The Guardian from London, Greater London, England • 1

LEGGE -5LEVER SECURITY' LOCKS Get some real protection from mm Printed in London and Manchester Tuesday July 19 1983 23p 1 Government bows to City over restrictive practices action King rules out immediate public inquiry on Scillies crash tock Exchange off nquiry WAVE POWER Houses in the fishing village of Orani, near Manila, in the Philippines, lie devastated after being hit by a series of huge waves whipped up by typhoon Vera. So far, 85 people have died, many are missing and thousands have been made homeless Divers last night recovered some pieces of the crashed helicopter, but they could not find the main fuselage. The helicopter went down in 200 feet of water. Mr Robert Hughes, a Labour frontbench transport spokesman, called for an inquiry into helicopter safety, saying there had been more than 400 incidents involving the SSI. But Mr King described the helicopter as one of the main workhorses" in the North Sea, with an outstanding safety record.

He said the weekend's incident was the first fatal accident In ten years. He confirmed Mr Hughes's assertion that the helicopter involved in the accident had been in use over the North Sea but it had received its annual certificate of airworthiness two days before flying down to Penzance on June 24. Mr David Harris, the Conservative MP for St Ives, said that despite the accident the public remained completely confident of the safety of the service. It had an excellent safety record, having carried 1.25 million visitors in the last 19 years, with no deaths until Saturday. Mr Harris said there was nothing that could have been done to save more lives in the accident, although only six people survived.

He paid tribute to Matt Lethbridge, the lifeboat coxswain involved in Saturday's rescue operation. While British Airways demonstrated their faith in the S61 yesterday by putting it back into service on the Penzance to St Mary's route, investigations on the Scillies continued, with some of the survivors being Turn to back page, col. 5 By Paul Keel and Colin Brown There will be no immediate public inquiry into the Isles of Scilly helicopter disaster, Tm Vina Ihp Trnnsnnrt Secretary announced the Commons yesteraay wnen concern was expressed about the nrH nf 1hP SikOrskV www 7, S61, the type involved in the accident. Mr King instead referred to the investigation being conducted on the scene by the air accidents investigation branch of his department. He said they were seeking to get as quickly as possible to the truth of the matter and Parliament, page 21 they would be reporting to him.

I don't think a public inquiry would be the proper way to proceed at this stage," Mr King said. In answer to a protest from Mr David Mudd, Conservative MP for Falmouth and Cam-bourne, that the wreckage of the British Airways S61, which plunged into the sea off the Scillies on Saturday with the loss of 20 lives, had not been located until yesterday, Mr King agreed it was a matter that required further examination." It was shortly before noon yesterday that the crew of the Seaforth Clansman, a Royal Navy diving support vessel, reported that they had picked up a signal believed to be from thp hplipnrifpr's ninppr which would have automatically switched on to transmit a bleep on coming into contact with the water. Kissinger takes top post for Reagan US will lift ban on 'harsh' Poland By Hamish McRae, Financial Editor The Government has bowed to pressure from the City and plans to intervene to stop the Office of Fair Trading's case against the restrictive practices of the Stock Exchange. This wilt halt the largest and most expensive investigation aver mounted by the OFT, and comes within weeks of the arrival both of Mr Cecil Parkinson at the Department of Trade and Industry, and of Mr Room Leigh Pemberton as Governor of the Bank of The exchange, which has already spent more than 1 Financial Notebook, page 18 million in legal costs defending its effective monopoly over the trading of British stocks and shares; has campaigned vigorously both publicly and privately to he allowed to manage its own affairs. The case was due to come before the Restrictive Practices Court early next year.

The Government counters recusations that it has 'let its friends off the hook by arguing that it will only stop the case in return for the exchange making concessions on its restrictive practices. A recommendation that the action against the exchange, should never 'have 'been' brought is understood to have been made in the next report from Professor L. C. B. Gower, who made a study of investor protection last year.

The Gower argument is that the judicial procedure of the Restrictive Practices Court is not a suitable place to discuss how the Stock Exchange should be allowed to operate. The Government will already know Professor Gower's views. can use those as an excuse. Tt is not clear just how the Government will stop the case. It could introduce new retrospective legislation which cleared the exchange, excluding it from the requirements of the 1976 Restrictive Trade Practices Act.

