1953-03-24 — Page 9

Page

British Economist's

Libya

Tourist

Project

Benghazi. Mar. 23.

A Franco-Belgian group is ready to invest large sums 10 develop tourism

in Cyrenalca, the Eastern Pro- vince in Libya.

Talks are under way between

a representative of the grestp and the Libyan Government to!

obtein the necessary permits to

up first class Intels communications throughout, the

Proving

#141

"We are also trying to enlist

Lilyon mapitat into this venture which promises to be highly

and the

successful," Roberi Misson, in an

M. Misson, Belgian who

+

Theory On

THE

Pound's Value

London, Mar. 23.

Professor Colin Clark, the Oxford economist, has almost certainly started a controversy by arguing, in

in the Manchester an article Guardian's Annual Survey of Industry, Trade and Finance, that the Pound Sterling today is “worth"

its official rate of $2.80. no more than $2.50—roughly 10 per cent less than

By "worth" he means that this rate of $2.50 would so cheapen the world price of British goods and services as to stimulate British exports and give the Sterling Area, not merely an uneasy balance of payments, as at present, but a really solid balance with an annual surplus of between 300 and 400 million dollars which Britain coul‹---- and, in his opinion, should-lend abroad.

fought in the desert war as an officer of the Libyan units set up by the British, has lived in Benghazi since

the end of World War II. He is a merchant zind The Honorary Consul or Probably the first reaction to Belgium.

this will ce from the Bevantes, "This country has all it needs for the argument rather plays to becom a very important into their hands. target for tourists from all over

the world."

M. Misson

The climate $ mild all year

round There am ancient |

re

altes-Greek and Roman

mains of rare beauty all along

the coast East of

Benghazi

M. Misson meertioned partí- cularly the Temple of Apollo,

Apollonia,

swar Benghazi.

Apollonia is now called Susa.

If

WAR GRAVES

Moreover,

ver, he said, thousands

soldiers of several nations

who died in the war are buried.

Any pale Bigher than $2.50, hei The reason is that Professor contends, wild trave British Clark, in his largely, technical goods ton expensive and would discussion of Sterling's difficul- handicap exports.

ties, specifically accepts without criticisin the political factors---- the cold war, with its restrictions on world trade, and re-armarment, with its fairly notorious

burdens on the economy.

This

gives Mr Bevau and his associates; a chance to argue that the burden of reatinainent, unless reduced, will fores another devaluation upen the ectistry with

all the

the hardships which that would bring.

HONGKONG STOCK MARKET

(From Our Correspondent)

ju Cyrenales, "Thele families Value of business transacted in

ww

better In his

And there will be economists, too, involved in the controversy. Professor

Clark remarks that, the time u

of the devaluation in 1949 from $4 to $2.80, "probably the majority

British economists thought that devalta Hon was a mistake. Much the

ut

heard uttering emphatic protests and as soun as the question devaluation ronles up.'

RISING COSTS

would want to come to visit the Stock Exchange this morning, same group of economists will be their graves if facilities were was $220,795. The trend was

Mt. inclinei 1 be sluggish. country,"

only Telephones went past stugle

The morning' deads as yo- corded:

Misson continued.

M. Misson would give no de ↑ cleulu, tails about the group he presents. Nellher would be men-

several

Lin the amount to be invested,

thousaals

of BANKS

"It would ruis up to hundreds Pounds," he said. "But we would rather not give more precise de talls until at least an agreement

principle with the sithorities, Is reached."

RK Mank

El Asa INSURANCES

.....

Inion ... Underwriteis SHIPPING According to M. Misson, the

Asn Nav. plans

establishDOCKS, ETC. group several first-class hotels

JI

K. What

1XD; Benghazi,

10

Cyrenia, Dern, Tobruk. a rest house en the beach at Appollonia · and 415) - other

rest house at Cupuzzo The

near the Egyptian border.

5

ESM 14

ROU

745 3.40

1080

137

N. PL. Whart' Dock

A

Provident

וט

DITUSI

15. 191, 500 15 30 be heard from.

