NZ wary of investment

NZ wary of investment

WELLINGTON (AFP): New Zealanders are wary of Asian investment and immigration here, according to a survey by the foreign ministry.

The survey of 600 people found just 29 percent thought immigration to New Zealand by Asians would be good for the country, and only 25 percent thought Asian investment here was good.

Thirty-three percent of people had mixed feelings about Asian migration, 25 percent believed it would be neither good nor bad, and 13 percent said it would be bad for New Zealand.

Almost half those questioned, 46 percent, had mixed feelings on Asian investment, 18 percent opposed it and 11 percent thought it would be neither good nor bad.

However, although people were concerned Asian investment could move ownership and control of businesses overseas, similar attitudes were held towards the United States and other countries 20 years ago, the National Research Bureau, which conducted the survey, said in its conclusion.

Almost four out of five, 78 percent, felt Asian tourism was good for New Zealand and 57 percent favored education institutions attracting fee-paying Asian students.

IDB raises capital

GUADALAJARA, Mexico (AFP): The Inter-American Development Bank (IDB) has approved a capital increase of US$40 billion to finance its lending programs for the countries of Latin American and the Caribbean for the rest of the decade.

The decision was approved by the Committee of the Assembly of Governors of the bank only hours before the formal inauguration here of the bank's 35th annual assembly.

The capital increase includes lending programs of at least $7 billion annually from the ordinary capital of the bank, and $500 million annually in soft loans for the poorest countries of the region.

It will also include a modification of the capital structure of the bank and the addition of two new chairs to its board of directors, one for Japan, and the other for Chile.

China protects car industry

BEIJING (Reuter): Beijing will protect its car industry by banning new car assembly ventures for up to three years and requiring many components to be made in China, the official China Daily said.

The new strategy will in effect disallow Sino-foreign joint ventures that produce cars while encouraging partnerships to make auto parts, the newspaper said.

A top government statistician said last week that private cars, currently the preserve of the wealthy and privileged, will be within reach of ordinary families by 2010.

The policy, apparently adopted by the cabinet, hopes to protect China's 116 car factories by carefully proscribing the investments of the world's dominant carmakers.

Experts will keep close watch over component-making joint ventures planned with General Motors, Ford, Renault, Volvo, Daewoo and Nissan "because such projects can easily be developed into car assembly plants in a short time", the daily said.

UK to enjoy robust growth

LONDON (Reuter): Britain does not need to either cut or raise interest rates at present because the country is set to enjoy a year of robust growth with low inflation, according to a study published here.

The Ernst & Young ITEM Club said in its latest study that British gross domestic product (GDP) would grow by 2.75 percent in 1994, better than the Conservative government's 2.5 percent forecast.

The ITEM Club survey attracts interest because it uses the British Treasury's own economic model for its forecasts -- ITEM standing for Independent Treasury Economic Modeling.

Its upbeat view on the economy means that it sees relative stability on the monetary front in the months ahead.

"The government may make a token interest rate cut to five percent in the face of the response to its tax increases, but ITEM's analysis shows there is no pressing need to cut or raise interest rates," it said.

Base rates are currently at 5.25 percent.

RP to resume ore smelting

MANILA (AFP): Integrated Chrome Corp. (Inchrome), a small Philippine ore refiner, is planning a 105 million-peso (US$3.75 million) rights offering to raise funds to restart its smelting plant, the company said here.

Inchrome president David Arcenas said the reopening of the smelter in the southern island of Mindanao, shut down last year due to an energy crisis and soft metal prices, would take advantage of a projected end to recession in the ferrochrome industry.

The rights offer, comprising 210 million A shares and 140 million B shares, both with a par value of 30 centavos, would be "critical to the successful turnaround of the corporation's financial losses," he said in disclosure papers filed with the official Securities and Exchange Commission.

The company, which produces ferrochromite ore, has been in the red for the past two years.

Arcenas said the company has obtained assurances of adequate power supply from state-run National Power Corp.

Vietnam-Japan flights

HANOI (AFP): Vietnam Airlines is to begin regular flights to Japan but will fly to the new Kansai Airport in Osaka after being refused permission to use Tokyo's crowded Narita Airport, a report said.

Aviation officials from the two countries have agreed to allow three flights weekly between Vietnam and Kansai, a new airport built on a man-made island off Osaka that is scheduled to open in September, the Vietnam Investment Review reported.

Kichisaburo Nomura, executive vice president of All Nippon Airways, told the weekly newspaper that his airline wanted to fly on the route but would organize a sharing arrangement, possibly with Japan Airlines.

Vietnam Airlines will begin flights on the route after September, using new Boeing 767 aircraft, the report said.

Aluminum stocks up

LONDON (AFP): Western world stocks of aluminum in all forms rose by 110,000 tons in February 1994 to 3.726 million tons from 3.616 million tons in January (revised), International Primary Aluminum Institute (IPAI) statistics showed.

They remained much higher than the February 1993 level of 3.372 million tons.

Stocks of unwrought aluminum rose by 71,000 tons to 2.140 million tons from 2.069 million tons in January, markedly higher than the 1.720 million tons level of February 1993.

The former eastern bloc countries, with the exception of Hungary, are not members of the IPAI, nor are China and Cuba.