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THE CHINA MAIL, MONDAY, JULY 3, · 1001.

Weekly survey of American economy

SCIENC

VITAL RACE FOR U.S. INDEHUM

New plans may OIL STOCKS WALL STREET TEXTILES

bear heavily on economic life

New York, July 2.

President Kennedy has dismissed as un- realistic Premior Khrushchov's repeated boasting that Soviet Russia will outpro- duce the United States by 1970. Just the same, these constant boasts are beginning to convince a growing segment of U.S. indus- trialists and economic planners that this -“worn-out runner" indeed is engaged in a vital

race.

and

FALL ON LONDON EXCHANGE

London, July 2 The Kuwait crisis sparked by Iraq's bid to annox the oll kingdom 03 tho Persian Gulf caused a

oil

last section worst week. Oil leaders ait fell back with

British Petrolcun Shell and taking the beaviest knocks. Shell dipped 8/0 to 121/0 and R. P. went to 45/9, which was ex- 2/3 lower,

And while quietly correeling | automobile industry are Mr Khrushchev's forecast, Pre-periencing persistent difficulties sident Kennedy announced tie dun to over-capacity risini! administration's

of labour costs Intention

suft foreign taking a series of economic mtu- competition. cures that may bear heavily on the country's future economic

Steel production, for example, fell for the fourth life.

straight lime last week because of the usual summer slowdown. Out- put new in about 70 per cent of mill capacity,

This is 20 per cent above the recession level, but many experts consider it still a bit too low.

CAR SALES "

the To blue chips suffered

malaise but eked cut general fractional gains from miti-weekt. Over the period losses in the top quality rector ranged between one and two shillings, although Rolls Royce stayed on higher

ground

scored and 1170 to improve to 40 shillings.

with Im- Courtaulds sank perial Chemienl, Lancashire Cotton and Unilever.

In stores, Woolworths ended 9 pence down on the week at 64/0. British-American Tobacco were unchanged.

What these proposals will be is yel to be rpelled out. For the time being, the President is busy enough trying to salvage the multi-billion-dollar legislative programme he initiated a post- inauguration days to give the U.S. economy a shot in the arm.

The trel industry's major A number of political factors

Steels, engineering, textile, have combined to slow down ouljet, the powerful automobile plastic and electrical stocks all Congressional action on Mr Ken- industry, however, is predict-aurrendered ground, but motors, nedy's ambitious bills, such as in a real boom in the sale of aircraft, property and tobacco

1001 models, the $4,000

Present counters stayed on a more even million foreign aldnew

for 6.5 million kectUPL bill, the proposal empowering estimates are the President to draw 60,000 units by the end of the year-- thm Last million from the Treasury over 100,000 cars less the next five years without Con- year, but about a million cars

more than in 1950. gressional authorisation and the $11,000 mililon school aid pro- gramme.

The delays also have been caused by pessimistic forecasts that the 10-month recession. proclaimed offcially terminated last March, is rather giving way to a healthy spell of economie expansion.

BOLD PREDICTION

The administration tatt has just jolped in with the bold pre- dletion that the gross national product will keep Increasing $10,000 million a quarter at least to the end of 1062. According

will rise

na-

from

MARKET

DECLINES

Now York, July 2.

For Wall Stroot observers this past week the stock market was in a dooponing rut where seven voluble analysts had almost nothing loft to say,

WEEKLY

REVIEW

New York, July 2. Trading in cotton gray goods was slow and prices wore caslar as a result of heavyweight solo offer- ings. Most mills will be closed this wook for the annual vacation. Demand for dyed cotton yarn was active and spinntre are running as much as a week Inte Ar deliveries, Most cf 110

can be traced to the

X7 paves way

to travel

in space

Sunnyvalo, Calif. When the first multi-manned spacecraft glides back to earth and the initial 2,000-mile an hour transport plane takes to the sky, à vital part of the road to success will have boon mapped out in advance by a Lockheed X-7 test missilo.

lower sales actlylly... of nitted laminated flights — a proftrainme to in-per

Prices floated downward as Avco Corp, was the most nctivity sagged to seven-month active stock, rising 4 to $214 lows and no amount of news on 197,000 shares turnover, The good or bad-could

snop the company reported market out of its alumber. but higher earnings for the five months ended May 31. General Motors followed down as the industry began contract talks

Business activity wasn't bad just not good enough to con- vince the weather-smilien In- Yesters who looked for a reason to explain the deadening slate of affairs.

