before a fixed redemption date at
13.50 dlrs a share, Enfield said.
    It said each preferred share would be convertible to 1.85
common shares on either March 31, 1997 or the business day
before a fixed redemption date. Gordon Capital Corp and
Dominion Securities Inc agreed to acquire the issues, it said.
    Enfield said it would use proceeds to retire short-term
bank debt and boost its 22 pct stake in <Consumers Packaging
Inc> and its interest in <Federal Pioneer Ltd> through open
market purchases.


.I 18946
.C
acq
.W
WICHITA <WRO> TO BUY FOUNTAIN OIL <FGAS>.
    DENVER, Colo., March 5 - Wichita Industries Inc said it
agreed to buy Fountain Oil and Gas Inc.
    Wichita said it it will acquire all of the outstanding
shares of Fountain in an exchange for about 11 mln newly issued
Wichita common shares. Wichita presently has about 3.6 mln
shares outstanding.
    The transaction calls for the issuance of 1-1/2 shares of
Wichita common for each outstanding Fountain share.
    Wichita also said it made a number of refinancing
agreements in connection with the acquisition.


.I 18947
.C
cpi
.W
ARGENTINE INFLATION ROSE 6.5 PCT IN FEBRUARY.
    BUENOS AIRES, March 5 - Argentina's cost of living index
grew 6.5 pct in January, down from last month's 7.6 pct, the
National Statistics Institute said.
    It said consumer prices rose 98.9 pct over the last 12
months, against 81.9 pct inflation in the calendar year 1986.


.I 18948
.C
crude
.W
PEMEX LOWERS FEBRUARY FAR EAST CRUDE OIL PRICES.
    MEXICO CITY, March 5 - The Mexican state oil company
Petroleos Mexicanos (PEMEX) said its Far East customers would
be charged 17.25 dlrs per barrel for Isthmus crude in February
and 14.45 dlrs for the heavier Maya.
    Pemex said this was 32 cts less than January Isthmus and 15
cts less than January Maya.
    Far East customers, primarily Japan which buys an average
180,000 barrels per day of which 150,000 is Isthmus, pay
retroactively while European and U.S. clients are charged per
delivery.


.I 18949
.C
retail
.W
N.Z. DECEMBER QUARTER RETAIL SALES FALL 13.2 PCT.
    WELLINGTON, March 6 - Retail sales in the quarter ended
December 31 fell a seasonally adjusted 13.2 pct compared with a
7.8 pct rise in the September quarter and a 1.3 pct fall a year
ago period, the Statistics Department said.
    Actual retail sales in the December quarter totalled 6.17
billion N.Z. Dlrs compared with 6.70 billion in the previous
quarter and 6.10 billion a year ago period.
    The largest decreases in the December quarter were recorded
by the same stores which recorded the highest increase in sales
in the September 1986 quarter before the introduction of a 10
pct value added goods and services tax on October 1, 1986.


.I 18950
.C
acq
.W
REPH ACQUISITION TO NEGOTIATE PESCH MERGER BID.
    DALLAS, March 5 - REPH Acquisition Co said its board
appointed a special committee to negotiate the terms of an
offer made earlier today by <Pesch and Co> to merge with its
Republic Health Corp <REPH> unit.
    Pesch, through its Alpha Health Systems Corp unit, offered
to acquire the 36 pct of Republic Health stock that it does not
already own.
    Terms of Pesch's offer have not been disclosed.
   


.I 18952
.C
acq
.W
HUNT GROUP HAS COMDATA STAKE, SEEKS INFLUENCE.
    WASHINGTON, March 5 - An investor group led by members of
the Hunt family of Dallas, Texas, told the Securities and
Exchange Commission it has acquired a 6.2 pct stake in Comdata
Network Inc <CDN> and may try to influence company policy.
    The investor group, led by Rosewood Financial Inc, said it
opposes a company recapitalization plan worked out between
Comdata and Mason Best Co, a Texas investment firm, which last
reported holding about 9.5 pct of the company's stock.
    The Hunt group said it offered on March 3 to buy the entire
5.3 pct stake held by dissident shareholder Donald Carter at 14
dlrs each, but has received no reply as of yesterday.
    Rosewood, which is owned by the Caroline Hunt Trust Estate,
whose trustees include Margaret Hunt Hill, also said it has
notified the Federal Trade Commission of its intent to buy
between 15 and 25 pct of Comdata's common stock.
    Under federal law, it cannot buy more than 15 pct of
Comdata's stock until a 15 to 30 day waiting period is over,
unless the FTC gives it early approval.
    Under the proposed Comdata recapitalization plan, the
company would buy up to 10 mln of its common shares at 13.25
dlrs each.
    Mason Best, which belongs to CNI Parnters, a Texas
partnership, would not tender any of its stake under the plan,
but would instead buy another one mln Comdata common shares and
would get representation on the company's board.
    The Hunt group said it has told Comdata that it considers
required payments under the plan, such as a 1.5 mln dlr fee and
the issuance of a warrant to buy 500,000 common shares to be a
waste of the company's assets.
    The Hunt group, which also includes securities Texas firms
Cypress Partners L.P and Driftwood Ltd, said it spent 15.2 mln
dlrs on its 1,197,700 Comdata common shares.


.I 18953
.C
wheat;grain;trade;
.W
ARGENTINA-BRAZIL TRADE JUMPED 90 PCT IN 1986.
    BUENOS AIRES, March 5 - Trade between Argentina and Brazil
jumped 90 pct in 1986 versus 1985, Foreign Minister Dante
Caputo said.
    Speaking to reporters, Caputo said the near doubling in
trade showed the "tangible and immediate results" of a wide-
ranging economic integration accord signed by the presidents of
both countries last July.
    He said trade last year totalled 1.3 billion dlrs versus
700 mln dlrs in 1985.
    The accord provided for capital goods trade between the two
countries to rise to 2.0 billion dlrs over four years.
    Argentine wheat exports to Brazil will increase from
1,375,000 tonnes in 1987 to 2.0 mln tonnes in 1991, the accord
said.


.I 18956
.C
acq
.W
SANTA FE SOUTHERN PACIFIC APPEALS MERGER RULING.
    WASHINGTON, March 5 - Santa Fe Southern Pacific Corp will
later today formally ask the U.S. Interstate Commerce
Commission (ICC) to reconsider its earlier rejection of the
merger of the holding company's railroad assets, a company
spokesman said.
    "We expect to file papers late tonight" asking the ICC to
reopen the rail merger case, spokesman Rich Hall said in a
telephone interview from the company's Chicago headquarters.
    The ICC had rejected in July, on grounds it would reduce
competition, the merger of the Santa Fe and Southern Pacific
Railroads.
    The deadline for seeking ICC reconsideration of the merger
plan is midnight tonight.


.I 18957
.C
earn
.W
E.A. VINER HOLDINGS LTD <EAVKF> 4TH QTR LOSS.
    TORONTO, March 5 -
    Shr loss 10 cts vs profit seven cts
    Net loss 918,000 vs profit 585,000
    Revs 5,475,000 vs 4,430,000
    YEAR
    Shr profit 32 cts vs loss 24 cts
    Net profit 2,909,000 vs loss 1,501,000
    Revs 23.7 mln vs 15.0 mln
    Note: 1986 4th qtr net includes 1.5 mln U.S. dlr, or 17 ct
shr, writedown of stake in Heck's Inc <HEX> and 300,000 U.S.
dlr, or three ct shr, writedown of arbitrage positions. 1986
fl-yr net includes 900,000 dlr net writedown of stake in
Heck's.
    U.S. dlrs.


.I 18958
.C
acq
.W
CARPET FIRM UNIT CUTS ALLIED PRODUCTS<ADP> STAKE.
    WASHINGTON, March 5 - A group led by GFI Nevada Inc, a
subsidiary of General Felt Industries, a Saddlebrook, N.J.
carpet maker, said it cut its stake in Allied Products Corp to
169,888 shares, or 3.4 pct, from 288,652 shares, or 5.8 pct.
    In a filing with the Securities and Exchange Commission,
GFI said it sold 114,000 Allied Products common shares on March
3 at 42 dlrs each and donated another 4,746 shares to two
universities.
    It said its dealings in the company's common stock were for
investment purposes only.



.I 18960
.C
ship
.W
TALKS FAIL TO END BRAZILIAN SEAMEN'S STRIKE.
    SAO PAULO, Brazil, March 5 - Pay talks aimed at ending a
week-old national seamen's strike collapsed today and the
strike will continue, a union official said.
    The walkout by Brazil's 40,000 seamen has idled 160 ships
in various ports, Jorge Luis Leao Franco, a senior official of
the National Merchant Marine Union, told Reuters.
    The strikers, who are seeking a 275 pct pay increase, have
rejected offers of a 100 pct raise from the state oil company
Petrobras and an 80 pct increase from the National Union of
Maritime Navigation Companies (Syndarma).
    Leao Franco said eight hours of talks in Rio de Janeiro
with Labor Minister Almir Pazzianotto ended today without
resolving the dispute.
    He said six ships were idle abroad -- in the Netherlands,
Spain, Venezuela, France and South Africa.
    Economic analysts said the strike was of major concern to
the government, which has suspended interest payments on part
of Brazil's foreign debt following a drastic deterioration in
the country's trade balance.
    The head of the National Merchant Marine Authority, Murilo
Rubens Habbema, was quoted today as saying that if the strike
continued foreign ships could be authorized to transport
Brazilian exports.
    "Brazil is living through a crisis at the moment and it is
not conceivable that exports be hit," he told the Gazeta
Mercantil newspaper.


.I 18961
.C
acq
.W
SHEARSON HAS 5.4 PCT OF CHICAGO MILWAUKEE <CHG>.
    WASHINGTON, March 5 - Shearson Lehman Brothers Inc, the
brokerage subsidiary of American Express Co <AXP>, said it has
acquired 131,300 shares of Chicago Milwaukee Corp, or 5.4 pct
of its total outstanding common stock.
    In a filing with the Securities and Exchange Commission,
Shearson said it bought the stake for 18.8 mln dlrs for
investment purposes and has no intention of seeking control of
the company.


.I 18962
.C
earn
.W
VINER <EAVKF> VIABLE AFTER HECK'S <HEX> MOVE.
    TORONTO, March 5 - E.A. Viner Holdings Ltd said the earlier
reported Chapter 11 bankruptcy filing of Heck's Inc <HEX>, in
which Viner holds 408,000 shares, would not materially affect
Viner's capital position or its ability to carry on its
profitable brokerage business.
    Viner said its brokerage subsidiary, Edward A. Viner and Co
had regulatory capital of 24.5 mln U.S. dlrs at year-end 1986.
    The company said Heck's Chapter 11 filing could, however,
affect Viner's previously reported legal action to recover
costs from an aborted merger agreement with Heck's.
     It said it and the Toussie-Viner group, with which it made
the merger offer, were assessing their options regarding the
Heck's investment.
    Viner earlier reported a fourth quarter loss of 918,000
U.S. dlrs after a 1.5 mln dlr writedown of its stake in Heck's.
It earned 585,000 dlrs in the previous fourth quarter.
    Full-year earnings totaled 2.9 mln dlrs against a
year-earlier loss of 1.5 mln dlrs. The full-year earnings
included a 900,000 dlr net writedown of the Heck's stake, it
said.


.I 18964
.C
acq
.W
TWA <TWA> SUES USAIR <U> OVER POISON PILL.
    NEW YORK, March 5 - Trans World Airlines Inc said it filed
suit in Delaware Chancery Court against USAir Group Inc and its
board of directors seeking to invalidate its "poison pill"
anti-takeover plan.
    TWA vice president and general counsel Mark Buckstein said
TWA also sought a declaratory judgement from the court that its
52 dlr per share takeover offer for USAir would in no way
interfer with USAir's possible buyout of Peidmont Aviation Inc
<PIE>.
    Buckstein said TWA asked the court to enjoin the
enforcement of USAir's shareholder rights plan, or "poison
pill." Such provisions, which typically allow for the issue of
securities to shareholders in the event of a hostile takeover
bid, are aimed at deterring takeovers by making them more
expensive.
    USAir earlier today rejected TWA's offer, saying TWA's bid
was an attempt to interfer with its buyout of Piedmont.
    USAir also had said its counsel would investigate the
matter. Tonight, a spokesman for USAir said the airline had no
comment on TWA's lawsuit.
    USAir did respond, however, to a TWA request to the
Department of Transportation for permission to buy up to 51 pct
of USAir stock and place the stock in a voting trust pending
approval of a takeover.
    USAir said the request was "hastily pasted together in
order to take advantage of a regulatory anamoly that would
allow TWA to accomplish in a regulated environment actions that
would be impermissable in the non-regulated economy at large."
    USAir called on the transportation department to reject
TWA's request.


.I 18966
.C
earn
.W
<FOUR SEASONS HOTELS INC> YEAR NET.
    TORONTO, March 5 -
    Oper shr 99 cts vs 54 cts
    Oper net 9,515,000 vs 3,449,000
    Revs 509.3 mln vs 440.5 mln
    Note: 1985 net excludes extraordinary gain of 1.2 mln dlrs.


.I 18967
.C
earn
.W
<IVEY PROPERTIES INC> RAISES QUARTERLY DIVIDEND.
    CHARLOTTE, N.C., March 5 - Ivey Properties Inc said it
raised its quarterly dividend to 18 cts a share from 14 cts and
declared both an extra dividend of 27 cts a share and a 50 pct
stock dividend.
    It said the dividends will be paid April one to
shareholders of record March  16.
    For the stock dividend, Ivey said it will pay for
fractional shares at 25 dlrs per share.
   


.I 18968
.C
coffee
.W
MEXICO SUSPENDS OVERSEAS COFFEE SALES.
    MEXICO CITY, March 5 - Mexico has temporarily suspended
overseas coffee sales due to falling prices triggered by the
failure of the International Coffee Organisation (ICO) meeting
to agree a quota system at its latest meeting, the official
Notimex news agency said.
    "We're just waiting a while for prices to improve," an
unidentified Mexican trader told the agency.
    Mexico has already sold 80 pct of its export coffee
produced in the year to last September, the source said. The
country exports about 3.3 mln 60-kilo bags a year.


.I 18969
.C
acq
.W
GROUP BOOSTS SCANDINAVIA FUND <SCF> STAKE.
    WASHINGTON, March 5 - A shareholder group led by a Swedish
investment firm and a Norwegian investor said it raised its
stake in the Scandinavia Fund Inc to 2,165,300 shares, or 33.3
pct of the total, from 1,978,900 shares, or 30.5 pct.
    In a filing with the Securities and Exchange Commission,
the group, which includes Ingemar Rydin Industritillbehor AB,
the firm, and investor Erik Martin Vik, said it bought the
additional shares between Feb 24 and March 9.


.I 18970
.C
acq
.W
OFFSHORE INVESTMENT FIRM UPS FRANCE FUND STAKE.
    WASHINGTON, March 5 - VBI Corp, an offshore-based
investment firm, told the Securities and Exchange Commission it
raised its stake in the France Fund Inc <FRN> to 681,800
shares, or 9.1 pct of the total, from 551,000, or 7.4 pct.
    VBI, which is based in Turks and Caicos Islands, the
British West Indies, said it bought the additional shares
between Feb 24 and March 4.
    It has said it bought its France Fund stake for investment
purposes only.


.I 18971
.C
coffee
.W
COSTA RICA OPTIMISTIC ABOUT REFORMING ICO.
    SAN JOSE, March 5 - Costa Rica's economy minister said he
sees new hope for winning changes in the International Coffee
Organisation system of export quotas.
    Minister Luis Diego Escalante, who serves as president of
the Costa Rican Coffee Institute, said he was hopeful because
of the support offered Costa Rica and other smaller producing-
nations by such major consumers as the United States, Britain
and the Netherlands at last week's ICO meeting in london.
    Escalante told a news conference here he "carried the weight
of the negotiations" at the meeting by calling for larger export
quotas for the smaller coffee-growing nations.
    Costa rica is insisting, Escalante said, on a new quota
system based on a producing nation's real export capacity, once
it has satisfied internal demand.
    "There are countries such as our own whose sales
possibilities are close to or above 100 pct of their current
quotas," Escalante said.
    At the same time, there are countries favoured by the
current system that have been assigned quotas far above their
export potential, he said.
    The current ICO quota system is "unfair and autocratic,"
Escalante said.
    Escalante attributed the nosedive in international coffee
prices over the last week to speculation rather than real
matters of supply and demand.
    "Be careful," he warned, "there's not as much coffee in the
world as they say. What there is are bags of sawdust."


.I 18972
.C
money-supply
.W
U.S. MONEY GROWTH SLOWS SHARPLY, ECONOMISTS SAY.
    By Alan Wheatley, Reuters
    NEW YORK, March 5 - U.S. money supply growth is slowing
down rapidly, and some economists believe that all three of the
Federal Reserve's main monetary aggregates may even have
contracted in February.
    A contraction is unlikely to be a major concern for the
Fed, especially as it would follow a long period of torrid
growth, but it could give the central bank extra leeway in the
weeks ahead if it decided that a relaxation of monetary policy
was justified on account of weakness in the economy.    
    M-1 money supply for the week ended February 23, reported
today, rose 1.9 billion dlrs to 738.5 billion, but preliminary
forecasts call for a drop next week of around two billion dlrs.
The monthly average in January was 737.1 billion dlrs.
    M-1 makes up about a quarter of M-2 and a fifth of M-3.
With other components of M-2, such as money-market deposit
accounts and small time deposits, also falling, the stage is
set for falls in the broader aggregates too, economists say.
    M-1 has been largely discredited because its traditional
link to economic growth has disintegrated under the impact of
falling interest rates and banking deregulation.
    But the consistent behavior of all three aggregates is
likely to impress the Fed, said Ward McCarthy of Merrill Lynch
Economics Inc.
    "The Fed has confidence in the aggregates when they're all
sending the same signal. This is going to raise some eyebrows
at the Fed," McCarthy said.
    Stephen Slifer of Shearson Lehman Brothers Inc added, "We
have some very good-looking monetary aggregate data. It's
coming in a lot weaker than I thought."    
    The economists were quick to caution that one month's data
prove nothing, especially because money growth previously had
been so rapid. M-1 in the last 52 weeks has grown at a 16.7 pct
rate and at a 19.1 pct rate in the past 13 weeks.
    Moreover, some of the contraction in M-2 can probably be
explained by a shift of funds from savings vehicles into the
booming stock market and is thus not an indication of a
slowdown in the business expansion.
    But the data raise the tantalizing possibility for the bond
markets that the slowdown in money growth is partly a
reflection of a weaker economy that needs more Fed stimulus.
    McCarthy noted that the slower money growth coincides with
signs that the economy is losing momentum as the quarter
progresses. "Some of the economic indicators are not as rosy as
they were a month ago," he noted.
    He expects only five to six pct M-1 growth in March and
rises in M-2 and M-3 of about four pct.
    Slifer sees stronger growth of 10 pct in M-1 and five pct
or less for M-2 and M-3, but the rates would still be moderate
enough to encourage the Fed to ease policy if gross national
product for the first quarter proved to be weak. "You'd
certainly be more inclined to ease than you would in the past."
    There was certainly nothing in the Fed's latest balance
sheet, however, to suggest a change of policy is already under
way, economists said. Discount window borrowings were in line
with expectations at 233 mln dlrs a day.
    Robert Brusca of Nikko Securities Co International Inc
argued that an easier Fed policy is unlikely to do much to
solve America's most urgent economic problem, its massive trade
deficit. Because of the possibility that further dollar
depreciation - and thus rising inflation - may be needed to
close the trade gap, Brusca said "I'm not prepared to be all
that optimistic about the bond market."


.I 18973
.C
cpi
.W
ECUADOR'S CONSUMER PRICES RISE 2.5 PCT IN FEBRUARY.
    QUITO, March 5 - Ecuador's consumer price index rose 2.5
pct in February to 562.4 (base 1978), the National Statistics
and Census Institute said.
    The rise compared to a 1.8 pct rise in January and a 2.5
pct rise in February 1986.
    The Institute said accumulated overall inflation for the
first two months of this year was 4.0 pct compared to 5.0 pct
for the same period last year.
    Inflation for the 12 months ending February 1987 was 25.5
pct compared to 13.0 pct for the 12 months ending February
1986.


.I 18975
.C
meal-feed;fishmeal;
.W
WEST GERMAN FISHMEAL IMPORTS HIGHEST IN 15 YEARS.
    HAMBURG, March 6 - West German gross fishmeal imports rose
60,260 tonnes, or 14.6 pct, last year to 471,891 tonnes, the
highest level since 1972, trade sources said.
    Re-exports fell by 6.6 pct, resulting in a surge in net
imports from 175,901 to 251,708 tonnes, an increase of 43 pct.
    Total West German consumption was estimated at around a
high 287,000 tonnes, largely reflecting attractive prices. The
sources, however, could not give comparative figures for 1985.
    South American producer countries supplied 97 pct of West
German requirements, with Chile shipping 229,176 tonnes (1985 -
182,959) and Peru 210,513 (147,014) tonnes.
    The two South American countries' share of the West German
market rose to 93.2 pct from 80.2 pct because imports from
Ecuador fell to 21,110 tonnes in 1986 from 51,722 in 1985.
    West Germany imported 56,823 tonnes of fishmeal in
December, up from 46,236 tonnes in the same 1985 month, with
re-exports at 22,262 tonnes after 25,062 a year earlier.


.I 18976
.C
earn
.W
TPA OF AMERICA INC <TPS> 4TH QTR LOSS.
    LOS ANGELES, March 6 -
    Shr loss five cts
    Net loss 753,000
    Revs 8,932,000
    Avg shrs 16.0 mln
    Year
    Shr loss seven cts
    Net loss 995,000
    Revs 27.9 mln
    Avg shrs 14.8 mln
    NOTE: Company started operating in August 1985.
    Results reflect change in fiscal year from November 30 end.


.I 18977
.C
gold
.W
SILVER STATE MINING <SSMC> SEES PRODUCTION RISE.
    DENVER, March 6 - Silver State Mining Corp said it expects
gold production this year to be more than double 1986's 17,458
ounces.
    The company's 1985 production was 2,050 ounces.


.I 18978
.C
earn
.W
MCGRATH RENTCORP <MGRC> SEES NET RISING.
    SAN LEANDRO, Calif., March 6 - McGrath RentCorp said as a
result of its December acquisition of Space Co, it expects
earnings per share in 1987 of 1.15 to 1.30 dlrs per share, up
from 70 cts in 1986.
    The company said pretax net should rise to nine to 10 mln
dlrs from six mln dlrs in 1986 and rental operation revenues to
19 to 22 mln dlrs from 12.5 mln dlrs.
    It said cash flow per share this year should be 2.50 to
three dlrs.


.I 18979
.C
earn
.W
SILVER STATE MINING CORP <SSMC> 4TH QTR NET.
    DENVER, March 6 -
    Shr one ct vs one ct
    Net 528,790 vs 286,969
    Revs 2,537,803 vs 773,729
    Year
    Shr seven cts vs one ct
    Net 2,429,576 vs 404,394
    Revs 6,726,327 vs 1,150,961


.I 18980
.C
earn
.W
SIZZLER RESTAURANTS INTERNATIONAL INC <SIZZ> NET.
    LOS ANGELES, March 6 -
    Shr 15 cts vs 14 cts
    Net 2,547,000 vs 2,242,000
    Revs 56.7 mln vs 44.0 mln
    Avg shrs 17.6 mln vs 15.6 mln
    Nine mths
    Shr 54 cts vs 54 cts
    Net 9,249,000 vs 8,334,000
    Revs 173.3 mln vs 134.3 mln
    Avg shrs 17.1 mln vs 15.5 mln


.I 18982
.C
acq
.W
******MCANDREWS AND FORBES ARE OFFERING 18.50 DLRS PER SHARE FOR REVLON STOCK.
Blah blah blah.

.I 18983
.C
money-fx
.W
U.K. MONEY MARKET DEFICIT REVISED TO 550 MLN STG.
    LONDON, March 6 - The Bank of England said it had revised
its estimate of the shortage in the money market back to its
initial forecast of 550 mln stg.
    At midsession the central bank changed the shortfall to 500
mln and provided assistance worth 96 mln stg through bank bill
purchases in bands one and two at established dealing rates.


.I 18984
.C
earn
.W
DONEGAL GROUP INC <DGIC> YEAR NET.
    MARIETTA, Pa., March 6 -
    Shr six cts
    Net 155,764
    Revs 6,506,792
    NOTE: Company formed in August 1986.


.I 18985
.C
earn
.W
PETER MILLER APPAREL GROUP 3RD QTR JAN 31 LOSS.
    TORONTO, March 6 -
    Shr loss 28 cts vs profit seven cts
    Net loss 931,000 vs profit 7,000
    Revs 2.3 mln vs 2.0 mln
    Nine mths
    Shr loss 55 cts vs profit seven cts
    Net loss 1,619,000 vs profit 185,000
    Revs 7.7 mln vs 7.1 mln
    NOTE: Shr figures adjusted for issue of 600,000 shares in
October, 1986. Avg shrs not given.
    Full name is <Peter Miller Apparel Group Inc>.


.I 18986
.C
earn
.W
KRELITZ INDUSTRIES INC <KRLZ> 3RD QTR NET.
    MINNEAPOLIS, March 6 - Period ended Jan 31
    Shr seven cts vs 14 cts
    Net 136,000 vs 274,000
    Sales 48.4 mln vs 38.2 mln
    Nine mths
    
    Shr 30 cts vs 17 cts
    Net 573,000 vs 328,000
    Sales 140.0 mln vs 102.4 mln
    NOTE: Prior year period ended Sept 30
    Comparable periods reflect change in fiscal yearend to
April from December


.I 18987
.C
earn
.W
DONEGAL <DGIC> PROJECTS FULL YEAR RESULTS.
    MARIETTA, Pa., March 6 - Donegal Group Inc, which today
reported earnings of 155,764 dlrs on revenues of 6,506,792 dlrs
for the period from August 26 startup through the end of 1986,
said it expects "much improved" profits for the full year 1987
on revenues of about 32 mln dlrs.


.I 18988
.C
acq
.W
MACANDREWS AND FORBES HOLDINGS BIDS FOR REVLON.
    NEW YORK, March 6 - McAndrews and Forbes Holdings Inc said
it will offer 18.50 dlrs per share for all of Revlon Group
Inc's <REV> outstanding common stock.
    McAndrews said terms of the acquisition have not been
determined and are subject to the acquisition of financing.
    Revlon closed yesterday on the New York Stock Exchange at
14-3/4.
    The company said it would bid for all stock it or its
affiliates do not already own.
    McAndrews and Forbes said it informed the board of
directors of Revlon that it expects to make a formal proposal
in the near future. It also said there can be no assurance as
to the terms of the proposals or that the deal can be
concluded.


.I 18990
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 6 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 300,000 to 305,000 head versus
292,000 week ago and 316,000 a year ago.
    Saturday's hog slaughter is guesstimated at about 30,000 to
55,000 head.
    Cattle slaughter is guesstimated at about 128,000 to
130,000 head versus 129,000 week ago and 119,000 a year ago.
    Saturday's cattle slaughter is guesstimated at about 20,000
to 40,000 head.


.I 18992
.C
acq
.W
BOREALIS IN GOLD EXPLORATION PACT WITH FARAWAY.
    CALGARY, Alberta, March 6 - <Borealis Exploration Ltd> said
it entered into an agreement with <Faraway Gold Mines Ltd> of
Vancouver, British Columbia, under which Faraway will acquire
an interest in Borealis's Whale Cove Gold Property in the
Keewatin district of the Northwest Territories.
    Faraway will spend 1.5 mln dlrs on exploration over three
years and will hold 50 pct of the property until all expenses
are paid out, when the interest will drop to 40 pct.
    Also, Borealis and Faraway will issue treasury shares to
each other and Faraway will buy 575,000 Borealis shares from
Borealis president Lorne Spence.


.I 18994
.C
money-fx;interest;
.W
U.K. MONEY MARKET GETS 350 MLN STG AFTERNOON HELP.
    LONDON, March 6 - The Bank of England said it provided
assistance worth 350 mln stg during the afternoon session which
takes total help so far today to 446 mln stg against a shortage
estimated at around 550 mln stg.
    The central bank purchased outright bank bills comprising
120 mln stg in band one at 10-7/8 pct and 227 mln stg in band
two at 10-13/16 pct. It also bought treasury bills worth one
mln stg in band one and two mln stg in band two at the same
rates of interest as bank bills.


.I 18995
.C
acq
.W
IMRE <IMRE> SELLS STOCK TO EUROPEAN INSTITUTIONS.
    SEATTLE, March 6 - IMRE Corp said it has received
commitments for a group of European institutions to buy about
400,000 IMRE shares for 2,500,000 dlrs, with closing expected
on March 16.
                                                   


.I 18996
.C
acq
.W
INSTRUMENTARIUM ACQUIRES NOKIA SUBSIDIARY.
    HELSINKI, March 6 - Finland's medical group Instrumentarium
Oy <INMR.HE> said it has acquired electronics components
importers and marketers <Ferrado Oy> and <Insele Oy>,
subsidiaries of Finland's electronics group Nokia Oy <NOKS.HE>.
    It said in a statement Ferrado and Insele will be merged
into Instrumentarium's Professional Electronics and Information
Systems Division.
    It did not disclose a price for the acquisitions but said
it had issued 30,000 restricted B shares as partial payment to
Nokia.


.I 18997
.C
earn
.W
FUQUA INDUSTRIES INC <FQA> SETS QUARTERLY.
    ATLANTA, March 6 -
    Qtly div six cts vs six cts prior
    Pay April One
    Record March 20


.I 18998
.C
earn
.W
<M-CORP INC> YEAR DEC 28 NET.
    MONTREAL, March 6 -
    Shr 73 cts vs 55 cts
    Net 1,691,878 vs 1,117,747
    Revs 7.1 mln vs 4.9 mln
    Avg shrs 2.3 mln vs 2.0 mln
    NOTE: Share results reflect two-for-one stock split in
June, 1986.


.I 19000
.C
acq
.W
******DOME PETROLEUM REAFFIRMS DOME MINES STAKE FOR SALE AT RIGHT PRICE, SPOKESMAN SAYS.
Blah blah blah.

.I 19001
.C
acq
.W
COMMONWEALTH MORTGAGE <CCMC> BUYS ARMONK FIRM.
    WELLESLEY, Mass., March 6 - Commonwealth Mortgage Co said
it purchased Westfiar Funding Corp of Armonk, N.Y., for an
undisclosed amount of cash.
    Commonwealth said Westfair originated 60 mln dlrs of
residential mortgage loans during 1986.


.I 19002
.C
earn
.W
<M-CORP INC> RAISES DIVIDEND.
    MONTREAL, March 6 -
    Semi-annual div 7-1/2 cts vs five cts
    Pay April nine
    Record March 26


.I 19003
.C
crude
.W
PERMIAN <PBT> RAISES CRUDE PRICES.
    NEW YORK, MAR 6 - Permian Corp said that effective march 5
it raised its posted prices for crude oil 50 cts a barrel.
    The raise brought its posted prices for West texas
Intermediate up by 50 cts to 17.00 dlrs a barrel.
    West Texas Sour was also raised by 50 cts to 17.00 dlrs a
barrel.
    A Permian spokesman said that the South Louisiana sweet
posted prices was also raised 50 cts a barrel to 17.35 dlrs.


.I 19005
.C
earn
.W
******AMERICAN STORES CO 4TH QTR SHR 1.57 DLRS VS 1.60 DLRS.
Blah blah blah.

.I 19008
.C
earn
.W
CENTRAL SPRINKLER CORP <CNSP> 1ST QTR JAN 31 NET.
    LANSDALE, Pa., March 6 -
    Shr 19 cts vs 20 cts
    Shr diluted 18 cts vs 18 cts
    Net 578,000 vs 554,000
    Sales 10.7 mln vs 10.4 mln
    Avg shrs 3,006,s302 vs 2,795,820
    Avg shrs diluted 4,271,488 vs 4,081,534


.I 19009
.C
earn
.W
<FAR WEST INDUSTRIES INC> RAISES DIVIDEND.
    VERNON, British Columbia, March 6 -
    Annual div four cts vs 1.76 cts
    Pay March 20
    Record March 15


.I 19011
.C
earn
.W
<FAR WEST INDUSTRIES INC> YEAR NET.
    VERNON, British Columbia, March 6 -
    Shr 23 cts vs 17 cts
    Net 761,000 vs 490,000
    Revs 7.3 mln vs 4.5 mln



.I 19012
.C
livestock
.W
U.K. OFFICIALS STUDY SALMONELLA/CALF FEED LINK.
    LONDON, March 6 - U.K. Officials are studying the possible
link between the use of antibiotics in calf feeds and the
spread of drug-resistant strains of salmonella in humans, a
Ministry of Agriculture official said.
    A study published in the New England Journal of Medicine
yesterday stated that the spread of an unusual strain of
salmonella that is resistant to the drug chloramphenicol had
been shown to be linked to farms that used the drug to promote
the growth of cattle.
   The U.K. Ministry of Agriculture is working with the
Department of Health and the Public Health Laboratory to
investigate the whole subject of resistant strains of
salmonella.
    "The Ministry of Agriculture is concerned about the possible
effects on human and animal health," the official said. The
government is also studying a recommendation from the Farm
Animal Welfare Council (FAWC) to restrict the trade of calves
under 56 days old through markets. The FAWC says this would
help reduce the spread of salmonella.


.I 19013
.C
grain;corn;
.W
******CANADA RULES U.S. CORN INJURING CANADIAN FARMERS, UPHOLDS DUTY .
Blah blah blah.

.I 19014
.C
acq
.W
DOME<DMP> REPEATS DOME MINES<DM> STAKE FOR SALE.
    TORONTO, March 6 - Dome Petroleum Ltd's 23.2 pct stake of
gold producer Dome Mines Ltd continues to be for sale "at the
right price," spokesman David Annesley said in response to an
inquiry.
    Reaffirming remarks made last year by chairman Howard
Macdonald, Annesley said the company is considering selling its
stake in Dome Mines.
    Concerning Dome Petroleum's 42 pct stake in <Encor Energy
Corp Ltd>, Annesley said "Encor is a strategic investment for
Dome, and we have no intention of selling it."
    Dome spokesman Annesley said in answer to a question that
he was not aware of any negotiations now under way toward the
sale of Dome Petroleum's 20.9 mln Dome Mines shares.
    He also declined to specify at what price the company would
consider selling it shares.
    "Clearly today's prices of more than 15 dlrs a share (of
Dome Mines stock) are very attractive," Annesley commented.
    "We were considering the sale 'at the right price' at a time
when the shares were priced around nine to 10 dlrs," he added. A
price of around 15 dlrs a share would be considered "fairly
attractive," Annesley said.
    Annesley also Dome Petroleum may be able to sell its Dome
Mines' shares at a premium to market prices. "There might be an
opportunity to pick up a premium on that because it would be
virtually a control block in Dome Mines," he said.
    Dome Mines shares traded earlier at 15-1/4 dlrs, off 1/4 on
the Toronto Stock Exchange.
    Dome Petroleum is now negotiating a plan to restructure
debt of more than 6.1 billion Canadian dlrs with a group of 56
major creditors, which includes Dome Mines and Encor Energy.
    The company previously said it expects to detail the plan
to lenders early next week.


.I 19016
.C
grain;corn;
.W
******CANADA RULES U.S. CORN INJURING CANADIAN  FARMERS, UPHOLDS DUTY.
Blah blah blah.

.I 19018
.C
money-fx;interest;
.W
NEW DUTCH SPECIAL ADVANCES ANNOUNCED AT 5.3 PCT.
    AMSTERDAM, March 6 - The Dutch central bank announced new
eleven-day special advances at an unchanged 5.3 pct to aid
money market liquidity, covering the period March 9 to 20.
    The amount will be set at tender on Monday March 9 between
0800 and 0830 GMT. The new facility will replace the current
4.8 billion guilders of seven-day advances expiring Monday.
    Money dealers estimated today's money market shortage at 11
to 11.25 billion guilders, barely changed from yesterday.
    They said call money was still relatively high at 6-1/8 to
6-1/4 pct as a result of the tight set of bids accepted by the
Bank for the previous seven-day facility.


.I 19019
.C
earn
.W
SELECTERM INC <SLTM> 4TH QTR LOSS.
    DANVERS, Mass., March 6 -
    Shr loss not given vs profit 16 cts
    Net loss 309,000 vs profit 426,000
    Revs 6,358,000 vs 6,747,000
    Year
    Shr profit 27 cts vs profit 76 cts
    Net profit 713,000 vs profit 2,021,000
    Revs 24.9 mln vs 27.1 mln
    NOTE: Pretax net profits 113,000 dlrs vs 824,000 dlrs in
quarter and 1,863,000 dlrs vs 3,606,000 dlrs in year.


.I 19021
.C
acq
.W
STONE CONTAINER <STO> COMPLETES WAITING PERIOD.
    CHICAGO, March 6 - Stone Container Corp said it and
Southwest Forest Industries Inc <SWF> completed all waiting
period requirements under the Hart-Scott-Rodino Anti-Trust
Improvements Act of 1976.
    Stone said it will proceed with its previously proposed
acquisition of Southwest.


.I 19023
.C
coffee
.W
ICO QUOTA TALKS FAILURE PARALYSE HAMBURG MARKET.
    HAMBURG, March 6 - The failure of International Coffee
Organization talks on the reintroduction of quotas has
paralysed business on the Hamburg green coffee market in the
past week, trade sources said.
    There was only sporadic activity for spot material, which
was mainly requirement buying, they said, adding that
pre-registered coffees were no longer available.
    They said they expected Brazil and Colombia to open export
registrations for May shipment next week. However, the
president of the Brazilian Coffee Institute, Jorio Dauster,
said yesterday he had not yet decided when its registrations
would reopen.


.I 19025
.C
earn
.W
RESIDENTIAL MORTGAGE INVESTMENTS INC <RMI>PAYOUT.
    FORT WORTH, Texas, March 6 -
    Qtly div 24 cts vs 24 cts prior
    Pay April 10
    Record March 31


.I 19026
.C
acq
.W
SOUTHWEST <SWF>, STONE <STO> COMPLY FOR MERGER.
    PHOENIX, Ariz., March 6 - Southwest Forest Industries said
it and Stone Container Corp have complied with all federal
waiting period requirements for Stone's proposed 32.25 dlr per
share cash acquisition of Southwest.
    Southwest currently has 12.3 mln shares outstanding. The
companies entered into a merger agreement on January 27, and
made their initial findings with the Department of Justice and
the Federal Trade Commission on February three.
    Southwest said the waiting period expired on March 5,
without receiving a formal second request for information.
   
REUTER...^M

.I 19028
.C
earn
.W
OKC LIMITED PARTNERSHIP <OKC> SETS LOWER PAYOUT.
    DALLAS, March 6 - OKC Limited Partnership said it will make
a five ct per share distribution to unitholders, down from 15
cts in December and payable March 30 to holders of record March
18.
    The partnership said the payout is the largest quarterly
cash distribution allowable under terms of its letter of credit.


.I 19030
.C
earn
.W
BIOTECH RESEARCH LABORATORIES INC <BTRL> 4TH QTR.
    ROCKVILLE, Md, - March 6 -
    Shr profit one ct vs loss seven cts
    Net profit 63,761 vs loss 43,006
    Revs 1,961,219 vs 1,413,859
    Year
    Shr loss seven cts vs loss 20 cts
    Net loss 380,273 vs loss 1,108,151
    Revs 6,245,012 vs 5,368,522
    Shr out 5,950,000 vs 5,462,547


.I 19034
.C
grain;corn;
.W
CANADA UPHOLDS COUNTERVAIL DUTY ON U.S. CORN.
    OTTAWA, March 6 - The Canadian Import Tribunal ruled today
subsidized U.S. corn imports were injurious to Canadian growers
and upheld a countervailing duty of 84.9 U.S. cts a bushel set
earlier this year.
    The ruling is the result of trade action launched in 1985
by the Ontario Corn Producers Association that contended U.S.
subsidies were driving American corn prices below Canadian
production costs.
    A spokesman for the Department of Revenue said a study of
the level of the duty will be undertaken in the next six months
to determine if it should be adjusted.


.I 19035
.C
gnp;trade;jobs;income;retail;ipi;
.W
FEBRUARY U.S. JOBS GAINS SHOW STRONGER ECONOMY.
    by Kathleen Hays
    NEW YORK, March 6 - Momentum in th U.S. economy may be
picking up given solid across-the board increases in the
February U.S. employment report, economists said.
    U.S. non-farm payroll employment rose 337,000 in February,
twice what the financial markets expected. This follows a
319,000 gain in January, revised down from a previously
reported 448,000 increase.
    "Even if you look at January and February together, this is
still a much stronger report than the consensus expectation in
the market," said Allan Leslie of Discount Corporation.
    Economists stressed that gains in hours worked signal much
larger gains in February U.S. production and income than
previously forecast.
    The average work week rose 0.2 hours to 35.0 hours from
34.8 hours in January. The average manufacturing work week rose
0.3 hours to 41.2 hours, the longest factory work week since
November 1966, the Commerce Department said.
    "The gains in manufacturing employment point to a very
large increase in industrial production of between 0.5 and 0.7
pct," said Joe Carson of Chemical Bank. This compares to a 0.4
pct  gain in January U.S. industrial production.
    Peter Greenbaum of Smith Barney Harris Upham and Co Inc
noted that the average wage rate increased to 8.87 dlrs an hour
in February from 8.83 dlrs in January.
    "Combined with the increase in hours worked, this means
we'll get a pretty healthy gain in personal income vis-a-vis
the wage and salary disbursement," he said.
    Greenbaum said that February U.S. personal income should
rise at least 0.5 pct after being flat in January.
    He said the February employment gains are consistent with
his firm's first quarter U.S. real gross national product
growth forecast of 3.7 pct.
    Economists agreed that the employment data were negative
for the credit markets in that they signal a healthier economy
and no easing in the Federal Reserve's monetary policy. But
most said that the market need not fear tighter policy either.
    "This report is another reason for the Fed to not consider
easing," said Ray Stone of Merrill Lynch Capital Markets Inc.  
  "It gives them more room to address the dollar situation," he
said. "If they had to nudge policy tighter, they could do so,
but it's most likely they'll sit and wait."
    "The data have not been uniform," Stone added. "Durable
goods were weak in January and now employment is strong."
    In January, U.S. durable goods orders dropped 7.5 pct,
followed by a 4.0 pct drop in U.S. factory goods orders. U.S.
retail sales fell 5.8 pct, and the U.S. merchandise trade gap
widened to 14.8 billion dlrs.
    "Things just aren't adding up," said Steve Slifer of Lehman
Goverment Securities Inc. "Consumer spending, capital spending,
goverment spending, and net exports data show very weak first
quarter GNP growth of one pct," he said.
    "The employment and production data point to a big
inventory build-up, but that's what we thought in the fourth
quarter and we only got 1.3 pct GNP growth."
    Manufacturing employment gained 50,000 after falling 15,000
in January. Economists estimated that 30,000 of the gain was
accounted for by striking workers in the steel and machinery
industries returning to work.
    Even so, some economists said that the manufacturing gains
have resulted from an improving trade outlook.
    Jason Benderly of Goldman, Sachs and Co noted that the U.S.
trade picture improved in the fourth quarter as net exports
grew at a 20 pct annual rate while the rate of increase in
imports fell to only six pct, and that it continues to improve
in the first quarter.
    "Not only the official statistics for the fourth quarter,
but evidence of a pick up in orders from overseas for paper
products, chemicals, high-tech goods, and capital goods show
that trade is improving," Benderley said.
    "The economy is moving between extremes," he said. "Some
reports are going to look bad and some good, but first quarter
GNP is going to grow in the middle at about three pct."
    A 287,000 gain in services employment comprised the greater
part of February's employment gain. Retail services employment
rose 129,000 in February, compared to a gain of 117,000 in
January, previously reported at 166,000.
    Construction employment rose a slim 2,000 in February. But
this follows a robust 113,000 gain in January, revised down
from a previously reported 142,000 gain.
    The U.S. civilian unemployment rate was unchanged in
February at 6.7 pct. This means the jobless rate has stayed at
6.7 pct for three consecutive months, the lowest reading since
March 1980, the Commerce Department noted.
    "The Federal Reserve has to be pleased with this report,"
Carson said. "This takes away the Fed's flexibility to ease,
but there's no reason to tighten. It's way too early for that."
      


.I 19036
.C
earn
.W
AMERICAN STORES CO <ASC> 4TH QTR NET.
    SALT LAKE CITY, March 6 -
    Shr 1.57 dlrs vs 1.60 dlrs
    Net 55.7 mln vs 56.5 mln
    Revs 3.7 billion vs 3.6 billion
    Year
    Shr 3.79 dlrs vs 4.11 dlrs
    Net 144.5 vs 154.5 mln
    Revs 14.0 billion vs 13.9 billion
    NOTE: 1986 4th qtr and yr per shr amts includes reduction
of 15 cts per shr for establishment of reorganization reserves.
Tax increase reduced 1986 yr per shr by 26 cts.


.I 19037
.C
trade
.W
BAKER SAYS G-6 PACT JUST A START.
    WASHINGTON, March 6 - Treasury Secretary James Baker said
the agreement among industrial nations in Paris last month is
only a start in Washington's drive to intensify economic
cooperation among leading countries.
    In a speech to the National Newspaper Association, Baker
said "the six steps beginning with the Plaza Agreement and
culminating in the Paris Accord, are only a start."
    He added "we see our role as a steward of a process in which
we sit down with our industrial allies to find ways to promote
more balanced international growth."
    The Paris agreements called trade surplus countries to
strengthen their growth and on the U.S. to reduce its budget
deficit. Under such circumstances, the countries agreed their
currencies were within ranges broadly consistent with economic
fundamentals.
    Baker also said he still sees "ominous" signs of pressure for
protectionist trade legislation "and this pressure for
protectionism is coming from new areas of society."
    But he also said he believed a coalition was forming that
supported free trade.


.I 19039
.C
trade
.W
******TREASURY'S BAKER FORECASTS REDUCTION IN JAPANESE TRADE SURPLUS THIS YEAR.
Blah blah blah.

.I 19040
.C
dlr;money-fx;
.W
******TREASURY'S BAKER SAYS THERE HAS BEEN NO CHANGE IN U.S. POLICY ON DOLLAR.
Blah blah blah.

.I 19043
.C
money-fx;interest;
.W
FED NOT EXPECTED TO ACT IN MONEY MARKETS.
    NEW YORK, March 6 - The Federal Reserve is unlikely to
operate in the U.S. government securities market during its
usual intervention period this morning, economists said.
    Fed funds opened comfortably at 5-15/16 pct and remained at
that level. Yesterday Fed funds averaged 5.99 pct.


.I 19047
.C
earn
.W
BOSTON BANCORP <SBOS> SETS TWO FOR ONE SPLIT.
    BOSTON, March 6 - Boston Bancorp said its board declared a
two-for-one stock split, payable March 31, record March 17.


.I 19050
.C
dlr;money-fx;
.W
BAKER DENIES CHANGE IN U.S. POLICY ON DOLLAR.
    WASHINGTON, March 6 - Treasury Secretary James Baker said
there has been no change in U.S. policy on the value of the
dollar.
    Baker, when asked if the policy was changed in view of
comments yesterday by a senior Commerce Department official who
said he thought the Japanese yen was undervalued against the
dollar by 10 to 15 pct, replied, "No."
    Yesterday Robert Ortner, Undersecretary of Commerce for
Economic Affairs, said he thought the yen was undervalued but
said that was his personal view.
    This remark caused the dollar to drop as it appeared to
conflict with a recent agreement in Paris by the United States
and five other industrial nations that currency rates were at
about the right level to reflect underlying economic
conditions.
    Baker, who spoke earlier to the National Newspaper
Association, declined to elaborate on his statement about U.S.
policy.


.I 19052
.C
acq
.W
CORRECTION - MACANDREWS AND FORBES HOLDINGS.
    In New York story headlined "MacAndrews and Forbes Holdings
bids for Revlon," pls read in headline and first paragraph,
"MacAndrews and Forbes considers bid for Revlon," and in first
paragraph, "MacAndrews and Forbes holdings Inc said it is
considering making a proposal." (Corrects from "bids for
Revlon," in headline and "will offer"in first paragraph)

.I 19053
.C
ship
.W
SOME SHIPPING RESTRICTIONS REMAIN ON RHINE.
    BONN, March 6 - Limited shipping restrictions due to high
water remain in force on parts of the West German stretch of
the Rhine river between the Dutch border and the city of Mainz
but most are expected to be lifted this weekend.
    water authority officials said The restrictions, caused by
high water levels, include speed limits and directives to keep
to the middle of the river to prevent damage to the river
banks. The high water was expected to recede within two days to
below levels at which the restrictions come into force.
    Traffic was halted briefly late Tuesday night, Wednesday
and parts of Thursday on stretches of the Rhine between Bonn
and Koblenz but the shipping bans were lifted, the officials
said. Shipping is now permitted on all parts of the West German
section of the Rhine, with restrictions in some areas.


