<!DOCTYPE lewis SYSTEM "lewis.dtd">
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20596" NEWID="20001">
<DATE>19-OCT-1987 23:49:31.45</DATE>
<TOPICS><D>money-fx</D></TOPICS>
<PLACES><D>japan</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0001&#31;reute
u f BC-IF-DOLLAR-FOLLOWS-WAL   10-19 0105</UNKNOWN>
<TEXT>&#2;
<TITLE>IF DOLLAR FOLLOWS WALL STREET JAPANESE WILL DIVEST</TITLE>
<AUTHOR>    By Yoshiko Mori</AUTHOR>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>If the dollar goes the way of Wall Street,
Japanese will finally move out of dollar investments in a
serious way, Japan investment managers say.
    The Japanese, the dominant foreign investors in U.S. Dollar
securities, have already sold U.S. Equities.
    But "if the dollar falls steeply, which did not happen
yesterday, Japanese investors will definitely try to withdraw
significant funds from U.S. Shares," said Akira Kawakami, deputy
manager of Nomura Investment Trust and Management Co Ltd's
international investment department.
    An unstable, lower dollar would also affect Japanese
investment in U.S. Bonds. "Japan-U.S. Interest rate
differentials, which currently look wide enough, mean nothing
in the absence of dollar stability," said Kawakami.
    U.S. Bonds could benefit due to a gloomy economic picture
following the estimated huge losses in stocks by major U.S.
Institutional and individual investors, he said. The effect
should be to rule out any U.S. Interest rate rise.
    But most Japanese investors in U.S. Bonds are still wiating
to see if the dollar really is stable, he said. The dollar was
holding firm at above 142 yen on Tuesday morning.
    "Although Japanese investors sold huge amounts of stocks in
New York yesterday, most are still looking for chances to
lighten their U.S. Stock inventories," Hiromitsu Sunada, manager
of Meiji Mutual Life Insurance Co's international investment
department said.
    Their sales helped send Wall Street stocks down 508 points
to 1,738, the market's biggest percentage drop since 1914.
    "Investment in U.S. Stocks and bonds is difficult,
considering the dangers," said Katsuhiko Okiyama, deputy general
manager and chief adviser of Yamaichi Securities Co Ltd's fixed
income securities marketing group.
    Japanese investment at home could start to pick up once
markets have stopped reacting to Wall Street, the managers
said. The Tokyo yen bond market is likely to stabilise in one
or two weeks, which is what investors have been waiting for.
The bottom for yen bonds should be around a 6.3 pct yield for
the 5.1 pct 89th bond, they said.
    "The basic background which has supported the stocks and
bonds markets has not changed," said Norio Okutsu, assistant
general manager of Nikko Securities' bond department. "But new
outflows of funds to the U.S. Will be decreasing."  However,
this was already evident three months ago, he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20597" NEWID="20002">
<DATE>19-OCT-1987 23:58:39.11</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D><D>france</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0012&#31;reute
u f BC-NEC-TO-SUPPLY-CHIP-TE   10-19 0085</UNKNOWN>
<TEXT>&#2;
<TITLE>NEC TO SUPPLY CHIP TECHNOLOGY TO FRANCE</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>NEC Corp &lt;NIPN.T> will supply &lt;Matra-Harris
Semiconducteurs SA(A)> (MHS) of France with manufacturing
technology for 16-bit microchips used in microcomputers, an NEC
spokesman said.
    MHS, a joint venture between France's MATRA &lt;MATR.PA> and
Harris Corp &lt;HRS> of the U.S., Will manufacture and market
globally a microcomputer based on NEC's Micron PD 78312 and
Micron PD78310 chips.
    MHS will pay NEC an undisclosed sum for the technology.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20598" NEWID="20003">
<DATE>19-OCT-1987 23:59:09.79</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0013&#31;reute
b f BC-JAPAN-TAKES-WAIT-AND-   10-19 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN TAKES WAIT-AND-SEE STANCE ON STOCKS-OFFICIAL</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>The Finance Ministry will take a
wait-and-see stance on Tokyo Stock Exchange movement, although
it is gravely concerned about the sharp fall in stock prices, a
senior Ministry official said.
    The official, who declined to be identified, told reporters
the 7.3 pct drop in Tokyo stock prices this morning was caused
primarily by psychological factors following the 22.5 pct fall
in New York stock prices overnight.
    He said the Ministry is in close contact with the Tokyo
Stock Exchange, but has no plans yet to take any specific
measures regarding the fall.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20599" NEWID="20004">
<DATE>20-OCT-1987 00:08:10.16</DATE>
<TOPICS></TOPICS>
<PLACES><D>mexico</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0017&#31;reute
u f BC-MEXICAN-STOCKMARKET-H   10-20 0112</UNKNOWN>
<TEXT>&#2;
<TITLE>MEXICAN STOCKMARKET HEAD SEES NO CRISIS AFTER FALL</TITLE>
<DATELINE>    MEXICO CITY, Oct 19 - </DATELINE><BODY>The outlook for Mexico's economy and
stockmarket remains optimistic despite the market's worst-ever
fall of 52,671.56 points on Monday, the president of the
Mexican stock exchange, Manuel Somoza, said.
    He said the 16.51 pct drop in the exchange's index
reflected a "totally emotional" reaction to Monday's fall on the
New York stock exchange and was not a reflection of a new
crisis for the Mexican economy or the stockmarket."
    He was speaking at a news conference here on Monday.
    "We think that after the psycological effect the market will
tend to stabilize itself," Somoza said.
    Somoza said he based his optimism on the relatively bright
outlook of the Mexican economy due to increased income from oil
and non-petroleum exports, record high foreign reserves and
government efforts to promote a modernization of the industrial
sector.
    "The U.S. Economy is not the same as the Mexican," he said.
He did not say when he thought the market would stabilize.
    He said traders had originally expected the market to level
out on Monday after last week's profit taking pulled the index
down 44,207 points. 
    News of the "enormous problems" in New York, which reached
Mexico City before the local market opened, caused a flurry of
selling on the Mexican exchange, Somoza said.
    The stockmarket had risen 629 pct over the year by the end
of September.
    Somoza said Monday's light volume of 15.3 mln shares
compared to an average of 53 mln was an indication the day's
drop was not a sign of a major collapse.
    He also denied rumours that the day's loss was the result
of government and brokerage house manipulation.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20600" NEWID="20005">
<DATE>20-OCT-1987 00:15:04.00</DATE>
<TOPICS><D>cocoa</D></TOPICS>
<PLACES><D>indonesia</D><D>uk</D><D>malaysia</D><D>usa</D><D>papua-new-guinea</D><D>west-germany</D><D>netherlands</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;T 
&#22;&#22;&#1;f0021&#31;reute
u f BC-ASIAN-COCOA-PRODUCERS   10-20 0097</UNKNOWN>
<TEXT>&#2;
<TITLE>ASIAN COCOA PRODUCERS EXPAND DESPITE CRITICS</TITLE>
<AUTHOR>    By Jeremy Clift</AUTHOR>
<DATELINE>    JAKARTA, Oct 20 - </DATELINE><BODY>Asian cocoa producers are expanding
output despite depressed world prices and they dismiss
suggestions in the London market that their cocoa is inferior.
    "Leading cocoa producers are trying to protect their market
from our product," said a spokesman for Indonesia's directorate
general of plantations. "We're happy about our long-term future."
    Malaysian growers said they would try to expand sales in
Asia and the United States if Malaysian cocoa was not suitable
for European tastes.
    They were responding to comments by London traders that
large tonnages of unwanted cocoa beans from Malaysia, Indonesia
and Papua New Guinea (PNG) were helping to depress cocoa
prices.
    London traders said the Asian cocoa was considered
unsuitable for western palates because of an acrid odour and a
high level of free fatty acids.
    Ng Siew Kee, the chairman of Malaysia's Cocoa Growers'
Council, said Malaysia should expand its sales to Asia and the
United States if it did not produce a type suitable for Western
Europe.
    A spokesman for the PNG Cocoa Industry Board said the
London market was mistaken if it linked PNG cocoa with
high-acid Malaysian and Indonesian beans.
    "When the market is declining, buyers seize on anything to
talk down prices," the spokesman said.
    He said that PNG could sell whatever cocoa it produces.
    PNG exported 33,000 tonnes of cocoa in the 1986/87 cocoa
year ending September 30, of which nearly 50 pct was exported
to West Germany, 16 pct to the U.S. And the rest to the
Netherlands and Britain.
    The Indonesia spokesman, an Agriculture Ministry official
who wished not to be identified, said Indonesia had no problem
with quality and would continue to expand sales. He described
criticism of the quality of Indonesian beans as "trade politics"
and said Jakarta's traditional links with Dutch buyers meant it
did not have any difficulty with exports.
