Confidence NN B in IN O the DT B pound NN I is VBZ O widely RB O expected VBN O to TO O take VB O another DT B sharp JJ I dive NN I if IN O trade NN B figures NNS I for IN O September NNP B , , O due JJ O for IN O release NN B tomorrow NN B , , O fail VB O to TO O show VB O a DT B substantial JJ I improvement NN I from IN O July NNP B and CC I August NNP I 's POS B near-record JJ I deficits NNS I . . O Chancellor NNP O of IN O the DT B Exchequer NNP I Nigel NNP O Lawson NNP O 's POS B restated VBN I commitment NN I to TO O a DT B firm NN I monetary JJ I policy NN I has VBZ O helped VBN O to TO O prevent VB O a DT B freefall NN I in IN O sterling NN B over IN O the DT B past JJ I week NN I . . O But CC O analysts NNS B reckon VBP O underlying VBG B support NN I for IN O sterling NN B has VBZ O been VBN O eroded VBN O by IN O the DT B chancellor NN I 's POS B failure NN I to TO O announce VB O any DT B new JJ I policy NN I measures NNS I in IN O his PRP$ B Mansion NNP I House NNP I speech NN I last JJ B Thursday NNP I . . O This DT B has VBZ O increased VBN O the DT B risk NN I of IN O the DT B government NN I being VBG O forced VBN O to TO O increase VB O base NN B rates NNS I to TO O 16 CD B % NN I from IN O their PRP$ B current JJ I 15 CD I % NN I level NN I to TO O defend VB O the DT B pound NN I , , O economists NNS B and CC O foreign JJ B exchange NN I market NN I analysts NNS I say VBP O . . O `` `` O The DT B risks NNS I for IN O sterling NN B of IN O a DT B bad JJ I trade NN I figure NN I are VBP O very RB O heavily RB O on IN O the DT B down JJ I side NN I , , O '' '' O said VBD O Chris NNP B Dillow NNP I , , O senior JJ B U.K. NNP I economist NN I at IN O Nomura NNP B Research NNP I Institute NNP I . . O `` `` O If IN O there EX B is VBZ O another DT B bad JJ I trade NN I number NN I , , O there EX B could MD O be VB O an DT B awful JJ I lot NN I of IN O pressure NN B , , O '' '' O noted VBD O Simon NNP B Briscoe NNP I , , O U.K. NNP B economist NN I for IN O Midland NNP B Montagu NNP I , , O a DT B unit NN I of IN O Midland NNP B Bank NNP I PLC NNP I . . O Forecasts NNS B for IN O the DT B trade NN I figures NNS I range VBP O widely RB O , , O but CC O few JJ B economists NNS I expect VBP O the DT B data NNS I to TO O show VB O a DT B very RB I marked VBN I improvement NN I from IN O the DT B # # I 2 CD I billion CD I -LRB- ( I $ $ I 3.2 CD I billion CD I -RRB- ) I deficit NN I in IN O the DT B current JJ I account NN I reported VBD O for IN O August NNP B . . O The DT B August NNP I deficit NN I and CC O the DT B # # I 2.2 CD I billion CD I gap NN I registered VBN O in IN O July NNP B are VBP O topped VBN O only RB O by IN O the DT B # # I 2.3 CD I billion CD I deficit NN I of IN O October NNP B 1988 CD I . . O Sanjay NNP B Joshi NNP I , , O European JJ B economist NN I at IN O Baring NNP B Brothers NNPS I & CC I Co. NNP I , , O said VBD O there EX B is VBZ O no DT B sign NN I that IN O Britain NNP B 's POS B manufacturing NN I industry NN I is VBZ O transforming VBG O itself PRP B to TO O boost VB O exports NNS B . . O At IN O the DT B same JJ I time NN I , , O he PRP B remains VBZ O fairly RB O pessimistic JJ O about IN O the DT B outlook NN I for IN O imports NNS B , , O given VBN O continued VBD B high JJ I consumer NN I and CC I capital NN I goods NNS I inflows NNS I . . O He PRP B reckons VBZ O the DT B current