Rare Periodicals

Business Day

Media

Part of Business Day

Title

Business Day

Description

Southeast Asia's First Business Daily

Issue Date

Volume XIV (Issue No. 129) August 26, 1980

Publisher

Enterprise Publications

Year

1980

Language

English

Subject

Philippines -- Commerce -- Periodicals

Rights

Place of publication

Manila

extracted text

Oil strike at Batas 1? The country may have another oil strike. The Ministry of Energy said Philippine Cities Service Inc. has completed the first of a series of drill stem tests on its exploratory well, Batas I. Batas I is located four kilometers west of the Cadlao structure where two wells with a combined capacity of 9,680 barrels a day were drilled and are awaiting development. Cities Service, itself, gave its new well a 50-50 chance of becoming a new oil strike. Two other DSTs will be conducted on the well to determine the product­ ion capacity of the well — if it proves to be productive. Page 8 - --BOP deficit trimmed to S223M • Exports grew 33.7% to $2.79 billion • Imports rose 23.1% to $3.73 billion • Foreign borrowings totaled nearly $1.9 billion; obliga­ tions repaid amounted to $1.37 billion • New foreign investments in­ creased 35% to $123.7 mil­ lion • Mineral exports more than doubled at $712.24 million BALANCE OF PAYMENTS Ayala Corporation can’t plan over six months ahead The Ayala Corporation, noted for its successful planning, is now doing the thing only six months ahead — but in a de­ tailed, “flexible” manner. It is into food — a necessity in any condition. It is also into several activities in Mindanao, where as a “politically neutral organiza­ tion” it provides “a necessary service or product,” Enrique Zobel indicates. He also advised management executives on choosing companies to acquire duringaincertain times. Page 7 Trade shortfall: $937.9M The Philippines posted a $22.75-million balance of payments deficit last month, bringing the total since January to $223.42 million. The Central Bank said the seven-month deficit, however, was better than the $426.66 million recorded in the same period last year. The biggest contributor to this seveji-month deficit was the importation of Two moves in major aggie sectors Sugar workers press demand for raise in buying price so they can get wage hike Sugar workers have asked Labor Minister Blas F. Ople to forward to President Marcos their proposal for the government-owned National Sugar Trading Corp, to raise its buying price for sugar from the present P105 to P130 during crop year 1980-81 which begins next month. They said the new price would enable their employers to give them salary adjustments required by various presidential decrees. These employers have been exempted from giving their workers the statutory wage increases and re­ quired emergency living allowances because of the previously depressed i, ji’.u f /• Itc world ttwtal ,Paoe •!» $3,029 million worth of essential items, among them crude oil. Imports totaled $3,732 million, while exports totaled $2,794 mil­ lion for a trade deficit of $937.87 million. However, “invisible” tran­ sactions like foreign borrowings, tourism, and services contributed $714.45 million to narrow down the deficit. Page 8 10 more IRRI-developed rice varieties included in other nations’ schemes Plan set for coco workers hurt by fall in copra price The government has adopted a nationwide program to assure coconut workers of an income despite the continued drop in the world market price of copra. For one, it has started recruitment of coconut industry workers for overseas jobs. It will also launch technology transfer projects to teach farmers other ways of making money. In the future, the workers will also be granted social benefits like social security, education, financing and housing. Initially, however, the government is concentrating on find­ ing work for the coconut workers, according to Rafael Espiritu, director of thft Rural Workers Office of the Ministry of Labor and Employment. The first batch of 350 men is being processed for work in Egypt. Page 6 Ten rice varieties developed by the International Rice Research Insti­ tute were named in national prog­ rams of rice growing countries last year. This brought to 75 the number of IRRI varieties so far adopted all over the world. The new varieties are: Sinshwethe, IR 34, IR 36, Rajinder Dhan 201, Laxmi, Sabitri, IR 529, IR 50, IR 48 and IR 2053. The Philippines The Stock Market last year formally adopted IR 48 and IR 50. IR 48 is the first IRRI line to have intermediate amylose content, which makes it one of best IRRI varieties in terms of flavor and texture when cooked, while IR 50 is one of the varieties most resistant to tungro, a disease caused by viruses, which has spread in wide areas of Mindanao and Central Luzon. Page 2 Share prices opened strong at the exchanges yesterday, firmed up at midsession but weakened at the homestretch. Transactions were a bit livelier as the commercial­ industrial and oil sectors recorded higher peso turnovers. Volume more than doubled Friday’s traded shares. Page 16 Firms borrowed P164B thru CPs in 1st semester Short-term borrowings of the busi­ ness sector from the public through commercial papers amounted to P163.9 billion during the first half of the year. The Securities and Ex­ change Commission said this is 21% more than the borrowings of P135.1 billion during the same period last year. Since the total debt ceiling of the companies “at any one time” during the period was P55.7 billion, the high total borrowings indicate increased trans­ actions in the money market, the SEC said in a report. Page 8 Corporate Developments • MMIC shift to coal for nickel operations given tax boosters The Board of Investments approved Marinduque Mining and Indus­ trial Corp.’s shift from oil-fired to coal-fired nickel operations for registration under the energy priorities program. MMIC received two extra years of exemption from all taxes except income tax. Page 7 • 4 exporters get BOI incentives The Board of Investments registered four projects under the Export Incentives Act, including that of Union Chemicals, Inc., the local affiliate of Ajinomoto Co., Inc. of Japan, which produces mono­ sodium glutamate. Pa8e 7 New rhythm, new beat at____ _ MEOHLEVmiER COCKTAIL LOUNGE Page 2 Business Day Tuesday, August 26, 1980 World adopts 10 new IRRI varieties LOS BASrOS, Laguna (PNA) - The International Rice Research Institute (IRRI) reported that 10 varieties it has developed were named in 1979 in national programs of rice-growing countries bringing to 75 the number of IRRI varieties adopted worldwide. The new varieties are: Sinshwethe, IR 34, IR 36, Rajinder Dhan 201, Laxmi, Sabitri, IR 529, IR 50, IR 48 and IR 2053. Sinshwethe was released in Burma while IR 34 was used in Tamil Nadu, India. IR 36 was planted both during the wet and dry seasons in Orissa, India. Rajinder Dhan 201, a highyielding variety that has excellent grain quality and bacterial blight resistance, was recommended in Bihar, India, particularly in areas with good water control. Laxmi and Sabitri were endorsed for the Terai region of Nepal. These varities resist many diseases and insects. They are early-maturing and have excellent grain quality. IR 529, a high-yielding, medium­ duration cultivar, was released in Niger and Upper Volta. DISEASE-RESISTANT. IR 50 was released in the Philippines. This is a variety that matures in 105 days and resists diseases such as the tungro virus. It is also disease­ resistant. The first IRRI line to have intermediate amylose content, IR 4 8, was also released in the Philippines. It matures in 135 days and resists most diseases and insects. The first variety to be recommended in the Sudan is IR 2053. IRRI also said IR 34 released in Tamil Nadu and IR 36 recommended for Orissa, both in India, are identical to the IR varieties of the same name released in the Philippines. The total of recommended varieties in 1979 was exceeded by the total in 1978 when IRRI achieved in “all-time high” of 14. The varieties named in national programs then are: IR 43, IR 44, IR 45, and IR 46 in the Philippines; Asahan, IR 36 and IR 38 in Indonesia; IR 1529 in Cuba; NN 3A, NN 4A and NN 5A in Vietnam; PR 103 and Prasad in India; and Tamale 1 in Ghana. Universities’ role in building ‘global community’ discussed In a world that has grown to be more crowded, more hungry and more competitive, universities have a special role to play. That role is to develop a knowledge base on which a “global community” can exist as a “conglomerate of continuously advancing civilizations in peace and justice.” This was the gist of yesterday’s theme discussion on the special role of universities in the development of international cooperation. It was the first theme discussed at the on­ going seventh general conference of the International Association of Universities at the Philippine Inter­ national Convention Center. At yesterday’s conference, it was established that fragmentation and rift in the international system — resulting in considerable conflict and strife accompanied by frag­ mented and increased parochialism in knowledge — has not helped any in solving the world’s current major problems, including poverty. It was predicted that by the year 2000, 500 million people will live below the level of absolute poverty. SYSTEMATIC KNOWLEDGE. In the light of the world’s current problems — and the need to dev­ elop a much more “systematic By Ma. VICTORIA A. GOCHOCO Reporter knowledge” In dealing with them — the international role of universities needs to be continuously reas­ sessed. According to Lord Briggs of Lewes of the University of Oxford, serious global imbalances resulting from geographical, social and politi­ cal developments require more con­ cern for cooperation specially among universities. He said each university cannot be separated completely from the process of history or from move­ ments of aspirations, of people. Universities have to work out in unison a practical attitude toward cooperation and work out viable means for its realization, he said. He decried that in the late 1970s, a “narrowing of horizons” was experienced in universities, caused in part by financial consider­ ations. There was more focus on re­ sources available to the administra­ tion, he indicated, rather than dev­ elopments in history, sociology or other fields, SIX-FOLD ROLE. In this light, he said the special international role of universities is six-fold: ♦ They should help educate people with a capacity for identify­ ing solutions to the world’s prob­ lems, applying those solutions and evaluating results; * They should develop indivi­ dual strategies of their own, with the university president himself di­ rectly involved in implementation; * Through cooperative activity with other universities, they should create part of the necessary univer­ sity structure in which global com­ munity thinking can prosper, as in the creation of “varied and per­ sonal” networks to form a “global infrastructure” that would be rele­ vant to development of a univer­ sity; * They should increase their concern for local and national af­ fairs; * They should use more sensibi­ lity and imagination in the acquisi­ tion of information and analysis of problems for international educa­ tion. The greater the uncertainty in the world situation, the greater should be the use of imagination. This would serve not merely to rouse curiosity, about other people but generate concern for other people; and * They should emphasize the creative role of the arts (visual art, music) in bringing together peoples of the world. Filing claims on life insurance policies If claim requirements are submitted quickly, and the life insurance policy is incontestable, a claim can be settled in only a few hours or one day, according to Amado V. Dimalanta, assistant vice-president for claims of the Philippine American Life Insurance Co. The first procedure in settling a claim against an insurance policy is the submission, upon the 'death of the insured, of a death certificate, marriage contract (in case the beneficiary is a spouse), the insured’s birth or baptismal certificate, and the insurance policy contract. The following claim forms must be filled out: certificate of claimant, to be accomplished by the beneficiary or beneficiaries; certificate of the attending physician who last ministered or attended to the deceased; and a certificate of identifying witness to be accomplished by an unrelated or uninterested party to the claim, who has been an acquaintance of the deceased and who can attest to the fact of death. These forms are re­ leased upon ascertaining that the policy was in force at the time of the insured’s death. Different procedures are followed if the beneficiary is a minor. If the policy amount is P20.000 or below, the company requires an affidavit of legal guardianship to be executed by the father, or by the mother if the father is deceased. If both parents are deceased, letters of guardianship are required. If the policy amount is more than P20,000, the claimant must submit letters of guardianship to be issued by the proper court appointing a judicial guardian. If the insured dies within two years from the policy’s effective date or from the date of reinstatement, the policy is deemed constestable. In such a case, the insurance company proceeds to look into the health history of the insured to confirm his declarations in the application for insurance. How To Since an insurance contract is a contract based on good faith, concealment of a material fact and/or misrepresentation of an applicant’s true state of health entitle the insurer to contest or deny the claim. However, according to insurance company officials, the percentage of denials is small and records show that a great number of claims even on contestable policies have been paid. On the other hand, there are the so-called “borderline accident claim cases” that are not processed right away. One example is that of an insured with a history of hypertension, who collapses and dies when his head hits a pavement. In this case, doubt arises as to what in fact was the proximate cause of death. Another instance is that of murder or assault, in which case the question would be: Did the insured provoke his assailant? Other circumstances could delay the processing of claims, and the most common are the following: * An accident in which the insured’s SMHHHSHHMBBH culpability is called into --------------:------------------ question, such as a car mishap when he may have been inebriated while driving; * An accident occur­ ring while the insured was driving with an improper or expired license — a violation of the law. * A change of beneficiary, whereupon the previously named beneficiary challenges the new claimant, or the authenticity of the insured’s signature. In some cases, two claimants both attest they are the legitimate spouse of the insured. Under Philippine law, if the common-law spouse is designated as beneficiary but the deceased was legally married to someone else, the money will go to the insured’s estate to be shared by his or her heirs. The common-law spouse is disqualified from any claim, except when she or he and the insured are both single and therefore with no legal impediment to marriage. (The "How To” series is a Business Day feature every Tuesday and Thursday). LETICIA M. LOCSIN Managing Editor EXEQUIEL S. MOLINA Editor JOSE M. GALANG. JR. News Editor Business Day __ Published under PCPM Certificate of Registration No. 108 RAUL L. LOCSIN Editor/Publisher MIGUEL Z. PATOLOT BUSINESS PAY Is published Monday, through Friday by Buslnessday Corporation, with editorial offices and plant at No. 113 West Avenue, Q.C., Philippines, telephone 99-15-46 to 49 connecting all departments; advertising and circulation offices at No. 113 West Avenue, tels. 96-67-16, 96-77-06, 96-67-41 for advertising and 99-99-02; 99-98-53, 99-05-44 for circulation. All rights reserved. The contents of this publication may be repro­ duced In whole or In part provided due credit Is given. RE­ ENTERED AS SECOND CLASS MAIL MATTER AT THE MANILA POST OFFICE ON AD LOI 1056: assistance to firms that may be hurt by wage hike By MAT DEFENSOR T h e implement­ ing guidelines of Letter of Instructions No. 1056 should be able to re­ solve the issue on exemptions distressed firms and exclusions of or industries from payment of the new wage adjust­ ments. The issue was raised by the labor sector during the Tagaytay tripar­ tite conference on wa­ ges, employment and industrial relations, on the grounds that “these wholesale exemptions and exclusions” consti­ tute “technical violations of the spi­ rit of the agreement” and “contra­ ry to the original intent and object­ ives of the welfare-oriented mea­ sures.” Prior to issuance of Presidential Decree No. 1713 (the law effecting the new wage increase) and LOI No. 1056, full or 50% exemptions from or deferment of compliance to wage increases were granted under PD No. 1634 and PD No. 1678. Bene fitting from these were distressed or dislocated industries, newly organized firms, small and medium-scale enterprises, retail and service enterprises and labor-intens­ ive and export-oriented enterprises, among others. Applications for exemptions were approved by the Ministry of. Labor and Employment on the basis of actual or potential losses, on recommendation of government ministries concerned and threefourth of the employes covered by specific wage laws. The criterion was that accumulated losses were incurred in the preceding two years and impaired a firm’s total book value of assets by at least 10%. Exemptions were usually good for a maximum of one year, subject to renewal upon re-application. The labor sector eagerly awaits the new guidelines with optimism, hoping that at least government assistance to distressed firms may not only be in the form of exemptions or exclusions. LOI No. 1056 seems to favor labor’s wish, since it seeks to “determine the appropriate response or assistance that may be extended to those firms with a view to maintaining in­ dustrial growth and viability . . . .” Regarding small and medium-scale industries, for example, labor contends that various forms of government assistance and incentives, other than exemptions from mandatory wages and benefits, are still the Business & the law only appropriate means for promoting these industries. Labor indorses the request of these industries for expeditious treatment of their rediscounted loans, condonation of certain penalties arising from delays in export shipments and easier access to the International Guarantee Loan Fund (IGLF). It proposes that the government exercise moral suasion to elicit sympathetic treatment from financial institutions, and utilize Social Security System funds or government money to finance the stockpiling of critical raw materials for small and medium-scale industries. These are good proposals and they should indicate that, though not specified in the LOI, labor and management should have to join the Minister of Finance (as chairman of the Cabinet standing committee) and the Minister of Labor in the task of formulating the guidelines that will be faithful to the LOI’s primary intention, which is “to adopt a mechanism to intensify and provide quick succor to distressed firms in order to preserve jobs and decent income for the workers.” This way, we can be able to draw the mechanism that will work three ways in favor of labor, industry and government. Tuesday, August 26, 1980 Page 3 Ongpin chides chamber on tariff reforms sked Industry Minister Roberto V. Ongpin expressed “surprise and dis­ appointment” at the reported attitude of the Philippine Chamber of Com­ merce and Industry (PCCI) on the tariff reforms recently initiated by the government “I can only conclude that they (PCCI members) have misunderstood the tariff reform program or have not studied it sufficiently,” Ongpin said. Instead of criticizing the tariff re­ form program, Ongpin said the PCCI members “should have welcomed it” as the “vast mt(jority of them will, in fact, benefit from the