( S ( NP-SBJ-1 ( NNP General ) ( NNPS Motors ) ( NNP Corp. ) ) ( VP ( VBZ wants ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 15 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Jaguar ) ( NNP PLC ) ) ) ) ( S-ADV ( VP ( VBG marking ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN salvo ) ) ( PP ( IN in ) ( NP ( NP ( DT a ) ( JJ possible ) ( JJ full-scale ) ( NN battle ) ) ( PP ( IN against ) ( NP ( NNP Ford ) ( NNP Motor ) ( NNP Co. ) ) ) ( PP ( IN for ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ British ) ( NN car ) ( NN maker ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

General Motors Corp. wants to buy as much as 15 % of Jaguar PLC marking its first salvo in a possible full-scale battle against Ford Motor Co. for control of the British car maker


( S ( NP-SBJ ( NNP GM ) ) ( VP ( VP ( VBD sought ) ( NP ( NNP U.S. ) ( JJ antitrust ) ( NN clearance ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ( S-1 ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 15 ) ( CD million ) ) ) ( NN worth ) ) ( PP ( IN of ) ( NNP Jaguar ) ( NNS shares ) ) ) ) ) ) ) ( CC but ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB own ) ( NP ( DT any ) ) ( ADVP-TMP ( RB yet ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NNP GM ) ( NNS officials ) ) ( UCP-LOC ( ADVP ( RB here ) ) ( CC and ) ( PP ( IN at ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP Detroit ) ( NN headquarters ) ) ) ) ) ) ) ) )

GM sought U.S. antitrust clearance last week to purchase more than 15 million worth of Jaguar shares but does n't own any yet according to GM officials here and at the company 's Detroit headquarters


( S ( S-TPC-2 ( NP-SBJ ( DT The ) ( NN No. ) ( CD 1 ) ( NNP U.S. ) ( NN auto ) ( NN maker ) ) ( ADVP-TMP ( RB then ) ) ( VP ( VBD wrote ) ( NP-CLR ( NNP Jaguar ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB go ) ( PP-DIR ( TO to ) ( NP ( DT that ) ( ADJP ( CD 15 ) ( NN % ) ) ( NN level ) ) ) ( SBAR-TMP ( IN once ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ wins ) ( NP ( DT the ) ( JJ U.S. ) ( NN clearance ) ( S ( VP ( TO to ) ( VP ( VB go ) ( PP-LOC ( IN beyond ) ( NP ( QP ( CD 15 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT a ) ( NNP Jaguar ) ( NN spokesman ) ) ( VP ( VBD said ) ( NP-TMP ( NN yesterday ) ) ) )

The No. 1 U.S. auto maker then wrote Jaguar that it intends to go to that 15 % level once it wins the U.S. clearance to go beyond 15 million a Jaguar spokesman said yesterday


( S ( NP-SBJ ( DT The ) ( NNP GM ) ( NN move ) ) ( VP ( VBZ follows ) ( NP ( NP ( NP ( NNP Tuesday ) ( POS 's ) ) ( NN declaration ) ) ( PP ( IN by ) ( NP ( NP ( NNP Ford ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ holds ) ( NP ( NP ( DT an ) ( JJ unwelcome ) ( ADJP ( CD 12.45 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ prepared ) ( S ( VP ( TO to ) ( VP ( VB bid ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( JJ entire ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) )

The GM move follows Tuesday 's declaration by Ford which holds an unwelcome 12.45 % stake in Jaguar that it is prepared to bid for the entire company


( S ( NP-SBJ ( NNP GM ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ close ) ( PP ( TO to ) ( S-NOM ( VP ( VBG completing ) ( NP ( NP ( DT a ) ( JJ friendly ) ( NN deal ) ) ( PP ( IN with ) ( NP ( NNP Jaguar ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB involve ) ( NP ( NP ( DT an ) ( JJ eventual ) ( ADJP ( CD 30 ) ( NN % ) ) ( NN stake ) ) ( CC and ) ( NP ( JJ joint ) ( NN manufacturing ) ( NNS ventures ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

GM is close to completing a friendly deal with Jaguar that is likely to involve an eventual 30 % stake and joint manufacturing ventures


( S ( NP-SBJ-1 ( JJ Speculative ) ( NNS investors ) ) ( S-ADV ( VP ( VBG betting ) ( PP-CLR ( IN on ) ( NP ( NP ( DT an ) ( JJ imminent ) ( NN clash ) ) ( PP ( IN between ) ( NP ( NNP Ford ) ( CC and ) ( NNP GM ) ) ) ) ) ) ) ( VP ( VBD pushed ) ( ADVP-DIR ( RP up ) ) ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( NN share ) ( NN price ) ) ( NP-EXT ( NP ( CD five ) ( NN pence ) ) ( PRN ( NP ( CD eight ) ( NNP U.S. ) ( NNS cents ) ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( DT a ) ( JJ near-record ) ( CD 720 ) ( NN pence ) ) ( PRN ( NP ( CD 11.60 ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ late ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNP London ) ( POS 's ) ) ( NN stock ) ( NN exchange ) ) ) ) ) ( NP-TMP ( NN yesterday ) ) ) )

Speculative investors betting on an imminent clash between Ford and GM pushed up Jaguar 's share price five pence eight U.S. cents to a near-record 720 pence 11.60 in late trading on London 's stock exchange yesterday


( S ( PP-TMP ( IN Since ) ( NP ( NNP Tuesday ) ) ) ( NP-SBJ ( DT the ) ( NNS shares ) ) ( VP ( VBP have ) ( VP ( VBN gained ) ( NP ( QP ( RB nearly ) ( CD 4 ) ) ( NN % ) ) ) ) )

Since Tuesday the shares have gained nearly 4 %


( S ( CC But ) ( NP-SBJ ( NP ( DT an ) ( JJ all-out ) ( NN bidding ) ( NN war ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJ top ) ( NN auto ) ( NNS giants ) ) ) ( PP ( IN for ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( VBG leading ) ( NN luxury-car ) ( NN maker ) ) ) ) ( VP ( VBZ seems ) ( ADJP-PRD ( JJ unlikely ) ) ) )

But an all-out bidding war between the world 's top auto giants for Britain 's leading luxury-car maker seems unlikely


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( MD will ) ( RB not ) ( VP ( VB go ) ( PP-DIR ( IN over ) ( NP ( DT a ) ( JJ certain ) ( NN level ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP David ) ( NNP N. ) ( NNP McCammon ) ) ( NP ( NP ( NP ( NNP Ford ) ( POS 's ) ) ( NN vice ) ( NN president ) ) ( PP ( IN for ) ( NP ( NN finance ) ) ) ) ) ( PP-LOC-2 ( IN at ) ( NP ( NP ( DT a ) ( NN news ) ( NN conference ) ) ( NP-TMP ( NN yesterday ) ) ) ) ( PP-LOC-3 ( IN in ) ( NP ( NP ( NNP Dearborn ) ) ( NP ( NNP Mich ) ) ) ) )

We will not go over a certain level said David N. McCammon Ford 's vice president for finance at a news conference yesterday in Dearborn Mich


( S ( NP-SBJ ( EX There ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT some ) ( NN price ) ) ( SBAR ( WHPP-1 ( IN at ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-2 ( PRP we ) ) ( VP ( MD 'd ) ( VP ( VB stop ) ( S ( VP ( NN bidding ) ) ) ) ) ) ) ) ) )

There 's some price at which we 'd stop bidding


( S ( NP-SBJ ( PRP He ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB specify ) ( SBAR-NOM ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ) ) ) ) ) )

He would n't specify what it was


( S ( CC And ) ( NP-SBJ ( JJ powerful ) ( JJ political ) ( NNS pressures ) ) ( VP ( MD may ) ( VP ( VB convince ) ( S ( NP-SBJ ( DT the ) ( JJ Conservative ) ( NN government ) ) ( VP ( TO to ) ( VP ( VB keep ) ( NP ( NP ( PRP$ its ) ( JJ so-called ) ( JJ golden ) ( NN share ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ limits ) ( NP ( DT any ) ( JJ individual ) ( NN holding ) ) ( PP-CLR ( TO to ) ( NP ( CD 15 ) ( NN % ) ) ) ) ) ) ) ( SBAR-TMP ( IN until ) ( S ( NP-SBJ ( DT the ) ( NN restriction ) ) ( VP ( VBZ expires ) ( PP-CLR-TMP ( IN on ) ( NP ( NNP Dec. ) ( CD 31 ) ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) )

And powerful political pressures may convince the Conservative government to keep its so-called golden share which limits any individual holding to 15 % until the restriction expires on Dec. 31 1990


( SINV ( S-TPC-2 ( NP-SBJ ( PRP I ) ) ( ADVP ( RB really ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB see ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBG doing ) ( NP ( NP ( NN something ) ) ( SBAR ( WHNP-1 ( DT that ) ) ( S ( NP-SBJ ( NNP Jaguar ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB want ) ) ) ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( CD 14 ) ( NNS months ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Kenneth ) ( NNP Warren ) ) ( NP ( NP ( NP ( DT a ) ( JJ Conservative ) ( NN member ) ) ( PP ( IN of ) ( NP ( NNP Parliament ) ) ) ) ( CC and ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Select ) ( NNP Committee ) ) ( PP ( IN on ) ( NP ( NNP Trade ) ( CC and ) ( NNP Industry ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( NNP House ) ) ( PP ( IN of ) ( NP ( NNPS Commons ) ) ) ) ) ) ) ) ) ) )

I really do n't see the government doing something that Jaguar does n't want over the next 14 months said Kenneth Warren a Conservative member of Parliament and chairman of the Select Committee on Trade and Industry in Britain 's House of Commons


( S ( S ( NP-SBJ ( DT The ) ( JJ golden ) ( NN share ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ single ) ( NN share ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( JJ magic ) ( NN share ) ) ) ) )

The golden share is a single share but it is the magic share


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( VP ( VBD retained ) ( NP ( DT the ) ( JJ single ) ( NN share ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VP ( VBG selling ) ( NP ( NP ( PRP$ its ) ( NN stake ) ) ( PP ( IN in ) ( NP ( NNP Jaguar ) ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1984 ) ) ) ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ nationalistic ) ( NN practice ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG protecting ) ( NP ( JJ former ) ( JJ government-owned ) ( NNS enterprises ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB deflect ) ( NP ( NP ( NN criticism ) ) ( PP ( IN of ) ( NP ( NN privatization ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The government retained the single share after selling its stake in Jaguar in 1984 part of a nationalistic practice of protecting former government-owned enterprises to deflect criticism of privatization


( S ( NP-SBJ ( DT The ) ( ADJP ( CD 15 ) ( NN % ) ) ( NN restriction ) ) ( VP ( VBZ covers ) ( NP ( NP ( DT any ) ( JJ would-be ) ( NN suitor ) ) ( ADJP ( JJ British ) ( CC or ) ( JJ foreign ) ) ) ) )

The 15 % restriction covers any would-be suitor British or foreign


( S ( NP-SBJ-1 ( NNP Ford ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ willing ) ( S ( VP ( TO to ) ( VP ( VB bid ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 100 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( NNS shares ) ) ) ) ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-2 ( DT both ) ( NP ( DT the ) ( NN government ) ) ( CC and ) ( NP ( NNP Jaguar ) ( NNS shareholders ) ) ) ( VP ( VBP agree ) ( S ( VP ( TO to ) ( VP ( VB relax ) ( NP ( DT the ) ( JJ anti-takeover ) ( NN barrier ) ) ( ADVP-TMP ( RB prematurely ) ) ) ) ) ) ) ) ) )

Ford is willing to bid for 100 % of Jaguar 's shares if both the government and Jaguar shareholders agree to relax the anti-takeover barrier prematurely


( S ( S ( PP-PRD ( IN As ) ( NP ( NP ( NP ( NNP Jaguar ) ( POS 's ) ) ( JJS biggest ) ( NN holder ) ) ( CC and ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( JJS biggest ) ( NN car ) ( NN maker ) ) ) ) ) ( NP-SBJ-2 ( NNP Ford ) ) ( VP ( MD could ) ( VP ( VB turn ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN heat ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VP ( VBG convening ) ( NP ( NP ( DT a ) ( JJ special ) ( NNS shareholders ) ( POS ' ) ) ( NN meeting ) ) ) ( CC and ) ( VP ( VBG urging ) ( NP-1 ( NNS holders ) ) ( S ( VP ( TO to ) ( VP ( VB drop ) ( NP ( DT the ) ( NNS limits ) ) ( ADVP-TMP ( RB early ) ) ) ) ) ) ) ) ) ) ) )

As Jaguar 's biggest holder and Britain 's biggest car maker Ford could turn up the heat by convening a special shareholders ' meeting and urging holders to drop the limits early


( S ( NP-SBJ ( NNP Ford ) ) ( VP ( MD might ) ( VP ( VB succeed ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( JJ many ) ( NNS shareholders ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NP ( NNS speculators ) ) ( ADJP ( JJ keen ) ( PP ( IN for ) ( NP ( DT a ) ( JJ full ) ( NN bid ) ) ) ) ) ( CC or ) ( NP ( NP ( JJ institutional ) ( NNS investors ) ) ( ADJP ( JJ unhappy ) ( PP ( IN over ) ( NP ( NP ( NP ( NNP Jaguar ) ( NN management ) ( POS 's ) ) ( VBG handling ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ current ) ( JJ financial ) ( NNS difficulties ) ) ) ) ) ) ) ) ) ) ) ) ) )

