( S ( NP-SBJ ( DT The ) ( NNP GASB ) ) ( VP ( VBD had ) ( VP ( VBN told ) ( NP ( NNS governments ) ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB follow ) ( NP ( NP ( NNP FASB ) ( NNS rules ) ) ( PP ( IN on ) ( NP ( NN depreciation ) ) ) ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG making ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ difficult ) ) ( SBAR-2 ( IN for ) ( S ( NP-SBJ ( JJ bond-rating ) ( NNS agencies ) ) ( VP ( TO to ) ( VP ( VB compare ) ( NP ( NP ( UCP ( JJ private ) ( CC and ) ( JJ state-owned ) ) ( NNS schools ) ) ( SBAR ( WHNP-158 ( WDT which ) ) ( S ( VP ( VBP compete ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ public ) ( NN bond ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The GASB had told governments they did n't have to follow FASB rules on depreciation making it difficult for bond-rating agencies to compare private and state-owned schools which compete in the public bond market


( S ( NP-SBJ ( DT The ) ( NN foundation ) ( NN vote ) ) ( VP ( VP ( VBZ is ) ( ADJP-PRD ( JJ effective ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ affected ) ( NN government ) ( NNS entities ) ) ( PP ( IN with ) ( NP ( NP ( JJ fiscal ) ( NNS years ) ) ( SBAR ( WHNP-159 ( WDT that ) ) ( S ( VP ( VBP begin ) ( S ( VP ( VBG starting ) ( NP-TMP ( JJ next ) ( NNP Jan. ) ( CD 1 ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ makes ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ financial ) ( NNS results ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS hospitals ) ( NNS colleges ) ( CC and ) ( NNS schools ) ) ) ) ( ADJP-PRD ( JJR easier ) ( S ( VP ( TO to ) ( VP ( VB compare ) ( PP-CLR ( IN with ) ( NP ( JJ for-profit ) ( NNS businesses ) ) ) ) ) ) ) ) ) ) )

The foundation vote is effective for the affected government entities with fiscal years that begin starting next Jan. 1 and makes the financial results of the hospitals colleges and schools easier to compare with for-profit businesses


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( MD may ) ( VP ( VB lead ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ separate ) ( JJ financial ) ( NNS reports ) ) ( VP ( VBN based ) ( PP-CLR ( IN on ) ( NP ( NP ( JJ different ) ( NNS rules ) ) ( PP ( IN for ) ( NP ( NP ( NP ( DT the ) ( NN government ) ( NNS entities ) ) ( PP ( IN under ) ( NP ( NNP FASB ) ( NNS rules ) ) ) ) ( CC and ) ( NP ( DT those ) ( RRC ( ADVP-TMP ( RB still ) ) ( PP-LOC ( IN under ) ( NP ( NNP GASB ) ( NNS rules ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But it may lead to separate financial reports based on different rules for the government entities under FASB rules and those still under GASB rules


( S ( S-TPC-1 ( S ( NP-SBJ ( NP ( NNS Managers ) ) ( PP ( IN of ) ( NP ( NN government ) ( NNS entities ) ) ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB often ) ) ( ADJP-PRD ( RBR more ) ( JJ concerned ) ( PP ( IN with ) ( NP ( DT the ) ( ADJP ( JJ political ) ( CC and ) ( JJ legal ) ) ( NN structure ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( JJ financial-report ) ( NN comparability ) ) ( PP ( IN with ) ( NP ( JJ profit-making ) ( NNS businesses ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( ADVP ( RB always ) ) ( NP-PRD ( ADJP ( RB as ) ( JJ high ) ) ( DT a ) ( NN priority ) ) ) ) ) ( NP-SBJ ( DT a ) ( NN foundation ) ( NN spokesman ) ) ( VP ( VBD said ) ) )

Managers of government entities are often more concerned with the political and legal structure and financial-report comparability with profit-making businesses is n't always as high a priority a foundation spokesman said


( S-HLN ( NP-SBJ ( NNP BUSH ) ( CC AND ) ( NNP GORBACHEV ) ) ( VP ( MD WILL ) ( VP ( VB HOLD ) ( NP ( NP ( CD two ) ( NNS days ) ) ( PP ( IN of ) ( NP ( JJ informal ) ( NNS talks ) ) ) ) ( NP-TMP ( JJ next ) ( NN month ) ) ) ) )

BUSH AND GORBACHEV WILL HOLD two days of informal talks next month


( S ( NP-SBJ ( DT The ) ( NN president ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( PRP he ) ) ( CC and ) ( NP ( DT the ) ( NNP Kremlin ) ( NN leader ) ) ) ( VP ( MD would ) ( VP ( VB meet ) ( NP-TMP ( NNP Dec. ) ( CD 2-3 ) ) ( PP-LOC ( IN aboard ) ( NP ( NP ( UCP ( NNP U.S. ) ( CC and ) ( NNP Soviet ) ) ( JJ naval ) ( NNS vessels ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Mediterranean ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB discuss ) ( NP ( NP ( DT a ) ( JJ wide ) ( NN range ) ) ( PP ( IN of ) ( NP ( NNS issues ) ) ) ) ( PP-MNR ( IN without ) ( NP ( DT a ) ( JJ formal ) ( NN agenda ) ) ) ) ) ) ) ) ) ) ) )

The president said that he and the Kremlin leader would meet Dec. 2-3 aboard U.S. and Soviet naval vessels in the Mediterranean to discuss a wide range of issues without a formal agenda


( S ( NP-SBJ-1 ( DT A ) ( JJ simultaneous ) ( NN announcement ) ) ( VP ( VBD was ) ( VP ( VBN made ) ( PP-LOC ( IN in ) ( NP ( NNP Moscow ) ) ) ) ) )

A simultaneous announcement was made in Moscow


( S ( NP-SBJ ( NNP Bush ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( CC neither ) ( PRP he ) ( CC nor ) ( NNP Gorbachev ) ) ( VP ( VBD expected ) ( NP ( DT any ) ( JJ substantial ) ( NNS decisions ) ( CC or ) ( NNS agreements ) ) ) ) ) ) )

Bush said that neither he nor Gorbachev expected any substantial decisions or agreements


( S ( NP-SBJ ( DT The ) ( JJ seaborne ) ( NNS meetings ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB disrupt ) ( NP ( NP ( NNS plans ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ formal ) ( NN summit ) ) ( NP-TMP ( JJ next ) ( NN spring ) ( CC or ) ( NN summer ) ) ( SBAR-LOC ( WHPP-1 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-2 ( DT an ) ( NN arms-control ) ( NN treaty ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN completed ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The seaborne meetings wo n't disrupt plans for a formal summit next spring or summer at which an arms-control treaty is likely to be completed


( S ( NP-SBJ-1 ( DT The ) ( CD two ) ( NNS leaders ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB discuss ) ( NP ( NP ( NP ( NNS changes ) ) ( VP ( VBG sweeping ) ( NP-LOC-CLR ( DT the ) ( JJ East ) ( NN bloc ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NP ( NNS human-rights ) ( NNS issues ) ) ( NP ( JJ regional ) ( NNS disputes ) ) ( CC and ) ( NP ( JJ economic ) ( NN cooperation ) ) ) ) ) ) ) ) ) )

The two leaders are expected to discuss changes sweeping the East bloc as well as human-rights issues regional disputes and economic cooperation


( S ( NP-SBJ ( NP ( NNP Israel ) ( POS 's ) ) ( NN army ) ) ( VP ( VBD lifted ) ( NP ( NP ( DT a ) ( NN blockade ) ) ( PP-LOC ( IN around ) ( NP ( NP ( DT a ) ( JJ Palestinian ) ( NN town ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ occupied ) ( NNP West ) ( NNP Bank ) ) ) ) ) ) ( S-ADV ( VP ( VBG ending ) ( NP ( NP ( DT a ) ( JJ 42-day ) ( NN campaign ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG seizing ) ( NP ( NP ( NNS cars ) ) ( NP ( NN furniture ) ) ( CC and ) ( NP ( JJ other ) ( NNS goods ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB crush ) ( NP ( DT a ) ( NN tax ) ( NN boycott ) ) ) ) ) ) ) ) ) ) ) ) )

Israel 's army lifted a blockade around a Palestinian town in the occupied West Bank ending a 42-day campaign of seizing cars furniture and other goods to crush a tax boycott


( S ( SBAR-TMP ( IN While ) ( S ( NP-SBJ ( NNS residents ) ) ( VP ( VBD claimed ) ( NP ( DT a ) ( NN victory ) ) ) ) ) ( NP-SBJ ( JJ military ) ( NNS authorities ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD had ) ( VP ( VBN confiscated ) ( NP ( NP ( DT the ) ( NN equivalent ) ) ( PP ( IN of ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 1.5 ) ( CD million ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB make ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJ unpaid ) ( NNS taxes ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

While residents claimed a victory military authorities said they had confiscated the equivalent of more than 1.5 million to make up for the unpaid taxes


( S ( NP-SBJ ( ADJP ( JJ East ) ( JJ German ) ) ( NN leader ) ( NNP Krenz ) ) ( VP ( VBD arrived ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Moscow ) ) ) ( PP-PRP ( IN for ) ( NP ( NP ( NNS talks ) ) ( NP-TMP ( NN today ) ) ( PP ( IN with ) ( NP ( NNP Gorbachev ) ) ) ( PP ( IN on ) ( NP ( NN restructuring ) ( NNS proposals ) ) ) ) ) ) )

East German leader Krenz arrived in Moscow for talks today with Gorbachev on restructuring proposals


( S ( PP-LOC ( IN In ) ( NP ( NNP East ) ( NNP Berlin ) ) ) ( NP-SBJ ( NNP Communist ) ( NNP Party ) ( NNS officials ) ) ( VP ( VBD considered ) ( S ( VP ( VBG legalizing ) ( NP ( NP ( NNP New ) ( NNP Forum ) ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJS largest ) ( NN opposition ) ( NN alliance ) ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( QP ( RB about ) ( CD 20,000 ) ) ( NNS demonstrators ) ) ( VP ( VBD staged ) ( NP ( NNS protests ) ) ( PP-LOC ( IN in ) ( NP ( CD three ) ( NNS cities ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB press ) ( NP ( NP ( NNS demands ) ) ( PP ( IN for ) ( NP ( JJ democratic ) ( NNS freedoms ) ) ) ) ) ) ) ) ) ) ) )

In East Berlin Communist Party officials considered legalizing New Forum the country 's largest opposition alliance as about 20,000 demonstrators staged protests in three cities to press demands for democratic freedoms


( S ( NP-SBJ ( DT The ) ( NNP House ) ) ( VP ( VBD approved ) ( NP ( NP ( DT a ) ( JJ permanent ) ( NN smoking ) ( NN ban ) ) ( PP-LOC ( IN on ) ( NP ( ADJP ( RB nearly ) ( DT all ) ) ( JJ domestic ) ( NN airline ) ( NNS routes ) ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 27.1 ) ( CD billion ) ) ) ( NN transportation ) ( NN bill ) ) ( SBAR ( WHNP-122 ( WDT that ) ) ( S ( VP ( MD must ) ( ADVP-TMP ( RB still ) ) ( VP ( VB overcome ) ( NP ( NP ( NN budget ) ( NNS obstacles ) ) ( PP-LOC ( IN in ) ( NP ( NNP Congress ) ) ) ) ) ) ) ) ) ) ) ) ) )

The House approved a permanent smoking ban on nearly all domestic airline routes as part of a 27.1 billion transportation bill that must still overcome budget obstacles in Congress


( S ( NP-SBJ ( DT The ) ( NN chamber ) ) ( ADVP ( RB also ) ) ( VP ( VBD sent ) ( PP-DTV ( TO to ) ( NP ( NNP Bush ) ) ) ( NP ( NP ( DT a ) ( ADJP ( QP ( RB nearly ) ( CD 67 ) ( CD billion ) ) ) ( JJ fiscal ) ( CD 1990 ) ( NN measure ) ) ( SBAR ( WHNP-123 ( WDT that ) ) ( S ( VP ( VBZ includes ) ( NP ( NP ( DT the ) ( JJ first ) ( NN construction ) ( NNS funds ) ) ( PP ( IN for ) ( NP ( DT a ) ( NN space ) ( NN station ) ) ) ) ) ) ) ) ) )

The chamber also sent to Bush a nearly 67 billion fiscal 1990 measure that includes the first construction funds for a space station


( S ( NP-SBJ ( NP ( NNP Nicaragua ) ( POS 's ) ) ( NNP Ortega ) ) ( VP ( VBD postponed ) ( PP-TMP-CLR ( IN until ) ( NP ( NN today ) ) ) ( NP ( NP ( DT a ) ( NN decision ) ) ( PP ( IN on ) ( SBAR ( IN whether ) ( S ( VP ( TO to ) ( VP ( VB end ) ( NP ( NP ( DT a ) ( JJ 19-month-old ) ( NN cease-fire ) ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( NN conflict ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Contra ) ( NNS rebels ) ) ) ) ) ) ) ) ) ) ) ) ) )

Nicaragua 's Ortega postponed until today a decision on whether to end a 19-month-old cease-fire in the conflict with the Contra rebels


( S ( PP-LOC ( IN In ) ( NP ( NNP Washington ) ) ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Senate ) ) ( VP ( VBD voted ) ( S ( VP ( TO to ) ( VP ( VB condemn ) ( NP ( NP ( NNP Ortega ) ( POS 's ) ) ( NN threat ) ( S ( VP ( TO to ) ( VP ( VB cancel ) ( NP ( DT the ) ( NN truce ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Bush ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD would ) ( VP ( VB review ) ( NP ( NP ( NNP U.S. ) ( NN policy ) ) ( PP ( IN toward ) ( NP ( NNP Managua ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( NN possibility ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG renewing ) ( NP ( NP ( JJ military ) ( NN aid ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNS rebels ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In Washington the Senate voted to condemn Ortega 's threat to cancel the truce and Bush said he would review U.S. policy toward Managua including the possibility of renewing military aid to the rebels


