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<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6837" NEWID="19001">
<DATE>18-JUN-1987 18:46:13.14</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f4966&#31;reute
u f BC-BEVERLY-HILLS-COP-II   06-18 0074</UNKNOWN>
<TEXT>&#2;
<TITLE>BEVERLY HILLS COP II TOPS 100 MLN AT BOX OFFICE</TITLE>
<DATELINE>    NEW YORK, June 18 - </DATELINE><BODY>Gulf and Western Inc's &lt;GW> Paramount
Pictures Corp division said its movie "Beverly Hills Cop II"
has topped the 100 mln dlr mark at the box office on the 29th
day of its North American release.
    Paramount said the the movie has become the fastest movie
to hit the 100 mln dlr mark with an "R" rating, which means
that anyone under 17 must be accompanied by their parents.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6838" NEWID="19002">
<DATE>18-JUN-1987 18:46:33.73</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f4968&#31;reute
s f BC-TRANSAMERICA-CORP-&lt;TA   06-18 0022</UNKNOWN>
<TEXT>&#2;
<TITLE>TRANSAMERICA CORP &lt;TA> QUARTERLY DIVIDEND</TITLE>
<DATELINE>    SAN FRANCISCO, June 18 -
    </DATELINE><BODY>Qtly div 44 cts vs 44 cts
    Pay July 31
    Record July 3
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6839" NEWID="19003">
<DATE>18-JUN-1987 18:48:35.56</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F A 
&#22;&#22;&#1;f4972&#31;reute
d f AM-POLICY   06-18 0078</UNKNOWN>
<TEXT>&#2;
<TITLE>U.S. HOUSE CALLS HIGHER JAPAN DEFENSE SPENDING</TITLE>
<DATELINE>    WASHINGTON, June 18 - </DATELINE><BODY>The House today supported a call for
Japan to boost its defense spending to help share the burden of
protecting Western interests in sensitive areas around the
world, including in the Gulf.
    House member approved a measure that would require
Secretary of State George Shultz to enter into talks with Japan
on increasing Japanese defense spending to at least 3 pct of
its gross national product.
    The measure, passed during consideration of the 1988-89
State Department funding bill would not require an increase,
but legislators called on Japan to spend more on defense. The
Senate must approve the measure before it becomes law.
    "We don't have to bash the Japanese. We have to show them
how to share the burden of the defense of the free world," said
Rep. Robert Dornan, a California Republican.
    The amendment calls on Shultz to enter into talks with
Japan with the aim of reaching agreement on one of two
alternatives: either Japan can spend 3 pct of its GNP on
defense by itself or give the equivalent amount of money to the
United States as a kind of security fee.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6840" NEWID="19004">
<DATE>18-JUN-1987 18:55:48.68</DATE>
<TOPICS><D>gnp</D></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS><D>oecd</D></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f4988&#31;reute
f f BC-OECD-SEES-1.5-PCT-WES   06-18 0010</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE> OECD SEES 1.5 PCT WEST GERMAN REAL GNP GROWTH IN 1987
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6841" NEWID="19005">
<DATE>18-JUN-1987 18:56:07.09</DATE>
<TOPICS><D>gnp</D><D>cpi</D><D>bop</D></TOPICS>
<PLACES><D>france</D><D>australia</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS><D>oecd</D></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f4990&#31;reute
u f BC-AUSTRALIA-SET-TO-GROW   06-18 0117</UNKNOWN>
<TEXT>&#2;
<TITLE>AUSTRALIA SET TO GROW, BUT UNEMPLOYMENT MAY RISE</TITLE>
<DATELINE>    PARIS, June 19 - </DATELINE><BODY>Australia's economy should manage modest
growth over the next two years after a sharp slowdown but
unemployment could still edge upwards, the Organisation for
Economic Cooperation and Development (OECD) said.
    The organisation's latest half-yearly report says Gross
Domestic Product will grow by 2.5 pct this year and by 2.75 pct
in 1988 compared with only 1.4 pct in 1986. The growth will be
helped by higher stockbuilding and stronger domestic demand
following tax cuts and higher real wages, it added.
    The report forecasts a decline in inflation, with consumer
prices increasing by 8.5 pct this year and 6.25 pct in 1988.
    The current account deficit shows signs of easing slightly
and could narrow to 12 billion dlrs by the end of 1988.
    While predicting slightly stronger growth than last year,
however, the report revises downwards the OECD's earlier growth
forecast for 1987 of 3.75 pct.
    The OECD predicts a similar combination of modest economic
growth and rising unemployment for New Zealand, which is
struggling to recover from a major economic crisis.
    The country's GDP, which contracted by 0.6 pct last year,
should again show growth over the next two years, rising by
0.25 pct this year and a more substantial 2.75 pct in 1988.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6842" NEWID="19006">
<DATE>18-JUN-1987 19:03:26.58</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f4996&#31;reute
u f BC-/SQUIBB-&lt;SQB>-SAID-NO   06-18 0104</UNKNOWN>
<TEXT>&#2;
<TITLE>SQUIBB &lt;SQB> SAID NOT INTERESTED IN BUYING CETUS</TITLE>
<AUTHOR>    BY MARJORIE SHAFFER, REUTERS</AUTHOR>
<DATELINE>    NEW YORK, June 18 - </DATELINE><BODY>Robert Fildes, president and chief
executive of Cetus Corp &lt;CTUS.O>, told Reuters that Squibb Corp
is not interested in buying Cetus.
    Earlier the companies said Squibb would buy from Cetus a
five pct equity postion in Cetus for about 40 mln dlrs.
    "This is not an attempt by Squibb to become a major
majority holder in Cetus," Fildes told Reuters in an interview.
"Squibb has not approached us with any indication that they
want to acquire us and we wouldn't be interested in that kind
of arrangement," said Fildes.
    Squibb could not be reached to comment on the late comments
by Fildes.
    Squibb is Cetus' first pharmaceutical partner and the only
one to own an equity position in Cetus. Eastman Kodak Co &lt;EK>
and W.R. Grace &lt;WR> both have joint ventures with Cetus, but
neither owns an equity position in the company, said Fildes.
    Cetus has a venture with Kodak to develp diagnostic
products and with Grace to develop agricultural products.
    Earlier, Squibb and Cetus announced in a joint statement 
an agreement in principle to form a joint venture to develop
new biotechnology products in several fields.
   
    As part of the deal Squibb will license several of Cetus'
anticancer agents, including interleukin-2, in development.
Squibb will sell the drugs only in Japan and other markets but
not in North American and Western Europe.
    "We wouldn't have done this deal had it not been understood
that Cetus wants to build its own fully integrated business in
North America and Europe," said Fildes.
    He said Squibb was the good partner because Squibb has a
major joint venture in Japan and has sales capabilities of its
own in that market.
   
    Fildes said Cetus has shunned licensing arrangements with
pharmaceutical companies because it wanted to build its own
business. Many large corporations have invested in small
biotech firms.
    But Squibb's investment in Cetus is the first it has made
in biotechnology. Fildes said that was attractive to Cetus
because it wanted a partner that didn't have a relationship
with a large number of other biotechnology companies."
   
    Fildes said his strategy was to have partners in non drug
areas like diagnostics and agriculture, but to "keep the
biggest developments in anticancer drugs to ourselves."
    Fildes said the partnership with Squibb would be used to
broaden the company's reach in such big money making areas
as the cardiovascular, anti-infective and the anti-inflammatory
markets.
    Squibb is also investming 75 mln dlrs in Cetus' research
over the next five years.
   
    "Squibb is putting up over 75 mln dlrs in research and
development to make it happen, while the equity position part
of the package is simply to demonstrate the seriousness of this
partnership," said Fildes.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6843" NEWID="19007">
<DATE>18-JUN-1987 19:44:15.31</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5022&#31;reute
b f BC-NBC-SAYS-IT-WILL-IMPL   06-18 0116</UNKNOWN>
<TEXT>&#2;
<TITLE>NBC SAYS IT WILL IMPLEMENT CONTRACT JUNE 29</TITLE>
<DATELINE>    NEW YORK, June 29 - </DATELINE><BODY>The National Broadcasting Co, a unit of
General Electric Co &lt;GE>, said it intends to implement on June
29 a labor contract rejected by union represenatives.
    A spokesman for the National Association of Broadcast
Employees and Technicians, represening 2,800 workers, said its
negotiating committee adopted a formal resolution today stating
it will inform NBC it will strike upon implementation.
    "The union will have to decide what action it thinks is
appropriate," said Day Krolik, NBC's vice president for labor
relations. A union spokesman said NBC has until the day of
implemetation to peacefully negotiate a contract.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6844" NEWID="19008">
<DATE>18-JUN-1987 19:50:03.10</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5025&#31;reute
u f BC-FORMER-SHEARSON-&lt;SHE>   06-18 0099</UNKNOWN>
<TEXT>&#2;
<TITLE>FORMER SHEARSON &lt;SHE> OFFICIAL PLEADS GUILTY</TITLE>
<DATELINE>    NEW YORK, June 18 - </DATELINE><BODY>Mark Stahl, 45, who was a former senior
vice president of Shearson Lehman Brothers, until his
suspension on April 16, today admitted in U.S. District court
here, embezzling almost 19 mln dlrs from his firm over the past
year.