.I 19055
.C
acq
.W
HAWKER SIDDELEY OFFER FOR CLAROSTAT <CLR> ENDS.
    NEW YORK, March 6 - <Hawker Siddeley Group PLC>'s offer of
74 dlrs a share for all of Clarostat Mfg Co Inc's stock was
scheduled to expire at 2400 EST yesterday.
    Company officials were unavailable for comment as to why
the American Stock Exchange had stopped trading in Clarostat's
stock for a pending news announcement.


.I 19056
.C
acq
.W
TAFT <TFB> GIVEN DEADLINE ON BUYOUT PROPOSAL.
    PROVIDENCE, R.I., March 6 - Narragansett Capital Inc <NARR>
said it and Dudley S. Taft have requested a response from Taft
Broadcasting Co by March 12.
    Earlier today, Taft Broadcasting said Taft, the company's
vice chairman, and Narragansett had offered 145 dlrs for each
of Taft's 9.2 mln outstanding shares.
    The company said the offer is conditioned on approval of
its board, but a spokesman declined comment on whether or not
the board has scheduled a meeting.
     The Narragansett/Taft group will provide the equity portion
of the offer by contributing at least 125 mln dlrs in cash and
Taft Broadcasting common, Narragansett said.
    It said the group has been advised by First Boston Inc's
<FBC> First Boston Corp that the investment banker is "highly
confident that financing for the acquisition can be
consummated."
    Narragansett said the offer is subject to negotiation of a
definitive merger agreement and definitive financing agreements
as well as approval by regulators, Taft's board and Taft's
stockholders.
    The Narragansett/Taft group said its letter to Taft's board
states the group intends to return control over a significant
portion of the company's equity to the Taft family while
providing other stockholders with a means of realizing a very
attractive value for their shares.


.I 19063
.C
earn
.W
<PETER MILLER APPAREL GROUP INC> 3RD QTR LOSS.
    Toronto, March 6 - period ended January 31
    Shr loss 28 cts vs profit seven cts
    Net loss 931,000 vs profit 7,000
    Sales 2,303,000 vs 2,006,000
    Nine mths
    Shr loss 55 cts vs profit seven cts
    Net loss 1,619,000 vs profit 185,000
    Sales 7,684,000 vs 7,059,000
    Note: per share reflects issue of 600,000 shares in October
1986.


.I 19065
.C
acq
.W
SANTA FE SOUTHERN <SFX> APPEALS MERGER RULING.
    CHICAGO, March 6 - Santa Fe Southern Pacific Corp said it
filed a petition asking the U.S. Interstate Commerce Commission
to reconsider its earlier rejection of the merger of the
holding company's railroad assets.
    The ICC had rejected in July the merger of the Santa Fe and
Southern Pacific Railroads on the grounds that it would reduce
competition.
    Santa Fe in its petition outlines an array of
pro-competitive agreements with other railroads which would
preserve the economic benefits of the merger for the merged
railroad and the public.
    If the commission agrees that public benefits and
competitive enhancements will result, it can vote to reopen the
merger case. Interested parties have until March 25 to file
statements in response to the supplemental petition.


.I 19066
.C
trade
.W
BAKER SEES LOWER JAPANESE TRADE SURPLUS.
    WASHINGTON, March 6 - U.S. Treasury Secretary James Baker
said the Japanese trade surplus would begin to decline this
year.
    He told the National Newspaper Association "You're going to
see a reduction in the Japanese trade surplus -- some of it
this year".
    But he said the reduction would be due principally to the
exchange rate shifts since the Plaza Agreement, and these
shifts would take a long time to work their way through the
system.


.I 19067
.C
earn
.W
******CINEPLEX ODEON CORP YEAR OPER SHR BASIC 1.04 DLRS VS 77 CTS.
Blah blah blah.

.I 19068
.C
acq
.W
MONFORT <MNFT> SOARS ON ACQUISITION AGREEMENT.
    NEW YORK, March 6 - Monfort of Colorado Inc soared 21-1/2
to 75 in over-the-counter trading, responding to an
announcement late yesterday that the firm will be acquired by
Conagra Inc <CAG>.
    According to a letter of intent signed by both companies,
Conagra will offer 2.5 of its own shares for each of Monfort's
4.3 mln outstanding shares.
    Conagra fell one to 33 on the New York Stock Exchange.
Monfort is an integrated beef and lamb producer.


.I 19070
.C
acq
.W
NORDBANKEN TO AUCTION ITS FERMENTA SHARES.
    STOCKHOLM, March 6 - Sweden's <Nordbanken> banking group
said it would sell the 4.2 mln B free shares deposited as loan
collateral by Fermenta AB's <FRMS.ST> founder and former chief
executive Refaat el-Sayed and it planned to buy them up itself.
    The bank said the sale - by public auction on March 16 --
was because of a debtor's inability to repay an overdue loan.
    The B free shares closed at 16.50 crowns on the bourse's
unofficial list -- down from a peak of 300 in January 1986.
Nordbanken said it did not exclude accepting a suitable bid for
the shares although it expected to buy them back itself.
    The statement said the sale did not represent any
withdrawal from Nordbanken's undertakings towards the Fermenta
group and that it had been sanctioned by the other main
shareholders.
    Nordbanken is Fermenta's third largest creditor with loans
of 155 mln crowns. It was one of the four Swedish banks which
last month agreed to advance the group 110 mln crowns to solve
its immediate liquidity problems. Together with two other main
shareholders, it also advanced Fermenta an additional 65 mln
crowns until a new equity issue could be made.
    Fermenta is due to hold an extraordinary shareholders'
meeting on Tuesday to approve the planned equity issue.
    Nordbanken had to make a provision against a 200 mln crown
loan to el-Sayed in its 1986 results.
    Fermenta's new management originally hoped to raise 160 mln
crowns through the new one for four rights issue and an extra
170 mln from an issue to Nordbanken, another major creditor and
shareholder <Gotabanken> and the group's new majority owner
<Industrivarden AB>.
    The share price was to be 20 crowns. But there has been
doubt over the plans since the stock fell below this level this
week after Fermenta's former chairman Kjell Brandstrom said the
company was in a much worse state than he thought.


.I 19076
.C
earn
.W
UNITED INDUSTRIAL CORP <UIC> 4TH QTR LOSS.
    NEW YORK, March 6 -
    Shr loss 1.27 dlrs vs profit 43 cts
    Net loss 17.0 mln vs profit 5,667,000
    Sales 67.8 mln vs 70.1 mln
    Year
    Shr loss 69 cts vs profit 2.18 dlrs
    Net loss 9,174,000 vs profit 29.1 mln
    Sales 272.5 mln vs 269.4 mln
    Avg shrs 13.3 mln vs 13.4 mln
    NOTE: 1986 net includes tax credits of 14.5 mln dlrs in
quarter and 8,408,000 dlrs in year.
    1985 year net includes 616,000 dlr loss from discontinued
operations and 10.6 mln dlr gain on their disposal.
    1986 net both periods includes 19.1 mln dlr provision for
future losses from several major projects in defense contractor
subsidiary.
    Backlog 310 mln dlrs, up six pct from a year before.
    Share adjusted for 10 pct stock dividend in February 1987.


.I 19077
.C
earn
.W
<CINEPLEX ODEON CORP> YEAR NET.
    TORONTO, March 6 -
    Oper shr basic 1.04 dlrs vs 77 cts
    Oper shr diluted 89 cts vs 60 cts
    Oper net 31.6 mln vs 12.5 mln
    Revs 500.6 mln vs 170.9 mln
    Avg shrs 29.1 mln vs 14.3 mln
    Note: 1985 net excludes extraordinary gain of 1,756,000
dlrs or 12 cts shr basic and eight cts shr diluted.
    1986 net involves 53-week reporting period to reflect
change in yr-end to coincide with calendar yr.


.I 19078
.C
acq
.W
MINE SAFETY APPLIANCES <MNES> TO SELL UNIT.
    PITTSBURGH, March 6 - Mine Safety Appliances Co said it
agreed to sell its filter products division to Donaldson Co Inc
<DCI> for undisclosed terms.
    It said the filter products unit will be relocated from its
plant in Pennsylvania to a Donaldson facility in Illinois. It
said it expects a number of the unit's 100 employees will be
offered positions with Donaldson.


.I 19081
.C
earn
.W
PROSPECT GROUP INC <PROSZ> 4TH QTR LOSS.
    NEW YORK, March 6 -
    Shr loss 10 cts vs loss 50 cts
    Net loss 1,830,000 vs loss 3,584,000
    Revs 40.7 mln vs 26.8 mln
    Avg shrs 19.2 mln vs 7,115,847
    12 mths 
    Shr profit 10 cts vs loss 91 cts
    Net profit 1,422,000 vs loss 6,195,000
    Revs 185.7 mln vs 126.9 mln
    Avg shrs 14.8 mln vs 6,811,280
    NOTES: In May 1986 Prospect raised 101,810,0000 dlrs from
an initial public offering of common stock.
    The company purchased in March 1986 MidSouth Corp, a
regional railroad company in Mississippi and Louisiana, which
contributed sales of 39.5 mln dlrs and operating income of 16.3
mln dlrs during first nine months of operation.


.I 19082
.C
earn
.W
FRANCE FUND INC <FRN> SETS INITIAL DIVIDEND.
    NEW YORK, March 6 - France Fund Inc said its board declared
an initial dividend of 1.12 dlrs per share, payable April six,
to holders of record March 20.
    The fund said the dividend represents two cts per share for
net investment income realized during 1986 and 1.10 dlrs from
net taxable gains realized during the year.


.I 19084
.C
earn
.W
HEINEKEN N.V. <HEIN.AS> 1986 YEAR.
    AMSTERDAM, March 6 -
    Pre-tax profit 513.2 mln guilders vs 545.5 mln
    Net profit 285.3 mln guilders vs 265.4 mln
    Consolidated net turnover 6.68 billion guilders vs 6.40
billion
    Net profit per 25.00 guilder nominal share 11.11 guilders
vs 10.33, taking into account one-for-three scrip issue last
year
    Final dividend two guilders vs same, making total 3.50
guilders vs same


.I 19085
.C
earn
.W
NATIONAL SECURITY INSURANCE CO <NSIC> 4TH QTR.
    ELBA, Ala., March 6 -
    Oper shr loss 15 cts vs profit 57 cts
    Oper net loss 151,000 vs profit 570,000
    Year
    Oper shr profit 2.08 dlrs vs loss 12 cts
    Oper net profit 2,122,000 vs loss 127,000
    NOTE: Net excludes realized capital loss 19,000 dlrs vs
gain 896,000 dlrs in quarter and gains 1,646,000 dlrs vs
1,331,000 dlrs in year.
    1986 net both periods excludes tax credit 1,288,000 dlrs.


.I 19089
.C
earn
.W
CYPRUS MINERALS <CYPM> NAMED IN SUITS.
    DENVER, March 6 - Cyprus Minerals Co said along with about
40 other companies, it has been named a defendant in 23 product
liability lawsuits filed in California by individual
tireworkers aleging injury as a result of exposure to talc and
other products.
    It said other suits are expected to be brought.
    Cyprus, which produces talc, said it has significant
factual and legal defenses and substantial insurance coverage
and does not expect the suits to have a material adverse impact
on its financial condition.


.I 19090
.C
acq
.W
DONALDSON <DCI> TO BUY MINE SAFETY <MNES> UNIT.
    MINNEAPOLIS, March 6 - Donaldson Co Inc said it reached an
agreement to buy the assets of the Filter Products Division of
Mine safety Appliances Co for undisclosed terms.
    It said Filter Products will operate as part of Donaldson's
Industrial Group and its manufacturing operations will be
relocated to Dixon, Ill., from Evans City, Pa.
    Donaldson said the acquisition complements its
microfiltration business and internal research and development
efforts.


.I 19092
.C
earn
.W
ARUNDEL CORP <ARL> 4TH QTR NET.
    BALTIMORE, March 6 -
    Shr 1.73 dlrs vs 1.66 dlrs
    Net 3,637,000 vs 3,789,000
    Revs 27.6 mln vs 26.6 mln
    Year
    Shr 3.47 dlrs vs 2.34 dlrs
    Net 7,815,000 vs 5,340,000
    Revs 94.3 mln vs 81.9 mln


.I 19095
.C
money-fx;interest;
.W
******FED SETS ONE BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 19098
.C
ship
.W
MIDMISSISSIPPI RIVER OPENS TODAY FOR SEASON.
    CHICAGO, March 6 - The Mississippi River is now open for
barge traffic up to the Twin Cities in Minnesota after repairs
were completed and the first barges moved upstream through Lock
and Dam 20 near Quincy, Ill at 0600 CST today, an Army Corps of
Engineers spokesman said.
    About 14 to 15 inches of ice were reported between locks
three and four on the upper Mississippi River, but other
sections were generally free of ice, the spokesman said.
    Midwestern weather has been so mild that barges probably
could have kept loading at Mid-Mississippi River terminals
through the winter, if Lock and Dam 20 had not been scheduled
for repairs, he said.
    The Peoria and La Grange locks on the Illinois River are
still scheduled to close July 13, for two months of repairs.


.I 19100
.C
money-fx;interest;
.W
FED SETS ONE BILLION DLR CUSTOMER REPO.
    NEW YORK, March 6 - The Federal Reserve entered the
government securities market to arrange one billion dlrs of
customer repurchase agreements, a spokesman for the New York
Fed said.
    Fed funds were trading at 5-15/16 pct at the time of the
indirect injection of temporary reserves, dealers said.


.I 19103
.C
reserves;money-supply;
.W
GERMAN CASH IN CIRCULATION UP AT FEBRUARY'S CLOSE.
    FRANKFURT, March 6 - Cash in circulation in West Germany
rose by 2.8 billion marks in the last week of February to 121.5
billion, a gain of 8.3 pct over the same month last year, the
Bundesbank said.
    Cash in circulation is one of two components of the West
German money supply which the German central bank is targeting
to grow between three and six pct this year.
    Gross currency reserves in the week rose by 200 mln marks
to 109.5 billion. Foreign liabilities fell 100 mln to 22.9
billion, giving a net currency reserves increase of 300 mln to
86.6 billion.
    Commercial bank minimum reserve holdings at the Bundesbank
fell 300 mln marks to 51.9 billion marks at the end of
February, averaging 51.2 billion over the month.
    The rediscount debt of the banking system fell 800 mln
marks to 55.2 billion marks, the Bundesbank said.
    Banks made heavy use of the Lombard emergency funding
facility to meet month-end payments and borrowed 3.1 billion
marks, a rise of 2.9 billion over the week before.
    The net position of public authorities at the Bundesbank
declined 6.7 billion marks in the last week of February.
    The federal government drew down 3.8 billion marks of its
Bundesbank cash deposits, which had stood at 4.1 billion in the
third week of February, and also borrowed a 1.8 billion in
credit from the central bank.
    Federal states' deposits fell 1.5 billion marks to 1.3
billion and their cash credits dropped 400 mln to 300 mln.
    The Bundesbank balance sheet total rose around 5.44 billion
to 222.22 billion marks.


.I 19104
.C
earn
.W
GULF STATES UTILITIES <GSU> GETS QUALIFIED AUDIT.
    BEAUMONT, Texas, March 6 - Gulf States Utilities Co said
auditor Coopers and Lybrand has issued a qualified opinion on
1986 financial statements.
    Gulf States said the audit opinion satated that without
sufficient rate increases or funds from other sources, Gulf
states may be unable to maintain its financial viability,
which is necessary to permit the realization of its assets and
the liquidation of its liabilities in the ordinary course of
business.
    IT said it received a similar qualified opinion in 1985.


.I 19105
.C
earn
.W
SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 NET.
    CRYSTAL LAKE, ILL., March 6 - 
    Shr profit 15 cts vs loss six cts
    Net profit 1,051,000 vs loss 381,000
    Revs 50.8 mln vs 41.8 mln
    Avg shrs 7,033,00 vs 6,557,000
    NOTE: 1987 net includes tax credits equal to six cts vs one
cent in 1986.


.I 19106
.C
crude
.W
ECUADOR SAYS SUSPENDS OIL EXPORTS DUE EARTHQUAKE.
    QUITO, March 6 - Ecuador today suspended its crude oil
exports indefinitely due to an earthquake last night that
damaged pumping and crude transport installations, an Energy
and Mines MInistry statement said.
    It said the state oil firm Corporacion Estatal Petrolera
Ecuatoriana (CEPE) notified foreign customers that it was
declaring force majeure on its crude exports due to the tremor.
    Ecuador"s OPEC oil output quota is 210,000 barrels per day
(bpd).
    A senior energy ministry official said that one pumping
station at El Salado on Ecuador's main pipeline was damaged.
    He also said an 180 metre section of the pipeline attached
to the bridge over the Aguarico river collapsed.
    The pumping station was about 20 km from the Reventador
volcano, near the epicentre of the quake, which Ecuadorean
seismologists said registered six on the 12-point international
Mercalli scale. The Aguarico bridge was also close to the
volcano, he said.
    The quake struck northern Ecaudor and southern Colombia,
according to Ecuadorean officials. No injuries were reported.


.I 19109
.C
earn
.W
LEASEWAY TRANSPORTATION CORP <LTC> 4TH QTR LOSS.
    CLEVELAND, March 6 -
    Oper shr loss 39 cts vs profit 62 cts
    Oper net loss 4,628,000 vs profit 7,256,000
    Revs 338.1 mln vs 327.9 mln
    Year
    Oper shr profit 1.12 dlrs vs profit 1.88 dlrs
    Oper net profit 13.2 mln vs 22.2 mln
    Revs 1.32 billion vs 1.29 billion
    NOTE: Net excludes gains from discontinued leasing
operations of 37.6 mln dlrs vs 40.3 mln dlrs in year and 32.6
mln dlrs vs 34.3 mln dlrs in quarter.  Results restated for
discontinued operations.
    1986 net both periods includes charge 6,300,000 dlrs from
elimination of investment tax credits.


.I 19111
.C
earn
.W
NCH CORP <NCH> 3RD QTR JAN 31 NET.
    IRVING, Texas, March 6 -
    Shr 51 cts vs 44 cts
    Net 4,710,000 vs 4,086,000
    Sales 109.2 mln vs 98.2 mln
    Nine mths
    Shr 1.62 dlrs vs 1.39 dlrs
    Net 15.0 mln vs 13.6 mln
    Sales 314.6 mln vs 279.7 mln


.I 19113
.C
earn
.W
NATIONWIDE HAD 1986 PROPERTY-CASUALTY LOSS.
    COLUMBUS, Ohio, March 6 - <Nationwide Mutual Insurance Co>
said its property-casualty companies had a net loss of 56 mln
dlrs last year while its life insurance operations earned 66.8
mln dlrs.
    Nationwide said its property-casualty group, the
fourth-largest U.S. property-casualty insurer had a 106 mln dlr
loss in 1986. Nationwide Life Insurance Co earned 62.8 mln dlrs
in 1985, with last year's profit including record capital gains
of 14.4 mln dlrs, up from gains of 2.6 mln dlrs the previous
year.
    The company said its property-casualty group had a record
loss from insurance operations last year of 859 mln dlrs after
policyholders' dividends, up 25 pct from 1985's 710 mln dlrs.
    Nationwide said a surge in claims from personal auto
insurance and the volatile commercial liability coverages
during a period of unprecedented sales growth generated the
loss.
    The company said over 576 mln dlrs of last year's group
losses came from commercial insurance lines and 282 mln dlrs
from its personal auto insurance business.
    Partially offsetting 1986's record insurance losses,
Nationwide said, were record investment gains of 775 mln dlrs
and a 28 mln dlr federal tax credit. The investment gains were
up 39 pct from 1985's gains of 559 mln dlrs.


.I 19114
.C
heat
.W
SUN <SUN> RAISES HEATING OIL BARGE PRICE.
    NEW YORK, March 6 - Sun Co's Sun Refining and Marketing
subsidiary said it increased the price it charges contract
barge customers for heating oil in New York harbor 0.50 cent a
gallon, effective today.
    They said the 0.50 cent increase brings Sun's contract
barge price to 49 cts. The recent price hike represents the
fifth this week, totalling 4.75 cts. The increases are
following sharp spot and futures price rises, the company said.


.I 19115
.C
money-fx;interest;
.W
FRENCH PRIMARY BOND MARKET SHOWS NEW SPARKLE.
    By Pierre Suchet, Reuters
    PARIS, March 6 - The French primary bond market is showing
signs of renewed effervescence after several weeks of lethargy
and the trend is expected to continue if hopes of imminent
interest rate cuts are fulfilled, market operators said.
    The Bank of France is generally expected to give a signal
to the market, possibly at the beginning of next week, by
announcing a quarter point cut in its intervention rate, which
has stood at eight pct since January 2, or in its seven-day
repurchase rate, set at 8-3/4 pct since January 5.
    The central bank's averaged-out day to day call money rate,
the reference rate for interbank money market operators, which
reached 8-3/4 pct on February 18 has fallen to 7-3/4 pct this
week, dealers noted.
    The Bank of France's "open market" policy to regulate the
money markets since December has been based on a floor and
ceiling of rates within the limits of its intervention and
seven day repurchase rates.
    For the moment the sentiment is of "wait and see" on rate
cuts, but there are now more optimists than pessimists among
market operators, a dealer for a major French bank said.
    Dealers said there is abundant liquidity on the bond
market, noting that this week's monthly Treasury tap issue of
11.87 billion francs had a good reception and was fairly easily
absorbed.
    The Treasury had set an upper limit on the issue of 12
billion francs and was likely to continue to try and sell as
much paper as it could over coming months to meet its borrowing
needs for this year of around 150 billion, one banker said.
    Dealers said there was no difficulty in placing liquidity
in the primary market at the moment despite competition from
the surge in investments on the Paris stock exchange.
    There has been a flood of large bond issues, but with
formulas well adapted to market conditions and investor demand
- with warrants or a mix of fixed and floating-rates - which
have been snapped up, and with generally broadly negative fees.
    Dealers pointed to the recent Caisse d'Aide a l'Equipement
des Collectivites Locales (CAECL) 8.90 pct two billion franc
bond with warrants exchangeable for floating-rate bonds issued
over 13 years and 80 days at 97.04 pct with payment date March
9, which was today quoted at -0.90 to -1.10 pct.
    Even classic fixed-rate issues, after being neglected since
the end of last year, are finding buyers, one banker said.
    Dealers said that now the question was to see how the terms
of imminent operations would be set, with great market interest
focussed on the likely three next issues.
    These will include an expected four to five billion franc
issue for Electricite de France, to be followed by a bond of
around one billion francs for Auxiliaire du Credit Foncier, a
subsidiary of the banking group Credit Foncier de France, and a
new issue by tender from the mortgage agency Caisse de
Refinancement Hypothecaire.


.I 19117
.C
acq
.W
FIRST WOMEN'S BANK INVESTOR GROUP OFFER EXPIRES.
    NEW YORK, March 6 - The investor group owning about 42 pct
of the outstanding capital stock of <The First Women's Bank>
said a cash tender offer for the bank's remaining outstanding
shares at 11 dlrs per share expired on March three.
    The investors said about 132,000 shares, or about 20 pct of
the outstanding, had been tendered.


.I 19118
.C
earn
.W
COMPUTER MEMORIES INC <CMIN> 3RD QTR LOSS.
    CHATSWORTH, Calif., March 6 - Period ended December 31.
    Shr loss nine cts vs loss 1.92 dlrs
    Net loss 950,000 vs loss 21,334,000
    Revs 580,000 vs 22.2 mln
    Nine Mths
    Shr loss six cts vs loss 1.23 dlrs
    Net loss 694,000 vs loss 13,710,000
    Revs 5,129,000 vs 111.9 mln
    Note: Current qtr includes tax loss of 118,000 vs loss of
476,000 dlrs.


.I 19126
.C
earn
.W
TRENWICK GROUP INC <TREN> 4TH QTR NET.
    WESTPORT, Conn., March 6 -
    Oper shr profit 18 cts vs loss four cts
    Oper net profit 1,847,000 vs loss 282,000
    Revs 25.9 mln dlrs vs 8,626,000 drs
    12 mths
    Oper shr profit 39 cts vs loss 24 cts
    Oper net profit 3,262,000 vs loss 1,555,000
    revs 67.5 mln vs 27.9 mln dlrs.
    NOTE: 1986 qtr and year excludes investment gains of
1,541,000 and 1,865,000, respectively, and 1985 qtr and year
includes investment gains of 301,000 dlrs and 1,424,000.


.I 19127
.C
interest;gnp;
.W
IMF URGES BELGIUM TO MAKE FURTHER SPENDING CUTS.
    BRUSSELS, March 6 - The Belgian government, which
introduced large-scale public spending reductions last year,
has been told by an International Monetary Fund team there is
scope for further cuts in 1988.
    The suggestion is contained in the preliminary conclusions
of the annual IMF consultations with Belgium on its economic
policy, a copy of which was distributed to journalists at the
weekly press conference following meetings of the cabinet.
    The IMF team also urges Belgium to adopt a firm interest
rate policy, with a particular emphasis on long-term rates.
    The team's report to the government praises last year's
spending cuts, which are due to reduce 1987 government spending
by 195 billion francs, and says 1986 saw the Belgian economy
perform "better, on a broader basis, than at any time so far in
the 1980s."
    However, it adds that with lower inflation, stabilisation
of the debt to gross national product ratio requires a much
lower budget deficit than the seven pct of GNP target the
government has set itself for 1989.
    The government's net financing requirement was 11.0 pct of
GNP in 1986.
    The report says "The most that can be afforded over the next
few years is a zero growth of real non-interest expenditure of
general Government."
    It says there is a need for a revision of the Belgian tax
system to iron out distortions and meet hopes of a reduced tax
burden but substantial progress is needed in stabilising the
debt to GNP ratio before this is possible.
    "Because of the difficulty of sustaining zero expenditure
growth and of likely growing impatience (for) tax reductions,
we feel that your position would be stronger if you could
decide on rather sharp expenditure reductions in 1988," the
report adds.
    The IMF urges a strong interest rate policy to signal the
government's determination to keep its currency strong and to
curb inflation.
    It says firmer long-term rates would slow private net
long-term capital outflows, which increased strongly in 1986.
    It also urges net repayments of foreign currency debt and
an overhaul of domestic capital markets to facilitate the
subscriptions by non-residents of government bond issues in
Belgian francs.


.I 19129
.C
earn
.W
BUSH <BSH> REVISES 4TH QTR, YEAR RESULTS UP.
    JAMESTOWN, N.Y., March 6 - Bush Industries Inc said that
after an audit it has revised upwards its 1986 fourth quarter
and year end results. On February 12 it reported unaudited
results.
    Under the audited amounts, 1986 fourth quarter income was
1,098,978 mln dlrs, or 55 cts a share. The unaudited income for
the period was 1,014,000, or 51 cts per share.
    For the year, the audited amounts showed earnings of
2,505,978, or 1.25 dlrs per share. The prior results reported
income of 2,421,000, or 1.21 dlrs per share. Sales figures for
both periods did not differ significantly from prior amounts.


.I 19132
.C
acq
.W
FURNITURE (UFURF) UPS BENCH CRAFT (SOFA) STAKE.
    WASHINGTON, March 6 - Universal Furniture Ltd said in a
filing with the Securities and Exchange Commission that it had
increased its stake in Bench Craft Inc common stock to
2,548,975 shares or 45.3 pct of the total outstanding.
    Universal said its Universal Furniture Industries N.V. unit
bought 235,750 Bench Craft shares March 4 in the
over-the-counter market.


.I 19136
.C
earn
.W
CLEVITE INDUSTRIES INC <CLEV> 4TH QTR OPER LOSS.
    GLENVIEW, Ill., March 6 -
    Oper net loss 411,000 vs profit 875,000
    Sales 69.7 mln vs 70.5 mln
    Year
    Oper net profit 6,258,000 vs profit 4,785,000
    Sales 299.5 mln vs 297.2 mln
    Note: Company made initial public offering in June, 1986.
Assuming the offering had occurred on Jan. 1, 1986, operating
net income per share would have been 85 cts a share for 1986.
    1986 oper net excludes one-time charge of 16.8 mln dlrs, or
2.46 dlrs a share, in qtr and year due to the February 1987
sale of the company's engine parts division. Oper net for 1986
year also includes profit from discontinued operations of
360,000 dlrs, or five cts a share.
    Oper net for 1986 excludes extraordinary loss of 1.1 mln
dlrs, or 17 cts a share, due to the June 1986 write-off of
unamortized debt issue costs from the public offering. 1985
oper net excludes extraordinary profit of 1.1 mln dlrs.


.I 19138
.C
earn
.W
CMS ADVERTISING SETS 3-FOR-2 STOCK SPLIT.
    OKLAHOMA CITY, March 6 - <CMS Advertising Inc> said its
board has approved a three-for-two stock split in the form of a
dividend payable March 30 to holders of record March 16.
    The company said a similar split was paid December eight,
leaving it with 2,344,200 shares outstanding.
    CMS Advertising said the next split will result in a
proportionate reduction in the exercise price of its stock
purchase warrants to 1.67 dlrs a share from 2.50 dlrs.


.I 19140
.C
earn
.W
CIE FINANCIERE DE PARIBAS <PARI.PA> 1986 YEAR.
    PARIS, March 6 -
    Parent company net profit 385 mln francs vs 226.9 mln
    Dividend five francs vs no comparison
    Note - The financial and banking group was privatised by
the government in January this year.


.I 19141
.C
earn
.W
CORRECTION - HEINEKEN 1986 YEAR.
    In item headlined "HEINEKEN N.V. <HEIN.AS> 1986 YEAR" please
read in first line pre-tax profit 513.2 mln guilders vs 454.5
mln.
    Corrects year ago comparison to 454.5 mln from 545.5 mln.


.I 19143
.C
interest
.W
BANK OF ENGLAND PRESSURE HOLDS BASE RATES.
    By Rowena Whelan, Reuters
    LONDON, March 6 - This week's Bank of England resistance to
strong market pressure for lower interest rates succeeded in
holding bank base rates at 11 pct.
    But at a cost of threatening the Chancellor of the
Exchequer Nigel Lawson's policy, stated at the end of the Paris
Group of Six meeting last month, that he wanted to see sterling
broadly stable about then prevailing levels, market sources
said.
    Since then, the pound has risen to 71.8 pct on its closing
trade-weighted index, up from 69.7 pct imediately after the
Paris meeting and up 0.4 on the day.
    Today's peak at 72.0 pct was its highest since August 19.
    A Treasury spokesman said Lawson had said he neither wanted
a substantial rise or fall in sterling. The question is
therefore how large a rise he is ready to see before acting.
    Paul Temperton, chief economist at Merrill Lynch Europe
Ltd, estimated that the government wanted to see the
trade-weighted index about 72-73 pct. "Even after this action
over the last few weeks, sterling's only just within striking
distance of that range," he said.
    Other analysts agree that the government probably has some
broad target range around this area.
    However, they said Lawson would be prepared to see the
pound go higher at least in the short term, despite the risk of
a loss of export competitiveness and cheaper prices on imports.
    "If the Bank of England keeps the interest rates as they
are, what's to stop it (going higher)," said John Cox, executive
director of EBC Amro Bank Ltd, a major operator on the London
foreign exchange market.
    Cox estimates that the Bank of England has been active
selling sterling over the past few days, despite the lack of
general market talk of such intervention, and this has helped
keep it below 1.60 dlrs.
    The pound rose to 1.5870 dlrs from 1.5764 yesterday and
1.5400 February 23, the day after the Paris meeting.
    But Cox says the government must be worried with sterling
heading toward 2.95 marks and would be very concerned if it
holds around these levels.
    He warned the Bank may run the risk of missing the interest
rate boat. "If rates don't come down, the market will say they
ought to have come down and will sell sterling," he said.
    Most dealers agree there is a good deal of "hot money" being
invested in sterling, money simply attracted by high overnight
or one-week rates, which could flow out at equally short
notice.
    However, the authorities will hope that at least a
proportion of the buying reflects long-term investment.
    "The last thing they want to do is reduce them (rates) and
have to jack them back up again," said Richard Jeffrey,
economist at brokerage house Hoare Govett Ltd.
    He said a half point cut would ensure continued support for
sterling, at least in the near term.
    However, most analysts are still looking for a full point
about March 17, Budget Day.
    The Bank must hold out until it sees the reaction to the
Budget, said Temperton.
    The Budget is widely forecast to be a vote winner in the
run-up to a general election, the major factor behind current
bullishness in the government bond and currency markets.
    "Lawson wants to delay a cut in base rates until the budget.
He wants it to be crowned with the glory of an interest rate
cut," said Ian Harwood, economist at Warburg Securities, the
equities arm of Mercury International Group.
    Speculation a clearing bank might break ranks and lead the
way lower were confounded today. There was excitement a fall in
the weekly Treasury Bill rate to 9.7 pct from 10.2 pct last
Friday might mean the Bank had changed its mind.
    This followed the imposition of penal lending rates of 11
3/4 pct on the discount houses yesterday, and was the lowest
since base rates were at 10 pct, early last October.
    However, with this Bill rate pertaining to three-months
money, banking sources said the market could not take the cut
as a guide to the Bank's intentions on short term rates.


.I 19145
.C
grain;corn;
.W
LYNG DISAPPOINTED BY CANADA CORN INJURY DECISION.
    WASHINGTON, March 6 - U.S. Agriculture Secretary Richard
Lyng said he is "very disappointed" by a Canadian government
finding that U.S. corn has injured Ontario Corn growers.
    "This action is not helpful in the context of the ongoing
U.S.-Canada free trade talks or in the new round of
multilateral trade negotiations," Lyng said in a statement.
    The Canadian government today said Ottawa would continue to
apply a duty of 84.9 cents per bushel on U.S. corn imports.
    Lyng said the U.S. made a case that U.S. corn imports are
not the cause of any problem of Canadian corn producers, adding
that U.S. corn exports to Canada are declining.
    "Apparently they (Canada) have ignored the fact that
Canadian corn and other coarse grain production is rising
faster than consumption," Lyng said.


.I 19146
.C
acq
.W
BANCROFT <BCV> SHAREHOLDERS REBUKE ZICO OFFER.
    NEW YORK, March 6 - Bancroft Convertible Fund Inc, the
target of an unfriendly cash offer by <Zico Investment Holdings
Inc>, said its shareholders approved proposals requiring a
66-2/3 pct affirmative vote of all outstanding shares before
fundamental changes in its status could be made.
    Previously, only a simple majority of outstanding shares
was needed to change Bancroft's investment status from a
diversified to a non-diversified fund, among other things.
    Bancroft said its board continues to recommend that
stockholders not tender their shares to Zico, a British Virgin
Islands company which it said had ties to South Africa.


.I 19147
.C
earn
.W
INT'L TOTALIZATOR <ITSI> SEES BETTER 1ST QTR.
    NEW YORK, March 6 - International Totalizator Systems Inc
Vice President of Finance Joel Graff said he expects to report
an improved first quarter compared to the 377,000 dlr loss
reported in the year ago quarter.
    "A profit looks quite favorable," Graff said.
    Last week, the automated ticket systems supplier reported a
loss of 1.2 mln dlrs for the 1986.
    Graff said "we invested heavily in 1986, which we believe
will result in higher future growth and earnings for the
company."


.I 19155
.C
acq
.W
BOC GROUP COMPLETES SALE OF UNIT TO CONTROLS.
    MURRAY HILL, N.J., March 6 - <BOC Group Inc>'s Airco
Distributor Gases finalized the sale of its Virginia-based gas
appaturs business to <Controls Corp of America>, a newly formed
investment group organized by former Airco employees.
    Under the terms of the sale, Airco said Controls will
continue to make the gas apparaturs product line under the
Airco brand name, marketing the products exclusively through
the Airco's distributor network.


.I 19159
.C
wheat;grain;corn;
.W
U.S. WHEAT GROWERS WANT EEP TO SOVIET UNION.
    WASHINGTON, March 6 - The U.S. National Association of
Wheat Growers (NAWG) urged the Reagan administration offer the
Soviet Union wheat under the export enhancement program (eep).
    In a letter to Agriculture Secretary Richard Lyng, NAWG
stated its "strong support" for an eep offer to Moscow.
    "We believe that a solid case continues to exist for Soviet
EEP eligibility, and the recently announced and reported Soviet
purchases of U.S. corn indicate a Soviet willingness to
purchase U.S. grain if it is competitively priced," NAWG said.
    "Consequently, we believe it is important to renew the U.S.
eep offer and do all that is reasonably possible to ensure
mutual adherence to the terms of the U.S.-Soviet grain
agreement," the letter said.


.I 19160
.C
earn
.W
ABN SAYS PROFIT RISE ENCOURAGING IN VIEW DOLLAR.
    AMSTERDAM, March 6 - Algemene Bank Nederland N.V. <ABNN.AS>
chairman Robertus Hazelhoff said the bank's 10.3 pct increase
in net 1986 profit to 527 mln guilders from 478 mln in 1985 was
encouraging in view of the sharply lower dollar.
    Hazelhoff, speaking at a press conference after the release
of ABN's 1986 results, said a sharp decrease in foreign
earnings had been compensated by a strong domestic performance,
notably in the securities business.
    He said the bank was also proposing a one for 10
share-split which should facilitate trade in the bank's stock.
    News of the split sparked a 14 guilder rise in ABN's share
price on the Amsterdam bourse to a close of 517 guilders.
    Prospects for 1987 hung on three uncertainties, namely the
future trend of the dollar, the level of interest rates and
ABN's share of equities trade, Hazelhoff said.
    Provisions for general contingencies were reduced in 1986
by 4.1 pct to 575 mln guilders, while taxes increased by 2.1
pct to 242 mln guilders, he added.
    Lower global interest rates in 1986 had nipped earnings
margins via traditional lending activities, he said.
    Hazelhoff said ABN was unlikely to continue reducing risk
provisions in the future but he noted the bank was not overly
concerned about default by Latin American debtors, a factor
which brokers say has distanced Dutch insititutions from bank
stocks recently.
    He said that of the bank's estimated 25 financially
troubled sovereign debtors, about one quarter were Latin
American countries. These would ultimately pay up, he said.
    He added that losses incurred through loans to tin
producers in the wake of the tin council crisis at end-1985 had
been written off.


.I 19161
.C
money-supply
.W
******CANADIAN MONEY SUPPLY M-1 RISES 217 MLN DLRS IN WEEK, BANK OF CANADA SAID.
Blah blah blah.

.I 19162
.C
money-supply
.W
CANADIAN MONEY SUPPLY RISES IN WEEK.
    OTTAWA, March 6 - Canadian narrowly-defined money supply
M-1 rose 217 mln dlrs to 32.80 billion dlrs in week ended
February 25, Bank of Canada said.
    M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, rose 556 mln dlrs to 75.19 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposit rose 651 mln dlrs to 176.87 billion dlrs.s
    M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, rose 992 mln dlrs to 216.03 billion dlrs.
    Chartered bank general loans outstanding rose 481 mln dlrs
to 124.99 billion dlrs.
    Canadian liquid plus short term assets fell 854 mln dlrs to
35.40 billion dlrs and total Canadian dollar major assets of
the chartered banks fell 118 mln dlrs to 221.20 billion dlrs.
    Chartered bank net foreign currency assets fell 23 mln dlrs
to minus 1.92 billion dlrs.
    Notes in circulation totalled 16.24 billion dlrs, up 76 mln
dlrs from the week before.
    Government cash balances fell 565 mln dlrs to 4.31 billion
dlrs in week ended March 4.
    Government securities outstanding rose 1.25 billion dlrs to
224.09 billion dlrs in week ended March 4, treasury bills rose
950 mln dlrs to 74.55 billion dlrs and Canada Savings Bonds
fell 57 mln dlrs to 44.34 billion dlrs.


.I 19164
.C
jobs
.W
FRENCH GOVERNMENT TO STEP UP AID TO JOBLESS.
    PARIS, March 6 - The government plans to go ahead with a
three billion franc package to help the long-term unemployed,
with the aim of guaranteeing social security payments to
everyone becoming redundant, government officials said.
    At present only about one-third of the country's 2.6 mln
jobless, corresponding to 10.9 pct of the workforce, receive
unemployment benefit.
    Prime Minister Jacques Chirac told a television
interviewer, "As soon as the law is approved, and it will be in
a matter of weeks, all workers made redundant will have the
right to social benefits."
    The money, which will be used to alleviate unemployment
through retraining or project finance, will come from a 7.5
billion franc government fund set up last month to finance
spending on special areas of concern.
    Apart from unemployment, these include relief to farmers
hit by European Community cost-cutting measures.
    French unemployment has risen by more than 40 pct from 1.8
mln when socialist President Francois Mitterrand took office in
1981.


.I 19165
.C
wheat;grain;
.W
USSR WHEAT BONUS OFFER SAID STILL UNDER DEBATE.
    WASHINGTON, March 6 - The Reagan administration continues
to debate whether to offer subsidized wheat to the Soviet
Union, but would need assurances from the Soviets that they
would buy the wheat before the subsidy offer would be made, a
senior U.S. Agriculture Department official said.
    "I think it still is under active debate whether or not it
would be advisable" to make an the export enhancement offer to
the Soviets, Thomas Kay, administrator of the department's
Foreign Agriculture Service, told Reuters.
    "We'd need some assurances from them (the Soviets) that they
would buy if offered" the wheat under the subsidy plan, he said.
Kay called reports that such an offer was imminent "premature."
    The Reagan administration's cabinet-level Economic Policy
Council is set to meet today to discuss, among other matters,
agricultural policy but is not expected to address a wheat
subsidy offer to the Soviet Union, administration officials
said earlier.


.I 19166
.C
earn
.W
SUN ELECTRIC CORP <SE> 1ST QTR JAN 31 OPER NET.
    CRYSTAL LAKE, Ill., March 6 -
    Oper shr profit nine cts vs loss seven cts
    Oper net profit 628,000 vs loss 491,000
    Sales 50.7 mln vs 41.8 mln
    Avg shrs 7,033,000 vs 6,557,000
    Note: Oper net excludes extraordinary profit of 423,000
dlrs, or six cts a shr, and 110,000 dlrs, or one ct a share,
respectively, in 1987 and 1986 quarters, from utilization of
tax loss carryforwards.


.I 19167
.C
grain;corn;
.W
CANADA CORN DECISION UNJUSTIFIED - YEUTTER.
    WASHINGTON, March 6 - U.S. trade representative Clayton
Yeutter said Canada's finding announced today that U.S. corn
imports injure Canadian farmers is "totally unjustified."
    "U.S. corn exports to Canada are so small that it is
inconceivable that they injure Canadian corn farmers by any
reasonable measure," Yeutter said in a statement.
    He said if other countries follow Canada's lead it could
result in "a rash of protectionist actions throughout the
world." French corn growers have recently indicated they will
challenge U.S. corn gluten feed shipments to Europe.
    Yeutter said the U.S. will examine the Canadian decision
closely and if the U.S. believes the decision was not based on
facts, "will carefully evaluate appropriate responses." Yeutter
did not say what steps the U.S. may take in response.


.I 19168
.C
earn
.W
CETEC CORP <CEC> 4TH QTR NET.
    EL MONTE, Calif., March 6 -
    Oper shr two cts vs eight cts
    Oper net 41,000 vs 153,000
    Sales 7,456,000 vs 7,965,000
    Year
    Oper shr 22 cts vs 50 cts
    Oper net 434,000 vs 1,103,000
    Sales 31 mln vs 33.6 mln
    Note: Current qtr and year figures exclude loss from
discontinued operations of 384,000 dlrs, or 20 cts per share.
    Prior qtr and year figures exclude losses from discontinued
operations of 1.9 mln dlrs, or 88 cts per share and 2.3 mln
dlrs, or 1.07 dlrs per share, respectively.


.I 19169
.C
earn
.W
RICHTON INTERNATIONAL CORP <RIHL> 3RD QTR JAN 31.
    NEW YORK, March 6 -
    Shr 18 cts vs 39 cts
    Net 507,000 vs 762,000
    Sales 11.3 mln vs 11.7 mln
    Avg shrs 2,789,000 vs 1,961,000
    Nine mths
    Shr 39 cts vs 90 cts
    Net 1,076,000 vs 1,752,000
    Sales 32.9 mln vs 33.3 mln
    Avg shrs 2,771,000 vs 1,955,000


.I 19170
.C
earn
.W
VALTEK INC <VALT> 3RD QTR JAN 31 NET.
    SPRINGVILLE, Utah, March 6 -
    Shr 18 cts vs 19 cts
    Net 400,413 vs 421,451
    Revs 9,343,228 vs 8,213,449
    Nine mths
    Shr 39 cts vs 46 cts
    Net 853,891 vs 1,011,999
    Revs 24.6 mln vs 22.3 mln


.I 19172
.C
earn
.W
THE WRITER CORP <WRTC> 4TH QTR LOSS.
    DENVER, March 6 -
    Shr loss 30 cts vs profit 11 cts
    Net loss 1,247,000 vs profit 454,000
    Revs 12.3 mln vs 17.5 mln
    Year
    Shr loss 24 cts vs profit 32 cts
    Net loss 979,000 vs profit 1,303,000
    Revs 60.6 mln vs 61.7 mln


.I 19174
.C
earn
.W
ROCKY MOUNTAIN MEDICAL CORP <RMEDU> 1ST QTR LOSS.
    GREENWOOD VILLAGE, Colo., March 6 - Dec 31
    Shr loss one ct
    Net loss 176,639
    Revs 150,300
    NOTE: Company went public in April 1986.


.I 19175
.C
earn
.W
FIRST AMERICAN BANK AND TRUST <FIAMA> YEAR NET.
    NORTH PALM BEACH, Fla., March 6 -
    Shr 91 cts vs 1.25 dlrs
    Net 8,710,000 vs 11.7 mln
    Avg shrs 9,526,287 vs 9,362,379
    NOTE: Share adjusted for 10 pct stock dividend in May 1986.
    Net includes loan loss provisions of 12.7 mln dlrs vs
2,400,000 dlrs.


.I 19178
.C
sugar
.W
INDIA AGAIN IN MARKET FOR SUGAR - TRADE.
    LONDON, March 6 - India has called a fresh buying tender
for up to four 13,000 tonne cargoes of white sugar on March 11,
traders here said.
    The tender calls for one cargo of prompt sugar and two to
three with March/April shipment sugar, or the same as the eight
cargoes bought at a tender two days ago. That tender originally
only sought two to three cargoes but resulted in the sale of
eight. India also granted the sellers options to sell twice
that amount at the same price but for April/May shipment.
    Depending on prices, traders said it would be likely for
India again to buy more than the tonnage formally sought.


.I 19179
.C
earn
.W
<WARRANTECH CORP> 3RD QTR DEC 31 NET.
    NEW YORK, March 6 -
    Shr profit nil vs loss nil
    Net profit 28,565 vs loss 204,553
    Revs 507,529 vs 6,563
    Nine mths
    Shr loss nil vs loss nil
    Net loss 404,011 vs loss 649,495
    Revs 938,345 vs 32,535


.I 19180
.C
gold
.W
PIONEER GROUP <PIOG> UNIT GETS MORE LAND.
    BOSTON, March 6 - The Pioneer Group Inc said its 70
pct-owned Teberebie Goldfields Ltd venture has been granted an
additional concession of land in Ghana to look for and mine
gold.
    The State Gold Mining Corp of Ghana granted the venture an
additional 14.5 square kilometers in Teberebie, Ghana,
contiguous to 11.5 square kilometers granted earlier, the
company said.
    The original concession appears to have a substantial
amount of gold bearing material containing about 2 grams, or
6/100 ounces, of gold per metric ton.
    But the venture has no firm estimates on the costs of
extracting the gold and no assurances can be given that the
reserves can be mined profitably, the company said.
    It said Teberebie Goldfields has not conducted tests on the
newly granted land but added the land seems to be similar in
geological characteristics to the original land.


.I 19181
.C
acq
.W
INSITUFORM <IGLSF> RAISES STAKE IN UNIT.
    NEW YORK, March 6 - Insituform Group Ltd of Guernsey,
Channel Islands, said it has exercised an option to convert a
250,000 stg loan to affiliate Insituform Permaline Ltd to
common shares, raising its stake in the unit to 75 pct from 50
pct.
    The remainder is held by Permaline's management and an
investment group.
    Insituform also said James Colclough has resigned from its
board for health reasons and secretary Scott Saltpeter has
resigned, effective June Five.


