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BRITISH COMPOUND FEED PRODUCTION DETAILED

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. REUTER 

KLOECKNER UND CO'S 1986 PROFIT FALLS ABOUT 20 PCT

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. REUTER 

MIXED ASIAN REACTION TO NEW RUBBER PACT

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. REUTER 

CIBA-GEIGY, PHILLIPS PETROLEUM IN JOINT VENTURE

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. REUTER 

KRUPP TO BUILD SOUTH KOREAN STEEL PLANT

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. REUTER 

SWIRE EXPECTS CONTINUED GROWTH THIS YEAR

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. REUTER 

UNCERTAINTY SURROUNDS EC SUGAR TENDER RESULT-TRADE

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. REUTER 

ABU DHABI TO REOPEN GULF OILFIELD HIT IN 1986 RAID

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. REUTER 

CHAD SAYS TROOPS KILLED 1,200 LIBYANS IN BATTLE

Chad's military high command said today troops killed 1,269 Libyan soldiers in routing a 5,000-strong force to capture Tripoli's major air base in northern Chad on Sunday. In its first published casualty list from the fierce battle for Ouadi Doum air base, the high command said 438 Libyans were taken prisoner, while 29 Chadian soldiers were killed and 58 wounded. It said the prisoners included the regional commander, Colonel Khalifa Abul-Gassim Hastar, while his deputy, Colonel Gassim Ali Abu-Nawar, was among the dead. The Chadian army also captured substantial amounts of weaponry, including 11 Czechoslovak-made L-39 bombers, three Soviet MI-24 fighter helicopters and a large number of tanks, as well as hundreds of other vehicles armed with guns or anti-aircraft missiles. Following Sunday's battle, French officers said the fall of Ouadi Doum deprived Libya of its only hard runway air base in Chad. Its main strongpoint, Faya Largeau some 230 km (150 miles) north of the so-called "red line" along the 16th parallel, was left increasingly exposed. The 16th parallel divides the central African country into government-held zones in the south and mainly Libyan-controlled areas in the north. Reuter 

RAINBOW LIFTS PROGRESSIVE STAKE TO 52 PCT

<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. REUTER 

BANK OF THAILAND PLANS ITS FIRST BOND ISSUE

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

FOREIGN BROKERS GET MORE ACCESS TO JAPANESE BONDS

The Finance Ministry has accepted a decision by the securities industry to expand the share of foreign brokers in the 10-year bond underwriting syndicate to 5.73 pct from 1.19 pct now, a ministry spokesman said. Earlier this month, the ministry approved a plan to expand the securities industry's share in the syndicate to 26.2 pct from 26 pct from April to allow six foreign securities firms to participate, he said. The banks' share in the syndicate will be cut to 73.8 pct from 74 pct from April. Each of the original 17 foreign brokers had a 0.07 pct share, but the securities industry said in a report accepted by the ministry that it decided to raise the share of some foreign firms due to their commitment to the Japanese market. Salomon Brothers Asia Ltd will have one pct, while S.G. Warburg and Co Ltd, Goldman, Sachs International Corp, Jardine Fleming (Securities) Ltd, First Boston Corp, Merrill Lynch Securities Co and Morgan Stanley and Co Inc will each have 0.5 pct. Vickers da Costa Ltd and Smith Barney, Harris Upham International Inc will each have 0.3 pct. Kleinwort, Benson Ltd, Kidder, Peabody and Co Ltd, Drexel Burnham Lambert Inc, Deutsche Bank AG and W.I. Carr, Sons and Co each get 0.1 pct. Bache Securities (Japan) Ltd, Hoare Govett (Far East) Ltd and J. Henry Schroeder Bank and Trust Co and the six new syndicate members -- E.F. Hutton International Inc, Shearson Lehman Brothers Asia Inc, Dresdner Bank AG, Swiss Bank Corp International Asia Inc, Sogen Security Corp and Swiss Union Philips and Drew Ltd -- will each have a 0.07 pct share in the securities industry. REUTER 

YEN MAY RISE TO 140 TO THE DLR, NIKKEIREN SAYS

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. REUTER 

JAPAN BUYS MODEST AMOUNT OF DOLLARS, DEALERS SAY

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. REUTER 

BRAZIL/BANK COMMITTEE AGREE ON CREDIT REQUEST

Brazil and its bank advisory committee agreed to transmit a request for an extension of short-term credit lines totaling 16 billion dlrs for 60 days until May 31, Brazilian Central Bank President Francisco Gros said. Speaking after talks with the committee here, Gros also said he did not expect to make interest payment to the banks at this moment. He added that "no one should expect any dramatic developments before March 31." Brazil last month suspended interest payments on its 68 billion dlrs debt to commercial banks and froze short-term trade and money market lines. Bankers said they would relay the Brazilian request for an extension but declined to say whether they were specifically endorsing it. Gros said the decision, which he called a "standstill" arrangement, will be communicated to Brazil's 700 bank creditors by telex tomorrow. Banks had been pressing Brazil to make at least a token interest payment, but Gros said the government was unable to comply for the moment. He stressed however that Brazil was willing to pay as soon as it could, but added that a payment of interest was not connected with the extension of the credit lines. "That would not be wise," he said. He said that the extension of the short-term lines would not be carried out through "an official instrument" as there was not time to complete the legal requirements. Gros said Brazil was likely to meet again with the 14-bank advisory committee once Brazil had information to present on an economic plan. REUTER 