It could make an order which would not be retrospective but which would give the exchange the opportunity to commission will be largely political. It is a device designed to rally flagging congressional support behind administration policy in the region. In announcing its formation, Mr Reagan was clearly seeking to influence today's closed debate in the Democrat-controlled House of Representatives, where there is a strong move to cut off undercover aid through the CIA for anti-Sandinista rebels in Nicaragua- President Reagan, addressing the conservative Longshoreman's Union in' Hollywood, Florida, called the Sandinista takeover in Nicaragua the "revolution of broken promises they rejected their pledges to their own people, to the Organisation of American States and the world." In an apparent dig at the Democrats who want to cut off covert aid to the rebels, Mr Reagan said Isn't it time that Pope in Malta row From Alex Brummer in Washington The former secretary of state, Dr Henry Kissinger, has agreed to head the National Commission on Future Policies Towards Central America announced yesterday by President Reagan, White House sources said. Although Dr Kissinger has been informally consulted on foreign policy matters by the Reagan Administration on Leaders outline plan for peace, page 7 several occasions his decision to serve as chairman of the bipartisan commission, will Be his" first important job for government since being removed as secretary of state by the 1976 election. From the administration's point of view the goal of the Dr Kissinger informally consulted several times From Campbell Page in Rome A clash between the Maltese Government and the Vatican now seems inevitable.

Employing the strongest terms they have yet used in a-dispute about Government attempts to take over some Church property, the Archbishop of Malta and the Bishop of Gozo have denounced the Government's most recent actions as violation of a fundamental human rights." This signals a head-on collision between Church and state on a matter of principle. The Maltese bishops, Vatican radio reported yesterday, have expressed their regret at the decision on Friday by Mr Dom Mintoff's Labour Government to implement part of the act passed last month which will transfer some money and property, left to the Church to Labour thought of Ulster pull-out' By Julia Langdon, Political Correspondent The last Labour Government seriously considered the possibility of a British withdrawal from Northern Ireland during its first two years in office, it was disclosed yesterday. A Cabinet sub-committee known as. the In Committee discussed the possibility as one of a series of plans for the future of the province. The Prime Minister the then Mr Harold Wilson.

chaired the sub-committee during the discussions between 1974 and 1976. The fact that the question was discussed has emerged in the wake of an article in yesterday's Guardian by Mr Tony Benn, who asserted that during his membership Letters, page 10 of the Cabinet in the course of that government the option of withdrawal was never seriously considered. Thai has been repudiated in a letter published in the Guardian today from' Mr Mcrlvn Rees, who served as Northern Ireland Secretary from 1974 to 197G. In his letter Mr Rees rejects the suggestion made by. Mr Benn that Britain retained control of Northern Ireland because an analysis by the chiefs of staff maintained that an independent and unified Ireland could constitute a defence threat.

Mr Rees maintains that this is not so, and will be proved to be inaccurate in an analysis of all Cabinet, Cabinet sub-committees, and Northern Ireland Office papers, which he plans to publish later this year. The former minister kept diaries at the time which back his case, he says. "The option of withdrawal was seriously considered in Cabinet sub-committee between 1974 and 1976. Jt was not the views of the Chiefs of Staff that turned us against the! option." Mr Rees insists that it was the united opposition of himself as Secretary of State supported by the Dublin Government, the Social Democratic and Labour Party, the Northern Ireland Labour Party, the relevant trades unions, and British Labour Turn to back page, col. 8 submit new, modified rules which would then be exempt from OFT registration.

Or it could use the threat of legislation to get the OFT to withdraw the action, in return for an undertaking by the exchange to change its rules. The last course would be administratively easiest. But the authorities are known to be worried about the whole question of the City regulation, and would like to stop the case without giving the impression that the exchange has been given all it has asked. The concessions the Exchange is prepared to make are mainly in its commission At present it fixes the minimum commission that members charge on deals. This means that brokers are unable to compete for business on price, but instead compete by offering extensive research to attract the large investing institutions.

This guarantees large profits from the brokers most successful at getting institutional business. The exchange is believed to be prepared to phase out its minimum commission regulations over a number of years. In return for this, and for some easing of conditions of entry to the Exchange, the Exchange will be allowed to keep its system of having separate jobbers and brokers. The jobbers deal in the shares themselves, but do not deal in London directly with The brokers, who. do.

deal 'with the cannot trade in shares between each other, but are forced to go through the jobbers. Some brokers have been preparing for the carnage that is predicted if some of the key rules are changed, including one which forbids outsiders from taking more than a 30 per cent stake in a broker. Several firms are already expecting a wave of takeovers by British and foreign institutions which would concentrate power in fewer hands and wipe out many of the smaller firms, which would be weakened by a commission war. The Treasury has been re viewing City practices across a broad front. The Lloyd's scan dals have highlighted deficien cies but other areas' such as commodities dealing have also caused concern, and there have been criticisms of the Govern ment's own effectiveness.