JJ I account NN I deficit NN I will MD O narrow VB O to TO O only RB B # # I 1.8 CD I billion CD I in IN O September NNP B . . O However RB O , , O Mr. NNP B Dillow NNP I said VBD O he PRP B believes VBZ O that IN O a DT B reduction NN I in IN O raw JJ B material NN I stockbuilding VBG I by IN O industry NN B could MD O lead VB O to TO O a DT B sharp JJ I drop NN I in IN O imports NNS B . . O Combined VBN O with IN O at IN B least JJS I some DT I rebound NN I in IN O exports NNS B after IN O August NNP B 's POS B unexpected JJ I decline NN I , , O the DT B deficit NN I could MD O narrow VB O to TO O as RB B little JJ I as IN I # # I 1.3 CD I billion CD I . . O Mr. NNP B Briscoe NNP I , , O who WP B also RB O forecasts VBZ O a DT B # # I 1.3 CD I billion CD I current JJ I account NN I gap NN I , , O warns VBZ O that IN O even RB O if IN O the DT B trade NN I figures NNS I are VBP O bullish JJ O for IN O sterling NN B , , O the DT B currency NN I wo MD O n't RB O advance VB O much JJ B because IN O investors NNS B will MD O want VB O to TO O see VB O further JJ B evidence NN I of IN O the DT B turnaround NN I before IN O adjusting VBG O positions NNS B . . O Nevertheless RB O , , O he PRP B noted VBD O , , O `` `` O No DT B one PRP I will MD O want VB O to TO O go VB O into IN O the DT B trade NN I figures NNS I without IN O a DT B flat JJ I position NN I '' '' O in IN O the DT B pound NN I . . O Meanwhile RB O , , O overall JJ B evidence NN I on IN O the DT B economy NN I remains VBZ O fairly RB O clouded VBN O . . O In IN O his PRP$ B Mansion NNP I House NNP I speech NN I , , O Mr. NNP B Lawson NNP I warned VBD O that IN O a DT B further JJ I slowdown NN I can MD O be VB O expected VBN O as IN O the DT B impact NN I of IN O the DT B last JJ I rise NN I in IN O interest NN B rates NNS I earlier RBR B this DT I month NN I takes VBZ O effect NN B . . O U.K. JJ B base NN I rates NNS I are VBP O at IN O their PRP$ B highest JJS I level NN I in IN O eight CD B years NNS I . . O But CC O consumer NN B expenditure NN I data NNS I released VBD O Friday NNP B do VBP O n't RB O suggest VB O that IN O the DT B U.K. NNP I economy NN I is VBZ O slowing VBG O that DT O quickly RB O . . O The DT B figures NNS I show VBP O that DT O spending NN B rose VBD O 0.1 CD B % NN I in IN O the DT B third JJ I quarter NN I from IN O the DT B second JJ I quarter NN I and CC O was VBD O up IN O 3.8 CD B % NN I from IN O a DT B year NN I ago RB O . . O This DT B compares VBZ O with IN O a DT B 1.6 CD I % NN I rise NN I in IN O the DT B second NN I from IN O the DT B first JJ I quarter NN I and CC O a DT B 5.4 CD I % NN I increase NN I from IN O the DT B second JJ I quarter NN I of IN O 1988 CD B . . O Mr. NNP B Dillow NNP I said VBD O the DT B data NNS I show VBP O the DT B economy NN I `` `` O is VBZ O still RB O quite RB O strong JJ O , , O '' '' O but CC O suggestions NNS B that IN O much NN B of IN O the DT B spending NN I went VBD O on IN O services NNS B rather RB O than IN O consumer NN B goods NNS I should MD O reduce VB O fears NNS B of IN O more JJR B import NN I rises NNS I . . O Certainly RB O , , O the DT B chancellor NN I has VBZ O made VBN O it PRP B clear JJ O that IN O he PRP B is VBZ O prepared VBN O to TO O increase VB O interest NN B rates NNS I again RB O if IN O necessary JJ O to TO O both DT O ensure VB O that IN O a DT B substantial JJ I slowdown NN I does VBZ O take VB O place NN B and CC O that DT O sterling NN B does VBZ O n't RB O decline VB O further JJ O . . O Thursday NNP B , , O he PRP B reminded VBD O his PRP$ B audience NN I that IN O the DT B government NN I `` `` O can MD O not RB O allow VB O the DT B necessary JJ I rigor NN I of IN O monetary JJ B policy NN I to TO O be VB O undermined VBN O by IN O exchange NN B rate NN I weakness NN I . . O '' '' O Analysts NNS B agree VBP O there EX B is VBZ O little JJ B holding NN O sterling NN B firm NN O at IN O the DT B moment NN I other JJ O than IN O Mr. NNP B Lawson NNP I 's POS B promise NN I that IN O rates NNS B will MD O be VB O pushed VBN O higher JJR O if IN O necessary JJ O . . O And CC O , , O they PRP B warn VBP O , , O any DT B further JJ I drop NN I in IN O the DT B government NN I 's POS B popularity NN I could MD O swiftly RB O make VB O this DT B promise NN I sound NN O hollow JJ O . . O Sterling NNP B was VBD O already RB O showing VBG O some DT B signs NNS I of IN O a DT B lack NN I of IN O confidence NN B in IN O Mr. NNP B Lawson NNP I 's POS B promise NN I Friday NNP B . . O In IN O European JJ B trading NN I it PRP B declined VBD O to TO O $ $ B 1.5890 CD I and CC O 2.9495 CD B marks NNS I from IN O $ $ B 1.5940 CD I and CC O 2.9429 CD B marks NNS I late JJ B Thursday NNP I . . O Economists NNS B suggested VBD O that IN O if IN O the DT B pound NN I falls VBZ O much JJ B below IN O 2.90 CD B marks NNS I , , O the DT B government NN I will MD O be VB O forced VBN O to TO O increase VB O rates NNS B to TO O 16 CD B % NN I , , O both DT O to TO O halt VB O any DT B further JJ I decline NN I and CC O ensure VB O that IN O the DT B balance NN I of IN O monetary JJ B policy NN I remains VBZ O unchanged JJ O . . O Friday NNP B 's POS B Market NNP I Activity NN I The DT B dollar NN I posted VBD O gains NNS B in IN O quiet JJ B trading NN I as IN O concerns NNS B about IN O equities NNS B abated VBN O . . O Foreign JJ B exchange NN I dealers NNS I said VBD O that IN O the DT B currency NN I market NN I has VBZ O begun VBN O to TO O distance VB O itself PRP B from IN O the DT B volatile JJ I stock NN I exchange NN I , , O which WDT B has VBZ O preoccupied VBN O the DT B market NN I since IN O Oct. NNP B 13 CD I , , O when WRB O the DT B Dow NNP I Jones NNP I Industrial NNP I Average NNP I plunged VBD O more JJR B than IN I 190 CD I points NNS I . . O Currency NN B analysts NNS I predict VBP O that IN O in IN O the DT B coming VBG I week NN I the DT B foreign JJ I exchange NN I market NN I will MD O shift VB O its PRP$ B focus NN I back RB O to TO O economic JJ B fundamentals NNS I , , O keeping VBG O a DT B close NN I eye NN I out IN O for IN O any DT B signs NNS I of IN O monetary JJ B easing NN I by IN O U.S. NNP B Federal NNP I Reserve NNP I . . O Late RB O in IN O the DT B New NNP I York NNP I trading NN I day NN I , , O the DT B dollar NN I was VBD O quoted VBN O at IN O 1.8578 CD B marks NNS I , , O up IN O from IN O 1.8470 CD B marks NNS I late JJ B Thursday NNP I in IN O New NNP B York NNP I . . O The DT B U.S. NNP I currency NN I was VBD O also RB O changing VBG O hands NNS B at IN O 142.43 CD B yen NN I , , O up IN O from IN O 141.70 CD B yen NN I in IN O New NNP B York NNP I late JJ B Thursday NNP I . . O In IN O Tokyo NNP B on IN O Monday NNP B , , O the DT B U.S. NNP I currency NN