( S ( NP-SBJ ( JJ Chinese ) ( NN leader ) ( NNP Deng ) ) ( VP ( VBD told ) ( NP ( JJ former ) ( NNP President ) ( NNP Nixon ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP U.S. ) ) ( VP ( VBD was ) ( ADVP ( RB deeply ) ) ( VP ( VBN involved ) ( PP-CLR ( IN in ) ( NP ( NP ( DT the ) ( NX ( NX ( NN turmoil ) ) ( CC and ) ( NX ( JJ counterrevolutionary ) ( NN rebellion ) ) ) ) ( SBAR ( WHNP-124 ( WDT that ) ) ( S ( VP ( VBD gripped ) ( NP ( NNP Beijing ) ) ( NP-TMP ( JJ last ) ( NN spring ) ) ) ) ) ) ) ) ) ) ) ) )

Chinese leader Deng told former President Nixon that the U.S. was deeply involved in the turmoil and counterrevolutionary rebellion that gripped Beijing last spring


( S ( NP-SBJ-1 ( NNP Nixon ) ) ( PP-TMP ( IN on ) ( NP ( NP ( DT the ) ( JJ fourth ) ( NN day ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ private ) ( NN visit ) ) ( PP ( TO to ) ( NP ( NNP China ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( NN damage ) ) ( PP ( TO to ) ( NP ( JJ Sino-U.S. ) ( NNS relations ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB very ) ( JJ great ) ) ) ) ) ( S-ADV ( VP ( VBG calling ) ( S ( NP-SBJ ( DT the ) ( NN situation ) ) ( NP-PRD ( NP ( DT the ) ( RBS most ) ( JJ serious ) ) ( PP-TMP ( IN since ) ( NP ( CD 1972 ) ) ) ) ) ) ) ) )

Nixon on the fourth day of a private visit to China said that damage to Sino-U.S. relations was very great calling the situation the most serious since 1972


( S ( NP-SBJ ( NP ( NNP Afghanistan ) ( POS 's ) ) ( NNS troops ) ) ( VP ( VBD broke ) ( PP-CLR ( IN through ) ( NP ( NP ( DT a ) ( NN guerrilla ) ( NN blockade ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ strategic ) ( NNP Salang ) ( NNP Highway ) ) ) ) ) ( S-ADV ( VP ( VBG allowing ) ( S ( NP-SBJ ( NP ( NNS trucks ) ) ( VP ( VBG carrying ) ( NP ( NP ( NN food ) ) ( CC and ) ( NP ( JJ other ) ( NNS necessities ) ) ) ) ) ( VP ( TO to ) ( VP ( VB reach ) ( NP ( NNP Kabul ) ) ( PP-TMP ( IN after ) ( NP ( NP ( DT a ) ( NN missile ) ( NN attack ) ) ( PP ( IN on ) ( NP ( NN rebel ) ( NNS strongholds ) ) ) ) ) ) ) ) ) ) ) )

Afghanistan 's troops broke through a guerrilla blockade on the strategic Salang Highway allowing trucks carrying food and other necessities to reach Kabul after a missile attack on rebel strongholds


( S ( NP-SBJ ( NP ( DT The ) ( NN convoy ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 100 ) ) ( NNS vehicles ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NNS deliveries ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN capital ) ) ) ( PP-TMP ( IN in ) ( NP ( QP ( RB about ) ( CD 10 ) ) ( NNS days ) ) ) ) ) ) ) ) ) )

The convoy of about 100 vehicles was the first to make deliveries to the capital in about 10 days


( S ( NP-SBJ-1 ( NP ( NNP Turkey ) ( POS 's ) ) ( NN legislature ) ) ( VP ( VBD elected ) ( NP ( NNP Prime ) ( NNP Minister ) ( NNP Ozal ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJ first ) ( JJ civilian ) ( NN president ) ) ( PP-TMP ( IN since ) ( NP ( CD 1960 ) ) ) ) ) ( S-ADV ( VP ( VBG opening ) ( NP ( NP ( DT the ) ( NN way ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN change ) ) ( PP ( IN of ) ( NP ( NN government ) ) ) ( PP-LOC ( IN under ) ( NP ( NP ( DT a ) ( JJ new ) ( NN premier ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD will ) ( VP ( VB select ) ) ) ) ) ) ) ) ) ) ) ) ) )

Turkey 's legislature elected Prime Minister Ozal as the country 's first civilian president since 1960 opening the way for a change of government under a new premier he will select


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN vote ) ) ( PP-LOC ( IN in ) ( NP ( NNP Ankara ) ) ) ) ( VP ( VBD was ) ( VP ( VBN boycotted ) ( PP ( IN by ) ( NP-LGS ( NP ( NN opposition ) ( NNS politicians ) ) ( SBAR ( WHNP-125 ( WP who ) ) ( S ( VP ( VBD vowed ) ( S ( VP ( TO to ) ( VP ( VB oust ) ( NP ( NNP Ozal ) ) ) ) ) ) ) ) ) ) ) ) )

The vote in Ankara was boycotted by opposition politicians who vowed to oust Ozal


( S ( NP-SBJ-1 ( PRP He ) ) ( VP ( VBZ begins ) ( NP ( PRP$ his ) ( JJ seven-year ) ( NN term ) ) ( NP-TMP ( NNP Nov. ) ( CD 9 ) ) ( S-ADV ( VP ( VBG succeeding ) ( NP ( NNP Kenan ) ( NNP Evren ) ) ) ) ) )

He begins his seven-year term Nov. 9 succeeding Kenan Evren


( S ( NP-SBJ ( NP ( NNP South ) ( NNP Africa ) ( POS 's ) ) ( NN government ) ) ( VP ( VBD dismissed ) ( NP ( NP ( NNS demands ) ) ( PP ( IN by ) ( NP ( NP ( JJ right-wing ) ( NNPS Conservatives ) ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJ main ) ( NN opposition ) ( NN party ) ) ) ) ( PP ( IN for ) ( NP ( NP ( NN emergency ) ( NNS talks ) ) ( PP ( IN on ) ( NP ( NP ( NP ( NNP Pretoria ) ( POS 's ) ) ( JJ recent ) ( NN tolerance ) ) ( PP ( IN of ) ( NP ( NN dissent ) ) ) ) ) ) ) ) ) )

South Africa 's government dismissed demands by right-wing Conservatives the nation 's main opposition party for emergency talks on Pretoria 's recent tolerance of dissent


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( ADVP ( RB also ) ) ( VP ( VBD urged ) ( S ( NP-SBJ ( NNS whites ) ) ( VP ( TO to ) ( VP ( VB refrain ) ( PP-CLR ( IN from ) ( NP ( NP ( NN panic ) ) ( PP ( IN over ) ( NP ( NP ( JJ growing ) ( JJ black ) ( NNS protests ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( DT the ) ( JJ massive ) ( JJ anti-apartheid ) ( NN rally ) ) ( NP-TMP ( NNP Sunday ) ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NNS outskirts ) ) ( PP ( IN of ) ( NP ( NNP Soweto ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The government also urged whites to refrain from panic over growing black protests such as the massive anti-apartheid rally Sunday on the outskirts of Soweto


( S ( NP-SBJ ( NP ( NNP Researchers ) ) ( PP-LOC ( IN in ) ( NP ( NNP Belgium ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBN developed ) ( NP ( NP ( DT a ) ( JJ genetic ) ( NN engineering ) ( NN technique ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG creating ) ( NP ( JJ hybrid ) ( NNS plants ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS crops ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NN cotton ) ( NNS soybeans ) ( CC and ) ( NN rice ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Researchers in Belgium said they have developed a genetic engineering technique for creating hybrid plants for a number of crops such as cotton soybeans and rice


( S ( NP-SBJ ( NP ( DT The ) ( NNS scientists ) ) ( PP-LOC ( IN at ) ( NP ( NNP Plant ) ( NNP Genetic ) ( NNP Systems ) ( NNP N.V. ) ) ) ) ( VP ( VBD isolated ) ( NP ( NP ( DT a ) ( NN gene ) ) ( SBAR ( WHNP-126 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB lead ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( NN generation ) ) ( PP ( IN of ) ( NP ( NP ( NNS plants ) ) ( VP ( VBG possessing ) ( NP ( DT a ) ( JJ high-production ) ( NN trait ) ) ) ) ) ) ) ) ) ) ) ) ) )

The scientists at Plant Genetic Systems N.V. isolated a gene that could lead to a generation of plants possessing a high-production trait


( S ( S-TPC-1 ( NP-SBJ ( DT A ) ( NN bomb ) ) ( VP ( VBD exploded ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( JJ leftist ) ( NN union ) ( NN hall ) ) ( PP-LOC ( IN in ) ( NP ( NNP San ) ( NNP Salvador ) ) ) ) ) ( S-ADV ( VP ( VP ( VBG killing ) ( NP ( QP ( IN at ) ( JJS least ) ( CD eight ) ) ( NNS people ) ) ) ( CC and ) ( VP ( VBG injuring ) ( NP ( NP ( QP ( RB about ) ( CD 30 ) ) ( NNS others ) ) ( PP ( VBG including ) ( NP ( CD two ) ( NNPS Americans ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS authorities ) ) ( VP ( VBD said ) ) )

A bomb exploded at a leftist union hall in San Salvador killing at least eight people and injuring about 30 others including two Americans authorities said


( S ( NP-SBJ ( NP ( DT The ) ( NN blast ) ) ( SBAR ( WHNP-127 ( WDT which ) ) ( S ( VP ( VBD wrecked ) ( NP ( NP ( DT the ) ( NN opposition ) ( NN labor ) ( NN group ) ( POS 's ) ) ( NNS offices ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJS latest ) ) ( PP ( IN in ) ( NP ( NP ( DT a ) ( NN series ) ) ( PP ( IN of ) ( NP ( NNS attacks ) ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NNP El ) ( NNP Salvador ) ( POS 's ) ) ( JJ 10-year-old ) ( JJ civil ) ( NN war ) ) ) ) ) )

The blast which wrecked the opposition labor group 's offices was the latest in a series of attacks in El Salvador 's 10-year-old civil war


( S ( NP-SBJ-1 ( NP ( NNP Hungary ) ( POS 's ) ) ( NNP Parliament ) ) ( VP ( VBD voted ) ( S ( VP ( TO to ) ( VP ( VB hold ) ( NP ( NP ( DT a ) ( JJ national ) ( NN referendum ) ) ( PP ( IN on ) ( NP ( NP ( DT an ) ( NN election ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB fill ) ( NP ( NP ( DT the ) ( JJ new ) ( NN post ) ) ( PP ( IN of ) ( NP ( NN president ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Hungary 's Parliament voted to hold a national referendum on an election to fill the new post of president


( S ( NP-SBJ-2 ( NP ( DT The ) ( NN balloting ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB decide ) ( SBAR ( WHADVP-1 ( WRB when ) ( CC and ) ( WRB how ) ) ( S ( VP ( TO to ) ( VP ( VB fill ) ( NP ( NP ( DT the ) ( NN position ) ) ( SBAR ( WHNP-128 ( WDT which ) ) ( S ( VP ( VBZ replaces ) ( NP ( DT a ) ( JJ collective ) ( NN presidency ) ) ( PP-LOC ( IN under ) ( NP ( NP ( DT a ) ( NN pact ) ) ( VP ( VBN signed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( VBG ruling ) ( NNPS Socialists ) ) ( CC and ) ( NP ( NN opposition ) ( NNS groups ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN held ) ( NP-TMP ( NNP Nov ) ) ) ) ) ) ) )

The balloting to decide when and how to fill the position which replaces a collective presidency under a pact signed by the ruling Socialists and opposition groups is to be held Nov


( S ( NP-SBJ ( DT The ) ( NNP State ) ( NNP Department ) ) ( VP ( VBD denied ) ( NP ( NN asylum ) ) ( PP-DTV ( TO to ) ( NP ( NP ( DT a ) ( JJ Vietnamese ) ( NN man ) ) ( SBAR ( WHNP-129 ( WP who ) ) ( S ( VP ( VBD escaped ) ( PP-CLR ( IN from ) ( NP ( PRP$ his ) ( NN homeland ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG lashing ) ( NP ( PRP himself ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN rudder ) ( NN housing ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN tanker ) ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( CD two ) ( NNS days ) ) ( PP-LOC ( IN in ) ( NP ( NN monsoon ) ( NNS seas ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The State Department denied asylum to a Vietnamese man who escaped from his homeland by lashing himself to the rudder housing of a tanker for two days in monsoon seas


( S ( NP-SBJ ( NP ( DT A ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( NP ( JJ Democratic ) ( NNP Sen. ) ( NNP Pell ) ) ( PP ( IN of ) ( NP ( NNP Rhode ) ( NNP Island ) ) ) ) ) ) ( VP ( VBD said ) ( ADVP ( RB however ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Immigration ) ( CC and ) ( NNP Naturalization ) ( NNP Service ) ) ( VP ( MD would ) ( VP ( VB review ) ( NP ( NP ( DT the ) ( NN stowaway ) ( POS 's ) ) ( NN request ) ) ) ) ) ) ) )

A spokesman for Democratic Sen. Pell of Rhode Island said however that the Immigration and Naturalization Service would review the stowaway 's request


( S ( NP-SBJ ( NNP Intelogic ) ( NNP Trace ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG exploring ) ( NP ( NP ( NNS alternatives ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB maximize ) ( NP ( NN shareholder ) ( NN value ) ) ) ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( JJ possible ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) )

Intelogic Trace Inc. said it is exploring alternatives to maximize shareholder value including the possible sale of the company