Health cuts LONDON and the South-east will be hardest hit when hospital and health service cuts are announced in the next few weeks. Back page NHS "windfall," page 2. Councils' bonus THE planned abolition of the Greater London Council and the six metropolitan counties means they will almost certainly be allowed an extra year of office. Back page. Real India UNDERNEATH the imported institutions of commerce, education and law jies the real India, the religious framework that permeates everyday life.

Page 17. Gemayel mission PRESIDENT GEMAYEL left for Washington yesterday to seek a new formula for the withdrawal of foreign forces from Lebanon. Page 7. Market moves POUND up .0040 to $1.5205 FT index up 4.9 to 688.5 Dow Jones down 2.41 to 1189.9. Markets, page 20.

INSIDE Arts, Reviews 9 Business and finance. 1.8-20 Crosswords 25, 26 Education Guardian 11-16, 21 Guardian Women 8 Home News 2-4, 26 Letters 10 Overseas News 6, 7 Parliament 21 Sports News 22, 23 TV AND RADIO 24 ENTERTAINMENTS 24 PERSONAL 25 The weather SUNNY periods, rain in places. Details, back page. NEWS IN BRIEF Guinness cuts jobs all of us in tne Americas wornect together to hold Nicaragua accountable for the promises made and broken four years ago? He said there was a vital link between events in Nicara gua and in Salvador. "The dictators in Nicaragua are actively trying to destroy the budding democracy in neighbouring El Salvador." Acknowledging however that a human rights problem docs exist in El Salvador, he said: "The killing must stop." The commission announced by Mr Reagan was first proposed by Senator Henry Jack-Turn to back page, col.

6 company must catch up with best industry practice. Our aim is to perform far more cost effectively and increase productivity." Senior management informed the workforce of the plans on Friday and a company spokesman said yesterday that the unions' reaction had been "constructive and realistic." The main unions involved are the Transport and General Workers' and the Amalgamated Union of Engineering Workers. Guinness has already announced a five-year redundancy programme at its brewery in Dublin. More than 1,000 jobs are expected to go there by 1986. Metal Box is to shed another 275 jobs at its plant in Neath, south Wales.

The cut will bring the" staff to below 1,000, compared to well over 2,000 four years ago. Our position as Leader is in keeping with the quality of By Hella Pick Restrictive legislation being introduced in Poland after martial law is unlikely to deflect the United States and other Western governments from their plans to lift, a number of important sanctions against Poland and to resume discussions to reschedule Poland's large hard currency debt. In the expectation that martial law will be lifted on Friday, Polish Independence Day, the Reagan Administration has told Poland that it is ready to relax sanctions, provided most, if not all, political prisoners are released at the same time. US officials have also told Poland that the US would join other creditor countries at a meeting in Paris on July 29 to consider a response to Poland's request for a 20-year rescheduling of its S26 billion debt, of which $11 billion is owed dir ectly to governments. The Americans, with their allies, apparently intend to stand by these promises, even though there are distinct reservations and considerable disappointment about the severity of some of the legislative measures with which General Jaru-zelski is seeking to replace martial law.

However, they will want to see how the government's new Dowers are used before em barking on a fresh round of condemnation. The extent of the powers the government is seeking will only become clear tomorrow when the Sejm meets for a two-day session, during which, it is now widely assumed, resident jaoionsKi will announce that martial law will end on Friday. Amnesty legislation will also be' introduced, even though about 40 leading Solidarity activists are expected to remain in gaol. The other political prisoners 50 according to the government will be freed. The official news agency, PAP, yesterday added to the air of expectation when, it announced that the Military Council for National Salvation had agreed that the end of martial law "would meet the needs of normalisation." The legal preparations for normalisation began last week, when the Sejm was asked to approve a series of constitutional amendments, including power for the Govern-Turn to back page, col.

1 zines out of his carrier bag and showed them to Barry Dickson, aged 35, who remembered them well. Inside the studios, Ken Townsend, aged 50, now general manager, remembered the day in June 1962 when he was a technical engineer for the Beatles' first session. That was on June 6., We were very impressed with them as people but we didn't know they would be very successful. "It was my stupid idea to open this place to the public. It's mostly for the Americans and Japanese.