reforms.” PCCI, as reported in the news­ papers, was questioning the timeliness of the tariff reform program consider­ ing the prevailing worldwide crisis brought about by the oil price increase and inflation. At the same time, it was noted that developed countries are set­ ting up their protective measures. PROGRAM TIMETABLE. According to Ongpin, the tariff reform program will be staged over a period of five years beginning 1981. One phase in­ volves the reduction of peak (above 50%) tariff rates, to 50% in two stages over two years. The other phase involves the ration­ alization of tariffs for finished pro­ ducts and inputs (raw materials) of 14 selected industries. This particular phase, he said, will be approached on a sectoral basis and the tariff reforms will be undertaken hand in hand with the development programs for these industries. “The phasing is intended to give industry ample time to make the necessary adjustments,” he added. On the protective measures being put up by developed countries, Ongpin said the main concern of government is to promote industries which could produce goods at reasonable prices for local consumers. “It must be realized that the tariff reform program is really an anti-infla­ tionary measure and this makes it a well-timed undertaking,” he stressed. SMUGGLING. At the same time, the industry minister pointed out that the tariff reform program will*‘discourage smuggling" because there will no longer be the high tariffs that put pre­ mium on goods. “There is even a possibility that tariff revenues may increase slightly contrary to what PCCI expects, part­ icularly because more reasonable tariff levels will discourage smuggling,” he said. Ongpin also pointed out that the tariff reform program is not being undertaken to satisfy a World Bank re­ quirement in granting a $200 million loan. “This WB loan came after the gov­ ernment’s decision to restructure the country’s overall industrial picture. Even without the loan, we will be undertaking the restructuring program and the tariff reform will still have to be implemented,” he said. Private groups plan ind’l estates in Mactan, Ecija Private sector groups recently pro­ posed establishment of industrial estates in southern Mactan and in Nueva Ecija. In a letter to the Export Processing Zone Authority (EPZA), Malayan In­ tegrated Industries Corp, offered to put up a seaport-oriented export pro­ cessing zone on a proposed reclama­ tion area at Cordova in southern Mac­ tan. The .proposed industrial estate, which would be near the newly inaugurated Mactan Export Processing Zone, could be placed under the admi­ nistration and supervision of EPZA, the private company said. Another group of local investors, including a retired general and the owner of a rural college, is also eyeing the possibility of developing 67 hec­ tares of prime agricultural land in Cabiao, Nueva Ecija, into an industrial estate. Gallego Institute of Agriculture and Industry president M. Gallego, re­ quested EPZA to include the project under the government’s program to disperse industries to the rural areas. The proposed industrial estate site lies along the Cabiao-Arayat inter­ provincial highway, some 110 kilo­ meters from Manila by road and 12 kilometers from a railroad station in Gapan town. It is about an hour’s drive to Cabanatuan and Angeles ci­ ties. SUITABILITY. Gallego said the rela­ tively low land cost and abundance of raw materials makes the area suitable for the putting up of an industrial zone. Industrial enterprises which could be set up in the proposed in­ dustrial estate, according to Gallego, are alcohol distillery plant, moecovado sugar mill, seed farm, tractor assembly and manufacturing plant, cigar and cigaret factory, tobacco classifica­ tion and flue-curing barn, yeast plant, cottage industries, ceramics plant, machine tools, engineering works, gar­ ments and apparel industry, shoe and leather goods manufacturing, and live­ stock feedlot. Prospective financiers of the pro­ posed Nueva Ecija industrial estate project are the Asia Corp, and Definco, an international finance and invest­ ment company based in the United States. Both firms are represented by retired Gen. Tranquilino Paranis. Malaysia to cut oil output KUALA LUMPUR (Reuter) — Malaysia’s crude oil output will be reduced about 3.6% to around 270,000 barrels a day on average in 1980 from about 280,000 B/D in 1979 as a result of the newly imposed depletion policy, Petronas chair­ man and chief executive Tan Sri Abdullah Salleh In a speech prepared for delivery to an energy conference here, Abdul­ lah said Petronas notified its contractors, units of the Exxon and Royal Dutch Shell groups, in June of the depletion policy. Production has been adjusted mildly at the moment, he said, adding that output in June and July averaged 278,000 B/d after running at 290,000 in January through May. Abdullah said that under the depletion poli­ cy, production controls will be applied to major fields, while development of major fields which might be found in the future may be postponed for a period of three to five years. This will help ensure that the availability of Malaysia’s oil resources is stretched as far as pos­ sible. net Importer. He estimated that on the present pattern of con­ sumption, Malaysia will become a net importer of oil by about 1986. Abdullah stressed that a positive factor in Ma­ laysia’s total energy pic­ ture is its large reserves of natural gas which amount to almost three times its oil reserves in British thermal units (BTU) equivalent. Petronas believes that in the period before new forms of energy become commercially viable, gas will be the energy source to tide the country over the transition from oil. Petronis has sought World Bank expertise to work out a master plan for the utilization of natural gas for Malaysia, with the study expected to begin before the end of 1980, he added. RESERVES. Another Petronas official, re­ search department head Be be Chooi, told the conference that Malay­ sia’s recoverable oil re­ serves are now estimated at 1.8 billion barrels and its non-associated gas re­ serves at a level in excess of 30 trillion cubic feet These figures, publicly released for the first time, represent an ad­ vance of about 30% on previous official reserves estimates of 1.4 billion barrels of oil and about 23 trillion cubic feet of gas. She said the recover­ able oil reserves at the present daily production rate will last only another 18 years, as­ suming no new disco­ veries are made and the current level of oil re­ covery technology pre­ vails. Major RP economic policies hit Major Philippine eco­ nomic policies — from the export-oriented in­ dustrialization strategy to unibanking — were criticized by speakers at the First Conference on Economic Independence last Saturday. The conference was sponsored by the National Economic Pro­ tectionism Association (NEPA) and the Philip: pine Council for Econo­ mic Independence (PCEI). Writer Renato Cons­ tantino who keynoted the conference said that major economic policies such as “foreign invest­ ment incentives, export orientation, lower tariffs, export processing zones, and unibanking, are “part and parcel of the full-scale integration of the Philippine economy into the mainstream of world capitalism." Constantino claimed that this type of develop­ ment “has failed to ma­ terially reduce unem­ ployment, has aggravated the concentration of wealth in the hands of foreign corporations and a small local elite, has raised our national debt to astronomical propor­ tions, has made our eco­ nomy dangerously vul­ nerable to international price fluctuations, infla­ tion and recession and is quickly turning over to foreign control more and more of our natural re­ sources and an ever larger sector of our economy.” TAXATION. Another speaker, Hilarion Henares, former chairman of the defunct National Economic Council (NEC) and now president of the Philippine Pigment and Resin Corp, said the tax burden in the Philippines stands at 25% of the gross national income. This, he said, will re­ sult in a “serious and almost irreversible infla­ tion eroding the standard of living of the mass of the people.” Summarizing econo­ mist C. Northcote Par­ kinson’s analysis in “The Limits of Taxation,” He nares claimed that if a country’s taxation rate reaches 20% of the national income,” the productive sector of the population and the gov­ ernment itself becomes corrupt.” This point was reached in the Philip­ pines in 1977 when taxes collected accounted for 20.85% of the gross national income, accord­ ing to Henares. Henares warned that a 30% to 35% tax on the national income will set into motion a visible dec­ line in freedom and stab­ ility, as what has been happening in most South American dictatorships. When the tax burden reaches 36%, “disaster, complete and final, al­ though not always imme­ diate” will result, he added. DEPENDENCE. Perfecto V. Fernandez, professor of law of the University of the Philippines, said government policies such as the free entry of for­ eign investments, maxi­ mum availment of for­ eign loans, and maximiz­ ing exports are creating an economy dependent o n the “Industrial North” or principally the U nited States, Western Europe and Japan. Make your point with STABILO BOSS makes important words or phrases stand out from the printed page. Years of research and experience in Germany have helped to make the STABILO BOSS, with its unique flat’Shape, one of the world’s leading highlighters. STABILO BOSS is available in 6 fluorescent colors. Wedge shaped tip guarantees precise overlining and easy ink flow. Exclusively designed black twist-click cap. Schwa n-STABILO Founded 1855 in Nurnberg Distributed by:_________ Rizal Avenue, Manila P.O. Box 2119, Manila Tels.47-09-23,47-55-02, 47-84-77 Alemars ■fl Tour Boolptore Plu$. Business Oay Tuesday, August 26, 1980 Most Third World nations reported in economic crisis UNITED NATIONS (Reuter) - Most Third World nations are in eco­ nomic crisis, and the economies of the least developed ones have either col­ lapsed or are about to, their ministers said in a communique. Prepared in the Group of 77, the developing nations’ umbrella organiza­ tion, after a detailed ministerial review of their economic difficulties, the document blamed the industrialized world for their plight. There was no adequate political will in that quarter, “even on issues re­ quiring urgent and non-postponable action,” the group, which now num­ bers 120 nations, complained. In certain cases, developed countries have even tended to back away from earlier agreements, the document said, without citing any example. DETERIORATION. The economic situation of most developing countries had -increasingly deteriorated in the past decade, and “the economies of the least developed countries had either collapsed or were on the verge of doing so,” the communique said. “The ministers deplored the fact that adequate, effective and timely measures had been inadequate, effect­ ive and timely measures had not been taken by the developed world and that their response had been inadequate and halting. ” The communique continued that the world economic crisis has now as­ sumed unparalleled dimensions, parti­ cularly in regard to the chronic im­ balances in international payments, a substantial slowdown in world econo­ mic activity and growth, accompanied by widespread protectionism. UN seeks ways to clear mountain of debts of developing nations UNITED NATIONS (Reuter) — The United Nations seeks ways to clear the $281 billion mountain of debts accrued by developing countries in the two-week special session of the United Nations General Assembly. Al­ ready, there are fears that the session will be marked by a sharp confront­ ation between poor nationsand the more affluent West, accused of doing too little to help them. A communique issued on Saturday after three days of private ministerial talks among the 118 developing coun­ tries called the industrialized states* response “inadequate and halting.” The ministers, meeting in the socalled Group of 77, said their coun­ tries faced an unparalleled economic crisis, resulting -from “the inequities and inadequacies of the existing inter­ national economic system.” They want this completelyrevamped. So the General Assembly will try to agree on an agenda and pro­ cedures and establish a favorable climate for year-long global negotia­ tions, due to begin in January. Secretary General Kurt Waldheim is expected to launch an appeal for im­ mediate aid for the poorest of the poor. This 11th UN special session is the third to be devoted to economic prob­ lems. It is also the third session of the General Assembly this year. The pre­ vious ones were on the Soviet inter­ vention in Afghanistan and the Pales­ tinian question. ZIMBABWE. Whatever differences may appear as the session develops, it will begin in harmony with the ad­ mission of Zimbabwe as the UN’s 153rd member. Prime Minister Robert Mugabe, who fought a bloody guerrilla war to win black majority rule through free elections, will personally accept mem­ bership and address the assembly. IMF looking for ways of raising new funds TOKYO - The International Mone­ tary Fund (IMF) is studying ways of raising new funds to help non-oil produ­ cing developing countries with bal­ ance of payments deficits, Japanese finance ministry of­ ficials said. The subject was also taken up at the IMF interim commi­ ttee meeting held in Hamburg last April, they said. But the officials declined comment on a report in the Japanese financial daily Nihon Keizai Shimbun which said the 140-nation IMF has begun studying its first borrowings from international money markets. MEASURES. The daily quoted the fin­ ance ministry as saying the steps being considered in­ clude the issue of short or medium term IMF bonds and receipt of syndica­ ted loans from major international banks. The report said IMF funds were at present sufficient with quota contribu­ tions from member countries totaling $ 39 billion, which would be boosted by 50% in the near future. — Reuter ............... . ......' Business Day SPECIAL REPORT on UNIBANKING and its effects on the Philippine financial system AUGUST 28, 1980 The special report will look into Unibanking laws and how these will affect the operations of the country’s commercial banks, savings banks, invest­ ment houses, loan and savings associations and other components of the financial system. Other subjects covered by the Special Report: • Comparison of the Philippine Unibanking model with that of the German and Japanese models as perceived by Finance Minister Cesar Virata. • Growth of the Philippine capital market and possibilities of “economic power concentration” under the Unibanking scheme. • The new generation of banking executives. • The history of mergers among Philippine finan­ cial intermediaries. Deadline for reservation and submission of cameraready materials is August 25,1980. For further information, please contact Tessie Z. Sorsogon Advertising Desk Businessday Corporation Tel. Nos. 963349 991546-49 Business Oay The contents, length and publication date of Business Day Special Reports are subject to change at the discretion of the editors. REPUBLIC OF THE PHILIPPINES METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM ARROCEROS STREET, MANILA INVITATION FOR BIDS FOR SUPPLY AND DELIVERY OF 'STOCK AND DIES only CLINDISCOoffers Sealed bids in quadruplicate for the supply and delivery of six (6) sets of Stock and Dies for ISO-R7 thread, sizes 13 mm to 50 mm complete with cutting jaws in carrying case will be received by the Metropolitan Waterworks and Sewerage System (MWSS) at the Office for Special Projects, 3rd Floor, Producer's Bank Building, Buendia Avenue Extension, Makati, Metro Manila until 2:00 o'clock P.M. on 11 September 1980. All Bids shall remain valid for award and may not be withdrawn for a period of sixty (60) calendar days after the actual date that Bids are received and opened. The right is reserve, as the best interests of MWSS may require, to waive any informality or to reject any or all bids received without assigning any reason. (SGD.) OSCAR I. I LUSTRE Acting General Manager Ji ... Homes/Hospitals/Schools / Restaurants/Farms Authorized Philippine Distributor: CLINDISCO (PHIL ). INC. 2288 PASONG TAMO EXTENSION. MAKATI METRO MANILA-3116 • TEL. 89-15-26 Serving Farms, Homes and Industries. WORLD SITUATIONER Sweeping revamp starts as Polish gov’t yields to workers on strike WARSAW (Reuter) - Prime Minister Edward Babiuch resigned Wed­ nesday and Communist Party leader Edward Gierek promised free trade unions as author­ ities made a sweeping new bid to end the strike wave now crippling Po­ land. Gierek, presiding over fhe biggest political shakeup Poland has seen in 36 years under com­ munism, announced what amounted to a major liberalization o f the country’s one-party system. He also promised full democratic trade union elections by secret ballot. Demands for free trade unions were the central issue at stake in a worker rebellion in northern Poland which has brought most of the region’s industry to a standstill for more than 10 days. Babiuch was replaced as prime minister by for­ mer chief economic plan­ ner Josef Pinkowski. Workers from more than 400 enterprises in northern Poland defied both the prime minister and Gierek by holding out on the union issue which the authorities had thought likely to call off their stoppages. Gierek, who has been fighting for his own poli­ tical survival during the last eight weeks, pro­ mised that if the militant strike leaders were elect­ ed to union office the election would be honored. This amounted to a surrender of some of its power by the Communist Party. Four full members of the 14-man politburo and two candidate mem­ bers were dropped in the second big shakeup of the ruling body this year. Babiuch rose to power during the earlier shake­ up in February as it be­ came clear that Poland was plunging deeper into political and economic crisis. The finance, foreign and machine industry ministers and two deputy prime ministers lost their jobs in last night’s toplevel purge. The men in charge of the national price com­ mission, of radio and television and the statisti­ cal office were dropped. The politburo propa­ ganda chief, Jerzy Lukaszewicz, was also ousted. He has played a promi­ nent role in the govern­ ment’s press campaign Schmidt cancels talks with East German head BONN — East and West Germany, their plans for a summit thwarted by the strikes in Poland, will attempt to keep their dialogue alive even though their leaders seem to find it impossible to meet. west tierman Chancel­ lor Helmut Schmidt, who cancelled the meeting last week, stressed that talks with the East Ger­ man communist chief, Erich Honecker, were still necessary. A first Schmidt-Ho­ necker meeting planned for last February was cancelled because of the Soviet intervention in Afghanistan. After the second postponement, a West German government statement underlined the importance Bonn at­ taches to developing “sensible neighborly rela­ tions” with its eastern during the eight-week labor crisis. MEAT PRICES. The cri­ sis broke when Babiuch decided to raise the price of meat on July 1. Ini­ tially the media ignored the wave of strikes which spread across the coun­ try. They then changed their policy and tried to shame the strikers into submission by showing the nation the full extent of the damage they were causing. Both tactics failed. The shakeup followed an emergency session of the Communist Party central committee which met for six hours to dis­ cuss the failure of two deputy prime ministers to break the strike dead­ lock in the north. The committee’s deci­ sions were announced on a special television news program. After the announce­ ments, Gierek spoke to the nation and it was then that the full extent of future reforms became clear. “We must have major changes in the eco­ nomy,” he said after admitting that the Com­ munist Party had failed to fulfill many of. its hopes. neighbor. Economics Minister Otto Lambsdorff said