( S ( CC But ) ( NP-SBJ ( NP ( NNP Asher ) ( NNP B. ) ( NNP Edelman ) ) ( SBAR ( WHNP-89 ( WP who ) ) ( S ( VP ( VBZ controls ) ( NP ( NP ( QP ( RB about ) ( CD 16 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NAC-LOC ( NNP San ) ( NNP Antonio ) ( NNP Texas ) ) ( JJ computer-servicing ) ( NN company ) ) ) ) ) ) ) ) ( VP ( VBD insisted ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN announcement ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB have ) ( NP ( NP ( NN anything ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB do ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( JJ ongoing ) ( NN battle ) ) ( PP ( IN for ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NNP Datapoint ) ( NNP Corp ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But Asher B. Edelman who controls about 16 % of the San Antonio Texas computer-servicing company insisted that the announcement did n't have anything to do with the ongoing battle for control of Datapoint Corp


( S ( NP-SBJ ( NP ( DT Any ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNP Intelogic ) ) ) ) ( VP ( MD could ) ( VP ( VB have ) ( NP ( NP ( DT an ) ( NN impact ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN battle ) ) ( PP ( IN between ) ( NP ( NP ( NNP Mr. ) ( NNP Edelman ) ) ( CC and ) ( NP ( NNP New ) ( NNP York ) ( NN attorney ) ( NNP Martin ) ( NNP Ackerman ) ) ) ) ( PP ( IN for ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NNP Datapoint ) ) ) ) ) ) ) ) ) ) )

Any sale of Intelogic could have an impact on the battle between Mr. Edelman and New York attorney Martin Ackerman for control of Datapoint


( S ( NP-SBJ ( NNP Intelogic ) ) ( VP ( VBZ holds ) ( NP ( NP ( CD 27.5 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Datapoint ) ( POS 's ) ) ( JJ common ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) )

Intelogic holds 27.5 % of Datapoint 's common shares outstanding


( S ( NP-SBJ ( NNP Mr. ) ( NNP Edelman ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN decision ) ) ( VP ( VBZ has ) ( NP ( NP ( NN nothing ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB do ) ( PP-CLR ( IN with ) ( NP ( NNP Marty ) ( NNP Ackerman ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Edelman said the decision has nothing to do with Marty Ackerman


( S ( NP-SBJ ( NNP Mr. ) ( NNP Ackerman ) ) ( VP ( VBD contended ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ direct ) ( NN response ) ) ( PP ( TO to ) ( NP ( PRP$ his ) ( NNS efforts ) ( S ( VP ( TO to ) ( VP ( VB gain ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NNP Datapoint ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Ackerman contended that it was a direct response to his efforts to gain control of Datapoint


( S ( NP-SBJ ( NNP Intelogic ) ) ( VP ( VBD was ) ( VP ( VBN spun ) ( PRT ( RP off ) ) ( PP-CLR ( IN from ) ( NP ( NNP Datapoint ) ) ) ( ADVP-TMP ( NP ( CD four ) ( NNS years ) ) ( RB ago ) ) ( SBAR-TMP ( ADVP ( RB shortly ) ) ( IN after ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Edelman ) ) ( VP ( VBD took ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NNP Datapoint ) ) ) ) ) ) ) ) ) )

Intelogic was spun off from Datapoint four years ago shortly after Mr. Edelman took control of Datapoint


( S ( S-TPC-1 ( NP-SBJ ( NNP West ) ( NNP Germany ) ) ( VP ( MD will ) ( VP ( VB repeal ) ( NP ( NP ( DT the ) ( JJ unpopular ) ( NN turnover ) ( NN tax ) ) ( PP ( IN on ) ( NP ( NNS securities ) ( NNS transactions ) ) ) ) ( PP-TMP ( IN as ) ( PP ( IN of ) ( NP ( NNP Jan. ) ( CD 1 ) ( CD 1991 ) ) ) ) ) ) ) ( NP-SBJ ( NNP Economics ) ( NNP Minister ) ( NNP Helmut ) ( NNP Haussmann ) ) ( VP ( VBD said ) ) )

West Germany will repeal the unpopular turnover tax on securities transactions as of Jan. 1 1991 Economics Minister Helmut Haussmann said


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD will ) ( ADVP ( RB also ) ) ( VP ( VB repeal ) ( NP ( NP ( DT the ) ( ADJP ( CD 1 ) ( NN % ) ) ( NN transaction ) ( NN tax ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ first-time ) ( NN purchase ) ) ( PP ( IN of ) ( NP ( NP ( NNS stakes ) ) ( PP-LOC ( IN in ) ( NP ( NNS companies ) ) ) ) ) ) ) ) ) ) ) ) ) )

He said the government will also repeal the 1 % transaction tax on the first-time purchase of stakes in companies


( S ( NP-SBJ ( DT The ) ( NN announcement ) ) ( VP ( VBZ follows ) ( NP ( NP ( JJ several ) ( NNS comments ) ) ( PP ( IN by ) ( NP ( NN government ) ( NNS officials ) ) ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD will ) ( VP ( VB speed ) ( PRT ( RP up ) ) ( NP ( NP ( DT the ) ( NN repeal ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN tax ) ) ) ( SBAR ( WHNP-7 ( WDT which ) ) ( S ( VP ( VBD was ) ( ADVP ( RB originally ) ) ( VP ( VBN scheduled ) ( S ( VP ( TO to ) ( VP ( VB fall ) ( PP-TMP ( IN with ) ( NP ( NP ( DT the ) ( NN start ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ single ) ( JJ internal ) ( NN market ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP European ) ( NNP Community ) ) ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1992 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The announcement follows several comments by government officials that the government will speed up the repeal of the tax which was originally scheduled to fall with the start of the single internal market in the European Community at the end of 1992


( S ( NP-SBJ-1 ( DT The ) ( JJ securities-turnover ) ( NN tax ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADVP-TMP ( RB long ) ) ( VP ( VBN criticized ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( ADJP ( JJ West ) ( JJ German ) ) ( JJ financial ) ( NN community ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ tends ) ( S ( VP ( TO to ) ( VP ( VB drive ) ( NP ( NP ( NNS securities ) ( NN trading ) ) ( CC and ) ( NP ( JJ other ) ( NN banking ) ( NNS activities ) ) ) ( PP-DIR ( IN out ) ( PP ( IN of ) ( NP ( NNP Frankfurt ) ) ) ) ( PP-DIR ( IN into ) ( NP ( NP ( JJ rival ) ( JJ financial ) ( NNS centers ) ) ( NP ( NP ( RB especially ) ( NNP London ) ) ( SBAR ( WHADVP-3 ( WRB where ) ) ( S ( NP-SBJ-4 ( NN trading ) ( NNS transactions ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN taxed ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The securities-turnover tax has been long criticized by the West German financial community because it tends to drive securities trading and other banking activities out of Frankfurt into rival financial centers especially London where trading transactions is n't taxed


( S ( S ( NP-SBJ ( DT The ) ( NN tax ) ) ( VP ( VBZ has ) ( VP ( VBN raised ) ( NP ( NP ( QP ( JJR less ) ( IN than ) ( CD one ) ( CD billion ) ) ( NNS marks ) ) ( PRN ( NP ( QP ( CD 545.3 ) ( CD million ) ) ) ) ) ( ADVP-TMP ( RB annually ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADJP-PRD ( JJ reluctant ) ( S ( VP ( TO to ) ( VP ( VB abolish ) ( NP ( DT the ) ( NN levy ) ) ( PP ( IN for ) ( NP ( JJ budgetary ) ( NNS concerns ) ) ) ) ) ) ) ) ) ) )

The tax has raised less than one billion marks 545.3 million annually in recent years but the government has been reluctant to abolish the levy for budgetary concerns


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NN interview ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Haussmann ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB specify ) ( NP ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NN revenue ) ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD will ) ( VP ( VB lose ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT the ) ( NN tax ) ) ( VP ( VBZ disappears ) ) ) ) ) ) ) ) ) ) ) )

In the interview Mr. Haussmann did n't specify the amount of revenue the government will lose after the tax disappears


( S ( S ( NP-SBJ-2 ( DT The ) ( JJ new ) ( NN date ) ) ( VP ( VBZ means ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN tax ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADVP-MNR ( RB officially ) ) ( VP ( VBN repealed ) ( PP-TMP ( IN before ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ current ) ( JJ parliamentary ) ( NN term ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( VP ( VBZ guarantees ) ( NP ( PRP$ its ) ( NN abolition ) ) ( SBAR-ADV ( RB even ) ( IN if ) ( S ( NP-SBJ ( DT the ) ( JJ current ) ( JJ center-right ) ( NN coalition ) ) ( VP ( VBZ loses ) ( NP ( DT the ) ( NNS elections ) ) ( PP-TMP ( IN in ) ( NP ( NNP December ) ( CD 1990 ) ) ) ) ) ) ) ) )

The new date means that the tax will be officially repealed before the end of the current parliamentary term at the end of 1990 and guarantees its abolition even if the current center-right coalition loses the elections in December 1990


( S ( NP-SBJ ( DT The ) ( JJ Soviet ) ( NN legislature ) ) ( VP ( VBD approved ) ( NP ( NP ( DT a ) ( CD 1990 ) ( NN budget ) ) ) ( NP-TMP ( NN yesterday ) ) ( SBAR-1 ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ halves ) ( NP ( PRP$ its ) ( JJ huge ) ( NN deficit ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS cuts ) ) ( PP ( IN in ) ( NP ( NP ( NN defense ) ( NN spending ) ) ( CC and ) ( NP ( NN capital ) ( NNS outlays ) ) ) ) ) ) ( SBAR-TMP ( IN while ) ( S ( VP ( VBG striving ) ( S ( VP ( TO to ) ( VP ( VB improve ) ( NP ( NP ( NNS supplies ) ) ( PP ( TO to ) ( NP ( JJ frustrated ) ( NNS consumers ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Soviet legislature approved a 1990 budget yesterday that halves its huge deficit with cuts in defense spending and capital outlays while striving to improve supplies to frustrated consumers


( FRAG ( NP-SBJ ( DT The ) ( NN vote ) ( S ( VP ( TO to ) ( VP ( VB approve ) ) ) ) ) ( X ( VBD was ) ) )

The vote to approve was


( S ( NP-SBJ-1 ( DT A ) ( NN proposal ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( NNS prices ) ) ( PP ( IN of ) ( NP ( NN beer ) ( NN tobacco ) ( CC and ) ( NNS luxuries ) ) ) ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN rejected ) ( ADVP ( RB 338-44 ) ) ) ) )

A proposal to raise prices of beer tobacco and luxuries was rejected 338-44


( S ( NP-SBJ ( NNP Soviet ) ( NNP President ) ( NNP Mikhail ) ( NNP S. ) ( NNP Gorbachev ) ) ( VP ( VBD told ) ( NP ( DT the ) ( NNS legislators ) ) ( SBAR ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD had ) ( VP ( VBN made ) ( NP ( DT a ) ( JJ good ) ( NN start ) ) ) ) ) ) ( CC but ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( RBS most ) ( JJ difficult ) ( NN work ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB still ) ) ( ADVP-PRD ( RB ahead ) ) ) ) ) ) ) )

Soviet President Mikhail S. Gorbachev told the legislators they had made a good start but that the most difficult work was still ahead


( S ( NP-SBJ ( DT The ) ( NNP Tass ) ( NN news ) ( NN agency ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( CD 1990 ) ( NN budget ) ) ( VP ( VBZ anticipates ) ( NP ( NP ( NP ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 429.9 ) ( CD billion ) ) ( NNS rubles ) ) ( PRN ( NP ( QP ( CD 693.4 ) ( CD billion ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( VBZ expenditures ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 489.9 ) ( CD billion ) ) ( NNS rubles ) ) ( PRN ( NP ( QP ( CD 790.2 ) ( CD billion ) ) ) ) ) ) ) ) ) ) ) ) )

The Tass news agency said the 1990 budget anticipates income of 429.9 billion rubles 693.4 billion and expenditures of 489.9 billion rubles 790.2 billion


( S ( NP-SBJ ( DT Those ) ( NNS figures ) ) ( VP ( VBP are ) ( SBAR-PRD ( ADVP ( RB almost ) ( RB exactly ) ) ( WHNP-33 ( WP what ) ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBD proposed ) ( PP-CLR ( TO to ) ( NP ( NNS legislators ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) )

Those figures are almost exactly what the government proposed to legislators in September


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD can ) ( VP ( VB stick ) ( PP-CLR ( IN with ) ( NP ( PRP them ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB halve ) ( NP ( NP ( DT this ) ( NN year ) ( POS 's ) ) ( ADJP ( ADJP ( QP ( CD 120 ) ( CD billion ) ) ( NN ruble ) ) ( PRN ( ADJP ( QP ( CD 193 ) ( CD billion ) ) ) ) ) ( NN deficit ) ) ) ) ) ) ) ) )

If the government can stick with them it will be able to halve this year 's 120 billion ruble 193 billion deficit


( S ( NP-SBJ ( NNS Officials ) ) ( VP ( VBD proposed ) ( NP ( NP ( NP ( NP ( DT a ) ( NN cut ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN defense ) ( NN budget ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( PP ( TO to ) ( NP ( NP ( QP ( CD 70.9 ) ( CD billion ) ) ( NNS rubles ) ) ( PRN ( NP ( QP ( CD 114.3 ) ( CD billion ) ) ) ) ) ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 77.3 ) ( CD billion ) ) ( NNS rubles ) ) ( PRN ( NP ( QP ( CD 125 ) ( CD billion ) ) ) ) ) ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NP ( JJ large ) ( NNS cuts ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS outlays ) ) ( PP ( IN for ) ( NP ( JJ new ) ( NNS factories ) ( CC and ) ( NN equipment ) ) ) ) ) ) ) ) )

