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CANADA MINISTER SETS REVIEW OF ENERGY OPTIONS

Energy Minister Marcel Masse announced a series of conferences will be held across Canada to review the country's policy options in the energy sector. "It is planned as a comprehensive review of Canadian energy issues, an examination of the present energy situation, an attempt to identify and evaluate our options for the future," Masse said in a speech at a luncheon in Toronto that was made available here. The meetings, which will be chaired by Tom Kierans, President of McLeod, Young Weir Ltd, will begin in June in Calgary, Alberta and conclude in December in Montreal. The energy minister did not elaborate on what, if any, federal legislation would result from the process. A final report would be issued at the end of the conference sessions and Masse said he would be in a position to respond to the report at that time. In his speech, however, Masse said he would prefer to see the government's energy policies retain a market base, but added government intervention was sometimes necessary. "I believe most of us accept the importance of allowing the market to function with the greatest possible freedom and flexibility," he said. "However, because of intervention of all kinds, a market as perfect as we would like to have does not exist in this imperfect world," Masses said. Reuter 

DUPONT'S <DD> CONOCO SAYS NO INTEREST IN DOME

Conoco, a unit of DuPont Co, said it is not interested in buying Dome Petroleum Ltd <DMP>, the Canadian oil company which has said it is in discussions with two unidentified companies. "To my knowledge, there is no interest on our part," Conoco spokesman Sondra Fowler said. Houston-based Conoco has been mentioned in market speculation on the identity of the two companies. Yesterday, Dome also received a 4.3 billion Canadian dlr offer for all its assets from TransCanada PipeLines Ltd <TMP>. Reuter 

FIRST FAMILY GROUP <FFAM> SALES INCREASE

First Family Group Inc said sales for March increased 27 pct over a year ago the same month to 4.4 mln dlrs from 3.5 mln dlrs. The company also reported third quarter sales increased 35 pct to 14.5 mln dlrs from 10.6 mln dlrs. First Family Group also reported sales for the first nine months of fiscal 1987. It said sales were 54.5 mln dlrs, compared to 52.7 mln dlrs a year ago. Reuter 

BECHTEL INC SETS UTLITY DESIGN CONTRACT

Bechtel said it signed aa contract with the Lewis County Public Utility District and started preliminary design of the 100-mln-dlr Cowlitz Falls Hydroelectric Project in Washington. The 70-megawatt project will generate about 250 mln kilowatt hours annually, serving the 21,000 residents of Lewis. Bechtel said it will use anew power generation concept called hydrocombine, which may save 15 pct on the cost of the project. Reuter 

ISC SYSTEMS <ISCS.O> 3RD QTR MARCH 27 NET

Shr seven cts vs 24 cts Net 1,114,000 vs 3,676,000 Revs 43.6 mln vs 41.2 mln Nine mths Shr 25 cts vs 64 cts Net 3,952,000 vs 9,614,000 Revs 118.6 mln vs 119.9 mln Reuter 

SLATER <SSI.A.TO> PLANS U.S. MODERNIZATION

Slater Industries Inc said it planned a 15 mln dlr modernization of its Slater Steels Corp Fort Wayne specialty bar division in Indiana. It said the modernization would involve replacement of the existing bar mill with a high-speed, quick-change continuous mill. The new facility will lower labor and mill costs and enhance product quality and range, Slater said. Completion date of the new mill was undisclosed. Reuter 

ADAMS-RUSSELL <AAR> TO ACQUIRE CABLE SYSTEMS

Adams-Russell Co Inc said it agreed to acquire cable television systems serving about 7,000 customers in New York State from Sammons Communications Inc for undisclosed terms. Adams-Russell said the systems operate in Wellsville, Amity, Andover, Scio, Willing, Belmont, Milo, Jerusalem, Benton and Penn Yan, N.Y. Reuter 

INDEPENDENT BANK CORP <IBCP.O> 1ST QTR NET

Shr 27 cts vs shr 18 cts Net 477,000 vs 305,000 Reuter 

MEDI-RX <MDRX.O> NAMED IN ARBRITRATION REQUEST

<Forber and Platel Inc> said it filed a demand for arbitration against Medi-Rx America Inc that seeks damages of more than five mln dlrs. The company said that its demand alleges breach of contract, tortious interference with contractual relationships and fraud. The company said it signed a contract with Medi-Rx to sell mail order prescription services and prescribed medical products for Medi-Rx. The company said that Medi-Rx violated terms of the contract and failed to pay commissions as provided for under the agreement. Reuter 

GULF CANADA <GOC> ACQUIRES SUEZ OIL STAKE

Gulf Canada Corp said it acquired a 25 pct working interest in the Gulf of Suez oil concession for undisclosed terms. The company said its agreement with operator Conoco Hurghada Inc and Hispanoil covered the 168,374-acre East Hurghada offshore concession. It said a 15.6 mln U.S. dlr four-well program was planned for 1987. After the acquisition, which is subject to Egyptian government approval, working interests in the Hurghada block will be Conoco Hurghada at 45 pct, Hispanoil 30 pct and Gulf Canada the balance. Reuter 

CONVERGENT TECHNOLOGIES <CVGT.O> SEES QTR LOSS

Convergent Technologies Inc said it expects to report in the first quarter a loss more than twice the size of the 4.8-mln-dlr loss reported in the fourth quarter of 1986. Convergent reported a first quarter 1986 profit of 2,100,000 dlrs, or five cts per share. The company said results declined in the quarter both in its traditional OEM business and its business systems group. The anticipated loss reflects lower than expected operating margins, start-up costs for new product manufacturing and higher than planned expenses. Reuter 

HEILEMAN <GHB> ACQUIRING C. SCHMIDT TRADEMARKS

G. Heileman Brewing Co Inc said it agreed to acquire the trademarks of Philadelphia-based C. Schmidt which produces a line of malt beverage products, including Schmidt, Rheingold, Duquesne and Ortlieb. In 1986, Schmidt sold about 1.6 mln barrels. Under terms of the proposed agreement, Heileman said it will enter a trademark transfer agreement which provides for royalties to be paid to Schmidt over a specified period of time on beverage products produced under the C. Schmidt labels. Reuter 

TEXACO <TX> LESS WILLING TO SETTLE - ANALYSTS

Texaco Inc told securities analysts at a meeting today that any settlement offers to Pennzoil Co <PZL> would now be far less than what it offered before, according to analysts who attended the meeting. "The message was they were far less likely to settle following the bankruptcy filing," said Richard Pzena of Sanford C. Bernstein and Co, who attended the meeting. Texaco yesterday filed Chapter 11 bankrupcty to protect itself from the 10.3 billion dlr judgement awarded to Pennzoil for Texaco's illegal takeover of Getty Oil Co. Texaco spokesmen said they could not comment on the analysts meeting. The company's bankruptcy filing freed Texaco from posting a bond for the judgment pending appeal of the case in Texas Courts. Pennzoil said it would oppose the Chapter 11 filing. "They are ready and willing to talk settlement," said one analyst who attended the Texaco meeting but declined to be named. "But a settlement would be for less now," he added. The analysts, a number of whom said they were recommending Texaco, said the stock was so cheap that it might open up the company up to a takeover bid. Texaco declined 3-1/8 to close at 28-1/2 today. Pzena said company officials were asked at the meeting if it would agree to a takeover, but offered "no comment" in reply. He said the company said that takeover talks were not being held. "It would make a lot of sense for Royal Dutch/Shell <RD> or Exxon Corp <XON> to go out and do it," Pzena said. "But they wouldn't make a hostile offer." "This thing has opened them up to a possible acquisition," said Alan Edgar of Prudential Bache Capital Funding in Dallas. "There's a lot of volume (in their stock) and that tells me someone's messing around," he added. Texaco was the most actively traded issue on the New York Stock Exchange with just under 13 mln shares changing hands. "I wouldn't rule anything out right now," said John Olson, an analyst with Drexel Burnham Lambert Inc. Pennzoil's stock, also on the NYSE's most active list, fell 15-1/4 points to close at 77. Many analysts said the bankruptcy filing was unfavorable to Pennzoil. Reuter 

INTERCO <ISS> SHAREHOLDERS APPROVE MERGER

INTERCO Inc said its shareholders and shareholders of the Lane Co <LANE.O> approved the merger of the two companies. In the merger, Lane's stockholders will receive 1.5 shares of INTERCO common stock for each outstanding share of Lane common stock, INTERCO said. Reuter 

JOHN H. HARLAND CO <JH> 1ST QTR NET

Shr 30 cts vs 25 cts Net 10.5 mln vs 8,697,589 Revs 71.9 mln vs 64.9 mln Reuter 

PACIFICORP <PPW> REDEEMS PREFERRED STOCK

PacifiCorp said on May 15 it is redeeming 2.4 mln shares of its preferred stock. The company said it is fully redeeming its 2.29-dlr no par serial preferred and its 2.48-dlr no par serial preferred and partially redeeming its 9.15 pct serial preferred. The 993,383 shares of 2.29-dlr will be redeemed at 26.72 dlrs per share, plus accumulated dividend of 0.0565 dlrs. The 976,352 shares of 2.48-dlr preferred will be redeemed at 26.24 dlrs per share, plus dividend of 0.0612 dlrs. Pacificorp will redeem 87.5 pct of its 500,000 shares of 9.15 pct preferred at 105.78 dlrs, plus 0.2257 dlrs dividend. Reuter 

<TRAVELERS REALTY INCOME INVESTORS> 1ST QTR NET

Shr 32 cts vs 38 cts Qtrly div 35 cts vs 35 cts prior Net 731,055 vs 865,117 NOTE: dividend payable May 20 to shareholders of record April 24. Reuter 

DOTRONIX INC <DOTX.O> TO BUY <VIDEO MONITORS>

Dotronix Inc said it agreed in principle to buy Video Monitors Inc, a privately-held company. In payment for the acquisition, Dotronix will issue 312,500 unregistered shares of its common stock, notes worth 1.8 mln dlrs payable over three years, and about 70,000 dlrs in cash. Dotronix said Video Monitors' sales for the fiscal year ended April 30, 1986, were 7.6 mln dlrs. Dotronix had income of 659,663 dlrs on sales of 7.1 mln dlrs for the six months ended Dec. 31, 1986, as previously reported. Reuter 

DEVELCON ELECTRONICS LTD <DLCFF> 2ND QTR LOSS

Period ended Feb 28 Shr loss 34 cts vs loss 58 cts Net loss 1,252,000 vs 2,145,000 Revs 4,539,000 vs 3,504,000 SIX MTHS Shr loss 66 cts vs loss 86 cts Net loss 2,428,000 vs loss 3,163,000 Revs 9,033,000 vs 8,192,000 Reuter 

ADVANCED INSTITUTIONAL <AIMS.O> IN NEW FACILITY

Advanced Institutional Management Software Inc said it renegotiated its bank credit facility from a demand note to a 10-year term note with a 25-year payment schedule. Reuter 