Ford might succeed because many shareholders are speculators keen for a full bid or institutional investors unhappy over Jaguar management 's handling of its current financial difficulties


( S ( NP-SBJ ( DT The ) ( NN government ) ) ( ADVP ( RB probably ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB give ) ( PRT ( RP in ) ) ( ADVP-MNR ( RB readily ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( JJ hostile ) ( NN foray ) ) ( PP ( IN by ) ( NP ( NNP Ford ) ) ) ) ) ( ADVP ( RB however ) ) ) ) )

The government probably would n't give in readily to a hostile foray by Ford however


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ has ) ( VP ( VBN relinquished ) ( NP ( DT a ) ( JJ golden ) ( NN share ) ) ( ADVP-TMP ( ADVP ( RB only ) ( RB once ) ( RB before ) ) ( PP-TMP ( IN during ) ( NP ( NP ( NP ( NNP British ) ( NNP Petroleum ) ( NNP Co. ) ( POS 's ) ) ( ADJP ( NP ( QP ( CD 2.5 ) ( CD billion ) ) ) ( ADJP ( NP ( QP ( CD 4 ) ( CD billion ) ) ) ) ) ( NN takeover ) ) ( PP ( IN of ) ( NP ( NNP Britoil ) ( NNP PLC ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1988 ) ) ) ) ) ) ) ) )

It has relinquished a golden share only once before during British Petroleum Co. 's 2.5 billion 4 billion takeover of Britoil PLC in 1988


( S ( S ( PP-PRD ( IN In ) ( S-NOM ( VP ( VBG wooing ) ( NP ( JJ British ) ( NNS lawmakers ) ) ) ) ) ) ( NP-SBJ-1 ( NNP GM ) ) ( VP ( VBZ has ) ( VP ( VBN pointed ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ its ) ( NN willingness ) ( S ( VP ( TO to ) ( VP ( VB settle ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( NN minority ) ( NN stake ) ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB keep ) ( S ( NP-SBJ ( NNP Jaguar ) ) ( ADJP-PRD ( JJ British-owned ) ( CC and ) ( JJ independent ) ) ) ) ) ) ) ) ) )

In wooing British lawmakers GM has pointed out that its willingness to settle for a minority stake would keep Jaguar British-owned and independent


( S ( NP-TMP ( DT This ) ( NN week ) ) ( NP-SBJ ( DT the ) ( NNP U.S. ) ( NN auto ) ( NN giant ) ) ( VP ( VBD paid ) ( SBAR-CLR ( IN for ) ( S ( NP-SBJ ( NP ( CD 10 ) ( NAC ( NNP House ) ( PP ( IN of ) ( NP ( NNPS Commons ) ) ) ) ( NNS members ) ) ( CC and ) ( NP ( CD two ) ( NAC ( NNP House ) ( PP ( IN of ) ( NP ( NNPS Lords ) ) ) ) ( NNS members ) ) ) ( VP ( TO to ) ( VP ( VP ( VB fly ) ( PP-DIR ( TO to ) ( NP ( NNP Detroit ) ) ) ) ( CC and ) ( VP ( VB tour ) ( NP ( PRP$ its ) ( NNS operations ) ( RB there ) ) ) ) ) ) ) ) )

This week the U.S. auto giant paid for 10 House of Commons members and two House of Lords members to fly to Detroit and tour its operations there


( S ( SBAR ( IN While ) ( S ( NP-SBJ ( DT the ) ( NN visit ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ unrelated ) ( PP ( TO to ) ( NP ( NNP Jaguar ) ) ) ) ) ) ) ( NP-SBJ ( NNP GM ) ( NNP Chairman ) ( NNP Roger ) ( NNP Smith ) ) ( VP ( VBD answered ) ( NP ( NP ( NP ( DT the ) ( NNS legislators ) ( POS ' ) ) ( NNS questions ) ) ( PP ( IN about ) ( NP ( PRP it ) ) ) ) ( PP-TMP ( IN over ) ( NP ( NN lunch ) ) ) ( NP-TMP ( NNP Tuesday ) ) ) )

While the visit was unrelated to Jaguar GM Chairman Roger Smith answered the legislators ' questions about it over lunch Tuesday


( SINV ( S-TPC-2 ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NNP Jaguar ) ) ( VP ( MD should ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN smothered ) ( PP ( IN by ) ( NP-LGS ( NN anyone ) ( JJ else ) ) ) ) ) ) ) ) ) ) ( VP ( VBD recalled ) ) ( NP-SBJ ( CD one ) ( NN participant ) ) )

He said Jaguar should n't be smothered by anyone else recalled one participant


( S ( NP-SBJ ( NN Politics ) ) ( ADVP ( RB also ) ) ( VP ( VBZ influences ) ( NP ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( NN thinking ) ) ( PP ( IN on ) ( NP ( DT the ) ( JJ anti-takeover ) ( NN restriction ) ) ) ) ) )

Politics also influences the government 's thinking on the anti-takeover restriction


( S ( S ( NP-SBJ-1 ( DT The ) ( NNPS Conservatives ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB dare ) ( S ( VP ( VB jeopardize ) ( NP ( NP ( JJ marginal ) ( NNP Tory ) ( NNS seats ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Coventry ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( NNP Jaguar ) ) ( VP ( VBZ has ) ( NP ( NN headquarters ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC nor ) ( SINV ( MD can ) ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( ADVP-MNR ( RB easily ) ) ( RB back ) ( PRT ( RP down ) ) ( PP-CLR ( IN on ) ( NP ( NP ( VBN promised ) ( NN protection ) ) ( PP ( IN for ) ( NP ( DT a ) ( VBN privatized ) ( NN company ) ) ) ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ proceeds ) ( PP-CLR ( IN with ) ( NP ( JJ controversial ) ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB privatize ) ( NP ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( NN water ) ( CC and ) ( NN electricity ) ( NNS industries ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Conservatives do n't dare jeopardize marginal Tory seats in Coventry where Jaguar has headquarters nor can the government easily back down on promised protection for a privatized company while it proceeds with controversial plans to privatize most of Britain 's water and electricity industries


( S ( NP-SBJ ( NNP Prime ) ( NNP Minister ) ( NNP Margaret ) ( NNP Thatcher ) ) ( VP ( MD might ) ( ADVP ( RB however ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ receptive ) ( PP ( TO to ) ( NP ( NP ( DT any ) ( NN request ) ) ( PP ( IN by ) ( NP ( NNP Jaguar ) ( NNP Chairman ) ( NNP Sir ) ( NNP John ) ( NNP Egan ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN restriction ) ( POS 's ) ) ( JJ early ) ( NN removal ) ( S ( VP ( TO to ) ( VP ( VB let ) ( S ( NP-SBJ ( NNP GM ) ) ( VP ( VB amass ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 15 ) ) ( NN % ) ) ) ( CC or ) ( VP ( VB mount ) ( NP ( DT a ) ( JJ friendly ) ( NN suitor ) ( NN bid ) ) ( PP-CLR ( IN against ) ( NP ( NNP Ford ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Prime Minister Margaret Thatcher might however be receptive to any request by Jaguar Chairman Sir John Egan for the restriction 's early removal to let GM amass more than 15 % or mount a friendly suitor bid against Ford


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( NN end ) ) ) ( NP-SBJ ( NP ( NNP Sir ) ( NNP John ) ) ( PRN ( CONJP ( RB rather ) ( IN than ) ) ( NP ( NP ( DT the ) ( NN government ) ) ( CC or ) ( NP ( NNP Jaguar ) ( NNS shareholders ) ) ) ) ) ( VP ( MD may ) ( VP ( VB hold ) ( NP ( NP ( DT the ) ( NN key ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ unlocks ) ( NP ( DT the ) ( JJ golden ) ( NN share ) ) ) ) ) ) ) ) )

In the end Sir John rather than the government or Jaguar shareholders may hold the key that unlocks the golden share


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( DT the ) ( NNP Soviet ) ( NNP Union ) ) ( VP ( VBZ grapples ) ( PP-CLR ( IN with ) ( NP ( PRP$ its ) ( VBG worsening ) ( NN economy ) ) ) ) ) ) ( NP-SBJ ( JJ leading ) ( NNS reformers ) ) ( VP ( VBP have ) ( VP ( VBN drawn ) ( PRT ( RP up ) ) ( NP ( NP ( DT a ) ( NN blueprint ) ) ( PP ( IN for ) ( NP ( NN change ) ) ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VB push ) ( NP ( DT the ) ( NN nation ) ) ( ADVP-DIR ( ADVP ( RB much ) ( RBR closer ) ) ( PP ( TO to ) ( NP ( DT a ) ( NN free-market ) ( NN system ) ) ) ) ) ) ) ) ) ) ) )

As the Soviet Union grapples with its worsening economy leading reformers have drawn up a blueprint for change designed to push the nation much closer to a free-market system


( S ( NP-SBJ ( DT The ) ( NNS proposals ) ) ( VP ( VBP go ) ( PP-DIR ( ADVP ( RB far ) ) ( IN beyond ) ( NP ( NP ( DT the ) ( ADJP ( ADJP ( JJ current ) ) ( CC and ) ( ADJP ( RB rather ) ( JJ confused ) ) ) ( NNS policies ) ) ( PP ( IN of ) ( NP ( NP ( FW perestroika ) ) ( NP ( NP ( NP ( NNP Mikhail ) ( NNP Gorbachev ) ( POS 's ) ) ( NN restructuring ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) ) ) )

The proposals go far beyond the current and rather confused policies of perestroika Mikhail Gorbachev 's restructuring of the economy


( S ( NP-SBJ ( PRP They ) ) ( VP ( VBD lay ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( JJ clear ) ( NN timetable ) ( CC and ) ( NN methodology ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG liberalizing ) ( NP ( NP ( DT the ) ( NN system ) ) ( PP ( IN of ) ( S-NOM ( VP ( VP ( VBG setting ) ( NP ( NNS prices ) ) ) ( VP ( VBG breaking ) ( PRT ( RP up ) ) ( NP ( JJ huge ) ( JJ industrial ) ( NNS monopolies ) ) ) ( CC and ) ( VP ( VBG putting ) ( NP ( JJ unprofitable ) ( JJ state-owned ) ( NNS companies ) ) ( PP-PUT ( IN out ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They lay out a clear timetable and methodology for liberalizing the system of setting prices breaking up huge industrial monopolies and putting unprofitable state-owned companies out of business


( S ( NP-SBJ ( PRP They ) ) ( ADVP ( RB also ) ) ( VP ( VP ( VBP address ) ( NP ( NP ( JJ such ) ( JJ taboo ) ( NNS subjects ) ) ( PP ( IN as ) ( NP ( NP ( DT the ) ( NN likelihood ) ) ( PP ( IN of ) ( NP ( NP ( NN unemployment ) ) ( CC and ) ( NP ( JJ high ) ( NN inflation ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VB recommend ) ( NP ( NP ( NNS ways ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB soften ) ( NP ( DT the ) ( JJ social ) ( NNS consequences ) ) ) ) ) ) ) ) ) )

They also address such taboo subjects as the likelihood of unemployment and high inflation and recommend ways to soften the social consequences


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ-1 ( NP ( JJ many ) ( NNS solutions ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( JJ economic ) ( NNS troubles ) ) ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBN discussed ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN blueprint ) ) ( VP ( VBZ is ) ( VP ( VBG attracting ) ( NP ( JJ widespread ) ( NN attention ) ) ( NP-LOC ( RB here ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( PRP$ its ) ( NN comprehensiveness ) ) ( CC and ) ( NP ( VBN presumed ) ( JJ high-level ) ( NN authorship ) ) ) ) ) ) )

While many solutions to the nation 's economic troubles are being discussed the blueprint is attracting widespread attention here because of its comprehensiveness and presumed high-level authorship


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN published ) ( S-CLR ( ADJP-PRD ( JJ unsigned ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJS latest ) ( NN edition ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ weekly ) ( NNP Ekonomicheskaya ) ( NNP Gazeta ) ) ) ) ) ) ) ) ) ( NP-SBJ ( JJ Soviet ) ( NNS sources ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-2 ( DT the ) ( NN article ) ) ( VP ( VBD was ) ( VP ( VBN written ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Leonid ) ( NNP Abalkin ) ) ( CC and ) ( NP ( NP ( DT a ) ( JJ small ) ( NN group ) ) ( PP ( IN of ) ( NP ( NNS colleagues ) ) ) ) ) ) ) ) ) ) ) )

Although it was published unsigned in the latest edition of the weekly Ekonomicheskaya Gazeta Soviet sources say the article was written by Leonid Abalkin and a small group of colleagues


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Abalkin ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NP ( NP ( NNP Academy ) ) ( PP ( IN of ) ( NP ( NNP Science ) ) ) ( POS 's ) ) ( NNP Institute ) ) ( PP ( IN of ) ( NP ( NNP Economics ) ) ) ) ) ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN appointed ) ( S ( NP-PRD ( NP ( NP ( NN deputy ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ Soviet ) ( NN government ) ) ) ) ( CC and ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN state ) ( NN commission ) ) ( PP ( IN on ) ( NP ( JJ economic ) ( NN reform ) ) ) ) ) ) ) ) ) ) )