The Dow-Jones Industrial average last week, dropped 4.70 points to 683.00. lost 12.76 for the month of June and was a hefty 60.07 points higher than at the end of 1900.

The rail average for the week fell 9.43 to 139.47, dropped 5.44 Just month but was 11 8.02 for the half year. higher Ulties held to a minor 0.07 last week to 111.74, down 1.03 for the month and up 11.72 so far this year.

with aùlo worker.

Fruehauf Trailer placed third and higher by 1% helped by newspaper articles and recom- Jersey Standard mentations.

a weak oll section cased in smatting under the Iraqi threat oil-rich Kuwait. to take over

Gulf Oll, which has large hold- ings in the Middle Eastern Shalkdom, dropped 2 points,

Fard Motor was

fifth most active and down a hefty 3% tu $81%, following the success- ful offering of 2,750,000 shares at 804 by the Ford Foundation. The success or failure in getting rid of this huge secondary offer ing was held to be influential

etermining the near-term course of the market.-UPI.

VOLUME DIPS Volume on the New Yorkin Stock Exchange these five days sild to only 13,554,210 Aheres from 16,070,500 a week curller and compared with 14,820,404 a

BANK OF ENGLAND.

STATEMENT

For the month of June, stock sales were the lowest for any month since last November. Turnover, depressed also by fre quent warnings to hold down the speculation, plungest

10 73,121,328 shares from 90,950,- 138 in May and 76,532,050 in June 1000.

The machine-loof industry, on which the steel industry also depends heavlly, also is optimistic

output and

London, July 2. sales will be up. confirming

The Bank of England state- the general trend of the ment for the week ended June economy. This Industrial 29, reads as follows: arctor is now operating Notes in circulation €1.340.03.200 For the first half year of 1901, only 55 to 60 per cent of His Publie dépoalta ...... 13.002.77. however, a so-called “new cra" total capacity.

Privain deposit#

333,400 130 Clovernment Recurities 3,100,140 in public, participation in the Other securilfon

1356,079 3tock market, volume soared to Receipts

35.204,014

o record 571,794,381. ahores, up allo

from only 392,831,331 in 1960 and higher even than the 537,858,000 shares traded in the first half of 1920.

More automobiles and tools sold and running are expected to bring reller to the oll industry which also has to cope with plenty of problems.

• In

UNIT TRUSTS

considering the factors that Janve produced the to the Treasury Secretary, C.

busin:59 upswing, Federal First Hongkong Fund: $1.34 Dougles Dillon, the gross tional product

authorities and experts have (buyer) $1.43 (seller). been heartened by $49,000 million in the first quar-that the recovery

Second Hongkong Fund: $1.02 so far has (buyer), $1.00 (seller). ter this year to $530,000 million

led to no major price Increases, thus

in the fourth quarter and keep rising to an estimated $570,000 million in the final quarter of 1002.

קום

The spreading optimism of a newly-resumed cernomle growth has bolstered traditional position to Federal spending on Capitol HIN,

where

many members belleve the Lewer Federal controis the better. And many have their eyes set

the fact

lessening the threat of inflatien.-UPI.

Agreed merchant

rates

Maximum

Canadian Dollars: Selling 17-13/16, Minimum Buy- ing 18-1/16 T.T. 10% O.D.

Swiss Francs: Maximum Sell- ing 74-3/10.

Maxiraum

Belgian France: Selling 853.

West German. Deutschemarks: Maximum Selling 68.

Exchange rates

Some 1,450 issue. crossed

Thainees we done in the local unofficial exchange marloot this the lagging tape last week

morning at the following rates: and these included 802 losers US dollar (per #1)

150 which against

managed Sterling nates (per £1) kaina. Now lows also pre-Australian notes iper ka) dominated over new highs--60 to 47.

Indonesian rupiah (per 100) Siam ficals (per 100) Singapore (Streita) ****

fabrics. Synthetic fabrics were reasonably slow but prices were steady.

Carpet wool markets were active

and prices firmed up. Apparel wool consumption by domestle mills is continuing at a high level and combing plants have been forced to operole overtime to keep up deliveries.

Burlap demand was sluggish and priecs were caster. Spot and afloat shipments dropped 10 points. Current dullness is ex- pected to continue until mare raw Jute crop information be- comes available.