GENETIC LABORATORIES <GENL.O> SETS UP UNIT

Genetic Laboratories Inc said it set up a wholly owned subsidiary that will encorporate its reconstructive plastic surgery products. Genetic Laboratories said one of the reasons for the move was to "facilitate the sale or merger" of the business "with other companies specializing in plastic surgery." Reuter 

DRESSER INDUSTRIES <DI> LOSES PATENT APPEAL

Dresser Industries Inc said the U.S. Court of Appeals ruled against it in its appeal of a 1985 judgment in favor of Hughes Tool Co <HT> concerning a patent infringement. The case alleged that Dresser infringed on a Hughes patent regarding a drill bit sealing device, the company said. However, Dresser said the Appellate Court set aside the royalty rate of 25 pct on selected bits as being arbitarary and returned the case to the district court level to ascertain a new rate. Reuter 

TEXACO FILING ADDS UNCERTAINTY IN OIL MARKET

U.S. oil traders said Texaco Inc's filing for protection under the Chapter 11 bankruptcy code is adding uncertainty to an already skittish oil market, but opinions are divided on the impact to the market. "The filing is holding up wet barrel trading today," said one trader. "Everyone is talking about it, assessing their company's situations in relation to Texaco," he added. Some traders said companies that deal with Texaco are concerned about whether they will receive payment or supplies under the bankruptcy filing. However, others were less worried. "The first paid will be the trading community and those connected with Texaco in the shipping industry," one New York trader said. "If Texaco doesn't get crude supplies it can't run its refineries, so its other assets would not be worth anything," he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoil's proposed purchase of Getty Oil Co. However, others were less worried. "The first paid will be the trading community and those connected with Texaco in the shipping industry," one New York trader said. "If Texaco doesn't get crude supplies it can't run its refineries, so its other assets would not be worth anything," he added. Texaco filed for protection under Chapter 11 of the U.S. bankruptcy code yesterday after failing to reach a settlement with Pennzoil on an 11 billion dlrs court award for illegally interferring with Pennzoil's proposed purchase of Getty Oil Co. "There is some reluctance to trade with Texaco but no great change," said another trader, adding that traders are tending toward prudence in their dealings with the company. Traders are assessing whether to require cash prepayment or letters of credit, or to continue to trade as usual with Texaco on an open line basis, he said. Another trader, however, described today's activity as business as usual, adding that traders feel more secure because no liens can be put on Texaco's assets while it is in bankruptcy. Traders said there was no apparent effect of the Texaco filing on crude futures trading although they said the exchange might lower Texaco's position limit and require higher margins for Texaco's trades. New York Mercantile Exchange President Rosemary McFadden declined to comment on Texaco's futures trading, saying that is is proprietary information. McFadden did say, however, that as a matter of procedure, it is possible the exchange can lower allowable position limits or increase margin requirements for companies that are in financial trouble. Reuter 

ERC INTERNATIONAL <ERC> TO OFFER DEBENTURES

ERC International said it will file in the first quarter for a public offering of 25 mln dlrs principal amount convertible subordinated debentures due 2012. It said it will file a registration statement with the Securities and Exchange Commission. Proceeds will be used to repay existing debt, with the balance to be used in its acquisition program and for additional working capital, the company said. Reuter 

VALLEY NATIONAL CORP <VNCP.O> 1ST QTR NET

Shr 1.18 dlrs vs 1.15 dlrs Net 19.7 mln vs 19.3 mln Assets 10.05 billion vs 9.62 billion Deposits 8.56 billion vs 8.04 billion Net loans 6.95 billion vs 6.71 billion Reuter 

OTTER TAIL POWER CO <OTTR.O> SETS DIVIDEND

Qtly dividend 73 cts vs 73 cts Pay June 10 Record May 15 Reuter 

MERRILL TO GET 30 MLN DLR FEE IN BORG <BOR> DEAL

Merrill Lynch and Co Inc <MER> subsidiary seeking to take over of Borg-Warner Corp said it could realize a 30 mln dlr fee for its efforts, whether or not the deal, which it values at 4.7 billion dlrs, succeeds. In a filing with the Securities and Exchange Commission, Merrill Lynch Capital Partners Inc said it would receive a 30 mln dlr fee from the surviving company for acting as dealer manager of the merger after the Borg-Warner deal is completed. But it said it could also receive a break-up fee of 30 mln dlrs if the deal fails for reasons, which include another party holding more than 40 pct of its stock or tendering for 50 pct. The 30 mln dlr fee is among the highest set down in any tender offer agreement, either in compensation for dealer manager services or for break-up of the deal. Merrill Lynch Capital Markets, backed by a group of investors it organized, has launched a 48.50 dlr a share tender offer for Borg-Warner for 90 pct of its stock. The company's board has approved the plan, which was intended to thwart an unsolicited offer from GAF Corp. Borg-Warner also agreed to redeem all outstanding Series A preferred shares and to pay off on all options at a 48.50 dlr a share exercise price before the merger is effective, it said. Merrill Lynch said its representatives discussed a possible leveraged buyout with Borg-Warner as early as last December. At that time, Merrill Lynch told the company it would consider a 43 dlr a share tender offer in cash and securities, if the Borg-Warner board approved, it said. On Feb 24, it said it was told the company had decided against a buyout. But talks were revived after GAF launched its 46 dlr a share proposal on March 31, Merrill Lynch said. Unlike its earlier proposal, Merrill Lynch said Borg-Warner management was asked not to take part in the new deal and it was conditioned upon payment of the fees. In addition to its fees, Merrill Lynch said it will also get up to 17 mln dlrs from Borg-Warner to cover its expenses in the tender offer. Merrill Lynch said it would continue operating Borg-Warner as a subsidiary with its current officers keeping their positions. But for flexibility purposes, Merrill Lynch said it is considering redistributing Borg-Warner's assets to a number of subsdiaries of an entity it created to carry out the merger. All in all Merrill Lynch estimated that there would be 130 mln dlrs in fees and expenses connected with the deal. Another 250 mln dlrs will be needed to repay certain debt of Borg-Warner, Merrill Lynch said. To finance the deal, Merrill Lynch said it expects to borrow 3.5 billion dlrs from a group of banks and sell 100 mln dlrs of common stock of the new company, sell 100 mln dlrs of non-voting preferred stock of the new company to Merrill Lynch and Co, sell up to 650 mln dlrs of subordinated notes to Merrill Lynch and Co and sell to the public 204 mln dlrs of subordinated discount debentures. GAF has raised its offer to 48 dlrs a share cash. Reuter 

SUPERMARKETS GENERAL <SGL> UNIONS WANT SECURITY

United Food and Commercial Workers International Union said its locals currently bargaining with Supermarkets General Corp were prepared to demand additional job security in light of the recent takeover attempt by the Dart Group Corp. The union said it represented more than 10,000 Pathmark workers. Reuter 

PARADYNE <PDN> IN PACT WITH UNIVAR <UVX> UNIT

Paradyne Corp said it signed a contract with Van Waters and Rogers Inc, a subsidiary of UNIVAR Corp, to supply a data communications network. The contract, valued at 1.5 mln dlrs, will include Paradyne modems, multiplexers, ANALYSIS network management system and NetCare services, Paradyne said. Reuter 

WHITE HOUSE SAYS SHULTZ TRIP MAY LEAD TO SUMMIT

President Reagan's chief of staff said a decision on a new U.S.-Soviet summit could emerge from Secretary of State George Shultz' Moscow talks with Soviet Foreign Minister Eduard Shevardnadze. Chief of Staff Howard Baker noted Reagan's invitation to Kremlin chief Mikhail Gorbachev to visit the United States, made at their first summit in Geneva in November, 1985, was still on the table. "I would not be surprised to see that subject discussed by the secretary of state and the Soviet Foreign Minister," Baker told reporters. "I would not be surprised to see some sort of decision result from those conversations." Reuter 

PENNZOIL <PZL> PLOTS STRATEGY TO FIGHT TEXACO

Pennzoil Co, frustrated by Texaco Inc's <TX> decision to seek bankruptcy protection from its 10.3 billion dlr court judgment, is preparing to launch a new assault that may include investigating assets Texaco transferred from its corporate parent to subsidiaries, legal experts said. Joe Jamail, a Houston lawyer for Pennzoil, said the company would file a challenge to Texaco's bankruptcy petition sometime this week accusing the oil giant of bad faith and ignoring its fiduciary responsibilities to shareholders. The action is almost certain to ignite a new round of debate between the two companies stemming from Texaco's 1984 acquisition of Getty Oil Co for 10.2 billion dlrs, a company Pennzoil believed it had an agreement to buy. "We're going to be doing a lot of things they may not like," Jamail said, referring to the bankruptcy court proceeding in New York. Some legal experts suggested that a mud-slinging battle in bankruptcy court between the two companies might also provoke Congressional interest in whether the bankruptcy code is too lenient because it permits a profitable firm to freeze debts. Texaco, which has assets totaling 34.9 billion dlrs, sought protection Sunday under Chapter 11 of the federal bankruptcy code rather than risk having a Texas appeals court order the company to post a security bond for the entire amount of the Pennzoil judgment. Gerald Treece, dean of the South Texas College of Law and an observer of the litigation during the past three years, said Pennzoil was unlikely to prove Texaco is not qualified to be in bankruptcy court simply because the giant oil company has a positive cash flow and assets that far exceed its liabilities. But Pennzoil may be successful in raising the issue of whether Texaco improperly transferred certain assets from the corporate parent into subsidiaries unaffected by the bankruptcy filing, Treece said. "Pennzoil's lawyers are going to be like dogs barking at the heels of Texaco wherever they go," Treece said, "I think people are going to be surprised at the level of intensity that Pennzoil will use in searching for hidden Texaco assets." Jamail said Pennzoil objected to Texaco's transfer of an oil refinery and chemical plant in Port Arthur, Texas from its corporate parent to a subsidiary on Dec. 9, 1985, one day before a state court judge entered the record jury award against Texaco. Jamail suggested that the refinery and chemical plant, valued at about 1.1 billion dlrs, were deliberately placed out of reach of the Texas jury judgment. But Richard Lieb, an attorney with Kronish, Lieb, Weiner and Hellman in New York, said Texaco could elect to place additional subsidiaries into bankruptcy if necessary. In the petition filed Sunday, only Texaco Inc, the corporate parent, and two financial subsidiaries were included in the bankruptcy case. The businesses account for only about four pct of Texaco's total revenues. Mickey Sheinfeld, a Houston lawyer who represented Continental Airlines in an historic bankruptcy case that set aside labor union agreements, said the track record of the bitter Texaco-Pennzoil struggle indicates that the two companies could spend two or three years fighting in bankruptcy court. "The courts have been very interested in the issue of good-faith bankruptcy filings. This may prove to be a landmark case in developing that issue," Sheinfeld said. Texaco, he said, was following the example set by Manville Corp, A.H. Robins Co and other firms that fell into bankruptcy expressly to avoid paying large legal judgments. Bankruptcy laws were relaxed in 1978 so that a company no longer needed to prove it was insolvent in order to seek protection from creditors. Texaco lawyers bristle at the suggestion that the company entered bankruptcy to spite Pennzoil. Gibson Gayle, a Texaco lawyer, said the company had every right to seek protection from creditors, and that Texaco had embarked on an internal restructuring plan in December 1984 that required transferring various assets among subsidiaries. But Treece said the high profile of the Texaco bankruptcy case may also put the company under an uncomfortable spotlight. "What seems fair and what may be legally correct may be two entirely different things," Treece said. "This may be a signal to Congress to do something about tightening the bankruptcy laws. You are either a chicken or a duck, just like you are either bankrupt or you're not." Reuter 