Mr. Abalkin head of the Academy of Science 's Institute of Economics was recently appointed deputy chairman of the Soviet government and head of a state commission on economic reform


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( ADVP ( RB clearly ) ) ( NP-PRD ( NP ( DT a ) ( NN manifesto ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ next ) ( NN stage ) ) ( PP ( IN of ) ( NP ( FW perestroika ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( CD one ) ( NN analyst ) ) )

It 's clearly a manifesto for the next stage of perestroika said one analyst


( S ( NP-SBJ ( NP ( DT The ) ( JJ economic ) ( NNS ideas ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN document ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( ADJP ( RB much ) ( JJR bolder ) ) ( PP ( IN than ) ( NP ( JJ current ) ( NNS policies ) ) ) ) ) )

The economic ideas in the document are much bolder than current policies


( S ( PP ( IN For ) ( NP ( NN example ) ) ) ( NP-SBJ ( NP ( NP ( DT the ) ( VBN proposed ) ( NN overhaul ) ) ( PP ( IN of ) ( NP ( NNS prices ) ) ) ) ( PRN ( NP ( DT an ) ( ADJP ( RB extremely ) ( JJ sensitive ) ) ( JJ political ) ( NN topic ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RB far ) ( RBR more ) ( JJ precise ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ vague ) ( NNS plans ) ) ( VP ( VP ( VBN announced ) ( PP ( IN by ) ( NP-LGS ( NNP Mr. ) ( NNP Gorbachev ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB later ) ) ( VBD dropped ) ) ) ) ) ) ) )

For example the proposed overhaul of prices an extremely sensitive political topic is far more precise than the vague plans announced by Mr. Gorbachev in 1987 and later dropped


( S ( CC But ) ( NP-SBJ ( DT the ) ( NNS proposals ) ) ( ADVP ( RB also ) ) ( VP ( VBP display ) ( NP ( JJ political ) ( NN savvy ) ) ( S-ADV ( VP ( VBG couching ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ controversial ) ) ( NNS ideas ) ) ) ) ( PP-CLR ( IN in ) ( NP ( JJ cautious ) ( NN language ) ) ) ( SBAR-PRP ( RB so ) ( RB as ) ( RB not ) ( S ( VP ( TO to ) ( VP ( VB alienate ) ( NP ( NP ( JJ powerful ) ( NNS conservatives ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN government ) ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP stand ) ( S ( VP ( TO to ) ( VP ( VB lose ) ( PRT ( RP out ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBN implemented ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But the proposals also display political savvy couching some of the most controversial ideas in cautious language so as not to alienate powerful conservatives in the government who stand to lose out if they are implemented


( S ( S-ADV ( VP ( VBG Seeking ) ( NP ( NP ( DT a ) ( JJ middle ) ( NN path ) ) ( PP ( IN between ) ( NP ( NP ( NP ( NNS opponents ) ) ( PP ( IN of ) ( NP ( NN change ) ) ) ) ( CC and ) ( NP ( NP ( NNS radicals ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP demand ) ( NP ( JJ overnight ) ( NNS solutions ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-3 ( DT the ) ( NN article ) ) ( VP ( VBZ advocates ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ calls ) ( S ( NP-PRD ( DT a ) ( JJ radical-moderate ) ( NN approach ) ) ) ) ) ) ) )

Seeking a middle path between opponents of change and radicals who demand overnight solutions the article advocates what it calls a radical-moderate approach


( S ( NP-SBJ-2 ( DT The ) ( NN document ) ) ( VP ( VP ( VBZ is ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN discussed ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( NN conference ) ) ( PP ( IN of ) ( NP ( JJ leading ) ( NNS economists ) ) ) ) ) ( NP-TMP ( RB late ) ( DT this ) ( NN month ) ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( ADVP ( RB probably ) ) ( VP ( VB be ) ( VP ( VBN presented ) ( PP-DIR ( TO to ) ( NP ( DT the ) ( NNP Soviet ) ( NNP Parliament ) ) ) ( PP-CLR ( IN for ) ( NP ( NN consideration ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) ) ) )

The document is to be discussed at a conference of leading economists late this month and will probably be presented to the Soviet Parliament for consideration this year


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( NNS policy-makers ) ) ( VP ( VBP draw ) ( PRT ( RP up ) ) ( NP ( NP ( NNS proposals ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ next ) ( JJ five-year ) ( NN plan ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ starts ) ( PP-TMP ( IN in ) ( NP ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN blueprint ) ) ( VP ( VBZ represents ) ( NP ( NP ( DT a ) ( JJ powerful ) ( JJ first ) ( NN shot ) ) ( PP ( IN in ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( JJ fierce ) ( NN battle ) ) ( PP ( IN over ) ( NP ( JJ economic ) ( NN reform ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

As policy-makers draw up proposals for the next five-year plan which starts in 1991 the blueprint represents a powerful first shot in what is likely to be a fierce battle over economic reform


( S ( NP-SBJ ( DT The ) ( NNS authors ) ) ( VP ( VP ( VBP make ) ( NP ( NP ( DT a ) ( JJ gloomy ) ( NN assessment ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ( CC and ) ( VP ( VBP concede ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ quick ) ( CC and ) ( JJ easy ) ( NNS paths ) ) ( PP ( TO to ) ( NP ( NN success ) ) ) ) ( ADVP ( RB simply ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB exist ) ) ) ) ) ) ) )

The authors make a gloomy assessment of the economy and concede that quick and easy paths to success simply do n't exist


( S ( ADVP ( RB Instead ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP map ) ( PRT ( RP out ) ) ( NP ( NP ( DT a ) ( NN strategy ) ) ( PP ( IN in ) ( NP ( JJ several ) ( NNS phases ) ) ) ) ( PP-TMP ( PP ( IN from ) ( NP ( RB now ) ) ) ( PP ( IN until ) ( NP ( CD 1995 ) ) ) ) ) )

Instead they map out a strategy in several phases from now until 1995


( S ( NP-SBJ-1 ( NP ( JJS Most ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS measures ) ) ) ) ( VP ( MD would ) ( ADVP ( RB probably ) ) ( VP ( ADVP ( RB only ) ) ( VB start ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( DT an ) ( NN effect ) ) ( PP-CLR ( IN on ) ( NP ( JJ beleaguered ) ( JJ Soviet ) ( NNS consumers ) ) ) ( PP-TMP ( IN in ) ( NP ( QP ( CD two ) ( TO to ) ( CD three ) ) ( NNS years ) ) ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( JJS earliest ) ) ) ) ) ) ) ) )

Most of the measures would probably only start to have an effect on beleaguered Soviet consumers in two to three years at the earliest


( S ( NP-SBJ ( NP ( DT The ) ( JJ key ) ( NNS steps ) ) ( VP ( VBN advocated ) ) ) ( VP ( VBP include ) ( NP ( NN PROPERTY ) ) ) )

The key steps advocated include PROPERTY


( S ( NP-SBJ-1 ( NP ( JJ Rigid ) ( JJ ideological ) ( NNS restrictions ) ) ( PP-LOC ( IN on ) ( NP ( NN property ) ( NN ownership ) ) ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN abandoned ) ) ) ) )

Rigid ideological restrictions on property ownership should be abandoned


( S ( NP-SBJ-1 ( DT The ) ( NN document ) ) ( VP ( VBZ proposes ) ( S ( VP ( VP ( VBG breaking ) ( PRT ( RP up ) ) ( NP ( NP ( DT the ) ( JJ monolithic ) ( NN system ) ) ( PP ( IN of ) ( NP ( JJ state-owned ) ( NNS enterprises ) ( CC and ) ( NNS farms ) ) ) ) ) ( CC and ) ( VP ( VBG allowing ) ( S ( NP-SBJ-2 ( DT a ) ( JJ big ) ( JJ private ) ( NN sector ) ) ( VP ( TO to ) ( VP ( VB flourish ) ( S-ADV ( VP ( VBN helped ) ( PP ( IN by ) ( NP-LGS ( JJ tough ) ( JJ anti-monopoly ) ( NN legislation ) ) ) ) ) ) ) ) ) ) ) ) )

The document proposes breaking up the monolithic system of state-owned enterprises and farms and allowing a big private sector to flourish helped by tough anti-monopoly legislation


( S ( NP-SBJ-2 ( DT The ) ( NN economy ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN thrown ) ( ADJP-CLR ( JJ open ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( JJ numerous ) ( NNS types ) ) ( PP ( IN of ) ( NP ( NN ownership ) ) ) ) ) ) ( PP-TMP ( IN between ) ( NP ( RB now ) ( CC and ) ( CD 1992 ) ) ) ( PP-3 ( VBG including ) ( NP ( NP ( NNS factories ) ) ( VP ( VP ( VBN leased ) ( PP ( IN by ) ( NP-LGS ( NNS workers ) ) ) ) ( CC or ) ( VP ( VBN owned ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS shareholders ) ) ( NP ( NNS cooperatives ) ) ( CC and ) ( NP ( JJ joint ) ( NNS ventures ) ) ) ) ) ) ) ) ) ) ) )

The economy would be thrown open to numerous types of ownership between now and 1992 including factories leased by workers or owned by shareholders cooperatives and joint ventures


( S ( NP-SBJ-1 ( NP ( DT Some ) ( NNS forms ) ) ( PP ( IN of ) ( NP ( JJ private ) ( NN property ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN sanctioned ) ) ) ) )

Some forms of private property would be sanctioned


( S ( NP-SBJ ( JJ Such ) ( NNS moves ) ) ( VP ( MD would ) ( VP ( ADVP-MNR ( RB greatly ) ) ( VB reduce ) ( NP ( NP ( DT the ) ( NN power ) ) ( PP ( IN of ) ( NP ( NP ( NN government ) ( NNS ministries ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP-TMP ( RB now ) ) ( VP ( VP ( ADVP-MNR ( RB jealously ) ) ( VBP guard ) ( NP ( PRP$ their ) ( NN turf ) ) ) ( CC and ) ( VP ( VBP are ) ( VP ( VBN seen ) ( PP-CLR ( IN as ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ major ) ( NNS obstacles ) ) ( VP ( VBG blocking ) ( NP ( JJ economic ) ( NN reform ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Such moves would greatly reduce the power of government ministries who now jealously guard their turf and are seen as one of the major obstacles blocking economic reform


FINANCES


( S ( NP-SBJ-1 ( NN Emergency ) ( NNS measures ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN introduced ) ( S-PRP ( VP ( TO to ) ( VP ( VB ease ) ( NP ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJ financial ) ( NN crisis ) ) ( NP ( ADVP ( RB notably ) ) ( PRP$ its ) ( ADJP ( QP ( CD 200 ) ( CD billion ) ) ) ( NN budget ) ( NN deficit ) ) ) ) ) ) ) ) ) )

Emergency measures would be introduced to ease the country 's financial crisis notably its 200 billion budget deficit


( S ( PP-TMP ( IN By ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( JJ next ) ( NN year ) ) ) ) ) ( NP-SBJ-2 ( DT all ) ( JJ loss-making ) ( NN state ) ( NNS enterprises ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VP ( VBN put ) ( PP-PUT ( IN out ) ( PP ( IN of ) ( NP ( NN business ) ) ) ) ) ( CC or ) ( VP ( VBN handed ) ( PRT ( RP over ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS workers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD would ) ( VP ( VP ( VB buy ) ( CC or ) ( VB lease ) ( NP ( PRP them ) ) ) ( CC or ) ( VP ( VB turn ) ( NP ( PRP them ) ) ( PP-CLR ( IN into ) ( NP ( NNS cooperatives ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

By the end of next year all loss-making state enterprises would be put out of business or handed over to workers who would buy or lease them or turn them into cooperatives


( S ( NP-SBJ-1 ( JJ Similar ) ( NNS steps ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN taken ) ( S-PRP ( VP ( TO to ) ( VP ( VB liquidate ) ( NP ( JJ unprofitable ) ( UCP ( NN state ) ( CC and ) ( JJ collective ) ) ( NNS farms ) ) ( PP-TMP ( IN by ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) )

Similar steps would be taken to liquidate unprofitable state and collective farms by the end of 1991


( S ( NP-SBJ-1 ( NP ( DT A ) ( JJ unified ) ( NN system ) ) ( PP ( IN of ) ( NP ( NN taxation ) ) ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN introduced ) ( ADVP-MNR ( RB rapidly ) ) ) ) ) )

A unified system of taxation should be introduced rapidly


( S ( S-PRP ( VP ( TO To ) ( VP ( VB mop ) ( PRT ( RP up ) ) ( NP ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( QP ( CD 300 ) ( CD billion ) ) ( NNS rubles ) ) ( PP ( IN in ) ( NP ( NN circulation ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN government ) ) ( VP ( MD should ) ( VP ( VB encourage ) ( NP ( NN home ) ( NN ownership ) ) ( PP ( VBG including ) ( S-NOM ( VP ( VBG issuing ) ( NP ( NP ( NNS bonds ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP guarantee ) ( NP ( NNS holders ) ) ( NP ( DT the ) ( NN right ) ( S ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( DT an ) ( NN apartment ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

To mop up some of the 300 billion rubles in circulation the government should encourage home ownership including issuing bonds that guarantee holders the right to purchase an apartment