relations with East Ger­ many were continuing as before. But it was a blow for Schmidt, campaigning for October’s general election as the champion of detente, to have two meetings with East Eu­ ropean leaders cancelled in a week. Last Monday, Polish communist party chief Edward Gierek post­ poned talks with Schmidt in Hamburg be­ cause of the strikes. Four days later, Schmidt himself felt he had to turn down Honecker’s invitation for two days of talks in East Germany, which would have been the first visit there by a West German chancellor in 10. years. — Reuter Tuesday, August 26, 1980 Business Day Page 5 Pakistan putting up army modelled after Chinese ‘People’s Army’ the United States and the West after the Soviet Union’s armed intervent­ ion in neighboring Afghanistan in Decem­ ber. It was seen also as a response to India’s recent multi-million dollar arms purchases from the Soviet Union and its plans to modernize its armed forces. In March, Pakistan ,____ __________B ____ turned down a $400military training” to million American milsecure Pakistan from *tary and aid package, both internal and ex- made in response to the temal threats. Soviet intervention, on The letters, dated the grounds that it Aug 4, asked the reci- would detract from pients, including the mili- rather than enhance the tary governors of Pakis- country’s security. tan’s four provinces, for No details were given their ideas and early re- in General Zia’s letter of plies, the sources the projected cost of the said. proposed peoples army The general told his but he pointed out that colleagues that the coun- the government had to try’s present 450,000- divide expenditure beman standing army tween defense prepawould be included in the redness and economic new forces and would development with the have “a specialized role.” result that neither got But he said he envisaged the desired attention, a smaller and far betterequipped standing mili- BALANCE The general tary force than at asked, “in view of the present. constraints on our econGeneral Zia also said omic capability, is it posif a peoples army were sible to visualize an efset up it might have to be fective plan which would at the expense of econ- allocate greater resources omic development and to defense preparedness asked his fellow generals ” for their ideas on how Pakistan’s economic and defense needs could be fulfilled simultaneously. ISLAMABAD - Pakistan’s military ruler, General Zia-ul-Haq, is considering a massive in­ crease in the size of the country’s armed forces to create a peoples army on the Chinese model, official sources said to­ day. In confidential letters to selected military chiefs, General Zia pro­ posed introducing “mass Carter, Reagan present contrasting platforms WASHINGTON (Reu­ ter) — When Jimmy Car­ ter unveils his economic recovery program this week, it is likely to emphasize profound dif­ ferences with his Repub­ lican opponent, Ronald Reagan. While the foundation of Reagan’s economic approach is to free pri­ vate business from the burdens of government, News Briefs He said BACKING. The official ^sources said the peoples army plan seemed to be in response to Pakistan’s failure to win large-scale military backing from than to economic dev­ elopment without crippling the latter?” He also asked the gen­ erals to assess in part­ icular the political impact the move would have and the economic effect on Pakistan. Pakistan’s banned pol­ iticians are certain to oppose the plan vigoZIA rously. They are united in their opposition to General Zia’s military government and any attempt by him to in­ crease his power. General Zia’s in­ tention to use the new army against internal as well as external threats will be seen as further evidence of his refusal to hand over power to a civilian government and as an extra instrument for suppression, accord­ ing to a diplomat from a Muslim country who was aware of the govern­ ment’s proposal. Pakistan’s major aid donors are unlikely to welcome the change if it leads to a cut in develop­ ment programs at the expense of increased defense spending, the official sources said. The 11-nation Aid-toPakistan Consortium of major western in­ dustrialized countries and Japan is currently giving consideration to rescheduling Pakistan’s extensive foreign debts. — Reuter No Republican ‘two China’ policy — Bush HONOLULU (Reuter) — Republican vicepresidential nominee George Bush, heading home from China into what could be the first political storm of the election campaign, said flatly here there will be no Republican “two China” policy. Trying to ward off mounting criticism from Peking of statements by Republican presidential candidate Ronald Reagan on Taiwan, Bush told re­ porters here: - “I would refer you to what Mr. Reagan has said and what I have said — which is there will be no ‘two China’ policy. “Our effort is to con­ tinue to improve re­ lations with the People’s Republic of China yet re­ cognize that the people of Taiwan are frineds -• and- that’s what it’s all about.” SPECULATION. Reagan caused a rush of specu­ lation when he said on the campaign trail that as president he would be able to restore official government relations with Taiwan. His statement led to speculation he wanted a “two China” policy — seeking to maintain of­ ficial relations with China and with the Chinese nationalists on Taiwan. Bush, at the end of his three-day mission to China, appeared last night to be playing down the significance of Reagan’s statement Libyan diplomat willing to testify on ‘Billygate’ VIENNA (Reuter, AFP) — Libya’s most senior diplomat in the United States said yes­ terday he would testify on Billy Carter’s ties with his government if invited to do so by a Senate subcommittee investiga­ ting the question. Mansur Kikhia, Libya’s permanent repre­ sentative to the United Nations, told Reuters he would also like to testify on his relations with fugiive American financier Robert Vesco. “ When we are accused in public, we have to answer in public,” he said. Kikhia, a former for­ eign minister, ing during Vienna for a UN meet­ ing. “We are not going to solve our prob­ lems with slogans. It is not by shouting ’down with the Uni­ ted States, down with the Soviet Union’ that we are going to stir up re­ volutions through­ out the world. “Those who, seeking to wipe out all trace of 'Taghut ’ (approval of the fall­ en Shah’s regime), declare that science and specialization must take second place behind the Is­ lamic religion are simply trying to im­ pose their domina­ tion, using the Koran as a cover. “This must not be allowed to hap­ pen. Even at the risk of being killed or im­ prisoned, one must speak out clearly.” He said he told the subcommittee last week he wanted to testify to refute press reports that he tried to bribe Pres­ ident Carter’s brother and Vesco to use their VESCO. Kikhia said he Sadegh Ghotbzadeh Foreign Minister Iran the President is expected to propose an active role by the government to im­ prove the economy. So far only the chal­ lenger has presented a clear-cut economic policy, while the incum­ bent, with three and a half years in office behind him, has not But this is not sur­ prising. With the econ­ omy in sickly shape as the United States grap­ ples with recession, it is ‘ the president’s task to turn the attention of potential voters away from the dismal past and to focus instead on the future. Politically, however, it may be difficult to ask Americans to look to the future when the state of the current economy is all to clear. For example, whole­ sale prices jumped 1.7% in July for a 22.3% annual rate. But con­ sumer prices for July were unchanged after rising 1% in June for an annual inflation rate of 12.4%. While inflation may not continue at such a pace, it means voters may be increasingly dis­ gusted with high prices by election day on Nov. 4. Added to the Pres­ ident’s problems is an un­ employment rate of 7.8%, mainly because of the recession Reagan, on the other hand, does not have to make excuses for the current state of the econ­ omy, but he can bask in the challenger’s luxury of offering dramatic propo­ sals John Anderson, the Il­ linois Republican con­ gressman who is seeking the presidency as an in­ dependent, has yet to provide details of his economic platf o rm, although he has proposed a 5 0-cent a-gallon gas­ oline tax and called for reducing government burdens, especially on small business. 11 die in train crash 56-year fund __________ _ ___________for workers’ influence to win govern- had met several times i i *x I ment export licenses for with Carter and Vesco, D3.11K Capital US aircraft bought by whom he described as a Libya. personal friend, but said menu, uui 8ala ~ A fund he never discussed the. established 56 years ago NO INTENTION. “We airplane export license by the wife of a British did not try to bribe any- with either of them. tea shipping merbody for those planes,” He also denied press chant is to be used to set Kikhia said. allegations that he tried UP a new. kind of workWashington refused in to bribe John White, ers’bank in &i Lanka. 1973 to permit export of chairman of the Democ- Lady dane Lochore eight C-130 transpbrt ratic Party’s national helped set up the fund in planes and several Boeing committee, to lobby for to relieve indebted747 aircraft already paid the licenses ness among workers and for by Libya, saying it “We only met for |t proved so helpfill that opposed what it called three minutes in 1978,” rt was incorporated by an Libyan leader Muammer he said. “I did not talk a®^ of Parliament in Kadhafi’s support for in- with him about the issue temational urban guerril- and my purpose was not las. to give him any money.” He also denied press ---------- - - ----- -allegations that he tried UP ® new kind of work“We only met for proved New violence flares in ME LONDON (Reuter) - New violence flared in the Middle East yes­ terday as two Palestinian guerrilla bombs exploded in the Jerusalem area and Israeli fighters shot down a Syrian jet in a dogfight over Southern Lebanon. One Israeli was killed and 12 people, seven of them foreign tourists, were injured by a bomb that exploded at a gas­ oline station off the main Jerusalem-Tel Aviv high­ way, police and hospital sources said. Earlier a bomb plant­ ed on a traffic island at the entrance to Jeru­ salem went off but only one was hurt, police said. In Damascus, a Pales­ tinian military spokes­ man said several Israeli soldiers were wounded in the attacks The dogfight over Southern Lebanon took place when Syrian planes intercepted Israeli aircraft Damascus radio said the Israeli aircraft were strafing Palestinian positions and refugee camps at the time. Security sources in Southern Lebanon said the Syrian plant that was shot down, identified by the Israelis as a Sovietbuilt MiG-21, crashed in flames 25 kilometers 1951. IV Today the fund, » housed in a four-story building in the heart of Colombo, is a Mecca for Sri Lankan workers in debt north of the Israeli bor- Now the country’s der. finance minister; Ronnie In other military de Mel, wants to use the actions, Israeli and Leba- fund to help create nese rightist militia workers’ banks which shelled the Palestinian- not only relieve debts leftist stronghold of but also seek to rehabiNabatiyeh yesterday, litate workers in financial leftist sources said. trouble. They said the shelling Under the scheme was sporadic but that the worked out by the fund, earlier bombardment was workers will be the only fierce and heavily shareholders in the damaged 25 houses in a banks. number of villages. Albert De Silva, manaThis bombardment ging trustee of the Lady and other shelling report- Lochore fund, told re­ ed from the coastal city porters the main of lyre marked the sixth function of the workers’ successive day on which banks will be emphasis southern Lebanon had on the social developbeen a target for such ment of workers and fire- their families. — Reuter STOCKHOLM: At least 11 people were killed and 35 injuredyesterday when a passenger train derailed at full speed near Upplands Vaesby, about 25 kilometer north of Stockholm. The train was carry­ ing at least 500 passengers from Narvik, Norway, to Stockholm by way of Lulea, northern Sweden, when the accident occurred, flinging the last eight coaches off the track. Cause of the accident was not yet established, but a railway official speculated that a wheel might have come off one of the coaches. — Agence France Presse Pravda hits US nuclear shift MOSCOW: The Soviet Communist Party newspaper Pravda charged yesterday that the recent shift in strategic emphasis announced by US President Jimmy Carter was “a new step toward nuclear war.” The new nuclear plan, which would envisage limited strikes against military and industrial installations rather than cities, is “in contradiction with the principle of equal security for both parties,” Pravda said. The commentary added that there was a “direct link” between the US initiative and a recent Soviet proposal to “open talks on medium-range nuclear weapons in Europe and advanced American nuclear systems” Washington has so far “avoided replying to this proposal,” attempting “to turn attention away from this issue,” Pravda charged. The Soviet Union “categorically rejects this invitation by Washington to a new escalation of the arms race and calls for an end to this dangerous game,” Pravda concluded. — AFP Schism in Iran’s leadership TEHERAN: President Abolhassan Banisadr’s refusal to accept a list of proposed ministers submitted by the new premier, Mohammed Ali Rajai, revealed the wide gulf separating Iran’s principal governmental leaders. Banisadr’s principal objection, which he announced yesterday, was to Rajai’s choice for the key post of interior minister, who, he said, “should be neutral and belong to no party.” Neither Banisadr nor Rijai revealed the name of the proposed interior minister. Informed sources here said that Banisadr wanted Mustafa Mi> Salim to be appointed to the post-AFP Peking accuses Moscow ot high-handedness’ HONGKONG: Peking yesterday accused Moscow of assuming a posture of high-handedness toward Tokyo since the formation of the Suzuki cabinet a month ago. The official New China News Agency said in an article that the latest show of Kremlin’s power politics toward Japan was the towing of a crippled Soviet nuclear submarine through Japan’s territorial waters in defianee of Tokyo’s warnings against such a violation. The agency explained that Moscow’s high-handedness toward Tokyo was an attempt to reverse the new Japanese government’s attitude toward the Soviet Union, particularly after its invasion of Afghanistan last December. It recalled that former Japanese Prime Minister Masayoshi Ohira had temporarily frozen contacts with Soviet officials, suspended new loans and restricted exports of sophisticated technology to Moscow and boycotted the Moscow summer Olympics following the Soviet intervention in Afghanistan. Although the Kremlin made some gesture to Tokyo folowing the death of Ohira, new Prime Minister Zenko Suzuki had stated clearly that the return of Japan’s northern territories should be the basis of the friendship between the two countries. — AFP Oil ministry accused in accident PEKING: A commentary in the People’s 'Daily yesterday blamed top officials of the Ministry of Petroleum Industry for China’s worst oil rig disaster in the Bo Hai Gulf last November which claimed 72 lives. The commentary in the Communist Party newspaper also accused the Minister of Petroleum Industry, Song Zhenming, of having signed a cover-up report which was an “obvious deception.” “To speak fairly, the cause of the disaster should be traced to the ministry’s disregard for both subjective and objective conditions in laying down the tasks,” it said. It accused the ministry of having started no investigation for two months, and then of having “tried to cover up the facts of this most serious accident ever to occur in China’s oil industry and to shield those responsible for it” It said the first report from the ministry to the government had tried to blame the capsizing of the offshore rig on a gale of over force 10. A later report signed by Petroleum Minister Song had Changed this to a force 11 gale, but “this is obvious deception,” it said. — 270 die in Bangladesh floods DACCA: Floods and their aftermaths have claimed 270 lives and affected about 10 million people in 14 of Bangladesh’s 21 administrative districts since last week; reports reaching here Sunday said. The floods have already disrupted railway communications in Faridpur district and was threatening Dacca’s only road link with 12 northern and southern districts. Flood water has exceeded previous records in certain areas. Among the worst-hit districts are Rajshahi, Tangail, Faridpur, Rangpur and parts of Dacca. In Faridpur, 88 kilometers south of here, a railway bridge has collapsed and its girder has been washed away by the strong current from the Ganges river overflowing both banks. —AFP Page 6 Business Day Tuesday, August 26, 1980 Saudi sets takeover of Aramco NEW YORK, Aug. 25 (Reuter) — Saudi Arabia has completed its pay­ ments under the agree­ ment to take full control of Arabian American Oil Co., even though the actual takeover docu­ ments still have not been signed, Petroleum Intel­ ligence Weekly said. The newsletter said the final $1.5-billion pay­ ment was made to the four Aramco partners during the second quarter. Exxon Corp., Standard Oil Co. Cali­ fornia and Texaco Inc. each held 28.5% of Aramco and 1.45% was held by Mobil Corp. PIW said relatively few points still remain to be settled to make the 100% takeover official and final, noting that there has been no official confirmation of recent press reports that na­ tionalization will be completed in October. Due to falling copra prices Program set for coco workers who lose jobs The Ministry of Labor and Employ­ ment has launched a nationwide prog­ ram to give alternative income to coco­ nut workers who may lose their jobs due to the continued drop in copra’s world market price. The program consists of tapping other supplemental means of liveli­ hood for coconut workers, the place­ ment of retrenched workers in gainful employment locally and overseas, and the provision of permanent social and economic benefits for them. Rural Workers’ Office (RWO) di­ rector Rafael Espiritu said in an inter­ view that the amelioration program is in accordance with the presidential Letter of Instructions No. 1035 issued last June 3. INSTRUCTION. The LOI directed MOLE, the Philippine Coconut Autho­ rity, and the Coconut Producers Fed­ eration (Cocofed) to undertake social benefit programs for coconut industry workers in view of the depressed world market price of copra. In London, copra is currently quo­ ted at $430 per metric ton. The com­ modity reached its peak price at $680 per metric ton during April 1979. It averaged $614 per metric ton during that year. Espiritu said one of the program’s features is the placement of coconut workers in overseas or domestic jobs. He said MOLE’s Bureau of Employ­ ment Services (BES) has allowed a recruitment agency and a workers’ fed­ eration, the Kaisahan ng Manggagawa sa Niyugan, to recruit construction workers from depressed coconut areas, and send them overseas to work. The recruitment agency and Kaisa­ han have processed the work and travel papers of some 350 displaced coconut workers who will be sent to work for Group III Canada, which has housing projects in Egypt. The com­ pany needs 2,000 construction workWorkers to be sent abroad, Espiritu said, are those who have knowledge in masonry, carpentry, plumbing and other construction skills. WORKERS’ POOL. Espiritu said that RWO, the BES, the KMN, and the Philippine Coconut Authority recently signed a memorandum of agreement that calls for the creation of a pool of displaced coconut workers to be dep­ loyed for overseas jobs. The labor mirfistry targets about *3,000 coconut workers to be sent abroad by 1981, Espiritu said. A labor leader said 83% of those who own the country’s 2.5 million hectares of coconut plantations are seriously