    Indonesia and Malaysia, Asia's two biggest commodity
producers, are expanding cocoa output and are both outside the
International Cocoa Organization (ICCO).
    Officials have said Malaysian production is expected to
total 150,000 to 155,000 tonnes in calendar 1987.
    This is up from 131,000 tonnes in 1986, partly because of
the end of a three-year drought in Sabah, the country's largest
cocoa growing area.
    Production of Indonesian cocoa beans tripled to 31,600
tonnes in calendar 1986 from 10,284 tonnes in 1980. Output is
projected to rise to 50,000 tonnes in 1988 from 38,000 tonnes
this year as young trees mature.
    Both Malaysia and Indonesia are low cost producers and
traders said they could last out low prices longer than West
African countries.
    According to one Kuala Lumpur trader, world prices would
have to fall another 1,000 ringgit per tonne (about 250 stg) to
make cocoa production in Malaysia uneconomic.
    Some traders believe the main quality problem is with
harvesting and fermentation techniques.
    One trader said Malaysian cocoa is virtually
indistinguishable from West African output if treated in the
same way but this is not possible on the larger Malaysian
estates.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20601" NEWID="20006">
<DATE>20-OCT-1987 00:20:44.23</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0029&#31;reute
f f BC-Tokyo-stock-index-dow   10-20 0012</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Tokyo stock index down 2,210.19 points to 23,536.37 in early afternoon
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20602" NEWID="20007">
<DATE>20-OCT-1987 00:30:35.73</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE><D>nakasone</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0036&#31;reute
b f BC-JAPANESE-PREMIER-SAYS   10-20 0110</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPANESE PREMIER SAYS HE WATCHING STOCK SITUATION</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Japanese Prime Minister Yasuhiro Nakasone
was quoted by Kyodo News Service as saying he was watching the
stock market situation.
    "We must watch things a little longer. New York is down 22
pct, London 10 pct, while compared to this Japan is seven pct
down," Kyodo quoted him as telling reporters.
    Asked if he agreed with analysts who called the stock
sell-off "Black Monday," Nakasone said: "Compared with times past,
economics have changed completely." He rejected a comparison
between the present situation and the stock market collapse of
1929 and the recession which followed.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20603" NEWID="20008">
<DATE>20-OCT-1987 00:48:57.47</DATE>
<TOPICS><D>crude</D></TOPICS>
<PLACES><D>malaysia</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS><D>opec</D></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;Y 
&#22;&#22;&#1;f0049&#31;reute
u f BC-MALAYSIA-ADVISED-TO-R   10-20 0116</UNKNOWN>
<TEXT>&#2;
<TITLE>MALAYSIA ADVISED TO RAISE CRUDE OIL OUTPUT IN 1988</TITLE>
<DATELINE>    KUALA LUMPUR, Oct 20 - </DATELINE><BODY>Malaysia's national oil company,
Petronas, has advised the government to raise crude oil output
to 540,000 barrels a day (bpd) in 1988 from a current 500,000
bpd, a senior company official said.
    "We have the capacity to produce the amount," Rastam Hadi,
Petronas's Vice-President for Upstream Sector said.
    The government will announce its decision on Friday when it
unveils the country's budget. Malaysia raised output this month
to current levels from 420,000 bpd after reviewing the world
oil market. In May, Malaysia cut output to 420,000 bpd from
459,000 in response to a call by OPEC to boost prices.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20604" NEWID="20009">
<DATE>20-OCT-1987 02:15:10.98</DATE>
<TOPICS><D>money-fx</D></TOPICS>
<PLACES><D>usa</D><D>west-germany</D></PLACES>
<PEOPLE><D>sumita</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0103&#31;reute
f f BC-Sumita-welcomes-U.S.-   10-20 0012</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Sumita welcomes U.S.-West German joint confirmation of Louvre accord
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20605" NEWID="20010">
<DATE>20-OCT-1987 02:18:33.93</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0105&#31;reute
f f BC-Tokyo-stock-index-slu   10-20 0010</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Tokyo stock index slumps 14.9 pct to close at 21,910.08
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20606" NEWID="20011">
<DATE>20-OCT-1987 02:20:31.11</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>sumita</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0106&#31;reute
f f BC-Sumita-says-world-sto   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Sumita says world stockmarkets excessively concerned about economic future
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20607" NEWID="20012">
<DATE>20-OCT-1987 02:29:24.58</DATE>
<TOPICS><D>money-fx</D></TOPICS>
<PLACES><D>japan</D><D>usa</D><D>west-germany</D></PLACES>
<PEOPLE><D>sumita</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0111&#31;reute
b f BC-SUMITA-WELCOMES-U.S.-   10-20 0109</UNKNOWN>
<TEXT>&#2;
<TITLE>SUMITA WELCOMES U.S.-JAPAN AGREEMENT ON LOUVRE</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Bank of Japan governor Satoshi Sumita said
he welcomed Monday's U.S. And West German joint confirmation of
their commitment to the Louvre accord.
    Sumita said in a statement that world stockmarkets were
excessively concerned about the economic future.
    The Bank of Japan will continue to adhere to a system of
policy coordination based upon the Louvre accord of February,
he said. The accord called for stability in foreign exchange
rates. Exchange rates generally are regaining stability and the
economies of industrialised nations are heading for a steady
recovery, he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20608" NEWID="20013">
<DATE>20-OCT-1987 02:31:05.43</DATE>
<TOPICS><D>money-fx</D></TOPICS>
<PLACES><D>new-zealand</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0112&#31;reute
u f BC-NEW-ZEALAND-WILL-CONT   10-20 0074</UNKNOWN>
<TEXT>&#2;
<TITLE>NEW ZEALAND WILL CONTINUE FIRM MONETARY POLICY</TITLE>
<DATELINE>    WELLINGTON, Oct 20 - </DATELINE><BODY>The Reserve Bank of New Zealand said
there was no evidence to suggest the fall in share prices had
affected financial stability and it would maintain its firm
monetary policy.
    Governor Spencer Russell said in a statement the central
bank did not accept arguments that the battle against inflation
should now take a low second priority after the sharemarket's
plunge.
    Russell said the bank had two statutory responsibilities --
to implement the government's monetary policy to bring down
inflation, and to ensure the financial sector's stability.
    "Unless the bank is directed otherwise, the firm monetary
policy will continue because it is very much in the national
interest that it do so," he said.
    "And there is yet no evidence available to the bank to
suggest that the fall in share prices has affected the
stability of the financial sector."
    The Barclays share index fell a record 504.75 points to
2,925,26 on Tuesday, a decline of 14.7 pct.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20609" NEWID="20014">
<DATE>20-OCT-1987 02:51:54.24</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0126&#31;reute
f f BC-Tokyo-Stock-Exchange   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Tokyo Stock Exchange has no plan to suspend trading on Wednesday-president
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20610" NEWID="20015">
<DATE>20-OCT-1987 02:52:04.37</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0127&#31;reute
f f BC-Tokyo-Stock-Exchange   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Tokyo Stock Exchange to ease margin requirements, exchange president says
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20611" NEWID="20016">
<DATE>20-OCT-1987 03:02:08.52</DATE>
<TOPICS><D>money-supply</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0132&#31;reute
f f BC-Japan-September-M-2-p   10-20 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Japan September M-2 plus CD money supply rises 11.1 pct year on year (Aug 11.0)
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20612" NEWID="20017">
<DATE>20-OCT-1987 03:12:36.51</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>james-baker</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0146&#31;reute
f f BC-BAKER-HEADS-HOME-AFTE   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>BAKER HEADS HOME AFTER CUTTING SHORT EUROPE TRIP - SWEDISH FINANCE MINISTRY
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20613" NEWID="20018">
<DATE>20-OCT-1987 03:14:08.12</DATE>
<TOPICS><D>grain</D><D>corn</D></TOPICS>
<PLACES><D>tanzania</D><D>malawi</D><D>mozambique</D><D>zaire</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;G 
&#22;&#22;&#1;f0147&#31;reute
u f BC-TANZANIA-SELLS-MAIZE   10-20 0075</UNKNOWN>
<TEXT>&#2;
<TITLE>TANZANIA SELLS MAIZE TO MALAWI, MOZAMBIQUE, ZAIRE</TITLE>
<DATELINE>    DAR ES SALAAM, Oct 20 - </DATELINE><BODY>Tanzania has arranged to sell
53,000 tonnes of maize to Malawi, Mozambique and Zaire, radio
Tanzania said.