LABOR


( S ( NP-SBJ ( NP ( DT A ) ( JJ genuine ) ( NN market ) ) ( PP ( IN for ) ( NP ( NN labor ) ( CC and ) ( NNS wages ) ) ) ) ( VP ( MD would ) ( VP ( VB replace ) ( NP ( DT the ) ( JJ present ) ( JJ rigid ) ( JJ centralized ) ( NN system ) ) ) ) )

A genuine market for labor and wages would replace the present rigid centralized system


( S ( S-ADV ( VP ( VBG Departing ) ( PP ( IN from ) ( NP ( NP ( NNS decades ) ) ( PP ( IN of ) ( NP ( JJ Soviet ) ( NN dogma ) ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ new ) ( NN system ) ) ( VP ( MD would ) ( VP ( VB lead ) ( PP-CLR ( PP ( TO to ) ( NP ( NP ( JJ big ) ( NNS differences ) ) ( PP-LOC ( IN in ) ( NP ( NN pay ) ) ) ( PP ( IN between ) ( NP ( NNS workers ) ) ) ) ) ( CC and ) ( PP ( ADVP ( RB almost ) ( RB certainly ) ) ( TO to ) ( NP ( NN unemployment ) ) ) ) ) ) )

Departing from decades of Soviet dogma the new system would lead to big differences in pay between workers and almost certainly to unemployment


( S ( S-PRP ( VP ( TO To ) ( VP ( VB cushion ) ( NP ( DT the ) ( NNS blows ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( MD would ) ( VP ( VB introduce ) ( NP ( NP ( DT a ) ( NN minimum ) ( NN wage ) ) ( CC and ) ( NP ( NN unemployment ) ( NNS benefits ) ) ) ) ) )

To cushion the blows the government would introduce a minimum wage and unemployment benefits


PRICES


( S ( S ( NP-SBJ-1 ( NP ( DT The ) ( JJ entire ) ( NN system ) ) ( PP ( IN of ) ( NP ( ADJP ( RB centrally ) ( VBN set ) ) ( NNS prices ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP-2 ( VBN overhauled ) ) ) ) ) ( CC and ) ( S ( NP-SBJ=1 ( NN free-market ) ( NNS prices ) ) ( VP=2 ( VBN introduced ) ) ) ( PP ( IN for ) ( NP ( NP ( JJS most ) ( JJ wholesale ) ( NN trade ) ) ( CC and ) ( NP ( DT some ) ( JJ retail ) ( NN trade ) ) ) ) )

The entire system of centrally set prices would be overhauled and free-market prices introduced for most wholesale trade and some retail trade


( S ( S ( NP-SBJ-2 ( NNS Consumers ) ) ( VP ( MD would ) ( ADVP-TMP ( RB still ) ) ( VP ( VB be ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( DT some ) ( NN food ) ( CC and ) ( NN household ) ( NNS goods ) ) ( PP-MNR ( IN at ) ( NP ( JJ subsidized ) ( NNS prices ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( NP ( NN luxury ) ( CC and ) ( VBN imported ) ( NNS items ) ) ( PP ( VBG including ) ( NP ( NN food ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN sold ) ( PP-MNR ( IN at ) ( NP ( NN market ) ( NNS prices ) ) ) ) ) ) ) )

Consumers would still be able to buy some food and household goods at subsidized prices but luxury and imported items including food would be sold at market prices


( S ( NP-SBJ-1 ( JJ Wholesale ) ( NNS prices ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN divided ) ( PP-CLR ( IN into ) ( NP ( NP ( CD three ) ( NNS categories ) ) ( NP ( NP ( NP ( JJ raw ) ( NNS materials ) ) ( VP ( VBN sold ) ( PP-MNR ( IN at ) ( NP ( NP ( VBN fixed ) ( NNS prices ) ) ( ADJP ( RB close ) ( PP ( TO to ) ( NP ( NN world ) ( NNS levels ) ) ) ) ) ) ) ) ( NP ( NP ( VBN government-set ) ( NN procurement ) ( NNS prices ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ small ) ( NN number ) ) ( PP ( IN of ) ( NP ( JJ key ) ( NNS products ) ) ) ) ) ) ( CC and ) ( NP ( NP ( JJ free ) ( NNS prices ) ) ( PP ( IN for ) ( NP ( NN everything ) ( RB else ) ) ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN determined ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS contracts ) ) ( PP ( IN between ) ( NP ( NNS suppliers ) ( CC and ) ( NNS purchasers ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Wholesale prices would be divided into three categories raw materials sold at fixed prices close to world levels government-set procurement prices for a small number of key products and free prices for everything else to be determined by contracts between suppliers and purchasers


( S ( NP-SBJ ( VBN Inflation-adjusted ) ( JJ social ) ( NNS benefits ) ) ( VP ( MD would ) ( VP ( VB ensure ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( JJ poor ) ( CC and ) ( JJ elderly ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB suffer ) ( ADVP-MNR ( RB unduly ) ) ) ) ) ) ) ) )

Inflation-adjusted social benefits would ensure that the poor and elderly do n't suffer unduly


FOREIGN TRADE


( S ( NP-SBJ-1 ( NP ( DT The ) ( JJ current ) ( NN liberalization ) ( CC and ) ( NN decentralization ) ) ( PP ( IN of ) ( NP ( JJ foreign ) ( NN trade ) ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN taken ) ( ADVP ( RB much ) ( RBR further ) ) ) ) ) )

The current liberalization and decentralization of foreign trade would be taken much further


( S ( NP-SBJ ( JJ Soviet ) ( NNS companies ) ) ( VP ( VP ( MD would ) ( VP ( VB face ) ( NP ( NP ( JJR fewer ) ( NNS obstacles ) ) ( PP ( IN for ) ( NP ( NNS exports ) ) ) ) ) ) ( CC and ) ( VP ( MD could ) ( VP ( ADVP ( RB even ) ) ( VB invest ) ( NP ( PRP$ their ) ( JJ hard ) ( NN currency ) ) ( ADVP-LOC-CLR ( RB abroad ) ) ) ) ) )

Soviet companies would face fewer obstacles for exports and could even invest their hard currency abroad


( S ( NP-SBJ ( NNS Foreigners ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( JJR greater ) ( NNS incentives ) ( S ( VP ( TO to ) ( VP ( VB invest ) ( PP-LOC-CLR ( IN in ) ( NP ( DT the ) ( NNP U.S.S.R. ) ) ) ) ) ) ) ) ) )

Foreigners would receive greater incentives to invest in the U.S.S.R.


( S ( PP-LOC ( RB Alongside ) ( NP ( DT the ) ( JJ current ) ( JJ non-convertible ) ( NN ruble ) ) ) ( NP-SBJ-3 ( NP ( DT a ) ( JJ second ) ( NN currency ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN introduced ) ( SBAR-2 ( WHNP-1 ( DT that ) ) ( S ( VP ( MD could ) ( VP ( VB be ) ( VP ( ADVP-MNR ( RB freely ) ) ( VBN exchanged ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS dollars ) ) ( CC and ) ( NP ( JJ other ) ( JJ Western ) ( NNS currencies ) ) ) ) ) ) ) ) ) ) ) ) )

Alongside the current non-convertible ruble a second currency would be introduced that could be freely exchanged for dollars and other Western currencies


( S ( NP-SBJ-1 ( DT A ) ( JJ domestic ) ( JJ foreign ) ( NN exchange ) ( NN market ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN set ) ( PRT ( RP up ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN overhaul ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( NN banking ) ( NN system ) ) ) ) ) ) ) ) ) ) )

A domestic foreign exchange market would be set up as part of an overhaul of the nation 's banking system


( S ( NP-SBJ ( DT The ) ( NN blueprint ) ) ( VP ( VBZ is ) ( PP-PRD ( IN at ) ( NP ( PRP$ its ) ( JJS vaguest ) ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( VP ( VBG referring ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN fate ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( CD two ) ( JJ powerful ) ( JJ economic ) ( NNS institutions ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP seem ) ( ADVP ( RB likely ) ( S ( VP ( TO to ) ( VP ( VB oppose ) ( NP ( JJ such ) ( JJ sweeping ) ( NNS plans ) ) ) ) ) ) ) ) ) ) ( NP ( NP ( NP ( DT the ) ( NNP State ) ( NNP Planning ) ( NNP Committee ) ) ( VP ( VBN known ) ( PP-CLR ( IN as ) ( NP ( NNP Gosplan ) ) ) ) ) ( CC and ) ( NP ( NP ( NP ( DT the ) ( NNP State ) ( NNP Committee ) ) ( PP ( IN for ) ( NP ( NNP Material ) ( NNP Supply ) ) ) ) ( CC or ) ( NP ( NNP Gossnab ) ) ) ) ) ) ) ) ) ) ) ) )

The blueprint is at its vaguest when referring to the fate of the two powerful economic institutions that seem likely to oppose such sweeping plans the State Planning Committee known as Gosplan and the State Committee for Material Supply or Gossnab


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ hints ) ( ADVP-MNR ( RB strongly ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT both ) ( NNS organizations ) ) ( VP ( MD would ) ( VP ( ADVP ( RB increasingly ) ) ( VB lose ) ( NP ( PRP$ their ) ( NN clout ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS changes ) ) ( NP ( ADVP ( RB particularly ) ) ( NP ( NP ( DT the ) ( NN introduction ) ) ( PP ( IN of ) ( NP ( JJ wholesale ) ( NN trade ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN breakup ) ) ( PP ( IN of ) ( NP ( NN state ) ( NNS monopolies ) ) ) ) ) ) ( VP ( VBP take ) ( NP-CLR ( NN effect ) ) ) ) ) ) ) ) ) ) )

But it hints strongly that both organizations would increasingly lose their clout as the changes particularly the introduction of wholesale trade and the breakup of state monopolies take effect


( S ( S-TPC-2 ( NP-SBJ-1 ( NP ( NNP Dime ) ( NNPS Savings ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ( VP ( VBD was ) ( VP ( VBN cleared ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP Federal ) ( NNP Deposit ) ( NNP Insurance ) ( NNP Corp. ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NNP Starpointe ) ( NNPS Savings ) ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NP ( NNP Somerset ) ) ( NP ( NNP N.J. ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS banks ) ) ( VP ( VBD said ) ) )

Dime Savings Bank of New York was cleared by the Federal Deposit Insurance Corp. to acquire Starpointe Savings Bank of Somerset N.J. the banks said


( S ( NP-SBJ ( NP ( NNP Starpointe ) ( NNS holders ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD approved ) ( NP ( DT the ) ( NN plan ) ) ( NP-TMP ( JJ last ) ( NNP April ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB receive ) ( NP ( NP ( NP ( CD 21 ) ) ( PP ( IN in ) ( NP ( NN cash ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( CC or ) ( NP ( DT a ) ( QP ( JJ total ) ( CD 63 ) ( CD million ) ) ) ) ) ) )

Starpointe holders who approved the plan last April will receive 21 in cash a share or a total 63 million


( S ( S ( NP-SBJ ( DT The ) ( NNP FDIC ) ) ( VP ( VBD cleared ) ( NP ( DT the ) ( NN move ) ) ( NP-TMP ( NN yesterday ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( DT the ) ( NNS banks ) ) ( VP ( MD must ) ( VP ( VB wait ) ( NP-TMP ( QP ( IN at ) ( JJS least ) ( CD 30 ) ) ( NNS days ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG closing ) ( NP ( DT the ) ( NN purchase ) ) ) ) ) ) ) ) )

The FDIC cleared the move yesterday and the banks must wait at least 30 days before closing the purchase


( S ( NP-SBJ-1 ( DT A ) ( NN closing ) ( NN date ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN been ) ( VP ( VBN set ) ) ) ) )

A closing date has n't been set


( S ( S-TPC-2 ( NP-SBJ ( DT The ) ( NNP U.S. ) ( NN economy ) ) ( VP ( VBD grew ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( JJ moderate ) ( ADJP ( CD 2.5 ) ( NN % ) ) ( JJ annual ) ( NN rate ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( NP-1 ( NP ( DT the ) ( JJ same ) ( NN pace ) ) ( PP ( IN as ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ( PP ( IN despite ) ( NP ( NP ( DT the ) ( JJS worst ) ( NN trade ) ( NN performance ) ) ( PP-TMP ( IN in ) ( NP ( CD six ) ( NNS years ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP Commerce ) ( NNP Department ) ) ( VP ( VBD reported ) ) )

The U.S. economy grew at a moderate 2.5 % annual rate in the third quarter the same pace as the second quarter despite the worst trade performance in six years the Commerce Department reported


( S ( NP-SBJ ( NP ( JJ Personal ) ( NN spending ) ) ( VP ( VBN buoyed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN burst ) ) ( PP ( IN of ) ( NP ( NN automobile ) ( NN buying ) ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJ main ) ( NN catalyst ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN economy ) ( POS 's ) ) ( NN expansion ) ) ) ) ) )

Personal spending buoyed by a burst of automobile buying was the main catalyst to the economy 's expansion


( S ( CC But ) ( NP-SBJ ( NP ( NN trade ) ) ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NN economy ) ( POS 's ) ) ( JJ main ) ( NNS forces ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( JJ few ) ( NNS years ) ) ) ) ) ) ) ( VP ( VBD showed ) ( NP ( DT a ) ( JJ sharp ) ( NN deterioration ) ) ) )

But trade one of the economy 's main forces in the past few years showed a sharp deterioration


