1961-02-01 — Page 2

THE CHINA MAIL,

A HARD LOOK AT THE PROBLEMS THAT BRITAIN'S TRADE IS NOW_FACING

Have we gone mad?

By a correspondent

London, Jan. 31.

WEDNESDAY, FEBRUARY 1, 1961.

LONDON

STOCKS

STEADY

London, Jon. 31. Stooks hold In a narrow range today ds Wall Stroot's upswing on "Pre- sident Kennedy's Store of the Union message found

reflection

Are most of you mad, or am I touched by being too long in the African sun? Across that continont I found Ministers

little British balance of pay; and business leaders predicting a monts crisis this autumn due to the fall in our exports and the outward movement of foreign capital. They believe this fall in exports will go on until the end of the present recession in world trade.

1 In Thr Emerion-stre

This is serious, What is more foundi optlinin abounding serious is that Importa are not! People were saying that a new friling, and exports have not yet baon is eming: that the eco-staried rising. No wonder they nele signs are more hop:iul; say in Africa that it is not the and that shares are on their dollar that is 1361's weak eur- Way. p

rency, it is the pound.

That is al}

water over

the

What matters to shere dem. priera is the future. Here again who love the sunny side of life, see little to cheer about.

'THIS IS RUBBISH' Touch 4 by six weeks in the sun may be, but I think this Is rubbish. Not only nur py- ments position worse than it has bren for several years-it shows Cu central problem is that j atle sign of getting better. we must export more at a time In the fourth quarter at last when world trade la foiling, the your mort exceeded exports primary producing countries are commodities by £237 800,000. Allowing for earning less from "invisible" earnings from oil, and con afford fewer mana- shiping. Insurance, etc., we shall factures, and our rivals such as be lucky it nur deficit on all Amerien, Germany, and Japan, current payment for 1966 is car, mounting strong drives, to low as 150,000.000.

sell more abroad. Who, in- cidentally, will buy all theee

Not only do our reserves have 10 bent this, but also the cost of investing abroad and our foreign defence speading.

HONGKONG

STOCK EXCHANGE

Our Dan Casiespondant

goods?

L

OUR MAIN FAULT

is doing *The Goyertament

IJ re

promote very

is ro dynein that ersentini netreat be in Japan and Europ Kinisters still wait about hold- ing down wages, Ignoring that

in-

It is often the high wage dustries which do best in ex- Tot American and ports and that German Wige well ahead of curs.

The entral defect of Britain's effort as I have reported frous Soviet Europe, the Union, and Africa, is neither our prices nor our products. It is cur selling.

Western

La 1 Velozer, I suggested that realise this Rusiners done at the Hung- Ministers would kong Stock Exchange this morn-ventually and forecast honours ing amounted to approximately for exports and a substantial $5.000.000. Nuon quotations and cut in surlax to encourage cur the have had salesmen. We the morning's transactions:

my and Island by hopeir fortesat that we cha have an with cuts in incentive Budget direct taxes.

Even 50, as that able and the 841016 hard-working Preskient of

Board of Trade, Mr Reginald Maudling, said: "Exports are a

Hot long-teria problem,

Shares

11K Bank

Sales Buyers Sellers

1800 1810 175 1020

100 1310

14K)

NK Gan... 17.00 10.10

301810

51810

301810

90 1810

41815

Gesi 1803

404 1800

100 1500 224 200

100202

200 7419

Londen Reg.

Wharf

290

Taikoo Dock

74 745

200 or 74

2004 10.10

2000

18.20

1000

1020

11540

15.10

600 19

G000 18.10

Whecluck

.. 21.0

12 40000

1750 40 18

12

1350 12

1000 11.90

3000 6 12

1680 or 15.90

4000 11.90

200 125

300 124

100 G 135

Ick

324

123

27 27.10

300

27.10

500 27

Provident

500 27

HK Hotel..

42% 4294

Ex. Ris...

