The Observer from London, Greater London, England • 21

21 OBSERVER SUNDAY 16 JUNE 1991 WIS AOs RfllPs ftunm Haiira Iheaft odd Ld D0ej7 1989 "8f 818,496 557,568 619,025 'S'JSZ" 2,408 2, 352 122.902 188,470 7,096 d.433) 1,569,926 424 Staff costs salaries socia! security costs other pension costs Depreciation Other operating cho. -j Exchange adjustments M0l OF 01RECT0R5 AS0 CERTAIN EMPLOYEES No Director received any remuneration in the year (1988 ENil). The number of employees of the company other than Oirectors whose emoluments, excluding pension contributions, exceeded 30,000 ws as follows: terms of the new EC merger regulation. Such devotion to Brussels is novel for Lilley, who is a member of the Thatcherite No Turning Back group, but his message is clear: he will do nothing. Some Whitehall insiders believe that on Thursday night Lilley sent out conflicting signals.

During an industry debate, he reiterated his line: 'Like it or not, any bid where combined turnover exceeds Ecu 5 billion (3.5 billion) is outside British jurisdiction. It would fall to be considered by the European Just hours later, in a letter to Cook, Lilley appeared to contradict himself: 'I should like to make it clear that I shall take an interest consistent with my responsibilities in relation to the Merger Regulation to see whether there are grounds for investigation by the UK author-; Few are convinced by this apparent change of heart. While there are several exits' from the EC merger regulation, under which: Lilley could request authority to act, legal experts take (the 'view that ICI would be better placed to argue its case in Brussels. The regulation requires that technological and economic progress must be taken into account as" well as the effect on competition, i-M1' A full-scale EG investigation would, scrutinised by all commissioners, many of whom such as industry commissioner Martin Bangemann hold widely different views on market forces from EC competition commissioner Sir Leon Brittan; Should a bid emerge, it may well prove; as the first hostile takeover to come: before the EC under the new regulation, the subjecfof a full four-month inquiry. Sarah Whitebloom THE GOVERNMENT faces escalating political pressure from all.

quarters to back ICI against the threat of a hostile 10 billion-plus takeover bid from Hanson. Concern has been mounting over the laissez-faire approach of John Major's Government to the ICI issue since Hanson first acquired its 2.8 per cent stake in Britain's largest manufacturing combine some four weeks ago. An Early Day Motion condemning any predatory move for ICI by Hanson, tabled by Labour's Doug Hoyle, has attracted support from some 70 MPs. Further initiatives are expected this week; An all-party pressure group was launched by Labour backbencher Frank Cook last Thursday to consolidate Parliamentary support for. ICI.

Only members with a direct interest in ICI's fate were invited, but more than 20 politicians from across the political spectrum and including two peers attended the first late-night meeting. The group is to mount a concerted campaign initially consulting with other Westmin- ster interests, such as backbench Trade and Industry to mobilise public support'randincreasespressure; on Majot and Trade Secretary Peter Lilley. ICI chairman Sir, Denys Henderson is to put his board's case to the back-bench committee on the chemicals industry this week. Despite calls for support, Lilley has to date shown a marked reluctance to back ICI. His position has been that, while not commenting on a possible bid, it would be a matter for the European Commission; under the pic.

His salary is not, therefore, disclosed in Hanson pic's accounts. Hanson Overseas' registered office is the same as Hanson pic 1 Grosvenor Place, London and it shares the same auditors: the Hull office of Ernst Young. Hanson Overseas' turnover in 1988-89 rose from 838,857 to 1,562,830, Turnover, according to the company, 'represents a management charge raised on the ultimate holding company': Hanson pic. Operating costs in 1988-89 rose from 837,424 to 1,569,926 (much in line with the anonymous employee's emoluments) which resulted in a loss of 7,096 compared with a 1987-88 profit of 1,433. No taxes were payable.