( S ( NP-SBJ ( NP ( NNS Imports ) ) ( PP ( IN of ) ( NP ( NNS goods ) ( CC and ) ( NNS services ) ) ) ) ( VP ( VBD soared ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNS exports ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ flat ) ) ) ) ) ) )

Imports of goods and services soared while exports were flat


( S ( NP-SBJ ( DT Some ) ( NNS economists ) ) ( VP ( VBD found ) ( S ( NP-SBJ ( DT the ) ( NN mixture ) ) ( ADJP-PRD ( JJ ominous ) ) ) ) )

Some economists found the mixture ominous


( S ( PP-TMP ( IN For ) ( NP ( DT the ) ( JJ past ) ( CD two ) ( NNS years ) ) ) ( NP-SBJ ( DT the ) ( JJ foreign ) ( NN trade ) ( NN sector ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT a ) ( JJ major ) ( NN contributor ) ) ( PP ( TO to ) ( NP ( JJ economic ) ( NN growth ) ) ) ) ) ) )

For the past two years the foreign trade sector has been a major contributor to economic growth


( SINV ( S-TPC-1 ( NP-SBJ ( PRP You ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB rely ) ( ADVP-TMP ( RB now ) ) ( PP-CLR ( ADVP ( RB solely ) ) ( IN on ) ( NP-2 ( NN consumer ) ( NN spending ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB sustain ) ( NP ( DT the ) ( NN economy ) ) ( PP-LOC ( IN on ) ( NP ( DT a ) ( JJ solid ) ( NN growth ) ( NN path ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Norman ) ( NNP Robertson ) ) ( NP ( NP ( JJ chief ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Mellon ) ( NNP Bank ) ) ( PP-LOC ( IN in ) ( NP ( NNP Pittsburgh ) ) ) ) ) ) ) )

You ca n't rely now solely on consumer spending to sustain the economy on a solid growth path said Norman Robertson chief economist at Mellon Bank in Pittsburgh


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBD showed ) ( NP ( NP ( DT no ) ( NN change ) ) ( PP ( IN of ) ( NP ( NN pace ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ) ) ) ( NP-SBJ ( JJ many ) ( NNS analysts ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( TO to ) ( VP ( VB slow ) ( ADVP-EXT ( RB considerably ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NP ( NN demand ) ) ( PP ( IN for ) ( NP ( NNS autos ) ) ) ) ( VP ( VBZ falls ) ( PP-PRP ( ADVP ( RB partly ) ) ( IN because ) ( IN of ) ( NP ( NP ( JJR higher ) ( NNS prices ) ) ( PP ( IN on ) ( NP ( NP ( NNS models ) ) ( VP ( VBN introduced ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Although the economy showed no change of pace from the second quarter many analysts expect it to slow considerably in the fourth quarter as demand for autos falls partly because of higher prices on models introduced last month


( S ( NP-SBJ ( JJ Many ) ( NNS economists ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN rise ) ) ( PP ( IN in ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NN dollar ) ) ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ( VP ( MD will ) ( VP ( ADVP ( RBR further ) ) ( VB crimp ) ( NP ( NP ( NN progress ) ) ( PP-LOC ( IN in ) ( NP ( NN trade ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ makes ) ( S ( S ( NP-SBJ ( NNS exports ) ) ( ADJP-PRD ( RBR more ) ( RB expensive ) ) ) ( CC and ) ( S ( NP-SBJ ( VBZ imports ) ) ( ADJP-PRD ( RBR cheaper ) ) ) ) ) ) ) ) ) ) ) ) )

Many economists think the rise in the value of the U.S. dollar this year will further crimp progress in trade because it makes exports more expensive and imports cheaper


( S ( CC And ) ( NP-SBJ-2 ( NP ( NN business ) ( NN investment ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD slowed ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( NN report ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ sluggish ) ) ) ) ) ) ) ) ) ) )

And business investment which slowed in the third quarter according to yesterday 's report is expected to continue to be sluggish


( S ( NP-SBJ ( NP ( DT A ) ( JJ sharp ) ( NN reduction ) ) ( PP ( IN in ) ( NP ( NN inflation ) ) ) ) ( VP ( VBD was ) ( ADVP-EXT ( IN by ) ( RB far ) ) ( NP-PRD ( NP ( DT the ) ( JJS brightest ) ( NN spot ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN report ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( JJ real ) ( JJ gross ) ( JJ national ) ( NN product ) ) ( NP ( NP ( DT the ) ( JJ inflation-adjusted ) ( NN market ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( PDT all ) ( DT the ) ( NNS goods ) ( CC and ) ( NNS services ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBD produced ) ) ) ) ) ) ) ) ) ) ) ) ) )

A sharp reduction in inflation was by far the brightest spot in the report on the real gross national product the inflation-adjusted market value of all the goods and services the economy produced


( S ( NP-SBJ ( NP ( DT An ) ( NN inflation ) ( NN gauge ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ measures ) ( NP ( NP ( DT the ) ( JJ quarterly ) ( NN change ) ) ( PP ( IN in ) ( NP ( NP ( NNS prices ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN array ) ) ( PP ( IN of ) ( NP ( NNS goods ) ( CC and ) ( NNS services ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD slowed ) ( NP ( PRP$ its ) ( NN growth ) ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( ADJP ( CD 2.9 ) ( NN % ) ) ( JJ annual ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 5 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN second ) ) ) ) ) )

An inflation gauge that measures the quarterly change in prices of an array of goods and services slowed its growth to a 2.9 % annual rate in the third quarter from 5 % in the second


( S ( S-TPC-2 ( NP-SBJ ( NP ( RB Much ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN moderation ) ) ) ) ( VP ( VBD came ) ( PP-CLR ( IN from ) ( NP ( NP ( VBG declining ) ( NN energy ) ( NNS prices ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP have ) ( ADVP-TMP ( IN since ) ) ( VP ( VBN turned ) ( PRT ( RP up ) ) ( NP-EXT ( DT a ) ( RB bit ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD said ) ) )

Much of the moderation came from declining energy prices which have since turned up a bit analysts said


( S ( ADVP ( RB Consequently ) ) ( NP-SBJ ( NP ( NNP Michael ) ( NNP Darby ) ) ( NP ( NP ( NN undersecretary ) ) ( PP ( IN for ) ( NP ( JJ economic ) ( NNS affairs ) ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NNP Commerce ) ( NNP Department ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN inflation ) ) ( ADVP ( RB probably ) ) ( VP ( MD will ) ( VP ( VB edge ) ( ADVP ( RB up ) ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( JJ third-quarter ) ( NN rate ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ final ) ( CD three ) ( NNS months ) ) ( PP ( IN of ) ( NP ( CD 1989 ) ) ) ) ) ) ) ) ) ) )

Consequently Michael Darby undersecretary for economic affairs at the Commerce Department said inflation probably will edge up from the third-quarter rate in the final three months of 1989


( S ( CC But ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ-1 ( NP ( DT the ) ( JJ second ) ( NN quarter ) ( POS 's ) ) ( CD 5 ) ( NN % ) ( NN rate ) ) ( VP ( MD will ) ( VP ( VB prove ) ( S ( VP ( TO to ) ( VP ( VB have ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT this ) ( NN year ) ( POS 's ) ) ( JJ peak ) ( JJ quarterly ) ( NN inflation ) ( NN rate ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But he said he believes the second quarter 's 5 % rate will prove to have been this year 's peak quarterly inflation rate


( S ( ADVP ( RB Generally ) ) ( NP-SBJ ( DT the ) ( NNP Bush ) ( NN administration ) ) ( VP ( VBD expressed ) ( NP ( NP ( NN satisfaction ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN economy ) ( POS 's ) ) ( NN progress ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ heads ) ( PP-CLR ( IN into ) ( NP ( NP ( PRP$ its ) ( JJ eighth ) ( NN year ) ) ( PP ( IN of ) ( NP ( JJ sustained ) ( NN growth ) ) ) ) ) ( PP-TMP ( IN next ) ( NP ( NN month ) ) ) ) ) ) ) )

Generally the Bush administration expressed satisfaction with the economy 's progress as it heads into its eighth year of sustained growth next month


( S ( NP-SBJ ( NNP Treasury ) ( NNP Secretary ) ( NNP Nicholas ) ( NNP Brady ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( DT the ) ( CD 2.5 ) ( NN % ) ( NN pace ) ) ( NP-PRD ( ADJP ( JJ good ) ( JJ solid ) ) ( NN growth ) ) ) ( SBAR-ADV ( IN although ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( DT the ) ( NN expansion ) ) ( VP ( TO to ) ( VP ( VB slow ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) ) )

Treasury Secretary Nicholas Brady called the 2.5 % pace good solid growth although he said he expects the expansion to slow in the fourth quarter


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD added ) ( S ( S ( NP-SBJ ( NN Inflation ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJR lower ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( NNS people ) ) ( VP ( VBD expected ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( TO to ) ( VP ( VB be ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( IN that ) ) ( VP ( VBZ 's ) ( NP-PRD ( JJ good ) ( NN news ) ) ) ) ) ) ) ) ) )

He added Inflation is lower than I think people expected it to be and I think that 's good news


( S ( CC But ) ( NP-SBJ ( NN administration ) ( NNS officials ) ) ( VP ( VBD were ) ( ADJP-PRD ( VBN concerned ) ( PP ( IN over ) ( NP ( NP ( DT the ) ( JJ bleak ) ( NN trade ) ( NN report ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD showed ) ( S ( NP-SBJ ( NP ( DT the ) ( NN deficit ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( NN trade ) ) ( PP ( IN of ) ( NP ( NNS goods ) ( CC and ) ( NNS services ) ) ) ) ) ) ( VP ( VBG swelling ) ( PP-DIR ( TO to ) ( NP ( DT a ) ( ADJP ( QP ( CD 74 ) ( CD billion ) ) ) ( JJ annual ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ( PP-DIR ( IN from ) ( NP ( DT a ) ( ADJP ( QP ( CD 51 ) ( CD billion ) ) ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) ) )

But administration officials were concerned over the bleak trade report which showed the deficit in the country 's trade of goods and services swelling to a 74 billion annual rate in the third quarter from a 51 billion rate in the second quarter


( S ( NP-SBJ ( NNP Mr. ) ( NNP Darby ) ) ( VP ( VP ( VBD called ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( DT a ) ( NN disappointment ) ) ) ) ( CC but ) ( VP ( VBD predicted ) ( SBAR ( S ( NP-SBJ ( NNS exports ) ) ( VP ( MD will ) ( VP ( VB pick ) ( ADVP ( RB up ) ) ( ADVP-TMP ( RB again ) ) ) ) ) ) ) ) )

Mr. Darby called it a disappointment but predicted exports will pick up again


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unprepared ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN deterioration ) ) ( PP-LOC ( IN in ) ( NP ( JJ net ) ( NNS exports ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Daniel ) ( NNP Van ) ( NNP Dyke ) ) ( NP ( NP ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NN forecasting ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( NNP Bank ) ) ( PP ( IN of ) ( NP ( NNP America ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP San ) ( NNP Francisco ) ) ) ) ) ) ) )

We were unprepared for the deterioration in net exports said Daniel Van Dyke vice president of U.S. forecasting at Bank of America in San Francisco


( S ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB believe ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB continue ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( PRP he ) ) ( VP ( VBD added ) ( S ( VP ( VBG noting ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( NP ( DT the ) ( NNS economies ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( JJ major ) ( NN trading ) ( NNS partners ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ strong ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNS prices ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NNS products ) ) ) ) ( VP ( VBP are ) ( ADVP ( RB still ) ) ( ADJP-PRD ( JJ competitive ) ) ) ) ) ) ) ) ) )

I ca n't believe it will continue he added noting that the economies of the country 's major trading partners are strong and prices of U.S. products are still competitive


( S ( NP-SBJ-1 ( DT Some ) ( NNS analysts ) ) ( ADVP ( RB also ) ) ( VP ( VBD were ) ( VP ( VBN disturbed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN pickup ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN growth ) ) ( PP ( IN of ) ( NP ( NN business ) ( NNS inventories ) ) ) ) ) ) ) ) ) )

Some analysts also were disturbed by a pickup in the growth of business inventories


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( NP ( DT a ) ( NN buildup ) ) ( PP ( IN of ) ( NP ( DT these ) ( NNS stocks ) ) ) ) ( VP ( VBZ adds ) ( PP-CLR ( TO to ) ( NP ( NNP GNP ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD can ) ( VP ( VB hurt ) ( NP ( DT the ) ( NN economy ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NP ( DT a ) ( NN pileup ) ) ( PP ( IN of ) ( NP ( JJ unsold ) ( NNS goods ) ) ) ) ( VP ( MD can ) ( VP ( VB lead ) ( PP-CLR ( TO to ) ( NP ( NP ( NN production ) ( NNS cuts ) ) ( CC and ) ( NP ( NNS layoffs ) ) ) ) ) ) ) ) ) ) )

While a buildup of these stocks adds to GNP it can hurt the economy because a pileup of unsold goods can lead to production cuts and layoffs


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( DT the ) ( NN report ) ) ) ) ( NP-SBJ ( NP ( NNS inventories ) ) ( PP-LOC ( IN outside ) ( NP ( DT the ) ( NN farm ) ( NN sector ) ) ) ) ( VP ( VBD grew ) ( PP-CLR ( IN at ) ( NP ( NP ( DT an ) ( JJ annual ) ( NN rate ) ) ( PP ( IN of ) ( NP ( QP ( CD 24.6 ) ( CD billion ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( ADVP-CLR ( RB up ) ( PP ( IN from ) ( NP ( DT a ) ( ADJP ( QP ( CD 19.5 ) ( CD billion ) ) ) ( NN pace ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ) ) )