JAPAN DOES NOT INTEND TO CUT DISCOUNT RATE-SUMITA

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. REUTER 

U.K. MONEY MARKET FORECAST REVISED TO SHOW SURPLUS

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. REUTER 

BANK OF ENGLAND DOES NOT OPERATE IN MONEY MARKET

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. REUTER 

BANK OF JAPAN TO SELL 300 BILLION YEN IN BILLS

The Bank of Japan will sell 300 billion yen of government financing bills tomorrow under a 29-day repurchase accord maturing April 24 to soak up a projected money market surplus, market sources said. The surplus is estimated at 350 billion yen, due mainly to excess bank holdings of yen funds after heavy dollar purchases in the foreign exchange market yesterday, money traders said. The yield on the bills for sales to banks and securities houses from money houses will be 3.9495 pct against the 3.9375 pct discount rate for one-month commercial bills and the 4.58/42 pct yield on one-month certificates of deposit today. The operation will put the outstanding bill supply at about 1,900 billion yen, money traders said. REUTER 

EXCHANGE RATES ALMOST WITHIN G-6 LEVELS - SUMITA

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. REUTER 

AFGHAN BOMBING TOLL ALMOST 150

Afghan warplanes killed almost 150 people in bombing raids into Pakistani territory last Monday, Pakistani officials said. The death toll rose from a previously reported 85 as news emerged that a third village had been hit. About 45 people were killed in Lwarai Mandi in North Waziristan Tribal Agency, officials said. The death toll in Angur Adar in South Waziristan rose to 23 and the toll in Teri Mangal in Kurram Agency rose to 81. The Soviet-backed Afghan government has not commented on the reports. Reuter 

JAPAN ASKS TRADERS, EXPORTERS TO CUT DOLLAR SALES

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. REUTER 

SWIRE UNCOMMITTED ON PROPOSED NEW H.K. AIRPORT

Swire Pacific Ltd <SWPC.HKG> and its 50.25 pct unit Cathay Pacific Airways Ltd <CAPH.HKG> are still undecided whether they would participate in the proposed new airport for Hong Kong, chairman of both Michael Miles said. "We don't want to jump the fence prematurely. We want to know the government's position first," he told a press conference. "The new airport is still a long way away. But if it does go ahead we will be involved." He declined to elaborate but noted that no other company has more at stake in a Hong Kong airport than the Swire group, which controls <Hongkong Aircraft Engineering Co Ltd>. The idea for a second airport has been proposed for more than a decade but in 1982 the government shelved the plan for being too expensive. Early this year a consortium led by <Hopewell Holdings Co Ltd> presented the government with a 25 billion H.K. Dlr scheme of infrastructure development including an airport, a deep water port and highways to China. Hopewell said it will take a 20 pct stake in the project while Cheung Kong (Holdings) Ltd <CKGH.HKG> and Hutchison Whampoa Ltd <HWHH.HKG> will take a combined 20 pct. Earlier today Hopewell said <Jardine Matheson and Co Ltd> will take a five pct interest in the project. REUTER 

CENTRAL BANKS BUY DOLLARS FOR YEN IN LONDON

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. REUTER 

BRAZIL, BANKS FAIL TO MAKE BREAKTHROUGH IN DEBT TALKS

Brazil and its bank creditors failed to achieve any breakthrough in debt talks here last night after Brazil refused to say when it would resume interest payments. Central Bank governor Francisco Gros said after a meeting with a 14-bank advisory committee that Brazil cannot make any interest payments at this time, though it would do so "as soon as we can." The talks came as the annual meeting of the 44-nation Inter-American Development Bank (IADB), in which both Gros and the bankers had been taking part, moved toward a close here. Bankers leaving the meeting with Gros declined to discuss details of the talks, though some expressed satisfaction that Brazil had agreed to continue working with the committee. At the same time, Gros told reporters not to expect any dramatic developments before March 31, the date when some U.S. banks have said they will take a decision whether to put Brazil loans on a non-performing basis. Brazil suspended interest payments on its 68 billion dlr foreign debt to commercial banks on February 20 and shortly after announced it was freezing some 16 billion dlrs in short-term credit lines. Banks are not obliged to declare these loans non-performing before 90 days have elapsed, but the move to announce a possible decision in this respect was viewed as a means of exerting pressure on Brazil. The bank committee, headed by Citibank, had been pressing Brazil to make at least a token payment of interest but Gros said this was not possible right now. "We are not in a position to make a payment at this stage," Gros said. At the same time, the two sides reached a stopgap arrangement on the short-term trade and money-market credit lines, whereby the committee agreed to transmit a Brazilian request to extend the lines for 60 days until May 31. Banks have been indicating they will not renew credit lines in response to the Brazilian move. Reuter 

CHINA MUST REFORM IRRATIONAL PRICE SYSTEM, ZHAO

China's Premier Zhao Ziyang said the country must continue to reform its "irrational" price system although this will mean price rises and cause living standards for some people to fall. Zhao said China's price system is irrational due to "prolonged negligence of the law of value and due to the rigid and excessive state control." "The prices of farm products, energy, raw and semi-finished materials and other primary products have long been too low and many products have long been in short supply," he said. Price reforms are necessary to "establish a new vigorous socialist economic structure, to effectively promote production and commodity circulation and provide correct guidance to consumption," Zhao added. Reforms are bound to lead to a rise in the general price level but will only be implemented after careful studies so as to keep the increase within the capacity of society and the people "to withstand the strain." He said the general price level will rise in 1987 less than in 1986, with price increases of a very small number of products. REUTER 

SEVERE DROUGHT AFFECTS EAST, NORTHEAST THAILAND

A severe drought has affected 170,560 hectares of farmlands in six eastern and northeastern provinces, Interior Permanent Secretary Pisarn Mulasartsathorn said. He told reporters some 178,790 farming families in 45 districts in Chaiyaphum, Korat, Phrae, Chainat, Rayong and Trat provinces were seeking relief water from the government. The official did not say what crops have been damaged. Senior Interior Ministry officials said this week the worse than average drought this year has affected 14 provinces and may last until early May. REUTER 

OCEAN TRANSPORT AND TRADING PLC <OTTL.L> YEAR 1986

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. REUTER 

DART GROUP RAISES SUPERMARKETS GENERAL <SGL> BID

<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. Reuter 

OLSON INDUSTRIES INC <OLSN> 4TH QTR NET

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. Reuter 

OLSON <OLSN> TO HAVE LOSS FROM EGG UNIT SALE

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. Reuter 

JEFFERIES <JEFG> SETS SUPERMARKETS <SGL> MARKET

Jefferies Group Inc said it is making a market in the stock of Supermarkets General Corp. It said the current bid is 45 dlrs bid, 46 dlrs offered. Reuter 

E.D. And F. MAN TO BUY INTO HONG KONG FIRM

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. REUTER 

ORACLE CORP <ORCL> 3RD QTR FEB 28 NET

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. Reuter 

DISNEY <DIS> OPENING EXPERIMENTAL RETAIL OUTLET

Walt Disney Co said it will open its first non-tourist retail operation on March 28 at the Galleria shopping mall in Glendale, Calif. The company said the 2,400 square foot store will test consumer response to a retail outlet featuring all Disney character merchandise. Reuter 

ENTERRA CORP <EN> 4TH QTR LOSS

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. Reuter 

JOHNSTOWN/CONSOLIDATED REALTY TRUST <JCT> NET

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. Reuter 

DURIRON <DURI> COMPLETES VALTEK <VALT> PURCHASE

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

WASHINGTON FEDERAL SAVINGS <WFSL> QUARTERLY DIV

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) Reuter 

SINGER <SMF> GETS TEXAS AIR <TEX> CONTRACT

Singer Co said it has signed a 12-year contract with Texas Air Corp's Continental Airlines Inc unit to lease Continental an aircraft simulator for flight crew training. Singer said it will also market training on the simulator to other airlines. The company said initially it will provide a simulator for McDonnell Douglas Corp's MD-80 but will replace that simulator in 1988 with one for the MD-82. Reuter 

