1956-08-13 — Page 9

1

TRADE

← THE CHINA, MAIL, MONDAY, AUGUST 13, 1956.

and

COMMERCE

Suez Canal Crisis Impact On

Oil Industry

MORE ATTENTION WILL BE PAID TO

NATURAL GAS RESOURCES

By HARRY W. FRANTZ

Washington, Aug. 12.

The Suez Canal crisis, even if amicably settled, will have a tremendous and revolutionary impact on the petroleum

Weekly New

York Stock

Market Review

By Elmer Walzer

New York, Aug. 12.

com- The stock market munity tried unsuccessfully last week to rationalise the seriousness of the Suez Canal situation.

Market men sald for a time that the inflationary implications spiral of the steel wage-price woul | off-et the Suez Canal ex-

industry of the entire world, according to government experts propriation and help the markes today.

An early reaction will be greater attention to the natural gas resources in many oil-producing countries, it is said.

The mere possibility that the Eastern tal situat an

ti traffe through Canal might be

Last

some "X-

o new record highs.

The market it but followed their thinking. The dustrial average crossed the old April 6 record high on Thursday but The close. bucked away before That

aleg with the Avvengo

Bower

mught he [35 000,000,000 or 42 per cent of rails at utilities closed

total. world Suez under på litirul chetids for a lung th le

on the week. Interrupted | pod at feast until the Saviel further explorations,

orea in Russian intention in the tabert

ae mere clearly revealed Trap. 16>12017!.26

surred

Enject

strategical,

technological

world vil situation

About $7,000,000 tons of

moved nor fabound Tha ough

Suez Canal in 1955

41

d

alternative

transport

industry

possibility

The

1

Although

be

Tayed

on,

routes

打官

baghet

اده

**

her think, may represent about one-half of the world total.

Consequently the mere possi - wasbilty of a future shut-down on the oil transportation "hite line"

The Middle Eastern petroleum. jeturs 10 1954

1013.545.000 barel 149 20 31

per cent of the worl to proat Suez sunt a shudder through ductum at 4,980,476,000 barrels the petroleum industry

that year But the proven vil "reserves in the Middle East

Far

the petroleum | pricipally

necount

Ite

of the

Middle

Batas ti Kuwint Alba are already eshiticted at

trag. Saudi

America Thinking About Trade

With Saudi Arabia

By HARRY W. FRANTZ

Washington, Aug. 12.

commerce

The large and growing

States and Saudi between the United Arabia is among the factors which influence this country toward a moderate course and an amicable settlement of the Suez Canal crisis.

Natural Gas Exporimonts

It was the first weekly decline in utilities in nine weeks during which the average had risen to new high since March 26, 1931. Halfrond shares were still under the intuener of the steel strike which cost them a lot of proths. fur J plen in wage hike

freight bigfter passenger An expert told

United rates. 1

The market analysis Press that one after-effect of Surz will be a generat speed-unit that at current jev je the experimental programmes for market was in delicate territory. the liquetartion of natural gas. Many traders, they noted, aze 2013! thurt at an be transported on tanker Та

in demand has to be very high to natura. gas

an-keep the rise moving. mary oil-Belts. where it

Ponted

willing to sell for profits

There were many favourable ww wastustel few unfavourable in the

nt be pire to metropolitan areas ferumpalion,

Y

ed The future holds possibility week's corporate news, ad great international trade in EARNINGS REPORTS

hund products from gas.

processes

Bro

and

The technical problems in the aquarfurtim ace largely solved, but the

and trans- portal.on

hazardous, stil in stage of experimenta- 4:01. Evaluations of the safety hazards are presently in pro-

source

14

of fuel

will

become

Several corporations issuext highly favourable first half year including Chatri Mm-

rigionis.

emmalages Crucible Stee, American & Cable, Curtiss-Wright. ken Roller Bearing, Unitest Air- craft, and ('oen-Cola.

General

Was

Indonesia-Soviet Trade Pact

Djakartą, Aug. 12, Indonesia signed a trade agroċtment with the Soviet Union today,

Delaily were

Bot

dis- closed,

However, the pact was halled

as a forerunner of ruture negotiations for ex- change of Indonesian rub- ber, copra and other raw materials for Soviet goods and technical ald

The agreement was signed of by Acting Secretary Foreign Minister Dr Hubandrio and E. F. Semiclasknuff, Soviet Vico

Minister of Trade.