We've been astounded by the interest. I've given 51 press interviews in the last week, to people from all over the world." Ken was in the studios on the day the zebra crossing became famous. "I remember them taking the photograph. I don't know what it means, but someone is going to get killed out there one day. We've had some near-misses already." finance the saying of masses, into the hands of the Government.

The bishops said Contrary to what has been said, the measure taken does not conform in any way with the law of the Church. The mass in itself is a spiritual good and therefore it is only the Pope, as Vicar of Christ, who has competence over it. No one except the Pope, therefore, has the right to intervene in matters concerning masses." The bishops denounced the bill shortly before it was presented to parliament as a most serious interference, contrary to Maltese and to Church law. A few days later the Vatican fully endorsed their stand The Vatican is also expected to give public support for the bishop's latest statement very soon. Full report, page 6 Scotch wTnSTi'J V-tRS run SCO AND STILL AN INDEPENDENT COMPANY lit the blend Fans out of step in Abbey Road Spending short fall GOVERNMENT departments and local authorities under-pent their cash allowances by 2.2 billion last year.

Back page Jcnkin's solution, page 17. Ferries threat SEAMEN'S leaders from main Channel ferry ports will meet on Friday to discuss industrial action. Page 2. Newsam post MR PETER NEWSAM, above, the chairman of the Commission for Racial. Equality, is to join the Scott Trust, which owns the Guardian, the Manchester Evening News and the other papers in the group.

Before joining the C.RR, Newsam was Education Officer "for the Inner London Education Authority. Ethnic records call, page 4. Opec accord OPEC ministers decided yesterday to maintain the price and output levels hammered out four months ago. Page 18 England victory ENGLAND beat New Zealand bv 189 runs in the first Test. Page 22.

By Patrick Wintour, Labour Staff Guinness is cutting the 1500-strong labour force at its brewery in Park Royal, London, by 550 over four years. Most of the job cuts are expected to take place in the first year, mainly through voluntary redundancies and early retirement. There has been a 10 per ppnt inrrease' in sales of draught Guinness since the company mucn puDiicisea ae-cision to take Guinness "down market" and to change advertising agencies. But the company has been oiiffprinfT a lnnff.term decline in sales of Guinness and its Harp lager is facing increasing com petition. Guinness group chief executive Mr F.rnest Saunders said yesterday: "Our Park Royal my brother is looking after my apartment.

I told him If there's a fire to hell with the cat save the Beatles records I didn't know anything about American music, then I heard the Beatles and I started to get into Little Richard and Chuck Berry. That was when I was six. I was precocious. I guess I was in love with John Lennon." While she stood in the shade, waiting to pay 4.50 to gel into" the studios, other less devout maniacs acted out their rites on the zebra crossing, reconstructing the photograph John wearing white like a priest, Ringo in black like an undertaker, George scruffy as a grave digger, Paul barefoot, out of step and carrying a cigarette, all of which had deadly implications for some of the. faithful.

Backwards and forwards they trooped, setting up the picture, holding up the traffic. No-orie was safe. Georgina Wates, who was only one year old when the famous photograph was taken, was waiting for friends, when she was recruited to make up a fab foursome. I was the only one with a cigarette, so I was Paul," she said. The three maniacs who recruited her were happy.

Alan Field, aged 16, wearing' the Beatles suit he bought in Carnaby Street, watched with his friends, Gary Hayes and David Piper. "The Beatles are my main group," said Alan. "I like the 60s." But we are not psychedelic," said David. "We're early 60s, not late 60s or 70s. Everything John Lennon did was brilliant, but we're not intft baggism or shag-gism or whatever." On the zebra crossing, a Japanese Paul McCartney was having trouble staying out of step with his friends.

They kept trying. David Edwards, aged 33, an unemployed builder, pulled a collection of old Beatle maga By Nick Davles Abbey Road in north London on a July morning in 1983 Beatle jackets, Beatle books and magazines, Beatle records, Beatle gossip, Beatle memories. Some manias never die par ticularly the one about tne zeora crossing. The maniacs were out in strength for the public opening of EMI's studios, where the Beatles recorded 188 of their 210 songs and where, in-1969, they filed across the zebra crossing for the photograph which decorated the cover of their famous album Abbey Road. Gayle Hoffman from New York was there, aged 25, a veteran among the new gener ation of maniacs.

I into the Beatles when I was six. I used to sleep with the radio on under my pillow. Other people had stuffed animals, but I had a radio. 'In Manhattan, right now, BELL'S Scotland's Number One Quality Scotch AIUI IUR BELL 6 SONS pic, ESTABLISHED 1825.