ROWLEY-SCHER <RSCH> TO HAVE LOSS FOR YEAR

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. Reuter 

DIXONS SAID IT GOT AND ACCEPTED ONLY 20 PCT OF CYCLOPS SHARES IN TENDER

LONDON ON RISE AS TRADING CENTRE IN U.S. DEBT

London's rise as a trading centre for U.S. Government debt has been spurred by the increasing use of interest rate swaps, which are now arranged for most new issues in the eurobond markets, traders and analysts said. Indeed, eurobond traders estimate that about 80 pct of all new debt issued here last year -- over 186 billion dlrs worth -- was part of either an interest rate or currency swap. "The U.S. Treasuries market here is swap-driven," said David Jones, vice president at Goldman Sachs and Co international and head of its U.S. Government bond trading desk. "It is commonplace to have trades of 100 mln dlrs or more in 10-years, seven years or five years, all related to an interest rate swap or hedging of a eurobond deal," Jones said at a recent conference on the U.S. Treasuries market. Just a year or so ago, he said, trades of that size going through brokers screens in London were unthinkable. Traders said that over the past two weeks, while trading in U.S. Treasuries has been almost frozen by indecision over the direction of interest rates, swap-related deals have provided the sole source of new business. Dealers said that last week, a 260 mln dlr trade involving two and 10-year Treasuries was transacted on brokers' screens. The trade, they said, was swap related. There are no firm figures on exactly how much U.S. Treasury debt is traded here and estimates vary widely. But Wrightson Economics, a U.S.-based research firm which drew its data from U.S. Treasury reports, estimated that gross transactions in U.S. Government securities in London rose to 341 billion dlrs in the first nine months of 1986 alone, against 188 billion in all of 1985. Wrightson estimates that about 20 pct of all U.S. Treasury trading is transacted outside the U.S., With Tokyo forming the third major centre. And while figures are not yet available for the last quarter, the anecdotal evidence suggests that the trend continued, traders say. Richard Lacy, chief executive at Exco International, put average daily Treasuries trading volume in London at about 15 billion dlrs. Exco recently purchased an 80 pct interest in RMJ Securities inc, one of the four major brokers in U.S. Government bonds which has offices in London, New York and Tokyo. But Dick Van Splinter, president of RMJ's competitor, Fundamental Brokers Inc's London operations, estimates average daily turnover is no more than four to five billion dlrs. But even at the low range of estimates, Treasuries trading volume is at least equal to that in the U.K.'s own government bonds, known as gilts. Jeremy Ford, vice president at Bankers Trust International Ltd, explained that U.S. Treasuries are used by intermediaries in swap transactions to lock in the "spread," the difference between the interest rate the borrower has to pay and the rate that the counterparty is obliged to pay. But even beyond swap-related activity, dealers said the nature of trading in London has changed. "The interesting thing our figures show is the transition in London from a marketing effort to a trading effort," said Louis Crandall, an economist at Wrightson who has been collecting the data. Crandall said that previously, firms' activities were limited to trying to sell U.S. Securities to European investors. Now, however, they appear increasingly willing act as principal in transactions rather than acting on behalf of their New York offices. Increasingly, traders say, firms maintain separate profit and loss sheets for their London operations so that trading decisions can be made independently from the U.S. Headquarters. Many of the major U.S. Firms, including Merrill Lynch and Co, Shearson Lehman Brothers Inc and Chemical Bank trade for their own accounts here. Also, traders point out, the number of U.S. Firms operating in London has increased sharply over the past year, as has the number of European and Asian banks which trade U.S. Government securities. Within the past few months, National Westminster Bank Plc's County Bank subsidiary and Swiss Bank Corp have applied to the Federal Reserve Bank of New York to become primary dealers in U.S. Government securities and their London offices have just recently received direct-dealing brokers screens. And Donaldson Lufkin Jenrette, already a primary dealer, is preparing to open a U.S. Treasuries trading desk in London. Dick Van Splinter, president of Fundamental Brokers Inc, the largest of the four major government bond brokers here, said he now has 45 firms using direct-dealing screens, up from 35 a year ago. REUTER 

MATSUSHITA TO ISSUE 200 BILLION YEN CONVERTIBLE

Matsushita Electric Industrial Co Ltd <MC.T> said it will issue a 200 billion yen unsecured convertible bond in the domestic capital market through public placement with Yamaichi Securities Co Ltd, Nomura Securities Co Ltd, Nikko Securities Co Ltd, Daiwa Securities Co Ltd and National Securities Co Ltd as underwriters. Coupon and conversion price for the par-priced bond maturing on September 30, 1996, will be set before payment on May 2. This issue equals in size a record one by Toyota Motor Corp last December. Matsushita's shares closed on the Tokyo Stock Exchange at 1,640 yen, down 50 from yesterday. REUTER 

DIXONS GETS ONLY 20 PCT OF CYCLOPS <CYL> IN BID

<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. Reuter 

OPPOSITION SAYS UK GOV'T GAVE ARMS TO CONTRAS

A leading member of Britain's opposition Labour Party said there was strong evidence Prime Minister Margaret Thatcher approved the sale of anti- aircraft missiles to Nicaraguan Contra rebels during talks last year with U.S. Officials involved in the Iran arms scandal. Labour foreign affairs spokesman George Foulkes told parliament the U.S. Tower Commission report on the sale of arms to Iran showed Colonel Oliver North had tried to obtain 20 Blowpipe missiles and 10 launchers through a South American country from a Belfast-based company, Short Brothers, which manufactures the missiles. Short Brothers is owned by the British Government. Junior Foreign Officer Minister Timothy Eggar dismissed the claims as "wild and fanciful allegations" with no foundation. Foulkes said North testified he was seeking the help of "a head of an allied government" in obtaining the Blowpipes and suggested the supply of missiles was discussed during two meetings which he said took place between North, the then head of the CIA William Casey and Thatcher in 1986. "We need to know what happened at those meetings between Mr Casey, Colonel North and the Prime Minister last year. What were they talking about if it were not the supply of Blowpipe missiles to the Contra terrorists?" Foulkes said. Reuter 