Officials proposed a cut in the defense budget this year to 70.9 billion rubles 114.3 billion from 77.3 billion rubles 125 billion as well as large cuts in outlays for new factories and equipment


( S ( NP-SBJ ( NNP Tass ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ final ) ( NN budget ) ( CC and ) ( JJ economic ) ( NN plan ) ) ( VP ( VBZ calls ) ( PP-CLR ( IN for ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN production ) ) ( PP ( IN of ) ( NP ( NN consumer ) ( NNS goods ) ) ) ) ) ) ) ) ) ) ) )

Tass said the final budget and economic plan calls for a sharp increase in the production of consumer goods


( S ( NP-SBJ ( NNP Avery ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD completed ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNP Uniroyal ) ( NNP Chemical ) ( NNP Holding ) ( NNP Co. ) ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN group ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NP ( NN management ) ) ( PP ( IN of ) ( NP ( NP ( NNP Uniroyal ) ( NNP Chemical ) ( NNP Co. ) ) ( NP ( NP ( DT the ) ( NN unit ) ( POS 's ) ) ( JJ main ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Avery Inc. said it completed the sale of Uniroyal Chemical Holding Co. to a group led by management of Uniroyal Chemical Co. the unit 's main business


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD valued ) ( NP ( DT the ) ( NN transaction ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 800 ) ( CD million ) ) ) ) ) )

It valued the transaction at 800 million


( S ( NP-SBJ ( NP ( NNP Avery ) ) ( SBAR ( WHNP-160 ( WDT which ) ) ( S ( VP ( VBZ continues ) ( S ( VP ( TO to ) ( VP ( VB operate ) ( NP ( NP ( DT a ) ( NN coal ) ( NN company ) ) ( SBAR ( S ( NP-SBJ-3 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( PP-CLR ( IN at ) ( NP ( DT a ) ( NN loss ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( PP-LOC ( IN in ) ( NP ( JJ proxy ) ( NNS materials ) ) ) ( SBAR ( S ( NP-SBJ-4 ( PRP it ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB seek ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( QP ( CD one ) ( CC or ) ( JJR more ) ) ( NNS companies ) ) ) ) ) ) ) ) ) ) ) )

Avery which continues to operate a coal company it expects to sell at a loss said in proxy materials it intends to seek control of one or more companies


( S ( PP-TMP ( IN After ) ( NP ( NP ( NNS fees ) ) ( CC and ) ( NP ( NP ( NN repayment ) ) ( PP ( IN of ) ( NP ( NN debt ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Avery ) ) ( VP ( VBZ is ) ( VP ( VBN left ) ( PP-CLR ( IN with ) ( NP ( NP ( QP ( RB about ) ( CD 24 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN cash ) ( CC and ) ( NNS securities ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( NNP Uniroyal ) ( NN sale ) ) ) ) ) ) ) )

After fees and repayment of debt Avery is left with about 24 million in cash and securities from the Uniroyal sale


( S ( NP-SBJ-1 ( NNP Avery ) ) ( VP ( VP ( VBD paid ) ( NP ( NP ( QP ( CD 750 ) ( CD million ) ) ) ( PP ( VBG including ) ( NP ( JJ various ) ( ADJP ( JJ legal ) ( CC and ) ( NN financing ) ) ( NNS fees ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NNP Uniroyal ) ( NNP Chemical ) ) ( NP-LOC ( NP ( NNP Middlebury ) ) ( NP ( NNP Conn. ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ) ) ) ( NP ( NP ( DT a ) ( NN move ) ) ( SBAR ( WHNP-161 ( WDT that ) ) ( S ( VP ( VBD burdened ) ( NP ( NNP Avery ) ) ( PP-CLR ( IN with ) ( NP ( NN debt ) ) ) ) ) ) ) ) )

Avery paid 750 million including various legal and financing fees to acquire Uniroyal Chemical Middlebury Conn. in 1986 a move that burdened Avery with debt


( S ( PP-LOC ( IN In ) ( NP ( JJ over-the-counter ) ( NN trading ) ) ) ( NP-SBJ-1 ( NNP Avery ) ( NNS shares ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( NP-TMP ( NN yesterday ) ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( NN bid ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( CD 93.75 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) )

In over-the-counter trading Avery shares were quoted yesterday at a bid price of 93.75 cents a share


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NNP Avery ) ) ) ) ( PP-TMP ( IN for ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ( CD 1988 ) ) ) ) ) ( NP-SBJ ( NNP Uniroyal ) ( NNP Chemical ) ) ( VP ( VBD had ) ( NP ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( QP ( CD 734.2 ) ( CD million ) ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( JJ net ) ( NN loss ) ) ( PP ( IN of ) ( NP ( QP ( CD 47.1 ) ( CD million ) ) ) ) ) ) ) )

According to Avery for the year ended Sept. 30 1988 Uniroyal Chemical had sales of 734.2 million and a net loss of 47.1 million


( S ( NP-SBJ ( DT An ) ( NNP Avery ) ( NN spokesman ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT the ) ( NN loss ) ) ( VP ( VBD was ) ( VP ( VBN magnified ) ( PP ( IN by ) ( NP-LGS ( NN accounting ) ( NNS adjustments ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN loss ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJR smaller ) ) ( PP ( IN on ) ( NP ( DT a ) ( NN cash ) ( NN basis ) ) ) ) ) ) ) ) )

An Avery spokesman said that the loss was magnified by accounting adjustments and that the company 's loss was smaller on a cash basis


( S ( NP-SBJ ( NNP Uniroyal ) ) ( VP ( VBZ has ) ( NP ( CD 2,600 ) ( NNS employees ) ( CC and ) ( NNS facilities ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP U.S. ) ) ( NP ( NNP Canada ) ) ( NP ( NNP Brazil ) ) ( NP ( NNP Italy ) ) ( CC and ) ( NP ( NNP Taiwan ) ) ) ) ) )

Uniroyal has 2,600 employees and facilities in the U.S. Canada Brazil Italy and Taiwan


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ related ) ( NN development ) ) ) ( NP-SBJ ( NNP Avery ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD completed ) ( NP ( NP ( DT a ) ( NN recapitalization ) ) ( SBAR ( WHPP-1 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( NX ( NX ( VBG controlling ) ( NNS shareholders ) ) ( CC and ) ( NX ( JJ top ) ( NNS officers ) ) ) ) ( NP ( NP ( NNP Nelson ) ( NNP Peltz ) ) ( CC and ) ( NP ( NNP Peter ) ( NNP W. ) ( NNP May ) ) ) ) ( VP ( VBD surrendered ) ( NP ( NP ( NNS warrants ) ) ( CC and ) ( NP ( JJ preferred ) ( NN stock ) ) ) ( PP-CLR ( IN in ) ( NP ( NP ( NN exchange ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJR larger ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Avery ) ( POS 's ) ) ( JJ common ) ( NNS shares ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a related development Avery said it completed a recapitalization in which its controlling shareholders and top officers Nelson Peltz and Peter W. May surrendered warrants and preferred stock in exchange for a larger stake in Avery 's common shares


( S ( PP ( IN On ) ( NP ( DT a ) ( RB fully ) ( JJ diluted ) ( NN basis ) ) ) ( NP-SBJ ( DT the ) ( CD two ) ) ( VP ( VBD raised ) ( NP ( PRP$ their ) ( NN stake ) ) ( PP-DIR ( TO to ) ( NP ( CD 68 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 51 ) ( NN % ) ) ) ) )

On a fully diluted basis the two raised their stake to 68 % from 51 %


( S ( PP-TMP ( IN In ) ( NP ( NNP December ) ( CD 1988 ) ) ) ( NP-SBJ ( NNPS Messrs. ) ( NNP Peltz ) ( CC and ) ( NNP May ) ) ( VP ( VBD sold ) ( NP ( NP ( PRP$ their ) ( NN stock ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Triangle ) ( NNP Industries ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NN packaging ) ( NN company ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD controlled ) ) ) ) ) ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( NNP Pechiney ) ( NNP Corp. ) ) ( PP ( IN of ) ( NP ( NNP France ) ) ) ) ) ) )

In December 1988 Messrs. Peltz and May sold their stock in Triangle Industries Inc. a packaging company they controlled to Pechiney Corp. of France


( S ( NP-SBJ ( DT The ) ( NNS executives ) ) ( VP ( VBD had ) ( VP ( VBN profited ) ( ADVP ( RB handsomely ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG building ) ( NP ( NP ( NNP American ) ( NNP National ) ( MD Can ) ( NNP Co. ) ) ( NP ( NP ( NNP Triangle ) ( POS 's ) ) ( JJ chief ) ( NN asset ) ) ) ) ) ) ) ) )

The executives had profited handsomely by building American National Can Co. Triangle 's chief asset


( S ( PP-TMP ( IN In ) ( NP ( NNP January ) ( CD 1989 ) ) ) ( NP-SBJ ( DT the ) ( CD two ) ( NNS men ) ) ( VP ( VBD acquired ) ( NP ( NP ( NP ( DT the ) ( JJ non-packaging ) ( NNS assets ) ) ( PP ( IN of ) ( NP ( NNP Triangle ) ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT a ) ( JJ controlling ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Avery ) ) ( CC and ) ( PRN ( PP ( IN by ) ( NP ( NN extension ) ) ) ) ( NP ( NNP Uniroyal ) ( NNP Chemical ) ) ) ) ) ) ) ) )

In January 1989 the two men acquired the non-packaging assets of Triangle including a controlling stake in Avery and by extension Uniroyal Chemical


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NNP August ) ( NN proxy ) ( NN material ) ) ) ( NP-SBJ ( NNP Avery ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD sold ) ( NP ( NNP Uniroyal ) ) ) ) ) ( S ( NP-SBJ-1 ( PRP$ its ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( NN service ) ( NP ( NN debt ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN hurt ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( NP ( NNP Avery ) ( POS 's ) ) ( NN shareholder ) ( NN value ) ) ( VP ( MD would ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB erode ) ) ) ) ) ) ) ) ) ) )

In the August proxy material Avery said that unless it sold Uniroyal its ability to service debt would be hurt and Avery 's shareholder value would continue to erode


( S ( S-TPC-1 ( SBAR-TMP ( IN Until ) ( S ( NP-SBJ ( NNP Avery ) ) ( VP ( VBZ makes ) ( NP ( DT an ) ( NN acquisition ) ) ) ) ) ( NP-SBJ ( NNPS Messrs. ) ( NNP Peltz ) ( CC and ) ( NNP May ) ) ( VP ( MD will ) ( VP ( VB waive ) ( NP ( PRP$ their ) ( JJ direct ) ( NNS salaries ) ( CC and ) ( NNS bonuses ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

Until Avery makes an acquisition Messrs. Peltz and May will waive their direct salaries and bonuses the company said


( S ( PP-TMP ( IN For ) ( NP ( QP ( ADVP ( IN at ) ( JJS least ) ) ( DT the ) ( JJ next ) ( CD six ) ) ( NNS months ) ) ) ( ADVP ( RB however ) ) ( NP-SBJ-1 ( NNP Avery ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NP ( CD 200,000 ) ) ( NP-ADV ( DT a ) ( NN month ) ) ) ( PP-CLR ( IN for ) ( NP ( NN management ) ( NNS services ) ) ) ( PP-DTV ( TO to ) ( NP ( NP ( DT a ) ( NN company ) ) ( VP ( VBN controlled ) ( PP ( IN by ) ( NP-LGS ( NN Messrs. ) ( NNP Peltz ) ( CC and ) ( NNP May ) ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( DT the ) ( JJ proxy ) ( NN material ) ) ) ) ) ) ) ) ) )

For at least the next six months however Avery will continue to pay 200,000 a month for management services to a company controlled by Messrs. Peltz and May according to the proxy material


( S ( NP-SBJ ( NP ( DT The ) ( JJ head ) ( NN trader ) ) ( PP ( IN of ) ( NP ( NP ( NNP Chemical ) ( NNP Banking ) ( NNP Corp. ) ( POS 's ) ) ( NN interest-rate ) ( NNS options ) ( NN group ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN left ) ( NP ( DT the ) ( NN company ) ) ( PP ( VBG following ) ( NP ( NP ( NN valuation ) ( NNS errors ) ) ( SBAR ( WHNP-9 ( WDT that ) ) ( S ( VP ( VBD resulted ) ( PP-CLR ( IN in ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 33 ) ( CD million ) ) ) ( NN charge ) ) ( PP ( IN against ) ( NP ( PRP$ its ) ( JJ third-quarter ) ( NNS results ) ) ) ) ) ) ) ) ) ) ) ) )

The head trader of Chemical Banking Corp. 's interest-rate options group has left the company following valuation errors that resulted in a 33 million charge against its third-quarter results


( S ( S ( NP-SBJ ( NNP Chemical ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Steven ) ( NNP Edelson ) ) ( VP ( VBD resigned ) ( ADVP-TMP ( RB recently ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NP ( CD one ) ( NN individual ) ) ( ADVP-LOC ( RB close ) ( PP ( TO to ) ( NP ( DT the ) ( NN situation ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN resignation ) ) ( VP ( VBD was ) ( VP ( VBN forced ) ) ) ) ) ) ) )

Chemical said Steven Edelson resigned recently but one individual close to the situation said the resignation was forced


( S ( NP-SBJ-1 ( NNP Mr. ) ( NNP Edelson ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN reached ) ( PP-PRP ( IN for ) ( NP ( NN comment ) ) ) ) ) ) )

Mr. Edelson could n't be reached for comment


( S ( NP-SBJ ( NP ( DT A ) ( JJ separate ) ( NN inquiry ) ) ( PP ( IN by ) ( NP ( NNP Chemical ) ) ) ) ( VP ( VBD cleared ) ( NP ( NNP Mr. ) ( NNP Edelson ) ) ( PP-CLR ( IN of ) ( NP ( NNS allegations ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( ADVP-MNR ( RB lavishly ) ) ( VBN entertained ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( NNP New ) ( NNP York ) ( NN money ) ( NN broker ) ) ) ) ) ) ) ) ) ) ) )