LATEST BRITISH POLL HAS THATCHER STILL WAY AHEAD

The latest British opinion poll gave Margaret Thatcher's Conservative party a huge 17 point lead over the opposition -- the highest rating yet for the prime minister who is seeking a record third consecutive term. The poll in today's Sun popular tabloid showed the Conservatives could win a solid majority of 125 seats in Parliament in the next general election. Thatcher must call an election by June 1988 but is widely expected to call it this year. The survey gave the Conservatives 44 pct of the votes, left-wing Labour and the centrist Liberal-Social Democratic Alliance 27 pct each. Reuter 

TEXACO <TX> PENNZOIL <PZL> WIDE APART ON ACCORD

Texaco Inc and Pennzoil Co are still far apart on a settlement of their 10.3 billion dlrs dispute, but both sides are still willing to settle, executives from both companies said. Pennzoil chairman J. Hugh Liedtke, on the MacNeil/Lehrer News Hour, said Pennzoil had offered to settle the dispute along the lines suggested by Wall Street analysts - something in the range of three to five billion dlrs - but Texaco Inc president James Kinnear said it was the first time he heard the three to five billion dlrs figure. Kinnear, on the television news program, said Pennzoil had talked about four to five billion dlrs previously. Both executives, who were taped in separate interviews, each accused the other of irresponsible actions in the ongoing legal battle, which involves Texaco's 1984 takeover of Getty Oil Co. Yesterday, Texaco filed for protection under Chapter 11 of the U.S. Bankruptcy code, stating it was unable to continue its business because of the legal fight. Liedtke said Pennzoil is prepared to litigate the matter as long as it takes to bring the case to a final conclusion. Lietke said he thought it would take about 18 months to two years to conclude the case. Asked if chance of a settlement were out the window, Liedtke replied, "I've never thought that was the case. I always believed this could be settled. But it will never be settled as long as Texaco has the position that it has that either you will settle with us on our basis or we will hold our breath till we die." But Kinnear said, "we offered a big reasonable settlement." Kinnear also seemed to confirm remarks made at an analysts meeting earlier today where Texaco said it would only settle the matter for far less than what it offered before. "The offers we made yesterday won't be repeated tomorrow," Kinnear said. Kinnear charged that Pennzoil was "using extortionary pressure to deny us the ability to conduct our business." He said that pressure forced the company into its Chapter 11 filing. But he added he still hoped the dispute would be settled. Reuter 

CHRYSLER <C> NON-PROFIT GROUP SELLS UNIT

Chrysler Corp's Chrysler Motors Corp said its Chrysler Training Corp non-profit organization sold the name and assets of its Motech Auto Mechanic and Body Shop Schools to O/E Corp of Troy, Mich. The sale price was not disclosed. Under the Internal Revenue Service code, proceeds from the sale of Motech must be donated to another tax-exempt nonprofit organization. Chrysler did not reveal the name of the group that received the proceeds. Reuter 

POTLATCH CORP <PCH> 1ST QTR NET

Shr 63 cts vs 47 cts Net 16.8 mln vs 12.4 mln Sales 248.6 mln vs 233.3 mln Reuter 

DENSE-PAC MICROSYSTMS <DPAC.O> NAMES CEO

Dense-Pac Microsystems Inc said it named James Turner is chief executive officer. He replaces Anthony Macedo, who was acting on an interim basis and remains a director. Turner had been president of Titan Severe Environment Systems Co. Reuter 

DICEON ELECTRONICS <DICN.O> TO BUY SYMTRON CORP

Diceon Electronics Inc said it has entered an agreement in principal to buy closely-held Symtron Corp in a stock exchange transaction. Under the pact, Diceon would exchange 300,000 shares of its stock for all of Symtron's shares. The acquisition, which is subject to board approval and a definitive agreement, is expected to be concluded during May. Diceon said Symtron management would continue running the business, which would become a wholly-owned subsidiary. Symtron had 1986 sales of about 20 mln dlrs. Reuter 

ADVANCED GENETIC SCIENCES <AGSI.O> FROSTBAN TEST

Advanced Genetic Sciences Inc said it received final authorization for field testing of its genetically altered bacteria, Frostban, developed to protect fruit and nut crops from frost damage. The company said its state permit by the California Department of Food and Agriculture is the final clearance needed, ending three and one-half years of laboratory and greenhouse testing and various government approvals. A public interest group concerned about the environmental safety of the test tried repeatedly to block government approval of the testing. "Its's gratifying when government relies on scientific expertise in reaching its decision and rejects the rhetoric that has delayed this risk-free field trial for too long," said Advanced Genetic Sciences President and Chief Executive Officer Joseph Bouckaert. The company said it expects to begin the testing, on strawberry plants covering one-fifth of an acre, later this spring. The test site is near Brentwood, California. Reuter 

ECUADOR SAYS WILL RESUME LIMITED OIL PRODUCTION

Ecuador will resume limited crude output next week to fill up storage tanks as a first step to pump oil to a Colombian pipeline on May one, the state Ecuadorean Petroleum Corp (CEPE) said. CEPE manager Carlos Romoleroux told reporters that Ecuador would begin pumping an unspecified amount of crude in northeastern jungle oilfields at the end of next week in preparation to send the oil through a new pipeline link-up to neighbouring Colombia. Oil production in Ecuador was halted on March five when an earthquake damaged the country's main pipeline from Lago Agrio, at the heart of the Ecuadorean jungle oilfields, to the pacific port of Balao. It will take at least until the end of July to repair the pipeline and return output to normal levels. The country was pumping between 245,000 bpd and 250,000 bpd before the tremor. To resume limited output in the meantime, Ecuador is constructing a 26 mile pipeline linkup, capable of carrying 55,000 bpd, from Lago Agrio to Puerto Colon, the starting point of Colombia's pipeline to the Pacific port of Tumaco. The original target date to resume limited crude output was May eight, the scheduled date for the inauguration of the Lago Agrio to Puerto Colon pipeline, an energy ministry spokesman said. Reuter 

NEW ZEALAND CPI RISES 2.3 PCT IN MARCH QUARTER

New Zealand's consumer price index, CPI, which measures the rate of inflation, rose 2.3 pct in the quarter ended March 31 against an 8.9 pct rise in the December 1986 quarter and a 2.3 pct rise in the March 1986 quarter, the Statistics Department said. For the 12 months ended March 1987 the CPI rose 18.3 pct against 18.2 pct in 12 months ended December 1986 and 13.0 pct in the 12 months ended March 1986, it said in a statement. Nearly half the increase in the latest quarterly index was contributed by the housing group, the department said. The December quarter was significantly affected by the introduction of a 10 pct value added goods and services tax, GST, in October 1986, it added. However, some GST charges not measured in the December 1986 quarter influenced the latest March quarterly figure, it said. This is because of an unavoidable lag in price information, particularly on housing, used cars and insurance on household contents, it added. Reuter 

LATEST POLL PUTS THATCHER'S CONSERVATIVES AHEAD

The latest British opinion poll, gave Margaret Thatcher's Conservatives a 17-point lead over the opposition -- the highest rating yet for the Prime Minister who is seeking a record third consecutive term. The poll in today's Sun tabloid showed the Conservatives could win a majority of 125 seats in Parliament in the next general elections. Thatcher must call the elections by June 1988, but is expected to do so this year. The survey, conducted between April 10 and 12 among 1,000 adults eligible to vote, gave the Conservatives 44 pct, and left-wing Labour and the centrist Liberal-Social Democratic Alliance 27 pct each. 

COLOMBIA'S TEXACO <TX> OPERATIONS NOT AFFECTED

The operations in Colombia of Texas Petroleum Co, a subsidiary of Texaco Inc, will not be affected by the legal dispute with the Pennzoil Co, its manager John Buttle said in a communique. The company yesterday filed protection under Chapter 11 of the Bankruptcy code. He said Texaco Inc did not operate outside the United States and operations of Texas Petroleum here are unaffected. Texas Petroleum Co, which posted a seven mln dlr profit in 1986 in Colombia, exploits in association with state-run oil company Ecopetrol some crude and natural gas wells. Reuter 

Bank of Japan intervenes to support dollar after Tokyo opening, dealers

BANK OF JAPAN INTERVENES IN TOKYO AFTER OPENING

The Bank of Japan intervened in Tokyo to buy dollars just after the market opened, dealers said. The dollar opened at 142.05 yen against 142.15/25 in New York and 142.50 at the close here yesterday. The bank stepped into the market amid selling pressure from interbank dealers, dealers said. REUTER 

MIYAZAWA SEES EVENTUAL LOWER U.S. TRADE DEFICIT

Japanese Finance Minister Kiichi Miyazawa told a press conference he expects the U.S. Trade deficit to eventually start reflecting economic fundamentals, which should influence exchange rates. The minister was not referring to the U.S. Trade data to be released in Washington later today. Miyazawa also said he told major industrial nations when he was in Washington last week that present exchange rates are not necessarily good. He had said earlier in Washington that current exchange rates were within levels implied in the February Paris currency accord. REUTER 

Japan March wholesale prices rise 0.2 pct (0.1 pct February drop) - official

NO TALKS SET ON PROPOSED JAPAN TELECOM MERGER

No formal talks have been scheduled yet among companies involved in a controversial proposal to merge two groups seeking to enter Japan's international telecommunications sector, an official from one group said. "Nothing has been firmed up yet," said an official at <International Digital Communications Planning Inc> (IDC), one of the groups set up last year to study competing against <Kokusai Denshin Denwa Co Ltd>, which monopolises the sector. Britain's Cable and Wireless Plc <CAWL.L>, which holds a 20 pct share in IDC, has opposed plans to merge with rival group, <International Telecom Japan Inc>. Under the plan, backed by the Post and Telecommunications Ministry, Cable and Wireless and U.S.-based <Pacific Telesis International Inc> would become core companies in the merged firm, with shares equal to those of the six major Japanese core companies and seats on the board of directors. Britain, angry over what it feels are moves to restrict Cable and Wireless' role in the sector, views the issue as a test case. The IDC official declined to specify what was holding up the talks. A spokesman for C. Itoh and Co Ltd <CITT.T>, which holds 20 pct of IDC, said a meeting may be held later this week. REUTER 