A

the spokesmani for Foreign Ministry sal that Soviet representatives will vidt Indonesian country- sido and

upen perhaps further negotiations follow- ing President Soekarno' visit to Rusia. Enlled Press

HONGKONG STOCK EXCHANGE

Business

done on the Hong- Rong Stack Exchange this mom- jing amated to approximately

NOCLI

qulations ani $1-40,000. the morning's transactions

Kitures

BANKS

Buyers Mellers Xater

HK Buak INSURANCES Unien Lombard SHIPPING

1849 150

sao

4312

9.00 NG LEKKU.70

61

14

14:50 1440

SECTION

Middle East Affects US Business Week

By JOHN MORKA

New York, Aug. 12.

The impact of the Middle East crisis over Egypt's seizure of the Suez Canal continues to dominate the US business week.

International oil stocks and com- modities moved in wide price-arcs this past

week in line with tensions in the Middle East.

گرده

in

Little Affected

Page

NY COTTON

MARKET

REVIEW

By William T. Plunkett

New York, Aug. 12. Cotton futures rose sharply last week despite higher than expected government crop estimate.

Q

A Friday's close, the list ruled

18 to 63 poils--80 cents to 3.15 a bale-higher than last week's closing prices.

and the

The first two sessions of the quiet as traders week were largely routine awalled drop extimate. Distent deliveries.

however, provided

some inter

est, showing substantial gains on Increased popularity of the soil bank. Many in the trade feet the sult bank next year will be more effective in redueirut cot- ton acreske.

PRICES DIPPED

ex-

Oll sucks steadied somewhat } per cent, with tanker space cur- at the end of last week as the tailed by the longer voynge initial shock of the yptian around the Cape of Good Hope. seizure lessened. But weekend Kuwait and fan would be the Wednesday's crop estimate at

British developments -- notably

"mast severely affected " This 13,522,000 bales, well above the and French

militory prepara- would involve mainly

British average 129 million bales anli- Plots for a possible action Petimleum and Gulf Öll. The cipated in cotton eireles, failed the Middle East-dampened-latter owns half of the Kuwait stir the market to any temparlly hopes for a peaceful concession and a 7 per cent in-tenl. solution

the International terest in the Tranian consortium. controversy.

Prices of leading commodities and oil stocks reflected this Dil rising anxiety on Monday. (khures were the hardest hit in Blumping market. Stock- sprices had their biggest one- iday drop-6,39 points In the

Dow Jones Industrial average since President Eisenhower was stricken on June 8. Among the oils, Royal Dutch Petroleum, with Middle East commitments, closed at 100% off 6% points on the day. Guir Oil, with big holdings Jan Kowalt, dropped 87% points

[al close at 12732.

Firmed On Fears

International

commodities meanwhite firmed on fears saf and inter- shortages possible ruption 16 a steady flow of materials via the Suez, World sugar, rubber, tin, wool, grains and

showed copper-all

provement,

חוד

schedule did Decount

full

report Prices dipped on the but pressure was restrained by Standard & Poors reasons that general beilof in the trade that production of British Petrnicum, the government Itoyal Dutch, Sh:1 Standard not

take into of New Jersey and Socoay effects of the soll bank. By the from Iraq would b "relatively | Wednesday's close prices had little affected." In Saudi Arabia, risen as much as $1.80 a bale however, the Armeo Company's over Tuesday (American-owned} operations short covering.

would be more seriously duced."

re-

up-

תון

speculative

That was the extent of the impact of estimates and trønders Incentives were seeking frosh the following day,

The Friday session saw fur- ther speculative short covering which, in the face of a scarelly of offerings, added extra strength

the market.

"A 10 per cent eut in Middle East output probably would not be the serious for these coin- panies to bear, if it were not protracted. though earnings from this source might be cut 20 per cent or mere for a Ume,

The Department of Agricul- ture's crop "The foregoing

report mid-week probably

als indiepted the yield per nere the worst that could be "x-of liat cotton at 394 pounds of pected. However, chances

J. compared with 417 pear good that the problem will Aug. be solved without recourse in pounds harvested last year and an average 283 pounds over the such severe measures as pro-

last ten years. longed closing of the Cunal.

The

Bald Department

the yield-second highest On the question of earnings of | average

on record-reflects the farmers International Oil stocks. Stand-

on their ard & Pours was mosi optimia-efforts to grow cotton

despite of tic.

current political best land, to use more fertilizer uncertainties, Earnings or the and improve cultural practices

rise hle international Oll will

In in the face of acreage reduc- about 10 per cent

ortions-United Press. average

this year, more

It predicted.

21

There was thereafter a notice- Wheelock

able pickup

confidence ភ DOCKS, ETU

U.S. İnancial circles ae world Duck.... Pvident (0)

politica: Einders talked more of LAND. ETC.