1090 11.10 1965 2.10 Wheelock. 714

S'hal. Ik

Group would start with re- LAND, ETC. fitting the Berenice Hotel, over- looking Benghazi harbour.

the headquarters of British

in troops

Cyrenaica,! but the military are due to move out soon

"As

BUS SERVICES

far as communicatiom is concerned," M. Misson went -on,-"we-would-have-to start. almost from scratch. There Bre food roads in Cyrenaica, especially the coastal highway which

stretches from Tripoli! eastward to the Egyptian bor- in Epp! der and is continued Alcxandria.

present But bug services are few. Obsolete and uncomfortable vehicles are being ured."

10

Plans call for establishing regular Pulmon bus services between Benghazi and the main towns of Cyrentieu, down to the Egyptian border,

to

ไป

"Later we may work out an agreement with Egypt extend the bus service Alexandria. An alternative would be to make arrang:ments with m Egyptian bis company which would take the tourists 613 the trips in Egyptian territory."

M. Misson said his group had no illusions as to the dimeul- tles of building comfortable Justaliations in the towns Cyrenaica, haif

ravaged

of

7

1

reno 145

21

Boiled down, Professor Clark's argument is that American costs will rise during the next three

This Yestrs,

would ba advantage to British exporters if they could huld down their XD!... ∙13 300 481⁄2 own costs.

But he contends that British

risc, in costs will

step with Healty

American costs, or even higher, UTILITIES

Tran XD 2018 2007 2000 » 20 40 and in the end British goods will be unsalable abroad unless the Pound is devalued by at least 10

(XD) H.K. Land

S'hai Land.. Humphreys,

140

12.30 2.277%

1

CHINA MAIL, TUESDAY, MARCH 24, 1953.

Jap

Officials Much To Be Said For MESSAGERIES.

For Europe

Ti

Tokyo, Mar, 24

Govern- Japanese

inent today decided to send two ufficials to Europe.

Tor Cabinet's trade ex- ner), Mr Iliro Furunchi, will shortly tour France, Germany, Sweden, Brital and the Nether lands and will attend the

European Payment alon Conference.

A Finer Ministry official, Mr Takel Tojo, will procecil to London in mako arrangement.

foreign on exchange problems, Frutice-Prease,

Shipping Industry Complains

New York, Mar. 23. The American shipping indus- i try complains it 1 being qued from alt sides. The

Mjueezes include:

the

A tremendous upsurge in merchant fleets of Western Germany and Japan, and her leading maritime nations.

2. A substantial decline in the volume of available cargo,

4. A new campaign by Euro pean nations to end the "50-50" shipping provisions ol the Mutual Security

Act.

4. And the delay of the Federal Maritime Board in approving new dual rate plans of the freight conferences,

Policy Of Investing

In

Preference Shares

London Financial Writer's Views

(By Norman Crump)

London, Mar. 15, Some people are inclined to regard the Pre- ference shareholder as having the worst of both worlds.

They argue that if things go well he gets his fixed dividend and no more. If things go badly, he is asked to sacrifice some of his rights, whereas the Ordinary shareholder makes no more than a nominal sacrifice.

Experience has shown that there is some truth in this argument.

On the other hand, provided that one holds Preference shaies in a large, well-managed and prosperous company, it is possible to secure a safe and reasonable income.

British

3

In proof of this, I made a selection of Preference shares in a few of our leading companies.

My 1st comprised American Tobacco, 5 per cent; Courtaulds, 5 per cent; Unilever, per cent; Shell Transport, per cent: Woolworth, & per cent; Tate and Lyle, 64 per cent; and Imperial Chemical Industries, 7 P

examined their prices and yields on March 4, 1052, when markets generally were at their best for the year; on June 24, 1952, when markets were at their worst; and at the beginning of last week.

cent.