feeling the pinch of prevailing high production costs and copra’s low world market price. He said these landowners, who operate an average of five hectares each have taken to cultivating their own plantations to save on costs. This is a threat to the employment of about 500,000 coconut workers who comprise the industry’s “floating populace” — workers whose services are hired by plantation owners espe­ cially during harvest, he said. Domestically, copra is bought at Pl.50 per kilo. The cost of processing the commodity, however, is estimated at Pl per kilo, without including the transport costs required to shuttle the commodity to marketplaces. The labor leader added that major­ ity of the coconut landowners — as part of cost-cutting measures — now forego the scientific methods of clear­ ing, cultivation and fertilization of plantations. Mechanized cultivation of coconut land costs an average of P150 per hectare, he said. TECHNOLOGY TRANSFER. Espiritu said that under the program, MOLE will also launch technology transfer projects to enable coconut farmers to engage in enterpises that would sup­ plement their income. Among these is the massive adopt­ ion of multi-cropping techniques for coconut plantations, the transfer of tahong culture from Cavite coasts to the coastal areas of Pampanga and Tarlac, and the cultivation of giant toma­ toes for the Clark and Subic military installations. Towards the end of 1981, the amelioration program calls for the gov­ ernment to institutionalize more per­ manent economic and social benefits for coconut workers such as social sec­ urity, education, credit and housing. Likewise in the plan is the pro­ motion of a land consolidation scheme in the industry, whereby workers will be grouped together and their farm as one big plantation so as to increase production and cut cost. MOTOLITE Lasts longer with EffiELECTRO-XTRA plates Extra life you expect for continuous industrial growth. Only Motolite has Culmat Electro-. Xtra plates. Formulated to .retain active electrical charges. They keep your battery strong in all working conditions. Keep it alive longer. Motolite. With a wide range of industrial batteries to keep your industry on the move. Proven in the field of communications. Mining. Cargo transport. Shipping. And many more. REACH, INC Guidelines on unibanking (i) The sale of assets, such as shares of stock, on credit; and (j) Any other transaction as a result of which a director, officer or stockholder becomes obligated or may become obligated to the lending bank, directly or indirectly, by any means whatsoever to pay money or its equivalent. SEC. 47. Transactions not Covered. — The terms “loan,” “borrow,” “money borrowed” or “credit accommodations” as used herein shall not refer to the following transactions: (a) Advances against accrued compensation, or for the purpose of providing payment of authorized travel, legitimate expenses or other transactions for the account of the bank or for utilization of mater­ nity and other leave credits; (b) The increase in the amount of outstanding credit accommodation as a result of additional charges or advances made by the bank to protect its interest such as taxes, insurance; (c) The discount of bills of exchange drawn in good faith against actually existing values, and the discount of conimercial or business paper actually owned by the person negotiating the same, includ­ ing but not limited to the acquisition by a domestic bank of export bills from any of its directors, of­ ficers, stockholders (including foreign bank stock­ holders) and their related interests which are drawn in accordance with the terms and conditions of the covering letters of credit: Provided, That the trans­ action shall automatically be subject to the ceilings as herein provided once the director, officer or stockholder and/or their related interest who is a party to the transaction becomes directly liable to the bank; (d) Transactions with a foreign bank which ha£ stockholdings in the local bank where the foreign bank acts as guarantor through the issuance of let­ ters of credit or assignment of a deposit in a cur­ rency eligible as part of our international reserves and held in a bank in the Philippines to secure credit accommodations granted to another person or entity: Provided, That the foreign*bank stockholder shall automatically be subject to the ceilings as here­ in provided in the event that its contingent liability as guarantor becomes a real liability; and (e) Deposits of a first bank with a second bank, whether domestic or foreign, which has stockhold­ ings in the first bank. SEC. 48. Applicability to Credit Card Operations. — The credit card operations of a banking institu­ tion shall not be subject to the regulatory provisions of this Chapter where the credit card holder is a director, officer or stockholder of the bank: Pro­ vided, That (a) the privilege of becoming a credit card holder is open to all qualified persons on the basis of selective criteria which are applied by the bank to all applicants thereof; and (b) the bank director, officer or stockholder concerned reimburses the bank for advances made on availments on his credit card within a period of thirty (30) days from the date the bank made such advances. However, if the director, officer or stockholder concerned fails to reimburse the bank within the 30-day period mentioned herein, the transaction shall be subject to the applicable requirements of this Chapter. SEC. 49. Direct or Indirect Borrowings. — For purposes of these rules on loans and credit accom­ modations to directors, officers, stockholders and their related interests, a credit accommodation shall be considered a direct or indirect borrowing in ac­ cordance with the following criteria: (To be continued) Tuesday, August 26, 1980 Business Day Page 7 Zobel gives advice on ‘flexible’ planning Ayala Corporation has an estab­ lished and basic direction, and knows what it wants in the next 20 years. But its planning is being made only for the six months ahead, its president Enrique Zobel yesterday told the Management Association of the Philippines. He emphasized, however, that detailed plans are being made for that brief period, to allow “maxi­ mum flexibility.” “We look to planning to define our long-term goals and to give us alternative ways of reaching those goals, based on different assumpt­ ions. In other words, we are dev­ eloping flexible means to meet relatively inflexibility targets,” he stated. When embarking on any project, Ayala considers alternative thrusts for the project, changes in govern­ ment policies, market conditions, and availability of funds. Zobel cited the Ayala invest­ ments in Mindanao, which he said many people have been wondering about. He said he has been told that Ayala’s Mindanao Hotel, insurance operations, agri-based ventures are open to both Muslim and commu­ nist aggressions and that it might be better to pull out while the going is good. Zobel said he firmly believes in the future of Mindanao, and he believes that “a politically neutral business organization which truly provides a necessary service or product for the economy will continue to remain in operation.” During hard times, the rule Zobel has followed is not to use borrowed money. He said that by borrowing money two obvious risks are involved: on the present asspts and the new company being acquired. Zobel urged planners to review weak points in their companies. An import-dependent firm has an in­ built weakness, he said; a complete­ ly export market dependent firm is also inherently weak. He suggested that the strategy of exporting everything and discouraging local market sales is not only a disservice to the people but also is a short­ sighted posture for the company itself. Zobel said Ayala’s future plans center on basic food production. The strategy is meant to cover many eventualities. In any con­ dition food is essential, he noted. BUYING CRITERIA. What is a good company to acquire in un­ certain, recessionary, unstable times? Zobel answered: ♦ a company which has a solid market for its product; or * a company which has lost money but trimmed its operations to the point of success but has financially drained its resources in the effort. Additional criteria: ♦ when the lines of the firm complement with your own; ♦ when management can be changed easily; * when the company is not saddled with excessive collectibles and inventories from heavy borrow­ ings; and * if it enhances the profits of other businesses of the acquiring 4 export firms get incentives The Board of Investments last week approved four projects under the Export Incentives Act (Republic Act No. 6135). Heading the list of approved projects was that of Union Chemicals, Inc., an export producer of monosodium glutamate, with an annual production capacity of 1,760 metric tons. The project is expected to cost P20.78 million, to be funded with long-term loans of PIO million and equity contributions of PIO.78 million. Union Chemicals is 60% Filipino and 40% Japanese. Its parent firm, Ajinomoto Co., Inc., of Japan, will assist in its overseas marketing. It is to produce 1,760 metric tons of monosodium glutamate (from sugarcane molasses) annually, and export at least half of this amount to Canada, Italy and Australia. OTHERS. Also approved under the Export Incentives Act were: ♦ Naguia Manufacturing, Inc., an export producer of garments, with an annual production capacity of 14 5,000 pieces. Project cost is placed at P4.09 million. Target export markets are Japan, United States, Panama, Australia, New Zealand and Italy; ♦ Pacific Seamen Services, Inc., a service exporter in shipping personnel management; ♦ Trans-Global Maritime Agency, Inc., another service exporter in shipping personnel management, which has an agreement with Exxon Corp, of the United States to supply manpower to two Exxon subsidiaries, Esso Tankers, Inc. and Esso Singapore Private Ltd. BOI approves MMIC’s $123-M shift to coal The Marinduque Mining and Industrial Corp.’s project to shift from oil-fired to coal-fired nickel operations has been approved by the Board of Investments for registration under the first (1980) energy priorities program, which will entitle MMIC to incentives granted under the Investment Incentives Act (Republic Act No. 5186). MMIC’s project, which will cost $122.76 million (roughly P920.67 million), involves the acquisition of two coal-fired boilers to replace the three oil-fired boilers at its Nonoc nickel refinery. The present, machineries consume about $75 million worth of bunker oil a year. Anti-pollution filter up for demonstration Claude Laval III, head of an American corporation which manufactures a novel filtering equipment for environmental protection, will arrive tomorrow to introduce the product to prospective users in the Philippines. This was announced yesterday by Jesus T. Maglutac, president of Commart (Phils.), Inc. licensed distributor in Asia of Claude Laval Corp, for its Lakos separator, a centrifugal filter that removes solids from liquids. Laval will demonstrate the equipment to present and pros­ pective clients. According to MMIC chairman and president Jesus S. Cabarrus, the project is expected to reduce the Nonoc refinery’s fuel cost by 40% or rou^ily $30 million a year. PRIVILEGE. For the conversion, the government is giving MMIC an extra two-year exemption from taxes, except income tax. MMIC had a five-year tax exemption which expired on Dec. 31, 1979. Cabarrus had said that the government, “recognizing the impact of continuously escalating fuel prices and the almost complete dependence on oil 'in our nickel operations,” extended the privilege for another two years. “In return, MMIC is expected to actively pursue the conversion of the present oil-powered facilities to coal” Also part of the coal conversion program are the construction of new pier facilities capable of berthing 60,000 dry metric tons of ore and coal carriers, installation of coal unloading and storage facilities, installation of 'Conveyor systems, and development of stockpile and reclamation areas. According to MMIC, new boilers are needed because the present ones cannot be converted to run on coal, and the nickel refinery needs to run continuously. The new boilers are designed to accept a wide range of coal types with heating capacity values of 8,500 BTU (British thermal units) per pound up to 12,000 BTU per pound. This will allow MMIC to uti­ lize indigenous coal resources once available. Initially, MMIC will de­ pend on imported coaL Enrique Zobel Farmer-banker, sportsman, visionary, Filipino. He flies Philippine Airlines Business Day Tuesday, August 26, 1980 Sugar workers press ln tirst 7 months demand for price hike BOP deficit trimmed to $223M By RODRIGO V. ALVAREZ Reporter By JOSE P. OMPOC, Jr. Reporter Sugar workers have petitioned Labor Minister Blas F. Ople to forward to President Marcos their proposal for the National Sugar Trading Corp. (Nasutra), the sole domestic outfit authorized to trade in sugar, to increase sugar’s composite (buying) price from the present P105 per picul to Pl30. starting cropyear 1980-1981. The cropyear starts next month and ends next August. Sugar workers said that at the new composite price, millers and plantation owners will be obliged to provide workers the required wage increases stipulated under various presidential decrees. These employers have been exempted from the wage decrees because of the previously depressed world sugar prices. The proposal came from the National Congress of Unions in the Sugar Industry of the Philippines, Pasumi Laborers and Employes Association, Central Azucarera de Tarlac Labor Union, Pasudeco Workers Union, and the Murcia Central Workers Union. The unions asked Nasutra to declare that the composite price of sugar for cropyear 1979-1980 has effectively reached P110 per picul, and not P105 per picul which Nasutra pays at present to producers. Millers and plantation owners have expressed indignance over Nasutra’s inability to raise the effective composite price to P110 per picul, in spite of the commodity’s booming price in the world market. They have expressed disagreement over the previous public announcements of Nasutra specifying the prices of export sugar contracted this year to buyers from Indonesia, Russia, Japan, South Korea, France, Iraq, and the United States. NASUTRA. Earlier, Nasutra executive vice-president Jose A. Unson said Nasutra will be able to pay sugar exporters Pl 10 per picul in December, or when the country’s total exports shall have been fully sold and delivered to buyers. Companies borrowed P164B thru OP issues in 1st half Short-term borrowings of the business sector from the public through commercial papers amounted to Pl63.9 billion during the first semester of the year, 21% more than P135.1 billion during the same period last year, according to statistics from the Securities and Exchange Commission. That would point to very active mo hey market transactions this year, since the SEC only approved P55.7 billion worth of commercial papers, the total debt ceiling of the companies, for the period. The SEC said “the registration of short-term commercial paper is an open-end process,” which allows a company to issue commercial papers up to its authorized debt ceiling “at any one time.” A com­ pany that has redeemed previous isADB technical grant to Manila grain terminal 'Die Asian Development Bank yesterday said it has approved a technical assistance grant of undis­ closed size to the Philippine gov­ ernment for a grain terminal project in Manila Under the grant, a feasibility study will be made to determine the need for a grain terminal in Manila and the commodities ’that could be handled there. The study will look into the managerial and institutional re­ quirements like the financial and economic viability of the Manila grain terminal project and examine the ecological and social aspects. — Reuter He said that if there are adequate cargo ships and if buyers are willing to acquire their sugar at earlier schedules, Nasutra will try to complete deliveries by October. The unions also asked Ople to request the President to change the present profit-sharing scheme for sugar exports. They stressed that the current “fifty-fifty sharing (of Nasutra and sugar producers) be made into seventy-thirty in favor of producers,” so that employers could afford higher production costs. Unions representing the country’s mill and plantation workers are scheduled to meet Saturday and Sunday in Bacolod City to formalize the unification of the workers* unions in line with the “one-union, one-industry” con­ cept expoused by the Labor Code. STRIKE? Among the likely things to be discussed is the unions' plan to hold a nationwide strike, in pro­ test against millers' and plantation owners’ inability to provide the supposed wage increase due them. These wage increases are the P60 monthly emergency living allowance under PD No. 1123, the P60 allowance under PD No. 1614, and the P90 allowance under PD No. 1634, which employers had pledged to pay if Nasutra increases sugar’s composite prices to P110 or P130 per picul. Union leaders disclosed that at present, the P2 daily allowance for non-agricultural workers and the Pl.50 allowance for agricultural workers under PD No. 1678 are generally not given to workers in the sugar industry. They further expressed doubts that employers will be able to comply with the Pl increase in the basic daily pay and the P60 monthly emergency allowance under PD No. 1713 recently been signed by President Marcos. Millers and producers say they are willing to give workers higher pay provided that the government will pay producers a higher composite price for sugar. TRADE DEFICIT. The cumulative trade deficit this year came to $937.87 million, an improvement over the $941.43 deficit posted for the same period in 1979. The top export item consisted of mineral products, which are enjoy­ ing favorable international prices as a result of political and economic uncertainties. Exports of copper concentrates, gold, nickel and other such minerals reached $712.24 million, more than double the $301.68 million realized during the period last year. Copper concentrates alone ac­ counted for $429.61 million of this year’s mineral product export re­ ceipts. Last year’s copper concen­ trate export earnings came to $199 million. Non-traditional manufactures were the second leading export group with foreign exchange earn­ ings of $682.31 million — 31.2% more than last year’s $519.97 mil­ lion. Of them, garments accounted for $173.88 million while electric and electronic equipment and spare parts contributed $79.73 million. Other major export items in this group were textile yams and fabrics ($55.61 million), chemicals ($47.79 ___ _ _____________ million), furniture and fixtures • two oil wells with ._ ,_____, ...... ($45.81 million), wood manufacduring February when the balance • tures ($49.49 million), non-metalamounted to P27.1 billion. ----- ’------- *““*■----- “ On the other hand, the highest monthly issuance, at P29.4 billion, was recorded on April, and the lowest was P25.7 billion in May. If the money market can absorb at least P26 billion worth of commercial papers each month, which is higher than the outstanding balance as of the end of the first semester, some of those investible funds must have gone to other forms of investment. STOCK MARKET. Incidentally, it could not be the stock market, since the amount of turnovers in the exchanges has been on the decline since March. In fact, turnovers in the first half of the year totaled only P2.88 billion, compared with P3.04 billion in the same period last year. The SEC review of the short­ term commercial paper showed that banks were allowed to float P29 bil­ lion, or 52% of the limit for the period, but it was silent on the amount actually issued by banks. Financial institutions with quasi-banking functions (FIQBs) functions were authorized to issue P14.7 billion, 26.4% of the total, but the report again does not state the amount issued. Companies had a debt limit of P12 billion, 