    He entered a guilty plea before United States District
Court Judge Vincent Broderick to four specific charges totaling
1,031,000 dlrs on wire fraud.
    Stahl, who was a senior vice president for finance, told
the judge that the total embezzlement amounted to "a little
less than" 19 mln dlrs.
   
    Through an attorney, Stahl agreed to make restitution to
Shearson Lehman of all the embezzled funds if possible. However
his guilty pleas today to the four counts will cover all
criminal liability of the embezzlement that occurred between
April 1986 to last April.
    Judge Broderick scheduled sentencing for December nine.
    Stahl faces a maximum sentence of 20 years in jail and one
mln dlrs in fines, or both.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6845" NEWID="19009">
<DATE>18-JUN-1987 19:53:55.04</DATE>
<TOPICS><D>earn</D></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5027&#31;reute
u f BC-TRI-STAR-PICTURES-INC   06-18 0083</UNKNOWN>
<TEXT>&#2;
<TITLE>TRI-STAR PICTURES INC &lt;TRSP.O> 1ST QTR MAY 31</TITLE>
<DATELINE>    NEW YORK, June 18 -
    </DATELINE><BODY>Shr four cts vs four cts
    Net 1,180,000 vs 902,000
    Revs 146.9 mln vs 37.0 mln
    Avg shrs 33 mln vs 23.9 mln
    NOTE: Company changed its fiscal year from December 31 to
the last day of February, thus results of operations for the
year-ago period have been restated to reflect this change.
    Current first quarter includes results of operations of
Loews Theatre Management Corp which Tri-Star acquired December
31.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6846" NEWID="19010">
<DATE>18-JUN-1987 20:07:05.93</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;E F RM 
&#22;&#22;&#1;f5035&#31;reute
f f BC-CANADA-BUDGET-DEFICIT   06-18 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>CANADA BUDGET DEFICIT DECLINE TO SLOW IN LATE 1980S -
OFFICIAL           
 Reuter
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6847" NEWID="19011">
<DATE>18-JUN-1987 20:07:10.18</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V RM E 
&#22;&#22;&#1;f5036&#31;reute
f f BC-CANADA-UPS-CORPORATE   06-18 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>CANADA LIFTS CORPORATE TAX REVENUES BY FIVE BILLION DLRS
OVER FIVE YEARS - OFFICIAL
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6848" NEWID="19012">
<DATE>18-JUN-1987 20:07:45.08</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;E F RM 
&#22;&#22;&#1;f5037&#31;reute
f f BC-WILSON-CUTS-PERSONAL   06-18 0011</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>WILSON CUTS PERSONAL TAX RATES, LIMITS CAPITAL GAINS
EXEMPTIONS
 Reuter
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6849" NEWID="19013">
<DATE>18-JUN-1987 20:08:00.01</DATE>
<TOPICS></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V RM E 
&#22;&#22;&#1;f5038&#31;reute
f f BC-CANADA-UPS-FINANCIAL   06-18 0015</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>CANADA LIFTS FINANCIAL INSTITUTION AVERAGE TAX RATE TO
21.3 PCT FROM 14.5 PCT - OFFICIAL
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6850" NEWID="19014">
<DATE>18-JUN-1987 20:12:23.11</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5040&#31;reute
u f BC-WILSON-TO-HIKE-CORPOR   06-18 0085</UNKNOWN>
<TEXT>&#2;
<TITLE>CANADA TO INCREASE CORPORATE TAX REVENUES</TITLE>
<DATELINE>     OTTAWA, June 18 - </DATELINE><BODY>Canada will increase corporate tax
revenues by about five billion dlrs over the next five years by
broadening the tax base and allowing fewer exemptions, finance
minister Michael Wilson said.
     As Wilson previously promised, he said corporations will
bear an increased tax burden, despite new measures to lower
overall tax rates.
     Increased corporate revenues will result from broadening
the tax base and eliminating special tax exemptions.
     "The jobs of many Canadians depend on a corporate income
tax system that is competitive with other countries,
particularly the United States," Wilson said in a prepared
speech to the House of Commons.
     "And it (tax reform) will ensure that profitable
corporations carry a bigger share of the total tax burden," he
added.
     Federal tax revenue from corporations will increase by 470
mln dlrs in the fiscal year ending March 31, 1988, 410 mln dlrs
in fiscal 1989 and 1.19 billion dlrs in fiscal 1990, according
to documents tabled with Wilson's speech.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6851" NEWID="19015">
<DATE>18-JUN-1987 20:15:24.21</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5041&#31;reute
u f BC-CANADA-FINANCIAL-TAX   06-18 0074</UNKNOWN>
<TEXT>&#2;
<TITLE>CANADA FINANCIAL TAX RATE INCREASED</TITLE>
<DATELINE>     OTTAWA, June 18 - </DATELINE><BODY>The average tax rate for Canadian
financial insitutions will increase to 21.3 pct from 14.5 pct
under the new tax reform package, the federal finance
department said.
     The amount of financial institutions' income that is taxed
will also increase to 74.0 pct from 48.7 pct, it said in
documents tabled with finance minister Michael Wilson's
prepared speech to the House of Commons.
     Under Wilson's plan, the federal government will collect
1.36 billion dlrs more over the next five years from financial
insitutions, including banks, trust mortgage and life insurance
companies, according to finance department documents.
     Financial institutions "are going to complain, but we
believe the changes are appropriate and affordable," said one
finance department official who asked not to be identified.
     Ottawa will collect more revenue from financial
institutions by reducing the amount of reserves they can deduct
from taxes, which "will broaden the tax base for this low tax
paying sector," the finance department said.
     Among the changes, chartered banks will no longer be able
to use a five-year averaging formula to calculate loan losses
that may be deducted for tax purposes.
     Effective June 17, 1987, banks will deduct bad or doubtful
loans during the year they are incurred.
     The finance department said the impact of the new
provisions will be cushioned over a period of five years.
     The changes are needed to ensure that all financial
companies are taxed fairly under deregulation of the financial
services industry.
     "It would be inconsistent for the tax system to continue
to provide different reserves for tax purposes for institutions
competing in the same marketplace," the finance department
said.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6852" NEWID="19016">
<DATE>18-JUN-1987 20:20:39.69</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5048&#31;reute
u f BC-OTTAWA-WIDENS-SALES-T   06-18 0089</UNKNOWN>
<TEXT>&#2;
<TITLE>OTTAWA WIDENS SALES TAX, STUDIES REPLACEMENT</TITLE>
<DATELINE>     OTTAWA, June 18 - </DATELINE><BODY>Canada will broaden a federal sales tax
levied on manufacturers before scrapping the system in favor of
a broad based, multi-staged sales tax, finance minister Michael
Wilson said.
     As expected, Wilson did not include a new sales tax system
as part of his wide-ranging tax reforms tabled in the House of
Commons today.
    Instead, the federal government will make interim changes
to the existing sales tax to make it more fair for low and
middle income Canadians.
    "The present (sales) tax is fundamentally flawed. It is a
hidden, arbitrary and capricious tax," Wilson told the House of
Commons.
    The existing federal sales tax system hurts the Canadian
economy by putting more tax on Canadian produced goods than
imported goods and adding a hidden tax on Canadian exports that
makes them less competitive, Wilson said.
     Interim changes effective January 1, 1988 will include:
     -- applying the federal sales tax to marketing companies
related to manufacturers
     -- levying the tax at the wholesale level instead of the
manufacturer for a selected range of products
     -- applying a 10 pct sales tax to telecommunication
services, except for residential telephone lines
     -- quicker collection of federal sales taxes.
     To offset these changes for low income Canadians,
refundable tax credits will be increased to 70 dlrs from 50
dlrs for adults and to 35 dlrs from 25 dlrs for children, the
finance department said.
     Ottawa is considering three alternative forms for a new
sales tax, including a goods and services tax, a value added
tax and a national sales tax that would combine existing
federal and provincial levies into one system, Wilson told the
House of Commons.
     He said the federal government will explore the
possibility of one national sales tax with Canada's 10
provincial governments. All provinces except Albeta now levy a
provincial sales of tax of varying amounts.
     Wilson said one joint system would be simpler for
taxpayers and maximize economic benefits of tax reform.
     If Ottawa and the provinces can't agree on a national
sales tax system, Wilson said the federal government will
consider either a goods and services tax or a value-added tax.
     A goods and services tax would apply at one rate to
virtually all goods and services in Canada and would include
further increases in refundable tax credits for low and middle
income Canadians, the finance department said in documents
accompanying Wilson's speech.
     A federal value-added tax, similar to European tax
systems, would also be broad based but would allow more
flexibility to exempt selected goods and services, the
department said. The finance deparment said the main drawback
of a value added tax is that it would be more complex and
costly to implement than the other two proposals.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6853" NEWID="19017">
<DATE>18-JUN-1987 20:28:39.01</DATE>
<TOPICS><D>gnp</D></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5055&#31;reute
u f BC-CANADIAN-BUDGET-DEFIC   06-18 0088</UNKNOWN>
<TEXT>&#2;
<TITLE>FALL IN CANADIAN BUDGET DEFICIT TO SLOW</TITLE>
<DATELINE>    OTTAWA, June 18 - </DATELINE><BODY>Finance Minister Michael Wilson said tax
reform will not affect his determination to reign in
expenditures, but his forecasts show a slowing of the decline
in the budget deficit in the late 1980s.