BRAZIL ANNOUNCES NEW PLANNING MINISTER

Brazil's new Planning Minister is Anibal Teixeira de Souza, the former head of a national welfare program, the government said. Teixeira replaces economist Joao Sayad, who last week became the latest victim of the turmoil in Brasilia over government economic policy. Sayad disagreed with Finance Minister Dilson Funaro on a range of policy issues and submitted his resignation. Reuter 

CITIBANK LAUNCHES CURRENCY WARRANTS

Citibank NA is issuing up to 50,000 currency warrants that give the holder a call right on U.S. Dollars from marks or yen, Citicorp Investment Bank Ltd said as sole manager. Each warrant, priced at 47.50 dlrs, gives the holder the right to purchase a nominal sum of 500 dlrs for either 182.50 marks or 149.50 yen between March 31, 1987 and March 31, 1989. The warrants will be listed in Luxembourg and pay date is March 31. Exercise, requiring one day's notice, must be for a minimum of 100 warrants through one currency only. REUTER 

KAUFMAN AND BROAD HOME CORP <KBH> 1ST QTR FEB 28

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 Reuter 

METRO CABLE <METO> TO SELL PARTNERSHIP

Metro Cable Corp said it has entered into a letter of intent for the sale of limited partnership Intermountain Cable Associates for about 3,250,000 dlrs. Metro and DMN Cable Investors are co-general partners for Intermountain. The name of the buyer was not disclosed. Metro said it has also transfered its northwest Iowa and eastern Colorado cablevision systems into a new wholly-owned subsidiary called MCC Cablevision. Metro said the new unit received 2,700,000 dlrs in financing from Bank of Boston Corp <BKB> which was used to retire Metro Cable's outstanding debt to <National Bank of Canada> and for working capital. Reuter 

RENOUF HAS 93.4 PCT OF BENEQUITY <BH> UNITS

<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. Reuter 

OIL ANALYST SEES PAPUA NEW GUINEA AS GOOD PROSPECT

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. REUTER 

CHINA TO TIGHTEN IMPORT CONTROL, CUT EXPORT COST

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. Zhao said China should work to provide a more favourable investment environment for foreign businessmen. Reuter 

USAIR GROUP INC <U> SETS QUARTERLY

Qtly div three cts vs three cts prior Pay April 30 Record April 16 Reuter 

CHINA MUST CUT DEMAND, CONTINUE REFORMS: ZHAO

China must cut excess demand and capital investment in the face of budget and foreign exchange deficits but will press ahead with wide-ranging economic reforms in 1987, Premier Zhao Ziyang told parliament. Zhao told the annual meeting of the National People's Congress that while China cooled its overheated economy, cut its trade deficit and raised national living standards in 1986, serious imbalances remain. Zhao said total social demand exceeds total supply, and demand for consumer goods, especially from state firms, is too high. "(They) squander public funds to a serious extent ... (and issue) excessive wage and bonus increases," he said. Failure to cut this excess will "result in reduced accumulation of funds...And serve to corrupt social morality," Zhao said. He said there was a contradiction between low per capita incomes and excessively high consumer demand. China needs to accumulate enormous funds for construction in its initial stage of socialist modernisation and consumption must match the available resources, he said. Zhao said there was a deficit in state finances in 1986 because of the sharp fall in world oil prices, the rising cost of foreign exchange earnings through exports, reduced income from customs duties and unreasonably heavy spending. Investment in energy, transport, telecommunications and raw and semi-finished materials industries is inadequate and investment in non-productive projects is too large, he said. Reuter 

YUGOSLAVIA SEEKS 600 MLN ECU LOAN FROM EC

Yugoslavia is seeking a loan of 600 mln ECUs from the European Community for transport system modernisation, Deputy Finance Minister Boris Skapin was quoted by the official Tanjug news agency. The community has offered Yugoslavia only 380 mln ECUs, he said. The loan is to help finance completion of Yugoslavia's north-south motorway, railway modernisation and export-oriented industrial projects. Skapin told reporters in Brussels yesterday the requested loan accounted for only 10 pct of total funds needed for these projects, Tanjug said. REUTER 

MCFARLAND <MCFE> TO BUY PETROMINERALS <PTRO>

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. Reuter 

TIMMINCO ACQUIRES UNIVERSAL ADHESIVES

<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. Reuter 

<PALOMA PETROLEUM LTD> YEAR NET

Shr 32 cts vs 29 cts Net 3,320,206 vs 2,990,695 Revs 13.5 mln vs 14.9 mln Reuter 

U.K. MONEY MARKET SURPLUS REVISED TO 250 MLN STG

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. REUTER 

<TECHNIMED CORP> GETS FDA APPROVAL FOR DRUG

Technimed Corp said it has received U.S. Food and Drug Administration approval to market its proprietary whole blood glucose test. The company said the test is the first home diagnostic glucose test to be approved by the FDA that uses simpler no-wipe technology. It is designed for use by diabetics in managing insulin therapy. Technimed said it has entered into talks with "several major pharmaceutical companies" on the marketing of the test. Reuter 

