THE DAILY YOMIURI

第三種郵票物證

Business—Overseas

## business briefs

### Milken In Halfway House

LOS ANGELES (AFP-Jiji)—Junk bond king Michael Milken has been released to a halfway house just 22 months after he was sentenced to 10 years in prison for securities fraud.

Milken, who was released Sunday from a federal prison work camp, had his sentence reduced to two years after he cooperated with investigations into the insider trading scandal which financed the corporate takeover boom of the 1980s.

"I obviously have seen great changes in my life, and as this next chapter begins, I will do my best to make a worthwhile contribution to the community," Milken said in a statement Monday.

U.S. prosecutors first went after Milken in 1986 when inside trader Ivan Boesky fingered him for fraud, but later they praised him for cooperating with their investigations.

The former Drexel Burnham Lambert financier will stay in a halfway house in Los Angeles until March 2 and will be allowed to leave every day for work.

### Custom Agents Idled

PARIS (AP)—Labor leaders Monday demanded the government find work locally for 4,000 customs agents likely to be transferred or lose their jobs now that Europe's single market has ended border inspections.

The CFDT labor union told a news conference that such transfers would mean hardship for the agents who live along France's borders, in Paris and Lyon.

The CFDT's secretary general for customs workers demanded that the Finance Ministry give them administrative positions in the areas where they live.

Most tariff and other customs barriers fell Jan. 1 between the 12 member-nations of the European Community, establishing a single market to better compete with the United States and Japan.

### O&Y Transfers Building

TORONTO (Reuter)—Troubled Olympia & York Developments Ltd. has transferred ownership of one of its prime Canadian properties, Aetna Canada Center, to Prudential Insurance Co. of America.

The 28-story Aetna Canada office tower in downtown Toronto is the first Canadian building the property developer has lost since it sought bankruptcy court protection from creditors last May.

"It's gone, the title's been transferred," Frank Ternan, an O&Y spokesman, said Monday.

### Toy Store Sales Skyrocket

NEW YORK (Reuter)—Santa Claus was very good to Toys "R" Us Inc., the nation's largest kiddie retailer, which said Monday its sales for the holiday season rose 18.5 percent.

Benefiting from an overall retailing boomlet and a convenient loss of its chief competitor, Toys "R" Us brought in $2.97 billion in the eight

### McDonald's Introduces Meatless Burger

AMSTERDAM (Reuter)—McDonald's Corp., the fast-food giant that built a worldwide reputation on the hamburger, launched its first meatless burger Monday to cheers from vegetarians and animal rights campaigners.

The "veggie burger"—made of potatoes, peas, sweetcorn, carrots, onion and spices—went on sale at 84 Dutch restaurants following satisfactory test marketing that began less than a month ago, a McDonald's spokeswoman said.

The Oak Brook, Ill.-based company has said the new burger, which took two years to develop, is expected to provide an alternative to the Big Mac and Quarter Pounder.

At 4.75 Dutch gilders ($2.60), including a cottage cheese and chive dressing, it costs slightly less than a Big Mac.

"It could use more soy, but I like it," said vegetarian U.S. pop singer Chrissie Hynde at an Amsterdam branch of the fast-food chain.

Hynde, who once said she wanted to bomb McDonald's because of the animals it was responsible for killing, said she hoped the beefless burger would catch on worldwide.

"Billions served still means billions slaughtered, but I'm thrilled they're taking the first step. The next step is to bring McVeggies to America," she said.

The burger has been approved by McDonald's in the United States and could go on sale in other countries if it proves a hit with Dutch consumers.

But the company has downplayed

Associated Press

Rock singer Chrissie Hynde holds a new vegetarian hamburger as animal rights activist Dan Mathews uncorks champagne at a McDonald's in Amsterdam Monday.

the importance of meatless burgers in the U.S. market, saying when Dutch test-marketing began last month that new products are tested constantly at 13,000 restaurants in 63 countries.

Food industry analysts also have proved unenthusiastic about the veg-

gie burger's chances of succeeding in the giant U.S. market, asserting that people do not generally go to McDonald's for low-cholesterol meals.

McDonald's stock was little changed Monday on the New York Stock Exchange, rising just 12.5 cents to $48.875 a share.

## U.S. Economy

## Brightens; Construction Spending

WASHINGTON (AP)—U.S. construction spending rose in November to the highest level in two years, the U.S. government reported Monday.

Meanwhile, a survey released Monday of mid-sized companies also pointed to a slowly improving U.S. economy during the January-March quarter, compared to the previous three months.

The U.S. Commerce Department said spending on residential, nonresidential and government construction jumped 2.1 percent to $441.8 billion, up from $432.8 billion in October.

"I would expect the residential numbers will continue to climb modestly as the housing market continues to strengthen," said David Berson, an

economist with the Federal National Mortgage Association.

"But some sectors such as apartments and office buildings are likely to remain weak for a while because of high vacancy rates," he added.