    "Responsible tax reform must be fiscally responsible,"
Wilson said in a speech prepared for the House of Commons.
    Wilson estimated the deficit will fall to 29.3 billion dlrs
in the year ending March 31, 1988, the same level as he
forecast in the February budget.
    And in the year ended this past March, the deficit was
expected to have been one billion dlrs lower than the 32
billion dlr shortfall originally forecast, Wilson said.
    Wilson said in the current 1988 fiscal year
higher-than-anticipated spending, particularly in farm income
support programs, will be offset by higher-than-anticipated
revenues.
    But finance department documents show the pace of deficit
reduction was expected to slow temporarily in fiscal 1989 and
1990 as a result of lower oil and grain prices and the
transition to the reformed taxation system.
    The deficit is expected to total 28.9 billion dlrs in
fiscal 1989 and 28.6 billion dlrs in 1989 and then fall to 26.1
billion dlrs in 1991.
    Wilson was optimistic about the outlook for the Canadian
economy, forcasting gross domestic product would expand 2.8 pct
this year and 3.0 pct in 1988. In 1986 the economy grew by an
actual 3.1 pct.
    Inflation, meanwhile, is expected to stabilize at around
the current four pct level over the next two years.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6854" NEWID="19018">
<DATE>18-JUN-1987 20:33:47.78</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5060&#31;reute
u f BC-CANADA'S-WILSON-SETS   06-18 0106</UNKNOWN>
<TEXT>&#2;
<TITLE>CANADA'S WILSON SETS NEW PREFERRED SHARE TAX</TITLE>
<DATELINE>    OTTAWA, June 18 - </DATELINE><BODY>Finance Minister Michael Wilson tabled a
ways and means motion to immediately impose a special tax on
preferred share dividends to eliminate a significant loss of
corporate tax revenue.
    Under the motion, which is used to introduce most financial
tax changes, dividends on all preferred shares issued after
June 18 will be taxable.
    The issuing corporation will be able to choose between two
forms of tax, one that imposes a 25 pct tax on dividends with a
subsequent additional 10 pct tax paid by the shareholder, and
one that imposes a flat 40 pct tax on dividends.
    "Measures to reduce the tax advantages of after-tax
financing arrangements using preferred shares are a critical
step in achieving the broadened corporate tax base required to
fund personal income tax reductions," Wilson explained.
    The minister said many profitable corporations, using
various deductions built up over the years, pay no taxes,
although they are in a position to pay dividends out of their
profits.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6855" NEWID="19019">
<DATE>18-JUN-1987 20:35:36.77</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE><D>wilson</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;V E RM 
&#22;&#22;&#1;f5063&#31;reute
u f BC-CANADA-SETS-WIDE-RANG   06-18 0089</UNKNOWN>
<TEXT>&#2;
<TITLE>CANADA SETS WIDE-RANGING PERSONAL TAX CHANGES</TITLE>
<DATELINE>    OTTAWA, June 18 - </DATELINE><BODY>Finance Minister Michael Wilson unveiled
a wide-ranging reform of the personal tax system that includes
limiting the capital gains exemption and a sharp cut in the
dividend tax credit.
    With most changes effective at the first of next year,
Wilson also announced he was cutting the number of tax brackets
from 10 to three.
    He said the changes will cut personal tax revenues by two
billion dlrs in 1988 and by more than 11 billion dlrs over the
next five years.
    "Most Canadians will pay lower taxes because of two
far-reaching changes. A new structure of federal income tax
rates and the conversion of exemptions and deductions to tax
credits," Wilson told the House of Commons.
    The new tax brackets will be 17 pct on the first 27,500
dlrs of taxable income, 26 pct on the next 27,500 dlrs and 29
pct on taxable income in excess of 55,000 dlrs. The maximum tax
rate is 34 pct under the current system.
    In a major reversal of his own initiative, Wilson said the
controversial 500,000 dlrs capital gains exemption will be
reduced to 100,000 dlrs over an investors' lifetime.
    Wilson introduced the exemption shortly after taking office
in 1984 as a a way of stimulating investment, but it was
sharply criticized by the opposition as over-generous to
wealthy investors.
    The 500,000 dlr lifetime exemption  will be kept on the
sale of farm land and for small businesess, however.
    Also, the taxable portion of a capital gain will increase
from 50 pct currently to 66-2/3 pct in 1988 and 75 pct in 1990.
    The dividend tax credit will be reduced from 33-1/3 pct to
25 pct and the deduction for up to 1,000 dlrs of interest and
dividend income will be eliminated in 1988.
    Wilson said tax treatment for registered retirement savings
plan contributions will be maintained but the phase in of the
increase in the maximum limit to 15,500 dlrs will be delayed 
four years to 1994.
 Reuter
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6856" NEWID="19020">
<DATE>18-JUN-1987 20:48:32.87</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM 
&#22;&#22;&#1;f5072&#31;reute
f f BC-ANZ-BANKING-GROUP-SAY   06-18 0014</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>ANZ BANKING GROUP SAYS IT WILL CUT PRIME RATE TO 16.00
PCT FROM 16.50 ON JUNE 22
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6857" NEWID="19021">
<DATE>18-JUN-1987 21:07:33.30</DATE>
<TOPICS><D>money-fx</D><D>dlr</D></TOPICS>
<PLACES></PLACES>
<PEOPLE><D>miyazawa</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5083&#31;reute
f f BC-Japan-still-asking-in   06-18 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Japan still asking institutions to limit speculative dlr
deals - Miyazawa
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6858" NEWID="19022">
<DATE>18-JUN-1987 21:09:30.49</DATE>
<TOPICS><D>interest</D></TOPICS>
<PLACES><D>australia</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5084&#31;reute
b f BC-ANZ-BANKING-GROUP-CUT   06-18 0092</UNKNOWN>
<TEXT>&#2;
<TITLE>ANZ BANKING GROUP CUTS PRIME RATE TO 16.00 PCT</TITLE>
<DATELINE>    MELBOURNE, June 19 - </DATELINE><BODY>The Australia and New Zealand Banking
Group Ltd &lt;ANZA.S> said it will cut its prime rate to 16.00 pct
from 16.50, effective June 22.
    The cut takes the ANZ's prime to the lower end of the range
of prime rates being offered by Australian trading banks. The
highest rate is 17.50 pct.
    The cut follows announcements of cuts yesterday by
&lt;Citibank Ltd> to 16.00 pct from 16.5, effective today, and
&lt;Commonwealth Bank of Australia> to 15.75 pct from 16.25,
effective June 24.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6859" NEWID="19023">
<DATE>18-JUN-1987 21:15:11.47</DATE>
<TOPICS><D>money-fx</D><D>dlr</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE><D>miyazawa</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5087&#31;reute
b f BC-JAPAN-STILL-WANTS-SPE   06-18 0069</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN STILL WANTS SPECULATIVE DLR DEALS LIMITED</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>The Finance Ministry is still asking
financial institutions to limit speculative dollar dealings,
Finance Minister Kiichi Miyazawa told reporters.
    He was responding to rumours in the New York currency
market overnight that the Ministry was reducing its pressure on
institutions to refrain from excessively speculative dollar
dealings.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6860" NEWID="19024">
<DATE>18-JUN-1987 21:32:28.55</DATE>
<TOPICS></TOPICS>
<PLACES><D>india</D></PLACES>
<PEOPLE><D>gandhi</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f5094&#31;reute
u f BC-GANDHI-PARTY-BADLY-DE   06-18 0108</UNKNOWN>
<TEXT>&#2;
<TITLE>GANDHI PARTY BADLY DEFEATED IN INDIA STATE POLL</TITLE>
<DATELINE>    NEW DELHI, June 19 - </DATELINE><BODY>Prime Minister Rajiv Gandhi's Congress
(I) party was swept from power in the northern state of Haryana
by an opposition landslide.
    The loss was a major personal setback for Gandhi whose
vote-winning ability was on trial after political scandals in
Delhi and a string of electoral losses since he took command of
the party in 1984.
    With 53 results in for Haryana's 90-seat assembly, Congress
had won only two seats against 63 previously. Before the poll,
Congress politicians in Delhi said privately that a loss in
Haryana could open a party leadership debate.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6861" NEWID="19025">
<DATE>18-JUN-1987 21:34:55.99</DATE>
<TOPICS></TOPICS>
<PLACES><D>south-korea</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f5096&#31;reute
u f BC-SOUTH-KOREA-THREATENS   06-18 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>SOUTH KOREA THREATENS EMERGENCY MEASURES</TITLE>
<DATELINE>    SEOUL, June 19 - </DATELINE><BODY>The government will take emergency
measures if the present wave of violent protest demonstrations
continues, state radio said.
    The radio, which did not specify the measures, said the
decision was taken today at a meeting of top ministers and
security officials attended by Prime Minister Lee Han-key. It
said a special statement would be made shortly.