.I 19182
.C
copper
.W
COPPER MEETING AGREES GOALS OF STUDY GROUP.
    GENEVA, March 6 - The world's major copper producing and
consuming countries have reached "a degree of consensus" on
objectives and functions of a future study group aimed at
reviewing the world copper market, officials said.
    Governments represented at a meeting to consider a proposed
forum for copper have recommended that another session be held
in September to consider further the nature of such a group, a
spokesman for the United Nations Conference on Trade and
Development (UNCTAD) said.
    The one-week meeting, which ended today, was held to
examine a U.S. Initiative to set up a copper study group.
    The new body would not aim at negotiating measures to
stabilise depressed world prices.
    Its objectives would include increasing market
transparency, through improved statistics, and undertaking
activities aimed at developing the copper market and
contributing to improvement of demand.
    UNCTAD's spokesman said, "Once they have agreed on detailed
functions and objectives, then the way will be cleared to
setting up the body."


.I 19183
.C
money-fx
.W
LIFFE FEBRUARY VOLUMES DOWN, BUT EURODOLLARS UP.
    LONDON, March 6 - Total futures and options turnover on the
London International Financial Futures Exchange (LIFFE) fell
slightly during February, although daily average Eurodollar
volume set a new record, LIFFE said today.
    Total futures and options turnover last month was 822,378
contracts, down from January's 881,778, but sharply above the
comparative February 1986 figure of 463,146 lots, it said.
    Eurodollar turnover during February was 140,417 lots,
against January's 100,941 and the year ago figure of 81,648.
The daily average was a record 7,020 lots, up four pct from the
previous record, set in March 1985.
    February trading encompassed a new daily record of 66,087
contracts on the 19th of the month, exceeding the previous
record of 61,398, which had been set on February 6, LIFFE said.
    FT-SE 100 index futures volume was sharply higher during
February, with 22,109 contracts trading, against January's
15,279 and the year-ago level of 8,181.
    Open interest also set new records last month in
Eurodollars at 29,372 contracts, in FT-SE 100 at 4,898 and in
short sterling interest rate futures at 19,846 lots.
    Key futures volumes as detailed by LIFFE were:
                 Feb'87   Jan'87    Feb'86
 Long gilt      424,865  525,354   134,420
 Eurodollar     140,417  100,941    81,648
 Short sterling  94,720   87,619    67,640
 T-bond          84,694   87,980   133,766
 FT-SE           22,109   15,279     8,181
 Currencies       2,799    2,112     7,737
 Short gilt          74       85     6,516
    Key options volumes as detailed by LIFFE were:
              Feb'87    Jan'87     Feb'86
 Long gilt     44,640    54,329     ----
 Eurodollar     3,580     1,720     2,844
 T-bond         1,737     3,479     ----
 Sterling       1,466     2,223    18,191
 FT-SE          1,277       657     ----
 Total options 52,700    62,408    23,238
    (Long gilt, T-bond and FT-SE index options were not trading
in February 1986).


.I 19185
.C
crude
.W
COLOMBIAN OIL EXPORTS NOT AFFECTED BY QUAKE.
    BOGOTA, March 6 - Colombian oil installations were not
damaged by an earthquake which shook Ecuador and southern
Colombia last night and there are no plans to suspend exports,
a spokesman for the state-run oil company Ecopetrol said.
    He said no damage was reported, unlike in Ecuador where
indefinite force majeure was declared on crude exports.
    Colombia currently produces about 360,000 barrels per day
(bpd) of crude. Exports in january totalled 123,000 bpd.
    The quake, which in Colombia measured between 6.5 and seven
on the 12-point international Mercalli scale, caused panic
among residents but no injuries were reported.


.I 19186
.C
acq
.W
CHICAGO MILWAUKEE <CHG> GREETS SHEARSON STAKE.
    CHICAGO, March 6 - Chicago Milwaukee Corp said it welcomed
an investment by Shearson Lehman Brothers Inc in its company.
    Yesterday, Shearson Lehman, a subsidiary of American
Express Co (AXP), disclosed in a Securities and Exchange
Commission filing that it holds a 5.35 pct interest in Chicago
Milwaukee.
    Chicago Milwaukee's stock edged up 2-1/8 to 138 on turnover
of 8,100 shares, as one of the biggest gainers on the NYSE. The
stock has been trading in a 154 to 128 range for the last 52
weeks.
    Edwin Jacobson, Chicago Milwaukee president, declined to
comment on movement of the company's stock but said,"From an
investment point of view, we are pleased to have Shearson,
Lehman as a substantial investor."
    Shearson, Lehman purchased the shares for investment
purposes and may continue buying shares depending on market
conditions, according to the filing.
    Chicago Milwaukee, which sold its railroad interests to Soo
Line Railroad Co (SOO) in February 1985, currently manages and
sells its real estate which consists of 28,000 parcels in 11
states.


.I 19187
.C
acq
.W
DAUPHIN DEPOSIT <DAPN> TO MAKE ACQUISITION.
    HARRISBURG, Pa., March 6 - Dauphin Deposit Corp said it has
signed a letter of intent to acquire Colonial Bancorp Inc of
New Holland, Pa., in an exchange of 3.6 to 4.4 Dauphin shares
for each colonial share, depending on the market value of
Dauphin shares just before the merger takes place.
    The company said the acquisition is subject to approval by
Colonial shareholders and regulatory authorities.  Colonial had
assets at year-end of about 150 mln dlrs.


.I 19189
.C
earn
.W
VAN DORN CO <VDC> SETS QUARTERLY.
    CLEVELAND, March 6 -
    Qtly div 27-1/2 cts vs 27-1/2 cts prior
    Pay May One
    Record April 17


.I 19190
.C
earn
.W
M.D.C. HOLDINGS INC <MDC> SETS QUARTERLY.
    DENVER, March 6 -
    Qtly div 10 cts vs 10 cts prior
    Pay March 31
    Record March 16


.I 19191
.C
earn
.W
CHUBB CORP <CB> SETS QUARTERLY.
    NEW YORK, March 6 -
    Qtly div 42 cts vs 42 cts prior
    Pay April Seven
    Record March 20


.I 19193
.C
crude
.W
CRUDE OIL PRICES UP AS STOCKS, OUTPUT FALL.
    BY TED D'AFFLISIO, Reuters
    NEW YORK, March 6 - U.S. crude oil prices rose above 18 
dlrs a barrel this week and industry analysts said the price
could rise another dollar as inventories fall.
    "OPEC is keeping its production down, and in the cash market
there is tight supply of crude with short transportation time
to major refining centers," said Daniel McKinley, oil analyst
with Smith Barney, Harris Upham and Co. "That could send prices
50 cts to a dollar higher," he added.
    The U.S. benchmark crude West Texas Intermediate rose to
18.15 dlrs a barrel today, a rise of 1.50 dlrs this week.
    The rally in oil prices this week came after prices fell in
February more than two dlrs from its high of 18.25 dlrs a
barrel.
    "Oil traders were pulling prices down on the assumption that
oil stocks were building and OPEC was producing well above its
15.8 mln bpd quota, but now both of those assumptions have come
under question," McKinley said.
    Yesterday the International Energy Agency in its monthly
report said that oil stocks in the OECD area, or in
industrialized nations, were drawn down by 1.3 mln bpd during
the first quarter of this year.
    IEA estimates that the draw in oil stocks during the first
quarter of this year will come largely from oil companies whose
inventory levels by April one will be an estimated 326 mln
tonnes, or about 74 days consumption.
    Industry analysts also said the estimate of a 3.5 mln bpd
draw in stocks made by Shell Chairman Peter Holmes yesterday
fed speculation that other major companies were destocking.
    Traders said the destocking has come about as a result of a
so-called buyers strike, which kept refiners from buying
officially priced OPEC oil in an effort to get the organization
to offer discounts to the official price.
    "This struggle between the companies and OPEC is the
ultimate game of chicken but it will be resolved relatively
soon. I would imagine by about the middle of the month (March),"
the general trading manager of an international oil company
told Reuters in a telephone interview.
    For its part OPEC has moved to win this game by cutting
excess supplies from the market by a reduction of its own
output, traders said. A Reuter survey estimates OPEC output to
be 14.7 mln bpd this week.
    Also, an earthquake in Ecuador yesterday led it to suspend
oil exports indefintiely and force majeure its shipments.
    "This will reduce short-haul availabilities by about 250,000
bpd almost immediately and the longer the suspension continues,
the larger the draw in stocks will be for companies expecting
it to be there," McKinley said.
    International oil traders said that other short-haul
crudes, such as North Sea Brent, were also scarce because Asian
refiners bought the oil after absorbing a lot of the readily
available Mideast crudes earlier this week.
    If this pattern continues then oil companies will bid up
the price of oil as they purchase for their refineries, trading
managers at several companies told Reuters.
    But there were skeptics who said they wondered how long
OPEC can retain its unity if buyer resistance continues.
    Stephen Hanke, chief economist at Friedburg Commodity
Management, said OPEC production was lower "because of the
Saudi cut (to 3.1 mln bpd) and this could spell trouble if it
gives other members an incentive to exceed their quotas."
     He added, "The Saudis will be picking up the tab for other
members who produce over their quota, and the drain on the
Saudis will continue, forcing them to cut output maybe as low
as 2.5 mln bpd to support the 18 dlrs average price," he added.
    There are also signs of some OPEC crudes being sold in the
spot market at below OPEC official prices, traders said.
    Oil traders said Nigerian Brass River sold for delivery
into the U.S. Gulf at a price related to North Sea brent, which
traded this week at 17.60 dlrs, far below the official price of
18.92 dlrs for the similar quality Bonny Light.
    Iranian oil is also surfacing in the U.S. Gulf and the Far
East at reported discounts to its 17.50 dlrs official price.
    "There is a lot of oil priced on government-to-government
deals, which are below official prices and this is probably
being resold," one international trader said.


.I 19195
.C
grain;sugar;corn;
.W
MGE PLANNING APRIL 6 START UP OF HFCS CONTRACT.
    MINNEAPOLIS, March 6 - The Minneapolis Grain Exchange (MGE)
will start trading futures contracts in high fructose corn
syrup on April 6 if the Commodity Futures Trading Commission
(CFTC) approves the contract as expected next week.
    Pat Henderson, spokesperson for the MGE, said the exchange
expects contract approval at CFTC's Tuesday meeting. It has
been under review since the exchange submitted the proposal in
December, 1985.
    The proposed contract is based on 48,000 pound lots of
55-pct high fructose corn syrup, the equivalent of one tank
truck of the sweetening agent derived from corn in the wet
milling process. The syrup, commonly called HFCS-55, is most
commonly used as a sweetener in soft drinks and other
beverages.
    Delivery would be by shipping certificate from production
facilities designated by the exchange. The contract, designated
by the symbol "HF," would trade from 0900 to 1315 CST. Months
traded would correspond with the Chicago corn futures months of
March, May, July, September and December.
    Contract price will be quoted per hundred weight, with a
minimum price fluctuation of one cent and maximum fluctuation
of one dlr per CWT.
    "We hope the producers and users of fructose will be
actively involved, those producers being the large processors,
the corn wet millers, and the users being the beverage
bottlers," Henderson said. "But there are potentials for all
types of people to use it. There is quite a list of industries
that utilize fructose."


.I 19197
.C
earn
.W
FIRST FEDERAL BROOKSVILLE <FFBV> SETS QUARTERLY.
    BROOKSVILLE, Fla., March 6 -
    Qtly div four cts vs four cts prior
    Pay March 31
    Record March 20
    NOTE: First Federal Savings and Loan Association of
Brooksville.


.I 19199
.C
earn
.W
ALUMINUM CO OF AMERICA <AA> REGULAR DIVIDEND.
    PITTSBURGH, March 6 -
    Qtly div 30 cts vs 30 cts in prior qtr
    Payable May 25
    Record May one


.I 19200
.C
gold;copper;platinum;nickel;palladium;
.W
<TECHNIGEN PLATINUM CORP> IN METALS FIND.
    VANCOUVER, March 6 - Technigen Platinum corp said it
initial results of a 13-hole drilling program on its R.M. Nicel
platinum property in Rouyn-Noranda, Quebec, indicate
"extensive" near-surface zones "highly" enriched in gold,
platinum and palladium were found in rocks on the periphery of
a sulphide deposit.
    It said values of up to 0.073 ounce of platinum, 0.206
ounce palladium, three pct copper and 4.5 pct nickel were found
over a drill section of 13 feet.
                  
 More

.I 19201
.C
acq
.W
SIEMENS WANTS TO AMEND TELECOM PLUS <TELE> PACT.
    BOCA RATON, Fla., March 6 - Telecom Plus International Inc
said <Siemens AG>'s Siemens Information Systems wants to amend
its agreement to purchase Telecom's 65 pct interest in Tel Plus
Communications to delay payment of 25 mln dlrs for 11 months.
    Telecom's shareholders are scheduled to vote on the 165 mln
dlr transaction Monday.
    Telecom said it advised Siemens it intends to close the
transaction on March 16, as scheduled, if it is approved by
shareholders. A spokesman said this means Telecom will decide
before the 16th whether or not to accept the proposed change.
    Explaining its request for the amendment, Siemens informed
Telecom it had recently become aware of information causing
concern with respect to certain accounting and other matters.
    Siemens said it will therefore need to continue its review
beyond March 16 to determine whether certain representations
and warranties are true.
    Telecom said it advised Siemens it knows of no information
which would make its representations and warranties untrue.
    Siemens already owns the remaining 35 pct of Tel Plus. The
65 pct represenmts Telecom's principal operating asset.
    A Telecom spokesman said the agreement calls for payment of
all but 29 mln dlrs of the price at closing. Of this, 21 mln
dlrs was to be paid 11 months later and two mln dlrs per year
on the anniversary date of the transaction.
    He said Siemens is now proposing that 25 mln dlrs be added
to the 21 mln dlrs to be paid in 11 months.
    Telecom said the proposed amendment would also permit
Siemens to defer repayment of up to an additional 50 pct of
certain intercompany debt until completion of the review.
Telecom said it estimates this to ba about 15 mln dlrs.


.I 19202
.C
acq
.W
******LUCKY STORES SAYS IT AND INVESTOR EDELMAN REACHED STANDSTILL AGREEMENT.
Blah blah blah.

.I 19203
.C
gold
.W
PIONEER GROUP UNIT GETS MORE GHANA GOLD LAND.
    BOSTON, March 6 - The Pioneer Group Inc said its 70
pct-owned Teberebie Goldfields Ltd venture was granted an
additional concession of land in Ghana to seek and mine gold.
    The State Gold Mining Corp of Ghana granted the venture an
additional 14.5 square kilometers in Teberebie, Ghana,
contiguous to 11.5 square kilometers granted earlier.
    The original concession appears to have a substantial
amount of gold bearing material containing about 2 grams, or
6/100 ounces, of gold per tonne. But the venture has no firm
estimate on the costs of extracting the gold and no assurances
can be given that the reserves can be mined profitably, the
company said. It said Teberebie Goldfields has not conducted
tests on the newly granted land but added the land seems to be
similar in geological characteristics to the original land.


.I 19205
.C
earn
.W
INTERNATIONAL MULTIFOODS CORP <IMC> DIVIDEND.
    MINNEAPOLIS, March 6 -
    Qtly div 29-1/2 cts vs 29-1/2 cts prior
    Pay April 15
    Record March 27


.I 19207
.C
earn
.W
HADSON CORP <HADS> 4TH QTR NET.
    OKLAHOMA CITY, March 6 -
    Shr profit four cts vs loss 99 cts
    Net profit 545,000 vs loss 13.1 mln
    Revs 75.3 mln vs 37.9 mln
    Avg shrs 14.8 mln vs 13.1 mln
    Year
    Shr profit 34 cts vs profit 34 cts
    Net profit 4,908,000 vs profit 4,487,000
    Revs 216.8 mln vs 117.7 mln
    Avg shrs 14.6 mln vs 13.1 mln
    NOTE: 1985 net included gain on sale of foreign properties
of 15.5 mln dlrs or 1.19 dlrs per share and a writedown of oil
and gas properties of 12.5 mln dlrs or 96 cts per share. 1985
4th qtr net included writedowns of oil and gas properties.


.I 19209
.C
acq
.W
LUCKY STORES <LKS>, EDELMAN IN STANDSTILL PACT.
    DUBLIN, Calif., March 6 - Lucky Stores Inc said it and
investor Asher Edelman agreed on a settlement that prohibits
Edelman and his group from taking specified actions to obtain
control of the company and that limits the Edelman group's
ownership of Lucky's stock to less than five pct of any voting
securities.
    The arrangement also provides for the dismissal of pending
litigation between the parties, Lucky Stores said.
    The settlement also calls for the withdrawal of Edelman's
motion to intervene in pending shareholder actions against
Lucky Stores and its directors, the company said.
    In addition, the standstill provisions also apply to
Hancock Fabrics after it is spun off to Lucky stockholders, the
company said.
    Lucky Stores said the arrangement also calls for the
company to submit to stockholders at a special meeting set for
December 31 a proposal from Edelman seeking their views
concerning repeal of a charter provision that limits the voting
power of substantial Lucky stockholders.
    Edelman, who owns about five pct of Lucky Stores' stock,
last year was rebuffed in his effort to acquire the company.
    Last October Lucky Stores implimented a restructuring
program that included the repurchase of 28 pct of its own
common shares and reincorporation in Delaware.
    The spinoff of Hancock Textile Co, a chain of 324 retail
stores, was one of the key parts of the restructuring program.
    Edelman and his Plaza Securities Co partnership
subsequently sued in an attempt to block the proposed
reincorporation, which was a condition of the repurchase and
restructuring plan.
    Under this latest arrangement, Lucky Stores said it agreed
to reimburse the Edelman group for 2.8 mln dlrs of
out-of-pocket expenses, which include litigation and other
costs.
    "This agreement serves the interests of Lucky stockholders
by avoiding the significant cost of continued litigation and
the accompanying demands on management time," Lucky Stores
chairman John Lillie said in a statement.


.I 19210
.C
earn
.W
ATT <T> PHONE PROPOSAL TO HELP PROFITS.
    By Samuel Fromartz, Reuters
    NEW YORK, March 6 - American Telephone and Telegraph Co's
proposal to deregulate its long distance phone service is
unlikely to produce a radical change in phone rates, but it
should help the company's profits, analysts said.
    "Deregulation will mean more pricing discounts for large
volume users, but status quo for residential users," said
PaineWebber Group analyst Jack Grubman.
    But the proposals will scrap the pricing formula that has
constrained the company's profits in the long distance
business, leading to higher profit margins, analysts said.
    ATT has long pushed for deregulation of its long-distance
business, the profits of which have been limited by a regulated
rate-of-return on the company's investments. The rate was cut
last year to 12.20 from 12.75 pct.
    Earlier today the company proposed to the Federal
Communications Commission to scrap the formula, cut the amount
of time needed to approve rate proposals, and leave it up to
its competitors to oppose it filings.
    MCI Communications Corp <MCIC> made a similar filing
yesterday, saying greater the moves would increase competition
in the telephone business.
    Analysts said the proposals will allow ATT to cut costs in
the long-distance unit, and increase its profit margins
previously constrained by the rate of return. But many said
they did not expect the proposals to lead to higher prices in
the industry, simply because of the competition the phone
industry giant faces.
    "You probably wouldn't see as much of a price decline,"
said Gartner Group analyst Fritz Ringling. "But you wouldn't
see a rise." Grubman said the proposals will allow ATT to
selectively raise or lower prices, depending on the market. "It
will give ATT a lot more flexibility," he said.
    ATT now faces a period of comment in which a number of
companies will be able to respond to the proposals in FCC
hearings.
    It may face at least one strong opponent, U.S. Sprint, the
long distance joint venture between GTE Corp <GTE> and United
Telecommunications Inc <UT>.
    "We think the Congress of the FCC should establish a
reasonable rate of return. Someone should establish it," a U.S.
Sprint spokesman said. But he added the company was not opposed
to greater competition.
    It may also take some time for the proposals to go through,
and in the process they may be altered by the various
constituencies affected by the move.
    "There's so much complexity, so much inertia, so much
bureacracy, that stricly speaking about the mechanisms, it
won't happen that fast," said analyst Victor Krueger of the
Gartner Group.


.I 19211
.C
lumber
.W
CME SETS MAY 29 START FOR LUMBER FUTURES OPTIONS.
    CHICAGO, March 6 - The Chicago Mercantile Exchange (CME)
board of governors announced today the options on Random Length
lumber futures will begin trading on May 29.
    The contract received Commodity Futures Trading Commission
(CFTC) approval on January 21 after being submitted for review
last October 13.
    Initially, only January, March and May delivery months will
be listed for trading. The size of the underlying futures
contract is 130,000 board feet. Regular trading hours for the
contract will be from 0900 to 1305 Central Time. However, on
the first day of trading the market will open at 1000.
    On March 4 the CME board amended the contract to eliminate
Christmas Eve expirations for the January option. This
amendment has been submited to the CFTC, the CME said.


.I 19212
.C
acq
.W
******TWA CONFIRMS OWNERSHIP OF 15 PCT OF USAIR GROUP.
Blah blah blah.

.I 19215
.C
earn
.W
STRUTHERS WELLS <SUW> SEES 1986 NOV 30 LOSS.
    WARREN, Pa., March 6 - Struthers Wells Corp said it expects
to report a loss, without tax benefit, of about 16 mln dlrs for
the fiscal year ended November 30, 1986, versus a profit of
295,000 dlrs in fiscal 1985.
    The company added, however, that about 13.6 mln dlrs of the
loss relates to discontinued operations and disposal of
subsidiaries.
    The company said the loss is part of its previously
announced restructuring that includes the sale of its foreign
and domestic units.
    Struthers added that it has filed with the Securities and
Exchange Commission for an extension to file its annual report
on form 10-K as a result of delays caused by the restructuring.


.I 19216
.C
acq
.W
******SOROS GROUP TELLS SEC IT MAY BUY UP TO 49.9 PCT OF FAIRCHILD INDUSTRIES.
Blah blah blah.

.I 19217
.C
acq
.W
TWA <TWA> CONFIRMS OWNERSHIP OF USAIR <U> STOCK.
    NEW YORK, March 6 - Trans World Airlines Inc said it owns
more than four mln USAir Group shares or about 15 pct of the
total outstanding.
    TWA said it may acquire additional shares in the open
market, in private transactions, through a tender offer or
otherwise, subject to Department of Transportation approval.
    TWA has offered 52 dlrs per share for USAir Group. USAir
rejected the offer yesterday, calling it a last-minute attempt
to interfere with its takeover of Piedmont Aviation Inc.
    A TWA spokesman said the company has filed an application
for approval on its offer to buy USAir with the Department of
Transportation, and later today it will file a response to
USAir's motion with the DOT to dismiss the TWA application.
    TWA said it made the statement today on its stock position
in USAir in response to inquiries.
    Traders said they believed TWA Chairman Carl Icahn was the
buyer of an 855,000 share block crossed today by Salomon
Brothers.
    USAir stock was trading at 50-3/4, up 2-1/4 on heavy volume
of 3.1 mln shares. TWA stock fell 3/8 to 30-5/8.
    While analysts and arbitragers have speculated that Icahn
may have made the offer for USAir in order to trigger the
acquisition of his own airline, Wall Street today began to take
Icahn's effort more seriously.
    "I think he's going to be the next Frank Lorenzo of Wall
Street," said one market source. Lorenzo, chairman of Texas
Air, has added to his airline with the acquisitions of Eastern
Airlines and People Express Airlines.
    There was also speculation that Icahn would like to buy
USAir and then sell TWA as a merged company.


.I 19218
.C
earn
.W
SILVER STATE MINING <SSMC> CORRECTS NET.
    DENVER, March 6 - Silver State Mining Corp said it has
corrected its 1986 fourth quarter net income to 485,380 dlrs
from 528,790 dlrs reported earlier today.
    The company earned 286,969 dlrs in last year's fourth
quarter.


.I 19219
.C
earn
.W
******STEWART-WARNER CORP 4TH QTR SHR LOSS 3.86 DLRS VS PROFIT 37 CTS.
Blah blah blah.

.I 19220
.C
acq
.W
GROUP TO BOOST FAIRCHILD INDUSTRIES (FEN) STAKE.
    WASHINGTON, March 6 - An investor group led by New York
investor George Soros said it was dissatisfied with Fairchild
Industries Inc management and was considering boosting its
holdings to as much as 49.9 pct of the aerospace and aviation
company's outstanding stock.
    The group already controls 1,647,481 Fairchild Industries
shares or 11.5 pct of the total outstanding.
    The group said it filed on Wednesday with federal antitrust
regulators for advance clearance to buy enough additional
shares to increase its total stake to up to 49.9 pct of the
total outstanding stock.
    The group said its representatives had met with Fairchild
Industries officials to inform them "that they do not believe
management has been successful in enhancing or protecting
shareholder values."
    It said it was considering the additional share purchases
to enable it to "assert a greater degree of influence over the
future management and policies of the issuer."
    It said a decision on the specific level of share ownership
it would seek depended on market prices, future changes in
management policies, available financial resources and other
factors.
    The group said it also reserved the right to pursue other
measures intended to influence Fairchild management and
policies, either alone or in concert with other investors.
    The group includes Soros and Quantum Fund, an offshore
investment firm headquartered in Curacao, Netherlands Antilles
that is advised by Soros.
    The group said that since its last SEC filing, made Jan. 2,
it had purchased no additional Fairchild shares and had sold
6,700 shares on the New York Stock Exchange Jan. 19.
    A Fairchild Industries official later said Soros had told
the company he was not dissatisfied with its management.
    "Contrary to the filing, Mr. Soros has told the company
today that he is not dissatisfied with management," Fairchild's
Bill Fulwider told Reuters.
    However, Fulwider said the company would have nothing to
say at this time about Soros' disclosure that he may buy up
enough additional Fairchild shares to hold as much as 49.9 pct
of the company's outstanding stock.


.I 19221
.C
earn
.W
PAYLESS CASHWAYS <PCI> SEES BETTER FIRST QTR.
    NEW YORK, March 6 - Payless Cashways Inc chairman David
Stanley told analysts the company's first quarter results to be
reported March 17 will be better than the seven cts per share
reported in the year ago quarter.
    "It was not a wonderful sales quarter, but it only
represents 14 pct of the year's total results," Stanley said.
    Stanley also said that 1987 full year sales will be in
excess of 1.8 billion dlrs as compared to the 1.5 billion dlrs
reported in 1986. He also said that analysts' estimates of 1.55
dlr per shr for 1987 "are not crazy."
    Payless reported net income of 1.22 dlr per share in 1986.
    "The economy may not get a lot better, but we expect our
advantages in the lumber industry and cost cutting measures to
keep us competitive," Larry Kunz, chief financial officer,
said.
     The company acquired Knox Lumber Co for about 24.3 mln
dlrs in October 1986.
    Stanley said the company's stronger-than-optimal balance
sheet will enable it to make further acquisitions but no
negotiations are going on at the current time.
    He said some benefits of a new management information
system will be felt in 1987 and more substantially in 1988.
   
REUTER...^M

.I 19224
.C
earn
.W
STEWART-WARNER CORP <STX> 4TH QTR LOSS.
    CHICAGO, March 6 -
    Shr loss 3.86 dlrs vs profit 37 cts
    Net loss 24,973,000 vs profit 2,389,000
    Sales 62.5 mln vs 65.3 mln
    Year
    Shr loss 3.22 dlrs vs profit 1.32 dlrs
    Net loss 20,861,000 vs profit 8,515,000
    Sales 268.0 mln vs 272.7 mln
    NOTE: 1986 earnings include a provision for restructuring
costs of 23,675,000 dlrs, or 3.66 dlrs a share (pre-tax) and
the effect of adoption of FASB 87 which reduced pension expense
by 617,000 dlrs for the quarter and 1,817,000 dlrs for the year
before taxes
    Earnings include nonoperating income from the effect of
nonrecurring gains of 1,811,000 dlrs in the 1st Qtr of 1986
from the sale of its minority interest in Plexus Corp and
1,480,000 dlrs in the 3rd Qtr of 1985 related to the sale of
excess property


.I 19225
.C
earn
.W
MONITERM CORP <MTRM> 4TH QTR LOSS.
    MINNETONKA, Minn., March 6 -
    Shr loss 15 cts vs loss 11 cts
    Net loss 632,000 vs loss 437,000
    Revs 3,206,000 vs 2,650,000
    Year
    Shr loss 19 cts vs loss 24 cts
    Net loss 793,000 vs loss 1,004,000
    Revs 11.5 mln vs 14.4 mln
    NOTE: Prior year figures restated to reflect merger in
March 1986 with Amtron Corp.


.I 19227
.C
earn
.W
THE CHUBB CORP <CB> SETS QTRLY PAYOUT.
    WARREN, N.J., March 6 -
    Qtrly 42 cts vs 42 cts prior
    Pay April 7
    Record March 20


.I 19228
.C
acq
.W
SOUTHTRUST <SOTR> TO ACQUIRE FOUR BANKS.
    BIRMINGHAM, Ala., March 6 - SouthTrust Corp, a 5.1 billion
dlr multibank holding company, said it entered into agreements
to acquire four Florida banks with assets totalling more than
233.2 mln dlrs.
    Terms of the agreements were not disclosed.
    The four banks are: Central Bank of Volusia County, with
assets of 59.3 mln dlrs, Bank of Pensacola with assets of 63.8
mln dlrs, and Vista Bank, which operates Vista Bank of Volusia
County with assets of 37.8 mln dlrs and Vista Bank of Marion
County with assets of 72.3 mln dlrs.
    It said the agreements are subject to regulatory approval.


.I 19229
.C
acq
.W
******CARLING O'KEEFE SELLS STAR OIL UNIT TO UNITED COAL CANADA FOR 57 MLN DLRS.
Blah blah blah.

.I 19231
.C
acq
.W
HUGHES TOOL <HT> UP ON MERGER SPECULATION.
    NEW YORK, March 6 - Hughes Tool Co rose one to 12-1/4 on
1,658,000 shares, apparently reflecting a belief that Baker
International Corp <BKO> will be able to persaude Hughes to go
along with a previously announced merger, analysts said.
    This week Hughes seemed to back out of the merger but then
said it was still interested in talking.
    "It sounds like Baker wants it and if people are convinced
a deal is going to go through the stock goes up," said analyst
Phil Pace of Kidder, Peabody and Co. Holders of Hughes would
get 0.8 share of Baker for each Hughes share. 


.I 19233
.C
acq
.W
AETNA <AET> REACHES AGREEMENT TO BUY COMPANY.
    HARTFORD, Conn., March 6 - Aetna Life and Casualty Co said
it reached an agreement to acquire a 49 pct interest in
Universal Life and General Insurance Sdn Bhd <ULG>, a Malaysian
composite insurance company.
    The company said the 51 pct balance will continue to be
owned by Malaysia Apera Group of private investors.
    The transaction is valued at approximately 37.8 mln dlrs
and is expected to be completed by March 31, 1987.


.I 19236
.C
acq
.W
CARLING O'KEEFE<CKB> SELLS OIL UNIT, TAKES GAIN.
    TORONTO, March 6 - Carling O'Keefe Ltd said it sold its
Star Oil and Gas Ltd unit to United Coal (Canada) Ltd for about
57 mln dlrs cash.
    Carling said it will record an extraordinary gain of about
two mln dlrs after tax, or nine cts a common share resulting
from the sale.
    The company did not elaborate further on financial terms.
    A Carling official later said in reply to an inquiry that
Carling would record the extraordinary gain in its fourth
quarter ending March 31.
    The move came after Carling's 50 pct-owner <Rothmans Inc>
agreed last week to sell its Carling stake to <Elders IXL Ltd>,
of Australia, for 196.2 mln Canadian dlrs.


.I 19237
.C
ship
.W
CHANNEL FERRY REPORTED SINKING OFF BELGIUM.
    VLISSINGEN, Netherlands, March 6 - The channel ferry Herald
of Free Enterprise from the British Townsend Thorensen company
was sinking off the Belgian coast tonight with 463 people on
board, the Dutch newsagency ANP reported today.
    An unspecified number of people had fallen into the water,
it said, quoting the pilot organisation in this south-western
Dutch port city near the Belgian border.
    It said the vessel had capsized after a collision but gave
no more details.
    Dan Kaakebeen a spokesman for the Dutch salvage firm Smit
International told Reuters by telephone from Rotterdam that the
vessel was just off the Belgian port of Zeebrugge with 463
passengers and crew when the accident occurred at 1850 GMT.
    Kaakebeen said the firm had one vessel at the scene and
another on its way with divers on board.
    A spokesman at the port authority of nearby Vlissingen said
attempts were being made to pull the vessel into shallow
waters.
    Weather conditions were good with no fog or wind, and there
were many other vessels in the area.


.I 19238
.C
earn
.W
PATRICK PETROLEUM CO <PPC> YEAR LOSS.
    JACKSON, Mich., March 6 -
    Shr loss 1.22 dlrs vs profit 27 cts
    Net loss 8,812,432 vs profit 1,847,560
    Revs 7,981,198 vs 10.3 mln
    Avg shrs 7,187,941 vs 6,828,368
    NOTE: Current year includes tax credit of 800,000 dlrs.


.I 19243
.C
earn
.W
EPITOPE INC <EPTO> 1ST QTR DEC 31 LOSS.
    BEAVERTON, Ore., March 6 -
    Shr loss 24 cts vs loss nine cts
    Net loss 216,697 vs loss 47,344
    Sales 144,403 vs 118,391



.I 19244
.C
earn
.W
<CLARY CORP> 4TH QTR DEC 31 LOSS.
    SAN GABRIEL, Calif., March 6 -
    Shr loss 12 cts vs loss 16 cts
    Net loss 214,000 vs 309,000
    Revs 3,056,000 vs 2,545,000
    Year
    Shr loss 43 cts vs loss nine cts
    Net loss 754,000 vs loss 159,000
    Revs 11.4 mln vs 11.4 mln


.I 19245
.C
earn
.W
LLOYDS BANK CANADA 1ST QTR PROFIT RISES SHARPLY.
    TORONTO, March 6 - Lloyds Bank Canada, a unit of <Lloyds
Bank International PLC>, said net profit soared to 3,053,000
dlrs for the first quarter ended January 31 from 9,000 dlrs a
year earlier.
    Loan loss provisions, a mandatory five-year averaging of
actual loan losses, also rose in the first quarter to 6,375,000
dlrs from year-ago 113,000 dlrs, the bank said.
    Lloyds Bank Canada became Canada's largest foreign bank
last autumn with its 200 mln Canadian dlr acquisition of
Continental Bank of Canada.



.I 19246
.C
ship;gas;
.W
BRAZIL STRIKES CAUSE GOVERNMENT MAJOR PROBLEMS.
    By Stephen Powell, Reuters
    SAO PAULO, Brazil, March 6 - Strikes by Brazil's 40,000
seamen and by petrol station owners in four states are causing
major headaches to a government already wrestling with a debt
crisis.
    A week ago seamen began their first national strike for 25
years and union leaders say they have seriously affected
Brazilian exports by making idle 160 ships.
    On February 20 the Brazilian government suspended interest
payments on part of its huge foreign debt following a sharp
deterioration in its trade balance.
    Today the government faced a fresh problem, when most
petrol station owners in Sao Paulo, the country's industrial
heartland, and in three other states closed down to press for
higher fuel prices.
    There were fears that the combination of the two stoppages
could lead to a serious fuel shortage.
    The seamen's leaders say their strike has halted 48 of the
72 ships belonging to the state oil company Petrobras.
    The Jornal do Brasil newspaper, in an editorial today
entitled "Dangerous Confrontation," said: "From the economic
point of view the seamen's strike carries an alarming cost,
with grave consequences for the supply situation and for the
country's external trade."
    The seamen are seeking a 275 pct pay rise and have rejected
offers of up to 100 pct.
    Later today the Higher Labour Tribunal in Brasilia is due
to rule on whether the seamen's strike is legal. But a senior
official of the National Merchant Marine Union, Jorge Luis Leao
Franco, told Reuters that the strike would continue regardless
of the tribunal's ruling.
    Labour unrest has worsened in Brazil following the collapse
over the last few months of the government's Cruzado Plan price
freeze. Prices have been rising at about 15 pct a month. Not
only workers but also businessmen are restive. Petrol station
owners said many garages had closed indefinitely today in Sao
Paulo, Parana, Mato Grosso and Mato Grosso do Sul.
    Television reports said that in the Parana state capital of
Curitiba petrol stations were only supplying fuel for
exceptional cases such as ambulances and funeral processions.
    Brazilian garage owners want to be allowed to raise their
profits on alcohol fuel and petrol sales to 1.26 cruzados (six
U.S. Cents) a litre from 0.56 cruzados (about 2.5 cents).
    Queues formed at petrol stations in Sao Paulo late last
night as motorists filled up their tanks while they still
could.
    Political sources said the government of President Jose
Sarney was closely following the strikes and the overall fuel
supply situation.


.I 19251
.C
acq
.W
DOME PETE<DMP> SAID TO BE PRESSED TO SELL ENCOR.
    By Larry Welsh, Reuters
    TORONTO, March 6 - Dome Petroleum Ltd is under pressure
from one of its largest creditors, <Canadian Imperial Bank of
Commerce>, to sell its 42 pct stake in <Encor Energy Corp Ltd>,
energy industry analysts said.
    Dome has pledged its 42.5 mln Encor shares as security for
part of its debt to Commerce Bank, estimated last year at 947
mln Canadian dlrs, and the bank wants Dome to sell the stock to
pay down debt, analysts said.
    "The Commerce has been slowly but surely moving Encor in the
direction that might make it a saleable asset," said one analyst
who asked not to be named.
    Dome earlier said it was not considering selling Encor
Energy, but reaffirmed the company's 23.3 pct interest in
Canadian gold producer Dome Mines Ltd <DM> is up for sale "at
the right price."
    Dome, now negotiating a plan to restructure more than 6.10
billion dlrs in debt, sees Encor as a strategic investment that
it does not intend to sell, spokesman David Annesley said. The
Encor shares do not pay dividends.
    A Commerce Bank spokesman also declined comment when asked
whether it is pressing Dome to sell its Encor stake.
    At current market prices, Dome's stake in Encor would be
valued at about 308 mln dlrs, while its 20.9 mln Dome Mines
shares would be worth about 319 mln dlrs.
    Recent strength in the price of Encor shares may also
prompt Commerce Bank to press Dome to divest its holding in the
Canadian oil and gas producer, analysts said.
    "Encor's stock price has improved quite substantially in
recent weeks with a runup in crude prices," Peters and Co Ltd
oil analyst Wilf Gobert commented.
    "The possibility is that Commerce Bank would like to see it
sold at these levels because they can get more for it now than
they have been able to in recent years," he added.
    Encor traded earlier on the Toronto Stock Exchange at
7-1/8, near its 52-week high of 7-1/2 and up from around six
dlrs in early February.
    The company also recently set up its own operating
management, which was previously carried out by Dome Petroleum,
Maison Placements Canada Inc analyst Denis Mote commented.
    Dome and Encor "are actually going to get farther apart. So
(the sale) does make a lot of sense," Mote said.
    However, analysts said Dome will resist any moves to divest
Encor in favor of retaining the operating assets since sale
proceeds would likely go directly to pay down Dome's debt to
Commerce Bank.
    "I think they'll probably try to hang onto Encor as long as
they can," said Bache Securities Inc analyst Doug Weber.
    Some of Dome's group of 56 major creditors might move to
block such a sale, arguing they have a claim on company assets.
    "Other creditors generally all want to make sure that
something they might be able to get a piece of is not being
sold out from under them," said analyst Gobert.
    Another stumbling block would be Encor's 225 mln dlr joint
liability in loans to Dome Petroleum advanced by Arctic
Petroleum Corp of Japan for Beaufort Sea exploration.
    Analysts said a similar hurdle could also hinder the
possible sale of Dome Petroleum's interest in Dome Mines.
    Dome Mines has guaranteed 225 mln dlrs of Dome Petroleum's
debt and has a "right of consent" to the sale of Dome Petroleum's
holding.
    Presumably, a potential buyer of the Dome Mines shares
would seek some type of relief on the company's debt
obligations connected with Dome Petroleum, Gobert said.
    Dome spokesman Annesley earlier declined to specify at what
price the company would consider selling its Dome Mines shares,
but said current prices of more than 15 dlrs a share "are very
attractive."


.I 19252
.C
earn
.W
PATRICK PETROLEUM CO <PPC> 4TH QTR NET.
    JACKSON, Mich., March 6 -
    Shr nil vs one ct
    Net 59,608 vs 95,909
    Revs 2,921,629 vs 2,918,682
    Avg shrs 7,062,172 vs 7,273,020
    Year
    Shr loss 1.22 dlrs vs profit 27 cts
    Net loss 8,812,432 vs profit 1,847,560
    Revs 3,070,327 vs 3,195,710
    Avg shrs 7,187,941 vs 6,828,368


.I 19254
.C
earn
.W
INLAND VACUUM INDUSTRIES INC <IVAC> 1ST QTR NET.
    UPPER SADDLE RIVER, N.J., March 6 - Qtr ends Jan 31
    Shr six cts vs eight cts
    Net 103,436 dlrs vs 134,360 dlrs
    Revs 1,762,270 vs 1,282,463


.I 19256
.C
crude
.W
IRANIAN OIL MINISTER ARRIVES IN ALGERIA.
    ALGIERS, March 6 - Iranian Oil Minister Gholamreza Aqazadeh
arrived in Algiers at the head of a large delegation for talks
on stabilizing oil prices, the official news agency APS said.
    In a brief arrival statement, he said Iran and Algeria were
engaged in "continuous and stronger cooperation" on the world
petroleum market and had "deployed considerable efforts to
stablise petroleum prices."
    He was greeted on arrival by Belkacem Nabi, the Algerian
Minister of Energy, Chemical and Petro-Chemical Industries.


.I 19257
.C
earn
.W
DEL LABORATORIES INC <DLI> 4TH QTR NET.
    FARMINGDALE, N.Y., March 6 -
    Shr 16 cts vs 55 cts
    Net 232,000 vs 814,000
    Revs 22.4 mln vs 22 mln
    Year
    Shr 2.07 dlrs vs 2.43 dlrs
    Net 3,108,000 vs 3,670,000
    Revs 106.7 mln vs 101.1 mln
    NOTE: Per share figures adjusted to reflect four-for-three
stock split paid March 26, 1986.


.I 19261
.C
gnp
.W
CHILEAN GDP UP 5.7 PCT IN 1986, CENTRAL BANK SAYS.
    Santiago, march 6 - chile's gross domestic product rose 5.7
pct last year to 18.8 billion dollars, compared to a 2.4 pct
rise in the previous year, the central bank said.
    It said initial projections were for a 4.6 pct increase in
gdp this year.
    The sectors which registered the greatest growth in 1986
were fisheries with 10 pct, agriculture at 8.7 pct, transport
and communications with 8.1 pct and industry at 8.0 pct, the
bank added.


.I 19265
.C
acq
.W
LANDMARK SAVINGS <LSA> COMPLETES OFFICE SALE.
    PITTSBURGH, March 6 - Landmark Savings Association said it
completed the sale of its Whitehall, Pa., office, including
deposits of about 31 mln dlrs, to Parkvale Savings Association.
    Landmark said it realized a gain of about 1.1 mln dlrs on
the sale. The price was not disclosed.


.I 19266
.C
grain;corn;
.W
U.S. FEEDGRAINS GROUP ATTACKS CANADA CORN RULING.
    WASHINGTON, March 6 - The U.S. Feedgrains Council is
surprised and disappointed by the Canadian Import Tribunal's
decision that imports of corn from the U.S. are materially
injuring Canadian corn producers, a council spokesman said.
    "At a time when the world is attempting to liberalize trade
in the new rounnd of multilateral negotiations, it is
incomprehensible that a country that stands to gain so much
from the reduction in agricultural trade barriers would
threaten that process by caving in to pressures for
protectionism," council president Darwin E. Stolte said.
    Canada's finding will strain the U.S./Canadian trading
relationship, could damage the future of U.S. feedgrains 
support for the free trade negotiations, and also negatively
impact farm trade reform with other nations, the council said.


.I 19267
.C
earn
.W
HOLLY SUGAR CORP <HLY> SETS REGULAR DIVIDEND.
    COLORADO SPRINGS, Colo., March 6 - 
    Qtly div 25 cts vs 25 cts prior
    Pay March 31
    Record March 18


.I 19268
.C
earn
.W
CORADIAN CORP <CDIN> YEAR NET.
    LATHAM, N.Y., March 6 -
    Shr profit one cent vs loss 37 cts
    Net profit 148,000 dlrs vs loss 1,686,000
    Revs 11.4 mln vs 10.9 mln
    NOTE: Company said net is before extraordinary items and
taxes and declined to provide data on those items


.I 19269
.C
livestock
.W
USDA TO CONDUCT SURVEY FOR AVIAN INFLUENZA.
    WASHINGTON, March 6 - U.S. Agriculture Department animal
health officials are conducting a national survey of live-bird
markets and auctions to check for signs of avian influenza, an
infectious viral disease of poultry, the department said.
    The survey will locate poultry dealers and live-bird
markets that sell live birds directly to the consumer and once
the dealers and markets are identified, there will be tests to
determine any past or present exposure to avian influenza
viruses, it said.
    In 1983-84, an outbreak of avian influenza in Pennsylvania,
Maryland, Virginia and New Jersey cost taxpayers 65 mln dlrs to
control and required the destruction of more than 17 mln birds,
it said.
    The survey is expected to be completed by April 15.


.I 19271
.C
ship
.W
TWO HUNDRED PEOPLE RESCUED FROM SINKING FERRY.
    BRUSSELS, March 6 - About 200 people were rescued, some
badly hurt, from a sinking cross Channel ferry carrying
approximately 540 people off the Belgian port of Zeebrugge, a
port control spokesman said.
    The spokesman, contacted by telephone, said only one third
of car ferry, the Herald of Free Enterprise owned by the
British company Townsend Thoresen, remained above water.
    Divers have been sent down to try to rescue passengers
believed trapped in the ferry, which was on its way from
Zeebrugge to the English port of Dover and capsized just off
the pier, he added


.I 19274
.C
earn
.W
FOXBORO CO <FOX> 4TH QTR LOSS.
    FOXBORO, Mass., March 6 - 
    Oper shr loss one ct vs loss 2.65 dlrs
    Oper net loss 100,000 vs loss 32.7 mln
    Revs 142.3 mln vs 168.8 mln
    12 mths
    Oper shr profit 57 cts vs loss 2.76 dlrs
    Oper net profit 7,072,000 vs loss 34.2 mln
    Revs 544.0 mln vs 572.2 mln
    Note: 1986 oper net excludes tax credits of 2,149,000 dlrs
for qtr and 2,200,000 dlrs for 12 mths. Includes restructuring
charges of 120 mln dlrs for qtr, 527 mln dlrs for 12 mths.


.I 19275
.C
wheat;grain;
.W
LYNG SAYS NO DECISIONS TAKEN AT CABINET COUNCIL.
    WASHINGTON, March 6 - U.S. Agriculture Secretary Richard
Lyng said no decisions were taken today at a White House
Economic Policy Council meeting.
    Speaking to reporters on his return from the meeting, Lyng
said only about five minutes of the session dealt with
agriculture issues.
    "It was not a decision making meeting," Lyng said.
    Aides to Lyng earlier said the administration's agriculture
legislative proposals would be the farm-related topic on the
agenda. Lyng would not comment on what farm issues were
discussed.
    Asked how he would respond to farm groups and Congressmen
urging the U.S. to offer a wheat bonus to the Soviet Union,
Lyng said he would be listen but be "non-committal."


.I 19276
.C
money-supply
.W
TREASURY BALANCES AT FED FELL ON MARCH 5.
    WASHINGTON, March 6 - Treasury balances at the Federal
Reserve fell on March 5 to 3.467 billion dlrs from 3.939
billion dlrs the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 14.350
billion dlrs from 14.391 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 17.817
billion dlrs on March 5 compared with 18.330 billion dlrs on
March 4.


.I 19280
.C
trade
.W
NICARAGUA, ROMANIA, PARAGUAY LOSE TRADE RIGHTS.
    WASHINGTON, March 6 - President Reagan formally ended
preferential duty-free trade treatment for exports from
Nicaragua, Romania and Paraguay under the Generalized System of
Preferences (GSP).
    He took the action after determining that the three
countries are not taking steps to give their workers
internationally recognized rights.
    U.S. Trade Representative Clayton Yeutter had announced the
intended action on January 2. The United States conducts no
trade with Nicaragua and very little trade with Romania and
Paraguay.