According to the report inventories outside the farm sector grew at an annual rate of 24.6 billion in the third quarter up from a 19.5 billion pace in the second quarter


( S ( NP-SBJ ( NP ( NNS Manufacturers ) ( POS ' ) ) ( NNS stocks ) ) ( VP ( VBD fattened ) ( PP-CLR ( IN at ) ( NP ( DT an ) ( ADJP ( QP ( CD 18.4 ) ( CD billion ) ) ) ( JJ annual ) ( NN rate ) ) ) ( ADVP-CLR ( RB up ) ( PP ( IN from ) ( NP ( QP ( CD 8.3 ) ( CD billion ) ) ) ) ) ) )

Manufacturers ' stocks fattened at an 18.4 billion annual rate up from 8.3 billion


( SINV ( S-TPC-1 ( NP-SBJ ( DT That ) ) ( VP ( VBZ suggests ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( ADJP ( RB little ) ( JJR more ) ) ( NN inventory ) ( NN overhang ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT some ) ( NNS people ) ) ( VP ( VBD expected ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Edward ) ( NNP Boss ) ) ( NP ( NP ( JJ senior ) ( JJ financial ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Continental ) ( NNP Bank ) ) ( PP-LOC ( IN in ) ( NP ( NNP Chicago ) ) ) ) ) ) ) )

That suggests there is a little more inventory overhang than some people expected said Edward Boss senior financial economist at Continental Bank in Chicago


( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( NN anything ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ 's ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB cause ) ( NP ( NP ( DT a ) ( NN downturn ) ) ( PP-LOC ( IN in ) ( NP ( JJ economic ) ( NN activity ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

I do n't think it 's anything that 's going to cause a downturn in economic activity


( S ( CC But ) ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB slow ) ( NP ( NN production ) ) ) ) )

But it will slow production


( S ( S ( S-TPC-2 ( NP-SBJ ( NP ( NN Devastation ) ) ( PP ( IN from ) ( NP ( NP ( NNP Hurricane ) ( NNP Hugo ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD slammed ) ( PP-CLR ( IN into ) ( NP ( DT the ) ( NNP Southeast ) ( NN coast ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ late ) ( NNP September ) ) ) ) ) ) ) ) ) ( VP ( VBD diminished ) ( NP ( JJ personal ) ( NN income ) ) ( PP-EXT ( IN by ) ( NP ( QP ( IN about ) ( CD 4 ) ( CD billion ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN department ) ) ( VP ( VBD said ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( NP ( DT the ) ( NN effect ) ) ( PP ( IN on ) ( NP ( DT the ) ( ADJP ( QP ( RB roughly ) ( CD 5 ) ( CD trillion ) ) ) ( NN economy ) ) ) ) ( ADJP-PRD ( JJ negligible ) ) ) ) ) )

Devastation from Hurricane Hugo which slammed into the Southeast coast in late September diminished personal income by about 4 billion the department said but it called the effect on the roughly 5 trillion economy negligible


( S ( PP ( IN Except ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN loss ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN hurricane ) ) ) ) ) ) ( NP-SBJ-1 ( PDT all ) ( DT the ) ( NNS figures ) ) ( VP ( VBD were ) ( VP ( VBN adjusted ) ( PP-CLR ( IN for ) ( NP ( NP ( JJ seasonal ) ( NNS factors ) ) ( CC and ) ( NP ( NN inflation ) ) ) ) ) ) )

Except for the loss from the hurricane all the figures were adjusted for seasonal factors and inflation


( SINV ( NP-LOC-TPC-PRD-1 ( RB Here ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( DT some ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ major ) ( NNS components ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ gross ) ( JJ national ) ( NN product ) ) ) ) ) ( VP ( VBN expressed ) ( PP-LOC ( IN in ) ( NP ( ADJP ( RB seasonally ) ( JJ adjusted ) ) ( JJ annual ) ( NNS rates ) ) ) ( PP-CLR ( IN in ) ( NP ( NP ( NNS billions ) ) ( PP ( IN of ) ( NP ( JJ constant ) ( PRN ( CD 1982 ) ) ( NNS dollars ) ) ) ) ) ) ) )

Here are some of the major components of the gross national product expressed in seasonally adjusted annual rates in billions of constant 1982 dollars


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( NP-SBJ ( DT the ) ( JJ implicit ) ( NN price ) ( NN deflator ) ) ( VP ( VBD fell ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 2.9 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 1982 ) ( NN average ) ) ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 4.6 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ previous ) ( NN quarter ) ) ) ) ) )

In the third quarter the implicit price deflator fell to 2.9 % of the 1982 average from 4.6 % in the previous quarter


( S ( NP-SBJ ( NP ( NNP Hudson ) ( POS 's ) ) ( NNP Bay ) ( NNP Co. ) ) ( VP ( VBD announced ) ( NP ( NP ( NNS terms ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( ADJP ( RB previously ) ( VBN proposed ) ) ( NNS rights ) ( NN issue ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( NP ( QP ( IN about ) ( CD 396 ) ( CD million ) ) ( JJ Canadian ) ( NNS dollars ) ) ( PRN ( NP ( QP ( CD 337 ) ( CD million ) ) ) ) ) ( NP-ADV ( NN net ) ) ( PP ( IN of ) ( NP ( NNS expenses ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Hudson 's Bay Co. announced terms of a previously proposed rights issue that is expected to raise about 396 million Canadian dollars 337 million net of expenses


( S ( S-TPC-3 ( NP-SBJ-1 ( NP ( NNS Proceeds ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN offering ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( S ( VP ( TO to ) ( VP ( VB redeem ) ( NP ( NP ( QP ( CD 264 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ preferred ) ( NNS shares ) ) ) ) ) ) ) ( CC and ) ( S ( VP ( TO to ) ( VP ( VB reduce ) ( NP ( JJ short-term ) ( NN debt ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

Proceeds of the offering will be used to redeem 264 million of preferred shares and to reduce short-term debt the company said


( S ( NP-SBJ ( NP ( NNP Canada ) ( POS 's ) ) ( JJS largest ) ( NN department ) ( NN store ) ( NN operator ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNS rights ) ( NN offering ) ) ( VP ( MD will ) ( VP ( VB entitle ) ( S ( NP-SBJ ( NP ( NNS holders ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ ordinary ) ( NNS shares ) ) ) ( PP ( IN except ) ( NP ( NP ( NNS residents ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP U.S. ) ) ( CC and ) ( NP ( NNP Britain ) ) ) ) ) ) ) ( VP ( TO to ) ( VP ( VB subscribe ) ( PP-CLR ( IN for ) ( NP ( NP ( CD two ) ( JJ additional ) ( NNS shares ) ) ( PP ( IN for ) ( NP ( NP ( DT every ) ( CD five ) ( NNS shares ) ) ( VP ( VBN held ) ) ) ) ) ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( CD 31.25 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Canada 's largest department store operator said the rights offering will entitle holders of its ordinary shares except residents in the U.S. and Britain to subscribe for two additional shares for every five shares held at a price of 31.25 a share


( S ( NP-SBJ ( DT The ) ( NN record ) ( NN date ) ) ( VP ( VBZ is ) ( NP-PRD ( NNP Nov. ) ( CD 9 ) ) ) )

The record date is Nov. 9


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ has ) ( NP ( NP ( QP ( IN about ) ( CD 31 ) ( CD million ) ) ( JJ ordinary ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) )

The company has about 31 million ordinary shares outstanding


( S ( PP-LOC ( IN On ) ( NP ( DT the ) ( NNP Toronto ) ( NNP Stock ) ( NNP Exchange ) ) ) ( NP-SBJ ( NP ( NNP Hudson ) ( POS 's ) ) ( NNP Bay ) ( NNS shares ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 35 ) ) ) ( ADVP-CLR ( RB up ) ( NP ( CD 12.5 ) ( NNS cents ) ) ) ) )

On the Toronto Stock Exchange Hudson 's Bay shares closed at 35 up 12.5 cents


( S ( NP-SBJ ( NP ( NNP Hudson ) ( POS 's ) ) ( NNP Bay ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNP Woodbridge ) ( NNP Co. ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( ADVP-TMP ( RB currently ) ) ( VBZ holds ) ( NP ( NP ( QP ( IN about ) ( CD 77 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ ordinary ) ( NNS shares ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB subscribe ) ( PP-CLR ( PP ( IN for ) ( NP ( NP ( PDT all ) ( DT the ) ( NNS shares ) ) ( SBAR ( WHPP-4 ( TO to ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN entitled ) ) ) ) ) ) ) ( CC and ) ( PP ( IN for ) ( NP ( NP ( DT any ) ( NNS shares ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBP are ) ( RB n't ) ( VP ( ADVP ( RB otherwise ) ) ( VBN taken ) ( PP ( RP up ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Hudson 's Bay said that Woodbridge Co. which currently holds about 77 % of the ordinary shares will subscribe for all the shares to which it is entitled and for any shares that are n't otherwise taken up


( S ( NP-SBJ ( NNP Woodbridge ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( VBG holding ) ( NN company ) ) ( VP ( VBN owned ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Toronto ) ( POS 's ) ) ( NNP Thomson ) ( NN family ) ) ) ) ) ) )

Woodbridge is a holding company owned by Toronto 's Thomson family


( S ( NP-SBJ ( NP ( NNP Hudson ) ( POS 's ) ) ( NN Bay ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB redeem ) ( NP ( QP ( CD 9.5 ) ( CD million ) ) ( NN Series ) ( NNP H ) ( JJ preferred ) ( NNS shares ) ) ( PP-TMP ( IN on ) ( NP ( NNP Oct. ) ( CD 31 ) ) ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( PP ( IN of ) ( NP ( NP ( CD 27.75 ) ) ( NP-ADV ( DT each ) ) ) ) ) ) ) ) ) ) ) )

Hudson 's Bay said it will redeem 9.5 million Series H preferred shares on Oct. 31 at a price of 27.75 each


( S ( NP-SBJ-1 ( DT The ) ( NN move ) ) ( VP ( VBD was ) ( VP ( VBN approved ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( JJ special ) ( NNS shareholders ) ( POS ' ) ) ( NN meeting ) ) ) ( NP-TMP ( NN yesterday ) ) ) ) )

The move was approved at a special shareholders ' meeting yesterday


( S ( NP-SBJ ( NP ( NNP Gary ) ( NNP Lukassen ) ) ( NP ( JJ chief ) ( JJ financial ) ( NN officer ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NN redemption ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ preferred ) ( NNS shares ) ) ( VP ( ADVP-TMP ( RB originally ) ) ( VBN issued ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 25 ) ) ( NP-ADV ( DT each ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB eliminate ) ( NP ( NP ( NN dividend ) ( NNS payments ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 17.9 ) ( CD million ) ) ) ( ADVP-TMP ( RB annually ) ) ) ) ) ) ) ) ) ) )

Gary Lukassen chief financial officer said redemption of the preferred shares originally issued at 25 each will eliminate dividend payments of 17.9 million annually


( NP-HLN ( NP ( NNP CRESTMONT ) ( NNP FEDERAL ) ( NNPS SAVINGS ) ( CC & ) ( NNP LOAN ) ( NNP ASSOCIATION ) ) ( PRN ( NP-LOC ( NP ( NNP Edison ) ) ( NP ( NNP N.J. ) ) ) ) )

CRESTMONT FEDERAL SAVINGS & LOAN ASSOCIATION Edison N.J.


