1954-01-13 — Page 9

THE CHINA MAIL, WEDNESDAY, JANUARY 13, 1954.

Ava Gardner and her husband Frank Sinatra arrive at Ciampino Airfield, Rome, from Madrid. There have been frequent reports that they were to separate since their marriage

have patched up

their In 1951.

Junt as frequently there have been reports to my they

quarrels.-Express Photo.

Not only do they have to get the Abadan Refinery working_but:

ZAHEDI'S BIG HEADACHE

IS: WHAT'S TO BE

DONE

WITH IRAN'S OIL

of the problems ahead of the new Iranian This article from New York outlines some Administration in its altempi to get the Nationalised oil Industry on its feel after many months of inactivity. Not only does the Government have to get the vast Anglo-Iranian Refinery working order again--for it was frequently reported that under the Mossaderh regime equipment and vital machines were removed and the vast fleet of tanker-irucks re- Bríush and by hundreds-but they have to face stiff competition from American, dured European companies which are now producing all in excess of world requirements.

An

in the New York, Jan. 12. for the purchase of oil in tran develop all elsewhere

purchases Such American expert ini, by doing so, I would estab- Middle East,

in from fran might still be com- an unworkable ant world petroleum affairs. Mrficient operation which would mercially disadvantageous be- Walter Levy, recently said have

offrets cause serious

considerations, tax for for it should be possible

producing compensation obligations to the far- former owner, and other "men of good will"

tors.

ty

adverse

it in other

16 countries

6. The establishment of large

sale oil production operations 6. Such purchases by Ameri- requires assured nevess to stable can companies might raise prob- market outlets on a long term lems for Importing soft-currency basis. No one could afford to countries arki lead to prob-

In

achieve a settlement of the Anglo-Iranian oil dispute.

Tut

settlement would have to be in accord with the

Ciri the antie himself to an oil supplier in | lemy IN connection with the political realities

whose technical or managerial | level of output Americon- fional aspirations of Iran,

competence he would not have helt concessions, possibly in- complete confidence over a long volving serious legal complica-

finns in the United States. prin-

9. Neither from a supply and a commer- demand nor from cint or brood economic point of do American companies view. can

represent the most natural large scale customer for Iranian

oll,

the one hand, and the principles of the Western world und the comineretat facts of life, on the other hand," he said.

term.

7. Adherence to these Mr Lovy was for a consider- ciples is so baste to the progress able time in Government ser of world trade and of economic vico as an oll consultant, par-development that no Govern- ticularly with

Economie ment or Western Interests the

afford to ignore them.

Co-operation Administration during its control of foreign ald Now. from the United States.

h

is in private business in the Samo capnelty

by

"Specific Problems" but possibly they might agree

what

Mr Levy then defined he called "sprelle problems" in the Iranian situation as:

owned

to handle sizable quantitics.

Second, expand-

10. If and when Iranian oil He gave a long, detailed re-

exports should be resumed on a view of the British-Iranian vi?

substantial scale, they would, controversy at a recent round

1. Iranian oil has been com- in the first instance, probably table conference sponsored pletely replaced. In the world

replace the purchases which the Middle East Institute, which market by lorge increases In British and other companies has its headquesters in Wash-British-controlled and American- have made In the Western Ington.

production. There is hemisphere and from American After summarising the deve-

at present, even excluding Iran, com

companies elsewhere. lopment of Tranian oll by Bri-

an immediate surplus

they works fillet he produe- tish Interests in the 30-odd tive capacity

crude oil ed rate of British production In year preceding the closing of

Damounting to more than 1.500,-

Breas such as Kuwalt, And, the Abadan refinery in 1951, he 000 barrels a day pressing for finally, they would offert surveyed events, including the market outlets, and the Iranians American owned production legal fight which led the British have been warned of this deve- somewhat, as a result largels to abandon Abadan, and thelopment ever since the nation-of the reduction of sales by effects of this step on Iran's alisation. economy

and the company's Commenting on the position brought about by overthrow

Mosṛadezh i panies either reduce their outing to Mr Levy, must be cf the Government last August, he de- clared: "We are once again con- cerned with the problem of the re-establishment of oil opera- tions in Iran. Only in this man ner can the country acquire the necessary means to maintain its economic and political stability and to improve the standard of living of its people,"

2. The resumption of Iranian changed oil operations on a substantial

basis

would require that other producing countries and

the

com-

from

put, or at least abstain expanding it if the outlets for Iranian oll were geared, for the time being, to the expected in crease of requirements only.