CME MEMBERS REJECT PETITION TO BAN DUAL TRADING

Members of the Chicago Mercantile Exchange (CME) rejected a membership petition to ban dual trading in Standard and Poor's 500 stock index futures and options on futures, the exchange said. Members voted 1,272 to 525 against a proposal to prohibit members from filling customer orders and trading for their own account, known as dual trading, in the S and P contracts. Instead of an outright ban on dual trading, the CME board adopted new rules, which include limitations on dual trading in stock index products, that will now be sent to the Commodity Futures Trading Commission for approval. The new rules will limit the use of the top step in the S and P 500 futures and options pits, where the most active contract is traded, to brokers filling customer orders only. They may not transact business for their own account. The CME last week hired a new compliance officer and increased the staff of the market surveillance department to enhance security and regulation of the exchange. The rule changes also require brokers in S and P futures and options to manually record to the nearest minute the time of all personal trades in stock index products. Finally, the board voted to impose strict limits on trading within broker groups applicable to the entire exchange and redefined broker groups to more completely cover all forms of associations. A percentage limitation on the personal trading of a broker group member with other members of the group, and a percentage limitation on filling orders between members of the same broker group, will be set. John Sandner, CME board chairman, said in a statement the original petition would have adversely affected liquidity, discriminated against every broker and deprived all customers of their right to choose a broker who is a dual trader. REUTER 

HAITIAN CANE PLANTERS PROTEST SUGAR MILL CLOSURE

About 2,000 sugar cane planters marched to Port-au-Prince to protest against the closure of Haiti's largest sugar mill and second biggest employer. The Haitian American Sugar Company closed on Friday because of a huge surplus of unsold sugar. The firm said Haiti has been flooded with smuggled refined and unrefined sugar from the Dominican Republic and refined U.S. Sugar from Miami. The closure idled 3,500 factory workers and left 30,000 small cane planters with no outlet for their cane. The protesters blamed Finance Minister Lesly Delatour for the closure, saying his policies have hurt Haitian businesses. REUTER 

CHINA TO OPEN FIRST PHASE OF LARGE ALUMINIUM PLANT

China, a major aluminium importer, will open the first phase of its biggest aluminium plant on October 1, the China Daily said. The first phase of the plant, located in Qinghai province, will have an annual capacity of 100,000 tonnes of ingots, half the capacity of the finished plant. It will turn out 4,000 tonnes in 1987, the paper said, but gave no more details. Construction of the 510 mln yuan plant began in April 1984. Customs figures show China imported 266,241 tonnes of aluminium and alloy in 1986, down from 487,862 in 1985. REUTER 

TAIWAN IMPORTS 210,000 TONNES SOUTH AFRICAN MAIZE

Taiwan imported about 210,000 tonnes of South African maize between January 1 and April 13, the joint committee of local maize importers said. Under a three-year agreement signed last year, South Africa will export 600,000 tonnes of maize a year to Taiwan. A committee spokesman told Reuters the rest of this year's quota will be shipped during the rest of 1987. REUTER 

TAIWAN LIKELY TO BUY MORE U.S. SOYBEANS

A 50 pct cut in the import tariff for soybeans should help boost 1987 U.S. Soybean exports to Taiwan, a spokesman for the joint committee of soybean importers told Reuters. He said the cut to 3.5 from seven pct was approved by the cabinet yesterday and would go into effect within a week. The cut will encourage local importers to increase 1987 soybean imports to 1.9 mln tonnes from 1.74 mln last year, he said. The previous target for 1987 was 1.81 tonnes. Taiwan imports more than 90 pct of its soybeans from the U.S. And the rest from South America. The spokesman said the increase in imports from the U.S. Is in line with government efforts to reduce Taiwan's trade surplus with Washington, which rose to 3.61 billion U.S. Dlrs in the first quarter of 1987 from 2.78 billion a year ago. "The tariff cut is very helpful for American suppliers (who want) to boost their exports to Taiwan," Steve Chen, country director of the American Soybean Association, told Reuters. REUTER 

CHINA FACES EXTENDED SORGHUM SHORTAGE

China will be short of sorghum in 1987 for the sixth successive year because high production costs and low profits discourage farmers from growing it, the China Daily Business Weekly said. It said sorghum output in calendar 1986 was 5.34 mln tonnes, down five pct from the 1985 level, and prices on the free market rose in January to 0.42 yuan per kg, up 14 pct on January 1986. It said sorghum acreage in 1987 is six pct lower than in 1986. Sorghum accounts for 40 pct of the raw materials needed by China's breweries, it added but gave no more details. REUTER 

Bank of Japan intervening to support dollar against yen, dealers

JAPAN MARCH MONEY SUPPLY RISES 9.0 PCT

Japan's broadly defined money supply average of M-2 plus certificate of deposits (CD) rose a preliminary 9.0 pct in March from a year earlier, compared with an 8.8 pct rise in February, the Bank of Japan said. The seasonally adjusted March average of M-2 plus CDs rose 0.8 pct from February when it rose an identical 0.8 pct from a month earlier, it said. Unadjusted M-2 plus CDs stood at an average 343,600 billion yen in March compared with 336,015 billion in February. REUTER 

ASIA GENERALLY WELCOMES U.S. NIGHT FUTURES TRADING

Traders in financial centres in Asia generally welcomed the first U.S. Night session of futures trading which starts in Chicago on April 30. Traders in Japan, Sydney and Hong Kong said they expected the move to bring benefits, but traders and bankers in Singapore said it posed a serious threat to the Singapore International Monetary Exchange (SIMEX). The Commodity Futures Trading Commission (CFTC) in Washington gave unanimous approval to the Chicago Board of Trade's (CBT) proposals on Tuesday. The CBT plans to offer futures on U.S. Treasury notes and bonds, and options on those futures, from 1800 to 2100 hrs Chicago time (2300 to 0200 gmt) on Mondays to Thursdays. The sessions would mark the start of the trading day, which would end at the present close of business the next day. The proposed hours are designed to coincide with the busiest morning trading hours in Japan. But Andrea Corcoran, chief of CFTC's division of trading and markets, said on Tuesday she expected the evening sessions to attract primarily U.S. Firms looking for additional overnight protection. Traders in Tokyo said the night sessions were expected to help expand U.S. Treasury bond trading volume and enlarge daily fluctuation ranges in Tokyo. They said Japanese financial institutions were very interested in using overseas futures markets, but were waiting for finance ministry approval to do so. Approval is expected before the end of the month. The foreign branches of financial institutions can already trade futures, but in practice make little use of them. But, traders said the timing of the launch was poor, as it is in a ten day period when Tokyo has three public holidays. The Tokyo traders said because of the holidays little interest in night trading could be expected until after May 5. Tokyo bond managers said also that participation could be limited by a lack of experienced futures traders in Tokyo. The Sydney Futures Exchange (SFE) hoped the four-hour trading overlap with the new CBT hours would boost activity in Sydney's eurodollar and U.S. Treasury bond contracts, spokesman Stephen Calder said. The eurodollar contracts are linked to the London International Financial Futures Exchange (LIFFE). Calder said turnover in both contracts had been disappointingly low since they were introduced last October. He said the CBT move would broaden arbitraging opportunities for SFE traders. "With a late evening lead from Chicago, there's also more chance that people will deal here in the afternoon," he said. But in Singapore news of the CBT move was not welcomed. A senior executive of a Japanese securities firm operating in Singapore told Reuters: "Expanding global links between futures markets mean that SIMEX must add Chicago and London and Sydney to its list of rivals." "LIFFE could cut further into the SIMEX contract, with a U.S treasury bond contract that can be off-set on the CBOT," the Singapore-based Japanese trader said. Such a contract is expected later this year, he said. Other SIMEX traders said local interest in the Sydney treasury bond contract might be boosted if the Sydney exchange established a three-way link with Chicago and London. LIFFE has signed a memorandum of understanding with CBOT for such a link. "If this link-up materializes, most traders are likely to by-pass SIMEX," said one trader. Hong Kong commodity traders welcomed the CFTC's decision, though they added that local investors would have been more interested in financial futures. "I think it is very good, because the move will help us to increase our market share here," said Joseph Tan, manager of <Bache Securities (HK) Ltd>. He said that Bache, like many other local units of U.S. Commodity houses, had been participating in Chicago's rregular hours of trading for a long time and would like to extend its business. Local Hong Kong houses also welcomed the move, but a spokesman for Shun Loong Co said investors would be more interested if stock index or currency futures were available. Futures contracts in the local Hang Seng index have become increasingly popular since they were introduced to the market in May 1986. (See ECRA for Spotlight Index) REUTER 

Tokyo stock index rises 69.92 to record closing 23,938.35 - brokers

CHINA UNIT TO ISSUE BONDS IN HONG KONG

Guangdong International Trust and Investment Corp is preparing to issue 300 mln HK dlrs in bonds in Hong Kong, the China Daily Business Weekly said. It said the issue will be the first such bond issue in Hong Kong by a local organisation but gave no more details. REUTER 

SOUTH KOREA TO CHANGE POLICIES TO AVERT TRADE WAR

South Korea has decided on major changes in its trade, investment and finance policies aimed at reducing the growth of its balance of payments surplus and avoiding a trade war with the United States, Deputy Prime Minister Kim Mahn-je said. Kim told reporters the excessively fast rise in exports could make South Korea too reliant on exports, increase nflation and produce trade friction. The policy shift, which means abandoning Seoul's goal of rapidly reducing its foreign debt, was worked out at a series of ministerial meetings. Kim, who is also Economic Planning Minister, said the current account surplus, previously expected to exceed eight billion dlrs this year, would be held at about five billion dlrs by increasing imports, accelerating market liberalisation and rationalising exports. He said Seoul would try to limit its current account surplus to around five billion dlrs a year for the next few years, although trade volume would continue to grow. "This will gradually reduce the ratio of the surplus to GNP (gross national product) from the current five pct level to three pct by 1991," he added. Koo Bon-yong, an aide to Kim, said South Korea's foreign debt had been expected to fall below 40 billion dlrs by the end of 1987, against the initial forecast of 41.8 billion, and 44.5 billion dlrs at end-1986. "But now (with the policy changes) the debt is expected to remain above 40 billion dlrs, although it could still be lower than the originally projected 41.8 billion dlrs," he said. The policy change was announced two days before the scheduled arrival of U.S. Commerce Secretary Malcolm Baldrige for talks with Trade Minister Rha Woong-bae. South Korea is under U.S. Pressure to reduce its bilateral trade surplus, which rose to 7.4 billion dlrs last year from 4.3 billion dlrs in 1985. Kim said the policy changes were also prompted by the swing in South Korea's current account to a surplus of 2.06 billion dlrs in the first quarter of 1987 from a deficit of 438 mln dlrs in the same 1986 period. First quarter 1987 exports rose 36 pct to 9.4 billion dlrs. The government would make foreign currency loans worth 2.5 billion dlrs to firms willing to import capital goods, raw materials and equipment, preferably from the U.S., He said. "The foreign currency-based loans, which carry interest at 1.5 points above LIBOR (London Interbank Offered Rate), are considerable incentives given to increase imports," Koo said. Koo said the loans would be repayable in foreign currency. "It means they could become interest-free loans if the Korean currency continues to rise in value," he said. He said the South Korean won would be revalued against the dollar gradually, but added "We do not believe in rapid one-shot changes in the value of the won." The won, fixed at 839.70 to the dollar today, has risen six pct against the dollar since the beginning of 1986. REUTER 