On Friday the Times revealed that Hanson pic embarked on a major restructuring in 1989 which involved the valuation and internal purchase of some 9.5 billion of group assets. Hanson Overseas Holdings (not to be confused with Hanson Overseas Ltd) purchased numerous assets, including those held by companies incorporated in Panama, Bermuda and Guernsey. Taylor, speaking to The Observer, disputed the Times' assertion that Hanson's restructuring was 'secret'. He stressed that Hanson Overseas Holdings' accounts were filed at Companies House 'where anyone could examine them'. Taylor insisted that the asset shuffling was not 'material.

Mn his words: 'It does not affect Hanson's consolidated acc-; ounts. He added that the Inland Revenue had 'approved the restructuring'. Melvyn Marckus, City Editor, Lorana Sullivan and Stella Shamoon INQUIRIES by The Observer reveal that an anonymous employee of Hanson Overseas Ltd, a subsidiary of Hanson pic, led by Lord Hanson, was paid a salary of more than 818,000 in 1988-89 and was also the beneficiary of a pension contribution of some 619,000. Records filed at Companies House by Hanson Overseas whose principal activity is 'the supply of overseas corporate management services' do not disclose the identity of the company's singularly highly paid employee. Nor do they throw any light on where he or she is based.

During the previous financial year, Hanson Overseas paid its mystery employee some 557,500 by way of salary and contributed somewhat more than 90,000 towards the pension. No UK social security payments were made in either year: an indication that the recipient works abroad It would appear that Hanson Overseas has three directors Martin Taylor, Hanson pic's vice-chairman who is also a director of NatWest and a member of the City Takeover Panel, and fellow Hanson directors Derek Bonham and Alan Hagdrup. Secretary of Hanson Overseas is Roger Tyson. According to the accounts, no director of Hanson Overseas received any remuneration during the financial years 1987-88 or 1988-89, while the average 1 'if disclosure of salaries. 555.001 to 560,000 815,001 to 820,000 Whose salary? How Hanson number of persons employed by the enterprise, including directors, remained at four during both years.

On Friday, Taylor refused to identify Hanson Overseas' employee whose total benefits in respect of 1988-89 amounted to the thick end of 1.5 million. According to Hanson Overseas' accounts: 'The company participates in a defined benefit pension scheme which is funded at group headquarters, the Hanson No 2 Pension Taylor's brief message to The Observer was: 'To the extent that we are required to disclose emoluments, we have disclosed them. Thank you. Sir Tim Bell, one of a host of external public relations advisers which Lord Hanson has employed to further Hanson pic's ambitions to 'merge' with ICI, said: 'They won't disclose people's Privacy, you The total benefits of well's ambitions is Alan Sugar, millionaire chairman of the Amstrad computer concern, who is backing Spurs manager Terry Venables. A Sugar; who was introduced to Venables by Spurs director Tony Berry, initially said he would step aside if Maxwell reentered the fray.

Sugar's offer, also in the form of a discounted, rights issue, has already been put to the Spurs' board, led by Nat Solomon. But it is believed that this proposal, tendering for new shares at perhaps 70p, would only net 7 million. It would price Spurs' shares at some 20p less than their value when they were suspended by the Stock Exchange last autumn. Maxwell's offer is likely to be more attractive than Sugar's initial foray. But without Sugar, Venables still hugely popular Scots power boost for small investors Maxwell Sugar in Spurs final held in New York next weekend.

United States officials are puzzled by the recent strength' of the dollar. Public reports that the Federal Reserve is content with a strong currency do not represent the Fed's private views. The Fed feels inhibited about theJscopeifor further jreductirinsi inshortrterm interest but us mrerveauon uie range-market had little effect in stem-: ming the dollar's rise. Given the sensitivity: between Japan and the US on trade matters, the strength of the dollar does not help the US trading position. There are signs from Tokyo that Japan is fed up with being lectured by the Americans, and that it intends to flex its muscles.