    Thousands of demonstrators took to the streets of Seoul and
other cities yesterday, battling riot police and demanding the
resignation of President Chun Doo Hwan. It was the ninth
successive day of violent protests.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6862" NEWID="19026">
<DATE>18-JUN-1987 21:56:40.46</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5107&#31;reute
r f BC-COURT-ORDERS-INT'L-ME   06-18 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>COURT ORDERS INT'L MEDICAL INSURER TO SHOW CAUSE</TITLE>
<DATELINE>    TALLAHASSEE, Fla., June 18 - </DATELINE><BODY>A Circuit Court judge ordered
the company that insured the solvency of International Medical
Centres Inc to show cause why it should not honour its contract
with International, according to Florida's Department of
Insurance, which had filed a petition on the matter.
    As previously reported, International, the largest health
maintenance organisation in Florida was declared insolvent on
May 14. Federal regulators had also told the company its
Medicare contract would be terminated on July 31 because of the
company's financial and management problems.
    Michelle McLawhorn, Florida Department spokeswoman, said
International's insurer, State Mutual Life Assurance Co of
America, had made clear it would fight activation of the policy
because International did not provide it with accurate
financial records. State Mutual could not be reached for
comment.
    McLawhorn said it was not yet known how many creditors
International had or how big its debt was. The court gave State
Mutual 20 days to show why it should not be obliged to pay
claims against the solvency policy.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6863" NEWID="19027">
<DATE>18-JUN-1987 22:26:37.58</DATE>
<TOPICS></TOPICS>
<PLACES><D>brazil</D></PLACES>
<PEOPLE><D>sarney</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5137&#31;reute
u f BC-BRAZIL-RULING-PARTY-T   06-18 0101</UNKNOWN>
<TEXT>&#2;
<TITLE>BRAZIL RULING PARTY TO DECIDE ON PRESIDENTIAL TERM</TITLE>
<DATELINE>    BRASILIA, June 18 - </DATELINE><BODY>The ruling Brazilian Democratic
Movement Party (PMDB) will hold a national convention on July
18 and 19 to discuss the length of the Presidential term, a
PMDB spokesman said.
    Although the country's constitution allows for a six-year
term, Sarney said he would remain only five years after he came
to power in 1984.
    The Constituent Assembly is drawing up a new constitution
and severe economic problems have increased the pressure on it
to call early elections. A faction of the PMDB favours a poll
in November next year.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6864" NEWID="19028">
<DATE>18-JUN-1987 22:33:01.85</DATE>
<TOPICS><D>money-supply</D><D>money-fx</D><D>dlr</D></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5141&#31;reute
u f BC-FED-DATA-SUGGEST-NO-C   06-18 0086</UNKNOWN>
<TEXT>&#2;
<TITLE>FED DATA SUGGEST NO CHANGE IN MONETARY POLICY</TITLE>
<AUTHOR>    By Kathleen Hays, Reuters</AUTHOR>
<DATELINE>    NEW YORK, June 18 - </DATELINE><BODY>New U.S. Banking data suggest the
Federal Reserve is guiding monetary policy along a steady path
and is not signalling any imminent change of course, economists
said.
    But they also said that if money supply growth remains
weak, as this week's unexpected eight billion dlr M-1 decline
suggests it may, this could influence the Fed to loosen its
credit reins and move toward a more accommodative monetary
policy.
    A Reuter survey of 17 money market economists produced a
forecast of a 600 mln dlr M-1 decline for the week ended June
8, with estimates ranging from a gain of one billion dlrs to a
decline of four billion. Instead, M-1 fell eight billion dlrs
to 745.7 billion dlrs at a seasonally adjusted annual rate.
    Coming on the heels of a 4.3 billion decrease in M-1 for
the week ended June 1, this means the nation's money supply has
fallen more than 12 billion dlrs in the past two weeks,
economists said.
    "M-1 has hit an air pocket of weakness," said Bill Sullivan
of Dean Witter Reynolds Inc.
    While M-1 may have lost its significance as an indicator of
economic growth, Sullivan said Fed officials might be concerned
the latest drop in M-1 means another month of sluggish growth
in the broader monetary aggregates, M-2 and M-3, which are seen
as better gauges of economic growth.
    Latest monthly M-2 and M-3 data showed that as of May, both
measures were growing at rates below the bottom of the Fed's
5-1/2 to 8-1/2 pct target ranges.
    If money growth does not accelerate, Fed officials,
concerned that this indicates economic growth is flagging,
could turn toward easier monetary policy, economists said.
    "Does this mean that the Fed abandons its current open
market position? No," Sullivan said. "But does this mean the end
of tightening for the time being? Definitely yes."
    Economists said average adjusted discount window borrowings
of 385 mln dlrs for the latest two-week bank statement period
were lower than they had expected. Most believed the Fed had
targetted a two-week borrowings average of around 500 mln dlrs.
    But they said that if it had not been for a large one-day
net miss in the Fed's reserve projections, the higher
borrowings target would probably have been reached.
    A drop in May U.S. Housing starts and continued weakness in
auto sales show key sectors of the U.S. Economy are lagging,
while a recent modest 0.3 pct gain in May producer prices has
helped dispel inflation fears, Slifer said.
    "If this continues, we can entertain the notion of Fed
easing at some point," he said.
    Other economists said the Fed would probably pay little
attention to weak money supply growth. "It has been a number of
years since M-1 has given good signs of what's going on in the
economy," one said. "I don't think M-1 shows that the economy is
falling apart and the Fed should ease."
    Economists agreed a stable dollar will continue to be a
prerequisite for any move by the Fed toward easier monetary
policy.
    They said the Fed is reluctant to lower short-term rates
for fear this would spur expectations of a weaker dollar and
higher inflation which would push up long-term yields and choke
off econmomic growth.
    But Sullivan said the dollar has been steady since late
April. "The Fed has to determine if this represents a
fundamental change for the dollar. If it does, then this gives
them more room to ease," he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6865" NEWID="19029">
<DATE>18-JUN-1987 22:34:58.79</DATE>
<TOPICS><D>earn</D></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5142&#31;reute
b f BC-NATIONAL-SEMICONDUCTO   06-18 0067</UNKNOWN>
<TEXT>&#2;
<TITLE>NATIONAL SEMICONDUCTOR CORP &lt;NSM> FOURTH QUARTER</TITLE>
<DATELINE>    SANTA CLARA, Calif., June 18 -
    </DATELINE><BODY>Shr profit six cents vs loss 10
    Net profit 8.1 mln dlrs vs loss 7.1 mln
    Sales 511.9 mln vs 397.8 mln
    Avg shrs 97.0 mln vs 90.5 mln
    YEAR
    Shr loss 38 cents vs loss 1.10 dlrs
    Net loss 24.6 mln dlrs vs loss 91.5 mln
    Sales 1.87 billion vs 1.48 billion
    Avg shrs 91.7 mln vs 89.8 mln
    NOTE - Current year figure includes previously announced 15
mln dlr restructuring charge.
    Figures include extraordinary credit from tax benefit of
4.2 mln dlrs in quarter vs 2.3 mln a year earlier and 4.2 mln
for year vs 5.6 mln year earlier.
    The 1986 year net reflects 51.2 mln dlr gain from
cumulative effect of accounting change.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6866" NEWID="19030">
<DATE>18-JUN-1987 23:12:09.91</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5168&#31;reute
u f BC-NATIONAL-SEMICONDUCTO   06-18 0104</UNKNOWN>
<TEXT>&#2;
<TITLE>NATIONAL SEMICONDUCTOR &lt;NSM> SEES IMPROVED YEAR</TITLE>
<DATELINE>    SANTA CLARA, Calif., June 18 - </DATELINE><BODY>National SemiConductor Corp,
which earlier reported a profitable fiscal fourth quarter after
a year ago loss, said it expects improved financial performance
during its new fiscal year.
    The company reported a profit of 8.1 mln dlrs in the
quarter ended May 31, after a loss of 7.1 mln dlrs in the year
ago period.
    The company said orders for its core businesses have
improved, adding "Our strong balance sheet and the improved
business environment should enable us to improve our financial
performance during our new fiscal year."
    The company said that during the fourth quarter both its
semiconductor group and its information systems group had
higher sales and improved operating performance than in the
prior quarter and the year-earlier quarter.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6867" NEWID="19031">
<DATE>18-JUN-1987 23:19:19.77</DATE>
<TOPICS></TOPICS>
<PLACES><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5172&#31;reute
u f BC-OKLAHOMA-THRIFT-PLACE   06-18 0117</UNKNOWN>
<TEXT>&#2;
<TITLE>OKLAHOMA THRIFT PLACED UNDER RECEIVERSHIP</TITLE>
<DATELINE>    WASHINGTON, June 18 - </DATELINE><BODY>The Federal Home Loan Bank Board
(FHLBB) today placed &lt;Investors Federal Bank> of El Reno,
Oklahoma under receivership and transferred its 97.8 mln dlrs
in assets to the &lt;Investors Savings and Loan Association>.