    The radio said the grain would be delivered soon, but gave
no details about the value of the sales.
    Tanzania is expecting a record maize harvest of 2.3 mln
tonnes in the 1987/88 financial year ending June, up from a
bumper crop of 2.1 mln in 1986/87.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20614" NEWID="20019">
<DATE>20-OCT-1987 03:14:33.15</DATE>
<TOPICS><D>cotton</D></TOPICS>
<PLACES><D>tanzania</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;G 
&#22;&#22;&#1;f0148&#31;reute
u f BC-TANZANIAN-COTTON-THRE   10-20 0100</UNKNOWN>
<TEXT>&#2;
<TITLE>TANZANIAN COTTON THREATENED BY LACK OF STORAGE</TITLE>
<DATELINE>    DAR ES SALAAM, Oct 20 - </DATELINE><BODY>About 60,000 tonnes of harvested
raw cotton may be spoiled by rain in Tanzania's northern
Shinyanga region because it is stored in the open or in crude
village sheds, radio Tanzania reported.
    The cotton, worth one billion shillings, cannot be moved to
ginneries in the region because most mill warehouses are full.
Many mills are not working because of a lack of spare parts, it
added.
    Agriculture Ministry officials have forecast a 1987/88
cotton harvest of about 200,000 tonnes, down from 215,000 in
1986/87.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20615" NEWID="20020">
<DATE>20-OCT-1987 03:17:41.87</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0153&#31;reute
b f BC-TOKYO-STOCK-EXCHANGE   10-20 0082</UNKNOWN>
<TEXT>&#2;
<TITLE>TOKYO STOCK EXCHANGE WILL NOT SUSPEND TRADING</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Tokyo Stock Exchange president Michio
Takeuchi said the exchange has no immediate plans to suspend
trading to cool off panic stock selling.
    However, he said Tokyo may consider such a measure if the
London and New York exchanges are closed overnight.
    "I don't think it will happen," he added.
    He also told reporters the exchange will relax margin
requirements effective on Wednesday to encourage stock buying.
    Takeuchi said the sharp fall in stock prices was mostly due
to psychological factors.
    "We need to keep close watch on market movement but we
expect the market will stabilise soon," he said, adding that
individual investors should remain calm. "It is advisable to
wait for an autonomous recovery of the market," he said.
    The margin requirement in cash will be reduced to 50 pct
from 70 pct while the margin collateral requirement in equity
will rise to 70 pct from 60 pct, effective on Wednesday, he
said.
    Takeuchi also said the exchange has no specific plan to
take coordinated action with the New York and London exchanges
to help stabilise stock prices.
    The drop on Wall Street was caused by various factors but
was primarily the result of a correction of overvalued share
prices, he said. The current stock price plunge cannot compare
with the Great Depression as the economic environment is very
different, he added.
    The exchange has not changed plans to introduce stock
futures trading next year despite press reports that the Wall
Street fall was linked with futures trading, he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20616" NEWID="20021">
<DATE>20-OCT-1987 03:26:57.39</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES><D>philippines</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0166&#31;reute
u f BC-AQUINO-SAYS-MANILA-WA   10-20 0111</UNKNOWN>
<TEXT>&#2;
<TITLE>AQUINO SAYS MANILA WATCHING INTEREST RATES CLOSELY</TITLE>
<DATELINE>    MANILA, Oct 20 - </DATELINE><BODY>President Corazon Aquino said the
Philippines was closely monitoring interest rates in the wake
of Monday's record drop on Wall Street and steep declines in
Manila and other Asian stock markets.
    "We will monitor these developments closely and will
continue to hope that they do not precipitate large declines in
economic activity around the world," Aquino told a meeting of 13
major Philippine business groups.
    "The Philippines, as a trading country in the world economy,
depends on the continued health and growth of both the world
economy and the world trading system," she said.
    The Manila Stock Exchange composite index plunged 105.49
points or 11.79 pct by the midday close to 789.54, depressed by
the record 508 point fall of the Dow Jones industrial average
on Monday.
    "The Philippines, in addition, as a large borrower nation,
is affected by developments in interest rate levels around the
world and will carefully monitor the impact of these
developments on interest rates, on gold and on commodity
prices," Aquino said.
    "We welcome the statements from world leaders that urge calm
in the present difficult situation," she added.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20617" NEWID="20022">
<DATE>20-OCT-1987 03:36:58.94</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0181&#31;reute
u f BC-NISSAN-STARTS-TO-MARK   10-20 0101</UNKNOWN>
<TEXT>&#2;
<TITLE>NISSAN STARTS TO MARKET REMODELLED 4WD VEHICLES</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Nissan Motor Co Ltd &lt;NSAN.T> said it has
started to market a remodelled version of its four wheel drive
(4WD) Safari vehicle in Japan.
    Nissan said in a statement it hopes to sell 250 vehicles a
month in Japan.
    It also plans soon to start exporting 3,400 vehicles a
month to the Australian, Middle East and Asian markets under
the name Patrol, a spokesman said.
    It will sell the vehicle in Europe sometime in the future,
with shipments from &lt;Motor Iberica S.A.>, its Spanish unit. The
volume for Europe will be set later.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20618" NEWID="20023">
<DATE>20-OCT-1987 03:38:14.97</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0182&#31;reute
u f BC-JAPAN-TO-SCRUTINISE-L   10-20 0113</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN TO SCRUTINISE LIFE INSURERS' CAPITAL GAINS</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>The Finance Ministry plans to examine how
life insurance companies realised capital gains through
transactions undertaken in June, just before the yen bond
market began to fall sharply, a senior Ministry official said.
    The move is aimed at cooling fierce competition in the
field and will pave the way for a Ministry system to check that
insurers do not inflate investment returns on the accounts to
attract investors, he said.
    Some insurers transfer part of their unrealised gains from
general accounts to the variable life accounts, violating their
internal regulations, industry sources said.
    The eight major local life-insurers which offer variable
life policies here realised an average return of 21.01 pct on
such policies in the year ended September.
    The Ministry will scrutinise the policies of 17 local and
foreign life insurers which offer the variable life schemes.
    Japan has 23 major local life insurers, none of which is
listed on the stock market.
  REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20619" NEWID="20024">
<DATE>20-OCT-1987 04:03:13.28</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>lse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0211&#31;reute
f f BC-FTSE-100-share-index   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>FTSE 100 share index opens 186.0 down at 1,866.3 - London Stock Exchange
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20620" NEWID="20025">
<DATE>20-OCT-1987 04:10:11.01</DATE>
<TOPICS><D>money-supply</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0223&#31;reute
b f BC-JAPAN-MONEY-GROWTH-TO   10-20 0110</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN MONEY GROWTH TO STAY AT 11-12 PCT - OFFICIAL</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Growth in Japan's M-2 plus certificates of
deposit (CD) money supply in the October to December period is
not expected to accelerate, but will remain at high levels
between 11 and 12 pct, a senior Bank of Japan official said.
    The central bank will keep a watch on high growth in
liquidity because this is a factor that may cause rises in
prices of goods, he said.
    The September growth of 11.1 pct year on year announced
earlier today should not be taken as implying that the money
supply has started to expand very rapidly, he said. In August
the rate of increase was 11.0 pct.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20621" NEWID="20026">
<DATE>20-OCT-1987 04:11:39.73</DATE>
<TOPICS></TOPICS>
<PLACES><D>west-germany</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0225&#31;reute
u f BC-W.GERMAN-CAR-OUTPUT,   10-20 0093</UNKNOWN>
<TEXT>&#2;
<TITLE>W.GERMAN CAR OUTPUT, EXPORTS RISES IN SEPTEMBER</TITLE>
<DATELINE>    FRANKFURT, Oct 20 - </DATELINE><BODY>West German car and van production rose
in September to 407,600 from 386,000 in September 1986, while
exports climbed to 226,300 from 218,200, the German Automobile
Industry Association VDA said.
    The association added that incoming domestic orders in
September were above, and foreign orders roughly equal, to
those in September last year.
    Car and van production rose in the first nine months of the
year to 3.25 mln from 3.19 mln. But exports fell to 1.80 mln
from 1.85 mln
     Output of light trucks fell in September to 13,200 from
14,700, while heavy truck production was unchanged at 10,100.
    Over the nine month period, light truck production fell to
109,300 from 129,200, while heavy truck production dipped to
83,800 from 84,700.
    Exports of light trucks fell in September to 7,800 from
9,000 and to 66,600 from 84,300 in the first nine months.