On Friday, a top Japanese trade official, Yuji Tanahashi, suggested the US needed help to -restore its industrial base, in much the same way Japan needed help from the US after the Second World War. George Pitcher Industrial "Editor CpjTISHSpCRETARY, Ian. Lang flew 7torEinburgh after the Trooping the "Colour ceremony yesterday and was last night ensconced in 'dedicated, premises' with advisers: from BZW and British Linen Bank as he considered his options for allocation of shares Jn the two Scottish electricity rf Applications for shares tin closed last Wednesday with some 2. 1 million: aspirant retail investors subscribmg; for as many shares than are offer. Full clawback from institutions is consequently triggered, meaning that 58 per cent.

of each company is now; available to the general public. Lang and his advisers were George Parker-Jervis ROBERT Maxwell, publisher of the Daily Mirrqg, will tomor-, propose a- dis counted issue to win. control of Tottenham Hotspur, the first division football club with debts of some 20 million. Maxwell, who was in Wyoming yesterday for the marriage of his eldest son Ian, is believed to be ready to invest up to 12 million for a quarter or more of the enlarged Ordinary equity. Maxwell withdrew from secret talks over a similar 12 million cash injection nine months ago.

In keeping with Football League regulations, which forbid effective control of more than one club, Maxwell has sold his 76 per cent stake in Derby County for 5 million. The only obstacle to Max 1969 1 1988 1 Overseas paid out C1.5m. 1,437,520 in favour of Hanson Overseas' mystery man or woman appear generous, bearing in mind the fact that Lord Hanson's emoluments for 1989-90 amounted to 1,457,000 a reduction from 1988-89's 1,534,000. For the year to end-September last the highest paid director (based in the UK) of Hanson Pic excluding Lord Hanson received emoluments of between 565,001 and 570,000. The highest paid non-director received between 195,001 and 200,000.

All of which suggests that Lord Hanson's emoluments, during 1988-89, were just 96,000 more than the emoluments of Hanson Overseas' man from Hanson pic's annual report and accounts does not list the emoluments of Lord White of Hull, chairman of Hanson Industries, based in the US. Lord White lives 'over there' and is not a director of Hanson Maxwell: 1 2m Injection. with Spurs fens may choose to leave the club. Those close to Spurs say that, after last week's refinancing of the troubled club by its bankers, the Solomon can afford to ignore both Maxwell and Sugar if their offers do not satisfy the board. Midland, which is owed 11 million, has guaranteed the debt until next May.

Spurs has agreed to sell star striker Paul Gascoigne to Lazio of Italy for 4.5 million, but the deal can still be unscrambled. contents of the Prussian State Museums from Berlin are also believed to be in Moscow. In particular, Sotheby's is understood to have told the Soviets that they can keep a proportion of these private collections -10 pier cent is a figure mentioned if they return the rest promptly. According to one source, some of the collections could be released 'within two years'. Some idea of the quality of Personal Finance Banks under fresh fire26 jtlOMTEfiekv 3 last night understood to be anxious, as in previous privatisa- tions, fcy avoid aballpt, sp it is mostjikelytha'tthe familiar patr, tefrifof1 scalingdownjJwithdis-j appointed applcantsJrj will emerge', allocation -is announced tomorrow.

Large investors are likely to receive no shares at all and it is possible1 that subscribers; did not pre-register thought to amount-to some 200,000 in-" total will also be denied an allocation. -f The back-end tender for nearly 16 per cent of the shares, available toUK institutions and overseas investors that have underwritten the offer, closed late on Friday and the premiums that the have required to pay are likely emerge today. Dealings in the shares start at 2.30pm on Tuesday. fixed interest and stockmarket investments can deliver the rising income needed for a comfortable retire To find out how Sottihielb's seeCts Sowiett spaSDs CHANCELLOR Norman Lamont and the Governor': of the Bank of England, Robin Leigh-Pemberton, are contin-r uing to resist the mounting clamour for further cuts in interest rates. The Bank's intervention in the money markets at the end of last week1 ihdicatedl.that it does not wish 'to cut rateshhis week -anS" the recent weakening ofsterling.