    An FHLBB statement said the thrift was insolvent and "had
substantially dissipated its assets," mainly by participating in
large commercial real estate developments. It said it violated
federal laws and regulations on loan documentation, loans to
directors and conflict of interest. The sucessor organisation
is a federal savings and loan to be managed under contract by
Sunwood Management Corp of Parker, Colorado.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6868" NEWID="19032">
<DATE>18-JUN-1987 23:26:43.72</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f5175&#31;reute
u f BC-MITSUBISHI-ELECTRIC-T   06-18 0114</UNKNOWN>
<TEXT>&#2;
<TITLE>MITSUBISHI ELECTRIC TO ASSEMBLE PC'S IN U.S.</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Mitsubishi Electric Corp &lt;MIET.T> plans to
assemble personal computers in the U.S. To counteract the
imposition of a 100 pct import tax in April and a drop in
profits due to the yen's appreciation against the dollar, a
company spokesman told Reuters.
    It will assemble 16-bit MP-286 and 32-bit MP-386 desk-top
computers at its wholly-owned computer and computer-related
equipment sales unit &lt;Mitsubishi Electronics America Inc> in
Torrance, California at a rate if 10,000 a month, he said. This
will include 2,000 TO 3,000 to be sold in the U.S. Under the
Mitsubishi name, he said without giving more details.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6869" NEWID="19033">
<DATE>18-JUN-1987 23:30:02.35</DATE>
<TOPICS><D>trade</D></TOPICS>
<PLACES><D>usa</D><D>singapore</D><D>brunei</D><D>indonesia</D><D>malaysia</D><D>philippines</D><D>thailand</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM V 
&#22;&#22;&#1;f5177&#31;reute
u f BC-SHULTZ-WARNS-ASEAN-OF   06-18 0100</UNKNOWN>
<TEXT>&#2;
<TITLE>SHULTZ WARNS ASEAN OF LOOMING TRADE PROBLEM</TITLE>
<DATELINE>    SINGAPORE, June 19 - </DATELINE><BODY>U.S. Secretary of State George Shultz
warned members of the Association of Southeast Asian Nations
(ASEAN) they could no longer rely on increased exports to the
U.S. For growth.
    "Given the importance of exports, particularly export
manufactures, to all of your countries, you are going to have
to work hard to diversify your markets," he said.
    "While you may be able to maintain your current market share
in the U.S., You clearly will not be able to look to the U.S.
To take major increases in your exports," he added.
    Shultz told the foreign ministers of Brunei, Indonesia,
Malaysia, the Philippines, Singapore and Thailand the U.S.
Would cut its huge foreign trade deficit more rapidly than many
now believed.
    He said ASEAN's looming trade problems would not
necessarily stem from protectionist legislation now being
contemplated by Congress, "but simply because of the adjustments
the U.S. Economy will have to make in order to service our
large and growing external debt."
    Shultz said the U.S. Deficit had resulted not from falling
exports but from higher imports that had fuelled world growth.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6870" NEWID="19034">
<DATE>18-JUN-1987 23:52:30.35</DATE>
<TOPICS></TOPICS>
<PLACES><D>australia</D></PLACES>
<PEOPLE><D>keating</D><D>hawke</D></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f5192&#31;reute
u f BC-AUSTRALIA'S-OPPOSITIO   06-18 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>AUSTRALIA'S OPPOSITION FACES SETBACK ON TAX PLAN</TITLE>
<AUTHOR>    By Francis Daniel, Reuters</AUTHOR>
<DATELINE>    SYDNEY, June 19 - </DATELINE><BODY>The conservative opposition, already
fighting an uphill election battle, now faces controversy in
its own ranks over a possible error in its major tax cutting
program, economists said.
    Professor Michael Porter, architect of the tax plan,
declined to refute Treasurer Paul Keating's charge that the
opposition miscalculated tax and expenditure cuts by several
billion dollars. Economists said the opposition, trailing
behind Labour in opinion polls, would find its chances further
diminished if its tax policy was a miscalculation.
    The tax plan, unveiled by opposition leader John Howard
last week, is the cornerstone of the Liberal Party's economic
strategy to oust the Labour Party in the July 11 poll.
    Keating has said the Howard tax plan would sharply increase
the budget deficit to more than nine billion dlrs and severely
damage Australia's economy, already overburdened with balance
of payments and foreign debt problems.
    In his mini-budget on May 13, Keating said the budget
deficit for the year ending June 1988 would be between two and
three billion dlrs.
    Porter, a key member of the opposition economic think tank,
said he played a leading role in formulating the tax plan but
not Howard's proposed expenditure savings, which Keating
claimed were distorted through double counting.
    Some opposition members said there appeared to be errors,
but a Liberal Party spokesman refused comment, saying the
package was being reexamined.
    "The whole thing is so deceitful," Prime Minister Bob Hawke
said in a radio interview. "Howard has made a mess of it. If
they can't govern themselves, how can they expect to govern the
country?"
    Hawke, who is seeking a third term, said the opposition had
made the election one of the easiest for him.
    "I've never felt more physically and mentally relaxed
(during an election). We've no problems at all," he said.
    The latest public opinion poll, published in the Melbourne
Sun newspaper, showed Labour was leading the opposition by 12
points, indicating a 66-seat majority for Hawke in parliament.
    The Election Commission announced last night that 613
candidates would contest the 148-seat House of Representatives,
while 255 candidates would fight for the 76 Senate seats.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6871" NEWID="19035">
<DATE>18-JUN-1987 23:58:21.89</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0001&#31;reute
u f BC-FUJITSU,-FUJIAN-PROVI   06-18 0108</UNKNOWN>
<TEXT>&#2;
<TITLE>FUJITSU, FUJIAN PROVINCE FORM JOINT VENTURE</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Fujitsu Ltd &lt;ITSU.T> said it signed a
joint venture agreement with the Post and Telecommunication
Administration Bureau of Fujian Province (PTABF), China to
develop and sell software for the Fujitsu-designed digital
telephone switching machine FETEX-150.
    It said in a statement the joint company, &lt;Fujian Fujitsu
Communications Software Ltd> located in Fuzhou city, was
capitalised at about 10 mln yuan and was owned 51 pct by PTABF
and 49 pct by Fujitsu.
    It would create about 20 local jobs and has a target of
annual software sales of 330 mln yen in 1992, Fujitsu said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6872" NEWID="19036">
<DATE>18-JUN-1987 23:59:08.26</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0002&#31;reute
u f BC-MITSUI,-ALLIANCE-IN-F   06-18 0116</UNKNOWN>
<TEXT>&#2;
<TITLE>MITSUI, ALLIANCE IN FUND MANAGEMENT TIE-UP</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>&lt;Mitsui Investment Management Co Ltd>
(MIMCL) and &lt;Alliance Capital Management International Inc>
(ACMII) will sign an agreement late this month to cooperate in
international fund management, a ACMII spokesman said.
    MIMCL, 55-pct controlled by affiliated companies of Mitsui
Bank Ltd &lt;MIBT.T>, will reconsign some of its foreign
securities investment orders to ACMII, he told Reuters.
    ACMII, the London-based 100 pct-owned subsidiary of
&lt;Alliance Capital Management Corp> of New York, will reconsign
some of its foreign orders to MIMCL and instruct MIMCL in
international fund management techniques, the spokesman said.
    Both firms were among 56 investment advisory companies
granted Japanese government approval for discretionary fund
management on June 10, the Mitsui spokesman said.
    Alliance Capital Management Corp is the world's biggest
firm devoted exclusively to fund management and has 35 billion
dlrs in funds, he said.
    Mitsui Investment Co Ltd, established two years ago,
controls about 800 mln dlrs, 80 pct of which is invested in
Japanese equities.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6873" NEWID="19037">
<DATE>19-JUN-1987 00:05:03.32</DATE>
<TOPICS><D>alum</D></TOPICS>
<PLACES><D>indonesia</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F M C 
&#22;&#22;&#1;f0006&#31;reute
u f BC-INDONESIA-RAISES-STAK   06-19 0107</UNKNOWN>
<TEXT>&#2;
<TITLE>INDONESIA RAISES STAKE IN ALUMINIUM PLANT</TITLE>
<DATELINE>    JAKARTA, June 19 - </DATELINE><BODY>Indonesia has increased its share in a
434-billion-yen aluminium smelter joint venture with Japan from
25 to 37 pct, Asahan Project Authority director A.R. Suhud
said.
    The Japanese Export-Import Bank said Indonesia had raised
its share of (P.T. Indonesia Asahan Aluminium) company,
capitalised in 1975 at 91 billion, by swapping 32 billion yen
in government loans to the company for an equity stake.
    The Japanese shareholders, the Overseas Economic
Cooperation Fund and 12 companies, are to invest another 24
billion yen raising capitalisation to 147 billion yen.
    Asahan reported total losses of 97.6 billion rupiah between
1982 and 1985. Suhud said much of the company's 320 billion yen
debt had been caused by falling tin prices and the appreciation
of the yen against the U.S. Dollar. Aluminium is sold in
dollars.
    Prices improved from 1,150 dlrs a tonne six months ago to
about 1,450 dlrs today. The plant is supposed to break even if
prices stay at 1,500 dlrs a tonne.