Trading in alcal was at a standstill as the market awaited disposal of 5,000 tons of ten year old sisal stock by the U.S. gav ernment. Prices on both hemp and sisal remained unchanged na Binder and boiler twine manu- facturers studied the crop out- look/UPL

•*

The

Singapore rubber

market

Singapore, July 2 rubber market horo continued very quiet last wook, u leading rubber brokerage firm said to- day.

33.

340

181

DIES Prices

A weekly report issued by Holiday, Cutter, Bath and Co. 10.00 Ltd, said the Berlin and Middle East situation had no effect of

have which

moved Bluggishly within narrow limits.

The report Bold that the market "basically at the moment appears oversold with operators, while awaiting a further decline, were disinclined to increase their commitments. With overnena off- take at a low ebb, routine day- to-day selling has been suficient to cope with buying orders and. a state of stagnation has been rencbed."

Raw cotton "Too many people are

exports

New York, July 2.. Raw cotton exports by

already on Congressional stination as reported in bales by

elections now away:

only two years

Many businessmon are pre- dieling that productioa and sales will equal or outstrip pre-stump levels in the second helf of the year. But some

the New York Cotton Exchange for the 1000-61 season through June 27:

Brain, 383,037.

Continent, 2.534.107.

Urlent. 3,157,441

Canada. 333 804.

Total for season, Inters Included,

sectors, including oil, machine C,30,650.

Total for

tools, chemicals," steel and the 6,439.181, inters excluded,

P.O

ORIENT

LINES

s.s. "CHITRAL" sailing for UNITED KINGDOM vio SINGAPORE, PENANG, ADEN, SUEZ, PORT SAID.

EMBARKATION: The ship will be barthed at No. 1 Fler, North, Kowloon Wharf. Pas sengers should embark between 2.30 p...and 4.00 pm. on Tuesday, 4th July, 1901.

SAILS:

BAGGAGE:

trying to grab too

much cake in Britain'

By Alexander Thomson

London; July 2.

How serious is Britain's economic position? Along with thoughts of summer and sunshine this is a question that should be in everybody's mind.

For once more we are off along a well-worn trail. As a nation we are "in

the red" again.

Another Chancellor of the The Germana, # discloses, Unfortunately the whole bust- Exchequer is giving us Stern have limited their price (ness of wige claims is starting warnings" and saying what must creases to an average of two up again us it oversens custom- I be done to put things right. per cent. The Swiss have man- eis böugist our goods just for the

of four per fun of it. We have heard it all before aged a reduction with bewildering

This is the background to our regularity. cent, And yet nothing seems to get; What is the result of this? present difficulty which is tech

The Bank shows that British nicely called a balance of pay- exports have gone up by only ments problem.

any

Better for very long

It is still too early to say that we have run into another crisis after a breathing spice of only three years. fortune soon enough unless wo But that could be our mis-

face up to the pretty quickly.

fact of Wo

By now these facts are well known. We are spending far too rauch overrena and earning far

The ship is expected to sail at 5.000 p.m. on Tuesday, 4th July, 1961.

Should be sent to the Hongkong & Kowloon Wharf Co's Godown (No. 21 Gato) Canton Road, between 8.00 n.m. and 6.00 p.m. on Monday, 3rd July, 1981.

SUBJECT TO CHANGE

Agente!

MACKINNON, MACKENZIE & CO. OF HONG KONG LTD.

P. à 0. Budding,

HONG KONG Telophone: 85211/0

Utle there,

20 per cent since 1953 at a lime when world trade has grown by: 50 per cent.

CONTINENTAL RIVALS

How different is the story from Our continental rivals. Germany's exports have expand- end by 150 per cent. The Dutch are showing #02 per cent goin. The Italians one of 180 per cent,

'IN THE RED

of

The only bright spot, it said, has been the continued demand for No. 2 and No. 3 Ras for July and August shipments with fair quantities traded. The market came in line with blts for No. 4 Rss for North American destinations, resulting in far transactions but with further Interest uptapped at Jower lovela,

The

said report

remilled interest was on the small side with factories virtually absent from the market.

The rubber market Inst Friday

opened with July 1 grade rubber quoting at 83% cents per pound, unchanged on Thursday's close. The market tone was quiet. UPI.