    Exports of heavy trucks rose to 5,500 in September from
4,600 in September last year and to 47,800 from 45,300 in the
first nine months.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20622" NEWID="20027">
<DATE>20-OCT-1987 04:19:37.24</DATE>
<TOPICS></TOPICS>
<PLACES><D>new-zealand</D></PLACES>
<PEOPLE><D>douglas</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0240&#31;reute
u f BC-DOUGLAS-SAYS-N.Z.-NOT   10-20 0099</UNKNOWN>
<TEXT>&#2;
<TITLE>DOUGLAS SAYS N.Z. NOT ISOLATED FROM WORLD MARKETS</TITLE>
<DATELINE>    WELLINGTON, Oct 20 - </DATELINE><BODY>Finance Minister Roger Douglas said
the fall in share prices on local and world markets
demonstrated that New Zealand could not be isolated from global
trends.
    "We can't expect to isolate ourselves from developments
around the world," Douglas told reporters.
    "I think above all what today's problems illustrate is that
the sort of policies that we have been putting in place the
last three years are absolutely essential so that New Zealand's
economic performance improves, relative to the rest of the
world."
    The New Zealand share market fell 14.7 pct on Tuesday in a
record one-day fall.
    Douglas told a news conference, at which the government
announced plans to sell its 89 pct stake in &lt;New Zealand Steel
Ltd>, that the sharemarket fall would not affect plans to sell
parts of state-owned corporations such as &lt;Air New Zealand>,
&lt;DFC New Zealand Ltd> and &lt;Petroleum Corp of New Zealand Ltd>.
Asked if the government considered acting to close the
sharemarket for a period, Douglas said: "No. I'm not sure it
would have been my job to do so."
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20623" NEWID="20028">
<DATE>20-OCT-1987 04:21:55.55</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0243&#31;reute
u f BC-WILL-WORLD-RECESSION   10-20 0086</UNKNOWN>
<TEXT>&#2;
<TITLE>WILL WORLD RECESSION FOLLOW STOCK MARKET PLUNGE?</TITLE>
<AUTHOR>    By Linda Sieg</AUTHOR>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Some economists fear a world recession if
stock exchanges continue to plunge. Others are more sanguine.
    The pessimists say the stocks shakeout is destroying
personal assets and dampening consumption.
    "The real economic effects can be significant -- the
destruction of wealth and a deflationary impact on the economy,"
said an economist at a U.S. Securities house.
    But other economists said such fears were overblown.
    "Because of lower appreciation of corporate or personal
assets, that much negative impact could be observed (in the
U.S.)," said Keikichi Honda, general manager of economic
research at the Bank of Tokyo Ltd.
    "But the appreciation of stock prices has not been playing
such a major role in the entire U.S. Gross national product
(GNP)," Honda said.
    The pessimists noted that the record fall on Wall Street on
Monday was sparked by fears the U.S. Economy is heading for a
recession or serious slowdown much earlier than expected.
    But the optimists said a dampening effect on consumption
due to stock market losses was less likely in Japan.
    "In Japan the weight of stocks in individuals' total assets
is less than in the U.S., And the total weight of individuals'
holdings in the stock market is less, so there will be less
damage than in the U.S.," said an economist at one of Japan's
major brokerage houses.
    "Japan is taking strong measures to stimulate domestic
demand, so while there could be some impact from the reduction
of assets value, it would not be a major impact," said the Bank
of Tokyo's Honda.
    Optimists also pointed to incipient declines in U.S.
Interest rates as a positive sign for the U.S. Economy.
    "U.S. Interest rates are coming down so there is a feeling
that interest rates have hit their ceiling, and the U.S.
Economy is strong, so there should be no direct impact from the
collapse of share prices," said Toshiaki Kakimoto, Sumitomo Bank
Ltd chief economist.
    Some economists suggested that should markets continue to
slump, the major industrial nations may have to discuss
possible joint lowering of official discount rates.
    "Until last week, a discussion of lower rates was
unthinkable, now it's not," said the Japanese brokerage house
economist.
    "There has been a move from the purely rational to the
emotional -- it's a central bankers' nightmare," said the
foreign economist. "It will require strong global leadership by
politicians to snuff out," he said.
    However, "previously, the stocks correction was due to fears
of higher interest rates, a possible resurgence of inflation
and the depreciation of the dollar," said Nobuyuki Ueda, senior
economist at the Long-Term Credit Bank Ltd.
    "Now some people have an uneasy feeling about the outlook of
the U.S. Economy," Ueda said.
    "If the stock market is a leading indicator of the future
movement of the economy, this decline will have very
significant implications for the U.S. Economy," he said.
    "If the low levels hold, those who were keeping consumption
high because of unrealised gains could curb consumption," said
Salomon Brothers (Asia) Ltd economist Ron Napier. "If the paper
gains aren't there, people won't spend."
    A U.S. Recession could then trigger similar declines in
other economies, some economists said.
    "I don't know if a possible recession in the U.S. Would
trigger a world recession because other nations, such as Japan,
are showing good economic performance," LTCB's Ueda said. "But we
can't rule out the possibility because the U.S. Is still
playing a very dominant role in the world economy."
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20624" NEWID="20029">
<DATE>20-OCT-1987 04:25:26.49</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE><D>nakasone</D><D>miyazawa</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>tse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0246&#31;reute
u f BC-JAPAN-TRIES-TO-STEM-S   10-20 0097</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN TRIES TO STEM STOCKS DIVE</TITLE>
<AUTHOR>    By Linda Sieg</AUTHOR>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Government and monetary authorities today
staged a concerted effort to calm spreading panic on Japanese
stock exchanges but market analysts said there were limits to
their ability to succeed.
    "The ability of the Big Four (Japanese securities houses)
and the Finance Ministry is limited," said Barclays de Zoete
Wedd economist Peter Morgan.
    Finance Ministry officials asked the big four securities
companies this afternoon to help calm panic selling on the
Tokyo Stock Exchange, ministry officials said.
    Prime Minister Yasuhiro Nakasone was quoted by Kyodo News
Service as saying he was watching the stock market situation.
    But he rejected comparisons with the 1929 stock market
collapse and subsequent recession.
    Finance Minister Kiichi Miyazawa said the Tokyo stock
market should not be gravely affected by downturns in New York
and London because there are clear signs of a Japanese economic
recovery and exchange rate stability.
    Bank of Japan Governor Satoshi Sumita also tried to calm
the panic, saying in a statement that world stock markets were
excessively concerned about the economic future.
    Traditionally, the four big houses  -- Nomura Securities Co
Ltd, Yamaichi Securities Co Ltd, Daiwa Securities Co Ltd, and
Nikko Securities Co Ltd -- have influenced the market because
of their sheer size and overwhelming market share.
    This strength has in the past made it possible for the
brokerages to calm down markets under guidance from the Finance
Ministry, analysts said.
    But the analysts questioned whether the brokerages, which
have already suffered heavy losses from falling bond markets
over the past year, would have the strength this time to turn
things around.
    "The question is, are the Japanese brokerages strong enough
to force investors to buy," said Johsen Takahashi, research
director at the Mitsubishi Research Institute.
    "If we consider that they have suffered serious losses in
the bond markets and in their U.S. Investments, it is debatable
whether they they could support buying," he said.
    "We can support things to some extent, but we can't
completely suppress selling," said one Japanese broker.
    Some analysts said the high percentage of shares cross-held
by financial institutions and other corporations could have a
stabilising effect on the market.
    Some 80 pct of shares are held by corporate shareholders,
said Keikichi Honda, general manager of the Bank of Tokyo Ltd's
economic research division. "This is a tightly woven textile. In
its own way it is stronger than Wall Street."
    But other analysts expressed doubt about this argument.
    "If a high percent of shares is cross held, everything
happens at the edges and the relative moves can be larger," said
Kleinwort Benson Ltd financial analyst Simon Smithson. "Selling
will drive prices down an enormous distance because of no
liquidity."
    "You don't need big volume to get big declines in the market
-- you just need a huge imbalance between sellers and buyers,"
said Barclay's Morgan.
    Shares held by what are termed "stable shareholders," or
banks and other companies with which a firm does business,
might also find their way onto the market if the outlook gets
bad enough, some analsyst said.
    "Closely held shares could become unclosely held," said
Morgan. But he said such a prospect is unlikely right now
because companies, with their improved earnings prospects, do
not need to sell shares for cash flow reasons.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20625" NEWID="20030">
<DATE>20-OCT-1987 04:30:24.90</DATE>
<TOPICS><D>crude</D><D>ship</D></TOPICS>
<PLACES><D>indonesia</D></PLACES>
<PEOPLE><D>subroto</D></PEOPLE>
<ORGS><D>opec</D></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V Y 
&#22;&#22;&#1;f0257&#31;reute
u f BC-WORLD-COULD-COPE-WITH   10-20 0105</UNKNOWN>
<TEXT>&#2;
<TITLE>WORLD COULD COPE WITH HORMUZ CLOSURE, SUBROTO SAYS</TITLE>
<DATELINE>    JAKARTA, Oct 20 - </DATELINE><BODY>Oil prices would skyrocket for a time if
conflict in the Gulf closed the Strait of Hormuz, but oil
supplies could be adjusted to take care of world demand,
Indonesian Energy Minister Subroto said.
