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Software Images icon An illustration of two photographs. Images Donate icon An illustration of a heart shape Donate Ellipses icon An illustration of text ellipses. It was a good day. Mr SchrOder, who will tour European capitals ahead of the special EU in Berlin next month to help craft a deal, also UBed yesterday's talks to outline a compromise proposal over the planned abolition of duty free sales within the EU on July L Qb suggested a month exten- sion before tbe Introduction of excise duties but the levying of value, added tax on such sales at mi dry ear.

Germany, Britain, France, Austria, Portugal, Greece and Ireland have called for a stay of execution for duty free, fearing its abdUtion will increase hostil- ity to the EU amo ng voters even though all tbe member states agreed to end the present regime as long ago as UK prime minister.

It was uncertain whether the latest p lanwhich requires una- nimity and will be presented to finance ministers on March 15, would succeed because Denmark has insisted on the scheduled phasing out of duty free. Mr SchrOder said nearly all leaders criticised the oegotiatlODB among EU farm ministers, who suspended their marathon discus- sions in the early hours of yester- day until next Tuesday.

This was a thinly disguised rejection of national co-financing of agricul- ture. Yesterday's was the first oppor- tunity for a discussion of Agenda among the EU leaders since their December s umm it in Vienna, and none of the leaders arrived in Bonn expecting a breakthrough. Some EU diplo- mats suggested the deadlock was part of the ritual of EU summitry and that a crisis had to be cre- ated for the March meeting so each nation could justify painful sacrifices to its voters.

However, it did not alter its earlier ruling that all chil d re n of Hong Kong permaneht residents had the right to live in the for- mer UK colony, opening tbe door for thousands of mainland chil- dren. It is unclear whether the latest move will be enough to sat- isfy Beijing.

Mainland officials and legal experts said the court had placed itself above the NPC, and told Hong Kong's secretary for justice they wanted passages of the rul- ing changed. They have not stepped back from the point they were bring asked to darify. The clarification may head off a move by the NPC to limit the court's jurisdiction by asserting its own right to interpret the Baric Law.

Unwrap the Weekend FT today and take a fresh look at the world.

The Weekend section is not just about business. The new n will examine the health of your body and the state of your mind, along with regular insights into the worlds of science and cosmology. We've given books and arts more room to breathe, with features an movements in art and music, and opened a chapter called Off-Centre, a gallimaufry of the best ideas, inventions, issues and iconoclasts. Regular features on esoteric tastes and exotic destinations retain their rightful place, along with the views of our renowned' wine columnist Jands Robinson.

The new Weekend FT gets serious about the personal and personal about the serious matters of savings, style and status. Tasteful writing about first nights, second homes and thirri h usbands.

Privately, the company appears to be steeling X itself for failure. The two are about to demonstrate an old- African maxim: the path to the presidency passes through prison. Companies, 24 BSkyB and Canal Plus dash over top management Differences have emerged between British Sky Broadcasting, the UK pay television company, and the French broadcasting company Canal Phis over which would exercise senior management control if the two groups merged.

Bonds, 8; Curren ci e s9; World stocks. 20, 21; Lex. 24 Eisner can take a bow after casting new roles Michael Eisner's installation of a new executive superstructure at Walt Disney, completed this week with the creation of two new jobs - both to be flfied by Bob Iger, president of ABC - amply demon- strated the group c h airm a n's growing grasp of domestic and interna- tional diplomacy.

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Guinness FHgM House. P0 Bos St Peter Port. Guernsey GY1 3QH. Channel lstencta. The reforms would address mounting criticism that Swe- den's tax regime penalises senior executives and is driv- ing business abroad. Large companies have complained the country's tax policies make it impossible to recruit overseas executives, and some groups have threat- ened to move their head- quarters overseas. High-in- come earners pay tax at In addition. Swedes are faced with a 1. Last year it announced plans to move some corporate func- tions to London.

Mr Asbrink, however, denied the reforms were sim- ply a response to criticism from Lndukry.

Although he did not rule out reforms in dividend and wealth taxation, Mr Asbrink emphasised that the cuts were likely to focus on labour costs and Income tax. In spite of progress in most main reform areas, governments remain sharply divided about the shape of the final package.

Diplomats warned a deal might only be agreed at a he of govern- ment summit on March 24, bnt could take longer. Problems were com- pounded when some govern- ment he, meeting near Bonn yesterday for an infor- mal summit, indicated they wanted farm ministers to take a tougher stance on cut- ting spending.

President Jacques Chirac of France said the farm reform proposals would have to be reworked because they did not meet French demands. France insists there can be no agreement on agriculture without a wider accord encompassing EU finances and regional aid. Reforms are also being negotiated for these areas.

In Brussels. European Commission officials claimed broad agreement among farm ministers for chang es to the EU's wine and rural development regimes. They also highlighted progress for cereals and beef. However, governments remain divided over dairy reform and must consider various options for cutting direct payments to formers. Milk is difficult because some countries, including the UK and Sweden, want the EU to increase produc- tion-limiting quotas before abolishing them in Oth- ers, including France, want no change.

A compromise proposed yesterday by the Co mm i s- sion and Germany, holder of the EU's rotating presidency, would increase quotas by 2.

Most countries would get 1. Ireland, Italy and Spain - would receive more. Under this compromise, guaranteed prices for milk would fall 15 per cent, as the Commission originally pro- posed. Options for cut- ting direct payments to formers would narrow, but not close, the gap.

A second, cutting ara- ble payments by 3 per cent a year and others by l per cent, would yield C3. Elec- Russia rekindles its love for iron lady New political party, Thatcherites of Russia, draws on former British prime minister for its inspiration and ideology By Thornhill in St Petersburg In tsarist times it used to be said that Russia was ruled by the tout, or whip.

Nowa- days. About Russians gath- ered in the glittering hall of the House of Friendship in St Petersburg yesterday for the founding congress of a new conservative party, the Thatcherites of Russia, which draws its inspiration from the political principles and practices of the former British prime minister.

The party, backed by a secretive group of business- men alarmed at the state of modern Russia, is wedded to the concept of parliamentary democracy, privatisation, monetarism, a fiat tax rate or 20 per cent and the cre- ation of a Russian version or the House of Lords. She brought hope. Several of the speakers from the floor, including a newspaper editor, a trade union leader, and a writer, argued that the love of the law and the virtuous eco- nomic policies championed by Lady Thatcher were uni- versally applicable.

But some of the audience grew restless during a speech touching on the tax policies pursued by the for- mer UK finance minister. Sir Geoffrey Howe. And some hecklers then seized the plat- form microphone to air their alternative political views.

One activist from the ultra nationalist Liberal Demo- cratic party screamed out that Russia must reject west- ern civilisation. Mikhail Gorny, director of Strategiya. But they are very, very weak. Nobody supports them," he said.

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