A separate inquiry by Chemical cleared Mr. Edelson of allegations that he had been lavishly entertained by a New York money broker


( S ( NP-SBJ ( DT That ) ( NN inquiry ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBD resolved ) ( NP ( NP ( JJ similar ) ( NNS allegations ) ) ( VP ( VBG involving ) ( NP ( DT another ) ( NNP Chemical ) ( NNS options ) ( NN trader ) ) ) ) ) ) )

That inquiry has n't resolved similar allegations involving another Chemical options trader


( PP-HLN ( IN In ) ( NP ( NP ( JJ other ) ( NNS personnel ) ( NNS changes ) ) ( VP ( VBG stemming ) ( PP-LOC-CLR ( IN from ) ( NP ( NP ( NNS problems ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NNS options ) ( NN unit ) ) ) ) ) ) ) )

In other personnel changes stemming from problems in its options unit


( S ( NP-SBJ ( NNP Chemical ) ) ( VP ( VBD named ) ( S ( NP-SBJ ( NP ( NNP James ) ( NNP Kennedy ) ) ( NP ( NP ( DT a ) ( NN trader ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS swaps ) ( NNS contracts ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN bank ) ) ) ) ) ) ) ( VP ( VP ( TO to ) ( VP ( VB assume ) ( NP ( NP ( NNP Mr. ) ( NNP Edelson ) ( POS 's ) ) ( NNS duties ) ) ) ) ( CC and ) ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( NN trading ) ( NN manager ) ) ( PP ( IN for ) ( NP ( NP ( JJ derivative ) ( NNS products ) ) ( PP ( VBG including ) ( NP ( NP ( NNS swaps ) ) ( CC and ) ( NP ( NN interest-rate ) ( NNS options ) ) ) ) ) ) ) ) ) ) ) ) )

Chemical named James Kennedy a trader in swaps contracts for the bank to assume Mr. Edelson 's duties and to be trading manager for derivative products including swaps and interest-rate options


( S ( NP-SBJ-2 ( NP ( NNP Lee ) ( NNP Wakeman ) ) ( NP ( NP ( NN vice ) ( NN president ) ) ( PP ( IN in ) ( NP ( NP ( NN charge ) ) ( PP ( IN of ) ( NP ( NNS options ) ( NN research ) ) ) ) ) ( SBAR ( WHNP-10 ( WP who ) ) ( S ( VP ( VP ( VBD discovered ) ( NP ( DT the ) ( NN valuation ) ( NNS errors ) ) ) ( CC and ) ( VP ( VBD was ) ( VP ( VBN asked ) ( PP ( IN by ) ( NP-LGS ( JJ senior ) ( NN management ) ) ) ( S ( VP ( TO to ) ( VP ( VB straighten ) ( PRT ( RP out ) ) ( NP ( DT the ) ( NN mess ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD resigned ) ( S-PRP ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( DT a ) ( NN position ) ) ( PP-LOC ( IN in ) ( NP ( NN asset ) ( CC and ) ( NN liability ) ( NN management ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Continental ) ( NNP Bank ) ) ( PP-LOC ( IN in ) ( NP ( NNP Chicago ) ) ) ) ) ) ) ) ) ) )

Lee Wakeman vice president in charge of options research who discovered the valuation errors and was asked by senior management to straighten out the mess resigned to take a position in asset and liability management at Continental Bank in Chicago


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Wakeman ) ) ( SBAR ( WHNP-2 ( WP whom ) ) ( S ( NP-SBJ-1 ( NNP Chemical ) ) ( VP ( VBD tried ) ( S ( VP ( TO to ) ( VP ( VB keep ) ) ) ) ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB return ) ( NP ( NP ( NNS calls ) ) ( PP ( IN for ) ( NP ( NN comment ) ) ) ) ) ) )

Mr. Wakeman whom Chemical tried to keep did n't return calls for comment


( S ( ADVP ( RB Separately ) ) ( NP-SBJ ( NNP Chemical ) ) ( VP ( VBD confirmed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD took ) ( NP ( NP ( DT an ) ( JJ undisclosed ) ( NN charge ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ( PP-CLR-1 ( IN for ) ( NP ( NP ( NNS losses ) ) ( PP ( IN on ) ( NP ( NP ( JJ forward-rate ) ( NNS agreements ) ) ( VP ( VBG involving ) ( NP ( NP ( JJ foreign ) ( NN currency ) ) ( VP ( VBN written ) ( PP ( IN by ) ( NP-LGS ( NP ( PRP$ its ) ( NN branch ) ) ( PP ( IN in ) ( NP-LOC ( NP ( NNP Frankfurt ) ) ( NP ( NNP West ) ( NNP Germany ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Separately Chemical confirmed that it took an undisclosed charge in the second quarter for losses on forward-rate agreements involving foreign currency written by its branch in Frankfurt West Germany


( S ( NP-SBJ ( DT A ) ( NNP Chemical ) ( NN spokeswoman ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ second-quarter ) ( NN charge ) ) ( VP ( VBD was ) ( RB not ) ( ADJP-PRD ( JJ material ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT no ) ( NNS personnel ) ( NNS changes ) ) ( VP ( VBD were ) ( VP ( VBN made ) ( PP-PRP ( IN as ) ( NP ( DT a ) ( NN result ) ) ) ) ) ) ) ) ) )

A Chemical spokeswoman said the second-quarter charge was not material and that no personnel changes were made as a result


( S ( NP-SBJ ( DT The ) ( NN spokeswoman ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP Frankfurt ) ( NN situation ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB totally ) ( JJ different ) ( PP ( IN from ) ( NP ( NP ( NNS problems ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN interest-rate ) ( NNS options ) ( NN unit ) ) ) ) ) ) ) ) ) ) )

The spokeswoman said the Frankfurt situation was totally different from problems in the interest-rate options unit


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NP ( NNS individuals ) ) ( ADJP ( JJ familiar ) ( PP ( IN with ) ( NP ( DT the ) ( NN situation ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP Frankfurt ) ( NN loss ) ) ( VP ( VBD stemmed ) ( PP-LOC-CLR ( IN from ) ( NP ( NP ( DT a ) ( NN computer ) ( NN program ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG calculating ) ( NP ( NP ( NNS prices ) ) ( PP-LOC ( IN on ) ( NP ( NP ( JJ forward-rate ) ( NNS agreements ) ) ( SBAR ( WHNP-11 ( WDT that ) ) ( S ( VP ( VBD failed ) ( S ( VP ( TO to ) ( VP ( VB envision ) ( NP ( NP ( DT an ) ( NN interest-rate ) ( NN environment ) ) ( SBAR ( WHADVP-3 ( WRB where ) ) ( S ( NP-SBJ ( JJ short-term ) ( NNS rates ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( JJ equal ) ( PP ( TO to ) ) ) ( CC or ) ( ADJP ( JJR higher ) ( PP ( IN than ) ) ) ( NP-1 ( JJ long-term ) ( NNS rates ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

According to individuals familiar with the situation the Frankfurt loss stemmed from a computer program for calculating prices on forward-rate agreements that failed to envision an interest-rate environment where short-term rates were equal to or higher than long-term rates


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS incidents ) ) ( VP ( VBG involving ) ( NP ( NP ( NN interest-rate ) ( NNS options ) ) ( CC and ) ( NP ( JJ forward-rate ) ( NNS agreements ) ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ unrelated ) ) ) ) ) ( NP-SBJ ( DT some ) ( NNS observers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP echo ) ( NP ( NP ( DT a ) ( CD 1987 ) ( NN incident ) ) ( SBAR ( WHPP-1 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNP Bankers ) ( NNP Trust ) ( NNP New ) ( NNP York ) ( NNP Corp. ) ) ( VP ( VBD restated ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ foreign ) ( NN exchange ) ( NNS options ) ( NN contracts ) ) ) ) ( ADVP-EXT ( RB downward ) ( PP ( IN by ) ( NP ( QP ( RB about ) ( CD 80 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) )

While the incidents involving interest-rate options and forward-rate agreements are unrelated some observers say they echo a 1987 incident in which Bankers Trust New York Corp. restated the value of its foreign exchange options contracts downward by about 80 million


( S ( NP-SBJ ( DT These ) ( JJ complex ) ( NNS products ) ) ( VP ( VBP require ) ( NP ( JJ close ) ( NN monitoring ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( DT each ) ) ( VP ( MD must ) ( VP ( VB be ) ( VP ( VBN valued ) ( ADVP-MNR ( RB separately ) ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NN light ) ) ( PP ( IN of ) ( NP ( JJ current ) ( NN market ) ( NNS conditions ) ) ) ) ) ) ) ) )

These complex products require close monitoring because each must be valued separately in light of current market conditions


( S ( PP-LOC ( IN In ) ( NP ( DT an ) ( NN interest-rate ) ( NNS options ) ( NN contract ) ) ) ( NP-SBJ ( DT a ) ( NN client ) ) ( VP ( VBZ pays ) ( NP ( DT a ) ( NN fee ) ) ( PP-DTV ( TO to ) ( NP ( DT a ) ( NN bank ) ) ) ( PP-PRP ( IN for ) ( NP ( NP ( JJ custom-tailored ) ( NN protection ) ) ( PP ( IN against ) ( NP ( JJ adverse ) ( NN interest-rate ) ( NNS swings ) ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ specified ) ( NN period ) ) ) ) ) ) )

In an interest-rate options contract a client pays a fee to a bank for custom-tailored protection against adverse interest-rate swings for a specified period


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ forward-rate ) ( NN agreement ) ) ) ( NP-SBJ ( DT a ) ( NN client ) ) ( VP ( VBZ agrees ) ( PP-CLR ( TO to ) ( NP ( NP ( DT an ) ( NN exchange ) ( NN rate ) ) ( PP-LOC ( IN on ) ( NP ( DT a ) ( JJ future ) ( NN currency ) ( NN transaction ) ) ) ) ) ) )

In a forward-rate agreement a client agrees to an exchange rate on a future currency transaction


( S ( NP-SBJ ( DT Some ) ( NNS competitors ) ) ( VP ( VBP maintain ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN interestrate ) ( NN option ) ( NN loss ) ) ( PP ( IN in ) ( NP ( JJ particular ) ) ) ( VP ( MD may ) ( VP ( VB have ) ( VP ( VBN resulted ) ( PP-CLR ( ADVP ( RBR more ) ) ( IN from ) ( S-NOM ( NP-SBJ ( NNP Chemical ) ( POS 's ) ) ( VP ( VBG taking ) ( NP ( ADJP ( ADJP ( JJ large ) ) ( CC and ) ( ADJP ( RB often ) ( JJ contrarian ) ) ) ( NNS positions ) ) ) ) ( PP ( IN than ) ( NP ( DT a ) ( NN valuation ) ( NN problem ) ) ) ) ) ) ) ) ) ) )

Some competitors maintain the interestrate option loss in particular may have resulted more from Chemical 's taking large and often contrarian positions than a valuation problem


( S ( S ( VP ( VBN Started ) ( NP-TMP ( CD three ) ( NNS years ) ( RB ago ) ) ) ) ( NP-SBJ-1 ( NP ( NNP Chemical ) ( POS 's ) ) ( NN interest-rate ) ( NNS options ) ( NN group ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ leading ) ( NN force ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN field ) ) ) ) ) )

Started three years ago Chemical 's interest-rate options group was a leading force in the field


( S ( PP-TMP ( PP ( IN From ) ( NP ( CD 1987 ) ) ) ( PP ( TO to ) ( NP ( CD 1988 ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Chemical ) ( POS 's ) ) ( NN option ) ( NNS contracts ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ( VP ( VBD mushroomed ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 37 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 17 ) ( CD billion ) ) ) ) ) )

From 1987 to 1988 the value of Chemical 's option contracts outstanding mushroomed to 37 billion from 17 billion


( S ( ADVP ( RBR More ) ( RB importantly ) ) ( NP-SBJ ( NP ( DT the ) ( NN volume ) ) ( PP ( IN of ) ( NP ( NP ( NNS options ) ) ( VP ( VBN written ) ) ) ) ) ( VP ( VBD exceeded ) ( NP ( NP ( DT those ) ) ( VP ( VBN purchased ) ) ) ( PP-EXT ( IN by ) ( ADVP ( RB almost ) ( JJ 2-to-1 ) ) ) ) )

More importantly the volume of options written exceeded those purchased by almost 2-to-1


( S-1 ( PP ( IN With ) ( NP ( NP ( PDT such ) ( DT a ) ( JJ lopsided ) ( NN book ) ) ( PP ( IN of ) ( NP ( NNS options ) ) ) ) ) ( PRN ( S ( NP-SBJ ( NNS traders ) ) ( VP ( VBP say ) ) ) ) ( NP-SBJ ( NNP Chemical ) ) ( VP ( VBD was ) ( ADJP-PRD ( RBR more ) ( JJ vulnerable ) ( PP ( TO to ) ( NP ( JJ erroneous ) ( NN valuation ) ( NNS assumptions ) ) ) ) ) )

With such a lopsided book of options traders say Chemical was more vulnerable to erroneous valuation assumptions


( S ( NP-SBJ ( DT The ) ( NNP Chemical ) ( NN spokeswoman ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN bank ) ) ( VP ( VBZ has ) ( VP ( VBN examined ) ( NP ( PRP$ its ) ( NX ( NX ( NNS methodologies ) ) ( CC and ) ( NX ( JJ internal ) ( NNS controls ) ) ) ) ) ) ) ) ) )

The Chemical spokeswoman said the bank has examined its methodologies and internal controls


