( S ( NP-SBJ ( PRP They ) ) ( VP ( MD would ) ( ADVP ( RB also ) ) ( VP ( VB identify ) ( NP ( NP ( DT the ) ( JJS best ) ( NN way ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB add ) ( NP ( NNS programs ) ) ( SBAR-ADV ( SINV ( MD should ) ( NP-SBJ ( DT the ) ( NN budget ) ) ( VP ( VB come ) ( ADVP-CLR ( RB in ) ) ( PP-MNR ( IN at ) ( NP ( JJR higher ) ( NNS levels ) ) ) ) ) ) ) ) ) ) ) ) ) )

They would also identify the best way to add programs should the budget come in at higher levels


( S ( NP-SBJ ( NP ( DT This ) ( NN kind ) ) ( PP ( IN of ) ( NP ( NN contingency ) ( NN analysis ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ common ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN war ) ( NN planning ) ) ( CC and ) ( NP ( NN business ) ( NN planning ) ) ) ) ) )

This kind of contingency analysis is common in war planning and business planning


( S ( NP-SBJ ( EX There ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT no ) ( NN reason ) ) ( SBAR ( WHADVP-2 ( IN that ) ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD can ) ( RB not ) ( VP ( VB be ) ( VP ( VBN done ) ( PP-CLR ( IN for ) ( NP ( NN defense ) ( NN planning ) ) ) ) ) ) ) ) ) ) )

There is no reason that it can not be done for defense planning


( S ( NP-SBJ ( CD Two ) ( NNS steps ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ necessary ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB translate ) ( NP ( DT this ) ( NN idea ) ) ( PP-CLR ( IN into ) ( NP ( NN action ) ) ) ) ) ) ) )

Two steps are necessary to translate this idea into action


( S ( NP-SBJ ( NN Step ) ( CD 1 ) ) ( VP ( VBZ cleans ) ( PRT ( RP up ) ) ( NP ( PRP$ our ) ( NNS books ) ) ) )

Step 1 cleans up our books


( S ( NP-SBJ ( PRP$ Our ) ( JJ five-year ) ( NN plan ) ) ( VP ( VBZ contains ) ( NP ( NP ( CD three ) ( NN accounting ) ( NNS devices ) ) ( PRN ( NP ( NP ( JJ negative ) ( NN money ) ) ( NP ( DT an ) ( ADJP ( JJ above ) ( NN guidance ) ) ( NN management ) ( NN reserve ) ) ( CC and ) ( NP ( JJ optimistic ) ( NN inflation ) ( NNS estimates ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP understate ) ( NP ( NP ( DT the ) ( NN spending ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP Pentagon ) ) ( VP ( VBZ has ) ( VP ( VBN committed ) ( NP ( PRP itself ) ) ( PP-CLR ( TO to ) ) ( PP-EXT ( IN by ) ( NP ( QP ( RB almost ) ( CD 100 ) ( CD billion ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Our five-year plan contains three accounting devices negative money an above guidance management reserve and optimistic inflation estimates which understate the spending the Pentagon has committed itself to by almost 100 billion


( S ( NP-SBJ-95 ( JJ Negative ) ( NN money ) ) ( VP ( VBD was ) ( VP ( VBN invented ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB make ) ( S ( NP-SBJ ( DT the ) ( CD 1990-94 ) ( CD Five ) ( NN Year ) ( NN Defense ) ( NN Plan ) ) ( VP ( VB conform ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NNS numbers ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( NNP President ) ( NNP Reagan ) ( POS 's ) ) ( JJ final ) ( NN budget ) ( NN submission ) ) ( PP ( TO to ) ( NP ( NNP Congress ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Negative money was invented in 1988 to make the 1990-94 Five Year Defense Plan conform to the numbers in President Reagan 's final budget submission to Congress


( S ( NP-SBJ ( DT That ) ( NN plan ) ) ( VP ( VBD exceeded ) ( NP ( NP ( DT the ) ( NNS numbers ) ) ( VP ( VBN contained ) ( PP-LOC-CLR ( IN in ) ( NP ( PRP$ his ) ( NN budget ) ( NN message ) ) ) ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 45 ) ( CD billion ) ) ) ) ) )

That plan exceeded the numbers contained in his budget message by 45 billion


( S ( S-PRP ( VP ( TO To ) ( VP ( VB make ) ( S ( NP-SBJ ( DT the ) ( NNS books ) ) ( VP ( VB balance ) ( SBAR-ADV ( IN as ) ( S ( VP ( VBZ is ) ( VP ( VBN required ) ( PP ( IN by ) ( NP-LGS ( NN law ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-3 ( NN somebody ) ) ( VP ( VBD invented ) ( NP ( NP ( DT a ) ( JJ new ) ( NN budget ) ( NN line ) ( NN item ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( ADVP ( RB simply ) ) ( VP ( VBD subtracted ) ( NP ( QP ( CD 45 ) ( CD billion ) ) ) ) ) ) ) ) )

To make the books balance as is required by law somebody invented a new budget line item that simply subtracted 45 billion


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBZ is ) ( VP ( VBN known ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Pentagon ) ) ) ( PP-CLR ( IN as ) ( NP ( DT the ) ( JJ negative ) ( NN wedge ) ) ) ) ) )

It is known in the Pentagon as the negative wedge


( S ( NP-SBJ ( DT The ) ( NNP Pentagon ) ) ( VP ( VBZ argues ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ negative ) ( NN wedge ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJ net ) ( NN effect ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( CD 22 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( RB as-yet ) ( JJ unidentified ) ( NN procurement ) ( NNS reductions ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( NP-SBJ-4 ( PRP it ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB find ) ( PP-TMP ( IN in ) ( NP ( JJ future ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( QP ( CD 23 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NP ( DT an ) ( ADJP ( JJ above ) ( NN guidance ) ) ( NN management ) ( NN reserve ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ accounts ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ undefined ) ( NNS programs ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD will ) ( VP ( VB materialize ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN future ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Pentagon argues that the negative wedge is the net effect of 22 billion in the as-yet unidentified procurement reductions that it intends to find in future years and 23 billion in an above guidance management reserve that accounts for undefined programs that will materialize in the future


( S ( NP-SBJ ( DT The ) ( CD 1990 ) ( NN plan ) ) ( ADVP ( RB also ) ) ( VP ( VBZ assumes ) ( SBAR ( S ( NP-SBJ ( NN inflation ) ) ( VP ( MD will ) ( VP ( VB decline ) ( PP-DIR ( TO to ) ( NP ( CD 1.7 ) ( NN % ) ) ) ( PP-TMP ( IN by ) ( NP ( CD 1994 ) ) ) ) ) ) ) ) )

The 1990 plan also assumes inflation will decline to 1.7 % by 1994


( S ( NP-SBJ ( NP ( JJS Most ) ( NNS forecasters ) ) ( PP ( VBG including ) ( NP ( NP ( DT those ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Congressional ) ( NNP Budget ) ( NNP Office ) ) ) ) ) ) ( VP ( VBP assume ) ( SBAR ( S ( NP-SBJ ( NN inflation ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( QP ( IN in ) ( NN excess ) ( IN of ) ( CD 4 ) ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT each ) ) ( PP ( IN of ) ( NP ( DT those ) ( CD five ) ( NNS years ) ) ) ) ) ) ) ) ) ) )

Most forecasters including those in the Congressional Budget Office assume inflation will be in excess of 4 % in each of those five years


( S ( PP ( IN At ) ( NP ( DT that ) ( NN rate ) ) ) ( NP-SBJ-1 ( DT the ) ( NN defense ) ( NN plan ) ) ( VP ( VBZ is ) ( VP ( VBN underfunded ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 48 ) ( CD billion ) ) ) ) ) ) )

At that rate the defense plan is underfunded by 48 billion


( S ( PP-MNR ( IN By ) ( S-NOM ( VP ( VP ( VBG adding ) ( NP ( DT the ) ( JJ negative ) ( NN wedge ) ) ) ( CC and ) ( VP ( VBG recalculating ) ( NP ( DT the ) ( VBG remaining ) ( NN program ) ) ( S-ADV ( VP ( VBG using ) ( NP ( DT a ) ( ADJP ( RBR more ) ( JJ probable ) ) ( NN inflation ) ( NN estimate ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP arrive ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( JJ baseline ) ( NN program ) ) ( VP ( VBG costing ) ( NP ( QP ( CD 1.7 ) ( CD trillion ) ) ) ( PP-TMP ( IN between ) ( NP ( CD 1990 ) ( CC and ) ( CD 1994 ) ) ) ) ) ) ) )

By adding the negative wedge and recalculating the remaining program using a more probable inflation estimate we arrive at a baseline program costing 1.7 trillion between 1990 and 1994


( S ( NP-SBJ ( NN Step ) ( CD 2 ) ) ( VP ( VBZ examines ) ( SBAR ( SBAR ( WHADVP-1 ( WRB how ) ) ( S ( NP-SBJ ( CD four ) ( ADJP ( RB progressively ) ( JJR lower ) ) ( NN budget ) ( NNS scenarios ) ) ( VP ( MD would ) ( VP ( VB change ) ( NP ( DT the ) ( NN baseline ) ) ) ) ) ) ( CC and ) ( SBAR ( WHADVP-2 ( WRB how ) ) ( S ( NP-SBJ ( DT these ) ( NNS changes ) ) ( VP ( MD would ) ( VP ( VB affect ) ( NP ( PRP$ our ) ( JJ national ) ( NN security ) ) ) ) ) ) ) ) )

Step 2 examines how four progressively lower budget scenarios would change the baseline and how these changes would affect our national security


( S ( NP-SBJ ( NP ( DT The ) ( NN graph ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN right ) ) ) ( PRN ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ assumes ) ( NP ( NP ( DT a ) ( ADJP ( CD 4 ) ( NN % ) ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NN inflation ) ) ) ) ) ) ) ) ) ( VP ( VBZ places ) ( NP ( DT these ) ( NNS scenarios ) ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NN context ) ) ( PP ( IN of ) ( NP ( NP ( JJ recent ) ( NNS appropriations ) ) ( PRN ( S ( VP ( VB see ) ( NP ( NP ( VBG accompanying ) ( NN illustration ) ) ( NP-LOC ( NP ( NNP WSJ ) ) ( NP-TMP ( NNP Oct. ) ( CD 30 ) ( CD 1989 ) ) ) ) ) ) ) ) ) ) ) ) )

The graph on the right which assumes a 4 % rate of inflation places these scenarios in the context of recent appropriations see accompanying illustration WSJ Oct. 30 1989


( S ( VP ( VB Note ) ( SBAR ( WHADVP-1 ( WRB how ) ) ( S ( NP-SBJ ( DT the ) ( NN baseline ) ( NN program ) ) ( VP ( VBZ assumes ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( JJ future ) ( NNS appropriations ) ) ) ) ) ) ) ) )

Note how the baseline program assumes a sharp increase in future appropriations


( S ( NP-SBJ ( NN Step ) ( CD 2 ) ) ( VP ( MD will ) ( VP ( VB answer ) ( NP ( NP ( DT the ) ( NN question ) ) ( SBARQ ( WHNP-1 ( WP What ) ) ( S ( VP ( VBZ happens ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT these ) ( NNS increases ) ) ( VP ( VBP do ) ( RB not ) ( VP ( VB materialize ) ) ) ) ) ) ) ) ) ) ) )

Step 2 will answer the question What happens if these increases do not materialize


( S ( S ( NP-SBJ ( NP ( NN Scenario ) ( CD 1 ) ) ( VP ( VBN known ) ( PP-CLR ( IN as ) ( NP ( DT the ) ( NX-TTL ( JJ Constant ) ( NN Dollar ) ( NN Freeze ) ) ) ) ) ) ( VP ( VBZ reimburses ) ( NP ( DT the ) ( NNP Pentagon ) ) ( PP-CLR ( IN for ) ( NP ( NN inflation ) ) ( ADVP ( RB only ) ) ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ slopes ) ( ADVP-DIR ( RB upward ) ) ( PP ( IN at ) ( NP ( NP ( CD 4 ) ( NN % ) ) ( PP ( IN per ) ( NP ( NN year ) ) ) ) ) ) ) )

Scenario 1 known as the Constant Dollar Freeze reimburses the Pentagon for inflation only it slopes upward at 4 % per year


( S ( S ( NP-SBJ ( DT This ) ( NN scenario ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT the ) ( JJ rough ) ( NN position ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NNP Senate ) ) ) ) ( PP-TMP ( IN since ) ( NP ( CD 1985 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ reduces ) ( NP ( DT the ) ( NN baseline ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 106 ) ( CD billion ) ) ) ) ( PP-TMP ( IN between ) ( NP ( CD 1990 ) ( CC and ) ( CD 1994 ) ) ) ) ) )

This scenario has been the rough position of the U.S. Senate since 1985 and it reduces the baseline by 106 billion between 1990 and 1994


( S ( NP-SBJ ( NP ( NN Scenario ) ( CD 3 ) ) ( NP ( DT the ) ( NX-TTL ( JJ Current ) ( NN Dollar ) ( NN Freeze ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT the ) ( JJ approximate ) ( NN position ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP House ) ) ( PP ( IN of ) ( NP ( NNP Representatives ) ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( QP ( RB about ) ( CD four ) ) ( NNS years ) ) ) ) ) )

Scenario 3 the Current Dollar Freeze has been the approximate position of the House of Representatives for about four years