.I 19282
.C
wheat;grain;
.W
U.S. FEEDGRAIN 0/92 SUPPORTERS EVALUATE POSITION.
    WASHINGTON, March 6 - Advocates of a 0/92 plan for
feedgrains will likely delay offering their proposals if a
disaster aid bill before the House Agriculture Committee is
scaled back to include only 1987 winter wheat, congressional
sources said.
    The disaster aid bill, introduced by Rep. Glenn English
(D-Okla.), sparked sharp controversy with its proposals to
implement a 0/92 program for 1987 wheat and 1988 winter wheat.
    An agreement has been reached to trim the bill back to 1987
wheat, but supporters of a 0/92 feedgrains plan said even that
scaled-down version would not be equitable for farmers.
    Unless the English bill pertains only to 1987 winter wheat,
it is more than a simple disaster payment and feedgrains should
be treated equally, they said.
   If the bill is narrowed to just winter wheat, then
supporters of a 0/92 feedgrains amendment will probably not
offer their proposals next week, sources said.
   English has agreed to support an amendment by Rep. Charles
Stenholm (R-Tex) to narrow the bill to 1987 wheat only, but
whether he would also back a further reduction is unclear.
    Agricultural aides to English said the congressman's first
choice is to make the option available to all 1987 wheat
farmers. However, if the political reality is that disaster aid
for winter wheat farmers would be unavailable because of
controversy over spring wheat, then English might consider an
even greater cutback in the bill, they said.
    Under a 0/92 plan, farmers could forego planting and still
receive 92 pct of deficiency payments.
    Rep. Arlan Stangeland (R-Minn.) and Harold Volkmer (D-Mo.)
have both expressed interest in expanding the English bill to
include a 0/92 program for feedgrains.
    An aide said Stangeland does not want to reopen the farm
bill, but to be fair to all crops.
    Only a small percentage of spring wheat farmers would
likely sign up for 0/92 since the incentives to plant are
greater than to idle the land, economists said.
    Opponents to a 0/92 feedgrains program argue it is
premature to make major changes in the farm bill and that the
House Agriculture Committee needs to study more closely the
impacts of such a program.


.I 19284
.C
earn
.W
ALFIN INC <AFN> 2ND QTR JAN 31 LOSS.
    NEW YORK, March 6 -
    Shr loss 20 cts vs profit 14 cts
    Net loss 1,417,000 vs profit 933,000
    Revs 5,623,000 vs 5,403,000
    Avg shrs 6,957,300 vs 7,115,248
    Six mths
    Shr loss 18 cts vs profit 43 cts
    Net loss 1,269,000 vs profit 3,079,000
    Revs 15.7 mln vs 14.2 mln
    Avg shrs 7,195,720 vs 7,115,248


.I 19285
.C
acq
.W
BELL AND HOWELL <BHW> COMPLETES SALE OF UNIT.
    SKOKIE, Ill., March 6 - Bell and Howell Co said it
completed the sale of its computer output microfilm business to
COM Products Inc, a unit of privately-held <LeBow Industries
Inc>.
    The sum of the deal was not disclosed.
    The unit makes a device that prints data directly from a
computer onto microfilm.


.I 19288
.C
money-supply
.W
******U.S. BUSINESS LOANS FALL 618 MLN DLRS IN FEB 25 WEEK, FED SAYS.
Blah blah blah.

.I 19290
.C
money-supply
.W
U.S. BUSINESS LOANS FALL 618 MLN DLRS.
    WASHINGTON, March 6 - Business loans on the books of major
U.S. banks, excluding acceptances, fell 618 mln dlrs to 278.88
billion dlrs in the week ended February 25, the Federal Reserve
Board said.
    The Fed said that business loans including acceptances fell
897 mln dlrs to 281.23 billion dlrs.


.I 19291
.C
earn
.W
HYPONEX CORP <HYPX> YEAR NET.
    FORT WAYNE, Ind., March 6 -
    Shr 85 cts vs 1.20 dlrs
    Net 5,130,000 vs 7,236,000
    Revs 93.6 mln vs 91.9 mln


.I 19295
.C
earn
.W
HMO AMERICA INC <HMOA> YEAR LOSS.
    CHICAGO, March 6 -
    Shr loss 33 cts vs profit 38 cts
    Net loss 2,359,978 vs profit 2,805,389
    Revs 76.2 mln vs 61.8 mln
    Avg shrs 7,096,886 vs 7,392,586


.I 19298
.C
gold;copper;platinum;nickel;palladium;
.W
TECHNIGEN PLATINUM CORP IN METALS FIND.
    VANCOUVER, March 6 - Technigen Platinum corp said initial
results of a 13-hole drilling program on its R.M. Nicel
platinum property in Rouyn-Noranda, Quebec, indicate extensive
near-surface zones highly enriched in gold, platinum and
palladium.
    The metals were found in rocks on the periphery of a
sulphide deposit.
    It said values of up to 0.073 ounce of platinum, 0.206
ounce palladium, three pct copper and 4.5 pct nickel were found
over a drill section of 13 feet.


.I 19299
.C
livestock
.W
AMERICAN PORK CONGRESS TO BE OVERHAULED IN 1988.
    Chicago, March 6 - The National Pork Producers Council,
NPPC, announced at this year's American Pork Congress, APC,
that the Congress and trade show will be divided into two parts
in 1988.
    Next years APC, held in Atlanta, will be a business session
only and will continue to be the first week of March.
    The trade show is being changed into a new international
event called the World Pork Expo. The first expo will be held
in June 1988 in Des Moines with an expanded format, they said.
    Executive vice-president Orville Sweet said the decision to
spilt the show and Congress came about because there are
producers who never get to see the trade show floor.
    "It makes sense that we divide the business session from
the trade show," Sweet said.


.I 19302
.C
acq
.W
<DTD ENTERPRISES INC> IN REORGANIZATION.
    CINCINNATI, March 6 - DTD Enterprises Inc said it filed an
8-K report indicating that <EaglesLair Development Corp> had
assumed control of the company under a reorganization plan
signed last month.
    The company said D. Gerald Lach, president of EaglesLair,
was named president and a director of DTD.
    In addition, DTS's board resigned and EaglesLair appointed
new directors, the company said.


.I 19304
.C
earn
.W
SCHWAB SAFE CO <SS> UPS PAYOUT.
    LAFAYETTE, Ind., March 6 -
    Qtly div 13 cts vs 12 cts prior
    Pay April 17
    Record March 31


.I 19305
.C
earn
.W
PHYSICIANS INSURANCE CO <PICO> 4TH QTR NET.
    PICKERINGTON, Ohio, March 6 -
    Shr 31 cts vs 53 cts
    Net 960,143 dlrs vs 1,631,011 dlrs
    Revs 27.4 mln dlrs vs 18.9 mln dlrs
    Avg shrs 3,079,533 vs 3,096,095
    12 mths
    Shr 1.01 dlrs vs 92 cts
    Net 3,113,337 dlrs vs 2,855,755 dlrs
    Revs 106.5 mln dlrs vs 78.3 mln dlrs
    Avg shrs 3,079,516 vs 3,089,140
    NOTE: per share amounts for qtr and year prior have been
restated to reflect a six-for-five stock split in August 1986.
    Revs for qtr include capital gains of 3,049,564 vs
2,010,972, and for year of 9,841,204 vs 5,798,995.
    Revs for qtr include non-insurance revenues of 1,627,518 vs
1,550,329, and for year of 7,289,973 vs 4,639,162.
    Revs for qtr include life subsidiary account deposits of
548,538 vs 241,465, and for year of 2,104,840 vs 300,404.


.I 19308
.C
earn
.W
BRADLEY <BRLY> ANNOUNCES LONG-TERM LEASE.
    BOSTON, March 6 - Bradley Real Estate Trust said it signed
a 99-year lease for property in downtown Minneapolis to BCED
Minnesota Inc.
    The lease will increase net income by about 24 cts a share
on a post-February 1987 three-for-two stock split basis. For
1986, the Trust reported net income of 1.3 mln dlrs or 38 cts a
share on a post-split basis.
    Bradley will also be entitled to a one-time additional
rental payment of 30 cts a share upon BCED entering into a
space lease with a prime national tenant and a share in a
portion of net cash flow from operations on the property.


.I 19314
.C
acq
.W
DUMEZ UNIT HAS 94 PCT OF WESTBURNE (WBI).
    MONTREAL, March 6 - (Dumez Investments I Inc) said 94.7 pct
of Westburne International Industries Ltd's outstanding common
shares have been deposited under its takeover bid.
    It said it has received about 11,070,000 shares under its
22.50 dlrs per share offer which expired yesterday.
    Dumez said it will proceed to acquire the remaining common
shares to give it 100 pct ownership of Westburne.
    Dumez is a private company owned jointly by (Dumez S.A.)
and (Unicorp Canada Corp).            


.I 19315
.C
acq
.W
CANADIAN NATURAL RESOURCES TO SELL STAKE.
    Calgary, Alberta, March 6 - <Canadian Natural Resources
Ltd> said it agreed in principle to sell 80 pct of its working
interest in certain producing and non-producing natural gas
properties located in southwestern Saskatchewan.
    The transaction is expected to close on April 1, 1987, the
company said. It did not identify the buyer nor give the
selling price.
    Proceeds will be used to satisfy a February 1987 repayment
demand by one of the company's lenders. Any excess proceeds
will be added to working capital, the company said.


.I 19316
.C
acq
.W
MALRITE BUYS COX'S RADIO STATION UNIT.
    CLEVELAND, March 6 - <Malrite Guaranteed Broadcast Partners
L.P.> said it bought WTRK Inc from <Cox Enterprises Inc> for
13.8 mln dlrs in cash.
    It said WTRK owns and operates WTRK-FM, a Philadelphia
radio station. Transfer of the license for the sation has been
approved by the Federal Communications Commission.
    Malrite Guaranteed said it is a limited partnerhip formed
to acquire and operate radio and tv stations. It said Malrite
Communications Group Inc <MALR> is the general partner.


.I 19320
.C
acq
.W
CYACQ EXTENDS TENDER FOR CYCLOPS <CYL>.
    DAYTON, Ohio, March 6 - 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.


.I 19325
.C
acq
.W
MONO GOLD SAYS PARTNERSHIP AGREES TO BUY SHARES.
    VANCOUVER, British Columbia, March 6 - <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.


.I 19326
.C
earn
.W
USLICO CORP <USVC> INCREASES DIVIDEND.
    ARLINGTON, Va, March 6 -
    Qtly div 22 cts vs 20 cts prior
    payable March 27
    Record March 18


.I 19327
.C
acq
.W
******USAIR GROUP REQUESTS TRANSPORTATION DEPARTMENT ORDER TWA TO DIVEST STAKE.
Blah blah blah.

.I 19330
.C
earn
.W
DIPLOMAT ELECTRONICS <DPEC> TO CUT COSTS.
    MELVILLE, N.Y., March 6 - 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.
   


.I 19331
.C
grain;meal-feed;corn;cornglutenfeed;
.W
U.S. CORN GROWERS BLAST CANADA CORN RULING.
    WASHINGTON, March 6 - 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.


.I 19333
.C
earn
.W
DOLLAR GENERAL CORP <DOLR> QTLY DIVIDEND.
    SCOTTSVILLE, Ky, March 6 -
    Qtly div five cts vs five cts prior
    Payable April three
    Reocrd March 20


.I 19334
.C
earn
.W
HEALTHCARE SERVICES <HSAI> SEES WRITE-OFFS.
    BIRMINGHAM, Ala, March 6 - 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


.I 19335
.C
acq
.W
USAIR <U> SEEKS ORDER AGAINST TWA <TWA>.
    WASHINGTON, March 6 - 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.


.I 19336
.C
earn
.W
PARK-OHIO INDUSTRIES INC <PKOH> 4TH QTR NET.
    CLEVELAND, March 6 -
    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.


.I 19337
.C
earn
.W
BMC INDUSTRIES INC <BMC> 4TH QTR LOSS.
    ST. PAUL, Minn., March 6 -
    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.


.I 19338
.C
earn
.W
UNITED COMPANIES <UNCF> DECLARES STOCK DIVIDEND.
    BATON ROUGE, La, March 6 - 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.
                                                   


.I 19340
.C
grain;corn;
.W
U.S. FARM PROGRAMS HELP CANADIAN CORN PRODUCERS.
    PARK RIDGE, ILL., March 6 - 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.


.I 19341
.C
nat-gas
.W
U.N. ISSUES REPORT ON NATURAL GAS CLAUSES.
    UNITED NATIONS, March 6 - 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.


.I 19342
.C
interest;crude;
.W
POSITIVE OUTLOOK TEMPERED IN U.S. DEBT FUTURES.
    By Brad Schade, Reuters
    CHICAGO, March 6 - 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.


.I 19343
.C
acq
.W
SANDOX BUYS STAUFFER SEEDS.
    MINNEAPOLIS, March 6 - Sandoz Corp's Northrup King Co said
it bought Stauffer Seeds, a unit of Stauffer Chemical Co.
    Terms were not disclosed.


.I 19344
.C
acq
.W
ENERGEN <EGN> BUYS MUNICIPAL GAS SYSTEM.
    BIRMINGHAM, Ala, March 6 - 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.


.I 19345
.C
earn
.W
SIERRA PACIFIC RESOURCES INC <SRP> DIVIDEND.
    RENO, Nev., March 6 -
    Qtly div 43 cts vs 43 cts prior
    Payable May one
    Record April 15


.I 19346
.C
earn
.W
METEX CORP <MTX> 4TH QTR DEC 28.
    EDISON, N.J., March 6 -
    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


.I 19347
.C
earn
.W
HOUSTON OIL TRUST <HO> OMITS MARCH DISTRIBUTION.
    HOUSTON, March 6 - 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.


.I 19350
.C
acq
.W
MONOCLONAL ANTIBODIES <MABS> BUYS COMPANY.
    MOUNTAIN VIEW, CALIF, March 6 - 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.


.I 19352
.C
acq
.W
TAFT<TFB> BIDDERS WOULD SELL ENTERTAINMENT UNIT.
    By Cal Mankowski, Reuters
    NEW YORK, March 6 - 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.


.I 19354
.C
strategic-metal
.W
U.S. TREASURY PROPOSES SOME S. AFRICAN IMPORTS.
    WASHINGTON, March 6 - 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.


.I 19356
.C
earn
.W
BRANIFF INC <BAIR> 4TH QTR LOSS JAN 31.
    DALLAS, March 6 -
    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.


.I 19357
.C
acq
.W
******JUSTICE DEPT. SUPPORTS DISMISSAL OF TWA APPLICATION FOR USAIR CONTROL.
Blah blah blah.

.I 19358
.C
acq
.W
******TRANSPORTATION DEPARTMENT DISMISSES TWA APPLICATION FOR USAIR CONTROL.
Blah blah blah.

.I 19360
.C
strategic-metal
.W
U.S. TREASURY PROPOSES S.AFRICAN URANIUM IMPORTS.
    WASHINGTON, March 6 - 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.


.I 19362
.C
ship
.W
26 REPORTED DEAD IN FERRY DISASTER.
    ZEEBRUGGE, Belgium, March 6 - 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.


.I 19363
.C
acq
.W
CONTINENTAL FEDERAL <CONF> HOLDER TO SELL STAKE.
    OKLAHOMA CITY, March 6 - 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.


.I 19364
.C
acq
.W
BROKER'S CHOICE TO BUY RUBBERTECH.
    EXCELSIOR, Minn, March 6 - 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.


.I 19365
.C
grain;corn;
.W
ARGENTINA UNAFFECTED BY BRAZIL'S MAIZE DECISION.
    BUENOS AIRES, March 6 - 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.


.I 19366
.C
acq
.W
DOT DISMISSES TWA <TWA>, USAIR <U> APPLICATION.
    WASHINGTON, March 6 - 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.


.I 19368
.C
acq
.W
TWA <TWA> TO REFILE WITH U.S. AGENCY.
    NEW YORK, MARCH 6 - 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.


.I 19369
.C
acq
.W
JUSTICE ASKS U.S. DISMISSAL OF TWA (TWA) FILING.
    WASHINGTON, March 6 - 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.


.I 19370
.C
interest
.W
HONG KONG BANKS LEAVE INTEREST RATES UNCHANGED.
    HONG KONG, March 7 - 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.


.I 19371
.C
acq
.W
SAVINGS ACUISITION IN CALIFORNIA ANNOUNCED.
    WASHINGTON, March 7 - 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.


.I 19372
.C
coffee
.W
COLOMBIA DENIES SELLING COFFEE BELOW MARKET.
    BOGOTA, March 7 - 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.


.I 19373
.C
ship
.W
TWO HUNDRED FEARED DEAD IN FERRY DISASTER.
    ZEEBRUGGE, Belgium, March 7 - 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.


.I 19374
.C
acq
.W
MALAYSIA BAILS OUT ANOTHER COMMERCIAL BANK.
    KUALA LUMPUR, March 7 - 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.


.I 19375
.C
crude;fuel;jet;
.W
ECUADOR ADOPTS AUSTERITY MEASURES AFTER QUAKE.
    QUITO, March 7 - 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.


.I 19376
.C
ship
.W
FERRY DISASTER MAY RANK AMONG WORST TRAGEDIES.
    LONDON, March 7 - 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.


.I 19377
.C
ship
.W
ALMOST 200 DEAD IN FERRY DISASTER.
    ZEEBRUGGE, March 7 - 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.


.I 19378
.C
earn
.W
<SIME DARBY BHD> SIX MONTHS TO DECEMBER 31.
    KUALA LUMPUR, March 7 -
    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.


.I 19379
.C
earn
.W
<CONSOLIDATED PLANTATIONS BHD>.
    KUALA LUMPUR, March 7 - 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.


.I 19380
.C
earn
.W
<TRACTORS MALAYSIA HOLDINGS BHD>.
    KUALA LUMPUR, March 7 - 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.


.I 19381
.C
earn
.W
<DUNLOP MALAYSIAN INDUSTRIES BHD>.
    KUALA LUMPUR, March 7 - 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.


.I 19382
.C
sugar
.W
BANGLADESH SUGAR PRODUCTION ALMOST DOUBLES.
    DHAKA, March 7 - 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.


.I 19383
.C
gnp
.W
GERMAN 1988 TAX CUTS RAISED BY 5.2 BILLION MARKS.
    BONN, March 7 - 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."


.I 19384
.C
money-fx;interest;
.W
YIELD FALLS ON 30-DAY SAMA DEPOSITS.
    BAHRAIN, March 7 - 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.


.I 19386
.C
ship
.W
EXPERTS HAD EXPRESSED FEARS OVER RO-RO SAFETY.
    LONDON, March 7 - 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.


.I 19388
.C
crude
.W
IRAQ-TURKEY OIL PIPELINE CUT BY LANDSLIDE.
    ANKARA, March 8 - Engineers are working to repair the Iraq-
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.


.I 19389
.C
ship
.W
BRAZIL SEAMEN CONTINUE STRIKE AFTER COURT DECISION.
    RIO DE JANEIRO, March 8 - 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.


.I 19391
.C
crude
.W
ECUADOR TO EXPORT NO OIL FOR FOUR MONTHS, OFFICIAL.
    By WALKER SIMON, REUTERS
    QUITO, March 9 - 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.


.I 19392
.C
meal-feed;tapioca;
.W
EC FARM LIBERALISATION SEEN HURTING THAI TAPIOCA.
    BANGKOK, March 9 - 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.


.I 19393
.C
veg-oil;grain;sugar;cotton;
.W
CHINA RAISES CROP PRICES TO INCREASE OUTPUT.
    PEKING, March 9 - 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.


.I 19394
.C
sugar
.W
AUSTRALIA SELLS 180,000 TONNES OF SUGAR TO USSR.
    BRISBANE, March 9 - 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.


.I 19395
.C
rubber
.W
THAI NATURAL RUBBER EXPORTS RISE IN 1986.
    BANGKOK, March 9 - 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).


.I 19396
.C
livestock;carcass;
.W
AUSTRALIAN BEEF OUTPUT DECLINES IN JANUARY.
    CANBERRA, March 9 - 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.


.I 19397
.C
interest
.W
GERMAN GOVERNMENT NEEDS SEEN RAISING BOND YIELDS.
    By Alice Ratcliffe, Reuters
    FRANKFURT, March 9 - 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.


.I 19400
.C
iron-steel
.W
USSR TO CUT COAL PRICE FOR JAPANESE STEELMILLS.
    TOKYO, March 9 - 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.


.I 19401
.C
gold
.W
PLACER PACIFIC HOPES FOR MISIMA GOLD APPROVAL SOON.
    SYDNEY, March 9 - <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.


.I 19403
.C
trade
.W
BANGLADESH TRADE DEFICIT NARROWS IN OCTOBER 1986.
    DHAKA, March 9 - 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.


.I 19408
.C
ipi
.W
SWISS INDUSTRIAL OUTPUT RISES IN FOURTH QQUARTER.
    BERNE, March 9 - 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.


.I 19411
.C
money-fx
.W
ASIAN DOLLAR ASSETS EXCEED 200 BILLION DLRS.
    SINGAPORE, March 9 - 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.


.I 19412
.C
money-supply
.W
SINGAPORE M-1 MONEY SUPPLY UP 3.7 PCT IN DECEMBER.
    SINGAPORE, March 9 - 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.


.I 19413
.C
ipi
.W
CHINESE INDUSTRIAL GROWTH RATE UP AFTER WEAK 1986.
    PEKING, March 9 - 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.


.I 19414
.C
money-fx;interest;
.W
NEW DUTCH ADVANCES TOTAL 6.5 BILLION GUILDERS.
    AMSTERDAM, March 9 - 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.


.I 19416
.C
crude
.W
IRAN SELLING DISCOUNTED CRUDE, JAPAN TRADERS SAY.
    TOKYO, March 9 - 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.


.I 19417
.C
acq
.W
ICI SELLS STAKE IN LISTER AND CO.
    LONDON, March 9 - 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.


.I 19419
.C
money-fx
.W
U.K. MONEY MARKET SHORTAGE FORECAST AT 250 MLN STG.
    LONDON, March 9 - The Bank of England said it forecast a
shortage of around 250 mln stg in the money market today.
    Among the factors affecting liquidity, it said bills
maturing in official hands and the treasury bill take-up would
drain around 1.02 billion stg while below target bankers'
balances would take out a further 140 mln.
    Against this, a fall in the note circulation would add 345
mln stg and the net effect of exchequer transactions would be
an inflow of some 545 mln stg, the Bank added.


.I 19420
.C
money-fx;interest;
.W
BANK OF FRANCE SETS MONEY MARKET TENDER.
    PARIS, March 9 - The Bank of France said it invited offers
of first category paper today for a money market intervention
tender.
    Money market dealers said conditions seemed right for the
Bank to cut its intervention rate at the tender by a quarter
percentage point to 7-3/4 pct from eight, reflecting an easing
in call money rate last week, and the French franc's steadiness
on foreign exchange markets since the February 22 currency
stabilisation accord here by the Group of Five and Canada.
    Intervention rate was last raised to eight pct from 7-1/4
on January 2. Call money today was quoted at 7-11/16 7-3/4 pct.


.I 19421
.C
crude
.W
AMOCO REPORTS SOUTH CHINA SEA OIL FIND.
    PEKING, March 9 - The U.S. <Amoco Petroleum Corp> has
reported an offshore oil find at its Pearl River basin
concession in the South China Sea, the New China News Agency
said.
    It said the Liu Hua 11-1-1 A well produced at around 2,240
barrels per day at a depth of 305 metres.
    The news agency said Amoco plans to drill a second well in
the area this year, but gave no further details.


.I 19424
.C
interest
.W
******NATIONAL WESTMINSTER BANK SAYS IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.
Blah blah blah.

.I 19425
.C
interest
.W
NATIONAL WESTMINSTER BANK CUTS BASE RATE.
    LONDON, March 9 - National Westminster Bank Plc said it has
cut its base lending rate  0.5 percentage points to 10.5 pct
today.
    National Westminster said that it was responding to general
easing in money market rates.
    Its move followed a signal from the Bank of England earlier
this afternoon that it would endorse a half point cut in the
base rate, a surprise move following its strong signals last
week that such a move would be premature.
    However, since then the pound has continued to gain
strongly.


.I 19426
.C
earn
.W
U.S. FACILITIES <USRE> SEMI-ANNUAL DIVIDEND.
    COSTA MESA, Calif., March 9 -
    Semi-annual dividend 4 cts
    Pay May 29
    Record April 14
Note: full name is U.S. Facilities Corp. This is first dividend
declared since company completed its initial public offering on
November 7.


.I 19427
.C
acq
.W
STANDARD PACIFIC <SPF> ACQUIRES SOUTH BAY S/L.
    COSTA MESA, Calif, March 9 - Standard Pacific LP said it
has acquired substantially all of the assets and liabilities of
South Bay Savings and Loan Association of Newport Beach.
    The firm said over the weekend that it will conduct its
savings and loan activities through Standard Pacific Savings
FA, a Federal stock association.
    On Friday, the Federal Home Loan Bank Board in Washington
said it approved the acquisition of South Bay S and L, a 62.5
mln dlr state-chartered stock association, by Standard Pacific,
which has 312.8 mln dlrs in assets.
    The Bank Board said that the Federal Savings and Loan
Insurance Corp will make a cash contribution, provide capital
loss coverage and indemnify Standard Pacific against
undisclosed liabilities.


.I 19428
.C
strategic-metal
.W
U.S. TO ALLOW TEMPORARY IMPORTS OF S.A. URANIUM.
    WASHINGTON, March 9 - The Treasury Department said it would
temporarily permit imports of South African uranium ore and
oxide pending clarification of anti-apartheid sanctions laws
passed by Congress last fall.
    The decision was announced late Friday. It applies, until
July 1, to uranium ore and oxide imported into the U.S. for
processing and re-export to third countries.
    The Treasury said it took the action because it felt that
when Congress passed the comprehensive South African sanctions
bill last fall over President Reagan's veto it had not intended
to hurt U.S. industry.
    In addition, the Treasury said it would permit U.S.-made
goods to be imported temporarily from South African
state-controlled organizations for repair or servicing.
   


.I 19431
.C
acq
.W
PIEDMONT <PIE> AGREES TO USAIR <U> BUYOUT.
    NEW YORK, March 9 - USAir Group Inc said Piedmont Aviation
Inc has agreed to be acquired for 69 dlrs per share.
    The company, in a newspaper advertisement, said it has
started a tender offer for all Piedmont shares at that price,
and the Piedmont board, with two directors absent, has
unanimously approved the bid.  The offer and withdrawal rights
are to expire April Three unless extended, and the bid is to be
followed by a merger at the same price.
    USAir said Piedmont has granted it an irrevocable option to
buy up to 3,491,030 new shares under certain circumstances.
Piedmont now has about 18.6 mln shares outstanding.
    USAir said the tender is conditioned on receipt of enough
shares to give USAir at least a 50.1 pct interest in Piedmont
on a fully diluted basis and approval by the U.S. Department of
Transportation of a voting trust agreement permitting USAir to
buy and hold shares pending review of its application to gain
control of Piedmont.
    The company said its merger agreement with Piedmont
provides that the offer is not to be amended without Piedmont's
prior written consent in any way that would be adverse to
Piedmont shareholders, but it said it could cut the number of
shares to be bought without Piedmont's consent.
    USAir said it could reduce the number of Piedmont shares to
be purchased in the offer to no less than the minimum number
needed to cause the voting trust condition of the bid to be
satisfied.
    In that case, it said if more than that minimum number of
shares were tendered, it would buy shares on a pro rata basis.
    In February USAir had offered to pay 71 dlrs per share in
cash for 50 pct of Piedmont's stock and 1.55 to 1.90 USAir
shares for each remaining Piedmont share.
    Last week, Carl C. Icahn-controlled Trans World Airlines
Inc <TWA> made a conditional offer to acquire USAir for 52 dlrs
per share, a bid that was rejected by the USAir board.
    The Transportation Department on Friday rejected TWA's
application to acquire USAir on the grounds that the
application failed to comply with department regulations by
omitting necessary information.  TWA said it would refile
today, providing the information needed.
    On Friday TWA said it had already acquired four mln shares
or 15 pct of USAir.


.I 19433
.C
crude;nat-gas;
.W
API REPORTS SHARP FALL IN DRILLINGS.
    WASHINGTON, March 9 - Estimated oil and gas drilling
completions in the United States dropped by almost 41 per cent
in 1986 from 1985, the American Petroleum Institute said.
    API, an industry group, said that of the 42,387 wells
completed last year, a total of 19,741 were oil wells, 8,645
were natural gas wells and 14,001 were dry holes.
    In 1985, a total of 71,539 wells were drilled - 36,834 oil
wells, 13,036 gas wells and 21,669 dry holes.


.I 19434
.C
instal-debt
.W
U.K. CREDIT BUSINESS FALLS IN JANUARY.
    LONDON, March 9 - New credit advanced by finance houses,
retailers, bank credit cards and other specialist providers of
credit slipped to 2.66 billion stg in January from 2.78 billion
in December - but remained close to the average level for
1986's fourth quarter, the Department of Trade and Industry
said.
    Of the January total, 1.15 billion stg was advanced on bank
credit cards.
    On a three-month basis, total advances in November to
January were 3.0 pct lower than in the previous three months.
Within this total, lending to consumers fell by 6.0 pct and
lending to businesses declined by 5.0 pct.
    At end-January 1987, the total amount outstanding was 24.07
billion stg, up from December's 23.77 billion stg and 3.0 pct
above the total three months earlier, the department said.
    January saw a rise of 300 mln stg in amounts outstanding to
finance houses, other specialist credit grantors and retailers.
    The department said advances on credit cards rose by 1.0
pct between the latest two three-month periods. Retailers
advanced 3.0 pct less in the latest three months than in the
previous three months, it said.


.I 19435
.C
ship;crude;
.W
BRAZILIAN SEAFARERS' STRIKE DAMAGES OIL EXPORTS.
    SAO PAULO, March 9 - A strike by Brazil's 40,000 seafarers
who want pay rises of up to 180 pct may have cost the
state-owned oil company Petrobras 20 mln dlrs in lost export
orders, the company's commercial director Arthur de Carvalho
was quoted as saying in press reports.
    More than 170 ships in Brazil, and about nine more in
foreign ports, have been halted by the strike, which began on
February 27.
    Marines began blockading the ships on Friday after the
strike was ruled illegal, and some strikers are running short
of food, National Merchants Marine Union president Edson Areias
said.


.I 19437
.C
dlr;gnp;bop;trade;
.W
OECD TRADE, GROWTH SEEN SLOWING IN 1987.
    LONDON, March 9 - The 24 nations of the Organisation for
Economic Cooperation and Development (OECD), hampered by
sluggish industrial output and trade, face slower economic
growth, and their joint balance of payments will swing into
deficit in 1987, the Economist Intelligence Unit (EIU ) said.
    The EIU said in its World Trade Forecast it revised OECD
economic growth downwards to 2.5 pct this year, compared with a
2.8 pct growth forecast in December.
    It said the new areas of weakness are West Germany and the
smaller European countries it influences, and Japan, hardest
hit by currency appreciation this year.
    The independent research organisation cut its 1987 growth
rate forecasts for West Germany to 2.2 pct from 3.2 pct in
December and to 2.3 pct from three pct for Japan.
    It said it expected the OECD to post a current account
deficit of some 13 billion dlrs in both 1987 and 1988, due in
large part to a 1.50 dlrs a barrel rise in 1987 oil prices.
    It said the U.S. Current account deficit looked likely to
fall even more slowly than forecast, to 125 billion dlrs in
1987 and 115 billion in 1988 from 130 billion in 1986.
    It said it expected West Germany to post a 31 billion dlr
payments surplus and Japan a 76 billion dlr surplus this year.
    The EIU said it saw oil prices dropping to around 16.50
dlrs a barrel by end-1987 and 15.50 dlrs in 1988 from about 18
dlrs last year, as adherence to OPEC output policy becomes
increasingly ragged.
    It said the dollar is poised to resume its decline in
foreign exchange markets, and will lose a further 13 pct on its
trade-weighted index this year and five pct in 1988 after last
year's 18.4 pct drop. The average mark/dollar rate is put at
1.80 marks this year and 1.70 in 1988 while the yen/dollar rate
is expected to break through the 150 yen barrier with an
average value of 150 yen in 1987 and 146 yen in 1988, it said.
    "This is not a crash scenario but the dollar's steeper
angle of descent increases the risk of ending with a fireball
rather than a three-point landing," the EIU said.
    "Talking will not stop the dollar's slide for long and the
February meeting (of finance ministers of the Group of Five and
Canada) produced scant promise of either a decisive shift to
more expansive policies in West Germany and Japan, or a tighter
U.S. Fsical policy," it said.
    It said the key to the dollar's fortunes was the
willingness of Japanese institutions to buy U.S. Government
assets despite prospects of sustaining a currency loss.
    "Thus far they have been willing," the EIC said, adding
that if Japan was deterred from buying U.S. bonds the dollar
would collapse.
    To contain such a currency crisis, dollar interest rates
would have to soar, bringing recession and a Third World debt
crisis, it said.
    On trade, the EIU said prospects for 1987 look
"increasingly sick."
    Import growth, forecast in December at 4.5 pct, is now seen
slowing down to around 3.8 pct in 1987 with a recovery only to
4.2 pct in 1988, it said.
    The weakness of the West German economy is the biggest
single factor, with import growth there expected to feature a
sluggish 3.5 pct growth in 1987 against the 6.5 pct forecast in
December, the EIU said.
    On the export side, it said it saw weak demand in West
Germany affecting export prospects elsewhere in Europe, while
Japan's exports in 1987 would remain flat and sales by U.S.
Exporters would respond only marginally to a lower, more
competitively-priced dollar.
    It said in most of Europe and in Japan, raw materials and
oil will cost less in domestic currency in 1987 than in 1986.


.I 19438
.C
dlr;money-fx;interest;
.W
POEHL SAYS FURTHER RATE CUT POSSIBLE - SOURCES.
    By Allan Saunderson and Antonia Sharpe, Reuters
    FRANKFURT, March 9 - Bundesbank president Karl Otto Poehl
told a closed investment symposium that West Germany could cut
leading interest rates again if the United States makes a
similar move, banking sources said.
    The sources were reporting Poehl's remarks at a symposium
in Duesseldorf last week organised by Deutsche Bank Ag. Press
representatives were not invited.
    The sources, speaking separately, said Poehl told about 200
bankers in reply to questions that a cut in U.S. Interest rates
would give room for a matching measure in Germany.
    "It was a definite hint at lower German interest rates," said
one banker who attended the symposium.
    A Bundesbank spokesman said the central bank would have no
comment on the reported remarks, made at the private meeting.
    But, according to a second source, who also declined to be
identified, Poehl's comments were seen by bankers present as a
direct pointer to further moves by the central bank to defend
German industry from an additional revaluation of the mark.
    "He said if the Americans drop their interest rates then the
Bundesbank would also drop them. He said that quite clearly,"
the second source said.
    In reply to questions, Poehl also said the half-point cut
in the discount and Lombard rates on January 22 came after the
U.S. Had signalled it would be prepared to attend a meeting to
discuss the level of the dollar on condition Germany made such
a move in advance, the sources said.
    Asked if American authorities could have been persuaded, by
cuts in German rates, to come to the bargaining table as early
as last September, one of the sources quoted Poehl as saying,
"No, they wouldn't have been. We checked that."
    The Paris meeting of the Group of Six industrial nations
took place exactly one month after the German cut in rates.
    Poehl emphasised in his comments the very close talks
between central banks before and after the G-6 meeting, saying
that financial markets had not fully realised the significance
of the Paris session and the U.S. Agreement to stem further
falls in the value of the dollar, the sources said.
    For the first time all participants at the summit agreed
that a further fall in the dollar would be harmful for all
world economies, including the U.S., Poehl had said.
    The sources said the tone of Poehl's comments boosted
growing sentiment that the dollar would be stabilised around
current levels by international central bank cooperation.
    One source said Poehl's remarks also underlined the fact
that the Bundesbank was now more prepared to be accommodative
in monetary policy in order to prevent a further slowdown in
West Germany's economic growth.
    Poehl and other Bundesbank officials have in the past
stressed that the German central bank had no direct
responsibility for growth and was solely concerned with
combatting inflation.
    This led, for instance, to the introduction of a tighter
monetary stance from the beginning of December until the
half-point cut in rates in late January.
    The sources quoted Poehl as saying that the current
overshooting of the German monetary target would not directly
respark inflation. The Bundesbank was not obliged to react
immediately whenever such overshooting occurs.
    Latest data for central bank money stock, the Bundesbank's
main measure of money supply, showed the measure was growing at
7-1/2 pct in January, outside its three to six pct 1987 target.
    Share prices rose in very active trading today, with
dealers reporting that Poehl's remarks, coupled with a bullish
outlook on stock prices from Deutsche at the same symposium,
brought in strong bargain hunting at current low levels.


.I 19441
.C
acq
.W
SOSNOFF STARTS BID FOR CAESARS WORLD <CAW>.
    NEW YORK, March 9 - <MTS Acquisition Corp>, a company
formed by Martin T. Sosnoff, said it has started a tender offer
for all shares of Caesars World Inc at 28 dlrs each.
    In a newspaper advertisement, MTS said the offer and
withdrawal rights expire April Three unless extended.
    Sosnoff, a New York investor, already owns about four mln
of Caesars' 30.3 mln shares outstanding, or about 13.3 pct, and
is Caesars' largest shareholder.  Caesars owns casino hotels in
Nevada and honeymoon resorts in Pennsylvania's Pocono
Mountains.  It also controls Caesars New Jersey Inc <CJN>,
which owns an Atlantic City, N.J., casino hotel.
    For the second quarter ended January 31, Caesars World
earned 12.6 mln dlrs on revenues of 190.4 mln dlrs, up from
earnings of 7,500,000 dlrs and revenues of 163.8 mln dlrs a
year before.  For all of fiscal 1986, the company earned 41.0
mln dlrs on revenues of 694.4 mln dlrs.
    MTS said the offer is conditioned on receipt of at least
enough shares to give Sosnoff a majority interest on a fully
diluted basis, the arrangement of sufficient financing to buy
all Caesars shares not already owned and pay related costs and
approval by the New Jersey Casino control Commission and the
NEvada Gaming Commission and State Gaming Control Board.
    MTS said Marine Midland Banks Inc <MM> has committed to
lend it 100 mln dlrs for the acquisition and use its best
efforts to syndicate another 400 mln dlrs in senior financing
for the transaction.
    It said its financial adviser, PaineWebber Group Inc <PWJ>,
has stated in writing that subject to market conditions, it is
highly confident that it can arrange commitments for up to 475
mln dlrs in "mezzanine" financing.
    MTS said it does not expect problems in obtaining New
Jersey and Nevada regulatory approval for the acquisition,
since ownership in a Caesars stake has already been cleared.
    In June 1986, Sosnoff requested a seat on the Caesars World
board, a request that has not yet been granted.  In September
1986, Sosnoff, who is chairman of <Atalanta/Sosnoff Capital
Corp>, filed for clearance under U.S. antitrust laws to raise
his interest in Caesars World to 25 pct.
    Sosnoff said, in a letter to Caesars World chairman and
chief executive officer Henry Gluck, that "The decision to go
directly to the shareholders was made at the urging of may
financial and legal advisors, who repeatedly stressed to me the
lack of responsiveness of the management in the past."
    Sosnoff, who said he has made numerous efforts to express
his views to management on ways of maximizing shareholder
values, said Caesars twicce refused his request for a board
seat.  "My advisers felt that, had I given you advance notice,
you would have used the time to throw up obstacles to my offer
rather than giving it serious consideration," he said.
    Sosnoff said he hopes that Caesars World management will be
willing to negotiate an acquisition agreement with him.
    "As I have indicated publicly in the past, I believe
operating management of the company has performed well and that
appropriate consideration should be given to a significant
equity interest for them in the company following the
acquisition," Sosnoff said in the letter to Gluck.
    MTS said Sosnoff has asked the company to fix March 27 as
the record date for the determination of shareholders entitled
to authorize action without a meeting -- including the election
or removal of directors.


.I 19442
.C
gnp;bop;cpi;jobs;dfl;
.W
DUTCH PLANNING AGENCY FORECASTS LOWER GROWTH.
    THE HAGUE, March 9 - Dutch economic growth is slowing as a
firming guilder cuts competitiveness abroad and industries
reduce the pace of investment, the Dutch official planning
agency CPB said.
    The Centraal Planbureau, publishing its 1987 economic
outlook, said Dutch Net National Income (NNI) was expected to
grow by one pct this year, down from two pct growth recorded in
1986 and 2.5 pct in 1985 and 1984.
    Dutch Gross National Product is expected to rise to 432.20
billion guilders in 1987 in constant prices, a two pct increase
from last year's 423.95 billion.
    The CPB, forecasting an 8.5 pct increase in the value of
the guilder on a trade-weighted basis compared with 10.0 pct
last year, said the dollar was expected to trade at an average
of 2.0 guilders in 1987 compared with 2.45 guilders in 1986.
    "The higher guilder is causing a substantial fall in unit
labour costs abroad, when measured in guilder terms, while
these are rising slightly in the Netherlands," the CPB said.
    More of economic growth now depended on domestic
consumption, the CPB said, but noting that higher margins set
by domestic producers and importers mitigated the effect on
purchasing power of lower import costs and deflation.
    Consumer prices were set to fall by 1.5 pct this year, the
CPB said. Inflation was zero last year.
    Gross investment in industry was expected to grow by five
pct this year, a slowdown compared with 11.5 pct growth last
year, the CPB said.
    Exchange rate and oil price fluctuations will continue to
condition the Dutch economy in the future as it has in recent
years, the CPB said, noting a continued depressing impact of
these factors on Dutch competitiveness.
    In addition, it noted a slight rise in taxation and social
security costs to employers.
    The CPB, forecasting a rise in the budget deficit to 7.2
pct of Net National Income in 1987 from 6.3 pct last year,
urged the government to cut expenditure further to bring down
the deficit and reduce tax and social security payments in
future.
    Dutch government revenue is being depressed further by
falling income from natural gas sales in 1987, the CPB said.
    It said unemployment was expected to fall to 675,000 this
year from 710,000 last year.
    While the two pct GDP growth forecast set by the CPB is
within its latest forecast, issued last month, of 1.5 to two
pct growth, the figure is well above recent market estimates.
    Dutch merchant bank Pierson, Heldring en Pierson said in
its February economic outlook that GDP growth at constant
prices was expected to be 1.1 pct this year and market analysts
had expected the CPB's final forecast to be below its own
latest estimate.
    "It is too early to comment because I haven't seen the whole
document yet, but it would seem we are more pessimistic in some
of our estimates," a Pierson economist said.
    The CPB forecast 2.5 pct export growth in volume terms in
1987, after four pct growth last year. Excluding energy
exports, the 1987 figure would be two pct, it said.
    Imports were set to rise by 4.5 pct this year compared with
four pct in 1986 in volume terms, the CPB said.
    The balance of payments would see a sharp decline in the
surplus, to six billion guilders in 1987 compared with 12.1
billion last year, the CPB forecast.


.I 19443
.C
acq
.W
TRUMP MAKES BID FOR CONTROL OF RESORTS <RTB>.
    NEW YORK, March 9 - Casino owner and real estate developer
Donald Trump has offered to acquire all Class B common shares
of Resorts International Inc, a spokesman for Trump said.
    The estate of late Resorts chairman James M. Crosby owns
340,783 of the 752,297 Class B shares.
    Resorts also has about 6,432,000 Class A common shares
outstanding. Each Class B share has 100 times the voting power
of a Class A share, giving the Class B stock about 93 pct of
Resorts' voting power.
 More

.I 19444
.C
earn
.W
IOMEGA <IOMG> SETS MANAGEMENT, LABOR LAYOFFS.
    ROY, Utah, March 9 - Iomega Corp said it has laid off over
a quarter of its professional and management staff and nearly
half of its direct labor force as part of a restructuring and
downsizing of its business.
    The company also said it will receive a qualified opinion
from the auditors of it 1986 financial statement subject to the
outcome of two suits. The company is a defendant in a
consolidated class action law suit which seeks damages in an
unspecified amount and is also a defendant in a related
shareholder action.
    Iomega said the auditors state in their opinion letter that
both actions are in the early stages of discovery and the
likely outcome can not be determined at this time.
    The company said a corporate wide reduction of its
professional, management and indirect labor will result in the
permanent elimination of 183 positions in all functional areas
of the company's business. This represents over 25 pct of
professional, management and indirect employees, it added.
    In addition, Iomega announced layoff of about 182
employees, principally from its manufacturing direct labor
force. Those affected represent about 46 pct of direct labor.
    Commenting on the layoffs, Iomega said those from among the
direct labor force affects personnel building the Alpha Eight
Inch Disk Drive and Bernoulli Boxes.
    "This action is required as we bring our finished goods
inventory and inventory in our distribution channels down to
acceptable levels," it explained.
    The company stated this layoff does not affect the
production of its new 5-1/4 inch Beta 20 product which is
currently being built to a backlog of orders.


.I 19446
.C
ship
.W
BRAZIL SEAMEN CONTINUE STRIKE DESPITE COURT.
    RIO DE JANEIRO, March 9 - 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
Saturday 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.
 more
    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.


.I 19449
.C
money-fx;gnp;
.W
BONN SERIOUS ABOUT CURRENCY PACT, SAYS TIETMEYER.
    BRUSSELS, March 9 - West Germany takes "very seriously" the
recent undertaking by major industrial countries to promote
exchange rate stability around current levels, Finance Ministry
State Secretary Hans Tietmeyer said.
    Talking to journalists before a meeting of European
Community Economy and Finance Ministers here, Tietmeyer
declined to say whether the February 22 Paris accord by the
Group of Five countries plus Canada included secret agreements
for stabilising currencies.
    But he noted the official communique said the participants
agreed to cooperate closely to foster stability of exchange
rates around current levels. "We're taking this sentence very
seriously," he said.
    Tietmeyer remarked that the dollar had hardly moved against
the mark since the meeting.
    He said a slowdown in West German economic growth had been
caused by sharp exchange rate swings and that the Paris
agreement should help in this respect.
    Economics Ministry State Secretary Otto Schlecht said the
Bonn government saw no current need for measures to bolster the
economy but was paying close attention to the slower growth and
had not ruled out "appropriate and timely" action if necessary.
    Schlecht and Tietmeyer were speaking ahead of a discussion
by the EC ministers of the latest EC Commission report on the
economic situation in the 12-nation bloc.
    The Commission has sharply revised down expected German
gross national product growth this year to two pct from 3.2 pct
predicted last autumn and says Bonn has the most room of any EC
country to stimulate economic activity.
    Schlecht said the upturn in West Germany's economy slowed
in the fourth quarter of last year and the first quarter of
1987. But he said there was no cumulative downwards trend in
view that would make quick remedial action necessary.
    He said a number of favourable indicators such as high
level of investment and a good climate for consumption meant a
recovery could be expected, while exports would pick up
slightly during the course of the year.


.I 19452
.C
coffee
.W
UGANDA DISAPPOINTED BY COFFEE TALKS FAILURE.
    KAMPALA, March 9 - Uganda, Africa's second largest coffee
producer, was disappointed by the stalemate in recent coffee
talks in London, the chairman of the state-run Coffee Marketing
Board, CMB, said.
    "This has not been good for coffee producers, more so in a
situation where the prices dropped by 200 pounds per tonne of
robusta coffee," J. Makumbi said when he returned from London on
Friday.
    Producers and consumers failed to agree on a quota formula
to share the world's coffee production during International
Coffee Organisation, ICO, talks that ended last week.
    Makumbi blamed the failure to set quotas, which were
suspended in Feburary last year, on Indonesian demands that its
quota be increased dramatically.
    Uganda -- which earns about 400 mln dlrs annually from
coffee exports, over 95 pct of its foreign exchange earnings --
had sought to raise its ICO quota to 3.0 mln from 2.45 mln
60-kilo bags, according to sources close to the CMB.
    The CMB has estimated that production will rise 20 to 25
pct in the current 1986/87 October-September season to over
three mln bags.
    For several years Uganda had been unable to meet its ICO
export quota as rebel activity disrupted the coffee industry.
    The Ugandan government depends on coffee export duties for
about 60 pct of its sales tax revenue and the industry employs
over half of salaried manpower.
    In Dar es Salaam, Tanzania's Agriculture and Livestock
Development Minister Paul Bomani said today Third World
countries would suffer from the failure of the London coffee
talks.
    "It is only the middlemen who will benefit, he said.
    Bomani called on the ICO to convene another meeting within
two months, saying, "Once tempers have cooled and delegations
have had time to report back to their headquarters, common
sense will prevail."


.I 19453
.C
acq
.W
****** Chrysler to take over Renault stake in American Motors, says Renault.
Blah blah blah.