( S ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP consider ) ( S ( NP-SBJ ( PRP$ our ) ( JJ internal ) ( NNS controls ) ) ( VP ( TO to ) ( VP ( VB have ) ( VP ( VBN worked ) ( ADVP-MNR ( RB well ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP she ) ) ( VP ( VBD said ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( NP-SBJ-3 ( DT some ) ( NNS procedures ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN strengthened ) ) ) ) ) ) ) ) ) )

We consider our internal controls to have worked well she said adding that some procedures have been strengthened


( S-1 ( NP-SBJ-2 ( PRP$ Its ) ( NN valuation ) ( NNS methodologies ) ) ( PRN ( S ( NP-SBJ ( PRP she ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBP are ) ( VP ( VBN recognized ) ( PP-CLR ( IN as ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJS best ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Street ) ) ) ) ) ) ) ) ) )

Its valuation methodologies she said are recognized as some of the best on the Street


( S ( NP-SBJ-1 ( RB Not ) ( DT a ) ( NN lot ) ) ( VP ( VBD was ) ( VP ( VBN needed ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN done ) ) ) ) ) ) ) )

Not a lot was needed to be done


( S ( NP-SBJ ( NP ( DT The ) ( NN portfolio ) ( NN unit ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ French ) ( NN bank ) ( NN group ) ( NNP Credit ) ( NNP Lyonnais ) ) ) ) ( VP ( VBD told ) ( NP ( NN stock ) ( NN market ) ( NNS regulators ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD bought ) ( NP ( NP ( CD 43,000 ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( NNP Cie. ) ( FW de ) ( NNP Navigation ) ( NNP Mixte ) ) ) ) ( S-PRP ( ADVP ( RB apparently ) ) ( VP ( TO to ) ( VP ( VB help ) ( S ( VP ( VB fend ) ( PRT ( RP off ) ) ( NP ( NP ( DT an ) ( JJ unwelcome ) ( NN takeover ) ( NN bid ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) )

The portfolio unit of the French bank group Credit Lyonnais told stock market regulators that it bought 43,000 shares of Cie. de Navigation Mixte apparently to help fend off an unwelcome takeover bid for the company


( S ( NP-TMP ( RBR Earlier ) ( NN yesterday ) ) ( NP-SBJ-1 ( DT the ) ( NNP Societe ) ( FW de ) ( NNP Bourses ) ( NNP Francaises ) ) ( VP ( VBD was ) ( VP ( VBN told ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP Framatome ) ( NNP S.A. ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBD bought ) ( NP ( NNP Navigation ) ( NNP Mixte ) ( NNS shares ) ) ( S-ADV ( NP-SBJ ( DT this ) ( NN purchase ) ) ( VP ( VBG covering ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 160,000 ) ) ( NNS shares ) ) ) ) ) ) ) ) ) )

Earlier yesterday the Societe de Bourses Francaises was told that a unit of Framatome S.A. also bought Navigation Mixte shares this purchase covering more than 160,000 shares


( S ( NP-SBJ ( DT Both ) ( NNS companies ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NNS allies ) ) ( PP ( IN of ) ( NP ( NNP Navigation ) ( NNP Mixte ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ its ) ( NN fight ) ) ( PP ( IN against ) ( NP ( NP ( DT a ) ( JJ hostile ) ( NN takeover ) ( NN bid ) ) ( VP ( VBN launched ) ( NP-TMP ( JJ last ) ( NN week ) ) ( PP ( IN by ) ( NP-LGS ( NNP Cie ) ) ) ) ) ) ) ) ) ) )

Both companies are allies of Navigation Mixte in its fight against a hostile takeover bid launched last week by Cie


( NP ( NP ( NNP Financiere ) ( FW de ) ( NNP Paribas ) ) ( PP ( IN at ) ( NP ( NP ( CD 1,850 ) ( JJ French ) ( NNS francs ) ) ( PRN ( NP ( CD 297 ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) )

Financiere de Paribas at 1,850 French francs 297 a share


( S ( NP-SBJ ( NP ( NNP Navigation ) ( NNP Mixte ) ( POS 's ) ) ( NN chairman ) ) ( VP ( VBD had ) ( VP ( VBN suggested ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( JJ friendly ) ( NNS institutions ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( PRP$ its ) ( NN stock ) ) ( ADVP-TMP ( RB as ) ( RB soon ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NN trading ) ) ( VP ( VBD opened ) ( NP-TMP ( NNP Monday ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Navigation Mixte 's chairman had suggested that friendly institutions were likely to buy its stock as soon as trading opened Monday


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNP Credit ) ( NNP Lyonnais ) ( NN purchase ) ) ( PRN ( PP ( IN for ) ( NP ( NP ( CD 33,000 ) ( JJ regular ) ( JJ common ) ( NNS shares ) ) ( CC and ) ( NP ( CD 10,000 ) ( RB newly ) ( VBN created ) ( NNS shares ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( QP ( RB about ) ( RB slightly ) ( JJR more ) ( IN than ) ( CD 80 ) ( CD million ) ) ( JJ French ) ( NNS francs ) ) ) ) ) )

The Credit Lyonnais purchase for 33,000 regular common shares and 10,000 newly created shares is valued at about slightly more than 80 million French francs


( S ( NP-SBJ-1 ( NN Bond ) ( NNS prices ) ) ( VP ( VBD staggered ) ( PP-LOC ( IN in ) ( NP ( JJ seesaw ) ( NN trading ) ) ) ( S-ADV ( VP ( VP ( VBG rising ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS reports ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN weakness ) ) ) ) ) ) ( CC and ) ( VP ( VBG falling ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS reports ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN strength ) ) ) ) ) ) ) ) ) )

Bond prices staggered in seesaw trading rising on reports of economic weakness and falling on reports of economic strength


( S ( NP-SBJ-1 ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBD got ) ( ADVP-CLR ( RB off ) ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( JJ strong ) ( NN start ) ) ) ( S-ADV ( VP ( VBG advancing ) ( ADVP ( RB modestly ) ) ( PP-TMP ( IN during ) ( NP ( NP ( JJ overnight ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( JJ foreign ) ( NNS markets ) ) ) ) ) ) ) ) )

Treasury bonds got off to a strong start advancing modestly during overnight trading on foreign markets


( SINV ( NP-SBJ ( PRP We ) ) ( VP ( VBD saw ) ( NP ( NP ( NP ( JJ good ) ( NN buying ) ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ( CC and ) ( NP ( NP ( JJ excellent ) ( NN buying ) ) ( PP-LOC ( IN in ) ( NP ( NNP London ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Jay ) ( NNP Goldinger ) ) ( NP ( NP ( NN market ) ( NN strategist ) ( CC and ) ( NN trader ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Capital ) ( NNP Insight ) ( NNP Inc. ) ) ( NP-LOC ( NP ( NNP Beverly ) ( NNP Hills ) ) ( NP ( NNP Calif ) ) ) ) ) ) ) )

We saw good buying in Japan and excellent buying in London said Jay Goldinger market strategist and trader at Capital Insight Inc. Beverly Hills Calif


( S ( S-TPC-2 ( NP-SBJ-1 ( NP ( DT The ) ( NN market ) ( POS 's ) ) ( NN tempo ) ) ( VP ( VBD was ) ( VP ( VBN helped ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN dollar ) ( POS 's ) ) ( NN resiliency ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

The market 's tempo was helped by the dollar 's resiliency he said


( S ( ADVP-TMP ( RB Late ) ) ( PP-LOC ( IN in ) ( NP ( NNP London ) ) ) ( NP-SBJ-1 ( DT the ) ( NN dollar ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 1.8410 ) ( JJ West ) ( JJ German ) ( NNS marks ) ) ( CC and ) ( NP ( CD 142.70 ) ( JJ Japanese ) ( NNS yen ) ) ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP-TMP ( JJ late ) ( NNP Monday ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) ) ) )

Late in London the dollar was quoted at 1.8410 West German marks and 142.70 Japanese yen up from late Monday in New York


( S ( NP-SBJ ( JJ British ) ( NN sterling ) ) ( VP ( VBD eased ) ( PP-DIR ( TO to ) ( NP ( CD 1.5775 ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 1.5825 ) ) ) ) )

British sterling eased to 1.5775 from 1.5825


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( NNP U.S. ) ( NN trading ) ) ( VP ( VBD began ) ) ) ) ( NP-SBJ ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBD received ) ( NP ( DT an ) ( JJ additional ) ( NN boost ) ) ( PP-CLR ( IN from ) ( NP ( NN news ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( JJ new ) ( JJ single-family ) ( NNS homes ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 14 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) ) )

When U.S. trading began Treasury bonds received an additional boost from news that sales of new single-family homes fell 14 % in September


( S ( NP-SBJ ( DT The ) ( NN contraction ) ) ( VP ( VP ( VBD was ) ( ADJP-PRD ( ADJP ( RB twice ) ( RB as ) ( JJ large ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NNS economists ) ) ( VP ( VBD projected ) ) ) ) ) ) ( CC and ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJS sharpest ) ( NN decline ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT a ) ( ADJP ( CD 19 ) ( NN % ) ) ( NN drop ) ) ( PP-TMP ( IN in ) ( NP ( NNP January ) ( CD 1982 ) ) ) ) ) ) ) ) )

The contraction was twice as large as economists projected and was the sharpest decline since a 19 % drop in January 1982


( S ( NP-SBJ ( NNS Economists ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN report ) ) ( VP ( VBD raised ) ( NP ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ economic ) ( NN slowdown ) ) ( VP ( MD could ) ( VP ( VB turn ) ( PP-CLR ( IN into ) ( NP ( DT a ) ( NN recession ) ) ) ( SBAR-ADV ( WHNP-151 ( WDT which ) ) ( S ( VP ( MD would ) ( VP ( VB pave ) ( NP ( NP ( DT the ) ( NN way ) ) ( SBAR ( IN for ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( TO to ) ( VP ( VB lower ) ( NP ( NN interest ) ( NNS rates ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Economists said the report raised speculation that the economic slowdown could turn into a recession which would pave the way for the Federal Reserve to lower interest rates


( S ( CC But ) ( PP-TMP ( ADVP ( RBR later ) ) ( IN in ) ( NP ( DT the ) ( NN day ) ) ) ( NP-SBJ ( NP ( DT a ) ( NN report ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( NNP Purchasing ) ( NNP Management ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Chicago ) ) ) ) ) ) ( VP ( VBD cast ) ( NP ( NN doubt ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN recession ) ( NN scenario ) ) ) ) )

But later in the day a report by the Purchasing Management Association of Chicago cast doubt on the recession scenario


( S ( NP-SBJ ( DT The ) ( NN association ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( PRP$ its ) ( NNP October ) ( NN index ) ) ( PP ( IN of ) ( NP ( JJ economic ) ( NN activity ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( CD 51.6 ) ( NN % ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG having ) ( VP ( VBN been ) ( PP-LOC-PRD ( IN below ) ( NP ( CD 50 ) ( NN % ) ) ) ( PP-TMP ( IN for ) ( NP ( CD three ) ( JJ consecutive ) ( NNS months ) ) ) ) ) ) ) ) ) ) ) )

The association said its October index of economic activity rose to 51.6 % after having been below 50 % for three consecutive months


( S ( NP-SBJ ( NP ( DT A ) ( NN reading ) ) ( PP-LOC ( IN below ) ( NP ( CD 50 ) ( NN % ) ) ) ) ( VP ( VBZ indicates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN manufacturing ) ( NN industry ) ) ( VP ( VBZ is ) ( VP ( VBG slowing ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT a ) ( NN reading ) ) ( PP-LOC ( IN above ) ( NP ( CD 50 ) ( NN % ) ) ) ) ( VP ( VBZ suggests ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN industry ) ) ( VP ( VBZ is ) ( VP ( VBG expanding ) ) ) ) ) ) ) ) ) )

A reading below 50 % indicates that the manufacturing industry is slowing while a reading above 50 % suggests that the industry is expanding


( S ( NP-SBJ ( NN Bond ) ( NNS prices ) ) ( VP ( VBD fell ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Chicago ) ( NN report ) ) ( VP ( VBD was ) ( VP ( VBN released ) ) ) ) ) ) )

Bond prices fell after the Chicago report was released


( S ( PP-TMP ( IN By ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN day ) ) ) ) ) ( NP-SBJ ( NN bond ) ( NNS prices ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ mixed ) ) ) )

By the end of the day bond prices were mixed


( S ( NP-SBJ ( DT The ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD was ) ( ADJP-PRD ( ADJP ( NP ( QP ( RB nearly ) ( CD 1\/4 ) ) ( NN point ) ) ( JJR higher ) ) ( CC or ) ( ADVP ( RB up ) ( NP ( QP ( RB about ) ( CD 2.50 ) ) ) ( PP ( IN for ) ( NP ( DT each ) ( ADJP ( CD 1,000 ) ) ( NN face ) ( NN amount ) ) ) ) ) ) )

The benchmark 30-year bond was nearly 1\/4 point higher or up about 2.50 for each 1,000 face amount


( S ( NP-SBJ ( JJ New ) ( JJ two-year ) ( NNS notes ) ) ( VP ( VBD ended ) ( ADJP-CLR ( JJ unchanged ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( ADJP ( JJ three-year ) ( CC and ) ( JJ four-year ) ) ( NNS notes ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB slightly ) ( JJR lower ) ) ) ) ) ) )

New two-year notes ended unchanged while three-year and four-year notes were slightly lower


( S ( NP-SBJ ( JJ Municipal ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADJP-CLR ( JJ unchanged ) ) ( PP-CLR ( TO to ) ( ADJP ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 1\/2 ) ) ( NN point ) ) ( JJR higher ) ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( JJ mortgage-backed ) ( NNS securities ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ( NP ( QP ( RB about ) ( CD 1\/8 ) ) ( NN point ) ) ) ) ) ) ) )