In the economic survey, members of the American Business Conference predicted modest improvements in key business indicators including sales and investment, but only 9 percent of the companies planned to expand employment.

"Our companies are telling us that in the current economic environment, business success means keeping margins razor thin while emphasizing productivity gains among the existing workforce," explained Barry Rogstad,

the conference president.

November's construction spending represented the third straight increase and hit the highest level since it reached $443.3 billion in August 1990. But the department revised its preliminary estimate of a 1 percent gain in October to just 0.8 percent.

Residential outlays increased 1.4 percent in November, to $193.5 billion, after gaining 2.4 percent a month earlier. It was the fourth straight advance.

Spending on single-family homes jumped 3.1 percent, to $126.5 billion, nearly matching a 3.3 percent advance in October.

But spending on apartments dropped 4.8 percent, to $11.8 billion, after sliding 1.6 percent the previous

## Northwest To Lay Off 1,000

MINNEAPOLIS, Minn. (AP)—Northwest Airlines has started sending layoff notices to more than 1,000 workers, the company said Monday, one day before a scheduled meeting with its unions.

The latest job cuts by the financially struggling carrier include 780 flight attendants, 35 full-time and 140 part-

worth $3.5 billion and delayed delivery of 44 Boeing jets worth $2.7 billion.

Don Mayer, spokesman for the local Machinists union, said the layoffs were a surprise. The Machinists represent about 25,000 Northwest workers, including ground personnel and reservation agents.

Teamsters Union President Ron

World Bank: Sweden Life Expe

WASHINGTON (AP)—The Swiss are the world's top wage earners and Japanese babies born in 1991 can expect to live the longest, according to the World Bank.

The bank's 25th annual report says

THE DAILY YOMIURI

第三種郵便物認証

Business

# U.S., Japan Expected To Propose Tighter Arms Control Guidelines

Japan and the United States are to propose that the industrialized nations jointly establish a new international organization aimed at preventing the export of nuclear arms and other weapons of mass destruction to developing countries, government sources said Wednesday.

The two countries will present the proposal at meeting to be held on Jan. 19 in Bonn of delegates from the Group of Seven industrialized countries in preparation for the Tokyo summit later this year, the sources said.

The two countries are said to be planning to let the new organization control the flow of weapons of mass destruction, including missiles and biological and chemical weapons.

The sources said the body would serve as a substitute for the Paris-based Coordinating Committee for

Export Control (COCOM), which is expected to be dissolved as a result of the end of the Cold War.

At the Bonn meeting, the two countries will propose that the Group of Seven set guidelines under which the new international organization would control the flow of weapons to the Third World—a role that COCOM is unable to play, according to the sources.

The two countries will make a similar proposal at the United Nations to ask advanced countries that are not members of the Group of Seven, such as Russia and China, to join the new international organization, said the sources.

Advanced countries have already started working out separate sets of international rules covering the export of three types of weapons of mass destruction—nuclear arms, missiles,

Recently, however, some of the advanced countries determined that there was a need to set up uniform guidelines that would apply equally to the export of all three types of weapons, according to the sources.

The sources also revealed that the Group of Seven had agreed to jointly restrict exports of all conventional weapons, including tanks and heavy artillery, to four countries—Iran, Iraq, Syria and North Korea.

At the Bonn meeting, the Group of Seven delegates will discuss the possibility of further expanding the export controls, they said.

The United States and Germany have already submitted new proposals for considerably expanding export controls, and Japan will shortly follow suit, the sources said.

The Makuhari urban development project fall of the bubble economy has forced some ambitious plan.

# Russia Asks For Help To Convert Industry

An organization representing a number of large Russian companies has produced a list of 142 cases where Russian military production and technology could be converted to civilian purposes with Japanese help, trade sources said Tuesday.

The list of technologies and industries with potential civilian applications was submitted by Arkady Volsky, chairman of the Union of Industries and Entrepreneurs, to the Japan-Russia Business Cooperation Committee when Volsky visited Japan in mid-December.

The list covers technology used in the Mir space station, radar and laser application technology, as well as a

satellite navigation system for ships.

The list is the first to concentrate on military companies that hope to convert to civilian production.

The list covers four areas: joint research and development, sales of technology, introduction of technology and production facilities, and joint production.

It contains 105 potential joint research and development projects that include applied laser technology, visual effects technology that Russia acquired and developed through intelligence activities using military satellites and satellite navigation systems research. It also includes projects designed to develop micro-fine-powder metals and single-crystal silicon tech-

nology indispensable to the next generation of semiconductors.

Twenty-three of the suggested joint projects involve the production of vacuum cleaners, personal computers, high-definition television, facsimile machines, magnetic tape for VCRs and the assembly of satellite broadcast receivers.

Volsky, a former official in the Russian military-industrial complex, believes that military-to-civilian conversion is necessary to restructure the country's economy, said the sources.

However, the list does not contain the names and addresses of Russian companies prepared to join in the projects.