( S ( NP-SBJ-1 ( NP ( NNP Lawrence ) ( NNP B. ) ( NNP Seidman ) ) ( NP ( CD 41 ) ( NNS years ) ( JJ old ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT this ) ( NNS savings ) ( CC and ) ( NN loan ) ( NN institution ) ) ) ) ) ) ) )

Lawrence B. Seidman 41 years old was named chairman of this savings and loan institution


( S ( NP-SBJ ( PRP He ) ) ( VP ( MD will ) ( VP ( VB succeed ) ( NP ( NP ( NNP Charles ) ( NNP L. ) ( NNP Harrington ) ) ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( JJ chief ) ( NN executive ) ( NN officer ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD retired ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ) ) ) ) ) )

He will succeed Charles L. Harrington chairman and chief executive officer who retired last month


( S ( NP-SBJ ( NNP Crestmont ) ) ( VP ( VBZ is ) ( VP ( VBG conducting ) ( NP ( NP ( DT a ) ( NN search ) ) ( PP ( IN for ) ( NP ( DT a ) ( JJ chief ) ( NN executive ) ) ) ) ) ) )

Crestmont is conducting a search for a chief executive


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Seidman ) ) ( NP ( NP ( DT a ) ( NN director ) ) ( PP ( IN of ) ( NP ( NNP Crestmont ) ) ) ( PP-TMP ( IN since ) ( NP ( NNP July ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( JJ general ) ( NN partner ) ) ( PP ( IN of ) ( NP ( NP ( NNP Seidman ) ( NNP Financial ) ( NNPS Associates ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ owns ) ( NP ( NP ( CD 9.89 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP Crestmont ) ) ) ) ) ) ) ) ) ) ) )

Mr. Seidman a director of Crestmont since July is general partner of Seidman Financial Associates which owns 9.89 % of Crestmont


( S ( NP-SBJ ( NNP Treasury ) ( NNP Secretary ) ( NNP Nicholas ) ( NNP Brady ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Congress ) ) ( VP ( MD should ) ( VP ( VB grant ) ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ( NP ( DT the ) ( NN power ) ( S ( VP ( TO to ) ( VP ( VB close ) ( NP ( DT the ) ( NN stock ) ( NNS markets ) ) ( PP-TMP ( IN in ) ( NP ( NP ( NNS periods ) ) ( PP ( IN of ) ( NP ( NN crisis ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Treasury Secretary Nicholas Brady said that Congress should grant the Securities and Exchange Commission the power to close the stock markets in periods of crisis


( S ( PP-LOC ( IN In ) ( NP ( NP ( NN testimony ) ) ( PP ( TO to ) ( NP ( DT the ) ( NNP Senate ) ( NNS securities ) ( NN subcommittee ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD disputed ) ( NP ( NP ( DT the ) ( NN view ) ) ( PP ( IN of ) ( NP ( NP ( NNP SEC ) ( NNP Chairman ) ( NNP Richard ) ( NNP Breeden ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD told ) ( NP ( DT a ) ( NNP House ) ( NN panel ) ) ( NP-TMP ( NNP Wednesday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB want ) ( NP ( DT the ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB halt ) ( NP ( DT the ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In testimony to the Senate securities subcommittee Mr. Brady disputed the view of SEC Chairman Richard Breeden who told a House panel Wednesday that he does n't want the ability to halt the markets


( S ( NP-SBJ ( NNP Mr. ) ( NNP Breeden ) ) ( VP ( VBD contended ) ( SBAR ( DT that ) ( S ( NP-SBJ ( JJ discretionary ) ( NN power ) ) ( VP ( MD could ) ( VP ( VB have ) ( NP ( DT an ) ( NN impact ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NNS markets ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ-2 ( NP ( NNS rumors ) ) ) ( VP ( VBD were ) ( S ( VP ( TO to ) ( VP ( VB circulate ) ) ) ) ( PP-4 ( IN about ) ( SBAR-NOM ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-1 ( DT the ) ( NNS exchanges ) ) ( VP ( MD might ) ( VP ( VB be ) ( VP ( VBN closed ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Breeden contended that discretionary power could have an impact on the markets if rumors were to circulate about when the exchanges might be closed


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN president ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( NP ( DT the ) ( NN power ) ( S ( VP ( TO to ) ( VP ( VB close ) ( NP ( DT the ) ( NNS markets ) ) ( PP-TMP ( IN in ) ( NP ( DT an ) ( NN emergency ) ) ) ) ) ) ) ) ) ) ) )

He added that the president already has the power to close the markets in an emergency


( S ( CC But ) ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD argued ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP SEC ) ) ( VP ( VBZ is ) ( UCP-PRD-LOC ( ADJP ( JJR closer ) ( PP ( TO to ) ( NP ( DT the ) ( NNS markets ) ) ) ) ( CC and ) ( PP ( IN in ) ( NP ( NP ( DT a ) ( JJR better ) ( NN position ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB understand ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NNS exchanges ) ) ( VP ( VBP are ) ( PP-LOC-PRD ( IN under ) ( NP ( JJ such ) ( NN stress ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN closed ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But Mr. Brady argued that the SEC is closer to the markets and in a better position to understand when the exchanges are under such stress that they should be closed


( S ( ADVP-MNR ( RB Separately ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD asked ) ( NP-1 ( NP ( DT the ) ( NNP Working ) ( NNP Group ) ) ( PP ( IN on ) ( NP ( NNP Financial ) ( NNPS Markets ) ) ) ) ( S ( VP ( TO to ) ( VP ( VB determine ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNS futures ) ( NNS margins ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB too ) ( JJ low ) ) ) ) ) ) ) ) ) ) ) ) )

Separately Mr. Brady said he asked the Working Group on Financial Markets to determine whether futures margins are too low


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD noted ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT some ) ( NN minimum ) ( NN margin ) ( NNS requirements ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN reduced ) ( PP-CLR ( TO to ) ( NP ( NP ( NNS levels ) ) ( PP-LOC ( IN below ) ( NP ( NP ( DT those ) ) ( PP-TMP ( IN before ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) ) ) ) ) ) ) )

He noted that some minimum margin requirements have been reduced to levels below those before the 1987 crash


( S ( S-TPC-1 ( NP-SBJ ( DT This ) ) ( VP ( VBZ raises ) ( NP ( NNS questions ) ( SBAR ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNS futures ) ( CC and ) ( NN equity ) ( NN margin ) ( NNS requirements ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ consistent ) ) ( PP-LOC ( IN at ) ( NP ( DT these ) ( NNS levels ) ) ) ) ) ) ( CC and ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNS futures ) ( NNS margins ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ adequate ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD said ) ) )

This raises questions whether futures and equity margin requirements are consistent at these levels and whether futures margins are adequate Mr. Brady said


( S ( NP-SBJ ( NNS Margins ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NN money ) ) ) ( SBAR ( S ( NP-SBJ-2 ( DT an ) ( NN investor ) ) ( VP ( VBZ needs ) ( S ( VP ( TO to ) ( VP ( VB put ) ( PRT ( RB up ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB buy ) ( CC or ) ( VB sell ) ( NP ( DT a ) ( NNS futures ) ( NN contract ) ) ) ) ) ) ) ) ) ) )

Margins are the amount of money an investor needs to put up to buy or sell a futures contract


( S ( NP-SBJ-1 ( NP ( NNS Margins ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNS futures ) ( NNS exchanges ) ) ) ) ( ADVP ( RB typically ) ) ( VP ( VBP are ) ( VP ( VBN raised ) ( CC and ) ( VBN lowered ) ( PP-MNR ( VBG according ) ( PP ( TO to ) ( NP ( NN market ) ( NN volatility ) ) ) ) ) ) )

Margins on the futures exchanges typically are raised and lowered according to market volatility


( S ( S ( NP-SBJ ( NP ( DT The ) ( NNP Chicago ) ( NNP Mercantile ) ( NNP Exchange ) ( NNS margins ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( CD 500 ) ( NN stock-index ) ( NNS futures ) ) ) ) ( VP ( VBD stood ) ( PP-LOC-CLR ( IN at ) ( NP ( NP ( NP ( CD 10,000 ) ) ( NP-ADV ( DT a ) ( NN contract ) ) ( PP ( IN for ) ( NP ( NNS speculators ) ) ) ) ( CC and ) ( NP ( NP ( CD 5,000 ) ) ( PP ( IN for ) ( NP ( NNS hedgers ) ) ) ) ) ) ( PP-TMP ( IN before ) ( NP ( NNP Oct. ) ( CD 16 ) ( CD 1987 ) ) ) ) ) ( S ( NP-TMP ( DT that ) ( NN day ) ) ( NP-SBJ-1 ( DT the ) ( VBG hedging ) ( NN margin ) ) ( VP ( VBD was ) ( VP ( VBN raised ) ( PP-DIR ( TO to ) ( NP ( CD 7,500 ) ) ) ) ) ) )

The Chicago Mercantile Exchange margins for the Standard & Poor 's 500 stock-index futures stood at 10,000 a contract for speculators and 5,000 for hedgers before Oct. 16 1987 that day the hedging margin was raised to 7,500


( S ( NP-SBJ-1 ( NNS Margins ) ) ( VP ( VBD were ) ( VP ( VBN raised ) ( CC or ) ( VBN lowered ) ( NP-EXT ( QP ( IN about ) ( DT a ) ( NN dozen ) ) ( NNS times ) ) ( PP-TMP ( IN since ) ( NP ( NP ( DT the ) ( NN crash ) ) ( NP-TMP ( NNP Oct. ) ( CD 19 ) ( CD 1987 ) ) ) ) ) ) )

Margins were raised or lowered about a dozen times since the crash Oct. 19 1987


( S ( ADVP-TMP ( RB Currently ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP stand ) ( PP-CLR-LOC ( IN at ) ( NP ( NP ( NP ( CD 12,000 ) ) ( PP ( IN for ) ( NP ( NP ( NNS speculators ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP are ) ( ADVP ( RB typically ) ) ( NP-PRD ( NP ( NNS individuals ) ) ( CC and ) ( NP ( NN non-member ) ( NNS traders ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( CD 6,000 ) ) ( PP ( IN for ) ( NP ( NP ( NNS hedgers ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VP ( VBP are ) ( ADVP ( RB usually ) ) ( NP-PRD ( NNS institutions ) ) ) ( CC and ) ( VP ( VBP have ) ( NP ( NP ( VBG offsetting ) ( NNS positions ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( VBG underlying ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Currently they stand at 12,000 for speculators who are typically individuals and non-member traders and 6,000 for hedgers which are usually institutions and have offsetting positions in the underlying stocks


( S ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( DT the ) ( JJ leveraged ) ( NN buy-out ) ( NN phenomenon ) ) ( VP ( TO to ) ( VP ( VB end ) ( PP-LOC ( IN under ) ( NP ( PRN ( PRP$ its ) ) ( JJ own ) ( NN weight ) ) ) ) ) ) ) ) ) ) )

Mr. Brady also said he expects the leveraged buy-out phenomenon to end under its own weight


( S ( S-ADV ( VP ( VBN Asked ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN anything ) ) ( SBAR ( S ( NP-SBJ-4 ( NNP Congress ) ) ( VP ( MD should ) ( VP ( VB do ) ( S-PRP ( VP ( TO to ) ( VP ( VB curb ) ( NP ( DT the ) ( NN LBO ) ( NN boom ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD responded ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN LBO ) ( NN phenomenon ) ) ( SBAR-ADV ( PRN ( IN while ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB stop ) ( ADVP-MNR ( RB completely ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN thing ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN past ) ) ) ) ) ) ) ) ) ) ) )

Asked whether there is anything Congress should do to curb the LBO boom Mr. Brady responded I think the LBO phenomenon while it wo n't stop completely will be a thing of the past


( S ( PP-TMP ( IN Before ) ( S-NOM ( VP ( VBG taking ) ( NP ( DT any ) ( NN action ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD advised ) ( NP-2 ( DT the ) ( NN panel ) ) ( S ( VP ( TO to ) ( VP ( VB see ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ has ) ( VP ( VBN produced ) ( PP ( IN as ) ( NP ( DT a ) ( NN cure ) ) ) ) ) ) ) ) ) ) ) )

Before taking any action he advised the panel to see what the market has produced as a cure


( S ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( ADVP ( RB also ) ) ( VP ( VP ( VBD agreed ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( NNS senators ) ( POS ' ) ) ( NNS concerns ) ) ( PP ( IN about ) ( NP ( JJ recent ) ( NN stock-market ) ( NN volatility ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ realizes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNS gyrations ) ) ( VP ( VBP are ) ( VP ( VBG scaring ) ( NP-1 ( NNS investors ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG investing ) ( PP-CLR ( IN in ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Brady also agreed with senators ' concerns about recent stock-market volatility and said he realizes that the gyrations are scaring investors from investing in stocks


( S ( CC But ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS individuals ) ) ( ADVP-TMP ( RB still ) ) ( VP ( VBP are ) ( VP ( VBG participating ) ( PP-CLR ( IN in ) ( NP ( DT the ) ( NN equity ) ( NN market ) ) ) ( ADVP-MNR ( RB indirectly ) ) ( PP-MNR ( IN through ) ( NP ( NP ( JJ mutual ) ( NNS funds ) ) ( CC and ) ( NP ( NN pension ) ( NNS funds ) ) ) ) ) ) ) ) ) )

But he added that individuals still are participating in the equity market indirectly through mutual funds and pension funds


( S ( NP-SBJ-2 ( DT The ) ( JJ former ) ( NNP Wall ) ( NNP Street ) ( NN executive ) ) ( VP ( VBD refused ) ( S ( VP ( TO to ) ( VP ( VB offer ) ( NP ( NP ( DT an ) ( NN opinion ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN controversy ) ) ( VP ( VBG surrounding ) ( NP ( NP ( NN program ) ( NN trading ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBZ has ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN become ) ( NP-PRD ( NP ( DT a ) ( JJR larger ) ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN trading ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN blamed ) ( PP-CLR ( IN for ) ( S-NOM ( VP ( VBG accelerating ) ( NP ( DT the ) ( NN drop ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS weeks ) ) ( RB ago ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The former Wall Street executive refused to offer an opinion on the controversy surrounding program trading which has recently become a larger part of the trading in the market and has been blamed for accelerating the drop two weeks ago


( S ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP do ) ( RB not ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( NN view ) ) ( PP ( IN of ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD should ) ( VP ( VB do ) ( NP ( NN anything ) ) ( PP-CLR ( IN about ) ( NP ( NN program ) ( NN trading ) ) ) ( PP-TMP ( IN at ) ( NP ( DT this ) ( NN time ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

I do not have a view of whether we should do anything about program trading at this time he said


( S ( CC But ) ( NP-SBJ ( NNP Mr. ) ( NNP Brady ) ) ( VP ( VBD endorsed ) ( NP ( NP ( DT the ) ( NN market-revision ) ( NN bill ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ-2 ( NP ( DT both ) ( NNS houses ) ) ( PP ( IN of ) ( NP ( NNP Congress ) ) ) ) ( VP ( MD will ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB push ) ( ADVP-CLR ( RB through ) ) ( NP-TMP ( DT this ) ( NN session ) ) ) ) ) ) ) ) ) ) ) )