    He made no explicit reference to the latest U.S. Military
action in the Gulf.
    But in an address to a conference of the Indonesian
Petroleum Association, he said, "If worst comes to worst and say
the flow of oil through the Straits of Hormuz is completely
shut off, I believe the world oil supply, given time to adjust,
can take care of the situation."
    "But this is not to say that prices, at least for a short
duration, will not skyrocket as speculators take advantage of
the situation," he declared.
    Tensions in the Gulf, however, usually had a relatively
short-term impact on prices, he added.
    Assessing future price trends, he said, "Short-term spot
prices will probably still fluctuate, but they will most likely
hover around the official Opec price basket of 18 dlrs per
barrel.
    "The upward deviations, however, are likely to be greater
than the downward ones."
    "The balance between supply and demand in the short term
will still be delicate," he added. "Non-Opec production may still
go up, competing with Opec for the expected additional increase
in world demand."
    Subroto, a member of Opec's three-man quota committee which
has been touring cartel members, said speculation may play
havoc with spot prices, but Opec was trying to stabilize the
situation by urging cooperation by non-Opec producers.
    In the medium term, non-Opec production would reach a
plateau in the early 1990s, leaving Opec much stronger, he
said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20626" NEWID="20031">
<DATE>20-OCT-1987 04:34:41.19</DATE>
<TOPICS><D>jet</D></TOPICS>
<PLACES><D>bangladesh</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;Y 
&#22;&#22;&#1;f0264&#31;reute
u f BC-BANGLADESH-TENDERS-FO   10-20 0059</UNKNOWN>
<TEXT>&#2;
<TITLE>BANGLADESH TENDERS FOR TWO MLN BARRELS PETROLEUM</TITLE>
<DATELINE>    DHAKA, Oct 20 - </DATELINE><BODY>Bangladesh Petroleum Corp said it floated
an international tender for imports of two mln barrels of Jet
Kero, Superior Kero and High Speed Diesel for shipment during
January-June 1988.
    It said the offer for the petroleum products would be open
until 0600 gmt on November 19.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20627" NEWID="20032">
<DATE>20-OCT-1987 04:48:51.01</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>poehl</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0286&#31;reute
f f BC-Poehl-says-German-and   10-20 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> Poehl says German and international interest rate rises are cause for concern
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20628" NEWID="20033">
<DATE>20-OCT-1987 04:49:48.44</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>poehl</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0287&#31;reute
f f BC-Bundesbank-has-no-int   10-20 0012</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> Bundesbank has no interest in higher capital market rates - Poehl
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20629" NEWID="20034">
<DATE>20-OCT-1987 04:53:02.87</DATE>
<TOPICS><D>ship</D></TOPICS>
<PLACES><D>bahrain</D><D>iran</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;Y 
&#22;&#22;&#1;f0289&#31;reute
u f BC-IRANIAN-TANKER-REPORT   10-20 0079</UNKNOWN>
<TEXT>&#2;
<TITLE>IRANIAN TANKER REPORTS SIGHTING MINE IN GULF</TITLE>
<DATELINE>    BAHRAIN, Oct 20 - </DATELINE><BODY>An Iranian shuttle tanker reported
spotting a floating mine in the central Gulf on Tuesday about
50 miles west of Lavan Island, regional shipping sources said.
    The Khark III, owned by the National Iranian Tanker Co,
gave the position of the mine as 27 degrees 14 minutes north,
52.06 east.
    There was no indication of measures being taken against the
mine, which is in Iranian territorial waters.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20630" NEWID="20035">
<DATE>20-OCT-1987 04:54:40.64</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES><D>uk</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0290&#31;reute
r f BC-FABER-OPEN-FOR-OFFERS   10-20 0093</UNKNOWN>
<TEXT>&#2;
<TITLE>FABER OPEN FOR OFFERS ON MORGAN GRENFELL STAKE</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>Willis Faber Plc &lt;WIFL.L> chairman and
chief executive David Palmer said the company would consider
any bid for its 20.8 pct shareholding in Morgan Grenfell Group
Plc &lt;MGFL.L> but had not yet received any offers.
    "We will entertain any approaches," he told Reuters in reply
to questions, following U.K. Press speculation.
    In an earlier statement, Faber said that if an offer were
to be received for its stake in the merchant banking group, "it
would be considered on its merits."
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20631" NEWID="20036">
<DATE>20-OCT-1987 04:58:56.26</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>poehl</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0293&#31;reute
f f BC-Inflationary-fears-ar   10-20 0011</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> Inflationary fears are unjustified and exaggerated, Poehl says
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20632" NEWID="20037">
<DATE>20-OCT-1987 04:59:07.79</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES><D>uk</D><D>canada</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0294&#31;reute
u f BC-CORBY-DISTILLERIES-TO   10-20 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>CORBY DISTILLERIES TO EXPAND IN CANADA</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>&lt;Corby Distilleries Ltd>, 52 pct owned by
Allied Lyons Plc &lt;ALLD.L> subsidiary &lt;Hiram Walker-Goodman &amp;
Worts> is to buy the spirits business of &lt;McGuinness Distillers
Ltd> of Toronto for 45 mln Canadian dlrs.
    McGuinness is a producer and marketer of spirits and also
has exclusive agencies for some imported wines and spirits.
    The sale is subject to the approval of the Bureau of
Competition Policy. Michael Jackaman, president and chief
executive officer of Hiram Walker and Allied Vintners, said,
"The acquisition is an excellent one both commercially and
financially."
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20633" NEWID="20038">
<DATE>20-OCT-1987 04:59:48.03</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES><D>west-germany</D></PLACES>
<PEOPLE><D>poehl</D><D>james-baker</D><D>stoltenberg</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0295&#31;reute
b f BC-POEHL-SAYS-RATE-RISES   10-20 0088</UNKNOWN>
<TEXT>&#2;
<TITLE>POEHL SAYS RATE RISES ARE CAUSE FOR CONCERN</TITLE>
<DATELINE>    FRANKFURT, Oct 20 - </DATELINE><BODY>Rises in West German and international
interest rates are a cause for concern and the Bundesbank has
no interest in higher capital market rates, Bundesbank
President Karl Otto Poehl said.
    "We consider the interest rate increase that has occurred
here and internationally to be a problem and cause for concern,"
Poehl told an investment conference.
    "I would like to stress that the Bundesbank has no interest
in higher capital market rates," he said.
    Shortly after Poehl spoke, the Bundesbank announced a
tender for a securities repurchase pact at a fixed rate of 3.80
pct.
    Previous tenders over the last month by interest rate have
seen the allocation rate on these facilities rise to 3.85 pct
at last week's pact from 3.60 on the last fixed-rate tender in
late September.
    The Bundesbank's reduction of the key allocation rate to
3.80 from 3.85 pct was heralded Monday by repeated injections
of money market liquidity at between 3.70 and 3.80 pct.
    These moves to cap interest rates followed a meeting
between Poehl, Finance Minister Gerhard Stoltenberg and U.S.
Treasury Secretary James Baker Monday in Frankfurt.
    Officials said afterwards the three men had reaffirmed
their commitment to the Louvre accord on currency stability.
    Over the weekend, criticism by Baker of the tightening in
West German monetary policy had prompted a sharp fall of the
dollar on speculation that Louvre cooperation had ended.
    But the dollar rallied on news of Monday's meeting in
nervous trading to trade above 1.79 marks Tuesday.
    Poehl said that the recent rise in interest rates was not
due to central bank policy, but to markets' expectations, and
currency developments.
    Commenting on the inflationary expectations, Poehl said "You
have to get to the root of the problem, you have to pursue a
policy which reveals that there are no grounds for such fears."
 The inflationary fears were unjustified and exaggerated, he
said.
    Poehl rebuffed recent U.S. Criticism of West Germany,
saying the Bundesbank had made a substantial contribution to
international cooperation in interest and monetary policy.
    The Bundesbank has tolerated an overshooting of its money
supply target, arousing criticism from other quarters, he said.
    "Today we still have lower interest rates than at the end of
1986... Quite the contrary of other countries, where interest
rates have risen substantially more," Poehl said.