M

200 47 34

IK Land

Yaumatl

[New)

crisis."

a

We are in for no boom, but, with luck, a lang, dificult re-

covery.

CRISIS TO COME

This, and the heavy price cut-

ting in fridges,

TV scis, and other consumer durables (when cars?), means

Is it coming in

lower profits.

It

Now this is to invitation sell every shure you have. The Government's ham-handed

-

strictions apply only mildly to the whole economy, but fall very strongly on special tracies.

320 231 don't

No

NEW YORK

COTTON MARKET

New York, Jan. 31.

turned ro- Cotton futures

actionary after a steady start today, but overall activity was on the slow side,

After new crop March touch- ed a new seasonal high of 34.38 cents a pool, prices went into Anish decline, an irregular around the bottom and oft net 4 to 30 points on the day. New Orleans also closed 4 to 30 points łower.

Easiness was coupled with a 321

smaller-than-expected rise the January purity prices.

GOVT LOAN

The January, parity at 38.83 cento a pound was up 13 points Some traders from December. had looked for an inere se of more than double that much.

On Ute government loan, Washington advices said a lask force for President Kennedy re-i commended a cotton loan that would give the farmer the sante J. Craig Smith, President of prices that he received last year. Council, DI National Cotton Memphis, sold no indication of nny new cotton legislation, but sald there was no alternative but for the government to curb imports of cotton goods.--UPI.

World

rubber

market

New York, Jan. 31.

Rex rubbor futures today closed 10 to 5 points Tower with sales of 13 contracts.

The

trade As not large unough to develop a particular longer do share prices move up feature. Market interest was and down together,

foolt for some held in abeyance pending some While we can 1800 61 29.90

other new Incentives. The holiday at 1000 2 aubstantial falls Soon, 1500 27.10 trude such a fort, stores, and Singapore held shipment ofter-

200 227

ing to a minimum. Other offer- industries 500 422 consumer service

ings were too high to interes 500w 423 should do well

curreri Don't go throwing away good locul bayors. Locally,

month No. 1 R heaven's sake shares, but for

wes quoted KO rusniry Into 284 cents, raminal. market at these prices. The

Some

traders expected an the immediate shortage of shares, largely due improvement in

the basis of the to sell, on market people refusing bad news, has only delayed a steadier close at London.

Franels 1. Du Pont and Com- fall. The second

pany, commenting on the rubber market, sald "Fundamentals in this market continua gloomy as falls Lo show consumption improvement.

A03 E BELL

600 84

13004

134 3100 110

to

700 + 12

50 120

345 34 3850361;

half of this 1003424 year will see some bad company 1600 311,

results and the payments crisis

HK Tran

Ch. Light, 21.60

20

6300 | 20

2000 KẾ

11929.00 a still to come.

100 25

12 28.30

Electric....

30 2011

300 305

Telephone 401 4072

Telephone (New)

4.1. Cement

Dairy Form 3412 3414

Watgaut

Allied Inv.

40 0014

43

45

500

* 0,06 500 5.00

1000 +0.00

2000

19.00

Textile

L

155 7.00 3000

7,00

Nanyang

A. Rubber

... 12.30 181 2000 72.40

R. Trust..

Humphreys

030 0.96 €300 I 1.30

21.30 21.00

1100000S

1000€.03

1500 €16.20 8000 04 0.90 1030 à 6.00

Britain still biggest wool

exporter

London, Feb. 1. Britain still is the world's largest oxporter of wool tops but foreign sales in 1960 failed by 5 per cont to equal the record set in 1959, the International Wool Secretariat today.

on

In London, the rubber market closed slightly steadier with spot at 23-13/16 pence,

In Amsterdam,

the rubber

market was quiet today.

In Singapore, the market was closed because holiday-UPI,

U.S. Treasury certificates

Washington, Jan. 31. The U.S. Treasury an- nounces that investors wi be eligible to partici- pato in the February re-

on this

side. Electricals, steres, engineering and building issues were mostly on higher ground although steels! lost their carly gains and textiles and motors were dull.