<AMERICAN RESOURCE CORP LTD> YEAR NET

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 Reuter 

WASTE MANAGEMENT ENDS TENDER OFFER FOR CHEMLAWN

WEST GERMAN JAN COFFEE IMPORTS DOWN ON YEAR-AGO

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. Reuter 

ONE VALLEY BANCORP <OVWV> RAISES QUARTERLY

Qtly div 26 cts vs 25 cts prior Pay April 15 Record March 31 NOTE: One Valley Bancorp of West Virginia Inc. Reuter 

NATIONAL DATA CORP <NDTA> 3RD QTR FEB 28 NET

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 Reuter 

NVHOMES <NVH> SETS TWO-FOR-ONE SPLIT

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. Reuter 

AMERICAN RESOURCE SETS RIGHTS OFFERING

<American Resource Corp Ltd> said the board approved a rights offering to class A non-voting shareholders to be made on a one-for-one basis and expected to raise between 80 mln and 100 mln dlrs. The company said a preliminary prospectus will be filed in Canada later this week and final terms for the rights offering will not be set until a final prospectus is filed. American Resource intends to use proceeds to expand its investment and merchant banking activities mainly in the United States, it said. Underwriters for the rights offering are Merrill Lynch Canada Inc, Loewen, Ondaatje, McCutcheon and Co Ltd, Burns Fry Ltd and Richardson Greenshields of Canada Ltd, American Resource said. The company also said Peter Gottsegen, formerly managing director of international corporate finance activities at Salomon Brothers Inc, was appointed to the board. American Resource said it will invest in a U.S. company to be owned by it and Gottsegen. Gottsegen will be chief executive of the new company, which will engage in investment and merchant banking activities in the United States. Reuter 

VANGUARD TECHNOLOGIES INTERNATIONAL INC <VTI>

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 Reuter 

THOMSON MCKINNON U.S. GOVERNMENT FUND DIVIDEND

Mthly div 7.3 cts vs 7.5 cts in prior month Payable April six Record Marcxh 30 Reuter 

THOMSON MCKINNON INCOME FUND DIVIDEND

Mthly div 8.5 cts vs 9.2 cts in prior month Payable April six Record Marcxh 30 Reuter 

(OAKRIDGE HOLDINGS INC) 2ND QTR DEC 31 NET

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. Reuter 

GENERAL COMPUTER CORP <GCCC> 3RD QTR FEB 28 NET

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 Reuter 

UK EQUITIES SEEN DUE FOR DOWNWARD CORRECTION

The chances of U.K. Stocks continuing recent rises as budget euphoria gives way to the uncertainties of a probable election are small, and market analysts say there will probably be a downwards correction in the next few weeks. The U.K. Market has managed a dizzy rise since the New Year, with the FT-SE index of 100 leading shares lifting 22.5 pct since January 2 to current levels around 2050. "Over the next month or two the odds are that the index will drop back to around 1,900," said John Goldschmidt, head of equities research at Chase Manhattan Securities. "A five to 10 pct drop is likely. There was a six pct fall before the 1983 election when the Conservatives were further ahead in the polls and the market was on a multiple of only 14 instead of 18 now," noted Nick Knight of brokers James Capel. "The old adage is "sell in May and go away'. That's likely to apply this year but will probably start in April," he added. But few analysts believed a correction would spell the end of the bull run that has now lasted for some six years. "As long as corporate profits and earnings keep on growing then the pressure for continued rises will be there. There seems little prospect of the growth stopping in 1987/1988," one said. Much of the recent enthusiasm has stemmed from the belief, already virtually discounted, that the ruling Conservatives will call an election in the next few months - probably June - and sweep home to a third term in office. Even if this does happen, however, pre-election nerves are likely to produce the traditional effect of damping down the market until the result is clear. "It's likely there will be one or two hiccups of confidence about the Tories winning an overall majority," Goldschmidt said. "It would be quite out of character for the market to continue to sail serenely upwards right through the election and beyond," added brokers Phillips and Drew in a recent report. The belief that the government itself is worried about the impact of the Alliance party disrupting the usual two-corner fight of Conservative and Labour with unpredictable results, is not likely to give reassurance, one analyst noted. Other factors also indicate that the market is vulnerable to a downwards correction. U.K. Stocks had ridden up partly on the back of record rises in New York and Japan and a pause in either suggests that London would inevitably follow suit. There would also be little new encouragement provided by general economic factors as much of the recent optimistic news, including this month's half point cut in base rates to 10 pct, is already built into prices. "The economy is looking okay, but it can't support 20 pct increases every three months indefinitely," one said. Also, market liquidity, a powerful driving force behind the recent rises, shows signs of drying up under the pressure of the government's privatisation campaign. The next few months will see cash calls for second tranche payments on British Gas Plc <BRGS.L> and British Airways Plc <BAB.L> as well as the proposed sale of <Rolls Royce Plc> and the as-yet untimetabled sale of the government's 31.7 pct stake in British Petroleum Co Plc <BP.L>. On top of that, there will be calls from the gilt market even though last week's budget limited the projected 1987/88 borrowing requirement to four billion stg. "We are looking for a squeeze on cash flow, and that's not including rights issues which have been low so far this year and may pick up in the second quarter," Knight said. Reuter 