    This had to be taken into account when considering recent
rises in repurchase pact allocation rates, which were due to
rising international money market rates that had spilled over
into the German market, he said.
    Poehl expressed surprise that financial markets had so far
ignored improvements in the U.S. Deficits.
    "The adjustment process in the U.S. Trade balance is
definitely underway," he said, noting that this was not so
noticeable in absolute figures.
    The spectacular improvement in the budget deficit had also
attracted little attention, he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20634" NEWID="20039">
<DATE>20-OCT-1987 05:00:49.66</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES><D>uk</D></PLACES>
<PEOPLE><D>lawson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0296&#31;reute
b f BC-LAWSON-SAYS-BP-SHARE   10-20 0108</UNKNOWN>
<TEXT>&#2;
<TITLE>LAWSON SAYS BP SHARE OFFER GOING AHEAD</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>U.K. Chancellor of the Exchequer Nigel
Lawson said the Government was going ahead with this month's
flotation of British Petroleum Co Plc &lt;BP.L> shares despite the
collapse on international stock markets.
    "We are going ahead because the whole issue has been
underwritten - we had it underwritten because there is always a
risk of this sort of thing happening," Lawson said in a BBC
radio interview.
    Lawson's remarks came as renewed selling on the London
stock market took BP shares down a further 33p to 283, well
below the 330p price set for the around seven billion stg
issue.
    Lawson said the U.K. Economy is fundamentally sound and
added that stock markets had reflected that recently.
    "I profoundly believe in the market system as the best way
for securing economic prosperity (but) that does not mean to
say the markets are infallible."
    "My advice to small investors...Is to remain calm. There is
absolutely no reason not to do so," Lawson said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20635" NEWID="20040">
<DATE>20-OCT-1987 05:01:49.86</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0300&#31;reute
f f BC-   10-20 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> Bundesbank sets 35-day securities repurchase tender at fixed rpt fixed 3.80 pct
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20636" NEWID="20041">
<DATE>20-OCT-1987 05:03:42.33</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>pse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0303&#31;reute
f f BC-Paris-share-price-ind   10-20 0010</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Paris share price indicator opens 2.31 pct down - official
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20637" NEWID="20042">
<DATE>20-OCT-1987 05:05:18.65</DATE>
<TOPICS></TOPICS>
<PLACES><D>uk</D><D>usa</D></PLACES>
<PEOPLE><D>lawson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>lse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0305&#31;reute
u f BC-LAWSON-CALLS-DEGREE-O   10-20 0114</UNKNOWN>
<TEXT>&#2;
<TITLE>LAWSON CALLS DEGREE OF SHARE FALL ABSURD</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>U.K. Chancellor of the Exchequer Nigel
Lawson said the severity of the current rout on world stock
markets was an absurd over-reaction sparked on Wall Street by a
spreading lack of confidence in the U.S. Economy.
    Lawson said in a BBC radio interview, "This began on Wall
Street. It has a lot to do with the American stock market (and)
a lack of confidence in the U.S. -  and some careless talk by
those who should have known better."
    In a further wave of selling this morning in London, the
FTSE 100 index had lost a further 233.2 points only 50 minutes
after the official 0800 GMT opening to stand at 1,819.1.
    Lawson said a correction on world stock markets was to have
been expected after the bull markets of recent years. "What was
not expected was the severity of the downturn, which quite
frankly is rather absurd."
    He said he saw no fundamental signs why the U.S. Economy
should go into recession, adding, "Indeed the possibility of
higher (U.S.) interest rates would certainly in my judgment not
lead the American economy into a recession."
    "The only way in which the American economy would go into
recession was if it actually talks itself into recession," he
said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20638" NEWID="20043">
<DATE>20-OCT-1987 05:06:25.13</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0308&#31;reute
u f BC-BANK-OF-JAPAN-SEES-ST   10-20 0114</UNKNOWN>
<TEXT>&#2;
<TITLE>BANK OF JAPAN SEES STEADY ECONOMIC RECOVERY</TITLE>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>The Japanese economy is firmly on the
recovery path, supported by robust domestic demand, the Bank of
Japan said in a regular monthly report.
    The report said industrial production is strengthening as
manufacturing companies have almost completed adjustments of
their plant and equipment investment while non-manufacturing
firms have continued to be positive in their capital spending.
    Strong domestic demand, such as consumer spending and
housing investment, will more than offset declining exports,
the central bank report said. It also noted the continued rise
in domestic wholesale prices and money supply.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20639" NEWID="20044">
<DATE>20-OCT-1987 05:07:16.01</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>lse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0311&#31;reute
f f BC-London's-FTSE-100-sha   10-20 0011</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>London's FTSE 100 share index falls below 1,800 - Stock Exchange
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20640" NEWID="20045">
<DATE>20-OCT-1987 05:08:54.04</DATE>
<TOPICS><D>coconut</D></TOPICS>
<PLACES><D>philippines</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;G 
&#22;&#22;&#1;f0315&#31;reute
u f BC-PHILIPPINES-APPLAUDS   10-20 0108</UNKNOWN>
<TEXT>&#2;
<TITLE>PHILIPPINES APPLAUDS DEFEAT OF U.S. LABELLING BILL</TITLE>
<AUTHOR>    By Diane Stormont</AUTHOR>
<DATELINE>    MANILA, Oct 20 - </DATELINE><BODY>The Philippine coconut industry has
greeted with relief the defeat in the U.S. Senate of a bill
requiring some edible oils to be labelled as saturated fats.
    The bill, which was defeated by the Senate Agriculture
Committee on Monday, could have cost about 60 mln dlrs a year
in lost exports, the Philippine Coconut Authority (PCA) said.
    "Naturally, we welcomed the defeat but there is a chance the
bill will be resurrected and attached as a rider to another
Senate bill," a spokesman for the United Coconut Association of
the Philippines (UCAP).
    PCA chairman Jose Romero noted the vote was close, with
eight senators voting for it, 10 against and one abstaining.
    The UCAP spokesman said the American Soybean Association
(ASA) had spent about 25 mln dlrs lobbying for the bill.
    He said the ASA also had obscured the health issue during
the debate.
    "Coconut oil is high in saturated fats, but unlike saturated
animal fats, they do not enter the blood and lymph systems
leaving fatty deposits connected to heart disease," he said.
    U.S. Soybean and cottonseed producers had argued that
saturated fats cause heart disease and that the labels would
discourage consumption by health conscious consumers in favour
of domestic unsaturated alternatives.
    Opponents of the bill said the proposal discriminated
against imports and would damage the Philippines, Malaysia and
Indonesia.
    The Philippines earned 488 mln dlrs from coconut products
in 1986, up from 477 mln in 1985, UCAP figures show.
    Exports to the United States for edible and non-edible use
account for about half of that total, PCA's Romero said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20641" NEWID="20046">
<DATE>20-OCT-1987 05:17:40.79</DATE>
<TOPICS></TOPICS>
<PLACES><D>thailand</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0331&#31;reute
u f BC-THAI-STOCKS-PLUNGE-IN   10-20 0091</UNKNOWN>
<TEXT>&#2;
<TITLE>THAI STOCKS PLUNGE IN REACTION TO WORLDWIDE TREND</TITLE>
<AUTHOR>    By Vithoon Amorn</AUTHOR>
<DATELINE>    BANGKOK, Oct 20 - </DATELINE><BODY>Thai stock prices plunged on Tuesday as
nervous investors unloaded shares on reports of steep declines
on major world stock markets.
    Brokers said the Securities Exchange of Thailand Index fell
a record 36.64 points, or nearly eight pct, to close at 422.37.
    "It's impossible to halt the slide in this situation. The
market just doesn't behave logically," said Sirivat
Voravetvuthikun, executive vice president of Asian Securities
Trading Co Ltd.
    But Sirivat said he did not believe the fall would mark the
end of the SET's 16 month bull run, which has accelerated
during the last two months. He expected Thai stocks to
fluctuate widely in the next few weeks.
    The slide on Tuesday followed a 13.85 point decline of the
97-stock index on Monday when it closed at 459.01.
    Brokers said they were flooded with sell orders when the
market opened this morning and a SET announcement urging
investors not to panic was ignored.
    The index reached a record 472.86 last Friday, up 57.7 pct
from end-June and 128.2 pct higher than last December.
    SET officials said 77 issues were traded on Tuesday, of
which all but two declined. Of the losers, 68 plummeted the
daily maximum 10 pct allowed by the exchange. Prices on the
special foreign column also fell sharply.
    SET vice president Suthichai Chitvanich told reporters the
10 pct floor serves as a restraint, making it unnecessary to
suspend trading should the panic continue.