Gold shares eased an the Proaldent's pledge to keep the dollar sound while tina and cop pers had modest gains, were irregular.

Government bonds tended to improve. Greek and Commun- ist Chinese bonds fell on prof!- taking. Dollar stocks wero mixed with US. Steel and Beth- lehem up 2 points and Shell off a point. UPI.

Closing prices

British Government Becurilles 2. Consolidated— £435.

mversioni-67-13/10.

3, Savings 1930/0390-17/32. Savings 1000/70-£77-1/18. 3... BAVIDE 1905/75-~70.

Overseas fonds

5. German Dawee) £195.

02. Jabato@q_

Banks & Insurances

Barclays Ord-081 04.

Chartered Bank-Gis.

Gurdian Aksuțaner--1215 3d. Honkong Bank-90,

nyde Bank~£72.

Lombard Banking Ord-17, 2011⁄2d. Otin

Aritish Peltoleum-Bla pd. Burnnis O-

Brval Dutch-£13-30/33. Ultramar Company-3 Gd.

Steels & Engineering Finbonok & Witeax Ord-dra GU. United Steel-601 0. Vickers Ord

Electric

Amloc. Bled. Industries--420. Flee. & Min. industries-431 PG. Faelish Bleetßle Ord-339 3. General Electric Ded-in 3d.

Industrials

Portland Cement-735, Dunlop Bubrer Ord-.9%, Unilever On5 10.

ardinon, Marden Ormű- 3). Morax (TitingN)—190 1ut Carrera "D" and Aid, Fine Spinner: Ord-30; 14120, Gilman aldia) Ord-31 GJ. Jaguar Cans Ord=818.

Mosa Empiret Ord–12s 7lyd. Redifusion Ord-402.

Standard-Triumph-10 1150. Wiggins" Tempe Ord—835 30.

Forestal 12 1364. Rubicon'd pay¬28-7/15. Westland Aircraft-168 34.

Chemical Monsanto Enemient Ord-231 100.

Imperial Chemical Ord-70s 4:a. Paper 150water Faper Orik-651.

U Run' Ord-Con.

Tobaccon British-Asner, Tob. Ord Imperial Tobicen Ord-004 10154. Moters

British Motor Ord-16s ̊7d. Stult-Raven Ord--42 93 Hawker Siddeley Ord-20s 195

Textiles

Calico Printers! Ord—145 1154. Conds 14. & P.) Orc40% Courtaulds Ord--is 754. Lancashire Cutton Ord-67 d.

Stores

Great Universal Ord-úña. Lyon (3) "A" Ord-05 104, Marks&Spencer "A" Ord-100 14 cor

Woolworth (F.W.; Ord-571 11⁄2d.

Miscellaneous

Bowmaker Ord-ala 146. Hongkong China - [54. Indo-China Def. Örd-24s Atad. Land Securities Ord-25,

P. & D. Steam

d

Nav. Det

Stall Theatres-03 151⁄2d.

Mines

De Beers Def=-1506 101%d. Petsling Tin -9s tryck.

He Tinto (Beater) –£2-3/16. Roan Antelope Copper-5 7154, Welkom Gold Mining-(Sa, Western Holdings—-181s Gel.

Rubbers & Tea

Anglo Indonesian Plant.—4% 34. Ceylon Tea Ord-28 Od. Imperial Ten Ort-144, Kuala Lumpur-Kepong-Jr 4lậð.

Lambak Rubber-45#.

-Reuter.

Exchange rates

Business was done in the local un- official exchange market this morn- ing at the following rates:- US dollar per si

notes (per £1.