JAPANESE VEHICLE EXPORTS, OUTPUT FALL IN 1986/87

Japan's vehicle exports fell 3.8 pct to 6.59 mln in the year ended March 31, 1987, while vehicle output fell 1.2 pct to 12.27 mln, industry sources said. Toyota Motor Corp <TOYO.T> said its exports fell 5.5 pct to 1.87 mln in 1986/87, and comprised 1.20 mln cars, down 0.8 pct from a year earlier, 649,587 trucks, down 11.7 pct, and 14,797 buses, down 48.2 pct. Nissan Motor Co Ltd <NSAN.T> said its 1986/87 exports fell 8.1 pct to 1.29 mln. They comprised 1.03 mln cars, down 0.3 pct from a year earlier, 258,278 trucks, down 29.5 pct, and 4,857 buses, down 37.1 pct. Toyota's exports to the U.S. Rose 4.2 pct from a year earlier to 1.01 mln and those to Europe rose 17.7 pct to 428,977. Of the European total, shipments to West Germany rose 46.9 pct to 96,589 and those to U.K. Fell 13.9 pct to 34,131. Toyota's 1986/87 exports to the Middle East fell 56.8 pct to 71,631 and those to Southeast Asia fell 58.2 pct to 62,145. Nissan exports to the U.S. Fell 5.5 pct to 659,118. Exports to Europe rose 17.3 pct to 413,462, of which those to West Germany rose 43.3 pct to 97,284 but those to the U.K. Fell 8.9 pct to 100,831. Exports to the Middle East fell 59.6 pct to 40,679,those to Southeast Asia fell 55.8 pct to 33,398. REUTER 

BANK OF CHINA BUYS SHARE IN LUXEMBOURG COMPANY

State-owned Bank of China has bought a three to five pct share of BAII Holding SA, a financial institution registered in Luxembourg, the China Daily Business Weekly said. It said the institution is 50 pct owned by Arab interests and has set up a wholly owned commercial banking branch in Hong Kong but gave no more details. REUTER 

SAUDI ARABIA WANTS TO INCREASE OIL SALES TO JAPAN

Saudi Arabia hopes to increase the volume of its oil exports to Japan through expanding bilateral trade, Saudi Arabian Interior Minister Naif bin Abdul-Aziz said. He told a Tokyo reception his country hopes to raise crude and products exports to Japan to earlier levels, but did not elaborate. To promote trade, Saudi Arabia is inviting Japanese industries to do business there, he said. Japanese firms now have long-term contracts to import a total of 150,000 barrels per day of Saudi crude. REUTER 

U.S. URGES JAPAN TO OPEN FARM MARKET FURTHER

U.S. Agriculture Secretary Richard Lyng has asked Japan to open its farm market further to help Washington cut its trade deficit and ease protectionist pressures, an Agriculture Ministry official told reporters. Hideo Maki, Director General of the ministry's Economic Affairs Bureau, quoted Lyng as telling Agriculture Minister Mutsuki Kato that the removal of import restrictions would help Japan as well as the United States. The meeting with Kato opened a 12-day visit to Japan by Lyng, who is here to dicuss farm trade. However, Maki quoted Kato as replying that Japan was already the world's largest grain importer. Kato added Japan is the largest customer for U.S. Grain and depended on domestic output for only 53 pct of its food requirements in 1985. Lyng said the U.S. Put high priority on talks on 12 farm products named in U.S. Complaints against Japan to the General Agreement on Tariffs and Trade (GATT) last year, as well as on beef, citrus products and rice. Kato said Japan will maintain its current level of self-sufficiency and will try not to produce surplus rice because potential production is higher than domestic demand. The world farm market suffers from surpluses because of rising production by exporting countries, he added. Lyng said the U.S. Has been trying to reduce farm product output with expensive programs, Maki said. Maki said the U.S. And Japan will hold detailed discussions on each trade item as well as a new round of GATT trade talks at a meeting on April 20, in which U.S. Trade Representative Clayton Yeutter will join. REUTER 

S.KOREA TO INVESTIGATE LARGE-SCALE STOCK INVESTORS

South Korea's Securities Supervisory Board has ordered securities houses to report by tomorrow the list of their clients holding shares worth 100 mln won or more, Board officials said. They said the order was aimed at preventing large investors from manipulating the Seoul exchange to make illegal margin profits. "It was believed that such shareholders were responsible for overheating the market earlier this year," one official told Reuters. No further details were given. REUTER 

60,000 TONNES CORN SMUGGLED INTO PHILIPPINES-PAPER

At least 60,000 tonnes of corn worth 240 mln pesos have been smuggled into the Philippines over the past few months, the Manila Bulletin newspaper said, quoting an official in the National Food Authority (NFA). The official, who was not named, said a large corn shortage and corruption among customs and Coast Guard personnel have jeopardised the government's ban on corn imports, which was aimed at saving foreign currency. The newspaper quoted NFA Marketing Director Jig Tan as saying monthly corn consumption stood at about 331,000 tonnes against a national stock inventory of 191,732 tonnes. Tan said a continuing drought affecting about 49,150 hectares of corn has led to the loss of 43,725 tonnes of corn worth 174.9 mln pesos and contributed to the shortage. The newspaper quoted Linda Geraldez, an NFA statistician, as saying despite the drought and the shortage, the total inventory at the end of the January/June crop season is expected to be at least 201,000 tonnes. REUTER 

PAPER SAYS U.S. TRADE DEFICIT CUT TO 13.65 BILLION

The Washington Post said the U.S. Commerce Department yesterday issued a new report showing that the U.S. Merchandise trade deficit was 13.65 billion dollars in February, a reduction of 1.4 billion dlrs from the 15.06 billion figure the department reported only two days earlier. The newspaper said: "News of the unexpectedly large 15 billion deficit helped batter the dollar's value on foreign exchange markets and boosted U.S. Interest rates. "However, the new report went largely unnoticed by financial markets since such a downward revision in the deficit is a monthly occurrence." The Washington Post said: "By law, the department must first publish what a top commerce official agreed are misleading trade figures and then wait 48 hours before putting out the more accurate ones." No one was immediately available at the Commerce Department for comment on the Washington Post report. REUTER 

SOUTH KOREA'S LEADING INDICATORS RISE IN FEBRUARY

South Korea's index of leading indicators rose 1.9 pct to 172.9 (base 1980) in February after a 0.8 pct rise in January, to stand 17.2 pct higher than in Feburary 1986, provisional Economic Planning Board 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. REUTER 

DAI NIPPON TO ISSUE THREE DOMESTIC CONVERTIBLES

Dai Nippon Printing Co Ltd <DPRI.T> said it will issue three convertible yen bonds on domestic markets. It will issue a 25 billion yen 15-year bond through public placement with Yamaichi Securities Co Ltd as lead manager. It will also issue a 15 billion yen 10-year bond and a 10 billion yen six-year bond through public placement, both with Nomura Securities Co Ltd as lead manager. Coupon and conversion price for the par-priced bonds will be set at Dai Nippon's next board meeting. Payment will be due on June 1. The 15-year bond will mature on May 31 2002, the 10-year on May 30 1997, and the six-year on May 31 1993. Dai Nippon's share price rose 20 to 1,800 yen on the Tokyo Stock Exchange today. REUTER 

JAPAN LIKELY TO ALLOW USE OF OVERSEAS FUTURES

The Finance Ministry is likely to allow Japanese financial institutions here to use overseas financial futures market from next month, bond market sources said. A senior ministry official declined to give an exact timing, but said he expects removal of the ban on trading in overseas financial futures as soon as possible. The domestic call for participation in overseas markets to hedge foreign securities holding risks was reinforced by the launch of a night trading session by the Chicago Board of Trade from April 30. The session covers morning trading hours in Tokyo. Resident financial institutions are currently not allowed to participate in foreign financial futures markets, although their overseas branches may. The newly eligible institutions are expected to be securities houses, banks, life insurance companies and investment trusts, the market sources said. But the ministry is likely to prohibit broking business by those institutions and by individuals, the sources said. In addition corporate investors are expected to be barred initially because of their relative lack of experience. REUTER 

JAPAN'S LDP TO CALL FOR FLEXIBLE MONETARY POLICIES

Japan's ruling Liberal Democratic Party (LDP) will call for adequate and flexible management of the nation's monetary polices in its plan to expand domestic demand, a senior LDP official told Reuters. Junichiro Koizumi, the head of the LDP committee working out the plan, said the phrase should not be taken as implying an immediate cut in Japan's 2.5 pct discount rate. "The LDP generally believes that there is no need for a further discount rate cut at the moment," he said. But Koizumi said the LDP does not rule out a rate cut if necessary in the future. Bank of Japan Governor Satoshi Sumita told a press conference on Wednesday that the central bank does not have any intention of easing credit conditions. REUTER 

FRENCH CORPORATE BANKRUPTCIES RISE IN MARCH

French corporate bankruptcies rose to a seasonally-adjusted 2,857 last month from 2,631 in February and 2,572 in March 1986, the National Statistics Institute (INSEE) said. The rise has been progressive since the end of last year, with bankruptcies totalling 2,367 in January and 2,195 in December 1986. The cumulative total for the first quarter of this year was 7,855 bankruptcies, four pct up on 7,560 in the first quarter of 1986. REUTER 

INDIA'S ANNUAL INFLATION RATE DROPS MARGINALLY

The Finance Ministry said India's wholesale-price linked inflation rate dropped marginally to 5.3 pct in all fiscal 1986/87 ended March from 5.8 pct in 1985/86 and 7.1 pct in 1984/85. The average wholesale-price related inflation stood at 5.2 pct in March this year against 5.1 pct a year ago, the Ministry said in a statement. It said wholesale prices of cement, textiles and jute fell in 1986/87, compared with the previous year, but milk, cereals (mainly wheat and rice), fruits and vegetables, edible oils, tobacco and fertilisers were costlier in 1986/87. REUTER 