I opened VBD O for IN O trading NN B at IN O 141.95 CD B yen NN I , , O up IN O from IN O Friday NNP B 's POS B Tokyo NNP I close NN I of IN O 141.35 CD B yen NN I . . O On IN O the DT B Commodity NNP I Exchange NNP I in IN O New NNP B York NNP I , , O gold NN B for IN O current JJ B delivery NN I settled VBD O at IN O $ $ B 367.30 CD I an DT B ounce NN I , , O up IN O 20 CD B cents NNS I . . O Estimated VBN B volume NN I was VBD O a DT B light NN I 2.4 CD I million CD I ounces NNS I . . O In IN O early JJ B trading NN I in IN O Hong NNP B Kong NNP I Monday NNP B , , O gold NN B was VBD O quoted VBN O at IN O $ $ B 366.50 CD I an DT B ounce NN I . . O East NNP B Rock NNP I Partners NNP I Limited NNP I Partnership NNP I said VBD O it PRP B proposed VBD O to TO O acquire VB O A.P. NNP B Green NNP I Industries NNP I Inc. NNP I for IN O $ $ B 40 CD I a DT B share NN I . . O In IN O an DT B Oct. NNP I 19 CD I letter NN I to TO O A.P. NNP B Green NNP I 's POS B board NN I , , O East NNP B Rock NNP I said VBD O the DT B offer NN I is VBZ O subject NN O to TO O the DT B signing NN I of IN O a DT B merger NN I agreement NN I by IN O no DT O later RB O than IN O Oct. NNP B 31 CD I . . O The DT B letter NN I , , O attached VBN O to TO O a DT B filing NN I with IN O the DT B Securities NNP I and CC I Exchange NNP I Commission NNP I , , O said VBD O the DT B approval NN I is VBZ O also RB O contingent JJ O upon IN O obtaining VBG O satisfactory JJ B financing NN I . . O An DT B A.P. NNP I Green NNP I official NN I declined VBD O to TO O comment VB O on IN O the DT B filing NN I . . O The DT B $ $ I 40-a-share JJ I proposal NN I values VBZ O the DT B company NN I at IN O about RB B $ $ I 106.6 CD I million CD I . . O A.P. NNP B Green NNP I currently RB O has VBZ O 2,664,098 CD B shares NNS I outstanding JJ O . . O Its PRP$ B stock NN I closed VBD O at IN O $ $ B 38 CD I , , O up IN O $ $ B 1.875 CD I , , O in IN O national JJ B over-the-counter JJ I trading NN I . . O The DT B company NN I is VBZ O a DT B Mexico NNP I , , I Mo. NNP I , , I maker NN I of IN O refractory JJ B products NNS I . . O East NNP B Rock NNP I also RB O said VBD O in IN O the DT B filing NN I that IN O it PRP B boosted VBD O its PRP$ B stake NN I in IN O A.P. NNP B Green NNP I to TO O 8.7 CD B % NN I . . O It PRP B now RB O holds VBZ O 233,000 CD B A.P. NNP I Green NNP I common JJ I shares NNS I , , O including VBG O 30,000 CD B shares NNS I bought VBD O last JJ B Thursday NNP I for IN O $ $ B 35.50 CD I to TO I $ $ I 36.50 CD I a DT B share NN I . . O New NNP B York-based JJ I John NNP I Kuhns NNP I and CC I Robert NNP I MacDonald NNP I control NN O East NNP B Rock NNP I Partners NNP I Inc. NNP I , , O the DT B sole JJ I general JJ I partner NN I of IN O East NNP B Rock NNP I Partners NNP I L.P NNP I . . O The DT B sole JJ I limited JJ I partner NN I of IN O the DT B partnership NN I is VBZ O Westwood NNP B Brick NNP I Lime NNP I Inc. NNP I , , O an DT B indirect JJ I subsidiary NN I of IN O Westwood NNP B Group NNP I Inc NNP I . . O Both DT O Westwood NNP B Brick NNP I and CC O Westwood NNP B Group NNP I are VBP O based VBN O in IN O Boston NNP B . . O Freight NN B rates NNS I , , O declining VBG O for IN O most RBS B of IN O the DT B decade NN I because IN O of IN O competition NN B spurred VBN O by IN O deregulation NN B , , O are VBP O bottoming VBG O out IN O , , O