COMPARATIVE YIELDS

Fleets of Western Germany and Japan have made a remark- able resurgence since the war. Ant feels of a number of other European emmiries have been in- creasing, American hipowners elain their higher operating

Next compared the average costs, due largely to higher wages, place them at a sharp yield of these soven Preference shares with the yield on 214 per disadvantage da world trade,

Ocean

have Cargoes

been cent

and also oth declining for about a year.

Ordinary shures, this last being the "Financial Times" average. ilere are the results:

Mar. 4 June 24 Mar, 10 1952

1932 1953

L

PETITION TO US. The "50-50" Mutual Security

50 that at least

financed targo

ule yk the Art

provides per cent of all

by

Mutual Consuis

new

Consols

4.10 4.18

4.52

4.18

5.25

4.93

than.

ta

shares are written £1 to 159.

down from

On the face of it this may seem fair, but the Ordinary shareholders retain the equity, and if the company once more becomes prosperous, they may get just as big dividends as in the past.

MUST BE VIGILANT shareholder has lost permanently

Meanwhile

one-quarter of his Income.

Should it become necessary to write down Preference shares, there is much to be said for transferring to their holders part of the equity.

But

In any case, it in in- cumbent upon the Preference shareholder to exercise due vigi- lance. If he sees a risk that his dividend may be passed, then let him sell it once.

the Preference

11 is useless to wait until his dividend is several years in arrears, or until he becomes the victim of a capital reconstruction.

fre

Provided these precautions are taken, there is much to be sald for holding Preference shares. They give

a better yield than git-edged stock, and they Jess Hable to market fluctuations with their attendant anxieties.

DE BEERS While the dividend of 200 per ent on the Deferred shares is maintained, profits, before tax have fallen from £12.038,000 10

progress.

They almost certainly will. For The idea that devoluation ot

currches is a neat country's SHARES BUYERS SELLERS SALES statistical device enjoying the sitent approval of the Moral Law 1:50 is much less popular today with 30 149 British

Continental Security funds in this country Preference 5.11 and economists than it used to be. must be carried abroad in ships Ordinary 0.02 6.54 5.40

Its long-range

of American registry. European ensis to the

The fact that the Preference tions contend that if they were yield comes in between the yields community, for one thing, are thuch more vivid today than they permited to carry more of the an Console and Ordinary shares

cargoes, they would thus carnis no more were in the 1930's: Lea by Mr

one would

however, requires Thomas Balogh of Balliol College, „more dollars and require 1955 expect.

only £1,825,000 in place of doubts aid. They

Of much more interest is the these economists will

also argue that the

£2,000,000, so that net profits rule permits American ships to relative stability of the Prc- operate

where they would not ference yield as compared with have fallen only from £19,338,000

to £10.000,900, otherwise rum, and that they are the other two yields. This means now carrying more

This last decline is a moderate American that the prices of these Pre-

ference shares have also been that little anxiety need be felt, trade than formerly.

the more Sixteen European nations are stable.

so as Consolidated said to have signed a petition to To quote the most striking Diamond Mines, one of De Beers' the American Administra- example, whereas between March chief subsidiaries, continues to

good tien asking for a larger share of 4 and June 24, 1952. Consols fell make this business,

from 504

55%, British The average selling price of Meantime, many American American Tobacco 5 per cent diamonds has also been main-

alarmed over cares Preference fell only from 19s. tuined, lines are

that but it is possible pending before the Federal 10d. to 10s, d Since then costs have been rising in the

mines. Maritime Board and Federal Consols have recovered to 595, older

· ---- may......... be...a— alight, courts which threaten the ability and-B.A.T-Preference to 20s.-34.

temporary of conferences to which they

reaction in share WORDS OF WARNING

prices, but De Beers have so belong to set up dital

that the long- many interesta This suggests that last year. at term outlook remains good. any rate, the holder of the

of grade Preference shares would have had loss anxiety over market fluctuations than he would have had from a holding of Consols. He would also have had a better yield.