( S ( NP-SBJ ( PRP It ) ) ( VP ( VP ( VBZ freezes ) ( NP ( DT the ) ( NN budget ) ) ( PP-CLR ( IN at ) ( NP ( PRP$ its ) ( JJ current ) ( NN level ) ) ) ) ( CC and ) ( VP ( VBZ forces ) ( S ( NP-SBJ ( DT the ) ( NNP Pentagon ) ) ( VP ( TO to ) ( VP ( VB eat ) ( NP ( NP ( DT the ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( NN inflation ) ) ) ) ( PP-TMP ( IN until ) ( NP ( CD 1994 ) ) ) ) ) ) ) ) )

It freezes the budget at its current level and forces the Pentagon to eat the effects of inflation until 1994


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ reduces ) ( NP ( DT the ) ( NN baseline ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 229 ) ( CD billion ) ) ) ) ) )

This reduces the baseline by 229 billion


( S ( S ( NP-SBJ ( NN Scenario ) ( CD 2 ) ) ( VP ( VBZ extends ) ( NP ( NP ( DT the ) ( JJ recent ) ( NNS compromises ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NNP House ) ) ( CC and ) ( NP ( DT the ) ( NNP Senate ) ) ) ) ) ) ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ splits ) ( NP ( NP ( DT the ) ( NN difference ) ) ( PP-LOC ( IN between ) ( NP ( NNS Scenarios ) ( CD 1 ) ( CC and ) ( CD 3 ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG increasing ) ( NP ( DT the ) ( NN budget ) ) ( PP ( IN at ) ( NP ( NP ( CD 2 ) ( NN % ) ) ( PP ( IN per ) ( NP ( NN year ) ) ) ) ) ) ) ) ) ) )

Scenario 2 extends the recent compromises between the House and the Senate it splits the difference between Scenarios 1 and 3 by increasing the budget at 2 % per year


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ reduces ) ( NP ( DT the ) ( NN baseline ) ) ( PP-EXT ( IN by ) ( NP ( QP ( CD 169 ) ( CD billion ) ) ) ) ) )

It reduces the baseline by 169 billion


( S ( ADVP-TMP ( RB Finally ) ) ( NP-SBJ ( NN Scenario ) ( CD 4 ) ) ( VP ( VBZ reduces ) ( NP ( DT the ) ( NN budget ) ) ( PP-EXT ( IN by ) ( NP ( NP ( NP ( CD 2 ) ( NN % ) ) ( PP ( IN per ) ( NP ( NN year ) ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ next ) ( CD five ) ( NNS years ) ) ) ( NP-1 ( NP ( DT a ) ( JJ total ) ( NN reduction ) ) ( PP ( IN of ) ( NP ( QP ( CD 287 ) ( CD billion ) ) ) ) ) ) )

Finally Scenario 4 reduces the budget by 2 % per year for the next five years a total reduction of 287 billion


( S ( NP-SBJ-1 ( DT This ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN thought ) ( PP-CLR ( IN of ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( JJ pessimistic ) ( NN prediction ) ) ( VP ( ADVP ( RB perhaps ) ) ( VBN driven ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT the ) ( NN sequestering ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Gramm-Rudman ) ( NN deficit ) ( NN reduction ) ( NN law ) ) ) ) ( CC or ) ( ADVP ( RB possibly ) ) ( NP ( NP ( DT a ) ( NN relaxation ) ) ( PP ( IN of ) ( NP ( NP ( NNS tensions ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Soviet ) ( NNP Union ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This can be thought of as a pessimistic prediction perhaps driven by the sequestering effects of the Gramm-Rudman deficit reduction law or possibly a relaxation of tensions with the Soviet Union


( S ( NP-SBJ-1 ( NP ( DT The ) ( JJ strategic ) ( NNS planners ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP Joint ) ( NNPS Chiefs ) ) ( PP ( IN of ) ( NP ( NNP Staff ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB construct ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ effective ) ) ( NN defense ) ( NN program ) ) ( PP ( IN for ) ( NP ( DT each ) ( NN scenario ) ) ) ) ( S-ADV ( VP ( VP ( VBG maximizing ) ( NP ( NNS strengths ) ) ) ( CC and ) ( VP ( VBG minimizing ) ( NP ( NNS weaknesses ) ) ) ) ) ) ) )

The strategic planners in the Joint Chiefs of Staff would construct the most effective defense program for each scenario maximizing strengths and minimizing weaknesses


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( MD would ) ( VP ( VB conclude ) ( NP ( PRP$ their ) ( NNS efforts ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG producing ) ( NP ( NP ( DT a ) ( JJ comprehensive ) ( NN net ) ( NN assessment ) ) ( PP ( IN for ) ( NP ( DT each ) ( NN plan ) ) ) ( PRN ( PP ( VBG including ) ( NP ( NP ( NP ( DT the ) ( NNS assumptions ) ) ( VP ( VBN made ) ) ) ( NP ( NP ( DT an ) ( NN analysis ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNS deficiencies ) ( CC and ) ( NNS limitations ) ) ) ) ( NP ( NP ( DT the ) ( NN impact ) ) ( PP ( IN on ) ( NP ( JJ national ) ( NN security ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJS best ) ( NN strategy ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG working ) ( PP-CLR ( IN around ) ( NP ( DT these ) ( NNS limitations ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They would conclude their efforts by producing a comprehensive net assessment for each plan including the assumptions made an analysis of its deficiencies and limitations the impact on national security and the best strategy for working around these limitations


( S ( NP-SBJ-1 ( DT This ) ( NN exercise ) ) ( VP ( MD would ) ( VP ( VB reveal ) ( NP ( NP ( DT the ) ( JJ true ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ particular ) ( NN program ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG forcing ) ( S ( NP-SBJ ( DT the ) ( NNS strategists ) ) ( VP ( TO to ) ( VP ( VB make ) ( NP ( JJ hard ) ( NNS decisions ) ) ) ) ) ) ) ) ) ) )

This exercise would reveal the true cost of a particular program by forcing the strategists to make hard decisions


( S ( SBAR-ADV ( IN If ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP choose ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( NP ( DT the ) ( NNP B-2 ) ( NNP Stealth ) ( NN bomber ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP they ) ) ( VP ( MD would ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB sacrifice ) ( NP ( NP ( ADVP ( JJR more ) ( CC and ) ( JJR more ) ) ( JJ other ) ( NNS programs ) ) ( PRN ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NN carrier ) ( NNS battlegroups ) ) ( CC or ) ( NP ( NN army ) ( NNS divisions ) ) ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD moved ) ( PP-TMP ( IN toward ) ( NP ( JJR lower ) ( NN budget ) ( NNS levels ) ) ) ) ) ) ) ) ) ) ) )

If for example they choose to keep the B-2 Stealth bomber they would have to sacrifice more and more other programs such as carrier battlegroups or army divisions as they moved toward lower budget levels


( S ( NP-SBJ-2 ( DT These ) ( NNS trade-offs ) ) ( VP ( MD would ) ( VP ( VB evolve ) ( NP ( NNS priorities ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG revealing ) ( SBAR-NOM ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP B-2 ) ) ) ) ( VP ( VBD became ) ( ADJP-PRD ( JJ prohibitive ) ) ) ) ) ) ) ) ) ) )

These trade-offs would evolve priorities by revealing when the cost of the B-2 became prohibitive


( S ( NP-SBJ-1 ( DT Some ) ) ( VP ( MD may ) ( VP ( VB be ) ( VP ( VBN tempted ) ( S ( VP ( TO to ) ( VP ( VB argue ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN idea ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ strategic ) ( NN review ) ) ) ) ( ADVP ( RB merely ) ) ( VP ( VBZ resurrects ) ( NP ( NP ( DT the ) ( JJ infamous ) ( NNP Zero-Based ) ( NNP Budgeting ) ( PRN ( NNP ZBB ) ) ( NN concept ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Carter ) ( NN administration ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some may be tempted to argue that the idea of a strategic review merely resurrects the infamous Zero-Based Budgeting ZBB concept of the Carter administration


( S ( CC But ) ( NP-SBJ ( NNP ZBB ) ) ( VP ( VP ( VBD did ) ( RB not ) ( VP ( VP ( VB involve ) ( NP ( NP ( DT the ) ( JJ strategic ) ( NNS planners ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP Joint ) ( NNPS Chiefs ) ) ( PP ( IN of ) ( NP ( NNP Staff ) ) ) ) ) ) ) ) ) ( CC and ) ( ADVP ( RB therefore ) ) ( VP ( VBD degenerated ) ( PP-CLR ( IN into ) ( NP ( NP ( DT a ) ( NN bean-counting ) ( NN drill ) ) ( VP ( VBN driven ) ( PP ( IN by ) ( NP-LGS ( NN budget ) ( NNS politics ) ) ) ) ) ) ) ) )

But ZBB did not involve the strategic planners in the Joint Chiefs of Staff and therefore degenerated into a bean-counting drill driven by budget politics


( S ( ADVP ( RB Anyway ) ) ( NP-SBJ ( NP ( NNP ZBB ) ( POS 's ) ) ( NNS procedures ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( RB so ) ( JJ cumbersome ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( NN everyone ) ) ( VP ( VBN involved ) ) ) ( VP ( VBD was ) ( VP ( VBN crushed ) ( PP-LOC-CLR ( IN under ) ( NP ( NP ( DT a ) ( NN burden ) ) ( PP ( IN of ) ( NP ( NNS marginalia ) ) ) ) ) ) ) ) ) ) ) )

Anyway ZBB 's procedures were so cumbersome that everyone involved was crushed under a burden of marginalia


( S ( NP-SBJ ( DT A ) ( JJ strategic ) ( NN review ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB fundamentally ) ( JJ different ) ) ) )

A strategic review is fundamentally different


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN run ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ joint ) ( NNS chiefs ) ) ) ( PP-LOC ( IN under ) ( NP ( NP ( JJ simple ) ( NNS directions ) ) ( S ( VP ( VP ( VB Produce ) ( NP ( NP ( DT the ) ( JJS best ) ( JJ possible ) ( NN force ) ) ( PP ( IN for ) ( NP ( DT each ) ( NN budget ) ( NN scenario ) ) ) ) ) ( CC and ) ( VP ( VB provide ) ( NP ( NP ( DT the ) ( NNP Secretary ) ) ( PP ( IN of ) ( NP ( NNP Defense ) ) ) ) ( PP-CLR ( IN with ) ( NP ( NP ( DT a ) ( JJ comprehensive ) ( JJ net ) ( NN assessment ) ) ( PP ( IN of ) ( SBAR-NOM ( WHADVP-3 ( WRB how ) ) ( S ( NP-SBJ-2 ( DT that ) ( NN force ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB achieve ) ( NP ( NNP U.S. ) ( NNS goals ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It would be run by the joint chiefs under simple directions Produce the best possible force for each budget scenario and provide the Secretary of Defense with a comprehensive net assessment of how that force could be used to achieve U.S. goals


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( MD might ) ( VP ( VB be ) ( VP ( VBN feared ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( ADVP ( RB even ) ) ( VP ( VBG thinking ) ( PP-CLR ( IN about ) ( NP ( JJR lower ) ( NNS budgets ) ) ) ) ) ( VP ( MD will ) ( VP ( VB hurt ) ( NP ( JJ national ) ( NN security ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-2 ( DT the ) ( NN door ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN opened ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ opportunistic ) ( NN budget ) ( NN cutting ) ) ( PP ( IN by ) ( NP ( DT an ) ( JJ irresponsible ) ( NNP Congress ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It might be feared that even thinking about lower budgets will hurt national security because the door will be opened to opportunistic budget cutting by an irresponsible Congress


( S ( S ( NP-SBJ ( DT This ) ( NN argument ) ) ( VP ( VBZ plays ) ( ADVP-MNR ( RB well ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN atmosphere ) ) ( PP ( IN of ) ( NP ( NN gaming ) ( CC and ) ( NN mistrust ) ) ) ( VP ( VBG permeating ) ( NP ( NP ( DT the ) ( NNP Pentagon ) ) ( CC and ) ( NP ( NNP Congress ) ) ) ) ) ) ) ) ( CC and ) ( S ( ADVP ( RB unfortunately ) ) ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( DT some ) ( NN truth ) ) ( PP ( TO to ) ( NP ( PRP it ) ) ) ) ) )

This argument plays well in the atmosphere of gaming and mistrust permeating the Pentagon and Congress and unfortunately there is some truth to it


( S ( CC But ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN end ) ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD must ) ( VP ( VB be ) ( VP ( VBN rejected ) ( PP-PRP ( IN for ) ( NP ( ADJP ( JJ logical ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( JJ moral ) ) ( NNS reasons ) ) ) ) ) ) )

But in the end it must be rejected for logical as well as moral reasons


( S ( S-SBJ ( VP ( TO To ) ( VP ( VB say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Pentagon ) ) ( VP ( MD should ) ( VP ( VB act ) ( ADVP-MNR ( RB irresponsibly ) ) ( SBAR-PRP ( IN because ) ( S ( S-NOM-SBJ ( VP ( VBG acting ) ( ADVP-MNR ( RB responsibly ) ) ) ) ( VP ( MD will ) ( VP ( VB provoke ) ( NP-1 ( NNP Congress ) ) ( PP-CLR ( IN into ) ( S-NOM ( VP ( VBG acting ) ( ADVP-MNR ( RB irresponsibly ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ leads ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NN conclusion ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Pentagon ) ) ( VP ( MD should ) ( VP ( ADVP-MNR ( RB deliberately ) ) ( VB exaggerate ) ( NP ( PRP$ its ) ( NNS needs ) ) ( PP ( IN in ) ( NP ( DT the ) ( JJ national ) ( NN interest ) ) ) ) ) ) ) ( SBAR ( PP ( IN in ) ( NP ( JJ other ) ( NNS words ) ) ) ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ justified ) ) ( PP ( IN in ) ( NP ( S-NOM ( VP ( VBG committing ) ( NP ( DT a ) ( NN crime ) ) ) ) ( PRN ( S-NOM ( VP ( VBG lying ) ( PP-CLR ( TO to ) ( NP ( NNP Congress ) ) ) ) ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB morally ) ( JJ superior ) ) ) ) ) ) ) ) ) ) ) ) )