WORLD LENDING PATTERN CHANGING - MANILA BANK CHIEF

International banks have radically changed their attitudes towards debt and lending and debtor nations will have to explore new methods of ensuring inflows, Philippine Central Bank Governor Jose Fernandez said. "Commercial banks have tended to be rather difficult in terms of new money for some time now," he told reporters at a news conference. "Within the world there are enormous changes taking place in attitudes of different banks." He said the banks were no longer flush with funds from the post-1973 oil boom and were reluctant to lend money. "They don't have the same kind of money they used to have ... They find their whole deposit base eroding," Fernandez said. Groups of major banks had decided that the international arena was not to their liking. "They wind up with 7/8 (over Eurodollar rates) and who wants 7/8 really? It's nothing. They want to get the frills, but if they are not big enough they don't get the frills." The Philippines on Wednesday announced it wanted to renegotiate a debt restructuring accord it reached on March 27 with its 12-bank advisory committee, saying it wanted the same terms as were granted to Argentina earlier this week. Argentina was granted a 19-year repayment at 13/16 points over Eurodollar rates, the same historically low spread that Mexico won last October, while the Philippines, which had insisted on a deal similar to Mexico's, restructured 10.3 billion dlrs of its 28.2 billion dlr foreign debt at 7/8. Fernandez said the old type of new-money agreement, where hundreds of banks were forced into involuntary lending by an advisory committee that negotiated agreements with debtor countries, was becoming increasingly difficult. He said involuntary lending proved useful in the two or three years since the Mexican debt crisis in 1982. "But the present tendency has been that more and more of the banks, specially the regionals or the small ones, have either sold off their portfolios or simply by policy will not put up any more money," Fernandez said. He said another disturbing development was the so-called national quota approach adopted by groups of banks. "Groups of banks by nationality have chosen to take a look at what other groups of banks in other countries are willing to do and if let us say British banks wind up giving 99 pct of what is needed and U.S. Banks give only 92 pct, then the British banks say as a whole they will pull out," he said. "There are banks that have decided that lending is not a good business any more. They want to deal in securities, they want to go into investment banking, they want to go into the turnover business rather than the carry business," Fernandez said. "We have to thread our way through a constellation of banks, all of whom have different objectives." He said in order to survive, the Philippines would have to try and stimulate new types of inflows, "whether this be direct investments, whether this be investments by institutions that now have chosen not to lend but to invest, or whether this be debt to equity conversions." REUTER 

JAPAN DETAILS PLAN TO STAVE OFF TRADE PROBLEMS

Japan's Liberal Democratic Party (LDP) has drawn up a detailed plan calling for large tax cuts and an increase in government purchases of foreign goods, the head of the committee working out the plan, Junichiro Koizumi, said. The plan will also urge the government to double 1985's official development assistance to 7.6 billion dlrs within five years instead of seven as the government had promised, senior LDP officials said at a press conference. LDP executive council chairman Shintaro Abe will explain the plan to U.S. Officials when he visits the U.S. On April 19. Abe's visit is to prepare for Prime Minister Yasuhiro Nakasone's talks with President Ronald Reagan later this month. Koizumi said the LDP plan will not specify the size of the tax cut or the amount of domestic demand to be stimulated. However, top LDP executives will work out figures so that Abe will be able to offer specifics to U.S. Officials. The proposed increase in procurement of foreign goods by the government will probably include the purchase of super computers, LDP officials said. specific trade problems with other nations and will encourage flows of funds to developing countries, the officials said. The LDP expects the measures to prop up the economy and lessen trade problems with the U.S., They added. The basic ideas of the LDP's plan were presented to and welcomed by monetary authorities of the major industrial nations in Washington last week, they said. The LDP plan will form the basis for the last of several packages to stimulate Japanese domestic demand and will be unveiled by the government in late May. REUTER 

CHINA TRADE DEFICIT FALLS SHARPLY, RESERVES RISE

China's trade deficit in the first quarter fell to 1.05 billion dlrs from 3.04 billion in the same 1986 period, customs figures show. Zhang Zhongji, spokesman of the State Statistical Bureau, quoted the figures as showing exports rose 27 pct to 7.28 billion dlrs and imports fell 5.1 pct to 8.33 billion. He said if imports of gifts, foreign aid items and materials for joint ventures are excluded, the deficit was only 350 mln dlrs, and the surplus on invisibles was 700 mln. As a result, foreign exchange reserves increased somewhat from their level at end-1986, he said, but gave no figure. Official figures show the reserves at 10.514 billion dlrs at end-1986, down from 11.9 billion at end-1985. Zhang said one reason for the rise in exports was improved incentives to export firms, which are being allowed to retain more foreign exchange from the goods they sell. He said first quarter exports to Hong Kong and Macao rose 35.5 pct to 2.48 billion dlrs and imports rose 55.3 pct to 1.46 billion. Exports to Japan fell 2.3 pct to 1.28 billion and imports 24.4 pct to 2.14 billion. Exports to the U.S. Rose 23 pct to 640 mln dlrs and imports fell 26.7 pct to 840 mln. Exports to the EEC rose 35.1 pct to 770 mln dlrs and imports fell 3.8 pct to 1.5 billion, he said. REUTER 

THAI VENTURE WILL SELL RUBBER TO CHINA

Teck Soon Co Ltd, a major Thai rubber exporter has formed a joint venture with state-owned Chinese International Economic and Technology Development Corp to produce 50,000 tonnes of sheet rubber annually for export to the Chinese auto industry, Teck Soon general manager Chit Surivitchpan said. Chit said a new joint venture company will have a registered capital of four mln dlrs. China imported 69,952 tonnes of Thai sheet rubber last year and 60,296 tonnes in 1985. REUTER 

JAPAN FARM REFORM A KEY TO TRIMMING TRADE SURPLUS

Basic reform of Japan's protected farm sector is a key to shifting its economy away from export to domestic-led growth, a vital step if it is to trim its trade surplus, securities analysts said. The farm sector, which is protected by import tariffs and quotas, propped up by subsidies and price supports, and sheltered by the tax system, has ample room for change, they said. "In economic terms, reform would be a plus," said Christopher Chew of brokerage firm James Capel and Co. The ultimate cost of the existing system is food prices twice those in Europe and two to three times those in the U.S., The analysts said. Spending on food accounts for about one quarter of the average household's budget and roughly 10 pct of the gross national product (GNP), according to a study by Chew. Reducing these prices could increase household spending power by five pct, his study said. The money could be spent on products which would have a more direct impact in boosting domestic growth, it added. "There's a lot of slack," a U.S. Government official in Tokyo said. "All that money could be spent on something else." Direct central government subsidies to the farm sector amount to some five billion dlrs per year. Independent estimates put total subsidies from all sources as high as 37 billion and the analysts said much of that money is wasted. Changing tax laws to encourage city residents who only farm on weekends to put their land up for sale for residential development would also give a boost to domestic spending, economists said. "Housing construction is the key strategic variable in the expansion of domestic demand," wrote Chihiro Nakajima, professor at Kyoto Gakuen University. Japanese business groups are calling for staged farm reform to shift some of the burden of trade friction and economic restructuring away from the manufacturing sector and onto the farm sector. Employers groups also want change. "If you really want to expand domestic demand, the way to do it is not to raise wages recklessly, but to reduce commodity prices," Bumpei Otsuki, President of the Japan Federation of Employers' Associations told a recent press conference. External pressures are rising as the U.S. And Europe seek removal of tariffs and quotas to help reduce their trade deficits with Japan. But vested Japanese interests opposed to change remain well entrenched, dimming prospects for quick reform, analysts said. Although the full-time farm population is falling and there are signs the LDP is paying more attention to urban constituencies, the ruling party remains heavily dependent on farm votes in the rural areas. One rural vote is worth several city votes due to the pattern of constituency borders. The LDP is already in political trouble over its tax reform plan and does not want to raise another sticky issue so soon, the analysts said. Consumer groups are politically weak and tend to accept the traditional view that higher prices are a small fee to pay for national food security, they said. Powerful agricultural cooperatives are fiercely opposed to import liberalisation, but are more flexible about reforms aimed at stepping up productivity, they said. Reform, when it comes, will be in response to specific pressure rather than an all-embracing program, said Chew. REUTER 

SRI LANKA AND IMF AGREE ON ECONOMIC REFORMS

Sri Lanka and the International Monetary Fund (IMF) have reached agreement on the broad outline of economic reforms, but tough negotiations are likely before the IMF approves up to 240 mln dlrs in loans, a senior finance ministry official told Reuters. He said the government and IMF this week agreed on a package to reduce the balance of payments deficit, improve management of public enterprises, reform tariffs, develop non-traditional exports and privatise public firms. An IMF-World Bank team will visit Colombo next month to start negotiations on details of a three-year economic reform programme. "There is a broad agreement on the content of the policy package for a structural reform," the official said. "But in areas where the reform would take place, there would be tough neotiations on how much you do and in what order should it take place," he added. Sri Lanka is seeking a total of about 240 mln dlrs in structural adjustment loans to support the balance of payments and in a compensatory financing facility to offset losses in commodity exports. Sri Lanka needs the IMF and World Bank approval of the two facilities to clear the way for negotiations on requests for aid and loans from donor countries. These include an expected pledge of 550 mln dlrs from from 12 industrialised countries and about 240 mln dlrs in loans from the World Bank and the Asian Development Bank. Finance Minister Ronnie De Mel said in an interview published today by the Daily News that there was likelihood of Sri Lanka obtaining all of that aid despite intense lobbying by pro-Tamil and human rights groups abroad. He said that although friendly countries were still prepared to assist Sri Lanka with concessional aid, Colombo would have to surmount many problems in detailed negotiations due in May, June and August before these loans are finalised. "In these matters, there's many a slip between the cup and the lip as other governments have learned to their cost," De Mel said. REUTER 

JAPAN SEES HIGHER MONEY SUPPLY GROWTH THIS QUARTER

The Bank of Japan said it forecast Japan's broadly-defined M-2 money supply average plus certificates of deposit (CDs) will rise by about nine pct in the current April-June quarter against 8.5 pct a year earlier. Unadjusted M-2 plus CDs rose a preliminary 8.8 pct in January/March 1987 compared with a nine pct rise a year earlier, it said. The bank said the forecast rise is due to an increase in floating deposits due to recent low interest rates and a shift to private banks from the Bank of Japan of 400-1,000 billion yen by the recently privatised Japanese Railways. REUTER 

ABE SAYS 5,000 BILLION YEN PACKAGE TO SATISFY U.S.