.I 19454
.C
meal-feed
.W
ADDITIONAL CCC CREDIT GUARANTEES FOR HUNGARY.
    WASHINGTON, March 9 - The Commodity Credit Corporation,
CCC, has authorized an additional 8.0 mln dlrs in credit
guarantees for sales of vegetable protein meals to Hungary for
fiscal year 1987, the U.S. Agriculture Department said.
    The additional guarantees increase the vegetable protein
meal credit line to 16.0 mln dlrs and increases the cumulative
fiscal year 1987 program for agricultural products to 23.0 mln
dlrs from 15.0 mln, it said.
    The department also announced an extension of the export
period from September 30, 1987, to December 31 for sales of
vegetable protein meals.
    To be eligible for the credit guarantees all sales must be
registered before export but not later than September 30.


.I 19455
.C
earn
.W
******SOUTHERN CO TO TAKE 226 MLN DLR CHARGE ON PROJECTED VOGTLE COST RISE.
Blah blah blah.

.I 19456
.C
acq
.W
APPLIED CIRCUIT<ACRT> SELLS ELECTRONICS BUSINESS.
    ANAHEIM, Calif., March 9 - Applied Circuit Technology Inc
(ACT) said it has agreed in principal to sell its primary
computer electronics business to the <Sanpao Group> of San
Francisco.
    ACT said it has not disclosed the deal's terms, but added
that 50 pct of the sale price is in cash, with the remainder to
be paid over a two year period.
    The deal is expected to close on March 31, ACT said.
    ACT said it made the move to concentrate resources on its
pharmaceuticals subsidiaries.


.I 19457
.C
acq
.W
USAIR <U> ACQUIRES 9.9 PCT OF PIEDMONT <PIE>.
    WASHINGTON, D.C., March 9 - USAir Group Inc said it has
acquired 2,292,599 Piedmont Aviation Inc shares, about 9.9 pct
on a fully diluted basis, from Norfolk Southern Corp <NSC>.
    The acquisition of Piedmont by USAir has been approved by
the directors of both companies.
    USAir said it has been advised by Norfolk Southern that the
company supports the proposed merger and intends to tender all
of its remaining 1,477,829 Piedmont common shares in response
to USAir's tender offer which began today. This total includes
shares issuable upon conversion of Piedmont preferred, USAir
noted.
    USAir said Piedmont has about 23.1 mln common shares on a
fully diluted basis, adding its offer is conditioned on the
tender of at least 9,309,394 shares, representing 40.2 pct of
the oustanding shares on a diluted basis.
    USAir said the 3,491,030 new shares it has an option to buy
represent 18.5 pct of Piedmont's currently outstanding shares.


.I 19458
.C
coffee
.W
BRAZILIAN COFFEE RAINFALL.
    SAO PAULO, MARCH 9 - THE FOLLOWING RAINFALL WAS RECORDED IN
THE AREAS OVER PAST 72 HOURS
    PARANA STATE: UMUARAMA NIL, PARANAVAI 1.5 MILLIMETRES,
LONDRINA NIL, MARINGA NIL.
    SAO PAULO STATE: PRESIDENTE PRUDENTE O.6 MM, VOTUPORANGA
12.0 MM, FRANCA 28.0 MM, CATANDUVA 10.0 MM, SAO CARLOS NIL, SAO
SIMAO NIL. REUTER11:43/VB

.I 19459
.C
acq
.W
******GENCORP TO SELL LOS ANGELES TELEVISION STATION TO WALT DISNEY CO.
Blah blah blah.

.I 19460
.C
acq
.W
NATIONWIDE CELLULAR <NCEL> COMPLETES PURCHASE.
    VALLEY STREAM, N.Y., March 9 - Nationwide Cellular Service
Inc said it has completed the previously-announced acquisition
of privately-held Nova Cellular Co, a Chicago reseller of
mobile telephone service with 1,800 subscribers, for about
65,000 common shares.
    Nova Cellular has an accumulated deficit of about 650,000
dlrs and had revenues of about 2,600,000 dlrs for 1986, it
said.


.I 19461
.C
interest
.W
NATIONAL WESTMINSTER BANK CUTS BASE RATE.
    LONDON, March 9 - National Westminster Bank Plc said it has
cut its base lending rate  0.5 percentage points to 10.5 pct
today.
    National Westminster said it was responding to general
easing in money market rates.
    Its move followed a signal from the Bank of England earlier
this afternoon that it would endorse a half point cut in the
base rate, a surprise move following its strong signals last
week that such a move would be premature.
    However, since then the pound has continued to gain
strongly.


.I 19462
.C
money-fx;interest;
.W
U.K. MONEY MARKET GIVEN FURTHER HELP AT NEW RATES.
    LONDON, March 9 - The Bank of England said it provided the
market with further assistance during the afternoon, buying
bills worth 166 mln stg at the lower rates introduced this
morning.
    It bought 45 mln stg of local authority bills plus 27 mln
stg of bank bills in band one at 10-3/8 pct together with 94
mln stg of band two bank bills at 10-5/16 pct.
    The bank also revised its estimate of the market shortage
up to 300 mln stg from 250 mln this morning. It has given total
assistance of 213 mln stg today.


.I 19464
.C
ship
.W
HUTCHISON UNIT BUYS CONTAINER CRANES FROM JAPAN.
    HONG KONG, March 9 - Container port operator, <Hong Kong
International Terminals Ltd>, a 89 pct held unit of Hutchison
Whampoa Ltd <HWHH.HK>, said it has placed a 164 mln H.K. Dlr
order for seven quayside container cranes of 800 tons each with
Japan's Mitsui Engineering and Shipbuilding Co Ltd <MSET.T> for
May 1988 to August 1989 delivery.
    Hong Kong International Terminals operates 32 cranes.


.I 19465
.C
ship
.W
BOSPHORUS SHIPPING MOVES, ISTANBUL OFFICES CLOSE.
    ISTANBUL, March 9 - Istanbul remained at a virtual
standstill today under snow up to a meter deep but shipping was
moving through the narrow Bosphorus waterway linking the Sea of
Marmara and the Black Sea, officials said.
    The authorities ordered government offices closed until
Wednesday. Many banks, businesses and schools stayed shut as
workers struggled to keep main roads and supply lines open in
this city of 6.5 mln people.
    The second blizzard to hit Istanbul in a week stopped
yesterday afternoon and the international airport reopened
today after a two-day closure. It was also shut earlier last
week.


.I 19466
.C
crude
.W
ECUADOR TO EXPORT NO OIL FOR 4 MONTHS, OFFICIAL.
    By WALKER SIMON, Reuters
    QUITO, March 9 - 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.


.I 19467
.C
money-supply
.W
******FRENCH JAN M-3 MONEY SUPPLY ROSE PROV ADJUSTED ONE PCT (O.7 PCT FALL IN DEC) - OFFICIAL.
Blah blah blah.

.I 19469
.C
rubber
.W
MALAYSIA SAYS RUBBER PACT DEPENDS ON CONSUMERS.
    KUALA LUMPUR, March 9 - Malaysia said the success of talks
opening today on a new International Natural Rubber Agreement
(INRA) depends on how flexible consumer countries are.
    Rubber producer and consumer countries meet for 12 days in
Geneva from tomorrow to try to hammer out a rubber pact after
they failed to reach agreement last November to replace the
current accord, which expires next October.
    Primary Industries Minister Lim Keng Yaik said in a
statement that Malaysia wants to continue with a second INRA
and is prepared to accept modifications that would strengthen
the present agreement.
    He said the second INRA would allow for an orderly disposal
of the accumulated buffer stock of 375,000 tonnes, since the
market is now capable of absorbing such releases.


.I 19471
.C
acq
.W
MCDOWELL <ME> TO MERGER WITH <INTERPHARM INC>.
    NASHVILLE, Tenn., March 9 - McDowell Enterprises Inc said
it has signed a definitive agreement to acquire an 80 pct
interest in privately held Interpharm Inc for a 19.9 pct
interest in McDowell.
    The company said subject to contigencies, including future
sales and profit levels, McDowell could over a four-year period
acquire 100 pct of Interpharm in exchange for up to 51 pct of
McDowell's voting stock.
    It said the transaction is expected to be completed within
60 days, at which time the McDowell board would be restructured
to include Interpharm management. 


.I 19474
.C
acq
.W
RENAULT, CHRYSLER IN ACCORD FOR CHRYSLER TO BUY AMC.
    PARIS, March 9 - Regie Nationale des Usines Renault
<RENA.PA> said it and Chrysler Corp <C> have signed a letter of
intent in which Chrysler plans to buy American Motors Corp
<AMO.N>, 46 pct owned by Renault.
    Renault President Raymond Levy said in a statement issued
by the French state car group the agreement was an important
stage in Renault's redeployment. "It will allow Renault to
continue its export programme to the U.S. And also opens a
perspective of cooperation with a major American constructor,"
the statement said. Under the terms of the letter of intent,
Chrysler will purchase Renault's stake held in the form of
bonds and shares.
    The Renault statement quoted Chrysler Chairman Lee Iacocca
as saying, "We welcome AMC shareholders into the Chrysler
family."
    He added that the accord would allow Renault and Chrysler
to study the development of future products destined to be
distributed by Renault and Chrysler in the North American and
world markets.
    "Renault is a leader in our industry and I am happy to be
working with them," Iacocca was quoted as saying.
    Chrysler will pay for Renault's AMC interests held in bonds
by a 200 mln dlr bond and will pay up to 350 mln dlrs for
Renault share interests, depending on AMC sales and future
profits, the Renault statement said.
    The statement said the agreement in principle gave each
side 30 days to put together a definitive accord. Approval
would also be necessary from the Renault, Chrysler and AMC
boards, from AMC shareholders and the relevant government
authorities.
    If the deal goes ahead, the statement said, AMC
shareholders other than Renault will receive Chrysler shares
for each of their shares valued at four dlrs.
    AMC shareholders with convertible preferential shares will
have the possibility to exchange them for Chrysler shares on
the same conditions as those they would have had in exchanging
them for AMC shares.


.I 19475
.C
hog;livestock;
.W
HOG AND CATTLE SLAUGHTER GUESSTIMATES.
    CHICAGO, March 9 - Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 285,000 to 300,000 head versus
292,000 week ago and 309,000 a year ago.
    Cattle slaughter is guesstimated at about 125,000 to
131,000 head versus 129,000 week ago and 119,000 a year ago.


.I 19478
.C
money-fx;interest;
.W
****** Bank of France said it cut money market intervention rate to 7-3/4 pct from eight pct.
Blah blah blah.

.I 19479
.C
acq
.W
******FIRST BOSTON AFFILIATE TO ACQUIRE ALLEGHENY INT'L FOR 24.60 DLRS/SHR.
Blah blah blah.

.I 19480
.C
earn
.W
SOUTHERN <SO> TO TAKE CHARGE ON VOGTLE COST.
    ATLANTA, March 9 - Southern Co said it will take an
after-tax charge of 226 mln dlrs against earnings no later than
January 1988 because the projected cost of the Vogtle nuclear
power plant has risen abover the amount which retail customers
in Georgia will be asked to pay.
    The company's largest subsidiary, Georgia Power Co, said
the budget for the plant has increased by 6.3 pct, or 522 mln
dlrs, to 8.87 billion. However, because of a pledge the made
last year to Georgia's Public Service Commission, the increased
cost will not be included in the utility's retail electric
rates.
    Geogia Power also said its board has delayed the scheduled
completion of Vogtle's Unit Two to June 1989 from September
1988. Unit Two is about 60 pct complete, it added.
    The utility said fuel loading has been completed at Unit
One and the unit is being put through a series of low-power
tests before the Nuclear Regulatory Commission is asked for a
full-power license.
    The nuclear power plant, located near Waynesboro, Ga., is
co-owned by <Oglethorpe Power Corp>, the Municipal Electric
Authority of Georgia and the city of Dalton.
    Georgia Power said the revised Vogtle budget estimate was
due to several factors, including additional labor costs
incurred to keep the plant's first unit on schedule for
commercial operation by June. The new figure represents the
first change in the plant's budget since August 1985, when it
was estimated at 8.35 billion dlrs.
    In March 1986, the utility told Georgia regulators it would
"cap" the price of Vogtle its customers would be asked to pay
at 3.56 billion dlrs, the company's share of the then projected
8.35 billion dlr total. Under the new budget, Georgia Power
said, its share amounts to 3.87 billion dlrs.
    Noting that Georgia Power's share of the Vogtle increase is
313 mln dlrs, Southern said this will result in a charge
against earnings of 177 mln dlrs after taxes.
    In addition, the company said, Georgia Power's contracts
with the joint owners require the utility to buy back
significant amounts of Vogtle capacity during the plant's
initial years of operation. Under terms of the cap on costs, it
will not attempt to recover the portion of the budget increase
that applies to the buybacks.
    This bings the total amount that must be charged against
earnings to 2326 mln dlrs after taxes, Southern said.
    Southern said new rules of the Financial Accounting
Standards Board, which are effective in January 1988, require
any costs that are determined nonrecoverable to be charged
against earnings once that determination is made.
    The company also said its board has approved a capital
budget of 2.1 billion dlrs in 1987, including work on the
Vogtle project.
    It said a 5.9 billion dlr capita budget for the three-year
period 1987-1989 was also outlined at the board meeting, noting
this is 700 mln dlrs below the comparable figure for the years
1986-1988.


.I 19481
.C
acq
.W
STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER.
    STOCKHOLM, March 9 - Sweden's Stora Kopparbergs Bergslags
AB <SKPS ST> said it had now acquired 90 pct of shares in rival
pulp and paper makers Papyrus AB, thus passing the threshold
above which it can compulsorily buy the rest of the company.
    Remaining shareholders would have until later this month to
sell their shares to Stora, the company said in a statement.
    Stora announced last September it would acquire Papyrus at
a price of 5.8 billion crowns, thus forming Europe's second
largest forest group after London-based Reed International Plc
<REED L>.


.I 19483
.C
dlr;money-fx;gnp;bop;crude;trade;
.W
OECD TRADE, GROWTH SEEN SLOWING IN 1987.
    LONDON, March 9 - The 24 nations of the Organisation for
Economic Cooperation and Development (OECD), hampered by
sluggish industrial output and trade, face slower economic
growth, and their joint balance of payments will swing into
deficit in 1987, the Economist Intelligence Unit (EIU ) said.
    The EIU said in its World Trade Forecast it revised OECD
economic growth downwards to 2.5 pct this year, compared with a
2.8 pct growth forecast in December.
    It said the new areas of weakness are West Germany and the
smaller European countries it influences, and Japan, hardest
hit by currency appreciation this year.
    The independent research organisation cut its 1987 growth
rate forecasts for West Germany to 2.2 pct from 3.2 pct in
December and to 2.3 pct from three pct for Japan.
    It said it expected the OECD to post a current account
deficit of some 13 billion dlrs in both 1987 and 1988, due in
large part to a 1.50 dlrs a barrel rise in 1987 oil prices.
    It said the U.S. Current account deficit looked likely to
fall even more slowly than forecast, to 125 billion dlrs in
1987 and 115 billion in 1988 from 130 billion in 1986.
    It said it expected West Germany to post a 31 billion dlr
payments surplus and Japan a 76 billion dlr surplus this year.
    The EIU said it saw oil prices dropping to around 16.50
dlrs a barrel by end-1987 and 15.50 dlrs in 1988 from about 18
dlrs last year, as adherence to OPEC output policy becomes
increasingly ragged.
    It said the dollar is poised to resume its decline in
foreign exchange markets, and will lose a further 13 pct on its
trade-weighted index this year and five pct in 1988 after last
year's 18.4 pct drop.
    The average mark/dollar rate is put at 1.80 marks this year
and 1.70 in 1988 while the yen/dollar rate is expected to break
through the 150 yen barrier with an average value of 150 yen in
1987 and 146 yen in 1988, it said.
    "This is not a crash scenario but the dollar's steeper angle
of descent increases the risk of ending with a fireball rather
than a three-point landing," the EIU said.
    "Talking will not stop the dollar's slide for long and the
February meeting (of finance ministers of the Group of Five and
Canada) produced scant promise of either a decisive shift to
more expansive policies in West Germany and Japan, or a tighter
U.S. Fiscal policy," it said.
    It said the key to the dollar's fortunes was the
willingness of Japanese institutions to buy U.S. Government
assets despite prospects of sustaining a currency loss.
    "Thus far they have been willing," the EIC said, adding that
if Japan was deterred from buying U.S. Bonds the dollar would
collapse.
    To contain such a currency crisis, dollar interest rates
would have to soar, bringing recession and a Third World debt
crisis, it said.
    On trade, the EIU said prospects for 1987 look "increasingly
sick."
    Import growth, forecast in December at 4.5 pct, is now seen
slowing down to around 3.8 pct in 1987 with a recovery only to
4.2 pct in 1988, it said.
    The weakness of the West German economy is the biggest
single factor, with import growth there expected to feature a
sluggish 3.5 pct growth in 1987 against the 6.5 pct forecast in
December, the EIU said.
    On the export side, it said it saw weak demand in West
Germany affecting export prospects elsewhere in Europe, while
Japan's exports in 1987 would remain flat and sales by U.S.
Exporters would respond only marginally to a lower, more
competitively-priced dollar.
    It said in most of Europe and in Japan, raw materials and
oil will cost less in domestic currency in 1987 than in 1986.
    However, rates of inflation will edge up in 1988 to over
the current OECD average of three pct. Non-oil commodity prices
will show a modest dollar price increase in 1988 for the first
time since 1984, the EIU said.
    After a rise of 18 pct in 1986, the dollar price of
internationally traded manufactures will go up by 8.5 pct in
1987 and by five pct in 1988, it said.
    It said OECD industrial production would rise by only 1.6
pct in 1987 after a weak 1.5 pct increase in 1986.


.I 19485
.C
money-fx
.W
U.K. MONEY MARKET GIVEN LATE HELP WORTH 15 MLN STG.
    LONDON, March 9 - The Bank of England said it provided the
market with unspecified late assistance worth 15 mln stg.
    It has given the market total assistance of 228 mln stg
today compared with a liquidity shortage it estimated at a
revised 300 mln stg.


.I 19486
.C
money-fx;interest;
.W
BANK OF FRANCE CUTS INTERVENTION RATE.
    PARIS, March 9 - The Bank of France said it cut its money
market intervention rate to 7-3/4 pct from eight pct when it
injected money against first category paper.
    The bank also cut its seven-day repossession rate to 8-1/2
pct from 8-3/4 pct.
    The intervention rate has stood at eight pct since it was
raised from 7-1/4 pct on January 2 as the French franc came
under pressure ahead of the EMS realignment on January 11.
    The bank said the purchase, effective tomorrow, is for five
pct of private paper and fixed rate Treasury bills maturing
between March 25 and June 25 and of other Treasury bills
maturing between March 25, 1987 and March 25, 1989.
    The rate cut had been expected since the bank announced a
money market intervention tender earlier today.
    Money market dealers said conditions seemed right for a
quarter percentage point cut, reflecting an easing in the call
money rate last week, and the French franc's steadiness on
foreign exchange markets since the February 22 currency
stabilisation accord here by the Group of Five and Canada.


.I 19487
.C
acq
.W
WHITE ENGINE BOUGHT BY PRIVATE INVESTOR.
    CANTON, Ohio, March 9 - White Engine, a manufacturer of
industrial and automotive diesel and gasoline engines with more
than 100 mln dlrs in sales, said it has been sold to a group of
group investors.
    White Engine said the purchase is led by Donald Stewart, a
private investment banker, along with White senior executives.
    A source close to the transaction said the purchase prices
is being set at more than 55 mln dlrs.
    The company said it will change its name to Hercules
Engines Inc, and Stewart will be the majority interest owner,
as well as the president and chief executive officer.
    In addition, John Lennon, current chairman and chief
executive officer, will remain as chairman, he company said.
And Joseph G. Scheetz, currently president, will be vice
chairman, according to the company.


.I 19489
.C
acq
.W
STORA CLOSE TO COMPLETING PAPYRUS TAKEOVER.
    STOCKHOLM, March 9 - Sweden's Stora Kopparbergs Bergslags
AB <SKPS.ST> said it has now acquired 90 pct of shares in rival
pulp and paper makers Papyrus AB, thus passing the threshold
above which it can compulsorily buy the rest of the company.
    Remaining shareholders would have until later this month to
sell their shares to Stora, the company said in a statement.
    Stora announced last September it would acquire Papyrus at
a price of 5.8 billion crowns, thus forming Europe's second
largest forest group after London-based Reed International Plc
<REED L>.


.I 19490
.C
acq
.W
ALLEGHENY INT'L <AG>, FIRST BOSTON SET MERGER.
    PITTSBURGH, March 9 - Allegheny International Inc said it
has entered into an agreement to merge with an affiliate of
First Boston Inc's <FPC> First Boston Corp in a transaction
valued at about 500 mln dlrs.
    Allegheny said the agreement calls for holders of its
common to receive 24.60 dlrs a share. Holders of the company's
2.19 dlrs cumulative preference shares will receive 20 dlrs a
share and those owning its 11.25 dlrs convertible preferred
will receive 87.50 dlrs a share.
    Allegheny International said the agreement calls for the
First Boston affiliate to start a cash tender offer for all
outstanding shares of Allegheny's common, cumulative preferred
and convertible preferred.
    The company said First Boston has committed to provide all
financing necessary to acquire such securities in the tender
offer which is estimated to be about 500 mln dlrs.
    It said the agreement is also subject to the waiver by
March 13 of certain conditions under the company's existing
bank credit agreement.
    Allegheny International's statement did not name or
describe the First Boston affiliate involved in the agreement.
    It did say the offer for the company's stock will be
conditioned also on the valid tender of securities representing
at least a majority of the voting power for the election of
directors of the company and the valid tender of at least two
third's of the outstanding cumulative preferred and convertible
preferred shares.
   


.I 19491
.C
money-supply
.W
FRENCH JANUARY M-3 MONEY SUPPLY RISES ONE PCT.
    PARIS, March 9 - French money supply, measured in terms of
M-3, rose a provisional one pct in January after falling 0.7
pct in December, the Bank of France said.
    M-3 is the main money supply aggregate used by the French
monetary authorities. It has been joined as a second main money
supply aggregate for 1987 by M-2, which rose a provisional 1.2
pct in January after falling a confirmed 0.9 pct in December.
    Calculated on a three-month moving average basis, M-3 rose
4.4 pct year-on-year in the quarter based on December after
rising 5.4 pct in the quarter centred on September.
    The M-2 aggregate, centred on a three-month moving average,
rose year-on-year by four pct, within a 1987 target range of
four to six pct.
    M-1 rose 2.5 pct after a 1.1 pct fall in December. M-1
measures notes and coins in circulation plus sight deposits.
    M-2 adds in short-term bank deposits and M-3 adds in other
short-term deposits.
    The central bank's widest measure of liquidity, L, rose 1.5
pct in January after one pct fall in December. The bank said
the money supply growth reflected a net increase of sight
deposits and renewed interest in money market instruments.


.I 19492
.C
acq
.W
*****CHRYSLER SAYS AMC HOLDERS TO GET CHRYSLER STOCK WORTH FOUR DLRS A SHARE UNDER BUYOUT PLAN.
Blah blah blah.

.I 19494
.C
dlr;money-fx;dmk;
.W
TURKISH CENTRAL BANK SETS LIRA/DOLLAR, DM RATES.
    ANKARA, March 9 - The Turkish Central Bank set a
Lira/Dollar rate for March 10 of 773.05/776.92 to the Dollar,
down from the previous 769.60/773.45.
    The Bank also set a Lira/Mark rate of 417.20/419.29 to the
Mark, up from the previous 419.15/421.25.

.I 19495
.C
earn
.W
CONTINENTAL BANK/CANADA SETS DISTRIBUTION.
    TORONTO, March 9 - Continental Bank of Canada, a subsidiary
of Lloyds Bank PLC <LLOY.L>, said it intends to redeem all
existing preferred shares and distribute a stock dividend to
common shareholders.
    The initial distribution will be in cumulative redeemable
retractable floating rate class A preferred shares series II,
which will carry a retraction right enabling holders to receive
12.75 dlrs for each share.
    Continental said the 58.6 mln dlrs of existing outstanding
preferred shares will be paid off at par plus accrued dividends.
     Continental said the notes will carry a dividend rate of
72 pct of prime and it expects that the shares will trade at
12.75 dlrs or more, enabling shareholders who wish to receive
cash to do so.
    The bank said it expects the distribution will be made in
early May, subject to various approvals.
    Continental also said that, as of March 2, it had cash of
more than 250 mln dlrs and equity of about 284.6 mln dlrs,
allowing for a final total distribution of 16.60 dlrs per
common share.
    Continental Bank said it continues to expect that the final
distribution to shareholders will be in the range of 16.50 dlrs
to 17.25 dlrs per share and will take place in late 1988 or
early 1989.
    Until the initial stock distribution takes place, regular
dividend payments will be maintained on the existing preferred
shares, the bank said.
    The distribution is part of the terms of Continental Bank
of Canada's sale of its banking assets to Lloyds Bank Canada, a
subsidiary of Lloyds Bank PLC.
    Continental Bank said Lloyds Bank Canada paid the balance
of the purchase price but that it was lower than originally
anticipated since Continental was unable to transfer certain
income tax deductions to Lloyds Bank. Continental did not give
further details.
 More

.I 19496
.C
trade
.W
STUDY SAYS U.S., CANADA PACT WOULD SPUR ECONOMIES.
    WASHINGTON, March 9  - A free trade pact between the United
States and Canada could spur the economies of both sides
substantially, according to a study released by the Institute
for International Economics.
    The study, by Paul Wonnacott, said a successful conclusion
to the free trade talks now under way could raise Canada's
gross national product by more than five pct and expand U.S.
export's by about seven pct.
    He said the pact could resolve the knotty issue of
government subsidies, end curbs on trade in services and
investments and pave the way for new global talks under the 
General Agreement on Tariffs and Trade.
    The United States and Canada - the world's two biggest
trading partners with cross border shipments of about 150
billion dlrs a year - opened free trade talks last June. They
are aiming for a pact by next October.
    Wonnacott, an economics professor at the Univerity of
Maryland, said an agreement should include:
    - Elimination of tariffs between the two countries, phased
in over a five to 10-year period;
    - Equal access to federal government procurement in the two
countries, replacing current "Buy America" and "Buy Canada"
provisions with a "Buy North America" provision;
    - Fewer restrictions in trade in services, chiefly finance
and transportation;
    - A commitment not to screen foreign investments in favor
domestic producers;
    - A commission to resolve bilateral trade disputes.
     Wonnacott said that to resolve the subsidy problem, the
two sides should permit export subsidies of exports of up to
2.0 or 2.5 pct without imposing coutervailing duties.
    The limit on subsidies is now 0.5 pct.
    He proposed that any attempt to impose new duties to offset
subsidies should go first a special disputes commission for
resolution at an early stage.
    Wonnacott said "bilateral free trade would contribute to the
efficiency of the North American economies and to their
competitiveness in facing overseas producers.
    He said it would it would open U.S. markets to Canadian
goods and enable them to benefit from the economies of mass
production.
    Benefits to the United States would be fewer than those to
Canada proportionately, he said, because of the already large
U.S. gross national product.
    Wonnacott said also that a U.S.-Canada pact in such areas
as export subsidies and the creation of a dispute commission
could set an example for the current attempt by GATT to write
new and more liberal global trading regulations.


.I 19498
.C
earn
.W
GULF RESOURCES <GRE> TO HAVE GAIN ON STOCK SALE.
    BOSTON, March 9 - Gulf Resources and Chemical Corp said it
has sold 9,534,633 shares of <Imperial Continental Gas
Association> for 720 pence a share, or 68.6 mln stg, in a
private transaction for a pretax gain of about 19.6 mln dlrs.
    Gulf Resources said it still owns 6.7 mln shares of
Imperial Continental, or a 4.6 pct interest, and continues to
study various alternatives.


.I 19500
.C
oilseed;grain;
.W
ROTTERDAM GRAIN HANDLER SAYS PORT BALANCE ROSE.
    ROTTERDAM, March 9 - Graan Elevator Mij said its balance in
port of grains, oilseeds and derivatives rose to 136,000 tonnes
on March 7 from 31,000 a week earlier, after arrivals of
523,000 tonnes and discharges of 418,000 tonnes last week.
    The balance comprised 38,000 tonnes of grains and oilseeds
and 98,000 tonnes of derivatives.
    This week's estimated arrivals total 194,000 tonnes, of
which 45,000 are grains/oilseeds and 149,000 derivatives.
    The figures cover around 95 pct of Rotterdam traffic in the
products concerned.


.I 19501
.C
acq
.W
******DONALD TRUMP SAID HE HAS AGREED TO PURCHASE CROSBY ESTATE'S RESORTS SHARES.
Blah blah blah.

.I 19502
.C
grain;meal-feed;livestock;carcass;soy-meal;
.W
U.K. AGRICULTURAL FUTURES MARKETS TO MERGE.
    LONDON, March 9 - Three London markets which trade potato,
soymeal and meat futures said they will merge to form a new
Agricultural Futures Exchange.
    Legal advisers have been instructed to implement the
amalgamation of the London Potato Futures Association, LPFA,
the London Meat Futures Exchange, LMFE, and the Grain and Feed
Trade Association's, GAFTA, Soya Bean Meal Futures Association,
SOMFA. No timetable was given.
    Members of the three exchanges have been consulted,
Agricultural Futures Exchange secretary Bill Englebright told
Reuters, and no objections have been raised to the merger.
    Three markets are involved at present but the new exchange
could ultimately combine five markets.
    Discussions are taking place with the Baltic International
Freight Futures Exchange, BIFFEX, and the GAFTA London Grain
Futures Market is considering the possibility of joining the
other markets, market officials said.
    The BIFFEX board is expected to reach a decision on the
merger at its meeting at the end of this month, after members
are consulted at a meeting on March 16.
    The grain futures market also intends to consult its
members soon, GAFTA director general James Mackie said.
    The aim of the amalgamation is to limit regulatory and
administrative costs and achieve the recognition required under
the 1986 Financial Services Act. This legislation requires a
futures market to become a Recognised Investment Exchange, RIE,
for trading to continue.
    Representatives of all the futures markets on the Baltic
Exchange have been discussing the possibility of a single RIE
structure since the beginning of the year.
    The new exchange now planned will apply to the Securities
and Investments Board for recognition as an RIE "at the
appropriate time," the Agricultural Futures Exchange said.
    "This commitment by the markets will enable progress to be
made to develop a stronger and more effective exchange to the
benefit of all those involved in the industry," the chairman of
the formation committee, Pat Elmer, said.
    The merged markets will remain at the Baltic Exchange.


.I 19503
.C
acq
.W
BSN <BSN> SHARE SALE ADVANCES.
    DALLAS, March 9 - BSN Corp said its agreement to sell
1,750,000 new common shares, or a 25 pct interest, to 31
unaffiliated European institutional investors for 30.4 mln dlrs
has become definitive.
    The company said closing is expected shortly after the
filing of a registration statement with the Securities and
Exchange Commission, which is expected to be made this month.


.I 19504
.C
interest
.W
******BARCLAYS BANK SAID IT CUTTING BASE LENDING RATE TO 10.5 PCT FROM 11 PCT.
Blah blah blah.

.I 19505
.C
interest
.W
*******MIDLAND BANK SAID IT CUTTING ITS BASE RATE TO 10.5 PCT FROM 11 PCT.
Blah blah blah.

.I 19507
.C
earn
.W
A.H. ROBINS'S <QRAH> JANUARY EARNINGS UP.
    RICHMOND, Va., March 9 - A. H. Robins Co, the drug company
in bankruptcy proceedings due to litigation over its Dalkon
Shield contraceptive device, reported consolidated net earnings
for the month ended January 31 of 17.3 mln dlrs.
    In the corresponding year-ago period it reported net
earnings of 13.8 mln dlrs.
    Robins said the filings were made with the U.S. trustee
overseeing its chapter 11 bankruptcy case.


.I 19508
.C
interest
.W
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT.
    LONDON, March 9 - Barclays Bank Plc <BCS.L> and Midland
Bank Plc <MDBL.L> said they are cutting their base lending
rates to 10.5 pct from 11 pct. The cuts follow a similar move
by National Westminster Bank Plc <NWBL.L>
    The rate changes take effect tomorrow.


.I 19509
.C
acq
.W
CONTROL DATA <CDA> TO BUY PERIPHERALS STAKE.
    MINNEAPOLIS, Minn., March 9 - Control Data Corp said it
agreed to acquire Unisys Inc's <UIS> 13 pct stake in <Magnetic
Peripherals Inc>.
    The letter of intent provides that Unisys converts from an
owner in Magnetic Peripherals to a customer of Control Data's
data storage products group over a two year period.
    Under the agreement, Control Data will continue to furnish
disk drives to Unisys, it said.
    No other details of the proposed agreement were available.
    Magnetic Controls, managed by the data storage products
group of Control Data, was founded in 1975 as a joint venture
to maintain a technological base in data storage, and supply
peripheral equipment for the computer systems of its owners.
    The venture has become a developer and manufacturer of high
performance, high-capacity data storage products sold by
Control Data to computer systems manafacturers worldwide, it
said.
    After conversion of the Unisys interest, Control Data will
own 80 pct, Honeywell Inc <HON>, 14 pct and Bull S.A. of
France, six pct, it said.


.I 19510
.C
acq
.W
USAIR <U> WINS COURT ORDER AGAINST TWA <TWA>.
    PITTSBURGH, March 9 - USAir Group Inc said a U.S. District
Court in Pittsburgh issued a temporary restraining order to
prevent Trans World Airlines Inc from buying additional USAir
shares.
    USAir said the order was issued in response to its suit,
charging TWA chairman Carl Icahn and TWA violated federal laws
and made misleading statements.
    TWA last week said it owned 15 pct of USAir's shares. It
also offered to buy the company for 52 dlrs a share cash or 1.4
billion dlrs.
 More

.I 19511
.C
acq
.W
GREASE MONKEY <GMHC> GETS, REJECTS MERGER OFFER.
    DENVER, March 9 - Grease Monkey Holding Corp said it has
received and rejected an unsolicited merger offer from Jiffy
Lube International Inc <LUBE>.
    The company said the proposal involved an exchange of
Grease Monkey common stock for a combination of Jiffy Lube
securities with an estimated current value substantially below
Grease Monkey's current market
 price.
    It said it will not disclosed details.


.I 19513
.C
orange
.W
U.S. RULING ON BRAZIL FCOJ MAY COME TOMORROW.
    WASHINGTON, March 9 - A decision on final dumping duties on
frozen orange juice from Brazil may not be issued until
tomorrow, Commerce Department officials said.
    They said the department has until midnight tonight to set
the duty but may not make the finding public until tomorrow.
    A preliminary duty of 8.54 pct was set October 17, 1986.
    The final ruling will be based on more detailed
information, the officials said.


.I 19515
.C
acq
.W
CHRYSLER <C> IN DEAL TO BUY AMC <AMO>.
    DETROIT, March 9 - Chrysler Corp said it agreed in
principle with French state-owned Renault to acquire American
Motors Corp., in which Renault is controlling shareholder,
under a deal in which AMC stockholders other than Renault would
receive Chrysler common stock with a market value of four dlrs
for each AMC common share they hold.
    Chrysler said the letter of intent for the deal, which
needs government and AMC shareholder and board approval,
provides that AMC holders will receive not more than .0840 or
less than .0687 of a share of Chrysler common for each share of
AMC common they hold.
 more

.I 19518
.C
interest
.W
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT.
    LONDON, March 9 - Barclays Bank Plc <BCS.L> and Midland
Bank Plc <MDBL.L> said they are cutting their base lending
rates to 10.5 pct from 11 pct. The cuts follow a similar move
by National Westminster Bank Plc <NWBL.L>
    The rate changes take effect tomorrow.
    The base rate reductions came after the Bank of England cut
its dealing rates this morning in a signal to the money markets
that it would not resist a half percentage point drop in bank
base lending rates, market sources said.
    Until the end of last week, the central was holding out
staunchly against market pressures for lower rates in an
apparent effort to preserve the expected rate cuts for around
the time of the government's annual Budget on March 17.
    Sterling remained firm around 1.59 dlrs compared with its
close here on Friday at 1.5865 dlrs.


.I 19519
.C
zinc
.W
U.S. MINT SEEKING 4,784,000 LBS ZINC.
    WASHINGTON, March 9 - The U.S. Mint said it is seeking
offers on 4,784,000 lbs of special high-grade zinc that it
intends to purchase.
    It said selling offers will be due at 1100 hrs EST, March
24.
    The Mint said two increments of 1,300,000 lbs each are for
delivery the weeks of April 13 and april 20 to Ball Corp,
Greeneville, Tenn., and two increments of 1,092,000 lbs each
are to be delivered the weeks of April 20 and April 27 to
LaSalle Rolling Mills, LaSalle, Ill.
    Firms, in submitting offers, may elect to receive payment
from the Mint by standard check or by wire transfer. Awards
will be based on whichever method is most cost advantageous to
the goverment at the time the awards are determined.
    The offers will have a minimum acceptance period of 10
calendar days, the Mint said.


.I 19520
.C
housing
.W
CANADA BUILDING PERMITS RISE IN NOVEMBER.
    OTTAWA, March 9 - Led by the non-residential sector,
Canadian building permits issued in November rose 0.7 pct to
2.18 billion dlrs, seasonally adjusted, from 2.16 billion dlrs
in October, Statistics Canada said.
    Residential permits fell 3.9 pct to 1.25 billion dlrs from
1.30 billion dlrs in October while the number of units approved
fell to 17,552 from 19,079 units.
    The value of non-residential projects rose 7.6 pct to 927.6
mln dlrs in the month.


.I 19522
.C
acq
.W
DIXIE YARNS <DXYN> TO ACQUIRE TI-CARO INC.
    CHATTANOOGA, Tenn., March 9 - Dixie Yarns Inc and <TI-CARO
Inc> jointly said they signed a merger agreement calling for
Dixie to acquire all TI-CARO's stock in exchange for three mln
of Dixie's common.
    The companies said the previously announced merger has been
approved by TI-CARO's board and is expected to close by early
April.
    They said the revenues of the combined companies will be
over 600 mln dlrs, and Dixie said the merger will not dilute
its 1987 results. TI-CARO was taken private in 1984 in a
management led leveraged buy-out.


.I 19525
.C
rubber
.W
RUBBER LEAF DISEASE SEEN AFFECTING SUPPLY/PRICES.
    KUALA LUMPUR, March 10 - The leaf disease corenes pora,
which has affected some rubber trees in Sri Lanka and
Indonesia, is likely to force a cut in supply and push up
depressed prices, a Malaysian rubber disease researcher said.
    Trees with leaves hit by the fungus disease cannot be saved
and must be felled, Chee Kheng Hoy, Head of the Crop Protection
and Microbiology Division in the Rubber Research Institute of
Malaysia (RRIM), told Reuters.
    He was commenting on a Reuter report which said corenes
pora had hit seven pct of Sri Lanka's plantations and may cause
output to drop below its 1987 target of 143,000 tonnes.
    The report said the Sri Lankan Rubber Research Institute
may ask estates to remove trees seriously affected by the
disease and added that most estates affected belong to the
State Plantations Corp and Janatha Estates Development Board.
    Chee said corenes pora is an old disease which only affects
certain rubber clones in Sri Lanka and Indonesia and that
further use of such clones must be discontinued.
    Clones not resistant to the disease are the Rubber Research
Institute of Sri Lanka clone 103, Indonesia's PPN 2058, 2444,
2447 and PR 265 and Malaysia's RRIM 725, he said.
    Chee said corenes pora affected trees from the RRIM 725
clone planted in Malaysia several years ago but had been curbed
after use of such clones were discontinued.
    Fungicide may be used to curb the disease, which also
affects leaves of 30 other species of plants, but experience
has proven that it is uneconomical and expensive, he added.
    "The disease is extremely difficult to control. If it is not
curbed in the two affected countries their rubber output may
drop and prices can rise," he said.
    He added that the RRIM was aware of the disease outbreak in
Sri Lanka and was monitoring the situation.


.I 19527
.C
ship
.W
SEARCH FOR BRITISH FERRY'S TOXIC CARGO CONTINUES.
    ZEEBRUGGE, Belgium, March 10 - The search continued for a
cargo of poisonous chemical substances loaded on the Herald of
Free Enterprise Ferry which capsized in Zeebrugge harbour
Friday.
    A total of 72 drums of various toxic materials which were
loaded on trucks in the ship's hold have been recovered, but
Belgian authorities warned it was essential to recover a
further 61 containers of a cyanide-based solution.
    A net has been thrown over the gaping loading doors at the
front of the ship to prevent any more drums floating out.
    Salvage workers have moved cranes into place alongside the
wreck of the 7,951 ton roll-on, roll-off ferry which now lies
partly submerged on a sandbank outside the harbour.
    The ferry's owner is <European Ferries Plc>, majority owned
by Peninsular and Oriental Steam Navigation Co Plc <PORL.L>.
    The operation to right the vessel began yesterday after
divers abandoned their search for more bodies. Experts said it
could take months to refloat the ship and free the 80 bodies
estimated to be trapped amid debris.
    "The problem is that in these waters you can normally expect
one working day out of four," said Daan Kaakebeen of Dutch
Salvage experts Smit Tak International of Rotterdam. He
estimated the job itself would require 35 working days.
    Using reinforced cables, salvage experts intend to raise
the ship and set it down into a trench dug alongside.
    Salvage work could pinpoint the exact cause of the loss of
the ferry, one of three sister vessels plying cross-Channel
routes from England to continental Europe.
    Suspicion at present is focused on the ferry's main vehicle
loading doors, set close to water level.
    In London, Transport Secretary John Moore told parliament
yesterday that the ship keeled over after water gushed in
through the bow doors. He said a major government inquiry into
the disaster will be held, all similar ferries sailing from
Britain will be inspected and owners will be asked to fit
lights to give warning if bow doors are not properly closed.
    Experts carrying out tank and computer tests to determine
how the accident occurred will focus attention on the ship's
doors, its ballast system and crew procedures, he added.
    Two other investigations into the disaster have also begun,
one Belgian and one by the ferry's owners.


.I 19528
.C
acq
.W
IMATRON <IMAT> SELLS STAKE TO MITSUI <MITSY>.
    SOUTH SAN FRANCISCO, Calif., March 9 - Imatron Inc said
Mitsui and Co Ltd of Japan has purchased a two mln dlr equity
interest in Imatron at market price and was granted a 120-day
option to make another two mln dlr investment at the same price.
    Imatron said Mitsui, the exclusive importer of Imatron's
Ultrafast computed tomography scanners into Japan, is scheduled
to take delivery of its first scanner next month for
installation in a large cardiology center.
    It said it has entered into preliminary discussions with
Mitsui on the formation of a joint venture to finance the
accelerated development of Imatron's technology and its
commercialization in Japan.


.I 19529
.C
orange
.W
U.S. HAS TO MIDNIGHT TO SET ORANGE JUICE DUTIES.
    WASHINGTON, March 9 - A decision on final dumping duties on
frozen orange juice from Brazil may not be issued until
tomorrow, Commerce Department officials said.
    They said the department has until midnight tonight to set
the duty, but may not make the finding public until tomorrow.
    A preliminary duty of 8.54 pct was set last Oct. 17.
    The final duty will be based on more detailed information,
the officials said.


.I 19530
.C
ship
.W
GALE FORCE WINDS BUFFET GREAT LAKES.
    Kansas City, March 9 - The National Weather Service said
warnings of gale force winds remained in effect over lakes
Erie, Huron and Michigan.
    Also, warnings have been posted for large waves and beach
erosion along the shores of the Lakes. Winds gusting to 45 mph
caused four to six foot waves along the western and southern
shores of Lake Michigan during the morning.
    Advisories for low wind chill temperatures have also been
posted across portions of upper Michigan and northern lower
Michigan. Early morning gusty winds brought the wind chill to
15 and 25 degrees below zero.
    Freezing rain was scattered over central Colorado by mid
morning, also over central Kansas and northeast Illinois.
    Snow reached from south central Montana across Wyoming,
western Nebraska and western Kansas. Snow also extended across
northern Wisconsin, upper Michigan and northern lower Michigan.
    Rain reached along the northern Pacific Coast, across
northwest Utah, Maryland, Deleware, Virginia, the Carolinas,
Georgia and northern Alabama.


.I 19531
.C
interest
.W
U.K. ISSUES ONE BILLION STG BOND TRANCHE.
    LONDON, March 9 - The Bank of England said it was taking
onto its books a further one billion stg tranche of 8-3/4 pct
Treasury Loan stock due 1997, payable 40 stg pct on
application. The stock was issued to the Bank at 96.50 stg pct
and will be available for dealings from March 11, with the
remainder of the amount payable on May 5. The Bank said the
bonds would yield 9.28 pct at the issue price and would be free
of tax to residents overseas. The issue would be designated
8-3/4 pct Treasury Loan 1997 "B."  A further 100 mln stg was
reserved for the National Debt Commissioners.
    The market dropped by up to 1/2 point following the Bank's
announcement, with the Treasury 13-1/2 pct stock due 2004/08
quoted one full point lower at 134-12/32 stg pct around 20
minutes after the news.
    Dealers said the announcement had to be viewed against the
backdrop of intense pressure for lower U.K. Interest rates
which had built up over the past two weeks as a result of
sterling's strength.
    The Bank this morning finally signalled it was prepared to
see lower rates and U.K. Clearing banks this afternoon
announced cuts in their base lending rates to 10.5 pct from 11
pct.
    The Bank had initially been reluctant to countenance a rate
cut because, dealers said, the authorities had wished to delay
a reduction until around the time of the U.K. Budget on March
17, thereby preserving the full impact of Chancellor of the
Exchequer Nigel Lawson's package of measures.
    However, in the face of sterling's apparently inexorable
climb, the authorities today decided to cede to pressure and
allow a half-point cut.
    Today's one billion stg tap issue was viewed by the market
as a move by the Bank to eradicate hopes for a further early
rate cut which might arise as a result of strong sterling.
    Most market participants believe that Lawson will now
foster a further half point interest rate reduction at the time
of the budget, although one or two said they would not be
surprised to see a full point decline at this stage.
    Dealers noted that as part of the authorities' attempts
last week to ease pressure for lower rates, the Bank had issued
a one billion stg tap stock with a view to subduing the
Government bond market.
    To the surprise of most participants, the issue was sold
out within hours of becoming available for trading and the
market pushed on to register further sharp gains.
    Dealers said that at this stage it seemed unlikely that the
issue announced today would be absorbed by the market as
rapidly as last week's.
    However, they noted that although sterling had edged down
from its highs following the base rate cut, it had still closed
on a trade-weighted basis at 72.4, well ahead of Friday's final
71.8 and only just beneath the peak of 72.5 touched at 1300
GMT.


.I 19534
.C
acq
.W
******AMC SAYS IT IS "STUDYING" CHRYSLER BUYOUT PROPOSAL AND WILL COMMENT WHEN "APPROPRIATE".
Blah blah blah.

.I 19535
.C
crude
.W
PETRO-CANADA TO DRILL TWO TERRA NOVA TEST WELLS.
    ST. JOHN'S, Newfoundland, March 9 - Petro-Canada, Canada's
state-owned oil company, said it will drill two delineation
wells this summer at the Terra Nova oil field offshore
Newfoundland.
    Evaluation of test results and preliminary engineering work
should put Petro-Canada in a position to propose a development
plan for the Terra Nova field in 1988, the company said.
    Depending on time required for regulatory approvals,
construction could begin in 1989, with first oil production as
early as 1991, Petro-Canada said.
    "We have a high degree of confidence that the western
portion of the (Terra Nova) field contains at least 11 mln
cubic meters of recoverable oil, or more than 70 mln barrels,
and that we could produce it economicly using a floating
production system," Petro-Canada said.
    The Terra-Nova field, lying 350 kilometers east of St.
John's and 35 kilometers southeast of Hibernia field, was
discovered by Petro-Canada in 1984.
    "We've had encouraging results from the eastern portion of
the field, and we hope this summer's drilling will prove up
additional reserves there," the company said.
    Petro-Canada believes Terra Nova field is a good commercial
prospect and the company wants to move some of those resources
towards development so it can start generating a return on
investments, Petro-Canada said.
    Petro-Canada, which will act as operator of the two wells,
has a 75 pct interest in the western portion of Graven block of
the Terra Nova field and a 26 pct interest in the field's East
Flank block, a company spokesman said later. Other field
participants include Canterra Energy Ltd, Mobil Oil Canada Ltd,
Gulf Canada Resources Inc, ICG Resources Ltd, Trillium
Exploration Corp and general partnership PAREX.
    Petro-Canada estimates reserves in the Terra Nova field's
Graven block of between 68 mln and 70 mln barrels of oil,
company spokesman Bob Foulkes said from Petro-Canada's Calgary
office.
    Combined reserves for Graven Block and the field's East
Flank block are estimated between 70 mln and 130 mln barrels,
he added.
    Petro-Canada expects to spend about 500 mln Canadian dlrs
to bring the field to production by about 1991, and the
development budget could double if the company builds a
production system combining both blocks in the field, he said.
    Petro-Canada estimates the Terra Nova field Graven block
would produce between 25,000 and 26,000 barrels average daily
production, with a production system that would have maximum
capacity of 40,000 bpd, company spokesman Foulkes said in
answer to a query.
    The company estimates a production system combining both
Graven and East Flank blocks in the Terra Nova field could
produce about 45,000 bpd average daily production, he said.