To say that the Pentagon should act irresponsibly because acting responsibly will provoke Congress into acting irresponsibly leads to the conclusion that the Pentagon should deliberately exaggerate its needs in the national interest in other words that it is justified in committing a crime lying to Congress because it is morally superior


( S ( S ( NP-SBJ ( NNP Strategy ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( DT a ) ( NN game ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NNP Pentagon ) ) ( CC and ) ( NP ( NNP Congress ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN art ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ possible ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN world ) ) ( SBAR ( WHADVP-1 ( WRB where ) ) ( S ( NP-SBJ ( NNS constraints ) ) ( VP ( VBP force ) ( S ( NP-SBJ ( PRP us ) ) ( VP ( TO to ) ( VP ( VB choose ) ( PP-CLR ( IN between ) ( NP ( ADJP ( JJ unpleasant ) ( CC or ) ( JJ imperfect ) ) ( NNS alternatives ) ) ) ) ) ) ) ) ) ) ) ) ) )

Strategy is not a game between the Pentagon and Congress it is the art of the possible in a world where constraints force us to choose between unpleasant or imperfect alternatives


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP want ) ( NP ( JJ meaningful ) ( NNS priorities ) ) ) ) ) ( NP-SBJ ( PRP we ) ) ( VP ( MD must ) ( VP ( VB understand ) ( NP ( NP ( DT the ) ( NN trade-offs ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP imply ) ) ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP make ) ( NP ( NNS commitments ) ) ) ) ) ) ) )

If we want meaningful priorities we must understand the trade-offs they imply before we make commitments


( S ( S ( NP-SBJ ( NN Strategy ) ) ( VP ( VBZ is ) ( RB not ) ( NP-PRD ( NP ( DT a ) ( JJ separate ) ( NN event ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT an ) ( JJ idealized ) ( NN sequence ) ) ( PP ( IN of ) ( NP ( JJ discrete ) ( NNS events ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN way ) ) ( PP ( IN of ) ( NP ( NN thinking ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ neutralizes ) ( NP ( NP ( NNS threats ) ) ( PP ( TO to ) ( NP ( PRP$ our ) ( NNS interests ) ) ) ) ( PP-MNR ( IN in ) ( NP ( NP ( DT a ) ( NN manner ) ) ( ADJP ( JJ consistent ) ( PP ( IN with ) ( NP ( PRP$ our ) ( ADJP ( JJ financial ) ( JJ cultural ) ( CC and ) ( JJ physical ) ) ( NNS limitations ) ) ) ) ) ) ) ) ) ) ) ) )

Strategy is not a separate event in an idealized sequence of discrete events it is a way of thinking that neutralizes threats to our interests in a manner consistent with our financial cultural and physical limitations


( S ( NP-SBJ ( NNP Mr. ) ( NNP Spinney ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ permanent ) ( NNP Pentagon ) ( NN official ) ) ) )

Mr. Spinney is a permanent Pentagon official


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ condensed ) ( NN version ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN essay ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD will ) ( VP ( VB appear ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP January ) ( NN issue ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Naval ) ( NNP Institute ) ( NNP Proceedings ) ) ) ) ) ) ) ) ) ) ) ) ) )

This is a condensed version of an essay that will appear in the January issue of the Naval Institute Proceedings


( S ( NP-SBJ ( NP ( DT The ) ( NNS views ) ) ( VP ( VBN expressed ) ) ) ( VP ( VB do ) ( RB not ) ( VP ( VB reflect ) ( NP ( NP ( DT the ) ( JJ official ) ( NN policy ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Department ) ) ( PP ( IN of ) ( NP ( NNP Defense ) ) ) ) ) ) ) ) )

The views expressed do not reflect the official policy of the Department of Defense


( S ( PP-LOC ( IN In ) ( NP ( NNP Bombay ) ( NN stock ) ( NN market ) ( NNS circles ) ) ) ( NP-SBJ ( DT the ) ( NN buzzword ) ) ( VP ( VBZ is ) ( NP-PRD ( JJ mega ) ) ) )

In Bombay stock market circles the buzzword is mega


( S ( NP-SBJ-1 ( QP ( IN At ) ( JJS least ) ( CD 40 ) ) ( NNS companies ) ) ( VP ( VBP are ) ( VP ( VBG coming ) ( PP-DIR ( TO to ) ( NP ( DT the ) ( NN capital ) ( NN market ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( QP ( CD 6 ) ( CD billion ) ) ) ( NP ( NP ( DT an ) ( NN amount ) ) ( VP ( ADVP-TMP ( RB never ) ) ( VBN thought ) ( S ( ADJP-PRD ( JJ possible ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP India ) ) ) ) ) ) ) ) ) ) ) )

At least 40 companies are coming to the capital market to raise 6 billion an amount never thought possible in India


( SINV ( S-TPC-2 ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP talk ) ( NP ( NNS mega-issues ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( ADVP ( RB truly ) ) ( VP ( VBG talking ) ( ADJP-CLR ( JJ mega ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP S.A. ) ( NNP Dave ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Board ) ) ( PP ( IN of ) ( NP ( NNP India ) ) ) ) ) ) ) )

When they talk mega-issues they 're truly talking mega says S.A. Dave chairman of the Securities and Exchange Board of India


( S ( NP-SBJ ( DT The ) ( NN capital ) ( NN market ) ) ( VP ( VBZ is ) ( VP ( VBG booming ) ) ) )

The capital market is booming


( S ( CC But ) ( NP-SBJ ( DT the ) ( NNS mega-issues ) ) ( VP ( VBP are ) ( VP ( VBG raising ) ( NP ( NP ( NNS megaquestions ) ) ( PP ( IN about ) ( NP ( DT the ) ( ADJP ( RB rapidly ) ( VBG evolving ) ) ( JJ Indian ) ( NN capital ) ( NN market ) ) ) ) ) ) )

But the mega-issues are raising megaquestions about the rapidly evolving Indian capital market


( S ( NP-SBJ ( CD One ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN whether ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( JJ enough ) ( NN money ) ( S ( VP ( TO to ) ( VP ( VB fund ) ( NP ( DT the ) ( JJ new ) ( NNS issues ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG depressing ) ( NP ( NN stock ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) )

One is whether there is enough money to fund the new issues without depressing stock trading


( S ( ADVP ( RB Moreover ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( ADJP ( RB relatively ) ( JJ unregulated ) ) ( JJ Indian ) ( NN stock ) ( NNS markets ) ) ) ( NP-SBJ ( NNS investors ) ) ( ADVP-TMP ( RB frequently ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB know ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG getting ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP subscribe ) ( PP-CLR ( TO to ) ( NP ( DT an ) ( NN issue ) ) ) ) ) ) ) ) ) ) ) ) )

Moreover in the relatively unregulated Indian stock markets investors frequently do n't know what they are getting when they subscribe to an issue


( S ( NP-SBJ ( NP ( DT A ) ( NN prospectus ) ) ( PP-LOC ( IN in ) ( NP ( NNP India ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( VP ( VB tell ) ( NP ( DT a ) ( JJ potential ) ( NN investor ) ) ( NP ( JJ much ) ) ) ) )

A prospectus in India does n't always tell a potential investor much


( S ( NP-SBJ-1 ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ large ) ( NNS amounts ) ) ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN raised ) ( PP ( IN by ) ( NP-LGS ( JJ small ) ( NNS firms ) ) ) ) ) ) )

Some of the large amounts are being raised by small firms


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( SBAR-TMP ( RB once ) ( S ( NP-SBJ-1 ( NN money ) ) ( VP ( VBZ is ) ( VP ( VBN raised ) ) ) ) ) ( NP-SBJ ( NNS investors ) ) ( ADVP-TMP ( RB usually ) ) ( VP ( VBP have ) ( NP ( NP ( DT no ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG knowing ) ( SBAR ( WHADVP-3 ( WRB how ) ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN spent ) ) ) ) ) ) ) ) ) ) )

In addition once money is raised investors usually have no way of knowing how it is spent


( S ( NP-SBJ ( DT Some ) ( NNS analysts ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ concerned ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS mega-issues ) ) ( PP-LOC ( IN in ) ( NP ( PDT such ) ( DT an ) ( JJ unregulated ) ( NN environment ) ) ) ) ( VP ( MD could ) ( VP ( VB lead ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( NN mega-crash ) ) ) ) ) ) ) ) ) )

Some analysts are concerned that the mega-issues in such an unregulated environment could lead to a mega-crash


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NNS failures ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( RB much ) ( JJR more ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NNS successes ) ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS mega-projects ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP G.S. ) ( NNP Patel ) ) ( NP ( NP ( DT a ) ( JJ former ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ giant ) ( JJ government-run ) ( JJ mutual ) ( NN fund ) ) ( NP ( NP ( DT the ) ( NNP Unit ) ( NNP Trust ) ) ( PP ( IN of ) ( NP ( NNP India ) ) ) ) ) ) ) ) )

The rate of failures will be much more than the rate of successes in the mega-projects says G.S. Patel a former chairman of the giant government-run mutual fund the Unit Trust of India


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP 're ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( NNS mega-problems ) ) ) ) ) ) ) )

They 're going to have mega-problems


( S ( NP-SBJ ( DT The ) ( JJ Indian ) ( NN stock ) ( NNS markets ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( PP-PRD ( IN on ) ( NP ( DT a ) ( JJ five-year ) ( NN high ) ) ) ( PP ( IN with ) ( NP ( NNS dips ) ( CC and ) ( NNS corrections ) ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ-1 ( NNP Prime ) ( NNP Minister ) ( NNP Rajiv ) ( NNP Gandhi ) ) ( VP ( VBD started ) ( S ( VP ( VBG liberalizing ) ( NP ( NN industry ) ) ) ) ) ) ) ) ) )

The Indian stock markets have been on a five-year high with dips and corrections since Prime Minister Rajiv Gandhi started liberalizing industry


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( JJ last ) ( NN stock ) ( NN market ) ( NN boom ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ( VP ( VBZ seems ) ( ADJP-PRD ( JJ small ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( JJ current ) ( NN rush ) ) ( PP ( TO to ) ( NP ( NN market ) ) ) ) ) ) ) )

But the last stock market boom in 1986 seems small compared with the current rush to market


( S ( NP-SBJ ( NP ( DT The ) ( QP ( CD 6 ) ( CD billion ) ) ) ( SBAR ( WHNP-2 ( IN that ) ) ( S ( NP-SBJ-1 ( QP ( RB some ) ( CD 40 ) ) ( NNS companies ) ) ( VP ( VBP are ) ( VP ( VBG looking ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBG ending ) ( NP-TMP ( NNP March ) ( CD 31 ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ compares ) ( PP-CLR ( IN with ) ( NP ( NP ( QP ( RB only ) ( CD 2.7 ) ( CD billion ) ) ) ( VP ( VBD raised ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN capital ) ( NN market ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ previous ) ( JJ fiscal ) ( NN year ) ) ) ) ) ) ) )

The 6 billion that some 40 companies are looking to raise in the year ending March 31 compares with only 2.7 billion raised on the capital market in the previous fiscal year


( S ( PP-TMP ( IN In ) ( NP ( JJ fiscal ) ( CD 1984 ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Gandhi ) ) ( VP ( VBD came ) ( PP-CLR ( TO to ) ( NP ( NN power ) ) ) ) ) ) ( NP-SBJ-1 ( QP ( RB only ) ( CD 810 ) ( CD million ) ) ) ( VP ( VBD was ) ( VP ( VBN raised ) ) ) )

In fiscal 1984 before Mr. Gandhi came to power only 810 million was raised


( S ( NP-SBJ ( NP ( NP ( NP ( DT This ) ( NN year ) ( POS 's ) ) ( JJS biggest ) ( NN issue ) ) ( NP ( NP ( QP ( CD 570 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ convertible ) ( NNS debentures ) ) ) ) ( PP ( IN by ) ( NP ( NN engineering ) ( NN company ) ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ( NNP Ltd. ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJS largest ) ) ( PP-LOC ( IN in ) ( NP ( JJ Indian ) ( NN history ) ) ) ) ) )

This year 's biggest issue 570 million of convertible debentures by engineering company Larsen & Toubro Ltd. is the largest in Indian history


( S ( S ( CC And ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( DT the ) ( JJ only ) ( JJ giant ) ( NN issue ) ) ) ) ( S ( ADVP ( RB together ) ) ( NP-SBJ ( DT the ) ( JJ top ) ( CD four ) ( NNS issues ) ) ( VP ( MD will ) ( VP ( VB raise ) ( NP ( QP ( CD 1.3 ) ( CD billion ) ) ) ) ) ) )

And it is n't the only giant issue together the top four issues will raise 1.3 billion