    Sahud said the plant, with a capacity of 220,000 tonnes a
year, would probably lose money again in 1987. The plant,
situated in North Sumatra, produces mostly for Japan.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6874" NEWID="19038">
<DATE>19-JUN-1987 00:12:36.11</DATE>
<TOPICS></TOPICS>
<PLACES><D>philippines</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0010&#31;reute
u f BC-PHILIPPINE-STOCKS-SOA   06-19 0094</UNKNOWN>
<TEXT>&#2;
<TITLE>PHILIPPINE STOCKS SOAR TO NEW HIGHS, RECORD VOLUME</TITLE>
<AUTHOR>    By Greg Hutchinson, Reuters</AUTHOR>
<DATELINE>    MANILA, June 19 - </DATELINE><BODY>Investors on Philippine stock markets
have shrugged off growing communist activity in the cities to
push share prices to all-time highs on record turnover, brokers
said.
    Regularly heavy trading of more than one billion shares a
day has sent the Manila exchange's composite index soaring to
775.9 from 577.2 points in just over three weeks.
    Brokers described recent trading as "frantic" and "hectic" as
trading records were smashed day after day.
    A total 2.6 billion shares worth 259.4 million pesos
changed hands on the main Manila and the less important Makati
exchanges yesterday, with much of the activity among centavo
priced stocks, brokers said. The turnover was more than double
the record of 1.1 billion shares worth 118.1 million pesos set
on Wednesday.
    Brokers said rising gold prices caused mining shares to
shoot up three weeks ago, and other sectors followed. Share
prices continued their rise even when the gold price fell back
to 450 dlrs an ounce, due to rising confidence in President
Corazon Aquino's handling of the economy, they said.
    Brokers said Aquino's handling of the 18-year-old communist
insurgency and the maintenance of relatively low interest rates
also contributed to the rise.
    Blue chip stocks, such as those of San Miguel Corp and
Philippine Long Distance Telephone Co (PLDT), have risen 25 pct
in three weeks, and the trend is upward in the medium term
although a temporary correction is overdue, they said.
    Since the surge began on May 26, Manila's Mining index has
risen to 5,700.4 points from 4,042.4, its commercial and
industrial index has shot up to 881.0 from 694.9 points, and
the oils indicator has increased to 4.1 from 2.9 points.
    Market activity has been rising in spurts since Ferdinand
Marcos was replaced by Aquino 16 months ago.
    One broker said he thought the Philippine stock market "may
at last have come of age."
    Wilson Sy, president of Prudential Securities, a local
stockbroking firm with Hong Kong affiliations, told Reuters,
"Barring any unforeseen political events you can bet on the
Philippine market. It has shrugged off the communist inroads
into Manila."
    Assassins have killed 52 policemen, soldiers and security
guards in the capital this year.
    Communist hitmen known as sparrows have claimed they killed
22 of them.
    Sy said Philippine stocks were undervalued in world terms
with price-earnings ratios often half those in Hong Kong and
one-sixth those in Japan. He said PLDT, which is also U.S.
Listed, has a price-earnings ratio of about nine.
    Sy predicted Manila's composite index would rise beyond
1,000 points from its current 775.9 mark by year-end.
    Other brokers were more cautious, saying Aquino had to
improve peace and order before investors could treat the
Philippines as they would Hong Kong or Tokyo.
    One broker said he believed about 30 pct of the money going
into stocks was now foreign, much of it from fund managers and
their agents based in Hong Kong and New York.
    Manila Stock Exchange chairman Robert Coyuito told Reuters,
"If the peace and order situation really improved the market
could move beyond a price-earnings ratio of 20 times."
    "But all depends on how Congress performs and the local
elections go," he said.
    A new two-chamber legislature was elected last month and is
due to sit on July 27. Local elections are scheduled for
November.
    PLDT shares closed at 630 pesos a share yesterday, 30 pesos
above Wednesday's record close. PLDT share prices have risen
about nine-fold in 18 months.
    San Miguel shares closed at 190 pesos, also a historic
high, brokers said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6875" NEWID="19039">
<DATE>19-JUN-1987 01:04:05.45</DATE>
<TOPICS></TOPICS>
<PLACES><D>canada</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0043&#31;reute
u f BC-CANADIAN-TAX-REFORM-C   06-19 0103</UNKNOWN>
<TEXT>&#2;
<TITLE>CANADIAN TAX REFORM CALLED AN IMPORTANT STEP</TITLE>
<AUTHOR>    By Larry Welsh, Reuters</AUTHOR>
<DATELINE>    OTTAWA, June 18 - </DATELINE><BODY>Canada's sweeping tax reform package,
announced today, is an important step towards a fairer system,
but is not as bold a revamp of the tax structure as some had
expected, economists and business leaders said.
    "It's the biggest step towards tax reform we've taken in a
great many years," Merrill Lynch Canada Inc chief economist
Michael Manford told Reuters.
    "But the system is the same old system with a lot of
important changes, as opposed to a brand new system," he added.
(See spotlight index page on ECRA)
    Manford said changes introduced by Finance Minister Michael
Wilson did not go far enough in simplifying the federal tax
system. They represent evolutionary rather than revolutionary
reform.
    "Overall, I thought that it was a more timid step than we
were led to believe," he said.
    Wilson's move to increase money collected from corporations
while cutting individual taxes "is probably an acceptable shift,"
said Bill James, president of Falconbridge Ltd, an
international mining company.
    Wilson spread corporate tax increases fairly evenly across
the corporate sector, James said. "So it's not going to hit
anyone too hard and we will remain competitive."
    Wilson said in his speech to the House of Commons that
Canada's tax system needed to be changed to compete with
sweeping reforms in the United States last year.
    "The critical thing on the corporate side is that Wilson
moved most of the taxes much closer to the U.S. System," Manford
said.
    The federal government increased taxes paid by corporations
by about five billion dlrs over the next five years, but
lowered personal taxes by 11 billion dlrs in the same period.
    Despite collecting more corporate taxes, Wilson was able to
lower the tax rate on individual companies by removing many
special tax exemptions and broadening the tax base.
    Wilson's plan also reduced the capital cost allowance, used
by companies to write off major investments, which some
business spokesmen said will hurt business in the long run.
    "That will affect some investment decisions negatively," said
Laurent Thiebeault, Canadian Manufacturers Association
president.
    Tax analysts said for some industries it will take several
days to assess the impact of the capital cost allowance
reductions that will be made over a number of years.
    As anticipated, Canada's opposition parties signalled they
intend to fight the new tax measures as they are introduced in
Parliament over the next few months.
    "It's not tax reform, it's a tax grab," said Liberal leader
John Turner.
    Turner labelled changes to the federal sales tax "a money
machine for the minister of finance."
    Wilson broadened the federal sales tax to include
additional products and also promised to introduce a
broad-based, multi-staged sales tax.
    "It's not at all a fair package and Canadians are going to
see that very quickly," New Democratic Party leader Ed Broadbent
said.
    However, economist Manford said Wilson acted wisely to
protect lower income Canadians by providing tax credits that
will cut 850,000 people from the tax rolls.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6876" NEWID="19040">
<DATE>19-JUN-1987 01:07:20.73</DATE>
<TOPICS><D>money-fx</D><D>reserves</D></TOPICS>
<PLACES><D>taiwan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0050&#31;reute
u f BC-TAIWAN-DOLLAR-AND-RES   06-19 0086</UNKNOWN>
<TEXT>&#2;
<TITLE>TAIWAN DOLLAR AND RESERVES SEEN RISING MORE SLOWLY</TITLE>
<AUTHOR>    By Chen Chien-Kuo, Reuters</AUTHOR>
<DATELINE>    TAIPEI, June 19 - </DATELINE><BODY>Recent government moves to curb capital
inflow have temporarily helped to slow the rise of Taiwan's
foreign exchange reserves and to stabilise the local dollar
against the U.S. Currency, officials and bankers said.
    Central bank governor Chang Chi-Cheng told reporters the
reserves rose only about 500 mln U.S. Dlrs in the past two
weeks and the local dollar appreciated more slowly against the
U.S. Dollar.
    Chang said, "The pace of increase in our reserves is much
slower now than before and our currency is getting more stable."
He said the reserves, mainly the result of the trade surplus
with the U.S., Rose at the rate of two to three billion U.S.
Dlrs a month between January and May.
    The reserves, the world's third largest after Japan and
West Germany, now total well over 60 billion U.S. Dlrs.
    On June 2 the central bank froze overseas borrowings of
local and foreign banks and cut the limit on central bank
purchases of forward U.S. Dollars from banks to 40 pct from 90
pct of the value of a contract.
    Local and foreign bankers said the June 2 measures had
drastically limited their ability to lend foreign exchange to
importers and exporters.
    They said their overseas borrowings and forward dollar
transactions showed a drastic decline with some banks
registering a fall of up to 30 pct.
    Bank dealers said the Taiwan dollar has stabilised against
the U.S. Currency this week after rising two to five Taiwanese
cents a day between June 2 and 13 compared with a rise of five
to eight cents in May.
    The bank dealers said the central bank, which had
previously bought U.S. Dollars heavily, sold at least 1.1
billion U.S. Dlrs in the past two weeks to meet commercial
demand.
    They said they expected the government to keep the local
dollar stable in the near term to give breathing space to
businesses experiencing slower exports because of the rise of
more than 23 pct in the value of the Taiwan dollar since
September 1985.