21.5% of the overall limit, while they issued Pl8.9 bil­ lion, about 11% of the total amount (P163.9 billion) issued during the period. sues can thus float a different set of papers provided the total does not exceed the debt ceiling. As of last June, P18.7 billion worth of commercial papers were not yet redeemed. That month had the lowest outstanding balance for the period, while the highest was. The Philippines posted a $22.75-million balance of payments deficit for July, bringing the total since January to $223.42 million, the Central Bank reported yester­ day. The seven-month deficit, how­ ever, was better than the $426.66 million deficit recorded for the same period last year. As in the past, the deficit was largely due to insufficient export receipts to pay for imports, part­ icularly crude oil. A significant development during the month was the decelera­ tion in both imports and exports, indicating retrenchment moves by the private sector as a result of re­ cessionary pressures. Exports in July amounted to $400.03 million, 15.4% more than the same month in 1979. This growth rate is far below the average 35% recorded in recent years. Although imports expanded by 13.2%, to $491.31 million, this growth rate was lower than pre­ vious rates. Overall, however, exports for the first seven months grew by 33.7% to $2,794 million against $2,090 million for the same period in 1979. On the other hand, import pay­ ments totaled $3,732 million this year against $3,032 million last year. lie mineral manufactures ($40.55 million), and machinery and trans­ port equipment ($24.78 million). Coconut was still among the major export earners, although its contribution had considerably declined as a result of a drop in pri­ ces due to a glut in vegetable oils in the world market following the US embargo on exports to the USSR. Coconut product exports BIR clarifies sales discounts The Bureau of Internal Revenue yesterday ruled that discounts may be allowed as a deduction from the gross selling price from an item. But such discounts, BIR said should be at the time of the sale and indicated in the sales invoice. The BIR issued this ruling to clarify queries from taxpayers. The BIR said only bona fide discounts given to purchasers are deductible from the gross selling price for the purpose of computing the sales tax. The bureau stressed that the discounts must be expressly indicated in the sales invoice. Thus, discounts for prompt payment, for volume sales or other special or confidential reasons not indicated in the sales invoice are not deductible. amounted to $407.06 million, a 24.1% drop from last year’s $536.46 million for the comparable period. Coconut oil accounted for $265.59 million, although again this was lower than last year’s $383.56 million. Sugar and its byproducts were the fourth leading export group with foreign exchange earnings of $291.78 million, almost twice last year’s $146.11 million. The major portion of this came from exports of centrifugal and refined sugar with receipts of $271 million. An­ other $19.07 million came from ex­ ports of molasses. Forest products earned $278.34 million for the seven-month period, slightly higher than last year’s $259.3 million. Revenues from lumber amounted to $147.26 mil­ lion, from logs $57.27 million and from plywood $28.2 million. Fruits and vegetables earned $157.98 million, a 6% decline from last year. Pineapple products turned in $41.64 million while bananas contributed $85.29 million. IMPORTS. On the import side, the CB reported that over four-fifths or $3,029 million of total import pay­ ments consisted of essential items. Essential producer items alone cost $2,929 million, while the remaining $100.46 million were for import­ ations of essential consumer items. Classified by end-use, the CB said producer good importations reached $3,586 million, while con­ sumer goods amounted to $145.68 million. It noted that for producer goods, semi-processed raw materials cost $1,633 million; unprocessed raw materials, $1,237 million; ma­ chinery and equipment, $533.53 million; and supplies, $182.49 mil­ lion. For consumer good imports, $128.6 million were for non-dura­ ble items while the remaining $17.08 million were for durable Oil strike at Batas 1? The Philippines Cities Service, Inc. (PCSI) yesterday completed the first of a series of drill stem tests (DSTs) on its exploratory oil well, Batas I, and there is a strong possibility that this will be another oil strike, the Ministry of Energy announced yesterday. Batas I is located four kilometers west of the Cadlao structure where . .. combined production capacity of 9,680 bar­ rels a day were drilled and are awaiting development. DSTs are tests conducted to determine the characteristics of oil structures. It also enables oil explorers to determine the rate of oil flow. Based on the result of the first DST, PCSI gave Batas I a 50-50 RP-Indon trade discussed Indonesia is inviting Filipino investors in the pharmaceutical industry, Indonesian Ambassador to the Philippines Soedarmono said yesterday. In an open forum following his address yesterday at the Chamber of International Trade, Soedar­ mono also said trade relations between the Philippines and Indo­ nesia will still have to see the development of the tourism and shipping industries. He said that while trade between the two countries has shown significant growth in the past five years, not much has been done by both nations to enhance trade in these areas. Soedarmono said that with In­ donesia’s 145 million population, “it will take a long time for the country to become self-sufficient in medicine.” The Philippines last year ex­ ported to Indonesia $38,686-worth of vitamins, analgesics and anti­ goods. The seven-month $937.87 mil­ lion trade deficit was mostly offset by surpluses obtained from “invi­ sible” transactions, such as foreign borrowings, tourism earnings, and services including insurance. Foreign borrowings for the seven-month period totaled $1,897 million, although during the same period $1,372 million in outstand­ ing foreign obligations were repaid. The government sector alone borrowed $1,249 million during the seven months. Its borrowings in July totaled $304.34 million, of which $196.99 million were short­ term or those having a maturity of less than a year. The private sector’s new foreign borrowings for the period totaled $647.84 million. INVESTMENTS. New foreign in| vestments for the period totaled ! $123.72 million against $91.44 mil| lion for the comparable period last i year. Current account transactions, a form of invisibles transaction, con> tributed $1,136 million in foreign r exchange receipts. These came mainly from foreign exchange remitted to the Philipt pines by overseas Filipino laborers > ($210.56 million), services - ($400.07 million), tourism ($120.06 million), interest income 1 ($156.88 million), expenditures of i the US government in this country ($113.14 million) and personal exl penses of transients ($37.85 mil­ lion). Transfer account transactions, s another form of invisibles transactI ion, contributed $193.44 million for the period. These were derived I from personal remittances of for­ eigners to Philippine residents ($109.05 million), pensions re, ceived by Philippine residents from the US government ($58.03 mil; lion) and foreign donations and contributions ($26.36 million). chance of becoming another dis­ covery well. The well was 7,900 feet deep. Depending on the results of two other DSTs to be conducted on the well Wednesday, PCSI intends to spud another exploratory well in the south Pandan area, about three kilometers southeast of Pandan I, a discovery well with an established flow rate of 6,154 barrels a day. Originally, PCSI was to drill Tara I which is north of Libro I, a discovery oil well located between the Matinloc and Cadlao areas. However, with the possibility of Batas I being another discovery well, PCSI decided to accelerate the development program for the Matinloc and Pandan structures. pyretic products, and other phar­ maceutical and medicinal products. “We still have to do lot of things together, particularly in small pro­ jects such as pharmaceuticals,” he said. He added that the Philippines and Indonesia seem to be producing the same products, for which both compete in the international marBusiness Data • Money Market • Stocks New Products • Commodity Exchange VOL. XIV, NO. 129 TUESDAY, AUGUST 26,1980 SECTION II PAGE 9 GEKKEIKAN THE FINEST JAPANESE SAKE WB plans $13-B loan to havenots over next 5 years WASHINGTON (Reuter) - The World Bank has announced plans to lend about $13 billion over the next five years for energy programs in developing countries. In a report entitled “Energy in the Developing Countries,” the World Bank said many of these nations rely on rapidly diminishing sources such as firewood and charcoal for more than half their needs. “The demand for fuel wood, the most important source of traditional energy for residential uses, has grown faster than supply ... the report said “Many developing countries are therefore facing a second energy crisis,” it said. “The magnitude of the fuel crisis is immense.” The report added: “As fuelwood supplies are exhausted, animal and crop residues are burned, depriving the soils of valuable nutrients and organic conditioning material. ” 92 BENEFICIARIES. The $13-billion to be offered to 92 developing countries, represents 17% of the bank’s total lending commitments, the report said. Lending for oil and gas is expected to total almost $4 billion for the financial years 1981-1985. The total energy lending program also includes reforestation and developing other renewable resources as well as coal, nuclear power and natural gas. World Bank president Robert McNamara, in an introduction to the report, noted: “In 1980, these countries will spend $50 billion on importing oil. “If their domestic production grows no faster than in recent years, their oil imports will rise by 1990 to $110 billion... . ” McNamara added that “by maximizing energy production between now and the end of the decade and by a vigorous program of energy conservation,” oil imports in 1990 could be cut by up to $30 billion. He said the bank’s resources were insufficient to meet all essential investment needs for these developing countries so the organization will explore the possibility of establishing an energy affiliate of the bank. Chilean copper output to rise to 1.5-M MT by ’90 SANTIAGO (Reuter) — Chile’s copper production should rise to at least 1.5 million metric tons a year by 1990 from its present level of around one million MT, vice-president of the Chilean copper commission General Ruben Schindler said. He told Reuters in an interview the bulk of the extra production will come on stream during the second part of this decade. Schindler said output for the next few years will continue unchanged at around the 1979 level of 1.06 million MT of fine copper, as will exports which last year totaled 1.0 million MT. The estimate of the rise in production takes into account a number of new mining projects currently being studied by private companies although not yet finally approved. US marts sensitive to Chinese crop reports PEKING (Reuter) - Chinese officials feel US commodity marketshave been too sensitive in their reaction to reports on Chinese agriculture, and specifically reports of possible damage to the current cotton crop, in­ formed sources said. The sources quoted officials as saying they themselves did not yet know the extent of damage to China’s cotton crop as a result of rain and floods, but they had the impression the da­ mage was localized. Foreign agricultural sources have estimated China was likely to re­ quire around two million bales of US cotton this year, the same as last year, but this would depend on the price. Taiwan trade deficit now totals $524M TAIPEI (Reuter) - Taiwan had a trade defi­ cit of $103 million in the first 16 days of August, pushing the country’s trade shortfall to $524 million since the start of the year, according to preliminary customs sta­ tistics. In the same period last year Taiwan had a trade surplus of $792 million. The worsened trade performance was attribu­ ted to rising oil costs and a large increase in ma­ chinery imports. Congress panel urges $25-B tax cut to hasten economic recovery WASHINGTON (Reuter) — The congressional joint economic committee has urged tax cuts to speed economic recovery from a recession in 1981. The committee of senators and members of the House of Representatives suggested a $25-billion tax cut with half of it designed to promote sluggish US growth. In its midyear report on the economy, the committee also gave indirect backing to the Senate finance committee drive to cut business and individual taxes by $39 billion. The recommendation for tax cuts received bi­ partisan economic committee support, but some members said more should be done to move the nation out of recession. Senator Edward Kennedy (Democrat, Massachusetts) repeated his plea for wage and price controls, a $12-billion jobs program and gasoline rationing, which he advocated during his bid for the Democratic presidential nomination. Economic committee chairman Lloyd Bentsen (Democrat, Texas) said a study of six post-World War II recessions showed that the government can do little to influence the course of downturns in the economy. The committee recommended that government and private job training programs be restructured to relieve unemployment and prepare people for jobs needed in private industry during the 1980s. Aussie money supply growth strong SYDNEY (Reuter)Australian money supply (M3) growth of 12.9% in fiscal year 1979/80, July/June, was too strong, the Reserve Bank of Australia said in its an­ nual report Commenting on possi­ ble reasons for this, the bank said the govern­ ment appeared to have placed too much empha­ sis on the need to avoid disruption in the market place at the expense of the more desirable aim of increasing interest rate flexibility. MAJOR WEAPON. Money supply growth control is seen by Treasu­ rer John Howard as the Treasury’s major weapon in the fight against infla­ tion but the bank noted that such strong growth had not contributed to this end. It said government bond sales could have been higher during the year had yields been lif­ ted to match soaring overseas rates but it was decided instead to follow the market rather than try to jump ahead and es­ tablish new selling plat­ forms. This had illustrated the susceptibility of the Australian capital market to developments in inter­ national markets, the bank added. DEMAND. The Reserve Bank said it was not until late in the year that yields came into line with the higher market rates and demand picked up. This coincided with the introduction of the new tap system and the bank added the expe­ rience with this develop­ ment proved satisfactory. The bank said a larger non-bank take-up of bonds during the year would have led to the vo­ lume of money being d irectly reduced, bank lending and lending by non-bank corporation being restrained and pri­ vate liquidity being kept in hand. OUTLOOK. Turning to the outlook for 1980/81, the bank said there is a need for firmer policies with the demand for finance for business and government projects like­ ly to remain strong. Consequently the Re­ serve Bank is looking to trading banks to try and restrain lending to an an­ nual growth of not more than 10%, the same target it set last year. The eventual outturn was 17% and the reserve bank noted that this was accounted for by fuller use of overdraft limits. S’pore top Asean nation for direct Japan investments SINGAPORE (Reuter) — Singapore overtook Indonesia to become the leading ASEAN country for Japan’s direct overseas investments in fiscal 1979 ended March 30, the Japanese External Trade Organization (JETRO) bulletin issued by the J^pan Trade Center said. Of the $595 million invested in the Association of Southeast Asian Nations (ASEAN) last year, Singapore accounted for $255 million or 42.8%, it said. Indonesia took $150 million, and of the other three ASEAN countries, the Philippines $102 million, Thailand $55 million and Malaysia 33 million. The Toughest Sleek INVESTMENT. Total investment in the copper mining industry this decade, including maintenance and the cost of the new mines under study, is estimated at about $6.5 billion. All new mining capacity will be brought on stream by private companie , and financed by those companies, while output from state-owned mines will continue around the present level of 850,000 MT a year, Schindler said. The expected rise in output should be sufficient to maintain Chile’s share of the world market at 13% on present demand projections. Government policy is to reduce the role of the state in the economy and state-owned mines could be offered for sale to the private sector in the longer term. CAPACITY. Schindler said refinery capacity within the country is set to rise to 806,000 MT a year next year from the present level of 789,000 when a new refinery, Lo Aguirre, comes on stream. However, there are no plans beyond this to increase refinery capacity and this will be up to private companies to decide. He said Chile’s recoverable reserves of fine copper are estimated at 123 million MT, the largest in the world. FJORD boats of the famous. Norwegian designs are sold everywhere in EUROPE, ASIA, AUSTRALIA and U.S.A. Buy them right off the factory and SAVE thousands of dollars Illi FJORD PHILS., INC. builds not only exceptional pleasure boats but extremely seaworthy, comfortable boats from 19 DAYCRUISERS to 24 DAYCRUISERS AND WEEKENDERS AND NOW, 900 CABIN CRUISERS.......... • Sleek to the modern architecture and design with practicability and strong and stable construction 900 CC Hurryl Return this to: FJORD PHILIPPINES, INC. P.O. BOX 100 BATAAN EXPORT PROCESSING ZONE MARIVELES, BATAAN TEL. NO. (469) 2170 TELEX: 40813 FJORD PM 61347 FJORD PN Page 10 Business Day Tuesday, August 26, 1980 METALS COPPER (NY) — cents Open Commodities FUTURES QUOTATIONS FRIDAY, AUGUST 22, 1980 Afloat FOREX TRADING 88.00b/89.00A 88.30B/88.50A 89.00B/89.50A 90.80B/91.00A 91.30B/91.70A 92.70B/92.90A 94.30B/94.50A 95.40B/95.60A 96.70B/97.00A 98.80B/99.00A 99.20B/99.70A _____ 100.60B/101.50A 102.75 102.00B/102.20A 103.95 s: 4,500 (25,000 lbs.) 90.75 90.80LZ91.00H 91.70 92.80LZ93.30H 93.80 95.00LZ95.40H 96.20L/96.25H 97.65 99.00 101.00 101.55 The guiding rate for today is P7.S58 to US$1, a change of PO.OOOS from yes­ terday’s P7.5575. Transactions at the Foreign Exchange Trading Center yes­ terday amounted to $ 2 million. Sellers were Bank of the Philippine Islands and Philippine Trust Company ($1 mil­ lion each). Close GRAINS & OILSEEDS Aug’80 634.2B/635.1 Sep ««•«..---- -Dec Feb Apl Oct Dec Feb Apl Est. sales: 20,000 (100 troy Prev. sales: 32,599 636.7B/637.7A 642.0 654.0 668.5 686.5 699.0B/700.0A 714.0B/715.0A 729.0B/730.0A 744.0B/745.0A 759.2B/760.2A 774.6B/775.6A 790.1B/791.1A 635.0 638.8 642.5 L/644.5H 656.5LZ658.5H 673.0 688.0 702.9 716.0LZ718.0H 733.3 748.7 764.2 779.7 795.3 oz.) GOLD (Hong Kong) — US dollars per troy oz. Close Dec Feb 660.20/661.70 677X0/679.00 689.00/692.00 704.00/707.00 725.00/728.00 736.00/740.00 663.50/664.20 677.00/679.00 691.00/693.00 705.50/707.00 719.00/720.50 733.00/734.00 1620B/1640A 1635B/1639A 1645/165SA 1688B/1690A 1704B/1710A 1756B/1760A 1775B/1790A 18O5B/1835A 1868B/1880A 1920B/1940A 1935B/1955A 1970B/1995A 2010B/2035A 1631.5 1633L/1635H 1651.5 1683LZ1688H 1705.5 1743.5 1781.5 1819.5 1857.5 1914.5 1933.5 1971.5 ------------------ 2009.5 Est. sales: 1,800 (5,000 troy oz.’ Prev. sales: 2,571 r.) FOOD & SPICES Close 32.00 L/32.10H 32.95L/33.00H 33.80B/34.10A 1 34.50LZ34.60 r 33.80LZ33.90H 32.85L/32.90H 31.15B/31.25A 30.50L/30.60H 27.00B/28.75A ___ sales: 13,651 (112,000 lbs) r. sales: 10,443 . 30.90L/31.00H 33X0A 33.54 32.86 31.90 30.50B/30.70A 29.70L/29.80H 28.40B/27.50A SUGAR (London) — pound stg. per long ton New Contract Oct .......... Meh May Aug Oct Jan Sales: Tone: Easy Seller Sales 327.00 327.25 341.00 341.50 344.70 344.75 339.25 339.50 324.75 326.50 313.00 314.00 293.00 395.00 :: 5,763 (50 long tons) Sep'80 Dec Meh May Jiy Sep Dec Est. salt 131.50LZ131.99H 142.25A 143.5 9A . 