FRANSPORTATION

ONE OF WORLD'S LONGEST SUPPLY LINES FEEDS

THE CHINA MAIL,

TUESDAY, JULY 29, 1958.

TARIFF WAR OR FREE TRADE?

Outlook For FTA In Europe Looks Better

CARAVELLE PRODUCTION The tariff war or Free Trade?

ONE of the world's longest supply lines--feeding into Toulouse, France from half a dozen countries-plays a vital role in the production of Scandinavian Airlines System's new Caravelle jet airliners.

Its

London, July 28.

That was the choice confronting the Maudling Committee of the Free Trade ministers when it met in Paris last week.

task; to find a formula for linking the 11 European countries led by Britain, with the Common Market of France, Germany, Italy, Belgium, Holland and Luxemberg.

SAS has ordered 12 of the One of two Caravelle proto- 510-milo-an-hour, medium-range types bullt for tests will undergo

Most observers were inclined In addition to the old prob- jels for delivery In 1939 and complete series of fatigue tesis: 1930. The airlie has an option in this tank later this year. to write of committee's efforia }lems—such as proof of righ

Other

incluits towards advance. The progresjot goods traded with the FTA, equipament on 13 more.

harmonisation of external Sud-Aviation, makers of the machines to lext brake efficiency, towards Free Trade Aren had the

Inari md en on-there is now Caravalle, plan to tura four of structural resistance and landing beer halted by the French

a country that the Jetliners off their Toulouse Rents under normni and emer-transigence. For

believe in from prute and fo asserably line a month. The Kerey cortillons.

France had been be Bratle number is expected to rise to!

ORGANISED

having in an ody protectionist soyen a month in two years, SPECIALISTS

Lines of supply from Sud-manner. Aviation factoring cisewhere in France, from other French Some 40 per cent of the manufacturers and from factories Curavelle's more than 5,000 in Italy, England,

the United separate parts are manufactured States, Switzerland, Sweden and

other countries

in Toulouse,

Tho factories cover an area of Toulouse. more than 90,000 square yards and employ 5,800 persons. Near-in" ly pall of these are engineers and technicians, Most of the workers

to

on

In the confusion of the past few months, any hope that the outstanding problems would be solved in time for a Free Trade

work begin in Area nierge

January 4 1050, when the Common Market countries are dia to make their first mutual por een taff reduetion, leur singo disappeared,

Lanufacture of Caravelle parts Gain of the Sud-Aviation factories has been organised v that each plant concentrates on had

are specialists with an average one speciality. of 13 years' experience.

in

the

Saint-Elot, which products_F wide assortment of parts. The

Bajni-Nazaire

Bouguenais Ressemdes

machinery includes more than centrs wing spay, 100 lathes, 72 ating inachines,

contractors:

20 grinders and 30 mechanical į SUB-CONTRACTORS

Tersed, Largest among the There are three principal sub- machine tools is an American Hufford 40 hydratilie preus, with special adjustable teeth. It is able to form sheets with a five- yard span.

Periously Real

become

n how one.

All along, the fear has been Marke: that the Common countries made their first mutual ariff reduction while the FTA was still struggling for birth, other Organisation for Euopean Economie Co-operation (OFEC) countries would be faced with

a serious situation,

Ori, t

Take Britain for instance.. One-seventh of all her exports go to the six countries in the Common Market, It these six raluced their tariff on imports from each other-forming in The Marignane plant, Bear

offeet, a new preferential trad- Biggest oireraf, manufacturer | Marseille, builds the five section

ing area-British exports to the Europe, Sud-Aviation has and forward part of the cylindri- Just before the Paris meeting, counties

would concerned plants in three major

ent fuselage, Some 200 workers economist Grahain Hulton overnight become uncompell- Toulouse nres, equipped with are engaged in this operation. Winner: The threat of Barotive and a large part of this more than 5.500 machine tools.

constructs The pean economic fission. arising valuable trade would be lost to They pre:

lending and trailing edges at the from the prior futon of the Franco and Germany, Hence

Jas ix, wing structure.

perticusly Britain's

impatience for an thereal."