ENSERCH ISSUES 100 MLN DLR CONVERTIBLE BOND

Enserch Inc is issuing 100 mln dlrs of convertible debt due October 4, 2002 carrying an indicated coupon of six to 6-3/8 pct and priced at par, Salomon Brothers International said as lead manager. Enserch's stock closed at 22-1/2 last night on the New York Stock Exchange. The conversion premium is indicated to be 20 to 23 pct. The securities are non-callable for three years. There is a 1-1/2 pct selling concession and two pct combined management and underwriting fee. REUTER 

BRIERLEY OFFER FOR PROGRESSIVE STILL VALID

<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. Reuter 

AVATAR HOLDINGS INC <AVTR> YEAR NET

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. Reuter 

NORWAY OFFERS 11TH LICENCE ROUND OFFSHORE BLOCKS

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. REUTER 

PERCEPTION TECHNOLOGY <PCEP> TO TAKE CHARGE

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. Reuter 

INSPECTORATE ISSUES 200 MLN MARK EQUITY EUROBOND

A unit of Inspectorate International AG <INSZ.Z> is raising 200 mln marks through an equity warrant eurobond package with a two pct coupon priced at par, lead manager Schweizerische Bankverein (Deutschland) AG said. The five-year bond, for Inspectorate International Finance NV, gives investors options on two separate warrant series "A" and "B" exercisable into participation certificates in parent and guarantor Inspectorate International AG. The first "A" series carries warrants for four participation certificates. Upon exercising the "A" warrants, investors also get two warrants for the "B" series. The "A" exercise period runs from May 7, 1987, to August 6, 1987. The exercise price is 543 Swiss francs. Of the two "B" warrants, one entitles investors to purchase one participation certificate in Inspectorate International AG and the other provides seven warrants. Investors may pay for "B" participation certificates by redeeming the bond issued today. In this case, the bond, issued in denominations of 5,000 marks, will be valued at a fixed price of 4,200 Swiss francs, or 119.05 francs per 100 marks. Participation certificates acquired with "B" warrants will be priced at 597 francs, equalling the price of the first tranche, plus a 10 pct premium. The exercise period for the "B" series is from August 8, 1987 to May 5, 1991. Fees for the bond total 2-1/4 pct, with 1-1/2 points for selling, and 1-3/4 for management and underwriting combined. Investors will pay for the bond on April 8, and the bond pays annual interest on the same day. It matures on April 8, 1992. The bond and warrants will be listed in Frankfurt. If all participation share warrants are exercised, the company will obtain some 300 mln marks in new equity. The construction allows Inspectorate to borrow at lower cost than a comparable convertible bond and will give the Inspectorate equity through issues of participation certificates in West Germany, a Swiss Bank Corp spokesman said. Inspectorate requires funding to finance its purchase of a 51 pct stake in Harpener AG, a diversified West German group, and other recent acquisitions. REUTER 

Bundesbank buys dollars for yen - Frankfurt dealers

REUTERS TO BUY I P SHARP OF CANADA

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. REUTER 

HORIZON BANK <HRZB> SETS STOCK SPLIT

Horizon Bank said its board declared a three-for-two stock split, payable April 21 to holders of record April Seven. Reuter 

WASTE <WMX> ENDS OFFER FOR CHEMLAWN <CHEM>

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. Reuter 

CORE-MARK INTERNATIONAL NAMES ACTING CHAIRMAN

Core-Mark International Inc said vice-chairman Edward Stanton will become acting chairman until the company's annual meeting following the previously announced resignation of David Gillespie as chairman and chief executive. Board member Anthony Regensburg will will become acting chief executive and Daniel Gillespie will continue as president and chief operating officer. Reuter 

<ACKERLY COMMUNICATIONS INC> YEAR LOSS

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 Reuter 

UNITED MEDICAL <UM> TO SELL UNIT

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. Reuter 

REXNORD <REX> TO CUT STAFF TO 50 FROM 112

Rexnord Inc said it will reduce to 50 from 112 its corporate staff at its headquarters here by the end of May, 1987. The staff reductions are part of the company's announced restructuring program and planned acquisition by Banner Industries Inc <BNR>. Affected Rexnord employees will receive severance pay based on length of service, job placement counseling, it said. Banner completed a tender offer for Rexnord common shares in late February. The companies are expected to combine within about two months, Rexnord said. Reuter 

CCC ACCEPTS BONUS BID ON CATTLE FOR EGYPT - USDA

The Commodity Credit Corporation has accepted a bid for an export bonus to cover the sale of 760 head of dairy cattle to Egypt, the U.S. Agriculture Department said. The delivery period for the cattle is April, 1987-June, 1988, it said. The bonus of 1,870.00 dlrs per head was made to Esmah Nevada Inc and will be paid in the form of commodities from the CCC inventory. An additional 7,199 head of dairy cattle are still available to Egypt under the Export Enhancement Program initiative announced September 12, 1986, the department said. Reuter 