Cotton weekly review

New York, July 2

notices an

Final report on a series of link capable of handling up to four special X-7 thermal data |1,000 temperature measurements second. This information of aero-was fed to computers and data vestigate the effects dynamic heating at supersonic reduction apparatus at Lock- speeds on air frames and struc- į heed's Sunnyvale and Von tuces has been submitted to Nuys plants via magnetic record- Air Force by Lockheed ing tape for processing and Missiles and Space Division analysis. engineers at the company's Van Nuys, Calit., plant.

thd

The flights provided informa- tion needed in the selection of materials and design of struc tures for advanced aircraft and space programme in the come category as the B-70 bomber and some ballistic missiles.

than 15 miles.

and

At

A quarter of a million itema of data were obtained by Lock- heed in the thermal data pro- gramme, it was noted.

While engaged In the thermal data programme, the X-7 missile pertofmed a double duty: it continued ita normal job of testing out new Marquardt ront- et engines for the Bomarc interceptor at the same tinte.

Following each of the four thermal data fights, the nit- launched 33-foot long X-7 made

successful parachute

desert cands.

#

1086-

In this series of thermal data flights, of the Air Forte Missile Development Centre (Holloman) in New Mexico, the X-7 flew at apceds ranging from 1,500 to 2,000 miles per hour altitudes between five and more spike landing in the New Mexico At the conclusion of the fourth Temperatures encountered and final fight the X-7 vehicle's which carried three- were from 700 degrees Fahren-wings, helt down to 50 degrees below quarters of the thermocouples, zero in the matter of less than were removed and sent to the 90 seconds.

Air Force's Wright Air Develop- ment division's structures labora- The highly-instrumented X-7 tory in Ohio for additional used only onc recoverably aerodynamic heating simulation. vehicle was employed for all The final report represents the four thermal datë flights - was climax to a seven-year prd- equipped with some 400 tem- gramme started on its own by perature sensing devices (hair-Lockheed as part of its research ilno wires called thermo-activities.

In 1937, the Air Force couples) and 25 pressure sensing devices built into the structure, which had been sponsoring ox- tensive wind tunnel tests and Dola was radio-transmitted theoretical analyses to explore from the vehicle to

around aerodynamic heating effects --- stations through a telemetering was seeking a durable. but

HONGKONG

STOCK EXCHANGE

Our Own Correspondenté

economieni high speed vehicle for the real test: actual fights. This was necessary in order to establish the correlation between the ground-gathered data bod air results.

Vehicle chosen for the super- sonic fights by the Air Force was Its Lockheed-developed X-7. Highly successful, the X-7 thermal data flights not only proved out the analyset made from the wind tunnel and com- puter operations but also gather- ed additional valuable informa- ilon that will be appiled to "spaca birds" still on the draw- Ing boards.

The thermal data project was Business done at the Hong-

one of the last missions per- Stock Exchange this formed by the velemn 13-year- kong morning amounted to approxi-old X-7 missile programme. The mately $4,270,020. Noon Anal X-7 flight the 130th quotations and the morning's took place in the skies, over the

New Mexico desert. transactions;

Shares

EK Dank..

Lombard HK & FE Wharf Wheelock

. All.. HK Dock.. Taikoo Dock Provident ..

JIK Hotel..

Bayer

410

Bellers

420

Satse

100 420

10 4 422

5420

70 420

20.20 20.00 1000 se 20.30

404

200 44 400

14.20 2000 ‹ 14.20

110 112 3500111

Communications equipment

70 7516 200 75% North

351 B00 3514

500 44 33

48% 40% 2000 4094

I

#434

UK Land

HK Realty'

New

HK Tram

10004074 0400949

100 43% 2000 440

200 or 4914 300 4834 45006483

75 2000 4P 75

40 60 753 1200 ur 74:6 2.70 2.72 2000 @ 2.129

2000 or 3.727

131 2.83 13 4314

500 a $322

2000 $3

2049

1300 si 4945

80

500 # 139 130

KJ.D.

81 B1

Yaumatį

135

130

100

Ch. Light - 3716, 3724 1000 of 37

300 3715

1300 +$75+

30 2014

400 gr 30

HR Tel

JK GAS

Climan Jardine

It crept up on us last year whom

DVETSCA Dur

accounts Cotton futures were fairly there. | swung from a surplus of £51 quier fust wook, with the

million to a hefty dedcit

spotlight contred on the £344 million.

now July contract. July had 198 Monday, and by Thursday had chalked up 100 Open interes: 140,000 before has gone from notices started down to. 0,000,

The 100 tenders and the Now our luck has run out, result in

have iquidation Money has been sowing back practically ovened up the July to the USA aguiti as the position. business there has improved.

