RANSPORTATION
AIRLINES ARE ALL SET FOR FARE-CUT WAR'
By PETER WOON
THE plan of British European Airways to slash air fares in Europe by up to 3s. in the £ next year is to be debated by a special committee just
airlines--which formed by world engaged in a big battle over fares. The BEA plan goes before the committee at its first meeting -in Paris next month.
Already this plan, aimed ก
are
now
extending the tremendously
economy BOAC Comets To Use
successful no-frills
class" service operating on the North Atlantic, has won con-
siderable backing from other
go-ahead airlines.
BEA in now converting 24 of its Viscount aircraft from 47 to 03 beats and scrapping luxury meals galleys lo ready for the new service.
and
Accurate Navigation
TROLLOWING comprehen-
THE CHINA MAIL. WEDNESDAY, JANUARY 21, 1959.
OIL:
by
JON KIMCHE
THE Arab "oil technocrats,' THE
as
the oil advisera to the Arab Governments call themselves, are about to launch what they call "the decisive front" in the battle against the West.
The offensive has been planned in great detail in a working paper which will be the basis for the Arab Inter- Governmental Oll Conference in Cairo in a few weeks' time.
The paper-circulated to all Arab Governments-was prepared for the con- ference by the Saudi Arabian Govern- ment's oil adviser, Osman Halik. It is one of the most sensational and revolu- tionary documents in the history of the oil industry.
For Halik sela out to do what no one else has yet achieved: to calculate the actual cost of producing Middle East oil and the price obtained for selling it.
On the basis of the 1958 figures the Arab pay claim he has
Frials carried out in bea Comet 2E, Boac have de- cided to equip their North Atlantic Comet 4 flact with equipment. Decca/Dectra Boac's decision to fit their Comets with this component is the result of a long evalua- tion carried out over the tho United Kingdom and
the Atlantic By North manufacturers.
The Decra portion of this Decen/Dectra combination pro vides accurate navigational
fur short
range information operation that is to distances 300 am-while Decira to
Jong range Coverage
United Kingdom Egypt, and Bahrain),
But the British airline chlets know they have a big fight nhead of them. Attempts by BOAC to introduce economy mervices to the Far East Africa have been blocked.
The trouble Is
Fome that marginal operators claim they cannot afford cheaper fares.
Under the rules of the air. lines "unler," the International Air Transport Association.
must fare declsiona animous.
be un-
Now there is a move to work by majority votes instead,
Joint Shipping
Company Mooted
Tokyo, Jan. 20.
between the
ond Cinada.
ing feature
apart from
puistand-
A most outs
of Decca/Dectra,
its extremely high
pccuracy, say the company,
the fact that
i
the geographical
A
is prepared demand for £900 million on top of the $150 million which the oil companies have this year paid out to the Middle
East of producers (Kuwait, Saudi Arabia, Iraq, Qatar,
Profits
position of the aircraft holy The Arab claim is calculated continuously. It is automatically
on the following bosist
traced by a pen on a moving
chart.
This form of presenta- 1s valuable in busy terminal areas such as Londem
York, and New
say
A JAPANESE shipping fin- terri
concluded a Con-
tract with an Indonesian manufacturers. Shipownors' Association for FUEL PENALTY a joint venturo to create a shipping company in Indo-
nesia,
by
It costs approximately 25. td. to produce a barrel of oil (nhout 42 gallons) In Saud Arabla er Iraq.
the
2
the
Figures prepared company show that jet aircraft must climb to and descend from their en route cruise phase with
to are
be
Mr Masanori Kitamura, Pre- the minimum delny" If heavy sident of the Toza! Steamship | economic penalties Company, said he signed the avoided. The fuel penalty for contract with the UNI Peru-a typical Jet is approximately Kahaan Pelajaran Indonesia
1,000 pounds per hour for each (UPPI) In Djokarta last week 4,000 feet deviation from the
www subject to
the optimum altitude. A 2,000 feet approval by and Japanese gov-stepped cruise between London
and Gander
will
cost approximately 1.000 pounds of fuel, which could
mean five fewer
between passengers London and New York.
Indonesian
ernnemis.
be
The joint company wi}] capitalised at 12 million rupiahs which will be put up by the Japanese company and UPPI on A 60-50 basla Mr said.