American companies to British and other customers,

TRADE and COMMERCE SECTION

Markets & Employment May Be Bigger Problem Aden Refinery

NEW YORK

STOCK

May Start

MARKET Than Dollars Soon Before 1955

New York, Jan. 12. Stocks added nearly $1,000,- 000,000 to total market values today in their first advance in five resilona-a rise led by rail stocks.

Gains in the carriers ranged to more than 3 points, lifting tho average for the group by $1,40... the widest percentage gain. In the industrials, wils, tobaccos, aircrafts, elcotric

appliances,

chemicals and a host of specials

had good gains, and the average was up $1.04. Utilities improved 23 conts, reflecting small gains.

лumerous

BUSINESSMEN NEED TO

KEEP WITS ABOUT THEM

By Sydney S. Gampell Router's Financial Editor

London, Jan. 12.

Aden, Jan. 12. A new Anglo-Iranian Oil Company refinery with 5,000,000 tons а year capacity, is expected to start operating here before the end of this year.

The total cost is estimated at £40 million

The cost is heavy but the AIOC belleves it will be justified by the saving in freight costs when the refinery gets going.

Tre refinery is being built in from this busy port and is nearing com- pletion

Caution and competition are the likeliest characteristics the desert 20 miles Volume, however, eqntinued of world business in 1954. With good luck and good manage- ment it may be a satisfactory year for the U.S. economy and therefore for world economy,

light, with 1,250,000 shares

traded,

The about-face

was seen as

a technical adjustment of an

servers abld.

over-sold market condition, ob-

In the alls, Shell ran up

Land Trust and

Texas Pacific Coal and Oll Toxas Paelite Amerada 11⁄2 each.

Tobaccos came back strongly, with gains of a point in Philip Morris, 4 In American Tobacco,

% in Liggett & Myers.

Steels were firm.

201

lows.

The

Stock NY bond volume was $9,750,000.

The

American Stock

WES change volume shares.

Dow Jones were:

closing

But at best it faces some difficult transitions. To negotiate them safely, governments and businessmen will need alert and flexible policies. of the year, for the first time since the war, the British Chancellor of the Unemployment may cause more anxiety than dollars. By the end

Exchequer and other finance ministers may have stopped worrying about dollars and be worried about markets and employment instead.

that

It was started early in 1952 after the British-owned AIOC had been expelled from Iran and its lant Abadan Refinery, which had a capacity of 25 million to a year, was closed

down.

REPLACING ABADAN

Singapore Rubber as posible to

Market

Singapore, Jan, 13. The market was quiet until towards the close when it steadied on little enquiry with

work had

An inspection of the showed that

no expense been spared to get the new refcery into operation as soon replace some of the loss suffered by the closure of the Abadan plant.

Tho site chosen is close to the Persian Gulf oil fields and adjacent to this ship bunkering port for vessels pasting through the Suez Canal,

A high proportion--some two million tons of the Aden re- finery's output will be fuck oil for the Adon bunkera. Mar. 8614-67 will go to East Africa. India,

Jan. 8696-561% Feb. 2615-60TE

Jan. 55-56

M

So far the United States is, tina and Brazil have applied having most of its readjustment some realistic remedies. They at home, and it seems likely to have already shown some results atoy there. In 1949 # Almilar in Argentina. They may help Of 1,080 issues traded today, U.S. readjustment mainly affect Brazil as the year progresses, 580 advanced, 229 declined and ed the balance of payments of

There other

countries and were unchanged.

and culminated

CURVES RISING were 11 new highs set, 9 new in the waves of devaluations of

sterling

and other currencies. For the U.S. which F the Exchange But nothing of that nature can pivot of the

the cconviny ol be foreseen in

in 1994. Later in non-Communist world, officials Ex- the year conditions may give express confidence that 1854 350,000 rise to rumours not of devalua-will rank second only to the all-sellers reserved.