1 peaceful solution and less HK Hotel HK Land

milltary action Heal

President Eisenhower al

the news conference expressed RUBBER

hope that good sense will pre- Amalg

vail in the Suez question, Bri-Demand in foreign areas is ex- UTILITIES Trans

Ush Prime Minister

Anthony Yaumeti

Eden

in U.S. consumption. Dividends subsequently

out 23.80 fell 0.38 Light (0) 23 40 2150

settlement.should also riso. 500 23.40 hopes of a peaceful 2000 23.40 And Indian Prime Minister 1000 in 3844 Jawaharlal Nehru urged Britain 1442014 and France

retrain to

from

was

Retrie

business news

including us favourable, When

}}xufh the

natural scen gas can be transported safely by resumption of steel muking with ankers. tremendouS πέν the steel rate up nearly 200 per cent over the previous week ixut available to the world, supple- 49 per cent under a year ago.

Desides On Monday the market mentary to petroleum. the natural gas which is found hard industrials moll-fields, there are believed points, widest break since June to be exploitable natural gas. Recouverita came in the en-

where suing three sessions, | supplied in many areat

Tel (0) petroleum

Un penduction

Friday, selling developed INDUSTIUALS again with the international oils Cement The Suez situation causes somewhat treomumpeat.

a

substantial losses and [STONES, ETC. A signbeant indiention of the showing

noted Dairy commercial circles uncertain feeling in the

tendencies *** inter-declining ELECTERISE

of the of natural through most

tini, Watson concerning volume of trade in coming months, but atal importative

Kus is seen in report from although closings generally were Lane Craw

above the day's lows- prior to the current crisis all reports and statistics Sau Aratno. In 1955, a grong well

United Press. had inspired optimism concerning the prospects of Un for a record year in 1956.

natural Ilus

Despite the uneasiness aboni | American

thous

Cv.) Oil

1F1

મ

618

of United States investors

ly be interested in Bye: industrial use of sur

from gas

The

in Saudi Arabian-American oil company

were 1,064,091

a possible temporury Interrup- | Arulna established in the month operations tion of traffic at Suez, which or May a new all-um, record The project was to consider would have polities]_ramifica= |Per vrúle petroleum production, the possibility of the ligorfae-

throughout the

with average of 1,121,208 ton of methane from the aur- countries, experts here are ex-barrels per calendar day. Pre-plus gas with a view to its snip- porting continued extraordinary vious reerd

meat at low Saudi

Arabia's burrets unity in April 1958. and Europe on especially designed progress cronomic development.

burrola This 1,041,008

daily in tankers. Results the Gogoliu

of will be progressively reflected | November 1965.

Lions are not known here, bul

eventually

1984.

Larger Imports

toon

temperatures tu

involve

Submarine Oil

un

oll

in

1.42.5 43

1.415 1 323 10,000 at 50

1.02

23 30 25 00

100

100

INVESTMENTS Vonkiwe Alfled

304 305

240 241

35 35

150

11 40 12

Sta

military action.

held

pected to outpace the expansion The Bank Of England

Statement

London, Aug. 12. The Bank of England state- ment for the week ended Aug. B, reads as follows! Note in circulation

Sterling 1,977,067,658

16,099,000

216,901,629

53,008,094

20,046,360

8.9

United Press.

Longer Term

The International OB stocks. 1000 10 30 25 Oil shares proyed and al-

viewed from longer term most

their regained

Monday standpoint, continue one of the 500 + 10.50

Stock market

Publie deposits prices 100 15 76 losses,

must attractive segmeals of the

Private depoalis rallied, recovering five of the six ind

Industry The flexibility of Government securities points on average. ist earlier.

worldwide petroleum operations Other securites By Thursday.

Industrial prices

ce of such units as Standard New Receipts in their average

Ratio.. were ugain Jersey, Texas. Standard of Cali- within touching distance of their formia, Socuny, Royal Dutch and hustorie on April 6-621.00.

Gulf adds appeal, notwithstand- ing the necessary exposure occasional political developments, speculative

London Market

Has Very

Cautious Week

By C. T. Hallinan

Menawhile, thirteen Inter- nationul of companies hold closed meeting an oil and gas hazard

last week with something of

interior department director,

Hugh

Stewart. to lay

to

to the stocks of all

out plans to deal with the Suez companies with important inter- situation. The meeting was held national ramifications."United

in New York and the particip- unts declined to disclosed the nature of their talks. However, it was understood that the con- ference discussed the whole questinit of action to be taken oll in the event Middle East shipments through the Suez are curtailed.