INTEL <INTC> UNIT SELLS NOTES AT 8.18 PCT

Intel Overseas Corp, a unit of Intel Corp, is raising 110 mln dlrs through an offering of notes due 1997 yielding 8.18 pct, said lead manager Shearson Lehman Brothers Inc. The notes have an 8-1/8 pct and were priced at 99.63 to yield 93 basis points more than comparable Treasury securities. Non-callable for seven years, the issue is rated A-2 by Moody's Investors Service Inc and A by Standard and Poor's Corp. Salomon Brothers and L.F. Rothschild co-managed the deal. Reuter 

SPAIN'S SOCIALIST TRADE UNION PUSHES FOR WAGE HIKE

Spain's General Union of Workers (UGT), the trade union arm of the Socialist party, will keep pressing for salary rises of seven pct despite government recommendations for a five pct ceiling, a UGT spokesman said. Trade union sources said coal mines in Asturias remained closed by protests against planned job cuts. A 24-hour stoppage at the state railways RENFE, coinciding with strikes at two airlines next Friday, was virtually certain to be confirmed. They said construction workers would start a five-day strike next week. Prime Minister Felipe Gonzalez last night sought support for his call to limit wage rises in an effort to cut inflation to five pct from 8.3 pct last year. He told a press conference the Socialist government could not meet all demands and would not yield to demagogy. Antonio Hernandez Mancha, leader of the main opposition right-wing Popular Alliance (AP) party which tabled a motion of no confidence against the government, said Gonzalez had run out of imagination. But political sources said the government, holding an absolute majority in parliament, is sure to survive the no confidence debate opening tomorrow. REUTER 

THATCHER DEFENDS UK OIL POLICY IN SAUDI INTERVIEW

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." REUTER 

MARCH PRICES FELL IN GERMAN STATE ON YEAR-AGO

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. REUTER 

BUNDESBANK BUYS DOLLARS IN FRANKFURT - DEALERS

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. REUTER 

CROSSLAND SAVINGS <CRLD>ACQUIRES WESTERN SAVINGS

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. Reuter 

GENERAL ELECTRIC <GE> SELLS RIGHTS TO TECHNIQUE

General Electric Co said <BioReactor Technology Inc> obtained its rights to an experimental technique for analyzing blood samples to detect disease antibodies. General Electric said BioReactor will attempt to develop test market kits from the advances made by General Electric. General Electric said it granted the rights to BioReactor because the innovation, first announced in 1972, did not fit into the company's long-range product plans. In exchange for the patent, GE said it will receive an unspecified interest in the company. Reuter 

CPC <CPC> EXPECTS EUROPEAN SALE TO CUT DEBT

CPC International Inc officials said the sale of the company's European corn wet milling business will remove about 700 mln dlrs of debt and liabilities from CPC's balance sheet. They told analysts the deal, expected to close in September, and cash flow from other operations will reduced total debt by about one-third this year. At the end of 1986, CPC's debt totaled about 1.5 billion dlrs. The officials also said the company has no current plans to sell its U.S. or North American corn wet milling businesses. CPC's 1987 capital spending is budgeted at about 250 mln dlrs, down from about 361 mln dlrs last year, the officials told analysts. They said the planned sale of the European corn wet milling business, which is subject to reaching a definitive agreement, will not result in much of change in this year's spending plans. CPC is continuing to reduce corporate overhead costs by streamlining operations in Latin America, its technical laboratory operations in the U.S., and by completing the start up of a new plant in Argo, Ill., they added. Reuter 

BANK OF ENGLAND DRAINS MONEY MARKET LIQUIDITY

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. REUTER 

H.K. OFFICIAL DEFENDS NON-PROSECUTION OF BOND

Hong Kong's Attorney General Michael Thomas said he decided not to prosecute Alan Bond, chairman of <Bond Corp International Ltd> (BCIL), for giving misleading information about the firm because the case was weak. He told the Legislative Council there had been widespread misunderstanding, speculation and unfair distortion of the reasons for the decision. "Even if there is evidence that tends to prove the necessary ingredients of an offence, a bare prima facie case is, generally speaking, not enough to warrant a prosecution," added Thomas. The Attorney General's office said last month it will not prosecute Bond for his statements that the net asset value per share of properties owned by BCIL should be 2.60 H.K. Dlrs instead of 1.10 dlrs stated in the firm's prospectus. The decision followed a public apology by Bond that his remarks were misleading about BCIL, owned 66.2 pct by the Australia based Bond Corp (Holdings) Ltd <BONA.S>. Thomas dismissed a suggestion that he had compromised not to prosecute Bond if an apology was published but added: "its publication ultimately was a factor I took into account when subsequently I decided not to prosecute." Reuter