But Mr. Brady endorsed the market-revision bill that both houses of Congress will try to push through this session


( S ( NP-SBJ ( NP ( DT That ) ( NN bill ) ) ( VP ( VBN proposed ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP SEC ) ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ( VP ( MD would ) ( VP ( VP ( VB require ) ( S ( NP-SBJ ( NN brokerage ) ( NNS firms ) ) ( VP ( TO to ) ( VP ( VB disclose ) ( NP ( NP ( DT the ) ( JJ financial ) ( NNS positions ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( VBG holding ) ( NNS companies ) ) ) ) ) ) ) ) ( VP ( VB mandate ) ( NP ( NP ( NP ( JJ large ) ( NNS traders ) ( POS ' ) ) ( NN reporting ) ) ( PP ( IN of ) ( NP ( NN program ) ( CC or ) ( NN block ) ( NNS trades ) ) ) ) ) ( CC and ) ( VP ( VB improve ) ( NP ( NP ( VBG clearing ) ( CC and ) ( NN settlement ) ) ( PP ( IN of ) ( NP ( NP ( NNS trades ) ) ( PP-LOC ( IN between ) ( NP ( DT the ) ( NNS futures ) ( CC and ) ( NN stock ) ( NNS markets ) ) ) ) ) ) ) ) ) )

That bill proposed by the SEC last year would require brokerage firms to disclose the financial positions of their holding companies mandate large traders ' reporting of program or block trades and improve clearing and settlement of trades between the futures and stock markets


( S ( NP-SBJ ( DT The ) ( NN bill ) ) ( ADVP ( RB also ) ) ( VP ( MD would ) ( VP ( VB give ) ( NP ( DT the ) ( NNP SEC ) ) ( NP ( NP ( DT the ) ( NN power ) ( S ( VP ( TO to ) ( VP ( VB close ) ( NP ( DT the ) ( NNS markets ) ) ) ) ) ) ( NP ( NP ( DT a ) ( NN discretion ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( S ( NP-SBJ ( JJ former ) ( NNP SEC ) ( NNP Chairman ) ( NNP David ) ( NNP Ruder ) ) ( VP ( VBD wanted ) ) ) ( CC but ) ( S ( NP-SBJ ( NNP Mr. ) ( NNP Breeden ) ) ( VP ( VBZ does ) ( RB n't ) ) ) ) ) ) ) ) ) )

The bill also would give the SEC the power to close the markets a discretion that former SEC Chairman David Ruder wanted but Mr. Breeden does n't


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Brady ) ) ( CC and ) ( NP ( NNS senators ) ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB have ) ( S ( NP-SBJ-2 ( PRP$ their ) ( NNS staffs ) ) ( VP ( VB meet ) ( PP-TMP ( IN within ) ( NP ( DT the ) ( JJ next ) ( NN week ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB start ) ( S ( VP ( VB fine-tuning ) ( NP ( DT the ) ( NN bill ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Brady and senators agreed to have their staffs meet within the next week to start fine-tuning the bill


( S ( NP-SBJ ( NP ( DT The ) ( NN surprise ) ( NNS resignations ) ) ( PP ( IN of ) ( NP ( CD two ) ( JJ top ) ( JJ economic ) ( NN government ) ( NNS officials ) ) ) ) ( VP ( VBD heaped ) ( NP ( JJR more ) ( NN uncertainty ) ) ( PP-CLR ( IN on ) ( NP ( NP ( NP ( NNP London ) ( POS 's ) ) ( JJ financial ) ( NNS markets ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB already ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG laboring ) ( PP-CLR ( IN under ) ( NP ( NP ( NNS worries ) ) ( PP ( IN about ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( VBG ailing ) ( NN economy ) ) ) ) ) ) ) ) ) ) ) ) ) )

The surprise resignations of two top economic government officials heaped more uncertainty on London 's financial markets which already have been laboring under worries about Britain 's ailing economy


( SINV ( S-TPC-3 ( NP-SBJ ( NP ( DT The ) ( JJ last ) ( NN thing ) ) ( SBAR ( S ( NP-SBJ ( NNS markets ) ) ( VP ( VBP like ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NN uncertainty ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Ian ) ( NNP Harwood ) ) ( NP ( NP ( JJ chief ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP S.G. ) ( NNP Warburg ) ( CC & ) ( NNP Co. ) ) ) ) ) ( PP-CLR-1 ( IN of ) ( NP ( NP ( DT the ) ( NNS resignations ) ) ( PP ( IN of ) ( NP ( NP ( NAC ( NNP Chancellor ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Exchequer ) ) ) ) ( NNP Nigel ) ( NNP Lawson ) ) ( CC and ) ( NP ( JJ chief ) ( JJ economic ) ( NN adviser ) ( NNP Sir ) ( NNP Alan ) ( NNP Walters ) ) ) ) ) ) )

The last thing markets like is uncertainty said Ian Harwood chief economist at S.G. Warburg & Co. of the resignations of Chancellor of the Exchequer Nigel Lawson and chief economic adviser Sir Alan Walters


( S ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD 'll ) ( VP ( VB see ) ( S ( NP-SBJ ( NN share ) ( NNS prices ) ) ( VP ( VB go ) ( ADVP ( RP down ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN sterling ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ is ) ( PP-PRD ( IN under ) ( NP ( NP ( NN something ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN cloud ) ) ) ) ) ) ) )

I think you 'll see share prices go down and sterling now is under something of a cloud


( S ( NP-SBJ-2 ( DT The ) ( NN pound ) ) ( ADVP-TMP ( RB immediately ) ) ( VP ( VBD began ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( DT a ) ( NN buffetting ) ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-1 ( DT the ) ( NNS resignations ) ) ( VP ( VBD were ) ( VP ( VBN announced ) ) ) ) ) ) )

The pound immediately began to take a buffetting after the resignations were announced


( S ( PP-LOC ( IN In ) ( NP ( JJ late ) ( NNP New ) ( NNP York ) ( NN trading ) ) ) ( NP-SBJ ( NN sterling ) ) ( VP ( VBD stood ) ( PP-LOC ( IN at ) ( NP ( CD 1.5765 ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( CD 1.6145 ) ) ( NP-TMP ( JJ late ) ( NNP Wednesday ) ) ) ) ) )

In late New York trading sterling stood at 1.5765 down from 1.6145 late Wednesday


( S ( NP-SBJ ( DT The ) ( JJ British ) ( NN economy ) ) ( VP ( VBZ is ) ( ADVP ( RB hardly ) ) ( NP-PRD ( NP ( DT the ) ( NN picture ) ) ( PP ( IN of ) ( NP ( NN health ) ) ) ) ( NP-TMP ( DT these ) ( NNS days ) ) ) )

The British economy is hardly the picture of health these days


( S ( S ( S-ADV ( PP-PRD ( IN At ) ( NP ( CD 15 ) ( NN % ) ) ) ) ( NP-SBJ-1 ( NN base ) ( NN interest ) ( NNS rates ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJS highest ) ) ( PP-TMP ( IN in ) ( NP ( CD eight ) ( NNS years ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( CD 7.6 ) ( NN % ) ( JJ annual ) ( NN inflation ) ( NN rate ) ) ( VP ( VBZ is ) ( PP ( IN by ) ( RB far ) ) ( NP-PRD ( NP ( DT the ) ( JJS highest ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP European ) ( NNP Community ) ) ) ) ) ) )

At 15 % base interest rates are the highest in eight years and the 7.6 % annual inflation rate is by far the highest in the European Community


( S ( NP-SBJ ( NNS Unions ) ) ( VP ( VBP are ) ( VP ( VBG pressing ) ( NP ( NP ( NNS demands ) ) ( PP ( IN for ) ( NP ( NP ( NN wage ) ( NNS increases ) ) ( PP ( IN of ) ( NP ( NP ( JJR more ) ) ( PP ( IN than ) ( NP ( CD 10 ) ( NN % ) ) ) ) ) ) ) ) ( PP ( IN despite ) ( NP ( JJ general ) ( NN belief ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ economic ) ( NN growth ) ) ( NP-TMP ( JJ next ) ( NN year ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( JJR less ) ( PP ( IN than ) ( NP ( CD 2 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) )

Unions are pressing demands for wage increases of more than 10 % despite general belief that economic growth next year will be less than 2 %


( S ( ADVP ( RB Increasingly ) ) ( NP-SBJ ( DT the ) ( JJ financial ) ( NNS markets ) ) ( VP ( VBP are ) ( VP ( VBG reflecting ) ( NP ( DT the ) ( NN gloom ) ) ) ) )

Increasingly the financial markets are reflecting the gloom


( S ( NP-SBJ ( DT The ) ( NNP Financial ) ( NNPS Times ) ( JJ 100-share ) ( NN index ) ) ( VP ( VBZ has ) ( VP ( VBN dropped ) ( NP-ADV ( QP ( IN about ) ( CD 12 ) ) ( NN % ) ) ( PP ( IN from ) ( NP ( NP ( PRP$ its ) ( CD 1989 ) ( NN high ) ) ( PP ( IN of ) ( NP ( CD 2423.9 ) ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Sept. ) ( CD 8 ) ) ) ) ) ) )

The Financial Times 100-share index has dropped about 12 % from its 1989 high of 2423.9 on Sept. 8


( S ( NP-TMP ( NN Yesterday ) ) ( SBAR-TMP ( ADVP ( RB even ) ) ( IN before ) ( S ( NP-SBJ-1 ( DT the ) ( NNS resignations ) ) ( VP ( VBD were ) ( VP ( VBN announced ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN index ) ) ( VP ( VBD dove ) ( NP-ADV ( CD 32.5 ) ( NNS points ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-LOC-CLR ( IN at ) ( NP ( CD 2129.4 ) ) ) ) ) ) ) )

Yesterday even before the resignations were announced the index dove 32.5 points to close at 2129.4


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP are ) ( VP ( VBG expecting ) ( NP ( DT a ) ( NN recession ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Donald ) ( NNP Franklin ) ) ( NP ( NP ( JJ chief ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Schroders ) ( NN investment ) ( NN bank ) ) ) ) ) )

We are expecting a recession says Donald Franklin chief economist at Schroders investment bank


( S ( NP-SBJ ( DT The ) ( JJ only ) ( NN question ) ) ( VP ( VBZ is ) ( SBARQ-PRD ( WHADJP-1 ( WRB how ) ( RB deep ) ) ( SQ ( VBZ is ) ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB be ) ) ) ) ) ) ) ) )

The only question is how deep is it going to be


( S ( NP-SBJ ( NP ( DT The ) ( NN outlook ) ) ( PP ( IN for ) ( NP ( JJ corporate ) ( NNS earnings ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB fairly ) ( JJ bleak ) ) ) )

The outlook for corporate earnings is fairly bleak


( S ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( RB quite ) ( JJ likely ) ) ( SBAR-1 ( S ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB get ) ( NP ( NP ( NNS repeats ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP mid-October ) ( NN market ) ( NNS shocks ) ) ) ) ) ) ) ) ) ) ) ) )

It 's quite likely we 're going to get repeats of the mid-October market shocks


( S ( NP-SBJ-1 ( JJ Red ) ( NN ink ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( VP ( VBN begun ) ( S ( VP ( TO to ) ( VP ( VB flow ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ U.S.-U.K. ) ( NN market ) ( NNS breaks ) ) ( PP ( IN of ) ( NP ( NP ( NNP Oct. ) ( CD 13 ) ) ( CC and ) ( NP ( NNP Oct. ) ( CD 16 ) ) ) ) ) ) ) ) ) ) ) ) ) )

Red ink already has begun to flow in the wake of the U.S.-U.K. market breaks of Oct. 13 and Oct. 16


( S ( NP-SBJ ( NP ( JJ London-based ) ( NNP LIT ) ( NNPS Holdings ) ) ( NP ( NP ( DT the ) ( JJS largest ) ( NN financer ) ) ( PP ( IN of ) ( NP ( NNS traders ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Chicago ) ( NNS options ) ( CC and ) ( NNS futures ) ( NNS markets ) ) ) ) ) ( VP ( VBD said ) ( NP-TMP ( NN yesterday ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB incur ) ( NP ( DT a ) ( JJ second-half ) ( NN loss ) ) ( PP-PRP ( IN as ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN market ) ( NN plunge ) ) ) ) ) ) ) ) ) ) )

London-based LIT Holdings the largest financer of traders in the Chicago options and futures markets said yesterday it will incur a second-half loss as a result of the market plunge


( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB also ) ) ( VP ( MD will ) ( VP ( VB omit ) ( NP ( PRP$ its ) ( JJ second-half ) ( NN dividend ) ) ) ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB specify ) ( NP ( DT the ) ( NN size ) ) ) ) )

The company which also will omit its second-half dividend did n't specify the size


( S ( CC But ) ( NP-SBJ ( NN company ) ( NNS insiders ) ) ( VP ( VBN estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN loss ) ) ( VP ( MD could ) ( VP ( VB approach ) ( NP ( NP ( DT the ) ( NN equivalent ) ) ( PP ( IN of ) ( NP ( QP ( CD 10 ) ( CD million ) ) ) ) ) ) ) ) ) ) )

But company insiders estimated that the loss could approach the equivalent of 10 million