.I 19537
.C
earn
.W
CHARAN SEES AT LEAST 50 PCT RISE IN 1987 PROFIT.
    MONTREAL, March 9 - (Charan Industries Inc), a distributor
of toys and other consumer products, expects 1987 net profit to
rise at least 50 pct over last year's 6.1 mln dlrs, president
Earl Takefman told reporters before the annual meeting.
    "We grew basically 100 pct last year, I'm not sure we're
going to be able to grow 100 pct again this year but we
certainly will grow at least 50 pct over last year," Takefman
said.
    Charan reported profit of 3.0 mln dlrs in 1985.
    Takefman said he expects sales to rise to about 100 mln
dlrs this year from 57.3 mln dlrs in 1986.
    Fiscal 1985 ended September 30, while fiscal 1986 ended
November 30.
    Takefman said the company is actively looking for
acquisitions in the consumer products industry, likely in
Canada.
    The company said it expects to resolve delivery problems
this year which last year hindered the growth of its toy
distribution business, which accounts for about one-third of
revenues.
    Charan is the exclusive distributor in Canada for <Worlds
of Wonder> toys, which include the Teddy Ruxpin voice-activated
talking plush bear.
    Takefman said new products this year, which will be on the
shelves for Christmas, include a smaller version of Teddy
Ruxpin, a talking Mickey Mouse toy, dancing plush toys, a doll
with a voice activated by sound, touch, light and heat, and
talking books.
    The company is also marketing an extended line of "laser
tag" kits, which shoot rays of light and tell you when you've
hit someone.
    Other products include a recorder device which allows
students to leave taped messages in each others' school
lockers, retailing for about 60 dlrs.


.I 19538
.C
earn
.W
MAYFAIR SUPER MARKETS <MYFRA> SALES INCREASED.
    ELIZABETH, N.J., March 9 - Mayfair Super Markets said its
sales for the second qtr ended Feb 28 were 122.0 mln dlrs, an
increase of more than 15 pct compared to sales of 105.9 mln
dlrs in the comparable quarter last year.
    The company said sales for the first six months of the year
were 242.0 mln dlrs, more than 15 pct above the 210.1 mln dlrs
reported in the same period last year.
    This was the 12th consecutive quarterly gain, the company
said.  The company said it expects to release earnings in
April.


.I 19539
.C
acq
.W
DONALD TRUMP TO BUY CROSBY RESORTS <RTB> STOCK.
    NEW YORK, March 9 - Casino hotel operator and real estate
developer Donald Trump said he has agreed to purchase the Class
B common stock of Resorts International Inc held by the family
and estate of late Resorts chairman James Crosby for 135 dlrs
per share.
    Trump said he is also considering a tender offer for
remaining Class B shares at the same price but has no interest
in Resorts' Class A shares.
    Trump said the shares he has agreed already to buy
represent a 78 pct interest in the Class B stock. The estate
itself owns 340,783 of the 752,297 Class B shares. There are
also about 6,432,000 Class A shares outstanding, but Trump said
"I have no interest in the Class A shares."
    Each Class B share has 100 times the voting power of a
Class A share.
    In Atlantic City, Resorts said in a statement that the
Class B shares being sold to Trump represents 73 pct of the
combined voting power in Resorts.
    It said closing is dependent on receipt of necessary
regulatory approvals and other matters, and after closing,
Trump will tender for remaining Class B shares at the same
price.


.I 19541
.C
acq
.W
GENCORP<GY> UNIT TO SELL LOS ANGELES TV STATION.
    AKRON, Ohio, March 9 - Gencorp said its RKO General
subsidiary agreed to sell KHJ-TV in Los Angeles to Walt Disney
Co <DIS> for 217 mln dlrs cash plus working capital and other
adjustments at closing.
    The company said under the agreement in principle, RKO's
application to renew the station's broadcast license would be
dismissed and the competing application of Fidelity Television
would be granted. Disney would then acquire privately held
Fidelity for about 103 mln dlrs and other adjustments.
    Renewal of the KHJ-TV license has been challenged in
regulatory proceedings for more than 20 years.
    The deal is subject to prior approval by the Federal
Communications Commission, the company said.
    Late in 1985, Gencorp cut a deal with Fidelity, a Los
Angeles investor group, and Westinghouse Electric Corp <WX> to
settle the license proceedings and sell KHJ-TV for 313 mln
dlrs, 70 pct of which would go to Westinghouse and the
remainder to Fidelity. But on Jan 28, 1987, Westinghouse
withdrew from the deal because the FCC would not approve it.
    In early 1986, Gencorp and RKO agreed to sell WOR-TV in
Secaucus, N.J., to MCA Inc <MCA> for 387 mln dlrs. The FCC has
approved the transaction, but several parties have appealed.
    The FCC has not said when it would rule on the appeals,
according to a spokemsan for Akron, Ohio-based Gencorp.
    Fidelity Television originally filed a competing
application for the RKO license for KHJ, an independent
station, in 1965.
    In 1980, the FCC disqualified RKO as licensee of WNAC-TV in
Boston, citing anti-competitive trade practices and inaccurate
financial reporting to the agency, causing renewals previously
granted to RKO in New York, for WOR, and Los Angeles, for KHJ,
to be denied.


.I 19542
.C
acq;pet-chem;
.W
PPG INDUSTRIES <PPG> SELLS ETHYLENE INTERESTS.
    PITTSBURGH, March 9 - PPG Industries Inc said a group of
investors led by <Sterling Group> of Houston said it has agreed
to acquire PPG's ethylene products business, including its
inteest in an ethylene glycols joint venture with du Pont Co
<DD> in Beaumont, Texas, for undisclosed terms.
    The company said completion is expected in the second
quarter.
    It said the business had sales of over 50 mln dlrs in 1986.


.I 19543
.C
money-fx;interest;
.W
FED EXPECTED TO ADD TEMPORARY RESERVES.
    NEW YORK, March 9 - The Federal Reserve is expected to
intervene in the government securities market to add temporary
reserves via customer repurchase agreements, economists said.
    Most economists said the Fed will add 1.5 to two billion
dlrs of temporary reserves via customer repurchase agreements,
but some said there is a slim chance the Fed will inject
permanent reserves via three-day system repurchase agreements.
    Federal funds opened at 6-1/16 pct and firmed to 6-1/8 pct
in early trading. Funds averaged six pct on Friday.


.I 19544
.C
interest
.W
BARCLAYS, MIDLAND FOLLOW NATWEST BASE RATE CUT.
    LONDON, March 9 - Barclays Bank Plc <BCS.L> and Midland
Bank Plc <MDBL.L> said they are cutting their base lending
rates to 10.5 pct from 11 pct. The cuts follow a similar move
by National Westminster Bank Plc <NWBL.L>
    The rate changes take effect tomorrow.
    The base rate reductions came after the Bank of England cut
its dealing rates this morning in a signal to the money markets
that it would not resist a half percentage point drop in bank
base lending rates, market sources said.
    Until the end of last week, the central was holding out
staunchly against market pressures for lower rates in an
apparent effort to preserve the expected rate cuts for around
the time of the government's annual Budget on March 17.
    Sterling remained firm around 1.59 dlrs compared with its
close here on Friday at 1.5865 dlrs.


.I 19547
.C
acq
.W
******UNITED AUTO WORKERS UNION SAYS IT SUPPORTS CHRYSLER-AMC MERGER.
Blah blah blah.

.I 19550
.C
interest
.W
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT.
    LONDON, March 9 - Lloyds Bank Plc <LLOY.L> said it is
cutting its base lending rate to 10.5 pct from 11 pct,
effective tomorrow.
    The reduction follows similar moves from the three other
British clearing banks.
    National Westminster Bank Plc <NWBL.L> led the way this
morning after the Bank of England lowered its dealing rates in
a signal that it would tolerate a half percentage point
reduction.
    The central bank's surprise signal followed its strenuous
efforts last week to prevent market forces from bringing down
base rates before the U.K. Budget on March 17.


.I 19551
.C
acq
.W
NORCROS BREAKS OFF MERGER TALKS WITH WILLIAMS.
    LONDON, March 9 - Norcros <NCRO.L> Plc said it has no
intention of proceeding any further with talks on Williams
Holdings Plc's suggestion that there would be benefits arising
from a merger between the two groups.
    Norcros said any such benefits could be achieved through
normal trading and did not warrant a closer formal association.
    Norcros shares firmed 30p to 342p after the news on
investor speculation of a possible hostile bid from Williams,
dealers said. Williams rose 2p to 742.
    Williams earlier informed Norcros that it holds some
2,890,000 of its ordinary shares or 2.2 pct of those issued.


.I 19553
.C
interest
.W
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT.
    LONDON, March 9 - Lloyds Bank Plc <LLOY.L> said it is
cutting its base lending rate to 10.5 pct from 11 pct,
effective tomorrow.
    The reduction follows similar moves from the three other
British clearing banks.
    National Westminster Bank Plc <NWBL.L> led the way this
morning after the Bank of England lowered its dealing rates in
a signal that it would tolerate a half percentage point
reduction.
    The central bank's surprise signal followed its strenuous
efforts last week to prevent market forces from bringing down
base rates before the U.K. Budget on March 17.


.I 19554
.C
wheat;grain;barley;
.W
LESS GRAIN FLOWS INTO WEST GERMAN INTERVENTION.
    HAMBURG, March 9 - The West German Intervention Board said
it accepted 962,192 tonnes of grain from the start of the
current agricultural year to the end of last month, compared
with 1.8 mln tonnes during the July/February period in 1985/86.
    It said it accepted 336,097 tonnes of bread wheat (nil in
the year-earlier period), 16,818 (nil) tonnes of high quality
wheat, 33,623 (523,625) tonnes of feed wheat, 3,426 (168,682)
tonnes of rye, 88,494 (32,766) tonnes of high quality rye,
2,313 (105,005) tonnes of summer barley and 481,421 (972,794)
tonnes of winter barley.


.I 19555
.C
interest
.W
LLOYDS BANK MATCHES BASE RATE CUT TO 10.5 PCT.
    LONDON, March 9 - Lloyds Bank Plc said it is cutting its
base lending rate to 10.5 pct from 11 pct, effective tomorrow.
    The reduction follows similar moves from the three other
British clearing banks.
    National Westminster Bank Plc led the way this morning
after the Bank of England lowered its dealing rates in a signal
that it would tolerate a half percentage point reduction.
    The central bank's surprise signal followed its strenuous
efforts last week to prevent market forces from bringing down
base rates before the U.K. Budget on March 17.


.I 19556
.C
interest
.W
******FRENCH 13-WEEK T-BILL AVERAGE RATE FALLS TO 7.37 PCT FROM 7.69 PCT - OFFICIAL.
Blah blah blah.

.I 19557
.C
meal-feed;fishmeal;
.W
LITTLE MOVEMENT ON HAMBURG FISHMEAL MARKET.
    HAMBURG, March 9 - The Hamburg fishmeal market saw little
movement in the past week with demand slack as in other protein
feed sectors, trade sources said.
    Prices edged up on firmer origin offering levels and the
stronger dollar. Sellers quoted 64 pct fishmeal at between 640
and 650 marks per tonne free on truck for spot and between 630
and 640 marks for April/Dec.
    International demand was also slow but some inquiries from
Far Eastern buyers were noted in South American producer
countries, the sources said.
    Chile is said to have good catches in northern and southern
fishing grounds, with offers unchanged at 330 dlrs per tonne c
and f North German ports.
    Peru's catches differ regionally and stocks are low.
Sellers quoted a nominal offering level of 320 dlrs per tonne c
and f north German ports. Ecuador was not in the market and
catches are said to be poor.
    Denmark has seasonally low catches, with 72 pct meal
offered at 315 crowns per 100 kilos cif North European ports
for April/Oct deliveries. Iceland has good catches and sellers
quoted a price of 5.45 dlrs per percentage point protein cif
North European ports. Norway was not in the market.


.I 19559
.C
money-fx;interest;
.W
UK MONEY RATES FALL AS BANK APPROVES BASE RATE CUT.
    LONDON, March 9 - A half point cut in base lending rates
was announced by the big four clearing banks today after the
Bank of England finally endorsed such a move following weeks of
downward pressure, dealers said.
    During its routine intervention in the market, the bank
trimmed the rates at which it deals with the discount houses by
half a point and National Westminster led the other clearing
banks in reducing its base rate to 10-1/2 pct from 11 pct.
    The timing of the Bank of England move took operators by
surprise after its recent action seemingly designed to dampen
hopes of a base rate cut ahead of the U.K. Budget on March 17.
       For some time, fundamentals have
led the market to push for a one point cut in base lending
rates to 10 pct but the central bank has declined to follow
wholesale money market rates down.
    Although political considerations -- the government's wish
to see a fall in base rates coincide with the Budget -- had
been suggested by operators last week as reasons for the Bank's
delaying action, worries about the real strength of sterling
and perhaps about the market's reaction to the content of the
Budget may have been behind the central bank's caution, dealers
said.
    In the event, sterling continued firm after the rate cut,
leaving the market still looking for another half point fall.
    Consequently, rates in the money market eased during the
day, one-month interbank sterling shedding 5/16 point to
10-9/16 7/16 and three-months trading 1/16 point down at
10-5/16 3/16 pct. Sterling cd's were similarly down between
5/16 point in one month and 1/8 point in one year.
    Overnight interbank money for tomorrow was indicated at
around 11 pct, almost a point below the levels ruling at the
end of last week. Today, overnight touched a high of some
11-3/4 pct after the Bank took out 228 mln stg of an estimated
300 mln stg shortage.


.I 19560
.C
wheat;grain;corn;
.W
GRAIN CERTIFICATE REDEMPTIONS PUT AT 240 MLN BU.
    KANSAS CITY, March 9 - Over 240 mln bushels of government
grain have been allocated in redemptions for commodity
certificates since the program began April 30, according to the
Commodity Credit Corporation.
    Redemptions included 11.4 mln bushels of corn valued at
17.0 mln dlrs, or an average per-bushel price of 1.492 dlrs,
since the current grain catalogs were issued December 1 by CCC.
    Wheat redemptions totaled 9.6 mln bushels, valued at 23.7
mln dlrs, since December 1.
 More

.I 19561
.C
acq
.W
AMC <AMO> STUDYING CHRYSLER <C> PROPOSAL.
    SOUTHFIELD, Mich., March 9 - American Motors Corp said it
is studying a proposed merger with Chrysler Corp.
    American Motors said it received a letter from Chrysler
Corp "advising us of their proposal to enter into a merger
transaction with American Motors Corp."
    In a brief statement, the company said, "We are studying
the proposal. We will have further comment when it is
appropriate."


.I 19564
.C
acq
.W
WALL STREET STOCKS/AMERICAN EXPRESS <AXP>.
    NEW YORK, March 9 - American Express Co's stock fell
sharply, reflecting, in part, investors' disappointment that
the company did not make an announcement about its plans for
brokerage unit Shearson Lehman Brothers, traders said.
    The company has said it is studying options for its
Shearson unit. Traders said many investors anticipated an
announcement this weekend that it would spin off Shearson
Lehman. Also, they said, a flurry of arbitrage related sell
programs that pounded the general market today accelerated the
selloff of American Express, a component of the Dow Industrial
Average. American Express fell 3-1/8 to 77-3/8.
    "It was part programs and part that there was anticipation
of an announcement of a spinoff or something with Shearson this
weekend, and that announcement never happened," one trader
said.
    In the last few minutes of trading on Friday, another
trader said, the stock jumped to close up 3-3/8, largely on
anticipation that the company would make a weekend
announcement.


.I 19567
.C
crude;nat-gas;
.W
RANGER <RGO> COMPLETES U.S. PROPERTY SALE.
    CALGARY, Alberta, March 9 - Ranger Oil Ltd said it
completed on March 2 the previously announced sale of its U.S.
oil and gas properties held by subsidiaries Ranger Oil Co and
Ranger Inc to Ampol Exploration Ltd, of Australia, for 18.5 mln
U.S. dlrs.
    Ranger said that under the deal, it would retain a five pct
gross overriding royalty on its stake from blocks east cameron
65 and 82 in the Gulf of Mexico offshore Lousiana.
    It said the sale did not include U.S. properties acquired
from <Berkeley Exploration and Production PLC> last December.


.I 19568
.C
crude
.W
******AMOCO'S FIRST SOUTH CHINA SEA EXPLORATORY WELL FLOWS 2,240 BARRELS OF OIL DAILY.
Blah blah blah.

.I 19571
.C
orange
.W
TRADERS SAY USDA MAY LOWER ORANGE CROP ESTIMATE.
    New York, March 9 - The U.S. Department of Agriculture will
probably decrease its estimate of the 1986/87 Florida orange
crop today to as low as 123 mln boxes from 129 mln boxes,
analysts and industry sources said.
    The Department is scheduled to release the new estimate at
1500 hrs EST (2100 gmt) today.
    Analysts said the market is anticipating a downward
revision and much of the bullish impact has been discounted.
    The estimate, which the USDA has left unchanged since
October, should be affected this time by recent evidence of a
shortfall in the early and midseason crop now that those
harvests are complete. Analysts said based on earlier USDA
projections, the harvests should have been five to seven mln
boxes larger than they were.
    "They are going to cut their estimate," said Bob Tate, an
FCOJ broker with Dean Witter Reynolds in Miami. "The only
question is whether they will admit the whole thing in this
estimate."
    Tate said it is possible the USDA will lower its estimate
by a lesser amount, perhaps three mln boxes, and continue to
drop the estimate in subsequent reports as the crop picture
clarifies. The late season harvest, consisting mostly of
Valencia oranges, has not yet started, he noted.
    "They'll temper it," said Judy Weissman, FCOJ analyst with
Shearson Lehman Bros. "The main drop will probably come in
July."
    She expects today's estimate will be 126 mln boxes.


.I 19574
.C
acq
.W
UAW SAYS IT BACK CHRYSLER <C>, AMC <AMO> MERGER.
    DETROIT, March 9 - The United Auto Workers <UAW> union said
it supports Chrysler Corp's proposal to buy American Motors
Corp as creating "a good match that potentially points the way
to a more secure future for workers at both companies."
    "We believe our members' interests can be well served
within the Chrysler family, and we are committed to making that
happen," UAW president Owen Bieber and vice president Marc
Stepp said in a statement.
    "We believe Chrysler's purchase is a logical and sound step
for all concerned," the union said.
    The UAW is negotiating with AMC over the carmaker's demand
for economic concessions covering workers at its Wisconsin
operations, without which AMC has said it would cease vehicle
production at its Kenosha, Wisconsin, assembly plant by 1989.


.I 19575
.C
acq
.W
TWA <TWA> DECLINES COMMENT ON USAIR <U>.
    NEW YORK, March 9 - A Transworld Airlines Inc official said
the airline has no comment on USAir Group Inc's planned buyout
of Piedmont Aviation Inc.
    TWA, however, has pursued its application with the
Department of Transportation for a takeover of USAir, according
to Mark Buckstein, TWA general counsel and vice president. TWA
filed a revised application today, following the DOT's
rejection Friday of an incomplete application filed last week.
    Earlier USAir said it agreed to buy Piedmont for 69 dlrs
cash per share.

.I 19576
.C
acq
.W
MOODY'S MAY DOWNGRADE PIEDMONT AVIATION <PIE> .
    NEW YORK, March 9 - Moody's Investors Service Inc said it
may downgrade 120 mln dlrs of debt of Piedmont Aviation Inc
because of the airline's agreement to be acquired by USAir
Group Inc <U>.
    The rating agency said its review would focus on the effect
of the acquisition on Piedmont's financial leverage and its
debt-service requirements. Moody's said it is also examining
the potential use of the airline's borrowing capacity to
finance the merger.
    Piedmont currently carries Baa-2 preferred stock and
Prime-2 commercial paper.


.I 19577
.C
rubber
.W
RUBBER PRODUCERS, CONSUMERS START NEW PACT TALKS.
    GENEVA, March 9 - The chairman of the conference on a new
International Natural Rubber Agreement (INRA), Manaspas Xuto of
Thailand, said it was imperative to try to settle the main
outstanding issues this week.
    The INRA renegotiation conference, which resumed today
under the auspices of the United Nations Conference on Trade
and Development (UNCTAD), is scheduled to last until March 20.
    Xuto told delegates this session of the conference
presented a promising opportunity to conclude a new pact but it
had to be the last before the current accord expires in
October.
    Xuto said in his consultations with representatives of
major exporting and importing countries over the last few
months, "I have found a constructive attitude and willingness to
be flexible on the part of all concerned."
    "It is imperative that we try to settle the major
outstanding issues in the course of this week, since a
considerable amount of technical drafting work will remain to
be completed." He said he will immediately start consultations
with producers and consumers.
    The last October negotiations collapsed in disagreement
over buffer stock operations.
    Consumer demands for tighter buffer stock controls, aimed
at preventing INRA from following the collapse of the
International Tin Agreement (ITA), were rejected by producers
who argued for unchanged INRA terms.
    The tin pact failed when its buffer stock manager ran out
of funds to support prices.
    Three previous rounds of talks between rubber producers and
consumers for a new five-year pact ended without agreement. The
INRA, originally due to expire in October 1985, was extended to
October 1987 to facilitate renegotiation.
    Wong Kum Choon, head of the Malaysian delegation, said he
was cautiously optimistic "that together we should be able to
save INRA and prevent it from being scuttled."
    Without INRA, he added, prices of natural rubber would
become more volatile.
    Calling on delegates to show a sense of purpose and
reality, he said, "There is no reason why we could not put aside
differences and come up with a successor agreement."


.I 19579
.C
acq
.W
USAIR <U> AND UNIT REMAIN UNDER MOODY'S REVIEW.
    NEW YORK, March 9 - Moody's Investors Service Inc said the
212.75 mln dlrs of debt of USAir Group Inc and its USAir Inc
unit remain under review for possible downgrade.
    The rating agency cited USAir Group's proposed acquisition
of Piedmont Aviation Inc <PIE>, as well as Trans World Airlines
Inc's <TWA> proposed cash merger with USAir.
    However, the status of TWA's bid for USAir Group is
currently uncertain. The U.S. Transportation Department has
rejected TWA's application to acquire USAir on deficiency
grounds, but TWA has said it will file a revised application,
Moody's noted.
    Under Moody's review for possible downgrade are USAir
Group's Baa-1 senior debt and Baa-2 subordinated debentures,
along with the USAir unit's A-3 senior debt and Baa-1
subordinated debentures.
    Moody's said it would examine the effects of the proposed
mergers on USAir Group's financial measurements, as well as
potential damage to the company's financial flexibility because
of the probability of increased debt-service requirements.


.I 19581
.C
money-fx
.W
******FED SETS 2.5 BILLION DLR CUSTOMER REPURCHASE, FED SAYS.
Blah blah blah.

.I 19583
.C
earn
.W
BALLY <BLY> TO TAKE 17.3 MLN DLR 1ST QTR CHARGE.
    WASHINGTON, March 9 - Bally Manufacturing Corp said it
expects a charge to earnings in the first quarter of this year
of 17.3 mln dlrs as a result of its deal to buy back 2.6 mln of
its common shares from real estate developer Donald Trump.
    In a filing with the Securities and Exchange Commission,
the Chicago-based hotel, casino, gambling and amusement concern
also said the anticipated charge against first quarter earnings
will not be deductible for federal income tax purposes.
    Under a February 21 deal, Bally agreed to buy 2.6 mln of
the 3.06 mln shares held by Trump at 24 dlrs a share, or 62.4
mln dlrs, while Trump agreed not to try to seek control of
Bally.
    The agreement also calls for Bally to pay Trump another 6.2
mln dlrs for certain agreements, claims and expenses related to
his purchase of the Bally common stock, Bally said.
    Trump agreed not to buy any more Bally stock or to try to
seek control of the company for 10 years, it said.
    Bear, Stearns and Co Inc signed a similar standstill
agreement with Bally for three years, Bally said. But it can
still deal in Bally stock as a broker, it said.
    The deal also obligates Bally to buy Trump's remaining
stake in the company for 33 dlrs a share if the stock price
does not reach that level by February 21, 1988, it said.


.I 19584
.C
crude
.W
******SHELL CANADA SAID IT RAISED CRUDE PRICES BY 47 CANADIAN CTS A BARREL TODAY.
Blah blah blah.

.I 19585
.C
zinc
.W
HUDSON BAY MINING CUTS U.S., CANADA ZINC PRICES.
    TORONTO, March 9 - Hudson Bay Mining and Smelting Co Ltd
said it cut prices for all grades of zinc sold in North America
by one U.S. cent a pound and by one Canadian cent a pound,
effective immediately.
    The new price for high grade zinc is 37 U.S. cents and
49-1/2 Canadian cents a pound, the company said.
    Special high grade, prime western and continuous
galvanizing grade with controlled lead now costs 37-1/2 U.S.
cents and 50 Canadian cents a pound. The new price for
continuous galvanizing grade alloyed with controlled lead and
aluminum additions is 37-3/4 U.S. cents and 50-1/4 Canadian
cents a pound.


.I 19586
.C
money-fx;interest;
.W
FED ADDS RESERVES VIA CUSTOMER REPURCHASES.
    NEW YORK, March 9 - The Federal Reserve entered the U.S.
Government securities market to arrange 2.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
    Dealers said Federal funds were trading at 6-3/16 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.


.I 19588
.C
acq
.W
COURT REJECTS BUITONI APPEAL OVER IRI FOOD UNIT.
    ROME, March 9 - An appeal by Buitoni SpA against a court
ruling that an accord under which it was to acquire Italian
state food firm SME - Societa Meridionale Finanziaria was not
contractually binding has been rejected, court officials said.
    An appeal court rejected Buitoni's claim that the 497
billion lire accord with the state industrial company IRI -
Istituto per la Ricostruzione Industriale was a binding
contract. The decision upholds a court ruling of last July.
    Buitoni is controlled by CIR - Compagnie Industriali
Riunite, an investment company itself controlled by Ing C
Olivetti EC SpA (OLIV.MI> chairman Carlo De Benedetti.


.I 19590
.C
acq
.W
ALLEGHENY <AG> AIMS TO DIVEST MORE BUSINESSES.
   PITTSBURGH, Penn., March 9 - Allegheny International Inc,
the consumer products concern that today announced a merger
agreement with a First Boston Corp <FBC> affiliate in a deal
worth about 500 mln dlrs, said it intends to divest more units
as a way to increase profits.
    "We're going to reduce AI to a size consistent with our
financial resources," said Chairman Oliver S. Travers.
    "We have made a conscious, strategic choice to become a
smaller, financially sound, consumer products company which
operates predominantly in the stable political and economic
environment of North America," he said.


.I 19591
.C
crude;nat-gas;
.W
HAMILTON OIL <HAML> SAYS RESERVES RISE.
    DENVER, March 9 - Hamilton Oil Corp said reserves at the
end of 1986 were 59.8 mln barrels of oil and 905.5 billion
cubic feet of natural gas, or 211 mln barrels equivalent, up 10
mln equivalent barrels from a year before.


.I 19596
.C
acq;crude;nat-gas;
.W
GRAHAM-MCCORMICK <GOP> SELLS OIL AND GAS STAKE.
    COVINGTON, La., March 9 - Graham-McCormick Oil and Gas
Partnership said it completed the sale of interests in two
major oil and gas fields to <Energy Assets International Corp>
for 21 mln dlrs.
    The company said it sold about one-half of its 50 pct
interest in the Oak Hill and North Rucias fields, its two
largest producing properties.
    It said it used about 20 mln dlrs of the proceeds to prepay
principal on its senior secured notes. Semi-annual principal
payments on the remaining 40 mln dlrs of notes have been
satisfied until December 1988 as a result, it said.
    The company said the note agreements were amended to
reflect an easing of some financial covenants, and an increase
of interest to 13.5 pct from 13.0 pct until December 1990.
    It said the noteholders exercise price for 1,125,000
warrants was also reduced to 50 cts from 1.50 dlrs.
    The company said Energy Assets agreed to share the costs of
increasing production at the Oak Hill field.



.I 19598
.C
acq
.W
ADVANCED TOBACCO <ATPI> MERGER TALKS END.
    SAN ANTONIO, Texas, March 9 - Advanced Tobacco Products Inc
said it has ended talks on being acquired by Sterling Drug Inc
<STY> but has resumed acquisition talks with other parties.
    The company had previously announced that a "major U.S.
based company" that it did not identify was evaluating its
nicotine technology.
    Advanced said Sterling's board has decided not to enter the
nicotine product market.
    It said it received a 200,000 dlr payment to deal
exclusively with Sterling through March Six.
    Advanced said it had suspended merger talks with other
parties as a result of the exclusivity agreement.


.I 19602
.C
acq
.W
T.H.E. FITNESS <RFIT> BUYS LIVINGWELL UNIT.
    FORT LAUDERDALE, FLa, March 9 - T.H.E. Fitness INc said it
agreed to buy Livingwell Inc's manufacturing unit, Powercise
INternational Inc, for 11.0 mln T.H.E. Fitness shares valued at
about 30 mln dlrs.
    This acquisition includes all of Livingwell's rights to its
recently announced Powercise fitness equipment.
    IN a separate transaction, Livingwell INc, an operator of
300 health clubs, placed a six mln dlrs order with Powercise
INternational to install the Powercise equipment in all of its
clubs.


.I 19603
.C
heat
.W
EXXON <XON> RAISES HEATING OIL PRICE, TRADERS.
    NEW YORK, March 9 -- Oil traders in the New York area said
Exxon Corp's Exxon U.S.A. increased the price it charges
contract barge customers for heating oil in New York harbor by
1.5 cts a gallon, effective Saturday, March 7.
    They said the increase brought Exxon's contract barge price
to 50 cts a gallon.
    Traders said the price hike followed higher spot and
futures market prices for heating oil.


.I 19605
.C
zinc
.W
HUDSON BAY MINING CUTS U.S., CANADA ZINC PRICES.
    TORONTO, March 9 - <Hudson Bay Mining and Smelting Co Ltd>
said it cut prices for all grades of zinc sold in North America
by one U.S. ct a pound and by one Canadian ct a pound,
effective immediately.
    The new price for high grade zinc is 37 U.S. cts and 49-1/2
Canadian cts a pound, the company said.
    Special high grade, prime western and continuous
galvanizing grade with controlled lead now costs 37-1/2 U.S.
cts and 50 Canadian cts a pound. The new price for continuous
galvanizing grade alloyed with controlled lead and aluminum
additions is 37-3/4 U.S. cts and 50-1/4 Canadian cts a pound.


.I 19606
.C
acq
.W
BANKAMERICA <BAC> COMPLETES MORTGAGE UNIT SALE.
    SAN FRANCISCO, March 9 - BankAmerica Corp's Bank of America
unit said it completed the previously announced sale of
BankAmerica Finance Ltd to <Bank of Ireland> for an expected
pre-tax gain of 23 mln dlrs.
    BankAmerica Finance provides residential mortgages in south
east England.
    Its total assets at the end of 1986 were about 1.2 mln
dlrs.


.I 19608
.C
acq
.W
******SUPERMARKETS GENERAL GETS UNSOLICITED BID FOR 41.75 DLRS/SHR CASH.
Blah blah blah.

.I 19609
.C
coffee
.W
BRAZIL TREASURY TO RELEASE COFFEE BUYING FUNDS.
    RIO DE JANEIRO, March 9 - The Treasury Department is due to
release funds for the Brazilian Coffee Institute, IBC, to pay
for the coffee purchased from local producers, the IBC said in
a statement.
    IBC production director Oripes Gomes said in the statement
that payment would be made within the official guarantee
prices.
    The statement said the IBC is sending a document to the
National Monetary Council asking the government to set a budget
for the purchase by the Institute of up to five mln bags of
coffee until June 30.
    Gomes said in the statement there have been no problems in
the concession of funds by the Treasury for payment of the
coffee delivered to the IBC warehouses by the producers.
    He said producers have already delivered 2.2 mln bags, of
which 1.5 mln bags have been paid for.
    In the future, according to an agreement to be signed with
the Treasury, the Institute will no longer need to seek
approval by the Treasury to seek the release of additional
funds to buy coffee, the statement said.


.I 19611
.C
crude
.W
SHELL CANADA <SHC> RAISED CRUDE OIL POSTINGS.
    NEW YORK, MARCH 9 - Shell Canada, a wholly owned subsidiary
of the Royal Dutch/Shell Group <RD> said that it raised crude
oil prices by about 47 Canadian cts a barrel today.
    The increase riased its posted price for Light sweet crude
oil to 21.95 dlrs a barrel from its march one level.
    Light sour crudes were raised to 19.95 dlrs a barrel, the
company said.


.I 19612
.C
cocoa
.W
******GHANA COCOA PURCHASES 1,323 TONNES IN  LATEST WEEK, CUMULATIVE 216,095 TONNES - OFFICIAL.
Blah blah blah.

.I 19613
.C
grain;sugar;corn;
.W
MGE CORN SYRUP FUTURES CONTRACT CLEARS HURDLE.
    WASHINGTON, March 9 - The staff of the Commodity Futures
Trading Commission, CFTC, recommended that the regulatory
agency approve the Minneapolis Grain Exchange's application to
trade high fructose corn syrup-55, HFCS-55, futures contracts.
    The commission is expected to approve the application at a
meeting tomorrow.
    The proposed contract would provide for the delivery of
48,000 lbs, plus or minus two pct, of bulk HFCS-55, a liquid
food and beverage sweetener produced through processed corn
starch by corn refiners.
    Under proposed rules, a shipping certificate has a limited
life, as it expires 30 days following the last day of trading
of the expiring contract month. A premium charge of 14.40 dlrs
per contract per day would be assessed under the proposal.


.I 19616
.C
earn
.W
SERVICEMASTER <SVM> SETS QUARTER DISTRIBUTION.
    DOWNERS GROVE, ILL., March 9 - ServiceMaster L.P. approved
a second quarter cash distribution of 58 cts, payable April 10,
record March 23.
    Previously, ServiceMaster said it would pay in 1987 an
indicated cash distribution of 1.50 dlrs a share, including  95
cts a share which would be paid before April 15, 1987.
    In other action, the company set May eight as the date of
its annual shareholders' meeting.


.I 19620
.C
acq
.W
WALL STREET STOCKS/CHRYSLER <C>, AMC <AMO>.
    DETROIT, March 9 - The proposed 757 mln dlr deal under
which Chrysler Corp would acquire American Motors Corp was
described by analysts as a reasonable deal for both companies.
    Ronald Glantz of Montgomery Securities said AMC common
stock could be fairly valued at "just under five dlrs a share"
given changes brought by tax reform and that Chrysler's offer
to pay four dlrs a share of Chrysler stock to AMC holders other
than Renault as a "a good price for Chrysler.
    AMC common shares opened at four dlrs this morning after
the Renault-Chrysler announcement, up 3/8, while Chrysler
shares lost 1/4 to 52-1/4.
    Though AMC issued a statement saying that it was studying
the proposed buyout and had no other comment, Glantz said he
regarded the proposal as a "done deal" because "I can't believe
anybody else would make a bid."
    "It's a reasonable deal for both sides," the analyst told
Reuters.
    "Chrysler gets the jeep franchise and the (new AMC)
Bramalea, Ontario, plant and the (new Renault) Premier
(mid-sized car) and AMC's sales will go up because buyers will
have more confidence that the manufacturer will still be around
to service the products," Glantz said.
    Analyst Thomas O'Grady said Chrysler would be getting more
manufacturing capacity, including a brand-new plant in Canada,
for a bargain price and Renault would be getting some return
after its prolonged loss-making investment in AMC.


.I 19621
.C
trade
.W
KOREANS TO BUY 1.8 BILLION DLRS IN U.S. GOODS.
    WASHINGTON, March 9 - South Korean Foreign Trade Minister
Rah Woon Bae said his country's firms have agreed to buy 1.8
billion dlrs worth of U.S. goods during his two-week buying
trip to the United States.
    Rah said most of the purchases represented shifts from
Japanese firms to U.S. firms as part of South Korea's effort to
reduce its seven billion dlr trade surplus with the United
States.
    South Korea has a five billion dlr trade deficit with
Japan.


.I 19626
.C
crude
.W
FITZWATER SAYS REAGAN STRONGLY AGAINST TAX HIKE.
    WASHINGTON, March 9 - White House spokesman Marlin
Fitzwater said President Reagan's record in opposing tax hikes
is "long and strong" and not about to change.
    "We're opposed to tax increases.... We will fight tax
increases.... We will deal with it politically in every forum
possible," said Fitzwater when questioned about whether there
was any change in the administration's position.
    Fitzwater said Reagan's strong feelings against a tax hike
included opposition to an oil import fee.
    "The President's position is that he is opposed to it," he
said.


.I 19627
.C
acq
.W
SUPERMARKETS GENERAL <SGL> GETS UNSOLICITED BID.
    WOODBRIDGE, N.J., March 9 - Supermarkets General Corp said
it received an unsolicited proposal from a third party to
acquire the company at 41.75 dlrs per share in cash.
    Supermarkets also said it retained Shearson Lehman Brothers
Inc to advise its board of directors on the proposal.
    Supermarkets General currently has about 38.5 mln shares
outstanding.
    Its stock is currently trading at 34-1/4 on the New York
Stock Exchange.
    The Woodbridge, N.J., supermarket operator of over 180
supermarkets and other specialty retail stores, convenience
food stores and drug stores.
    For the nine months ended November 30, Supermarkets
reported net income of 41.7 mln dlrs.
   


.I 19628
.C
oilseed;rapeseed;
.W
JAPANESE CRUSHERS BUY CANADIAN RAPESEED.
    CHICAGO, March 9 - Japanese crushers bought 5,000 to 7,000
tonnes of Canadian rapeseed in export business over the weekend
for April shipment, trade sources said.
    Japanese crushers continue to concentrate on rapeseed
purchases since it converts to a higher percentage of oil than
other oilseeds, they said. A glut of feed meals makes other
oilseeds, such as soybeans, less desirable because they would
add to already large meal stocks.


.I 19629
.C
zinc
.W
ABMS SAYS U.S. ZINC STOCKS HIGHER IN FEBRUARY.
    NEW YORK, March 9 - Total U.S. slab zinc stocks held by
smelters rose to 24,735 short tons at the end of February  from
22,120 short tons at the end of January, the American Bureau of
Metal Statistics reported.
    Zinc production increased to 26,732 short tons in February
from 25,786 short tons in January.
    Shipments from smelters' plants declined to 23,560 short
tons in February from 24,564 short tons in January.


.I 19632
.C
nat-gas
.W
DIAMOND SHAMROCK OFFSHORE <DSP> IN FIND.
    DALLAS, March 9 - Diamond Shamrock Offshore Partners said
it has started development drilling on West Cameron 178 block
off Louisiana in the Gulf of Mexico after a significant natural
gas find on the block.
    It said the discovery well there encountered 46 feet of net
natural gas pay. No flow tests have been conducted, it said.
    Diamond Shamrock Offshore said it has a 46.15 pct interest
in the block, Phillips Petroleum Co 28.85 pct and Santa Fe
Energy Partners LP <SFP> 25.00 pct. Diamond Shamrock Corp <DIA>
owns 80.3 pct of Diamond Shamrock Offshore.


.I 19633
.C
lead
.W
U.S. LEAD INVENTORIES RISE IN FEBRUARY - ABMS.
    NEW YORK, March 9 - Lead stocks held by U.S. refiners rose
to 37,295 short tons at the end of February from 34,224 short
tons (revised higher) at the end of January, the American
Bureau of Metal Statistics reported.
    Production of lead decreased to 33,619 short tons in
February from 38,759 short tons in January.
    Shipments from plants increased to 30,467 short tons in
February from 27,041 short tons (revised lower) in January, the
ABMS said.


.I 19638
.C
acq
.W
<SHARON STEEL CORP> EXTENDS EXCHANGE OFFER.
    MIAMI, Fla., March 9 - Sharon Steel Corp said it extended
from March six to March 31 the expiration date for its debt
exchange offer to allow time to complete the sale of its
Mueller Brass Co unit and to meet other conditions of the
offer.
    The exchange offer covers Sharon's outstanding 13.5 pct
subordinated sinking fund debentures due 2000 and its 14.25 pct
subordinated sinking fund debentures due 1990.
    Sharon said that as of March six, 31.6 pct of the 13.5 pct
notes and 20.9 pct of the 14.25 pct notes were tendered. The
Mueller sale is conditioned on receipt of 80 pct of the notes.


.I 19639
.C
ship
.W
FERRY DISASTER CLAIMS COULD TOP 30 MLN STG.
    LONDON, March 9 - U.K. Insurers could face more than 30 mln
stg of insurance claims following the Zeebrugge ferry disaster,
a spokesman for Lloyds of London said.
    It could take weeks before the extent of the compensation
claims for passengers, crew and cargo was known and also before
it was known how much, if any, of the ship could be salvaged,
said David Larner of Lloyds.
    The hull and machinery of the Herald of Free Enterprise
were valued at 25 mln stg and were insured by Townsend
Thoresen's parent company Peninsular and Oriental Steam
Navigation Co Plc <PORL.L>.
    The vessel was in turn reinsured in the London market with
Lloyds and various other companies, Larner said.
    Passengers, crew and cargo were insured by the Standard
Steamship Protection and Indemnity Association, one of several
shipowners' mutual insurance funds worldwide. These were also
underwritten by Lloyds and other companies.
    Larner said claims from passengers could be expected to
total at least five mln stg, given the number of deaths and the
normal level of liability set by the Athens Convention of 1974
of between 30,000 stg and 50,000 in case of death.
    Shipping sources said, however, that these claims could
soar if a court found there was negligence or design faults
involved.
    Larner said estimates of compensation claims "were pure
guess work" at this time. But if the ship could not be salvaged,
the claims would total at least 30 mln stg.
    Shares of insurances on the London stock exchange fell
across the board in a generally weak market.
    General Accident fell 21p to 936, Royal Insurance dropped
18p to 966 and Prudential fell 9p to 888.
    P and O shares stood at a late 616, 27p lower on the day.


.I 19641
.C
interest
.W
CITIBANK FOLLOWS U.K. BASE RATE CUT TO 10.5 PCT.
    LONDON, March 9 - <Citibank NA> said it has cut its British
base lending rate to 10.5 pct from 11 pct, with effect from
tomorrow.
    This move follows similar cuts by four major British
clearing banks, led by National Westminster Bank Plc <NWBL.L>.
    Lower rates were signalled by the Bank of England this
morning in an attempt to curb recent upward pressure on the
pound, market sources said.


.I 19644
.C
money-fx
.W
BANK OF ZAMBIA PAYS OUT FOREIGN CURRENCY ARREARS.
    LUSAKA, March 9 - The Bank of Zambia has paid out foreign
exchange arrears from three auctions conducted last year, a
bank spokesman said.
    "We have now cleared three auctions and are left with only
four, worth eight mln dlrs," the spokesman said without
specifying the amount paid out.
    The bank had not paid foreign exchange to private firms
since it suspended the weekly auctions on January 28.
    It has said the auctions were suspended because it planned
to introduce a modified system after talks with the World Bank
and the International Monetary Fund.
    President Kenneth Kaunda announced last month that the
auction would be retained for allocating foreign exchange to
approved private sector bidders, but would not be used to
determine the kwacha's exchange rate.
    Last week, he said the auction had run into trouble because
of a shortage of foreign exchange.
    The government has fixed the exchange rate at nine kwacha
per dollar, effectively revaluing the kwacha by 67.7 pct.


.I 19645
.C
acq
.W
INVESTORS HAVE 5.5 PCT OF DATAREX SYSTEMS <DRX>.
    WASHINGTON, March 9 - A small investor group led by Melvyn
Gelch, a Providence, R.I., surgeon, told the Securities and
Exchange Commission it has acquired 60,840 shares of Datarex
Systems Inc, or 5.5 pct of the total outstanding common stock.
    The Gelch group said it bought the stake for about 935,000
dlrs for investment purposes only.


.I 19647
.C
cocoa
.W
GHANA COCOA PURCHASES FALL, CUMULATIVE STILL UP.
    LONDON, March 9 - The Ghana Cocoa Board said it purchased
1,323 tonnes of cocoa in the 21st week, ended February 26, of
the 1986/87 main crop season, compared with 1,961 tonnes the
previous week and 1,344 tonnes in the 21st week ended March six
of the 1985/86 season, the board said.
    Cumulative purchases so far this season stand at 216,095
tonnes, still up on the 201,966 tonnes purchased by the 21st
week of last season, the Board said.


.I 19650
.C
sugar
.W
EC SUGAR IMPORT LEVIES.
    BRUSSELS, MARch 9 - The following import levies for white
and raw sugar are effective tomorrow, in European currency
units (ecu) per 100 kilos.
    White sugar, denatured and non-denatured 49.70 versus 50.05
previously.
    Raw sugar, denatured and non-denatured 41.35 versus 41.35
previously.
    The rate for raws is based on 92 pct yield.


.I 19651
.C
acq
.W
INVESTOR HAS TECHNOLOGY DEVELOPMENT <TDCX> STAKE.
    WASHINGTON, March 9 - Leon Greenblatt, a Chicago investor,
told the Securities and Exchange Commission he has acquired
89,450 shares of Technology Development Corp, or 5.3 pct of the
total outstanding common stock.
    Greenblatt said he bought the stock for 350,000 dlrs soley
as an investment and has no intention of seeking control of the
company.


.I 19657
.C
acq
.W
******ANALYST SAYS DART GROUP LIKELY BIDDER FOR SUPERMARKETS GENERAL.
Blah blah blah.

.I 19661
.C
acq
.W
HARRIS CUTS CYCLOPS <CYL> STAKE TO 11.1 PCT.
    WASHINGTON, March 9 - Harris Associates L.P., a Chicago
investment advisory firm, said it cut its stake in Cyclops Corp
to 437,425 shares, or 11.1 pct of the total outstanding common
stock, from 524,775 shares, or 13.3 pct.
    In a filing with the Securities and Exchange Commission,
Harris said it sold 87,350 Cyclops common shares between Jan 6
and March 2 at prices ranging from 65.75 to 91.00 dlrs a share.
    Harris said its dealings in Cyclops common stock were made
on behalf of its advisory clients.


.I 19663
.C
acq
.W
CHRYSLER <C> VALUES AMC <AMO> AT 757 MLN DLRS.
    DETROIT, March 9 - Chrysler Corp said it valued its
proposed buyout of American Motors Corp at 757 mln dlrs, not
counting the effect of a contingent payment that could reach
350 mln dlrs based on AMC's future profits.
    A Chrysler spokesman told Reuters that the letter of intent
signed with Renault, AMC's controlling shareholder with a 46.2
pct direct stake, includes a provision for Renault to be paid
35 mln dlrs in cash for AMC's finance subsidiary and 200 mln
dlrs in the form of an eight pct note. He said he did not know
the maturity of the note.


.I 19664
.C
earn;acq;
.W
DART SAID LIKELY SUPERMARKETS GENERAL SUITOR.
    NEW YORK, March 9 - Dart Group <DARTA> is likely seeking to
buy Supermarkets General <SGL>, analysts said.
    "There's been rumors that they've taken a position in the
company, said Wood Gundie analyst Edward Comeau.
    Last year, Dart Group, owner of Auto Trak INc and Crown
Books, competed against Kohlberg, Kravis to acquire Safeway
Stores INc.
    The company later reached an accord under which it would
buy 20 pct of the company after Kohlberg Kravis completed its
leveraged buyout of the company.
    The company later sold its 20 pct stock for about 180 mln
to 200 mln dlrs, according to analysts.
     Dart Group Corp was not immediately available for comment.
    Jerry Ballan, analyst with Conner Ballan division of Edward
Viner and Co, said, "They <Dart> has been rumored to be buying
some other supermarkets as well, such as Stop and Shop."
    "My guess is that Supermarkets General does not want to be
bought out," said Ballan.
    Analysts, however, said Supermarkets General is facing
problems due to its Purity Supreme and Rickels operations,
which might make it difficult to thwart a bid.
    Supermarkets General is expected to report about 1.70 dlrs
a share compared to a 1.73 dlrs a share reported for 1985 on a
post stock split basis.
    For the first quarter, Comeau predicts the company will
earn 39 cts a share from 35 cts a share a year ago, and should
earn about 2.05 dlrs for 1987.
    "But that estimation could go to a 1.80 dlrs easily, due to
Purity Supreme in New England," Comeau said.
    He said competition among supermarkets is getting heated in
that area and that the company has had difficulty with
integrating Purity Supreme with its Pathmark store operations.
    Rickels, a home center business, has faced problems due to
the state of that industry, and has reported lower returns as
an operating unit, according to analysts.
    Analysts said that if Dart buys Supermarkets General it
would probably divest the company's operations.
    Analyst Comeau said "supermarkets general may seek a
combination with another supermarket company."