146.03A 147.50A 148.50A 148.75A COFFEE ROBUSTA (London) — pound stg. per metric ton Sales Sep Nov Meh May j|y Sep 1128 1176 1209 1196 1212 1225 1220 1130 1177 1212 1200 1219 1230 1250 COCOA (London)- pound stg. Seller Sales 954 1044 1068 1089 1114 1134 136 435 432 210 45 Nil 40 VEGETABLE OILS (US) — cents COCONUT OIL (Philippines): Crude CIF New York bulk Sep/Oct 28-1/4A Crude FOB tankcars Gulf Spot Unq Sep Unq Oct 30A DESICCATED COCONUT (Philippines): FOB W. Coast In 10,000 lb lots 80N LINSEED OIL: Crude FOB Minneapolis, tankcars 30N TUNG OIL (Argentine): Crude FOB tankcars New York 43N CASTOR OIL (Brazil) Number One: Crude FOB tankcars New York 49-1/4N PALM OIL Any Origin: Neutralized palm oil CIF F.R. Nov 25-3/4N Refined bleached deodorized CIF F.R. Nov 25-1/4N PALM KERNEL OIL Any Origin: Crude CIF New York Oct/Nov 27-3/4A OLIVE OIL (Spain) “Riviera Type": Edible duty free ex-warehouse (Dollarsper six one-gallon tins)44.50/46.! SEEDS (London) COPRA Philippines (Dollars per long ton, CIF N. Euro ports) Sep/Oct 425 reslr. SOYBEAN US (Dollars per long ton, CIF Tilbury) Oct Nov INTERBANK RATE The average inter­ bank demand rate quoted yesterday was 11.71%, accord­ ing to traders from 16 participating institutions. Traders re p orted rates ranging from 16% to 10%. Borrowers out­ numbered lenders. Authorized minimum buying rates of authorized agent banks and foreign exchange dealers from tourists, transients and residents* for August 26, 1980 BD CURRENCY CONVERSION TABLE Currency August 26,1980 Equivalent of foreign currency in RP peso** Equivalent of RP P1 in foreign currency Equivalent of foreign currency in USdoJlar_*_ Equivalent of US$1 in foreign, cijrrency US dollar - - 7.5575 .1323 Japanese yen .004448 224.8201 .0336 29.7619 Pound sterling 2.3605 .4236 17.8395 .0561 German D-mark .5554 1.8005 4.1974 .2382 Australian dollar 1.1582 .8634 8.7531 .1142 French franc .2392 4.1806 1.8078 .5532 Hong Kong dollar .2018 4.9554 1.5251 .6557 Canadian dollar .8638 1.1577 6.5282 .1532 Netherland guilder .5104 1.9592 3.8573 .2592 Italian lire .001168 856.1644 .0088 113.6364 Belgian franc • .0346 28.9017- .2615 3.8241 Singapore dollar .4698 2.1286 3.5505 .2817 Austrian schilling .0784 12.7551 .5925 1.6878 Norwegian kroner .2055 4.8662 1.5531 .6439 Danish kroner .1792 5.5804 1.3543 .7384 Swiss franc .6020 1.6611 4.5496 .2198 Swedish kroner .2383 4.1964 L 1.8010 .5552 Spanish peseta .0130 76.9231 .0982 10.1833 Taiwan dollar .0295 33.8983 .2229 4.4863 Thailand baht .0510 19.6078 .3854 2.5947 Chinese renminbi*’1'* .6754 1.4807 5.1043 .1959 ‘New York free exchange rate: sellers’ quotations as of August 22, 1980 ; the Central Bank for August 25, 1980. **The FOREX guiding rate Is used In computing the RP peso equivalent ***Peklrig exchange rate (Reuter) is quoted by Monetary Movements 319 320 unquoted. OILS (Rotterdam) Gold closed Friday in London at $.6 34 an ounce, almost unchanged from its previous close .son while in Hong Kong it close higher at $644. The US dollar lost ground in New York against most major currencies while it closed firm in London and Tokyo, weak in Hong Kong, lower in Singapore. COCONUT OIL Philippine Basis 3 Max (Dollars per long ton) Sep/Oct 625 sir Oct/Nov 630 down 5 sir with Nov/Dec Open 753H/752L 771H/770L 786H/783L 799H/797L 802.50 801.50 796 785 Close Sep Nov Jan Meh May Jiy Sep RED BEAN (Tokyo) — yen Open Aug 27,990 Sep 27,780 (L-up) Oct 28,010 (L-up) Nov 30,200 (l-up) Dec 30,240 (L-up) Jan 30,400 (L-up) 748L/749H 764LZ768H 778L/780H 793L/795H 802I/803H 802L/803.50H 796 784 per 60 kilos Close 28,180 27,780 (L-up) 28,010 (L-up) 30,200 (L-up) 30,240 (L-up) 30,400 (L-UP) WHITE BEAN (Tokyo) - yen per 60 kilos): Open Close RUBBER (London) — pence per kilo Sales Buyer 62.80 63.80 : 64.70 > 68.30 71.40 74.30 : 76.80 1 79.30 81.90 Seller Oct Oct/Dec Jan/Mch Apl/Jne Jly/Sep Oct/Dec Jan/Mch Apl/Jne RUBBER (Singapore ) — ONE Nov Dec Jan/Mch Apl/Jne Jly/Sep Oct/Dec 24 30 8 181 161 9 9 5 310.50 313.50 319.00 328.00 nom 335.00 nom 342.00 nom RUBBER (Malaysia) - cents per kilo Seller Gold closed at $634.50/636 an ounce in London after fairly active trading highlighted by a flurry of morning buying on the basis of shortlived rumors that US hostages in Iran had been shot, dealers said. They said the metal rose sharply from its ope­ ning around the $642.50 mark to $647/648 as dealers reacted to the ru­ mor, but it dropped quickly after an Iranian government denial to a $639.50 morning fix. The price held firm un­ til the afternoon fix at $639.20, but tended to lose steam towards the close with some profit taking and book-squar­ ing, dealers said. In Hong Kong, the in­ ternational gold price closed at $644/646 an ounce, higher than Thurs­ day night’s New York finish of $638/640 and the previous close here of $643/644. The price touched a high df $647/649 before moving back towards the close on some profit-tak­ ing. In the local market, gold moved higher for the same reason, to close at HK$3,782 per tael, com­ pared with Thursday’s HK$2,768, dealers said. The krugerrand price rose HK$11 to HK$3,329, equivalent to US$672. NY dollar lower The dollar lost grpund in New York in thin afternoon trading to close lower than at last night’s close against most major currencies, dealers said. The dollar was hit by profit-taking and book­ squaring ahead of the weekend, amid nervous­ ness about money supply figures released late in the day. The dollar closed at 1.8005/15 marks and 1.6610/30 Swiss francs, compared to last night’s 1.8070/80 and 1.6675/90 close. Sterling was also hit by profit-taking in after­ noon trading as and it fell to $2.3595/3605 from Thursday night’s $2.3645/55. The dollar fell to 223.00/10 yen and 1.1576/80 Canadian dol­ lars from Thursday’s 225.10/25and 1.1619/22. Dollar firm in UK The dollar closed gene­ rally firm in London in quiet trading ahead of thelong UK bank holiday weekend, although it weakened against the yen, dealers said. The dollar was suppor­ ted by basically firm E urodollar rates which closed with net gains of around 1/4 point follow­ ing Thursday’s rise in the fed funds rate to 10-1/1/8%, at which level the rate remained in early New York money market trading. The dollar closed at 1.8075/85 marks com­ pared with an opening 1.8065/75 and a Thursday close of 1.7945/55 and a close last Friday of 1.7850/60. But it closed at 223.70/85 yen, down from a Tokyo close of 225.30/40. The dollar closed at 1.6725/45 Swiss francs compared with 1.6535/55 Thursday’s close and at $2.3655/65 against ster­ ling compared with $2.3703/10, but sterling’s ONES Dec Jan/Mch Apl/Jne Close Sep Nov Jan Meh May Jiy Sep — JNov — LUMBER (Chicago) — dollars per 1,000 bd. ft. Open 189.60L/190.00H 195.60 192.20 201.70LZ202.00H 211.20H/211.00L 221.50 229.00 188.00 193.80L/194.20H 189.50L/190.00H 199.90H/199.30L 209.50L/210.40H 221.00T/221.60B 228.00A 230.00B Japanese yen 0.0331 Italian lire 0.0084 Australian dollar 8.57 Austrian schilling 0.5798 Hong Kong dollar 1.47 Singapore dollar 3.47 Belgian franc 0.2558 Malaysian dollar 3.44 •In those cases where the authorized foreign exchange dealer is specifically authorized to purchase/convert currencies sold by residents. Source: Central Bank US dollar Canadian dollar British pound Netherland guilder Swiss franc French franc Deutsche mark trade weighted index closed at 75.7 compared with 75.6. Tokyo dollar firm The US dollar for overnight delivery closed firmer in Tokyo at 225.35 yen, compared with a 225.10 opening and 224.50 at Thursday’s close, dealers said. Trading was fairly active with volume $834 million. The US currency edged up on renewed buying by foreign banks in mode­ rate late trading, after initial firmness reflecting its overnight strength against major currencies in New York. The rate fell briefly to 224.90 yen after its ini­ tial gain which had at­ tracted export covering by Japanese traders, dealers said. The dollar for imme­ diate delivery last traded at 225.16 yen, unchanged from the opening but up from 224.50 last traded. The US dollar weak­ ened in Hong Kong against major currencies on an unconfirmed re­ port that some of the US hostages in Teheran had been shot while attempt­ ing to escape, dealers said. The dollar had risen slightly this morning to a 1.80 70/7 5, before slipping to a late 1.8035/45. Dealers said trading was thin, however, with operators nervous or skeptical of the report, while many banks had closed early ahead of the weekend. The US unit weakened to a late 1.6660/70 Swiss francs after trading earlier around its New York close of 1.6680/90, while sterling recovered to $2.3655/65 after slip­ ping to $2.3615/25 from $2.3645/55 in New York. The dollar stood at a late 224.90/225 yen against an early 225.25/35 and 225.10/25 in New, York. The Hong Kong dollar made some ground to a late 4.9500/10 to the US unit from 4.9510/20. Dollar down in Singapore The US dollar closed in Singapore slightly lower against most major cur­ rencies compared with New York’s close, after moving erratically in late nervous and thin trading, dealers said. , .. . Trading was quiet during the morning with the US dollar hovering around opening levels but weakened in early afternoon trading. US copper output up WASHINGTON (Reu­ ter) — Production of US copper at primary refineATLAS CONSOLIDATED MINING AND DEVELOPMENT CORPORATION NOTICE OF CASH DIVIDEND Notice is hereby given that at the special meeting of the Board of Directors of ATLAS CONSOLIDATED MINING AND DEVELOP­ MENT CORPORATION held on July 23, 1980, a regular cash dividend of THIRTY CENTAVOS (P0.30), plus an extra TEN CENTAVOS (P0.10), per share, was declared by the Board, upon the consent of the Corporation’s bank creditors and approval of the Board of Investments, payable on October 6, 1980 to stockholders of record on September 5, 1980 (SGD.) ANTONIO R-INFANTE Corporate Secretary ries. and secondary plants rose to 209,039 metric tons in May, against 189,822 MT in April and 176,820 MT in May of 1979, the US Bureau of Mines said. Total US copper im­ ports during May were 3 7,225 MT, up from 32,273 MT the previous month and 14,412 MT in May 1979, the bureau said. It said actual con­ sumption of US copper in May fell to 152,800 MT, from 161,655 MT in April and 181,282 MT in May a year ago. Tuesday, August 26, 1980 Business Day Page 11 New Corporations Date of Registration, March 1-6, 1980 Name of Corporation, Officer, Address Line of Business Capitalization AGRICULTURE, FISHERY AND FORESTRY MAC INTERNATIONAL DEVELOPMENT COMPANY, INCORPORATED Macario Te 902 Producers Bank Bldg. 314 Nueva St., Binondo, Manila logging operations 5,000,000 a 1,250,000 s 1,250,000 p A.K. ALONTO DEVELOPMENT CORPORATION c/o Venancio Yaneza Marbella 1 Condominium Roxas Blvd., Manila logging operations 2,000,000 a 400,000 s 100,000 p KINGSLAND LIVESTOCK FARMS, INC. Jesus Maderazo 206 Balagtas St., Pasay, Metro Manila production of livestock & livestock products 5,000,000 a 1,000,000 s 250,000 p DAGOHOY FISHING AND AGRO DEVELOPMENT CORPORATION Lorenzo Sepe Rm. 306 PCI Bank Bldg. Sta. Cruz, Manila operation of fish farms 1,000,000 a 200,000 s 50,000 p SAN FERNANDO BAY DEVELOPMENT CORPORATION c/o Erlinda Sta. Ana Tiu San Fernando, La Union logging operations 2,000,000 a 400,000 s 100,000 p ROKIS INDO-AGRO DEVELOPMENT CORPORATION Santiago Manongdo 850 Manongdo St., Bo. Silahis SBPPI Vill., Don Mariano Marcos Ave. Quezon City, Metro Manila vegetable production in­ cluding roots and tuber crops 100,000 a 20,000 s 5,000 p CDC AGRO INDUSTRIAL CORPORATION Carmen Sackermann production of Montevedra, Hipona, Capiz livestock & live­ stock products 100,000 a 25,000 s 25,000 p CASMAN FARMS, INC. Tomasa Avena Angeles City livestock & live­ stock products 1,000,000 a 200,000 s 50,000 p ASIAN SWINE BREEDERS AND AGRICULTURAL RESEARCH CENTER, INC. Carlos Gatmaytan Bamban, Tarlac livestock & live- 20,000,000 a stock products 6,000,000 s 6,000,000 p TRANSPORTATION, STORAGE CARGO SAFEWAY, INC. c/o Samson Delgado - 10 Carissa St., San Manuela Subd. Las Pifias, Metro Manila water transport 3,000,000 a 600,000 s 150,000 p UNION CARGO CO., INC. Generoso Tanseco, Jr. Ekman Bldg., South Superhighway cor. Rockefeller St., Makati, Metro Manila air transport 1,500,000 a 300,000 s 300,000 p DALAHICAN ICE & COLD STORAGE CORPORATION Felipe Anastado Rm. 602, 1010 Bldg. A. Mablnl, Ermlta, Manila storage and warehousing 500,000 a 400,000 s 100,000 p NEGROS ALLIED VETERANS ARRASTRE AND STEVEDORING SERVICES, INCORPORATED water transport c/o Olimpio Dionson Pulupandan, Negros Occidental 50,000 a 12,500 s 3,125 p CONSTRUCTION F-G BUILDERS, INC. Joselito de la Fuente 62 Lantana, Cubao, Quezon City Metro Manila general building construction 1,000,000 a 200,000 s 50,000 p BTU CONSTRUCTION & DEVELOPMENT CORPORATION Tommy Ting Rm. 104 Arie Bldg., 139-141 Sta. Mesa Ext., San Juan, Metro Manila general engineering construction 10,000,000 a 2,000,000 s 500,000 p SERVICE8 ASIA PACIFICA PUBLICATIONS AND PRINTING CORPORATION Domingo Bardos Bangkal St., Amparo VIII, Quezon City, Metro Manila MECHANICO MOTOR SERVICE, INC. c/o Celso Dlonlslo Mallbay St., BF Resort VIII. Las PIHas, Metro Manila PATH FINDER BROKERAGE CORPORATION Benito Lalq Suite 504-A FNCB Bldg. Juan Luna, Blnondo, Metro Manila JZ MOTOR SHOP, INC. Vicente Zamora 1114 Antipolo St., Makati, Metro Manila prlntlng/publlshlng & alllad Industrial repair of motor vehicles and motorcycle! 200,000 a 40,000 i 10,000 p 250,000 a 100,000 s 100,000 p repair of motor vehicles and motorcycles UNITY PRINTING PHILIPPINES, INC. Benito Wong 122-124 Halcon St., Quezon City Metro Manila prlntlng/publlshlng 1,000,000 a & allied Industries 200,000 s 50,000 p a-Authorlzedi s-Subscrlbedi p-Paldup Source: Securities and Exchange Commission French ’80 inflation likely to reach 13% PARIS (Reuter) - French inflation in 1980 is likely to be around 13% compared with 11.8% in 1979, the prime minister’s office said. Its review of the French economy in the month of August fore­ casts a 1980 current ac­ count balance of pay­ ments deficit of 30 bil-lion francs compared with the 6.2 billion franc surplus in 1979. GDP GROWTH. The re­ view forecasts French 1980 gross domestic pro­ duct growth of 2.2% against a provisional 3.4% in 1979 and recent 1980 official forecasts of between 2.6 and 2.7% growth. M-2 money supply growth in 1980 is fore­ cast at 11%, unchanged from the official target and compared with a 14.4% growth in 1979. Previous most recent official forecasts put 1980 French inflation at around the 1979 level of 11.8%, and the 1980 cur­ rent account deficit at 25 billion francs. The review forecasts a 1980 trade deficit of 55 billion francs against the 13.3 billion shortfall of last year. ENERGY BILL. Ninetenths of the deteriora­ tion of the trade balance between first half of 1980 and first half 1979 was the result of the sharp increase in the energy bill, it added. Energy imports repre­ sent nearly 30% of France’s total import bill, and, the cost of oil has risen 156% in the last 18 months, the review noted. France’s oil bill is ex­ pected to increase by around 50 billion francs in 1978 over 1979, to 120 billion francs. Ibis is bound to in­ crease inflation but the government will continue its anti-inflation policies aimed at restraining mo­ netary growth and public expenditure, maintaining a stable franc and en­ couraging moderation in wage claims, it said. Declining UK interest rates seen LONDON (Reuter) - UK bank lending rates should continue to dec­ line into next year after reaching 13 to 14% by the end of 1980 against the current 16%, Barclays Bank Ltd. senior general manager Roy Vine told Reuters after an interim results press conference. He said rates should start coming down again as soon as distortions are removed from the UK M-3 money supply figures, but declined to estimate the extent of the cyclical drop. Vice-chairman Deryk Weyer added he is not so optimistic as some bank­ ers on the prospects for sustained lower rates. Weyer said a period of interest rate stability is hard to envisage, noting that upward pressures on short-term rates are being seen in both the UK and US. Bank borrowing is being kept high by com­ panies which are finding difficulty in destocking in current markets, he added. A myth collapses Swedish economy not invulnerable after all By MICHAEL METCALFE STOCKHOLM (Reuter) - Sweden’s apparent immunity from economic and political traumas seems to be wearing thin, after years of shielding the country from crises which have affected its neighbors. Its aloofness has led to a widely known myth called the Swedish model, but now this model is vul­ nerable to increasing, infectious economic tensions, and some Swedes argue that the socio-econo­ mic basis for the myth has col­ lapsed. CRISIS. World events have caught up with Sweden, prompting Prime Minister Thorbjoern Faelldin to remark recently the country is close to economic crisis and that some­ thing must be done. In an unprecedented move in the nations’s postwar political history, Faelldin’s center-right government has summoned a special session of the parliament, or Riksdag to deal with a new austerity package his government is preparing. The program aims to cut about seven billion crowns from the 1981/82 estimated budget deficit of about 65 billion crowns, keeping the deficit at 1980/81 levels. The cuts will rely on a higher value added tax and a slower pace of pub­ lic spending, with specific reduc­ tions in housing, medical and food subsidies and defense spending, in­ formed political sources said. The government, determined to rein in galloping consumer spend­ ing, has proposed increasing VAT by 1.9 percentage points to 1970, taking VAT charged on goods in the shop window to 23.46% from the present 20.63%. Swedish VAT currently accounts for well over a quarter of central government revenue. Every one per­ centage point increase in VAT is es­ timated by economists to yield close to 1.70 billion crowns in reve­ nue. New budget minister Rolf Wirten said recently private savings must also increase. He added that the planned public spending cuts must not spur unemployment before the expected recession begins to bite. The government’s belief that a crisis is near is shared by many poli­ ticians, bankers, economists, trade unionists and industrialists. But pre­ dictably, they differ over the best remedies for the short and long term. CHANGES. A number of bankers and industrialists said they favored long-term structural changes to the economy. Others, including many politicians, stressed the need for quicker, incisive solutions. Yet the inter-related symptoms they want to treat already have been diagnosed, first in other coun­ tries, now here. They include the effects of labor and management disputes, Inflation boosted by high energy costs and escalating budget, trade and current account deficits. The nationwide labor conflict earlier this year exploded the myth of employer-employe harmony re­ garded worldwide as unique and as a major contribution to the Swedish model. The oonfllct lamed Swedish industry for the best part of two weeks In early May and left more than half the country's workforce of four million on strike, locked out, or Idle. Economists said the settlement hammered out of the conflict Im­ paired Swedish international compe­ titiveness and reduced chances of curing the growth In its budgetary and current account deficits. INFLATION. The pressure of Imported Inflation on domestic prices has also Increased in succes­ sive months. Consumer price rises are now running at an annualized rate of around 13.5%,/ compared with under 13% earlier thia year. The sharp oil price Increases during 1979 put a big squeeze on the economy. The government esti­ mated net oil Imports this year to cost 27.5 billion crowns against 23 billion in 1979, while economists put the figure nearer 30 billion. Prior to the oil price increases the government’s economic policy had started to limit inflation. But officials said the hikes dashed hopes of achieving a full turnaround. The