    The Thai exchange has lately been gaining on its own
strength with most buying coming from local investors.
    Investors should not be unduly influenced by foreign market
reports, he added.
    Suthichai said sound local fundamentals, including low
interest rates and promising economic growth, favoured
investment in the stock market.
    The SET also announced it would release third quarter
corporate earnings earlier than expected as part of efforts to
shore up public confidence.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20642" NEWID="20047">
<DATE>20-OCT-1987 05:28:05.60</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>mise</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0355&#31;reute
f f BC-Milan-bourse-opening   10-20 0011</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Milan bourse opening delayed one hour to 1200 GMT - official
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20643" NEWID="20048">
<DATE>20-OCT-1987 05:31:21.81</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0357&#31;reute
u f BC-TOKYO-STOCK-PLUNGE-CO   10-20 0106</UNKNOWN>
<TEXT>&#2;
<TITLE>TOKYO STOCK PLUNGE COULD FORCE EASIER MONEY POLICY</TITLE>
<AUTHOR>    By Rich Miller</AUTHOR>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Plunging Tokyo stock prices will prevent
the Bank of Japan from raising its discount rate and could even
force it to ease monetary policy if the collapse continues,
government and private economists said.
    A rise in interest rates now would only serve to spark
further selling of shares that could ultimately have a major
deflationary impact on the real economy, they said.
    Although Bank of Japan officials have consistently
maintained that they had no plans to raise the 2.5 pct discount
rate, many in the markets have thought otherwise. 
    Fears of a rise in the discount rate were fanned by the
central bank's apparent decision last week to countenance
higher rates on commercial bills, dealers said.
    But today's stock market collapse -- prices fell nearly 15
pct -- means that the Bank of Japan would be hard pressed to
raise the discount rate now, despite its concerns about a
renewed outbreak of inflation, dealers and economists said.
    Japanese government bond prices rose sharply today as the
markets concluded that the stock market's collapse precluded
the central bank from carrying out the widely-rumoured discount
rate increase.
    A senior government economist suggested that both the U.S.
And Japan needed to ease monetary policy now to prevent a
further drop in New York and Tokyo stock prices. "They need to
support the stock and security markets," he said.
    But Bank of Japan officials said they saw no need to change
policy for the moment, although one admitted that the central
bank may have to rethink its strategy if Tokyo stock prices
continue to plunge during the rest of the week.
    Both government and Bank of Japan economists agreed the
economy is better placed now to cope with the deflationary
impact of plunging stock prices than it was a few months ago.
    With the economy recovering strongly, the steep drop in
stock prices is not likely to put a major dent in consumer and
business confidence, one government economist said.
    "There will be some impact on the real economy, but it won't
be that big," said another.
    Individuals are not heavily invested in stocks on their
own, although they do participate through trust funds and other
investment vehicles. And while many manufacturing firms turned
to financial market investments for profits during last year's
economic downturn, the recent rebound has allowed them to
refocus their attention on their core businesses, he said.
    Paradoxically, it is the pick-up in the economy that is
partly to blame for the stock market collapse as companies have
shifted funds away from financial investments to increase
inventories and step up capital spending, one government
economist said.
    In deciding what response to make to the steep stock price
drop, the Bank of Japan must first determine whether prices
will continue to fall further and then decide if they pose a
greater economic danger than the threat of higher inflation,
one central bank official said. "That will at least take a
couple of days, if not weeks," he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20644" NEWID="20049">
<DATE>20-OCT-1987 05:34:04.54</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>mise</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0363&#31;reute
f f BC-CORRECTED-Milan-Bours   10-20 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>CORRECTED-Milan Bourse opening delayed an hour to 1000 GMT (NOT 1200 GMT)-official
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20645" NEWID="20050">
<DATE>20-OCT-1987 05:43:10.09</DATE>
<TOPICS></TOPICS>
<PLACES><D>philippines</D></PLACES>
<PEOPLE><D>aquino</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0379&#31;reute
u f BC-AQUINO-SAYS-GROWTH-HA   10-20 0098</UNKNOWN>
<TEXT>&#2;
<TITLE>AQUINO SAYS GROWTH HAS PRIORITY OVER DEBT PAYMENTS</TITLE>
<DATELINE>    MANILA, Oct 20 - </DATELINE><BODY>President Corazon Aquino said economic
growth took priority over debt repayments but she sought to
dispel fears that the Philippines would not honour a July
agreement rescheduling 13.2 billion dlrs of debt.
    In a speech to 13 major business groups, Aquino said, "Our
policy has been very clear fm the start -- growth must take
priority, for the plain and simple reason that if we have no
money to pay, we can't. And if we starve the nation of
essential services, there may be no one around to honour the
debt."
    Aquino said her officials would try to get all 483 creditor
banks to sign the debt rescheduling pact by the November 15
effective date.
    "That should end speculation and remove at least one excuse
for hoarding dollars," Aquino said.
    Violent fluctuations in the peso's exchange rate and the
end of a 17-month bull run in local stock markets have
triggered dollar-hoarding.
    Aquino said the country's foreign debt, which rose to
nearly 29 billion dlrs in April, was growing even without fresh
borrowing.
    Debt servicing took up 40 pct of the budget and 45 pct of
export earnings, Aquino said. Over the next six years, the
Philippines would be paying its creditors 20 billion dlrs while
getting only four billion dlrs in new loans.
    Aquino acknowledged there were grave doubts about her
government's ambitious privatisation program.
    "There is always an excuse for government not to sell," she
said, but she added: "I want government to get out of business."
She said non-performing assets would be sold in open bidding
and Filipinos and foreigners would compete on equal terms.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20646" NEWID="20051">
<DATE>20-OCT-1987 05:43:53.22</DATE>
<TOPICS></TOPICS>
<PLACES><D>uk</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0380&#31;reute
b f BC-E.F.-HUTTON-DENIES-RU   10-20 0113</UNKNOWN>
<TEXT>&#2;
<TITLE>E.F. HUTTON DENIES RUMOURED SOLVENCY PROBLEMS</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>Brokerage firm E.F. Hutton Group Inc &lt;EFH>
is not facing liquidity problems as a result of the fall on
Wall Street, nor is the firm on the brink of insolvency, London
joint managing director Harry Romney said.
    He was replying to Reuter questions about market rumours
that Hutton could be in financial difficulties.
    Romney noted the New York-based firm employs 16,000 to
17,000 people worldwide. Questioned on whether Hutton might be
considering cutbacks in line with some other big U.S.
Securities houses, he said Hutton's operations were under
contuous review, but no announcements were imminent.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20647" NEWID="20052">
<DATE>20-OCT-1987 05:46:18.76</DATE>
<TOPICS><D>grain</D><D>rice</D></TOPICS>
<PLACES><D>philippines</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;G 
&#22;&#22;&#1;f0386&#31;reute
u f BC-RICE-RESEARCH-INSTITU   10-20 0100</UNKNOWN>
<TEXT>&#2;
<TITLE>RICE RESEARCH INSTITUTE NAMES NEW HEAD</TITLE>
<DATELINE>    MANILA, Oct 20 - </DATELINE><BODY>The Manila-based International Rice
Research Institute (IRRI) said West German agricultural
scientist Klaus Lampe will take over as its director-general in
early 1988, succeeding M.S. Swaminathan.
    An IRRI statement said Lampe, 56, is currently senior
adviser to the German Agency for Technical Cooperation at
Eschborn and was a former head of the agriculture section of
the Federal Ministry for Economic Cooperation.
    It said Swaminathan, who has headed IRRI since 1982, will
concentrate on environmental and agricultural issues.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20648" NEWID="20053">
<DATE>20-OCT-1987 05:46:54.39</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>mise</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0392&#31;reute
b f BC-CONSOB-DELAYS-MILAN-B   10-20 0089</UNKNOWN>
<TEXT>&#2;
<TITLE>CONSOB DELAYS MILAN BOURSE OPENING ONE HOUR</TITLE>
<DATELINE>    MILAN, Oct 20 - </DATELINE><BODY>The opening of the Milan bourse and Italy's
nine other stock exchanges has been delayed one hour to 1000
GMT by stock market regulatory agency Consob.
    A Consob spokesman told Reuters the action was taken "to
give operators time to reflect on the agreement between
Treasury Secretary James Baker and West German officials on the
Louvre accord." He did not elaborate.