Petition Filed

Oll circles here feel that the United States has already map-

ped out a course of action should

in United States-Saudi Arabian This tremendous oll product report said that the project commercial relations.

WIN accompanied by a might Parallel with the progressive building construction boom In investment up to $100,000,000, development of the Soudi Saul Arabia, governmental pro- Arablan olltelds, United States grummes for civic improvemente Imports

In several elties, highway pro- Arubia In from Saudi

A second technological reaction have climbed from $2,481,000 in i gramines, sanitary improve-

London, Aug. 12. 1947 to a peak of $66,898,000 in ments and other activities which to the Suez Canal crisis will be

of submarine ju speed-up would normally leat to a higher

exploration and recovery

Markets had a short week-due to Monday's volume of Importa frum the United States.

many parts of the world. The bank holiday--and a very cautious one, due mostly renson is that such offshore

Middle East operations be United States exports to Saudi petroleum offers expanding to politicians and due to industry or finance.

stopped. The New York meeting that could in 1065, but the larger Imports Arabla have diversified with the sources in countries

The of consume it nationally-os of crude petroleum from Saudi markets for a wide variety

Oil shares were talked about incessantly and was said to have gone into the

problem

European of possible Arabla in Brst five months of automotive

building United States--or countries with

the question of certain lines electricni goods, and strategically

of the reckless ones sold them short, but the total chortages, 1950 foreshadowed a probable materiais,

and possible United new record for year 1950.

decline brought them no more than 15 per cent dollar shortages, example, has esti-

reorganisation of world tanker any break- Because of tremendous shipwitzerland and other safe for

uny break countries have offered mated reserves of 20,000,000,000 below their all-time peaks of some three weeks nects to deal with

competition to

in the barrels of petroleum

shore submarine arcos, poten- ago, and they still have the strongest following of down in Middle East oil sources. oil producers Aled a pelition tially chpable of recovery. With any sector of the stock exchange.

They declined to $59,957,000

ments of machinery, equipment

and miscellaneous

even

products,

foodstuffs.

materials for stiftening

But Japan, | communication.

The

petroleum development, United United States export traders,

States oris to Saudi Arabia

exports

Jongi exceeded

valuation of

the

imports, but the

trand in the last few years has been

॥

of crude petroleum,

in

In

In

1954,

Long List

re-

off-

10

to in the just five years, due

technical advances, it has be-

come practicable

the

30

some CO

nearly

Elsewhere eighteen

domestic

with the governced. Under

is oil imports be

could

"The

Press

Exchange Rates

The Bank Of France Statement

state-

Paris, Aug. 12. The Bank of France ment for the week ended Aust. 3, reads as follows:

Total gold holdings Tota1 other счет

recken

Sight balance abroad

in EPU

Francs 301,204,302,420

19,879,053.430

123,313,100,000

140,500,000,000

Advance to Stabilisa-

on Fund 0.00 Total bills discounted 1,438,791,308, 129 10.14 | Bank note in circula- 13.RO

Beinces

was done in the local thomclai exchange markel the morning at the following rates;

U.S. dollar per $1)... Sterling noter (per &I) ... Australian notes (per £!! Indonesian rupiah (per 1001 Slantical sper 100) Singapure (Straits)

tion **********.... 3.002.785,143.815 (4.90 Current accounts and 27,20

147,188,441,116 1.1

-United Press.

deposits

A NEW COMPANY?

From the word "GO".

place your printing order where you are assured of personal attention,

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of

20

From Articles of Association. Share Certificates, to Letter

asking that However, despite plenty of market, Old Consols-which

agreement, to recover bargain-hunting, the selling con- more than 200 years old were the reciprocal trade Industrial machinery $11,704.-

and

Impose three-six-the President TONG toward

and petroleum from 200 feet below trived to lower Royal Dutch wanted favourable 000; electrical machinery

sea surface, Formerly

and teenths to £51%, turning away quotas. should imports be felt £70%

to have reached point of merchandise balance for Saudi apparatus 54,434,000; auto-

This will continue aemobiles, parts and accessories can depth from 80 to 100 feet Brilish Petroleum nearly 18 from its 1956 low of £51. Arabia.

Injuring on industry vital to the was regarded as the maximum shillings

salatings to 144 United States expands imports $26,604,000

those nation's dotence. Importers have including

Blue chip Industrials, $4,815 depth for operations at ses. В репе

Shell Transport lost Trucks and motor

$3,013 passer This technical progress 19 12 shillings. Almost the sole ex-with a high investment rating been warned, to voluntarily cut

their down on

importa.