Stralian notes (per

Siem ticals (per 100) Indenesian Rupiah (per 100).. Singapore (Straits)

Plature shows a dam In course of construction on the Tumut River, Australia. It forms part of the 280,000 kw "T-3" project of the Snowy Mountains scheme, the second hydro-electric development on the river. The T-2 power ntation is to come into operation in 1962. The Times Photo.

Important cause of

recession

said

nearing end

New York, Jan. 31. The most important cause of the current business recession-the drop in inventories-is nearing its end, according to the magazine, Business Week.

RANSPORTATION

Washing across the North Atlantic

London, Jan. 30.

The keen housewife can learn a lot from a trip in a well-run ship. Cabins as well as public rooms offër ideas in colour and design, and "compactness" is ofton a necessity in a ship.

to

Now, I will be possible learn all there is to icnow about the bandling of an automatic washing machine while crossing the North Atlantic.

An expert undress from ashore has been engaged by the Cunard the to instruct tourist- class pasengers in the Queen Elizabeth who Wish

to make ure of six newly installed auto- matic washing machines.

Another ship-tip that is being widely copied is the use or small, porous paper mats which fit into saucers and prevent any drips gering on the bottom of cups.

World's fastest jetliner

The world's

fastast com- marcial jet airliner will bo in regular service with Swissair through Hong- kong this summor.

It is the 900 Coronado, the first of which was recently rolled out of the Corvair factory at San Dieko, California,

In the 40,000-ton Oriana, still on her first round voyage to The Convair Coronado, with Australia, tre cups designed to more powerful engines and Im- "neat" in cach other, and eu proved aerodynamic features, space, may start has a maximum level cruiding cave storage

speed of 640 mp.h.closer to a fashion.

the speed of sound then any

Nallon-wide, the magazine's economy rushing upward the reporters have found that most face of a continuing downward companies in most industries trend in business investment in shaking. have now pulled their inventory new plant and equipment. down about as far as they want! Business Week says to. In a few cases they may | cross-currents complicate

血

When the Royal Mail Lines | other commercial air transport, decided to switch from

A total of nine of these air- black to while-painted hulls fcr their three new "lovely clster" craft have been ordered by liners, Amazon, Arlanza and Swissair and Scandinavian Air Aragon, there was come headlines System. Two will go direct to SAS and soven to Swissair.

Beautiful for the sumy South The two of the Swissair many Atlantle, but limpossible for ports Coronados will be leased to SAS the whore oil may gather on the under their pool agreement. even have overdone It, thepleture, but the outlook for 1981 surface, said the experts,

All will be maintained at the mogazine says.

in the eldest of the three Swissaly bases in Zurich. Immediately In the months

Fits: quarter-Bquidation

sisters, the 20,000-ton Amazon. ahead, Inventory-cutting should will continue, but at a reduced still dazzlingly white. I have give way to the maintenance of rate.

had the verdict from a kendor steady levels, Business

Second quarter-Inventory ship's officer: "Keeping her say's.

cutting by some Industries will white is easy," he said, "but However, Business Week about balance with inventory- you have to make it a habit cautions this would not send the [building in others.

like washing your hands.”

• Secondl

half-the odds are strong that both inventories

Week

Two for one stock split

Is this

An inside inspection of the and soles will be up-China | 140-ton rudder has been ono

of the items in the vast level-to- masthead overhaul of the 81,200-ton Queen Mary which will soon be completed at Southampton,

Maintenance

Special. Textile market

Philadelphia, Jan. 31.

Electric Philadelphin

Com- pany directors have authorised a two for one stock split on the common, and conversion of the $1 preference common

New York, Jan. 31. stock Into the split common The cotton textile market rock. This is subject to the

displayed a steadier tono approval of shareholders at the umum meeting on April 12.

today. MIIL:

e the Queen secret. Mary's keep-young Eight hundred tons of new paint on her bull and superstructure are the outward sign of an an trual overhaul which employs hundreds of men for six weeks. While the paint goes on their tasks include the checking of 700 electric clocks, 2,500 carpets, Mr R. G. Rineliffe, the Presid-!