( S ( NP-SBJ ( NP ( JJ Convertible ) ( NNS debentures ) ) ( PRN ( NP ( NP ( NNS bonds ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD can ) ( ADVP-TMP ( RB later ) ) ( VP ( VB be ) ( VP ( VBN converted ) ( PP-CLR ( IN into ) ( NP ( NN equity ) ( NNS shares ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( DT the ) ( ADJP ( RBS most ) ( JJ popular ) ) ( NN instrument ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( SBAR-ADV ( IN though ) ( S ( NP-SBJ ( JJ many ) ( NNS companies ) ) ( VP ( VBP are ) ( ADVP ( RB also ) ) ( VP ( VBG selling ) ( NP ( NP ( JJ nonconvertible ) ( NNS bonds ) ) ( CC or ) ( NP ( NN equity ) ( NNS shares ) ) ) ) ) ) ) ) )

Convertible debentures bonds that can later be converted into equity shares are the most popular instrument this year though many companies are also selling nonconvertible bonds or equity shares


( S ( NP-SBJ-1 ( DT These ) ( NNS mega-issues ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN propelled ) ( PP ( IN by ) ( NP-LGS ( NP ( CD two ) ( NNS factors ) ) ( ADJP ( JJ economic ) ( CC and ) ( JJ political ) ) ) ) ) ) ) )

These mega-issues are being propelled by two factors economic and political


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( NN past ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ socialist ) ( NNS policies ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN government ) ) ) ) ( VP ( ADVP-MNR ( RB strictly ) ) ( VBD limited ) ( NP ( NP ( DT the ) ( NN size ) ) ( PP ( IN of ) ( NP ( JJ new ) ( NX ( NX ( NN steel ) ( NNS mills ) ) ( NX ( NN petrochemical ) ( NNS plants ) ) ( NX ( NN car ) ( NNS factories ) ) ( CC and ) ( NX ( JJ other ) ( JJ industrial ) ( NNS concerns ) ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VP ( VB conserve ) ( NP ( NNS resources ) ) ) ( CC and ) ( VP ( VB restrict ) ( NP ( NP ( DT the ) ( NNS profits ) ) ( SBAR ( S ( NP-SBJ ( NNS businessmen ) ) ( VP ( MD could ) ( VP ( VB make ) ) ) ) ) ) ) ) ) ) ) )

In the past the socialist policies of the government strictly limited the size of new steel mills petrochemical plants car factories and other industrial concerns to conserve resources and restrict the profits businessmen could make


( S ( PP-PRP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( NN industry ) ) ( VP ( VBD operated ) ( PP-CLR ( IN out ) ( PP ( IN of ) ( NP ( JJ small ) ( JJ expensive ) ( ADJP ( RB highly ) ( JJ inefficient ) ) ( JJ industrial ) ( NNS units ) ) ) ) ) )

As a result industry operated out of small expensive highly inefficient industrial units


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Gandhi ) ) ( VP ( VBD came ) ( PP-CLR ( TO to ) ( NP ( NN power ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD ushered ) ( PRT ( RP in ) ) ( NP ( NP ( JJ new ) ( NNS rules ) ) ( PP ( IN for ) ( NP ( NN business ) ) ) ) ) )

When Mr. Gandhi came to power he ushered in new rules for business


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN industry ) ) ( VP ( MD should ) ( VP ( VP ( VB build ) ( NP ( NNS plants ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ same ) ( NN scale ) ) ( PP ( IN as ) ( NP ( NP ( DT those ) ) ( ADVP-LOC ( IN outside ) ( NP ( NNP India ) ) ) ) ) ) ) ) ( CC and ) ( VP ( NN benefit ) ( PP-CLR ( IN from ) ( NP ( NP ( NNS economies ) ) ( PP ( IN of ) ( NP ( NN scale ) ) ) ) ) ) ) ) ) ) ) )

He said industry should build plants on the same scale as those outside India and benefit from economies of scale


( S-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN output ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB too ) ( JJ great ) ( PP ( IN for ) ( NP ( DT the ) ( JJ domestic ) ( NN market ) ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( NP-SBJ ( NNS companies ) ) ( VP ( MD should ) ( VP ( VB export ) ) ) )

If the output was too great for the domestic market he said companies should export


( S ( S ( NP-SBJ-2 ( NP ( NNP India ) ( POS 's ) ) ( JJ overregulated ) ( NNS businessmen ) ) ( VP ( VBD had ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN persuaded ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-3 ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBD started ) ( S ( VP ( TO to ) ( VP ( VB think ) ( ADJP-CLR ( JJ big ) ) ) ) ) ) ) ) )

India 's overregulated businessmen had to be persuaded but they have started to think big


( S ( S ( NP-SBJ ( NP ( DT Some ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS projects ) ) ) ( VP ( VBG being ) ( VP ( JJ funded ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ new ) ( NNS issues ) ) ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ( NNS fruits ) ) ( PP ( IN of ) ( NP ( NP ( NNP Mr. ) ( NNP Gandhi ) ( POS 's ) ) ( NN policy ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP require ) ( NP ( NP ( JJR more ) ( JJ capital ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJR smaller ) ( JJ industrial ) ( NNS units ) ) ( VP ( VBN built ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ) ) ) ) ) ) ) ) )

Some of the projects being funded by the new issues are the first fruits of Mr. Gandhi 's policy and they require more capital than the smaller industrial units built in the past


( S ( NP-SBJ ( DT The ) ( JJ industrial ) ( NN revolution ) ) ( VP ( VBZ has ) ( VP ( VBN produced ) ( NP ( NP ( DT an ) ( NN explosion ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN capital ) ( NN market ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( ADJP ( RB far ) ( JJR cheaper ) ) ( NN source ) ) ( PP ( IN of ) ( NP ( NNS funds ) ) ) ( PP ( IN than ) ( NP ( NP ( JJ government-controlled ) ( NNS banks ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( NP ( NN interest ) ( NNS rates ) ) ( PP ( IN for ) ( NP ( JJ prime ) ( NNS borrowers ) ) ) ) ( VP ( VBP are ) ( NP-PRD ( QP ( RB around ) ( CD 16 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The industrial revolution has produced an explosion in the capital market which is a far cheaper source of funds than government-controlled banks where interest rates for prime borrowers are around 16 %


( S ( NP-SBJ ( NP ( DT The ) ( JJ second ) ( NN factor ) ) ( VP ( VBG spurring ) ( NP ( NNS mega-issues ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ political ) ) ) )

The second factor spurring mega-issues is political


( S ( S ( NP-SBJ ( NNP Mr. ) ( NNP Gandhi ) ) ( VP ( VBZ has ) ( VP ( VBN called ) ( NP ( JJ general ) ( NNS elections ) ) ( PP ( IN for ) ( NP ( NNP November ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ many ) ( NNS businessmen ) ) ( VP ( VBP fear ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( PRP he ) ) ( CC and ) ( NP ( PRP$ his ) ( NP ( NNP Congress ) ( PRN ( NNP I ) ) ( NNP Party ) ) ) ) ( VP ( MD will ) ( VP ( VB lose ) ) ) ) ) ) ) )

Mr. Gandhi has called general elections for November and many businessmen fear that he and his Congress I Party will lose


( S ( NP-SBJ ( DT Some ) ( NNS companies ) ) ( VP ( VBP are ) ( VP ( VBG raising ) ( NP ( NN money ) ) ( PP ( IN in ) ( NP ( NP ( NN anticipation ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN government ) ) ( ADJP ( ADJP ( ADJP ( RBR less ) ( JJ predictable ) ) ( PP ( IN than ) ( NP ( NNP Mr. ) ( NNP Gandhi ) ( POS 's ) ) ) ) ( CC and ) ( ADJP ( ADVP ( RB possibly ) ) ( RBR more ) ( JJ restrictive ) ) ) ) ) ) ) ) ) )

Some companies are raising money in anticipation of a government less predictable than Mr. Gandhi 's and possibly more restrictive


( S ( NP-SBJ ( DT The ) ( JJ buoyant ) ( NNP Bombay ) ( NN rumor ) ( NN mill ) ) ( ADVP ( RB also ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN money ) ) ( VP ( VBN raised ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ current ) ( NN spate ) ) ( PP ( IN of ) ( NP ( NNS issues ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( PP-CLR ( IN as ) ( NP ( NN campaign ) ( NNS donations ) ) ) ( PP-TMP ( IN before ) ( NP ( DT the ) ( NNS elections ) ) ) ) ) ) ) ) ) )

The buoyant Bombay rumor mill also says that some of the money raised in the current spate of issues will be used as campaign donations before the elections


( S ( S ( NP-SBJ ( DT No ) ( NN one ) ) ( VP ( VBZ admits ) ( PP-CLR ( TO to ) ( NP ( NN anything ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( NNP India ) ( POS 's ) ) ( NNS industrialists ) ) ( VP ( VBP have ) ( NP ( NP ( DT a ) ( NN history ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( NP ( JJ under-the-table ) ( NN campaign ) ( NNS donations ) ) ) ) ) ) ) ) )

No one admits to anything but India 's industrialists have a history of making under-the-table campaign donations


( S ( ADVP-TMP ( RB So ) ( RB far ) ) ( NP-SBJ ( DT the ) ( NNS mega-issues ) ) ( VP ( VBP are ) ( NP-PRD ( DT a ) ( NN hit ) ) ( PP ( IN with ) ( NP ( NNS investors ) ) ) ) )

So far the mega-issues are a hit with investors


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ-1 ( NP ( NP ( NNP Tata ) ( NNP Iron ) ( CC & ) ( NNP Steel ) ( NNP Co. ) ( POS 's ) ) ( NN offer ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 355 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ convertible ) ( NNS debentures ) ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN oversubscribed ) ) ) )

Earlier this year Tata Iron & Steel Co. 's offer of 355 million of convertible debentures was oversubscribed


( S ( NP-SBJ ( NP ( NNP Essar ) ( NNP Gujarat ) ( NNP Ltd. ) ) ( NP ( DT a ) ( JJ marine ) ( NN construction ) ( NN company ) ) ) ( VP ( VBD had ) ( NP ( JJ similar ) ( NN success ) ) ( PP ( IN with ) ( NP ( DT a ) ( ADJP ( RB slightly ) ( JJR smaller ) ) ( NN issue ) ) ) ) )

Essar Gujarat Ltd. a marine construction company had similar success with a slightly smaller issue


( S ( S ( NP-SBJ-2 ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ) ( VP ( VBD started ) ( S ( VP ( VBG accepting ) ( NP ( NP ( NNS applications ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( JJ giant ) ( NN issue ) ) ) ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN month ) ) ) ) ( S ( NP-SBJ ( NNS bankers ) ( CC and ) ( NNS analysts ) ) ( VP ( VBP expect ) ( S ( NP-SBJ-3 ( PRP it ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN oversubscribed ) ) ) ) ) ) ) )

Larsen & Toubro started accepting applications for its giant issue earlier this month bankers and analysts expect it to be oversubscribed


( SINV ( S-PRD-TPC-1 ( ADVP-TMP ( RB Still ) ) ( VP ( TO to ) ( VP ( VB come ) ) ) ) ( VP ( VBP are ) ) ( NP-SBJ-2 ( NP ( JJ big ) ( NNS issues ) ) ( PP ( IN by ) ( NP ( NP ( NP ( NNP Bindal ) ( NNP Agro ) ( NNP Chem ) ( NNP Ltd. ) ) ( NP ( DT a ) ( NN petrochemical ) ( CC and ) ( NN agrochemical ) ( NN company ) ) ) ( CC and ) ( NP ( NP ( NP ( NNP Usha ) ( NNP Rectifier ) ( NNP Corp ) ) ( PRN ( NP-LOC ( NNP India ) ) ) ) ( NP ( DT a ) ( NN semiconductor ) ( NN maker ) ) ) ) ) ) )

Still to come are big issues by Bindal Agro Chem Ltd. a petrochemical and agrochemical company and Usha Rectifier Corp India a semiconductor maker


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ-1 ( JJ many ) ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VBG selling ) ( NP ( NP ( NNS parts ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS portfolios ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB buy ) ( NP ( DT the ) ( JJ new ) ( NNS issues ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNS prices ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNP India ) ( POS 's ) ) ( CD 16 ) ( NN stock ) ( NNS exchanges ) ) ) ) ( VP ( VBP are ) ( VP ( VBG holding ) ( PRT ( RP up ) ) ( ADVP-TMP ( RB so ) ( RB far ) ) ) ) )

While many investors are selling parts of their portfolios to buy the new issues prices on India 's 16 stock exchanges are holding up so far


( S-2 ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB lead ) ( PP-DIR ( TO to ) ( NP ( NP ( DT any ) ( NN chaos ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ secondary ) ( NN market ) ) ) ( PRN ( SINV ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Patel ) ) ) ) ( NP ( RB only ) ( DT a ) ( NN sagging ) ( NN tendency ) ) ) ) ) ) ) ) ) ) )

I do n't think it will lead to any chaos in the secondary market says Mr. Patel only a sagging tendency


( SINV ( VP ( VBZ Says ) ) ( NP-SBJ ( NP ( NNP M.J. ) ( NNP Pherwani ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Unit ) ( NNP Trust ) ) ( PP ( IN of ) ( NP ( NNP India ) ) ) ) ) ) ) ( S-2 ( NP-SBJ-1 ( DT The ) ( NNS markets ) ) ( VP ( VBP are ) ( VP ( VBN headed ) ( PP-CLR ( IN for ) ( NP ( NP ( NN growth ) ) ( ADJP ( ADJP ( ADJP ( JJ unheard ) ( IN of ) ) ( CC and ) ( ADJP ( JJ unseen ) ) ) ( ADVP-TMP ( RB before ) ) ) ) ) ) ) ) )