ORTOCAEN!

Free Tie Arca this year. Hopes were not encouraged when the Mardling Committee,

However, though it is virtual- | archounced, even before it imposible for FTA to come talks had officially begun, that into effect simultaneously with of Toulouse, which it would meet again in Septem- the Common blarkel, the tariff Latecoere

to, section of the ber

"resolve the builds the rear

1st war now scenes unlikely. Hope qurtions of principle still under lies in the fact that no country fuselage

the member Western Europe wants it. La Boissiere, of Salal-Florent-discussion amon

Common which

countries."

the rotirnets the sur-Cher, rutldiers,

Market. Fiat of Turin,

So much for Mr builds the engine #nx. By special arrangement autumn deadline for an agree

But despite with the customs authorities of ment in principle. The goverrunent operated the two countries, trucks carrying this setback the outlook for an Etablissement Aeronautique deigs and machinery between the FTA now louka better than it The Toulouse (E.A.T.) supplements two factories are allowed to pass than for several monthe.

French, who had put forward the border without stopping. the Sud-Aviation Installations.

during proposals Testing equipment of this huge Other principal manufacturers Impossible

Caravelle parts include previous discussions and aerodynamic laboratory includes of several staff-designed machines Hispano-Suiza of France (land-caused all but the most optimis- that have no duplicate anywhere ing gear), Rolls-Royce of Eugte of a FTA to despair of ever

A. lund (R. 29 Avon Jet reaching an In the world,

Among the devices at E.A.T.engines), atid Lear, Bendix, appear to be more is an enormous water tank, one Research, Kollman and Sperry to the wider Free Trade con- that, for one reason or another, of four in existence (two ure in for the United States (instrument cept. Many problems still re-remained outside.

United the

in panel, navigation Instruments main, but these are now being

tackled realistically, and air codifieming).

Blagne, near the Toulouse Airport, which also manufactures

the Caravelle. parts for

The prototype shop is located here

LABORATORY

England).

Sintes,

one

Italy, which nacelles and

of

Maudling's

.

Logical Step

||

Motors And Coppers

Rise In New York

New York, July 28.

Paramount Pictuser

C. Co.

Fake Da Co

Automobile and copper shares lifted stocks to new highs for

nearly a year in reduced volume today. General Motors touched a new high on a fractional gain. Ford and Chrysler ran up more than o point each. American Motors was active but down slightly after last week's sharp rise. Fruehauf Trailer was active and firm.

HONGKONG

STOCK EXCHANGE

Our Own Correspondent

two

Copper issues registered the running to TITU than points. Special issues put on a good show with galny ranging la three points.

Pan Balb Co. Philip Morris Procter & Gamble Co. Pittsburgh Pinto Glass Pubicker Industries Pure Oil. # Corporation Radio Corp. Prot. Republic Steel

eynolds Melal

Shell Oil Co... Salat Res. Paper Sinchir all

Borony Mapliaji.

South Prio tico Super Bauthern Hallonat Gas... Houthern Itallway (Com.) Biancore Pranses Standard Oil of Cal. Standard of Ind. In Standard Oil of N...

Lorillard picked up strength near the closo, Smith, Kline & French was song in the drugs.

Strong spots appeare'g kutting Isuca,

gold tyres, electronics,

والري

Sleep Hork Proronto Exgr. sulphurs, Sieting Drug Co.

салгаа auto parts, stockings Stokely-Van Camp. and specialities in the stee! Sunshine Mining

section.

. Best Gains

The best gains were achieved

by the coppers.

They advanced Noon than two points the moming's

Ande

Busincs done on the Hong- | icon

this Stock Exchange

amounted to ap- morning proximately $370,000, quotations and transactions were;

Shares Buyers Bellera BANKS

Ki

XD .....

703

017071% 300 70745

INSURANCES Unton Lombard

70

20

SHUFFING Wheelock. 0.10 0.10 200

DOCKS, ETC.

Dock ... 41.73 Provident,

10) .....

LAND, ETC. ink Hotel

Land Humphrey's Henlly,

1334

BOO G

one to more

10

as the House Interior Committee approved

minerals mitsky $100 millon programme dealgned courage tinmestic production and protect US miners lower cast imports.