turning VBG O upward RB O and CC O threatening VBG O to TO O fuel VB O inflation NN B . . O Trucking NNP B , , I shipping VBG I and CC I air-freight NN I companies NNS I have VBP O announced VBN O rate NN B increases NNS I , , O scheduled VBN O for IN O this DT B fall NN I or CC O early JJ B next JJ I year NN I , , O reflecting VBG O higher JJR B costs NNS I and CC O tightened VBD B demand NN I for IN O freight NN B transport NN I . . O Major JJ B shippers NNS I say VBP O they PRP B expect VBP O freight NN B rates NNS I to TO O rise VB O at IN O least JJS O as RB O fast RB O as IN O inflation NN B and CC O maybe RB O faster RBR O in IN O the DT B next JJ I few JJ I years NNS I . . O That DT B 's VBZ O a DT B big JJ I change NN I from IN O recent JJ B years NNS I when WRB O freight NN B haulage NN I was VBD O a DT B bright JJ I spot NN I for IN O U.S. NNP B productivity NN I , , O helping VBG O to TO O restrain VB O inflation NN B and CC O make VB O U.S. NNP B industry NN I more RBR O competitive JJ O abroad RB O . . O `` `` O Demand NN B has VBZ O caught VBN O up IN O with IN O the DT B supply NN I of IN O certain JJ B types NNS I of IN O freight NN B transportation NN I , , O and CC O rates NNS B are VBP O starting VBG O to TO O move VB O up IN O '' '' O at IN O a DT B rate NN I `` `` O close RB O to TO O or CC O slightly RB O more JJR O than IN O the DT B inflation NN I rate NN I , , O '' '' O said VBD O Clifford NNP B Sayre NNP I , , O director NN B of IN O logistics NNS B at IN O Du NNP B Pont NNP I Co NNP I . . O Shippers NNS B surveyed VBN O recently RB O by IN O Ohio NNP B State NNP I University NNP I said VBD O they PRP B expect VBP O their PRP$ B freight-transport JJ I , , I storage NN I and CC I distribution NN I costs NNS I to TO O rise VB O about IN B 4 CD I % NN I this DT B year NN I . . O Only RB B 10 CD I % NN I of IN O the DT B 250 CD I shippers NNS I polled VBN O expected VBN O their PRP$ B freight-transport JJ I costs NNS I to TO O decrease VB O , , O compared VBN O with IN O 30 CD B % NN I who WP B had VBD O looked VBN O to TO O freight VB B transport NN I to TO O reduce VB O costs NNS B in IN O past JJ B years NNS I . . O `` `` O This DT B is VBZ O the DT B first JJ I year NN I since IN O transportation NN B deregulation NN I in IN O 1980 CD B that IN O we PRP B have VBP O had VBN O such JJ B a DT I dramatic JJ I and CC I broad-based JJ I upturn NN I in IN O perceived VBN B transportation NN I rates NNS I , , O '' '' O said VBD O Bernard NNP B LaLonde NNP I , , O a DT B transportation NN I logistics NNS I professor NN I at IN O Ohio NNP B State NNP I in IN O Columbus NNP B . . O The DT B deregulation NN I of IN O railroads NNS B and CC I trucking NN I companies NNS I that WDT B began VBD O in IN O 1980 CD B enabled VBD O shippers NNS B to TO O bargain VB O for IN O transportation NN B . . O Carriers NNP B could MD O use VB O their PRP$ B equipment NN I more RBR O efficiently RB O , , O leading VBG O to TO O overcapacity NN B they PRP B were VBD O eager JJ O to TO O fill VB O . . O Shippers NNS B cut VBP O about RB B $ $ I 35 CD I billion CD I from IN O their PRP$ B annual JJ I , , I inter-city JJ I truck NN I and CC I rail NN I costs NNS I , , O to TO O about RB B $ $ I 150 CD I billion CD I , , O or CC O about IN B 6.4 CD I % NN I of IN O gross JJ B national JJ I product NN I , , O down RB O from IN O 8 CD