Municipal bonds ended unchanged to as much as 1\/2 point higher while mortgage-backed securities were up about 1\/8 point


( S ( NP-SBJ ( JJ Corporate ) ( NNS bonds ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unchanged ) ) ) )

Corporate bonds were unchanged


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ corporate ) ( NN market ) ) ) ( NP-SBJ ( NP ( DT an ) ( JJ expected ) ( NN debt ) ( NN offering ) ) ( NP-TMP ( NN today ) ) ( PP ( IN by ) ( NP ( NNP International ) ( NNP Business ) ( NNP Machines ) ( NNP Corp. ) ) ) ) ( VP ( VBD generated ) ( NP ( JJ considerable ) ( NN attention ) ) ) )

In the corporate market an expected debt offering today by International Business Machines Corp. generated considerable attention


( S ( NP-SBJ-1 ( DT The ) ( JJ giant ) ( NN computer ) ( NN maker ) ) ( VP ( VBZ is ) ( VP ( VBN slated ) ( S ( VP ( TO to ) ( VP ( VB offer ) ( NP ( NP ( QP ( CD 500 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ 30-year ) ( JJ non-callable ) ( NNS debentures ) ) ) ) ( PP-MNR ( IN through ) ( NP ( NP ( NNS underwriters ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Salomon ) ( NNP Brothers ) ( NNP Inc ) ) ) ) ) ) ) ) ) ) ) )

The giant computer maker is slated to offer 500 million of 30-year non-callable debentures through underwriters led by Salomon Brothers Inc


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( DT the ) ( NNS bonds ) ) ( VP ( TO to ) ( VP ( VB yield ) ( PP ( NP-ADV ( QP ( RB about ) ( CD 0.60 ) ( TO to ) ( CD 0.65 ) ) ( NN percentage ) ( NN point ) ) ( IN above ) ( NP ( NP ( NP ( DT the ) ( NNP Treasury ) ( POS 's ) ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( SBAR ( WHNP-152 ( WDT which ) ) ( S ( VP ( VBD ended ) ( NP-TMP ( NNP Tuesday ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( QP ( RB about ) ( CD 7.90 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Traders expect the bonds to yield about 0.60 to 0.65 percentage point above the Treasury 's benchmark 30-year bond which ended Tuesday with a yield of about 7.90 %


( S ( NP-SBJ ( NP ( DT The ) ( JJ last ) ( NN time ) ) ( SBAR-TMP ( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBD tapped ) ( NP ( DT the ) ( JJ corporate ) ( NN debt ) ( NN market ) ) ) ) ) ) ( VP ( VBD was ) ( PP-TMP-PRD ( IN in ) ( NP ( NP ( NNP April ) ( CD 1988 ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD offered ) ( NP ( NP ( QP ( CD 500 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NN debt ) ( NNS securities ) ) ) ) ) ) ) ) ) ) )

The last time IBM tapped the corporate debt market was in April 1988 when it offered 500 million of debt securities


( S ( NP-SBJ-1 ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( NNS visits ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN debt ) ( NN market ) ) ) ) ( VP ( VBP are ) ( VP ( ADVP-MNR ( RB closely ) ) ( VBN watched ) ( PP ( PP ( IN by ) ( NP-LGS ( NP ( NNS treasurers ) ) ( PP-LOC ( IN at ) ( NP ( JJ other ) ( NNS corporations ) ) ) ) ) ( CC and ) ( PP ( IN by ) ( NP-LGS ( NN credit ) ( NN market ) ( NNS analysts ) ) ) ) ) ) )

IBM 's visits to the debt market are closely watched by treasurers at other corporations and by credit market analysts


( S ( NP-SBJ ( DT Some ) ( NNS analysts ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ has ) ( NP ( DT the ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB pinpoint ) ( NP ( NP ( DT the ) ( NN trough ) ) ( PP-LOC ( IN in ) ( NP ( JJ interest-rate ) ( NNS cycles ) ) ) ) ) ) ) ) ) ) ) ) )

Some analysts believe the company has the ability to pinpoint the trough in interest-rate cycles


( S ( PP-TMP ( IN In ) ( NP ( NNP October ) ( CD 1979 ) ) ) ( SBAR-TMP ( NP ( RB just ) ( NNS days ) ) ( IN before ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( VBD raised ) ( NP ( NN interest ) ( NNS rates ) ) ) ) ) ( NP-SBJ ( NNP IBM ) ) ( VP ( VBD offered ) ( NP ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NN debt ) ( NNS securities ) ) ) ) ) )

In October 1979 just days before the Federal Reserve raised interest rates IBM offered 1 billion in debt securities


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN boost ) ) ( PP ( IN in ) ( NP ( NNS rates ) ) ) ) ( VP ( VBD sent ) ( NP-2 ( NP ( NNP IBM ) ( POS 's ) ) ( NNS bonds ) ) ( S-CLR ( VP ( VBG tumbling ) ) ) ( S-ADV ( VP ( VP ( VBG leaving ) ( NP ( NNS underwriters ) ) ( PP ( IN with ) ( NP ( NP ( NNS millions ) ) ( PP ( IN of ) ( NP ( NP ( NNS dollars ) ) ( PP ( IN of ) ( NP ( NNS losses ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBG triggering ) ( NP ( DT a ) ( NN sell-off ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ overall ) ( NN market ) ) ) ) ) ) ) )

The boost in rates sent IBM 's bonds tumbling leaving underwriters with millions of dollars of losses and triggering a sell-off in the overall market


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB be ) ( ADJP-PRD ( JJ bullish ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG doing ) ( NP ( DT a ) ( JJ sizable ) ( JJ 30-year ) ( NN bullet ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( CD one ) ( NN analyst ) ) )

The company ca n't be bullish if they 're doing a sizable 30-year bullet said one analyst


( S ( NP-SBJ ( NNS Others ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP IBM ) ) ( VP ( MD might ) ( VP ( VB increase ) ( NP ( NP ( DT the ) ( NN size ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN offering ) ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 1 ) ( CD billion ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NN investor ) ( NN demand ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ strong ) ) ) ) ) ) ) ) ) ) )

Others said IBM might increase the size of the offering to as much as 1 billion if investor demand is strong


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ has ) ( NP ( NP ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NN debt ) ) ) ) ( VP ( VBN filed ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ) )

The company has 1 billion in debt filed with the Securities and Exchange Commission


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( DT the ) ( QP ( CD 500 ) ( CD million ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ little ) ( NN bit ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN fire ) ( NN drill ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Jim ) ( NNP Ednee ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ industrial ) ( NN bond ) ( NN department ) ) ( PP-LOC ( IN at ) ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc ) ) ) ) ) ) ) )

I think the 500 million is a little bit of a fire drill said Jim Ednee head of the industrial bond department at Drexel Burnham Lambert Inc


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN pricing ) ( NN time ) ) ( VP ( VBZ arrives ) ) ) ) ( NP-SBJ ( DT the ) ( NNS bonds ) ) ( VP ( MD will ) ( VP ( VB come ) ( S-MNR ( UCP-PRD ( ADJP ( DT a ) ( JJ little ) ( JJR richer ) ) ( CC and ) ( PP ( IN in ) ( NP ( DT a ) ( JJR larger ) ( NN amount ) ) ) ) ) ) ) ) ) ) )

I think as the pricing time arrives the bonds will come a little richer and in a larger amount


( NP-HLN ( NNP Treasury ) ( NNS Securities ) )

Treasury Securities


( S ( NP-SBJ ( NNP Treasury ) ( NNS prices ) ) ( VP ( VBD ended ) ( ADJP-CLR ( JJ mixed ) ) ( PP-LOC ( IN in ) ( NP ( JJ light ) ( NN trading ) ) ) ) )

Treasury prices ended mixed in light trading


( S ( NP-SBJ-1 ( DT The ) ( JJ benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( QP ( CD 102 ) ( CD 12\/32 ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.90 ) ( NN % ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( QP ( CD 102 ) ( CD 7\/32 ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( NP ( CD 7.92 ) ( NN % ) ) ( NP-TMP ( NNP Monday ) ) ) ) ) ) ) ) ) ) ) ) )

The benchmark 30-year bond was quoted late at 102 12\/32 to yield 7.90 % compared with 102 7\/32 to yield 7.92 % Monday


( S ( NP-SBJ ( DT The ) ( JJS latest ) ( JJ 10-year ) ( NNS notes ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unchanged ) ( PP ( IN at ) ( NP ( NP ( QP ( CD 100 ) ( CD 16\/32 ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.904 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

The latest 10-year notes were unchanged at 100 16\/32 to yield 7.904 %


( S ( NP-SBJ ( JJ Short-term ) ( NNS rates ) ) ( ADVP ( RB also ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ mixed ) ) ) )

Short-term rates also were mixed


( S ( NP-SBJ ( NP ( DT The ) ( NN discount ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ three-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD rose ) ( ADVP ( RB slightly ) ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( JJ average ) ( NN rate ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Monday ) ( POS 's ) ) ( NN auction ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 7.79 ) ( NN % ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ bond-equivalent ) ( NN yield ) ) ( PP ( IN of ) ( NP ( CD 8.04 ) ( NN % ) ) ) ) ) ) ) ) )

The discount rate on three-month Treasury bills rose slightly from the average rate at Monday 's auction to 7.79 % for a bond-equivalent yield of 8.04 %


( S ( NP-SBJ ( NP ( DT The ) ( NN discount ) ( NN rate ) ) ( PP-LOC ( IN on ) ( NP ( JJ six-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD fell ) ( ADVP ( RB slightly ) ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 7.60 ) ( NN % ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ bond-equivalent ) ( NN yield ) ) ( PP ( IN of ) ( NP ( CD 7.99 ) ( NN % ) ) ) ) ) ) ) ) )

The discount rate on six-month Treasury bills fell slightly to 7.60 % for a bond-equivalent yield of 7.99 %


( NP-HLN ( JJ Corporate ) ( NNS Issues ) )

Corporate Issues


( S ( NP-SBJ-1 ( CD Two ) ( NN junk ) ( NN bond ) ( NNS issues ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( NP-TMP ( NN yesterday ) ) ( PP ( VBG including ) ( NP ( NP ( DT a ) ( JJ scaled-backed ) ( NN offering ) ) ( PP ( IN by ) ( NP ( NNP Beatrice ) ( NNP Co ) ) ) ) ) ) ) )

Two junk bond issues were priced yesterday including a scaled-backed offering by Beatrice Co


( S ( NP-SBJ ( NP ( DT A ) ( NN spokesman ) ) ( PP ( IN for ) ( NP ( NNS underwriters ) ( NNP Salomon ) ( NNP Brothers ) ( NNP Inc. ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN Beatrice ) ) ( VP ( VBD cut ) ( NP ( PRP$ its ) ( JJ high-yield ) ( NN offering ) ) ( PP-CLR ( TO to ) ( NP ( QP ( CD 251 ) ( CD million ) ) ) ) ( PP-CLR ( IN from ) ( NP ( DT a ) ( JJ planned ) ( QP ( CD 350 ) ( CD million ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBD became ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-ADV-2 ( S ( NP-SBJ-1 ( DT the ) ( NN company ) ) ( VP ( MD would ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB give ) ( NP ( NNS investors ) ) ( NP ( JJR higher ) ( NNS yields ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A spokesman for underwriters Salomon Brothers Inc. said Beatrice cut its high-yield offering to 251 million from a planned 350 million after it became clear the company would have to give investors higher yields


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ two-part ) ( NN offering ) ) ) ( NP-SBJ-1 ( NP ( QP ( CD 151 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ senior ) ( JJ subordinated ) ( JJ reset ) ( NNS notes ) ) ) ) ( VP ( VP ( VBD were ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( CD 99.75 ) ) ) ) ) ( CC and ) ( VP ( VBD carried ) ( NP ( NP ( DT a ) ( NN rate ) ) ( PP ( IN of ) ( NP ( QP ( CD 13 ) ( CD 3\/4 ) ) ( NN % ) ) ) ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ-2 ( NP ( DT the ) ( QP ( CD 100 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ senior ) ( JJ subordinated ) ( JJ floating ) ( NN rate ) ( NNS notes ) ) ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( S ( VP ( TO to ) ( VP ( VB float ) ( PP-CLR ( IN at ) ( PP ( NP-ADV ( CD 4.25 ) ( NN percentage ) ( NNS points ) ) ( IN above ) ( NP ( NP ( DT the ) ( NNP London ) ( NNP Interbank ) ( NNP Offered ) ( NNP Rate ) ) ( CC or ) ( NP ( NNP LIBOR ) ) ) ) ) ) ) ) ) ) ) ) ) )

In the two-part offering 151 million of senior subordinated reset notes were priced at 99.75 and carried a rate of 13 3\/4 % while the 100 million of senior subordinated floating rate notes were priced to float at 4.25 percentage points above the London Interbank Offered Rate or LIBOR


( S ( NP-SBJ ( DT The ) ( JJ one-year ) ( NNP LIBOR ) ( NN rate ) ) ( NP-TMP ( NN yesterday ) ) ( VP ( VBD was ) ( NP-PRD ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ) )

The one-year LIBOR rate yesterday was 8 7\/16 %


( S ( PP-TMP ( IN Since ) ( NP ( NP ( DT the ) ( JJ recent ) ( NN deterioration ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN junk-bond ) ( NN market ) ) ) ) ) ( NP-SBJ ( QP ( IN at ) ( JJS least ) ( CD two ) ) ( JJ other ) ( NN junk ) ( NNS issuers ) ) ( VP ( VBP have ) ( VP ( VBN said ) ( SBAR ( S ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP plan ) ( S ( VP ( TO to ) ( VP ( VB scale ) ( PRT ( RP back ) ) ( NP ( JJ planned ) ( JJ high-yield ) ( NNS offerings ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( JJ several ) ( NNS issues ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN postponed ) ) ) ) ) ) ) ) ) )