New

Svidebaker-Packard Corp.

Swift & Co.

Texas Co.

Textran the.

Tide Water A1n. Dil

Tel-Cont. Warrants

Twentieth Century Fox Film

Union Carbide

Union On of Cal.

Union Pacific Railway

United Atremft

U.S. Foll"

CHATTER ON WALL STREET

New York. July 28. Stocks have a tendency to gather an Increased fol. lowing as prices move ahead. This has been providing the power which has stimulated the upward trend and there seems little likelihood of It diminishing here --- Van Alstyne, Nocl & Co. Although there may be some proat-taking corrections ahead, there is still no clear-cut 53% evidence that any major pattern of distribution is taking place 201 20% at these levels, The marke; is 3 still in a good position to close

the suminer

on a strong and 314 hopeful note.

04/

כטר

NO

40

54

511

40

11

143

LIQUIDATION

A period of moderate Equida- 401 tion would not necessarily 40rndanger the technical pattorn

of the price structure, since the Dow-Junes industrial average is now some 17 points above the upward trend line which has boen forged by the forward 20moyment of the past four Bimonths. Thus there is enough

leoway to allow for periods of 2415 profit-taking without

reversing

the primary upward progression

71%

12

251,

– Baeho i củ

231%

The

Smith Barney &

Co.

31

Ethical Drug Index rose 3.9 per

100%

16%

J

07

per cent in June while general

£4

The

'cent and its chemical Index 3.1

34% cent.

market gained 2.7 per

Bank carnings and dividends are once more reasserting their 30% traditional slability durinn?

periods of considerabile mle dislocation... investment results of are and casualty in- Surplice companies are very encouraging Value Linc. -- U.P.I.

U.S. Gypsum

U.S. Line Co.

en-

U.B. Rubber

US. Smeling

from

15. Steel.......................

70

U.S. Stoel 7 P.C. VF Warner Bros.

153

20%

Westinghouse Air Brake

in Westinghouse, Electric

Wert Va, Pulp & Papor Woolworth

40

highs uppeared Anaconda, Kennecott, Cerro de Blo Pasco, Miłami, Hudson

Copper Range. 5.10 Magma Copper rose more than 6.10 two points, Aluminium Isten

held steady to firm.

Mining and

13 11,00 22 0 3000 3

32 22.10

321

1000 p

15.00

American Maters was. a. feature ol activity. It fell back slightly after a wide rise last week on a rise in ramnings, 321 General Moom reached a new high and Chrysler at its best was up

points. more than

Fruehauf orve. Foni rose Trailer, among the most active lasues, made a new high.

1.40 1,50 3000 + 145

was

RUDDEN Amnig

1.50 1.3731⁄2 32000 or 1.5735 50000 & 1.57}} 45 1000 se 13.004

Trust A. Tawah.

Sungata,

UTILITIES

Market The Common originally conceived us in logical step in post-war movement to- wards economic co-operation in Europe. Some countries could not go

.... 20.00 1000 the way and join the Train

Ferry 113 for Star Common Market. Britain

Yaung.. example has her Commonwealth C. Light

A (0) 171 17.00 responsibilities to consider.

Telephone Free Trade Area was proposed agreement. now by Britain to link the Common with those countries amenable Market

COMMODITY PRICES

SUCAR

New Yolk, July 20. World No. 4 sugar futures to- two day closed unchanged to

251 points lower on sales of contracts.

Domestic No 6 sugar futures finished off one point on sales of 15 contracts.

Contract No 4 (world)

:

Sept: 332 Oct: 1; Mar: May J3 July: 3.40; Sept: un- quoted; Des: unquoted.

Spot price 100 cents per pound fob Culki, off i poļāts. Open In- tert a contracts off 15 potats.

Contract No 6 (domestic)

Sept: 4,776: Nov: 177b; Mar: 5,386. Spot price per lb. cif NY ex-dyty 8.75 cents unchanged, Open, In- tearat 2,18 contracts us —UPI

COTTON

NEW YORK

Prices of collon fulures closed

today as follows:

Spal: 30.50ncan; Oct:, 30.09-201 Dai: 50:41.00 Mar: 36.0

33.70-.00;

30-70-D3; July:

3,40-21; Dec: 33.88.