600 telephones and the 257,000 en, said "ofter

stockholders buyers raised their bids for for-blades of the main turbines approve the proposal, the Board ward cloth, according to market of Directors contemplates In-reports, che or two milis sold creasing the COTTON dividend from the present an various forward positions, low- nual rate of $2.21 a share which

reported

somo

-London Express Seroler).

stock a limited quantity of cloth in Tentative approval for

ever, must

mil rejected the

Hengkang will cee its first Coronado 090 this summer when Swissair make the changeover to jets on their Far Eastern routes. Tho Coronado will serve Calcutta, Bombay. Bangkok, Manila, Hongkong and Tokyo via Europe and the Middle East,

It will also be placed in ser- vice on both SAS and Bwiezair routes to South America. in addition, SAS will have tho super-speed jet on its routes to

East and South Africa.

The Convair 900 Coronado, to give the alrernit its correct title, is distinguished by two entirely new footures a supersonic swept-back wing, and four en- larged wing pods.

SWEPT BACK WING

The Coronado's wing-thinner than that of any other jet tran- sport 13 awept back at on angle of 30 degrees.

has been paid for the past two offera to do asincs on the merger of Z airlinae continuous, supersonic years, to a rate equivalent 10 grounds that prices were not at

share on the present

$2.40 A stock."

This would be effective with 4.72 the June, 1901 dividend, Mr Rin- 14.03 cliffe suid, and would result in 12.71 26 25

en annual rate of $1.20 per share 200 after the two-for-one stock split, 1.00 China Mail Special.

a profitable level.

Orders for wool goods were Umited.

In synthetics, small sales of fabrics weTE rayon and other reported for livery.—AP.

first quarter de.

COMMODITY PRICES

COTTON

NEW YORK

Closing prices all in cents per ib.:

Spot: 33.23 nom, Mar: 33.10; May: 3320: July: 03.20; Oct: 336; Psci 53.00: Mar: 34.10: May: 34.20;July: 33

NEW ORLEANS Closing prices all in cents per lb.:

funding of $6,900 million toid

With wool imports at 040.0 million pounds (petual weight)

Spol: 29.83; Mar: 22.11: May: 32.38: worth of maturing certi-July: 31811 Oct: $4 06: Dec: 31.10: Mar: 3210: Mavi 25.301 July: 53.00. LIVERPOOL Closing prices all in pence per

flcates whether they own

the old securities or not.

in 1000, Britain's purchases 7.90 7.70 4000 41 7.00

Officials sold the old certifi- were 14 per cent smaller than 7000 7.00

| in the previous yer

entes would be replaced by a The Secretariat

that new issue or issues of accurities, said theso Zeclining imports werd the terma of which would bo "commercially considered to announced Ister

week.

100

Really

Lane, Craw.

Iml'] Iny,

1.35 1.978 20000 () 1.95

72000 $1,90

1.05

43

1340 1335

XIC & FE

·Inv.. dūman

16,70

3.128 3.13

مارة .

· represent · a correction of the Holders of old securities would stock situation and the Industry, not be emntest exclusive, rights i is well placed to take full ad- to exchange them for the se= vantage of any improvement in | placement isques. The now ascurities would be sold for cash dermond."

13.46 Aurizella ställ was the largest to any investor.

source of supply but British Im-

Old certifiento holler whoco

2009 4 18:40 | porta were 20 per cent lower. purchase offers were decópíói

11899 | ÏMirchases from

word

them

South Africa | could turu

into the down and | Tremury at par in lļou of cath 25 per cent from-Mannland- & pou send | payment,-- they' · addet-China lowor-UTI.

Mall Special,

American Conjenet

Kar: 12.00; May; 23,40; Juły: 23.$0; Oct: 225 Mirà Contract

DYMAI.

Mer: 23.09; May; 2395) July: 20.80; Oct 143; Dog: KL-UPL

RUBBER

Sept.