Since the recent deterioration of the junk-bond market at least two other junk issuers have said they plan to scale back planned high-yield offerings and several issues have been postponed


( S ( NP-SBJ ( NP ( NNP William ) ( NNP Carmichael ) ) ( NP ( NNP Beatrice ) ( JJ chief ) ( JJ financial ) ( NN officer ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( JJ favorable ) ( NN market ) ( NNS conditions ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ( VP ( VBD prompted ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( TO to ) ( VP ( VB plan ) ( NP ( NP ( JJR more ) ( NN debt ) ) ( PP ( IN than ) ( ADJP ( JJ necessary ) ) ) ) ) ) ) ) ) ) ) )

William Carmichael Beatrice chief financial officer said favorable market conditions in September prompted the company to plan more debt than necessary


( S ( S-TPC-2 ( ADVP ( RB However ) ) ( PP ( VBN given ) ( NP ( NP ( DT the ) ( NNS changes ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ( NNS conditions ) ) ) ( SBAR ( WHNP-153 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN occurred ) ( PP-TMP ( IN since ) ( NP ( RB then ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( PRP we ) ) ( VP ( VBD decided ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( RB only ) ( DT the ) ( NN amount ) ) ( VP ( VBD needed ) ( S ( VP ( TO to ) ( VP ( VB proceed ) ( PP-CLR ( IN with ) ( NP ( PRP$ our ) ( JJ contemplated ) ( NN recapitalization ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

However given the changes in the market conditions that have occurred since then we decided to sell only the amount needed to proceed with our contemplated recapitalization he said


( S ( PP ( IN Under ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( JJ original ) ( NN bank ) ( NN credit ) ( NN agreement ) ) ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN required ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( QP ( CD 250 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ subordinated ) ( NN debt ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB repay ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN bank ) ( NNS borrowings ) ) ( VP ( VBN drawn ) ( S-PRP ( VP ( TO to ) ( VP ( VB redeem ) ( NP ( NP ( QP ( CD 526.3 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( VBG increasing ) ( NN rate ) ( NNS debentures ) ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Under the firm 's original bank credit agreement it was required to raise 250 million of subordinated debt to be used to repay some of the bank borrowings drawn to redeem 526.3 million of increasing rate debentures in August


( S ( ADVP-TMP ( NP ( DT A ) ( NN month ) ) ( RB ago ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-1 ( NNP Beatrice ) ) ( ADVP-TMP ( RB first ) ) ( VP ( VBD filed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NN debt ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN company ) ) ( VP ( VBD had ) ( VP ( VBN planned ) ( S ( VP ( TO to ) ( VP ( VB offer ) ( NP ( NP ( QP ( CD 200 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ senior ) ( JJ subordinated ) ( JJ reset ) ( NNS notes ) ) ) ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( QP ( CD 12 ) ( CD 3\/4 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) )

A month ago when Beatrice first filed to sell debt the company had planned to offer 200 million of its senior subordinated reset notes at a yield of 12 3\/4 %


( S ( NP-SBJ-1 ( NP ( DT The ) ( QP ( CD 150 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( JJ senior ) ( JJ subordinated ) ( JJ floating-rate ) ( NNS notes ) ) ) ) ( VP ( VBD were ) ( VP ( VBN targeted ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN offered ) ( PP ( IN at ) ( NP ( DT a ) ( NN price ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB float ) ( PP-LOC-CLR ( NP-ADV ( CD four ) ( NN percentage ) ( NNS points ) ) ( IN above ) ( NP ( DT the ) ( JJ three-month ) ( NNP LIBOR ) ) ) ) ) ) ) ) ) ) ) ) )

The 150 million in senior subordinated floating-rate notes were targeted to be offered at a price to float four percentage points above the three-month LIBOR


( S ( S ( PP-TMP ( IN By ) ( NP ( NNP October ) ) ) ( ADVP ( RB however ) ) ( NP-SBJ ( NN market ) ( NNS conditions ) ) ( VP ( VBD had ) ( VP ( VBN deteriorated ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( DT the ) ( NN reset ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN targeted ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN offered ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( QP ( IN between ) ( CD 13 ) ( CD 1\/4 ) ( NN % ) ( CC and ) ( CD 13 ) ( CD 1\/2 ) ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) )

By October however market conditions had deteriorated and the reset notes were targeted to be offered at a yield of between 13 1\/4 % and 13 1\/2 %


( S ( NP-SBJ ( NNP Mr. ) ( NNP Carmichael ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS investors ) ) ( ADVP ( RB also ) ) ( VP ( VBD demanded ) ( NP ( JJR stricter ) ( NNS convenants ) ) ) ) ) ) )

Mr. Carmichael said investors also demanded stricter convenants


( S ( NP-SBJ ( NNP Continental ) ( NNP Cablevision ) ( NNP Inc. ) ) ( PP ( IN via ) ( NP ( NP ( NNS underwriters ) ) ( PP ( IN at ) ( NP ( NP ( NNP Morgan ) ( NNP Stanley ) ) ( CC & ) ( NP ( NNP Co. ) ) ) ) ) ) ( VP ( VBD priced ) ( NP ( NP ( QP ( CD 350 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NN junk ) ( NNS bonds ) ) ) ) ( PP ( IN at ) ( NP ( NN par ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( QP ( CD 12 ) ( CD 7\/8 ) ) ( NN % ) ) ) ) ) ) )

Continental Cablevision Inc. via underwriters at Morgan Stanley & Co. priced 350 million of junk bonds at par to yield 12 7\/8 %


( NP-HLN ( JJ Mortgage-Backed ) ( NNS Securities ) )

Mortgage-Backed Securities


( S ( NP-SBJ ( NP ( NNP J.C. ) ( NNP Penney ) ) ( CC & ) ( NP ( NNP Co. ) ) ) ( VP ( VBD issued ) ( NP ( NP ( QP ( CD 350 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( NNS securities ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( JJ credit-card ) ( NN receivables ) ) ) ) ) ) ) ) )

J.C. Penney & Co. issued 350 million of securities backed by credit-card receivables


( S ( NP-SBJ-1 ( DT The ) ( NNS securities ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( CD 99.1875 ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( QP ( RB about ) ( CD 9.19 ) ) ( NN % ) ) ) ) ) ) ) )

The securities were priced at 99.1875 to yield about 9.19 %


( S ( NP-SBJ ( NP ( NNS Underwriters ) ) ( PP-LOC ( IN at ) ( NP ( NNP First ) ( NNP Boston ) ( NNP Corp. ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP J.C. ) ( NNP Penney ) ( JJ credit-card ) ( NNS securities ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( JJ 10-year ) ( JJ average ) ( NN life ) ) ( SBAR ( WHNP-154 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB much ) ( JJR longer ) ) ( PP ( IN than ) ( NP ( JJ previous ) ( JJ such ) ( NNS issues ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Underwriters at First Boston Corp. said the J.C. Penney credit-card securities are the first with a 10-year average life which is much longer than previous such issues


( S ( ADVP-LOC ( RB Elsewhere ) ) ( NP-SBJ-1 ( NP ( NP ( NNP Ginnie ) ( NNP Mae ) ( POS 's ) ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( PP ( IN for ) ( NP ( NNP November ) ( NN delivery ) ) ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 98 ) ( CD 18\/32 ) ) ( VP ( NN bid ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 5\/32 ) ) ( PP ( IN from ) ( NP-TMP ( JJ late ) ( NNP Monday ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( QP ( RB about ) ( CD 9.333 ) ) ( NN % ) ) ( PP ( TO to ) ( NP ( DT a ) ( JJ 12-year ) ( JJ average ) ( NN life ) ( NN assumption ) ) ) ) ) ) ) ) )

Elsewhere Ginnie Mae 's 9 % issue for November delivery was quoted at 98 18\/32 bid up 5\/32 from late Monday to yield about 9.333 % to a 12-year average life assumption


( S ( NP-SBJ-1 ( NP ( NNP Freddie ) ( NNP Mac ) ( POS 's ) ) ( ADJP ( CD 9 ) ( CD 1\/2 ) ( NN % ) ) ( NN issue ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP ( IN at ) ( NP ( CD 99 ) ( CD 20\/32 ) ) ) ( ADVP ( RB up ) ( NP ( CD 3\/32 ) ) ( PP ( IN from ) ( FRAG ( NP ( NNP Monday ) ) ) ) ) ) ) )

Freddie Mac 's 9 1\/2 % issue was quoted at 99 20\/32 up 3\/32 from Monday


( S ( NP-SBJ ( NP ( NNP Fannie ) ( NNP Mae ) ( POS 's ) ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( VP ( VBD was ) ( PP-PRD ( IN at ) ( NP ( QP ( CD 98 ) ( CD 7\/32 ) ) ) ) ( ADVP ( RB up ) ( NP ( CD 1\/8 ) ) ) ) )

Fannie Mae 's 9 % issue was at 98 7\/32 up 1\/8


( FRAG ( PP-LOC ( IN On ) ( NP ( DT the ) ( NN pricing ) ( NN front ) ) ) ( NP ( NP ( DT an ) ( JJ 11-class ) ( NN issue ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 500 ) ( CD million ) ) ) ( NP ( NNP Federal ) ( NNP Home ) ( NNP Loan ) ( NNP Mortgage ) ( NNP Corp ) ) ) ) ) )

On the pricing front an 11-class issue of 500 million Federal Home Loan Mortgage Corp


( S ( NP-SBJ-1 ( NNP Remic ) ( NN mortgage ) ( NNS securities ) ) ( VP ( VBD was ) ( VP ( VBN launched ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( NNP Morgan ) ( NNP Stanley ) ( NN group ) ) ) ) ) )

Remic mortgage securities was launched by a Morgan Stanley group


( S ( NP-SBJ-1 ( DT The ) ( NN offering ) ) ( VP ( VBZ is ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Freddie ) ( NNP Mac ) ( POS 's ) ) ( ADJP ( CD 10 ) ( NN % ) ) ( NN issue ) ) ) ( PP ( IN with ) ( NP ( DT a ) ( JJ weighted ) ( JJ average ) ( NN term ) ) ) ( PP ( TO to ) ( NP ( NP ( NN maturity ) ) ( PP ( IN of ) ( NP ( CD 29.583 ) ( NNS months ) ) ) ) ) ) ) )

The offering is backed by Freddie Mac 's 10 % issue with a weighted average term to maturity of 29.583 months


( NP-HLN ( JJ Municipal ) ( NNS Issues ) )

Municipal Issues


( S ( NP-SBJ ( JJ Municipal ) ( NNS bonds ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB little ) ( VBN changed ) ( PP ( TO to ) ( ADJP ( NP-ADV ( CD 1\/2 ) ( NN point ) ) ( JJR higher ) ) ) ) ( PP ( IN in ) ( NP ( JJ late ) ( NNS dealings ) ) ) ) )

Municipal bonds were little changed to 1\/2 point higher in late dealings


( S ( S ( NP-SBJ-1 ( PRP We ) ) ( VP ( VBD were ) ( VP ( VBN oversold ) ) ) ) ( CC and ) ( S ( NP-TMP ( NN today ) ) ( NP-SBJ ( PRP we ) ) ( VP ( VBD bounced ) ( PRT ( RP back ) ) ) ) )

We were oversold and today we bounced back


( SINV ( S-TPC-2 ( NP-SBJ ( DT Some ) ( NNS accounts ) ) ( VP ( VBD came ) ( PRT ( RP in ) ) ( PP ( IN for ) ( NP ( NP ( DT some ) ( NNS blocks ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ secondary ) ( NN market ) ) ) ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN seen ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( NN while ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( CD one ) ( NN trader ) ) )

Some accounts came in for some blocks in the secondary market which we have n't seen for a while said one trader


( S ( S ( NP-SBJ ( EX There ) ) ( VP ( VBD were ) ( NP-PRD ( DT no ) ( VB sell ) ( NNS lists ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN calendar ) ) ( VP ( VBZ is ) ( VP ( VBG lightening ) ( PRT ( RP up ) ) ( NP-ADV ( DT a ) ( NN bit ) ) ) ) ) )

There were no sell lists and the calendar is lightening up a bit


( S ( S-TPC-2 ( NP-SBJ ( EX There ) ) ( VP ( VBZ 's ) ( NP-PRD ( NN light ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN tunnel ) ) ) ) ) ( PP ( IN for ) ( NP ( NNS municipals ) ) ) ) ) ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD said ) ( S ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NNS prices ) ) ( VP ( TO to ) ( VP ( VB inch ) ( ADVP ( RB up ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ near ) ( NN term ) ) ) ) ) ) ) ) ) ) ) ) )

There 's light at the end of the tunnel for municipals he said adding that he expects prices to inch up in the near term


( S ( NP-SBJ ( NP ( DT The ) ( NN market ) ( POS 's ) ) ( NN tone ) ) ( VP ( VBD improved ) ( PP-TMP ( IN after ) ( NP ( NP ( NP ( NNP Monday ) ( POS 's ) ) ( NN pricing ) ) ( PP ( IN of ) ( NP ( ADJP ( QP ( CD 813 ) ( CD million ) ) ) ( NNP New ) ( NNP York ) ( NNP City ) ( JJ general ) ( NN obligation ) ( NNS bonds ) ) ) ) ) ) )

The market 's tone improved after Monday 's pricing of 813 million New York City general obligation bonds


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NN issue ) ( POS 's ) ) ( JJ smooth ) ( NN absorption ) ) ( VP ( VBD eased ) ( NP ( NNS fears ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN supply ) ) ( VP ( MD would ) ( VP ( VB overwhelm ) ( NP ( NN demand ) ) ( PP-TMP ( IN in ) ( NP ( JJ coming ) ( NNS sessions ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS traders ) ) ( VP ( VBD said ) ) )

The issue 's smooth absorption eased fears that supply would overwhelm demand in coming sessions traders said