B % NN I of IN O GNP NNP B in IN O 1981 CD B . . O But CC O with IN O much NN B of IN O the DT B inefficiency NN I squeezed VBN O out IN O of IN O the DT B freight-transport JJ I system NN I , , O rising VBG B costs NNS I are VBP O likely JJ O to TO O be VB O reflected VBN O directly RB O in IN O higher JJR B freight NN I rates NNS I . . O `` `` O Shippers NNS B are VBP O saying VBG O ` `` O the DT B party NN I 's POS O over IN O , , O ' '' O '' '' O said VBD O Mr. NNP B LaLonde NNP I . . O `` `` O Shippers NNS B wo MD O n't RB O be VB O able JJ O to TO O look VB O for IN O transportation-cost JJ B savings NNS I as IN O they PRP B have VBP O for IN O the DT B last JJ I eight CD I or CC I nine CD I years NNS I . . O Transport NN B rates NNS I wo MD O n't RB O be VB O an DT B opportunity NN I for IN O offsetting VBG O cost NN B increases NNS I in IN O other JJ B segments NNS I of IN O the DT B economy NN I . . O '' '' O Robert NNP B Delaney NNP I , , O a DT B consultant NN I at IN O Arthur NNP B D. NNP I Little NNP I Inc. NNP I , , O Cambridge NNP B , , O Mass. NNP B , , O said VBD O `` `` O We PRP B 've VBP O gotten VBN O all PDT B the DT I benefits NNS I of IN O deregulation NN B in IN O freight-cost JJ B reductions NNS I . . O Now RB O we PRP B are VBP O starting VBG O to TO O see VB O real JJ B freight-rate JJ I increases NNS I as IN O carriers NNS B replace VBP O equipment NN B , , O pay VB O higher JJR B fuel NN I costs NNS I and CC O pay VB O more JJR B for IN O labor NN B . . O You PRP B 'll MD O see VB O carriers NNS B try VB O to TO O recoup VB O some DT B of IN O the DT B price NN I cutting VBG I that WDT B occurred VBD O previously RB O . . O '' '' O Not RB B everyone NN I believes VBZ O that IN O the DT B good JJ I times NNS I are VBP O over IN O for IN O shippers NNS B . . O `` `` O There EX B 's VBZ O still RB O a DT B lot NN I of IN O pressure NN B on IN O rates NNS B in IN O both DT B rail NN I and CC I truck NN I , , O '' '' O said VBD O Gerard NNP B McCullough NNP I , , O lecturer NN B in IN O transportation NN B at IN O Massachusetts NNP B Institute NNP I of IN O Technology NNP B . . O Less-than-truckload JJ B companies NNS I , , O which WDT B carry VBP O the DT B freight NN I of IN O several JJ B shippers NNS I in IN O each DT B truck NN I trailer NN I , , O discounted VBD O away RB O a DT B 4.7 CD I % NN I rate NN I increase NN I implemented VBD O last JJ B April NNP I . . O The DT B carriers NNS I were VBD O competing VBG O fiercely RB O for IN O market NN B share NN I . . O Railroad-rate JJ B increases NNS I are VBP O likely JJ O to TO O be VB O restrained VBN O by IN O weakening VBG B rail-traffic JJ I levels NNS I and CC O keen JJ B competition NN I for IN O freight NN B from IN O trucks NNS B . . O An DT B official NN I at IN O Consolidated NNP B Freightways NNP I Inc. NNP I , , O a DT B Menlo NNP I Park NNP I , , I Calif. NNP I , , I less-than-truckload JJ I carrier NN I , , O said VBD O rate NN B discounting NN I in IN O that DT B industry NN I has VBZ O begun VBN O to TO O `` `` O stabilize VB O . . O '' '' O Consolidated NNP B Freightways NNP I plans VBZ O to TO O raise VB O its PRP$ B rates NNS I 5.3 CD B % NN I late JJ B this DT I year NN I or CC O early JJ B next JJ I year NN I , , O and CC O at IN B least JJS I two CD I competitors NNS I have VBP O announced VBN O similar JJ B increases NNS I . . O