Meanwhile, with inflation now down to 5.8 per cent, and expected to drop to 4 per cent in the autumn, real interest rates are remarkably high. The Confederation; of British Industry's chief economic adviser, Professor" Douglas McWilliams, has called for a substantial cut in base rates to restore confidence from 11.5 per cent to 9.5 per cent over three months. But the pound closed below its central rate of DM2.9S last week, at DM2.935. Mainly because of the strength of the dollar, the pound's effective rate (the average against all the looted collections can be gained from the Von Klemperer Collection of rare books, which is to be auctioned in London on 28 June, also by Sotheby's. Dr Victor von Klemperer (1876-1942) was a director of the Dresdner Bank, which his father founded.

A collector of medieval ihanuscripts and early printed books, he also inherited a fine collection of porcelain, but was forced to leave Germany in 1938. Hanson: Privacy prohibits 'Sterling fears mount William Keegan JEconomics Editor; major currencies) is some 4 per cent lower than when sterling was last below DM2.95. With Labour pressing aheadv in the opinion polls, and attention once again focusing on Britain's continuing balance of payments deficit, some City economists have expressed doubts about the Government's ability to continue reducing interest rates without endangering its exchange rate mechanism commitments. Exchange rate movements and the state of the global econ- omy will be discussed at a spe- cial meeting of the Group of Seven finance ministers and central bank governors to be off waiir The collection was earmarked for a proposed museum in jLinz, Austria, where Adolf Hitler spent his early years. Most of the the porcelain was destroyed during the bombing of Dresden.

But the books survived and Dr von Klemperer's children have now located some of them in Dresden's Sachsische Landesbibliothek and the Dresden Library. These are the books in the sale. Of. the original 500 von Klemperer incunabula (books printed before 1500), however, only 30 are in the Sotheby's auction, which is expected to bring 400,000. That the other books are in the USSR is confirmed by the fact that the incunabula found in Dresden had interleaved notes in Russian made by a Soviet scholar.

The books are now believed to be in the, Lenin Library and are certainly one of the collections Sotheby's is trying hard to prise loose. Of the many other books still missing since the Second World War, the most famous is a two-Volume Gutenberg Bible, containing a number of miniatures. Now worth millions, it was last seen in Leipzig. City Melvyn Marckus 22 Managing the Met 23 Throg St 23 The week ahead 23 William Keegan 24 Centre Stage 24 Bottom Line 24 Paris Air Show ......24 Personal Finance Banks under fire ..............26 Investment rules 27 Saving Snips ...........27 Alternatives 27 Factoring feature Ad Lib 31 Mammon ....33 Prices 33 Economic: Indicator .........33 Tourist rates 33 i Good news if you're retired. Reich riches: Von Klemperer with Prof Haebler, who catalogued the collection.

Bound for a museum In Unz, Hitler's childhood home, the books turned up In Dresden; If most of your money- Is in the building society, falling in vvvxv Ji.xy -v st 7 rrru The auction house is well placed to offer help as it has three senior executives who make regular visits to Moscow. Sotheby's has become well known to officials in the Ministry of Culture since the company held a widely publicised auction of modern Russian art in Moscow in 1988. But negotiating manoeuvres open to private individuals are harder to use where public collections are concerned. The Peter Watson SOTHEBY'S, the international auction house, is understood to be negotiating in Moscow for the return of a number of art and rare book collections that were looted from Germany, the Netherlands and France during the Second World War and taken to the Soviet Union. The company is not saying which collections are involved but much, new information has come to light as a result of glas-nost and, particularly, the reunification of Germany.

Officials in what was formerly East Germany are now providing information on works of art destroyed or removed to the Soviet Union to former residents or their descendants who fled such areas during World War II. In some cases, certain Red Army units and individual officers who removed the collections have been identified, as have the probable locations of the objects in the USSR. Several of the victims of the lootings have told Sotheby's that they intend to sell their collections once they are returned. Feature High-fliers at Paris25 mml if terest rates can only mean a drop in your standard of living. ment As Britain's largest n- tit lit Williams can help retirement income speci you, couDon 1170 VU III I I Knight alists, this is a problem have been addressing for Knight Williams and Company Limited, 161 New Bond Street, London Wl OLA or telephone us on 071 408 1138.

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