Japan's plan to stimulate its economy will inject about 5,000 billion yen into the economy and should be appreciated by the U.S., Ruling Liberal Democratic Party (LDP) executive council chairman Shintaro Abe told reporters. "I expect considerable U.S. Appreciation of measures I have personally prepared with cooperation of the government and the LDP to help solve some individual issues pending with the United States," he said. Abe, former Foreign Minister, starts a week long visit to Washington on Sunday. Abe said he will meet President Reagan, Vice President George Bush, Secretary of State George Shultz, Defence Secretary Caspar Weinberger, Treasury Secretary James Baker, White House Chief of Staff Howard Baker and as many Congressmen as possible. Washington is likely to announce today a series of tariff sanctions against Japanese electrical products after it accused Tokyo of failing to meet terms of a 1986 bilateral pact on computer chip trade. "I will ask U.S. Leaders to rescind any sanctions," said Abe. Japanese officials have said Tokyo would appeal to the General Agreement on Tariffs and Trade (GATT) for possible compensation or the right to retaliate should U.S. Sanctions materialise. But Abe said, "We should not repeat retaliatory measures. What I would like to say to the United States is retaliation or protectionism alone cannot solve our trade disputes." REUTER 

VAN OMMEREN PLANS 75 MLN GUILDER BOND ISSUE

The Dutch transport, trading and storage firm PHS Van Ommeren NV <OMMN.AS> said it plans a 75 mln guilder bond issue with warrants attached. The bond will have a maturity of 10 years with repayment in the second five year period in equal yearly instalments. Each bond of 1,000 guilders nominal has five "A" warrants and 20 "B" warrants attached. Each warrant entitles the holder to acquire one non-cancellable share certificate. The exercise period of the "A" warrants will be three years and of the "B" warrants five years. Coupon and price of the bond issue as well as the exercise price of the warrants will be announced April 27 after the close of the Amsterdam Stock Exchange. REUTER 

EC PREPARES MOVES TO STOP JAPAN DEFLECTING EXPORTS

The European Community (EC) is ready to take measures to ensure that Japanese exports expected to be effectively excluded from the U.S. Market from today are not diverted to the EC, a spokesman said. President Reagan is expected to announce later today the imposition of 100 pct tariffs on 300 mln dlrs worth of Japanese goods ranging from computers and television sets to power tools and photographic film. The spokesman for the EC executive Commission said representatives of member states last Friday agreed a series of measures to prevent Tokyo deflecting exports to the EC. The spokesman declined to detail the measures, saying they were technical, and the Commission would decide their precise content depending on the exact details of the measures announced by Reagan. The EC fears Tokyo will step up exports to it of a range of products including calculating machines, measuring instruments, small televisions, tapes and some machine tools as a result of the U.S. Measures. But the spokesman said there was thought to be ample time to put the countermeasures in place after the Easter holiday. He noted the probable outline of Reagan's announcement and its date have been known for some time. The Japanese manufacturers of goods likely to be affected by the announcement are thought to have been stepping up their exports to the United States in recent weeks in order to beat the April 17 deadline, he noted. They were therefore unlikely to have stocks available for export to the EC immediately, he said. REUTER 

OECD CONSUMER PRICES RISE IN FEBRUARY

Consumer prices in the countries of the Organisation for Economic Cooperation and Development (OECD) rose 0.3 pct in February and inflation rose to 2.4 pct year-on-year, the OECD said in a communique. The OECD attributed the rise in consumer prices to the effects of the February 1986 drop in energy prices working their way out of the index. The February increase was less than Janauary's 0.4 pct increase but slightly above the average for the later months of 1986. Inflation in the 24 western industrialised nations in January was a revised 1.9 pct year-on-year. Retail energy prices rose by 0.3 pct, less than January's 1.1 pct increase. Energy prices for consumers were still nine pct lower than a year earlier, it said. Consumer prices excluding food and energy rose 0.3 pct in February, in line with previous months, although there has been some acceleration noticeable in the U.S. And Britain. Among the leading seven industrial countries, consumer price inflation was highest in Italy at 4.2 pct, followed by Canada at 4.0 pct, Britain at 3.9 pct, France at 3.4 pct, the U.S. At 2.1 pct and West Germany and Japan with negative rates of 0.5 pct and 1.4 pct respectively. REUTER 

LYNG OPENS JAPAN TALKS ON FARM TRADE BARRIERS

U.S. Agriculture Secretary Richard Lyng opens talks with Japanese government officials today well aware his demand for the opening of Japanese rice, beef and citrus markets is likely to be rejected. But in an interview with Reuters during the flight to Tokyo yesterday, Lyng said the goal of his trip was to throw an international spotlight on Japan's agricultural import protection in the hope pressure would build on Tokyo to open its markets. "(The Japanese) have said they are happy we are coming, but they are not going to give us anything," Lyng said. U.S. Officials do not expect any Japanese concessions during Lyng's two-week visit here. Any farm trade concessions would be unveiled later this month, they said. "If there is anything of consequence to offer (Prime Minister Yasuhiro) Nakasone would take it with him," when he visits Washington later in the month, one U.S. Official said. Lyng plans to ask Japan to open the door to rice imports by partially lifting the longstanding ban on foreign purchases. A private U.S. Rice trader visited Tokyo last week requesting Japan buy 200,000 tonnes of rice for industrial uses such as making sake. Japan has rejected the overture, saying Tokyo maintains a policy of self-sufficiency in rice. Lyng will also press Japan to eliminate an import quota for beef by April 1988 because he believes Japanese consumers would like to buy much more beef than currently allowed. He cited the example of a California company which transports live U.S. Cattle to Japan by air for slaughter to circumvent the beef quota. The cost of transport is higher than the value of the animal, he said. U.S. Officials said the Japan Livestock Industry Promotion Corporation which regulates beef imports, was forced to borrow from the fiscal 1987 quota earlier this year because the 1986 quota was exhausted and Japanese beef prices were rising. Japan has said it cannot open its markets to beef imports. Along with beef, the U.S. Will also press Japan to eliminate import quotas on fresh oranges and orange juice by April, 1988. Some U.S. Officials believe Japan may eventually be willing to scrap the quota on fresh oranges because liberalized trade would not necessarily damage the Japanese mandarin orange industry. The quota on juice may be harder to eliminate because imports might replace domestic produced juice, U.S. And Japanese officials have said. Lyng has resurrected a past U.S. Proposal that Japan buy surplus U.S. Foodgrains for donation to developing countries, but some U.S. Officials are skeptical action will be taken. Lyng will also urge Japan to put its domestic farm policies, including rice, on the negotiating table during GATT talks in Geneva. He said Japan must eliminate import quotas on certain minor food products or face possible U.S. Reprisals. REUTER 

ASIA GENERALLY WELCOMES U.S. NIGHT FUTURES TRADING

Traders in financial centers in Asia generally welcomed the first U.S. Night session of futures trading which starts in Chicago on April 30. Traders in Japan, Sydney and Hong Kong said they expected the move to bring benefits, but traders and bankers in Singapore said it posed a serious threat to the Singapore International Monetary Exchange (SIMEX). The Commodity Futures Trading Commission (CFTC) in Washington gave unanimous approval to the Chicago Board of Trade's (CBT) proposals on Tuesday. The CBT plans to offer futures on U.S. Treasury notes and bonds, and options on those futures, from 1800 to 2100 hrs Chicago time (2300 to 0200 gmt) on Mondays to Thursdays. The sessions would mark the start of the trading day, which would end at the present close of business the next day. The proposed hours are designed to coincide with the busiest morning trading hours in Japan. But Andrea Corcoran, chief of CFTC's division of trading and markets, said on Tuesday she expected the evening sessions to attract primarily U.S. Firms looking for additional overnight protection. Traders in Tokyo said the night sessions were expected to help expand U.S. Treasury bond trading volume and enlarge daily fluctuation ranges in Tokyo. They said Japanese financial institutions were very interested in using overseas futures markets, but were waiting for finance ministry approval to do so. Approval is expected before the end of the month. The foreign branches of financial institutions can already trade futures, but in practice make little use of them. But, traders said the timing of the launch was poor, as it is in a ten day period when Tokyo has three public holidays. The Tokyo traders said because of the holidays little interest in night trading could be expected until after May 5. Tokyo bond managers said also that participation could be limited by a lack of experienced futures traders in Tokyo. The Sydney Futures Exchange (SFE) hoped the four-hour trading overlap with the new CBT hours would boost activity in Sydney's eurodollar and U.S. Treasury bond contracts, spokesman Stephen Calder said. The eurodollar contracts are linked to the London International Financial Futures Exchange (LIFFE). Calder said turnover in both contracts had been disappointingly low since they were introduced last October. He said the CBT move would broaden arbitraging opportunities for SFE traders. "With a late evening lead from Chicago, there's also more chance that people will deal here in the afternoon," he said. But in Singapore news of the CBT move was not welcomed. A senior executive of a Japanese securities firm operating in Singapore told Reuters: "Expanding global links between futures markets mean that SIMEX must add Chicago and London and Sydney to its list of rivals." "LIFFE could cut further into the SIMEX contract, with a U.S treasury bond contract that can be off-set on the CBOT," the Singapore-based Japanese trader said. Such a contract is expected later this year, he said. Other SIMEX traders said local interest in the Sydney treasury bond contract might be boosted if the Sydney exchange established a three-way link with Chicago and London. LIFFE has signed a memorandum of understanding with CBOT for such a link. "If this link-up materializes, most traders are likely to by-pass SIMEX," said one trader. Hong Kong commodity traders welcomed the CFTC's decision, though they added that local investors would have been more interested in financial futures. "I think it is very good, because the move will help us to increase our market share here," said Joseph Tan, manager of <Bache Securities (HK) Ltd>. He said that Bache, like many other local units of U.S. Commodity houses, had been participating in Chicago's rregular hours of trading for a long time and would like to extend its business. Local Hong Kong houses also welcomed the move, but a spokesman for Shun Loong Co said investors would be more interested if stock index or currency futures were available. Futures contracts in the local Hang Seng index have become increasingly popular since they were introduced to the market in May 1986. (See ECRA for Spotlight Index) REUTER 

AIR MAURITIUS BUYS TWO BOEING 767-200'S

Air Mauritius has leased a second Boeing 747 SP jumbo jet and will take delivery of two Boeing 767-200 long-range airliners in 1988, the airline's general manager Tirvengadum told Reuters. The second-hand Boeing 747, which was acquired on a renewable one-year lease, made its first scheduled flight to Munich earlier this month, he told Reuters. Tirvengadum said the twin-engined Boeing 767-200's, costing a total of 130 mln dlrs, would be delivered in March and April next year. Tirvengadum said the new aircraft would enable Air Mauritius to expand its services to Europe, Australia and the Far East and phase out its two Boeing 707's. The airline will begin a weekly non-stop service to Geneva next June and hopes to obtain landing rights in Australia, he added. Tirvengadum said South African Airways, which currently flies to Australia via Mauritius, will be forced to give up the route in November as a result of Australian sanctions. REUTER 