    The Milan Stock Index (MIB), base January 2 equals 1000,
closed down 6.26 pct yesterday.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20649" NEWID="20054">
<DATE>20-OCT-1987 06:07:59.83</DATE>
<TOPICS></TOPICS>
<PLACES><D>uk</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>lse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f0436&#31;reute
b f BC-STOCK-EXCHAGE-SAYS-NO   10-20 0093</UNKNOWN>
<TEXT>&#2;
<TITLE>STOCK EXCHAGE SAYS NO QUESTION OF HALTING TRADING</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>A spokeswoman for the London Stock
Exchange said there was no question of trading being suspended
because of the unprecedented three-day drop in prices, which
has seen almost 23 pct wiped off share values.
    Trading on the Hong Kong market has been called off until
Monday because of the steep slide on Wall Street amid panic
selling on all the world's stock exchanges.
    The Tokyo market was 14.9 pct off last night after a huge
508 point (22.5 pct) fall on Wall Street yesterday.
    The Stock Exchange said although the Stock Exchange
Automated Quotation (SEAQ) system was working perfectly, "fast
market" conditions may pevail periodically.
    A "fast market" indicator is displayed at the bottom of the
SEAQ screen when the huge volume of activity is delaying prices
from entering the system, making screen prices lag behind the
prevailing market.
    Such conditions are reviewed every 30 minutes and at 1000
GMT were withdrawn and all on screen prices became firm.
    The Exchange said the mandatory quote period will still end
at 1600 GMT but depending upon trading activity the market
indices may again be calculated up to 1630 GMT instead of the
usual 1600 GMT.
    At 0945 GMT the FTSE 100 share index was down 259.1 points
at 1,793.2, 12.6 pct lower so far today.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20650" NEWID="20055">
<DATE>20-OCT-1987 06:12:19.69</DATE>
<TOPICS><D>alum</D></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;C M 
&#22;&#22;&#1;f0446&#31;reute
f f BC-Sept-daily-ave-primar   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> Sept daily ave primary aluminium output 34,900 tonnes, up 400 tonnes, IPAI.
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20651" NEWID="20056">
<DATE>20-OCT-1987 06:14:40.08</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0447&#31;reute
f f BC-Blue-Arrow-says-Conse   10-20 0012</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Blue Arrow says Conservative Party Chairman Norman Tebbit to join board
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20652" NEWID="20057">
<DATE>20-OCT-1987 06:18:31.24</DATE>
<TOPICS></TOPICS>
<PLACES><D>south-korea</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0462&#31;reute
u f BC-SAMSUNG-BOND-GOES-CON   10-20 0118</UNKNOWN>
<TEXT>&#2;
<TITLE>SAMSUNG BOND GOES CONVERTIBLE BUT NO SHARE DEMAND</TITLE>
<DATELINE>    SEOUL, Oct 20 - </DATELINE><BODY>The first convertible bond issued by a
South Korean firm overseas -- by Samsung Electronics Co Ltd
&lt;SAMS.SE> -- became eligible for conversion but there was no
demand for shares as the government still bans direct share
ownership by foreigners, a Samsung official said.
    "There was no demand from holders, so the lead managers made
no approach to us to issue shares," the official said.
    The five pct bond, co-lead managed by S.G. Warburg and
Goldman Sachs Co, raised 20 mln dlrs when issued in 1985. The
only other Korean convertible bonds were issued by Daewoo Heavy
Industries Ltd &lt;DAEW.SE> and &lt;Yukong Ltd>, both in 1986.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20653" NEWID="20058">
<DATE>20-OCT-1987 06:20:40.59</DATE>
<TOPICS><D>alum</D></TOPICS>
<PLACES><D>uk</D><D>brazil</D><D>cuba</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;M 
&#22;&#22;&#1;f0470&#31;reute
r f BC-GROUNDED-BRITISH-BAUX   10-20 0060</UNKNOWN>
<TEXT>&#2;
<TITLE>GROUNDED BRITISH BAUXITE VESSEL REFLOATED IN ORINOCO</TITLE>
<DATELINE>    LONDON, Oct 20 - </DATELINE><BODY>The British bulk carrier Envoy, which ran
aground in the Orinoco river on October 16, was refloated
without lightening on October 19, Lloyds Shipping Intelligence
service said.
    The Envoy, 75,453 tonnes dw, was carrying a cargo of 50,000
tonnes of bauxite from Brazil to Cuba.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20654" NEWID="20059">
<DATE>20-OCT-1987 06:21:43.60</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES><D>zse</D></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0472&#31;reute
f f BC-Swiss-Stock-Index-fal   10-20 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Swiss Stock Index falls 3.7 pct or 38.4 points at opening to 989.5 - official
</TITLE>Blah blah blah.
&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20655" NEWID="20060">
<DATE>20-OCT-1987 06:27:57.36</DATE>
<TOPICS></TOPICS>
<PLACES><D>austria</D><D>usa</D><D>ussr</D><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS><D>ec</D></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;Y 
&#22;&#22;&#1;f0483&#31;reute
u f BC-EAST,-WEST-APPROVE-NU   10-20 0118</UNKNOWN>
<TEXT>&#2;
<TITLE>EAST, WEST APPROVE NUCLEAR FUSION ENERGY PROJECT</TITLE>
<DATELINE>    VIENNA, Oct 20 - </DATELINE><BODY>East and West on Monday decided to go
ahead with an ambitious nuclear fusion project billed as
possibly providing an inexhaustible source of energy, the
International Atomic Energy Agency (IAEA) said.
    Representatives of the U.S., The Soviet Union, the European
Community and Japan agreed to develop plans for a revolutionary
thermonuclear reactor, to produce energy not from splitting
atoms as in today's nuclear plants, but by joining them.
    Work is due to begin next year at the Institute for Plasma
Physics at the Max Planck Foundation near Munich, West Germany,
and is scheduled for completion by 1990, an IAEA statement
said.
    Research into fusion's scientific feasibility has been
under way for many years but the project approved on Monday,
known as International Thremonuclear Experimental Reactor
(ITER) will study if an actual plant could be built.
    The project represents an unprecedented display of
East-West scientific cooperation, but a decision will not be
made until its completion on whether an actual reactor would be
jointly constructed or by individual participant countries.
    Dieter Sigmar, a leading U.S. Fusion researcher, said last
month that the development of a demonstration plant would cost
several billion dlrs and need at least another 10 years.
    Fusion plants would produce little radioactive waste.
    While today's nuclear power plants need uranium, mined in
only a few countries and producing dangerous waste, fusion
plants would eventually run only on deuterium, an element
related to hydrogen and available from almost limitless
supplies of sea water, according to experts.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="20656" NEWID="20061">
<DATE>20-OCT-1987 06:28:03.88</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE><D>takeshita</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f0484&#31;reute
u f BC-TAKESHITA-FACES-TOUGH   10-20 0098</UNKNOWN>
<TEXT>&#2;
<TITLE>TAKESHITA FACES TOUGH ECONOMIC MANAGEMENT JOB</TITLE>
<AUTHOR>    By Tsukasa Maekawa</AUTHOR>
<DATELINE>    TOKYO, Oct 20 - </DATELINE><BODY>Former Finance Minister Noboru Takeshita,
chosen on Monday to be Japan's next prime minister, will face a
tough test in managing Japan's economy from the very start of
his two-year term, economists and businessmen said.
    Takeshita told a news conference on Tuesday that he would
do his best to continue the domestic reforms and external
policies of Prime Minister Yasuhiro Nakasone.
    However, leading Japanese businessmen called on Takeshita
to outdo Nakasone by showing stronger leadership.
    "Takeshita should not merely follow the Nakasone policies
but should cope with mounting economic issues with a new vision
and policies," Takashi Ishihara, chairman of the Japan Committee
for Economic Development, said in a statement.
    Economists generally agreed that there will be no major
changes in Japan's economic policies under a new leader.
    However, expectations are high among major industries for
new initiatives by Takeshita for immediate and effective
measures to solve economic problems such as trade friction with
the U.S., Administrative and tax reforms, and soaring land
prices.
    Eishiro Saito, chairman of the Federation of Economic
Organisations (Keidanren), urged Takeshita to succeed in
unifying the ruling Liberal Democratic Party as soon as
possible to tackle difficult tasks.
    Regarding foreign economic polices, Yoshitoki Chino,
chairman of the Japan Securities Dealers Association, said
Takeshita should come up with economic measures well before
economic issues develop into problems.
    Behind those calls on Takeshita for prompt action are
doubts about his capability in handling international issues
due to his lack of experience in diplomacy, economists said.
     Economists said foreign countries should be patient with
Takeshita, who is widely known as an ultra-cautious politician.
    Takeshita has repeatedly said, "There should be consensus
before taking action."
    Takeshita has so far failed to unveil specific measures to
reduce Japan's huge trade surplus, economists said.
    He has said Japan will continue to stimulate the economy
and to open the market wider to foreign products.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>