But last year we were lucky. Fears of a crisis for the im- swept round pregnable dollar the world. Large amounts of international money dowed into Britain to help us out.

Other montba traded

:

:::

ཊྛོ ཝོནྟོ, ཙྪེ ཙཉྩི ནཱནཾ

6716

23.10 23.20

0.30

*9.00

4000 69 6.90

290 30

American

Company

Philips (N.A.P.) ro-

cently took part in con- structing the largest com- mercial network of its kind in the world.

The Teleregister Corporation of Stamford, Connecticut, sup- plied to United Air Lines a Const-to-coast data processing Bystem and nwärded Ñ.A.P, the contract for all data cominuni- cations units that were used on this project.

the All of advanced-Unsign data

com- munications equipment that plays such a vital role in United Air Lines Hew "Inatamatie?' re- servation system was developed, Telc- produced by Philips" communication Industries HU- versum, Holland, and delivered In less than three years.

The coast-to-coast_dala' pro- cessing ayutern provides résorva- tion data for a thousand ticket 1500 27 381% #gent locations throughout

US. and operates at over 1,300 1300 @ 23:30

milnuté. Intricate 10002330 Words: per

Philips edinmubication devices Incorporated in the network automatically check errors, determine mtssage destinations, locate operating irregularities, 629.90 and reroute traffle in case of

1100 30

4650 30

300 29.80

800 30

Cement

601%

GT

2100 © BY

Dairy

€972 4116

on

1000 à 41%

But surprisingly Htilo has so far been achieved in effecting a lasting enre. We go Jorging not be the only reason for this

Less lively salesmanship cac along 1 d comfortably

lsperity. Prices must also have Leather-bedded economy and had a hand in it. look pained when the next shock arrivga.

And now it seems that – if we do not watch out they may We have been left to stand on straddle differences during the Our politicians beem to think] become more and more "of

our own two feet and by the week. mure of popular voler than handicap in futuro.

Trade houses also look of things are not any too,

straddled competitive power although it Mr Solwyn Lloyd tello ud steady on the

along with some hedge lifting. appears to be, going dowas and) that wages and salaries havo

Some of our companies sro, Friday's close saw the list down all the time.

been riding at an annual rate still doing spógnificently at ex- two points higher to 11 points On this key question of Bri- of B% per cent in the past year porting. But many others find lower, Spot July, rose from

then what he 'calle "this eternal they cannot do well enough. tain's power to compota

89.21 on Monday to 80.24 centsy totor bank für international esitles | leap-frogging process.

For Britain seems to be, "9%) at the end ot šĺie week. ments at Basle tuam semd start- Yet over this period indus the red" in more than techni-i Private amp

re Lane Craw ling things to say,

trial production' has been việcal balance-of-paginėsite, porno, ported favourable progresa in the In a clinically doinched way ipally static. Wages have shot Too many people, się trylog) "west and fur work tart cool Ahat,Cla the bank, calouinier that UK #hend Producfvily has got to grab too much vako. There la mention and relig slowed Union wrboat 2:39 export prices fievo gieon by, 10 Only higher prices (softened by not enough awareness of the cotton in the ewertenl poc cand,or 2/-"In the pound in lower prodt margitis) cati fil linedd for Bil to put together--| castorn portions of the bell- the seven years,

London Depress Dervios,

UPI.

the

And

1000 40

12:03 47 4135

is

line outages. Tito system interconnected by 12,000 miles

of leased citeulis.

According

Unk,

| expert,

in

to Prot.

J. M. Philips, communications the new trannision. end switching -systém lo the shont advanced of its kind existence and provides a very' high – dégree of reliability 24 hours per day. Approximately. 400,000 translators, 40,000 printed 4000, # 69 circuits, and 2,000,000 ferrito cores, were add for the job. Major equipment fri the Pallips 'unita in duplicated. The Philips system can. Also detect efröre in messages that are being trans- mitted.

Textile

$ Nanyang

1.43 7.30

Amil Rub. fun. Trust

• 0.43

J

37

7.20 B.30 2000 k 7.95

100 301 1500 i 50%.

$515

1000

1434 @ 406

40

14,70 APPOR, KUIDOver $6879,490.

Huny

BUT TITTY

MKONO MO

**

*

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