NEW ORLEANS

SAO PAULO

Priers of colton futures closed today as follows:

Ang guested; Del 11,20: 47.20; Muri sunquoted; May: 47.00: July: 47.90

had

steady. Prices of metals closed in sterling per long tons follows:

Syut a-n. In The

Slates the| Klepper United

Spat one-inch cot. average price of

3-mantly ton at 14 designated spot nur Lead and hair kels was not available.

July

Total sales at these 13 arar- keis: 10,059 bales.-U.P.I.

RUBBER

NEW YORK

Rex rubber futures today closed 18 to 30 points lower. Prices closed as follows:

July: 27.5ob: Sept: 21.430; Nov: 27.20b; 27.13: Jan: 2750 Mar: May: 21.106 Jely: 22.00.

BINGAPORE

Closing rubber prices:

No. 1 rubber per 16 Aug. BO!%-80

Sept, 80-801

No. 2 rubber per ib. Au 702-

No. 3

N... 4

Spot unbal

Blanket crepe

797-20 02-04

00-$2

LONDON

No. 1 pale crepe

May:

ཙྪཱ

OM:

Prices of cotton futures closed

today as follows:

The rubber market closed cany with spot quoted at 23 pence per

Prices:

Zine gad half

Buyers Sellers

73344 732 7:30 7:00

on

If it succeeds, the countries of Western Europe, will in time abolish all import duties goods traded between thein and zo the argument goes, enjoy the benefits of mass marketing specialition and so forth. But if it fails, all the carefully built up structure of economic co- have been Su operation would much wasled effort.

INDUSTRIALS

000

0.70

13

20$

New York Stock Exchange Bond Volume: $5,410,000

American Stock Exchange volume: 1,110,000 shareS

New York Sock Exchange

-05

15.00 volume: 3,040,000 shares Of a total of 1,227

300 G 200 * 17,70

izues

25 000 25.90 traded 610 were higher while

370 declined.

Cement 27.00 23 200 ₫ 22.00 STORES, ETC. Dalry

Closing Prices

12.40 173%

130 $7.00

431017

500

17

Alden Ine, Acy.

Waseca...

1300 11 Lane, Craw. 13.00 10 COTTONS Nanyang..

INVESTMENTS Allied

2,070

4.5715

Allied Chemicals

500 e 13.0f Allied Alle Inc.

Prices Back

Down

In London

Problems abound, but the will to solve them is there now that France has decided at best to tare up to the inevitable. The other Πνε Common Market countries have persuaded France to adupi a less obstructive of-

London, July 28. together they have The stock market eased at titude and 201 204 2041% now expressed their willingness

the close today as prices to discuss u "standby" arrange-

backed down from their 703% 71

mant to soiton the beginning of a 124 734

Common Market-probably by

early firm position.. 64% extending the ten per cent tari

Gilt-edged cocurities cut scheduled by the Common lower but losses Markel Treaty for January, 11/10 or 4. next to all members of OEFT.

65

Allis Chalmers

Am. Brake Shoe American Airline

Am. Cable & Radle Corp

American Cyunanld C. Amer. & Folgn. Power Am. Hans Proel. Am. Mach. & dry. American Metal American Smelting Am. Bugar Ref. American Tel American Tob, "1" Anaconda Copper Armen Slee Annour

Tel

Alloy Cang. Many Baldwin Lina-Ham. Baltimore DES Bendix Aviation Corp. Benguet Cons natlichem Steel

losing Airpione Borden (the) Co....... Burroughe Add Machine Call. Packing Corp. Canadian Pacie R. Cure (J. 1.1 Co drifted ca. Tractor ...... were held to Celanese Corp

C.I.T. Financist.Corp. Chrysler Motary Traders showed le or coluett Peabody

Meanwhile, the Free Trade nest in oils and prices de- Colgate-Paintolive Cu. will be Canadian Eagle. which met

clincl. Опе

July

Oc

NEW YORK

Prices of metal futures closed today in cents per lb as follows:

Lead

July

10.24b

Sept.