Mr
Kitamura
Dece?, first used by the
the aircraft, sold
Kitamura Royal Navy on D-Day, is now fitted to almost 5,000 ships and including all pe Viscounts of British Japanese investment would VID
their Airways and take the form or a freighter, the 3,038-deadweight ton Tozal feel
Shortly to be introduced.
usual for Maru which would initially It has also been
period
on the engage in inter-island trans-considerable
archipelago,
Silver trans-channel ferry of In the portation
and Later on the firm will charter City Airways
vessels to start other operators, + few more
Its connecting Indonesia Dectra,
long-range services with Singapore,
evaluated Bangkok, partner, has been
over the North Atlantie for the company will past 15 months by the Ministry
number of Supply and by a number of
new civil detines in to the
cddition to Boac.
Saigon and Rangoon.
The Japanese also supply a certain of ship officers Arm-Reuter,
Vickers Vanguard
Flies For First Time
Woybridge, Jan. 20.
The average selling price of
a barrel cứ this oil in thẻ
I have seen
the document
that will shock the West
COMMONWEALTH, IS STILL UK'S BEST CUSTOMER
Franca
W. Germansy
E. Germany?
Russia
| TOTAL:
Imports fromƏ
£92,889,555
£123,505,507
(Exports toJE
£65,386,077
£112,280,160
£2.983,141
£2.132.117
£55;297,645 £21,457,860
*7*.⠀ £274,675,648₤201,256,214
£276,660,269 £172,698,362
Canada
Australin
£174,865,547
£217,250,374
Now Zealand
£149,111,027
£120,741,871
£600,037,643
TOTAL:
To reccrmend that the oil pipeline concession to the American TAP line which owns the pipeline from Saudi Arabia to the Mediterranean should not be renewed; and that all oll pipelines in the Middle
£510,690,6073
Australia Tops List
THE "league tables" of Britain's overseas trade
show that the Commonwealth countries are
East should be turned into still their best customers, despite the efforts that Arab utility companies. have been made to expand trade with Europe and
the Soviet bloc.
(b) That the Arabs should
establish their Accts.
own
tanker
set
But more far-reaching are the remaining three demands out in the documenta which are to be considered at the April meeting. These are:-
THAT Middle East oil should be refined in the Arab countries by Arab companies and not in the European consumer
countries.
to
and EAST EUROPEAN Chinese concessionaires should be permitted
partici- pate in the marketing of Middle East oil, with Arab participation the profits of the entire
in
Persian Gulf is approximately marketing process.
159, or a fractien under.
It
AUSTRALIA, with population of fewer than 10,000,000, buys nearly as much from Britain as the United States docs.
Australia took delivery of £217 million worth of British goods In the first 11 months of last year, according to latest Board of Trade figures. The Unitee States spent only £28 million more in Britain.
CANADA ranks as our next best customer. There, thev earned dollars worth £172 million by hard selling in the face of tough competition."
the
United Stotes
Both these totals are sure to nse to staggerng proportions as the rich resources of these two
cuntries are devolped.
CUTTING the selling price of A falr average profit is Middle East oll (which is * therefore, about 123. If any present artificially high so as thing, rather more) per barrel. not to compete with the pre-
vailing American selling rates) Not far behind in importance Lasi year 1,500
She million
NEW ZEALAND. to a mere natumi level and so les barrels were thus sold. enable Middle East oil produc-bought £120 million worth of nctiing a preft of £900 million. tion to be increased because liour products despite ripart Half of this went to the Arab would become highly ecmpell-restrictions. producer countries
and the tive. other half to the oil companies.
But the working paper for the¦ all conference claims this is only the beginning of the story.