Future closings:- tion but of up-valution of ster-time records of 1953, and averages ing against the dollar.

the business curves will be No rubber per i Given a reasonably prosperous rising again well before the end Jan. 12 year in the U.S., the outlook for of the year. Since a continuous No. 2 rubber per lu.

2017 the non-dollar countries would inflationary boom is ruled out, No. 3

pat be

quite good. Germany. Jørund would have been ruinous in

Spot unbiled 104.71 example, should be able to go the end, these predictions are as Blanket crepe 171.33 on regaining her export markets good as could reasonably be No. pale crepe

without wrecking Britain's.

expected. By and large, that is what has been happening. Cases of under-

In the aftermath of half a cutting and unfair competition, dozen booms which all bunched real or alleged. attract most together, the US. is in transition publicity, but they are probably from an overload to a reason exceptions.

able load-stepping down from Always with the proviso about abnormal to normal. So far, the

U.S., such countries +9 process has been orderly. There No. 1 spot Ras

Settlement house term: France and Japan should be is always a danger of the pen-Feb. able to surmount their remain-culum temporarily swinging too March ing inflationary problems with-far. Washington's most effective April/Tune out too much anxiety for their arti

ami-slump remedy may be tox Generni markets, cit basis, porta: balance of payments.

cuts. Washington undoubtedly Jan.

30 Industrials 20 rath

18 utilities

63 stocks 48 bonds

Comm. future price index

62.00

-United Press,

New York Sugar Market

New York, Jan. 12. World No. 4 sugar futures closed today unchanged to 1 point lower with sales of 50 contracts.

Domestic No. 0 sugar futures closed unchanged to one

point con- lower with sales of 196 tracts. Future closings:--

Contract No. 4 (world)

March

May July

3.30h 3.206 3.290

September

3.30b

March (1935)

3:80n

Spot-cents per lbs. fob Cuba) 1.70

Contract No. 6

March

There are also clher "Import- ant conditions" which,

accord-

ab- served if the Iranian oil opera, tions are to be resumed large scale.

May

July

September

on A

the

No. 4

40-47%

45-06 United Press.

LONDON MARKET

London, Jan. 12.

The rubber market was quiet with No. 1 Ras spot quoted at 17%. pence per lb. Prices

July/Sept.

Some of the Latin American has the will to avert any serious h Mor. countries still have tough in-setback, since a depression might flationary problems but Argen-not merely defeat but destroyi

the

Republican Party. The con- sensus of unoMcial as well 214 offcial economists is that Wash- ington also has the means, it it is alert to apply them in time.

UNINSPIRING MARKETS

HONGKONG

SHARE MARKET

aro

17-171

17-171 17-171

1794-1762

LÚTL-17 101-17

1034-10%

United Press.

NEW YORK MARKET

More highly refined products

Pakistan and Ceylon.

British and Dutch engineers are building the harbour and an Américan' team of oil specialists directing the relinery construc- tion-China Mall Special.

Australia May Ease Import Restrictions

Melbourne, Jan. 12. The Australkini Cabinet If expected to agree soon to further New York, Jan. 12. relaxation of inport restrictions, Rubber futures today closed but the casing would be confined unchanged to 5 points higher to imports from the steriing bloc, with sales of five coniracts,· the Melbourne Ago said today,

The paper sald ̋rio relaxation The dull situation prevailing wez "Ukoly on imports from the In the market since the holidays] dollar orea or from Japan, show little sign of a break-up today, dealers sald.

The Soviet bloc's problems of economic readjustment probably more serious than those of the U.S. But they are Jess

Spot' No. 1 Rs were important to the non-Communist at 20% cents a pound.

5.45 (From Our Correspondent) world. Some of them have com-closings:

November Spot-cents per ib. cif Ny ex-

dock)

United Press.

CHICAGO GRAIN FUTURES

* HK Bank... 1080 INSURANCES

Lombard

Union

Underwriters

SHIPPING

Waterboat

56

BSO

..