Says M.J. Pherwani chairman of the Unit Trust of India The markets are headed for growth unheard of and unseen before


( SINV ( SINV ( CC But ) ( PP ( IN with ) ( NP ( NN growth ) ) ) ( VBP come ) ( NP-SBJ ( NN growing ) ( NNS pains ) ) ) ( CC and ) ( SINV ( ADVP-TMP ( RB never ) ) ( VBZ has ) ( NP-SBJ ( DT this ) ) ( VP ( VBN been ) ( ADJP-PRD ( ADJP ( JJR clearer ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ Indian ) ( NN capital ) ( NN market ) ) ) ( PP-1 ( IN than ) ( ADVP-TMP ( RB now ) ) ) ) ) )

But with growth come growing pains and never has this been clearer on the Indian capital market than now


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( NN past ) ) ) ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBD controlled ) ( NP ( DT the ) ( NNS markets ) ) ( ADVP-MNR ( RB indirectly ) ) ( PP-MNR ( IN through ) ( NP ( NP ( PRP$ its ) ( JJ tight ) ( NN grip ) ) ( PP ( IN on ) ( NP ( NP ( NN industry ) ) ( NP ( PRP itself ) ) ) ) ) ) ) )

In the past the government controlled the markets indirectly through its tight grip on industry itself


( S ( S ( NP-SBJ ( JJ Various ) ( NNS ministries ) ) ( VP ( VBD decided ) ( NP ( NP ( NP ( DT the ) ( NNS products ) ) ( SBAR ( S ( NP-SBJ ( NNS businessmen ) ) ( VP ( MD could ) ( VP ( VB produce ) ) ) ) ) ) ( CC and ) ( SBAR-NOM ( WHNP ( WRB how ) ( JJ much ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ government-owned ) ( NNS banks ) ) ( VP ( VP ( VBD controlled ) ( NP ( NP ( DT the ) ( NN financing ) ) ( PP ( IN of ) ( NP ( NNS projects ) ) ) ) ) ( CC and ) ( VP ( VBD monitored ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNS companies ) ) ( VP ( VBD came ) ( ADVP-CLR ( RB through ) ) ( PP-CLR ( IN on ) ( NP ( VBN promised ) ( NNS plans ) ) ) ) ) ) ) ) ) )

Various ministries decided the products businessmen could produce and how much and government-owned banks controlled the financing of projects and monitored whether companies came through on promised plans


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ content ) ( PP ( IN with ) ( NP ( NP ( DT this ) ( JJ far-reaching ) ( JJ subtle ) ( NN form ) ) ( PP ( IN of ) ( NP ( NN control ) ) ) ( VP ( VBN exercised ) ( PP-MNR ( IN on ) ( NP ( DT a ) ( JJ case-by-case ) ( NN basis ) ) ) ( PP ( IN with ) ( NP ( DT no ) ( JJ clear ) ( NNS rules ) ( CC or ) ( NNS guidelines ) ) ) ) ) ) ) ) ) )

The government has been content with this far-reaching subtle form of control exercised on a case-by-case basis with no clear rules or guidelines


( S ( CC But ) ( ADVP-TMP ( RB now ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ-1 ( JJ large ) ( NNS amounts ) ) ( VP ( VBG being ) ( VP ( VBN raised ) ( PP-CLR ( IN from ) ( NP ( NNS investors ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NP ( DT the ) ( NN government ) ( VBZ 's ) ) ( VBG dawdling ) ) ( PP ( IN on ) ( NP ( NN regulation ) ( CC and ) ( NN disclosure ) ( NNS requirements ) ) ) ) ( VP ( VBZ has ) ( NP ( DT a ) ( ADJP ( RBR more ) ( JJ dangerous ) ) ( NN aspect ) ) ) )

But now with large amounts being raised from investors the government 's dawdling on regulation and disclosure requirements has a more dangerous aspect


( S ( S ( NP-SBJ ( NP ( DT The ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Board ) ) ( PP ( IN of ) ( NP ( NNP India ) ) ) ) ( VP ( VBD was ) ( VP ( VBN set ) ( PRT ( RP up ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( PP ( IN along ) ( NP ( NP ( DT the ) ( NNS lines ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( NNP New ) ( NNP Delhi ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN pushed ) ( NP ( DT the ) ( NN legislation ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJ operational ) ) ) ) ) ) ) ) ) )

The Securities and Exchange Board of India was set up earlier this year along the lines of the U.S. Securities and Exchange Commission but New Delhi has n't pushed the legislation to make it operational


( S ( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Dave ) ) ( NP ( PRP$ its ) ( NN head ) ) ) ( VP ( VBZ acts ) ( ADJP ( JJ cheery ) ( CC and ) ( JJ patient ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ makes ) ( NP-CLR ( DT no ) ( NNS bones ) ) ( PP-CLR ( IN about ) ( NP ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB get ) ( PP-CLR ( TO to ) ( NP ( VB work ) ) ) ) ) ) ) ) ) ) )

Mr. Dave its head acts cheery and patient but he makes no bones about the need to get to work


( S ( S-TPC-1 ( ADJP-TPC-4 ( JJ Mega ) ( CC or ) ( JJ non-mega ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP feel ) ( SBAR ( S ( NP-SBJ-3 ( NP ( DT the ) ( NN prospectus ) ( NNS standards ) ) ) ( VP ( VB need ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( ADVP-MNR ( RB considerably ) ) ( VBN improved ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

Mega or non-mega we feel the prospectus standards need to be considerably improved he says


( S ( NP-SBJ ( NNS Disclosures ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB very ) ( JJ poor ) ) ( PP-LOC ( IN in ) ( NP ( NNP India ) ) ) ) )

Disclosures are very poor in India


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-3 ( NP ( DT the ) ( JJ big ) ( NNS questions ) ) ( PRN ( SQ ( SQ ( VBP Do ) ( NP-SBJ-2 ( PRP you ) ) ( ADVP ( RB really ) ) ( VP ( VB need ) ( NP ( ADJP ( RB this ) ( JJ much ) ) ( NN money ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB put ) ( PRT ( RP up ) ) ( NP ( DT these ) ( NNS investments ) ) ) ) ) ) ) ( SQ ( VBP Have ) ( NP-SBJ ( PRP you ) ) ( VP ( VBN told ) ( NP ( NNS investors ) ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( VP ( VBZ is ) ( VP ( VBG happening ) ( PP-LOC ( IN in ) ( NP ( PRP$ your ) ( NN sector ) ) ) ) ) ) ) ) ) ( FRAG ( SBARQ ( WHNP ( WHNP ( WP What ) ) ( PP ( IN about ) ( NP ( PRP$ your ) ( NN track ) ( NN record ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( RB n't ) ( VP ( VBN asked ) ( PP-CLR ( IN of ) ( NP ( NP ( NNS companies ) ) ( VP ( VBG coming ) ( PP-DIR ( TO to ) ( NP ( NN market ) ) ) ) ) ) ) ) ) ) ) )

He says the big questions Do you really need this much money to put up these investments Have you told investors what is happening in your sector What about your track record are n't asked of companies coming to market


( S-2 ( ADVP ( RB Instead ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) ) ) ( NP-SBJ-1 ( JJS most ) ( NNS investors ) ) ( VP ( VBP have ) ( S ( VP ( TO to ) ( VP ( VB rely ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( JJ rumor-happy ) ( JJ Indian ) ( NN press ) ) ) ) ) ) ) )

Instead he says most investors have to rely on the rumor-happy Indian press


( S ( NP-SBJ ( DT An ) ( NN example ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( DT the ) ( JJS biggest ) ( NN offering ) ) ( PP ( IN of ) ( NP ( NP ( PRP them ) ) ( NP ( DT all ) ) ) ) ) ( NP ( NP ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ( POS 's ) ) ( ADJP ( QP ( CD 570 ) ( CD million ) ) ) ( NN bond ) ( NN issue ) ) ) ) )

An example is the biggest offering of them all Larsen & Toubro 's 570 million bond issue


( S ( NP-SBJ-1 ( DT The ) ( NN engineering ) ( NN company ) ) ( VP ( VBD was ) ( VP ( VBN acquired ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN takeover ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( JJ giant ) ( NNP Reliance ) ( NN textile ) ( NN group ) ) ) ) ) )

The engineering company was acquired in a takeover earlier this year by the giant Reliance textile group


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ) ( VP ( VBD had ) ( RB n't ) ( VP ( VBN raised ) ( NP ( NN money ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN public ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 38 ) ( NNS years ) ) ) ) ) ) ) ( NP-SBJ ( PRP$ its ) ( JJ new ) ( NNS owners ) ) ( ADVP-TMP ( RB frequently ) ) ( VP ( VBP raise ) ( NP ( NNS funds ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ local ) ( NN market ) ) ) ) )

Although Larsen & Toubro had n't raised money from the public in 38 years its new owners frequently raise funds on the local market


( S ( NP-SBJ ( NNP Reliance ) ) ( VP ( VBD floated ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 357 ) ( CD million ) ) ) ( NN petrochemical ) ( NN company ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ( SBAR-3 ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD was ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( NN time ) ) ) ( NP-PRD ( NP ( DT the ) ( JJS largest ) ( JJ public ) ( NN issue ) ) ( PP-LOC ( IN in ) ( NP ( JJ Indian ) ( NN history ) ) ) ) ) ) ) ) )

Reliance floated a 357 million petrochemical company in 1988 that was at the time the largest public issue in Indian history


( S ( NP-SBJ-1 ( DT The ) ( NNS media ) ) ( VP ( VBZ has ) ( VP ( VBN raised ) ( NP ( NP ( NNS questions ) ) ( PP ( IN about ) ( NP ( NP ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ( POS 's ) ) ( NN issue ) ) ) ) ( S-ADV ( VP ( VBG pointing ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ exceeds ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ annual ) ( NNS sales ) ) ( CC and ) ( NP ( PRP$ its ) ( NN market ) ( NN capitalization ) ) ) ) ) ) ) ) ) ) )

The media has raised questions about Larsen & Toubro 's issue pointing out that it exceeds the company 's annual sales and its market capitalization


( SINV ( ADJP-TPC-2 ( JJ Even ) ( NN stranger ) ) ( VP ( VBZ is ) ) ( NP-SBJ ( NP ( DT the ) ( NN case ) ) ( PP ( IN of ) ( NP ( NP ( NNP Usha ) ( NNP Rectifier ) ) ( NP ( NP ( DT a ) ( NN semiconductor ) ( NN company ) ) ( PP ( IN with ) ( NP ( NP ( CD 1988 ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( CD 28 ) ( CD million ) ) ) ) ) ) ( SBAR ( WHNP-1 ( DT that ) ) ( S ( VP ( POS 's ) ( VP ( VBG raising ) ( NP ( QP ( CD 270 ) ( CD million ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB build ) ( NP ( DT an ) ( NN iron ) ( NN plant ) ) ) ) ) ) ) ) ) ) ) ) ) )

Even stranger is the case of Usha Rectifier a semiconductor company with 1988 sales of 28 million that 's raising 270 million to build an iron plant


( S ( SBAR-TMP ( RB Once ) ( S ( NP-SBJ-1 ( DT the ) ( NN money ) ) ( VP ( VBZ is ) ( VP ( VBN raised ) ) ) ) ) ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( ADJP-PRD ( JJ certain ) ) ( SBAR-4 ( WHADVP-3 ( WRB how ) ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ) ) ) ) ) )

Once the money is raised it is n't always certain how it is used


( S ( NP-SBJ ( NNP Larsen ) ( CC & ) ( NNP Toubro ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( VP ( VBZ says ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBG raising ) ( NP ( NP ( QP ( CD 570 ) ( CD million ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB use ) ( PP-CLR ( IN as ) ( NP ( NN supplier ) ( NN credit ) ) ) ( PP-LOC ( IN on ) ( NP ( JJ large ) ( NN engineering ) ( NNS jobs ) ) ) ) ) ) ) ) ) ) ) ) )

Larsen & Toubro for example says it 's raising 570 million to use as supplier credit on large engineering jobs


( S ( PP ( IN Unlike ) ( NP ( JJ other ) ( NNS companies ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN pin-pointed ) ( NP ( JJ specific ) ( NNS projects ) ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NNS funds ) ) ) ) ) )

Unlike other companies it has n't pin-pointed specific projects for the funds


( S ( CC And ) ( SBAR-TMP ( WHADVP-3 ( RB even ) ( WRB when ) ) ( S ( NP-SBJ-1 ( JJ specific ) ( NNS projects ) ) ( VP ( VBP are ) ( VP ( VBN described ) ( PP-LOC ( IN in ) ( NP ( NNS prospectuses ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN money ) ) ( ADVP-TMP ( RB often ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ( ADVP-LOC ( RB elsewhere ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNS analysts ) ) ) ) ) ) )

And even when specific projects are described in prospectuses the money often is used elsewhere according to analysts


( SINV ( S-TPC-2 ( NP-SBJ ( NN Someone ) ) ( VP ( MD must ) ( VP ( VB monitor ) ( SBAR-NOM ( WHADVP-3 ( WRB where ) ) ( S ( NP-SBJ-1 ( DT the ) ( NNS funds ) ) ( VP ( VBP are ) ( VP ( VBN deployed ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Dave ) ) )