Speculation
ON every
barrel that
Upheaval
IT seems
Arab
CONTRAST
What goes on in Europe? Tho, graph (above) shows that almost certain that Britain's exports to France, West
Oil Conference will accept all | five reccetmendations-probably is with some adjustments.
refined a further profit of It is equally certain that the
7. 40. is said to be made;
is
In fact,
will
On overy barrel that is trans-demand for more money
also be pressed-even if there is ported either by tanker or pipe-
going
bargaining to be hard by many line, another 1s. 6d. profit
made; and,
finally, in the about the actual sum involved."
the product marketing of
the Western world another 14s. 8d. profit is made faces a major upheaval in the on every barrel.
of tho wholo structure This makes another 24s, proft Jcdustry. per barrel.
this, Halik gues, the Arab producers are entitled to their fifty-fifty share,
time
For these live
ol
demanda
Because of its characteristics and accuracy the use of Decca/ Dectra, say the manufacturers *ll!! enablo aircraft to be rouled enfely on closely
at the price structure of the separated tracks at close to colimum altitudes. In this way A good deal of it Reems entire Industry.
and the extravagant alllude restrictions which now to be based less on exact
Thess developments may con than on imagia. affect events in Iraq. The Iraq and calculation
Petroleum Company is the first The let to be tackled. In (The live speculation. For the on
Bagdad preparations are going never ahead with the RussianS
the Chinese for F these take-over bið
This works out to another strike at the cash basis, at £900 million for that year. It
will be rather more for 1959. the ownership, and above all,
So much for the basic arith- melle.
apply can be avoided, thus NEW glant British air allowing A not claimed to be cup-nical operation of all alre
able of cutting
tares in craft to be maintained.
Europe by up to half and in Decca Navigator Co. Ltd., Decca al companies have
America by up to 30 por cont Blow for the first time horo today.
It is the Vanguard,
House, Albert Embankment, Loudon, S.E. 11.)
139-senter Vickers Nato Maritime
medium tange
turbo-propeller aircraft power-
ed by four Rolls-Royce Tyne Conference
engines.
The Tynes which are in the
5,000 home-power
clasa,
will
Washington, Jan. 20. CONFERENCE of Nato maritime nations, and the United
give the Vanguardo Dn initial cruising spoed of 425 miles per Syedan
£900,000
provided Any
to
figures. They assort that they Bre Impossible
estimate.
Tankers
QUr it is doubtful whether
Crisis
and
decisive
ore
TUOSE
the In
know certain that it will cemo in che than two years, and remo convinced that it will be ATO considerably less than that.
At present nothing is being
the
the
Russia in
same period only just TOGETHER totalled over £200 million
France, East and West Ger- many and Russia sent Britain
£274 million worth of goods'
Wall Street Prices Move In Both Directions
New York, Jan. 20. Stocks closed today on a late ticker with prices
moving widely in both directions,
HONGKONG
STOCK EXCHANGE
Our Own Correspondent
Dupont, which had recovered
ค carly, loss turned down. Some others gained strengin, notably tobacco, selected nir- crafts, olla and steels.
A.
M. Byers ran un mare than six points at its best in the steels. Bath Iron Works was up three in the shipbuilders. Easimon and Firestone roso two. American Telephone lost two and Youngstown Sheet & Tube nearly three points.
Rrilroads presented A fiz tone. Standard Oil of California starred in the dlls with a rise done on the Heng- of more than two. International konz Stock Exchange this Nickel lost a point while Ameri- a point.
approximately can Smelling gained quotations and Many specials rose or felt a
transactions point to two points.
Busincis
amounted 10
$289,000. Neon
the morning's
Buyers Sellers Sales
603 815
were:
Bhares DANKS
18 Bank INSURANCES
SHIPPING Welerboat ..
Wheelcek DOCKS. ETC.
what
Dock
22 . 73
23.10
5.50
5.1
100
11.50 12.10 500 2 12
HK Kate) 23.30 231 1630 67 21.43
30
15.00.13.J
400
39.
183 1823 10000 or 1.50 10095 150
LAND. ETC.
a
healty
Humphrey
RUBBER
Amalg
1.225
Trust
A. Tawah..
Sungals
1.05 2.70 2.43
2.70 5000 #215
UTILITIES
Tram
1.00 1000 or 10.25 5000 or 1.95 20000 * 1.93
Star Ferry 30.80 27.10 Yanat
Contrast this with the story from the Commonwealth ecun- Electric (0) 25.50 25.70 iries, who are among our min suppliers of bal und raw Tel* materials, The
Dairy
(N) 24.10 2430 300 124.20
graph shows INDUSTRIALS
Cement that Canada, Australia, and
STORES, ETC New Zealand. together sent Britain £600 militen worth In the first 11 months of
1950. London Express Service,
British Car Production
London, Jan. 20. British cor production passed the "miragle million" mark for the first time last year, it was announced today, with 1,051,501 cars made compared with 800,- 842. in 1957.