Against that, it costs more in stamp duty and commission to buy Preference shares than it does to buy Consols. To allow for this greater cost, it might be better to scale down by, say, 0.15 per cent the yields on Preference shares shown in the preceding table.

"This is the case for Investing in Preference shares, but there are companies for which it is necessary to add some words of warning. The first is, what la the cover for the Preference dividend?

Peak Trom

(OM) Peak Tram

(New) Stir Ferry

16

per ce almost certain to be

rate

systems. These systems enable

This s 102 C. Tight (0) pan 155 100

challenged. The prevailing view 1.43 it C. Light N 6 $.10 2000 + 0.05) in economic discussions is that ei (NT) 2160 210 30 2170 British costs are fully competitive 100 m with the costs of other industrial

highest 14 10:30

1216.30 countries, and that the trouble

(XD).....

INDUSTRIALS

16.20 with exports lies elsewhere.

200 1020

A CIRCLE

The trouble is that there is, 19 19:31 700 20 30 currently, a shortage of Sterling

Pement (XD) 34 60 14.50 STORES, ETC.

Dairy Walson (XP) 20 G

TONS Ewa

212 500...

2.1D

Conference

On Asian

Minerals

available to those countries which. would like to buy British goods at current prices.

That shortage, In turn, is due

to Britain's drastic reduction of her imports. The circle is un- pleasantly complete.

That, approximately, is the prevailing view so far as it is

the voice

financial

j

economie Press.

lines to charge lower rates for regular customers, -- Associated Prees.

NY Cotton

Futures On

Downgrade

18 to 30

انه

New York, Mar. 23. Colton and

futures started lower today and continued on the downgrade till the end of the The problem is more and more seen as an international one session,

After opening International trade is "slek" and

4 to 8 points has been ever since the crash of Tokyo, Mar. 23.

Tower, the list at the final bell Seventy-five technicians and | 1029.

ruled

points lower. The market The International Monetary | The

opened under the by geomimic experts from various

liquidation Asian and Western nations will Fund has striven to cure it, but weight

and several years of total war.

operationa without hedging

caused by "But the Libyan authorities come to Japan next month to thus far, it is argued,

discouragement Over the slow have shown great interest about attend a nine-day conference on making much headway.

But Professor Clark has in- demand for cotton on the spot our project. We hope, with their mineral resources development

be able

terrupted this discussion with the cotton markets, co-operation, to

toin Asia starting on April 20. all

that said the con- pessimistic Kyodo Press the obstacles

prediction overcome within

shart ference, which will discuss the Britain will be forced back to the reasonably period," he said. - Associated development of mineral resources old and unpopular device of Press.

in Asian counteles and hear re-devaluing its own currency In on the distribution of order to survive.-United Press. ports

wik be int sponsorship of the Japanese Government and the UN Economic Commission for Asia and the Far East (ECAFE).

Indla. Pakistan,

a

Grain Prices

In Chicago

Chicago, Mar. 23. Prices of grain futures closed today as follows:-

Wheat price per bushel

Spot

May

July

September

December

resources in this region, wi

held under the joint

Indonesia and senti

the Philippines will be among the Asian nations which will

LONDON TIN

MARKET

London, Mar. 23. The Un market was steady

delegates to the conference. The and quiet today. Turnover was United States, Britain, France, 20 tons including Ave tone for Holland and Soviet Russia are cash. Prices 'closed at the end also

expected to be

be represented, of the official morning session International gaoups such as

as follows:--

2. the secretariat of the ECAFE, the Spot tin, buyers

2.233

2.351

2.37

Com

Spot

1.50%

May

1.5022

July

1.014

Sculember

1.B1

December

1.08

Ryo

May

July

1.7014

Qata

May

July

2039-10 TEK-6

New York four-per 200 lb. sack $1329 nominal.—United Press,

Kampala, Mar. 23.

Food

and

Agriculture Organisa-

Spot tin, sellers

lon (FAO). the International Three-mentia tin, buyers the Intern (ILO) and |

Labour

*** | Uusinem dono al

Three-months tin, sellers Business done at Satitoment

Chamber of Commerce will also join the conference.