    The Taiwan dollar opened at 31.09 to the U.S. Dollar today,
unchanged from yesterday.
    Keh Fei-Lo, vice president of First Commercial Bank, said,
"It appears the central bank's move to curb the capital inflow
is quite successful."
    Vice economic minister Wang Chien-Shien said the slower
rise in foreign exchange reserves would help ease pressure from
Washington over the large U.S. Trade deficit with Taiwan.
    Over the past year Taiwanese businessmen have delayed
imports of machinery and production equipment because of
exchange rate uncertainty, he said. The stable exchange rate
would help boost imports, particularly from the United States.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6877" NEWID="19041">
<DATE>19-JUN-1987 01:23:58.25</DATE>
<TOPICS><D>alum</D></TOPICS>
<PLACES><D>japan</D><D>indonesia</D><D>brazil</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0063&#31;reute
u f BC-JAPAN-APPROVES-AID-FO   06-19 0112</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN APPROVES AID FOR INDONESIA, BRAZIL ALUMINIUM</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Japan's cabinet approved a plan to help
financially-troubled aluminium ventures in Indonesia and
Brazil, an official at the Ministry of International and Trade
Industry (MITI) said.
    Japan will invest 24 billion yen in &lt;PT Indonesia Asahan
Aluminium> in addition to the 68.3 billion yen already invested
in the company. The government and private interests will
equally share the additional investment, he said.
    They will also provide equal shares in 6.3 billion yen in
new investment in the Albras Amazon aluminium project in
Brazil, in addition to the 45.7 billion yen already invested.
    The Japan Export-Import Bank will cut its rates on loans to
Asahan and Albras to about five pct from about seven pct, the
official said.
    Interest rates on loans by Japan's private banks to the two
projects are expected to be reduced to around five pct from the
current seven to eight pct, but an agreement has yet to be
reached, industry sources said.
    Under the rescue scheme for Asahan, in which 91.1 billion
yen has been invested, Indonesia will also extend another 32
billion yen to the company.  This will raise Indonesia's
investment ratio to about 40 pct from the current 25 pct.
    The Brazilian government has already agreed to invest an
additional 6.5 billion yen in Albras, in which investment now
totals 93.2 billion yen, but its stake will not change from 51
pct, the official said.
    The sources said the rescue programs for the two projects
were larger than earlier expected, reflecting Japan's desire to
help develop the economies of Indonesia and Brazil and to
stabilise sources of aluminium.
    Japan depends on imports for more than 90 pct of its
aluminium demand, which totals some 1.8 mln tonnes a year, they
said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6878" NEWID="19042">
<DATE>19-JUN-1987 01:38:31.06</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES><D>japan</D><D>usa</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0069&#31;reute
u f BC-MITSUI-BUYS-FIVE-PCT   06-19 0104</UNKNOWN>
<TEXT>&#2;
<TITLE>MITSUI BUYS FIVE PCT STAKE IN U.S. CHIP MAKER</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Mitsui and Co Ltd &lt;MITS.T> paid 1.5 mln
dlrs in early May for a five pct stake in &lt;Zoran Corp>, a
California-based maker of large scale integrated circuits (LSI)
with computer graphic, communications and medical applications,
a Mitsui spokesman told Reuters.
    He said the two firms will form a marketing company in
Japan as early as next year, although details of the joint
venture are not yet fixed. Mitsui expects last year's 10
billion yen Japanese LSI market to grow quickly.
    Zoran was founded in 1981 and now has about 100 employees,
he said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6879" NEWID="19043">
<DATE>19-JUN-1987 01:59:21.71</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0081&#31;reute
u f BC-JAPAN-REPORT-SAYS-FAU   06-19 0100</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN REPORT SAYS FAULTY REPAIRS CAUSED JAL CRASH</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Faulty repairs and inadequate inspection
caused the 1985 crash of a Japan Airlines Co Ltd &lt;JAPN.T> (JAL)
Boeing 747 which killed 520 people, the Japanese government
said in a final official report.
    The clear cause of the crash was faulty repair work by the
Boeing Co &lt;BA>, said Shun Takeda, the ministry of transport
official leading the accident investigation committee.
    But the report also criticised the ministry's inspectors
for failing to carry out a full check of the repairs before
signing the clearance sheet.
    The aircraft hit Mount Osutaka, north of Tokyo, on August
12, 1985, after a bulkhead separating the pressurised cabin
from the unpressurised tail suddenly burst, fracturing key
navigation systems. Only four people survived.
    A Japan Air Lines spokesman declined comment on the report.
Boeing is expected to release a statement later today.
    The report cleared the JAL crew of all responsibility.
    In a separate set of recommendations, the investigators
said large aircraft operating in Japan should have fail-safe
systems, but did not say how this should be done.
    A press statement by a group of lawyers representing
victims of the crash criticised the report for not dealing in
greater depth with the fail-safe aspect.
    The lawyers said Boeing had showed it believed the crash
was due to design defects by specifying two design
modifications to prevent a recurrence in a memorandum filed in
King County, Washington, Superior Court last March 24.
    They said similar official recommendations for fail-safe
systems following two air disasters involving DC-10 aircraft,
near Paris in 1974 and at Chicago in 1979, had been rejected
after objections from aircraft manufacturers.
    The government investigators asked the ministry to
formulate concrete guidelines for its inspectors. An internal
ministry memo earlier this year complained that inspectors were
left too much on their own when making aircraft checks.
    A Boeing team made repairs to the aircraft's aft bulkhead
under JAL supervision, and Transport Ministry inspectors
approved the repairs without actually seeing them, today's
report said.
    The inspectors were unable to check Boeing's work because
the part repaired had been covered by a seal, the report said.
    Over time, cabin pressurisation speeded up the process of
metal fatigue in the repaired bulkhead.
    Boeing issued an official statement on September 6, 1985,
saying the 1978 repairs it had carried out were faulty. It did
not link them with the crash.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6880" NEWID="19044">
<DATE>19-JUN-1987 02:05:48.53</DATE>
<TOPICS><D>trade</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0088&#31;reute
u f BC-JAPAN'S-JUNE-INTERIM   06-19 0095</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN'S JUNE INTERIM TRADE SURPLUS NARROWS</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Japan's custom-cleared trade surplus
narrowed to 1.61 billion dlrs in the first 10 days of June from
1.97 billion a year earlier, the Finance Ministry said.
    The June interim surplus compares with a 1.76 billion dlr
surplus in the same May period.
    FOB exports in the first 10 days of June rose 17.6 pct from
a year earlier to 6.05 billion dlrs while CIF imports rose 39.6
pct to 4.44 billion.
    The average yen/dollar rate used for the figures was 141.04
yen against 169.03 a year earlier.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6881" NEWID="19045">
<DATE>19-JUN-1987 02:45:16.79</DATE>
<TOPICS><D>earn</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0106&#31;reute
u f BC-C.-ITOH-AND-CO-LTD-&lt;C   06-19 0046</UNKNOWN>
<TEXT>&#2;
<TITLE>C. ITOH AND CO LTD &lt;CITT.T></TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Year ended March 31
    Group shr 18.83 yen vs 18.73
    Net 20.07 billion vs 18.47 billion
    Pretax 22.14 billion vs 25.36 billion
    Operating 37.57 billion vs 51.57 billion
    Sales 14,762 billion vs 15,900 billion
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6882" NEWID="19046">
<DATE>19-JUN-1987 03:01:42.04</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;f0119&#31;reute
u f BC-JAPAN-MACHINERY-ORDER   06-19 0103</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN MACHINERY ORDERS FALL IN APRIL</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Japan's private sector machinery orders,
excluding shipbuilding, fell 10.4 pct in April from March to a
seasonally adjusted 663.8 billion yen, after rising 17.6 pct in
March, the government's Economic Planning Agency said.
    April orders rose 2.0 pct from a year earlier after a 22.6
pct year-on-year rise in March, an agency spokesman told
Reuters.
    Seasonally adjusted private sector orders, excluding those
for shipbuilding and electric power firms, fell 7.5 pct in
April from March to 517.4 billion yen, after a 5.7 pct rise in
March from February.
    April orders fell 1.3 pct from a year earlier after being
unchanged in March.
    The April drop was due mainly to a 12.9 pct decrease in
orders from machine tool industries and a 15.3 pct drop in
orders from car makers, the spokesman said.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6883" NEWID="19047">
<DATE>19-JUN-1987 03:53:39.82</DATE>
<TOPICS></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;f0189&#31;reute
u f BC-U.S.-SEEKS-JAPAN-HELP   06-19 0090</UNKNOWN>
<TEXT>&#2;
<TITLE>U.S. SEEKS JAPAN HELP IN EVENT OF 1988 RECESSION</TITLE>
<AUTHOR>    By Rich Miller, Reuters</AUTHOR>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Senior U.S. Officials are looking to Japan
for help in buttressing the world economy in the event of an
American recession next year, Japanese government sources said.
    During a visit to the U.S. Earlier this month, Economic
Planning Minister Tetsuo Kondo was asked by both U.S. Federal
Reserve chairman Paul Volcker and Council of Economic Advisers
chairman Beryl Sprinkel what Japan could do if the U.S. Enters
recession next year.
