BERN, Switzerland (AP)  Swiss lawmakers Tuesday approved legislation that will enable the country's central bank to begin sales of 1,300 tons of gold reserves starting next spring.

The 151-0 vote by parliament's lower house clears the way for the upper house to take up the bill in December. It will then go to the ruling coalition Cabinet around April.

The sell-off would represent half of the National Bank's 2,600-ton reserve. The other half will be kept to underpin the Swiss franc.

"It is in our interest that the gold sales begin as fast as possible,'' Finance Minister Kaspar Villiger told lawmakers.

The central banks of Switzerland and 14 other countries last month announced that they would limit their combined sales of bullion to 400 tons per year for a total of five years.

"From Switzerland's point of view, the pact is exceedingly advantageous,'' Villiger said, noting the rally in the gold price that followed the announcement.

Villiger repeated Switzerland's long-standing pledge that the gold will be sold in careful doses over a period of years.

In a referendum last April, Swiss voters approved a constitution which ended the traditional requirement for the Swiss franc to be backed by gold.

-- Jack (mercer@usa.net), October 05, 1999