LONDON

21.10

27.70

Closing prices all in pence per

24-546

15:

No, 1 as 100t

2011-2012

Settlement house term:

Jan./Mar.

2331-21

Apr/June

July/Sept.

24-342

Nov/Dec.

Jan/Feb.

2411-2434 General markets, c.lf. basis; porte:

Feb.

Mar

Existe crepe,

thin F. thick Mar.

---UPI.

METALS

NEW YORK

3-mont

73714

Ta

Coppe

3-month

Lead

Spot

B-month

必须

Zing

Spot

3-month

UPL

~ FOREIGN

AXCHANGE

NEW YORK Closing rates:

Canada

England official

H

Closing prices all in cents per Now Zealand lb.:

Lead

Mar

May

Zino

tar.

May

Copper

May

1.00 31/72 2.0063

2.7795

0.2423

2.7944

22.0005

20-days

Australia

00-days

South Agries

Other unchanged.

LONDON

10,00

Closing rates: New York

30.03

fototdatre22"

2003-2004

ブラ

19.00$-1989

02.30

1936-19

3020-0030

20.0015-20.0006

36.24 /

| Amsterdam,

Brusela Copenhagen Frankfurt Lion

Closing prices, all in sterling stockho per long ton!

LONDON

.....

NEW YORK Rek rubber futuros closing prices, all-in emits per lb.

Max

Mer July

27.10

Tin

Buyer teens

pal 79 100

Vienna Zuricis

To enable the wing to take a air flow over ila surface, and at the same time, provent The formation of Washington, Jan. 31.

shock waves, to wing has four The U.S. Civil Aeronautics streamlined: "speed enpsules" or Board tentatively voted pods, on the upper surface. today to approvo a merger

Painted at each end, the cap- » of United and Capital sules are 24 feet long and wo Airlinos, with cortain feet wide at their greatest

conditions,

The merger,

would

make

diamoler.

An innovation of the advanced United the largest airline in the General Electric engine is that

US and at the same me

would satisfy action

inin's Vickers-Armstrong Ltd to the collect some $34 million to it by Capital.

by Bri incorporates a large fan at rear to pull bypas otr the engine, The afr owed around

ducts for this aft fan practically the basic engine, surroundi resulting in an engine pod pl- most six feet wide. By mixing the aft fan exhaust with the jet

The ive-man Board announe- ed its tentative approval in a news release.

The announcement was not a

final decision, but hadicated that engine exhaust, the sound level would be entered very soon, Thehas been decreared to the same

parties to the merger agree ment had hoped for final Board action by tomorrow-AP.

dicusses Pl panel

airlines' permits

Tho

level obtained by a sound min- a corventional jet pressor Bon

gine.

Thrust from each of the en- Kinca is rated at 16,100 pounds. Taksoff weight of the Coronado Other 000 $244,200 pounds. data: wing aban, 120 foot; length, 139 feet; and height at tallplane,

Britain's second nuclear submarine

Manlia, Jan. 31.

Aviation Philippino Panol hold a special session tonight but defor.

· rod making" any docision on whether to extand or not the temporary permits of two American airlines operating in this-South-The oast Asian country, de The panel, headed by foreign secretary Felixborto Serrano, mot twice with 12 hours joday to hammer out the Philippine stand on the permits of the Pan American World Airways

which

the Northwest Airlines 11.709%-11.705k | expire on February 3.

The confereeg tonight agreed, however,

contract for the de aign and manufacture of the main propulsion steam turbines and con- densert for Britain's second nuclear submorino has been awarded to Sng- fish Electric.

The machinery will be hall

to leave any and at the Company's Mughy works.

nouncement to President Carlos: The submarino was zibenik or- Admimity from the issue Vidburn-Armidtrongs, - BarróW~~-~~-

17. Garcia with whom they are dered by the scheduled to discuss

tomorrow.-UPL

LPS.