10.316

Europe movement in discussed at the Commonwealth Economic Conference in

Zine

July

8.65

Sept.

6,87

Moni- real in October, One of the

support

Copper July

25.REL

Tin (standard)

Sept.

July

20.036

Sept.

Ti (status)

July Sept.

05.374 $5.002 --U.P.I.

exception

Waa Commercial Credit

Commonweath Elec. Consolidated Edison Continental Off of Del. Crown Zellerbach Cuban Amer. Sugar Diamond Alkat Diampre Match Co. Dupont de Nemon. Dow Chemicals Eastern Airline Kalman Kodak jugak

THE UNDERTONE Though the undertone of it things the ministers will have ustrials was satisfactory, husi- to consider 15 the growing

agitation in Europe for the ex-ness was stans and prices often unquoted tension of Imperial Preference cased after a firm opening. uinquoted

tà all FTA countries.

FOREIGN EXCHANGE

LONDON Closing rates were:

New York

Atintregi Amsterdans

No. 1 No apot mo. 521% 231% Copenhagen

Spot: 35.10: Oct: 30.15h; Dec: | Oct/Dec. 30.46: Mar: 36.03: May: 30.08) July: 35.99 Oct: 33.62.

LIVERPOOL

Coiton futuro clonings penco per ib. were as follows:

American Contract

July/Aug

OCVNDV.

Dpa/Jan. Mar/Apr. May/June -July/Aug. Mixed Contract

July/Aug DOVNOV: Dec/lan Mar/Apr. May/Juns July/Aug.

General markets, cit hools, ports:

ف اليون

2.00-7/10-200-9/10 2.001-2.00 10530-10.00 10,2034-1933 1107-1187%

040-00.00

Advantage

Some European

countries.

Foreign bonds and rafts were idle. Daliar stocks were higher Ein nagponse to the strong per-

formatice of Wall Stree: Friday. Gold

shares исто notably France-tem that Bri-coppern cased,——U.R.I,

Lain will have an unfato ad- vantage in a Free Trade Abed because of her special trading connections with the Common- wealth raw material producing Imperial countries. Under the Preference, Britain allows ali Commonwealth

materials duty-free entry. In return her exports of manufrelered goods enjoy preferential #tiff treat ment in Commonwealth markets.

raw

France points out that many- factures containing duty-fro¢ saw materials would compela and Vienna un fairly against similar domestle

12.19-1920

Settlement House terms:

Frankfurt

Auk. hight

Jan Mor Aprilume

221%

23

23

2011

23

23

£315

73

Liabott Dillan

stockholm Zurich

Brussels

AUG

22 23

changed,

Sept

23

in

Estate crepe thin

NEW YORK

Aug

geht

thick Aug.

Sent.

88395

20% pellere

Fellers

251% millera

quoted

U.P.I.

سئلة

products. In the Free Trade Area. So, to compensate for this

011

Paso National Gas Funty Finance Corp. Ford Motor ..... General Electric General Food

General Motors

firm but gen. Fud. Uig.

Exchange Rates

Gen. Tyre & fubber Getly Dr.

Gdden Co

Linoortel B. FI Co. Goodycar Тупа Grumman Airerat <list Cl

Heyden Newport Corp. Homestake Aining Co. Ingersoll-Rarid

Buinem was done In the local unofficial exchange marketi

Inland Rupel Co morning at the following rates:

Talershemical Cora.... 512 U.. dollar (per #1)***

16,00

Lot Business Machines sterling notes (per gi)

12.05 Int Harvester Australian notes (por £1 Indonesian rupian (per 100) 8.00 International Nickel Blantica (per 100) Singapore (Strattal

20.00

1.50

Market Insurance

International Paper

Tel 4 Tol Jahn-Manville Co. Hailer Industry Kansas C. Hower & Light Kennecots 'Copper Liggett Moyers Tob. Co. Lockheed Aircraft Loows incorp. London, July 201. Lone Star Cement Co.

