Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 29, 1993 TAG: 9304290038
SECTION: BUSINESS PAGE: B8 EDITION: METRO
SOURCE: DIRK BEVERIDGE ASSOCIATED PRESS
DATELINE: LONDON LENGTH: Medium
In February, it was New York recovering from the World Trade Center blast, which killed six people and injured 1,000. In March, 13 bombs rocked Bombay, damaging India's financial capital and killing 300 people.
In April 1992, London's financial district was hit by a huge bomb, causing $1.2 billion in damages. The recovery process was under way once again last weekend - and damage from last year hadn't all been repaired.
The Irish Republican Army on Sunday claimed responsibility for the massive bomb explosion Saturday that killed one person and left the financial district a roped-off tangle of shattered buildings and streets littered with broken glass and debris. Damages could surpass $1.5 billion.
"The best way to frustrate the terrorists is to have the city back at work tomorrow, and we are working hard to ensure that it is," Sir Francis McWilliams, lord mayor of London, said Sunday.
The bombs also can drive away business, Geldard said. After the 1992 blast, the British government reluctantly agreed to act as reinsurer of last resort after insurance companies said they would stop offering terrorism coverage for big buildings.
But in all the attacks, vital businesses have found ways to resume operations quickly, even if full repairs take months. Financial traders need to operate when markets are open because a sudden sharp movement in prices can wipe out anyone who cannot respond.
"Millions can be lost when you can't get into your office to deal," said Terry Galgey, who began setting up a small business called Emergency Dealing Services after the IRA blast last April.
Several companies set up temporary trading desks hoping to rent space to traders who are unable to get into or use their offices. The telephone company set up a special line to help affected businesses get phone lines.
Also, some landlords saw an opportunity to lease property that has been sitting dormant during Britain's long recession. The Corporation of London - the major landowner in the financial district - said it had 12 inquiries from businesses displaced by the bombing and three had found new accommodations.
The Stock Exchange, Lloyd's of London insurance and the Bank of England suffered slight to moderate damage, such as broken windows, but no structural damage or problems with computers, telephones or power lines.
Despite the IRA's campaign to drive the British out of Northern Ireland, London officials insist their city will remain Europe's financial capital and an economic powerhouse for Britain.
London is the world's top market for foreign exchange trading and its stock exchange is Europe's largest. It also is a huge banking center, with 526 banks handling 27 percent of world banking, said Michael Cassidy, chairman of the Corporation of London's policy committee.
"There are risks everywhere," McWilliams said. "There are risks in New York. There are risks in Paris. There are risks in Berlin. But people will come to London because London is the place to be."
Keywords:
FATALITY
by CNB