national budget for the fiscal year ending June 30, 1981 is officially estimated to show a defi­ cit of about 58 billion crowns, sharply up from the projected shortfall of 48.6 billion in 1979/80. DEFICIT. The Swedish trade account registered a deficit of 6.8 billion crowns in the first seven months of 1980, widening decisive­ ly from the 240-million crown shortfall in the same 1979 period. The government has now conceded the deficit will exceed its April forecast of a 7.06 billion deficit for all of 1980. Banking economists said the trade deficit is likely, to be nearer 10 billion crowns this year com­ pared with the final 4.31 billion de­ ficit for 1979. Compounding the problem is a huge gap in Sweden’s current ac­ count, which the government now estimates will widen to between 19 and 21 billion crowns this year, or 4% of gross national product. In 1979 it was 11 billion crowns or about 2.5% of GNP. To plug these gaps the govern­ ment is increasingly resorting to borrowing abroad. Its external debt, now put at 35 billion crowns, i$ soaring. Bankers estimate Sweden will have to borrow between 20 billion and 25 billion crowns abroad this year to help finance the swelling 1980 budget and current account shortfalls. The government has fore­ cast foreign borrowings of only 13 to 17 billion. The coalition government’s aus­ terity proposals to deal with these problems have come under fire from opposition Social Democrats and communists, as well as trade unionists, who argue they are un­ fair. The proposed VAT increase has prompted rumors of discontent from the main trade-union group­ ing, the LO, and from rank-and-file union members. They threaten to drive a tougher bargain in next year’s wage talks than in the pact secured in May. The employers’ federation has also been critical of an increase in VAT, fearing it will dampen consu­ mer spending and curb industrial production, which shows signs of falling in the second half after rela­ tively healthy growth in the first six months. Hans Werthen, managing direct­ or of AB Electrolux, sees the real economic problem as one of ba­ lance of payments, especially with a current account deficit nearing 20 billion crowns. "The traditional me­ dicine doesn’t help very much when you have deficits in the order of this magnitude," he said. He added productivity has been squeezed by Increasing public sec­ tor employment at the expense of the private sector. EXPORT DRIVE. Worthen urged a greater drive for exports and a low­ ering In Imports, especially Impor­ ted parts for exported products. But economist Leif Vlndevaag at Skandinavlska Enskilda Banken, Sweden’s largest commercial bank, said the country is unlikely to ex­ port Itself out of the problem In the short term. The country’s public deficit will direct government policy for most of the 1980s, while the trade and current account Imbalances will af­ fect policies for most of this cen­ tury, Vlndevaag said. He noted the public has not received the message the government's savings package is the first step on a long and difficult road of austerity. He said he favors concerted fis­ cal policies over the long term. "In­ tensive surgery with the aid of the fiscal scalpel is called for, not aspi­ rin.” Page 12 Business Day Tuesday, August 26, 1980 Trade Trends NOTICE Press releases used in this and other sections are not paid for. However, the editor reserves the right to edit all materials to conform with Business Day’s editorial standards. Publicity agencies and other contributors are asked to type their releases on stationery bearing the letterhead of their office. Others are advised to put their name, address, and telephone number. All press releases must be typed triple-spaced. Center for adult training in Baguio gets PBSP grant The Philippine Busi­ ness for Social Progress (PBSP) recently ex­ tended a P136.498 grant to the Catholic Vicar Apostolate of the Mountain Province to continue the operation of an adult training center in Baguio City. PBSP, a foundation created and supported by private businessmen to institute self-help community projects among the rural and urban poor, had been assisting the Baguio Diocesan Training Center for the past six years. Now in its terminal year of PBSP assistance, the Baguio Diocesan Training Center aims to continue to improve the living conditions of re­ sidents in selected areas through an integrated program of functional literacy, community education and man­ power skills training. The project bene­ ficiaries, some 600 com­ munity residents, belong to non-literate ethnic groups living within and at the outskirts of Baguio. The predominance of non-literate community residents belonging to the Igorot tribes prompted the establish­ ment of the .center in 1 9 7 3 to provide functional literary, com­ munity action and em­ ployment skills. This objective was viewed as a concerted effort of private development agencies for the develop­ ment of tribal Filipinos. The implementation of the program resulted in the formation of eight core groups cap­ able of organizing and implementing their own in come -generating activities. An on-going number of 168 enrollees in functional literacy classes in 13 areas en­ abled the students to manage their socio-econ­ omic projects with basic business skills. The success of the Diocesan Adult Training Center in implementing its programs in Baguio enables it now to ex­ pand to other areas of the Mountain Provinces. D. Bosco studes training at ITT Selected students of the Don Bosco Technical College in Mandaluyong are undergoing actual onthe-job training at the facilities of ITT Philip­ pines, this was learned from Fr. Francesco Pan­ filo, rector of Don Bosco Mandaluyong. Enrique M. Joaquin, ITT Philippines pres­ ident, announced that the company’s tieup .with Don Bosco is in line with its policy of col­ laborating with the Educational sector in the training of specialized technicians to fill the needs of the growing Philippine economy. Since February of last year, a total of 26 Don Bosco students have been trained by ITT Philip­ pines, of whom five are now employed with ITT Philippines. The trainees work eight hours a day with a daily allowance similar to that of a regular ITT Philippines employe. The training, a total of eight weeks for first and second year students and 20 weeks for third year students, is part of Don Bosco’s technical pro­ gram leading to a dip­ loma in Electronics Tech­ nology. DOMESTIC SUBSCRIPTION Coco trade ills aired The problems that beset the coconut in­ dustry are mainly due to three factors: fluctuations in production, erratic world conditions, and a multi-layered marketing structure which over­ burdens the small farmer. Hermenigildo Zayco, Board of Investments governor, said this during the monthly breakfast dialogue of the Bishops Businessmen’s Confer­ ence (BBC) at the Makati Sports Club. Zayco said it is dif­ ficult to forecast coconut production volumes be­ cause during a coconut tree’s development, its flowers or fruits are at the mercy of droughts, typhoons, earthquakes, and other calamities that may affect its growth. “This makes it impossi­ ble to ensure a steady supply of the product to the world markets,” he said. COCO OIL SUPPLY. He added that the world market supply of coco­ nut oil fluctuated from 1970 to 1979 between a minimum of 0.93 million tons and a maximum of I. 76 million tons. Thus, he said, a lot of substitu­ tion occurs. Zayco said that in the last 10 years, coconut oil’s share of total world export of oils and fats varied from a low of 6.9% in 1974 to a high of II. 4% in 1976. “These extremes in availability of coconut oil in the world market makes it difficult to de­ termine the basic de­ mand, because con­ sumption only equals supply,” he said. But Zayco said, the biggest headache of the country’s 500,000 coco­ nut farmers is the multi­ layered marketing struc­ ture composed of 10,000 barrio buyers and 4,500 municipal buyers — the middlemen in the busi­ ness. He said these buyers are usually financed by the dealers, traders, or exporters in the upper part of the market struc­ ture. There are also at least 25 copra dealers who aggregate copra into larger volumes for sale to exporters and processors. “One can imagine how depressed prices could be at the farm gates, especially for those farms located in isolated places, far away from the oil mills. These buyers are not only the outlet for the farm produce but also the source of fin­ ancing of the poor farm­ ers, who cannot turn to banks, not being able to provide the needed sec­ urity,” Zayco said. RATE:* METRO MANILA P200/ONE YEAR PROVINCIAL (BY MAIL) P2B5/ONE YEAR •WITH BD FILE ADD P55/YEAR FOREIGN RATES: N. AMERICA/ EUROPE MID. EAST 8630/ONE YEAR S. AMERICA, AFRICA S780/ONE YEAR ASIA, PACIFIC 8450/ONE YEAR SUBSCRIPTION COUPON 113 WEST AVENUE, QUEZON CITY TELS. 99-15-46 to 49, 99-05-44 99-98-53, 99-99-02 1 GENTLEMEN: DATE ' PLEASE ENTER MY SUBSCRIPTION TO "BUSINESS DAY" FOR ( ) ONE YEAR: I HAVE ENCLOSED THE CORRESPONDING , CHECK PAYMENT. I NAME/COMPANY (IN PRINT) ] DESIGNATION/PROFESSION I LINE OF BUSINESS [ NATIONALITY • ADDRESS/TELEPHONE J AUTHORIZED SIGNATURE NCR COMPUTERS FOR DYNETICS — Dynetics Incorporated, a leading local manufacturer of micro­ electronic circuits used in computers; recently ordered its third NCR computer from NCR Corporation (Philippines). The new computer, an NCR 1-8410 system, will be used for on-line work-in-process monitor­ ing and inventory control; yield analysis, and payroll applications. Dynetics is a BO I-registered firm employ­ ing more than 6,000 employes at its modern plant facilities at the FTI Complex in Taguig. Shown during the signing are (from left, seated): Gerardo B. Zapanta, manager, CI/MEG division, NCR; Jose T. Quimson, president, NCR; Byron Johnson, vice-president, Dynetics; and Arthur Barlaan, EDP manager, Dynetics. Standing, from left are NCR’s Ben Bello, district manager; and Eddie C. Laquindanum, account manager. Business Briefs McCann-Erickson ad seminar Twenty-three employes and some 35 key client personnel of McCann-Erickson (Phils), Inc. recently completed the first of its manpower development seminars in advertising. The seminar series have been designed by the agency’s worldwide headquarters in New York to provide the necessary materials and international expertise to properly train its people all over the world in the various skills in advertising. The first of these M.B.A. seminars discussed the principles of strategic planning and research in advertising and was hailed enthusiastically both by the agency’s local employes, as well as a large number of its major clients. All participants viewed it as a truly innovative and exciting training facility which demonstrates the agency’s commitment to the development of the advertising practice and its people. Topics covered by the first seminar on research were: Translating Information Into Strategy, Use of Research in Creative Development, Testing Advertising and Concepts and Present Research Techniques for New Business. Seminar candidates who successfully completed the course requirements will receive certificates from McCann International headquarters signed by no less than Willard C. Mackay, Jr., president and CEO of the worldwide advertising agency. McCann also disclosed that subsequent training seminars are being completed in New York for immediate release and these will be on media, creative, account management, production and financial administration. Atlas bares June output Andres Soriano, Jr., president and chairman of the board of Atlas Consolidated Mining and Develop­ ment Corporation, announced that the June, 1980 productions at Toledo and Masbate operations consisted of 42,394 WMT of copper concentrate and gold bullions containing 11,362,490 kilograms (25,050,000 lbs.) of copper, 436,382 grams (14,030 ozs.) of gold and 1,093,038 grams (35.142 ozs.) of silver. Pyrite producton was 8,301 DMT with a grade of 43.71% sulfur. Estimated gross value of the June,.1980 production is P248,970,000. This value was derived by using the average metal prices for the month of June, 1980. Seminars held on technical writing Communication Consultants, Inc. recently con­ ducted seminars on technical writing for the Phil­ ippine Long Distance Telephone Co. and the Lloyds Bank International — Manila. Seminar director was Dr. Casilda Luzares of De La Salle University who has had extensive training in the field of Englishfor-Special-Purposes in England and the US. Similar to an earlier seminar for the R & D division of San Miguel Corporation, the seminars were specially designed for each group, taking into consideration the writing needs of the participants. There were four phases to each seminar — needs analysis, .course and materials designing, the seminar-work­ shop, and finally, an evaluation of the individual participants in terms of their progress as well as areas which should be further strengthened to improve their writing competence. Research on ‘folk medicine’ The Marsman Foundation, through trustee Emilio G. Vito, is funding an in-depth research on the uses of medicinal plants otherwise known as “folk medicine.” The research is being conducted by professionals from the University of the Philip­ pines who have formed an integrated study group to work in the rural areas. According to the group, headed by Dr. Ernesta G. Quintana, Philippine forests teem with plants that could be developed as sources of raw materials for drug manufacture. This will reduce the country’s dependency on costly imported raw materials, Dr. Quintana noted. The KAPUNAN TOMAS YAP Appointments Ruperto R. Kapunan III joined the Bancom Group, Inc. (BGI) as vice-president for the civil engineering division where he holds the position of vice-president for operations. He was president and general manager of his own construction company and spent 11 years with D.M. Consunji, Inc., where he rose from the position of cadet engineer to that of operations manager, the position he held prior to his joining Bancom. After obtaining his B.S. degree in Ateneo, he enrolled at the University of the Philippines and graduated with a Bachelor of Science degree in Civil Engineering. He also completed his graduate studies in Business Administration at the Ateneo Graduate School of Business. Sanford J. Kornberg, president and general manager, McCann-Erickson (Philippines), Inc., has announced the appointment of Tessa H. Tomas as creative director, and Emily A. Abrera as deputy creative director. Ms. Tomas joined McCann in 1978 as an associate creative director and has been responsible for a wide range of its clients’ products. She is a graduate of the University of the Philippines with a degree of Broadcast Communications. Ms. Abrera joined McCann in 1978 as creativ group head and eventually became an associate creative director. She is also a graduate of the University of the Philippines with a degree in Mass Communications. Departure Lowell T. Yap, CPA-lawyer and manager of the tax department of Joaquin Cunanan & Co., left recently for Evanston, Illinois, USA. Yap will be away for about'two years. He will take up graduate • studies at Northwestern University having been awarded a James Nelson Raymond International fellowship by the said university for the school year 1980-81. Afterwards, he may be considered by Joaquin Cunanan & Co. for further training in taxation as an MIDP participant in any of the Price Waterhouse offices in the States. Yap passed the CPA board exams in 1972 and copped the second place in the bar exams given in November 1977. 1975 Central Bank statistical bulletin showed that the import value of medicine and pharma­ ceuticals reached $34.6 million. In 1976, imports reached $39.1 million New UST Graduate School program Managers, supervisors, guidance counsellors, school administrators in both the government and private sectors are given an opportunity to earn credits for graduate work in MBA, Psychology or related disciplines at the UST Graduate School thru attendance in the Supervisory-Managerial Assess­ ment Profile Seminar-Workshop which began August 23 at the University of Santo Tomas. Dr. Hal Hendrick and Dr. Butch de la Cruz, professors at the University of Southern California Graduate School of Safety and System Management, are the facilitators and main speakers of the workshop. Interested parties may contact the UST Graduate School for further information regarding the work­ shop thru tels. 26-69-35 or 21-00-81 loc.. 247. Tuesday, August 26, 1980 Business Day Page 13 W^eastern shipping lines Philippine flag carriers MANILA/KOBI SEMI E DIRECT SERVICE IONTAINER VESSEL VOY Closing CFS/CY MANILA CEBU KOBE E. SATURN 36 CN Aug 26/27 INPORT Aug. 30/31 Sept. 6/8 E. POLARIS 15 CN Sept. 3/4 Sept. 3/6 Sept. 7/9 Sept. 14/17 E. SATURN 37 CN Sept. 15/15 Sept. 14/16 Sept. 18/20 Sept. 26/28 E. POLARIS 16 CN Sept. 22/23 Sept. 22/25 Sept. 26/27 Oct. 2/3 MANILA YOKOHAMA EXPRESS SERVICE SEMI CONTAINER (ALSO CALLING NAGOYA, KOBE) VESSELS VOY Closing CFS/CY MANILA CEBU YOKOHAMA E. MARINER 51 N AUG. 25/25 PORT — Sept. 10 E. SATELLITE 53 N Sept 1/2 SEPT. 1/4 - Sept. 20 E. JUPITER 33 N SEPT. 8/9 SEPT. 8/11' SEPT. 12/13 Sept. 25 E. METEOR 34 N Sept. 19/20 Sept. 19/22 Sept. 23/24 Oct. 5 PHILIPPINE/JAPAN DIRECT SERVICE (YOKOHAMA, NAGOYA, KOBE) VESSELS VOY MANILA Other Ports Yokohama Other Ports ADVENTURE 47N Omits Sept. 1/10 Sept. 25/27 Sept. 29/30 E ORION 36N Sept. 8/1Q Sept. 12/16 Sept. 26/28 Sept. 30/2 SERPENS 95N - Sept. 6/13 - Sept. 20/25 E. CLIPPER 48N SEPT. 17/19 SEPT. 21/24 OCT. 10/12 OCT. 14/16 E. MARS 35N Sept. 26/28 SEPT. 30/4 oct; 14/16 OCT. 18/20 E. APOLLO 40 N Oct. 2/4 Oct. 6/10 Oct. 20/22 Oct. 24/26 MANILA HEAD OFFICE CEBU BRANCH CAG. DE ORO BRANCH Tel. 40-10-81 48-88-13 Tel. 7-49-59; 7-49-50 Tel. 41 34 For Booking & Freight Information pls. call Rene Velasquez or Maris Ortega ^^^^Member: Philippine Ship Agents Association) Fishers lift blockades at French ports PARIS (AFP) - Ship­ ping was moving normal­ ly at the giant Mediteranean port of Fos-surmer yesterday as the easing of the fishermen’s nationwide port block­ ade allowed shipping to move at several other harbors, including Le Havre and Caen in the north. Trawlermen at Cher­ bourg in West Francs also lifted their blockade at 10 a.m., but they would not allow car ferries for Britain to leave and they warned that they intended to reimpose their barrage at 6 p.m. However, shipping remained imprisoned at Dieppe. The lifting of the blockade at several smaller ports near Le Havre in northwest France continued, en­ abling yachtsmen to sail. At Fos in the Mediter­ ranean, oil tankers and iron ore carriers were maneuvering with the help of civilian tugs. SHIPPING AND TRADE ITF interdictions costing Filipino seafarers a lot The country is losing Pl,603,350 in foreign exchange and the berths of 90 Filipino seafarers yearly because of the interdictions by the In­ ternational Transport Workers Federation (ITF) on four ships crewed by seafarers re­ cruited by one manning “firm alone. “You can imagine the total losses being suffer­ ed by the country if we add up the results of ITF interdictions on the entire manning compo­ nent of the Philippine Chamber of Maritime Industry,” said a ship­ ping executive who met 11 returning Filipino sea­ farers last weekend. The repatriated sea­ farers were part of the crew of m/v Madang who were dismissed after the shipowners were forced to pay through the ITF local $132,529 (or roughly,P993,967.50). The other crew members, all Chinese nationals under Capt. T. S. Sung, did not partici­ pate in the interdiction, thus prompting the ship­ owners to replace all Fili­ pino crew members with Chinese nationals. When the repatriated Filipino seafarers arrived in Manila, they found that losers in this action included, not only their own country, the man­ ning industry, the man­ ning firm, but also them­ selves and their families particularly. Here are the reasons why: The seamen signed payrolls amounting to $ 13 2,529 which Jerry McGrow, the local ITF official used as basis to collect from the ship­ owners. Of this amount