Profits at all of Chemapol's six main chemicals subsidiaries collapsed in 1996, and two even started losing money.

ECONOMIST: A man for all seasons . . .

The devaluation also harmed Chemapol's pharmaceutical-distribution business, which cannot charge more for imported drugs whose prices are regulated.

ECONOMIST: A man for all seasons . . .

BAe-Saab has a deal with Chemapol Machinery, a wholly owned subsidiary of Chemapol Group, a holding and trading company.

ECONOMIST: Selling arms to Central Europe

Nevertheless, now that Chemapol has drifted into trouble, they are a distraction and a drain on capital and cash flow.

ECONOMIST: A man for all seasons . . .

But what did Chemapol want with such businesses as a regional airline, a national newspaper, financial services and Omnipol, which is the country's biggest arms dealer and an ally of British Aerospace?

ECONOMIST: A man for all seasons . . .