Someone must monitor where the funds are deployed says Mr. Dave


( S ( NP-SBJ ( NNP Mr. ) ( NNP Patel ) ) ( VP ( VBZ agrees ) ( S ( NP-SBJ ( EX There ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT no ) ( JJ proper ) ( NN monitoring ) ( CC and ) ( NN screening ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN use ) ) ( PP ( IN of ) ( NP ( DT these ) ( NNS funds ) ) ) ) ) ) ) ) ) )

Mr. Patel agrees There is no proper monitoring and screening of the use of these funds


( S ( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP 're ) ( VP ( VBG trying ) ( S ( VP ( TO to ) ( VP ( VB plug ) ( NP ( DT the ) ( JJ various ) ( NNS loopholes ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( ADJP-PRD ( RB totally ) ( JJ unprepared ) ( PP ( IN for ) ( NP ( DT this ) ) ) ) ) ) )

They 're trying to plug the various loopholes but they 're totally unprepared for this


( S ( PP-PRP ( IN Because ) ( IN of ) ( NP ( NP ( NP ( DT the ) ( JJ large ) ( NNS amounts ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ( VP ( VBG being ) ( VP ( VBN raised ) ) ) ) ( NP ( DT the ) ( JJ loose ) ( NN disclosure ) ( NNS requirements ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJ casual ) ( NN monitoring ) ) ( PP ( IN of ) ( SBAR-NOM ( WHADVP-4 ( WRB how ) ) ( S ( NP-SBJ-1 ( DT the ) ( NN money ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT some ) ( NNS analysts ) ) ( VP ( VBP fear ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( MD could ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( JJ few ) ( NNS mega-crashes ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( MD could ) ( VP ( VB hurt ) ( NP ( NN market ) ( NN confidence ) ) ( ADVP-MNR ( ADVP ( RB far ) ( RBR more ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ small ) ( NNS bankruptcies ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBD followed ) ( NP ( NP ( DT the ) ( NN boom ) ) ( PP ( IN of ) ( NP ( CD 1986 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Because of the large amounts of money being raised the loose disclosure requirements and the casual monitoring of how the money is used some analysts fear that there could be a few mega-crashes which could hurt market confidence far more than the small bankruptcies that followed the boom of 1986


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( VBZ insists ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PDT such ) ( DT a ) ( NN possibility ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ low ) ) ) ) ) ) )

The government insists that such a possibility is low


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ says ) ( SBAR ( IN that ) ( S ( PP ( IN despite ) ( NP ( NP ( JJ loose ) ( NN regulation ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN market ) ) ( NP ( PRP itself ) ) ) ) ) ) ( NP-SBJ ( NP ( PRP$ its ) ( JJ longstanding ) ( NN regulation ) ) ( PP ( IN of ) ( NP ( NN industry ) ) ) ) ( VP ( MD will ) ( VP ( VB prevent ) ( NP ( JJ such ) ( NNS crashes ) ) ) ) ) ) ) )

It says that despite loose regulation of the market itself its longstanding regulation of industry will prevent such crashes


( S ( NP-SBJ ( NNP T.T. ) ( NNP Ram ) ( NNP Mohan ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

T.T. Ram Mohan contributed to this article


( S ( NP-SBJ ( NNP Nikon ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ unconsolidated ) ( JJ pretax ) ( NN profit ) ) ( VP ( VBD increased ) ( NP-EXT ( CD 70 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 12.12 ) ( CD billion ) ) ( NNS yen ) ) ( PRN ( NP ( QP ( CD 85.3 ) ( CD million ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ first ) ( NN half ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 7.12 ) ( CD billion ) ) ( NNS yen ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ) ) )

Nikon Corp. said unconsolidated pretax profit increased 70 % to 12.12 billion yen 85.3 million in the first half ended Sept. 30 from 7.12 billion yen a year ago


( S ( NP-SBJ ( DT The ) ( NNP Tokyo ) ( NN camera ) ( NN maker ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( ADVP ( RBR more ) ( IN than ) ) ( VBD doubled ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 5.85 ) ( CD billion ) ) ( NNS yen ) ) ( CC or ) ( NP ( NP ( CD 16.08 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( QP ( CD 2.63 ) ( CD billion ) ) ( NNS yen ) ) ( CC or ) ( NP ( NP ( CD 7.24 ) ( NNS yen ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) )

The Tokyo camera maker said net income more than doubled to 5.85 billion yen or 16.08 a share from 2.63 billion yen or 7.24 yen a share


( S ( NP-SBJ ( NNP Nikon ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS sales ) ) ( VP ( VBD rose ) ( PP ( IN despite ) ( NP ( NP ( DT the ) ( JJ adverse ) ( NN effect ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( JJ unpopular ) ( NN consumption ) ( NN tax ) ) ( VP ( VBN introduced ) ( PP-TMP ( IN in ) ( NP ( NNP April ) ) ) ) ) ) ) ) ) ) ) ) )

Nikon said sales rose despite the adverse effect of Japan 's unpopular consumption tax introduced in April


( S ( S-TPC-1 ( NP-SBJ ( VBG Increasing ) ( NX ( NX ( JJ personal ) ( NN spending ) ) ( CC and ) ( NX ( NN capital ) ( NN investment ) ) ) ) ( VP ( VBP are ) ( VP ( VBG fueling ) ( NP ( NN growth ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

Increasing personal spending and capital investment are fueling growth the company said


( S ( S-TPC-1 ( NP-SBJ ( VBG Rising ) ( NN export ) ( NNS sales ) ) ( ADVP ( RB also ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( JJ strong ) ( NN growth ) ) ) ) ) ( NP-SBJ ( NNP Nikon ) ) ( VP ( VBD added ) ) )

Rising export sales also contributed to strong growth Nikon added


( S ( NP-SBJ ( JJ Total ) ( NNS sales ) ) ( VP ( VBD gained ) ( NP ( CD 20 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 122.36 ) ( CD billion ) ) ( NNS yen ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 102.01 ) ( CD billion ) ) ( NNS yen ) ) ) ) )

Total sales gained 20 % to 122.36 billion yen from 102.01 billion yen


( S ( NP-SBJ ( NNS Exports ) ) ( VP ( VBD made ) ( PRT ( RP up ) ) ( NP ( NP ( NP ( CD 46.2 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJS latest ) ( NN year ) ( POS 's ) ) ( NN total ) ) ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( CD 39.8 ) ( NN % ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ) )

Exports made up 46.2 % of the latest year 's total up from 39.8 % a year ago


( S ( NP-SBJ-1 ( NN Camera ) ( NNS sales ) ) ( VP ( VBD showed ) ( NP ( DT the ) ( JJS strongest ) ( NNS gains ) ) ( S-ADV ( VP ( VBG rising ) ( NP-EXT ( CD 37 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 50.59 ) ( CD billion ) ) ( NNS yen ) ) ) ) ) ) )

Camera sales showed the strongest gains rising 37 % to 50.59 billion yen


( S ( NP-SBJ ( NP ( NNP Nikon ) ( NN forecast ) ( NNS sales ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBG ending ) ( NP-TMP ( NNP March ) ( CD 31 ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB rise ) ( NP-EXT ( CD 9.6 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 240 ) ( CD billion ) ) ( NNS yen ) ) ) ) ) )

Nikon forecast sales for the year ending March 31 will rise 9.6 % to 240 billion yen


( S ( S ( NP-SBJ-1 ( JJ Pretax ) ( NN profit ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP-EXT ( CD 18 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 22 ) ( CD billion ) ) ( NNS yen ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( JJ net ) ( NN income ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB rise ) ( NP-EXT ( CD 53 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 10.5 ) ( CD billion ) ) ( NNS yen ) ) ) ) ) ) ) ) ) )

Pretax profit is expected to increase 18 % to 22 billion yen and net income is expected to rise 53 % to 10.5 billion yen


( S ( NP-SBJ-1 ( NP ( NNP Bruce ) ( NNP W. ) ( NNP Wilkinson ) ) ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( JJ executive ) ( NN officer ) ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ additional ) ( NN post ) ) ( PP ( IN of ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT this ) ( UCP ( JJ architectural ) ( CC and ) ( NN design ) ( NNS services ) ) ( NN concern ) ) ) ) ) ) ) ) ) )

Bruce W. Wilkinson president and chief executive officer was named to the additional post of chairman of this architectural and design services concern


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Wilkinson ) ) ( ADJP ( NP-ADV ( CD 45 ) ( NNS years ) ) ( JJ old ) ) ) ( VP ( VBZ succeeds ) ( NP ( NP ( NNP Thomas ) ( NN A. ) ( NNP Bullock ) ) ( NP ( CD 66 ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( VP ( VP ( VBG retiring ) ( PP-CLR ( IN as ) ( NP ( NN chairman ) ) ) ) ( CC but ) ( VP ( MD will ) ( VP ( VB continue ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN director ) ( CC and ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ executive ) ( NN committee ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Wilkinson 45 years old succeeds Thomas A. Bullock 66 who is retiring as chairman but will continue as a director and chairman of the executive committee


( S ( PP-LOC ( IN In ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( VP ( MD could ) ( VP ( VB prove ) ( NP-PRD ( NP ( DT a ) ( JJ major ) ( NN addition ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NNPS Philippines ) ( POS ' ) ) ( JJ foreign-investment ) ( NN portfolio ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( JJ Taiwanese ) ( NN company ) ) ( VP ( VBD signed ) ( NP ( DT a ) ( ADJP ( QP ( CD 180 ) ( CD million ) ) ) ( NN construction ) ( NN contract ) ( S ( VP ( TO to ) ( VP ( VB build ) ( NP ( NP ( DT the ) ( NN centerpiece ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ planned ) ( NN petrochemical ) ( NN complex ) ) ) ) ) ) ) ) ) )

In what could prove a major addition to the Philippines ' foreign-investment portfolio a Taiwanese company signed a 180 million construction contract to build the centerpiece of a planned petrochemical complex


( S ( NP-SBJ ( NP ( NP ( NNP Taiwan ) ( POS 's ) ) ( NNP USI ) ( NNP Far ) ( NNP East ) ( NNP Corp. ) ) ( NP ( DT a ) ( NN petrochemical ) ( NN company ) ) ) ( VP ( VBD initialed ) ( NP ( NP ( DT the ) ( NN agreement ) ) ( PP ( IN with ) ( NP ( DT an ) ( JJ unidentified ) ( JJ Japanese ) ( NN contractor ) ) ) ( S-3 ( VP ( TO to ) ( VP ( VB build ) ( NP ( DT a ) ( NN naphtha ) ( NN cracker ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NNP Alson ) ( NNP Lee ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ heads ) ( NP ( NP-2 ( DT the ) ( JJ Philippine ) ( NN company ) ) ( VP ( VBN set ) ( PRT ( RP up ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB build ) ( CC and ) ( VB operate ) ( NP ( DT the ) ( NN complex ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Taiwan 's USI Far East Corp. a petrochemical company initialed the agreement with an unidentified Japanese contractor to build a naphtha cracker according to Alson Lee who heads the Philippine company set up to build and operate the complex


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Lee ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NNP Luzon ) ( NNP Petrochemical ) ( NNP Corp. ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN contract ) ) ( VP ( VBD was ) ( VP ( VBN signed ) ( NP-TMP ( NNP Wednesday ) ) ( PP-LOC ( IN in ) ( NP ( NNP Tokyo ) ) ) ( PP-CLR ( IN with ) ( NP ( NNP USI ) ( NNP Far ) ( NNP East ) ( NNS officials ) ) ) ) ) ) ) ) )

Mr. Lee president of Luzon Petrochemical Corp. said the contract was signed Wednesday in Tokyo with USI Far East officials


( S ( NP-SBJ-1 ( NN Contract ) ( NNS details ) ) ( ADVP ( RB however ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN been ) ( VP ( VBN made ) ( S ( ADJP-PRD ( JJ public ) ) ) ) ) ) )

Contract details however have n't been made public


( S ( NP-SBJ-2 ( DT The ) ( NN complex ) ) ( VP ( VBZ is ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN located ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Batangas ) ) ( ADVP-LOC ( NP ( QP ( RB about ) ( CD 70 ) ) ( NNS miles ) ) ( RB south ) ( PP ( IN of ) ( NP ( NNP Manila ) ) ) ) ) ) ) ) ) ) ) )

The complex is to be located in Batangas about 70 miles south of Manila


( S ( NP-SBJ ( NNP USI ) ( NNP Far ) ( NNP East ) ) ( VP ( MD will ) ( VP ( VB hold ) ( NP ( NP ( DT a ) ( ADJP ( CD 60 ) ( NN % ) ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Luzon ) ( NNP Petrochemical ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NNS papers ) ) ( VP ( VBN signed ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( DT the ) ( JJ Philippine ) ( NN government ) ( POS 's ) ) ( NNP Board ) ) ( PP ( IN of ) ( NP ( NNP Investments ) ) ) ) ) ) ) ) ) ) ) )

USI Far East will hold a 60 % stake in Luzon Petrochemical according to papers signed with the Philippine government 's Board of Investments


( S ( NP-SBJ-1 ( DT The ) ( JJ proposed ) ( NN petrochemical ) ( NN plant ) ) ( VP ( MD would ) ( VP ( VB use ) ( NP ( NN naphtha ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB manufacture ) ( NP ( NP ( DT the ) ( NNS petrochemicals ) ( NN propylene ) ( CC and ) ( NN ethylene ) ) ( CC and ) ( NP ( NP ( PRP$ their ) ( NN resin ) ( NNS derivatives ) ) ( NP ( NN polypropylene ) ( CC and ) ( NN polyethylene ) ) ) ) ) ) ) ) ) )