JAPAN DETAILS PLAN TO STAVE OFF TRADE PROBLEMS

Japan's Liberal Democratic Party (LDP) has drawn up a detailed plan calling for large tax cuts and an increase in government purchases of foreign goods, the head of the committee working out the plan, Junichiro Koizumi, said. The plan will also urge the government to double 1985's official development assistance to 7.6 billion dlrs within five years instead of seven as the government had promised, senior LDP officials said at a press conference. LDP executive council chairman Shintaro Abe will explain the plan to U.S. Officials when he visits the U.S. On April 19. Abe's visit is to prepare for Prime Minister Yasuhiro Nakasone's talks with President Ronald Reagan later this month. Koizumi said the LDP plan will not specify the size of the tax cut or the amount of domestic demand to be stimulated. However, top LDP executives will work out figures so that Abe will be able to offer specifics to U.S. Officials. The proposed increase in procurement of foreign goods by the government will probably include the purchase of super computers, LDP officials said. According to the plan, Japan will also strive to solve specific trade problems with other nations and will encourage flows of funds to developing countries, the officials said. The LDP expects the measures to prop up the economy and lessen trade problems with the U.S., They added. The basic ideas of the LDP's plan were presented to and welcomed by monetary authorities of the major industrial nations in Washington last week, they said. The LDP plan will form the basis for the last of several packages to stimulate Japanese domestic demand and will be unveiled by the government in late May. REUTER 

BALDRIGE TO LAUNCH FAR EAST TRADE DRIVE

U.S. Commerce Secretary Malcolm Baldrige leaves on Saturday on a 10-day trip to the Far East to help spur U.S. Trade and improve business relations with China, South Korea and the Philippines, U.S. Officials say. Baldrige will also stop in Hong Kong to meet British officials and local U.S. And Hong Kong businessmen. The U.S. Last year had major deficits with three of its Asian trading partners -- South Korea 7.1 billion dlrs, Hong Kong 6.4 billion and China 2.1 billion. The deficit with the Philippines was 800 mln dlrs. Baldrige will meet South Korean President Chun Doo-hwan and Trade Minister Rha Woong Bae on Monday to discuss opening South Korean markets to more U.S. Goods. Baldrige will be in Peking from April 21 to 24. He will meet Zheng Tuobin, minister for foreign economic relations and trade, attend a meeting of the U.S.-China Joint Commission on Commerce and Trade and address a management and training organisation. However, U.S. Officials said a chief purpose of Baldrige's visit would be to discuss relaxed U.S. Rules for transferring modern technology to Chinese industries. In Hong Kong, Baldrige will hold meetings on April 27 with Governor David Wilson and Trade and Industry Secretary Eric Ho, as well as addressing the American Chamber of Commerce. U.S. Officials said Baldrige will meet Philippines President Corazon Aquino on April 28 to show continued U.S. Support for her government and to discuss steps it could take to improve the atmosphere for American investment. He will also will meet Finance Secretary Jaime Ongpin and Trade and Industry Secretary Jose Concepcion. REUTER 

1 KILLED IN SEIZURE OF CANADIAN MISSIONARIES' LAND

Soldiers killed one man and seriously wounded several others as they barred a group of landless peasants from 120 acres of land seized from Canadian missionaries in northern Haiti, a source at the Cap Haitien church radio said. The soldiers, acting yesterday on orders from the Haitian attorney general, had used tear gas and fired warning shots into the air prior to the shootings, the source said. There was no official confirmation of the report. Seven men who refused to leave the land were arrested after the shootings and would be tried, he said. The source said the peasants, who are illiterate, had heard that Article 36 of Haiti's new constitution, ratified by popular referendum on March 29, allows for land seizures. In fact, the constitution forbids land seizures except as part of a court-sanctioned agrarian reform process. The Canadian missionaries, the Sacred Heart Brothers, had bought the land from the state during the government of dictator Jean Claude Duvalier and had planted sugar cane on it, the source said. "...the peasants are starving to death," the source told Reuters, "and they saw that the Canadians were working a large fertile property." Reuter 

U.S. URGES JAPAN TO OPEN FARM MARKET FURTHER

U.S. Agriculture Secretary Richard Lyng has asked Japan to open its farm market further to help Washington cut its trade deficit and ease protectionist pressures, an Agriculture Ministry official told reporters. Hideo Maki, Director General of the ministry's Economic Affairs Bureau, quoted Lyng as telling Agriculture Minister Mutsuki Kato that the removal of import restrictions would help Japan as well as the United States. The meeting with Kato opened a 12-day visit to Japan by Lyng, who is here to dicuss farm trade. However, Maki quoted Kato as replying that Japan was already the world's largest grain importer. Kato added Japan is the largest customer for U.S. Grain and depended on domestic output for only 53 pct of its food requirements in 1985. Lyng said the U.S. Put high priority on talks on 12 farm products named in U.S. Complaints against Japan to the General Agreement on Tariffs and Trade (GATT) last year, as well as on beef, citrus products and rice. Kato said Japan will maintain its current level of self-sufficiency and will try not to produce surplus rice because potential production is higher than domestic demand. The world farm market suffers from surpluses because of rising production by exporting countries, he added. Lyng said the U.S. Has been trying to reduce farm product output with expensive programs, Maki said. Maki said the U.S. And Japan will hold detailed discussions on each trade item as well as a new round of GATT trade talks at a meeting on April 20, in which U.S. Trade Representative Clayton Yeutter will join. REUTER 

DOLLAR GENERAL <DOLR.O> MARCH SALES FALL

Dollar General Corp said sales for March fell 4.6 pct to 43.4 mln dlrs from 45.5 mln dlrs a year earlier, with same-store sales off 6.9 pct. The company said in March 1986, sales were helped by Easter shopping and a heavier schedule of promotions. Easter falls April 19 this year, and the company said unseasonably cold and snowy weather hampered March results this year. It said first quarter sales were up seven pct to 114.4 mln dlrs from 107.0 mln dlrs a year earlier. Reuter 

FEDERATED GUARANTY <FDGC.O> SETS STOCK SPLIT

Federated Guaranty corp said its board declared a two-for-one stock split and raised the quarterly dividend to 6-1/2 cts per share post-split from six cts, both payable June One, record May 15. The company said shareholders at the annual meeting approved an increase in authorized common shares to 19 mln from 10 mln and a name change to Alfa Corp. It said the name change should take effect next week, along with a NASDAQ ticker symbol change to <ALFA.O>. Reuter 

LITTLEFIELD ADAMS <LFA> MAY GET QUALIFIED AUDIT

Littlefield, Adams and Co said it is attempting to work out new financing arrangements with lender Congress Financial, and unless it receives an extension of its loan to at least year-end, it expects a qualified audit opinion on 1986 financial statements. The company said the revolving loan fell due at the end of February, and Congress has so far granted two one-month extensions. It said it has asked the Securities and Exchange Commission and American Stock Exchange for an extension in filing 1986 annual reports while it tries to work out the new funding. The company also said its Collegiate Pacific subsidiary has closed its Gardena, Calif., plant and leased the facility and equipment to a non-competing seller of printed wearables. It said it has licensed newly-formed Collegiate Pacific West to distribute Collegiate Pacific branded merchandise in 14 western states, western Canada and Japan. It said the leasing and licensing agreements should provide about 200,000 dlrs in revenues a year. Reuter 

REAGAN TO ANNOUNCE DECISION ON JAPAN SANCTIONS

President Reagan today is to announce a decision on tough new tariffs on Japanese exports to retaliate for what he calls Japan's failure to end its unfair practices in semiconductor trade. The 100 pct tariffs are to be imposed on 300 mln dlrs of Japanese goods recommended for curbs by a special panel of experts headed by the U.S. Trade Representative's Office. Reagan announced last March 27 he would impose the tariffs on certain goods taken from a list that ranged from computors and television sets to power tools and photographic film. The panel this week winnowed through the list of the some 20 products and sent their recommendations yesterday to Santa Barbara, where Reagan is vacationing. In his March annoucement, Reagan said "I am committed to full enforcement of our trade agreements designed to provide American industry with free and fair trade opportunities." He added the tariffs would be lifted once Japan honored the pact it signed last year to end dumping semiconductors in world markets and opened its home market to U.S. products. U.S. officials said Japan had done nothing since the March announcement to alter Reagan's plan to invoke the sanctions. White House spokesman Marlin Fitzwater said yesterday: "we do not want a trade war, but we feel that this is the kind of action that requires meaningful action." Reagan's move follows steadily rising U.S. trade deicits, with last year's hitting a record $169.8 billion. About one-third of the deficit is in trade with Japan. Congress is weighing a trade bill to force the president to retaliate in certain cases of unfair trade practices. He has opposed the legislation, saying it would prevent negotiated solutions to trade disputes and, in any case, that existing law was adqeuate to end unfair trade practices. Trade experts say his tough action against the Japanese was as much to penalize the Japanese as to show Congress he did not need any new trade legislation. The Japanese have complained that they have been honoring the semiconductor pact, but that it would take time before the results showed up. U.S. officials, however, have said their monitoring of Japanese semiconductor shipments to East Asian countries and Western Europe showed no letup in the dumping and that the Japanese home markets remained shut to American exports. Japan has said that if Reagan imposed the tariffs, it would file a complaint with the General Agreement on Tariff and Trade (GATT). It said hoped GATT would find the U.S. retaliation had violated the regulations of the global trading group and would approve compensation or Japanese retaliation. U.S. officials have said they did not think Japan would retaliate because it had too much to lose in any trade war with the United States. Reuter 

UNION PLANTERS CORP <UPCM.O> 1ST QTR NET

Shr 92 cts vs 1.16 dlrs Qtly div 10 cts vs 10 cts prior Net 5,700,000 vs 5,400,000 Avg shrs 6,100,000 vs 3,700,000 NOTE: Dividend pay May 15, record May One. Reuter 

UNION PLANTERS <UPCM.O> ACQUISITIONS APPROVED

Union Planters Corp said it has received regulatory approvals for its previously-announced acquisitions of Borc Financial Corp and First Citizens Bank of Hohenwald, and approval of its acquisition of Merchants State Holding Co is expected within 10 days. All are to be completed during the second quarter of 1987, it said. Reuter 

PIONEER SAVINGS BANK INC <PSBN.O> 2ND QTR NET

March 31 end Shr 65 cts vs 51 cts Net 1,016,738 vs 526,057 Avg shrs 1,561,774 vs 1,035,162 1st half Shr 1.31 dlrs vs 1.09 dlrs Net 2,050,911 vs 1,130,462 Avg shrs 1,561,643 vs 1,035,162 Reuter 

MANAGEMENT SCIENCE AMERICA INC <MSAI.O> 1ST QTR

Shr loss 29 cts vs loss two cts Net loss 5,168,000 vs loss 410,000 Revs 46.5 mln vs 29.4 mln Avg shrs 17.6 mln vs 17.1 mln NOTE: Net includes tax credits of 3,938,000 dlrs vs 394,000 dlrs. Reuter 

GENERAL HOUSEWARES CORP <GHW> 1ST QTR NET

Shr two cts vs one ct Net 42,000 vs 26,000 Sales 15.6 mln vs 15.2 mln NOTE: 1987 net includes gain 63,000 dlrs from change in pension accounting. Reuter 

OAKITE PRODUCTS INC <OKT> 1ST QTR NET

Shr 53 cts vs 48 cts Net 873,000 vs 773,000 Sales 19.5 mln vs 20.0 mln Reuter