The Japanese chairman of the conference will be Shinrokuro Hidaka, former Japanese Am- bassador to Rome.-United Press.

PIJ

$14

143

930

0304

-United PTAK

WOOL MARKET

Sydney, Mar. 23. Today's wool market, com- pared with last Thursday's closо, ruled very firm for spinners'

Exchange Rates Cescriptions of fleece and skiri

Burineer was done, in the leest Uganda's exports in the first unonicial exchange market this 11 months of 1952 were £2,000,-morning at the following rate

Us. dollar (per 1) 000 below the 1951 figure Bierling note. (per. Ell... because of lower colton prices, Indonesian guilders (per 100) the Governor, Sir, Andrew Siam ticals (per 100)

Bingapore (Birnits) Cohen, sald today. Heuter, FIC plastron (per 100)

4.9578

21.30

35.10 10.36 1229

runs at the Sydney wool cales,

Sales continued under keen and widespread competition from the Continent, and the United Kingdom, well supported by Japan and the United States. -Usfied Press,

There was some mill buying

-Thore

The Rubber

Markets

Singapore, Mar. 23. Prices of rubber futures closed today as follows:

Number 1 rubber, per ib,

April Moy

June

Number 2 rubber, April. Number 3 rubber, April.. Number 4 rubber. April.

Spot rubber, vabaled Blanket crepe No. 1 pale crepe

63-80

United Press.

NEW YORK MARKET I am not going into the rate

New York, Mar. 23. of Ordinary dividend, or the re- The rubber market closed un- lative size of the Preference and changed to 50 points lower on Ordinary capital.

sales of 20 contracts.

Prices Instead, compare the cost of of No. 1 rubber futures closed the Preference dividend with tite as follows: amount of net profits left over

in evidence but this was only after all prior charges and also Іл sub- the Preference dividend have on the scale-down. sequent dealings commlesion been paid.

At the same time examine the house and New Orleans opera- tors increased their

selling, extent of the variation in this to the amount year by year over the pushing values down lowest levels of the session. past five or ten years. This will continued quietness in show whether the Preference

ever been the textile goods market also in- dividend has

fluenced the trend of the prices today.

May July

December March

september

Stay

26.10 traded

25.03 traded 24.35 traded 93 traded 24.00 nominal 2635 nominal United Press, LONDON MARKET

London, Mar. 23. Prices of rubber futures inclused today as follows:- list Jeopardy, and will suggest what is Number 1 rubber. In pancs

per I the risk of its being in Jeopardy | April

Kay June The lower prices for most in the future. other commodities, Especially

April/June July/Beptember grains at Chicago, brought on some selling.

The

A

HOLDERS' RIGHTS

United Press.

Next study the Preference The prospects of large shareholders' rights. Are the gotten acreage brought selling Preference shares redeemable JAPANESE BONDS

and if so, it what date and at into

what price? How do the Pre- ference sharca

new crop months. It is es- timated that the cotton acreage be moto than thin year will three per cent farger than 1052,

The New York Colton Ex- change

Service days ifle trends at the moment indicate that the domestic cotton consumption this seron will be between 0,230,000 and 8,500,000 bales, United Press.

Copra Quotation

at

New York, Mar. 23. Copra was quoted today $237.30 por short toh, nomittal, CIF the Pacific, Coast, Cocoanut cil was quoted at 184 cents pound, traded-United Press.

in the event

These points are of obvious im- porlance when Preference shares are quoted above par. Finally, what are the Preference share- * voting powers, and under holders what circumstances can they be exercised?

of volunt?

If things go wrong, so that a writing-down of capital becomes necessity, logically the whole of should the Ordinary capital disappear before the Proference capital, is touched...

Japanese

Г

bonds "A" (48 "B" (s.

"D" (5%.

#

Consals

London, Mar. 23.

of 1000) 83% of 1010). 72 of 1907) 12734% of 1924) 102 (5148. of 1030) 147

39-13/10 United Press.