Markets are likely to be un- Inspiring. Not having got drunk during the boom, Wall-Stocet has no hangover in the after- math great improvemnant on 1028,

Australian Miolsters would tell Mr R. A. Butler of their plan to ease restrictions at talks in quoted Camberra on Thursday, the Age Future | said.

20.200

20.300 20.30t

20,30b 20.200

5.03

pensations, as for example the

5,036

Business done

6.706

5.50

on the Stock way in which Russia's need to Exchango this morning amount-sell gold has helped Britain ed to $480,572.30. Noon quota-meet her burdeniome end-year Hans and the morning's trans-debt payments to the U.S. and actionis: SHARES BUYERS SELLERS SALES BANKS

March

May

to

July

Acpt.

Dec. March

20,301

Canada.

United Press.

Spot

2081

K. Whart

March 210%(H) 208% (L)

200-2091

July

Ztwy

September

200

200

2021

Corn, No. 2, yellow

be

granted and

IC-

Spot March

1341-14. May

154,5 July

150 September New York dour, 200 the

akck

$15.801 United Presi.

10736

foreign experts is needed to "A substantial group of

provide the necessary technica? 3. Even on this assump- and managerial Bltills," ho a sold. tion, there exista, for variety of reasons no largo "Such a group will face Q scale market for Iranian oil ranging for the adjustment of

most difficult problem in or in the Western hemisphere. the operations to the changed The natural outlet for sucli conditions. It will be respon- Then 'Mr Levy defined what oil is the Eastern hemi-able for the expenditure of a

and requirements great deal of money ever he called, "the general prin-sphere,

settle there increase annually by "This group, to carry out its operations can be resumed. In the ciples involvod ment." These, he said, include: only 250,000 to 300,000 bar-assignment, must

The

principle that nation-

International rela a day. alisation under law requires (In the absence of

1.

Seven Principles

A satisfactory agreement

the previous owners)

adequate the mere willingness major companies is small

pay without. the ability

to

pay

will not

fore

be

the necessary power sponsibility and must be free from political and any other un- warranted Interference.

com.

Chicago. Jan. 12. Clering prices per bushel in cents: Wheat, No. 2, Fed

4. The number of customers with in all-importing countries, par- prompt, ticularly of the Eastern heml- and effective com- sphere, not adated with the

and "This point is of particu-

lar importance as no to the volume of their sales do so being insufficient.

limited. The resumption of sub-pany would commit itself to

HK Bank Dividend 2. if foreign investment in an stantial shipments of Iranian the purchase of large quan- underdeveloped country is oll

oll thus requires co-operation

The Directors of The Hong- kong nationalised, the whole nation-with those oil companies which titles of Iranian oil over a

and Shanghal Banking alisation

that out only supply the bulk of the require long term if it did not have Corporation announce effort destroy the enterprise but may ments of the free world.

fron-clad assurances that the of the prosts of the Bank for also lead to economic and

5. American interests at pre- Iranian oil industry would the year ending December 31, po Ileal collapse of the caput Middle East production

sent control over 60 per cent of be continually operated by 1953, a final dividend of 23 per 3. Nationalisation can be

and

ahare (nett after deduction into effect only with the

roserves con- proven

(excluding a competent and absolutely

Hongkong Corporation Unued assistance of the previous Iran) as compared with about reliable technical and com- Tax) will be paid, leaving a

balance properties have 45 per cent early in 1951. Their mercial management.'

of owner whose

approximately been nationalised, and he would share in European Imports of

$9,875,000 to be carried for- obviously not be prepared "to | crude oil and products amounts - "While it is not possible to ward, The sum of $4,000,000 has extend such help? except on the to son

some, 37 per cent and in predict the course of the pre been written off Bank Premises basis of an agreement and of a European refining capacity to sent negotiations and the shape. Account. The accounts are still.