    Although Sprinkel indicated that he personally did not
expect a recession next year, Volcker seemed to acknowledge
that an economic downturn was at least a possibility, the
sources said.
    Faced with with a huge budget deficit, the U.S. Has little
room to manoeuvre on fiscal policy to counteract any downturn
that might occur in 1988.
    It is also hamstrung as far as monetary policy is concerned
because U.S. Inflation is already showing some signs of picking
up, one source said.
    But Japan is also limited in what action it could take to
help counteract a U.S. Recession without running the risk of
overstimulating its domestic economy and pushing up inflation,
the sources said.
    Money supply growth is accelerating and interest rates are
at record low levels. In May, M-2 money supply plus
certificates of deposit grew at a year-on-year rate of 10.2
pct, well above nominal GNP growth of four to five pct.
    Some government sources are also worried that the recently
announced 6,000 billion yen emergency economic package could
push up land prices and the construction sector's inflation.
    Public investment spending grew at a year-on-year rate of
about 10 pct in April, but that could accelerate to 20 pct
later this year under the impact of the emergency package, one
source said.
    The 6,000 billion yen package was generally well received
in the U.S., Although U.S. Congressmen and businessmen told
Kondo they wanted the measures implemented quickly, sources
said.
    The Japanese minister explained that the acceleration of
public works spending in the package was taking place
immediately, they said.
    U.S. Congressmen were particularly interested in how much
impact the package would have on reducing the bilateral trade
imbalance, a question which Kondo was unable to answer clearly,
given the many economic uncertainties involved, the sources
said.
    While recognizing that Japan's trade surplus is falling in
terms of volume, some Congressmen expressed concern that it was
not falling fast enough.
     But the sources said no one pressed Kondo for a further
rise of the yen as a solution to correcting the bilateral trade
imbalance.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6884" NEWID="19048">
<DATE>19-JUN-1987 03:59:02.90</DATE>
<TOPICS><D>acq</D></TOPICS>
<PLACES></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0194&#31;reute
f f BC-Sainsbury's-says-it-t   06-19 0013</UNKNOWN>
<TEXT TYPE="BRIEF">&#2;
******<TITLE>Sainsbury's says it taking control of Shaw's Supermarkets
for 30 dlrs a share
</TITLE>&#3;

</TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6885" NEWID="19049">
<DATE>19-JUN-1987 04:08:37.39</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D><D>indonesia</D><D>bolivia</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;RM AI 
&#22;&#22;&#1;f0206&#31;reute
u f BC-JAPAN-TO-MAKE-LOANS-T   06-19 0085</UNKNOWN>
<TEXT>&#2;
<TITLE>JAPAN TO MAKE LOANS TO INDONESIA AND BOLIVIA</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Japan will lend 27.17 billion yen to
Indonesia and will share equally with the World Bank a 7.25
billion yen loan to Bolivia as part of its efforts to help
Third World countries, a Foreign Ministry spokesman said.
    The lending is in line with Japan's plan to contribute 20
billion dlrs over the next three years to developing countries.
    Both loans will be used for development, the spokesman told
Reuters. He declined to name terms.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6886" NEWID="19050">
<DATE>19-JUN-1987 04:11:27.72</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;f0207&#31;reute
b f BC-SAINSBURY'S-TAKING-CO   06-19 0104</UNKNOWN>
<TEXT>&#2;
<TITLE>SAINSBURY'S TAKING CONTROL OF SHAW'S SUPERMARKETS</TITLE>
<DATELINE>    LONDON, June 19 - </DATELINE><BODY>J Sainsbury Plc&lt;SNB.L> said it agreed to
take control of the U.S. Shaw's Supermarkets Inc through a
combination of share purchases and a tender offer at 30 dlrs a
share.
    Sainsbury bought about 21 pct of the stock in 1983. It said
its U.S. Subsidiary, Chene Investments Inc, bought 2.55 mln
common shares from the controlling Davis family yesterday at 30
dlrs a share for 76.5 mln dlrs, lifting its stake to 49.4 pct.
    A tender offer for the outstanding shares will be launched,
also at 30 dlrs a share for a maximum further cost of 184.4
mln.
    The Shaw's Board and the Davis family has agreed to accept
the offer, thus assuring Sainsbury's a total holding of 74.0
pct.
    The company had allotted 20.18 mln new ordinary shares to
&lt;Warburg Securities Ltd> which it said would be sufficient to
finance about 188 mln dlrs of the maximum 261 mln dlrs payable.
    Shaw's operates a chain of 49 supermarkets in
Massachusetts, Maine and New Hampshire which in 1986 produced
sales of 1.1 billiob dlrs and pretax profit of 31.1 mln. At the
end of 1986 it had net assets of 88 mln dlrs.
    Last September, Sainsbury's increased its stake in Shaw's
to 28.5 pct. In the year to March 21, it reported a rise in
pretax profit to 246.9 mln stg from 192.7 mln on sales that
increased to 4.04 billion from 3.58 billion.
    Sainsbury shares had fallen five pence before the
announcement to 590p from last night's close but were unmoved
by news of the deal.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6887" NEWID="19051">
<DATE>19-JUN-1987 04:20:47.11</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0223&#31;reute
u f BC-C.-ITOH-SEES-NO-GROWT   06-19 0108</UNKNOWN>
<TEXT>&#2;
<TITLE>C. ITOH SEES NO GROWTH IN 1987/88 GROUP PROFIT</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>C. Itoh and Co Ltd &lt;CITT.T> said its group
net profit in the year ending March 31, 1988, is expected to be
unchanged from a year earlier.
    The prediction assumes a yen/dollar rate of 140 yen and a
crude oil price of 18 dlrs a barrel, a company spokesman told
Reuters. Sales in 1987/88 are estimated at 15,100 billion yen,
up 2.3 pct from a year earlier.
    The company earlier reported group net profit of 20.07
billion yen in the year ended March 31, 1987, up 8.6 pct from a
year earlier, helped by a drop in sales and administration
costs and reduced interest charges.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6888" NEWID="19052">
<DATE>19-JUN-1987 04:25:32.92</DATE>
<TOPICS></TOPICS>
<PLACES><D>uk</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0231&#31;reute
r f BC-UBS-TO-SELL-25,000-SA   06-19 0065</UNKNOWN>
<TEXT>&#2;
<TITLE>UBS TO SELL 25,000 SANDOZ SHARES</TITLE>
<DATELINE>    LONDON, June 19 - </DATELINE><BODY>Union Bank of Switzerland (Securities)
Ltd said it is lead managing the sale of 25,000 new bearer
shares of Sandoz Ltd.
    The shares closed in Zurich yesterday at 12,100 Swiss
francs each. Final terms will be set on, or before, June 25.
    The selling concession is two pct while management and
underwriting each pays 3/4 pct.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="YES" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6889" NEWID="19053">
<DATE>19-JUN-1987 04:25:41.52</DATE>
<TOPICS><D>earn</D></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0232&#31;reute
u f BC-ISUZU-MOTORS-LTD-&lt;ISU   06-19 0066</UNKNOWN>
<TEXT>&#2;
<TITLE>ISUZU MOTORS LTD &lt;ISUM.T> SIX MONTHS TO APRIL 30</TITLE>
<DATELINE>    TOKYO, June 19 -
    </DATELINE><BODY>Parent shr loss 15.85 yen vs profit 2.02
    Interim div nil vs nil
    Net loss 12.92 billion vs profit 1.65 billion
    Current loss 12.52 billion vs profit 4.44 billion
    Operating loss 8.76 billion vs profit 6.52 billion
    Sales 443.90 billion vs 528.03 billion
    Outstanding shrs 815.10 mln vs 814.97 mln
 REUTER
&#3;</BODY></TEXT>
</REUTERS>
<REUTERS TOPICS="NO" LEWISSPLIT="TEST" CGISPLIT="TRAINING-SET" OLDID="6890" NEWID="19054">
<DATE>19-JUN-1987 04:31:03.46</DATE>
<TOPICS></TOPICS>
<PLACES><D>japan</D></PLACES>
<PEOPLE></PEOPLE>
<ORGS></ORGS>
<EXCHANGES></EXCHANGES>
<COMPANIES></COMPANIES>
<UNKNOWN> 
&#5;&#5;&#5;F 
&#22;&#22;&#1;f0237&#31;reute
u f BC-ISUZU-DENIES-PLANS-TO   06-19 0091</UNKNOWN>
<TEXT>&#2;
<TITLE>ISUZU DENIES PLANS TO IMPORT GM CARS TO JAPAN</TITLE>
<DATELINE>    TOKYO, June 19 - </DATELINE><BODY>Isuzu Motors Ltd &lt;ISUM.T> has no plans to
import cars made by General Motors Corp &lt;GM.N> to Japan, an
Isuzu spokesman told Reuters.
    The Japanese daily Yomiuri Shimbun reported that Isuzu had
decided to import cars directly from GM.
    Each month Isuzu's domestic distributors sell five to 10
cars from GM's Buick, Chevrolet, and Oldsmobile range.
    The cars are supplied by Yanase and Co Ltd, a Japanese
importer and distributor.
    Isuzu is owned 38.6 pct by GM.
 REUTER
&#3;</BODY></TEXT>
</REUTERS>