.I 19665
.C
earn
.W
ADVO-SYSTEM INC <ADVO> SEES BREAK-EVEN 2ND QTR.
    HARTFORD, Conn., March 9 - ADVO-System Inc said it could
report a break even second quarter ending March 28, 1987
compared with a loss of 1.8 mln dlrs, or 16 cts a share, in
fiscal 1986's second quarter ended March 29, 1986.
    ADVO said it previously announced it would report a net
loss for the quarter.


.I 19668
.C
gnp;money-supply;
.W
FED WATCHERS SEE U.S. ECONOMIC, INFLATION UPTURN.
    NEW YORK, March 9 - This year will see a pickup in U.S.
economic growth and inflation, the Shadow Open Market Committee
said in its semi-annual policy statement.
    The SOMC, a group of basically "monetarist" private
economists, said that "economic growth will accelerate in 1987
in response to powerful stimulative actions by the Federal
Reserve."
    The group said the Fed's actions have been excessive. As a
result, it said that "inflation and ultimately another
recession now loom on the horizon."
    The SOMC said that central bank policies that rely on
progressively larger swings in monetary expansion will not lead
to sustainable economic growth and stable prices.
    The group made no specific nominal forecasts of economic or
inflation growth in its policy statement. However, the
Committee at its Sunday policy-making meeting said it was
basically in accord with projections by Jerry Jordan, who is a
member of the SOMC and economist at First Interestate Bancorp.
    Jordan expects real GNP growth to be about one percentage
point higher than in the past two years. He expects consumer
prices to rise about 4-1/2 pct this year.
    The SOMC said in recent months rapid money growth has been
a principal cause of the devaluation. To avoid another costly
inflation and disinflation, the SOMC urged the Fed to "abandon
its inflationary policy and set the growth rate of the monetary
base on the path toward sustained lower inflation."
    The Fed in February said it would no longer target the
narrow M-1 money supply because the link between M-1 and
economic growth has been largely severed.


.I 19669
.C
earn
.W
******CANADIAN PACIFIC LTD 4TH QTR OPER NET 30 CTS VS 20 CTS.
Blah blah blah.

.I 19671
.C
bop
.W
DUTCH CURRENT ACCOUNT SURPLUS FALLS IN 1986.
    THE HAGUE, March 9 - The Dutch current account surplus fell
5.4 billion guilders last year to a provisional 12.1 billion
guilders, the Finance Ministry said in a statement.
    The surplus is expected to fall further in 1987, the
statement said, but gave no details. Earlier today, the
official planning agency CPB said it expected the surplus to
fall to six billion guilders during 1987.
    The visible goods surplus excluding energy fell by 5.6
billion guilders in 1986 to 11.4 billion due to declining terms
of exchange, while more goods were imported as consumer
spending and investment increased.
    While the energy trade balance surplus rose by 5.4 billion
guilders, 4.7 billion of this gain was caused by temporary
improvements of terms of exchange and was aided by the delay
between the fall in oil and gas prices.
    The current account showed a 5.2 billion guilder deficit on
invisibles, compared with a balance in 1985, the Finance
Ministry said, noting the surplus on transport services was
reduced substantially due to the lower dollar and oil price
falls.
    The fourth quarter current account showed a deficit, for
the first time since 1980, of 700 mln guilders, it said.


.I 19673
.C
acq
.W
GRANDVIEW ACQUIRES CONTROL OF U.K. TICKET GROUP.
    TORONTO, March 9 - Consolidated Grandview Inc said it
acquired a 60 pct stake in <All Ticket Group PLC>, of London,
for undisclosed terms. The seller was also undisclosed.
    All Ticket is a special events travel company with
exclusive European rights to UAL Inc <UAL>'s United Airlines
Apollo system, booking all United Airlines flights in Britain
and Europe. All Ticket and its subsidiaries will also
co-sponsor various events this year including the British Open
golf tournament and rowing's Henley Regatta.
    Its 1986 revenues totaled 12 mln Canadian dlrs.
   


.I 19674
.C
acq
.W
UNITED CITIES <UCIT> MAKES ACQUISITION.
    BRENTWOOD, Tenn., March 9 - United Cities Gas Co said it
has acquired Lyle Propane Gas Co, a Cairo, Ga., propane gas
distributor, for undisclosed terms.
    It said Lyle has sales of about four mln gallons annually
and serves about 4,000 customers in seven counties in southwest
Georgia and north Florida.


.I 19675
.C
interest
.W
U.S. BILL AUCTIONS SEEN AT 5.63-65, 5.59-61 PCT.
    NEW YORK, March 9 - The U.S. Treasury's weekly auction is
expected to produce an average rate of 5.63-65 pct for
three-month bills and one of 5.59-61 pct for six-month bills,
dealers said.
    Shortly before auction time on the new bills, the rate on
the outstanding three-month bills was unchanged at 5.64 pct
bid, while the rate on the six-month bills was one basis point
higher at 5.68 pct bid.


.I 19676
.C
earn
.W
MEDICAL PROPERTIES <MPP> SETS MONTHLY DIVIDEND.
    ENCINO, Calif., March 9 - The board of Medical Properties
Inc said it has declared an initial monthly cash dividend of
11-1/2 cts a share and has adopted a monthly dividend policy.
    The initial dividend will be payable April 10 to
shareholders of record March 31.


.I 19678
.C
ship
.W
LONDON GRAIN FREIGHTS.
    LONDON, March 9 - FIXTURE - wheat Ria Luna 20,000 mt
Norrkoping and Djuron/EC Mexico 12.50 dlrs option loading
Uddevalla at 50 cents less 4,000/1,500 16-23/3 Continental.
    Reference New York Grain Freights 2 of March 6, brokers say
the charterer of the Saturn from US Gulf to Japan is reported
to be Nordstrom and Thulin, while the Antigone is reported to
have been arranged from Tilbury to the Black Sea by Soviet
charterers.


.I 19680
.C
earn
.W
IMMUCOR <BLUD> SPLITS STOCK.
    NORCROSS, Ga., March 9 - Immucor Inc said its board of
directors has declared a five-for-four stock split in the form
of a 25 pct stock dividend payable April 15 to shareholders of
record March 27.
   


.I 19681
.C
ship
.W
BERMUDA STAR LINE <BSL> TO MAKE ACQUISITION.
    TEANECK, N.J., March 9 - Bermuda Star Line Inc said it has
agreed in principle to acquire 815-passenger SS Liberte from
Barnstead Shipping Ltd for use in its New York/Montreal
"Northeast Passages" cruises, starting this summer.
    The company said it is working to conclude a lease
financing or other financing for the purchase of the 23,500 ton
vessel, which is to be delivered in early April and renamed
Canada Star.
    Terms were not disclosed.


.I 19683
.C
acq
.W
TALKING POINT/CAESARS WORLD <CAW>.
    By Greg Calhoun, Reuters
    LOS ANGELES, March 9 - <MTS Acquisition Corp's>
28-dlr-per-share offering price for Caesars World Inc is
thought to be much too low and is likely to attract other
suitors for the hotel/casino company, industry analysts said.
    "I think someone else will probably come in, or they (MTS)
will have to raise their bid," said Marvin Roffman, an analyst
at Janney Montgomery Scott Inc.
    MTS, a company formed by Martin Sosnoff, Caesars World's
largest shareholder, today began a tender offer, valued at
725.2 mln dlrs, for all shares Sosnoff doesn't already own.
    "I think the offer is too low by at least five points,"
said Roffman, who described Caesars World as the operator of
"one of the finest casinos in the world."
    Sosnoff, a New York investor, already owns 13.3 pct of
Caesars World's 30.3 mln shares.
    Following news of the tender offer Caesars World's shares
were trading at 27-7/8, up 3-3/8.
    A Caesars World spokesman said the company was declining
comment on the Sosnoff move for the moment, but Caesars may
issue a public statement after it has studied the offer.
    Roffman said Caesars World has considerable growth
potential and he is forecasting fiscal 1988 earnings of two
dlrs per share.
    Caesars World owns casino hotels in Nevada and honeymoon
resorts in Pennsylvania's Pocono Mountains. It also controls
Caesars New Jersey Inc <CJN>, which owns an Atlantic City,
N.J., casino hotel.
    For its fiscal year ended July 31 Caesars World reported
net income of 41 mln dlrs, or 1.36 dlrs per primary share.
    The company reported second quarter net income of 12.6 mln
dlrs, or 41 cts per share, compared with income of 7.5 mln
dlrs, or 25 cts per share a year earlier.
    Daniel Lee, an analyst at Drexel Burnham Lambert Inc, said
that although Sosnoff's relatively low bid may attract other
suitors willing to pay a higher price for Caesars, there is
little likelihood that a competing bid would start a battle for
the company.




.I 19685
.C
acq
.W
ALLEGHENY <AG> OFFICERS TO RUN COMPANY.
    New York, March 9 - Allegheny International Inc said its
chairman and chief operating officer will remain in their
positions following the merger of the company with an affiliate
of First Boston Corp.
   "It is expected that Oliver S. Travers will continue as
chairman, president and Chief executive officer, and Thomas J.
Albani will continue as chief operating officer," said an
Allegheny spokesman.
    Allegheny today said it agreed to a buyout from First
Boston at 24.60 dlrs per share. The transaction was valued at
500 mln dlrs. Its stock rose 8-5/8 to 24 in active trading.


.I 19686
.C
acq
.W
IC GAS MAKES NO RECOMMENDATION ON TRACTEBEL OFFER.
    LONDON, March 9 - Imperial Continental Gas Association
<ICGS.L>, IC Gas, said its board is not making a recommendation
on the partial tender offfer at 710p per share announced by
<Tractebel SA> and <Groupe Bruxelles Lambert SA>.
    At the same time, however, the board would not recommend a
general offer for all the shares at a price of 710p, the
statement added.
    Shareholders wondering whether to tender either to the
Tractebel consortium or to the rival 700p per share partial
offer from <SHV Holdings NV> should consult professional
advisers.


.I 19688
.C
acq
.W
NAT'L HEALTHCARE <NHCI> TO SELL FIVE HOSPITALS.
    BOTHAN, Ala., March 9 - National Heathcare Inc said it
signed an agreement to sell five rural hospitals to a private
corporation for about 18 mln dlrs, including the assumption of
six mln dlrs of debt.
    The company said it plans to complete the sales, which are
subject to various regulatory approvals, by the end of July.
    National Healthcare said it expects no material gain on
loss on the sales and that substantially all proceeds will be
used to reduce debt.


.I 19689
.C
dlr;money-fx;acq;trade;
.W
USX <X> CHAIRMAN CALLS FOR LOWER DOLLAR.
    NEW YORK, March 9 - USX Corp chairman David Roderick called
for a lower value for the U.S. dollar against other currencies
to help speed a correction in the U.S. trade deficit, which
last year reached 170 billion dlrs.
    In remarks prepared for a speech before the Economic Club
of Detroit, Roderick said, "There should be total resolve that
the dollar versus other major currencies, as well as the
currencies of other nations having a substantial trade surplus
with us, must continue to decline so that the correction in our
trade deficit starts on the road to recovery."
    Roderick said the U.S. should be understanding of the
"economic pain" our trading partners experience as a result of
a falling dollar.
    But, he added, "As painful as the correction may be to our
trading partners, it is less painful than leaving the problem
uncorrected because that would lead us into an inevitable,
lengthy and steep world recession."
    Roderick said between February 1985 and December 1986 the
dollar fell by more than 40 pct in real terms against major
industrial currencies and by 30 to 35 pct against a broader
group of currencies of nearly all developing nations.
    At the end of 1986, he said, the value of foreign assets in
the U.S. exceeded the value of U.S. assets abroad by 240
billion dlrs, compared to five years ago when the U.S. had a
surplus in assets of 141 billion. A company spokesman said the
data were provided by economic consultants to USX.
    The primary reason for the trade imbalance was the 70 pct
rise of the dollar between 1980 and 1985, although other
factors were involved, Roderick said. But it is wrong, he said,
"to attribute the massive trade deficit to a fundmental
deterioration of U.S. productivity or of American product
quality."
    These areas need to be improved but they are not the root
cause of the trade gap problem, Roderick said. He urged
American manufacturers to become more competitive so they can
compete in global markets.
    In the speech, the USX chairman also called for changes in
securities laws to curb what he called abuses by corporate
raiders and speculators.
    Among his proposals, which he presented to the Senate
Banking Committee in testimony last week, were a requirement
that raiders give 24-hour notice for every one pct of stock
they acquire in a company.
    Roderick proposed that tender offers must be made for all
cash to all stockholders on equal terms and that raiders be
required to have financing in place before a tender is made.
    Further, raiders should be required to make an all-cash
tender offer once they acquire 10 pct of a target company's
stock, he said. And payment of greenmail, or a preferential
price by a target company to buy back a raider's stake, should
be prohibited under the revised laws.
    Roderick said changes were necessary to curb abuses but
that he did not want laws that would hurt the financial markets
or discourage "fair price to all" takeovers.


.I 19691
.C
earn
.W
CANADIAN PACIFIC (CP) CONFIRMS EARNINGS.
    MONTREAL, March 9 - Canadian Pacific Ltd said fourth
quarter 1986 operating profit rose to 91.6 mln dlrs, or 30 cts
a share, from 50.7 mln dlrs, or 20 cts a share, a year ago.
    The statement confirmed released preliminary earnings
figures the company released in February.
    A 102.6 mln dlr gain on the sale of CP's Cominco Ltd
interest helped raise final 1986 fourth quarter profit to 193.8
mln dlrs or 65 cts a share.
    The company said a drop in 1986 full-year operating profit
to 150.1 mln dlrs from a restated 252.7 mln dlrs in 1985 was
due mainly to lower world oil prices.
    The company said its CP Rail division reported 1986 net
income of 119.4 mln dlrs, compared with 133.4 mln dlrs in 1985.
It said grain traffic recovered from drought-affected levels of
a year ago but was offset by weakness in other traffic areas
and increased expenses.
    It said the net loss from its Soo Line increased to 33.5
mln dlrs loss from 8.7 mln dlrs loss in 1985, mainly due to
restructuring charges.
    Canadian Pacific said favorable developments during the
year included reduced bulk shipping losses as a result of a
recovery in tanker markets and a turnaround in the forest
products sector.


.I 19693
.C
earn
.W
FORD <F> SHARES RISE ON HIGHER EARNING ESTIMATE.
    NEW YORK, MARCH 9 - Ford Motor Co's stock rose 1-1/4 to
82-1/4 after analyst Maryann Keller of Furman Selz Mager Dietz
and Birney raised earnings estimates on the company, traders
said.
    Keller said that she expects the company's 1987 earnings to
rise to between 13.50-to-14 dlrs a share as compared to 12.32
dlrs a share earned last year.
    She said Ford's already good market share is expected to
remain favorable and earnings from overseas are expected to
improve.
    In addition, Keller said, the company is selling more of
its expensive model cars, which are more profitable.
    The non-automotive operations, including Ford Motor Credit,
are also expected to post improved earnings this year.
    Keller said she expects the company to split its stock and
raise its dividend to at least three dlrs a share this year.
    She noted that Chrysler Corp's <C> announcement of a merger
proposal for American Motors Corp <AMO> should have no short
term effect on Ford but could cut into Ford's share of the
truck market in the long term.


.I 19694
.C
wheat;grain;
.W
ITALY SHOWS INTEREST IN U.K. NEW CROP WHEAT.
    LONDON, March 9 - Italy has shown interest in British new
crop wheat recently but the actual volume booked so far by
Italian buyers has not been large, traders said.
    They put purchases at around 50,000 tonnes for Sept/Dec
shipments but said some of the business was transacted at the
start of the year.
    Italian interior home markets have been active in recent
weeks and traders said around 200,000 tonnes have traded
between dealers and home consumers. Some of this has been
covered in the market here and more possibly will be, traders
said.


.I 19695
.C
earn
.W
DUTCH RETAILER AHOLD SEES UNCHANGED 1987 PROFIT.
    ZAANDAM, Netherlands, March 9 - Dutch food retailer Ahold
NV <AHLN.AS> expects unchanged profits in 1987 but said it will
take advantage of the lower dollar to expand further in the
U.S.
    Turnover will grow but net profits are expected to remain
around the 1986 level of 132.4 mln guilders due to higher Dutch
taxes and a three-year expansion plan, Ahold Chairman Albert
Heijn told a news conference.
    The profit forecast allows for a dollar rate around current
levels of just over three guilders.
    Turnover and net profit in 1986 were hit by the dollar,
which fell to an average 2.46 guilders from 3.35 in 1985.


.I 19697
.C
earn
.W
PITT-DES MOINES <PDM> GETS QUALIFIED AUDIT.
    PITTSBURGH, March 9 - Pitt-Des Moines Inc said it will
receive a qualified opinion from auditors on its 1986 and 1985
financial statements.
    It said the qualification related to its inability to
determine the effects, if any, of the final resolution of a
suit filed against it by <Washington Public Power Supply
System>.  The 1985 suit was dismissed in a 1986 lower court
action, but the ultimate outcome of the matter is still
uncertain since Washington Public Power has appealed to the
U.S. Court of Appeals.


.I 19698
.C
acq
.W
READING <RDGC> TO SELL PHILADELPHIA PROPERTIES.
    PHILADELPHIA, March 9 - Reading Co said it has agreed in
principle to convey properties it owns in and around the
Philadelphia Convention Center site to the city of Philadelphia
and the Philadelphia Convention Center Authority.
    It said in exchange it will receive about 23 mln dlrs in
cash, rights to acquire 22 acres adjacent to the Philadelphia
International Airport and an option to acquire the development
rights over the Gallery II shopping mall on Market Street in
downtown Philadelphia.
    Reading said it will be responsible for the demolition and
cleanup of certain of the properties, for which a portion of
the cash proceeds will be escrowed.
    The company said it will continue to own and operate the
Reading Terminal Market in Philadelphia.
    The land it is giving up amounts to about seven acrease and
includes part of the Reading Terminal Train Shed, it said.


.I 19699
.C
acq
.W
MONTEDISON ACQUIRES ARCO RESEARCH UNIT.
    MILAN, March 9 - Montedison SpA <MONI.MI> has acquired a 70
pct stake in <Plant Cell Research Institute - PCRI> of
California from Atlantic Richfield Co <ARC.N> for "several tens
of millions of dollars," a senior Montedison executive said.
    Renato Ugo, a member of Montedison's management committee,
told reporters that <Stanford Research Institute International>
of Menlo Park, California, had acted as a partner in the
purchase, itself acquiring a stake in PCRI of under 10 pct.
    PCRI, based in Dublin, California has a biotechnology
research laboratory.
    Ugo said the price paid included outlays for the laboratory
technology and staff.
    He said other negotiations were under way with
biotechnology companies in the health care and diagnostics
sectors through Montedison's health care subsidiary <Erbamont
NV>, but gave no details.
    "We hope they will be concluded by the year end," he said.
    Montedison currently invests around 30 billion lire a year
in biotechnology research and expects to increase this figure
to around 50 billion lire in the next few years.


.I 19700
.C
hog;livestock;l-cattle;
.W
LMFE TO CONCENTRATE ON CASH SETTLED CONTRACTS.
    LONDON, March 9 - The London Meat Futures Exchange, LMFE,
will cease trading in its deliverable pigmeat contract from
April 3, the LMFE said.
    The move will enable the exchange to concentrate on the
cash settled contracts introduced last year.
    "This allows the exchange and its members to concentrate our
marketing on the pig and live cattle contracts," LMFE official
Peter Freeman said. "These two have already shown their
effectiveness for hedging, and the trade in both contracts is
increasing," he added.
    "Using the futures market allows better planning and forward
price fixing that our industry needs," chairman Pat Elmer said.
    Some 131 pig contracts were settled against the Meat and
Livestock Commission's Average All Pigs Price in February,
which represents hedging for over 13,000 pigs, more than twice
the number cash-settled in January, the LMFE said.
    Cash settlement on the new cattle and pig contracts was
introduced last June in the expectation that the appeal of the
futures market to farmers, abattoirs and users of meat would
increase because of the absence of a delivery requirement.


.I 19704
.C
oilseed;wheat;grain;corn;soybean;
.W
CBT TRADERS SEE LOWER SOYBEAN EXPORT INSPECTIONS.
    CHICAGO, March 9 - The USDA's weekly export inspection
report is expected to show a decline in soybean exports and
steady to slightly lower corn and wheat exports, according to
CBT floor traders' forecasts.
    Traders projected soybean exports at 15 mln to 16 mln
bushels, down from 20.3 mln bushels a week ago and 25.5 mln
bushels a year ago.
    Corn guesses ranged from 20 mln to 25 mln bushels, compared
with 21.9 mln bushels a week ago and 28.2 mln a year ago.
    Wheat guesses ranged from 13 mln to 18 mln bushels,
compared with 14.1 mln bushels a week ago and 17.9 mln a year
ago.


.I 19705
.C
interest;stg;
.W
PRIMARY EUROSTERLING MARKET BOOMS DESPITE RATE CUT.
    By Dominique Jackson, Reuters
    LONDON, March 9 - Two new eurosterling bonds were launched
today, making a total of 10 new deals in the sector so far this
month, as borrowers rush to cash in on a bull sterling market
fueled by the strength of the pound and pre-budget euphoria.
    The Bank of England finally gave way to a 1/2 point cut in
banks' base lending rates earlier today, but dealers said this
had been largely discounted and was not likely to detract from
the current popularity of sterling-denominated investments.
    "Sterling, in any shape or form, is flavor of the month and
we're set to see many more eurosterling deals," one dealer said.
    Today's new eurosterling bonds were a 10-year, 100 mln stg
deal for Sweden at 9-1/2 pct and priced at 101-1/4 pct, lead by
Baring Brothers and Co Ltd and a 14 year 60 mln stg convertible
deal for Storehouse Plc launched by SBCI International Ltd. "We
thought we saw a proverbial flood of new deals with the 14 we
had last month but it seems March will beat February hands down
with 10 already," one eurosterling specialist said.
    "Optically, psychologically, these single figures are much
more attractive for the borrower. Eurosterling looks like a
cheap and attractive way to raise your money," he added.
    This accounts for the wide variety of borrowers who have
tapped the sector recently, ranging from sovereigns such as the
Kingdom of Sweden today, continental banks including
Commerzbank and Deutsche Bank and British corporations.
    Another U.K. Merchant bank analyst noted that the current
vogue for eurosterling enabled several corporate borrowers last
month to offer paper priced below comparative gilt yields.
    A Storehouse official confirmed that the issue was aimed at
Swiss and German investors who were showing good interest.
    This is the first entry into the long term international
capital markets by Storehouse, British designer Terence
Conran's retail conglomerate which incorporates U.K. Chain
stores Mothercare, British Home Stores and Habitat.
    "We have been considering the move for quite some time now
and the current strength of the eurosterling sector provided
the perfect opportunity and spur for us to finally tap the
market," Lance Moir, corporate treasurer at Storehouse Plc told
Reuters.


.I 19707
.C
ship
.W
EUROPE SHIPPING EXPORTS TO S AFRICA OFF 40 PCT.
    JOHANNESBURG, March 9 - The volume of European exports to
South Africa carried by container line vessels has declined 40
pct in the last two years, British shipping executive Antony
Butterwick said.
    Butterwick told reporters that despite the drop and low
freight rates, the shipping conference he heads will increase
the frequency of sailings to South Africa as a "very strong act
of faith and confidence" in the country's future.
    He is chairman of the Europe South and South-East African
Conference Lines and joint managing director of P and O
Containers Ltd.
    A statement issued by the conference here said frequency of
Southern Africa/Europe container service sailings is being
increased from nine to seven days.
    "This is the most positive development on the shipping front
between South Africa and its main trading partners in Europe
for more than four years, when the service last operated
weekly," it said.


.I 19709
.C
acq
.W
MATHEMATICAL APPLICATIONS SETS OPERATIONS SALE.
    ELMSFORD, N.Y., March 9 - Mathematical Applications Group
Inc said it has signed a letter of intent to sell all of its
operating business and will propose a plan of liquidation
following the sale.
    If the company is unsuccessful in obtaining the approvals
needed for the sale and liquidation, it said, the company may
be required to initiate reorganization proceedings under
federal bankruptcy law to facilitie the distribution of its
assets.
    Mathematical Applications said it tentatively agreed to
sell its direct marketing business to Pagex Inc for 400,000
dlrs plus an amount equal to the working capital of the
business at closing as well as a 1.7 mln dlr note payable in
installments over six years.
    Mathematical Applications said the business' working
capital is estimated to be about 600,000 dlrs.
    Pagex has been formed by Paul A. Goldner the owner of Pagex
Systems Inc, which is also engaged in the direct marketing
computer service business.
    Mathematical Applications said the tentative agreement
calls for Pagex to buy substantially all of the assets and
liabilities related to the direct marketing business and
continue to use the Mathematical Applications name.
    It said the sale is also subject to renegotiation of a real
estate lease and approval of a definitive agreement by the
company's board, stock holders and debenture holders.
    The company said it has obtained waivers from holders of
its six mln dlrs principal amount of debentures due March 31,
1993, to defer interest payments aggregating 270,000 dlrs
through March 31, 1987. The company said it will seek waivers
to defer these interest payments, and those due March 31, for
enough time to enable the company to accomplish the proposed
sale of its operations.
    Mathematical Applications said it is talking to debenture
holders, its landlord, a lessor of equipment to the marketing
operation and holders of other liabilities not being assumed by
Pagex to arrange distribution of assets after the proposed
sale, adding that these assets will be significantly less than
its liabilities.
    The company said it has obtained waivers from holders of
its six mln dlrs principal amount of debentures due March 31,
1993, to defer interest payments aggregating 270,000 dlrs
through March 31, 1987. The company said it will seek waivers
to defer these payments, and those due March 31, for enough
time to accomplish the proposed sale of its operations.
    Mathematical Applications said it is talking to debenture
holders, its landlord, a lessor of equipment to the marketing
operation and holders of liabilities Pages is not assuming to
arrange distribution of assets after the proposed sale, adding
these assets will be significantly less than its liabilities.
    As part of the distribution of assets, the company said, it
expects shareholders to receive an amount based on the bid
price of the company's stock, which was 1/16 on March five.


.I 19712
.C
acq
.W
FINANCIAL CORP <FIN> UNIT COMPLETES PURCHASE.
    IRVINE, Calif., March 9 - Financial Corp of America's
American Savings and Loan Association said it completed the
previously announced purchase of 16 retail savings branches
from Great Western Financial Corp's <GWF> Great Western
Savings.
    American Savings said the purchases boost its deposits by
about 550 mln dlrs, but do not affect its asset base.


.I 19714
.C
money-fx;interest;
.W
CENTRAL BANKERS SATISFIED WITH PARIS ACCORD.
    BASLE, Switzerland, March 9 - Central bankers said they
were generally satisfied with the response to the Paris accord
two weeks ago to stabilize currencies at around current levels.
    Speaking after a meeting at the Bank for International
Settlements (BIS), which reviewed the agreement, they also
welcomed interest rates cuts in France and today's drop in
British rates.  One top official said the rate cuts would help
to stimulate growth generally in Europe and welcomed that
countries other than West Germany were seen to be helping
sustain the economy. 
    The central bankers, who spoke on the condition they not be
named, said the meeting of governors from the Group of 10
countries also heard a report from Michel Camdessus, the new
managing director of the International Monetary Fund, on the
IMF's latest assessment of the debt crisis. In particular, they
discussed Brazil's debt moratorium.
    But there was no sense of urgency, they said, and Brazil
had made no appeal for bridging loans from the BIS or central
banks.


.I 19717
.C
acq
.W
JOHNSON PRODUCTS <JPC> SELLS TWO SUBSIDIARIES.
c    CHICAGO, March 9 - Johnson Products Co Inc said it
completed the sale of Debbie's School of Beauty Culture Inc and
the assets of Ultra Precise Beauty Boutique Inc to management.
    It said the sale price of 2,533,000 dlrs consisted of
700,000 dlrs cash, a secured promissory note for 1,506,000 dlrs
and the forgiveness of a debt of 327,000 dlrs owed by Johnson
Products to Debbie's School.


.I 19720
.C
acq
.W
USAIR <U> SEEKS TWO BILLION LOAN FOR TAKEOVERS.
    WASHINGTON, March 9 - USAir Group Inc said it seeking two
billion dlrs in bank debt to complete its takeover of Piedmont
Aviation Inc <PIE> and its pending acquisition of PS Group
Inc's Pacific Southwest Airlines.
    In a filing with the Securities and Exchange Commission
that details its proposed 69 dlr a share cash tender offer for
Piedmont, USAir said Manufacturers Hanover Trust Co <MHC>
"indicates its willingness" in a March 6 letter to provide up
to 500 mln dlrs of the financing.
    Manufacturers Hanover would also to act as agent for a bank
group to raise the rest of the financing, USAir said.
    USAir said a Manufacturers Hanover affiliate is currently
agent for its 400 mln dlrs revelving credit facility, which
would be replaced by the proposed two billion dlr financing.
    USAir put its total cost of completing the tender offer at
1.7 billion dlrs. Its Pacific Southwest takeover, which has
received federal approval and is due to come up for shareholder
approval later this month, is for 17 dlrs a share, or 400 mln
dlrs total.
    USAir said it has already bought 2.3 mln Piedmont common
shares, or 9.9 pct of the total outstanding from Norfolk
Southern Corp <NSC> for 161.9 mln dlrs.
    The tender offer, which is being made through a USAir
subsidiary, USAG Acquisition Corp, would not be valid unless
USAir is left with more than half of Piedmont's total
outstanding common stock after the April 3 expiration.
    While negotiations on terms and interest rates of its bank
loans are not yet complete, USAir said it expects them to be in
the form of a one billion dlr two-year term loan and a one
billion dlr seven-year revolving credit facility.
    The company said it expects to repay the two-year loan
through equity, preferred and debt offerings and possibly
internal funds and the sale and/or leaseback of aircraft.


.I 19721
.C
oilseed;wheat;grain;corn;
.W
******U.S. EXPORT INSPECTIONS, IN THOUS BUSHELS  SOYBEANS 18,616 WHEAT 16,760 CORN 25,193.
Blah blah blah.

.I 19724
.C
acq
.W
JANNOCK ACQUIRES 50 PCT OF INTERCON SECURITY.
    TORONTO, March 9 - <Jannock Ltd> said it acquired a 50 pct
interest in Intercon Security Ltd for five mln dlrs and
Intercon founders Brian Legge and Richard Grange will hold the
remaining 50 pct and will continue to manage the company.
    Intercon Security, employing 850 people, provides a full
range of security equipment and services, Jannock said.


.I 19725
.C
crude
.W
 CANADIAN OIL COMPANIES RAISE CRUDE PRICES.
    NEW YORK, March 9 - Petro-Canada, the state-owned oil
company, said it raised the contract price it will pay for
crude oil 64 Canadian cts a barrel, effective March six.
    Petro-Canada's posted price for the benchmark light sweet
grade, Edmonton/Swann Hills at 40 api gravity, now stands at
21.95 Canadian dlrs/bbl. Their light sour grade is posted at
19.88 Canadian dlrs/bbl.
    Earlier today, Shell Canada <SHC> said it raised its crude
postings about 47 Canadian cts/bbl, bringing Edmonton light
sweet to 21.95 Canadian dlrs/bbl, and the light sour crude to
19.95 Canadian dlrs/bbl.
    Imperial oil <IMO.A>, a 70 pct owned subsidiary of Exxon
Corp, said that effective March five it also raised its light
sweet crude posting to 21.95 Canadian dlrs/bbl.


.I 19727
.C
acq
.W
******DART GROUP SAID IT OFFERS TO BUY SUPERMARKETS GENERAL AT 41.75 DLRS/SHR.
Blah blah blah.

.I 19728
.C
grain;corn;
.W
FINAL 50/50 CORN CERTS SEEN AT 1.6 BILLION DLRS.
    WASHINGTON, March 9 - The Agriculture Department will have
to release an estimated 1.6 billion dlrs worth of in-kind
certificates, or certs, to corn farmers this fall if USDA
decides to maintain an equal split of total 1986 feedgrain
deficiency payments in cash and certs, USDA officials said.
    Final 1986 crop deficiency payments will be available to
feed grain producers in October. Wheat deficiency payments for
the 1986 crop, now complete, were made in a 50/50
cash-certificate split, and USDA officials have indicated they
want to do the same for feedgrains.
    Over 3.2 billion dlrs of an estimated 6.0 billion in corn
deficiency payments have already been announced, with 1.42
billion dlrs (43 pct) set in certificates. The final payment
must be 1.6 billion dlrs in certs (57 pct) for a 50/50 split.
    However, the release this month of almost 600 mln dlrs of
deficiency payments was equally divided in cash and certs,
doing nothing to bring up the percentage of certs.
    Some USDA analysts said the payments reflected hesitation
from the Office of Managament and Budget to allow another huge
release of certs onto the market.
    Bills are pending in Congress to move up the final
feedgrain deficiency payment to "as soon as five months after
harvest as possible," rather than the current year lag time.
    Neither Rep. Edward Madigan (R-Ill.) nor Sen. Bob Dole
(R-Kans.), sponsors of the bills, have brought the legislation
forward. Aides said timing will depend on budget discussions.


.I 19731
.C
acq
.W
BCI HOLDINGS TO SELL BOTTLED WATER DIVISION.
    CHICAGO, March 9 - <BCI Holdings Corp>  said its <Beatrice
U.S. Food Corp> retained Shearson Lehman Brothers Inc to assist
in the sale of its national bottled water business.
    It said products of the subsidiary, based in Monterey Park,
Calif., are sold under the Arrowhead brand name in California
and Arizona, the Ozarka name in Texas and the Great Bear name
in 11 northeastern states.


.I 19732
.C
cocoa;coffee;sugar;heat;
.W
LCE AND IPE ELECT FIRST TRADED OPTIONS MEMBERS.
    LONDON, March 9 - The first 23 members have been elected to
the joint traded options facility of the London Commodity
Exchange (LCE) and the International Petroleum exchange (IPE),
the exchanges said in a statement.
    More firms have applied and the final tranche will be
admitted on April one and trading is planned to start in early
June on the new trading floor on Commodity Quay.
    Traded options need a volatile and liquid futures base to
succeed and chairman of the joint formation committee Jack
Patterson said the existing LCE cocoa, coffee, sugar and IPE
gas oil contracts should have no difficulty in providing this.


.I 19733
.C
grain
.W
******USDA ESTIMATES 1986/87 USSR GRAIN IMPORTS  26.0 MLN TONNES VS 23.0 IN FEB, 29.9 IN 1985/86.
Blah blah blah.

.I 19734
.C
grain
.W
******USDA ESTIMATES 1986 SOVIET GRAIN CROP  AT 210 MLN TONNES VS 210 IN FEB, 192 YEAR-AGO.
Blah blah blah.

.I 19735
.C
acq
.W
DART <DARTA> MAKES OFFER FOR SUPERMARKETS <SGL>.
    LANDOVER, Md., March 9 - Dart Group Corp said it offered to
buy Supermarkets General Corp for 41.75 dlrs per share in cash.
    Earlier Supermarkets General said an "unsolicited third
party" had made the offer. Analysts estimated the value at
about 1.6 billion dlrs, based on 38.5 mln shares outstanding.
    Kidder, Peabody and Co Inc told Dart that Kidder's
affiliate will be prepared to advance up to 750 mln dlrs on a
subordinated basis.



.I 19736
.C
wheat;grain;
.W
USDA ESTIMATES SOVIET WHEAT, COARSE GRAINS.
    WASHINGTON, March 9 - The U.S. Agriculture Department
forecast the Soviet 1986/87 wheat crop at 92.30 mln tonnes, vs
92.30 mln tonnes last month. It put the 1985/86 crop at 78.10
mln tonnes, vs 78.10 mln tonnes last month.
    Soviet 1986/87 coarse grain production is estimated at
103.30 mln tonnes, vs 103.30 mln tonnes last month. Production
in 1985/86 is projected at 100.00 mln tonnes, vs 99.99 mln
tonnes last month.
    USSR wheat imports are forecast at 15.00 mln tonnes in
1986/87, vs 14.00 mln tonnes last month. Imports in 1985/86 are
put at 15.70 mln tonnes, vs 15.70 mln tonnes last month. USDA
estimated Soviet 1986/87 coarse grain imports at 10.00 mln
tonnes, vs 8.00 mln tonnes last month, and 1985/86 imports at
13.70 mln tonnes, vs 13.70 mln tonnes last month.


.I 19737
.C
orange
.W
USDA ORANGE JUICE YIELD ESTIMATE.
    WASHINGTON, March 9 - The U.S. Agriculture Department
projected an average yield of 1.47 gallons of frozen
concentrated orange juice per box (42.0 degree brix equivalent)
from Florida's 1986/87 crop.
    That compares with 1.46 gallons per box previously and 1.38
gallons per box from the 1985/86 crop.
    The crop reporting board said the estimates for the 1986/87
season are based on maturity and yields tests as of March 1.


.I 19739
.C
potato
.W
USDA WINTER/SPRING POTATO ESTIMATES.
    WASHINGTON, March 9 - The U.S. Agriculture Department
estimated 1987 winter potato production, based on March 1
conditions, at 2,788,000 cwts (100 lbs), vs 2,764,000 cwts
indicated last month and 2,991,000 cwts last year.
    The department estimated winter potato area for harvest at
11,900 acres, vs 11,900 acres last month and 12,300 acres in
1986.
    The yield per harvested acre for winter potatoes is
estimated at 234 cwts per acre, vs 243 cwts last year.
    The department also projected 1987 spring potato crop area
planted at 79,300 cwts, vs 77,400 cwts last year, and area for
harvest at 76,700 acres, vs 75,900 acres harvested last year.


.I 19740
.C
hog;livestock;carcass;
.W
MEATPACKERS STRIKE MORRELL SIOUX CITY PLANT.
    CHICAGO, March 9 - About 800 members of the United Food and
Commercial Workers Union, UFCWU, struck John Morrell's Sioux
City, Iowa, pork processing plant at midnight Sunday, a
spokesman for the UFCWU national said.
    Meatpackers at the plant have been working without a
contract since the old pact expired January 31, UFCWU spokesman
John Mancuso said. The plant can slaughter and process about
13,000 to 14,000 hogs a day, he estimated.
    The UFCWU bargaining committee and full membership rejected
in late January a contract proposal by John Morrell, a
subsidiary of United Brands Inc, he said.


.I 19742
.C
acq
.W
CAESARS WORLD <CAW> BID VALUED AT 907 MLN DLRS.
    NEW YORK, March 9 - MTS Acquisition Corp said it will need
about 907 mln dlrs to acquire the 31,781,461 Caesars World Inc
shares not owned by its owner, Martin T. Sosnoff.
    The estimate came in MTS Acquisition's proxy statement to
Caesars World shareholders describing its offer of 28 dlrs a
share for their stock which was announced this morning.
    In that announcement, MTS Acquisition said its bank and
investor bankers felt they could provide financing totaling 975
mln dlrs for the offer.
    Sosnoff is Caesars World's largest shareholders with
4,217,675 of the company's shares. That is about 11.7 pct of
the outstanding stock on a fully diluted basis, the proxy said.
    Besides being the sole owner of MTS Acquisition, Sosnoff
owns 61 pct of Atalanta/Sosnoff Capital Corp's <ATL> stock and
is chairman of that investment management and brokerage firm.


.I 19744
.C
gold
.W
CAROLIN MINES HAS NEW GOLD ASSAY RESULTS.
    VANCOUVER, British Columbia, March 9 - Carolin Mines Ltd
said recent assays of tailings at its Hope, British Columbia
mine ranged from 0.50 to 0.64 ounces of gold per ton. 
    There were only trace amounts of platinum and palladium,
the company said.
    Carolin said the results sharply disagreed with an earlier
assay performed by Intergold U.S.A. Inc which showed 1.0 ounce
of gold per ton and 0.50 ounce of platinum per ton.
    Carolin also said it expects to receive results of further
tests and assays of the tailings within two to three weeks.


.I 19745
.C
wheat;grain;
.W
CCC WHEAT CREDIT GUARANTEES FOR NORTH YEMEN.
    WASHINGTON, March 9 - The Commodity Credit Corporation,
CCC, has authorized 25.0 mln dlrs in credit guarantees to North
Yemen to cover purchases of U.S. wheat under the Intermediate
Export Credit Guarantee Program (GSM-103), the U.S. Agriculture
Department said.
    Under the program credit terms extended must be in excess
of three yeras, but not more than seven years.
    All sales under the line must be registered and exports
completed by September 30, 1987, the department said.


.I 19746
.C
grain;barley;
.W
CCC ACCEPTS EXPORT BONUS BARLEY MALT TO NIGERIA.
    WASHINGTON, March 9 - The Commodity Credit Corporation,
CCC, has accepted one bonus offer from an exporter on the sale
of 4,400 tonnes of barley malt to Nigeria, the U.S. Agriculture
Department said.
    The department said the bonus awarded was 100.00 dlrs per
tonne and was made to Rahr Malting Co and will be paid in the
form of commodities from the inventory stocks of the CCC.
    The barley malt is scheduled for shipment during April,
1987.
    An additional 76,300 tonnes of barley malt are still
available to Nigeria under the Export Enhancement Program
initiative announced December 10, 1986, it said.


.I 19749
.C
gold
.W
CAROLIN MINES <CRLNF> HAS NEW ASSAY RESULTS.
    Vancouver, British Columbia, March 9 - Carolin Mines Ltd
said recent assays of tailings at its Hope, British Columbia
mine indicated that ounces of gold per ton ranged from 0.64 to
0.50.
    There were only trace amounts of platinum and palladium,
the company said.
    Carolin said the results sharply disagreed with an earlier
assay performed by Intergold U.S.A. Inc which showed one ounce
of gold per ton and 1/2 ounce of platinum per ton.
    Carolin also said it expects to receive results of further
tests and assays of the tailings within two to three weeks.


.I 19751
.C
ship
.W
SEAMAN'S STRIKE CONTINUES, MARINES UNLOAD SHIPS.
    RIO DE JANEIRO, March 9 - Brazilian marines were today
working on the unloading of ships at the local port as a
national strike by 40,000 seamen entered its 10th day without
signs of an agreement.
    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 received a 275 pct pay rise.
    Shipowners have offered a 100 pct raise, which the seamen
rejected.
    "Television reported that the port was operating at full
speed, but that's not true," a striking seaman told Reuters.
    "The marines are doing their best, but they don't have the
manpower nor the experience to control the situation in such a
quick period," he said.
    Port officials said the national halt had already caused
losses estimated at 1.5 mln dlrs.
    Despite the presence of marines, there were no reports of
incidents.


.I 19752
.C
wheat;grain;corn;
.W
USDA RAISES SOVIET GRAIN IMPORT ESTIMATE.
    WASHINGTON, March 9 - The U.S. Agriculture Department
increased its estimate of Soviet 1986/87 grain imports to 26
mln tonnes from last month's projection of 23 mln tonnes.
    In its monthly USSR Grain Situation and Outlook, USDA said
the increase reflected the return of the Soviet Union to the
U.S. corn market and continued purchases of both wheat and
coarse grain from other major suppliers.
    USSR wheat imports were projected at 15 mln tonnes, up one
mln from last month's estimate and 700,000 tonnes below the
preliminary 1985/86 figure.
    Soviet grain for feed use was estimated at a record 129 mln
tonnes. Record or near-record livestock inventories, along with
a dry fall which likely reduced late season pasturage, and a
cold winter have increased feed demand, USDA said.
    USSR meat and egg production in January rose only slightly
from the previous January's level, while milk production
increased by nearly six pct.
    Unusually cold weather in January and smaller increases in
roughage supplies during 1986 than in 1985 kept livestock
production from expanding as much as it did a year earlier,
USDA said.


.I 19754
.C
crude
.W
ECUADOR QUAKE TO CUT OIL REVENUES 800 MLN DLRS.
    Quito, march 9 - up to 300 people were feared dead and more
than 15,000 people left homeless by thursday's earthquake,
which will cost Ecuador close to 800 mln dlrs in lost petroleum
revenues, authorities said.
    They estimated the cost of repairing a damaged oil pipeline
at 150 mln dlrs.
    "the magnitude of the damages caused by the earthquake is
gigantic," president leon febres cordero said after inspecting
the damages in napo, the hardest-hit jungle province, 100 miles
from here.
    The quake damaged 40 km of an oil pipeline, forcing this
opec nation to suspend crude exports for four months, president
febres cordero said in a statement issued today by the
presidential press office.
    The country would lose an estimated 800 mln dlrs in crude
exports until the pipeline was repaired, the president said. It
would cost 150 mln dlrs to repair the pipelline which carries
oil from jungle oil fields over the andes to Balao, a pacific
ocean port.
    Crude traditionally accounts for up to two-thirds of
ecuador's exports.
    the quake triggered landslides, swelling the aguarico river
which burst it banks carrying away homes and huts in napo
province, health minister jorge brancho told reuters.
    "we fear that up to 300 people died in napo though there is
no way of now knowing the exact figure because many people have
disappeared," he said.
    Other estimates ranged as high as 500 dead.
    So far 20 corpses have been recovered, bracho said.
    Information Minister Marco Lara told reporters: "the number
of dead and injured is not known ... because we do not know how
many people lived in the homes hit by the landslides."
    Bracho said at least 15,000 were left homeless in the
cayambe district.


.I 19755
.C
acq
.W
******BUSINESS EDITOR THEODORE CROSS OFFERS 34 DLRS SHARE FOR HARPER AND ROW.
Blah blah blah.

.I 19756
.C
wheat;grain;
.W
USDA ESTIMATES CANADIAN CROPS.
    WASHINGTON, March 9 - The U.S. Agriculture Department
estimated Canada's 1986/87 wheat crop at 31.85 mln tonnes, vs
31.85 mln tonnes last month. It estimated 1985/86 output at
24.25 mln tonnes, vs 24.25 mln last month.
    Canadian 1986/87 coarse grain production is projected at
27.62 mln tonnes, vs 27.62 mln tonnes last month. Production in
1985/86 is estimated at 24.95 mln tonnes, vs 24.95 mln last
month.
    Canadian wheat exports in 1986/87 are forecast at 19.00 mln
tonnes, vs 18.00 mln tonnes last month. Exports in 1985/86 are
estimated at 17.71 mln tonnes, vs 17.72 mln last month.


.I 19757
.C
wheat;grain;
.W
USDA ESTIMATES AUSTRALIA WHEAT CROP.
    WASHINGTON, March 9  - The U.S. Agriculture Department
forecast Australia's 1986/87 wheat crop at 17.30 mln tonnes, vs
17.50 mln tonnes last month. It estimated 1985/86 output at
16.13 mln tonnes, vs 16.13 mln last month.
    Australian wheat exports in 1986/87 are forecast at 14.50
mln tonnes, vs 15.00 mln tonnes last month, while exports in
1985/86 are estimated at 15.96 mln tonnes, vs 15.96 mln last
month.


.I 19758
.C
acq
.W
BUSINESS EDITOR OFFERS 34 DLRS FOR HARPER <HPR>.
    WASHINGTON, March 9 - Theodore Cross, editor of Business
and Society Review, a business publication, said an investor
group he heads has offered to buy Harper and Row Publishers Inc
for 34 dlrs a share cash.
    In a filing with the Securities and Exchange Commission,
Cross said he proposed the takeover to the board of the New
York publishing house today.
    Cross, whose investor group includes his wife, Mary, said
they already hold 261,650 Harper and Row common shares, or 6.0
pct of the total outstanding common stock. They said they have
spent 3.5 mln dlrs on their stake so far.
    Cross said he proposed in a letter to Harper and Row that
the company be merged into a company Cross is forming.
    Suggesting that the total cost of completing the merger
would be 190 mln dlrs, Cross said he would use 20 mln dlrs of
his own money for the deal and up to 170 mln dlrs which would
be borrowed from the First National Bank of Boston under a
revolving credit facility the bank has agreed to provide.