Buttlement of

Only 25

subject to, audit. of any final settlement, the re- 6. On the other hand, British view will serve to define reason- 4. In any case, 'the previous and other European Interests

clearly the likely aren investor could not afford to now own only some 40 per cent of negotiation, jeopardise his investment posi- of present Middle East produc-within that arenit” should tion In other countries where tion and proven reserves, as be pla posable for men of he may have Interest, which compared with about 55 per cent

have not been expropriated."

the

21s par

cont

nbly

•p to achiwa, an' usteo-

ROOK

In oarly 1951. But their presentment in accordance," with the

3. International oil ⠀ opera- | market share in European im- political resuitiers and the

tions are handled to A соп siderable extent through a few

Jargo Integrated companiow none

of which could afford to pro-

Fronte

DOCKS, ETC.

.. 10.00

Provident (0) 13:30 13:4 1500 (NÍ 12.00 1000 S'hat Dock...19 Wheelock

LAND, ETC.

8.03

HK Hotel BK Lund 70%

S'hat Land Humphreys. 18.30 Really

UTILITIES

*Tram

Star Ferry

Commodities range from PENINSULAR scarcity in cocoa and coffee

to

13,40 superabundance in wheat, cotton 12.60 and all.

8 0.03 2000

# 1400 B 10000

A

...

In general, the inflationary beoni having already

Koren

1000 905 been squeezed out, It does not 1500 0.00 have to be squeezed out again. in the more

2500

If things go

·77 30077 competitive wrongs, there is

1000 A 0.03

100 200 23 31.00

weather,

the

the

1896 7815 danger of dumping, particularly 1.40

of the U.S. farm surpluses. Given average 27.07% 4000 2.08

11000 2.54 8upposed restrictions

3000 7 2.05 wheat and cotton crops are per- haps likeller to enlarge than to ...... 27.00

49 241 200 14 reduce the surpluses. C. Light (0) 14.30 1435 1630 6.14.40

1300 14.30 All told, officials and business- C. Light (N) 11.50 1140 1000 11.80

1200 1130 men will need to keep their wits Electric ....20.80 30 100 2012 about them in 1854-Router,

1400 30. Telephone INDUSTRIALS · 27.20

Cement

.... 19.20 10.40

Hops

10. 10.00 STURLIS, ETC.

Dairy

20 20.30 300

Wated

Le Crawford CUTTONS

19.30 1000

500 10.30 1000 + 14.00

US COMMODITY

MARKETS

500

29.80

Textils, Corp, - 3.10 1000 MISCELLANEOUS

New York Cotton

Yama

cent and in re-national aspirations of Tran, onaren Buing capacity, hard and the principles ar

7. If American, oil companies of the, Western worldir; and the det would purchase. Irakian

· vide#tortutical Hirdo and malce price no higher that: that commercial-facts of Ting on the

at other hand. China Man

·transport and juurkota available which they could obtain or Bocciai

New York, Jan.12.

Jos

Pricens

11 Jan.

New York, Jan. 12.

It reported that Senator Nell O'Sullivan, Minister for Trade |zed Cunani, had recently been

discussing the position with consultative committee on imm- ports and senior officials of his deportment-Reuter.

& ORIENTAL

STEAM NAVIGATION COMPANY

R.M.S. “CORFU“

SAILS:

NOTICE TO PASSENGERS

BAGGAGE:

Friday the 16th January, at 12.00 noon for the UNITED KINGDOM via Straits, Colombo, Bombay, Aden and Port Said.

Passengers are requested to send ALL baggage to the Hongkong & Kowloon Wharf. Coʻs Godown at No. 2 Gate, CANTON ROAD ENTRANCE, : by. NOON on Thursday, 14th January, 1964.

Strength in import © Items SPECIAL NOTE: With the exception of hand packages

fentured the commodity tradings

today with cocoa' and' coffee in the lead:

200 143 100 /142

Domestic Jiems „moved årre- gularly, Grains closed lawer,

Exchange Rates At Chicago wheat closed off

art, soybeans off: 1%

carried by passengers themselves, ALL BAGGAGE must pass through the Wharf Co's Godown for loading on board by ship's slings only,pok "BAGGAGE COOLIES WILL NOT BE

TOL ENTER PERMITTED WHARF.

should

THE