The proposed petrochemical plant would use naphtha to manufacture the petrochemicals propylene and ethylene and their resin derivatives polypropylene and polyethylene


( S ( NP-SBJ ( DT These ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ raw ) ( NNS materials ) ) ( VP ( VBN used ) ( PP-CLR ( IN in ) ( S-NOM ( VP ( VBG making ) ( NP ( NNS plastics ) ) ) ) ) ) ) ) )

These are the raw materials used in making plastics


( S ( NP-SBJ ( DT The ) ( NN contract ) ( NN signing ) ) ( VP ( VBD represented ) ( NP ( NP ( DT a ) ( JJ major ) ( NN step ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ long-planned ) ( NN petrochemical ) ( NN project ) ) ) ) ) )

The contract signing represented a major step in the long-planned petrochemical project


( S ( PP ( IN At ) ( NP ( DT an ) ( JJ estimated ) ( QP ( CD 360 ) ( CD million ) ) ) ) ( NP-SBJ ( DT the ) ( NN project ) ) ( VP ( MD would ) ( VP ( VB represent ) ( NP ( NP ( DT the ) ( JJ single ) ( JJS largest ) ( JJ foreign ) ( NN investment ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNPS Philippines ) ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ ( NNP President ) ( NNP Corazon ) ( NNP Aquino ) ) ( VP ( VBD took ) ( NP ( NN office ) ) ( PP-TMP ( IN in ) ( NP ( NNP February ) ( CD 1986 ) ) ) ) ) ) ) ) ) )

At an estimated 360 million the project would represent the single largest foreign investment in the Philippines since President Corazon Aquino took office in February 1986


( S ( NP-SBJ-1 ( PRP It ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( VP ( VBN considered ) ( S ( ADJP-PRD ( JJ critical ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( NNS efforts ) ( S ( VP ( TO to ) ( VP ( DT both ) ( VP ( VB attract ) ( NP ( JJ other ) ( NN investment ) ) ( PP-CLR ( IN from ) ( NP ( NNP Taiwan ) ) ) ) ( CC and ) ( VP ( VB raise ) ( NP ( JJ heavy ) ( NN industry ) ( NNS capabilities ) ) ) ) ) ) ) ) ) ) ) ) )

It also is considered critical to the country 's efforts to both attract other investment from Taiwan and raise heavy industry capabilities


( S ( NP-SBJ ( DT The ) ( NN project ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( PP-LOC-PRD ( IN in ) ( CC and ) ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( NN pipeline ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( RBR more ) ) ( PP ( IN than ) ( NP ( DT a ) ( NN decade ) ) ) ) ) ) ) )

The project has been in and out of the pipeline for more than a decade


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNS workers ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB break ) ( NP ( NN ground ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ-2 ( NP ( JJ legal ) ( NNS maneuvers ) ( S ( VP ( TO to ) ( VP ( VB block ) ( NP ( DT the ) ( NN complex ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBN resolved ) ( NP-1 ( NP ( NNS moves ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBD caused ) ( S ( NP-SBJ ( DT the ) ( NN signing ) ) ( VP ( TO to ) ( VP ( VB remain ) ( ADJP-PRD ( JJ questionable ) ) ( PP-TMP ( IN up ) ( PP ( TO to ) ( NP ( DT the ) ( JJ last ) ( NN moment ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

However workers ca n't break ground until legal maneuvers to block the complex are resolved moves which caused the signing to remain questionable up to the last moment


( S ( SBAR-ADV ( IN As ) ( S ( ADVP-TMP ( RB previously ) ) ( VP ( VBN reported ) ) ) ) ( NP-SBJ-2 ( NP ( DT a ) ( NN member ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNPS Philippines ) ( POS ' ) ) ( NNP House ) ) ( PP ( IN of ) ( NP ( NNPS Representatives ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN sued ) ( S-CLR ( VP ( TO to ) ( VP ( VB stop ) ( NP ( DT the ) ( NN plant ) ) ) ) ) ) ) )

As previously reported a member of the Philippines ' House of Representatives has sued to stop the plant


( S ( NP-SBJ ( NP ( DT The ) ( NN legislator ) ) ( NP ( NNP Enrique ) ( NNP Garcia ) ) ) ( VP ( VBD had ) ( VP ( VP ( ADVP-MNR ( RB actively ) ) ( VBN backed ) ( NP ( DT the ) ( NN plant ) ) ) ( CC but ) ( VP ( PP-LOC=1 ( IN at ) ( NP ( NP ( DT the ) ( JJ original ) ( NN site ) ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ his ) ( NN constituency ) ) ( ADVP-LOC ( RB northwest ) ( PP ( IN of ) ( NP ( NNP Manila ) ) ) ) ) ) ) ) ) ) ) )

The legislator Enrique Garcia had actively backed the plant but at the original site in his constituency northwest of Manila


( S ( S ( NP-SBJ ( NP ( DT The ) ( NN country ) ( POS 's ) ) ( NNP Supreme ) ( NNP Court ) ) ( VP ( VBD dismissed ) ( NP ( DT the ) ( NN suit ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Garcia ) ) ( NP-TMP ( RB late ) ( JJ last ) ( NN month ) ) ( VP ( VBD filed ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( NN reconsideration ) ) ) ) ) )

The country 's Supreme Court dismissed the suit but Mr. Garcia late last month filed for a reconsideration


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ-2 ( NNP President ) ( NNP Aquino ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB yet ) ) ( S ( VP ( TO to ) ( VP ( VB sign ) ( PP-CLR ( IN into ) ( NP ( NN law ) ) ) ( NP ( NP ( DT a ) ( NN bill ) ) ( VP ( VBG removing ) ( NP ( NP ( DT a ) ( JJ stiff ) ( ADJP ( CD 48 ) ( NN % ) ) ( NN tax ) ) ( PP ( IN on ) ( NP ( NP ( NN naphtha ) ) ( NP ( NP ( DT the ) ( JJ principal ) ( JJ raw ) ( NN material ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN used ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN cracker ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In addition President Aquino has yet to sign into law a bill removing a stiff 48 % tax on naphtha the principal raw material to be used in the cracker


( S ( ADVP ( RB However ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NN news ) ( NN conference ) ) ) ( NP-TMP ( NNP Thursday ) ) ( NP-SBJ ( NNP Mrs. ) ( NNP Aquino ) ) ( VP ( VP ( VBD backed ) ( NP ( DT the ) ( NN project ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP$ her ) ( NN government ) ) ( VP ( VBD was ) ( VP ( VBG attempting ) ( S ( VP ( TO to ) ( VP ( VB soothe ) ( NP ( NP ( DT the ) ( NNS feelings ) ) ( PP ( IN of ) ( NP ( NP ( NNS residents ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( JJ original ) ( NN site ) ) ( ADJP-LOC ( JJ adjacent ) ( PP ( TO to ) ( NP ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( JJ major ) ( NN petroleum ) ( NN refinery ) ) ( PP-LOC ( IN in ) ( NP ( NNP Bataan ) ( NN province ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

However at a news conference Thursday Mrs. Aquino backed the project and said her government was attempting to soothe the feelings of residents at the original site adjacent to the government 's major petroleum refinery in Bataan province


( S ( S-TPC-1 ( S ( NP-SBJ-3 ( PRP We ) ) ( VP ( VBP have ) ( VP ( VBN tried ) ( NP-CLR ( PRP$ our ) ( JJS best ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB tell ) ( NP ( NP ( DT the ) ( NNS people ) ) ( PP-LOC ( IN in ) ( NP ( NNP Bataan ) ) ) ) ( SBAR ( IN that ) ( S ( ADVP ( RB maybe ) ) ( NP-TMP ( DT this ) ( NN time ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( RB not ) ( VP ( VB go ) ( PP-DIR ( TO to ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( ADVP ( RB certainly ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( MD will ) ( VP ( VB do ) ( NP-CLR ( PRP$ our ) ( JJS best ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB encourage ) ( S ( NP-SBJ ( JJ other ) ( NNS investors ) ) ( VP ( TO to ) ( VP ( VB go ) ( PP-DIR ( TO to ) ( NP ( PRP$ their ) ( NN province ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mrs. ) ( NNP Aquino ) ) ( VP ( VBD told ) ( NP ( JJ Manila-based ) ( JJ foreign ) ( NNS correspondents ) ) ) )

We have tried our best to tell the people in Bataan that maybe this time it will not go to them but certainly we will do our best to encourage other investors to go to their province Mrs. Aquino told Manila-based foreign correspondents


( S ( NP-SBJ-1 ( DT The ) ( NN project ) ) ( VP ( VBD appeared ) ( S ( VP ( TO to ) ( VP ( VB be ) ( PP-LOC-PRD ( IN on ) ( NP ( DT the ) ( NNS rocks ) ) ) ) ) ) ( NP-TMP ( NP ( RBR earlier ) ( DT this ) ( NN month ) ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( NP ( NP ( DT the ) ( JJ other ) ( JJ major ) ( NN partner ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN project ) ) ) ) ( NP ( NNP China ) ( NNP General ) ( NNPS Plastics ) ( NNP Corp. ) ) ) ( VP ( VBD backed ) ( PRT ( RP out ) ) ) ) ) ) ) )

The project appeared to be on the rocks earlier this month when the other major partner in the project China General Plastics Corp. backed out


( S ( NP-SBJ-1 ( NP ( NNP China ) ( NNP General ) ( NNPS Plastics ) ) ( NP ( DT another ) ( JJ Taiwanese ) ( NN petrochemical ) ( NN manufacturer ) ) ) ( VP ( VBD was ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( ADJP ( CD 40 ) ( NN % ) ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Luzon ) ( NNP Petrochemical ) ) ) ) ) ) ) ) )

China General Plastics another Taiwanese petrochemical manufacturer was to have a 40 % stake in Luzon Petrochemical


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Lee ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP USI ) ( NNP Far ) ( NNP East ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ confident ) ( SBAR ( S ( NP-SBJ ( JJ other ) ( NNS investors ) ) ( VP ( MD will ) ( VP ( VB take ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN slack ) ) ) ) ) ) ) ) ) ) ) )

However Mr. Lee said that USI Far East is confident other investors will take up the slack


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP USI ) ( NNP Far ) ( NNP East ) ) ( VP ( VBZ has ) ( VP ( VBN applied ) ( PP-CLR ( TO to ) ( NP ( CC both ) ( NP ( DT the ) ( NNP Asian ) ( NNP Development ) ( NNP Bank ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNP World ) ( NNP Bank ) ( POS 's ) ) ( NNP International ) ( NNP Finance ) ( NNP Corp. ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( NN financing ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB include ) ( NP ( NN equity ) ( NNS stakes ) ) ) ) ) ) ) ) ) ) ) ) ) )

He said USI Far East has applied to both the Asian Development Bank and the World Bank 's International Finance Corp. for financing that could include equity stakes


( S ( S ( NP-SBJ ( NP ( DT A ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP DPC ) ( NNP Acquisition ) ( NNPS Partners ) ) ) ) ( VP ( VP ( VBD launched ) ( NP ( NP ( DT a ) ( ADJP ( JJ 10-a-share ) ) ( NN tender ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ( PP ( IN of ) ( NP ( NNPS Dataproducts ) ( NNP Corp. ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD would ) ( VP ( VB seek ) ( S ( VP ( TO to ) ( VP ( VB liquidate ) ( NP ( DT the ) ( NN computer-printer ) ( NN maker ) ) ( ADVP-TMP ( ADVP ( RB as ) ( RB soon ) ) ( PP ( IN as ) ( ADJP ( JJ possible ) ) ) ) ) ) ) ( SBAR-ADV ( RB even ) ( IN if ) ( S ( NP-SBJ-2 ( DT a ) ( NN merger ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN consummated ) ) ) ) ) ) ) ) ) ) ) ) )

A unit of DPC Acquisition Partners launched a 10-a-share tender offer for the shares outstanding of Dataproducts Corp. and said it would seek to liquidate the computer-printer maker as soon as possible even if a merger is n't consummated


( S ( NP-SBJ-1 ( NNP DPC ) ( NNP Acquisition ) ) ( VP ( VBZ is ) ( VP ( VBN controlled ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Crescott ) ( NNP Investment ) ( NNPS Associates ) ) ( NP ( NNP Wilson ) ( NNP Investment ) ( NNP Group ) ) ( NP ( NNP Kernel ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Catalyst ) ( NNPS Partners ) ) ) ) ) ) )

DPC Acquisition is controlled by Crescott Investment Associates Wilson Investment Group Kernel Corp. and Catalyst Partners


( S ( NP-SBJ ( DT The ) ( NN investor ) ( NN group ) ) ( VP ( VBZ owns ) ( NP ( NP ( CD 1,534,600 ) ( NNPS Dataproducts ) ( JJ common ) ( NNS shares ) ) ( CC or ) ( NP ( DT a ) ( ADJP ( CD 7.6 ) ( NN % ) ) ( NN stake ) ) ) ) )

The investor group owns 1,534,600 Dataproducts common shares or a 7.6 % stake


( S ( NP-SBJ-1 ( DT The ) ( NN offer ) ) ( VP ( VBZ is ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( JJ several ) ( NNS conditions ) ) ( PP ( VBG including ) ( S-NOM ( VP ( VBG obtaining ) ( NP ( NN financing ) ) ) ) ) ) ) ) ) )