The United States gor cars 1953,

metal

manufactures

the imports from gaudi Arabla $2,803,000;

milf potentially of economic impor-ecption-excluding those like the were all slightly down, Tobacco down iron and steel

petition said that imports should tance 10 Venezuela and Trini Canadian issue,

Trinidad Oll shares were depressed by $1,142,000; air condi-

action of the government in re-equal about 16.8 per cent were valued at $66,890,000, and products

di-ded, in the Gulf of Parial and were the Anglo-Egyptian "B"

leasing retail tobacconists from domestic production, but have exports to Saudi Arabia wore toning and refrigeration equip to the Persian gult area.

shares which Improved,

some instead been running the rigid prices imposed

about $16,872,000.

mont, $3,328,001; aircraft and in the hypothetical event that rose £1 to £55.

time before. Brush-American per cent of production. exporta

were

$4,320,000; parts

meat products there should be a long inter- and imports

Tobacco, at 47/3d, and Imperial, were $504,000; dairy products

Suez Canal traffic,

While the closing of the Suca Obviously a lot of fishing in at 45/3d. are virtually at their ruption of 10,100; rice $771,000, wheat

"be considered would certainly many countries and particular troubled waters.

lows for the year.

catastrophic, American Anancial flow

of 1950, wheat flour quarter

tinned

nned by the United States, and Brazil $216000; United States Imports of crude

fruits and yould have a new motive to

circles remain hopeful that some What saved the sack from o

a good week solution might be found thors of Germans had petroleum from Saudi Arabia

exploitation barrels were 7,434,300

$295,000; rubber consider, and, low-grozis | Blump was the conviction that, with the Young Loan, both'alz (war or a prolonged. closing of $775,000, cigarettes their all-ahale

no matter how rude Sir Anthony sented and non-arsented, up £2 the Canal at $10,182,000 comparesi to

cotton manufactures così resources,

Eden and Nasser get in their and the Old Dawes loon non- Standard & Poors, Anancial barrola vaulet at

ayntheile fibres manu- Technical problems of exiraci mutual remarks, there will be assorted up £14** Several In January-March | factures

echoes the optimistic analysts, $1,203,000; #aw-mill

from, such areas have no war. Not even another Japanese lost £1 but Tokyo 5 note of many expert gbservers in ing Period 1980,

Woodmani boen products $499,000;

argely solved, but ex- Karagh-type war.

per cents which has enjoyed April, Imparte were factures $213,000 paper PIP: ploliation has not been practic-

persistent Buying. for several the United States. 11. And as 3,279,466 barroļs voluçus at duets

·lubricating oils aöle from en économie · stand-

Erratic

surance in the Wait industry's weeks, gained another 10/- flexibility in that even, the $7,989,000 compared to 2,682.628 59

products point. But if there would be barrels valued at $4,010,000 in

$223,00000

pipo volvės 3411,000 war, or o disruption

of Inter

British government stocks South Americang, were fairly Suez is closed other old sources April 1905.

petroleum, rehning equipment national commerce which led to were crutle but is general they strung The ordinary shares of are sill available, although ad- In

Importe May

were 3380,000

Tractors

the Chilean Antofagasta Roll- and parts barrels valued at $904,000; temnek-laying tractor substantiaflejri haber prices for were pressed, for- sale."--- 2,073,884

A Bucz close down would tr petroleum, tron the relative

| way robo" 2 and the Anglo- oudly only with (poniexs_p 37728,000 compared with $300,000 Industrial, chemicals costs at, producing liquid fuels Wer Loan 8 per cent lost Argentina Tramway Brat deben probably mean that production 2,060,500 barrels valued at $140,000 chemical specialties from bil-shalet: org cook might Yath to £70, very clowo to the fures gained 217 10 28233e from Kutul, Bitudi-Arshia, Iraq. Tema de Iran i andmother, Middle East $3,773,000 in May 1966 1,887,000 and molicinal and change sumciently to take low of 90th which it touched

Dollar locks were heavily, sources, would have to bore According toveh

official pharmaceutical products $407,000, commercial production feasible, last year. This huge Inruo hi

duced **United Pross

the dowitz- United Press. (ArabifarUnited Prem

an immenso influence on dispatch, Aramco-i

$400,000ass

ot

Headings and the many other ésser.cial Items, consult the Printing Department of the South China Morning Post, Ltd.

Call in at any time and examine specimena

of quality" printing which

sos shall be proud to show yới

Morning Post Building Printing Dept.

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4