he distributed to the crew only $39,758.70 representing 30% of the total amount in the pay­ roll, stating that under standard operating proce­ dure of the Philippine government, the seaferers’ families back home are entitled to re­ ceive the remaining 70% through banks in Manila. However, when the repatriated seafarers arrived in Manila, they found their wives did not receive any telegraphic EAC LINES-CANADA/USA TEL 58 38 44, EXPORT FEEDER SAILS PORTS OF CALL SIENA V-034 P. ABOITIZ V-20 AUG. 28 VANCOUVER B.C. SEATTLE TACOMA LONGVIEW PORTLAND XIJIANG V-23 Aug. 29 NEW PONY V-05 AUG. 30 LOS ANGELES AND IMPORT FEEDER ARRIVAL OTHER AREAS VIA SAMOA V-031 N£W PONY V-07 SEPT. 19 OR MLB TORONTO & MONTREAL SARGODHA V-033 NEW PONY V-10 OCT 3 transfer or any inform­ ation that some amount was due them. Meanwhile, the sea­ men learned that they have lost their jobs aboard the vessels. They learned, too, that they have been blacklisted by other shipowners — for­ eign and domestic. The manning firm which recruited the sea­ farers was told by the shipowners that a sister ship, m/v Silviculture, might just as well be crewed by a full Chinese crew because “Chinese seafarers were apparently more true to their con­ tract since they refused to join the Filipino crew in initiating an ITF inter­ diction.” A cargo vessel having a capacity of 16,115 tons, Silviculture has an 11-man Filipino crew whose monthly payroll runs up to $2,200 (or annually P198.000). The sad part of this was that Silviculture’s Filipino crew did not know the series of events which transpired aboard their 20,548.38-ton sister ship, m/v Madang. Manning industry cir­ cles said the number of vessels crewed by sea­ farers recruited by this particular manning firm which were interdicted by the ITF now total four. “Nevertheless” this source confided, “the firm has lost seven sister­ ships altogether through EVERETT LINES 31 EVERETT STEAMSHIP CORPORATION to39 AGENTS 290 Atlanta St. Port Area, Manila AUSTRALIA-WEST PACIFIC LINE FULL CONTAINER SERVICES LOADING FOR ALL AUSTRALIAN MAIN PORTS COMBO/JUMBO SERVICE VESSEL BRISBANE SYDNEY|MELBOURNE FREMANTLE MANILA NAGARA M. MONSOON TAMARA NAGARA Via Sydney Sept. 13/14 Oct. 13/14 Nov. 13/14 Sailed Sept. 15/17 Oct. 15/17 Nov. 15-17 AUG. 23/25 Sept. 19/20 Oct. 18/20 Nov. 18/20 AUG. 28/30 Sept. 26/27 Oct. 26/27 Nov. 26/27 Sept. 12/13 Oct. 9/10 Nov. 9/10 Dec. 9/10 VESSEL Sydney Mel­ bourne Ade­ laide Burnle Slnga- P. Kelang Penang Manila ADVARA ANDROS Sailed Aug. 21/25 Sailed Sailed Sailed Sailed Sailed Sailed Sailed Sept. 10/10 Sailed Sept. >11/14 SEPT. 12/13 Oct. 3/4 PHIL/AUSTRALIA E>[PRESS SEE(VICE VESSEL Manila Taiwan Hongkong Sydney Melbourne Burnle Adelaide ADVARA ANDROS SEPT. 12/13 Oct. 3/4 Salls direct to Sydney Salls direct to Sydney Sept. 24/26 Oct. 16/20 SEPT. 2 7/29 Oct. 22/24 SEPT. 30/31 Oct. 25/26 Oct. 1-2 Oct. 28/29 ** Brisbane cargo acceptable to Sydney EVERETT ORIENT LINE WEEKLY EXPRESS SERVICE CONTAINER/BREAKBUI^K/REEFER ROSS EVERETT VOY. 26 LEONOR EVERETT VOY. 27 BRAD EVERETT VOY. 27 FERNANDO EVERETT VOY. 13 YOKOHAMA Sailed Sailed Sailed Aug. 27 NAGOYA Sailed Sailed Sailed Aug. 30 KOBE Sailed Sailed Aug. 24 Aug. 31 MOJI Omit Salted Aug. 28 Sept 3 MANILA Sailed Aug. 27 Sept. 2 Sept 9 CEBU Sailed Aug. 29 Sept. 5 Sept 12 DAVAO Aug. 25 Sept. 1 Sept. 9 Sept 15 YOKOHAMA Sept. 3 Sept. 10 Sept. 17 Sept 24 LEONOREVERETT VOY-27 ARRIVING MANILA WEDNESDAY AUG. 27 FCL CLOSING TIME 1600 AUG. 28 the simple expedient of the shipowners deciding to change their crews in favor of some other nationality allegedly more reliable and more true to their contract.” Because of the alarm­ ing trend to replace Fili­ pino seafarers for some other nationality, the manning component of the PCMI is asking the government for imme­ diate assistance “before the entire manning.indus­ try is wiped out by foreign interdiction.” The repatriated Fili­ pino seafarers from m/v Madang were identified as Botswain’s Mate Rodrigo Seloveres, Car­ penter’s Mate Gregorio Malimban, Able-bodied Seaman (A/B) Norberto Oliver, A/B Ignacio Lagrama, A/B Nolasco Manapsal, A/B Ricardo Belmonte, Oiler First Class Nelson Ricarte, Oiler Edgar Bruselas, Oiler Juanito Mindo, Oiler Pedro Orosco, Wiper Ricardo Absullo, and Cook Rodolfo Palileo. — National Media Production Center SHOWA LINE FULL CONTAINER SERVICE New weekly direct sailings to: ^k TAGBILARAN Then Ozamiz, Higan, Ozamiz, Dumaguete, Manila FRIDAY 10 A.M. MV MISAMIS OCCIDENTAL - The ManilaTagbilaran route k SAN JOSE (MANGARIN) PUERTO ■F PRINCESA THEN > CORON WEDNESDAY 11 A.M. MV ELIZABETH WILLIAM LINES, INC. | THE DOMESTIC CONTAINER SHIP­ PING FIRM OF THE YEAR. I We Leodi MANILAZAMBOANGA FULL CONTAINER SERVICE WILLIAM LINES CONTAINER SHIPPING COMPANY OF THE YEAR AWARDEE Philippine Ports Authority Pier 14 North Harbor Tels. 20-7169, 21-1393. 21-9821 to 28 129 San Fernando, Binondo Tels. 40-5424, 48-3393,40-5654. 40-5583 I -J ATTENTION VESSEL Ma Closes Mia Saks Tokyo Kobe Relay Vessel At Tokyo or Kobe LA OAK/ SF SEA TTLE Dynamics 9/1 9/3 9/11 Hakusan M.aru V-87 9/24 9/25 Ace V-69 9/13 Hlkawa Maru V-77 9/21 Eastern Polaris V-15 CN 9/4 9/6 9/14 REFER CARGO ONLY Electro 9/11 9/13 9/21 9/23 Ace V-48 Hotaka V-19 10/4• U.S. GULF (MLB) CANADA "Accepting ■ FAR EAST • U.S. ATLANTIC (MLB) I • U.S. PACIFIC San Diego, Oakland, Longview, Portland 20 ft. & 40 containers available for cargoes destined for Japan & U.S. West Coast Ports Philippine ocean lines sine. GENERAL AGENTS 268 Atlanta St. Corner 12th St., Port Area, Manila Tel. Nos. 40-10-81 to 98 Loc. 280-285 • Cable Address: 2POLJSHIP*J 47-70-87 Member: Phil. Ship Agents Assn. . No. 6-1 3-22/7-49-50 Business Day Tuesday, August 26, 1980 PORTA, PUEO Y CIA., INC. 1354 PEREZ ST., PACO, MANILA CHEF CELESTE holds court over a feast of Italian cuisine at the Century Park-Sheraton's lobby outlet. Cafe' in the Park. The chef is on his annual summer vacation from his family-owned Ristorante La Falconera in Traviso, Italy, and is in town on his first food promotion in the Philippines. Playboy Club of Manila, in cooperation with Delta Motor Corp., presents exclusively for Playboy Club Members and their Guests... • 25th Anniversary Playmate - Candy Loving • Playboy’s April Playmate - Lisa Sohm • Bayanihan Dance Co. • Danny Cruz and the 747 with Ella del Rosario • Emcee - Eddie Mercado Come, revel with us on our 2nd anniversaryl Bubble with delicious exhilaration as the Playmates USA present themselves live In the most sizzling show this side of the Bay!. Rendezvous with the 1980 Miss Young International and her newly-appointed Court of Beauties. And Say cheers for the Bunny of the Month for August. Come, have yourself one unforgettable evening. Applaud our Anniversaryl August 26, 9:45 at the Playboy Club Living Room No cover charge for Members; F50.00 for guest of Member. Playboy Club .of Manila For the man who has everything else. 1990 Roxaa Blvd., Metro Manila Tel. No. 57-38-11 Owned and operated by Sllahla International Hotel to Group of li Restaurants Your Playboy Key la honored In Playboy Clubs, Hotels and Casinos worldwide. £ O 3! BON APPETIT A master chef comes to Manila (veni, vidi, vici) Chef Celeste Tonon doesn’t speak a word of English; but then, food is an international lang­ uage. And in that me­ dium, Chef Celeste is among the most fluent in the world. The master chef is at the center of, a minor epicurean festival now ongoing at the Century Park-Sheraton Hotel, apt­ ly called “Italian Extra­ vaganza.” Local Italian cuisine buffs who have run through the gamut of pizza, ravioli and lasagna (not to mention spaghet­ ti and all its kindred forms) will find a whole new world opened up to their palate with such gastronomic adventures as Melanzane Al Fung­ hetto (eggplant and mushroom salad); Zuppa dell’ Adriatico (seafood soup); Brasato.di Manzo al Barola (braised beef in red wine sauce); Carre di Maiale alia Parmiggiana (roast porkloin with cheese sauce); and Zabalone alia Veneziano (Sabayon Venetian style). This veritable feast can be had in a daily luncheon at the hotel’s Cafe in the Park until Sept. 4, and at luncheon shows starting today at the Sheraton ballroom which feature, as part of the Italian theme, the fashion collection of Italy’s foremost designer Brioni. Chef Celeste, accord­ ing to the Sheraton’s Charisse Garcia, is in Manila on a “working holiday,” and in the course of an annual vaca­ tion he regularly takes from his family-owned Ristorante La Falconera “da Celeste” in Veneguzzu, Traviso. The restau­ rant is a former ducal manor whose rooms have been transformed by Ce­ leste and his family (mother, brother, sister and wife) into separate dining rooms with a cavernous kitchen at the center. Its upper floor was converted into a large banquet room; and, in an area once used for game hunting, an inter­ esting variety of mush­ rooms now grows which Chef Celeste uses in his various recipes. The manor-turned-ristorante is closed every summer; and this year, Chef Celes­ te — who is only 30 — decided to pay a working visit to Manila for his first foot promotion in the country. As Century Park officials aptly put it, his Italian patrons’ loss is most definitely Manila’s gastronomic gain. MERIENDA AT THE CLIPPER - The Manila Mandarln'i Clippar Lounge features a menu of Filipino merlenda Itemi from 3 to 6 p.m. Traditional dishes like Dinuguan at Puto, Lumplang Ubod, Sotanghon Gulsado and Arroz Caldo, and delicacies like Palltaw na may llnga, Gulnataang Halo-Halo, Maruyang Saglng and Buco Salad will be served. Filipino cuisine Is rich In variety and color, tempting both tastebuds and the eye, and The Mandarin has coma up with a whole separate menu to reflect the tasty dishes that take pride of place In fiestas and parties. Tuesday, August 26, 1980 Page 15 HOTEL HAPPENINGS The Resort Hotels Corp.’s Taal Vista Lodge offers a daily luncheon feast, “Fiesta sa Taal,” at the lodge’s Vista Hall. On Sundays, a dance troupe called the Sanghiyang'Group performs a lively "fire dance” — in bare feet over flaming coals. “The Fabulous Hollywood Swinging Hot Dance Revue” performs lunchtime at the Manila Garden. This seven-member revue from the United States features a provocative belly dance, as well as spectacular full-costume numbers. The Tihej AtThe HILTON Ongoing at the Braukeller German-cellar restaurant of the Holiday Inn Manila is a lunchtime fashion show, featuring Goulee Gorospe’s "All-Star Fashion Collection.” The show is on until Sept. 12. Silahis International Playboy Club celebrates its second anniversary today. In town to grace the occasion are Candy Loving, Playboy's 25th anniversary playmate, and Liza Sohm, Playmate of the month for April. Gregg Centeno's haute couture collection is featured in a daily luncheon show at the Hyatt Re­ gency's La Concha. On Friday, two roundtrip tickets to Singapore courtesy of Philippine Air­ lines will be raffled off to luck patrons. MYRA’S 6 CO. SPORTING GOODS \&/ We help people play their way to health and fun. ^?XPJ®kross Your times. Daily from 10 a.m. to midnight. Greenbelt Park, Makati Ave., Tel. 86-51-79 Wienerwaldw THE WORLD'S JUICIEST CHICKEN WIE 21 EXCITING. These are your times at the Hilton. Pulsat­ ing with the beat of cosmopolitan Manila. For Hilton is in the heart of it all. ENTERTAINING. Be enthralled by the finest music and performing arts. Rendered exclusively for you by the best local and international artists. LUXURIOUS. Simply beyond the excellent amenities of modern living, Hilton gives you the mag­ nificent experience of gourmet food and impeccable service fit only for discriminat­ ing guests. A stay at the Hilton is a toast to bon vivant. FESTIVE. Daily shows and programs presented by Karilagan International, Manila's best cultural troupe. Captivating the delightful spirit of the fun-loving Filipinos. And of course, UNFORGETTABLE. Be­ cause of the Hilton brand of hospitality. Warm, sincere, personal and spontaneous. Allow us to touch your life. And rediscover living. These are the times at the Hilton. When The je Time j Are Now, In Tihe To Cohe To The HILTON Page 16 Business Dey Tuesday, August 26, 1980 The Stock Market C-Is, oils post higher peso turnovers in lively trading increment. Interport surprised the market with a 24% price appreciation, although the issue was not actively traded. Analysts said that the oil sector appears to be gaining momentum, although the events in the drillsites show no major up­ trend is fundamentally possible. They added that buyers yesterday may be banking on future drillings. C-Is garnered P2.93 million worth, more than double Friday’s Pl.13 million. PDCP again crossed 50,500 shares at P22.20 per or around Pl.12 million. Gainers outnumbered losers, 27 to 11, while 20 issues closed unchanged. Among the top gainers together with Interport were Consolidated with a 6% increment, Lepanto B with 5.66%, and Atlas B with 3.37%. Losers together with Baguio Gold were Podco and San Jose Oil, each down by 5.7%, and China Banking and Marinduque B both by 4.76%. Combined peso turnovers amounted to P10.48 million on a volume of 320.74 million shares, against Friday’s P7.83 million on a volume of. 132.13 million shares. The market rallied anew yesterday with share prices posting a strong opening and firming up at midsession, but weakened several minutes before bell time. Analysts said that such price behavior is usually the offshoot of a technical rebound, since sellers wait for peak prices before giving in to bids. They noted that no con­ crete factors have yet surfaced to perk up the market, while negative factors such as the proposed imposition of the capital gains tax and the increase in ad valorem taxes for minerals have, in fact, discouraged investors. Trading turned a bit livelier as the com­ mercial-industrial and oil sectors recorded higher peso turnovers than Friday’s trans­ actions. The improved volume in these sectors brought the combined peso turnovers of the exchanges up by 34%, while the number of shares traded increased by more than 100%. Still, analysts could not see any fund­ amental factor at present indicating that a major turnaround is in the offing. They said that the price of metals abroad corrected last Friday, although the local mining issues yesterday continued to advance. They believe that yesterday’s movement of mining issues was a carryover of last week’s strength. Mines soared during the first half of the session after opening considerably higher than Friday’s closing, but the issues gave up points later. The favorite Atlas, for example, opened at P21.20 in Makati and moved up to P21.50, but it closed lower than the opening price at P21.10. Selected mines managed to close higher than Friday’s level. The A and B shares of Atlas, Consolidated, Lepanto, and Philex all went up. Baguio Gold, however, dropped by 20% and Marinduque B by 4.76%. Transactions in the mining sector amounted to P4.34 million, 13% less than the previous P4.97 million. Oils traded P3.2 million worth from Pl.72 million, or an 86% MANILA STOCK EXCHANGE QUOTATIONS Monday, August 25,1980 COMMERCIAL A INDUSTRIAL BOARD STOC KS MAKATI STOCK EXCHANGE, INC. QUOTATIONS Monday, August 25,1980 Bacnotan 24.50 . CDCP 5.05 EEI 1.53 First Holdings 8.90 First Holdings “B” 9.00 Globe-Mackay 10.50 Goodrich 12.00 STF, Micro 4.00 ANSCOR 1.30 Ayala Corp. 1.30 SMC 24.50 SMC “B" 25.00 PLDT Com. 41.50 PLDT 10% ‘‘D” 10.40 26.00 5,50 1.55 9.00 12.50 4.10 1.31 1.33 25.00 25.25 41.75 1.53 9.00 10.70 1.54 9.00 10.70 1.53 9.00 10.70 10.70 1.30 1.30 25.25 25.25 41.50 10.50 25.25 25.25 41.75 10.50 25.00 25.25 41.50 10.50 1.30 25.00 25.25 41.75 BID ASKED OPEN HIGH LOW CLOSE VOLUME SUGARS Bogo-Medellln Cariota 23.00 COMMERCIAL A INDUSTRIAL BOARD China Bank Bacnotan Cons. Ayala Corp. First Holdings *< FMF Dev. ANSCOR xc CDCP PLDT PLDT 10% S-F > PLDT 10%S-G EEI SMC "B" 200.00 210.00 25.00 26.00 1.28 1.30 8.95 — 1.28 1.30 4.50 5.50 41.50 41.75 9.00 - 8.60 8.70 1.50 1.52 25.00 25.50 25.00 26.00 8.90 3.20 8.90 8.90 3.20 3.20 9.05 9.05 8.65 8.65 1.52 1.52 25.50 25.50 8.90 3.20 700 1,500 19,000 20,400 15,000 17,100 9,600 250 100 9.05 9.05 8.6,5 8.65 1.52 1.52 25.00 25.00 500 900 30,250 BIG BOARD Atlas Atlas “B” Baguio Gold Benguet Corp. "B" Benguet Corp. "P" Cons. Mines Island Lepanto Lepanto “B" Marinduque Marinduque “B" Philex Philex ''B*' Mlnolco 21.00 21.20 38.00 38.25 .0042 .005 86.00 92.00 18.00 19.50 .0068 .007 .0098 .0105 .13 — .135 .1375 3.80 — 10.00 10.50 .1425 .145 .15 — .0013 .0014 38.50 21.50 38.50 21.10 38.25 21.10 38.25 47,200 3,300 BIG BOARD Atlas Atlas "B” Baguio Gold Baguio Gold “B" Benguet "B” Benguet Pref. Cons. Mines Cons. Mines “B" Lepanto Lepanto “B" Marcopper Marlnquque "B" Philex Philex “B” Mlnolco SMALL BOARD SMALL BOARD Apex Basic Basic "B" Hercules Interport Interport "B” Landoil Manila Marsteel Oriental Richfield Richfield “B" PODCO Phil. Overseas POGEI Sabena Seafront “B" Tran s-Asia Vulcan .021 .0076 .0125 .0135 .0086 .02 .037 .025 .026 .0058 .029 .008 .0088 .013 .0135 .0205 .021 .0215 .0084 .013 .009 .022 .038 .027 .006 .03 .005 .0088 .0092 .014 .0145 SHARES Comm'l & Ind'l Mining Oil GRAND TOTAL 10,088,350 66,777,000 194,330,000 271,195,350 ODD LOT .0066 .13 .1375 3.80 .15 0013 .02 .021 .0215 .0115 .0125 .0068 .1325 .1375 3.80 .1425 .15 .0013 .0066 .13 .0068 .1325 .1375 3.80 .0013 1,000,000 2,050,000 20,000 6,500 795,000 5,000 5,000,000 .02 .02 .021 .021 .0215 .0215 .013 .0115 .014 .0125 .006 .006 .006 .038 .039 .037 .025 .026 .025 .026 .027 .026 .006 .006 .006 .031 .031 .03 .005 .005 .005 VALUE Pl ,974,107.50 2,862,547.50 2,71^,585.00 P7,548,240.00 ...............P 5,715.95 .02 50,300,000 .021 4,100,000 .0215 200,000 .013 34,850,000 .014 49,100,000 006 10,000,000 038 15,580,000 026 4,700,000 027 1,850,000 03 2'000'000 005 74,000,000 Apex “B” Basic B. Buhay Hlxbar Interport Landoil LRM Mia. Mining Marsteel Oriental Oriental “B" POGEI Phil. Overseas Phil. Overseas “B” PODCO PODCO “B" Seafront Seafront “B” South Seas Surigao Surigao "B” T rans-Asla Comm’l A Ind’l Mining Oil GRAND TOTAL AVERAGES Comm'l & Ind'l Mining COMPOSITE 40.1357 ♦ .3708 67.8179 — 1.5972 .014135 ♦ .000198 36.0747 —.2650 NOTE: Due to space limitations, certain untraded stocks ore usually deleted from the published lists. SECONDARY BOND MARKET QUOTATIONS August 26, 1980 lssuer_ Amount Maturity Coupon Rate Bid Of_fer_ Yield BF Homes P125M 9-29-85 15 75 85 19.75 PICOP P150M 12-22-87 16 75 85 19.95 Source: Bancom Development Corporation 21.10 21.20 38.00 38.25 .0044 .0052 - .0056 23.00 . 29.00 88.00 92.00 18.00 19.20 .0068 .007 .007 .0072 .1325 .135 .1375 .14 3.00 3.20 10.00 10.50 .1425 .145 .1525 .155 .0012 .0013 .02 .0205 .02 .0205 .021 .0215 .006 .007 .001 .0012 .0125 .013 .0088 .009 .001 .0011 .0205 .0215 .0056 .0058 .037 .038 .056 .06 .0044 .005 .03 .031 .047 .051 .006 .0062 .006 .0066 .0027 .003 .008 .0088 .0086 .0092 .0096 .0094 - .0066 .0045 .005 .015 .016 .016 .0205 .0135 .0145 .013 .0145 SHARES 82.4 tf) 28,153,450 21,310,000 49,545,860 21.20 38.50 21.50 38.75 21.20 38.25 21.20 38.25 11,600 9,550 .0056 .0056 .0056 .0056 400,000 .0068 .007 .13 .135 .007 .007 .135 .14 10.00 .1375 .15 .0013 .0068 .007 .13 .135 10.00 .1375 .15 .0013 .007 3,100,000 .007 14,400,000 .1325 805,000 .14 2,105,000 10.00 2,300 .1425 1,335,000 .1525 485,000 .0013 2,100,000 .02 .02 .02 .021 .021 .02 2,500,000 .021 2,150,000 .012 .013 .012 .009 .009 .0088 .013 1,850,000 .0088 500,000 .038 .038 .038 5,490,000 .03 .03 .03 .006 .006 .006 .0066 .0066 .0066 .0066 .0066 .0066 .015 .015 .015 .0135 .014 .0135 VALUE P 958,110.00 1,476,820.00 499,130.00 P2,934,060.00 .03 5,560,000 .Q06 1,400,000 .0066 2,000,000 .0066 500,000 .015 2,000,000 .0135 2,850,000 AVERAGES Comm'l A Ind'l Mining Oil 108.95 2,103.24 2.425 PHILIPPINE STOCKS ABROAD In New York (August 22,1980) Atlas Benguet ICD Marinduque PLOT (Common) Open 5-1/8 12-1/4 1-1/2 5-3/4 High 5-1/2 12-3/8 1-1/2 5-3/4 Low, 5 11-3/4 1-7/16 5-3/4 Close 5-1/2 11-7/8 1-1/2 5-3/4 Change_ up 3/8 down 3/8 down 1/8 Volume, Bid_ Asked, 38,700 5 5-1/4 78,600 11-7/8 12 42,300 1-7/16 1-1/2 700 5-3/4 5-7/8 In Hong Kong (August 22,1980: in Hong Kong cents) Philex Baguio Gold Hijh Low Close 14.50 14.50 14.50 no trade — — Prev. Close 14.50 0.70 20,000