The offer is based on several conditions including obtaining financing


( S ( NP-SBJ ( NNP DPC ) ( NNP Acquisition ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN received ) ( NP ( NP ( DT the ) ( JJ reasonable ) ( NN assurance ) ) ( PP ( IN of ) ( NP ( NNP Chase ) ( NNP Manhattan ) ( NNP Bank ) ( NNP N.A. ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN financing ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN obtained ) ) ) ) ) ) ) ) ) ) ) ) )

DPC Acquisition said it had received the reasonable assurance of Chase Manhattan Bank N.A. that the financing can be obtained


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( NN filing ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ( NP-SBJ ( NNP DPC ) ( NNP Acquisition ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB need ) ( NP ( QP ( RB about ) ( CD 215 ) ( CD million ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VP ( VB buy ) ( NP ( DT the ) ( NNS shares ) ) ) ( CC and ) ( VP ( VB pay ) ( NP ( VBN related ) ( NNS fees ) ( CC and ) ( NNS expenses ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a filing with the Securities and Exchange Commission DPC Acquisition said it expects it will need about 215 million to buy the shares and pay related fees and expenses


( S ( NP-SBJ ( NNP DPC ) ( NNP Acquisition ) ) ( VP ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( RB not ) ( VP ( VBN begun ) ( NP ( NP ( NNS discussions ) ) ( PP ( IN with ) ( NP ( NN financing ) ( NNS sources ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD expected ) ( S ( VP ( TO to ) ( VP ( VB repay ) ( NP ( NP ( DT the ) ( NNS amounts ) ) ( VP ( VBN borrowed ) ) ) ( PP-CLR ( IN through ) ( NP ( NP ( NNS proceeds ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN liquidation ) ) ) ) ) ) ) ) ) ) ) ) ) )

DPC Acquisition added that it has not begun discussions with financing sources and said it expected to repay the amounts borrowed through proceeds of the liquidation


( S ( NP-SBJ-2 ( NNPS Dataproducts ) ( NNS officials ) ) ( VP ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB comment ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD had ) ( RB not ) ( ADVP-TMP ( RB yet ) ) ( VP ( VBN seen ) ( NP ( NP ( DT a ) ( NN suit ) ) ( VP ( VBN filed ) ( PP-LOC ( IN in ) ( NP ( JJ federal ) ( NN court ) ) ) ( PP ( IN by ) ( NP-LGS ( NNP DPC ) ( NNP Acquisition ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ seeks ) ( S ( VP ( TO to ) ( VP ( VB nullify ) ( NP ( NP ( DT a ) ( JJ standstill ) ( NN agreement ) ) ( PP ( IN between ) ( NP ( NP ( NNP DPC ) ( NNP Acquisition ) ) ( CC and ) ( NP ( NNPS Dataproducts ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Dataproducts officials declined to comment and said they had not yet seen a suit filed in federal court by DPC Acquisition that seeks to nullify a standstill agreement between DPC Acquisition and Dataproducts


( S ( NP-TMP ( RBR Earlier ) ( DT this ) ( NN year ) ) ( NP-SBJ ( NNP DPC ) ( NNP Acquisition ) ) ( VP ( VBD made ) ( NP ( NP ( NP ( DT a ) ( ADJP ( JJ 15-a-share ) ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNPS Dataproducts ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( DT the ) ( NNPS Dataproducts ) ( NN board ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD rejected ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-2 ( DT the ) ( ADJP ( QP ( CD 283.7 ) ( CD million ) ) ) ( NN offer ) ) ( VP ( VBD was ) ( RB not ) ( VP ( ADVP-MNR ( RB fully ) ) ( VBN financed ) ) ) ) ) ) ) ) ) ) ) ) ) )

Earlier this year DPC Acquisition made a 15-a-share offer for Dataproducts which the Dataproducts board said it rejected because the 283.7 million offer was not fully financed


( S ( NP-SBJ ( NNP Dataproducts ) ) ( VP ( VBZ has ) ( ADVP-TMP ( IN since ) ) ( VP ( VP ( VBN started ) ( NP ( DT a ) ( NN restructuring ) ) ) ( CC and ) ( VP ( VBZ has ) ( VP ( VBN said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( RB not ) ( PP-PRD ( IN for ) ( NP ( NN sale ) ) ) ) ) ) ) ) ) ) )

Dataproducts has since started a restructuring and has said it is not for sale


( S ( NP-SBJ ( NP ( NNP Dentsu ) ( NNP Inc. ) ) ( NP ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJS largest ) ( NN advertising ) ( NN agency ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN strength ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN dominance ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ Japanese ) ( NN market ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG setting ) ( NP ( PRP$ its ) ( NNS sights ) ) ( PP-CLR ( IN on ) ( NP ( JJ overseas ) ( NN expansion ) ) ) ) ) )

Dentsu Inc. the world 's largest advertising agency on the strength of its dominance in the Japanese market is setting its sights on overseas expansion


( S ( NP-TMP ( JJ Last ) ( NN year ) ) ( NP-SBJ ( NNP Dentsu ) ) ( VP ( VBD started ) ( NP ( NP ( NNP HDM ) ) ( NP ( NP ( DT a ) ( JJ joint ) ( NN network ) ) ( PP ( IN with ) ( NP ( NP ( NNP U.S. ) ( NN ad ) ( NN agency ) ( NNP Young ) ( CC & ) ( NNP Rubicam ) ) ( CC and ) ( NP ( NP ( NNP Eurocom ) ) ( PP ( IN of ) ( NP ( NNP France ) ) ) ) ) ) ) ) ) )

Last year Dentsu started HDM a joint network with U.S. ad agency Young & Rubicam and Eurocom of France


( S ( ADVP-TMP ( NP-ADV ( DT A ) ( JJ few ) ( NNS months ) ) ( RB ago ) ) ( NP-SBJ ( NNP Dentsu ) ) ( VP ( VBD acquired ) ( NP ( NP ( CD 69 ) ( NN % ) ) ( PP ( IN of ) ( NP ( JJ Australian ) ( NN agency ) ( NNP Fortune ) ( NNP Communication ) ( NNS Holdings ) ( NNP Ltd. ) ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( CD 5.9 ) ( CD million ) ) ( JJ Australian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 4.6 ) ( CD million ) ) ) ) ) ) ) )

A few months ago Dentsu acquired 69 % of Australian agency Fortune Communication Holdings Ltd. for 5.9 million Australian dollars 4.6 million


( S ( S ( NP-SBJ ( NNP Dentsu ) ) ( VP ( VBZ has ) ( NP ( NNP U.S. ) ( NNS subsidiaries ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP keep ) ( NP ( JJ low ) ( NNS profiles ) ) ) ) )

Dentsu has U.S. subsidiaries but they keep low profiles


( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( NP ( DT the ) ( JJ giant ) ( NN marketing ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ holds ) ( NP ( NP ( CD 25 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Japan ) ( POS 's ) ) ( ADJP ( ADJP ( QP ( CD 4.4 ) ( CD trillion ) ) ( NNS yen ) ) ( PRN ( ADJP ( QP ( CD 30.96 ) ( CD billion ) ) ) ) ) ( NN advertising ) ( NN industry ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( NP ( NP ( DT the ) ( NN acquisition ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN advertising ) ( NN network ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP U.S. ) ) ( CC or ) ( NP ( NNP Europe ) ) ) ) ) ) ) ) ) )

Now the giant marketing company which holds 25 % of Japan 's 4.4 trillion yen 30.96 billion advertising industry is considering the acquisition of an advertising network in the U.S. or Europe


( S ( SBAR-NOM-SBJ ( WHNP-1 ( WP What ) ) ( S ( VP ( VBZ is ) ( VP ( VBG driving ) ( NP ( NP ( NNP Dentsu ) ( POS 's ) ) ( JJ international ) ( NN expansion ) ) ) ) ) ) ( ADVP ( RB largely ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( PRT ( RP up ) ) ( PP-CLR ( IN with ) ( NP ( PRP$ its ) ( JJ Japanese ) ( NNS clients ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP grow ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP U.S. ) ) ( CC and ) ( NP ( NNP Europe ) ) ) ) ) ) ) ) ) ) ) ) )

What is driving Dentsu 's international expansion largely is the need to keep up with its Japanese clients as they grow in the U.S. and Europe


( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB do ) ( NP ( NN something ) ) ) ) ) ) ( NP-SBJ-2 ( PRP we ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB catch ) ( PRT ( RP up ) ) ( PP-CLR ( IN with ) ( NP ( NN demand ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( DT a ) ( NNP Dentsu ) ( NN spokesman ) ) )

If we do n't do something we wo n't be able to catch up with demand says a Dentsu spokesman


( S ( NP-SBJ ( PRP$ Our ) ( NN president ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN acquisition ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( JJ effective ) ( NN method ) ) ) ) ) ) )

Our president said acquisition is an effective method


( S ( S ( NP-TMP ( JJ Last ) ( NN year ) ) ( NP-SBJ ( NP ( NNP Dentsu ) ( POS 's ) ) ( JJ foreign ) ( NN business ) ) ( VP ( VBD accounted ) ( PP-CLR ( IN for ) ( NP ( NP ( QP ( JJR less ) ( IN than ) ( CD 10 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( JJ total ) ( NNS billings ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBG aiming ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 20 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ near ) ( NN future ) ) ) ) ) ) ) ) )

Last year Dentsu 's foreign business accounted for less than 10 % of total billings but the company is aiming at 20 % in the near future


( S ( ADVP-TMP ( RB So ) ( RB far ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ appears ) ( ADJP-PRD ( JJ cautious ) ( PP ( IN about ) ( S-NOM ( VP ( VBG taking ) ( NP ( DT the ) ( JJ big ) ( NN step ) ) ) ) ) ) ) )

So far it appears cautious about taking the big step


( S ( PP ( IN For ) ( NP ( NN example ) ) ) ( NP-SBJ ( DT the ) ( NN spokesman ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ-1 ( NNP Dentsu ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN approached ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS banks ) ) ( CC and ) ( NP ( NNS securities ) ( NNS companies ) ) ) ) ( NP-TMP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS times ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB invest ) ( PP-CLR ( IN in ) ( NP ( DT the ) ( JJ troubled ) ( JJ British ) ( NN marketing ) ( NN group ) ( NNP Saatchi ) ( CC & ) ( NNP Saatchi ) ( NNP PLC ) ) ) ) ) ) ) ) ) ) ) ) )

For example the spokesman says Dentsu has been approached by banks and securities companies a number of times to invest in the troubled British marketing group Saatchi & Saatchi PLC


( S ( CC But ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Dentsu ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBD looked ) ( ADVP-MNR ( RB seriously ) ) ( PP-CLR ( IN at ) ( NP ( NNP Saatchi ) ) ) ) ) ) ) ) )

But he said Dentsu has n't looked seriously at Saatchi


( S ( SBAR-ADV ( IN Though ) ( S ( NP-SBJ ( NNP Dentsu ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBN has ) ( NP ( DT no ) ( JJ concrete ) ( NX ( NX ( NN acquisition ) ( NNS plans ) ) ( CC or ) ( NX ( NNS deadlines ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG laying ) ( NP ( NP ( DT the ) ( NN groundwork ) ) ( PP ( IN for ) ( NP ( JJ international ) ( NN growth ) ) ) ) ) ) )

Though Dentsu says it has no concrete acquisition plans or deadlines it is laying the groundwork for international growth


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ is ) ( VP ( VBG setting ) ( PRT ( RP up ) ) ( NP ( NP ( DT a ) ( JJ special ) ( NN team ) ) ( PP ( IN in ) ( NP ( NP ( NN charge ) ) ( PP ( IN of ) ( NP ( NP ( JJ international ) ( NNS markets ) ) ( CC and ) ( S-NOM ( VP ( VBG training ) ( S ( NP-SBJ ( NNS workers ) ) ( VP ( TO to ) ( VP ( VB do ) ( NP ( NN business ) ) ( ADVP-LOC ( RB abroad ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It is setting up a special team in charge of international markets and training workers to do business abroad


( S ( PP ( IN For ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP March ) ( CD 31 ) ) ) ) ) ( S ( NP-SBJ ( NNP Dentsu ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 19 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 8.9 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 7.5 ) ( CD billion ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( VBD jumped ) ( NP-EXT ( CD 59 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 102 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 64 ) ( CD million ) ) ) ) ) ) )

For the year ended March 31 Dentsu sales rose 19 % to 8.9 billion from 7.5 billion and net income jumped 59 % to 102 million from 64 million


( S ( NP-SBJ ( NP ( NNP Dentsu ) ( POS 's ) ) ( NNS billings ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( JJR larger ) ) ( PP ( IN than ) ( NP ( NP ( DT those ) ) ( PP ( IN of ) ( NP ( NP ( NNP Young ) ( CC & ) ( NNP Rubicam ) ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJ second-largest ) ( NN ad ) ( NN agency ) ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN survey ) ) ( PP ( IN by ) ( NP ( DT the ) ( NN publication ) ( NNP Advertising ) ( NNP Age ) ) ) ) ) ) ) )

Dentsu 's billings last year were larger than those of Young & Rubicam the world 's second-largest ad agency according to a survey by the publication Advertising Age


( S ( CC But ) ( NP-SBJ ( NP ( NN success ) ( RB overseas ) ) ( PP-LOC ( IN in ) ( NP ( JJ unfamiliar ) ( NNS markets ) ) ) ) ( VP ( MD could ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( JJR trickier ) ) ( PP ( IN than ) ( PP ( IN for ) ( NP ( NP ( JJ other ) ( NNS industries ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNS manufacturers ) ) ) ) ) ) ) ) ) )

But success overseas in unfamiliar markets could be trickier than for other industries such as manufacturers