## Chiba's Makuhari In Post-Bubble

During the bubble economy, urban development planners of the Chiba prefectural government had no doubt about the viability of an ambitious Y3 trillion plan to open a major complex of convention, exhibition, shopping and hotel facilities in Makuhari.

They originally estimated that there would be 100,000 employees working in Makuhari Messe and its adjacent areas by now. But the futuristic urban zone now has only 20,000.

The collapse of the bubble economy triggered a vicious circle of decline in the number of companies investing in the area, a decrease in employment and doubts about profitability, which trigger a fresh round of investment contraction.

Alarmed by the withdrawal of some leading companies from the project, a leader of the local business community

# Paper, Pulp Makers Welcome Crown Prince's Engagement

Kyodo News Service

Paper and pulp companies Wednesday welcomed the news that Crown Price Naruhito has picked a bride, and are elated with expectations that the likely media frenzy will boost demand for their products.

"This is really good news," said an official of Oji Paper Co. "This will undoubtedly provide a boost to our business."

The news came as the paper industry, like most business sectors, has been plagued by sluggish demand and falling markets during the worst economic downturn in two decades.

The paper industry experienced a windfall upswing in demand when Emperor Showa died in January 1989 and the Gulf War broke out in January 1991 because of greater demand for magazines and newspapers.

This time, however, the demand-stimulating effects are expected to be larger because the royal wedding will be later up the demand for paper not only directly due to a flood of publications but also indirectly by enlivening

overall business activities.

Paper and pulp production, 28 million metric tons annually, has been on a steady decline since the economy started slowing nearly two years ago.

"We pray that the news will trigger an economic upturn," the Oji Paper official said.

Meanwhile, Gaishi Hiraiwa, chairman of the Federation of Economic Organizations (Keidanren), said; "This is the good news every Japanese has been looking for."

"No other news could make me as happy. I'm really pleased to hear bright news like this now that we have just welcomed the new year," said Masaru Hayami, chief of the Japan Association of Corporate Executives (Keizai Doyukai).

"The Japanese people have been praying for the marriage of the crown prince. As a Japanese, I'd sincerely like to congratulate him and pray for the continuous prosperity of the Imperial Family," said Takeshi Nagano, head of the Japan Federation of Employers' Associations (Nikkeiren).

# Toyota Motor Aims At 30%

Toyota Motor Corp. will try to increase its share of the Asian vehicle market outside Japan—the world's fastest growing—from about 20 percent to 30 percent by the end of the century by developing an "Asia Car" exclusively for that region, company officials said Wednesday.

Modifying its current marketing strategy that places importance on the United States and West European markets, Toyota will make a major thrust into Asia where vehicle sales have soared nearly three times over the past five years, they said.

# VCR Production Plunges In Nov.

November production of videocassette recorders for home use plunged 31.4 percent from a year earlier, to 1.47 million units, and domestic shipments of VCRs fell 19.9 percent, to 419,000 units, the Electronics Industries Association of Japan reported Tuesday.

Inventory stocks decreased 25.6 percent to 1.51 million units, but an association official said that inventory levels still remain high.

The association reported that November production of color televisions fell 15.5 percent, to 1.06 million units.

In Asia, excluding Japan, the number of vehicles in use is forecast to surpass 100 million in the year 2000, matching the volume of the United States and Europe.

"The Asia Car" will be a sedan with engine displacement of about 1,500cc, according to the company's strategy. The proposed model should be less costly and capable of meeting environmental preservation standards of various countries in the region.

To launch the new car economically, Toyota plans to use standardized components so that plants in the region

NEW YORK (AP)—The New York stock market settled mostly mixed in heavy trading Tuesday.

Prices opened on a weak note and then spent much of the session flirting with positive territory. Activity was moderate until the final few hours of trading, when the pace picked up considerably.

While the overall market appeared directionless, some groups of stocks swung broadly in price.

Drug issues, for example, were hit particu-

<table><tr><td>AMR</td><td>66%</td><td>BankTr</td><td>69%</td><td>Chryslr</td><td>33%</td></tr><tr><td>ASA Ltd.</td><td>31</td><td>BauschL</td><td>53%</td><td>Citicorp</td><td>23%</td></tr><tr><td>AbtLab</td><td>29%</td><td>BengtB</td><td>29%</td><td>Coastal</td><td>27%</td></tr><tr><td>AetnL</td><td>46%</td><td>BethStl</td><td>15%</td><td>CocaCl</td><td>18%</td></tr><tr><td>Alcan</td><td>18%</td><td>BlackD</td><td>18%</td><td>ColgPal</td><td>16%</td></tr><tr><td>AidSgnl</td><td>59%</td><td>Boeing</td><td>40</td><td>vjColGs</td><td>21%</td></tr><tr><td>Alcoa</td><td>73%</td><td>BoiseC</td><td>21%</td><td>CmwE</td><td>21%</td></tr><tr><td>Amax</td><td>16%</td><td>Borden</td><td>28%</td><td>Comet</td><td>21%</td></tr></table>

Dec. Postal Savings Show Big Gain