Exports increased from 420,- 277 in 1957 to 180,816.
Truck and bus production rose to 308,727 in 1958, from 284,110 the previous year.— U.P.I.
Watson L. Craw
J
Closing Prices
Eastern Airlines
Gulf Oil
Getly Onl
Alden Ine. Agency American Airlines Commercial Credit Commonwealth Eleo. Minnesota Mining Pittsburgh Plate Glass Stokeley van Camp 25ission Development Reynolds Metal
Sterling Drugs
Ford Motor Alled Chemical Alliachalmers American Metal Am. Tol
Tol
Am. Tobacco Anaconda Baltimore & Ohlo Bethlehem Steel Catuadian Pacino Chrysler Corp. Conrolidate Edison Eastman Kodak Stubebaker-Packard Swift Co. Texni Co. Union Pacino United Aircraft
157 100 13.11 10.23 10.48
200 G 1040
600 of 10.20
800 64 25,63
1500 12
25.10 231 21.00 10.40 10 13.50 13.00
23.30
23
16.30
US. Smelting
14 245
COTTONS Textile Nanyang.. 0.70 MISCELLANEOUS
VIDO
INVESTMENTS
Allied
10.30
.... 3075
$1500 $4
Exchange Rates
Business was done In the local morning at the following rates— unofficial
this exchange market
5.75
19. dollars (per $11_averen Sterling Gates (per £!! ....... 15.95 Australian notes (per 411 Indonesian rupiah (per 100) Siam tiesla (per 100) Singapore (Sirato)
12,70
0.21
20.90
1.82
Agreed Merchant
Rates
Belgian Selling 881,
France. Maximum
COMMODITY PRICES
FOREIGN EXCHANGE
LONDON
Closing rates were;
New York
Montreal
Amsterdam
Drumels
Vienna
1,80-11/16-1.80% 2.71-8/10-2,713 10302-105812
14035-14040
20.0131-70,02 72.10-72.81
Others unchanged.UPI,
RUBBER
LONDON
KUALA The rubbar market steady,with spot quoted at 20% pence per lb. Prices:
No. 1 a pot. 2516-139% Exttlement house term:
yeb
Mar.
April/June
No. 1 rubber per 1b. Feb
4755-19 Mar. 100% No, 2 rubber per tb. Feb. 13-16%% No 3
Io. 4
**
Spul rubber unhaled Flankel erepe
No. 1 pale crepe
AMSTERDAM
031-85-A
8314-04
07-67%
78-30 8944-9012
METALS
U.S. Cyptopi US. Rubber
US. Steel.
Warner Bros Westinghouse Exce Woolworth
CHATTER
ON WALL STREET
New York, Jan. 20.
Ralph Rotnem of Harris,
Upham & Co., notes that to buy $100 dividends one has to invest $3,200 to. day, the highest figure in the 30-year recorded history of the stock market.
The stage
for a significant reduction in copper inventories
two
during the
which months result in price according
metal,
Williston & Beane.
next shoult!
rise in tho to 3. I.
Timken Roller Bearing & Co.
stands to benelt
covery in demand
furm сага, other vehicles
from a res
for motur
and
machinery
requiring anti- bearings, says blowers & Wecka.
NEW YORK Priers of metal futures closed | friction today as follows;
Jap.
The rubber market was firm today. Prices closed in guilders per kilogram, clf February follows;
Mar.
05
**
Zind
Jan. Mar. Copper Jan.
Mar. Jan.
Mar.
LONDON
No. 1 rubber Nu, a rubber No. 3 rubber No. 1 crepe
2.47 paki
2.45 buyers 142. buyers 200 buyers
-1,P.I.
COTTON
LIVERPOOL
Cotton
futuro closings, in pence, per lb, were as follows: American Contrset
STRENGTH
11.540
11.53
10.800
10.03h
24.01
20.25%
with a year
While a slightly position today
may burn
Horn-
larger cash AE compared ago at this turbo A hole
in your pocket and have you in a Les favourable psychological mood, Price of metals closed today it is still worthwhile incurance in sterling per long ton as fol- at this
lows:
tin
spot
-month
Copper
Spot
3-month
Lo and Italf
Jan
April
Eyer Bellera
stage, Becording Internationai Blaustical Bureau
Blandard & Poor selecta Manufacturers Trust Co of New
of the 783 York as the stock of month.