Lowenstein & Bonl The Lloyds Insurance mariset Foreign exchange rates In they have demanded a share of has made corsiderably loss pront cab Iron Cup. Minnesota Mining preferentiat US Juilure or cento per unit:

treatment that the in its last three-year' accounting Minion Development 220-9/199

British exports enjoy hi Com-period, the Financial Times re-ansator Chemical: Cu

Mondamnery Warst ported today.

Megurola Inc. 110-1140 Wealth markots.

The Inquential fnpeytal news-aftedal Discut Co. પ 1714/10 If anything oun be certain in paper sald marine, aviation and Nano Coult a "A" Sod-10/10 - this confused altaation, it is that fransit

insurers suffered the Nous Dairy Prod. Na Corp. the Contmonwealth Finance biggest fail in proits ---U.P.I. National

England

ரம்

day futai 90-day futures

** 2.00

Autralia

Now Zaland Bouth Africa

Holland

Indila

Pakistan

Other unchanged,

ZURICH

METALS

tim

LONDON

London, July 24.

market cloped

Closing rator In franco;

Dollar

Egyptian pounds

The

2109

100

Milators will want to know a

lot more about the form Use

DAD

Free Trade Area will take be-Agreed Merchant Rates

fore they givo; their bleasing to

mach a revolutionary proposal.— Express Serviço.

Bwins

Selling 16.

New York Kental

petcils & Wottern Rv. Clin Mathicon Milk Clevelars Owen linowe Gloni Maximum Oxford Paper

Paglile Gas & loc. Pan American Airways

+

econo-

P2O B·IE&A

COMPANIES

PASSENGER/Freight servICE

PENINSULAR & ORIENTAL S.N. CO.

Outward *CANTON" *KUYBER"

101

"BUBAT"

"CORFU “KARMALA” "CARTHAGE”.

*Ifamewards "CANTON" "SOUDAN" *

"CORFU" "SURAT""* "CARTHAGE"

Loves London Saied 21/ Balled 20/0 Balked 7/7

341h Jury

15th July

20th

August

Due HongODE 131 Port

19th August 18th August 23th Aug.

3rd September

22nd September

1st September

Leaves Hongkong But London

1st August

16th August'

29th August

25 September 20th September

171 September 23n1 October 24th September 27th October

Via 'paro. Tenang, Colombo, Bombay, Aden & PL. Baio.

S'wel.

* "SOUDAN” 106 "SUBAT" ' call 'poir,

Penang. Aden, 1 Bald, nyre, London, Hamburk,

* Rotterdam & Antwerp,

2231

"ORDIA"

"OLINDA"

BRITISH INDIA S.N. CO., LTD.

due 4th Aug. Kallo 0th Aug.

"BANTHIA" due 10th Aug. falle 13th Aug.

due 12th Au

salls 13th Aug-

proza Japan

to Bingapore, Penang, FANEDOR. Cetcutia, Ch:}1* tagong & Chaina

from Calcutta, Rangoon, Penang & Singapore ¡or Japan

CUMLA- gong, Chaina, Rangoon & Singapore

from Calculin.

for Shanghai & Japan

P. & O./B. I. JOINT SERVICE

dus 40 Aug. "OZARDA"

Balls 3th Aug. dije. Pih Aug. alls 2001 Aug

from Karachi Bombay. Cochin, Tustourin Penang & Singapore for Jagri

from Japan for Singapore, Kuwait, Basrah, Khorramshahr, Dubai Karachi

4314

"UMABIA"

EASTERN & AUSTRALIAN 5.5. CO., LTD.

*EASTERN"

frem Japan & Changhai all 13th Aug. for, Labuan, Sandakan, Brisbane, Sydney, Mel- bourne Be Adelaida

from_ Actetražia "ARAFURA" due 2nd Aug.

Halle Hih Aug. (of Japan

aŭ vesagio bave Uberty to call at any parts on

up of the route & iin jogte & valiigas are syblock to change or amendment with or without notice.

Teu fali jinrticulars apply to a

MACKINNON. MACKENZIE, & CO. OF HONG KONG LTD Telephone Nos: 271914.

*

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