.I 19759
.C
grain;corn;
.W
FRANCE TO REQUEST PERMANENT MAIZE REBATES.
    PARIS, March 9 - French maize producers will ask the EC
Commission to grant permanent maize export rebates following
the recent EC/U.S. Accord guaranteeing the U.S. An annual
export quota of two mln tonnes of maize for Spain over four
years, the French maize producers association, AGPM, said.
    The Commission has already decided to accord rebates for
the export of 500,000 tonnes of French maize, of which rebates
for around 100,000 tonnes have been granted.
    The request will be made when export certificates have been
granted for all the 500,000 tonnes, the AGPM said.
    The association said that the request would cover exports
to all destinations, adding that the Soviet Union, which has
important maize needs, is currently excluded from the list of
destination countries for the 500,000 tonnes of French maize.
    The U.S. Agriculture Department has forecast Soviet maize
imports for the 1986/87 campaign at 4.90 mln tonnes against
10.40 mln in 1985/86.


.I 19760
.C
dlr;money-fx;bop;trade;
.W
U.S. PAYMENTS GAP TO PERSIST, EX-FED CHIEF SAYS.
    NEW YORK, March 9 - The dollar will decline over the next
two to three years, but this is unlikely to result in a
complete reduction of the U.S. current account deficit, said
Anthony Solomon, chairman of S.G. Warburg (USA) Inc and former
president of the Federal Reserve Bank of New York.
    In a presentation to the Japan Society, Solomon said
without elaboration that he expects a "significant decline in
the dollar," within the next three years.
    "The dollar will fall more, but the current account deficit
will stop being reduced when it reaches its structural core,"
he said.
    Solomon described the structural core as about one-half of
the current 150 billion dlr annual deficit. He cited several
factors which will prevent an elimination of the deficit.
    For one thing, it is unlikely that there will be any new
investment in those manufacturing industries that shrank when
the dollar was at uncompetitive levels, he said.
    In addition, he said that the U.S. has an increased
propensity to import in order to satisify consumer tastes.
    Solomon forecast inflation at 4.5 pct by year-end, but said
it could be kept below five pct in the medium-term if oil
prices are stable and commodity values remain low.


.I 19761
.C
livestock
.W
CCC ACCEPTS EXPORT BONUS DAIRY CATTLE TO MOROCCO.
    WASHINGTON, March 9 - The Commodity Credit Corporation,
CCC, has accepted a bonus offer from an exporter on the sale of
13 head of dairy cattle to Morocco, the U.S. Agriculture
Department said.
    The department said the bonus awarded was 1,505.00 dlrs per
head and was made to Brown Swiss Enterprises Inc. It will be
paid in the form of commodities from CCC inventories.
    The cattle are for delivery during March 9-September 30,
1987.
    The department said the purchase completes the Export
Enhancement Program initiative for dairy cattle to Morocco
announced on April 16, 1986.


.I 19762
.C
livestock
.W
CCC EXPORT BONUS DAIRY CATTLE FOR CANARY ISLANDS.
    WASHINGTON, March 9 - The Commodity Credit Corporation,
CCC, has accepted a bonus offer from an exporter on the sale of
75 head of dairy cattle to the Canary Islands, the U.S.
Agriculture Department said.
    The department said the bonus awarded was 1,459.00 dlrs per
head and was made to T.K. International Inc. It will be paid in
the form of commodities from the inventory of CCC stocks.
    The cattle are for delivery during March-June, 1987, it
said.
    An additional 3,925 head of dairy cattle are still
available to the Canary Islands under the Export Enahcnement
Program initiative announced July 28, 1986, it said.


.I 19763
.C
instal-debt
.W
******U.S. CONSUMER CREDIT ROSE 536 MILLION DLRS IN JAN VS 144 MILLION DEC GAIN.
Blah blah blah.

.I 19764
.C
crude
.W
USX <X> UNIT RAISES SOME CRUDE POSTINGS.
    NEW YORK, March 9 - Marathon Petroleum Company, a
subsidiary of USX Corp <X>, said it raised the contract price
it pays for three grades of crude oil, effective March 6.
    Illinois Sweet and Indiana Sweet are both being raised 50
cts a barrel to 16.75 dlrs/bbl, and the Southern Michigan grade
is being raised 25 cts/bbl, also to 16.75 dlrs a bbl.
    The West Texas Intermediate grade was unchanged.


.I 19765
.C
earn
.W
******UNITED BRANDS INC 4TH QTR SHR PROFIT SIX CTS VS LOSS 11 CTS.
Blah blah blah.

.I 19766
.C
earn
.W
NATIONAL FUEL GAS <NFG> SETS SPLIT, HIGHER PAYOUT.
    NEW YORK, March 9 - National Fuel Gas Co said its board has
approved a two-for-one stock split and will consider an
increased cash dividend at its June meeting.
    The company also said management will recommend, at the
June board meeting, an increase of 12 cts per share in the
current annual dividend rate of 2.28 dlrs a share, raising it
to 2.40 dlrs per share, or 1.20 dlrs a share after the split.
    National Fuel Gas said the split will be paid to holders of
record May 29.  A spokeswoman said the distribution date for
the split has not been determined.
    The company said the split is subject to approval of the
Securities and Exchange Commission under the Public Utility
Holding Act. The company now has 11,928,871 shares outstanding.
            


.I 19767
.C
acq
.W
SENSORMATIC <SNSR> UPS CHECKROBOT <CKRB> STAKE.
    DEERFIELD BEACH, Fla., March 9 - Sensormatic Electronics
Corp said it upped its investment in CheckRobot Inc in the form
of 2.5 mln dlrs of convertible preferred stock, raising its
stake in CheckRobot to 42 pct from 37 pct on a fully diluted
basis.


.I 19769
.C
ship
.W
UNION, SHIPPERS AGREE TO CUT N.Y. PORT COSTS.
    NEW YORK, March 9 - The New York Shipping Association and
International Longshoremen's Association said they agreed to
cut cargo assessments at the Port of New York and New Jersey by
more than 50 pct on some labor intensive cargos.
    The charges on cargo handled by union workers will be
reduced to 2.85 dlrs a ton from 5.85 dlrs a ton, effective
April one, according to the agreement between the union and
shippers. The assessments are used to fund workers' benefits.
    "What were doing is lowering the price to get more bulk
cargo flowing through here," a spokesman for the New York
Shipping Association said.



.I 19770
.C
money-supply
.W
TREASURY BALANCES AT FED ROSE ON MARCH 6.
    WASHINGTON, March 9 - Treasury balances at the Federal
Reserve rose on March 6 to 3.879 billion dlrs from 3.467
billion dlrs the previous business day, the Treasury said in
its latest budget statement.
    Balances in tax and loan note accounts fell to 12.453
billion drls from 14.350 billion dlrs on the same respective
days.
    The Treasury's operating cash balance totaled 16.332
billion dlrs on March 6 compared with 17.817 billion dlrs on
March 5.


.I 19771
.C
ship
.W
CSX <CSX> UNIT SETS IMPROVED SHIPPING SERVICE.
    MENLO PARK, N.J., March 9 - CSX Corp's Sea-Land Corp unit
said it will offer improved containership services between
Puerto Rico and the East Coast and Gulf Coast of the United
States, beginning March 16.
    The carrier said it will provide shorter door-to-door
transit times, more convenient cargo availability and better
rail connections for traffic moving between Puerto Rico and
North America.


.I 19773
.C
gnp
.W
WORLD BANK REPORT CRITICISES PERU ECONOMIC PLAN.
    Lima, march 9 - a confidential world bank report on the
peruvian economy said the government's strategy does not offer
good prospects for medium and long-term growth and is likely to
quickly lead to inflation.
    The report, published today by an economic monthly, the
peru report, said the success of president alan garcia's
government in stimulating output last year to achieve eight pct
gross domestic product growth "represents gains in the short
term at the expense of the long."
    Government officials had no immediate comment on the
report, which advised a reduction in the overall size of the
public investment programme and greater emphasis on the
preservation of peru's export potential.
    The report said that although the government had succeeded
in cutting inflation 50 pct a year in the first half of 1985 to
under 70 pct, its stabilisation and reactivation programme was
encountering increasing difficulties.
    "an early renewal of inflationary pressures, linked to
monetary expansion, exchange rate devaluation and an easing of
price controls, appears not improbable," it added.


.I 19774
.C
gnp
.W
MINISTERS FEEL EC FORECASTS TOO PESSIMISTIC.
    BRUSSELS, March 9 - European Community finance ministers
discussed the economic outlook for the 12-nation bloc and many
said a recent gloomy forecast by the EC Commission was too
pessimistic.
    The Commission, the EC's executive authority, two weeks ago
cut its forecast for economic growth in the Community to 2.3
per cent for this year from 2.8 per cent predicted last autumn.
    It said economic prospects had been less promising over the
past few months because of a sharp fall in the value of the
dollar and a slowing of world trade -- factors which would
restrain Community exports.
    But diplomats said several member states, led by West
Germany, Britain and France, felt the forecast was too gloomy,
especially since it was drafted before a recent agreement
between the leading Western economic powers to stabilise
currencies around current levels.
    "Many delegations feel the (Commission's) report is rather
too pessimistic," said Belgian Finance Minister Mark Eyskens,
who chaired the meeting.
    The Commission, which slashed its growth forecast for West
Germany to two per cent from 3.2 per cent, has made clear it
feels Bonn has room to introduce additional measures to
stimulate its economy that would benefit the rest of Europe.
    But two top German officials, State Secretaries Otto
Schlecht and Hans Tietmeyer, told reporters Bonn saw no need at
the moment for action to bolster the EC's biggest economy.
    The diplomats said they were backed by Britain and France,
while Italy, Greece and Denmark supported the Commission's view
that Bonn should bring in new measures to aid EC growth.

.I 19775
.C
instal-debt
.W
U.S. CONSUMER CREDIT ROSE 536 MLN DLRS IN JAN.
    WASHINGTON, March 9 - U.S. consumer instalment credit rose
a seasonally adjusted 536 mln dlrs in January after a revised
rise of 144 mln dlrs in December, the Federal Reserve Board
said.
    The annual rate of growth in January was 1.1 pct, up from
0.3 pct in December. Previously the Fed said consumer credit
rose 105 mln dlrs in December.
    Among the credit categories, auto credit fell in January to
1.02 billion dlrs from 2.06 billion dlrs in December, the Fed
said.
    Revolving credit in January fell by 366 mln dlrs after
rising by 552 mln dlrs in December.
    Mobile home credit was up by 130 mln dlrs after falling by
21 mln dlrs in December.
    The category referred to as "other," covering bank and credit
union loans, fell by 250 mln dlrs in January after declining by
2.44 billion dlrs in December, the Fed said.
    Before seasonal adjustment, consumer credit outstanding
totaled 580.37 billion dlrs at the end of January, compared
with 531.29 billion dlrs at the end of January, 1986.


.I 19776
.C
crude
.W
******CONOCO RAISES CRUDE OIL PRICES UP TO ONE DLR BARREL, WTI AT 17.50 DLRS.
Blah blah blah.

.I 19778
.C
acq
.W
VIACOM <VIA>, NAT'L AMUSEMENTS SEEK FAST MERGER.
    NEW YORK, March 9 - The chiefs of Viacom International Inc
and <National Amusements Inc> said they met and agreed to work
together to complete the previously announced merger of the two
companies "as expeditiously as possible."
    A spokeswoman for Viacom declined to say if the executives
had set a timetable for closing the deal.
    Viacom last week agreed to be acquired by National
Amusements for a combination of cash and stock with an
estimated value of 53 dlrs a share, or a total of about 3.4
billion dlrs.

.I 19780
.C
wheat;grain;corn;rice;
.W
ASCS BUYS PROCESSED PRODUCTS FOR DOMESTIC USE.
    KANSAS CITY, March 9 - The Agricultural Stabilization and
Conservation Service (ASCS) bought 25.7 mln pounds of wheat
flour at a cost of 2.8 mln dlrs for domestic shipment April
1-15 and April 16-30, an ASCS spokesman said.
    ASCS also bought 11.1 mln pounds of bakers flour for 1.1
mln dlrs, 1.9 mln pounds of pasta for 408,258 dlrs, 1.4 mln
pounds of processed cereal products for 304,043 dlrs, 4.8 mln
pounds of corn products for 474,944 dlrs, and 16.3 mln pounds
of milled rice for 2.0 mln dlrs.


.I 19781
.C
earn
.W
******GENERAL CINEMA CORP 1ST QTR OPER SHR 43 CTS VS 47 CTS.
Blah blah blah.

.I 19782
.C
interest
.W
BANK BOARD SAYS MORTGAGE RATES DOWN IN FEBRUARY.
    WASHINGTON, March 9 - The Federal Home Loan Bank Board said
interest rates on both fixed rate and adjustable rate home
mortgage loans were down substantially in early February.
    The bank board said the average effective commitment rate
for fixed mortgages with a maturity of at least 15 years for
new home purchases dropped to 9.54 pct in early February, a 30
basis point decline from early January.
    The commitment rate on adjustable rate mortgages declined
by 16 basis points in the same period bringing the average rate
to 8.5 pct, the bank board said.
    The average effective interest rate on all loans closed by
major lenders declined 27 basis points from early January to
9.26 pct in early February, the lowest rate since March 1978,
the bank board said.
    The average effective rate for fixed mortgages was was 9.51
pct, down 30 basis points from the early January level. The
average effective rate for adjustable rate mortgages declined
22 basis points to 8.61 pct, the bank board said.


.I 19785
.C
acq
.W
******NORANDA TO SPIN OFF FOREST INTERESTS INTO SEPARATE COMPANY.
Blah blah blah.

.I 19786
.C
crude
.W
API PRESIDENT SEES OPTIONS TO AVERT OIL CRISIS.
    NEW YORK, March 9 - American Petroleum Institute President
Charles DiBona said no options should be rejected to combat 
growing U.S. dependence on foreign oil.
    "No action should be ruled out--import fees or quotas,
floor prices, tax incentives or other alternatives--while a
national dialogue on the issue continues," DiBona said at a 
paper institute conference in New York today.
    DiBona said there is no unanimity within the industry on
how to stimulate energy production but there is consensus on
removing several government policies that hinder investments in
new prospects.
    DiBona said the windfall profit tax should be abolished
immediately and current proposals for increased environmental
regulations on acid rain and waste disposal should be not
adopted. He also suggested that the Arctic National Wildlife
Refuge in Alaska should be opened up for leasing to oil
companies, DiBona said.
    "This is a battle the industry cannot afford to lose if the
nation is to continue to benefit from Alaskan oil," DiBona
said. Since 1986 U.S. oil production has fallen while
consumption rose and that has raised dependence on imported
oil, particularly from OPEC, DiBona said.
   


.I 19787
.C
interest
.W
******U.S. SELLS 3-MO BILLS AT 5.63 PCT, STOP 5.64 PCT, 6-MO 5.59 PCT, STOP 5.60 PCT.
Blah blah blah.

.I 19789
.C
acq
.W
NATIONAL DISTILLERS <DR> CLOSES ALMADEN SALE.
    FARMINGTON Conn., March 9 - National Distillers and
Chemical Corp said it completed the sale of Almaden Vineyards
Inc to Heublein Inc for about 128 mln dlrs.
    Heublein, a former subsidiary of RJR Nabisco Inc <RJR>, was
recently acquired by <Grand Metropolitan PLC>.
    Almaden, based in San Jose, Calif., makes and sells table
wines, champagnes and brandies as well as some premium wines
under the Charles Lefranc Cellars label.
 


.I 19792
.C
acq
.W
******CEASARS WORLD SAYS IT IS STUDYING UNSOLICITED 28 DLR-PER-SHR OFFER BY MARTIN SOSNOFF.
Blah blah blah.

.I 19793
.C
interest
.W
U.S. BILL AUCTION RATES AVERAGE 5.63, 5.59 PCT.
    WASHINGTON, March 9 - The U.S. Treasury said its weekly
auction of three-month bills produced an average rate of 5.63
pct, with a 5.59 pct rate on six-month bills.
    These rates compared with averages of 5.47 pct for the
three- and 5.51 pct for the six-month bills sold last week.
    The bond-equivalent yield on three-month bills was 5.81
pct. Accepted bids ranges from 5.61 pct to 5.64 pct and 29 pct
of the bids at the high, or stopout rate, were taken. For six
months, the yield was 5.85 pct and the bids ranges from 5.56
pct to 5.60 pct with 30 pct of the bids accepted.
    The Treasury said it received 30.9 billion dlrs of bids for
the three-month bills, including 1.0 billion dlrs in
non-competitive bids from the public. It accepted 6.6 billion
dlrs of bids, including 2.2 billion dlrs from the Federal
Reserve and 9.1 mln dlrs from foreign and international
monetary authorities.
    Some 25.7 billion dlrs in bids for six-month bills were
received, including 785 mln dlrs in non-competitives. The
Treasury accepted 6.6 billion dlrs, including 1.9 billion dlrs
from the Fed and 942 mln dlrs from foreign and international
authorities.
    The average price for the three-month bills was 98.577 and
prices ranged from 98.574 to 98.582.  The average price for the
six-months bills was 97.174, and prices ranged from 97.169 to
97.189.
    The average yield on the three-month bills was the highest
since 5.66 pct on Feb 17. The average yield on the six-month
bills was the highest since 5.70 pct on Feb 17.


.I 19794
.C
acq
.W
CANADA MULLING SELLING PETRO-CANADA - MULRONEY.
    OTTAWA, March 9 - Prime Minister Brian Mulroney said the
government was considering selling Petro-Canada and the sale
would proceed if it were in the national interest to do so.
    Mulroney told the House of Commons assets of the huge oil
company would be examined before a decision was made, just as
other state-run companies were studied before being sold under
Ottawa's privatization program.
    "The government is going to examine assets of this nature
to ascertain if they continue to play an appropriate role in
public policy and we will make a determination as we have in
other cases," Mulroney told the daily question period.         
    Asked by opposition members to clairify Finance Minister
Michael Wilson's statement on Friday that Petro-Canada no
longer has any pubilic policy role, Mulroney said his
government has long promised to sell off companies that could
be better run by the private sector.
    Outside the House, Energy Minister Marcel Masse said
Petro-Canada would be worth between three and four billion dlrs
and, because of the size, could be difficult to sell.
    He also said he would prefer to see Canadians participating
in any privatization, but would not give any details on timing
of a sale.          


.I 19799
.C
acq
.W
NEWS CORP <NWS> COMPLETES PURCHASE OF NEWSPAPER.
    NEW YORK, March 9 - The News Corp said the South China
Morning Post Ltd of Hong Kong become a wholly-owned subsidiary
March 7 as previously announced.


.I 19800
.C
acq
.W
RICHMOND HILL<RICH>, RIVERHEAD END MERGER TALKS.
    FLORAL PARK, N.Y., March 9 - Richmond Hill Savings Bank and
<Riverhead Savings Bank FSB> said they terminated their
previously announced merger negotiations.
    The banks gave no reason for ending the talks, which began
on January 14.


.I 19802
.C
earn
.W
GENERAL CINEMA <GCN> POOR SEASON LOWERS NET.
    CHESNUT HILL, Mass., March 9 - General Cinema Corp said
lower attendence at its theatres against last year's record
Christmas season lowered its first fiscal quarter operating
earnings nine pct to 15.9 mln dlrs.
    "While we are not off to as good a start in fiscal 1987 as
we would like, business has picked up in the last few weeks,"
chairman Richard Smith said.
    He said that the company expected net pricing to be higher
and unit volume to improve in the remaining quarters of the
fiscal year.
    The company added that operating earnings in its theatre
unit will be higher in fiscal 1987 if the important summer
season film releases perform well.
    In addition, its other key business, General Cinema
Beverages, is expected to achieve record operating results for
the full year, Smith said.
    The company's superstar video business which rents video
cassettes in supermarkets continues to operate at an expected
loss, the company added.
    General Cinema said the financing costs associated with its
purchase of 3.5 mln Carter Hawley Hale Stores Inc <CHH> shares
for 177.9 mln dlrs, and its 89.7 mln sterling investment in
<Cadbury Schweppes PLC>, lowered first quarter net.
    But it said the loss was offset by a 2.5 mln dlr gain on
the sale of common shares of Sea-Land Corp, a unit of CSX Corp
<CSX>.


.I 19803
.C
acq
.W
CEASARS WORLD <CAW> STUDYING SOSNOFF OFFER.
    LOS ANGELES, March 9 - Ceasars Wold Inc said its board is
studying the unsolicited and conditional tender offer for all
its common shares at 28 dlrs per share from Martin T. Sosnoff.
    A company spokesman said the board expects to make a
recommendation "shortly", but could not specify a time period.
    Ceasars World Chairman Henry Gluck in a statement urged
shareholders not to take any action with respect to the offer
prior to the board's recommendation.
    Sosnoff made the offer directly to shareholders in a
newspaper advertisement through a company he formed, called MTS
Acquisition Corp. It expires April 3.


.I 19804
.C
earn
.W
AMERICUS TRUST <BYU> <BYP> INITIAL QTRLY DIV.
    NEW YORK, March 9 - Americus Trust For Bristol Myers shares
announced an initial dividend of 68.75 cts payable May 12 for
shareholders of record April 3.


.I 19806
.C
acq
.W
UNITED SECURITY <UNSE> TO BUY ROBERT BROWN UNIT.
    SAN FRANCISCO, March 9 - United Security Financial Corp of
Illinois said it has signed a letter of intent to buy Robert
Co. Brown and Co Inc's <RCBI> MAGIC Insurance Group unit.
    Robert C. Brown and Co would receive newly issued United
Security stock. United Security said it is anticipated that
such stock would represent a substantial majority of the shares
outstanding after the merger.
    United Security's principal subsidiary is United Security
Life Insurance Co of Illinois. The MAGIC Group owns Pilgrim
Life Insurance Co of America and Middle Atlantic Life Insurance
Co.


.I 19808
.C
ship;grain;
.W
GRAIN SHIPS LOADING AT PORTLAND.
    PORTLAND, March 9 - There were three grain ships loading
and two ships were waiting to load at Portland, according to
the Portland Merchants Exchange.


.I 19809
.C
acq
.W
WARRINGTON SELLS SHOE DIVISIONS.
    MONTREAL, March 9 - (Warrington Inc) said it sold its shoe
divisions to Montreal-based (Taurus Footwear Inc) for
undisclosed terms.
    The divisions manufacture and distribute Greb, Hush
Puppies, Kodiak, and Santana brand shoes and had revenues of
about 69 mln dlrs last year, Warrington said. It said the sale
of the shoe divisions and the previous sale of its ski boot
businesses will result in an unspecified net gain.
    Warrington said it plans to concentrate on its Canstar
Sports Group Inc skate and athletic footwear division, the
largest ice skate manufacturer and distributor in the Western
world.
    Warrington said it decided to rationalize the balance of
its ski businesses, which is expected to result in a divestment
loss which could outweigh the net gains on the sales of its
shoe and ski boot divisions.
    Taurus said the acquisition is expected to increase its
annual sales to about 100 mln dlrs and make it Canada's largest
footwear manufacturer.


.I 19811
.C
crude
.W
DUPONT <DD> UNIT RAISES CRUDE OIL PRICES.
    NEW YORK, March 9 - Conoco Inc, a subsidiary of DuPont
Corp, said it was increasing its contract prices for crude oil
between 10 cts and one dlr a barrel, effective today.
    Conoco said the increase brings its price for the U.S.
benchmark crude West Texas Intermediate to 17.50 dlrs a barrel,
up one dlr.
    South Louisiana Sweet, also up one dlr, is now 17.85 dlrs.
West Texas Sour was up 10 cts to 16.60 dlrs a barrel.
    Conoco was the last company to raise prices following a
series of increases initiated last week by Sun Co <SUN>, which
reversed the posted price cuts made at the end of February.


.I 19812
.C
grain
.W
CBT DISCUSSES MAJOR CHANGES FOR RENOVATION.
    By Brian Killen, Reuters
    CHICAGO, March 9 - Chicago Board of Trade (CBT)
agricultural and financial futures markets could be in for a
period of major upheaval later this year if the exchange goes
ahead with planned renovation.
    A CBT spokesman told Reuters the exchange was looking at a
number of options to identify the most cost effective and
efficient way to proceed, including one which would involve
moving the entire grains floor out of the building and into the
nearby MidAmerica Commodity Exchange.
    "One of (CBT Chairman) Karsten Mahlmann's agenda items has
been to proceed with renovation in the financial futures room,"
the spokesman said.
    Another CBT official, executive vice president George
Sladoje, said the issue would be discussed this Friday at a
special meeting on the exchange floor.
    A number of presentations have been made with regard to
renovating the financial futures room, Sladoje said. "We've
looked at five or six different alternatives, involving such
things as flip-flopping the trading rooms," he added.
    It is conceivable that under a couple of these plans, we
might use the MidAmerica Exchange temporarily for some CBT
markets, Sladoje said.
    "If we move out of one floor entirely, then the
construction period will be about a year," he said, adding that
the issue was likely to go to a membership vote first and then
be on the drawing board for eight months to a year.
    The CBT spokesman stressed that discussions were very
preliminary at this stage and nothing was likely to begin until
this summer at the earliest.
    In order to renovate the crowded financial futures pits,
exchange officials have discussed providing them a temporary
home next door in the present grains-dominated area.
    This could involve moving CBT markets in U.S. Treasury Bond
futures, Treasury Notes, Muni-bonds, and options on T-Bonds and
T-Notes through an adjoining corridor, while utilizing the
MidAmerica floor for such CBT futures contracts as corn, wheat,
soybeans, soybean products and agricultural options.
    Any such moves could meet with opposition among some CBT
members.
    One senior floor trader said the financial futures room
badly needs renovating.
    "There is talk the grains floor will shift to the MidAm and
the financials will move to the grains area," he said.
    The CBT spokesman said another option being discussed was
to renovate the financial floor in quadrants, one quarter at a
time. "The first step, after deciding the most effective way to
proceed, would be to get architectural and engineering
drawings," he said.
    He added that it was difficult at present to determine an
exact time frame for any possible moves. "This is a major
undertaking and a process that would spread out over next
year," he said.
    Floor traders at the MidAmerica Commodity Exchange, which
merged with the CBT about a year ago, said they were preparing
to vacate their floor at the end of this month.
    Space has recently been cleared for them at the CBT by
moving its Major Market Index pit into the area once reserved
for lightly-traded CBT gold and silver futures, which now share
their trading area.
    The MidAm specializes in mini-contracts in grains,
livestock, metals, financials and foreign currencies as well as
some options contracts.
    "Rumor has it that the CBT grains are coming over here
because the bonds are too crowded," one MidAm trader said.
    Another source at the MidAm said this change could take
place by July or August.


.I 19816
.C
acq
.W
GROUP SEEKS PRIME MEDICAL <PMSI> HOLDER LIST.
    WASHINGTON, March 9 - A group of investment firms led by
Far Hills, N.J., investor Natalie Koether said it is seeking
information about the shareholders of Prime Medical Services
Inc, over which it has said it is seeking control.
    In a filing with the Securities and Exchange Commission,
the group, which includes Shamrock Associates, included a March
6 letter to Prime which asks for a complete list of all
shareholders and their addresses.
    The group said it wants the information so it can contact
shareholders on issues, including election of an opposition
slate of directors to the board and other proxy contests.
    The Koether group's letter gives the company five days to
respond to its request. If there is no response from Prime
Medical, the group said it would consider the demand refused
and would take "other proper steps" to get the information.
    The group said it already holds 1,483,886 Prime Medical
shares, or 17.5 pct of the total. It said it has taken legal
action to try to force the company to set an annual meeting and
require all directors to stand for election.
    In a previous SEC filing, the group has said it has decided
to try to seek control of Prime Medical through a tender offer,
exchange offer, proxy contest or other ways.


.I 19817
.C
acq
.W
<GRAND METROPOLITAN PLC> UNIT TO SELL BUSINESS.
    MONTVALE, N.J., March 9 - Grand Metropolitan PLC said its
Grandmet USA Inc unit decided to sell its physical fitness and
exercise equipment business.
    The company said Morgan Stanely and Co Inc is advising it
on the sale of the business.


.I 19818
.C
acq
.W
CHRYSLER <C> AMC BUYOUT VALUED AT 1.55 BILLION.
    By Richard Walker, Reuters
    DETROIT, March 9 - Chrysler Corp's proposed acquisition of
American Motors Corp is valued at about 1.55 billion dlrs,
including the cost of acquisition and the 767 mln dlrs in
American Motor' debt that Chrysler will assume, analysts said.
    They said Chrysler's cost of acquisition was valued at  782
mln dlrs, paid in cash, notes and Chrysler shares.
    The analysts told Reuters that at a New York briefing
Chrysler treasurer Fred Zuckerman outlined his company's
agreement with Renault to assume AMC's debt as well as 332 mln
dlrs in unfunded pension liabilities, though the latter is not
included valuing the transaction.
    Analysts were generally positive on Chrysler's proposed
purchase of its much-smaller rival, but said they expected the
transaction would carry with it a short-term dilution in
Chrysler's earnings.
    A Chrysler financial source, speaking anonymously, told
Reuters that the proposed purchase price was smaller than it
would have been had a deal been struck last year because the
impact of the new U.S. tax law removes Chrysler's ability to
assume AMC's large reserve of tax-loss carryforwards
accumulated from its losses since 1980.
    "There were very serious discussions last fall but we
didn't pull it off," the source said in a reference to the
assassination in November of former Renault chairman Georges
Besse.
    "It's too bad because the tax benefits fell on the floor.
And Renault could have gotten a much better price if we'd done
it before the end of last year."
    In addition to AMC's debt and its pension liabilities, the
source said Chrysler would also assume any liability from
lawsuits over the safety of Jeeps, which he called "an overhang
to the company."
    Analysts quoted Chrysler officials as having told them that
the deal includes payment to Renault of 200 mln dlrs principal
in the form of a 10-year note at eight pct interest, 35 mln
dlrs cash for Renault's equity in AMC's finance subsidiary, 25
mln dlrs in cash for "transaction fees" in connection with the
acquisition and 522 mln dlrs worth of Chrysler stock to be paid
AMC shareholders.
    "The big number is the 767 mln dlrs in debt assumption,"
analyst Jack Kirnan of Kidder Peabody and Co told Reuters.
     Moody's Investors Service Inc said it may downgrade 12
billion dlrs of Chrysler Corp and unit debt due to the deal.
     But the Chrysler source said that in assuming AMC's
liabilities, his company will refinance at a lower rate any AMC
debt that is being carried at "non-market" rates.
    He said there were difficulties in negotiating with the
previous Renault management on the acquisition because they
were committed to the group's business plan of which AMC was an
integral part.
    "The new management didn't have that problem - AMC wasn't
their baby," he said.


.I 19821
.C
acq
.W
WASHINGTON NAT'L <WNT> BUYS UNITED PRESIDENTIAL.
    EVANSTON, Ill., March 9 - Washington National Corp's
Washington National Insurance Co said it bought the remaining
15 pct of United Presidential Corp's <UPCO> outstanding shares
at 19 dlrs a share cash.
    The acquisition of the shares is part of a plan of exchange
approved by United Presidential shareholders at a special
meeting March 6.
    The purchase of the remaining United Presidential stake
follows Washington National's buying 85 pct of United
Presidential in a 19 dlrs a share tender offer which terminated
December 12.


.I 19822
.C
acq
.W
CONAGRA <CAG> COMPLETES MERGER WITH TRIDENT.
    OMAHA, Neb., March 9 - Conagra Inc said it completed the
merger of its Sea-Alaska Products Co unit and <Trident Seafoods
Corp.>
    Conagra said the new company, in which it holds a 45 pct
stake, will be called Trident Seafoods Corp. Charles Bundrant,
president of Trident before the merger, was named president of
the new company, Conagra said.
    Conagra said it also completed the previously announced
acquisition of <Bristol Monarch Corp> and that Trident
completed the purchase of the remaining 50 pct stake of <San
Juan Seafoods Inc.>


.I 19823
.C
wheat;grain;corn;
.W
MARKET DISCOUNTS HIGHER SOVIET GRAIN IMPORTS.
    CHICAGO, MARCH 9 - Grain analysts said the increase of
three mln tonnes in 1986/87 Soviet grain imports is unlikely to
affect the market Tuesday.
    They said the market already has discounted higher Soviet
imports, partly on news last month that the Soviet Union bought
one mln tonnes of U.S. corn, and on rumors that the Reagan
administration is pushing for authority to sell the Soviets
U.S. wheat under the Export Enhancement Program.
    In its supply-demand report, the USDA raised its estimate
for 1986/87 Soviet grain imports to 26 mln tonnes from 23 mln.
    "That was business already done, for all practical
purposes," said Drexel Burnham analyst Dale Gustafson,
reflecting similar statements made by other analysts.


.I 19827
.C
earn
.W
<ATCO LTD> SEES GAIN FROM SALE.
    CALGARY, Alberta, March 9 - Atco Ltd said its Atco
Development unit agreed to sell the Canadian Utilities Center
in Edmonton, Alberta and the Canadian Western Center in
Calgary.
    The sales, together with the previously-announced sale of
Atco's Australian operations, will gross 114 mln dlrs and
result in an after-tax gain of 31 mln dlrs, which will be
reflected in Atco's fiscal year results.
    Its fiscal year ends March 31, the company said. In
addition, the sales will produce 47 mln dlrs cash after debt
reduction of 67 mln dlrs, Atco said.


.I 19828
.C
acq
.W
******LINDNER TELLS SEC HE HAS HAD TALKS WITH TAFT ON SEEKING CONTROL OF COMPANY.
Blah blah blah.

.I 19831
.C
acq
.W
BANCROFT <BCV> FILES SUIT AGAINST ZICO.
    NEW YORK, March 9 - Bancroft Convertible Fund Inc said it
filed a lawsuit in federal court in Newark, N.J., seeking to
block a hostile 30 dlr a share takeover offer by <Zico
Investment Holdings Inc.>
    Bancroft said the suit also names Michael B. Javett,
principal officer of Zico, and First Fidelity Bancorp's <FFB>
First Fidelity Bank unit, the depositary for Zico's offer.
    Bancroft said the suit also names <Georgeson and Co Inc>,
Zico's information agent, and <Luthie Intercontinentale Inc>, a
Panamanian corporation.
    Bancroft said its complaint alleges that Zico's tender
offer materials include false and misleading information and
that the offer violates the Investment Company Act of 1940.
    The company said its stockholders approved proposals that
will insure that it remains independent.



.I 19833
.C
money-fx;gnp;cpi;
.W
WORLD BANK REPORT CRITICISES PERU ECONOMIC PLAN.
    By Paul Iredale, Reuters
    LIMA, March 9 - A confidential World Bank report on the
Peruvian economy has said the government's strategy does not
offer good prospects for medium and long-term growth and is
likely to lead to an early renewal of inflationary pressure.
    The report, published today by the economic monthly, The
Peru Report, said the success of president Alan Garcia's
government in stimulating output last year to achieve a growth
in gross domestic product of over eight pct "represents gains in
the short term at the expense of the long."
    Government officials had no immediate comment on the
report, which advised a reduction in the overall size of the
public investment program and greater emphasis on the
preservation of Peru's export potential.
    The report said that although the government had succeeded
in cutting inflation from 250 pct a year in the first half of
1985 to under 70 pct, its stabilisation and reactivation
program was encountering rising difficulties.
    "An early renewal of inflationary pressures, linked to
monetary expansion, exchange rate devaluation and an easing of
price controls, appears not improbable," it added.
    The world bank report said the government's policies had
reduced inflation and short-term increases in consumption at
the apparent cost of price distortions, overvaluation of the
currency, balance of payments disequilibrium, reserve losses,
and sharply diminished creditworthiness.
    It said unless the government took action quickly to fix a
competitive exchange rate and control the public sector
deficit, "the higher the probability will be that the government
will eventually have to resort to drastic curtailment of
domestic demand and either sharp devaluation or still further
controls on imports in order to stem inflation and support the
balance of payments."
    It said the bank would place more emphasis on the
preservation of peru's export potential, external links and
overall economic efficiency.
    The government's incentive policies towards the mining and
petroleum sectors, among its main traditional exports,
suggested that it did not accord high priority to their
economic viability, it added.


.I 19835
.C
acq
.W
LINDNER SAYS HE DISCUSSED CONTROL OF TAFT <TFB>.
    WASHINGTON, March 9 - Financier Carl Lindner, who holds a
16.2 pct stake in Taft Broadcasting Co, told the Securities and
Exchange Commission he has discussed with the company the
possibility of seeking control of it.
    Lindner, the Cincinnati, Ohio, investor who controls
American Financial Corp, said his talks with some of Taft's
managers and directors have been aimed at "achieving an
increased ownership position" in the company.
    Lindner said his increase in ownership would be made either
by making an offer to acquire control of Taft or taking part in
a group to acquire the company.
    Lindner, who holds his Taft stake through American
Financial and its subsidiaries, said he is also considering
buying more Taft stock on the open market or in private deals.
    He did not say whether the talks with Taft officials led to
any agreements or understandings.
    But Lindner said he intends to review his investment in
Taft and may be involved in further talks or take other steps
regarding the future control and direction of Taft.
    Lindner's investor group recently raised its Taft stake to
1,489,298 shares, or 16.2 pct from 1,439,498 shares, or 15.6
pct, after buying 49,800 shares for a total of 5.8 mln dlrs.
    Although he recently received clearance from the Federal
Trade Commission to raise his stake in the company to 24.9 pct,
Lindner in previous SEC filings has always stressed that his
interest in Taft was for investment only and not was not
seeking to control the company.
    An investor group headed by members of the wealthy Bass
family of Fort Worth, Texas, also holds about 24.9 pct of
Taft's common stock.


.I 19837
.C
acq
.W
INVESTORS SET DEADLINE FOR JAPAN FUND <JPN>.
    NEW YORK, March 9 - An investor group that includes T.
Boone Pickens III said it set a deadline of 1600 EST on March
11 for its offer to acquire Japan Fund Inc.
    The group, which also includes <Sterling Grace Capital
Management Inc LP> and <Anglo American Security Fund LP>, said
it was willing to deposit in escrow 100,000 Japan Fund shares,
worth about two mln dlrs, to insure its ability to obtain
financing if Japan Fund approves its offer.
    The group said Japan Fund has not responded to its offer,
worth about 525 mln dlrs at current market prices.


.I 19838
.C
acq
.W
INVESTOR FIRMS HAVE 25.5 PCT OF SYMBION <SYMB>.
    WASHINGTON, March 9 - A group of affiliated firms led by
Warburg, Pincus Capital Co L.P., a New York venture capital and
investment partnership, said it has acquired 1,920,527 shares
of Symbion Inc, or 25.5 pct of the total outstanding.
    In a filing with the Securities and Exchange Commission,
the Warburg Pincus group said it bought the stake for
investment purposes.
    Although the group said it is considering buying more
shares of Symbion, it said it has no plans to seek control of
the company.


.I 19839
.C
acq
.W
OFFSHORE INVESTOR HAS 5.9 PCT OF HAUSERMAN<HASR>.
    WASHINGTON, March 9 - Kindness N.V., a Bahamas-based firm
owned by U.K. investor and Bahamas resident John Templeton,
said it has acquired 137,900 shares of Hausereman Inc, or 5.9
pct of the total outstanding common stock.
    In a filing with the Securities and Exchange Commission,
Templeton said he bought the shares for investment purposes
only and has no intention of seeking control of the company.


.I 19840
.C
acq
.W
INVESTMENT FIRMS UP STAKE IN MCGILL MFTG <MGLL>.
    WASHINGTON, March 9 - A group of affiliated investment
firms led by Bermuda-based Fidelity International Ltd and
Boston-based FMR Corp, told the Securities and Exchange
Commission it raised its stake in McGill Manufacturing Co Inc.
    The group said it raised its stake to 88,580 shares, or 6.2
pct of the total outstanding common stock, after buying 14,135
McGill common shares between Jan 19 and March 2 at prices
ranging from 33.57 to 34.57 dlrs a share.


.I 19841
.C
dlr;money-fx;yen;
.W
******U.S. INTERVENED TO BUY 50 MLN DLRS AGAINST YEN ON JANUARY 28, FED SAYS.
Blah blah blah.

.I 19842
.C
earn
.W
CTS <CTS> INCREASES 1986 LOSS.
    ELKHART, Ind., March 9 - CTS Corp said it increased its
1986 loss from continuing operations to 26.6 mln dlrs from the
previously announced 23.8 mln dlrs loss.
    The 1986 figure was increased to include expenses involved
with its settlement of a dispute with Dynamics Corp of America
<DYA>.
    The settlement involved a takeover bid for CTS by Dynamics
Corp, which had offered to buy the shares of CTS that it did
not already own.
    CTS made a profit of 7.9 mln dlrs from continuing
operations in 1985.
    CTS said it charged an additional 2.8 mln dlrs in special
expenses to its 1986 operations as a result of the Dynamics
Corp settlement.
    The additional expenses include the obligation to reimburse
Dynamics Corp, subject to approval of CTS shareholders, a total
of 2.1 mln dlrs for Dynamics Corp's expenses and other costs
relating to CTS.


.I 19843
.C
dlr;money-fx;yen;
.W
U.S. INTERVENED TO AID DLR IN JANUARY, FED SAYS.
    NEW YORK, March 9 - U.S. authorities intervened in the
foreign exchange market to support the dollar on one occasion
during the period between the start of November 1986 and the
end of January, the Federal Reserve Bank of New York said in a
report.
    The Fed's quarterly review of foreign exchange operations
said that the U.S. bought 50 mln dlrs through the sale of yen
on January 28. This operation was coordinated with the Japanese
monetary authorities and was funded equally by the Fed and the
U.S. Treasury.
    The Fed's intervention was on the morning after president
Reagan's State of the Union message and was "in a manner
consistent with the joint statement" made by U.S. Treasury
secretary James Baker and Japanese finance minister Kiichi
Miyazawa after their January 21 consultations.
    At that meeting, the two reaffirmed their willingness to
cooperate on exchange rate issues.
    The Fed's report did not say at what level the intervention
occurred. But on January 28, the dollar closed at 151.50/60 yen
after dipping as low as 150.40 yen earlier in the session. It
had closed at 151.05/15 yen the previous day.
    The dollar had plumbed a post-World War II low of 149.98
yen on January 19 and reached a seven-year low of 1.7675 marks
on January 28. It ended that day at 1.7820/30 marks.
    The Fed noted that, after trading steadily throughout
November and the first half of December, the dollar moved
sharply lower until the end of January.
    It closed the three-month review period down more than 11
pct against the mark and most other Continental currencies and
seven pct lower against the yen and sterling. It had fallen
four pct against the Canadian dollar.
    During the final days of January, pressure on the dollar
subsided. Reports of the U.S.-Japanese intervention operation
and talk of an upcoming meeting of the major industrial
countries encouraged expectations for broader cooperation on
exchange rate and economic policy matters, the Fed said.
    Moreover, doubts had developed about the course of U.S.
interest rates. The dollar's swift fall had raised questions
about whether the Fed would let short-term rates ease.
    Thus the dollar firmed to close the period at 1.8320 marks
and 153.70 yen. According to the Fed's trade-weighted index, it
had declined nine pct since the beginning of the period.
    The dollar had risen as high as 2.08 marks and 165 yen in
early November.
    The Fed last intervened in the foreign exchange market on
November 7, 1985 when it bought a total of 102.2 mln dlrs worth
of marks and yen.
    The Fed's action followed the September 1985 Plaza
agreement between the five major industrial nations under which
they agreed to promote an orderly decline of the dollar.


.I 19844
.C
acq
.W
INVESTMENT FIRM RAISES CERTRON <CRTN> STAKE.
    WASHINGTON, March 9 - Louart Corp, a Los Angeles investment
firm, said it raised its stake in Certron Corp to 237,000
shares, or 7.8 pct of the total outstanding common stock, from
164,000 shares, or 5.4 pct.
    In a filing with the Securities and Exchange Commission,
Louart said it bought 73,000 Certron shares between Sept 9 and
March 6 at a total of 109,315 dlrs a share.
    It said its dealings in Certron were for investment only,
but said it might increase its stake. It said it has no plans
to seek control of the company.


.I 19847
.C
acq
.W
HOGAN SYSTEMS <HOGN> IN ACQUISITION.
    DALLAS, March 9 - Hogan Systems Inc said it acquired
<Systems 4 Inc> of Durango, Colo., for 1.7 mln dlrs.
    Hogan said Systems 4 provides integrated applications
software and processing services to about 30 community banks.
    Systems 4 has revenues of 1.5 mln dlrs a year, Hogan said.


.I 19851
.C
wheat;grain;corn;
.W
USSR SEEN LIKELY TO HONOR CORN COMMITMENT.
    WASHINGTON, March 9 - The Soviet Union will likely honor
its commitment with the United States to buy a minimum of four
mln tonnes of corn this year, an Agriculture Department
official said.
    "They have always honoured the agreement, and there's no
reason now to think they won't this year," he told Reuters.
    "They have an aggressive buying campaign from the European
Community, from Canada, from the U.S. They're active buyers
from all sources at this point," the official said in
explaining why the Department raised its Soviet grain imports
estimate today by three mln tonnes to 26 mln tonnes.
    This is a dramatic shift from just a few months ago when
analysts were saying the USSR might not buy any U.S. corn for
the first time in 15 years.
    A drawdown of corn supplies in China and Argentina, concern
over Soviet winter crops, and increasing competition for U.S.
corn were all cited as possible factors in creating Moscow's
recent interest.
    Lower corn production prospects in some major supplying
countries have stirred activity from big buyers such as Japan,
and the Soviets are also closely watching the situation, the
official said.
    "The Soviets will try to out-capitalize the capitalists"
and buy corn before prices get too high, the official said. "As
soon as they need corn, they'll buy it," he added.
    USDA has confirmed one mln tonnes of corn sold to the
Soviet Union, but both U.S. and Soviet analysts have said the
purchases stand at 1.5 mln tonnes.
    The USDA official would not speculate on when the Soviets
would enter the U.S. market again.
    "There has definitely been an evolving mind set -- from the
situation of slow grain buying a couple months ago to one of
frenetic buying now," the official said.
    However, the situation in wheat is "a different story," he
said. Greater world supplies of wheat, heavier Soviet purchase
commitments and less competitive U.S. wheat prices make Soviet
purchases of U.S. wheat less likely, he said.
    Speculation has continued for several days that the U.S.
is considering making an export bonus wheat subsidy offer to
the Soviets, but U.S. officials have provided no confirmation.



.I 19852
.C
crude
.W
PICKENS SEES CONTINUED SLUMP IN WORKING RIGS.
     DALLAS, March 9 - T. Boone Pickens, the Texas oilman and
financier, said he believes the heady days the oil service
industry had in the early 1980s, when over 4,500 oil rigs were
once reported operating, will not return in his lifetime.
     Pickens told Reuters he expects the rig count to drop to
below 600 before recovering. He added that oil prices will
eventually rise to 35 dlrs, then to 50 dlrs after 1990.
     Currently, some 700 oil rigs are operating in the U.S.,
down sharply after oil prices slipped from 30 dlrs in late 1985
to around 10 dlrs in 1986. Prices are now around 18 dlrs. The
highest number of working rigs was 4,500 in December 1981.
     "The rigs won't go back to work until the price of oil
gets above 30 dlrs," he said, adding that while he expects to
see 50 dlr a barrel oil, he does not expect to see 2,000 rigs
operating in his lifetime. Pickens is 58.
     Pickens, who is currently touring the country promoting
his autobiography "Boone," said he does not believe the U.S.
should impose an oil import fee in order to stimulate the
domestic oil industry.


.I 19855
.C
money-fx
.W
MIYAZAWA SAYS PARIS ACCORD HELPING STABILISE RATES.
    TOKYO, March 10 - Finance Minister Kiichi Miyazawa said the
Paris currency accord has contributed to the stability of
exchange rates.
    Miyazawa told a press conference the agreement reached last
month in Paris by six major industrial nations to cooperate in
bringing about currency stability has prevented speculative
concerns from being active in money centres.
    The decision in Paris is being understood by the market, he
said. The yen-dollar exchange rate has been moving in a narrow
range since finance ministers of Britain, Canada, France,
Japan, the U.S. And West Germany reached the accord.


.I 19857
.C
money-fx
.W
AUSTRALIAN RESERVE BANK IN BUYING INTERVENTION.
    SYDNEY, March 10 - The Reserve Bank said at 1230 local time
it was offering to buy short-dated government securities in the
short-term money market.
    The bank's action followed its purchase of short-dated
government stock and six-day repurchase agreements earlier in
the session.
    Money market traders said the move was aimed at easing cash
market interest rates which had risen on demand for funds to
meet PAYE tax and treasury note settlement commitments.