Seeds And Oils

New York, Mar. 23. Prices in the sweds, and blis market; closed unchanged, will In practice this never happens, | the following exception even though Ordinary abares Flax seed, per bushel, Lod may be written down from £1 Minneapolis. to one shilling, whill Preference Press.

$3.00-Unlted

M

MARITIMES

M

PASSENGERS/FREIGHT SERVICE

Cutwards "FELIX ROUSSEL" "LA MARSEILLAISE"

Homewarda

Leaves Marseliley

alled

17 Apr.

1Fottakong

15 Apr. May

Ilongkong

Due Marsellies

For Aluniia Voltabanie

Via

19 Apr.

20 May

Sugen Noia

West Africa ports.

“FELIX - ROUSSEL" "LA MARSEILLAISE" 21 May

via Marseilles to all Mediterraneon & via Djibouti to Madagascar.

FREIGHT SERVICE

Outcards "MIEINAMI" "MONKAY"

Tomiewards "COURSEULLES” "MEINAM" "PEI-HO".

"MONKAY"

Leaven -Bunkirk-eniled

Antwerp Apr.

Leaves =keelung10 2184. -Keglung-28 Apr. .reluhg—ất MAY

Keelung-18 June

13 June

Longkong

For

Apr.

Japan

23 May

Japan

For

Bhugkook

2 Арг. 30 Apr. 30 May 20 June

† Saigon, Marseilles. Aiglers, Oran, Tanglers, Casablanca, Le Havre, Antwerp, Rotterdam & Dunkirk CIE DES MESSAGERIES MARITIMES P.O. Box 53, Hongkong Queen's Building (Gr. Floor) Tel. 26661 (8 lines).

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:

·NEW YORK, BOSTON, BALTIMORE & PHILADELPHIA via SAN FRANCISCO, LOS ANGELES AND PANAMA.

NEXT SAILINGS

".. "ANNA MAERSK" m.v. "LEXA MÄERAK** m.r. "PETER MAERSK”

• Calling Vancouver,

ARRIVALS FROM U.S.A.

m.r. "LEINE MAERSK”** m.v. "JETTEREN MAERSK m.. "RETE MAERYK"

Apr.

Apr. May

17

Apr.

14

Apr.

Apr.

For Freight and Further Particulars please apply to:-*

1

AGENTS:

JEBSEN & CO.

Pedder Building.

Tel. Nos. 36063-9

Chinese Freight Booking Office 27, Connaught Road, C.

Tel. 20461

Dates and rotation subject to change without notice.

At liberty to proceed vix other poris toʻload/discharge cargo.

EVERETT

LINES

EVERETT ORIENT LINE

Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.

"NOREVERETT"

In Port Sails

Loading

Singapore.

&

Penang, Calcutta.

Mar. 24 for

Rangoon

"BRADEVERETT”

Arrives Sails

Mar. 25 from Singapore.

Mar. 26 for Kobe & Yaltolam",

(Accepting cargo for transhipment) Kobe/Pusan anch Kobe/OkinawS)

EVERETT STÁR LINE

Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam. Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports.

"THAI"

'Arrives

Salls

Apr. 2 from Japan.

Apr. 3 for Singapore, Port Swet- tonhom, Madras, Colombo. Bombay, Karachi, Khor ramshahr, Basrala & Bahrein.

"STAR ARCTURUS”

Arrives Soils

Yokohama.

from Singapore Apr.

5 for Kobe Apr. (Accepting cargo for transhlyment) Kobe/Puran 'and Kobe/Okinawa)

EVERETT STEAMSHIP CORPORATION S/A Queen's Building, Telophone 31206, Chinesa Department: Telephono 28293.

BUSINESS REGULATION

ORDINANCE · 1952

Copies of the prescribed, Forms 1 (a) 1(b) and 1 (c),

Now On Sale at S. C. M. Post, Ltd.. HONGKONG AND KOWLOON,

TEN CENTS EACH