Investors Advisory
76215 763
703.
27272 22015 Бау
22016
has tender in the
Service AVETASCE
to obscure the fact
719 that many stocks have had Nat.
downward price trends for many weeks and in
1135 or
2392 7311
2200
Apol
715
Zine 2nd halt
Mar/April
22.84
Jan.
74%
May/June
27.03
2515-250%
July/Aug.
20.10
Oct/Nov.
20.05
2515-20
Dec./Jan
£0.00
20-7056
Mixed Contract
Jan Mar.
JAD.
j'eb. Mor.
20-06 2011-2012 General insckets, elt bali, porta:
Paasbruger
251-3%
Mar/April
23.33
May/June
July/Aug.
20.03
Oct/Nov.
2006
Dec/Jan.
18.03
Želate crepe ihin
Tab.
Feb.
201
14
NEW YORK!
ed today as follows;
July/Bept. Ogt/Dec.
hour. Later Tynes will step States is expected to convene dier protests will be hender done to interfere with the IP.C. this cruising speed up to 450 here early in March is dis- in the Arab world, however op-rations, for the Iraqis and the thoir friends want to take over miles per hour.
cus "flags of convenience" convincingly stated, een
in the going echcom. a double ship and other problems, working paper take roo Designed
arguments presented with bubble shaped fuselage giving officials said today.
This, then.
the art And icy have already begun spacious freight capacity on lu
They said a date would be to do
- at the Arab Logues loomug c in the Mittate crepe thick lower "dock,"..., the
erjain
of the of Vanguard is produced by the fixed when the US delegation Looming Comcil nesting in Mast
world- 10 with all Inchiatry tho Inter-Cairo recently. A special oil makers of the Viscount, world reflitri
airliner Governmental Marlume Con-mb-committed took
up two of wide ramifications. 4 turbo-prop pioneer which has been in regular mir- millalva Organisation meeting the demande núvanced in the
In the West prepared for lite service aśnice 1953.
Just ended in London.
working papÈT. con- The officials said other prob The piber The new Vanguard is
three are to be it this time, for it might well be discussed would gonbidare. try the full inlet- sidered particularly suitable for Inne to
1,000 involve restrictions by theloveonatal conference who make Suer seem like a minor passenger flight up to
les, but it bar ewry full loads United States ch foreign aidi | 11 morle esely in Aptăm
from
wo fights me to 1,900 miles, *** | cargoen hatlied fi forefen klupa.. The kwa pokrsta diepted as that side-show? Raster.
'week's conference sera
-UPL
|
BINGAPORE Prices raised slightly at the opening
thereafter, the
201
makes was quietly steady with minor quctuations.
Thege was a jóod interest for lower sheets kui kilitosan tricted by reserve of ́ sellent.
Prices of cotton futurea clos-
Spol:
23.45 ; Mor: 24,33} May! HAD; July; unquoted; Ort: SET: DO 33,62; Marz 34.99; May: | size; July: 31,26.
NEW ORLEANS
SUGAR
New York, Jan. 20. Sugar futures closed today ex follows:
Contract No. 4 (world) Mar: 3-20; May: 125; July: 349: Bet 3.18: det: 3.30; Mar 130 MAY: 33. Total raięs, kto contracte, Neok price trente per jetep Cube)
slowly
some cases for three months.
MAY EARN
MAY
New England Elbottle earn 1.29, for 1938 againe 1.22 for-1902. There is a prospect of an increased dividend for 1930, according to Francis I. Du Hent & C.
According to Clark, Dodge, de Cox, the list having approxi- mated 600, there seema ample reason to believe the market is Ita hormal about ready for January reaction,
Analysing tililles, United Business Service mike how the stiendi “are eachings guing being Contract No, é (domeutic) · Mari, 101: MAT? LET FILE: 61 discounted by the current ma Bet: $10 Novi: KILỷ Trinh gúteket mid how much of their dəv
Bruke torta-U.PII.
Prices of cotton futures clon. | 3.3. Open Interakt) 2007 contracts. ed today an follows:
1402
inkerert: 1,200 contratta,}.P,T,”
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